[House Report 105-769]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-769
_______________________________________________________________________


 
   MAKING APPROPRIATIONS FOR THE DEPARTMENT OF VETERANS AFFAIRS AND 
  HOUSING AND URBAN DEVELOPMENT, AND FOR SUNDRY INDEPENDENT AGENCIES, 
   BOARDS, COMMISSION, CORPORATIONS, AND OFFICES FOR THE FISCAL YEAR 
           ENDING SEPTEMBER 30, 1999, AND FOR OTHER PURPOSES

                                _______
                                

                October 5, 1998.--Ordered to be printed

_______________________________________________________________________


 Mr. Lewis of California, from the committee of conference, submitted 
                             the following

                           CONFERENCE REPORT

                        [To accompany H.R. 4194]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
4194) ``making appropriations for the Departments of Veterans 
Affairs and Housing and Urban Development, and for sundry 
independent agencies, boards, commissions, corporations, and 
offices for the fiscal year ending September 30, 1999, and for 
other purposes'', having met, after full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate, and agree to the same with an 
amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:

That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the Departments of 
Veterans Affairs and Housing and Urban Development, and for 
sundry independent agencies, boards, commissions, corporations, 
and offices for the fiscal year ending September 30, 1999, and 
for other purposes, namely:

                TITLE I--DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration


                       compensation and pensions


                     (including transfers of funds)


    For the payment of compensation benefits to or on behalf of 
veterans and a pilot program for disability examinations as 
authorized by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53, 
55, and 61); pension benefits to or on behalf of veterans as 
authorized by law (38 U.S.C. chapters 15, 51, 53, 55, and 61; 
92 Stat. 2508); and burial benefits, emergency and other 
officers' retirement pay, adjusted-service credits and 
certificates, payment of premiums due on commercial life 
insurance policies guaranteed under the provisions of Article 
IV of the Soldiers' and Sailors' Civil Relief Act of 1940, as 
amended, and for other benefits as authorized by law (38 U.S.C. 
107, 1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61; 50 
U.S.C. App. 540-548; 43 Stat. 122, 123; 45 Stat. 735; 76 Stat. 
1198), $21,857,058,000, to remain available until expended: 
Provided, That not to exceed $24,534,000 of the amount 
appropriated shall be reimbursed to ``General operating 
expenses'' and ``Medical care'' for necessary expenses in 
implementing those provisions authorized in the Omnibus Budget 
Reconciliation Act of 1990, and in the Veterans' Benefits Act 
of 1992 (38 U.S.C. chapters 51, 53, and 55), the funding source 
for which is specifically provided as the ``Compensation and 
pensions'' appropriation: Provided further, That such sums as 
may be earned on an actual qualifying patient basis, shall be 
reimbursed to ``Medical facilities revolving fund'' to augment 
the funding of individual medical facilities for nursing home 
care provided to pensioners as authorized.


                         readjustment benefits


    For the payment of readjustment and rehabilitation benefits 
to or on behalf of veterans as authorized by 38 U.S.C. chapters 
21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61, $1,175,000,000, 
to remain available until expended: Provided, That funds shall 
be available to pay any court order, court award or any 
compromise settlement arising from litigation involving the 
vocational training program authorized by section 18 of Public 
Law 98-77, as amended.


                   veterans insurance and indemnities


    For military and naval insurance, national service life 
insurance, servicemen's indemnities, service-disabled veterans 
insurance, and veterans mortgage life insurance as authorized 
by 38 U.S.C. chapter 19; 70 Stat. 887; 72 Stat. 487, 
$46,450,000, to remain available until expended.


         veterans housing benefit program fund program account


                     (including transfer of funds)


    For the cost of direct and guaranteed loans, such sums as 
may be necessary to carry out the program, as authorized by 38 
U.S.C. chapter 37, as amended: Provided, That such costs, 
including the cost of modifying such loans, shall be as defined 
in section 502 of the Congressional Budget Act of 1974, as 
amended: Provided further, That during fiscal year 1999, within 
the resources available, not to exceed $300,000 in gross 
obligations for direct loans are authorized for specially 
adapted housing loans: Provided further, That during 1999 any 
moneys that would be otherwise deposited into or paid from the 
Loan Guaranty Revolving Fund, the Guaranty and Indemnity Fund, 
or the Direct Loan Revolving Fund shall be deposited into or 
paid from the Veterans Housing Benefit Program Fund: Provided 
further, That any balances in the Loan Guaranty Revolving Fund, 
the Guaranty and Indemnity Fund, or the Direct Loan Revolving 
Fund on the effective date of this Act may be transferred to 
and merged with the Veterans Housing Benefit Program Fund.
    In addition, for administrative expenses to carry out the 
direct and guaranteed loan programs, $159,121,000, which may be 
transferred to and merged with the appropriation for ``General 
operating expenses''.


                  education loan fund program account


                     (including transfer of funds)


    For the cost of direct loans, $1,000, as authorized by 38 
U.S.C. 3698, as amended: Provided, That such costs, including 
the cost of modifying such loans, shall be as defined in 
section 502 of the Congressional Budget Act of 1974, as 
amended: Provided further, That these funds are available to 
subsidize gross obligations for the principal amount of direct 
loans not to exceed $3,000.
    In addition, for administrative expenses necessary to carry 
out the direct loan program, $206,000, which may be transferred 
to and merged with the appropriation for ``General operating 
expenses''.


            vocational rehabilitation loans program account


                     (including transfer of funds)


    For the cost of direct loans, $55,000, as authorized by 38 
U.S.C. chapter 31, as amended: Provided, That such costs, 
including the cost of modifying such loans, shall be as defined 
in section 502 of the Congressional Budget Act of 1974, as 
amended: Provided further, That these funds are available to 
subsidize gross obligations for the principal amount of direct 
loans not to exceed $2,401,000.
    In addition, for administrative expenses necessary to carry 
out the direct loan program, $400,000, which may be transferred 
to and merged with the appropriation for ``General operating 
expenses''.


          native american veteran housing loan program account


                     (including transfer of funds)


    For administrative expenses to carry out the direct loan 
program authorized by 38 U.S.C. chapter 37, subchapter V, as 
amended, $515,000, which may be transferred to and merged with 
the appropriation for ``General operating expenses''.

                     Veterans Health Administration


                              medical care


                     (including transfer of funds)


    For necessary expenses for the maintenance and operation of 
hospitals, nursing homes, and domiciliary facilities; for 
furnishing, as authorized by law, inpatient and outpatient care 
and treatment to beneficiaries of the Department of Veterans 
Affairs, including care and treatment in facilities not under 
the jurisdiction of the Department; and furnishing recreational 
facilities, supplies, and equipment; funeral, burial, and other 
expenses incidental thereto for beneficiaries receiving care in 
the Department; administrative expenses in support of planning, 
design, project management, real property acquisition and 
disposition, construction and renovation of any facility under 
the jurisdiction or for the use of the Department; oversight, 
engineering and architectural activities not charged to project 
cost; repairing, altering, improving or providing facilities in 
the several hospitals and homes under the jurisdiction of the 
Department, not otherwise provided for, either by contract or 
by the hire of temporary employees and purchase of materials; 
uniforms or allowances therefor, as authorized by 5 U.S.C. 
5901-5902; aid to State homes as authorized by 38 U.S.C. 1741; 
administrative and legal expenses of the Department for 
collecting and recovering amounts owed the Department as 
authorized under 38 U.S.C. chapter 17, and the Federal Medical 
Care Recovery Act, 42 U.S.C. 2651 et seq.; and not to exceed 
$8,000,000 to fund cost comparison studies as referred to in 38 
U.S.C. 8110(a)(5), $17,306,000,000, plus reimbursements: 
Provided, That of the funds made available under this heading, 
$778,000,000 is for the equipment and land and structures 
object classifications only, which amount shall not become 
available for obligation until August 1, 1999, and shall remain 
available until September 30, 2000: Provided further, That of 
the funds made available under this heading, not to exceed 
$27,420,000 may be transferred to and merged with the 
appropriation for ``General operating expenses'': Provided 
further, That of the funds made available under this heading, 
up to $10,000,000 shall be for implementation of the Primary 
Care Providers Incentive Act, contingent upon enactment of 
authorizing legislation.
    In addition, in conformance with Public Law 105-33 
establishing the Department of Veterans Affairs Medical Care 
Collections Fund, such sums as may be deposited to such Fund 
pursuant to 38 U.S.C. 1729A may be transferred to this account, 
to remain available until expended for the purposes of this 
account.

                    medical and prosthetic research

    For necessary expenses in carrying out programs of medical 
and prosthetic research and development as authorized by 38 
U.S.C. chapter 73, to remain available until September 30, 
2000, $316,000,000, plus reimbursements: Provided, That of the 
funds made available under this heading, $6,000,000 is for the 
Musculoskeletal Disease Center, which amount shall remain 
available for obligation until expended.


      medical administration and miscellaneous operating expenses


    For necessary expenses in the administration of the 
medical, hospital, nursing home, domiciliary, construction, 
supply, and research activities, as authorized by law; 
administrative expenses in support of planning, design, project 
management, architectural, engineering, real property 
acquisition and disposition, construction and renovation of any 
facility under the jurisdiction or for the use of the 
Department of Veterans Affairs, including site acquisition; 
engineering and architectural activities not charged to project 
cost; and research and development in building construction 
technology, $63,000,000, plus reimbursements.


                   general post fund, national homes


                     (including transfer of funds)


    For the cost of direct loans, $7,000, as authorized by 
Public Law 102-54, section 8, which shall be transferred from 
the ``General post fund'': Provided, That such costs, including 
the cost of modifying such loans, shall be as defined in 
section 502 of the Congressional Budget Act of 1974, as 
amended: Provided further, That these funds are available to 
subsidize gross obligations for the principal amount of direct 
loans not to exceed $70,000.
    In addition, for administrative expenses to carry out the 
direct loan programs, $54,000, which shall be transferred from 
the ``General post fund'', as authorized by Public Law 102-54, 
section 8.

                      Departmental Administration


                       general operating expenses


    For necessary operating expenses of the Department of 
Veterans Affairs, not otherwise provided for, including 
uniforms or allowances therefor; not to exceed $25,000 for 
official reception and representation expenses; hire of 
passenger motor vehicles; and reimbursement of the General 
Services Administration for security guard services, and the 
Department of Defense for the cost of overseas employee mail, 
$855,661,000: Provided, That funds under this heading shall be 
available to administer the Service Members Occupational 
Conversion and Training Act.


                        national cemetery system


                     (including transfer of funds)


    For necessary expenses for the maintenance and operation of 
the National Cemetery System, not otherwise provided for, 
including uniforms or allowances therefor; cemeterial expenses 
as authorized by law; purchase of six passenger motor vehicles 
for use in cemeterial operations; and hire of passenger motor 
vehicles, $92,006,000: Provided, That of the amount made 
available under this heading, not to exceed $90,000 may be 
transferred to and merged with the appropriation for ``General 
operating expenses''.


                      office of inspector general


                     (including transfer of funds)


    For necessary expenses of the Office of Inspector General 
in carrying out the Inspector General Act of 1978, as amended, 
$36,000,000: Provided, That of the amount made available under 
this heading, not to exceed $30,000 may be transferred to and 
merged with the appropriation for ``General operating 
expenses''.


                      construction, major projects


                     (including transfer of funds)


    For constructing, altering, extending and improving any of 
the facilities under the jurisdiction or for the use of the 
Department of Veterans Affairs, or for any of the purposes set 
forth in sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 
8109, 8110, and 8122 of title 38, United States Code, including 
planning, architectural and engineering services, maintenance 
or guarantee period services costs associated with equipment 
guarantees provided under the project, services of claims 
analysts, offsite utility and storm drainage system 
construction costs, and site acquisition, where the estimated 
cost of a project is $4,000,000 or more or where funds for a 
project were made available in a previous major project 
appropriation, $142,300,000, to remain available until 
expended: Provided, That except for advance planning of 
projects funded through the advance planning fund and the 
design of projects funded through the design fund, none of 
these funds shall be used for any project which has not been 
considered and approved by the Congress in the budgetary 
process: Provided further, That funds provided in this 
appropriation for fiscal year 1999, for each approved project 
shall be obligated: (1) by the awarding of a construction 
documents contract by September 30, 1999; and (2) by the 
awarding of a construction contract by September 30, 2000: 
Provided further, That the Secretary shall promptly report in 
writing to the Committees on Appropriations any approved major 
construction project in which obligations are not incurred 
within the time limitations established above: Provided 
further, That no funds from any other account except the 
``Parking revolving fund'', may be obligated for constructing, 
altering, extending, or improving a project which was approved 
in the budget process and funded in this account until one year 
after substantial completion and beneficial occupancy by the 
Department of Veterans Affairs of the project or any part 
thereof with respect to that part only: Provided further, That 
not to exceed $125,000 may be transferred to the Pershing Hall 
Revolving Fund, codified at section 493(d) of title 36, United 
States Code: Provided further, That during fiscal year 1999, or 
in subsequent fiscal years, the ``Construction, major 
projects'' account shall be reimbursed, in the amount 
transferred, from other funds as they become part of the 
Pershing Hall Revolving Fund.


                      construction, minor projects


    For constructing, altering, extending, and improving any of 
the facilities under the jurisdiction or for the use of the 
Department of Veterans Affairs, including planning, 
architectural and engineering services, maintenance or 
guarantee period services costs associated with equipment 
guarantees provided under the project, services of claims 
analysts, offsite utility and storm drainage system 
construction costs, and site acquisition, or for any of the 
purposes set forth in sections 316, 2404, 2406, 8102, 8103, 
8106, 8108, 8109, 8110, and 8122 of title 38, United States 
Code, where the estimated cost of a project is less than 
$4,000,000, $175,000,000 to remain available until expended, 
along with unobligated balances of previous ``Construction, 
minor projects'' appropriations which are hereby made available 
for any project where the estimated cost is less than 
$4,000,000: Provided, That funds in this account shall be 
available for: (1) repairs to any of the nonmedical facilities 
under the jurisdiction or for the use of the Department which 
are necessary because of loss or damage caused by any natural 
disaster or catastrophe; and (2) temporary measures necessary 
to prevent or to minimize further loss by such causes.


                         parking revolving fund


    For the parking revolving fund as authorized by 38 U.S.C. 
8109, income from fees collected, to remain available until 
expended, which shall be available for all authorized expenses 
except operations and maintenance costs, which will be funded 
from ``Medical care''.


       grants for construction of state extended care facilities


    For grants to assist States to acquire or construct State 
nursing home and domiciliary facilities and to remodel, modify 
or alter existing hospital, nursing home and domiciliary 
facilities in State homes, for furnishing care to veterans as 
authorized by 38 U.S.C. 8131-8137, $90,000,000, to remain 
available until expended.


        grants for the construction of state veterans cemeteries


    For grants to aid States in establishing, expanding, or 
improving State veteran cemeteries as authorized by 38 U.S.C. 
2408, $10,000,000, to remain available until expended.


                       administrative provisions


                     (including transfer of funds)


    Sec. 101. Any appropriation for fiscal year 1999 for 
``Compensation and pensions'', ``Readjustment benefits'', and 
``Veterans insurance and indemnities'' may be transferred to 
any other of the mentioned appropriations.
    Sec. 102. Appropriations available to the Department of 
Veterans Affairs for fiscal year 1999 for salaries and expenses 
shall be available for services authorized by 5 U.S.C. 3109.
    Sec. 103. No appropriations in this Act for the Department 
of Veterans Affairs (except the appropriations for 
``Construction, major projects'', ``Construction, minor 
projects'', and the ``Parking revolving fund'') shall be 
available for the purchase of any site for or toward the 
construction of any new hospital or home.
    Sec. 104. No appropriations in this Act for the Department 
of Veterans Affairs shall be available for hospitalization or 
examination of any persons (except beneficiaries entitled under 
the laws bestowing such benefits to veterans, and persons 
receiving such treatment under 5 U.S.C. 7901-7904 or 42 U.S.C. 
5141-5204), unless reimbursement of cost is made to the 
``Medical care'' account at such rates as may be fixed by the 
Secretary of Veterans Affairs.
    Sec. 105. Appropriations available to the Department of 
Veterans Affairs for fiscal year 1999 for ``Compensation and 
pensions'', ``Readjustment benefits'', and ``Veterans insurance 
and indemnities'' shall be available for payment of prior year 
accrued obligations required to be recorded by law against the 
corresponding prior year accounts within the last quarter of 
fiscal year 1998.
    Sec. 106. Appropriations accounts available to the 
Department of Veterans Affairs for fiscal year 1999 shall be 
available to pay prior year obligations of corresponding prior 
year appropriations accounts resulting from title X of the 
Competitive Equality Banking Act, Public Law 100-86, except 
that if such obligations are from trust fund accounts they 
shall be payable from ``Compensation and pensions''.
    Sec. 107. Notwithstanding any other provision of law, 
during fiscal year 1999, the Secretary of Veterans Affairs 
shall, from the National Service Life Insurance Fund (38 U.S.C. 
1920), the Veterans' Special Life Insurance Fund (38 U.S.C. 
1923), and the United States Government Life Insurance Fund (38 
U.S.C. 1955), reimburse the ``General operating expenses'' 
account for the cost of administration of the insurance 
programs financed through those accounts: Provided, That 
reimbursement shall be made only from the surplus earnings 
accumulated in an insurance program in fiscal year 1999, that 
are available for dividends in that program after claims have 
been paid and actuarially determined reserves have been set 
aside: Provided further, That if the cost of administration of 
an insurance program exceeds the amount of surplus earnings 
accumulated in that program, reimbursement shall be made only 
to the extent of such surplus earnings: Provided further, That 
the Secretary shall determine the cost of administration for 
fiscal year 1999, which is properly allocable to the provision 
of each insurance program and to the provision of any total 
disability income insurance included in such insurance program.
    Sec. 108. In accordance with section 1557 of title 31, 
United States Code, the following obligated balances shall be 
exempt from subchapter IV of chapter 15 of such title and shall 
remain available for expenditure without fiscal year 
limitation: (1) funds obligated by the Department of Veterans 
Affairs for lease numbers 084B-05-94, 084B-07-94, and 084B-027-
94 from funds made available in the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1994 (Public Law 103-124) under 
the heading ``Medical care''; and (2) funds obligated by the 
Department of Veterans Affairs for lease number 084B-002-96 
from funds made available in the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1995 (Public Law 103-327) under 
the heading ``Medical care''.
    Sec. 109. (a) The Department of Veterans Affairs medical 
center in Salisbury, North Carolina, is hereby designated as 
the ``W.G. (Bill) Hefner Salisbury Department of Veterans 
Affairs Medical Center''. Any reference to such center in any 
law, regulation, map, document, record or other paper of the 
United States shall be considered to be a reference to the 
``W.G. (Bill) Hefner Salisbury Department of Veterans Affairs 
Medical Center''.
    (b) The provisions of subsection (a) are effective on the 
latter of the first day of the 106th Congress or January 3, 
1999.
    Sec. 110. Land Conveyance, Ridgecrest Children's Center, 
Alabama. (a) Conveyance.--The Secretary of Veterans Affairs may 
convey, without consideration, to the Board of Trustees of the 
University of Alabama, all right, title, and interest of the 
United States in and to the parcel of real property, including 
any improvements thereon, described in subsection (b).
    (b) Covered Parcel.--The parcel of real property to be 
conveyed under subsection (a) is the following: A parcel of 
property lying in the northeast quarter of the southwest 
quarter, section 28, township 21 south, range 9 west, 
Tuscaloosa County, Alabama, lying along and adjacent to 
Ridgecrest (Brewer's Porch) Children's Center being more 
particularly described as follows: As a point of commencement 
start at the southeast corner of the north half of the 
southwest quarter run in an easterly direction along an 
easterly projection of the north boundary of the southeast 
quarter of the southwest quarter for a distance of 888.52 feet 
to a point; thence with a deflection angle to the left of 134 
degrees 41 minutes run in a northwesterly direction for a 
distance of 1164.38 feet to an iron pipe; thence with a 
deflection angle to the left of 75 degrees 03 minutes run in a 
southwesterly direction for a distance of 37.13 feet to the 
point of beginning of this parcel of property; thence continue 
in this same southwesterly direction along the projection of 
the chainlink fence for a distance of 169.68 feet to a point; 
thence with an interior angle to the left of 63 degrees 16 
minutes run in a northerly direction for a distance of 233.70 
feet to a point; thence with an interior angle to the left of 
43 degrees 55 minutes run in a southeasterly direction for a 
distance of 218.48 feet to the point of beginning, said parcel 
having an interior angle of closure of 72 degrees 49 minutes, 
said parcel containing 0.40 acres more or less, said parcel of 
property is also subject to all rights-of-way, easements, and 
conveyances heretofore given for this parcel of property.
    (c) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.
    Sec. 111. (a) The Department of Veterans Affairs medical 
center in Cleveland, Ohio, is hereby designated as the ``Louis 
Stokes Cleveland Department of Veterans Affairs Medical 
Center''. Any reference to such center in any law, regulation, 
map, document, record or other paper of the United States shall 
be considered to be a reference to the ``Louis Stokes Cleveland 
Department of Veterans Affairs Medical Center''.
    (b) The provisions of subsection (a) are effective on the 
latter of the first day of the 106th Congress or January 3, 
1999.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Public and Indian Housing


                        housing certificate fund


             (including transfers and rescission of funds)


    For activities and assistance to prevent the involuntary 
displacement of low-income families, the elderly and the 
disabled because of the loss of affordable housing stock, 
expiration of subsidy contracts (other than contracts for which 
amounts are provided under another heading in this Act) or 
expiration of use restrictions, or other changes in housing 
assistance arrangements, and for other purposes, 
$10,326,542,030, to remain available until expended: Provided, 
That of the total amount provided under this heading, 
$9,600,000,000 shall be for assistance under the United States 
Housing Act of 1937 (42 U.S.C. 1437) for use in connection with 
expiring or terminating section 8 subsidy contracts, for 
enhanced vouchers (including renewals) as provided under the 
``Preserving Existing Housing Investment'' account in the 
Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997 
(Public Law 104-204), and contracts entered into pursuant to 
section 441 of the Stewart B. McKinney Homeless Assistance Act: 
Provided further, That in the case of enhanced vouchers 
provided under this heading, if the income of a family 
receiving assistance declines to a significant extent, the 
percentage of income paid by the family for rent shall not 
exceed the greater of 30 percent or the percentage of income 
paid at the time of mortgage prepayment: Provided further, That 
the Secretary may determine not to apply section 8(o)(6)(B) of 
the Act to housing vouchers during fiscal year 1999: Provided 
further, That of the total amount provided under this heading, 
$433,542,030 shall be for section 8 rental assistance under the 
United States Housing Act of 1937 including assistance to 
relocate residents of properties: (1) that are owned by the 
Secretary and being disposed of; or (2) that are discontinuing 
section 8 project-based assistance; for relocation and 
replacement housing for units that are demolished or disposed 
of from the public housing inventory (in addition to amounts 
that may be available for such purposes under this and other 
headings); for the conversion of section 23 projects to 
assistance under section 8; for funds to carry out the family 
unification program; and for the relocation of witnesses in 
connection with efforts to combat crime in public and assisted 
housing pursuant to a request from a law enforcement or 
prosecution agency: Provided further, That of the total amount 
made available in the preceding proviso, $40,000,000 shall be 
made available to nonelderly disabled families affected by the 
designation of a public housing development under section 7 of 
such Act, the establishment of preferences in accordance with 
section 651 of the Housing and Community Development Act of 
1992(42 U.S.C. 1361l), or the restriction of occupancy to 
elderly families in accordance with section 658 of such Act, and to the 
extent the Secretary determines that such amount is not needed to fund 
applications for such affected families, to other nonelderly disabled 
families: Provided further, That the amount made available under the 
fifth proviso under the heading ``Prevention of Resident Displacement'' 
in title II of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997, 
Public Law 104-204, shall also be made available to nonelderly disabled 
families affected by the restriction of occupancy to elderly families 
in accordance with section 658 of the Housing and Community Development 
Act of 1992: Provided further, That to the extent the Secretary 
determines that the amount made available under the fifth proviso under 
the heading ``Prevention of Resident Displacement'' in title II of the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997, Public Law 104-204, is 
not needed to fund applications for affected families described in the 
fifth proviso, or in the preceding proviso under this heading in this 
Act, the amount not needed shall be made available to other nonelderly 
disabled families: Provided further, That of the total amount provided 
under this heading, $10,000,000 shall be for Regional Opportunity 
Counseling: Provided further, That all balances, as of September 30, 
1998, remaining in the ``Prevention of Resident Displacement'' account 
shall be transferred to and merged with the amounts provided for those 
purposes under this heading.
    For tenant-based assistance under the United States Housing 
Act of 1937 to help eligible families make the transition from 
welfare to work, $283,000,000 from the total amount provided 
under this heading, to be administered by public housing 
agencies (including Indian tribes and their tribally designated 
housing entities, as defined by the Secretary of Housing and 
Urban Development), and to remain available until expended: 
Provided, That families initially selected to receive 
assistance under this paragraph: (1) shall be eligible to 
receive, shall be currently receiving, or shall have received 
within the preceding two years, assistance or services funded 
under the Temporary Assistance for Needy Families (TANF) 
program under part A of title IV of the Social Security Act or 
as part of a State's qualified State expenditure under section 
409(a)(7)(B)(i) of such Act; (2) shall be determined by the 
agency to be families for which tenant-based housing assistance 
is critical to successfully obtaining or retaining employment; 
and (3) shall not already be receiving tenant-based assistance 
under the United States Housing Act of 1937: Provided further, 
That each application shall: (1) describe the proposed program, 
which shall be developed by the public housing agency in 
consultation with the State, local or Tribal entity 
administering the TANF program and the entity, if any, 
administering the Welfare-to-Work grants allocated by the 
United States Department of Labor pursuant to section 
403(a)(5)(A) of the Social Security Act, and which shall take 
into account the particular circumstances of the community; (2) 
demonstrate that tenant-based housing assistance is critical to 
the success of assisting eligible families to obtain or retain 
employment; (3) specify the criteria for selecting among 
eligible families to receive housing assistance under this 
paragraph; (4) describe the proposed strategy for tenant 
counseling and housing search assistance and landlord outreach; 
(5) include any requests for waivers of any administrative 
requirements or any provisions of the United States Housing Act 
of 1937, with a demonstration of how approval of the waivers 
would substantially further the objective of this paragraph; 
(6) include certifications from the State, local, or Tribal 
entity administering assistance under the TANF program and from 
the entity, if any, administering the Welfare-to-Work grants 
allocated by the United States Department of Labor, that the 
entity supports the proposed program and will cooperate with 
the public housing agency that administers the housing 
assistance to assure that such assistance is coordinated with 
other welfare reform and welfare to work initiatives; however, 
if either does not respond to the public housing agency within 
a reasonable time period, its concurrence shall be assumed, and 
if either objects to the application, its concerns shall 
accompany the application to the Secretary, who shall take them 
into account in this funding decision; and (7) include such 
other information as the Secretary may require and meet such 
other requirements as the Secretary may establish: Provided 
further, That the Secretary, after consultation with the 
Secretary of Health and Human Services and the Secretary of 
Labor, shall select public housing agencies to receive 
assistance under this paragraph on a competitive basis, taking 
into account the need for and quality of the proposed program 
(including innovative approaches), the extent to which the 
assistance will be coordinated with welfare reform and welfare 
to work initiatives, the extent to which the application 
demonstrates that tenant-based assistance is critical to the 
success of assisting eligible families to obtain or retain 
employment; and other appropriate criteria established by the 
Secretary: Provided further, That the Secretary may use up to 
one percent of the amount available under this 
paragraph,directly or indirectly, to conduct detailed evaluations of 
the effect of providing assistance under this paragraph: Provided 
further, That of the amount made available under this paragraph, at 
least $4,000,000 each shall be made available for local self-
sufficiency/welfare-to-work initiatives in San Bernardino County, 
California; Cleveland, Ohio; Kansas City, Missouri; Charlotte, North 
Carolina; Miami/Dade County, Florida; Prince Georges County, Maryland; 
New York City, New York; and Anchorage, Alaska.
    From the sources and in the order hereinafter specified, 
$1,650,000,000 is rescinded: Provided, That the first source 
shall be amounts that are available or may be recaptured from 
project-based contracts for section 8 assistance that expired 
or were terminated during fiscal year 1999 or any prior year: 
Provided further, That after all amounts that are available or 
may be recaptured from the first source have been exhausted, 
the second source shall be unobligated amounts from amendments 
to contracts for project-based section 8 assistance, other than 
contracts for projects developed under section 202 of the 
Housing Act of 1959, other than amounts described as the fourth 
source, in the fourth proviso in this paragraph, that are 
carried over into 1999: Provided further, That after all 
amounts that are available from the second source are 
exhausted, the third source shall be amounts recaptured from 
section 8 reserves in the section 8 moderate rehabilitation 
program: Provided further, That after all amounts that are 
available or may be recaptured from the third source have been 
exhausted, the fourth source shall be all unobligated amounts 
for project-based assistance that are earmarked under the third 
proviso under this heading in Public Law 105-65, 111 Stat. 1351 
(approved October 27, 1997): Provided further, That any amounts 
that are available or recaptured in connection with the first 
or third provisos of this paragraph that are in the Annual 
Contributions for Assisted Housing account, and are required to 
be rescinded by this paragraph, shall be rescinded from the 
Annual Contributions for Assisted Housing account.


                      public housing capital fund


                     (including transfers of funds)


    For the Public Housing Capital Fund Program for 
modernization of existing public housing projects as authorized 
under section 14 of the United States Housing Act of 1937, as 
amended (42 U.S.C. 1437), $3,000,000,000, to remain available 
until expended: Provided, That of the total amount, up to 
$100,000,000 shall be for carrying out activities under section 
6(j) of such Act and technical assistance for the inspection of 
public housing units, contract expertise, and training and 
technical assistance directly or indirectly, under grants, 
contracts, or cooperative agreements, to assist in the 
oversight and management of public housing (whether or not the 
housing is being modernized with assistance under this proviso) 
or tenant-based assistance, including, but not limited to, an 
annual resident survey, data collection and analysis, training 
and technical assistance by or to officials and employees of 
the Department and of public housing agencies and to residents 
in connection with the public housing programs and for lease 
adjustments to section 23 projects: Provided further, That of 
the amount available under this heading, up to $5,000,000 shall 
be for the Tenant Opportunity Program: Provided further, That 
all balances, as of September 30, 1998, of funds heretofore 
provided for section 673 public housing service coordinators 
shall be transferred to and merged with amounts made available 
under this heading.


                     public housing operating fund


    For payments to public housing agencies for operating 
subsidies for low-income housing projects as authorized by 
section 9 of the United States Housing Act of1937, as amended 
(42 U.S.C. 1437g), $2,818,000,000, to remain available until expended.


             drug elimination grants for low-income housing


                     (including transfer of funds)


    For grants to public housing agencies and Indian tribes and 
their tribally designated housing entities for use in 
eliminating crime in public housing projects authorized by 42 
U.S.C. 11901-11908, for grants for federally assisted low-
income housing authorized by 42 U.S.C. 11909, and for drug 
information clearinghouse services authorized by 42 U.S.C. 
11921-11925, $310,000,000, to remain available until expended, 
of which $10,000,000 shall be for grants, technical assistance, 
contracts and other assistance, training, and program 
assessment and execution for or on behalf of public housing 
agencies, resident organizations, and Indian tribes and their 
tribally designated housing entities (including the cost of 
necessary travel for participants in such training), 
$10,000,000 shall be used in connection with efforts to combat 
violent crime in public and assisted housing under the 
Operation Safe Home Program administered by the Inspector 
General of the Department of Housing and Urban Development, 
$10,000,000 shall be provided to the Office of Inspector 
General for Operation Safe Home; and $20,000,000 shall be 
available for a program named the New Approach Anti-Drug 
program which will provide competitive grants to entities 
managing or operating public housing developments, federally 
assisted multifamily housing developments, or other multifamily 
housing developments for low-income families supported by non-
Federal governmental entities or similar housing developments 
supported by nonprofit private sources in order to provide or 
augment security (including personnel costs), to assist in the 
investigation and/or prosecution of drug related criminal 
activity in and around such developments, and to provide 
assistance for the development of capital improvements at such 
developments directly relating to the security of such 
developments: Provided, That grants for the New Approach Anti-
Drug program shall be made on a competitive basis as specified 
in section 102 of the Department of Housing and Urban 
Development Reform Act of 1989: Provided further, That the term 
``drug-related crime'', as defined in 42 U.S.C. 11905(2), shall 
also include other types of crime as determined by the 
Secretary: Provided further, That, notwithstanding section 
5130(c) of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 
11909(c)), the Secretary may determine not to use any such 
funds to provide public housing youth sports grants.


     revitalization of severely distressed public housing (hope vi)


    For grants to public housing agencies for assisting in the 
demolition of obsolete public housing projects or portions 
thereof, the revitalization (where appropriate) of sites 
(including remaining public housing units) on which such 
projects are located, replacement housing which will avoid or 
lessen concentrations of very low-income families, and tenant-
based assistance in accordance with section 8 of the United 
States Housing Act of 1937; and for providing replacement 
housing and assisting tenants displaced by the demolition 
(including appropriate homeownership down payment assistance 
for displaced tenants), $625,000,000, to remain available until 
expended, of which the Secretary may use up to $15,000,000 for 
technical assistance and contract expertise, to be provided 
directly or indirectly by grants, contracts or cooperative 
agreements, including training and cost of necessary travel for 
participants in such training, by or to officials and employees 
of the Department and of public housing agencies and to 
residents: Provided, That no funds appropriated under this 
heading shall be used for any purpose that is not provided for 
herein, in the United States Housing Act of 1937, in the 
Appropriations Acts for the Departmentsof Veterans Affairs and 
Housing and Urban Development, and Independent Agencies, for the fiscal 
years 1993, 1994, 1995, 1997, and 1998, and the Omnibus Consolidated 
Rescissions and Appropriations Act of 1996: Provided further, That for 
purposes of environmental review pursuant to the National Environmental 
Policy Act of 1969, a grant under this heading or under prior 
appropriations Acts for use for the purposes under this heading shall 
be treated as assistance under title I of the United States Housing Act 
of 1937 and shall be subject to the regulations issued by the Secretary 
to implement section 26 of such Act: Provided further, That none of 
such funds shall be used directly or indirectly by granting competitive 
advantage in awards to settle litigation or pay judgments, unless 
expressly permitted herein.


                  native american housing block grants


                     (including transfers of funds)


    For the Native American Housing Block Grants program, as 
authorized under title I of the Native American Housing 
Assistance and Self-Determination Act of 1996 (Public Law 104-
330), $620,000,000, to remain available until expended, of 
which $6,000,000 shall be used to support the inspection of 
Indian housing units, contract expertise, training, and 
technical assistance in the oversight and management of Indian 
housing and tenant-based assistance, including up to $200,000 
for related travel: Provided, That of the amount provided under 
this heading, $6,000,000 shall be made available for the cost 
of guaranteed notes and other obligations, as authorized by 
title VI of the Native American Housing Assistance and Self-
Determination Act of 1996: Provided, further, That such costs, 
including the costs of modifying such notes and other 
obligations, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided, 
further, That these funds are available to subsidize the total 
principal amount of any notes and other obligations, any part 
of which is to be guaranteed, not to exceed $54,600,000.
    In addition, for administrative expenses to carry out the 
guaranteed loan program, up to $200,000, which shall be 
transferred to and merged with the appropriation for 
departmental salaries and expenses, to be used only for the 
administrative costs of these guarantees: Provided, That the 
funds made available in the first proviso in the preceding 
paragraph are for a demonstration on ways to enhance economic 
growth, to increase access to private capital, and to encourage 
the investment and participation of traditional financial 
institutions in tribal and other Native American areas.


           indian housing loan guarantee fund program account


                     (including transfer of funds)


    For the cost of guaranteed loans, as authorized by section 
184 of the Housing and Community Development Act of 1992 (106 
Stat. 3739), $6,000,000, to remain available until expended: 
Provided, That such costs, including the costs of modifying 
such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, 
That these funds are available to subsidize total loan 
principal, any part of which is to be guaranteed, not to exceed 
$68,881,000.
    In addition, for administrative expenses to carry out the 
guaranteed loan program, up to $400,000, which shall be 
transferred to and merged with the appropriation for 
departmental salaries and expenses, to be used only for the 
administrative costs of these guarantees.


                 rural housing and economic development


                     (including transfer of funds)


    For an Office of Rural Housing and Economic Development to 
be established in the Department of Housing and Urban 
Development, $25,000,000, to remain available until expended: 
Provided, That of the amount under this heading, $4,000,000 
shall be used to develop capacity at the State and local level 
for developing rural housing and for economic development, of 
which $1,000,000 shall be used to develop a clearinghouse of 
ideas for innovative strategies for rural housing and economic 
development and revitalization and of which $3,000,000 shall be 
awarded by June 1, 1999 directly to local rural nonprofits, 
community development corporations and Indian tribes to support 
capacity building and technical assistance: Provided further, 
That of the amount under this heading, $21,000,000 shall be 
awarded by June 1, 1999 to Indian tribes, State housing finance 
agencies, State community and/or economic development agencies, 
local rural nonprofits and community development corporations 
to support innovative housing and economic development 
activities in rural areas, of which $5,000,000 shall be awarded 
as seed support for Indian tribes, nonprofits and community 
development corporations that are located in areas that have 
limited capacity for the development of rural housing and for 
economic development: Provided further, That all grants shall 
be awarded on a competitive basis as specified in section 102 
of the HUD Reform Act: Provided further, That all funds 
unobligated as of October 1, 1998 under the fifth paragraph of 
the Community Development Block Grants account in the 
Department of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriation Act, 1998 
(Public Law 105-65; October 27, 1997) shall be transferred to 
this account to be awarded to Indian tribes, state housing 
finance agencies, state community and/or economic development 
agencies, local rural nonprofits and community development 
corporations for activities under this heading with any 
outstanding earmarks for a state to be awarded to that state's 
housing finance agency.

                   Community Planning and Development


              housing opportunities for persons with aids


    For carrying out the Housing Opportunities for Persons with 
AIDS program, as authorized by the AIDS Housing Opportunity Act 
(42 U.S.C. 12901), $215,000,000, to remain available until 
expended: Provided, That the Secretary may use up to 1 percent 
of the funds under this heading for technical assistance: 
Provided further, That within 30 days of the close of fiscal 
year 1999, the Secretary shall submit a report to the Congress 
summarizing all technical assistance provided during the fiscal 
year.


                   community development block grants


                     (including transfer of funds)


    For grants to States and units of general local government 
and for related expenses, not otherwise provided for, to carry 
out a community development grants program as authorized by 
title I of the Housing and Community Development Act of 1974, 
as amended (the ``Act'' herein) (42 U.S.C. 5301), 
$4,750,000,000, to remain available until September 30, 2001: 
Provided, That $67,000,000 shall be for grants to Indian tribes 
notwithstanding section 106(a)(1) of such Act, $3,000,000 shall 
be available as a grant to the Housing Assistance Council, 
$3,000,000 shall be available for the Organizing Committee for 
the 1999 Special Olympics Summer Games to be used in support of 
related activities in the Triangle Area of North Carolina, 
$1,800,000 shall be available as a grant to the National 
American Indian Housing Council, $50,000,000 shall be for 
grants pursuant to section 107 of the Act: Provided further, 
That all funding decisions under section 107 except as 
specified herein shall be subject to a reprogramming request 
unless otherwise specified in accordance with the terms and 
conditions specified in the joint explanatory statement of the 
committee of conference accompanying this Act (H.R. 4194): 
Provided further, That $27,500,000 shall be for grants pursuant 
to the Self Help Housing Opportunity program, subject to 
authorization of which $7,500,000 shall be for capacity 
building efforts: Provided further, That not to exceed 20 
percent of any grant made with funds appropriated herein (other 
than a grant made available in this paragraph to the Housing 
Assistance Council or the National American Indian Housing 
Council, or a grant using funds under section 107(b)(3) of the 
Housing and Community Development Act of 1974, as amended) 
shall be expended for ``Planning and Management Development'' 
and ``Administration'' as defined in regulations promulgated by 
the Department.
    Of the amount made available under this heading, 
$15,000,000 shall be made available for ``Capacity Building for 
Community Development and Affordable Housing,'' for LISC and 
the Enterprise Foundation for activities as authorized by 
section 4 of the HUD Demonstration Act of 1993 (Public Law 103-
120), as in effect immediately before June 12, 1997, with not 
less than $5,000,000 of the funding to be used in rural areas, 
including tribal areas.
    Of the amount made available under this heading, 
$12,000,000 is for the City of Oklahoma City, Oklahoma, for a 
revolving loan pool that shall be subject to the following 
requirements and conditions: (1) amounts in the pool shall be 
available only for the purposes of making loans to carry out 
economic development activities that primarily benefit the area 
in Oklahoma City bounded on the south by Robert S. Kerr Avenue, 
on the north by North 13th Street, on the east by Oklahoma 
Avenue, and on the west by Shartel Avenue, and covering costs 
involved in administering the loan pool; (2) amounts provided 
under this paragraph shall be available for use from the loan 
pool only to the extent that the amounts contributed to the 
loan pool (or committed to be contributed) from non-Federal 
sources equal or exceed two times the amounts provided under 
this paragraph; (3) any repayments of principal and interest 
from loans made by the pool shall be deposited in the pool and 
available for use for loans in accordance with this paragraph; 
(4) amounts in the pool may not be used to provide loans to any 
agency or entity of the Federal Government or any State 
government or unit of general local government; (5) amounts 
provided under this paragraph shall be available for use from 
the loan pool only if the City of Oklahoma City, Oklahoma 
agrees (to the satisfaction of the Secretary of Housing and 
Urban Development) to deposit in the pool (for use for loans in 
accordance with this paragraph) the net proceeds from any 
amounts that are repaid to the City under loans made by the 
City using amounts provided under this same heading under 
chapter III of title III of Public Law 104-19 (109 Stat. 253).
    Of the amount provided under this heading, the Secretary of 
Housing and Urban Development may use up to $55,000,000 for a 
public and assisted housing self-sufficiency program, of which 
up to $5,000,000 may be used for the Moving to Work 
Demonstration, and at least $20,000,000 shall be used for 
grants for service coordinators and congregate services for the 
elderly and disabled: Provided, That for self-sufficiency 
activities, the Secretary may make grants to public housing 
agencies (including Indian tribes and their tribally designated 
housing entities), nonprofit corporations, and other 
appropriate entities for a supportive services program to 
assist residents of public and assisted housing, former 
residents of such housing receiving tenant-based assistance 
under section 8 of such Act (42 U.S.C. 1437f), and other low-
income families and individuals: Provided further, That the 
program shall provide supportive services, principally for the 
benefit of public housing residents, to the elderly and the 
disabled, and to families with children where the head of 
household would benefit from the receipt of supportive services 
and is working, seeking work, or is preparing for work by 
participating in job training or educational programs: Provided 
further, That the supportive services may include congregate 
services for the elderly and disabled, service coordinators, 
and coordinated education, training, and other supportive 
services, including case management skills training, job search 
assistance, assistance related to retaining employment, 
vocational and entrepreneurship development and support 
programs, such as transportation, and child care: Provided 
further, That the Secretary shall require applications to 
demonstrate firm commitments of funding or services from other 
sources: Provided further, That the Secretary shall select 
public and Indian housing agencies to receive assistance under 
this heading on a competitive basis, taking into account the 
quality of the proposed program, including any innovative 
approaches, the extent of the proposed coordination of 
supportive services, the extent of commitments of funding or 
services from other sources, the extent to which the proposed 
program includes reasonably achievable, quantifiable goals for 
measuring performance under the program over a three-year 
period, the extent of success an agency has had in carrying out 
other comparable initiatives, and other appropriate criteria 
established by the Secretary (except that this proviso shall 
not apply to renewal of grants for service coordinators and 
congregate services for the elderly and disabled).
    Of the amount made available under this heading, 
notwithstanding any other provision of law, $42,500,000 shall 
be available for YouthBuild program activities authorized by 
subtitle D of title IV of the Cranston-Gonzalez National 
Affordable Housing Act, as amended, and such activities shall 
be an eligible activity with respect to any funds made 
available under this heading: Provided, That local YouthBuild 
programs that demonstrate an ability to leverage private and 
nonprofit funding shall be given a priority for YouthBuild 
funding: Provided further, That up to $2,500,000 may be used 
for capacity buildings efforts.
    Of the amount made available under this heading, 
$225,000,000 shall be available for the Economic Development 
Initiative (EDI) to finance a variety of efforts, including 
$190,000,000 for making grants for targeted economic 
investments in accordance with the terms and conditions 
specified for such grants in the joint explanatory statement of 
the committee of conference accompanying this Act.
    Of the amount made available under this heading, 
$25,000,000 shall be available for neighborhood initiatives 
that are utilized to improve the conditions of distressed and 
blighted areas and neighborhoods, and to determine whether 
housing benefits can be integrated more effectively with 
welfare reform initiatives.
    For the cost of guaranteed loans, $29,000,000, as 
authorized by section 108 of the Housing and Community 
Development Act of 1974: Provided, That such costs, including 
the cost of modifying such loans, shall be as defined in 
section 502 of the Congressional Budget Act of 1974, as 
amended: Provided further, That these funds are available to 
subsidize total loan principal, any part of which is to be 
guaranteed, not to exceed $1,261,000,000, notwithstanding any 
aggregate limitation on outstanding obligations guaranteed in 
section 108(k) of the Housing and Community Development Act of 
1974: Provided further, That in addition, for administrative 
expenses to carry out the guaranteed loan program, $1,000,000, 
which shall be transferred to and merged with the appropriation 
for departmental salaries and expenses.
    For any fiscal year, of the amounts made available as 
emergency funds under the heading ``Community Development Block 
Grants Fund'' and notwithstanding any other provision of law, 
not more than $250,000 may be used for the non-Federal cost-
share of any project funded by the Secretary of the Army 
through the Corps of Engineers.

                       brownfields redevelopment

    For Economic Development Grants, as authorized by section 
108(q) of the Housing and Community Development Act of 1974, as 
amended, for Brownfields redevelopment projects, $25,000,000, 
to remain available until expended: Provided, That the 
Secretary of Housing and Urban Development shall make these 
grants available on a competitive basis as specified in section 
102 of the Department of Housing and Urban Development Reform 
Act of 1989.


                  home investment partnerships program


    For the HOME investment partnerships program, as authorized 
under title II of the Cranston-Gonzalez National Affordable 
Housing Act (Public Law 101-625), as amended, $1,600,000,000, 
to remain available until expended: Provided, That up to 
$7,000,000 of these funds shall be available for the 
development and operation of integrated community development 
management information systems: Provided further, That up to 
$17,500,000 of these funds shall be available for Housing 
Counseling under section 106 of the Housing and Urban 
Development Act of 1968.


                       homeless assistance grants


    For the emergency shelter grants program (as authorized 
under subtitle B of title IV of the Stewart B. McKinney 
Homeless Assistance Act, as amended); the supportive housing 
program (as authorized under subtitle C of title IV of such 
Act); the section 8 moderate rehabilitation single room 
occupancy program (as authorized under the United States 
Housing Act of 1937, as amended) to assist homeless individuals 
pursuant to section 441 of the Stewart B. McKinney Homeless 
Assistance Act; and the shelter plus care program (as 
authorized under subtitle F of title IV of such Act), 
$975,000,000, to remain available until expended: Provided, 
That not less than 30 percent of these funds shall be used for 
permanent housing, and all funding for services must be matched 
by 25 percent in funding by each grantee: Provided further, 
That the Secretary of Housing and Urban Development shall 
conduct a review of any balances of amounts provided under this 
heading in this or any previous appropriations Act that have 
been obligated but remain unexpended and shall deobligate any 
such amounts that the Secretary determines were obligated for 
contracts that are unlikely to be performed and award such 
amounts during this fiscal year: Provided further, That up to 1 
percent of the funds appropriated under this heading may be 
used for technical assistance and tracking systems needed to 
carry out the directives provided in House Report 105-610.

                            Housing Programs


                    housing for special populations


    For assistance for the purchase, construction, acquisition, 
or development of additional public and subsidized housing 
units for low income families not otherwise provided for, 
$854,000,000, to remain available until expended: Provided, 
That of the total amount provided under this heading, 
$660,000,000 shall be for capital advances, including 
amendments to capital advance contracts, for housing for the 
elderly, as authorized by section 202 of the Housing Act of 
1959, as amended, and for project rental assistance, and 
amendments to contracts for project rental assistance, for the 
elderly under section 202(c)(2) of the Housing Act of 1959, and 
for supportive services associated with the housing; and 
$194,000,000 shall be for capital advances, including 
amendments to capital advance contracts, for supportive housing 
for persons with disabilities, as authorized by section 811 of 
the Cranston-Gonzalez National Affordable Housing Act, for 
project rental assistance, for amendments to contracts for 
project rental assistance, and supportive services associated 
with the housing for persons with disabilities as authorized by 
section 811 of such Act: Provided further, That the Secretary 
may designate up to 25 percent of the amounts earmarked under 
this paragraph for section 811 of such Act for tenant-based 
assistance, as authorized under that section, including such 
authority as may be waived under the next proviso, which 
assistance is five years in duration: Provided further, That 
the Secretary may waive any provision of section 202 of the 
Housing Act of 1959 and section 811 of the Cranston-Gonzalez 
National Affordable Housing Act (including the provisions 
governing the terms and conditions of project rental assistance 
and tenant-based assistance) that the Secretary determines is 
not necessary to achieve the objectives of these programs, or 
that otherwise impedes the ability to develop, operate or 
administer projects assisted under these programs, and may make 
provision for alternative conditions or terms where 
appropriate.


                         flexible subsidy fund


                          (transfer of funds)


    From the Rental Housing Assistance Fund, all uncommitted 
balances of excess rental charges as of September 30, 1998, and 
any collections made during fiscal year 1999, shall be 
transferred to the Flexible Subsidy Fund, as authorized by 
section 236(g) of the National Housing Act, as amended.

                     Federal Housing Administration


             fha--mutual mortgage insurance program account


                     (including transfers of funds)


    During fiscal year 1999, commitments to guarantee loans to 
carry out the purposes of section 203(b) of the National 
Housing Act, as amended, shall not exceed a loan principal of 
$110,000,000,000.
    During fiscal year 1999, obligations to make direct loans 
to carry out the purposes of section 204(g) of the National 
Housing Act, as amended, shall not exceed $100,000,000: 
Provided, That the foregoing amount shall be for loans to 
nonprofit and governmental entities in connection with sales of 
single family real properties owned by the Secretary and 
formerly insured under the Mutual Mortgage Insurance Fund.
    For administrative expenses necessary to carry out the 
guaranteed and direct loan program, $328,888,000, to be derived 
from the FHA-mutual mortgage insurance guaranteed loans receipt 
account, of which not to exceed $324,866,000 shall be 
transferred to the appropriation for departmental salaries and 
expenses; and of which not to exceed $4,022,000 shall be 
transferred to the appropriation for the Office of Inspector 
General.


             fha--general and special risk program account


                     (including transfers of funds)


    For the cost of guaranteed loans, as authorized by sections 
238 and 519 of the National Housing Act (12 U.S.C. 1715z-3 and 
1735c), including the cost of loan guarantee modifications (as 
that term is defined in section 502 of the Congressional Budget 
Act of 1974, as amended), $81,000,000, to remain available 
until expended: Provided, That these funds are available to 
subsidize total loan principal, any part of which is to be 
guaranteed, of up to $18,100,000,000: Provided further, That 
any amounts made available in any prior appropriations Act for 
the cost (as such term is defined in section 502 of the 
Congressional Budget Act of 1974) of guaranteed loans that are 
obligations of the funds established under section 238 or 519 
of the National Housing Act that have not been obligated or 
that are deobligated shall be available to the Secretary of 
Housing and Urban Development in connection with the making of 
such guarantees and shall remain available until expended, 
notwithstanding the expiration of any period of availability 
otherwise applicable to such amounts.
    Gross obligations for the principal amount of direct loans, 
as authorized by sections 204(g), 207(l), 238, and 519(a) of 
the National Housing Act, shall not exceed $50,000,000; of 
which not to exceed $30,000,000 shall be for bridge financing 
in connection with the sale of multifamily real properties 
owned by the Secretary and formerly insured under such Act; and 
of which not to exceed $20,000,000 shall be for loans to 
nonprofit and governmental entities in connection with the sale 
of single-family real properties owned by the Secretary and 
formerly insured under such Act.
    In addition, for administrative expenses necessary to carry 
out the guaranteed and direct loan programs, $211,455,000, of 
which $193,134,000, shall be transferred to the appropriation 
for departmental salaries and expenses; and of which 
$18,321,000 shall be transferred to the appropriation for the 
Office of Inspector General.

                Government National Mortgage Association


guarantees of mortgage-backed securities loan guarantee program account


                     (including transfer of funds)


    During fiscal year 1999, new commitments to issue 
guarantees to carry out the purposes of section 306 of the 
National Housing Act, as amended (12 U.S.C. 1721(g)), shall not 
exceed $150,000,000,000.
    For administrative expenses necessary to carry out the 
guaranteed mortgage-backed securities program, $9,383,000, to 
be derived from the GNMA-guarantees of mortgage-backed 
securities guaranteed loan receipt account, of which not to 
exceed $9,383,000 shall be transferred to the appropriation for 
departmental salaries and expenses.

                    Policy Development and Research


                        research and technology


    For contracts, grants, and necessary expenses of programs 
of research and studies relating to housing and urban problems, 
not otherwise provided for, as authorized by title V of the 
Housing and Urban Development Act of 1970, as amended (12 
U.S.C. 1701z-1 et seq.), including carrying out the functions 
of the Secretary under section 1(a)(1)(i) of Reorganization 
Plan No. 2 of 1968, $47,500,000, to remain available until 
September 30, 2000.

                   Fair Housing and Equal Opportunity


                        fair housing activities


    For contracts, grants, and other assistance, not otherwise 
provided for, as authorized by title VIII of the Civil Rights 
Act of 1968, as amended by the Fair Housing Amendments Act of 
1988, and section 561 of the Housing and Community Development 
Act of 1987, as amended, $40,000,000, to remain available until 
September 30, 2000, of which $23,500,000 shall be to carry out 
activities pursuant to such section 561: Provided, That no 
funds made available under this heading shall be used to lobby 
the executive or legislative branches of the Federal Government 
in connection with a specific contract, grant or loan.

                     Office of Lead Hazard Control


                         lead hazard reduction


    For the Lead Hazard Reduction Program, as authorized by 
sections 1011 and 1053 of the Residential Lead-Based Hazard 
Reduction Act of 1992, $80,000,000 to remain available until 
expended, of which $2,500,000 shall be for CLEARCorps and 
$10,000,000 shall be for a Healthy Homes Initiative, which 
shall be a program pursuant to sections 501 and 502 of the 
Housing and Urban Development Act of 1970 that shall include 
research, studies, testing, and demonstration efforts, 
including education and outreach concerning lead-based paint 
poisoning and other housing-related environmental diseases and 
hazards.

                     Management and Administration


                         salaries and expenses


                     (including transfer of funds)


    For necessary administrative and non-administrative 
expenses of the Department of Housing and Urban Development, 
not otherwise provided for, including not to exceed $7,000 for 
official reception and representation expenses, $985,826,000, 
of which $518,000,000 shall be provided from the various funds 
of the Federal Housing Administration, $9,383,000 shall be 
provided from fundsof the Government National Mortgage 
Association, $1,000,000 shall be provided from the ``Community 
Development Grants Program'' account, $200,000 shall be provided by 
transfer from the ``Title VI Indian Federal Guarantees Program'' 
account, and $400,000 shall be provided by transfer from the ``Indian 
Housing Loan Guarantee Fund Program'' account: Provided, That the 
Department is prohibited from employing more than 77 schedule C and 20 
noncareer Senior Executive Service employees.


                      office of inspector general


                     (including transfer of funds)


    For necessary expenses of the Office of Inspector General 
in carrying out the Inspector General Act of 1978, as amended, 
$81,910,000, of which $22,343,000 shall be provided from the 
various funds of the Federal Housing Administration and 
$10,000,000 shall be provided from the amount earmarked for 
Operation Safe Home in the ``Drug Elimination Grants for Low-
Income Housing'' account: Provided, That the Inspector General 
shall have independent authority over all personnel issues 
within the Office of Inspector General.

             Office of Federal Housing Enterprise Oversight


                         salaries and expenses


                     (including transfer of funds)


    For carrying out the Federal Housing Enterprise Financial 
Safety and Soundness Act of 1992, $16,000,000, to remain 
available until expended, to be derived from the Federal 
Housing Enterprise Oversight Fund: Provided, That not to exceed 
such amount shall be available from the General Fund of the 
Treasury to the extent necessary to incur obligations and make 
expenditures pending the receipt of collections to the Fund: 
Provided further, That the General Fund amount shall be reduced 
as collections are received during the fiscal year so as to 
result in a final appropriation from the General Fund estimated 
at not more than $0.


                       administrative provisions


    public and assisted housing rents, preferences, and flexibility


    Sec. 201. Section 201(a)(2) of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 (42 U.S.C. 1437l note), is 
amended to read as follows:
            ``(2) Applicability.--Section 14(q) of the United 
        States Housing Act of 1937 shall be effective only with 
        respect to assistance provided from funds made 
        available for fiscal year 1999 or any preceding fiscal 
        year, except that the authority in the first sentence 
        of section 14(q)(1) to use up to 10 percent of the 
        allocation of certain funds for any operating subsidy 
        purpose shall not apply to amounts made available for 
        fiscal years 1998 and 1999.''.


                      gse default loss protection


    Sec. 202. (a) Section 305(a)(2) of the Federal Home Loan 
Corporation Act is amended in the first sentence by--
            (1) striking ``or'' at the end of clause (B);
            (2) striking the period at the end of the first 
        sentence and inserting in lieu thereof: ``; or (D) the 
        mortgage is subject to default loss protection that the 
        Corporation determines is financially equal or 
        superior, on an individual or pooled basis, to the 
        protection provided by clause (C) of this sentence: 
        Provided, That if the Director of the Office of Federal 
        Housing Enterprise Oversight subsequently finds that 
        such default loss protection determined by the 
        Corporation does not provide such equal or superior 
        protection, the Corporation shall provide such 
        additional default loss protection for such mortgage, 
        as approved by the Director of the Office of Federal 
        Housing Enterprise Oversight, necessary to provide such 
        equal or superior protection.'';
    (b) Section 1313(b) of the Federal Housing Enterprises 
Financial Housing Safety and Soundness Act of 1992 is amended 
by renumbering paragraphs ``(9)'', ``(10)'', and ``(11)'', as 
``(10)'', ``(11)'', and ``(12)'', respectively, and inserting 
the following new paragraph ``(9)'':
            ``(9) default loss protection levels under section 
        305(a)(2)(D) of the Federal Home Loan Mortgage 
        Corporation Act;''.


                      financing adjustment factors


    Sec. 203. Fifty percent of the amounts of budget authority, 
or in lieu thereof 50 percent of the cash amounts associated 
with such budget authority, that are recaptured from projects 
described in section 1012(a) of the Stewart B. McKinney 
Homeless Assistance Amendments Act of 1988 (Public Law 100-628, 
102 Stat. 3224, 3268) shall be rescinded, or in the case of 
cash, shall be remitted to the Treasury, and such amounts of 
budget authority or cash recaptured and not rescinded or 
remitted to the Treasury shall be used by State housing finance 
agencies or local governments or local housing agencies with 
projects approved by the Secretary of Housing and Urban 
Development for which settlement occurred after January 1, 
1992, in accordance with such section. Notwithstanding the 
previous sentence, the Secretary may award up to 15 percent of 
the budget authority or cash recaptured and not rescinded or 
remitted to the Treasury to provide project owners with 
incentives to refinance their project at a lower interest rate.


                      fair housing and free speech


    Sec. 204. None of the amounts made available under this Act 
may be used during fiscal year 1999 to investigate or prosecute 
under the Fair Housing Act any otherwise lawful activity 
engaged in by one or more persons, including the filing or 
maintaining of a nonfrivolous legal action, that is engaged in 
solely for the purpose of achieving or preventing action by a 
government official or entity, or a court of competent 
jurisdiction.


                 brownfields as eligible cdbg activity


    Sec. 205. For fiscal years 1998, 1999, and all fiscal years 
thereafter, States and entitlement communities may use funds 
allocated under the community development block grants program 
under title I of the Housing and Community Development Act of 
1974 for environmental cleanup and economic development 
activities related to Brownfields projects in conjunction with 
the appropriate environmental regulatory agencies, as if such 
activities were eligible under section 105(a) of such Act.


                     enhanced disposition authority


    Sec. 206. Section 204 of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1997, is amended by striking 
``fiscal years 1997 and 1998'' and inserting ``fiscal years 
1997, 1998, and 1999''.


           housing opportunities for persons with aids grants


    Sec. 207. (a) Eligibility.--Notwithstanding section 
854(c)(1)(A) of the AIDS Housing Opportunity Act (42 U.S.C. 
12903(c)(1)(A)), from any amounts made available under this 
title for fiscal year 1999 that are allocated under such 
section, the Secretary of Housing and Urban Development shall 
allocate and make a grant, in the amount determined under 
subsection (b), for any State that--
            (1) received an allocation in a prior fiscal year 
        under clause (ii) of such section; and
            (2) is not otherwise eligible for an allocation for 
        fiscal year 1999 under such clause (ii) because the 
        areas in the State outside of the metropolitan 
        statistical areas that qualify under clause (i) in 
        fiscal year 1999 do not have the number of cases of 
        acquired immunodeficiency syndrome required under such 
        clause.
    (b) Amount.--The amount of the allocation and grant for any 
State described in subsection (a) shall be an amount based on 
the cumulative number of AIDS cases in the areas of that State 
that are outside of metropolitan statistical areas that qualify 
under clause (i) of such section 854(c)(1)(A) in fiscal year 
1999 in proportion to AIDS cases among cities and States that 
qualify under clauses (i) and (ii) of such section and States 
deemed eligible under subsection (a).
    (c) Environmental Review.--For purposes of environmental 
review, pursuant to the National Environmental Policy Act of 
1969 and other provisions of law that further the purposes of 
such Act, a grant under the AIDS Housing Opportunity Act (42 
U.S.C. 12901 et seq.) from amounts provided under this or prior 
Acts shall be treated as assistance for a special project that 
is subject to section 305(c) of the Multifamily Housing 
Property Disposition Reform Act of 1994 (42 U.S.C. 3547), and 
shall be subject to the regulations issued by the Secretary to 
implement such section. Where the grantee under the AIDS 
Housing Opportunity Act is a nonprofit organization and the 
activity is proposed to be carried out within the jurisdiction 
of an Indian tribe or the community of an Alaska native 
village, the role of the State or unit of general local 
government under sections 305(c)(1)-(3) of such Act may be 
carried out by the Indian tribe or Alaska native village 
instead.


                           drawdown of funds


    Sec. 208. Section 14(q)(1) of the United States Housing Act 
of 1937 (42 U.S.C. 1437l(q)(1)) is amended by inserting after 
the first sentence the following sentence: ``Such assistance 
may involve the drawdown of funds on a schedule commensurate 
with construction draws for deposit into an interest earning 
escrow account to serve as collateral or credit enhancement for 
bonds issued by a public agency for the construction or 
rehabilitation of the development.''.


 elimination of shopping incentive for voucher families who remain in 
              same unit upon initial receipt of assistance


    Sec. 209. (a) Section 8(o)(2) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(2)) is amended by inserting the 
following new sentence at the end: ``Notwithstanding the 
preceding sentence, for families being admitted to the voucher 
program who remain in the same unit or complex, where the rent 
(including the amount allowed for utilities) does not exceed 
the payment standard, the monthly assistance payment for any 
family shall be the amount by which such rent exceeds the 
greater of 30 percent of the family's monthly adjusted income 
or 10 percent of the family's monthly income.''.
    (b) This section shall take effect 60 days after the later 
of October 1, 1998 or the date of enactment of this Act.


              renegotiation of performance funding system


    Sec. 210. Section 9(a)(3)(A) of the United States Housing 
Act of 1937 (42 U.S.C. 1437g(a)(3)(A)) is amended--
            (1) by inserting after the third sentence the 
        following new sentence to read as follows:
``Notwithstanding the preceding sentences, the Secretary may 
revise the performance funding system in a manner that takes 
into account equity among public housing agencies and that 
includes appropriate incentives for sound management.''; and
            (2) in the last sentence, by inserting after 
        ``vacant public housing units'' the following: ``, or 
        any substantial change under the preceding sentence,''.


             fha multifamily mortgage credit demonstrations


    Sec. 211. Section 542 of the Housing and Community 
Development Act of 1992 is amended--
            (1) in subsection (b)(5) by adding before the 
        period at the end of the first sentence ``, and not 
        more than an additional 25,000 units during fiscal year 
        1999'', and
            (2) in the first sentence of subsection (c)(4) by 
        striking ``1996 and'' and inserting ``1996,'' and by 
        inserting after ``fiscal year 1997'' the following: 
        ``and not more than an additional 25,000 units during 
        fiscal year 1999''.


                       calculation of downpayment


    Sec. 212. Section 203(b)(10) of the National Housing Act is 
amended by--
            (1) striking out ``Alaska and Hawaii'' and 
        inserting in lieu thereof ``Calculation of 
        Downpayment''; and
            (2) striking out in subparagraph (A) ``originated 
        in the State of Alaska or the State of Hawaii and 
        endorsed for insurance in fiscal years 1997 and 1998,'' 
        and inserting in lieu thereof ``executed for insurance 
        in fiscal years 1998, 1999, and 2000''.


                        state cdbg idis funding


    Sec. 213. During fiscal year 1999, from amounts received by 
a State under section 106(d)(1) of the Housing and Community 
Development Act of 1974 for distribution in nonentitlement 
areas, the State may deduct an amount, not to exceed the 
greater of 0.25 percent of the amount so received or $50,000, 
for implementation of the integrated disbursement and 
information system established by the Secretary, in addition to 
any amounts used for this purpose from amounts retained by the 
State for administrative expenses under section 106(d)(3)(A).


                        nursing home lease terms


    Sec. 214. (a) Technical Correction.--Section 216 of the 
Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1998, 
is amended by striking out ``fifty years from the date'' and 
inserting in lieu thereof ``fifty years to run from the date''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall be construed to have taken effect on October 27, 1997.


                  technical for emergency cdbg program


    Sec. 215. For purposes of eligibility for funding under the 
heading ``Community Development Block Grants'' in the 1998 
Supplemental Appropriations and Rescissions Act (Public Law 
105-174; May 1, 1998) the term ``States'' shall be deemed to 
include ``Indian tribes'' as defined under section 102(a)(17) 
of the Housing and Community Development Act of 1974 and Guam, 
the Northern Mariana Islands, the Virgin Islands, and American 
Samoa: Provided, That amounts made available by this section 
are designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended.


           use of home funds for public housing modernization


    Sec. 216. Notwithstanding section 212(d)(5) of the 
Cranston-Gonzalez National Affordable Housing Act, amounts made 
available to the City of Bismarck, North Dakota, under subtitle 
A of title II of the Cranston-Gonzalez National Affordable 
Housing Act for fiscal years 1998, 1999, 2000, 2001 or 2002, 
may be used to carry out activities authorized under section 14 
of the United States Housing Act of 1937 (42 U.S.C. 14371) for 
the purpose of modernizing the Crescent Manor public housing 
project located at 107 East Bowen Avenue, in Bismarck, North 
Dakota, if--
            (1) the Burleigh County Housing Authority (or any 
        successor public housing agency that owns or operates 
        the Crescent Manor public housing project) has 
        obligated all other Federal assistance made available 
        to that public housing agency for that fiscal year; or
            (2) the Secretary of Housing and Urban Development 
        authorizes the use of those amounts for the purpose of 
        modernizing that public housing project, which 
        authorization may be made with respect to one or more 
        of those fiscal years.


                        cdbg and home exemption


    Sec. 217. The City of Oxnard, California may use amounts 
available to the City under title I of the Housing and 
Community Development Act of 1974 and under subtitle A of title 
II of the Cranston-Gonzalez National Affordable Housing Act to 
reimburse the city for its cost in purchasing 19.89 acres of 
land, more or less, located at the northwest corner of Lombard 
Street and Camino del Sol in the city, on the north side of the 
2100 block of Camino del Sol, for the purpose of providing 
affordable housing. The procedures set forth in sections 
104(g)(2) and (3) of the Housing and Community Development Act 
of 1974 and sections 288(b) and (c) of the Cranston-Gonzalez 
National Affordable Housing Act shall not apply to any release 
of funds for such reimbursement.


                        cdbg public services cap


    Sec. 218. Section 105(a)(8) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by 
striking ``1998'' and inserting ``1999''.


                clarification of owner's right to prepay


    Sec. 219. (a) Prepayment Right.--Notwithstanding section 
211 of the Housing and Community Development Act of 1987 or 
section 221 of the Housing and Community Development Act of 
1987 (as in effect pursuant to section 604(c) of the Cranston-
Gonzalez National Affordable Housing Act), subject to 
subsection (b), with respect to any project that is eligible 
low-income housing (as that term is defined in section 229 of 
the Housing and Community Development Act of 1987)--
            (1) the owner of the project may prepay, and the 
        mortgagee may accept prepayment of, the mortgage on the 
        project, and
            (2) the owner may request voluntary termination of 
        a mortgage insurance contract with respect to such 
        project and the contract may be terminated 
        notwithstanding any requirements under sections 229 and 
        250 of the National Housing Act.
    (b) Conditions.--Any prepayment of a mortgage or 
termination of an insurance contract authorized under 
subsection (a) may be made--
            (1) only to the extent that such prepayment or 
        termination is consistent with the terms and conditions 
        of the mortgage on or mortgage insurance contract for 
        the project;
            (2) only if owner of the project involved agrees 
        not to increase the rent charges for any dwelling unit 
        in the project during the 60-day period beginning upon 
        such prepayment or termination; and
            (3) only if the owner of the project provides 
        notice of intent to prepay or terminate, in such form 
        as the Secretary of Housing and Urban Development may 
        prescribe, to each tenant of the housing, the 
        Secretary, and the chief executive officer of the 
        appropriate State or local government for the 
        jurisdiction within which the housing is located, not 
        less than 150 days, but not more than 270 days, before 
        such prepayment or termination, except that such 
        requirement shall not apply to a prepayment or 
        termination that--
                    (A) occurs during the 150-day period 
                immediately following the date of enactment of 
                this Act;
                    (B) is necessary to effect conversion to 
                ownership by a priority purchaser (as defined 
                in section 231(a) of the Low-Income Housing 
                Preservation and Resident Ownership Act of 1990 
                (12 U.S.C. 4120(a)), or
                    (C) will otherwise ensure that the project 
                will continue to operate, at least until the 
                maturity date of the loan or mortgage, in a 
                manner that will provide rental housing on 
                terms at least as advantageous to existing and 
                future tenants as the terms required by the 
                program under which the loan or mortgage was 
                made or insured prior to the proposed 
                prepayment or termination.


            public and assisted housing drug elimination act


    Sec. 220. The Public and Assisted Housing Drug Elimination 
Act of 1990 is amended--
            (1) in section 5123, by inserting ``Indian tribes'' 
        before ``and private'';
            (2) in section 5124(a)(7), by inserting ``, an 
        Indian tribe,'' before ``or tribally designated'';
            (3) in section 5125, by inserting ``an Indian 
        tribe'' before ``a tribally designated''; and
            (4) in section 5126, by adding at the end the 
        following new paragraph:
            ``(6) Indian tribe.--The term ``Indian tribe'' has 
        the meaning given the term in section 4(12) of the 
        Native American Housing Assistance and Self 
        Determination Act of 1996, 25 U.S.C. 4103(12).''.


                     multifamily housing institute


    Sec. 221. Notwithstanding any other provision of law, the 
Secretary may, from time to time, as determined necessary to 
assist the Department in managing its multifamily assets 
including analyzing, tracking and evaluating its portfolio of 
FHA-insured and other mortgages and properties and assisting 
the Department in understanding and reducing the risk involved 
in its mortgage restructuring, insuring and guaranteeing 
activities, provide data to, and purchase data from, any 
nonprofit, industry supported, on-line provider of nationwide, 
multifamily housing loan and property data services.


                     multifamily mortgage auctions


    Sec. 222. Section 221(g)(4)(C) of the National Housing Act 
is amended--
            (1) in the first sentence of clause (viii), by 
        striking ``September 30, 1996'' and inserting 
        ``December 31, 2002''; and
            (2) by adding at the end the following:
                            ``(ix) The authority of the 
                        Secretary to conduct multifamily 
                        auctions under this paragraph shall be 
                        effective for any fiscal year only to 
                        the extent and in such amounts as are 
                        approved in appropriations Acts for the 
                        costs of loan guarantees (as defined in 
                        section 502 of the Congressional Budget 
                        Act of 1974), including the cost of 
                        modifying loans.''.


                           funding correction


    Sec. 223. Notwithstanding any other provision of law, of 
the $1,250,000 made available pursuant to Public Law 102-389 
for economic revitalization and infrastructure repair in 
Montpelier, Vermont, $250,000 is available for the Central 
Vermont Revolving Loan Fund administered by the Central Vermont 
Community Action Council.


                annual report on management deficiencies


    Sec. 224. (a) In General.--Section 203 of the National 
Housing Act (12 U.S.C. 1709) is amended by adding at the end 
the following:
    ``(x) Management Deficiencies Report.--
            ``(1) In general.--Not later than 60 days after the 
        date of enactment of this subsection, and annually 
        thereafter, the Secretary shall submit to Congress a 
        report on the plan of the Secretary to address each 
        material weakness, reportable condition, and 
        noncompliance with an applicable law or regulation (as 
        defined by the Director of the Office of Management and 
        Budget) identified in the most recent audited financial 
        statement of the Federal Housing Administration 
        submitted under section 3515 of title 31, United States 
        Code.
            ``(2) Contents of annual report.--Each report 
        submitted under paragraph (1) shall include--
                    ``(A) an estimate of the resources, 
                including staff, information systems, and 
                contract assistance, required to address each 
                material weakness, reportable condition, and 
                noncompliance with an applicable law or 
                regulation described in paragraph (1), and the 
                costs associated with those resources;
                    ``(B) an estimated timetable for addressing 
                each material weakness, reportable condition, 
                and noncompliance with an applicable law or 
                regulation described in paragraph (1); and
                    ``(C) the progress of the Secretary in 
                implementing the plan of the Secretary included 
                in the report submitted under paragraph (1) for 
                the preceding year, except that this 
                subparagraph does not apply to the initial 
                report submitted under paragraph (1).''.
    Sec. 225. (a) Informed Consumer Choice.--Section 203(b)(2) 
of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended 
by adding at the end the following:
            ``In conjunction with any loan insured under this 
        section, an original lender shall provide to each 
        prospective borrower a disclosure notice that provides 
        a one page analysis of mortgage products offered by 
        that lender and for which the borrower would qualify. 
        This notice shall include: (i) a generic analysis 
        comparing the note rate (and associated interest 
        payments), insurance premiums, and other costs and fees 
        that would be due over the life of the loan for a loan 
        insured by the Secretary under this subsection with the 
        note rates, insurance premiums (if applicable), and 
        other costs and fees that would be expected to be due 
        if the mortgagor obtained instead other mortgage 
        products offered by the lender and for which the 
        borrower would qualify with a similar loan-to-value 
        ratio in connection with a conventional mortgage (as 
        that term is used in section 305(a)(2) of the Federal 
        Home Loan Mortgage Corporation Act (12 U.S.C. 
        1454(a)(2)) or section 302(b)(2) of the Federal 
        National Mortgage Association Charter Act (12 U.S.C. 
        1717(b)(2)), as applicable), assuming prevailing 
        interest rates; and (ii) a statement regarding when the 
        mortgagor's requirement to pay the mortgage insurance 
        premiums for a mortgage insured under this section 
        would terminate or a statement that the requirement 
        will terminate only if the mortgage is refinanced, paid 
        off, or otherwise terminated.''.
    (b) Regulation.--The Secretary of Housing and Urban 
Development shall develop the disclosure notice under 
subsection (a) within 150 days of enactment through notice and 
comment rulemaking.
    Sec. 226. Funding of Certain Public Housing.--
Notwithstanding any other provision of law, no funds in this or 
any other Act may hereafter be used by the Secretary of Housing 
and Urban Development to determine allocations or provide 
assistance for operating subsidies or modernization for certain 
state and city funded and locally developed public housing 
units, as defined for purposes of a statutory paragraph, 
notwithstanding the deeming by statute of such units to be 
public housing units developed under the United States Housing 
Act of 1937, unless such a unit was so assisted before October 
1, 1998.


                       section 236 program reform


    Sec. 227. Section 236(g) of the National Housing Act, as 
amended by section 221(c) of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1997, is amended to read as 
follows:
    ``(g) The project owner shall, as required by the 
Secretary, accumulate, safeguard, and periodically pay the 
Secretary or such other entity as determined by the Secretary 
and upon such terms and conditions as the Secretary deems 
appropriate, all rental charges collected on a unit-by-unit 
basis in excess of the basic rental charges. Unless otherwise 
directed by the Secretary, such excess charges shall be 
credited to a reserve used by the Secretary to make additional 
assistance payments as provided in paragraph (3) of subsection 
(f). Notwithstanding any other requirements of this subsection, 
an owner of a project with a mortgage insured under this 
section, or a project previously assisted under subsection (b) 
but without a mortgage insured under this section if the 
project mortgage was insured under section 207 of this Act 
before July 30, 1998 pursuant to section 223(f) of this Act and 
assisted under subsection (b), may retain some or all of such 
excess charges for project use if authorized by the Secretary 
and upon such terms and conditions as established by the 
Secretary.''.


                    fha mortgage insurance increase


    Sec. 228. (a) Subparagraph (A) of section 203(b)(2) of the 
National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by 
striking clause (ii) and all that follows through the end of 
the subparagraph and inserting the following:
                            ``(ii) 87 percent of the dollar 
                        amount limitation determined under 
                        section 305(a)(2) of the Federal Home 
                        Loan Mortgage Corporation Act for a 
                        residence of the applicable size; 
                        except that the dollar amount 
                        limitation in effect for any area under 
                        this subparagraph may not be less than 
                        48 percent of the dollar limitation 
                        determined under section 305(a)(2) of 
                        the Federal Home Loan Mortgage 
                        Corporation Act for a residence of the 
                        applicable size; and''.
    (b) The first sentence in the matter following section 
203(b)(2)(B)(iii) of the National Housing Act (12 U.S.C. 
1709(b)(2)(B)(iii) is amended to read as follows: ``For 
purposes of the preceding sentence, the term `area' means a 
metropolitan statistical area as established by the Office of 
Management and Budget; and the median 1-family house price for 
an area shall be equal to the median 1-family house price of 
the county within the area that has the highest such median 
price.''.


                   hope vi grant for hollander ridge


    Sec. 229. If the Secretary rescinds the grant award of 
$20,000,000 made to the Housing Authority of Baltimore City for 
development efforts at Hollander Ridge in Baltimore, Maryland, 
involving funds appropriated for fiscal year 1996 under the 
heading ``Public Housing Demolition, Site Revitalization, and 
Replacement Housing Grants'', all of the rescinded grant amount 
shall be recaptured by the Secretary and added to the amounts 
otherwise available under this heading. If, after the date of 
any such recapture, the Housing Authority of Baltimore City 
applies in response to a Notice of Funding Availability issued 
by the Secretary for a grant from funds available under this 
heading (not to exceed the amount recaptured) for development 
efforts at Hollander Ridge, then the Secretary shall grant 
priority status to such application and approve the grant award 
if the application meets the terms and criteria stated in the 
Notice of Funding Availability.


                            debt forgiveness


    Sec. 230. The Secretary of Housing and Urban Development 
shall cancel the indebtedness of the Town of Hobson City, 
Alabama, relating to a public facilities loan under title II of 
the Housing Amendments of 1955, issued July 1, 1969 (Project 
No. ALA-01-PFL0139). The Town of Hobson City hereby is relieved 
of all liability to the Federal Government for the outstanding 
principal balance on such loan, for the amount of accrued 
interest on such loan, and for any other fees and charges 
payable in connection with such loan.


              consideration of homeless grant application


    Sec. 231. The Secretary shall consider without prejudice 
the application submitted August 5, 1998 by the City of Wichita 
and Sedgwick County, Kansas for assistance under the Continuum 
of Care Homeless Assistance program pursuant to the Notice at 
63 Federal Register 23988, 23999 (April 30, 1998) 
notwithstanding the August 4, 1998 due date for such 
application, notwithstanding any provision that may be to the 
contrary in section 102 of the Department of Housing and Urban 
Development Reform Act of 1989.


                       cdbg service cap for miami


    Sec. 232. Section 105(a)(8) of the Housing and Community 
Development Act of 1974 is amended by striking ``fiscal year 
1994'' and all that follows through the end of the paragraph 
and inserting the following: ``each of fiscal years 1999, 2000, 
and 2001, to the City of Miami, such city may use not more than 
25 percent in each fiscal year for activities under this 
paragraph;''.

                    TITLE III--INDEPENDENT AGENCIES

                  American Battle Monuments Commission


                         salaries and expenses


    For necessary expenses, not otherwise provided for, of the 
American Battle Monuments Commission, including the acquisition 
of land or interest in land in foreign countries; purchases and 
repair of uniforms for caretakers of national cemeteries and 
monuments outside of the United States and its territories and 
possessions; rent of office and garage space in foreign 
countries; purchase (one for replacement only) and hire of 
passenger motor vehicles; and insurance of official motor 
vehicles in foreign countries, when required by law of such 
countries, $26,431,000, to remain available until expended.

             Chemical Safety and Hazard Investigation Board


                         salaries and expenses


    For necessary expenses in carrying out activities pursuant 
to section 112(r)(6) of the Clean Air Act, including hire of 
passenger vehicles, and for services authorized by 5 U.S.C. 
3109, but at rates for individuals not to exceed the per diem 
equivalent to the maximum rate payable for senior level 
positions under 5 U.S.C. 5376, $6,500,000: Provided, That the 
Chemical Safety and Hazard Investigation Board shall have not 
more than three career Senior Executive Service positions.

                       Department of the Treasury

              Community Development Financial Institutions


              community development financial institutions


                          fund program account


    For grants, loans, and technical assistance to qualifying 
community development lenders, and administrative expenses of 
the Fund, including services authorized by 5 U.S.C. 3109, but 
at rates for individuals not to exceed the per diem rate 
equivalent to the rate for ES-3, $80,000,000, to remain 
available until September 30, 2000, of which $12,000,000 may be 
used for the cost of direct loans, and up to $1,000,000 may be 
used for administrative expenses to carry out the direct loan 
program: Provided, That the cost of direct loans, including the 
cost of modifying such loans, shall be as defined in section 
502 of the Congressional Budget Act of 1974: Provided further, 
That these funds are available to subsidize gross obligations 
for the principal amount of direct loans not to exceed 
$32,000,000: Provided further, That not more than $25,000,000 
of the funds made available under this heading may be used for 
programs and activities authorized in section 114 of the 
Community Development Banking and Financial Institutions Act of 
1994.

                   Consumer Product Safety Commission


                         salaries and expenses


    For necessary expenses of the Consumer Product Safety 
Commission, including hire of passenger motor vehicles, 
services as authorized by 5 U.S.C. 3109, but at rates for 
individuals not to exceed the per diem rate equivalent to the 
maximum rate payable under 5 U.S.C. 5376, purchase of nominal 
awards to recognize non-Federal officials' contributions to 
Commission activities, and not to exceed $500 for official 
reception and representation expenses, $47,000,000.

             Corporation for National and Community Service


                national and community service programs


                           operating expenses


                     (including transfer of funds)


    For necessary expenses for the Corporation for National and 
Community Service (referred to in the matter under this heading 
as the ``Corporation'') in carrying out programs, activities, 
and initiatives under the National and Community Service Act of 
1990 (referred to in the matter under this heading as the 
``Act'') (42 U.S.C. 12501 et seq.), $425,500,000, to remain 
available until September 30, 2000: Provided, That not more 
than $28,500,000 shall be available for administrative expenses 
authorized under section 501(a)(4) of the Act (42 U.S.C. 
12671(a)(4)) with not less than $3,000,000 targeted to 
administrative needs identified as urgent by the Corporation 
without regard to the provisions of section 501(a)(4)(B) of the 
Act: Provided further, That not more than $2,500 shall be for 
official reception and representation expenses: Provided 
further, That not more than $70,000,000, to remain available 
without fiscal year limitation, shall be transferred to the 
National Service Trust account for educational awards 
authorized under subtitle D of title I of the Act (42 U.S.C. 
12601 et seq.), of which not to exceed $5,000,000 shall be 
available for national service scholarships for high school 
students performing community service: Provided further, That 
not more than $227,000,000 of the amount provided under this 
heading shall be available for grants under the National 
Service Trust program authorized under subtitle C of title I of 
the Act (42 U.S.C. 12571 et seq.) (relating to activities 
including the AmeriCorps program), of which not more than 
$40,000,000 may be used to administer, reimburse, or support 
any national service program authorized under section 121(d)(2) 
of such Act (42 U.S.C. 12581(d)(2)): Provided further, That not 
more than $5,500,000 of the funds made available under this 
heading shall be made available for the Points of Light 
Foundation for activities authorized under title III of the Act 
(42 U.S.C. 12661 et seq.): Provided further, That no funds 
shall be available for national service programs run by Federal 
agencies authorized under section 121(b) of such Act (42 U.S.C. 
12571(b)): Provided further, That to the maximum extent 
feasible, funds appropriated under subtitle C of title I of the 
Act shall be provided in a manner that is consistent with the 
recommendations of peer review panels in order to ensure that 
priority is given to programs that demonstrate quality, 
innovation, replicability, and sustainability: Provided 
further, That not more than $18,000,000 of the funds made 
available under this heading shall be available for the 
Civilian Community Corps authorized under subtitle E of title I 
of the Act (42 U.S.C. 12611 et seq.): Provided further, That 
not more than $43,000,000 shall be available for school-based 
and community-based service-learning programs authorized under 
subtitle B of title I of the Act (42 U.S.C. 12521 et seq.): 
Provided further, That not more than $28,500,000 shall be 
available for quality and innovation activities authorized 
under subtitle H of title I of the Act (42 U.S.C. 12853 et 
seq.): Provided further, That not more than $5,000,000 shall be 
available for audits and other evaluations authorized under 
section 179 of the Act (42 U.S.C. 12639): Provided further, 
That to the maximum extent practicable, the Corporation shall 
increase significantly the level of matching funds and in-kind 
contributions provided by the private sector, shall expand 
significantly the number of educational awards provided under 
subtitle D of title I, and shall reduce the total Federal costs 
per participant in all programs.


                      office of inspector general


    For necessary expenses of the Office of Inspector General 
in carrying out the Inspector General Act of 1978, as amended, 
$3,000,000.

                       Court of Veterans Appeals


                         salaries and expenses


    For necessary expenses for the operation of the United 
States Court of Veterans Appeals as authorized by 38 U.S.C. 
7251-7298, $10,195,000, of which $865,000, shall be available 
for the purpose of providing financial assistance as described, 
and in accordance with the process and reporting procedures set 
forth, under this heading in Public Law 102-229.

                      Department of Defense--Civil

                       Cemeterial Expenses, Army


                         salaries and expenses


    For necessary expenses, as authorized by law, for 
maintenance, operation, and improvement of Arlington National 
Cemetery and Soldiers' and Airmen's Home National Cemetery, 
including the purchase of one passenger motor vehicle for 
replacement only, and not to exceed $1,000 for official 
reception and representation expenses, $11,666,000, to remain 
available until expended.

                    Environmental Protection Agency


                         science and technology


                     (including transfer of funds)


    For science and technology, including research and 
development activities, which shall include research and 
development activities under the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (CERCLA), as 
amended; necessary expenses for personnel and related costs and 
travel expenses, including uniforms, or allowances therefore, 
as authorized by 5 U.S.C. 5901-5902; services as authorized by 
5 U.S.C. 3109, but at rates for individuals not to exceed the 
perdiem rate equivalent to the maximum rate payable for senior 
level positions under 5 U.S.C. 5376; procurement of laboratory 
equipment and supplies; other operating expenses in support of research 
and development; construction, alteration, repair, rehabilitation, and 
renovation of facilities, not to exceed $75,000 per project, 
$650,000,000, which shall remain available until September 30, 2000: 
Provided, That the obligated balance of such sums shall remain 
available through September 30, 2007 for liquidating obligations made 
in fiscal years 1999 and 2000.


                 environmental programs and management


    For environmental programs and management, including 
necessary expenses, not otherwise provided for, for personnel 
and related costs and travel expenses, including uniforms, or 
allowances therefore, as authorized by 5 U.S.C. 5901-5902; 
services as authorized by 5 U.S.C. 3109, but at rates for 
individuals not to exceed the per diem rate equivalent to the 
maximum rate payable for senior level positions under 5 U.S.C. 
5376; hire of passenger motor vehicles; hire, maintenance, and 
operation of aircraft; purchase of reprints; library 
memberships in societies or associations which issue 
publications to members only or at a price to members lower 
than to subscribers who are not members; construction, 
alteration, repair, rehabilitation, and renovation of 
facilities, not to exceed $75,000 per project; and not to 
exceed $6,000 for official reception and representation 
expenses, $1,848,000,000, which shall remain available until 
September 30, 2000: Provided, That the obligated balance of 
such sums shall remain available through September 30, 2007 for 
liquidating obligations made in fiscal years 1999 and 2000: 
Provided further, That none of the funds appropriated by this 
Act shall be used to propose or issue rules, regulations, 
decrees, or orders for the purpose of implementation, or in 
preparation for implementation, of the Kyoto Protocol which was 
adopted on December 11, 1997, in Kyoto, Japan at the Third 
Conference of the Parties to the United Nations Framework 
Convention on Climate Change, which has not been submitted to 
the Senate for advice and consent to ratification pursuant to 
article II, section 2, clause 2, of the United States 
Constitution, and which has not entered into force pursuant to 
article 25 of the Protocol: Provided further, That none of the 
funds made available in this Act may be used to implement or 
administer the interim guidance issued on February 5, 1998 by 
the Environmental Protection Agency relating to title VI of the 
Civil Rights Act of 1964 and designated as the ``Interim 
Guidance for Investigating Title VI Administrative Complaints 
Challenging Permits'' with respect to complaints filed under 
such title after the date of enactment of this Act and until 
guidance is finalized. Nothing in this proviso may be construed 
to restrict the Environmental Protection Agency from developing 
or issuing final guidance relating to title VI of the Civil 
Rights Act of 1964.


                      office of inspector general


    For necessary expenses of the Office of Inspector General 
in carrying out the provisions of the Inspector General Act of 
1978, as amended, and for construction, alteration, repair, 
rehabilitation, and renovation of facilities, not to exceed 
$75,000 per project, $31,154,000, to remain available until 
September 30, 2000: Provided, That the obligated balance of 
such sums shall remain available through September 30, 2007 for 
liquidating obligations made in fiscal years 1999 and 2000.


                        buildings and facilities


    For construction, repair, improvement, extension, 
alteration, and purchase of fixed equipment or facilities of, 
or for use by, the Environmental Protection Agency, 
$56,948,000, to remain available until expended.


                     hazardous substance superfund


                     (including transfers of funds)


    For necessary expenses to carry out the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 
(CERCLA), as amended, including sections 111(c)(3), (c)(5), 
(c)(6), and (e)(4) (42 U.S.C.9611), and for construction, 
alteration, repair, rehabilitation, and renovation of facilities, not 
to exceed $75,000 per project; not to exceed $1,500,000,000, consisting 
of $650,000,000 as appropriated under this heading in Public Law 105-
65, notwithstanding the second proviso under this heading of said Act, 
and not to exceed $850,000,000 (of which $100,000,000 shall not become 
available until September 1, 1999), all of which is to remain available 
until expended, consisting of $1,175,000,000, as authorized by section 
517(a) of the Superfund Amendments and Reauthorization Act of 1986 
(SARA), as amended by Public Law 101-508, and $325,000,000 as a payment 
from general revenues to the Hazardous Substance Superfund for purposes 
as authorized by section 517(b) of SARA, as amended by Public Law 101-
508: Provided, That funds appropriated under this heading may be 
allocated to other Federal agencies in accordance with section 111(a) 
of CERCLA: Provided further, That $12,237,000 of the funds appropriated 
under this heading shall be transferred to the ``Office of Inspector 
General'' appropriation to remain available until September 30, 2000: 
Provided further, That notwithstanding section 111(m) of CERCLA or any 
other provision of law, $76,000,000 of the funds appropriated under 
this heading shall be available to the Agency for Toxic Substances and 
Disease Registry to carry out activities described in sections 104(i), 
111(c)(4), and 111(c)(14) of CERCLA and section 118(f) of SARA: 
Provided further, That $40,000,000 of the funds appropriated under this 
heading shall be transferred to the ``Science and Technology'' 
appropriation to remain available until September 30, 2000: Provided 
further, That none of the funds appropriated under this heading shall 
be available for the Agency for Toxic Substances and Disease Registry 
to issue in excess of 40 toxicological profiles pursuant to section 
104(i) of CERCLA during fiscal year 1999: Provided further, That an 
additional amount, $650,000,000, shall become available for obligation 
on October 1, 1999, only upon enactment by August 1, 1999, of specific 
legislation which reauthorizes the Superfund program: Provided further, 
That if such reauthorization does not occur on or before August 1, 
1999, such additional amount to be made available on October 1, 1999, 
is rescinded and the Congressional Budget Office is directed to make 
the appropriate scorekeeping adjustment no later than August 5, 1999.
    Section 119(e)(2)(C) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980, as amended, 
(42 U.S.C. 9619(e)(2)(C)) is amended by deleting ``, and before 
January 1, 1996''.
    Section 119(g)(5) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980, as amended, 
(42 U.S.C. 9619(g)(5)) is amended by deleting ``, or after 
December 31, 1995''.


                leaking underground storage tank program


    For necessary expenses to carry out leaking underground 
storage tank cleanup activities authorized by section 205 of 
the Superfund Amendments and Reauthorization Act of 1986, and 
for the uses authorized under section 9004(f) of the Solid 
Waste Disposal Act, and for construction, alteration, repair, 
rehabilitation, and renovation of facilities, not to exceed 
$75,000 per project, $72,500,000, to remain available until 
expended: Provided, That hereafter, the Administrator is 
authorized to enter into assistance agreements with Federally 
recognized Indian tribes on such terms and conditions as the 
Administrator deems appropriate for the same purposes as are 
set forth in section 9003(h)(7) of the Resource Conservation 
and Recovery Act.


                           oil spill response


                     (including transfer of funds)


    For expenses necessary to carry out the Environmental 
Protection Agency's responsibilities under the Oil Pollution 
Act of 1990, $15,000,000, to be derived from the Oil Spill 
Liability trust fund, and to remain available until expended.


                   state and tribal assistance grants


    For environmental programs and infrastructure assistance, 
including capitalization grants for State revolving funds and 
performance partnership grants, $3,386,750,000, to remain 
available until expended, of which $1,350,000,000 shall be for 
making capitalization grants for the Clean Water State 
Revolving Funds under title VI of the Federal Water Pollution 
Control Act, as amended, and $775,000,000 shall be for 
capitalization grants for the Drinking Water State Revolving 
Funds under section 1452 of the Safe Drinking Water Act, as 
amended except that, notwithstanding section 1452(n) of the 
Safe Drinking Water Act, as amended, none of the funds made 
available under this heading in this Act, or in previous 
appropriations acts, shall be reserved by the Administrator for 
health effects studies on drinking water contaminants, 
$50,000,000 for architectural, engineering, planning, design, 
construction and related activities in connection with the 
construction of high priority water and wastewater facilities 
in the area of the United States-Mexico Border, after 
consultation with the appropriate border commission, 
$30,000,000 for grants to the State of Alaska to address 
drinking water and wastewater infrastructure needs of rural and 
Alaska Native Villages, $301,750,000 for making grants for the 
construction of wastewater and water treatment facilities and 
groundwater protection infrastructure in accordance with the 
terms and conditions specified for such grants in the joint 
explanatory statement of the committee of conference 
accompanying this Act (H.R. 4194); and $880,000,000 for grants, 
including associated program support costs, to States, 
federally recognized tribes, interstate agencies, tribal 
consortia, and air pollution control agencies for multi-media 
or single media pollution prevention, control and abatement and 
related activities, including activities pursuant to the 
provisions set forth under this heading in Public Law 104-134, 
and for making grants under section 103 of the Clean Air Act 
for particulate matter monitoring and data collection 
activities: Provided, That, consistent with section 1452(g) of 
the Safe Drinking Water Act (42 U.S.C. 300j-12(g)), section 302 
of the Safe Drinking Water Act Amendments of 1996 (Public Law 
104-182) and the accompanying joint explanatory statement of 
the committee of conference (H. Rept. No. 104-741 to accompany 
S. 1316, the Safe Drinking Water Act Amendments of 1996), and 
notwithstanding any other provision of law, beginning in fiscal 
year 1999 and thereafter, States may combine the assets of 
State Revolving Funds (SRFs) established under section 1452 of 
the Safe Drinking Water Act, as amended, and title VI of the 
Federal Water Pollution Control Act, as amended, as security 
for bond issues to enhance the lending capacity of one or both 
SRFs, but not to acquire the state match for either program, 
provided that revenues from the bonds are allocated to the 
purposes of the Safe Drinking Water Act and the Federal Water 
Pollution Control Act in the same portion as the funds are used 
as security for the bonds: Provided further, That, 
notwithstanding the matching requirement in Public Law 104-204 
for funds appropriated under this heading for grants to the 
State of Texas for improving wastewater treatment for the 
Colonias, such funds that remain unobligated may also be used 
for improving water treatment for the Colonias, and shall be 
matched by State funds from State resources equal to 20 percent 
of such unobligated funds: Provided further, That, hereafter 
the Administrator is authorized to enter into assistance 
agreements with Federally recognized Indian tribes on such 
terms and conditions as the Administrator deems appropriate for 
the development and implementation of programs to manage 
hazardous waste, and underground storage tanks: Provided 
further, That beginning in fiscal year 1999 and thereafter, 
pesticide program implementation grants under section 23(a)(1) 
of the Federal Insecticide, Fungicide and Rodenticide Act, as 
amended, shall be available for pesticide program development 
andimplementation, including enforcement and compliance 
activities: Provided further, That, notwithstanding section 603(d)(7) 
of the Federal Water Pollution Control Act, as amended, the limitation 
on the amounts in a State water pollution control revolving fund that 
may be used by a State to administer the fund shall not apply to 
amounts included as principal in loans made by such fund in fiscal year 
1999 and prior years where such amounts represent costs of 
administering the fund, to the extent that such amounts are or were 
deemed reasonable by the Administrator, accounted for separately from 
other assets in the fund, and used for eligible purposes of the fund, 
including administration.


                          working capital fund


    Under this heading in Public Law 104-204, after the phrase, 
``that such fund shall be paid in advance'', insert ``or 
reimbursed''.


                        administrative provision


    Not later than March 31, 1999, the Administrator of the 
Environmental Protection Agency shall issue regulations 
amending 40 C.F.R. 112 to comply with the requirements of the 
Edible Oil Regulatory Reform Act (Public Law 104-55). Such 
regulations shall differentiate between and establish separate 
classes for animal fats and oils and greases, and fish and 
marine mammal oils (as described in that Act), and other oils 
and greases, and shall apply standards to such different 
classes of fats and oils based on differences in the physical, 
chemical, biological, and other properties, and in the 
environmental effects, of the classes. None of the funds made 
available by this Act or in subsequent Acts may be used by the 
Environmental Protection Agency to issue or to establish an 
interpretation or guidance relating to fats, oils, and greases 
(as described in Public Law 104-55) that does not comply with 
the requirements of the Edible Oil Regulatory Reform Act.

                   Executive Office of the President


                office of science and technology policy


    For necessary expenses of the Office of Science and 
Technology Policy, in carrying out the purposes of the National 
Science and Technology Policy, Organization, and Priorities Act 
of 1976 (42 U.S.C. 6601 and 6671), hire of passenger motor 
vehicles, and services as authorized by 5 U.S.C. 3109, not to 
exceed $2,500 for official reception and representation 
expenses, and rental of conference rooms in the District of 
Columbia, $5,026,000.


  council on environmental quality and office of environmental quality


    For necessary expenses to continue functions assigned to 
the Council on Environmental Quality and Office of 
Environmental Quality pursuant to the National Environmental 
Policy Act of 1969, the Environmental Quality Improvement Act 
of 1970, and Reorganization Plan No. 1 of 1977, $2,675,000: 
Provided, That, notwithstanding any other provision of law, no 
funds other than those appropriated under this heading, shall 
be used for or by the Council on Environmental Quality and 
Office of Environmental Quality: Provided further, That 
notwithstanding section 202 of the National Environmental 
Policy Act of 1970, the Council shall consist of one member, 
appointed by the President, by and with the advice and consent 
of the Senate, serving as Chairman and exercising all powers, 
functions, and duties of the Council.

                 Federal Deposit Insurance Corporation


                      office of inspector general


                     (including transfer of funds)


    For necessary expenses of the Office of Inspector General 
in carrying out the provisions of the Inspector General Act of 
1978, as amended, $34,666,000, to be derived from the Bank 
Insurance Fund, the Savings Association Insurance Fund, and the 
FSLIC Resolution Fund.

                  Federal Emergency Management Agency


                            disaster relief


    For necessary expenses in carrying out the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.), $307,745,000, and, notwithstanding 42 
U.S.C. 5203, to remain available until expended: Provided, That 
of the funds made available under this heading in this and 
prior Appropriations Acts which are eligible for grants to the 
State of California under section 404 of the Stafford Disaster 
Relief and Emergency Assistance Act, $5,000,000 shall be for a 
pilot project of seismic retrofit technology at California 
State University, San Bernardino, $5,000,000 shall be for 
seismic retrofit at the San Bernardino County Courthouse, and 
$30,000,000 shall be for a project at the Loma Linda University 
Medical Center hospital using laser technology demonstrating 
non-disruptive retrofitting.


            disaster assistance direct loan program account


    For the cost of direct loans, $1,355,000, as authorized by 
section 319 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act: Provided, That such costs, including 
the cost of modifying such loans, shall be as defined in 
section 502 of the Congressional Budget Act of 1974, as 
amended: Provided further, That these funds are available to 
subsidize gross obligations for the principal amount of direct 
loans not to exceed $25,000,000.
    In addition, for administrative expenses to carry out the 
direct loan program, $440,000.


                         salaries and expenses


    For necessary expenses, not otherwise provided for, 
including hire and purchase of motor vehicles as authorized by 
31 U.S.C. 1343; uniforms, or allowances therefor, as authorized 
by 5 U.S.C. 5901-5902; services as authorized by 5 U.S.C. 3109, 
but at rates for individuals not to exceed the per diem rate 
equivalent to the maximum rate payable for senior level 
positions under 5 U.S.C. 5376; expenses of attendance of 
cooperating officials and individuals at meetings concerned 
with the work of emergency preparedness; transportation in 
connection with the continuity of Government programs to the 
same extent and in the same manner as permitted the Secretary 
of a Military Department under 10 U.S.C. 2632; and not to 
exceed $2,500 for official reception and representation 
expenses, $171,138,000.


                      office of inspector general


    For necessary expenses of the Office of Inspector General 
in carrying out the Inspector General Act of 1978, as amended, 
$5,400,000.


              emergency management planning and assistance


    For necessary expenses, not otherwise provided for, to 
carry out activities under the National Flood Insurance Act of 
1968, as amended, and the Flood Disaster Protection Act of 
1973, as amended (42 U.S.C. 4001 et seq.), the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.), the Earthquake Hazards Reduction Act of 
1977, as amended (42 U.S.C. 7701 et seq.), the Federal Fire 
Prevention and Control Act of 1974, as amended (15 U.S.C. 2201 
et seq.), the Defense Production Act of 1950, as amended (50 
U.S.C. App. 2061 et seq.), sections 107 and 303 of the National 
Security Act of 1947, as amended (50 U.S.C. 404-405), and 
Reorganization Plan No. 3 of 1978, $240,824,000: Provided, That 
for purposes of pre-disaster mitigation pursuant to 42 U.S.C. 
5131 (b) and (c) and 42 U.S.C. 5196 (e) and (i), $25,000,000 of 
the funds made available under this heading shall be available 
until expended for project grants: Provided further, That the 
United States Fire Administration shall conduct a 12-month 
pilot project to promote the installation and maintenance of 
smoke detectors in the localities of highest risk for 
residential fires: Provided further, That the United States 
Fire Administration shall transmit the results of its pilot 
project to the Consumer Product Safety Commission and the 
Congress.


                radiological emergency preparedness fund


    There is hereby established in the Treasury a Radiological 
Emergency Preparedness Fund, which shall be available under the 
Atomic Energy Act of 1954, as amended, and Executive Order 
12657, for offsite radiological emergency planning, 
preparedness, and response. Beginning in fiscal year 1999 and 
thereafter, the Director of the Federal Emergency Management 
Agency (FEMA) shall promulgate through rulemaking fees to be 
assessed and collected, applicable to persons subject to FEMA's 
radiological emergency preparedness regulations. The aggregate 
charges assessed pursuant to this section during fiscal year 
1999 shall not be less than 100 percent of the amounts 
anticipated by FEMA necessary for its radiological emergency 
preparedness program for such fiscal year. The methodology for 
assessment and collection of fees shall be fair and equitable; 
and shall reflect costs of providing such services, including 
administrative costs of collecting such fees. Fees received 
pursuant to this section shall be deposited in the Fund as 
offsetting collections and will become available for authorized 
purposes on October 1, 1999, and remain available until 
expended.
    For necessary expenses of the Fund for fiscal year 1999, 
$12,849,000, to remain available until expended.


                   emergency food and shelter program


    To carry out an emergency food and shelter program pursuant 
to title III of Public Law 100-77, as amended, $100,000,000: 
Provided, That total administrative costs shall not exceed 
three and one-half percent of the total appropriation.


                     national flood insurance fund


                     (including transfer of funds)


    For activities under the National Flood Insurance Act of 
1968, the Flood Disaster Protection Act of 1973, as amended, 
not to exceed $22,685,000 for salaries and expenses associated 
with flood mitigation and flood insurance operations, and not 
to exceed $78,464,000 for flood mitigation, including up to 
$20,000,000 for expensesunder section 1366 of the National 
Flood Insurance Act, which amount shall be available for transfer to 
the National Flood Mitigation Fund until September 30, 2000. In fiscal 
year 1999, no funds in excess of: (1) $47,000,000 for operating 
expenses; (2) $343,989,000 for agents' commissions and taxes; and (3) 
$60,000,000 for interest on Treasury borrowings shall be available from 
the National Flood Insurance Fund without prior notice to the 
Committees on Appropriations. For fiscal year 1999, flood insurance 
rates shall not exceed the level authorized by the National Flood 
Insurance Reform Act of 1994.
    Section 1309(a)(2) of the National Flood Insurance Act (42 
U.S.C. 4016(a)(2)), as amended by Public Law 104-208, is 
further amended by striking ``1998'' and inserting ``1999''.
    Section 1319 of the National Flood Insurance Act of 1968, 
as amended (42 U.S.C. 4026), is amended by striking ``September 
30, 1998'' and inserting ``September 30, 1999''.
    Section 1336 of the National Flood Insurance Act of 1968, 
as amended (42 U.S.C. 4056), is amended by striking ``September 
30, 1998'' and inserting ``September 30, 1999''.
    The first sentence of section 1376(c) of the National Flood 
Insurance Act of 1968, as amended (42 U.S.C. 4127(c)), is 
amended by striking ``September 30, 1998'' and inserting 
``September 30, 1999''.

                    General Services Administration


                    consumer information center fund


    For necessary expenses of the Consumer Information Center, 
including services authorized by 5 U.S.C. 3109, $2,619,000, to 
be deposited into the Consumer Information Center Fund: 
Provided, That the appropriations, revenues and collections 
deposited into the fund shall be available for necessary 
expenses of Consumer Information Center activities in the 
aggregate amount of $7,500,000. Appropriations, revenues, and 
collections accruing to this fund during fiscal year 1999 in 
excess of $7,500,000 shall remain in the fund and shall not be 
available for expenditure except as authorized in 
appropriations Acts.

             National Aeronautics and Space Administration


                           human space flight


    For necessary expenses, not otherwise provided for, in the 
conduct and support of human space flight research and 
development activities, including research, development, 
operations, and services; maintenance; construction of 
facilities including repair, rehabilitation, and modification 
of real and personal property, and acquisition or condemnation 
of real property, as authorized by law; space flight, 
spacecraft control and communications activities including 
operations, production, and services; and purchase, lease, 
charter, maintenance and operation of mission and 
administrative aircraft, $5,480,000,000, to remain available 
until September 30, 2000.


                  science, aeronautics and technology


    For necessary expenses, not otherwise provided for, in the 
conduct and support of science, aeronautics and technology 
research and development activities, including research, 
development, operations, and services; maintenance; 
construction of facilities including repair, rehabilitation, 
and modification of real and personal property, and acquisition 
or condemnation of real property, as authorized by law; space 
flight, spacecraft control and communications activities 
including operations, production, and services; and purchase, 
lease, charter, maintenance and operation of mission and 
administrative aircraft, $5,653,900,000, to remain available 
until September 30, 2000: Provided, That none of the funds 
provided under this heading may be utilized to support the 
development or operations of the International Space Station: 
Provided further, That this limitation shall not preclude the 
use of funds provided under this heading for the conduct of 
science, aeronautics, space transportation and technology 
activities utilizing or enabled by the International Space 
Station.


                            mission support


    For necessary expenses, not otherwise provided for, in 
carrying out mission support for human space flight programs 
and science, aeronautical, and technology programs, including 
research operations and support; space communications 
activities including operations, production and services; 
maintenance; construction of facilities including repair, 
rehabilitation, and modification of facilities, minor 
construction of new facilities and additions to existing 
facilities, facility planning and design, environmental 
compliance and restoration, and acquisition or condemnation of 
real property, as authorized by law; program management; 
personnel and related costs, including uniforms or allowances 
therefor, as authorized by 5 U.S.C. 5901-5902; travel expenses; 
purchase, lease, charter, maintenance, and operation of mission 
and administrative aircraft; not to exceed $35,000 for official 
reception and representation expenses; and purchase (not to 
exceed 33 for replacement only) and hire of passenger motor 
vehicles, $2,511,100,000, to remain available until September 
30, 2000.


                      office of inspector general


    For necessary expenses of the Office of Inspector General 
in carrying out the Inspector General Act of 1978, as amended, 
$20,000,000.


                       administrative provisions


    Notwithstanding the limitation on the availability of funds 
appropriated for ``Human space flight'', ``Science, aeronautics 
and technology'', or ``Mission support'' by this appropriations 
Act, when any activity has been initiated by the incurrence of 
obligations for construction of facilities as authorized by 
law, such amount available for such activity shall remain 
available until expended. This provision does not apply to the 
amounts appropriated in ``Mission support'' pursuant to the 
authorization for repair, rehabilitation and modification of 
facilities, minor construction of new facilities and additions 
to existing facilities, and facility planning and design.
    Notwithstanding the limitation on the availability of funds 
appropriated for ``Human space flight'', ``Science, aeronautics 
and technology'', or ``Mission support'' by this appropriations 
Act, the amounts appropriated for construction of facilities 
shall remain available until September 30, 2001.
    Notwithstanding the limitation on the availability of funds 
appropriated for ``Mission support'' and ``Office of Inspector 
General'', amounts made available by this Act for personnel and 
related costs and travel expenses of the National Aeronautics 
and Space Administration shall remain available until September 
30, 1999 and may be used to enter into contracts for training, 
investigations, costs associated with personnel relocation, and 
for other services, to be provided during the next fiscal year.
    NASA shall develop a revised appropriation structure for 
submission in the fiscal year 2000 budget request consisting of 
five appropriations accounts (International Space Station; 
Launch Vehicles and Payload Operations; Science, Aeronautics 
and Technology; Mission Support; and Office of Inspector 
General).

                  National Credit Union Administration


                       central liquidity facility


    During fiscal year 1999, gross obligations of the Central 
Liquidity Facility for the principal amount of new direct loans 
to member credit unions, as authorized by the National Credit 
Union Central Liquidity Facility Act (12 U.S.C. 1795), shall 
not exceed $600,000,000: Provided, That administrative expenses 
of the Central Liquidity Facility in fiscal year 1999 shall not 
exceed $176,000: Provided further, That $2,000,000, together 
with amounts of principal and interest on loans repaid, to be 
available until expended, is available for loans to community 
development credit unions.

                      National Science Foundation


                    research and related activities


    For necessary expenses in carrying out the National Science 
Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), and 
the Act to establish a National Medal of Science (42 U.S.C. 
1880-1881); services as authorized by 5 U.S.C. 3109; 
maintenance and operation of aircraft and purchase of flight 
services for research support; acquisition of aircraft, 
$2,770,000,000, of which not to exceed $257,460,000, shall 
remain available until expended for Polar research and 
operations support, and for reimbursement to other Federal 
agencies for operational and science support and logistical and 
other related activities for the United States Antarctic 
program; the balance to remain available until September 30, 
2000: Provided, That receipts for scientific support services 
and materials furnished by the National Research Centers and 
other National Science Foundation supported research facilities 
may be credited to this appropriation: Provided further, That 
to the extent that the amount appropriated is less than the 
total amount authorized to be appropriated for included program 
activities, all amounts, including floors and ceilings, 
specified in the authorizing Act for those program activities 
or their subactivities shall be reduced proportionally: 
Provided further, That none of the funds appropriated or 
otherwise made available to the National Science Foundation in 
this or any prior Act may be obligated or expended by the 
National Science Foundation to enter into or extend a grant, 
contract, or cooperative agreement for the support of 
administering the domain name and numbering system of the 
Internet after September 30, 1998.


                        major research equipment


    For necessary expenses of major construction projects 
pursuant to the National Science Foundation Act of 1950, as 
amended, $90,000,000, to remain available until expended.


                     education and human resources


    For necessary expenses in carrying out science and 
engineering education and human resources programs and 
activities pursuant to the National Science Foundation Act of 
1950, as amended (42 U.S.C. 1861-1875), including services as 
authorized by 5 U.S.C. 3109 and rental of conference rooms in 
the District of Columbia, $662,000,000, to remain available 
until September 30, 2000: Provided, That to the extent that the 
amount of this appropriation is less than the total amount 
authorized to be appropriated for included program activities, 
all amounts, including floors and ceilings, specified in the 
authorizing Act for those program activities or their 
subactivities shall be reduced proportionally: Provided 
further, That the Alliances for Minority Participation Program 
is renamed the Louis Stokes Alliances for Minority 
Participation Program.


                         salaries and expenses


    For salaries and expenses necessary in carrying out the 
National Science Foundation Act of 1950, as amended (42 U.S.C. 
1861-1875); services authorized by 5 U.S.C. 3109; hire of 
passenger motor vehicles; not to exceed $9,000 for official 
reception and representation expenses; uniforms or allowances 
therefor, as authorized by 5 U.S.C. 5901-5902; rental of 
conference rooms in the District of Columbia; reimbursement of 
the General Services Administration for security guard 
services; $144,000,000: Provided, That contracts may be entered 
into under ``Salaries and expenses'' in fiscal year 1999 for 
maintenance and operation of facilities, and for other 
services, to be provided during the next fiscal year.


                      office of inspector general


    For necessary expenses of the Office of Inspector General 
as authorized by the Inspector General Act of 1978, as amended, 
$5,200,000, to remain available until September 30, 2000.

                 Neighborhood Reinvestment Corporation


          payment to the neighborhood reinvestment corporation


    For payment to the Neighborhood Reinvestment Corporation 
for use in neighborhood reinvestment activities, as authorized 
by the Neighborhood Reinvestment Corporation Act (42 U.S.C. 
8101-8107), $90,000,000: Provided, That $25,000,000 shall be 
for a pilot homeownership initiative, including an evaluation 
by an independent third party to determine its effectiveness.

                        Selective Service System


                         salaries and expenses


    For necessary expenses of the Selective Service System, 
including expenses of attendance at meetings and of training 
for uniformed personnel assigned to the Selective Service 
System, as authorized by 5 U.S.C. 4101-4118 for civilian 
employees; and not to exceed $1,000 for official reception and 
representation expenses, $24,176,000: Provided, That during the 
current fiscal year, the President may exempt this 
appropriation from the provisions of 31 U.S.C. 1341, whenever 
he deems such action to be necessary in the interest of 
national defense: Provided further, That none of the funds 
appropriated by this Act may be expended for or in connection 
with the induction of any person into the Armed Forces of the 
United States.

                      TITLE IV--GENERAL PROVISIONS

    Sec. 401. Where appropriations in titles I, II, and III of 
this Act are expendable for travel expenses and no specific 
limitation has been placed thereon, the expenditures for such 
travel expenses may not exceed the amounts set forth therefore 
in the budget estimates submitted for the appropriations: 
Provided, That this provision does not apply to accounts that 
do not contain an object classification for travel: Provided 
further, That this section shall not apply to travel performed 
by uncompensated officials of local boards and appeal boards of 
the Selective Service System; to travel performed directly in 
connection with care and treatment of medical beneficiaries of 
the Department of Veterans Affairs; to travel performed in 
connection with major disasters or emergencies declared or 
determined by the President under the provisions of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act; to 
travel performed by the Offices of Inspector General in 
connection with audits and investigations; or to payments to 
interagency motor pools where separately set forth in the 
budget schedules: Provided further, That if appropriations in 
titles I, II, and III exceed the amounts set forth in budget 
estimates initially submitted for such appropriations, the 
expenditures for travel may correspondingly exceed the amounts 
therefore set forth in the estimates in the same proportion.
    Sec. 402. Appropriations and funds available for the 
administrative expenses of the Department of Housing and Urban 
Development and the Selective Service System shall be available 
in the current fiscal year for purchase of uniforms, or 
allowances therefor, as authorized by 5 U.S.C. 5901-5902; hire 
of passenger motor vehicles; and services as authorized by 5 
U.S.C. 3109.
    Sec. 403. Funds of the Department of Housing and Urban 
Development subject to the Government Corporation Control Act 
or section 402 of the Housing Act of 1950 shall be available, 
without regard to the limitations on administrative expenses, 
for legal services on a contract or fee basis, and for 
utilizing and making payment for services and facilities of 
Federal National Mortgage Association, Government National 
Mortgage Association, Federal Home Loan Mortgage Corporation, 
Federal Financing Bank, Federal Reserve banks or any member 
thereof, Federal Home Loan banks, and any insured bank within 
the meaning of the Federal Deposit Insurance Corporation Act, 
as amended (12 U.S.C. 1811-1831).
    Sec. 404. No part of any appropriation contained in this 
Act shall remain available for obligation beyond the current 
fiscal year unless expressly so provided herein.
    Sec. 405. No funds appropriated by this Act may be 
expended--
            (1) pursuant to a certification of an officer or 
        employee of the United States unless--
                    (A) such certification is accompanied by, 
                or is part of, a voucher or abstract which 
                describes the payee or payees and the items or 
                services for which such expenditure is being 
                made; or
                    (B) the expenditure of funds pursuant to 
                such certification, and without such a voucher 
                or abstract, is specifically authorized by law; 
                and
            (2) unless such expenditure is subject to audit by 
        the General Accounting Office or is specifically exempt 
        by law from such audit.
    Sec. 406. None of the funds provided in this Act to any 
department or agency may be expended for the transportation of 
any officer or employee of such department or agency between 
their domicile and their place of employment, with the 
exception of any officer or employee authorized such 
transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.
    Sec. 407. None of the funds provided in this Act may be 
used for payment, through grants or contracts, to recipients 
that do not share in the cost of conducting research resulting 
from proposals not specifically solicited by the Government: 
Provided, That the extent of cost sharing by the recipient 
shall reflect the mutuality of interest of the grantee or 
contractor and the Government in the research.
    Sec. 408. None of the funds in this Act may be used, 
directly or through grants, to pay or to provide reimbursement 
for payment of the salary of a consultant (whether retained by 
the Federal Government or a grantee) at more than the daily 
equivalent of the rate paid for level IV of the Executive 
Schedule, unless specifically authorized by law.
    Sec. 409. None of the funds provided in this Act shall be 
used to pay the expenses of, or otherwise compensate, non-
Federal parties intervening in regulatory or adjudicatory 
proceedings. Nothing herein affects the authority of the 
Consumer Product Safety Commission pursuant to section 7 of the 
Consumer Product Safety Act (15 U.S.C. 2056 et seq.).
    Sec. 410. Except as otherwise provided under existing law, 
or under an existing Executive Order issued pursuant to an 
existing law, the obligation or expenditure of any 
appropriation under this Act for contracts for any consulting 
service shall be limited to contracts which are: (1) a matter 
of public record and available for public inspection; and (2) 
thereafter included in a publicly available list of all 
contracts entered into within twenty-four months prior to the 
date on which the list is made available to the public and of 
all contracts on which performance has not been completed by 
such date. The list required by the preceding sentence shall be 
updated quarterly and shall include a narrative description of 
the work to be performed under each such contract.
    Sec. 411. Except as otherwise provided by law, no part of 
any appropriation contained in this Act shall be obligated or 
expended by any executive agency, as referred to in the Office 
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.), for 
a contract for services unless such executive agency: (1) has 
awarded and entered into such contract in full compliance with 
such Act and the regulations promulgated thereunder; and (2) 
requires any report prepared pursuant to such contract, 
including plans, evaluations, studies, analyses and manuals, 
and any report prepared by the agency which is substantially 
derived from or substantially includes any report prepared 
pursuant to such contract, to contain information concerning: 
(A) the contract pursuant to which the report was prepared; and 
(B) the contractor who prepared the report pursuant to such 
contract.
    Sec. 412. Except as otherwise provided in section 406, none 
of the funds provided in this Act to any department or agency 
shall be obligated or expended to provide a personal cook, 
chauffeur, or other personal servants to any officer or 
employee of such department or agency.
    Sec. 413. None of the funds provided in this Act to any 
department or agency shall be obligated or expended to procure 
passenger automobiles as defined in 15 U.S.C. 2001 with an EPA 
estimated miles per gallon average of less than 22 miles per 
gallon.
    Sec. 414. None of the funds appropriated in title I of this 
Act shall be used to enter into any new lease of real property 
if the estimated annual rental is more than $300,000 unless the 
Secretary submits, in writing, a report to the Committees on 
Appropriations of the Congress and a period of 30 days has 
expired following the date on which the report is received by 
the Committees on Appropriations.
    Sec. 415. (a) It is the sense of the Congress that, to the 
greatest extent practicable, all equipment and products 
purchased with funds made available in this Act should be 
American-made.
    (b) In providing financial assistance to, or entering into 
any contract with, any entity using funds made available in 
this Act, the head of each Federal agency, to the greatest 
extent practicable, shall provide to such entity a notice 
describing the statement made in subsection (a) by the 
Congress.
    Sec. 416. None of the funds appropriated in this Act may be 
used to implement any cap on reimbursements to grantees for 
indirect costs, except as published in Office of Management and 
Budget Circular A-21.
    Sec. 417. Such sums as may be necessary for fiscal year 
1999 pay raises for programs funded by this Act shall be 
absorbed within the levels appropriated in this Act.
    Sec. 418. None of the funds made available in this Act may 
be used for any program, project, or activity, when it is made 
known to the Federal entity or official to which the funds are 
made available that the program, project, or activity is not in 
compliance with any Federal law relating to risk assessment, 
the protection of private property rights, or unfunded 
mandates.
    Sec. 419. Corporations and agencies of the Department of 
Housing and Urban Development which are subject to the 
Government Corporation Control Act, as amended, are hereby 
authorized to make such expenditures, within the limits of 
funds and borrowing authority available to each such 
corporation or agency and in accord with law, and to make such 
contracts and commitments without regard to fiscal year 
limitations as provided by section 104 of the Act as may be 
necessary in carrying out the programs set forth in the budget 
for 1999 for such corporation or agency except as hereinafter 
provided: Provided, That collections of these corporations and 
agencies may be used for new loan or mortgage purchase 
commitments only to the extent expressly provided for in this 
Act (unless such loans are in support of other forms of 
assistance provided for in this or prior appropriations Acts), 
except that this proviso shall not apply to the mortgage 
insurance or guaranty operations of these corporations, or 
where loans or mortgage purchases are necessary to protect the 
financial interest of the United States Government.
    Sec. 420. Notwithstanding section 320(g) of the Federal 
Water Pollution Control Act (33 U.S.C. 1330(g)), funds made 
available pursuant to authorization under such section for 
fiscal year 1999 and prior fiscal years may be used for 
implementing comprehensive conservation and management plans.
    Sec. 421. Notwithstanding any other provision of law, the 
term ``qualified student loan'' with respect to national 
service education awards shall mean any loan made directly to a 
student by the Alaska Commission on Postsecondary Education, in 
addition to other meanings under section 148(b)(7) of the 
National and Community Service Act.
    Sec. 422. Notwithstanding any other law, funds made 
available by this or any other Act or previous Acts for the 
United States/Mexico Foundation for Science may be used for the 
endowment of such Foundation.
    Sec. 423. (a) Within 90 days of enactment of this Act, the 
Consumer Product Safety Commission shall make all necessary 
arrangements for the Committee on Toxicology of the National 
Academy of Sciences (NAS) to conduct an independent 12-month 
study of the potential toxicologic risks of all flame-retardant 
chemicals identified by the NAS and the Commission as likely 
candidates for use in residential upholstered furniture for the 
purpose of meeting regulations proposed by the Commission for 
flame resistance of residential upholstered furniture.
    (b) Upon completion of its report, the Academy shall send 
the report to the Commission, which shall provide it to the 
Congress.
    (c) The Commission, before promulgating any notice of 
proposed rulemaking or final rulemaking setting flammability 
standards for residential upholstered furniture, shall consider 
fully the findings and conclusions of the Academy.
    Sec. 424. None of the funds made available in this Act may 
be used for researching methods to reduce methane emissions 
from cows, sheep, or any other ruminant livestock.
    Sec. 425. None of the funds made available in this Act may 
be used to carry out Executive Order No. 13083.
    Sec. 426. Unless otherwise provided for in this Act, no 
part of any appropriation for the Department of Housing and 
Urban Development shall be available for any activity in excess 
of amounts set forth in the budget estimates submitted for the 
appropriations.
    Sec. 427. National Fallen Firefighters Foundation. (a) 
Establishment and Purposes.--Section 202 of the National Fallen 
Firefighters Foundation Act (36 U.S.C. 5201) is amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1) primarily--
                    ``(A) to encourage, accept, and administer 
                private gifts of property for the benefit of 
                the National Fallen Firefighters' Memorial and 
                the annual memorial service associated with the 
                memorial; and
                    ``(B) to, in coordination with the Federal 
                Government and fire services (as that term is 
                defined in section 4 of the Federal Fire 
                Prevention and Control Act of 1974 (15 U.S.C. 
                2203)), plan, direct, and manage the memorial 
                service referred to in subparagraph (A) and 
                related activities;'';
            (2) in paragraph (2), by inserting ``and Federal'' 
        after ``non-Federal'';
            (3) in paragraph (3)--
                    (A) by striking ``State and local'' and 
                inserting ``Federal, State, and local''; and
                    (B) by striking ``and'' at the end;
            (4) in paragraph (4), by striking the period at the 
        end and inserting a semicolon; and
            (5) by adding at the end the following:
            ``(5) to provide for a national program to assist 
        families of fallen firefighters and fire departments in 
        dealing with line-of-duty deaths of those firefighters; 
        and
            ``(6) to promote national, State, and local 
        initiatives to increase public awareness of fire and 
        life safety.''.
    (b) Board of Directors of Foundation.--Section 203(g)(1) of 
the National Fallen Firefighters Foundation Act (36 U.S.C. 
5202(g)(1)) is amended by striking subparagraph (A) and 
inserting the following:
                    ``(A) appointing officers or employees;''.
    (c) Administrative Services and Support.--Section 205 of 
the National Fallen Firefighters Foundation Act (36 U.S.C. 
5204) is amended to read as follows:

``SEC. 205. ADMINISTRATIVE SERVICES AND SUPPORT.

    ``(a) In General.--During the 10-year period beginning on 
the date of enactment of the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1999, the Administrator may--
            ``(1) provide personnel, facilities, and other 
        required services for the operation of the Foundation; 
        and
            ``(2) accept reimbursement for the assistance 
        provided under paragraph (1).
    ``(b) Reimbursement.--Any amounts received under subsection 
(a)(2) as reimbursement for assistance shall be deposited in 
the Treasury to the credit of the appropriations then current 
and chargeable for the cost of providing that assistance.
    ``(c) Prohibition.--Notwithstanding any other provision of 
law, no Federal personnel or stationery may be used to solicit 
funding for the Foundation.''.
    Sec. 428. Ineligibility of Individuals Convicted of 
Manufacturing or Producing Methamphetamine for Certain Housing 
Assistance. Section 16 of the United States Housing Act of 1937 
(42 U.S.C. 1437n) is amended by adding at the end the 
following:
    ``(f) Ineligibility of Individuals Convicted of 
Manufacturing or Producing Methamphetamine on the Premises.--
Notwithstanding any other provision of law, a public housing 
agency shall establish standards for occupancy in public 
housing dwelling units and assistance under section 8 that--
            ``(1) permanently prohibit occupancy in any public 
        housing dwelling unit by, and assistance under section 
        8 for, any person who has been convicted of 
        manufacturing or otherwise producing methamphetamine on 
        the premises in violation of any Federal or State law; 
        and
            ``(2) immediately and permanently terminate the 
        tenancy in any public housing unit of, and the 
        assistance under section 8 for, any person who is 
        convicted of manufacturing or otherwise producing 
        methamphetamine on the premises in violation of any 
        Federal or State law.''.
    Sec. 429. (a) Not later than 90 days after the date of 
enactment of this Act, the Consumer Product Safety Commission 
shall propose for comment a revocation of the amendments to the 
standards for the flammability of children's sleepwear sizes 0 
through 6X (contained in regulations published at 16 CFR part 
1615) and 7 through 14 (contained in regulations published at 
16 CFR part 1616) issued by the Commission on September 9, 1996 
(61 FR 47634), and any subsequent amendments thereto.
    (b) The General Accounting Office shall undertake a review 
of children's burn incident data relating to burns from the 
ignition of children's sleepwear from small open flame sources 
for the period July 1, 1997 through January 1, 1999. Such 
review shall be completed by April 1, 1999 and shall be 
submitted to the Congress and to the Consumer Product Safety 
Commission.
    (c) Not later than July 1, 1999, the Consumer Product 
Safety Commission shall promulgate a final rule revoking, 
maintaining or modifying the amendments issued by the 
Commission on September 9, 1996 (61 FR 47634) and any 
subsequent amendments thereto amending the Flammable Fabrics 
Act standards for the flammability of children's sleepwear, 
considering and substantively addressing the findings of the 
General Accounting Office and other information available to 
the Commission.
    (d) None of the following shall apply with respect to the 
promulgation of the amendment prescribed by subsection (a):
            (1) The Consumer Product Safety Act (15 U.S.C. 2051 
        et seq.).
            (2) The Flammable Fabrics Act (15 U.S.C. 1191 et 
        seq.).
            (3) Chapter 6 of title 5, United States Code.
            (4) The National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.).
            (5) The Small Business Regulatory Enforcement 
        Fairness Act of 1996 (Public Law 104-121).
            (6) Any other statute or Executive Order.
    Sec. 430. Comprehensive Accountability Study for Federally-
Funded Research. (a) Study.--The Director of the Office of 
Science and Technology Policy, in consultation with the 
Director of the Office of Management and Budget, may enter into 
an agreement with the National Academy of Sciences for the 
Academy to conduct a comprehensive study to develop methods for 
evaluating federally-funded research and development programs. 
This study shall--
            (1) recommend processes to determine an acceptable 
        level of success for federally-funded research and 
        development programs by--
                    (A) describing the research process in the 
                various scientific and engineering disciplines;
                    (B) describing in the different sciences 
                what measures and what criteria each community 
                uses to evaluate the success or failure of a 
                program, and on what time scales these measures 
                are considered reliable--both for exploratory 
                long-range work and for short-range goals; and
                    (C) recommending how these measures may be 
                adapted for use by the Federal Government to 
                evaluate federally-funded research and 
                development programs;
            (2) assess the extent to which agencies incorporate 
        independent merit-based evaluation into the formulation 
        of the strategic plans of funding agencies and if the 
        quantity or quality of this type of input is 
        unsatisfactory;
            (3) recommend mechanisms for identifying federally-
        funded research and development programs which are 
        unsuccessful or unproductive;
            (4) evaluate the extent to which independent, 
        merit-based evaluation of federally-funded research and 
        development programs and projects achieves the goal of 
        eliminating unsuccessful or unproductive programs and 
        projects; and
            (5) investigate and report on the validity of using 
        quantitative performance goals for aspects of programs 
        which relate to administrative management of the 
        program and for which such goals would be appropriate, 
        including aspects related to--
                    (A) administrative burden on contractors 
                and recipients of financial assistance awards;
                    (B) administrative burdens on external 
                participants in independent, merit-based 
                evaluations;
                    (C) cost and schedule control for 
                construction projects funded by the program;
                    (D) the ratio of overhead costs of the 
                program relative to the amounts expended 
                through the program for equipment and direct 
                funding of research; and
                    (E) the timeliness of program responses to 
                requests for funding, participation, or 
                equipment use.
    (b) Independent Merit-Based Evaluation Defined.--The term 
``independent merit-based evaluation'' means review of the 
scientific or technical quality of research or development, 
conducted by experts who are chosen for their knowledge of 
scientific and technical fields relevant to the evaluation and 
who--
            (1) in the case of the review of a program 
        activity, do not derive long-term support from the 
        program activity; or
            (2) in the case of the review of a project 
        proposal, are not seeking funds in competition with the 
        proposal.
    Sec. 431. Insurance; Indemnification; Liability. (a) In 
General.--The Administrator may provide liability insurance 
for, or indemnification to, the developer of an experimental 
aerospace vehicle developed or used in execution of an 
agreement between the Administration and the developer.
    (b) Terms and Conditions.--
            (1) In general.--Except as otherwise provided in 
        this section, the insurance and indemnification 
        provided by the Administration under subsection (a) to 
        a developer shall be provided on the same terms and 
        conditions as insurance and indemnification is provided 
        by the Administration under section 308 of the National 
        Aeronautics and Space Act of 1958 (42 U.S.C. 2458b) to 
        the user of a space vehicle.
            (2) Insurance.--
                    (A) In general.--A developer shall obtain 
                liability insurance or demonstrate financial 
                responsibility in amounts to compensate for the 
                maximum probable loss from claims by--
                            (i) a third party for death, bodily 
                        injury, or property damage, or loss 
                        resulting from an activity carried out 
                        in connection with the development or 
                        use of an experimental aerospace 
                        vehicle; and
                            (ii) the United States Government 
                        for damage or loss to Government 
                        property resulting from such an 
                        activity.
                    (B) Maximum required.--The Administrator 
                shall determine the amount of insurance 
                required, but, except as provided in 
                subparagraph (C), that amount shall not be 
                greater than the amount required under section 
                70112(a)(3) of title 49, United States Code, 
                for a launch. The Administrator shall publish 
                notice of the Administrator's determination and 
                the applicable amount or amounts in the Federal 
                Register within 10 days after making the 
                determination.
                    (C) Increase in dollar amounts.--The 
                Administrator may increase the dollar amounts 
                set forth in section 70112(a)(3)(A) of title 
                49, United States Code, for the purpose of 
                applying that section under this section to a 
                developer after consultation with the 
                Comptroller General and such experts and 
                consultants as may be appropriate, and after 
                publishing notice of the increase in the 
                Federal Register not less than 180 days before 
                the increase goes into effect. The 
                Administrator shall make available for public 
                inspection, not later than the date of 
                publication of such notice, a complete record 
                of any correspondence received by the 
                Administration, and a transcript of any 
                meetings in which the Administration 
                participated, regarding the proposed increase.
                    (D) Safety review required before 
                administrator provides insurance.--The 
                Administrator may not provide liability 
                insurance or indemnification under subsection 
                (a) unless the developer establishes to the 
                satisfaction of the Administrator that 
                appropriate safety procedures and practices are 
                being followed in the development of the 
                experimental aerospace vehicle.
            (3) No indemnification without cross-waiver.--
        Notwithstanding subsection (a), the Administrator may 
        not indemnify a developer of an experimental aerospace 
        vehicle under this section unless there is an agreement 
        between the Administration and the developer described 
        in subsection (c).
            (4) Application of certain procedures.--If the 
        Administrator requests additional appropriations to 
        make payments under this section, like the payments 
        that may be made under section 308(b) of the National 
        Aeronautics and Space Act of 1958 (42 U.S.C. 2458b(b)), 
        then the request for those appropriations shall be made 
        in accordance with the procedures established by 
        subsections (d) and (e) of section 70113 of title 49, 
        United States Code.
    (c) Cross-Waivers.--
            (1) Administrator authorized to waive.--The 
        Administrator, on behalf of the United States, and its 
        departments, agencies, and related entities, may 
        reciprocally waive claims with a developer and with the 
        related entities of that developer under which each 
        party to the waiver agrees to be responsible, and 
        agrees to ensure that its own related entities are 
        responsible, for damage or loss to its property for 
        which it is responsible, or for losses resulting from 
        any injury or death sustained by its own employees or 
        agents, as a result of activities connected to the 
        agreement or use of the experimental aerospace vehicle.
            (2) Limitations.--
                    (A) Claims.--A reciprocal waiver under 
                paragraph (1) may not preclude a claim by any 
                natural person (including, but not limited to, 
                a natural person who is an employee of the 
                United States, the developer, or the 
                developer's subcontractors) or that natural 
                person's estate, survivors, or subrogees for 
                injury or death, except with respect to a 
                subrogee that is a party to the waiver or has 
                otherwise agreed to be bound by the terms of 
                the waiver.
                    (B) Liability for negligence.--A reciprocal 
                waiver under paragraph (1) may not absolve any 
                party of liability to any natural person 
                (including, but not limited to, a natural 
                person who is an employee of the United States, 
                the developer, or the developer's 
                subcontractors) or such a natural person's 
                estate, survivors, or subrogees for negligence, 
                except with respect to a subrogee that is a 
                party to the waiver or has otherwise agreed to 
                be bound by the terms of the waiver.
                    (C) Indemnification for damages.--A 
                reciprocal waiver under paragraph (1) may not 
                be used as the basis of a claim by the 
                Administration or the developer for 
                indemnification against the other for damages 
                paid to a natural person, or that natural 
                person's estate, survivors, or subrogees, for 
                injury or death sustained by that natural 
                person as a result of activities connected to 
                the agreement or use of the experimental 
                aerospace vehicle.
            (3) Effect on previous waivers.--Subsection (c) 
        applies to any waiver of claims entered into by the 
        Administration without regard to whether it was entered 
        into before, on, or after the date of enactment of this 
        Act.
    (d) Definitions.--In this section:
            (1) Administration.--The term ``Administration'' 
        means the National Aeronautics and Space 
        Administration.
            (2) Administrator.--The term ``Administrator'' 
        means the Administrator of the National Aeronautics and 
        Space Administration.
            (3) Common terms.--Any term used in this section 
        that is defined in the National Aeronautics and Space 
        Act of 1958 (42 U.S.C. 2451 et seq.) has the same 
        meaning in this section as when it is used in that Act.
            (4) Developer.--The term ``developer'' means a 
        United States person (other than a natural person) 
        who--
                    (A) is a party to an agreement that was in 
                effect before the date of enactment of this Act 
                with the Administration for the purpose of 
                developing new technology for an experimental 
                aerospace vehicle;
                    (B) owns or provides property to be flown 
                or situated on that vehicle; or
                    (C) employs a natural person to be flown on 
                that vehicle.
            (5) Experimental aerospace vehicle.--The term 
        ``experimental aerospace vehicle'' means an object 
        intended to be flown in, or launched into, suborbital 
        flight for the purpose of demonstrating technologies 
        necessary for a reusable launch vehicle, developed 
        under an agreement between the Administration and a 
        developer that was in effect before the date of 
        enactment of this Act.
            (6) Related entity.--The term ``related entity'' 
        includes a contractor or subcontractor at any tier, a 
        supplier, a grantee, and an investigator or detailee.
    (e) Relationship to Other Laws.--
            (1) Section 308 of national aeronautics and space 
        act of 1958.--This section does not apply to any 
        object, transaction, or operation to which section 308 
        of the National Aeronautics and Space Act of 1958 (42 
        U.S.C. 2458b) applies.
            (2) Chapter 701 of title 49, united states code.--
        The Administrator may not provide indemnification to a 
        developer under this section for launches subject to 
        license under section 70117(g)(1) of title 49, United 
        States Code.
    (f) Termination.--
            (1) In general.--The provisions of this section 
        shall terminate on December 31, 2002, except that the 
        Administrator may extend the termination date to a date 
        not later than September 30, 2005, if the Administrator 
        determines that such an extension is necessary to cover 
        the operation of an experimental aerospace vehicle.
            (2) Effect of termination on agreements.--The 
        termination of this section does not terminate or 
        otherwise affect a cross-waiver agreement, insurance 
        agreement, indemnification agreement, or any other 
        agreement entered into under this section except as may 
        be provided in that agreement.
    Sec. 432. Vietnam Veterans Allotment. The Alaska Native 
Claims Settlement Act (43 U.S.C. 1601 et seq.) is amended by 
adding at the end:


    ``open season for certain alaska native veterans for allotments


    ``Sec. 41. (a) In General.--(1) During the eighteen month 
period following promulgation of implementing rules pursuant to 
subsection (e), a person described in subsection (b) shall be 
eligible for an allotment of not more than two parcels of 
federal land totaling 160 acres or less under the Act of May 
17, 1906 (chapter 2469; 34 Stat. 197), as such Act was in 
effect before December 18, 1971.
    ``(2) Allotments may be selected only from lands that were 
vacant, unappropriated, and unreserved on the date when the 
person eligible for the allotment first used and occupied those 
lands.
    ``(3) The Secretary may not convey allotments containing 
any of the following--
            ``(A) lands upon which a native or non-native 
        campsite is located, except for a campsite used 
        primarily by the person selecting the allotment;
            ``(B) lands selected by, but not conveyed to, the 
        State of Alaska pursuant to the Alaska Statehood Act or 
        any other provision of law;
            ``(C) lands selected by, but not conveyed to, a 
        Village or Regional Corporation;
            ``(D) lands designated as wilderness by statute;
            ``(E) acquired lands;
            ``(F) lands containing a building, permanent 
        structure, or other development owned or controlled by 
        the United States, another unit of government, or a 
        person other than the person selecting the allotment;
            ``(G) lands withdrawn or reserved for national 
        defense purposes other than National Petroleum Reserve-
        Alaska;
            ``(H) National Forest Lands; and
            ``(I) lands selected or claimed, but not conveyed, 
        under a public land law, including but not limited to 
        the following:
                    ``(1) Lands within a recorded mining claim.
                    ``(2) Home sites.
                    ``(3) Trade and Manufacturing sites.
                    ``(4) Reindeer sites and Reindeer 
                headquarters sites.
                    ``(5) Cemetery sites.
    ``(4) A person who qualifies for an allotment on lands 
prohibited from conveyance by a provision of subsection (a)(3) 
may select an alternative allotment from the following lands 
located within the geographic boundaries of the same Regional 
Corporation as the excluded allotment--
            ``(A) lands withdrawn pursuant to section 11(a)(1) 
        of this Act which were not selected, or were 
        relinquished after selection;
            ``(B) lands contiguous to the outer boundary of 
        lands withdrawn pursuant to section 11(a)(1)(C) of this 
        Act, except lands excluded from selection by a 
        provision of subsection (a)(3) and lands within a 
        National Park; and
            ``(C) vacant, unappropriated and unreserved lands.
    ``(5) After consultation with a person entitled to an 
allotment within a Conservation System Unit, the Secretary may 
convey alternative lands of equal acreage, including lands 
within a Conservation System Unit, to that person if the 
Secretary determines that the allotment would be incompatible 
with a purpose for which the Conservation System Unit was 
established.
    ``(6) All conveyances under this section shall--
            ``(A) be subject to valid existing rights, 
        including any right of the United States to income 
        derived, directly or indirectly, from a lease, license, 
        permit, right-of-way or easement; and
            ``(B) reserve to the United States deposits of oil, 
        gas and coal, together with the right to explore, mine, 
        and remove these minerals, on lands which the Secretary 
        determines to be prospectively valuable for 
        development.
    ``(b) Eligible Person.--(1) A person is eligible to select 
an allotment under this section if that person--
            ``(A) would have been eligible for an allotment 
        under the Act of May 17, 1906 (chapter 2469; 34 Stat. 
        197), as that Act was in effect before December 18, 
        1971; and
            ``(B) is a veteran who served during the period 
        between January 1, 1969 and December 31, 1971 and--
                    ``(i) served at least 6 months between 
                January 1, 1969 and June 2, 1971; or
                    ``(ii) enlisted or was drafted into 
                military service after June 2, 1971 but before 
                December 3, 1971.
    ``(2) The personal representative of the estate of a 
decedent who was eligible under subsection (b)(1) may, for the 
benefit of the heirs, select an allotment if, during the period 
specified in subsection (b)(1)(B), the decedent--
            ``(A) was killed in action;
            ``(B) was wounded in action and subsequently died 
        as a direct consequence of that wound, as determined by 
        the Department of Veterans Affairs; or
            ``(C) died while a prisoner of war.
    ``(3) No person who received an allotment or has a pending 
allotment under the Act of May 17, 1906 may receive an 
allotment under this section.
    ``(c) Study and Report.--(1) The Secretary of the Interior 
shall conduct a study to identify and assess the circumstances 
of veterans of the Vietnam era who--
            ``(A) served during a period other than that 
        specified in subsection (b)(1)(B);
            ``(B) were eligible for an allotment under the Act 
        of May 17, 1906; and
            ``(C) did not apply for an allotment under that 
        Act.
    ``(2) The Secretary shall, within one year of enactment of 
this section, issue a written report on the study, including 
findings and recommendations, to the Committee on 
Appropriations and the Committee on Energy and Natural 
Resources in the Senate and the Committee on Appropriations and 
the Committee on Resources in the House of Representatives.
    ``(d) Definitions.--For the purposes of this section, the 
terms `veteran' and `Vietnam era' have the meanings given those 
terms by paragraphs (2) and (29), respectively, of section 101 
of title 38, United States Code.
    ``(e) Regulations.--No later than 18 months after enactment 
of this section, the Secretary of the Interior shall 
promulgate, after consultation with Alaska Natives groups, 
rules to carry out this section.''.
    Sec. 433. The Administrator of the National Aeronautics and 
Space Administration shall develop and deliver to the House and 
Senate Committees on Appropriations, no later than 60 days 
after the date of enactment of this Act, a study of alternative 
approaches whereby NASA could contract with a Russian entity or 
entities for goods and services related to the International 
Space Station. The study shall evaluate, at a minimum, 
government-to-government, government-to-industry, and industry-
to-industry arrangements. The study shall evaluate the pros and 
cons of each possible approach, addressing the following 
requirements: (1) ensure that NASA receives value for each 
dollar spent; (2) ensure that the funds provided can be 
audited; (3) define appropriate milestones; and, (4) adhere to 
all relevant technology transfer and export control laws.
    Sec. 434. The National Aeronautics and Space Administration 
Lewis Research Center in Cleveland, Ohio, shall be redesignated 
as the ``National Aeronautics and Space Administration John H. 
Glenn Research Center at Lewis Field''. Any reference in a law, 
map, regulation, document, paper, or other record of the United 
States to the National Aeronautics and Space Administration 
Lewis Research Center in Ohio shall be deemed to be a reference 
to the ``National Aeronautics and Space Administration John H. 
Glenn Research Center at Lewis Field''.
    Sec. 435. The proposed Amendments to Accounting for 
Property, Plant, and Equipment (February 1998) (Amending 
Statements of Federal Financial Accounting Standards Nos. 6 and 
8, ``Accounting for Property, Plant, and Equipment'' and 
``Supplementary Stewardship Reporting'') may be adopted without 
the prior notification and waiting period required by section 
307 of the Chief Financial Officers Act of 1990 (Public Law 
101-576).

       TITLE V--PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM

SEC. 501. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This title may be cited as the ``Quality 
Housing and Work Responsibility Act of 1998''.
    (b) Table of Contents.--The table of contents for this 
title is as follows:

       TITLE V--PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM

Sec. 501. Short title and table of contents.
Sec. 502. Findings and purposes.
Sec. 503. Effective date and regulations.

                     Subtitle A--General Provisions

Sec. 505. Declaration of policy and public housing agency organization.
Sec. 506. Definitions.
Sec. 507. Minimum rent.
Sec. 508. Determination of adjusted income and median income.
Sec. 509. Family self-sufficiency program.
Sec. 510. Prohibition on use of funds.
Sec. 511. Public housing agency plan.
Sec. 512. Community service and family self-sufficiency requirements.
Sec. 513. Income targeting.
Sec. 514. Repeal of Federal preferences.
Sec. 515. Joint ventures and consortia of public housing agencies; 
          repeal of energy conservation provisions.
Sec. 516. Public housing agency mortgages and security interests.
Sec. 517. Mental health action plan.

                       Subtitle B--Public Housing

                Part 1--Capital and Operating Assistance

Sec. 518. Contributions for lower income housing projects.
Sec. 519. Public housing capital and operating funds.
Sec. 520. Total development costs.
Sec. 521. Sanctions for improper use of amounts.
Sec. 522. Repeal of modernization fund.

              Part 2--Admissions and Occupancy Requirements

Sec. 523. Family choice of rental payment.
Sec. 524. Occupancy by police officers and over-income families.
Sec. 525. Site-based waiting lists.
Sec. 526. Pet ownership.

    Part 3--Management, Homeownership, and Demolition and Disposition

Sec. 529. Contract provisions.
Sec. 530. Housing quality requirements.
Sec. 531. Demolition and disposition of public housing.
Sec. 532. Resident councils and resident management corporations.
Sec. 533. Conversion of public housing to vouchers; repeal of family 
          investment centers.
Sec. 534. Transfer of management of certain housing to independent 
          manager at request of residents.
Sec. 535. Demolition, site revitalization, replacement housing, and 
          tenant-based assistance grants for projects.
Sec. 536. Homeownership.
Sec. 537. Required conversion of distressed public housing to tenant-
          based assistance.
Sec. 538. Linking services to public housing residents.
Sec. 539. Mixed-finance public housing.

        Subtitle C--Section 8 Rental and Homeownership Assistance

Sec. 545. Merger of certificate and voucher programs.
Sec. 546. Public housing agencies.
Sec. 547. Administrative fees.
Sec. 548. Law enforcement and security personnel in assisted housing.
Sec. 549. Advance notice to tenants of expiration, termination, or owner 
          nonrenewal of assistance contract.
Sec. 550. Technical and conforming amendments.
Sec. 551. Funding and allocation.
Sec. 552. Treatment of common areas.
Sec. 553. Portability.
Sec. 554. Leasing to voucher holders.
Sec. 555. Homeownership option.
Sec. 556. Renewals.
Sec. 557. Manufactured housing demonstration program.
Sec. 558. Authorizations of appropriations.
Sec. 559. Rulemaking and implementation.

           Subtitle D--Home Rule Flexible Grant Demonstration

Sec. 561. Home rule flexible grant demonstration program.

   Subtitle E--Accountability and Oversight of Public Housing Agencies

Sec. 563. Study of alternative methods for evaluating public housing 
          agencies.
Sec. 564. Public housing management assessment program.
Sec. 565. Expansion of powers for dealing with public housing agencies 
          in substantial default.
Sec. 566. Audits.
Sec. 567. Advisory council for housing authority of New Orleans.
Sec. 568. Treatment of troubled PHA's.

     Subtitle F--Safety and Security in Public and Assisted Housing

Sec. 575. Provisions applicable only to public housing and section 8 
          assistance.
Sec. 576. Screening of applicants for federally assisted housing.
Sec. 577. Termination of tenancy and assistance for illegal drug users 
          and alcohol abusers in federally assisted housing.
Sec. 578. Ineligibility of dangerous sex offenders for admission to 
          public housing.
Sec. 579. Definitions.

               Subtitle G--Repeals and Related Provisions

Sec. 581. Annual report.
Sec. 582. Repeals relating to public housing and section 8 programs.
Sec. 583. Public housing flexibility in CHAS.
Sec. 584. Use of American products.
Sec. 585. GAO study on housing assistance program costs.
Sec. 586. Amendments to Public and Assisted Housing Drug Elimination Act 
          of 1990.
Sec. 587. Review of drug elimination program contracts.
Sec. 588. Prohibition on use of assistance for employment relocation 
          activities.
Sec. 589. Treatment of occupancy standards.
Sec. 590. Income eligibility for HOME and CDBG programs.
Sec. 591. Report on single family and multifamily homes.
Sec. 592. Use of assisted housing by aliens.
Sec. 593. Protection of senior homeowners under reverse mortgage 
          program.
Sec. 594. Housing counseling.
Sec. 595. Native American housing assistance.
Sec. 596. CDBG public services cap.
Sec. 597. Moderate rehabilitation program.
Sec. 598. National cities in schools program.
Sec. 599. Tenant participation in multifamily housing projects.
Sec. 599A. Clarification regarding recreational vehicles.
Sec. 599B. Determination of low-income eligibility for homeownership 
          assistance.
Sec. 599C. Amendments to rural housing programs.
Sec. 599D. Reauthorization of national flood insurance program.
Sec. 599E. Assistance for self-help housing providers.
Sec. 599F. Special mortgage insurance assistance.
Sec. 599G. Rehabilitation demonstration grant program.
Sec. 599H. Assistance for certain localities.

SEC. 502. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) there exists throughout the Nation a need for 
        decent, safe, and affordable housing;
            (2) the inventory of public housing units owned, 
        assisted, or operated by public housing agencies, an 
        asset in which the Federal Government has invested over 
        $90,000,000,000, has traditionally provided rental 
        housing that is affordable to low-income persons;
            (3) despite serving this critical function, the 
        public housing system is plagued by a series of 
        problems, including the concentration of very poor 
        people in very poor neighborhoods and disincentives for 
        economic self-sufficiency;
            (4) the Federal method of overseeing every aspect 
        of public housing by detailed and complex statutes and 
        regulations has aggravated the problem and has placed 
        excessive administrative burdens on public housing 
        agencies; and
            (5) the interests of low-income persons, and the 
        public interest, will best be served by a reformed 
        public housing program that--
                    (A) consolidates many public housing 
                programs into programs for the operation and 
                capital needs of public housing;
                    (B) streamlines program requirements;
                    (C) vests in public housing agencies that 
                perform well the maximum feasible authority, 
                discretion, and control with appropriate 
                accountability to public housing residents, 
                localities, and the general public; and
                    (D) rewards employment and economic self-
                sufficiency of public housing residents.
    (b) Purposes.--The purpose of this title is to promote 
homes that are affordable to low-income families in safe and 
healthy environments, and thereby contribute to the supply of 
affordable housing, by--
            (1) deregulating and decontrolling public housing 
        agencies, thereby enabling them to perform as property 
        and asset managers;
            (2) providing for more flexible use of Federal 
        assistance to public housing agencies, allowing the 
        authorities to leverage and combine assistance amounts 
        with amounts obtained from other sources;
            (3) facilitating mixed income communities and 
        decreasing concentrations of poverty in public housing;
            (4) increasing accountability and rewarding 
        effective management of public housing agencies;
            (5) creating incentives and economic opportunities 
        for residents of dwelling units assisted by public 
        housing agencies to work, become self-sufficient, and 
        transition out of public housing and federally assisted 
        dwelling units;
            (6) consolidating the voucher and certificate 
        programs for rental assistance under section 8 of the 
        United States Housing Act of 1937 into a single market-
        driven program that will assist in making tenant-based 
        rental assistance under such section more successful at 
        helping low-income families obtain affordable housing 
        and will increase housing choice for low-income 
        families; and
            (7) remedying the problems of troubled public 
        housing agencies and replacing or revitalizing severely 
        distressed public housing projects.

SEC. 503. EFFECTIVE DATE AND REGULATIONS.

    (a) In General.--The amendments under this title are made 
on the date of the enactment of this Act, but this title shall 
take effect, and the amendments made by this title shall apply 
beginning upon, October 1, 1999, except--
            (1) as otherwise specifically provided in this 
        title; or
            (2) as otherwise specifically provided in any 
        amendment made by this title.
The Secretary may, by notice, implement any provision of this 
title or any amendment made by this title before such date, 
except to the extent that such provision or amendment 
specifically provides otherwise.
    (b) Savings Provision.--Notwithstanding any amendment under 
this title that is made (in accordance with subsection (a)) on 
the date of the enactment of this Act but applies beginning on 
October 1, 1999, the provisions of law amended by such 
amendment, as such provisions were in effect immediately before 
the making of such amendment, shall continue to apply during 
the period beginning on the date of the enactment of this Act 
and ending upon October 1, 1999, unless otherwise specifically 
provided by this title.
    (c) Technical Recommendations.--Not later than 9 months 
after the date of the enactment of this Act, the Secretary 
shall submit to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Banking and 
Financial Services of the House of Representatives, recommended 
technical and conforming legislative changes necessary to carry 
out this title and the amendments made by this title.
    (d) List of Obsolete Documents.--Not later than October 1, 
1999, the Secretary of Housing and Urban Development shall 
cause to be published in the Federal Register a list of all 
rules, regulations, and orders (including all handbooks, 
notices, and related requirements) pertaining to public housing 
or section 8 tenant-based programs issued or promulgated under 
the United States Housing Act of 1937 before the date of the 
enactment of this Act that are or will be obsolete because of 
the enactment of this Act or are otherwise obsolete.
    (e) Protection of Certain Regulations.--No provision of 
this title may be construed to repeal the regulations of the 
Secretary regarding tenant participation and tenant 
opportunities in public housing (24 C.F.R. 964).
    (g) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

                     Subtitle A--General Provisions

SEC. 505. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY ORGANIZATION.

    Section 2 of the United States Housing Act of 1937 (42 
U.S.C. 1437) is amended to read as follows:

``SEC. 2. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY ORGANIZATION.

    ``(a) Declaration of Policy.--It is the policy of the 
United States--
            ``(1) to promote the general welfare of the Nation 
        by employing the funds and credit of the Nation, as 
        provided in this Act--
                    ``(A) to assist States and political 
                subdivisions of States to remedy the unsafe 
                housing conditions and the acute shortage of 
                decent and safe dwellings for low-income 
                families;
                    ``(B) to assist States and political 
                subdivisions of States to address the shortage 
                of housing affordable to low-income families; 
                and
                    ``(C) consistent with the objectives of 
                this title, to vest in public housing agencies 
                that perform well, the maximum amount of 
                responsibility and flexibility in program 
                administration, with appropriate accountability 
                to public housing residents, localities, and 
                the general public;
            ``(2) that the Federal Government cannot through 
        its direct action alone provide for the housing of 
        every American citizen, or even a majority of its 
        citizens, but it is the responsibility of the 
        Government to promote and protect the independent and 
        collective actions of private citizens to develop 
        housing and strengthen their own neighborhoods;
            ``(3) that the Federal Government should act where 
        there is a serious need that private citizens or groups 
        cannot or are not addressing responsibly; and
            ``(4) that our Nation should promote the goal of 
        providing decent and affordable housing for all 
        citizens through the efforts and encouragement of 
        Federal, State, and local governments, and by the 
        independent and collective actions of private citizens, 
        organizations, and the private sector.
    ``(b) Public Housing Agency Organization.--
            ``(1) Required membership.--Except as provided in 
        paragraph (2), the membership of the board of directors 
        or similar governing body of each public housing agency 
        shall contain not less than 1 member--
                    ``(A) who is directly assisted by the 
                public housing agency; and
                    ``(B) who may, if provided for in the 
                public housing agency plan, be elected by the 
                residents directly assisted by the public 
                housing agency.
            ``(2) Exception.--Paragraph (1) shall not apply to 
        any public housing agency--
                    ``(A) that is located in a State that 
                requires the members of the board of directors 
                or similar governing body of a public housing 
                agency to be salaried and to serve on a full-
                time basis; or
                    ``(B) with less than 300 public housing 
                units, if--
                            ``(i) the agency has provided 
                        reasonable notice to the resident 
                        advisory board of the opportunity of 
                        not less than 1 resident described in 
                        paragraph (1) to serve on the board of 
                        directors or similar governing body of 
                        the public housing agency pursuant to 
                        such paragraph; and
                            ``(ii) within a reasonable time 
                        after receipt by the resident advisory 
                        board established by the agency 
                        pursuant to section 5A(e) of notice 
                        under clause (i), the public housing 
                        agency has not been notified of the 
                        intention of any resident to 
                        participate on the board of directors.
            ``(3) Nondiscrimination.--No person shall be 
        prohibited from serving on the board of directors or 
        similar governing body of a public housing agency 
        because of the residence of that person in a public 
        housing project or status as assisted under section 
        8.''.

SEC. 506. DEFINITIONS.

    Section 3(b) of the United States Housing Act of 1937 (42 
U.S.C. 1437a(b)) is amended as follows:
            (1) Public housing.--In paragraph (1), by inserting 
        after the second sentence the following new sentence: 
        ``The term `public housing' includes dwelling units in 
        a mixed finance project that are assistedby a public 
housing agency with capital or operating assistance.''.
            (2) Single persons.--In paragraph (3)--
                    (A) in subparagraph (A), by striking the 
                third sentence; and
                    (B) in subparagraph (B), in the second 
                sentence, by striking ``regulations of the 
                Secretary'' and inserting ``public housing 
                agency plan''.
            (3) Person with disabilities.--In paragraph (3)(E), 
        by adding after the period at the end the following new 
        sentences: ``Notwithstanding any other provision of 
        law, no individual shall be considered a person with 
        disabilities, for purposes of eligibility for low-
        income housing under this title, solely on the basis of 
        any drug or alcohol dependence. The Secretary shall 
        consult with other appropriate Federal agencies to 
        implement the preceding sentence.''.
            (4) New terms.--Section 3(b) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended by 
        adding at the end the following new paragraphs:
    ``(9) Drug-related criminal activity.--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 such 
term is defined in section 102 of the Controlled Substances 
Act).
    ``(10) Mixed-finance project.--The term `mixed-finance 
project' means a public housing project that meets the 
requirements of section 35.
    ``(11) Public housing agency plan.--The term `public 
housing agency plan' means the plan of a public housing agency 
prepared in accordance with section 5A.
    ``(12) Capital fund.--The term `Capital Fund' means the 
fund established under section 9(d).
    ``(13) Operating fund.--The term `Operating Fund' means the 
fund established under section 9(e).''.

SEC. 507. MINIMUM RENT.

    (a) In General.--Section 3(a) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(a)) is amended by adding at the 
end the following new paragraph:
    ``(3) Minimum rental amount.--
            ``(A) Requirement.--Notwithstanding paragraph (1) 
        of this subsection, the method for rent determination 
        elected pursuant to paragraph (2)(A) of this subsection 
        by a family residing in public housing, section 8(o)(2) 
        of this Act, or section 206(d) of the Housing and 
        Urban-Rural Recovery Act of 1983 (including paragraph 
        (5) of such section), the following entities shall 
        require the following families to pay a minimum monthly 
        rental amount (which amount shall include any amount 
        allowed for utilities) of not more than $50 per month, 
        as follows:
                    ``(i) Each public housing agency shall 
                require the payment of such minimum monthly 
                rental amount, which amount shall be determined 
                by the agency, by--
                            ``(I) each family residing in a 
                        dwelling unit in public housing by the 
                        agency;
                            ``(II) each family who is assisted 
                        under the certificate or moderate 
                        rehabilitation program under section 8; 
                        and
                            ``(III) each family who is assisted 
                        under the voucher program under section 
                        8, and the agency shall reduce the 
                        monthly assistance payment on behalf of 
                        such family as may be necessary to 
                        ensure payment of such minimum monthly 
                        rental amount.
                    ``(ii) The Secretary shall require each 
                family who is assisted under any other program 
                for rental assistance under section 8 to pay 
                such minimum monthly rental amount, which 
                amount shall be determined by the Secretary.
            ``(B) Exception for hardship circumstances.--
                    ``(i) In general.--Notwithstanding 
                subparagraph (A), a public housing agency (or 
                the Secretary, in the case of a family 
                described in subparagraph (A)(ii)) shall 
                immediately grant an exemption from application 
                of the minimum monthly rental under such 
                subparagraph to any family unable to pay such 
                amount because of financial hardship, which 
                shall include situations in which (I) the 
                family has lost eligibility for or is awaiting 
                an eligibility determination for a Federal, 
                State, or local assistance program, including a 
                family that includes a member who is an alien 
                lawfully admitted for permanent residence under 
                the Immigration and Nationality Act who would 
                be entitled to public benefits but for title IV 
                of the Personal Responsibility and Work 
                Opportunity Reconciliation Act of 1996; (II) 
                the family would be evicted as a result of the 
                imposition of the minimum rent requirement 
                under subparagraph (A); (III) the income of the 
                family has decreased because of changed 
                circumstance, including loss of employment; 
                (IV) a death in the family has occurred; and 
                (V) other situations as may be determined by 
                the agency (or the Secretary, in the case of a 
                family described in subparagraph (A)(ii)).
                    ``(ii) Waiting period.--If a resident 
                requests a hardship exemption under this 
                subparagraph and the public housing agency (or 
                the Secretary, in the case of a family 
                described in subparagraph (A)(ii)) reasonably 
                determines the hardship to be of a temporary 
                nature, an exemption shall not be granted 
                during the 90-day period beginning upon the 
                making of a request for the exemption. A 
                resident may not be evicted during such 90-day 
                period for nonpayment of rent. In such a case, 
                if the resident thereafter demonstrates that 
                the financial hardship is of a long-term basis, 
                the agency (or the Secretary) shall 
                retroactively exempt the resident from the 
                applicability of the minimum rent requirement 
                for such 90-day period.''.
    (b) Repeal of Duplicative Provisions.--Section 402 of the 
Balanced Budget Downpayment Act, I (Public Law 104-99; 110 
Stat. 40) is amended by striking subsection (a).
    (c) Conforming Amendment.--The third sentence of section 
3(a)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(a)(1)) is amended by inserting ``and subject to the 
requirement under paragraph (3)'' before the first comma.
    (d) Effective Date.--The amendments under this section are 
made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 508. DETERMINATION OF ADJUSTED INCOME AND MEDIAN INCOME.

    (a) Adjusted Income.--Paragraph (5) of section 3(b) of the 
United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5) is 
amended to read as follows:
    ``(5) Adjusted income.--The term `adjusted income' means, 
with respect to a family, the amount (as determined by the 
public housing agency) of the income of the members of the 
family residing in a dwelling unit or the persons on a lease, 
after any income exclusions as follows:
            ``(A) Mandatory exclusions.--In determining 
        adjusted income, a public housing agency shall exclude 
        from the annual income of a family the following 
        amounts:
                    ``(i) Elderly and disabled families.--$400 
                for any elderly or disabled family.
                    ``(ii) Medical expenses.--The amount by 
                which 3 percent of the annual family income is 
                exceeded by the sum of--
                            ``(I) unreimbursed medical expenses 
                        of any elderly family or disabled 
                        family;
                            ``(II) unreimbursed medical 
                        expenses of any family that is not 
                        covered under subclause (I), except 
                        that this subclause shall apply only to 
                        the extent approved in appropriation 
                        Acts; and
                            ``(III) unreimbursed reasonable 
                        attendant care and auxiliary apparatus 
                        expenses for each handicapped member of 
                        the family, to the extent necessary to 
                        enable any member of such family 
                        (including such handicapped member) to 
                        be employed.
                    ``(iii) Child care expenses.--Any 
                reasonable child care expenses necessary to 
                enable a member of the family to be employed or 
                to further his or her education.
                    ``(iv) Minors, students, and persons with 
                disabilities.--$480 for each member of the 
                family residing in the household (other than 
                the head of the household or his or her spouse) 
                who is less than 18 years of age or is 
                attending school or vocational training on a 
                full-time basis, or who is 18 years of age or 
                older and is a person with disabilities.
                    ``(v) Child support payments.--Any payment 
                made by a member of the family for the support 
                and maintenance of any child who does not 
                reside in the household, except that the amount 
                excluded under this clause may not exceed $480 
                for each child for whom such payment is made; 
                except that this clause shall apply only to the 
                extent approved in appropriations Acts.
                    ``(vi) Spousal support expenses.--Any 
                payment made by a member of the family for the 
                support and maintenance of any spouse or former 
                spouse who does not reside in the household, 
                except that the amount excluded under this 
                clause shall not exceed the lesser of (I) the 
                amount that such family member has a legal 
                obligation to pay, or (II) $550 for each 
                individual for whom such payment is made; 
                except that this clause shall apply only to the 
                extent approved in appropriations Acts.
                    ``(vii) Earned income of minors.--The 
                amount of any earned income of a member of the 
                family who is not--
                            ``(I) 18 years of age or older; and
                            ``(II) the head of the household 
                        (or the spouse of the head of the 
                        household).
            ``(B) Permissive exclusions for public housing.--In 
        determining adjusted income, a public housing agency 
        may, in the discretion of the agency, establish 
        exclusions from the annual income of a family residing 
        in a public housing dwelling unit. Such exclusions may 
        include the following amounts:
                    ``(i) Excessive travel expenses.--Excessive 
                travel expenses in an amount not to exceed $25 
                per family per week, for employment- or 
                education-related travel.
                    ``(ii) Earned income.--An amount of any 
                earned income of the family, established at the 
                discretion of the public housing agency, which 
                may be based on--
                            ``(I) all earned income of the 
                        family,
                            ``(II) the amount earned by 
                        particular members of the family;
                            ``(III) the amount earned by 
                        families having certain 
                        characteristics; or
                            ``(IV) the amount earned by 
                        families or members during certain 
                        periods or from certain sources.
                    ``(iii) Others.--Such other amounts for 
                other purposes, as the public housing agency 
                may establish.''.
    (b) Disallowance of Earned Income From Public Housing Rent 
Determinations.--
            (1) In general.--Section 3 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a) is amended--
                    (A) by striking the undesignated paragraph 
                that follows subsection (c)(3) (as added by 
                section 515(b) of the Cranston-Gonzalez 
                National Affordable Housing Act (Public Law 
                101-625; 104 Stat. 4199)); and
                    (B) by adding at the end the following new 
                subsections:
    ``(d) Disallowance of Earned Income From Rent 
Determinations.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, the rent payable under subsection (a) 
        by a family described in paragraph (3) of this 
        subsection may not be increased as a result of the 
        increased income due to such employment during the 12-
        month period beginning on the date on which the 
        employment is commenced.
            ``(2) Phase-in of rent increases.--Upon the 
        expiration of the 12-month period referred to in 
        paragraph (1), the rent payable by a family described 
        in paragraph (3) may be increased due to the continued 
        employment of the family member described in paragraph 
        (3)(B), except that during the 12-month period 
        beginning upon such expiration the amount of the 
        increase may not be greater than 50 percent of the 
        amount of the total rent increase that would be 
        applicable but for this paragraph.
            ``(3) Eligible families.--A family described in 
        this paragraph is a family--
                    ``(A) that--
                            ``(i) occupies a dwelling unit in a 
                        public housing project; or
                            ``(ii) receives assistance under 
                        section 8; and
                    ``(B)(i) whose income increases as a result 
                of employment of a member of the family who was 
                previously unemployed for 1 or more years;
                    ``(ii) whose earned income increases during 
                the participation of a family member in any 
                family self-sufficiency or other job training 
                program; or
                    ``(iii) who is or was, within 6 months, 
                assisted under any State program for temporary 
                assistance for needy families funded under part 
                A of title IV of the Social Security Act and 
                whose earned income increases.
            ``(4) Applicability.--This subsection and 
        subsection (e) shall apply beginning upon October 1, 
        1999, except that this subsection and subsection (e) 
        shall apply with respect to any family described in 
        paragraph 3(A)(ii) only to the extent provided in 
        advance in appropriations Acts.
    ``(e) Individual Savings Accounts.--
            ``(1) In general.--In lieu of a disallowance of 
        earned income under subsection (d), upon the request of 
        a family that qualifies under subsection (d), a public 
        housing agency may establish an individual savings 
        account in accordance with this subsection for that 
        family.
            ``(2) Deposits to account.--The public housing 
        agency shall deposit in any savings account established 
        under this subsection an amount equal to the total 
        amount that otherwise would be applied to the family's 
        rent payment under subsection (a) as a result of 
        employment.
            ``(3) Withdrawal from account.--Amounts deposited 
        in a savings account established under this subsection 
        may only be withdrawn by the family for the purpose 
        of--
                    ``(A) purchasing a home;
                    ``(B) paying education costs of family 
                members;
                    ``(C) moving out of public or assisted 
                housing; or
                    ``(D) paying any other expense authorized 
                by the public housing agency for the purpose of 
                promoting the economic self-sufficiency of 
                residents of public and assisted housing.''.
            (2) Savings provision.--Notwithstanding the 
        amendment made by paragraph (1), the provisions of the 
        undesignated paragraph at the end of section 3(c)(3) of 
        the United States Housing Act of 1937, as such section 
        was in effect immediately before the enactment of this 
        Act, shall continue to apply until the effective date 
        under section 503 of this Act. Notwithstanding the 
        amendment made by subsection (a) of this section, nor 
        the applicability under section 402(f) of The Balanced 
        Budget Downpayment Act, I (42 U.S.C. 1437a note) of the 
        amendments made by such section 402, nor any repeal of 
        such section 402(f), the provisions of section 
        3(b)(5)(G) of the United States Housing Act of 1937 (42 
        U.S.C. 1437a(b)(5)(G)), as such section was in effect 
        immediately before the date of the enactment of this 
        Act, shall continue to apply until the effective date 
        under section 503 of this Act.
    (c) Median Income.--
            (1) In general.--Section 3(b)(2) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is 
        amended--
                    (A) in the 4th sentence--
                            (i) by striking ``County'' and 
                        inserting ``and Rockland Counties''; 
                        and
                            (ii) by inserting ``each'' before 
                        ``such county'';
                    (B) in the last sentence--
                            (i) by striking ``County'' the 1st 
                        place it appears and inserting ``or 
                        Rockland Counties''; and
                            (ii) by striking ``County'' the 2d 
                        place it appears and inserting ``and 
                        Rockland Counties''; and
                    (C) by adding at the end the following new 
                sentences: ``In determining areas that are 
                designated as difficult development areas for 
                purposes of the low-income housing tax credit, 
                the Secretary shall include Westchester and 
                Rockland Counties, New York, in the New York 
                City metropolitan area.''.
            (2) Applicability.--The amendments made by this 
        paragraph are made on, and shall apply beginning upon, 
        the date of the enactment of this Act.
    (d) Availability of Income Matching Information.--
            (1) Availability.--Section 3 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a), as amended by 
        the preceding provisions of this Act, is further 
        amended by adding at the end the following new 
        subsection:
    ``(f) Availability of Income Matching Information.--
            ``(1) Disclosure to pha.--A public housing agency 
        shall require any family described in paragraph (2) who 
        receives information regarding income, earnings, wages, 
        or unemployment compensation from the Department of 
        Housing and Urban Development pursuant to income 
        verification procedures of the Department to disclose 
        such information, upon receipt of the information, to 
        the public housing agency that owns or operates the 
        public housing dwelling unit in which such family 
        resides or that provides the housing assistance under 
        this Act on behalf of such family, as applicable.
            ``(2) Families covered.--A family described in this 
        paragraph is a family that resides in a dwelling unit--
                    ``(A) that is a public housing dwelling 
                unit; or
                    ``(B) for which tenant-based assistance is 
                provided under section 8.''.
            (2) Protection of applicants and participants.--
        Section 904 of the Stewart B. McKinney Homeless 
        Assistance Amendments Act of 1988 (42 U.S.C. 3544) is 
        amended--
                    (A) in subsection (b)--
                            (i) in paragraph (2), by striking 
                        ``and'' at the end;
                            (ii) in paragraph (3), by striking 
                        the period at the end and inserting ``; 
                        and''; and
                            (iii) by adding at the end the 
                        following new paragraph:
            ``(4) only in the case of an applicant or 
        participant that is a member of a family described in 
        section 3(f)(2) of the United States Housing Act of 
        1937 (42 U.S.C. 1437a(f)(2)), sign an agreement under 
        which the applicant or participant agrees to provide to 
        the appropriate public housing agency the information 
        required under section 3(f)(1) of such Act for the sole 
        purpose of the public housing agency verifying income 
        information pertinent to the applicant's or 
        participant's eligibility or level of benefits, and 
        comply with such agreement.''; and
                    (B) in subsection (c)--
                            (i) in paragraph (2)(A), in the 
                        matter preceding clause (i)--
                                    (I) by inserting before 
                                ``or'' the first place it 
                                appears the following: ``, 
                                pursuant to section 3(d)(1) of 
                                the United States Housing Act 
                                of 1937 from the applicant or 
                                participant,''; and
                                    (II) by inserting ``or 
                                3(d)(1)'' after ``such section 
                                303(i)''; and
                            (ii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                inserting ``, section 3(d)(1) 
                                of the United States Housing 
                                Act of 1937,'' after ``Social 
                                Security Act'';
                                    (II) in subparagraph (A), 
                                by inserting ``or agreement, as 
                                applicable,'' after 
                                ``consent'';
                                    (III) in subparagraph (B), 
                                by inserting ``section 3(d)(1) 
                                of the United States Housing 
                                Act of 1937,'' after ``Social 
                                Security Act,''; and
                                    (IV) in subparagraph (B), 
                                by inserting `` such section 
                                3(d)(1),'' after ``such section 
                                303(i),'' each place it 
                                appears.

SEC. 509. FAMILY SELF-SUFFICIENCY PROGRAM.

    (a) In General.--Section 23 of the United States Housing 
Act of 1937 (42 U.S.C. 1437u(b)) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by 
                        striking ``and'' at the end;
                            (ii) in subparagraph (B), by 
                        striking the period at the end and 
                        inserting ``, subject to the 
                        limitations in paragraph (4); and''; 
                        and
                            (iii) by adding at the end the 
                        following new subparagraph:
                    ``(C) effective on the date of the 
                enactment of the Quality Housing and Work 
                Responsibility Act of 1998, to the extent an 
                agency is not required to carry out a program 
                pursuant to subparagraph (B) of this paragraph 
                and paragraph (4), may carry out a local Family 
                Self-Sufficiency program under this section.'';
                    (B) in paragraph (3), by striking ``Each'' 
                and inserting ``Subject to paragraph (4), 
                each'';
                    (C) by redesignating paragraph (4) as 
                paragraph (5); and
                    (D) by inserting after paragraph (3) the 
                following new paragraph:
            ``(4) Termination of requirement to expand 
        program.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law, a public housing agency 
                that receives incremental assistance under 
                subsection (b) or (o) of section 8 or that 
                makes available new public housing dwelling 
                units shall not be required, after the 
                enactment of the Quality Housing and Work 
                Responsibility Act of 1998, to provide 
                assistance under a local Family Self-
                Sufficiency program under this section to any 
                families not required to be assisted under 
                subparagraph (B) of this paragraph.
                    ``(B) Continuation of existing 
                obligations.--
                            ``(i) In general.--Each public 
                        housing agency that, before the 
                        enactment of the Quality Housing and 
                        Work Responsibility Act of 1998, was 
                        required under this section to carry 
                        out a local Family Self-Sufficiency 
                        program shall continue to operate such 
                        local program for the number of 
                        families determined under paragraph 
                        (3), subject only to the availability 
                        under appropriations Acts of sufficient 
                        amounts for housing assistance.
                            ``(ii) Reduction.--The number of 
                        families for which an agency is 
                        required under clause (i) to operate 
                        such local program shall be decreased 
                        by one for each family that, after 
                        enactment of the Quality Housing and 
                        Work Responsibility Act of 1998, 
                        fulfills its obligations under the 
                        contract of participation.'';
            (2) in subsection (d), by striking the second 
        paragraph that is designated as paragraph (3) (relating 
        to use of escrow savings accounts for section 8 
        homeownership; as added by section 185(b) of the 
        Housing and Community Development Act of 1992 (Public 
        Law 102-550; 106 Stat. 3747)); and
            (3) in subsection (f)(1), by inserting ``carrying 
        out a local program under this section'' after ``Each 
        public housing agency''.
    (b) Applicability.--The amendments made by this subsection 
are made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 510. PROHIBITION ON USE OF FUNDS.

    Section 5 of the United States Housing Act of 1937 (42 
U.S.C. 1437c)) is amended by adding at the end the following 
new subsection:
    ``(l) Prohibition on Use of Funds.--None of the funds made 
available to the Department of Housing and Urban Development to 
carry out this Act, which are obligated to State or local 
governments, public housing agencies, housing finance agencies, 
or other public or quasi-public housing agencies, shall be used 
to indemnify contractors or subcontractors of the government or 
agency against costs associated with judgments of infringement 
of intellectual property rights.''.

SEC. 511. PUBLIC HOUSING AGENCY PLAN.

    (a) In General.--Title I of the United States Housing Act 
of 1937 (42 U.S.C. 1437 et seq.) is amended by inserting after 
section 5 the following new section:

``SEC. 5A. PUBLIC HOUSING AGENCY PLANS.

    ``(a) 5-Year Plan.--
            ``(1) In general.--Subject to paragraph (2), not 
        less than once every 5 fiscal years, each public 
        housing agency shall submit to the Secretary a plan 
        that includes, with respect to the 5 fiscal years 
        immediately following the date on which the plan is 
        submitted--
                    ``(A) a statement of the mission of the 
                public housing agency for serving the needs of 
                low-income and very low-income families in the 
                jurisdiction of the public housing agency 
                during such fiscal years; and
                    ``(B) a statement of the goals and 
                objectives of the public housing agency that 
                will enable the public housing agency to serve 
                the needs identified pursuant to subparagraph 
                (A) during those fiscal years.
            ``(2) Initial plan.--The initial 5-year plan 
        submitted by a public housing agency under this 
        subsection shall be submitted for the 5-year period 
        beginning on October 1, 1999, or the first fiscal year 
        thereafter for which the public housing agency 
        initially receives assistance under this Act.
    ``(b) Annual Plan.--
            ``(1) In general.--Effective beginning upon October 
        1, 1999, each public housing agency shall submit to the 
        Secretary an annual public housing agency plan under 
        this subsection for each fiscal year for which the 
        public housing agency receives assistance under section 
        8(o) or 9.
            ``(2) Updates.--For each fiscal year after the 
        initial submission of an annual plan under this 
        subsection by a public housing agency, the public 
        housing agency may comply with requirements for 
        submission of a plan under this subsection by 
        submitting an update of the plan for the fiscal year.
    ``(c) Procedures.--
            ``(1) In general.--The Secretary shall establish 
        requirements and procedures for submission and review 
        of plans, including requirements for timing and form of 
        submission, and for the contents of such plans.
            ``(2) Contents.--The procedures established under 
        paragraph (1) shall provide that a public housing 
        agency shall--
                    ``(A) in developing the plan consult with 
                the resident advisory board established under 
                subsection (e); and
                    ``(B) ensure that the plan under this 
                section is consistent with the applicable 
                comprehensive housing affordability strategy 
                (or any consolidated plan incorporating such 
                strategy) for the jurisdiction in which the 
                public housing agency is located, in accordance 
                with title I of the Cranston-Gonzalez National 
                Affordable Housing Act, and contains a 
                certification by the appropriate State or local 
                official that the plan meets the requirements 
                of this paragraph and a description of the 
                manner in which the applicable contents of the 
                public housing agency plan are consistent with 
                the comprehensive housing affordability 
                strategy.
    ``(d) Contents.--An annual public housing agency plan under 
subsection (b) for a public housing agency shall contain the 
following information relating to the upcoming fiscal year for 
which the assistance under this Act is to be made available:
            ``(1) Needs.--A statement of the housing needs of 
        low-income and very low-income families residing in the 
        jurisdiction served by the public housing agency, and 
        of other low-income and very low-income families on the 
        waiting list of the agency (including housing needs of 
        elderly families and disabled families), and the means 
        by which the public housing agency intends, to the 
        maximum extent practicable, to address those needs.
            ``(2) Financial resources.--A statement of 
        financial resources available to the agency and the 
        planned uses of those resources.
            ``(3) Eligibility, selection, and admissions 
        policies.--A statement of the policies governing 
        eligibility, selection, admissions (including any 
        preferences), assignment, and occupancy of families 
        with respect to public housing dwelling units and 
        housing assistance under section 8(o), including--
                    ``(A) the procedures for maintaining 
                waiting lists for admissions to public housing 
                projects of the agency, which may include a 
                system of site-based waiting lists under 
                section 6(r); and
                    ``(B) the admissions policy under section 
                16(a)(3)(B) for deconcentration of lower-income 
                families.
            ``(4) Rent determination.--A statement of the 
        policies of the public housing agency governing rents 
        charged for public housing dwelling units and rental 
        contributions of families assisted under section 8(o).
            ``(5) Operation and management.--A statement of the 
        rules, standards, and policies of the public housing 
        agency governing maintenance and management of housing 
        owned, assisted, or operated by the public housing 
        agency (which shall include measures necessary for the 
        prevention or eradication of pest infestation, 
        including by cockroaches), and management of the public 
        housing agency and programs of the public housing 
        agency.
            ``(6) Grievance procedure.--A statement of the 
        grievance procedures of the public housing agency.
            ``(7) Capital improvements.--With respect to public 
        housing projects owned, assisted, or operated by the 
        public housing agency, a plan describing the capital 
        improvements necessary to ensure long-term physical and 
        social viability of the projects.
            ``(8) Demolition and disposition.--With respect to 
        public housing projects owned by the public housing 
        agency--
                    ``(A) a description of any housing for 
                which the PHA will apply for demolition or 
                disposition under section 18; and
                    ``(B) a timetable for the demolition or 
                disposition.
            ``(9) Designation of housing for elderly and 
        disabled families.--With respect to public housing 
        projects owned, assisted, or operated by the public 
        housing agency, a description of any projects (or 
        portions thereof) that the public housing agency has 
        designated or will apply for designation for occupancy 
        by elderly and disabled families in accordance with 
        section 7.
            ``(10) Conversion of public housing.--With respect 
        to public housing owned by a public housing agency--
                    ``(A) a description of any building or 
                buildings that the public housing agency is 
                required to convert to tenant-based assistance 
                under section 33 or that the public housing 
                agency plans to voluntarily convert under 
                section 22;
                    ``(B) an analysis of the projects or 
                buildings required to be converted under 
                section 33; and
                    ``(C) a statement of the amount of 
                assistance received under this Act to be used 
                for rental assistance or other housing 
                assistance in connection with such conversion.
            ``(11) Homeownership.--A description of any 
        homeownership programs of the agency under section 8(y) 
        or for which the public housing agency has applied or 
        will apply for approval under section 32.
            ``(12) Community service and self-sufficiency.--A 
        description of--
                    ``(A) any programs relating to services and 
                amenities provided or offered to assisted 
                families;
                    ``(B) any policies or programs of the 
                public housing agency for the enhancement of 
                the economic and social self-sufficiency of 
                assisted families;
                    ``(C) how the public housing agency will 
                comply with the requirements of subsections (c) 
                and (d) of section 12 (relating to community 
                service and treatment of income changes 
                resulting from welfare program requirements).
            ``(13) Safety and crime prevention.--A plan 
        established by the public housing agency, which shall 
        be subject to the following requirements:
                    ``(A) Safety measures.--The plan shall 
                provide, on a project-by-project or 
                jurisdiction-wide basis, for measures to ensure 
                the safety of public housing residents.
                    ``(B) Establishment.--The plan shall be 
                established in consultation with the police 
                officer or officers in command for the 
                appropriate precinct or police department.
                    ``(C) Content.--The plan shall describe the 
                need for measures to ensure the safety of 
                public housing residents and for crime 
                prevention measures, describe any such 
                activities conducted or to be conducted by the 
                agency, and provide for coordination between 
                the agency and the appropriate police precincts 
                for carrying out such measures and activities.
                    ``(D) Secretarial action.--If the Secretary 
                determines, at any time, that the security 
                needs of a project are not being adequately 
                addressed by the plan, or that the local police 
                precinct is not complying with the plan, the 
                Secretary may mediate between the public 
                housing agency and the local precinct to 
                resolve any issues of conflict.
            ``(14) Pets.--The requirements of the agency, 
        pursuant to section 31, relating to pet ownership in 
        public housing.
            ``(15) Civil rights certification.--A certification 
        by the public housing agency that the public housing 
        agency will carry out the public housing agency plan in 
        conformity with title VI of the Civil Rights Act of 
        1964, the Fair Housing Act, section 504 of the 
        Rehabilitation Act of 1973, and title II of the 
        Americans with Disabilities Act of 1990, and will 
        affirmatively further fair housing.
            ``(16) Annual audit.--The results of the most 
        recent fiscal year audit of the public housing agency 
        under section 5(h)(2).
            ``(17) Asset management.--A statement of how the 
        agency will carry out its asset management functions 
        with respect to the public housing inventory of the 
        agency, including how the agency will plan for the 
        long-term operating, capital investment, 
        rehabilitation, modernization, disposition, and other 
        needs for such inventory.
            ``(18) Other.--Any other information required by 
        law to be included in a public housing agency plan.
    ``(e) Resident Advisory Board.--
            ``(1) In general.--Except as provided in paragraph 
        (3), each public housing agency shall establish 1 or 
        more resident advisory boards in accordance with this 
        subsection, the membership of which shall adequately 
        reflect and represent the residents assisted by the 
        public housing agency.
            ``(2) Functions.--Each resident advisory board 
        established under this subsection by a public housing 
        agency shall assist and make recommendations regarding 
        the development of the public housing agency plan for 
        the agency. The agency shall consider the 
        recommendations of the resident advisory boards in 
        preparing the final public housing agency plan, and 
        shall include, in the public housing agency plan 
        submitted to the Secretary under this section, a copy 
        of the recommendations and a description of the manner 
        in which the recommendations were addressed.
            ``(3) Waiver.--The Secretary may waive the 
        requirements of this subsection with respect to the 
        establishment of resident advisory boards for a public 
        housing agency if the agency demonstrates to the 
        satisfaction of the Secretary that there exist resident 
        councils or other resident organizations of the public 
        housing agency that--
                    ``(A) adequately represent the interests of 
                the residents of the public housing agency; and
                    ``(B) have the ability to perform the 
                functions described in paragraph (2).
            ``(1) In general.--In developing a public housing 
        agency plan under this section, the board of directors 
        or similar governing body of a public housing agency 
        shall conduct a public hearing to discuss the public 
        housing agency plan and to invite public comment 
        regarding that plan. The hearing shall be conducted at 
        a location that is convenient to residents.
            ``(2) Availability of information and notice.--Not 
        later than 45 days before the date of a hearing 
        conducted under paragraph (1), the public housing 
        agency shall--
                    ``(A) make the proposed public housing 
                agency plan and all information relevant to the 
                hearing and proposed plan available for 
                inspection by the public at the principal 
                office of the public housing agency during 
                normal business hours; and
                    ``(B) publish a notice informing the public 
                that--
                            ``(i) that the information is 
                        available as required under 
                        subparagraph (A); and
                            ``(ii) that a public hearing under 
                        paragraph (1) will be conducted.
            ``(3) Adoption of plan.--A public housing agency 
        may adopt a public housing agency plan and submit the 
        plan to the Secretary in accordance with this section 
        only after--
                    ``(A) conducting a public hearing under 
                paragraph (1);
                    ``(B) considering all public comments 
                received; and
                    ``(C) making any appropriate changes in the 
                public housing agency plan, in consultation 
                with the resident advisory board.
            ``(4) Advisory board consultation enforcement.--
        Pursuant to a written request made by the resident 
        advisory board for a public housing agency that 
        documents a failure on the part of the agency to 
        provide adequate notice and opportunity for comment 
        under this subsection and a finding by the Secretary of 
        good cause within the time period provided for in 
        subsection (i)(4), the Secretary may require the public 
        housing agency to adequately remedy such failure before 
        final approval of the public housing agency plan under 
        this section.
    ``(g) Amendments and Modifications to Plans.--
            ``(1) In general.--Except as provided in paragraph 
        (2), nothing in this section shall preclude a public 
        housing agency, after submitting a plan to the 
        Secretary in accordance with this section, from 
        amending or modifying any policy, rule, regulation, or 
        plan of the public housing agency, except that a 
        significant amendment or modification may not--
                    ``(A) be adopted, other than at a duly 
                called meeting of board of directors (or 
                similar governing body) of the public housing 
                agency that is open to the public; and
                    ``(B) be implemented, until notification of 
                the amendment or modification is provided to 
                the Secretary and approved in accordance with 
                subsection (i).
            ``(2) Consistency and notice.--Each significant 
        amendment or modification to a public housing agency 
        plan submitted to the Secretary under this section 
        shall--
                    ``(A) meet the requirements under 
                subsection (c)(2) (relating to consultation 
                with resident advisory board and consistency 
                with comprehensive housing affordability 
                strategies); and
                    ``(B) be subject to the notice and public 
                hearing requirements of subsection (f).
    ``(h) Submission of Plans.--
            ``(1) Initial submission.--Each public housing 
        agency shall submit the initial plan required by this 
        section, and any amendment or modification to the 
        initial plan, to the Secretary at such time and in such 
        form as the Secretary shall require.
            ``(2) Annual submission.--Not later than 75 days 
        before the start of the fiscal year of the public 
        housing agency, after submission of the initial plan 
        required by this section in accordance with 
        subparagraph (A), each public housing agency shall 
        annually submit to the Secretary a plan update, 
        including any amendments or modifications to the public 
        housing agency plan.
    ``(i) Review and Determination of Compliance.--
            ``(1) Review.--Subject to paragraph (2), after 
        submission of the public housing agency plan or any 
        amendment or modification to the plan to the Secretary, 
        to the extent that the Secretary considers such action 
        to be necessary to make determinations under this 
        paragraph, the Secretary shall review the public 
        housing agency plan (including any amendments or 
        modifications thereto) and determine whether the 
        contents of the plan--
                    ``(A) set forth the information required by 
                this section and this Act to be contained in a 
                public housing agency plan;
                    ``(B) are consistent with information and 
                data available to the Secretary, including the 
                approved comprehensive housing affordability 
                strategy under title I of the Cranston-Gonzalez 
                National Affordable Housing Act for the 
                jurisdiction in which the public housing agency 
                is located; and
                    ``(C) are not prohibited by or inconsistent 
                with any provision of this title or other 
                applicable law.
            ``(2) Elements exempted from review.--The Secretary 
        may, by regulation, provide that one or more elements 
        of a public housing agency plan shall be reviewed only 
        if the element is challenged, except that the Secretary 
        shall review the information submitted in each plan 
        pursuant to paragraphs (3)(B), (8), and (15) of 
        subsection (d).
            ``(3) Disapproval.--The Secretary may disapprove a 
        public housing agency plan (or any amendment or 
        modification thereto) only if Secretary determines that 
        the contents of the plan (or amendment or modification) 
        do not comply with the requirements under subparagraph 
        (A) through (C) of paragraph (1).
            ``(4) Determination of compliance.--
                    ``(A) In general.--Except as provided in 
                subsection (j)(2), not later than 75 days after 
                the date on which a public housing agency plan 
                is submitted in accordance with this section, 
                the Secretary shall make the determination 
                under paragraph (1) and provide written notice 
                to the public housing agency if the plan has 
                been disapproved. If the Secretary disapproves 
                the plan, the notice shall state with 
                specificity the reasons for the disapproval.
                    ``(B) Failure to provide notice of 
                disapproval.--In the case of a plan 
                disapproved, if the Secretary does not provide 
                notice of disapproval under subparagraph (A) 
                before the expiration of the period described 
                in subparagraph (A), the Secretary shall be 
                considered, for purposes of this Act, to have 
                made a determination that the plan complies 
                with the requirements under this section and 
                the agency shall be considered to have been 
                notified of compliance upon the expiration of 
                such period. The preceding sentence shall not 
                preclude judicial review regarding such 
                compliance pursuant to chapter 7 of title 5, 
                United States Code, or an action regarding such 
                compliance under section 1979 of the Revised 
                Statutes of the United States (42 U.S.C. 1983).
            ``(5) Public availability.--A public housing agency 
        shall make the approved plan of the agency available to 
        the general public.
    ``(j) Troubled and At-Risk PHAs.--
            ``(1) In general.--The Secretary may require, for 
        each public housing agency that is at risk of being 
        designated as troubled under section 6(j)(2) or is 
        designated as troubled under section 6(j)(2), that the 
        public housing agency plan for such agency include such 
        additional information as the Secretary determines to 
        be appropriate, in accordance with such standards as 
        the Secretary may establish or in accordance with such 
        determinations as the Secretary may make on an agency-
        by-agency basis.
            ``(2) Troubled agencies.--The Secretary shall 
        provide explicit written approval or disapproval, in a 
        timely manner, for a public housing agency plan 
        submitted by any public housing agency designated by 
        the Secretary as a troubled public housing agency under 
        section 6(j)(2).
    ``(k) Streamlined plan.--In carrying out this section, the 
Secretary may establish a streamlined public housing agency 
plan for--
                    ``(A) public housing agencies that are 
                determined by the Secretary to be high 
                performing public housing agencies;
                    ``(B) public housing agencies with less 
                than 250 public housing units that have not 
                been designated as troubled under section 
                6(j)(2); and
                    ``(C) public housing agencies that only 
                administer tenant-based assistance and that do 
                not own or operate public housing.
    ``(l) Compliance With Plan.--
            ``(1) In general.--In providing assistance under 
        this title, a public housing agency shall comply with 
        the rules, standards, and policies established in the 
        public housing agency plan of the public housing agency 
        approved under this section.
            ``(2) Investigation and enforcement.--In carrying 
        out this title, the Secretary shall--
                    ``(A) provide an appropriate response to 
                any complaint concerning noncompliance by a 
                public housing agency with the applicable 
                public housing agency plan; and
                    ``(B) if the Secretary determines, based on 
                a finding of the Secretary or other information 
                available to the Secretary, that a public 
                housing agency is not complying with the 
                applicable public housing agency plan, take 
                such actions as the Secretary determines to be 
                appropriate to ensure such compliance.''.
    (b) Implementation.--
            (1) Interim rule.--Not later than 120 days after 
        the date of the enactment of this Act, the Secretary 
        shall issue an interim rule to require the submission 
        of an interim public housing agency plan by each public 
        housing agency, as required by section 5A of the United 
        States Housing Act of 1937 (as added by subsection (a) 
        of this section). The interim rule shall provide for a 
        public comment period of not less than 60 days.
            (2) Final regulations.--Not later than 1 year after 
        the date of enactment of this Act, the Secretary shall 
        issue final regulations implementing section 5A of the 
        United States Housing Act of 1937 (as added by 
        subsection (a) of this section).
            (3) Factors for consideration.--Before the 
        publication of the final regulations under paragraph 
        (2), in addition to public comments invited in 
        connection with the publication of the interim rule, 
        the Secretary shall--
                    (A) seek recommendations on the 
                implementation of section 5A of the United 
                States Housing Act of 1937 (as added by this 
                subsection (a) of this section) from 
                organizations representing--
                            (i) State or local public housing 
                        agencies;
                            (ii) residents, including resident 
                        management corporations; and
                            (iii) other appropriate parties; 
                        and
                    (B) convene not less than 2 public forums 
                at which the persons or organizations making 
                recommendations under subparagraph (A) may 
                express views concerning the proposed 
                disposition of the recommendations.
        The Secretary shall publish in the final rule a summary 
        of the recommendations made and public comments 
        received and the Department of Housing and Urban 
        Development's response to such recommendations and 
        comments.
    (c) Audit and Review; Report.--
            (1) Audit and review.--Not later than 1 year after 
        the effective date of final regulations issued under 
        subsection (b)(2), in order to determine the degree of 
        compliance, by public housing agencies, with public 
        housing agency plans approved under section 5A of the 
        United States Housing Act of 1937 (as added by 
        subsection (a) of this section), the Comptroller 
        General of the United States shall conduct--
                    (A) a review of a representative sample of 
                the public housing agency plans approved under 
                such section 5A before such date; and
                    (B) an audit and review of the public 
                housing agencies submitting such plans.
            (2) Report.--Not later than 2 years after the date 
        on which public housing agency plans are initially 
        required to be submitted under section 5A of the United 
        States Housing Act of 1937 (as added by subsection (a) 
        of this section) the Comptroller General of the United 
        States shall submit to the Congress a report, which 
        shall include--
                    (A) a description of the results of each 
                audit and review under paragraph (1); and
                    (B) any recommendations for increasing 
                compliance by public housing agencies with 
                their public housing agency plans approved 
                under section 5A of the United States Housing 
                Act of 1937 (as added by subsection (a) of this 
                section).
    (d) Contract Provisions.--Section 6(a) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(a)) is amended--
            (1) in the first sentence, by inserting ``, in a 
        manner consistent with the public housing agency plan'' 
        before the period; and
            (2) by striking the second sentence.
    (e) Applicability.--This section shall take effect, and the 
amendments made by this section are made on, and shall apply 
beginning upon, the date of the enactment of this Act.

SEC. 512. COMMUNITY SERVICE AND FAMILY SELF-SUFFICIENCY REQUIREMENTS.

    (a) In General.--Section 12 of the United States Housing 
Act of 1937 (42 U.S.C. 1437j) is amended--
            (1) in the section heading, by inserting ``and 
        community service requirement'' after ``labor 
        standards''; and
            (2) by adding at the end the following new 
        subsections:
    ``(c) Community Service Requirement.--
            ``(1) In general.--Except as provided in paragraph 
        (2) and notwithstanding any other provision of law, 
        each adult resident of a public housing project shall--
                    ``(A) contribute 8 hours per month of 
                community service (not including political 
                activities) within the community in which that 
                adult resides; or
                    ``(B) participate in an economic self-
                sufficiency program (as that term is defined in 
                subsection (g)) for 8 hours per month.
            ``(2) Exemptions.--The Secretary shall provide an 
        exemption from the applicability of paragraph (1) for 
        any individual who--
                    ``(A) is 62 years of age or older;
                    ``(B) is a blind or disabled individual, as 
                defined under section 216(i)(1) or 1614 of the 
                Social Security Act (42 U.S.C. 416(i)(1); 
                1382c), and who is unable to comply with this 
                section, or is a primary caretaker of such 
                individual;
                    ``(C) is engaged in a work activity (as 
                such term is defined in section 407(d) of the 
                Social Security Act (42 U.S.C. 607(d)), as in 
                effect on and after July 1, 1997));
                    ``(D) meets the requirements for being 
                exempted from having to engage in a work 
                activity under the State program funded under 
                part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.) or under any other 
                welfare program of the State in which the 
                public housing agency is located, including a 
                State-administered welfare-to-work program; or
                    ``(E) is in a family receiving assistance 
                under a State program funded under part A of 
                title IV of the Social Security Act (42 U.S.C. 
                601 et seq.) or under any other welfare program 
                of the State in which the public housing agency 
                is located, including a State-administered 
                welfare-to-work program, and has not been found 
                by the State or other administering entity to 
                be in noncompliance with such program.
            ``(3) Annual determinations.--
                    ``(A) Requirement.--For each public housing 
                resident subject to the requirement under 
                paragraph (1), the public housing agency shall, 
                30 days before the expiration of each lease 
                term of the resident under section 6(l)(1), 
                review and determine the compliance of the 
                resident with the requirement under paragraph 
                (1) of this subsection.
                    ``(B) Due process.--Such determinations 
                shall be made in accordance with the principles 
                of due process and on a nondiscriminatory 
                basis.
                    ``(C) Noncompliance.-- If an agency 
                determines that a resident subject to the 
                requirement under paragraph (1) has not 
                complied with the requirement, the agency--
                            ``(i) shall notify the resident--
                                    ``(I) of such 
                                noncompliance;
                                    ``(II) that the 
                                determination of noncompliance 
                                is subject to the 
                                administrative grievance 
                                procedure under subsection (k); 
                                and
                                    ``(III) that, unless the 
                                resident enters into an 
                                agreement under clause (ii) of 
                                this subparagraph, the 
                                resident's lease will not be 
                                renewed; and
                            ``(ii) may not renew or extend the 
                        resident's lease upon expiration of the 
                        lease term and shall take such action 
                        as is necessary to terminate the 
                        tenancy of the household, unless the 
                        agency enters into an agreement, before 
                        the expiration of the lease term, with 
                        the resident providing for the resident 
                        to cure any noncompliance with the 
                        requirement under paragraph (1), by 
                        participating in an economic self-
                        sufficiency program for or contributing 
                        to community service as many additional 
                        hours as the resident needs to comply 
                        in the aggregate with such requirement 
                        over the 12-month term of the lease.
            ``(4) Ineligibility for occupancy for 
        noncompliance.--A public housing agency may not renew 
        or extend any lease, or provide any new lease, for a 
        dwelling unit in public housing for any household that 
        includes an adult member who was subject to the 
        requirement under paragraph (1) and failed to comply 
        with the requirement.
            ``(5) Inclusion in plan.--Each public housing 
        agency shall include in its public housing agency plan 
        a detailed description of the manner in which the 
        agency intends to implement and administer this 
        subsection.
            ``(6) Geographic location.--The requirement under 
        paragraph (1) may include community service or 
        participation in an economic self-sufficiency program 
        performed at a location not owned by the public housing 
        agency.
            ``(7) Prohibition against replacement of 
        employees.--In carrying out this subsection, a public 
        housing agency may not--
                    ``(A) substitute community service or 
                participation in an economic self-sufficiency 
                program, as described in paragraph (1), for 
                work performed by a public housing employee; or
                    ``(B) supplant a job at any location at 
                which community work requirements are 
                fulfilled.
            ``(8) Third-party coordinating.--A public housing 
        agency may administer the community service requirement 
        under this subsection directly, through a resident 
        organization, or through a contractor having experience 
        in administering volunteer-based community service 
        programs within the service area of the public housing 
        agency. The Secretary may establish qualifications for 
        such organizations and contractors.
    ``(d) Treatment of Income Changes Resulting From Welfare 
Program Requirements.--
            ``(1) Covered family.--For purposes of this 
        subsection, the term `covered family' means a family 
        that (A) receives benefits for welfare or public 
        assistance from a State or other public agency under a 
        program for which the Federal, State, or local law 
        relating to the program requires, as a condition of 
        eligibility for assistance under the program, 
        participation of a member of the family in an economic 
        self-sufficiency program, and (B) resides in a public 
        housing dwelling unit or is provided tenant-based 
        assistance under section 8.
            ``(2) Decreases in income for failure to comply.--
                    ``(A) In general.--Notwithstanding the 
                provisions of section 3(a) (relating to family 
                rental contributions) or paragraph (4) or (5) 
                of section 3(b) (relating to definition of 
                income and adjusted income), if the welfare or 
                public assistance benefits of a covered family 
                are reduced under a Federal, State, or local 
                law regarding such an assistance program 
                because of any failure of any member of the 
                family to comply with the conditions under the 
                assistance program requiring participation in 
                an economic self-sufficiency program or 
                imposing a work activities requirement, the 
                amount required to be paid by the family as a 
                monthly contribution toward rent may not be 
                decreased, during the period of the reduction, 
                as a result of any decrease in the income of 
                the family (to the extent that the decrease in 
                income is a result of the benefits reduction).
                    ``(B) No reduction based on time limit for 
                assistance.--For purposes of this paragraph, a 
                reduction in benefits as a result of the 
                expiration of a lifetime time limit for a 
                family receiving welfare or public assistance 
                benefits shall not be considered to be a 
                failure to comply with the conditions under the 
                assistance program requiring participation in 
                an economic self-sufficiency program or 
                imposing a work activities requirement. This 
                paragraph shall apply beginning upon the date 
                of the enactment of the Quality Housing and 
                Work Responsibility Act of 1998.
            ``(3) Effect of fraud.--Notwithstanding the 
        provisions of section 3(a) (relating to family rental 
        contributions) or paragraph (4) or (5) of section 3(b) 
        (relating to definition of income and adjusted income), 
        if the welfare or public assistance benefits of a 
        covered family are reduced because of an act of fraud 
        by a member of the family under the law or program, the 
        amount required to be paid by the covered family as a 
        monthly contribution toward rent may not be decreased, 
        during the period of the reduction, as a result of any 
        decrease in the income of the family (to the extent 
        that the decrease in income is a result of the benefits 
        reduction). This paragraph shall apply beginning upon 
        the date of the enactment of the Quality Housing and 
        Work Responsibility Act of 1998.
            ``(4) Notice.--Paragraphs (2) and (3) shall not 
        apply to any covered family before the public housing 
        agency providing assistance under this Act on behalf of 
        the family obtains written notification from the 
        relevant welfare or public assistance agency specifying 
        that the family's benefits have been reduced because of 
        noncompliance with economic self-sufficiency program or 
        work activities requirements or fraud, and the level of 
        such reduction.
            ``(5) Occupancy rights.--This subsection may not be 
        construed to authorize any public housing agency to 
        establish any time limit on tenancy in a public housing 
        dwelling unit or on receipt of tenant-based assistance 
        under section 8.
            ``(6) Review.--Any covered family residing in 
        public housing that is affected by the operation of 
        this subsection shall have the right to review the 
        determination under this subsection through the 
        administrative grievance procedure established pursuant 
        to section 6(k) for the public housing agency.
            ``(7) Cooperation agreements for economic self-
        sufficiency activities.--
                    ``(A) Requirement.--A public housing agency 
                providing public housing dwelling units or 
                tenant-based assistance under section 8 for 
                covered families shall make its best efforts to 
                enter into such cooperation agreements, with 
                State, local, and other agencies providing 
                assistance to covered families under welfare or 
                public assistance programs, as may be 
                necessary, to provide for such agencies to 
                transfer information to facilitate 
                administration of subsection(c) and paragraphs 
(2), (3), and (4) of this subsection and other information regarding 
rents, income, and assistance that may assist a public housing agency 
or welfare or public assistance agency in carrying out its functions.
                    ``(B) Contents.--A public housing agency 
                shall seek to include in a cooperation 
                agreement under this paragraph requirements and 
                provisions designed to target assistance under 
                welfare and public assistance programs to 
                families residing in public housing projects 
                and families receiving tenant-based assistance 
                under section 8, which may include providing 
                for economic self-sufficiency services within 
                such housing, providing for services designed 
                to meet the unique employment-related needs of 
                residents of such housing and recipients of 
                such assistance, providing for placement of 
                workfare positions on-site in such housing, and 
                such other elements as may be appropriate.
                    ``(C) Confidentiality.--This paragraph may 
                not be construed to authorize any release of 
                information prohibited by, or in contravention 
                of, any other provision of Federal, State, or 
                local law.
    ``(e) Lease Provisions.--A public housing agency shall 
incorporate into leases under section 6(l) and into agreements 
for the provision of tenant-based assistance under section 8, 
provisions incorporating the conditions under subsection (d).
    ``(f) Treatment of Income.--Notwithstanding any other 
provision of this section, in determining the income of a 
family who resides in public housing or receives tenant-based 
assistance under section 8, a public housing agency shall 
consider any decrease in the income of a family that results 
from the reduction of any welfare or public assistance benefits 
received by the family under any Federal, State, or local law 
regarding a program for such assistance if the family (or a 
member thereof, as applicable) has complied with the conditions 
for receiving such assistance and is unable to obtain 
employment notwithstanding such compliance.
    ``(g) Definition.--For purposes of this section, the term 
`economic self-sufficiency program' means any program designed 
to encourage, assist, train, or facilitate the economic 
independence of participants and their families or to provide 
work for participants, including programs for job training, 
employment counseling, work placement, basic skills training, 
education, workfare, financial or household management, 
apprenticeship, or other activities as the Secretary may 
provide.''.
    (b) 1-Year Leases.--Section 6(l) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(l)) is amended--
            (1) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively;
            (2) by redesignating paragraph (7) as paragraph 
        (9); and
            (3) by inserting before paragraph (2) the following 
        new paragraph:
            ``(1) have a term of 12 months and shall be 
        automatically renewed for all purposes except for 
        noncompliance with the requirements under section 12(c) 
        (relating to community service requirements); except 
        that nothing in this title shall prevent a resident 
        from seeking timely redress in court for failure to 
        renew based on such noncompliance;''.

SEC. 513. INCOME TARGETING.

    (a) In General.--Section 16 of the United States Housing 
Act of 1937 (42 U.S.C. 1437n) is amended by striking the 
section designation and all that follows through the end of 
subsection (d) and inserting the following:
    ``Sec. 16. (a) Income Eligibility for Public Housing.--
            ``(1) Income mix within projects.--A public housing 
        agency may establish and utilize income-mix criteria 
        for the selection of residents for dwelling units in 
        public housing projects, subject to the requirements of 
        this section.
            ``(2) PHA income mix.--
                    ``(A) Targeting.--Except as provided in 
                paragraph (4), of the public housing dwelling 
                units of a public housing agency made available 
                for occupancy in any fiscal year by eligible 
                families, not less than 40 percent shall be 
                occupied by families whose incomes at the time 
                of commencement of occupancy do not exceed 30 
                percent of the area median income, as 
                determined by the Secretary with adjustments 
                for smaller and larger families.
            ``(3) Prohibition of concentration of low-income 
        families.--
                    ``(A) Prohibition.--A public housing agency 
                may not, in complying with the requirements 
                under paragraph (2), concentrate very low-
                income families (or other families with 
                relatively low incomes) in public housing 
                dwelling units in certain public housing 
                projects or certain buildings within projects. 
                The Secretary shall review the income and 
                occupancy characteristics of the public housing 
                projects and the buildings of such projects of 
                such agencies to ensure compliance with the 
                provisions of this paragraph and paragraph (2).
                    ``(B) Deconcentration.--
                            ``(i) In general.--A public housing 
                        agency shall submit with its annual 
                        public housing agency plan under 
                        section 5A an admissions policy 
                        designed to provide for deconcentration 
                        of poverty and income-mixing by 
                        bringing higher income tenants into 
                        lower income projects and lower income 
                        tenants into higher income projects. 
                        This clause may not be construed to 
                        impose or require any specific income 
                        or racial quotas for any project or 
                        projects.
                            ``(ii) Incentives.--In implementing 
                        the policy under clause (i), a public 
                        housing agency may offer incentives for 
                        eligible families having higher incomes 
                        to occupy dwelling unit in projects 
                        predominantly occupied by eligible 
                        families having lower incomes, and 
                        provide for occupancy of eligible 
                        families having lower incomes in 
                        projects predominantly occupied by 
                        eligible families having higher 
                        incomes.
                            ``(iii) Family choice.--Incentives 
                        referred to in clause (ii) may be made 
                        available by a public housing agency 
                        only in a manner that allows for the 
                        eligible family to have the sole 
                        discretion in determining whether to 
                        accept the incentive and an agency may 
                        not take any adverse action toward any 
                        eligible family for choosing not to 
                        accept an incentive and occupancy of a 
                        project described in clause (i)(II), 
                        Provided, That the skipping of a family 
                        on a waiting list to reach another 
                        family to implement the policy under 
                        clause (i) shall not be considered an 
                        adverse action. An agency implementing 
                        an admissions policy under this 
                        subparagraph shall implement the policy 
                        in a manner that does not prevent or 
                        interfere with the use of site-based 
                        waiting lists authorized under section 
                        6(s).
            ``(4) Fungibility with tenant-based assistance.--
                    ``(A) Authority.--Except as provided under 
                subparagraph (D), the number of public housing 
                dwelling units that a public housing agency 
                shall otherwise make available in accordance 
                with paragraph (2)(A) to comply with the 
                percentage requirement under such paragraph for 
                a fiscal year shall be reduced by the credit 
                number for the agency under subparagraph (B).
                    ``(B) Credit for exceeding tenant-based 
                assistance targeting requirement.--Subject to 
                subparagraph (C), the credit number under this 
                subparagraph for a public housing agency for a 
                fiscal year shall be the number by which--
                            ``(i) the aggregate number of 
                        qualified families who, in such fiscal 
                        year, are initially provided tenant-
                        based assistance under section 8 by the 
                        agency; exceeds
                            ``(ii) the number of qualified 
                        families that is required for the 
                        agency to comply with the percentage 
                        requirement under subsection (b)(1) for 
                        such fiscal year.
                    ``(C) Limitations on credit number.--The 
                credit number under subparagraph (B) for a 
                public housing agency for a fiscal year may not 
                in any case exceed the lesser of--
                            ``(i) the number of dwelling units 
                        that is equivalent to 10 percent of the 
                        aggregate number of families initially 
                        provided tenant-based assistance under 
                        section 8 by the agency in such fiscal 
                        year; or
                            ``(ii) the number of public housing 
                        dwelling units of the agency that--
                                    ``(I) are in projects that 
                                are located in census tracts 
                                having a poverty rate of 30 
                                percent or more; and
                                    ``(II) are made available 
                                for occupancy during such 
                                fiscal year and are actually 
                                filled only by families whose 
                                incomes at the time of 
                                commencement of such occupancy 
                                exceed 30 percent of the area 
                                median income, as determined by 
                                the Secretary with adjustments 
                                for smaller and larger 
                                families.
                    ``(D) Fungibility floor.--Notwithstanding 
                any authority under subparagraph (A), of the 
                public housing dwelling units of a public 
                housing agency made available for occupancy in 
                any fiscal year by eligible families, not less 
                than 30 percent shall be occupied by families 
                whose incomes at the time of commencement of 
                occupancy do not exceed 30 percent of the area 
                median income, as determined by the Secretary 
                with adjustments for smaller and larger 
                families.
                    ``(E) Qualified family.--For purposes of 
                this paragraph, the term `qualified family' 
                means a family having an income described in 
                subsection (b)(1).
    ``(b) Income Eligibility for Tenant-Based Section 8 
Assistance.--
            ``(1) In general.--Of the families initially 
        provided tenant-based assistance under section 8 by a 
        public housing agency in any fiscal year, not less than 
        75 percent shall be families whose incomes do not 
        exceed 30 percent of the area median income, as 
        determined by the Secretary with adjustments for 
        smaller and larger families; except that the Secretary 
        may establish income ceilings higher or lower than 30 
        percent of the area median income on the basis of the 
        Secretary's findings that such variations are necessary 
        because of unusually high or low family incomes.
            ``(2) Jurisdictions served by multiple pha's.--In 
        the case of any 2 or more public housing agencies that 
        administer tenant-based assistance under section 8 with 
        respect solely to identical geographical areas, such 
        agencies shall be treated as a single public housing 
        agency for purposes of paragraph (1).
    ``(c) Income Eligibility for Project-Based Section 8 
Assistance.--
            ``(1) Pre-1981 act projects.--Not more than 25 
        percent of the dwelling units that were available for 
        occupancy under 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.
            ``(2) Post-1981 act projects.--Not more than 15 
        percent of the dwelling units which become available 
        for occupancy under section 8 housing assistance 
        payments contracts under this Act on or after the 
        effective date of the Housing and Community Development 
        Amendments of 1981 shall be available for leasing by 
        low-income families other than very low-income 
        families.
            ``(3) Targeting.--For each project assisted under a 
        contract for project-based assistance, of the dwelling 
        units that become available for occupancy in any fiscal 
        year that are assisted under the contract, not less 
        than 40 percent
            ``(4) Prohibition of skipping.--In developing 
        admission procedures implementing paragraphs (1), (2), 
        and (3), the Secretary shall prohibit project owners 
        from selecting families for residence in an order 
        different from the order on the waiting list for the 
        purpose of selecting relatively higher income families 
        for residence. Nothing in this paragraph or this 
        subsection may be construed to prevent an owner of 
        housing assisted under a contract for project-based 
        assistance from establishing a preference for occupancy 
        in such housing for families containing a member who is 
        employed.
            ``(5) Exception.--The limitations established in 
        paragraphs (1), (2), and (3) shall not apply to 
        dwelling units made available under project-based 
        contracts under section 8 for the purpose of preventing 
        displacement, or ameliorating the effects of 
        displacement.
            ``(6) Definition.--For purposes of this subsection, 
        the term `project-based assistance' means assistance 
        under any of the following programs:
                    ``(A) The new construction or substantial 
                rehabilitation program under section 8(b)(2) 
                (as in effect before October 1, 1983).
                    ``(B) The property disposition program 
                under section 8(b) (as in effect before the 
                effective date under section 503(a) of the 
                Quality Housing and Work Responsibility Act of 
                1998).
                    ``(C) The loan management set-aside program 
                under subsections (b) and (v) of section 8.
                    ``(D) The project-based certificate program 
                under section 8(d)(2).
                    ``(E) The moderate rehabilitation program 
                under section 8(e)(2) (as in effect before 
                October 1, 1991).
                    ``(F) The low-income housing preservation 
                program under Low-Income Housing Preservation 
                and Resident Homeownership Act of 1990 or the 
                provisions of the Emergency Low Income Housing 
                Preservation Act of 1987 (as in effect before 
                November 28, 1990).
                    ``(G) Section 8 (as in effect before the 
                effective date under section 503(a) of the 
                Quality Housing and Work Responsibility Act of 
                1998), following conversion from assistance 
                under section 101 of the Housing and Urban 
                Development Act of 1965 or section 236(f)(2) of 
                the National Housing Act.
    ``(d) Establishment of Different Standards.--
Notwithstanding subsection (a)(2) or (b)(1), if approved by the 
Secretary, a public housing agency may for good cause establish 
and implement, in accordance with the public housing agency 
plan, an admission standard other than the standard under such 
subsection.''.
    (b) Effective Date.--This section shall take effect on, and 
the amendments under this section are made on, and shall apply 
beginning upon, the date of the enactment of this Act.

SEC. 514. REPEAL OF FEDERAL PREFERENCES.

    (a) Public Housing.--
            (1) In general.--Subparagraph (A) of section 
        6(c)(4) of the United States Housing Act of 1937 (42 
        U.S.C. 1437d)(c)(4)) is amended to read as follows:
                    ``(A) making dwelling units in public 
                housing available for occupancy, which shall 
                provide that the public housing agency may 
                establish a system for making dwelling units 
                available that provides preference for such 
                occupancy to families having certain 
                characteristics; each system of preferences 
                established pursuant to this subparagraph shall 
                be based upon local housing needs and 
                priorities, as determined by the public housing 
                agency using generally accepted data sources, 
                including any information obtained pursuant to 
                an opportunity for public comment as provided 
                under section 5A(f) and under the requirements 
                applicable to the comprehensive housing 
                affordability strategy for the relevant 
                jurisdiction;''.
            (2) Conforming amendments.--
                    (A) Public housing assistance for foster 
                care children.--Section 6(o) of the United 
                States Housing Act of 1937 (42 U.S.C. 1437d(o)) 
                is amended by striking ``Subject'' and all that 
                follows through ``, in'' and inserting ``In''.
                    (B) Youthbuild program.--Section 
                455(a)(2)(D)(iii) of the Cranston-Gonzalez 
                National Affordable Housing Act (42 U.S.C. 
                12899d(a)(2)(D)(iii) is amended striking 
                ``section 6(c)(4)(A)'' and inserting ``any 
                system of preferences established under section 
                6(c)(1)''.
    (b) Section 8 Existing and Moderate Rehabilitation.--
            (1) In general.--Subparagraph (A) of section 
        8(d)(1) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(d)(1)(A)) is amended to read as follows:
            ``(A) the selection of tenants shall be the 
        function of the owner, subject to the annual 
        contributions contract between the Secretary and the 
        agency, except that with respect to the certificate and 
        moderate rehabilitation programs only, for the purpose 
        of selecting families to be assisted, the public 
        housing agency may establish local preferences, 
        consistent with the public housing agency plan 
        submitted under section 5A by the public housing 
        agency;''.
            (2) Conforming amendments.--
                    (A) Low-income housing preservation and 
                resident homeownership act of 1990.--The second 
                sentence of section 226(b)(6)(B) of the Low-
                Income Housing Preservation and Resident 
                Homeownership Act of 1990 (12 U.S.C. 
                4116(b)(6)(B)) is amended by striking ``The 
                requirement for giving preferences to certain 
                categories of eligible families under sections 
                8(d)(1)(A) and 8(o)(3)'' and inserting ``Any 
                system for preferences established under 
                section 8(d)(1)(A) or 8(o)(6)(A)''.
                    (B) Housing and community development act 
                of 1992.--Section 655 of the Housing and 
                Community Development Act of 1992 (42 U.S.C. 
                13615) is amended by striking ``shall be 
                given'' and all that follows through the period 
                at the end and inserting the following: ``shall 
                be given to disabled families according to any 
                preferences established under any system 
                established under section 8(d)(1)(A) by the 
                public housing agency.''.
                    (C) Management and disposition of 
                multifamily housing projects.--Section 
                203(g)(2) of the Housing and Community 
                Development Amendments of 1978 (12 U.S.C. 
                1701z-11(g)(2)) is amended by striking ``the 
                preferences for assistance under sections 
                6(c)(4)(A)(i), 8(d)(1)(A)(i), and 8(o)(3)(B)'' 
                and inserting ``any system of preferences 
                established pursuant to section 6(c)(4)(A), 
                8(d)(1)(A), or 8(o)(6)(A)''.
                    (D) Other references.--Subparagraph (D) of 
                section 402(d)(6) of The Balanced Budget 
                Downpayment Act, I (42 U.S.C. 1437d note) is 
                hereby repealed.
    (c) Section 8 New Construction and Substantial 
Rehabilitation.--
            (1) Permanent repeal.--Subsection (c) of section 
        545 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 1437f note) is hereby repealed.
            (2) Prohibition.--Notwithstanding any other 
        provision of law (including subsection (f) of this 
        section), section 402(d)(4)(B) of The Balanced Budget 
        Downpayment Act, I (42 U.S.C. 1437a note) shall apply 
        to fiscal year 1999 and thereafter.
    (d) Rent Supplements.--Subsection (k) of section 1010 of 
the Housing and Urban Development Act of 1965 (12 U.S.C. 
1701s(k)) is hereby repealed.
    (e) Sense of Congress Regarding Preference for Assistance 
for Victims of Domestic Violence.--It is the sense of Congress 
that, each public housing agency involved in the selection of 
eligible families for assistance under the United States 
Housing Act of 1937 (including residency in public housing and 
tenant-based assistance under section 8 of such Act) should, 
consistent with the public housing agency plan of the agency, 
consider preferences for individuals who are victims of 
domestic violence.
    (f) Termination of Temporary Provisions.--Section 402 of 
The Balanced Budget Downpayment Act, I, and the amendments made 
by such section shall cease to be effective on the date of the 
enactment of this Act. Notwithstanding the inclusion in this 
Act of any provision extending the effectiveness of such 
section or such amendments, such provision included in this Act 
shall not take effect.
    (g) Applicability.--This section shall take effect on, and 
the amendments made by this section are made on, and shall 
apply beginning upon, the date of the enactment of this Act.

SEC. 515. JOINT VENTURES AND CONSORTIA OF PUBLIC HOUSING AGENCIES; 
                    REPEAL OF ENERGY CONSERVATION PROVISIONS.

    Section 13 of the United States Housing Act of 1937 (42 
U.S.C. 1437k) is amended to read as follows:

``SEC. 13. CONSORTIA, JOINT VENTURES, AFFILIATES, AND SUBSIDIARIES OF 
                    PUBLIC HOUSING AGENCIES.

    ``(a) Consortia.--
            ``(1) In general.--Any 2 or more public housing 
        agencies may participate in a consortium for the 
        purpose of administering any or all of the housing 
        programs of those public housing agencies in accordance 
        with this section.
            ``(2) Effect.--With respect to any consortium 
        described in paragraph (1)--
                    ``(A) any assistance made available under 
                this title to each of the public housing 
                agencies participating in the consortium shall 
                be paid to the consortium; and
                    ``(B) all planning and reporting 
                requirements imposed upon each public housing 
                agency participating in the consortium with 
                respect to the programs operated by the 
                consortium shall be consolidated.
            ``(3) Restrictions.--
                    ``(A) Agreement.--Each consortium described 
                in paragraph (1) shall be formed and operated 
                in accordance with a consortium agreement, and 
                shall be subject to the requirements of a joint 
                public housing agency plan, which shall be 
                submitted by the consortium in accordance with 
                section 5A.
                    ``(B) Minimum requirements.--The Secretary 
                shall specify minimum requirements relating to 
                the formation and operation of consortia and 
                the minimum contents of consortium agreements 
                under this paragraph.
    ``(b) Joint Ventures.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, a public housing agency, in 
        accordance with the public housing agency plan, may--
                    ``(A) form and operate wholly owned or 
                controlled subsidiaries (which may be nonprofit 
                corporations) and other affiliates, any of 
                which may be directed, managed, or controlled 
                by the same persons who constitute the board of 
                directors or similar governing body of the 
                public housing agency, or who serve as 
                employees or staff of the public housing 
                agency; or
                    ``(B) enter into joint ventures, 
                partnerships, or other business arrangements 
                with, or contract with, any person, 
                organization, entity, or governmental unit--
                            ``(i) with respect to the 
                        administration of the programs of the 
                        public housing agency, including any 
                        program that is subject to this title; 
                        or
                            ``(ii) for the purpose of providing 
                        or arranging for the provision of 
                        supportive or social services.
            ``(2) Use of and treatment income.--Any income 
        generated under paragraph (1)--
                    ``(A) shall be used for low-income housing 
                or to benefit the residents assisted by the 
                public housing agency; and
                    ``(B) shall not result in any decrease in 
                any amount provided to the public housing 
                agency under this title, except as otherwise 
                provided under the formulas established under 
                section 9(d)(2) and 9(e)(2).
            ``(3) Audits.--The Comptroller General of the 
        United States, the Secretary, or the Inspector General 
        of the Department of Housing and Urban Development may 
        conduct an audit of any activity undertaken under 
        paragraph (1) at any time.''.

SEC. 516. PUBLIC HOUSING AGENCY MORTGAGES AND SECURITY INTERESTS.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.) is amended by adding at the end the following:

``SEC. 30. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.

    ``(a) General Authorization.--The Secretary may, upon such 
terms and conditions as the Secretary may prescribe, authorize 
a public housing agency to mortgage or otherwise grant a 
security interest in any public housing project or other 
property of the public housing agency.
    ``(b) Terms and Conditions.--In making any authorization 
under subsection (a), the Secretary may consider--
            ``(1) the ability of the public housing agency to 
        use the proceeds of the mortgage or security interest 
        for low-income housing uses;
            ``(2) the ability of the public housing agency to 
        make payments on the mortgage or security interest; and
            ``(3) such other criteria as the Secretary may 
        specify.
    ``(c) No Federal Liability.--No action taken under this 
section shall result in any liability to the Federal 
Government.''.

SEC. 517. MENTAL HEALTH ACTION PLAN.

    The Secretary of Housing and Urban Development, in 
consultation with the Secretary of Health and Human Services, 
the Secretary of Labor, and appropriate State and local 
officials and representatives, shall--
            (1) develop an action plan and list of 
        recommendations for the improvement of means of 
        providing severe mental illness treatment to families 
        and individuals receiving housing assistance under the 
        United States Housing Act of 1937, including public 
        housing residents, residents of multifamily housing 
        assisted with project-based assistance under section 8 
        of such Act, and recipients of tenant-based assistance 
        under such section; and
            (2) develop and disseminate a list of current 
        practices among public housing agencies and owners of 
        assisted housing that serve to benefit persons in need 
        of mental health care.''.

                       Subtitle B--Public Housing

                PART 1--CAPITAL AND OPERATING ASSISTANCE

SEC. 518. CONTRIBUTIONS FOR LOWER INCOME HOUSING PROJECTS.

    (a) Repeals.--
            (1) In general.--Section 5 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437c) is amended--
                    (A) by striking subsections (h) through 
                (k); and
                    (B) by redesignating subsection (l), as 
                added by the preceding provisions of this Act, 
                as subsection (i).
            (2) Conforming amendments.--The United States 
        Housing Act of 1937 is amended--
                    (A) in section 21(d) (42 U.S.C. 1437s(d)), 
                by striking ``section 5(h) or''; and
                    (C) in section 307 (42 U.S.C. 1437aaa-6), 
                by striking ``section 5(h) and''.
    (b) Local Notification.--Section 5(e)(2) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(e)(2)) is amended 
by inserting before the period at the end the following: ``; 
the Secretary shall require that each such agreement shall 
provide that, notwithstanding any order, judgment, or decree of 
any court (including any settlement order), before making any 
amounts that are provided pursuant to any contract for 
contributions under this title available for use for the 
development of any housing or other property not previously 
used as public housing, the public housing agency shall (A) 
notify the chief executive officer (or other appropriate 
official) of the unit of general local government in which the 
public housing for which such amounts are to be so used is 
located (or to be located) of such use, and (B) pursuant to the 
request of such unit of general local government, provide such 
information as may reasonably be requested by such unit of 
general local government regarding the public housing to be so 
assisted (except to the extent otherwise prohibited by law)''.

SEC. 519. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

    (a) In General.--Section 9 of the United States Housing Act 
of 1937 (42 U.S.C. 1437g) is amended to read as follows:

``SEC. 9. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

    ``(a) Merger Into Capital Fund.--Except as otherwise 
provided in the Quality Housing and Work Responsibility Act of 
1998, any assistance made available for public housing under 
section 14 of this Act before October 1, 1999, shall be merged 
into the Capital Fund established under subsection (d).
    ``(b) Merger Into Operating Fund.--Except as otherwise 
provided in the Quality Housing and Work Responsibility Act of 
1998, any assistance made available for public housing under 
section 9 of this Act before October 1, 1999, shall be merged 
into the Operating Fund established under subsection (e).
    ``(c) Allocation Amount.--
            ``(1) In general.--For fiscal year 2000 and each 
        fiscal year thereafter, the Secretary shall allocate 
        amounts in the Capital Fund and Operating Funds for 
        assistance for public housing agencies eligible for 
        such assistance. The Secretary shall determine the 
        amount of the allocation for each eligible agency, 
        which shall be, for any fiscal year beginning after the 
        effective date of the formulas described in subsections 
        (d)(2) and (e)(2)--
                    ``(A) for assistance from the Capital Fund, 
                the amount determined for the agency under the 
                formula under subsection (d)(2); and
                    ``(B) for assistance from the Operating 
                Fund, the amount determined for the agency 
                under the formula under subsection (e)(2).
            ``(2) Funding.--There are authorized to be 
        appropriated for assistance for public housing agencies 
        under this section the following amounts:
                    ``(A) Capital fund.--For allocations of 
                assistance from the Capital Fund, 
                $3,000,000,000 for fiscal year 1999, and such 
                sums as may be necessary for fiscal years 2000, 
                2001, 2002, and 2003.
                    ``(B) Operating fund.--For allocations of 
                assistance from the Operating Fund, 
                $2,900,000,000 for fiscal year 1999, and such 
                sums as may be necessary for each of fiscal 
                years 2000, 2001, 2002, and 2003.
    ``(d) Capital Fund.--
            ``(1) In general.--The Secretary shall establish a 
        Capital Fund for the purpose of making assistance 
        available to public housing agencies to carry out 
        capital and management activities, including--
                    ``(A) the development, financing, and 
                modernization of public housing projects, 
                including the redesign, reconstruction, and 
                reconfiguration of public housing sites and 
                buildings (including accessibility 
                improvements) and the development of mixed-
                finance projects;
                    ``(B) vacancy reduction;
                    ``(C) addressing deferred maintenance needs 
                and the replacement of obsolete utility systems 
                and dwelling equipment;
                    ``(D) planned code compliance;
                    ``(E) management improvements;
                    ``(F) demolition and replacement;
                    ``(G) resident relocation;
                    ``(H) capital expenditures to facilitate 
                programs to improve the empowerment and 
                economic self-sufficiency of public housing 
                residents and to improve resident 
                participation;
                    ``(I) capital expenditures to improve the 
                security and safety of residents; and
                    ``(J) homeownership activities, including 
                programs under section 32.
            ``(2) Formula.--The Secretary shall develop a 
        formula for determining the amount of assistance 
        provided to public housing agencies from the Capital 
        Fund for a fiscal year, which shall include a mechanism 
        to reward performance. The formula may take into 
        account such factors as--
                    ``(A) the number of public housing dwelling 
                units owned, assisted, or operated by the 
                public housing agency, the characteristics and 
                locations of the projects, and the 
                characteristics of the families served and to 
                be served (including the incomes of the 
                families);
                    ``(B) the need of the public housing agency 
                to carry out rehabilitation and modernization 
                activities, replacement housing, and 
                reconstruction, construction, and demolition 
                activities related to public housing dwelling 
                units owned, assisted, or operated by the 
                public housing agency, including backlog and 
                projected future needs of the agency;
                    ``(C) the cost of constructing and 
                rehabilitating property in the area;
                    ``(D) the need of the public housing agency 
                to carry out activities that provide a safe and 
                secure environment in public housing units 
                owned, assisted, or operated by the public 
                housing agency;
                    ``(E) any record by the public housing 
                agency of exemplary performance in the 
                operation of public housing, as indicated by 
                the system of performance indicators 
                established pursuant to section 6(j); and
                    ``(F) any other factors that the Secretary 
                determines to be appropriate.
            ``(3) Conditions on use for development and 
        modernization.--
                    ``(A) Development.--Except as otherwise 
                provided in this Act, any public housing 
                developed using amounts provided under this 
                subsection, or under section 14 as in effect 
                before the effective date under section 503(a) 
                of the Quality Housing and Work Responsibility 
                Act of 1998, shall be operated under the terms 
                and conditions applicable to public housing 
                during the 40-year period that begins on the 
                date on which the project (or stage of the 
                project) becomes available for occupancy.
                    ``(B) Modernization.--Except as otherwise 
                provided in this Act, any public housing or 
                portion thereof that is modernized using 
                amounts provided under this subsection or under 
                section 14 (as in effect before the effective 
                date under section 503(a) of the Quality 
                Housing and Work Responsibility Act of 1998) 
                shall be maintained and operated under the 
                terms and conditions applicable to public 
                housing during the 20-year period that begins 
                on the latest date on which modernization is 
                completed.
                    ``(C) Applicability of latest expiration 
                date.--Public housing subject to this paragraph 
                or to any other provision of law mandating the 
                operation of the housing as public housing or 
                under the terms and conditions applicable to 
                public housing for a specified length of time, 
                shall be maintained and operated as required 
                until the latest such expiration date.
    ``(e) Operating Fund.--
            ``(1) In general.--The Secretary shall establish an 
        Operating Fund for the purpose of making assistance 
        available to public housing agencies for the operation 
        and management of public housing, including--
                    ``(A) procedures and systems to maintain 
                and ensure the efficient management and 
                operation of public housing units (including 
                amounts sufficient to pay for the reasonable 
                costs of review by an independent auditor of 
                the documentation or other information 
                maintained pursuant to section 6(j)(6) by a 
                public housing agency or resident management 
                corporation to substantiate the performance of 
                that agency or corporation);
                    ``(B) activities to ensure a program of 
                routine preventative maintenance;
                    ``(C) anticrime and antidrug activities, 
                including the costs of providing adequate 
                security for public housing residents, 
                including above-baseline police service 
                agreements;
                    ``(D) activities related to the provision 
                of services, including service coordinators for 
                elderly persons or persons with disabilities;
                    ``(E) activities to provide for management 
                and participation in the management and policy 
                making of public housing by public housing 
                residents;
                    ``(F) the costs of insurance;
                    ``(G) the energy costs associated with 
                public housing units, with an emphasis on 
                energy conservation;
                    ``(H) the costs of administering a public 
                housing work program under section 12, 
                including the costs of any related insurance 
                needs;
                    ``(I) the costs of repaying, together with 
                rent contributions, debt incurred to finance 
                the rehabilitation and development of public 
                housing units, which shall be subject to such 
                reasonable requirements as the Secretary may 
                establish; and
                    ``(J) the costs associated with the 
                operation and management of mixed finance 
                projects, to the extent appropriate.
            ``(2) Formula.--
                    ``(A) In general.--The Secretary shall 
                establish a formula for determining the amount 
                of assistance provided to public housing 
                agencies from the Operating Fund for a fiscal 
                year. The formula may take into account--
                            ``(i) standards for the costs of 
                        operating and reasonable projections of 
                        income, taking into account the 
                        characteristics and locations of the 
                        public housing projects and 
                        characteristics of the families served 
                        and to be served (including the incomes 
                        of the families), or the costs of 
                        providing comparable services as 
                        determined in accordance with criteria 
                        or a formula representing the 
                        operations of a prototype well-managed 
                        public housing project;
                            ``(ii) the number of public housing 
                        dwelling units owned, assisted, or 
                        operated by the public housing agency;
                            ``(iii) the number of public 
                        housing dwelling units owned, assisted, 
                        or operated by the public housing 
                        agency that are chronically vacant and 
                        the amount of assistance appropriate 
                        for those units;
                            ``(iv) to the extent quantifiable, 
                        the extent to which the public housing 
                        agency provides programs and activities 
                        designed to promote the economic self-
                        sufficiency and management skills of 
                        public housing residents;
                            ``(v) the need of the public 
                        housing agency to carry out anti-crime 
                        and anti-drug activities, including 
                        providing adequate security for public 
                        housing residents;
                            ``(vi) the amount of public housing 
                        rental income foregone by the public 
                        housing agency as a result of escrow 
                        savings accounts under section 23(d)(2) 
                        for families participating in a family 
                        self-sufficiency program of the agency 
                        under such section 23; and
                    ``(vii) any other factors that the 
                Secretary determines to be appropriate.
                    ``(B) Incentive to increase certain rental 
                income.--The formula shall provide an incentive 
                to encourage public housing agencies to 
                facilitate increases in earned income by 
                families in occupancy. Any such incentive shall 
                provide that the agency shall benefit from 
                increases in such rental income and that such 
                amounts accruing to the agency pursuant to such 
                benefit may be used only for low-income housing 
                or to benefit the residents of the public 
                housing agency.
                    ``(C) Treatment of savings.--The treatment 
                of utility and waste management costs under the 
                formula shall provide that a public housing 
                agency shall receive the full financial benefit 
                from any reduction in the cost of utilities or 
                waste management resulting from any contract 
                with a third party to undertake energy 
                conservation improvements in one or more of its 
                public housing projects.
            ``(3) Condition on use.--No portion of any public 
        housing project operated using amounts provided under 
        this subsection, or under this section as in effect 
        before the effective date under section 503(a) of the 
        Quality Housing and Work Responsibility Act of 1998, 
        may be disposed of before the expiration of the 10-year 
        period beginning upon the conclusion of the fiscal year 
        for which such amounts were provided, except as 
        otherwise provided in this Act.
    ``(f) Negotiated Rulemaking Procedure.--The formulas under 
subsections (d)(2) and (e)(2) shall be developed according to 
procedures for issuance of regulationsunder the negotiated 
rulemaking procedure under subchapter III of chapter 5 of title 5, 
United States Code.
    ``(g) Limitations on Use of Funds.--
            ``(1) Flexibility for capital fund amounts.--Of any 
        amounts appropriated for fiscal year 2000 or any fiscal 
        year thereafter that are allocated for fiscal year 2000 
        or any fiscal year thereafter from the Capital Fund for 
        any public housing agency, the agency may use not more 
        than 20 percent for activities that are eligible under 
        subsection (e) for assistance with amounts from the 
        Operating Fund, but only if the public housing agency 
        plan for the agency provides for such use.
            ``(2) Full flexibility for small pha's.--Of any 
        amounts allocated for any fiscal year for any public 
        housing agency that owns or operates less than 250 
        public housing dwelling units, is not designated 
        pursuant to section 6(j)(2) as a troubled public 
        housing agency, and (in the determination of the 
        Secretary) is operating and maintaining its public 
        housing in a safe, clean, and healthy condition, the 
        agency may use any such amounts for any eligible 
        activities under subsections (d)(1) and (e)(1), 
        regardless of the fund from which the amounts were 
        allocated and provided. This subsection shall take 
        effect on the date of the enactment of the Quality 
        Housing and Work Responsibility Act of 1998.
            ``(3) Limitation on new construction.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), a public housing 
                agency may not use any of the amounts allocated 
                for the agency from the Capital Fund or 
                Operating Fund for the purpose of constructing 
                any public housing unit, if such construction 
                would result in a net increase from the number 
                of public housing units owned, assisted, or 
                operated by the public housing agency on 
                October 1, 1999, including any public housing 
                units demolished as part of any revitalization 
                effort.
                    ``(B) Exception regarding use of 
                assistance.--A public housing agency may use 
                amounts allocated for the agency from the 
                Capital Fund or Operating Fund for the 
                construction and operation of housing units 
                that are available and affordable to low-income 
                families in excess of the limitations on new 
                construction set forth in subparagraph (A), but 
                the formulas established under subsections 
                (d)(2) and (e)(2) shall not provide additional 
                funding for the specific purpose of allowing 
                construction and operation of housing in excess 
                of those limitations (except to the extent 
                provided in subparagraph (C)).
                    ``(C) Exception regarding formulas.--
                Subject to reasonable limitations set by the 
                Secretary, the formulas established under 
                subsections (d)(2) and (e)(2) may provide 
                additional funding for the operation and 
                modernization costs (but not the initial 
                development costs) of housing in excess of 
                amounts otherwise permitted under this 
                paragraph, and such amounts may be so used, 
                if--
                            ``(i) such units are part of a 
                        mixed-finance project or otherwise 
                        leverage significant additional private 
                        or public investment; and
                            ``(ii) the estimated cost of the 
                        useful life of the project is less than 
                        the estimated cost of providing tenant-
                        based assistance under section 8(o) for 
                        the same period of time.
    ``(h) Technical Assistance.--To the extent amounts are 
provided in advance in appropriations Acts, the Secretary may 
make grants or enter into contracts or cooperative agreements 
in accordance with this subsection for purposes of providing, 
either directly or indirectly--
            ``(1) technical assistance to public housing 
        agencies, resident councils, resident organizations, 
        and resident management corporations, including 
        assistance relating to monitoring and inspections;
            ``(2) training for public housing agency employees 
        and residents;
            ``(3) data collection and analysis;
            ``(4) training, technical assistance, and education 
        to public housing agencies that are--
                    ``(A) at risk of being designated as 
                troubled under section 6(j), to assist such 
                agencies from being so designated; and
                    ``(B) designated as troubled under section 
                6(j), to assist such agencies in achieving the 
                removal of that designation;
            ``(5) contract expertise;
            ``(6) training and technical assistance to assist 
        in the oversight and management of public housing or 
        tenant-based assistance; and
            ``(7) clearinghouse services in furtherance of the 
        goals and activities of this subsection.
As used in this subsection, the terms `training' and `technical 
assistance' shall include training or technical assistance and 
the cost of necessary travel for participants in such training 
or technical assistance, by or to officials and employees of 
the Department and of public housing agencies, and to residents 
and to other eligible grantees.
    ``(i) Eligibility of Units Acquired From Proceeds of Sales 
Under Demolition or Disposition Plan.--If a public housing 
agency uses proceeds from the sale of units under a 
homeownership program in accordance with section 32 to acquire 
additional units to be sold to low-income families, the 
additional units shall be counted as public housing for 
purposes of determining the amount of the allocation to the 
agency under this section until sale by the agency, but in no 
case longer than 5 years.
    ``(j) Penalty for Slow Expenditure of Capital Funds.--
            ``(1) Obligation of amounts.--Except as provided in 
        paragraph (4) and subject to paragraph (2), a public 
        housing agency shall obligate any assistance received 
        under this section not later than 24 months after, as 
        applicable--
                    ``(A) the date on which the funds become 
                available to the agency for obligation in the 
                case of modernization; or
                    ``(B) the date on which the agency 
                accumulates adequate funds to undertake 
                modernization, substantial rehabilitation, or 
                new construction of units.
            ``(2) Extension of time period for obligation.--The 
        Secretary--
                    ``(A) may, extend the time period under 
                paragraph (1) for a public housing agency, for 
                such period as the Secretary determines to be 
                necessary, if the Secretary determines that the 
                failure of the agency to obligate assistance in 
                a timely manner is attributable to--
                            ``(i) litigation;
                            ``(ii) obtaining approvals of the 
                        Federal Government or a State or local 
                        government;
                            ``(iii) complying with 
                        environmental assessment and abatement 
                        requirements;
                            ``(iv) relocating residents;
                            ``(v) an event beyond the control 
                        of the public housing agency; or
                            ``(vi) any other reason established 
                        by the Secretary by notice published in 
                        the Federal Register;
                    ``(B) shall disregard the requirements of 
                paragraph (1) with respect to any unobligated 
                amounts made available to a public housing 
                agency, to the extent that the total of such 
                amounts does not exceed 10 percent of the 
                original amount made available to the public 
                housing agency; and
                    ``(C) may, with the prior approval of the 
                Secretary, extend the time period under 
                paragraph (1), for an additional period not to 
                exceed 12 months, based on--
                            ``(i) the size of the public 
                        housing agency;
                            ``(ii) the complexity of capital 
                        program of the public housing agency;
                            ``(iii) any limitation on the 
                        ability of the public housing agency to 
                        obligate the amounts allocated for the 
                        agency from the Capital Fund in a 
                        timely manner as a result of State or 
                        local law; or
                            ``(iv) such other factors as the 
                        Secretary determines to be relevant.
            ``(3) Effect of failure to comply.--
                    ``(A) Prohibition of new assistance.--A 
                public housing agency shall not be awarded 
                assistance under this section for any month 
                during any fiscal year in which the public 
                housing agency has funds unobligated in 
                violation of paragraph (1) or (2).
                    ``(B) Withholding of assistance.--During 
                any fiscal year described in subparagraph (A), 
                the Secretary shall withhold all assistance 
                that would otherwise be provided to the public 
                housing agency. If the public housing agency 
                cures its failure to comply during the year, it 
                shall be provided with the share attributable 
                to the months remaining in the year.
                    ``(C) Redistribution.--The total amount of 
                any funds not provided public housing agencies 
                by operation of this paragraph shall be 
                allocated for agencies determined under section 
                6(j) to be high-performing.
            ``(4) Exception to obligation requirements.--
                    ``(A) In general.--Subject to subparagraph 
                (B), if the Secretary has consented, before the 
                effective date under section 503(a) of the 
                Quality Housing and Work Responsibility Act of 
                1998, to an obligation period for any agency 
                longer than provided under paragraph (1), a 
                public housing agency that obligates its funds 
                before the expiration of that period shall not 
                be considered to be in violation of paragraph 
                (1).
                    ``(B) Prior fiscal years.--Notwithstanding 
                subparagraph (A), any funds appropriated to a 
                public housing agency for fiscal year 1997 or 
                prior fiscal years shall be fully obligated by 
                the public housing agency not later than 
                September 30, 1999.
            ``(5) Expenditure of amounts.--
                    ``(A) In general.--A public housing agency 
                shall spend any assistance received under this 
                section not later than 4 years (plus the period 
                of any extension approved by the Secretary 
                under paragraph (2)) after the date on which 
                funds become available to the agency for 
                obligation.
                    ``(B) Enforcement.--The Secretary shall 
                enforce the requirement of subparagraph (A) 
                through default remedies up to and including 
                withdrawal of the funding.
            ``(6) Right of recapture.--Any obligation entered 
        into by a public housing agency shall be subject to the 
        right of the Secretary to recapture the obligated 
        amounts for violation by the public housing agency of 
        the requirements of this subsection.
    ``(k) Emergency Reserve and Use of Amounts.--
            ``(1) Set-asides.--In each fiscal year after fiscal 
        year 1999, the Secretary shall set aside, for use in 
        accordance with this subsection, not more than 2 
        percent of the total amount made available to carry out 
        this section for such fiscal year. In addition to 
        amounts set aside under the preceding sentence, in each 
        fiscal year the Secretary may set from the total amount 
        made available to carry out this section for such 
        fiscal year not more than $20,000,000 for the Operation 
        Safe Home program administered by the Office of the 
        Inspector General of the Department of Housing and 
        Urban Development, for law enforcement efforts to 
        combat violent crime on or near the premises of public 
        and federally assisted housing.
            ``(2) Use of funds.--Amounts set aside under 
        paragraph (1) shall be available to the Secretary for 
        use for assistance, as provided in paragraph (3), in 
        connection with--
                    ``(A) emergencies and other disasters; and
                    ``(C) housing needs resulting from any 
                settlement of litigation; and
            ``(3) Eligible uses.--In carrying out this 
        subsection, the Secretary may use amounts set aside 
        under this subsection to provide--
                    ``(A) assistance for any eligible use under 
                the Operating Fund or the Capital Fund 
                established by this section; or
                    ``(B) tenant-based assistance in accordance 
                with section 8.
            ``(4) Limitation.--With respect to any fiscal year, 
        the Secretary may carry over not more than a total of 
        $25,000,000 in unobligated amounts set aside under this 
        subsection for use in connection with the activities 
        described in paragraph (2) during the succeeding fiscal 
        year.
            ``(5) Publication.--The Secretary shall publish the 
        use of any amounts allocated under this subsection 
        relating to emergencies (other than disasters and 
        housing needs resulting from any settlement of 
        litigation) in the Federal Register.
    ``(l) Treatment of Nonrental Income.--A public housing 
agency that receives income from nonrental sources (as 
determined by the Secretary) may retain and use such amounts 
without any decrease in the amounts received under this section 
from the Capital or Operating Fund. Any such nonrental amounts 
retained shall be used only for low-income housing or to 
benefit the residents assisted by the public housing agency.
    ``(m) Provision of Only Capital or Operating Assistance.--
            ``(1) Authority.--In appropriate circumstances, as 
        determined by the Secretary, a public housing agency 
        may commit capital assistance only, or operating 
        assistance only, for public housing units, which 
        assistance shall be subject to all of the requirements 
        applicable to public housing except as otherwise 
        provided in this subsection.
            ``(2) Exemptions.--In the case of any public 
        housing unit assisted pursuant to the authority under 
        paragraph (1), the Secretary may, by regulation, reduce 
        the period under subsection (d)(3) or (e)(3), as 
        applicable, during which such units must be operated 
        under requirements applicable to public housing. In 
        cases in which there is commitment of operating 
        assistance but no commitment of capital assistance, the 
        Secretary may make section 8 requirements applicable, 
        as appropriate, by regulation.
    ``(n) Treatment of Public Housing.--
            ``(1) Certain state and city funded housing.--
                    ``(A) In general.--Notwithstanding any 
                other provision of this section--
                            ``(i) for purposes of determining 
                        the allocations from the Operating and 
                        Capital Funds pursuant to the formulas 
                        under subsections (d)(2) and (e)(2) and 
                        determining assistance pursuant to 
                        section 519(e) of the Quality Housing 
                        and Work Responsibility Act of 1998 and 
                        under section 9 or 14 of the United 
                        States Housing Act of 1937 (as in 
                        effect before the date of the enactment 
                        of this Act), for any period before the 
                        implementation of such formulas, the 
                        Secretary shall deem any covered 
                        locally developed public housing units 
                        as public housing units developed under 
                        this title and such units shall be 
                        eligible for such assistance; and
                            ``(ii) assistance provided under 
                        this section, under such section 
                        518(d)(3), or under such section 9 or 
                        14 to any public housing agency may be 
                        used with respect to any covered 
                        locally developed public housing units.
                    ``(B) Covered units.--For purposes of this 
                paragraph, the term `covered locally developed 
                public housing units' means--
                            ``(i) not more than 7,000 public 
                        housing units developed pursuant to 
                        laws of the State of New York and that 
                        received debt service and operating 
                        subsidies pursuant to such laws; and
                            ``(ii) not more than 5,000 dwelling 
                        units developed pursuant to section 34 
                        of chapter 121B of the General Laws of 
                        the State of Massachusetts.
            ``(2) Reduction of asthma incidence.--
        Notwithstanding any other provision of this section, 
        the New York City Housing Authority may, in its sole 
        discretion, from amounts provided from the Operating 
        and Capital Funds, or from amounts provided for public 
        housing before amounts are made available from such 
        Funds, use not more than exceeding $500,000 per year 
        for the purpose of initiating, expanding or continuing 
        a program for the reduction of the incidence of asthma 
        among residents. The Secretary shall consult with the 
        Administrator of the Environmental Protection Agency 
        and the Secretary of Health and Human Services to 
        identify and consider sources of funding for the 
        reduction of the incidence of asthma among recipients 
        of assistance under this title.
            ``(3) Services for elderly residents.--
        Notwithstanding any other provision of this section, 
        the New York City Housing Authority may, in its sole 
        discretion, from amounts provided from the Operating 
        and Capital Funds, or from amounts provided for public 
        housing before the amounts are made available from such 
        Funds, use not more than $600,000 per year for the 
        purpose of developing a comprehensive plan to address 
        the need for services for elderly residents. Such plan 
        may be developed by a partnership created by such 
        Housing Authority and may include the creation of a 
        model project for assisted living at one or more 
        developments. The model project may provide for 
        contracting with private parties for the delivery of 
        services.
            ``(4) Effective date.--This subsection shall apply 
        to fiscal year 1999 and each fiscal year thereafter.''.
    (b) Allocation of Assistance.--Section 6 of the United 
States Housing Act of 1937 (42 U.S.C. 1437d) is amended by 
striking subsection (p).
    (c) Conforming Amendments.--The United States Housing Act 
of 1937 (42 U.S.C. 1437 et seq.) is amended--
            (1) in section 303(b)(10) (42 U.S.C. 1437aaa-
        2(b)(10)), by striking ``under section 9'' the first 
        place it appears and inserting ``from the Operating 
        Fund''; and
            (2) in section 305(e) (42 U.S.C. 1437aaa-4(e)), by 
        striking ``Operating subsidies'' and inserting 
        ``Amounts from an allocation from the Operating Fund''.
    (d) Transitional Ceiling Rents.--Notwithstanding section 
3(a)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(1)), during the period ending upon the later of the 
implementation of the formulas established pursuant to 
subsections (d)(2) and (e)(2) of such Act (as amended by this 
section) and October 1, 1999, a public housing agency may take 
any of the following actions with respect to public housing:
            (1) New provisions.--An agency may--
                    (A) adopt and apply ceiling rents that 
                reflect the reasonable market value of the 
                housing, but that are not less than--
                            (i) for housing other than housing 
                        predominantly for elderly or disabled 
                        families (or both), 75 percent of the 
                        monthly cost to operate the housing of 
                        the agency;
                            (ii) for housing predominantly for 
                        elderly or disabled families (or both), 
                        100 percent of the monthly cost to 
                        operate the housing of the agency; and
                            (iii) the monthly cost to make a 
                        deposit to a replacement reserve (in 
                        the sole discretion of the public 
                        housing agency); and
                    (B) allow families to pay ceiling rents 
                referred to in subparagraph (A), unless, with 
                respect to any family, the ceiling rent 
                established under this paragraph would exceed 
                the amount payable as rent by that family under 
                paragraph (1).
            (2) Ceiling rents from balanced budget act, I.--An 
        agency may utilize the authority under section 3(a)(2) 
        of the United States Housing Act of 1937 (42 U.S.C. 
        1437a(a)(2)), as in effect immediately before the 
        enactment of this Act, notwithstanding any amendment to 
        such section made by this Act.
            (3) Transitional ceiling rents for balanced budget 
        act, I.--An agency may utilize the authority with 
        respect to ceiling rents under section 402(b)(2) of The 
        Balanced Budget Downpayment Act, I (42 U.S.C. 1437a 
        note), notwithstanding any other provision of law 
        (including the expiration of the applicability of such 
        section or the repeal of such section).
    (e) Transitional Provision of Assistance.--
            (1) In general.--Subject to paragraph (2), before 
        the implementation of formulas pursuant to sections 
        9(d)(2) and 9(e)(2) of the United States Housing Act of 
        1937 (as amended by subsection (a) of this section), 
        the Secretary shall provide that each public housing 
        agency shall receive funding under sections 9 and 14 of 
        the United States Housing Act of 1937, as those 
        sections existed immediately before the enactment of 
        this Act (except that such sections shall be subject to 
        any amendments to such sections that may be contained 
        in title II of this Act).
            (2) Qualifications.--Before the implementation of 
        formulas pursuant to sections 9(d)(2) and 9(e)(2) of 
        the United States Housing Act of 1937 (as amended by 
        subsection (a) of this section)--
                    (A) if a public housing agency establishes 
                a rental amount that is based on a ceiling rent 
                established pursuant to subsection (d)(1) of 
                this section, the Secretary shall take into 
                account any reduction of the per unit dwelling 
                rental income of the public housing agency 
                resulting from the use of that rental amount in 
                calculating the contributions for the public 
                housing agency for the operation of the public 
                housing under section 9 of the United States 
                Housing Act of 1937;
                    (B) if a public housing agency establishes 
                a rental amount that is based on an adjustment 
                to income under section 3(b)(5)(G) of the 
                United States Housing Act of 1937 (as in effect 
                immediately before the enactment of this Act), 
                the Secretary shall not take into account any 
                reduction of or any increase in the per unit 
                dwelling rental income of the public housing 
                agency resulting from the use of that rental 
                amount in calculating the contributions for the 
                public housing agency for the operation of the 
                public housing under section 9 of the United 
                States Housing Act of 1937; and
                    (C) if a public housing agency establishes 
                a rental amount other than as provided under 
                subparagraph (A) or (B) that is less than the 
                greatest of the amounts determined under 
                subparagraphs (A), (B), and (C) of section 
                3(a)(1) of the United States Housing Act of 
                1937, the Secretary shall not take into account 
                any reduction of the per unit dwelling rental 
                income of the public housing agency resulting 
                from the use of that rental amount in 
                calculating the contributions for the public 
                housing agency for the operation of the public 
                housing under section 9 of the United States 
                Housing Act of 1937.
    (f) Effective Date of Operating Formula.--Notwithstanding 
the effective date under section 503(a), the Secretary may 
extend the effective date of the formula under section 9(e)(2) 
of the United States Housing Act of 1937 (as amended by 
subsection (a) of this section) for up to 6 months if such 
additional time is necessary to implement such formula.
    (g) Effective Date.--Subsections (d), (e), and (f) shall 
take effect upon the date of the enactment of this Act.

SEC. 520. TOTAL DEVELOPMENT COSTS.

    (a) Definition.--Section 3(c)(1) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(c)(1)) is amended by 
inserting before the period at the end of the second sentence 
the following: ``, but does not include thecosts associated 
with the demolition of or remediation of environmental hazards 
associated with public housing units that will not be replaced on the 
project site, or other extraordinary site costs as determined by the 
Secretary''.
    (b) Determination.--Section 6(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(b)) is amended by adding 
at the end the following new paragraphs:
    ``(3) In calculating the total development cost of a 
project under paragraph (2), the Secretary shall consider only 
capital assistance provided by the Secretary to a public 
housing agency that are authorized for use in connection with 
the development of public housing, and shall exclude all other 
amounts, including amounts provided under--
            ``(A) the HOME investment partnerships program 
        authorized under title II of the Cranston-Gonzalez 
        National Affordable Housing Act; or
            ``(B) the community development block grants 
        program under title I of the Housing and Community 
        Development Act of 1974.
    ``(4) The Secretary may restrict the amount of capital 
funds that a public housing agency may use to pay for housing 
construction costs. For purposes of this paragraph, housing 
construction costs include the actual hard costs for the 
construction of units, builders' overhead and profit, utilities 
from the street, and finish landscaping.''.

SEC. 521. SANCTIONS FOR IMPROPER USE OF AMOUNTS.

    Section 6(j) of the United States Housing Act of 1937 (42 
U.S.C. 1437d(j)) is amended--
            (1) by redesignating paragraph (4) as paragraph 
        (5); and
            (2) by inserting after paragraph (3) the following 
        new paragraph:
    ``(4) Sanctions for improper use of amounts.--
            ``(A) In general.--In addition to any other actions 
        authorized under this Act, if the Secretary finds that 
        a public housing agency receiving assistance amounts 
        under section 9 for public housing has failed to comply 
        substantially with any provision of this Act relating 
        to the public housing program, the Secretary may--
                    ``(i) terminate assistance payments under 
                this section 9 to the agency;
                    ``(ii) withhold from the agency amounts 
                from the total allocations for the agency 
                pursuant to section 9;
                    ``(iii) reduce the amount of future 
                assistance payments under section 9 to the 
                agency by an amount equal to the amount of such 
                payments that were not expended in accordance 
                with this Act;
                    ``(iv) limit the availability of assistance 
                amounts provided to the agency under section 9 
                to programs, projects, or activities not 
                affected by such failure to comply;
                    ``(v) withhold from the agency amounts 
                allocated for the agency under section 8; or
                    ``(vi) order other corrective action with 
                respect to the agency.
            ``(B) Termination of compliance action.--If the 
        Secretary takes action under subparagraph (A) with 
        respect to a public housing agency, the Secretary 
        shall--
                    ``(i) in the case of action under 
                subparagraph (A)(i), resume payments of 
                assistance amounts under section 9 to the 
                agency in the full amount of the total 
                allocations under section 9 for the agency at 
                the time that the Secretary first determines 
                that the agency will comply with the provisions 
                of this Act relating to the public housing 
                program;
                    ``(ii) in the case of action under clause 
                (ii) or (v) of subparagraph (A), make withheld 
                amounts available as the Secretary considers 
                appropriate to ensure that the agency complies 
                with the provisions of this Act relating to 
                such program;
                    ``(iii) in the case of action under 
                subparagraph (A)(iv), release such restrictions 
                at the time that the Secretary first determines 
                that the agency will comply with the provisions 
                of this Act relating to such program; or
                    ``(iv) in the case of action under 
                subparagraph (vi), cease such action at the 
                time that the Secretary first determines that 
                the agency will comply with the provisions of 
                this Act relating to such program.''.

SEC. 522. REPEAL OF MODERNIZATION FUND.

    (a) In General.--Section 14 of the United States Housing 
Act of 1937 (42 U.S.C. 1437l) is hereby repealed.
    (b) Conforming Amendments.--
            (1) Funds for public housing development.--Section 
        5(c)(5) of the United States Housing Act of 1937 (42 
        U.S.C. 1437c(c)(5)) is amended by striking ``for use 
        under section 14 or'' and inserting ``for use under 
        section 9 or''.
            (2) Allocation of assistance.--Section 
        213(d)(1)(B)(ii) of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 1439(d)(1)(B)(i)) is 
        amended by striking ``or 14''.
            (3) Moving to work demonstration.--Section 204 of 
        the Departments of Veterans Affairs and Housing and 
        Urban Development, and Independent Agencies 
        Appropriations Act, 1996 (as contained in section 
        101(e) of the Omnibus Consolidated Rescissions and 
        Appropriations Act of 1996; 42 U.S.C. 1437f) is amended 
        by adding at the end the following new subsection:
    ``(j) Capital and Operating Fund Assistance.--With respect 
to any public housing agency participating in the demonstration 
under this section that receives assistance from the Capital or 
Operating Fund under section 9 of the United States Housing Act 
of 1937 (as amended by the Quality Housing and Work 
Responsibility Act of 1998), for purposes of this section--
            ``(1) any reference to assistance under section 9 
        of the United States Housing Act of 1937 shall be 
        considered to refer also to assistance provided from 
        the Operating Fund under section 9(e) of such Act (as 
        so amended); and
            ``(2) any reference to assistance under section 14 
        of the United States Housing Act of 1937 shall be 
        considered to refer also to assistance provided from 
        the Capital Fund under section 9(d) of such Act (as so 
        amended).''.
            (4) Lead-based paint poisoning prevention act.--
        Section 302 of the Lead-Based Paint Poisoning 
        Prevention Act (42 U.S.C. 4822) is amended--
                    (A) in subsection (d)(1)--
                            (i) by striking ``assisted under 
                        section 14'' and inserting ``assisted 
                        with capital assistance provided under 
                        section 9''; and
                            (ii) by striking ``assistance under 
                        section 14'' and inserting ``capital 
                        assistance provided under section 9''; 
                        and
                    (B) in subsection (f), by striking ``for 
                comprehensive improvement assistance under 
                section 14'' and inserting ``under the Capital 
                Fund under section 9''.
            (5) HOME program assistance.--Section 212(d)(5) of 
        the Cranston-Gonzalez National Affordable Housing Act 
        (42 U.S.C. 12742(d)(5)) is amended by striking 
        ``section 14'' and inserting ``section 9(d)(1)''.
    (c) Savings Provisions.--
            (1) In general.--Section 14 of the United States 
        Housing Act of 1937 shall apply as provided in section 
        519(e) of this Act.
            (2) Expansion of use of modernization funding.--
        Before the implementation of formulas pursuant to 
        sections 9(d)(2) and 9(e)(2) of the United States 
        Housing Act of 1937 (as amended by section 519(a) of 
        this Act) an agency may utilize any authority provided 
        under or pursuant to section 14(q) of such Act 
        (including the authority under section 201(a) of the 
        Departments of Veterans Affairs and Housing and Urban 
        Development, and Independent Agencies Appropriations 
        Act, 1996 (Public Law 104-134; 110 Stat. 1321-277)), as 
        such provisions (including such section 201(a) may be 
        amended thereafter, including any amendment made by 
        title II of this Act), notwithstanding any other 
        provision of law (including the repeal made under this 
        section, the expiration of the applicability of such 
        section 201, or any repeal of such section 201).
            (3) Effective date.--This subsection shall take 
        effect on the date of the enactment of this Act.

             PART 2--ADMISSIONS AND OCCUPANCY REQUIREMENTS

SEC. 523. FAMILY CHOICE OF RENTAL PAYMENT.

    Paragraph (2) of section 3(a) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(a)(2)) is amended to read as 
follows:
    ``(2) Rental payments for public housing families.--
            ``(A) Authority for family to select.--
                    ``(i) In general.--A family residing in a 
                public housing dwelling shall pay as monthly 
                rent for the unit the amount determined under 
                clause (i) or (ii) of subparagraph (B), subject 
                to the requirement under paragraph (3) 
                (relating to minimum rents). Each public 
                housing agency shall provide for each family 
                residing in a public housing dwelling unit 
                owned, assisted, or operated by the agency to 
                elect annually whether the rent paid by such 
                family shall be determined under clause (i) or 
                (ii) of subparagraph (B). A public housing 
                agency may not at any time fail to provide both 
                such rent options for any public housing 
                dwelling unit owned, assisted, or operated by 
                the agency.
                    ``(ii) Authority to retain flat and ceiling 
                rents.--Notwithstanding clause (i) or any other 
                provision of law, any public housing agency 
                that is administering flat rents or ceiling 
                rents pursuant to any authority referred to in 
                section 519(d) of the Quality Housing and Work 
                Responsibility Act of 1998 before the effective 
                day of such Act may continue to charge rent in 
                accordance with such rent provisions after such 
                effective date, except that the agency shall 
                provide for families residing in public housing 
                dwelling units owned or operated by the agency 
                to elect annually whether to pay rent under 
                such provisions or in accordance with one of 
                the rent options referred to in subparagraph 
                (A).
            ``(B) Allowable rent structures.--
                    ``(i) Flat rents.--Except as otherwise 
                provided under this clause, each public housing 
                agency shall establish, for each dwelling unit 
                in public housing owned or operated by the 
                agency, a flat rental amount for the dwelling 
                unit, which shall--
                            ``(I) be based on the rental value 
                        of the unit, as determined by the 
                        public housing agency; and
                            ``(II) be designed in accordance 
                        with subparagraph (D) so that the rent 
                        structures do not create a disincentive 
                        for continued residency in public 
                        housing by families who are attempting 
                        to become economically self-sufficient 
                        through employment or who have attained 
                        a level of self-sufficiency through 
                        their own efforts.
                The rental amount for a dwelling unit shall be 
                considered to comply with the requirements of 
                this clause if such amount does not exceed the 
                actual monthly costs to the public housing 
                agency attributable to providing and operating 
                the dwelling unit. The preceding sentence may 
                not be construed to require establishment of 
                rental amounts equal to or based on operating 
                costs or to prevent public housing agencies 
                from developing flat rents required under this 
                clause in any other manner that may comply with 
                this clause.
                    ``(ii) Income-based rents.--
                            ``(I) In general.--The monthly 
                        rental amount determined under this 
                        clause for a family shall be an amount, 
                        determined by the public housing 
                        agency, that does not exceed the 
                        greatest of the amounts (rounded to the 
                        nearest dollar) determined under 
                        subparagraphs (A), (B), and (C) of 
                        paragraph (1). This clause may not be 
                        construed to require a public housing 
                        agency to charge a monthly rent in the 
                        maximum amount permitted under this 
                        clause.
                            ``(II) Discretion.--Subject to the 
                        limitation on monthly rental amount 
                        under subclause (I), a public housing 
                        agency may, in its discretion, 
                        implement a rent structure under this 
                        clause requiring that a portion of the 
                        rent be deposited to an escrow or 
                        savings account, imposing ceiling 
                        rents, or adopting income exclusions 
                        (such as those set forth in section 
                        3(b)(5)(B)), or may establish another 
                        reasonable rent structure or amount.
            ``(C) Switching rent determination methods because 
        of hardship circumstances.--Notwithstanding 
        subparagraph (A), in the case of a family that has 
        elected to pay rent in the amount determined under 
        subparagraph (B)(i), a public housing agency shall 
        immediately provide for the family to pay rent in the 
        amount determined under subparagraph (B)(ii) during the 
        period for which such election was made upon a 
        determination that the family is unable to pay the 
        amount determined under subparagraph (B)(i) because of 
        financial hardship, including--
                    ``(i) situations in which the income of the 
                family has decreased because of changed 
                circumstances, loss of reduction of employment, 
                death in the family, and reduction in or loss 
                of income or other assistance;
                    ``(ii) an increase, because of changed 
                circumstances, in the family's expenses for 
                medical costs, child care, transportation, 
                education, or similar items; and
                    ``(iii) such other situations as may be 
                determined by the agency.
            ``(D) Encouragement of self-sufficiency.--The 
        rental policy developed by each public housing agency 
        shall encourage and reward employment and economic 
        self-sufficiency.
            ``(E) Income reviews.--Notwithstanding the second 
        sentence of paragraph (1), in the case of families that 
        are paying rent in the amount determined under 
        subparagraph (B)(i), the agency shall review the income 
        of such family not less than once every 3 years.''.

SEC. 524. OCCUPANCY BY POLICE OFFICERS AND OVER-INCOME FAMILIES.

    (a) In General.--Section 3(a) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(a), as amended by the preceding 
provisions of this Act, is further amended by adding at the end 
the following new paragraphs:
            ``(4) Occupancy by police officers.--
                    ``(A) In general.--Subject to subparagraph 
                (B) and notwithstanding any other provision of 
                law, a public housing agency may, in accordance 
                with the public housing agency plan for the 
                agency, allow a police officer who is not 
                otherwise eligible for residence in public 
                housing to reside in a public housing dwelling 
                unit. The number and location of units occupied 
                by police officers under this paragraph and the 
                terms and conditions of their tenancies shall 
                be determined by the public housing agency.
                    ``(B) Increased security.--A public housing 
                agency may take the actions authorized in 
                subparagraph (A) only for the purpose of 
                increasing security for the residents of a 
                public housing project.
                    ``(C) Definition.--In this paragraph, the 
                term `police officer' means any person 
                determined by a public housing agency to be, 
                during the period of residence of that person 
                in public housing, employed on a full-time 
                basis as a duly licensed professional police 
                officer by a Federal, State, or local 
                government or by any agency thereof (including 
                a public housing agency having an accredited 
                police force).
            ``(5) Occupancy by over-income families in certain 
        public housing.--
                    ``(A) Authority.--Notwithstanding any other 
                provision of law, a public housing agency that 
                owns or operates less than 250 units may, on a 
                month-to-month basis, lease a dwelling unit in 
                a public housing project to an over-income 
                family in accordance with this paragraph, but 
                only if there are no eligible families applying 
                for housing assistance from the public housing 
                agency for that month and the agency provides 
                not less than 30-day public notice of the 
                availability of such assistance.
                    ``(B) Terms and conditions.--The number and 
                location of dwelling units of a public housing 
                agency occupied under this paragraph by over-
                income families, and the terms and conditions 
                of those tenancies, shall be determined by the 
                public housing agency, except that--
                            ``(i) notwithstanding paragraph 
                        (2), rent for a unit shall be in an 
                        amount that is not less than the costs 
                        to operate the unit;
                            ``(ii) if an eligible family 
                        applies for residence after an over-
                        income family moves in to the last 
                        available unit, the over-income family 
                        shall vacate the unit in accordance 
                        with notice of termination of tenancy 
                        provided by the agency, which shall be 
                        provided not less than 30 days before 
                        such termination; and
                            ``(iii) if a unit is vacant and 
                        there is no one on the waiting list, 
                        the public housing agency may allow an 
                        over-income family to gain immediate 
                        occupancy in the unit, while 
                        simultaneously providing reasonable 
                        public notice and outreach with regard 
                        to availability of the unit.
                    ``(C) Definition.--For purposes of this 
                paragraph, the term `over-income family' means 
                an individual or family that is not a low-
                income family at the time of initial 
                occupancy.''.
    (b) Applicability.--The amendment made by this paragraph is 
made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 525. SITE-BASED WAITING LISTS.

    Section 6 of the United States Housing Act of 1937 (42 
U.S.C. 1437d) is amended by adding at the end the following new 
subsection:
    ``(s) Site-Based Waiting Lists.--
            ``(1) Authority.--A public housing agency may 
        establish procedures for maintaining waiting lists for 
        admissions to public housing projects of the agency, 
        which may include (notwithstanding any other law, 
        regulation, handbook, or notice to the contrary) a 
        system of site-based waiting lists under which 
        applicants may apply directly at or otherwise designate 
        the project or projects in which they seek to reside. 
        All such procedures shall comply with all provisions of 
        title VI of the Civil Rights Act of 1964, the Fair 
        Housing Act, and other applicable civil rights laws.
            ``(2) Notice.--Any system described in paragraph 
        (1) shall provide for the full disclosure by the public 
        housing agency to each applicant of any option 
        available to the applicant in the selection of the 
        project in which to reside.''.

SEC. 526. PET OWNERSHIP.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following new 
section:

``SEC. 31. PET OWNERSHIP IN PUBLIC HOUSING.

    ``(a) Ownership Conditions.--A resident of a dwelling unit 
in public housing (as such term is defined in subsection (c)) 
may own 1 or more common household pets or have 1 or more 
common household pets present in the dwelling unit of such 
resident, subject to the reasonable requirements of the public 
housing agency, if the resident maintains each pet responsibly 
and in accordance with applicable State and local public 
health, animal control, and animal anti-cruelty laws and 
regulations and with the policies established in the public 
housing agency plan for the agency.
    ``(b) Reasonable Requirements.--The reasonable requirements 
referred to in subsection (a) may include--
            ``(1) requiring payment of a nominal fee, a pet 
        deposit, or both, by residents owning or having pets 
        present, to cover the reasonable operating costs to the 
        project relating to the presence of pets and to 
        establish an escrow account for additional costs not 
        otherwise covered, respectively;
            ``(2) limitations on the number of animals in a 
        unit, based on unit size;
            ``(3) prohibitions on--
                    ``(A) types of animals that are classified 
                as dangerous; and
                    ``(B) individual animals, based on certain 
                factors, including the size and weight of the 
                animal; and
            ``(4) restrictions or prohibitions based on size 
        and type of building or project, or other relevant 
        conditions.
    ``(c) Pet Ownership in Public Housing Designated for 
Occupancy By Elderly or Handicapped Families.--For purposes of 
this section, the term `public housing' has the meaning given 
the term in section 3(b), except that such term does not 
include any public housing that is federally assisted rental 
housing for the elderly or handicapped, as such term is defined 
in section 227(d) of the Housing and Urban-Rural Recovery Act 
of 1983 (12 U.S.C. 1701r-1(d)).
    ``(d) Regulations.--This section shall take effect upon the 
date of the effectiveness of regulations issued by the 
Secretary to carry out this section. Such regulationsshall be 
issued after notice and opportunity for public comment in accordance 
with the procedure under section 553 of title 5, United States Code, 
applicable to substantive rules (notwithstanding subsections (a)(2), 
(b)(B), and (d)(3) of such section).''.

   PART 3--MANAGEMENT, HOMEOWNERSHIP, AND DEMOLITION AND DISPOSITION

SEC. 529. CONTRACT PROVISIONS.

    Section 6 of the United States Housing Act of 1937 (42 
U.S.C. 1437d) is amended--
            (1) in subsection (c)(4)(E), by striking ``except 
        in the case of agencies not receiving operating 
        assistance under section 9'' and inserting ``for each 
        agency that receives assistance under this title''; and
            (2) by striking subsection (e).

SEC. 530. HOUSING QUALITY REQUIREMENTS.

    Section 6 of the United States Housing Act of 1937 (42 
U.S.C. 1437d) is amended by inserting after subsection (e) the 
following new subsection:
    ``(f) Housing Quality Requirements.--
            ``(1) In general.--Each contract for contributions 
        for a public housing agency shall require that the 
        agency maintain its public housing in a condition that 
        complies with standards which meet or exceed the 
        housing quality standards established under paragraph 
        (2).
            ``(2) Federal standards.--The Secretary shall 
        establish housing quality standards under this 
        paragraph that ensure that public housing dwelling 
        units are safe and habitable. Such standards shall 
        include requirements relating to habitability, 
        including maintenance, health and sanitation factors, 
        condition, and construction of dwellings, and shall, to 
        the greatest extent practicable, be consistent with the 
        standards established under section 8(o)(8)(B)(i). The 
        Secretary may determine whether the laws, regulations, 
        standards, or codes of any State or local jurisdiction 
        meet or exceed these standards, for purposes of this 
        subsection.
            ``(3) Annual inspections.--Each public housing 
        agency that owns or operates public housing shall make 
        an annual inspection of each public housing project to 
        determine whether units in the project are maintained 
        in accordance with the requirements under paragraph 
        (1). The agency shall retain the results of such 
        inspections and, upon the request of the Secretary, the 
        Inspector General for the Department of Housing and 
        Urban Development, or any auditor conducting an audit 
        under section 5(h), shall make such results 
        available.''.

SEC. 531. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

    (a) In General.--Section 18 of the United States Housing 
Act of 1937 (42 U.S.C. 1437p) is amended to read as follows:

``SEC. 18. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

    ``(a) Applications for Demolition and Disposition.--Except 
as provided in subsection (b), upon receiving an application by 
a public housing agency for authorization, with or without 
financial assistance under this title, to demolish or dispose 
of a public housing project or a portion of a public housing 
project (including any transfer to a resident-supported 
nonprofit entity), the Secretary shall approve the application, 
if the public housing agency certifies--
            ``(1) in the case of--
                    ``(A) an application proposing demolition 
                of a public housing project or a portion of a 
                public housing project, that--
                            ``(i) the project or portion of the 
                        public housing project is obsolete as 
                        to physical condition, location, or 
                        other factors, making it unsuitable for 
                        housing purposes; and
                            ``(ii) no reasonable program of 
                        modifications is cost-effective to 
                        return the public housing project or 
                        portion of the project to useful life; 
                        and
                    ``(B) an application proposing the 
                demolition of only a portion of a public 
                housing project, that the demolition will help 
                to ensure the viability of the remaining 
                portion of the project;
            ``(2) in the case of an application proposing 
        disposition by sale or other transfer of a public 
        housing project or other real property subject to this 
        title--
                    ``(A) the retention of the property is not 
                in the best interests of the residents or the 
                public housing agency because--
                            ``(i) conditions in the area 
                        surrounding the public housing project 
                        adversely affect the health or safety 
                        of the residents or the feasible 
                        operation of the project by the public 
                        housing agency; or
                            ``(ii) disposition allows the 
                        acquisition, development, or 
                        rehabilitation of other properties that 
                        will be more efficiently or effectively 
                        operated as low-income housing;
                    ``(B) the public housing agency has 
                otherwise determined the disposition to be 
                appropriate for reasons that are--
                            ``(i) in the best interests of the 
                        residents and the public housing 
                        agency;
                            ``(ii) consistent with the goals of 
                        the public housing agency and the 
                        public housing agency plan; and
                            ``(iii) otherwise consistent with 
                        this title; or
                    ``(C) for property other than dwelling 
                units, the property is excess to the needs of a 
                public housing project or the disposition is 
                incidental to, or does not interfere with, 
                continued operation of a public housing 
                project;
            ``(3) that the public housing agency has 
        specifically authorized the demolition or disposition 
        in the public housing agency plan, and has certified 
        that the actions contemplated in the public housing 
        agency plan comply with this section;
            ``(4) that the public housing agency--
                    ``(A) will notify each family residing in a 
                project subject to demolition or disposition 
90days prior to the displacement date, except in cases of imminent 
threat to health or safety, consistent with any guidelines issued by 
the Secretary governing such notifications, that--
                            ``(i) the public housing project 
                        will be demolished or disposed of;
                            ``(ii) the demolition of the 
                        building in which the family resides 
                        will not commence until each resident 
                        of the building is relocated; and
                            ``(iii) each family displaced by 
                        such action will be offered comparable 
                        housing--
                                    ``(I) that meets housing 
                                quality standards;
                                    ``(II) that is located in 
                                an area that is generally not 
                                less desirable than the 
                                location of the displaced 
                                person's housing; and
                                    ``(III) which may include--
                                            ``(aa) tenant-based 
                                        assistance, except that 
                                        the requirement under 
                                        this clause regarding 
                                        offering of comparable 
                                        housing shall be 
                                        fulfilled by use of 
                                        tenant-based assistance 
                                        only upon the 
                                        relocation of such 
                                        family into such 
                                        housing;
                                            ``(bb) project-
                                        based assistance; or
                                            ``(cc) occupancy in 
                                        a unit operated or 
                                        assisted by the public 
                                        housing agency at a 
                                        rental rate paid by the 
                                        family that is 
                                        comparable to the 
                                        rental rate applicable 
                                        to the unit from which 
                                        the family is vacated;
                    ``(B) will provide for the payment of the 
                actual and reasonable relocation expenses of 
                each resident to be displaced;
                    ``(C) will ensure that each displaced 
                resident is offered comparable housing in 
                accordance with the notice under subparagraph 
                (A); and
                    ``(D) will provide any necessary counseling 
                for residents who are displaced; and
                    ``(E) will not commence demolition or 
                complete disposition until all residents 
                residing in the building are relocated;
            ``(5) that the net proceeds of any disposition will 
        be used--
                    ``(A) unless waived by the Secretary, for 
                the retirement of outstanding obligations 
                issued to finance the original public housing 
                project or modernization of the project; and
                    ``(B) to the extent that any proceeds 
                remain after the application of proceeds in 
                accordance with subparagraph (A), for--
                            ``(i) the provision of low-income 
                        housing or to benefit the residents of 
                        the public housing agency; or
                            ``(ii) leveraging amounts for 
                        securing commercial enterprises, on-
                        site in public housing projects of the 
                        public housing agency, appropriate to 
                        serve the needs of the residents; and
            ``(6) that the public housing agency has complied 
        with subsection (c).
    ``(b) Disapproval of Applications.--The Secretary shall 
disapprove an application submitted under subsection (a) if the 
Secretary determines that--
            ``(1) any certification made by the public housing 
        agency under that subsection is clearly inconsistent 
        with information and data available to the Secretary or 
        information or data requested by the Secretary; or
            ``(2) the application was not developed in 
        consultation with--
                    ``(A) residents who will be affected by the 
                proposed demolition or disposition;
                    ``(B) each resident advisory board and 
                resident council, if any, of the project (or 
                portion thereof) that will be affected by the 
                proposed demolition or disposition; and
                    ``(C) appropriate government officials.
    ``(c) Resident Opportunity To Purchase in Case of Proposed 
Disposition.--
            ``(1) In general.--In the case of a proposed 
        disposition of a public housing project or portion of a 
        project, the public housing agency shall, in 
        appropriate circumstances, as determined by the 
        Secretary, initially offer the property to any eligible 
        resident organization, eligible resident management 
        corporation, or nonprofit organization acting on behalf 
        of the residents, if that entity has expressed an 
        interest, in writing, to the public housing agency in a 
        timely manner, in purchasing the property for continued 
        use as low-income housing.
            ``(2) Timing.--
                    ``(A) Expression of interest.--A resident 
                organization, resident management corporation, 
                or other resident-supported nonprofit entity 
                referred to in paragraph (1) may express 
                interest in purchasing property that is the 
                subject of a disposition, as described in 
                paragraph (1), during the 30-day period 
                beginning on the date of notification of a 
                proposed sale of the property.
                    ``(B) Opportunity to arrange purchase.--If 
                an entity expresses written interest in 
                purchasing a property, as provided in 
                subparagraph (A), no disposition of the 
                property shall occur during the 60-day period 
                beginning on the date of receipt of that 
                written notice (other than to the entity 
                providing the notice), during which time that 
                entity shall be given the opportunity to obtain 
                a firm commitment for financing the purchase of 
                the property.
    ``(d) Replacement Units.--Notwithstanding any other 
provision of law, replacement public housing units for public 
housing units demolished in accordance with this section may be 
built on the original public housing location or in the same 
neighborhood as the original public housing location if the 
number of the replacement public housing units is significantly 
fewer than the number of units demolished.
    ``(e) Consolidation of Occupancy Within or Among 
Buildings.--Nothing in this section may be construed to prevent 
a public housing agency from consolidating occupancy within or 
among buildings of a public housing project, or among projects, 
or with other housing for the purpose of improving living 
conditions of, or providing more efficient services to, 
residents.
    ``(f) De Minimis Exception to Demolition Requirements.--
Notwithstanding any other provision of this section, in any 5-
year period a public housing agency may demolish not more than 
the lesser of 5 dwelling units or 5 percent of the total 
dwelling units owned by the public housing agency, but only if 
the space occupied by the demolished unit is used for meeting 
the service or other needs of public housing residents or the 
demolished unit was beyond repair.
    ``(g) Uniform Relocation and Real Property Acquisition 
Act.--The Uniform Relocation and Real Property Acquisition 
Policies Act of 1970 shall not apply to activities under this 
section.
    ``(h) Relocation and Replacement.--Of the amounts 
appropriated for tenant-based assistance under section 8 in any 
fiscal year, the Secretary may use such sums as are necessary 
for relocation and replacement housing for dwelling units that 
are demolished and disposed of from the public housing 
inventory (in addition to other amounts that may be available 
for such purposes).''.
    (b) Homeownership Replacement Plan.--
            (1) In general.--Notwithstanding subsections (b) 
        and (c) of section 1002 of the Emergency Supplemental 
        Appropriations for Additional Disaster Assistance, for 
        Anti-terrorism Initiatives, for Assistance in the 
        Recovery from the Tragedy that Occurred At Oklahoma 
        City, and Rescissions Act, 1995 (Public Law 104-19; 109 
        Stat. 236), subsection (g) of section 304 of the United 
        States Housing Act of 1937 (42 U.S.C. 1437aaa-3(g)) is 
        repealed.
            (2) Effective date.--The amendment made by 
        paragraph (1) shall be effective with respect to any 
        plan for the demolition, disposition, or conversion to 
        homeownership of public housing that is approved by the 
        Secretary after September 30, 1995.
    (c) Treatment of Frost-Leland Provisions.--Notwithstanding 
any other provision of law, on and after the date of enactment 
of this Act, the public housing projects described in section 
415 of the Department of Housing and Urban Development--
Independent Agencies Appropriations Act, 1988 (Public Law 100-
202; 101 Stat. 1329-213), as in effect on April 25, 1996, shall 
be eligible for demolition under--
            (1) section 9 of the United States Housing Act of 
        1937, as amended by this Act; and
            (2) section 14 of the United States Housing Act of 
        1937, as that section existed on the day before the 
        date of enactment of this Act.
    (c) Applicability.--This section shall take effect on, and 
the amendments made by this section are made on, and shall 
apply beginning upon, the date of the enactment of this Act.

SEC. 532. RESIDENT COUNCILS AND RESIDENT MANAGEMENT CORPORATIONS.

    (a) Resident Management.--Section 20 of the United States 
Housing Act of 1937 (42 U.S.C. 1437r) is amended--
            (1) in subsection (b)(4), by inserting after 
        ``materials'' the following: ``, rent determination, 
        community service requirements,'';
            (2) by striking subsection (c) and inserting the 
        following new subsection:
    ``(c) Assistance Amounts.--A contract under this section 
for management of a public housing project by a resident 
management corporation shall provide for--
            ``(1) the public housing agency to provide a 
        portion of the assistance to agency from the Capital 
        and Operating Funds to the resident management 
        corporation in accordance with subsection (e) for 
        purposes of operating the public housing project 
        covered by the contract and performing such other 
        eligible activities with respect to the project as may 
        be provided under the contract;
            ``(2) the amount of income expected to be derived 
        from the project itself (from sources such as rents and 
        charges);
            ``(3) the amount of income to be provided to the 
        project from the other sources of income of the public 
        housing agency (such as interest income, administrative 
        fees, and rents); and
            ``(4) any income generated by a resident management 
        corporation of a public housing project that exceeds 
        the income estimated under the contract shall be used 
        for eligible activities under subsections (d)(1) and 
        (e)(1) of section 9.'';
            (3) in subsection (d), by striking paragraph (3) 
        and redesignating paragraph (4) as paragraph (3);
            (4) in subsection (e)--
                    (A) by redesignating paragraph (4) as 
                paragraph (6);
                    (B) by striking the subsection designation 
                and heading and all that follows through the 
                end of paragraph (3) and inserting the 
                following:
    ``(e) Direct Provision of Operating and Capital 
Assistance.--
            ``(1) In general.--The Secretary shall directly 
        provide assistance from the Operating and Capital Funds 
        to a resident management corporation managing a public 
        housing development pursuant to a contract under this 
        section, but only if--
                    ``(A) the resident management corporation 
                petitions the Secretary for the release of the 
                funds;
                    ``(B) the contract provides for the 
                resident management corporation to assume the 
                primary management responsibilities of the 
                public housing agency; and
                    ``(C) the Secretary determines that the 
                corporation has the capability to effectively 
                discharge such responsibilities.
            ``(2) Use of assistance.--Any assistance from the 
        Operating and Capital Funds provided to a resident 
        management corporation pursuant to this subsection 
        shall be used for purposes of operating the public 
        housing developments of the agency and performing such 
        other eligible activities with respect to public 
        housing as may be provided under the contract.
            ``(3) Responsibility of public housing agency.--If 
        the Secretary provides direct funding to a resident 
        management corporation under this subsection, the 
        public housing agency shall not be responsible for the 
        actions of the resident management corporation.
            ``(4) Calculation of operating fund allocation.--
        Notwithstanding any provision of section 9 or any 
        regulation under such section, and subject to the 
        exception provided in paragraph (3), the portion of the 
        amount received by a public housing agency under 
        section 9 that is due to an allocation from the 
        Operating Fund and that is allocated to a public 
        housing project managed by a resident management 
        corporation shall not be less than the public housing 
        agency per unit monthly amount provided in the previous 
        year as determined on an individual project basis.
            ``(5) Calculation of total income.--
                    ``(A) Subject to subparagraph (B), the 
                amount of funds provided by a public housing 
                agency to a public housing project managed by a 
                resident management corporation may not be 
                reduced during the 3-year period beginning on 
                the date of enactment of the Housing and 
                Community Development Act of 1987 or on any 
                later date on which a resident management 
                corporation is first established for the 
                project.
                    ``(B) If the total income of a public 
                housing agency (including any amounts from the 
                Capital or Operating Funds provided to the 
                public housing agency under section 9) is 
                reduced or increased, the income provided by 
                the public housing agency to a public housing 
                project managed by a resident management 
                corporation shall be reduced or increased in 
                proportion to the reduction or increase in the 
                total income of the public housing agency, 
                except that any reduction in amounts from the 
                Operating Fund that occurs as a result of 
                fraud, waste, or mismanagement by the public 
                housing agency shall not affect the funds 
                provided to the resident management 
                corporation.''; and
                    (C) in paragraph (6)(A) (as so redesignated 
                by subparagraph (A) of this paragraph), by 
                striking ``the operating subsidies provided 
                to'' and inserting ``the allocations from the 
                Operating Fund for''; and
            (5) by striking subsections (f) and (g).
    (b) Purchase by Resident Management Corporations.--Section 
21 of the United States Housing Act of 1937 (42 U.S.C. 1437s) 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)(A), by striking 
                ``comprehensive improvement assistance under 
                section 14'' and inserting ``assistance from 
                the Capital Fund'';
                    (B) in paragraph (3)(A)(v), by striking 
                ``minimum safety and livability standards 
                applicable under section 14'' and inserting 
                ``housing quality standards applicable under 
                section 6(f)'';
                    (C) in paragraph (7)--
                            (i) by striking ``Annual 
                        contributions'' and inserting ``Capital 
                        and operating assistance'';
                            (ii) in the first sentence, by 
                        striking ``pay annual contributions'' 
                        and inserting ``provide assistance 
                        under section 9''; and
                            (iii) by striking the last sentence 
                        and inserting the following: ``Such 
                        assistancemay not exceed the allocation 
for the project under section 9.''; and
                    (D) in paragraph (8), by striking 
                ``Operating subsidies.--Operating subsidies'' 
                and inserting ``Operating fund allocation.--
                Amounts from the Operating Fund'';
            (2) in subsection (b)(3)--
                    (A) by striking ``a certificate under 
                section 8(b)(1) or a housing voucher'' and 
                inserting ``tenant-based assistance''; and
                    (B) by striking ``fair market rent for such 
                certificate'' and inserting ``payment standard 
                for such assistance''; and
            (3) in subsection (d), by inserting ``, as in 
        effect before the effective date under section 503(a) 
        of the Quality Housing and Work Responsibility Act of 
        1998,'' after ``section 6(c)(4)(D)''.

SEC. 533. CONVERSION OF PUBLIC HOUSING TO VOUCHERS; REPEAL OF FAMILY 
                    INVESTMENT CENTERS.

    (a) In General.--Section 22 of the United States Housing 
Act of 1937 (42 U.S.C. 1437t) is amended to read as follows:

``SEC. 22. AUTHORITY TO CONVERT PUBLIC HOUSING TO VOUCHERS.

    ``(a) Authority.--A public housing agency may convert any 
public housing project (or portion thereof) owned by the public 
housing agency to tenant-based assistance, but only in 
accordance with the requirements of this section.
    ``(b) Conversion Assessment.--
            ``(1) In general.--To convert public housing under 
        this section, a public housing agency shall conduct an 
        assessment of the public housing that includes--
                    ``(A) a cost analysis that demonstrates 
                whether or not the cost (both on a net present 
                value basis and in terms of new budget 
                authority requirements) of providing tenant-
                based assistance under section 8 for the same 
                families in substantially similar dwellings 
                over the same period of time is less expensive 
                than continuing public housing assistance in 
                the public housing project for the remaining 
                useful life of the project;
                    ``(B) an analysis of the market value of 
                the public housing project both before and 
                after rehabilitation, and before and after 
                conversion;
                    ``(C) an analysis of the rental market 
                conditions with respect to the likely success 
                of the use of tenant-based assistance under 
                section 8 in that market for the specific 
                residents of the public housing project, 
                including an assessment of the availability of 
                decent and safe dwellings renting at or below 
                the payment standard established for tenant-
                based assistance under section 8 by the agency;
                    ``(D) the impact of the conversion to 
                tenant-based assistance under this section on 
                the neighborhood in which the public housing 
                project is located; and
                    ``(E) a plan that identifies actions, if 
                any, that the public housing agency would take 
                with regard to converting any public housing 
                project or projects (or portions thereof) of 
                the public housing agency to tenant-based 
                assistance.
            ``(2) Timing.--Not later than 2 years after the 
        effective date under section 503(a) of the Quality 
        Housing and Work Responsibility Act of 1998, each 
        public housing agency shall conduct an assessment under 
        paragraph (1) or (3) of the status of each public 
        housing project owned by such agency and shall submit 
        to the Secretary such assessment. A public housing 
        agency may otherwise undertake an assessment under this 
        subsection at any time and for any public housing 
        project (or portion thereof) owned by the agency. A 
        public housing agency may update a previously conducted 
        assessment for a project (or portion thereof) for 
        purposes of compliance with the one-year limitation 
        under subsection (c).
            ``(3) Streamlined Assessment.--At the discretion of 
        the Secretary or at the request of a public housing 
        agency, the Secretary may waive any or all of the 
        requirements of paragraph (1) or (3) or otherwise 
        require a streamlined assessment with respect to any 
        public housing project or class of public housing 
        projects.
    ``(c) Criteria for Implementation of Conversion Plan.--A 
public housing agency may convert a public housing project (or 
portion thereof) owned by the agency to tenant-based assistance 
only pursuant to a conversion assessment under subsection (b) 
that one year and that demonstrates that the conversion--
            ``(1) will not be more expensive than continuing to 
        operate the public housing project (or portion thereof) 
        as public housing;
            ``(2) will principally benefit the residents of the 
        public housing project (or portion thereof) to be 
        converted, the public housing agency, and the 
        community; and
            ``(3) will not adversely affect the availability of 
        affordable housing in such community.
    ``(d) Conversion Plan Requirement.--A public housing 
project may be converted under this section to tenant-based 
assistance only as provided in a conversion plan under this 
subsection, which has not been disapproved by the Secretary 
pursuant to subsection (e). Each conversion plan shall--
            ``(1) be developed by the public housing agency, in 
        consultation with the appropriate public officials, 
        with significant participation by the residents of the 
        project (or portion thereof) to be converted;
            ``(2) be consistent with and part of the public 
        housing agency plan;
            ``(3) describe the conversion and future use or 
        disposition of the project (or portion thereof) and 
        include an impact analysis on the affected community;
            ``(4) provide that the public housing agency 
        shall--
                    ``(A) notify each family residing in a 
                public housing project (or portion) to be 
                converted under the plan 90 days prior to the 
                displacement date except in cases of imminent 
                threat to health or safety, consistent with any 
                guidelines issued by the Secretary governing 
                such notifications, that--
                            ``(i) the public housing project 
                        (or portion) will be removed from the 
                        inventory of the public housing agency; 
                        and
                            ``(ii) each family displaced by 
                        such action will be offered comparable 
                        housing--
                                    ``(I) that meets housing 
                                quality standards;
                                    ``(II) that is located in 
                                an area that is generally not 
                                less desirable than the 
                                location of the displaced 
                                person's housing; and
                                    ``(III) which may include--
                                            ``(aa) tenant-based 
                                        assistance, except that 
                                        the requirement under 
                                        this clause regarding 
                                        offering of comparable 
                                        housing shall be 
                                        fulfilled by use of 
                                        tenant-based assistance 
                                        only upon the 
                                        relocation of such 
                                        family into such 
                                        housing;
                                            ``(bb) project-
                                        based assistance; or
                                            ``(cc) occupancy in 
                                        a unit operated or 
                                        assisted by the public 
                                        housing agency at a 
                                        rental rate paid by the 
                                        family that is 
                                        comparable to the 
                                        rental rate applicable 
                                        to the unit from which 
                                        the family is vacated;
                    ``(B) provide any necessary counseling for 
                families displaced by such action;
                    ``(C) ensure that, if the project (or 
                portion) converted is used as housing after 
                such conversion, each resident may choose to 
                remain in their dwelling unit in the project 
                and use the tenant-based assistance toward rent 
                for that unit; and
                    ``(D) provide any actual and reasonable 
                relocation expenses for families displaced by 
                the conversion; and
            ``(5) provide that any proceeds to the agency from 
        the conversion will be used subject to the limitations 
        that are applicable under section 18(a)(5) to proceeds 
        resulting from the disposition or demolition of public 
        housing.
    ``(e) Review and Approval of Conversion Plans.--The 
Secretary shall disapprove a conversion plan only if--
            ``(1) the plan is plainly inconsistent with the 
        conversion assessment for the agency developed under 
        subsection (b);
            ``(2) there is reliable information and data 
        available to the Secretary that contradicts that 
        conversion assessment; or
            ``(3) the plan otherwise fails to meet the 
        requirements of this section.
    ``(f) Tenant-Based Assistance.--To the extent approved by 
the Secretary, the funds used by the public housing agency to 
provide tenant-based assistance under section 8 shall be added 
to the annual contribution contract administered by the public 
housing agency.''.
    (b) Savings Provision.--The amendment made by subsection 
(a) shall not affect any contract or other agreement entered 
into under section 22 of the United States Housing Act of 1937, 
as such section existed immediately before the effective date 
under section 503(a) of the Quality Housing and Work 
Responsibility Act of 1998.

SEC. 534. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO INDEPENDENT 
                    MANAGER AT REQUEST OF RESIDENTS.

    The United States Housing Act of 1937 is amended by 
striking section 25 (42 U.S.C. 1437w) and inserting the 
following new section:

``SEC. 25. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO INDEPENDENT 
                    MANAGER AT REQUEST OF RESIDENTS.

    ``(a) Authority.--The Secretary may transfer the 
responsibility and authority for management of specified 
housing (as such term is defined in subsection (h)) from a 
public housing agency to an eligible management entity, in 
accordance with the requirements of this section, if--
            ``(1) a request for transfer of management of such 
        housing is made and approved in accordance with 
        subsection (b); and
            ``(2) the Secretary or the public housing agency, 
        as appropriate pursuant to subsection (b), determines 
        that--
                    ``(A) due to the mismanagement of the 
                agency, such housing has deferred maintenance, 
                physical deterioration, or obsolescence of 
                major systems and other deficiencies in the 
                physical plant of the project;
                    ``(B) such housing is located in an area 
                such that the housing is subject to recurrent 
                vandalism and criminal activity (including 
                drug-related criminal activity); and
                    ``(C) the residents can demonstrate that 
                the elements of distress for such housing 
                specified in subparagraphs (A) and (B) can be 
                remedied by an entity or entities, identified 
                by the residents, that has or have a 
                demonstrated capacity to manage, with 
                reasonable expenses for modernization.
    ``(b) Request for Transfer.--The responsibility and 
authority for managing specified housing may be transferred 
only pursuant to a request made by a majority vote of the 
residents for the specified housing that--
            ``(1) in the case of specified housing that is 
        owned by a public housing agency that is designated as 
        a troubled agency under section 6(j)(2)--
                    ``(A) is made to the public housing agency 
                or the Secretary; and
                    ``(B) is approved by the agency or the 
                Secretary; or
            ``(2) in the case of specified housing that is 
        owned by a public housing agency that is not designated 
        as a troubled agency under section 6(j)(2)--
                    ``(A) is made to and approved by the public 
                housing agency; or
                    ``(B) if a request is made to the agency 
                pursuant to subparagraph (A) and is not 
                approved, is subsequently made to and approved 
                by the Secretary.
    ``(c) Capital and Operating Assistance.--Pursuant to a 
contract under subsection (d), the Secretary shall require the 
public housing agency for specified housing to provide to the 
manager for the housing, from any assistance from the Capital 
and Operating Funds under section 9 for the agency, fair and 
reasonable amounts for the housing for eligible capital and 
operating activities under subsection (d)(1) and (e)(1) of 
section 9. The amount made available under this subsection to a 
manager shall be determined by the Secretary based on the share 
for the specified housing of the aggregate amount of assistance 
from such Funds for the public housing agency transferring the 
housing, taking into consideration the operating and capital 
improvement needs of the specified housing, the operating and 
capital improvement needs of the remaining public housing units 
managed by the public housing agency, and the public housing 
agency plan of such agency.
    ``(d) Contract Between Secretary and Manager.--
            ``(1) Requirements.--Pursuant to the approval of a 
        request under this section for transfer of the 
        management of specified housing, the Secretary shall 
        enter into a contract with the eligible management 
        entity.
            ``(2) Terms.--A contract under this subsection 
        shall contain provisions establishing the rights and 
        responsibilities of the manager with respect to the 
        specified housing and the Secretary and shall be 
        consistent with the requirements of this Act applicable 
        to public housing projects.
    ``(e) Compliance With Public Housing Agency Plan.--A 
manager of specified housing under this section shall comply 
with the approved public housing agency plan applicable to the 
housing and shall submit such information to the public housing 
agency from which management was transferred as may be 
necessary for such agency to prepare and update its public 
housing agency plan.
    ``(f) Demolition and Disposition by Manager.--A manager 
under this section may demolish or dispose of specified housing 
only if, and in the manner, provided for in the public housing 
agency plan for the agency transferring management of the 
housing.
    ``(g) Limitation on PHA Liability.--A public housing agency 
that is not a manager for specified housing shall not be liable 
for any act or failure to act by a manager or resident council 
for the specified housing.
    ``(h) Definitions.--For purposes of this section, the 
following definitions shall apply:
            ``(1) Eligible management entity.--The term 
        `eligible management entity' means, with respect to any 
        public housing project, any of the following entities:
                    ``(A) Nonprofit organization.--A public or 
                private nonprofit organization, which may--
                            ``(i) include a resident management 
                        corporation; and
                            ``(ii) not include the public 
                        housing agency that owns or operates 
                        the project.
                    ``(B) For-profit entity.--A for-profit 
                entity that has demonstrated experience in 
                providing low-income housing.
                    ``(C) State or local government.--A State 
                or local government, including an agency or 
                instrumentality thereof.
                    ``(D) Public housing agency.--A public 
                housing agency (other than the public housing 
                agency that owns or operates the project).
        The term does not include a resident council.
            ``(2) Manager.--The term `manager' means any 
        eligible management entity that has entered into a 
        contract under this section with the Secretary for the 
        management of specified housing.
            ``(3) Nonprofit.--The term `nonprofit' means, with 
        respect to an organization, association, corporation, 
        or other entity, that no part of the net earnings of 
        the entity inures to the benefit of any member, 
        founder, contributor, or individual.
            ``(4) Private nonprofit organization.--The term 
        `private nonprofit organization' means any private 
        organization (including a State or locally chartered 
        organization) that--
                    ``(A) is incorporated under State or local 
                law;
                    ``(B) is nonprofit in character;
                    ``(C) complies with standards of financial 
                accountability acceptable to the Secretary; and
                    ``(D) has among its purposes significant 
                activities related to the provision of decent 
                housing that is affordable to low-income 
                families.
            ``(5) Public nonprofit organization.--The term 
        `public nonprofit organization' means any public entity 
        that is nonprofit in character.
            ``(6) Specified housing.--The term `specified 
        housing' means a public housing project or projects, or 
        a portion of a project or projects, for which the 
        transfer of management is requested under this section. 
        The term includes one or more contiguous buildings and 
        an area of contiguous row houses, but in the case of a 
        single building, the building shall be sufficiently 
        separable from the remainder of the project of which it 
        is part to make transfer of the management of the 
        building feasible for purposes of this section.''.

SEC. 535. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
                    TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.

    (a) In General.--Section 24 of the United States Housing 
Act of 1937 (42 U.S.C. 1437v) is amended to read as follows:

``SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
                    TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.

    ``(a) Purposes.--The purpose of this section is to provide 
assistance to public housing agencies for the purposes of--
            ``(1) improving the living environment for public 
        housing residents of severely distressed public housing 
        projects through the demolition, rehabilitation, 
        reconfiguration, or replacement of obsolete public 
        housing projects (or portions thereof);
            ``(2) revitalizing sites (including remaining 
        public housing dwelling units) on which such public 
        housing projects are located and contributing to the 
        improvement of the surrounding neighborhood;
            ``(3) providing housing that will avoid or decrease 
        the concentration of very low-income families; and
            ``(4) building sustainable communities.
    ``(b) Grant Authority.--The Secretary may make grants as 
provided in this section to applicants whose applications for 
such grants are approved by the Secretary under this section.
    ``(c) Contribution Requirement.--
            ``(1) In general.--The Secretary may not make any 
        grant under this section to any applicant unless the 
        applicant certifies to the Secretary that the applicant 
        will--
                    ``(A) supplement the aggregate amount of 
                assistance provided under this section with an 
                amount of funds from sources other than this 
                section equal to not less than 5 percent of the 
                amount provided under this section; and
                    ``(B) in addition to supplemental amounts 
                provided in accordance with subparagraph (A), 
                if the applicant uses more than 5 percent of 
                the amount of assistance provided under this 
                section for services under subsection 
                (d)(1)(L), provide supplemental funds from 
                sources other than this section in an amount 
                equal to the amount so used in excess of 5 
                percent.
            ``(2) Supplemental funds.--In calculating the 
        amount of supplemental funds provided by a grantee for 
        purposes of paragraph (1), the grantee may include 
        amounts from other Federal sources, any State or local 
        government sources, any private contributions, the 
        value of any donated material or building, the value of 
        any lease on a building, the value of the time and 
        services contributed by volunteers, and the value of 
        any other in-kind services or administrative costs 
        provided.
            ``(3) Exemption.--If assistance provided under this 
        title will be used only for providing tenant-based 
        assistance under section 8 or demolition of public 
        housing (without replacement), the Secretary may exempt 
        the applicant from the requirements under paragraph 
        (1)(A).
    ``(d) Eligible Activities.--
            ``(1) In general.--Grants under this section may be 
        used for activities to carry out revitalization 
        programs for severely distressed public housing, 
        including--
                    ``(A) architectural and engineering work;
                    ``(B) redesign, rehabilitation, or 
                reconfiguration of a severely distressed public 
                housing project, including the site on which 
                the project is located;
                    ``(C) the demolition, sale, or lease of the 
                site, in whole or in part;
                    ``(D) covering the administrative costs of 
                the applicant, which may not exceed such 
                portion of the assistance provided under this 
                section as the Secretary may prescribe;
                    ``(E) payment of reasonable legal fees;
                    ``(F) providing reasonable moving expenses 
                for residents displaced as a result of the 
                revitalization of the project;
                    ``(G) economic development activities that 
                promote the economic self-sufficiency of 
                residents under the revitalization program;
                    ``(H) necessary management improvements;
                    ``(I) leveraging other resources, including 
                additional housing resources, retail supportive 
                services, jobs, and other economic development 
                uses on or near the project that will benefit 
                future residents of the site;
                    ``(J) replacement housing (including 
                appropriate homeownership downpayment 
                assistance for displaced residents or other 
                appropriate replacement homeownership 
                activities) and rental assistance under section 
                8;
                    ``(K) transitional security activities; and
                    ``(L) necessary supportive services, except 
                that not more than 15 percent of the amount of 
                any grant may be used for activities under this 
                paragraph.
            ``(2) Endowment trust for supportive services.--In 
        using grant amounts under this section made available 
        in fiscal year 2000 or thereafter for supportive 
        services under paragraph (1)(L), a public housing 
        agency may deposit such amounts in an endowment trust 
        to provide supportive services over such period of time 
        as the agency determines. Such amounts shall be 
        provided to the agency by the Secretary in a lump sum 
        when requested by the agency, shall be invested in a 
        wise and prudent manner, and shall be used (together 
        with any interest thereon earned) only for eligible 
        uses pursuant to paragraph (1)(L). A public housing 
        agency may use amounts in an endowment trust under this 
        paragraph in conjunction with other amounts donated or 
        otherwise made available to the trust for similar 
        purposes.
    ``(e) Application and Selection.--
            ``(1) Application.--An application for a grant 
        under this section shall demonstrate the 
        appropriateness of the proposal in the context of the 
        local housing market relative to other alternatives, 
        and shall include such other information and be 
        submitted at such time and in accordance with such 
        procedures, as the Secretary shall prescribe.
            ``(2) Selection criteria.--The Secretary shall 
        establish selection criteria for the award of grants 
        under this section and shall include such factors as--
                    ``(A) the relationship of the grant to the 
                public housing agency plan for the applicant 
                and how the grant will result in a revitalized 
                site that will enhance the neighborhood in 
                which the project is located and enhance 
                economic opportunities for residents;
                    ``(B) the capability and record of the 
                applicant public housing agency, or any 
                alternative management entity for the agency, 
                for managing large-scale redevelopment or 
                modernization projects, meeting construction 
                timetables, and obligating amounts in a timely 
                manner;
                    ``(C) the extent to which the applicant 
                could undertake such activities without a grant 
                under this section;
                    ``(D) the extent of involvement of 
                residents, State and local governments, private 
                service providers, financing entities, and 
                developers, in the development of a 
                revitalization program for the project;
                    ``(E) the need for affordable housing in 
                the community;
                    ``(F) the supply of other housing available 
                and affordable to families receiving tenant-
                based assistance under section 8;
                    ``(G) the amount of funds and other 
                resources to be leveraged by the grant;
                    ``(H) the extent of the need for, and the 
                potential impact of, the revitalization 
                program; and
                    ``(I) such other factors as the Secretary 
                considers appropriate.
            ``(3) Applicability of selection criteria.--The 
        Secretary may determine not to apply certain of the 
        selection criteria established pursuant to paragraph 
        (2) when awarding grants for demolition only, tenant-
        based assistance only, or other specific categories of 
        revitalization activities. This section may not be 
        construed to require any application for a grant under 
        this section to include demolition of public housing or 
        to preclude use of grant amounts for rehabilitation or 
        rebuilding of any housing on an existing site.
    ``(f) Cost Limits.--Subject to the provisions of this 
section, the Secretary--
            ``(1) shall establish cost limits on eligible 
        activities under this section sufficient to provide for 
        effective revitalization programs; and
            ``(2) may establish other cost limits on eligible 
        activities under this section.
    ``(g) Disposition and Replacement.--Any severely distressed 
public housing disposed of pursuant to a revitalization plan 
and any public housing developed in lieu of such severely 
distressed housing, shall be subject to the provisions of 
section 18. Severely distressed public housing demolished 
pursuant to a revitalization plan shall not be subject to the 
provisions of section 18.
    ``(h) Administration by Other Entities.--The Secretary may 
require a grantee under this section to make arrangements 
satisfactory to the Secretary for use of an entity other than 
the public housing agency to carry out activities assisted 
under the revitalization plan, if the Secretary determines that 
such action will help to effectuate the purposes of this 
section.
    ``(i) Withdrawal of Funding.--If a grantee under this 
section does not proceed within a reasonable timeframe, in the 
determination of the Secretary, the Secretary shall withdraw 
any grant amounts under this section that have not been 
obligated by the public housing agency. The Secretary shall 
redistribute any withdrawn amounts to one or more other 
applicants eligible for assistance under this section or to one 
or more other entities capable of proceeding expeditiously in 
the same locality in carrying out the revitalization plan of 
the original grantee.
    ``(j) Definitions.--For purposes of this section, the 
following definitions shall apply:
            ``(1) Applicant.--The term `applicant' means--
                    ``(A) any public housing agency that is not 
                designated as troubled pursuant to section 
                6(j)(2);
                    ``(B) any public housing agency for which a 
                private housing management agent has been 
                selected, or a receiver has been appointed, 
                pursuant to section 6(j)(3); and
                    (C) any public housing agency that is 
                designated as troubled pursuant to section 
                6(j)(2) and that--
                            ``(i) is so designated principally 
                        for reasons that will not affect the 
                        capacity of the agency to carry out a 
                        revitalization program;
                            ``(ii) is making substantial 
                        progress toward eliminating the 
                        deficiencies of the agency; or
                            ``(iii) is otherwise determined by 
                        the Secretary to be capable of carrying 
                        out a revitalization program.
            ``(2) Severely distressed public housing.--The term 
        `severely distressed public housing' means a public 
        housing project (or building in a project)--
                    ``(A) that--
                            ``(i) requires major redesign, 
                        reconstruction or redevelopment, or 
                        partial or total demolition, to correct 
                        serious deficiencies in the original 
                        design (including inappropriately high 
                        population density), deferred 
                        maintenance, physical deterioration or 
                        obsolescence of major systems and other 
                        deficiencies in the physical plant of 
                        the project;
                            ``(ii) is a significant 
                        contributing factor to the physical 
                        decline of and disinvestment by public 
                        and private entities in the surrounding 
                        neighborhood;
                            ``(iii)(I) is occupied 
                        predominantly by families who are very 
                        low-income families with children, are 
                        unemployed, and dependent on various 
                        forms of public assistance; or
                            ``(II) has high rates of vandalism 
                        and criminal activity (including drug-
                        related criminal activity) in 
                        comparison to other housing in the 
                        area;
                            ``(iv) cannot be revitalized 
                        through assistance under other 
                        programs, such as the program for 
                        capital and operating assistance for 
                        public housing under this Act, or the 
                        programs under sections 9 and 14 of the 
                        United States Housing Act of 1937 (as 
                        in effect before the effective date 
                        under under section 503(a) the Quality 
                        Housing and Work Responsibility Act of 
                        1998), because of cost constraints and 
                        inadequacy of available amounts; and
                            ``(v) in the case of individual 
                        buildings, is, in the Secretary's 
                        determination, sufficiently separable 
                        from the remainder of the project of 
                        which the building is part to make use 
                        of the building feasible for purposes 
                        of this section; or
                    ``(B) that was a project described in 
                subparagraph (A) that has been legally vacated 
                or demolished, but for which the Secretary has 
                not yet provided replacement housing assistance 
                (other than tenant-based assistance).
            ``(3) Supportive services.--The term `supportive 
        services' includes all activities that will promote 
        upward mobility, self-sufficiency, and improved quality 
        of life for the residents of the public housing project 
        involved, including literacy training, job training, 
        day care, transportation, and economic development 
        activities.
    ``(k) Grantee Reporting.--The Secretary shall require 
grantees of assistance under this section to report the sources 
and uses of all amounts expended for revitalization plans.
    ``(l) Annual Report.--The Secretary shall submit to the 
Congress an annual report setting forth--
            ``(1) the number, type, and cost of public housing 
        units revitalized pursuant to this section;
            ``(2) the status of projects identified as severely 
        distressed public housing;
            ``(3) the amount and type of financial assistance 
        provided under and in conjunction with this section; 
        and
            ``(4) the recommendations of the Secretary for 
        statutory and regulatory improvements to the program 
        established by this section.
    ``(m) Funding.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated for grants under this 
        section $600,000,000 for fiscal year 1999 and such sums 
        as may be necessary for each of fiscal years 2000, 
        2001, and 2002.
            ``(2) Technical assistance and program oversight.--
        Of the amount appropriated pursuant to paragraph (1) 
        for any fiscal year, the Secretary may use up to 2 
        percent for technical assistance or contract expertise. 
        Such assistance or contract expertise may be provided 
        directly or indirectly by grants, contracts, or 
        cooperative agreements, and shall include training, and 
        the cost of necessary travel for participants in such 
        training, by or to officials of the Department of 
        Housing and Urban Development, of public housing 
        agencies, and of residents.
    ``(n) Sunset.--No assistance may be provided under this 
section after September 30, 2002.''.
    (b) Applicability.--The amendment made by this section is 
made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 536. HOMEOWNERSHIP.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following new 
section:

``SEC. 32. RESIDENT HOMEOWNERSHIP PROGRAMS.

    ``(a) In General.--A public housing agency may carry out a 
homeownership program in accordance with this section and the 
public housing agency plan of the agency to make public housing 
dwelling units, public housing projects, and other housing 
projects available for purchase by low-income families for use 
only as principal residences for such families. An agency may 
transfer a unit pursuant to a homeownership program only if the 
program is authorized under this section and approved by the 
Secretary.
    ``(b) Participating Units.--A program under this section 
may cover any existing public housing dwelling units or 
projects, and may include other dwelling units and housing 
owned, assisted, or operated, or otherwise acquired for use 
under such program, by the public housing agency.
    ``(c) Eligible Purchasers.--
            ``(1) Low-income requirement.--Only low-income 
        families assisted by a public housing agency, other 
        low-income families, and entities formed to facilitate 
        such sales by purchasing units for resale to low-income 
        families shall be eligible to purchase housing under a 
        homeownership program under this section.
            ``(2) Other requirements.--A public housing agency 
        may establish other requirements or limitations for 
        families to purchase housing under a homeownership 
        program under this section, including requirements or 
        limitations regarding employment or participation in 
        employment counseling or training activities, criminal 
        activity, participation in homeownership counseling 
        programs, evidence of regular income, and other 
        requirements. In the case of purchase by an entity for 
        resale to low-income families, the entity shall sell 
        the units to low-income families within 5 years from 
        the date of its acquisition of the units. The entity 
        shall use any net proceeds from the resale and from 
        managing the units, as determined in accordance with 
        guidelines of the Secretary, for housing purposes, such 
        as funding resident organizations and reserves for 
        capital replacements.
    ``(d) Right of First Refusal.--In making any sale under 
this section, the public housing agency shall initially offer 
the public housing unit at issue to the resident or residents 
occupying that unit, if any, or to an organization serving as a 
conduit for sales to any such resident.
    ``(e) Protection of Nonpurchasing Residents.--If a public 
housing resident does not exercise the right of first refusal 
under subsection (d) with respect to the public housing unit in 
which the resident resides, the public housing agency--
            ``(1) shall notify the resident residing in the 
        unit 90 days prior to the displacement date except in 
        cases of imminent threat to health or safety, 
        consistent with any guidelines issued by the Secretary 
        governing such notifications, that--
                    ``(A) the public housing unit will be sold;
                    ``(B) the transfer of possession of the 
                unit will occur until the resident is 
                relocated; and
                    ``(C) each resident displaced by such 
                action will be offered comparable housing--
                            ``(i) that meets housing quality 
                        standards;
                            ``(ii) that is located in an area 
                        that is generally not less desirable 
                        than the location of the displaced 
                        resident's housing; and
                            ``(iii) which may include--
                                    ``(I) tenant-based 
                                assistance, except that the 
                                requirement under this 
                                subclause regarding offering of 
                                comparable housing shall be 
                                fulfilled by use of tenant-
                                based assistance only upon the 
                                relocation of such resident 
                                into such housing;
                                    ``(II) project-based 
                                assistance; or
                                    ``(III) occupancy in a unit 
                                owned, operated, or assisted by 
                                the public housing agency at a 
                                rental rate paid by the 
                                resident that is comparable to 
                                the rental rate applicable to 
                                the unit from which the 
                                resident is vacated;
            ``(2) shall provide for the payment of the actual 
        and reasonable relocation expenses of the resident to 
        be displaced;
            ``(3) shall ensure that the displaced resident is 
        offered comparable housing in accordance with the 
        notice under paragraph (1);
            ``(4) shall provide any necessary counseling for 
        the displaced resident; and
            ``(5) shall not transfer possession of the unit 
        until the resident is relocated.
    ``(f) Financing and Assistance.--A homeownership program 
under this section may provide financing for acquisition of 
housing by families purchasing under the program, or for 
acquisition of housing by the public housing agency for sale 
under the program, in any manner considered appropriate by the 
agency (including sale to a resident management corporation).
    ``(g) Downpayment Requirement.--
            ``(1) In general.--Each family purchasing housing 
        under a homeownership program under this section shall 
        be required to provide from its own resources a 
        downpayment in connection with any loan for acquisition 
        of the housing, in an amount determined by the public 
        housing agency. Except as provided in paragraph (2), 
        the agency shall permit the family to use grant 
        amounts, gifts from relatives, contributions from 
        private sources, and similar amounts as downpayment 
        amounts in such purchase.
            ``(2) Direct family contribution.--In purchasing 
        housing pursuant to this section, each family shall 
        contribute an amount of the downpayment, from resources 
        of the family other than grants, gifts, contributions, 
        or other similar amounts referred to in paragraph (1), 
        that is not less than 1 percent of the purchase price.
    ``(h) Ownership Interests.--A homeownership program under 
this section may provide for sale to the purchasing family of 
any ownership interest that the public housing agency considers 
appropriate under the program, including ownership in fee 
simple, a condominium interest, an interest in a limited 
dividend cooperative, a shared appreciation interest with a 
public housing agency providing financing.
    ``(i) Resale.--
            ``(1) Authority and limitation.--A homeownership 
        program under this section shall permit the resale of a 
        dwelling unit purchased under the program by an 
        eligible family, but shall provide such limitations on 
        resale as the agency considers appropriate (whether the 
        family purchases directly from the agency or from 
        another entity) for the agency to recapture--
                    ``(A) some or all of the economic gain 
                derived from any such resale occurring during 
                the 5-year period beginning upon purchase of 
                the dwelling unit by the eligible family; and
                    ``(B) after the expiration of such 5-year 
                period, only such amounts as are equivalent to 
                the assistance provided under this section by 
                the agency to the purchaser.
            ``(2) Considerations.--The limitations referred to 
        in paragraph (1)(A) may provide for consideration of 
        the aggregate amount of assistance provided under the 
        program to the family, the contribution to equity 
        provided by the purchasing eligible family, the period 
        of time elapsed between purchase under the 
        homeownership program and resale, the reason for 
        resale, any improvements to the property made by the 
        eligible family, any appreciation in the value of the 
        property, and any other factors that the agency 
        considers appropriate.
    ``(j) Net Proceeds.--The net proceeds of any sales under a 
homeownership program under this section remaining after 
payment of all costs of the sale shall be used for purposes 
relating to low-income housing and in accordance with the 
public housing agency plan of the agency carrying out the 
program.
    ``(k) Homeownership Assistance.--From amounts distributed 
to a public housing agency under the Capital Fund under section 
9(d), or from other income earned by the public housing agency, 
the public housing agency may provide assistance to public 
housing residents to facilitate the ability of those residents 
to purchase a principal residence, including a residence other 
than a residence located in a public housing project.
    ``(l) Inapplicability of Disposition Requirements.--The 
provisions of section 18 shall not apply to disposition of 
public housing dwelling units under a homeownership program 
under this section.''.

SEC. 537. REQUIRED CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-
                    BASED ASSISTANCE.

    (a) In General.--Title I of the United States Housing Act 
of 1937 (42 U.S.C. 1437 et seq.), as amended by the preceding 
provisions of this Act, is further amended by adding at the end 
the following new section:

``SEC. 33. REQUIRED CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-
                    BASED ASSISTANCE.

    ``(a) Identification of Units.--Each public housing agency 
shall identify all public housing projects of the public 
housing agency that meet all of the following requirements:
            ``(1) The project is on the same or contiguous 
        sites.
            ``(2) The project is determined by the public 
        housing agency to be distressed, which determination 
        shall be made in accordance with guidelines established 
        by the Secretary, which guidelines shall take into 
        account the criteria established in the Final Report of 
        the National Commission on Severely Distressed Public 
        Housing (August 1992).
            ``(3) The project--
                    ``(A) is identified as distressed housing 
                under paragraph (2) for which the public 
                housing agency cannot assure the long-term 
                viability as public housing through reasonable 
                modernization expenses, density reduction, 
                achievement of a broader range of family 
                income, or other measures; or
                    ``(B) has an estimated cost, during the 
                remaining useful life of the project, of 
                continued operation and modernization as public 
                housing that exceeds the estimated cost, during 
                the remaining useful life of the project, of 
                providing tenant-based assistance under section 
                8 for all families in occupancy, based on 
                appropriate indicators of cost (such as the 
                percentage of total development costs required 
                for modernization).
    ``(b) Consultation.--Each public housing agency shall 
consult with the appropriate public housing residents and the 
appropriate unit of general local government in identifying any 
public housing projects under subsection (a).
    ``(c) Plan for Removal of Units From Inventories of 
PHA's.--
            ``(1) Development.--Each public housing agency 
        shall develop and carry out a 5-year plan in 
        conjunction with the Secretary for the removal of 
        public housing units identified under subsection (a) 
        from the inventory of the public housing agency and the 
        annual contributions contract.
            ``(2) Approval.--Each plan required under paragraph 
        (1) shall--
                    ``(A) be included as part of the public 
                housing agency plan;
                    ``(B) be certified by the relevant local 
                official to be in accordance with the 
                comprehensive housing affordability strategy 
                under title I of the Housing and Community 
                Development Act of 1992; and
                    ``(C) include a description of any 
                disposition and demolition plan for the public 
                housing units.
            ``(3) Extensions.--The Secretary may extend the 5-
        year deadline described in paragraph (1) by not more 
        than an additional 5 years if the Secretary makes a 
        determination that the deadline is impracticable.
            ``(4) Review by secretary.--
                    ``(A) Failure to identify projects.--If the 
                Secretary determines, based on a plan submitted 
                under this subsection, that a public housing 
                agency has failed to identify 1 or more public 
                housing projects that the Secretary determines 
                should have been identified under subsection 
                (a), the Secretary may designate the public 
                housing projects to be removed from the 
                inventory of the public housing agency pursuant 
                to this section.
                    ``(B) Erroneous identification of 
                projects.--If the Secretary determines, based 
                on a plan submitted under this subsection, that 
                a public housing agency has identified 1 or 
                more public housing projects that should not 
                have been identified pursuant to subsection 
                (a), the Secretary shall--
                            ``(i) require the public housing 
                        agency to revise the plan of the public 
                        housing agency under this subsection; 
                        and
                            ``(ii) prohibit the removal of any 
                        such public housing project from the 
                        inventory of the public housing agency 
                        under this section.
    ``(d) Conversion to Tenant-Based Assistance.--
            ``(1) In general.--To the extent approved in 
        advance in appropriations Acts, the Secretary shall 
        make budget authority available to a public housing 
        agency to provide assistance under this Act to families 
        residing in any public housing project that, pursuant 
        to this section, is removed from the inventory of the 
        agency and the annual contributions contract of the 
        agency.
            ``(2) Conversion requirements.--Each agency 
        carrying out a plan under subsection (c) for removal of 
        public housing dwelling units from the inventory of the 
        agency shall--
                    ``(A) notify each family residing in a 
                public housing project to be converted under 
                the plan 90 days prior to the displacement 
                date, except in cases of imminent threat to 
                health or safety, consistent with any 
                guidelines issued by the Secretary governing 
                such notifications, that--
                            ``(i) the public housing project 
                        will be removed from the inventory of 
                        the public housing agency; and
                            ``(ii) each family displaced by 
                        such action will be offered comparable 
                        housing--
                                    ``(I) that meets housing 
                                quality standards; and
                                    ``(II) which may include--
                                            ``(aa) tenant-based 
                                        assistance, except that 
                                        the requirement under 
                                        this clause regarding 
                                        offering of comparable 
                                        housing shall be 
                                        fulfilled by use of 
                                        tenant-based assistance 
                                        only upon the 
                                        relocation of such 
                                        family into such 
                                        housing;
                                            ``(bb) project-
                                        based assistance; or
                                            ``(cc) occupancy in 
                                        a unit operated or 
                                        assisted by the public 
                                        housing agency at a 
                                        rental rate paid by the 
                                        family that is 
                                        comparable to the 
                                        rental rate applicable 
                                        to the unit from which 
                                        the family is vacated.
                    ``(B) provide any necessary counseling for 
                families displaced by such action;
                    ``(C) ensure that, if the project (or 
                portion) converted is used as housing after 
                such conversion, each resident may choose to 
                remain in their dwelling unit in the project 
                and use the tenant-based assistance toward rent 
                for that unit;
                    ``(D) ensure that each displaced resident 
                is offered comparable housing in accordance 
                with the notice under subparagraph (A); and
                    ``(E) provide any actual and reasonable 
                relocation expenses for families displaced by 
                such action.
    ``(e) Cessation of Unnecessary Spending.--Notwithstanding 
any other provision of law, if, in the determination of the 
Secretary, a project or projects of a public housing agency 
meet or are likely to meet the criteria set forth in subsection 
(a), the Secretary may direct the agency to cease additional 
spending in connection with such project or projects until the 
Secretary determines or approves an appropriate course of 
action with respect to such project or projects under this 
section, except to the extent that failure to expend such 
amounts would endanger the health or safety of residents in the 
project or projects.
    ``(f) Use of Budget Authority.--Notwithstanding any other 
provision of law, if a project or projects are identified 
pursuant to subsection (a), the Secretary may authorize or 
direct the transfer, to the tenant-based assistance program of 
such agency or to appropriate site revitalization or other 
capital improvements approved by the Secretary, of--
            ``(1) in the case of an agency receiving assistance 
        under the comprehensive improvement assistance program, 
        any amounts obligated by the Secretary for the 
        modernization of such project or projects pursuant to 
        section 14 of the United States Housing Act of 1937 (as 
        in effect immediately before the effective date under 
        section 503(a) of the Quality Housing and Work 
        Responsibility Act of 1998);
            ``(2) in the case of an agency receiving public 
        housing modernization assistance by formula pursuant to 
        such section 14, any amounts provided to the agency 
        which are attributable pursuant to the formula for 
        allocating such assistance to such project or projects;
            ``(3) in the case of an agency receiving assistance 
        for the major reconstruction of obsolete projects, any 
        amounts obligated by the Secretary for the major 
        reconstruction of such project or projects pursuant to 
        section 5(j)(2) of the United States Housing Act of 
        1937, as in effect immediately before the effective 
        date under section 503(a) of the Quality Housing and 
        Work Responsibility Act of 1998; and
            ``(4) in the case of an agency receiving assistance 
        pursuant to the formulas under section 9, any amounts 
        provided to the agency which are attributable pursuant 
        to the formulas for allocating such assistance to such 
        project or projects.
    ``(g) Removal by Secretary.--The Secretary shall take 
appropriate actions to ensure removal of any public housing 
project identified under subsection (a) from the inventory of a 
public housing agency, if the public housing agency fails to 
adequately develop a plan under subsection (c) with respect to 
that project, or fails to adequately implement such plan in 
accordance with the terms of the plan.
    ``(h) Administration.--
            ``(1) In general.--The Secretary may require a 
        public housing agency to provide to the Secretary or to 
        public housing residents such information as the 
        Secretary considers to be necessary for the 
        administration of this section.
            ``(2) Applicability of section 18.--Section 18 
        shall not apply to the demolition of public housing 
        projects removed from the inventory of the public 
        housing agency under this section.''.
    (b) Conforming Amendment.--Section 202 of the Departments 
of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437l 
note) is repealed.
    (c) Transition.--
            (1) Use of amounts.--Any amounts made available to 
        a public housing agency to carry out section 202 of the 
        Departments of Veterans Affairs and Housing and Urban 
        Development, and Independent Agencies Appropriations 
        Act, 1996 (enacted as section 101(e) of the Omnibus 
        Consolidated Rescissions and Appropriations Act of 1996 
        (Public Law 104-134; 110 Stat. 1321-279)) may be used, 
        to the extent or in such amounts as are or have been 
        provided in advance in appropriation Acts, to carry out 
        section 33 of the United States Housing Act of 1937 (as 
        added by subsection (a) of this section).
            (2) Savings provision.--Notwithstanding the 
        amendments made by this section, section 202 of the 
        Departments of Veterans Affairs and Housing and Urban 
        Development, and Independent Agencies Appropriations 
        Act, 1996 (42 U.S.C. 14371 note) and any regulations 
        implementing such section, as in effect immediately 
        before the enactment of this Act, shall continue to 
        apply to public housing developments identified by the 
        Secretary or a public housing agency for conversion 
        pursuant to that section or for assessment of whether 
        such conversion is required prior to enactment of this 
        Act.

SEC. 538. LINKING SERVICES TO PUBLIC HOUSING RESIDENTS.

    (a) In General.--Title I of the United States Housing Act 
of 1937 (42 U.S.C. 1437 et seq.), as amended by the preceding 
provisions of this Act, is further amended by adding at the end 
the following new section:

``SEC. 34. SERVICES FOR PUBLIC HOUSING RESIDENTS.

    ``(a) In General.--To the extent that amounts are provided 
in advance in appropriations Acts, the Secretary may make 
grants to public housing agencies on behalf of public housing 
residents, or directly to resident management corporations, 
resident councils, or resident organizations (including 
nonprofit entities supported by residents), for the purposes of 
providing a program of supportive services and resident 
empowerment activities to provide supportive services to public 
housing residents or assist such residents in becoming 
economically self-sufficient.
    ``(b) Eligible Activities.--Grantees under this section may 
use such amounts only for activities on or near the property of 
the public housing agency or public housing project that are 
designed to promote the self-sufficiency of public housing 
residents or provide supportive services for such residents, 
including activities relating to--
            ``(1) physical improvements to a public housing 
        project in order to provide space for supportive 
        services for residents;
            ``(2) the provision of service coordinators or a 
        congregate housing services program for elderly 
        individuals, elderly disabled individuals, nonelderly 
        disabled individuals, or temporarily disabled 
        individuals;
            ``(3) the provision of services related to work 
        readiness, including education, job training and 
        counseling, job search skills, business development 
        training and planning, tutoring, mentoring, adult 
        literacy, computer access, personal and family 
        counseling, health screening, work readiness health 
        services, transportation, and child care;
            ``(4) economic and job development, including 
        employer linkages and job placement, and the start-up 
        of resident microenterprises, community credit unions, 
        and revolving loan funds, including the licensing, 
        bonding, and insurance needed to operate such 
        enterprises;
            ``(5) resident management activities and resident 
        participation activities; and
            ``(6) other activities designed to improve the 
        economic self-sufficiency of residents.
    ``(c) Funding Distribution.--
            ``(1) In general.--Except for amounts provided 
        under subsection (d), the Secretary may distribute 
        amounts made available under this section on the basis 
        of a competition or a formula, as appropriate.
            ``(2) Factors for distribution.--Factors for 
        distribution under paragraph (1) shall include--
                    ``(A) the demonstrated capacity of the 
                applicant to carry out a program of supportive 
                services or resident empowerment activities;
                    ``(B) the ability of the applicant to 
                leverage additional resources for the provision 
                of services; and
                    ``(C) the extent to which the grant will 
                result in a high quality program of supportive 
                services or resident empowerment activities.
    ``(d) Matching Requirement.--The Secretary may not make any 
grant under this section to any applicant unless the applicant 
supplements amounts made available under this section with 
funds from sources other than this section in an amount equal 
to not less than 25 percent of the grant amount. Such 
supplemental amounts may include--
            ``(1) funds from other Federal sources;
            ``(2) funds from any State or local government 
        sources;
            ``(3) funds from private contributions; and
            ``(4) the value of any in-kind services or 
        administrative costs provided to the applicant.
    ``(e) Funding for Resident Organizations.--To the extent 
that there are a sufficient number of qualified applications 
for assistance under this section, not less than 25 percent of 
any amounts appropriated to carry out this section shall be 
provided directly to resident councils, resident organizations, 
and resident management corporations. In any case in which a 
resident council, resident organization, or resident management 
corporation lacks adequate expertise, the Secretary may require 
the council, organization, or corporation to utilize other 
qualified organizations as contract administrators with respect 
to financial assistance provided under this section.''.
    (b) Assessment and Report by Secretary.--Not later than 3 
years after the date of the enactment of the Quality Housing 
and Work Responsibility Act of 1998, the Secretary of Housing 
and Urban Development shall--
            (1) conduct an evaluation and assessment of grants 
        carried out by resident organizations, and particularly 
        of the effect of the grants on living conditions in 
        public housing; and
            (2) submit to the Congress a report setting forth 
        the findings of the Secretary as a result of the 
        evaluation and assessment and including any 
        recommendations the Secretary determines to be 
        appropriate.
    This subsection shall take effect on the date of the 
enactment of this Act.

SEC. 539. MIXED-FINANCE PUBLIC HOUSING.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following new 
section:

``SEC. 35. MIXED FINANCE PUBLIC HOUSING.

    ``(a) Authority.--A public housing agency may own, operate, 
assist, or otherwise participate in 1 or more mixed-finance 
projects in accordance with this section.
    ``(b) Assistance.--
            ``(1) Forms.--A public housing agency may provide 
        to a mixed-finance project assistance from the 
        Operating Fund under section 9, assistance from the 
        Capital Fund under such section, or both forms of 
        assistance. A public housing agency may, in accordance 
        with regulations established by the Secretary, provide 
        capital assistance to a mixed-finance project in the 
        form of a grant, loan, guarantee, or other form of 
        investment in the project, which may involve drawdown 
        of funds on a schedule commensurate with construction 
        draws for deposit into an interest-bearing escrow 
        account to serve as collateral or credit enhancement 
        for bonds issued by a public agency, or for other forms 
        of public or private borrowings, for the construction 
        or rehabilitation of the development.
            ``(2) Use.--To the extent deemed appropriate by the 
        Secretary, assistance used in connection with the costs 
        associated with the operation and management of mixed-
        finance projects may be used for funding of an 
        operating reserve to ensure affordability for low-
        income and very low-income families in lieu of the 
        availability of operating funds for public housing 
        units in a mixed-finance project.
    ``(c) Compliance With Public Housing Requirements.--The 
units assisted with capital or operating assistance in a mixed-
finance project shall be developed, operated, and maintained in 
accordance with the requirements of this Act relating to public 
housing during the period required by under this Act, unless 
otherwise specified in this section. For purposes of this Act, 
any reference to public housing owned or operated by a public 
housing agency shall include dwelling units in a mixed finance 
project that are assisted by the agency with capital or 
operating assistance.
    ``(d) Mixed-Finance Projects.--
            ``(1) In general.--For purposes of this section, 
        the term `mixed-finance project' means a project that 
        meets the requirements of paragraph (2) and is 
        financially assisted by private resources, which may 
        include low-income housing tax credits, in addition to 
        amounts provided under this Act.
            ``(2) Types of projects.--The term includes a 
        project that is developed--
                    ``(A) by a public housing agency or by an 
                entity affiliated with a public housing agency;
                    ``(B) by a partnership, a limited liability 
                company, or other entity in which the public 
                housing agency (or an entity affiliated with a 
                public housing agency) is a general partner, 
                managing member, or otherwise participates in 
                the activities of that entity;
                    ``(C) by any entity that grants to the 
                public housing agency the right of first 
                refusal and first option to purchase, after the 
                close of the compliance period, of the 
                qualified low-income building in which the 
                public housing units exist in accordance with 
                section 42(i)(7) of the Internal Revenue Code 
                of 1986; or
                    ``(D) in accordance with such other terms 
                and conditions as the Secretary may prescribe 
                by regulation.
    ``(e) Structure of Projects.--Each mixed-finance project 
shall be developed--
            ``(1) in a manner that ensures that public housing 
        units are made available in the project, by regulatory 
        and operating agreement, master contract, individual 
        lease, condominium or cooperative agreement, or equity 
        interest;
            ``(2) in a manner that ensures that the number of 
        public housing units bears approximately the same 
        proportion to the total number of units in the mixed-
        finance project as the value of the total financial 
        commitment provided by the public housing agency bears 
        to the value of the total financial commitment in the 
        project, or shall not be less than the number of units 
        that could have been developed under the conventional 
        public housing program with the assistance, or as may 
        otherwise be approved by the Secretary; and
            ``(3) in accordance with such other requirements as 
        the Secretary may prescribe by regulation.
    ``(f) Taxation.--
            ``(1) In general.--A public housing agency may 
        elect to exempt all public housing units in a mixed-
        finance project--
                    ``(A) from the provisions of section 6(d), 
                and instead subject such units to local real 
                estate taxes; and
                    ``(B) from the finding of need and 
                cooperative agreement provisions under section 
                5(e)(1)(ii) and 5(e)(2), but only if the 
                development of the units is not inconsistent 
                with the jurisdiction's comprehensive housing 
                affordability strategy.
            ``(2) Low-income housing tax credit.--With respect 
        to any unit in a mixed-finance project that is assisted 
        pursuant to the low-income housing tax credit under 
        section 42 of the Internal Revenue Code of 1986, the 
        rents charged to the residents may be set at levels not 
        to exceed the amounts allowable under that section, 
        provided that such levels for public housing residents 
        do not exceed the amounts allowable under section 3.
    ``(g) Use of Savings.--Notwithstanding any other provision 
of this Act, to the extent deemed appropriate by the Secretary, 
to facilitate the establishment of socioeconomically mixed 
communities, a public housing agency that uses assistance from 
the Capital Fund for a mixed-finance project, to the extent 
that income from such a project reduces the amount of 
assistance used for operating or other costs relating to public 
housing, may use such resulting savings to rent privately 
developed dwelling units in the neighborhood of the mixed-
finance project. Such units shall be made available for 
occupancy only by low-income families eligible for residency in 
public housing.
    ``(h) Effect of Certain Contract Terms.--If an entity that 
owns or operates a mixed-finance project, that includes a 
significant number of units other than public housing units 
enters into a contract with a public housing agency, the terms 
of which obligate the entity to operate and maintain a 
specified number of units in the project as public housing 
units in accordance with the requirements of this Act for the 
period required by law, such contractual terms may provide 
that, if, as a result of a reduction in appropriations under 
section 9 or any other change in applicable law, the public 
housing agency is unable to fulfill its contractual obligations 
with respect to those public housing units, that entity may 
deviate, under procedures and requirements developed through 
regulations by the Secretary, from otherwise applicable 
restrictions under this Act regarding rents, income 
eligibility, and other areas of public housing management with 
respect to a portion or all of those public housing units, to 
the extent necessary to preserve the viability of those units 
while maintaining the low-income character of the units to the 
maximum extent practicable.''.
    (b) Regulations.--The Secretary shall issue such 
regulations as may be necessary to promote the development of 
mixed-finance projects, as that term is defined in section 3(b) 
of the United States Housing Act of 1937 (as amended by this 
Act).

       Subtitle C--Section 8 Rental and Homeownership Assistance

SEC. 545. MERGER OF CERTIFICATE AND VOUCHER PROGRAMS.

    (a) In General.--Section 8(o) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)) is amended to read as follows:
    ``(o) Voucher Program.--
            ``(1) Authority.--
                    ``(A) In general.--The Secretary may 
                provide assistance to public housing agencies 
                for tenant-based assistance using a payment 
                standard established in accordance with 
                subparagraph (B). The payment standard shall be 
                used to determine the monthly assistance that 
                may be paid for any family, as provided in 
                paragraph (2).
                    ``(B) Establishment of payment standard.--
                Except as provided under subparagraph (D), the 
                payment standard for each size of dwelling unit 
                in a market area shall not exceed 110 percent 
                of the fair market rental established under 
                subsection (c) for the same size of dwelling 
                unit in the same market area and shall be not 
                less than 90 percent of that fair market 
                rental.
                    ``(C) Set-aside.--The Secretary may set 
                aside not more than 5 percent of the budget 
                authority made available for assistance under 
                this subsection as an adjustment pool. The 
                Secretary shall use amounts in the adjustment 
                pool to make adjusted payments to public 
                housing agencies under subparagraph (A), to 
                ensure continued affordability, if the 
                Secretary determines that additional assistance 
                for such purpose is necessary, based on 
                documentation submitted by a public housing 
                agency.
                    ``(D) Approval.--The Secretary may require 
                a public housing agency to submit the payment 
                standard of the public housing agency to the 
                Secretary for approval, if the payment standard 
                is less than 90 percent of the fair market 
                rental or exceeds 110 percent of the fair 
                market rental.
                    ``(E) Review.--The Secretary--
                            ``(i) shall monitor rent burdens 
                        and review any payment standard that 
                        results in a significant percentage of 
                        the families occupying units of any 
                        size paying more than 30 percent of 
                        adjusted income for rent; and
                            ``(ii) may require a public housing 
                        agency to modify the payment standard 
                        of the public housing agency based on 
                        the results of that review.
            ``(2) Amount of monthly assistance payment.--
        Subject to the requirement under section 3(a)(3) 
        (relating to minimum rental amount), the monthly 
        assistance payment for a family receiving assistance 
        under this subsection shall be determined as follows:
                    ``(A) Tenant-based assistance; rent not 
                exceeding payment standard.--For a family 
                receiving tenant-based assistance, if the rent 
                for the family (including the amount allowed 
                for tenant-paid utilities) does not exceed the 
                applicable payment standard established under 
                paragraph (1), the monthly assistance payment 
                for the family shall be equal to the amount by 
                which the rent (including the amount allowed 
                for tenant-paid utilities) exceeds the greatest 
                of the following amounts, rounded to the 
                nearest dollar:
                            ``(i) 30 percent of the monthly 
                        adjusted income of the family.
                            ``(ii) 10 percent of the monthly 
                        income of the family.
                            ``(iii) If the family is receiving 
                        payments for welfare assistance from a 
                        public agency and a part of those 
                        payments, adjusted in accordance with 
                        the actual housing costs of the family, 
                        is specifically designated by that 
                        agency to meet the housing costs of the 
                        family, the portion of those payments 
                        that is so designated.
                    ``(B) Tenant-based assistance; rent 
                exceeding payment standard.--For a family 
                receiving tenant-based assistance, if the rent 
                for the family (including the amount allowed 
                for tenant-paid utilities) exceeds the 
                applicable payment standard established under 
                paragraph (1), the monthly assistance payment 
                for the family shall be equal to the amount by 
                which the applicable payment standard exceeds 
                the greatest of amounts under clauses (i), 
                (ii), and (iii) of subparagraph (A).
                    ``(C) Families receiving project-based 
                assistance.--For a family receiving project-
                based assistance, the rent that the family is 
                required to pay shall be determined in 
                accordance with section 3(a)(1), and the amount 
                of the housing assistance payment shall be 
                determined in accordance with subsection (c)(3) 
                of this section.
            ``(3) 40 percent limit.--At the time a family 
        initially receives tenant-based assistance under this 
        section with respect to any dwelling unit, the total 
        amount that a family may be required to pay for rent 
        may not exceed 40 percent of the monthly adjusted 
        income of the family.
            ``(4) Eligible families.--To be eligible to receive 
        assistance under this subsection, a family shall, at 
        the time a family initially receives assistance under 
        this subsection, be a low-income family that is--
                    ``(A) a very low-income family;
                    ``(B) a family previously assisted under 
                this title;
                    ``(C) a low-income family that meets 
                eligibility criteria specified by the public 
                housing agency;
                    ``(D) a family that qualifies to receive a 
                voucher in connection with a homeownership 
                program approved under title IV of the 
                Cranston-Gonzalez National Affordable Housing 
                Act; or
                    ``(E) a family that qualifies to receive a 
                voucher under section 223 or 226 of the Low-
                Income Housing Preservation and Resident 
                Homeownership Act of 1990.
            ``(5) Annual review of family income.--
                    ``(A) In general.--Reviews of family 
                incomes for purposes of this section shall be 
                subject to the provisions of section 904 of the 
                Stewart B. McKinney Homeless Assistance 
                Amendments Act of 1988 and shall be conducted 
                upon the initial provision of housing 
                assistance for the family and thereafter not 
                less than annually.
                    ``(B) Procedures.--Each public housing 
                agency administering assistance under this 
                subsection shall establish procedures that are 
                appropriate and necessary to ensure that income 
                data provided to the agency and owners by 
                families applying for or receiving assistance 
                from the agency is complete and accurate. Each 
                public housing agency shall, not less 
                frequently than annually, conduct a review of 
                the family income of each family receiving 
                assistance under this subsection.
            ``(6) Selection of families and disapproval of 
        owners.--
                    ``(A) Preferences.--
                            ``(i) Authority to establish.--Each 
                        public housing agency may establish a 
                        system for making tenant-based 
                        assistance under this subsection 
                        available on behalf of eligible 
                        families that provides preference for 
                        such assistance to eligible families 
                        having certain characteristics, which 
                        may include a preference for families 
                        residing in public housing who are 
                        victims of a crime of violence (as such 
                        term is defined in section 16 of title 
                        18, United States Code) that has been 
                        reported to an appropriate law 
                        enforcement agency.
                            ``(ii) Content.--Each system of 
                        preferences established pursuant to 
                        this subparagraph shall be based upon 
                        local housing needs and priorities, as 
                        determined by the public housing agency 
                        using generally accepted data sources, 
                        including any information obtained 
                        pursuant to an opportunity for public 
                        comment as provided under section 5A(f) 
                        and under the requirements applicable 
                        to the comprehensive housing 
                        affordability strategy for the relevant 
                        jurisdiction.
                    ``(B) Selection of tenants.--Each housing 
                assistance payment contract entered into by the 
                public housing agency and the owner of a 
                dwelling unit) shall provide that the screening 
                and selection of families for those units shall 
                be the function of the owner. In addition, the 
                public housing agency may elect to screen 
                applicants for the program in accordance with 
                such requirements as the Secretary may 
                establish.
                    ``(C) PHA disapproval of owners.--In 
                addition to other grounds authorized by the 
                Secretary, a public housing agency may elect 
                not to enter into a housing assistance payments 
                contract under this subsection with an owner 
                who refuses, or has a history of refusing, to 
                take action to terminate tenancy for activity 
                engaged in by the tenant, any member of the 
                tenant's household, any guest, or any other 
                personunder the control of any member of the 
household that--
                            ``(i) threatens the health or 
                        safety of, or right to peaceful 
                        enjoyment of the premises by, other 
                        tenants or employees of the public 
                        housing agency, owner, or other manager 
                        of the housing;
                            ``(ii) threatens the health or 
                        safety of, or right to peaceful 
                        enjoyment of the residences by, persons 
                        residing in the immediate vicinity of 
                        the premises; or
                            ``(iii) is drug-related or violent 
                        criminal activity.
            ``(7) Leases and tenancy.--Each housing assistance 
        payment contract entered into by the public housing 
        agency and the owner of a dwelling unit--
                    ``(A) shall provide that the lease between 
                the tenant and the owner shall be for a term of 
                not less than 1 year, except that the public 
                housing agency may approve a shorter term for 
                an initial lease between the tenant and the 
                dwelling unit owner if the public housing 
                agency determines that such shorter term would 
                improve housing opportunities for the tenant 
                and if such shorter term is considered to be a 
                prevailing local market practice;
                    ``(B) shall provide that the dwelling unit 
                owner shall offer leases to tenants assisted 
                under this subsection that--
                            ``(i) are in a standard form used 
                        in the locality by the dwelling unit 
                        owner; and
                            ``(ii) contain terms and conditions 
                        that--
                                    ``(I) are consistent with 
                                State and local law; and
                                    ``(II) apply generally to 
                                tenants in the property who are 
                                not assisted under this 
                                section;
                    ``(C) shall provide that during the term of 
                the lease, 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;
                    ``(D) shall provide that during the term of 
                the lease, 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 violent or 
                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;
                    ``(E) shall provide that any termination of 
                tenancy under this subsection shall be preceded 
                by the provision of written notice by the owner 
                to the tenant specifying the grounds for that 
                action, and any relief shall be consistent with 
                applicable State and local law; and
                    ``(F) may include any addenda required by 
                the Secretary to set forth the provisions of 
                this subsection.
            ``(8) Inspection of units by pha's.--
                    ``(A) In general.--Except as provided in 
                paragraph (11), for each dwelling unit for 
                which a housing assistance payment contract is 
                established under this subsection, the public 
                housing agency shall inspect the unit before 
                any assistance payment is made to determine 
                whether the dwelling unit meets the housing 
                quality standards under subparagraph (B).
                    ``(B) Housing quality standards.--The 
                housing quality standards under this 
                subparagraph are standards for safe and 
                habitable housing established--
                            ``(i) by the Secretary for purposes 
                        of this subsection; or
                            ``(ii) by local housing codes or by 
                        codes adopted by public housing 
                        agencies that--
                                    ``(I) meet or exceed 
                                housing quality standards, 
                                except that the Secretary may 
                                waive the requirement under 
                                this subclause to significantly 
                                increase access to affordable 
                                housing and to expand housing 
                                opportunities for families 
                                assisted under this subsection, 
                                except where such waiver could 
                                adversely affect the health or 
                                safety of families assisted 
                                under this subsection; and
                                    ``(II) do not severely 
                                restrict housing choice
                    ``(C) Inspection.--The determination 
                required under subparagraph (A) shall be made 
                by the public housing agency (or other entity, 
                as provided in paragraph (11)) pursuant to an 
                inspection of the dwelling unit conducted 
                before any assistance payment is made for the 
                unit. Inspections of dwelling units under this 
                subparagraph shall be made before the 
                expiration of the 15-day period beginning upon 
                a request by the resident or landlord to the 
                public housing agency or, in the case of any 
                public housing agency that provides assistance 
                under this subsection on behalf of more than 
                1250 families, before the expiration of a 
                reasonable period beginning upon such request. 
                The performance of the agency in meeting the 
                15-day inspection deadline shall be taken into 
                consideration in assessing the performance of 
                the agency.
                    ``(D) Annual inspections.--Each public 
                housing agency providing assistance under this 
                subsection (or other entity, as provided in 
                paragraph (11)) shall make an annual inspection 
                of each assisted dwelling unit during the term 
                of the housing assistance payments contract for 
                the unit to determine whether the unit is 
                maintained in accordance with the requirements 
                under subparagraph (A). The agency (or other 
                entity) shall retain the records of the 
                inspection for a reasonable time and shall make 
                the records available upon request to the 
                Secretary, the Inspector General for the 
                Department of Housing and Urban Development, 
                and any auditor conducting an audit under 
                section 5(h).
                    ``(E) Inspection guidelines.--The Secretary 
                shall establish procedural guidelines and 
                performance standards to facilitate inspections 
                of dwelling units and conform such inspections 
                with practices utilized in the private housing 
                market. Such guidelines and standards shall 
                take into consideration variations in local 
                laws and practices of public housing agencies 
                and shall provide flexibility to authorities 
                appropriate to facilitate efficient provision 
                of assistance under this subsection.
            ``(9) Vacated units.--If an assisted family vacates 
        a dwelling unit for which rental assistance is provided 
        under a housing assistance payment contract before the 
        expiration of the term of the lease for the unit, 
        rental assistance pursuant to such contract may not be 
        provided for the unit after the month during which the 
        unit was vacated.
            ``(10) Rent.--
                    ``(A) Reasonableness.--The rent for 
                dwelling units for which a housing assistance 
                payment contract is established under this 
                subsection shall be reasonable in comparison 
                with rents charged for comparable dwelling 
                units in the private, unassisted local market.
                    ``(B) Negotiations.--A public housing 
                agency (or other entity, as provided in 
                paragraph (11)) shall, at the request of a 
                family receiving tenant-based assistance under 
                this subsection, assist that family in 
                negotiating a reasonable rent with a dwelling 
                unit owner. A public housing agency (or such 
                other entity) shall review the rent for a unit 
                under consideration by the family (and all rent 
                increases for units under lease by the family) 
                to determine whether the rent (or rent 
                increase) requested by the owner is reasonable. 
                If a public housing agency (or other such 
                entity) determines that the rent (or rent 
                increase) for a dwelling unit is not 
                reasonable, the public housing agency (or other 
                such entity) shall not make housing 
assistancepayments to the owner under this subsection with respect to 
that unit.
                    ``(C) Units exempt from local rent 
                control.--If a dwelling unit for which a 
                housing assistance payment contract is 
                established under this subsection is exempt 
                from local rent control provisions during the 
                term of that contract, the rent for that unit 
                shall be reasonable in comparison with other 
                units in the market area that are exempt from 
                local rent control provisions.
                    ``(D) Timely payments.--Each public housing 
                agency shall make timely payment of any amounts 
                due to a dwelling unit owner under this 
                subsection. The housing assistance payment 
                contract between the owner and the public 
                housing agency may provide for penalties for 
                the late payment of amounts due under the 
                contract, which shall be imposed on the public 
                housing agency in accordance with generally 
                accepted practices in the local housing market.
                    ``(E) Penalties.--Unless otherwise 
                authorized by the Secretary, each public 
                housing agency shall pay any penalties from 
                administrative fees collected by the public 
                housing agency, except that no penalty shall be 
                imposed if the late payment is due to factors 
                that the Secretary determines are beyond the 
                control of the public housing agency.
            ``(11) Leasing of units owned by pha.--If an 
        eligible family assisted under this subsection leases a 
        dwelling unit (other than a public housing dwelling 
        unit) that is owned by a public housing agency 
        administering assistance under this subsection, the 
        Secretary shall require the unit of general local 
        government or another entity approved by the Secretary, 
        to make inspections required under paragraph (8) and 
        rent determinations required under paragraph (10). The 
        agency shall be responsible for any expenses of such 
        inspections and determinations.
            ``(12) Assistance for rental of manufactured 
        housing.--
                    ``(A) In general.--A public housing agency 
                may make assistance payments in accordance with 
                this subsection on behalf of a family that 
                utilizes a manufactured home as a principal 
                place of residence. Such payments may be made 
                only for the rental of the real property on 
                which the manufactured home owned by any such 
                family is located.
                    ``(B) Rent calculation.--
                            ``(i) Charges included.--For 
                        assistance pursuant to this paragraph, 
                        the rent for the space on which a 
                        manufactured home is located and with 
                        respect to which assistance payments 
                        are to be made shall include 
                        maintenance and management charges and 
                        tenant-paid utilities.
                            ``(ii) Payment standard.--The 
                        public housing agency shall establish a 
                        payment standard for the purpose of 
                        determining the monthly assistance that 
                        may be paid for any family under this 
                        paragraph. The payment standard may not 
                        exceed an amount approved or 
                        established by the Secretary.
                            ``(iii) Monthly assistance 
                        payment.--The monthly assistance 
                        payment for a family assisted under 
                        this paragraph shall be determined in 
                        accordance with paragraph (2).
            ``(13) PHA project-based assistance.--
                    ``(A) In general.--If the Secretary enters 
                into an annual contributions contract under 
                this subsection with a public housing agency 
                pursuant to which the public housing agency 
                will enter into a housing assistance payment 
                contract with respect to an existing structure 
                under this subsection--
                            ``(i) the housing assistance 
                        payment contract may not be attached to 
                        the structure unless the owner agrees 
                        to rehabilitate or newly construct the 
                        structure other than with assistance 
                        under this Act, and otherwise complies 
                        with this section; and
                            ``(ii) the public housing agency 
                        may approve a housing assistance 
                        payment contract for such existing 
                        structures for not more than 15 percent 
                        of the funding available for tenant-
                        based assistance administered by the 
                        public housing agency under this 
                        section.
                    ``(B) Extension of contract term.--In the 
                case of a housing assistance payment contract 
                that applies to a structure under this 
                paragraph, a public housing agency may enter 
                into a contract with the owner, contingent upon 
                the future availability of appropriated funds 
                for the purpose of renewing expiring contracts 
                for assistance payments, as provided in 
                appropriations Acts, to extend the term of the 
                underlying housing assistance payment contract 
                for such period as the Secretary determines to 
                be appropriate to achieve long-term 
                affordability of the housing. The contract 
                shall obligate the owner to have such 
                extensions of the underlying housing assistance 
                payment contract accepted by the owner and the 
                successors in interest of the owner.
                    ``(C) Rent calculation.--For project-based 
                assistance under this paragraph, housing 
                assistance payment contracts shall establish 
                rents and provide for rent adjustments in 
                accordance with subsection (c).
                    ``(D) Adjusted rents.--With respect to 
                rents adjusted under this paragraph--
                            ``(i) the adjusted rent for any 
                        unit shall be reasonable in comparison 
                        with rents charged for comparable 
                        dwelling units in the private, 
                        unassisted, local market; and
                            ``(ii) the provisions of subsection 
                        (c)(2)(C) shall not apply.
            ``(14) Inapplicability to tenant-based 
        assistance.--Subsection (c) shall not apply to tenant-
        based assistance under this subsection.
            ``(15) Homeownership option.--
                    ``(A) In general.--A public housing agency 
                providing assistance under this subsection may, 
                at the option of the agency, provide assistance 
                for homeownership under subsection (y).
                    ``(B) Alternative administration.--A public 
                housing agency may contract with a nonprofit 
                organization to administer a homeownership 
                program under subsection (y).
            ``(16) Rental vouchers for relocation of witnesses 
        and victims of crime.--
                    ``(A) Witnesses.--Of amounts made available 
                for assistance under this subsection in each 
                fiscal year, the Secretary, in consultation 
                with the Inspector General, shall make 
                available such sums as may be necessary for the 
                relocation of witnesses in connection with 
                efforts to combat crime in public and assisted 
                housing pursuant to requests from law 
                enforcement or prosecution agencies.
                    ``(B) Victims of crime.--
                            ``(i) In general.--Of amounts made 
                        available for assistance under this 
                        section in each fiscal year, the 
                        Secretary shall make available such 
                        sums as may be necessary for the 
                        relocation of families residing in 
                        public housing who are victims of a 
                        crime of violence (as that term is 
                        defined in section 16 of title 18, 
                        United States Code) that has been 
                        reported to an appropriate law 
                        enforcement agency.
                            ``(ii) Notice.--A public housing 
                        agency that receives amounts under this 
                        subparagraph shall establish procedures 
                        for providing notice of the 
                        availability of that assistance to 
                        families that may be eligible for that 
                        assistance.
            ``(17) Deed restrictions.--Assistance under this 
        subsection may not be used in any manner that abrogates 
        any local deed restriction that applies to any housing 
        consisting of 1 to 4 dwelling units. This paragraph may 
        not be construed to affect the provisions or 
        applicability of the Fair Housing Act.''.
    (b) Conforming Amendment.--Section 8(f)(6) of the United 
States Housing Act (42 U.S.C. 1437f(f)(6)) is amended by 
inserting ``or (o)(13)'' after ``(d)(2)''.
    (c) Applicability.--Notwithstanding the amendment made by 
subsection (a) of this section, any amendments to section 8(o) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 
that are contained in title II of this Act shall apply with 
respect to the provision of assistance under such section 
during the period before implementation (pursuant to section 
559 of this title) of such section 8(o) as amended by 
subsection (a) of this section.

SEC. 546. PUBLIC HOUSING AGENCIES.

    Section 3(b)(6) of the United States Housing Act of 1937 
(42 U.S.C. 1437a(b)(6)) is amended to read as follows:
    ``(6) Public housing agency.--
            ``(A) In general.--Except as provided in 
        subparagraph (B), the term `public housing agency' 
        means any State, county, municipality, or other 
        governmental entity or public body (or agency or 
        instrumentality thereof) which is authorized to engage 
        in or assist in the development or operation of public 
        housing.
            ``(B) Section 8 program.--For purposes of the 
        program for tenant-based assistance under section 8, 
        such term includes--
                    ``(i) a consortia of public housing 
                agencies that the Secretary determines has the 
                capacity and capability to administer a program 
                for assistance under such section in an 
                efficient manner;
                    ``(ii) any other public or private 
                nonprofit entity that, upon the effective date 
                under section 503(a) of the Quality Housing and 
                Work Responsibility Act of 1998, was 
                administering any program for tenant-based 
                assistance under section 8 of this Act (as in 
                effect before the effective date of such Act), 
                pursuant to a contract with the Secretary or a 
                public housing agency; and
                    ``(iii) with respect to any area in which 
                no public housing agency has been organized or 
                where the Secretary determines that a public 
                housing agency is unwilling or unable to 
                implement a program for tenant-based assistance 
                section 8, or is not performing effectively--
                            ``(I) the Secretary or another 
                        public or private nonprofit entity that 
                        by contract agrees to receive 
                        assistance amounts under section 8 and 
                        enter into housing assistance payments 
                        contracts with owners and perform the 
                        other functions of public housing 
                        agency under section 8; or
                            ``(II) notwithstanding any 
                        provision of State or local law, a 
                        public housing agency for another area 
                        that contracts with the Secretary to 
                        administer a program for housing 
                        assistance under section 8, without 
                        regard to any otherwise applicable 
                        limitations on its area of 
                        operation.''.

SEC. 547. ADMINISTRATIVE FEES.

    Subsection (q) of section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(q)) is amended to read as follows:
    ``(q) Administrative Fees.--
            ``(1) Fee for ongoing costs of administration.--
                    ``(A) In general.--The Secretary shall 
                establish fees for the costs of administering 
                the tenant-based assistance, certificate, 
                voucher, and moderate rehabilitation programs 
                under this section.
                    ``(B) Fiscal year 1999.--
                            ``(i) Calculation.--For fiscal year 
                        1999, the fee for each month for which 
                        a dwelling unit is covered by an 
                        assistance contract shall be--
                                    ``(I) in the case of a 
                                public housing agency that, on 
                                an annual basis, is 
                                administering a program for not 
                                more than 600 dwelling units, 
                                7.65 percent of the base 
                                amount; and
                                    ``(II) in the case of an 
                                agency that, on an annual 
                                basis, is administering a 
                                program for more than 600 
                                dwelling units (aa) for the 
                                first 600 units, 7.65 percent 
                                of the base amount, and (bb) 
                                for any additional dwelling 
                                units under the program, 7.0 
                                percent of the base amount.
                            ``(ii) Base amount.--For purposes 
                        of this subparagraph, the base amount 
                        shall be the higher of--
                                    ``(I) the fair market 
                                rental established under 
                                section 8(c) of this Act (as in 
                                effect immediately before the 
                                effective date under section 
                                503(a) of the Quality Housing 
                                and Work Responsibility Act of 
                                1998) for fiscal year 1993 for 
                                a 2-bedroom existing rental 
                                dwelling unit in the market 
                                area of the agency, and
                                    ``(II) the amount that is 
                                the lesser of (aa) such fair 
                                market rental for fiscal year 
                                1994, or (bb) 103.5 percent of 
                                the amount determined under 
                                clause (i),
                        adjusted based on changes in wage data 
                        or other objectively measurable data 
                        that reflect the costs of administering 
                        the program, as determined by the 
                        Secretary. The Secretary may require 
                        that the base amount be not less than a 
                        minimum amount and not more than a 
                        maximum amount.
                    ``(C) Subsequent fiscal years.--For 
                subsequent fiscal years, the Secretary shall 
                publish a notice in the Federal Register, for 
                each geographic area, establishing the amount 
                of the fee that would apply for public housing 
                agencies administering the program, based on 
                changes in wage data or other objectively 
                measurable data that reflect the costs of 
                administering the program, as determined by the 
                Secretary.
                    ``(D) Increase.--The Secretary may increase 
                the fee if necessary to reflect the higher 
                costs of administering small programs and 
                programs operating over large geographic areas.
                    ``(E) Decrease.--The Secretary may decrease 
                the fee for units owned by a public housing 
                agency to reflect reasonable costs of 
                administration.
            ``(2) Fee for preliminary expenses.--The Secretary 
        shall also establish reasonable fees (as determined by 
        the Secretary) for--
                    ``(A) the costs of preliminary expenses, in 
                the amount of $500, for a public housing 
                agency, except that such fee shall apply to an 
                agency only in the first year that the agency 
                administers a tenant-based assistance program 
                under this section, and only if, immediately 
                before the effective date under section 503(a) 
                of the Quality Housing and Work Responsibility 
                Act of 1998, the agency was not administering a 
                tenant-based assistance program under the 
                United States Housing Act of 1937 (as in effect 
                immediately before such effective date), in 
                connection with its initial increment of 
                assistance received;
                    ``(B) the costs incurred in assisting 
                families who experience difficulty (as 
                determined by the Secretary) in obtaining 
                appropriate housing under the programs; and
                    ``(C) extraordinary costs approved by the 
                Secretary.
            ``(3) Transfer of fees in cases of concurrent 
        geographical jurisdiction.--In each fiscal year, if any 
        public housing agency provides tenant-based assistance 
        under this section on behalf of a family who uses such 
        assistance for a dwelling unit that is located within 
        the jurisdiction of such agency but is also within the 
        jurisdiction of another public housing agency, the 
        Secretary shall take such steps as may be necessary to 
        ensure that the public housing agency that provides the 
        services for a family receives all or part of the 
        administrative fee under this section (as appropriate).
            ``(4) Applicability.--This subsection shall apply 
        to fiscal year 1999 and fiscal years thereafter.''.

SEC. 548. LAW ENFORCEMENT AND SECURITY PERSONNEL IN ASSISTED HOUSING.

    Section 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f) is amended--
            (1) by transferring and inserting subsection (z) 
        after subsection (y) (and before subsection (aa)); and
            (2) by adding at the end the following new 
        subsection:
    ``(cc) Law Enforcement and Security Personnel.--
            ``(1) In general.--Notwithstanding any other 
        provision of this Act, in the case of assistance 
        attached to a structure, for the purpose of increasing 
        security for the residents of a project, an owner may 
        admit, and assistance under this section may be 
        provided to, police officers and other security 
        personnel who are not otherwise eligible for assistance 
        under the Act.
            ``(2) Rent requirements.--With respect to any 
        assistance provided by an owner under this subsection, 
        the Secretary may--
                    ``(A) permit the owner to establish such 
                rent requirements and other terms and 
                conditions of occupancy that the Secretary 
                considers to be appropriate; and
                    ``(B) require the owner to submit an 
                application for those rent requirements, which 
                application shall include such information as 
                the Secretary, in the discretion of the 
                Secretary, determines to be necessary.
            ``(3) Applicability.--This subsection shall apply 
        to fiscal year 1999 and fiscal years thereafter.''.

SEC. 549. ADVANCE NOTICE TO TENANTS OF EXPIRATION, TERMINATION, OR 
                    OWNER NONRENEWAL OF ASSISTANCE CONTRACT.

    (a) Permanent Applicability of Notice and Endless Lease 
Provisions.--
            (1) Notice.--Section 8(c) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(c)) is amended--
                    (A) by striking paragraphs (8) and (10); 
                and
                    (B) in paragraph (9), by striking the first 
                sentence and inserting the following new 
                sentence: ``Not less than one year before 
                terminating any contract under which assistance 
                payments are received under this section, other 
                than a contract for tenant-based assistance 
                under this section, an owner shall provide 
                written notice to the Secretary and the tenants 
                involved of the proposed termination, 
                specifying the reasons for the termination with 
                sufficient detail to enable the Secretary to 
                evaluate whether the termination is lawful and 
                whether there are additional actions that can 
                be taken by the Secretary to avoid the 
                termination.''.
            (2) Endless Lease.--Section 8(d)(1)(B) of the 
        United States Housing Act of 1937 (42 U.S.C. 
        1437f(d)(1)(B)) is amended--
                    (A) in clause (ii) by striking ``(ii)'' and 
                all that follows through ``the owner'' and 
                inserting ``(ii) during the term of the lease, 
                the owner''; and
                    (B) in clause (iii), by striking ``(iii)'' 
                and all that follows through ``any criminal 
                activity'' the first place it appears and 
                inserting ``(iii) during the term of the lease, 
                any criminal activity''.
            (3) Permanent effectiveness of amendments.--The 
        amendments under this subsection are made on, and shall 
        apply beginning upon, the date of the enactment of this 
        Act, and shall apply thereafter, notwithstanding 
        section 203 of the Departments of Veterans Affairs and 
        Housing and Urban Development, and Independent Agencies 
        Appropriations Act, 1996 (42 U.S.C. 1437f note) or any 
        other provision of law (including the expiration of the 
        applicability of such section 203 or any repeal of such 
        section 203).
    (b) Exemption of Tenant-Based Assistance From Contract 
Provisions.--Paragraph (9) of section 8(c) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(c)(9)), as amended by 
subsection (a)(1) of this section, is further amended--
            (1) by striking ``(9)'' and inserting ``(8)(A)''; 
        and
            (2) by striking the third sentence and all that 
        follows and inserting the following:
    ``(B) In the case of owner who has requested that the 
Secretary renew the contract, the owner's notice under 
subparagraph (A) to the tenants shall include statements that--
            ``(i) the owner currently has a contract with the 
        Department of Housing and Urban Development that pays 
        the Government's share of the tenant's rent and the 
        date on which the contract will expire;
            ``(ii) the owner intends to renew the contract for 
        another year;
            ``(iii) renewal of the contract may depend upon the 
        Congress making funds available for such renewal;
            ``(iv) the owner is required by law to notify 
        tenants of the possibility that the contract may not be 
        renewed if Congress does not provide funding for such 
        renewals;
            ``(v) in the event of nonrenewal, the Department of 
        Housing and Urban Development will provide tenant-based 
        rental assistance to all eligible residents, enabling 
        them to choose the place they wish to rent; and
            ``(vi) the notice itself does not indicate an 
        intent to terminate the contract by either the owner or 
        the Department of Housing and Urban Development, 
        provided there is Congressional approval of funding 
        availability.
    ``(C) Notwithstanding the preceding provisions of this 
paragraph, if the owner agrees to a 5-year contract renewal 
offered by the Secretary, payments under which shall be subject 
to the availability of appropriations for any year, the owner 
shall provide a written notice to the Secretary and the tenants 
not less than 180 days before the termination of such contract. 
In the event the owner does not provide the 180-day notice 
required in the immediately preceding sentence, the owner may 
not evict the tenants or increase the tenants' rent payment 
until such time as the owner has provided the 180-day notice 
and such period has elapsed. The Secretary may allow the owner 
to renew the terminating contract for a period of time 
sufficient to give tenants 180 days of advance notice under 
such terms and conditions as the Secretary may require.
    ``(D) Any notice under this paragraph shall also comply 
with any additional requirements established by the Secretary.
    ``(E) For purposes of this paragraph, the term 
`termination' means the expiration of the assistance contract 
or an owner's refusal to renew the assistance contract, and 
such term shall include termination of the contract for 
business reasons.''.
    (c) Multifamily Assisted Housing Reform and Affordability 
Act of 1997.--Section 514(d) of the Multifamily Assisted 
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
note) is amended by inserting at the end the following new 
sentences: ``In addition, if after giving the notice required 
in the first sentence, an owner determines to terminate a 
contract, an owner shall provide an additional written notice 
with respect to the termination, in a form prescribed by the 
Secretary, not less than 120 days prior to the termination. In 
the event the owner does not provide the 120-day notice 
required in the preceding sentence, the owner may not evict the 
tenants or increase the tenants' rent payment until such time 
as the owner has provided the 120-day notice and such period 
has elapsed. The Secretary may allow the owner to renew the 
terminating contract for a period of time sufficient to give 
tenants 120 days of advance notice in accordance with section 
524 of this Act.''.

SEC. 550. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Lower Income Housing Assistance.--Section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f) is 
amended--
            (1) in subsection (a), by striking the second and 
        third sentences;
            (2) in subsection (b)--
                    (A) in the subsection heading, by striking 
                ``Rental Certificates and''; and
                    (B) in the first undesignated paragraph--
                            (i) by striking ``The Secretary'' 
                        and inserting the following:
            ``(1) In general.--The Secretary''; and
                            (ii) by striking the second 
                        sentence;
            (3) in subsection (c)--
                    (A) in paragraph (3)--
                            (i) by striking ``(A)''; and
                            (ii) by striking subparagraph (B);
                    (B) in the first sentence of paragraph (4), 
                by striking ``or by a family that qualifies to 
                receive'' and all that follows through 
                ``1990'';
                    (C) by striking paragraphs (5) and (7); and
                    (D) redesignating paragraph (6) as 
                paragraph (5);
            (4) in subsection (d)(2)--
                    (A) in subparagraph (A), by striking the 
                third sentence and all that follows through the 
                end of the subparagraph;
                    (B) in subparagraph (H), by striking 
                ``(H)'' and all that follows through ``owner'' 
                and inserting ``(H) An owner''; and
                    (C) by striking subparagraphs (B) through 
                (E) and redesignating subparagraphs (F) through 
                (H) (as amended by subparagraph (B) of this 
                paragraph) as subparagraphs (B) through (D), 
                respectively;
            (5) in subsection (f)(7)--
                    (A) by striking ``(b) or''; and
                    (B) by inserting before the period the 
                following: ``and that provides for the eligible 
                family to select suitable housing and to move 
                to other suitable housing''; and
            (6) by striking subsection (j);
            (7) by striking subsection (n);
            (8) in subsection (u)--
                    (A) in paragraph (2), by striking ``, 
                certificates''; and
                    (B) by striking ``certificates or'' each 
                place that term appears; and
            (9) in subsection (x)(2), by striking ``housing 
        certificate assistance'' and inserting ``tenant-based 
        assistance''.
    (b) HOPWA Grants for Community Residences and Services.--
Section 861(b)(1)(D) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12910(b)(1)(D)) is amended by 
striking ``certificates or vouchers'' and inserting 
``assistance''.
    (c) Section 8 Certificates and Vouchers.--Section 931 of 
the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 1437c note) is amended by striking ``assistance under 
the certificate and voucher programs under sections 8(b) and 
(o) of such Act'' and inserting ``tenant-based assistance under 
section 8 of the United States Housing Act of 1937''.
    (d) Assistance for Displaced Residents.--Section 223(a) of 
the Housing and Community Development Act of 1987 (12 U.S.C. 
4113(a)) is amended by striking ``assistance under the 
certificate and voucher programs under sections 8(b) and 8(o)'' 
and inserting ``tenant-based assistance under section 8''.
    (e) Rural Housing Preservation Grants.--Section 533(a) of 
the Housing Act of 1949 (42 U.S.C. 1490m(a)) is amended in the 
second sentence by striking ``assistance payments as provided 
by section 8(o)'' and inserting ``tenant-based assistance as 
provided under section 8''.
    (f) Repeal of Moving to Opportunities for Fair Housing 
Demonstration.--Section 152 of the Housing and Community 
Development Act of 1992 (42 U.S.C. 1437f note) is repealed.
    (g) Assistance for Troubled Multifamily Housing Projects.--
Section 201(m)(2)(A) of the Housing and Community Development 
Amendments of 1978 (12 U.S.C. 1715z-1a(m)(2)(A)) is amended by 
striking ``section 8(b)(1)'' and inserting ``section 8''.

SEC. 551. FUNDING AND ALLOCATION.

    Section 213 of the Housing and Community Development Act of 
1974 (42 U.S.C. 1439) is amended--
            (1) by striking subsection (c); and
            (2) in subsection (d)--
                    (A) in paragraph (1)(A)--
                            (i) in clause (i), by adding at the 
                        end the following new sentence: 
                        ``Amounts for tenant-based assistance 
                        under section 8(o) of the United States 
                        Housing Act of 1937 may not be provided 
                        to any public housing agency that has 
                        been disqualified from providing such 
                        assistance.''; and
                            (ii) in clause (ii), by striking 
                        ``8(b)(1)'' each place it appears and 
                        inserting ``8(o)'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraphs (3), (4), 
                and (5) as paragraphs (2), (3), and (4), 
                respectively.

SEC. 552. TREATMENT OF COMMON AREAS.

    Section 8(d) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(d)), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following 
new paragraph:
    ``(6) Treatment of common areas.--The Secretary may not 
provide any assistance amounts pursuant to an existing contract 
for project-based assistance under this section for a housing 
project and may not enter into a new or renewal contract for 
such assistance for a project unless the owner of the project 
provides consent, to such local law enforcement agencies as the 
Secretary determines appropriate, for law enforcement officers 
of such agencies to enter common areas of the project at any 
time and without advance notice upon a determination of 
probable cause by such officers that criminal activity is 
taking place in such areas.''.

SEC. 553. PORTABILITY.

    Section 8(r) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(r)) is amended--
            (1) in paragraph (2), by striking the last 
        sentence;
            (2) in paragraph (3))--
                    (A) by striking ``(b) or''; and
                    (B) by adding at the end the following: 
                ``The Secretary shall establish procedures for 
                the compensation of public housing agencies 
                that issue vouchers to families that move into 
                or out of the jurisdiction of the public 
                housing agency under portability procedures. 
                The Secretary may reserve amounts available for 
                assistance under subsection (o) to compensate 
                those public housing agencies.'';
            (3) by striking ``(r)'' and all that follows 
        through the end of paragraph (1) and inserting the 
        following:
    ``(r) Portability.--(1) In general.--(A) Any family 
receiving tenant-based assistance under subsection (o) may 
receive such assistance to rent an eligible dwelling unit if 
the dwelling unit to which the family moves is within any area 
in which a program is being administered under this section.
    ``(B)(i) Notwithstanding subparagraph (A) and subject to 
any exceptions established under clause (ii) of this 
subparagraph, a public housing agency may require that any 
family not living within the jurisdiction of the public housing 
agency at the time the family applies for assistance from the 
agency shall, during the 12-month period beginning on the date 
of initial receipt of housing assistance made available on 
behalf of the family from such agency, lease and occupy an 
eligible dwelling unit located within the jurisdiction served 
by the agency.
    ``(ii) The Secretary may establish such exceptions to the 
authority of public housing agencies established under clause 
(i).''; and
            (5) by adding at the end the following new 
        paragraph:
    ``(5) Lease violations.--A family may not receive a voucher 
from a public housing agency and move to another jurisdiction 
under the tenant-based assistance program if the family has 
moved out of the assisted dwelling unit of the family in 
violation of a lease.''.

SEC. 554. LEASING TO VOUCHER HOLDERS.

    Notwithstanding section 203(d) of the Departments of 
Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1996 (as contained in 
section 101(e) of the Omnibus Consolidated Rescissions and 
Appropriations Act of 1996 (Public Law 104-134; 42 U.S.C. 1437f 
note)), section 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f) is amended by striking subsection (t). This 
section shall apply beginning upon, and the amendment made by 
this section is made on, and shall apply beginning upon, the 
date of the enactment of this Act.

SEC. 555. HOMEOWNERSHIP OPTION.

    (a) In General.--Section 8(y) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(y)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph 
                (A), by striking ``A family receiving'' and all 
                that follows through ``if the family'' and 
                inserting the following: ``A public housing 
                agency providing tenant-based assistance on 
                behalf of an eligible family under this section 
                may provide assistance for an eligible family 
                that purchases a dwelling unit (including a 
                unit under a lease-purchase agreement) that 
                will be owned by 1 or more members of the 
                family, and will be occupied by the family, if 
                the family'';
                    (B) in subparagraph (A), by inserting 
                before the semicolon ``, or owns or is 
                acquiring shares in a cooperative''; and
                    (C) in subparagraph (B)--
                            (i) by striking ``(i) 
                        participates'' and all that follows 
                        through ``(ii) demonstrates'' and 
                        inserting ``demonstrates''; and
                            (ii) by inserting ``, except that 
                        the Secretary may provide for the 
                        consideration of public assistance in 
                        the case of an elderly family or a 
                        disabled family'' after ``other than 
                        public assistance'';
            (2) by striking paragraph (2) and inserting the 
        following new paragraph:
            ``(2) Determination of amount of assistance.--
                    ``(A) Monthly expenses not exceeding 
                payment standard.--If the monthly homeownership 
                expenses, as determined in accordance with 
                requirements established by the Secretary, do 
                not exceed the payment standard, the monthly 
                assistance payment shall be the amount by which 
                the homeownership expenses exceed the highest 
                of the following amounts, rounded to the 
                nearest dollar:
                            ``(i) 30 percent of the monthly 
                        adjusted income of the family.
                            ``(ii) 10 percent of the monthly 
                        income of the family.
                            ``(iii) If the family is receiving 
                        payments for welfare assistance from a 
                        public agency, and a portion of those 
                        payments, adjusted in accordance with 
                        the actual housing costs of the family, 
                        is specifically designated by that 
                        agency to meet the housing costs of the 
                        family, the portion of those payments 
                        that is so designated.
                    ``(B) Monthly expenses exceed payment 
                standard.--If the monthly homeownership 
                expenses, as determined in accordance with 
                requirements established by the Secretary, 
                exceed the payment standard, the monthly 
                assistance payment shall be the amount by which 
                the applicable payment standard exceeds the 
                highest of the amounts under clauses (i), (ii), 
                and (iii) of subparagraph (A).'';
            (3) by striking paragraphs (3), (4), and (5) and 
        inserting the following new paragraphs:
            ``(3) Inspections and contract conditions.--
                    ``(A) In general.--Each contract for the 
                purchase of a unit to be assisted under this 
                section shall--
                            ``(i) provide for pre-purchase 
                        inspection of the unit by an 
                        independent professional; and
                            ``(ii) require that any cost of 
                        necessary repairs be paid by the 
                        seller.
                    ``(B) Annual inspections not required.--The 
                requirement under subsection (o)(8)(A)(ii) for 
                annual inspections shall not apply to units 
                assisted under this section.
            ``(4) Other authority of the secretary.--The 
        Secretary may--
                    ``(A) limit the term of assistance for a 
                family assisted under this subsection; and
                    ``(B) modify the requirements of this 
                subsection as the Secretary determines to be 
                necessary to make appropriate adaptations for 
                lease-purchase agreements.''; and
            (4) by redesignating paragraphs (6), (7) (as 
        previously amended by this Act), and (8) as paragraphs 
        (5), (6), and (7), respectively.
    (b) Demonstration Program.--
            (1) In general.--With the consent of the affected 
        public housing agencies, the Secretary may carry out 
        (or contract with 1 or more entities to carry out) a 
        demonstration program under section 8(y) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437f(y)) to 
        expand homeownership opportunities for low-income 
        families.
            (2) Report.--The Secretary shall report annually to 
        Congress on activities conducted under this subsection.
    (c) Applicability.--This section shall take effect on, and 
the amendments made by this section are made on, and shall 
apply beginning upon, the date of the enactment of this Act.

SEC. 556. RENEWALS.

    (a) In General.--Section 8 of the United States Housing Act 
of 1937 (42 U.S.C. 1437f), as amended by the preceding 
provisions of this Act, is further amended by adding at the end 
the following new subsection:
    ``(dd) Tenant-Based Contract Renewals.--Subject to amounts 
provided in appropriation Acts, starting in fiscal year 1999, 
the Secretary shall renew all expiring tenant-based annual 
contribution contracts under this section by applying an 
inflation factor based on local or regional factors to an 
allocation baseline. The allocation baseline shall be 
calculated by including, at a minimum, amounts sufficient to 
ensure continued assistance for the actual number of families 
assisted as of October 1, 1997, with appropriate upward 
adjustments for incremental assistance and additional families 
authorized subsequent to that date.''.
    (b) Implementation.--The Secretary of Housing and Urban 
Development shall implement the provision added by the 
amendment made by subsection (a) through notice, not later than 
December 31, 1998, and shall issue final regulations which 
shall be developed pursuant to the procedures for issuance of 
regulations under the negotiated rulemaking procedure under 
subchapter III of chapter 5 of title 5, United States Code, not 
later than one year after the date of the enactment of this 
Act.

SEC. 557. MANUFACTURED HOUSING DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary of Housing and Urban 
Development shall carry out a program during fiscal years 1999, 
2000, and 2001 to demonstrate the effectiveness of providing, 
directly to eligible families that own manufactured homes and 
rent real property on which their homes are located, tenant-
based assistance for the rental of such property that would 
otherwise be provided directly to the owners of such real 
property under section 8(o)(12) of the United States Housing 
Act of 1937.
    (b) Requirements.--The demonstration program under this 
section shall be subject to the following requirements:
            (1) Scope.--The Secretary of Housing and Urban 
        Development shall carry out the demonstration program 
        with respect to the Housing Authority of the County of 
        San Diego, in California, and the Housing Authority of 
        the City of San Diego, in California.
            (2) Eligible families.--Under the demonstration 
        program, each public housing agency shall provide 
        tenant-based assistance under section 8(o) of the 
        United States Housing Act of 1937 on behalf of eligible 
        families who rent real property on which their 
        manufactured homes are located and which is owned by an 
        owner who has refused to participate in the section 8 
        program.
            (3) Participation arrangements.--Each public 
        housing agency participating in the demonstration 
        program shall enter into arrangements with families 
        assisted under the program providing for their 
        participation in the program and may, to the extent 
        authorized by the Secretary, continue to provide 
        assistance in the same manner as under the 
        demonstration program after its conclusion to such 
        participating families.
            (4) Waiver of other requirements.--Under the 
        demonstration program, the Secretary may waive, or 
        specify alternative requirements for, requirements 
        established by or under section 8 of the United States 
        Housing Act of 1937 relating to the provision of 
        assistance under subsection (j) or (o)(12) of such 
        section.
    (c) Report.--Not later than March 31, 2002, the Secretary 
shall submit a report to the Congress describing and evaluating 
the demonstration program under this section.
    (d) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 558. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated for 
providing public housing agencies with tenant-based housing 
assistance under section 8 of the United States Housing Act of 
1937--
            (1) to provide amounts for incremental assistance 
        under such section 8--
                    (A) for each of fiscal years 2000 and 2001, 
                the amount necessary to assist 100,000 
                incremental dwelling units in each such fiscal 
                year; and
                    (B) for each of fiscal years 1999, 2002, 
                and 2003, such sums as may be necessary; and
            (2) such sums as may be necessary for each of 
        fiscal years 1999, 2000, 2001, 2002, and 2003, for--
                    (A) relocation and replacement housing for 
                units that are demolished and disposed of from 
                the public housing inventory (in addition to 
                other amounts that may be available for such 
                purposes);
                    (B) relocation of residents of properties 
                that are owned by the Secretary and being 
                disposed of or that are discontinuing section 8 
                project-based assistance;
                    (C) the conversion of section 23 projects 
                to assistance under section 8;
                    (D) carrying out the family unification 
                program;
                    (E) relocation of witnesses in connection 
                with efforts to combat crime in public and 
                assisted housing pursuant to a request from a 
                law enforcement or prosecution agency;
                    (F) nonelderly disabled families affected 
                by the designation of a public housing 
                development under section 7 of the United 
                States Housing Act of 1937, the establishment 
                of preferences in accordance with section 651 
                of the Housing and Community Development Act of 
                1992, or the restriction of occupancy to 
                elderly families in accordance with section 658 
                of such Act, and to the extent the Secretary 
                determines that such amount is not needed to 
                fund applications for such affected families, 
                to other nonelderly disabled families;
                    (G) housing vouchers for homeless 
                individuals; and
                    (H) housing vouchers to compensate public 
                housing agencies which issue vouchers to 
                families that move into or out of the 
                jurisdiction of the agency under portability 
                procedures.
    (b) Assistance for Disabled Families.--
            (1) Authorization of appropriations.--There is 
        authorized to be appropriated, for tenant-based 
        assistance under section 8 of the United States Housing 
        Act of 1937, to be used in accordance with paragraph 
        (2), $50,000,000 for fiscal year 2000, and such sums as 
        may be necessary for each subsequent fiscal year.
            (2) Use.--The Secretary shall provide amounts made 
        available under paragraph (1) to public housing 
        agencies only for use to provide tenant-based 
        assistance under section 8 of the United States Housing 
        Act of 1937 for nonelderly disabled families (including 
        such families relocating pursuant to designation of a 
        public housing development under 7 of such Act or to 
        the establishment of occupancy restrictions in 
        accordance with section 658 of the Housing and 
        Community Development Act of 1992, and other nonelderly 
        disabled families who have applied to the agency for 
        assistance under such section 8).
            (3) Allocation of amounts.--The Secretary shall 
        allocate and provide amounts made available under 
        paragraph (1) to public housing agencies as the 
        Secretary determines appropriate based on the relative 
        levels of need among the authorities for assistance for 
        families described in paragraph (1).
    (c) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 559. RULEMAKING AND IMPLEMENTATION.

    (a) Interim Regulations.--The Secretary of Housing and 
Urban Development shall issue such interim regulations as may 
be necessary to implement the amendments made by this subtitle 
and other provisions in this title which relate to section 8(o) 
of the United States Housing Act of 1937.
    (b) Final Regulations.--The Secretary shall issue final 
regulations necessary to implement the amendments made by this 
subtitle and other provisions in this title which relate to 
section 8(o) of the United States Housing Act of 1937 not later 
then 1 year after the date of enactment of this Act.
    (c) Factors for Consideration.--Before the publication of 
the final regulations under subsection (b), in addition to 
public comments invited in connection with the publication of 
the interim rule, the Secretary shall--
            (1) seek recommendations on the implementation of 
        sections 8(o)(6)(B), 8(o)(7)(B), and 8(o)(10)(D) of the 
        United States Housing Act of 1937 and of renewals of 
        expiring tenant-based assistance from organizations 
        representing--
                    (A) State or local public housing agencies;
                    (B) owners and managers of tenant-based 
                housing assisted under section 8 of the United 
                States Housing Act of 1937;
                    (C) families receiving tenant-based 
                assistance under section 8 of the United States 
                Housing Act of 1937; and
                    (D) legal service organizations; and
            (2) convene not less than 2 public forums at which 
        the persons or organizations making recommendations 
        under paragraph (1) may express views concerning the 
        proposed disposition of the recommendations.
    (d) Conversion Assistance.--
            (1) In general.--The Secretary may provide for the 
        conversion of assistance under the certificate and 
        voucher programs under subsections (b) and (o) of 
        section 8 of the United States Housing Act of 1937, as 
        in effect before the applicability of the amendments 
        made by this subtitle, to the voucher program 
        established by the amendments made by this subtitle.
            (2) Continued applicability.--The Secretary may 
        apply the provisions of the United States Housing Act 
        of 1937, or any other provision of law amended by this 
        subtitle, as those provisions were in effect 
        immediately before the date of the enactment of this 
        Act (except that such provisions shall be subject to 
        any amendments to such provisions that may be contained 
        in title II of this Act), to assistance obligated by 
        the Secretary before October 1, 1999, for the 
        certificate or voucher program under section 8 of the 
        United States Housing Act of 1937, if the Secretary 
        determines that such action is necessary for 
        simplification of program administration, avoidance of 
        hardship, or other good cause.
    (e) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

           Subtitle D--Home Rule Flexible Grant Demonstration

SEC. 561. HOME RULE FLEXIBLE GRANT DEMONSTRATION PROGRAM.

    The United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended by adding at the end the following new title:

           ``TITLE IV--HOME RULE FLEXIBLE GRANT DEMONSTRATION

``SEC. 401. PURPOSE.

    The purpose of this title is to demonstrate the 
effectiveness of authorizing local governments and 
municipalities, in coordination with the public housing 
agencies for such jurisdictions--
            ``(1) to receive and combine program allocations of 
        covered housing assistance; and
            ``(2) to design creative approaches for providing 
        and administering Federal housing assistance based on 
        the particular needs of the jurisdictions that--
                    ``(A) provide incentives to low-income 
                families with children whose head of the 
                household is employed, seeking employment, or 
                preparing for employment by participating in a 
                job training or educational program, or any 
                program that otherwise assists individuals in 
                obtaining employment and attaining economic 
                self-sufficiency;
                    ``(B) reduce costs of Federal housing 
                assistance and achieve greater cost-
                effectiveness in Federal housing assistance 
                expenditures;
                    ``(C) increase the stock of affordable 
                housing and housing choices for low-income 
                families;
                    ``(D) increase homeownership among low-
                income families;
                    ``(E) reduce geographic concentration of 
                assisted families;
                    ``(F) reduce homelessness through providing 
                permanent housing solutions;
                    ``(G) improve program management; and
                    ``(H) achieve such other purposes with 
                respect to low-income families, as determined 
                by the participating local governments and 
                municipalities in coordination with the public 
                housing agencies;

``SEC. 402. FLEXIBLE GRANT PROGRAM.

    ``(a) Authority and Use.--The Secretary shall carry out a 
demonstration program in accordance with the purposes under 
section 401 and the provisions of this title. A jurisdiction 
approved by the Secretary for participation in the program may 
receive and combine and enter into performance-based contracts 
for the use of amounts of covered housing assistance, in the 
manner determined appropriate by the participating 
jurisdiction, during the period of the jurisdiction's 
participation--
            ``(1) to provide housing assistance and services 
        for low-income families in a manner that facilitates 
        the transition of such families to work;
            ``(2) to reduce homelessness through providing 
        permanent housing solutions;
            ``(3) to increase homeownership among low-income 
        families; or
            ``(4) for other housing purposes for low-income 
        families determined by the participating jurisdiction.
    ``(b) Period of Participation.--A jurisdiction may 
participate in the demonstration program under this title for a 
period consisting of not less than 1 nor more than 5 fiscal 
years.
    ``(c) Participating Jurisdictions.--
                    ``(1) In general.--Subject to paragraph 
                (2), during the 4-year period consisting of 
                fiscal years 1999 through 2002, the Secretary 
                may approve for participation in the program 
                under this title not more than an aggregate of 
                100 jurisdictions over the entire term of the 
                demonstration program. A jurisdiction that was 
                approved for participation in the demonstration 
                program under this title in a fiscal year and 
                that is continuing such participation in any 
                subsequent fiscal year shall count as a single 
                jurisdiction for purposes of the numerical 
                limitation under this paragraph.
            ``(2) Exclusion of high performing agencies.--
        Notwithstanding any other provision of this title other 
        than paragraph (4) of this subsection, the Secretary 
        may approve for participation in the demonstration 
        program under this title only jurisdictions served by 
        public housing agencies that--
                    ``(A) are not designated as high-performing 
                agencies, pursuant to their most recent scores 
                under the public housing management assessment 
                program under section 6(j)(2) (or any successor 
                assessment program for public housing 
                agencies), as of the time of approval; and
                    ``(B) have a most recent score under the 
                public housing management assessment program 
                under section 6(j)(2) (or any successor 
                assessment program for public housing 
                agencies), as of the time of approval, that is 
                among the lowest 40 percent of the scores of 
                all agencies.
            ``(3) Limitation on troubled and non-troubled 
        phas.--Of the jurisdictions approved by the Secretary 
        for participation in the demonstration program under 
        this title--
                    ``(A) not more than 55 may be jurisdictions 
                served by a public housing agency that, at the 
                time of approval, is designated as a troubled 
                agency under the public housing management 
                assessment program under section 6(j)(2) (or 
                any successor assessment program for public 
                housing agencies); and
                    ``(B) not more than 45 may be jurisdictions 
                served by a public housing agency that, at the 
                time of approval, is not designated as a 
                troubled agency under the public housing 
                management assessment program under section 
                6(j)(2) (or any successor assessment program 
                for public housing agencies).
            ``(4) Exception.--If the City of Indianapolis, 
        Indiana submits an application for participation in the 
        program under this title and, upon review of the 
        application under section 406(b), the Secretary 
        determines that such application is approvable under 
        this title, the Secretary shall approve such 
        application, notwithstanding the second sentence of 
        section 406(b)(2). Such City shall count for purposes 
        of the numerical limitations on jurisdictions under 
        paragraphs (1) and (3) of section 402(c), but the 
        provisions of section 402(c)(2) (relating to exclusion 
        of high-performing agencies) shall not apply to such 
        City.

``SEC. 403. PROGRAM ALLOCATION AND COVERED HOUSING ASSISTANCE.

    ``(a) Program Allocation.--In each fiscal year, the amount 
made available to each participating jurisdiction under the 
demonstration program under this title shall be equal to the 
sum of the amounts of covered housing assistance that would 
otherwise be made available under the provisions of this Act to 
the public housing agency for the jurisdiction.
    ``(b) Covered Housing Assistance.--For purposes of this 
title, the term `covered housing assistance' means--
            ``(1) operating assistance under section 9 (as in 
        effect before the effective date under section 503(a) 
        of the Quality Housing and Work Responsibility Act of 
        1998);
            ``(2) modernization assistance under section 14 (as 
        in effect before the effective date under section 
        503(a) of the Quality Housing and Work Responsibility 
        Act of 1998);
            ``(3) assistance for the certificate and voucher 
        programs under section 8 (as in effect before the 
        effective date under section 503(a) of the Quality 
        Housing and Work Responsibility Act of 1998);
            ``(4) assistance from the Operating Fund under 
        section 9(e);
            ``(5) assistance from the Capital Fund under 
        section 9(d); and
            ``(6) tenant-based assistance under section 8 (as 
        amended by the Quality Housing and Work Responsibility 
        Act of 1998).

``SEC. 404. APPLICABILITY OF REQUIREMENTS UNDER PROGRAMS FOR COVERED 
                    HOUSING ASSISTANCE.

    ``(a) In General.--In each fiscal year of the demonstration 
program under this title, amounts made available to a 
participating jurisdiction under the demonstration program 
shall be subject to the same terms and conditions as such 
amounts would be subject to if made available under the 
provisions of this Act pursuant to which covered housing 
assistance is otherwise made available under this Act to the 
public housing agency for the jurisdiction, except that--
            ``(1) the Secretary may waive any such term or 
        condition identified by the jurisdiction to the extent 
        that the Secretary determines such action to be 
        appropriate to carry out the purposes of the 
        demonstration program under this title; and
            ``(2) the participating jurisdiction may combine 
        the amounts made available and use the amounts for any 
        activity eligible under the programs under sections 8 
        and 9.
    ``(b) Number of Families Assisted.--In carrying out the 
demonstration program under this title, each participating 
jurisdiction shall assist substantially the same total number 
of eligible low-income families as would have otherwise been 
served by the public housing agency for the jurisdiction had 
the jurisdiction not participated in the demonstration program 
under this title.
    ``(c) Protection of Recipients.--This title may not be 
construed to authorize the termination of assistance to any 
recipient receiving assistance under this Act before the date 
of enactment of this title as a result of the implementation of 
the demonstration program under this title.
    ``(d) Effect on Ability To Compete for Other Programs.--
This title may not be construed to affect the ability of any 
applying or participating jurisdiction (or a public housing 
agency for any such jurisdiction) to compete or otherwise apply 
for or receive assistance under any other housing assistance 
program administered by the Secretary.

``SEC. 405. PROGRAM REQUIREMENTS.

    ``(a) Applicability of Certain Provisions.--Notwithstanding 
section 404(a)(1), the Secretary may not waive, with respect to 
any participating jurisdiction, any of the following 
provisions:
            ``(1) The first sentence of paragraph (1) of 
        section 3(a) (relating to eligibility of low-income 
        families).
            ``(2) Section 16 (relating to income eligibility 
        and targeting of assistance).
            ``(3) Paragraph (2) of section 3(a) (relating to 
        rental payments for public housing families).
            ``(4) Paragraphs (2) and (3) of section 8(o) (to 
        the extent such paragraphs limit the amount of rent 
        paid by families assisted with tenant-based 
        assistance).
            ``(5) Section 18 (relating to demolition or 
        disposition of public housing).
    ``(b) Compliance With Assistance Plan.--A participating 
jurisdiction shall provide assistance using amounts received 
pursuant to this title in the manner set forth in the plan of 
the jurisdiction approved by the Secretary under section 
406(a)(2).

``SEC. 406. APPLICATION.

    ``(a) In General.--The Secretary shall provide for 
jurisdictions to submit applications for approval to 
participate in the demonstration program under this title. An 
application--
            ``(1) shall be submitted only after the 
        jurisdiction provides for citizen participation through 
        a public hearing and, if appropriate, other means;
            ``(2) shall include a plan for the provision of 
        housing assistance with amounts received pursuant to 
        this title that--
                    ``(A) is developed by the jurisdiction;
                    ``(B) takes into consideration comments 
                from the public hearing, any other public 
                comments on the proposed program, and comments 
                from current and prospective residents who 
                would be affected; and
                    ``(C) identifies each term or condition for 
                which the jurisdiction is requesting waiver 
                under section 404 (a)(1);
            ``(3) shall describe how the plan for use of 
        amounts will assist in meeting the purposes of, and be 
        used in accordance with, sections 401 and 402(a), 
        respectively;
            ``(4) shall propose standards for measuring 
        performance in using assistance provided pursuant to 
        this title based on the performance standards under 
        subsection (b)(4);
            ``(5) shall propose the length of the period for 
        participation of the jurisdiction is in the 
        demonstration program under this title;
            ``(6) shall--
                    ``(A) in the case of the application of any 
                jurisdiction within whose boundaries are areas 
                subject to any other unit of general local 
                government, include the signed consent of the 
                appropriate executive official of such unit to 
                the application; and
                    ``(B) in the case of the application of a 
                consortia of units of general local government 
                (as provided under section 409(1)(B)), include 
                the signed consent of the appropriate executive 
                officials of each unit included in the 
                consortia;
            ``(7) shall include information sufficient, in the 
        determination of the Secretary--
                    ``(A) to demonstrate that the jurisdiction 
                has or will have management and administrative 
                capacity sufficient to carry out the plan under 
                paragraph (2), including a demonstration that 
                the applicant has a history of effectively 
                administering amounts provided under other 
                programs of the Department of Housing and Urban 
                Development, such as the community development 
                block grant program, the HOME investment 
                partnerships program, and the programs for 
                assistance for the homeless under the Stewart 
                B. McKinney Homeless Assistance Act;
                    ``(B) to demonstrate that carrying out the 
                plan will not result in excessive duplication 
                of administrative efforts and costs, 
                particularly with respect to activities 
                performed by public housing agencies operating 
                within the boundaries of the jurisdiction;
                    ``(C) to describe the function and 
                activities to be carried out by such public 
                housing agencies affected by the plan; and
                    ``(D) to demonstrate that the amounts 
                received by the jurisdiction will be maintained 
                separate from other funds available to the 
                jurisdiction and will be used only to carry out 
                the plan;
            ``(8) shall include information describing how the 
        jurisdiction will make decisions regarding asset 
        management of housing for low-income families under 
        programs for covered housing assistance or assisted 
        with grant amounts under this title;
            ``(9) shall--
                    ``(A) clearly identify any State or local 
                laws that will affect implementation of the 
                plan under paragraph (2) and any contractual 
                rights and property interests that may be 
                affected by the plan;
                    ``(B) describe how the plan will be carried 
                out with respect to such laws, rights, and 
                interests; and
                    ``(C) contain a legal memorandum sufficient 
                to describe how the plan will comply with such 
                laws and how the plan will be carried out 
                without violating or impairing such rights and 
                interests; and
            ``(10) shall identify procedures for how the 
        jurisdiction shall return to providing covered 
        assistance for the jurisdiction under the provisions of 
        title I, in the case of determination under subsection 
        (b)(4)(B).
A plan required under paragraph (2) to be included in the 
application may be contained in a memorandum of agreement or 
other document executed by a jurisdiction and public housing 
agency, if such document is submitted together with the 
application.
    ``(b) Review, Approval, and Performance Standards.--
            ``(1) Review.--The Secretary shall review each 
        application for participation in the demonstration 
        program under this title and shall determine and notify 
        the jurisdiction submitting the application, not later 
        than 90 days after its submission, of whether the 
        application is approvable under this title. If the 
        Secretary determines that the application of a 
        jurisdiction is approvable under this title, the 
        Secretary shall provide affected public housing 
        agencies an opportunity to review and to provide 
        written comments on the application for a period of not 
        less than 30 days after notification under the 
        preceding sentence. If the Secretary determines that an 
        application is not approvable under this title, the 
        Secretary shall notify the jurisdiction submitting the 
        application of the reasons for such determination. Upon 
        making a determination of whether an application is 
        approvable or nonapprovable under this title, the 
        Secretary shall make such determination publicly 
        available in writing together with a written statement 
        of the reasons for such determination.
            ``(2) Approval.--The Secretary may approve 
        jurisdictions for participation in the demonstration 
        program under this title, but only from among 
        applications that the Secretary has determined under 
        paragraph are approvable under this title and only in 
        accordance with section 402(c). The Secretary shall 
        base the selection of jurisdictions to approve on the 
        potential success, as evidenced by the application, 
        in--
                    ``(A) achieving the goals set forth in the 
                performance standards under paragraph (4)(A); 
                and
                    ``(B) increasing housing choices for low-
                income families.
            ``(3) Agreement.--The Secretary shall offer to 
        enter into an agreement with each jurisdiction approved 
        for participation in the program under this title 
        providing for assistance pursuant to this title for a 
        period in accordance with section 402(b) and 
        incorporating a requirement that the jurisdiction 
        achieve a particular level of performance in each of 
        the areas for which performance standards are 
        established under paragraph (4)(A) of this subsection. 
        If the Secretary and the jurisdiction enter into an 
        agreement, the Secretary shall provide any covered 
        housing assistance for the jurisdiction in the manner 
        authorized under this title. The Secretary may not 
        provide covered housing assistance for a jurisdiction 
        in the manner authorized under this title unless the 
        Secretary and jurisdiction enter into an agreement 
        under this paragraph.
            ``(4) Performance standards.--
                    ``(A) Establishment.--The Secretary and 
                each participating jurisdiction may 
                collectively establish standards for evaluating 
                the performance of the participating 
                jurisdiction in meeting the purposes under 
                section 401 of this title, which may include 
                standards for--
                            ``(i) moving dependent low-income 
                        families to economic self-sufficiency;
                            ``(ii) reducing the per-family cost 
                        of providing housing assistance;
                            ``(iii) expanding the stock of 
                        affordable housing and housing choices 
                        for low-income families;
                            ``(iv) improving program 
                        management;
                            ``(v) increasing the number of 
                        homeownership opportunities for low-
                        income families;
                            ``(vi) reducing homelessness 
                        through providing permanent housing 
                        resources;
                            ``(vii) reducing geographic 
                        concentration of assisted families; and
                            ``(viii) any other performance 
                        goals that the Secretary and the 
                        participating jurisdiction may 
                        establish.
                    ``(B) Failure to comply.--If, at any time 
                during the participation of a jurisdiction in 
                the program under this title, the Secretary 
                determines that the jurisdiction is not 
                sufficiently meeting, or making progress toward 
                meeting, the levels of performance incorporated 
                into the agreement of the jurisdiction pursuant 
                to subparagraph (A), the Secretary shall 
                terminate the participation of the jurisdiction 
                in the program under this title and require the 
                implementation of the procedures included in 
                the application of the jurisdiction pursuant to 
                subsection (a)(10).
            ``(5) Troubled agencies.--The Secretary may 
        establish requirements for the approval of applications 
        under this section submitted by public housing agencies 
        designated under section 6(j)(2) as troubled, which may 
        include additional or different criteria determined by 
        the Secretary to be more appropriate for such agencies.
    ``(c) Status of PHAs.--This title may not be construed to 
require any change in the legal status of any public housing 
agency or in any legal relationship between a jurisdiction and 
a public housing agency as a condition of participation in the 
program under this title.
    ``(d) PHA Plans.--In carrying out this title, the Secretary 
may provide for a streamlined public housing agency plan and 
planning process under section 5A for participating 
jurisdictions.

``SEC. 407. TRAINING.

    ``The Secretary, in consultation with representatives of 
public and assisted housing interests, may provide training and 
technical assistance relating to providing assistance under 
this title and may conduct detailed evaluations of up to 30 
jurisdictions for the purpose of identifying replicable program 
models that are successful at carrying out the purposes of this 
title.

``SEC. 408. ACCOUNTABILITY.

    ``(a) Maintenance of Records.--Each participating 
jurisdiction shall maintain such records as the Secretary may 
require to--
            ``(1) document the amounts received by the 
        jurisdiction under this Act and the disposition of such 
        amounts under the demonstration program under this 
        title;
            ``(2) ensure compliance by the jurisdiction with 
        this title; and
            ``(3) evaluate the performance of the jurisdiction 
        under the demonstration program under this title.
    ``(b) Reports.--Each participating jurisdiction shall 
annually submit to the Secretary a report in a form and at a 
time specified by the Secretary, which shall include--
            ``(1) documentation of the use of amounts made 
        available to the jurisdiction under this title;
            ``(2) any information as the Secretary may request 
        to assist the Secretary in evaluating the demonstration 
        program under this title; and
            ``(3) a description and analysis of the effect of 
        assisted activities in addressing the objectives of the 
        demonstration program under this title.
    ``(c) Access To Documents By Secretary and Comptroller 
General.--The Secretary and the Comptroller General of the 
United States, or any duly authorized representative of the 
Secretary or the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, 
papers, and records maintained by a participating jurisdiction 
that relate to the demonstration program under this title.
    ``(d) Performance Review and Evaluation.--
            ``(1) Performance review.--Based on the performance 
        standards established under section 406(b)(4), the 
        Secretary shall monitor the performance of 
        participating jurisdictions in providing assistance 
        under this title.
            ``(2) Status report.--Not later than 60 days after 
        the conclusion of the second year of the demonstration 
        program under this title, the Secretary shall submit to 
        Congress an interim report on the status of the 
        demonstration program and the progress each 
        participating jurisdiction in achieving the purposes of 
        the demonstration program under section 401.

``SEC. 409. DEFINITIONS.

    ``For purposes of this title, the following definitions 
shall apply:
            ``(1) Jurisdiction.--The term `jurisdiction' 
        means--
                    ``(A) a unit of general local government 
                (as such term is defined in section 104 of the 
                Cranston-Gonzalez National Affordable Housing 
                Act) that has boundaries, for purposes of 
                carrying out this title, that--
                            ``(i) wholly contain the area 
                        within which a public housing agency is 
                        authorized to operate; and
                            ``(ii) do not contain any areas 
                        contained within the boundaries of any 
                        other participating jurisdiction; and
                    ``(B) a consortia of such units of general 
                local government, organized for purposes of 
                this title.
            ``(2) Participating jurisdiction.--The term 
        `participating jurisdiction' means, with respect to a 
        period for which such an agreement is made, a 
        jurisdiction that has entered into an agreement under 
        section 406(b)(3) to receive assistance pursuant to 
        this title for such fiscal year.

``SEC. 410. TERMINATION AND EVALUATION.

    ``(a) Termination.--The demonstration program under this 
title shall terminate not less than 2 and not more than 5 years 
after the date on which the demonstration program is commenced.
    ``(b) Evaluation.--Not later than 6 months after the 
termination of the demonstration program under this title, the 
Secretary shall submit to the Congress a final report, which 
shall include--
            ``(1) an evaluation the effectiveness of the 
        activities carried out under the demonstration program; 
        and
            ``(2) any findings and recommendations of the 
        Secretary for any appropriate legislative action.

``SEC. 411. APPLICABILITY.

    ``This title shall take effect on the date of the enactment 
of the Quality Housing and Work Responsibility Act of 1998.''.

  Subtitle E--Accountability and Oversight of Public Housing Agencies

SEC. 563. STUDY OF ALTERNATIVE METHODS FOR EVALUATING PUBLIC HOUSING 
                    AGENCIES.

    (a) In General.--The Secretary of Housing and Urban 
Development shall provide under subsection (e) for a study to 
be conducted to determine the effectiveness of various 
alternative methods of evaluating the performance of public 
housing agencies and other providers of federally assisted 
housing.
    (b) Purposes.--The purposes of the study under this section 
shall be--
            (1) to identify and examine various methods of 
        evaluating and improving the performance of public 
        housing agencies in administering public housing and 
        tenant-based rental assistance programs and of other 
        providers of federally assisted housing, which are 
        alternatives to oversight by the Department of Housing 
        and Urban Development; and
            (2) to identify specific monitoring and oversight 
        activities currently conducted by the Department of 
        Housing and Urban Development and to evaluate whether 
        such activities should be eliminated, expanded, 
        modified, or transferred to other entities (including 
        governmental and private entities) to increase accuracy 
        and effectiveness and improve monitoring.
    (c) Evaluation of Various Performance Evaluation Systems.--
To carry out the purposes under subsection (b), the study under 
this section shall identify, and analyze the advantages and 
disadvantages of various methods of regulating and evaluating 
the performance of public housing agencies and other providers 
of federally assisted housing, including the following methods:
            (1) Current system.--The system pursuant to the 
        United States Housing Act of 1937, including the 
        methods and requirements under such system for 
        reporting, auditing, reviewing, sanctioning, and 
        monitoring of such agencies and housing providers and 
        the public housing management assessment program 
        pursuant to section 6(j) of the United States Housing 
        Act of 1937.
            (2) Accreditation models.--Various models that are 
        based upon accreditation of such agencies and housing 
        providers, subject to the following requirements:
                    (A) The study shall identify and analyze 
                various models used in other industries and 
                professions for accreditation and determine the 
                extent of their applicability to the programs 
                for public housing and federally assisted 
                housing.
                    (B) If any accreditation models are 
                determined to be applicable to the public and 
                federally assisted housing programs, the study 
                shall identify appropriate goals, objectives, 
                and procedures for an accreditation program for 
                such agencies and housing providers.
                    (C) The study shall evaluate the 
                feasibility and merit of establishing an 
                independent accreditation and evaluation entity 
                to assist, supplement, or replace the role of 
                the Department of Housing and Urban Development 
                in assessing and monitoring the performance of 
                such agencies and housing providers.
                    (D) The study shall identify the necessary 
                and appropriate roles and responsibilities of 
                various entities that would be involved in an 
                accreditation program, including the Department 
                of Housing and Urban Development, the Inspector 
                General of the Department, an accreditation 
                entity, independent auditors and examiners, 
                local entities, and public housing agencies.
                    (E) The study shall estimate the costs 
                involved in developing and maintaining such an 
                independent accreditation program.
            (3) Performance based models.--Various performance-
        based models, including systems that establish 
        performance goals or targets, assess the compliance 
        with such goals or targets, and provide for incentives 
        or sanctions based on performance relative to such 
        goals or targets.
            (4) Local review and monitoring models.--Various 
        models providing for local, resident, and community 
        review and monitoring of such agencies and housing 
        providers, including systems for review and monitoring 
        by local and State governmental bodies and agencies.
            (5) Private models.--Various models using private 
        contractors for review and monitoring of such agencies 
        and housing providers.
            (6) Other models.--Various models of any other 
        systems that may be more effective and efficient in 
        regulating and evaluating such agencies and housing 
        providers.
    (d) Consultation.--The entity that, pursuant to subsection 
(e), carries out the study under this section shall, in 
carrying out the study, consult with individuals and 
organizations experienced in managing public housing, private 
real estate managers, representatives from State and local 
governments, residents of public housing, families and 
individuals receiving tenant-based assistance, the Secretary of 
Housing and Urban Development, the Inspector General of the 
Department of Housing and Urban Development, and the 
Comptroller General of the United States.
    (e) Contract to Conduct Study.--
            (1) In general.--Subject to paragraph (2), the 
        Secretary shall enter into a contract, within 90 days 
        of the enactment of this Act, with a public or 
        nonprofit private entity to conduct the study under 
        this section, using amounts made available pursuant to 
        subsection (g).
            (2) National academy of public administration.--The 
        Secretary shall request the National Academy of Public 
        Administration to enter into the contract under 
        paragraph (1) to conduct the study under this section. 
        If such Academy declines to conduct the study, the 
        Secretary shall carry out such paragraph through other 
        public or nonprofit private entities, selected through 
        a competitive process.
    (f) Report.--
            (1) Interim report.--The Secretary shall ensure 
        that, not later than the expiration of the 6-month 
        period beginning on the date of the execution of the 
        contract under subsection (e)(1), the entity conducting 
        the study under this section submits to the Congress an 
        interim report describing the actions taken to carry 
        out the study, the actions to be taken to complete the 
        study, and any findings and recommendations available 
        at the time.
            (2) Final report.--The Secretary shall ensure 
        that--
                    (A) not later than the expiration of the 
                12-month period beginning on the date of the 
                execution of the contract under subsection 
                (e)(1), the study required under this section 
                is completed and a report describing the 
                findings and recommendations as a result of the 
                study is submitted to the Congress; and
                    (B) before submitting the report under this 
                paragraph to the Congress, the report is 
                submitted to the Secretary, national 
                organizations for public housing agencies, and 
                other appropriate national organizations at 
                such time to provide the Secretary and such 
                agencies an opportunity to review the report 
                and provide written comments on the report, 
                which shall be included together with the 
                report upon submission to the Congress under 
                subparagraph (A).
    (g) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 564. PUBLIC HOUSING MANAGEMENT ASSESSMENT PROGRAM.

    Section 6(j) of the United States Housing Act of 1937 (42 
U.S.C. 1437d(j)), as amended by the preceding provisions of 
this Act, is further amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (B) and 
                inserting the following new subparagraph:
            ``(B) The amount and percentage of funds provided 
        to the public housing agency from the Capital Fund 
        under section 9(d) which remain unobligated by the 
        public housing agency after 3 years.'';
                    (B) in subparagraph (D), by striking 
                ``energy'' and inserting ``utility'';
                    (C) by transferring and inserting 
                subparagraph (E) after subparagraph (D);
                    (D) by redesignating subparagraph (H) as 
                subparagraph (K); and
                    (E) by inserting after subparagraph (G) the 
                following new subparagraphs:
            ``(H) The extent to which the public housing 
        agency--
                    ``(i) coordinates, promotes, or provides 
                effective programs and activities to promote 
                the economic self-sufficiency of public housing 
                residents; and
                    ``(ii) provides public housing residents 
                with opportunities for involvement in the 
                administration of the public housing.
            ``(I) The extent to which the public housing 
        agency--
                    ``(i) implements effective screening and 
                eviction policies and other anticrime 
                strategies; and
                    ``(ii) coordinates with local government 
                officials and residents in the project and 
                implementation of such strategies.
            ``(J) The extent to which the public housing agency 
        is providing acceptable basic housing conditions.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A)(i)--
                            (i) by inserting after the first 
                        sentence the following: ``Such 
                        procedures shall provide that an agency 
                        that fails on a widespread basis to 
                        provide acceptable basic housing 
                        conditions for its residents shall be 
                        designated as a troubled public housing 
                        agency. The Secretary may use a 
                        simplified set of indicators for public 
                        housing agencies with less than 250 
                        public housing units.''; and
                            (ii) by striking ``under section 
                        14'' and inserting ``for assistance 
                        from the Capital Fund under section 
                        9(d);
                    (B) in subparagraph (A)(iii), by striking 
                ``under section 14'' and inserting ``for 
                assistance from the Capital Fund under section 
                9(d)'';
                    (C) in subparagraph (B)(i)--
                            (i) by inserting ``with more than 
                        250 units'' after ``public housing 
                        agency''; and
                            (ii) by striking ``review conducted 
                        under section 14(p)'' and inserting 
                        ``comparable and recent review''; and
                    (D) in the first sentence of subparagraph 
                (C), by inserting ``(if applicable)'' after 
                ``subparagraph (B)'';
            (3) in paragraph (5)(F), as so redesignated by the 
        preceding provisions of this Act, by striking ``program 
        under section 14'' and all that follows and inserting 
        ``program for assistance from the Capital Fund under 
        section 9(d) and specifies the amount of assistance the 
        agency received under such program.''; and
            (4) by adding at the end the following new 
        paragraphs:
    ``(6)(A) To the extent that the Secretary determines such 
action to be necessary in order to ensure the accuracy of any 
certification made under this section, the Secretary shall 
require an independent auditor to review documentation or other 
information maintained by a public housing agency pursuant to 
this section to substantiate each certification submitted by 
the agency or corporation relating to the performance of that 
agency or corporation.
    ``(B) The Secretary may withhold, from assistance otherwise 
payable to the agency or corporation under section 9, amounts 
sufficient to pay for the reasonable costs of any review under 
this paragraph.
    ``(7) The Secretary shall apply the provisions of this 
subsection to resident management corporations in the same 
manner as applied to public housing agencies.''.

SEC. 565. EXPANSION OF POWERS FOR DEALING WITH PUBLIC HOUSING AGENCIES 
                    IN SUBSTANTIAL DEFAULT.

    (a) In General.--Section 6(j)(3) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(j)(3)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking clause (i) and inserting 
                the following new clause:
            ``(i) solicit competitive proposals from other 
        public housing agencies and private housing management 
        agents which (I) in the discretion of the Secretary, 
        may be selected by existing public housing residents 
        through administrative procedures established by the 
        Secretary, and (II) if appropriate, shall provide for 
        such agents to manage all, or part, of the housing 
        administered by the public housing agency or all or 
        part of the other programs of the agency;'';
                    (B) in clause (iii), by striking ``under 
                section 14'' and inserting ``from the Capital 
                Fund under section 9(d)''; and
                    (C) by striking clause (iv) and inserting 
                the following new clauses:
            ``(iv) take possession of all or part of the public 
        housing agency, including all or part of any project or 
        program of the agency, including any project or program 
        under any other provision of this title; and
            ``(v) require the agency to make other arrangements 
        acceptable to the Secretary and in the best interests 
        of the public housing residents and families assisted 
        under section 8 for managing all, or part, of the 
        public housing administered by the agency or of the 
        programs of the agency.''; and
            (2) by striking subparagraphs (B) through (D) and 
        inserting the following new subparagraphs:
    ``(B)(i) If a public housing agency is identified as 
troubled under this subsection, the Secretary shall notify the 
agency of the troubled status of the agency.
    ``(ii)(I) Upon the expiration of the 1-year period 
beginning on the later of the date on which the agency receives 
initial notice from the Secretary of the troubled status of the 
agency under clause (i) and the date of the enactment of the 
Quality Housing and Work Responsibility Act of 1998, the agency 
shall improve its performance, as measured by the performance 
indicators established pursuant to paragraph (1), by at least 
50 percent of the difference between the most recent 
performance measurement and the measurement necessary to remove 
that agency's designation as troubled.
    ``(II) Upon the expiration of the 2-year period beginning 
on the later of the date on which the agency receives initial 
notice from the Secretary of the troubled status of the agency 
under clause (i) and the date of the enactment of the Quality 
Housing and Work Responsibility Act of 1998, the agency shall 
improve its performance, as measured by the performance 
indicators established pursuant to paragraph (1), such that the 
agency is no longer designated as troubled.
    ``(III) In the event that a public housing agency 
designated as troubled under this subsection fails to comply 
with the requirements set forth in subclause (I) or (II), the 
Secretary shall--
            ``(aa) in the case of a troubled public housing 
        agency with 1,250 or more units, petition for the 
        appointment of a receiver pursuant to subparagraph 
        (A)(ii); or
            ``(bb) in the case of a troubled public housing 
        agency with fewer than 1,250 units, either petition for 
        the appointment of a receiver pursuant to subparagraph 
        (A)(ii), or take possession of the public housing 
        agency (including all or part of any project or program 
        of the agency) pursuant to subparagraph (A)(iv) and 
        appoint, on a competitive or noncompetitive basis, an 
        individual or entity as an administrative receiver to 
        assume the responsibilities of the Secretary for the 
        administration of all or part of the public housing 
        agency (including all or part of any project or program 
        of the agency).
This subparagraph shall not be construed to limit the courses 
of action available to the Secretary under subparagraph (A).
    ``(IV) During the period between the date on which a 
petition is filed under subclause (III)(aa) and the date on 
which a receiver assumes responsibility for the management of 
the public housing agency under such subclause, the Secretary 
may take possession of the public housing agency (including all 
or part of any project or program of the agency) pursuant to 
subparagraph (A)(iv) and may appoint, on a competitive or 
noncompetitive basis, an individual or entity as an 
administrative receiver to assume the responsibilities of the 
Secretary for the administration of all or part of the public 
housing agency (including all or part of any project or program 
of the agency).
    ``(C) If a receiver is appointed pursuant to subparagraph 
(A)(ii), in addition to the powers accorded by the court 
appointing the receiver, the receiver--
            ``(i) may abrogate any contract to which the United 
        States or an agency of the United States is not a party 
        that, in the receiver's written determination (which 
        shall include the basis for such determination), 
        substantially impedes correction of the substantial 
        default, but only after the receiver determines that 
        reasonable efforts to renegotiate such contract have 
        failed;
            ``(ii) may demolish and dispose of all or part of 
        the assets of the public housing agency (including all 
        or part of any project of the agency) in accordance 
        with section 18, including disposition by transfer of 
        properties to resident-supported nonprofit entities;
            ``(iii) if determined to be appropriate by the 
        Secretary, may seek the establishment, as permitted by 
        applicable State and local law, of 1 or more new public 
        housing agencies;
            ``(iv) if determined to be appropriate by the 
        Secretary, may seek consolidation of all or part of the 
        agency (including all or part of any project or program 
        of the agency), as permitted by applicable State and 
        local laws, into other well-managed public housing 
        agencies with the consent of such well-managed 
        agencies; and
            ``(v) shall not be required to comply with any 
        State or local law relating to civil service 
        requirements, employee rights (except civil rights), 
        procurement, or financial or administrative controls 
        that, in the receiver's written determination (which 
        shall include the basis for such determination), 
        substantially impedes correction of the substantial 
        default.
    ``(D)(i) If, pursuant to subparagraph (A)(iv), the 
Secretary takes possession of all or part of the public housing 
agency, including all or part of any project or program of the 
agency, the Secretary--
            ``(I) may abrogate any contract to which the United 
        States or an agency of the United States is not a party 
        that, in the written determination of the Secretary 
        (which shall include the basis for such determination), 
        substantially impedes correction of the substantial 
        default, but only after the Secretary determines that 
        reasonable efforts to renegotiate such contract have 
        failed;
            ``(II) may demolish and dispose of all or part of 
        the assets of the public housing agency (including all 
        or part of any project of the agency) in accordance 
        with section 18, including disposition by transfer of 
        properties to resident-supported nonprofit entities;
            ``(III) may seek the establishment, as permitted by 
        applicable State and local law, of 1 or more new public 
        housing agencies;
            ``(IV) may seek consolidation of all or part of the 
        agency (including all or part of any project or program 
        of the agency), as permitted by applicable State and 
        local laws, into other well-managed public housing 
        agencies with the consent of such well-managed 
        agencies;
            ``(V) shall not be required to comply with any 
        State or local law relating to civil service 
        requirements, employee rights (except civil rights), 
        procurement, or financial or administrative controls 
        that, in the Secretary's written determination (which 
        shall include the basis for such determination), 
        substantially impedes correction of the substantial 
        default; and
            ``(VI) shall, without any action by a district 
        court of the United States, have such additional 
        authority as a district court of the United States 
        would have the authority to confer upon a receiver to 
        achieve the purposes of the receivership.
    ``(ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the 
Secretary appoints an administrative receiver to assume the 
responsibilities of the Secretary for the administration of all 
or part of the public housing agency (including all or part of 
any project or program of the agency), the Secretary may 
delegate to the administrative receiver any or all of the 
powers given the Secretary by this subparagraph, as the 
Secretary determines to be appropriate and subject to clause 
(iii).
    ``(iii) An administrative receiver may not take an action 
described in subclause (III) or (IV) of clause (i) unless the 
Secretary first approves an application by the administrative 
receiver to authorize such action.
    ``(E) The Secretary may make available to receivers and 
other entities selected or appointed pursuant to this paragraph 
such assistance as the Secretary determines in the discretion 
of the Secretary is necessary and available to remedy the 
substantial deterioration of living conditions in individual 
public housing projects or other related emergencies that 
endanger the health, safety, and welfare of public housing 
residents or families assisted under section 8. A decision made 
by the Secretary under this paragraph shall not be subject to 
review in any court of the United States, or in any court of 
any State, territory, or possession of the United States.
    ``(F) In any proceeding under subparagraph (A)(ii), upon a 
determination that a substantial default has occurred and 
without regard to the availability of alternative remedies, the 
court shall appoint a receiver to conduct the affairs of all or 
part of the public housing agency in a manner consistent with 
this Act and in accordance with such further terms and 
conditions as the court may provide. The receiver appointed may 
be another public housing agency, a private management 
corporation, or any other person or appropriate entity. The 
court shall have power to grant appropriate temporary or 
preliminary relief pending final disposition of the petition by 
the Secretary.
    ``(G) The appointment of a receiver pursuant to this 
paragraph may be terminated, upon the petition of any party, 
when the court determines that all defaults have been cured or 
the public housing agency is capable again of discharging its 
duties.
    ``(H) If the Secretary (or an administrative receiver 
appointed by the Secretary) takes possession of a public 
housing agency (including all or part of any project or program 
of the agency), or if a receiver is appointed by a court, the 
Secretary or receiver shall be deemed to be acting not in the 
official capacity of that person or entity, but rather in the 
capacity of the public housing agency, and any liability 
incurred, regardless of whether the incident giving rise to 
that liability occurred while the Secretary or receiver was in 
possession of all or part of the public housing agency 
(including all or part of any project or program of the 
agency), shall be the liability of the public housing 
agency.''.
    (b) Applicability.--The provisions of, and duties and 
authorities conferred or confirmed by, the amendments made by 
subsection (a) shall apply with respect to any action taken 
before, on, or after the effective date of this Act and shall 
apply to any receiver appointed for a public housing agency 
before the date of enactment of this Act.
    (c) Technical Correction Regarding Applicability to Section 
8.--Section 8(h) of the United States Housing Act of 1937 is 
amended by inserting ``(except as provided in section 
6(j)(3))'' after ``section 6''.
    (d) Implementation.--The Secretary may administer the 
amendments made by subsection (a) as necessary to ensure the 
efficient and effective initial implementation of this section.
    (e) Applicability.--This section shall take effect on, and 
the amendments made by this section are made on, and shall 
apply beginning upon, the date of the enactment of this Act.

SEC. 566. AUDITS.

    Section 5 of the United States Housing Act of 1937 (42 
U.S.C. 1437d), as amended by the preceding provisions of this 
Act, is further amended by inserting after subsection (g) the 
following new subsection:
    ``(h) Audits.--
            ``(1) By secretary and comptroller general.--Each 
        contract for contributions for any assistance under 
        this Act to a public housing agency shall provide that 
        the Secretary, the Inspector General of the Department 
        of Housing and Urban Development, and the Comptroller 
        General of the United States, or any of their duly 
        authorized representatives, shall, for the purpose of 
        audit and examination, have access to any books, 
        documents, papers, and records of the public housing 
        agency that are pertinent to this Act and to its 
        operations with respect to financial assistance under 
        the this Act.
            ``(2) Withholding of amounts for audits under 
        single audit act.--The Secretary may, in the sole 
        discretion of the Secretary, arrange for and pay the 
        costs of an audit required under chapter 75 of title 
        31, United States Code. In such circumstances, the 
        Secretary may withhold, from assistance otherwise 
        payable to the agency under this Act, amounts 
        sufficient to pay for the reasonable costs of 
        conducting an acceptable audit, including, when 
        appropriate, the reasonable costs of accounting 
        services necessary to place the agency's books and 
        records in auditable condition. As agreed to by the 
        Secretary and the Inspector General, the Inspector 
        General may arrange for an audit under this 
        paragraph.''.

SEC. 567. ADVISORY COUNCIL FOR HOUSING AUTHORITY OF NEW ORLEANS.

    (a) Establishment.--The Secretary and the Housing Authority 
of New Orleans (in this section referred to as the ``Housing 
Authority'') shall, pursuant to the cooperative endeavor 
agreement in effect between the Secretary and the Housing 
Authority, establish an advisory council for the Housing 
Authority of New Orleans (in this section referred to as the 
``advisory council'') that complies with the requirements of 
this section.
    (b) Membership.--
            (1) In general.--The advisory council shall be 
        appointed by the Secretary, not later than 90 days 
        after the date of the enactment of this Act, and shall 
        be composed of the following members:
                    (A) The Inspector General of the Department 
                of Housing and Urban Development (or the 
                Inspector General's designee).
                    (B) Not more than 7 other members, who 
                shall be selected for appointment based on 
                their experience in successfully reforming 
                troubled public housing agencies or in 
                providing affordable housing in coordination 
                with State and local governments, the private 
                sector, affordable housing residents, or local 
                nonprofit organizations.
            (2) Prohibition on additional pay.--Members of the 
        advisory council shall serve without compensation, but 
        shall be reimbursed for travel, subsistence, and other 
        necessary expenses incurred in the performance of their 
        duties as members of the Board using amounts made 
        available for technical assistance under section 9(h) 
        of the United States Housing Act of 1937 (as amended by 
        this Act).
    (c) Functions.--The advisory council shall--
            (1) establish standards and guidelines for 
        assessing the performance of the Housing Authority in 
        carrying out operational, asset management, and 
        financial functions for purposes of the reports and 
        finding under subsections (d) and (e), respectively;
            (2) provide advice, expertise, and recommendations 
        to the Housing Authority regarding the management, 
        operation, repair, redevelopment, revitalization, 
        demolition, and disposition of public housing projects 
        of the Housing Authority;
            (3) report to the Congress under subsection (d) 
        regarding any progress of the Housing Authority in 
        improving the performance of its functions; and
            (4) make a final finding to the Congress under 
        subsection (e) regarding the future of the Housing 
        Authority.
    (d) Quarterly Reports.--The advisory council shall report 
to the Congress and the Secretary not less than every 3 months 
regarding the performance of the Housing Authority and any 
progress of the authority in improving its performance and 
carrying out its functions.
    (e) Final Finding.--Upon the expiration of the 18-month 
period that begins upon the appointment under subsection (b)(1) 
of all members of the advisory council, the advisory council 
shall make and submit to the Congress and the Secretary a 
finding of whether the Housing Authority has substantially 
improved its performance, the performance of its functions, and 
the overall condition of the Authority such that the Authority 
should be allowed to continue to operate as the manager of the 
public housing of the Authority. In making the finding under 
this subsection, the advisory council shall consider whether 
the Housing Authority has made sufficient progress in the 
demolition and revitalization of the Desire Homes project, the 
revitalization of the St. Thomas Homes project, the appropriate 
allocation of operating subsidy amounts, and the appropriate 
expending of modernization amounts.
    (f) Receivership.--If the advisory council finds under 
subsection (e) that the Housing Authority has not substantially 
improved its performance in a manner sufficient that the 
Authority should be allowed to continue to operate as the 
manager of the public housing of the Authority, the Secretary 
shall (notwithstanding the conditions required under section 
6(j)(3)(A) of the United States Housing Act of 1937 for action 
under such section) petition under clause (ii) of section 
6(j)(3)(A) for the appointment of a receiver for the Housing 
Authority, which receivership shall be subject to the 
provisions of such section.
    (g) Regular Remedies.--Nothing in this section, or in the 
cooperative endeavor agreement in effect between the Secretary 
and the Housing Authority, may be construed to prevent the 
Secretary from taking any action with respect to the Housing 
Authority, in accordance with such section 6(j)(3) of the 
United States Housing Act of 1937 (42 U.S.C. 1437d(j)(3)), as 
amended by this Act, that is authorized under section.
    (f) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 568. TREATMENT OF TROUBLED PHA'S.

    Section 105 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12705) is amended by adding at the end 
the following new subsection:
    ``(g) Treatment of Troubled Public Housing Agencies.--
            ``(1) Effect of troubled status on chas.--The 
        comprehensive housing affordability strategy (or any 
        consolidated plan incorporating such strategy) for the 
        State or unit of general local government in which any 
        troubled public housing agency is located shall not be 
        considered to comply with the requirements under this 
        section unless such plan includes a description of the 
        manner in which the State or unit will provide 
        financial or other assistance to such troubled agency 
        in improving its operations to remove such designation.
            ``(2) Definition.--For purposes of this subsection, 
        the term `troubled public housing agency' means a 
        public housing agency that, upon the effective date of 
        the Quality Housing and Work Responsibility Act of 
        1998, is designated under section 6(j)(2) of the United 
        States Housing Act of 1937 as a troubled public housing 
        agency.''.

     Subtitle F--Safety and Security in Public and Assisted Housing

SEC. 575. PROVISIONS APPLICABLE ONLY TO PUBLIC HOUSING AND SECTION 8 
                    ASSISTANCE.

    (a) Drug-Related and Criminal Activity Under Public Housing 
Grievance Procedure.--Section 6(k) of the United States Housing 
Act of 1937 (42 U.S.C. 1437d(k)) is amended, in the matter 
following paragraph (6)--
            (1) by inserting ``violent or'' before ``drug-
        related''; and
            (2) by inserting ``or any activity resulting in a 
        felony conviction,'' after ``on or off such 
        premises,''.
    (b) Termination of Tenancy in Public Housing.--Section 6(l) 
of the United States Housing Act of 1937 (42 U.S.C. 1437d(l)) 
is amended--
            (1) in paragraph (4) (as so redesignated by the 
        preceding provisions of this Act)--
                    (A) by striking subparagraph (A) and 
                inserting the following new subparagraph:
                    ``(A) a reasonable period of time, but not 
                to exceed 30 days--
                            ``(i) if the health or safety of 
                        other tenants, public housing agency 
                        employees, or persons residing in the 
                        immediate vicinity of the premises is 
                        threatened; or
                            ``(ii) in the event of any drug-
                        related or violent criminal activity or 
                        any felony conviction;''; and
                    (B) in subparagraph (C), by inserting 
                before the semicolon at the end the following: 
                ``, except that if a State or local law 
                provides for a shorter period of time, such 
                shorter period shall apply'';
            (2) in paragraph (7) (as so redesignated by the 
        preceding provisions of this Act), by striking ``and'' 
        at the end;
            (4) by inserting after paragraph (7) (as so 
        redesignated by the preceding provisions of this Act), 
        the following new paragraph:
            ``(7) provide that any occupancy in violation of 
        section 576(b) of the Quality Housing and Work 
        Responsibility Act of 1998 (relating to ineligibility 
        of illegal drug users and alcohol abusers) or the 
        furnishing of any false or misleading information 
        pursuant to section 577 of such Act (relating to 
        termination of tenancy and assistance for illegal drug 
        users and alcohol abusers) shall be cause for 
        termination of tenancy;''.
    (c) Availability of Criminal Records for Tenant Screening 
and Eviction.--Section 6(q) of the United States Housing Act of 
1937 (42 U.S.C. 1437d(q)(1)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``subparagraph 
                        (B)'' and inserting ``subparagraph 
                        (C)''; and
                            (ii) by striking ``public housing'' 
                        and inserting ``covered housing 
                        assistance'';
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) Requests by owners of project-based 
                section 8 housing.--A public housing agency may 
                make a request under subparagraph (A) for 
                information regarding applicants for, or 
                tenants of, housing that is provided project-
                based assistance under section 8 only if the 
                housing is located within the jurisdiction of 
                the agency and the owner of such housing has 
                requested that the agency obtain such 
                information on behalf of the owner. Upon such a 
                request by the owner, the agency shall make a 
                request under subparagraph (A) for the 
                information. The agency may not make such 
                information available to the owner but shall 
                perform determinations for the owner regarding 
                screening, lease enforcement, and eviction 
                based on criteria supplied by the owner.'';
            (2) in paragraph (3)--
                    (A) by striking ``Fee'' and inserting 
                ``Fees''; and
                    (B) by adding at the end the following new 
                sentence: ``In the case of a public housing 
                agency obtaining information pursuant to 
                paragraph (1)(B) for another owner of housing, 
                the agency may pass such fee on to the owner 
                initiating the request and may charge 
                additional reasonable fees for making the 
                request on behalf of the owner and taking other 
                actions for owners under this subsection.'';
            (3) by striking paragraph (5) and inserting the 
        following new paragraph:
            ``(8) Definitions.--For purposes of this 
        subsection, the following definitions shall apply:
                    ``(A) Adult.--The term `adult' means a 
                person who is 18 years of age or older, or who 
                has been convicted of a crime as an adult under 
                any Federal, State, or tribal law.
                    ``(B) Covered housing assistance.--The term 
                `covered housing assistance' means--
                            ``(i) a dwelling unit in public 
                        housing;
                            ``(ii) a dwelling unit in housing 
                        that is provided project-based 
                        assistance under section 8, including 
                        new construction and substantial 
                        rehabilitation projects; and
                            ``(iii) tenant-based assistance 
                        under section 8.
                    ``(C) Owner.--The term `owner' means, with 
                respect to covered housing assistance described 
                in subparagraph (B)(ii), the entity or private 
                person (including a cooperative or public 
                housing agency) that has the legal right to 
                lease or sublease dwelling units in the housing 
                assisted.''; and
            (4) by inserting after paragraph (4) the following 
        new paragraphs:
            ``(5) Confidentiality.--A public housing agency 
        receiving information under this subsection may use 
        such information only for the purposes provided in this 
        subsection and such information may not be disclosed to 
        any person who is not an officer, employee, or 
        authorized representative of the agency and who has a 
        job-related need to have access to the information in 
        connection with admission of applicants, eviction of 
        tenants, or termination of assistance. For judicial 
        eviction proceedings, disclosures may be made to the 
        extent necessary. The Secretary shall, by regulation, 
        establish procedures necessary to ensure that 
        information provided under this subsection to a public 
        housing agency is used, and confidentiality of such 
        information is maintained, as required under this 
        subsection. The Secretary shall establish standards for 
        confidentiality of information obtained under this 
        subsection by public housing agencies on behalf of 
        owners.
            ``(6) Penalty.--Any person who knowingly and 
        willfully requests or obtains any information 
        concerning an applicant for, or tenant of, covered 
        housing assistance pursuant to the authority under this 
        subsection under false pretenses, or any person who 
        knowingly and willfully discloses any such information 
        in any manner to any individual not entitled under any 
        law to receive it, shall be guilty of a misdemeanor and 
        fined not more than $5,000. The term `person' as used 
        in this paragraph include an officer, employee, or 
        authorized representative of any public housing agency.
            ``(7) Civil action.--Any applicant for, or tenant 
        of, covered housing assistance affected by (A) a 
        negligent or knowing disclosure of information referred 
        to in this subsection about such person by an officer, 
        employee, or authorized representative of any public 
        housing agency, which disclosure is not authorized by 
        this subsection, or (B) any other negligent or knowing 
        action that is inconsistent with this subsection, may 
        bring a civil action for damages and such other relief 
        as may be appropriate against any public housing agency 
        responsible for such unauthorized action. The district 
        court of the United States in the district in which the 
        affected applicant or tenant resides, in which such 
        unauthorized action occurred, or in which the officer, 
        employee, or representative alleged to be responsible 
        for any such unauthorized action resides, shall have 
        jurisdiction in such matters. Appropriate relief that 
        may be ordered by such district courts shall include 
        reasonable attorney's fees and other litigation 
        costs.''.
    (d) Authority To Require Access to Criminal Records.--
Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d), as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new 
subsection:
    ``(t) Authority To Require Access to Criminal Records.--A 
public housing agency may require, as a condition of providing 
admission to the public housing program or assisted housing 
program under the jurisdiction of the public housing agency, 
that each adult member of the household provide a signed, 
written authorization for the public housing agency to obtain 
records described in subsection (q)(1) regarding such member of 
the household from the National Crime Information Center, 
police departments, and other law enforcement agencies.''.
    (e) Obtaining Information From Drug Abuse Treatment 
Facilities.--Section 6 of the United States Housing Act of 1937 
(42 U.S.C. 1437d), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following 
new subsection:
    ``(u) Obtaining Information From Drug Abuse Treatment 
Facilities.--
            ``(1) Authority.--Notwithstanding any other 
        provision of law other than the Public Health Service 
        Act (42 U.S.C. 201 et seq.), a public housing agency 
        may require each person who applies for admission to 
        public housing to sign one or more forms of written 
        consent authorizing the agency to receive information 
        from a drug abuse treatment facility that is solely 
        related to whether the applicant is currently engaging 
        in the illegal use of a controlled substance.
            ``(2) Confidentiality of applicant's records.--
                    ``(A) Limitation on information 
                requested.--In a form of written consent, a 
                public housing agency may request only whether 
                the drug abuse treatment facility has 
                reasonable cause to believe that the applicant 
                is currently engaging in the illegal use of a 
                controlled substance.
                    ``(B) Records management.--Each public 
                housing agency that receives information under 
                this subsection from a drug abuse treatment 
                facility shall establish and implement a system 
                of records management that ensures that any 
                information received by the public housing 
                agency under this subsection--
                            ``(i) is maintained confidentially 
                        in accordance with section 543 of the 
                        Public Health Service Act (12 U.S.C. 
                        290dd-2);
                            ``(ii) is not misused or improperly 
                        disseminated; and
                            ``(iii) is destroyed, as 
                        applicable--
                                    ``(I) not later than 5 
                                business days after the date on 
                                which the public housing agency 
                                gives final approval for an 
                                application for admission; or
                                    ``(II) if the public 
                                housing agency denies the 
                                application for admission, in a 
                                timely manner after the date on 
                                which the statute of 
                                limitations for the 
                                commencement of a civil action 
                                from the applicant based upon 
                                that denial of admission has 
                                expired.
                    ``(C) Expiration of written consent.--In 
                addition to the requirements of subparagraph 
                (B), an applicant's signed written consent 
                shall expire automatically after the public 
                housing agency has made a final decision to 
                either approve or deny the applicant's 
                application for admittance to public housing.
            ``(3) Prohibition of discriminatory treatment of 
        applicants.--
                    ``(A) Forms signed.--A public housing 
                agency may only require an applicant for 
                admission to public housing to sign one or more 
                forms of written consent under this subsection 
                if the public housing agency requires all such 
                applicants to sign the same form or forms of 
                written consent.
                    ``(B) Circumstances of inquiry.--A public 
                housing agency may only make an inquiry to a 
                drug abuse treatment facility under this 
                subsection if--
                            ``(i) the public housing agency 
                        makes the same inquiry with respect to 
                        all applicants; or
                            ``(ii) the public housing agency 
                        only makes the same inquiry with 
                        respect to each and every applicant 
                        with respect to whom--
                                    ``(I) the public housing 
                                agency receives information 
                                from the criminal record of the 
                                applicant that indicates 
                                evidence of a prior arrest or 
                                conviction; or
                                    ``(II) the public housing 
                                agency receives information 
                                from the records of prior 
                                tenancy of the applicant that 
                                demonstrates that the 
                                applicant--
                                            ``(aa) engaged in 
                                        the destruction of 
                                        property;
                                            ``(bb) engaged in 
                                        violent activity 
                                        against another person; 
                                        or
                                            ``(cc) interfered 
                                        with the right of 
                                        peaceful enjoyment of 
                                        the premises of another 
                                        tenant.
            ``(4) Fee permitted.--A drug abuse treatment 
        facility may charge a public housing agency a 
        reasonable fee for information provided under this 
        subsection.
            ``(5) Disclosure permitted by treatment 
        facilities.--A drug abuse treatment facility shall not 
        be liable for damages based on any information required 
        to be disclosed pursuant to this subsection if such 
        disclosure is consistent with section 543 of the Public 
        Health Service Act (42 U.S.C. 290dd-2).
            ``(6) Option to not request information.--A public 
        housing agency shall not be liable for damages based on 
        its decision not to require each person who applies for 
        admission to public housing to sign one or more forms 
        of written consent authorizing the public housing 
        agency to receive information from a drug abuse 
        treatment facility under this subsection.
            ``(7) Definitions.--For purposes of this 
        subsection, the following definitions shall apply:
                    ``(A) Drug abuse treatment facility.--The 
                term `drug abuse treatment facility' means an 
                entity that--
                            ``(i) is--
                                    ``(I) an identified unit 
                                within a general medical care 
                                facility; or
                                    ``(II) an entity other than 
                                a general medical care 
                                facility; and
                            ``(ii) holds itself out as 
                        providing, and provides, diagnosis, 
                        treatment, or referral for treatment 
                        with respect to the illegal use of a 
                        controlled substance.
                    ``(B) Controlled substance.--The term 
                `controlled substance' has the meaning given 
                the term in section 102 of the Controlled 
                Substances Act (21 U.S.C. 802).
                    ``(C) Currently engaging in the illegal use 
                of a controlled substance.--The term `currently 
                engaging in the illegal use of a controlled 
                substance' means the illegal use of a 
                controlled substance that occurred recently 
                enough to justify a reasonable belief that an 
                applicant's illegal use of a controlled 
                substance is current or that continuing illegal 
                use of a controlled substance by the applicant 
                is a real and ongoing problem.
            ``(8) Effective date.--This subsection shall take 
        effect upon enactment and without the necessity of 
        guidance from, or any regulation issued by, the 
        Secretary.''.

SEC. 576. SCREENING OF APPLICANTS FOR FEDERALLY ASSISTED HOUSING.

    (a) Ineligibility Because of Eviction for Drug Crimes.--Any 
tenant evicted from federally assisted housing by reason of 
drug-related criminal activity (as such term is defined in 
section 3(b) of the United States Housing Act of 1937 (42 
U.S.C. 1437a(b)) shall not be eligible for federally assisted 
housing during the 3-year period beginning on the date of such 
eviction, unless the evicted tenant successfully completes a 
rehabilitation program approved by the public housing agency 
(which shall include a waiver of this subsection if the 
circumstances leading to eviction no longer exist).
    (b) Ineligibility of Illegal Drug Users and Alcohol 
Abusers.--
            (1) In general.--Notwithstanding any other 
        provision of law, a public housing agency or an owner 
        of federally assisted housing, as determined by the 
        Secretary, shall establish standards that prohibit 
        admission to the program or admission to federally 
        assisted housing for any household with a member--
                    (A) who the public housing agency or owner 
                determines is illegally using a controlled 
                substance; or
                    (B) with respect to whom the public housing 
                agency or owner determines that it has 
                reasonable cause to believe that such household 
                member's illegal use (or pattern of illegal 
                use) of a controlled substance, or abuse (or 
                pattern of abuse) of alcohol, 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)(B), to 
        deny admission to the program or federally assisted 
        housing to any household based on a pattern of illegal 
        use of a controlled substance or a pattern of abuse of 
        alcohol by a household member, a public housing agency 
        or an owner may consider whether such household 
        member--
                    (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 abuse 
                of alcohol (as applicable);
                    (B) has otherwise been rehabilitated 
                successfully and is no longer engaging in the 
                illegal use of a controlled substance or abuse 
                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 abuse 
                of alcohol (as applicable).
    (c) Authority To Deny Admission To Criminal Offenders.--
Except as provided in subsections (a) and (b) of this section 
and in addition to any other authority to screen applicants, in 
selecting among applicants for admission to the program or to 
federally assisted housing, if the public housing agency or 
owner of such housing (as applicable) determines that an 
applicant or any member of the applicant's household is or was, 
during a reasonable time preceding the date when the applicant 
household would otherwise be selected for admission, engaged in 
any drug-related or violent criminal activity or other criminal 
activity which would adversely affect the health, safety, or 
right to peaceful enjoyment of the premises by other residents, 
the owner, or public housing agency employees, the public 
housing agency or owner may--
            (1) deny such applicant admission to the program or 
        to federally assisted housing; and
            (2) after the expiration of the reasonable period 
        beginning upon such activity, require the applicant, as 
        a condition of admission to the program or to federally 
        assisted housing, to submit to the public housing 
        agency or owner evidence sufficient (as the Secretary 
        shall by regulation provide) to ensure that the 
        individual or individuals in the applicant's household 
        who engaged in criminal activity for which denial was 
        made under paragraph (1) have not engaged in any 
        criminal activity during such reasonable period.
    (d) Conforming Amendments.--The United States Housing Act 
of 1937 is amended--
            (1) in section 6--
                    (A) by striking subsection (r); and
                    (B) by redesignating subsections (s), (t), 
                and (u) (as added by the preceding provisions 
                of this Act) as subsections (r), (s), and (t), 
                respectively; and
            (2) in section 16 (42 U.S.C. 1437n), by striking 
        subsection (e).

SEC. 577. TERMINATION OF TENANCY AND ASSISTANCE FOR ILLEGAL DRUG USERS 
                    AND ALCOHOL ABUSERS IN FEDERALLY ASSISTED HOUSING.

    (a) In General.--Notwithstanding any other provision of 
law, a public housing agency or an owner of federally assisted 
housing (as applicable), shall establish standards or lease 
provisions for continued assistance or occupancy in federally 
assisted housing that allow the agency or owner (as applicable) 
to terminate the tenancy or assistance for any household with a 
member--
            (1) who the public housing agency or owner 
        determines is illegally using a controlled substance; 
        or
            (2) whose illegal use (or pattern of illegal use) 
        of a controlled substance, or whose abuse (or pattern 
        of abuse) of alcohol, is determined by the public 
        housing agency or owner to interfere with the health, 
        safety, or right to peaceful enjoyment of the premises 
        by other residents.
    (b) Consideration of Rehabilitation.--In determining 
whether, pursuant to subsection (a)(2), to terminate tenancy or 
assistance to any household based on a pattern of illegal use 
of a controlled substance or a pattern of abuse of alcohol by a 
household member, a public housing agency or an owner may 
consider whether such household member--
            (1) 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 abuse of alcohol (as applicable);
            (2) has otherwise been rehabilitated successfully 
        and is no longer engaging in the illegal use of a 
        controlled substance or abuse of alcohol (as 
        applicable); or
            (3) 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 abuse of alcohol (as applicable).

SEC. 578. INELIGIBILITY OF DANGEROUS SEX OFFENDERS FOR ADMISSION TO 
                    PUBLIC HOUSING.

    (a) In General.--Notwithstanding any other provision of 
law, an owner of federally assisted housing shall prohibit 
admission to such housing for any household that includes any 
individual who is subject to a lifetime registration 
requirement under a State sex offender registration program.
    (b) Obtaining Information.--As provided in regulations 
issued by the Secretary to carry out this section--
            (1) a public housing agency shall carry out 
        criminal history background checks on applicants for 
        federally assisted housing and make further inquiry 
        with State and local agencies as necessary to determine 
        whether an applicant for federally assisted housing is 
        subject to a lifetime registration requirement under a 
        State sex offender registration program; and
            (2) State and local agencies responsible for the 
        collection or maintenance of criminal history record 
        information or information on persons required to 
        register as sex offenders shall comply with requests of 
        public housing agencies for information pursuant to 
        this section.
    (c) Requests by Owners for PHA's to Obtain Information.--A 
public housing agency may take any action under subsection (b) 
regarding applicants for, or tenants of, federally assisted 
housing other than federally assisted housing described in 
subparagraph (A) or (B) of section 579(a)(2), but only if the 
housing is located within the jurisdiction of the agency and 
the owner of such housing has requested that the agency take 
such action on behalf of the owner. Upon such a request by the 
owner, the agency shall take the action requested under 
subsection (b). The agency may not make any information 
obtained pursuant to the action under subsection (b) available 
to the owner but shall perform determinations for the owner 
regarding screening, lease enforcement, and eviction based on 
criteria supplied by the owner.
    (d) Opportunity To Dispute.--Before an adverse action is 
taken with respect to an applicant for federally assisted 
housing on the basis that an individual is subject to a 
lifetime registration requirement under a State sex offender 
registration program, the public housing agency obtaining the 
record shall provide the tenant or applicant with a copy of the 
registration information and an opportunity to dispute the 
accuracy and relevance of that information.
    (e) Fee.--A public housing agency may be charged a 
reasonable fee for taking actions under subsection (b). In the 
case of a public housing agency taking actions on behalf of 
another owner of federally assisted housing pursuant to 
subsection (c), the agency may pass such fee on to the owner 
making the request and may charge an additional reasonable fee 
for making the request on behalf of the owner.
    (f) Records Management.--Each public housing agency shall 
establish and implement a system of records management that 
ensures that any criminal record or information regarding a 
lifetime registration requirement under a State sex offender 
registration program that is obtained under this section by the 
public housing agency is--
            (1) maintained confidentially;
            (2) not misused or improperly disseminated; and
            (3) destroyed, once the purpose for which the 
        record was requested has been accomplished.

SEC. 579. DEFINITIONS.

    (a) Definitions.--For purposes of this subtitle, the 
following definitions shall apply:
            (1) Drug-related criminal activity.--The term 
        ``drug-related criminal activity'' has the meaning 
        given the term in section 3(b) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (2) Federally assisted housing.--The term 
        ``federally assisted housing'' means a dwelling unit--
                    (A) in public housing (as such term is 
                defined in section 3(b) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437a));
                    (B) assisted with tenant-based assistance 
                under section 8 of the United States Housing 
                Act of 1937;
                    (C) in housing that is provided project-
                based assistance under section 8 of the United 
                States Housing Act of 1937, including new 
                construction and substantial rehabilitation 
                projects;
                    (D) in housing that is assisted under 
                section 202 of the Housing Act of 1959 (as 
                amended by section 801 of the Cranston-Gonzalez 
                National Affordable Housing Act);
                    (E) in housing that is assisted under 
                section 202 of the Housing Act of 1959, as such 
                section existed before the enactment of the 
                Cranston-Gonzalez National Affordable Housing 
                Act;
                    (F) in housing that is assisted under 
                section 811 of the Cranston-Gonzalez National 
                Affordable Housing Act;
                    (G) in housing financed by a loan or 
                mortgage insured under section 221(d)(3) of the 
                National Housing Act that bears interest at a 
                rate determined under the proviso of section 
                221(d)(5) of such Act;
                    (H) in housing insured, assisted, or held 
                by the Secretary or a State or State agency 
                under section 236 of the National Housing Act; 
                or
                    (I) in housing assisted under section 514 
                or 515 of the Housing Act of 1949.
            (3) Owner.--The term ``owner'' means, with respect 
        to federally assisted housing, the entity or private 
        person (including a cooperative or public housing 
        agency) that has the legal right to lease or sublease 
        dwelling units in such housing.

               Subtitle G--Repeals and Related Provisions

SEC. 581. ANNUAL REPORT.

    (a) In General.--Not later than 1 year after the date of 
the enactment of this Act, and annually thereafter, the 
Secretary shall submit a report to the Congress on--
            (1) the impact of the amendments made by this Act 
        on--
                    (A) the demographics of public housing 
                residents and families receiving tenant-based 
                assistance under the United States Housing Act 
                of 1937; and
                    (B) the economic viability of public 
                housing agencies; and
            (2) the effectiveness of the rent policies 
        established by this Act and the amendments made by this 
        Act on the employment status and earned income of 
        public housing residents.
    (b) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 582. REPEALS RELATING TO PUBLIC HOUSING AND SECTION 8 PROGRAMS.

    (a) In General.--The following provisions of law are hereby 
repealed:
            (1) Public housing rent waivers for police.--
        Section 519 of the Cranston-Gonzalez National 
        Affordable Housing Act (42 U.S.C. 1437a-1).
            (2) Treatment of certificate and voucher holders.--
        Subsection (c) of section 183 of the Housing and 
        Community Development Act of 1987 (42 U.S.C. 1437f 
        note).
            (3) Report regarding fair housing objectives.--
        Section 153 of the Housing and Community Development 
        Act of 1992 (42 U.S.C. 1437f note).
            (4) Miscellaneous provisions.--Subsections (b)(1) 
        and (c) of section 326 of the Housing and Community 
        Development Amendments of 1981 (Public Law 97-35, 95 
        Stat. 406; 42 U.S.C. 1437f note).
            (5) Payment for development managers.--Section 329A 
        of the Housing and Community Development Amendments of 
        1981 (42 U.S.C. 1437j-1).
            (6) Public housing childhood development.--Section 
        222 of the Housing and Urban-Rural Recovery Act of 1983 
        (12 U.S.C. 1701z-6 note).
            (7) Indian housing childhood development.--Section 
        518 of the Cranston-Gonzalez National Affordable 
        Housing Act (12 U.S.C. 1701z-6 note).
            (8) Public housing comprehensive transition 
        demonstration.--Section 126 of the Housing and 
        Community Development Act of 1987 (42 U.S.C. 1437f 
        note).
            (9) Public housing one-stop perinatal services 
        demonstration.--Section 521 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 1437t note).
            (10) Public housing mincs demonstration.--Section 
        522 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 1437f note).
            (11) Public housing energy efficiency 
        demonstration.--Section 523 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 1437g note).
            (12) Omaha homeownership demonstration.--Section 
        132 of the Housing and Community Development Act of 
        1992 (Public Law 102-550; 106 Stat. 3712).
            (13) Public and assisted housing youth sports 
        programs.--Section 520 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 11903a).
            (14) Multifamily financing.--The penultimate 
        sentence of section 302(b)(2) of the National Housing 
        Act (12 U.S.C. 1717(b)(2)) and the penultimate sentence 
        of section 305(a)(2) of the Emergency Home Finance Act 
        of 1970 (12 U.S.C. 1454(a)(2)).
            (15) Special projects for elderly or handicapped 
        families.--Section 209 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 1438).
    (b) Savings Provision.--Except to the extent otherwise 
provided in this Act, the repeals made by subsection (a) shall 
not affect any legally binding obligations entered into before 
the effective date under section 503(a) of this Act.

SEC. 583. PUBLIC HOUSING FLEXIBILITY IN CHAS.

    Section 105(b) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12705(b)) is amended--
            (1) by transferring and inserting the flush 
        material that precedes the first paragraph that is 
        designated as (17) (relating to abbreviated housing 
        strategies and consisting of 2 sentences) to the end of 
        the subsection (following the last numbered paragraph);
            (2) by redesignating the second paragraph that is 
        designated as paragraph (17) (as added by section 
        681(2) of the Housing and Community Development Act of 
        1992 (Public Law 102-550; 106 Stat. 3830)) as paragraph 
        (20);
            (3) by redesignating paragraph (17) (as added by 
        section 220(b)(3) of the Housing and Community 
        Development Act of 1992 (Public Law 102-550; 106 Stat. 
        3761)) as paragraph (19);
            (4) in the second paragraph designated as paragraph 
        (16) (as so designated by section 220(c)(1) of the 
        Housing and Community Development Act of 1992 (Public 
        Law 102-550; 106 Stat. 3762))--
                    (A) by striking ``and'' at the end; and
                    (B) by striking ``(16)'' and inserting 
                ``(18)'';
            (5) in paragraph (16) (as added by section 1014(3) 
        of the Housing and Community Development Act of 1992 
        (Public Law 102-550; 106 Stat. 3908))--
                    (A) by striking the period at the end and 
                inserting a semicolon; and
                    (B) by striking ``(16)'' and inserting 
                ``(17)'';
            (6) by redesignating paragraphs (11) through (15) 
        as paragraphs (12) through (16), respectively; and
            (7) by inserting after paragraph (10) the following 
        new paragraph:
            ``(11) describe the manner in which the plan of the 
        jurisdiction will help address the needs of public 
        housing;''.

SEC. 584. USE OF AMERICAN PRODUCTS.

    (a) Purchase of American-Made Equipment and Products.--It 
is the sense of the Congress that, to the greatest extent 
practicable, all equipment and products purchased with funds 
made available in this Act should be American made.
    (b) Notice Requirement.--In providing financial assistance 
to, or entering into any contract with, any entity using funds 
made available in this Act, the head of each Federal agency, to 
the greatest extent practicable, shall provide to such entity a 
notice describing the statement made in subsection (a) by the 
Congress.
    (c) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 585. GAO STUDY ON HOUSING ASSISTANCE PROGRAM COSTS.

    (a) Study.--The Comptroller General of the United States 
shall conduct a study that provides an objective and 
independent accounting and analysis of the full cost to the 
Federal Government, public housing agencies, State and local 
governments, and other entities, per assisted household, of the 
Federal assisted housing programs, taking into account the 
qualitative differences among Federal assisted housing programs 
in accordance with applicable standards of the Department of 
Housing and Urban Development.
    (b) Contents.--The study under this section shall--
            (1) analyze the full cost to the Federal 
        Government, public housing agencies, State and local 
        governments, and other parties, per assisted household, 
        of the Federal assisted housing programs, in accordance 
        with generally accepted accounting principles, and 
        shall conduct the analysis on a nationwide and regional 
        basis and in a manner such that accurate per unit cost 
        comparisons may be made between Federal assisted 
        housing programs, including grants, direct subsidies, 
        tax concessions, Federal mortgage insurance liability, 
        periodic renovation and rehabilitation, and 
        modernization costs, demolition costs, and other 
        ancillary costs such as security; and
            (2) measure and evaluate qualitative differences 
        among Federal assisted housing programs in accordance 
        with applicable standards of the Department of Housing 
        and Urban Development.
    (c) Prohibition of Recommendations.--In conducting the 
study under this section and reporting under subsection (e), 
the Comptroller General may not make any recommendations 
regarding Federal housing policy.
    (d) Federal Assisted Housing Programs.--For purposes of 
this section, the term ``Federal assisted housing programs'' 
means--
            (1) the public housing program under the United 
        States Housing Act of 1937, except that the study under 
        this section shall differentiate between and compare 
        the development and construction of new public housing 
        and the assistance of existing public housing 
        structures;
            (2) the certificate program for rental assistance 
        under section 8(b)(1) of the United States Housing Act 
        of 1937;
            (3) the voucher program for rental assistance under 
        section 8(o) of the United States Housing Act of 1937;
            (4) the programs for project-based assistance under 
        section 8 of the United States Housing Act of 1937;
            (5) the rental assistance payments program under 
        section 521(a)(2)(A) of the Housing Act of 1949;
            (6) the program for housing for the elderly under 
        section 202 of the Housing Act of 1959;
            (7) the program for housing for persons with 
        disabilities under section 811 of the Cranston-Gonzalez 
        National Affordable Housing Act;
            (8) the program for financing housing by a loan or 
        mortgage insured under section 221(d)(3) of the 
        National Housing Act that bears interest at a rate 
        determined under the proviso of section 221(d)(5) of 
        such Act;
            (9) the program under section 236 of the National 
        Housing Act;
            (10) the program for construction or substantial 
        rehabilitation under section 8(b)(2) of the United 
        States Housing Act of 1937, as in effect before October 
        1, 1983; and
            (11) any other program for housing assistance 
        administered by the Secretary of Housing and Urban 
        Development or the Secretary of Agriculture, under 
        which occupancy in the housing assisted or housing 
        assistance provided is based on income, as the 
        Comptroller General may determine.
    (e) Report.--Not later than 12 months after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Congress a final report which shall contain the results of 
the study under this section, including the analysis and 
estimates required under subsection (b).
    (f) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 586. AMENDMENTS TO PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION 
                    ACT OF 1990.

    (a) Short Title.--This section may be cited as the ``Public 
and Assisted Housing Drug Elimination Program Amendments of 
1998''.
    (b) Findings.--Section 5122 of the Anti-Drug Abuse Act of 
1988 (42 U.S.C. 11901) is amended--
            (1) in paragraph (2), by inserting ``or violent'' 
        after ``drug-related'';
            (2) in paragraph (4)--
                    (A) by inserting ``and violent'' after 
                ``drug-related''; and
                    (B) by striking ``and'' at the end;
            (3) in paragraph (5), by striking the period at the 
        end and inserting a semicolon; and
            (4) by adding at the end the following new 
        paragraphs:
            ``(6) the Federal Government should provide support 
        for effective safety and security measures to combat 
        drug-related and violent crime, primarily in and around 
        public housing projects with severe crime problems;
            ``(7) closer cooperation should be encouraged 
        between public and assisted housing managers, local law 
        enforcement agencies, and residents in developing and 
        implementing anti-crime programs; and
            ``(8) anti-crime strategies should be improved 
        through the expansion of community-oriented policing 
        initiatives.''.
    (c) Authority to Make Grants.--Section 5123 of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11902) is amended--
            (1) by inserting ``(a) In General.--'' before 
        ``The'';
            (2) by striking ``tribally designated housing 
        entities'' and inserting ``recipients of assistance 
        under the Native American Housing Assistance and Self-
        Determination Act of 1996'';
            (3) by inserting ``and violent'' after ``drug-
        related''; and
            (4) by adding at the end the following new 
        subsection:
    ``(b) Consortia.--Subject to terms and conditions 
established by the Secretary, public housing agencies may form 
consortia for purposes of applying for grants under this 
chapter.''.
    (d) Eligible Activities.--Section 5124 of the Anti-Drug 
Abuse Act of 1988 (42 U.S.C. 11903) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4)(A), by striking 
                ``drug-related crime on or about'' and 
                inserting ``drug-related or violent crime in 
                and around'';
                    (B) in paragraph (6), by striking ``and'' 
                at the end;
                    (C) in paragraph (7)--
                            (i) by striking ``tribally 
                        designated housing entity'' and 
                        inserting ``recipient of assistance 
                        under the Native American Housing 
                        Assistance and Self-Determination Act 
                        of 1996''; and
                            (ii) by striking the period at the 
                        end and inserting ``; and''; and
                    (8) by adding at the end the following new 
                paragraph:
            ``(8) sports programs and sports activities that 
        serve primarily youths from public or other federally 
        assisted low-income housing projects and are operated 
        in conjunction with, or in furtherance of, an organized 
        program or plan designed to reduce or eliminate drugs 
        and drug-related problems in and around such 
        projects.''; and
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), 
                by striking ``drug-related crime in'' and 
                inserting ``drug-related crime in and around''; 
                and
                    (B) in paragraph (2), by striking ``drug-
                related activity at'' and inserting ``drug-
                related or violent activity in or around''.
    (e) Applications.--Section 5125 of the Anti-Drug Abuse Act 
of 1988 (42 U.S.C. 11904) is amended--
            (1) in subsection (a)--
                    (A) by striking ``tribally designated 
                housing entity'' and inserting ``recipient of 
                assistance under the Native American Housing 
                Assistance and Self-Determination Act of 
                1996'';
                    (B) by striking ``crime on the premises'' 
                and inserting ``or violent crime in and 
                around''; and
                    (C) by inserting before the period at the 
                end the following: ``, which plan shall be 
                coordinated with and may be included in the 
                public housing agency plan submitted to the 
                Secretary pursuant to section 5A of the United 
                States Housing Act of 1937'';
            (2) in subsection (b)--
                    (A) in the matter that precedes paragraph 
                (1), by striking ``Except as'' and all that 
                follows through ``on--'' and inserting the 
                following: ``The Secretary shall approve 
                applications under subsection (b) that are not 
                subject to a preference under subsection 
                (b)(2)(A) on the basis of thresholds or 
                criteria such as--''; and
                    (B) in paragraph (1), by striking ``crime 
                problem in'' and inserting ``or violent crime 
                problem in and around'';
            (3) in subsection (c)--
                    (A) in the matter preceding paragraph (1), 
                by striking ``subsection (b)'' and inserting 
                ``subsection (c)''; and
                    (B) in paragraph (2), by inserting ``or 
                violent'' after ``drug-related'' each place it 
                appears;
            (4) in subsection (d), by striking ``subsection 
        (b)'' and inserting ``subsection (c)'';
            (5) by redesignating subsections (b) through (d) as 
        subsections (c) through (e), respectively; and
            (6) by inserting after subsection (a) the following 
        new subsection:
    ``(b) 1-Year Renewable Grants.--
            ``(1) In general.--An eligible applicant that is a 
        public housing agency may apply for a 1-year grant 
        under this chapter that, subject to the availability of 
        appropriated amounts, shall be renewed annually for a 
        period of not more than 4 additional years, except that 
        such renewal shall be contingent upon the Secretary 
        finding, upon an annual or more frequent review, that 
        the grantee agency is performing under the terms of the 
        grant and applicable laws in a satisfactory manner and 
        meets such other requirements as the Secretary may 
        prescribe. The Secretary may adjust the amount of any 
        grant received or renewed under this paragraph to take 
        into account increases or decreases in amounts 
        appropriated for these purposes or such other factors 
        as the Secretary determines to be appropriate.
            ``(2) Eligibility and preference.--The Secretary 
        may not provide assistance under this chapter to an 
        applicant that is a public housing agency unless--
                    ``(A) the agency will use the grants to 
                continue or expand activities eligible for 
                assistance under this chapter, as in effect 
                immediately before the effective date under 
                section 503(a) of the Quality Housing and Work 
                Responsibility Act of 1998, in which case the 
                Secretary shall provide preference to such 
                applicant; except that preference under this 
                subparagraph shall not preclude selection by 
                the Secretary of other meritorious applications 
                that address urgent or serious crime problems 
                nor be construed to require continuation of 
                activities determined by the Secretary to be 
                unworthy of continuation; or
                    ``(B) the agency is in the class 
                established under paragraph (3).
            ``(3) Pha's having urgent or serious crime 
        problems.--The Secretary shall, by regulations issued 
        after notice and opportunity for public comment, set 
        forth criteria for establishing a class of public 
        housing agencies that have urgent or serious crime 
        problems. The Secretary may reserve a portion of the 
        amount appropriated to carry out this chapter in each 
        fiscal year only for grants for public housing agencies 
        in such class, except that any amounts from such 
        portion reserved that are not obligated to agencies in 
        the class shall be made available only for agencies 
        that are subject to a preference under paragraph 
        (2)(A).
            ``(4) Inapplicability to federally assisted low-
        income housing.--The provisions of this subsection 
        shall not apply to federally assisted low-income 
        housing.''.
    (f) Definitions.--Section 5126 of the Anti-Drug Abuse Act 
of 1988 (42 U.S.C. 11905) is amended by striking paragraph (5) 
and inserting the following new paragraph:
            ``(5) Recipient.--The term `recipient', when used 
        in reference to the Native American Housing Assistance 
        and Self-Determination Act of 1996, has the meaning 
        given such term in section 4 of such Act.''.
    (g) Reports, Monitoring, and Funding.--Chapter 2 of 
subtitle C of title V of the Anti-Drug Abuse Act of 1988 is 
amended by striking sections 5127, 5128, 5129, and 5130 and 
inserting the following new sections:

``SEC. 5127. REPORTS.

    ``(a) Grantee Reports.--The Secretary shall require 
grantees under this chapter to provide periodic reports that 
include the obligation and expenditure of grant funds, the 
progress made by the grantee in implementing the plan described 
in section 5125(a), and any change in the incidence of drug-
related crime in projects assisted under this chapter.
    ``(b) HUD Reports.--The Secretary shall submit a report to 
the Congress not later than 18 months after the date of the 
enactment of the Quality Housing and Work Responsibility Act of 
1998 describing the system used to distribute funding to 
grantees under this section, which shall include descriptions 
of--
            ``(1) the methodology used to distribute amounts 
        made available under this chapter among public housing 
        agencies, including provisions used to provide for 
        renewals of ongoing programs funded under this chapter; 
        and
            ``(2) actions taken by the Secretary to ensure that 
        amounts made available under this chapter are not used 
        to fund baseline local government services, as 
        described in section 5128(b).
    ``(c) Notice of Funding Awards.--The Secretary shall cause 
to be published in the Federal Register notice of all grant 
awards made pursuant to this chapter, which shall identify the 
grantees and the amount of the grants. Such notice shall be 
published not less frequently than annually.

``SEC. 5128. MONITORING.

    ``(a) In General.--The Secretary shall audit and monitor 
the programs funded under this chapter to ensure that 
assistance provided under this chapter is administered in 
accordance with the provisions of this chapter.
    ``(b) Prohibition of Funding Baseline Services.--
            ``(1) In general.--Amounts provided under this 
        chapter may not be used to reimburse or support any 
        local law enforcement agency or unit of general local 
        government for the provision of services that are 
        included in the baseline of services required to be 
        provided by any such entity pursuant to a local 
        cooperation agreement under section 5(e)(2) of the 
        United States Housing Act of 1937 or any provision of 
        an annual contributions contract for payments in lieu 
        of taxation pursuant to section 6(d) of such Act.
            ``(2) Description.--Each public housing agency that 
        receives grant amounts under this chapter shall 
        describe, in the report under section 5127(a), such 
        baseline of services for the unit of general local 
        government in which the jurisdiction of the agency is 
        located.
    ``(c) Enforcement.--The Secretary shall provide for the 
effective enforcement of this section, which may include the 
use of on-site monitoring, independent public audit 
requirements, certification by local law enforcement or local 
government officials regarding the performance of baseline 
services referred to in subsection (b), and entering into 
agreements with the Attorney General to achieve compliance, and 
verification of compliance, with the provisions of this 
chapter.

``SEC. 5129. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated 
to carry out this chapter $310,000,000 for fiscal year 1999, 
and such sums as may be necessary for fiscal years 2000, 2001, 
2002, and 2003.
    ``(b) Set-Aside for Federally Assisted Low-Income 
Housing.--Of any amounts made available in any fiscal year to 
carry out this chapter not more than 6.25percent shall be 
available for grants for federally assisted low-income housing.
    ``(c) Set-Aside for Technical Assistance and Program 
Oversight.--Of any amounts appropriated in any fiscal year to 
carry out this chapter, amounts shall be available to the 
extent provided in appropriations Acts to provide training, 
technical assistance, contract expertise, program oversight, 
program assessment, execution, and other assistance for or on 
behalf of public housing agencies, recipients of assistance 
under the Native American Housing Assistance and Self-
Determination Act of 1996, resident organizations, and 
officials and employees of the Department (including training 
and the cost of necessary travel for participants in such 
training, by or to officials and employees of the Department 
and of public housing agencies, and to residents and to other 
eligible grantees). Assistance and other activities carried out 
using amounts made available under this subsection may be 
provided directly or indirectly by grants, contracts, or 
cooperative agreements.''.

SEC. 587. REVIEW OF DRUG ELIMINATION PROGRAM CONTRACTS.

    (a) Requirement.--The Secretary of Housing and Urban 
Development shall investigate all security contracts awarded by 
grantees under the Public and Assisted Housing Drug Elimination 
Act of 1990 (42 U.S.C. 11901 et seq.) that are public housing 
agencies that own or operate more than 4,500 public housing 
dwelling units--
            (1) to determine whether the contractors under such 
        contracts have complied with all laws and regulations 
        regarding prohibition of discrimination in hiring 
        practices;
            (2) to determine whether such contracts were 
        awarded in accordance with the applicable laws and 
        regulations regarding the award of such contracts;
            (3) to determine how many such contracts were 
        awarded under emergency contracting procedures; and
            (4) to evaluate the effectiveness of the contracts.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall complete the 
investigation required under subsection (a) and submit a report 
to the Congress regarding the findings under the investigation. 
With respect to each such contract, the report shall (1) state 
whether the contract was made and is operating, or was not made 
or is not operating, in full compliance with applicable laws 
and regulations, and (2) for each contract that the Secretary 
determines is in such compliance issue a certification of such 
compliance by the Secretary of Housing and Urban Development.
    (c) Actions.--For each contract that is described in the 
report under subsection (b) as not made or not operating in 
full compliance with applicable laws and regulations, the 
Secretary of Housing and Urban Development shall promptly take 
any actions available under law or regulation that are 
necessary--
            (1) to bring such contract into compliance; or
            (2) to terminate the contract.
    (d) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 588. PROHIBITION ON USE OF ASSISTANCE FOR EMPLOYMENT RELOCATION 
                    ACTIVITIES.

    Section 105 of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305) is amended by adding at the end the 
following new subsection:
    ``(h) Prohibition on Use of Assistance for Employment 
Relocation Activities.--Notwithstanding any other provision of 
law, no amount from a grant under section 106 made in fiscal 
year 1999 or any succeeding fiscal year may be used to assist 
directly in the relocation of any industrial or commercial 
plant, facility, or operation, from 1 area to another area, if 
the relocation is likely to result in a significant loss of 
employment in the labor market area from which the relocation 
occurs.''.

SEC. 589. TREATMENT OF OCCUPANCY STANDARDS.

    (a) Establishment of Policy.--Not later than 60 days after 
the date of the enactment of this Act, the Secretary of Housing 
and Urban Development shall publish a notice in the Federal 
Register for effect that takes effect upon publication and 
provides that the specific and unmodified standards provided in 
the March 20, 1991, Memorandum from the General Counsel of the 
Department of Housing and Urban Development to all Regional 
Counsel shall be the policy of the Department of Housing and 
Urban Development with respect to complaints of discrimination 
under the Fair Housing Act (42 U.S.C. 3601 et seq.) on the 
basis of familial status which involve an occupancy standard 
established by a housing provider.
    (b) Prohibition of National Standard.--The Secretary of 
Housing and Urban Development shall not directly or indirectly 
establish a national occupancy standard.

SEC. 590. INCOME ELIGIBILITY FOR HOME AND CDBG PROGRAMS.

    (a) In General.--The Secretary of Housing and Urban 
Development shall, for not less than 10 jurisdictions that are 
metropolitan cities or urban counties for purposes of title I 
of the Housing and Community Development Act of 1974, grant 
exceptions not later than 90 days after the date of the 
enactment of this Act for such jurisdictions that provide 
that--
            (1) for purposes of the HOME investment 
        partnerships program under title II of the Cranston-
        Gonzalez National Affordable Housing Act, the 
        limitation based on percentage of median income that is 
        applicable under section 104(10), 214(1)(A), or 
        215(a)(1)(A) for any area of the jurisdiction shall be 
        the numerical percentage that is specified in such 
        section; and
            (2) for purposes of the community development block 
        grant program under title I of the Housing and 
        Community Development Act of 1974, the limitation based 
        on percentage of median income that is applicable 
        pursuant to section 102(a)(20) for any area within the 
        State or unit of general local government shall be the 
        numerical percentage that is specified in subparagraph 
        (A) of such section.
    (b) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC 591. REPORT ON SINGLE FAMILY AND MULTIFAMILY HOMES.

    (a) In General.--Not later than 12 months after the date of 
the enactment of this Act, the Inspector General of the 
Department of Housing and Urban Development shall submit to the 
Congress a report, which shall include information relating 
to--
            (1) with respect to 1- to 4-family dwellings owned 
        by the Department of Housing and Urban Development, on 
        a monthly average basis--
                    (A) the total number of units in those 
                dwellings;
                    (B) the number and percentage of units in 
                those dwellings that are unoccupied, and their 
                average period of vacancy, and the number and 
                percentage of units in those dwellings that 
                have been unoccupied for more than 1 year, as 
                of that date; and
                    (C) the number and percentage of units in 
                those projects that are determined by the 
                Inspector General to be substandard, based on 
                any--
                            (i) lack of hot or cold piped 
                        water;
                            (ii) lack of working toilets;
                            (iii) regular and prolonged 
                        breakdowns in heating;
                            (iv) dangerous electrical problems;
                            (v) unsafe hallways or stairways;
                            (vi) leaking roofs, windows, or 
                        pipes;
                            (vii) open holes in walls and 
                        ceilings; and
                            (viii) indications of rodent 
                        infestation; and
            (2) with respect to multifamily housing projects 
        (as that term is defined in section 203 of the Housing 
        and Community Development Amendments of 1978) owned by 
        the Department of Housing and Urban Development on a 
        monthly average basis--
                    (A) the total number of units in those 
                projects;
                    (B) the number and percentage of units in 
                those projects that are unoccupied, and their 
                average period of vacancy, and the number and 
                percentage of units in those projects that have 
                been unoccupied for more than 1 year, as of 
                that date; and
                    (C) the number and percentage of units in 
                those projects that are determined by the 
                Inspector General to be substandard, based on 
                any--
                            (i) lack of hot or cold piped 
                        water;
                            (ii) lack of working toilets;
                            (iii) regular and prolonged 
                        breakdowns in heating;
                            (iv) dangerous electrical problems;
                            (v) unsafe hallways or stairways;
                            (vi) leaking roofs, windows, or 
                        pipes;
                            (vii) open holes in walls and 
                        ceilings; and
                            (viii) indications of rodent 
                        infestation; and
            (3) the Department's plans and operations to 
        address vacancies and substandard physical conditions 
        described in paragraphs (1) and (2).
    (b) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 592. USE OF ASSISTED HOUSING BY ALIENS.

    (a) In General.--Section 214 of the Housing and Community 
Development Act of 1980 (42 U.S.C. 1436a) is amended--
            (1) in subsection (b)(2), by striking ``Secretary 
        of Housing and Urban Development'' and inserting 
        ``applicable Secretary'';
            (2) in subsection (c)(1)(B), by moving clauses (ii) 
        and (iii) 2 ems to the left;
            (3) in subsection (d)--
                    (A) in paragraph (1)(A)--
                            (i) by striking ``Secretary of 
                        Housing and Urban Development'' and 
                        inserting ``applicable Secretary''; and
                            (ii) by striking ``the Secretary'' 
                        and inserting ``the applicable 
                        Secretary'';
                    (B) in paragraph (2), in the matter 
                following subparagraph (B)--
                            (i) by inserting ``applicable'' 
                        before ``Secretary''; and
                            (ii) by moving such matter (as so 
                        amended by clause (i)) 2 ems to the 
                        right;
                    (C) in paragraph (4)(B)(ii), by inserting 
                ``applicable'' before ``Secretary'';
                    (D) in paragraph (5), by striking ``the 
                Secretary'' and inserting ``the applicable 
                Secretary''; and
                    (E) in paragraph (6), by inserting 
                ``applicable'' before ``Secretary'';
            (4) in subsection (h) (as added by section 576 of 
        the Illegal Immigration Reform and Immigrant 
        Responsibility Act of 1996 (division C of Public Law 
        104-208))--
                    (A) in paragraph (1)--
                            (i) by striking ``Except in the 
                        case of an election under paragraph 
                        (2)(A), no'' and inserting ``No'';
                            (ii) by striking ``this section'' 
                        and inserting ``subsection (d)''; and
                            (iii) by inserting ``applicable'' 
                        before ``Secretary''; and
                    (B) in paragraph (2)--
                            (i) by striking subparagraph (A) 
                        and inserting the following new 
                        subparagraph:
                    ``(A) may, notwithstanding paragraph (1) of 
                this subsection, elect not to affirmatively 
                establish and verify eligibility before 
                providing financial assistance''; and
                            (ii) in subparagraph (B), by 
                        striking ``in complying with this 
                        section'' and inserting ``in carrying 
                        out subsection (d)''; and
            (5) by redesignating subsection (h) (as amended by 
        paragraph (4)) as subsection (i).
    (b) Effective Date.--The amendments made by this section 
are made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 593. PROTECTION OF SENIOR HOMEOWNERS UNDER REVERSE MORTGAGE 
                    PROGRAM.

    (a) Mortgage Insurance Authority.--Section 255(g) of the 
National Housing Act (12 U.S.C. 1715z-20(g)) is amended by 
striking the first 2 sentences and inserting the following new 
sentence: ``The aggregate number of mortgages insured under 
this section may not exceed 150,000.''.
    (b) Other Approaches to Consumer Education.--Section 255(f) 
of the National Housing Act (12 U.S.C. 1715z-20(f)) is amended 
by adding after paragraph (5) the following:
``The Secretary shall consult with consumer groups, industry 
representatives, representatives of counseling organizations, 
and other interested parties to identify alternative approaches 
to providing consumer information required by this subsection 
that may be feasible and desirable for home equity conversion 
mortgages insured under this section and other types of reverse 
mortgages. The Secretary may, in lieu of providing the consumer 
education required by this subsection, adopt alternative 
approaches to consumer education that may be developed as a 
result of such consultations, but only if the alternative 
approaches provide all of the information specified in this 
subsection.''.
    (c) Funding for Counseling and Consumer Education and 
Outreach.--Section 255 of the National Housing Act (12 U.S.C. 
1715z-20) is amended by adding at the end the following new 
subsection:
    ``(l) Funding for Counseling and Consumer Education and 
Outreach.--Of any amounts made available for any of fiscal 
years 2000 through 2003 for housing counseling under section 
106 of the Housing and Urban Development Act of 1968, up to a 
total of $1,000,000 shall be available to the Secretary in each 
such fiscal year, in such amounts as the Secretary determines 
appropriate, for the following purposes in connection with home 
equity conversion mortgages insured under this section:
            ``(1) Counseling.--For housing counseling 
        authorized by section 106 of the Housing and Urban 
        Development Act of 1968.
            ``(2) Consumer education.--For transfer to the 
        departmental salaries and expenses account for consumer 
        education and outreach activities.''.
    (d) Conforming Amendments.--Section 255 of the National 
Housing Act (12 U.S.C. 1715z-20) is amended--
            (1) in the section heading, by striking 
        ``demonstration program of'';
            (2) in subsections (a) and (i)(1), by striking 
        ``demonstration'' each place it appears;
            (3) in subsection (a)--
                    (A) in paragraph (1), by inserting ``and'' 
                after the semicolon at the end;
                    (B) in paragraph (2), by striking ``; and'' 
                at the end and inserting a period; and
                    (C) by striking paragraph (3);
            (4) by striking subsection (k) (relating to reports 
        to Congress); and
            (5) by redesignating subsection (l) (as added by 
        subsection (c) of this section) as subsection (k).
    (e) Disclosure Requirements and Prohibition of Funding of 
Unnecessary or Excessive Costs.--
            (1) In general.--Section 255(d) of the National 
        Housing Act (12 U.S.C. 1715z-20(d)) is amended--
                    (A) in paragraph (2)--
                            (i) in subparagraph (B), by 
                        striking ``and'' at the end;
                            (ii) by redesignating subparagraph 
                        (C) as subparagraph (D); and
                            (iii) by inserting after 
                        subparagraph (B) the following:
                    ``(C) has received full disclosure, as 
                prescribed by the Secretary, of all costs 
                charged to the mortgagor, including costs of 
                estate planning, financial advice, and other 
                services that are related to the mortgage but 
                are not required to obtain the mortgage, which 
                disclosure shall clearly state which charges 
                are required to obtain the mortgage and which 
                are not required to obtain the mortgage; and''
                    (B) in paragraph (9)(F), by striking 
                ``and'';
                    (C) in paragraph (10), by striking the 
                period at the end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(11) have been made with such restrictions as the 
        Secretary determines to be appropriate to ensure that 
        the mortgagor does not fund any unnecessary or 
        excessive costs for obtaining the mortgage, including 
        any costs of estate planning, financial advice, or 
        other related services.''.
            (2) Implementation.--
                    (A) Notice.--The Secretary of Housing and 
                Urban Development shall, by interim notice, 
                implement the amendments made by paragraph (1) 
                in an expeditious manner, as determined by the 
                Secretary. Such notice shall not be effective 
                after the date of the effectiveness of the 
                final regulations issued under subparagraph (B) 
                of this paragraph.
                    (B) Regulations.--The Secretary shall, not 
                later than the expiration of the 90-day period 
                beginning on the date of the enactment of this 
                Act, issue final regulations to implement the 
                amendments made by paragraph (1). Such 
                regulations shall be issued only after notice 
                and opportunity for public comment pursuant to 
                the provisions of section 553 of title 5, 
                United States Code (notwithstanding subsections 
                (a)(2) and (b)(3)(B) of such section).
    (f) Effective Date.--This section shall take effect on, and 
the amendments made by this section are made on, and shall 
apply beginning upon, the date of the enactment of this Act.

SEC. 594. HOUSING COUNSELING.

    (a) Extension of Emergency Homeownership Counseling.--
Section 106(c)(9) of the Housing and Urban Development Act of 
1968 (12 U.S.C. 1701x(c)(9)) is amended by striking ``September 
30, 1994'' and inserting ``September 30, 2000''.
    (b) Notification of Delinquency on Veterans Home Loans.--
    Subparagraph (C) of section 106(c)(5) of the Housing and 
Urban Development Act of 1968 is amended to read as follows:
                    ``(C) Notification.--Notification under 
                subparagraph (A) shall not be required with 
                respect to any loan for which the eligible 
                homeowner pays the amount overdue before the 
                expiration of the 45-day period under 
                subparagraph (B)(ii).''.
    (c) Effective Date.--The amendments made by this section 
are made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 595. NATIVE AMERICAN HOUSING ASSISTANCE.

    (a) Subsidy Layering Certification.--Section 206 of the 
Native American Housing Assistance and Self-Determination Act 
of 1996 (25 U.S.C. 4136) is amended--
            (1) by striking ``certification by the Secretary'' 
        and inserting ``certification by a recipient to the 
        Secretary''; and
            (2) by striking ``any housing project'' and 
        inserting ``the housing project involved''.
    (b) Inclusion of Homebuyer Selection Policies and 
Criteria.--Section 207(b) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4137(b)) is amended--
            (1) by striking ``Tenant Selection.--'' and 
        inserting ``Tenant  and Homebuyer Selection.--'';
            (2) in the matter preceding paragraph (1), by 
        inserting ``and homebuyer'' after ``tenant''; and
            (3) in paragraph (3)(A), by inserting ``and 
        homebuyers'' after ``tenants''.
    (c) Repayment of Grant Amounts for Violation of Affordable 
Housing Requirement.--Section 209 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4139) is amended by striking ``section 205(2)'' and 
inserting ``section 205(a)(2)''.
    (d) Amendment to United States Housing Act of 1937.--
Section 7 of the United States Housing Act of 1937 (42 U.S.C. 
1437e) is amended by striking subsection (h).
    (e) Miscellaneous.--
            (1) Definition of indian areas.--Section 4(10) of 
        the Native American Housing Assistance and Self-
        Determination Act of 1996 (25 U.S.C. 4103(10)) is 
        amended to read as follows:
            ``(10) Indian area.--The term `Indian area' means 
        the area within which an Indian tribe or a tribally 
        designated housing entity, as authorized by 1 or more 
        Indian tribes, provides assistance under this Act for 
        affordable housing.''.
            (2) Cross-reference.--Section 4(12)(C)(i)(II) of 
        the Native American Housing Assistance and Self-
        Determination Act of 1996 (25 U.S.C. 
        4103(12)(C)(i)(II)) is amended by striking ``section 
        107'' and inserting ``section 705''.
            (3) Local cooperation agreements.--Section 101(c) 
        of the Native American Housing Assistance and Self-
        Determination Act of 1996 (25 U.S.C. 4111(c)) is 
        amended to read as follows:
    ``(c) Local Cooperation Agreement.--Notwithstanding any 
other provision of this Act, grant amounts provided under this 
Act on behalf of an Indian tribe may not be used for rental or 
lease-purchase homeownership units that are owned by the 
recipient for the tribe unless the governing body of the 
locality within which the property subject to the development 
activities to be assisted with the grant amounts is or will be 
situated has entered into an agreement with the recipient for 
the tribe providing for local cooperation required by the 
Secretary pursuant to this Act.''.
            (4) Exemption from taxation.--Section 101(d) of the 
        Native American Housing Assistance and Self-
        Determination Act of 1996 (25 U.S.C. 4111(d)) is 
        amended--
                    (A) by striking the subsection designation 
                and subsection heading and all that follows 
                through the end of paragraph (1) and inserting 
                the following:
    ``(d) Exemption From Taxation.--Notwithstanding any other 
provision of this Act, grant amounts provided under this Act on 
behalf of an Indian tribe may not be used for affordable 
housing activities under this Act for rental or lease-purchase 
dwelling units developed under the United States Housing Act of 
1937 (42 U.S.C. 1437 et seq.) or with amounts provided under 
this Act that are owned by the recipient for the tribe unless--
            ``(1) such dwelling units (which, in the case of 
        units in a multi-unit project, shall be exclusive of 
        any portions of the project not developed under the 
        United States Housing Act of 1937 or with amounts 
        provided under this Act) are exempt from all real and 
        personal property taxes levied or imposed by any State, 
        tribe, city, county, or other political subdivision; 
        and''; and
                    (B) in paragraph (2), in the matter 
                preceding subparagraph (A), by inserting ``for 
                the tribe'' after ``the recipient''.
            (5) Submission of indian housing plan.--Section 
        102(a) of the Native American Housing Assistance and 
        Self-Determination Act of 1996 (25 U.S.C. 4112(a)) is 
        amended--
                    (A) in paragraph (1), by inserting ``(A)'' 
                after ``(1)'';
                    (B) in paragraph (1)(A), as so designated 
                by subparagraph (A) of this paragraph, by 
                adding ``or'' at the end;
                    (C) by striking ``(2)'' and inserting 
                ``(B)''; and
                    (D) by striking ``(3)'' and inserting 
                ``(2)''.
            (6) Clarification.--Section 103(c)(3) of the Native 
        American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4113(c)(3)) is amended by inserting 
        ``not'' before ``prohibited''.
            (7) Applicability of provisions of civil rights.--
        Section 201(b)(5) of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4131(b)(5)) is amended--
                    (A) by striking ``Indian tribes'' and 
                inserting ``federally recognized tribes and the 
                tribally designated housing entities of those 
                tribes''; and
                    (B) by striking ``under this subsection'' 
                and inserting ``under this Act''.
            (8) Eligibility.--Section 205(a)(1) of the Native 
        American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4135(a)(1)) is amended--
                    (A) in subparagraph (A), by striking 
                ``and'' at the end; and
                    (B) by striking subparagraph (B) and 
                inserting the following:
                    ``(B) in the case of a contract to purchase 
                existing housing, is made available for 
                purchase only by a family that is a low-income 
                family at the time of purchase;
                    ``(C) in the case of a lease-purchase 
                agreement for existing housing or for housing 
                to be constructed, is made available for lease-
                purchase only by a family that is a low-income 
                family at the time the agreement is entered 
                into; and
                    ``(D) in the case of a contract to purchase 
                housing to be constructed, is made available 
                for purchase only by a family that is a low-
                income family at the time the contract is 
                entered into; and''.
            (9) Tenant selection.--Section 207(b)(3)(B) of the 
        Native American Housing Assistance and Self-
        Determination Act of 1996 (25 U.S.C. 4137(b)(3)(B)) is 
        amended by striking ``of any rejected applicant of the 
        grounds for any rejection'' and inserting ``to any 
        rejected applicant of that rejection and the grounds 
        for that rejection''.
            (10) Availability of records.--Section 208 of the 
        Native American Housing Assistance and Self-
        Determination Act of 1996 (25 U.S.C. 4138) is amended--
                    (A) in subsection (a), by striking 
                ``paragraph (2)'' and inserting ``subsection 
                (b)''; and
                    (B) in subsection (b), by striking 
                ``paragraph (1)'' and inserting ``subsection 
                (a)''.
            (11) IHP requirement.--Section 184(b)(2) of the 
        Housing and Community Development Act of 1992 (12 
        U.S.C. 1715z-13a(b)(2)) is amended by striking ``that 
        is under the jurisdiction of an Indian tribe'' and all 
        that follows before the period at the end.
            (12) Authorization of appropriations.--Section 
        184(i)(5)(C) of the Housing and Community Development 
        Act of 1992 (12 U.S.C. 1715z-13a(i)(5)(C)) is amended 
        by striking ``note'' and inserting ``not''.
            (13) Environmental review under the indian housing 
        loan guarantee program.--Section 184 of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 1715z-13a) 
        is amended--
                    (A) by redesignating subsection (k) as 
                subsection (l); and
                    (B) by inserting after subsection (j) the 
                following:
    ``(k) Environmental Review.--For purposes of environmental, 
review, decisionmaking, and action under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
any other law that furthers the purposes of that Act, a loan 
guarantee under this section shall--
            ``(1) be treated as a grant under the Native 
        American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4101 et seq.); and
            ``(2) be subject to the regulations promulgated by 
        the Secretary to carry out section 105 of the Native 
        American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4115).''.
            (14) Public availability of information.--
                    (A) In general.--Title IV of the Native 
                American Housing Assistance and Self-
                Determination Act of 1996 (25 U.S.C. 4161 et 
                seq.) is amended by adding at the end the 
                following:

``SEC. 408. PUBLIC AVAILABILITY OF INFORMATION.

    ``Each recipient shall make any housing plan, policy, or 
annual report prepared by the recipient available to the 
general public.''.
                    (B) Table of contents.--Section 1(b) of the 
                Native American Housing Assistance and Self-
                Determination Act of 1996 (25 U.S.C. 4101 note) 
                is amended in the table of contents by 
                inserting after the item relating to section 
                407 the following:

``Sec. 408. Public availability of information.''.

            (15) Ineligibility of indian tribes.--Section 460 
        of the Cranston-Gonzalez National Affordable Housing 
        Act (42 U.S.C. 12899h-1) is amended by striking 
        ``fiscal year 1997'' and inserting ``fiscal year 
        1998''.
            (16) Treatment of previous amendments.--Section 402 
        of The Balanced Budget Downpayment Act, I (42 U.S.C. 
        1437a note) is amended by striking subsection (e).
    (f) Effective Date.--The amendments made by this section 
are made and shall apply beginning upon the date of the 
enactment of this Act.

SEC. 596. CDBG PUBLIC SERVICES CAP.

    (a) In General.--Section 105(a)(8) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5305(a)(8)) is 
amended by striking ``1998'' and inserting ``2000''.
    (b) Effective Date.--The amendment made by this section is 
made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 597. MODERATE REHABILITATION PROGRAM.

    (a) Reprogramming.--Notwithstanding any other provision of 
law, but only to the extent specifically provided in advance in 
a subsequent appropriations Act, the Secretary of Housing and 
Urban Development shall reprogram funds under contracts 
NY36K113004 and NY36K113005 of the Department of Housing and 
Urban Development and shall allocate such funds to the City of 
New Rochelle, New York. Such allocation shall be consistent 
with the requirements of the HOME Investment Partnerships Act. 
This section shall take effect on the date of the enactment of 
this Act.
    (b) Exception Projects.--Section 524(a)(2) of the 
Multifamily Assisted Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note) is amended--
            (1) by inserting ``and subject to section 516 of 
        this subtitle'' after ``Notwithstanding paragraph 
        (1)''; and
            (2) by striking ``the base rent adjusted by an 
        operating cost adjustment factor established by the 
        Secretary'' and inserting ``the lesser of existing 
        rents, adjusted by an operating cost adjustment factor 
        established by the Secretary, fair market rents (less 
        any amounts allowed for tenant-purchased utilities), or 
        comparable market rents for the market area''.
    (c) Effective Date.--This section shall take effect on, and 
the amendments made by this section are made on, and shall 
apply beginning upon, the date of the enactment of this Act.

SEC. 598. NATIONAL CITIES IN SCHOOLS PROGRAM.

    From amounts that are or have been recaptured in the Annual 
Contributions for Assisted Housing account, before any 
rescissions of such amounts, $5,000,000, shall be transferred 
to the National Cities in Schools Community Development Program 
account, to remain available until expended, that the Secretary 
of Housing and Urban Development shall make available to carry 
out the National Cities in Schools Community Development 
Program under section 930 of the Housing and Community 
Development Act of 1992 (Public Law 102-550, 106 Stat. 3672, 
3887). This section shall take effect on the date of the 
enactment of this Act.

SEC. 599. TENANT PARTICIPATION IN MULTIFAMILY HOUSING PROJECTS.

    (a) In General.--The last sentence of subsection (a) of 
section 202 of the Housing and Community Development Amendments 
of 1978 (12 U.S.C. 1715z-1b(a)) is amended by inserting before 
the period at the end the following: ``, or a project which 
receives project-based assistance under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f) or enhanced 
vouchers under the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990, the provisions of the Emergency Low 
Income Housing Preservation Act of 1987, or the Multifamily 
Assisted Housing Reform and Affordability Act of 1997''.
    (b) Applicability.--The amendment made by this section is 
made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 599A. CLARIFICATION REGARDING RECREATIONAL VEHICLES.

    (a) In General.--Section 603(6) of the Manufactured Housing 
Construction and Safety Standards Act of 1974 (42 U.S.C. 
5402(6)) is amended by inserting before the semicolon at the 
end the following: ``; and except that such term shall not 
include any self-propelled recreational vehicle''.
    (b) Applicability.--The amendment made by this section is 
made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 599B. DETERMINATION OF LOW-INCOME ELIGIBILITY FOR HOMEOWNERSHIP 
                    ASSISTANCE.

    (a) Income Targeting.--Section 214(2) of the Cranston-
Gonzalez National Affordable Housing Act is amended by striking 
``at the time of occupancy or at the time funds are invested, 
whichever is later''.
    (b) Qualification as Affordable Housing.--Section 215(b)(2) 
of such Act is amended to read as follows:
            ``(2) is the principal residence of an owner whose 
        family qualifies as a low-income family--
                    ``(A) in the case of a contract to purchase 
                existing housing, at the time of purchase;
                    ``(B) in the case of a lease-purchase 
                agreement for existing housing or for housing 
                to be constructed, at the time the agreement is 
                signed; or
                    ``(C) in the case of a contract to purchase 
                housing to be constructed, at the time the 
                contract is signed;''.
    (c) Applicability.--The amendments made by this section are 
made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 599C. AMENDMENTS TO RURAL HOUSING PROGRAMS.

    (a) Permanent Extension of Underserved Areas Program.--
Section 509(f)(4)(A) of the Housing Act of 1949 (42 U.S.C. 
1479(f)(4)(A)) is amended--
            (1) in the first sentence, by striking ``fiscal 
        year 1998'' and inserting ``each fiscal year''; and
            (2) in the second sentence, by striking ``such 
        fiscal year'' and inserting ``each fiscal year''.
    (b) Permanent Extension of Section 515 Program.--
            (1) Authority to make loans.--Section 515(b) of the 
        Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraphs (5), (6), 
                and (7) as paragraphs (4), (5), and (6), 
                respectively.
            (2) Set-aside for nonprofit entities.--The first 
        sentence of section 515(w)(1) of the Housing Act of 
        1949 (42 U.S.C. 1485(w)(1)) is amended by striking 
        ``fiscal year 1998'' and inserting ``each fiscal 
        year''.
    (c) Loan Guarantee Program for Multifamily Rental Housing 
in Rural Areas.--Section 538 of the Housing Act of 1949 (42 
U.S.C. 1490p-2) is amended--
            (1) in subsection (t), by striking ``fiscal year 
        1998'' and inserting ``each fiscal year''; and
            (2) by striking subsection (u) and inserting the 
        following new subsection:
    ``(u) Tax-Exempt Financing.--The Secretary may not deny a 
guarantee under this section on the basis that the interest on 
the loan or on an obligation supporting the loan for which a 
guarantee is sought is exempt from inclusion in gross income 
for purposes of chapter I of the Internal Revenue Code of 
1986.''.
    (d) Farm Labor Housing Eligibility for Low-Income Housing 
Tax Credit Financing.--The first sentence of section 514(a) of 
the Housing Act of 1949 (42 U.S.C. 1484(a)) is amended by 
inserting ``, or any nonprofit limited partnership in which the 
general partner is a nonprofit entity,'' after ``private 
nonprofit organization''.
    (e) Optional Conversion of Rental Assistance Payments to 
Operating Subsidy for Migrant Farmworker Projects.--
            (1) In general.--Section 521(a) of the Housing Act 
        of 1949 (42 U.S.C. 1490(a)) is amended by adding at the 
        end the following new paragraph:
    ``(5) Operating assistance for migrant farmworker 
projects.--
            ``(A) Authority.--In the case of housing (and 
        related facilities) for migrant farmworkers provided or 
        assisted with a loan under section 514 or a grant under 
        section 516, the Secretary may, at the request of the 
        owner of the project, use amounts provided for rental 
        assistance payments under paragraph (2) to provide 
        assistance for the costs of operating the project. Any 
        project assisted under this paragraph may not receive 
        rental assistance under paragraph (2).
            ``(B) Amount.--In any fiscal year, the assistance 
        provided under this paragraph for any project shall not 
        exceed an amount equal to 90 percent of the operating 
        costs for the project for the year, as determined by 
        the Secretary. The amount of assistance to be provided 
        for a project under this paragraph shall be an amount 
        that makes units in the project available to migrant 
        farmworkers in the area of the project at rates not 
        exceeding 30 percent of the monthly adjusted incomes of 
        such farmworkers, based on the prevailing incomes of 
        such farmworkers in the area.
            ``(C) Submission of information.--The owner of a 
        project assisted under this paragraph shall be required 
        to provide to the Secretary, at least annually, a 
        budget of operating expenses and estimated rental 
        income, which the Secretary may use to determine the 
        amount of assistance for the project.
            ``(D) Definitions.--For purposes of this paragraph, 
        the following definitions shall apply:
                    ``(i) The term `migrant farmworker' has the 
                same meaning given such term in section 
                516(k)(7).
                    ``(ii) The term `operating cost' means 
                expenses incurred in operating a project, 
                including expenses for--
                            ``(I) administration, maintenance, 
                        repair, and security of the project;
                            ``(II) utilities, fuel, 
                        furnishings, and equipment for the 
                        project; and
                            ``(III) maintaining adequate 
                        reserve funds for the project.''.
            (2) Conforming amendments.--Title V of the Housing 
        Act of 1949 (42 U.S.C. 1471 et seq.) is amended--
                    (A) in section 502--
                            (i) in subsection (c)(1)(A)(i), by 
                        striking ``or (a)(2)'' and inserting 
                        ``, (a)(2), or (5)'';
                            (ii) in subsection (c)(4)(B)(ii), 
                        by inserting before the period at the 
                        end the following: ``, or additional 
                        assistance or an increase in assistance 
                        provided under section 521(a)(5)'';
                            (iii) in subsection (c)(4)(B)(iii), 
                        by ``or 521(a)(5)'' after ``section 
                        521(a)(2)'';
                            (iv) in subsection (c)(4)(B)(v), by 
                        inserting before the period at the end 
                        the following: ``, or current tenants 
                        of projects not assisted under section 
                        521(a)(5)'';
                            (v) in subsection (c)(5)(C)(iii)--
                                    (I) by striking the second 
                                comma; and
                                    (II) by inserting ``or any 
                                assistance payments received 
                                under section 521(a)(5),'' 
                                before ``with respect''; and
                            (vi) in subsection (c)(5)(D), by 
                        inserting before the period at the end 
                        the following: ``or, in the case of 
                        housing assisted under section 
                        521(a)(5), does not exceed the rents 
                        established for the project under such 
                        section'';
                    (B) in the second sentence of subparagraph 
                (A) of section 509(f)(4), by striking ``an 
                amount of section 521 rental assistance'' and 
                inserting ``from amounts available for 
                assistance under paragraphs (2) and (5) of 
                section 521(a), an amount'';
                    (C) in section 513(c)(2)--
                            (i) in the matter preceding 
                        subparagraph (A), by inserting ``or 
                        contracts for operating assistance 
                        under section 521(a)(5)'' after 
                        ``section 521(a)(2)(A)'';
                            (ii) in subparagraph (A), by 
                        inserting ``or operating assistance 
                        contracts'' after ``contracts'';
                            (iii) in subparagraph (B), by 
                        striking ``rental'' each place it 
                        appears; and
                            (iv) in subparagraph (C), by 
                        inserting ``or operating assistance 
                        contracts'' after ``contracts'';
                    (D) in section 521(a)(2)(B)--
                            (i) by inserting ``or paragraph 
                        (5)'' after ``this paragraph''; and
                            (ii) by striking ``which shall'' 
                        and all that follows through the period 
                        at the end and inserting the following: 
                        ``. The budget (and the income, in the 
                        case of a project assisted under this 
                        paragraph) shall be used to determine 
                        the amount of the assistance for each 
                        project.'';
                    (E) in section 521(c), by striking 
                ``subsection (a)(2)'' and inserting 
                ``subsections (a)(2) and (a)(5)'';
                    (F) in section 521(e), by inserting after 
                ``recipient'' the following: ``or any tenant in 
                a project assisted under subsection (a)(5)''; 
                and
                    (G) in section 530, by striking ``rental 
                assistance payments with respect to such 
                project under section 521(a)(2)(A)'' and 
                inserting ``assistance payments with respect to 
                such project under section 521(a)(2)(A) or 
                521(a)(5)''.
    (f) Rural Housing Guaranteed Loans.--Section 502(h)(6)(C) 
of the Housing Act of 1949 (42 U.S.C. 1472(h)(6)(C)) is amended 
by striking ``, subject to the maximum dollar amount limitation 
of section 203(b)(2) of the National Housing Act'' each place 
it appears.
    (g) Applicability.--The amendments made by this section are 
made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 599D. REAUTHORIZATION OF NATIONAL FLOOD INSURANCE PROGRAM.

    (a) Program Expiration.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 1998'' and inserting ``September 30, 2001''.
    (b) Emergency Implementation of Program.--Section 1336(a) 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4056(a)) 
is amended by striking ``September 30, 1998'' and inserting 
``September 30, 2001''.
    (c) Applicability.--The amendments made by this section are 
made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 599E. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS

    (a) National Competitive Grants.--Section 11 of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 
note) is amended--
            (1) in subsection (a), by striking ``to--'' and all 
        that follows and inserting the following: ``to national 
        and regional organizations and consortia that have 
        experience in providing or facilitating self-help 
        housing homeownership opportunities.'';
            (2) in subsection (b)--
                    (A) in paragraph (4), by striking ``Habitat 
                for Humanity, its affiliates, and other''; and
                    (B) in paragraph (5), by striking ``similar 
                to the homeownership program carried out by 
                Habitat for Humanity International,'';
            (3) by striking subsection (c) and inserting the 
        following new subsection:
    ``(c) National Competition.--The Secretary shall select 
organizations and consortia referred to in subsection (a) to 
receive grants through a national competitive process, which 
the Secretary shall establish.'';
            (4) in subsection (e), by striking paragraph (2) 
        and inserting the following new paragraph:
            ``(2) Assistance to affiliates.--Any organization 
        or consortia that receives a grant under this section 
        may use amounts in the fund established for such 
        organization or consortia pursuant to paragraph (1) for 
        the purposes under subsection (d) by providing 
        assistance from the fund to local affiliates of such 
        organization or consoria.'';
            (5) in subsection (f)--
                    (A) in the subsection heading, by striking 
                ``to Other Organizations''; and
                    (B) in the matter preceding paragraph (1), 
                by striking ``subsection (a)(2)'' and inserting 
                ``subsection (a)'';
            (6) by striking subsection (g);
            (7) in subsection (h)--
                    (A) by striking the first sentence; and
                    (B) in the second sentence, by striking 
                ``subsection (a)(2)'' and inserting 
                ``subsection (a)'';
            (8) in subsection (i)(5), by inserting ``(or, in 
        the case of grant amounts from amounts made available 
        for fiscal year 1996 to carry out this section, within 
        36 months)'' before the comma;
            (9) in subsection (j), by inserting ``(or, in the 
        case of grant amounts from amounts made available for 
        fiscal year 1996 to carry out this section, within 36 
        months)'' before the second comma;
            (10) in subsection (k)(1), by striking ``under 
        subsection (a)(1) or (a)(2)'';
            (11) by redesignating subsection (p) as subsection 
        (q);
            (12) by inserting after subsection (o) the 
        following new subsection:
    ``(p) Authorization of Appropriations.--To carry out this 
section, there are authorized to be appropriated for fiscal 
years 1999 and 2000 such sums as may be necessary.''; and
            (13) in the section heading, by striking ``HABITAT 
        FOR HUMANITY AND OTHER''.
    (b) Savings Provisions.--Notwithstanding the amendments 
made by subsection (a), any grant under section 11 of the 
Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 
12805 note) from amounts appropriated in fiscal year 1998 or 
any prior fiscal year shall be governed by the provisions of 
such section 11 as in effect immediately before the enactment 
of this Act, except that the amendments made by paragraphs (8) 
and (9) of subsection (a) of this section shall apply to such 
grants.
    (c) Effective Date.--This section shall take effect, and 
the amendments made by this section are made on, and shall 
apply beginning upon, the date of the enactment of this Act.

SEC. 599F. SPECIAL MORTGAGE INSURANCE ASSISTANCE.

    (a) In General.--Section 237 of the National Housing Act 
(12 U.S.C. 1715z-2) is amended--
            (1) in subsection (b), by inserting ``not more than 
        26 percent of the total principal obligation (including 
        such initial service charges, and such appraisal, 
        inspection, and other fees as the Secretary shall 
        approve) of'' before ``any mortgage'';
            (2) in paragraph (c)(2) by striking ``$18,000:'' 
        and all that follows through the end of the paragraph 
        and inserting ``$70,000;'';
            (3) in paragraph (c)(3)--
                    (A) by inserting ``, prior to and during 
                the 12 months immediately following the 
                purchase of the property, from a community 
                development financial institution under section 
                103(5) of the Community Development Banking and 
                Financial Institutions Act of 1994'' after 
                ``budget, debt management, and related 
                counseling''; and
                    (B) by striking ``and'' at the end;
            (4) in paragraph (c)(4)--
                    (A) by striking ``25'' and inserting 
                ``36''; and
                    (B) by striking the period and inserting 
                ``; and'';
            (5) in subsection (c), by adding at the end the 
        following new paragraphs:
            ``(5) require the mortgagor to be subject, if 
        necessary, to a default mitigation effort undertaken by 
        an intermediary community development financial 
        institution under section 103(5) of the Community 
        Development Banking and Financial Institutions Act of 
        1994, that is acting as a sponsor and pass-through of 
        insurance under section 203 and is approved by the 
        Secretary;
            ``(6) involve a total principal obligation 
        (including such initial service charges, and such 
        appraisal, inspection, and other fees as the Secretary 
        shall approve) that is not more than 90 percent of the 
        value of the property for which the mortgage is 
        provided; and
            ``(7) involve a total principal obligation 
        (including such initial service charges, and such 
        appraisal, inspection, and other fees as the Secretary 
        shall approve) in which the mortgagor has equity (as 
        defined by the Secretary) of not less than 10 percent 
        and such equity shall be subordinate to the interest of 
        the Secretary in the mortgaged property.'';
            (6) in subsection (d), by striking ``and (2)'' and 
        inserting ``(2) to families living in empowerment zones 
        and enterprise communities (as those terms are defined 
        in section 1393(b) of the Internal Revenue Code of 1986 
        (26 U.S.C. 1393(b)) who are eligible for homeownership 
        assistance, and (3)'';
            (7) in subsection (e), by striking ``public or 
        private organizations'' and inserting ``community 
        development financial institutions under section 103(5) 
        of the Community Development Banking and Financial 
        Institutions Act of 1994'';
            (8) in subsection (f), by striking ``all 
        mortgages'' and inserting ``the portions of 
        mortgages'';
            (9) by redesignating subsection (g) as subsection 
        (j); and
            (10) by inserting after subsection (f), the 
        following new subsections:
    ``(g) Mortgages insured under this section shall be subject 
to an insurance premium fee of not more than 1.25 percent of 
the total mortgage principal obligation (including such initial 
service charges, and such appraisal, inspection, and other fees 
as the Secretary shall approve).
    ``(h) Before insuring a mortgage under this section, the 
Secretary shall enter into such contracts or other agreements 
as may be necessary to ensure that the mortgagee or other 
holder of the mortgage shall assume not less than 10 percent 
and not more than 50 percent of any loss on the insured 
mortgage, subject to any reasonable limit on the liability of 
the mortgagee or holder of the mortgage that may be specified 
in the event of unusual or catastrophic losses that may be 
incurred by any one mortgagee or mortgage holder.
    ``(i) No guarantees may be issued under section 306(g) for 
the timely payment of interest or principal on securities 
backed, in whole or in part, by mortgages insured under this 
section.''.
    (b) Effective Date.--The amendments under by this section 
are made on, and shall apply beginning upon, the date of the 
enactment of this Act.

SEC. 599G. REHABILITATION DEMONSTRATION GRANT PROGRAM.

    (a) In General.--The Secretary of Housing and Urban 
Development shall, to the extent amounts are provided in 
appropriation Acts to carry out this section, carry out a 
program to demonstrate the effectiveness of making grants for 
rehabilitation of single family housing located within 10 
demonstration areas designated by the Secretary. Of the areas 
designated by the Secretary under this section--
            (1) 6 shall be areas that have primarily urban 
        characteristics;
            (2) 3 shall be areas that are outside of a 
        metropolitan statistical area; and
            (3) 1 shall be an area that has primarily rural 
        characteristics.
In selecting areas, the Secretary shall provide for national 
geographic and demographic diversity.
    (b) Grantees.--Grants under the program under this section 
may be made only to agencies of State and local governments and 
non-profit organizations operating within the demonstration 
areas.
    (c) Selection Criteria.--In selecting among applications 
for designation of demonstration areas and grants under this 
section, the Secretary shall consider--
            (1) the extent of single family residences located 
        in the proposed area that have rehabilitation needs;
            (2) the ability and expertise of the applicant in 
        carrying out the purposes of the demonstration program, 
        including the availability of qualified housing 
        counselors and contractors in the proposed area willing 
        and able to participate in rehabilitation activities 
        funded with grant amounts;
            (3) the extent to which the designation of such 
        area and the grant award would promote affordable 
        housing opportunities;
            (4) the extent to which selection of the proposed 
        area would have a beneficial effect on the neighborhood 
        or community in the area and on surrounding areas;
            (5) the extent to which the applicant has 
        demonstrated that grant amounts will be used to 
        leverage additional public or private funds to carry 
        out the purposes of the demonstration program;
            (6) the extent to which lenders (including local 
        lenders and lenders outside the proposed area) are 
        willing and able to make loans for rehabilitation 
        activities assisted with grant funds; and
            (7) the extent to which the application provides 
        for the involvement of local residents in the planning 
        of rehabilitation activities in the demonstration area.
    (d) Use of Grant Funds.--Funds from grants made under this 
section may be used by grantees--
            (1) to subsidize interest on loans, over a period 
        of not more than 5 years from the origination date of 
        the loan, made after the date of the enactment of this 
        Act for rehabilitation of any owner-occupied 1- to 4-
        family residence, including the payment of interest 
        during any period in which a residence is uninhabitable 
        because of rehabilitation activities;
            (2) to facilitate loans for rehabilitation of 1- to 
        4-family properties previously subject to a mortgage 
        insured under the National Housing Act that has been 
        foreclosed or for which insurance benefits have been 
        paid, including to establish revolving loan funds, loan 
        loss reserves, and other financial structures; and
            (3) to provide technical assistance in conjunction 
        with the rehabilitation of owner-occupied 1- to 4-
        family residences, including counseling, selection 
        contractors, monitoring of work, approval of contractor 
        payments, and final inspection of work.
    (e) Definition of Rehabilitation.--For purposes of this 
section, the term ``rehabilitation'' has the meaning given such 
term in section 203(k)(2)(B) of the National Housing Act (12 
U.S.C. 1709(k)(2)(B)).
    (f) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary to carry out this section 
such sums as may be necessary for each of fiscal years 1999 
through 2003.
    (g) Effective Date.--This section shall take effect on the 
date of the enactment of this Act.

SEC. 599H. ASSISTANCE FOR CERTAIN LOCALITIES.

    (a) Use of HOME Funds for Public Housing Modernization.--
Notwithstanding section 212(d)(5) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(d)(5)), 
amounts made available to the City of Bismarck, North Dakota or 
the State of North Dakota, under subtitle A of title II of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12741 et seq.) for fiscal year 1998, 1999, 2000, 2001, or 2002, 
may be used to carry out activities authorized under section 14 
of the United States Housing Act of 1937 (42 U.S.C. 1437l) for 
the purpose of modernizing the Crescent Manor public housing 
project located at 107 East Bowen Avenue, in Bismarck, North 
Dakota, if--
            (1) the Burleigh County Housing Authority (or any 
        successor public housing agency that owns or operates 
        the Crescent Manor public housing project) has 
        obligated all other Federal assistance made available 
        to that public housing agency for that fiscal year; or
            (2) the Secretary of Housing and Urban Development 
        authorizes the use of those amounts for the purpose of 
        modernizing that public housing project, which 
        authorization may be made with respect to 1 or more of 
        those fiscal years.
    (b) Consultation With Affected Areas in Settlement of 
Litigation.--In negotiating any settlement of, or consent 
decree for, significant litigation regarding public housing or 
section 8 tenant-based assistance that involves the Secretary 
and any public housing agency or any unit of general local 
government, the Secretary shall seek the views of any units of 
general local government and public housing agencies having 
jurisdictions that are adjacent to the jurisdiction of the 
public housing agency involved, if the resolution of such 
litigation would involve the acquisition or development of 
public housing dwelling units or the use of vouchers under 
section 8 of the United States Housing Act of 1937 in 
jurisdictions that are adjacent to the jurisdiction of the 
public housing agency involved in the litigation.
    (c) Treatment of PHA Repayment Agreement.--
            (1) Limitation on secretary.--During the 2-year 
        period beginning on the date of the enactment of this 
        Act, if the Housing Authority of the City of Las Vegas, 
        Nevada, is otherwise in compliance with the Repayment 
        Lien Agreement and Repayment Plan approved by the 
        Secretary on February 12, 1997, the Secretary of 
        Housing and Urban Development shall not take any action 
        that has the effect of reducing the inventory of senior 
        citizen housing owned by such housing authority that 
        does not receive assistance from the Department of 
        Housing and Urban Development.
            (2) Alternative repayment options.--During the 
        period referred to in paragraph (1), the Secretary 
        shall assist the housing authority referred to in such 
        paragraph to identify alternative repayment options to 
        the plan referred to in such paragraph and to execute 
        an amended repayment plan that will not adversely 
        affect the housing referred to in such paragraph.
            (3) Rule of construction.--This subsection may not 
        be construed to alter--
                    (A) any lien held by the Secretary pursuant 
                to the agreement referred to in paragraph (1); 
                or
                    (B) the obligation of the housing authority 
                referred to in paragraph (1) to close all 
                remaining items contained in the Inspector 
                General audits numbered 89 SF 1004 (issued 
                January 20, 1989), 93 SF 1801 (issued October 
                30, 1993), and 96 SF 1002 (issued February 23, 
                1996).
    (d) Ceiling Rents for Certain Section 8 Properties.--
Notwithstanding any other provision of law, within 30 days 
after the date of the enactment of this Act, the Secretary 
shall establish ceiling rents for the Marshall Field Garden 
Apartments Homes in Chicago, Illinois, at rent levels, in the 
determination of the Secretary made in consultation with the 
owner, that facilitate retaining or attracting working class 
families.
    (e) Application for Moving to Work Demonstration Program.--
Upon the submission of an application for participation in the 
moving to work demonstration program under section 204 of the 
Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1996 
(as contained in section 101(e) of the Omnibus Consolidated 
Rescissions and Appropriations Act of 1996; 42 U.S.C. 1437f 
note) by the Charlotte Housing Authority of Charlotte, North 
Carolina, or the Housing Authority of the City of Pittsburgh, 
Pennsylvania, the Secretary of Housing and Urban Development 
shall--
            (1) consider such application, notwithstanding--
                    (A) the limitation under subsection (b) of 
                such section on the number of public housing 
                agencies that may participate in such program; 
                or
                    (B) any limitation regarding the date for 
                the submission of applications for 
                participation in such program; and
            (2) approve or disapprove the application based on 
        the criteria for selection for participation in such 
        program, notwithstanding the limitations referred to in 
        paragraph (1) of this subsection.
    (f) Use of Project to Benefit Low-Income Persons.--The 
project funded by the Secretary of Housing and Urban 
Development under the supportive housing program of title IV of 
the Stewart B. McKinney Homeless Assistance Act through grant 
number FL 29T90-1285 (commonly known as Royal Pointe) shall be 
considered to have been approved pursuant to section 423(b)(3) 
of such Act as of December 31, 1995 for use for the direct 
benefit of low-income persons.
    (g) Rural Housing Assistance.--The last sentence of section 
520 of the Housing Act of 1949 (42 U.S.C. 1490) is amended by 
inserting before the period the following: ``, and the city of 
Altus, Oklahoma, shall be considered a rural area for purposes 
of this title until the receipt of data from the decennial 
census in the year 2000''.
    (h) Funding for Purchase and Conversion of Existing 
Assisted Housing.--Notwithstanding any other provision of law, 
and only to the extent specifically provided in a subsequent 
appropriations Act, from any amounts previously appropriated 
for Annual Contributions for Assisted Housing or for the Public 
Housing Capital Fund and not obligated by the Secretary, the 
Secretary may make available to the Lockport Housing Authority 
in Lockport, New York, such sums as may be necessary for use in 
accordance with section 5 of the United States Housing Act of 
1937 (42 U.S.C. 1437c) for the purchase and rehabilitation of a 
project that is assisted under section 8 of such Act and 
located on a site contiguous to the site of a public housing 
project administered by the agency.
    (i) Rural and Tribal Assistance.--From the amounts that 
were made available to the Secretary under the Departments of 
Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1998, for grants for 
rural and tribal areas pursuant to the 5th undesignated 
paragraph of the heading ``Community Planning and Development--
community development block grant programs'' (Public Law 105-
65; 111 Stat. 1357), the Secretary shall provide from any 
amounts remaining unobligated--
            (1) $2,800,000 for seed money for a multi-State 
        rural homeownership campaign administered by the Rural 
        Opportunities Affordable Housing Finance Alliance; and
            (2) $500,000 to the Rural Housing Institute of the 
        Muscatine Center for Strategic Action.
    Notwithstanding any other provision of this Act, this 
subsection shall take affect only to the extent specifically 
provided in a subsequent appropriations Act.
    (j) Community Services Demonstration.--
            (1) Authority.--The Secretary of Housing and Urban 
        Development shall, to the extent amounts are 
        appropriated to carry out this subsection, provide 
        financial assistance to the Bethune-Cookman College in 
        Volusia County, Florida (in this subsection referred to 
        as the ``College''), in accordance with the provisions 
        of this subsection, for the College to establish and 
        operate, as a national demonstration, the Bethune-
        Cookman Community Services Student Union Center.
            (2) Use.--Any financial assistance provided to the 
        College pursuant to this subsection shall be used by 
        the College for the construction, maintenance, and 
        endowment of the Bethune-Cookman Community Services 
        Student Union Center through--
                    (A) the acquisition of necessary equipment, 
                including utility vehicles; or
                    (B) the acquisition of necessary real 
                property;
            (3) Application.--The Secretary shall provide 
        financial assistance under this subsection only 
        pursuant to application by the College for such 
        assistance at such time, in such manner, and providing 
        such information as the Secretary of Housing and Urban 
        Development may reasonably require.
            (4) Authorization of Appropriations.--There are 
        authorized to be appropriated such sums as may be 
        necessary for assistance under this subsection. Any 
        amounts appropriated pursuant to this subsection shall 
        remain available until expended.
    (k) Independence Square Foundation.--Notwithstanding any 
other provision of law, including 28 U.S.C. 516, the Secretary 
of Housing and Urban Development shall enforce the use 
agreement entered into between the Secretary and the 
Independence Square Foundation of Newport, Rhode Island: 
Provided further, That such enforcement shall include the 
option of instituting civil litigation to determine the current 
applicability of the aforementioned use agreement or petition 
for the issuance of an injunction to prevent the demolition of 
the property subject to the aforementioned use agreement.
    (l) Removal of HOPE VI Demolition Requirement.--The 
Secretary may approve otherwise qualified applications received 
in response to a notice published at 63 Federal Register 15489 
(March 31, 1998) for grants from the $26,000,000 set-aside of 
amounts made available under the head ``REVITALIZATION OF 
SEVERELY DISTRESSED PUBLIC HOUSING (HOPE VI)'' in the 
Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1998 
(Public Law 105-65, 111 Stat. 1354) without regard to whether 
such applications propose or plan demolition of obsolete public 
housing projects.
    (m) Effective Date.--This section shall take effect on, and 
the amendments made by this section are made on, and shall 
apply beginning upon, the date of the enactment of this Act.

               TITLE VI--FHA PROPERTY DISPOSITION REFORM

SEC. 601. SINGLE FAMILY CLAIMS REFORM AND SALE OF PROPERTY.

    (a) Revision of Claims Procedures.--Section 204 of the 
National Housing Act (12 U.S.C. 1710) is amended by striking 
``Sec. 204.'' and all that follows through the end of 
subsection (a) and inserting the following:
    ``Sec. 204. (a) In General.--
            ``(1) Authorized claims procedures.--The Secretary 
        may, in accordance with this subsection and terms and 
        conditions prescribed by the Secretary, pay insurance 
        benefits to a mortgagee for any mortgage insured under 
        section 203 through any of the following methods:
                    ``(A) Assignment of mortgage.--The 
                Secretary may pay insurance benefits whenever a 
                mortgage has been in a monetary default for not 
                less than 3 full monthly installments or 
                whenever the mortgagee is entitled to 
                foreclosure for a nonmonetary default. 
                Insurance benefits shall be paid pursuant to 
                this subparagraph only upon the assignment, 
                transfer, and delivery to the Secretary of--
                            ``(i) all rights and interests 
                        arising under the mortgage;
                            ``(ii) all claims of the mortgagee 
                        against the mortgagor or others arising 
                        out of the mortgage transaction;
                            ``(iii) title evidence satisfactory 
                        to the Secretary; and
                            ``(iv) such records relating to the 
                        mortgage transaction as the Secretary 
                        may require.
                    ``(B) Conveyance of title to property.--The 
                Secretary may pay insurance benefits if the 
                mortgagee has acquired title to the mortgaged 
                property through foreclosure or has otherwise 
                acquired such property from the mortgagor after 
                a default upon--
                            ``(i) the prompt conveyance to the 
                        Secretary of title to the property 
                        which meets the standards of the 
                        Secretary in force at the time the 
                        mortgage was insured and which is 
                        evidenced in the manner provided by 
                        such standards; and
                            ``(ii) the assignment to the 
                        Secretary of all claims of the 
                        mortgagee against the mortgagor or 
                        others, arising out of mortgage 
                        transaction or foreclosure proceedings, 
                        except such claims as may have been 
                        released with the consent of the 
                        Secretary.
                The Secretary may permit the mortgagee to 
                tender to the Secretary a satisfactory 
                conveyance of title and transfer of possession 
                directly from the mortgagor or other 
                appropriate grantor, and may pay to the 
                mortgagee the insurance benefits to which it 
                would otherwise be entitled if such conveyance 
                had been made to the mortgagee and from the 
                mortgagee to the Secretary.
                    ``(C) Claim without conveyance of title.--
                The Secretary may pay insurance benefits upon 
                sale of the mortgaged property at foreclosure 
                where such sale is for at least the fair market 
                value of the property (with appropriate 
                adjustments), as determined by the Secretary, 
                and upon assignment to the Secretary of all 
                claims referred to in clause (ii) of 
                subparagraph (B).
                    ``(D) Preforeclosure sale.--The Secretary 
                may pay insurance benefits upon the sale of the 
                mortgaged property by the mortgagor after 
                default and the assignment to the Secretary of 
                all claims referred to in clause (ii) of 
                subparagraph (B), if--
                            ``(i) the sale of the mortgaged 
                        property has been approved by the 
                        Secretary;
                            ``(ii) the mortgagee receives an 
                        amount at least equal to the fair 
                        market value of the property (with 
                        appropriate adjustments), as determined 
                        by the Secretary; and
                            ``(iii) the mortgagor has received 
                        an appropriate disclosure, as 
                        determined by the Secretary.
            ``(2) Payment for loss mitigation.--The Secretary 
        may pay insurance benefits to the mortgagee to 
        recompense the mortgagee for all or part of any costs 
        of the mortgagee for taking loss mitigation actions 
        that provide an alternative to foreclosure of a 
        mortgage that is in default (including but not limited 
        to actions such as special forbearance, loan 
        modification, and deeds in lieu of foreclosure, but not 
        including assignment of mortgages to the Secretary 
        under section 204(a)(1)(A)). No actions taken under 
        this paragraph, nor any failure to act under this 
        paragraph, by the Secretary or by a mortgagee shall be 
        subject to judicial review.
            ``(3) Determination of claims procedure.--The 
        Secretary shall publish guidelines for determining 
        which of the procedures for payment of insurance under 
        paragraph (1) are available to a mortgagee when it 
        claims insurance benefits. At least one of the 
        procedures for payment of insurance benefits specified 
        in paragraph (1)(A) or (1)(B) shall be available to a 
        mortgagee with respect to a mortgage, but the same 
        procedure shall not be required to be available for all 
        of the mortgages held by a mortgagee.
            ``(4) Servicing of assigned mortgages.--If a 
        mortgage is assigned to the Secretary under paragraph 
        (1)(A), the Secretary may permit the assigning 
        mortgagee or its servicer to continue to service the 
        mortgage for reasonable compensation and on terms and 
        conditions determined by the Secretary. Neither the 
        Secretary nor any servicer of the mortgage shall be 
        required to forbear from collection of amounts due 
        under the mortgage or otherwise pursue loss mitigation 
        measures.
            ``(5) Calculation of insurance benefits.--Insurance 
        benefits shall be paid in accordance with section 520 
        and shall be equal to the original principal obligation 
        of the mortgage (with such additions and deductions as 
        the Secretary determines are appropriate) which was 
        unpaid upon the date of--
                    ``(A) assignment of the mortgage to the 
                Secretary;
                    ``(B) the institution of foreclosure 
                proceedings;
                    ``(C) the acquisition of the property after 
                default other than by foreclosure; or
                    ``(D) sale of the mortgaged property by the 
                mortgagor.
            ``(6) Forbearance and recasting after default.--The 
        mortgagee may, upon such terms and conditions as the 
        Secretary may prescribe--
                    ``(A) extend the time for the curing of the 
                default and the time for commencing foreclosure 
                proceedings or for otherwise acquiring title to 
                the mortgaged property, to such time as the 
                mortgagee determines is necessary and desirable 
                to enable the mortgagor to complete the 
                mortgage payments, including an extension of 
                time beyond the stated maturity of the 
                mortgage, and in the event of a subsequent 
                foreclosure or acquisition of the property by 
                other means the Secretary may include in the 
                amount of insurance benefits an amount equal to 
                any unpaid mortgage interest; or
                    ``(B) provide for a modification of the 
                terms of the mortgage for the purpose of 
                recasting, over the remaining term of the 
                mortgage or over such longer period pursuant to 
                guidelines as may be prescribed by the 
                Secretary, the total unpaid amount then due, 
                with the modification to become effective 
                currently or to become effective upon the 
                termination of an agreed-upon extension of the 
                period for curing the default; and the 
                principal amount of the mortgage, as modified, 
                shall be considered the `original principal 
                obligation of the mortgage' for purposes of 
                paragraph (5).
            ``(7) Termination of premium obligation.--The 
        obligation of the mortgagee to pay the premium charges 
        for insurance shall cease upon fulfillment of the 
        appropriate requirements under which the Secretary may 
        pay insurance benefits, as described in paragraph (1). 
        The Secretary may also terminate the mortgagee's 
        obligation to pay mortgage insurance premiums upon 
        receipt of an application filed by the mortgagee for 
        insurance benefits under paragraph (1), or in the event 
        the contract of insurance is terminated pursuant to 
        section 229.
            ``(8) Effect on payment of insurance benefits under 
        section 230.--Nothing in this section shall limit the 
        authority of the Secretary to pay insurance benefits 
        under section 230.
            ``(9) Treatment of mortgage assignment program.--
        Notwithstanding any other provision of law, or the 
        Amended Stipulation entered as a consent decree on 
        November 8, 1979, in Ferrell v. Cuomo, No. 73 C 334 
        (N.D. Ill.), or any other order intended to require the 
        Secretary to operate the program of mortgage assignment 
        and forbearance that was operated by the Secretary 
        pursuant to the Amended Stipulation and under the 
        authority of section 230, prior to its amendment by 
        section 407(b) of The Balanced Budget Downpayment Act, 
        I (Public Law 104-99; 110 Stat. 45), no mortgage 
        assigned under this section may be included in any 
        mortgage foreclosure avoidance program that is the same 
        or substantially equivalent to such a program of 
        mortgage assignment and forbearance.''.
    (b) Effective Date.--The Secretary shall publish a notice 
in the Federal Register stating the effective date of the terms 
and conditions prescribed by the Secretary under section 
204(a)(1) of the National Housing Act, as amended by subsection 
(a) of this section. Subsections (a) and (k) of section 204 of 
the National Housing Act, as in effect immediately before such 
effective date, shall continue to apply to any mortgage insured 
under section 203 of the National Housing Act before such 
effective date, except that the Secretary may, at the request 
of the mortgagee, pay insurance benefits as provided in 
subparagraphs (A) and (D) of section 204(a)(1) of such Act to 
calculate insurance benefits in accordance with section 
204(a)(5) of such Act.
    (c) Repeal of Redundant Provision.--Subsection (k) of 
section 204 of the National Housing Act (12 U.S.C. 1710(k)) is 
hereby repealed.
    (d) Authority To Sell.--Section 204(g) of the National 
Housing Act (12 U.S.C. 1710(g)) is amended by adding at the end 
the following new sentence: ``The Secretary may sell real and 
personal property acquired by the Secretary pursuant to the 
provisions of this Act on such terms and conditions as the 
Secretary may prescribe.''.
    (e) Authority To Insure Mortgage.--Section 223(c) of the 
National Housing Act (12 U.S.C. 1715n(c)) is amended--
            (1) by striking ``him'' each place it appears and 
        inserting ``the Secretary''; and
            (2) by inserting before ``of any property 
        acquired'', the following: ``, including a sale through 
        another entity acting under authority of the fourth 
        sentence of section 204(g),''.
    (f) Loss Mitigation.--Section 230 of the National Housing 
Act is amended--
            (1) by redesignating subsections (a) through (e) as 
        (b) through (f); and
            (2) by inserting a new subsection (a) as follows:
    ``(a) Upon default of any mortgage insured under this 
title, mortgagees shall engage in loss mitigation actions for 
the purpose of providing an alternative to foreclosure 
(including but not limited to actions such as special 
forbearance, loss modification, and deeds in lieu of 
foreclosure, but not including assignment of mortgages to the 
Secretary under section 204(a)(1)(A)) as provided in 
regulations by the Secretary.''.
    (g) Penalty.--Section 536(a) of the National Housing Act is 
amended by inserting at the end of paragraph (2) the following:
    ``In the case of the mortgagee's failure to engage in loss 
mitigation activities, as provided in section 536(b)(1)(I), the 
penalty shall be in the amount of three times the amount of any 
insurance benefits claimed by the mortgagee with respect to any 
mortgage for which the mortgagee failed to engage in such loss 
mitigation actions.''.
    (h) Violation.--Section 536(b)(1) of the National Housing 
Act is amended by inserting after subparagraph (h) the 
following:
    ``(I) Failure to engage in loss mitigation actions as 
provided in section 230(a) of this Act.''.

SEC. 602. DISPOSITION OF HUD-OWNED SINGLE FAMILY ASSETS IN 
                    REVITALIZATION AREAS.

    Section 204 of the National Housing Act (12 U.S.C. 1710) is 
amended--
            (1) by redesignating subsection (h) as subsection 
        (i); and
            (2) by inserting after subsection (g) the following 
        new subsection:
    ``(h) Disposition of Assets in Revitalization Areas.--
            ``(1) In general.--The purpose of this subsection 
        is to require the Secretary to carry out a program 
        under which eligible assets (as such term is defined in 
        paragraph (2)) shall be made available for sale in a 
        manner that promotes the revitalization, through 
        expanded homeownership opportunities, of revitalization 
        areas. Notwithstanding the authority under the last 
        sentence of subsection (g), the Secretary shall dispose 
        of all eligible assets under the program and shall 
        establish the program in accordance with the 
        requirements under this subsection.
            ``(2) Eligible assets.--For purposes of this 
        subsection, the term `eligible asset' means any of the 
        following assets of the Secretary:
                    ``(A) Properties.--Any property that--
                            ``(i) is designed as a dwelling for 
                        occupancy by 1 to 4 families;
                            ``(ii) is located in a 
                        revitalization area;
                            ``(iii) was previously subject to a 
                        mortgage insured under the provisions 
                        of this Act; and
                            ``(iv) is owned by the Secretary 
                        pursuant to the payment of insurance 
                        benefits under this Act.
                    ``(B) Mortgages.--Any mortgage that--
                            ``(i) is an interest in a property 
                        that meets the requirements of clauses 
                        (i) and (ii) of subparagraph (A);
                            ``(ii) was previously insured under 
                        the provisions of this Act; and
                            ``(iii) is held by the Secretary 
                        pursuant to the payment of insurance 
                        benefits under this Act.
                For purposes of this subsection, an asset under 
                this subparagraph shall be considered to be 
                located in a revitalization area, or in the 
                asset control area of a preferred purchaser, if 
                the property described in clause (i) is located 
                in such area.
                    ``(C) Future interests.--Any contingent 
                future interest of the Secretary in an asset 
                described in subparagraph (A) or (B).
            ``(3) Revitalization areas.--The Secretary shall 
        designate areas as revitalization areas for purposes of 
        this subsection. Before designation of an area as a 
        revitalization area, the Secretary shall consult with 
        affected units of general local government and 
        interested nonprofit organizations. The Secretary may 
        designate as revitalization areas only areas that meet 
        one of the following requirements:
                    ``(A) Very-low income area.--The median 
                household income for the area is less than 60 
                percent of the median household income for--
                            ``(i) in the case of any area 
                        located within a metropolitan area, 
                        such metropolitan area; or
                            ``(ii) in the case of any area not 
                        located within a metropolitan area, the 
                        State in which the area is located.
                    ``(B) High concentration of eligible 
                assets.--A high rate of default or foreclosure 
                for single family mortgages insured under the 
                National Housing Act has resulted, or may 
                result, in the area--
                            ``(i) having a disproportionately 
                        high concentration of eligible assets, 
                        in comparison with the concentration of 
                        such assets in surrounding areas; or
                            ``(ii) being detrimentally impacted 
                        by eligible assets in the vicinity of 
                        the area.
                    ``(C) Low home ownership rate.--The rate 
                for home ownership of single family homes in 
                the area is substantially below the rate for 
                homeownership in the metropolitan area.
            ``(4) Preference for sale to preferred 
        purchasers.--The Secretary shall provide a preference, 
        among prospective purchasers of eligible assets, for 
        sale of such assets to any purchaser who--
                    ``(A) is--
                            ``(i) the unit of general local 
                        government having jurisdiction with 
                        respect to the area in which are 
                        located the eligible assets to be sold; 
                        or
                            ``(ii) a nonprofit organization;
                    ``(B) in making a purchase under the 
                program under this subsection--
                            ``(i) establishes an asset control 
                        area, which shall be an area that 
                        consists of part or all of a 
                        revitalization area; and
                            ``(ii) purchases all interests of 
                        the Secretary in all assets of the 
                        Secretary that, at any time during the 
                        period which shall be set forth in the 
                        sale agreement required under paragraph 
                        (7)--
                                    ``(I) are or become 
                                eligible assets; and
                                    ``(II) are located in the 
                                asset control area of the 
                                purchaser; and
                    ``(C) has the capacity to carry out the 
                purchase of eligible assets under the program 
                under this subsection and under the provisions 
                of this paragraph.
            ``(5) Agreements required for purchase.--
                    ``(A) Preferred purchasers.--Under the 
                program under this subsection, the Secretary 
                may sell an eligible asset as provided in 
                paragraph (4) to a preferred purchaser only 
                pursuant to a binding agreement by the 
                preferred purchaser that the eligible asset 
                will be used in conjunction with a home 
                ownership plan that provides as follows:
                            ``(i) The plan has as its primary 
                        purpose the expansion of home ownership 
                        in, and the revitalization of, the 
                        asset control area, established 
                        pursuant to paragraph (4)(B)(i) by the 
                        purchaser, in which the eligible asset 
                        is located.
                            ``(ii) Under the plan, the 
                        preferred purchaser has established, 
                        and agreed to meet, specific 
                        performance goals for increasing the 
                        rate of home ownership for eligible 
                        assets in the asset control area that 
                        are under the purchaser's control. The 
                        plan shall provide that the Secretary 
                        may waive or modify such goals or 
                        deadlines only upon a determination by 
                        the Secretary that a good faith effort 
                        has been made in complying with the 
                        goals through the homeownership plan 
                        and that exceptional neighborhood 
                        conditions prevented attainment of the 
                        goal.
                            ``(iii) Under the plan, the 
                        preferred purchaser has established 
                        rehabilitation standards that meet or 
                        exceed the standards for housing 
                        quality established under subparagraph 
                        (B)(iii) by the Secretary, and has 
                        agreed that each asset property for an 
                        eligible asset purchased will be 
                        rehabilitated in accordance with such 
                        standards.
                    ``(B) Non-preferred purchasers.--Under the 
                program under this subsection, the Secretary 
                may sell an eligible asset to a purchaser who 
                is not a preferred purchaser only pursuant to a 
                binding agreement by the purchaser that 
                complies with the following requirements:
                            ``(i) The purchaser has agreed to 
                        meet specific performance goals 
                        established by the Secretary for home 
                        ownership of the asset properties for 
                        the eligible assets purchased by the 
                        purchaser, except that the Secretary 
                        may, by including a provision in the 
                        sale agreement required under paragraph 
                        (7), provide for a lower rate of home 
                        ownership in sales involving 
                        exceptional circumstances.
                            ``(ii) The purchaser has agreed 
                        that each asset property for an 
                        eligible asset purchased will be 
                        rehabilitated to comply with minimum 
                        standards for housing quality 
                        established by the Secretary for 
                        purposes of the program under this 
                        subsection.
            ``(6) Discount for preferred purchasers.--
                    ``(A) In general.--For the purpose of 
                providing a public purpose discount for the 
                bulk sales of eligible assets made under the 
                program under this subsection by preferred 
                purchasers, each eligible asset sold through 
                the program under this subsection to a 
                preferred purchaser shall be sold at a price 
                that is discounted from the value of the asset, 
                as based on the appraised value of the asset 
                property (as such term is defined in paragraph 
                (8)).
                    ``(B) Appraisals.--The Secretary shall 
                require that each appraisal of an eligible 
                asset under this paragraph is based upon--
                            ``(i) the market value of the asset 
                        property in its `as is' physical 
                        condition, which shall take into 
                        consideration age and condition of 
                        major mechanical and structural 
                        systems; and
                            ``(ii) the value of the property 
                        appraised for home ownership.
                    ``(C) Discount classes.--The Secretary, in 
                the sole discretion of the Secretary, shall 
                establish the discount under this paragraph for 
                an eligible asset, which shall be in one of the 
                following amounts:
                            ``(i) Standard discount.--In the 
                        case only of eligible assets with asset 
                        properties that, at the time of sale 
                        under this subsection, do not meet the 
                        standards for housing quality 
                        established pursuant to paragraph 
                        (5)(B)(ii), an amount that--
                                    ``(I) is appropriate to 
                                provide reasonable resources 
                                for the improvement such 
                                assets; and
                                    ``(II) takes into 
                                consideration the financial 
                                safety and soundness of the 
                                Mutual Mortgage Insurance Fund.
                            ``(ii) Deep discount.--In the case 
                        only of eligible assets described in 
                        clause (i) for which the Secretary 
                        determines a deep discount is 
                        appropriate, an amount that exceeds the 
                        amount of a standard discount under 
                        clause (i). In making a determination 
                        whether a deep discount is appropriate, 
                        the Secretary may consider the 
                        condition of the asset property, the 
                        extent of resources available to the 
                        preferred purchaser, the comprehensive 
                        revitalization plan undertaken by such 
                        purchaser, or any other circumstances 
                        the Secretary considers appropriate.
                            ``(iii) Minimal discount.--In the 
                        case only of eligible assets with asset 
                        properties that, at the time of sale 
                        under this subsection, meet or 
                        substantially meet the standards for 
                        housing quality established pursuant to 
                        paragraph (5)(B)(ii), an amount that is 
                        less than the amount of a standard 
                        discount under clause (i) of this 
                        subparagraph and is sufficient to 
                        provide assistance to the preferred 
                        purchaser in meeting costs associated 
                        with compliance with the program 
                        requirements under this subsection.
                    ``(D) Determination of discount class.--The 
                Secretary shall, in the sole discretion of the 
                Secretary, establish a method for determining 
                which discount under clause (i) or (ii) 
                subparagraph (C) shall be provided for an 
                eligible asset that is described in such clause 
                (i) and sold to a preferred purchaser. The 
                method may result in the assignment of 
                discounts on any basis consistent with 
                subparagraph (C) that the Secretary considers 
                appropriate to carry out the purposes of this 
                subsection.
            ``(7) Sale agreement.--The Secretary may sell an 
        eligible asset under this subsection only pursuant to a 
        sale agreement entered into under this paragraph with 
        the purchaser, which shall include the following 
        provisions:
                    ``(A) Assets.--The sale agreement shall 
                identify the eligible assets to be purchased 
                and the interests sold.
                    ``(B) Revitalization area and asset control 
                area.--The sale agreement shall identify--
                            ``(i) the boundaries of the 
                        specific revitalization areas (or 
                        portions thereof) in which are located 
                        the eligible assets that are covered by 
                        the agreement; and
                            ``(ii) in the case of a preferred 
                        purchaser, the asset control area 
                        established pursuant to paragraph 
                        (4)(B)(i) that is covered by the 
                        agreement.
                    ``(C) Financing.--The sale agreement shall 
                identify the sources of financing for the 
                purchase of the eligible assets.
                    ``(D) Binding agreements.--The sale 
                agreement shall contain binding agreements by 
                the purchaser sufficient to comply with--
                            ``(i) in the case of a preferred 
                        purchaser, the requirements under 
                        paragraph (5)(A), which agreements 
                        shall provide that the eligible assets 
                        purchased will be used in conjunction 
                        with a home ownership plan meeting the 
                        requirements of such paragraph, and 
                        shall set forth the terms of the 
                        homeownership plan, including--
                                    ``(I) the goals of the plan 
                                for the eligible assets 
                                purchased and for the asset 
                                control area subject to the 
                                plan;
                                    ``(II) the revitalization 
                                areas (or portions thereof) in 
                                which the homeownership plan is 
                                operating or will operate;
                                    ``(III) the specific use or 
                                disposition of the eligible 
                                assets under the plan; and
                                    ``(IV) any activities to be 
                                conducted and services to be 
                                provided under the plan; or
                            ``(ii) in the case of a purchaser 
                        who is not a preferred purchaser, the 
                        requirements under paragraph (5)(B).
                    ``(E) Purchase price and discount.--The 
                sale agreement shall establish the purchase 
                price of the eligible assets, which in the case 
                of a preferred purchaser shall provide for a 
                discount in accordance with paragraph (6).
                    ``(F) Housing quality.--The sale agreement 
                shall provide for compliance of the eligible 
                assets purchased with the rehabilitation 
                standards established under paragraph 
                (5)(A)(iii) or the minimum standards for 
                housing quality established under paragraph 
                (5)(B)(ii), as applicable, and shall specify 
                such standards.
                    ``(G) Performance goals and sanctions.--The 
                sale agreement shall set forth the specific 
                performance goals applicable to the purchaser, 
                in accordance with paragraph (5), shall set 
                forth any sanctions for failure to meet such 
                goals and deadlines, and shall require the 
                purchaser to certify compliance with such 
                goals.
                    ``(H) Period covered.--The sale agreement 
                shall establish--
                            ``(i) in the case of a preferred 
                        purchaser, the time period referred to 
                        in paragraph (4)(B)(ii); and
                            ``(ii) in the case of a purchaser 
                        who is not a preferred purchaser, the 
                        time period for purchase of eligible 
                        assets that may be covered by the 
                        purchase.
                    ``(I) Other terms.--The agreement shall 
                contain such other terms and conditions as may 
                be necessary to require that eligible assets 
                purchased under the agreement are used in 
                accordance with the program under this 
                subsection.
            ``(8) Definitions.--For purposes of this 
        subsection, the following definitions shall apply:
                    ``(A) Asset control area.--The term `asset 
                control area' means the area established by a 
                preferred purchaser pursuant to paragraph 
                (4)(B)(i).
                    ``(B) Asset property.--The term `asset 
                property' means--
                            ``(i) with respect to an eligible 
                        asset that is a property, such 
                        property; and
                            ``(ii) with respect to an eligible 
                        asset that is a mortgage, the property 
                        that is subject to the mortgage.
                    ``(C) Eligible asset.--The term `eligible 
                asset' means an asset described in paragraph 
                (2).
                    ``(D) Nonprofit organization.--The term 
                `nonprofit organization' means a private 
                organization that--
                            ``(i) is organized under State or 
                        local laws;
                            ``(ii) has no part of its net 
                        earnings inuring to the benefit of any 
                        member, shareholder, founder, 
                        contributor, or individual; and
                            ``(iii) complies with standards of 
                        financial responsibility that the 
                        Secretary may require.
                    ``(E) Preferred purchaser.--The term 
                `preferred purchaser' means a purchaser 
                described in paragraph (4).
                    ``(F) Unit of general local government.--
                The term `unit of general local government' 
                means any city, town, township, county, parish, 
                village, or other general purpose political 
                subdivision of a State.
            ``(9) Secretary's discretion.--The Secretary shall 
        have the authority to implement and administer the 
        program under this subsection in such manner as the 
        Secretary may determine. The Secretary may, in the sole 
        discretion of the Secretary, enter into contracts to 
        provide for the proper administration of the program 
        with such public or nonprofit entities as the Secretary 
        determines are qualified.
            ``(10) Regulations.--The Secretary shall issue 
        regulations to implement the program under this 
        subsection through rulemaking in accordance with the 
        procedures established under section 553 of title 5, 
        United States Code, regarding substantive rules. Such 
        regulations shall take effect not later than the 
        expiration of the 2-year period beginning on the date 
        of the enactment of the Departments of Veterans Affairs 
        and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 1999.''.
    Titles I, II, III, IV, and VI of this Act may be cited as 
the ``Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 
1999''.
      And the Senate agree to the same.

                                   Jerry Lewis,
                                   Tom DeLay,
                                   James T. Walsh,
                                   David L. Hobson,
                                   Joe Knollenberg,
                                   R. Frelinghuysen,
                                   Mark W. Neumann,
                                   Roger Wicker,
                                   Bob Livingston,
                                   Louis Stokes,
                                   Alan B. Mollohan,
                                   Marcy Kaptur,
                                   Carrie P. Meek,
                                   David E. Price,
                                   Dave Obey,
                                     Managers on the Part of the House.

                                   Kit Bond,
                                   Conrad Burns,
                                   Ted Stevens,
                                   Richard Shelby,
                                   Ben Nighthorse Campbell,
                                   Larry E. Craig,
                                   Barbara A. Mikulski,
                                   Patrick Leahy,
                                   Frank R. Lautenberg,
                                   Tom Harkin,
                                   Robert C. Byrd,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 4194) making 
appropriations for the Departments of Veterans Affairs and 
Housing and Urban Development, and for sundry independent 
agencies, boards, commissions, corporations, and offices for 
the fiscal year ending September 30, 1999, and for other 
purposes, submit the following joint statement to the House and 
the Senate in explanation of the effect of the action agreed 
upon by the managers and recommended in the accompanying 
report.
      The language and allocations set forth in House Report 
105-610 and Senate Report 105-216 should be complied with 
unless specifically addressed to the contrary in the conference 
report and statement of the managers. Report language included 
by the House which is not changed by the report of the Senate 
or the conference, and Senate report language which is not 
changed by the conference is approved by the committee of 
conference. The statement of the managers, while repeating some 
report language for emphasis, does not intend to negate the 
language referred to above unless expressly provided herein. In 
cases in which the House or Senate have directed the submission 
of a report, such report is to be submitted to both House and 
Senate Committees on Appropriations.

                TITLE I--DEPARTMENT OF VETERANS AFFAIRS

                     Veterans Health Administration

                              MEDICAL CARE

      Appropriates $17,306,000,000 for medical care, instead of 
$17,361,395,998 ($17,057,396,000 in the medical care account 
and an additional $303,999,998 in Sec. 427 of the General 
Provisions) as proposed by the House and $17,250,000,000 as 
proposed by the Senate.
      The amount provided for medical care is an increase of 
$278,025,000 above the VA's budget request and reflects the 
high priority the conferees place on ensuring quality health 
care for veterans. The VA is to propose how it plans to spend 
these additional funds, including the increased number of 
veterans that will be able to receive health care, in the 
operating plan. That plan is to be submitted within 30 days of 
enactment of the appropriations bill.
      Delays the availability of $778,000,000 of the medical 
care appropriation in the equipment and land and structures 
object classifications until August 1, 1999, instead of 
delaying the availability of $777,000,000--a net of 
$846,000,000 in the medical care account and a reduction in 
that amount of $69,000,000 as provided in Sec. 425 of the 
General Provisions--as proposed by the House and $687,000,000 
as proposed by the Senate.
      Deletes language proposed by the House and stricken by 
the Senate earmarking $6,000,000 of the medical care 
appropriation for the Musculoskeletal Disease Center. Funding 
for this activity is included in the medical and prosthetic 
research appropriation.
      Restores language proposed by the House and stricken by 
the Senate transferring not to exceed $22,633,000 from the 
medical care appropriation to the general operating expenses 
appropriation for expenses of the Office of Resolution 
Management (ORM) and the Office of Employment Discrimination 
Complaint Adjudication (OEDCA), amended to transfer not to 
exceed $27,420,000 ($25,690,000 for ORM and $1,730,000 for 
OEDCA). Additional information on funding for these two offices 
is included under the VA's administrative provisions section of 
this report.
      Deletes language proposed by the Senate earmarking 
$14,000,000 for the homeless grant program and $6,000,000 for 
the homeless per diem program, and expanding authorized 
homeless assistance activities. In deleting the bill language, 
the conferees agree that not less than $20,000,000 of fiscal 
year 1999 medical care funds shall be made available for the 
homeless grant and homeless per diem programs.
      Inserts language proposed by the Senate earmarking 
$10,000,000 of fiscal year 1999 medical care funds for 
implementation of the Primary Care Providers Incentive Act, 
contingent upon enactment of authorizing legislation, amended 
to earmark not to exceed $10,000,000.
      The conferees have provided $3,000,000 for the Center of 
Excellence at the Truman Memorial VA Medical Center which would 
support such activities as clinical studies on hypertension, 
surfactants, and lupus erythematosus.
      The conferees note concerns have been expressed that the 
use of local pay surveys may be of questionable validity in 
determining nurse pay rates, and urge the Department to address 
this matter expeditiously. The VA is to prepare a report on its 
plans to address this concern and submit it to the House and 
Senate authorization and appropriations committees by December 
1, 1998.
      The conferees are aware of a recently released General 
Accounting Office report titled ``VA Health Care: More Veterans 
Are Being Served, but Better Oversight Is Needed.'' The VA is 
directed to take immediate steps to implement the report's 
recommendations. The VA is also directed to report to the 
Committees on Appropriations by February 1, 1999 on proposals 
to address the recommendations contained in the report.

                    MEDICAL AND PROSTHETIC RESEARCH

      Appropriates $316,000,000 for medical and prosthetic 
research, instead of $320,000,000 ($310,000,000 in the medical 
and prosthetic research account and an additional $10,000,000 
in Sec. 423 of the General Provisions) as proposed by the House 
and $310,000,000 as proposed by the Senate.
      Inserts language earmarking $6,000,000 of the increase in 
the medical and prosthetic research appropriation for the 
Musculoskeletal Disease Center, instead of earmarking such 
funds in the medical care appropriation as proposed by the 
House. The Senate did not propose such an earmarking of funds.
      Last year's conference agreement included $10,000,000 for 
research into Parkinson's Disease. The conferees agree that the 
VA is to utilize up to $10,000,000 of the recommended increase 
to expand research into Parkinson's Disease.
      The fiscal year 1998 medical and prosthetic research 
appropriation included $12,500,000 for research relating to 
Persian Gulf War illnesses. The conferees expect the VA to 
maintain such research as a high priority in fiscal year 1999.

      MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING EXPENSES

      Appropriates $63,000,000 for medical administration and 
miscellaneous operating expenses, instead of $60,000,000 as 
proposed by the House and the Senate.
      The Under Secretary for Health has identified high 
priority areas that need to be strengthened for better results 
in the delivery of healthcare. To support these higher priority 
activities, VA has started a reduction-in-force in the Office 
of Facilities Management's (OFM) tactical support function. To 
provide time to explore other options for funding these 
services, the conferees have agreed to a one-time increase of 
$3,000,000 to support enhanced clinical, quality and 
performance management activities. The conferees note that 
Price Waterhouse recently completed, at the request of the 
Veterans Health Administration, an independent review of the 
Office of Facilities Management. That review recommended a 
number of changes to improve the management of VA facility 
infrastructure. The conferees expect that the Department will 
develop a plan for implementing Price Waterhouse's 
recommendations, wherever appropriate, and any decisions made 
pursuant to the future of OFM's tactical support functions are 
to be made consistent with that report. The VA is to prepare a 
report for the Committees on Appropriations, to be submitted 
concurrently with the fiscal year 2000 budget request, on its 
long-range plans for the Office of Facilities Management. The 
conferees do not expect that any reductions-in-force will be 
required in fiscal year 1999, unless the VA fails to submit an 
acceptable alternative proposal.

                      Departmental Administration

                       GENERAL OPERATING EXPENSES

      Appropriates $855,661,000 for general operating expenses 
as proposed by the House, instead of $854,661,000 as proposed 
by the Senate.
      The $6,000,000 increase above the budget request is for 
the activities associated with restructuring the Veterans 
Benefits Administration (VBA) so as to improve the timeliness 
and accuracy of processing the various types of claims. The 
average time it currently takes to process claims is not 
acceptable. The availability of the increase is subject to the 
submission of a detailed operating plan for VBA that closely 
follows the recommendations of the National Academy of Public 
Administration.
      In the past, the VA has not had realistic plans to 
improve service delivery to veterans. The VBA should set 
realistic goals for timeliness and accuracy for each different 
type of claim and develop a multi-year plan for attaining these 
goals--commensurate with the level of resources requested and 
planned for the future. Goals and plans should be developed not 
only at the national level, but also for each regional office. 
Regional office directors should then be held accountable for 
achieving those individual goals. The performance among 
regional offices should also be compared. The conferees 
recognize that it will take time to improve the delivery of 
services to veterans, and need plans with annual goals to 
measure the progress realized each year. The VA is to prepare a 
detailed report for the Committees on Appropriations on these 
goals and plans. The report is to be submitted concurrently 
with the fiscal year 2000 budget request.

                        NATIONAL CEMETERY SYSTEM

      Restores language proposed by the House and stricken by 
the Senate transferring not to exceed $86,000 from the national 
cemetery system appropriation to the general operating expenses 
appropriation for expenses of the Office of Resolution 
Management and the Office of Employment Discrimination 
Complaint Adjudication, amended to transfer not to exceed 
$90,000 ($84,000 for ORM and $6,000 for OEDCA). Additional 
information on funding for these two offices is included under 
the VA's administrative provisions section of this report.

                      OFFICE OF INSPECTOR GENERAL

      Appropriates $36,000,000 for the Office of Inspector 
General as proposed by the Senate, instead of $32,702,000 as 
proposed by the House.
      Inserts language transferring not to exceed $30,000 from 
the Office of Inspector General appropriation to the general 
operating expenses appropriation for expenses of the Office of 
Resolution Management ($28,000) and the Office of Employment 
Discrimination Complaint Adjudication ($2,000). Although the 
House and the Senate did not propose similar language, the VA 
planned to seek a small amount of reimbursement for the two new 
offices from this appropriation. Additional information on 
funding for these two offices is included under the VA's 
administrative provisions section of this report.

                      CONSTRUCTION, MAJOR PROJECTS

      Appropriates $142,300,000 for construction, major 
projects as proposed by the Senate, instead of $143,000,000 as 
proposed by the House. The conference agreement includes the 
following changes from the budget estimate:
            +$20,800,000 for ambulatory care improvements at 
        the Louis Stokes Cleveland VA Medical Center.
            +$25,200,000 for construction of an ambulatory care 
        addition at the Tucson VA Medical Center.
            +$7,500,000 for additional gravesite development at 
        the Jefferson Barracks National Cemetery.
            +$9,500,000 for nursing unit renovations at the 
        Lebanon, Pennsylvania VA Medical Center.
            -$17,700,000 from available unobligated balances in 
        the working reserve.
      Inserts language authorizing that not to exceed $125,000 
of unobligated funds in the working reserve in the 
construction, major projects appropriation may be made 
available for necessary expenses of the redevelopment of the 
Pershing Hall building in Paris, France. The conferees expect 
that these funds, and funds previously made available, will be 
totally reimbursed in future years. Although not proposed by 
the House or the Senate, the VA has requested this language.
      The conferees urge the Secretary to establish a new 
national cemetery in Eastern Kentucky. The VA is to utilize 
such sums as may be necessary to initiate the planning phase. 
Planning should include site selection, acquisition, and 
design. A report on the progress of the initial phase of this 
project should be submitted to the Committees on Appropriations 
by March 31, 1999.
      A mental health enhancement project has been proposed by 
Veterans Integrated Service Network 17 for the Dallas VA 
Medical Center. The conferees urge theAdministration to give 
consideration to including $24,200,000 for this project in its fiscal 
year 2000 budget request.

       GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

      Appropriates $90,000,000 for grants for construction of 
state extended care facilities as proposed by the Senate, 
instead of $101,000,000 ($80,000,000 in the grants for 
construction of state extended care facilities account and an 
additional $21,000,000 in Sec. 432 of the General Provisions) 
as proposed by the House.

                       ADMINISTRATIVE PROVISIONS

      Restores language, section 109, proposed by the House and 
stricken by the Senate renaming the Salisbury VA Medical Center 
in North Carolina as the ``W. G. (Bill) Hefner Salisbury 
Department of Veterans Affairs Medical Center.''
      Deletes language proposed by the Senate authorizing the 
reimbursement of expenses for the Office of Resolution 
Management and the Office of Employment Discrimination 
Complaint Adjudication from other VA appropriations beginning 
in fiscal year 1999. Funding for these two offices in fiscal 
year 1999 is provided by language transferring amounts in 
medical care ($27,420,000--$25,690,000 for ORM and $1,730,000 
for OEDCA), national cemetery system ($90,000--$84,000 for ORM 
and $6,000 for OEDCA), and Office of Inspector General 
($30,000--$28,000 for ORM and $2,000 for OEDCA) to the general 
operating expenses appropriation. In addition, $2,209,000 is 
assumed in the general operating expenses appropriation for 
these activities. The House proposed similar transfer language. 
The VA, on an informal basis, has recently indicated the need 
for a 43 percent increase ($9,812,000) above the funding level 
assumed in the fiscal year 1999 budget request for ORM. The 
conferees question the requirement for such a large increase 
and have provided a more realistic addition of 22 percent. All 
funds for these two offices should be requested in the general 
operating expenses appropriation in fiscal year 2000.
      Inserts language, section 110, proposed by the Senate 
authorizing the Secretary of Veterans Affairs to convey land in 
Tuscaloosa County, Alabama, to the University of Alabama.
      Inserts new language, section 111, renaming the Cleveland 
Department of Veterans Affairs Medical Center in Cleveland, 
Ohio, as the ``Louis Stokes Cleveland Department of Veterans 
Affairs Medical Center.'' The conferees are taking this action 
in recognition of Congressman Stokes' long and distinguished 
service in support of veterans and veterans programs.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

      Inserts a modification to Senate report language 
requiring HUD to provide beginning March 1, 1999, an annual 
review of the HUD 2020 plan.
      Deletes direction to HUD to provide a report regarding 
unexpended balances by January 15, 1999, as proposed by the 
House.

                       Public and Indian Housing

                        Housing Certificate Fund

             (Including Transfers and Rescission of Funds)

      Appropriates $10,326,542,030 for the housing certificate 
fund, instead of $10,240,542,030 as proposed by the House and 
$10,013,542,030 as proposed by the Senate. The conference 
agreement includes:
            --$9,600,000,000 for expiring section 8 contracts, 
        as proposed by the House instead of $9,540,000,000 as 
        proposed by the Senate;
            --$0 for section 8 amendments, as proposed by the 
        Senate instead of $97,000,000 as proposed by the House;
            --$10,000,000 for regional opportunity counseling, 
        as proposed by the House instead of $0 as proposed by 
        the Senate; and,
            --$283,000,000 for welfare-to-work section 8 rental 
        assistance vouchers, instead of $100,000,000 as 
        proposed by the House and $40,000,000 as proposed by 
        the Senate.
The conferees agree to fund 50,000 housing vouchers to address 
concerns raised by the Administration that reforms included in 
the public housing legislation attached to thisappropriation 
measure may unduly disadvantage very low-income families on waiting 
lists. Though this is not the intent of the reforms, there is no clear 
data on the potential extent of this problem and the conferees want to 
be sensitive to the inevitable fear of the unknown. Therefore, HUD is 
directed to design a protocol that tracks the impact of the various 
reform measures on very low-income families on waiting lists, to 
analyze the information and to report any findings and conclusions to 
the Senate and House Banking committees and the House and Senate VA, 
HUD and Independent Agencies subcommittees. HUD should brief the 
Committees and Subcommittees about the methodology they plan to utilize 
to meet this request by March 1, 1999.
      Deletes language proposed by the House authorizing HUD to 
waive any administrative requirements or any provision of the 
United States Housing Act of 1937 with regard to welfare-to-
work vouchers.
      Inserts a modification to clarify that the welfare-to-
work program is not intended to exclude families receiving 
time-limited tenant-based rental assistance under state or 
local initiatives.
      Rescinds $1,650,000,000 from excess section 8 funds, 
specifically from section 8 amendments and from the section 8 
moderate rehabilitation program, instead of $1,400,000,000 as 
proposed by the Senate.
      Inserts language proposed by the House to expand tenant 
protection eligibility to families being relocated due to a 
HOPE VI revitalization plan.
      Inserts a modification to report language proposed by the 
House directing rather than urging HUD to revise its 
Performance Plan to incorporate measurable goals and outcomes 
for the welfare-to-work program and to include those goals in 
HUD's 1999 Operating Plan.
      Like the House and Senate bills, the conference agreement 
provides funding for so-called ``enhanced'' or ``sticky'' 
vouchers, to be provided to residents who lose the benefit of 
housing affordability restrictions when owners prepay federally 
assisted mortgages. Because questions have been raised as to 
whether these vouchers are renewable, the conferees would like 
to emphasize their intention that enhanced vouchers (funded 
under this or prior appropriations bills) are renewable from 
year to year under the same terms and conditions, and have 
included language clarifying this point. Because appropriations 
for renewal of section 8 certificates and vouchers are now 
provided on an annual basis, it is not possible for HUD or 
public housing authorities to enter into binding commitments to 
provide this assistance for terms longer than one year. 
However, the Appropriations Committees have made it a high 
priority to ensure that sufficient funding is provided each 
year to allow for renewal of all expiring section 8 assistance, 
including enhanced vouchers.
      The conferees agree to include a technical amendment 
clarifying the terms of enhanced vouchers. Under this 
amendment, if the income of a family with such a voucher drops 
significantly (because of job loss, retirement or death of a 
family member, for example), the rental payment required of 
that family will be reduced, so that the percentage of income 
paid in rent by that family does not exceed the greater of (1) 
the percentage paid in rent before the mortgage prepayment that 
triggered the enhanced voucher, or (2) the normal section 8 
payment standard of 30 percent. The confereesintend HUD to 
issue regulations or other appropriate guidance implementing this 
provision.

                 section 8 reserve preservation account

      Deletes language proposed by the Senate requiring HUD to 
collect amounts recaptured from section 8 tenant-based 
assistance.

                      public housing capital fund

                     (including transfers of funds)

      Appropriates $3,000,000,000 for the public housing 
capital fund, as proposed by the House instead of 
$2,550,000,000 as proposed by the Senate.
      Inserts language, as an administrative provision, 
prohibiting funds from being used to support any units not 
funded prior to October 1, 1998, except for those funded under 
the HOPE VI program. Appropriated amounts for the Capital Fund 
and the Operating Fund are predicated on the current number of 
public housing units. Adding thousands of units of formerly 
state or locally subsidized housing, as included in Title V, 
would cause a significant hardship to existing developments by 
decreasing available funds. This prohibition applies to both 
the Public Housing Capital and Operating Funds.

                     public housing operating fund

      The conferees support the efforts of public housing 
authorities to use private funds to make capital improvements 
in order to lower energy costs and believe this program could 
lead to significant long-term savings for a small investment. 
To accomplish this, HUD should consider the savings that are 
recognized from existing energy performance contracts and 
encourage future contracts under the Performance Funding System 
and the incentives provided by section 118 of the Housing and 
Community Development Act of 1987. In addition, HUD should 
educate field office staff as to the usefulness of this 
program.

             drug elimination grants for low-income housing

                     (including transfer of funds)

      Appropriates $310,000,000 for drug elimination grants, as 
proposed by the Senate instead of $290,000,000 as proposed by 
the House. Of the amount provided, $20,000,000 is for the New 
Approach Anti-Drug program, as proposed by the Senate.
      The conferees are concerned with the overall 
implementation and effectiveness of the New Approach Anti-Drug 
program and, therefore, expect the Department to provide the 
committees with a report on both the implementation and 
effectiveness of the program by May 15, 1999.

          revitalization of severely distressed public housing

                               (HOPE VI)

      Appropriates $625,000,000 for the revitalization of 
severely distressed public housing program, an increase of 
$25,000,000 above the House and Senate recommendations. The 
conferees agree to increase the appropriation in recognition of 
the significant contributions the program makes to replacing 
nonviable public housing with affordable homes and apartment 
buildings that are safe, that fit into the 
neighborhoodlandscape, and that provide needed services for the 
families who live in them. The appropriation includes $15,000,000 for 
technical assistance, as proposed by the Senate instead of $10,000,000 
as proposed by the House.
      Inserts a restriction requiring that funds appropriated 
to this account are used for HOPE VI program activities, as 
proposed by the House.

                  native american housing block grants

                     (including transfers of funds)

      Appropriates $620,000,000 for Native American block 
grants, as proposed by the House instead of $600,000,000 as 
proposed by the Senate.
      Limits the guarantee of the Title VI Indian federal 
guarantees program to $54,600,000, as proposed by the House 
instead of $217,000,000 as proposed by the Senate.
      Transfers $200,000 to salaries and expenses for 
administrative costs associated with the Title VI guarantee 
program, as proposed by the House.
      Directs HUD to provide annual, rather than semi-annual, 
reports to the Committees evaluating the Native American 
housing block grant program.

           indian housing loan guarantee fund program account

                     (including transfer of funds)

      Transfers $400,000 to salaries and expenses for 
administrative costs associated with the Indian housing loan 
guarantee program, as proposed by the House.

                 rural housing and economic development

      Appropriates $25,000,000 for rural housing and economic 
development, instead of $35,000,000 as proposed by the Senate. 
The conference agreement provides:
            --$4,000,000 for capacity building at the state and 
        local level, of which $1,000,000 is for development of 
        a clearinghouse of ideas for innovative strategies for 
        rural housing and economic development and $3,000,000 
        is for direct capacity building funding to local rural 
        nonprofits, community development corporations and 
        Indian tribes; and,
            --$21,000,000 to fund Indian tribes, state housing 
        finance agencies, state community and/or economic 
        development agencies, local rural nonprofits and 
        community development corporations for innovative 
        housing and economic development activities in rural 
        areas. Of this amount, $5,000,000 is for seed funding 
        for Indian tribes, nonprofits and community development 
        corporations that are located in areas that have 
        limited capacity for the development of rural housing 
        and for economic development.
      The conferees urge HUD, in consultation with USDA, to 
award these funds not necessarily to the poorest of all 
communities, but to develop balanced guidelines that recognize 
need but also that recognize those grantees and projects that 
are innovative and forward-looking and that can be duplicated 
as a successful model to meet rural needs throughout the 
country.

                   Community Planning and Development

              Housing Opportunities for Persons with Aids

      Appropriates $215,000,000 for housing opportunities for 
persons with AIDS, instead of $204,000,000 as proposed by the 
House and $225,000,000 as proposed by the Senate.
      Deletes language proposed by the Senate requiring HUD to 
submit a report to Congress summarizing all technical 
assistance provided in this account. The conferees, however, 
direct HUD to provide this information to the VA, HUD and 
Independent Agencies Subcommittees.
      The conferees agree to reiterate the request, proposed in 
both the House and Senate reports, for a reexamination of this 
program--particularly its formula for distributing funds.
      Under current law, 90 percent of HOPWA funds are 
distributed on a formula basis. States and metropolitan areas 
qualify for funding when the cumulative number of AIDS cases in 
the locality exceeds 1,500. Three quarters of the formula funds 
are then distributed among all qualifying states and 
metropolitan areas based on proportionate shares of cumulative 
cases. The remaining one quarter is distributed to qualifying 
metropolitan areas with above-average current incidence of 
AIDS.
      This approach of giving states and metro areas 
entitlement to a portion of formula funds when the cumulative 
number of AIDS cases (since the early 1980s) crosses a fixed 
numerical threshold leads to an increase in the number of 
qualifying jurisdictions each year. This requires available 
funds to be spread more thinly each year. The rising number of 
qualifying jurisdictions is a major reason why the 
Appropriations Committees have sought to provide annual 
increases for this program, but the conferees are not at all 
confident that budgetary conditions will allow future funding 
to keep pace with the annual increases in eligible 
jurisdictions.
      In addition, as more metro areas cross the threshold and 
qualify, the rest of the state often loses all funding, as 
subtracting the metro area often brings the number of cases in 
the balance of the state below the threshold. The conferees 
have once again included temporary grandfathering language to 
preserve funding for another year for states caught in these 
circumstances, but believe a more permanent solution is needed.
      The conferees appreciate the detailed report submitted by 
the Department in response to requests in last year's 
appropriations reports. However, that report recommended 
against a change in the formula, primarily because of the 
importance of maintaining stability in this program. The 
conferees recognize the virtue of stability, but point out that 
aspects of the present system are not particularly stable--in 
fact, the ``bonus'' portion of the formula (the portion that 
uses current incidences of AIDS cases relative to the current 
national average) produces wide annual swings in funding for 
some jurisdictions. More importantly, as noted above, the 
conferees are concerned that the present system cannot be 
sustained without annual appropriations increases larger than 
can be realistically expected.
      For all these reasons, the conferees urge the authorizing 
committees, the Department, and the AIDS housing community to 
consider whether it is time to redesign the basic funding 
formulas for the HOPWA program--giving particular attention to 
means of basing eligibility and allocations on better measures 
of relative current need, and perhaps also considering whether 
a competitive element should be introduced so as to channel 
some extra funds to areas with particularly well developed and 
successful programs.
      None of the above is intended to express doubt concerning 
the very real needs that the HOPWA program serves. Rather, the 
conferees are concerned that the current funding approach may 
be unsustainable and anxious that scarce funding be distributed 
so as to address the highest priority needs and reward the best 
performing programs.

                   Community Development Block Grants

                     (Including transfers of funds)

      Appropriates $4,750,000,000 for community development 
grants, as proposed by the Senate instead of $4,725,000,000 as 
proposed by the House. The conferees agree to the following 
earmarks:
            --$50,000,000 for section 107 grants, as proposed 
        by the House instead of $32,000,000 as proposed by the 
        Senate. The conference agreement provides the following 
        earmarks:
                    --$3,000,000 is for community development 
                work study,
                    --$10,000,000 is for historically black 
                colleges and universities with $1,000,000 for 
                Dillard University in New Orleans, Louisiana,
                    --$7,500,000 is for the Community Outreach 
                Partnerships program,
                    --$7,000,000 is for insular areas,
                    --$7,500,000 is for technical assistance,
                    --$8,500,000 is for management information 
                systems, and
                    --$6,500,000 is for Hispanic Serving 
                Institutions with $850,000 for the San 
                Bernardino Community College District;
            --$3,000,000 is for 1999 Special Olympics World 
        Summer Games;
            --$12,000,000 is for the City of Oklahoma City, 
        Oklahoma, to deal with the costs of the Oklahoma City 
        bombing;
            --$15,000,000 is for Capacity Building for 
        Community Development and Affordable Housing, 
        authorized by section 4 of P.L. 103-120, as in effect 
        before June 12, 1997. The conferees note that the 
        capacity building program has been in place for several 
        years, and believe that an assessment would be 
        appropriate. Accordingly, the conferees request the 
        Department to report to the authorizing and 
        appropriations committees, no later than April 1, 1999, 
        regarding its assessment of the effectiveness of this 
        program and recommendations for the future. The report 
        should address, among other matters, whether 
        eligibility for grants should be expanded to other 
        specified organizations or otherwise changed, or 
        whether grants should be awarded through an open 
        competition.
            --$55,000,000 for supportive services, as proposed 
        by the Senate instead of $50,000,000 as proposed by the 
        House. Of that amount, $20,000,000 is earmarked for 
        service coordinators and congregate services as 
        proposed by the House instead of $10,000,000 as 
        proposed by the Senate;
            --$20,000,000 for grants to eligible grantees under 
        section 11 of the Self-Help Housing Opportunity Program 
        Extension Act of 1996, as proposed by the House, and 
        $7,500,000 for Habitat for Humanity International for 
        capacity building activities;
            --$225,000,000 for economic development grants, 
        instead of $50,000,000 as proposed by the House and 
        $85,000,000 as proposed by the Senate. The conferees 
        agree to the following targeted economic development 
        grants:
                    --$500,000 for the Chabot Observatory and 
                Science Center in the City of Oakland, 
                California for a science education center;
                    --$500,000 to the City of Oceanside, 
                California for activities associated with the 
                City of Oceanside's Redevelopment Project;
                    --$600,000 to the Alameda County Housing 
                Agency--the Housing and Community Development 
                Department for the Alameda County Homeless Base 
                Conversion in Oakland, California;
                    --$500,000 to Golden Gate University in San 
                Francisco, California for the Golden Gate 
                University Agricultural Business Resource 
                Center project in Monterey, California;
                    --$500,000 to the Inland Valley Development 
                Agency for San Bernardino International Airport 
                in San Bernardino, California for activities 
                associated with the base conversion project;
                    --$500,000 to the City of Los Angeles, 
                California for the activities associated with 
                the economic redevelopment of the City of Los 
                Angeles' Santa Barbara Plaza project;
                    --$600,000 to the University of San Diego 
                in San Diego, California for the development of 
                the University of San Diego Science and 
                Education Research Center to provide education 
                and training of low income students;
                    --$100,000 to CALSTART in the Los Angeles 
                International Airport in Los Angeles, 
                California for an electric vehicle rental 
                demonstration;
                    --$1,000,000 to the Lake Champlain Science 
                Center in Burlington, Vermont for development 
                activities;
                    --$1,000,000 to the City of Barre, Vermont 
                for downtown development;
                    --$300,000 to the Vermont Housing and 
                Conservation Board for affordable housing 
                activities in Bennington, Vermont;
                    --$200,000 to Burlington Community Land 
                Trust for a multi-generational center in 
                Burlington, Vermont;
                    --$250,000 to the Vermont Technical 
                College, in Randolph, Vermont for the Vermont 
                Technology Workforce Training Initiative;
                    --$250,000 to the Town of Wells River, 
                Vermont for downtown redevelopment activities;
                    --$800,000 to the City of Dubuque, Iowa for 
                work associated with the development of the 
                Upper Mississippi River National Wildlife and 
                Fish Refuge Interpretive Center in Dubuque, 
                Iowa;
                    --$1,000,000 to the City of Sioux City, 
                Iowa for the restoration of the Warrior Hotel 
                in Sioux City, Iowa to be used for adult day 
                care and other direct services;
                    --$700,000 to City of Cedar Rapids, Iowa 
                for revitalization in the Cedar Rapids, Iowa 
                Southside neighborhood development project;
                    --$500,000 to the City of Waterloo, Iowa 
                for affordable housing development in Waterloo, 
                Iowa
                    --$750,000 for the New Jersey Community 
                Development Corporation to rehabilitate a site 
                in Paterson, New Jersey to establish an 
                employment opportunity center;
                    --$750,000 to Cumberland County, New Jersey 
                for the City of Bridgeton, New Jersey 
                redevelopment project;
                    --$500,000 to Covenant House for the 
                construction of a residential and community 
                service center in Newark, New Jersey;
                    --$500,000 to New Community Corporation to 
                develop abandoned property in Newark, New 
                Jersey;
                    --$500,000 for the Lower Essex Street 
                Waterfront redevelopment project in Rahway, New 
                Jersey;
                    --$3,000,000 for the construction of a 
                Science/Computer teaching center at Wheeling 
                Jesuit University in Wheeling, West Virginia;
                    --$2,000,000 to Hawaii Housing Authority 
                for the work associated with the construction 
                of the Community Resource Center at Kuhio 
                Homes/Kuhio Park Terrace in Honolulu, Hawaii;
                    --$250,000 to the County of Hawaii for 
                infrastructure development in Puna, Hawaii;
                    --$250,000 to the County of Maui, Hawaii 
                for the acquisition of the Malama Family 
                Recovery Center to provide counseling and 
                support to at risk women of substance abuse;
                    --$500,000 to the City of Ozark, Arkansas 
                for the development of its downtown area as a 
                tourist destination;
                    --$500,000 to the Turtle Mountain Community 
                College in North Dakota, for the Turtle 
                Mountain Economic Development and Education 
                Complex;
                    --$500,000 to the Rural Economic Area 
                Partnership Investment Board in North Dakota 
                for rural and economic development activities;
                    --$250,000 to the Atlantic Beach Community 
                Development Corporation in Horry County, South 
                Carolina for activities associated with 
                economic development in Horry County, South 
                Carolina;
                    --$250,000 to the School of Public Health 
                at the University of South Carolina in 
                Columbia, South Carolina to consolidate its 
                programs in a new central location;
                    --$500,000 to Dillon County, South Carolina 
                for the restoration of the Dillon County 
                Library;
                    --$1,500,000 to the City of Milwaukee for 
                the second phase of the riverwalk development 
                in Milwaukee's Historic Third Ward;
                    --$1,000,000 to the City of Sioux Falls, 
                South Dakota for the downtown restoration and 
                redevelopment purposes;
                    --$400,000 to the Greater Huron Development 
                Corporation for economic development efforts in 
                the Huron, South Dakota community;
                    --$500,000 to the Northern Hills Community 
                Development Corporation for economic 
                development efforts in the Lead, South Dakota 
                area;
                    --$350,000 to the City of Woonsocket, South 
                Dakota for infrastructure improvements at the 
                city's industrial park;
                    --$350,000 to the City of Mobridge, South 
                Dakota for economic development expansion and 
                development purposes;
                    --$200,000 to the Mitchell Economic 
                Development Corporation to construct an access 
                road and make improvements at the Railroad 
                Industrial Park in Mitchell, South Dakota;
                    --$100,000 to the Sioux Falls Downtown 
                Economic Development Incentive Fund for 
                business development in the City of Sioux 
                Falls, South Dakota;
                    --$200,000 to the City of Webster, South 
                Dakota for infrastructure improvements to the 
                community's industrial park;
                    --$200,000 to the City of Siseton, South 
                Dakota for business development purposes;
                    --$500,000 the Boston Symphony Orchestra in 
                Boston, Massachusetts for the restoration of 
                the Boston Symphony Hall;
                    --$750,000 to the Antelope Valley 
                Partnership for the redevelopment of Lincoln, 
                Nebraska;
                    --$250,000 to the Inner City Education and 
                Recreation Foundation in Chicago, Illinois to 
                rehabilitate vacant inner city parcel;
                    --$650,000 to Bethel New Life in Chicago, 
                Illinois for economic development efforts at 
                the former St. Anne's hospital site in Chicago, 
                Illinois;
                    --$500,000 to the Enterprise Foundation in 
                Columbia, Maryland for multi-state welfare-to-
                work child care initiative;
                    --$250,000 for development efforts in the 
                Scottsdale subdivision of Harvey, Louisiana;
                    --$500,000 to the East Baton Rouge Health 
                Alliance in East Baton Rouge Parish, Louisiana 
                for economic development, health promotion and 
                disease prevention;
                    --$250,000 to the Wing Luke Museum in the 
                international district of Seattle, Washington 
                for rehabilitation and expansion of the Wing 
                Luke Museum;
                    --$500,000 to the City of Seattle, 
                Washington for the rehabilitation and new 
                construction associated with the Noji Gardens 
                Homesight project;
                    --$100,000 to the Mountain Association for 
                Community Economic Development for economic 
                development activities in Kentucky;
                    --$750,000 to the Boys and Girls Club of 
                Las Vegas, Nevada for activities associated 
                with the renovation and expansion of the 
                existing education and recreation facility;
                    --$900,000 to the City of Tampa, Florida 
                for the refurbishment of the West Tampa El 
                Centro Espanol Building;
                    --$500,000 to the City of Portland, Oregon 
                for Phase 2 of the Portland Central City 
                Streetcar project to provide service to the 
                emerging North Macadam district;
                    --$500,000 to the Navajo Nation in 
                Shiprock, New Mexico for a multi-purpose center 
                to be used as a safe haven for at-risk Indian 
                juveniles;
                    --$250,000 to the Bayview Citizens for 
                Social Justice in Norhthampton County, Virginia 
                for economic development activities;
                    --$250,000 to the Museum for African Art in 
                New York, New York;
                    --$1,500,000 to Prince George's County 
                Maryland for work associated with the 
                Manchester Square Redevelopment Project in 
                Suitland, Maryland;
                    --$1,500,000 to Montgomery County, Maryland 
                for economic development and revitalization in 
                the southern Silver Spring business district;
                    --$1,500,000 to the Maryland Department of 
                Housing and Community Development to establish 
                a national Pediatric Functional Imaging Center, 
                to serve as a job training site for individuals 
                with neurological impairments, located in a 
                federally designated empowerment zone;
                    --$100,000 to Payne Memorial Outreach, Inc. 
                in Baltimore, Maryland for economic development 
                efforts related to the 1701 Madison Avenue 
                Redevelopment Project;
                    --$400,000 to Garret County, Maryland, for 
                activities related to development activities 
                associated with the Highview Apartments 
                Redevelopment Project in Oakland, Maryland;
                    --$250,000 to the Baltimore City Unity 
                Partnership, Inc. for economic development and 
                community revitalization activities in 
                Baltimore, Maryland;
                    --$750,000 to the Maryland State Department 
                of Housing and Community Development for 
                relocation of residents of Wagners Point 
                community in Baltimore, Maryland;
                    --$300,000 to the Santa Fe, NM Neighborhood 
                Housing Service to create the Self-Help Housing 
                Loan Fund;
                    --$300,000 to the City of Kansas City, KS 
                to demolish the Huron Building and the Security 
                Bank Building;
                    --$1,600,000 to the St. Stephen Lifestyle 
                Enrichment Center Campus for renovations in 
                Louisville, KY;
                    --$750,000 to the City of Riverside, CA for 
                the expansion of the Goeske Senior and Disabled 
                Citizens Center;
                    --$100,000 to the City of Riverside, CA for 
                Phase II of the Citrus Park.
                    --$150,000 to the County of Riverside, CA 
                for the Riverside School of the Arts at 
                Riverside Community College;
                    --$1,000,000 to the City of San Diego, CA 
                for the San Diego Childrens Convalescent 
                Hospital;
                    --$200,000 to Ascension Parish, LA for 
                parks and recreation development;
                    --$100,000 to the City of Plaquemine, LA 
                for the development of the City Activity 
                Center;
                    --$50,000 to the City of Plaquemine, LA for 
                the historic train depot;
                    --$250,000 to the Los Angeles County 
                Development Commission, CA for the Growing 
                Experience at the Carmelitos Center;
                    --$250,000 to the Los Angeles County 
                Development Commission, CA for the Telemedicine 
                project at the Carmelitos Center;
                    --$350,000 to Marshall County, AL for the 
                Lewis Mountain drinking water infrastructure 
                improvements;
                    --$1,000,000 to Etowah, AL for the Lake 
                Gadsden infrastructure improvements;
                    --$500,000 to the Nevada Rural Health 
                Centers, NV for the Nevada Mobile Mammography 
                unit for a mammovan;
                    --$250,000 to Westhampton Beach, NY for the 
                renovation and revitalization of the 
                Westhampton Beach Performing Arts Center;
                    --$1,000,000 to Ball State University, IN 
                for the Muncie-Delaware County Workforce 
                Development Initiative;
                    --$1,000,000 to Indiana University in 
                Bloomington, IN for the renovation of the 
                Midwest Proton Radiation Institute;
                    --$450,000 to Rural Enterprises in the City 
                of Durant, OK for the purpose of assisting 
                businesses in economically distressed rural 
                areas;
                    --$500,000 to the City of Topeka, KS for 
                drinking water infrastructure;
                    --$250,000 to Pittsburg State University, 
                KS for facilities improvements at the Kansas 
                Technology Center;
                    --$500,000 to Riverton, UT for the 
                restoration of the civic center;
                    --$650,000 to the City of Bernalillo, NM 
                for the completion of the youth center;
                    --$500,000 to Rampo College of New Jersey, 
                NJ for the construction of the Center for 
                Performing and Visual Arts;
                    --$1,000,000 to CALSTART for creation and 
                relocation of business incubator activities 
                associated with the cities of Pasadena, CA and 
                Camarillo, CA;
                    --$250,000 to Elizabethtown, KY for the 
                revitalization of the State Theater;
                    --$250,000 to Liberal, KS for the 
                revitalization effort of the Original Town of 
                Liberal Revitalization Corporation;
                    --$100,000 to Gamaliel, KY for construction 
                costs associated with the Gamaliel Fire House;
                    --$100,000 to Tompkinsville, KY for 
                construction costs associated with the 
                Community Development Training Center;
                    --$130,000 to Columbia, KY for construction 
                of the Adair County Community Development 
                Training Center to retrain displaced textile 
                workers in the area;
                    --$100,000 to the City of Russellville, KY 
                for water system infrastructure improvements;
                    --$20,000 to Central City, KY for the GISH 
                Playground site improvements as well as the 
                purchase of new equipment;
                    --$300,000 to the Ewing Naval Warfare 
                Center Reuse Committee, NJ for economic 
                redevelopment of the area;
                    --$50,000 to Somerset County Board of 
                Social Services, NJ for AGAPE House Homeless 
                Shelter;
                    --$500,000 to Cathedral City, CA for 
                infrastructure improvement needs related to the 
                bridge over crossing at Interstate 10 and Date 
                Palm Drive;
                    --$500,000 to the University of New 
                Hampshire, NH for library and laboratory 
                enhancements as well as telecommunications 
                access;
                    --$500,000 to the University of Montana, 
                Missoula, MT for the planning, design and 
                establishment of a Research Development 
                Enterprise;
                    --$1,250,000 to City of Charlotte, NC for 
                economic development in the Wilkinson Boulevard 
                Corridor;
                    --$250,000 to the Arkansas Enterprise Group 
                of Arkadelphia, AR to address child care issues 
                in conjunction with welfare to work 
                initiatives;
                    --$500,000 to County of Tulare, CA for the 
                Tulare International Trade Center;
                    --$1,000,000 to the City of Youngstown, OH 
                for the Southside Medical Center campus;
                    --$600,000 to the City of Kendleton, Fort 
                Bend County, TX for upgrading the sewer and 
                water system;
                    --$500,000 to the nonprofit 1490 
                Enterprises Community Center inBuffalo, NY for 
renovation of the community center;
                    --$100,000 to Wayne State University, MI 
                for the renovation of Hilberry Theater;
                    --$1,000,000 to Wittenberg University, OH 
                for Phase I of the science facility renovation 
                project;
                    --$500,000 to County of Fresno, CA for 
                Westcare's Fresno County Community Healthcare 
                campus to provide low-income health care 
                services;
                    --$1,000,000 to the Tampa Port Authority, 
                FL for economic development and revitalization 
                efforts;
                    --$1,500,000 to the County of Sacramento, 
                CA for the Sacramento Urban League Workforce 
                Development Center;
                    --$500,000 to Houghton College, NY for the 
                costs associated with the development of an 
                academic Fine Arts Center;
                    --$500,000 to the County of Fairfax, VA for 
                revitalization efforts at Bailey's Crossroads 
                and Annandale, VA;
                    --$200,000 to Abington Township, PA for the 
                Abington Township library construction and 
                renovation project;
                    --$530,000 to the Norristown Borough, PA 
                for construction of a parking garage;
                    --$10,000 to the Wissahickon Public 
                Library, Blue Bell, PA for technology 
                infrastructure;
                    --$10,000 to the Conshohocken Public 
                Library, Borough of Conshohoken, PA for 
                technology infrastructure;
                    --$175,000 to Montgomery County, PA for the 
                acquisition of a senior adult activity center;
                    --$25,000 to Conshohocken Borough, PA for 
                the construction of a Veterans memorial;
                    --$50,000 to Montgomery County, PA for the 
                Hatboro Borough library renovation and 
                construction project;
                    --$250,000 to the City of Stockton, CA for 
                the acquisition and rehabilitation of the Old 
                Stockton Hotel;
                    --$250,000 to the Edison Welding Institute, 
                Columbus, OH for a specialized job training 
                program related to welfare to work initiatives 
                in central Ohio;
                    --$350,000 to the City of Citrus Heights, 
                CA for transitional cost of the City's recent 
                incorporation;
                    --$125,000 to the City of Folsom, CA for 
                the Brownfields Redevelopment project at Folsom 
                City Landfill and Corporation Yard;
                    --$125,000 to Placer County, CA for the 
                regional wastewater treatment facility;
                    --$250,000 to the City of Newhall, CA for 
                the Newhall Metrolink Station;
                    --$250,000 to the City of Lancaster, CA for 
                construction of the National Soccer Activity 
                Center;
                    --$250,000 to the City of Lancaster, CA for 
                costs associated with the 50th District 
                Agricultural Association Fairgrounds 
                relocation;
                    --$250,000 to Ventura County, CA for 
                construction of Rail Tunnel 26;
                    --$750,000 to the City of Sardis, MS for a 
                wastewater treatment facility;
                    --$250,000 to the Town Silver City, NM for 
                wastewater treatment facility upgrades;
                    --$1,000,000 to Holmes County, OH for the 
                Northeast Ohio Health Outreach Network;
                    --$1,000,000 to Newstead, NY for 
                construction costs associated with a library;
                    --$350,000 to the City of Hammond, LA for 
                historic Columbia Theater renovations;
                    --$750,000 to City Park in New Orleans, LA 
                for infrastructure and renovation needs;
                    --$750,000 to the City of Covington, LA for 
                the Community Workforce Development Center;
                    --$350,000 to Grace House in New Orleans, 
                LA for facility improvements;
                    --$1,000,000 to the Audubon Institute 
                Living Sciences Museum in New Orleans, LA;
                    --$300,000 to the University of New 
                Orleans, LA for the Welfare Entrepreneurship 
                program;
                    --$500,000 to the County of San Bernardino, 
                CA for the Shack Attack program in the Morongo 
                Basin and other desert areas in the County;
                    --$1,000,000 to the City of Redlands, CA 
                for the redevelopment initiatives near the 
                historic Fox Theater;
                    --$500,000 to the City of Redlands, CA for 
                the reconstruction of the Alabama Street 
                Bridge;
                    --$1,000,000 to the City of Highland, CA 
                for construction of the Highland Community 
                Center;
                    --$1,000,000 to the City of Loma Linda, CA 
                for infrastructure improvements at Redlands 
                Boulevard and California Streets;
                    --$300,000 to the Town of Apple Valley, CA 
                for the Happy Trails Chidrens Foundation for 
                site improvements at Cooper Home;
                    --$250,000 to the County of San Bernardino, 
                CA for a public park facility to serve the 
                Children's Forest, Hoffman Elementary School, 
                Rim of the World Recreation and Park District 
                and local businesses;
                    --$500,000 to the Boys and Girls Club of 
                Redlands for the development of a youth 
                facility, Redlands, CA;
                    --$375,000 to Clearfield Borough, PA for 
                the Dimeling Hotel renovation project for 
                senior living apartments;
                    --$2,750,000 to the Olympic Regional 
                Development Authority, NY for upgrades at Mt. 
                Van Hoevenberg Sports Complex;
                    --$750,000 to St. Josephs Hospital Health 
                Center for the Central New York Cardiac Care 
                and Hemodialysis Enhancement Center in 
                Syracuse, NY;
                    --$2,000,000 to the Childrens Center of 
                Brooklyn, NY for the construction of a facility 
                to house educational and therapeutic programs 
                for disabled preschool children;
                    --$400,000 to the City of Syracuse, NY for 
                the Museum of Science and Technology;
                    --$100,000 to the Sally Coyne Health Care 
                Center for Independence in North Syracuse, NY;
                    --$200,000 to the Boys and Girls Club in 
                Syracuse, NY for the renovation of existing 
                facilities;
                    --$500,000 to Wyoming County, PA for the 
                construction of a residential and treatment 
                facility for autistic adults;
                    --$500,000 to City of Scranton, PA for the 
                Goodwill Industries elderly housing project at 
                the former North Scranton Intermediate School;
                    --$500,000 to the City of Scranton, PA to 
                replace the treatment and residential facility 
                in Scranton which serves and houses children in 
                need of mental health, behavioral, and 
                protective services;
                    --$500,000 to Lacawanna County, PA to 
                improve the site tipple and yard in Lacawanna 
                County Coal Mine;
                    --$500,000 to Morristown, NJ for economic 
                redevelopment initiatives;
                    --$500,000 to Science Park in Newark, NJ 
                for academic and infrastructure needs;
                    --$500,000 to the Stevens Institute of 
                Technology Laboratory Business Innovation in 
                Hoboken, NJ;
                    --$500,000 to the University of Oklahoma, 
                OK for Phase I of planning for incubator 
                operations at the Advanced Research Park;
                    --$500,000 to the City of San Juan 
                Capastrano, CA for construction of a Boys and 
                Girls Club of Capastrano Valley;
                    --$1,250,000 to the University of 
                Connecticut, for the continued construction of 
                the Agriculture Biotechnology Laboratory in 
                Storrs, CT;
                    --$500,000 to Montgomery County, MD for the 
                Easter Seals Break-Away Senior Day Care Center;
                    --$1,500,000 to the Detroit Rescue Mission 
                Ministries for infrastructure repairs, Detroit, 
                MI;
                    --$1,000,000 to the Mill Springs 
                Battlefield Association for the construction of 
                an interactive visitors center and museum at 
                the Mill Springs Battlefield in Pulaski County, 
                KY;
                    --$225,000 to the City of Logan, UT for the 
                Logan City Trails/Transportation project;
                    --$75,000 to the City of Logan, UT for the 
                Logan City Willow Park Zoo;
                    --$200,000 to the City of Layton, UT for 
                the completion of the Kays Creek Corridor 
                project in northeast Layton;
                    --$500,000 to the Haymarket Center's 
                Community and Family Learning Center, Chicago, 
                IL for the comprehensive substance abuse 
                treatment center;
                    --$650,000 to the City of Jacksonville, FL 
                for the Talleyrand Redevelopment Project;
                    --$100,000 to the City of Jacksonville 
                Beach, FL for water and wastewater 
                infrastructure improvements;
                    --$500,000 to the University of Cincinnati 
                Medical Center, OH for an addition to and 
                renovation of the Medical Sciences Building;
                    --$250,000 to the County of San Bernardino, 
                CA for the Running Springs Downtown 
                Revitalization Project;
                    --$750,000 to the non-profit Charter 
                Schools Development Corporation for working 
                capital and design of a credit enhancement 
                program required to leverage private financing 
                for charter school facilities using the 
                District of Columbia as a model for a national 
                approach;
                    --$500,000 to Pacific Union College, 
                Angwin, CA for the Nappa Valley Resource Center 
                development a welfare to technology job 
                training program;
                    --$1,000,000 to the California State 
                University, Long Beach, CA to implement an 
                affordable, disaster resistant, energy 
                efficient housing program in conjunction with 
                the City of Omaha, NE;
                    --$275,000 to Warren County, VA for 
                asbestos remediation and lead paint removal at 
                the Avtex Superfund Site in Front Royal, VA.
                    --$2,500,000 for the University of Alaska 
                Museum, Fairbanks, Alaska;
                    --$350,000 for the Noel Wien Memorial 
                Library in Fairbanks, Alaska;
                    --$2,500,000 for the Alaska Vocational 
                Technical Center in Seward, Alaska for a 
                maritime vessel simulator;
                    --$500,000 for the Homer Dock in Homer, 
                Alaska;
                    --$2,000,000 for the University of Missouri 
                for the Center for Life Sciences;
                    --$700,000 for the Little Sisters of the 
                Poor in Kansas City, Missouri for the 
                renovation and reconstruction of affordable 
                housing;
                    --$350,000 for the Guadalupe Center in 
                Kansas City, Missouri;
                    --$4,000,000 for the City of St. Louis for 
                the Washington Avenue Loft District Streetscape 
                Improvements, consistent with the 1998 Downtown 
                Now! Plan;
                    --$1,500,000 for Provo, Utah the 
                revitalization of the historic downtown 
                business center;
                    --$500,000 for the Redevelopment Agency of 
                Salt Lake City, Utah for the redevelopment of 
                the Gateway District;
                    --$500,000 for SHARE House to build a new 
                non-medical detoxification center in Missoula 
                County, Montana;
                    --$750,000 for the Samuel U. Rodgers 
                Community Health Center in Kansas City, 
                Missouri, for community revitalization and 
                capital improvement projects;
                    --$250,000 for the Family Health Center in 
                Columbia, Missouri for the delivery of health 
                care services for low-income patients;
                    --$250,000 for the Children's Center of 
                Southwest Missouri for capital improvement 
                projects;
                    --$2,500,000 for the City of Kansas City 
                for the Liberty Memorial Monument for 
                renovation;
                    --$1,000,000 for the City of Durango, 
                Colorado to develop the Cultural Arts Complex 
                of southwest Colorado;
                    --$1,000,000 for the City of Aurora for the 
                redevelopment of the Fitzsimmons Army base;
                    --$1,000,000 for the Arapahoe House in 
                Denver, Colorado for rehabilitation needs and 
                services.
                    --$600,000 for Bethune-Cookman College 
                Daytona Beach, Florida;
                    --$1,000,000 for the City of Brookhaven, 
                Mississippi for renovating historic Whitworth 
                College buildings in Brookhaven, Mississippi;
                    --$500,000 for the City of Jackson, 
                Mississippi for creating a youth 
                entrepreneurship program;
                    --$250,000 for renovation, accessibility 
                and asbestos remediation for the Wellstone 
                Neighborhood Center, Wellstone, Missouri;
                    --$900,000 to support homeless initiatives, 
                with $300,000 for the Bond Center in Pine Lawn, 
                Missouri, $300,000 for the Kitchens in 
                Springfield, Missouri and $300,000 for Rose 
                Brooks in Kansas City, Missouri;
                    --$500,000 for Nottoway County, Virginia 
                for the revitalization of its governmental 
                complex.
                    --$1,000,000 for Project Social Care in 
                Brooklyn, New York;
                    --$1,000,000 for Touro Law Center in Long 
                Island, New York for its relocation project;
                    --$2,000,000 for the Hispanic Cultural 
                Center in Albuquerque, New Mexico;
                    --$600,000 for the Jardin de los Ninos 
                homeless daycare center in Las Cruces, New 
                Mexico;
                    --$2,000,000 for the North Carolina State 
                Museum of Natural Resources for the 
                construction and installation of interactive 
                natural history exhibits;
                    --$300,000 for the City of Rockingham, 
                North Carolina for a Neighborhood Level Park;
                    --$300,000 for Richmond County, North 
                Carolina for a neighborhood park;
                    --$250,000 for the Beech Glenn Community of 
                Madison County, North Carolina for a community 
                library, daycare, adult education, recreational 
                activities and facilities for youth leagues;
                    --$250,000 for Buncombe Technical Community 
                College, North Carolina for a small business 
                incubator;
                    --$250,000 for Blue Ridge Community 
                College, North Carolina for the Blue Ridge 
                Environmental Training Center;
                    --$250,000 for the Aycock Recreational 
                Complex in Henderson, North Carolina;
                    --$250,000 for Edenton, North Carolina for 
                waterfront renovation;
                    --$2,000,000 for the Pacific Science Center 
                in Seattle, Washington;
                    --$500,000 for the renovation of the opera 
                house at Enosburg, Falls, Vermont;
                    --$500,000 for Crawford County, Georgia for 
                a community development center in Roberta, 
                Georgia;
                    --$500,000 for a community development 
                center/courthouse annex project in Crawford 
                county, Georgia for use in facilitating 
                increases in social service needs associated 
                with significant population growth;
                    --$1,000,000 for the King Urban Life Center 
                in Buffalo, New York for an early childhood 
                school and community center;
                    --$1,400,000 for Columbia University for 
                its Audubon III Project in New York City;
                    --$2,500,000 to the City of Kellogg, ID for 
                the restoration of Milo Creek in Kellogg and 
                Wardner, Idaho;
                    --$2,000,000 for Campbellsville University 
                in Kentucky to implement a job training 
                partnership;
                    --$2,000,000 for Jarrell, Texas for a 
                public park and a storm shelter;
                    --$2,500,000 for a new science and 
                mathematic facility at the University of 
                Alabama in Tuscaloosa, Alabama;
                    --$500,000 for Calhoun County Community 
                College Advance Manufacturing Center in 
                Decatur, Alabama;
                    --$1,000,000 for the City of Huntsville for 
                the development of the Center for Early 
                Southern Life at Alabama Constitution Village;
                    --$2,000,000 for Pittsburgh, Pennsylvania 
                to redevelopment the Sun Company/LTV Steel site 
                in Hazelwood, PA;
                    --$250,000 for the development of a 
                business development center and a job training 
                center in the underserved communities of 
                Central and South Philadelphia;
                    --$1,000,000 for Wilkes-Barre, PA for a 
                downtown revitalization project;
                    --$1,200,000 for the development of the 
                Riverbend Research and Training Park in Post 
                Falls, Idaho;
                    --$600,000 for Marguerite's Place, a 
                shelter for battered women, in Nashua, N.H.;
                    --$300,000 for Keystone Hall, a drug and 
                rehabilitation Center in Nashua, N.H.;
                    --$100,000 for Southern New Hampshire 
                Services for homeless outreach in Nashua, N.H.;
                    --$450,000 to the Great Lakes Science 
                Center, in Cleveland, Ohio to further the 
                creation, renovation and upgrade of the Great 
                Ideas Community and Great Lakes Environment 
                Exhibits;
                    --$500,000 to John Carroll University in 
                Cleveland, Ohio for the Bohannon Science 
                Center's advancement of the Center for Science 
                Education, Teaching and Technology;
                    --$500,000 to the Cleveland Public Library 
                in Cleveland, Ohio for the academic enrichment 
                and workforce development project;
                    --$500,000 to the Amistad Development 
                Corporation in Cleveland, Ohio for the Lee 
                Harvard Shopping Center and District 
                infrastructure enhancement and redevelopment 
                investment initiative;
                    --$500,000 to the Jewish Community Center 
                of Cleveland, Ohio for the restoration and 
                upgrade of daycare facilities and enhancement 
                of services and programs for children and 
                seniors;
                    --$500,000 to the Murtis H. Taylor Multi-
                Service Center in Cleveland, Ohio for 
                furthering a full range of community outreach 
                and social services delivery and enhancement;
                    --$350,000 to the Cleveland Boys and Girls 
                Club in Cleveland, Ohio for the enhancement of 
                youth and community outreach, and human and 
                economic capital development and investment;
                    --$800,000 to Cleveland Housing Network, 
                Inc. in Cleveland, Ohio for furthering the 
                lease purchase housing initiative on the east 
                side of Cleveland;
                    --$1,000,000 to the Playhouse Square 
                Foundation in Cleveland, Ohio for the four-
                theater complex Allen Theatre restoration 
                project;
                    --$1,000,000 to the City of Parkersburg, 
                West Virginia for economic development and 
                downtown revitalization efforts;
                    --$250,000 to the Vandalia Heritage 
                Foundation, a 501(c)(3) organization which 
                promotes community and economic development in 
                northern West Virginia;
                    --$200,000 to the Institute for Software 
                Research in Fairmont, West Virginia to be used 
                for capital equipment, operational expenses, 
                and program development;
                    --$350,000 to the City of Fairmont, West 
                Virginia to be distributed as follows: $250,000 
                for the Fairmont Community Development 
                Partnership and $100,000 for the Friends of 
                Highgate;
                    --$400,000 to the town of Thomas, West 
                Virginia for downtown revitalization and 
                historic preservation;
                    --$2,200,000 to the City of Toledo, Ohio to 
                address improvements to central city 
                neighborhoods, the historic main public 
                library, and downtown area projects, and to 
                leverage the potential of Toledo's not-for-
                profit community development corporations;
                    --$2,200,000 to the Alternatives Program of 
                Dade County, Inc. for rehabilitation of 
                distressed buildings in the Edison-Little River 
                neighborhood in Miami, Florida;
                    --$650,000, to the City of Durham, North 
                Carolina for economic and neighborhood 
                revitalization efforts;
                    --$700,000 to the City of Mackinac Island, 
                Michigan for renovation of the historic 
                Mackinac County courthouse;
                    --$950,000, to the North West Concentrated 
                Employment Program in Ashland, Wisconsin for 
                education, training, counseling, emergency 
                assistance, and related services for displaced 
                workers and their families;
                    --$150,000 to the Saint Vincent Archabbey 
                in Latrobe, Pennsylvania for restoration of the 
                historic Saint Vincent Abbey grist mill;
                    --$240,000 to the Fort Ligonier Association 
                for restoration of buildings at Fort Ligonier, 
                Pennsylvania;
                    --$185,000 to the Salisbury-Elk Lick School 
                District in Somerset County, Pennsylvania to 
                construct a community center to house 
                intergenerational technology and early 
                childhood programs as well as a library;
                    --$150,000 to the Redevelopment Authority 
                of Cambria County, Pennsylvania for a waterline 
                extension;
                    --$75,000 to the City of Latrobe, 
                Pennsylvania for demolition of buildings to 
                open lots for new development;
                    --$200,000 to Fallingwater in Mill Run 
                Pennsylvania, to construct a water treatment 
                facility;
                    --$400,000 to the City of Tacoma, 
                Washington to implement its downtown 
                redevelopment plan;
                    --$300,000 to the City of Minneapolis, 
                Minnesota for the restoration of Dania Hall;
                    --$300,000 to the City of Minneapolis, 
                Minnesota for the Portland Place housing 
                development initiative;
                    --$500,000 to the Los Angeles Brotherhood 
                Crusade for the Brotherhood Business 
                Development and Capital Fund;
                    --$700,000 to the City and County of San 
                Francisco, California for community 
                revitalization efforts in the Visitacion Valley 
                neighborhood;
                    --$450,000 to the City of Lake Station, 
                Indiana for rehabilitation of sewer lines;
                    --$400,000 to ADVANCE, of Whittier, 
                California for community economic development 
                activities, including technical assistance and 
                outreach to small businesses in the Los Angeles 
                County region;
                    --$450,000 to the Village of Port Chester, 
                New York for downtown revitalization;
                    --$50,000 to the Mount Hope Housing Company 
                of New York City for the renovation of various 
                aspects of a multi-use community center;
                    --$300,000 to the New York City Department 
                of Parks and Recreation for the rebuilding and 
                restoration of Joyce Kilmer Park in the South 
                Bronx;
                    --$400,000 to Arlington County, Virginia to 
                assist the county in developing an innovative 
                low income housing program to facilitate home 
                ownership for families displaced through the 
                redevelopment of the Arna Valley apartments;
                    --$50,000 to the McLean Revitalization 
                Corporation in McLean, Virginia to implement 
                the McLean revitalization plan developed by 
                Fairfax County for the aging McLean business 
                district;
                    --$400,000 for the North County Community 
                Development Corporation in North Adams, 
                Massachusetts for the construction of a small 
                business incubator;
                    --$350,000 to the Arizona Science Center to 
                provide science and technology education and 
                training opportunities to low-income and 
                minority students in downtown Phoenix;
                    --$250,000 to the National Children's 
                Advocacy Center in Huntsville, Alabama for 
                construction of a new facility;
                    --$100,000 to Alabama A&M University in 
                Normal, Alabama for renovation of historic 
                buildings on the university's campus;
                    --$50,000 to Princess Theater in Decatur, 
                Alabama for renovation and operation of the 
                current facility;
                    --$750,000 to the Oregon Garden Project to 
                construct a wastewater treatment, education and 
                training facility in Silverton, Oregon;
                    --$500,000 to the City of Buffalo, New York 
                for improvements to LaSalle Park;
                    --$250,000 to the Town of Tonawanda, New 
                York for demolition of abandoned grain 
                elevators;
                    --$500,000 to Great Brook Valley Health 
                Center, Inc. in Worcester, Massachusetts to 
                support a capital expansion project to increase 
                health services to the poor and indigent;
                    --$200,000 to Assumption College in 
                Worcester, Massachusetts for construction of 
                the Joseph P. Kennedy, Jr. Science and 
                Technology Center;
                    --$100,000 to the Appalachian Health 
                Services Cooperative in Hillsboro, Ohio for a 
                rural Medicaid health cooperative among 
                Highland District Hospital, Brown County 
                General Hospital and Adams County Hospital;
                    --$400,000 to the Portsmouth Metropolitan 
                Housing Authority in Portsmouth, Ohio for air 
                conditioning of housing units;
                    --$400,000 to the Far From Home Foundation 
                in Indianapolis, Indiana to provide substance 
                abuse treatment and transitional housing for 
                homeless veterans;
                    --$400,000 to the City of San Diego 
                Redevelopment Agency for development of the 
                retail portion of City Heights Urban Village in 
                San Diego, California;
                    --$300,000 to the City of Bad Axe, Michigan 
                for a water and sewer project;
                    --$100,000 to Harambee Institute in St. 
                Louis, Missouri to continue expansion of 
                facilities providing educational guidance and 
                encouragement to children and adults interested 
                in pursuing a career in the arts;
                    --$100,000 to the St. Louis Black Repertory 
                Company, to further the expansion and 
                renovation of a facility to provide cultural 
                arts activities for the St. Louis metropolitan 
                area;
                    --$150,000 to Better Family Life, Inc. in 
                St. Louis, Missouri to assist with the 
                construction of new facilities offering school-
                based programs and cultural programs;
                    --$100,000 to The Black World History Wax 
                Museum in St. Louis, Missouri for structural 
                renovation and improvements in the building's 
                accessibility and safety;
                    --$50,000 to Grace Hill Neighborhood 
                Services in St. Louis, Missouri to improve 
                community services at a facility dedicated to 
                strengthening low-income neighborhoods in North 
                St. Louis;
                    --$300,000 to Williamsburg County, South 
                Carolina for the Williamsburg County Industrial 
                Park;
                    --$50,000 to the Westside Association for 
                Community Action in Chicago, Illinois for its 
                community development, job training, drug 
                prevention and juvenile delinquency prevention 
                programs;
                    --$50,000 to the Coalition for United 
                Community Action in Chicago, Illinois for job 
                training and development programs;
                    --$50,000 to the Chinese American Service 
                League in Chicago, Illinois for community 
                development, and social services programs;
                    --$50,000 for SANKOFA of Chicago, Illinois 
                for housing counseling, rehabilitation, and 
                tenant education programs;
                    --$350,000 to the City of Salinas, 
                California for development of housing and 
                daycare facilities for farmworker families;
                    --$400,000 to Memphis Incubator System, 
                Inc. to establish a business incubator in 
                Memphis, Tennessee;
                    --$500,000 to the Rural Development and 
                Finance Corporation to seed a special 
                opportunities fund, underwrite project 
                technical assistance, and make capacity-
                building grants to rural community development 
                corporations along the Texas/Mexico border;
                    --$200,000 to the Village of Dixmoor, 
                Illinois for the purchase and renovation of a 
                building for a community and senior center and 
                for the acquisition of adjacent land for 
                recreation park development and open space 
                preservation;
                    --$200,000 to Metropolitan Family Services 
                in Chicago, Illinois for the purpose of 
                renovating and expanding the Calumet Center;
                    --$300,000 to Covenant House/Texas for 
                their transitional housing program for runaway 
                and homeless youth;
                    --$350,000 to the City of Dallas, Texas for 
                redevelopment initiatives in the southern areas 
                of the city;
                    --$400,000 to the Commonwealth of 
                Massachusetts, of which $250,000 is for the 
                Arlington-Boston Bike Path and $150,000 is for 
                the Minuteman Commuter Bikeway;
                    --$400,000 to the Southside Institutions 
                Neighborhood Alliance of Hartford, Connecticut 
                for neighborhood revitalization efforts;
                    --$300,000 to the Cleveland Botanical 
                Garden of Cleveland, Ohio for development of an 
                environmental educational facility;
                    --$1,600,000 to Spelman College in Atlanta, 
                Georgia for development of a science center;
                    --$300,000 to Schenectady Family Health 
                Services in Schenectady, New York, for 
                facilities expansion;
                    --$300,000 to the Rockaway Development and 
                Revitalization Corporation in New York City, 
                for rehabilitation of a building for use as a 
                commercial incubator facility;
                    --$300,000 to the Northeast Ventures 
                Corporation in Duluth, Minnesota for economic 
                development projects in northeastern Minnesota;
                    --$400,000 to the Southern West Virginia 
                Community and Technical College in Williamson, 
                West Virginia for construction and furnishing 
                of a library;
                    --$400,000 to the Apollo Theatre Foundation 
                in New York City, for renovation and upgrades 
                to the theatre;
                    --$200,000 to Project Restore of Los 
                Angeles, California for the Los Angeles City 
                Civic Center Trust, to revitalize and redevelop 
                the Civic Center neighborhood;
                    --$150,000 to the Southeast Rio Vista 
                Family YMCA, for development of a child care 
                center in the City of Huntington Park, 
                California;
                    --$50,000 to the City of Los Angeles for 
                redevelopment of a former prison site;
                    --$100,000 to the City of Richmond, 
                Virginia for an alternative school program in 
                the East End community of Richmond;
                    --$50,000 to Best Friends, Inc. in Newport 
                News, Virginia for its work with at-risk and 
                economically disadvantaged adolescent girls;
                    --$100,000 to Hampton University in 
                Virginia for a high-speed technology 
                information network;
                    --$350,000 to the City of Petersburg, 
                Virginia for the creation of the Appomattox 
                Regional Governor's School for Technology and 
                the Arts in Petersburg;
                    --$300,000 to the University of Rochester 
                Medical Center in Rochester, New York for its 
                Institute of Biomedical Sciences;
                    --$350,000 to the Delta Foundation in 
                Greenville, Mississippi for its Urban Revolving 
                Business Fund;
                    --$300,000 to the Brooklyn (New York) 
                campus of Long Island University, to support 
                the renovation of a community-based performing 
                arts facility;
                    --$500,000 to the Black Women's Forum in 
                Los Angeles, California for site acquisition 
                and construction of a multi-purpose center;
                    --$350,000 to Marin County, California for 
                development of a cultural and community center 
                in the Marin City region of the county;
                    --$50,000 to the City of Rialto, CA for 
                construction at the city's Teen Center.
                    --$42,500,000 for Youthbuild, instead of 
                $35,000,000 as proposed by the House and 
                $40,000,000 as proposed by the Senate. The 
                conferees agree that not more than $2,500,000 
                of the funds shall be used for capacity 
                building activities; and
                    --$25,000,000 for the Neighborhood 
                Initiatives program, as proposed by the House.
      Deletes a provision earmarking $20,000,000 for 
Brownfields, as proposed by the House. The conferees agree to 
provide $25,000,000 for Brownfields in a separate account as 
proposed by the Senate.
      Deletes a provision providing $70,000,000 for lead-based 
paint hazard reduction program and prohibiting funds for the 
healthy homes initiative, as proposed by the Senate. The 
conferees agree to provide $80,000,000 for the lead-based paint 
hazard reduction program and the healthy homes initiative in a 
separate account, as proposed by the House.
      Inserts language proposed by the Senate that no more than 
$250,000 of the funds made available for emergencies may be 
used for a non-federal cost-share of a project funded by the 
Corps of Engineers.
      The conferees agree that HUD shall not require additional 
states to implement the Integrated Disbursement and Information 
System (IDIS) until problems associated with it are corrected. 
The problems include, but are not limited to, the lack of a 
fully functioning Electronic Data Interchange, full internet 
capacity, and complete reporting abilities. HUD shall report to 
Congress, no later than January 1, 1999, as to the specific 
corrective actions being taken to resolve existing system 
problems for current state users.

                       Brownfields Redevelopment

      Appropriates $25,000,000 for brownfields redevelopment, 
as proposed by the Senate.

                  Home Investment Partnerships Program

      Appropriates $1,600,000,000 for the HOME program, as 
proposed by the House instead of $1,550,000,000 as proposed by 
the Senate. An earmark of $17,500,000 is provided for housing 
counseling, instead of $10,000,000 as proposed by the House and 
$25,000,000 as proposed by the Senate.
      The conference agreement directs rather than recommends 
that HUD develop a process for measuring the performance of 
housing counseling agencies as proposed by the House.
      The conferees are aware that the McGuire House, an 
unoccupied low-income housing project in Prince George's 
County, Maryland, has been vacant for quite some time. The 
conferees, therefore, encourage HUD to work with the County to 
redevelop this property, thereby assisting in the economic 
development of the area.

                       Homeless Assistance Grants

      Appropriates $975,000,000 for homeless assistance grants, 
as proposed by the House instead of $1,000,000,000 as proposed 
by the Senate.
      Inserts language proposed by the House authorizing HUD to 
review obligated amounts, and to deobligate those funds if 
appropriate, particularly if it seems likely a contract is 
unlikely to be performed. The conferees note that deobligating 
these funds should result in a funding level significantly 
above $1,000,000,000.
      Inserts language requiring at least 30% of the 
appropriation be directed to permanent housing, as proposed by 
the Senate.
      Inserts language requiring a 25% match by grantees for 
services, as proposed by the Senate.
      Inserts language proposed by the House authorizing HUD to 
use 1% of funds appropriated for technical assistance and for 
tracking systems needed to collect information on the 
unduplicated number of clients serviced and the disposition of 
the client exiting homeless programs.

                            Housing Programs

                    Housing for Special Populations

      Appropriates $854,000,000 for housing for special 
populations, instead of $839,000,000 as proposed by the House 
and $870,000,000 as proposed by the Senate. For section 202 
housing for the elderly, $660,000,000 is appropriated instead 
of $645,000,000 as proposed by the House and $676,000,000 as 
proposed by the Senate. The conferees reiterate Senate report 
language directing $1,000,000 of the funds to the Maryland 
Department of Housing and Community Development to build 
Caritas House and for expanding the St. Ann Adult Medical Day 
Care facility.

                     Federal Housing Administration

             FHA--MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT

                     (Including Transfers of Funds)

      Limits obligations for direct loans to no more than 
$100,000,000 as proposed by the Senate instead of $50,000,000 
as proposed by the House.
      Deletes language proposed by the Senate providing 
$25,000,000 for enforcement of standards on FHA insured 
multifamily projects.

             FHA--GENERAL AND SPECIAL RISK PROGRAM ACCOUNT

                     (Including Transfer of Funds)

      Limits obligations for the principal amount of direct 
loans to no more than $50,000,000, of which no more than 
$30,000,000 is for bridge financing, as proposed by the House, 
instead of limiting obligations for direct loans to no more 
than $120,000,000, of which no more than $100,000,000 was for 
bridge financing as proposed by the Senate.
      Deletes report language proposed by the Senate directing 
HUD to refrain from conducting bulk mortgage sales of FHA-
insured single family mortgages.
      The conferees are concerned that HUD has invested 
considerable time and resources in developing a policy 
statement that clarifies its position on lender-paid mortgage 
broker fees and their legality under the Real Estate Settlement 
Procedures Act. Congress never intended payments by lenders to 
mortgage brokers for goods or facilities actually furnished or 
for services actually performed to be violations of subsections 
(a) or (b) (12 U.S.C. Sec. 2607) in its enactment of RESPA. 
Publishing a policy statement could provide invaluable guidance 
to consumers, brokers, and the courts. The conferees are 
concerned about the legal uncertainty that continues absent 
such a policy statement. The conferees direct HUD to clarify 
its position on lender payments to mortgage brokers within 90 
days after the enactment of this appropriation Act. The 
conferees expect HUD to work with representatives of industry, 
Federal agencies, consumer groups, and other interested parties 
on this policy statement.
      HUD is instituting a new, computerized, uniform physical 
inspection requirement for its FHA-insured and its subsidized 
multifamily housing. This new requirement is part of the 
Department's efforts to obtain an objective, comprehensive 
assessment of the condition of the overall HUD multifamily 
portfolio. The conferees understand that the housing industry 
generally supports these efforts, but the initial 
implementation of this new procedure will impose cost burdens 
on private companies with existing contracts with mortgage 
investors. For purposes of prudent and equitable implementation 
of the new system, the conferees believe HUD should contract 
for a portfolio-wide baseline review of its multifamily housing 
stock. The conferees expect HUD to use money in the General 
Insurance and Special Risk Fund or section 8 amounts or other 
funding, as appropriate and proportional, for the purpose of 
paying for all or part of the cost of implementing the new 
physical inspection standards.

                    Policy Development and Research

                        Research and Technology

      Appropriates $47,500,000 for research and technology, 
including $10,000,000 for PATH, as proposed by the House 
instead of $36,500,000 as proposed by the Senate.
      Deletes language prohibiting funds from being used for 
demonstration programs unless they already exist or are 
authorized in this legislation, as proposed by the Senate. The 
conferees agree, however, that new demonstration programs not 
specifically authorized shall not receive funds from this 
account unless approved in the HUD Operating Plan or in a 
reprogramming request.
      Inserts a modification directing, rather than urging, HUD 
to collaborate with the Swope Parkway Health Center in Kansas 
City, as proposed by the Senate.
      Inserts direction to HUD requiring it to cooperate with 
other federal agencies and the housing industry, and to engage 
in PATH activities that will provide research, development, 
testing, and engineering protocols for building materials and 
methods, as described in the Industry Implementation Plan of 
the Residential National Construction Goals. The conferees 
direct HUD to furnish the VA, HUD and Independent Agencies 
subcommittees with an operating plan for PATH, including 
specific and measurable goals, no later than December 31, 1998, 
and a draft evaluation report describing progress made toward 
meeting those goals no later than April 30, 1999.
      Inserts direction requesting from HUD a report due by 
June 30, 1999, on the impact on the welfare population residing 
in federally subsidized public housing located in those states 
that have declined federal Welfare-to-Work funds to determine 
if any positive or negative impact has occurred because of the 
state's decision to decline these federal funds.

                   Fair Housing and Equal Opportunity

                        Fair Housing Activities

      Appropriates $40,000,000 for fair housing activities, as 
proposed by the House instead of $35,000,000 as proposed by the 
Senate. The conferees agree to the distribution of funds in the 
House report.
      Deletes language proposed by the Senate directing HUD to 
develop policy guidelines on aspects of Fair Housing by August 
1, 1999.

                     Office of Lead Hazard Control

                         Lead Hazard Reduction

      Appropriates $80,000,000 for lead hazard reduction, as 
proposed by the House instead of $70,000,000 as proposed by the 
Senate.
      Provides that $70,000,000 of the total appropriation 
shall be for lead hazard reduction, including $2,500,000 for 
CLEARCorps, as proposed by the House, and $10,000,000 shall be 
for the Healthy Homes Initiative, instead of $20,000,000 as 
proposed by the House. The conferees agree to the set-asides 
and directives contained in the House report.

                     Management and Administration

                         SALARIES AND EXPENSES

                     (Including Transfer of Funds)

      Appropriates $985,826,000 for salaries and expenses as 
proposed by the House instead of $992,826,000 as proposed by 
the Senate.
      Inserts language proposed by the Senate prohibiting HUD 
from employing more than 77 schedule C and 20 non-career SES 
employees.
      The House report requested a report from HUD regarding 
its procedures for determining whether various functions should 
be contracted out or performed in-house. The conferees are 
appreciative of HUD's timely response to this request, but are 
somewhat alarmed by the content of that response.
      HUD's response seems to be saying that its only real 
procedures for determining whether a function should be 
contracted out are those procedures required under OMB Circular 
A-76, but that the Department has not actually conducted an A-
76 review in a number of years. The response explains why, in 
HUD's view, this lack of reviews does not violate Circular A-
76. However, the Committee's concern was not so much whether 
HUD contracting out decisions violate the law, but rather 
whether these decisions make sense. In particular, the 
Committee was concerned that HUD's desire to meet stringent 
personnel reduction goals has led to contracting out of 
functions that could be performed more efficiently or less 
expensively in-house. The conferees reiterate these concerns, 
and urge the Department to reconsider whether it needs further 
controls and analytical procedures to make sure that 
contracting out is done only when it is cost effective to do 
so.

                      Office of Inspector General

                     (Including Transfers of Funds)

      Appropriates $81,910,000 for the Office of Inspector 
General, as proposed by the House instead of $66,850,000 as 
proposed by the Senate.
      Inserts language clarifying the Inspector General's 
authority over personnel matters within the Office of Inspector 
General.

             Office of Federal Housing Enterprise Oversight

                         Salaries and Expenses

                     (Including Transfer of Funds)

      Appropriates $16,000,000 for the Office of Federal 
Housing Enterprise Oversight (OFHEO) as proposed by the Senate, 
instead of $16,551,000 as proposed by the House.

                       ADMINISTRATIVE PROVISIONS

      Inserts modification to language proposed by the Senate 
by eliminating additional public and assisted housing reform 
extenders.
      Inserts language agreed to by the conferees clarifying 
Freddie Mac's ability to lower the costs of providing low 
downpayment loans by using lower cost methods of protecting 
against the risk of default with the approval of their safety 
and soundness regulator.
      Deletes language proposed by the House providing for a 
lower rent subsidy based on the cost of an efficiency apartment 
instead of a one-bedroom.
    Inserts language proposed by the Senate to provide 
incentives for refinancing multifamily projects originally 
financed with FAF bonds.
      Inserts language proposed by the Senate prohibiting 
prosecution of persons under the Fair Housing Act.
      Deletes language proposed by the Senate requiring public 
notice and comment in rulemaking procedures.
      Inserts modification to language proposed by the Senate 
to permanently make Brownfields an eligible activity under the 
CDBG program as proposed by the Senate.
      Inserts language proposed by the Senate providing HUD 
with flexibility to make rehabilitation grants and loans in 
disposing of HUD-owned and HUD-held properties.
      Deletes language proposed by the Senate making technical 
corrections to the Housing For Persons With AIDS (HOPWA) 
program.
      Deletes language proposed by the House to extend public 
housing reforms.
      Deletes language proposed by the House to delay for three 
months the reissuance of section 8 vouchers and certificates.
      Inserts language proposed by the House making changes to 
the HOPWA formula to correct anomalies that result in the loss 
of funds for a state when the incidence of AIDS in a large city 
within the state increases.
      Inserts language proposed by the House allowing PHAs to 
draw down capital grants funds on construction-related 
schedules and deposit the funds in an escrow account to 
collateralize bonds for construction and rehabilitation.
      Inserts language proposed by the House eliminating the 
shopping incentive in the section 8 program.
      Inserts language proposed by the House allowing HUD, 
through negotiated rulemaking, to review the current 
performance funding system (PFS).
      Inserts language proposed by the Senate extending HUD's 
multifamily mortgage insurance risk-sharing programs through 
fiscal year 1999.
      Inserts modification to language proposed by the Senate 
extending the FHA single-family streamlined downpayment 
demonstration program to every state.
      Inserts language proposed by the Senate providing funding 
for implementing IDIS.
      Inserts language proposed by the Senate making technical 
corrections to nursing home lease terms.
      Deletes language proposed by the Senate prohibiting the 
use of enterprise zones and empowerment communities as criteria 
in awarding program grants. The conferees have dropped the 
prohibition against HUD awarding additional grant points 
because a jurisdiction has been designated as an empowerment 
zone or enterprise community. Instead, HUD is directed to 
establish criteria for identifying high-performing empowerment 
zones and enterprise communities and to provide the committees 
with the criteria and a list of all high-performing empowerment 
zones and enterprise communities. HUD further is directed to 
provide bonus points, where appropriate, only to such high-
performing areas for purposes of awarding grants.
      Deletes language proposed by the Senate requiring HUD to 
notify the Committees on Appropriations of all grant awards at 
least 24 hours before public or privateannouncements. The 
conferees are concerned that HUD has not provided adequate notice of 
awards on a timely basis and expect HUD to make timely notice of awards 
to all members, regardless of party affiliation.
      Inserts language proposed by the Senate enabling Native 
Americans to have access to the use of emergency CDBG funds.
      Deletes language proposed by the Senate requiring HUD to 
make all recaptured funds subject to a reprogramming request.
      Deletes language proposed by the Senate prohibiting HUD 
from providing tuition payments under the community builders 
program. The conferees believe that education and educational 
opportunities are an important component of federal employment, 
but remain concerned over some costs that may be considered 
excessive. The conferees direct HUD, as part of its operating 
plan, to provide a review of all education programs and 
activities (including the Community Builders program) available 
to HUD employees, as well as a breakdown of all costs 
associated with these programs and activities. All proposed 
programs and activities shall be subject to approval as part of 
the operating plan approval process.
      Inserts language proposed by the Senate to provide 
funding flexibility to a project in Bismarck, North Dakota.
      Inserts language proposed by the House extending for one 
year a provision that waives the 15% public service cap for the 
City and County of Los Angeles. The conferees note their 
concern, however, about continuing this extension beyond this 
fiscal year. Therefore, HUD is directed to provide a report to 
the Subcommittees on VA, HUD and Independent Agencies on what 
the City and County do with these additional funds. In the 
report, the City and County should explain the nexus between 
the public services cap and the riots for which the cap was 
waived.
      Deletes language proposed by the Senate making technical 
changes to portfolio reengineering legislation.
      Inserts a modification to language proposed by the Senate 
requiring five months notice to residents and local governments 
of an owner's intent to prepay the mortgage note in 
preservation-eligible projects. The conferees direct HUD to 
provide guidance regarding the notice requirement so that it 
includes an explanation of alternative housing assistance, such 
as enhanced housing vouchers, that will be made available to 
residents in buildings where affordability restrictions are 
removed.
      Inserts language proposed by the Senate clarifying that 
Indian Housing Authorities or tribally designated housing 
entities are eligible to receive Drug Elimination Grants.
      Inserts language proposed by the Senate authorizing HUD 
to provide information and to buy information on the 
multifamily FHA-insured program.
      Inserts language proposed by the Senate allowing HUD to 
auction HUD-held and HUD-owned multifamily mortgages until 
December 31, 2002.
      Inserts language proposed by the Senate redirecting 
$250,000 to the Central Vermont Revolving Loan Fund.
      Inserts modification to language proposed by the Senate 
requiring HUD to provide an annual report to Congress on 
management deficiencies found in the FHA audited financial 
statement by eliminating language that conditions 
implementation of the FHA loan limits on receipt of this 
report.
      Deletes language proposed by the Senate requiring owners 
of preservation-eligible properties to file a one-year notice 
of prepayment.
      Inserts modification to language proposed by the Senate 
requiring disclosure to consumers about the costs of FHA-
insured mortgages as compared to conventionally insured 
mortgages and by changing the effective date of the disclosure.
      Inserts modification to language proposed by the Senate 
by making excess rent rules applicable to certain section 236 
projects.
      Inserts modification to language increasing the FHA 
single family loan limits, as proposed by the Senate, allowing 
uniformity within metropolitan statistical areas.
      Inserts language which would recapture 1996 HOPE VI grant 
funds awarded to the Housing Authority of Baltimore City (HABC) 
for development efforts at the Hollander Ridge housing 
development. The funds are to be recaptured if HUD decides to 
rescind the grant award. The bill also includes language which 
directs HUD to award the recaptured funds to HABC if HABC 
applies for a future HOPE VI grant for Hollander Ridge and the 
application meets the criteria of the applicable NOFA.
      Inserts language agreed to by the conferees canceling any 
liability to the Federal Government for outstanding principal 
balance of the public facilities loan for the Town of Hobson 
City, Alabama.
      Inserts language agreed to by the conferees providing a 
one day grace period for the City of Wichita and Sedgwick 
County, Kansas, for submission of Continuum of Care Homeless 
Assistance program.
      Inserts new language increasing the community development 
block grants public service cap for the City of Miami. The City 
of Miami shall provide an annual report to HUD and the 
Committees on Appropriations on the use of these public service 
funds. The Department shall provide the Committees on 
Appropriations with a report on the lessons learned by the 
City's use of these funds.

                    TITLE III--INDEPENDENT AGENCIES

                  American Battle Monuments Commission

                         SALARIES AND EXPENSES

      Appropriates $26,431,000 for salaries and expenses as 
proposed by the House instead of $26,931,000 as proposed by the 
Senate. The amount provided represents an increase of 
$2,500,000 above the budget request, which the conferees expect 
will be used by the Commission to continue reducing the backlog 
of maintenance requirements.
      Language proposed by the Senate with respect to the 
Liberty Memorial Monument has not been retained.

             Chemical Safety and Hazard Investigation Board

                         SALARIES AND EXPENSES

      Appropriates $6,500,000 for salaries and expenses as 
proposed by the House and the Senate. Language contained in 
both the House and Senate bills which would limit the Board to 
three career Senior Executive Service positions has been 
retained.

                       Department of the Treasury

              COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

   COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM ACCOUNT

      Appropriates $80,000,000 for the Community Development 
Financial Institutions Fund, as proposed by the House, instead 
of $55,000,000 as proposed by the Senate. The conferees 
encourage the CDFI to give full and equal consideration to 
credit unions and specialized community development credit 
unions as eligible entities for grants, loans, and technical 
assistance. By their very existence, credit unions are 
grassroots community development institutions, and the CDFI 
should encourage and assist credit unions in taking a lead in 
their communities.

                   Consumer Product Safety Commission

                         Salaries and Expenses

      Appropriates $47,000,000 for the Consumer Product Safety 
Commission, salaries and expenses, instead of $46,000,000 as 
proposed by the House and $46,500,000 as proposed by the 
Senate. The conferees agree to delete a general provision which 
was included in the House bill which appropriated an additional 
$5,000,000 for this account.
      The conferees have included language in the bill which 
requires the Commission to contract with the National Academy 
of Sciences' Committee on Toxicology to study the potential 
toxicologic risks of all flame-retardant chemicals identified 
by the Commission as likely candidates for use in residential 
upholstered furniture for the purpose of meeting regulations 
proposed by the Commission for flame resistance of residential 
upholstered furniture. The NAS study shall assess toxicologic 
hazards to human health, including carcinogenicity, 
mutangenicity, neurotoxicity, and other chronic and acute 
effects to consumers exposed to fabrics intended to be used in 
residential upholstered furniture which would be chemically 
treated to meet the Commission's proposed flame resistance 
standards. The study shall also assess potential human 
exposures to such flame-retardant chemicals in residential 
upholstered furniture, and research needed to fill important 
data gaps related to toxicologic risks of flame-retardant 
chemicals. The NAS shall complete the report within 12 months 
of finalizing arrangements with the Commission, and shall 
submit the final report to the Congress. The Commission, before 
promulgating any notice of proposed rulemaking or final rule 
setting flammability standards for residential upholstered 
furniture, shall consider fully the findings of the NAS. The 
conferees have provided $500,000 for the NAS study.
      In addition, the conferees direct that the General 
Accounting Office conduct a review of the process the 
Commission has conducted regarding a possible rulemaking 
establishing a standard for upholstered furniture flammability, 
including consideration of the potential toxicity of the 
chemicals which would be used as flame retardants, cost-benefit 
analysis, and consideration of the percentage of residential 
fire deaths stemming from small open flames relative to other 
sources. As part of this study, the conferees request the GAO 
to review the major causes of household fires, including fires 
caused by cigarette smoking and small open flames. The 
Commission is to consider the GAO findings and recommendations 
prior to promulgating a final rule on upholstered furniture 
flammability. This issue is addressed in Section 423.
      The conferees direct the General Accounting Office to 
study and report on the effect of the child sleepwear standard 
currently in effect as a result of changes adopted by the 
Consumer Product Safety Commission in January, 1997. The GAO is 
to review children's burn incident data for the 18-month period 
of July 1997 through January 1999 and compare this data to 
child burn incident data from the prior four years. GAO shall 
also assess the information and education campaign which has 
been undertaken by the Commission and the apparel and retail 
industry since the new standards took effect in January 1997, 
to determine whether it effectively maximized children's 
safety. The Commission shall consider and substantively address 
the findings of the GAO and additional information collected 
through the National Electronic Information Surveillance System 
on burn data as it considers revisions to the children's 
sleepwear standards. This issue is addressed in section 429.

             Corporation for National and Community Service

       NATIONAL AND COMMUNITY SERVICE PROGRAMS OPERATING EXPENSES

      Appropriates $425,500,000 for national and community 
service programs operating expenses as proposed by the Senate. 
The House proposed termination of the Corporation for National 
and Community Service from funds appropriated in fiscal year 
1998.
      Limits funds for administrative expenses to not more than 
$28,500,000, instead of $27,000,000 as proposed by the Senate. 
The conferees agree that additional funds are needed to achieve 
better financial management, and have provided $1,500,000 above 
the fiscal year 1998 level with the expectation that the 
Corporation will find $1,500,000 from existing lower priority 
administrative expenses activities and redirect those funds to 
urgent program administration needs such as financial 
management, data base and related financial systems 
development, and Year 2000 computer problems. The conferees 
note that approximately the same level of funding is provided 
for administrative expenses of the Corporation in the Labor-
Health and Human Services-Education appropriations bill, making 
a total of approximately $57,000,000 available for program 
administration. To ensure the availability of additional funds 
for these urgent program administration needs, the conference 
agreement also includes bill language earmarking not to exceed 
$3,000,000 of administrative expenses funding for this purpose. 
In addition, the conferees understand that the majority of the 
$3,000,000 appropriated in fiscal year 1996 for reforms of the 
financial management system will be spent in fiscal years 1999 
and 2000. The $3,000,000 appropriated in this bill, together 
with $3,000,000 appropriated in fiscal year 1996, will provide 
significant funding to improve financial management and other 
urgent program administration activities.
      The conferees intend that the Corporation will submit to 
the House and Senate Committees on Appropriations within 60 
days of the enactment of this Act a detailed plan for the 
expenditure of the $3,000,000 in funds reserved to meet urgent 
program administration needs. Further, the Corporation will 
provide regular updates to the House and Senate Committees on 
Appropriations every 60 days on the use of these funds in 
accordance with that plan. The conferees also intend that the 
Office of Inspector General will, within 30 calendar days after 
the submission of each such report, including the plan for the 
expenditure of the $3,000,000 for urgent needs, independently 
review and comment upon each report submitted by the 
Corporation.
      Limits funds for quality and innovation activities to not 
more than $28,500,000, instead of $30,000,000 as proposed by 
the Senate.
      Limits funds as proposed by the Senate to not more than: 
$2,500 for official reception and representation expenses; 
$70,000,000 for education awards, of which not to exceed 
$5,000,000 shall be available for national service scholarships 
for high school students performing community service; 
$227,000,000 for AmeriCorps grants, of which not to exceed 
$40,000,000 may be for national direct programs; $5,500,000 for 
the Points of Light Foundation; $18,000,000 for the civilian 
community corps; $43,000,000 for school-based and community-
based service-learning programs; and $5,000,000 for audits and 
other evaluations.
      Inserts language proposed by the Senate which prohibits 
using any funds for national service programs run by Federal 
agencies; provides that, to the maximum extentfeasible, funds 
for the AmeriCorps program will be provided consistent with the 
recommendation of peer review panels; and provides that, to the maximum 
extent practicable, the level of matching funds shall be increased, 
education only awards shall be expanded, and the cost per participant 
shall be reduced.
      The House proposed that the Corporation be terminated and 
did not include any of the foregoing limitations or provisions 
proposed by the Senate.

                      OFFICE OF INSPECTOR GENERAL

      Appropriates $3,000,000 for the Office of Inspector 
General as proposed by the Senate. The House proposed the 
orderly termination of the Office of Inspector General from 
previously appropriated funds.

                       Court of Veterans Appeals

                         SALARIES AND EXPENSES

      Appropriates $10,195,000 for salaries and expenses as 
proposed by the House, instead of $10,000,000 as proposed by 
the Senate.

                    Environmental Protection Agency

                         SCIENCE AND TECHNOLOGY

      Appropriates $650,000,000 for science and technology 
instead of $656,505,000 as provided by the House and 
$643,460,000 as provided by the Senate.
      The conferees have agreed to the following increases to 
the budget request:
      1. $1,250,000 for continuation of the California Regional 
PM 10 and 2.5 air quality study.
      2. $2,500,000 for EPSCoR.
      3. $400,000 for continuation of the study of livestock 
and agricultural pollution abatement at Tarleton State 
University.
      4. $3,000,000 for the Water Environment Research 
Foundation.
      5. $2,700,000 for continued research on urban waste 
management at the University of New Orleans.
      6. $800,000 to establish an environmental molecular 
toxicology program at the University of Montana.
      7. $2,000,000 for the Mickey Leland National Urban Air 
Toxics Research Center.
      8. $4,000,000 for the American Water Works Association 
Research Foundation, including $1,000,000 for continued 
research on arsenic.
      9. $2,000,000 for the National Decentralized Water 
Resource Capacity Development Project, in coordination with 
EPA, for continued training and research and development 
program.
      10. $1,500,000 for the Integrated Petroleum Environmental 
Consortium project.
      11. $800,000 for the National Center for Atlantic and 
Caribbean Reef Research at the Rosenstiel School of Marine and 
Atmospheric Science.
      12. $1,900,000 for continued Salton Sea research, at the 
University of Redlands.
      13. $1,800,000 for continued research on treatment 
technologies relating to perchlorate managed by AWWARF on 
behalf of the East Valley Water District, California.
      14. $2,000,000 for the Lovelace National Environmental 
Respiratory Center.
      15. $4,000,000 to CE-CERT at the University of 
California/Riverside for the development of a next generation 
environmental chamber to enable advanced research into 
atmospheric processes under low NOX conditions 
($3,000,000) and for the development of test track research 
facilities ($1,000,000).
      16. $800,000 to the University of New Hampshire to 
develop, test, and evaluate innovative technologies for 
enhanced bioremediation of organically contaminated bedrock 
aquifers.
      17. $2,500,000 for the Gulf Coast Hazardous Substance 
Research Center.
      18. $1,000,000 for the development, design, and 
implementation of a research effort on tributyltin based ship 
bottom paints at Old Dominion University.
      19. $1,750,000 for the National Jewish Medical and 
Research Center for research on the relationship between indoor 
and outdoor pollution and the development of respiratory 
diseases.
      20. $800,000 for the university portion of the Southern 
Oxidants Study.
      21. $1,250,000 for the Center for Air Toxic Metals at the 
Energy and Environmental Research Center.
      22. $1,000,000 for the Texas Regional Institute for 
Environmental Studies to test new cost-effective environmental 
restoration technologies.
      23. $1,000,000 for the Institute for Environmental and 
Industrial Science at Southwest Texas State University.
      24. $6,000,000 for the Mine Waste Technology Program and 
the Heavy Metal Water Program at the National Environmental 
Waste Technology, Testing, and Evaluation Center.
      25. $1,000,000 for the Alabama Center for Estuarine 
Studies.
      26. $2,000,000 for the Center for Environmental Research, 
Education and Training at the University of Maryland-Baltimore 
County, for research on watershed science, ecological and 
environmental impacts of urban and suburban development, fate 
and transport of contaminants from urban and rural land use, 
and analysis of large spatial data sets.
      27. $500,000 for the Brazos River Authority for poultry 
pollution abatement research in the Brazos Navasota watershed.
      The conferees have agreed to the following reductions 
from the budget request:
      1. $19,955,000 from the climate change research program.
      2. $6,358,000 from the global change research program.
      3. $4,000,200 from the Advanced Measurement Initiative.
      4. $8,372,000 from the Project EMPACT.
      5. $11,654,800 as a general reduction.
      Within the funds provided for science and technology, the 
conferees direct that $2,000,000 be used to continue the 
initiative to transfer technology developed in Federal 
laboratories to meet the environmental needs of small companies 
in the Great Lakes region. This initiative should be 
accomplished through a NASA sponsored Midwest regional 
technology transfer center working in collaboration with an 
HBCU from the region.
      For fiscal year 1999, the conferees have provided 
$46,700,000 for continued research on particulate matter (PM), 
an increase of $18,000,000 above the budget request. The 
conferees note that the actual obligation of 1998 funds has, 
for many reasons, not proceeded at the pace originally 
expected. Nevertheless, the Agency has established July, 2002 
as the date for completion of the next NAAQS review, and it is 
thus imperative that research be well underway and where 
possible, providing important data for the review and decision-
making process. The conferees strongly commend the Agency for 
its fine efforts to date in working with the National Academy 
of Sciences (NAS) and others on this important research matter, 
and expect that the research funds provided for fiscal year 
1999 will be obligated as quickly as possible. In this regard, 
the Agency is instructed not to await approval of the annual 
operating plan prior to obligation of these funds.
      As previously noted, the Agency has established July, 
2002 as the date for completion of the next NAAQS review. 
Because of the time necessary to conduct additional PM 
research, the conferees are concerned that the schedule 
established by EPA may not allow for adequate consideration of 
research that will result from the enhanced fiscal years 1998 
and 1999 appropriations. The conferees strongly urge EPA to 
amend its PM NAAQS review schedule by reducing the Agency's 
drafting time and internal review time to provide as much time 
as possible for the consideration of new research.
      Finally, with respect to the speciation component of the 
Agency's PM monitoring plan, the conferees request that the NAS 
assist EPA's Clean Air Science Advisory Committee (CASAC) by 
providing recommendations regarding the number and location of 
monitors and specific objectives and operating conditions for 
the various types of speciation monitors in EPA's plan. Also, 
NAS should evaluate the adequacy of the speciation component of 
the monitoring plan to characterize those constituents of PM 
that are biologically active. The NAS is expected to facilitate 
a thorough peer review of the speciation component of EPA's 
monitoring plan by CASAC.
      EPA's recently published Contaminated Sediment Management 
Strategy states that EPA will not proceed with clean-up of a 
contaminated sediment site if the short-term and long-term 
impacts of dredging are determined to cause more environmental 
harm than leaving the contaminants in place. The conferees 
believe, however, that EPA is proceeding with some orders to 
dredge even though the evaluations called for in EPA's own 
policies have not been undertaken. Further, a National Academy 
of Sciences evaluation of dredging technology required by the 
House Appropriations Committee in fiscal year 1998, is not yet 
available. The conferees expect EPA will implement its 
Contaminated Sediment Management Strategy by evaluating the 
short-term and long-term impacts of the proposed clean-up in 
relation to the reduction of risks to human health and the 
environment and other benefits.
      It is vital that EPA and the Congress have the benefit of 
the NAS study on remediation technologies for contaminated 
sediments, including dredging, to assess theability of various 
methods to attain the environmental objectives of the remediation, and 
the potential of these methods to cause greater harm to the environment 
or other problems. The conferees urge EPA to await the completion of 
the NAS study before spending any Superfund money on dredging, 
initiating any new dredging action, or issuing any more dredging 
orders. Exceptions to this should be considered where EPA has found on 
the record that the contaminated sediment poses a significant threat to 
the public health to which an urgent or time critical response is 
necessary, remedial and/or removal alternatives to dredging have been 
fully evaluated, an appropriate site for disposal of the contaminated 
material has been selected, and the potential impacts of dredging, 
associated disposal, and alternatives have been explained to the 
affected community. The Agency should take all reasonable steps to 
assure the expeditious completion of the NAS study.
      The conferees understand that portions of EPA's 1994 
draft dioxin reassessment have been widely criticized within 
the scientific community and by EPA's own Science Advisory 
Board (SAB). The SAB's report, ``A Second Look at Dioxins'' 
(November 1995) noted numerous weaknesses with the risk 
characterization and dose-response chapters of the 
reassessment. In particular, the SAB criticized EPA's 
conclusion that dioxins have the potential to produce a broad 
spectrum of effects in humans at or near current background 
levels. The SAB directed EPA to ensure that its conclusions 
were based on a more complete consideration of available 
scientific studies.
      The conferees understand that EPA is preparing to release 
a revised reassessment for public review, followed by a second 
SAB review. The final dioxin reassessment, particularly the 
risk characterization chapter, will provide the basis for 
future federal policies and regulations relating to dioxin and 
other chemicals. The conferees believe it is essential that EPA 
fully address concerns raised by the SAB and recommend that the 
Agency reconvene a SAB panel which would include those members 
of the original Panel whose expertise is germane to the 
redrafted portions of the reassessment.
      There are several aspects of tropospheric ozone formation 
that would benefit from targeted research and investigation, 
including NOX-limited conditions (as can be the case 
in rural areas and urban areas with cleaner air), multi-day 
stagnation events, and the changes in levels of ozone and 
particulate matter caused by emissions of ozone precursors in 
ambient air. Therefore, the conferees are providing $3,000,000 
for the development of an environmental chamber to enable 
scientific research into the atmospheric processes involved in 
the formation of ozone and particulate matter. More precise 
tools are required to improve understanding and modeling of the 
potential of volatile organic compounds (VOCs) to affect ozone 
formation in the ambient air, including the process that forms 
pollutants in rural and cleaner urban environments, as 
recommended by the 1991 National Academy of Sciences/National 
Research Council's ``Rethinking the Ozone Problem in Urban and 
Regional Air Pollution.'' The new large chamber will provide 
information that EPA and state regulators can use to develop 
more cost-effective strategies for controlling pollution. In 
particular, this chamber will allow more accurate measurements 
of positive and negative reactivity of VOC emissions from 
architectural coatings.
      Not later than 45 days after the date of enactment of 
this Act, the Administrator of the Environmental Protection 
Agency (EPA) shall enter into an agreement with the National 
Academy of Sciences (NAS) to conduct a comprehensive study of 
the effects of copper in drinking water on human health. Once 
completed, the Administrator of the EPA shall review the NAS 
study, and report to the Congress on what plans the agency has 
to review the copper action level pursuant to section 
1412(b)(9) of the Safe Drinking Water Act.

                 ENVIRONMENTAL PROGRAMS AND MANAGEMENT

      Appropriates $1,848,000,000 for environmental programs 
and management instead of $1,856,000,000 as proposed by the 
House and $1,840,500,000 as proposed by the Senate. The 
conferees have included bill language providing a limitation on 
the use of funds to implement or administer the interim 
guidance relating to title VI of the Civil Rights Act of 1964, 
with certain exceptions, as proposed by the House. The 
conferees note that this provision does not provide the Agency 
statutory authority to implement its Environmental Justice 
Guidance. Rather, it simply clarifies the applicability of the 
Interim Guidance with respect to certain pending cases as an 
administrative convenience for the Agency. With respect to any 
cases that may be pending before EPA and that are not or will 
not be covered by the Interim Guidance, the conferees urge EPA 
to resolve such cases as expeditiously as possible and without 
undue delay.
      It is the conferees' understanding that the currently 
filed South Bronx complaint is covered by the Interim Guidance 
and should be dealt with expeditiously.
      The conferees have also adopted new language prohibiting 
the use of funds to take certain actions for the purpose of 
implementing or preparing to implement the Kyoto Protocol, 
instead of language proposed by the House. The conferees note 
that this restriction on the use of funds shall not apply to 
the conduct of education activities and seminars by the Agency.
      The conferees note that several programs funded through 
this Act conduct science and technology research that are 
associated partly with global climate change. To the extent 
that the conferees have funded this work, they have done so 
based on each program's individual merits of contributing to 
issues associated with domestic energy production, national 
energy security, energy efficiency and cost savings, related 
environmental assessments, and general energy emission 
improvements. The bill language is intended to prohibit funds 
provided in this bill from being used to implement actions 
called for solely under the Kyoto Protocol, prior to its 
ratification.
      The Byrd-Hagel Resolution which passed in 1997 (S. Res. 
98) remains the clearest statement of the will of the Senate 
with regards to the Kyoto Protocol, and the conferees are 
committed to ensuring that the Administration not implement the 
Kyoto Protocol without Congressional consent. The conferees 
recognize, however, that there are also longstanding energy 
research programs which have goals and objectives that, if met, 
could have positive effects on energy use and the environment. 
The conferees do not intend to preclude these programs from 
proceeding, provided they have been funded and approved by 
Congress.
      To the extent future funding requests may be submitted 
which would increase funding for climate change activities 
prior to Senate consideration of the Kyoto Protocol (whether 
under the auspices of the Climate Change Technology Initiative 
or any other initiative), the Administration must do a better 
job of explaining the components of the programs, their 
anticipated goals and objectives, the justification for any 
funding increases, a discussion of how success will be 
measured, and a clear definition of how these programs are 
justified by goals and objectives independent of implementation 
of the Kyoto Protocol. The conferees expect these items to be 
included as part of the fiscal year 2000 budget submission for 
all affected agencies.
      The conferees have agreed to the following increases to 
the budget request:
      1. $2,500,000 for the Michigan Biotechnology Institute 
for continued development of viable cleanup technologies.
      2. $1,300,000 for the Lake Wallenpaupack, Pennsylvania 
environmental restoration project.
      3. $130,000 for the Saint Vincent watershed environmental 
restoration project.
      4. $500,000 for continued activities of the Small 
Business Pollution Prevention Center at the University of 
Northern Iowa.
      5. $1,300,000 for the Great Lakes National Program 
Office.
      6. $750,000 for the painting and coating compliance 
project at the University of Northern Iowa.
      7. $550,000 for continuation of the Idaho Water 
Initiative.
      8. $1,700,000 for the Sacramento Regional County 
Sanitation District to continue the cost-shared Sacramento 
River Toxic Pollution Control Project. This appropriation and 
previously appropriated funds shall be administered by the 
Sacramento Regional County Sanitation District in accordance 
with the workplans submitted by the District.
      9. $1,300,000 for continuation of a water reuse 
demonstration project in Yucca Valley ($500,000) and the 
continuation of a water distribution system study in Twentynine 
Palms ($800,000), California.
      10. $600,000 for ongoing activities at the Canaan Valley 
Institute.
      11. $3,000,000 for the Southwest Center for Environmental 
Research and Policy (SCERP).
      12. $2,600,000 for the National Institute for 
Environmental Renewal to establish a regional environmental 
data center, and to develop an integrated, automated water 
quality monitoring and information system for watersheds 
impacting the Chesapeake Bay.
      13. $500,000 for continuation of the Small Water Systems 
Institute at Montana State University.
      14. $11,362,000 for rural water technical assistance 
activities and groundwater protection for a total program level 
of $13,050,000. The distribution of funds is as follows: 
$8,000,000 for the National Rural Water Association; $2,100,000 
for the Rural Community Assistance Program; $400,000 for the 
Groundwater Protection Council; $1,550,000 for Small Flows 
Clearinghouse; and $1,000,000 for the National Environmental 
Training Center.
      15. $900,000 for implementation of the National Biosolids 
Partnership Program.
      16. $3,000,000 for continuation of the New York and New 
Jersey dredge decontamination project.
      17. $900,000 for continued work on the water quality 
management plans for the Onondaga and Cayuga County, New York 
watersheds.
      18. $400,000 for continued work on the Cortland County, 
New York aquifer protection plan, $150,000 of which is for 
planning and implementation of the Upper Susquehanna watershed.
      19. $900,000 for continued work on the Soil Aquifer 
Treatment Demonstration Project.
      20. $400,000 for operation of the Long Island Sound 
Office.
      21. $900,000 for the Southern Appalachian Mountain 
Institute.
      22. $900,000 for continued operations of the California 
Urban Environmental Research and Education Center.
      23. $1,300,000 for a one-year demonstration of Project 
SEARCH (Special Environmental Assistance for Regulations of 
Communities and Habitat) in Idaho.
      24. $2,200,000 for the National Center for Excellence for 
Environmental Management at the University of Findlay.
      25. $400,000 to analyze the environmental and public 
health impacts of waste transfer stations in Hunts Point, South 
Bronx, New York, with inclusion of the community in the design 
and implementation of the study.
      26. $100,000 to the Miami-Dade County Department of 
Environmental Resources management to expand the existing 
education program.
      27. $200,000 for the Snohomish River Basin Work Group to 
perform a comprehensive watershed analysis, including a 
quantitative water quality study of the Snohomish River. 
Special attention in the study should be given to the lower 
reaches of the river.
      28. $2,200,000 for the Federal Energy Technology Center 
and EPA Region III to conduct a comprehensive acid mine 
drainage cleanup program.
      29. $400,000 to initiate a surface water improvement 
demonstration project in Mecklenberg, North Carolina.
      30. $125,000 to the University of Louisville for the 
establishment of a regional environmental finance center at the 
Kentucky Institute for the Environment and Sustainable 
Development.
      31. $200,000 to Ventura County, California for 
development of the Calleguas Creek watershed management plan.
      32. $2,600,000 to Lycoming County, Pennsylvania to assist 
in the development of a comprehensive CSO plan.
      33. $2,200,000 to the Lake Pontchartrain Basin Foundation 
circuit rider water quality initiative in Fluker Chapel and 
Mandeville, Louisiana.
      34. $3,100,000 for the Environmental Technology 
Commercialization Center (ETC2) in Cleveland, Ohio.
      35. $2,000,000 to support efforts to address the causes, 
mechanisms, and health and environmental effects of Pfiesteria.
      36. $500,000 for treatment of uranium contamination of 
well heads within the Morongo Valley Community Service 
District, California.
      37. $3,000,000 for the New River, California 
environmental restoration project by the Imperial Irrigation 
District.
      38. $8,500,000 to the Salton Sea Authority for extensive 
planning, development, and permitting requirements.
      39. $650,000 for water restoration activities at the City 
of Stockton, California.
      40. $650,000 for watershed management initiatives at 
Santa Ana River, Riverside County, California.
      41. $320,000 for the St. Mary's River, Maryland watershed 
management and monitoring program.
      42. $1,500,000 for training grants under 104(g) of the 
Clean Water Act.
      43. $500,000 for the Small Public Water System Technology 
Center at Western Kentucky University.
      44. $500,000 for the Small Public Water System Technology 
Center at the University of Missouri-Columbia.
      45. $500,000 for the Small Public Water System Technology 
Center at the University of New Hampshire.
      46. $3,000,000 to continue the demonstration project 
involving leaking fuel tanks in rural Alaska villages.
      47. $1,000,000 for water quality monitoring in the 
Tennessee River basin through the Alabama Department of 
Environmental Management.
      48. $1,250,000 to continue the onsite wastewater 
treatment demonstration program through the Small Flows 
Clearinghouse.
      49. $2,000,000 for the New York City watershed protection 
program.
      50. $500,000 for EPA's Office of Sustainable Ecosystems 
and Communities and the Hawaii Department of Health to conduct 
demonstration projects to aid communities on the islands of 
Maui and Molokai to meet successfully the water quality 
permitting requirements for rehabilitating native Hawaiian fish 
ponds.
      51. $2,500,000 for the King County, Washington molten 
carbonate fuel cell demonstration project.
      52. $800,000 for the National Center for Vehicle 
Emissions Control and Safety for onboard diagnostic research.
      53. $5,000,000 under section 104(b) of the Clean Water 
Act for America's Clean Water Foundation for implementation of 
on-farm environmental assessments for hog production 
operations, with the goal of improving surface and groundwater 
quality.
      54. $500,000 for the Coordinated Tribal Water Quality 
Program through the Northwest Indian Fisheries Commission.
      55. $500,000 for the Ala Wai Canal watershed improvement 
project.
      56. $500,000 for a study of dioxin in the Ohio River 
basin.
      57. $100,000 to continue the Design for the Environment 
for Farmers Program to address the unique environmental 
concerns of the American Pacific area and the need to develop 
and adopt sustainable agricultural practices for these fragile 
tropical ecosystems.
      58. $1,000,000 for the Lake Champlain management plan.
      59. $1,500,000 for the National Alternative Fuels Vehicle 
Training Program.
      60. $250,000 for a pilot program to evaluate the most 
cost-effective technologies for treating non-point sources of 
phosphorus in the Lake Sammamish, Washington watershed.
      61. $250,000 to work with farmers and the Natural 
Resources Conservation Service in Vermont to adopt best 
management practices to reduce phosphorus runoff into Lake 
Memphremagog.
      62. $750,000 for the Chesapeake Bay Small Watershed 
Grants Program.
      63. $1,000,000 to strengthen the State Small Business 
Ombudsman and Technical Assistance programs as authorized by 
section 507 of the Clean Air Act.
      64. $500,000 for the Office of Regulatory Management and 
Information (ORMI) to involve small local governments in the 
regulatory process as envisioned by the Regulatory Flexibility 
Act (RFA) and the Small Business Regulatory Enforcement 
Fairness Act (SBREFA). ORMI serves as the coordinating body for 
EPA's SBREFA compliance. SBREFA and RFA require EPA to notify 
small entities--small businesses and small local governments--
and actively involve them in the rulemaking process, including 
participation on SBREFA panels.
      65. $200,000 for the Hawaii Department of Agriculture and 
the University of Hawaii College of Tropical Agriculture and 
Human Resources to develop agriculturally based remediation 
technologies.
      66. $100,000 for the City of Philadelphia to study the 
impact on the Delaware River watershed of vacant and abandoned 
land in Philadelphia, determine the environmental and economic 
benefits of remediation, and implement mitigation measures.
      67. $2,000,000 for the Food and Agricultural Policy 
Research Institute's Missouri watershed initiative project to 
link economic and environmental data with ambient water 
quality.
      68. $1,000,000 for the Animal Waste Management Consortium 
through the University of Missouri, working with Iowa State, 
North Carolina State, Michigan State, Oklahoma State, and 
Purdue Universities to supplement ongoing research, 
demonstration, and outreach projects associated with animal 
waste management.
      69. $500,000 for the Environmentors projects involving 
the matching of young people with environmental science 
professionals to work on environmentally oriented research 
projects.
      70. $1,000,000 for the City of West Palm Beach, Florida 
for its wetlands-based potable water reuse program including 
stormwater and wastewater recycling.
      71. $300,000 for the Dry Creek Channel project in Sandy, 
Utah, to design and implement a non-point source project in 
conjunction with the ongoing Jordan River non-point source 
project, including the creation of wetlands to control urban 
stormwater runoff.
      72. $2,000,000 for the University of Missouri 
Agroforestry Center to support the agroforestry floodplain 
initiative on non-point source pollution.
      73. $300,000 for the Northeast States for coordinated air 
use management.
      74. $1,000,000 for the Columbia Basin groundwater 
management assessment.
      75. $500,000 for the Urban Rivers Awareness Program at 
the Academy of Natural Sciences in Philadelphia to develop a 
new environmental science program.
      76. $2,000,000 for education, outreach, technical 
studies, and training to minimize lead hazards created during 
home improvement and repainting projects. To make lead dust 
testing more available and affordable, the conferees urge EPA 
to develop a relevant one-day sampling technician training 
course and to encourage recognition of this discipline.
      77. $1,000,000 for an expansion of EPA's efforts related 
to the government purchase and use of environmentally 
preferable products under Executive Order 12873, including life 
cycle analysis.
      78. $200,000 to develop a technical guidance manual for 
use by permit reviewers and product specifiers to ensure 
appropriate uses of preserved wood in applications including 
housing, piers, docks, bridges, utility poles, and railroad 
ties.
      79. $2,000,000 for the State of Missouri Department of 
Natural Resources for a clandestine methamphetamine lab cleanup 
project.
      80. $200,000 for the Fairmount Water Works Interpretive 
Center for environmental education activities.
      81. $500,000 for the CCAR-Greenlink Compliance Assistance 
Center.
      82. $500,000 for the City of Gainesville to address 
stormwater discharges from the Sweetwater Basin into Paines 
Prairie and the Florida Aquifer.
      83. $400,000 for the Small Water Systems Technology 
Assistance Center at the University of Alaska in Sitka.
      84. $500,000 for the Treasure Valley Hydrologic project.
      85. $150,000 to sample and conduct hydrologic 
investigations of occurrence, distribution, and characteristics 
of radium in groundwater in the Magothy and Patapsco Aquifers 
in Anne Arundel, Baltimore and Harford Counties, Maryland.
      86. $225,000 to enable the EPA and the Maryland Bureau of 
Mines to map and conduct a geologic/hydrologic investigation of 
the Kempton Abandoned Mine Complex in West Virginia and 
Maryland.
      87. $225,000 to support a cooperative research and 
demonstration project with the State of Maryland to determine 
the feasibility of using poultry litter as a fuel to generate 
electric power.
      88. $400,000 for Iberville Parish, Louisiana, to complete 
cleanup of Water District #3.
      The conferees have agreed to the following reductions 
from the budget request:
      1. $1,598,000 from the Urban Livability Program.
      2. $1,000,000 from the OSWER Chemical Action Prevention 
program.
      3. $1,000,000 from GLOBE.
      4. $9,638,000 from the Montreal Protocol Multilateral 
Fund.
      5. $86,002,000 from Climate Change Technology Initiative.
      6. $10,331,000 from Office of Enforcement programs.
      7. $11,500,000 from Project EMPACT.
      8. $126,218,000 as a general reduction. In determining 
the base from which to apply the general reduction specified 
for this account, the Agency shall first deduct from the total 
the items of Congressional interest specifically listed in the 
conference report and statement of the managers for the fiscal 
year 1999 VA-HUD and Independent Agencies Appropriations Act, 
and in the House and Senate Committee reports.
      9. $5,000,000 from sustainable development challenge 
grants.
      The National Estuary Program has been fully funded at the 
budget request level, and the conferees direct that not more 
than $4,300,000 of this amount is available for EPA's 
intramural costs of the program. Similarly the conferees note 
that the National Environmental Education and Training 
Foundation has been funded at the statutory level.
      The conferees note the success of the cooperative lead-
based paint real estate notification program, and have been 
informed that additional resources for this program are no 
longer necessary.
      Within the amounts provided for the Clean Water Action 
Plan, $3,500,000 is intended to support groundwater and source 
water protection efforts in priority watersheds that primarily 
encompass small communities and/or rural areas. These resources 
should support source water assessment and protection 
activities at the local level, integration of groundwater 
concerns into watershed assessment and restoration plans, 
implementation of wellhead protection programs locally, and/or 
field technicians supporting communities considering new 
groundwater/source water ordinances targeted at high risk 
watersheds. The primary intent of this language is to assist 
small communities in meeting Federal drinking water standards 
and to assist those communities in contributing to the 
achievement of state water quality standards. These funds are 
to be distributed through a competitive solicitation and EPA is 
to report to the Committees on Appropriations within 60 days of 
enactment of this Act on its plans for such solicitation.
      The conferees are concerned regarding the progress that 
has been made by the Agency in dealing with the matter of 
potential security risks associated with EPA's proposal to make 
available via the Internet or other means risk management plan 
(RMP) data submitted to the Agency pursuant to Clean Air Act 
section 112(r). The conferees strongly urge that EPA continue 
to work on this issue in close consultation with the Federal 
Bureau of Investigation and other security experts so that EPA 
may implement distribution of the RMP data in a manner that 
strikes the appropriate balance between methods of public 
dissemination and legitimate national security and anti-
terrorist concerns. To that end, the conferees direct the 
Federal Bureau of Investigation to submit to Congress no later 
than December 1, 1998 a written report containing the Bureau's 
recommendations for the appropriate methods of public 
dissemination of RMP data submitted to the EPA pursuant to 
Clean Air Act section 112(r) and further direct the Agency to 
provide to the Congress monthly updates as to its progress in 
working with the FBI and other Federal agencies to develop 
appropriate RMP protocol guidelines. In this regard, the 
conferees expect the Agency to include a final proposal, 
including the use of such appropriate protocols, as part of the 
fiscal year 1999 operation plan.
      The conferees are concerned that EPA is not providing for 
adequate public participation in the proposed regional haze 
rule-making. The conferees note that the EPA has noticed a 
supplemental, but strictly limited, comment period on 
``information related'' to the proposed rule, i.e. the proposal 
submitted by the Western Governors and the recently enacted 
Inhofe Amendment to TEA-21. The conferees are concerned, 
however, that the notice precludes adequate discussion of the 
full WGA proposal and fails to provide adequate notice of how 
EPA proposes to integrate the Inhofe Amendment into the 
previously proposed rule. In addition to the procedural flaws, 
the conferees are concerned about the lack of consideration of 
issues that were inadequately addressed in the proposed rule, 
such as smoke from fires on public lands, road dust, and 
emissionsfrom foreign sources, and other significant issues 
raised by the States. EPA is therefore strongly encouraged to re-
propose the regional haze rule in its entirety for public comment so 
that the public can understand how EPA proposes to integrate these 
important issues into the rule. Finally, the conferees note with 
approval the House committee report language providing resources for 
the formation of additional visibility transport commissions to define 
reasonable progress for improving visibility in their respective Class 
I areas.
      The conferees urge EPA to (1) develop, after a period of 
public comment, a guidance document to facilitate the conduct 
of water quality and designated use reviews for CSO-receiving 
waters; (2) provide technical and financial assistance to 
states and EPA regions to conduct these reviews; and (3) submit 
a report to the relevant authorizing and appropriations 
committees of the House and Senate by December 1, 1999 on the 
progress of meeting the requirements set forth above.
      Of the funds provided for the Chesapeake Bay Program, the 
conferees direct that $200,000 shall be made available for the 
Alliance for the Chesapeake Bay to conduct a comprehensive 
evaluation of the Program, including a review of the 
institutional framework, progress in meeting watershed 
restoration commitments, and emerging issues which may affect 
present and future estuary conditions. The conferees expect the 
report to include options and recommendations for improving the 
Chesapeake Bay Program and be used as the basis for the 
development of a comprehensive plan to guide the restoration 
effort as it continues beyond the year 2000. The report and 
plan shall be completed for review and adoption by the 
Executive Council no later than the end of calendar year 2000.
      Additionally, the conferees encourage the Agency to study 
the feasibility of real time automated water quality monitoring 
within the watershed of the Chesapeake Bay at its tributaries.
      The conferees are concerned that the EPA has acted 
unilaterally to contract with a private entity for a study of 
the Salton Sea, and that this study will address matters 
related to the allocation of Colorado River waters, which is 
the exclusive responsibility of the Secretary of the Interior. 
The Administrator is directed to consult with the Salton Sea 
Authority and the Secretary of the Interior before initiating 
any action related to the Salton Sea, and the Administrator is 
prohibited from using any funds to support any work or work 
product related to the allocation of water from the Colorado 
River.
      The conferees commend the work done by the Safety, Health 
and Environmental Management Division in the Office of 
Administration for their work to develop peer-reviewed tools 
and products for use by EPA and other Federal agencies to 
improve their compliance with environmental and occupational 
health and safety requirements. Particular note is taken of the 
thorough and effective use of peer review. The Agency is urged 
to assess the feasibility of making these important compliance 
tools available to state and local governments.
      The conferees recognize the Agency's efforts in issuing a 
rule regarding the safe handling of halons. This rule, if 
properly enforced, should assure continued significant 
environmental benefits while placing only minimal burdens on 
industry. The conferees are concerned that the rule as written 
does not provide adequate guidance to the fire protection 
industry and others who handle halons as to what operating 
policies should be followed to comply with the rule.
      The conferees strongly encourage the EPA to achieve 
compliance with this rule by requiring that no persons or 
entities may dispose of halon-containing equipment except by 
sending it for halon recycling to a manufacturer, fire 
equipment dealer, or recycler operating in accordance with 
ASTM, NFPA, and/or ISO industry standards (as referenced in the 
preamble of rule 63 Fed. Reg. 11084, March 5, 1998) and that no 
persons or entities shall dispose of halon or import halon 
which is recovered but not reclaimed except by sending it for 
halon recycling to a recycler operating in accordance with the 
ASTM, NFPA, and/or ISO industry standard. Imported reclaimed 
halon must meet industry standards.
      EPA recently issued two reports to Congress addressing 
mercury emissions, including the ``Mercury Study Report to 
Congress,'' issued in December, 1997, and the ``Study of 
Hazardous Air Pollutant (HAP) Emissions from Electric Utility 
Steam Generating Units-Final Report to Congress,'' issued in 
February, 1998. In April, 1998, EPA entered into a settlement 
agreement whereby the Agency intends to make a regulatory 
determination by November 15, 1998 regarding the potential need 
for controls on utility mercury emissions. Research needs in 
this regard include unresolved issues about mercury speciation 
and the transport, fate, and effects of mercury. Moreover, 
currently there are no commercially available, cost-effective 
technologies to significantly control mercury emissions from 
utilities.
      In order to help fill research gaps, EPA is participating 
in funding: (1) the joint Federal-State Lake Superior Study on 
mercury transport; and (2) the government-wide National Health 
and Nutrition Examination Survey on fish consumption and 
mercury ingestion. In addition to these studies, EPA is 
directed to enter into a contract, within 60 days of the 
enactment of this Act, with the National Academy of Sciences 
(NAS) to perform a comprehensive review of mercury health 
research and prepare recommendations on the appropriate level 
for a mercury exposure reference dose. The conferees intend 
that the NAS complete the study and recommendations within 18 
months of entering into this contract, and complete all work 
within a budget of $1,000,000 of available EPA funds. It is the 
conferees intent that there be no further extension of time for 
completion of the NAS study beyond 18 months from the date of 
the EPA contract. Finally, it is also the conferees intent that 
EPA not issue any regulatory determination for mercury 
emissions from utilities until EPA reviews the results of the 
NAS study.

                      office of inspector general

      Appropriates $31,154,000 for Office of Inspector General, 
the same as proposed by the House and the Senate.

                        buildings and facilities

      Appropriates $56,948,000 for buildings and facilities 
instead of $60,948,000 as proposed by the House and $52,948,000 
as proposed by the Senate. The conferees have provided 
$36,000,000 for continued construction of the new consolidated 
research facility at Research Triangle Park, North Carolina. 
With this year's funding, the conferees note that some 
$236,000,000 of the $272,700,000 authorized for this project 
has been appropriated.

                     hazardous substance superfund

      Appropriates $1,500,000,000 for hazardous substance 
superfund as proposed by both the House and the Senate. The 
conferees have included bill language making available for 
obligation on October 1, 1999 an additional $650,000,000 for 
Superfund response actions, only if specific reauthorization of 
the Superfund occurs on or before August 1, 1999. The language 
requires the Congressional Budget Office to make appropriate 
scorekeeping adjustments if such reauthorization does not 
occur.
      The conferees have also included bill language which 
deletes the sunset provisions contained in sections 119 
(e)(2)(C) and 119 (g)(5) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980. The deletion 
of these two provisions will make it possible for Superfund 
cleanup contractors to obtain more easily surety bonds for new 
contracts.
      The conferees have agreed to the following fiscal year 
1999 program levels:
      $1,000,000,000 for Superfund response/cleanup actions, 
including the budget request for Brownfields.
      $155,000,000 for enforcement activities.
      $130,000,000 for management and support, including 
$12,237,000 for the Office of Inspector General.
      $40,000,000 for research and development activities, to 
be transferred to the Science and Technology account.
      $60,000,000 for the National Institute of Environmental 
Health Sciences, including $23,000,000 for worker training and 
$37,000,000 for research activities.
      $76,000,000 for the Agency for Toxic Substances and 
Disease Registry. Included within this level of funding is 
$2,000,000 for new children's health and medical monitoring 
activities, subject to a detailed spending plan to be submitted 
as part of the fiscal year 1999 operating plan. Also included 
within the funds provided herein is $4,000,000 for minority 
health professions, $2,500,000 for continuation of a health 
effects study on the consumption of Great Lakes fish, and 
$2,000,000 for continued work on the Toms River, New Jersey 
cancer evaluation and research project.
      $39,000,000 for interagency activities, including 
$29,000,000 for activities of the Department of Justice, 
$650,000 for OSHA, $1,100,000 for FEMA, $2,450,000 for NOAA, 
$4,800,000 for the Coast Guard, and $1,000,000 for the 
Department of the Interior.
      While the conferees have again this year provided the 
full budget request of $91,000,000 for the Brownfields program, 
there nevertheless remains concern that this growing program, 
though very important and worthy, is draining scarce resources 
from the equally important and worthy Superfund response 
program. In the short-term, the conferees strongly urge the 
Agency to fully review this program and make program reductions 
wherever feasible which do not adversely impact the integrity 
of the program. For the long-term, the conferees request the 
Agency to review other possible means of funding this program 
and report back to the Committees on Appropriations by April 1, 
1999 on the results of this review.
      The conferees remain concerned that EPA has begun cleanup 
activities at the Agriculture Street, New Orleans landfill 
Superfund site without including the option of using buyout 
authority. The conferees expect the Agency to continue to 
explore aggressively this option with local authorities, as 
well as other Federal agencies for a possible solution. The 
Agency is directed to report back to the Committees on 
Appropriations by January 15, 1999 on actions to address this 
problem.
      The conferees expect EPA to finalize the guidance 
document governing disbursements of funds to parties performing 
response actions at a site where a special account has been 
established. The conferees further direct that special account 
funds be appropriately disbursed to the parties consenting to 
undertake response actions at the facility to reimburse such 
response efforts. The conferees recognize that the Agency is 
entitled to a reasonable retention of special account funds for 
past and future response costs of the United States and any 
affected State.

                leaking underground storage tank program

      Appropriates $72,500,000 for leaking underground storage 
tank program instead of $70,000,000 as provided by the House 
and $75,000,000 as provided by the Senate. Bill language has 
been included which expands the use of LUST funds pursuant to 
new authorization under section 9004 (f) of the Solid Waste 
Disposal Act.
      Again this year, the conferees direct that no less than 
85 percent of the appropriated level be provided to the states 
and tribal governments.

                           oil spill response

      Appropriates $15,000,000 for oil spill response, the same 
as proposed by the House and the Senate.

                   state and tribal assistance grants

      Appropriates $3,386,750,000 for state and tribal 
assistance grants instead of $3,233,132,000 as proposed by the 
House and $3,255,000,000 as proposed by the Senate.
      Bill language provides the following program levels:
      $1,350,000,000 for Clean Water State Revolving Fund 
capitalization grants.
      $775,000,000 for Safe Drinking Water State Revolving Fund 
capitalization grants.
      $880,000,000 for state and tribal program/categorical 
grants, including $200,000,000 for section 319 non-point source 
pollution grants, $115,529,300 for section 106 water quality 
grants, and an increase above the budget request of $5,343,000 
for section 103/105 air quality grants. The conferees note that 
the Clean Water Action Plan has been fully funded at the budget 
request level.
      $50,000,000 for high priority U.S./ Mexico border 
projects. Within this amount, the conferees have provided 
$1,000,000 for the U.S./Mexico Foundation for Science. The 
amount provided for fiscal year 1999 represents a decrease of 
$25,000,000 below the fiscal year 1998 level. The conferees 
have agreed to this reduction in view of the fact that the 
recipients of border funds--principally the International 
Boundary and Water Commission, the North American Development 
Bank, and the Border Environment Cooperation Commission--have 
been slow to make project commitments. Of the $375,000,000 
appropriated to date for this program, EPA anticipates it will 
have $124,000,000 that has not been committed to a particular 
project by the end of the fiscal year.
      $30,000,000 for grants to address drinking water and 
wastewater infrastructure needs of Alaska rural and native 
villages.
      $301,750,000 for special needs drinking water, wastewater 
and groundwater infrastructure grants.
      The conferees have included bill language which reaffirms 
that funds appropriated this year, and in previous years, for 
grants for Drinking Water State Revolving Funds and other water 
infrastructure grant programs under section 1452 of the Safe 
Drinking Water Act are not to be reserved by the Administrator 
for conducting drinking water health effect studies. As in 
previous years, funding for health effects studies is provided 
under the Science and Technology account.
      Bill language has also been included which for fiscal 
year 1999 and prior years permits states to include as 
principal amounts considered to be the cost of administering 
State Revolving Fund loans to eligible borrowers.
      The conferees note that the categorical grant activity 
contains the following environmental grants, State/tribal 
program grants, and assistance and capacity buildinggrants: (1) 
nonpoint source (sec. 319 of the Federal Water Pollution Control Act); 
(2) water quality cooperative agreements (sec. 104(b)(3) of FWPCA); (3) 
public water system supervision; (4) air resource assistance to State, 
local, and tribal governments (secs. 105 and 103 of the Clean Air Act); 
(5) radon State grants; (6) water pollution control agency resource 
supplementation (sec. 106 of the FWPCA); (7) wetlands State program 
development; (8) underground injection control; (9) Pesticides Program 
implementation; (10) lead grants; (11) hazardous waste financial 
assistance; (12) pesticides enforcement grants; (13) pollution 
prevention; (14) toxic substances enforcement grants; (15) Indians 
general assistance grants; and, (16) underground storage tanks. The 
funds provided in this account, exclusive of the funds for the SRFs and 
the special water and wastewater treatment projects, may be used by the 
Agency to enter into performance partnerships with States and tribes 
rather than media-specific categorical program grants, if requested by 
the States and tribes. The performance partnership/categorical grants 
are exempt from the Congressional reprogramming limitation.
      The conferees agree that the special needs funds are 
provided as follows:
      1. $30,000,000 for Boston Harbor wastewater needs.
      2. $2,610,000 for continued wastewater needs in Bristol 
County, Massachusetts.
      3. $6,525,000 for New Orleans wastewater needs.
      4. $11,310,000 to implement combined sewer overflow 
improvements in Richmond ($5,655,000) and Lynchburg, 
($5,655,000), Virginia.
      5. $8,700,000 for continuation of the Rouge River 
National Wet Weather Demonstration project.
      6. $3,045,000 for wastewater, sewer overflow, and water 
system needs of the Westfall Municipal Sewage Authority 
($1,740,000), and Jefferson Township, Lackawanna County 
($1,305,000), Pennsylvania.
      7. $1,000,000 for the Olivenhain, California water 
infrastructure project.
      8. $870,000 for the combined sewer overflow project for 
Sacramento, California.
      9. $8,700,000 for water system improvements at Lake 
Hopatcong, New Jersey.
      10. $13,050,000 for continued planning and implementation 
of a storm water abatement system in the Doan Brook Watershed 
Area, Ohio.
      11. $7,395,000 for wastewater infrastructure needs for 
Jefferson Parish ($2,350,000); Baton Rouge ($2,000,000); and 
Grand Isle ($3,045,000), Louisiana.
      12. $8,700,000 for alternative water source development 
for the Southwest Florida, St. John's River, Northwest Florida, 
and South Florida Water Management Districts.
      13. $1,800,000 for wastewater infrastructure improvements 
for the City of Port Huron, Michigan.
      14. $2,175,000 for the Grand Rapids, Michigan combined 
sewer overflow project.
      15. $2,828,000 for water system and wastewater 
infrastructure requirements for the Somerset Township Municipal 
Authority ($1,088,000) and for the Johnstown-Cambria County 
Airport ($1,740,000), Pennsylvania.
      16. $1,305,000 for ongoing work at the Geysers Recharge 
Project in Northern California.
      17. $8,700,000 for continued clean water improvements of 
Onondaga Lake.
      18. $7,047,000 for wastewater and water system 
improvement needs for the Centerville/Cumberland Valley 
Township ($261,000); the Houtzdale Borough MunicipalAuthority 
($174,000); the Northern Blair Regional Sewer Authority ($696,000); the 
Richfield Borough Joint Municipal Authority ($348,000); Chambersburgh 
Borough ($2,175,000); the Letterkenny Reuse Authority ($522,000); the 
Lewistown Municipal Water Authority ($696,000); and the Hollidaysburg 
Borough ($2,175,000), Pennsylvania.
      19. $8,700,000 for water supply and wastewater needs for 
the City of Paintsville ($1,900,000); Pike County, Mountain 
Water District ($2,200,000); the City of Fleming Neon 
($1,500,000); the City of Salyersville ($500,000); Wolfe County 
($1,700,000); and the City of Booneville ($900,000), Kentucky.
      20. $2,610,000 for wastewater infrastructure improvements 
at Artesia, New Mexico.
      21. $4,000,000 for the St. Louis Metropolitan Sewer 
District Meramac River enhancement and wetlands protection 
project.
      22. $5,350,000 for wastewater and sewer infrastructure 
needs for DeSoto County ($2,675,000) and the City of Jackson 
($2,675,000), Mississippi.
      23. $1,740,000 for wastewater facilities and improvements 
in Essex County, Massachsetts.
      24. $3,000,000 for the Milwaukee Metropolitan Sewerage 
District interceptor system.
      25. $1,305,000 for the Miami-Dade County sanitary sewer 
overflow demonstration project.
      26. $2,610,000 for wastewater improvements at Florida 
City, Florida.
      27. $2,450,000 for the basin stormwater retention and 
reuse project at Big Haynes Creek, Georgia.
      28. $5,655,000 for the tunnel and reservoir project 
(TARP) of the Metropolitan Water Reclamation District in 
Chicago, Illinois.
      29. $5,000,000 for sewer and stormwater infrastructure 
needs at Bozeman, Montana.
      30. $4,900,000 for the Mille Lacs regional wastewater 
treatment facility, Minnesota.
      31. $1,555,000 for wastewater, sewer, and water 
infrastructure needs in Lovelock ($1,305,000) and Moapa Valley 
Water District ($250,000), Nevada.
      32. $3,750,000 for combined sewer overflow requirements 
of the Passaic Valley Sewerage Commission, New Jersey.
      33. $12,500,000 for water, wastewater, and system 
infrastructure development and improvements for the Yucaipa 
Valley Water District ($4,500,000); the Lower Owens River 
Project in Inyo County ($3,000,000); the City of Barstow 
($3,000,000); and the San Timoteo Creek environmental 
restoration project in Loma Linda ($2,000,000), California.
      34. $1,740,000 for water reuse system improvements for 
Riverton, Utah.
      35. $2,500,000 for water supply needs for Brownsville, 
Texas.
      36. $1,741,000 for drinking water infrastructure needs 
for White Oak, Wolfe Branch Utility District ($653,000), and 
for Frankfort, Potter Chapel, and the Island Ford area, 
Sunbright Utility District ($1,088,000), Tennessee.
      37. $4,350,000 for sewage treatment facilities to reduce 
nitrogen flowing into the Susquehanna River and ultimately into 
the Chesapeake Bay.
      38. $283,000 for the reservoir restoration project in 
Albemarle City, North Carolina.
      39. $1,305,000 for the water runoff and sewer treatment 
program of the San Diego Coastal Low Flow Storm Diversion 
Project.
      40. $1,435,000 for wastewater infrastructure improvements 
for Springettsbury Township/City of York ($1,000,000) and Delta 
Borough ($435,000), Pennsylvania.
      41. $2,133,000 for wastewater infrastructure improvements 
for the City of San Diego, California.
      42. $3,000,000 for water supply needs of the Lake Marion 
Regional Water Agency, South Carolina.
      43. $500,000 for a groundwater replenishment system for 
Orange County, California.
      44. $1,305,000 for the Connecticut River, Massachusetts 
and Connecticut combined sewer overflow project.
      45. $653,000 for the interceptor collection project at 
Avondale, Arizona.
      46. $870,000 for the MERTS wastewater treatment facility 
at South Tongue Point, Oregon.
      47. $1,000,000 for the Sonoma County Water Agency, 
Russian River Restoration project.
      48. $2,500,000 for completion of the export pipeline 
replacement to protect Lake Tahoe.
      49. $2,200,000 for the Charleston Water Conservancy 
District, Utah to meet sewer infrastructure needs associated 
with the 2002 Winter Olympic games.
      50. $1,000,000 for the Ogden City, Utah water and sewer 
system.
      51. $1,600,000 for the town of Mountain Village and 
Telluride, Colorado for a shared sewer system upgrade.
      52. $2,500,000 for the City of Winterset, Iowa for sewer 
system improvements.
      53. $7,000,000 for the Village of Hempstead, New York for 
water system improvements.
      54. $500,000 for the City of Hartford, South Dakota for 
the upgrade of its wastewater treatment plant.
      55. $2,000,000 for the City of Berlin, New Hampshire for 
water infrastructure improvements.
      56. $5,000,000 for the City of Cumberland, Maryland to 
separate and relocate the city's combined sewer and stormwater 
system.
      57. $4,750,000 for improvements to the St. Maries, Idaho 
drinking water system.
      58. $1,200,000 for the village of Jemez Springs, New 
Mexico to improve its wastewater treatment system.
      59. $3,500,000 for the City of Springfield, Vermont to 
upgrade its wastewater system.
      60. $4,900,000 for the City of Grand Forks, North Dakota 
water treatment plant relocation project.
      61. $5,600,000 for the Eastern Band of Cherokee Indians, 
North Carolina, Big Cove Community wastewater collection 
project.
      62. $8,000,000 for Jackson County, Mississippi for 
remaining construction of pipeline and water treatment 
improvements.
      63. $2,000,000 for Anderson County, Kentucky to renovate 
the Alton Water District's sewer system.
      64. $1,550,000 for the City of Kinston, North Carolina 
wastewater treatment improvements.
      65. $350,000 for the Green River Water District, Hart 
County, Kentucky, for water system improvements.
      66. $1,200,000 for the Matanuska-Susitna Borough, Alaska 
water and sewer improvements.
      67. $1,700,000 for the City of Anchorage for water system 
improvements involving the town of Girdwood, Alaska.
      68. $1,000,000 for the City of Fairbanks, Alaska for 
water system improvements.
      69. $1,000,000 for the Middleburg/Franklin Township, 
Pennsylvania wastewater improvement project.
      70. $2,250,000 for the City of Sparks, Nevada to 
construct a water treatment facility including nitrogen 
removal.
      71. $3,000,000 for Geneva County, Alabama drinking water 
system improvements.
      72. $1,000,000 for the Goodwater Utilities Board, Alabama 
to connect the town of Goodwater with Alexander City.
      73. $4,000,000 for the Kansas City Blue River wastewater 
treatment plant improvements.
      74. $1,000,000 for Somerset County, Maryland wastewater 
treatment improvements in support of biological nutrient 
removal.
      75. $2,500,000 for the three rivers wet weather 
demonstration project, Allegheny County, Pennsylvania, to 
eliminate separate sewer flows.
      76. $1,000,000 to support Springfield, Missouri efforts 
for phosphorus removal at the Southwest Wastewater Treatment 
Plant.
      77. $10,000,000 for a National Community Decentralized 
Wastewater Demonstration Project. The conferees expect this 
project will help ``jump start'' the process of technology 
transfer of various decentralized wastewater treatment options. 
Three geographically and geologically diverse sites have been 
determined for this project, and include Warren, Vermont 
($1,500,000), Block Island/Green Hill Pond, Rhode Island 
($3,000,000), and LaPine, Deschutes County, Oregon 
($5,500,000). Each of these communities has already expended 
considerable resources in the development of these projects, 
and it is the conferees intention that such previous 
expenditures be counted toward a local cost share for these 
projects only of 25 percent.
      78. $1,000,000 for the City of Arnold, Pennsylvania for 
sewer system infrastructure improvements.
      79. $250,000 for the City of McCall, Idaho for water 
infrastructure improvements, including filtration needs.
      80. $1,000,000 for wastewater treatment system 
improvements in the Lake Tomahawk Sanitary District, Wisconsin.

                          working capital fund

       The conferees have included bill language which makes 
technical changes to the Agency's Working Capital Fund.

                        administrative provision

       The conferees have included new language, in lieu of 
language proposed by the Senate, which limits the use of 
appropriated funds to issue or to establish an interpretation 
or guidance relating to fats, oils, and greases which does not 
recognize and provide for the differences of environmental 
effects and physical, chemical, biological, and other 
characteristics of edible and non-edible fats, oils, and 
greases as defined in the Edible Oil Regulatory Reform Act, 
Public Law 104-55. The language further requires the 
Administrator to issue regulations amending 40 C.F.R. 112 to 
comply with the requirements of Public Law 104-55 not later 
than March 31, 1999.
       The conferees have not included bill language proposed 
by the Senate regarding a limitation on the use of funds to 
enable the export of government-owned ships for dismantling.

                   Executive Office of the President

                Office of Science and Technology Policy

      The conferees are in receipt of a report on Nuclear 
Magnetic Resonance (NMR) technology which focuses on new 
research opportunities. The report was developed by a committee 
of renowned NMR spectroscopists, assembled at the suggestion of 
the National Science Foundation. This recently released report 
calls for interagency collaboration to expand utilization of 
NMR. The conferees encourage the Science Advisor to review this 
report and, if appropriate, assist in developing an interagency 
solution for this important opportunity.

  COUNCIL ON ENVIRONMENTAL QUALITY AND OFFICE OF ENVIRONMENTAL QUALITY

      Appropriates $2,675,000 for the Council on Environmental 
Quality and Office of Environmental Quality as proposed by the 
House instead of $2,575,000 as proposed by the Senate. The 
conferees direct that no less than $100,000 of the appropriated 
amount be used by CEQ for work on the NEPA Reinvention project. 
The conferees expect that, among other Reinvention activities, 
CEQ will use these funds to support efforts to establish a 
memorandum of understanding between the Federal Energy 
Regulatory Commission and other appropriate Federal departments 
and agencies to expedite review of natural gas pipeline 
projects.
      Again this year, bill language has been included which 
stipulates that for fiscal year 1999 there will be just one 
member of the Council on Environmental Quality and that 
individual will serve as chairman. Language is also included 
again this year which prohibits CEQ from using funds other than 
those appropriated directly to CEQ under this heading. The 
conferees expect CEQ to implement this provision in a manner 
consistent with its implementation during fiscal year 1998.

                  Federal Emergency Management Agency

                            disaster relief

      Appropriates $307,745,000 for disaster relief as proposed 
by the House instead of $846,000,000 as proposed by the Senate.
      The conferees have agreed to include language in the bill 
making available $40,000,000 from section 404 hazard mitigation 
grant funding available to the State of California for pilot 
projects to demonstrate seismic retrofit technology. Of this 
amount, FEMA is directed to use $5,000,000 in fiscal year 1999 
to conduct a pilot project of seismic retrofit technology on an 
existing welded steel frame building at California State 
University, San Bernardino. FEMA is directed to report to the 
Committees on Appropriations of the House and Senate, on or 
before March 31, 1999, and again on or before June 30, 1999, 
regarding progress made toward completion of this retrofit and 
development of an essential data base. The conferees recommend 
that FEMA establish a steering committee to receive input from 
industry associations and the technical community regarding the 
appropriate use of updated building codes and industry 
standards in performing this type of retrofit.

                         Salaries and Expenses

      Appropriates $171,138,000 for salaries and expenses as 
proposed by the House instead of $170,000,000 as proposed by 
the Senate.
      While the conferees are unable to provide additional 
funds for salaries and expenses above the original budget 
request, the conferees strongly support adequate funding for 
consequence management planning activities associated with 
preparing for a terrorist incident involving chemical and/or 
biological weapons, and urge FEMA to make necessary resources 
available for such activities.
      The conferees direct FEMA to provide $400,000 and 
necessary workyears, in addition to funds requested in the 
budget, to administer the dam safety program as authorized by 
section 12(e) of the National Dam Safety Program Act.
      The conferees understand that there may be a need for a 
new headquarters facility for FEMA which meets its special 
needs. The Agency should review this matter and, if 
appropriate, develop a workable plan to address this 
requirement.

                      Office of Inspector General

      Appropriates $5,400,000 for the Office of Inspector 
General as proposed by the Senate instead of $4,930,000 as 
proposed by the House.

              Emergency Management Planning and Assistance

      Appropriates $240,824,000 for emergency management 
planning and assistance instead of $231,674,000 as proposed by 
the House and $239,000,000 as proposed by the Senate.
      The conferees agree to provide $25,000,000 for the 
Project Impact program; $11,000,000 to address the requirements 
outlined in the July 9, 1998 budget amendment for anti-
terrorism; $3,500,000 for an emergency operations center in 
Monroe County, Pennsylvania; $1,000,000 for a pilot program to 
demonstrate two-foot contour mapping by the Louisiana Oil Spill 
Coordinator's Office; $1,600,000 for development of an 
emergency communications system for Pointe Coupe Parish, 
Louisiana; and $400,000 for a University of Missouri-Columbia 
Fire and Rescue Training Institute pilot program for hazards 
materials response training.
      The conferees have included language in the bill which 
modifies the House language with regard to a smoke detector 
pilot project. The conferees agree that $750,000 is to be 
provided to the U.S. Fire Administration to conduct a 
nationwide pilot project to distribute smoke detectors in the 
20 statistical areas at highest risk for residential fires. The 
program should also include an educational component designed 
to encourage the proper installation and maintenance of smoke 
detectors. The conferees note thatprevious smoke detector 
distribution and education programs have been successful by enlisting 
the support and cooperation of various state and local departments or 
organizations, and the Fire Administrator is encouraged to pursue such 
cooperation. The U.S. Fire Administration shall transmit the results of 
its pilot project to the Congress and the Consumer Product Safety 
Commission upon completion of the project.
      In addition, the conferees agree to provide a total of 
$3,500,000 for the Dam Safety Program which is $2,000,000 above 
the budget request; and an increase of $5,500,000 for State and 
Local Assistance grants. The conferees expect state and local 
authorities to plan for a 50-50 cost share starting with fiscal 
year 2000. Finally, the conferees have included $824,000 for 
MERS equipment and direct FEMA to provide a report to the 
Committees on Appropriations which outlines the total 
requirements for the MERS program.

                     National Flood Insurance Fund

      The conferees have included bill language which 
authorizes the National Flood Insurance Program for fiscal year 
1999. Without this authorization, new flood insurance policies 
could not be written throughout the fiscal year.

                    General Services Administration

                      Consumer Information Center

      Appropriates $2,619,000 for the Consumer Information 
Center as proposed by the House instead of $2,419,000 as 
proposed by the Senate.

             National Aeronautics and Space Administration

      Appropriates a total of $13,665,000,000 for National 
Aeronautics and Space Administration instead of $13,328,200,000 
as proposed by the House and $13,615,000,000 as proposed by the 
Senate.
       The conferees have included bill language in section 434 
renaming NASA's Lewis Research Center in Cleveland, Ohio the 
John H. Glenn Research Center at Lewis Field, in honor of 
retiring U.S. Senator John H. Glenn. The conferees are taking 
this action in recognition of Senator Glenn's significant 
contributions and achievements in the field of space 
exploration and research.
      The conferees agree to retain the current NASA account 
structure for fiscal year 1999, but have included provisions 
which will restrict the use of non-space station funds for 
space station related activities. The conferees direct NASA to 
provide as part of its fiscal year 2000 budget submission a 
separate account for the international space station. The 
conferees have taken this action because of concern that the 
current account structure may facilitate the easy movement of 
funding from other human space flight activities into the space 
station program without timely or adequate notification to the 
Congress.
      The conferees agree to remove language included in the 
House bill which prohibits the use of fiscal year 1999 funds 
for initiation of the Triana mission to be positioned at the 
Earth-Sun LaGrange-1 point. The conferees understand that NASA 
has selected a peer reviewed mission concept with enhanced 
science, which may also incorporate commercial involvement. The 
conferees understand that the enhanced mission estimate is 
$75,000,000, with a Shuttle launch by December 2000, and expect 
that NASA will outline a funding plan for initiation of Triana 
in the operating plan.
      The conferees agree to include a general provision which 
provides indemnification and cross-waivers of liability with 
regard to the X-33 and X-34 programs. The language included in 
the conference agreement is the Senate bill language with some 
technical changes.
      Of the amounts approved in the following appropriations 
accounts, NASA must limit transfers of funds between programs 
and activities to not more than $500,000 without prior approval 
of the Committees on Appropriations. Further, no changes may be 
made to any account or program element if it is construed to be 
policy or a change in policy. Any activity or program cited in 
this report shall be construed as the position of the conferees 
and should not be subject to reductions or reprogramming 
without prior approval of the Committees on Appropriations of 
the House and Senate. Finally, it is the intent of the 
conferees that all carryover funds in the various 
appropriations accounts be subject to the normal reprogramming 
requirements outlined above.
      In determining the base from which to apply the general 
reductions for NASA, the Agency shall first deduct from the 
total the items of Congressional interest specifically listed 
in the conference report and statement of the managers for the 
fiscal year 1999 VA-HUD and Independent Agencies Appropriations 
Act, and in the House and Senate Committee reports.

                           HUMAN SPACE FLIGHT

      Appropriates $5,480,000,000 for human space flight. The 
House had proposed $5,309,000,000 in this account. The Senate 
had proposed two new accounts, International Space Station and 
Launch Vehicles and Payload Operations, with a total of 
$5,541,000,000. Within the amount provided, the appropriation 
for space shuttle is $3,028,000,000, the appropriation for 
payload and utilization is $182,000,000, and the appropriation 
for space station development related activities is 
$2,270,000,000.
      The amount provided for space shuttle operations is 
$31,000,000 below the budget request. These funds have been 
transferred to the mission support account to cover emergent 
requirements in the areas of personnel compensation and travel. 
In addition, the conferees direct NASA to provide $3,000,000 
for the U.S. Space and Rocket Center in Huntsville, Alabama.
      The amount provided for the international space station 
program is $2,270,000,000, the same as the budget request. The 
first two elements of the station are essentially ready for 
launch in November and December of 1998. The critical third 
element, the Russian-provided service module, still requires 
some assembly and has been scheduled for launch in April of 
1999. Currently the launch date of the service module is in a 
state of flux and further delay will most likely occur. The 
conferees are very concerned about the status of the space 
station development schedule and in particular the impact of 
the economic and political situation in Russia. Because of this 
concern, the conferees will not endorse fiscal year 1999 
transfer payments to the Russian Government at this time. The 
conferees have included a general provision which directs NASA 
to explore avenues other than government to government transfer 
payments to ensure adequate funding finds its way to the 
enterprises which are providing services and equipment for the 
space station program. The conferees will not approve any 
movement of funds to compensate for Russian nonperformance 
until a report is provided to the Committees on Appropriations 
of the House and Senate detailing the reasons for accepting or 
rejecting alternative financial arrangements, including 
government to government transfers, U.S. government to foreign 
contractor arrangements, and U.S. contractor to foreign 
contractor arrangements. The conferees expect to receive the 
report within 60 days of enactment of this Act.

                  SCIENCE, AERONAUTICS AND TECHNOLOGY

      Appropriates $5,653,900,000 for science, aeronautics and 
technology. The House had proposed $5,541,600,000 in this 
account. The Senate had proposed two new accounts, science and 
technology, and aeronautics, space transportation, and 
technology, with a total of $5,562,400,000. The amount provided 
is $196,500,000 above the budget request for science, 
aeronautics and technology. The amount provided consists of:
      $2,119,200,000 for space science, an increase of 
$60,800,000 to the budget request.
      $263,500,000 for life and microgravity sciences, an 
increase of $21,500,000 to the budget request.
      $1,413,800,000 for earth sciences, an increase of 
$41,800,000 to the budget request.
      $1,338,900,000 for aeronautics and space transportation, 
an increase of $33,900,000 to the budget request.
      $380,000,000 for mission support, no change from the 
budget request.
      $138,500,000 for academic programs, an increase of 
$38,500,000 to the budget request.
      Specific program adjustments are outlined below.

                             Space Science

      The conferees agree to the following changes to the 
budget request:
      1. A general reduction of $21,200,000.
      2. An increase of $20,000,000 for the Mars 2001 program.
      3. An increase of $10,500,000 for Cross Enterprise 
Advance Technology Development.
      4. An increase of $12,000,000 for Next Generation Space 
Telescope.
      5. An increase of $11,000,000 for Sun-Earth connecting 
advanced technology development to provide full funding for 
Solar-B, continue microsatellite technology, and support launch 
of solar stereo by 2002.
      6. An increase of $1,000,000 for an astronomical 
satellite telescope operated at Western Kentucky University.
      7. An increase of $10,000,000 for Space Solar Power.
      8. An increase of $1,000,000 for the Near Earth Asteroid 
Tracking program.
      9. An increase of $2,000,000 for a Science Center at 
Glendale Community College.
      10. An increase of $2,500,000 for the Bishop Museum/Mauna 
Kea Astronomy Education Center.
      11. An increase of $2,000,000 for the Chabot Observatory 
and Science Center, Oakland, CA.
      12. An increase of $2,000,000 for a center on life in 
extreme thermal environments at Montana State University in 
Bozeman.
      13. An increase of $2,000,000 for Montana State 
University in Bozeman to carry out research into advanced 
hardware and software technologies for development of advanced 
optoelectronic materials.
      14. An increase of $2,000,000 for an atmospheric research 
small expendable deployed phase-B study.
      15. An increase of $4,000,000 for the University of 
Alabama in Huntsville on behalf of the Center for Space Science 
and Technology Alliance to establish the National Center for 
Space Science and Technology adjacent to existing optics and 
material university research laboratories in Huntsville, 
Alabama.

                     life and microgravity sciences

      The conferees agree to the following changes to the 
budget request:
      1. An increase of $15,000,000 for a shuttle mission which 
accommodates research payloads. The conferees, remain concerned 
about the lack of shuttle-based science missions in fiscal year 
1999. Additional research missions during space station 
assembly are critical for providing scientists the opportunity 
to develop research capabilities needed for optimal utilization 
of the International Space Station. Therefore, the conferees 
have provided $15,000,000 for such a mission. NASA is directed 
to submit, as part of its operating plan, a schedule for 
accomplishing this mission in fiscal year 1999.
      2. An increase of $6,500,000 for space radiation 
research.

                             earth sciences

      The conferees agree to the following changes to the 
budget request.
      1. A general reduction of $11,200,000.
      2. An increase of $25,000,000 to support EOS AM-1 launch 
requirement, including interoperability of the EOS ground 
systems.
      3. An increase of $10,000,000 for a remote sensing 
project at Mississippi State University.
      4. An increase of $3,500,000 for the NASA International 
Earth Observing System Natural Resource Training Center at the 
University of Montana, Missoula.
      5. An increase of $2,000,000 for Environmental Computer 
Center at Oregon State University.
      6. An increase of $2,000,000 for an institute for 
research in commercial remote sensing applications at the 
University of Missouri-Columbia.
      7. An increase of $1,000,000 for the Pipelines project at 
Iowa State University/Southern University-Baton Rouge.
      8. An increase of $1,000,000 for the consortium for the 
application of space data to education (CASDE).
      9. An increase of $5,500,000 for biodiversity-related 
science programs at the American Museum of Natural History.
      10. An increase of $3,000,000 for the Regional 
Application Center in Cayuga County, New York.

                  aeronautics and space transportation

      The conferees agree to the following changes to the 
budget request.
      1. A general reduction of $13,850,000.
      2. An increase of $6,000,000 for studies of liquid 
flyback booster systems.
      3. An increase of $4,000,000 for studies of a fifth stage 
solid rocket booster system.
      4. An increase of $20,000,000 for NASA participation in 
the Air Force Military Space Plane project.
      5. An increase of $6,000,000 for hybrid propulsion 
testing.
      6. An increase of $5,000,000 for the six NASA Regional 
Technology Transfer Centers for programs to link women and 
minority owned businesses and businesses from distressed 
communities.
      7. An increase of $2,000,000 for the Midwest Technology 
Transfer Center for the Garrett Morgan initiative throughout 
Ohio and the Great Lakes region.
      8. An increase of $1,500,000 for MSE-Technology 
Applications, Western Environmental Technology Office.
      9. An increase of $3,000,000 for a small business 
incubator program for two new incubators, at least one of which 
is to be located in Florida.
      10. An increase of $250,000 for the Institute for 
Software Research (ISR) in Fairmont, West Virginia which will 
support a collaborative research effort between ISR and NASA 
Dryden to ensure cost effectiveness and safety for NASA 
programs through basic research.

                         mission communications

      The conferees have provided $380,000,000 for Mission 
Communications, the same as the budget request and the Senate 
level and a reduction of $5,000,000 from the House proposed 
funding level.

                           academic programs

       The conferees have agreed to the following changes to 
the budget request.
      1. An increase of $5,600,000 for the National Space Grant 
College and Fellowship Program.
      2. An increase of $5,400,000 for the NASA EPSCoR program. 
The increase results in a total funding level of $9,600,000 in 
fiscal year 1999. The conferees expect the program to be 
operated out of NASA headquarters and to permit each awardee to 
pursue research in any or all of the four NASA strategic 
enterprises. Finally, the conferees expect NASA to report to 
the Committees on Appropriations by March 1, 1999 on how it 
intends to aggressively expand future appropriations for this 
program so as to help diversify the university base which NASA 
research activities support.
      3. An increase of $3,500,000 for academic and 
infrastructure needs at the University of Redlands.
      4. An increase of $1,000,000 for a residential aerospace 
education center at NASA Glenn Research Center.
      5. An increase of $2,000,000 for a center for advanced 
information technology at the University of Maryland, College 
Park.
      6. An increase of $11,600,000 for Historically Black 
Colleges and Universities. Of this amount, $10,000,000 is to be 
applied to the SEMMA program as specified in House Report 105-
610, and $1,600,000 is for a grant to Morgan State University 
for capital renovations and environmental remediation at the 
University's multipurpose facility to facilitate its effective 
use for the conduct of math and science education workshops to 
at-risk students in middle and high school.
      7. An increase of $9,400,000 for the Partnership Awards 
program.

                            MISSION SUPPORT

      Appropriates $2,511,100,000 for mission support instead 
of $2,458,600,000 as proposed by the House and $2,491,600,000 
as proposed by the Senate. The amount provided includes 
$2,000,000 for settlement of claims associated with the 
Integrated Test Facility at the Dryden Flight Research Center, 
and $1,500,000 for completion of facilities at the Stennis 
Space Center. The amount provided also includes an increase of 
$31,000,000, derived from the human space flight account, to 
cover emergent requirements related to lower than anticipated 
personnel retirements/buyouts, increased costs associated with 
retirement system changes, government-wide pay rate changes, 
and higher requirements for travel funding. The conferees 
hereby increase NASA's travel limitation by $1,400,000.
      The conferees continue to believe that the Administrator 
should work closely with the City of Downey, California 
regarding the disposition and excessing of Parcels 1 and 2 of 
the NASA Industrial Plant, Downey, to the City. It is the 
agreement of the conferees that this property be conveyed tothe 
City for economic/industrial development in an expeditious manner. The 
conferees direct the Administrator to submit a report by February 1, 
1999, outlining a plan for transfer of Parcels 1 and 2 to the City of 
Downey. The report should identify any potential obstacles to timely 
transfer, including environmental considerations, proposals for 
overcoming those obstacles, and a timetable by which orderly transfer 
could be effected.
      The conferees continue to prohibit the use of funds 
appropriated or otherwise made available to the National 
Aeronautics and Space Administration by this Act, or any other 
Act enacted before the date of enactment of this Act, by the 
Administrator of NASA to relocate aircraft of the National 
Aeronautics and Space Administration based east of the 
Mississippi River to the Dryden Flight Research Center in 
California.

                      OFFICE OF INSPECTOR GENERAL

      Appropriates $20,000,000 for the Office of Inspector 
General as proposed by the Senate, instead of $19,000,000 as 
proposed by the House.

                  National Credit Union Administration

                       CENTRAL LIQUIDITY FACILITY

      Appropriates $2,000,000 for the National Credit Union 
Administration for the Community Development Revolving Loan 
Program for credit unions as authorized by Public Law 103-325, 
as proposed by the House instead of $1,000,000 as proposed by 
the Senate.

                      National Science Foundation

                    RESEARCH AND RELATED ACTIVITIES

      Appropriates $2,770,000,000 for research and related 
activities instead of $2,815,000,000 as proposed by the House 
and $2,725,000,000 as proposed by the Senate. Bill language is 
included which provides a limitation of $257,460,000 for Polar 
research and operations support. The conferees have also 
included bill language which prohibits the expenditure of funds 
after September 30, 1998 for activities associated with the 
administration of the Internet.
      Specific bill language which provided $50,000,000 for a 
comprehensive research initiative on plant genomes for 
economically significant crops as proposed by the Senate has 
not been included, however, the conferees have included 
$50,000,000 for such an initiative within the overall research 
program funded through this account. This amount represents an 
increase of $10,000,000 above the budget request.
      The conferees note that the amount provided the research 
and related activities account represents an increase of nearly 
$225,000,000, or eight percent, over the comparable fiscal year 
1998 level. The Foundation is expected to spread this increase 
across all research directorates in a proportional manner 
consistent with the budget proposal. Within this framework, the 
Foundation is expected to make every effort to maximize 
resources for the Ocean, Earth and Atmospheric Sciences 
programs. The conferees also note that the GLOBE program has 
been provided up to $2,000,000.
      For the U.S. Arctic Research Program, the conferees have 
provided up to $22,000,000, an increase of up to $12,500,000 
above the budget request. These additionalfunds are intended to 
support ongoing and planned high priority research in the Arctic 
region, including appropriate logistic needs. Prior to the obligation 
of these additional resources, the conferees expect the Foundation to 
provide a detailed spending plan on the use of these funds. Such plan 
should be submitted as part of the fiscal year 1999 operating plan.
      The conferees have not included provisions as contained 
in the Senate report which created three new research centers 
for applied molecular biology and which provided funds to 
establish three new centers under the KDI program. The 
conferees believe that support for doctoral I and doctoral II 
institutions (as classified by the Carnegie Foundation) is 
critical if the nation is to fully develop its human resources 
with respect to science and engineering research. The conferees 
recognize that NSF support for these institutions currently 
exceeds $150,000,000 or about eight percent of the total NSF 
research budget. Nevertheless, the conferees expect the NSF to 
take all appropriate steps to enhance the resources available 
for doctoral I and II institutions, including taking steps to 
ensure that all directorates below the NSF-wide average 
increase grants for these institutions to achieve no less than 
this eight percent level. Moreover, the conferees direct the 
Foundation to review the need for the establishment of new 
centers to meet the purposes as proposed by the Senate, and 
review the desirability and feasibility of establishing a new 
and separate pool of resources to benefit doctoral I and II 
institutions. The conferees expect these reviews to be 
completed and submitted to the Committees on Appropriations no 
later than April 1, 1999.
      The conferees believe that the ``Grand Challenges'' 
identified in the National Research Council's recent report, 
``Opportunities in Ocean Science,'' contains valuable 
perspectives on the benefit derived by broad coordinated 
research investigations. The NSF director shall communicate the 
findings of the report, and counsel with The National Ocean 
Leadership Council and the Office of Management and Budget, to 
define ocean science initiatives that will help realize the 
economic and environmental benefits described in the report.
      Within amounts provided in this account, $1,500,000 is 
for continued operation of the RaDiUs database program. The 
conferees note that this database may represent a useful tool 
in the analysis of all research and development expenditures 
throughout the Federal government, and request the Foundation 
to report by May 1, 1999 on its assessment of the value and 
usefulness of this program. The amount provided is in addition 
to other amounts provided to the Foundation for CTI services.

                        major research equipment

      Appropriates $90,000,000 for major research equipment as 
proposed by the House instead of $94,000,000 as proposed by the 
Senate. Included within this amount is $9,000,000 for the 
Millimeter Array, $22,000,000 for the Large Hadron Collider, 
$20,000,000 for Polar support aircraft upgrades, and 
$39,000,000 for continued maintenance and construction of new 
facilities in Antarctica.

                     education and human resources

      Appropriates $662,000,000 for education and human 
resources instead of $642,500,000 as proposed by the House and 
$683,000,000 as proposed by the Senate.
      The conferees have included bill language renaming the 
Alliances for Minority Participation (AMP) Program after 
retiring Congressman Louis Stokes. The purpose of the AMP 
Program is to build partnerships among different kinds of 
institutions of higher education for the express purpose of 
attracting and retaining minority students in academic programs 
that lead to degrees in science and engineering. Congressman 
Stokes has been equally committed to building partnerships and 
alliances throughout his distinguished career. It is therefore 
fitting that this program which embodies these important 
principles be redesignated the Louis Stokes Alliances for 
Minority Participation Program.
      Within the amount provided, $46,000,000 is for the 
Informal Education Program, and an increase of $10,000,000 
above the budget request is provided for the EPSCoR program.
      The conferees have provided $13,500,000 through the 
education and human resources account for education reform 
initiatives targeted to underrepresented populations served 
through the nation's historically black colleges and 
universities (HBCUs). Of these amounts, $7,500,000 shall be 
allocated for graduate level activities, and $6,000,000 for 
undergraduate activities under the UPUR program established in 
House Report 105-297. The undergraduate funds are to be 
augmented with an additional $2,000,000 from the research and 
related activities account for a total UPUR program level for 
fiscal year 1999 of $8,000,000.
      For fiscal year 1998, $6,000,000 was provided for this 
program by the NSF instead of $12,000,000 as intended by the 
conferees. As a result, fewer institutions were given the 
opportunity to compete for available resources. It is the 
intent of the conferees that all eligible institutions, 
including those which were granted awards in fiscal year 1998, 
be given equal opportunity to compete for funds provided for 
fiscal year 1999. It is also the intent of the conferees that 
awards be of sufficient size so as to meet the needs of the 
competing institutions. However, it is not the intent of the 
conferees that NSF establish either a minimum or a maximum 
award size in the determination of grant recipients. Rather, 
each application should be judged on its merits without regard 
to its proposed cost. Finally, the Foundation is urged to 
indicate in its fiscal year 2000 budget submission how it 
intends to sustain the UPUR initiative at appropriate funding 
levels.

                         salaries and expenses

      Appropriates $144,000,000 for salaries and expenses as 
proposed by the House instead of $136,950,000 as proposed by 
the Senate.

                      office of inspector general

      Appropriates $5,200,000 for the Office of Inspector 
General as proposed by the House and the Senate.

                 Neighborhood Reinvestment Corporation

          payment to the neighborhood reinvestment corporation

      Appropriates $90,000,000 for the Neighborhood 
Reinvestment Corporation as proposed by the House instead of 
$60,000,000 as proposed by the Senate. Language is included 
which provides $25,000,000 for a pilot homeownership 
initiative, as proposed by the House.

                        Selective Service System

                         salaries and expenses

      Appropriates $24,176,000 for salaries and expenses as 
proposed by the House, instead of $24,940,000 as proposed by 
the Senate.

                      TITLE IV--GENERAL PROVISIONS

      Restores language proposed by the House and stricken by 
the Senate permitting EPA, NSF, and NASA funds to be used for 
an endowment for the United States/Mexico Foundation for 
Science, amended to make technical modifications to the 
language.
      Retains language proposed by the Senate limiting the use 
of funds appropriated to the Department of the Housing and 
Urban Development.
      Deletes language proposed by the House and stricken by 
the Senate establishing new loan limits for Federal Housing 
Administration mortgages, providing additional appropriations 
of $10,000,000 for VA's medical and prosthetic research account 
and $70,000,000 for the National Science Foundation's research 
and related activities account, and defining the term ``area.'' 
The Senate proposed language establishing new loan limits for 
Federal Housing Administration mortgages under HUD's 
administrative provisions. New FHA loan limits and revised 
definitions are addressed under HUD's administrative provisions 
section, and the appropriations for the VA and NSF accounts are 
addressed under those appropriating paragraphs.
      Inserts and modifies language proposed by the House, 
directing the Consumer Product Safety Commission to contract 
with the National Academy of Sciences for a study of flame 
retardant chemicals under consideration for use in upholstered 
furniture. The study is to be completed prior to promulgation 
of a notice of proposed rulemaking or final rulemaking.
      Deletes language proposed by the House and stricken by 
the Senate reducing the amount of medical care funds with 
delayed availability. The total amount of funds with delayed 
availability is addressed under the medical care account.
      Deletes language proposed by the House and stricken by 
the Senate regarding child sleepwear flammability standards, 
and inserts new language directing the Consumer Product Safety 
Commission to address sleepwear standards.
      Deletes language proposed by the House and stricken by 
the Senate reducing funds for non-overhead administrative 
expenses of the Federal Housing Administration by a total of 
$303,999,998 and increasing funds for VA's medical care account 
by the same amount. All funds for these activities are 
addressed under the FHA and VA's medical care accounts.
      Deletes language proposed by the House and stricken by 
the Senate prohibiting the use of FEMA funds to permit the use 
of seismic hazard mitigation program funds to relocate a 
hospital.
      Restores language proposed by the House and stricken by 
the Senate prohibiting the use of funds in this Act for 
research on reducing methane emissions from livestock.
      Restores language proposed by the House and stricken by 
the Senate prohibiting funds in this Act from being used to 
carry out Executive Order 13083 concerning federalism.
      Deletes language proposed by the House and stricken by 
the Senate reducing funds for HUD's housing opportunities for 
persons with AIDS (HOPWA) account by $21,000,000 and increasing 
funds for VA's grants for construction of state extended care 
facilities account by the same amount. Funding for these 
activities is addressed under HUD's HOPWA and VA's grants for 
construction of state extended care facilities accounts.
      Deletes language proposed by the House and stricken by 
the Senate restricting the use of funds in this Act for 
implementation of section 12B.2(b) of the Administrative Code 
of San Francisco.
      Deletes language proposed by the Senate placing certain 
conditions on entities that receive grants providing emergency 
shelter for homeless individuals.
      Inserts language proposed by the Senate modifying the 
National Fallen Firefighters Foundation Act to eliminate the 
cap on staffing, amended to make technical changes.
      Inserts language proposed by the Senate prohibiting 
individuals convicted of methamphetamine manufacture from 
receiving public housing assistance.
      Deletes language proposed by the Senate regarding maximum 
travel distance for veterans to health care facilities.
      Deletes language proposed by the Senate regarding 
detailed justifications for salary and expenses activities of 
the agencies in the bill. While the committee of conference has 
deleted the bill language, it remains concerned with the lack 
of detail contained in the budget justifications submitted by 
some of the agencies in the bill. As such, all of the 
departments and agencies are directed to provide detailed 
justifications for all salary and expenses activities, 
including personnel compensation and benefits, consulting 
costs, professional services or technical service contracts 
regardless of the dollar amount, contracting out costs, travel 
and other standard object classifications for all headquarters 
offices, regional offices, or field installations and 
laboratories, including the number of full-time equivalents per 
office, and the personnel compensation, benefitsand travel cost 
for each Secretary, Assistant Secretary, Administrator, or other major 
operating office.
      Inserts language proposed by the Senate allowing the 
Office of Science and Technology Policy to contract with the 
National Academy of Sciences for a study to develop methods for 
evaluating federally funded research and development programs.
      Inserts language proposed by the Senate which provides 
indemnification and cross-waivers of liability with regard to 
the X-33 and X-34 flight test programs.
      Inserts language proposed by the Senate providing land 
allotments to Alaska native Vietnam-era veterans, amended to 
reduce the eligibility period to three years, decrease the 
amount of lands subject to allotment, and provide the Secretary 
of the Interior with discretion regarding which lands are 
subject to allotment, among other changes.
      Inserts new language directing the National Aeronautics 
and Space Administration to report on alternative methods of 
contracting with Russian entities.
      Inserts new language renaming NASA's Lewis Research 
Center in Cleveland, Ohio the John H. Glenn Research Center at 
Lewis Field, in honor of retiring U.S. Senator John H. Glenn.
      Inserts new language waiving the statutory waiting period 
prior to adoption of new accounting standards for NASA.

              TITLE VI--SINGLE FAMILY PROPERTY DISPOSITION

      Inserts language providing HUD with additional 
flexibility to choose the most cost-effective methods of paying 
insurance claims and disposing of acquired notes or homes under 
FHA single family programs. Specifically, the provision:
            (1) reorganizes the current section 204(a) of the 
        National Housing Act and eliminates obsolete or 
        redundant provisions;
            (2) provides a new claims payment procedure that 
        permits HUD to pay a claim upon assignment of the 
        mortgage rather than upon conveyance of the property;
            (3) authorizes HUD to take assignment of the notes 
        and transfer them to private parties for servicing, 
        foreclosure avoidance, foreclosure, property 
        management, and asset disposition; and,
            (4) provides HUD with authority, similar to the FHA 
        multifamily disposition program, that allows FHA to be 
        an equity participant in private entities.
      Additionally, the provision allows a structured financing 
for asset disposition in which FHA retains an equity interest, 
thereby increasing the value of the asset over simple asset 
sales. It eliminates the precise statutory formula for 
determining insurance benefits due a mortgagee by allowing HUD 
to adjust the additions and deductions prospectively through 
administrative action, to reflect new information, changing 
conditions, and state law requirements.
      The conferees wish to impress upon HUD the importance of 
an aggressive and effective loss mitigation program. Such a 
program could keep families in their homes longer and would, 
most certainly, decrease losses to the FHA insurance fund. 
Currently, HUD's mortgage servicers have no affirmative duty to 
undertake loss mitigation activities. Therefore, the conference 
agreement has included language requiring loss mitigation 
activities upon default of a mortgage. Failure by a mortgagee 
to engage in loss mitigation activities could result in a 
penalty of three times the amount of any insurance benefits 
claimed by the mortgagee. The conferees urge HUD, in 
conjunction with the lending community, to develop a 
comprehensive loss mitigation program and to propose to the 
Congress any statutory changes necessary to implement such a 
program.
      Finally, the provision substitutes a requirement of 
disclosure of information regarding pre-foreclosure sales for 
the counseling currently required before use of pre-foreclosure 
sales and eliminates a requirement excluding the use of loss 
mitigation tools by enabling mortgagees to make better use of 
recasting and forbearance as part of loss mitigation.
      Inserts language requiring HUD to treat certain FHA 
single family assets in certain distressed neighborhoods 
differently than those in non-revitalization areas in order to 
make the areas sustainable and to diminish the number of 
properties sold to speculators. The provision is designed to 
stabilize the neighborhood by encouraging homeownership of 
good, decent, and structurally sound homes, and replaces the 
current ``right of first refusal'' and discount system.
      HUD is required, in conjunction with local stakeholders, 
to establish revitalization areas. These areas are determined 
on the basis of whether they have a high proportion of low 
income households, a high number of troubled assets, or a low 
rate of homeownership.
      Additionally, the legislation provides for the 
establishment of smaller asset control areas within the larger 
revitalization areas. In those targeted areas, HUD and local 
partners shall implement an agreement to increase the level of 
repair and the level of owner occupant purchasers in those 
specially targeted areas. To encourage these agreements, HUD is 
authorized to offer pricing discounts that are based on an 
appropriate appraisal. HUD is obligated to offer, and the local 
partners are obligated to take, all FHA single family assets 
that are or that become available in these areas.
      Once the revitalization and asset control areas are 
determined, assets offered for sale must be repaired so 
purchasers are not saddled with high repair costs. The 
conferees believe that adequate rehabilitation and renovations 
must be made to these homes to make them attractive to buyers 
as well as to increase the stability of the neighborhood. 
Therefore, rehabilitation standards should include whether the 
homes are in good, safe and habitable condition, whether major 
systems are dependable and in good repair, and whether the 
properties are marketable to owner occupants given the 
standards and preferences of the local community. Though 
preferred purchasers may incorporate higher rehabilitation 
standards, non-preferred purchasers must meet at least minimum 
property standards, as determined by HUD.
      The conferees believe that increasing homeownership in 
these areas is particularly important if they are to become 
sustainable. Therefore, assets (within the control of the 
purchasers) in these areas must be sold to owner occupants in a 
proportion that matches, if not exceeds, the proportion of 
owner occupants in the metropolitan area. Though HUDis given 
the authority, in certain circumstances, to waive this provision, any 
deviations are expected to be rare and merit consultation with local 
units of government and other involved parties. The conferees do not 
intend for HUD to waive the homeownership requirement for solely 
economic consideration. Downward deviations should be only for the 
purpose of strengthening the revitalization of the areas in which they 
may occur.
      The conferees direct HUD to report to Congress annually 
on the number and characteristics of areas designated, or 
rejected, as revitalization and asset control areas. The report 
should include the number of eligible assets within each area 
and the basis for any rejection of designation.

                   conference total--with comparisons

      The total new budget (obligational) authority for the 
fiscal year 1999 recommended by the Committee of Conference, 
with comparisons to the fiscal year 1998 amount, the 1999 
budget estimates, and the House and Senate bills for 1999 
follow:

New budget (obligational) authority, fiscal year 1998... $88,392,163,000
Budget estimates of new (obligational) authority, fiscal 
    year 1999...........................................  93,688,871,105
House bill, fiscal year 1999............................  94,375,545,030
Senate bill, fiscal year 1999...........................  93,331,942,030
Conference agreement, fiscal year 1999..................  93,390,780,030
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      1998..............................................  +4,998,617,030
    Budget estimates of new (obligational) authority, 
      fiscal year 1999..................................    -298,091,075
    House bill, fiscal year 1999........................    -984,765,000
    Senate bill, fiscal year 1999.......................     +58,838.000

                                   Jerry Lewis,
                                   Tom DeLay,
                                   James T. Walsh,
                                   David L. Hobson,
                                   Joe Knollenberg,
                                   R. Frelinghuysen,
                                   Mark W. Neumann,
                                   Roger Wicker,
                                   Bob Livingston,
                                   Louis Stokes,
                                   Alan B. Mollohan,
                                   Marcy Kaptur,
                                   Carrie P. Meek,
                                   David E. Price,
                                   Dave Obey,
                                 Managers on the Part of the House.

                                   Kit Bond,
                                   Conrad Burns,
                                   Ted Stevens,
                                   Richard Shelby,
                                   Ben Nighthorse Campbell,
                                   Larry E. Craig,
                                   Barbara A. Mikulski,
                                   Patrick Leahy,
                                   Frank R. Lautenberg,
                                   Tom Harkin,
                                   Robert C. Byrd,
                                Managers on the Part of the Senate.

                                
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