[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.