[105th Congress Public Law 65]
[From the U.S. Government Printing Office]


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[DOCID: f:publ65.105]


[[Page 1343]]

                    DEPARTMENTS OF VETERANS AFFAIRS 
                   AND HOUSING AND URBAN DEVELOPMENT, 
                        AND INDEPENDENT AGENCIES 
                        APPROPRIATIONS ACT, 1998

[[Page 111 STAT. 1344]]

Public Law 105-65
105th Congress

                                 An Act


 
   Making appropriations for the Departments of Veterans Affairs and 
  Housing and Urban Development, and for sundry independent agencies, 
   commissions, corporations, and offices for the fiscal year ending 
      September 30, 1998, and for other purposes. <<NOTE: Oct. 27, 
                         1997 -  [H.R. 2158]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1998.>> 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, commissions, 
corporations, and offices for the fiscal year ending September 30, 1998, 
and for other purposes, namely:

                                 TITLE I

                     DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration

                        compensation and pensions

                     (including transfers of funds)

    For the payment of compensation benefits to or on behalf of veterans 
and a pilot program for disability examinations as authorized by law (38 
U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61); pension benefits 
to or on behalf of veterans as authorized by law (38 U.S.C. chapters 15, 
51, 53, 55, and 61; 92 Stat. 2508); and burial benefits, emergency and 
other officers' retirement pay, adjusted-service credits and 
certificates, payment of premiums due on commercial life insurance 
policies guaranteed under the provisions of Article IV of the Soldiers' 
and Sailors' Civil Relief Act of 1940, as amended, and for other 
benefits as authorized by law (38 U.S.C. 107, 1312, 1977, and 2106, 
chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat. 122, 
123; 45 Stat. 735; 76 Stat. 1198); $19,932,997,000, to remain available 
until expended: Provided, That not to exceed $26,380,000 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

[[Page 111 STAT. 1345]]

nursing home care provided to pensioners as authorized by the Veterans' 
Benefits Act of 1992 (38 U.S.C. chapter 55).

                          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, $1,366,000,000, 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, $51,360,000, 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 1998, 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 1998 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, $160,437,000, 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, $200,000, which may be transferred

[[Page 111 STAT. 1346]]

to and merged with the appropriation for ``General operating expenses''.

             vocational rehabilitation loans program account

                      (including transfer of funds)

    For the cost of direct loans, $44,000, 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 $2,278,000.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, $388,000, 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); $17,057,396,000, plus reimbursements: Provided, That 
of the funds made available under this heading, $570,000,000 is for the 
equipment and land and structures object classifications only, which

[[Page 111 STAT. 1347]]

amount shall not become available for obligation until August 1, 1998, 
and shall remain available until September 30, 1999: Provided further, 
That of the amount made available under this heading, not to exceed 
$5,000,000 shall be for a study on the cost-effectiveness of contracting 
with local hospitals in east central Florida for the provision of non-
emergent inpatient health care needs of veterans.
    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, 1999, $272,000,000, plus 
reimbursements.

       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; $59,860,000, plus 
reimbursements.

                    general post fund, national homes

                      (including transfer of funds)

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

                       Departmental Administration

                       general operating expenses

    For necessary operating expenses of the Department of 
Veterans Affairs, not otherwise provided for, including uniforms or 
allowances therefor; not to exceed $25,000 for official reception and 
representation expenses; hire of passenger motor vehicles; and 
reimbursement of the General Services Administration for security guard 
services, and the Department of Defense for the cost of

[[Page 111 STAT. 1348]]

overseas employee mail; $786,135,000: Provided, That funds under this 
heading shall be available to administer the Service Members 
Occupational Conversion and Training Act: Provided further, That none of 
the funds made available under this heading may be used for the 
relocation of the loan guaranty divisions of the Department of Veterans 
Affairs Regional Office in St. Petersburg, Florida to the Department of 
Veterans Affairs Regional Office in Atlanta, Georgia.

                        national cemetery system

    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 three passenger motor vehicles for use in 
cemeterial operations; and hire of passenger motor vehicles, 
$84,183,000.

                       office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, $31,013,000.

                      construction, major projects

    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, $177,900,000, to remain available 
until expended: Provided, That the $32,100,000 provided under this 
heading in Public Law 104-204 for the replacement hospital at Travis Air 
Force Base, Fairfield, California, shall not be obligated for that 
purpose but shall be available for any project approved by the Congress 
in the budgetary process: Provided further, 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: <<NOTE: Contracts.>> Provided 
further, That funds provided in this appropriation for fiscal year 1998, 
for each approved project shall be obligated: (1) by the awarding of a 
construction documents contract by September 30, 1998; and (2) by the 
awarding of a construction contract by September 30, 1999: Provided 
further, <<NOTE: Reports.>> That the Secretary shall promptly report in 
writing to the Committees on Appropriations any approved major 
construction project in which obligations are not incurred within the 
time limitations established above: Provided further, That no funds from 
any other account except the ``Parking revolving fund'', may be 
obligated for constructing, altering, extending, or improving a project 
which was approved in the budget process and funded

[[Page 111 STAT. 1349]]

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.

                      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, 
$80,000,000, to remain available until expended.

         grants for the construction of state veteran cemeteries

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

                        administrative provisions

                      (including transfer of funds)

    Sec. 101. Any appropriation for fiscal year 1998 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 1998 for salaries and expenses shall be 
available for services authorized by 5 U.S.C. 3109.

[[Page 111 STAT. 1350]]

    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 1998 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 1997.
    Sec. 106. Appropriations accounts available to the Department of 
Veterans Affairs for fiscal year 1998 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 1998, 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 1998, 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 
1998, 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. Section 214(l)(1)(D) of the Immigration and Nationality 
Act (8 U.S.C. 1184(l)(1)(D)) (as added by section 220 of the Immigration 
and Nationality Technical Corrections Act of 1994 and redesignated as 
subsection (l) by section 671(a)(3)(A) of the Illegal Immigration Reform 
and Immigrant Responsibility Act of 1996) is amended by inserting before 
the period at the end the following: ``, except that, in the case of a 
request by the Department of Veterans Affairs, the alien shall not be 
required to practice medicine in a geographic area designated by the 
Secretary''.
    Sec. 109. In accordance with section 1557 of title 31, United States 
Code, the following obligated balance shall be exempt from subchapter IV 
of chapter 15 of such title and shall remain available for expenditure 
without fiscal year limitation: Funds obligated by

[[Page 111 STAT. 1351]]

the Department of Veterans Affairs for lease number 757-084B-001-91 from 
funds made available in the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 1993 
(Public Law 102-389) under the heading ``Medical care''.

                                TITLE II

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                        Public and Indian Housing

                        housing certificate fund

                     (including transfers 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, 
$9,373,000,000, to remain available until expended: Provided, That of 
the total amount provided under this heading, $8,180,000,000 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 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 the Secretary may determine not 
to apply section 8(o)(6)(B) of the Act to housing vouchers during fiscal 
year 1998: Provided further, That of the total amount provided under 
this heading, $850,000,000 shall be for amendments to section 8 
contracts other than contracts for projects developed under section 202 
of the Housing Act of 1959, as amended: Provided further, That of the 
total amount provided under this heading, $343,000,000 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 the conversion of 
section 23 projects to assistance under section 8; for funds to carry 
out the family unification program; and for the relocation of witnesses 
in connection with efforts to combat crime in public and assisted 
housing pursuant to a request from a law enforcement or prosecution 
agency: Provided further, That of the total amount made available in the 
preceding proviso, $40,000,000 shall be made available to nonelderly 
disabled families affected by the designation of a public housing 
development under section 7 of such Act, the establishment of 
preferences in accordance with section 651 of the Housing and Community 
Development Act of 1992 (42 U.S.C. 1361l), or the restriction of 
occupancy to elderly families in accordance with section 658 of such 
Act, and to the extent the Secretary determines that such amount is not 
needed to fund applications for such affected families, to other 
nonelderly disabled families: Provided further, That the amount made 
available

[[Page 111 STAT. 1352]]

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 all balances, 
as of September 30, 1997, remaining in the ``Annual Contributions for 
Assisted Housing'' account and the ``Prevention of Resident 
Displacement'' account for use in connection with expiring or 
terminating section 8 subsidy contracts and for amendments to section 8 
contracts other than contracts for projects developed under section 202 
of the Housing Act of 1959, as amended, shall be transferred to and 
merged with the amounts provided for those purposes under this heading.

                 section 8 reserve preservation account

    The amounts recaptured during fiscal year 1998 that were heretofore 
made available to public housing agencies for tenant-based assistance 
under the section 8 existing housing certificate and housing voucher 
programs from the Annual Contributions for Assisted Housing account 
shall be collected in the account under this heading, for use as 
provided for under this heading, as set forth under the Annual 
Contributions for Assisted Housing heading in chapter 11 of Public Law 
105-18, approved June 12, 1997.

                annual contributions for assisted housing

              (including rescission and transfer of funds)

    Notwithstanding any other provision of law, of the amounts 
recaptured under this heading during fiscal year 1998 and prior years, 
$550,000,000, heretofore maintained as section 8 reserves made available 
to housing agencies for tenant-based assistance under the section 8 
existing housing certificate and housing voucher programs, are 
rescinded.
    All balances outstanding as of September 30, 1997, in the Preserving 
Existing Housing Investment Account for the Preservation program shall 
be transferred to and merged with the amounts previously provided for 
those purposes under this heading.

                       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), 
$2,500,000,000, to remain available until expended:

[[Page 111 STAT. 1353]]

Provided, That of the total amount, $30,000,000 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 program 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, 1997, of funds heretofore provided (other than for Indian 
families) for the development or acquisition costs of public housing, 
for modernization of existing public housing projects, for public 
housing amendments, for public housing modernization and development 
technical assistance, for lease adjustments under the section 23 
program, and for the Family Investment Centers program, shall be 
transferred to and merged with amounts made available under this 
heading.

                      public housing operating fund

                      (including transfer of funds)

    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), 
$2,900,000,000, to remain available until expended: Provided, That all 
balances outstanding, as of September 30, 1997, of funds heretofore 
provided (other than for Indian families) for payments to public housing 
agencies for operating subsidies for low-income housing projects, shall 
be transferred to and merged with amounts made available under this 
heading.

             drug elimination grants for low-income housing

                      (including transfer of funds)

    For grants to public housing agencies and tribally designated 
housing entities for use in eliminating crime in public housing projects 
authorized by 42 U.S.C. 11901-11908, for grants for 
federally assisted low-income housing authorized by 42 U.S.C. 11909, and 
for drug information clearinghouse services authorized by 42 U.S.C. 
11921-11925, $310,000,000, to remain available until expended, of which 
$10,000,000 shall be for grants, technical assistance, contracts and 
other assistance, training, and program assessment and execution for or 
on behalf of public housing agencies, resident organizations, and Indian 
tribes and their tribally designated housing entities (including the 
cost of necessary travel for participants in such training); $10,000,000 
shall be used in connection with efforts to combat violent crime in 
public and assisted housing under the Operation Safe Home program 
administered by the Inspector General of the Department of Housing and 
Urban Development; $10,000,000 shall be provided to the Office of 
Inspector General for Operation Safe Home; and $20,000,000

[[Page 111 STAT. 1354]]

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, <<NOTE: Grants.>> 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, $550,000,000, to remain 
available until expended, of which the Secretary may use up to 
$10,000,000 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 of the amount made available under this heading, $26,000,000 shall 
be made available, including up to $10,000,000 for Heritage House in 
Kansas City, Missouri, for the demolition of obsolete elderly public 
housing projects and the replacement, where appropriate, and 
revitalization of the elderly public housing as new communities for the 
elderly designed to meet the special needs and physical requirements of 
the elderly: Provided further, 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, and 
1997, and the Omnibus Consolidated Rescissions and Appropriations Act of 
1996: 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.

[[Page 111 STAT. 1355]]

                  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), $600,000,000, to remain 
available until expended, of which $5,000,000 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, $5,000,000 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 $217,000,000: Provided further, That the funds made available 
in the first proviso 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: Provided further, That all 
balances outstanding as of September 30, 1997, previously appropriated 
under the headings ``Annual Contributions for Assisted Housing'', 
``Development of Additional New Subsidized Housing'', ``Preserving 
Existing Housing Investment'', ``HOME Investment Partnerships Program'', 
``Emergency Shelter Grants Program'', and ``Homeless Assistance Funds'', 
identified for Indian Housing Authorities and other agencies primarily 
serving Indians or Indian areas, shall be transferred to and merged with 
amounts made available under this heading.

           indian housing loan guarantee fund program account

    For the cost of guaranteed loans, as authorized by section 184 of 
the Housing and Community Development Act of 1992 (106 Stat. 3739), 
$5,000,000, 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 
$73,800,000.

            capital grants/capital loans preservation account

    At the discretion of the Secretary, to reimburse owners, nonprofits, 
and tenant groups for which plans of action were submitted with regard 
to eligible properties under the Low-Income Housing Preservation and 
Resident Homeownership Act of 1990 (LIHPRHA) or the Emergency Low Income 
Housing Preservation Act of 1987 (ELIHPA) prior to the effective date of 
this Act, but were not executed for lack of available funds, with such 
reimbursement available only for documented costs directly applicable to 
the preparation of the plan of action or any purchase agreement as 
determined

[[Page 111 STAT. 1356]]

by the Secretary, on terms and conditions to be established by the 
Secretary, $10,000,000 shall be made available.

                   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), $204,000,000, to remain available until expended: Provided, That 
of the amount made available under this heading for non-formula 
allocation, the Secretary may designate, on a noncompetitive basis, one 
or more nonprofit organizations that provide meals delivered to 
homebound persons with acquired immunodeficiency syndrome or a related 
disease to receive grants, not exceeding $250,000 for any grant, and the 
Secretary shall assess the efficacy of providing such assistance to such 
persons.

                   community development block grants

                     (including transfers of funds)

    For grants to States and units of general local government and for 
related expenses, not otherwise provided for, to carry out a community 
development grants program as authorized by title I of the Housing and 
Community Development Act of 1974, as amended (the ``Act'' herein) (42 
U.S.C. 5301), $4,675,000,000, to remain available until September 30, 
2000: Provided, That $67,000,000 shall be for grants to Indian tribes 
notwithstanding section 106(a)(1) of such Act; $2,100,000 shall be 
available as a grant to the Housing Assistance Council; $1,500,000 shall 
be available as a grant to the National American Indian Housing Council; 
$32,000,000 shall be for grants pursuant to section 107 of such Act; 
$7,500,000 shall be for the Community Outreach Partnership program; 
$16,700,000 shall be for grants pursuant to section 11 of the Housing 
Opportunity Program Extension Act of 1996 (Public Law 104-120): Provided 
further, That not to exceed 20 percent of any grant made with funds 
appropriated herein (other than a grant made available under the 
preceding proviso 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'', 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 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 $7,000,000 
shall be used for grants for service

[[Page 111 STAT. 1357]]

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 academic 
skills training, job search assistance, assistance related to retaining 
employment, vocational and entrepreneurship development and support 
programs, 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, $35,000,000 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. Local YouthBuild programs that demonstrate 
an ability to leverage private and nonprofit funding shall be given a 
priority for YouthBuild funding.
    Of the amount made available under this heading, $25,000,000 shall 
be available for the Secretary, in consultation with the Secretary of 
Agriculture, to make grants, not to exceed $4,000,000 each, for rural 
and tribal areas, including at least one Native American area in Alaska 
and one rural area in each of the States of Iowa and Missouri, to test 
comprehensive approaches to developing a job base through economic 
development, developing affordable low- and moderate-income rental and 
homeownership housing, and increasing the investment of both private and 
nonprofit capital.
    Of the amount made available under this heading, $138,000,000 shall 
be available for the Economic Development Initiative (EDI) to finance a 
variety of efforts, including $100,000,000 for making

[[Page 111 STAT. 1358]]

grants for targeted economic investments in accordance with the terms 
and conditions specified for such grants in the conference report and 
the joint explanatory statement of the committee of conference 
accompanying this Act.
    Of the amount made available under this heading, notwithstanding any 
other provision of law, $60,000,000 shall be available for the lead-
based paint hazard reduction program as authorized under sections 1011 
and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992.
    Of the amount made available under this heading, $25,000,000, 
including $15,000,000 for the County of San Bernardino, California, 
shall be used 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. 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.
    Of the $500,000,000 made available under the heading ``Community 
Development Block Grants Fund'' in the 1997 Emergency Supplemental 
Appropriations Act for Recovery from Natural Disasters, and for Overseas 
Peacekeeping Efforts, Including Those in Bosnia (Public Law 105-18), not 
more than $3,500,000 shall be made available for the non-Federal cost-
share for a levee project at Devils Lake, North Dakota: Provided, That 
the Secretary of Housing and Urban Development shall provide the State 
of North Dakota with a waiver to allow the use of its annual Community 
Development Block Grant allocation for use in funding the non-Federal 
cost-share for a levee project at Devils Lake, North Dakota: Provided 
further, That notwithstanding any other provision of law, the Secretary 
is prohibited from providing waivers, other than those provided herein, 
for funds in excess of $100,000 in emergency Community Development Block 
Grants funds for the non-Federal cost-share of projects 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.

[[Page 111 STAT. 1359]]

              empowerment zones and enterprise communities

    For planning grants, technical assistance, contracts and other 
assistance, and training in connection with Empowerment Zones and 
Enterprise Communities, designated by the Secretary of 
Housing and Urban Development, to continue efforts to stimulate economic 
opportunity in America's distressed communities, $5,000,000, to remain 
available until expended.

                  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, $1,500,000,000, to remain available 
until expended: Provided, That up to $7,000,000 shall be available for 
the development and operation of integrated community development 
management information systems: 
Provided further, That $20,000,000 shall be available for Housing 
Counseling under section 106 of the Housing and Urban Development Act of 
1968: Provided further, That up to $10,000,000 shall be available to 
carry out a demonstration program in which the Secretary makes grants to 
up to three organizations exempt from Federal taxation under section 
501(c)(3) of the Internal Revenue Code, selected on a competitive basis, 
to demonstrate methods of expanding homeownership opportunities for low-
income borrowers through expanding the secondary market for non-
conforming home mortgage loans to low-wealth borrowers: Provided 
further, That grantees for such demonstration program shall have 
experience in working with lenders who make non-conforming loans to low-
income borrowers, have experience in expanding the secondary market for 
such loans, have demonstrated success in carrying out such activities 
including raising non-Federal grants and capital on concessionary terms 
for the purpose of expanding the secondary market for loans in the 
previous two years in amounts equal to or exceeding the amount awarded 
to such organization under this paragraph, and have demonstrated the 
ability to provide data on the performance of such loans sufficient to 
allow for future analysis of the investment risk of such loans.

                       supportive housing program

                              (rescission)

    Of the funds made available under this heading in Public Law 102-389 
and prior laws for the Supportive Housing Demonstration Program, as 
authorized by the Stewart B. McKinney Homeless Assistance Act, 
$6,000,000 of funds recaptured during fiscal year 1998 shall be 
rescinded.

                            shelter plus care

                              (rescission)

    Of the funds made available under this heading in Public Law 102-389 
and prior laws for the Shelter Plus Care program, as authorized by the 
Stewart B. McKinney Homeless Assistance Act, $4,000,000 of funds 
recaptured during fiscal year 1998 shall be rescinded.

[[Page 111 STAT. 1360]]

                       homeless assistance grants

    For the emergency shelter grants program (as authorized under 
subtitle B of title IV of the Stewart B. McKinney Homeless 
Assistance Act, as amended); the supportive housing program (as 
authorized under subtitle C of title IV of such Act); the section 8 
moderate rehabilitation single room occupancy program (as authorized 
under the United States Housing Act of 1937, as amended) to assist 
homeless individuals pursuant to section 441 of the Stewart B. McKinney 
Homeless Assistance Act; and the shelter plus care program (as 
authorized under subtitle F of title IV of such Act), $823,000,000, to 
remain available until expended.

                            Housing Programs

                     housing for special populations

                     (including transfers of funds)

    For assistance for the purchase, construction, acquisition, or 
development of additional public and subsidized housing units for low-
income families under the United States Housing Act of 1937, as amended 
(42 U.S.C. 1437), not otherwise provided for, $839,000,000, to remain 
available until expended: Provided, That of the total amount provided 
under this heading, $645,000,000 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: Provided further, That all 
balances, as of September 30, 1997, remaining in either the ``Annual 
Contributions for Assisted Housing'' account or the ``Development of 
Additional New Subsidized Housing'' account for capital advances, 
including amendments to capital advances, for housing for the elderly, 
as authorized by section 202 of the Housing Act of 1959, as amended, and 
for project rental assistance,

[[Page 111 STAT. 1361]]

and amendments to contracts for project rental assistance, for 
supportive housing for the elderly, under section 202(c)(2) of such Act, 
shall be transferred to and merged with the amounts for those purposes 
under this heading; and, all balances, as of September 30, 1997, 
remaining in either the ``Annual Contributions for Assisted Housing'' 
account or the ``Development of Additional New Subsidized Housing'' 
account for capital advances, including amendments to capital advances, 
for supportive housing for persons with disabilities, as authorized by 
section 811 of the Cranston-Gonzalez National Affordable Housing Act, 
and for project rental assistance, and amendments to contracts for 
project rental assistance, for supportive housing for persons with 
disabilities, as authorized under section 811 of such Act, shall be 
transferred to and merged with the amounts for those purposes under this 
heading.

                     other assisted housing programs

                        rental housing assistance

                              (rescission)

    The limitation otherwise applicable to the maximum payments that may 
be required in any fiscal year by all contracts entered into under 
section 236 of the National Housing Act (12 U.S.C. 1715z-1) is reduced 
in fiscal year 1998 by not more than $7,350,000 in uncommitted balances 
of authorizations provided for this purpose in appropriation Acts: 
Provided, That up to $125,000,000 of recaptured budget authority shall 
be canceled.

                          flexible subsidy fund

                           (transfer of funds)

    From the Rental Housing Assistance Fund, all uncommitted balances of 
excess rental charges as of September 30, 1997, and any collections made 
during fiscal year 1998, 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 1998, 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 1998, obligations to make direct loans to carry 
out the purposes of section 204(g) of the National Housing Act, as 
amended, shall not exceed $200,000,000: 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, $338,421,000, to be derived from the FHA-mutual 
mortgage insurance guaranteed loans receipt

[[Page 111 STAT. 1362]]

account, of which not to exceed $326,309,000 shall be transferred to the 
appropriation for departmental salaries and expenses; and of which not 
to exceed $12,112,000 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 $17,400,000,000: 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(a), and 519(a) of the 
National Housing Act, shall not exceed $120,000,000; of which not to 
exceed $100,000,000 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, $222,305,000, of which 
$218,134,000, including $25,000,000 for the enforcement of housing 
standards on FHA-insured multifamily projects, shall be transferred to 
the appropriation for departmental salaries and expenses; and of which 
$4,171,000 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 1998, 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 $130,000,000,000.
    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

[[Page 111 STAT. 1363]]

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, $36,500,000, to remain 
available until September 30, 1999.
    Of the amount made available under this heading, $500,000 shall be 
made available for a contract with the National Academy of Public 
Administration to evaluate the Secretary's efforts to implement needed 
management systems and processes.

                   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, 
$30,000,000, to remain available until September 30, 1999, of which 
$15,000,000 shall be to carry out activities pursuant to such section 
561. 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.

                      Management and Administration

                          salaries and expenses

                     (including transfers of funds)

    For necessary administrative and nonadministrative 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, $1,000,826,000, of which $544,443,000 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, and $1,000,000 shall be provided from the ``Community 
Development Grants Program'' account.

                       office of inspector general

                     (including transfers of funds)

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, $66,850,000, 
of which $16,283,000 shall be provided from the various funds of the 
Federal Housing Administration and $10,000,000 shall be transferred from 
the amount earmarked for Operation

[[Page 111 STAT. 1364]]

Safe Home in the ``Drug Elimination Grants for Low-Income Housing'' 
account.

             Office of Federal Housing Enterprise Oversight

                          salaries and expenses

                      (including transfer of funds)

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

                        administrative provisions

    Sec. 201. Extenders. (a) One-For-One Replacement of 
Public Housing.--Section 1002(d) of Public Law 104-19 <<NOTE: 42 USC 
1437c note.>> is amended by striking ``1997'' and inserting ``1998''.

    (b) Streamlining Section 8 Tenant-Based Assistance.--
Section 203(d) of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 
1996, <<NOTE: 42 USC 1437f note.>> is amended by striking ``fiscal years 
1996 and 1997'' and inserting ``fiscal years 1996, 1997, and 1998''.

    (c) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the United 
States Housing Act of 1937 <<NOTE: 42 USC 1437f.>> is amended--
            (1) in the third sentence, by striking ``fiscal year 1997'' 
        and inserting ``fiscal years 1997 and 1998''; and
            (2) in the last sentence, by striking ``fiscal year 1997'' 
        and inserting ``fiscal years 1997 and 1998''.

    (d) Public and Assisted Housing Rents, Income Adjustments and 
Preferences.--
            (1) Section 402(a) of The Balanced Budget Downpayment Act, 
        I <<NOTE: 110 Stat. 40.>> is amended by striking ``fiscal year 
        1997'' and inserting ``fiscal years 1997 and 1998''.
            (2) Section 402(f) of The Balanced Budget Downpayment 
        Act, <<NOTE: 42 USC 1437a note.>> I is amended by striking 
        ``fiscal years 1996 and 1997'' and inserting ``fiscal years 
        1996, 1997, and 1998''.

    Sec. 202. Delay Reissuance of Vouchers and Certificates.--Section 
403(c) of The Balanced Budget Downpayment Act, I <<NOTE: 110 Stat. 
44.>> is amended--
            (1) by striking ``fiscal years 1996 and 1997'' and inserting 
        ``fiscal years 1996, 1997, and 1998'';
            (2) by striking ``1996 and October'' and inserting ``1996, 
        October''; and
            (3) by inserting before the semicolon the following: ``and 
        October 1, 1998 for assistance made available during fiscal year 
        1998''.

    Sec. 203. <<NOTE: Illinois.>> Waiver.--The part of the HUD 1996 
Community Development Block Grant to the State of Illinois which is 
administered by the State of Illinois Department of Commerce and 
Community Affairs (grant number B-96-DC-170001) and which, in turn,

[[Page 111 STAT. 1365]]

was granted by the Illinois Department of Commerce and Community Affairs 
to the city of Oglesby, Illinois, located in LaSalle County, Illinois 
(State of Illinois Department of Commerce and Community Affairs grant 
number 96-24104), for the purpose of providing infrastructure for a 
warehouse in Oglesby, Illinois, is exempt from the provisions of section 
104(g)(2), (g)(3), and (g)(4) of title I of the Housing and Community 
Development Act of 1974, as amended.

    Sec. 204. Financing Adjustment Factors.--Fifty percent of the 
amounts of budget authority, or in lieu thereof 50 percent of the cash 
amounts associated with such budget authority, that are recaptured from 
projects described in section 1012(a) of the Stewart B. McKinney 
Homeless Assistance Amendments Act of 1988 (Public Law 100-628; 102 
Stat. 3224, 3268) shall be rescinded, or in the case of cash, shall be 
remitted to the Treasury, and such amounts of budget authority or cash 
recaptured and not rescinded or remitted to the Treasury shall be used 
by State housing finance agencies or local governments or local housing 
agencies with projects approved by the Secretary of Housing and Urban 
Development for which settlement occurred after January 1, 1992, in 
accordance with such section. Notwithstanding the previous sentence, the 
Secretary may award up to 15 percent of the budget authority or cash 
recaptured and not rescinded or remitted to the Treasury to provide 
project owners with incentives to refinance their project at a lower 
interest rate.
    Sec. 205. Annual Adjustment Factors.--Section 8(c)(2)(A) of the 
United States Housing Act of 1937, as amended by section 201 of this 
title, is further amended by inserting the following new sentences at 
the end: ``In establishing annual adjustment factors for units in new 
construction and substantial rehabilitation projects, the Secretary 
shall take into account the fact that debt service is a fixed 
expense. <<NOTE: Effective date.>> The immediately foregoing sentence 
shall be effective only during fiscal year 1998.''.

    Sec. 206. Community Development Block Grant.--Notwithstanding any 
other provision of law, the $7,100,000 appropriated for an industrial 
park at 18th Street and Indiana Avenue shall be made available by the 
Secretary instead to 18th and Vine for rehabilitation and infrastructure 
development associated with the ``Negro Leagues Baseball Museum'' and 
the jazz museum.
    Sec. 207. Fair Housing and Free Speech.--None of the amounts made 
available under this Act may be used during fiscal year 1998 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.
    Sec. 208. Requirement for HUD To Maintain Public Notice and Comment 
Rulemaking.--Notwithstanding any other provision of law, for fiscal year 
1998 and for all fiscal years thereafter, the Secretary of Housing and 
Urban Development shall maintain all current requirements under part 10 
of the Department of Housing and Urban Development regulations (24 CFR 
part 10) with respect to the Department's policies and procedures for 
the promulgation and issuance of rules, including the use of public 
participation in the rulemaking process.

[[Page 111 STAT. 1366]]

    Sec. 209. Brownfields as Eligible CDBG Activity.--During fiscal year 
1998, 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.
    Sec. 210. Partial Payment of Claims on Health Care Facilities.--
Section 541(a) of the National Housing Act <<NOTE: 12 USC 1735f-19.>> is 

amended--
            (1) in the section heading, by adding ``and health care 
        facilities'' at the end; and
            (2) in subsection (a)--
                    (A) by inserting ``or a health care facility 
                (including a nursing home, intermediate care facility, 
                or board and care home (as those terms are defined in 
                section 232 of this Act), a hospital (as that term is 
                defined in section 242 of this Act), or a group practice 
                facility (as that term is defined in section 1106 of 
                this Act))'' after ``1978''; and
                    (B) by inserting ``or for keeping the health care 
                facility operational to serve community needs,'' after 
                ``character of the project,''.

    Sec. 211. Calculation of Downpayment.--Section 203(b) of the 
National Housing Act <<NOTE: 12 USC 1709.>> is amended by striking 
``fiscal year 1997'' in paragraph (10)(A) and inserting ``fiscal years 
1997 and 1998''.

    Sec. 212. HOPE VI NOFA.--Notwithstanding any other provision of law, 
including the July 22, 1996 Notice of Funding Availability (61 Fed. Reg. 
38024), the demolition of units at developments funded under the Notice 
of Funding Availability shall be at the option of the New York City 
Housing Authority and the assistance awarded shall be allocated by the 
public housing agency among other eligible activities under the HOPE VI 
program and without the development costs limitations of the Notice, 
provided that the public housing agency shall not exceed the total cost 
limitations for the public housing agency, as provided by the Department 
of Housing and Urban Development.
    Sec. 213. Enhanced Disposition Authority.--Section 204 of the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997, <<NOTE: 12 USC 1715z-
11a.>> is amended by inserting after ``owned by the Secretary'' the 
following: ``, including, for fiscal years 1997 and 1998, the provision 
of grants and loans from the General Insurance Fund (12 U.S.C. 1735c) 
for the necessary costs of rehabilitation or demolition,''.

    Sec. 214. Home Program Formula.--The first sentence of section 
217(b)(3) of the Cranston-Gonzalez National Affordable Housing 
Act <<NOTE: 42 USC 12747.>> is amended by striking ``only those 
jurisdictions that are allocated an amount of $500,000 or greater shall 
receive an allocation'' and inserting the following: ``jurisdictions 
that are allocated an amount of $500,000 or more, and participating 
jurisdictions (other than consortia that fail to renew the membership of 
all of their member jurisdictions) that are allocated an amount less 
than $500,000, shall receive an allocation''.

    Sec. 215. HUD Rent Reform.--Notwithstanding any other provision of 
law, the Secretary of Housing and Urban Development may provide tenant-
based assistance to eligible tenants of a project

[[Page 111 STAT. 1367]]

insured under either section 221(d)(3) or 236 of the National Housing 
Act in the same manner as if the owner had prepaid the insured mortgage 
to the extent necessary to minimize any rent increases or to prevent 
displacement of low-income tenants in accordance with a transaction 
approved by the Secretary provided that the rents are no higher than the 
published section 8 fair market rents, as of the date of enactment, 
during the tenants' occupancy of the property.
    Sec. 216. Nursing Home Lease Terms.--Section 232(b)(4)(B) of the 
National Housing Act <<NOTE: 12 USC 1715w.>> is amended by striking 
``fifty years from the date the mortgage was executed'' and inserting 
``ten years to run beyond the maturity date of the mortgage''.

    Sec. 217. Housing Opportunities for Persons With AIDS Grants. (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 1998 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 for fiscal year 1997 under clause 
        (ii) of such section;
            (2) is not otherwise eligible for an allocation for fiscal 
        year 1998 under such clause (ii) because the State does not have 
        the number of cases of acquired immunodeficiency syndrome 
        required under such clause; and
            (3) would meet such requirement if the cases in the 
        metropolitan statistical area for any city within the State, 
        which city was not eligible for an allocation for fiscal year 
        1997 under clause (i) of such section but is eligible for an 
        allocation for fiscal year 1998 under such clause, were 
        considered to be cases outside of metropolitan statistical areas 
        described in clause (i) of such section.

    (b) Amount.--The amount of the allocation and grant for any State 
described in subsection (a) shall be the amount that is equal to the 
lesser of--
            (1) the difference between--
                    (A) the total amount allocated for such State under 
                section 854(c)(1)(A)(ii) of the AIDS Housing Opportunity 
                Act for fiscal year 1997; and
                    (B) the total amount allocated for the city 
                described in subsection (a)(3) of this section under 
                section 854(c)(1)(A)(i) of such Act for fiscal year 1998 
                (from amounts made available under this title); and
            (2) $300,000.

    Sec. 218. Debt Forgiveness.--The Secretary of Housing and Urban 
Development shall cancel the indebtedness of the Village of Robbins, 
Illinois, relating to loans under the Reconstruction Finance Corporation 
and refinanced under the Public Facility Loan program (loan numbers ILL-
11-RFC-0029 and ILL-11-PFL0111). The Village is hereby relieved of all 
liability to the Federal Government for the outstanding principal 
balance on such loans, for the amount of accrued interest on such loans, 
and for any fees and charges payable in connection with such loans.

[[Page 111 STAT. 1368]]

                     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; $26,897,000, to remain available 
until expended: Provided, <<NOTE: 36 USC 121b.>> That where station 
allowance has been authorized by the Department of the Army for officers 
of the Army serving the Army at certain foreign stations, the same 
allowance shall be authorized for officers of the Armed Forces assigned 
to the Commission while serving at the same foreign stations, and this 
appropriation is hereby made available for the payment of such 
allowance: Provided further, <<NOTE: 36 USC 122.>> That when traveling 
on business of the Commission, officers of the Armed Forces serving as 
members or as Secretary of the Commission may be reimbursed for expenses 
as provided for civilian members of the Commission: Provided 
further, <<NOTE: 36 USC 122a.>> That the Commission shall reimburse 
other Government agencies, including the Armed Forces, for salary, pay, 
and allowances of personnel assigned to it.

             Chemical Safety and Hazard Investigation Board

                          salaries and expenses

    For necessary expenses in carrying out activities pursuant to 
section 112(r)(6) of the Clean Air Act, including hire of passenger 
vehicles, and for services authorized by 5 U.S.C. 3109, but at rates for 
individuals not to exceed the per diem equivalent to the maximum rate 
payable for senior level positions under 5 U.S.C. 5376, $4,000,000.

                       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, 1999, 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

[[Page 111 STAT. 1369]]

$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, $45,000,000.

             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, 1999: Provided, 
That not more than $27,000,000 shall be available for administrative 
expenses authorized under section 501(a)(4) of the Act (42 U.S.C. 
12671(a)(4)): 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

[[Page 111 STAT. 1370]]

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 $30,000,000 shall 
be available for quality and innovation activities authorized under 
subtitle H of title I of the Act (42 U.S.C. 12853 et seq.): Provided 
further, That not more than $5,000,000 shall be available for audits and 
other evaluations authorized under section 179 of the Act (42 U.S.C. 
12639): Provided further, That to the maximum extent practicable, the 
Corporation shall increase significantly the level of matching funds and 
in-kind contributions provided by the private sector, shall expand 
significantly the number of educational awards provided under subtitle D 
of title I, and shall reduce the total Federal costs per participant in 
all programs.

                       office of inspector general

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

                        Court of Veterans Appeals

                          salaries and expenses

    For necessary expenses for the operation of the United States Court 
of Veterans Appeals as authorized by 38 U.S.C. 7251-7298, $9,319,000, of 
which $790,000, 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 two 
passenger motor vehicles for replacement only, and not to exceed $1,000 
for official reception and representation expenses, $11,815,000, 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,

[[Page 111 STAT. 1371]]

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 rate for GS-18; 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, $631,000,000, which shall remain available until September 30, 
1999: Provided, That $49,600,000 of the funds appropriated under this 
heading shall be to conduct and administer a comprehensive, peer-
reviewed, near- and long-term particulate matter research program in 
accordance with the terms and conditions set forth for such research 
program in the conference report and joint explanatory statement of the 
committee of conference accompanying this Act (H.R. 2158): Provided 
further, <<NOTE: Contracts.>> That no later than 30 days following 
enactment of this Act, the Environmental Protection Agency shall enter 
into a contract or cooperative agreement with the National Academy of 
Sciences to develop a comprehensive, prioritized, near- and long-term 
particulate matter research program and monitoring plan in accordance 
with the terms and conditions set forth in the conference report and 
joint explanatory statement of the committee of conference accompanying 
this Act (H.R. 2158).

                  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 rate for GS-18; hire of passenger motor vehicles; 
hire, maintenance, and operation of aircraft; purchase of reprints; 
library memberships in societies or associations which issue 
publications to members only or at a price to members lower than to 
subscribers who are not members; construction, alteration, repair, 
rehabilitation, and renovation of facilities, not to exceed $75,000 per 
project; and not to exceed $6,000 for official reception and 
representation expenses, $1,801,000,000, which shall remain available 
until September 30, 1999.

                       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, 
$28,501,000, to remain available until September 30, 1999.

                        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, $109,420,000, to remain available until 
expended: Provided, That the Environmental Protection Agency is 
authorized to establish and construct a consolidated research facility 
at Research Triangle Park, North Carolina, at

[[Page 111 STAT. 1372]]

a maximum total construction cost of $272,700,000, and to obligate such 
monies as are made available by this Act for this purpose.

                      hazardous substance superfund

                      (including transfer 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 $2,150,000,000 (of which $100,000,000 shall not become available 
until September 1, 1998), to remain available until expended, consisting 
of $1,900,000,000, as authorized by section 517(a) of the Superfund 
Amendments and Reauthorization Act of 1986 (SARA), as amended by Public 
Law 101-508, and $250,000,000 as a payment from general revenues to the 
Hazardous Substance Superfund 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 of the 
funds appropriated under this heading, $650,000,000 shall not become 
available for obligation until October 1, 1998, and, further, shall be 
available for obligation only upon enactment by May 15, 1998, of 
specific legislation which reauthorizes the Superfund program: Provided 
further, That $11,641,000 of the funds appropriated under this heading 
shall be transferred to the ``Office of Inspector General'' 
appropriation to remain 
available until September 30, 1999: Provided further, That 
notwithstanding section 111(m) of CERCLA or any other provision of law, 
$74,000,000 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 
$35,000,000 of the funds appropriated under this heading shall be 
transferred to the ``Science and Technology'' appropriation to remain 
available until September 30, 1999: Provided further, That none of the 
funds appropriated under this heading shall be used for Brownfields 
revolving loan funds unless specifically authorized by subsequent 
legislation: 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 1998.

                leaking underground storage tank program

                      (including transfer of funds)

    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 construction, alteration, 
repair, rehabilitation, and renovation of facilities, not to exceed 
$75,000 per project, $65,000,000, to remain available until expended: 
Provided, That no more than $7,500,000 shall be available for 
administrative expenses.

[[Page 111 STAT. 1373]]

                           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: Provided, That not more than 
$9,000,000 of these funds shall be available for administrative 
expenses.

                   state and tribal assistance grants

    For environmental programs and infrastructure assistance, including 
capitalization grants for State revolving funds and performance 
partnership grants, $3,213,125,000, 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 $725,000,000 shall be for capitalization grants for the 
Drinking Water State Revolving Funds under section 1452 of the Safe 
Drinking Water Act, as amended; $75,000,000 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; $50,000,000 for 
grants to the State of Texas which shall be matched by State funds from 
State resources at 20 percent of the Federal appropriation for the 
purpose of improving water and wastewater treatment for colonias; 
$15,000,000 for grants to the State of Alaska to address drinking water 
and wastewater infrastructure needs of rural and Alaska Native Villages 
as provided by section 303 of Public Law 104-182; $253,125,000 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 conference 
report and joint explanatory statement of the committee of conference 
accompanying this Act (H.R. 2158); <<NOTE: 33 USC 1281 note.>> and 
$745,000,000 for grants to States, federally recognized tribes, and air 
pollution control agencies for multi-media or single media pollution 
prevention, control and abatement and related activities pursuant to the 
provisions set forth under this heading in Public Law 104-134, provided 
that eligible recipients of these funds and the funds made available for 
this purpose since fiscal year 1996 and hereafter include States, 
federally recognized tribes, interstate agencies, tribal consortia, and 
air pollution control agencies, as provided in authorizing statutes, 
subject to such terms and conditions as the Administrator shall 
establish, and for making grants under section 103 of the Clean Air Act 
for particulate matter monitoring and data collection activities: 
Provided, That, consistent with section 1452(g) of the Safe Drinking 
Water Act (42 U.S.C. 300j-12(g)), section 302 of the Safe Drinking Water 
Act Amendments of 1996 (Public Law 104-182) and the accompanying joint 
explanatory statement of the committee on 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, States may 
combine the assets of State Revolving Funds (SRFs) established under 
section 1452 of the Safe Drinking Water Act, as amended, and title

[[Page 111 STAT. 1374]]

VI of the Federal Water Pollution Control Act, as amended, as security 
for bond issues to enhance the lending capacity of one or both SRFs, but 
not to acquire the State match for either program, provided that 
revenues from the bonds are allocated to the purposes of the Safe 
Drinking Water Act and the Federal Water Pollution Control Act in the 
same portion as the funds are used as security for the bonds: Provided 
further, <<NOTE: 33 USC 1281 note.>> That, hereafter from funds 
appropriated under this heading, the Administrator is authorized to make 
grants to federally recognized Indian governments for the development of 
multi-media environmental programs: Provided further, That, hereafter, 
the funds available under this heading for grants to States, federally 
recognized tribes, and air pollution control agencies for multi-media or 
single media pollution prevention, control and abatement and related 
activities may also be used for the direct implementation by the Federal 
Government of a program required by law in the absence of an acceptable 
State or tribal program: Provided further, That notwithstanding any 
other provision of law, in the case of a publicly owned treatment works 
in the District of Columbia, the Federal share of grants awarded under 
title II of the Federal Water Pollution Control Act, beginning October 
1, 1997, and continuing through September 30, 1999, shall be 80 percent 
of the cost of construction, and all grants made to such publicly owned 
treatment works in the District of Columbia may include an advance of 
allowance under section 201(l)(2): Provided further, That, 
notwithstanding any other provision of law, the Administrator is 
authorized to make a grant of $4,326,000 under title II of the Federal 
Water Pollution Control Act, as 
amended, from funds appropriated in prior years under section 205 of the 
Act for the State of Florida and available due to deobligation, to the 
appropriate instrumentality for wastewater treatment works in Monroe 
County, Florida.

                          working capital fund

    Under this heading in Public Law 104-204, <<NOTE: 31 USC 501 
note.>> delete the following: the phrases ``franchise fund pilot to be 
known as the''; ``as authorized by section 403 of Public Law 103-356,''; 
and ``as provided in such section''; and the final proviso. After the 
phrase ``to be available'', insert ``without fiscal year limitation''.

                    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, $4,932,000.

  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,

[[Page 111 STAT. 1375]]

the Environmental Quality Improvement Act of 1970, and Reorganization 
Plan No. 1 of 1977, $2,500,000: 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.

                           unanticipated needs

    For expenses necessary to enable the President to meet unanticipated 
needs, in furtherance of the national interest, security, or defense 
which may arise at home or abroad during the current fiscal year, 
$1,000,000.

                  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, $34,365,000, 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.), 
$320,000,000, and, notwithstanding 42 U.S.C. 5203, to remain available 
until expended.

             disaster assistance direct loan program account

    For the cost of direct loans, $1,495,000, 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, $341,000.

                          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 rate for GS-18; 
expenses of attendance of cooperating officials and

[[Page 111 STAT. 1376]]

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, $171,773,000.

                       office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, $4,803,000.

              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, $243,546,000: 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), $30,000,000 of the funds made available under this heading 
shall be available until expended for project grants: Provided 
further, <<NOTE: Grants. Mississippi.>> That the Director of the Federal 
Emergency Management Agency shall make a grant for $1,500,000 to resolve 
issues under the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, Public Law 91-646, involving the City 
of Jackson, Mississippi.

                   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, and the National Flood Insurance 
Reform Act of 1994, not to exceed $21,610,000 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, 1999. In fiscal year 1998, no funds 
in excess of: (1) $47,000,000 for operating expenses; (2) $375,165,000 
for agents' commissions and taxes; and (3) $50,000,000 for interest on 
Treasury borrowings shall be available from the National Flood Insurance 
Fund without

[[Page 111 STAT. 1377]]

prior notice to the Committees on Appropriations. For fiscal year 1998, 
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 ``1997'' and inserting ``1998''.
    Section 1319 of the National Flood Insurance Act of 1968, as amended 
(42 U.S.C. 4026), is amended by striking ``October 23, 1997'' and 
inserting ``September 30, 1998''.
    Section 1336 of the National Flood Insurance Act of 1968, as amended 
(42 U.S.C. 4056), is amended by striking ``October 23, 1997'' and 
inserting ``September 30, 1998''.
    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 all after ``to be appropriated'' and inserting ``such sums as 
may be necessary through September 30, 1998, for studies under this 
title.''.

                        administrative provision

    The <<NOTE: Regulations.>> Director of the Federal Emergency 
Management Agency shall promulgate through rulemaking a methodology for 
assessment and collection of fees to be assessed and collected beginning 
in fiscal year 1998 applicable to persons subject to the Federal 
Emergency Management Agency's radiological emergency preparedness 
regulations. The aggregate charges assessed pursuant to this section 
during fiscal year 1998 shall approximate, but not be less than, 100 
percent of the amounts anticipated by the Federal Emergency Management 
Agency to be obligated 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 the 
full amount of costs of providing radiological emergency planning, 
preparedness, response and associated services. Such fees shall be 
assessed in a manner that reflects the use of agency resources for 
classes of regulated persons and the administrative costs of collecting 
such fees. Fees received pursuant to this section shall be deposited in 
the general fund of the Treasury as offsetting receipts. Assessment and 
collection of such fees are only authorized during fiscal year 1998.

                     General Services Administration

                    consumer information center fund

    For necessary expenses of the Consumer Information Center, including 
services authorized by 5 U.S.C. 3109, $2,419,000, 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 1998 in excess of 
$7,500,000 shall remain in the fund and shall not be available for 
expenditure except as authorized in appropriations Acts: Provided 
further, <<NOTE: 40 USC 761a.>> That notwithstanding any other provision 
of law, the Consumer Information Center may accept and deposit to this 
account, during fiscal year 1998 and hereafter, gifts for the purpose of 
defraying its costs of printing, publishing, and distributing consumer 
information and educational materials

[[Page 111 STAT. 1378]]

and undertaking other consumer information activities; may expend those 
gifts for those purposes, in addition to amounts appropriated or 
otherwise made available; and the balance shall remain available for 
expenditure for such purpose.

              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, $5,506,500,000, to 
remain available until September 30, 1999: Provided, That of the 
$2,351,300,000 made available under this heading for Space Station 
activities, only $1,500,000,000 shall be available before March 31, 
1998.

                   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, $5,690,000,000, to remain available until September 30, 1999.

                             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; $2,433,200,000, to remain available until 
September 30, 1999.

[[Page 111 STAT. 1379]]

                       office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, $18,300,000.

                        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, 2000.
    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, 1998 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.
    Of <<NOTE: Reports.>> the funds provided to the National Aeronautics 
and Space Administration in this Act, the Administrator shall by 
November 1, 1998, make available no less than $400,000 for a study by 
the National Research Council, with an interim report to be completed by 
June 1, 1998, that evaluates, in terms of the potential impact on the 
Space Station's assembly schedule, budget, and capabilities, the 
engineering challenges posed by extravehicular activity (EVA) 
requirements, United States and non-United States space launch 
requirements, the potential need to upgrade or replace equipment and 
components after assembly complete, and the requirement to decommission 
and disassemble the facility.

                  National Credit Union Administration

                       central liquidity facility

    During fiscal year 1998, 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 1998 shall not exceed $203,000: Provided further, That $1,000,000, 
together with amounts of principal and interest on loans repaid, to be 
available until expended, is available for loans to community 
development credit unions.

[[Page 111 STAT. 1380]]

                       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; $2,545,700,000, of which not to exceed $228,530,000 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, 1999: 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 $40,000,000 of the funds available under this 
heading shall be made available for a comprehensive research initiative 
on plant genomes for economically significant crops.

                        major research equipment

    For necessary expenses of major construction projects pursuant to 
the National Science Foundation Act of 1950, as amended, $109,000,000, 
to remain available until expended, of which $35,000,000 shall become 
available on September 30, 1998.

                      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, $632,500,000, to remain 
available until September 30, 1999: 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.

                          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 and 
headquarters relocation; $136,950,000: Provided, That contracts may be 
entered into under

[[Page 111 STAT. 1381]]

``Salaries and expenses'' in fiscal year 1998 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, $4,850,000, 
to remain available until September 30, 1999.

                  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), $60,000,000.

                        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; $23,413,000: Provided, 
That during the current fiscal year, the President may exempt this 
appropriation from the provisions of 31 U.S.C. 1341, whenever he deems 
such action to be necessary in the interest of national defense: 
Provided further, That none of the funds appropriated by this Act may be 
expended for or in connection with the induction of any person into the 
Armed Forces of the United States.

                      TITLE IV--GENERAL PROVISIONS

    Sec. 401. Where appropriations in titles I, II, and III of this Act 
are expendable for travel expenses and no specific limitation has been 
placed thereon, the expenditures for such travel expenses may not exceed 
the amounts set forth therefore in the budget estimates submitted for 
the appropriations: Provided, That this provision does not apply to 
accounts that do not contain an object classification for travel: 
Provided further, That this section shall not apply to travel performed 
by uncompensated officials of local boards and appeal boards of the 
Selective Service System; to travel performed directly in connection 
with care and treatment of medical beneficiaries of the Department of 
Veterans Affairs; to travel performed in connection with major disasters 
or emergencies declared or determined by the President under the 
provisions of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act; to travel performed by the Offices of Inspector General 
in connection with audits and investigations; or to payments to 
interagency motor pools where separately set forth in the budget 
schedules: Provided further, That if appropriations in titles I, II, and 
III exceed the amounts set forth in budget estimates initially submitted 
for such appropriations, the expenditures for travel may correspondingly

[[Page 111 STAT. 1382]]

exceed the amounts therefore set forth in the estimates in the same 
proportion.
    Sec. 402. Appropriations and funds available for the administrative 
expenses of the Department of Housing and Urban 
Development and the Selective Service System shall be available in the 
current fiscal year for purchase of uniforms, or allowances therefor, as 
authorized by 5 U.S.C. 5901-5902; hire of passenger motor vehicles; and 
services as authorized by 5 U.S.C. 3109.
    Sec. 403. Funds of the Department of Housing and Urban Development 
subject to the Government Corporation Control Act or section 402 of the 
Housing Act of 1950 shall be available, without regard to the 
limitations on administrative expenses, for legal services on a contract 
or fee basis, and for utilizing and making payment for services and 
facilities of Federal National Mortgage Association, Government National 
Mortgage Association, Federal Home Loan Mortgage Corporation, Federal 
Financing Bank, Federal Reserve banks or any member thereof, Federal 
Home Loan banks, and any insured bank within the meaning of the Federal 
Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811-1831).
    Sec. 404. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    Sec. 405. No funds appropriated by this Act may be expended--
            (1) pursuant to a certification of an officer or employee of 
        the United States unless--
                    (A) such certification is accompanied by, or is part 
                of, a voucher or abstract which describes the payee or 
                payees and the items or services for which such 
                expenditure is being made; or
                    (B) the expenditure of funds pursuant to such 
                certification, and without such a voucher or abstract, 
                is specifically authorized by law; and
            (2) unless such expenditure is subject to audit by the 
        General Accounting Office or is specifically exempt by law from 
        such audit.

    Sec. 406. None of the funds provided in this Act to any department 
or agency may be expended for the transportation of any officer or 
employee of such department or agency between his domicile and his 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

[[Page 111 STAT. 1383]]

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 24 
months prior to the date on which the list is made available to the 
public and of all contracts on which performance has not been completed 
by such date. The list required by the preceding sentence shall be 
updated quarterly and shall include a narrative description of the work 
to be performed under each such contract.

    Sec. 411. Except as otherwise provided by law, no part of any 
appropriation contained in this Act shall be obligated or expended by 
any executive agency, as referred to in the Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for 
services unless such executive agency: (1) has awarded and entered into 
such contract in full compliance with such Act and the regulations 
promulgated thereunder; and (2) requires any report prepared pursuant to 
such contract, including plans, evaluations, studies, analyses and 
manuals, and any report prepared by the agency which is substantially 
derived from or substantially includes any report prepared pursuant to 
such contract, to contain information concerning: (A) the contract 
pursuant to which the report was prepared; and (B) the contractor who 
prepared the report pursuant to such contract.
    Sec. 412. Except as otherwise provided in section 406, none of the 
funds provided in this Act to any department or agency shall be 
obligated or expended to provide a personal cook, chauffeur, or other 
personal servants to any officer or employee of such department or 
agency.
    Sec. 413. None of the funds provided in this Act to any department 
or agency shall be obligated or expended to procure passenger 
automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles per 
gallon average of less than 22 miles per gallon.
    Sec. 414. <<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

[[Page 111 STAT. 1384]]

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 1998 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 1998 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 1998 and prior 
fiscal years may be used for implementing comprehensive conservation and 
management plans.
    Sec. 421. <<NOTE: Termination.>> Such funds as may be necessary to 
carry out the orderly termination of the Office of Consumer Affairs 
shall be made available from funds appropriated to the Department of 
Health and Human Services for fiscal year 1998.

    Sec. 422. 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.

  TITLE V--HUD MULTIFAMILY HOUSING REFORM <<NOTE: Multifamily Assisted 
Housing Reform and Affordability Act of 1997.>> 

SEC. 501. TABLE OF CONTENTS.

    The table of contents for this title is as follows:

                 TITLE V--HUD MULTIFAMILY HOUSING REFORM

Sec. 510. Short title.

    Subtitle A--FHA-Insured Multifamily Housing Mortgage and Housing 
                        Assistance Restructuring

Sec. 511. Findings and purposes.
Sec. 512. Definitions.
Sec. 513. Authority of participating administrative entities.

[[Page 111 STAT. 1385]]

Sec. 514. Mortgage restructuring and rental assistance sufficiency plan.
Sec. 515. Section 8 renewals and long-term affordability commitment by 
           owner of project.
Sec. 516. Prohibition on restructuring.
Sec. 517. Restructuring tools.
Sec. 518. Management standards.
Sec. 519. Monitoring of compliance.
Sec. 520. Reports to Congress.
Sec. 521. GAO audit and review.
Sec. 522. Regulations.
Sec. 523. Technical and conforming amendments.
Sec. 524. Section 8 contract renewals.

                  Subtitle B--Miscellaneous Provisions

Sec. 531. Rehabilitation grants for certain insured projects.
Sec. 532. GAO report on section 8 rental assistance for multifamily 
           housing projects.

                   Subtitle C--Enforcement Provisions

Sec. 541. Implementation.
Sec. 542. Income verification.
            part 1--fha single family and multifamily housing

Sec. 551. Authorization to immediately suspend mortgagees.
Sec. 552. Extension of equity skimming to other single family and 
           multifamily housing programs.
Sec. 553. Civil money penalties against mortgagees, lenders, and other 
           participants in FHA programs.
                   part 2--fha multifamily provisions

Sec. 561. Civil money penalties against general partners, officers, 
           directors, and certain managing agents of multifamily 
           projects.
Sec. 562. Civil money penalties for noncompliance with section 8 HAP 
           contracts.
Sec. 563. Extension of double damages remedy.
Sec. 564. Obstruction of Federal audits.

   Subtitle D--Office of Multifamily Housing Assistance Restructuring

Sec. 571. Establishment of Office of Multifamily Housing Assistance 
           Restructuring.
Sec. 572. Director.
Sec. 573. Duty and authority of Director.
Sec. 574. Personnel.
Sec. 575. Budget and financial reports.
Sec. 576. Limitation on subsequent employment.
Sec. 577. Audits by GAO.
Sec. 578. Suspension of program because of failure to appoint Director.
Sec. 579. Termination.

SEC. 510. SHORT TITLE. <<NOTE: 12 USC 1701 note.>> 

    This title may be cited as the ``Multifamily Assisted Housing Reform 
and Affordability Act of 1997''.

    Subtitle A--FHA-Insured Multifamily Housing Mortgage and Housing 
                        Assistance Restructuring

SEC. 511. FINDINGS AND PURPOSES. <<NOTE: 42 USC 1437f note.>> 

    (a) Findings.--Congress finds that--
            (1) there exists throughout the Nation a need for decent, 
        safe, and affordable housing;
            (2) as of the date of enactment of this Act, it is estimated 
        that--
                    (A) the insured multifamily housing portfolio of the 
                Federal Housing Administration consists of 14,000 rental 
                properties, with an aggregate unpaid principal mortgage 
                balance of $38,000,000,000; and
                    (B) approximately 10,000 of these properties contain 
                housing units that are assisted with project-based 
                rental

[[Page 111 STAT. 1386]]

                assistance under section 8 of the United States Housing 
                Act of 1937;
            (3) FHA-insured multifamily rental properties are a major 
        Federal investment, providing affordable rental housing to an 
        estimated 2,000,000 low- and very low-income families;
            (4) approximately 1,600,000 of these families live in 
        dwelling units that are assisted with project-based rental 
        assistance under section 8 of the United States Housing Act of 
        1937;
            (5) a substantial number of housing units receiving project-
        based assistance have rents that are higher than the rents of 
        comparable, unassisted rental units in the same housing rental 
        market;
            (6) many of the contracts for project-based assistance will 
        expire during the several years following the date of enactment 
        of this Act;
            (7) it is estimated that--
                    (A) if no changes in the terms and conditions of the 
                contracts for project-based assistance are made before 
                fiscal year 2000, the cost of renewing all expiring 
                rental assistance contracts under section 8 of the 
                United States Housing Act of 1937 for both project-based 
                and tenant-based rental assistance will increase from 
                approximately $3,600,000,000 in fiscal year 1997 to over 
                $14,300,000,000 by fiscal year 2000 and some 
                $22,400,000,000 in fiscal year 2006;
                    (B) of those renewal amounts, the cost of renewing 
                project-based assistance will increase from 
                $1,200,000,000 in fiscal year 1997 to almost 
                $7,400,000,000 by fiscal year 2006; and
                    (C) without changes in the manner in which project-
                based rental assistance is provided, renewals of 
                expiring contracts for project-based rental assistance 
                will require an increasingly larger portion of the 
                discretionary budget authority of the Department of 
                Housing and Urban Development in each subsequent fiscal 
                year for the foreseeable future;
            (8) absent new budget authority for the renewal of expiring 
        rental contracts for project-based assistance, many of the FHA-
        insured multifamily housing projects that are assisted with 
        project-based assistance are likely to default on their FHA-
        insured mortgage payments, resulting in substantial claims to 
        the FHA General Insurance Fund and Special Risk Insurance Fund;
            (9) more than 15 percent of federally assisted multifamily 
        housing projects are physically or financially distressed, 
        including a number which suffer from mismanagement;
            (10) due to Federal budget constraints, the downsizing of 
        the Department of Housing and Urban Development, and diminished 
        administrative capacity, the Department lacks the ability to 
        ensure the continued economic and physical well-being of the 
        stock of federally insured and assisted multifamily housing 
        projects;
            (11) the economic, physical, and management problems facing 
        the stock of federally insured and assisted multifamily housing 
        projects will be best served by reforms that--
                    (A) reduce the cost of Federal rental assistance, 
                including project-based assistance, to these projects by 
                reducing the debt service and operating costs of these 
                projects while

[[Page 111 STAT. 1387]]

                retaining the low-income affordability and availability 
                of this housing;
                    (B) address physical and economic distress of this 
                housing and the failure of some project managers and 
                owners of projects to comply with management and 
                ownership rules and requirements; and
                    (C) transfer and share many of the loan and contract 
                administration functions and responsibilities of the 
                Secretary to and with capable State, local, and other 
                entities; and
            (12) the authority and duties of the Secretary, not 
        including the control by the Secretary of applicable accounts in 
        the Treasury of the United States, may be delegated to State, 
        local or other entities at the discretion of the Secretary, to 
        the extent the Secretary determines, and for the purpose of 
        carrying out this Act, so that the Secretary has the discretion 
        to be relieved of processing and approving any document or 
        action required by these reforms.

    (b) Purposes.--Consistent with the purposes and requirements of the 
Government Performance and Results Act of 1993, the purposes of this 
subtitle are--
            (1) to preserve low-income rental housing affordability and 
        availability while reducing the long-term costs of project-based 
        assistance;
            (2) to reform the design and operation of Federal rental 
        housing assistance programs, administered by the Secretary, to 
        promote greater multifamily housing project operating and cost 
        efficiencies;
            (3) to encourage owners of eligible multifamily housing 
        projects to restructure their FHA-insured mortgages and project-
        based assistance contracts in a manner that is consistent with 
        this subtitle before the year in which the contract expires;
            (4) to reduce the cost of insurance claims under the 
        National Housing Act related to mortgages insured by the 
        Secretary and used to finance eligible multifamily housing 
        projects;
            (5) to streamline and improve federally insured and assisted 
        multifamily housing project oversight and administration;
            (6) to resolve the problems affecting financially and 
        physically troubled federally insured and assisted multifamily 
        housing projects through cooperation with residents, owners, 
        State and local governments, and other interested entities and 
        individuals;
            (7) to protect the interest of project owners and managers, 
        because they are partners of the Federal Government in meeting 
        the affordable housing needs of the Nation through the section 8 
        rental housing assistance program;
            (8) to protect the interest of tenants residing in the 
        multifamily housing projects at the time of the restructuring 
        for the housing; and
            (9) to grant additional enforcement tools to use against 
        those who violate agreements and program requirements, in order 
        to ensure that the public interest is safeguarded and that 
        Federal multifamily housing programs serve their intended 
        purposes.

[[Page 111 STAT. 1388]]

SEC. 512. DEFINITIONS. <<NOTE: 42 USC 1437f note.>> 

    In this subtitle:
            (1) Comparable properties.--The term ``comparable 
        properties'' means properties in the same market areas, where 
        practicable, that--
                    (A) are similar to the eligible multifamily housing 
                project as to neighborhood (including risk of crime), 
                type of location, access, street appeal, age, property 
                size, apartment mix, physical configuration, property 
                and unit amenities, utilities, and other relevant 
                characteristics; and
                    (B) are not receiving project-based assistance.
            (2) Eligible multifamily housing project.--The term 
        ``eligible multifamily housing project'' means a property 
        consisting of more than 4 dwelling units--
                    (A) with rents that, on an average per unit or per 
                room basis, exceed the rent of comparable properties in 
                the same market area, determined in accordance with 
                guidelines established by the Secretary;
                    (B) that is covered in whole or in part by a 
                contract for project-based assistance under--
                          (i) the new construction or substantial 
                      rehabilitation program under section 8(b)(2) of 
                      the United States Housing Act of 1937 (as in 
                      effect before October 1, 1983);
                          (ii) the property disposition program under 
                      section 8(b) of the United States Housing Act of 
                      1937;
                          (iii) the moderate rehabilitation program 
                      under section 8(e)(2) of the United States Housing 
                      Act of 1937;
                          (iv) the loan management assistance program 
                      under section 8 of the United States Housing Act 
                      of 1937;
                          (v) section 23 of the United States Housing 
                      Act of 1937 (as in effect before January 1, 1975);
                          (vi) the rent supplement program under section 
                      101 of the Housing and Urban Development Act of 
                      1965; or
                          (vii) section 8 of the United States Housing 
                      Act of 1937, following conversion from assistance 
                      under section 101 of the Housing and Urban 
                      Development Act of 1965; and
                    (C) financed by a mortgage insured or held by the 
                Secretary under the National Housing Act.
            (3) Expiring contract.--The term ``expiring contract'' means 
        a project-based assistance contract attached to an eligible 
        multifamily housing project which, under the terms of the 
        contract, will expire.
            (4) Expiration date.--The term ``expiration date'' means the 
        date on which an expiring contract expires.
            (5) Fair market rent.--The term ``fair market rent'' means 
        the fair market rental established under section 8(c) of the 
        United States Housing Act of 1937.
            (6) Low-income families.--The term ``low-income families'' 
        has the same meaning as provided under section 3(b)(2) of the 
        United States Housing Act of 1937.
            (7) Mortgage restructuring and rental assistance sufficiency 
        plan.--The term ``mortgage restructuring and

[[Page 111 STAT. 1389]]

        rental assistance sufficiency plan'' means the plan as provided 
        under section 514.
            (8) Nonprofit organization.--The term ``nonprofit 
        organization'' means any private nonprofit organization that--
                    (A) is organized under State or local laws;
                    (B) has no part of its net earnings inuring to the 
                benefit of any member, founder, contributor, or 
                individual; and
                    (C) has a long-term record of service in providing 
                or financing quality affordable housing for low-income 
                families through relationships with public entities.
            (9) Portfolio restructuring agreement.--The term ``portfolio 
        restructuring agreement'' means the agreement entered into 
        between the Secretary and a participating administrative entity, 
        as provided under section 513.
            (10) Participating administrative entity.--The term 
        ``participating administrative entity'' means a public agency 
        (including a State housing finance agency or a local housing 
        agency), a nonprofit organization, or any other entity 
        (including a law firm or an accounting firm) or a combination of 
        such entities, that meets the requirements under section 513(b).
            (11) Project-based assistance.--The term ``project-based 
        assistance'' means rental assistance described in paragraph 
        (2)(B) of this section that is attached to a multifamily housing 
        project.
            (12) Renewal.--The term ``renewal'' means the replacement of 
        an expiring Federal rental contract with a new contract under 
        section 8 of the United States Housing Act of 1937, consistent 
        with the requirements of this subtitle.
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (14) State.--The term ``State'' has the same meaning as in 
        section 104 of the Cranston-Gonzalez National Affordable Housing 
        Act.
            (15) Tenant-based assistance.--The term ``tenant-based 
        assistance'' has the same meaning as in section 8(f) of the 
        United States Housing Act of 1937.
            (16) Unit of general local government.--The term ``unit of 
        general local government'' has the same meaning as in section 
        104 of the Cranston-Gonzalez National Affordable Housing Act.
            (17) Very low-income family.--The term ``very low-income 
        family'' has the same meaning as in section 3(b) of the United 
        States Housing Act of 1937.
            (18) Qualified mortgagee.--The term ``qualified mortgagee'' 
        means an entity approved by the Secretary that is capable of 
        servicing, as well as originating, FHA-insured mortgages, and 
        that--
                    (A) is not suspended or debarred by the Secretary;
                    (B) is not suspended or on probation imposed by the 
                Mortgagee Review Board; and
                    (C) is not in default under any Government National 
                Mortgage Association obligation.

SEC. 513. <<NOTE: 42 USC 1437f note.>> AUTHORITY OF PARTICIPATING 
            ADMINISTRATIVE ENTITIES.

    (a) Participating Administrative Entities.--

[[Page 111 STAT. 1390]]

            (1) <<NOTE: Contracts.>> In general.--Subject to subsection 
        (b)(3), the Secretary shall enter into portfolio restructuring 
        agreements with 
        participating administrative entities for the implementation of 
        mortgage restructuring and rental assistance sufficiency plans 
        to restructure multifamily housing mortgages insured or held by 
        the Secretary under the National Housing Act, in order to--
                    (A) reduce the costs of expiring contracts for 
                assistance under section 8 of the United States Housing 
                Act of 1937;
                    (B) address financially and physically troubled 
                projects; and
                    (C) correct management and ownership deficiencies.
            (2) Portfolio restructuring agreements.--Each portfolio 
        restructuring agreement entered into under this subsection 
        shall--
                    (A) be a cooperative agreement to establish the 
                obligations and requirements between the Secretary and 
                the participating administrative entity;
                    (B) identify the eligible multifamily housing 
                projects or groups of projects for which the 
                participating administrative entity is responsible for 
                assisting in developing and implementing approved 
                mortgage restructuring and rental assistance sufficiency 
                plans under section 514;
                    (C) require the participating administrative entity 
                to review and certify to the accuracy and completeness 
                of the evaluation of rehabilitation needs required under 
                section 514(e)(3) for each eligible multifamily housing 
                project included in the portfolio restructuring 
                agreement, in accordance with regulations promulgated by 
                the Secretary;
                    (D) identify the responsibilities of both the 
                participating administrative entity and the Secretary in 
                implementing a mortgage restructuring and rental 
                assistance 
                sufficiency plan, including any actions proposed to be 
                taken under section 516 or 517;
                    (E) require each mortgage restructuring and rental 
                assistance sufficiency plan to be prepared in accordance 
                with the requirements of section 514 for each eligible 
                multifamily housing project;
                    (F) include other requirements established by the 
                Secretary, including a right of the Secretary to 
                terminate the contract immediately for failure of the 
                participating administrative entity to comply with any 
                applicable requirement;
                    (G) if the participating administrative entity is a 
                State housing finance agency or a local housing agency, 
                indemnify the participating administrative entity 
                against lawsuits and penalties for actions taken 
                pursuant to the agreement, excluding actions involving 
                willful misconduct or negligence;
                    (H) include compensation for all reasonable expenses 
                incurred by the participating administrative entity 
                necessary to perform its duties under this subtitle; and
                    (I) include, where appropriate, incentive agreements 
                with the participating administrative entity to reward 
                superior performance in meeting the purposes of this 
                Act.

    (b) Selection of Participating Administrative Entity.--

[[Page 111 STAT. 1391]]

            (1) Selection criteria.--The Secretary shall select a 
        participating administrative entity based on whether, in the 
        determination of the Secretary, the participating administrative 
        entity--
                    (A) has demonstrated experience in working directly 
                with residents of low-income housing projects and with 
                tenants and other community-based organizations;
                    (B) has demonstrated experience with and capacity 
                for multifamily restructuring and multifamily financing 
                (which may include risk-sharing arrangements and 
                restructuring eligible multifamily housing properties 
                under the fiscal year 1997 Federal Housing 
                Administration multifamily housing demonstration 
                program);
                    (C) has a history of stable, financially sound, and 
                responsible administrative performance (which may 
                include the management of affordable low-income rental 
                housing);
                    (D) has demonstrated financial strength in terms of 
                asset quality, capital adequacy, and liquidity;
                    (E) has demonstrated that it will carry out the 
                specific transactions and other responsibilities under 
                this subtitle in a timely, efficient, and cost-effective 
                manner; and
                    (F) meets other criteria, as determined by the 
                Secretary.
            (2) Selection.--If more than 1 interested entity meets the 
        qualifications and selection criteria for a participating 
        administrative entity, the Secretary may select the entity that 
        demonstrates, as determined by the Secretary, that it will--
                    (A) provide the most timely, efficient, and cost-
                effective--
                          (i) restructuring of the mortgages covered by 
                      the portfolio restructuring agreement; and
                          (ii) administration of the section 8 project-
                      based assistance contract, if applicable; and
                    (B) protect the public interest (including the long-
                term provision of decent low-income affordable rental 
                housing and protection of residents, communities, and 
                the American taxpayer).
            (3) Partnerships.--For the purposes of any participating 
        administrative entity applying under this subsection, 
        participating administrative entities are encouraged to develop 
        partnerships with each other and with nonprofit organizations, 
        if such partnerships will further the participating 
        administrative 
        entity's ability to meet the purposes of this Act.
            (4) Alternative administrators.--With respect to any 
        eligible multifamily housing project for which a participating 
        administrative entity is unavailable, or should not be selected 
        to carry out the requirements of this subtitle with respect to 
        that multifamily housing project for reasons relating to the 
        selection criteria under paragraph (1), the Secretary shall--
                    (A) carry out the requirements of this subtitle with 
                respect to that eligible multifamily housing project; or
                    (B) contract with other qualified entities that meet 
                the requirements of paragraph (1) to provide the 
                authority to carry out all or a portion of the 
                requirements of this subtitle with respect to that 
                eligible multifamily housing project.

[[Page 111 STAT. 1392]]

            (5) Priority for public agencies as participating 
        administrative entities.--The Secretary shall provide a 
        reasonable period during which the Secretary will consider 
        proposals only from State housing finance agencies or local 
        housing agencies, and the Secretary shall select such an agency 
        without considering other applicants if the Secretary determines 
        that the agency is qualified. The period shall be of sufficient 
        duration for the Secretary to determine whether any State 
        housing finance agencies or local housing agencies are 
        interested and qualified. <<NOTE: Notification.>> Not later than 
        the end of the period, the Secretary shall notify the State 
        housing finance agency or the local housing agency regarding the 
        status of the proposal and, if the proposal is rejected, the 
        reasons for the rejection and an opportunity for the applicant 
        to respond.
            (6) State and local portfolio requirements.--
                    (A) In general.--If the housing finance agency of a 
                State is selected as the participating administrative 
                entity, that agency shall be responsible for such 
                eligible multifamily housing projects in that State as 
                may be agreed upon by the participating administrative 
                entity and the Secretary. If a local housing agency is 
                selected as the 
                participating administrative entity, that agency shall 
                be responsible for such eligible multifamily housing 
                projects in the jurisdiction of the agency as may be 
                agreed upon by the participating administrative entity 
                and the Secretary.
                    (B) Nondelegation.--Except with the prior approval 
                of the Secretary, a participating administrative entity 
                may not delegate or transfer responsibilities and 
                functions under this subtitle to 1 or more entities.
            (7) Private entity requirements.--
                    (A) In general.--If a for-profit entity is selected 
                as the participating administrative entity, that entity 
                shall be required to enter into a partnership with a 
                public purpose entity (including the Department).
                    (B) Prohibition.--No private entity shall share, 
                participate in, or otherwise benefit from any equity 
                created, received, or restructured as a result of the 
                portfolio restructuring agreement.

SEC. 514. <<NOTE: 42 USC 1437f note.>> MORTGAGE RESTRUCTURING AND RENTAL 
            ASSISTANCE SUFFICIENCY PLAN.

    (a) In General.--
            (1) Development of procedures and requirements.--The 
        Secretary shall develop procedures and requirements for the 
        submission of a mortgage restructuring and rental assistance 
        sufficiency plan for each eligible multifamily housing project 
        with an expiring contract.
            (2) Terms and conditions.--Each mortgage restructuring and 
        rental assistance sufficiency plan submitted under this 
        subsection shall be developed by the participating 
        administrative entity, in cooperation with an owner of an 
        eligible multifamily housing project and any servicer for the 
        mortgage that is a qualified mortgagee, under such terms and 
        conditions as the Secretary shall require.
            (3) Consolidation.--Mortgage restructuring and rental 
        assistance sufficiency plans submitted under this subsection

[[Page 111 STAT. 1393]]

        may be consolidated as part of an overall strategy for more than 
        1 property.

    (b) Notice Requirements.--The Secretary shall establish notice 
procedures and hearing requirements for tenants and owners concerning 
the dates for the expiration of project-based assistance contracts for 
any eligible multifamily housing project.
    (c) Extension of Contract Term.--Subject to agreement by a project 
owner, the Secretary may extend the term of any expiring contract or 
provide a section 8 contract with rent levels set in accordance with 
subsection (g) for a period sufficient to facilitate the implementation 
of a mortgage restructuring and rental assistance sufficiency plan, as 
determined by the Secretary.
    (d) <<NOTE: Notification.>> Tenant Rent Protection.--If the owner of 
a project with an expiring Federal rental assistance contract does not 
agree to extend the contract, not less than 12 months prior to 
terminating the contract, the project owner shall provide written notice 
to the Secretary and the tenants and the Secretary shall make tenant-
based assistance available to tenants residing in units assisted under 
the expiring contract at the time of expiration.

    (e) Mortgage Restructuring and Rental Assistance 
Sufficiency Plan.--Each mortgage restructuring and rental assistance 
sufficiency plan shall--
            (1) except as otherwise provided, restructure the project-
        based assistance rents for the eligible multifamily housing 
        project in a manner consistent with subsection (g), or provide 
        for tenant-based assistance in accordance with section 515;
            (2) allow for rent adjustments by applying an operating cost 
        adjustment factor established under guidelines established by 
        the Secretary;
            (3) require the owner or purchaser of an eligible 
        multifamily housing project to evaluate the rehabilitation needs 
        of the project, in accordance with regulations of the Secretary, 
        and notify the participating administrative entity of the 
        rehabilitation needs;
            (4) require the owner or purchaser of the project to provide 
        or contract for competent management of the project;
            (5) require the owner or purchaser of the project to take 
        such actions as may be necessary to rehabilitate, maintain 
        adequate reserves, and to maintain the project in decent and 
        safe condition, based on housing quality standards established 
        by--
                    (A) the Secretary; or
                    (B) local housing codes or codes adopted by public 
                housing agencies that--
                          (i) meet or exceed housing quality standards 
                      established by the Secretary; and
                          (ii) do not severely restrict housing choice;
            (6) require the owner or purchaser of the project to 
        maintain affordability and use restrictions in accordance with 
        regulations promulgated by the Secretary, for a term of not less 
        than 30 years which restrictions shall be--
                    (A) contained in a legally enforceable document 
                recorded in the appropriate records; and
                    (B) consistent with the long-term physical and 
                financial viability and character of the project as 
                affordable housing;
            (7) include a certification by the participating 
        administrative entity that the restructuring meets subsidy 
        layering

[[Page 111 STAT. 1394]]

        requirements established by the Secretary by regulation for 
        purposes of this subtitle;
            (8) require the owner or purchaser of the project to meet 
        such other requirements as the Secretary determines to be 
        appropriate; and
            (9) prohibit the owner from refusing to lease a reasonable 
        number of units to holders of certificates and vouchers under 
        section 8 of the United States Housing Act of 1937 because of 
        the status of the prospective tenants as certificate and voucher 
        holders.

    (f) Tenant and Other Participation and Capacity 
Building.--
            (1) Procedures.--
                    (A) In general.--The Secretary shall establish 
                procedures to provide an opportunity for tenants of the 
                project, residents of the neighborhood, the local 
                government, and other affected parties to participate 
                effectively and on a timely basis in the restructuring 
                process established by this subtitle.
                    (B) Coverage.--These procedures shall take into 
                account the need to provide tenants of the project, 
                residents of the neighborhood, the local government, and 
                other affected parties timely notice of proposed 
                restructuring actions and appropriate access to relevant 
                information about restructuring activities. To the 
                extent practicable and consistent with the need to 
                accomplish project restructuring in an efficient manner, 
                the procedures shall give all such parties an 
                opportunity to provide comments to the participating 
                administrative entity in writing, in meetings, or in 
                another appropriate manner (which comments shall be 
                taken into consideration by the participating 
                administrative entity).
            (2) Required consultation.--The procedures developed 
        pursuant to paragraph (1) shall require consultation with 
        tenants of the project, residents of the neighborhood, the local 
        government, and other affected parties, in connection with at 
        least the following:
                    (A) the mortgage restructuring and rental assistance 
                sufficiency plan;
                    (B) any proposed transfer of the project; and
                    (C) the rental assistance assessment plan pursuant 
                to section 515(c).
            (3) Funding.--
                    (A) In general.--The Secretary may provide not more 
                than $10,000,000 annually in funding from which the 
                Secretary may make obligations to tenant groups, 
                nonprofit organizations, and public entities for 
                building the capacity of tenant organizations, for 
                technical assistance in furthering any of the purposes 
                of this subtitle (including transfer of developments to 
                new owners) and for tenant services, from those amounts 
                made available under appropriations Acts for 
                implementing this subtitle or previously made available 
                for technical assistance in connection with the 
                preservation of affordable rental housing for low-income 
                persons.
                    (B) Manner of providing.--Notwithstanding any other 
                provision of law restricting the use of preservation

[[Page 111 STAT. 1395]]

                technical assistance funds, the Secretary may provide 
                any funds made available under subparagraph (A) through 
                existing technical assistance programs pursuant to any 
                other Federal law, including the Low-Income Housing 
                Preservation and Resident Homeownership Act of 1990 and 
                the Multifamily Property Disposition Reform Act of 1994, 
                or through any other means that the Secretary considers 
                consistent with the purposes of this subtitle, without 
                regard to any set-aside requirement otherwise applicable 
                to those funds.
                    (C) Prohibition.--None of the funds made available 
                under subparagraph (A) may be used directly or 
                indirectly to pay for any personal service, 
                advertisement, telegram, telephone, letter, printed or 
                written matter, or other device, intended or designed to 
                influence in any manner a Member of Congress, to favor 
                or oppose, by vote or otherwise, any legislation or 
                appropriation by Congress, whether before or after the 
                introduction of any bill or resolution proposing such 
                legislation or appropriation.

    (g) Rent Levels.--
            (1) In general.--Except as provided in paragraph (2), each 
        mortgage restructuring and rental assistance sufficiency plan 
        pursuant to the terms, conditions, and requirements of this 
        subtitle shall establish for units assisted with project-based 
        assistance in eligible multifamily housing projects adjusted 
        rent levels that--
                    (A) are equivalent to rents derived from comparable 
                properties, if--
                          (i) the participating administrative entity 
                      makes the rent determination within a reasonable 
                      period of time; and
                          (ii) the market rent determination is based on 
                      not less than 2 comparable properties; or
                    (B) if those rents cannot be determined, are equal 
                to 90 percent of the fair market rents for the relevant 
                market area.
            (2) Exceptions.--
                    (A) In general.--A contract under this section may 
                include rent levels that exceed the rent level described 
                in paragraph (1) at rent levels that do not exceed 120 
                percent of the fair market rent for the market area 
                (except that the Secretary may waive this limit for not 
                more than five percent of all units subject to 
                restructured mortgages in any fiscal year, based on a 
                finding of special need), if the participating 
                administrative entity--
                          (i) determines that the housing needs of the 
                      tenants and the community cannot be adequately 
                      addressed through implementation of the rent 
                      limitation required to be established through a 
                      mortgage restructuring and rental assistance 
                      sufficiency plan under paragraph (1); and
                          (ii) follows the procedures under paragraph 
                      (3).
                    (B) Exception rents.--In any fiscal year, a 
                participating administrative entity may approve 
                exception rents on not more than 20 percent of all units 
                covered by the portfolio restructuring agreement with 
                expiring contracts in

[[Page 111 STAT. 1396]]

                that fiscal year, except that the Secretary may waive 
                this ceiling upon a finding of special need.
            (3) Rent levels for exception projects.--For purposes of 
        this section, a project eligible for an exception rent shall 
        receive a rent calculated on the actual and projected costs of 
        operating the project, at a level that provides income 
        sufficient to support a budget-based rent that consists of--
                    (A) the debt service of the project;
                    (B) the operating expenses of the project, as 
                determined by the participating administrative entity, 
                including--
                          (i) contributions to adequate reserves;
                          (ii) the costs of maintenance and necessary 
                      rehabilitation; and
                          (iii) other eligible costs permitted under 
                      section 8 of the United States Housing Act of 
                      1937;
                    (C) an adequate allowance for potential operating 
                losses due to vacancies and failure to collect rents, as 
                determined by the participating administrative entity;
                    (D) an allowance for a reasonable rate of return to 
                the owner or purchaser of the project, as determined by 
                the participating administrative entity, which may be 
                established to provide incentives for owners or 
                purchasers to meet benchmarks of quality for management 
                and housing quality; and
                    (E) other expenses determined by the participating 
                administrative entity to be necessary for the operation 
                of the project.

    (h) Exemptions From Restructuring.--The following 
categories of projects shall not be covered by a mortgage restructuring 
and rental assistance sufficiency plan if--
            (1) the primary financing or mortgage insurance for the 
        multifamily housing project that is covered by that expiring 
        contract was provided by a unit of State government or a unit of 
        general local government (or an agency or instrumentality of a 
        unit of a State government or unit of general local government);
            (2) the project is a project financed under section 202 of 
        the Housing Act of 1959 or section 515 of the Housing Act of 
        1949; or
            (3) the project has an expiring contract under section 8 of 
        the United States Housing Act of 1937 entered into pursuant to 
        section 441 of the Stewart B. McKinney Homeless Assistance Act.

SEC. 515. <<NOTE: Contracts. 42 USC 1437f note.>> SECTION 8 RENEWALS AND 
            LONG-TERM AFFORDABILITY COMMITMENT BY OWNER OF PROJECT.

    (a) Section 8 Renewals of Restructured Projects.--
            (1) Project-based assistance.--Subject to the availability 
        of amounts provided in advance in appropriations Acts, and to 
        the control of the Secretary of applicable accounts in the 
        Treasury of the United States, with respect to an expiring 
        section 8 contract on an eligible multifamily housing project to 
        be renewed with project-based assistance (based on a 
        determination under subsection (c)), the Secretary shall enter 
        into contracts with participating administrative entities 
        pursuant to which the participating administrative entity shall 
        offer to renew or extend the contract, or the Secretary shall 
        offer to

[[Page 111 STAT. 1397]]

        renew such contract, and the owner of the project shall accept 
        the offer, if the initial renewal is in accordance with the 
        terms and conditions specified in the mortgage restructuring and 
        rental assistance sufficiency plan and the rental assistance 
        assessment plan.
            (2) Tenant-based assistance.--Subject to the availability of 
        amounts provided in advance in appropriations Acts and to the 
        control of the Secretary of applicable accounts in the Treasury 
        of the United States, with respect to an expiring section 8 
        contract on an eligible multifamily housing project to be 
        renewed with tenant-based assistance (based on a determination 
        under subsection (c)), the Secretary shall enter into contracts 
        with participating administrative entities pursuant to which the 
        participating administrative entity shall provide for the 
        renewal of section 8 assistance on an eligible multifamily 
        housing project with tenant-based assistance, or the Secretary 
        shall provide for such renewal, in accordance with the terms and 
        conditions specified in the mortgage restructuring and rental 
        assistance sufficiency plan and the rental assistance assessment 
        plan.

    (b) Required Commitment.--After the initial renewal of a section 8 
contract pursuant to this section, the owner shall accept each offer 
made pursuant to subsection (a) to renew the contract, for the term of 
the affordability and use restrictions required by section 514(e)(6), if 
the offer to renew is on terms and conditions specified in the mortgage 
restructuring and rental assistance sufficiency plan.
    (c) Determination of Whether To Renew With Project-Based or Tenant-
Based Assistance.--
            (1) Mandatory renewal of project-based assistance.--Section 
        8 assistance shall be renewed with project-based 
        assistance, if--
                    (A) the project is located in an area in which the 
                participating administrative entity determines, based on 
                housing market indicators, such as low vacancy rates or 
                high absorption rates, that there is not adequate 
                available and affordable housing or that the tenants of 
                the project would not be able to locate suitable units 
                or use the tenant-based assistance successfully;
                    (B) a predominant number of the units in the project 
                are occupied by elderly families, disabled families, or 
                elderly and disabled families;
                    (C) the project is held by a nonprofit cooperative 
                ownership housing corporation or nonprofit cooperative 
                housing trust.
            (2) Rental assistance assessment plan.--
                    (A) In general.--With respect to any project that is 
                not described in paragraph (1), the participating 
                administrative entity shall, after consultation with the 
                owner of the project, develop a rental assistance 
                assessment plan to determine whether to renew assistance 
                for the project with tenant-based assistance or project-
                based assistance.
                    (B) Rental assistance assessment plan 
                requirements.--Each rental assistance assessment plan 
                developed under this paragraph shall include an 
                assessment of the impact of converting to tenant-based 
                assistance and the impact of extending project-based 
                assistance on--

[[Page 111 STAT. 1398]]

                          (i) the ability of the tenants to find 
                      adequate, available, decent, comparable, and 
                      affordable housing in the local market;
                          (ii) the types of tenants residing in the 
                      project (such as elderly families, disabled 
                      families, large families, and cooperative 
                      homeowners);
                          (iii) the local housing needs identified in 
                      the comprehensive housing affordability strategy, 
                      and local market vacancy trends;
                          (iv) the cost of providing assistance, 
                      comparing the applicable payment standard to the 
                      project's adjusted rent levels determined under 
                      section 514(g);
                          (v) the long-term financial stability of the 
                      project;
                          (vi) the ability of residents to make 
                      reasonable choices about their individual living 
                      situations;
                          (vii) the quality of the neighborhood in which 
                      the tenants would reside; and
                          (viii) the project's ability to compete in the 
                      marketplace.
                    (C) Reports to director.--Each participating 
                administrative entity shall report regularly to the 
                Director as defined in subtitle D, as the Director shall 
                require, identifying--
                          (i) each eligible multifamily housing project 
                      for which the entity has developed a rental 
                      assistance assessment plan under this paragraph 
                      that determined that the tenants of the project 
                      generally supported renewal of assistance with 
                      tenant-based assistance, but under which 
                      assistance for the project was renewed with 
                      project-based assistance; and
                          (ii) each project for which the entity has 
                      developed such a plan under which the assistance 
                      is renewed using tenant-based assistance.
            (3) Eligibility for tenant-based assistance.--Subject to 
        paragraph (4), with respect to any project that is not described 
        in paragraph (1), if a participating administrative entity 
        approves the use of tenant-based assistance based on a rental 
        assistance assessment plan developed under paragraph (2), 
        tenant-based assistance shall be provided to each assisted 
        family (other than a family already receiving tenant-based 
        assistance) residing in the project at the time the assistance 
        described in section 512(2)(B) terminates.
            (4) Rents for families receiving tenant-based assistance.--
                    (A) In general.--Notwithstanding subsection (c)(1) 
                or (o)(1) of section 8 of the United States Housing Act 
                of 1937, in the case of any family described in 
                paragraph (3) that resides in a project described in 
                section 512(2)(B) in which the reasonable rent (which 
                rent shall include any amount allowed for utilities and 
                shall not exceed comparable market rents for the 
                relevant housing market area) exceeds the fair market 
                rent limitation or the payment standard, as applicable, 
                the amount of assistance for the family shall be 
                determined in accordance with subparagraph (B).
                    (B) Maximum monthly rent; payment standard.--With 
                respect to the certificate program under section 8(b)

[[Page 111 STAT. 1399]]

                of the United States Housing Act of 1937, the maximum 
                monthly rent under the contract (plus any amount allowed 
                for utilities) shall be such reasonable rent for the 
                unit. With respect to the voucher program under section 
                8(o) of the United States Housing Act of 1937, the 
                payment standard shall be deemed to be such reasonable 
                rent for the unit.
            (5) Inapplicability of certain provision.--If a 
        participating administrative entity approves renewal with 
        project-based assistance under this subsection, section 8(d)(2) 
        of the United States Housing Act of 1937 shall not apply.

SEC. 516. <<NOTE: 42 USC 1437f note.>> PROHIBITION ON RESTRUCTURING.

    (a) Prohibition on Restructuring.--The Secretary may elect not to 
consider any mortgage restructuring and rental assistance sufficiency 
plan or request for contract renewal if the Secretary or the 
participating administrative entity determines that--
            (1)(A) the owner or purchaser of the project has engaged in 
        material adverse financial or managerial actions or omissions 
        with regard to such project; or
            (B) the owner or purchaser of the project has engaged in 
        material adverse financial or managerial actions or omissions 
        with regard to other projects of such owner or purchaser that 
        are federally assisted or financed with a loan from, or mortgage 
        insured or guaranteed by, an agency of the Federal Government;
            (2) material adverse financial or managerial actions or 
        omissions include--
                    (A) materially violating any Federal, State, or 
                local law or regulation with regard to this project or 
                any other federally assisted project, after receipt of 
                notice and an opportunity to cure;
                    (B) materially breaching a contract for assistance 
                under section 8 of the United States Housing Act of 
                1937, after receipt of notice and an opportunity to 
                cure;
                    (C) materially violating any applicable regulatory 
                or other agreement with the Secretary or a participating 
                administrative entity, after receipt of notice and an 
                opportunity to cure;
                    (D) repeatedly and materially violating any Federal, 
                State, or local law or regulation with regard to the 
                project or any other federally assisted project;
                    (E) repeatedly and materially breaching a contract 
                for assistance under section 8 of the United States 
                Housing Act of 1937;
                    (F) repeatedly and materially violating any 
                applicable regulatory or other agreement with the 
                Secretary or a participating administrative entity;
                    (G) repeatedly failing to make mortgage payments at 
                times when project income was sufficient to maintain and 
                operate the property;
                    (H) materially failing to maintain the property 
                according to housing quality standards after receipt of 
                notice and a reasonable opportunity to cure; or
                    (I) committing any actions or omissions that would 
                warrant suspension or debarment by the Secretary;

[[Page 111 STAT. 1400]]

            (3) the owner or purchaser of the property materially failed 
        to follow the procedures and requirements of this subtitle, 
        after receipt of notice and an opportunity to cure; or
            (4) the poor condition of the project cannot be remedied in 
        a cost effective manner, as determined by the participating 
        administrative entity.

The term ``owner'' as used in this subsection, in addition to it having 
the same meaning as in section 8(f) of the United States Housing Act of 
1937, also means an affiliate of the owner. The term ``purchaser'' as 
used in this subsection means any private person or entity, including a 
cooperative, an agency of the Federal Government, or a public housing 
agency, that, upon purchase of the project, would have the legal right 
to lease or sublease dwelling units in the project, and also means an 
affiliate of the purchaser. The terms ``affiliate of the owner'' and 
``affiliate of the purchaser'' means any person or entity (including, 
but not limited to, a general partner or managing member, or an officer 
of either) that controls an owner or purchaser, is controlled by an 
owner or purchaser, or is under common control with the owner or 
purchaser. The term ``control'' means the direct or indirect power 
(under contract, equity ownership, the right to vote or determine a 
vote, or otherwise) to direct the financial, legal, beneficial or other 
interests of the owner or purchaser.
    (b) Opportunity To Dispute Findings.--
            (1) In general.--During the 30-day period beginning on the 
        date on which the owner or purchaser of an eligible 
        multifamily housing project receives notice of a rejection under 
        subsection (a) or of a mortgage restructuring and rental 
        assistance sufficiency plan under section 514, the Secretary or 
        participating administrative entity shall provide that owner or 
        purchaser with an opportunity to dispute the basis for the 
        rejection and an opportunity to cure.
            (2) Affirmation, modification, or reversal.--
                    (A) In general.--After providing an opportunity to 
                dispute under paragraph (1), the Secretary or the 
                participating administrative entity may affirm, modify, 
                or reverse any rejection under subsection (a) or 
                rejection of a mortgage restructuring and rental 
                assistance sufficiency plan under section 514.
                    (B) Reasons for decision.--The Secretary or the 
                participating administrative entity, as applicable, 
                shall identify the reasons for any final decision under 
                this paragraph.
                    (C) Review process.--The Secretary shall establish 
                an administrative review process to appeal any final 
                decision under this paragraph.

    (c) Final Determination.--Any final determination under this section 
shall not be subject to judicial review.
    (d) Displaced Tenants.--Subject to the availability of amounts 
provided in advance in appropriations Acts, for any low-income tenant 
that is residing in a project or receiving assistance under section 8 of 
the United States Housing Act of 1937 at the time of rejection under 
this section, that tenant shall be provided with tenant-based assistance 
and reasonable moving expenses, as determined by the Secretary.
    (e) Transfer of Property.--For properties disqualified from the 
consideration of a mortgage restructuring and rental assistance

[[Page 111 STAT. 1401]]

sufficiency plan under this section in accordance with paragraph (1) or 
(2) of subsection (a) because of actions by an owner or purchaser, the 
Secretary shall establish procedures to facilitate the voluntary sale or 
transfer of a property as part of a mortgage restructuring and rental 
assistance sufficiency plan, with a 
preference for tenant organizations and tenant-endorsed community-based 
nonprofit and public agency purchasers meeting such reasonable 
qualifications as may be established by the Secretary.

SEC. 517. <<NOTE: 42 USC 1437f note.>> RESTRUCTURING TOOLS.

    (a) Mortgage Restructuring.--
            (1) In this subtitle, an approved mortgage restructuring and 
        rental assistance sufficiency plan shall include restructuring 
        mortgages in accordance with this subsection to provide--
                    (A) a restructured or new first mortgage that is 
                sustainable at rents at levels that are established in 
                section 514(g); and
                    (B) a second mortgage that is in an amount equal to 
                no more than the difference between the restructured or 
                new first mortgage and the indebtedness under the 
                existing insured mortgage immediately before it is 
                restructured or refinanced, provided that the amount of 
                the second mortgage shall be in an amount that the 
                Secretary or participating administrative entity 
                determines can reasonably be expected to be repaid.
            (2) The second mortgage shall bear interest at a rate not to 
        exceed the applicable Federal rate as defined in section 1274(d) 
        of the Internal Revenue Code of 1986. The term of the second 
        mortgage shall be equal to the term of the restructured or new 
        first mortgage.
            (3) Payments on the second mortgage shall be deferred when 
        the first mortgage remains outstanding, except to the extent 
        there is excess project income remaining after payment of all 
        reasonable and necessary operating expenses (including deposits 
        in a reserve for replacement), debt service on the first 
        mortgage, and any other expenditures approved by the Secretary. 
        At least 75 percent of any excess project income shall be 
        applied to payments on the second mortgage, and the Secretary or 
        the participating administrative entity may permit up to 25 
        percent to be paid to the project owner if the Secretary or 
        participating administrative entity determines that the project 
        owner meets benchmarks for management and housing quality.
            (4) The full amount of the second mortgage shall be 
        immediately due and payable if--
                    (A) the first mortgage is terminated or paid in 
                full, except as otherwise provided by the holder of the 
                second mortgage;
                    (B) the project is purchased and the second mortgage 
                is assumed by any subsequent purchaser in violation of 
                guidelines established by the Secretary; or
                    (C) the Secretary provides notice to the project 
                owner that such owner has failed to materially comply 
                with any requirements of this section or the United 
                States Housing Act of 1937 as those requirements apply 
                to the project, with a reasonable opportunity for such 
                owner to cure such failure.

[[Page 111 STAT. 1402]]

            (5) The Secretary may modify the terms or forgive all or 
        part of the second mortgage if the Secretary holds the second 
        mortgage and if the project is acquired by a tenant organization 
        or tenant-endorsed community-based nonprofit or public agency, 
        pursuant to guidelines established by the 
        Secretary.

    (b) Restructuring Tools.--In addition to the requirements of 
subsection (a) and to the extent these actions are consistent with this 
section and with the control of the Secretary of applicable accounts in 
the Treasury of the United States, an approved mortgage restructuring 
and rental assistance sufficiency plan under this subtitle may include 
one or more of the following actions:
            (1) Full or partial payment of claim.--making a full payment 
        of claim or partial payment of claim under section 541(b) of the 
        National Housing Act, as amended by section 523(b) of this Act. 
        Any payment under this paragraph shall not require the approval 
        of a mortgagee;
            (2) Refinancing of debt.--refinancing of all or part of the 
        debt on a project. If the refinancing involves a mortgage that 
        will continue to be insured under the National Housing Act, the 
        refinancing shall be documented through amendment of the 
        existing insurance contract and not through a new insurance 
        contract;
            (3) Mortgage insurance.--providing FHA multifamily mortgage 
        insurance, reinsurance or other credit enhancement alternatives, 
        including multifamily risk-sharing mortgage programs, as 
        provided under section 542 of the Housing and Community 
        Development Act of 1992. Any limitations on the number of units 
        available for mortgage insurance under section 542 shall not 
        apply to eligible multifamily housing projects. Any credit 
        subsidy costs of providing mortgage insurance shall be paid from 
        the Liquidating Accounts of the General Insurance Fund or the 
        Special Risk Insurance Fund and shall not be subject to any 
        limitation on appropriations;
            (4) Credit enhancement.--providing any additional State or 
        local mortgage credit enhancements and risk-sharing arrangements 
        that may be established with State or local housing finance 
        agencies, the Federal Housing Finance Board, the Federal 
        National Mortgage Association, and the Federal Home Loan 
        Mortgage Corporation, to a modified or refinanced first 
        mortgage;
            (5) Compensation of third parties.--consistent with the 
        portfolio restructuring agreement, entering into agreements, 
        incurring costs, or making payments, including incentive 
        agreements designed to reward superior performance in meeting 
        the purposes of this Act, as may be reasonably necessary, to 
        compensate the participation of participating administrative 
        entities and other parties in undertaking actions authorized by 
        this subtitle. Upon request to the Secretary, participating 
        administrative entities that are qualified under the United 
        States Housing Act of 1937 to serve as contract administrators 
        shall be the contract administrators under section 8 of the 
        United States Housing Act of 1937 for purposes of any contracts 
        entered into as part of an approved mortgage restructuring and 
        rental assistance sufficiency plan. Subject to the availability 
        of amounts provided in advance in appropriations Acts for 
        administrative fees under section 8 of the United States

[[Page 111 STAT. 1403]]

        Housing Act of 1937, such amounts may be used to compensate 
        participating administrative entities for compliance monitoring 
        costs incurred under section 519;
            (6) Use of project accounts.--applying any residual 
        receipts, replacement reserves, and any other project accounts 
        not required for project operations, to maintain the long-term 
        affordability and physical condition of the property or of other 
        eligible multifamily housing projects. The participating 
        administrative entity may expedite the acquisition of residual 
        receipts, replacement reserves, or other such accounts, by 
        entering into agreements with owners of housing covered by an 
        expiring contract to provide an owner with a share of the 
        receipts, not to exceed 10 percent, in accordance with 
        guidelines established by the Secretary; and
            (7) Rehabilitation needs.--
                    (A) In general.--Rehabilitation may be paid from the 
                residual receipts, replacement reserves, or any other 
                project accounts not required for project operations, 
                or, as provided in appropriations Acts and subject to 
                the control of the Secretary of applicable accounts in 
                the Treasury of the United States, from budget authority 
                provided for increases in the budget authority for 
                assistance contracts under section 8 of the United 
                States Housing Act of 1937, the rehabilitation grant 
                program established under section 236 of the National 
                Housing Act, as amended by section 531 of subtitle B of 
                this Act, or through the debt restructuring transaction. 
                Rehabilitation under this paragraph shall only be for 
                the purpose of restoring the project to a non-luxury 
                standard adequate for the rental market intended at the 
                original approval of the project-based assistance.
                    (B) Contribution.--Each owner or purchaser of a 
                project to be rehabilitated under an approved mortgage 
                restructuring and rental assistance sufficiency plan 
                shall contribute, from non-project resources, not less 
                than 25 percent of the amount of rehabilitation 
                assistance received, except that the participating 
                administrative entity may provide an exception from the 
                requirement of this subparagraph for housing 
                cooperatives.

    (c) Role of FNMA and FHLMC.--Section 1335 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4565) 
is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) paragraph (4), by striking the period at the end and 
        inserting ``; and'';
            (3) by striking ``To meet'' and inserting the following:

    ``(a) In General.--To meet''; and
            (4) by adding at the end the following:
            ``(5) assist in maintaining the affordability of assisted 
        units in eligible multifamily housing projects with expiring 
        contracts, as defined under the Multifamily Assisted Housing 
        Reform and Affordability Act of 1997.

    ``(b) Affordable Housing Goals.--Actions taken under subsection 
(a)(5) shall constitute part of the contribution of each entity in 
meeting its affordable housing goals under sections 1332, 1333, and 1334 
for any fiscal year, as determined by the Secretary.''.

[[Page 111 STAT. 1404]]

    (d) Prohibition on Equity Sharing by the Secretary.--The Secretary 
is prohibited from participating in any equity agreement or profit-
sharing agreement in conjunction with any eligible multifamily housing 
project.
    (e) Conflict of Interest Guidelines.--The Secretary may establish 
guidelines to prevent conflicts of interest by a participating 
administrative entity that provides, directly or through risk-sharing 
arrangements, any form of credit enhancement or financing pursuant to 
subsections (b)(3) or (b)(4) or to prevent conflicts of interest by any 
other person or entity under this subtitle.

SEC. 518. <<NOTE: 42 USC 1437f note.>> MANAGEMENT STANDARDS.

    Each participating administrative entity shall establish management 
standards, including requirements governing conflicts of interest 
between owners, managers, contractors with an identity of interest, 
pursuant to guidelines established by the Secretary and consistent with 
industry standards.

SEC. 519. <<NOTE: 42 USC 1437f note.>> MONITORING OF COMPLIANCE.

    (a) Compliance Agreements.--(1) Pursuant to regulations issued by 
the Secretary under section 522(a), each participating administrative 
entity, through binding contractual agreements with owners and 
otherwise, shall ensure long-term compliance with the provisions of this 
subtitle. Each agreement shall, at a minimum, provide for--
            (A) enforcement of the provisions of this subtitle; and
            (B) remedies for the breach of those provisions.

    (2) If the participating administrative entity is not qualified 
under the United States Housing Act of 1937 to be a section 8 contract 
administrator or fails to perform its duties under the portfolio 
restructuring agreement, the Secretary shall have the right to enforce 
the agreement.
    (b) Periodic Monitoring.--
            (1) In general.--Not less than annually, each participating 
        administrative entity that is qualified to be the section 8 
        contract administrator shall review the status of all 
        multifamily housing projects for which a mortgage restructuring 
        and rental assistance sufficiency plan has been implemented.
            (2) Inspections.--Each review under this subsection shall 
        include onsite inspection to determine compliance with housing 
        codes and other requirements as provided in this subtitle and 
        the portfolio restructuring agreements.
            (3) Administration.--If the participating administrative 
        entity is not qualified under the United States Housing Act of 
        1937 to be a section 8 contract administrator, either the 
        Secretary or a qualified State or local housing agency shall be 
        responsible for the review required by this subsection.

    (c) Audit by the Secretary.--The Comptroller General of the United 
States, the Secretary, and the Inspector General of the Department of 
Housing and Urban Development may conduct an audit at any time of any 
multifamily housing project for which a mortgage restructuring and 
rental assistance sufficiency plan has been implemented.

SEC. 520. <<NOTE: 42 USC 1437f note.>> REPORTS TO CONGRESS.

    (a) Annual Review.--In order to ensure compliance with this 
subtitle, the Secretary shall conduct an annual review and report

[[Page 111 STAT. 1405]]

to the Congress on actions taken under this subtitle and the status of 
eligible multifamily housing projects.
    (b) Semiannual Review.--Not less than semiannually during the 2-year 
period beginning on the date of the enactment of this Act and not less 
than annually thereafter, the Secretary shall submit reports to the 
Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban Affairs 
of the Senate stating, for such periods, the total number of projects 
identified by participating administrative entities under each of 
clauses (i) and (ii) of section 515(c)(2)(C).

SEC. 521. <<NOTE: 42 USC 1437f note.>> GAO AUDIT AND REVIEW.

    (a) Initial Audit.--Not later than 18 months after the effective 
date of final regulations promulgated under this subtitle, the 
Comptroller General of the United States shall conduct an audit to 
evaluate eligible multifamily housing projects and the implementation of 
mortgage restructuring and rental assistance sufficiency plans.
    (b) Report.--
            (1) In general.--Not later than 18 months after the audit 
        conducted under subsection (a), the Comptroller General of the 
        United States shall submit to Congress a report on the status of 
        eligible multifamily housing projects and the implementation of 
        mortgage restructuring and rental assistance sufficiency plans.
            (2) Contents.--The report submitted under paragraph (1) 
        shall include--
                    (A) a description of the initial audit conducted 
                under subsection (a); and
                    (B) recommendations for any legislative action to 
                increase the financial savings to the Federal Government 
                of the restructuring of eligible multifamily housing 
                projects balanced with the continued availability of the 
                maximum number of affordable low-income housing units.

SEC. 522. <<NOTE: 42 USC 1437f note.>> REGULATIONS.

    (a) Rulemaking and Implementation.--
            (1) Interim regulations.--The Director shall issue such 
        interim regulations as may be necessary to implement this 
        subtitle and the amendments made by this subtitle with respect 
        to eligible multifamily housing projects covered by contracts 
        described in section 512(2)(B) that expire in fiscal year 1999 
        or thereafter. If, before the expiration of such period, the 
        Director has not been appointed, the Secretary shall issue such 
        interim regulations.
            (2) Final regulations.--The Director shall issue final 
        regulations necessary to implement this subtitle and the 
        amendments made by this subtitle with respect to eligible 
        multifamily housing projects covered by contracts described in 
        section 512(2)(B) that expire in fiscal year 1999 or thereafter 
        before the later of: (A) the expiration of the 12-month period 
        beginning upon the date of the enactment of this Act; and (B) 
        the 3-month period beginning upon the appointment of the 
        Director under subtitle D.
            (3) Factors for consideration.--Before the publication of 
        the final regulations under paragraph (2), in addition to public 
        comments invited in connection with publication of the interim 
        rule, the Secretary shall--

[[Page 111 STAT. 1406]]

                    (A) seek recommendations on the implementation of 
                sections 513(b) and 515(c)(1) from organizations repre-
                senting--
                          (i) State housing finance agencies and local 
                      housing agencies;
                          (ii) other potential participating 
                      administering entities;
                          (iii) tenants;
                          (iv) owners and managers of eligible 
                      multifamily housing projects;
                          (v) States and units of general local 
                      government; and
                          (vi) qualified mortgagees; and
                    (B) convene not less than 3 public forums at which 
                the organizations making recommendations under 
                subparagraph (A) may express views concerning the 
                proposed 
                disposition of the recommendations.

    (b) <<NOTE: Applicability.>> Transition Provision for Contracts 
Expiring in Fiscal Year 1998.--Notwithstanding any other provision of 
law, the Secretary shall apply all the terms of section 211 and section 
212 of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997 (except 
for section 212(h)(1)(G) and the limitation in section 212(k)) contracts 
for project-based assistance that expire during fiscal year 1998 (in the 
same manner that such provisions apply to expiring contracts defined in 
section 212(a)(3) of such Act), except that section 517(a) of the Act 
shall apply to mortgages on projects subject to such contracts.

SEC. 523. <<NOTE: 42 USC 1437f note.>> TECHNICAL AND CONFORMING 
            AMENDMENTS.

    (a) Calculation of Limit on Project-Based Assistance.--Section 8(d) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(d)) is amended 
by adding at the end the following:
            ``(5) Calculation of limit.--Any contract entered into under 
        section 514 of the Multifamily Assisted Housing Reform and 
        Affordability Act of 1997 shall be excluded in computing the 
        limit on project-based assistance under this subsection.''.

    (b) Partial Payment of Claims on Multifamily Housing Projects.--
Section 541 of the National Housing Act (12 U.S.C. 1735f-19) is 
amended--
            (1) in subsection (a), in the subsection heading, by 
        striking ``Authority'' and inserting ``Defaulted Mortgages'';
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following:

    ``(b) Existing Mortgages.--Notwithstanding any other 
provision of law, the Secretary, in connection with a mortgage 
restructuring under section 514 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997, may make a one time, nondefault 
partial payment of the claim under the mortgage insurance contract, 
which shall include a determination by the Secretary or the 
participating administrative entity, in accordance with the Multifamily 
Assisted Housing Reform and Affordability Act of 1997, of the market 
value of the project and a restructuring of the mortgage, under such 
terms and conditions as are permitted by section 517(a) of such Act.''.

[[Page 111 STAT. 1407]]

    (c) Reuse and Rescission of Certain Recaptured Budget Authority.--
Section 8(bb) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(bb)) is amended--
            (1) by inserting after ``(bb)'' the following:

    ``Transfer, Reuse, and Rescission of Budget Authority.--
            ``(1)''; and
            (2) by inserting the following new paragraph at the end:
            ``(2) Reuse and rescission of certain recaptured budget 
        authority.--Notwithstanding paragraph (1), if a project-based 
        assistance contract for an eligible multifamily housing project 
        subject to actions authorized under title I is terminated or 
        amended as part of restructuring under section 517 of the 
        Multifamily Assisted Housing Reform and Affordability Act of 
        1997, the Secretary shall recapture the budget authority not 
        required for the terminated or amended contract and use such 
        amounts as are necessary to provide housing assistance for the 
        same number of families covered by such contract for the 
        remaining term of such contract, under a contract providing for 
        project-based or tenant-based assistance. The amount of budget 
        authority saved as a result of the shift to project-based or 
        tenant-based assistance shall be rescinded.''.

    (d) Section 8 Contract Renewals.--Section 405(a) of the Balanced 
Budget Downpayment Act, I (42 U.S.C. 1437f note) is amended by striking 
``For'' and inserting ``Notwithstanding part 24 of title 24 of the Code 
of Federal Regulations, for''.
    (e) Renewal Upon Request of Owner.--Section 211(b)(3) of the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997 (Public Law 104-204; 110 
Stat. 2896) <<NOTE: 42 USC 1437f note.>> is amended--
            (1) by striking the paragraph heading and inserting the 
        following:
            ``(3) Exemption of certain other projects.--''; and
            (2) by striking ``section 202 projects, section 811 projects 
        and section 515 projects'' and inserting ``section 202 projects, 
        section 515 projects, projects with contracts entered into 
        pursuant to section 441 of the Stewart B. McKinney Homeless 
        Assistance Act, and projects with rents that exceed 100 percent 
        of fair market rent for the market area, but that are less than 
        rents for comparable projects''.

    (f) Extension of Demonstration Contract Period.--Section 212(g) of 
the Departments of Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1997 (Public Law 104-
204) <<NOTE: 42 USC 1437f note.>> is amended--
            (1) by inserting ``(1)'' after ``(g)'';
            (2) by inserting before the period at the end the following: 
        ``or in paragraph (2)''; and
            (3) by adding at the end the following:

    ``(2) The Secretary may renew a demonstration contract for an 
additional period of not to exceed 120 days, if--
            ``(A) the contract was originally executed before February 
        1, 1997, and the Secretary determines, in the sole discretion of 
        the Secretary, that the renewal period for the contract needs to 
        exceed 1 year, due to delay of publication of the Secretary's 
        demonstration program guidelines until January 23, 1997 (not to 
        exceed 21 projects); or
            ``(B) the contract was originally executed before October 1, 
        1997, in connection with a project that has been identified

[[Page 111 STAT. 1408]]

        for restructuring under the joint venture approach described in 
        section VII.B.2. of the Secretary's demonstration program 
        guidelines, and the Secretary determines, in the sole discretion 
        of the Secretary, that the renewal period for the contract needs 
        to exceed 1 year, due to delay in implementation of the joint 
        venture agreement required by the guidelines (not to exceed 25 
        projects).''.

SEC. 524. <<NOTE: 42 USC 1437f note.>> SECTION 8 CONTRACT RENEWALS.

    (a) Section 8 Contract Renewal Authority.--
            (1)  In general.--Notwithstanding part 24 of title 24 of the 
        Code of Federal Regulations and subject to section 516 of this 
        subtitle, for fiscal year 1999 and henceforth, the Secretary may 
        use amounts available for the renewal of assistance under 
        section 8 of the United States Housing Act of 1937, upon 
        termination or expiration of a contract for assistance under 
        section 8 (other than a contract for tenant-based assistance and 
        notwithstanding section 8(v) of such Act for loan management 
        assistance), to provide assistance under section 8 of such Act 
        at rent levels that do not exceed comparable market rents for 
        the market area. The assistance shall be provided in accordance 
        with terms and conditions prescribed by the Secretary.
            (2) Exception projects.--Notwithstanding paragraph (1), upon 
        the request of the owner, the Secretary shall renew an expiring 
        contract in accordance with terms and conditions prescribed by 
        the Secretary at the lesser of: (i) existing rents, adjusted by 
        an operating cost adjustment factor established by the 
        Secretary; (ii) a level that provides income sufficient to 
        support a budget-based rent (including a budget-based rent 
        adjustment if justified by reasonable and expected operating 
        expenses); or (iii) in the case of a contract under the moderate 
        rehabilitation program, other than a moderate rehabilitation 
        contract under section 441 of the Stewart B. McKinney Homeless 
        Assistance Act, the base rent adjusted by an operating cost 
        adjustment factor established by the Secretary, for the 
        following categories of multifamily housing projects--
                    (A) projects for which the primary financing or 
                mortgage insurance was provided by a unit of State 
                government or a unit of general local government (or an 
                agency or instrumentality of either) and is not insured 
                under the National Housing Act;
                    (B) projects for which the primary financing was 
                provided by a unit of State government or a unit or 
                general local government (or an agency or 
                instrumentality of either) and the financing involves 
                mortgage insurance under the National Housing Act, such 
                that the implementation of a mortgage restructuring and 
                rental assistance sufficiency plan under this Act is in 
                conflict with applicable law or agreements governing 
                such financing;
                    (C) projects financed under section 202 of the 
                Housing Act of 1959 or section 515 of the Housing Act of 
                1949;
                    (D) projects that have an expiring contract under 
                section 8 of the United States Housing Act of 1937 
                pursuant to section 441 of the Stewart B. McKinney 
                Homeless Assistance Act; and

[[Page 111 STAT. 1409]]

                    (E) projects that do not qualify as eligible 
                multifamily housing projects pursuant to section 512(2) 
                of this subtitle.

                  Subtitle B--Miscellaneous Provisions

SEC. 531. REHABILITATION GRANTS FOR CERTAIN INSURED PROJECTS.

    Section 236 of the National Housing Act (12 U.S.C. 1715z-1) is 
amended by adding at the end the following:
    ``(s) Grant Authority.--
            ``(1) In general.--The Secretary may make grants for the 
        capital costs of rehabilitation to owners of projects that meet 
        the eligibility and other criteria set forth in, and in 
        accordance with, this subsection.
            ``(2) Project eligibility.--A project may be eligible for 
        capital grant assistance under this subsection--
                    ``(A) if--
                          ``(i) the project is or was insured under any 
                      provision of title II of the National Housing Act;
                          ``(ii) the project was assisted under section 
                      8 of the United States Housing Act of 1937 on the 
                      date of enactment of the Multifamily Assisted 
                      Housing Reform and Affordability Act of 1997; and
                          ``(iii) the project mortgage was not held by a 
                      State agency as of the date of enactment of the 
                      Multifamily Assisted Housing Reform and 
                      Affordability Act of 1997;
                    ``(B) if the project owner agrees to maintain the 
                housing quality standards as required by the Secretary;
                    ``(C)(i) if the Secretary determines that the owner 
                or purchaser of the project has not engaged in material 
                adverse financial or managerial actions or omissions 
                with regard to such project; or
                    ``(ii) if the Secretary elects to make such 
                determination, that the owner or purchaser of the 
                project has not engaged in material adverse financial or 
                managerial actions or 
                omissions with regard to other projects of such owner or 
                purchaser that are federally assisted or financed with a 
                loan from, or mortgage insured or guaranteed by, an 
                agency of the Federal Government;
                    ``(iii) material adverse financial or managerial 
                actions or omissions, as the terms are used in this 
                subparagraph, include--
                          ``(I) materially violating any Federal, State, 
                      or local law or regulation with regard to this 
                      project or any other federally assisted project, 
                      after receipt of notice and an opportunity to 
                      cure;
                          ``(II) materially breaching a contract for 
                      assistance under section 8 of the United States 
                      Housing Act of 1937, after receipt of notice and 
                      an opportunity to cure;
                          ``(III) materially violating any applicable 
                      regulatory or other agreement with the Secretary 
                      or a participating administrative entity, after 
                      receipt of notice and an opportunity to cure;
                          ``(IV) repeatedly failing to make mortgage 
                      payments at times when project income was 
                      sufficient to maintain and operate the property;

[[Page 111 STAT. 1410]]

                          ``(V) materially failing to maintain the 
                      property according to housing quality standards 
                      after receipt of notice and a reasonable 
                      opportunity to cure; or
                          ``(VI) committing any act or omission that 
                      would warrant suspension or debarment by the 
                      Secretary; and
                    ``(iv) the term `owner' as used in this 
                subparagraph, in addition to it having the same meaning 
                as in section 8(f) of the United States Housing Act of 
                1937, also means an affiliate of the owner; the term 
                `purchaser' as used in this subsection means any private 
                person or entity, including a cooperative, an agency of 
                the Federal Government, or a public housing agency, 
                that, upon purchase of the project, would have the legal 
                right to lease or sublease dwelling units in the 
                project, and also means an affiliate of the purchaser; 
                the terms `affiliate of the owner' and `affiliate of the 
                purchaser' means any person or entity (including, but 
                not limited to, a general partner or managing member, or 
                an officer of either) that controls an owner or 
                purchaser, is controlled by an owner or purchaser, or is 
                under common control with the owner or purchaser; the 
                term `control' means the direct or indirect power (under 
                contract, equity ownership, the right to vote or 
                determine a vote, or otherwise) to direct the financial, 
                legal, beneficial or other interests of the owner or 
                purchaser; and
                    ``(D) if the project owner demonstrates to the 
                satisfaction of the Secretary--
                          ``(i) using information in a comprehensive 
                      needs assessment, that capital grant assistance is 
                      needed for rehabilitation of the project; and
                          ``(ii) that project income is not sufficient 
                      to support such rehabilitation.
            ``(3) Eligible purposes.--The Secretary may make grants to 
        the owners of eligible projects for the purposes of--
                    ``(A) payment into project replacement reserves;
                    ``(B) debt service payments on non-Federal 
                rehabilitation loans; and
                    ``(C) payment of nonrecurring maintenance and 
                capital improvements, under such terms and conditions as 
                are determined by the Secretary.
            ``(4) Grant agreement.--
                    ``(A) In general.--The Secretary shall provide in 
                any grant agreement under this subsection that the grant 
                shall be terminated if the project fails to meet housing 
                quality standards, as applicable on the date of 
                enactment of the Multifamily Assisted Housing Reform and 
                Affordability Act of 1997, or any successor standards 
                for the physical conditions of projects, as are 
                determined by the Secretary.
                    ``(B) Affordability and use clauses.--The Secretary 
                shall include in a grant agreement under this subsection 
                a requirement for the project owners to maintain such 
                affordability and use restrictions as the Secretary 
                determines to be appropriate.
                    ``(C) Other terms.--The Secretary may include in a 
                grant agreement under this subsection such other terms 
                and conditions as the Secretary determines to be 
                necessary.
            ``(5) Delegation.--

[[Page 111 STAT. 1411]]

                    ``(A) In general.--In addition to the authorities 
                set forth in subsection (p), the Secretary may delegate 
                to State and local governments the responsibility for 
                the administration of grants under this subsection. Any 
                such government may carry out such delegated 
                responsibilities directly or under contracts.
                    ``(B) Administration costs.--In addition to other 
                eligible purposes, amounts of grants under this 
                subsection may be made available for costs of 
                administration under subparagraph (A).
            ``(6) Funding.--
                    ``(A) In general.--For purposes of carrying out this 
                subsection, the Secretary may make available amounts 
                that are unobligated amounts for contracts for interest 
                reduction payments--
                          ``(i) that were previously obligated for 
                      contracts for interest reduction payments under 
                      this section until the insured mortgage under this 
                      section was extinguished;
                          ``(ii) that become available as a result of 
                      the outstanding principal balance of a mortgage 
                      having been written down;
                          ``(iii) that are uncommitted balances within 
                      the limitation on maximum payments that may have 
                      been, before the date of enactment of the 
                      Multifamily Assisted Housing Reform and 
                      Affordability Act of 1997, permitted in any fiscal 
                      year; or
                          ``(iv) that become available from any other 
                      source.
                    ``(B) Liquidation authority.--The Secretary may 
                liquidate obligations entered into under this subsection 
                under section 1305(10) of title 31, United States Code.
                    ``(C) Capital grants.--In making capital grants 
                under the terms of this subsection, using the amounts 
                that the Secretary has recaptured from contracts for 
                interest reduction payments, the Secretary shall ensure 
                that the rates and amounts of outlays do not at any time 
                exceed the rates and amounts of outlays that would have 
                been experienced if the insured mortgage had not been 
                extinguished or the principal amount had not been 
                written down, and the interest reduction payments that 
                the Secretary has recaptured had continued in accordance 
                with the terms in effect immediately prior to such 
                extinguishment or write-down.''.

SEC. 532. <<NOTE: 42 USC 1437f note.>> GAO REPORT ON SECTION 8 RENTAL 
            ASSISTANCE FOR MULTIFAMILY HOUSING PROJECTS.

    Not later than the expiration of the 18-month period beginning on 
the date of the enactment of this Act, the Comptroller General of the 
United States shall submit a report to the Congress 
analyzing--
            (1) the housing projects for which project-based assistance 
        is provided under section 8 of the United States Housing Act of 
        1937, but which are not subject to a mortgage insured or held by 
        the Secretary under the National Housing Act;
            (2) how State and local housing finance agencies have 
        benefited financially from the rental assistance program under 
        section 8 of the United States Housing Act of 1937, including

[[Page 111 STAT. 1412]]

        any benefits from fees, bond financings, and mortgage 
        refinancings; and
            (3) the extent and effectiveness of State and local housing 
        finance agencies oversight of the physical and financial 
        management and condition of multifamily housing projects for 
        which project-based assistance is provided under section 8 of 
        the United States Housing Act of 1937.

                   Subtitle C--Enforcement Provisions

SEC. 541. <<NOTE: 12 USC 1735f-14 note.>> IMPLEMENTATION.

    (a) Issuance of Necessary Regulations.--Notwithstanding section 7(o) 
of the Department of Housing and Urban Development Act or part 10 of 
title 24, Code of Federal Regulations (as in existence on the date of 
enactment of this Act), the Secretary shall issue such regulations as 
the Secretary determines to be necessary to implement this subtitle and 
the amendments made by this subtitle in accordance with section 552 or 
553 of title 5, United States Code, as determined by the Secretary.
    (b) Use of Existing Regulations.--In implementing any provision of 
this subtitle, the Secretary may, in the discretion of the Secretary, 
provide for the use of existing regulations to the extent appropriate, 
without rulemaking.

SEC. 542. INCOME VERIFICATION.

    (a) Reinstitution of Requirements Regarding HUD Access to Certain 
Information of State Agencies.--
            (1) In general.--Section 303(i) of the <<NOTE: 42 USC 
        503.>> Social Security Act is amended by striking paragraph (5).
            (2) <<NOTE: 42 USC 503 note.>> Effective date.--The 
        amendment made by this subsection shall apply to any request for 
        information made after the date of the enactment of this Act.

    (b) Repeal of Termination Regarding Housing Assistance Programs.--
Section 6103(l)(7)(D) of the Internal Revenue Code of 1986 <<NOTE: 26 
USC 6103.>> is amended by striking the last sentence.

            Part 1--FHA Single Family and Multifamily Housing

SEC. 551. AUTHORIZATION TO IMMEDIATELY SUSPEND MORTGAGEES.

    Section 202(c)(3)(C) of the National Housing Act (12 U.S.C. 
1708(c)(3)(C)) is amended by inserting after the first sentence the 
following: ``Notwithstanding paragraph (4)(A), a suspension shall be 
effective upon issuance by the Board if the Board determines that there 
exists adequate evidence that immediate action is required to protect 
the financial interests of the Department or the public.''.

SEC. 552. EXTENSION OF EQUITY SKIMMING TO OTHER SINGLE FAMILY AND 
            MULTIFAMILY HOUSING PROGRAMS.

    Section 254 of the National Housing Act (12 U.S.C. 1715z-19) is 
amended to read as follows:

``SEC. 254. EQUITY SKIMMING PENALTY.

    ``(a) In General.--Whoever, as an owner, agent, or manager, or who 
is otherwise in custody, control, or possession of a multifamily project 
or a 1- to 4-family residence that is security for a

[[Page 111 STAT. 1413]]

mortgage note that is described in subsection (b), willfully uses or 
authorizes the use of any part of the rents, assets, proceeds, income, 
or other funds derived from property covered by that mortgage note for 
any purpose other than to meet reasonable and necessary expenses that 
include expenses approved by the Secretary if such approval is required, 
in a period during which the mortgage note is in default or the project 
is in a nonsurplus cash position, as defined by the regulatory agreement 
covering the property, or the mortgagor has failed to comply with the 
provisions of such other form of regulatory control imposed by the 
Secretary, shall be fined not more than $500,000, imprisoned not more 
than 5 years, or both.
    ``(b) Mortgage Notes Described.--For purposes of subsection (a), a 
mortgage note is described in this subsection if it--
            ``(1) is insured, acquired, or held by the Secretary 
        pursuant to this Act;
            ``(2) is made pursuant to section 202 of the Housing Act of 
        1959 (including property still subject to section 202 program 
        requirements that existed before the date of enactment of the 
        Cranston-Gonzalez National Affordable Housing Act); or
            ``(3) is insured or held pursuant to section 542 of the 
        Housing and Community Development Act of 1992, but is not 
        reinsured under section 542 of the Housing and Community 
        Development Act of 1992.''.

SEC. 553. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND OTHER 
            PARTICIPANTS IN FHA PROGRAMS.

    (a) Change to Section Title.--Section 536 of the National Housing 
Act (12 U.S.C. 1735f-14) is amended by striking the section heading and 
the section designation and inserting the following:

``SEC. 536. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND OTHER 
            PARTICIPANTS IN FHA PROGRAMS.''.

    (b) Expansion of Persons Eligible for Penalty.--Section 536(a) of 
the National Housing Act (12 U.S.C. 1735f-14(a)) is amended--
            (1) in paragraph (1), by striking the first sentence and 
        inserting the following: ``If a mortgagee approved under the 
        Act, a lender holding a contract of insurance under title I, or 
        a principal, officer, or employee of such mortgagee or lender, 
        or other person or entity participating in either an insured 
        mortgage or title I loan transaction under this Act or providing 
        assistance to the borrower in connection with any such loan, 
        including sellers of the real estate involved, borrowers, 
        closing agents, title companies, real estate agents, mortgage 
        brokers, appraisers, loan correspondents and dealers, knowingly 
        and materially violates any applicable provision of subsection 
        (b), the Secretary may impose a civil money penalty on the 
        mortgagee or lender, or such other person or entity, in 
        accordance with this section. The penalty under this paragraph 
        shall be in addition to any other available civil remedy or any 
        available criminal penalty, and may be imposed whether or not 
        the Secretary imposes other administrative sanctions.''; and
            (2) in paragraph (2)--
                    (A) in the first sentence, by inserting ``or such 
                other person or entity'' after ``lender''; and
                    (B) in the second sentence, by striking 
                ``provision'' and inserting ``the provisions''.

[[Page 111 STAT. 1414]]

    (c) Additional Violations for Mortgagees, Lenders, and Other 
Participants in FHA Programs.--Section 536(b) of the National Housing 
Act (12 U.S.C. 1735f-14(b)) is amended--
            (1) by redesignating paragraph (2) as paragraph (3);
            (2) by inserting after paragraph (1) the following:
            ``(2) The Secretary may impose a civil money penalty under 
        subsection (a) for any knowing and material violation by a 
        principal, officer, or employee of a mortgagee or lender, or 
        other participants in either an insured mortgage or title I loan 
        transaction under this Act or provision of assistance to the 
        borrower in connection with any such loan, including sellers of 
        the real estate involved, borrowers, closing agents, title 
        companies, real estate agents, mortgage brokers, appraisers, 
        loan correspondents, and dealers for--
                    ``(A) submission to the Secretary of information 
                that was false, in connection with any mortgage insured 
                under this Act, or any loan that is covered by a 
                contract of insurance under title I of this Act;
                    ``(B) falsely certifying to the Secretary or 
                submitting to the Secretary a false certification by 
                another person or entity; or
                    ``(C) failure by a loan correspondent or dealer to 
                submit to the Secretary information which is required by 
                regulations or directives in connection with any loan 
                that is covered by a contract of insurance under title 
                I.''; and
            (3) in paragraph (3), as redesignated, by striking ``or 
        paragraph (1)(F)'' and inserting ``or (F), or paragraph (2)(A), 
        (B), or (C)''.

    (d) Conforming and Technical Amendments.--Section 536 of the 
National Housing Act (12 U.S.C. 1735f-14) is amended--
            (1) in subsection (c)(1)(B), by inserting after ``lender'' 
        the following: ``or such other person or entity'';
            (2) in subsection (d)(1)--
                    (A) by inserting ``or such other person or entity'' 
                after ``lender''; and
                    (B) by striking ``part 25'' and inserting ``parts 24 
                and 25''; and
            (3) in subsection (e), by inserting ``or such other person 
        or entity'' after ``lender'' each place that term appears.

                   Part 2--FHA Multifamily Provisions

SEC. 561. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS, OFFICERS, 
            DIRECTORS, AND CERTAIN MANAGING AGENTS OF MULTIFAMILY 
            PROJECTS.

    (a) Civil Money Penalties Against Multifamily Mortgagors.--Section 
537 of the National Housing Act (12 U.S.C. 1735f-15) is amended--
            (1) in subsection (b)(1), by striking ``on that mortgagor'' 
        and inserting ``on that mortgagor, on a general partner of a 
        partnership mortgagor, or on any officer or director of a 
        corporate mortgagor'';
            (2) in subsection (c)--
                    (A) by striking the subsection heading and inserting 
                the following:

    ``(c) Other Violations.--''; and
                    (B) in paragraph (1)--

[[Page 111 STAT. 1415]]

                          (i) by striking ``Violations.--The Secretary 
                      may'' and all that follows through the colon and 
                      inserting the following:
                    ``(A) Liable parties.--The Secretary may also impose 
                a civil money penalty under this section on--
                          ``(i) any mortgagor of a property that 
                      includes 5 or more living units and that has a 
                      mortgage insured, coinsured, or held pursuant to 
                      this Act;
                          ``(ii) any general partner of a partnership 
                      mortgagor of such property;
                          ``(iii) any officer or director of a corporate 
                      mortgagor;
                          ``(iv) any agent employed to manage the 
                      property that has an identity of interest with the 
                      mortgagor, with the general partner of a 
                      partnership mortgagor, or with any officer or 
                      director of a corporate mortgagor of such 
                      property; or
                          ``(v) any member of a limited liability 
                      company that is the mortgagor of such property or 
                      is the general partner of a limited partnership 
                      mortgagor or is a partner of a general partnership 
                      mortgagor.
                    ``(B) Violations.--A penalty may be imposed under 
                this section upon any liable party under subparagraph 
                (A) that knowingly and materially takes any of the 
                following actions:'';
                          (ii) in subparagraph (B), as designated by 
                      clause (i), by redesignating the subparagraph 
                      designations (A) through (L) as clauses (i) 
                      through (xii), respectively;
                          (iii) by adding after clause (xii), as 
                      redesignated by clause (ii), the following:
                          ``(xiii) Failure to maintain the premises, 
                      accommodations, any living unit in the project, 
                      and the grounds and equipment appurtenant thereto 
                      in good repair and condition in accordance with 
                      regulations and requirements of the Secretary, 
                      except that nothing in this clause shall have the 
                      effect of altering the provisions of an existing 
                      regulatory agreement or federally insured mortgage 
                      on the property.
                          ``(xiv) Failure, by a mortgagor, a general 
                      partner of a partnership mortgagor, or an officer 
                      or director of a corporate mortgagor, to provide 
                      management for the project that is acceptable to 
                      the Secretary pursuant to regulations and 
                      requirements of the Secretary.
                          ``(xv) Failure to provide access to the books, 
                      records, and accounts related to the operations of 
                      the mortgaged property and of the project.''; and
                          (iv) in the last sentence, by deleting ``of 
                      such agreement'' and inserting ``of this 
                      subsection'';
            (3) in subsection (d)--
                    (A) in paragraph (1)(B), by inserting after 
                ``mortgagor'' the following: ``, general partner of a 
                partnership mortgagor, officer or director of a 
                corporate mortgagor, or identity of interest agent 
                employed to manage the property''; and
                    (B) by adding at the end the following:
            ``(5) Payment of penalty.--No payment of a civil money 
        penalty levied under this section shall be payable out of 
        project income.'';

[[Page 111 STAT. 1416]]

            (4) in subsection (e)(1), by deleting ``a mortgagor'' and 
        inserting ``an entity or person'';
            (5) in subsection (f), by inserting after ``mortgagor'' each 
        place such term appears the following: ``, general partner of a 
        partnership mortgagor, officer or director of a corporate 
        mortgagor, or identity of interest agent employed to manage the 
        property'';
            (6) by striking the heading of subsection (f) and inserting 
        the following: ``Civil Money Penalties Against Multifamily 
        Mortgagors, General Partners of Partnership Mortgagors, Officers 
        and Directors of Corporate Mortgagors, and Certain Managing 
        Agents''; and
            (7) by adding at the end the following:

    ``(k) Identity of Interest Managing Agent.--In this section, the 
terms `agent employed to manage the property that has an identity of 
interest' and `identity of interest agent' mean an entity--
            ``(1) that has management responsibility for a project;
            ``(2) in which the ownership entity, including its general 
        partner or partners (if applicable) and its officers or 
        directors (if applicable), has an ownership interest; and
            ``(3) over which the ownership entity exerts effective 
        control.''.

    (b) <<NOTE: Regulations. 12 USC 1735f-15 note.>> Implementation.--
            (1) Public comment.--The Secretary shall implement the 
        amendments made by this section by regulation issued after 
        notice and opportunity for public comment. The notice shall seek 
        comments primarily as to the definitions of the terms 
        ``ownership interest in'' and ``effective control'', as those 
        terms are used in the definition of the terms ``agent employed 
        to manage the property that has an identity of interest'' and 
        ``identity of interest agent''.
            (2) <<NOTE: Publication.>> Timing.--A proposed rule 
        implementing the amendments made by this section shall be 
        published not later than 1 year after the date of enactment of 
        this Act.

    (c) <<NOTE: 12 USC 1735f-15 note.>> Applicability of Amendments.--
The amendments made by subsection (a) shall apply only with respect to--
            (1) violations that occur on or after the effective date of 
        the final regulations implementing the amendments made by this 
        section; and
            (2) in the case of a continuing violation (as determined by 
        the Secretary of Housing and Urban Development), any portion of 
        a violation that occurs on or after that date.

SEC. 562. CIVIL MONEY PENALTIES FOR NONCOMPLIANCE WITH 
            SECTION 8 HAP CONTRACTS.

    (a) Basic Authority.--Title I of the United States Housing Act of 
1937 (42 U.S.C. 1437 et seq.) is amended--
            (1) by designating the second section designated as section 
        27 (as added by section 903(b) of Public Law 104-193 (110 Stat. 
        2348)) <<NOTE: 42 USC 1437z.>> as section 28; and
            (2) by adding at the end the following:

``SEC. 29. <<NOTE: 42 USC 1437z-1.>> CIVIL MONEY PENALTIES AGAINST 
            SECTION 8 OWNERS.

    ``(a) In General.--
            ``(1) Effect on other remedies.--The penalties set forth in 
        this section shall be in addition to any other available civil 
        remedy or any available criminal penalty, and may be

[[Page 111 STAT. 1417]]

        imposed regardless of whether the Secretary imposes other 
        administrative sanctions.
            ``(2) Failure of secretary.--The Secretary may not impose 
        penalties under this section for a violation, if a material 
        cause of the violation is the failure of the Secretary, an agent 
        of the Secretary, or a public housing agency to comply with an 
        existing agreement.

    ``(b) Violations of Housing Assistance Payment Contracts for Which 
Penalty May Be Imposed.--
            ``(1) Liable parties.--The Secretary may impose a civil 
        money penalty under this section on--
                    ``(A) any owner of a property receiving project-
                based assistance under section 8;
                    ``(B) any general partner of a partnership owner of 
                that property; and
                    ``(C) any agent employed to manage the property that 
                has an identity of interest with the owner or the 
                general partner of a partnership owner of the property.
            ``(2) Violations.--A penalty may be imposed under this 
        section for a knowing and material breach of a housing 
        assistance payments contract, including the following--
                    ``(A) failure to provide decent, safe, and sanitary 
                housing pursuant to section 8; or
                    ``(B) knowing or willful submission of false, 
                fictitious, or fraudulent statements or requests for 
                housing assistance payments to the Secretary or to any 
                department or agency of the United States.
            ``(3) Amount of penalty.--The amount of a penalty imposed 
        for a violation under this subsection, as determined by the 
        Secretary, may not exceed $25,000 per violation.

    ``(c) <<NOTE: Regulations.>> Agency Procedures.--
            ``(1) Establishment.--The Secretary shall issue regulations 
        establishing standards and procedures governing the imposition 
        of civil money penalties under subsection (b). These standards 
        and procedures--
                    ``(A) shall provide for the Secretary or other 
                department official to make the determination to impose 
                the penalty;
                    ``(B) shall provide for the imposition of a penalty 
                only after the liable party has received notice and the 
                opportunity for a hearing on the record; and
                    ``(C) may provide for review by the Secretary of any 
                determination or order, or interlocutory ruling, arising 
                from a hearing and judicial review, as provided under 
                subsection (d).
            ``(2) Final orders.--
                    ``(A) In general.--If a hearing is not requested 
                before the expiration of the 15-day period beginning on 
                the date on which the notice of opportunity for hearing 
                is received, the imposition of a penalty under 
                subsection (b) shall constitute a final and unappealable 
                determination.
                    ``(B) Effect of review.--If the Secretary reviews 
                the determination or order, the Secretary may affirm, 
                modify, or reverse that determination or order.
                    ``(C) Failure to review.--If the Secretary does not 
                review that determination or order before the expiration 
                of the 90-day period beginning on the date on which the

[[Page 111 STAT. 1418]]

                determination or order is issued, the determination or 
                order shall be final.
            ``(3) Factors in determining amount of penalty.--In 
        determining the amount of a penalty under subsection (b), the 
        Secretary shall take into consideration--
                    ``(A) the gravity of the offense;
                    ``(B) any history of prior offenses by the violator 
                (including offenses occurring before the enactment of 
                this section);
                    ``(C) the ability of the violator to pay the 
                penalty;
                    ``(D) any injury to tenants;
                    ``(E) any injury to the public;
                    ``(F) any benefits received by the violator as a 
                result of the violation;
                    ``(G) deterrence of future violations; and
                    ``(H) such other factors as the Secretary may 
                establish by regulation.
            ``(4) Payment of penalty.--No payment of a civil money 
        penalty levied under this section shall be payable out of 
        project income.

    ``(d) Judicial Review of Agency Determination.--Judicial review of 
determinations made under this section shall be carried out in 
accordance with section 537(e) of the National Housing Act.
    ``(e) Remedies for Noncompliance.--
            ``(1) Judicial intervention.--
                    ``(A) In general.--If a person or entity fails to 
                comply with the determination or order of the Secretary 
                imposing a civil money penalty under subsection (b), 
                after the determination or order is no longer subject to 
                review as provided by subsections (c) and (d), the 
                Secretary may request the Attorney General of the United 
                States to bring an action in an appropriate United 
                States district court to obtain a monetary judgment 
                against that person or entity and such other relief as 
                may be available.
                    ``(B) Fees and expenses.--Any monetary judgment 
                awarded in an action brought under this paragraph may, 
                in the discretion of the court, include the attorney's 
                fees and other expenses incurred by the United States in 
                connection with the action.
            ``(2) Nonreviewability of determination or order.--In an 
        action under this subsection, the validity and appropriateness 
        of the determination or order of the Secretary imposing the 
        penalty shall not be subject to review.

    ``(f) Settlement by Secretary.--The Secretary may compromise, 
modify, or remit any civil money penalty which may be, or has been, 
imposed under this section.
    ``(g) Deposit of Penalties.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, if the mortgage covering the property receiving assistance 
        under section 8 is insured or was formerly insured by the 
        Secretary, the Secretary shall apply all civil money penalties 
        collected under this section to the appropriate insurance fund 
        or funds established under this Act, as determined by the 
        Secretary.
            ``(2) Exception.--Notwithstanding any other provision of 
        law, if the mortgage covering the property receiving assistance 
        under section 8 is neither insured nor formerly insured by

[[Page 111 STAT. 1419]]

        the Secretary, the Secretary shall make all civil money 
        penalties collected under this section available for use by the 
        appropriate office within the Department for administrative 
        costs related to enforcement of the requirements of the various 
        programs administered by the Secretary.

    ``(h) Definitions.--In this section--
            ``(1) the term `agent employed to manage the property that 
        has an identity of interest' means an entity--
                    ``(A) that has management responsibility for a 
                project;
                    ``(B) in which the ownership entity, including its 
                general partner or partners (if applicable), has an 
                ownership interest; and
                    ``(C) over which such ownership entity exerts 
                effective control; and
            ``(2) the term `knowing' means having actual knowledge of or 
        acting with deliberate ignorance of or reckless disregard for 
        the prohibitions under this section.''.

    (b) <<NOTE: 42 USC 1437z-1 note.>> Applicability.--The amendments 
made by subsection (a) shall apply only with respect to--
            (1) violations that occur on or after the effective date of 
        final regulations implementing the amendments made by this 
        section; and
            (2) in the case of a continuing violation (as determined by 
        the Secretary of Housing and Urban Development), any portion of 
        a violation that occurs on or after such date.

    (c) <<NOTE: 42 USC 1437z-1 note.>> Implementation.--
            (1) Regulations.--
                    (A) In general.--The Secretary shall implement the 
                amendments made by this section by regulation issued 
                after notice and opportunity for public comment.
                    (B) Comments sought.--The notice under subparagraph 
                (A) shall seek comments as to the definitions of the 
                terms ``ownership interest in'' and ``effective 
                control'', as such terms are used in the definition of 
                the term ``agent employed to manage such property that 
                has an identity of interest''.
            (2) <<NOTE: Publication.>> Timing.--A proposed rule 
        implementing the amendments made by this section shall be 
        published not later than 1 year after the date of enactment of 
        this Act.

SEC. 563. EXTENSION OF DOUBLE DAMAGES REMEDY.

    Section 421 of the Housing and Community Development Act of 1987 (12 
U.S.C. 1715z-4a) is amended--
            (1) in subsection (a)(1)--
                    (A) in the first sentence, by striking ``Act; or 
                (B)'' and inserting the following: ``Act; (B) a 
                regulatory agreement that applies to a multifamily 
                project whose mortgage is insured or held by the 
                Secretary under section 202 of the Housing Act of 1959 
                (including property subject to section 202 of such Act 
                as it existed before enactment of the Cranston-Gonzalez 
                National Affordable Housing Act of 1990); (C) a 
                regulatory agreement or such other form of regulatory 
                control as may be imposed by the Secretary that applies 
                to mortgages insured or held by the Secretary under 
                section 542 of the Housing and Community Development Act 
                of 1992, but not reinsured under section 542

[[Page 111 STAT. 1420]]

                of the Housing and Community Development Act of 1992; or 
                (D)''; and
                    (B) in the second sentence, by inserting after 
                ``agreement'' the following: ``, or such other form of 
                regulatory control as may be imposed by the 
                Secretary,'';
            (2) in subsection (a)(2), by inserting after ``Act,'' the 
        following: ``under section 202 of the Housing Act of 1959 
        (including section 202 of such Act as it existed before 
        enactment of the Cranston-Gonzalez National Affordable Housing 
        Act of 1990) and under section 542 of the Housing and Community 
        Development Act of 1992,'';
            (3) in subsection (b), by inserting after ``agreement'' the 
        following: ``, or such other form of regulatory control as may 
        be imposed by the Secretary,'';
            (4) in subsection (c)--
                    (A) in the first sentence, by inserting after 
                ``agreement'' the following: ``, or such other form of 
                regulatory control as may be imposed by the 
                Secretary,''; and
                    (B) in the second sentence, by inserting before the 
                period the following: ``or, in the case of any project 
                for which the mortgage is held by the Secretary under 
                section 202 of the Housing Act of 1959 (including 
                property subject to section 202 of such Act as it 
                existed before enactment of the Cranston-Gonzalez 
                National Affordable Housing Act of 1990), to the project 
                or to the Department for use by the appropriate office 
                within the Department for administrative costs related 
                to enforcement of the requirements of the various 
                programs administered by the Secretary, as 
                appropriate''; and
            (5) in subsection (d), by inserting after ``agreement'' the 
        following: ``, or such other form of regulatory control as may 
        be imposed by the Secretary,''.

SEC. 564. OBSTRUCTION OF FEDERAL AUDITS.

    Section 1516(a) of title 18, United States Code, is amended by 
inserting after ``under a contract or subcontract,'' the following: ``or 
relating to any property that is security for a mortgage note that is 
insured, guaranteed, acquired, or held by the Secretary of Housing and 
Urban Development pursuant to any Act administered by the Secretary,''.

   Subtitle D--Office of Multifamily Housing Assistance Restructuring

SEC. 571. <<NOTE: 42 USC 1437f note.>> ESTABLISHMENT OF OFFICE OF 
            MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING.

    There is hereby established an office within the Department of 
Housing and Urban Development, which shall be known as the Office of 
Multifamily Housing Assistance Restructuring.

SEC. 572. <<NOTE: 42 USC 1437f note.>> DIRECTOR.

    (a) <<NOTE: President.>> Appointment.--The Office shall be under the 
management of a Director, who shall be appointed by the President by and 
with the advice and consent of the Senate, from among individuals who 
are citizens of the United States and have a demonstrated understanding 
of financing and mortgage restructuring for affordable multifamily 
housing. Not later than 60 days after the date

[[Page 111 STAT. 1421]]

of the enactment of this Act, the President shall submit to the Senate a 
nomination for initial appointment to the position of Director.
    (b) Vacancy.--A vacancy in the position of Director shall be filled 
in the manner in which the original appointment was made under 
subsection (a).

    (c) Deputy Director.--
            (1) In general.--The Office shall have a Deputy Director who 
        shall be appointed by the Director from among individuals who 
        are citizens of the United States and have a demonstrated 
        understanding of financing and mortgage restructuring for 
        affordable multifamily housing.
            (2) Functions.--The Deputy Director shall have such 
        functions, powers, and duties as the Director shall prescribe. 
        In the event of the death, resignation, sickness, or absence of 
        the Director, the Deputy Director shall serve as acting Director 
        until the return of the Director or the appointment of a 
        successor pursuant to subsection (b).

SEC. 573. <<NOTE: 42 USC 1437f note.>> DUTY AND AUTHORITY OF DIRECTOR.

    (a) Duty.--The Secretary shall, acting through the Director, 
administer the program of mortgage and rental assistance restructuring 
for eligible multifamily housing projects under subtitle A. During the 
period before the Director is appointed, the Secretary may carry out 
such program.
    (b) Authority.--The Director is authorized to make such 
determinations, take such actions, issue such regulations, and perform 
such functions assigned to the Director under law as the Director 
determines necessary to carry out such functions, subject to the review 
and approval of the Secretary. <<NOTE: Reports.>> The Director shall 
semiannually submit a report to the Secretary regarding the activities, 
determinations, and actions of the Director.

    (c) Delegation of Authority.--The Director may delegate to officers 
and employees of the Office (but not to contractors, subcontractors, or 
consultants) any of the functions, powers, and duties of the Director, 
as the Director considers appropriate.
    (d) Independence in Providing Information to Congress.--
            (1) In general.--Notwithstanding subsection (a) or (b), the 
        Director shall not be required to obtain the prior approval, 
        comment, or review of any officer or agency of the United States 
        before submitting to the Congress, or any committee or 
        subcommittee thereof, any reports, recommendations, testimony, 
        or comments if such submissions include a statement indicating 
        that the views expressed therein are those of the Director and 
        do not necessarily represent the views of the Secretary or the 
        President.
            (2) <<NOTE: Reports.>> Requirement.--If the Director 
        determines at any time that the Secretary is taking or has taken 
        any action that interferes with the ability of the Director to 
        carry out the duties of the Director under this Act or that 
        affects the administration of the program under subtitle A of 
        this Act in a manner that is inconsistent with the purposes of 
        this Act, including any proposed action by the Director, in the 
        discretion of the Director, that is overruled by the Secretary, 
        the Director shall immediately report directly to the Committee 
        on Banking and Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, and Urban 
        Affairs of the

[[Page 111 STAT. 1422]]

        Senate regarding such action. Notwithstanding subsection (a) or 
        (b), any determination or report under this paragraph by the 
        Director shall not be subject to prior review or approval of the 
        Secretary.

SEC. 574. <<NOTE: 42 USC 1437f note.>> PERSONNEL.

    (a) Office Personnel.--The Director may appoint and fix the 
compensation of such officers and employees of the Office as the 
Director considers necessary to carry out the functions of the Director 
and the Office. Officers and employees may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of title 5, 
United States Code, relating to classification and General Schedule pay 
rates.
    (b) Comparability of Compensation With Federal Banking Agencies.--In 
fixing and directing compensation under subsection (a), the Director 
shall consult with, and maintain comparability with compensation of 
officers and employees of the Federal Deposit Insurance Corporation.
    (c) Personnel of Other Federal Agencies.--In carrying out the duties 
of the Office, the Director may use information, services, staff, and 
facilities of any executive agency, independent agency, or department on 
a reimbursable basis, with the consent of such agency or department.
    (d) Outside Experts and Consultants.--The Director may procure 
temporary and intermittent services under section 3109(b) of title 5, 
United States Code.

SEC. 575. <<NOTE: 42 USC 1437f note.>> BUDGET AND FINANCIAL REPORTS.

    (a) Financial Operating Plans and Forecasts.--Before the beginning 
of each fiscal year, the Secretary shall submit a copy of the financial 
operating plans and forecasts for the Office to the Director of the 
Office of Management and Budget.
    (b) Reports of Operations.--As soon as practicable after the end of 
each fiscal year and each quarter thereof, the Secretary shall submit a 
copy of the report of the results of the operations of the Office during 
such period to the Director of the Office of Management and Budget.
    (c) Inclusion in President's Budget.--The annual plans, forecasts, 
and reports required under this section shall be included: (1) in the 
Budget of the United States in the appropriate form; and (2) in the 
congressional justifications of the Department of Housing and Urban 
Development for each fiscal year in a form determined by the Secretary.

SEC. 576. <<NOTE: 42 USC 1437f note.>> LIMITATION ON SUBSEQUENT 
            EMPLOYMENT.

    Neither the Director nor any former officer or employee of the 
Office who, while employed by the Office, was compensated at a rate in 
excess of the lowest rate for a position classified higher than GS-15 of 
the General Schedule under section 5107 of title 5, United States Code, 
may, during the 2-year period beginning on the date of separation from 
employment by the Office, accept compensation from any party (other than 
a Federal agency) having any financial interest in any mortgage 
restructuring and rental assistance sufficiency plan under subtitle A or 
comparable matter in which the Director or such officer or employee had 
direct participation or supervision.

[[Page 111 STAT. 1423]]

SEC. 577. <<NOTE: 42 USC 1437f note.>> AUDITS BY GAO.

    The Comptroller General shall audit the operations of the Office in 
accordance with generally accepted Government auditing standards. All 
books, records, accounts, reports, files, and property belonging to, or 
used by, the Office shall be made available to the Comptroller General. 
Audits under this section shall be conducted annually for the first 2 
fiscal years following the date of the enactment of this Act and as 
appropriate thereafter.

SEC. 578. <<NOTE: 42 USC 1437f note.>> SUSPENSION OF PROGRAM BECAUSE OF 
            FAILURE TO APPOINT DIRECTOR.

    (a) In General.--If, upon the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the initial 
appointment to the office of Director has not been made, the 
operation of the program under subtitle A shall immediately be suspended 
and such provisions shall not have any force or effect during the period 
that ends upon the making of such appointment.
    (b) Interim applicability of demonstration program.--
Notwithstanding any other provision of law, during the period referred 
to in subsection (a), the Secretary shall carry out sections 211 and 212 
of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997. For 
purposes of applying such sections pursuant to the authority under this 
section, the term ``expiring contract'' shall have the meaning given in 
such sections, except that such term shall also include any contract for 
project-based assistance under section 8 of the United States Housing 
Act of 1937 that expires during the period that the program is suspended 
under subsection (a).

SEC. 579. <<NOTE: 42 USC 1437f note.>> TERMINATION.

    (a) <<NOTE: Effective date.>> Repeal.--Subtitle A (except for 
section 524) and subtitle D (except for this section) are repealed 
effective October 1, 2001.

    (b) Exception.--Notwithstanding the repeal under subsection (a), the 
provisions of subtitle A (as in effect immediately before such repeal) 
shall apply with respect to projects and programs for which binding 
commitments have been entered into under this Act before October 1, 
2001.
    (c) Termination of Director and Office.--The Office of Multifamily 
Housing Assistance Restructuring and the position of Director of such 
Office shall terminate upon September 30, 2001.
    (d) Transfer of Authority.--Effective upon the termination under 
subsection (c), any authority and responsibilities assigned to the 
Director that remain applicable after such date pursuant to subsection 
(b) are transferred to the Secretary.

[[Page 111 STAT. 1424]]

    This Act may be cited as the ``Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1998''.

    Approved October 27, 1997.

LEGISLATIVE HISTORY--H.R. 2158 (S. 1034):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 105-175 (Comm. on Appropriations) and 105-297 (Comm. 
of Conference).
SENATE REPORTS: No. 105-53 accompanying S. 1034 (Comm. on 
Appropriations).
CONGRESSIONAL RECORD, Vol. 143 (1997):
            July 15, 16, considered and passed House.
            July 22, considered and passed Senate, amended.
            Oct. 8, House agreed to conference report.
            Oct. 9, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):
            Oct. 27, Presidential statement.
            Nov. 1, President's special message on line item veto.
FEDERAL REGISTER, Vol. 62 (1997):
            Nov. 4, Cancellation of items pursuant to the Line Item Veto 
                Act.

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