[105th Congress Public Law 276]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ276.105]


[[Page 112 STAT. 2461]]

Public Law 105-276
105th Congress

                                 An Act


 
   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. <<NOTE: Oct. 21, 
                         1998 -  [H.R. 4194]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 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 <<NOTE: Departments of Veterans Affairs and Housing and Urban 
  Development, and Independent Agencies Appropriations Act, 1999.>> 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.

[[Page 112 STAT. 2462]]

                          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''.

[[Page 112 STAT. 2463]]

             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,

[[Page 112 STAT. 2464]]

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

[[Page 112 STAT. 2465]]

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 <<NOTE: Reports.>> (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

[[Page 112 STAT. 2466]]

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, <<NOTE: 36 USC 
2400 note.>> 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.

[[Page 112 STAT. 2467]]

                        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

[[Page 112 STAT. 2468]]

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. <<NOTE: W.G. (Bill) Hefner Salisbury Department of 
Veterans Affairs Medical Center.>> (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) <<NOTE: Effective date.>> 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.

[[Page 112 STAT. 2469]]

    Sec. 111. <<NOTE: Louis Stokes Cleveland Department of Veterans 
Affairs Medical Center.>> (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) <<NOTE: Effective date.>> The provisions of subsection (a) are 
effective on the latter of the first day of the 106th Congress or 
January 3, 1999.

    TITLE <<NOTE: Short 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

[[Page 112 STAT. 2470]]

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

[[Page 112 STAT. 2471]]

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

[[Page 112 STAT. 2472]]

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 of 1937, 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

[[Page 112 STAT. 2473]]

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 Departments of 
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

[[Page 112 STAT. 2474]]

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.

[[Page 112 STAT. 2475]]

                 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 Departments 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 <<NOTE: Reports.>> 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

[[Page 112 STAT. 2476]]

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

[[Page 112 STAT. 2477]]

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

[[Page 112 STAT. 2478]]

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 <<NOTE: 42 USC 5305 note.>> 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

[[Page 112 STAT. 2479]]

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.

[[Page 112 STAT. 2480]]

                          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

[[Page 112 STAT. 2481]]

$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.

[[Page 112 STAT. 2482]]

                      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 funds of 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

[[Page 112 STAT. 2483]]

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 Mortgage 
Corporation Act <<NOTE: 12 USC 1454.>> 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: ``; 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 <<NOTE: 12 USC 4513.>> is 
amended by redesignating paragraphs (9), (10), and (11) as paragraphs 
(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

[[Page 112 STAT. 2484]]

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. <<NOTE: 42 USC 5305 note.>> 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 <<NOTE: 12 USC 1715z-11a.>> 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

[[Page 112 STAT. 2485]]

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) <<NOTE: Effective date. 42 USC 1437f note.>> This section shall 
take effect 60 days after the later of October 1, 1998 or the date of 
the 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

[[Page 112 STAT. 2486]]

            (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 <<NOTE: 12 USC 1707 note.>> 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 <<NOTE: 12 USC 1709 
note.>> 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, <<NOTE: 12 USC 1715w.>> 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 <<NOTE: 12 USC 1715w note.>> 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

[[Page 112 STAT. 2487]]

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)--

[[Page 112 STAT. 2488]]

            (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 the 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 the 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) <<NOTE: 42 USC 11902.>> in section 5123, by inserting 
        ``Indian tribes'' before ``and private'';
            (2) <<NOTE: 42 USC 11903.>> in section 5124(a)(7), by 
        inserting ``, an Indian tribe,'' before ``or tribally 
        designated'';
            (3) <<NOTE: 42 USC 11904.>> in section 5125, by inserting 
        ``an Indian tribe'' before ``a tribally designated''; and
            (4) <<NOTE: 42 USC 11905.>> 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).''.

[[Page 112 STAT. 2489]]

                      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. <<NOTE: 12 USC 1715l.>> 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 
        the 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;

[[Page 112 STAT. 2490]]

                    ``(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 <<NOTE: 12 USC 1709 note.>> Secretary of 
Housing and Urban Development shall develop the disclosure notice under 
subsection (a) within 150 days of the enactment through notice and 
comment rulemaking.

    Sec. 226. <<NOTE: 42 USC 1437 note.>> Funding of Certain Public 
Housing.--Notwithstanding any other provision of law, no funds in this 
Act 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 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, <<NOTE: 12 USC 1715z-1.>> 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

[[Page 112 STAT. 2491]]

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.

[[Page 112 STAT. 2492]]

                            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 <<NOTE: 42 USC 5305.>> 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 <<NOTE: Short 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.

[[Page 112 STAT. 2493]]

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

[[Page 112 STAT. 2494]]

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.

[[Page 112 STAT. 2495]]

                        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 per diem 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

[[Page 112 STAT. 2496]]

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 the 
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

[[Page 112 STAT. 2497]]

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, <<NOTE: 42 USC 6991b note.>> 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

[[Page 112 STAT. 2498]]

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, <<NOTE: 42 USC 300j-12 
note.>> 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

[[Page 112 STAT. 2499]]

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, <<NOTE: 42 USC 6908a.>> 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, <<NOTE: 7 USC 1360 
note.>> 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 and implementation, 
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 <<NOTE: 42 USC 4370e.>> Public Law 104-204, 
after the phrase, ``that such fund shall be paid in advance'', insert 
``or reimbursed''.

                        administrative provision

    Not <<NOTE: Regulations. 33 USC 2720 note.>> 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.

[[Page 112 STAT. 2500]]

                    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, <<NOTE: 42 USC 4342 
note.>> 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.

[[Page 112 STAT. 2501]]

             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, <<NOTE: 15 USC 2222 note.>> 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.

[[Page 112 STAT. 2502]]

                radiological emergency preparedness fund

    There <<NOTE: 42 USC 5196e.>> 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 expenses under 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''.

[[Page 112 STAT. 2503]]

    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.

[[Page 112 STAT. 2504]]

                             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).

[[Page 112 STAT. 2505]]

                  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,

[[Page 112 STAT. 2506]]

$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.

[[Page 112 STAT. 2507]]

TITLE <<NOTE: Short 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.

[[Page 112 STAT. 2508]]

    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. <<NOTE: Contracts. Public information. Records.>> 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.

[[Page 112 STAT. 2509]]

    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. <<NOTE: Reports.>> 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) <<NOTE: Notice.>> 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.

[[Page 112 STAT. 2510]]

    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. <<NOTE: Deadline. Reports. 15 USC 1201 note.>> (a) Within 
90 days of the 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 <<NOTE: 36 USC 151302 note.>> (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

[[Page 112 STAT. 2511]]

            (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 <<NOTE: 36 USC 151304 
note.>> (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 <<NOTE: 36 USC 151307 
note.>> (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 the 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. <<NOTE: Deadlines. Safety.>> (a) Not later than 90 days 
after the date of the 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

[[Page 112 STAT. 2512]]

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) <<NOTE: Regulations.>> 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. <<NOTE: 42 USC 6614 note.>> 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;

[[Page 112 STAT. 2513]]

            (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. <<NOTE: 42 USC 2458b note.>> 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

[[Page 112 STAT. 2514]]

                70112(a)(3) of title 49, United States Code, for a 
                launch. The Administrator <<NOTE: Federal Register, 
                publication. Notice.>> 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. <<NOTE: Public 
                information.>> 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

[[Page 112 STAT. 2515]]

                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 <<NOTE: Applicability.>> 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 the 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 the 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 the 
        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,

[[Page 112 STAT. 2516]]

        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. <<NOTE: 43 USC 1629g.>> (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.

[[Page 112 STAT. 2517]]

                    ``(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--

[[Page 112 STAT. 2518]]

            ``(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) <<NOTE: Deadline.>> The Secretary shall, within one year of 
the 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 <<NOTE: Deadline.>> 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. <<NOTE: Deadline.>> 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 the 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. <<NOTE: Federal buildings and facilities.>> 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 <<NOTE: Quality Housing and Work Responsibility Act of 
1998.>> HOUSING AND TENANT-BASED ASSISTANCE REFORM

SEC. 501. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This <<NOTE: 42 USC 1437 note.>> title may be 
cited as the ``Quality Housing and Work Responsibility Act of 1998''.

[[Page 112 STAT. 2519]]

    (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.

[[Page 112 STAT. 2520]]

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. <<NOTE: 42 USC 1437 note.>> 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;

[[Page 112 STAT. 2521]]

            (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. <<NOTE: 42 USC 1437 note.>> 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

[[Page 112 STAT. 2522]]

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 <<NOTE: Deadline.>> 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 <<NOTE: Deadline. Federal Register, publication.>> 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

[[Page 112 STAT. 2523]]

                    ``(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:

[[Page 112 STAT. 2524]]

            (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 assisted by 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;

[[Page 112 STAT. 2525]]

                          ``(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.

[[Page 112 STAT. 2526]]

    (d) Effective <<NOTE: 42 USC 1437a note.>> 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 <<NOTE: Applicability.>> 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

[[Page 112 STAT. 2527]]

                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--

[[Page 112 STAT. 2528]]

                          ``(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 <<NOTE: Applicability. 42 USC 1437a 
        note.>> 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--

[[Page 112 STAT. 2529]]

                          (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) <<NOTE: New York.>> 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 <<NOTE: 42 USC 1437a 
        note.>> 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;
                          (iii) in paragraph (3), by striking the period 
                      at the end and inserting ``; and''; and
                          (ii) 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

[[Page 112 STAT. 2530]]

                    (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.--

[[Page 112 STAT. 2531]]

                          ``(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 <<NOTE: 42 USC 1437o note.>> 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. <<NOTE: 42 USC 1437c-1.>> 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.

[[Page 112 STAT. 2532]]

            ``(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 <<NOTE: Effective 
        date.>> 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--

[[Page 112 STAT. 2533]]

                    ``(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;

[[Page 112 STAT. 2534]]

                    ``(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 <<NOTE: Establishment.>> 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

[[Page 112 STAT. 2535]]

        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 <<NOTE: Deadline.>> 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,

[[Page 112 STAT. 2536]]

        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).

[[Page 112 STAT. 2537]]

            ``(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

[[Page 112 STAT. 2538]]

                    ``(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 <<NOTE: Deadline. 42 USC 1437c-1 note.>> 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 <<NOTE: Deadline.>> regulations.--Not later than 1 
        year after the date of the 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 <<NOTE: Publication.>> 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 <<NOTE: 42 USC 1437c-1 note.>> 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

[[Page 112 STAT. 2539]]

        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 <<NOTE: 42 USC 1437c-1.>> 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));

[[Page 112 STAT. 2540]]

                    ``(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

[[Page 112 STAT. 2541]]

        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

[[Page 112 STAT. 2542]]

                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

[[Page 112 STAT. 2543]]

                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

[[Page 112 STAT. 2544]]

                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

[[Page 112 STAT. 2545]]

                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

[[Page 112 STAT. 2546]]

        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).

[[Page 112 STAT. 2547]]

                    ``(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 <<NOTE: 42 USC 1437n note.>> 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

[[Page 112 STAT. 2548]]

        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 <<NOTE: 42 USC 1437f 
        note.>> 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 <<NOTE: 42 USC 1437f note.>> 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

[[Page 112 STAT. 2549]]

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 <<NOTE: 12 USC 1701s note.>> 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

[[Page 112 STAT. 2550]]

                          ``(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. <<NOTE: 42 USC 1437z-2.>> 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. <<NOTE: 42 USC 1437 note.>> 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.''.

[[Page 112 STAT. 2551]]

                       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

[[Page 112 STAT. 2552]]

        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);

[[Page 112 STAT. 2553]]

                    ``(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

[[Page 112 STAT. 2554]]

                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;

[[Page 112 STAT. 2555]]

                          ``(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 regulations under 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 <<NOTE: Effective date.>> and provided. This 
        subsection shall take effect on the date of the enactment of the 
        Quality Housing and Work Responsibility Act of 1998.

[[Page 112 STAT. 2556]]

            ``(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 <<NOTE: Contracts.>> 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;

[[Page 112 STAT. 2557]]

            ``(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) <<NOTE: Federal Register, 
                      publication.>> 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;

[[Page 112 STAT. 2558]]

                          ``(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

[[Page 112 STAT. 2559]]

        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 <<NOTE: Federal Register, 
        publication.>> 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.--

[[Page 112 STAT. 2560]]

                    ``(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.''.

[[Page 112 STAT. 2561]]

    (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 <<NOTE: 42 USC 1437a note.>> 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 <<NOTE: 42 USC 1437g note.>> 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

[[Page 112 STAT. 2562]]

        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 <<NOTE: 42 USC 1437g note.>> 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 <<NOTE: 42 USC 1437g note.>> 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 
the costs 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''.

[[Page 112 STAT. 2563]]

    (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

[[Page 112 STAT. 2564]]

                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 Devel-
        opment, and Independent Agencies Appropriations Act, 1996 (as 
        contained in section 101(e) of the Omnibus Consolidated 
        Rescissions and Appropriations Act of 1996; <<NOTE: 42 USC 1437f 
        note.>> 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

[[Page 112 STAT. 2565]]

                          (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 <<NOTE: 42 USC 1437l note.>> Provisions.--
            (1) In <<NOTE: Applicability.>> 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

[[Page 112 STAT. 2566]]

                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

[[Page 112 STAT. 2567]]

        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

[[Page 112 STAT. 2568]]

                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 <<NOTE: 42 USC 1437a note.>> 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. <<NOTE: 42 USC 1437z-3.>> 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

[[Page 112 STAT. 2569]]

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 <<NOTE: Effective date.>> section shall 
take effect upon the date of the effectiveness of regulations issued by 
the Secretary to carry out this section. Such regulations shall 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.--

[[Page 112 STAT. 2570]]

            ``(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--

[[Page 112 STAT. 2571]]

                    ``(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) <<NOTE: Notification.>> will notify each 
                family residing in a project subject to demolition or 
                disposition 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 
                      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;

[[Page 112 STAT. 2572]]

                    ``(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

[[Page 112 STAT. 2573]]

                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 <<NOTE: 42 USC 1437aaa-3 note.>> 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 the enactment of this Act, 
the public housing projects described in section

[[Page 112 STAT. 2574]]

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 the enactment 
        of this Act.

    (c) Applicability.--This <<NOTE: 42 USC 1437p note.>> 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;

[[Page 112 STAT. 2575]]

                    ``(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 the 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)--

[[Page 112 STAT. 2576]]

                    (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 assistance may 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

[[Page 112 STAT. 2577]]

                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 <<NOTE: Deadline.>> 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--

[[Page 112 STAT. 2578]]

                    ``(A) <<NOTE: Notification.>> 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 <<NOTE: 42 USC 1437t note.>> 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

[[Page 112 STAT. 2579]]

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. <<NOTE: 42 USC 1437w.>> 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

[[Page 112 STAT. 2580]]

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

[[Page 112 STAT. 2581]]

        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--

[[Page 112 STAT. 2582]]

                    ``(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.

[[Page 112 STAT. 2583]]

            ``(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

[[Page 112 STAT. 2584]]

        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

[[Page 112 STAT. 2585]]

                      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

[[Page 112 STAT. 2586]]

        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 <<NOTE: 42 USC 1437v note.>> 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. <<NOTE: 42 USC 1437z-4.>> 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

[[Page 112 STAT. 2587]]

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) <<NOTE: Notification.>> 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.

[[Page 112 STAT. 2588]]

            ``(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

[[Page 112 STAT. 2589]]

provisions of this Act, is further amended by adding at the end the 
following new section:

``SEC. 33. <<NOTE: 42 USC 1437z-5.>> 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) <<NOTE: Guidelines.>> 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.--

[[Page 112 STAT. 2590]]

                    ``(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) <<NOTE: Notification.>> 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;

[[Page 112 STAT. 2591]]

                    ``(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.--

[[Page 112 STAT. 2592]]

            ``(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) <<NOTE: 42 USC 1437z-5 note.>> 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 <<NOTE: Applicability.>> 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. <<NOTE: 42 USC 1437z-6.>> 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;

[[Page 112 STAT. 2593]]

            ``(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.''.

[[Page 112 STAT. 2594]]

    (b) Assessment <<NOTE: Deadline.>> 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 <<NOTE: Effective date.>> 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. <<NOTE: 42 USC 1437z-7.>> 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

[[Page 112 STAT. 2595]]

        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,

[[Page 112 STAT. 2596]]

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 <<NOTE: 42 USC 1437z-7 note.>> 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.

[[Page 112 STAT. 2597]]

                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

[[Page 112 STAT. 2598]]

                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

[[Page 112 STAT. 2599]]

                      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 person under 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,

[[Page 112 STAT. 2600]]

                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

[[Page 112 STAT. 2601]]

                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). <<NOTE: Records.>> 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 assistance payments 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

[[Page 112 STAT. 2602]]

                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

[[Page 112 STAT. 2603]]

                      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

[[Page 112 STAT. 2604]]

                      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 <<NOTE: 42 USC 1437f note.>> 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--

[[Page 112 STAT. 2605]]

                          ``(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 <<NOTE: Federal Register, 
                publication. Notice.>> fiscal years.--For subsequent 
                fiscal years, the Secretary shall publish a notice in 
                the Federal

[[Page 112 STAT. 2606]]

                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

[[Page 112 STAT. 2607]]

        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 <<NOTE: 42 USC 1437f note.>> 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

[[Page 112 STAT. 2608]]

            (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

[[Page 112 STAT. 2609]]

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''

[[Page 112 STAT. 2610]]

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;

[[Page 112 STAT. 2611]]

            (2) in paragraph (3))--
                    (A) by striking ``(b) or''; and
                    (B) <<NOTE: Procedures.>> 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. <<NOTE: 42 USC 1437f note.>> 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). <<NOTE: Applicability.>> 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

[[Page 112 STAT. 2612]]

                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

[[Page 112 STAT. 2613]]

                    ``(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 <<NOTE: 42 USC 1437f note.>> 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 <<NOTE: Effective date. 42 USC 1437f 
note.>> 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 <<NOTE: Notice. Deadline. Regulations. 42 
USC 1437f note.>> 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

[[Page 112 STAT. 2614]]

        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 <<NOTE: Deadline.>> 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

[[Page 112 STAT. 2615]]

                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. <<NOTE: 42 USC 1437f note.>> 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 <<NOTE: Deadline.>> 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 the 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--

[[Page 112 STAT. 2616]]

                    (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) <<NOTE: Public information.>> 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. <<NOTE: 42 USC 1437bbb.>> 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

[[Page 112 STAT. 2617]]

                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. <<NOTE: 42 USC 1437bbb-1.>> 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

[[Page 112 STAT. 2618]]

        (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 <<NOTE: Indiana.>> 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. <<NOTE: 42 USC 1437bbb-2.>> 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);

[[Page 112 STAT. 2619]]

            ``(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. <<NOTE: 42 USC 1437bbb-3.>> 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 the 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. <<NOTE: 42 USC 1437bbb-4.>> 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).

[[Page 112 STAT. 2620]]

            ``(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. <<NOTE: 42 USC 1437bbb-5.>> 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

[[Page 112 STAT. 2621]]

                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 <<NOTE: Notification. Deadlines.>> 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. <<NOTE: Public 
        information.>> 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.

[[Page 112 STAT. 2622]]

            ``(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

[[Page 112 STAT. 2623]]

        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. <<NOTE: 42 USC 1437bbb-6.>> 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. <<NOTE: 42 USC 1437bbb-7.>> 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 <<NOTE: Deadline.>> 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

[[Page 112 STAT. 2624]]

        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. <<NOTE: 42 USC 1437bbb-8.>> 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. <<NOTE: 42 USC 1437bbb-9.>> 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 <<NOTE: Deadline. Reports.>> 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. <<NOTE: 42 USC 1437bbb note.>> 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. <<NOTE: 42 USC 1437d note.>> 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

[[Page 112 STAT. 2625]]

        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.

[[Page 112 STAT. 2626]]

            (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 <<NOTE: Deadline.>> 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 ) <<NOTE: Deadlines.>> 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).

[[Page 112 STAT. 2627]]

    (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

[[Page 112 STAT. 2628]]

                          (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) <<NOTE: Applicability.>> 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:

[[Page 112 STAT. 2629]]

    ``(B)(i) <<NOTE: Notification.>> 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

[[Page 112 STAT. 2630]]

        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

[[Page 112 STAT. 2631]]

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 <<NOTE: 42 USC 1437d note.>> 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 
the enactment of this Act.

    (c) Technical Correction Regarding Applicability to Section 8.--
Section 8(h) of the United States Housing Act <<NOTE: 42 USC 1437f.>> of 
1937 is amended by inserting ``(except as provided in section 6( 
j)(3))'' after ``section 6''.

[[Page 112 STAT. 2632]]

    (d) Implementation.--The <<NOTE: 42 USC 1437d note.>> 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 <<NOTE: 42 USC 1437d note.>> 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 <<NOTE: 42 USC 1437c.>> 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 <<NOTE: Deadline.>> 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

[[Page 112 STAT. 2633]]

                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) <<NOTE: Regulations.>> 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) <<NOTE: Reports.>> 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,

[[Page 112 STAT. 2634]]

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

[[Page 112 STAT. 2635]]

                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

[[Page 112 STAT. 2636]]

                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. <<NOTE: Regulations.>> 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. <<NOTE: Courts.>> 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

[[Page 112 STAT. 2637]]

        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

[[Page 112 STAT. 2638]]

                                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--

[[Page 112 STAT. 2639]]

                                    ``(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. <<NOTE: 42 USC 13661.>> 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 <<NOTE: Standards.>> 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--

[[Page 112 STAT. 2640]]

                    (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 <<NOTE: 42 USC 1437d.>> 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. <<NOTE: 42 USC 13662.>> TERMINATION OF TENANCY AND ASSISTANCE 
            FOR ILLEGAL DRUG USERS AND ALCOHOL ABUSERS IN FEDERALLY 
            ASSISTED HOUSING.

    (a) In <<NOTE: Standards.>> 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

[[Page 112 STAT. 2641]]

            (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. <<NOTE: 42 USC 13663.>> 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.

[[Page 112 STAT. 2642]]

    (d) Opportunity <<NOTE: Records.>> 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. <<NOTE: 42 USC 13664.>> 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;

[[Page 112 STAT. 2643]]

                    (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. <<NOTE: 42 USC 1437 note.>> ANNUAL REPORT.

    (a) In <<NOTE: Deadline.>> 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).

[[Page 112 STAT. 2644]]

            (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 <<NOTE: 12 USC 1454 note.>> 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

[[Page 112 STAT. 2645]]

                    (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. <<NOTE: 42 USC 1437 note.>> 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. <<NOTE: 42 USC 1437 note.>> 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;

[[Page 112 STAT. 2646]]

            (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 <<NOTE: Deadline.>> 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. <<NOTE: Public and Assisted Housing Drug Elimination Program 
            Amendments of 1998. Law enforcement and crime. 42 USC 11901 
            note.>> 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,

[[Page 112 STAT. 2647]]

        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'';

[[Page 112 STAT. 2648]]

            (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) One-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 <<NOTE: Regulations.>> 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

[[Page 112 STAT. 2649]]

        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 <<NOTE: 42 USC 11906-
11909.>> is amended by striking sections 5127, 5128, 5129, and 5130 and 
inserting the following new sections:

``SEC. 5127. <<NOTE: 42 USC 11906.>> 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 <<NOTE: Deadline.>> 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 <<NOTE: Federal Register, publication.>> 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. <<NOTE: 42 USC 11907.>> 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

[[Page 112 STAT. 2650]]

        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. <<NOTE: 42 USC 11908.>> 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 6.25 percent 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. <<NOTE: 42 USC 11907 note.>> 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 <<NOTE: Deadline.>> later than 180 days after the 
date of the enactment of this Act, the Secretary shall complete the 
investigation

[[Page 112 STAT. 2651]]

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. <<NOTE: 42 USC 3608 note.>> TREATMENT OF OCCUPANCY STANDARDS.

    (a) Establishment <<NOTE: Deadline. Federal Register, 
publication. Notice.>> 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. <<NOTE: 42 USC 5301 note.>> 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

[[Page 112 STAT. 2652]]

        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. <<NOTE: 42 USC 3535 note.>> REPORT ON SINGLE FAMILY AND 
            MULTIFAMILY HOMES.

    (a) In <<NOTE: Deadline.>> 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;

[[Page 112 STAT. 2653]]

                          (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).

[[Page 112 STAT. 2654]]

    (b) Effective <<NOTE: 42 USC 1436a note.>> 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

[[Page 112 STAT. 2655]]

            (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) <<NOTE: 12 USC 1715z-20 note.>> 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 <<NOTE: Deadline.>> 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 <<NOTE: 12 USC 1715z-20 note.>> 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.--

[[Page 112 STAT. 2656]]

    Subparagraph (C) of section 106(c)(5) of the Housing and Urban 
Development Act of 1968 <<NOTE: 12 USC 1701x.>> 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 <<NOTE: 12 USC 1701x note.>> 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

[[Page 112 STAT. 2657]]

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:

[[Page 112 STAT. 2658]]

                    ``(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

[[Page 112 STAT. 2659]]

                (25 U.S.C. 4161 et seq.) is amended by adding at the end 
                the following:

``SEC. 408. <<NOTE: 25 USC 4168.>> 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, <<NOTE: 42 USC 1437 note.>> I 
        (42 U.S.C. 1437a note) is amended by striking subsection (e).

    (f ) Effective <<NOTE: 12 USC 1715z-13a note.>> 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 <<NOTE: 42 USC 5305 note.>> 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 <<NOTE: Effective date.>> 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 <<NOTE: 42 USC 1437f note.>> 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.

[[Page 112 STAT. 2660]]

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). <<NOTE: Effective date.>> 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 <<NOTE: 12 USC 1715z-1b note.>> 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 <<NOTE: 42 USC 5402 note.>> 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 <<NOTE: 42 USC 12744.>> 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 <<NOTE: 42 USC 12745.>> 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 <<NOTE: 42 USC 12744 note.>> amendments made 
by this section are made on, and shall apply beginning upon, the date of 
the enactment of this Act.

[[Page 112 STAT. 2661]]

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 <<NOTE: 42 USC 1490a.>> 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

[[Page 112 STAT. 2662]]

        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) <<NOTE: 42 USC 1472.>> 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), <<NOTE: 42 USC 1479.>> 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) <<NOTE: 42 USC 1483.>> 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'';

[[Page 112 STAT. 2663]]

                          (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 <<NOTE: 42 USC 1490a.>> 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, <<NOTE: 42 USC 1490j.>> 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 <<NOTE: 42 USC 1472 note.>> 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 <<NOTE: 42 USC 4026 note.>> 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

[[Page 112 STAT. 2664]]

                    (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 <<NOTE: Applicability. 42 USC 12805 
note.>> 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 <<NOTE: 42 USC 12805 note.>> 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.

[[Page 112 STAT. 2665]]

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

[[Page 112 STAT. 2666]]

total mortgage principal obligation (including such initial service 
charges, and such appraisal, inspection, and other fees as the Secretary 
shall approve).
    ``(h) <<NOTE: Contracts.>> 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 <<NOTE: 12 USC 1715z-2 note.>> 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. <<NOTE: 12 USC 1701z-1 note.>> 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

[[Page 112 STAT. 2667]]

        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

[[Page 112 STAT. 2668]]

            (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 <<NOTE: 42 USC 1436d.>> 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 <<NOTE: Deadline. Chicago.>> 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

[[Page 112 STAT. 2669]]

(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 <<NOTE: Oklahoma.>> 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.

[[Page 112 STAT. 2670]]

    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 <<NOTE: Florida. Bethune-Cookman 
        College.>> 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 <<NOTE: Contracts. Rhode Island.>> 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 <<NOTE: 42 USC 1436d note.>> 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

[[Page 112 STAT. 2671]]

        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

[[Page 112 STAT. 2672]]

                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 <<NOTE: Publication. Guidelines.>> 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

[[Page 112 STAT. 2673]]

                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 <<NOTE: Federal Register, publication. Notice. 12 USC 
1710 note.>> 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

[[Page 112 STAT. 2674]]

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 <<NOTE: 12 USC 1715u.>> 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 <<NOTE: 12 USC 1735f-
14.>> 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--

[[Page 112 STAT. 2675]]

                          ``(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--

[[Page 112 STAT. 2676]]

                          ``(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

[[Page 112 STAT. 2677]]

                      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

[[Page 112 STAT. 2678]]

                      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

[[Page 112 STAT. 2679]]

                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.

[[Page 112 STAT. 2680]]

            ``(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. <<NOTE: Effective date.>> 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''.

    Approved October 21, 1998.

LEGISLATIVE HISTORY--H.R. 4194 (S. 2168):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 105-610 (Comm. on Appropriations) and 105-769 (Comm. 
of Conference).
SENATE REPORTS: No. 105-216 accompanying S. 2168 (Comm. on 
Appropriations)
CONGRESSIONAL RECORD, Vol. 144 (1998):
            July 17, 23, 29, considered and passed House.
            July 30, considered and passed Senate, amended, in lieu of 
                S. 2168.
            Oct. 6, House agreed to conference report.
            Oct. 8, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998):
            Oct. 21, Presidential statement.

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