[House Report 110-205]
[From the U.S. Government Publishing Office]




110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-205

======================================================================



 
     RURAL HOUSING AND ECONOMIC DEVELOPMENT IMPROVEMENT ACT OF 2007

 June 21, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Frank of Massachusetts, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1982]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 1982) to authorize appropriations for the rural 
housing and economic development program of the Department of 
Housing and Urban Development, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
Performance Goals and Objectives.................................     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     5
Advisory Committee Statement.....................................     5
Constitutional Authority Statement...............................     5
Applicability to Legislative Branch..............................     5
Earmark Identification...........................................     5
Section-by-Section Analysis of the Legislation...................     5

                               AMENDMENT

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Rural Housing and Economic Development 
Improvement Act of 2007''.

SEC. 2. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.

  (a) Use.--The Secretary of Housing and Urban Development may carry 
out a program, through the Office of Rural Housing and Economic 
Development, to provide assistance to Indian tribes, State housing 
finance agencies, State community or economic development agencies, 
local nonprofit organizations and community development corporations in 
rural areas to support innovative housing and economic development 
activities in rural areas.
  (b) Requirement of Social Security Account Number for Assistance.--As 
a condition of initial or continuing assistance under any housing or 
economic development activity that is provided assistance with amounts 
made available under this section, the Secretary of Housing and Urban 
Development shall require that each member of a family so assisted (or 
of a family applying for such assistance) who is 18 years of age or 
older or is the spouse of the head of household of such family, shall 
have a valid social security number.
  (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Housing and Urban Development for 
assistance under this section--
          (1) $30,000,000 for fiscal year 2008; and
          (2) $40,000,000 for each of fiscal years 2009, 2010, 2011, 
        2012, and 2013.

                          PURPOSE AND SUMMARY

    H.R. 1982, the Rural Housing and Economic Development 
Improvement Act of 2007, authorizes funding for the Rural 
Housing and Economic Development (RHED) program administered by 
the Department of Housing and Urban Development (HUD).
    H.R. 1982 authorizes $30 million for the U.S. Department of 
Housing and Urban Development's RHED program in FY 2008 and $40 
million for Fiscal Years 2009-2013.

                  BACKGROUND AND NEED FOR LEGISLATION

    RHED, a competitive grant program, was first funded by 
Congress in 1999, but has never been formally authorized. The 
program has provided $175.3 million to support innovative 
housing and economic development programs across the country. 
Because the majority of HUD's resources are devoted to 
assisting urban communities, it is the only exclusively rural 
housing program administered by HUD. The program encourages 
community level approaches that combine both economic and 
housing development.
    According to the Office of Management and Budget numbers, 
RHED has helped to create more than 9,100 jobs and more than 
12,000 housing units. At least 60 percent of the organizations 
that have received RHED funds over the program's history serve 
high- needs regions, such as Appalachia, the Mississippi Delta, 
the Border Colonias, and Native American lands.

                                HEARINGS

    On May 8, 2007, the Subcommittee on Housing and Community 
Opportunity held a hearing entitled ``Rural Housing Programs: 
Review Fiscal Year 2008 Budget and Pending Rural Housing 
Legislation,'' which included testimony from witnesses on H.R. 
1982:

Panel one

           The Honorable Pamela Patenaude, Assistant 
        Secretary for Community Planning and Development, U.S. 
        Department of Housing and Urban Development
           Mr. Russell T. Davis, Administrator for 
        Rural Development Housing and Community Facilities 
        Programs, U.S. Department of Agriculture

Panel two

           Mr. Gideon Anders, National Housing Law 
        Project
           Dr. Tom Carew, Director of Design and 
        Community, Frontier Housing, Inc.
           Mr. Moises Loza, Executive Director, Housing 
        Assistance Council
           Mr. Robert Rice, Jr., Council for Affordable 
        and Rural Housing
           The Honorable Peter Carey, Executive 
        Director of Self Help Enterprises

                        COMMITTEE CONSIDERATION

    The Committee on Financial Services met in open session on 
May 23, 2007, and ordered H.R. 1982, the Rural Housing and 
Economic Development Act of 2007, as amended, favorably 
reported to the House by a voice vote.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken with in conjunction with the 
consideration of this legislation. A motion by Mr. Frank to 
report the bill, as amended, to the House with a favorable 
recommendation was agreed to by a voice vote. During the 
consideration of the bill in Committee, the following amendment 
was considered:
    An amendment by Ms. Brown-Waite, No. 1, requiring the 
social security account number for assistance, was agreed to by 
a voice vote.

                      COMMITTEE OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held hearings and 
made findings that are reflected in this report.

                    PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    H.R. 1982, the Rural Housing and Economic Development 
Improvement Act of 2007, authorizes funding for the Rural 
Housing and Economic Development program administered by HUD 
with the goal of providing a competitive funding source to 
provide for affordable housing and economic development in 
rural America.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        COMMITTEE COST ESTIMATE

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                                      June 1, 2007.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1982, the Rural 
Housing and Economic Opportunity Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Chad Chirico.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 1982--Rural Housing and Economic Development Improvement Act of 
        2007

    Summary: H.R. 1982 would authorize the appropriation of $30 
million in 2008 and $40 million for each of fiscal years 2009 
through 2013 to establish a program to support housing and 
economic development activities in rural areas. Assuming 
appropriation of the authorized amounts, CBO estimates that 
implementing the bill would cost about $100 million over the 
2008-2012 period, with additional amounts spent in later years. 
Enacting H.R. 1982 would not affect direct spending or 
revenues.
    H.R. 1982 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA); 
any costs to state, local, or tribal governments would be 
incurred voluntarily.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1982 is shown in the following table. 
For this estimate, CBO assumes that the amounts authorized by 
the bill will be appropriated by the beginning of each fiscal 
year and that outlays will follow the historical rate of 
spending for similar programs. The costs of this legislation 
fall within budget function 600 (income security).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2008    2009    2010    2011    2012    2013
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level.............................................      30      40      40      40      40      40
Estimated Outlays...............................................       1       8      21      32      39      40
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 1982 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. State, local, and tribal governments that 
participate in economic development activities in rural areas 
would benefit from funds authorized in the bill. Any costs 
those governments incur would be incurred voluntarily.
    Estimate prepared by: Federal Costs: Chad Chirico; Impact 
on State, Local, and Tribal Governments: Lisa Ramirez-Branum; 
Impact on the Private Sector: Page Shevlin.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
man- dates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      ADVISORY COMMITTEE STATEMENT

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

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         EARMARK IDENTIFICATION

    H.R. 1982 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    This section establishes the short title of the bill, the 
``Rural Housing and Economic Development Improvement Act of 
2007.''

Section 2. Rural housing and economic development assistance

    This section authorizes the Rural Housing and Economic 
Devel- opment program administered by Department of Housing and 
Urban Development and authorizes appropriations for the program 
in the amount of $30,000,000 for fiscal year 2008; and 
$40,000,000 for each of fiscal years 2009, 2010, 2011, 2012, 
and 2013.
    The section also requires each member of a family assisted 
by the RHED program to have a valid social security number.

                                  
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