[105th Congress Public Law 276]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ276.105]
[[Page 112 STAT. 2461]]
Public Law 105-276
105th Congress
An Act
Making appropriations for the Departments of Veterans Affairs and
Housing and Urban Development, and for sundry independent agencies,
boards, commissions, corporations, and offices for the fiscal year
ending September 30, 1999, and for other purposes. <<NOTE: Oct. 21,
1998 - [H.R. 4194]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the following sums
are appropriated, out of any money in the Treasury not otherwise
appropriated, for the Departments of Veterans Affairs and Housing and
Urban Development, and for sundry independent agencies, boards,
commissions, corporations, and offices for the fiscal year ending
September 30, 1999, and for other purposes, namely:
TITLE <<NOTE: Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1999.>> I--
DEPARTMENT OF VETERANS AFFAIRS
Veterans Benefits Administration
compensation and pensions
(including transfers of funds)
For the payment of compensation benefits to or on behalf of veterans
and a pilot program for disability examinations as authorized by law (38
U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61); pension benefits
to or on behalf of veterans as authorized by law (38 U.S.C. chapters 15,
51, 53, 55, and 61; 92 Stat. 2508); and burial benefits, emergency and
other officers' retirement pay, adjusted-service credits and
certificates, payment of premiums due on commercial life insurance
policies guaranteed under the provisions of Article IV of the Soldiers'
and Sailors' Civil Relief Act of 1940, as amended, and for other
benefits as authorized by law (38 U.S.C. 107, 1312, 1977, and 2106,
chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat. 122,
123; 45 Stat. 735; 76 Stat. 1198), $21,857,058,000, to remain available
until expended: Provided, That not to exceed $24,534,000 of the amount
appropriated shall be reimbursed to ``General operating expenses'' and
``Medical care'' for necessary expenses in implementing those provisions
authorized in the Omnibus Budget Reconciliation Act of 1990, and in the
Veterans' Benefits Act of 1992 (38 U.S.C. chapters 51, 53, and 55), the
funding source for which is specifically provided as the ``Compensation
and pensions'' appropriation: Provided further, That such sums as may be
earned on an actual qualifying patient basis, shall be reimbursed to
``Medical facilities revolving fund'' to augment the funding of
individual medical facilities for nursing home care provided to
pensioners as authorized.
[[Page 112 STAT. 2462]]
readjustment benefits
For the payment of readjustment and rehabilitation benefits to or on
behalf of veterans as authorized by 38 U.S.C. chapters 21, 30, 31, 34,
35, 36, 39, 51, 53, 55, and 61, $1,175,000,000, to remain available
until expended: Provided, That funds shall be available to pay any court
order, court award or any compromise settlement arising from litigation
involving the vocational training program authorized by section 18 of
Public Law 98-77, as amended.
veterans insurance and indemnities
For military and naval insurance, national service life insurance,
servicemen's indemnities, service-disabled veterans insurance, and
veterans mortgage life insurance as authorized by 38 U.S.C. chapter 19;
70 Stat. 887; 72 Stat. 487, $46,450,000, to remain available until
expended.
veterans housing benefit program fund program account
(including transfer of funds)
For the cost of direct and guaranteed loans, such sums as may be
necessary to carry out the program, as authorized by 38 U.S.C. chapter
37, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
during fiscal year 1999, within the resources available, not to exceed
$300,000 in gross obligations for direct loans are authorized for
specially adapted housing loans: Provided further, That during 1999 any
moneys that would be otherwise deposited into or paid from the Loan
Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or the Direct
Loan Revolving Fund shall be deposited into or paid from the Veterans
Housing Benefit Program Fund: Provided further, That any balances in the
Loan Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or the
Direct Loan Revolving Fund on the effective date of this Act may be
transferred to and merged with the Veterans Housing Benefit Program
Fund.
In addition, for administrative expenses to carry out the direct and
guaranteed loan programs, $159,121,000, which may be transferred to and
merged with the appropriation for ``General operating expenses''.
education loan fund program account
(including transfer of funds)
For the cost of direct loans, $1,000, as authorized by 38 U.S.C.
3698, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize gross obligations for the
principal amount of direct loans not to exceed $3,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, $206,000, which may be transferred to and merged
with the appropriation for ``General operating expenses''.
[[Page 112 STAT. 2463]]
vocational rehabilitation loans program account
(including transfer of funds)
For the cost of direct loans, $55,000, as authorized by 38 U.S.C.
chapter 31, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize gross obligations for the
principal amount of direct loans not to exceed $2,401,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, $400,000, which may be transferred to and merged
with the appropriation for ``General operating expenses''.
native american veteran housing loan program account
(including transfer of funds)
For administrative expenses to carry out the direct loan program
authorized by 38 U.S.C. chapter 37, subchapter V, as amended, $515,000,
which may be transferred to and merged with the appropriation for
``General operating expenses''.
Veterans Health Administration
medical care
(including transfer of funds)
For necessary expenses for the maintenance and operation of
hospitals, nursing homes, and domiciliary facilities; for furnishing, as
authorized by law, inpatient and outpatient care and treatment to
beneficiaries of the Department of Veterans Affairs, including care and
treatment in facilities not under the jurisdiction of the Department;
and furnishing recreational facilities, supplies, and equipment;
funeral, burial, and other expenses incidental thereto for beneficiaries
receiving care in the Department; administrative expenses in support of
planning, design, project management, real property acquisition and
disposition, construction and renovation of any facility under the
jurisdiction or for the use of the Department; oversight, engineering
and architectural activities not charged to project cost; repairing,
altering, improving or providing facilities in the several hospitals and
homes under the jurisdiction of the Department, not otherwise provided
for, either by contract or by the hire of temporary employees and
purchase of materials; uniforms or allowances therefor, as authorized by
5 U.S.C. 5901-5902; aid to State homes as authorized by 38 U.S.C. 1741;
administrative and legal expenses of the Department for collecting and
recovering amounts owed the Department as authorized under 38 U.S.C.
chapter 17, and the Federal Medical Care Recovery Act, 42 U.S.C. 2651 et
seq.; and not to exceed $8,000,000 to fund cost comparison studies as
referred to in 38 U.S.C. 8110(a)(5), $17,306,000,000, plus
reimbursements: Provided, That of the funds made available under this
heading, $778,000,000 is for the equipment and land and structures
object classifications only, which amount shall not become available for
obligation until August 1, 1999, and shall remain available until
September 30, 2000: Provided further, That of the funds made available
under this heading,
[[Page 112 STAT. 2464]]
not to exceed $27,420,000 may be transferred to and merged with the
appropriation for ``General operating expenses'': Provided further, That
of the funds made available under this heading, up to $10,000,000 shall
be for implementation of the Primary Care Providers Incentive Act,
contingent upon enactment of authorizing legislation.
In addition, in conformance with Public Law 105-33 establishing the
Department of Veterans Affairs Medical Care Collections Fund, such sums
as may be deposited to such Fund pursuant to 38 U.S.C. 1729A may be
transferred to this account, to remain available until expended for the
purposes of this account.
medical and prosthetic research
For necessary expenses in carrying out programs of medical and
prosthetic research and development as authorized by 38 U.S.C. chapter
73, to remain available until September 30, 2000, $316,000,000, plus
reimbursements: Provided, That of the funds made available under this
heading, $6,000,000 is for the Musculoskeletal Disease Center, which
amount shall remain available for obligation until expended.
medical administration and miscellaneous operating expenses
For necessary expenses in the administration of the medical,
hospital, nursing home, domiciliary, construction, supply, and research
activities, as authorized by law; administrative expenses in support of
planning, design, project management, architectural, engineering, real
property acquisition and disposition, construction and renovation of any
facility under the jurisdiction or for the use of the Department of
Veterans Affairs, including site acquisition; engineering and
architectural activities not charged to project cost; and research and
development in building construction technology, $63,000,000, plus
reimbursements.
general post fund, national homes
(including transfer of funds)
For the cost of direct loans, $7,000, as authorized by Public Law
102-54, section 8, which shall be transferred from the ``General post
fund'': Provided, That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congressional Budget
Act of 1974, as amended: Provided further, That these funds are
available to subsidize gross obligations for the principal amount of
direct loans not to exceed $70,000.
In addition, for administrative expenses to carry out the direct
loan programs, $54,000, which shall be transferred from the ``General
post fund'', as authorized by Public Law 102-54, section 8.
Departmental Administration
general operating expenses
For necessary operating expenses of the Department of Veterans
Affairs, not otherwise provided for, including uniforms or allowances
therefor; not to exceed $25,000 for official reception and
representation expenses; hire of passenger motor vehicles; and
[[Page 112 STAT. 2465]]
reimbursement of the General Services Administration for security guard
services, and the Department of Defense for the cost of overseas
employee mail, $855,661,000: Provided, That funds under this heading
shall be available to administer the Service Members Occupational
Conversion and Training Act.
national cemetery system
(including transfer of funds)
For necessary expenses for the maintenance and operation of the
National Cemetery System, not otherwise provided for, including uniforms
or allowances therefor; cemeterial expenses as authorized by law;
purchase of six passenger motor vehicles for use in cemeterial
operations; and hire of passenger motor vehicles, $92,006,000: Provided,
That of the amount made available under this heading, not to exceed
$90,000 may be transferred to and merged with the appropriation for
``General operating expenses''.
office of inspector general
(including transfer of funds)
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended, $36,000,000:
Provided, That of the amount made available under this heading, not to
exceed $30,000 may be transferred to and merged with the appropriation
for ``General operating expenses''.
construction, major projects
(including transfer of funds)
For constructing, altering, extending and improving any of the
facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, or for any of the purposes set forth in sections 316,
2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38,
United States Code, including planning, architectural and engineering
services, maintenance or guarantee period services costs associated with
equipment guarantees provided under the project, services of claims
analysts, offsite utility and storm drainage system construction costs,
and site acquisition, where the estimated cost of a project is
$4,000,000 or more or where funds for a project were made available in a
previous major project appropriation, $142,300,000, to remain available
until expended: Provided, That except for advance planning of projects
funded through the advance planning fund and the design of projects
funded through the design fund, none of these funds shall be used for
any project which has not been considered and approved by the Congress
in the budgetary process: Provided further, That funds provided in this
appropriation for fiscal year 1999, for each approved project shall be
obligated: (1) by the awarding of a construction documents contract by
September 30, 1999; and <<NOTE: Reports.>> (2) by the awarding of a
construction contract by September 30, 2000: Provided further, That the
Secretary shall promptly report in writing to the Committees on
Appropriations any approved major construction project in which
obligations are not incurred within the time limitations established
above: Provided further, That no funds from any other account
[[Page 112 STAT. 2466]]
except the ``Parking revolving fund'', may be obligated for
constructing, altering, extending, or improving a project which was
approved in the budget process and funded in this account until one year
after substantial completion and beneficial occupancy by the Department
of Veterans Affairs of the project or any part thereof with respect to
that part only: Provided further, That not to exceed $125,000 may be
transferred to the Pershing Hall Revolving Fund, codified at section
493(d) of title 36, United States Code: Provided further, <<NOTE: 36 USC
2400 note.>> That during fiscal year 1999, or in subsequent fiscal
years, the ``Construction, major projects'' account shall be reimbursed,
in the amount transferred, from other funds as they become part of the
Pershing Hall Revolving Fund.
construction, minor projects
For constructing, altering, extending, and improving any of the
facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, including planning, architectural and engineering
services, maintenance or guarantee period services costs associated with
equipment guarantees provided under the project, services of claims
analysts, offsite utility and storm drainage system construction costs,
and site acquisition, or for any of the purposes set forth in sections
316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title
38, United States Code, where the estimated cost of a project is less
than $4,000,000, $175,000,000, to remain available until expended, along
with unobligated balances of previous ``Construction, minor projects''
appropriations which are hereby made available for any project where the
estimated cost is less than $4,000,000: Provided, That funds in this
account shall be available for: (1) repairs to any of the nonmedical
facilities under the jurisdiction or for the use of the Department which
are necessary because of loss or damage caused by any natural disaster
or catastrophe; and (2) temporary measures necessary to prevent or to
minimize further loss by such causes.
parking revolving fund
For the parking revolving fund as authorized by 38 U.S.C. 8109,
income from fees collected, to remain available until expended, which
shall be available for all authorized expenses except operations and
maintenance costs, which will be funded from ``Medical care''.
grants for construction of state extended care facilities
For grants to assist States to acquire or construct State nursing
home and domiciliary facilities and to remodel, modify or alter existing
hospital, nursing home and domiciliary facilities in State homes, for
furnishing care to veterans as authorized by 38 U.S.C. 8131-8137,
$90,000,000, to remain available until expended.
grants for the construction of state veterans cemeteries
For grants to aid States in establishing, expanding, or improving
State veteran cemeteries as authorized by 38 U.S.C. 2408, $10,000,000,
to remain available until expended.
[[Page 112 STAT. 2467]]
administrative provisions
(including transfer of funds)
Sec. 101. Any appropriation for fiscal year 1999 for ``Compensation
and pensions'', ``Readjustment benefits'', and ``Veterans insurance and
indemnities'' may be transferred to any other of the mentioned
appropriations.
Sec. 102. Appropriations available to the Department of Veterans
Affairs for fiscal year 1999 for salaries and expenses shall be
available for services authorized by 5 U.S.C. 3109.
Sec. 103. No appropriations in this Act for the Department of
Veterans Affairs (except the appropriations for ``Construction, major
projects'', ``Construction, minor projects'', and the ``Parking
revolving fund'') shall be available for the purchase of any site for or
toward the construction of any new hospital or home.
Sec. 104. No appropriations in this Act for the Department of
Veterans Affairs shall be available for hospitalization or examination
of any persons (except beneficiaries entitled under the laws bestowing
such benefits to veterans, and persons receiving such treatment under 5
U.S.C. 7901-7904 or 42 U.S.C. 5141-5204), unless reimbursement of cost
is made to the ``Medical care'' account at such rates as may be fixed by
the Secretary of Veterans Affairs.
Sec. 105. Appropriations available to the Department of Veterans
Affairs for fiscal year 1999 for ``Compensation and pensions'',
``Readjustment benefits'', and ``Veterans insurance and indemnities''
shall be available for payment of prior year accrued obligations
required to be recorded by law against the corresponding prior year
accounts within the last quarter of fiscal year 1998.
Sec. 106. Appropriations accounts available to the Department of
Veterans Affairs for fiscal year 1999 shall be available to pay prior
year obligations of corresponding prior year appropriations accounts
resulting from title X of the Competitive Equality Banking Act, Public
Law 100-86, except that if such obligations are from trust fund accounts
they shall be payable from ``Compensation and pensions''.
Sec. 107. Notwithstanding any other provision of law, during fiscal
year 1999, the Secretary of Veterans Affairs shall, from the National
Service Life Insurance Fund (38 U.S.C. 1920), the Veterans' Special Life
Insurance Fund (38 U.S.C. 1923), and the United States Government Life
Insurance Fund (38 U.S.C. 1955), reimburse the ``General operating
expenses'' account for the cost of administration of the insurance
programs financed through those accounts: Provided, That reimbursement
shall be made only from the surplus earnings accumulated in an insurance
program in fiscal year 1999, that are available for dividends in that
program after claims have been paid and actuarially determined reserves
have been set aside: Provided further, That if the cost of
administration of an insurance program exceeds the amount of surplus
earnings accumulated in that program, reimbursement shall be made only
to the extent of such surplus earnings: Provided further, That the
Secretary shall determine the cost of administration for fiscal year
1999, which is properly allocable to the provision of each insurance
program and to the provision of any total disability income insurance
included in such insurance program.
Sec. 108. In accordance with section 1557 of title 31, United States
Code, the following obligated balances shall be exempt from subchapter
IV of chapter 15 of such title and shall remain available
[[Page 112 STAT. 2468]]
for expenditure without fiscal year limitation: (1) funds obligated by
the Department of Veterans Affairs for lease numbers 084B-05-94, 084B-
07-94, and 084B-027-94 from funds made available in the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1994 (Public Law 103-124) under the heading
``Medical care''; and (2) funds obligated by the Department of Veterans
Affairs for lease number 084B-002-96 from funds made available in the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1995 (Public Law 103-327) under
the heading ``Medical care''.
Sec. 109. <<NOTE: W.G. (Bill) Hefner Salisbury Department of
Veterans Affairs Medical Center.>> (a) The Department of Veterans
Affairs medical center in Salisbury, North Carolina, is hereby
designated as the ``W.G. (Bill) Hefner Salisbury Department of Veterans
Affairs Medical Center''. Any reference to such center in any law,
regulation, map, document, record or other paper of the United States
shall be considered to be a reference to the ``W.G. (Bill) Hefner
Salisbury Department of Veterans Affairs Medical Center''.
(b) <<NOTE: Effective date.>> The provisions of subsection (a) are
effective on the latter of the first day of the 106th Congress or
January 3, 1999.
Sec. 110. Land Conveyance, Ridgecrest Children's Center, Alabama.
(a) Conveyance.--The Secretary of Veterans Affairs may convey, without
consideration, to the Board of Trustees of the University of Alabama,
all right, title, and interest of the United States in and to the parcel
of real property, including any improvements thereon, described in
subsection (b).
(b) Covered Parcel.--The parcel of real property to be conveyed
under subsection (a) is the following: A parcel of property lying in the
northeast quarter of the southwest quarter, section 28, township 21
south, range 9 west, Tuscaloosa County, Alabama, lying along and
adjacent to Ridgecrest (Brewer's Porch) Children's Center being more
particularly described as follows: As a point of commencement start at
the southeast corner of the north half of the southwest quarter run in
an easterly direction along an easterly projection of the north boundary
of the southeast quarter of the southwest quarter for a distance of
888.52 feet to a point; thence with a deflection angle to the left of
134 degrees 41 minutes run in a northwesterly direction for a distance
of 1164.38 feet to an iron pipe; thence with a deflection angle to the
left of 75 degrees 03 minutes run in a southwesterly direction for a
distance of 37.13 feet to the point of beginning of this parcel of
property; thence continue in this same southwesterly direction along the
projection of the chainlink fence for a distance of 169.68 feet to a
point; thence with an interior angle to the left of 63 degrees 16
minutes run in a northerly direction for a distance of 233.70 feet to a
point; thence with an interior angle to the left of 43 degrees 55
minutes run in a southeasterly direction for a distance of 218.48 feet
to the point of beginning, said parcel having an interior angle of
closure of 72 degrees 49 minutes, said parcel containing 0.40 acres more
or less, said parcel of property is also subject to all rights-of-way,
easements, and conveyances heretofore given for this parcel of property.
(c) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the conveyance under
subsection (a) as the Secretary considers appropriate to protect the
interests of the United States.
[[Page 112 STAT. 2469]]
Sec. 111. <<NOTE: Louis Stokes Cleveland Department of Veterans
Affairs Medical Center.>> (a) The Department of Veterans Affairs medical
center in Cleveland, Ohio, is hereby designated as the ``Louis Stokes
Cleveland Department of Veterans Affairs Medical Center''. Any reference
to such center in any law, regulation, map, document, record or other
paper of the United States shall be considered to be a reference to the
``Louis Stokes Cleveland Department of Veterans Affairs Medical
Center''.
(b) <<NOTE: Effective date.>> The provisions of subsection (a) are
effective on the latter of the first day of the 106th Congress or
January 3, 1999.
TITLE <<NOTE: Short title.>> II--DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
Public and Indian Housing
housing certificate fund
(including transfers and rescission of funds)
For activities and assistance to prevent the involuntary
displacement of low-income families, the elderly and the disabled
because of the loss of affordable housing stock, expiration of subsidy
contracts (other than contracts for which amounts are provided under
another heading in this Act) or expiration of use restrictions, or other
changes in housing assistance arrangements, and for other purposes,
$10,326,542,030, to remain available until expended: Provided, That of
the total amount provided under this heading, $9,600,000,000 shall be
for assistance under the United States Housing Act of 1937 (42 U.S.C.
1437) for use in connection with expiring or terminating section 8
subsidy contracts, for enhanced vouchers (including renewals) as
provided under the ``Preserving Existing Housing Investment'' account in
the Departments of Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1997 (Public Law 104-204),
and contracts entered into pursuant to section 441 of the Stewart B.
McKinney Homeless Assistance Act: Provided further, That in the case of
enhanced vouchers provided under this heading, if the income of a family
receiving assistance declines to a significant extent, the percentage of
income paid by the family for rent shall not exceed the greater of 30
percent or the percentage of income paid at the time of mortgage
prepayment: Provided further, That the Secretary may determine not to
apply section 8(o)(6)(B) of the Act to housing vouchers during fiscal
year 1999: Provided further, That of the total amount provided under
this heading, $433,542,030 shall be for section 8 rental assistance
under the United States Housing Act of 1937 including assistance to
relocate residents of properties: (1) that are owned by the Secretary
and being disposed of; or (2) that are discontinuing section 8 project-
based assistance; for relocation and replacement housing for units that
are demolished or disposed of from the public housing inventory (in
addition to amounts that may be available for such purposes under this
and other headings); for the conversion of section 23 projects to
assistance under section 8; for funds to carry out the family
unification program; and for the relocation of witnesses in connection
with efforts to combat crime in public and assisted housing pursuant to
a request from a law enforcement or prosecution agency: Provided
further, That of the total amount made available in the preceding
proviso, $40,000,000 shall be made available to nonelderly disabled
[[Page 112 STAT. 2470]]
families affected by the designation of a public housing development
under section 7 of such Act, the establishment of preferences in
accordance with section 651 of the Housing and Community Development Act
of 1992 (42 U.S.C. 1361l), or the restriction of occupancy to elderly
families in accordance with section 658 of such Act, and to the extent
the Secretary determines that such amount is not needed to fund
applications for such affected families, to other nonelderly disabled
families: Provided further, That the amount made available under the
fifth proviso under the heading ``Prevention of Resident Displacement''
in title II of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1997, Public
Law 104-204, shall also be made available to nonelderly disabled
families affected by the restriction of occupancy to elderly families in
accordance with section 658 of the Housing and Community Development Act
of 1992: Provided further, That to the extent the Secretary determines
that the amount made available under the fifth proviso under the heading
``Prevention of Resident Displacement'' in title II of the Departments
of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1997, Public Law 104-204, is not needed to
fund applications for affected families described in the fifth proviso,
or in the preceding proviso under this heading in this Act, the amount
not needed shall be made available to other nonelderly disabled
families: Provided further, That of the total amount provided under this
heading, $10,000,000 shall be for Regional Opportunity Counseling:
Provided further, That all balances, as of September 30, 1998, remaining
in the ``Prevention of Resident Displacement'' account shall be
transferred to and merged with the amounts provided for those purposes
under this heading.
For tenant-based assistance under the United States Housing Act of
1937 to help eligible families make the transition from welfare to work,
$283,000,000 from the total amount provided under this heading, to be
administered by public housing agencies (including Indian tribes and
their tribally designated housing entities, as defined by the Secretary
of Housing and Urban Development), and to remain available until
expended: Provided, That families initially selected to receive
assistance under this paragraph: (1) shall be eligible to receive, shall
be currently receiving, or shall have received within the preceding two
years, assistance or services funded under the Temporary Assistance for
Needy Families (TANF) program under part A of title IV of the Social
Security Act or as part of a State's qualified State expenditure under
section 409(a)(7)(B)(i) of such Act; (2) shall be determined by the
agency to be families for which tenant-based housing assistance is
critical to successfully obtaining or retaining employment; and (3)
shall not already be receiving tenant-based assistance under the United
States Housing Act of 1937: Provided further, That each application
shall: (1) describe the proposed program, which shall be developed by
the public housing agency in consultation with the State, local or
Tribal entity administering the TANF program and the entity, if any,
administering the Welfare-to-Work grants allocated by the United States
Department of Labor pursuant to section 403(a)(5)(A) of the Social
Security Act, and which shall take into account the particular
circumstances of the community; (2) demonstrate that tenant-based
housing assistance is critical to the success of assisting eligible
families to obtain or retain employment; (3) specify the
[[Page 112 STAT. 2471]]
criteria for selecting among eligible families to receive housing
assistance under this paragraph; (4) describe the proposed strategy for
tenant counseling and housing search assistance and landlord outreach;
(5) include any requests for waivers of any administrative requirements
or any provisions of the United States Housing Act of 1937, with a
demonstration of how approval of the waivers would substantially further
the objective of this paragraph; (6) include certifications from the
State, local, or Tribal entity administering assistance under the TANF
program and from the entity, if any, administering the Welfare-to-Work
grants allocated by the United States Department of Labor, that the
entity supports the proposed program and will cooperate with the public
housing agency that administers the housing assistance to assure that
such assistance is coordinated with other welfare reform and welfare to
work initiatives; however, if either does not respond to the public
housing agency within a reasonable time period, its concurrence shall be
assumed, and if either objects to the application, its concerns shall
accompany the application to the Secretary, who shall take them into
account in this funding decision; and (7) include such other information
as the Secretary may require and meet such other requirements as the
Secretary may establish: Provided further, That the Secretary, after
consultation with the Secretary of Health and Human Services and the
Secretary of Labor, shall select public housing agencies to receive
assistance under this paragraph on a competitive basis, taking into
account the need for and quality of the proposed program (including
innovative approaches), the extent to which the assistance will be
coordinated with welfare reform and welfare to work initiatives, the
extent to which the application demonstrates that tenant-based
assistance is critical to the success of assisting eligible families to
obtain or retain employment; and other appropriate criteria established
by the Secretary: Provided further, That the Secretary may use up to one
percent of the amount available under this paragraph, directly or
indirectly, to conduct detailed evaluations of the effect of providing
assistance under this paragraph: Provided further, That of the amount
made available under this paragraph, at least $4,000,000 each shall be
made available for local self-sufficiency/welfare-to-work initiatives in
San Bernardino County, California; Cleveland, Ohio; Kansas City,
Missouri; Charlotte, North Carolina; Miami/Dade County, Florida; Prince
Georges County, Maryland; New York City, New York; and Anchorage,
Alaska.
From the sources and in the order hereinafter specified,
$1,650,000,000 is rescinded: Provided, That the first source shall be
amounts that are available or may be recaptured from project-based
contracts for section 8 assistance that expired or were terminated
during fiscal year 1999 or any prior year: Provided further, That after
all amounts that are available or may be recaptured from the first
source have been exhausted, the second source shall be unobligated
amounts from amendments to contracts for project-based section 8
assistance, other than contracts for projects developed under section
202 of the Housing Act of 1959, other than amounts described as the
fourth source, in the fourth proviso in this paragraph, that are carried
over into 1999: Provided further, That after all amounts that are
available from the second source are exhausted, the third source shall
be amounts recaptured from section 8 reserves in the section 8 moderate
rehabilitation program: Provided further, That after all amounts that
are available or
[[Page 112 STAT. 2472]]
may be recaptured from the third source have been exhausted, the fourth
source shall be all unobligated amounts for project-based assistance
that are earmarked under the third proviso under this heading in Public
Law 105-65, 111 Stat. 1351 (approved October 27, 1997): Provided
further, That any amounts that are available or recaptured in connection
with the first or third provisos of this paragraph that are in the
Annual Contributions for Assisted Housing account, and are required to
be rescinded by this paragraph, shall be rescinded from the Annual
Contributions for Assisted Housing account.
public housing capital fund
(including transfers of funds)
For the Public Housing Capital Fund Program for modernization of
existing public housing projects as authorized under section 14 of the
United States Housing Act of 1937, as amended (42 U.S.C. 1437),
$3,000,000,000, to remain available until expended: Provided, That of
the total amount, up to $100,000,000 shall be for carrying out
activities under section 6( j) of such Act and technical assistance for
the inspection of public housing units, contract expertise, and training
and technical assistance directly or indirectly, under grants,
contracts, or cooperative agreements, to assist in the oversight and
management of public housing (whether or not the housing is being
modernized with assistance under this proviso) or tenant-based
assistance, including, but not limited to, an annual resident survey,
data collection and analysis, training and technical assistance by or to
officials and employees of the Department and of public housing agencies
and to residents in connection with the public housing programs and for
lease adjustments to section 23 projects: Provided further, That of the
amount available under this heading, up to $5,000,000 shall be for the
Tenant Opportunity Program: Provided further, That all balances, as of
September 30, 1998, of funds heretofore provided for section 673 public
housing service coordinators shall be transferred to and merged with
amounts made available under this heading.
public housing operating fund
For payments to public housing agencies for operating subsidies for
low-income housing projects as authorized by section 9 of the United
States Housing Act of 1937, as amended (42 U.S.C. 1437g),
$2,818,000,000, to remain available until expended.
drug elimination grants for low-income housing
(including transfer of funds)
For grants to public housing agencies and Indian tribes and their
tribally designated housing entities for use in eliminating crime in
public housing projects authorized by 42 U.S.C. 11901-11908, for grants
for federally assisted low-income housing authorized by 42 U.S.C. 11909,
and for drug information clearinghouse services authorized by 42 U.S.C.
11921-11925, $310,000,000, to remain available until expended, of which
$10,000,000 shall be for grants, technical assistance, contracts and
other assistance, training, and program assessment and execution for or
on behalf of public housing agencies, resident organizations, and Indian
tribes
[[Page 112 STAT. 2473]]
and their tribally designated housing entities (including the cost of
necessary travel for participants in such training), $10,000,000 shall
be used in connection with efforts to combat violent crime in public and
assisted housing under the Operation Safe Home Program administered by
the Inspector General of the Department of Housing and Urban
Development, $10,000,000 shall be provided to the Office of Inspector
General for Operation Safe Home; and $20,000,000 shall be available for
a program named the New Approach Anti-Drug program which will provide
competitive grants to entities managing or operating public housing
developments, federally assisted multifamily housing developments, or
other multifamily housing developments for low-income families supported
by non-Federal governmental entities or similar housing developments
supported by nonprofit private sources in order to provide or augment
security (including personnel costs), to assist in the investigation
and/or prosecution of drug related criminal activity in and around such
developments, and to provide assistance for the development of capital
improvements at such developments directly relating to the security of
such developments: Provided, That grants for the New Approach Anti-Drug
program shall be made on a competitive basis as specified in section 102
of the Department of Housing and Urban Development Reform Act of 1989:
Provided further, That the term ``drug-related crime'', as defined in 42
U.S.C. 11905(2), shall also include other types of crime as determined
by the Secretary: Provided further, That, notwithstanding section
5130(c) of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11909(c)), the
Secretary may determine not to use any such funds to provide public
housing youth sports grants.
revitalization of severely distressed public housing (hope vi)
For grants to public housing agencies for assisting in the
demolition of obsolete public housing projects or portions thereof, the
revitalization (where appropriate) of sites (including remaining public
housing units) on which such projects are located, replacement housing
which will avoid or lessen concentrations of very low-income families,
and tenant-based assistance in accordance with section 8 of the United
States Housing Act of 1937; and for providing replacement housing and
assisting tenants displaced by the demolition (including appropriate
homeownership down payment assistance for displaced tenants),
$625,000,000, to remain available until expended, of which the Secretary
may use up to $15,000,000 for technical assistance and contract
expertise, to be provided directly or indirectly by grants, contracts or
cooperative agreements, including training and cost of necessary travel
for participants in such training, by or to officials and employees of
the Department and of public housing agencies and to residents:
Provided, That no funds appropriated under this heading shall be used
for any purpose that is not provided for herein, in the United States
Housing Act of 1937, in the Appropriations Acts for the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies, for the fiscal years 1993, 1994, 1995, 1997, and 1998, and the
Omnibus Consolidated Rescissions and Appropriations Act of 1996:
Provided further, That for purposes of environmental review pursuant to
the National Environmental Policy Act of 1969, a grant under this
heading or under prior appropriations Acts for use for the purposes
under this heading shall be treated as assistance under title I of the
United States Housing Act of
[[Page 112 STAT. 2474]]
1937 and shall be subject to the regulations issued by the Secretary to
implement section 26 of such Act: Provided further, That none of such
funds shall be used directly or indirectly by granting competitive
advantage in awards to settle litigation or pay judgments, unless
expressly permitted herein.
native american housing block grants
(including transfers of funds)
For the Native American Housing Block Grants program, as authorized
under title I of the Native American Housing Assistance and Self-
Determination Act of 1996 (Public Law 104-330), $620,000,000, to remain
available until expended, of which $6,000,000 shall be used to support
the inspection of Indian housing units, contract expertise, training,
and technical assistance in the oversight and management of Indian
housing and tenant-based assistance, including up to $200,000 for
related travel: Provided, That of the amount provided under this
heading, $6,000,000 shall be made available for the cost of guaranteed
notes and other obligations, as authorized by title VI of the Native
American Housing Assistance and Self-Determination Act of 1996:
Provided, further, That such costs, including the costs of modifying
such notes and other obligations, shall be as defined in section 502 of
the Congressional Budget Act of 1974, as amended: Provided, further,
That these funds are available to subsidize the total principal amount
of any notes and other obligations, any part of which is to be
guaranteed, not to exceed $54,600,000.
In addition, for administrative expenses to carry out the guaranteed
loan program, up to $200,000, which shall be transferred to and merged
with the appropriation for departmental salaries and expenses, to be
used only for the administrative costs of these guarantees: Provided,
That the funds made available in the first proviso in the preceding
paragraph are for a demonstration on ways to enhance economic growth, to
increase access to private capital, and to encourage the investment and
participation of traditional financial institutions in tribal and other
Native American areas.
indian housing loan guarantee fund program account
(including transfer of funds)
For the cost of guaranteed loans, as authorized by section 184 of
the Housing and Community Development Act of 1992 (106 Stat. 3739),
$6,000,000, to remain available until expended: Provided, That such
costs, including the costs of modifying such loans, shall be as defined
in section 502 of the Congressional Budget Act of 1974, as amended:
Provided further, That these funds are available to subsidize total loan
principal, any part of which is to be guaranteed, not to exceed
$68,881,000.
In addition, for administrative expenses to carry out the guaranteed
loan program, up to $400,000, which shall be transferred to and merged
with the appropriation for departmental salaries and expenses, to be
used only for the administrative costs of these guarantees.
[[Page 112 STAT. 2475]]
rural housing and economic development
(including transfer of funds)
For an Office of Rural Housing and Economic Development to be
established in the Department of Housing and Urban Development,
$25,000,000, to remain available until expended: Provided, That of the
amount under this heading, $4,000,000 shall be used to develop capacity
at the State and local level for developing rural housing and for
economic development, of which $1,000,000 shall be used to develop a
clearinghouse of ideas for innovative strategies for rural housing and
economic development and revitalization and of which $3,000,000 shall be
awarded by June 1, 1999 directly to local rural nonprofits, community
development corporations and Indian tribes to support capacity building
and technical assistance: Provided further, That of the amount under
this heading, $21,000,000 shall be awarded by June 1, 1999 to Indian
tribes, State housing finance agencies, State community and/or economic
development agencies, local rural nonprofits and community development
corporations to support innovative housing and economic development
activities in rural areas, of which $5,000,000 shall be awarded as seed
support for Indian tribes, nonprofits and community development
corporations that are located in areas that have limited capacity for
the development of rural housing and for economic development: Provided
further, That all grants shall be awarded on a competitive basis as
specified in section 102 of the HUD Reform Act: Provided further, That
all funds unobligated as of October 1, 1998 under the fifth paragraph of
the Community Development Block Grants account in the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriation Act, 1998 (Public Law 105-65; October 27, 1997)
shall be transferred to this account to be awarded to Indian tribes,
State housing finance agencies, State community and/or economic
development agencies, local rural nonprofits and community development
corporations for activities under this heading with any outstanding
earmarks for a State to be awarded to that State's housing finance
agency.
Community Planning and Development
housing opportunities for persons with aids
For carrying out the Housing Opportunities for Persons with AIDS
program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C.
12901), $215,000,000, to remain available until expended: Provided, That
the Secretary may use up to 1 percent of the funds under this heading
for technical <<NOTE: Reports.>> assistance: Provided further, That
within 30 days of the close of fiscal year 1999, the Secretary shall
submit a report to the Congress summarizing all technical assistance
provided during the fiscal year.
community development block grants
(including transfer of funds)
For grants to States and units of general local government and for
related expenses, not otherwise provided for, to carry out a community
development grants program as authorized by title I of the Housing and
Community Development Act of 1974, as
[[Page 112 STAT. 2476]]
amended (the ``Act'' herein) (42 U.S.C. 5301), $4,750,000,000, to remain
available until September 30, 2001: Provided, That $67,000,000 shall be
for grants to Indian tribes notwithstanding section 106(a)(1) of such
Act, $3,000,000 shall be available as a grant to the Housing Assistance
Council, $3,000,000 shall be available for the Organizing Committee for
the 1999 Special Olympics Summer Games to be used in support of related
activities in the Triangle Area of North Carolina, $1,800,000 shall be
available as a grant to the National American Indian Housing Council,
$50,000,000 shall be for grants pursuant to section 107 of the Act:
Provided further, That all funding decisions under section 107 except as
specified herein shall be subject to a reprogramming request unless
otherwise specified in accordance with the terms and conditions
specified in the joint explanatory statement of the committee of
conference accompanying this Act (H.R. 4194): Provided further, That
$27,500,000 shall be for grants pursuant to the Self Help Housing
Opportunity program, subject to authorization, of which $7,500,000 shall
be for capacity building efforts: Provided further, That not to exceed
20 percent of any grant made with funds appropriated herein (other than
a grant made available in this paragraph to the Housing Assistance
Council or the National American Indian Housing Council, or a grant
using funds under section 107(b)(3) of the Housing and Community
Development Act of 1974, as amended) shall be expended for ``Planning
and Management Development'' and ``Administration'' as defined in
regulations promulgated by the Department.
Of the amount made available under this heading, $15,000,000 shall
be made available for ``Capacity Building for Community Development and
Affordable Housing,'' for LISC and the Enterprise Foundation for
activities as authorized by section 4 of the HUD Demonstration Act of
1993 (Public Law 103-120), as in effect immediately before June 12,
1997, with not less than $5,000,000 of the funding to be used in rural
areas, including tribal areas.
Of the amount made available under this heading, $12,000,000 is for
the City of Oklahoma City, Oklahoma, for a revolving loan pool that
shall be subject to the following requirements and conditions: (1)
amounts in the pool shall be available only for the purposes of making
loans to carry out economic development activities that primarily
benefit the area in Oklahoma City bounded on the south by Robert S. Kerr
Avenue, on the north by North 13th Street, on the east by Oklahoma
Avenue, and on the west by Shartel Avenue, and covering costs involved
in administering the loan pool; (2) amounts provided under this
paragraph shall be available for use from the loan pool only to the
extent that the amounts contributed to the loan pool (or committed to be
contributed) from non-Federal sources equal or exceed two times the
amounts provided under this paragraph; (3) any repayments of principal
and interest from loans made by the pool shall be deposited in the pool
and available for use for loans in accordance with this paragraph; (4)
amounts in the pool may not be used to provide loans to any agency or
entity of the Federal Government or any State government or unit of
general local government; (5) amounts provided under this paragraph
shall be available for use from the loan pool only if the City of
Oklahoma City, Oklahoma agrees (to the satisfaction of the Secretary of
Housing and Urban Development) to deposit in the pool (for use for loans
in accordance with this paragraph) the net proceeds from any amounts
that are repaid
[[Page 112 STAT. 2477]]
to the City under loans made by the City using amounts provided under
this same heading under chapter III of title III of Public Law 104-19
(109 Stat. 253).
Of the amount provided under this heading, the Secretary of Housing
and Urban Development may use up to $55,000,000 for a public and
assisted housing self-sufficiency program, of which up to $5,000,000 may
be used for the Moving to Work Demonstration, and at least $20,000,000
shall be used for grants for service coordinators and congregate
services for the elderly and disabled: Provided, That for self-
sufficiency activities, the Secretary may make grants to public housing
agencies (including Indian tribes and their tribally designated housing
entities), nonprofit corporations, and other appropriate entities for a
supportive services program to assist residents of public and assisted
housing, former residents of such housing receiving tenant-based
assistance under section 8 of such Act (42 U.S.C. 1437f), and other low-
income families and individuals: Provided further, That the program
shall provide supportive services, principally for the benefit of public
housing residents, to the elderly and the disabled, and to families with
children where the head of household would benefit from the receipt of
supportive services and is working, seeking work, or is preparing for
work by participating in job training or educational programs: Provided
further, That the supportive services may include congregate services
for the elderly and disabled, service coordinators, and coordinated
education, training, and other supportive services, including case
management skills training, job search assistance, assistance related to
retaining employment, vocational and entrepreneurship development and
support programs, such as transportation, and child care: Provided
further, That the Secretary shall require applications to demonstrate
firm commitments of funding or services from other sources: Provided
further, That the Secretary shall select public and Indian housing
agencies to receive assistance under this heading on a competitive
basis, taking into account the quality of the proposed program,
including any innovative approaches, the extent of the proposed
coordination of supportive services, the extent of commitments of
funding or services from other sources, the extent to which the proposed
program includes reasonably achievable, quantifiable goals for measuring
performance under the program over a three-year period, the extent of
success an agency has had in carrying out other comparable initiatives,
and other appropriate criteria established by the Secretary (except that
this proviso shall not apply to renewal of grants for service
coordinators and congregate services for the elderly and disabled).
Of the amount made available under this heading, notwithstanding any
other provision of law, $42,500,000 shall be available for YouthBuild
program activities authorized by subtitle D of title IV of the Cranston-
Gonzalez National Affordable Housing Act, as amended, and such
activities shall be an eligible activity with respect to any funds made
available under this heading: Provided, That local YouthBuild programs
that demonstrate an ability to leverage private and nonprofit funding
shall be given a priority for YouthBuild funding: Provided further, That
up to $2,500,000 may be used for capacity buildings efforts.
Of the amount made available under this heading, $225,000,000 shall
be available for the Economic Development Initiative (EDI) to finance a
variety of efforts, including $190,000,000 for making
[[Page 112 STAT. 2478]]
grants for targeted economic investments in accordance with the terms
and conditions specified for such grants in the joint explanatory
statement of the committee of conference accompanying this Act.
Of the amount made available under this heading, $25,000,000 shall
be available for neighborhood initiatives that are utilized to improve
the conditions of distressed and blighted areas and neighborhoods, and
to determine whether housing benefits can be integrated more effectively
with welfare reform initiatives.
For the cost of guaranteed loans, $29,000,000, as authorized by
section 108 of the Housing and Community Development Act of 1974:
Provided, That such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act of
1974, as amended: Provided further, That these funds are available to
subsidize total loan principal, any part of which is to be guaranteed,
not to exceed $1,261,000,000, notwithstanding any aggregate limitation
on outstanding obligations guaranteed in section 108(k) of the Housing
and Community Development Act of 1974: Provided further, That in
addition, for administrative expenses to carry out the guaranteed loan
program, $1,000,000, which shall be transferred to and merged with the
appropriation for departmental salaries and expenses.
For <<NOTE: 42 USC 5305 note.>> any fiscal year, of the amounts made
available as emergency funds under the heading ``Community Development
Block Grants Fund'' and notwithstanding any other provision of law, not
more than $250,000 may be used for the non-Federal cost-share of any
project funded by the Secretary of the Army through the Corps of
Engineers.
brownfields redevelopment
For Economic Development Grants, as authorized by section 108(q) of
the Housing and Community Development Act of 1974, as amended, for
Brownfields redevelopment projects, $25,000,000, to remain available
until expended: Provided, That the Secretary of Housing and Urban
Development shall make these grants available on a competitive basis as
specified in section 102 of the Department of Housing and Urban
Development Reform Act of 1989.
home investment partnerships program
For the HOME investment partnerships program, as authorized under
title II of the Cranston-Gonzalez National Affordable Housing Act
(Public Law 101-625), as amended, $1,600,000,000, to remain available
until expended: Provided, That up to $7,000,000 of these funds shall be
available for the development and operation of integrated community
development management information systems: Provided further, That up to
$17,500,000 of these funds shall be available for Housing Counseling
under section 106 of the Housing and Urban Development Act of 1968.
homeless assistance grants
For the emergency shelter grants program (as authorized under
subtitle B of title IV of the Stewart B. McKinney Homeless Assistance
Act, as amended); the supportive housing program (as authorized under
subtitle C of title IV of such Act); the section 8 moderate
rehabilitation single room occupancy program (as authorized under
[[Page 112 STAT. 2479]]
the United States Housing Act of 1937, as amended) to assist homeless
individuals pursuant to section 441 of the Stewart B. McKinney Homeless
Assistance Act; and the shelter plus care program (as authorized under
subtitle F of title IV of such Act), $975,000,000, to remain available
until expended: Provided, That not less than 30 percent of these funds
shall be used for permanent housing, and all funding for services must
be matched by 25 percent in funding by each grantee: Provided further,
That the Secretary of Housing and Urban Development shall conduct a
review of any balances of amounts provided under this heading in this or
any previous appropriations Act that have been obligated but remain
unexpended and shall deobligate any such amounts that the Secretary
determines were obligated for contracts that are unlikely to be
performed and award such amounts during this fiscal year: Provided
further, That up to 1 percent of the funds appropriated under this
heading may be used for technical assistance and tracking systems needed
to carry out the directives provided in House Report 105-610.
Housing Programs
housing for special populations
For assistance for the purchase, construction, acquisition, or
development of additional public and subsidized housing units for low
income families not otherwise provided for, $854,000,000, to remain
available until expended: Provided, That of the total amount provided
under this heading, $660,000,000 shall be for capital advances,
including amendments to capital advance contracts, for housing for the
elderly, as authorized by section 202 of the Housing Act of 1959, as
amended, and for project rental assistance, and amendments to contracts
for project rental assistance, for the elderly under section 202(c)(2)
of the Housing Act of 1959, and for supportive services associated with
the housing; and $194,000,000 shall be for capital advances, including
amendments to capital advance contracts, for supportive housing for
persons with disabilities, as authorized by section 811 of the Cranston-
Gonzalez National Affordable Housing Act, for project rental assistance,
for amendments to contracts for project rental assistance, and
supportive services associated with the housing for persons with
disabilities as authorized by section 811 of such Act: Provided further,
That the Secretary may designate up to 25 percent of the amounts
earmarked under this paragraph for section 811 of such Act for tenant-
based assistance, as authorized under that section, including such
authority as may be waived under the next proviso, which assistance is
five years in duration: Provided further, That the Secretary may waive
any provision of section 202 of the Housing Act of 1959 and section 811
of the Cranston-Gonzalez National Affordable Housing Act (including the
provisions governing the terms and conditions of project rental
assistance and tenant-based assistance) that the Secretary determines is
not necessary to achieve the objectives of these programs, or that
otherwise impedes the ability to develop, operate or administer projects
assisted under these programs, and may make provision for alternative
conditions or terms where appropriate.
[[Page 112 STAT. 2480]]
flexible subsidy fund
(transfer of funds)
From the Rental Housing Assistance Fund, all uncommitted balances of
excess rental charges as of September 30, 1998, and any collections made
during fiscal year 1999, shall be transferred to the Flexible Subsidy
Fund, as authorized by section 236(g) of the National Housing Act, as
amended.
Federal Housing Administration
fha--mutual mortgage insurance program account
(including transfers of funds)
During fiscal year 1999, commitments to guarantee loans to carry out
the purposes of section 203(b) of the National Housing Act, as amended,
shall not exceed a loan principal of $110,000,000,000.
During fiscal year 1999, obligations to make direct loans to carry
out the purposes of section 204(g) of the National Housing Act, as
amended, shall not exceed $100,000,000: Provided, That the foregoing
amount shall be for loans to nonprofit and governmental entities in
connection with sales of single family real properties owned by the
Secretary and formerly insured under the Mutual Mortgage Insurance Fund.
For administrative expenses necessary to carry out the guaranteed
and direct loan program, $328,888,000, to be derived from the FHA-mutual
mortgage insurance guaranteed loans receipt account, of which not to
exceed $324,866,000 shall be transferred to the appropriation for
departmental salaries and expenses; and of which not to exceed
$4,022,000 shall be transferred to the appropriation for the Office of
Inspector General.
fha--general and special risk program account
(including transfers of funds)
For the cost of guaranteed loans, as authorized by sections 238 and
519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), including
the cost of loan guarantee modifications (as that term is defined in
section 502 of the Congressional Budget Act of 1974, as amended),
$81,000,000, to remain available until expended: Provided, That these
funds are available to subsidize total loan principal, any part of which
is to be guaranteed, of up to $18,100,000,000: Provided further, That
any amounts made available in any prior appropriations Act for the cost
(as such term is defined in section 502 of the Congressional Budget Act
of 1974) of guaranteed loans that are obligations of the funds
established under section 238 or 519 of the National Housing Act that
have not been obligated or that are deobligated shall be available to
the Secretary of Housing and Urban Development in connection with the
making of such guarantees and shall remain available until expended,
notwithstanding the expiration of any period of availability otherwise
applicable to such amounts.
Gross obligations for the principal amount of direct loans, as
authorized by sections 204(g), 207(l), 238, and 519(a) of the National
Housing Act, shall not exceed $50,000,000; of which not to exceed
[[Page 112 STAT. 2481]]
$30,000,000 shall be for bridge financing in connection with the sale of
multifamily real properties owned by the Secretary and formerly insured
under such Act; and of which not to exceed $20,000,000 shall be for
loans to nonprofit and governmental entities in connection with the sale
of single-family real properties owned by the Secretary and formerly
insured under such Act.
In addition, for administrative expenses necessary to carry out the
guaranteed and direct loan programs, $211,455,000, of which
$193,134,000, shall be transferred to the appropriation for departmental
salaries and expenses; and of which $18,321,000 shall be transferred to
the appropriation for the Office of Inspector General.
Government National Mortgage Association
guarantees of mortgage-backed securities loan guarantee program account
(including transfer of funds)
During fiscal year 1999, new commitments to issue guarantees to
carry out the purposes of section 306 of the National Housing Act, as
amended (12 U.S.C. 1721(g)), shall not exceed $150,000,000,000.
For administrative expenses necessary to carry out the guaranteed
mortgage-backed securities program, $9,383,000, to be derived from the
GNMA-guarantees of mortgage-backed securities guaranteed loan receipt
account, of which not to exceed $9,383,000 shall be transferred to the
appropriation for departmental salaries and expenses.
Policy Development and Research
research and technology
For contracts, grants, and necessary expenses of programs of
research and studies relating to housing and urban problems, not
otherwise provided for, as authorized by title V of the Housing and
Urban Development Act of 1970, as amended (12 U.S.C. 1701z-1 et seq.),
including carrying out the functions of the Secretary under section
1(a)(1)(i) of Reorganization Plan No. 2 of 1968, $47,500,000, to remain
available until September 30, 2000.
Fair Housing and Equal Opportunity
fair housing activities
For contracts, grants, and other assistance, not otherwise provided
for, as authorized by title VIII of the Civil Rights Act of 1968, as
amended by the Fair Housing Amendments Act of 1988, and section 561 of
the Housing and Community Development Act of 1987, as amended,
$40,000,000, to remain available until September 30, 2000, of which
$23,500,000 shall be to carry out activities pursuant to such section
561: Provided, That no funds made available under this heading shall be
used to lobby the executive or legislative branches of the Federal
Government in connection with a specific contract, grant or loan.
[[Page 112 STAT. 2482]]
Office of Lead Hazard Control
lead hazard reduction
For the Lead Hazard Reduction Program, as authorized by sections
1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of
1992, $80,000,000 to remain available until expended, of which
$2,500,000 shall be for CLEARCorps and $10,000,000 shall be for a
Healthy Homes Initiative, which shall be a program pursuant to sections
501 and 502 of the Housing and Urban Development Act of 1970 that shall
include research, studies, testing, and demonstration efforts, including
education and outreach concerning lead-based paint poisoning and other
housing-related environmental diseases and hazards.
Management and Administration
salaries and expenses
(including transfer of funds)
For necessary administrative and non-administrative expenses of the
Department of Housing and Urban Development, not otherwise provided for,
including not to exceed $7,000 for official reception and representation
expenses, $985,826,000, of which $518,000,000 shall be provided from the
various funds of the Federal Housing Administration, $9,383,000 shall be
provided from funds of the Government National Mortgage Association,
$1,000,000 shall be provided from the ``Community Development Grants
Program'' account, $200,000 shall be provided by transfer from the
``Title VI Indian Federal Guarantees Program'' account, and $400,000
shall be provided by transfer from the ``Indian Housing Loan Guarantee
Fund Program'' account: Provided, That the Department is prohibited from
employing more than 77 schedule C and 20 noncareer Senior Executive
Service employees.
office of inspector general
(including transfer of funds)
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended, $81,910,000,
of which $22,343,000 shall be provided from the various funds of the
Federal Housing Administration and $10,000,000 shall be provided from
the amount earmarked for Operation Safe Home in the ``Drug Elimination
Grants for Low-Income Housing'' account: Provided, That the Inspector
General shall have independent authority over all personnel issues
within the Office of Inspector General.
Office of Federal Housing Enterprise Oversight
salaries and expenses
(including transfer of funds)
For carrying out the Federal Housing Enterprise Financial Safety and
Soundness Act of 1992, $16,000,000, to remain available until expended,
to be derived from the Federal Housing Enterprise Oversight Fund:
Provided, That not to exceed such amount shall
[[Page 112 STAT. 2483]]
be available from the General Fund of the Treasury to the extent
necessary to incur obligations and make expenditures pending the receipt
of collections to the Fund: Provided further, That the General Fund
amount shall be reduced as collections are received during the fiscal
year so as to result in a final appropriation from the General Fund
estimated at not more than $0.
administrative provisions
public and assisted housing rents, preferences, and flexibility
Sec. 201. Section 201(a)(2) of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996 (42 U.S.C. 1437l note), is amended to read as
follows:
``(2) Applicability.--Section 14(q) of the United States
Housing Act of 1937 shall be effective only with respect to
assistance provided from funds made available for fiscal year
1999 or any preceding fiscal year, except that the authority in
the first sentence of section 14(q)(1) to use up to 10 percent
of the allocation of certain funds for any operating subsidy
purpose shall not apply to amounts made available for fiscal
years 1998 and 1999.''.
gse default loss protection
Sec. 202. (a) Section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act <<NOTE: 12 USC 1454.>> is amended in the first sentence
by--
(1) striking ``or'' at the end of clause (B);
(2) striking the period at the end of the first sentence and
inserting: ``; or (D) the mortgage is subject to default loss
protection that the Corporation determines is financially equal
or superior, on an individual or pooled basis, to the protection
provided by clause (C) of this sentence: Provided, That if the
Director of the Office of Federal Housing Enterprise Oversight
subsequently finds that such default loss protection determined
by the Corporation does not provide such equal or superior
protection, the Corporation shall provide such additional
default loss protection for such mortgage, as approved by the
Director of the Office of Federal Housing Enterprise Oversight,
necessary to provide such equal or superior protection.''.
(b) Section 1313(b) of the Federal Housing Enterprises Financial
Housing Safety and Soundness Act of 1992 <<NOTE: 12 USC 4513.>> is
amended by redesignating paragraphs (9), (10), and (11) as paragraphs
(10), (11), and (12), respectively, and inserting the following new
paragraph (9):
``(9) default loss protection levels under section
305(a)(2)(D) of the Federal Home Loan Mortgage Corporation
Act;''.
financing adjustment factors
Sec. 203. Fifty percent of the amounts of budget authority, or in
lieu thereof 50 percent of the cash amounts associated with such budget
authority, that are recaptured from projects described in section
1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of
1988 (Public Law 100-628, 102 Stat. 3224, 3268) shall be rescinded, or
in the case of cash, shall be remitted
[[Page 112 STAT. 2484]]
to the Treasury, and such amounts of budget authority or cash recaptured
and not rescinded or remitted to the Treasury shall be used by State
housing finance agencies or local governments or local housing agencies
with projects approved by the Secretary of Housing and Urban Development
for which settlement occurred after January 1, 1992, in accordance with
such section. Notwithstanding the previous sentence, the Secretary may
award up to 15 percent of the budget authority or cash recaptured and
not rescinded or remitted to the Treasury to provide project owners with
incentives to refinance their project at a lower interest rate.
fair housing and free speech
Sec. 204. None of the amounts made available under this Act may be
used during fiscal year 1999 to investigate or prosecute under the Fair
Housing Act any otherwise lawful activity engaged in by one or more
persons, including the filing or maintaining of a nonfrivolous legal
action, that is engaged in solely for the purpose of achieving or
preventing action by a government official or entity, or a court of
competent jurisdiction.
brownfields as eligible cdbg activity
Sec. 205. <<NOTE: 42 USC 5305 note.>> For fiscal years 1998, 1999,
and all fiscal years thereafter, States and entitlement communities may
use funds allocated under the community development block grants program
under title I of the Housing and Community Development Act of 1974 for
environmental cleanup and economic development activities related to
Brownfields projects in conjunction with the appropriate environmental
regulatory agencies, as if such activities were eligible under section
105(a) of such Act.
enhanced disposition authority
Sec. 206. Section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1997, is amended <<NOTE: 12 USC 1715z-11a.>> by striking ``fiscal
years 1997 and 1998'' and inserting ``fiscal years 1997, 1998, and
1999''.
housing opportunities for persons with aids grants
Sec. 207. (a) Eligibility.--Notwithstanding section 854(c)(1)(A) of
the AIDS Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any
amounts made available under this title for fiscal year 1999 that are
allocated under such section, the Secretary of Housing and Urban
Development shall allocate and make a grant, in the amount determined
under subsection (b), for any State that--
(1) received an allocation in a prior fiscal year under
clause (ii) of such section; and
(2) is not otherwise eligible for an allocation for fiscal
year 1999 under such clause (ii) because the areas in the State
outside of the metropolitan statistical areas that qualify under
clause (i) in fiscal year 1999 do not have the number of cases
of acquired immunodeficiency syndrome required under such
clause.
(b) Amount.--The amount of the allocation and grant for any State
described in subsection (a) shall be an amount based on the cumulative
number of AIDS cases in the areas of that State that are outside of
metropolitan statistical areas that qualify under
[[Page 112 STAT. 2485]]
clause (i) of such section 854(c)(1)(A) in fiscal year 1999 in
proportion to AIDS cases among cities and States that qualify under
clauses (i) and (ii) of such section and States deemed eligible under
subsection (a).
(c) Environmental Review.--For purposes of environmental review,
pursuant to the National Environmental Policy Act of 1969 and other
provisions of law that further the purposes of such Act, a grant under
the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.) from amounts
provided under this or prior Acts shall be treated as assistance for a
special project that is subject to section 305(c) of the Multifamily
Housing Property Disposition Reform Act of 1994 (42 U.S.C. 3547), and
shall be subject to the regulations issued by the Secretary to implement
such section. Where the grantee under the AIDS Housing Opportunity Act
is a nonprofit organization and the activity is proposed to be carried
out within the jurisdiction of an Indian tribe or the community of an
Alaska native village, the role of the State or unit of general local
government under sections 305(c)(1)-(3) of such Act may be carried out
by the Indian tribe or Alaska native village instead.
drawdown of funds
Sec. 208. Section 14(q)(1) of the United States Housing Act of 1937
(42 U.S.C. 1437l(q)(1)) is amended by inserting after the first sentence
the following sentence: ``Such assistance may involve the drawdown of
funds on a schedule commensurate with construction draws for deposit
into an interest earning escrow account to serve as collateral or credit
enhancement for bonds issued by a public agency for the construction or
rehabilitation of the development.''.
elimination of shopping incentive for voucher families who remain in
same unit upon initial receipt of assistance
Sec. 209. (a) Section 8(o)(2) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(2)) is amended by inserting the following new
sentence at the end: ``Notwithstanding the preceding sentence, for
families being admitted to the voucher program who remain in the same
unit or complex, where the rent (including the amount allowed for
utilities) does not exceed the payment standard, the monthly assistance
payment for any family shall be the amount by which such rent exceeds
the greater of 30 percent of the family's monthly adjusted income or 10
percent of the family's monthly income.''.
(b) <<NOTE: Effective date. 42 USC 1437f note.>> This section shall
take effect 60 days after the later of October 1, 1998 or the date of
the enactment of this Act.
renegotiation of performance funding system
Sec. 210. Section 9(a)(3)(A) of the United States Housing Act of
1937 (42 U.S.C. 1437g(a)(3)(A)) is amended--
(1) by inserting after the third sentence the following new
sentence to read as follows:
``Notwithstanding the preceding sentences, the Secretary may revise the
performance funding system in a manner that takes into account equity
among public housing agencies and that includes appropriate incentives
for sound management.''; and
[[Page 112 STAT. 2486]]
(2) in the last sentence, by inserting after ``vacant public
housing units'' the following: ``, or any substantial change
under the preceding sentence,''.
fha multifamily mortgage credit demonstrations
Sec. 211. Section 542 of the Housing and Community Development Act
of 1992 <<NOTE: 12 USC 1707 note.>> is amended--
(1) in subsection (b)(5) by adding before the period at the
end of the first sentence ``, and not more than an additional
25,000 units during fiscal year 1999'', and
(2) in the first sentence of subsection (c)(4) by striking
``1996 and'' and inserting ``1996,'' and by inserting after
``fiscal year 1997'' the following: ``and not more than an
additional 25,000 units during fiscal year 1999''.
calculation of downpayment
Sec. 212. Section 203(b)(10) of the <<NOTE: 12 USC 1709
note.>> National Housing Act is amended by--
(1) striking out ``Alaska and Hawaii'' and inserting in lieu
thereof ``Calculation of Downpayment''; and
(2) striking out in subparagraph (A) ``originated in the
State of Alaska or the State of Hawaii and endorsed for
insurance in fiscal years 1997 and 1998,'' and inserting in lieu
thereof ``executed for insurance in fiscal years 1998, 1999, and
2000''.
state cdbg idis funding
Sec. 213. During fiscal year 1999, from amounts received by a State
under section 106(d)(1) of the Housing and Community Development Act of
1974 for distribution in nonentitlement areas, the State may deduct an
amount, not to exceed the greater of 0.25 percent of the amount so
received or $50,000, for implementation of the integrated disbursement
and information system established by the Secretary, in addition to any
amounts used for this purpose from amounts retained by the State for
administrative expenses under section 106(d)(3)(A).
nursing home lease terms
Sec. 214. (a) Technical Correction.--Section 216 of the Departments
of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, <<NOTE: 12 USC 1715w.>> 1998, is amended by
striking out ``fifty years from the date'' and inserting in lieu thereof
``fifty years to run from the date''.
(b) Effective <<NOTE: 12 USC 1715w note.>> Date.--The amendment made
by subsection (a) shall be construed to have taken effect on October 27,
1997.
technical for emergency cdbg program
Sec. 215. For purposes of eligibility for funding under the heading
``Community Development Block Grants'' in the 1998 Supplemental
Appropriations and Rescissions Act (Public Law 105-174; May 1, 1998) the
term ``States'' shall be deemed to include ``Indian tribes'' as defined
under section 102(a)(17) of the Housing and Community Development Act of
1974 and Guam, the Northern
[[Page 112 STAT. 2487]]
Mariana Islands, the Virgin Islands, and American Samoa: Provided, That
amounts made available by this section are designated by the Congress as
an emergency requirement pursuant to section 251(b)(2)(A) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
use of home funds for public housing modernization
Sec. 216. Notwithstanding section 212(d)(5) of the Cranston-Gonzalez
National Affordable Housing Act, amounts made available to the City of
Bismarck, North Dakota, under subtitle A of title II of the Cranston-
Gonzalez National Affordable Housing Act for fiscal years 1998, 1999,
2000, 2001 or 2002, may be used to carry out activities authorized under
section 14 of the United States Housing Act of 1937 (42 U.S.C. 14371)
for the purpose of modernizing the Crescent Manor public housing project
located at 107 East Bowen Avenue, in Bismarck, North Dakota, if--
(1) the Burleigh County Housing Authority (or any successor
public housing agency that owns or operates the Crescent Manor
public housing project) has obligated all other Federal
assistance made available to that public housing agency for that
fiscal year; or
(2) the Secretary of Housing and Urban Development
authorizes the use of those amounts for the purpose of
modernizing that public housing project, which authorization may
be made with respect to one or more of those fiscal years.
cdbg and home exemption
Sec. 217. The City of Oxnard, California may use amounts available
to the City under title I of the Housing and Community Development Act
of 1974 and under subtitle A of title II of the Cranston-Gonzalez
National Affordable Housing Act to reimburse the city for its cost in
purchasing 19.89 acres of land, more or less, located at the northwest
corner of Lombard Street and Camino del Sol in the city, on the north
side of the 2100 block of Camino del Sol, for the purpose of providing
affordable housing. The procedures set forth in sections 104(g)(2) and
(3) of the Housing and Community Development Act of 1974 and sections
288(b) and (c) of the Cranston-Gonzalez National Affordable Housing Act
shall not apply to any release of funds for such reimbursement.
cdbg public services cap
Sec. 218. Section 105(a)(8) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by striking ``1998'' and
inserting ``1999''.
clarification of owner's right to prepay
Sec. 219. (a) Prepayment Right.--Notwithstanding section 211 of the
Housing and Community Development Act of 1987 or section 221 of the
Housing and Community Development Act of 1987 (as in effect pursuant to
section 604(c) of the Cranston-Gonzalez National Affordable Housing
Act), subject to subsection (b), with respect to any project that is
eligible low-income housing (as that term is defined in section 229 of
the Housing and Community Development Act of 1987)--
[[Page 112 STAT. 2488]]
(1) the owner of the project may prepay, and the mortgagee
may accept prepayment of, the mortgage on the project, and
(2) the owner may request voluntary termination of a
mortgage insurance contract with respect to such project and the
contract may be terminated notwithstanding any requirements
under sections 229 and 250 of the National Housing Act.
(b) Conditions.--Any prepayment of a mortgage or termination of an
insurance contract authorized under subsection (a) may be made--
(1) only to the extent that such prepayment or termination
is consistent with the terms and conditions of the mortgage on
or mortgage insurance contract for the project;
(2) only if the owner of the project involved agrees not to
increase the rent charges for any dwelling unit in the project
during the 60-day period beginning upon such prepayment or
termination; and
(3) only if the owner of the project provides notice of
intent to prepay or terminate, in such form as the Secretary of
Housing and Urban Development may prescribe, to each tenant of
the housing, the Secretary, and the chief executive officer of
the appropriate State or local government for the jurisdiction
within which the housing is located, not less than 150 days, but
not more than 270 days, before such prepayment or termination,
except that such requirement shall not apply to a prepayment or
termination that--
(A) occurs during the 150-day period immediately
following the date of the enactment of this Act;
(B) is necessary to effect conversion to ownership
by a priority purchaser (as defined in section 231(a) of
the Low-Income Housing Preservation and Resident
Ownership Act of 1990 (12 U.S.C. 4120(a)), or
(C) will otherwise ensure that the project will
continue to operate, at least until the maturity date of
the loan or mortgage, in a manner that will provide
rental housing on terms at least as advantageous to
existing and future tenants as the terms required by the
program under which the loan or mortgage was made or
insured prior to the proposed prepayment or termination.
public and assisted housing drug elimination act
Sec. 220. The Public and Assisted Housing Drug Elimination Act of
1990 is amended--
(1) <<NOTE: 42 USC 11902.>> in section 5123, by inserting
``Indian tribes'' before ``and private'';
(2) <<NOTE: 42 USC 11903.>> in section 5124(a)(7), by
inserting ``, an Indian tribe,'' before ``or tribally
designated'';
(3) <<NOTE: 42 USC 11904.>> in section 5125, by inserting
``an Indian tribe'' before ``a tribally designated''; and
(4) <<NOTE: 42 USC 11905.>> in section 5126, by adding at
the end the following new paragraph:
``(6) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4(12) of the Native American
Housing Assistance and Self Determination Act of 1996, 25 U.S.C.
4103(12).''.
[[Page 112 STAT. 2489]]
multifamily housing institute
Sec. 221. Notwithstanding any other provision of law, the Secretary
may, from time to time, as determined necessary to assist the Department
in managing its multifamily assets including analyzing, tracking and
evaluating its portfolio of FHA-insured and other mortgages and
properties and assisting the Department in understanding and reducing
the risk involved in its mortgage restructuring, insuring and
guaranteeing activities, provide data to, and purchase data from, any
nonprofit, industry supported, on-line provider of nationwide,
multifamily housing loan and property data services.
multifamily mortgage auctions
Sec. 222. <<NOTE: 12 USC 1715l.>> Section 221(g)(4)(C) of the
National Housing Act is amended--
(1) in the first sentence of clause (viii), by striking
``September 30, 1996'' and inserting ``December 31, 2002''; and
(2) by adding at the end the following:
``(ix) The authority of the Secretary to
conduct multifamily auctions under this paragraph
shall be effective for any fiscal year only to the
extent and in such amounts as are approved in
appropriations Acts for the costs of loan
guarantees (as defined in section 502 of the
Congressional Budget Act of 1974), including the
cost of modifying loans.''.
funding correction
Sec. 223. Notwithstanding any other provision of law, of the
$1,250,000 made available pursuant to Public Law 102-389 for economic
revitalization and infrastructure repair in Montpelier, Vermont,
$250,000 is available for the Central Vermont Revolving Loan Fund
administered by the Central Vermont Community Action Council.
annual report on management deficiencies
Sec. 224.(a) In General.--Section 203 of the National Housing Act
(12 U.S.C. 1709) is amended by adding at the end the following:
``(x) Management Deficiencies Report.--
``(1) In general.--Not later than 60 days after the date of
the enactment of this subsection, and annually thereafter, the
Secretary shall submit to Congress a report on the plan of the
Secretary to address each material weakness, reportable
condition, and noncompliance with an applicable law or
regulation (as defined by the Director of the Office of
Management and Budget) identified in the most recent audited
financial statement of the Federal Housing Administration
submitted under section 3515 of title 31, United States Code.
``(2) Contents of annual report.--Each report submitted
under paragraph (1) shall include--
``(A) an estimate of the resources, including staff,
information systems, and contract assistance, required
to address each material weakness, reportable condition,
and noncompliance with an applicable law or regulation
described in paragraph (1), and the costs associated
with those resources;
[[Page 112 STAT. 2490]]
``(B) an estimated timetable for addressing each
material weakness, reportable condition, and
noncompliance with an applicable law or regulation
described in paragraph (1); and
``(C) the progress of the Secretary in implementing
the plan of the Secretary included in the report
submitted under paragraph (1) for the preceding year,
except that this subparagraph does not apply to the
initial report submitted under paragraph (1).''.
Sec. 225. (a) Informed Consumer Choice.--Section 203(b)(2) of the
National Housing Act (12 U.S.C. 1709(b)(2)) is amended by adding at the
end the following:
``In conjunction with any loan insured under this section,
an original lender shall provide to each prospective borrower a
disclosure notice that provides a one page analysis of mortgage
products offered by that lender and for which the borrower would
qualify. This notice shall include: (i) a generic analysis
comparing the note rate (and associated interest payments),
insurance premiums, and other costs and fees that would be due
over the life of the loan for a loan insured by the Secretary
under this subsection with the note rates, insurance premiums
(if applicable), and other costs and fees that would be expected
to be due if the mortgagor obtained instead other mortgage
products offered by the lender and for which the borrower would
qualify with a similar loan-to-value ratio in connection with a
conventional mortgage (as that term is used in section 305(a)(2)
of the Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)) or section 302(b)(2) of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), as
applicable), assuming prevailing interest rates; and (ii) a
statement regarding when the mortgagor's requirement to pay the
mortgage insurance premiums for a mortgage insured under this
section would terminate or a statement that the requirement will
terminate only if the mortgage is refinanced, paid off, or
otherwise terminated.''.
(b) Regulation.--The <<NOTE: 12 USC 1709 note.>> Secretary of
Housing and Urban Development shall develop the disclosure notice under
subsection (a) within 150 days of the enactment through notice and
comment rulemaking.
Sec. 226. <<NOTE: 42 USC 1437 note.>> Funding of Certain Public
Housing.--Notwithstanding any other provision of law, no funds in this
Act or any other Act may hereafter be used by the Secretary of Housing
and Urban Development to determine allocations or provide assistance for
operating subsidies or modernization for certain State and city funded
and locally developed public housing units, as defined for purposes of a
statutory paragraph, notwithstanding the deeming by statute of such
units to be public housing units developed under the United States
Housing Act of 1937, unless such unit was so assisted before October 1,
1998.
section 236 program reform
Sec. 227. Section 236(g) of the National Housing Act, as amended by
section 221(c) of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act,
1997, <<NOTE: 12 USC 1715z-1.>> is amended to read as follows:
``(g) The project owner shall, as required by the Secretary,
accumulate, safeguard, and periodically pay the Secretary or such
[[Page 112 STAT. 2491]]
other entity as determined by the Secretary and upon such terms and
conditions as the Secretary deems appropriate, all rental charges
collected on a unit-by-unit basis in excess of the basic rental charges.
Unless otherwise directed by the Secretary, such excess charges shall be
credited to a reserve used by the Secretary to make additional
assistance payments as provided in paragraph (3) of subsection (f ).
Notwithstanding any other requirements of this subsection, an owner of a
project with a mortgage insured under this section, or a project
previously assisted under subsection (b) but without a mortgage insured
under this section if the project mortgage was insured under section 207
of this Act before July 30, 1998 pursuant to section 223(f ) of this Act
and assisted under subsection (b), may retain some or all of such excess
charges for project use if authorized by the Secretary and upon such
terms and conditions as established by the Secretary.''.
fha mortgage insurance increase
Sec. 228. (a) Subparagraph (A) of section 203(b)(2) of the National
Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by striking clause (ii)
and all that follows through the end of the subparagraph and inserting
the following:
``(ii) 87 percent of the dollar amount
limitation determined under section 305(a)(2) of
the Federal Home Loan Mortgage Corporation Act for
a residence of the applicable size; except that
the dollar amount limitation in effect for any
area under this subparagraph may not be less than
48 percent of the dollar limitation determined
under section 305(a)(2) of the Federal Home Loan
Mortgage Corporation Act for a residence of the
applicable size; and''.
(b) The first sentence in the matter following section
203(b)(2)(B)(iii) of the National Housing Act (12 U.S.C.
1709(b)(2)(B)(iii) is amended to read as follows: ``For purposes of the
preceding sentence, the term `area' means a metropolitan statistical
area as established by the Office of Management and Budget; and the
median 1-family house price for an area shall be equal to the median 1-
family house price of the county within the area that has the highest
such median price.''.
hope vi grant for hollander ridge
Sec. 229. If the Secretary rescinds the grant award of $20,000,000
made to the Housing Authority of Baltimore City for development efforts
at Hollander Ridge in Baltimore, Maryland, involving funds appropriated
for fiscal year 1996 under the heading ``Public Housing Demolition, Site
Revitalization, and Replacement Housing Grants'', all of the rescinded
grant amount shall be recaptured by the Secretary and added to the
amounts otherwise available under this heading. If, after the date of
any such recapture, the Housing Authority of Baltimore City applies in
response to a Notice of Funding Availability issued by the Secretary for
a grant from funds available under this heading (not to exceed the
amount recaptured) for development efforts at Hollander Ridge, then the
Secretary shall grant priority status to such application and approve
the grant award if the application meets the terms and criteria stated
in the Notice of Funding Availability.
[[Page 112 STAT. 2492]]
debt forgiveness
Sec. 230. The Secretary of Housing and Urban Development shall
cancel the indebtedness of the Town of Hobson City, Alabama, relating to
a public facilities loan under title II of the Housing Amendments of
1955, issued July 1, 1969 (Project No. ALA-01-PFL0139). The Town of
Hobson City hereby is relieved of all liability to the Federal
Government for the outstanding principal balance on such loan, for the
amount of accrued interest on such loan, and for any other fees and
charges payable in connection with such loan.
consideration of homeless grant application
Sec. 231. The Secretary shall consider without prejudice the
application submitted August 5, 1998 by the City of Wichita and Sedgwick
County, Kansas for assistance under the Continuum of Care Homeless
Assistance program pursuant to the Notice at 63 Federal Register 23988,
23999 (April 30, 1998) notwithstanding the August 4, 1998 due date for
such application, notwithstanding any provision that may be to the
contrary in section 102 of the Department of Housing and Urban
Development Reform Act of 1989.
cdbg service cap for miami
Sec. 232. Section 105(a)(8) of the Housing and Community Development
Act of 1974 <<NOTE: 42 USC 5305.>> is amended by striking ``fiscal year
1994'' and all that follows through the end of the paragraph and
inserting the following: ``each of fiscal years 1999, 2000, and 2001, to
the City of Miami, such city may use not more than 25 percent in each
fiscal year for activities under this paragraph;''.
TITLE <<NOTE: Short title.>> III--INDEPENDENT AGENCIES
American Battle Monuments Commission
salaries and expenses
For necessary expenses, not otherwise provided for, of the American
Battle Monuments Commission, including the acquisition of land or
interest in land in foreign countries; purchases and repair of uniforms
for caretakers of national cemeteries and monuments outside of the
United States and its territories and possessions; rent of office and
garage space in foreign countries; purchase (one for replacement only)
and hire of passenger motor vehicles; and insurance of official motor
vehicles in foreign countries, when required by law of such countries,
$26,431,000, to remain available until expended.
Chemical Safety and Hazard Investigation Board
salaries and expenses
For necessary expenses in carrying out activities pursuant to
section 112(r)(6) of the Clean Air Act, including hire of passenger
vehicles, and for services authorized by 5 U.S.C. 3109, but at rates for
individuals not to exceed the per diem equivalent to the maximum rate
payable for senior level positions under 5 U.S.C.
[[Page 112 STAT. 2493]]
5376, $6,500,000: Provided, That the Chemical Safety and Hazard
Investigation Board shall have not more than three career Senior
Executive Service positions.
Department of the Treasury
Community Development Financial Institutions
community development financial institutions
fund program account
For grants, loans, and technical assistance to qualifying community
development lenders, and administrative expenses of the Fund, including
services authorized by 5 U.S.C. 3109, but at rates for individuals not
to exceed the per diem rate equivalent to the rate for ES-3,
$80,000,000, to remain available until September 30, 2000, of which
$12,000,000 may be used for the cost of direct loans, and up to
$1,000,000 may be used for administrative expenses to carry out the
direct loan program: Provided, That the cost of direct loans, including
the cost of modifying such loans, shall be as defined in section 502 of
the Congressional Budget Act of 1974: Provided further, That these funds
are available to subsidize gross obligations for the principal amount of
direct loans not to exceed $32,000,000: Provided further, That not more
than $25,000,000 of the funds made available under this heading may be
used for programs and activities authorized in section 114 of the
Community Development Banking and Financial Institutions Act of 1994.
Consumer Product Safety Commission
salaries and expenses
For necessary expenses of the Consumer Product Safety Commission,
including hire of passenger motor vehicles, services as authorized by 5
U.S.C. 3109, but at rates for individuals not to exceed the per diem
rate equivalent to the maximum rate payable under 5 U.S.C. 5376,
purchase of nominal awards to recognize non-Federal officials'
contributions to Commission activities, and not to exceed $500 for
official reception and representation expenses, $47,000,000.
Corporation for National and Community Service
national and community service programs
operating expenses
(including transfer of funds)
For necessary expenses for the Corporation for National and
Community Service (referred to in the matter under this heading as the
``Corporation'') in carrying out programs, activities, and initiatives
under the National and Community Service Act of 1990 (referred to in the
matter under this heading as the ``Act'') (42 U.S.C. 12501 et seq.),
$425,500,000, to remain available until September 30, 2000: Provided,
That not more than $28,500,000 shall be available for administrative
expenses authorized under section 501(a)(4) of the Act (42 U.S.C.
12671(a)(4)) with not less
[[Page 112 STAT. 2494]]
than $3,000,000 targeted to administrative needs identified as urgent by
the Corporation without regard to the provisions of section 501(a)(4)(B)
of the Act: Provided further, That not more than $2,500 shall be for
official reception and representation expenses: Provided further, That
not more than $70,000,000, to remain available without fiscal year
limitation, shall be transferred to the National Service Trust account
for educational awards authorized under subtitle D of title I of the Act
(42 U.S.C. 12601 et seq.), of which not to exceed $5,000,000 shall be
available for national service scholarships for high school students
performing community service: Provided further, That not more than
$227,000,000 of the amount provided under this heading shall be
available for grants under the National Service Trust program authorized
under subtitle C of title I of the Act (42 U.S.C. 12571 et seq.)
(relating to activities including the AmeriCorps program), of which not
more than $40,000,000 may be used to administer, reimburse, or support
any national service program authorized under section 121(d)(2) of such
Act (42 U.S.C. 12581(d)(2)): Provided further, That not more than
$5,500,000 of the funds made available under this heading shall be made
available for the Points of Light Foundation for activities authorized
under title III of the Act (42 U.S.C. 12661 et seq.): Provided further,
That no funds shall be available for national service programs run by
Federal agencies authorized under section 121(b) of such Act (42 U.S.C.
12571(b)): Provided further, That to the maximum extent feasible, funds
appropriated under subtitle C of title I of the Act shall be provided in
a manner that is consistent with the recommendations of peer review
panels in order to ensure that priority is given to programs that
demonstrate quality, innovation, replicability, and sustainability:
Provided further, That not more than $18,000,000 of the funds made
available under this heading shall be available for the Civilian
Community Corps authorized under subtitle E of title I of the Act (42
U.S.C. 12611 et seq.): Provided further, That not more than $43,000,000
shall be available for school-based and community-based service-learning
programs authorized under subtitle B of title I of the Act (42 U.S.C.
12521 et seq.): Provided further, That not more than $28,500,000 shall
be available for quality and innovation activities authorized under
subtitle H of title I of the Act (42 U.S.C. 12853 et seq.): Provided
further, That not more than $5,000,000 shall be available for audits and
other evaluations authorized under section 179 of the Act (42 U.S.C.
12639): Provided further, That to the maximum extent practicable, the
Corporation shall increase significantly the level of matching funds and
in-kind contributions provided by the private sector, shall expand
significantly the number of educational awards provided under subtitle D
of title I, and shall reduce the total Federal costs per participant in
all programs.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended, $3,000,000.
[[Page 112 STAT. 2495]]
Court of Veterans Appeals
salaries and expenses
For necessary expenses for the operation of the United States Court
of Veterans Appeals as authorized by 38 U.S.C. 7251-7298, $10,195,000,
of which $865,000, shall be available for the purpose of providing
financial assistance as described, and in accordance with the process
and reporting procedures set forth, under this heading in Public Law
102-229.
Department of Defense--Civil
Cemeterial Expenses, Army
salaries and expenses
For necessary expenses, as authorized by law, for maintenance,
operation, and improvement of Arlington National Cemetery and Soldiers'
and Airmen's Home National Cemetery, including the purchase of one
passenger motor vehicle for replacement only, and not to exceed $1,000
for official reception and representation expenses, $11,666,000, to
remain available until expended.
Environmental Protection Agency
science and technology
(including transfer of funds)
For science and technology, including research and development
activities, which shall include research and development activities
under the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (CERCLA), as amended; necessary expenses for
personnel and related costs and travel expenses, including uniforms, or
allowances therefore, as authorized by 5 U.S.C. 5901-5902; services as
authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed
the per diem rate equivalent to the maximum rate payable for senior
level positions under 5 U.S.C. 5376; procurement of laboratory equipment
and supplies; other operating expenses in support of research and
development; construction, alteration, repair, rehabilitation, and
renovation of facilities, not to exceed $75,000 per project,
$650,000,000, which shall remain available until September 30, 2000:
Provided, That the obligated balance of such sums shall remain available
through September 30, 2007 for liquidating obligations made in fiscal
years 1999 and 2000.
environmental programs and management
For environmental programs and management, including necessary
expenses, not otherwise provided for, for personnel and related costs
and travel expenses, including uniforms, or allowances therefore, as
authorized by 5 U.S.C. 5901-5902; services as authorized by 5 U.S.C.
3109, but at rates for individuals not to exceed the per diem rate
equivalent to the maximum rate payable for senior level positions under
5 U.S.C. 5376; hire of passenger motor vehicles; hire, maintenance, and
operation of aircraft; purchase of reprints; library memberships in
societies or associations which
[[Page 112 STAT. 2496]]
issue publications to members only or at a price to members lower than
to subscribers who are not members; construction, alteration, repair,
rehabilitation, and renovation of facilities, not to exceed $75,000 per
project; and not to exceed $6,000 for official reception and
representation expenses, $1,848,000,000, which shall remain available
until September 30, 2000: Provided, That the obligated balance of such
sums shall remain available through September 30, 2007 for liquidating
obligations made in fiscal years 1999 and 2000: Provided further, That
none of the funds appropriated by this Act shall be used to propose or
issue rules, regulations, decrees, or orders for the purpose of
implementation, or in preparation for implementation, of the Kyoto
Protocol which was adopted on December 11, 1997, in Kyoto, Japan at the
Third Conference of the Parties to the United Nations Framework
Convention on Climate Change, which has not been submitted to the Senate
for advice and consent to ratification pursuant to article II, section
2, clause 2, of the United States Constitution, and which has not
entered into force pursuant to article 25 of the Protocol: Provided
further, That none of the funds made available in this Act may be used
to implement or administer the interim guidance issued on February 5,
1998 by the Environmental Protection Agency relating to title VI of the
Civil Rights Act of 1964 and designated as the ``Interim Guidance for
Investigating Title VI Administrative Complaints Challenging Permits''
with respect to complaints filed under such title after the date of the
enactment of this Act and until guidance is finalized. Nothing in this
proviso may be construed to restrict the Environmental Protection Agency
from developing or issuing final guidance relating to title VI of the
Civil Rights Act of 1964.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, and for construction, alteration, repair, rehabilitation, and
renovation of facilities, not to exceed $75,000 per project,
$31,154,000, to remain available until September 30, 2000: Provided,
That the obligated balance of such sums shall remain available through
September 30, 2007 for liquidating obligations made in fiscal years 1999
and 2000.
buildings and facilities
For construction, repair, improvement, extension, alteration, and
purchase of fixed equipment or facilities of, or for use by, the
Environmental Protection Agency, $56,948,000, to remain available until
expended.
hazardous substance superfund
(including transfers of funds)
For necessary expenses to carry out the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (CERCLA), as amended,
including sections 111(c)(3), (c)(5), (c)(6), and (e)(4) (42 U.S.C.
9611), and for construction, alteration, repair, rehabilitation, and
renovation of facilities, not to exceed $75,000 per project; not to
exceed $1,500,000,000, consisting of $650,000,000
[[Page 112 STAT. 2497]]
as appropriated under this heading in Public Law 105-65, notwithstanding
the second proviso under this heading of said Act, and not to exceed
$850,000,000 (of which $100,000,000 shall not become available until
September 1, 1999), all of which is to remain available until expended,
consisting of $1,175,000,000, as authorized by section 517(a) of the
Superfund Amendments and Reauthorization Act of 1986 (SARA), as amended
by Public Law 101-508, and $325,000,000 as a payment from general
revenues to the Hazardous Substance Superfund for purposes as authorized
by section 517(b) of SARA, as amended by Public Law 101-508: Provided,
That funds appropriated under this heading may be allocated to other
Federal agencies in accordance with section 111(a) of CERCLA: Provided
further, That $12,237,000 of the funds appropriated under this heading
shall be transferred to the ``Office of Inspector General''
appropriation to remain available until September 30, 2000: Provided
further, That notwithstanding section 111(m) of CERCLA or any other
provision of law, $76,000,000 of the funds appropriated under this
heading shall be available to the Agency for Toxic Substances and
Disease Registry to carry out activities described in sections 104(i),
111(c)(4), and 111(c)(14) of CERCLA and section 118(f ) of SARA:
Provided further, That $40,000,000 of the funds appropriated under this
heading shall be transferred to the ``Science and Technology''
appropriation to remain available until September 30, 2000: Provided
further, That none of the funds appropriated under this heading shall be
available for the Agency for Toxic Substances and Disease Registry to
issue in excess of 40 toxicological profiles pursuant to section 104(i)
of CERCLA during fiscal year 1999: Provided further, That an additional
amount, $650,000,000, shall become available for obligation on October
1, 1999, only upon enactment by August 1, 1999, of specific legislation
which reauthorizes the Superfund program: Provided further, That if such
reauthorization does not occur on or before August 1, 1999, such
additional amount to be made available on October 1, 1999, is rescinded
and the Congressional Budget Office is directed to make the appropriate
scorekeeping adjustment no later than August 5, 1999.
Section 119(e)(2)(C) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, (42 U.S.C.
9619(e)(2)(C)) is amended by deleting ``, and before January 1, 1996''.
Section 119(g)(5) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, (42 U.S.C.
9619(g)(5)) is amended by deleting ``, or after December 31, 1995''.
leaking underground storage tank program
For necessary expenses to carry out leaking underground storage tank
cleanup activities authorized by section 205 of the Superfund Amendments
and Reauthorization Act of 1986, and for the uses authorized under
section 9004(f ) of the Solid Waste Disposal Act, and for construction,
alteration, repair, rehabilitation, and renovation of facilities, not to
exceed $75,000 per project, $72,500,000, to remain available until
expended: Provided, That hereafter, <<NOTE: 42 USC 6991b note.>> the
Administrator is authorized to enter into assistance agreements with
Federally recognized Indian tribes on such terms and conditions as the
Administrator deems appropriate for the
[[Page 112 STAT. 2498]]
same purposes as are set forth in section 9003(h)(7) of the Resource
Conservation and Recovery Act.
oil spill response
(including transfer of funds)
For expenses necessary to carry out the Environmental Protection
Agency's responsibilities under the Oil Pollution Act of 1990,
$15,000,000, to be derived from the Oil Spill Liability trust fund, and
to remain available until expended.
state and tribal assistance grants
For environmental programs and infrastructure assistance, including
capitalization grants for State revolving funds and performance
partnership grants, $3,386,750,000, to remain available until expended,
of which $1,350,000,000 shall be for making capitalization grants for
the Clean Water State Revolving Funds under title VI of the Federal
Water Pollution Control Act, as amended, and $775,000,000 shall be for
capitalization grants for the Drinking Water State Revolving Funds under
section 1452 of the Safe Drinking Water Act, as amended, except that,
notwithstanding section 1452(n) of the Safe Drinking Water Act, as
amended, none of the funds made available under this heading in this
Act, or in previous appropriations acts, shall be reserved by the
Administrator for health effects studies on drinking water contaminants,
$50,000,000 for architectural, engineering, planning, design,
construction and related activities in connection with the construction
of high priority water and wastewater facilities in the area of the
United States-Mexico Border, after consultation with the appropriate
border commission, $30,000,000 for grants to the State of Alaska to
address drinking water and wastewater infrastructure needs of rural and
Alaska Native Villages, $301,750,000 for making grants for the
construction of wastewater and water treatment facilities and
groundwater protection infrastructure in accordance with the terms and
conditions specified for such grants in the joint explanatory statement
of the committee of conference accompanying this Act (H.R. 4194); and
$880,000,000 for grants, including associated program support costs, to
States, federally recognized tribes, interstate agencies, tribal
consortia, and air pollution control agencies for multi-media or single
media pollution prevention, control and abatement and related
activities, including activities pursuant to the provisions set forth
under this heading in Public Law 104-134, and for making grants under
section 103 of the Clean Air Act for particulate matter monitoring and
data collection activities: Provided, <<NOTE: 42 USC 300j-12
note.>> That, consistent with section 1452(g) of the Safe Drinking Water
Act (42 U.S.C. 300j-12(g)), section 302 of the Safe Drinking Water Act
Amendments of 1996 (Public Law 104-182) and the accompanying joint
explanatory statement of the committee of conference (H. Rept. No. 104-
741 to accompany S. 1316, the Safe Drinking Water Act Amendments of
1996), and notwithstanding any other provision of law, beginning in
fiscal year 1999 and thereafter, States may combine the assets of State
Revolving Funds (SRFs) established under section 1452 of the Safe
Drinking Water Act, as amended, and title VI of the Federal Water
Pollution Control Act, as amended, as security for bond issues to
enhance the lending capacity of one or both SRFs, but not to acquire the
state match
[[Page 112 STAT. 2499]]
for either program, provided that revenues from the bonds are allocated
to the purposes of the Safe Drinking Water Act and the Federal Water
Pollution Control Act in the same portion as the funds are used as
security for the bonds: Provided further, That, notwithstanding the
matching requirement in Public Law 104-204 for funds appropriated under
this heading for grants to the State of Texas for improving wastewater
treatment for the Colonias, such funds that remain unobligated may also
be used for improving water treatment for the Colonias, and shall be
matched by State funds from State resources equal to 20 percent of such
unobligated funds: Provided further, <<NOTE: 42 USC 6908a.>> That,
hereafter the Administrator is authorized to enter into assistance
agreements with Federally recognized Indian tribes on such terms and
conditions as the Administrator deems appropriate for the development
and implementation of programs to manage hazardous waste, and
underground storage tanks: Provided further, <<NOTE: 7 USC 1360
note.>> That beginning in fiscal year 1999 and thereafter, pesticide
program implementation grants under section 23(a)(1) of the Federal
Insecticide, Fungicide and Rodenticide Act, as amended, shall be
available for pesticide program development and implementation,
including enforcement and compliance activities: Provided further, That,
notwithstanding section 603(d)(7) of the Federal Water Pollution Control
Act, as amended, the limitation on the amounts in a State water
pollution control revolving fund that may be used by a State to
administer the fund shall not apply to amounts included as principal in
loans made by such fund in fiscal year 1999 and prior years where such
amounts represent costs of administering the fund, to the extent that
such amounts are or were deemed reasonable by the Administrator,
accounted for separately from other assets in the fund, and used for
eligible purposes of the fund, including administration.
working capital fund
Under this heading in <<NOTE: 42 USC 4370e.>> Public Law 104-204,
after the phrase, ``that such fund shall be paid in advance'', insert
``or reimbursed''.
administrative provision
Not <<NOTE: Regulations. 33 USC 2720 note.>> later than March 31,
1999, the Administrator of the Environmental Protection Agency shall
issue regulations amending 40 C.F.R. 112 to comply with the requirements
of the Edible Oil Regulatory Reform Act (Public Law 104-55). Such
regulations shall differentiate between and establish separate classes
for animal fats and oils and greases, and fish and marine mammal oils
(as described in that Act), and other oils and greases, and shall apply
standards to such different classes of fats and oils based on
differences in the physical, chemical, biological, and other properties,
and in the environmental effects, of the classes. None of the funds made
available by this Act or in subsequent Acts may be used by the
Environmental Protection Agency to issue or to establish an
interpretation or guidance relating to fats, oils, and greases (as
described in Public Law 104-55) that does not comply with the
requirements of the Edible Oil Regulatory Reform Act.
[[Page 112 STAT. 2500]]
Executive Office of the President
office of science and technology policy
For necessary expenses of the Office of Science and Technology
Policy, in carrying out the purposes of the National Science and
Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C.
6601 and 6671), hire of passenger motor vehicles, and services as
authorized by 5 U.S.C. 3109, not to exceed $2,500 for official reception
and representation expenses, and rental of conference rooms in the
District of Columbia, $5,026,000.
council on environmental quality and office of environmental quality
For necessary expenses to continue functions assigned to the Council
on Environmental Quality and Office of Environmental Quality pursuant to
the National Environmental Policy Act of 1969, the Environmental Quality
Improvement Act of 1970, and Reorganization Plan No. 1 of 1977,
$2,675,000: Provided, That, notwithstanding any other provision of law,
no funds other than those appropriated under this heading, shall be used
for or by the Council on Environmental Quality and Office of
Environmental Quality: Provided further, <<NOTE: 42 USC 4342
note.>> That notwithstanding section 202 of the National Environmental
Policy Act of 1970, the Council shall consist of one member, appointed
by the President, by and with the advice and consent of the Senate,
serving as Chairman and exercising all powers, functions, and duties of
the Council.
Federal Deposit Insurance Corporation
office of inspector general
(including transfer of funds)
For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, $34,666,000, to be derived from the Bank Insurance Fund, the
Savings Association Insurance Fund, and the FSLIC Resolution Fund.
Federal Emergency Management Agency
disaster relief
For necessary expenses in carrying out the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.),
$307,745,000, and, notwithstanding 42 U.S.C. 5203, to remain available
until expended: Provided, That of the funds made available under this
heading in this and prior Appropriations Acts which are eligible for
grants to the State of California under section 404 of the Stafford
Disaster Relief and Emergency Assistance Act, $5,000,000 shall be for a
pilot project of seismic retrofit technology at California State
University, San Bernardino, $5,000,000 shall be for seismic retrofit at
the San Bernardino County Courthouse, and $30,000,000 shall be for a
project at the Loma Linda University Medical Center hospital using laser
technology demonstrating non-disruptive retrofitting.
[[Page 112 STAT. 2501]]
disaster assistance direct loan program account
For the cost of direct loans, $1,355,000, as authorized by section
319 of the Robert T. Stafford Disaster Relief and Emergency Assistance
Act: Provided, That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congressional Budget
Act of 1974, as amended: Provided further, That these funds are
available to subsidize gross obligations for the principal amount of
direct loans not to exceed $25,000,000.
In addition, for administrative expenses to carry out the direct
loan program, $440,000.
salaries and expenses
For necessary expenses, not otherwise provided for, including hire
and purchase of motor vehicles as authorized by 31 U.S.C. 1343;
uniforms, or allowances therefor, as authorized by 5 U.S.C. 5901-5902;
services as authorized by 5 U.S.C. 3109, but at rates for individuals
not to exceed the per diem rate equivalent to the maximum rate payable
for senior level positions under 5 U.S.C. 5376; expenses of attendance
of cooperating officials and individuals at meetings concerned with the
work of emergency preparedness; transportation in connection with the
continuity of Government programs to the same extent and in the same
manner as permitted the Secretary of a Military Department under 10
U.S.C. 2632; and not to exceed $2,500 for official reception and
representation expenses, $171,138,000.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended, $5,400,000.
emergency management planning and assistance
For necessary expenses, not otherwise provided for, to carry out
activities under the National Flood Insurance Act of 1968, as amended,
and the Flood Disaster Protection Act of 1973, as amended (42 U.S.C.
4001 et seq.), the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.), the Earthquake Hazards
Reduction Act of 1977, as amended (42 U.S.C. 7701 et seq.), the Federal
Fire Prevention and Control Act of 1974, as amended (15 U.S.C. 2201 et
seq.), the Defense Production Act of 1950, as amended (50 U.S.C. App.
2061 et seq.), sections 107 and 303 of the National Security Act of
1947, as amended (50 U.S.C. 404-405), and Reorganization Plan No. 3 of
1978, $240,824,000: Provided, That for purposes of pre-disaster
mitigation pursuant to 42 U.S.C. 5131 (b) and (c) and 42 U.S.C. 5196 (e)
and (i), $25,000,000 of the funds made available under this heading
shall be available until expended for project grants: Provided
further, <<NOTE: 15 USC 2222 note.>> That the United States Fire
Administration shall conduct a 12-month pilot project to promote the
installation and maintenance of smoke detectors in the localities of
highest risk for residential fires: Provided further, That the United
States Fire Administration shall transmit the results of its pilot
project to the Consumer Product Safety Commission and the Congress.
[[Page 112 STAT. 2502]]
radiological emergency preparedness fund
There <<NOTE: 42 USC 5196e.>> is hereby established in the Treasury
a Radiological Emergency Preparedness Fund, which shall be available
under the Atomic Energy Act of 1954, as amended, and Executive Order
12657, for offsite radiological emergency planning, preparedness, and
response. Beginning in fiscal year 1999 and thereafter, the Director of
the Federal Emergency Management Agency (FEMA) shall promulgate through
rulemaking fees to be assessed and collected, applicable to persons
subject to FEMA's radiological emergency preparedness regulations. The
aggregate charges assessed pursuant to this section during fiscal year
1999 shall not be less than 100 percent of the amounts anticipated by
FEMA necessary for its radiological emergency preparedness program for
such fiscal year. The methodology for assessment and collection of fees
shall be fair and equitable; and shall reflect costs of providing such
services, including administrative costs of collecting such fees. Fees
received pursuant to this section shall be deposited in the Fund as
offsetting collections and will become available for authorized purposes
on October 1, 1999, and remain available until expended.
For necessary expenses of the Fund for fiscal year 1999,
$12,849,000, to remain available until expended.
emergency food and shelter program
To carry out an emergency food and shelter program pursuant to title
III of Public Law 100-77, as amended, $100,000,000: Provided, That total
administrative costs shall not exceed three and one-half percent of the
total appropriation.
national flood insurance fund
(including transfer of funds)
For activities under the National Flood Insurance Act of 1968, the
Flood Disaster Protection Act of 1973, as amended, not to exceed
$22,685,000 for salaries and expenses associated with flood mitigation
and flood insurance operations, and not to exceed $78,464,000 for flood
mitigation, including up to $20,000,000 for expenses under section 1366
of the National Flood Insurance Act, which amount shall be available for
transfer to the National Flood Mitigation Fund until September 30, 2000.
In fiscal year 1999, no funds in excess of: (1) $47,000,000 for
operating expenses; (2) $343,989,000 for agents' commissions and taxes;
and (3) $60,000,000 for interest on Treasury borrowings shall be
available from the National Flood Insurance Fund without prior notice to
the Committees on Appropriations. For fiscal year 1999, flood insurance
rates shall not exceed the level authorized by the National Flood
Insurance Reform Act of 1994.
Section 1309(a)(2) of the National Flood Insurance Act (42 U.S.C.
4016(a)(2)), as amended by Public Law 104-208, is further amended by
striking ``1998'' and inserting ``1999''.
Section 1319 of the National Flood Insurance Act of 1968, as amended
(42 U.S.C. 4026), is amended by striking ``September 30, 1998'' and
inserting ``September 30, 1999''.
Section 1336 of the National Flood Insurance Act of 1968, as amended
(42 U.S.C. 4056), is amended by striking ``September 30, 1998'' and
inserting ``September 30, 1999''.
[[Page 112 STAT. 2503]]
The first sentence of section 1376(c) of the National Flood
Insurance Act of 1968, as amended (42 U.S.C. 4127(c)), is amended by
striking ``September 30, 1998'' and inserting ``September 30, 1999''.
General Services Administration
consumer information center fund
For necessary expenses of the Consumer Information Center, including
services authorized by 5 U.S.C. 3109, $2,619,000, to be deposited into
the Consumer Information Center Fund: Provided, That the appropriations,
revenues and collections deposited into the fund shall be available for
necessary expenses of Consumer Information Center activities in the
aggregate amount of $7,500,000. Appropriations, revenues, and
collections accruing to this fund during fiscal year 1999 in excess of
$7,500,000 shall remain in the fund and shall not be available for
expenditure except as authorized in appropriations Acts.
National Aeronautics and Space Administration
human space flight
For necessary expenses, not otherwise provided for, in the conduct
and support of human space flight research and development activities,
including research, development, operations, and services; maintenance;
construction of facilities including repair, rehabilitation, and
modification of real and personal property, and acquisition or
condemnation of real property, as authorized by law; space flight,
spacecraft control and communications activities including operations,
production, and services; and purchase, lease, charter, maintenance and
operation of mission and administrative aircraft, $5,480,000,000, to
remain available until September 30, 2000.
science, aeronautics and technology
For necessary expenses, not otherwise provided for, in the conduct
and support of science, aeronautics and technology research and
development activities, including research, development, operations, and
services; maintenance; construction of facilities including repair,
rehabilitation, and modification of real and personal property, and
acquisition or condemnation of real property, as authorized by law;
space flight, spacecraft control and communications activities including
operations, production, and services; and purchase, lease, charter,
maintenance and operation of mission and administrative aircraft,
$5,653,900,000, to remain available until September 30, 2000: Provided,
That none of the funds provided under this heading may be utilized to
support the development or operations of the International Space
Station: Provided further, That this limitation shall not preclude the
use of funds provided under this heading for the conduct of science,
aeronautics, space transportation and technology activities utilizing or
enabled by the International Space Station.
[[Page 112 STAT. 2504]]
mission support
For necessary expenses, not otherwise provided for, in carrying out
mission support for human space flight programs and science,
aeronautical, and technology programs, including research operations and
support; space communications activities including operations,
production and services; maintenance; construction of facilities
including repair, rehabilitation, and modification of facilities, minor
construction of new facilities and additions to existing facilities,
facility planning and design, environmental compliance and restoration,
and acquisition or condemnation of real property, as authorized by law;
program management; personnel and related costs, including uniforms or
allowances therefor, as authorized by 5 U.S.C. 5901-5902; travel
expenses; purchase, lease, charter, maintenance, and operation of
mission and administrative aircraft; not to exceed $35,000 for official
reception and representation expenses; and purchase (not to exceed 33
for replacement only) and hire of passenger motor vehicles,
$2,511,100,000, to remain available until September 30, 2000.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended, $20,000,000.
administrative provisions
Notwithstanding the limitation on the availability of funds
appropriated for ``Human space flight'', ``Science, aeronautics and
technology'', or ``Mission support'' by this appropriations Act, when
any activity has been initiated by the incurrence of obligations for
construction of facilities as authorized by law, such amount available
for such activity shall remain available until expended. This provision
does not apply to the amounts appropriated in ``Mission support''
pursuant to the authorization for repair, rehabilitation and
modification of facilities, minor construction of new facilities and
additions to existing facilities, and facility planning and design.
Notwithstanding the limitation on the availability of funds
appropriated for ``Human space flight'', ``Science, aeronautics and
technology'', or ``Mission support'' by this appropriations Act, the
amounts appropriated for construction of facilities shall remain
available until September 30, 2001.
Notwithstanding the limitation on the availability of funds
appropriated for ``Mission support'' and ``Office of Inspector
General'', amounts made available by this Act for personnel and related
costs and travel expenses of the National Aeronautics and Space
Administration shall remain available until September 30, 1999 and may
be used to enter into contracts for training, investigations, costs
associated with personnel relocation, and for other services, to be
provided during the next fiscal year.
NASA shall develop a revised appropriation structure for submission
in the fiscal year 2000 budget request consisting of five appropriations
accounts (International Space Station; Launch Vehicles and Payload
Operations; Science, Aeronautics and Technology; Mission Support; and
Office of Inspector General).
[[Page 112 STAT. 2505]]
National Credit Union Administration
central liquidity facility
During fiscal year 1999, gross obligations of the Central Liquidity
Facility for the principal amount of new direct loans to member credit
unions, as authorized by the National Credit Union Central Liquidity
Facility Act (12 U.S.C. 1795), shall not exceed $600,000,000: Provided,
That administrative expenses of the Central Liquidity Facility in fiscal
year 1999 shall not exceed $176,000: Provided further, That $2,000,000,
together with amounts of principal and interest on loans repaid, to be
available until expended, is available for loans to community
development credit unions.
National Science Foundation
research and related activities
For necessary expenses in carrying out the National Science
Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), and the Act to
establish a National Medal of Science (42 U.S.C. 1880-1881); services as
authorized by 5 U.S.C. 3109; maintenance and operation of aircraft and
purchase of flight services for research support; acquisition of
aircraft, $2,770,000,000, of which not to exceed $257,460,000, shall
remain available until expended for Polar research and operations
support, and for reimbursement to other Federal agencies for operational
and science support and logistical and other related activities for the
United States Antarctic program; the balance to remain available until
September 30, 2000: Provided, That receipts for scientific support
services and materials furnished by the National Research Centers and
other National Science Foundation supported research facilities may be
credited to this appropriation: Provided further, That to the extent
that the amount appropriated is less than the total amount authorized to
be appropriated for included program activities, all amounts, including
floors and ceilings, specified in the authorizing Act for those program
activities or their subactivities shall be reduced proportionally:
Provided further, That none of the funds appropriated or otherwise made
available to the National Science Foundation in this or any prior Act
may be obligated or expended by the National Science Foundation to enter
into or extend a grant, contract, or cooperative agreement for the
support of administering the domain name and numbering system of the
Internet after September 30, 1998.
major research equipment
For necessary expenses of major construction projects pursuant to
the National Science Foundation Act of 1950, as amended, $90,000,000, to
remain available until expended.
education and human resources
For necessary expenses in carrying out science and engineering
education and human resources programs and activities pursuant to the
National Science Foundation Act of 1950, as amended (42 U.S.C. 1861-
1875), including services as authorized by 5 U.S.C. 3109 and rental of
conference rooms in the District of Columbia,
[[Page 112 STAT. 2506]]
$662,000,000, to remain available until September 30, 2000: Provided,
That to the extent that the amount of this appropriation is less than
the total amount authorized to be appropriated for included program
activities, all amounts, including floors and ceilings, specified in the
authorizing Act for those program activities or their subactivities
shall be reduced proportionally: Provided further, That the Alliances
for Minority Participation Program is renamed the Louis Stokes Alliances
for Minority Participation Program.
salaries and expenses
For salaries and expenses necessary in carrying out the National
Science Foundation Act of 1950, as amended (42 U.S.C. 1861-1875);
services authorized by 5 U.S.C. 3109; hire of passenger motor vehicles;
not to exceed $9,000 for official reception and representation expenses;
uniforms or allowances therefor, as authorized by 5 U.S.C. 5901-5902;
rental of conference rooms in the District of Columbia; reimbursement of
the General Services Administration for security guard services;
$144,000,000: Provided, That contracts may be entered into under
``Salaries and expenses'' in fiscal year 1999 for maintenance and
operation of facilities, and for other services, to be provided during
the next fiscal year.
office of inspector general
For necessary expenses of the Office of Inspector General as
authorized by the Inspector General Act of 1978, as amended, $5,200,000,
to remain available until September 30, 2000.
Neighborhood Reinvestment Corporation
payment to the neighborhood reinvestment corporation
For payment to the Neighborhood Reinvestment Corporation for use in
neighborhood reinvestment activities, as authorized by the Neighborhood
Reinvestment Corporation Act (42 U.S.C. 8101-8107), $90,000,000:
Provided, That $25,000,000 shall be for a pilot homeownership
initiative, including an evaluation by an independent third party to
determine its effectiveness.
Selective Service System
salaries and expenses
For necessary expenses of the Selective Service System, including
expenses of attendance at meetings and of training for uniformed
personnel assigned to the Selective Service System, as authorized by 5
U.S.C. 4101-4118 for civilian employees; and not to exceed $1,000 for
official reception and representation expenses, $24,176,000: Provided,
That during the current fiscal year, the President may exempt this
appropriation from the provisions of 31 U.S.C. 1341, whenever he deems
such action to be necessary in the interest of national defense:
Provided further, That none of the funds appropriated by this Act may be
expended for or in connection with the induction of any person into the
Armed Forces of the United States.
[[Page 112 STAT. 2507]]
TITLE <<NOTE: Short title.>> IV--GENERAL PROVISIONS
Sec. 401. Where appropriations in titles I, II, and III of this Act
are expendable for travel expenses and no specific limitation has been
placed thereon, the expenditures for such travel expenses may not exceed
the amounts set forth therefore in the budget estimates submitted for
the appropriations: Provided, That this provision does not apply to
accounts that do not contain an object classification for travel:
Provided further, That this section shall not apply to travel performed
by uncompensated officials of local boards and appeal boards of the
Selective Service System; to travel performed directly in connection
with care and treatment of medical beneficiaries of the Department of
Veterans Affairs; to travel performed in connection with major disasters
or emergencies declared or determined by the President under the
provisions of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act; to travel performed by the Offices of Inspector General
in connection with audits and investigations; or to payments to
interagency motor pools where separately set forth in the budget
schedules: Provided further, That if appropriations in titles I, II, and
III exceed the amounts set forth in budget estimates initially submitted
for such appropriations, the expenditures for travel may correspondingly
exceed the amounts therefore set forth in the estimates in the same
proportion.
Sec. 402. Appropriations and funds available for the administrative
expenses of the Department of Housing and Urban Development and the
Selective Service System shall be available in the current fiscal year
for purchase of uniforms, or allowances therefor, as authorized by 5
U.S.C. 5901-5902; hire of passenger motor vehicles; and services as
authorized by 5 U.S.C. 3109.
Sec. 403. Funds of the Department of Housing and Urban Development
subject to the Government Corporation Control Act or section 402 of the
Housing Act of 1950 shall be available, without regard to the
limitations on administrative expenses, for legal services on a contract
or fee basis, and for utilizing and making payment for services and
facilities of Federal National Mortgage Association, Government National
Mortgage Association, Federal Home Loan Mortgage Corporation, Federal
Financing Bank, Federal Reserve banks or any member thereof, Federal
Home Loan banks, and any insured bank within the meaning of the Federal
Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811-1831).
Sec. 404. No part of any appropriation contained in this Act shall
remain available for obligation beyond the current fiscal year unless
expressly so provided herein.
Sec. 405. No funds appropriated by this Act may be expended--
(1) pursuant to a certification of an officer or employee of
the United States unless--
(A) such certification is accompanied by, or is part
of, a voucher or abstract which describes the payee or
payees and the items or services for which such
expenditure is being made; or
(B) the expenditure of funds pursuant to such
certification, and without such a voucher or abstract,
is specifically authorized by law; and
(2) unless such expenditure is subject to audit by the
General Accounting Office or is specifically exempt by law from
such audit.
[[Page 112 STAT. 2508]]
Sec. 406. None of the funds provided in this Act to any department
or agency may be expended for the transportation of any officer or
employee of such department or agency between their domicile and their
place of employment, with the exception of any officer or employee
authorized such transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.
Sec. 407. None of the funds provided in this Act may be used for
payment, through grants or contracts, to recipients that do not share in
the cost of conducting research resulting from proposals not
specifically solicited by the Government: Provided, That the extent of
cost sharing by the recipient shall reflect the mutuality of interest of
the grantee or contractor and the Government in the research.
Sec. 408. None of the funds in this Act may be used, directly or
through grants, to pay or to provide reimbursement for payment of the
salary of a consultant (whether retained by the Federal Government or a
grantee) at more than the daily equivalent of the rate paid for level IV
of the Executive Schedule, unless specifically authorized by law.
Sec. 409. None of the funds provided in this Act shall be used to
pay the expenses of, or otherwise compensate, non-Federal parties
intervening in regulatory or adjudicatory proceedings. Nothing herein
affects the authority of the Consumer Product Safety Commission pursuant
to section 7 of the Consumer Product Safety Act (15 U.S.C. 2056 et
seq.).
Sec. 410. <<NOTE: Contracts. Public information. Records.>> Except
as otherwise provided under existing law, or under an existing Executive
Order issued pursuant to an existing law, the obligation or expenditure
of any appropriation under this Act for contracts for any consulting
service shall be limited to contracts which are: (1) a matter of public
record and available for public inspection; and (2) thereafter included
in a publicly available list of all contracts entered into within
twenty-four months prior to the date on which the list is made available
to the public and of all contracts on which performance has not been
completed by such date. The list required by the preceding sentence
shall be updated quarterly and shall include a narrative description of
the work to be performed under each such contract.
Sec. 411. Except as otherwise provided by law, no part of any
appropriation contained in this Act shall be obligated or expended by
any executive agency, as referred to in the Office of Federal
Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for
services unless such executive agency: (1) has awarded and entered into
such contract in full compliance with such Act and the regulations
promulgated thereunder; and (2) requires any report prepared pursuant to
such contract, including plans, evaluations, studies, analyses and
manuals, and any report prepared by the agency which is substantially
derived from or substantially includes any report prepared pursuant to
such contract, to contain information concerning: (A) the contract
pursuant to which the report was prepared; and (B) the contractor who
prepared the report pursuant to such contract.
Sec. 412. Except as otherwise provided in section 406, none of the
funds provided in this Act to any department or agency shall be
obligated or expended to provide a personal cook, chauffeur, or other
personal servants to any officer or employee of such department or
agency.
[[Page 112 STAT. 2509]]
Sec. 413. None of the funds provided in this Act to any department
or agency shall be obligated or expended to procure passenger
automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles per
gallon average of less than 22 miles per gallon.
Sec. 414. <<NOTE: Reports.>> None of the funds appropriated in title
I of this Act shall be used to enter into any new lease of real property
if the estimated annual rental is more than $300,000 unless the
Secretary submits, in writing, a report to the Committees on
Appropriations of the Congress and a period of 30 days has expired
following the date on which the report is received by the Committees on
Appropriations.
Sec. 415. (a) It is the sense of the Congress that, to the greatest
extent practicable, all equipment and products purchased with funds made
available in this Act should be American-made.
(b) <<NOTE: Notice.>> In providing financial assistance to, or
entering into any contract with, any entity using funds made available
in this Act, the head of each Federal agency, to the greatest extent
practicable, shall provide to such entity a notice describing the
statement made in subsection (a) by the Congress.
Sec. 416. None of the funds appropriated in this Act may be used to
implement any cap on reimbursements to grantees for indirect costs,
except as published in Office of Management and Budget Circular A-21.
Sec. 417. Such sums as may be necessary for fiscal year 1999 pay
raises for programs funded by this Act shall be absorbed within the
levels appropriated in this Act.
Sec. 418. None of the funds made available in this Act may be used
for any program, project, or activity, when it is made known to the
Federal entity or official to which the funds are made available that
the program, project, or activity is not in compliance with any Federal
law relating to risk assessment, the protection of private property
rights, or unfunded mandates.
Sec. 419. Corporations and agencies of the Department of Housing and
Urban Development which are subject to the Government Corporation
Control Act, as amended, are hereby authorized to make such
expenditures, within the limits of funds and borrowing authority
available to each such corporation or agency and in accord with law, and
to make such contracts and commitments without regard to fiscal year
limitations as provided by section 104 of the Act as may be necessary in
carrying out the programs set forth in the budget for 1999 for such
corporation or agency except as hereinafter provided: Provided, That
collections of these corporations and agencies may be used for new loan
or mortgage purchase commitments only to the extent expressly provided
for in this Act (unless such loans are in support of other forms of
assistance provided for in this or prior appropriations Acts), except
that this proviso shall not apply to the mortgage insurance or guaranty
operations of these corporations, or where loans or mortgage purchases
are necessary to protect the financial interest of the United States
Government.
Sec. 420. Notwithstanding section 320(g) of the Federal Water
Pollution Control Act (33 U.S.C. 1330(g)), funds made available pursuant
to authorization under such section for fiscal year 1999 and prior
fiscal years may be used for implementing comprehensive conservation and
management plans.
[[Page 112 STAT. 2510]]
Sec. 421. Notwithstanding any other provision of law, the term
``qualified student loan'' with respect to national service education
awards shall mean any loan made directly to a student by the Alaska
Commission on Postsecondary Education, in addition to other meanings
under section 148(b)(7) of the National and Community Service Act.
Sec. 422. Notwithstanding any other law, funds made available by
this or any other Act or previous Acts for the United States/Mexico
Foundation for Science may be used for the endowment of such Foundation.
Sec. 423. <<NOTE: Deadline. Reports. 15 USC 1201 note.>> (a) Within
90 days of the enactment of this Act, the Consumer Product Safety
Commission shall make all necessary arrangements for the Committee on
Toxicology of the National Academy of Sciences (NAS) to conduct an
independent 12-month study of the potential toxicologic risks of all
flame-retardant chemicals identified by the NAS and the Commission as
likely candidates for use in residential upholstered furniture for the
purpose of meeting regulations proposed by the Commission for flame
resistance of residential upholstered furniture.
(b) Upon completion of its report, the Academy shall send the report
to the Commission, which shall provide it to the Congress.
(c) The Commission, before promulgating any notice of proposed
rulemaking or final rulemaking setting flammability standards for
residential upholstered furniture, shall consider fully the findings and
conclusions of the Academy.
Sec. 424. None of the funds made available in this Act may be used
for researching methods to reduce methane emissions from cows, sheep, or
any other ruminant livestock.
Sec. 425. None of the funds made available in this Act may be used
to carry out Executive Order No. 13083.
Sec. 426. Unless otherwise provided for in this Act, no part of any
appropriation for the Department of Housing and Urban Development shall
be available for any activity in excess of amounts set forth in the
budget estimates submitted for the appropriations.
Sec. 427. National Fallen Firefighters Foundation. (a) Establishment
and Purposes.--Section 202 of the National Fallen Firefighters
Foundation Act <<NOTE: 36 USC 151302 note.>> (36 U.S.C. 5201) is
amended--
(1) by striking paragraph (1) and inserting the following:
``(1) primarily--
``(A) to encourage, accept, and administer private
gifts of property for the benefit of the National Fallen
Firefighters' Memorial and the annual memorial service
associated with the memorial; and
``(B) to, in coordination with the Federal
Government and fire services (as that term is defined in
section 4 of the Federal Fire Prevention and Control Act
of 1974 (15 U.S.C. 2203)), plan, direct, and manage the
memorial service referred to in subparagraph (A) and
related activities;'';
(2) in paragraph (2), by inserting ``and Federal'' after
``non-Federal'';
(3) in paragraph (3)--
(A) by striking ``State and local'' and inserting
``Federal, State, and local''; and
(B) by striking ``and'' at the end;
(4) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
[[Page 112 STAT. 2511]]
(5) by adding at the end the following:
``(5) to provide for a national program to assist families
of fallen firefighters and fire departments in dealing with
line-of-duty deaths of those firefighters; and
``(6) to promote national, State, and local initiatives to
increase public awareness of fire and life safety.''.
(b) Board of Directors of Foundation.--Section 203(g)(1) of the
National Fallen Firefighters Foundation Act <<NOTE: 36 USC 151304
note.>> (36 U.S.C. 5202(g)(1)) is amended by striking subparagraph (A)
and inserting the following:
``(A) appointing officers or employees;''.
(c) Administrative Services and Support.--Section 205 of the
National Fallen Firefighters Foundation Act <<NOTE: 36 USC 151307
note.>> (36 U.S.C. 5204) is amended to read as follows:
``SEC. 205. ADMINISTRATIVE SERVICES AND SUPPORT.
``(a) In General.--During the 10-year period beginning on the date
of the enactment of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1999,
the Administrator may--
``(1) provide personnel, facilities, and other required
services for the operation of the Foundation; and
``(2) accept reimbursement for the assistance provided under
paragraph (1).
``(b) Reimbursement.--Any amounts received under subsection (a)(2)
as reimbursement for assistance shall be deposited in the Treasury to
the credit of the appropriations then current and chargeable for the
cost of providing that assistance.
``(c) Prohibition.--Notwithstanding any other provision of law, no
Federal personnel or stationery may be used to solicit funding for the
Foundation.''.
Sec. 428. Ineligibility of Individuals Convicted of Manufacturing or
Producing Methamphetamine for Certain Housing Assistance. Section 16 of
the United States Housing Act of 1937 (42 U.S.C. 1437n) is amended by
adding at the end the following:
``(f ) Ineligibility of Individuals Convicted of Manufacturing or
Producing Methamphetamine On the Premises.--Notwithstanding any other
provision of law, a public housing agency shall establish standards for
occupancy in public housing dwelling units and assistance under section
8 that--
``(1) permanently prohibit occupancy in any public housing
dwelling unit by, and assistance under section 8 for, any person
who has been convicted of manufacturing or otherwise producing
methamphetamine on the premises in violation of any Federal or
State law; and
``(2) immediately and permanently terminate the tenancy in
any public housing unit of, and the assistance under section 8
for, any person who is convicted of manufacturing or otherwise
producing methamphetamine on the premises in violation of any
Federal or State law.''.
Sec. 429. <<NOTE: Deadlines. Safety.>> (a) Not later than 90 days
after the date of the enactment of this Act, the Consumer Product Safety
Commission shall propose for comment a revocation of the amendments to
the standards for the flammability of children's sleepwear sizes 0
through 6X (contained in regulations published at 16 CFR part 1615) and
7 through 14 (contained in regulations published at
[[Page 112 STAT. 2512]]
16 CFR part 1616) issued by the Commission on September 9, 1996 (61 FR
47634), and any subsequent amendments thereto.
(b) The General Accounting Office shall undertake a review of
children's burn incident data relating to burns from the ignition of
children's sleepwear from small open flame sources for the period July
1, 1997 through January 1, 1999. Such review shall be completed by April
1, 1999 and shall be submitted to the Congress and to the Consumer
Product Safety Commission.
(c) <<NOTE: Regulations.>> Not later than July 1, 1999, the Consumer
Product Safety Commission shall promulgate a final rule revoking,
maintaining or modifying the amendments issued by the Commission on
September 9, 1996 (61 FR 47634) and any subsequent amendments thereto
amending the Flammable Fabrics Act standards for the flammability of
children's sleepwear, considering and substantively addressing the
findings of the General Accounting Office and other information
available to the Commission.
(d) None of the following shall apply with respect to the
promulgation of the amendment prescribed by subsection (a):
(1) The Consumer Product Safety Act (15 U.S.C. 2051 et
seq.).
(2) The Flammable Fabrics Act (15 U.S.C. 1191 et seq.).
(3) Chapter 6 of title 5, United States Code.
(4) The National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
(5) The Small Business Regulatory Enforcement Fairness Act
of 1996 (Public Law 104-121).
(6) Any other statute or Executive order.
Sec. <<NOTE: 42 USC 6614 note.>> 430. Comprehensive Accountability
Study for Federally-Funded Research. (a) Study.--The Director of the
Office of Science and Technology Policy, in consultation with the
Director of the Office of Management and Budget, may enter into an
agreement with the National Academy of Sciences for the Academy to
conduct a comprehensive study to develop methods for evaluating
federally-funded research and development programs. This study shall--
(1) recommend processes to determine an acceptable level of
success for federally-funded research and development programs
by--
(A) describing the research process in the various
scientific and engineering disciplines;
(B) describing in the different sciences what
measures and what criteria each community uses to
evaluate the success or failure of a program, and on
what time scales these measures are considered
reliable--both for exploratory long-range work and for
short-range goals; and
(C) recommending how these measures may be adapted
for use by the Federal Government to evaluate federally-
funded research and development programs;
(2) assess the extent to which agencies incorporate
independent merit-based evaluation into the formulation of the
strategic plans of funding agencies and if the quantity or
quality of this type of input is unsatisfactory;
(3) recommend mechanisms for identifying federally-funded
research and development programs which are unsuccessful or
unproductive;
[[Page 112 STAT. 2513]]
(4) evaluate the extent to which independent, merit-based
evaluation of federally-funded research and development programs
and projects achieves the goal of eliminating unsuccessful or
unproductive programs and projects; and
(5) investigate and report on the validity of using
quantitative performance goals for aspects of programs which
relate to administrative management of the program and for which
such goals would be appropriate, including aspects related to--
(A) administrative burden on contractors and
recipients of financial assistance awards;
(B) administrative burdens on external participants
in independent, merit-based evaluations;
(C) cost and schedule control for construction
projects funded by the program;
(D) the ratio of overhead costs of the program
relative to the amounts expended through the program for
equipment and direct funding of research; and
(E) the timeliness of program responses to requests
for funding, participation, or equipment use.
(b) Independent Merit-Based Evaluation Defined.--The term
``independent merit-based evaluation'' means review of the scientific or
technical quality of research or development, conducted by experts who
are chosen for their knowledge of scientific and technical fields
relevant to the evaluation and who--
(1) in the case of the review of a program activity, do not
derive long-term support from the program activity; or
(2) in the case of the review of a project proposal, are not
seeking funds in competition with the proposal.
Sec. <<NOTE: 42 USC 2458b note.>> 431. Insurance; Indemnification;
Liability. (a) In General.--The Administrator may provide liability
insurance for, or indemnification to, the developer of an experimental
aerospace vehicle developed or used in execution of an agreement between
the Administration and the developer.
(b) Terms and Conditions.--
(1) In general.--Except as otherwise provided in this
section, the insurance and indemnification provided by the
Administration under subsection (a) to a developer shall be
provided on the same terms and conditions as insurance and
indemnification is provided by the Administration under section
308 of the National Aeronautics and Space Act of 1958 (42 U.S.C.
2458b) to the user of a space vehicle.
(2) Insurance.--
(A) In general.--A developer shall obtain liability
insurance or demonstrate financial responsibility in
amounts to compensate for the maximum probable loss from
claims by--
(i) a third party for death, bodily injury, or
property damage, or loss resulting from an
activity carried out in connection with the
development or use of an experimental aerospace
vehicle; and
(ii) the United States Government for damage
or loss to Government property resulting from such
an activity.
(B) Maximum required.--The Administrator shall
determine the amount of insurance required, but, except
as provided in subparagraph (C), that amount shall not
be greater than the amount required under section
[[Page 112 STAT. 2514]]
70112(a)(3) of title 49, United States Code, for a
launch. The Administrator <<NOTE: Federal Register,
publication. Notice.>> shall publish notice of the
Administrator's determination and the applicable amount
or amounts in the Federal Register within 10 days after
making the determination.
(C) Increase in dollar amounts.--The Administrator
may increase the dollar amounts set forth in section
70112(a)(3)(A) of title 49, United States Code, for the
purpose of applying that section under this section to a
developer after consultation with the Comptroller
General and such experts and consultants as may be
appropriate, and after publishing notice of the increase
in the Federal Register not less than 180 days before
the increase goes into effect. <<NOTE: Public
information.>> The Administrator shall make available
for public inspection, not later than the date of
publication of such notice, a complete record of any
correspondence received by the Administration, and a
transcript of any meetings in which the Administration
participated, regarding the proposed increase.
(D) Safety review required before administrator
provides insurance.--The Administrator may not provide
liability insurance or indemnification under subsection
(a) unless the developer establishes to the satisfaction
of the Administrator that appropriate safety procedures
and practices are being followed in the development of
the experimental aerospace vehicle.
(3) No indemnification without cross-waiver.--
Notwithstanding subsection (a), the Administrator may not
indemnify a developer of an experimental aerospace vehicle under
this section unless there is an agreement between the
Administration and the developer described in subsection (c).
(4) Application of certain procedures.--If the Administrator
requests additional appropriations to make payments under this
section, like the payments that may be made under section 308(b)
of the National Aeronautics and Space Act of 1958 (42 U.S.C.
2458b(b)), then the request for those appropriations shall be
made in accordance with the procedures established by
subsections (d) and (e) of section 70113 of title 49, United
States Code.
(c) Cross-Waivers.--
(1) Administrator authorized to waive.--The Administrator,
on behalf of the United States, and its departments, agencies,
and related entities, may reciprocally waive claims with a
developer and with the related entities of that developer under
which each party to the waiver agrees to be responsible, and
agrees to ensure that its own related entities are responsible,
for damage or loss to its property for which it is responsible,
or for losses resulting from any injury or death sustained by
its own employees or agents, as a result of activities connected
to the agreement or use of the experimental aerospace vehicle.
(2) Limitations.--
(A) Claims.--A reciprocal waiver under paragraph (1)
may not preclude a claim by any natural person
(including, but not limited to, a natural person who is
an employee of the United States, the developer, or the
developer's subcontractors) or that natural person's
estate, survivors, or
[[Page 112 STAT. 2515]]
subrogees for injury or death, except with respect to a
subrogee that is a party to the waiver or has otherwise
agreed to be bound by the terms of the waiver.
(B) Liability for negligence.--A reciprocal waiver
under paragraph (1) may not absolve any party of
liability to any natural person (including, but not
limited to, a natural person who is an employee of the
United States, the developer, or the developer's
subcontractors) or such a natural person's estate,
survivors, or subrogees for negligence, except with
respect to a subrogee that is a party to the waiver or
has otherwise agreed to be bound by the terms of the
waiver.
(C) Indemnification for damages.--A reciprocal
waiver under paragraph (1) may not be used as the basis
of a claim by the Administration or the developer for
indemnification against the other for damages paid to a
natural person, or that natural person's estate,
survivors, or subrogees, for injury or death sustained
by that natural person as a result of activities
connected to the agreement or use of the experimental
aerospace vehicle.
(3) Effect <<NOTE: Applicability.>> on previous waivers.--
Subsection (c) applies to any waiver of claims entered into by
the Administration without regard to whether it was entered into
before, on, or after the date of the enactment of this Act.
(d) Definitions.--In this section:
(1) Administration.--The term ``Administration'' means the
National Aeronautics and Space Administration.
(2) Administrator.--The term ``Administrator'' means the
Administrator of the National Aeronautics and Space
Administration.
(3) Common terms.--Any term used in this section that is
defined in the National Aeronautics and Space Act of 1958 (42
U.S.C. 2451 et seq.) has the same meaning in this section as
when it is used in that Act.
(4) Developer.--The term ``developer'' means a United States
person (other than a natural person) who--
(A) is a party to an agreement that was in effect
before the date of the enactment of this Act with the
Administration for the purpose of developing new
technology for an experimental aerospace vehicle;
(B) owns or provides property to be flown or
situated on that vehicle; or
(C) employs a natural person to be flown on that
vehicle.
(5) Experimental aerospace vehicle.--The term ``experimental
aerospace vehicle'' means an object intended to be flown in, or
launched into, suborbital flight for the purpose of
demonstrating technologies necessary for a reusable launch
vehicle, developed under an agreement between the Administration
and a developer that was in effect before the date of the
enactment of this Act.
(6) Related entity.--The term ``related entity'' includes a
contractor or subcontractor at any tier, a supplier, a grantee,
and an investigator or detailee.
(e) Relationship to Other Laws.--
(1) Section 308 of national aeronautics and space act of
1958.--This section does not apply to any object, transaction,
[[Page 112 STAT. 2516]]
or operation to which section 308 of the National Aeronautics
and Space Act of 1958 (42 U.S.C. 2458b) applies.
(2) Chapter 701 of title 49, united states code.--The
Administrator may not provide indemnification to a developer
under this section for launches subject to license under section
70117(g)(1) of title 49, United States Code.
(f ) Termination.--
(1) In general.--The provisions of this section shall
terminate on December 31, 2002, except that the Administrator
may extend the termination date to a date not later than
September 30, 2005, if the Administrator determines that such an
extension is necessary to cover the operation of an experimental
aerospace vehicle.
(2) Effect of termination on agreements.--The termination of
this section does not terminate or otherwise affect a cross-
waiver agreement, insurance agreement, indemnification
agreement, or any other agreement entered into under this
section except as may be provided in that agreement.
Sec. 432. Vietnam Veterans Allotment. The Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.) is amended by adding at the end:
``open season for certain alaska native veterans for allotments
``Sec. 41. <<NOTE: 43 USC 1629g.>> (a) In General.--(1) During the
eighteen month period following promulgation of implementing rules
pursuant to subsection (e), a person described in subsection (b) shall
be eligible for an allotment of not more than two parcels of federal
land totaling 160 acres or less under the Act of May 17, 1906 (chapter
2469; 34 Stat. 197), as such Act was in effect before December 18, 1971.
``(2) Allotments may be selected only from lands that were vacant,
unappropriated, and unreserved on the date when the person eligible for
the allotment first used and occupied those lands.
``(3) The Secretary may not convey allotments containing any of the
following--
``(A) lands upon which a native or non-native campsite is
located, except for a campsite used primarily by the person
selecting the allotment;
``(B) lands selected by, but not conveyed to, the State of
Alaska pursuant to the Alaska Statehood Act or any other
provision of law;
``(C) lands selected by, but not conveyed to, a Village or
Regional Corporation;
``(D) lands designated as wilderness by statute;
``(E) acquired lands;
``(F) lands containing a building, permanent structure, or
other development owned or controlled by the United States,
another unit of government, or a person other than the person
selecting the allotment;
``(G) lands withdrawn or reserved for national defense
purposes other than National Petroleum Reserve-Alaska;
``(H) National Forest Lands; and
``(I) lands selected or claimed, but not conveyed, under a
public land law, including but not limited to the following:
``(1) Lands within a recorded mining claim.
``(2) Home sites.
[[Page 112 STAT. 2517]]
``(3) Trade and Manufacturing sites.
``(4) Reindeer sites and Reindeer headquarters
sites.
``(5) Cemetery sites.
``(4) A person who qualifies for an allotment on lands prohibited
from conveyance by a provision of subsection (a)(3) may select an
alternative allotment from the following lands located within the
geographic boundaries of the same Regional Corporation as the excluded
allotment--
``(A) lands withdrawn pursuant to section 11(a)(1) of this
Act which were not selected, or were relinquished after
selection;
``(B) lands contiguous to the outer boundary of lands
withdrawn pursuant to section 11(a)(1)(C) of this Act, except
lands excluded from selection by a provision of subsection
(a)(3) and lands within a National Park; and
``(C) vacant, unappropriated and unreserved lands.
``(5) After consultation with a person entitled to an allotment
within a Conservation System Unit, the Secretary may convey alternative
lands of equal acreage, including lands within a Conservation System
Unit, to that person if the Secretary determines that the allotment
would be incompatible with a purpose for which the Conservation System
Unit was established.
``(6) All conveyances under this section shall--
``(A) be subject to valid existing rights, including any
right of the United States to income derived, directly or
indirectly, from a lease, license, permit, right-of-way or
easement; and
``(B) reserve to the United States deposits of oil, gas and
coal, together with the right to explore, mine, and remove these
minerals, on lands which the Secretary determines to be
prospectively valuable for development.
``(b) Eligible Person.--(1) A person is eligible to select an
allotment under this section if that person--
``(A) would have been eligible for an allotment under the
Act of May 17, 1906 (chapter 2469; 34 Stat. 197), as that Act
was in effect before December 18, 1971; and
``(B) is a veteran who served during the period between
January 1, 1969 and December 31, 1971 and--
``(i) served at least 6 months between January 1,
1969 and June 2, 1971; or
``(ii) enlisted or was drafted into military service
after June 2, 1971 but before December 3, 1971.
``(2) The personal representative of the estate of a decedent who
was eligible under subsection (b)(1) may, for the benefit of the heirs,
select an allotment if, during the period specified in subsection
(b)(1)(B), the decedent--
``(A) was killed in action;
``(B) was wounded in action and subsequently died as a
direct consequence of that wound, as determined by the
Department of Veterans Affairs; or
``(C) died while a prisoner of war.
``(3) No person who received an allotment or has a pending allotment
under the Act of May 17, 1906 may receive an allotment under this
section.
``(c) Study and Report.--(1) The Secretary of the Interior shall
conduct a study to identify and assess the circumstances of veterans of
the Vietnam era who--
[[Page 112 STAT. 2518]]
``(A) served during a period other than that specified in
subsection (b)(1)(B);
``(B) were eligible for an allotment under the Act of May
17, 1906; and
``(C) did not apply for an allotment under that Act.
``(2) <<NOTE: Deadline.>> The Secretary shall, within one year of
the enactment of this section, issue a written report on the study,
including findings and recommendations, to the Committee on
Appropriations and the Committee on Energy and Natural Resources in the
Senate and the Committee on Appropriations and the Committee on
Resources in the House of Representatives.
``(d) Definitions.--For the purposes of this section, the terms
`veteran' and `Vietnam era' have the meanings given those terms by
paragraphs (2) and (29), respectively, of section 101 of title 38,
United States Code.
``(e) Regulations.--No <<NOTE: Deadline.>> later than 18 months
after enactment of this section, the Secretary of the Interior shall
promulgate, after consultation with Alaska Natives groups, rules to
carry out this section.''.
Sec. 433. <<NOTE: Deadline.>> The Administrator of the National
Aeronautics and Space Administration shall develop and deliver to the
House and Senate Committees on Appropriations, no later than 60 days
after the date of the enactment of this Act, a study of alternative
approaches whereby NASA could contract with a Russian entity or entities
for goods and services related to the International Space Station. The
study shall evaluate, at a minimum, government-to-government,
government-to-industry, and industry-to-industry arrangements. The study
shall evaluate the pros and cons of each possible approach, addressing
the following requirements: (1) ensure that NASA receives value for each
dollar spent; (2) ensure that the funds provided can be audited; (3)
define appropriate milestones; and, (4) adhere to all relevant
technology transfer and export control laws.
Sec. 434. <<NOTE: Federal buildings and facilities.>> The National
Aeronautics and Space Administration Lewis Research Center in Cleveland,
Ohio, shall be redesignated as the ``National Aeronautics and Space
Administration John H. Glenn Research Center at Lewis Field''. Any
reference in a law, map, regulation, document, paper, or other record of
the United States to the National Aeronautics and Space Administration
Lewis Research Center in Ohio shall be deemed to be a reference to the
``National Aeronautics and Space Administration John H. Glenn Research
Center at Lewis Field''.
Sec. 435. The proposed Amendments to Accounting for Property, Plant,
and Equipment (February 1998) (Amending Statements of Federal Financial
Accounting Standards Nos. 6 and 8, ``Accounting for Property, Plant, and
Equipment'' and ``Supplementary Stewardship Reporting'') may be adopted
without the prior notification and waiting period required by section
307 of the Chief Financial Officers Act of 1990 (Public Law 101-576).
TITLE V--PUBLIC <<NOTE: Quality Housing and Work Responsibility Act of
1998.>> HOUSING AND TENANT-BASED ASSISTANCE REFORM
SEC. 501. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This <<NOTE: 42 USC 1437 note.>> title may be
cited as the ``Quality Housing and Work Responsibility Act of 1998''.
[[Page 112 STAT. 2519]]
(b) Table of Contents.--The table of contents for this title is as
follows:
TITLE V--PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM
Sec. 501. Short title and table of contents.
Sec. 502. Findings and purposes.
Sec. 503. Effective date and regulations.
Subtitle A--General Provisions
Sec. 505. Declaration of policy and public housing agency organization.
Sec. 506. Definitions.
Sec. 507. Minimum rent.
Sec. 508. Determination of adjusted income and median income.
Sec. 509. Family self-sufficiency program.
Sec. 510. Prohibition on use of funds.
Sec. 511. Public housing agency plan.
Sec. 512. Community service and family self-sufficiency requirements.
Sec. 513. Income targeting.
Sec. 514. Repeal of Federal preferences.
Sec. 515. Joint ventures and consortia of public housing agencies;
repeal of energy conservation provisions.
Sec. 516. Public housing agency mortgages and security interests.
Sec. 517. Mental health action plan.
Subtitle B--Public Housing
Part 1--Capital and Operating Assistance
Sec. 518. Contributions for lower income housing projects.
Sec. 519. Public housing capital and operating funds.
Sec. 520. Total development costs.
Sec. 521. Sanctions for improper use of amounts.
Sec. 522. Repeal of modernization fund.
Part 2--Admissions and Occupancy Requirements
Sec. 523. Family choice of rental payment.
Sec. 524. Occupancy by police officers and over-income families.
Sec. 525. Site-based waiting lists.
Sec. 526. Pet ownership.
Part 3--Management, Homeownership, and Demolition and Disposition
Sec. 529. Contract provisions.
Sec. 530. Housing quality requirements.
Sec. 531. Demolition and disposition of public housing.
Sec. 532. Resident councils and resident management corporations.
Sec. 533. Conversion of public housing to vouchers; repeal of family
investment centers.
Sec. 534. Transfer of management of certain housing to independent
manager at request of residents.
Sec. 535. Demolition, site revitalization, replacement housing, and
tenant-based assistance grants for projects.
Sec. 536. Homeownership.
Sec. 537. Required conversion of distressed public housing to tenant-
based assistance.
Sec. 538. Linking services to public housing residents.
Sec. 539. Mixed-finance public housing.
Subtitle C--Section 8 Rental and Homeownership Assistance
Sec. 545. Merger of certificate and voucher programs.
Sec. 546. Public housing agencies.
Sec. 547. Administrative fees.
Sec. 548. Law enforcement and security personnel in assisted housing.
Sec. 549. Advance notice to tenants of expiration, termination, or owner
nonrenewal of assistance contract.
Sec. 550. Technical and conforming amendments.
Sec. 551. Funding and allocation.
Sec. 552. Treatment of common areas.
Sec. 553. Portability.
Sec. 554. Leasing to voucher holders.
Sec. 555. Homeownership option.
[[Page 112 STAT. 2520]]
Sec. 556. Renewals.
Sec. 557. Manufactured housing demonstration program.
Sec. 558. Authorizations of appropriations.
Sec. 559. Rulemaking and implementation.
Subtitle D--Home Rule Flexible Grant Demonstration
Sec. 561. Home rule flexible grant demonstration program.
Subtitle E--Accountability and Oversight of Public Housing Agencies
Sec. 563. Study of alternative methods for evaluating public housing
agencies.
Sec. 564. Public housing management assessment program.
Sec. 565. Expansion of powers for dealing with public housing agencies
in substantial default.
Sec. 566. Audits.
Sec. 567. Advisory council for housing authority of New Orleans.
Sec. 568. Treatment of troubled PHA's.
Subtitle F--Safety and Security in Public and Assisted Housing
Sec. 575. Provisions applicable only to public housing and section 8
assistance.
Sec. 576. Screening of applicants for federally assisted housing.
Sec. 577. Termination of tenancy and assistance for illegal drug users
and alcohol abusers in federally assisted housing.
Sec. 578. Ineligibility of dangerous sex offenders for admission to
public housing.
Sec. 579. Definitions.
Subtitle G--Repeals and Related Provisions
Sec. 581. Annual report.
Sec. 582. Repeals relating to public housing and section 8 programs.
Sec. 583. Public housing flexibility in CHAS.
Sec. 584. Use of American products.
Sec. 585. GAO study on housing assistance program costs.
Sec. 586. Amendments to Public and Assisted Housing Drug Elimination Act
of 1990.
Sec. 587. Review of drug elimination program contracts.
Sec. 588. Prohibition on use of assistance for employment relocation
activities.
Sec. 589. Treatment of occupancy standards.
Sec. 590. Income eligibility for HOME and CDBG programs.
Sec. 591. Report on single family and multifamily homes.
Sec. 592. Use of assisted housing by aliens.
Sec. 593. Protection of senior homeowners under reverse mortgage
program.
Sec. 594. Housing counseling.
Sec. 595. Native American housing assistance.
Sec. 596. CDBG public services cap.
Sec. 597. Moderate rehabilitation program.
Sec. 598. National cities in schools program.
Sec. 599. Tenant participation in multifamily housing projects.
Sec. 599A. Clarification regarding recreational vehicles.
Sec. 599B. Determination of low-income eligibility for homeownership
assistance.
Sec. 599C. Amendments to rural housing programs.
Sec. 599D. Reauthorization of national flood insurance program.
Sec. 599E. Assistance for self-help housing providers
Sec. 599F. Special mortgage insurance assistance.
Sec. 599G. Rehabilitation demonstration grant program.
Sec. 599H. Assistance for certain localities.
SEC. 502. <<NOTE: 42 USC 1437 note.>> FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) there exists throughout the Nation a need for decent,
safe, and affordable housing;
(2) the inventory of public housing units owned, assisted,
or operated by public housing agencies, an asset in which the
Federal Government has invested over $90,000,000,000, has
traditionally provided rental housing that is affordable to low-
income persons;
(3) despite serving this critical function, the public
housing system is plagued by a series of problems, including the
concentration of very poor people in very poor neighborhoods and
disincentives for economic self-sufficiency;
[[Page 112 STAT. 2521]]
(4) the Federal method of overseeing every aspect of public
housing by detailed and complex statutes and regulations has
aggravated the problem and has placed excessive administrative
burdens on public housing agencies; and
(5) the interests of low-income persons, and the public
interest, will best be served by a reformed public housing
program that--
(A) consolidates many public housing programs into
programs for the operation and capital needs of public
housing;
(B) streamlines program requirements;
(C) vests in public housing agencies that perform
well the maximum feasible authority, discretion, and
control with appropriate accountability to public
housing residents, localities, and the general public;
and
(D) rewards employment and economic self-sufficiency
of public housing residents.
(b) Purposes.--The purpose of this title is to promote homes that
are affordable to low-income families in safe and healthy environments,
and thereby contribute to the supply of affordable housing, by--
(1) deregulating and decontrolling public housing agencies,
thereby enabling them to perform as property and asset managers;
(2) providing for more flexible use of Federal assistance to
public housing agencies, allowing the authorities to leverage
and combine assistance amounts with amounts obtained from other
sources;
(3) facilitating mixed income communities and decreasing
concentrations of poverty in public housing;
(4) increasing accountability and rewarding effective
management of public housing agencies;
(5) creating incentives and economic opportunities for
residents of dwelling units assisted by public housing agencies
to work, become self-sufficient, and transition out of public
housing and federally assisted dwelling units;
(6) consolidating the voucher and certificate programs for
rental assistance under section 8 of the United States Housing
Act of 1937 into a single market-driven program that will assist
in making tenant-based rental assistance under such section more
successful at helping low-income families obtain affordable
housing and will increase housing choice for low-income
families; and
(7) remedying the problems of troubled public housing
agencies and replacing or revitalizing severely distressed
public housing projects.
SEC. 503. <<NOTE: 42 USC 1437 note.>> EFFECTIVE DATE AND REGULATIONS.
(a) In General.--The amendments under this title are made on the
date of the enactment of this Act, but this title shall take effect, and
the amendments made by this title shall apply beginning upon, October 1,
1999, except--
(1) as otherwise specifically provided in this title; or
(2) as otherwise specifically provided in any amendment made
by this title.
The Secretary may, by notice, implement any provision of this title or
any amendment made by this title before such date, except
[[Page 112 STAT. 2522]]
to the extent that such provision or amendment specifically provides
otherwise.
(b) Savings Provision.--Notwithstanding any amendment under this
title that is made (in accordance with subsection (a)) on the date of
the enactment of this Act but applies beginning on October 1, 1999, the
provisions of law amended by such amendment, as such provisions were in
effect immediately before the making of such amendment, shall continue
to apply during the period beginning on the date of the enactment of
this Act and ending upon October 1, 1999, unless otherwise specifically
provided by this title.
(c) Technical <<NOTE: Deadline.>> Recommendations.--Not later than 9
months after the date of the enactment of this Act, the Secretary shall
submit to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Banking and Financial Services of the House
of Representatives, recommended technical and conforming legislative
changes necessary to carry out this title and the amendments made by
this title.
(d) List <<NOTE: Deadline. Federal Register, publication.>> of
Obsolete Documents.--Not later than October 1, 1999, the Secretary of
Housing and Urban Development shall cause to be published in the Federal
Register a list of all rules, regulations, and orders (including all
handbooks, notices, and related requirements) pertaining to public
housing or section 8 tenant-based programs issued or promulgated under
the United States Housing Act of 1937 before the date of the enactment
of this Act that are or will be obsolete because of the enactment of
this Act or are otherwise obsolete.
(e) Protection of Certain Regulations.--No provision of this title
may be construed to repeal the regulations of the Secretary regarding
tenant participation and tenant opportunities in public housing (24
C.F.R. 964).
(g) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
Subtitle A--General Provisions
SEC. 505. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY ORGANIZATION.
Section 2 of the United States Housing Act of 1937 (42 U.S.C. 1437)
is amended to read as follows:
``SEC. 2. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY ORGANIZATION.
``(a) Declaration of Policy.--It is the policy of the United
States--
``(1) to promote the general welfare of the Nation by
employing the funds and credit of the Nation, as provided in
this Act--
``(A) to assist States and political subdivisions of
States to remedy the unsafe housing conditions and the
acute shortage of decent and safe dwellings for low-
income families;
``(B) to assist States and political subdivisions of
States to address the shortage of housing affordable to
low-income families; and
[[Page 112 STAT. 2523]]
``(C) consistent with the objectives of this title,
to vest in public housing agencies that perform well,
the maximum amount of responsibility and flexibility in
program administration, with appropriate accountability
to public housing residents, localities, and the general
public;
``(2) that the Federal Government cannot through its direct
action alone provide for the housing of every American citizen,
or even a majority of its citizens, but it is the responsibility
of the Government to promote and protect the independent and
collective actions of private citizens to develop housing and
strengthen their own neighborhoods;
``(3) that the Federal Government should act where there is
a serious need that private citizens or groups cannot or are not
addressing responsibly; and
``(4) that our Nation should promote the goal of providing
decent and affordable housing for all citizens through the
efforts and encouragement of Federal, State, and local
governments, and by the independent and collective actions of
private citizens, organizations, and the private sector.
``(b) Public Housing Agency Organization.--
``(1) Required membership.--Except as provided in paragraph
(2), the membership of the board of directors or similar
governing body of each public housing agency shall contain not
less than 1 member--
``(A) who is directly assisted by the public housing
agency; and
``(B) who may, if provided for in the public housing
agency plan, be elected by the residents directly
assisted by the public housing agency.
``(2) Exception.--Paragraph (1) shall not apply to any
public housing agency--
``(A) that is located in a State that requires the
members of the board of directors or similar governing
body of a public housing agency to be salaried and to
serve on a full-time basis; or
``(B) with less than 300 public housing units, if--
``(i) the agency has provided reasonable
notice to the resident advisory board of the
opportunity of not less than 1 resident described
in paragraph (1) to serve on the board of
directors or similar governing body of the public
housing agency pursuant to such paragraph; and
``(ii) within a reasonable time after receipt
by the resident advisory board established by the
agency pursuant to section 5A(e) of notice under
clause (i), the public housing agency has not been
notified of the intention of any resident to
participate on the board of directors.
``(3) Nondiscrimination.--No person shall be prohibited from
serving on the board of directors or similar governing body of a
public housing agency because of the residence of that person in
a public housing project or status as assisted under section
8.''.
SEC. 506. DEFINITIONS.
Section 3(b) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)) is amended as follows:
[[Page 112 STAT. 2524]]
(1) Public housing.--In paragraph (1), by inserting after
the second sentence the following new sentence: ``The term
`public housing' includes dwelling units in a mixed finance
project that are assisted by a public housing agency with
capital or operating assistance.''.
(2) Single persons.--In paragraph (3)--
(A) in subparagraph (A), by striking the third
sentence; and
(B) in subparagraph (B), in the second sentence, by
striking ``regulations of the Secretary'' and inserting
``public housing agency plan''.
(3) Person with disabilities.--In paragraph (3)(E), by
adding after the period at the end the following new sentences:
``Notwithstanding any other provision of law, no individual
shall be considered a person with disabilities, for purposes of
eligibility for low-income housing under this title, solely on
the basis of any drug or alcohol dependence. The Secretary shall
consult with other appropriate Federal agencies to implement the
preceding sentence.''.
(4) New terms.--Section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)) is amended by adding at the end
the following new paragraphs:
``(9) Drug-related criminal activity.--The term `drug-related
criminal activity' means the illegal manufacture, sale, distribution,
use, or possession with intent to manufacture, sell, distribute, or use,
of a controlled substance (as such term is defined in section 102 of the
Controlled Substances Act).
``(10) Mixed-finance project.--The term `mixed-finance project'
means a public housing project that meets the requirements of section
35.
``(11) Public housing agency plan.--The term `public housing agency
plan' means the plan of a public housing agency prepared in accordance
with section 5A.
``(12) Capital fund.--The term `Capital Fund' means the fund
established under section 9(d).
``(13) Operating fund.--The term `Operating Fund' means the fund
established under section 9(e).''.
SEC. 507. MINIMUM RENT.
(a) In General.--Section 3(a) of the United States Housing Act of
1937 (42 U.S.C. 1437a(a)) is amended by adding at the end the following
new paragraph:
``(3) Minimum rental amount.--
``(A) Requirement.--Notwithstanding paragraph (1) of this
subsection, the method for rent determination elected pursuant
to paragraph (2)(A) of this subsection by a family residing in
public housing, section 8(o)(2) of this Act, or section 206(d)
of the Housing and Urban-Rural Recovery Act of 1983 (including
paragraph (5) of such section), the following entities shall
require the following families to pay a minimum monthly rental
amount (which amount shall include any amount allowed for
utilities) of not more than $50 per month, as follows:
``(i) Each public housing agency shall require the
payment of such minimum monthly rental amount, which
amount shall be determined by the agency, by--
``(I) each family residing in a dwelling unit
in public housing by the agency;
[[Page 112 STAT. 2525]]
``(II) each family who is assisted under the
certificate or moderate rehabilitation program
under section 8; and
``(III) each family who is assisted under the
voucher program under section 8, and the agency
shall reduce the monthly assistance payment on
behalf of such family as may be necessary to
ensure payment of such minimum monthly rental
amount.
``(ii) The Secretary shall require each family who
is assisted under any other program for rental
assistance under section 8 to pay such minimum monthly
rental amount, which amount shall be determined by the
Secretary.
``(B) Exception for hardship circumstances.--
``(i) In general.--Notwithstanding subparagraph (A),
a public housing agency (or the Secretary, in the case
of a family described in subparagraph (A)(ii)) shall
immediately grant an exemption from application of the
minimum monthly rental under such subparagraph to any
family unable to pay such amount because of financial
hardship, which shall include situations in which (I)
the family has lost eligibility for or is awaiting an
eligibility determination for a Federal, State, or local
assistance program, including a family that includes a
member who is an alien lawfully admitted for permanent
residence under the Immigration and Nationality Act who
would be entitled to public benefits but for title IV of
the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996; (II) the family would be
evicted as a result of the imposition of the minimum
rent requirement under subparagraph (A); (III) the
income of the family has decreased because of changed
circumstance, including loss of employment; (IV) a death
in the family has occurred; and (V) other situations as
may be determined by the agency (or the Secretary, in
the case of a family described in subparagraph (A)(ii)).
``(ii) Waiting period.--If a resident requests a
hardship exemption under this subparagraph and the
public housing agency (or the Secretary, in the case of
a family described in subparagraph (A)(ii)) reasonably
determines the hardship to be of a temporary nature, an
exemption shall not be granted during the 90-day period
beginning upon the making of a request for the
exemption. A resident may not be evicted during such 90-
day period for nonpayment of rent. In such a case, if
the resident thereafter demonstrates that the financial
hardship is of a long-term basis, the agency (or the
Secretary) shall retroactively exempt the resident from
the applicability of the minimum rent requirement for
such 90-day period.''.
(b) Repeal of Duplicative Provisions.--Section 402 of the Balanced
Budget Downpayment Act, I (Public Law 104-99; 110 Stat. 40) is amended
by striking subsection (a).
(c) Conforming Amendment.--The third sentence of section 3(a)(1) of
the United States Housing Act of 1937 (42 U.S.C. 1437a(a)(1)) is amended
by inserting ``and subject to the requirement under paragraph (3)''
before the first comma.
[[Page 112 STAT. 2526]]
(d) Effective <<NOTE: 42 USC 1437a note.>> Date.--The amendments
under this section are made on, and shall apply beginning upon, the date
of the enactment of this Act.
SEC. 508. DETERMINATION OF ADJUSTED INCOME AND MEDIAN INCOME.
(a) Adjusted Income.--Paragraph (5) of section 3(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)(5) is amended to read as
follows:
``(5) Adjusted income.--The term `adjusted income' means, with
respect to a family, the amount (as determined by the public housing
agency) of the income of the members of the family residing in a
dwelling unit or the persons on a lease, after any income exclusions as
follows:
``(A) Mandatory exclusions.--In determining adjusted income,
a public housing agency shall exclude from the annual income of
a family the following amounts:
``(i) Elderly and disabled families.--$400 for any
elderly or disabled family.
``(ii) Medical expenses.--The amount by which 3
percent of the annual family income is exceeded by the
sum of--
``(I) unreimbursed medical expenses of any
elderly family or disabled family;
``(II) unreimbursed medical expenses of any
family that is not covered under subclause (I),
except that this subclause shall apply only to the
extent approved in appropriation Acts; and
``(III) unreimbursed reasonable attendant care
and auxiliary apparatus expenses for each
handicapped member of the family, to the extent
necessary to enable any member of such family
(including such handicapped member) to be
employed.
``(iii) Child care expenses.--Any reasonable child
care expenses necessary to enable a member of the family
to be employed or to further his or her education.
``(iv) Minors, students, and persons with
disabilities.--$480 for each member of the family
residing in the household (other than the head of the
household or his or her spouse) who is less than 18
years of age or is attending school or vocational
training on a full-time basis, or who is 18 years of age
or older and is a person with disabilities.
``(v) Child support payments.--Any payment made by a
member of the family for the support and maintenance of
any child who does not reside in the household, except
that the amount excluded under this clause may not
exceed $480 for each child for whom such payment is
made; except that this clause shall apply only to the
extent approved in appropriations Acts.
``(vi) Spousal <<NOTE: Applicability.>> support
expenses.--Any payment made by a member of the family
for the support and maintenance of any spouse or former
spouse who does not reside in the household, except that
the amount excluded under this clause shall not exceed
the lesser of (I) the amount that such family member has
a legal obligation to pay, or (II) $550 for each
individual for whom such payment
[[Page 112 STAT. 2527]]
is made; except that this clause shall apply only to the
extent approved in appropriations Acts.
``(vii) Earned income of minors.--The amount of any
earned income of a member of the family who is not--
``(I) 18 years of age or older; and
``(II) the head of the household (or the
spouse of the head of the household).
``(B) Permissive exclusions for public housing.--In
determining adjusted income, a public housing agency may, in the
discretion of the agency, establish exclusions from the annual
income of a family residing in a public housing dwelling unit.
Such exclusions may include the following amounts:
``(i) Excessive travel expenses.--Excessive travel
expenses in an amount not to exceed $25 per family per
week, for employment- or education-related travel.
``(ii) Earned income.--An amount of any earned
income of the family, established at the discretion of
the public housing agency, which may be based on--
``(I) all earned income of the family,
``(II) the amount earned by particular members
of the family;
``(III) the amount earned by families having
certain characteristics; or
``(IV) the amount earned by families or
members during certain periods or from certain
sources.
``(iii) Others.--Such other amounts for other
purposes, as the public housing agency may establish.''.
(b) Disallowance of Earned Income From Public Housing Rent
Determinations.--
(1) In general.--Section 3 of the United States Housing Act
of 1937 (42 U.S.C. 1437a) is amended--
(A) by striking the undesignated paragraph that
follows subsection (c)(3) (as added by section 515(b) of
the Cranston-Gonzalez National Affordable Housing Act
(Public Law 101-625; 104 Stat. 4199)); and
(B) by adding at the end the following new
subsections:
``(d) Disallowance of Earned Income From Rent Determinations.--
``(1) In general.--Notwithstanding any other provision of
law, the rent payable under subsection (a) by a family described
in paragraph (3) of this subsection may not be increased as a
result of the increased income due to such employment during the
12-month period beginning on the date on which the employment is
commenced.
``(2) Phase-in of rent increases.--Upon the expiration of
the 12-month period referred to in paragraph (1), the rent
payable by a family described in paragraph (3) may be increased
due to the continued employment of the family member described
in paragraph (3)(B), except that during the 12-month period
beginning upon such expiration the amount of the increase may
not be greater than 50 percent of the amount of the total rent
increase that would be applicable but for this paragraph.
``(3) Eligible families.--A family described in this
paragraph is a family--
``(A) that--
[[Page 112 STAT. 2528]]
``(i) occupies a dwelling unit in a public
housing project; or
``(ii) receives assistance under section 8;
and
``(B)(i) whose income increases as a result of
employment of a member of the family who was previously
unemployed for 1 or more years;
``(ii) whose earned income increases during the
participation of a family member in any family self-
sufficiency or other job training program; or
``(iii) who is or was, within 6 months, assisted
under any State program for temporary assistance for
needy families funded under part A of title IV of the
Social Security Act and whose earned income increases.
``(4) Applicability.--This subsection and subsection (e)
shall apply beginning upon October 1, 1999, except that this
subsection and subsection (e) shall apply with respect to any
family described in paragraph 3(A)(ii) only to the extent
provided in advance in appropriations Acts.
``(e) Individual Savings Accounts.--
``(1) In general.--In lieu of a disallowance of earned
income under subsection (d), upon the request of a family that
qualifies under subsection (d), a public housing agency may
establish an individual savings account in accordance with this
subsection for that family.
``(2) Deposits to account.--The public housing agency shall
deposit in any savings account established under this subsection
an amount equal to the total amount that otherwise would be
applied to the family's rent payment under subsection (a) as a
result of employment.
``(3) Withdrawal from account.--Amounts deposited in a
savings account established under this subsection may only be
withdrawn by the family for the purpose of--
``(A) purchasing a home;
``(B) paying education costs of family members;
``(C) moving out of public or assisted housing; or
``(D) paying any other expense authorized by the
public housing agency for the purpose of promoting the
economic self-sufficiency of residents of public and
assisted housing.''.
(2) Savings <<NOTE: Applicability. 42 USC 1437a
note.>> provision.--Notwithstanding the amendment made by
paragraph (1), the provisions of the undesignated paragraph at
the end of section 3(c)(3) of the United States Housing Act of
1937, as such section was in effect immediately before the
enactment of this Act, shall continue to apply until the
effective date under section 503 of this Act. Notwithstanding
the amendment made by subsection (a) of this section, nor the
applicability under section 402(f ) of The Balanced Budget
Downpayment Act, I (42 U.S.C. 1437a note) of the amendments made
by such section 402, nor any repeal of such section 402(f ), the
provisions of section 3(b)(5)(G) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)(5)(G)), as such section was in
effect immediately before the date of the enactment of this Act,
shall continue to apply until the effective date under section
503 of this Act.
(c) Median Income.--
(1) In general.--Section 3(b)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended--
(A) in the 4th sentence--
[[Page 112 STAT. 2529]]
(i) by striking ``County'' and inserting ``and
Rockland Counties''; and
(ii) by inserting ``each'' before ``such
county'';
(B) in the last sentence--
(i) by striking ``County'' the 1st place it
appears and inserting ``or Rockland Counties'';
and
(ii) by striking ``County'' the 2d place it
appears and inserting ``and Rockland Counties'';
and
(C) <<NOTE: New York.>> by adding at the end the
following new sentences: ``In determining areas that are
designated as difficult development areas for purposes
of the low-income housing tax credit, the Secretary
shall include Westchester and Rockland Counties, New
York, in the New York City metropolitan area.''.
(2) Applicability.--The <<NOTE: 42 USC 1437a
note.>> amendments made by this paragraph are made on, and shall
apply beginning upon, the date of the enactment of this Act.
(d) Availability of Income Matching Information.--
(1) Availability.--Section 3 of the United States Housing
Act of 1937 (42 U.S.C. 1437a), as amended by the preceding
provisions of this Act, is further amended by adding at the end
the following new subsection:
``(f ) Availability of Income Matching Information.--
``(1) Disclosure to pha.--A public housing agency shall
require any family described in paragraph (2) who receives
information regarding income, earnings, wages, or unemployment
compensation from the Department of Housing and Urban
Development pursuant to income verification procedures of the
Department to disclose such information, upon receipt of the
information, to the public housing agency that owns or operates
the public housing dwelling unit in which such family resides or
that provides the housing assistance under this Act on behalf of
such family, as applicable.
``(2) Families covered.--A family described in this
paragraph is a family that resides in a dwelling unit--
``(A) that is a public housing dwelling unit; or
``(B) for which tenant-based assistance is provided
under section 8.''.
(2) Protection of applicants and participants.--Section 904
of the Stewart B. McKinney Homeless Assistance Amendments Act of
1988 (42 U.S.C. 3544) is amended--
(A) in subsection (b)--
(i) in paragraph (2), by striking ``and'' at
the end;
(iii) in paragraph (3), by striking the period
at the end and inserting ``; and''; and
(ii) by adding at the end the following new
paragraph:
``(4) only in the case of an applicant or participant that
is a member of a family described in section 3(f )(2) of the
United States Housing Act of 1937 (42 U.S.C. 1437a(f )(2)), sign
an agreement under which the applicant or participant agrees to
provide to the appropriate public housing agency the information
required under section 3(f )(1) of such Act for the sole purpose
of the public housing agency verifying income information
pertinent to the applicant's or participant's eligibility or
level of benefits, and comply with such agreement.''; and
[[Page 112 STAT. 2530]]
(B) in subsection (c)--
(i) in paragraph (2)(A), in the matter
preceding clause (i)--
(I) by inserting before ``or'' the
first place it appears the following:
``, pursuant to section 3(d)(1) of the
United States Housing Act of 1937 from
the applicant or participant,''; and
(II) by inserting ``or 3(d)(1)''
after ``such section 303(i)''; and
(ii) in paragraph (3)--
(I) in subparagraph (A), by
inserting ``, section 3(d)(1) of the
United States Housing Act of 1937,''
after ``Social Security Act'';
(II) in subparagraph (A), by
inserting ``or agreement, as
applicable,'' after ``consent'';
(III) in subparagraph (B), by
inserting ``section 3(d)(1) of the
United States Housing Act of 1937,''
after ``Social Security Act,''; and
(IV) in subparagraph (B), by
inserting `` such section 3(d)(1),''
after ``such section 303(i),'' each
place it appears.
SEC. 509. FAMILY SELF-SUFFICIENCY PROGRAM.
(a) In General.--Section 23 of the United States Housing Act of 1937
(42 U.S.C. 1437u(b)) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``and''
at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting ``, subject to the
limitations in paragraph (4); and''; and
(iii) by adding at the end the following new
subparagraph:
``(C) effective on the date of the enactment of the
Quality Housing and Work Responsibility Act of 1998, to
the extent an agency is not required to carry out a
program pursuant to subparagraph (B) of this paragraph
and paragraph (4), may carry out a local Family Self-
Sufficiency program under this section.'';
(B) in paragraph (3), by striking ``Each'' and
inserting ``Subject to paragraph (4), each'';
(C) by redesignating paragraph (4) as paragraph (5);
and
(D) by inserting after paragraph (3) the following
new paragraph:
``(4) Termination of requirement to expand program.--
``(A) In general.--Notwithstanding any other
provision of law, a public housing agency that receives
incremental assistance under subsection (b) or (o) of
section 8 or that makes available new public housing
dwelling units shall not be required, after the
enactment of the Quality Housing and Work Responsibility
Act of 1998, to provide assistance under a local Family
Self-Sufficiency program under this section to any
families not required to be assisted under subparagraph
(B) of this paragraph.
``(B) Continuation of existing obligations.--
[[Page 112 STAT. 2531]]
``(i) In general.--Each public housing agency
that, before the enactment of the Quality Housing
and Work Responsibility Act of 1998, was required
under this section to carry out a local Family
Self-Sufficiency program shall continue to operate
such local program for the number of families
determined under paragraph (3), subject only to
the availability under appropriations Acts of
sufficient amounts for housing assistance.
``(ii) Reduction.--The number of families for
which an agency is required under clause (i) to
operate such local program shall be decreased by
one for each family that, after enactment of the
Quality Housing and Work Responsibility Act of
1998, fulfills its obligations under the contract
of participation.'';
(2) in subsection (d), by striking the second paragraph that
is designated as paragraph (3) (relating to use of escrow
savings accounts for section 8 homeownership; as added by
section 185(b) of the Housing and Community Development Act of
1992 (Public Law 102-550; 106 Stat. 3747)); and
(3) in subsection (f )(1), by inserting ``carrying out a
local program under this section'' after ``Each public housing
agency''.
(b) Applicability.--The <<NOTE: 42 USC 1437o note.>> amendments made
by this subsection are made on, and shall apply beginning upon, the date
of the enactment of this Act.
SEC. 510. PROHIBITION ON USE OF FUNDS.
Section 5 of the United States Housing Act of 1937 (42 U.S.C.
1437c)) is amended by adding at the end the following new subsection:
``(l) Prohibition on Use of Funds.--None of the funds made available
to the Department of Housing and Urban Development to carry out this
Act, which are obligated to State or local governments, public housing
agencies, housing finance agencies, or other public or quasi-public
housing agencies, shall be used to indemnify contractors or
subcontractors of the government or agency against costs associated with
judgments of infringement of intellectual property rights.''.
SEC. 511. PUBLIC HOUSING AGENCY PLAN.
(a) In General.--Title I of the United States Housing Act of 1937
(42 U.S.C. 1437 et seq.) is amended by inserting after section 5 the
following new section:
``SEC. 5A. <<NOTE: 42 USC 1437c-1.>> PUBLIC HOUSING AGENCY PLANS.
``(a) 5-Year Plan.--
``(1) In general.--Subject to paragraph (2), not less than
once every 5 fiscal years, each public housing agency shall
submit to the Secretary a plan that includes, with respect to
the 5 fiscal years immediately following the date on which the
plan is submitted--
``(A) a statement of the mission of the public
housing agency for serving the needs of low-income and
very low-income families in the jurisdiction of the
public housing agency during such fiscal years; and
``(B) a statement of the goals and objectives of the
public housing agency that will enable the public
housing agency to serve the needs identified pursuant to
subparagraph (A) during those fiscal years.
[[Page 112 STAT. 2532]]
``(2) Initial plan.--The initial 5-year plan submitted by a
public housing agency under this subsection shall be submitted
for the 5-year period beginning on October 1, 1999, or the first
fiscal year thereafter for which the public housing agency
initially receives assistance under this Act.
``(b) Annual Plan.--
``(1) In general.--Effective <<NOTE: Effective
date.>> beginning upon October 1, 1999, each public housing
agency shall submit to the Secretary an annual public housing
agency plan under this subsection for each fiscal year for which
the public housing agency receives assistance under section 8(o)
or 9.
``(2) Updates.--For each fiscal year after the initial
submission of an annual plan under this subsection by a public
housing agency, the public housing agency may comply with
requirements for submission of a plan under this subsection by
submitting an update of the plan for the fiscal year.
``(c) Procedures.--
``(1) In general.--The Secretary shall establish
requirements and procedures for submission and review of plans,
including requirements for timing and form of submission, and
for the contents of such plans.
``(2) Contents.--The procedures established under paragraph
(1) shall provide that a public housing agency shall--
``(A) in developing the plan consult with the
resident advisory board established under subsection
(e); and
``(B) ensure that the plan under this section is
consistent with the applicable comprehensive housing
affordability strategy (or any consolidated plan
incorporating such strategy) for the jurisdiction in
which the public housing agency is located, in
accordance with title I of the Cranston-Gonzalez
National Affordable Housing Act, and contains a
certification by the appropriate State or local official
that the plan meets the requirements of this paragraph
and a description of the manner in which the applicable
contents of the public housing agency plan are
consistent with the comprehensive housing affordability
strategy.
``(d) Contents.--An annual public housing agency plan under
subsection (b) for a public housing agency shall contain the following
information relating to the upcoming fiscal year for which the
assistance under this Act is to be made available:
``(1) Needs.--A statement of the housing needs of low-income
and very low-income families residing in the jurisdiction served
by the public housing agency, and of other low-income and very
low-income families on the waiting list of the agency (including
housing needs of elderly families and disabled families), and
the means by which the public housing agency intends, to the
maximum extent practicable, to address those needs.
``(2) Financial resources.--A statement of financial
resources available to the agency and the planned uses of those
resources.
``(3) Eligibility, selection, and admissions policies.--A
statement of the policies governing eligibility, selection,
admissions (including any preferences), assignment, and
occupancy of families with respect to public housing dwelling
units and housing assistance under section 8(o), including--
[[Page 112 STAT. 2533]]
``(A) the procedures for maintaining waiting lists
for admissions to public housing projects of the agency,
which may include a system of site-based waiting lists
under section 6(r); and
``(B) the admissions policy under section
16(a)(3)(B) for deconcentration of lower-income
families.
``(4) Rent determination.--A statement of the policies of
the public housing agency governing rents charged for public
housing dwelling units and rental contributions of families
assisted under section 8(o).
``(5) Operation and management.--A statement of the rules,
standards, and policies of the public housing agency governing
maintenance and management of housing owned, assisted, or
operated by the public housing agency (which shall include
measures necessary for the prevention or eradication of pest
infestation, including by cockroaches), and management of the
public housing agency and programs of the public housing agency.
``(6) Grievance procedure.--A statement of the grievance
procedures of the public housing agency.
``(7) Capital improvements.--With respect to public housing
projects owned, assisted, or operated by the public housing
agency, a plan describing the capital improvements necessary to
ensure long-term physical and social viability of the projects.
``(8) Demolition and disposition.--With respect to public
housing projects owned by the public housing agency--
``(A) a description of any housing for which the PHA
will apply for demolition or disposition under section
18; and
``(B) a timetable for the demolition or disposition.
``(9) Designation of housing for elderly and disabled
families.--With respect to public housing projects owned,
assisted, or operated by the public housing agency, a
description of any projects (or portions thereof) that the
public housing agency has designated or will apply for
designation for occupancy by elderly and disabled families in
accordance with section 7.
``(10) Conversion of public housing.--With respect to public
housing owned by a public housing agency--
``(A) a description of any building or buildings
that the public housing agency is required to convert to
tenant-based assistance under section 33 or that the
public housing agency plans to voluntarily convert under
section 22;
``(B) an analysis of the projects or buildings
required to be converted under section 33; and
``(C) a statement of the amount of assistance
received under this Act to be used for rental assistance
or other housing assistance in connection with such
conversion.
``(11) Homeownership.--A description of any homeownership
programs of the agency under section 8(y) or for which the
public housing agency has applied or will apply for approval
under section 32.
``(12) Community service and self-sufficiency.--A
description of--
``(A) any programs relating to services and
amenities provided or offered to assisted families;
[[Page 112 STAT. 2534]]
``(B) any policies or programs of the public housing
agency for the enhancement of the economic and social
self-sufficiency of assisted families;
``(C) how the public housing agency will comply with
the requirements of subsections (c) and (d) of section
12 (relating to community service and treatment of
income changes resulting from welfare program
requirements).
``(13) Safety and crime prevention.--A plan established by
the public housing agency, which shall be subject to the
following requirements:
``(A) Safety measures.--The plan shall provide, on a
project-by-project or jurisdiction-wide basis, for
measures to ensure the safety of public housing
residents.
``(B) Establishment.--The plan shall be established
in consultation with the police officer or officers in
command for the appropriate precinct or police
department.
``(C) Content.--The plan shall describe the need for
measures to ensure the safety of public housing
residents and for crime prevention measures, describe
any such activities conducted or to be conducted by the
agency, and provide for coordination between the agency
and the appropriate police precincts for carrying out
such measures and activities.
``(D) Secretarial action.--If the Secretary
determines, at any time, that the security needs of a
project are not being adequately addressed by the plan,
or that the local police precinct is not complying with
the plan, the Secretary may mediate between the public
housing agency and the local precinct to resolve any
issues of conflict.
``(14) Pets.--The requirements of the agency, pursuant to
section 31, relating to pet ownership in public housing.
``(15) Civil rights certification.--A certification by the
public housing agency that the public housing agency will carry
out the public housing agency plan in conformity with title VI
of the Civil Rights Act of 1964, the Fair Housing Act, section
504 of the Rehabilitation Act of 1973, and title II of the
Americans with Disabilities Act of 1990, and will affirmatively
further fair housing.
``(16) Annual audit.--The results of the most recent fiscal
year audit of the public housing agency under section 5(h)(2).
``(17) Asset management.--A statement of how the agency will
carry out its asset management functions with respect to the
public housing inventory of the agency, including how the agency
will plan for the long-term operating, capital investment,
rehabilitation, modernization, disposition, and other needs for
such inventory.
``(18) Other.--Any other information required by law to be
included in a public housing agency plan.
``(e) Resident Advisory Board.--
``(1) In <<NOTE: Establishment.>> general.--Except as
provided in paragraph (3), each public housing agency shall
establish 1 or more resident advisory boards in accordance with
this subsection, the membership of which shall adequately
reflect and represent the residents assisted by the public
housing agency.
``(2) Functions.--Each resident advisory board established
under this subsection by a public housing agency shall assist
[[Page 112 STAT. 2535]]
and make recommendations regarding the development of the public
housing agency plan for the agency. The agency shall consider
the recommendations of the resident advisory boards in preparing
the final public housing agency plan, and shall include, in the
public housing agency plan submitted to the Secretary under this
section, a copy of the recommendations and a description of the
manner in which the recommendations were addressed.
``(3) Waiver.--The Secretary may waive the requirements of
this subsection with respect to the establishment of resident
advisory boards for a public housing agency if the agency
demonstrates to the satisfaction of the Secretary that there
exist resident councils or other resident organizations of the
public housing agency that--
``(A) adequately represent the interests of the
residents of the public housing agency; and
``(B) have the ability to perform the functions
described in paragraph (2).
``(1) In general.--In developing a public housing agency
plan under this section, the board of directors or similar
governing body of a public housing agency shall conduct a public
hearing to discuss the public housing agency plan and to invite
public comment regarding that plan. The hearing shall be
conducted at a location that is convenient to residents.
``(2) Availability <<NOTE: Deadline.>> of information and
notice.--Not later than 45 days before the date of a hearing
conducted under paragraph (1), the public housing agency shall--
``(A) make the proposed public housing agency plan
and all information relevant to the hearing and proposed
plan available for inspection by the public at the
principal office of the public housing agency during
normal business hours; and
``(B) publish a notice informing the public that--
``(i) that the information is available as
required under subparagraph (A); and
``(ii) that a public hearing under paragraph
(1) will be conducted.
``(3) Adoption of plan.--A public housing agency may adopt a
public housing agency plan and submit the plan to the Secretary
in accordance with this section only after--
``(A) conducting a public hearing under paragraph
(1);
``(B) considering all public comments received; and
``(C) making any appropriate changes in the public
housing agency plan, in consultation with the resident
advisory board.
``(4) Advisory board consultation enforcement.--Pursuant to
a written request made by the resident advisory board for a
public housing agency that documents a failure on the part of
the agency to provide adequate notice and opportunity for
comment under this subsection and a finding by the Secretary of
good cause within the time period provided for in subsection
(i)(4), the Secretary may require the public housing agency to
adequately remedy such failure before final approval of the
public housing agency plan under this section.
``(g) Amendments and Modifications to Plans.--
``(1) In general.--Except as provided in paragraph (2),
nothing in this section shall preclude a public housing agency,
[[Page 112 STAT. 2536]]
after submitting a plan to the Secretary in accordance with this
section, from amending or modifying any policy, rule,
regulation, or plan of the public housing agency, except that a
significant amendment or modification may not--
``(A) be adopted, other than at a duly called
meeting of board of directors (or similar governing
body) of the public housing agency that is open to the
public; and
``(B) be implemented, until notification of the
amendment or modification is provided to the Secretary
and approved in accordance with subsection (i).
``(2) Consistency and notice.--Each significant amendment or
modification to a public housing agency plan submitted to the
Secretary under this section shall--
``(A) meet the requirements under subsection (c)(2)
(relating to consultation with resident advisory board
and consistency with comprehensive housing affordability
strategies); and
``(B) be subject to the notice and public hearing
requirements of subsection (f ).
``(h) Submission of Plans.--
``(1) Initial submission.--Each public housing agency shall
submit the initial plan required by this section, and any
amendment or modification to the initial plan, to the Secretary
at such time and in such form as the Secretary shall require.
``(2) Annual submission.--Not later than 75 days before the
start of the fiscal year of the public housing agency, after
submission of the initial plan required by this section in
accordance with subparagraph (A), each public housing agency
shall annually submit to the Secretary a plan update, including
any amendments or modifications to the public housing agency
plan.
``(i) Review and Determination of Compliance.--
``(1) Review.--Subject to paragraph (2), after submission of
the public housing agency plan or any amendment or modification
to the plan to the Secretary, to the extent that the Secretary
considers such action to be necessary to make determinations
under this paragraph, the Secretary shall review the public
housing agency plan (including any amendments or modifications
thereto) and determine whether the contents of the plan--
``(A) set forth the information required by this
section and this Act to be contained in a public housing
agency plan;
``(B) are consistent with information and data
available to the Secretary, including the approved
comprehensive housing affordability strategy under title
I of the Cranston-Gonzalez National Affordable Housing
Act for the jurisdiction in which the public housing
agency is located; and
``(C) are not prohibited by or inconsistent with any
provision of this title or other applicable law.
``(2) Elements exempted from review.--The Secretary may, by
regulation, provide that one or more elements of a public
housing agency plan shall be reviewed only if the element is
challenged, except that the Secretary shall review the
information submitted in each plan pursuant to paragraphs
(3)(B), (8), and (15) of subsection (d).
[[Page 112 STAT. 2537]]
``(3) Disapproval.--The Secretary may disapprove a public
housing agency plan (or any amendment or modification thereto)
only if Secretary determines that the contents of the plan (or
amendment or modification) do not comply with the requirements
under subparagraph (A) through (C) of paragraph (1).
``(4) Determination of compliance.--
``(A) In general.--Except as provided in subsection
( j)(2), not later than 75 days after the date on which
a public housing agency plan is submitted in accordance
with this section, the Secretary shall make the
determination under paragraph (1) and provide written
notice to the public housing agency if the plan has been
disapproved. If the Secretary disapproves the plan, the
notice shall state with specificity the reasons for the
disapproval.
``(B) Failure to provide notice of disapproval.--In
the case of a plan disapproved, if the Secretary does
not provide notice of disapproval under subparagraph (A)
before the expiration of the period described in
subparagraph (A), the Secretary shall be considered, for
purposes of this Act, to have made a determination that
the plan complies with the requirements under this
section and the agency shall be considered to have been
notified of compliance upon the expiration of such
period. The preceding sentence shall not preclude
judicial review regarding such compliance pursuant to
chapter 7 of title 5, United States Code, or an action
regarding such compliance under section 1979 of the
Revised Statutes of the United States (42 U.S.C. 1983).
``(5) Public availability.--A public housing agency shall
make the approved plan of the agency available to the general
public.
``( j) Troubled and At-Risk PHAs.--
``(1) In general.--The Secretary may require, for each
public housing agency that is at risk of being designated as
troubled under section 6( j)(2) or is designated as troubled
under section 6( j)(2), that the public housing agency plan for
such agency include such additional information as the Secretary
determines to be appropriate, in accordance with such standards
as the Secretary may establish or in accordance with such
determinations as the Secretary may make on an agency-by-agency
basis.
``(2) Troubled agencies.--The Secretary shall provide
explicit written approval or disapproval, in a timely manner,
for a public housing agency plan submitted by any public housing
agency designated by the Secretary as a troubled public housing
agency under section 6( j)(2).
``(k) Streamlined plan.--In carrying out this section, the Secretary
may establish a streamlined public housing agency plan for--
``(A) public housing agencies that are determined by
the Secretary to be high performing public housing
agencies;
``(B) public housing agencies with less than 250
public housing units that have not been designated as
troubled under section 6( j)(2); and
[[Page 112 STAT. 2538]]
``(C) public housing agencies that only administer
tenant-based assistance and that do not own or operate
public housing.
``(l) Compliance With Plan.--
``(1) In general.--In providing assistance under this title,
a public housing agency shall comply with the rules, standards,
and policies established in the public housing agency plan of
the public housing agency approved under this section.
``(2) Investigation and enforcement.--In carrying out this
title, the Secretary shall--
``(A) provide an appropriate response to any
complaint concerning noncompliance by a public housing
agency with the applicable public housing agency plan;
and
``(B) if the Secretary determines, based on a
finding of the Secretary or other information available
to the Secretary, that a public housing agency is not
complying with the applicable public housing agency
plan, take such actions as the Secretary determines to
be appropriate to ensure such compliance.''.
(b) Implementation.--
(1) Interim <<NOTE: Deadline. 42 USC 1437c-1 note.>> rule.--
Not later than 120 days after the date of the enactment of this
Act, the Secretary shall issue an interim rule to require the
submission of an interim public housing agency plan by each
public housing agency, as required by section 5A of the United
States Housing Act of 1937 (as added by subsection (a) of this
section). The interim rule shall provide for a public comment
period of not less than 60 days.
(2) Final <<NOTE: Deadline.>> regulations.--Not later than 1
year after the date of the enactment of this Act, the Secretary
shall issue final regulations implementing section 5A of the
United States Housing Act of 1937 (as added by subsection (a) of
this section).
(3) Factors for consideration.--Before the publication of
the final regulations under paragraph (2), in addition to public
comments invited in connection with the publication of the
interim rule, the Secretary shall--
(A) seek recommendations on the implementation of
section 5A of the United States Housing Act of 1937 (as
added by this subsection (a) of this section) from
organizations representing--
(i) State or local public housing agencies;
(ii) residents, including resident management
corporations; and
(iii) other appropriate parties; and
(B) convene not less than 2 public forums at which
the persons or organizations making recommendations
under subparagraph (A) may express views concerning the
proposed disposition of the recommendations.
The <<NOTE: Publication.>> Secretary shall publish in the final
rule a summary of the recommendations made and public comments
received and the Department of Housing and Urban Development's
response to such recommendations and comments.
(c) Audit <<NOTE: 42 USC 1437c-1 note.>> and Review; Report.--
(1) Audit and review.--Not later than 1 year after the
effective date of final regulations issued under subsection
(b)(2), in order to determine the degree of compliance, by
public housing agencies, with public housing agency plans
approved under section 5A of the United States Housing Act of
1937 (as added
[[Page 112 STAT. 2539]]
by subsection (a) of this section), the Comptroller General of
the United States shall conduct--
(A) a review of a representative sample of the
public housing agency plans approved under such section
5A before such date; and
(B) an audit and review of the public housing
agencies submitting such plans.
(2) Report.--Not later than 2 years after the date on which
public housing agency plans are initially required to be
submitted under section 5A of the United States Housing Act of
1937 (as added by subsection (a) of this section) the
Comptroller General of the United States shall submit to the
Congress a report, which shall include--
(A) a description of the results of each audit and
review under paragraph (1); and
(B) any recommendations for increasing compliance by
public housing agencies with their public housing agency
plans approved under section 5A of the United States
Housing Act of 1937 (as added by subsection (a) of this
section).
(d) Contract Provisions.--Section 6(a) of the United States Housing
Act of 1937 (42 U.S.C. 1437d(a)) is amended--
(1) in the first sentence, by inserting ``, in a manner
consistent with the public housing agency plan'' before the
period; and
(2) by striking the second sentence.
(e) Applicability.--This <<NOTE: 42 USC 1437c-1.>> section shall
take effect, and the amendments made by this section are made on, and
shall apply beginning upon, the date of the enactment of this Act.
SEC. 512. COMMUNITY SERVICE AND FAMILY SELF-SUFFICIENCY REQUIREMENTS.
(a) In General.--Section 12 of the United States Housing Act of 1937
(42 U.S.C. 1437j) is amended--
(1) in the section heading, by inserting ``and community
service requirement'' after ``labor standards''; and
(2) by adding at the end the following new subsections:
``(c) Community Service Requirement.--
``(1) In General.--Except as provided in paragraph (2) and
notwithstanding any other provision of law, each adult resident
of a public housing project shall--
``(A) contribute 8 hours per month of community
service (not including political activities) within the
community in which that adult resides; or
``(B) participate in an economic self-sufficiency
program (as that term is defined in subsection (g)) for
8 hours per month.
``(2) Exemptions.--The Secretary shall provide an exemption
from the applicability of paragraph (1) for any individual who--
``(A) is 62 years of age or older;
``(B) is a blind or disabled individual, as defined
under section 216(i)(1) or 1614 of the Social Security
Act (42 U.S.C. 416(i)(1); 1382c), and who is unable to
comply with this section, or is a primary caretaker of
such individual;
``(C) is engaged in a work activity (as such term is
defined in section 407(d) of the Social Security Act (42
U.S.C. 607(d)), as in effect on and after July 1,
1997));
[[Page 112 STAT. 2540]]
``(D) meets the requirements for being exempted from
having to engage in a work activity under the State
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) or under any other
welfare program of the State in which the public housing
agency is located, including a State-administered
welfare-to-work program; or
``(E) is in a family receiving assistance under a
State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) or under any
other welfare program of the State in which the public
housing agency is located, including a State-
administered welfare-to-work program, and has not been
found by the State or other administering entity to be
in noncompliance with such program.
``(3) Annual determinations.--
``(A) Requirement.--For each public housing resident
subject to the requirement under paragraph (1), the
public housing agency shall, 30 days before the
expiration of each lease term of the resident under
section 6(l)(1), review and determine the compliance of
the resident with the requirement under paragraph (1) of
this subsection.
``(B) Due process.--Such determinations shall be
made in accordance with the principles of due process
and on a nondiscriminatory basis.
``(C) Noncompliance.-- If an agency determines that
a resident subject to the requirement under paragraph
(1) has not complied with the requirement, the agency--
``(i) shall notify the resident--
``(I) of such noncompliance;
``(II) that the determination of
noncompliance is subject to the
administrative grievance procedure under
subsection (k); and
``(III) that, unless the resident
enters into an agreement under clause
(ii) of this subparagraph, the
resident's lease will not be renewed;
and
``(ii) may not renew or extend the resident's
lease upon expiration of the lease term and shall
take such action as is necessary to terminate the
tenancy of the household, unless the agency enters
into an agreement, before the expiration of the
lease term, with the resident providing for the
resident to cure any noncompliance with the
requirement under paragraph (1), by participating
in an economic self-sufficiency program for or
contributing to community service as many
additional hours as the resident needs to comply
in the aggregate with such requirement over the
12-month term of the lease.
``(4) Ineligibility for occupancy for noncompliance.--A
public housing agency may not renew or extend any lease, or
provide any new lease, for a dwelling unit in public housing for
any household that includes an adult member who was subject to
the requirement under paragraph (1) and failed to comply with
the requirement.
``(5) Inclusion in plan.--Each public housing agency shall
include in its public housing agency plan a detailed description
[[Page 112 STAT. 2541]]
of the manner in which the agency intends to implement and
administer this subsection.
``(6) Geographic location.--The requirement under paragraph
(1) may include community service or participation in an
economic self-sufficiency program performed at a location not
owned by the public housing agency.
``(7) Prohibition against replacement of employees.--In
carrying out this subsection, a public housing agency may not--
``(A) substitute community service or participation
in an economic self-sufficiency program, as described in
paragraph (1), for work performed by a public housing
employee; or
``(B) supplant a job at any location at which
community work requirements are fulfilled.
``(8) Third-party coordinating.--A public housing agency may
administer the community service requirement under this
subsection directly, through a resident organization, or through
a contractor having experience in administering volunteer-based
community service programs within the service area of the public
housing agency. The Secretary may establish qualifications for
such organizations and contractors.
``(d) Treatment of Income Changes Resulting From Welfare Program
Requirements.--
``(1) Covered family.--For purposes of this subsection, the
term `covered family' means a family that (A) receives benefits
for welfare or public assistance from a State or other public
agency under a program for which the Federal, State, or local
law relating to the program requires, as a condition of
eligibility for assistance under the program, participation of a
member of the family in an economic self-sufficiency program,
and (B) resides in a public housing dwelling unit or is provided
tenant-based assistance under section 8.
``(2) Decreases in income for failure to comply.--
``(A) In general.--Notwithstanding the provisions of
section 3(a) (relating to family rental contributions)
or paragraph (4) or (5) of section 3(b) (relating to
definition of income and adjusted income), if the
welfare or public assistance benefits of a covered
family are reduced under a Federal, State, or local law
regarding such an assistance program because of any
failure of any member of the family to comply with the
conditions under the assistance program requiring
participation in an economic self-sufficiency program or
imposing a work activities requirement, the amount
required to be paid by the family as a monthly
contribution toward rent may not be decreased, during
the period of the reduction, as a result of any decrease
in the income of the family (to the extent that the
decrease in income is a result of the benefits
reduction).
``(B) No reduction based on time limit for
assistance.--For purposes of this paragraph, a reduction
in benefits as a result of the expiration of a lifetime
time limit for a family receiving welfare or public
assistance benefits shall not be considered to be a
failure to comply with the conditions under the
assistance program requiring participation in an
economic self-sufficiency program or imposing a work
activities requirement. This paragraph
[[Page 112 STAT. 2542]]
shall apply beginning upon the date of the enactment of
the Quality Housing and Work Responsibility Act of 1998.
``(3) Effect of fraud.--Notwithstanding the provisions of
section 3(a) (relating to family rental contributions) or
paragraph (4) or (5) of section 3(b) (relating to definition of
income and adjusted income), if the welfare or public assistance
benefits of a covered family are reduced because of an act of
fraud by a member of the family under the law or program, the
amount required to be paid by the covered family as a monthly
contribution toward rent may not be decreased, during the period
of the reduction, as a result of any decrease in the income of
the family (to the extent that the decrease in income is a
result of the benefits reduction). This paragraph shall apply
beginning upon the date of the enactment of the Quality Housing
and Work Responsibility Act of 1998.
``(4) Notice.--Paragraphs (2) and (3) shall not apply to any
covered family before the public housing agency providing
assistance under this Act on behalf of the family obtains
written notification from the relevant welfare or public
assistance agency specifying that the family's benefits have
been reduced because of noncompliance with economic self-
sufficiency program or work activities requirements or fraud,
and the level of such reduction.
``(5) Occupancy rights.--This subsection may not be
construed to authorize any public housing agency to establish
any time limit on tenancy in a public housing dwelling unit or
on receipt of tenant-based assistance under section 8.
``(6) Review.--Any covered family residing in public housing
that is affected by the operation of this subsection shall have
the right to review the determination under this subsection
through the administrative grievance procedure established
pursuant to section 6(k) for the public housing agency.
``(7) Cooperation agreements for economic self-sufficiency
activities.--
``(A) Requirement.--A public housing agency
providing public housing dwelling units or tenant-based
assistance under section 8 for covered families shall
make its best efforts to enter into such cooperation
agreements, with State, local, and other agencies
providing assistance to covered families under welfare
or public assistance programs, as may be necessary, to
provide for such agencies to transfer information to
facilitate administration of subsection (c) and
paragraphs (2), (3), and (4) of this subsection and
other information regarding rents, income, and
assistance that may assist a public housing agency or
welfare or public assistance agency in carrying out its
functions.
``(B) Contents.--A public housing agency shall seek
to include in a cooperation agreement under this
paragraph requirements and provisions designed to target
assistance under welfare and public assistance programs
to families residing in public housing projects and
families receiving tenant-based assistance under section
8, which may include providing for economic self-
sufficiency services within such housing, providing for
services designed to meet the unique employment-related
needs of residents of such housing and recipients of
such assistance, providing for placement of
[[Page 112 STAT. 2543]]
workfare positions on-site in such housing, and such
other elements as may be appropriate.
``(C) Confidentiality.--This paragraph may not be
construed to authorize any release of information
prohibited by, or in contravention of, any other
provision of Federal, State, or local law.
``(e) Lease Provisions.--A public housing agency shall incorporate
into leases under section 6(l) and into agreements for the provision of
tenant-based assistance under section 8, provisions incorporating the
conditions under subsection (d).
``(f ) Treatment of Income.--Notwithstanding any other provision of
this section, in determining the income of a family who resides in
public housing or receives tenant-based assistance under section 8, a
public housing agency shall consider any decrease in the income of a
family that results from the reduction of any welfare or public
assistance benefits received by the family under any Federal, State, or
local law regarding a program for such assistance if the family (or a
member thereof, as applicable) has complied with the conditions for
receiving such assistance and is unable to obtain employment
notwithstanding such compliance.
``(g) Definition.--For purposes of this section, the term `economic
self-sufficiency program' means any program designed to encourage,
assist, train, or facilitate the economic independence of participants
and their families or to provide work for participants, including
programs for job training, employment counseling, work placement, basic
skills training, education, workfare, financial or household management,
apprenticeship, or other activities as the Secretary may provide.''.
(b) 1-Year Leases.--Section 6(l) of the United States Housing Act of
1937 (42 U.S.C. 1437d(l)) is amended--
(1) by redesignating paragraphs (1) through (6) as
paragraphs (2) through (7), respectively;
(2) by redesignating paragraph (7) as paragraph (9); and
(3) by inserting before paragraph (2) the following new
paragraph:
``(1) have a term of 12 months and shall be automatically
renewed for all purposes except for noncompliance with the
requirements under section 12(c) (relating to community service
requirements); except that nothing in this title shall prevent a
resident from seeking timely redress in court for failure to
renew based on such noncompliance;''.
SEC. 513. INCOME TARGETING.
(a) In General.--Section 16 of the United States Housing Act of 1937
(42 U.S.C. 1437n) is amended by striking the section designation and all
that follows through the end of subsection (d) and inserting the
following:
``Sec. 16. (a) Income Eligibility for Public Housing.--
``(1) Income mix within projects.--A public housing agency
may establish and utilize income-mix criteria for the selection
of residents for dwelling units in public housing projects,
subject to the requirements of this section.
``(2) PHA income mix.--
``(A) Targeting.--Except as provided in paragraph
(4), of the public housing dwelling units of a public
housing agency made available for occupancy in any
fiscal year
[[Page 112 STAT. 2544]]
by eligible families, not less than 40 percent shall be
occupied by families whose incomes at the time of
commencement of occupancy do not exceed 30 percent of
the area median income, as determined by the Secretary
with adjustments for smaller and larger families.
``(3) Prohibition of concentration of low-income families.--
``(A) Prohibition.--A public housing agency may not,
in complying with the requirements under paragraph (2),
concentrate very low-income families (or other families
with relatively low incomes) in public housing dwelling
units in certain public housing projects or certain
buildings within projects. The Secretary shall review
the income and occupancy characteristics of the public
housing projects and the buildings of such projects of
such agencies to ensure compliance with the provisions
of this paragraph and paragraph (2).
``(B) Deconcentration.--
``(i) In general.--A public housing agency
shall submit with its annual public housing agency
plan under section 5A an admissions policy
designed to provide for deconcentration of poverty
and income-mixing by bringing higher income
tenants into lower income projects and lower
income tenants into higher income projects. This
clause may not be construed to impose or require
any specific income or racial quotas for any
project or projects.
``(ii) Incentives.--In implementing the policy
under clause (i), a public housing agency may
offer incentives for eligible families having
higher incomes to occupy dwelling unit in projects
predominantly occupied by eligible families having
lower incomes, and provide for occupancy of
eligible families having lower incomes in projects
predominantly occupied by eligible families having
higher incomes.
``(iii) Family choice.--Incentives referred to
in clause (ii) may be made available by a public
housing agency only in a manner that allows for
the eligible family to have the sole discretion in
determining whether to accept the incentive and an
agency may not take any adverse action toward any
eligible family for choosing not to accept an
incentive and occupancy of a project described in
clause (i)(II), Provided, That the skipping of a
family on a waiting list to reach another family
to implement the policy under clause (i) shall not
be considered an adverse action. An agency
implementing an admissions policy under this
subparagraph shall implement the policy in a
manner that does not prevent or interfere with the
use of site-based waiting lists authorized under
section 6(s).
``(4) Fungibility with tenant-based assistance.--
``(A) Authority.--Except as provided under
subparagraph (D), the number of public housing dwelling
units that a public housing agency shall otherwise make
available in accordance with paragraph (2)(A) to comply
with the percentage requirement under such paragraph for
a
[[Page 112 STAT. 2545]]
fiscal year shall be reduced by the credit number for
the agency under subparagraph (B).
``(B) Credit for exceeding tenant-based assistance
targeting requirement.--Subject to subparagraph (C), the
credit number under this subparagraph for a public
housing agency for a fiscal year shall be the number by
which--
``(i) the aggregate number of qualified
families who, in such fiscal year, are initially
provided tenant-based assistance under section 8
by the agency; exceeds
``(ii) the number of qualified families that
is required for the agency to comply with the
percentage requirement under subsection (b)(1) for
such fiscal year.
``(C) Limitations on credit number.--The credit
number under subparagraph (B) for a public housing
agency for a fiscal year may not in any case exceed the
lesser of--
``(i) the number of dwelling units that is
equivalent to 10 percent of the aggregate number
of families initially provided tenant-based
assistance under section 8 by the agency in such
fiscal year; or
``(ii) the number of public housing dwelling
units of the agency that--
``(I) are in projects that are
located in census tracts having a
poverty rate of 30 percent or more; and
``(II) are made available for
occupancy during such fiscal year and
are actually filled only by families
whose incomes at the time of
commencement of such occupancy exceed 30
percent of the area median income, as
determined by the Secretary with
adjustments for smaller and larger
families.
``(D) Fungibility floor.--Notwithstanding any
authority under subparagraph (A), of the public housing
dwelling units of a public housing agency made available
for occupancy in any fiscal year by eligible families,
not less than 30 percent shall be occupied by families
whose incomes at the time of commencement of occupancy
do not exceed 30 percent of the area median income, as
determined by the Secretary with adjustments for smaller
and larger families.
``(E) Qualified family.--For purposes of this
paragraph, the term `qualified family' means a family
having an income described in subsection (b)(1).
``(b) Income Eligibility for Tenant-Based Section 8 Assistance.--
``(1) In general.--Of the families initially provided
tenant-based assistance under section 8 by a public housing
agency in any fiscal year, not less than 75 percent shall be
families whose incomes do not exceed 30 percent of the area
median income, as determined by the Secretary with adjustments
for smaller and larger families; except that the Secretary may
establish income ceilings higher or lower than 30 percent of the
area median income on the basis of the Secretary's findings
[[Page 112 STAT. 2546]]
that such variations are necessary because of unusually high or
low family incomes.
``(2) Jurisdictions served by multiple pha's.--In the case
of any 2 or more public housing agencies that administer tenant-
based assistance under section 8 with respect solely to
identical geographical areas, such agencies shall be treated as
a single public housing agency for purposes of paragraph (1).
``(c) Income Eligibility for Project-Based Section 8 Assistance.--
``(1) Pre-1981 act projects.--Not more than 25 percent of
the dwelling units that were available for occupancy under
section 8 housing assistance payments contracts under this Act
before the effective date of the Housing and Community
Development Amendments of 1981, and which will be leased on or
after such effective date shall be available for leasing by low-
income families other than very low-income families.
``(2) Post-1981 act projects.--Not more than 15 percent of
the dwelling units which become available for occupancy under
section 8 housing assistance payments contracts under this Act
on or after the effective date of the Housing and Community
Development Amendments of 1981 shall be available for leasing by
low-income families other than very low-income families.
``(3) Targeting.--For each project assisted under a contract
for project-based assistance, of the dwelling units that become
available for occupancy in any fiscal year that are assisted
under the contract, not less than 40 percent
``(4) Prohibition of skipping.--In developing admission
procedures implementing paragraphs (1), (2), and (3), the
Secretary shall prohibit project owners from selecting families
for residence in an order different from the order on the
waiting list for the purpose of selecting relatively higher
income families for residence. Nothing in this paragraph or this
subsection may be construed to prevent an owner of housing
assisted under a contract for project-based assistance from
establishing a preference for occupancy in such housing for
families containing a member who is employed.
``(5) Exception.--The limitations established in paragraphs
(1), (2), and (3) shall not apply to dwelling units made
available under project-based contracts under section 8 for the
purpose of preventing displacement, or ameliorating the effects
of displacement.
``(6) Definition.--For purposes of this subsection, the term
`project-based assistance' means assistance under any of the
following programs:
``(A) The new construction or substantial
rehabilitation program under section 8(b)(2) (as in
effect before October 1, 1983).
``(B) The property disposition program under section
8(b) (as in effect before the effective date under
section 503(a) of the Quality Housing and Work
Responsibility Act of 1998).
``(C) The loan management set-aside program under
subsections (b) and (v) of section 8.
``(D) The project-based certificate program under
section 8(d)(2).
[[Page 112 STAT. 2547]]
``(E) The moderate rehabilitation program under
section 8(e)(2) (as in effect before October 1, 1991).
``(F) The low-income housing preservation program
under Low-Income Housing Preservation and Resident
Homeownership Act of 1990 or the provisions of the
Emergency Low Income Housing Preservation Act of 1987
(as in effect before November 28, 1990).
``(G) Section 8 (as in effect before the effective
date under section 503(a) of the Quality Housing and
Work Responsibility Act of 1998), following conversion
from assistance under section 101 of the Housing and
Urban Development Act of 1965 or section 236(f )(2) of
the National Housing Act.
``(d) Establishment of Different Standards.--Notwithstanding
subsection (a)(2) or (b)(1), if approved by the Secretary, a public
housing agency may for good cause establish and implement, in accordance
with the public housing agency plan, an admission standard other than
the standard under such subsection.''.
(b) Effective <<NOTE: 42 USC 1437n note.>> Date.--This section shall
take effect on, and the amendments under this section are made on, and
shall apply beginning upon, the date of the enactment of this Act.
SEC. 514. REPEAL OF FEDERAL PREFERENCES.
(a) Public Housing.--
(1) In general.--Subparagraph (A) of section 6(c)(4) of the
United States Housing Act of 1937 (42 U.S.C. 1437d)(c)(4)) is
amended to read as follows:
``(A) making dwelling units in public housing
available for occupancy, which shall provide that the
public housing agency may establish a system for making
dwelling units available that provides preference for
such occupancy to families having certain
characteristics; each system of preferences established
pursuant to this subparagraph shall be based upon local
housing needs and priorities, as determined by the
public housing agency using generally accepted data
sources, including any information obtained pursuant to
an opportunity for public comment as provided under
section 5A(f ) and under the requirements applicable to
the comprehensive housing affordability strategy for the
relevant jurisdiction;''.
(2) Conforming amendments.--
(A) Public housing assistance for foster care
children.--Section 6(o) of the United States Housing Act
of 1937 (42 U.S.C. 1437d(o)) is amended by striking
``Subject'' and all that follows through ``, in'' and
inserting ``In''.
(B) Youthbuild program.--Section 455(a)(2)(D)(iii)
of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12899d(a)(2)(D)(iii) is amended striking
``section 6(c)(4)(A)'' and inserting ``any system of
preferences established under section 6(c)(1)''.
(b) Section 8 Existing and Moderate Rehabilitation.--
(1) In general.--Subparagraph (A) of section 8(d)(1) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(A)) is
amended to read as follows:
``(A) the selection of tenants shall be the function of the
owner, subject to the annual contributions contract between the
Secretary and the agency, except that with respect to the
[[Page 112 STAT. 2548]]
certificate and moderate rehabilitation programs only, for the
purpose of selecting families to be assisted, the public housing
agency may establish local preferences, consistent with the
public housing agency plan submitted under section 5A by the
public housing agency;''.
(2) Conforming amendments.--
(A) Low-income housing preservation and resident
homeownership act of 1990.--The second sentence of
section 226(b)(6)(B) of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990 (12
U.S.C. 4116(b)(6)(B)) is amended by striking ``The
requirement for giving preferences to certain categories
of eligible families under sections 8(d)(1)(A) and
8(o)(3)'' and inserting ``Any system for preferences
established under section 8(d)(1)(A) or 8(o)(6)(A)''.
(B) Housing and community development act of 1992.--
Section 655 of the Housing and Community Development Act
of 1992 (42 U.S.C. 13615) is amended by striking ``shall
be given'' and all that follows through the period at
the end and inserting the following: ``shall be given to
disabled families according to any preferences
established under any system established under section
8(d)(1)(A) by the public housing agency.''.
(C) Management and disposition of multifamily
housing projects.--Section 203(g)(2) of the Housing and
Community Development Amendments of 1978 (12 U.S.C.
1701z-11(g)(2)) is amended by striking ``the preferences
for assistance under sections 6(c)(4)(A)(i),
8(d)(1)(A)(i), and 8(o)(3)(B)'' and inserting ``any
system of preferences established pursuant to section
6(c)(4)(A), 8(d)(1)(A), or 8(o)(6)(A)''.
(D) Other references.--Subparagraph (D) of section
402(d)(6) of The Balanced Budget Downpayment Act, I (42
U.S.C. 1437d note) is hereby repealed.
(c) Section 8 New Construction and Substantial Rehabilitation.--
(1) Permanent repeal.--Subsection (c) of section 545 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
1437f note) is hereby repealed.
(2) Prohibition.--Notwithstanding <<NOTE: 42 USC 1437f
note.>> any other provision of law (including subsection (f ) of
this section), section 402(d)(4)(B) of The Balanced Budget
Downpayment Act, I (42 U.S.C. 1437a note) shall apply to fiscal
year 1999 and thereafter.
(d) Rent Supplements.--Subsection (k) of section 1010 of the Housing
and Urban Development Act of 1965 (12 U.S.C. 1701s(k)) is hereby
repealed.
(e) Sense of Congress Regarding Preference for Assistance for
Victims of Domestic Violence.--It is the sense of Congress that, each
public housing agency involved in the selection of eligible families for
assistance under the United States Housing Act of 1937 (including
residency in public housing and tenant-based assistance under section 8
of such Act) should, consistent with the public housing agency plan of
the agency, consider preferences for individuals who are victims of
domestic violence.
(f ) Termination <<NOTE: 42 USC 1437f note.>> of Temporary
Provisions.--Section 402 of The Balanced Budget Downpayment Act, I, and
the amendments made by such section shall cease to be effective on the
date of
[[Page 112 STAT. 2549]]
the enactment of this Act. Notwithstanding the inclusion in this Act of
any provision extending the effectiveness of such section or such
amendments, such provision included in this Act shall not take effect.
(g) Applicability.--This <<NOTE: 12 USC 1701s note.>> section shall
take effect on, and the amendments made by this section are made on, and
shall apply beginning upon, the date of the enactment of this Act.
SEC. 515. JOINT VENTURES AND CONSORTIA OF PUBLIC HOUSING AGENCIES;
REPEAL OF ENERGY CONSERVATION PROVISIONS.
Section 13 of the United States Housing Act of 1937 (42 U.S.C.
1437k) is amended to read as follows:
``SEC. 13. CONSORTIA, JOINT VENTURES, AFFILIATES, AND SUBSIDIARIES OF
PUBLIC HOUSING AGENCIES.
``(a) Consortia.--
``(1) In general.--Any 2 or more public housing agencies may
participate in a consortium for the purpose of administering any
or all of the housing programs of those public housing agencies
in accordance with this section.
``(2) Effect.--With respect to any consortium described in
paragraph (1)--
``(A) any assistance made available under this title
to each of the public housing agencies participating in
the consortium shall be paid to the consortium; and
``(B) all planning and reporting requirements
imposed upon each public housing agency participating in
the consortium with respect to the programs operated by
the consortium shall be consolidated.
``(3) Restrictions.--
``(A) Agreement.--Each consortium described in
paragraph (1) shall be formed and operated in accordance
with a consortium agreement, and shall be subject to the
requirements of a joint public housing agency plan,
which shall be submitted by the consortium in accordance
with section 5A.
``(B) Minimum requirements.--The Secretary shall
specify minimum requirements relating to the formation
and operation of consortia and the minimum contents of
consortium agreements under this paragraph.
``(b) Joint Ventures.--
``(1) In general.--Notwithstanding any other provision of
law, a public housing agency, in accordance with the public
housing agency plan, may--
``(A) form and operate wholly owned or controlled
subsidiaries (which may be nonprofit corporations) and
other affiliates, any of which may be directed, managed,
or controlled by the same persons who constitute the
board of directors or similar governing body of the
public housing agency, or who serve as employees or
staff of the public housing agency; or
``(B) enter into joint ventures, partnerships, or
other business arrangements with, or contract with, any
person, organization, entity, or governmental unit--
``(i) with respect to the administration of
the programs of the public housing agency,
including any program that is subject to this
title; or
[[Page 112 STAT. 2550]]
``(ii) for the purpose of providing or
arranging for the provision of supportive or
social services.
``(2) Use of and treatment income.--Any income generated
under paragraph (1)--
``(A) shall be used for low-income housing or to
benefit the residents assisted by the public housing
agency; and
``(B) shall not result in any decrease in any amount
provided to the public housing agency under this title,
except as otherwise provided under the formulas
established under section 9(d)(2) and 9(e)(2).
``(3) Audits.--The Comptroller General of the United States,
the Secretary, or the Inspector General of the Department of
Housing and Urban Development may conduct an audit of any
activity undertaken under paragraph (1) at any time.''.
SEC. 516. PUBLIC HOUSING AGENCY MORTGAGES AND SECURITY INTERESTS.
Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) is amended by adding at the end the following:
``SEC. 30. <<NOTE: 42 USC 1437z-2.>> PUBLIC HOUSING MORTGAGES AND
SECURITY INTERESTS.
``(a) General Authorization.--The Secretary may, upon such terms and
conditions as the Secretary may prescribe, authorize a public housing
agency to mortgage or otherwise grant a security interest in any public
housing project or other property of the public housing agency.
``(b) Terms and Conditions.--In making any authorization under
subsection (a), the Secretary may consider--
``(1) the ability of the public housing agency to use the
proceeds of the mortgage or security interest for low-income
housing uses;
``(2) the ability of the public housing agency to make
payments on the mortgage or security interest; and
``(3) such other criteria as the Secretary may specify.
``(c) No Federal Liability.--No action taken under this section
shall result in any liability to the Federal Government.''.
SEC. 517. <<NOTE: 42 USC 1437 note.>> MENTAL HEALTH ACTION PLAN.
The Secretary of Housing and Urban Development, in consultation with
the Secretary of Health and Human Services, the Secretary of Labor, and
appropriate State and local officials and representatives, shall--
(1) develop an action plan and list of recommendations for
the improvement of means of providing severe mental illness
treatment to families and individuals receiving housing
assistance under the United States Housing Act of 1937,
including public housing residents, residents of multifamily
housing assisted with project-based assistance under section 8
of such Act, and recipients of tenant-based assistance under
such section; and
(2) develop and disseminate a list of current practices
among public housing agencies and owners of assisted housing
that serve to benefit persons in need of mental health care.''.
[[Page 112 STAT. 2551]]
Subtitle B--Public Housing
PART 1--CAPITAL AND OPERATING ASSISTANCE
SEC. 518. CONTRIBUTIONS FOR LOWER INCOME HOUSING PROJECTS.
(a) Repeals.--
(1) In general.--Section 5 of the United States Housing Act
of 1937 (42 U.S.C. 1437c) is amended--
(A) by striking subsections (h) through (k); and
(B) by redesignating subsection (l), as added by the
preceding provisions of this Act, as subsection (i).
(2) Conforming amendments.--The United States Housing Act of
1937 is amended--
(A) in section 21(d) (42 U.S.C. 1437s(d)), by
striking ``section 5(h) or''; and
(C) in section 307 (42 U.S.C. 1437aaa-6), by
striking ``section 5(h) and''.
(b) Local Notification.--Section 5(e)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437c(e)(2)) is amended by inserting
before the period at the end the following: ``; the Secretary shall
require that each such agreement shall provide that, notwithstanding any
order, judgment, or decree of any court (including any settlement
order), before making any amounts that are provided pursuant to any
contract for contributions under this title available for use for the
development of any housing or other property not previously used as
public housing, the public housing agency shall (A) notify the chief
executive officer (or other appropriate official) of the unit of general
local government in which the public housing for which such amounts are
to be so used is located (or to be located) of such use, and (B)
pursuant to the request of such unit of general local government,
provide such information as may reasonably be requested by such unit of
general local government regarding the public housing to be so assisted
(except to the extent otherwise prohibited by law)''.
SEC. 519. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
(a) In General.--Section 9 of the United States Housing Act of 1937
(42 U.S.C. 1437g) is amended to read as follows:
``SEC. 9. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
``(a) Merger Into Capital Fund.--Except as otherwise provided in the
Quality Housing and Work Responsibility Act of 1998, any assistance made
available for public housing under section 14 of this Act before October
1, 1999, shall be merged into the Capital Fund established under
subsection (d).
``(b) Merger Into Operating Fund.--Except as otherwise provided in
the Quality Housing and Work Responsibility Act of 1998, any assistance
made available for public housing under section 9 of this Act before
October 1, 1999, shall be merged into the Operating Fund established
under subsection (e).
``(c) Allocation Amount.--
``(1) In General.--For fiscal year 2000 and each fiscal year
thereafter, the Secretary shall allocate amounts in the Capital
Fund and Operating Funds for assistance for public housing
agencies eligible for such assistance. The Secretary shall
determine the amount of the allocation for each eligible
[[Page 112 STAT. 2552]]
agency, which shall be, for any fiscal year beginning after the
effective date of the formulas described in subsections (d)(2)
and (e)(2)--
``(A) for assistance from the Capital Fund, the
amount determined for the agency under the formula under
subsection (d)(2); and
``(B) for assistance from the Operating Fund, the
amount determined for the agency under the formula under
subsection (e)(2).
``(2) Funding.--There are authorized to be appropriated for
assistance for public housing agencies under this section the
following amounts:
``(A) Capital fund.--For allocations of assistance
from the Capital Fund, $3,000,000,000 for fiscal year
1999, and such sums as may be necessary for fiscal years
2000, 2001, 2002, and 2003.
``(B) Operating fund.--For allocations of assistance
from the Operating Fund, $2,900,000,000 for fiscal year
1999, and such sums as may be necessary for each of
fiscal years 2000, 2001, 2002, and 2003.
``(d) Capital Fund.--
``(1) In general.--The Secretary shall establish a Capital
Fund for the purpose of making assistance available to public
housing agencies to carry out capital and management activities,
including--
``(A) the development, financing, and modernization
of public housing projects, including the redesign,
reconstruction, and reconfiguration of public housing
sites and buildings (including accessibility
improvements) and the development of mixed-finance
projects;
``(B) vacancy reduction;
``(C) addressing deferred maintenance needs and the
replacement of obsolete utility systems and dwelling
equipment;
``(D) planned code compliance;
``(E) management improvements;
``(F) demolition and replacement;
``(G) resident relocation;
``(H) capital expenditures to facilitate programs to
improve the empowerment and economic self-sufficiency of
public housing residents and to improve resident
participation;
``(I) capital expenditures to improve the security
and safety of residents; and
``(J) homeownership activities, including programs
under section 32.
``(2) Formula.--The Secretary shall develop a formula for
determining the amount of assistance provided to public housing
agencies from the Capital Fund for a fiscal year, which shall
include a mechanism to reward performance. The formula may take
into account such factors as--
``(A) the number of public housing dwelling units
owned, assisted, or operated by the public housing
agency, the characteristics and locations of the
projects, and the characteristics of the families served
and to be served (including the incomes of the
families);
[[Page 112 STAT. 2553]]
``(B) the need of the public housing agency to carry
out rehabilitation and modernization activities,
replacement housing, and reconstruction, construction,
and demolition activities related to public housing
dwelling units owned, assisted, or operated by the
public housing agency, including backlog and projected
future needs of the agency;
``(C) the cost of constructing and rehabilitating
property in the area;
``(D) the need of the public housing agency to carry
out activities that provide a safe and secure
environment in public housing units owned, assisted, or
operated by the public housing agency;
``(E) any record by the public housing agency of
exemplary performance in the operation of public
housing, as indicated by the system of performance
indicators established pursuant to section 6( j); and
``(F) any other factors that the Secretary
determines to be appropriate.
``(3) Conditions on use for development and modernization.--
``(A) Development.--Except as otherwise provided in
this Act, any public housing developed using amounts
provided under this subsection, or under section 14 as
in effect before the effective date under section 503(a)
of the Quality Housing and Work Responsibility Act of
1998, shall be operated under the terms and conditions
applicable to public housing during the 40-year period
that begins on the date on which the project (or stage
of the project) becomes available for occupancy.
``(B) Modernization.--Except as otherwise provided
in this Act, any public housing or portion thereof that
is modernized using amounts provided under this
subsection or under section 14 (as in effect before the
effective date under section 503(a) of the Quality
Housing and Work Responsibility Act of 1998) shall be
maintained and operated under the terms and conditions
applicable to public housing during the 20-year period
that begins on the latest date on which modernization is
completed.
``(C) Applicability of latest expiration date.--
Public housing subject to this paragraph or to any other
provision of law mandating the operation of the housing
as public housing or under the terms and conditions
applicable to public housing for a specified length of
time, shall be maintained and operated as required until
the latest such expiration date.
``(e) Operating Fund.--
``(1) In general.--The Secretary shall establish an
Operating Fund for the purpose of making assistance available to
public housing agencies for the operation and management of
public housing, including--
``(A) procedures and systems to maintain and ensure
the efficient management and operation of public housing
units (including amounts sufficient to pay for the
reasonable costs of review by an independent auditor of
the documentation or other information maintained
pursuant to section 6( j)(6) by a public housing agency
or resident
[[Page 112 STAT. 2554]]
management corporation to substantiate the performance
of that agency or corporation);
``(B) activities to ensure a program of routine
preventative maintenance;
``(C) anticrime and antidrug activities, including
the costs of providing adequate security for public
housing residents, including above-baseline police
service agreements;
``(D) activities related to the provision of
services, including service coordinators for elderly
persons or persons with disabilities;
``(E) activities to provide for management and
participation in the management and policy making of
public housing by public housing residents;
``(F) the costs of insurance;
``(G) the energy costs associated with public
housing units, with an emphasis on energy conservation;
``(H) the costs of administering a public housing
work program under section 12, including the costs of
any related insurance needs;
``(I) the costs of repaying, together with rent
contributions, debt incurred to finance the
rehabilitation and development of public housing units,
which shall be subject to such reasonable requirements
as the Secretary may establish; and
``(J) the costs associated with the operation and
management of mixed finance projects, to the extent
appropriate.
``(2) Formula.--
``(A) In general.--The Secretary shall establish a
formula for determining the amount of assistance
provided to public housing agencies from the Operating
Fund for a fiscal year. The formula may take into
account--
``(i) standards for the costs of operating and
reasonable projections of income, taking into
account the characteristics and locations of the
public housing projects and characteristics of the
families served and to be served (including the
incomes of the families), or the costs of
providing comparable services as determined in
accordance with criteria or a formula representing
the operations of a prototype well-managed public
housing project;
``(ii) the number of public housing dwelling
units owned, assisted, or operated by the public
housing agency;
``(iii) the number of public housing dwelling
units owned, assisted, or operated by the public
housing agency that are chronically vacant and the
amount of assistance appropriate for those units;
``(iv) to the extent quantifiable, the extent
to which the public housing agency provides
programs and activities designed to promote the
economic self-sufficiency and management skills of
public housing residents;
``(v) the need of the public housing agency to
carry out anti-crime and anti-drug activities,
including providing adequate security for public
housing residents;
[[Page 112 STAT. 2555]]
``(vi) the amount of public housing rental
income foregone by the public housing agency as a
result of escrow savings accounts under section
23(d)(2) for families participating in a family
self-sufficiency program of the agency under such
section 23; and
``(vii) any other factors that the Secretary
determines to be appropriate.
``(B) Incentive to increase certain rental income.--
The formula shall provide an incentive to encourage
public housing agencies to facilitate increases in
earned income by families in occupancy. Any such
incentive shall provide that the agency shall benefit
from increases in such rental income and that such
amounts accruing to the agency pursuant to such benefit
may be used only for low-income housing or to benefit
the residents of the public housing agency.
``(C) Treatment of savings.--The treatment of
utility and waste management costs under the formula
shall provide that a public housing agency shall receive
the full financial benefit from any reduction in the
cost of utilities or waste management resulting from any
contract with a third party to undertake energy
conservation improvements in one or more of its public
housing projects.
``(3) Condition on use.--No portion of any public housing
project operated using amounts provided under this subsection,
or under this section as in effect before the effective date
under section 503(a) of the Quality Housing and Work
Responsibility Act of 1998, may be disposed of before the
expiration of the 10-year period beginning upon the conclusion
of the fiscal year for which such amounts were provided, except
as otherwise provided in this Act.
``(f ) Negotiated Rulemaking Procedure.--The formulas under
subsections (d)(2) and (e)(2) shall be developed according to procedures
for issuance of regulations under the negotiated rulemaking procedure
under subchapter III of chapter 5 of title 5, United States Code.
``(g) Limitations on Use of Funds.--
``(1) Flexibility for capital fund amounts.--Of any amounts
appropriated for fiscal year 2000 or any fiscal year thereafter
that are allocated for fiscal year 2000 or any fiscal year
thereafter from the Capital Fund for any public housing agency,
the agency may use not more than 20 percent for activities that
are eligible under subsection (e) for assistance with amounts
from the Operating Fund, but only if the public housing agency
plan for the agency provides for such use.
``(2) Full flexibility for small pha's.--Of any amounts
allocated for any fiscal year for any public housing agency that
owns or operates less than 250 public housing dwelling units, is
not designated pursuant to section 6( j)(2) as a troubled public
housing agency, and (in the determination of the Secretary) is
operating and maintaining its public housing in a safe, clean,
and healthy condition, the agency may use any such amounts for
any eligible activities under subsections (d)(1) and (e)(1),
regardless of the fund from which the amounts were
allocated <<NOTE: Effective date.>> and provided. This
subsection shall take effect on the date of the enactment of the
Quality Housing and Work Responsibility Act of 1998.
[[Page 112 STAT. 2556]]
``(3) Limitation on new construction.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), a public housing agency may
not use any of the amounts allocated for the agency from
the Capital Fund or Operating Fund for the purpose of
constructing any public housing unit, if such
construction would result in a net increase from the
number of public housing units owned, assisted, or
operated by the public housing agency on October 1,
1999, including any public housing units demolished as
part of any revitalization effort.
``(B) Exception regarding use of assistance.--A
public housing agency may use amounts allocated for the
agency from the Capital Fund or Operating Fund for the
construction and operation of housing units that are
available and affordable to low-income families in
excess of the limitations on new construction set forth
in subparagraph (A), but the formulas established under
subsections (d)(2) and (e)(2) shall not provide
additional funding for the specific purpose of allowing
construction and operation of housing in excess of those
limitations (except to the extent provided in
subparagraph (C)).
``(C) Exception regarding formulas.--Subject to
reasonable limitations set by the Secretary, the
formulas established under subsections (d)(2) and (e)(2)
may provide additional funding for the operation and
modernization costs (but not the initial development
costs) of housing in excess of amounts otherwise
permitted under this paragraph, and such amounts may be
so used, if--
``(i) such units are part of a mixed-finance
project or otherwise leverage significant
additional private or public investment; and
``(ii) the estimated cost of the useful life
of the project is less than the estimated cost of
providing tenant-based assistance under section
8(o) for the same period of time.
``(h) Technical <<NOTE: Contracts.>> Assistance.--To the extent
amounts are provided in advance in appropriations Acts, the Secretary
may make grants or enter into contracts or cooperative agreements in
accordance with this subsection for purposes of providing, either
directly or indirectly--
``(1) technical assistance to public housing agencies,
resident councils, resident organizations, and resident
management corporations, including assistance relating to
monitoring and inspections;
``(2) training for public housing agency employees and
residents;
``(3) data collection and analysis;
``(4) training, technical assistance, and education to
public housing agencies that are--
``(A) at risk of being designated as troubled under
section 6( j), to assist such agencies from being so
designated; and
``(B) designated as troubled under section 6( j), to
assist such agencies in achieving the removal of that
designation;
``(5) contract expertise;
[[Page 112 STAT. 2557]]
``(6) training and technical assistance to assist in the
oversight and management of public housing or tenant-based
assistance; and
``(7) clearinghouse services in furtherance of the goals and
activities of this subsection.
As used in this subsection, the terms `training' and `technical
assistance' shall include training or technical assistance and the cost
of necessary travel for participants in such training or technical
assistance, by or to officials and employees of the Department and of
public housing agencies, and to residents and to other eligible
grantees.
``(i) Eligibility of Units Acquired From Proceeds of Sales Under
Demolition or Disposition Plan.--If a public housing agency uses
proceeds from the sale of units under a homeownership program in
accordance with section 32 to acquire additional units to be sold to
low-income families, the additional units shall be counted as public
housing for purposes of determining the amount of the allocation to the
agency under this section until sale by the agency, but in no case
longer than 5 years.
``( j) Penalty for Slow Expenditure of Capital Funds.--
``(1) Obligation of amounts.--Except as provided in
paragraph (4) and subject to paragraph (2), a public housing
agency shall obligate any assistance received under this section
not later than 24 months after, as applicable--
``(A) the date on which the funds become available
to the agency for obligation in the case of
modernization; or
``(B) the date on which the agency accumulates
adequate funds to undertake modernization, substantial
rehabilitation, or new construction of units.
``(2) Extension of time period for obligation.--The
Secretary--
``(A) may, extend the time period under paragraph
(1) for a public housing agency, for such period as the
Secretary determines to be necessary, if the Secretary
determines that the failure of the agency to obligate
assistance in a timely manner is attributable to--
``(i) litigation;
``(ii) obtaining approvals of the Federal
Government or a State or local government;
``(iii) complying with environmental
assessment and abatement requirements;
``(iv) relocating residents;
``(v) an event beyond the control of the
public housing agency; or
``(vi) <<NOTE: Federal Register,
publication.>> any other reason established by the
Secretary by notice published in the Federal
Register;
``(B) shall disregard the requirements of paragraph
(1) with respect to any unobligated amounts made
available to a public housing agency, to the extent that
the total of such amounts does not exceed 10 percent of
the original amount made available to the public housing
agency; and
``(C) may, with the prior approval of the Secretary,
extend the time period under paragraph (1), for an
additional period not to exceed 12 months, based on--
``(i) the size of the public housing agency;
[[Page 112 STAT. 2558]]
``(ii) the complexity of capital program of
the public housing agency;
``(iii) any limitation on the ability of the
public housing agency to obligate the amounts
allocated for the agency from the Capital Fund in
a timely manner as a result of State or local law;
or
``(iv) such other factors as the Secretary
determines to be relevant.
``(3) Effect of failure to comply.--
``(A) Prohibition of new assistance.--A public
housing agency shall not be awarded assistance under
this section for any month during any fiscal year in
which the public housing agency has funds unobligated in
violation of paragraph (1) or (2).
``(B) Withholding of assistance.--During any fiscal
year described in subparagraph (A), the Secretary shall
withhold all assistance that would otherwise be provided
to the public housing agency. If the public housing
agency cures its failure to comply during the year, it
shall be provided with the share attributable to the
months remaining in the year.
``(C) Redistribution.--The total amount of any funds
not provided public housing agencies by operation of
this paragraph shall be allocated for agencies
determined under section 6( j) to be high-performing.
``(4) Exception to obligation requirements.--
``(A) In general.--Subject to subparagraph (B), if
the Secretary has consented, before the effective date
under section 503(a) of the Quality Housing and Work
Responsibility Act of 1998, to an obligation period for
any agency longer than provided under paragraph (1), a
public housing agency that obligates its funds before
the expiration of that period shall not be considered to
be in violation of paragraph (1).
``(B) Prior fiscal years.--Notwithstanding
subparagraph (A), any funds appropriated to a public
housing agency for fiscal year 1997 or prior fiscal
years shall be fully obligated by the public housing
agency not later than September 30, 1999.
``(5) Expenditure of amounts.--
``(A) In general.--A public housing agency shall
spend any assistance received under this section not
later than 4 years (plus the period of any extension
approved by the Secretary under paragraph (2)) after the
date on which funds become available to the agency for
obligation.
``(B) Enforcement.--The Secretary shall enforce the
requirement of subparagraph (A) through default remedies
up to and including withdrawal of the funding.
``(6) Right of recapture.--Any obligation entered into by a
public housing agency shall be subject to the right of the
Secretary to recapture the obligated amounts for violation by
the public housing agency of the requirements of this
subsection.
``(k) Emergency Reserve and Use of Amounts.--
``(1) Set-asides.--In each fiscal year after fiscal year
1999, the Secretary shall set aside, for use in accordance with
this subsection, not more than 2 percent of the total amount
made
[[Page 112 STAT. 2559]]
available to carry out this section for such fiscal year. In
addition to amounts set aside under the preceding sentence, in
each fiscal year the Secretary may set from the total amount
made available to carry out this section for such fiscal year
not more than $20,000,000 for the Operation Safe Home program
administered by the Office of the Inspector General of the
Department of Housing and Urban Development, for law enforcement
efforts to combat violent crime on or near the premises of
public and federally assisted housing.
``(2) Use of funds.--Amounts set aside under paragraph (1)
shall be available to the Secretary for use for assistance, as
provided in paragraph (3), in connection with--
``(A) emergencies and other disasters; and
``(C) housing needs resulting from any settlement of
litigation; and
``(3) Eligible uses.--In carrying out this subsection, the
Secretary may use amounts set aside under this subsection to
provide--
``(A) assistance for any eligible use under the
Operating Fund or the Capital Fund established by this
section; or
``(B) tenant-based assistance in accordance with
section 8.
``(4) Limitation.--With respect to any fiscal year, the
Secretary may carry over not more than a total of $25,000,000 in
unobligated amounts set aside under this subsection for use in
connection with the activities described in paragraph (2) during
the succeeding fiscal year.
``(5) Publication.--The <<NOTE: Federal Register,
publication.>> Secretary shall publish the use of any amounts
allocated under this subsection relating to emergencies (other
than disasters and housing needs resulting from any settlement
of litigation) in the Federal Register.
``(l) Treatment of Nonrental Income.--A public housing agency that
receives income from nonrental sources (as determined by the Secretary)
may retain and use such amounts without any decrease in the amounts
received under this section from the Capital or Operating Fund. Any such
nonrental amounts retained shall be used only for low-income housing or
to benefit the residents assisted by the public housing agency.
``(m) Provision of Only Capital or Operating Assistance.--
``(1) Authority.--In appropriate circumstances, as
determined by the Secretary, a public housing agency may commit
capital assistance only, or operating assistance only, for
public housing units, which assistance shall be subject to all
of the requirements applicable to public housing except as
otherwise provided in this subsection.
``(2) Exemptions.--In the case of any public housing unit
assisted pursuant to the authority under paragraph (1), the
Secretary may, by regulation, reduce the period under subsection
(d)(3) or (e)(3), as applicable, during which such units must be
operated under requirements applicable to public housing. In
cases in which there is commitment of operating assistance but
no commitment of capital assistance, the Secretary may make
section 8 requirements applicable, as appropriate, by
regulation.
``(n) Treatment of Public Housing.--
``(1) Certain state and city funded housing.--
[[Page 112 STAT. 2560]]
``(A) In general.--Notwithstanding any other
provision of this section--
``(i) for purposes of determining the
allocations from the Operating and Capital Funds
pursuant to the formulas under subsections (d)(2)
and (e)(2) and determining assistance pursuant to
section 519(e) of the Quality Housing and Work
Responsibility Act of 1998 and under section 9 or
14 of the United States Housing Act of 1937 (as in
effect before the date of the enactment of this
Act), for any period before the implementation of
such formulas, the Secretary shall deem any
covered locally developed public housing units as
public housing units developed under this title
and such units shall be eligible for such
assistance; and
``(ii) assistance provided under this section,
under such section 518(d)(3), or under such
section 9 or 14 to any public housing agency may
be used with respect to any covered locally
developed public housing units.
``(B) Covered units.--For purposes of this
paragraph, the term `covered locally developed public
housing units' means--
``(i) not more than 7,000 public housing units
developed pursuant to laws of the State of New
York and that received debt service and operating
subsidies pursuant to such laws; and
``(ii) not more than 5,000 dwelling units
developed pursuant to section 34 of chapter 121B
of the General Laws of the State of Massachusetts.
``(2) Reduction of asthma incidence.--Notwithstanding any
other provision of this section, the New York City Housing
Authority may, in its sole discretion, from amounts provided
from the Operating and Capital Funds, or from amounts provided
for public housing before amounts are made available from such
Funds, use not more than exceeding $500,000 per year for the
purpose of initiating, expanding or continuing a program for the
reduction of the incidence of asthma among residents. The
Secretary shall consult with the Administrator of the
Environmental Protection Agency and the Secretary of Health and
Human Services to identify and consider sources of funding for
the reduction of the incidence of asthma among recipients of
assistance under this title.
``(3) Services for elderly residents.--Notwithstanding any
other provision of this section, the New York City Housing
Authority may, in its sole discretion, from amounts provided
from the Operating and Capital Funds, or from amounts provided
for public housing before the amounts are made available from
such Funds, use not more than $600,000 per year for the purpose
of developing a comprehensive plan to address the need for
services for elderly residents. Such plan may be developed by a
partnership created by such Housing Authority and may include
the creation of a model project for assisted living at one or
more developments. The model project may provide for contracting
with private parties for the delivery of services.
``(4) Effective date.--This subsection shall apply to fiscal
year 1999 and each fiscal year thereafter.''.
[[Page 112 STAT. 2561]]
(b) Allocation of Assistance.--Section 6 of the United States
Housing Act of 1937 (42 U.S.C. 1437d) is amended by striking subsection
(p).
(c) Conforming Amendments.--The United States Housing Act of 1937
(42 U.S.C. 1437 et seq.) is amended--
(1) in section 303(b)(10) (42 U.S.C. 1437aaa-2(b)(10)), by
striking ``under section 9'' the first place it appears and
inserting ``from the Operating Fund''; and
(2) in section 305(e) (42 U.S.C. 1437aaa-4(e)), by striking
``Operating subsidies'' and inserting ``Amounts from an
allocation from the Operating Fund''.
(d) Transitional <<NOTE: 42 USC 1437a note.>> Ceiling Rents.--
Notwithstanding section 3(a)(1) of the United States Housing Act of 1937
(42 U.S.C. 1437a(1)), during the period ending upon the later of the
implementation of the formulas established pursuant to subsections
(d)(2) and (e)(2) of such Act (as amended by this section) and October
1, 1999, a public housing agency may take any of the following actions
with respect to public housing:
(1) New provisions.--An agency may--
(A) adopt and apply ceiling rents that reflect the
reasonable market value of the housing, but that are not
less than--
(i) for housing other than housing
predominantly for elderly or disabled families (or
both), 75 percent of the monthly cost to operate
the housing of the agency;
(ii) for housing predominantly for elderly or
disabled families (or both), 100 percent of the
monthly cost to operate the housing of the agency;
and
(iii) the monthly cost to make a deposit to a
replacement reserve (in the sole discretion of the
public housing agency); and
(B) allow families to pay ceiling rents referred to
in subparagraph (A), unless, with respect to any family,
the ceiling rent established under this paragraph would
exceed the amount payable as rent by that family under
paragraph (1).
(2) Ceiling rents from balanced budget act, I.--An agency
may utilize the authority under section 3(a)(2) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)), as in effect
immediately before the enactment of this Act, notwithstanding
any amendment to such section made by this Act.
(3) Transitional ceiling rents for balanced budget act, I.--
An agency may utilize the authority with respect to ceiling
rents under section 402(b)(2) of The Balanced Budget Downpayment
Act, I (42 U.S.C. 1437a note), notwithstanding any other
provision of law (including the expiration of the applicability
of such section or the repeal of such section).
(e) Transitional <<NOTE: 42 USC 1437g note.>> Provision of
Assistance.--
(1) In general.--Subject to paragraph (2), before the
implementation of formulas pursuant to sections 9(d)(2) and
9(e)(2) of the United States Housing Act of 1937 (as amended by
subsection (a) of this section), the Secretary shall provide
that each public housing agency shall receive funding under
sections 9 and 14 of the United States Housing Act of 1937, as
those sections existed immediately before the enactment
[[Page 112 STAT. 2562]]
of this Act (except that such sections shall be subject to any
amendments to such sections that may be contained in title II of
this Act).
(2) Qualifications.--Before the implementation of formulas
pursuant to sections 9(d)(2) and 9(e)(2) of the United States
Housing Act of 1937 (as amended by subsection (a) of this
section)--
(A) if a public housing agency establishes a rental
amount that is based on a ceiling rent established
pursuant to subsection (d)(1) of this section, the
Secretary shall take into account any reduction of the
per unit dwelling rental income of the public housing
agency resulting from the use of that rental amount in
calculating the contributions for the public housing
agency for the operation of the public housing under
section 9 of the United States Housing Act of 1937;
(B) if a public housing agency establishes a rental
amount that is based on an adjustment to income under
section 3(b)(5)(G) of the United States Housing Act of
1937 (as in effect immediately before the enactment of
this Act), the Secretary shall not take into account any
reduction of or any increase in the per unit dwelling
rental income of the public housing agency resulting
from the use of that rental amount in calculating the
contributions for the public housing agency for the
operation of the public housing under section 9 of the
United States Housing Act of 1937; and
(C) if a public housing agency establishes a rental
amount other than as provided under subparagraph (A) or
(B) that is less than the greatest of the amounts
determined under subparagraphs (A), (B), and (C) of
section 3(a)(1) of the United States Housing Act of
1937, the Secretary shall not take into account any
reduction of the per unit dwelling rental income of the
public housing agency resulting from the use of that
rental amount in calculating the contributions for the
public housing agency for the operation of the public
housing under section 9 of the United States Housing Act
of 1937.
(f ) Effective <<NOTE: 42 USC 1437g note.>> Date of Operating
Formula.--Notwithstanding the effective date under section 503(a), the
Secretary may extend the effective date of the formula under section
9(e)(2) of the United States Housing Act of 1937 (as amended by
subsection (a) of this section) for up to 6 months if such additional
time is necessary to implement such formula.
(g) Effective <<NOTE: 42 USC 1437g note.>> Date.--Subsections (d),
(e), and (f ) shall take effect upon the date of the enactment of this
Act.
SEC. 520. TOTAL DEVELOPMENT COSTS.
(a) Definition.--Section 3(c)(1) of the United States Housing Act of
1937 (42 U.S.C. 1437a(c)(1)) is amended by inserting before the period
at the end of the second sentence the following: `, but does not include
the costs associated with the demolition of or remediation of
environmental hazards associated with public housing units that will not
be replaced on the project site, or other extraordinary site costs as
determined by the Secretary''.
[[Page 112 STAT. 2563]]
(b) Determination.--Section 6(b) of the United States Housing Act of
1937 (42 U.S.C. 1437d(b)) is amended by adding at the end the following
new paragraphs:
``(3) In calculating the total development cost of a project under
paragraph (2), the Secretary shall consider only capital assistance
provided by the Secretary to a public housing agency that are authorized
for use in connection with the development of public housing, and shall
exclude all other amounts, including amounts provided under--
``(A) the HOME investment partnerships program authorized
under title II of the Cranston-Gonzalez National Affordable
Housing Act; or
``(B) the community development block grants program under
title I of the Housing and Community Development Act of 1974.
``(4) The Secretary may restrict the amount of capital funds that a
public housing agency may use to pay for housing construction costs. For
purposes of this paragraph, housing construction costs include the
actual hard costs for the construction of units, builders' overhead and
profit, utilities from the street, and finish landscaping.''.
SEC. 521. SANCTIONS FOR IMPROPER USE OF AMOUNTS.
Section 6( j) of the United States Housing Act of 1937 (42 U.S.C.
1437d( j)) is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) Sanctions for improper use of amounts.--
``(A) In general.--In addition to any other actions
authorized under this Act, if the Secretary finds that a public
housing agency receiving assistance amounts under section 9 for
public housing has failed to comply substantially with any
provision of this Act relating to the public housing program,
the Secretary may--
``(i) terminate assistance payments under this
section 9 to the agency;
``(ii) withhold from the agency amounts from the
total allocations for the agency pursuant to section 9;
``(iii) reduce the amount of future assistance
payments under section 9 to the agency by an amount
equal to the amount of such payments that were not
expended in accordance with this Act;
``(iv) limit the availability of assistance amounts
provided to the agency under section 9 to programs,
projects, or activities not affected by such failure to
comply;
``(v) withhold from the agency amounts allocated for
the agency under section 8; or
``(vi) order other corrective action with respect to
the agency.
``(B) Termination of compliance action.--If the Secretary
takes action under subparagraph (A) with respect to a public
housing agency, the Secretary shall--
``(i) in the case of action under subparagraph
(A)(i), resume payments of assistance amounts under
section 9 to the agency in the full amount of the total
allocations
[[Page 112 STAT. 2564]]
under section 9 for the agency at the time that the
Secretary first determines that the agency will comply
with the provisions of this Act relating to the public
housing program;
``(ii) in the case of action under clause (ii) or
(v) of subparagraph (A), make withheld amounts available
as the Secretary considers appropriate to ensure that
the agency complies with the provisions of this Act
relating to such program;
``(iii) in the case of action under subparagraph
(A)(iv), release such restrictions at the time that the
Secretary first determines that the agency will comply
with the provisions of this Act relating to such
program; or
``(iv) in the case of action under subparagraph
(vi), cease such action at the time that the Secretary
first determines that the agency will comply with the
provisions of this Act relating to such program.''.
SEC. 522. REPEAL OF MODERNIZATION FUND.
(a) In General.--Section 14 of the United States Housing Act of 1937
(42 U.S.C. 1437l) is hereby repealed.
(b) Conforming Amendments.--
(1) Funds for public housing development.--Section 5(c)(5)
of the United States Housing Act of 1937 (42 U.S.C. 1437c(c)(5))
is amended by striking ``for use under section 14 or'' and
inserting ``for use under section 9 or''.
(2) Allocation of assistance.--Section 213(d)(1)(B)(ii) of
the Housing and Community Development Act of 1974 (42 U.S.C.
1439(d)(1)(B)(i)) is amended by striking ``or 14''.
(3) Moving to work demonstration.--Section 204 of the
Departments of Veterans Affairs and Housing and Urban Devel-
opment, and Independent Agencies Appropriations Act, 1996 (as
contained in section 101(e) of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996; <<NOTE: 42 USC 1437f
note.>> 42 U.S.C. 1437f) is amended by adding at the end the
following new subsection:
``( j) Capital and Operating Fund Assistance.--With respect to any
public housing agency participating in the demonstration under this
section that receives assistance from the Capital or Operating Fund
under section 9 of the United States Housing Act of 1937 (as amended by
the Quality Housing and Work Responsibility Act of 1998), for purposes
of this section--
``(1) any reference to assistance under section 9 of the
United States Housing Act of 1937 shall be considered to refer
also to assistance provided from the Operating Fund under
section 9(e) of such Act (as so amended); and
``(2) any reference to assistance under section 14 of the
United States Housing Act of 1937 shall be considered to refer
also to assistance provided from the Capital Fund under section
9(d) of such Act (as so amended).''.
(4) Lead-based paint poisoning prevention act.--Section 302
of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C.
4822) is amended--
(A) in subsection (d)(1)--
(i) by striking ``assisted under section 14''
and inserting ``assisted with capital assistance
provided under section 9''; and
[[Page 112 STAT. 2565]]
(ii) by striking ``assistance under section
14'' and inserting ``capital assistance provided
under section 9''; and
(B) in subsection (f ), by striking ``for
comprehensive improvement assistance under section 14''
and inserting ``under the Capital Fund under section
9''.
(5) HOME program assistance.--Section 212(d)(5) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(d)(5)) is amended by striking ``section 14'' and inserting
``section 9(d)(1)''.
(c) Savings <<NOTE: 42 USC 1437l note.>> Provisions.--
(1) In <<NOTE: Applicability.>> general.--Section 14 of the
United States Housing Act of 1937 shall apply as provided in
section 519(e) of this Act.
(2) Expansion of use of modernization funding.--Before the
implementation of formulas pursuant to sections 9(d)(2) and
9(e)(2) of the United States Housing Act of 1937 (as amended by
section 519(a) of this Act) an agency may utilize any authority
provided under or pursuant to section 14(q) of such Act
(including the authority under section 201(a) of the Departments
of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (Public Law 104-
134; 110 Stat. 1321-277)), as such provisions (including such
section 201(a)) may be amended thereafter, including any
amendment made by title II of this Act), notwithstanding any
other provision of law (including the repeal made under this
section, the expiration of the applicability of such section
201, or any repeal of such section 201).
(3) Effective date.--This subsection shall take effect on
the date of the enactment of this Act.
PART 2--ADMISSIONS AND OCCUPANCY REQUIREMENTS
SEC. 523. FAMILY CHOICE OF RENTAL PAYMENT.
Paragraph (2) of section 3(a) of the United States Housing Act of
1937 (42 U.S.C. 1437a(a)(2)) is amended to read as follows:
``(2) Rental payments for public housing families.--
``(A) Authority for family to select.--
``(i) In general.--A family residing in a public
housing dwelling shall pay as monthly rent for the unit
the amount determined under clause (i) or (ii) of
subparagraph (B), subject to the requirement under
paragraph (3) (relating to minimum rents). Each public
housing agency shall provide for each family residing in
a public housing dwelling unit owned, assisted, or
operated by the agency to elect annually whether the
rent paid by such family shall be determined under
clause (i) or (ii) of subparagraph (B). A public housing
agency may not at any time fail to provide both such
rent options for any public housing dwelling unit owned,
assisted, or operated by the agency.
``(ii) Authority to retain flat and ceiling rents.--
Notwithstanding clause (i) or any other provision of
law, any public housing agency that is administering
flat rents or ceiling rents pursuant to any authority
referred to in section 519(d) of the Quality Housing and
Work Responsibility Act of 1998 before the effective day
of such Act
[[Page 112 STAT. 2566]]
may continue to charge rent in accordance with such rent
provisions after such effective date, except that the
agency shall provide for families residing in public
housing dwelling units owned or operated by the agency
to elect annually whether to pay rent under such
provisions or in accordance with one of the rent options
referred to in subparagraph (A).
``(B) Allowable rent structures.--
``(i) Flat rents.--Except as otherwise provided
under this clause, each public housing agency shall
establish, for each dwelling unit in public housing
owned or operated by the agency, a flat rental amount
for the dwelling unit, which shall--
``(I) be based on the rental value of the
unit, as determined by the public housing agency;
and
``(II) be designed in accordance with
subparagraph (D) so that the rent structures do
not create a disincentive for continued residency
in public housing by families who are attempting
to become economically self-sufficient through
employment or who have attained a level of self-
sufficiency through their own efforts.
The rental amount for a dwelling unit shall be
considered to comply with the requirements of this
clause if such amount does not exceed the actual monthly
costs to the public housing agency attributable to
providing and operating the dwelling unit. The preceding
sentence may not be construed to require establishment
of rental amounts equal to or based on operating costs
or to prevent public housing agencies from developing
flat rents required under this clause in any other
manner that may comply with this clause.
``(ii) Income-based rents.--
``(I) In general.--The monthly rental amount
determined under this clause for a family shall be
an amount, determined by the public housing
agency, that does not exceed the greatest of the
amounts (rounded to the nearest dollar) determined
under subparagraphs (A), (B), and (C) of paragraph
(1). This clause may not be construed to require a
public housing agency to charge a monthly rent in
the maximum amount permitted under this clause.
``(II) Discretion.--Subject to the limitation
on monthly rental amount under subclause (I), a
public housing agency may, in its discretion,
implement a rent structure under this clause
requiring that a portion of the rent be deposited
to an escrow or savings account, imposing ceiling
rents, or adopting income exclusions (such as
those set forth in section 3(b)(5)(B)), or may
establish another reasonable rent structure or
amount.
``(C) Switching rent determination methods because of
hardship circumstances.--Notwithstanding subparagraph (A), in
the case of a family that has elected to pay rent in the amount
determined under subparagraph (B)(i), a public housing agency
shall immediately provide for the family to pay rent in the
amount determined under subparagraph (B)(ii) during the period
for which such election was made upon a
[[Page 112 STAT. 2567]]
determination that the family is unable to pay the amount
determined under subparagraph (B)(i) because of financial
hardship, including--
``(i) situations in which the income of the family
has decreased because of changed circumstances, loss of
reduction of employment, death in the family, and
reduction in or loss of income or other assistance;
``(ii) an increase, because of changed
circumstances, in the family's expenses for medical
costs, child care, transportation, education, or similar
items; and
``(iii) such other situations as may be determined
by the agency.
``(D) Encouragement of self-sufficiency.--The rental policy
developed by each public housing agency shall encourage and
reward employment and economic self-sufficiency.
``(E) Income reviews.--Notwithstanding the second sentence
of paragraph (1), in the case of families that are paying rent
in the amount determined under subparagraph (B)(i), the agency
shall review the income of such family not less than once every
3 years.''.
SEC. 524. OCCUPANCY BY POLICE OFFICERS AND OVER-INCOME FAMILIES.
(a) In General.--Section 3(a) of the United States Housing Act of
1937 (42 U.S.C. 1437a(a), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following new
paragraphs:
``(4) Occupancy by police officers.--
``(A) In general.--Subject to subparagraph (B) and
notwithstanding any other provision of law, a public
housing agency may, in accordance with the public
housing agency plan for the agency, allow a police
officer who is not otherwise eligible for residence in
public housing to reside in a public housing dwelling
unit. The number and location of units occupied by
police officers under this paragraph and the terms and
conditions of their tenancies shall be determined by the
public housing agency.
``(B) Increased security.--A public housing agency
may take the actions authorized in subparagraph (A) only
for the purpose of increasing security for the residents
of a public housing project.
``(C) Definition.--In this paragraph, the term
`police officer' means any person determined by a public
housing agency to be, during the period of residence of
that person in public housing, employed on a full-time
basis as a duly licensed professional police officer by
a Federal, State, or local government or by any agency
thereof (including a public housing agency having an
accredited police force).
``(5) Occupancy by over-income families in certain public
housing.--
``(A) Authority.--Notwithstanding any other
provision of law, a public housing agency that owns or
operates less than 250 units may, on a month-to-month
basis, lease a dwelling unit in a public housing project
to an over-income family in accordance with this
paragraph, but only if there are no eligible families
applying for housing assistance from the public housing
agency for that month and
[[Page 112 STAT. 2568]]
the agency provides not less than 30-day public notice
of the availability of such assistance.
``(B) Terms and conditions.--The number and location
of dwelling units of a public housing agency occupied
under this paragraph by over-income families, and the
terms and conditions of those tenancies, shall be
determined by the public housing agency, except that--
``(i) notwithstanding paragraph (2), rent for
a unit shall be in an amount that is not less than
the costs to operate the unit;
``(ii) if an eligible family applies for
residence after an over-income family moves in to
the last available unit, the over-income family
shall vacate the unit in accordance with notice of
termination of tenancy provided by the agency,
which shall be provided not less than 30 days
before such termination; and
``(iii) if a unit is vacant and there is no
one on the waiting list, the public housing agency
may allow an over-income family to gain immediate
occupancy in the unit, while simultaneously
providing reasonable public notice and outreach
with regard to availability of the unit.
``(C) Definition.--For purposes of this paragraph,
the term `over-income family' means an individual or
family that is not a low-income family at the time of
initial occupancy.''.
(b) Applicability.--The <<NOTE: 42 USC 1437a note.>> amendment made
by this paragraph is made on, and shall apply beginning upon, the date
of the enactment of this Act.
SEC. 525. SITE-BASED WAITING LISTS.
Section 6 of the United States Housing Act of 1937 (42 U.S.C. 1437d)
is amended by adding at the end the following new subsection:
``(s) Site-Based Waiting Lists.--
``(1) Authority.--A public housing agency may establish
procedures for maintaining waiting lists for admissions to
public housing projects of the agency, which may include
(notwithstanding any other law, regulation, handbook, or notice
to the contrary) a system of site-based waiting lists under
which applicants may apply directly at or otherwise designate
the project or projects in which they seek to reside. All such
procedures shall comply with all provisions of title VI of the
Civil Rights Act of 1964, the Fair Housing Act, and other
applicable civil rights laws.
``(2) Notice.--Any system described in paragraph (1) shall
provide for the full disclosure by the public housing agency to
each applicant of any option available to the applicant in the
selection of the project in which to reside.''.
SEC. 526. PET OWNERSHIP.
Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new section:
``SEC. 31. <<NOTE: 42 USC 1437z-3.>> PET OWNERSHIP IN PUBLIC HOUSING.
``(a) Ownership Conditions.--A resident of a dwelling unit in public
housing (as such term is defined in subsection (c)) may
[[Page 112 STAT. 2569]]
own 1 or more common household pets or have 1 or more common household
pets present in the dwelling unit of such resident, subject to the
reasonable requirements of the public housing agency, if the resident
maintains each pet responsibly and in accordance with applicable State
and local public health, animal control, and animal anti-cruelty laws
and regulations and with the policies established in the public housing
agency plan for the agency.
``(b) Reasonable Requirements.--The reasonable requirements referred
to in subsection (a) may include--
``(1) requiring payment of a nominal fee, a pet deposit, or
both, by residents owning or having pets present, to cover the
reasonable operating costs to the project relating to the
presence of pets and to establish an escrow account for
additional costs not otherwise covered, respectively;
``(2) limitations on the number of animals in a unit, based
on unit size;
``(3) prohibitions on--
``(A) types of animals that are classified as
dangerous; and
``(B) individual animals, based on certain factors,
including the size and weight of the animal; and
``(4) restrictions or prohibitions based on size and type of
building or project, or other relevant conditions.
``(c) Pet Ownership In Public Housing Designated For Occupancy By
Elderly or Handicapped Families.--For purposes of this section, the term
`public housing' has the meaning given the term in section 3(b), except
that such term does not include any public housing that is federally
assisted rental housing for the elderly or handicapped, as such term is
defined in section 227(d) of the Housing and Urban-Rural Recovery Act of
1983 (12 U.S.C. 1701r-1(d)).
``(d) Regulations.--This <<NOTE: Effective date.>> section shall
take effect upon the date of the effectiveness of regulations issued by
the Secretary to carry out this section. Such regulations shall be
issued after notice and opportunity for public comment in accordance
with the procedure under section 553 of title 5, United States Code,
applicable to substantive rules (notwithstanding subsections (a)(2),
(b)(B), and (d)(3) of such section).''.
PART 3--MANAGEMENT, HOMEOWNERSHIP, AND DEMOLITION AND DISPOSITION
SEC. 529. CONTRACT PROVISIONS.
Section 6 of the United States Housing Act of 1937 (42 U.S.C. 1437d)
is amended--
(1) in subsection (c)(4)(E), by striking ``except in the
case of agencies not receiving operating assistance under
section 9'' and inserting ``for each agency that receives
assistance under this title''; and
(2) by striking subsection (e).
SEC. 530. HOUSING QUALITY REQUIREMENTS.
Section 6 of the United States Housing Act of 1937 (42 U.S.C. 1437d)
is amended by inserting after subsection (e) the following new
subsection:
``(f ) Housing Quality Requirements.--
[[Page 112 STAT. 2570]]
``(1) In general.--Each contract for contributions for a
public housing agency shall require that the agency maintain its
public housing in a condition that complies with standards which
meet or exceed the housing quality standards established under
paragraph (2).
``(2) Federal standards.--The Secretary shall establish
housing quality standards under this paragraph that ensure that
public housing dwelling units are safe and habitable. Such
standards shall include requirements relating to habitability,
including maintenance, health and sanitation factors, condition,
and construction of dwellings, and shall, to the greatest extent
practicable, be consistent with the standards established under
section 8(o)(8)(B)(i). The Secretary may determine whether the
laws, regulations, standards, or codes of any State or local
jurisdiction meet or exceed these standards, for purposes of
this subsection.
``(3) Annual inspections.--Each public housing agency that
owns or operates public housing shall make an annual inspection
of each public housing project to determine whether units in the
project are maintained in accordance with the requirements under
paragraph (1). The agency shall retain the results of such
inspections and, upon the request of the Secretary, the
Inspector General for the Department of Housing and Urban
Development, or any auditor conducting an audit under section
5(h), shall make such results available.''.
SEC. 531. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.
(a) In General.--Section 18 of the United States Housing Act of 1937
(42 U.S.C. 1437p) is amended to read as follows:
``SEC. 18. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.
``(a) Applications for Demolition and Disposition.--Except as
provided in subsection (b), upon receiving an application by a public
housing agency for authorization, with or without financial assistance
under this title, to demolish or dispose of a public housing project or
a portion of a public housing project (including any transfer to a
resident-supported nonprofit entity), the Secretary shall approve the
application, if the public housing agency certifies--
``(1) in the case of--
``(A) an application proposing demolition of a
public housing project or a portion of a public housing
project, that--
``(i) the project or portion of the public
housing project is obsolete as to physical
condition, location, or other factors, making it
unsuitable for housing purposes; and
``(ii) no reasonable program of modifications
is cost-effective to return the public housing
project or portion of the project to useful life;
and
``(B) an application proposing the demolition of
only a portion of a public housing project, that the
demolition will help to ensure the viability of the
remaining portion of the project;
``(2) in the case of an application proposing disposition by
sale or other transfer of a public housing project or other real
property subject to this title--
[[Page 112 STAT. 2571]]
``(A) the retention of the property is not in the
best interests of the residents or the public housing
agency because--
``(i) conditions in the area surrounding the
public housing project adversely affect the health
or safety of the residents or the feasible
operation of the project by the public housing
agency; or
``(ii) disposition allows the acquisition,
development, or rehabilitation of other properties
that will be more efficiently or effectively
operated as low-income housing;
``(B) the public housing agency has otherwise
determined the disposition to be appropriate for reasons
that are--
``(i) in the best interests of the residents
and the public housing agency;
``(ii) consistent with the goals of the public
housing agency and the public housing agency plan;
and
``(iii) otherwise consistent with this title;
or
``(C) for property other than dwelling units, the
property is excess to the needs of a public housing
project or the disposition is incidental to, or does not
interfere with, continued operation of a public housing
project;
``(3) that the public housing agency has specifically
authorized the demolition or disposition in the public housing
agency plan, and has certified that the actions contemplated in
the public housing agency plan comply with this section;
``(4) that the public housing agency--
``(A) <<NOTE: Notification.>> will notify each
family residing in a project subject to demolition or
disposition 90 days prior to the displacement date,
except in cases of imminent threat to health or safety,
consistent with any guidelines issued by the Secretary
governing such notifications, that--
``(i) the public housing project will be
demolished or disposed of;
``(ii) the demolition of the building in which
the family resides will not commence until each
resident of the building is relocated; and
``(iii) each family displaced by such action
will be offered comparable housing--
``(I) that meets housing quality
standards;
``(II) that is located in an area
that is generally not less desirable
than the location of the displaced
person's housing; and
``(III) which may include--
``(aa) tenant-based
assistance, except that the
requirement under this clause
regarding offering of comparable
housing shall be fulfilled by
use of tenant-based assistance
only upon the relocation of such
family into such housing;
``(bb) project-based
assistance; or
``(cc) occupancy in a unit
operated or assisted by the
public housing agency at a
rental rate paid by the family
that is comparable to the rental
rate applicable to the unit from
which the family is vacated;
[[Page 112 STAT. 2572]]
``(B) will provide for the payment of the actual and
reasonable relocation expenses of each resident to be
displaced;
``(C) will ensure that each displaced resident is
offered comparable housing in accordance with the notice
under subparagraph (A); and
``(D) will provide any necessary counseling for
residents who are displaced; and
``(E) will not commence demolition or complete
disposition until all residents residing in the building
are relocated;
``(5) that the net proceeds of any disposition will be
used--
``(A) unless waived by the Secretary, for the
retirement of outstanding obligations issued to finance
the original public housing project or modernization of
the project; and
``(B) to the extent that any proceeds remain after
the application of proceeds in accordance with
subparagraph (A), for--
``(i) the provision of low-income housing or
to benefit the residents of the public housing
agency; or
``(ii) leveraging amounts for securing
commercial enterprises, on-site in public housing
projects of the public housing agency, appropriate
to serve the needs of the residents; and
``(6) that the public housing agency has complied with
subsection (c).
``(b) Disapproval of Applications.--The Secretary shall disapprove
an application submitted under subsection (a) if the Secretary
determines that--
``(1) any certification made by the public housing agency
under that subsection is clearly inconsistent with information
and data available to the Secretary or information or data
requested by the Secretary; or
``(2) the application was not developed in consultation
with--
``(A) residents who will be affected by the proposed
demolition or disposition;
``(B) each resident advisory board and resident
council, if any, of the project (or portion thereof)
that will be affected by the proposed demolition or
disposition; and
``(C) appropriate government officials.
``(c) Resident Opportunity To Purchase in Case of Proposed
Disposition.--
``(1) In general.--In the case of a proposed disposition of
a public housing project or portion of a project, the public
housing agency shall, in appropriate circumstances, as
determined by the Secretary, initially offer the property to any
eligible resident organization, eligible resident management
corporation, or nonprofit organization acting on behalf of the
residents, if that entity has expressed an interest, in writing,
to the public housing agency in a timely manner, in purchasing
the property for continued use as low-income housing.
``(2) Timing.--
``(A) Expression of interest.--A resident
organization, resident management corporation, or other
resident-supported nonprofit entity referred to in
paragraph (1) may express interest in purchasing
property that is the
[[Page 112 STAT. 2573]]
subject of a disposition, as described in paragraph (1),
during the 30-day period beginning on the date of
notification of a proposed sale of the property.
``(B) Opportunity to arrange purchase.--If an entity
expresses written interest in purchasing a property, as
provided in subparagraph (A), no disposition of the
property shall occur during the 60-day period beginning
on the date of receipt of that written notice (other
than to the entity providing the notice), during which
time that entity shall be given the opportunity to
obtain a firm commitment for financing the purchase of
the property.
``(d) Replacement Units.--Notwithstanding any other provision of
law, replacement public housing units for public housing units
demolished in accordance with this section may be built on the original
public housing location or in the same neighborhood as the original
public housing location if the number of the replacement public housing
units is significantly fewer than the number of units demolished.
``(e) Consolidation of Occupancy Within or Among Buildings.--Nothing
in this section may be construed to prevent a public housing agency from
consolidating occupancy within or among buildings of a public housing
project, or among projects, or with other housing for the purpose of
improving living conditions of, or providing more efficient services to,
residents.
``(f ) De Minimis Exception to Demolition Requirements.--
Notwithstanding any other provision of this section, in any 5-year
period a public housing agency may demolish not more than the lesser of
5 dwelling units or 5 percent of the total dwelling units owned by the
public housing agency, but only if the space occupied by the demolished
unit is used for meeting the service or other needs of public housing
residents or the demolished unit was beyond repair.
``(g) Uniform Relocation and Real Property Acquisition Act.--The
Uniform Relocation and Real Property Acquisition Policies Act of 1970
shall not apply to activities under this section.
``(h) Relocation and Replacement.--Of the amounts appropriated for
tenant-based assistance under section 8 in any fiscal year, the
Secretary may use such sums as are necessary for relocation and
replacement housing for dwelling units that are demolished and disposed
of from the public housing inventory (in addition to other amounts that
may be available for such purposes).''.
(b) Homeownership <<NOTE: 42 USC 1437aaa-3 note.>> Replacement
Plan.--
(1) In general.--Notwithstanding subsections (b) and (c) of
section 1002 of the Emergency Supplemental Appropriations for
Additional Disaster Assistance, for Anti-terrorism Initiatives,
for Assistance in the Recovery from the Tragedy that Occurred At
Oklahoma City, and Rescissions Act, 1995 (Public Law 104-19; 109
Stat. 236), subsection (g) of section 304 of the United States
Housing Act of 1937 (42 U.S.C. 1437aaa-3(g)) is repealed.
(2) Effective date.--The amendment made by paragraph (1)
shall be effective with respect to any plan for the demolition,
disposition, or conversion to homeownership of public housing
that is approved by the Secretary after September 30, 1995.
(c) Treatment of Frost-Leland Provisions.--Notwithstanding any other
provision of law, on and after the date of the enactment of this Act,
the public housing projects described in section
[[Page 112 STAT. 2574]]
415 of the Department of Housing and Urban Development--Independent
Agencies Appropriations Act, 1988 (Public Law 100-202; 101 Stat. 1329-
213), as in effect on April 25, 1996, shall be eligible for demolition
under--
(1) section 9 of the United States Housing Act of 1937, as
amended by this Act; and
(2) section 14 of the United States Housing Act of 1937, as
that section existed on the day before the date of the enactment
of this Act.
(c) Applicability.--This <<NOTE: 42 USC 1437p note.>> section shall
take effect on, and the amendments made by this section are made on, and
shall apply beginning upon, the date of the enactment of this Act.
SEC. 532. RESIDENT COUNCILS AND RESIDENT MANAGEMENT CORPORATIONS.
(a) Resident Management.--Section 20 of the United States Housing
Act of 1937 (42 U.S.C. 1437r) is amended--
(1) in subsection (b)(4), by inserting after ``materials''
the following: ``, rent determination, community service
requirements,'';
(2) by striking subsection (c) and inserting the following
new subsection:
``(c) Assistance Amounts.--A contract under this section for
management of a public housing project by a resident management
corporation shall provide for--
``(1) the public housing agency to provide a portion of the
assistance to agency from the Capital and Operating Funds to the
resident management corporation in accordance with subsection
(e) for purposes of operating the public housing project covered
by the contract and performing such other eligible activities
with respect to the project as may be provided under the
contract;
``(2) the amount of income expected to be derived from the
project itself (from sources such as rents and charges);
``(3) the amount of income to be provided to the project
from the other sources of income of the public housing agency
(such as interest income, administrative fees, and rents); and
``(4) any income generated by a resident management
corporation of a public housing project that exceeds the income
estimated under the contract shall be used for eligible
activities under subsections (d)(1) and (e)(1) of section 9.'';
(3) in subsection (d), by striking paragraph (3) and
redesignating paragraph (4) as paragraph (3);
(4) in subsection (e)--
(A) by redesignating paragraph (4) as paragraph (6);
(B) by striking the subsection designation and
heading and all that follows through the end of
paragraph (3) and inserting the following:
``(e) Direct Provision of Operating and Capital Assistance.--
``(1) In general.--The Secretary shall directly provide
assistance from the Operating and Capital Funds to a resident
management corporation managing a public housing development
pursuant to a contract under this section, but only if--
``(A) the resident management corporation petitions
the Secretary for the release of the funds;
[[Page 112 STAT. 2575]]
``(B) the contract provides for the resident
management corporation to assume the primary management
responsibilities of the public housing agency; and
``(C) the Secretary determines that the corporation
has the capability to effectively discharge such
responsibilities.
``(2) Use of assistance.--Any assistance from the Operating
and Capital Funds provided to a resident management corporation
pursuant to this subsection shall be used for purposes of
operating the public housing developments of the agency and
performing such other eligible activities with respect to public
housing as may be provided under the contract.
``(3) Responsibility of public housing agency.--If the
Secretary provides direct funding to a resident management
corporation under this subsection, the public housing agency
shall not be responsible for the actions of the resident
management corporation.
``(4) Calculation of operating fund allocation.--
Notwithstanding any provision of section 9 or any regulation
under such section, and subject to the exception provided in
paragraph (3), the portion of the amount received by a public
housing agency under section 9 that is due to an allocation from
the Operating Fund and that is allocated to a public housing
project managed by a resident management corporation shall not
be less than the public housing agency per unit monthly amount
provided in the previous year as determined on an individual
project basis.
``(5) Calculation of total income.--
``(A) Subject to subparagraph (B), the amount of
funds provided by a public housing agency to a public
housing project managed by a resident management
corporation may not be reduced during the 3-year period
beginning on the date of the enactment of the Housing
and Community Development Act of 1987 or on any later
date on which a resident management corporation is first
established for the project.
``(B) If the total income of a public housing agency
(including any amounts from the Capital or Operating
Funds provided to the public housing agency under
section 9) is reduced or increased, the income provided
by the public housing agency to a public housing project
managed by a resident management corporation shall be
reduced or increased in proportion to the reduction or
increase in the total income of the public housing
agency, except that any reduction in amounts from the
Operating Fund that occurs as a result of fraud, waste,
or mismanagement by the public housing agency shall not
affect the funds provided to the resident management
corporation.''; and
(C) in paragraph (6)(A) (as so redesignated by
subparagraph (A) of this paragraph), by striking ``the
operating subsidies provided to'' and inserting ``the
allocations from the Operating Fund for''; and
(5) by striking subsections (f ) and (g).
(b) Purchase By Resident Management Corporations.--Section 21 of the
United States Housing Act of 1937 (42 U.S.C. 1437s) is amended--
(1) in subsection (a)--
[[Page 112 STAT. 2576]]
(A) in paragraph (2)(A), by striking ``comprehensive
improvement assistance under section 14'' and inserting
``assistance from the Capital Fund'';
(B) in paragraph (3)(A)(v), by striking ``minimum
safety and livability standards applicable under section
14'' and inserting ``housing quality standards
applicable under section 6(f )'';
(C) in paragraph (7)--
(i) by striking ``Annual contributions'' and
inserting ``Capital and operating assistance'';
(ii) in the first sentence, by striking ``pay
annual contributions'' and inserting ``provide
assistance under section 9''; and
(iii) by striking the last sentence and
inserting the following: ``Such assistance may not
exceed the allocation for the project under
section 9.''; and
(D) in paragraph (8), by striking ``Operating
subsidies.--Operating subsidies'' and inserting
``Operating fund allocation.--Amounts from the Operating
Fund'';
(2) in subsection (b)(3)--
(A) by striking ``a certificate under section
8(b)(1) or a housing voucher'' and inserting ``tenant-
based assistance''; and
(B) by striking ``fair market rent for such
certificate'' and inserting ``payment standard for such
assistance''; and
(3) in subsection (d), by inserting ``, as in effect before
the effective date under section 503(a) of the Quality Housing
and Work Responsibility Act of 1998,'' after ``section
6(c)(4)(D)''.
SEC. 533. CONVERSION OF PUBLIC HOUSING TO VOUCHERS; REPEAL OF FAMILY
INVESTMENT CENTERS.
(a) In General.--Section 22 of the United States Housing Act of 1937
(42 U.S.C. 1437t) is amended to read as follows:
``SEC. 22. AUTHORITY TO CONVERT PUBLIC HOUSING TO VOUCHERS.
``(a) Authority.--A public housing agency may convert any public
housing project (or portion thereof) owned by the public housing agency
to tenant-based assistance, but only in accordance with the requirements
of this section.
``(b) Conversion Assessment.--
``(1) In general.--To convert public housing under this
section, a public housing agency shall conduct an assessment of
the public housing that includes--
``(A) a cost analysis that demonstrates whether or
not the cost (both on a net present value basis and in
terms of new budget authority requirements) of providing
tenant-based assistance under section 8 for the same
families in substantially similar dwellings over the
same period of time is less expensive than continuing
public housing assistance in the public housing project
for the remaining useful life of the project;
``(B) an analysis of the market value of the public
housing project both before and after rehabilitation,
and before and after conversion;
``(C) an analysis of the rental market conditions
with respect to the likely success of the use of tenant-
based assistance under section 8 in that market for the
specific
[[Page 112 STAT. 2577]]
residents of the public housing project, including an
assessment of the availability of decent and safe
dwellings renting at or below the payment standard
established for tenant-based assistance under section 8
by the agency;
``(D) the impact of the conversion to tenant-based
assistance under this section on the neighborhood in
which the public housing project is located; and
``(E) a plan that identifies actions, if any, that
the public housing agency would take with regard to
converting any public housing project or projects (or
portions thereof) of the public housing agency to
tenant-based assistance.
``(2) Timing.--Not <<NOTE: Deadline.>> later than 2 years
after the effective date under section 503(a) of the Quality
Housing and Work Responsibility Act of 1998, each public housing
agency shall conduct an assessment under paragraph (1) or (3) of
the status of each public housing project owned by such agency
and shall submit to the Secretary such assessment. A public
housing agency may otherwise undertake an assessment under this
subsection at any time and for any public housing project (or
portion thereof) owned by the agency. A public housing agency
may update a previously conducted assessment for a project (or
portion thereof) for purposes of compliance with the one-year
limitation under subsection (c).
``(3) Streamlined Assessment.--At the discretion of the
Secretary or at the request of a public housing agency, the
Secretary may waive any or all of the requirements of paragraph
(1) or (3) or otherwise require a streamlined assessment with
respect to any public housing project or class of public housing
projects.
``(c) Criteria for Implementation of Conversion Plan.--A public
housing agency may convert a public housing project (or portion thereof)
owned by the agency to tenant-based assistance only pursuant to a
conversion assessment under subsection (b) that one year and that
demonstrates that the conversion--
``(1) will not be more expensive than continuing to operate
the public housing project (or portion thereof) as public
housing;
``(2) will principally benefit the residents of the public
housing project (or portion thereof) to be converted, the public
housing agency, and the community; and
``(3) will not adversely affect the availability of
affordable housing in such community.
``(d) Conversion Plan Requirement.--A public housing project may be
converted under this section to tenant-based assistance only as provided
in a conversion plan under this subsection, which has not been
disapproved by the Secretary pursuant to subsection (e). Each conversion
plan shall--
``(1) be developed by the public housing agency, in
consultation with the appropriate public officials, with
significant participation by the residents of the project (or
portion thereof) to be converted;
``(2) be consistent with and part of the public housing
agency plan;
``(3) describe the conversion and future use or disposition
of the project (or portion thereof) and include an impact
analysis on the affected community;
``(4) provide that the public housing agency shall--
[[Page 112 STAT. 2578]]
``(A) <<NOTE: Notification.>> notify each family
residing in a public housing project (or portion) to be
converted under the plan 90 days prior to the
displacement date except in cases of imminent threat to
health or safety, consistent with any guidelines issued
by the Secretary governing such notifications, that--
``(i) the public housing project (or portion)
will be removed from the inventory of the public
housing agency; and
``(ii) each family displaced by such action
will be offered comparable housing--
``(I) that meets housing quality
standards;
``(II) that is located in an area
that is generally not less desirable
than the location of the displaced
person's housing; and
``(III) which may include--
``(aa) tenant-based
assistance, except that the
requirement under this clause
regarding offering of comparable
housing shall be fulfilled by
use of tenant-based assistance
only upon the relocation of such
family into such housing;
``(bb) project-based
assistance; or
``(cc) occupancy in a unit
operated or assisted by the
public housing agency at a
rental rate paid by the family
that is comparable to the rental
rate applicable to the unit from
which the family is vacated;
``(B) provide any necessary counseling for families
displaced by such action;
``(C) ensure that, if the project (or portion)
converted is used as housing after such conversion, each
resident may choose to remain in their dwelling unit in
the project and use the tenant-based assistance toward
rent for that unit; and
``(D) provide any actual and reasonable relocation
expenses for families displaced by the conversion; and
``(5) provide that any proceeds to the agency from the
conversion will be used subject to the limitations that are
applicable under section 18(a)(5) to proceeds resulting from the
disposition or demolition of public housing.
``(e) Review and Approval of Conversion Plans.--The Secretary shall
disapprove a conversion plan only if--
``(1) the plan is plainly inconsistent with the conversion
assessment for the agency developed under subsection (b);
``(2) there is reliable information and data available to
the Secretary that contradicts that conversion assessment; or
``(3) the plan otherwise fails to meet the requirements of
this section.
``(f ) Tenant-Based Assistance.--To the extent approved by the
Secretary, the funds used by the public housing agency to provide
tenant-based assistance under section 8 shall be added to the annual
contribution contract administered by the public housing agency.''.
(b) Savings <<NOTE: 42 USC 1437t note.>> Provision.--The amendment
made by subsection (a) shall not affect any contract or other agreement
entered into under section 22 of the United States Housing Act of 1937,
as
[[Page 112 STAT. 2579]]
such section existed immediately before the effective date under section
503(a) of the Quality Housing and Work Responsibility Act of 1998.
SEC. 534. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO INDEPENDENT
MANAGER AT REQUEST OF RESIDENTS.
The United States Housing Act of 1937 is amended by striking section
25 (42 U.S.C. 1437w) and inserting the following new section:
``SEC. 25. <<NOTE: 42 USC 1437w.>> TRANSFER OF MANAGEMENT OF CERTAIN
HOUSING TO INDEPENDENT MANAGER AT REQUEST OF RESIDENTS.
``(a) Authority.--The Secretary may transfer the responsibility and
authority for management of specified housing (as such term is defined
in subsection (h)) from a public housing agency to an eligible
management entity, in accordance with the requirements of this section,
if--
``(1) a request for transfer of management of such housing
is made and approved in accordance with subsection (b); and
``(2) the Secretary or the public housing agency, as
appropriate pursuant to subsection (b), determines that--
``(A) due to the mismanagement of the agency, such
housing has deferred maintenance, physical
deterioration, or obsolescence of major systems and
other deficiencies in the physical plant of the project;
``(B) such housing is located in an area such that
the housing is subject to recurrent vandalism and
criminal activity (including drug-related criminal
activity); and
``(C) the residents can demonstrate that the
elements of distress for such housing specified in
subparagraphs (A) and (B) can be remedied by an entity
or entities, identified by the residents, that has or
have a demonstrated capacity to manage, with reasonable
expenses for modernization.
``(b) Request for Transfer.--The responsibility and authority for
managing specified housing may be transferred only pursuant to a request
made by a majority vote of the residents for the specified housing
that--
``(1) in the case of specified housing that is owned by a
public housing agency that is designated as a troubled agency
under section 6( j)(2)--
``(A) is made to the public housing agency or the
Secretary; and
``(B) is approved by the agency or the Secretary; or
``(2) in the case of specified housing that is owned by a
public housing agency that is not designated as a troubled
agency under section 6( j)(2)--
``(A) is made to and approved by the public housing
agency; or
``(B) if a request is made to the agency pursuant to
subparagraph (A) and is not approved, is subsequently
made to and approved by the Secretary.
``(c) Capital and Operating Assistance.--Pursuant to a contract
under subsection (d), the Secretary shall require the public housing
agency for specified housing to provide to the manager for the housing,
from any assistance from the Capital and Operating Funds under section 9
for the agency, fair and reasonable amounts for the housing for eligible
capital and operating activities under
[[Page 112 STAT. 2580]]
subsection (d)(1) and (e)(1) of section 9. The amount made available
under this subsection to a manager shall be determined by the Secretary
based on the share for the specified housing of the aggregate amount of
assistance from such Funds for the public housing agency transferring
the housing, taking into consideration the operating and capital
improvement needs of the specified housing, the operating and capital
improvement needs of the remaining public housing units managed by the
public housing agency, and the public housing agency plan of such
agency.
``(d) Contract Between Secretary and Manager.--
``(1) Requirements.--Pursuant to the approval of a request
under this section for transfer of the management of specified
housing, the Secretary shall enter into a contract with the
eligible management entity.
``(2) Terms.--A contract under this subsection shall contain
provisions establishing the rights and responsibilities of the
manager with respect to the specified housing and the Secretary
and shall be consistent with the requirements of this Act
applicable to public housing projects.
``(e) Compliance With Public Housing Agency Plan.--A manager of
specified housing under this section shall comply with the approved
public housing agency plan applicable to the housing and shall submit
such information to the public housing agency from which management was
transferred as may be necessary for such agency to prepare and update
its public housing agency plan.
``(f ) Demolition and Disposition by Manager.--A manager under this
section may demolish or dispose of specified housing only if, and in the
manner, provided for in the public housing agency plan for the agency
transferring management of the housing.
``(g) Limitation on PHA Liability.--A public housing agency that is
not a manager for specified housing shall not be liable for any act or
failure to act by a manager or resident council for the specified
housing.
``(h) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Eligible management entity.--The term `eligible
management entity' means, with respect to any public housing
project, any of the following entities:
``(A) Nonprofit organization.--A public or private
nonprofit organization, which may--
``(i) include a resident management
corporation; and
``(ii) not include the public housing agency
that owns or operates the project.
``(B) For-profit entity.--A for-profit entity that
has demonstrated experience in providing low-income
housing.
``(C) State or local government.--A State or local
government, including an agency or instrumentality
thereof.
``(D) Public housing agency.--A public housing
agency (other than the public housing agency that owns
or operates the project).
The term does not include a resident council.
``(2) Manager.--The term `manager' means any eligible
management entity that has entered into a contract under
[[Page 112 STAT. 2581]]
this section with the Secretary for the management of specified
housing.
``(3) Nonprofit.--The term `nonprofit' means, with respect
to an organization, association, corporation, or other entity,
that no part of the net earnings of the entity inures to the
benefit of any member, founder, contributor, or individual.
``(4) Private nonprofit organization.--The term `private
nonprofit organization' means any private organization
(including a State or locally chartered organization) that--
``(A) is incorporated under State or local law;
``(B) is nonprofit in character;
``(C) complies with standards of financial
accountability acceptable to the Secretary; and
``(D) has among its purposes significant activities
related to the provision of decent housing that is
affordable to low-income families.
``(5) Public nonprofit organization.--The term `public
nonprofit organization' means any public entity that is
nonprofit in character.
``(6) Specified housing.--The term `specified housing' means
a public housing project or projects, or a portion of a project
or projects, for which the transfer of management is requested
under this section. The term includes one or more contiguous
buildings and an area of contiguous row houses, but in the case
of a single building, the building shall be sufficiently
separable from the remainder of the project of which it is part
to make transfer of the management of the building feasible for
purposes of this section.''.
SEC. 535. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND
TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.
(a) In General.--Section 24 of the United States Housing Act of 1937
(42 U.S.C. 1437v) is amended to read as follows:
``SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND
TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.
``(a) Purposes.--The purpose of this section is to provide
assistance to public housing agencies for the purposes of--
``(1) improving the living environment for public housing
residents of severely distressed public housing projects through
the demolition, rehabilitation, reconfiguration, or replacement
of obsolete public housing projects (or portions thereof);
``(2) revitalizing sites (including remaining public housing
dwelling units) on which such public housing projects are
located and contributing to the improvement of the surrounding
neighborhood;
``(3) providing housing that will avoid or decrease the
concentration of very low-income families; and
``(4) building sustainable communities.
``(b) Grant Authority.--The Secretary may make grants as provided in
this section to applicants whose applications for such grants are
approved by the Secretary under this section.
``(c) Contribution Requirement.--
``(1) In general.--The Secretary may not make any grant
under this section to any applicant unless the applicant
certifies to the Secretary that the applicant will--
[[Page 112 STAT. 2582]]
``(A) supplement the aggregate amount of assistance
provided under this section with an amount of funds from
sources other than this section equal to not less than 5
percent of the amount provided under this section; and
``(B) in addition to supplemental amounts provided
in accordance with subparagraph (A), if the applicant
uses more than 5 percent of the amount of assistance
provided under this section for services under
subsection (d)(1)(L), provide supplemental funds from
sources other than this section in an amount equal to
the amount so used in excess of 5 percent.
``(2) Supplemental funds.--In calculating the amount of
supplemental funds provided by a grantee for purposes of
paragraph (1), the grantee may include amounts from other
Federal sources, any State or local government sources, any
private contributions, the value of any donated material or
building, the value of any lease on a building, the value of the
time and services contributed by volunteers, and the value of
any other in-kind services or administrative costs provided.
``(3) Exemption.--If assistance provided under this title
will be used only for providing tenant-based assistance under
section 8 or demolition of public housing (without replacement),
the Secretary may exempt the applicant from the requirements
under paragraph (1)(A).
``(d) Eligible Activities.--
``(1) In general.--Grants under this section may be used for
activities to carry out revitalization programs for severely
distressed public housing, including--
``(A) architectural and engineering work;
``(B) redesign, rehabilitation, or reconfiguration
of a severely distressed public housing project,
including the site on which the project is located;
``(C) the demolition, sale, or lease of the site, in
whole or in part;
``(D) covering the administrative costs of the
applicant, which may not exceed such portion of the
assistance provided under this section as the Secretary
may prescribe;
``(E) payment of reasonable legal fees;
``(F) providing reasonable moving expenses for
residents displaced as a result of the revitalization of
the project;
``(G) economic development activities that promote
the economic self-sufficiency of residents under the
revitalization program;
``(H) necessary management improvements;
``(I) leveraging other resources, including
additional housing resources, retail supportive
services, jobs, and other economic development uses on
or near the project that will benefit future residents
of the site;
``(J) replacement housing (including appropriate
homeownership downpayment assistance for displaced
residents or other appropriate replacement homeownership
activities) and rental assistance under section 8;
``(K) transitional security activities; and
``(L) necessary supportive services, except that not
more than 15 percent of the amount of any grant may be
used for activities under this paragraph.
[[Page 112 STAT. 2583]]
``(2) Endowment trust for supportive services.--In using
grant amounts under this section made available in fiscal year
2000 or thereafter for supportive services under paragraph
(1)(L), a public housing agency may deposit such amounts in an
endowment trust to provide supportive services over such period
of time as the agency determines. Such amounts shall be provided
to the agency by the Secretary in a lump sum when requested by
the agency, shall be invested in a wise and prudent manner, and
shall be used (together with any interest thereon earned) only
for eligible uses pursuant to paragraph (1)(L). A public housing
agency may use amounts in an endowment trust under this
paragraph in conjunction with other amounts donated or otherwise
made available to the trust for similar purposes.
``(e) Application and Selection.--
``(1) Application.--An application for a grant under this
section shall demonstrate the appropriateness of the proposal in
the context of the local housing market relative to other
alternatives, and shall include such other information and be
submitted at such time and in accordance with such procedures,
as the Secretary shall prescribe.
``(2) Selection criteria.--The Secretary shall establish
selection criteria for the award of grants under this section
and shall include such factors as--
``(A) the relationship of the grant to the public
housing agency plan for the applicant and how the grant
will result in a revitalized site that will enhance the
neighborhood in which the project is located and enhance
economic opportunities for residents;
``(B) the capability and record of the applicant
public housing agency, or any alternative management
entity for the agency, for managing large-scale
redevelopment or modernization projects, meeting
construction timetables, and obligating amounts in a
timely manner;
``(C) the extent to which the applicant could
undertake such activities without a grant under this
section;
``(D) the extent of involvement of residents, State
and local governments, private service providers,
financing entities, and developers, in the development
of a revitalization program for the project;
``(E) the need for affordable housing in the
community;
``(F) the supply of other housing available and
affordable to families receiving tenant-based assistance
under section 8;
``(G) the amount of funds and other resources to be
leveraged by the grant;
``(H) the extent of the need for, and the potential
impact of, the revitalization program; and
``(I) such other factors as the Secretary considers
appropriate.
``(3) Applicability of selection criteria.--The Secretary
may determine not to apply certain of the selection criteria
established pursuant to paragraph (2) when awarding grants for
demolition only, tenant-based assistance only, or other specific
categories of revitalization activities. This section may not be
construed to require any application for a grant under
[[Page 112 STAT. 2584]]
this section to include demolition of public housing or to
preclude use of grant amounts for rehabilitation or rebuilding
of any housing on an existing site.
``(f ) Cost Limits.--Subject to the provisions of this section, the
Secretary--
``(1) shall establish cost limits on eligible activities
under this section sufficient to provide for effective
revitalization programs; and
``(2) may establish other cost limits on eligible activities
under this section.
``(g) Disposition and Replacement.--Any severely distressed public
housing disposed of pursuant to a revitalization plan and any public
housing developed in lieu of such severely distressed housing, shall be
subject to the provisions of section 18. Severely distressed public
housing demolished pursuant to a revitalization plan shall not be
subject to the provisions of section 18.
``(h) Administration by Other Entities.--The Secretary may require a
grantee under this section to make arrangements satisfactory to the
Secretary for use of an entity other than the public housing agency to
carry out activities assisted under the revitalization plan, if the
Secretary determines that such action will help to effectuate the
purposes of this section.
``(i) Withdrawal of Funding.--If a grantee under this section does
not proceed within a reasonable timeframe, in the determination of the
Secretary, the Secretary shall withdraw any grant amounts under this
section that have not been obligated by the public housing agency. The
Secretary shall redistribute any withdrawn amounts to one or more other
applicants eligible for assistance under this section or to one or more
other entities capable of proceeding expeditiously in the same locality
in carrying out the revitalization plan of the original grantee.
``( j) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Applicant.--The term `applicant' means--
``(A) any public housing agency that is not
designated as troubled pursuant to section 6( j)(2);
``(B) any public housing agency for which a private
housing management agent has been selected, or a
receiver has been appointed, pursuant to section 6(
j)(3); and
(C) any public housing agency that is designated as
troubled pursuant to section 6( j)(2) and that--
``(i) is so designated principally for reasons
that will not affect the capacity of the agency to
carry out a revitalization program;
``(ii) is making substantial progress toward
eliminating the deficiencies of the agency; or
``(iii) is otherwise determined by the
Secretary to be capable of carrying out a
revitalization program.
``(2) Severely distressed public housing.--The term
`severely distressed public housing' means a public housing
project (or building in a project)--
``(A) that--
``(i) requires major redesign, reconstruction
or redevelopment, or partial or total demolition,
to correct serious deficiencies in the original
design (including inappropriately high population
density), deferred maintenance, physical
deterioration or obsolescence of
[[Page 112 STAT. 2585]]
major systems and other deficiencies in the
physical plant of the project;
``(ii) is a significant contributing factor to
the physical decline of and disinvestment by
public and private entities in the surrounding
neighborhood;
``(iii)(I) is occupied predominantly by
families who are very low-income families with
children, are unemployed, and dependent on various
forms of public assistance; or
``(II) has high rates of vandalism and
criminal activity (including drug-related criminal
activity) in comparison to other housing in the
area;
``(iv) cannot be revitalized through
assistance under other programs, such as the
program for capital and operating assistance for
public housing under this Act, or the programs
under sections 9 and 14 of the United States
Housing Act of 1937 (as in effect before the
effective date under under section 503(a) the
Quality Housing and Work Responsibility Act of
1998), because of cost constraints and inadequacy
of available amounts; and
``(v) in the case of individual buildings, is,
in the Secretary's determination, sufficiently
separable from the remainder of the project of
which the building is part to make use of the
building feasible for purposes of this section; or
``(B) that was a project described in subparagraph
(A) that has been legally vacated or demolished, but for
which the Secretary has not yet provided replacement
housing assistance (other than tenant-based assistance).
``(3) Supportive services.--The term `supportive services'
includes all activities that will promote upward mobility, self-
sufficiency, and improved quality of life for the residents of
the public housing project involved, including literacy
training, job training, day care, transportation, and economic
development activities.
``(k) Grantee Reporting.--The Secretary shall require grantees of
assistance under this section to report the sources and uses of all
amounts expended for revitalization plans.
``(l) Annual Report.--The Secretary shall submit to the Congress an
annual report setting forth--
``(1) the number, type, and cost of public housing units
revitalized pursuant to this section;
``(2) the status of projects identified as severely
distressed public housing;
``(3) the amount and type of financial assistance provided
under and in conjunction with this section; and
``(4) the recommendations of the Secretary for statutory and
regulatory improvements to the program established by this
section.
``(m) Funding.--
``(1) Authorization of appropriations.--There are authorized
to be appropriated for grants under this section $600,000,000
for fiscal year 1999 and such sums as may be necessary for each
of fiscal years 2000, 2001, and 2002.
``(2) Technical assistance and program oversight.--Of the
amount appropriated pursuant to paragraph (1) for
[[Page 112 STAT. 2586]]
any fiscal year, the Secretary may use up to 2 percent for
technical assistance or contract expertise. Such assistance or
contract expertise may be provided directly or indirectly by
grants, contracts, or cooperative agreements, and shall include
training, and the cost of necessary travel for participants in
such training, by or to officials of the Department of Housing
and Urban Development, of public housing agencies, and of
residents.
``(n) Sunset.--No assistance may be provided under this section
after September 30, 2002.''.
(b) Applicability.--The <<NOTE: 42 USC 1437v note.>> amendment made
by this section is made on, and shall apply beginning upon, the date of
the enactment of this Act.
SEC. 536. HOMEOWNERSHIP.
Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new section:
``SEC. 32. <<NOTE: 42 USC 1437z-4.>> RESIDENT HOMEOWNERSHIP PROGRAMS.
``(a) In General.--A public housing agency may carry out a
homeownership program in accordance with this section and the public
housing agency plan of the agency to make public housing dwelling units,
public housing projects, and other housing projects available for
purchase by low-income families for use only as principal residences for
such families. An agency may transfer a unit pursuant to a homeownership
program only if the program is authorized under this section and
approved by the Secretary.
``(b) Participating Units.--A program under this section may cover
any existing public housing dwelling units or projects, and may include
other dwelling units and housing owned, assisted, or operated, or
otherwise acquired for use under such program, by the public housing
agency.
``(c) Eligible Purchasers.--
``(1) Low-income requirement.--Only low-income families
assisted by a public housing agency, other low-income families,
and entities formed to facilitate such sales by purchasing units
for resale to low-income families shall be eligible to purchase
housing under a homeownership program under this section.
``(2) Other requirements.--A public housing agency may
establish other requirements or limitations for families to
purchase housing under a homeownership program under this
section, including requirements or limitations regarding
employment or participation in employment counseling or training
activities, criminal activity, participation in homeownership
counseling programs, evidence of regular income, and other
requirements. In the case of purchase by an entity for resale to
low-income families, the entity shall sell the units to low-
income families within 5 years from the date of its acquisition
of the units. The entity shall use any net proceeds from the
resale and from managing the units, as determined in accordance
with guidelines of the Secretary, for housing purposes, such as
funding resident organizations and reserves for capital
replacements.
``(d) Right of First Refusal.--In making any sale under this
section, the public housing agency shall initially offer the public
housing unit at issue to the resident or residents occupying that
[[Page 112 STAT. 2587]]
unit, if any, or to an organization serving as a conduit for sales to
any such resident.
``(e) Protection of Nonpurchasing Residents.--If a public housing
resident does not exercise the right of first refusal under subsection
(d) with respect to the public housing unit in which the resident
resides, the public housing agency--
``(1) <<NOTE: Notification.>> shall notify the resident
residing in the unit 90 days prior to the displacement date
except in cases of imminent threat to health or safety,
consistent with any guidelines issued by the Secretary governing
such notifications, that--
``(A) the public housing unit will be sold;
``(B) the transfer of possession of the unit will
occur until the resident is relocated; and
``(C) each resident displaced by such action will be
offered comparable housing--
``(i) that meets housing quality standards;
``(ii) that is located in an area that is
generally not less desirable than the location of
the displaced resident's housing; and
``(iii) which may include--
``(I) tenant-based assistance,
except that the requirement under this
subclause regarding offering of
comparable housing shall be fulfilled by
use of tenant-based assistance only upon
the relocation of such resident into
such housing;
``(II) project-based assistance; or
``(III) occupancy in a unit owned,
operated, or assisted by the public
housing agency at a rental rate paid by
the resident that is comparable to the
rental rate applicable to the unit from
which the resident is vacated;
``(2) shall provide for the payment of the actual and
reasonable relocation expenses of the resident to be displaced;
``(3) shall ensure that the displaced resident is offered
comparable housing in accordance with the notice under paragraph
(1);
``(4) shall provide any necessary counseling for the
displaced resident; and
``(5) shall not transfer possession of the unit until the
resident is relocated.
``(f ) Financing and Assistance.--A homeownership program under this
section may provide financing for acquisition of housing by families
purchasing under the program, or for acquisition of housing by the
public housing agency for sale under the program, in any manner
considered appropriate by the agency (including sale to a resident
management corporation).
``(g) Downpayment Requirement.--
``(1) In general.--Each family purchasing housing under a
homeownership program under this section shall be required to
provide from its own resources a downpayment in connection with
any loan for acquisition of the housing, in an amount determined
by the public housing agency. Except as provided in paragraph
(2), the agency shall permit the family to use grant amounts,
gifts from relatives, contributions from private sources, and
similar amounts as downpayment amounts in such purchase.
[[Page 112 STAT. 2588]]
``(2) Direct family contribution.--In purchasing housing
pursuant to this section, each family shall contribute an amount
of the downpayment, from resources of the family other than
grants, gifts, contributions, or other similar amounts referred
to in paragraph (1), that is not less than 1 percent of the
purchase price.
``(h) Ownership Interests.--A homeownership program under this
section may provide for sale to the purchasing family of any ownership
interest that the public housing agency considers appropriate under the
program, including ownership in fee simple, a condominium interest, an
interest in a limited dividend cooperative, a shared appreciation
interest with a public housing agency providing financing.
``(i) Resale.--
``(1) Authority and limitation.--A homeownership program
under this section shall permit the resale of a dwelling unit
purchased under the program by an eligible family, but shall
provide such limitations on resale as the agency considers
appropriate (whether the family purchases directly from the
agency or from another entity) for the agency to recapture--
``(A) some or all of the economic gain derived from
any such resale occurring during the 5-year period
beginning upon purchase of the dwelling unit by the
eligible family; and
``(B) after the expiration of such 5-year period,
only such amounts as are equivalent to the assistance
provided under this section by the agency to the
purchaser.
``(2) Considerations.--The limitations referred to in
paragraph (1)(A) may provide for consideration of the aggregate
amount of assistance provided under the program to the family,
the contribution to equity provided by the purchasing eligible
family, the period of time elapsed between purchase under the
homeownership program and resale, the reason for resale, any
improvements to the property made by the eligible family, any
appreciation in the value of the property, and any other factors
that the agency considers appropriate.
``( j) Net Proceeds.--The net proceeds of any sales under a
homeownership program under this section remaining after payment of all
costs of the sale shall be used for purposes relating to low-income
housing and in accordance with the public housing agency plan of the
agency carrying out the program.
``(k) Homeownership Assistance.--From amounts distributed to a
public housing agency under the Capital Fund under section 9(d), or from
other income earned by the public housing agency, the public housing
agency may provide assistance to public housing residents to facilitate
the ability of those residents to purchase a principal residence,
including a residence other than a residence located in a public housing
project.
``(l) Inapplicability of Disposition Requirements.--The provisions
of section 18 shall not apply to disposition of public housing dwelling
units under a homeownership program under this section.''.
SEC. 537. REQUIRED CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-
BASED ASSISTANCE.
(a) In General.--Title I of the United States Housing Act of 1937
(42 U.S.C. 1437 et seq.), as amended by the preceding
[[Page 112 STAT. 2589]]
provisions of this Act, is further amended by adding at the end the
following new section:
``SEC. 33. <<NOTE: 42 USC 1437z-5.>> REQUIRED CONVERSION OF DISTRESSED
PUBLIC HOUSING TO TENANT-BASED ASSISTANCE.
``(a) Identification of Units.--Each public housing agency shall
identify all public housing projects of the public housing agency that
meet all of the following requirements:
``(1) The project is on the same or contiguous sites.
``(2) <<NOTE: Guidelines.>> The project is determined by the
public housing agency to be distressed, which determination
shall be made in accordance with guidelines established by the
Secretary, which guidelines shall take into account the criteria
established in the Final Report of the National Commission on
Severely Distressed Public Housing (August 1992).
``(3) The project--
``(A) is identified as distressed housing under
paragraph (2) for which the public housing agency cannot
assure the long-term viability as public housing through
reasonable modernization expenses, density reduction,
achievement of a broader range of family income, or
other measures; or
``(B) has an estimated cost, during the remaining
useful life of the project, of continued operation and
modernization as public housing that exceeds the
estimated cost, during the remaining useful life of the
project, of providing tenant-based assistance under
section 8 for all families in occupancy, based on
appropriate indicators of cost (such as the percentage
of total development costs required for modernization).
``(b) Consultation.--Each public housing agency shall consult with
the appropriate public housing residents and the appropriate unit of
general local government in identifying any public housing projects
under subsection (a).
``(c) Plan for Removal of Units From Inventories of PHA's.--
``(1) Development.--Each public housing agency shall develop
and carry out a 5-year plan in conjunction with the Secretary
for the removal of public housing units identified under
subsection (a) from the inventory of the public housing agency
and the annual contributions contract.
``(2) Approval.--Each plan required under paragraph (1)
shall--
``(A) be included as part of the public housing
agency plan;
``(B) be certified by the relevant local official to
be in accordance with the comprehensive housing
affordability strategy under title I of the Housing and
Community Development Act of 1992; and
``(C) include a description of any disposition and
demolition plan for the public housing units.
``(3) Extensions.--The Secretary may extend the 5-year
deadline described in paragraph (1) by not more than an
additional 5 years if the Secretary makes a determination that
the deadline is impracticable.
``(4) Review by secretary.--
[[Page 112 STAT. 2590]]
``(A) Failure to identify projects.--If the
Secretary determines, based on a plan submitted under
this subsection, that a public housing agency has failed
to identify 1 or more public housing projects that the
Secretary determines should have been identified under
subsection (a), the Secretary may designate the public
housing projects to be removed from the inventory of the
public housing agency pursuant to this section.
``(B) Erroneous identification of projects.--If the
Secretary determines, based on a plan submitted under
this subsection, that a public housing agency has
identified 1 or more public housing projects that should
not have been identified pursuant to subsection (a), the
Secretary shall--
``(i) require the public housing agency to
revise the plan of the public housing agency under
this subsection; and
``(ii) prohibit the removal of any such public
housing project from the inventory of the public
housing agency under this section.
``(d) Conversion to Tenant-Based Assistance.--
``(1) In general.--To the extent approved in advance in
appropriations Acts, the Secretary shall make budget authority
available to a public housing agency to provide assistance under
this Act to families residing in any public housing project
that, pursuant to this section, is removed from the inventory of
the agency and the annual contributions contract of the agency.
``(2) Conversion requirements.--Each agency carrying out a
plan under subsection (c) for removal of public housing dwelling
units from the inventory of the agency shall--
``(A) <<NOTE: Notification.>> notify each family
residing in a public housing project to be converted
under the plan 90 days prior to the displacement date,
except in cases of imminent threat to health or safety,
consistent with any guidelines issued by the Secretary
governing such notifications, that--
``(i) the public housing project will be
removed from the inventory of the public housing
agency; and
``(ii) each family displaced by such action
will be offered comparable housing--
``(I) that meets housing quality
standards; and
``(II) which may include--
``(aa) tenant-based
assistance, except that the
requirement under this clause
regarding offering of comparable
housing shall be fulfilled by
use of tenant-based assistance
only upon the relocation of such
family into such housing;
``(bb) project-based
assistance; or
``(cc) occupancy in a unit
operated or assisted by the
public housing agency at a
rental rate paid by the family
that is comparable to the rental
rate applicable to the unit from
which the family is vacated.
``(B) provide any necessary counseling for families
displaced by such action;
[[Page 112 STAT. 2591]]
``(C) ensure that, if the project (or portion)
converted is used as housing after such conversion, each
resident may choose to remain in their dwelling unit in
the project and use the tenant-based assistance toward
rent for that unit;
``(D) ensure that each displaced resident is offered
comparable housing in accordance with the notice under
subparagraph (A); and
``(E) provide any actual and reasonable relocation
expenses for families displaced by such action.
``(e) Cessation of Unnecessary Spending.--Notwithstanding any other
provision of law, if, in the determination of the Secretary, a project
or projects of a public housing agency meet or are likely to meet the
criteria set forth in subsection (a), the Secretary may direct the
agency to cease additional spending in connection with such project or
projects until the Secretary determines or approves an appropriate
course of action with respect to such project or projects under this
section, except to the extent that failure to expend such amounts would
endanger the health or safety of residents in the project or projects.
``(f ) Use of Budget Authority.--Notwithstanding any other provision
of law, if a project or projects are identified pursuant to subsection
(a), the Secretary may authorize or direct the transfer, to the tenant-
based assistance program of such agency or to appropriate site
revitalization or other capital improvements approved by the Secretary,
of--
``(1) in the case of an agency receiving assistance under
the comprehensive improvement assistance program, any amounts
obligated by the Secretary for the modernization of such project
or projects pursuant to section 14 of the United States Housing
Act of 1937 (as in effect immediately before the effective date
under section 503(a) of the Quality Housing and Work
Responsibility Act of 1998);
``(2) in the case of an agency receiving public housing
modernization assistance by formula pursuant to such section 14,
any amounts provided to the agency which are attributable
pursuant to the formula for allocating such assistance to such
project or projects;
``(3) in the case of an agency receiving assistance for the
major reconstruction of obsolete projects, any amounts obligated
by the Secretary for the major reconstruction of such project or
projects pursuant to section 5( j)(2) of the United States
Housing Act of 1937, as in effect immediately before the
effective date under section 503(a) of the Quality Housing and
Work Responsibility Act of 1998; and
``(4) in the case of an agency receiving assistance pursuant
to the formulas under section 9, any amounts provided to the
agency which are attributable pursuant to the formulas for
allocating such assistance to such project or projects.
``(g) Removal by Secretary.--The Secretary shall take appropriate
actions to ensure removal of any public housing project identified under
subsection (a) from the inventory of a public housing agency, if the
public housing agency fails to adequately develop a plan under
subsection (c) with respect to that project, or fails to adequately
implement such plan in accordance with the terms of the plan.
``(h) Administration.--
[[Page 112 STAT. 2592]]
``(1) In general.--The Secretary may require a public
housing agency to provide to the Secretary or to public housing
residents such information as the Secretary considers to be
necessary for the administration of this section.
``(2) Applicability of section 18.--Section 18 shall not
apply to the demolition of public housing projects removed from
the inventory of the public housing agency under this
section.''.
(b) Conforming Amendment.--Section 202 of the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (42 U.S.C. 1437l note) is repealed.
(c) <<NOTE: 42 USC 1437z-5 note.>> Transition.--
(1) Use of amounts.--Any amounts made available to a public
housing agency to carry out section 202 of the Departments of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (enacted as
section 101(e) of the Omnibus Consolidated Rescissions and
Appropriations Act of 1996 (Public Law 104-134; 110 Stat. 1321-
279)) may be used, to the extent or in such amounts as are or
have been provided in advance in appropriation Acts, to carry
out section 33 of the United States Housing Act of 1937 (as
added by subsection (a) of this section).
(2) Savings <<NOTE: Applicability.>> provision.--
Notwithstanding the amendments made by this section, section 202
of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996
(42 U.S.C. 14371 note) and any regulations implementing such
section, as in effect immediately before the enactment of this
Act, shall continue to apply to public housing developments
identified by the Secretary or a public housing agency for
conversion pursuant to that section or for assessment of whether
such conversion is required prior to enactment of this Act.
SEC. 538. LINKING SERVICES TO PUBLIC HOUSING RESIDENTS.
(a) In General.--Title I of the United States Housing Act of 1937
(42 U.S.C. 1437 et seq.), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following new section:
``SEC. 34. <<NOTE: 42 USC 1437z-6.>> SERVICES FOR PUBLIC HOUSING
RESIDENTS.
``(a) In General.--To the extent that amounts are provided in
advance in appropriations Acts, the Secretary may make grants to public
housing agencies on behalf of public housing residents, or directly to
resident management corporations, resident councils, or resident
organizations (including nonprofit entities supported by residents), for
the purposes of providing a program of supportive services and resident
empowerment activities to provide supportive services to public housing
residents or assist such residents in becoming economically self-
sufficient.
``(b) Eligible Activities.--Grantees under this section may use such
amounts only for activities on or near the property of the public
housing agency or public housing project that are designed to promote
the self-sufficiency of public housing residents or provide supportive
services for such residents, including activities relating to--
``(1) physical improvements to a public housing project in
order to provide space for supportive services for residents;
[[Page 112 STAT. 2593]]
``(2) the provision of service coordinators or a congregate
housing services program for elderly individuals, elderly
disabled individuals, nonelderly disabled individuals, or
temporarily disabled individuals;
``(3) the provision of services related to work readiness,
including education, job training and counseling, job search
skills, business development training and planning, tutoring,
mentoring, adult literacy, computer access, personal and family
counseling, health screening, work readiness health services,
transportation, and child care;
``(4) economic and job development, including employer
linkages and job placement, and the start-up of resident
microenterprises, community credit unions, and revolving loan
funds, including the licensing, bonding, and insurance needed to
operate such enterprises;
``(5) resident management activities and resident
participation activities; and
``(6) other activities designed to improve the economic
self-sufficiency of residents.
``(c) Funding Distribution.--
``(1) In general.--Except for amounts provided under
subsection (d), the Secretary may distribute amounts made
available under this section on the basis of a competition or a
formula, as appropriate.
``(2) Factors for distribution.--Factors for distribution
under paragraph (1) shall include--
``(A) the demonstrated capacity of the applicant to
carry out a program of supportive services or resident
empowerment activities;
``(B) the ability of the applicant to leverage
additional resources for the provision of services; and
``(C) the extent to which the grant will result in a
high quality program of supportive services or resident
empowerment activities.
``(d) Matching Requirement.--The Secretary may not make any grant
under this section to any applicant unless the applicant supplements
amounts made available under this section with funds from sources other
than this section in an amount equal to not less than 25 percent of the
grant amount. Such supplemental amounts may include--
``(1) funds from other Federal sources;
``(2) funds from any State or local government sources;
``(3) funds from private contributions; and
``(4) the value of any in-kind services or administrative
costs provided to the applicant.
``(e) Funding for Resident Organizations.--To the extent that there
are a sufficient number of qualified applications for assistance under
this section, not less than 25 percent of any amounts appropriated to
carry out this section shall be provided directly to resident councils,
resident organizations, and resident management corporations. In any
case in which a resident council, resident organization, or resident
management corporation lacks adequate expertise, the Secretary may
require the council, organization, or corporation to utilize other
qualified organizations as contract administrators with respect to
financial assistance provided under this section.''.
[[Page 112 STAT. 2594]]
(b) Assessment <<NOTE: Deadline.>> and Report by Secretary.--Not
later than 3 years after the date of the enactment of the Quality
Housing and Work Responsibility Act of 1998, the Secretary of Housing
and Urban Development shall--
(1) conduct an evaluation and assessment of grants carried
out by resident organizations, and particularly of the effect of
the grants on living conditions in public housing; and
(2) submit to the Congress a report setting forth the
findings of the Secretary as a result of the evaluation and
assessment and including any recommendations the Secretary
determines to be appropriate.
This <<NOTE: Effective date.>> subsection shall take effect on the
date of the enactment of this Act.
SEC. 539. MIXED-FINANCE PUBLIC HOUSING.
Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new section:
``SEC. 35. <<NOTE: 42 USC 1437z-7.>> MIXED FINANCE PUBLIC HOUSING.
``(a) Authority.--A public housing agency may own, operate, assist,
or otherwise participate in 1 or more mixed-finance projects in
accordance with this section.
``(b) Assistance.--
``(1) Forms.--A public housing agency may provide to a
mixed-finance project assistance from the Operating Fund under
section 9, assistance from the Capital Fund under such section,
or both forms of assistance. A public housing agency may, in
accordance with regulations established by the Secretary,
provide capital assistance to a mixed-finance project in the
form of a grant, loan, guarantee, or other form of investment in
the project, which may involve drawdown of funds on a schedule
commensurate with construction draws for deposit into an
interest-bearing escrow account to serve as collateral or credit
enhancement for bonds issued by a public agency, or for other
forms of public or private borrowings, for the construction or
rehabilitation of the development.
``(2) Use.--To the extent deemed appropriate by the
Secretary, assistance used in connection with the costs
associated with the operation and management of mixed-finance
projects may be used for funding of an operating reserve to
ensure affordability for low-income and very low-income families
in lieu of the availability of operating funds for public
housing units in a mixed-finance project.
``(c) Compliance With Public Housing Requirements.--The units
assisted with capital or operating assistance in a mixed-finance project
shall be developed, operated, and maintained in accordance with the
requirements of this Act relating to public housing during the period
required by under this Act, unless otherwise specified in this section.
For purposes of this Act, any reference to public housing owned or
operated by a public housing agency shall include dwelling units in a
mixed finance project that are assisted by the agency with capital or
operating assistance.
``(d) Mixed-Finance Projects.--
``(1) In general.--For purposes of this section, the term
`mixed-finance project' means a project that meets the
requirements of paragraph (2) and is financially assisted by
private
[[Page 112 STAT. 2595]]
resources, which may include low-income housing tax credits, in
addition to amounts provided under this Act.
``(2) Types of projects.--The term includes a project that
is developed--
``(A) by a public housing agency or by an entity
affiliated with a public housing agency;
``(B) by a partnership, a limited liability company,
or other entity in which the public housing agency (or
an entity affiliated with a public housing agency) is a
general partner, managing member, or otherwise
participates in the activities of that entity;
``(C) by any entity that grants to the public
housing agency the right of first refusal and first
option to purchase, after the close of the compliance
period, of the qualified low-income building in which
the public housing units exist in accordance with
section 42(i)(7) of the Internal Revenue Code of 1986;
or
``(D) in accordance with such other terms and
conditions as the Secretary may prescribe by regulation.
``(e) Structure of Projects.--Each mixed-finance project shall be
developed--
``(1) in a manner that ensures that public housing units are
made available in the project, by regulatory and operating
agreement, master contract, individual lease, condominium or
cooperative agreement, or equity interest;
``(2) in a manner that ensures that the number of public
housing units bears approximately the same proportion to the
total number of units in the mixed-finance project as the value
of the total financial commitment provided by the public housing
agency bears to the value of the total financial commitment in
the project, or shall not be less than the number of units that
could have been developed under the conventional public housing
program with the assistance, or as may otherwise be approved by
the Secretary; and
``(3) in accordance with such other requirements as the
Secretary may prescribe by regulation.
``(f ) Taxation.--
``(1) In general.--A public housing agency may elect to
exempt all public housing units in a mixed-finance project--
``(A) from the provisions of section 6(d), and
instead subject such units to local real estate taxes;
and
``(B) from the finding of need and cooperative
agreement provisions under section 5(e)(1)(ii) and
5(e)(2), but only if the development of the units is not
inconsistent with the jurisdiction's comprehensive
housing affordability strategy.
``(2) Low-income housing tax credit.--With respect to any
unit in a mixed-finance project that is assisted pursuant to the
low-income housing tax credit under section 42 of the Internal
Revenue Code of 1986, the rents charged to the residents may be
set at levels not to exceed the amounts allowable under that
section, provided that such levels for public housing residents
do not exceed the amounts allowable under section 3.
``(g) Use of Savings.--Notwithstanding any other provision of this
Act, to the extent deemed appropriate by the Secretary,
[[Page 112 STAT. 2596]]
to facilitate the establishment of socioeconomically mixed communities,
a public housing agency that uses assistance from the Capital Fund for a
mixed-finance project, to the extent that income from such a project
reduces the amount of assistance used for operating or other costs
relating to public housing, may use such resulting savings to rent
privately developed dwelling units in the neighborhood of the mixed-
finance project. Such units shall be made available for occupancy only
by low-income families eligible for residency in public housing.
``(h) Effect of Certain Contract Terms.--If an entity that owns or
operates a mixed-finance project, that includes a significant number of
units other than public housing units enters into a contract with a
public housing agency, the terms of which obligate the entity to operate
and maintain a specified number of units in the project as public
housing units in accordance with the requirements of this Act for the
period required by law, such contractual terms may provide that, if, as
a result of a reduction in appropriations under section 9 or any other
change in applicable law, the public housing agency is unable to fulfill
its contractual obligations with respect to those public housing units,
that entity may deviate, under procedures and requirements developed
through regulations by the Secretary, from otherwise applicable
restrictions under this Act regarding rents, income eligibility, and
other areas of public housing management with respect to a portion or
all of those public housing units, to the extent necessary to preserve
the viability of those units while maintaining the low-income character
of the units to the maximum extent practicable.''.
(b) Regulations.--The <<NOTE: 42 USC 1437z-7 note.>> Secretary shall
issue such regulations as may be necessary to promote the development of
mixed-finance projects, as that term is defined in section 3(b) of the
United States Housing Act of 1937 (as amended by this Act).
Subtitle C--Section 8 Rental and Homeownership Assistance
SEC. 545. MERGER OF CERTIFICATE AND VOUCHER PROGRAMS.
(a) In General.--Section 8(o) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)) is amended to read as follows:
``(o) Voucher Program.--
``(1) Authority.--
``(A) In general.--The Secretary may provide
assistance to public housing agencies for tenant-based
assistance using a payment standard established in
accordance with subparagraph (B). The payment standard
shall be used to determine the monthly assistance that
may be paid for any family, as provided in paragraph
(2).
``(B) Establishment of payment standard.--Except as
provided under subparagraph (D), the payment standard
for each size of dwelling unit in a market area shall
not exceed 110 percent of the fair market rental
established under subsection (c) for the same size of
dwelling unit in the same market area and shall be not
less than 90 percent of that fair market rental.
``(C) Set-aside.--The Secretary may set aside not
more than 5 percent of the budget authority made
available for assistance under this subsection as an
adjustment pool.
[[Page 112 STAT. 2597]]
The Secretary shall use amounts in the adjustment pool
to make adjusted payments to public housing agencies
under subparagraph (A), to ensure continued
affordability, if the Secretary determines that
additional assistance for such purpose is necessary,
based on documentation submitted by a public housing
agency.
``(D) Approval.--The Secretary may require a public
housing agency to submit the payment standard of the
public housing agency to the Secretary for approval, if
the payment standard is less than 90 percent of the fair
market rental or exceeds 110 percent of the fair market
rental.
``(E) Review.--The Secretary--
``(i) shall monitor rent burdens and review
any payment standard that results in a significant
percentage of the families occupying units of any
size paying more than 30 percent of adjusted
income for rent; and
``(ii) may require a public housing agency to
modify the payment standard of the public housing
agency based on the results of that review.
``(2) Amount of monthly assistance payment.--Subject to the
requirement under section 3(a)(3) (relating to minimum rental
amount), the monthly assistance payment for a family receiving
assistance under this subsection shall be determined as follows:
``(A) Tenant-based assistance; rent not exceeding
payment standard.--For a family receiving tenant-based
assistance, if the rent for the family (including the
amount allowed for tenant-paid utilities) does not
exceed the applicable payment standard established under
paragraph (1), the monthly assistance payment for the
family shall be equal to the amount by which the rent
(including the amount allowed for tenant-paid utilities)
exceeds the greatest of the following amounts, rounded
to the nearest dollar:
``(i) 30 percent of the monthly adjusted
income of the family.
``(ii) 10 percent of the monthly income of the
family.
``(iii) If the family is receiving payments
for welfare assistance from a public agency and a
part of those payments, adjusted in accordance
with the actual housing costs of the family, is
specifically designated by that agency to meet the
housing costs of the family, the portion of those
payments that is so designated.
``(B) Tenant-based assistance; rent exceeding
payment standard.--For a family receiving tenant-based
assistance, if the rent for the family (including the
amount allowed for tenant-paid utilities) exceeds the
applicable payment standard established under paragraph
(1), the monthly assistance payment for the family shall
be equal to the amount by which the applicable payment
standard exceeds the greatest of amounts under clauses
(i), (ii), and (iii) of subparagraph (A).
``(C) Families receiving project-based assistance.--
For a family receiving project-based assistance, the
rent that the family is required to pay shall be
determined in accordance with section 3(a)(1), and the
amount of the
[[Page 112 STAT. 2598]]
housing assistance payment shall be determined in
accordance with subsection (c)(3) of this section.
``(3) 40 percent limit.--At the time a family initially
receives tenant-based assistance under this section with respect
to any dwelling unit, the total amount that a family may be
required to pay for rent may not exceed 40 percent of the
monthly adjusted income of the family.
``(4) Eligible families.--To be eligible to receive
assistance under this subsection, a family shall, at the time a
family initially receives assistance under this subsection, be a
low-income family that is--
``(A) a very low-income family;
``(B) a family previously assisted under this title;
``(C) a low-income family that meets eligibility
criteria specified by the public housing agency;
``(D) a family that qualifies to receive a voucher
in connection with a homeownership program approved
under title IV of the Cranston-Gonzalez National
Affordable Housing Act; or
``(E) a family that qualifies to receive a voucher
under section 223 or 226 of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990.
``(5) Annual review of family income.--
``(A) In general.--Reviews of family incomes for
purposes of this section shall be subject to the
provisions of section 904 of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988 and shall be
conducted upon the initial provision of housing
assistance for the family and thereafter not less than
annually.
``(B) Procedures.--Each public housing agency
administering assistance under this subsection shall
establish procedures that are appropriate and necessary
to ensure that income data provided to the agency and
owners by families applying for or receiving assistance
from the agency is complete and accurate. Each public
housing agency shall, not less frequently than annually,
conduct a review of the family income of each family
receiving assistance under this subsection.
``(6) Selection of families and disapproval of
owners.--
``(A) Preferences.--
``(i) Authority to establish.--Each public
housing agency may establish a system for making
tenant-based assistance under this subsection
available on behalf of eligible families that
provides preference for such assistance to
eligible families having certain characteristics,
which may include a preference for families
residing in public housing who are victims of a
crime of violence (as such term is defined in
section 16 of title 18, United States Code) that
has been reported to an appropriate law
enforcement agency.
``(ii) Content.--Each system of preferences
established pursuant to this subparagraph shall be
based upon local housing needs and priorities, as
determined by the public housing agency using
generally accepted data sources, including any
information obtained
[[Page 112 STAT. 2599]]
pursuant to an opportunity for public comment as
provided under section 5A(f ) and under the
requirements applicable to the comprehensive
housing affordability strategy for the relevant
jurisdiction.
``(B) Selection of tenants.--Each housing assistance
payment contract entered into by the public housing
agency and the owner of a dwelling unit) shall provide
that the screening and selection of families for those
units shall be the function of the owner. In addition,
the public housing agency may elect to screen applicants
for the program in accordance with such requirements as
the Secretary may establish.
``(C) PHA disapproval of owners.--In addition to
other grounds authorized by the Secretary, a public
housing agency may elect not to enter into a housing
assistance payments contract under this subsection with
an owner who refuses, or has a history of refusing, to
take action to terminate tenancy for activity engaged in
by the tenant, any member of the tenant's household, any
guest, or any other person under the control of any
member of the household that--
``(i) threatens the health or safety of, or
right to peaceful enjoyment of the premises by,
other tenants or employees of the public housing
agency, owner, or other manager of the housing;
``(ii) threatens the health or safety of, or
right to peaceful enjoyment of the residences by,
persons residing in the immediate vicinity of the
premises; or
``(iii) is drug-related or violent criminal
activity.
``(7) Leases and tenancy.--Each housing assistance payment
contract entered into by the public housing agency and the owner
of a dwelling unit--
``(A) shall provide that the lease between the
tenant and the owner shall be for a term of not less
than 1 year, except that the public housing agency may
approve a shorter term for an initial lease between the
tenant and the dwelling unit owner if the public housing
agency determines that such shorter term would improve
housing opportunities for the tenant and if such shorter
term is considered to be a prevailing local market
practice;
``(B) shall provide that the dwelling unit owner
shall offer leases to tenants assisted under this
subsection that--
``(i) are in a standard form used in the
locality by the dwelling unit owner; and
``(ii) contain terms and conditions that--
``(I) are consistent with State and
local law; and
``(II) apply generally to tenants in
the property who are not assisted under
this section;
``(C) shall provide that during the term of the
lease, the owner shall not terminate the tenancy except
for serious or repeated violation of the terms and
conditions of the lease, for violation of applicable
Federal, State, or local law, or for other good cause;
``(D) shall provide that during the term of the
lease, any criminal activity that threatens the health,
safety,
[[Page 112 STAT. 2600]]
or right to peaceful enjoyment of the premises by other
tenants, any criminal activity that threatens the
health, safety, or right to peaceful enjoyment of their
residences by persons residing in the immediate vicinity
of the premises, or any violent or drug-related criminal
activity on or near such premises, engaged in by a
tenant of any unit, any member of the tenant's
household, or any guest or other person under the
tenant's control, shall be cause for termination of
tenancy;
``(E) shall provide that any termination of tenancy
under this subsection shall be preceded by the provision
of written notice by the owner to the tenant specifying
the grounds for that action, and any relief shall be
consistent with applicable State and local law; and
``(F) may include any addenda required by the
Secretary to set forth the provisions of this
subsection.
``(8) Inspection of units by pha's.--
``(A) In general.--Except as provided in paragraph
(11), for each dwelling unit for which a housing
assistance payment contract is established under this
subsection, the public housing agency shall inspect the
unit before any assistance payment is made to determine
whether the dwelling unit meets the housing quality
standards under subparagraph (B).
``(B) Housing quality standards.--The housing
quality standards under this subparagraph are standards
for safe and habitable housing established--
``(i) by the Secretary for purposes of this
subsection; or
``(ii) by local housing codes or by codes
adopted by public housing agencies that--
``(I) meet or exceed housing quality
standards, except that the Secretary may
waive the requirement under this
subclause to significantly increase
access to affordable housing and to
expand housing opportunities for
families assisted under this subsection,
except where such waiver could adversely
affect the health or safety of families
assisted under this subsection; and
``(II) do not severely restrict
housing choice
``(C) Inspection.--The determination required under
subparagraph (A) shall be made by the public housing
agency (or other entity, as provided in paragraph (11))
pursuant to an inspection of the dwelling unit conducted
before any assistance payment is made for the unit.
Inspections of dwelling units under this subparagraph
shall be made before the expiration of the 15-day period
beginning upon a request by the resident or landlord to
the public housing agency or, in the case of any public
housing agency that provides assistance under this
subsection on behalf of more than 1250 families, before
the expiration of a reasonable period beginning upon
such request. The performance of the agency in meeting
the 15-day inspection deadline shall be taken into
consideration in assessing the performance of the
agency.
``(D) Annual inspections.--Each public housing
agency providing assistance under this subsection (or
other
[[Page 112 STAT. 2601]]
entity, as provided in paragraph (11)) shall make an
annual inspection of each assisted dwelling unit during
the term of the housing assistance payments contract for
the unit to determine whether the unit is maintained in
accordance with the requirements under subparagraph
(A). <<NOTE: Records.>> The agency (or other entity)
shall retain the records of the inspection for a
reasonable time and shall make the records available
upon request to the Secretary, the Inspector General for
the Department of Housing and Urban Development, and any
auditor conducting an audit under section 5(h).
``(E) Inspection guidelines.--The Secretary shall
establish procedural guidelines and performance
standards to facilitate inspections of dwelling units
and conform such inspections with practices utilized in
the private housing market. Such guidelines and
standards shall take into consideration variations in
local laws and practices of public housing agencies and
shall provide flexibility to authorities appropriate to
facilitate efficient provision of assistance under this
subsection.
``(9) Vacated units.--If an assisted family vacates a
dwelling unit for which rental assistance is provided under a
housing assistance payment contract before the expiration of the
term of the lease for the unit, rental assistance pursuant to
such contract may not be provided for the unit after the month
during which the unit was vacated.
``(10) Rent.--
``(A) Reasonableness.--The rent for dwelling units
for which a housing assistance payment contract is
established under this subsection shall be reasonable in
comparison with rents charged for comparable dwelling
units in the private, unassisted local market.
``(B) Negotiations.--A public housing agency (or
other entity, as provided in paragraph (11)) shall, at
the request of a family receiving tenant-based
assistance under this subsection, assist that family in
negotiating a reasonable rent with a dwelling unit
owner. A public housing agency (or such other entity)
shall review the rent for a unit under consideration by
the family (and all rent increases for units under lease
by the family) to determine whether the rent (or rent
increase) requested by the owner is reasonable. If a
public housing agency (or other such entity) determines
that the rent (or rent increase) for a dwelling unit is
not reasonable, the public housing agency (or other such
entity) shall not make housing assistance payments to
the owner under this subsection with respect to that
unit.
``(C) Units exempt from local rent control.--If a
dwelling unit for which a housing assistance payment
contract is established under this subsection is exempt
from local rent control provisions during the term of
that contract, the rent for that unit shall be
reasonable in comparison with other units in the market
area that are exempt from local rent control provisions.
``(D) Timely payments.--Each public housing agency
shall make timely payment of any amounts due to a
dwelling unit owner under this subsection. The housing
assistance payment contract between the owner and the
public
[[Page 112 STAT. 2602]]
housing agency may provide for penalties for the late
payment of amounts due under the contract, which shall
be imposed on the public housing agency in accordance
with generally accepted practices in the local housing
market.
``(E) Penalties.--Unless otherwise authorized by the
Secretary, each public housing agency shall pay any
penalties from administrative fees collected by the
public housing agency, except that no penalty shall be
imposed if the late payment is due to factors that the
Secretary determines are beyond the control of the
public housing agency.
``(11) Leasing of units owned by pha.--If an eligible family
assisted under this subsection leases a dwelling unit (other
than a public housing dwelling unit) that is owned by a public
housing agency administering assistance under this subsection,
the Secretary shall require the unit of general local government
or another entity approved by the Secretary, to make inspections
required under paragraph (8) and rent determinations required
under paragraph (10). The agency shall be responsible for any
expenses of such inspections and determinations.
``(12) Assistance for rental of manufactured
housing.--
``(A) In general.--A public housing agency may make
assistance payments in accordance with this subsection
on behalf of a family that utilizes a manufactured home
as a principal place of residence. Such payments may be
made only for the rental of the real property on which
the manufactured home owned by any such family is
located.
``(B) Rent calculation.--
``(i) Charges included.--For assistance
pursuant to this paragraph, the rent for the space
on which a manufactured home is located and with
respect to which assistance payments are to be
made shall include maintenance and management
charges and tenant-paid utilities.
``(ii) Payment standard.--The public housing
agency shall establish a payment standard for the
purpose of determining the monthly assistance that
may be paid for any family under this paragraph.
The payment standard may not exceed an amount
approved or established by the Secretary.
``(iii) Monthly assistance payment.--The
monthly assistance payment for a family assisted
under this paragraph shall be determined in
accordance with paragraph (2).
``(13) PHA project-based assistance.--
``(A) In general.--If the Secretary enters into an
annual contributions contract under this subsection with
a public housing agency pursuant to which the public
housing agency will enter into a housing assistance
payment contract with respect to an existing structure
under this subsection--
``(i) the housing assistance payment contract
may not be attached to the structure unless the
owner agrees to rehabilitate or newly construct
the structure
[[Page 112 STAT. 2603]]
other than with assistance under this Act, and
otherwise complies with this section; and
``(ii) the public housing agency may approve a
housing assistance payment contract for such
existing structures for not more than 15 percent
of the funding available for tenant-based
assistance administered by the public housing
agency under this section.
``(B) Extension of contract term.--In the case of a
housing assistance payment contract that applies to a
structure under this paragraph, a public housing agency
may enter into a contract with the owner, contingent
upon the future availability of appropriated funds for
the purpose of renewing expiring contracts for
assistance payments, as provided in appropriations Acts,
to extend the term of the underlying housing assistance
payment contract for such period as the Secretary
determines to be appropriate to achieve long-term
affordability of the housing. The contract shall
obligate the owner to have such extensions of the
underlying housing assistance payment contract accepted
by the owner and the successors in interest of the
owner.
``(C) Rent calculation.--For project-based
assistance under this paragraph, housing assistance
payment contracts shall establish rents and provide for
rent adjustments in accordance with subsection (c).
``(D) Adjusted rents.--With respect to rents
adjusted under this paragraph--
``(i) the adjusted rent for any unit shall be
reasonable in comparison with rents charged for
comparable dwelling units in the private,
unassisted, local market; and
``(ii) the provisions of subsection (c)(2)(C)
shall not apply.
``(14) Inapplicability to tenant-based assistance.--
Subsection (c) shall not apply to tenant-based assistance under
this subsection.
``(15) Homeownership option.--
``(A) In general.--A public housing agency providing
assistance under this subsection may, at the option of
the agency, provide assistance for homeownership under
subsection (y).
``(B) Alternative administration.--A public housing
agency may contract with a nonprofit organization to
administer a homeownership program under subsection (y).
``(16) Rental vouchers for relocation of witnesses and
victims of crime.--
``(A) Witnesses.--Of amounts made available for
assistance under this subsection in each fiscal year,
the Secretary, in consultation with the Inspector
General, shall make available such sums as may be
necessary for the relocation of witnesses in connection
with efforts to combat crime in public and assisted
housing pursuant to requests from law enforcement or
prosecution agencies.
``(B) Victims of crime.--
``(i) In general.--Of amounts made available
for assistance under this section in each fiscal
year, the Secretary shall make available such sums
as may be
[[Page 112 STAT. 2604]]
necessary for the relocation of families residing
in public housing who are victims of a crime of
violence (as that term is defined in section 16 of
title 18, United States Code) that has been
reported to an appropriate law enforcement agency.
``(ii) Notice.--A public housing agency that
receives amounts under this subparagraph shall
establish procedures for providing notice of the
availability of that assistance to families that
may be eligible for that assistance.
``(17) Deed restrictions.--Assistance under this subsection
may not be used in any manner that abrogates any local deed
restriction that applies to any housing consisting of 1 to 4
dwelling units. This paragraph may not be construed to affect
the provisions or applicability of the Fair Housing Act.''.
(b) Conforming Amendment.--Section 8(f )(6) of the United States
Housing Act (42 U.S.C. 1437f(f )(6)) is amended by inserting ``or
(o)(13)'' after ``(d)(2)''.
(c) Applicability.--Notwithstanding <<NOTE: 42 USC 1437f note.>> the
amendment made by subsection (a) of this section, any amendments to
section 8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)) that are contained in title II of this Act shall apply with
respect to the provision of assistance under such section during the
period before implementation (pursuant to section 559 of this title) of
such section 8(o) as amended by subsection (a) of this section.
SEC. 546. PUBLIC HOUSING AGENCIES.
Section 3(b)(6) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(6)) is amended to read as follows:
``(6) Public housing agency.--
``(A) In general.--Except as provided in subparagraph (B),
the term `public housing agency' means any State, county,
municipality, or other governmental entity or public body (or
agency or instrumentality thereof) which is authorized to engage
in or assist in the development or operation of public housing.
``(B) Section 8 program.--For purposes of the program for
tenant-based assistance under section 8, such term includes--
``(i) a consortia of public housing agencies that
the Secretary determines has the capacity and capability
to administer a program for assistance under such
section in an efficient manner;
``(ii) any other public or private nonprofit entity
that, upon the effective date under section 503(a) of
the Quality Housing and Work Responsibility Act of 1998,
was administering any program for tenant-based
assistance under section 8 of this Act (as in effect
before the effective date of such Act), pursuant to a
contract with the Secretary or a public housing agency;
and
``(iii) with respect to any area in which no public
housing agency has been organized or where the Secretary
determines that a public housing agency is unwilling or
unable to implement a program for tenant-based
assistance section 8, or is not performing effectively--
[[Page 112 STAT. 2605]]
``(I) the Secretary or another public or
private nonprofit entity that by contract agrees
to receive assistance amounts under section 8 and
enter into housing assistance payments contracts
with owners and perform the other functions of
public housing agency under section 8; or
``(II) notwithstanding any provision of State
or local law, a public housing agency for another
area that contracts with the Secretary to
administer a program for housing assistance under
section 8, without regard to any otherwise
applicable limitations on its area of
operation.''.
SEC. 547. ADMINISTRATIVE FEES.
Subsection (q) of section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f(q)) is amended to read as follows:
``(q) Administrative Fees.--
``(1) Fee for ongoing costs of administration.--
``(A) In general.--The Secretary shall establish
fees for the costs of administering the tenant-based
assistance, certificate, voucher, and moderate
rehabilitation programs under this section.
``(B) Fiscal year 1999.--
``(i) Calculation.--For fiscal year 1999, the
fee for each month for which a dwelling unit is
covered by an assistance contract shall be--
``(I) in the case of a public
housing agency that, on an annual basis,
is administering a program for not more
than 600 dwelling units, 7.65 percent of
the base amount; and
``(II) in the case of an agency
that, on an annual basis, is
administering a program for more than
600 dwelling units (aa) for the first
600 units, 7.65 percent of the base
amount, and (bb) for any additional
dwelling units under the program, 7.0
percent of the base amount.
``(ii) Base amount.--For purposes of this
subparagraph, the base amount shall be the higher
of--
``(I) the fair market rental
established under section 8(c) of this
Act (as in effect immediately before the
effective date under section 503(a) of
the Quality Housing and Work
Responsibility Act of 1998) for fiscal
year 1993 for a 2-bedroom existing
rental dwelling unit in the market area
of the agency, and
``(II) the amount that is the lesser
of (aa) such fair market rental for
fiscal year 1994, or (bb) 103.5 percent
of the amount determined under clause
(i),
adjusted based on changes in wage data or other
objectively measurable data that reflect the costs
of administering the program, as determined by the
Secretary. The Secretary may require that the base
amount be not less than a minimum amount and not
more than a maximum amount.
``(C) Subsequent <<NOTE: Federal Register,
publication. Notice.>> fiscal years.--For subsequent
fiscal years, the Secretary shall publish a notice in
the Federal
[[Page 112 STAT. 2606]]
Register, for each geographic area, establishing the
amount of the fee that would apply for public housing
agencies administering the program, based on changes in
wage data or other objectively measurable data that
reflect the costs of administering the program, as
determined by the Secretary.
``(D) Increase.--The Secretary may increase the fee
if necessary to reflect the higher costs of
administering small programs and programs operating over
large geographic areas.
``(E) Decrease.--The Secretary may decrease the fee
for units owned by a public housing agency to reflect
reasonable costs of administration.
``(2) Fee for preliminary expenses.--The Secretary shall
also establish reasonable fees (as determined by the Secretary)
for--
``(A) the costs of preliminary expenses, in the
amount of $500, for a public housing agency, except that
such fee shall apply to an agency only in the first year
that the agency administers a tenant-based assistance
program under this section, and only if, immediately
before the effective date under section 503(a) of the
Quality Housing and Work Responsibility Act of 1998, the
agency was not administering a tenant-based assistance
program under the United States Housing Act of 1937 (as
in effect immediately before such effective date), in
connection with its initial increment of assistance
received;
``(B) the costs incurred in assisting families who
experience difficulty (as determined by the Secretary)
in obtaining appropriate housing under the programs; and
``(C) extraordinary costs approved by the Secretary.
``(3) Transfer of fees in cases of concurrent geographical
jurisdiction.--In each fiscal year, if any public housing agency
provides tenant-based assistance under this section on behalf of
a family who uses such assistance for a dwelling unit that is
located within the jurisdiction of such agency but is also
within the jurisdiction of another public housing agency, the
Secretary shall take such steps as may be necessary to ensure
that the public housing agency that provides the services for a
family receives all or part of the administrative fee under this
section (as appropriate).
``(4) Applicability.--This subsection shall apply to fiscal
year 1999 and fiscal years thereafter.''.
SEC. 548. LAW ENFORCEMENT AND SECURITY PERSONNEL IN ASSISTED HOUSING.
Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f)
is amended--
(1) by transferring and inserting subsection (z) after
subsection (y) (and before subsection (aa)); and
(2) by adding at the end the following new subsection:
``(cc) Law Enforcement and Security Personnel.--
``(1) In general.--Notwithstanding any other provision of
this Act, in the case of assistance attached to a structure, for
the purpose of increasing security for the residents of a
project, an owner may admit, and assistance under this section
[[Page 112 STAT. 2607]]
may be provided to, police officers and other security personnel
who are not otherwise eligible for assistance under the Act.
``(2) Rent requirements.--With respect to any assistance
provided by an owner under this subsection, the Secretary may--
``(A) permit the owner to establish such rent
requirements and other terms and conditions of occupancy
that the Secretary considers to be appropriate; and
``(B) require the owner to submit an application for
those rent requirements, which application shall include
such information as the Secretary, in the discretion of
the Secretary, determines to be necessary.
``(3) Applicability.--This subsection shall apply to fiscal
year 1999 and fiscal years thereafter.''.
SEC. 549. ADVANCE NOTICE TO TENANTS OF EXPIRATION, TERMINATION, OR OWNER
NONRENEWAL OF ASSISTANCE CONTRACT.
(a) Permanent Applicability of Notice and Endless Lease
Provisions.--
(1) Notice.--Section 8(c) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(c)) is amended--
(A) by striking paragraphs (8) and (10); and
(B) in paragraph (9), by striking the first sentence
and inserting the following new sentence: `` Not less
than one year before terminating any contract under
which assistance payments are received under this
section, other than a contract for tenant-based
assistance under this section, an owner shall provide
written notice to the Secretary and the tenants involved
of the proposed termination, specifying the reasons for
the termination with sufficient detail to enable the
Secretary to evaluate whether the termination is lawful
and whether there are additional actions that can be
taken by the Secretary to avoid the termination.''.
(2) Endless Lease.--Section 8(d)(1)(B) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(B)) is amended--
(A) in clause (ii) by striking ``(ii)'' and all that
follows through ''the owner'' and inserting ``(ii)
during the term of the lease, the owner''; and
(B) in clause (iii), by striking ``(iii)'' and all
that follows through ``any criminal activity'' the first
place it appears and inserting ``(iii) during the term
of the lease, any criminal activity''.
(3) Permanent <<NOTE: 42 USC 1437f note.>> effectiveness of
amendments.--The amendments under this subsection are made on,
and shall apply beginning upon, the date of the enactment of
this Act, and shall apply thereafter, notwithstanding section
203 of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996
(42 U.S.C. 1437f note) or any other provision of law (including
the expiration of the applicability of such section 203 or any
repeal of such section 203).
(b) Exemption of Tenant-Based Assistance From Contract Provisions.--
Paragraph (9) of section 8(c) of the United States Housing Act of 1937
(42 U.S.C. 1437f(c)(9)), as amended by subsection (a)(1) of this
section, is further amended--
(1) by striking ``(9)'' and inserting ``(8)(A)''; and
[[Page 112 STAT. 2608]]
(2) by striking the third sentence and all that follows and
inserting the following:
``(B) In the case of owner who has requested that the Secretary
renew the contract, the owner's notice under subparagraph (A) to the
tenants shall include statements that--
``(i) the owner currently has a contract with the Department
of Housing and Urban Development that pays the Government's
share of the tenant's rent and the date on which the contract
will expire;
``(ii) the owner intends to renew the contract for another
year;
``(iii) renewal of the contract may depend upon the Congress
making funds available for such renewal;
``(iv) the owner is required by law to notify tenants of the
possibility that the contract may not be renewed if Congress
does not provide funding for such renewals;
``(v) in the event of nonrenewal, the Department of Housing
and Urban Development will provide tenant-based rental
assistance to all eligible residents, enabling them to choose
the place they wish to rent; and
``(vi) the notice itself does not indicate an intent to
terminate the contract by either the owner or the Department of
Housing and Urban Development, provided there is Congressional
approval of funding availability.
``(C) Notwithstanding the preceding provisions of this paragraph, if
the owner agrees to a 5-year contract renewal offered by the Secretary,
payments under which shall be subject to the availability of
appropriations for any year, the owner shall provide a written notice to
the Secretary and the tenants not less than 180 days before the
termination of such contract. In the event the owner does not provide
the 180-day notice required in the immediately preceding sentence, the
owner may not evict the tenants or increase the tenants' rent payment
until such time as the owner has provided the 180-day notice and such
period has elapsed. The Secretary may allow the owner to renew the
terminating contract for a period of time sufficient to give tenants 180
days of advance notice under such terms and conditions as the Secretary
may require.
``(D) Any notice under this paragraph shall also comply with any
additional requirements established by the Secretary.
``(E) For purposes of this paragraph, the term `termination' means
the expiration of the assistance contract or an owner's refusal to renew
the assistance contract, and such term shall include termination of the
contract for business reasons.''.
(c) Multifamily Assisted Housing Reform and Affordability Act of
1997.--Section 514(d) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by inserting
at the end the following new sentences: `In addition, if after giving
the notice required in the first sentence, an owner determines to
terminate a contract, an owner shall provide an additional written
notice with respect to the termination, in a form prescribed by the
Secretary, not less than 120 days prior to the termination. In the event
the owner does not provide the 120-day notice required in the preceding
sentence, the owner may not evict the tenants or increase the tenants'
rent payment until such time as the owner has provided the 120-day
notice and such period has elapsed. The Secretary may allow the
[[Page 112 STAT. 2609]]
owner to renew the terminating contract for a period of time sufficient
to give tenants 120 days of advance notice in accordance with section
524 of this Act.''.
SEC. 550. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Lower Income Housing Assistance.--Section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) is amended--
(1) in subsection (a), by striking the second and third
sentences;
(2) in subsection (b)--
(A) in the subsection heading, by striking ``Rental
Certificates and''; and
(B) in the first undesignated paragraph--
(i) by striking ``The Secretary'' and
inserting the following:
``(1) In general.--The Secretary''; and
(ii) by striking the second sentence;
(3) in subsection (c)--
(A) in paragraph (3)--
(i) by striking ``(A)''; and
(ii) by striking subparagraph (B);
(B) in the first sentence of paragraph (4), by
striking ``or by a family that qualifies to receive''
and all that follows through ``1990'';
(C) by striking paragraphs (5) and (7); and
(D) redesignating paragraph (6) as paragraph (5);
(4) in subsection (d)(2)--
(A) in subparagraph (A), by striking the third
sentence and all that follows through the end of the
subparagraph;
(B) in subparagraph (H), by striking ``(H)'' and all
that follows through ``owner'' and inserting ``(H) An
owner''; and
(C) by striking subparagraphs (B) through (E) and
redesignating subparagraphs (F) through (H) (as amended
by subparagraph (B) of this paragraph) as subparagraphs
(B) through (D), respectively;
(5) in subsection (f )(7)--
(A) by striking ``(b) or''; and
(B) by inserting before the period the following:
``and that provides for the eligible family to select
suitable housing and to move to other suitable
housing''; and
(6) by striking subsection ( j);
(7) by striking subsection (n);
(8) in subsection (u)--
(A) in paragraph (2), by striking ``,
certificates''; and
(B) by striking ``certificates or'' each place that
term appears; and
(9) in subsection (x)(2), by striking ``housing certificate
assistance'' and inserting ``tenant-based assistance''.
(b) HOPWA Grants for Community Residences and Services.--Section
861(b)(1)(D) of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12910(b)(1)(D)) is amended by striking ``certificates or
vouchers'' and inserting ``assistance''.
(c) Section 8 Certificates and Vouchers.--Section 931 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437c note)
is amended by striking ``assistance under the certificate and voucher
programs under sections 8(b) and (o) of such Act''
[[Page 112 STAT. 2610]]
and inserting ``tenant-based assistance under section 8 of the United
States Housing Act of 1937''.
(d) Assistance for Displaced Residents.--Section 223(a) of the
Housing and Community Development Act of 1987 (12 U.S.C. 4113(a)) is
amended by striking ``assistance under the certificate and voucher
programs under sections 8(b) and 8(o)'' and inserting ``tenant-based
assistance under section 8''.
(e) Rural Housing Preservation Grants.--Section 533(a) of the
Housing Act of 1949 (42 U.S.C. 1490m(a)) is amended in the second
sentence by striking ``assistance payments as provided by section 8(o)''
and inserting ``tenant-based assistance as provided under section 8''.
(f ) Repeal of Moving to Opportunities for Fair Housing
Demonstration.--Section 152 of the Housing and Community Development Act
of 1992 (42 U.S.C. 1437f note) is repealed.
(g) Assistance for Troubled Multifamily Housing Projects.--Section
201(m)(2)(A) of the Housing and Community Development Amendments of 1978
(12 U.S.C. 1715z-1a(m)(2)(A)) is amended by striking ``section 8(b)(1)''
and inserting ``section 8''.
SEC. 551. FUNDING AND ALLOCATION.
Section 213 of the Housing and Community Development Act of 1974 (42
U.S.C. 1439) is amended--
(1) by striking subsection (c); and
(2) in subsection (d)--
(A) in paragraph (1)(A)--
(i) in clause (i), by adding at the end the
following new sentence: ``Amounts for tenant-based
assistance under section 8(o) of the United States
Housing Act of 1937 may not be provided to any
public housing agency that has been disqualified
from providing such assistance.''; and
(ii) in clause (ii), by striking ``8(b)(1)''
each place it appears and inserting ``8(o)'';
(B) by striking paragraph (2); and
(C) by redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively.
SEC. 552. TREATMENT OF COMMON AREAS.
Section 8(d) of the United States Housing Act of 1937 (42 U.S.C.
1437f(d)), as amended by the preceding provisions of this Act, is
further amended by adding at the end the following new paragraph:
``(6) Treatment of common areas.--The Secretary may not provide any
assistance amounts pursuant to an existing contract for project-based
assistance under this section for a housing project and may not enter
into a new or renewal contract for such assistance for a project unless
the owner of the project provides consent, to such local law enforcement
agencies as the Secretary determines appropriate, for law enforcement
officers of such agencies to enter common areas of the project at any
time and without advance notice upon a determination of probable cause
by such officers that criminal activity is taking place in such
areas.''.
SEC. 553. PORTABILITY.
Section 8(r) of the United States Housing Act of 1937 (42 U.S.C.
1437f(r)) is amended--
(1) in paragraph (2), by striking the last sentence;
[[Page 112 STAT. 2611]]
(2) in paragraph (3))--
(A) by striking ``(b) or''; and
(B) <<NOTE: Procedures.>> by adding at the end the
following: ``The Secretary shall establish procedures
for the compensation of public housing agencies that
issue vouchers to families that move into or out of the
jurisdiction of the public housing agency under
portability procedures. The Secretary may reserve
amounts available for assistance under subsection (o) to
compensate those public housing agencies.'';
(3) by striking ``(r)'' and all that follows through the end
of paragraph (1) and inserting the following:
``(r) Portability.--(1) In general.--(A) Any family receiving
tenant-based assistance under subsection (o) may receive such assistance
to rent an eligible dwelling unit if the dwelling unit to which the
family moves is within any area in which a program is being administered
under this section.
``(B)(i) Notwithstanding subparagraph (A) and subject to any
exceptions established under clause (ii) of this subparagraph, a public
housing agency may require that any family not living within the
jurisdiction of the public housing agency at the time the family applies
for assistance from the agency shall, during the 12-month period
beginning on the date of initial receipt of housing assistance made
available on behalf of the family from such agency, lease and occupy an
eligible dwelling unit located within the jurisdiction served by the
agency.
``(ii) The Secretary may establish such exceptions to the authority
of public housing agencies established under clause (i).''; and
(5) by adding at the end the following new paragraph:
``(5) Lease violations.--A family may not receive a voucher from a
public housing agency and move to another jurisdiction under the tenant-
based assistance program if the family has moved out of the assisted
dwelling unit of the family in violation of a lease.''.
SEC. 554. <<NOTE: 42 USC 1437f note.>> LEASING TO VOUCHER HOLDERS.
Notwithstanding section 203(d) of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996 (as contained in section 101(e) of the Omnibus
Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-
134; 42 U.S.C. 1437f note)), section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f) is amended by striking subsection
(t). <<NOTE: Applicability.>> This section shall apply beginning upon,
and the amendment made by this section is made on, and shall apply
beginning upon, the date of the enactment of this Act.
SEC. 555. HOMEOWNERSHIP OPTION.
(a) In general.--Section 8(y) of the United States Housing Act of
1937 (42 U.S.C. 1437f(y)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``A family receiving'' and all that follows
through ``if the family'' and inserting the following:
``A public housing agency providing tenant-based
assistance on behalf of an eligible family under this
section may provide assistance for an eligible family
that purchases a dwelling unit (including a unit under a
lease-purchase agreement) that will
[[Page 112 STAT. 2612]]
be owned by 1 or more members of the family, and will be
occupied by the family, if the family'';
(B) in subparagraph (A), by inserting before the
semicolon ``, or owns or is acquiring shares in a
cooperative''; and
(C) in subparagraph (B)--
(i) by striking ``(i) participates'' and all
that follows through ``(ii) demonstrates'' and
inserting ``demonstrates''; and
(ii) by inserting ``, except that the
Secretary may provide for the consideration of
public assistance in the case of an elderly family
or a disabled family'' after ``other than public
assistance'';
(2) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Determination of amount of assistance.--
``(A) Monthly expenses not exceeding payment
standard.--If the monthly homeownership expenses, as
determined in accordance with requirements established
by the Secretary, do not exceed the payment standard,
the monthly assistance payment shall be the amount by
which the homeownership expenses exceed the highest of
the following amounts, rounded to the nearest dollar:
``(i) 30 percent of the monthly adjusted
income of the family.
``(ii) 10 percent of the monthly income of the
family.
``(iii) If the family is receiving payments
for welfare assistance from a public agency, and a
portion of those payments, adjusted in accordance
with the actual housing costs of the family, is
specifically designated by that agency to meet the
housing costs of the family, the portion of those
payments that is so designated.
``(B) Monthly expenses exceed payment standard.--If
the monthly homeownership expenses, as determined in
accordance with requirements established by the
Secretary, exceed the payment standard, the monthly
assistance payment shall be the amount by which the
applicable payment standard exceeds the highest of the
amounts under clauses (i), (ii), and (iii) of
subparagraph (A).'';
(3) by striking paragraphs (3), (4), and (5) and inserting
the following new paragraphs:
``(3) Inspections and contract conditions.--
``(A) In general.--Each contract for the purchase of
a unit to be assisted under this section shall--
``(i) provide for pre-purchase inspection of
the unit by an independent professional; and
``(ii) require that any cost of necessary
repairs be paid by the seller.
``(B) Annual inspections not required.--The
requirement under subsection (o)(8)(A)(ii) for annual
inspections shall not apply to units assisted under this
section.
``(4) Other authority of the secretary.--The Secretary may--
``(A) limit the term of assistance for a family
assisted under this subsection; and
[[Page 112 STAT. 2613]]
``(B) modify the requirements of this subsection as
the Secretary determines to be necessary to make
appropriate adaptations for lease-purchase
agreements.''; and
(4) by redesignating paragraphs (6), (7) (as previously
amended by this Act), and (8) as paragraphs (5), (6), and (7),
respectively.
(b) Demonstration <<NOTE: 42 USC 1437f note.>> Program.--
(1) In general.--With the consent of the affected public
housing agencies, the Secretary may carry out (or contract with
1 or more entities to carry out) a demonstration program under
section 8(y) of the United States Housing Act of 1937 (42 U.S.C.
1437f(y)) to expand homeownership opportunities for low-income
families.
(2) Report.--The Secretary shall report annually to Congress
on activities conducted under this subsection.
(c) Applicability.--This <<NOTE: Effective date. 42 USC 1437f
note.>> section shall take effect on, and the amendments made by this
section are made on, and shall apply beginning upon, the date of the
enactment of this Act.
SEC. 556. RENEWALS.
(a) In General.--Section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new subsection:
``(dd) Tenant-Based Contract Renewals.--Subject to amounts provided
in appropriation Acts, starting in fiscal year 1999, the Secretary shall
renew all expiring tenant-based annual contribution contracts under this
section by applying an inflation factor based on local or regional
factors to an allocation baseline. The allocation baseline shall be
calculated by including, at a minimum, amounts sufficient to ensure
continued assistance for the actual number of families assisted as of
October 1, 1997, with appropriate upward adjustments for incremental
assistance and additional families authorized subsequent to that
date.''.
(b) Implementation.--The <<NOTE: Notice. Deadline. Regulations. 42
USC 1437f note.>> Secretary of Housing and Urban Development shall
implement the provision added by the amendment made by subsection (a)
through notice, not later than December 31, 1998, and shall issue final
regulations which shall be developed pursuant to the procedures for
issuance of regulations under the negotiated rulemaking procedure under
subchapter III of chapter 5 of title 5, United States Code, not later
than one year after the date of the enactment of this Act.
SEC. 557. MANUFACTURED HOUSING DEMONSTRATION PROGRAM.
(a) In General.--The Secretary of Housing and Urban Development
shall carry out a program during fiscal years 1999, 2000, and 2001 to
demonstrate the effectiveness of providing, directly to eligible
families that own manufactured homes and rent real property on which
their homes are located, tenant-based assistance for the rental of such
property that would otherwise be provided directly to the owners of such
real property under section 8(o)(12) of the United States Housing Act of
1937.
(b) Requirements.--The demonstration program under this section
shall be subject to the following requirements:
(1) Scope.--The Secretary of Housing and Urban Development
shall carry out the demonstration program with respect
[[Page 112 STAT. 2614]]
to the Housing Authority of the County of San Diego, in
California, and the Housing Authority of the City of San Diego,
in California.
(2) Eligible families.--Under the demonstration program,
each public housing agency shall provide tenant-based assistance
under section 8(o) of the United States Housing Act of 1937 on
behalf of eligible families who rent real property on which
their manufactured homes are located and which is owned by an
owner who has refused to participate in the section 8 program.
(3) Participation arrangements.--Each public housing agency
participating in the demonstration program shall enter into
arrangements with families assisted under the program providing
for their participation in the program and may, to the extent
authorized by the Secretary, continue to provide assistance in
the same manner as under the demonstration program after its
conclusion to such participating families.
(4) Waiver of other requirements.--Under the demonstration
program, the Secretary may waive, or specify alternative
requirements for, requirements established by or under section 8
of the United States Housing Act of 1937 relating to the
provision of assistance under subsection ( j) or (o)(12) of such
section.
(c) Report.--Not <<NOTE: Deadline.>> later than March 31, 2002, the
Secretary shall submit a report to the Congress describing and
evaluating the demonstration program under this section.
(d) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 558. AUTHORIZATIONS OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated for
providing public housing agencies with tenant-based housing assistance
under section 8 of the United States Housing Act of 1937--
(1) to provide amounts for incremental assistance under such
section 8--
(A) for each of fiscal years 2000 and 2001, the
amount necessary to assist 100,000 incremental dwelling
units in each such fiscal year; and
(B) for each of fiscal years 1999, 2002, and 2003,
such sums as may be necessary; and
(2) such sums as may be necessary for each of fiscal years
1999, 2000, 2001, 2002, and 2003, for--
(A) relocation and replacement housing for units
that are demolished and disposed of from the public
housing inventory (in addition to other amounts that may
be available for such purposes);
(B) relocation of residents of properties that are
owned by the Secretary and being disposed of or that are
discontinuing section 8 project-based assistance;
(C) the conversion of section 23 projects to
assistance under section 8;
(D) carrying out the family unification program;
(E) relocation of witnesses in connection with
efforts to combat crime in public and assisted housing
pursuant to a request from a law enforcement or
prosecution agency;
(F) nonelderly disabled families affected by the
designation of a public housing development under
section
[[Page 112 STAT. 2615]]
7 of the United States Housing Act of 1937, the
establishment of preferences in accordance with section
651 of the Housing and Community Development Act of
1992, or the restriction of occupancy to elderly
families in accordance with section 658 of such Act, and
to the extent the Secretary determines that such amount
is not needed to fund applications for such affected
families, to other nonelderly disabled families;
(G) housing vouchers for homeless individuals; and
(H) housing vouchers to compensate public housing
agencies which issue vouchers to families that move into
or out of the jurisdiction of the agency under
portability procedures.
(b) Assistance for Disabled Families.--
(1) Authorization of appropriations.--There is authorized to
be appropriated, for tenant-based assistance under section 8 of
the United States Housing Act of 1937, to be used in accordance
with paragraph (2), $50,000,000 for fiscal year 2000, and such
sums as may be necessary for each subsequent fiscal year.
(2) Use.--The Secretary shall provide amounts made available
under paragraph (1) to public housing agencies only for use to
provide tenant-based assistance under section 8 of the United
States Housing Act of 1937 for nonelderly disabled families
(including such families relocating pursuant to designation of a
public housing development under 7 of such Act or to the
establishment of occupancy restrictions in accordance with
section 658 of the Housing and Community Development Act of
1992, and other nonelderly disabled families who have applied to
the agency for assistance under such section 8).
(3) Allocation of amounts.--The Secretary shall allocate and
provide amounts made available under paragraph (1) to public
housing agencies as the Secretary determines appropriate based
on the relative levels of need among the authorities for
assistance for families described in paragraph (1).
(c) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 559. <<NOTE: 42 USC 1437f note.>> RULEMAKING AND IMPLEMENTATION.
(a) Interim Regulations.--The Secretary of Housing and Urban
Development shall issue such interim regulations as may be necessary to
implement the amendments made by this subtitle and other provisions in
this title which relate to section 8(o) of the United States Housing Act
of 1937.
(b) Final <<NOTE: Deadline.>> Regulations.--The Secretary shall
issue final regulations necessary to implement the amendments made by
this subtitle and other provisions in this title which relate to section
8(o) of the United States Housing Act of 1937 not later then 1 year
after the date of the enactment of this Act.
(c) Factors For Consideration.--Before the publication of the final
regulations under subsection (b), in addition to public comments invited
in connection with the publication of the interim rule, the Secretary
shall--
(1) seek recommendations on the implementation of sections
8(o)(6)(B), 8(o)(7)(B), and 8(o)(10)(D) of the United States
Housing Act of 1937 and of renewals of expiring tenant-based
assistance from organizations representing--
[[Page 112 STAT. 2616]]
(A) State or local public housing agencies;
(B) owners and managers of tenant-based housing
assisted under section 8 of the United States Housing
Act of 1937;
(C) families receiving tenant-based assistance under
section 8 of the United States Housing Act of 1937; and
(D) legal service organizations; and
(2) <<NOTE: Public information.>> convene not less than 2
public forums at which the persons or organizations making
recommendations under paragraph (1) may express views concerning
the proposed disposition of the recommendations.
(d) Conversion Assistance.--
(1) In general.--The Secretary may provide for the
conversion of assistance under the certificate and voucher
programs under subsections (b) and (o) of section 8 of the
United States Housing Act of 1937, as in effect before the
applicability of the amendments made by this subtitle, to the
voucher program established by the amendments made by this
subtitle.
(2) Continued applicability.--The Secretary may apply the
provisions of the United States Housing Act of 1937, or any
other provision of law amended by this subtitle, as those
provisions were in effect immediately before the date of the
enactment of this Act (except that such provisions shall be
subject to any amendments to such provisions that may be
contained in title II of this Act), to assistance obligated by
the Secretary before October 1, 1999, for the certificate or
voucher program under section 8 of the United States Housing Act
of 1937, if the Secretary determines that such action is
necessary for simplification of program administration,
avoidance of hardship, or other good cause.
(e) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
Subtitle D--Home Rule Flexible Grant Demonstration
SEC. 561. HOME RULE FLEXIBLE GRANT DEMONSTRATION PROGRAM.
The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is
amended by adding at the end the following new title:
``TITLE IV--HOME RULE FLEXIBLE GRANT DEMONSTRATION
``SEC. 401. <<NOTE: 42 USC 1437bbb.>> PURPOSE.
The purpose of this title is to demonstrate the effectiveness of
authorizing local governments and municipalities, in coordination with
the public housing agencies for such jurisdictions--
``(1) to receive and combine program allocations of covered
housing assistance; and
``(2) to design creative approaches for providing and
administering Federal housing assistance based on the particular
needs of the jurisdictions that--
``(A) provide incentives to low-income families with
children whose head of the household is employed,
seeking
[[Page 112 STAT. 2617]]
employment, or preparing for employment by participating
in a job training or educational program, or any program
that otherwise assists individuals in obtaining
employment and attaining economic self-sufficiency;
``(B) reduce costs of Federal housing assistance and
achieve greater cost-effectiveness in Federal housing
assistance expenditures;
``(C) increase the stock of affordable housing and
housing choices for low-income families;
``(D) increase homeownership among low-income
families;
``(E) reduce geographic concentration of assisted
families;
``(F) reduce homelessness through providing
permanent housing solutions;
``(G) improve program management; and
``(H) achieve such other purposes with respect to
low-income families, as determined by the participating
local governments and municipalities in coordination
with the public housing agencies;
``SEC. 402. <<NOTE: 42 USC 1437bbb-1.>> FLEXIBLE GRANT PROGRAM.
``(a) Authority and Use.--The Secretary shall carry out a
demonstration program in accordance with the purposes under section 401
and the provisions of this title. A jurisdiction approved by the
Secretary for participation in the program may receive and combine and
enter into performance-based contracts for the use of amounts of covered
housing assistance, in the manner determined appropriate by the
participating jurisdiction, during the period of the jurisdiction's
participation--
``(1) to provide housing assistance and services for low-
income families in a manner that facilitates the transition of
such families to work;
``(2) to reduce homelessness through providing permanent
housing solutions;
``(3) to increase homeownership among low-income families;
or
``(4) for other housing purposes for low-income families
determined by the participating jurisdiction.
``(b) Period of Participation.--A jurisdiction may participate in
the demonstration program under this title for a period consisting of
not less than 1 nor more than 5 fiscal years.
``(c) Participating Jurisdictions.--
``(1) In general.--Subject to paragraph (2), during
the 4-year period consisting of fiscal years 1999
through 2002, the Secretary may approve for
participation in the program under this title not more
than an aggregate of 100 jurisdictions over the entire
term of the demonstration program. A jurisdiction that
was approved for participation in the demonstration
program under this title in a fiscal year and that is
continuing such participation in any subsequent fiscal
year shall count as a single jurisdiction for purposes
of the numerical limitation under this paragraph.
``(2) Exclusion of high performing agencies.--
Notwithstanding any other provision of this title other than
paragraph
[[Page 112 STAT. 2618]]
(4) of this subsection, the Secretary may approve for
participation in the demonstration program under this title only
jurisdictions served by public housing agencies that--
``(A) are not designated as high-performing
agencies, pursuant to their most recent scores under the
public housing management assessment program under
section 6( j)(2) (or any successor assessment program
for public housing agencies), as of the time of
approval; and
``(B) have a most recent score under the public
housing management assessment program under section 6(
j)(2) (or any successor assessment program for public
housing agencies), as of the time of approval, that is
among the lowest 40 percent of the scores of all
agencies.
``(3) Limitation on troubled and non-troubled phas.--Of the
jurisdictions approved by the Secretary for participation in the
demonstration program under this title--
``(A) not more than 55 may be jurisdictions served
by a public housing agency that, at the time of
approval, is designated as a troubled agency under the
public housing management assessment program under
section 6( j)(2) (or any successor assessment program
for public housing agencies); and
``(B) not more than 45 may be jurisdictions served
by a public housing agency that, at the time of
approval, is not designated as a troubled agency under
the public housing management assessment program under
section 6( j)(2) (or any successor assessment program
for public housing agencies).
``(4) Exception.--If <<NOTE: Indiana.>> the City of
Indianapolis, Indiana submits an application for participation
in the program under this title and, upon review of the
application under section 406(b), the Secretary determines that
such application is approvable under this title, the Secretary
shall approve such application, notwithstanding the second
sentence of section 406(b)(2). Such City shall count for
purposes of the numerical limitations on jurisdictions under
paragraphs (1) and (3) of section 402(c), but the provisions of
section 402(c)(2) (relating to exclusion of high-performing
agencies) shall not apply to such City.
``SEC. 403. <<NOTE: 42 USC 1437bbb-2.>> PROGRAM ALLOCATION AND COVERED
HOUSING ASSISTANCE.
``(a) Program Allocation.--In each fiscal year, the amount made
available to each participating jurisdiction under the demonstration
program under this title shall be equal to the sum of the amounts of
covered housing assistance that would otherwise be made available under
the provisions of this Act to the public housing agency for the
jurisdiction.
``(b) Covered Housing Assistance.--For purposes of this title, the
term `covered housing assistance' means--
``(1) operating assistance under section 9 (as in effect
before the effective date under section 503(a) of the Quality
Housing and Work Responsibility Act of 1998);
``(2) modernization assistance under section 14 (as in
effect before the effective date under section 503(a) of the
Quality Housing and Work Responsibility Act of 1998);
[[Page 112 STAT. 2619]]
``(3) assistance for the certificate and voucher programs
under section 8 (as in effect before the effective date under
section 503(a) of the Quality Housing and Work Responsibility
Act of 1998);
``(4) assistance from the Operating Fund under section 9(e);
``(5) assistance from the Capital Fund under section 9(d);
and
``(6) tenant-based assistance under section 8 (as amended by
the Quality Housing and Work Responsibility Act of 1998).
``SEC. 404. <<NOTE: 42 USC 1437bbb-3.>> APPLICABILITY OF REQUIREMENTS
UNDER PROGRAMS FOR COVERED HOUSING ASSISTANCE.
``(a) In General.--In each fiscal year of the demonstration program
under this title, amounts made available to a participating jurisdiction
under the demonstration program shall be subject to the same terms and
conditions as such amounts would be subject to if made available under
the provisions of this Act pursuant to which covered housing assistance
is otherwise made available under this Act to the public housing agency
for the jurisdiction, except that--
``(1) the Secretary may waive any such term or condition
identified by the jurisdiction to the extent that the Secretary
determines such action to be appropriate to carry out the
purposes of the demonstration program under this title; and
``(2) the participating jurisdiction may combine the amounts
made available and use the amounts for any activity eligible
under the programs under sections 8 and 9.
``(b) Number of Families Assisted.--In carrying out the
demonstration program under this title, each participating jurisdiction
shall assist substantially the same total number of eligible low-income
families as would have otherwise been served by the public housing
agency for the jurisdiction had the jurisdiction not participated in the
demonstration program under this title.
``(c) Protection of Recipients.--This title may not be construed to
authorize the termination of assistance to any recipient receiving
assistance under this Act before the date of the enactment of this title
as a result of the implementation of the demonstration program under
this title.
``(d) Effect on Ability To Compete for Other Programs.--This title
may not be construed to affect the ability of any applying or
participating jurisdiction (or a public housing agency for any such
jurisdiction) to compete or otherwise apply for or receive assistance
under any other housing assistance program administered by the
Secretary.
``SEC. 405. <<NOTE: 42 USC 1437bbb-4.>> PROGRAM REQUIREMENTS.
``(a) Applicability of Certain Provisions.--Notwithstanding section
404(a)(1), the Secretary may not waive, with respect to any
participating jurisdiction, any of the following provisions:
``(1) The first sentence of paragraph (1) of section 3(a)
(relating to eligibility of low-income families).
``(2) Section 16 (relating to income eligibility and
targeting of assistance).
``(3) Paragraph (2) of section 3(a) (relating to rental
payments for public housing families).
[[Page 112 STAT. 2620]]
``(4) Paragraphs (2) and (3) of section 8(o) (to the extent
such paragraphs limit the amount of rent paid by families
assisted with tenant-based assistance).
``(5) Section 18 (relating to demolition or disposition of
public housing).
``(b) Compliance With Assistance Plan.--A participating jurisdiction
shall provide assistance using amounts received pursuant to this title
in the manner set forth in the plan of the jurisdiction approved by the
Secretary under section 406(a)(2).
``SEC. 406. <<NOTE: 42 USC 1437bbb-5.>> APPLICATION.
``(a) In General.--The Secretary shall provide for jurisdictions to
submit applications for approval to participate in the demonstration
program under this title. An application--
``(1) shall be submitted only after the jurisdiction
provides for citizen participation through a public hearing and,
if appropriate, other means;
``(2) shall include a plan for the provision of housing
assistance with amounts received pursuant to this title that--
``(A) is developed by the jurisdiction;
``(B) takes into consideration comments from the
public hearing, any other public comments on the
proposed program, and comments from current and
prospective residents who would be affected; and
``(C) identifies each term or condition for which
the jurisdiction is requesting waiver under section 404
(a)(1);
``(3) shall describe how the plan for use of amounts will
assist in meeting the purposes of, and be used in accordance
with, sections 401 and 402(a), respectively;
``(4) shall propose standards for measuring performance in
using assistance provided pursuant to this title based on the
performance standards under subsection (b)(4);
``(5) shall propose the length of the period for
participation of the jurisdiction is in the demonstration
program under this title;
``(6) shall--
``(A) in the case of the application of any
jurisdiction within whose boundaries are areas subject
to any other unit of general local government, include
the signed consent of the appropriate executive official
of such unit to the application; and
``(B) in the case of the application of a consortia
of units of general local government (as provided under
section 409(1)(B)), include the signed consent of the
appropriate executive officials of each unit included in
the consortia;
``(7) shall include information sufficient, in the
determination of the Secretary--
``(A) to demonstrate that the jurisdiction has or
will have management and administrative capacity
sufficient to carry out the plan under paragraph (2),
including a demonstration that the applicant has a
history of effectively administering amounts provided
under other programs of the Department of Housing and
Urban Development, such as the community development
block grant program, the
[[Page 112 STAT. 2621]]
HOME investment partnerships program, and the programs
for assistance for the homeless under the Stewart B.
McKinney Homeless Assistance Act;
``(B) to demonstrate that carrying out the plan will
not result in excessive duplication of administrative
efforts and costs, particularly with respect to
activities performed by public housing agencies
operating within the boundaries of the jurisdiction;
``(C) to describe the function and activities to be
carried out by such public housing agencies affected by
the plan; and
``(D) to demonstrate that the amounts received by
the jurisdiction will be maintained separate from other
funds available to the jurisdiction and will be used
only to carry out the plan;
``(8) shall include information describing how the
jurisdiction will make decisions regarding asset management of
housing for low-income families under programs for covered
housing assistance or assisted with grant amounts under this
title;
``(9) shall--
``(A) clearly identify any State or local laws that
will affect implementation of the plan under paragraph
(2) and any contractual rights and property interests
that may be affected by the plan;
``(B) describe how the plan will be carried out with
respect to such laws, rights, and interests; and
``(C) contain a legal memorandum sufficient to
describe how the plan will comply with such laws and how
the plan will be carried out without violating or
impairing such rights and interests; and
``(10) shall identify procedures for how the jurisdiction
shall return to providing covered assistance for the
jurisdiction under the provisions of title I, in the case of
determination under subsection (b)(4)(B).
A plan required under paragraph (2) to be included in the application
may be contained in a memorandum of agreement or other document executed
by a jurisdiction and public housing agency, if such document is
submitted together with the application.
``(b) Review, Approval, and Performance Standards.--
``(1) Review.--
The <<NOTE: Notification. Deadlines.>> Secretary shall review
each application for participation in the demonstration program
under this title and shall determine and notify the jurisdiction
submitting the application, not later than 90 days after its
submission, of whether the application is approvable under this
title. If the Secretary determines that the application of a
jurisdiction is approvable under this title, the Secretary shall
provide affected public housing agencies an opportunity to
review and to provide written comments on the application for a
period of not less than 30 days after notification under the
preceding sentence. If the Secretary determines that an
application is not approvable under this title, the Secretary
shall notify the jurisdiction submitting the application of the
reasons for such determination. <<NOTE: Public
information.>> Upon making a determination of whether an
application is approvable or nonapprovable under this title, the
Secretary shall make such determination publicly available in
writing together with a written statement of the reasons for
such determination.
[[Page 112 STAT. 2622]]
``(2) Approval.--The Secretary may approve jurisdictions for
participation in the demonstration program under this title, but
only from among applications that the Secretary has determined
under paragraph are approvable under this title and only in
accordance with section 402(c). The Secretary shall base the
selection of jurisdictions to approve on the potential success,
as evidenced by the application, in--
``(A) achieving the goals set forth in the
performance standards under paragraph (4)(A); and
``(B) increasing housing choices for low-income
families.
``(3) Agreement.--The Secretary shall offer to enter into an
agreement with each jurisdiction approved for participation in
the program under this title providing for assistance pursuant
to this title for a period in accordance with section 402(b) and
incorporating a requirement that the jurisdiction achieve a
particular level of performance in each of the areas for which
performance standards are established under paragraph (4)(A) of
this subsection. If the Secretary and the jurisdiction enter
into an agreement, the Secretary shall provide any covered
housing assistance for the jurisdiction in the manner authorized
under this title. The Secretary may not provide covered housing
assistance for a jurisdiction in the manner authorized under
this title unless the Secretary and jurisdiction enter into an
agreement under this paragraph.
``(4) Performance standards.--
``(A) Establishment.--The Secretary and each
participating jurisdiction may collectively establish
standards for evaluating the performance of the
participating jurisdiction in meeting the purposes under
section 401 of this title, which may include standards
for--
``(i) moving dependent low-income families to
economic self-sufficiency;
``(ii) reducing the per-family cost of
providing housing assistance;
``(iii) expanding the stock of affordable
housing and housing choices for low-income
families;
``(iv) improving program management;
``(v) increasing the number of homeownership
opportunities for low-income families;
``(vi) reducing homelessness through providing
permanent housing resources;
``(vii) reducing geographic concentration of
assisted families; and
``(viii) any other performance goals that the
Secretary and the participating jurisdiction may
establish.
``(B) Failure to comply.--If, at any time during the
participation of a jurisdiction in the program under
this title, the Secretary determines that the
jurisdiction is not sufficiently meeting, or making
progress toward meeting, the levels of performance
incorporated into the agreement of the jurisdiction
pursuant to subparagraph (A), the Secretary shall
terminate the participation of the jurisdiction in the
program under this title and require the implementation
of the procedures included in the application of the
jurisdiction pursuant to subsection (a)(10).
``(5) Troubled agencies.--The Secretary may establish
requirements for the approval of applications under this section
[[Page 112 STAT. 2623]]
submitted by public housing agencies designated under section 6(
j)(2) as troubled, which may include additional or different
criteria determined by the Secretary to be more appropriate for
such agencies.
``(c) Status of PHAs.--This title may not be construed to require
any change in the legal status of any public housing agency or in any
legal relationship between a jurisdiction and a public housing agency as
a condition of participation in the program under this title.
``(d) PHA Plans.--In carrying out this title, the Secretary may
provide for a streamlined public housing agency plan and planning
process under section 5A for participating jurisdictions.
``SEC. 407. <<NOTE: 42 USC 1437bbb-6.>> TRAINING.
``The Secretary, in consultation with representatives of public and
assisted housing interests, may provide training and technical
assistance relating to providing assistance under this title and may
conduct detailed evaluations of up to 30 jurisdictions for the purpose
of identifying replicable program models that are successful at carrying
out the purposes of this title.
``SEC. 408. <<NOTE: 42 USC 1437bbb-7.>> ACCOUNTABILITY.
``(a) Maintenance of Records.--Each participating jurisdiction shall
maintain such records as the Secretary may require to--
``(1) document the amounts received by the jurisdiction
under this Act and the disposition of such amounts under the
demonstration program under this title;
``(2) ensure compliance by the jurisdiction with this title;
and
``(3) evaluate the performance of the jurisdiction under the
demonstration program under this title.
``(b) Reports.--Each participating jurisdiction shall annually
submit to the Secretary a report in a form and at a time specified by
the Secretary, which shall include--
``(1) documentation of the use of amounts made available to
the jurisdiction under this title;
``(2) any information as the Secretary may request to assist
the Secretary in evaluating the demonstration program under this
title; and
``(3) a description and analysis of the effect of assisted
activities in addressing the objectives of the demonstration
program under this title.
``(c) Access To Documents By Secretary and Comptroller General.--The
Secretary and the Comptroller General of the United States, or any duly
authorized representative of the Secretary or the Comptroller General,
shall have access for the purpose of audit and examination to any books,
documents, papers, and records maintained by a participating
jurisdiction that relate to the demonstration program under this title.
``(d) Performance Review and Evaluation.--
``(1) Performance review.--Based on the performance
standards established under section 406(b)(4), the Secretary
shall monitor the performance of participating jurisdictions in
providing assistance under this title.
``(2) Status report.--Not <<NOTE: Deadline.>> later than 60
days after the conclusion of the second year of the
demonstration program under this title, the Secretary shall
submit to Congress an
[[Page 112 STAT. 2624]]
interim report on the status of the demonstration program and
the progress each participating jurisdiction in achieving the
purposes of the demonstration program under section 401.
``SEC. 409. <<NOTE: 42 USC 1437bbb-8.>> DEFINITIONS.
``For purposes of this title, the following definitions shall apply:
``(1) Jurisdiction.--The term `jurisdiction' means--
``(A) a unit of general local government (as such
term is defined in section 104 of the Cranston-Gonzalez
National Affordable Housing Act) that has boundaries,
for purposes of carrying out this title, that--
``(i) wholly contain the area within which a
public housing agency is authorized to operate;
and
``(ii) do not contain any areas contained
within the boundaries of any other participating
jurisdiction; and
``(B) a consortia of such units of general local
government, organized for purposes of this title.
``(2) Participating jurisdiction.--The term `participating
jurisdiction' means, with respect to a period for which such an
agreement is made, a jurisdiction that has entered into an
agreement under section 406(b)(3) to receive assistance pursuant
to this title for such fiscal year.
``SEC. 410. <<NOTE: 42 USC 1437bbb-9.>> TERMINATION AND EVALUATION.
``(a) Termination.--The demonstration program under this title shall
terminate not less than 2 and not more than 5 years after the date on
which the demonstration program is commenced.
``(b) Evaluation.--Not <<NOTE: Deadline. Reports.>> later than 6
months after the termination of the demonstration program under this
title, the Secretary shall submit to the Congress a final report, which
shall include--
``(1) an evaluation the effectiveness of the activities
carried out under the demonstration program; and
``(2) any findings and recommendations of the Secretary for
any appropriate legislative action.
``SEC. 411. <<NOTE: 42 USC 1437bbb note.>> APPLICABILITY.
``This title shall take effect on the date of the enactment of the
Quality Housing and Work Responsibility Act of 1998.''.
Subtitle E--Accountability and Oversight of Public Housing Agencies
SEC. 563. <<NOTE: 42 USC 1437d note.>> STUDY OF ALTERNATIVE METHODS FOR
EVALUATING PUBLIC HOUSING AGENCIES.
(a) In General.--The Secretary of Housing and Urban Development
shall provide under subsection (e) for a study to be conducted to
determine the effectiveness of various alternative methods of evaluating
the performance of public housing agencies and other providers of
federally assisted housing.
(b) Purposes.--The purposes of the study under this section shall
be--
(1) to identify and examine various methods of evaluating
and improving the performance of public housing agencies in
[[Page 112 STAT. 2625]]
administering public housing and tenant-based rental assistance
programs and of other providers of federally assisted housing,
which are alternatives to oversight by the Department of Housing
and Urban Development; and
(2) to identify specific monitoring and oversight activities
currently conducted by the Department of Housing and Urban
Development and to evaluate whether such activities should be
eliminated, expanded, modified, or transferred to other entities
(including governmental and private entities) to increase
accuracy and effectiveness and improve monitoring.
(c) Evaluation of Various Performance Evaluation Systems.--To carry
out the purposes under subsection (b), the study under this section
shall identify, and analyze the advantages and disadvantages of various
methods of regulating and evaluating the performance of public housing
agencies and other providers of federally assisted housing, including
the following methods:
(1) Current system.--The system pursuant to the United
States Housing Act of 1937, including the methods and
requirements under such system for reporting, auditing,
reviewing, sanctioning, and monitoring of such agencies and
housing providers and the public housing management assessment
program pursuant to section 6( j) of the United States Housing
Act of 1937.
(2) Accreditation models.--Various models that are based
upon accreditation of such agencies and housing providers,
subject to the following requirements:
(A) The study shall identify and analyze various
models used in other industries and professions for
accreditation and determine the extent of their
applicability to the programs for public housing and
federally assisted housing.
(B) If any accreditation models are determined to be
applicable to the public and federally assisted housing
programs, the study shall identify appropriate goals,
objectives, and procedures for an accreditation program
for such agencies and housing providers.
(C) The study shall evaluate the feasibility and
merit of establishing an independent accreditation and
evaluation entity to assist, supplement, or replace the
role of the Department of Housing and Urban Development
in assessing and monitoring the performance of such
agencies and housing providers.
(D) The study shall identify the necessary and
appropriate roles and responsibilities of various
entities that would be involved in an accreditation
program, including the Department of Housing and Urban
Development, the Inspector General of the Department, an
accreditation entity, independent auditors and
examiners, local entities, and public housing agencies.
(E) The study shall estimate the costs involved in
developing and maintaining such an independent
accreditation program.
(3) Performance based models.--Various performance-based
models, including systems that establish performance goals or
targets, assess the compliance with such goals or targets, and
provide for incentives or sanctions based on performance
relative to such goals or targets.
[[Page 112 STAT. 2626]]
(4) Local review and monitoring models.--Various models
providing for local, resident, and community review and
monitoring of such agencies and housing providers, including
systems for review and monitoring by local and State
governmental bodies and agencies.
(5) Private models.--Various models using private
contractors for review and monitoring of such agencies and
housing providers.
(6) Other models.--Various models of any other systems that
may be more effective and efficient in regulating and evaluating
such agencies and housing providers.
(d) Consultation.--The entity that, pursuant to subsection (e),
carries out the study under this section shall, in carrying out the
study, consult with individuals and organizations experienced in
managing public housing, private real estate managers, representatives
from State and local governments, residents of public housing, families
and individuals receiving tenant-based assistance, the Secretary of
Housing and Urban Development, the Inspector General of the Department
of Housing and Urban Development, and the Comptroller General of the
United States.
(e) Contract to Conduct Study.--
(1) In general.--Subject <<NOTE: Deadline.>> to paragraph
(2), the Secretary shall enter into a contract, within 90 days
of the enactment of this Act, with a public or nonprofit private
entity to conduct the study under this section, using amounts
made available pursuant to subsection (g).
(2) National academy of public administration.--The
Secretary shall request the National Academy of Public
Administration to enter into the contract under paragraph (1) to
conduct the study under this section. If such Academy declines
to conduct the study, the Secretary shall carry out such
paragraph through other public or nonprofit private entities,
selected through a competitive process.
(f ) <<NOTE: Deadlines.>> Report.--
(1) Interim report.--The Secretary shall ensure that, not
later than the expiration of the 6-month period beginning on the
date of the execution of the contract under subsection (e)(1),
the entity conducting the study under this section submits to
the Congress an interim report describing the actions taken to
carry out the study, the actions to be taken to complete the
study, and any findings and recommendations available at the
time.
(2) Final report.--The Secretary shall ensure that--
(A) not later than the expiration of the 12-month
period beginning on the date of the execution of the
contract under subsection (e)(1), the study required
under this section is completed and a report describing
the findings and recommendations as a result of the
study is submitted to the Congress; and
(B) before submitting the report under this
paragraph to the Congress, the report is submitted to
the Secretary, national organizations for public housing
agencies, and other appropriate national organizations
at such time to provide the Secretary and such agencies
an opportunity to review the report and provide written
comments on the report, which shall be included together
with the report upon submission to the Congress under
subparagraph (A).
[[Page 112 STAT. 2627]]
(g) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 564. PUBLIC HOUSING MANAGEMENT ASSESSMENT PROGRAM.
Section 6( j) of the United States Housing Act of 1937 (42 U.S.C.
1437d( j)), as amended by the preceding provisions of this Act, is
further amended--
(1) in paragraph (1)--
(A) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) The amount and percentage of funds provided to the
public housing agency from the Capital Fund under section 9(d)
which remain unobligated by the public housing agency after 3
years.'';
(B) in subparagraph (D), by striking ``energy'' and
inserting ``utility'';
(C) by transferring and inserting subparagraph (E)
after subparagraph (D);
(D) by redesignating subparagraph (H) as
subparagraph (K); and
(E) by inserting after subparagraph (G) the
following new subparagraphs:
``(H) The extent to which the public housing agency--
``(i) coordinates, promotes, or provides effective
programs and activities to promote the economic self-
sufficiency of public housing residents; and
``(ii) provides public housing residents with
opportunities for involvement in the administration of
the public housing.
``(I) The extent to which the public housing agency--
``(i) implements effective screening and eviction
policies and other anticrime strategies; and
``(ii) coordinates with local government officials
and residents in the project and implementation of such
strategies.
``(J) The extent to which the public housing agency is
providing acceptable basic housing conditions.'';
(2) in paragraph (2)--
(A) in subparagraph (A)(i)--
(i) by inserting after the first sentence the
following: ``Such procedures shall provide that an
agency that fails on a widespread basis to provide
acceptable basic housing conditions for its
residents shall be designated as a troubled public
housing agency. The Secretary may use a simplified
set of indicators for public housing agencies with
less than 250 public housing units.''; and
(ii) by striking ``under section 14'' and
inserting ``for assistance from the Capital Fund
under section 9(d);
(B) in subparagraph (A)(iii), by striking ``under
section 14'' and inserting``for assistance from the
Capital Fund under section 9(d)'';
(C) in subparagraph (B)(i)--
(i) by inserting ``with more than 250 units''
after ``public housing agency''; and
[[Page 112 STAT. 2628]]
(ii) by striking ``review conducted under
section 14(p)'' and inserting ``comparable and
recent review''; and
(D) in the first sentence of subparagraph (C), by
inserting ``(if applicable)'' after ``subparagraph
(B)'';
(3) in paragraph (5)(F), as so redesignated by the preceding
provisions of this Act, by striking ``program under section 14''
and all that follows and inserting ``program for assistance from
the Capital Fund under section 9(d) and specifies the amount of
assistance the agency received under such program.''; and
(4) by adding at the end the following new paragraphs:
``(6)(A) To the extent that the Secretary determines such action to
be necessary in order to ensure the accuracy of any certification made
under this section, the Secretary shall require an independent auditor
to review documentation or other information maintained by a public
housing agency pursuant to this section to substantiate each
certification submitted by the agency or corporation relating to the
performance of that agency or corporation.
``(B) The Secretary may withhold, from assistance otherwise payable
to the agency or corporation under section 9, amounts sufficient to pay
for the reasonable costs of any review under this paragraph.
``(7) <<NOTE: Applicability.>> The Secretary shall apply the
provisions of this subsection to resident management corporations in the
same manner as applied to public housing agencies.''.
SEC. 565. EXPANSION OF POWERS FOR DEALING WITH PUBLIC HOUSING AGENCIES
IN SUBSTANTIAL DEFAULT.
(a) In General.--Section 6( j)(3) of the United States Housing Act
of 1937 (42 U.S.C. 1437d( j)(3)) is amended--
(1) in subparagraph (A)--
(A) by striking clause (i) and inserting the
following new clause:
``(i) solicit competitive proposals from other public
housing agencies and private housing management agents which (I)
in the discretion of the Secretary, may be selected by existing
public housing residents through administrative procedures
established by the Secretary, and (II) if appropriate, shall
provide for such agents to manage all, or part, of the housing
administered by the public housing agency or all or part of the
other programs of the agency;'';
(B) in clause (iii), by striking ``under section
14'' and inserting ``from the Capital Fund under section
9(d)''; and
(C) by striking clause (iv) and inserting the
following new clauses:
``(iv) take possession of all or part of the public housing
agency, including all or part of any project or program of the
agency, including any project or program under any other
provision of this title; and
``(v) require the agency to make other arrangements
acceptable to the Secretary and in the best interests of the
public housing residents and families assisted under section 8
for managing all, or part, of the public housing administered by
the agency or of the programs of the agency.''; and
(2) by striking subparagraphs (B) through (D) and inserting
the following new subparagraphs:
[[Page 112 STAT. 2629]]
``(B)(i) <<NOTE: Notification.>> If a public housing agency is
identified as troubled under this subsection, the Secretary shall notify
the agency of the troubled status of the agency.
``(ii)(I) Upon the expiration of the 1-year period beginning on the
later of the date on which the agency receives initial notice from the
Secretary of the troubled status of the agency under clause (i) and the
date of the enactment of the Quality Housing and Work Responsibility Act
of 1998, the agency shall improve its performance, as measured by the
performance indicators established pursuant to paragraph (1), by at
least 50 percent of the difference between the most recent performance
measurement and the measurement necessary to remove that agency's
designation as troubled.
``(II) Upon the expiration of the 2-year period beginning on the
later of the date on which the agency receives initial notice from the
Secretary of the troubled status of the agency under clause (i) and the
date of the enactment of the Quality Housing and Work Responsibility Act
of 1998, the agency shall improve its performance, as measured by the
performance indicators established pursuant to paragraph (1), such that
the agency is no longer designated as troubled.
``(III) In the event that a public housing agency designated as
troubled under this subsection fails to comply with the requirements set
forth in subclause (I) or (II), the Secretary shall--
``(aa) in the case of a troubled public housing agency with
1,250 or more units, petition for the appointment of a receiver
pursuant to subparagraph (A)(ii); or
``(bb) in the case of a troubled public housing agency with
fewer than 1,250 units, either petition for the appointment of a
receiver pursuant to subparagraph (A)(ii), or take possession of
the public housing agency (including all or part of any project
or program of the agency) pursuant to subparagraph (A)(iv) and
appoint, on a competitive or noncompetitive basis, an individual
or entity as an administrative receiver to assume the
responsibilities of the Secretary for the administration of all
or part of the public housing agency (including all or part of
any project or program of the agency).
This subparagraph shall not be construed to limit the courses of action
available to the Secretary under subparagraph (A).
``(IV) During the period between the date on which a petition is
filed under subclause (III)(aa) and the date on which a receiver assumes
responsibility for the management of the public housing agency under
such subclause, the Secretary may take possession of the public housing
agency (including all or part of any project or program of the agency)
pursuant to subparagraph (A)(iv) and may appoint, on a competitive or
noncompetitive basis, an individual or entity as an administrative
receiver to assume the responsibilities of the Secretary for the
administration of all or part of the public housing agency (including
all or part of any project or program of the agency).
``(C) If a receiver is appointed pursuant to subparagraph (A)(ii),
in addition to the powers accorded by the court appointing the receiver,
the receiver--
``(i) may abrogate any contract to which the United States
or an agency of the United States is not a party that, in the
receiver's written determination (which shall include the basis
for such determination), substantially impedes correction
[[Page 112 STAT. 2630]]
of the substantial default, but only after the receiver
determines that reasonable efforts to renegotiate such contract
have failed;
``(ii) may demolish and dispose of all or part of the assets
of the public housing agency (including all or part of any
project of the agency) in accordance with section 18, including
disposition by transfer of properties to resident-supported
nonprofit entities;
``(iii) if determined to be appropriate by the Secretary,
may seek the establishment, as permitted by applicable State and
local law, of 1 or more new public housing agencies;
``(iv) if determined to be appropriate by the Secretary, may
seek consolidation of all or part of the agency (including all
or part of any project or program of the agency), as permitted
by applicable State and local laws, into other well-managed
public housing agencies with the consent of such well-managed
agencies; and
``(v) shall not be required to comply with any State or
local law relating to civil service requirements, employee
rights (except civil rights), procurement, or financial or
administrative controls that, in the receiver's written
determination (which shall include the basis for such
determination), substantially impedes correction of the
substantial default.
``(D)(i) If, pursuant to subparagraph (A)(iv), the Secretary takes
possession of all or part of the public housing agency, including all or
part of any project or program of the agency, the Secretary--
``(I) may abrogate any contract to which the United States
or an agency of the United States is not a party that, in the
written determination of the Secretary (which shall include the
basis for such determination), substantially impedes correction
of the substantial default, but only after the Secretary
determines that reasonable efforts to renegotiate such contract
have failed;
``(II) may demolish and dispose of all or part of the assets
of the public housing agency (including all or part of any
project of the agency) in accordance with section 18, including
disposition by transfer of properties to resident-supported
nonprofit entities;
``(III) may seek the establishment, as permitted by
applicable State and local law, of 1 or more new public housing
agencies;
``(IV) may seek consolidation of all or part of the agency
(including all or part of any project or program of the agency),
as permitted by applicable State and local laws, into other
well-managed public housing agencies with the consent of such
well-managed agencies;
``(V) shall not be required to comply with any State or
local law relating to civil service requirements, employee
rights (except civil rights), procurement, or financial or
administrative controls that, in the Secretary's written
determination (which shall include the basis for such
determination), substantially impedes correction of the
substantial default; and
``(VI) shall, without any action by a district court of the
United States, have such additional authority as a district
court of the United States would have the authority to confer
upon a receiver to achieve the purposes of the receivership.
``(ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the Secretary
appoints an administrative receiver to assume the responsibilities
[[Page 112 STAT. 2631]]
of the Secretary for the administration of all or part of the public
housing agency (including all or part of any project or program of the
agency), the Secretary may delegate to the administrative receiver any
or all of the powers given the Secretary by this subparagraph, as the
Secretary determines to be appropriate and subject to clause (iii).
``(iii) An administrative receiver may not take an action described
in subclause (III) or (IV) of clause (i) unless the Secretary first
approves an application by the administrative receiver to authorize such
action.
``(E) The Secretary may make available to receivers and other
entities selected or appointed pursuant to this paragraph such
assistance as the Secretary determines in the discretion of the
Secretary is necessary and available to remedy the substantial
deterioration of living conditions in individual public housing projects
or other related emergencies that endanger the health, safety, and
welfare of public housing residents or families assisted under section
8. A decision made by the Secretary under this paragraph shall not be
subject to review in any court of the United States, or in any court of
any State, territory, or possession of the United States.
``(F) In any proceeding under subparagraph (A)(ii), upon a
determination that a substantial default has occurred and without regard
to the availability of alternative remedies, the court shall appoint a
receiver to conduct the affairs of all or part of the public housing
agency in a manner consistent with this Act and in accordance with such
further terms and conditions as the court may provide. The receiver
appointed may be another public housing agency, a private management
corporation, or any other person or appropriate entity. The court shall
have power to grant appropriate temporary or preliminary relief pending
final disposition of the petition by the Secretary.
``(G) The appointment of a receiver pursuant to this paragraph may
be terminated, upon the petition of any party, when the court determines
that all defaults have been cured or the public housing agency is
capable again of discharging its duties.
``(H) If the Secretary (or an administrative receiver appointed by
the Secretary) takes possession of a public housing agency (including
all or part of any project or program of the agency), or if a receiver
is appointed by a court, the Secretary or receiver shall be deemed to be
acting not in the official capacity of that person or entity, but rather
in the capacity of the public housing agency, and any liability
incurred, regardless of whether the incident giving rise to that
liability occurred while the Secretary or receiver was in possession of
all or part of the public housing agency (including all or part of any
project or program of the agency), shall be the liability of the public
housing agency.''.
(b) Applicability.--The <<NOTE: 42 USC 1437d note.>> provisions of,
and duties and authorities conferred or confirmed by, the amendments
made by subsection (a) shall apply with respect to any action taken
before, on, or after the effective date of this Act and shall apply to
any receiver appointed for a public housing agency before the date of
the enactment of this Act.
(c) Technical Correction Regarding Applicability to Section 8.--
Section 8(h) of the United States Housing Act <<NOTE: 42 USC 1437f.>> of
1937 is amended by inserting ``(except as provided in section 6(
j)(3))'' after ``section 6''.
[[Page 112 STAT. 2632]]
(d) Implementation.--The <<NOTE: 42 USC 1437d note.>> Secretary may
administer the amendments made by subsection (a) as necessary to ensure
the efficient and effective initial implementation of this section.
(e) Applicability.--This <<NOTE: 42 USC 1437d note.>> section shall
take effect on, and the amendments made by this section are made on, and
shall apply beginning upon, the date of the enactment of this Act.
SEC. 566. AUDITS.
Section <<NOTE: 42 USC 1437c.>> 5 of the United States Housing Act
of 1937 (42 U.S.C. 1437d), as amended by the preceding provisions of
this Act, is further amended by inserting after subsection (g) the
following new subsection:
``(h) Audits.--
``(1) By secretary and comptroller general.--Each contract
for contributions for any assistance under this Act to a public
housing agency shall provide that the Secretary, the Inspector
General of the Department of Housing and Urban Development, and
the Comptroller General of the United States, or any of their
duly authorized representatives, shall, for the purpose of audit
and examination, have access to any books, documents, papers,
and records of the public housing agency that are pertinent to
this Act and to its operations with respect to financial
assistance under the this Act.
``(2) Withholding of amounts for audits under single audit
act.--The Secretary may, in the sole discretion of the
Secretary, arrange for and pay the costs of an audit required
under chapter 75 of title 31, United States Code. In such
circumstances, the Secretary may withhold, from assistance
otherwise payable to the agency under this Act, amounts
sufficient to pay for the reasonable costs of conducting an
acceptable audit, including, when appropriate, the reasonable
costs of accounting services necessary to place the agency's
books and records in auditable condition. As agreed to by the
Secretary and the Inspector General, the Inspector General may
arrange for an audit under this paragraph.''.
SEC. 567. ADVISORY COUNCIL FOR HOUSING AUTHORITY OF NEW ORLEANS.
(a) Establishment.--The Secretary and the Housing Authority of New
Orleans (in this section referred to as the ``Housing Authority'')
shall, pursuant to the cooperative endeavor agreement in effect between
the Secretary and the Housing Authority, establish an advisory council
for the Housing Authority of New Orleans (in this section referred to as
the ``advisory council'') that complies with the requirements of this
section.
(b) Membership.--
(1) In <<NOTE: Deadline.>> general.--The advisory council
shall be appointed by the Secretary, not later than 90 days
after the date of the enactment of this Act, and shall be
composed of the following members:
(A) The Inspector General of the Department of
Housing and Urban Development (or the Inspector
General's designee).
(B) Not more than 7 other members, who shall be
selected for appointment based on their experience in
successfully reforming troubled public housing agencies
or in providing affordable housing in coordination with
State
[[Page 112 STAT. 2633]]
and local governments, the private sector, affordable
housing residents, or local nonprofit organizations.
(2) Prohibition on additional pay.--Members of the advisory
council shall serve without compensation, but shall be
reimbursed for travel, subsistence, and other necessary expenses
incurred in the performance of their duties as members of the
Board using amounts made available for technical assistance
under section 9(h) of the United States Housing Act of 1937 (as
amended by this Act).
(c) Functions.--The advisory council shall--
(1) <<NOTE: Regulations.>> establish standards and
guidelines for assessing the performance of the Housing
Authority in carrying out operational, asset management, and
financial functions for purposes of the reports and finding
under subsections (d) and (e), respectively;
(2) provide advice, expertise, and recommendations to the
Housing Authority regarding the management, operation, repair,
redevelopment, revitalization, demolition, and disposition of
public housing projects of the Housing Authority;
(3) <<NOTE: Reports.>> report to the Congress under
subsection (d) regarding any progress of the Housing Authority
in improving the performance of its functions; and
(4) make a final finding to the Congress under subsection
(e) regarding the future of the Housing Authority.
(d) Quarterly Reports.--The advisory council shall report to the
Congress and the Secretary not less than every 3 months regarding the
performance of the Housing Authority and any progress of the authority
in improving its performance and carrying out its functions.
(e) Final Finding.--Upon the expiration of the 18-month period that
begins upon the appointment under subsection (b)(1) of all members of
the advisory council, the advisory council shall make and submit to the
Congress and the Secretary a finding of whether the Housing Authority
has substantially improved its performance, the performance of its
functions, and the overall condition of the Authority such that the
Authority should be allowed to continue to operate as the manager of the
public housing of the Authority. In making the finding under this
subsection, the advisory council shall consider whether the Housing
Authority has made sufficient progress in the demolition and
revitalization of the Desire Homes project, the revitalization of the
St. Thomas Homes project, the appropriate allocation of operating
subsidy amounts, and the appropriate expending of modernization amounts.
(f ) Receivership.--If the advisory council finds under subsection
(e) that the Housing Authority has not substantially improved its
performance in a manner sufficient that the Authority should be allowed
to continue to operate as the manager of the public housing of the
Authority, the Secretary shall (notwithstanding the conditions required
under section 6( j)(3)(A) of the United States Housing Act of 1937 for
action under such section) petition under clause (ii) of section 6(
j)(3)(A) for the appointment of a receiver for the Housing Authority,
which receivership shall be subject to the provisions of such section.
(g) Regular Remedies.--Nothing in this section, or in the
cooperative endeavor agreement in effect between the Secretary and the
Housing Authority, may be construed to prevent the Secretary from taking
any action with respect to the Housing Authority,
[[Page 112 STAT. 2634]]
in accordance with such section 6( j)(3) of the United States Housing
Act of 1937 (42 U.S.C. 1437d( j)(3)), as amended by this Act, that is
authorized under section.
(f ) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 568. TREATMENT OF TROUBLED PHA'S.
Section 105 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12705) is amended by adding at the end the following new
subsection:
``(g) Treatment of Troubled Public Housing Agencies.--
``(1) Effect of troubled status on chas.--The comprehensive
housing affordability strategy (or any consolidated plan
incorporating such strategy) for the State or unit of general
local government in which any troubled public housing agency is
located shall not be considered to comply with the requirements
under this section unless such plan includes a description of
the manner in which the State or unit will provide financial or
other assistance to such troubled agency in improving its
operations to remove such designation.
``(2) Definition.--For purposes of this subsection, the term
`troubled public housing agency' means a public housing agency
that, upon the effective date of the Quality Housing and Work
Responsibility Act of 1998, is designated under section 6( j)(2)
of the United States Housing Act of 1937 as a troubled public
housing agency.''.
Subtitle F--Safety and Security in Public and Assisted Housing
SEC. 575. PROVISIONS APPLICABLE ONLY TO PUBLIC HOUSING AND SECTION 8
ASSISTANCE.
(a) Drug-Related and Criminal Activity Under Public Housing
Grievance Procedure.--Section 6(k) of the United States Housing Act of
1937 (42 U.S.C. 1437d(k)) is amended, in the matter following paragraph
(6)--
(1) by inserting ``violent or'' before ``drug-related''; and
(2) by inserting ``or any activity resulting in a felony
conviction,'' after ``on or off such premises,''.
(b) Termination of Tenancy in Public Housing.--Section 6(l) of the
United States Housing Act of 1937 (42 U.S.C. 1437d(l)) is amended--
(1) in paragraph (4) (as so redesignated by the preceding
provisions of this Act)--
(A) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) a reasonable period of time, but not to exceed
30 days--
``(i) if the health or safety of other
tenants, public housing agency employees, or
persons residing in the immediate vicinity of the
premises is threatened; or
``(ii) in the event of any drug-related or
violent criminal activity or any felony
conviction;''; and
(B) in subparagraph (C), by inserting before the
semicolon at the end the following: ``, except that if a
State
[[Page 112 STAT. 2635]]
or local law provides for a shorter period of time, such
shorter period shall apply'';
(2) in paragraph (7) (as so redesignated by the preceding
provisions of this Act), by striking ``and'' at the end;
(4) by inserting after paragraph (7) (as so redesignated by
the preceding provisions of this Act), the following new
paragraph:
``(7) provide that any occupancy in violation of section
576(b) of the Quality Housing and Work Responsibility Act of
1998 (relating to ineligibility of illegal drug users and
alcohol abusers) or the furnishing of any false or misleading
information pursuant to section 577 of such Act (relating to
termination of tenancy and assistance for illegal drug users and
alcohol abusers) shall be cause for termination of tenancy;''.
(c) Availability of Criminal Records for Tenant Screening and
Eviction.--Section 6(q) of the United States Housing Act of 1937 (42
U.S.C. 1437d(q)(1)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking ``subparagraph (B)'' and
inserting ``subparagraph (C)''; and
(ii) by striking ``public housing'' and
inserting ``covered housing assistance'';
(B) by redesignating subparagraph (B) as
subparagraph (C); and
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B) Requests by owners of project-based section 8
housing.--A public housing agency may make a request
under subparagraph (A) for information regarding
applicants for, or tenants of, housing that is provided
project-based assistance under section 8 only if the
housing is located within the jurisdiction of the agency
and the owner of such housing has requested that the
agency obtain such information on behalf of the owner.
Upon such a request by the owner, the agency shall make
a request under subparagraph (A) for the information.
The agency may not make such information available to
the owner but shall perform determinations for the owner
regarding screening, lease enforcement, and eviction
based on criteria supplied by the owner.'';
(2) in paragraph (3)--
(A) by striking ``Fee'' and inserting ``Fees''; and
(B) by adding at the end the following new sentence:
``In the case of a public housing agency obtaining
information pursuant to paragraph (1)(B) for another
owner of housing, the agency may pass such fee on to the
owner initiating the request and may charge additional
reasonable fees for making the request on behalf of the
owner and taking other actions for owners under this
subsection.'';
(3) by striking paragraph (5) and inserting the following
new paragraph:
``(8) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Adult.--The term `adult' means a person who is
18 years of age or older, or who has been convicted
[[Page 112 STAT. 2636]]
of a crime as an adult under any Federal, State, or
tribal law.
``(B) Covered housing assistance.--The term `covered
housing assistance' means--
``(i) a dwelling unit in public housing;
``(ii) a dwelling unit in housing that is
provided project-based assistance under section 8,
including new construction and substantial
rehabilitation projects; and
``(iii) tenant-based assistance under section
8.
``(C) Owner.--The term `owner' means, with respect
to covered housing assistance described in subparagraph
(B)(ii), the entity or private person (including a
cooperative or public housing agency) that has the legal
right to lease or sublease dwelling units in the housing
assisted.''; and
(4) by inserting after paragraph (4) the following new
paragraphs:
``(5) Confidentiality.--A public housing agency receiving
information under this subsection may use such information only
for the purposes provided in this subsection and such
information may not be disclosed to any person who is not an
officer, employee, or authorized representative of the agency
and who has a job-related need to have access to the information
in connection with admission of applicants, eviction of tenants,
or termination of assistance. For judicial eviction proceedings,
disclosures may be made to the extent
necessary. <<NOTE: Regulations.>> The Secretary shall, by
regulation, establish procedures necessary to ensure that
information provided under this subsection to a public housing
agency is used, and confidentiality of such information is
maintained, as required under this subsection. The Secretary
shall establish standards for confidentiality of information
obtained under this subsection by public housing agencies on
behalf of owners.
``(6) Penalty.--Any person who knowingly and willfully
requests or obtains any information concerning an applicant for,
or tenant of, covered housing assistance pursuant to the
authority under this subsection under false pretenses, or any
person who knowingly and willfully discloses any such
information in any manner to any individual not entitled under
any law to receive it, shall be guilty of a misdemeanor and
fined not more than $5,000. The term `person' as used in this
paragraph include an officer, employee, or authorized
representative of any public housing agency.
``(7) Civil Action.--Any applicant for, or tenant of,
covered housing assistance affected by (A) a negligent or
knowing disclosure of information referred to in this subsection
about such person by an officer, employee, or authorized
representative of any public housing agency, which disclosure is
not authorized by this subsection, or (B) any other negligent or
knowing action that is inconsistent with this subsection, may
bring a civil action for damages and such other relief as may be
appropriate against any public housing agency responsible for
such unauthorized action. <<NOTE: Courts.>> The district court
of the United States in the district in which the affected
applicant or tenant resides, in which such unauthorized action
occurred, or in which the officer, employee, or representative
alleged to be responsible for any such unauthorized action
resides, shall have jurisdiction
[[Page 112 STAT. 2637]]
in such matters. Appropriate relief that may be ordered by such
district courts shall include reasonable attorney's fees and
other litigation costs.''.
(d) Authority To Require Access to Criminal Records.--Section 6 of
the United States Housing Act of 1937 (42 U.S.C. 1437d), as amended by
the preceding provisions of this Act, is further amended by adding at
the end the following new subsection:
``(t) Authority To Require Access to Criminal Records.--A public
housing agency may require, as a condition of providing admission to the
public housing program or assisted housing program under the
jurisdiction of the public housing agency, that each adult member of the
household provide a signed, written authorization for the public housing
agency to obtain records described in subsection (q)(1) regarding such
member of the household from the National Crime Information Center,
police departments, and other law enforcement agencies.''.
(e) Obtaining Information From Drug Abuse Treatment Facilities.--
Section 6 of the United States Housing Act of 1937 (42 U.S.C. 1437d), as
amended by the preceding provisions of this Act, is further amended by
adding at the end the following new subsection:
``(u) Obtaining Information From Drug Abuse Treatment Facilities.--
``(1) Authority.--Notwithstanding any other provision of law
other than the Public Health Service Act (42 U.S.C. 201 et
seq.), a public housing agency may require each person who
applies for admission to public housing to sign one or more
forms of written consent authorizing the agency to receive
information from a drug abuse treatment facility that is solely
related to whether the applicant is currently engaging in the
illegal use of a controlled substance.
``(2) Confidentiality of applicant's records.--
``(A) Limitation on information requested.--In a
form of written consent, a public housing agency may
request only whether the drug abuse treatment facility
has reasonable cause to believe that the applicant is
currently engaging in the illegal use of a controlled
substance.
``(B) Records management.--Each public housing
agency that receives information under this subsection
from a drug abuse treatment facility shall establish and
implement a system of records management that ensures
that any information received by the public housing
agency under this subsection--
``(i) is maintained confidentially in
accordance with section 543 of the Public Health
Service Act (12 U.S.C. 290dd-2);
``(ii) is not misused or improperly
disseminated; and
``(iii) is destroyed, as applicable--
``(I) not later than 5 business days
after the date on which the public
housing agency gives final approval for
an application for admission; or
``(II) if the public housing agency
denies the application for admission, in
a timely manner after the date on which
the statute of limitations for the
commencement of a civil action from the
[[Page 112 STAT. 2638]]
applicant based upon that denial of
admission has expired.
``(C) Expiration of written consent.--In addition to
the requirements of subparagraph (B), an applicant's
signed written consent shall expire automatically after
the public housing agency has made a final decision to
either approve or deny the applicant's application for
admittance to public housing.
``(3) Prohibition of discriminatory treatment of
applicants.--
``(A) Forms signed.--A public housing agency may
only require an applicant for admission to public
housing to sign one or more forms of written consent
under this subsection if the public housing agency
requires all such applicants to sign the same form or
forms of written consent.
``(B) Circumstances of inquiry.--A public housing
agency may only make an inquiry to a drug abuse
treatment facility under this subsection if--
``(i) the public housing agency makes the same
inquiry with respect to all applicants; or
``(ii) the public housing agency only makes
the same inquiry with respect to each and every
applicant with respect to whom--
``(I) the public housing agency
receives information from the criminal
record of the applicant that indicates
evidence of a prior arrest or
conviction; or
``(II) the public housing agency
receives information from the records of
prior tenancy of the applicant that
demonstrates that the applicant--
``(aa) engaged in the
destruction of property;
``(bb) engaged in violent
activity against another person;
or
``(cc) interfered with the
right of peaceful enjoyment of
the premises of another tenant.
``(4) Fee permitted.--A drug abuse treatment facility may
charge a public housing agency a reasonable fee for information
provided under this subsection.
``(5) Disclosure permitted by treatment facilities.--A drug
abuse treatment facility shall not be liable for damages based
on any information required to be disclosed pursuant to this
subsection if such disclosure is consistent with section 543 of
the Public Health Service Act (42 U.S.C. 290dd-2).
``(6) Option to not request information.--A public housing
agency shall not be liable for damages based on its decision not
to require each person who applies for admission to public
housing to sign one or more forms of written consent authorizing
the public housing agency to receive information from a drug
abuse treatment facility under this subsection.
``(7) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Drug abuse treatment facility.--The term `drug
abuse treatment facility' means an entity that--
``(i) is--
[[Page 112 STAT. 2639]]
``(I) an identified unit within a
general medical care facility; or
``(II) an entity other than a
general medical care facility; and
``(ii) holds itself out as providing, and
provides, diagnosis, treatment, or referral for
treatment with respect to the illegal use of a
controlled substance.
``(B) Controlled substance.--The term `controlled
substance' has the meaning given the term in section 102
of the Controlled Substances Act (21 U.S.C. 802).
``(C) Currently engaging in the illegal use of a
controlled substance.--The term `currently engaging in
the illegal use of a controlled substance' means the
illegal use of a controlled substance that occurred
recently enough to justify a reasonable belief that an
applicant's illegal use of a controlled substance is
current or that continuing illegal use of a controlled
substance by the applicant is a real and ongoing
problem.
``(8) Effective date.--This subsection shall take effect
upon enactment and without the necessity of guidance from, or
any regulation issued by, the Secretary.''.
SEC. 576. <<NOTE: 42 USC 13661.>> SCREENING OF APPLICANTS FOR FEDERALLY
ASSISTED HOUSING.
(a) Ineligibility Because of Eviction for Drug Crimes.--Any tenant
evicted from federally assisted housing by reason of drug-related
criminal activity (as such term is defined in section 3(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)) shall not be eligible
for federally assisted housing during the 3-year period beginning on the
date of such eviction, unless the evicted tenant successfully completes
a rehabilitation program approved by the public housing agency (which
shall include a waiver of this subsection if the circumstances leading
to eviction no longer exist).
(b) Ineligibility of Illegal Drug Users and Alcohol Abusers.--
(1) In <<NOTE: Standards.>> general.--Notwithstanding any
other provision of law, a public housing agency or an owner of
federally assisted housing, as determined by the Secretary,
shall establish standards that prohibit admission to the program
or admission to federally assisted housing for any household
with a member--
(A) who the public housing agency or owner
determines is illegally using a controlled substance; or
(B) with respect to whom the public housing agency
or owner determines that it has reasonable cause to
believe that such household member's illegal use (or
pattern of illegal use) of a controlled substance, or
abuse (or pattern of abuse) of alcohol, may interfere
with the health, safety, or right to peaceful enjoyment
of the premises by other residents.
(2) Consideration of rehabilitation.--In determining
whether, pursuant to paragraph (1)(B), to deny admission to the
program or federally assisted housing to any household based on
a pattern of illegal use of a controlled substance or a pattern
of abuse of alcohol by a household member, a public housing
agency or an owner may consider whether such household member--
[[Page 112 STAT. 2640]]
(A) has successfully completed a supervised drug or
alcohol rehabilitation program (as applicable) and is no
longer engaging in the illegal use of a controlled
substance or abuse of alcohol (as applicable);
(B) has otherwise been rehabilitated successfully
and is no longer engaging in the illegal use of a
controlled substance or abuse of alcohol (as
applicable); or
(C) is participating in a supervised drug or alcohol
rehabilitation program (as applicable) and is no longer
engaging in the illegal use of a controlled substance or
abuse of alcohol (as applicable).
(c) Authority To Deny Admission To Criminal Offenders..--Except as
provided in subsections (a) and (b) of this section and in addition to
any other authority to screen applicants, in selecting among applicants
for admission to the program or to federally assisted housing, if the
public housing agency or owner of such housing (as applicable)
determines that an applicant or any member of the applicant's household
is or was, during a reasonable time preceding the date when the
applicant household would otherwise be selected for admission, engaged
in any drug-related or violent criminal activity or other criminal
activity which would adversely affect the health, safety, or right to
peaceful enjoyment of the premises by other residents, the owner, or
public housing agency employees, the public housing agency or owner
may--
(1) deny such applicant admission to the program or to
federally assisted housing; and
(2) after the expiration of the reasonable period beginning
upon such activity, require the applicant, as a condition of
admission to the program or to federally assisted housing, to
submit to the public housing agency or owner evidence sufficient
(as the Secretary shall by regulation provide) to ensure that
the individual or individuals in the applicant's household who
engaged in criminal activity for which denial was made under
paragraph (1) have not engaged in any criminal activity during
such reasonable period.
(d) Conforming Amendments.--The United States Housing Act of 1937 is
amended--
(1) in <<NOTE: 42 USC 1437d.>> section 6--
(A) by striking subsection (r); and
(B) by redesignating subsections (s), (t), and (u)
(as added by the preceding provisions of this Act) as
subsections (r), (s), and (t), respectively; and
(2) in section 16 (42 U.S.C. 1437n), by striking subsection
(e).
SEC. 577. <<NOTE: 42 USC 13662.>> TERMINATION OF TENANCY AND ASSISTANCE
FOR ILLEGAL DRUG USERS AND ALCOHOL ABUSERS IN FEDERALLY
ASSISTED HOUSING.
(a) In <<NOTE: Standards.>> General.--Notwithstanding any other
provision of law, a public housing agency or an owner of federally
assisted housing (as applicable), shall establish standards or lease
provisions for continued assistance or occupancy in federally assisted
housing that allow the agency or owner (as applicable) to terminate the
tenancy or assistance for any household with a member--
(1) who the public housing agency or owner determines is
illegally using a controlled substance; or
[[Page 112 STAT. 2641]]
(2) whose illegal use (or pattern of illegal use) of a
controlled substance, or whose abuse (or pattern of abuse) of
alcohol, is determined by the public housing agency or owner to
interfere with the health, safety, or right to peaceful
enjoyment of the premises by other residents.
(b) Consideration of Rehabilitation.--In determining whether,
pursuant to subsection (a)(2), to terminate tenancy or assistance to any
household based on a pattern of illegal use of a controlled substance or
a pattern of abuse of alcohol by a household member, a public housing
agency or an owner may consider whether such household member--
(1) has successfully completed a supervised drug or alcohol
rehabilitation program (as applicable) and is no longer engaging
in the illegal use of a controlled substance or abuse of alcohol
(as applicable);
(2) has otherwise been rehabilitated successfully and is no
longer engaging in the illegal use of a controlled substance or
abuse of alcohol (as applicable); or
(3) is participating in a supervised drug or alcohol
rehabilitation program (as applicable) and is no longer engaging
in the illegal use of a controlled substance or abuse of alcohol
(as applicable).
SEC. 578. <<NOTE: 42 USC 13663.>> INELIGIBILITY OF DANGEROUS SEX
OFFENDERS FOR ADMISSION TO PUBLIC HOUSING.
(a) In General.--Notwithstanding any other provision of law, an
owner of federally assisted housing shall prohibit admission to such
housing for any household that includes any individual who is subject to
a lifetime registration requirement under a State sex offender
registration program.
(b) Obtaining information.--As provided in regulations issued by the
Secretary to carry out this section--
(1) a public housing agency shall carry out criminal history
background checks on applicants for federally assisted housing
and make further inquiry with State and local agencies as
necessary to determine whether an applicant for federally
assisted housing is subject to a lifetime registration
requirement under a State sex offender registration program; and
(2) State and local agencies responsible for the collection
or maintenance of criminal history record information or
information on persons required to register as sex offenders
shall comply with requests of public housing agencies for
information pursuant to this section.
(c) Requests By Owners For PHA's To Obtain Information.--A public
housing agency may take any action under subsection (b) regarding
applicants for, or tenants of, federally assisted housing other than
federally assisted housing described in subparagraph (A) or (B) of
section 579(a)(2), but only if the housing is located within the
jurisdiction of the agency and the owner of such housing has requested
that the agency take such action on behalf of the owner. Upon such a
request by the owner, the agency shall take the action requested under
subsection (b). The agency may not make any information obtained
pursuant to the action under subsection (b) available to the owner but
shall perform determinations for the owner regarding screening, lease
enforcement, and eviction based on criteria supplied by the owner.
[[Page 112 STAT. 2642]]
(d) Opportunity <<NOTE: Records.>> To Dispute.--Before an adverse
action is taken with respect to an applicant for federally assisted
housing on the basis that an individual is subject to a lifetime
registration requirement under a State sex offender registration
program, the public housing agency obtaining the record shall provide
the tenant or applicant with a copy of the registration information and
an opportunity to dispute the accuracy and relevance of that
information.
(e) Fee.--A public housing agency may be charged a reasonable fee
for taking actions under subsection (b). In the case of a public housing
agency taking actions on behalf of another owner of federally assisted
housing pursuant to subsection (c), the agency may pass such fee on to
the owner making the request and may charge an additional reasonable fee
for making the request on behalf of the owner.
(f ) Records Management.--Each public housing agency shall establish
and implement a system of records management that ensures that any
criminal record or information regarding a lifetime registration
requirement under a State sex offender registration program that is
obtained under this section by the public housing agency is--
(1) maintained confidentially;
(2) not misused or improperly disseminated; and
(3) destroyed, once the purpose for which the record was
requested has been accomplished.
SEC. 579. <<NOTE: 42 USC 13664.>> DEFINITIONS.
(a) Definitions.--For purposes of this subtitle, the following
definitions shall apply:
(1) Drug-related criminal activity.--The term ``drug-related
criminal activity'' has the meaning given the term in section
3(b) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)).
(2) Federally assisted housing.--The term ``federally
assisted housing'' means a dwelling unit--
(A) in public housing (as such term is defined in
section 3(b) of the United States Housing Act of 1937
(42 U.S.C. 1437a));
(B) assisted with tenant-based assistance under
section 8 of the United States Housing Act of 1937;
(C) in housing that is provided project-based
assistance under section 8 of the United States Housing
Act of 1937, including new construction and substantial
rehabilitation projects;
(D) in housing that is assisted under section 202 of
the Housing Act of 1959 (as amended by section 801 of
the Cranston-Gonzalez National Affordable Housing Act);
(E) in housing that is assisted under section 202 of
the Housing Act of 1959, as such section existed before
the enactment of the Cranston-Gonzalez National
Affordable Housing Act;
(F) in housing that is assisted under section 811 of
the Cranston-Gonzalez National Affordable Housing Act;
(G) in housing financed by a loan or mortgage
insured under section 221(d)(3) of the National Housing
Act that bears interest at a rate determined under the
proviso of section 221(d)(5) of such Act;
[[Page 112 STAT. 2643]]
(H) in housing insured, assisted, or held by the
Secretary or a State or State agency under section 236
of the National Housing Act; or
(I) in housing assisted under section 514 or 515 of
the Housing Act of 1949.
(3) Owner.--The term ``owner'' means, with respect to
federally assisted housing, the entity or private person
(including a cooperative or public housing agency) that has the
legal right to lease or sublease dwelling units in such housing.
Subtitle G--Repeals and Related Provisions
SEC. 581. <<NOTE: 42 USC 1437 note.>> ANNUAL REPORT.
(a) In <<NOTE: Deadline.>> General.--Not later than 1 year after the
date of the enactment of this Act, and annually thereafter, the
Secretary shall submit a report to the Congress on--
(1) the impact of the amendments made by this Act on--
(A) the demographics of public housing residents and
families receiving tenant-based assistance under the
United States Housing Act of 1937; and
(B) the economic viability of public housing
agencies; and
(2) the effectiveness of the rent policies established by
this Act and the amendments made by this Act on the employment
status and earned income of public housing residents.
(b) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 582. REPEALS RELATING TO PUBLIC HOUSING AND SECTION 8 PROGRAMS.
(a) In General.--The following provisions of law are hereby
repealed:
(1) Public housing rent waivers for police.--Section 519 of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
1437a-1).
(2) Treatment of certificate and voucher holders.--
Subsection (c) of section 183 of the Housing and Community
Development Act of 1987 (42 U.S.C. 1437f note).
(3) Report regarding fair housing objectives.--Section 153
of the Housing and Community Development Act of 1992 (42 U.S.C.
1437f note).
(4) Miscellaneous provisions.--Subsections (b)(1) and (c) of
section 326 of the Housing and Community Development Amendments
of 1981 (Public Law 97-35, 95 Stat. 406; 42 U.S.C. 1437f note).
(5) Payment for development managers.--Section 329A of the
Housing and Community Development Amendments of 1981 (42 U.S.C.
1437j-1).
(6) Public housing childhood development.--Section 222 of
the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C.
1701z-6 note).
(7) Indian housing childhood development.--Section 518 of
the Cranston-Gonzalez National Affordable Housing Act (12 U.S.C.
1701z-6 note).
[[Page 112 STAT. 2644]]
(8) Public housing comprehensive transition demonstration.--
Section 126 of the Housing and Community Development Act of 1987
(42 U.S.C. 1437f note).
(9) Public housing one-stop perinatal services
demonstration.--Section 521 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 1437t note).
(10) Public housing mincs demonstration.--Section 522 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
1437f note).
(11) Public housing energy efficiency demonstration.--
Section 523 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 1437g note).
(12) Omaha homeownership demonstration.--Section 132 of the
Housing and Community Development Act of 1992 (Public Law 102-
550; 106 Stat. 3712).
(13) Public and assisted housing youth sports programs.--
Section 520 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 11903a).
(14) Multifamily financing.--The penultimate sentence of
section 302(b)(2) of the National Housing Act (12 U.S.C.
1717(b)(2)) and the penultimate sentence of section 305(a)(2) of
the Emergency Home Finance Act of 1970 (12 U.S.C. 1454(a)(2)).
(15) Special projects for elderly or handicapped families.--
Section 209 of the Housing and Community Development Act of 1974
(42 U.S.C. 1438).
(b) Savings <<NOTE: 12 USC 1454 note.>> Provision.--Except to the
extent otherwise provided in this Act, the repeals made by subsection
(a) shall not affect any legally binding obligations entered into before
the effective date under section 503(a) of this Act.
SEC. 583. PUBLIC HOUSING FLEXIBILITY IN CHAS.
Section 105(b) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12705(b)) is amended--
(1) by transferring and inserting the flush material that
precedes the first paragraph that is designated as (17)
(relating to abbreviated housing strategies and consisting of 2
sentences) to the end of the subsection (following the last
numbered paragraph);
(2) by redesignating the second paragraph that is designated
as paragraph (17) (as added by section 681(2) of the Housing and
Community Development Act of 1992 (Public Law 102-550; 106 Stat.
3830)) as paragraph (20);
(3) by redesignating paragraph (17) (as added by section
220(b)(3) of the Housing and Community Development Act of 1992
(Public Law 102-550; 106 Stat. 3761)) as paragraph (19);
(4) in the second paragraph designated as paragraph (16) (as
so designated by section 220(c)(1) of the Housing and Community
Development Act of 1992 (Public Law 102-550; 106 Stat. 3762))--
(A) by striking ``and'' at the end; and
(B) by striking ``(16)'' and inserting ``(18)'';
(5) in paragraph (16) (as added by section 1014(3) of the
Housing and Community Development Act of 1992 (Public Law 102-
550; 106 Stat. 3908))--
(A) by striking the period at the end and inserting
a semicolon; and
[[Page 112 STAT. 2645]]
(B) by striking ``(16)'' and inserting ``(17)'';
(6) by redesignating paragraphs (11) through (15) as
paragraphs (12) through (16), respectively; and
(7) by inserting after paragraph (10) the following new
paragraph:
``(11) describe the manner in which the plan of the
jurisdiction will help address the needs of public housing;''.
SEC. 584. <<NOTE: 42 USC 1437 note.>> USE OF AMERICAN PRODUCTS.
(a) Purchase of American-Made Equipment and Products.--It is the
sense of the Congress that, to the greatest extent practicable, all
equipment and products purchased with funds made available in this Act
should be American made.
(b) Notice Requirement.--In providing financial assistance to, or
entering into any contract with, any entity using funds made available
in this Act, the head of each Federal agency, to the greatest extent
practicable, shall provide to such entity a notice describing the
statement made in subsection (a) by the Congress.
(c) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 585. <<NOTE: 42 USC 1437 note.>> GAO STUDY ON HOUSING ASSISTANCE
PROGRAM COSTS.
(a) Study.--The Comptroller General of the United States shall
conduct a study that provides an objective and independent accounting
and analysis of the full cost to the Federal Government, public housing
agencies, State and local governments, and other entities, per assisted
household, of the Federal assisted housing programs, taking into account
the qualitative differences among Federal assisted housing programs in
accordance with applicable standards of the Department of Housing and
Urban Development.
(b) Contents.--The study under this section shall--
(1) analyze the full cost to the Federal Government, public
housing agencies, State and local governments, and other
parties, per assisted household, of the Federal assisted housing
programs, in accordance with generally accepted accounting
principles, and shall conduct the analysis on a nationwide and
regional basis and in a manner such that accurate per unit cost
comparisons may be made between Federal assisted housing
programs, including grants, direct subsidies, tax concessions,
Federal mortgage insurance liability, periodic renovation and
rehabilitation, and modernization costs, demolition costs, and
other ancillary costs such as security; and
(2) measure and evaluate qualitative differences among
Federal assisted housing programs in accordance with applicable
standards of the Department of Housing and Urban Development.
(c) Prohibition of Recommendations.--In conducting the study under
this section and reporting under subsection (e), the Comptroller General
may not make any recommendations regarding Federal housing policy.
(d) Federal Assisted Housing Programs.--For purposes of this
section, the term ``Federal assisted housing programs'' means--
(1) the public housing program under the United States
Housing Act of 1937, except that the study under this section
shall differentiate between and compare the development and
construction of new public housing and the assistance of
existing public housing structures;
[[Page 112 STAT. 2646]]
(2) the certificate program for rental assistance under
section 8(b)(1) of the United States Housing Act of 1937;
(3) the voucher program for rental assistance under section
8(o) of the United States Housing Act of 1937;
(4) the programs for project-based assistance under section
8 of the United States Housing Act of 1937;
(5) the rental assistance payments program under section
521(a)(2)(A) of the Housing Act of 1949;
(6) the program for housing for the elderly under section
202 of the Housing Act of 1959;
(7) the program for housing for persons with disabilities
under section 811 of the Cranston-Gonzalez National Affordable
Housing Act;
(8) the program for financing housing by a loan or mortgage
insured under section 221(d)(3) of the National Housing Act that
bears interest at a rate determined under the proviso of section
221(d)(5) of such Act;
(9) the program under section 236 of the National Housing
Act;
(10) the program for construction or substantial
rehabilitation under section 8(b)(2) of the United States
Housing Act of 1937, as in effect before October 1, 1983; and
(11) any other program for housing assistance administered
by the Secretary of Housing and Urban Development or the
Secretary of Agriculture, under which occupancy in the housing
assisted or housing assistance provided is based on income, as
the Comptroller General may determine.
(e) Report.--Not <<NOTE: Deadline.>> later than 12 months after the
date of the enactment of this Act, the Comptroller General shall submit
to the Congress a final report which shall contain the results of the
study under this section, including the analysis and estimates required
under subsection (b).
(f ) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 586. <<NOTE: Public and Assisted Housing Drug Elimination Program
Amendments of 1998. Law enforcement and crime. 42 USC 11901
note.>> AMENDMENTS TO PUBLIC AND ASSISTED HOUSING DRUG
ELIMINATION ACT OF 1990.
(a) Short Title.--This section may be cited as the ``Public and
Assisted Housing Drug Elimination Program Amendments of 1998''.
(b) Findings.--Section 5122 of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11901) is amended--
(1) in paragraph (2), by inserting ``or violent'' after
``drug-related'';
(2) in paragraph (4)--
(A) by inserting ``and violent'' after ``drug-
related''; and
(B) by striking ``and'' at the end;
(3) in paragraph (5), by striking the period at the end and
inserting a semicolon; and
(4) by adding at the end the following new paragraphs:
``(6) the Federal Government should provide support for
effective safety and security measures to combat drug-related
and violent crime, primarily in and around public housing
projects with severe crime problems;
``(7) closer cooperation should be encouraged between public
and assisted housing managers, local law enforcement agencies,
[[Page 112 STAT. 2647]]
and residents in developing and implementing anti-crime
programs; and
``(8) anti-crime strategies should be improved through the
expansion of community-oriented policing initiatives.''.
(c) Authority to Make Grants.--Section 5123 of the Anti-Drug Abuse
Act of 1988 (42 U.S.C. 11902) is amended--
(1) by inserting ``(a) In General.--'' before ``The'';
(2) by striking ``tribally designated housing entities'' and
inserting ``recipients of assistance under the Native American
Housing Assistance and Self-Determination Act of 1996'';
(3) by inserting ``and violent'' after ``drug-related''; and
(4) by adding at the end the following new subsection:
``(b) Consortia.--Subject to terms and conditions established by the
Secretary, public housing agencies may form consortia for purposes of
applying for grants under this chapter.''.
(d) Eligible Activities.--Section 5124 of the Anti-Drug Abuse Act of
1988 (42 U.S.C. 11903) is amended--
(1) in subsection (a)--
(A) in paragraph (4)(A), by striking ``drug-related
crime on or about'' and inserting ``drug-related or
violent crime in and around'';
(B) in paragraph (6), by striking ``and'' at the
end;
(C) in paragraph (7)--
(i) by striking ``tribally designated housing
entity'' and inserting ``recipient of assistance
under the Native American Housing Assistance and
Self-Determination Act of 1996''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(8) by adding at the end the following new
paragraph:
``(8) sports programs and sports activities that serve
primarily youths from public or other federally assisted low-
income housing projects and are operated in conjunction with, or
in furtherance of, an organized program or plan designed to
reduce or eliminate drugs and drug-related problems in and
around such projects.''; and
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by
striking ``drug-related crime in'' and inserting ``drug-
related crime in and around''; and
(B) in paragraph (2), by striking ``drug-related
activity at'' and inserting ``drug-related or violent
activity in or around''.
(e) Applications.--Section 5125 of the Anti-Drug Abuse Act of 1988
(42 U.S.C. 11904) is amended--
(1) in subsection (a)--
(A) by striking ``tribally designated housing
entity'' and inserting ``recipient of assistance under
the Native American Housing Assistance and Self-
Determination Act of 1996'';
(B) by striking ``crime on the premises'' and
inserting ``or violent crime in and around''; and
(C) by inserting before the period at the end the
following: ``, which plan shall be coordinated with and
may be included in the public housing agency plan
submitted to the Secretary pursuant to section 5A of the
United States Housing Act of 1937'';
[[Page 112 STAT. 2648]]
(2) in subsection (b)--
(A) in the matter that precedes paragraph (1), by
striking ``Except as'' and all that follows through
``on--'' and inserting the following: ``The Secretary
shall approve applications under subsection (b) that are
not subject to a preference under subsection (b)(2)(A)
on the basis of thresholds or criteria such as--''; and
(B) in paragraph (1), by striking ``crime problem
in'' and inserting ``or violent crime problem in and
around'';
(3) in subsection (c)--
(A) in the matter preceding paragraph (1), by
striking ``subsection (b)'' and inserting ``subsection
(c)''; and
(B) in paragraph (2), by inserting ``or violent''
after ``drug-related'' each place it appears;
(4) in subsection (d), by striking ``subsection (b)'' and
inserting ``subsection (c)'';
(5) by redesignating subsections (b) through (d) as
subsections (c) through (e), respectively; and
(6) by inserting after subsection (a) the following new
subsection:
``(b) One-Year Renewable Grants.--
``(1) In general.--An eligible applicant that is a public
housing agency may apply for a 1-year grant under this chapter
that, subject to the availability of appropriated amounts, shall
be renewed annually for a period of not more than 4 additional
years, except that such renewal shall be contingent upon the
Secretary finding, upon an annual or more frequent review, that
the grantee agency is performing under the terms of the grant
and applicable laws in a satisfactory manner and meets such
other requirements as the Secretary may prescribe. The Secretary
may adjust the amount of any grant received or renewed under
this paragraph to take into account increases or decreases in
amounts appropriated for these purposes or such other factors as
the Secretary determines to be appropriate.
``(2) Eligibility and preference.--The Secretary may not
provide assistance under this chapter to an applicant that is a
public housing agency unless--
``(A) the agency will use the grants to continue or
expand activities eligible for assistance under this
chapter, as in effect immediately before the effective
date under section 503(a) of the Quality Housing and
Work Responsibility Act of 1998, in which case the
Secretary shall provide preference to such applicant;
except that preference under this subparagraph shall not
preclude selection by the Secretary of other meritorious
applications that address urgent or serious crime
problems nor be construed to require continuation of
activities determined by the Secretary to be unworthy of
continuation; or
``(B) the agency is in the class established under
paragraph (3).
``(3) Pha's <<NOTE: Regulations.>> having urgent or serious
crime problems.--The Secretary shall, by regulations issued
after notice and opportunity for public comment, set forth
criteria for establishing a class of public housing agencies
that have urgent or serious crime problems. The Secretary may
reserve a portion of the amount appropriated to carry out this
chapter in each
[[Page 112 STAT. 2649]]
fiscal year only for grants for public housing agencies in such
class, except that any amounts from such portion reserved that
are not obligated to agencies in the class shall be made
available only for agencies that are subject to a preference
under paragraph (2)(A).
``(4) Inapplicability to federally assisted low-income
housing.--The provisions of this subsection shall not apply to
federally assisted low-income housing.''.
(f ) Definitions.--Section 5126 of the Anti-Drug Abuse Act of 1988
(42 U.S.C. 11905) is amended by striking paragraph (5) and inserting the
following new paragraph:
``(5) Recipient.--The term `recipient', when used in
reference to the Native American Housing Assistance and Self-
Determination Act of 1996, has the meaning given such term in
section 4 of such Act.''.
(g) Reports, Monitoring, and Funding.--Chapter 2 of subtitle C of
title V of the Anti-Drug Abuse Act of 1988 <<NOTE: 42 USC 11906-
11909.>> is amended by striking sections 5127, 5128, 5129, and 5130 and
inserting the following new sections:
``SEC. 5127. <<NOTE: 42 USC 11906.>> REPORTS.
``(a) Grantee Reports.--The Secretary shall require grantees under
this chapter to provide periodic reports that include the obligation and
expenditure of grant funds, the progress made by the grantee in
implementing the plan described in section 5125(a), and any change in
the incidence of drug-related crime in projects assisted under this
chapter.
``(b) HUD <<NOTE: Deadline.>> Reports.--The Secretary shall submit a
report to the Congress not later than 18 months after the date of the
enactment of the Quality Housing and Work Responsibility Act of 1998
describing the system used to distribute funding to grantees under this
section, which shall include descriptions of--
``(1) the methodology used to distribute amounts made
available under this chapter among public housing agencies,
including provisions used to provide for renewals of ongoing
programs funded under this chapter; and
``(2) actions taken by the Secretary to ensure that amounts
made available under this chapter are not used to fund baseline
local government services, as described in section 5128(b).
``(c) Notice <<NOTE: Federal Register, publication.>> of Funding
Awards.--The Secretary shall cause to be published in the Federal
Register notice of all grant awards made pursuant to this chapter, which
shall identify the grantees and the amount of the grants. Such notice
shall be published not less frequently than annually.
``SEC. 5128. <<NOTE: 42 USC 11907.>> MONITORING.
``(a) In General.--The Secretary shall audit and monitor the
programs funded under this chapter to ensure that assistance provided
under this chapter is administered in accordance with the provisions of
this chapter.
``(b) Prohibition of Funding Baseline Services.--
``(1) In general.--Amounts provided under this chapter may
not be used to reimburse or support any local law enforcement
agency or unit of general local government for the provision of
services that are included in the baseline of services required
to be provided by any such entity pursuant to a local
cooperation agreement under section 5(e)(2) of the United States
Housing Act of 1937 or any provision of an annual
[[Page 112 STAT. 2650]]
contributions contract for payments in lieu of taxation pursuant
to section 6(d) of such Act.
``(2) Description.--Each public housing agency that receives
grant amounts under this chapter shall describe, in the report
under section 5127(a), such baseline of services for the unit of
general local government in which the jurisdiction of the agency
is located.
``(c) Enforcement.--The Secretary shall provide for the effective
enforcement of this section, which may include the use of on-site
monitoring, independent public audit requirements, certification by
local law enforcement or local government officials regarding the
performance of baseline services referred to in subsection (b), and
entering into agreements with the Attorney General to achieve
compliance, and verification of compliance, with the provisions of this
chapter.
``SEC. 5129. <<NOTE: 42 USC 11908.>> AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this chapter $310,000,000 for fiscal year 1999, and such sums as may
be necessary for fiscal years 2000, 2001, 2002, and 2003.
``(b) Set-Aside for Federally Assisted Low-Income Housing.--Of any
amounts made available in any fiscal year to carry out this chapter not
more than 6.25 percent shall be available for grants for federally
assisted low-income housing.
``(c) Set-Aside for Technical Assistance and Program Oversight.--Of
any amounts appropriated in any fiscal year to carry out this chapter,
amounts shall be available to the extent provided in appropriations Acts
to provide training, technical assistance, contract expertise, program
oversight, program assessment, execution, and other assistance for or on
behalf of public housing agencies, recipients of assistance under the
Native American Housing Assistance and Self-Determination Act of 1996,
resident organizations, and officials and employees of the Department
(including training and the cost of necessary travel for participants in
such training, by or to officials and employees of the Department and of
public housing agencies, and to residents and to other eligible
grantees). Assistance and other activities carried out using amounts
made available under this subsection may be provided directly or
indirectly by grants, contracts, or cooperative agreements.''.
SEC. 587. <<NOTE: 42 USC 11907 note.>> REVIEW OF DRUG ELIMINATION
PROGRAM CONTRACTS.
(a) Requirement.--The Secretary of Housing and Urban Development
shall investigate all security contracts awarded by grantees under the
Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C.
11901 et seq.) that are public housing agencies that own or operate more
than 4,500 public housing dwelling units--
(1) to determine whether the contractors under such
contracts have complied with all laws and regulations regarding
prohibition of discrimination in hiring practices;
(2) to determine whether such contracts were awarded in
accordance with the applicable laws and regulations regarding
the award of such contracts;
(3) to determine how many such contracts were awarded under
emergency contracting procedures; and
(4) to evaluate the effectiveness of the contracts.
(b) Report.--Not <<NOTE: Deadline.>> later than 180 days after the
date of the enactment of this Act, the Secretary shall complete the
investigation
[[Page 112 STAT. 2651]]
required under subsection (a) and submit a report to the Congress
regarding the findings under the investigation. With respect to each
such contract, the report shall (1) state whether the contract was made
and is operating, or was not made or is not operating, in full
compliance with applicable laws and regulations, and (2) for each
contract that the Secretary determines is in such compliance issue a
certification of such compliance by the Secretary of Housing and Urban
Development.
(c) Actions.--For each contract that is described in the report
under subsection (b) as not made or not operating in full compliance
with applicable laws and regulations, the Secretary of Housing and Urban
Development shall promptly take any actions available under law or
regulation that are necessary--
(1) to bring such contract into compliance; or
(2) to terminate the contract.
(d) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 588. PROHIBITION ON USE OF ASSISTANCE FOR EMPLOYMENT RELOCATION
ACTIVITIES.
Section 105 of the Housing and Community Development Act of 1974 (42
U.S.C. 5305) is amended by adding at the end the following new
subsection:
``(h) Prohibition on Use of Assistance for Employment Relocation
Activities.--Notwithstanding any other provision of law, no amount from
a grant under section 106 made in fiscal year 1999 or any succeeding
fiscal year may be used to assist directly in the relocation of any
industrial or commercial plant, facility, or operation, from 1 area to
another area, if the relocation is likely to result in a significant
loss of employment in the labor market area from which the relocation
occurs.''.
SEC. 589. <<NOTE: 42 USC 3608 note.>> TREATMENT OF OCCUPANCY STANDARDS.
(a) Establishment <<NOTE: Deadline. Federal Register,
publication. Notice.>> of Policy.--Not later than 60 days after the date
of the enactment of this Act, the Secretary of Housing and Urban
Development shall publish a notice in the Federal Register for effect
that takes effect upon publication and provides that the specific and
unmodified standards provided in the March 20, 1991, Memorandum from the
General Counsel of the Department of Housing and Urban Development to
all Regional Counsel shall be the policy of the Department of Housing
and Urban Development with respect to complaints of discrimination under
the Fair Housing Act (42 U.S.C. 3601 et seq.) on the basis of familial
status which involve an occupancy standard established by a housing
provider.
(b) Prohibition of National Standard.--The Secretary of Housing and
Urban Development shall not directly or indirectly establish a national
occupancy standard.
SEC. 590. <<NOTE: 42 USC 5301 note.>> INCOME ELIGIBILITY FOR HOME AND
CDBG PROGRAMS.
(a) In General.--The Secretary of Housing and Urban Development
shall, for not less than 10 jurisdictions that are metropolitan cities
or urban counties for purposes of title I of the Housing and Community
Development Act of 1974, grant exceptions not later than 90 days after
the date of the enactment of this Act for such jurisdictions that
provide that--
(1) for purposes of the HOME investment partnerships program
under title II of the Cranston-Gonzalez National
[[Page 112 STAT. 2652]]
Affordable Housing Act, the limitation based on percentage of
median income that is applicable under section 104(10),
214(1)(A), or 215(a)(1)(A) for any area of the jurisdiction
shall be the numerical percentage that is specified in such
section; and
(2) for purposes of the community development block grant
program under title I of the Housing and Community Development
Act of 1974, the limitation based on percentage of median income
that is applicable pursuant to section 102(a)(20) for any area
within the State or unit of general local government shall be
the numerical percentage that is specified in subparagraph (A)
of such section.
(b) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC 591. <<NOTE: 42 USC 3535 note.>> REPORT ON SINGLE FAMILY AND
MULTIFAMILY HOMES.
(a) In <<NOTE: Deadline.>> General.--Not later than 12 months after
the date of the enactment of this Act, the Inspector General of the
Department of Housing and Urban Development shall submit to the Congress
a report, which shall include information relating to--
(1) with respect to 1- to 4-family dwellings owned by the
Department of Housing and Urban Development, on a monthly
average basis--
(A) the total number of units in those dwellings;
(B) the number and percentage of units in those
dwellings that are unoccupied, and their average period
of vacancy, and the number and percentage of units in
those dwellings that have been unoccupied for more than
1 year, as of that date; and
(C) the number and percentage of units in those
projects that are determined by the Inspector General to
be substandard, based on any--
(i) lack of hot or cold piped water;
(ii) lack of working toilets;
(iii) regular and prolonged breakdowns in
heating;
(iv) dangerous electrical problems;
(v) unsafe hallways or stairways;
(vi) leaking roofs, windows, or pipes;
(vii) open holes in walls and ceilings; and
(viii) indications of rodent infestation; and
(2) with respect to multifamily housing projects (as that
term is defined in section 203 of the Housing and Community
Development Amendments of 1978) owned by the Department of
Housing and Urban Development on a monthly average basis--
(A) the total number of units in those projects;
(B) the number and percentage of units in those
projects that are unoccupied, and their average period
of vacancy, and the number and percentage of units in
those projects that have been unoccupied for more than 1
year, as of that date; and
(C) the number and percentage of units in those
projects that are determined by the Inspector General to
be substandard, based on any--
(i) lack of hot or cold piped water;
(ii) lack of working toilets;
(iii) regular and prolonged breakdowns in
heating;
[[Page 112 STAT. 2653]]
(iv) dangerous electrical problems;
(v) unsafe hallways or stairways;
(vi) leaking roofs, windows, or pipes;
(vii) open holes in walls and ceilings; and
(viii) indications of rodent infestation; and
(3) the Department's plans and operations to address
vacancies and substandard physical conditions described in
paragraphs (1) and (2).
(b) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 592. USE OF ASSISTED HOUSING BY ALIENS.
(a) In General.--Section 214 of the Housing and Community
Development Act of 1980 (42 U.S.C. 1436a) is amended--
(1) in subsection (b)(2), by striking ``Secretary of Housing
and Urban Development'' and inserting ``applicable Secretary'';
(2) in subsection (c)(1)(B), by moving clauses (ii) and
(iii) 2 ems to the left;
(3) in subsection (d)--
(A) in paragraph (1)(A)--
(i) by striking ``Secretary of Housing and
Urban Development'' and inserting ``applicable
Secretary''; and
(ii) by striking ``the Secretary'' and
inserting ``the applicable Secretary'';
(B) in paragraph (2), in the matter following
subparagraph (B)--
(i) by inserting ``applicable'' before
``Secretary''; and
(ii) by moving such matter (as so amended by
clause (i)) 2 ems to the right;
(C) in paragraph (4)(B)(ii), by inserting
``applicable'' before ``Secretary'';
(D) in paragraph (5), by striking ``the Secretary''
and inserting ``the applicable Secretary''; and
(E) in paragraph (6), by inserting ``applicable''
before ``Secretary'';
(4) in subsection (h) (as added by section 576 of the
Illegal Immigration Reform and Immigrant Responsibility Act of
1996 (division C of Public Law 104-208))--
(A) in paragraph (1)--
(i) by striking ``Except in the case of an
election under paragraph (2)(A), no'' and
inserting ``No'';
(ii) by striking ``this section'' and
inserting ``subsection (d)''; and
(iii) by inserting ``applicable'' before
``Secretary''; and
(B) in paragraph (2)--
(i) by striking subparagraph (A) and inserting
the following new subparagraph:
``(A) may, notwithstanding paragraph (1) of this
subsection, elect not to affirmatively establish and
verify eligibility before providing financial
assistance''; and
(ii) in subparagraph (B), by striking ``in
complying with this section'' and inserting ``in
carrying out subsection (d)''; and
(5) by redesignating subsection (h) (as amended by paragraph
(4)) as subsection (i).
[[Page 112 STAT. 2654]]
(b) Effective <<NOTE: 42 USC 1436a note.>> Date.--The amendments
made by this section are made on, and shall apply beginning upon, the
date of the enactment of this Act.
SEC. 593. PROTECTION OF SENIOR HOMEOWNERS UNDER REVERSE MORTGAGE
PROGRAM.
(a) Mortgage Insurance Authority.--Section 255(g) of the National
Housing Act (12 U.S.C. 1715z-20(g)) is amended by striking the first 2
sentences and inserting the following new sentence: ``The aggregate
number of mortgages insured under this section may not exceed
150,000.''.
(b) Other Approaches to Consumer Education.--Section 255(f ) of the
National Housing Act (12 U.S.C. 1715z-20(f )) is amended by adding after
paragraph (5) the following:
``The Secretary shall consult with consumer groups, industry
representatives, representatives of counseling organizations, and other
interested parties to identify alternative approaches to providing
consumer information required by this subsection that may be feasible
and desirable for home equity conversion mortgages insured under this
section and other types of reverse mortgages. The Secretary may, in lieu
of providing the consumer education required by this subsection, adopt
alternative approaches to consumer education that may be developed as a
result of such consultations, but only if the alternative approaches
provide all of the information specified in this subsection.''.
(c) Funding for Counseling and Consumer Education and Outreach.--
Section 255 of the National Housing Act (12 U.S.C. 1715z-20) is amended
by adding at the end the following new subsection:
``(l) Funding for Counseling and Consumer Education and Outreach.--
Of any amounts made available for any of fiscal years 2000 through 2003
for housing counseling under section 106 of the Housing and Urban
Development Act of 1968, up to a total of $1,000,000 shall be available
to the Secretary in each such fiscal year, in such amounts as the
Secretary determines appropriate, for the following purposes in
connection with home equity conversion mortgages insured under this
section:
``(1) Counseling.--For housing counseling authorized by
section 106 of the Housing and Urban Development Act of 1968.
``(2) Consumer education.--For transfer to the departmental
salaries and expenses account for consumer education and
outreach activities.''.
(d) Conforming Amendments.--Section 255 of the National Housing Act
(12 U.S.C. 1715z-20) is amended--
(1) in the section heading, by striking ``demonstration
program of'';
(2) in subsections (a) and (i)(1), by striking
``demonstration'' each place it appears;
(3) in subsection (a)--
(A) in paragraph (1), by inserting ``and'' after the
semicolon at the end;
(B) in paragraph (2), by striking ``; and'' at the
end and inserting a period; and
(C) by striking paragraph (3);
(4) by striking subsection (k) (relating to reports to
Congress); and
[[Page 112 STAT. 2655]]
(5) by redesignating subsection (l) (as added by subsection
(c) of this section) as subsection (k).
(e) Disclosure Requirements and Prohibition of Funding of
Unnecessary or Excessive Costs.--
(1) In general.--Section 255(d) of the National Housing Act
(12 U.S.C. 1715z-20(d)) is amended--
(A) in paragraph (2)--
(i) in subparagraph (B), by striking ``and''
at the end;
(ii) by redesignating subparagraph (C) as
subparagraph (D); and
(iii) by inserting after subparagraph (B) the
following:
``(C) has received full disclosure, as prescribed by
the Secretary, of all costs charged to the mortgagor,
including costs of estate planning, financial advice,
and other services that are related to the mortgage but
are not required to obtain the mortgage, which
disclosure shall clearly state which charges are
required to obtain the mortgage and which are not
required to obtain the mortgage; and''
(B) in paragraph (9)(F), by striking ``and'';
(C) in paragraph (10), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(11) have been made with such restrictions as the
Secretary determines to be appropriate to ensure that the
mortgagor does not fund any unnecessary or excessive costs for
obtaining the mortgage, including any costs of estate planning,
financial advice, or other related services.''.
(2) <<NOTE: 12 USC 1715z-20 note.>> Implementation.--
(A) Notice.--The Secretary of Housing and Urban
Development shall, by interim notice, implement the
amendments made by paragraph (1) in an expeditious
manner, as determined by the Secretary. Such notice
shall not be effective after the date of the
effectiveness of the final regulations issued under
subparagraph (B) of this paragraph.
(B) Regulations.--The <<NOTE: Deadline.>> Secretary
shall, not later than the expiration of the 90-day
period beginning on the date of the enactment of this
Act, issue final regulations to implement the amendments
made by paragraph (1). Such regulations shall be issued
only after notice and opportunity for public comment
pursuant to the provisions of section 553 of title 5,
United States Code (notwithstanding subsections (a)(2)
and (b)(3)(B) of such section).
(f ) Effective <<NOTE: 12 USC 1715z-20 note.>> Date.--This section
shall take effect on, and the amendments made by this section are made
on, and shall apply beginning upon, the date of the enactment of this
Act.
SEC. 594. HOUSING COUNSELING.
(a) Extension of Emergency Homeownership Counseling.--Section
106(c)(9) of the Housing and Urban Development Act of 1968 (12 U.S.C.
1701x(c)(9)) is amended by striking ``September 30, 1994'' and inserting
``September 30, 2000''.
(b) Notification of Delinquency on Veterans Home Loans.--
[[Page 112 STAT. 2656]]
Subparagraph (C) of section 106(c)(5) of the Housing and Urban
Development Act of 1968 <<NOTE: 12 USC 1701x.>> is amended to read as
follows:
``(C) Notification.--Notification under subparagraph
(A) shall not be required with respect to any loan for
which the eligible homeowner pays the amount overdue
before the expiration of the 45-day period under
subparagraph (B)(ii).''.
(c) Effective <<NOTE: 12 USC 1701x note.>> Date.--The amendments
made by this section are made on, and shall apply beginning upon, the
date of the enactment of this Act.
SEC. 595. NATIVE AMERICAN HOUSING ASSISTANCE.
(a) Subsidy Layering Certification.--Section 206 of the Native
American Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4136) is amended--
(1) by striking ``certification by the Secretary'' and
inserting ``certification by a recipient to the Secretary''; and
(2) by striking ``any housing project'' and inserting ``the
housing project involved''.
(b) Inclusion of Homebuyer Selection Policies and Criteria.--Section
207(b) of the Native American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4137(b)) is amended--
(1) by striking ``Tenant Selection.--'' and inserting
``Tenant and Homebuyer Selection.--'';
(2) in the matter preceding paragraph (1), by inserting
``and homebuyer'' after ``tenant''; and
(3) in paragraph (3)(A), by inserting ``and homebuyers''
after ``tenants''.
(c) Repayment of Grant Amounts for Violation of Affordable Housing
Requirement.--Section 209 of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4139) is amended by striking
``section 205(2)'' and inserting ``section 205(a)(2)''.
(d) Amendment to United States Housing Act of 1937.--Section 7 of
the United States Housing Act of 1937 (42 U.S.C. 1437e) is amended by
striking subsection (h).
(e) Miscellaneous.--
(1) Definition of indian areas.--Section 4(10) of the Native
American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4103(10)) is amended to read as follows:
``(10) Indian area.--The term `Indian area' means the area
within which an Indian tribe or a tribally designated housing
entity, as authorized by 1 or more Indian tribes, provides
assistance under this Act for affordable housing.''.
``(2) Cross-reference.--Section 4(12)(C)(i)(II) of the
Native American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4103(12)(C)(i)(II)) is amended by striking
``section 107'' and inserting ``section 705''.
(3) Local cooperation agreements.--Section 101(c) of the
Native American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4111(c)) is amended to read as follows:
``(c) Local Cooperation Agreement.--Notwithstanding any other
provision of this Act, grant amounts provided under this Act on behalf
of an Indian tribe may not be used for rental or
[[Page 112 STAT. 2657]]
lease-purchase homeownership units that are owned by the recipient for
the tribe unless the governing body of the locality within which the
property subject to the development activities to be assisted with the
grant amounts is or will be situated has entered into an agreement with
the recipient for the tribe providing for local cooperation required by
the Secretary pursuant to this Act.''.
(4) Exemption from taxation.--Section 101(d) of the Native
American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4111(d)) is amended--
``(A) by striking the subsection designation and
subsection heading and all that follows through the end
of paragraph (1) and inserting the following:
``(d) Exemption From Taxation.--Notwithstanding any other provision
of this Act, grant amounts provided under this Act on behalf of an
Indian tribe may not be used for affordable housing activities under
this Act for rental or lease-purchase dwelling units developed under the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) or with
amounts provided under this Act that are owned by the recipient for the
tribe unless--
``(1) such dwelling units (which, in the case of units in a
multi-unit project, shall be exclusive of any portions of the
project not developed under the United States Housing Act of
1937 or with amounts provided under this Act) are exempt from
all real and personal property taxes levied or imposed by any
State, tribe, city, county, or other political subdivision;
and''; and
(B) in paragraph (2), in the matter preceding
subparagraph (A), by inserting ``for the tribe'' after
``the recipient''.
(5) Submission of indian housing plan.--Section 102(a) of
the Native American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4112(a)) is amended--
(A) in paragraph (1), by inserting ``(A)'' after
``(1)'';
(B) in paragraph (1)(A), as so designated by
subparagraph (A) of this paragraph, by adding ``or'' at
the end;
(C) by striking ``(2)'' and inserting ``(B)''; and
(D) by striking ``(3)'' and inserting ``(2)''.
(6) Clarification.--Section 103(c)(3) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4113(c)(3)) is amended by inserting ``not'' before
``prohibited''.
(7) Applicability of provisions of civil rights.--Section
201(b)(5) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4131(b)(5)) is amended--
(A) by striking ``Indian tribes'' and inserting
``federally recognized tribes and the tribally
designated housing entities of those tribes''; and
(B) by striking ``under this subsection'' and
inserting ``under this Act''.
(8) Eligibility.--Section 205(a)(1) of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4135(a)(1)) is amended--
(A) in subparagraph (A), by striking ``and'' at the
end; and
(B) by striking subparagraph (B) and inserting the
following:
[[Page 112 STAT. 2658]]
``(B) in the case of a contract to purchase existing
housing, is made available for purchase only by a family
that is a low-income family at the time of purchase;
``(C) in the case of a lease-purchase agreement for
existing housing or for housing to be constructed, is
made available for lease-purchase only by a family that
is a low-income family at the time the agreement is
entered into; and
``(D) in the case of a contract to purchase housing
to be constructed, is made available for purchase only
by a family that is a low-income family at the time the
contract is entered into; and''.
(9) Tenant selection.--Section 207(b)(3)(B) of the Native
American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4137(b)(3)(B)) is amended by striking ``of any
rejected applicant of the grounds for any rejection'' and
inserting ``to any rejected applicant of that rejection and the
grounds for that rejection''.
(10) Availability of records.--Section 208 of the Native
American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4138) is amended--
(A) in subsection (a), by striking ``paragraph (2)''
and inserting ``subsection (b)''; and
(B) in subsection (b), by striking ``paragraph (1)''
and inserting ``subsection (a)''.
(11) IHP requirement.--Section 184(b)(2) of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715z-13a(b)(2)) is
amended by striking ``that is under the jurisdiction of an
Indian tribe'' and all that follows before the period at the
end.
(12) Authorization of Appropriations.--Section 184(i)(5)(C)
of the Housing and Community Development Act of 1992 (12 U.S.C.
1715z-13a(i)(5)(C)) is amended by striking ``note'' and
inserting ``not''.
(13) Environmental review under the indian housing loan
guarantee program.--Section 184 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
(A) by redesignating subsection (k) as subsection
(l); and
(B) by inserting after subsection ( j) the
following:
``(k) Environmental Review.--For purposes of environmental, review,
decisionmaking, and action under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) and any other law that furthers the
purposes of that Act, a loan guarantee under this section shall--
``(1) be treated as a grant under the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4101 et seq.); and
``(2) be subject to the regulations promulgated by the
Secretary to carry out section 105 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4115).''.
(14) Public availability of information.--
(A) In general.--Title IV of the Native American
Housing Assistance and Self-Determination Act of 1996
[[Page 112 STAT. 2659]]
(25 U.S.C. 4161 et seq.) is amended by adding at the end
the following:
``SEC. 408. <<NOTE: 25 USC 4168.>> PUBLIC AVAILABILITY OF INFORMATION.
``Each recipient shall make any housing plan, policy, or annual
report prepared by the recipient available to the general public.''.
(B) Table of contents.--Section 1(b) of the Native
American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4101 note) is amended in the table of
contents by inserting after the item relating to section
407 the following:
``Sec. 408. Public availability of information.''.
(15) Ineligibility of Indian Tribes.--Section 460 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12899h-1) is amended by striking ``fiscal year 1997'' and
inserting ``fiscal year 1998''.
(16) Treatment of previous amendments.--Section 402 of The
Balanced Budget Downpayment Act, <<NOTE: 42 USC 1437 note.>> I
(42 U.S.C. 1437a note) is amended by striking subsection (e).
(f ) Effective <<NOTE: 12 USC 1715z-13a note.>> Date.--The
amendments made by this section are made and shall apply beginning upon
the date of the enactment of this Act.
SEC. 596. CDBG PUBLIC SERVICES CAP.
(a) In General.--Section 105(a)(8) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by striking
``1998'' and inserting ``2000''.
(b) Effective <<NOTE: 42 USC 5305 note.>> Date.--The amendment made
by this section is made on, and shall apply beginning upon, the date of
the enactment of this Act.
SEC. 597. MODERATE REHABILITATION PROGRAM.
(a) Reprogramming.--Notwithstanding any other provision of law, but
only to the extent specifically provided in advance in a subsequent
appropriations Act, the Secretary of Housing and Urban Development shall
reprogram funds under contracts NY36K113004 and NY36K113005 of the
Department of Housing and Urban Development and shall allocate such
funds to the City of New Rochelle, New York. Such allocation shall be
consistent with the requirements of the HOME Investment Partnerships
Act. This section shall <<NOTE: Effective date.>> take effect on the
date of the enactment of this Act.
(b) Exception Projects.--Section 524(a)(2) of the Multifamily
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended--
(1) by inserting ``and subject to section 516 of this
subtitle'' after ``Notwithstanding paragraph (1)''; and
(2) by striking ``the base rent adjusted by an operating
cost adjustment factor established by the Secretary'' and
inserting ``the lesser of existing rents, adjusted by an
operating cost adjustment factor established by the Secretary,
fair market rents (less any amounts allowed for tenant-purchased
utilities), or comparable market rents for the market area''.
(c) Effective <<NOTE: 42 USC 1437f note.>> Date.--This section shall
take effect on, and the amendments made by this section are made on, and
shall apply beginning upon, the date of the enactment of this Act.
[[Page 112 STAT. 2660]]
SEC. 598. NATIONAL CITIES IN SCHOOLS PROGRAM.
From amounts that are or have been recaptured in the Annual
Contributions for Assisted Housing account, before any rescissions of
such amounts, $5,000,000, shall be transferred to the National Cities in
Schools Community Development Program account, to remain available until
expended, that the Secretary of Housing and Urban Development shall make
available to carry out the National Cities in Schools Community
Development Program under section 930 of the Housing and Community
Development Act of 1992 (Public Law 102-550, 106 Stat. 3672,
3887). <<NOTE: Effective date.>> This section shall take effect on the
date of the enactment of this Act.
SEC. 599. TENANT PARTICIPATION IN MULTIFAMILY HOUSING PROJECTS.
(a) In General.--The last sentence of subsection (a) of section 202
of the Housing and Community Development Amendments of 1978 (12 U.S.C.
1715z-1b(a)) is amended by inserting before the period at the end the
following: ``, or a project which receives project-based assistance
under section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) or enhanced vouchers under the Low-Income Housing Preservation
and Resident Homeownership Act of 1990, the provisions of the Emergency
Low Income Housing Preservation Act of 1987, or the Multifamily Assisted
Housing Reform and Affordability Act of 1997''.
(b) Applicability.--The <<NOTE: 12 USC 1715z-1b note.>> amendment
made by this section is made on, and shall apply beginning upon, the
date of the enactment of this Act.
SEC. 599A. CLARIFICATION REGARDING RECREATIONAL VEHICLES.
(a) In General.--Section 603(6) of the Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5402(6)) is
amended by inserting before the semicolon at the end the following: ``;
and except that such term shall not include any self-propelled
recreational vehicle''.
(b) Applicability.--The <<NOTE: 42 USC 5402 note.>> amendment made
by this section is made on, and shall apply beginning upon, the date of
the enactment of this Act.
SEC. 599B. DETERMINATION OF LOW-INCOME ELIGIBILITY FOR HOMEOWNERSHIP
ASSISTANCE.
(a) Income Targeting.--Section 214(2) of the Cranston-Gonzalez
National Affordable Housing Act <<NOTE: 42 USC 12744.>> is amended by
striking ``at the time of occupancy or at the time funds are invested,
whichever is later''.
(b) Qualification as Affordable Housing.--Section 215(b)(2) of such
Act is <<NOTE: 42 USC 12745.>> amended to read as follows:
``(2) is the principal residence of an owner whose family
qualifies as a low-income family--
``(A) in the case of a contract to purchase existing
housing, at the time of purchase;
``(B) in the case of a lease-purchase agreement for
existing housing or for housing to be constructed, at
the time the agreement is signed; or
``(C) in the case of a contract to purchase housing
to be constructed, at the time the contract is
signed;''.
(c) Applicability.--The <<NOTE: 42 USC 12744 note.>> amendments made
by this section are made on, and shall apply beginning upon, the date of
the enactment of this Act.
[[Page 112 STAT. 2661]]
SEC. 599C. AMENDMENTS TO RURAL HOUSING PROGRAMS.
(a) Permanent Extension of Underserved Areas Program.--Section 509(f
)(4)(A) of the Housing Act of 1949 (42 U.S.C. 1479(f )(4)(A)) is
amended--
(1) in the first sentence, by striking ``fiscal year 1998''
and inserting ``each fiscal year''; and
(2) in the second sentence, by striking ``such fiscal year''
and inserting ``each fiscal year''.
(b) Permanent Extension of Section 515 Program.--
(1) Authority to make loans.--Section 515(b) of the Housing
Act of 1949 (42 U.S.C. 1485(b)(4)) is amended--
(A) by striking paragraph (4); and
(B) by redesignating paragraphs (5), (6), and (7) as
paragraphs (4), (5), and (6), respectively.
(2) Set-aside for nonprofit entities.--The first sentence of
section 515(w)(1) of the Housing Act of 1949 (42 U.S.C.
1485(w)(1)) is amended by striking ``fiscal year 1998'' and
inserting ``each fiscal year''.
(c) Loan Guarantee Program for Multifamily Rental Housing in Rural
Areas.--Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) is
amended--
(1) in subsection (t), by striking ``fiscal year 1998'' and
inserting ``each fiscal year''; and
(2) by striking subsection (u) and inserting the following
new subsection:
``(u) Tax-Exempt Financing.--The Secretary may not deny a guarantee
under this section on the basis that the interest on the loan or on an
obligation supporting the loan for which a guarantee is sought is exempt
from inclusion in gross income for purposes of chapter I of the Internal
Revenue Code of 1986.''.
(d) Farm Labor Housing Eligibility for Low-Income Housing Tax Credit
Financing.--The first sentence of section 514(a) of the Housing Act of
1949 (42 U.S.C. 1484(a)) is amended by inserting ``, or any nonprofit
limited partnership in which the general partner is a nonprofit
entity,'' after ``private nonprofit organization''.
(e) Optional Conversion of Rental Assistance Payments to Operating
Subsidy for Migrant Farmworker Projects.--
(1) In <<NOTE: 42 USC 1490a.>> general.--Section 521(a) of
the Housing Act of 1949 (42 U.S.C. 1490(a)) is amended by adding
at the end the following new paragraph:
``(5) Operating assistance for migrant farmworker projects.--
``(A) Authority.--In the case of housing (and related
facilities) for migrant farmworkers provided or assisted with a
loan under section 514 or a grant under section 516, the
Secretary may, at the request of the owner of the project, use
amounts provided for rental assistance payments under paragraph
(2) to provide assistance for the costs of operating the
project. Any project assisted under this paragraph may not
receive rental assistance under paragraph (2).
``(B) Amount.--In any fiscal year, the assistance provided
under this paragraph for any project shall not exceed an amount
equal to 90 percent of the operating costs for the project for
the year, as determined by the Secretary. The amount of
assistance to be provided for a project under this paragraph
shall be an amount that makes units in the project available to
[[Page 112 STAT. 2662]]
migrant farmworkers in the area of the project at rates not
exceeding 30 percent of the monthly adjusted incomes of such
farmworkers, based on the prevailing incomes of such farmworkers
in the area.
``(C) Submission of information.--The owner of a project
assisted under this paragraph shall be required to provide to
the Secretary, at least annually, a budget of operating expenses
and estimated rental income, which the Secretary may use to
determine the amount of assistance for the project.
``(D) Definitions.--For purposes of this paragraph, the
following definitions shall apply:
``(i) The term `migrant farmworker' has the same
meaning given such term in section 516(k)(7).
``(ii) The term `operating cost' means expenses
incurred in operating a project, including expenses
for--
``(I) administration, maintenance, repair, and
security of the project;
``(II) utilities, fuel, furnishings, and
equipment for the project; and
``(III) maintaining adequate reserve funds for
the project.''.
(2) Conforming amendments.--Title V of the Housing Act of
1949 (42 U.S.C. 1471 et seq.) is amended--
(A) <<NOTE: 42 USC 1472.>> in section 502--
(i) in subsection (c)(1)(A)(i), by striking
``or (a)(2)'' and inserting ``, (a)(2), or (5)'';
(ii) in subsection (c)(4)(B)(ii), by inserting
before the period at the end the following: ``, or
additional assistance or an increase in assistance
provided under section 521(a)(5)'';
(iii) in subsection (c)(4)(B)(iii), by ``or
521(a)(5)'' after ``section 521(a)(2)'';
(iv) in subsection (c)(4)(B)(v), by inserting
before the period at the end the following: ``, or
current tenants of projects not assisted under
section 521(a)(5)'';
(v) in subsection (c)(5)(C)(iii)--
(I) by striking the second comma;
and
(II) by inserting ``or any
assistance payments received under
section 521(a)(5),'' before ``with
respect''; and
(vi) in subsection (c)(5)(D), by inserting
before the period at the end the following: ``or,
in the case of housing assisted under section
521(a)(5), does not exceed the rents established
for the project under such section'';
(B) in the second sentence of subparagraph (A) of
section 509(f )(4), <<NOTE: 42 USC 1479.>> by striking
``an amount of section 521 rental assistance'' and
inserting ``from amounts available for assistance under
paragraphs (2) and (5) of section 521(a), an amount'';
(C) <<NOTE: 42 USC 1483.>> in section 513(c)(2)--
(i) in the matter preceding subparagraph (A),
by inserting ``or contracts for operating
assistance under section 521(a)(5)'' after
``section 521(a)(2)(A)'';
(ii) in subparagraph (A), by inserting ``or
operating assistance contracts'' after
``contracts'';
[[Page 112 STAT. 2663]]
(iii) in subparagraph (B), by striking
``rental'' each place it appears; and
(iv) in subparagraph (C), by inserting ``or
operating assistance contracts'' after
``contracts'';
(D) in <<NOTE: 42 USC 1490a.>> section
521(a)(2)(B)--
(i) by inserting ``or paragraph (5)'' after
``this paragraph''; and
(ii) by striking ``which shall'' and all that
follows through the period at the end and
inserting the following: ``. The budget (and the
income, in the case of a project assisted under
this paragraph) shall be used to determine the
amount of the assistance for each project.'';
(E) in section 521(c), by striking ``subsection
(a)(2)'' and inserting ``subsections (a)(2) and
(a)(5)'';
(F) in section 521(e), by inserting after
``recipient'' the following: ``or any tenant in a
project assisted under subsection (a)(5)''; and
(G) in section 530, <<NOTE: 42 USC 1490j.>> by
striking ``rental assistance payments with respect to
such project under section 521(a)(2)(A)'' and inserting
``assistance payments with respect to such project under
section 521(a)(2)(A) or 521(a)(5)''.
(f ) Rural Housing Guaranteed Loans.--Section 502(h)(6)(C) of the
Housing Act of 1949 (42 U.S.C. 1472(h)(6)(C)) is amended by striking ``,
subject to the maximum dollar amount limitation of section 203(b)(2) of
the National Housing Act'' each place it appears.
(g) Applicability.--The <<NOTE: 42 USC 1472 note.>> amendments made
by this section are made on, and shall apply beginning upon, the date of
the enactment of this Act.
SEC. 599D. REAUTHORIZATION OF NATIONAL FLOOD INSURANCE PROGRAM.
(a) Program Expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``September 30, 1998'' and inserting ``September 30, 2001''.
(b) Emergency Implementation of Program.--Section 1336(a) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4056(a)) is amended by
striking ``September 30, 1998'' and inserting ``September 30, 2001''.
(c) Applicability.--The <<NOTE: 42 USC 4026 note.>> amendments made
by this section are made on, and shall apply beginning upon, the date of
the enactment of this Act.
SEC. 599E. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS
(a) National Competitive Grants.--Section 11 of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is
amended--
(1) in subsection (a), by striking ``to--'' and all that
follows and inserting the following: ``to national and regional
organizations and consortia that have experience in providing or
facilitating self-help housing homeownership opportunities.'';
(2) in subsection (b)--
(A) in paragraph (4), by striking ``Habitat for
Humanity, its affiliates, and other''; and
[[Page 112 STAT. 2664]]
(B) in paragraph (5), by striking ``similar to the
homeownership program carried out by Habitat for
Humanity International,'';
(3) by striking subsection (c) and inserting the following
new subsection:
``(c) National Competition.--The Secretary shall select
organizations and consortia referred to in subsection (a) to receive
grants through a national competitive process, which the Secretary shall
establish.'';
(4) in subsection (e), by striking paragraph (2) and
inserting the following new paragraph:
``(2) Assistance to affiliates.--Any organization or
consortia that receives a grant under this section may use
amounts in the fund established for such organization or
consortia pursuant to paragraph (1) for the purposes under
subsection (d) by providing assistance from the fund to local
affiliates of such organization or consoria.'';
(5) in subsection (f )--
(A) in the subsection heading, by striking ``to
Other Organizations''; and
(B) in the matter preceding paragraph (1), by
striking ``subsection (a)(2)'' and inserting
``subsection (a)'';
(6) by striking subsection (g);
(7) in subsection (h)--
(A) by striking the first sentence; and
(B) in the second sentence, by striking ``subsection
(a)(2)'' and inserting ``subsection (a)'';
(8) in subsection (i)(5), by inserting ``(or, in the case of
grant amounts from amounts made available for fiscal year 1996
to carry out this section, within 36 months)'' before the comma;
(9) in subsection ( j), by inserting ``(or, in the case of
grant amounts from amounts made available for fiscal year 1996
to carry out this section, within 36 months)'' before the second
comma;
(10) in subsection (k)(1), by striking ``under subsection
(a)(1) or (a)(2)'';
(11) by redesignating subsection (p) as subsection (q);
(12) by inserting after subsection (o) the following new
subsection:
``(p) Authorization of Appropriations.--To carry out this section,
there are authorized to be appropriated for fiscal years 1999 and 2000
such sums as may be necessary.''; and
(13) in the section heading, by striking ``habitat for
humanity and other''.
(b) Savings <<NOTE: Applicability. 42 USC 12805
note.>> Provisions.--Notwithstanding the amendments made by subsection
(a), any grant under section 11 of the Housing Opportunity Program
Extension Act of 1996 (42 U.S.C. 12805 note) from amounts appropriated
in fiscal year 1998 or any prior fiscal year shall be governed by the
provisions of such section 11 as in effect immediately before the
enactment of this Act, except that the amendments made by paragraphs (8)
and (9) of subsection (a) of this section shall apply to such grants.
(c) Effective <<NOTE: 42 USC 12805 note.>> Date.--This section shall
take effect, and the amendments made by this section are made on, and
shall apply beginning upon, the date of the enactment of this Act.
[[Page 112 STAT. 2665]]
SEC. 599F. SPECIAL MORTGAGE INSURANCE ASSISTANCE.
(a) In General.--Section 237 of the National Housing Act (12 U.S.C.
1715z-2) is amended--
(1) in subsection (b), by inserting ``not more than 26
percent of the total principal obligation (including such
initial service charges, and such appraisal, inspection, and
other fees as the Secretary shall approve) of'' before ``any
mortgage'';
(2) in paragraph (c)(2) by striking ``$18,000:'' and all
that follows through the end of the paragraph and inserting
``$70,000;'';
(3) in paragraph (c)(3)--
(A) by inserting ``, prior to and during the 12
months immediately following the purchase of the
property, from a community development financial
institution under section 103(5) of the Community
Development Banking and Financial Institutions Act of
1994'' after ``budget, debt management, and related
counseling''; and
(B) by striking ``and'' at the end;
(4) in paragraph (c)(4)--
(A) by striking ``25'' and inserting ``36''; and
(B) by striking the period and inserting ``; and'';
(5) in subsection (c), by adding at the end the following
new paragraphs:
``(5) require the mortgagor to be subject, if necessary, to
a default mitigation effort undertaken by an intermediary
community development financial institution under section 103(5)
of the Community Development Banking and Financial Institutions
Act of 1994, that is acting as a sponsor and pass-through of
insurance under section 203 and is approved by the Secretary;
``(6) involve a total principal obligation (including such
initial service charges, and such appraisal, inspection, and
other fees as the Secretary shall approve) that is not more than
90 percent of the value of the property for which the mortgage
is provided; and
``(7) involve a total principal obligation (including such
initial service charges, and such appraisal, inspection, and
other fees as the Secretary shall approve) in which the
mortgagor has equity (as defined by the Secretary) of not less
than 10 percent and such equity shall be subordinate to the
interest of the Secretary in the mortgaged property.'';
(6) in subsection (d), by striking ``and (2)'' and inserting
``(2) to families living in empowerment zones and enterprise
communities (as those terms are defined in section 1393(b) of
the Internal Revenue Code of 1986 (26 U.S.C. 1393(b)) who are
eligible for homeownership assistance, and (3)'';
(7) in subsection (e), by striking ``public or private
organizations'' and inserting ``community development financial
institutions under section 103(5) of the Community Development
Banking and Financial Institutions Act of 1994'';
(8) in subsection (f ), by striking ``all mortgages'' and
inserting ``the portions of mortgages'';
(9) by redesignating subsection (g) as subsection ( j); and
(10) by inserting after subsection (f ), the following new
subsections:
``(g) Mortgages insured under this section shall be subject to an
insurance premium fee of not more than 1.25 percent of the
[[Page 112 STAT. 2666]]
total mortgage principal obligation (including such initial service
charges, and such appraisal, inspection, and other fees as the Secretary
shall approve).
``(h) <<NOTE: Contracts.>> Before insuring a mortgage under this
section, the Secretary shall enter into such contracts or other
agreements as may be necessary to ensure that the mortgagee or other
holder of the mortgage shall assume not less than 10 percent and not
more than 50 percent of any loss on the insured mortgage, subject to any
reasonable limit on the liability of the mortgagee or holder of the
mortgage that may be specified in the event of unusual or catastrophic
losses that may be incurred by any one mortgagee or mortgage holder.
``(i) No guarantees may be issued under section 306(g) for the
timely payment of interest or principal on securities backed, in whole
or in part, by mortgages insured under this section.''.
(b) Effective <<NOTE: 12 USC 1715z-2 note.>> Date.--The amendments
under by this section are made on, and shall apply beginning upon, the
date of the enactment of this Act.
SEC. 599G. <<NOTE: 12 USC 1701z-1 note.>> REHABILITATION DEMONSTRATION
GRANT PROGRAM.
(a) In General.--The Secretary of Housing and Urban Development
shall, to the extent amounts are provided in appropriation Acts to carry
out this section, carry out a program to demonstrate the effectiveness
of making grants for rehabilitation of single family housing located
within 10 demonstration areas designated by the Secretary. Of the areas
designated by the Secretary under this section--
(1) 6 shall be areas that have primarily urban
characteristics;
(2) 3 shall be areas that are outside of a metropolitan
statistical area; and
(3) 1 shall be an area that has primarily rural
characteristics.
In selecting areas, the Secretary shall provide for national geographic
and demographic diversity.
(b) Grantees.--Grants under the program under this section may be
made only to agencies of State and local governments and non-profit
organizations operating within the demonstration areas.
(c) Selection Criteria.--In selecting among applications for
designation of demonstration areas and grants under this section, the
Secretary shall consider--
(1) the extent of single family residences located in the
proposed area that have rehabilitation needs;
(2) the ability and expertise of the applicant in carrying
out the purposes of the demonstration program, including the
availability of qualified housing counselors and contractors in
the proposed area willing and able to participate in
rehabilitation activities funded with grant amounts;
(3) the extent to which the designation of such area and the
grant award would promote affordable housing opportunities;
(4) the extent to which selection of the proposed area would
have a beneficial effect on the neighborhood or community in the
area and on surrounding areas;
(5) the extent to which the applicant has demonstrated that
grant amounts will be used to leverage additional public
[[Page 112 STAT. 2667]]
or private funds to carry out the purposes of the demonstration
program;
(6) the extent to which lenders (including local lenders and
lenders outside the proposed area) are willing and able to make
loans for rehabilitation activities assisted with grant funds;
and
(7) the extent to which the application provides for the
involvement of local residents in the planning of rehabilitation
activities in the demonstration area.
(d) Use of Grant Funds.--Funds from grants made under this section
may be used by grantees--
(1) to subsidize interest on loans, over a period of not
more than 5 years from the origination date of the loan, made
after the date of the enactment of this Act for rehabilitation
of any owner-occupied 1- to 4-family residence, including the
payment of interest during any period in which a residence is
uninhabitable because of rehabilitation activities;
(2) to facilitate loans for rehabilitation of 1- to 4-family
properties previously subject to a mortgage insured under the
National Housing Act that has been foreclosed or for which
insurance benefits have been paid, including to establish
revolving loan funds, loan loss reserves, and other financial
structures; and
(3) to provide technical assistance in conjunction with the
rehabilitation of owner-occupied 1- to 4-family residences,
including counseling, selection contractors, monitoring of work,
approval of contractor payments, and final inspection of work.
(e) Definition of Rehabilitation.--For purposes of this section, the
term ``rehabilitation'' has the meaning given such term in section
203(k)(2)(B) of the National Housing Act (12 U.S.C. 1709(k)(2)(B)).
(f ) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section such sums as may
be necessary for each of fiscal years 1999 through 2003.
(g) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 599H. ASSISTANCE FOR CERTAIN LOCALITIES.
(a) Use of HOME Funds For Public Housing Modernization.--
Notwithstanding section 212(d)(5) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742(d)(5)), amounts made available
to the City of Bismarck, North Dakota or the State of North Dakota,
under subtitle A of title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12741 et seq.) for fiscal year 1998,
1999, 2000, 2001, or 2002, may be used to carry out activities
authorized under section 14 of the United States Housing Act of 1937 (42
U.S.C. 1437l) for the purpose of modernizing the Crescent Manor public
housing project located at 107 East Bowen Avenue, in Bismarck, North
Dakota, if--
(1) the Burleigh County Housing Authority (or any successor
public housing agency that owns or operates the Crescent Manor
public housing project) has obligated all other Federal
assistance made available to that public housing agency for that
fiscal year; or
[[Page 112 STAT. 2668]]
(2) the Secretary of Housing and Urban Development
authorizes the use of those amounts for the purpose of
modernizing that public housing project, which authorization may
be made with respect to 1 or more of those fiscal years.
(b) Consultation <<NOTE: 42 USC 1436d.>> With Affected Areas in
Settlement of Litigation.--In negotiating any settlement of, or consent
decree for, significant litigation regarding public housing or section 8
tenant-based assistance that involves the Secretary and any public
housing agency or any unit of general local government, the Secretary
shall seek the views of any units of general local government and public
housing agencies having jurisdictions that are adjacent to the
jurisdiction of the public housing agency involved, if the resolution of
such litigation would involve the acquisition or development of public
housing dwelling units or the use of vouchers under section 8 of the
United States Housing Act of 1937 in jurisdictions that are adjacent to
the jurisdiction of the public housing agency involved in the
litigation.
(c) Treatment of PHA Repayment Agreement.--
(1) Limitation on secretary.--During the 2-year period
beginning on the date of the enactment of this Act, if the
Housing Authority of the City of Las Vegas, Nevada, is otherwise
in compliance with the Repayment Lien Agreement and Repayment
Plan approved by the Secretary on February 12, 1997, the
Secretary of Housing and Urban Development shall not take any
action that has the effect of reducing the inventory of senior
citizen housing owned by such housing authority that does not
receive assistance from the Department of Housing and Urban
Development.
(2) Alternative Repayment Options.--During the period
referred to in paragraph (1), the Secretary shall assist the
housing authority referred to in such paragraph to identify
alternative repayment options to the plan referred to in such
paragraph and to execute an amended repayment plan that will not
adversely affect the housing referred to in such paragraph.
(3) Rule of construction.--This subsection may not be
construed to alter--
(A) any lien held by the Secretary pursuant to the
agreement referred to in paragraph (1); or
(B) the obligation of the housing authority referred
to in paragraph (1) to close all remaining items
contained in the Inspector General audits numbered 89 SF
1004 (issued January 20, 1989), 93 SF 1801 (issued
October 30, 1993), and 96 SF 1002 (issued February 23,
1996).
(d) Ceiling <<NOTE: Deadline. Chicago.>> Rents For Certain Section 8
Properties.--Notwithstanding any other provision of law, within 30 days
after the date of the enactment of this Act, the Secretary shall
establish ceiling rents for the Marshall Field Garden Apartments Homes
in Chicago, Illinois, at rent levels, in the determination of the
Secretary made in consultation with the owner, that facilitate retaining
or attracting working class families.
(e) Application for Moving to Work Demonstration Program.--Upon the
submission of an application for participation in the moving to work
demonstration program under section 204 of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996
[[Page 112 STAT. 2669]]
(as contained in section 101(e) of the Omnibus Consolidated Rescissions
and Appropriations Act of 1996; 42 U.S.C. 1437f note) by the Charlotte
Housing Authority of Charlotte, North Carolina, or the Housing Authority
of the City of Pittsburgh, Pennsylvania, the Secretary of Housing and
Urban Development shall--
(1) consider such application, notwithstanding--
(A) the limitation under subsection (b) of such
section on the number of public housing agencies that
may participate in such program; or
(B) any limitation regarding the date for the
submission of applications for participation in such
program; and
(2) approve or disapprove the application based on the
criteria for selection for participation in such program,
notwithstanding the limitations referred to in paragraph (1) of
this subsection.
(f ) Use of Project to Benefit Low-Income Persons.--The project
funded by the Secretary of Housing and Urban Development under the
supportive housing program of title IV of the Stewart B. McKinney
Homeless Assistance Act through grant number FL 29T90-1285 (commonly
known as Royal Pointe) shall be considered to have been approved
pursuant to section 423(b)(3) of such Act as of December 31, 1995 for
use for the direct benefit of low-income persons.
(g) Rural <<NOTE: Oklahoma.>> Housing Assistance.--The last sentence
of section 520 of the Housing Act of 1949 (42 U.S.C. 1490) is amended by
inserting before the period the following: ``, and the city of Altus,
Oklahoma, shall be considered a rural area for purposes of this title
until the receipt of data from the decennial census in the year 2000''.
(h) Funding for Purchase and Conversion of Existing Assisted
Housing.--Notwithstanding any other provision of law, and only to the
extent specifically provided in a subsequent appropriations Act, from
any amounts previously appropriated for Annual Contributions for
Assisted Housing or for the Public Housing Capital Fund and not
obligated by the Secretary, the Secretary may make available to the
Lockport Housing Authority in Lockport, New York, such sums as may be
necessary for use in accordance with section 5 of the United States
Housing Act of 1937 (42 U.S.C. 1437c) for the purchase and
rehabilitation of a project that is assisted under section 8 of such Act
and located on a site contiguous to the site of a public housing project
administered by the agency.
(i) Rural and Tribal Assistance.--From the amounts that were made
available to the Secretary under the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1998, for grants for rural and tribal areas pursuant to the 5th
undesignated paragraph of the heading ``Community Planning and
Development--community development block grant programs'' (Public Law
105-65; 111 Stat. 1357), the Secretary shall provide from any amounts
remaining unobligated--
(1) $2,800,000 for seed money for a multi-State rural
homeownership campaign administered by the Rural Opportunities
Affordable Housing Finance Alliance; and
(2) $500,000 to the Rural Housing Institute of the Muscatine
Center for Strategic Action.
[[Page 112 STAT. 2670]]
Notwithstanding any other provision of this Act, this subsection
shall take affect only to the extent specifically provided in a
subsequent appropriations Act.
( j) Community Services Demonstration.--
(1) Authority.--The <<NOTE: Florida. Bethune-Cookman
College.>> Secretary of Housing and Urban Development shall, to
the extent amounts are appropriated to carry out this
subsection, provide financial assistance to the Bethune-Cookman
College in Volusia County, Florida (in this subsection referred
to as the ``College''), in accordance with the provisions of
this subsection, for the College to establish and operate, as a
national demonstration, the Bethune-Cookman Community Services
Student Union Center.
(2) Use.--Any financial assistance provided to the College
pursuant to this subsection shall be used by the College for the
construction, maintenance, and endowment of the Bethune-Cookman
Community Services Student Union Center through--
(A) the acquisition of necessary equipment,
including utility vehicles; or
(B) the acquisition of necessary real property;
(3) Application.--The Secretary shall provide financial
assistance under this subsection only pursuant to application by
the College for such assistance at such time, in such manner,
and providing such information as the Secretary of Housing and
Urban Development may reasonably require.
(4) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary for assistance
under this subsection. Any amounts appropriated pursuant to this
subsection shall remain available until expended.
(k) Independence <<NOTE: Contracts. Rhode Island.>> Square
Foundation.--Notwithstanding any other provision of law, including 28
U.S.C. 516, the Secretary of Housing and Urban Development shall enforce
the use agreement entered into between the Secretary and the
Independence Square Foundation of Newport, Rhode Island: Provided
further, That such enforcement shall include the option of instituting
civil litigation to determine the current applicability of the
aforementioned use agreement or petition for the issuance of an
injunction to prevent the demolition of the property subject to the
aforementioned use agreement.
(l) Removal of HOPE VI Demolition Requirement.--The Secretary may
approve otherwise qualified applications received in response to a
notice published at 63 Federal Register 15489 (March 31, 1998) for
grants from the $26,000,000 set-aside of amounts made available under
the head `revitalization of severely distressed public housing (hope
vi)' in the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1998 (Public
Law 105-65, 111 Stat. 1354) without regard to whether such applications
propose or plan demolition of obsolete public housing projects.
(m) Effective <<NOTE: 42 USC 1436d note.>> Date.--This section shall
take effect on, and the amendments made by this section are made on, and
shall apply beginning upon, the date of the enactment of this Act.
TITLE VI--FHA PROPERTY DISPOSITION REFORM
Sec. 601. Single Family Claims Reform and Sale of Property.
(a) Revision of Claims Procedures.--Section 204
[[Page 112 STAT. 2671]]
of the National Housing Act (12 U.S.C. 1710) is amended by
striking ``Sec. 204.'' and all that follows through the end of
subsection (a) and inserting the following:
``Sec. 204. (a) In General.--
``(1) Authorized claims procedures.--The Secretary may, in
accordance with this subsection and terms and conditions
prescribed by the Secretary, pay insurance benefits to a
mortgagee for any mortgage insured under section 203 through any
of the following methods:
``(A) Assignment of mortgage.--The Secretary may pay
insurance benefits whenever a mortgage has been in a
monetary default for not less than 3 full monthly
installments or whenever the mortgagee is entitled to
foreclosure for a nonmonetary default. Insurance
benefits shall be paid pursuant to this subparagraph
only upon the assignment, transfer, and delivery to the
Secretary of--
``(i) all rights and interests arising under
the mortgage;
``(ii) all claims of the mortgagee against the
mortgagor or others arising out of the mortgage
transaction;
``(iii) title evidence satisfactory to the
Secretary; and
``(iv) such records relating to the mortgage
transaction as the Secretary may require.
``(B) Conveyance of title to property.--The
Secretary may pay insurance benefits if the mortgagee
has acquired title to the mortgaged property through
foreclosure or has otherwise acquired such property from
the mortgagor after a default upon--
``(i) the prompt conveyance to the Secretary
of title to the property which meets the standards
of the Secretary in force at the time the mortgage
was insured and which is evidenced in the manner
provided by such standards; and
``(ii) the assignment to the Secretary of all
claims of the mortgagee against the mortgagor or
others, arising out of mortgage transaction or
foreclosure proceedings, except such claims as may
have been released with the consent of the
Secretary.
The Secretary may permit the mortgagee to tender to the
Secretary a satisfactory conveyance of title and
transfer of possession directly from the mortgagor or
other appropriate grantor, and may pay to the mortgagee
the insurance benefits to which it would otherwise be
entitled if such conveyance had been made to the
mortgagee and from the mortgagee to the Secretary.
``(C) Claim without conveyance of title.--The
Secretary may pay insurance benefits upon sale of the
mortgaged property at foreclosure where such sale is for
at least the fair market value of the property (with
appropriate adjustments), as determined by the
Secretary, and upon assignment to the Secretary of all
claims referred to in clause (ii) of subparagraph (B).
``(D) Preforeclosure sale.--The Secretary may pay
insurance benefits upon the sale of the mortgaged
property by the mortgagor after default and the
assignment to the
[[Page 112 STAT. 2672]]
Secretary of all claims referred to in clause (ii) of
subparagraph (B), if--
``(i) the sale of the mortgaged property has
been approved by the Secretary;
``(ii) the mortgagee receives an amount at
least equal to the fair market value of the
property (with appropriate adjustments), as
determined by the Secretary; and
``(iii) the mortgagor has received an
appropriate disclosure, as determined by the
Secretary.
(2) Payment for loss mitigation.--The Secretary may pay insurance
benefits to the mortgagee to recompense the mortgagee for all or part of
any costs of the mortgagee for taking loss mitigation actions that
provide an alternative to foreclosure of a mortgage that is in default
(including but not limited to actions such as special forbearance, loan
modification, and deeds in lieu of foreclosure, but not including
assignment of mortgages to the Secretary under section 204(a)(1)(A)). No
actions taken under this paragraph, nor any failure to act under this
paragraph, by the Secretary or by a mortgagee shall be subject to
judicial review.
``(3) Determination <<NOTE: Publication. Guidelines.>> of
claims procedure.--The Secretary shall publish guidelines for
determining which of the procedures for payment of insurance
under paragraph (1) are available to a mortgagee when it claims
insurance benefits. At least one of the procedures for payment
of insurance benefits specified in paragraph (1)(A) or (1)(B)
shall be available to a mortgagee with respect to a mortgage,
but the same procedure shall not be required to be available for
all of the mortgages held by a mortgagee.
``(4) Servicing of assigned mortgages.--If a mortgage is
assigned to the Secretary under paragraph (1)(A), the Secretary
may permit the assigning mortgagee or its servicer to continue
to service the mortgage for reasonable compensation and on terms
and conditions determined by the Secretary. Neither the
Secretary nor any servicer of the mortgage shall be required to
forbear from collection of amounts due under the mortgage or
otherwise pursue loss mitigation measures.
``(5) Calculation of insurance benefits.--Insurance benefits
shall be paid in accordance with section 520 and shall be equal
to the original principal obligation of the mortgage (with such
additions and deductions as the Secretary determines are
appropriate) which was unpaid upon the date of--
``(A) assignment of the mortgage to the Secretary;
``(B) the institution of foreclosure proceedings;
``(C) the acquisition of the property after default
other than by foreclosure; or
``(D) sale of the mortgaged property by the
mortgagor.
``(6) Forbearance and recasting after default.--The
mortgagee may, upon such terms and conditions as the Secretary
may prescribe--
``(A) extend the time for the curing of the default
and the time for commencing foreclosure proceedings or
for otherwise acquiring title to the mortgaged property,
to such time as the mortgagee determines is necessary
and desirable to enable the mortgagor to complete the
mortgage payments, including an extension of time beyond
the stated maturity of the mortgage, and in the event of
a subsequent
[[Page 112 STAT. 2673]]
foreclosure or acquisition of the property by other
means the Secretary may include in the amount of
insurance benefits an amount equal to any unpaid
mortgage interest; or
``(B) provide for a modification of the terms of the
mortgage for the purpose of recasting, over the remaining term
of the mortgage or over such longer period pursuant to
guidelines as may be prescribed by the Secretary, the total
unpaid amount then due, with the modification to become
effective currently or to become effective upon the termination
of an agreed-upon extension of the period for curing the
default; and the principal amount of the mortgage, as modified,
shall be considered the `original principal obligation of the
mortgage' for purposes of paragraph (5).
``(7) Termination of premium obligation.--The obligation of
the mortgagee to pay the premium charges for insurance shall
cease upon fulfillment of the appropriate requirements under
which the Secretary may pay insurance benefits, as described in
paragraph (1). The Secretary may also terminate the mortgagee's
obligation to pay mortgage insurance premiums upon receipt of an
application filed by the mortgagee for insurance benefits under
paragraph (1), or in the event the contract of insurance is
terminated pursuant to section 229.
``(8) Effect on payment of insurance benefits under section
230.--Nothing in this section shall limit the authority of the
Secretary to pay insurance benefits under section 230.
``(9) Treatment of mortgage assignment program.--
Notwithstanding any other provision of law, or the Amended
Stipulation entered as a consent decree on November 8, 1979, in
Ferrell v. Cuomo, No. 73 C 334 (N.D. Ill.), or any other order
intended to require the Secretary to operate the program of
mortgage assignment and forbearance that was operated by the
Secretary pursuant to the Amended Stipulation and under the
authority of section 230, prior to its amendment by section
407(b) of The Balanced Budget Downpayment Act, I (Public Law
104-99; 110 Stat. 45), no mortgage assigned under this section
may be included in any mortgage foreclosure avoidance program
that is the same or substantially equivalent to such a program
of mortgage assignment and forbearance.''.
(b) Effective <<NOTE: Federal Register, publication. Notice. 12 USC
1710 note.>> Date.--The Secretary shall publish a notice in the Federal
Register stating the effective date of the terms and conditions
prescribed by the Secretary under section 204(a)(1) of the National
Housing Act, as amended by subsection (a) of this section. Subsections
(a) and (k) of section 204 of the National Housing Act, as in effect
immediately before such effective date, shall continue to apply to any
mortgage insured under section 203 of the National Housing Act before
such effective date, except that the Secretary may, at the request of
the mortgagee, pay insurance benefits as provided in subparagraphs (A)
and (D) of section 204(a)(1) of such Act to calculate insurance benefits
in accordance with section 204(a)(5) of such Act.
(c) Repeal of Redundant Provision.--Subsection (k) of section 204 of
the National Housing Act (12 U.S.C. 1710(k)) is hereby repealed.
(d) Authority To Sell.--Section 204(g) of the National Housing Act
(12 U.S.C. 1710(g)) is amended by adding at the end
[[Page 112 STAT. 2674]]
the following new sentence: ``The Secretary may sell real and personal
property acquired by the Secretary pursuant to the provisions of this
Act on such terms and conditions as the Secretary may prescribe.''.
(e) Authority To Insure Mortgage.--Section 223(c) of the National
Housing Act (12 U.S.C. 1715n(c)) is amended--
(1) by striking ``him'' each place it appears and inserting
``the Secretary''; and
(2) by inserting before ``of any property acquired'', the
following: ``, including a sale through another entity acting
under authority of the fourth sentence of section 204(g),''.
(f ) Loss Mitigation.--Section 230 of the National Housing
Act <<NOTE: 12 USC 1715u.>> is amended--
(1) by redesignating subsections (a) through (e) as (b)
through (f ); and
(2) by inserting a new subsection (a) as follows:
``(a) Upon default of any mortgage insured under this title,
mortgagees shall engage in loss mitigation actions for the purpose of
providing an alternative to foreclosure (including but not limited to
actions such as special forbearance, loss modification, and deeds in
lieu of foreclosure, but not including assignment of mortgages to the
Secretary under section 204(a)(1)(A)) as provided in regulations by the
Secretary.''.
(g) Penalty.--Section 536(a) of the <<NOTE: 12 USC 1735f-
14.>> National Housing Act is amended by inserting at the end of
paragraph (2) the following:
``In the case of the mortgagee's failure to engage in loss
mitigation activities, as provided in section 536(b)(1)(I), the penalty
shall be in the amount of three times the amount of any insurance
benefits claimed by the mortgagee with respect to any mortgage for which
the mortgagee failed to engage in such loss mitigation actions.''.
(h) Violation.--Section 536(b)(1) of the National Housing Act is
amended by inserting after subparagraph (h) the following:
``(I) Failure to engage in loss mitigation actions as provided in
section 230(a) of this Act.''.
Sec. 602. Disposition of HUD-Owned Single Family Assets in
Revitalization Areas.--Section 204 of the National Housing Act (12
U.S.C. 1710) is amended--
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following new
subsection:
``(h) Disposition of Assets in Revitalization Areas.--
``(1) In general.--The purpose of this subsection is to
require the Secretary to carry out a program under which
eligible assets (as such term is defined in paragraph (2)) shall
be made available for sale in a manner that promotes the
revitalization, through expanded homeownership opportunities, of
revitalization areas. Notwithstanding the authority under the
last sentence of subsection (g), the Secretary shall dispose of
all eligible assets under the program and shall establish the
program in accordance with the requirements under this
subsection.
``(2) Eligible assets.--For purposes of this subsection, the
term `eligible asset' means any of the following assets of the
Secretary:
``(A) Properties.--Any property that--
[[Page 112 STAT. 2675]]
``(i) is designed as a dwelling for occupancy
by 1 to 4 families;
``(ii) is located in a revitalization area;
``(iii) was previously subject to a mortgage
insured under the provisions of this Act; and
``(iv) is owned by the Secretary pursuant to
the payment of insurance benefits under this Act.
``(B) Mortgages.--Any mortgage that--
``(i) is an interest in a property that meets
the requirements of clauses (i) and (ii) of
subparagraph (A);
``(ii) was previously insured under the
provisions of this Act; and
``(iii) is held by the Secretary pursuant to
the payment of insurance benefits under this Act.
For purposes of this subsection, an asset under this
subparagraph shall be considered to be located in a
revitalization area, or in the asset control area of a
preferred purchaser, if the property described in clause
(i) is located in such area.
``(C) Future interests.--Any contingent future
interest of the Secretary in an asset described in
subparagraph (A) or (B).
``(3) Revitalization areas.--The Secretary shall designate
areas as revitalization areas for purposes of this subsection.
Before designation of an area as a revitalization area, the
Secretary shall consult with affected units of general local
government and interested nonprofit organizations. The Secretary
may designate as revitalization areas only areas that meet one
of the following requirements:
``(A) Very-low income area.--The median household
income for the area is less than 60 percent of the
median household income for--
``(i) in the case of any area located within a
metropolitan area, such metropolitan area; or
``(ii) in the case of any area not located
within a metropolitan area, the State in which the
area is located.
``(B) High concentration of eligible assets.--A high
rate of default or foreclosure for single family
mortgages insured under the National Housing Act has
resulted, or may result, in the area--
``(i) having a disproportionately high
concentration of eligible assets, in comparison
with the concentration of such assets in
surrounding areas; or
``(ii) being detrimentally impacted by
eligible assets in the vicinity of the area.
``(C) Low home ownership rate.--The rate for home
ownership of single family homes in the area is
substantially below the rate for homeownership in the
metropolitan area.
``(4) Preference for sale to preferred purchasers.--The
Secretary shall provide a preference, among prospective
purchasers of eligible assets, for sale of such assets to any
purchaser who--
``(A) is--
[[Page 112 STAT. 2676]]
``(i) the unit of general local government
having jurisdiction with respect to the area in
which are located the eligible assets to be sold;
or
``(ii) a nonprofit organization;
``(B) in making a purchase under the program under
this subsection--
``(i) establishes an asset control area, which
shall be an area that consists of part or all of a
revitalization area; and
``(ii) purchases all interests of the
Secretary in all assets of the Secretary that, at
any time during the period which shall be set
forth in the sale agreement required under
paragraph (7)--
``(I) are or become eligible assets;
and
``(II) are located in the asset
control area of the purchaser; and
``(C) has the capacity to carry out the purchase of
eligible assets under the program under this subsection
and under the provisions of this paragraph.
``(5) Agreements Required for Purchase.--
``(A) Preferred purchasers.--Under the program under
this subsection, the Secretary may sell an eligible
asset as provided in paragraph (4) to a preferred
purchaser only pursuant to a binding agreement by the
preferred purchaser that the eligible asset will be used
in conjunction with a home ownership plan that provides
as follows:
``(i) The plan has as its primary purpose the
expansion of home ownership in, and the
revitalization of, the asset control area,
established pursuant to paragraph (4)(B)(i) by the
purchaser, in which the eligible asset is located.
``(ii) Under the plan, the preferred purchaser
has established, and agreed to meet, specific
performance goals for increasing the rate of home
ownership for eligible assets in the asset control
area that are under the purchaser's control. The
plan shall provide that the Secretary may waive or
modify such goals or deadlines only upon a
determination by the Secretary that a good faith
effort has been made in complying with the goals
through the homeownership plan and that
exceptional neighborhood conditions prevented
attainment of the goal.
``(iii) Under the plan, the preferred
purchaser has established rehabilitation standards
that meet or exceed the standards for housing
quality established under subparagraph (B)(iii) by
the Secretary, and has agreed that each asset
property for an eligible asset purchased will be
rehabilitated in accordance with such standards.
``(B) Non-preferred purchasers.--Under the program
under this subsection, the Secretary may sell an
eligible asset to a purchaser who is not a preferred
purchaser only pursuant to a binding agreement by the
purchaser that complies with the following requirements:
``(i) The purchaser has agreed to meet
specific performance goals established by the
Secretary for home ownership of the asset
properties for the eligible
[[Page 112 STAT. 2677]]
assets purchased by the purchaser, except that the
Secretary may, by including a provision in the
sale agreement required under paragraph (7),
provide for a lower rate of home ownership in
sales involving exceptional circumstances.
``(ii) The purchaser has agreed that each
asset property for an eligible asset purchased
will be rehabilitated to comply with minimum
standards for housing quality established by the
Secretary for purposes of the program under this
subsection.
``(6) Discount for preferred purchasers.--
``(A) In general.--For the purpose of providing a
public purpose discount for the bulk sales of eligible
assets made under the program under this subsection by
preferred purchasers, each eligible asset sold through
the program under this subsection to a preferred
purchaser shall be sold at a price that is discounted
from the value of the asset, as based on the appraised
value of the asset property (as such term is defined in
paragraph (8)).
``(B) Appraisals.--The Secretary shall require that
each appraisal of an eligible asset under this paragraph
is based upon--
``(i) the market value of the asset property
in its `as is' physical condition, which shall
take into consideration age and condition of major
mechanical and structural systems; and
``(ii) the value of the property appraised for
home ownership.
``(C) Discount classes.--The Secretary, in the sole
discretion of the Secretary, shall establish the
discount under this paragraph for an eligible asset,
which shall be in one of the following amounts:
``(i) Standard discount.--In the case only of
eligible assets with asset properties that, at the
time of sale under this subsection, do not meet
the standards for housing quality established
pursuant to paragraph (5)(B)(ii), an amount that--
``(I) is appropriate to provide
reasonable resources for the improvement
such assets; and
``(II) takes into consideration the
financial safety and soundness of the
Mutual Mortgage Insurance Fund.
``(ii) Deep discount.--In the case only of
eligible assets described in clause (i) for which
the Secretary determines a deep discount is
appropriate, an amount that exceeds the amount of
a standard discount under clause (i). In making a
determination whether a deep discount is
appropriate, the Secretary may consider the
condition of the asset property, the extent of
resources available to the preferred purchaser,
the comprehensive revitalization plan undertaken
by such purchaser, or any other circumstances the
Secretary considers appropriate.
``(iii) Minimal discount.--In the case only of
eligible assets with asset properties that, at the
time of sale under this subsection, meet or
substantially meet the standards for housing
quality established
[[Page 112 STAT. 2678]]
pursuant to paragraph (5)(B)(ii), an amount that
is less than the amount of a standard discount
under clause (i) of this subparagraph and is
sufficient to provide assistance to the preferred
purchaser in meeting costs associated with
compliance with the program requirements under
this subsection.
``(D) Determination of discount class.--The
Secretary shall, in the sole discretion of the
Secretary, establish a method for determining which
discount under clause (i) or (ii) subparagraph (C) shall
be provided for an eligible asset that is described in
such clause (i) and sold to a preferred purchaser. The
method may result in the assignment of discounts on any
basis consistent with subparagraph (C) that the
Secretary considers appropriate to carry out the
purposes of this subsection.
``(7) Sale agreement.--The Secretary may sell an eligible
asset under this subsection only pursuant to a sale agreement
entered into under this paragraph with the purchaser, which
shall include the following provisions:
``(A) Assets.--The sale agreement shall identify the
eligible assets to be purchased and the interests sold.
``(B) Revitalization area and asset control area.--
The sale agreement shall identify--
``(i) the boundaries of the specific
revitalization areas (or portions thereof) in
which are located the eligible assets that are
covered by the agreement; and
``(ii) in the case of a preferred purchaser,
the asset control area established pursuant to
paragraph (4)(B)(i) that is covered by the
agreement.
``(C) Financing.--The sale agreement shall identify
the sources of financing for the purchase of the
eligible assets.
``(D) Binding agreements.--The sale agreement shall
contain binding agreements by the purchaser sufficient
to comply with--
``(i) in the case of a preferred purchaser,
the requirements under paragraph (5)(A), which
agreements shall provide that the eligible assets
purchased will be used in conjunction with a home
ownership plan meeting the requirements of such
paragraph, and shall set forth the terms of the
homeownership plan, including--
``(I) the goals of the plan for the
eligible assets purchased and for the
asset control area subject to the plan;
``(II) the revitalization areas (or
portions thereof) in which the
homeownership plan is operating or will
operate;
``(III) the specific use or
disposition of the eligible assets under
the plan; and
``(IV) any activities to be
conducted and services to be provided
under the plan; or
``(ii) in the case of a purchaser who is not a
preferred purchaser, the requirements under
paragraph (5)(B).
``(E) Purchase price and discount.--The sale
agreement shall establish the purchase price of the
eligible
[[Page 112 STAT. 2679]]
assets, which in the case of a preferred purchaser shall
provide for a discount in accordance with paragraph (6).
``(F) Housing quality.--The sale agreement shall
provide for compliance of the eligible assets purchased
with the rehabilitation standards established under
paragraph (5)(A)(iii) or the minimum standards for
housing quality established under paragraph (5)(B)(ii),
as applicable, and shall specify such standards.
``(G) Performance goals and sanctions.--The sale
agreement shall set forth the specific performance goals
applicable to the purchaser, in accordance with
paragraph (5), shall set forth any sanctions for failure
to meet such goals and deadlines, and shall require the
purchaser to certify compliance with such goals.
``(H) Period covered.--The sale agreement shall
establish--
``(i) in the case of a preferred purchaser,
the time period referred to in paragraph
(4)(B)(ii); and
``(ii) in the case of a purchaser who is not a
preferred purchaser, the time period for purchase
of eligible assets that may be covered by the
purchase.
``(I) Other terms.--The agreement shall contain such
other terms and conditions as may be necessary to
require that eligible assets purchased under the
agreement are used in accordance with the program under
this subsection.
``(8) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Asset control area.--The term `asset control
area' means the area established by a preferred
purchaser pursuant to paragraph (4)(B)(i).
``(B) Asset property.--The term `asset property'
means--
``(i) with respect to an eligible asset that
is a property, such property; and
``(ii) with respect to an eligible asset that
is a mortgage, the property that is subject to the
mortgage.
``(C) Eligible asset.--The term `eligible asset'
means an asset described in paragraph (2).
``(D) Nonprofit organization.--The term `nonprofit
organization' means a private organization that--
``(i) is organized under State or local laws;
``(ii) has no part of its net earnings inuring
to the benefit of any member, shareholder,
founder, contributor, or individual; and
``(iii) complies with standards of financial
responsibility that the Secretary may require.
``(E) Preferred purchaser.--The term `preferred
purchaser' means a purchaser described in paragraph (4).
``(F) Unit of general local government.--The term
`unit of general local government' means any city, town,
township, county, parish, village, or other general
purpose political subdivision of a State.
[[Page 112 STAT. 2680]]
``(9) Secretary's discretion.--The Secretary shall have the
authority to implement and administer the program under this
subsection in such manner as the Secretary may determine. The
Secretary may, in the sole discretion of the Secretary, enter
into contracts to provide for the proper administration of the
program with such public or nonprofit entities as the Secretary
determines are qualified.
``(10) Regulations.--The Secretary shall issue regulations
to implement the program under this subsection through
rulemaking in accordance with the procedures established under
section 553 of title 5, United States Code, regarding
substantive rules. <<NOTE: Effective date.>> Such regulations
shall take effect not later than the expiration of the 2-year
period beginning on the date of the enactment of the Departments
of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1999.''.
Titles I, II, III, IV, and VI of this Act may be cited as the
``Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1999''.
Approved October 21, 1998.
LEGISLATIVE HISTORY--H.R. 4194 (S. 2168):
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HOUSE REPORTS: Nos. 105-610 (Comm. on Appropriations) and 105-769 (Comm.
of Conference).
SENATE REPORTS: No. 105-216 accompanying S. 2168 (Comm. on
Appropriations)
CONGRESSIONAL RECORD, Vol. 144 (1998):
July 17, 23, 29, considered and passed House.
July 30, considered and passed Senate, amended, in lieu of
S. 2168.
Oct. 6, House agreed to conference report.
Oct. 8, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998):
Oct. 21, Presidential statement.
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