S. 1299 (103rd): Multifamily Housing Property Disposition Reform Act of 1994

103rd Congress, 1993–1994. Text as of Nov 09, 1993 (Reported by Senate Committee).

Status & Summary | PDF | Source: GPO

S 1299 RS

Calendar No. 275

103d CONGRESS

1st Session

S. 1299

[Report No. 103-174]

To reform requirements for the disposition of multifamily property owned by the Secretary of Housing and Urban Development, enhance program flexibility, authorize a program to combat crime, and for other purposes.

IN THE SENATE OF THE UNITED STATES

July 28 (legislative day, JUNE 30), 1993

Mr. RIEGLE (for himself and Mr. SARBANES) (by request) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

November 9 (legislative day, NOVEMBER 2), 1993

Reported by Mr. RIEGLE with an amendment

[Strike all after the enacting clause and insert the part printed in italic]


A BILL

To reform requirements for the disposition of multifamily property owned by the Secretary of Housing and Urban Development, enhance program flexibility, authorize a program to combat crime, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

[Struck out->] SHORT TITLE AND TABLE OF CONTENTS [<-Struck out]

    [Struck out->] SECTION 1. (a) SHORT TITLE- This Act may be cited as the ‘Housing and Community Development Act of 1993’. [<-Struck out]

    [Struck out->] (b) TABLE OF CONTENTS- [<-Struck out]

[Struck out->] TITLE I--FHA MULTIFAMILY REFORMS [<-Struck out]

      [Struck out->] Sec. 101. Multifamily property disposition. [<-Struck out]

      [Struck out->] Sec. 102. Amend the requirement for State and local government right of first refusal. [<-Struck out]

      [Struck out->] Sec. 103. Repeal State agency multifamily property disposition demonstration. [<-Struck out]

      [Struck out->] Sec. 104. Demonstration: RTC marketing and disposition of multifamily properties owned by HUD. [<-Struck out]

      [Struck out->] Sec. 105. Authorize civil money penalties against general partners and certain managing agents of multifamily projects. [<-Struck out]

      [Struck out->] Sec. 106. Extend HUD review period for approval of management improvement and operating plans. [<-Struck out]

      [Struck out->] Sec. 107. Use of flexible subsidy in preservation projects. [<-Struck out]

      [Struck out->] Sec. 108. Delete requirement to reduce interest rates to avoid foreclosure on assigned mortgages. [<-Struck out]

[Struck out->] TITLE II--ENHANCE PROGRAM FLEXIBILITY [<-Struck out]

[Struck out->] Subtitle A--Office of Public and Indian Housing [<-Struck out]

      [Struck out->] Sec. 201. Freeze fees for administration of the certificate and voucher programs. [<-Struck out]

      [Struck out->] Sec. 202. Revitalization of severely distressed public housing. [<-Struck out]

      [Struck out->] Sec. 203. Disallowance of earned income for residents who obtain employment. [<-Struck out]

      [Struck out->] Sec. 204. Ceiling rents based on reasonable rental value. [<-Struck out]

[Struck out->] Subtitle B--Office of Community Planning and Development [<-Struck out]

      [Struck out->] Sec. 210. Economic revitalization initiative. [<-Struck out]

      [Struck out->] Sec. 211. HOME investment partnerships. [<-Struck out]

      [Struck out->] Sec. 212. Reduce HOPE 3 match requirement to 25 percent. [<-Struck out]

[Struck out->] Subtitle C--Community Partnerships Against Crime [<-Struck out]

      [Struck out->] Sec. 220. COMPAC program. [<-Struck out]

[Struck out->] TITLE III--TECHNICAL AND OTHER AMENDMENTS [<-Struck out]

[Struck out->] Subtitle A--Public and Assisted Housing [<-Struck out]

      [Struck out->] Sec. 301. Correct the definition of family in the 1937 Act to clarify that families are not required to include children. [<-Struck out]

      [Struck out->] Sec. 302. Eliminate requirement for identification of CIAP replacement needs. [<-Struck out]

      [Struck out->] Sec. 303. Applicability of public housing amendments to Indian housing. [<-Struck out]

      [Struck out->] Sec. 304. Increase the unit threshold above which PHAs are required to adopt project-based accounting. [<-Struck out]

[Struck out->] Subtitle B--Multifamily Housing [<-Struck out]

      [Struck out->] Sec. 310. Correct errors in multifamily mortgage limits. [<-Struck out]

      [Struck out->] Sec. 311. FHA multifamily risk-sharing HFA pilot program amendments. [<-Struck out]

      [Struck out->] Sec. 312. Subsidy layering review. [<-Struck out]

[Struck out->] TITLE I--FHA MULTIFAMILY REFORMS [<-Struck out]

[Struck out->] MULTIFAMILY PROPERTY DISPOSITION [<-Struck out]

    [Struck out->] SEC. 101. (a) SUBSIDIZED AND UNSUBSIDIZED PROJECTS- Section 203 of the Housing and Community Development Amendments of 1978 is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) by redesignating paragraphs (2) through (6) as paragraphs (3) through (7), respectively; and [<-Struck out]

        [Struck out->] (B) by striking paragraph (1) and inserting in lieu thereof the following: [<-Struck out]

      [Struck out->]
      ‘(1) preserving so that they are available to and affordable by low-income persons-- [<-Struck out]

        [Struck out->]
        ‘(A) in the case of a subsidized or formerly subsidized multifamily housing project referred to in subsections (i)(2) (A) through (C), all units in the project; [<-Struck out]

        [Struck out->]
        ‘(B) in the case of a subsidized or formerly subsidized project referred to in subsection (i)(2)(D), all units in the project that are covered, or were covered immediately before foreclosure or acquisition of the project by the Secretary, by an assistance contract under any of the authorities referred to in such subsection; [<-Struck out]

        [Struck out->]
        ‘(C) in all other multifamily housing projects, at least the units that are covered, or were covered immediately before foreclosure or acquisition of the project by the Secretary, by a project-based assistance contract under-- [<-Struck out]

          [Struck out->]
          ‘(i) section 8(b)(2) of the United States Housing Act of 1937 (as such section existed before October 1, 1983) (new construction and substantial rehabilitation); section 8(b) of such Act (property disposition); section 8(d)(2) of such Act (project-based certificates); section 8(e)(2) of such Act (moderate rehabilitation); section 23 of such Act (as in effect before January 1, 1975); or section 101 of the Housing and Urban Development Act of 1965 (rent supplements); or [<-Struck out]

          [Struck out->]
          ‘(ii) section 8 of the United States Housing Act of 1937, following conversion from such section 101; [<-Struck out]

      [Struck out->]
      ‘(2) in the case of multifamily housing projects other than subsidized projects, providing project-based rental assistance to units that were covered by an assistance contract under the Loan Management Set-Aside program under section 8(b) of such Act immediately before foreclosure or acquisition of the project by the Secretary: Provided, That the assistance shall be limited to-- [<-Struck out]

        [Struck out->]
        ‘(A) tenants residing in the units immediately before the foreclosure or acquisition; and [<-Struck out]

        [Struck out->]
        ‘(B) tenants initially admitted to units under such contract that were vacant at the time of the foreclosure or sale by HUD of the project; [<-Struck out]

      [Struck out->] and such assistance shall not be provided to subsequent tenants;’; [<-Struck out]

      [Struck out->] (2) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) in paragraph (1)-- [<-Struck out]

          [Struck out->] (i) by striking ‘, including’ and all that follows through ‘persons,’; and [<-Struck out]

          [Struck out->] (ii) by inserting ‘competent and’ immediately before ‘capable’; [<-Struck out]

        [Struck out->] (B) by adding at the end thereof the following new paragraph: [<-Struck out]

      [Struck out->]
      ‘(3) to develop such procedures as the Secretary determines necessary to obtain appropriate community or resident input into disposition plans; and’; [<-Struck out]

      [Struck out->] (3) by striking paragraph (1) of subsection (d) and the introductory material preceding such paragraph (1), and inserting in lieu thereof the following: ‘In carrying out the goals specified in subsections (a)(1) and (2), the Secretary shall take not less than one of the following actions: [<-Struck out]

      [Struck out->]
      ‘(1) Enter into contracts under section 8 of the United States Housing Act of 1937, to the extent budget authority is available, with owners of multifamily housing projects that are acquired by a purchaser other than the Secretary at foreclosure or after sale by the Secretary. [<-Struck out]

        [Struck out->]
        ‘(A)(i) In the case of a subsidized or formerly subsidized project referred to in subsections (i)(2) (A) through (C), the contract shall be for a term of at least 15 years and shall be sufficient to assist at least all units covered by an assistance contract under any of the authorities referred to in subsection (i)(2)(D). In order to make available to families any of such units that are occupied by persons not eligible for assistance under section 8, but that subsequently become vacant, a contract under this clause shall also provide that when any such vacancy occurs, the owner shall lease the available unit to a family eligible for assistance under section 8. The Secretary shall use the authority contained in paragraph (3) in connection with any unit in such projects that does not receive project-based assistance under this paragraph. [<-Struck out]

        [Struck out->]
        ‘(ii) In the case of a subsidized or formerly subsidized project referred to in subsection (i)(2)(D), the contract shall be for a term of at least 15 years and shall be sufficient to assist at least all units in the project that are covered, or were covered immediately before foreclosure or acquisition of the project by the Secretary, by an assistance contract under any of the authorities referred to in such subsection. In order to make available to families any of such units that are occupied by persons not eligible for assistance under section 8, but that subsequently become vacant, a contract under this clause shall also provide that when any such vacancy occurs, the owner shall lease the available unit to a family eligible for assistance under section 8. [<-Struck out]

        [Struck out->]
        ‘(iii) Contracts under clauses (i) and (ii) shall be at contract rents that, consistent with subsection (a), provide for the necessary rehabilitation of such project and do not exceed such percentage of the existing housing fair market rents for the area (as determined by the Secretary under section 8(c) of the United States Housing Act of 1937) as the Secretary may prescribe. [<-Struck out]

        [Struck out->]
        ‘(B) In all other multifamily housing projects the contract shall be for an initial term of at least five years and shall at least be sufficient to provide project-based rental assistance for all units-- [<-Struck out]

          [Struck out->]
          ‘(i) that are covered, or were covered immediately before foreclosure or acquisition of the project by the Secretary, by an assistance contract under-- [<-Struck out]

            [Struck out->]
            ‘(I) section 8(b)(2) of the United States Housing Act of 1937 (as such section existed before October 1, 1983) (new construction and substantial rehabilitation); section 8(b) property disposition); section 8(d)(2) of such Act (project-based certificates); section 8(e)(2) of such Act (moderate rehabilitation); section 23 of such Act (as in effect before January 1, 1975); or section 101 of the Housing and Urban Development Act of 1965 (rent supplements); or [<-Struck out]

            [Struck out->]
            ‘(II) section 8 of the United States Housing Act of 1937, following conversion from such section 101; and [<-Struck out]

          [Struck out->]
          ‘(ii) that were covered by an assistance contract under the Loan Management Set-Aside program under section 8(b) of such Act immediately before foreclosure or acquisition of the project by the Secretary: Provided, That the assistance shall be limited to-- [<-Struck out]

            [Struck out->]
            ‘(I) tenants residing in the units immediately before the foreclosure or acquisition; and [<-Struck out]

            [Struck out->]
            ‘(II) tenants initially admitted to units under such contract that were vacant at the time of the foreclosure or sale by HUD of the project; [<-Struck out]

          [Struck out->] and such assistance shall not be provided to subsequent tenants.’; [<-Struck out]

      [Struck out->] (4) by adding the following new paragraph at the end of subsection (d): [<-Struck out]

      [Struck out->]
      ‘(4) In connection with projects referred to in paragraph (1), the Secretary is authorized to make available tenant-based rental assistance under section 8 (b) or (o) of such Act to very low-income families (as defined in section 3(b)(2) of the United States Housing Act of 1937) that do not qualify for project-based assistance under such paragraph.’; and [<-Struck out]

      [Struck out->] (5) in subsections (e) (3) and (4), by striking ‘15-year period’ and inserting in lieu thereof the following: ‘the period of assistance’. [<-Struck out]

    [Struck out->] (b) TENANT-BASED ASSISTANCE- Section 203(d)(2) of such Act is amended-- [<-Struck out]

      [Struck out->] (1) in the first sentence, by striking the parenthetical; and [<-Struck out]

      [Struck out->] (2) by adding at the end thereof the following new sentence: ‘Actions pursuant to this paragraph may be taken in connection with not more than 10 percent of the units in subsidized or formerly subsidized projects owned by the Secretary.’. [<-Struck out]

    [Struck out->] (c) ALTERNATE ASSISTANCE- Section 203(d)(3) of such Act is amended by striking ‘will ensure that,’ and all that follows through the end, and inserting in lieu thereof the following: ‘will ensure that-- [<-Struck out]

        [Struck out->]
        ‘(A) the project is available to, and affordable by, low-income persons; and [<-Struck out]

        [Struck out->]
        ‘(B) for a period of not less than 15 years, there shall be in force such use restrictions and rent regulation as the Secretary may prescribe.’. [<-Struck out]

    [Struck out->] (d) NONRENTAL, NONRESIDENTIAL USE- Section 203(d) of such Act, as amended by the previous provisions of this section, is amended-- [<-Struck out]

      [Struck out->] (1) by adding the following new paragraph at the end thereof: [<-Struck out]

      [Struck out->]
      ‘(5)(A) Notwithstanding any other provision of law, of the total number of units in multifamily housing projects that are owned by the Secretary, the Secretary may make up to-- [<-Struck out]

        [Struck out->]
        ‘(i) 10 percent available for uses, other than rental or cooperative use, such as low-income homeownership opportunities, shelters for the homeless, and office space for resident or housing-related social service providers; and [<-Struck out]

        [Struck out->]
        ‘(ii) five percent available for any use, if the Secretary, in consultation with the local or areawide governing body, determines that such action will assist efforts to deconcentrate low-income housing opportunities. [<-Struck out]

      [Struck out->]
      ‘(B) In connection with projects referred to in subparagraph (A), the Secretary is authorized to make available tenant-based rental assistance under section 8 (b) or (o) of such Act to very low-income families (as defined in section 3(b)(2) of the United States Housing Act of 1937) to assist them in locating other decent, safe, and sanitary housing.’; and [<-Struck out]

      [Struck out->] (2) in the last sentence of subsection (e)(1), by striking ‘value’ and all that follows through ‘(d)’ and inserting in lieu thereof the following: ‘intended use of the property after sale’. [<-Struck out]

    [Struck out->] (e) DISPLACEMENT- Sections 203(f)(2) (B) and (C) are each amended by striking ‘above-moderate income’ and inserting in lieu thereof ‘above low-income’. [<-Struck out]

    [Struck out->] (f) SALE OF MORTGAGES ON UNSUBSIDIZED PROJECTS- Section 203(h) of such Act is amended by adding at the end thereof the following new paragraph: [<-Struck out]

      [Struck out->]
      ‘(4) Notwithstanding any other provision of law, the Secretary is authorized to sell mortgages held on multifamily housing projects other than subsidized projects on such terms and conditions as the Secretary may prescribe.’. [<-Struck out]

    [Struck out->] (g) DEFINITION OF ‘SUBSIDIZED PROJECT.’--Section 203(i) of such Act is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1), by striking ‘or section 312 of the Housing Act of 1964’; [<-Struck out]

      [Struck out->] (2) by striking subparagraph (C) of paragraph (2) and renumbering the remaining subparagraphs accordingly; [<-Struck out]

      [Struck out->] (3) in paragraph (2)(C), as redesignated by paragraph (2) of this subsection, by striking ‘or to’ and all that follows through ‘1964’; [<-Struck out]

      [Struck out->] (4) by striking subparagraph (D) of paragraph (2), as redesignated by paragraph (2) of this subsection, and inserting in lieu thereof the following new subparagraph: [<-Struck out]

        [Struck out->]
        ‘(D)(i) rent supplement payments under section 101 of the Housing and Urban Development of 1965; (ii) housing assistance payments made under section 23 of the United States Housing Act of 1937 (as in effect before January 1, 1975); or (iii) housing assistance payments made under section 8 of the United States Housing Act of 1937 (excluding payments made for certificates under subsection (b)(1) or vouchers under subsection (o)), if (except for purposes of paragraphs (1) and (2) of subsection (h) and section 183(c) of the Housing and Community Development Act of 1987) such assistance payments are made to more than 50 percent of the units in the project.’; and [<-Struck out]

      [Struck out->] (5) by striking paragraph (i)(4). [<-Struck out]

    [Struck out->] (h) OTHER PROVISIONS- Section 203 of such Act is amended by adding at the end thereof the following new subsection: [<-Struck out]

    [Struck out->]
    ‘(k) In providing tenant-based assistance in connection with activities pursuant to subsection (d)(4) or (d)(5)(B), the Secretary shall take into consideration the condition of the local market in which the assistance will be used and shall take such steps as the Secretary deems necessary for the successful use of the assistance.’. [<-Struck out]

    [Struck out->] (i) USE OF SAVINGS IN MANDATORY EXPENDITURES- (1) From amounts of savings in mandatory expenditures that result from the amendments made by this section, the Secretary shall-- [<-Struck out]

      [Struck out->] (A) make grants to States and units of general local government in a total amount of $400,000,000 for the rehabilitation of multifamily projects formerly owned by the Secretary that have been transferred to such governmental entities; [<-Struck out]

      [Struck out->] (B) transfer a sufficient number of multifamily housing projects owned by the Secretary to States and units of general local government to assure full use of the amount required for grants under subparagraph (A); and [<-Struck out]

      [Struck out->] (C) require that the grantees comply with requirements established by the Secretary governing use of the project and the grant, including requirements governing use of the units for rental by low-income families and affordability of rents, as determined by the Secretary. [<-Struck out]

    [Struck out->] The Secretary’s authority to make expenditures for grants under this subparagraph shall terminate on September 30, 1994. The Secretary shall, by notice published in the Federal Register, establish such requirements as may be necessary to carry out the provisions of this subparagraph, including a requirement that States and units of general local government do not earn arbitrage profits from these grants. [<-Struck out]

    [Struck out->] (2) For purposes of this subsection-- [<-Struck out]

      [Struck out->] (A) the term ‘low-income families’ has the meaning given such term in section 3(b)(2) of the United States Housing Act of 1937; [<-Struck out]

      [Struck out->] (B) the term ‘Secretary’ means the Secretary of Housing and Urban Development; [<-Struck out]

      [Struck out->] (C) the term ‘State’ has the meaning given such term in section 104(2) of the Cranston-Gonzalez National Affordable Housing Act, including any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive to act on behalf of the State with regard to paragraph (1)(A); and [<-Struck out]

      [Struck out->] (D) the term ‘unit of general local government’ has the meaning given such term in section 104(1) of the Cranston-Gonzalez National Affordable Housing Act, including any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive to act on behalf of the jurisdiction with regard to paragraph (1)(A). [<-Struck out]

[Struck out->] AMEND THE REQUIREMENT FOR STATE AND LOCAL GOVERNMENT RIGHT OF FIRST REFUSAL [<-Struck out]

    [Struck out->] SEC. 102. (a) Section 203(e)(2) of the Housing and Community Development Amendments of 1978 is amended to read as follows: [<-Struck out]

      [Struck out->]
      ‘(2) The Secretary, within 60 days of acquiring title to a project, shall notify the unit of general local government and the State housing finance agency (or other agency or agencies designated by the Governor) of the acquisition of such title. Within 60 days of this notice, the local government or designated State agency may submit to the Secretary a preliminary expression of interest in the project. The Secretary may take such actions as may be necessary to require the local government or designated State agency to substantiate such interest. If the local government or designated State agency has expressed interest within the 60-day period, and has substantiated such interest if requested, upon approval of a disposition plan for a project, the Secretary shall notify the local government and designated State agency of the terms and conditions of the disposition plan and give the local government or designated State agency 90 days from the date of the notification to make an offer to purchase the project. If the local govenment or designated State agency does not express interest within the 60-day period, or does not substantiate an expressed interest if requested, the Secretary, upon approval of a disposition plan, may offer the project for sale to any interested person or entity.’. [<-Struck out]

    [Struck out->] (b) Section 203(e)(3) of such Act is amended by striking ‘The’ in the first sentence and inserting ‘Where the Secretary has given the local government or designated State agency 90 days to make an offer to purchase the project, the’. [<-Struck out]

    [Struck out->] (c) Section 203(e) of such Act, as amended by subsections (a) and (b), shall apply to projects that are acquired on or after the effective date of this section. With respect to projects acquired before the effective date of this section, the Secretary may apply-- [<-Struck out]

      [Struck out->] (1) the requirements of sections 203 (e)(2) and (e)(3) of such Act as they existed immediately before the effective date of this section; or [<-Struck out]

      [Struck out->] (2) the requirements of section 203 (e)(2) and (e)(3) of such Act, as amended by subsections (a) and (b), respectively, if the Secretary gives the local government and designated State agency 60 days to express interest in the project, and for those that express interest within the 60-day period, and substantiate such interest if requested, 90 days from the date of notification of the terms and conditions of the disposition plan to make an offer to purchase the project. [<-Struck out]

[Struck out->] REPEAL STATE AGENCY MULTIFAMILY PROPERTY DISPOSITION DEMONSTRATION [<-Struck out]

    [Struck out->] SEC. 103. Section 184 of the Housing and Community Development Act of 1987 is hereby repealed. [<-Struck out]

[Struck out->] DEMONSTRATION: RTC MARKETING AND DISPOSITION OF MULTIFAMILY PROPERTIES OWNED BY HUD [<-Struck out]

    [Struck out->] SEC. 104. (a) The Secretary of Housing and Urban Development may carry out a demonstration with up to 50 multifamily properties owned by the Secretary, using the Resolution Trust Corporation (RTC) for the marketing and disposition of the properties. Any such demonstration shall be carried out by agreement of the RTC and the Secretary on such terms and conditions as are acceptable to the RTC and the Secretary. The RTC shall establish policies and procedures for marketing and disposition, subject to review and approval by the Secretary. [<-Struck out]

    [Struck out->] (b) The Secretary may waive the requirements of section 203 of the Housing and Community Development Amendments of 1978 and any related requirements, including restrictions on the incomes of families occupying the units and requirements for continued assistance. The Secretary may also waive any other statutory and regulatory requirements that apply to the project and that the Secretary determines are not consistent with the purposes of a demonstration, except that the Secretary may not waive any equal opportunity or nondiscrimination statutory or regulatory requirements or procedures. [<-Struck out]

    [Struck out->] (c) In determining which properties to include in the demonstration, the Secretary shall take into consideration the size of the inventory of properties owned by the Secretary in the locality and such other factors as the Secretary determines are appropriate. [<-Struck out]

    [Struck out->] (d) The Secretary shall reimburse the RTC for the direct costs associated with the demonstration, including the costs of administration and marketing, property management, and any repair and rehabilitation. The Secretary may use proceeds from the sale of the properties to reimburse the RTC for its costs. [<-Struck out]

    [Struck out->] (e) The demonstration under this section shall-- [<-Struck out]

      [Struck out->] (1) be approved personally by the Secretary; [<-Struck out]

      [Struck out->] (2) taken as a whole over the life of the demonstration, not result in higher costs to the Federal Government; [<-Struck out]

      [Struck out->] (3) be generally consistent with the overall purposes of the program or programs under which the waiver is granted; [<-Struck out]

      [Struck out->] (4) be the subject of an evaluation plan for which funding is obligated or set aside at the same time the demonstration is approved and which will be carried out by an independent party; the evaluation shall include an assessment of the impact and effectiveness of (A) any requirements waived pursuant to subsection (b), and (B) any differences between the property disposition procedures of the RTC and the Secretary; and [<-Struck out]

      [Struck out->] (5) be consistent with the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975. [<-Struck out]

    [Struck out->] (f) In approving the demonstration under this section, the Secretary may impose such requirements as the Secretary considers to be appropriate to further its purposes. [<-Struck out]

    [Struck out->] (g) The RTC shall submit an annual progress report to the Secretary. The Secretary shall submit a report to Congress within one year after completion of the demonstration, describing the results of the demonstration and making any recommendations for legislation. [<-Struck out]

    [Struck out->] (h) The demonstration under this section shall not extend beyond the termination date of the Resolution Trust Corporation. [<-Struck out]

    [Struck out->] (i) There is authorized to be appropriated $1,000,000 for the evaluation of the demonstration under this section. [<-Struck out]

[Struck out->] AUTHORIZE CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS AND CERTAIN MANAGING AGENTS OF MULTIFAMILY PROJECTS [<-Struck out]

    [Struck out->] SEC. 105. (a) Section 537 of the National Housing Act is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (b)(1), by inserting after ‘mortgagor’ the second place it appears the following: ‘or general partner of a partnership mortgagor’; [<-Struck out]

      [Struck out->] (2) in the heading to subsection (c), by deleting ‘VIOLATIONS OF REGULATORY AGREEMENT’ and inserting in lieu thereof the following: ‘OTHER VIOLATIONS’; [<-Struck out]

      [Struck out->] (3) in subsection (c)(1)-- [<-Struck out]

        [Struck out->] (A) by deleting ‘any mortgagor of property’ and all that follows through ‘as follows:’ and inserting in lieu thereof the following: [<-Struck out]

        [Struck out->]
        ‘(A) any mortgagor of property that includes five or more living units and that has a mortgage insured, coinsured, or held pursuant to this Act; [<-Struck out]

        [Struck out->]
        ‘(B) the general partner of a partnership mortgagor; [<-Struck out]

        [Struck out->]
        ‘(C) any agent employed to manage the property that has an identity of interest with the general partner; or [<-Struck out]

        [Struck out->]
        ‘(D) any independent fee management entity, under contract with the mortgagor or general partner of a partnership mortgagor, that fails to notify the Secretary, as required by the Secretary, that it has been instructed by the mortgagor or general partner of a partnership mortgagor to engage in activities that are contrary to regulations and requirements of the Secretary. A penalty may be imposed under this section for knowingly and materially taking any of the following actions:’; [<-Struck out]

        [Struck out->] (B) by adding after subparagraph (L) the following new subparagraphs: [<-Struck out]

        [Struck out->]
        ‘(M) Failure, when there is adequate project income available, to maintain the premises, accommodations, and the grounds and equipment appurtenant thereto in good repair and condition in accordance with regulations and requirements of the Secretary. [<-Struck out]

        [Struck out->]
        ‘(N) Failure, by a general partner of a partnership mortgagor, to provide management for the project that is acceptable to the Secretary pursuant to regulations and requirements of the Secretary.’; [<-Struck out]

        [Struck out->] (C) in the last sentence, by deleting ‘of such agreement’ and inserting in lieu thereof the following: ‘of this subsection’; and [<-Struck out]

        [Struck out->] (D) by redesignating subparagraphs (A) through (N) as clauses (i) through (xiv), respectively; [<-Struck out]

      [Struck out->] (4) in subsection (d)(1)(B), by inserting after ‘mortgagor’ the following: ‘, general partner of a partnership mortgagor, or agent employed to manage the property or independent fee management entity as described in subsections (c)(1) (C) and (D), respectively,’; [<-Struck out]

      [Struck out->] (5) in subsection (e)(1), by deleting ‘a mortgagor’ and inserting in lieu thereof the following: ‘an entity or person’; [<-Struck out]

      [Struck out->] (6) in subsection (f), by inserting after ‘mortgagor’ both times that it appears the following: ‘, general partner of a partnership mortgagor, or agent employed to manage the property or independent fee management agent as described in subsections (c)(1) (C) and (D), respectively,’; and [<-Struck out]

      [Struck out->] (7) by amending the heading to read as follows: ‘CIVIL MONEY PENALTIES AGAINST MULTIFAMILY MORTGAGORS, GENERAL PARTNERS OF PARTNERSHIP MORTGAGORS, AND MANAGING AGENTS’. [<-Struck out]

    [Struck out->] (b) The amendments made by subsection (a) shall apply only with respect to-- [<-Struck out]

      [Struck out->] (1) violations that occur on or after the effective date of this section; and [<-Struck out]

      [Struck out->] (2) in the case of a continuing violation (as determined by the Secretary of Housing and Urban Development), any portion of a violation that occurs on or after such date. [<-Struck out]

[Struck out->] EXTEND HUD REVIEW PERIOD FOR APPROVAL OF MANAGEMENT IMPROVEMENT AND OPERATING PLANS [<-Struck out]

    [Struck out->] SEC. 106. Section 201(d)(6) of the Housing and Community Development Amendments of 1978 is amended by striking ‘30’ and inserting ‘120’. [<-Struck out]

[Struck out->] USE OF FLEXIBLE SUBSIDY IN PRESERVATION PROJECTS [<-Struck out]

    [Struck out->] SEC. 107. (a) USE OF ASSISTANCE- Section 201(k) of the Housing and Community Development Amendments of 1978 is amended by adding at the end thereof the following new paragraph: [<-Struck out]

      [Struck out->]
      ‘(4) In providing, and contracting to provide, assistance for capital improvements under this section, the Secretary shall give priority to projects that are eligible for incentives under section 224(b) of the Emergency Low Income Housing Preservation Act of 1987. The Secretary may make such assistance available on a noncompetitive basis.’. [<-Struck out]

    [Struck out->] (b) CERTAIN UNINSURED PROJECTS- Section 201(n)(2) of such Act is amended by inserting a comma immediately after ‘insured mortgages in force’ and the following: ‘projects for which the Secretary holds the mortgage, and projects with respect to which the Secretary makes interest reduction payments under section 236(o) of the National Housing Act’. [<-Struck out]

[Struck out->] DELETE REQUIREMENT TO REDUCE INTEREST RATES TO AVOID FORECLOSURE ON ASSIGNED MORTGAGES [<-Struck out]

    [Struck out->] SEC. 108. Section 7(i)(5) of the Department of Housing and Urban Development Act is amended by striking out the first semicolon, and all that follows through ‘as determined by the Secretary’. [<-Struck out]

[Struck out->] TITLE II--ENHANCE PROGRAM FLEXIBILITY [<-Struck out]

[Struck out->] Subtitle A--Office of Public and Indian Housing Freeze Fees for Administration of the Certificate and Voucher Programs [<-Struck out]

    [Struck out->] SEC. 201. Notwithstanding the second sentence of section 8(q)(1) of the United States Housing Act of 1937, other applicable law, and any implementing regulations and related requirements, the fee for the ongoing costs of administering the certificate and housing voucher programs under sections 8(b) and 8(o) of such Act for Federal fiscal year 1994 shall be based on the fair market rents for Federal fiscal year 1993. However, the Secretary may increase the fee in accordance with the third sentence of section 8(q)(1) and sections 8(q)(2) (ii) and (iii) of such Act. [<-Struck out]

[Struck out->] REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING [<-Struck out]

    [Struck out->] SEC. 202. (a) SEVERELY DISTRESSED PUBLIC HOUSING- Section 24 of the United States Housing Act of 1937 is amended as provided by this subsection. [<-Struck out]

      [Struck out->] (1) Delete requirement for designation of eligible projects- [<-Struck out]

        [Struck out->] (A) Subsection (b) is hereby repealed. [<-Struck out]

        [Struck out->] (B) Subsection (i)(2) is hereby repealed and the following paragraphs redesignated accordingly. [<-Struck out]

      [Struck out->] (2) INCREASE PLANNING GRANT DOLLAR CAP- Subsection (c)(2) is amended by striking ‘$200,000’ and inserting ‘$500,000’. [<-Struck out]

      [Struck out->] (3) PLANNING GRANT ELIGIBLE ACTIVITIES: COMMUNITY SERVICE- Subsection (c)(3) is amended by inserting the following new subparagraph after subparagraph (D) and redesignating the following subparagraphs accordingly: [<-Struck out]

        [Struck out->]
        ‘(E) planning for community service activities to be carried out by residents, other members of the community, and other persons willing to contribute to the social, economic, or physical improvement of the community (community service is a required element of the revitalization program);’. [<-Struck out]

      [Struck out->] (4) PLANNING GRANT APPLICATION: COMMUNITY SERVICE- Subsection (c)(4) is amended by inserting the following new subparagraph after subparagraph (C) and redesignating the following subparagraphs accordingly: [<-Struck out]

        [Struck out->]
        ‘(D) a description of the planning activities for community service to be carried out by residents, other members of the community, and other persons willing to contribute to the social, economic, or physical improvement of the community;’. [<-Struck out]

      [Struck out->] (5) IMPLEMENTATION GRANT ELIGIBLE ACTIVITIES- [<-Struck out]

        [Struck out->] (A) Subsection (d)(2) is amended by inserting the following new subparagraphs after subparagraph (D) and redesignating the following subparagraphs accordingly: [<-Struck out]

        [Struck out->]
        ‘(E) community service activities to be carried out by residents, other members of the community, and other persons willing to contribute to the social, economic, or physical improvement of the community (community service is a required element of the revitalization program); and [<-Struck out]

        [Struck out->]
        ‘(F) replacement of public housing units, when required under section 18, through the use of implementation grant funds for the development of replacement units provided through the methods permitted under section 18(b)(3);’. [<-Struck out]

        [Struck out->] (B) Subsection (d)(2)(K), as redesignated by subparagraph (A) of this paragraph, is amended by-- [<-Struck out]

          [Struck out->] (i) striking ‘than 15 percent’ and inserting ‘than 20 percent’; and [<-Struck out]

          [Struck out->] (ii) inserting before the period the following: ‘and provided that an amount equal to 15 percent of the amount of any grant under this subsection used for support services shall be contributed from non-Federal sources (this contribution shall be in the form of cash, administrative costs, and the reasonable value of in-kind contributions and may include funding under title I of the Housing and Community Development Act of 1974)’. [<-Struck out]

      [Struck out->] (6) IMPLEMENTATION GRANT APPLICATIONS: COMMUNITY SERVICE- Subsection (d)(3) is amended by inserting the following new subparagraph after subparagraph (C) and redesignating the following subparagraphs accordingly: [<-Struck out]

        [Struck out->]
        ‘(D) a description of the community service activities to be carried out by residents, other members of the community, and other persons willing to contribute to the social, economic, or physical improvement of the community;’. [<-Struck out]

      [Struck out->] (7) PLANNING GRANT AND IMPLEMENTATION GRANT SELECTION CRITERIA: NATIONAL GEOGRAPHIC DIVERSITY- Subsections (c)(5) and (d)(4) are each amended by-- [<-Struck out]

        [Struck out->] (A) striking subparagraph (E) and redesignating the following subparagraphs accordingly; and [<-Struck out]

        [Struck out->] (B) inserting at the end the following new flush matter: [<-Struck out]

      [Struck out->]
      ‘The Secretary may select a lower-rated, approvable application over a higher-rated application to increase the level of national geographic diversity of applications approved under this section.’. [<-Struck out]

      [Struck out->] (8) IMPLEMENTATION GRANT SELECTION CRITERIA- Subsection (d)(4)(D) is amended by striking ‘the potential of the applicant for developing a successful and affordable’ and inserting ‘the quality of the proposed’. [<-Struck out]

      [Struck out->] (9) DEFINITIONS- (A) Subsection (h)(5) is amended to read as follows: [<-Struck out]

      [Struck out->]
      ‘(5) SEVERELY DISTRESSED PUBLIC HOUSING- The term ‘severely distressed public housing’ means a public housing project or a building in a project that-- [<-Struck out]

        [Struck out->]
        ‘(A) requires major redesign, reconstruction, or redevelopment, or partial or total demolition, to correct serious deficiencies in the original design (including inappropriately high population density), deferred maintenance, physical deterioration or obsolescence of major systems, and other deficiencies in the physical plant of the project; and [<-Struck out]

        [Struck out->]
        ‘(B)(i)(I) is occupied predominantly by families with children which have extremely low incomes, high rates of unemployment, and extensive dependency on various forms of public assistance; and [<-Struck out]

        [Struck out->]
        ‘(II) has high rates of vandalism and criminal activity (including drug-related criminal activity); or [<-Struck out]

        [Struck out->]
        ‘(ii) has a vacancy rate, as determined by the Secretary, of 50 percent or more; and [<-Struck out]

        [Struck out->]
        ‘(C) cannot be revitalized through assistance under other programs, such as the programs under sections 9 and 14, or through other administrative means because of the inadequacy of available funds; and [<-Struck out]

        [Struck out->]
        ‘(D) in the case of individual buildings, the building is, in the Secretary’s determination, sufficiently separable from the remainder of the project to make use of the building feasible for purposes of this section.’. [<-Struck out]

      [Struck out->] (B) Subsection (h) is amended by adding the following new paragraphs at the end thereof: [<-Struck out]

      [Struck out->]
      ‘(6) COMMUNITY SERVICE- The term ‘community service’ means services provided on a volunteer or limited stipend basis for the social, economic, or physical improvement of the community to be served, including opportunity for the upward mobility of participants providing the community service, through completion of education requirements, job training, or alternative methods of developing skills and job readiness. [<-Struck out]

      [Struck out->]
      ‘(7) SUPPORT SERVICES- The term ‘support services’ includes all activities designed to lead toward upward mobility, self-sufficiency, and improved quality of life for the residents of the project, such as literacy training, job training, day care, and economic development, and may include such activities for residents of the neighborhood.’. [<-Struck out]

    [Struck out->] (b) CONFORMING AMENDMENT- The first sentence of section 25(m)(1) of the United States Housing Act of 1937 is amended to read as follows: ‘The term ‘eligible housing’ means a public housing project, or one or more buildings within a project, that is owned or operated by a troubled public housing agency.’. [<-Struck out]

    [Struck out->] (c) COMPREHENSIVE GRANT AND DEVELOPMENT GRANTS FOR REPLACEMENT HOUSING- (1) Section 5(a)(2) of the United States Housing Act of 1937 is amended by adding the following new sentence at the end thereof: ‘In providing assistance under this paragraph, the Secretary may give priority to public housing agencies that use comprehensive grants under section 14(k) for replacement housing under section 18(b)(3)(A).’ [<-Struck out]

    [Struck out->] (2) Section 14 of such Act is amended by adding the following new subsection at the end thereof: [<-Struck out]

    [Struck out->]
    ‘(q) The Secretary may authorize a public housing agency to use assistance allocated to it for use under subsection (e) for the development of additional housing under this Act, in accordance with requirements applicable to the development of public housing, to provide replacement housing as required by section 18.’. [<-Struck out]

    [Struck out->] (d) USE OF TENANT-BASED ASSISTANCE FOR REPLACEMENT HOUSING- (1) Section 18(b)(3)(A) of such Act is amended-- [<-Struck out]

      [Struck out->] (A) by striking ‘or’ at the end of clause (v); [<-Struck out]

      [Struck out->] (B) by redesignating clause (vi) as clause (vii); and [<-Struck out]

      [Struck out->] (C) by inserting the following new clause immediately after clause (v): [<-Struck out]

        [Struck out->]
        ‘(vi) the use of five-year tenant-based assistance under section 8(b) or (o) if-- [<-Struck out]

          [Struck out->]
          ‘(I) the project has been vacant for a period of at least five years; [<-Struck out]

          [Struck out->]
          ‘(II) the proposed demolition is necessary for revitalization of the remaining units in the project; or [<-Struck out]

          [Struck out->]
          ‘(III) demolition of the entire project is proposed and some or all of the units will be replaced on the site; or’. [<-Struck out]

    [Struck out->] (2) Section 18(b)(3) of such Act is amended-- [<-Struck out]

      [Struck out->] (A) in subparagraph (A)(v), by striking ‘to the extent available’ and all that follows through ‘5 years’; and [<-Struck out]

      [Struck out->] (B) in subparagraph (C), by adding the following new flush matter at the end thereof: [<-Struck out]

    [Struck out->]
    Provided, That notwithstanding the other provisions of this subparagraph, if the plan involves (I) a demolition described in subparagraph (A)(vi) or (II) the demolition of 200 or more units, tenant-based assistance under section 8(b) or (o) may be approved if the public housing agency determines, in accordance with such requirements as the Secretary may prescribe, that such use is feasible and appropriate to meeting the low-income housing needs in the community;’. [<-Struck out]

    [Struck out->] (3) Section 18(c)(2) of such Act is amended by inserting before the period at the end of the first sentence a comma and the following: ‘except for amounts to be provided from the allocation of comprehensive grant assistance to the public housing agency under section 14’. [<-Struck out]

    [Struck out->] (e) NEED FOR REPLACEMENT HOUSING- The flush matter at the end of section 18(b)(3) of such Act is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘except that,’ and inserting in lieu thereof the following: ‘except that (1)’; and [<-Struck out]

      [Struck out->] (2) by inserting immediately before the period at the end thereof the following: ‘, and (2) a public housing agency may demolish public housing dwelling units without providing an additional unit for each unit to be demolished if there is no need for additional assisted housing in the community, as determined in accordance with criteria determined by the Secretary’. [<-Struck out]

    [Struck out->] (f) REPLACEMENT HOUSING OUTSIDE THE JURISDICTION OF THE PHA- Section 18(b)(3) of such Act is amended by inserting the following new subparagraph after subparagraph (C), and redesignating the following subparagraphs accordingly: [<-Struck out]

      [Struck out->]
      ‘(D) may provide that all or part of such additional dwelling units may be located outside the jurisdiction of the public housing agency (the ‘original agency’) if-- [<-Struck out]

        [Struck out->]
        ‘(i) the location is in the same housing market area as the original agency, as determined by the Secretary; [<-Struck out]

        [Struck out->]
        ‘(ii) the plan contains an agreement between the original agency and the public housing agency in the alternate location or other public or private entity that will be responsible for providing the additional units in the alternate location (‘alternate agency or entity’) that the alternate agency or entity will, with respect to the dwelling units involved-- [<-Struck out]

          [Struck out->]
          ‘(I) provide the dwelling units in accordance with subparagraph (A) of this paragraph; [<-Struck out]

          [Struck out->]
          ‘(II) complete the plan on schedule in accordance with subparagraph (F) of this paragraph; [<-Struck out]

          [Struck out->]
          ‘(III) meet the requirements of subparagraph (G) of this paragraph and the maximum rent provisions of subparagraph (H) of this paragraph; and [<-Struck out]

          [Struck out->]
          ‘(IV) not impose a local residency preference on any resident of the jurisdiction of the original agency for purposes of admission to any such units; and [<-Struck out]

        [Struck out->]
        ‘(iii) the arrangement is approved by the unit of general local government for the jurisdiction in which the additional units will be located.’. [<-Struck out]

[Struck out->] DISALLOWANCE OF EARNED INCOME FOR RESIDENTS WHO OBTAIN EMPLOYMENT [<-Struck out]

    [Struck out->] SEC. 203. (a) DISALLOWANCE OF EARNED INCOME FROM PUBLIC HOUSING RENT DETERMINATIONS- [<-Struck out]

      [Struck out->] (1) IN GENERAL- Section 3 of the United States Housing Act of 1937 is amended by striking the undesignated paragraph at the end thereof and inserting in lieu thereof the following new subsection: [<-Struck out]

    [Struck out->]
    ‘(d) DISALLOWANCE OF EARNED INCOME FROM PUBLIC HOUSING RENT DETERMINATIONS- Notwithstanding any other provision of law, the rent payable under subsection (a) for any public housing unit by a family whose income increases as a result of employment of a member of the family who was previously unemployed for one or more years not be increased as a result of the increased income due to such employment for a period of 18 months, beginning with the commencement of employment.’. [<-Struck out]

      [Struck out->] (2) APPLICABILITY OF AMENDMENT- Notwithstanding the amendment made by paragraph (1), any resident of public housing participating in the authority contained in such undesignated paragraph immediately before its amendment by this section shall continue to be governed by such authority. [<-Struck out]

    [Struck out->] (b) REPEALER- Section 957 of the Cranston-Gonzalez National Affordable Housing Act is hereby repealed. [<-Struck out]

[Struck out->] CEILING RENTS BASED ON REASONABLE RENTAL VALUE [<-Struck out]

    [Struck out->] SEC. 204. (a) Section 3(a)(2)(A)(iii) of the United States Housing Act of 1937 is amended to read as follows: [<-Struck out]

      [Struck out->]
      ‘(iii) is not less than the reasonable rental value of the unit, as determined by the Secretary.’. [<-Struck out]

    [Struck out->] (b) The Secretary shall, by notice published in the Federal Register, establish such requirements as may be necessary to carry out the provisions of section 3(a)(2)(A) of the United States Housing Act of 1937, as amended by subsection (a). The notice shall also invite public comments, and the Secretary shall issue final regulations based on the initial notice, taking into account any public comments received. [<-Struck out]

[Struck out->] Subtitle B--Office of Community Planning and Development Economic Revitalization Initiative [<-Struck out]

    [Struck out->] SEC. 210. (a) ECONOMIC REVITALIZATION GRANTS- (1) Section 108(a) of the Housing and Community Development Act of 1974 is amended by striking the second sentence and inserting in lieu thereof the following: ‘A guarantee under this section (including a guarantee combined with a grant under subsection (q)) may be used to assist a grantee in obtaining financing, only if the grantee has made efforts to obtain the financing without the use of the guarantee (and, if applicable, the grant) and cannot complete the financing consistent with the timely execution of the proposed activities and projects without the guarantee (or, if applicable, the grant).’. [<-Struck out]

    [Struck out->] (2) Section 108 of such Act is further amended by adding at the end thereof the following new subsection: [<-Struck out]

    [Struck out->]
    ‘(q)(1) The Secretary is authorized to use amounts deobligated under section 119 to provide grants in accordance with this subsection for economic revitalization projects to eligible public entities (units of general local government) in connection with notes or other obligations guaranteed for such entities under this section. [<-Struck out]

    [Struck out->]
    ‘(2) By regulation, the Secretary shall prescribe the terms and conditions of these grants (in accordance with this title, except as otherwise permitted by this subsection), including guidelines related to economic revitalization projects eligible for grants, the amount of grant funds to be provided for specific economic revitalization projects applied for, and requirements applicable to the use of the grant and the guaranteed loan proceeds by the recipient. The regulations shall at a minimum implement the provisions specified in this subsection. [<-Struck out]

    [Struck out->]
    ‘(3) The proceeds of the guaranteed loan, and the grant under this subsection, shall be used to finance economic development activities and projects eligible under subsection (a) and specified in the approved application. In this subsection, the term ‘economic revitalization projects’ refers to such eligible economic development projects and activities. [<-Struck out]

    [Struck out->]
    ‘(4) If the eligible public entity proposes a grant under this subsection, it shall submit its request to HUD, in the form prescribed by HUD, with or as part of its application for loan guarantee assistance under this section. [<-Struck out]

    [Struck out->]
    ‘(5) To the extent funds are available, grants under this subsection shall be approved on a first-come, first-served basis.’. [<-Struck out]

    [Struck out->] (3) Section 119(o) of such Act is amended by striking ‘shall be’ and all that follows up to the period and inserting in lieu thereof the following: ‘shall, as determined by the Secretary, be added to amounts appropriated under section 103 or be used to provide grants under section 108(q)’. [<-Struck out]

    [Struck out->] (4) Title I of such Act is amended-- [<-Struck out]

      [Struck out->] (A) in the second sentence of section 101(c), by striking ‘and, if applicable, the funds received as a result of a guarantee under section 108,’ and by inserting in lieu therof ‘(including any such funds used to make payments on a loan guaranteed by the Secretary under section 108) and, if applicable, any grant received under section 108(q),’ and [<-Struck out]

      [Struck out->] (B) in section 104(b)(3), by striking ‘and, if applicable, as a result of a guarantee under section 108,’ and by inserting in lieu thereof ‘(including any such funds used to make payments on a loan guaranteed by the Secretary under section 108) and, if applicable, any grant received under section 108(q),’. [<-Struck out]

    [Struck out->] (b) SECTION 108 LOAN GUARANTEES FOR COLONIAS- The first sentence of section 108(a) of the Housing and Community Development Act of 1974 is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘or’ immediately after ‘section 105(a);’; and [<-Struck out]

      [Struck out->] (2) by inserting immediately before the period at the end thereof the following: ’; or (5) activities under section 105(a)(2) with respect to colonias under section 916 of the Cranston-Gonzalez National Affordable Housing Act’. [<-Struck out]

    [Struck out->] (c) GUARANTEE OF OBLIGATIONS BACKED BY SECTION 108 LOANS- Section 108 of the Housing and Community Development Act of 1974 is amended by adding at the end thereof the following new subsection: [<-Struck out]

    [Struck out->]
    ‘(r)(1) The Secretary is authorized, upon such terms and conditions as the Secretary deems appropriate, to guarantee the timely payment of the principal of and interest on such trust certificates or other obligations as shall-- [<-Struck out]

      [Struck out->]
      ‘(A) be offered by the Secretary or by any other offeror approved for purposes of this subsection by the Secretary, and [<-Struck out]

      [Struck out->]
      ‘(B) be based on and backed by a trust or pool composed of notes or other obligations guaranteed or eligible for guarantee by the Secretary under this section. [<-Struck out]

    [Struck out->]
    ‘(2) To the same extent as provided in subsection (f), the full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any guarantee by the Secretary under this subsection. [<-Struck out]

    [Struck out->]
    ‘(3) In the event the Secretary pays a claim under a guarantee issued under this section, it shall be subrogated fully to the rights satisfied by such payment. [<-Struck out]

    [Struck out->]
    ‘(4) No State or local law, and no Federal law, shall preclude or limit the exercise by the Secretary of-- [<-Struck out]

      [Struck out->]
      ‘(A) the power to contract with respect to public offerings and other sales of notes, trust certificates, and other obligations guaranteed under this section upon such terms and conditions as the Secretary deems appropriate, [<-Struck out]

      [Struck out->]
      ‘(B) the right to enforce by any means deemed appropriate by the Secretary any such contract, and [<-Struck out]

      [Struck out->]
      ‘(C) the Secretary’s ownership rights, as applicable, in notes, certificates, or other obligations guaranteed under this section, or constituting the trust or pool against which trust certificates, or other obligations guaranteed under this section are offered.’. [<-Struck out]

[Struck out->] HOME INVESTMENT PARTNERSHIPS [<-Struck out]

    [Struck out->] SEC. 211. (a) PARTICIPATION BY STATE AGENCIES OR INSTRUMENTALITIES- Section 104(2) of the Cranston-Gonzalez National Affordable Housing Act is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘and’; and [<-Struck out]

      [Struck out->] (2) by inserting before the period at the end thereof the following: ‘, and any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive to act on behalf of the jurisdiction with regard to provisions of this Act’. [<-Struck out]

    [Struck out->] (b) SIMPLIFY PROGRAM-WIDE INCOME TARGETING FOR HOME RENTAL HOUSING- Sections 214(1) (A) and (B) of such Act are amended by striking ‘such funds are invested with respect to dwelling units that are occupied by’ each place it appears and inserting in lieu thereof the following: ‘(i) the families receiving such rental assistance are, or (ii) the dwelling units assisted with such funds are occupied by,’. [<-Struck out]

    [Struck out->] (c) REMOVE FIRST-TIME HOMEBUYER LIMITATION FOR HOME UNITS- Section 215(b) of such Act is amended by striking paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. [<-Struck out]

    [Struck out->] (d) SIMPLIFY RESALE PROVISIONS- Section 215(b)(4)(B) of such Act is amended by striking ‘subsection’ and inserting in lieu thereof ‘title’. [<-Struck out]

    [Struck out->] (e) Stabilization of Home Funding Thresholds- [<-Struck out]

      [Struck out->] (1) Sections 216(10) and 217(b)(4) of such Act are hereby repealed. [<-Struck out]

      [Struck out->] (2) Section 217(b)(3) of such Act is amended-- [<-Struck out]

        [Struck out->] (A) in the first sentence, by striking ‘only those jurisdictions’ and all that follows up to the period and inserting in lieu thereof the following: ‘jurisdictions that are not participating jurisdictions that are allocated an amount of $500,000 or greater and jurisdictions that are participating jurisdictions shall receive an allocation’; and [<-Struck out]

        [Struck out->] (B) in the last sentence, by striking ‘, except as provided in paragraph (4)’. [<-Struck out]

      [Struck out->] (3) Section 216 of such Act is amended-- [<-Struck out]

        [Struck out->] (A) in paragraph (3), by striking ‘Except as provided in paragraph (10), a jurisdiction’ in the first sentence and inserting in lieu thereof ‘A jurisdiction’; and [<-Struck out]

        [Struck out->] (B) in paragraph (9)(B), by striking ‘, except as provided in paragraph (10)’. [<-Struck out]

    [Struck out->] (f) COMPREHENSIVE AFFORDABLE HOUSING STRATEGY- [<-Struck out]

      [Struck out->] (1) HOME PROGRAM- The first sentence of section 218(d) of such Act is amended by inserting immediately after ‘providing certification’ the following: ‘that it is following a current housing affordability strategy which has been approved by the Secretary in accordance with section 105, and’. [<-Struck out]

      [Struck out->] (2) HOMELESS ASSISTANCE PROGRAMS- [<-Struck out]

        [Struck out->] (A) IN GENERAL- Section 401 of the Stewart B. McKinney Homeless Assistance Act is amended to read as follows: [<-Struck out]

[Struck out->] HOUSING AFFORDABILITY STRATEGY. [<-Struck out]

    [Struck out->]
    ‘SEC. 401. (a) REQUIREMENT TO FOLLOW A CHAS- Assistance may be made available Under subtitle B to metropolitan cities, urban counties, and States receiving a formula amount under section 413, only if the jurisdiction certifies that it is following a current housing affordability strategy which has been approved by the Secretary in accordance with section 105 of the Cranston-Gonzalez National Affordable Housing Act. [<-Struck out]

    [Struck out->]
    ‘(b) REQUIREMENT FOR CONSISTENCY WITH CHAS- Assistance may be made available under this title only if the application contains a certification that the proposed project or activities are consistent with the housing strategy of the State or unit of general local government in which the project is located. The certification shall be from the public official responsible for submitting the strategy for the jurisdiction.’. [<-Struck out]

        [Struck out->] (B) CONFORMING CHANGES- Title IV of such Act is amended by striking sections 426(a)(2)(F), 434(a)(10), and 454(b)(9). [<-Struck out]

    [Struck out->] (g) SIMPLIFY HOME MATCHING REQUIREMENTS- Section 220 of the Cranston-Gonzalez National Affordable Housing Act is amended to read as follows: [<-Struck out]

    [Struck out->]
    ‘(a) CONTRIBUTION- Each participating jurisdiction shall make contributions to housing that qualifies as affordable housing under this title that total, throughout a fiscal year, not less than 25 percent of the funds drawn from the jurisdictions’s HOME Investment Trust Fund in that fiscal year. This contribution shall be in addition to any amounts made available under section 216(3)(A)(ii).’. [<-Struck out]

    [Struck out->] (h) DELETE SEPARATE AUDIT REQUIREMENT FOR THE HOME PROGRAM- Section 283 of such Act is amended-- [<-Struck out]

      [Struck out->] (1) by striking the section heading and inserting in lieu thereof the following: ‘audits by the comptroller general.’; [<-Struck out]

      [Struck out->] (2) by striking subsection (a); [<-Struck out]

      [Struck out->] (3) by striking ‘(b) AUDITS BY THE COMPTROLLER GENERAL- ’ and redesignating paragraphs (1) and (2) as subsections (a) and (b), respectively; and [<-Struck out]

      [Struck out->] (4) in subsection (a), as redesignated by paragraph (3), by striking the second sentence. [<-Struck out]

    [Struck out->] (i) HOME ENVIRONMENTAL REVIEW AMENDMENTS- Section 288 of such Act is amended-- [<-Struck out]

      [Struck out->] (1)(A) in the first sentence of subsection (a), by striking out ‘participating jurisdictions’ and inserting in lieu thereof the following: ‘jurisdictions, Indian tribes, or insular areas’; and [<-Struck out]

      [Struck out->] (B) in the first sentence of subsection (b) and in subsection (c)(4), by striking ‘participating jurisdiction’ each place it appears and inserting in lieu thereof the following: ‘jurisdiction, Indian tribe, or insular area’; and [<-Struck out]

      [Struck out->] (2) by inserting at the end of subsection (a) the following new sentences: ‘The regulations shall, among other matters, provide for the monitoring of the performance of environmental reviews under this section and, in the discretion of the Secretary, for the provision of facilitation of training for such performance and suspension or termination of the assumption under this section. The Secretary’s duty under the foregoing sentence shall not be construed as being in derogation of any responsibility assumed by a State or unit of general local government with respect to any particular release of funds.’; [<-Struck out]

      [Struck out->] (3) in subsection (d), by striking out ‘ASSISTANCE TO A STATE- In the case of assistance to States’ and inserting in lieu thereof the following: ‘ASSISTANCE TO UNITS OF GENERAL LOCAL GOVERNMENT FROM A STATE- In the case of assistance to units of general local government from a State’. [<-Struck out]

    [Struck out->] (j) USE OF CDBG FUNDS FOR HOME ADMINISTRATIVE EXPENSES- Section 105(a)(13) of the Housing and Community Development Act of 1974 is amended by inserting immediately after ‘charges related to’ the following: [<-Struck out]

      [Struck out->]
      ‘(A) administering the HOME program under title II of the Cranston-Gonzalez National Affordable Housing Act and (B)’. [<-Struck out]

    [Struck out->] (k) PROJECT DELIVERY COSTS- Section 105(a)(21) of such Act is amended by-- [<-Struck out]

      [Struck out->] (1) inserting immediately after ‘housing counseling’ the following: ‘in connection with tenant-based rental assistance and affordable housing projects assisted under title II of the Cranston-Gonzalez National Affordable Housing Act’; and [<-Struck out]

      [Struck out->] (2) striking ‘authorized’ and all that follows through ‘law’ and inserting in lieu thereof the following: ‘assisted under title II of the Cranston-Gonzalez National Affordable Housing Act’. [<-Struck out]

[Struck out->] REDUCE HOPE 3 MATCH REQUIREMENT TO 25 PERCENT [<-Struck out]

    [Struck out->] SEC. 212. Section 443(c)(1) of the Cranston-Gonzalez National Affordable Housing Act is amended by striking ‘33’ and inserting ‘25’. [<-Struck out]

[Struck out->] Subtitle C--Community Partnerships Against Crime Compac Program [<-Struck out]

    [Struck out->] SEC. 220. (a) CONFORMING PROVISIONS- (1) Section 5001 of the Anti-Drug Abuse Act of 1988 is amended-- [<-Struck out]

      [Struck out->] (A) by striking [<-Struck out]

[Struck out->]
‘Chapter 2--Public and Assisted Housing Drug Elimination’ [<-Struck out]

      [Struck out->] and inserting in lieu thereof the following: [<-Struck out]

[Struck out->]
‘Chapter 2--Community Partnerships Against Crime’; [<-Struck out]

      [Struck out->] (B) by striking ‘Congressional findings.’ and inserting in lieu thereof the following: ‘Purposes.’; and [<-Struck out]

      [Struck out->] (C) by adding after [<-Struck out]

      [Struck out->]
      ‘Sec. 5130. Authorization of appropriations.’ [<-Struck out]

      [Struck out->] the following: [<-Struck out]

      [Struck out->]
      ‘Sec. 5131. Technical assistance.’. [<-Struck out]

      [Struck out->] (2) The heading for chapter 2 of subtitle C of title V of the Anti-Drug Abuse Act of 1988 is amended to read as follows: [<-Struck out]

[Struck out->]
‘CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME’. [<-Struck out]

    [Struck out->] (b) SHORT TITLE, PURPOSES, AND AUTHORITY TO MAKE GRANTS- Sections 5121, 5122, and 5123 of the Public and Assisted Housing Drug Elimination Act of 1990 are amended to read as follows: [<-Struck out]

[Struck out->]
‘SEC. 5121. SHORT TITLE. [<-Struck out]

    [Struck out->]
    ‘This chapter may be cited as the ‘Community Partnerships Against Crime Act of 1993’. [<-Struck out]

[Struck out->]
‘SEC. 5122. PURPOSES. [<-Struck out]

    [Struck out->]
    ‘The purposes of this chapter are to-- [<-Struck out]

      [Struck out->]
      ‘(1) substantially expand and enhance the Federal Government’s commitment to eliminating crime in public housing; [<-Struck out]

      [Struck out->]
      ‘(2) broaden the scope of the Public and Assisted Housing Drug Elimination Act of 1990 to apply to all types of crime, and not simply crime that is drug-related; [<-Struck out]

      [Struck out->]
      ‘(3) target opportunities for long-term commitments of funding primarily to public housing agencies with serious crime problems; [<-Struck out]

      [Struck out->]
      ‘(4) encourage the involvement of a broad range of community-based groups, and residents of neighboring housing that is owned or assisted by the Secretary, in the development and implementation of anti-crime plans; [<-Struck out]

      [Struck out->]
      ‘(5) reduce crime and disorder in and around public housing through the expansion of community-oriented policing activities and problem solving; [<-Struck out]

      [Struck out->]
      ‘(6) provide training, information services, and other technical assistance to program participants; and [<-Struck out]

      [Struck out->]
      ‘(7) establish a standardized assessment system to evaluate need among public housing agencies, and to measure progress in reaching crime reduction goals. [<-Struck out]

[Struck out->]
‘SEC. 5123. AUTHORITY TO MAKE GRANTS. [<-Struck out]

    [Struck out->]
    ‘The Secretary of Housing and urban Development, in accordance with the provisions of this chapter, may make grants, for use in eliminating crime in and around public and other federally assisted low-income housing projects (1) to public housing agencies (including Indian housing authorities) and (2) using amounts appropriated for fiscal year 1994 only, to private, for-profit and nonprofit owners of federally assisted low-income housing. In designing the program, the Secretary shall consult with the Attorney General.’. [<-Struck out]

    [Struck out->] (c) ELIGIBLE ACTIVITIES- Section 5124 of such Act is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘(a) PUBLIC AND ASSISTED HOUSING- ’; [<-Struck out]

      [Struck out->] (2) by inserting in the introductory material, immediately after ‘used in’, the following: ‘and around’; [<-Struck out]

      [Struck out->] (3) in paragraph (3), by inserting immediately before the semicolon the following: ‘, such as fencing, lighting, locking, and surveillance systems’; [<-Struck out]

      [Struck out->] (4) by striking paragraph (4)(A) and inserting in lieu thereof the following new subparagraph: [<-Struck out]

        [Struck out->]
        ‘(A) to investigate crime; and’; [<-Struck out]

      [Struck out->] (5) in paragraph (6)-- [<-Struck out]

        [Struck out->] (A) by striking ‘in and around public or other federally assisted low-income housing projects’; and [<-Struck out]

        [Struck out->] (B) by striking ‘and’ after the semicolon; [<-Struck out]

      [Struck out->] (6) in paragraph (7)-- [<-Struck out]

        [Struck out->] (A) by striking ‘where a public housing agency receives a grant,’; [<-Struck out]

        [Struck out->] (B) by striking ‘drug abuse’ and inserting in lieu thereof ‘crime’; and [<-Struck out]

        [Struck out->] (C) by striking the period at the end and inserting in lieu thereof a colon; [<-Struck out]

      [Struck out->] (7) by adding the following new paragraphs after paragraph (7): [<-Struck out]

      [Struck out->]
      ‘(8) the employment or utilization of one or more individuals, including law enforcement officers, made available by contract or other cooperative arrangement with State or local law enforcement agencies, to engage in community- and problem-oriented policing involving interaction with members of the community on proactive crime control and prevention;’ [<-Struck out]

      [Struck out->]
      ‘(9) youth initiatives, such as activities involving training, education, after school programs, cultural programs, recreation and sports, career planning, and entrepreneurship and employment; and [<-Struck out]

      [Struck out->]
      ‘(10) resident service programs, such as job training, education programs, and other appropriate social services which address the contributing factors of crime.’; and [<-Struck out]

      [Struck out->] (8) by striking subsection (b). [<-Struck out]

    [Struck out->] (d) APPLICATIONS- Section 5125 of such Act is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) by adding the paragraph designation ‘(1)’ immediately after ‘IN GENERAL- ’; [<-Struck out]

        [Struck out->] (B) in the first sentence, by striking ‘, a public housing resident management corporation,’; [<-Struck out]

        [Struck out->] (C) in the second sentence, by striking ‘drug-related crime on the premises of’ and inserting in lieu thereof the following: ‘crime in and around’; and [<-Struck out]

        [Struck out->] (D) by adding the following new paragraphs at the end: [<-Struck out]

      [Struck out->]
      ‘(2) The Secretary shall, by regulation issued after notice and opportunity for public comment, set forth criteria for establishing a class of public housing agencies that have especially severe crime problems. Any public housing agency within this class may submit an application for a one-year grant under this chapter that, subject to the availability of appropriated amounts, shall be renewed for a period not exceeding the four subsequent years: Provided, That the Secretary finds, after an annual or more frequent performance review, that the public housing 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. [<-Struck out]

      [Struck out->]
      ‘(3) Any eligible applicant may submit an application for a grant for a period of up to two years. The Secretary may accord a preference to applications seeking a subsequent grant under this paragraph if the grant is to be used to continue or expand activities assisted under a previous grant under this paragraph and the Secretary finds that the applicant’s program under the prior grant is being managed soundly and demonstrates success. Any preferences under the preceding sentence shall not unreasonably prejudice the opportunities of other public housing agencies to be awarded grants under this paragraph.’; [<-Struck out]

      [Struck out->] (2) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) in the introductory material, by striking ‘subsections (c) and (d)’ and inserting in lieu thereof ‘subsections (a) and (c)’; [<-Struck out]

        [Struck out->] (B) in paragraph (1), by striking ‘drug-related crime problem in’ and inserting in lieu thereof the following: ‘crime problem in and around’; [<-Struck out]

        [Struck out->] (C) in paragraph (2), by inserting immediately after ‘crime problem in’ the following: ‘and around’; and [<-Struck out]

        [Struck out->] (D) in paragraph (4), by inserting after ‘local government’ the following: ‘, local community-based non-profit organizations, local resident organizations that represent the residents of neighboring projects that are owned or assisted by the Secretary,’; [<-Struck out]

      [Struck out->] (3) in subsection (c)(2) by striking ‘drug-related’ the two places it appears; and [<-Struck out]

      [Struck out->] (4) by striking subsection (d). [<-Struck out]

    [Struck out->] (e) DEFINITIONS- Section 5126 of such Act is amended by striking paragraphs (1) and (2), and renumbering paragraphs (3) and (4) as paragraphs (1) and (2), respectively. [<-Struck out]

    [Struck out->] (f) IMPLEMENTATION- Section 5127 of such Act is amended by striking ‘Cranston-Gonzalez National Affordable Housing Act’ and inserting in lieu thereof ‘Housing and Community Development Act of 1993’. [<-Struck out]

    [Struck out->] (g) REPORTS- Section 5128 of such Act is amended by striking ‘drug-related crime in’ and inserting in lieu thereof the following: ‘crime in and around’. [<-Struck out]

    [Struck out->] (h) AUTHORIZATION OF APPROPRIATIONS- Section 5130 of such Act is amended-- [<-Struck out]

      [Struck out->] (1) in the first sentence of subsection (a), by striking ‘$175,000,000 for fiscal year 1993’ and all that follows and inserting in lieu thereof: $265,000,000 for fiscal year 1994 and $325,000,000 for fiscal year 1995.’; [<-Struck out]

      [Struck out->] (2) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) by striking ‘SET-ASIDES’ and inserting in lieu thereof ‘SET-ASIDE’; [<-Struck out]

        [Struck out->] (B) by striking the first sentence; [<-Struck out]

        [Struck out->] (C) by striking ‘drug elimination’; [<-Struck out]

        [Struck out->] (D) by striking ‘fiscal years 1993 and 1994’ and inserting in lieu thereof ‘fiscal year 1994’; and [<-Struck out]

        [Struck out->] (E) by striking ‘and 5.0 percent’ and all that follows through the end of the sentence and inserting in lieu thereof a period; and [<-Struck out]

      [Struck out->] (3) by striking subsection (c) and section 520(k) of the Cranston-Gonzalez National Affordable Housing Act. [<-Struck out]

    [Struck out->] (i) TECHNICAL ASSISTANCE- Such Act is further amended by adding at the end thereof the following new section: [<-Struck out]

[Struck out->]
‘SEC. 5131. TECHNICAL ASSISTANCE. [<-Struck out]

    [Struck out->]
    ‘Of the amounts appropriated annually for each of fiscal years 1994 and 1995 to carry out this chapter, the Secretary is authorized to use up to $10,000,000, directly or indirectly, under grants, contracts, cooperative agreements, or otherwise, to provide training, information services, and other technical assistance to public housing agencies and other entities with respect to their participation in the program authorized by this chapter. Such technical assistance may include the establishment and operation of the clearinghouse on drug abuse in public housing and the regional training program on drug abuse in public housing under sections 5143 and 5144 of this Act. The Secretary is also authorized to use the foregoing amounts for obtaining assistance in establishing and managing assessment and evaluation criteria and specifications, and obtaining the opinions of experts in relevant fields.’. [<-Struck out]

[Struck out->] TITLE III--TECHNICAL AND OTHER AMENDMENTS [<-Struck out]

[Struck out->] Subtitle A--Public and Assisted Housing [<-Struck out]

[Struck out->] CORRECT THE DEFINITION OF FAMILY IN THE 1937 ACT TO CLARIFY THAT FAMILIES ARE NOT REQUIRED TO INCLUDE CHILDREN [<-Struck out]

    [Struck out->] SEC. 301. The first sentence of section 3(b)(3)(B) of the United States Housing Act of 1937 is amended by-- [<-Struck out]

      [Struck out->] (1) striking out ‘means’ and inserting ‘includes’; and [<-Struck out]

      [Struck out->] (2) inserting ‘and’ immediately after ‘children,’. [<-Struck out]

[Struck out->] ELIMINATE REQUIREMENT FOR IDENTIFICATION OF CIAP REPLACEMENT NEEDS [<-Struck out]

    [Struck out->] SEC. 302. (a) Section 14(d) of the United States Housing Act of 1937 is amended-- [<-Struck out]

      [Struck out->] (1) by striking paragraph (2); and [<-Struck out]

      [Struck out->] (2) in paragraph (4)-- [<-Struck out]

        [Struck out->] (A) by deleting ‘and replacements,’; and [<-Struck out]

        [Struck out->] (B) by striking ‘, (2),’. [<-Struck out]

    [Struck out->] (b) Section 14(f)(1) of such Act is amended-- [<-Struck out]

      [Struck out->] (1) by striking subparagraph (B); and [<-Struck out]

      [Struck out->] (2) in subparagraph (D), by striking ‘, (2),’. [<-Struck out]

[Struck out->] APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO INDIAN HOUSING [<-Struck out]

    [Struck out->] SEC. 303. (a) Section 201(b) of the United States Housing Act of 1937 is amended to read as follows-- [<-Struck out]

    [Struck out->]
    ‘(b) APPLICABILITY OF TITLE I- Except as otherwise provided by law, the provisions of title I shall apply to low-income housing developed or operated pursuant to a contract between the Secretary and an Indian housing authority.’. [<-Struck out]

    [Struck out->] (b) The amendment made by subsection (a) shall not affect provisions of the United States Housing Act of 1937 that were made applicable to public housing developed or operated pursuant to a contract between the Secretary of Housing and Urban Development and an Indian housing authority in accordance with section 201(b)(2) of such Act, as it existed before the effective date of this section. [<-Struck out]

    [Struck out->] (c) The provisions of sections 103(a)(1), 112, 114, 116, 118, 903, and 927 of the Housing and Community Development Act of 1992 shall also apply to public housing developed or operated pursuant to a contract between the Secretary of Housing and Urban Development and an Indian housing authority. [<-Struck out]

[Struck out->] INCREASE THE UNIT THRESHOLD ABOVE WHICH PHAS ARE REQUIRED TO ADOPT PROJECT-BASED ACCOUNTING [<-Struck out]

    [Struck out->] SEC. 304. Section 6(c)(4)(E) of the United States Housing Act of 1937 is amended by striking ‘250’ and inserting in lieu thereof ‘500’. [<-Struck out]

[Struck out->] Subtitle B--Multifamily Housing [<-Struck out]

[Struck out->] CORRECT ERRORS IN MULTIFAMILY MORTGAGE LIMITS [<-Struck out]

    [Struck out->] SEC. 310. Sections 207(c)(3), 213(b)(2), 220(d)(3)(B)(iii), and 234(e)(3) of the National Housing Act are each amended by striking ‘$59,160’ and inserting ‘$56,160’. [<-Struck out]

[Struck out->] FHA MULTIFAMILY RISK-SHARING; HFA PILOT PROGRAM AMENDMENTS [<-Struck out]

    [Struck out->] SEC. 311. (a) Section 542(c) of the Housing and Community Development Act of 1992 is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (2)(C), by striking the last sentence and inserting in lieu thereof the following new sentence: ‘Such agreements shall specify that the qualified housing finance agency and the Secretary shall share any loss in accordance with the risk-sharing agreement.’; [<-Struck out]

      [Struck out->] (2) in paragraph (2)(E)-- [<-Struck out]

        [Struck out->] (A) by inserting the clause designation ‘(i)’ before the first sentence; [<-Struck out]

        [Struck out->] (B) in the first sentence, by inserting after ‘subsection’ the following:’, except as provided in this section,’; and [<-Struck out]

        [Struck out->] (C) by adding the following new paragraph (2)(E)(ii): [<-Struck out]

        [Struck out->]
        ‘(ii) The mortgage shall-- [<-Struck out]

          [Struck out->]
          ‘(I) provide for complete amortization by periodic payments within such terms as the Secretary shall prescribe; [<-Struck out]

          [Struck out->]
          ‘(II) not exceed 40 years from the beginning of amortization; and [<-Struck out]

          [Struck out->]
          ‘(III) not exceed a loan-to-value or loan-to-replacement cost of 90 percent for profit-motivated owners and 100 percent for nonprofit owners.’; [<-Struck out]

      [Struck out->] (3) by adding the following new subparagraphs at the end of paragraph (2): [<-Struck out]

        [Struck out->]
        ‘(F) The Secretary, upon request of a qualified housing finance agency, may insure and make commitments to insure under this section any mortgage, advance, or loan otherwise eligible under this section, pursuant to a risk-sharing agreement providing that the housing finance agency will carry out (under a delegation or otherwise, and with or without compensation, but subject to audit, exception, or review requirements) such credit approval, appraisal, inspection, issuance of commitments, cost certification, servicing, property disposition, or other functions as the Secretary, pursuant to regulations, shall approve as consistent with the purpose of this section. All appraisals of property for mortgage insurance under this section shall be completed by a Certified General Appraiser in accordance with the Uniform Standards of Professional Appraisal Practice. [<-Struck out]

        [Struck out->]
        ‘(G) Qualified housing finance agencies shall make available to the Secretary or the Secretary’s designee, at the Secretary’s request, such financial and other records as the Secretary deems necessary for program review and monitoring purposes. [<-Struck out]

        [Struck out->]
        ‘(H) Notwithstanding any other provision of this section, no new, existing, or rehabilitated multifamily housing with respect to which a mortgage is insured under this section shall be operated for transient or hotel purposes. For purposes of this paragraph, the term ‘rental for transient or hotel purposes’ shall have such meaning as prescribed by the Secretary, but rental for any period less than 30 days shall in any event constitute rental for such purposes. [<-Struck out]

        [Struck out->]
        ‘(I) No mortgage with respect to multifamily housing may be insured under this section unless-- [<-Struck out]

          [Struck out->]
          ‘(i) the mortgagor certifies under oath that while such insurance remains outstanding, he or she will not rent, or permit the rental of, such housing or any part thereof for transient or hotel purposes; and [<-Struck out]

          [Struck out->]
          ‘(ii) the housing finance agency has entered into such contract with the mortgagor as the Secretary deems necessary to enable the housing finance agency to prevent or terminate any use of such property or project for transient or hotel purposes while the mortgage insurance remains outstanding.’; and [<-Struck out]

      [Struck out->] (4) by adding at the end thereof the following new paragraphs: [<-Struck out]

      [Struck out->]
      ‘(9) ENVIRONMENTAL AND OTHER REVIEWS- [<-Struck out]

        [Struck out->]
        ‘(A) NEPA- [<-Struck out]

          [Struck out->]
          ‘(i) IN GENERAL- (I) In order to assure that the policies of the National Environmental Policy Act of 1969 and other provisions of law which further the purposes of such Act (as specified in regulations issued by the Secretary) are most effectively implemented in connection with commitments to insure mortgages under subsection (c)(2), and to assure to the public undiminished protection of the environment, the Secretary, in lieu of the environmental protection procedures otherwise applicable, may under regulations provide for commitments to insure mortgages under subsection (c)(2) upon the request of qualified housing finance agencies under this subsection if the States or units of general local governments, as designated by the Secretary in accordance with regulations, assume all of the responsibilities for environmental review, decisionmaking, and action pursuant to such Act, and such other provisions of law as the regulations of the Secretary specify, that would otherwise apply to the Secretary with respect to the commitment or endorsement of mortgage insurance on particular properties. [<-Struck out]

          [Struck out->]
          ‘(II) The Secretary shall issue regulations to carry out this subparagraph only after consultation with the Council on Environmental Quality. Such regulations shall, among other matters, provide for monitoring of the performance of environmental reviews under this subparagraph and, in the discretion of the Secretary, for the provision or facilitation of training for such performance and suspension or termination of the assumption under clause (I). The Secretary’s duty under the foregoing sentence shall not be construed as being in derogation of any responsibility assumed by a State or unit of general local government with respect to any particular property under clause (I). [<-Struck out]

          [Struck out->]
          ‘(ii) PROCEDURE- The Secretary shall approve the commitment to insure subject to the procedures authorized by this paragraph only if, at least 15 days prior to such approval and prior to any commitment or endorsement of mortgage insurance on the property the qualified housing finance agency has submitted to the Secretary a request for such commitment to insure accompanied by a certification of the State or unit of general local government which meets the requirements of clause (iii). The Secretary’s approval of any such certification shall be deemed to satisfy the Secretary’s responsibilities under the National Environmental Policy Act of 1969 and such other provisions of law as the regulations of the Secretary specify insofar as those responsibilities relate to the commitment or endorsement of mortgage insurance on the property which is covered by such certification. [<-Struck out]

          [Struck out->]
          ‘(iii) CERTIFICATION- A certification under the procedures authorized by this paragraph shall-- [<-Struck out]

            [Struck out->]
            ‘(I) be in a form acceptable to the Secretary, [<-Struck out]

            [Struck out->]
            ‘(II) be executed by the chief executive officer or other officer of the State or unit of general local government who qualifies under regulations of the Secretary, [<-Struck out]

            [Struck out->]
            ‘(III) specify that the State or unit of general local government under this section has fully carried out its responsibilities as described under clause (i), and [<-Struck out]

            [Struck out->]
            ‘(IV) specify that the certifying officer consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 and each provision of law specified in regulations issued by the Secretary insofar as the provisions of such Act or other such provision of law apply pursuant to clause (i), and is authorized and consents on behalf of the State or unit of general local government and himself or herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of the responsibilities as such an official. [<-Struck out]

        [Struck out->]
        ‘(B) LEAD-BASED PAINT POISONING PREVENTION- In carrying out the requirements of section 302 of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822), the Secretary may provide by regulation for the assumption of all or part of the Secretary’s duties under such Act by qualified housing finance agencies, for purposes of this section. [<-Struck out]

        [Struck out->]
        ‘(C) CERTIFICATION OF SUBSIDY LAYERING COMPLIANCE- The requirements of section 102(d) of the Department of Housing and Urban Development Reform Act of 1989 shall be satisfied in connection with a commitment to insure a mortgage under this subsection by a certification by a qualified housing finance agency to the Secretary that the combination of Federal assistance provided in connection with a property for which a mortgage is to be insured shall not be any more than is necessary to provide affordable housing. [<-Struck out]

      [Struck out->]
      ‘(10) As used in this section-- [<-Struck out]

        [Struck out->]
        ‘(A) the term ‘mortgage’ means a first mortgage on real estate that is-- [<-Struck out]

          [Struck out->]
          ‘(i) owned in fee simple; or [<-Struck out]

          [Struck out->]
          ‘(ii) on a leasehold-- [<-Struck out]

            [Struck out->]
            ‘(I) under a lease for not less than 99 years which is renewable; or [<-Struck out]

            [Struck out->]
            ‘(II) under a lease having a period of not less than ten years to run beyond the maturity of the mortgage; and [<-Struck out]

        [Struck out->]
        ‘(B) the term ‘first mortgage’ means a single first lien given to secure advances on, or the unpaid purchase price of, real estate, under the laws of the State in which the real estate is located, together with the credit instrument, if any, secured thereby. Any other financing permitted on property insured under this section must be expressly subordinate to the insured mortgage; and [<-Struck out]

        [Struck out->]
        ‘(C) the terms ‘unit of general local government’ and ‘State’ mean the same as defined in section 102(a)(1) and (2), respectively, of the Housing and Community Development Act of 1974.’. [<-Struck out]

    [Struck out->] (b) Section 544(1) is amended to read as follows: [<-Struck out]

      [Struck out->]
      ‘(1) The term ‘multifamily housing’ means housing accommodations on the mortgaged property that are designed principally for residential use, conform to standards satisfactory to the Secretary, and consist of not less than five rental units on one site. These units may be detached, semi-detached, row houses, or multifamily structures.’. [<-Struck out]

[Struck out->] SUBSIDY LAYERING REVIEW [<-Struck out]

    [Struck out->] SEC. 312. Section 911 of the Housing and Community Development Act of 1992 is amended by-- [<-Struck out]

      [Struck out->] (1) striking subsection (a) and inserting in lieu thereof the following: [<-Struck out]

    [Struck out->]
    ‘(a) CERTIFICATION OF SUBSIDY LAYERING COMPLIANCE- The requirements of section 102(d) of the Department of Housing and Urban Development Reform Act of 1989 shall be satisfied in connection with projects receiving assistance within the jurisdiction of the Department of Housing and Urban Development and under section 42 of the Internal Revenue Code of 1986 by a certification by a housing credit agency to the Secretary, submitted in accordance with guidelines established by the Secretary, that the combination of Federal assistance provided in connection with a property for which assistance is to be provided within the jurisdiction of the Department of Housing and Urban Development and under section 42 of the Internal Revenue Code of 1986 shall not be any more than is necessary to provide affordable housing.’; and [<-Struck out]

      [Struck out->] (2) striking subsection (c) and inserting in lieu thereof the following: [<-Struck out]

    [Struck out->]
    ‘(c) REVOCATION BY SECRETARY- If the Secretary determines that a housing credit agency has failed to comply with the guidelines established under subsection (a), the Secretary may inform the housing credit agency that it may no longer submit certification of subsidy layering compliance under this section. In such circumstances, the responsibilities of section 102(d) of the Housing and Urban Development Reform Act for affected projects allocated a low income housing tax credit pursuant to section 42 of the Internal Revenue Code of 1986 shall be carried out by the Secretary.’. [<-Struck out]

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Housing and Community Development Act of 1993’.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

      Sec. 1. Short title.

      Sec. 2. Table of contents.

      Sec. 3. Definitions.

TITLE I--FHA MULTIFAMILY REFORMS

      Sec. 101. Multifamily property disposition.

      Sec. 102. Repeal of State agency multifamily property disposition demonstration.

      Sec. 103. RTC marketing and disposition of multifamily projects owned by HUD.

      Sec. 104. Civil money penalties against general partners and certain managing agents of multifamily housing projects.

      Sec. 105. Models for property disposition.

      Sec. 106. Preventing mortgage defaults.

      Sec. 107. Interest rates on assigned mortgages.

      Sec. 108. Authorization of appropriations.

TITLE II--ENHANCED PROGRAM FLEXIBILITY

Subtitle A--Office of Public and Indian Housing

      Sec. 201. Revitalization of severely distressed public housing.

      Sec. 202. Disallowance of earned income for residents who obtain employment.

      Sec. 203. Ceiling rents based on reasonable rental value.

      Sec. 204. Resident management program.

Subtitle B--Office of Community Planning and Development

      Sec. 211. Economic development initiative.

      Sec. 212. HOME investment partnerships.

      Sec. 213. HOPE match requirement.

      Sec. 214. Flexibility of CDBG program for disaster areas.

      Sec. 215. Flexibility of HOME program for disaster areas.

Subtitle C--Community Partnerships Against Crime

      Sec. 221. COMPAC program.

TITLE III--TECHNICAL AND OTHER AMENDMENTS

Subtitle A--Public and Assisted Housing

      Sec. 301. Correction to definition of family.

      Sec. 302. Identification of CIAP replacement needs.

      Sec. 303. Applicability of public housing amendments to Indian housing.

      Sec. 304. Project-based accounting.

      Sec. 305. Operating subsidy adjustments for anticipated fraud recoveries.

      Sec. 306. Technical assistance for lead hazard reduction grantees.

      Sec. 307. Environmental review in connection with grants for lead-based paint hazard reduction.

      Sec. 308. Fire safety in federally assisted housing.

      Sec. 309. Section 23 conversion projects.

      Sec. 310. Indemnification of contractors for intellectual property rights disputes.

Subtitle B--Multifamily Housing

      Sec. 321. Correction of multifamily mortgage limits.

      Sec. 322. FHA multifamily risk-sharing; HFA pilot program amendments.

      Sec. 323. Subsidy layering review.

Subtitle C--Rural Housing

      Sec. 331. Technical correction to rural housing preservation program.

SEC. 3. DEFINITIONS.

    As used in this Act--

      (1) the term ‘FHA’ means the Federal Housing Administration;

      (2) the term ‘Secretary’ means the Secretary of Housing and Urban Development; and

      (3) the term ‘RTC’ means the Resolution Trust Corporation.

TITLE I--FHA MULTIFAMILY REFORMS

SEC. 101. MULTIFAMILY PROPERTY DISPOSITION.

    (a) FINDINGS- The Congress finds that--

      (1) the portfolio of multifamily housing project mortgages insured by the FHA is severely troubled and at risk of default, requiring the Secretary to increase loss reserves from $5.5 billion in 1991 to $11.9 billion in 1992 to cover estimated future losses;

      (2) the inventory of multifamily housing projects owned by the Secretary has more than tripled since 1989, and, by the end of 1993, may exceed 75,000 units;

      (3) the cost to the Federal Government of owning and maintaining multifamily housing projects escalated to approximately $250 million in fiscal year 1992;

      (4) the inventory of multifamily housing projects subject to mortgages held by the Secretary has increased dramatically, to more than 2,400 mortgages, and approximately half of these mortgages, secured by projects with over 230,000 units, are delinquent;

      (5) the inventory of insured and formerly insured multifamily housing projects is rapidly deteriorating, endangering tenants and neighborhoods;

      (6) over 5 million very low-income families today have a critical need for housing that is affordable and habitable; and

      (7) the current statutory framework governing the disposition of multifamily housing projects effectively impedes the Government’s ability to dispose of properties, protect tenants, and ensure that projects are maintained over time.

    (b) MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING PROJECTS- Section 203 of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1701z-11) is amended to read as follows:

‘SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING PROJECTS.

    ‘(a) GOALS- The Secretary of Housing and Urban Development (hereafter in this section referred to as the ‘Secretary’) shall manage or dispose of multifamily housing projects that are owned by the Secretary or that are subject to a mortgage held by the Secretary in a manner that--

      ‘(1) is consistent with the National Housing Act and this section;

      ‘(2) will protect the financial interests of the Federal Government; and

      ‘(3) will, in the least costly fashion among reasonable available alternatives, further the goals of--

        ‘(A) preserving housing so that it can remain available to and affordable by low-income persons;

        ‘(B) preserving and revitalizing residential neighborhoods;

        ‘(C) maintaining existing housing stock in a decent, safe, and sanitary condition;

        ‘(D) minimizing the involuntary displacement of tenants;

        ‘(E) maintaining housing for the purpose of providing rental housing, cooperative housing, and homeownership opportunities for low-income persons; and

        ‘(F) minimizing the need to demolish multifamily housing projects.

    The Secretary, in determining the manner in which a project is to be managed or disposed of, shall balance competing goals relating to individual projects in a manner that will further the purposes of this section.

    ‘(b) DEFINITIONS- For purposes of this section, the following definitions shall apply:

      ‘(1) MULTIFAMILY HOUSING PROJECT- The term ‘multifamily housing project’ means any multifamily rental housing project that is, or prior to acquisition by the Secretary was, assisted or insured under the National Housing Act, or was subject to a loan under section 202 of the Housing Act of 1959.

      ‘(2) SUBSIDIZED PROJECT- The term ‘subsidized project’ means a multifamily housing project receiving any of the following types of assistance immediately prior to the assignment of the mortgage on such project to, or the acquisition of such mortgage by, the Secretary:

        ‘(A) Below market interest rate mortgage insurance under the proviso of section 221(d)(5) of the National Housing Act.

        ‘(B) Interest reduction payments made in connection with mortgages insured under section 236 of the National Housing Act.

        ‘(C) Direct loans made under section 202 of the Housing Act of 1959.

        ‘(D) Assistance in the form of--

          ‘(i) rent supplement payments under section 101 of the Housing and Urban Development Act of 1965;

          ‘(ii) additional assistance payments under section 236(f)(2) of the National Housing Act;

          ‘(iii) housing assistance payments made under section 23 of the United States Housing Act of 1937 (as in effect before January 1, 1975); or

          ‘(iv) housing assistance payments made under section 8 of the United States Housing Act of 1937 (excluding payments made for tenant-based assistance under section 8);

        if (except for purposes of section 183(c) of the Housing and Community Development Act of 1987) such assistance payments are made to more than 50 percent of the units in the project.

      ‘(3) FORMERLY SUBSIDIZED PROJECT- The term ‘formerly subsidized project’ means a multifamily housing project owned by the Secretary that was a subsidized project immediately prior to its acquisition by the Secretary.

      ‘(4) UNSUBSIDIZED PROJECT- The term ‘unsubsidized project’ means a multifamily housing project owned by the Secretary that is not a subsidized project or a formerly subsidized project.

    ‘(c) MANAGEMENT OR DISPOSITION OF PROPERTY-

      ‘(1) DISPOSITION TO PURCHASERS- The Secretary is authorized, in carrying out this section, to dispose of a multifamily housing project owned by the Secretary on a negotiated, competitive bid, or other basis, on such terms as the Secretary deems appropriate considering the low-income character of the project and the requirements of subsection (a), to a purchaser determined by the Secretary to be capable of--

        ‘(A) satisfying the conditions of the disposition plan;

        ‘(B) implementing a sound financial and physical management program that is designed to enable the project to meet anticipated operating and repair expenses to ensure that the project will remain in decent, safe, and sanitary condition;

        ‘(C) responding to the needs of the tenants and working cooperatively with tenant organizations;

        ‘(D) providing adequate organizational, staff, and financial resources to the project; and

        ‘(E) meeting such other requirements as the Secretary may determine.

      ‘(2) CONTRACTING FOR MANAGEMENT SERVICES- The Secretary is authorized, in carrying out this section--

        ‘(A) to contract for management services for a multifamily housing project that is owned by the Secretary (or for which the Secretary is mortgagee in possession), on a negotiated, competitive bid, or other basis at a price determined by the Secretary to be reasonable, with a manager the Secretary has determined is capable of--

          ‘(i) implementing a sound financial and physical management program that is designed to enable the project to meet anticipated operating and maintenance expenses to ensure that the project will remain in decent, safe, and sanitary condition;

          ‘(ii) responding to the needs of the tenants and working cooperatively with tenant organizations;

          ‘(iii) providing adequate organizational, staff, and other resources to implement a management program; and

          ‘(iv) meeting such other requirements as the Secretary may determine; and

        ‘(B) to require the owner of a multifamily housing project that is subject to a mortgage held by the Secretary to contract for management services for the project in the manner described in subparagraph (A).

    ‘(d) MAINTENANCE OF HOUSING PROJECTS-

      ‘(1) HOUSING PROJECTS OWNED BY THE SECRETARY- In the case of multifamily housing projects that are owned by the Secretary (or for which the Secretary is mortgagee in possession), the Secretary shall--

        ‘(A) to the greatest extent possible, maintain all such occupied projects in a decent, safe, and sanitary condition;

        ‘(B) to the greatest extent possible, maintain full occupancy in all such projects; and

        ‘(C) maintain all such projects for purposes of providing rental or cooperative housing.

      ‘(2) HOUSING PROJECTS SUBJECT TO A MORTGAGE HELD BY THE SECRETARY- In the case of any multifamily housing project that is subject to a mortgage held by the Secretary, the Secretary shall require the owner of the project to carry out the requirements of paragraph (1).

    ‘(e) REQUIRED ASSISTANCE- In carrying out the goals specified in subsection (a), the Secretary shall take not less than one of the following actions:

      ‘(1) CONTRACT WITH OWNER- Enter into contracts under section 8 of the United States Housing Act of 1937, to the extent budget authority is available, with owners of multifamily housing projects that are acquired by a purchaser other than the Secretary at foreclosure or after sale by the Secretary.

        ‘(A) SUBSIDIZED OR FORMERLY SUBSIDIZED PROJECTS RECEIVING CERTAIN ASSISTANCE- In the case of a subsidized project referred to in subparagraph (A), (B), or (C) of subsection (b)(2) or a formerly subsidized project that was subsidized as described in any such subparagraph--

          ‘(i) the contract shall be sufficient to assist at least all units covered by an assistance contract under any of the authorities referred to in subsection (b)(2)(D) before acquisition, unless the Secretary acts pursuant to the provisions of subparagraph (C) of this paragraph;

          ‘(ii) in the case of units requiring project-based rental assistance pursuant to clause (i) that are occupied by families who are not eligible for assistance under section 8, a contract under this subparagraph shall also provide that when a vacancy occurs, the owner shall lease the available unit to a family eligible for assistance under section 8; and

          ‘(iii) the Secretary shall take actions to ensure the availability and affordability, as defined in paragraph (3)(B), for the remaining useful life of the project, as defined by the Secretary, of any unit located in any project referred to in subparagraph (A), (B), or (C) of subsection (b)(2) that does not otherwise receive project-based rental assistance under this subparagraph. To carry out this clause, the Secretary may require purchasers to establish use or rent restrictions on these units.

        ‘(B) SUBSIDIZED OR FORMERLY SUBSIDIZED PROJECTS RECEIVING OTHER ASSISTANCE- In the case of a subsidized project referred to in subsection (b)(2)(D) or a formerly subsidized project that was subsidized as described in subsection (b)(2)(D)--

          ‘(i) the contract shall be sufficient to assist at least all units in the project that are covered, or that were covered immediately before foreclosure on or acquisition of the project by the Secretary, by an assistance contract under any of the authorities referred to in such subsection, unless the Secretary acts pursuant to provisions of subparagraph (C); and

          ‘(ii) in the case of units requiring project-based rental assistance pursuant to clause (i) that are occupied by families who are not eligible for assistance under section 8, a contract under this paragraph shall also provide that when a vacancy occurs, the owner shall lease the available unit to a family eligible for assistance under section 8.

        ‘(C) EXCEPTIONS TO SUBPARAGRAPHS (A) AND (B)- In lieu of providing project-based rental assistance under subparagraph (A) or (B), the Secretary may require certain units in unsubsidized projects to contain use restrictions providing that such units will be available to and affordable by very low-income families for the remaining useful life of the project, as defined by the Secretary, if--

          ‘(i) the Secretary matches any reduction in the number of units otherwise required to be assisted with project-based rental assistance under subparagraph (A) or (B) with at least an equivalent increase in the number of units made affordable, as such term is defined in paragraph (3)(B), to very low-income persons within unsubsidized projects;

          ‘(ii) the Secretary makes tenant-based assistance under section 8 available to low-income tenants residing in units otherwise requiring project-based rental assistance under subparagraph (A) or (B) upon disposition; and

          ‘(iii) the units described in clause (i) are located within the same market area.

        ‘(D) CONTRACT REQUIREMENTS FOR UNSUBSIDIZED PROJECTS- Notwithstanding actions that are taken pursuant to subparagraph (C), in any unsubsidized project--

          ‘(i) the contract shall be at least sufficient to provide project-based rental assistance for all units that are covered or were covered immediately before foreclosure or acquisition by an assistance contract under--

            ‘(I) section 8(b)(2) of the United States Housing Act of 1937, as such section existed before October 1, 1983 (new construction and substantial rehabilitation); section 8(b) of such Act (property disposition); section 8(d)(2) of such Act (project-based certificates); section 8(e)(2) of such Act (moderate rehabilitation); section 23 of such Act (as in effect before January 1, 1975); or section 101 of the Housing and Urban Development Act of 1965 (rent supplements); or

            ‘(II) section 8 of the United States Housing Act of 1937, following conversion from section 101 of the Housing and Urban Development Act of 1965; and

          ‘(ii) the Secretary shall make available tenant-based assistance under section 8 of the United States Housing Act of 1937 to tenants currently residing in units that were covered by an assistance contract under the Loan Management Set-Aside program under section 8(b) of the United States Housing Act of 1937 immediately before foreclosure or acquisition of the project by the Secretary.

      ‘(2) ANNUAL CONTRIBUTION CONTRACTS- In the case of unsubsidized multifamily housing projects that are acquired by a purchaser other than the Secretary at foreclosure or after sale by the Secretary, enter into annual contribution contracts with public housing agencies to provide tenant-based assistance under section 8 of the United States Housing Act of 1937 to all low-income families who are eligible for such assistance on the date that the project is acquired by the purchaser. The Secretary shall take action under this paragraph only after making a determination that there is an adequate supply of habitable housing in the area that is available to and affordable by low-income families using such assistance. Actions may also be taken pursuant to this paragraph in connection with not more than 10 percent of the aggregate number of units in subsidized or formerly subsidized projects disposed of by the Secretary in each fiscal year.

      ‘(3) OTHER ASSISTANCE-

        ‘(A) IN GENERAL- In accordance with the authority provided under the National Housing Act, reduce the selling price, apply use or rent restrictions on certain units, or provide other financial assistance to the owners of multifamily housing projects that are acquired by a purchaser other than the Secretary at foreclosure, or after sale by the Secretary, on terms that will ensure that at least those units otherwise required to receive project-based section 8 assistance pursuant to subparagraph (A), (B), or (D) of paragraph (1) are available to and affordable by low-income persons for the remaining useful life of the project, as defined by the Secretary.

        ‘(B) DEFINITION- A unit shall be considered affordable under this paragraph if--

          ‘(i) for very low-income tenants, the rent for such unit does not exceed 30 percent of 50 percent of the area median income, as determined by the Secretary, with adjustments for family size; and

          ‘(ii) for low-income tenants other than very low-income tenants, the rent for such unit does not exceed 30 percent of 80 percent of the area median income, as determined by the Secretary, with adjustments for family size.

        ‘(C) VERY LOW-INCOME TENANTS- The Secretary shall provide assistance under section 8 of the United States Housing Act of 1937 to any very low-income tenant currently residing in a unit otherwise required to receive project-based rental assistance under section 8, pursuant to subparagraph (A), (B), or (D) of paragraph (1), if the rents charged such tenants as a result of actions taken pursuant to this paragraph exceed the amount payable as rent under section 3(a) of the United States Housing Act of 1937.

      ‘(4) TRANSFER FOR USE UNDER OTHER PROGRAMS OF THE SECRETARY-

        ‘(A) IN GENERAL- Enter into an agreement providing for the transfer of a multifamily housing project--

          ‘(i) to a public housing agency for use of the project as public housing; or

          ‘(ii) to an owner or another appropriate entity for use of the project under section 202 of the Housing Act of 1959 or under section 811 of the Cranston-Gonzalez National Affordable Housing Act.

        ‘(B) REQUIREMENTS FOR AGREEMENT- The agreement described in subparagraph (A) shall--

          ‘(i) contain such terms, conditions, and limitations as the Secretary determines appropriate, including requirements to assure use of the project under the public housing, section 202, and section 811 programs; and

          ‘(ii) ensure that no current tenant will be displaced as a result of actions taken under this paragraph.

    ‘(f) OTHER ASSISTANCE- In addition to the actions required by subsection (e), the Secretary may take any of the following actions:

      ‘(1) SHORT-TERM LOANS- Provide short-term loans to facilitate the sale of multifamily housing projects to nonprofit organizations or to public agencies if--

        ‘(A) authority for such loans is provided in advance in an appropriations Act;

        ‘(B) such loans are for a term of not more than 5 years;

        ‘(C) the Secretary is presented with satisfactory documentation, evidencing a commitment of permanent financing to replace such short-term loan, from a lender who meets standards set forth by the Secretary; and

        ‘(D) the terms of such loans are consistent with prevailing practices in the marketplace or the provision of such loans results in no cost to the Government, as defined in section 502 of the Congressional Budget Act.

      ‘(2) TENANT-BASED ASSISTANCE- Make available tenant-based assistance under section 8 of the United States Housing Act of 1937 to very low-income families that do not otherwise qualify for project-based rental assistance.

      ‘(3) ALTERNATIVE USES-

        ‘(A) IN GENERAL- Notwithstanding any other provision of law, and subject to notice to and comment from existing tenants, allow not more than--

          ‘(i) 5 percent of the total number of units in multifamily housing projects that are disposed of by the Secretary during each fiscal year to be made available for uses other than rental or cooperative housing, including low-income homeownership opportunities, community space, office space for tenant or housing-related service providers or security programs, or small business uses, if such uses benefit the tenants of the project; and

          ‘(ii) 5 percent of the total number of units in multifamily housing projects that are disposed of by the Secretary during each fiscal year to be used in any manner, if the Secretary and the unit of general local government or area-wide governing body determine that such use will further fair housing, community development, or neighborhood revitalization goals.

        ‘(B) DISPLACEMENT PROTECTION- The Secretary shall--

          ‘(i) make available tenant-based assistance under section 8 of the United States Housing Act of 1937 to any tenant displaced as a result of actions taken by the Secretary pursuant to subparagraph (A); and

          ‘(ii) take such actions as the Secretary determines necessary to ensure the successful use of any tenant-based assistance provided under this subparagraph.

      ‘(4) AUTHORIZATION OF USE OR RENT RESTRICTIONS IN UNSUBSIDIZED PROJECTS- In carrying out the goals specified in subsection (a), the Secretary may require certain units in unsubsidized projects upon disposition to contain use or rent restrictions providing that such units will be available to and affordable by very low-income persons for the remaining useful life of the property, as defined by the Secretary.

    ‘(g) CONTRACT REQUIREMENTS-

      ‘(1) CONTRACT TERM-

        ‘(A) IN GENERAL- Contracts for project-based rental assistance under section 8 of the United States Housing Act of 1937 provided pursuant to this section shall be for a term of not more than 15 years; and

        ‘(B) CONTRACT TERM OF LESS THAN 15 YEARS- To the extent that units receive project-based rental assistance for a contract term of less than 15 years, the Secretary shall require that rents charged to tenants for such units shall not exceed the amount payable for rent under section 3(a) of the United States Housing Act of 1937 for a period of at least 15 years.

      ‘(2) CONTRACT RENT-

        ‘(A) IN GENERAL- The Secretary shall set contract rents for section 8 project-based rental contracts issued under this section at levels that, in conjunction with other resources available to the purchaser, provide for the necessary costs of rehabilitation of such project and do not exceed the percentage of the existing housing fair market rents for the area, as determined by the Secretary under section 8(c) of the United States Housing Act of 1937.

        ‘(B) UP-FRONT GRANTS- If such an approach is determined to be more cost-effective, the Secretary may utilize the budget authority provided for project-based section 8 contracts issued under this section to

          ‘(i) provide project-based section 8 rental assistance; and

          ‘(ii) provide up-front grants for the necessary costs of rehabilitation.

    ‘(h) DISPOSITION PLAN-

      ‘(1) IN GENERAL- Prior to the sale of a multifamily housing project that is owned by the Secretary, the Secretary shall develop a disposition plan for the project that specifies the minimum terms and conditions of the Secretary for disposition of the project, the initial sales price that is acceptable to the Secretary, and the assistance that the Secretary plans to make available to a prospective purchaser in accordance with this section. The initial sales price shall reflect the intended use of the property after sale.

      ‘(2) COMMUNITY AND TENANT INPUT INTO DISPOSITION PLANS AND SALES-

        ‘(A) IN GENERAL- In carrying out this section, the Secretary shall develop procedures to obtain appropriate and timely input into disposition plans from officials of the unit of general local government affected, the community in which the project is situated, and the tenants of the project.

        ‘(B) TENANT ORGANIZATIONS- The Secretary shall develop procedures to facilitate, where feasible and appropriate, the sale of multifamily housing projects to existing tenant organizations with demonstrated capacity or to public or nonprofit entities that represent or are affiliated with existing tenant organizations.

        ‘(C) TECHNICAL ASSISTANCE-

          ‘(i) IN GENERAL- To carry out the procedures developed under subparagraphs (A) and (B), the Secretary is authorized to provide technical assistance, directly or indirectly.

          ‘(ii) TECHNICAL ASSISTANCE PROVIDERS- Recipients of technical assistance funding under the Emergency Low Income Housing Preservation Act of 1987, the Low-Income Housing Preservation and Resident Homeownership Act of 1990, subtitle B of title IV of the Cranston-Gonzalez National Affordable Housing Act, shall be permitted to provide technical assistance to the extent of such funding under any of such programs or under this section, notwithstanding the source of funding.

          ‘(iii) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated $5,000,000 to carry out this subparagraph. In addition, the Secretary is authorized to use amounts appropriated for technical assistance under the Emergency Low Income Housing Preservation Act of 1987, the Low-Income Housing Preservation and Resident Homeownership Act of 1990, subtitle B of title IV of the Cranston-Gonzalez National Affordable Housing Act, for the provision of technical assistance under this section.

    ‘(i) RIGHT OF FIRST REFUSAL-

      ‘(1) PROCEDURE-

        ‘(A) NOTIFICATION BY SECRETARY OF THE ACQUISITION OF TITLE- Not later than 30 days after the Secretary acquires title to a multifamily housing project, the Secretary shall notify the appropriate unit of general local government and State agency or agencies designated by the Governor of the acquisition of such title.

        ‘(B) EXPRESSION OF INTEREST- Not later than 45 days after receiving notification from the Secretary under subparagraph (A), the unit of general local government or designated State agency may submit to the Secretary a preliminary expression of interest in the project. The Secretary may take such actions as may be necessary to require the unit of general local government or designated State agency to substantiate such interest.

        ‘(C) TIMELY EXPRESSION OF INTEREST- If the unit of general local government or designated State agency has expressed interest in the project before the expiration of the 45-day period referred to in subparagraph (B) and has substantiated such interest if requested, the Secretary shall notify the unit of general local government or designated State agency, within a reasonable period of time, of the terms and conditions of the disposition plan, in accordance with subsection (h). The Secretary shall then give the unit of general local government or designated State agency not more than 90 days after the date of such notification to make an offer to purchase the project.

        ‘(D) NO TIMELY EXPRESSION OF INTEREST- If the unit of general local government or designated State agency does not express interest before the expiration of the 45-day period referred to in subparagraph (B), or does not substantiate an expressed interest if requested, the Secretary may offer the project for sale to any interested person or entity.

      ‘(2) ACCEPTANCE OF OFFERS- If the Secretary has given the unit of general local government or designated State agency 90 days to make an offer to purchase the project, the Secretary shall accept an offer that complies with the terms and conditions of the disposition plan. The Secretary may accept an offer that does not comply with the terms and conditions of the disposition plan if the Secretary determines that the offer will further the goals specified in subsection (a) by actions that include extension of the duration of low-income affordability restrictions or otherwise restructuring the transaction in a manner that enhances the long-term affordability for low-income persons. The Secretary shall, in particular, have discretion to reduce the initial sales price in exchange for the extension of low-income affordability restrictions beyond the period of assistance contemplated by the attachment of assistance pursuant to subsection (e) or for an increase in the number of units that are available to and affordable by low-income families. If the Secretary and the unit of general local government or designated State agency cannot reach agreement within 90 days, the Secretary may offer the project for sale to the general public.

      ‘(3) PURCHASE BY UNIT OF GENERAL LOCAL GOVERNMENT OR DESIGNATED STATE AGENCY- Notwithstanding any other provision of law, a unit of general local government (including a public housing agency) or designated State agency may purchase multifamily housing projects in accordance with this subsection.

      ‘(4) APPLICABILITY- This subsection shall apply to projects that are acquired on or after the effective date of this subsection. With respect to projects acquired before such effective date, the Secretary may apply--

        ‘(A) the requirements of paragraphs (2) and (3) of section 203(e) as such paragraphs existed immediately before the effective date of this subsection; or

        ‘(B) the requirements of paragraphs (1) and (2) of this subsection, if the Secretary gives the unit of general local government or designated State agency--

          ‘(i) 45 days to express interest in the project; and

          ‘(ii) if the unit of general local government or designated State agency expresses interest in the project before the expiration of the 45-day period, and substantiates such interest if requested, 90 days from the date of notification of the terms and conditions of the disposition plan to make an offer to purchase the project.

    ‘(j) DISPLACEMENT OF TENANTS AND RELOCATION ASSISTANCE-

      ‘(1) IN GENERAL- Whenever tenants will be displaced as a result of the disposition of, or repairs to, a multifamily housing project that is owned by the Secretary (or for which the Secretary is mortgagee in possession), the Secretary shall identify tenants who will be displaced, and shall notify all such tenants of their pending displacement and of any relocation assistance that may be available. In the case of a multifamily housing project that is not owned by the Secretary (and for which the Secretary is not mortgagee in possession), the Secretary shall require the owner of the project to carry out the requirements of this paragraph.

      ‘(2) RIGHTS OF DISPLACED TENANTS- The Secretary shall assure for any such tenant (who continues to meet applicable qualification standards) the right--

        ‘(A) to return, whenever possible, to a repaired unit;

        ‘(B) to occupy a unit in another multifamily housing project owned by the Secretary;

        ‘(C) to obtain housing assistance under the United States Housing Act of 1937; or

        ‘(D) to receive any other available relocation assistance as the Secretary determines to be appropriate.

    ‘(k) MORTGAGE AND PROJECT SALES-

      ‘(1) IN GENERAL- The Secretary may not approve the sale of any loan or mortgage held by the Secretary (including any loan or mortgage owned by the Government National Mortgage Association) on any subsidized project or formerly subsidized project, unless such sale is made as part of a transaction that will ensure that such project will continue to operate at least until the maturity date of such 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 assignment of the loan or mortgage on such project to the Secretary.

      ‘(2) SALE OF CERTAIN PROJECTS- The Secretary may not approve the sale of any subsidized project--

        ‘(A) that is subject to a mortgage held by the Secretary; or

        ‘(B) if the sale transaction involves the provision of any additional subsidy funds by the Secretary or a recasting of the mortgage;

      unless such sale is made as part of a transaction that will ensure that such 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 sale of the project.

      ‘(3) MORTGAGE SALES TO STATE AND LOCAL GOVERNMENTS- Notwithstanding any provision of law that may require competitive sales or bidding, the Secretary may carry out negotiated sales of mortgages held by the Secretary that are secured by subsidized or formerly subsidized multifamily housing projects, without the competitive selection of purchasers or intermediaries, to units of general local government or State agencies, or groups of investors that include at least 1 such unit of general local government or State agency, if the negotiations are conducted with such agencies, except that--

        ‘(A) the terms of any such sale shall include the agreement of the purchasing agency or unit of local government or State agency to act as mortgagee or owner of a beneficial interest in such mortgages, in a manner consistent with maintaining the projects that are subject to such mortgages for occupancy by the general tenant group intended to be served by the applicable mortgage insurance program, including, to the extent the Secretary determines appropriate, authorizing such unit of local government or State agency to enforce the provisions of any regulatory agreement or other program requirements applicable to the related projects; and

        ‘(B) the sales prices for such mortgages shall be, in the determination of the Secretary, the best prices that may be obtained for such mortgages from a unit of general local government or State agency, consistent with the expectation and intention that the projects financed will be retained for use under the applicable mortgage insurance program for the life of the initial mortgage insurance contract.

      ‘(4) SALE OF MORTGAGES COVERING UNSUBSIDIZED PROJECTS- Notwithstanding any other provision of law, the Secretary may sell mortgages held on unsubsidized projects on such terms and conditions as the Secretary may prescribe.

    ‘(l) PROJECT-BASED RENTAL ASSISTANCE FOR TERM OF LESS THAN 15 YEARS- Notwithstanding subsection (g), project-based rental assistance in connection with the disposition of a multifamily housing project may be provided for a contract term of less than 15 years if such assistance is provided--

      ‘(1) under a contract authorized under section 6 of the HUD Demonstration Act of 1993; and

      ‘(2) pursuant to a disposition plan under this section for a project that is determined by the Secretary to be otherwise in compliance with this section.

    ‘(m) REPORT TO CONGRESS- Not later than June 1 of each year, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives, a report describing the status of multifamily housing projects owned by or subject to mortgages held by the Secretary. The report shall include--

      ‘(1) the name, address, and size of each project;

      ‘(2) the nature and date of assignment;

      ‘(3) the status of the mortgage;

      ‘(4) the physical condition of the project;

      ‘(5) an occupancy profile of the project, including the income, family size, and race of current residents as well as the rents paid by such residents;

      ‘(6) the proportion of units in a project that are vacant;

      ‘(7) the date on which the Secretary became mortgagee in possession;

      ‘(8) the date and conditions of any foreclosure sale;

      ‘(9) the date of acquisition by the Secretary;

      ‘(10) the date and conditions of any property disposition sale;

      ‘(11) a description of actions undertaken pursuant to this section, including--

        ‘(A) a comparison of results between actions taken after the date of enactment of the Housing and Community Development Act of 1993 and actions taken in the years preceding such date of enactment;

        ‘(B) a description of any impediments to the disposition or management of multifamily housing projects, together with a recommendation of proposed legislative or regulatory changes designed to ameliorate such impediments;

        ‘(C) a description of actions taken to restructure or commence foreclosure on delinquent multifamily mortgages held by the Department; and

        ‘(D) a description of actions taken to monitor and prevent the default of multifamily housing mortgages held by the Federal Housing Administration;

      ‘(12) a description of any of the functions performed in connection with this section that are contracted out to public or private entities or to States, including--

        ‘(A) the costs associated with such delegation;

        ‘(B) the implications of contracting out or delegating such functions for current Department field or regional personnel, including anticipated personnel or work load reductions;

        ‘(C) necessary oversight required by Department personnel, including anticipated personnel hours devoted to such oversight;

        ‘(D) a description of any authority granted to such public or private entities or States in conjunction with the functions that have been delegated or contracted out or that are not otherwise available for use by Department personnel; and

        ‘(E) the extent to which such public or private entities or States include tenants of multifamily housing projects in the disposition planning for such projects;

      ‘(13) a description of the activities carried out under subsection (j) during the preceding year; and

      ‘(14) a description and assessment of the rules, guidelines, and practices governing the Department’s management of multifamily housing projects that are owned by the Secretary (or for which the Secretary is mortgagee in possession) as well as the steps that the Secretary has taken or plans to take to improve the management performance of the Department.’.

    (c) EFFECTIVE DATE- The Secretary shall, by notice published in the Federal Register, which shall take effect upon publication, establish such requirements as may be necessary to implement the amendments made by this section. The notice shall invite public comments and, not later than 12 months after the date on which the notice is published, the Secretary shall issue final regulations based on the initial notice, taking into account any public comments received.

SEC. 102. REPEAL OF STATE AGENCY MULTIFAMILY PROPERTY DISPOSITION DEMONSTRATION.

    Section 184 of the Housing and Community Development Act of 1987 (12 U.S.C. 1701z-11 note) is hereby repealed.

SEC. 103. RTC MARKETING AND DISPOSITION OF MULTIFAMILY PROJECTS OWNED BY HUD.

    (a) AUTHORIZATION- The Secretary may carry out a demonstration with not more than 50 unsubsidized multifamily housing projects owned by the Secretary, using the RTC for the marketing and disposition of the projects. Any such demonstration shall be carried out pursuant to an agreement between the RTC and the Secretary on such terms and conditions as are acceptable to the RTC and the Secretary. The RTC shall establish policies and procedures for marketing and disposition, subject to review and approval by the Secretary.

    (b) RULES GOVERNING THE DEMONSTRATION-

      (1) IN GENERAL- Except as provided in paragraph (2), in carrying out the provisions of this section, the RTC shall dispose of unsubsidized multifamily housing projects pursuant to the provisions of section 21A(c) of the Federal Home Loan Bank Act.

      (2) EXCEPTION- Notwithstanding paragraph (1), a very low-income tenant currently residing in a unit otherwise required under subsection (e)(1)(D) of section 203 of the Housing and Community Development Amendments of 1978 to receive project-based rental assistance under section 8, shall upon disposition pay not more than the amount payable as rent under section 3(a) of the United States Housing Act of 1937.

    (c) DETERMINATION OF PROJECTS INCLUDED- In determining which projects to include in the demonstration, the Secretary and the RTC shall take into consideration--

      (1) the prior experience of the RTC in disposing of other multifamily housing projects in the jurisdictions in which such projects are located; and

      (2) such other factors as the Secretary and the RTC determine to be appropriate.

    (d) REIMBURSEMENT- The agreement entered into pursuant to subsection (a) shall provide that the Secretary shall reimburse the RTC for the direct costs associated with the demonstration, including the costs of administration and marketing, property management, and any repair and rehabilitation. The Secretary may use proceeds from the sale of the projects to reimburse the RTC for its costs.

    (e) REPORTS-

      (1) ANNUAL REPORTS- The Secretary and the RTC shall jointly submit an annual report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives detailing the progress of the demonstration.

      (2) FINAL REPORT- Not later than 3 months after the completion of the demonstration, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a report describing the results of the demonstration and any recommendations for legislative action.

    (f) TERMINATION- The demonstration under this section shall not extend beyond the termination date of the RTC.

SEC. 104. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS AND CERTAIN MANAGING AGENTS OF MULTIFAMILY HOUSING PROJECTS.

    (a) CIVIL MONEY PENALTIES AGAINST MULTIFAMILY MORTGAGORS- Section 537 of the National Housing Act (12 U.S.C. 1735f-15) is amended--

      (1) in subsection (b)(1), by inserting after ‘mortgagor’ the second place it appears the following: ‘or general partner of a partnership mortgagor’;

      (2) in subsection (c)--

        (A) by striking the heading and inserting the following:

    ‘(c) OTHER VIOLATIONS- ’; and

        (B) in paragraph (1)--

          (i) by striking ‘The Secretary may’ and all that follows through the colon and inserting the following:

        ‘(A) LIABLE PARTIES- The Secretary may also impose a civil money penalty under this section on--

          ‘(i) any mortgagor of a property that includes 5 or more living units and that has a mortgage insured, coinsured, or held pursuant to this Act;

          ‘(ii) the general partner of a partnership mortgagor of such property; or

          ‘(iii) any agent employed to manage the property that has an identity of interest with the mortgagor or the general partner of a partnership mortgagor of such property.

        ‘(B) VIOLATIONS- A penalty may be imposed under this paragraph for knowingly and materially taking any of the following actions:’;

          (ii) in subparagraph (B), as redesignated, by redesignating subparagraphs (A) through (L) as clauses (i) through (xii), respectively; and

          (iii) by adding after clause (xii), as redesignated, the following new clauses:

          ‘(xiii) Failure to maintain the premises, accommodations, and the grounds and equipment appurtenant thereto in good repair and condition in accordance with regulations and requirements of the Secretary.

          ‘(xiv) Failure, by a mortgagor or general partner of a partnership mortgagor, to provide management for the project that is acceptable to the Secretary pursuant to regulations and requirements of the Secretary.’; and

          (iv) in the last sentence, by deleting ‘of such agreement’ and inserting ‘of this subsection’;

      (3) in subsection (d)(1)(B), by inserting after ‘mortgagor’ the following: ‘, general partner of a partnership mortgagor, or identity of interest agent employed to manage the property,’;

      (4) in subsection (d), by adding at the end the following new paragraph:

      ‘(5) PAYMENT OF PENALTY- No payment of a civil money penalty levied under this section shall be payable out of project income.’;

      (5) in subsection (e)(1), by deleting ‘a mortgagor’ and inserting ‘an entity or person’;

      (6) in subsection (f), by inserting after ‘mortgagor’ each place such term appears the following: ‘, general partner of a partnership mortgagor, or identity of interest agent employed to manage the property,’;

      (7) by striking the heading of subsection (f) and inserting the following: ‘CIVIL MONEY PENALTIES AGAINST MULTIFAMILY MORTGAGORS, GENERAL PARTNERS OF PARTNERSHIP MORTGAGORS, AND CERTAIN MANAGING AGENTS’; and

      (8) in subsection (j), by striking ‘all civil money’ and all that follows through the period at the end and inserting the following: ‘the Secretary shall apply all civil money penalties collected under this section, or any portion of such penalties, to the fund established under section 201(j) of the Housing and Community Development Amendments of 1978.’.

    (b) APPLICABILITY OF AMENDMENTS- The amendments made by subsection (a) shall apply only with respect to--

      (1) violations that occur on or after the effective date of this Act; and

      (2) in the case of a continuing violation (as determined by the Secretary), any portion of a violation that occurs on or after such date.

SEC. 105. MODELS FOR PROPERTY DISPOSITION.

    The Federal Housing Commissioner shall develop models which shall be designed to assist States and units of general local government in using other Federal programs for the purpose of acquiring, rehabilitating, or otherwise participating in--

      (1) the disposition, pursuant to section 203 of the Housing and Community Development Amendments of 1978, of multifamily housing projects owned by the Secretary; or

      (2) the sale, pursuant to section 203 of the Housing and Community Development Amendments of 1978, of multifamily housing projects subject to mortgages held by the Secretary.

SEC. 106. PREVENTING MORTGAGE DEFAULTS.

    (a) MULTIFAMILY HOUSING PLANNING AND INVESTMENT STRATEGIES-

      (1) PREPARATION OF ASSESSMENTS FOR INDEPENDENT ENTITIES- Section 402(a) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715-1a note) is amended by adding at the end the following: ‘The assessment shall be prepared by an entity that does not have an identity of interest with the owner.’.

      (2) TIMING OF SUBMISSION OF NEEDS ASSESSMENTS- Section 402(b) of the Housing and Community Development Act of 1992 (12 U.S.C. 17152-1a note) is amended to read as follows:

    ‘(b) TIMING- To ensure that assessments for all covered multifamily housing properties will be submitted on or before the conclusion of fiscal year 1997, the Secretary shall require the owners of such properties, including covered multifamily housing properties for the elderly, to submit the assessments for the properties in accordance with the following schedule:

      ‘(1) For fiscal year 1994, 10 percent of the aggregate number of such properties.

      ‘(2) For each of fiscal years 1995, 1996, and 1997, an additional 30 percent of the aggregate number of such properties.’.

      (3) REVIEW OF COMPREHENSIVE NEEDS ASSESSMENTS- Section 404(d) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715-1a note) is amended to read as follows:

    ‘(d) REVIEW-

      ‘(1) IN GENERAL- The Secretary shall review each comprehensive needs assessment for completeness and adequacy before the expiration of the 90-day period beginning on the receipt of the assessment.

      ‘(2) INCOMPLETE OR INADEQUATE ASSESSMENTS- If the Secretary determines that the assessment is substantially incomplete or inadequate, the Secretary shall--

        ‘(A) provide the owner with a reasonable amount of time to resubmit an amended assessment; and

        ‘(B) indicate to the owner the portion of the original assessment requiring completion or other revision.’.

      (4) REPEAL OF NOTICE PROVISION- Section 404(f) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715-1a note) is hereby repealed.

      (5) FUNDING- Title IV of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-1a note) is amended by adding at the end the following new section:

‘SEC. 409. FUNDING.

    ‘(a) ALLOCATION OF ASSISTANCE- Based upon needs identified in comprehensive needs assessments, and subject to otherwise applicable program requirements, including selection criteria, the Secretary may allocate the following assistance to owners of covered multifamily housing projects and may provide such assistance on a noncompetitive basis:

      ‘(1) Operating assistance and capital improvement assistance for troubled multifamily housing projects pursuant to section 201 of the Housing and Community Development Amendments of 1978, except for assistance set aside under section 201(n)(1).

      ‘(2) Loan management assistance available pursuant to section 8 of the United States Housing Act of 1937.

    ‘(b) OPERATING ASSISTANCE AND CAPITAL IMPROVEMENT ASSISTANCE- In providing assistance under subsection (a) the Secretary shall use the selection criteria set forth in section 201(n) of the Housing and Community Development Amendments.

    ‘(c) AMOUNT OF ASSISTANCE- The Secretary may fund all or only a portion of the needs identified in the capital needs assessment of an owner selected to receive assistance under this section.’.

    (b) FLEXIBLE SUBSIDY PROGRAM-

      (1) DELETION OF UTILITY COST REQUIREMENTS- Section 201(i) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z-1a(i)) is hereby repealed.

      (2) REPEAL OF MANDATORY CONTRIBUTION FROM OWNER- Section 201(k)(2) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z-1a(k)(2)) is amended by striking ‘, except that’ and all that follows through ‘such loan’.

      (3) FUNDING- Section 201(n) of the Housing and Community Development Amendments of 1978 (42 U.S.C. 1715z-1a(n)) is amended to read as follows:

    ‘(n)(1) For fiscal year 1994 only, in providing, and contracting to provide, assistance for capital improvements under this section, the Secretary shall set aside an amount, as determined by the Secretary, for projects that are eligible for incentives under section 224(b) of the Emergency Low Income Housing Preservation Act of 1987, as such section existed before the date of enactment of the Cranston-Gonzalez National Affordable Housing Act. The Secretary may make such assistance available on a noncompetitive basis.

    ‘(2) Except as provided in paragraph (3), with respect to assistance under this section not set aside for projects under paragraph (1), the Secretary--

      ‘(A) may award assistance on a noncompetitive basis; and

      ‘(B) shall award assistance to eligible projects on the basis of--

        ‘(i) the extent to which the project is physically or financially troubled, as evidenced by the comprehensive needs assessment submitted in accordance with title IV of the Housing and Community Development Act of 1992; and

        ‘(ii) the extent to which such assistance is necessary and reasonable to prevent the default of federally insured mortgages.

    ‘(3) The Secretary may make exceptions to selection criteria set forth in paragraph (2) to permit the provision of assistance to eligible projects based upon--

      ‘(A) the extent to which such assistance is necessary to prevent the imminent foreclosure or default of a project whose owner has not submitted a comprehensive needs assessment pursuant to title IV of the Housing and Community Development Act of 1992;

      ‘(B) the extent to which the project presents an imminent threat to the life, health, and safety of project residents; or

      ‘(C) such other criteria as the Secretary may specify by regulation or by notice printed in the Federal Register.

    ‘(4) In providing assistance under this section, the Secretary shall take into consideration--

      ‘(A) the extent to which there is evidence that there will be significant opportunities for residents (including a resident council or resident management corporation, as appropriate) to be involved in the management of the project (except that this paragraph shall have no application to projects that are owned as cooperatives); and

      ‘(B) the extent to which there is evidence that the project owner has provided competent management and complied with all regulatory and administrative instructions (including such instructions with respect to the comprehensive servicing of multifamily projects as the Secretary may issue).’.

    (c) IMPLEMENTATION AND EFFECTIVE DATE FOR SUBSECTIONS (a) AND (b)-

      (1) IN GENERAL- The Secretary shall, by notice published in the Federal Register, which shall take effect upon publication, establish such requirements as may be necessary to implement the amendments made by subsections (a) and (b). The notice shall invite public comments and, not later than 12 months after the date on which the notice is published, the Secretary shall issue final regulations based on the initial notice, taking into account any public comments received.

      (2) CONTENTS- The notice and the regulations shall describe the method by which the Secretary allocates assistance in accordance with section 409 of the Housing and Community Development Act of 1992 (as added by section 106(a) of this Act) and paragraphs (2) and (3) of section 201(n) of the Housing and Community Development Amendments of 1978.

      (3) ANNUAL PUBLICATIONS- The Secretary shall publish annually in the Federal Register--

        (A) the method by which the Secretary determines which capital needs assessments will be received each year, in accordance with sections 402(b) and 404(d) of the Housing and Community Development Act of 1992; and

        (B) a list of all owners of covered multifamily housing projects, by project, that have received funding under--

          (i) section 409 of the Housing and Community Development Act of 1992 (as added by section 106(a) of this Act); or

          (ii) paragraphs (2) and (3) of section 201(n) of the Housing and Community Development Amendments of 1978.

      (4) EFFECTIVE DATE-

        (A) IN GENERAL- Except as provided in subparagraph (B), the amendments made by subsections (a) and (b) shall take effect for amounts made available for fiscal year 1995.

        (B) EXCEPTION- Notwithstanding subparagraph (A), section 201(n)(1) of the Housing and Community Development Amendments of 1978 (as added by subsection (b)(3)) shall take effect on the date of enactment of this Act.

    (d) STREAMLINED REFINANCING- As soon as practicable, the Secretary shall implement a streamlined refinancing program under the authority provided in section 223 of the National Housing Act to prevent the default of mortgages insured by the FHA which cover multifamily housing projects, as defined in section 203(b) of the Housing and Community Development Amendments of 1978.

    (e) PARTIAL PAYMENTS OF CLAIM-

      (1) IN GENERAL- Notwithstanding any other provision of law, if the Secretary is requested to accept assignment of a mortgage insured by the Secretary that covers a multifamily housing project, as such term is defined in section 203(b) of the Housing and Community Development Amendments of 1978, and the Secretary determines that partial payment would be less costly to the Federal Government than other reasonable alternatives for maintaining the low-income character of the project, the Secretary may request the mortgagee, in lieu of assignment, to--

        (A) accept partial payment of the claim under the mortgage insurance contract; and

        (B) recast the mortgage, under such terms and conditions as the Secretary may determine.

      (2) CONDITION- As a condition to a partial claim payment under this section, the mortgagor shall agree to repay to the Secretary the amount of such payment and such obligation shall be secured by a second mortgage on the property on such terms and conditions as the Secretary may determine.

    (f) GAO STUDY ON PREVENTION OF DEFAULT-

      (1) IN GENERAL- Not later than June 1, 1994, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a report that evaluates the adequacy of loan loss reserves in the General Insurance and Special Risk Insurance Funds and presents recommendations for the Secretary to prevent losses from occurring.

      (2) CONTENTS- The report submitted under paragraph (1) shall--

        (A) evaluate the factors considered in arriving at loss estimates and determine whether other factors should be considered;

        (B) determine the relative benefit of creating a new, actuarially sound insurance fund for all new multifamily housing insurance commitments; and

        (C) recommend alternatives to the Secretary’s current procedures for preventing the future default of multifamily housing project mortgages insured under title II of the National Housing Act.

    (g) GAO STUDY ON ACTUARIAL SOUNDNESS OF CERTAIN INSURANCE PROGRAMS-

      (1) IN GENERAL- Not later than June 1, 1994, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a report that evaluates, in connection with the General Insurance Fund, the role and performance of the nursing home, hospital, and retirement service center insurance programs.

      (2) CONTENTS- The reports submitted under paragraph (1) shall--

        (A) evaluate the strategic importance of these insurance programs to the mission of the FHA;

        (B) evaluate the impact of these insurance programs upon the financial performance of the General Insurance Fund;

        (C) assess the potential losses expected under these programs through fiscal year 1999;

        (D) evaluate the risk of these programs to the General Insurance Fund in connection with changes in national health care policy;

        (E) assess the ability of the FHA to manage these programs; and

        (F) make recommendations for any necessary changes.

    (h) ANNUAL ACTUARIAL REVIEW-

      (1) SPECIAL RISK INSURANCE FUND- Section 238(c) of the National Housing Act (12 U.S.C. 1715z-3(c)) is amended by adding at the end the following new paragraph:

      ‘(3) The Secretary shall undertake an annual review of the actuarial soundness of each of the insurance programs comprising the Special Risk Insurance Fund, and shall present findings from such review to the Congress in the FHA Annual Management Report.’.

      (2) GENERAL INSURANCE FUND- Section 519 of the National Housing Act (12 U.S.C. 1735c) is amended by adding at the end the following new subsection:

    ‘(g) ANNUAL ACTUARIAL REVIEW- The Secretary shall undertake an annual review of the actuarial soundness of each of the insurance programs comprising the General Insurance Fund, and shall present findings from such review to the Congress in the FHA Annual Management Report.’.

    (i) ALTERNATIVE USES FOR PREVENTION OF DEFAULT-

      (1) IN GENERAL- Subject to notice and comment from existing tenants, to prevent the imminent default of a multifamily housing project subject to a mortgage insured under title II of the National Housing Act, the Secretary may authorize the mortgagor to use the project for purposes not contemplated by or permitted under the regulatory agreement, if--

        (A) such other uses are acceptable to the Secretary;

        (B) such other uses would be otherwise insurable under title II of the National Housing Act;

        (C) the outstanding principal balance on the mortgage covering such project is not increased;

        (D) any financial benefit accruing to the mortgagor shall, subject to the discretion of the Secretary, be applied to project reserves or project rehabilitation; and

        (E) such other use serves a public purpose.

      (2) DISPLACEMENT PROTECTION- The Secretary shall--

        (A) make available tenant-based assistance under section 8 of the United States Housing Act of 1937 to any tenant displaced as a result of actions taken by the Secretary pursuant to paragraph (1); and

        (B) take such actions as the Secretary determines necessary to ensure the successful use of any tenant-based assistance provided under this paragraph.

      (3) IMPLEMENTATION- The Secretary shall, by notice published in the Federal Register, which shall take effect upon publication, establish such requirements as may be necessary to implement the amendments made by this subsection. The notice shall invite public comments and, not later than 12 months after the date on which the notice is published, the Secretary shall issue final regulations based on the initial notice, taking into account any public comments received.

    (j) MORTGAGE SALE DEMONSTRATION- The Secretary may carry out a demonstration to test the feasibility of restructuring and disposing of troubled multifamily mortgages held by the Secretary through the establishment of partnerships between public, private, and nonprofit entities.

    (k) NATIONAL INTERAGENCY TASK FORCE ON MULTIFAMILY HOUSING-

      (1) FUNCTIONS- Section 543(e)(1) of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note) is amended--

        (A) in subparagraph (D), by striking ‘and’ at the end;

        (B) in subparagraph (E), by striking the period at the end and inserting ‘; and’; and

        (C) by adding at the end the following new subparagraph:

        ‘(F) make available appropriate information to the Department of Housing and Urban Development that will assist in preventing the future default of multifamily housing project mortgages insured under title II of the National Housing Act.’.

      (2) USE OF APPROPRIATIONS AUTHORITY- Section 543(h) of the Housing and Community Development Act of 1992 is amended by inserting after the first sentence the following: ‘The Secretary may use any non-Federal or private funding or may use the authority provided for salaries and expenses in appropriations Acts for activities carried out under this section.

SEC. 107. INTEREST RATES ON ASSIGNED MORTGAGES.

    Section 7(i)(5) of the Department of Housing and Urban Development Act (42 U.S.C. 3535(i)(5)) is amended by striking the first semicolon, and all that follows through ‘as determined by the Secretary’.

SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

    (a) SPECIAL RISK INSURANCE FUND- Section 238(b) of the National Housing Act (12 U.S.C. 1715z-3(b)) is amended by striking the fifth sentence.

    (b) GENERAL INSURANCE FUND- Section 519 of the National Housing Act (12 U.S.C. 1735c) is amended--

      (1) by striking subsection (f); and

      (2) by redesignating subsection (g) (as added by section 106(h)(2) of this Act) as subsection (f).

    (c) MULTIFAMILY INSURANCE FUND APPROPRIATIONS- Title V of the National Housing Act (12 U.S.C. 1731a et seq.) is amended by adding at the end the following new section:

‘SEC. 541. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL AND SPECIAL RISK INSURANCE FUNDS.

    ‘There are authorized to be appropriated $350,000,000 for fiscal year 1994 and $360,500,000 for fiscal year 1995, to be allocated in any manner that the Secretary determines appropriate, for the following costs incurred in conjunction with programs authorized under the General Insurance Fund, as provided by section 519, and the Special Risk Insurance Fund, as provided by section 238:

      ‘(1) The cost to the Government, as defined in section 502 of the Congressional Budget Act, of new insurance commitments.

      ‘(2) The cost to the Government, as defined in section 502 of the Congressional Budget Act, of modifications to existing loans, loan guarantees, or insurance commitments.

      ‘(3) The cost to the Government, as defined in section 502 of the Congressional Budget Act, of loans provided under section 203(f) of the Housing and Community Development Amendments of 1978.

      ‘(4) The costs of the rehabilitation of multifamily housing projects (as defined in section 203(b) of the Housing and Community Development Amendments of 1978) upon disposition by the Secretary.’.

TITLE II--ENHANCED PROGRAM FLEXIBILITY

Subtitle A--Office of Public and Indian Housing

SEC. 201. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.

    (a) IN GENERAL- Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v) is amended--

      (1) by amending subsection (b) to read as follows:

    ‘(b) [RESERVED].’;

      (2) in subsection (c)(2), by striking ‘$200,000’ and inserting ‘$500,000’;

      (3) in subsection (c)(3)--

        (A) by redesignating subparagraphs (E) through (I) as subparagraphs (F) through (J), respectively;

        (B) by inserting after subparagraph (D) the following new subparagraph:

        ‘(E) planning for community service and support service activities to be carried out by the public housing agency, residents, members of the community, and other persons and organizations willing to contribute to the social, economic, or physical improvement of the community (community service is a required element of the revitalization program);’; and

        (C) in subparagraph (H), as redesignated, by striking ‘designing a suitable replacement housing plan,’ and inserting ‘designing suitable relocation and replacement housing plans,’;

      (4) in subsection (c)(4)--

        (A) by redesignating subparagraphs (D) and (E) as subparagraphs (E) and (F), respectively; and

        (B) by inserting after subparagraph (C) the following new subparagraph:

        ‘(D) a description of the community service and support service planning activities to be carried out by the public housing agency, residents, members of the community, and other persons and organizations willing to contribute to the social, economic, or physical improvement of the community;’;

      (5) in subsection (c)(5)--

        (A) by striking subparagraph (E) and redesignating subparagraphs (F) and (G) as subparagraphs (E) and (F), accordingly;

        (B) in subparagraph (E), as redesignated, by inserting before the semicolon ‘, taking into account the condition of the stock of the public housing agency as a whole’; and

        (C) by adding at the end the following:

      ‘In making grants under this subsection, the Secretary may select a lower-rated, approvable application over a higher-rated application to increase the national geographic diversity among applications approved under this section.’;

      (6) in subsection (d)(2)--

        (A) by redesignating subparagraphs (E) through (I) as subparagraphs (G) through (K), respectively;

        (B) by inserting after subparagraph (D) the following new subparagraphs:

        ‘(E) community service activities to be carried out by residents, members of the community, and other persons willing to contribute to the social, economic, or physical improvement of the community (community service is a required element of the revitalization program);

        ‘(F) replacement of public housing units;’; and

        (C) in subparagraph (K), as redesignated--

          (i) by striking ‘15 percent’ and inserting ‘20 percent’; and

          (ii) by inserting before the period at the end the following: ‘, except that an amount equal to 15 percent of the amount of any grant under this subsection used for support services shall be contributed from non-Federal sources (which contribution shall be in the form of cash, administrative costs, and the reasonable value of in-kind contributions and may include funding under title I of the Housing and Community Development Act of 1974)’;

      (7) in subsection (d)(3)--

        (A) by redesignating subparagraphs (D) and (E) as subparagraphs (E) and (F), respectively; and

        (B) by inserting after subparagraph (C) the following new subparagraph:

        ‘(D) a description of the community service and support service activities to be carried out by the public housing agency, residents, members of the community, and other persons and organizations willing to contribute to the social, economic, or physical improvement of the community;’;

      (8) in subsection (d)(4)--

        (A) in subparagraph (D), by inserting ‘(with assistance from the Department of Housing and Urban Development if necessary)’ after ‘applicant’;

        (B) by striking subparagraph (E) and redesignating subparagraphs (F) and (G) as subparagraphs (E) and (F), respectively;

        (C) in subparagraph (E), as redesignated, by inserting before the semicolon ‘, taking into account the condition of the applicant’s stock as a whole’; and

        (D) by adding at the end the following:

      ‘In making grants under this subsection, the Secretary may select a lower-rated, approvable application over a higher-rated application to increase the national geographic diversity among applications approved under this section.’;

      (9) in subsection (e), by adding at the end the following new paragraph:

      ‘(3) DEMOLITION AND REPLACEMENT-

        ‘(A) IN GENERAL- Notwithstanding any other applicable law or regulation, a revitalization plan under this section may include demolition and replacement on site or in the same neighborhood if the number of replacement units provided in the same neighborhood is fewer than the number of units demolished as a result of the revitalization effort.

        ‘(B) TENANT-BASED ASSISTANCE- Notwithstanding the limitations contained in subparagraph (A)(v) or (C) of section 18(b)(3), a public housing agency may replace not more than one-third of the units demolished or disposed of through a revitalization project under this section with tenant-based assistance under section 8.’;

      (10) in subsection (h)--

        (A) by amending paragraph (5) to read as follows:

      ‘(5) SEVERELY DISTRESSED PUBLIC HOUSING- The term ‘severely distressed public housing’ means a public housing project or a building in a project--

        ‘(A) that requires major redesign, reconstruction, redevelopment, or partial or total demolition to correct serious deficiencies in the original design (including inappropriately high population density), deferred maintenance, physical deterioration or obsolescence of major systems, and other deficiencies in the physical plant of the project; and

        ‘(B) that either--

          ‘(i)(I) is occupied predominantly by families with children that have extremely low incomes, high rates of unemployment, and extensive dependency on various forms of public assistance; and

          ‘(II) has high rates of vandalism and criminal activity (including drug-related criminal activity); or

          ‘(ii) that has a vacancy rate, as determined by the Secretary, of 50 percent or more;

        ‘(C) that cannot be revitalized through assistance under other programs, such as the programs under sections 9 and 14, or through other administrative means because of the inadequacy of available funds; and

        ‘(D) that, in the case of individual buildings, the building is, in the Secretary’s determination, sufficiently separable from the remainder of the project to make use of the building feasible for purposes of this section.’; and

        (B) by adding at the end the following new paragraphs:

      ‘(6) COMMUNITY SERVICE- The term ‘community service’ means services provided on a volunteer or limited stipend basis for the social, economic, or physical improvement of the community to be served.

      ‘(7) SUPPORT SERVICES- The term ‘support services’ includes all activities designed to lead toward upward mobility, self-sufficiency, and improved quality of life for the residents of the project, such as literacy training, job training, day care, and economic development. Such activities may allow for the participation of residents of the neighborhood.’; and

      (11) in subsection (i)--

        (A) by striking paragraph (2); and

        (B) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

    (b) CONFORMING AMENDMENT- The first sentence of section 25(m)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437w(m)(1)) is amended to read as follows:

      ‘(1) The term ‘eligible housing’ means a public housing project, or one or more buildings within a project, that is owned or operated by a public housing agency that has been troubled for not less than 3 years and that, as determined by the Secretary, has failed to make substantial progress toward effective management.’.

    (c) USE OF TENANT-BASED ASSISTANCE FOR REPLACEMENT HOUSING- Section 18(b)(3)(C)(i) of the United States Housing Act of 1937 (42 U.S.C. 1437p(b)(3)(C)(i)) is amended by striking ‘15-year’.

    (d) REPLACEMENT HOUSING OUTSIDE THE JURISDICTION OF THE PHA- Section 18(b)(3) of the United States Housing Act of 1937 (42 U.S.C. 1437p(b)(3)), as amended by subsection (c), is amended--

      (1) by redesignating subparagraphs (D) through (H) as subparagraphs (E) through (I), respectively; and

      (2) by inserting after subparagraph (C) the following new subparagraph:

      ‘(D) may provide that all or part of such additional dwelling units may be located outside of the jurisdiction of the public housing agency (the ‘original agency’) if--

        ‘(i) the location is in the same housing market area as the original agency, as determined by the Secretary;

        ‘(ii) the plan contains an agreement between the original agency and the public housing agency in the alternate location or other public or private entity that will be responsible for providing the additional units in the alternate location (‘alternate agency or entity’) that the alternate agency or entity will, with respect to the dwelling units involved--

          ‘(I) provide the dwelling units in accordance with subparagraph (A);

          ‘(II) complete the plan on schedule in accordance with subparagraph (F);

          ‘(III) meet the requirements of subparagraph (G) and the maximum rent provisions of subparagraph (H); and

          ‘(IV) not impose a local residency preference on any resident of the jurisdiction of the original agency for purposes of admission to any such units; and

        ‘(iii) the arrangement is approved by the unit of general local government for the jurisdiction in which the additional units will be located;’.

SEC. 202. DISALLOWANCE OF EARNED INCOME FOR RESIDENTS WHO OBTAIN EMPLOYMENT.

    (a) IN GENERAL- Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) is amended--

      (1) by striking the undesignated paragraph at the end of subsection (c)(3) (as added by section 515(b) of the Cranston-Gonzalez National Affordable Housing Act); and

      (2) by adding at the end the following new subsection:

    ‘(d) DISALLOWANCE OF EARNED INCOME FROM PUBLIC HOUSING RENT DETERMINATIONS- Notwithstanding any other provision of law, the rent payable under subsection (a) for any public housing unit by a family whose income increases as a result of employment of a member of the family who was previously unemployed for one or more years (including a family whose income increases as a result of the participation of a family member in the Family Self-Sufficiency program or other job training program) shall not be increased for a period of 18 months, beginning with the commencement of employment as a result of the increased income due to such employment. After the expiration of the 18-month period, rent increases due to the continued employment of such family member shall be limited to 10 percent per year. In no case shall rent exceed the amount determined under subsection (a).’.

    (b) APPLICABILITY OF AMENDMENT- Notwithstanding the amendment made by subsection (a), any resident of public housing participating in the program under the authority contained in the undesignated paragraph at the end of section 3(c)(3) of the United States Housing Act of 1937 as such paragraph existed before the date of enactment of this subsection shall continue to be governed by such authority.

SEC. 203. CEILING RENTS BASED ON REASONABLE RENTAL VALUE.

    (a) AMENDMENT- Section 3(a)(2)(A)(iii) of the United States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)(A)(iii)) is amended to read as follows:

      ‘(iii) is not less than the reasonable rental value of the unit, as determined by the Secretary.’.

    (b) REGULATIONS-

      (1) IN GENERAL- The Secretary shall, by regulation, after notice and an opportunity for public comment, establish such requirements as may be necessary to carry out the provisions of section 3(a)(2)(A) of the United States Housing Act of 1937, as amended by subsection (a).

      (2) APPLICABILITY- Except in the case of an Indian housing authority, the regulations issued pursuant to paragraph (1) shall not apply to scattered site public housing units.

      (3) TRANSITION RULE- Prior to the issuance of final regulations under paragraph (1), a public housing agency may implement ceiling rents which shall be--

        (A) determined in accordance with section 3(a)(2)(A) of the United States Housing Act of 1937, as such section existed before the date of enactment of this Act; or

        (B) equal to the 95th percentile of the rent paid for a unit of comparable size by tenants in the same project or a group of comparable projects totaling 50 units or more.

SEC. 204. RESIDENT MANAGEMENT PROGRAM.

    Section 20(f) of the United States Housing Act of 1937 (42 U.S.C. 1437r(f)) is amended--

      (1) in paragraph (2), by striking ‘$100,000’ and inserting ‘$250,000’; and

      (2) in paragraph (3), by adding at the end the following: ‘The Secretary may use not more than 10 percent of the amounts made available under this subsection for program monitoring and evaluation, technical assistance, and information dissemination.’.

Subtitle B--Office of Community Planning and Development

SEC. 211. ECONOMIC DEVELOPMENT INITIATIVE.

    (a) SECTION 108 ELIGIBLE ACTIVITIES-

      (1) IN GENERAL- Section 108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(a)) is amended--

        (A) in the first sentence--

          (i) by striking ‘or’ after ‘section 105(a);’; and

          (ii) by inserting before the period the following: ‘; (5) the acquisition, construction, reconstruction, or installation of public facilities (except for buildings for the general conduct of government); or (6) in the case of colonias, public works and site or other improvements’; and

        (B) by striking the second sentence and inserting the following: ‘A guarantee under this section (including a guarantee combined with a grant under subsection (q)) may be used to assist a grantee in obtaining financing only if the grantee has made efforts to obtain the financing without the use of the guarantee (and, if applicable, the grant) and cannot complete the financing consistent with the timely execution of the proposed activities and projects without the guarantee (or, if applicable, the grant).’.

      (2) DEFINITION- Section 102(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)) is amended by adding at the end the following new paragraph:

      ‘(24) The term ‘colonia’ means any identifiable community that--

        ‘(A) is in the State of Arizona, California, New Mexico, or Texas;

        ‘(B) is in the United States-Mexico border region;

        ‘(C) is determined to be a colonia on the basis of objective criteria, including lack of potable water supply, lack of adequate sewage systems, and lack of decent, safe, and sanitary housing; and

        ‘(D) was in existence as a colonia before the date of the enactment of the Cranston-Gonzalez National Affordable Housing Act.’.

    (b) ECONOMIC DEVELOPMENT GRANTS-

      (1) IN GENERAL- Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) is amended by adding at the end the following new subsection:

    ‘(q) ECONOMIC DEVELOPMENT GRANTS-

      ‘(1) AUTHORIZATION- The Secretary may make grants in connection with notes or other obligations guaranteed under this section to eligible public entities for the purpose of enhancing the security of loans guaranteed under this section or improving the viability of projects financed with loans guaranteed under this section.

      ‘(2) ELIGIBLE ACTIVITIES- Assistance under this subsection may be used for the purposes of and in conjunction with projects and activities assisted under subsection (a).

      ‘(3) APPLICATIONS- Applications for assistance under this subsection shall be submitted by eligible public entities in the form and in accordance with the procedures established by the Secretary. Eligible public entities may apply for grants only in conjunction with a request for guarantee under subsection (a).

      ‘(4) SELECTION CRITERIA- The Secretary shall establish criteria for awarding assistance under this subsection. Such criteria shall include--

        ‘(A) the extent of need for such assistance;

        ‘(B) the level of distress in the community to be served and in the jurisdiction applying for assistance;

        ‘(C) the quality of the plan proposed and the capacity or potential capacity of the applicant to successfully carry out the plan; and

        ‘(D) such other factors as the Secretary determines to be appropriate.’.

      (2) CONFORMING AMENDMENT- Title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) is amended--

        (A) in section 101(c) in the second sentence, by inserting ‘or a grant’ after ‘guarantee’; and

        (B) in section 104(b)(3), by inserting ‘or a grant’ after ‘guarantee’.

    (c) USE OF UDAG RECAPTURES- Section 119(o) of the Housing and Community Development Act of 1974 (42 U.S.C. 5318(o)) is amended by inserting before the period the following: ‘, except that amounts available to the Secretary for use under this subsection as of October 1, 1993, and amounts released to the Secretary pursuant to subsection (t) may be used to provide grants under section 108(q).’.

    (d) UDAG AMNESTY PROGRAM-

      (1) AMENDMENT- Section 119 of the Housing and Community Development Act of 1974 (42 U.S.C. 5318) is amended by adding at the end the following new subsection:

    ‘(t) UDAG AMNESTY PROGRAM- If a grant or a portion of a grant under this section remains unexpended as of the issuance of a notice implementing this subsection, the grantee may enter into an agreement, as provided under this subsection, with the Secretary to receive a percentage of the grant amount and relinquish all claims to the balance of the grant within 90 days of the issuance of notice implementing this subsection (or such later date as the Secretary may approve). The Secretary shall not recapture any funds obligated pursuant to this section during a period beginning on the date of enactment of the Housing and Community Development Act of 1993 until 90 days after the issuance of a notice implementing this subsection. A grantee may receive as a grant under this subsection--

      ‘(1) 33 percent of such unexpended amounts if--

        ‘(A) the grantee agrees to expend not less than one-half of the amount received for activities authorized pursuant to section 108(q) and to expend such funds in conjunction with a loan guarantee made under section 108 at least equal to twice the amount of the funds received; and

        ‘(B)(i) the remainder of the amount received is used for economic development activities eligible under title I of this Act; and

        ‘(ii) except when waived by the Secretary in the case of a severely distressed jurisdiction, not more than one-half of the costs of activities under subparagraph (B) are derived from such unexpended amounts; or

      ‘(2) 25 percent of such unexpended amounts if--

        ‘(A) the grantee agrees to expend such funds for economic development activities eligible under title I of this Act; and

        ‘(B) except when waived by the Secretary in the case of a severely distressed jurisdiction, not more than one-half of the costs of such activities are derived from such unexpended amount.’.

      (2) IMPLEMENTATION- Notwithstanding subsection (f), not later than 10 days after the date of enactment of this Act, the Secretary shall, by notice published in the Federal Register, which shall take effect upon publication, establish such requirements as may be necessary to implement the amendments made by this subsection.

    (e) GUARANTEE OF OBLIGATIONS BACKED BY SECTION 108 LOANS- Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308), as amended by subsection (b), is amended by adding at the end the following new subsection:

    ‘(r) GUARANTEE OF OBLIGATIONS BACKED BY SECTION 108 LOANS-

      ‘(1) AUTHORIZATION- The Secretary may, upon such terms and conditions as the Secretary deems appropriate, guarantee the timely payment of the principal of and interest on trust certificates or other obligations that--

        ‘(A) are offered by the Secretary, or by any other offeror approved for purposes of this subsection by the Secretary; and

        ‘(B) are based on and backed by a trust or pool composed of notes or other obligations guaranteed by the Secretary under this section.

      ‘(2) FULL FAITH AND CREDIT OF THE UNITED STATES- Subsection (f) shall apply to any guarantee under this subsection.

      ‘(3) SUBROGATION- If the Secretary pays a claim under a guarantee issued under this section, the Secretary shall be subrogated fully to the rights satisfied by such payment.

      ‘(4) POWERS OF THE SECRETARY- No Federal, State, or local law shall preclude or limit the exercise by the Secretary of--

        ‘(A) the power to contract with respect to public offerings and other sales of notes, trust certificates, and other obligations guaranteed under this section upon such terms and conditions as the Secretary deems appropriate;

        ‘(B) the right to enforce by any means deemed appropriate by the Secretary any such contract; and

        ‘(C) the Secretary’s ownership rights, as applicable, in notes, certificates, or other obligations guaranteed under this section, or constituting the trust or pool against which trust certificates or other obligations guaranteed under this section are offered.’.

    (f) EFFECTIVE DATE- The Secretary shall, by notice published in the Federal Register, which shall take effect upon publication, establish such requirements as may be necessary to implement the amendments made by this section. The notice shall invite public comments and, not later than 12 months after the date on which the notice is published, the Secretary shall issue final regulations based on the initial notice, taking into account any public comments received.

SEC. 212. HOME INVESTMENT PARTNERSHIPS.

    (a) PARTICIPATION BY STATE AGENCIES OR INSTRUMENTALITIES- Section 104(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704(2)) is amended by inserting before the period at the end the following: ‘, or any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive to act on behalf of the State with regard to the provisions of this Act’.

    (b) SIMPLIFY PROGRAM-WIDE INCOME TARGETING FOR HOME RENTAL HOUSING- Section 214(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12744(1)) is amended by striking ‘such funds are invested with respect to dwelling units that are occupied by’ each place such term appears and inserting ‘(i) the families receiving such rental assistance are, or (ii) the dwelling units assisted with such funds are occupied by’ in each such place.

    (c) REMOVE FIRST-TIME HOMEBUYER LIMITATION FOR HOME UNITS- Section 215(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(b)) is amended by striking paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.

    (d) SIMPLIFY RESALE PROVISIONS- Section 215(b)(3)(B) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(b)(4)(B)), as redesignated by subsection (c), is amended by striking ‘subsection’ and inserting ‘title’.

    (e) STABILIZATION OF HOME FUNDING THRESHOLDS- The Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--

      (1) in section 216, by striking paragraph (10);

      (2) in section 217(b), by striking paragraph (4);

      (3) in section 217(b)(3)--

        (A) in the first sentence, by striking ‘only those jurisdictions’ and all that follows through ‘allocation’ and inserting ‘jurisdictions that are not participating jurisdictions that are allocated an amount of $500,000 or more and jurisdictions that are participating jurisdictions shall receive an allocation’; and

        (B) in the last sentence, by striking ‘, except as provided in paragraph (4)’; and

      (4) in section 216--

        (A) in paragraph (3)(A), by striking ‘Except as provided in paragraph (10), a jurisdiction’ and inserting ‘A jurisdiction’; and

        (B) in paragraph (9)(B), by striking ‘, except as provided in paragraph (10)’.

    (f) COMPREHENSIVE AFFORDABLE HOUSING STRATEGY-

      (1) HOME PROGRAM- Section 218(d) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748(d)) is amended in the first sentence, by inserting ‘that it is following a current housing affordability strategy that has been approved by the Secretary in accordance with section 105, and’ after ‘certification’.

      (2) HOMELESS ASSISTANCE PROGRAMS- Section 401 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11361) is amended to read as follows:

‘SEC. 401. HOUSING AFFORDABILITY STRATEGY.

    ‘(a) REQUIREMENT TO FOLLOW A CHAS- Assistance may be made available under subtitle B to metropolitan cities, urban counties, and States receiving a formula amount under section 413, only if the jurisdiction certifies that it is following a current housing affordability strategy that has been approved by the Secretary in accordance with section 105 of the Cranston-Gonzalez National Affordable Housing Act.

    ‘(b) REQUIREMENT FOR CONSISTENCY WITH CHAS- Assistance may be made available under this title only if the application contains a certification that the proposed project or activities are consistent with the housing affordability strategy of the State or unit of general local government in which the project is located. The certification shall be from the public official responsible for submitting the strategy for the jurisdiction.’.

      (3) CONFORMING CHANGES- Title IV of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11361 et seq.) is amended by striking sections 426(a)(2)(F), 434(a)(10), and 454(b)(9).

    (g) HOME MATCHING REQUIREMENTS- Section 220(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12750(a)) is amended to read as follows:

    ‘(a) CONTRIBUTION- Each participating jurisdiction shall make contributions to housing that qualifies as affordable housing under this title that total, throughout a fiscal year, not less than 25 percent of the funds drawn from the jurisdiction’s HOME Investment Trust Fund in that fiscal year. Such contribution shall be in addition to any amounts made available under section 216(3)(A)(ii).’.

    (h) SEPARATE AUDIT REQUIREMENT FOR THE HOME PROGRAM- Section 283 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12833) is amended--

      (1) by striking the section heading and inserting the following:

‘SEC. 283. AUDITS BY THE COMPTROLLER GENERAL.’;

      (2) by striking subsection (a);

      (3) in subsection (b)--

        (A) by striking ‘(b) AUDITS BY THE COMPTROLLER GENERAL- ’; and

        (B) by redesignating paragraphs (1) and (2) as subsections (a) and (b), respectively; and

      (4) in subsection (a), as redesignated by paragraph (3), by striking the second sentence.

    (i) HOME ENVIRONMENTAL REVIEW AMENDMENTS- Section 288 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12838) is amended--

      (1) in subsection (a)--

        (A) in the first sentence, by striking ‘participating jurisdictions’ and inserting ‘jurisdictions, Indian tribes, or insular areas’; and

        (B) by adding at the end the following: ‘The regulations shall--

      ‘(1) provide for the monitoring of environmental reviews performed under this section;

      ‘(2) at the discretion of the Secretary, facilitate training for the performance of such reviews; and

      ‘(3) establish criteria for the suspension or termination of the assumption under this section.

    The Secretary’s duty under this subsection shall not be construed to limit any responsibility assumed by a State or unit of general local government with respect to any particular release of funds.’;

      (2) in subsection (b) in the first sentence, by striking ‘participating jurisdiction’ and inserting ‘jurisdiction, Indian tribe, or insular area’;

      (3) in subsection (c)(4), by striking ‘participating jurisdiction’ and inserting ‘jurisdiction, Indian tribe, or insular area’; and

      (4) in subsection (d), by striking ‘ASSISTANCE TO A STATE- In the case of assistance to States’ and inserting the following: ‘ASSISTANCE TO UNITS OF GENERAL LOCAL GOVERNMENT FROM A STATE- In the case of assistance to units of general local government from a State’.

    (j) USE OF CDBG FUNDS FOR HOME ADMINISTRATIVE EXPENSES- Section 105(a)(13) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)(13)) is amended by inserting after ‘charges related to’ the following: ‘(A) administering the HOME program under title II of the Cranston-Gonzalez National Affordable Housing Act; and (B)’.

    (k) PROJECT DELIVERY COSTS- Section 105(a)(21) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)(21)) is amended--

      (1) by inserting ‘in connection with tenant-based assistance and affordable housing projects assisted under title II of the Cranston-Gonzalez National Affordable Housing Act’ after ‘housing counseling’; and

      (2) by striking ‘authorized’ and all that follows through ‘any law’ and inserting ‘assisted under title II of the Cranston-Gonzalez National Affordable Housing Act’.

SEC. 213. HOPE MATCH REQUIREMENT.

    Section 443(c)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12893(c)(1)) is amended by striking ‘33’ and inserting ‘25’.

SEC. 214. FLEXIBILITY OF CDBG PROGRAM FOR DISASTER AREAS.

    Title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) is amended by adding at the end the following new section:

‘SEC. 122. SUSPENSION OF REQUIREMENTS FOR DISASTER AREAS.

    ‘For the duration of time during which an area has been declared a disaster area by the President under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the Secretary may suspend all requirements for purposes of assistance under section 106 for that area, except for those related to public notice of funding availability, nondiscrimination, fair housing, labor standards, environmental standards, and requirements that activities benefit persons of low- and moderate-income.’.

SEC. 215. FLEXIBILITY OF HOME PROGRAM FOR DISASTER AREAS.

    Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended by adding at the end the following new section:

‘SEC. 290. SUSPENSION OF REQUIREMENTS FOR DISASTER AREAS.

    ‘For the duration of time during which an area has been declared a disaster area by the President under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the Secretary may suspend all requirements for purposes of assistance under this title for that area, except for those related to public notice of funding availability, nondiscrimination, fair housing, labor standards, environmental standards, and low-income housing affordability.’.

Subtitle C--Community Partnerships Against Crime

SEC. 221. COMPAC PROGRAM.

    (a) CONFORMING PROVISIONS- Section 5001 of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901) is amended in the table of contents--

      (1) by striking the item relating to the heading for chapter 2 and inserting the following:

‘Chapter 2--Community Partnerships Against Crime’;

      (2) by striking the item relating to section 5122 and inserting the following:

      ‘Sec. 5122. Purposes.’;

      and

      (3) by adding the following after the item relating to section 5130:

      ‘Sec. 5131. Technical assistance.’.

    (b) SHORT TITLE, PURPOSES, AND AUTHORITY TO MAKE GRANTS- The Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11901 et seq.) is amended by striking the chapter heading for chapter 2, and by striking sections 5121, 5122, and 5123 and inserting the following:

‘CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

‘SEC. 5121. SHORT TITLE.

    ‘This chapter may be cited as the ‘Community Partnerships Against Crime Act of 1993’.

‘SEC. 5122. PURPOSES.

    ‘The purposes of this chapter are to--

      ‘(1) improve the quality of life for law-abiding public housing residents by reducing the levels of fear, violence, and crime in their communities;

      ‘(2) expand and enhance the Federal Government’s commitment to eliminating crime in public housing;

      ‘(3) broaden the scope of the Public and Assisted Housing Drug Elimination Act of 1990 to apply to all types of crime, and not simply crime that is drug-related;

      ‘(4) target opportunities for long-term commitments of funding primarily to public housing agencies with serious crime problems;

      ‘(5) encourage the involvement of a broad range of community-based groups, and residents of neighboring housing that is owned or assisted by the Secretary, in the development and implementation of anti-crime plans;

      ‘(6) reduce crime and disorder in and around public housing through the expansion of community-oriented policing activities and problem solving;

      ‘(7) provide training, information services, and other technical assistance to program participants; and

      ‘(8) establish a standardized assessment system to evaluate need among public housing agencies, and to measure progress in reaching crime reduction goals.

‘SEC. 5123. AUTHORITY TO MAKE GRANTS.

    ‘The Secretary of Housing and Urban Development, in accordance with the provisions of this chapter, may make grants, for use in eliminating crime in and around public and other federally assisted low-income housing projects (1) to public housing agencies (including Indian housing authorities), and (2) to private, for profit, and nonprofit owners of federally assisted low-income housing. In designing the program, the Secretary shall consult with the Attorney General.’.

    (c) ELIGIBLE ACTIVITIES- Section 5124(a) of the Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11903(a)) is amended--

      (1) in the introductory material preceding paragraph (1), by inserting ‘and around’ after ‘used in’;

      (2) in paragraph (3), by inserting ‘, such as fencing, lighting, locking, and surveillance systems’ before the semicolon;

      (3) in paragraph (4), by striking subparagraph (A) and inserting the following new subparagraph:

        ‘(A) to investigate crime; and’;

      (4) in paragraph (6)--

        (A) by striking ‘in and around public or other federally assisted low-income housing projects’; and

        (B) by striking ‘and’ after the semicolon;

      (5) in paragraph (7)--

        (A) by striking ‘where a public housing agency receives a grant,’;

        (B) by striking ‘drug abuse’ and inserting ‘crime’; and

        (C) by striking the period at the end and inserting a semicolon; and

      (6) by adding at the end the following new paragraphs:

      ‘(8) the employment or utilization of one or more individuals, including law enforcement officers, made available by contract or other cooperative arrangement with State or local law enforcement agencies, to engage in community policing involving interaction with members of the community on proactive crime control and prevention;

      ‘(9) youth initiatives, such as activities involving training, education, after school programs, cultural programs, recreation and sports, career planning, and entrepreneurship and employment; and

      ‘(10) resident service programs, such as job training, education programs, drug and alcohol treatment, and other appropriate social services that address the contributing factors of crime.’.

    (d) APPLICATIONS- Section 5125 of the Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11904) is amended--

      (1) in subsection (a)--

        (A) by striking ‘To receive a grant’ and inserting the following:

      ‘(1) APPLICATIONS- To receive a grant’;

        (B) in the second sentence, by striking ‘drug-related crime on the premises of’ and inserting the following: ‘crime in and around’; and

        (C) by adding at the end the following new paragraphs:

      ‘(2) ONE-YEAR RENEWABLE GRANTS-

        ‘(A) IN GENERAL- Eligible applicants may submit an application 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 years, if the Secretary finds, after an annual or more frequent performance review, that the public housing 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.

        ‘(B) PREFERENCE- The Secretary shall accord a preference to applicants for grants under this paragraph if the grant is to be used to continue or expand activities eligible for assistance under this chapter that have received previous assistance either under this chapter, as it existed prior to the enactment of the Housing and Community Development Act of 1993, or under section 14 of the United States Housing Act of 1937. Such preference shall not unreasonably prejudice the opportunity for other public housing agencies to receive grants under this chapter.

      ‘(3) PUBLIC HOUSING AGENCIES THAT HAVE ESPECIALLY SEVERE CRIME PROBLEMS- The Secretary shall, by regulation issued after notice and opportunity for public comment, set forth criteria for establishing a class of public housing agencies that have especially severe crime problems. The Secretary may allocate a portion of the annual appropriation for this program for public housing agencies in this class.’.

      (2) in subsection (b)--

        (A) by striking the introductory material preceding paragraph (1) and inserting the following: ‘The Secretary shall approve applications under subsection (a)(2) that are not subject to a preference under subsection (a)(2)(B) on the basis of--’;

        (B) in paragraph (1), by striking ‘drug-related crime problem in’ and inserting the following: ‘crime problem in and around’;

        (C) in paragraph (2), by inserting immediately after ‘crime problem in’ the following: ‘and around’; and

        (D) in paragraph (4), by inserting after ‘local government’ the following: ‘, local community-based nonprofit organizations, local resident organizations that represent the residents of neighboring projects that are owned or assisted by the Secretary,’;

      (3) in subsection (c)(2), by striking ‘drug-related’ each place it appears; and

      (4) by striking subsection (d).

    (e) DEFINITIONS- Section 5126 of the Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11905) is amended by striking paragraphs (1) and (2), and redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively.

    (f) IMPLEMENTATION- Section 5127 of the Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11906) is amended by striking ‘Cranston-Gonzalez National Affordable Housing Act’ and inserting ‘Housing and Community Development Act of 1993’.

    (g) REPORTS- Section 5128 of the Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11907) is amended--

      (1) by striking ‘The Secretary’ and inserting the following:

    ‘(a) GRANTEE REPORTS- The Secretary’;

      (2) by striking ‘drug-related crime in’ and inserting ‘crime in and around’; and

      (3) by adding at the end the following new subsection:

    ‘(b) HUD REPORTS- The Secretary shall submit a report to the Congress describing the system used to distribute funds to grantees under this section. Such report shall include, at a minimum--

      ‘(1) a description of the criteria used to establish the class of public housing agencies with especially severe crime problems and a list of such agencies;

      ‘(2) the methodology used to distribute funds among the public housing agencies on the list created under paragraph (1); and

      ‘(3) the Secretary’s recommendations for any change to the method of distribution of funds.’.

    (h) AUTHORIZATION OF APPROPRIATIONS- Section 5130 of the Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11909) is amended--

      (1) in the first sentence of subsection (a), by striking ‘$175,000,000 for fiscal year 1993’ and all that follows through the end of the sentence and inserting ‘$265,000,000 for fiscal year 1994 and $325,000,000 for fiscal year 1995.’; and

      (2) in subsection (b)--

        (A) in the heading, by striking ‘SET-ASIDES’ and inserting ‘SET-ASIDE’; and

        (B) by striking the second sentence.

    (i) REPEAL- Section 520(k) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 11908) is hereby repealed.

    (j) TECHNICAL ASSISTANCE- The Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11901 et seq.) is further amended by adding at the end the following new section:

‘SEC. 5131. TECHNICAL ASSISTANCE.

    ‘Of the amounts appropriated annually for each of fiscal years 1994 and 1995 to carry out this chapter, the Secretary shall use not more than $10,000,000, directly or indirectly, under grants, contracts, or cooperative agreements, to provide training, information services, and other technical assistance to public housing agencies and other entities with respect to their participation in the program authorized by this chapter. Such technical assistance may include the establishment and operation of the clearinghouse on drug abuse in public housing and the regional training program on drug abuse in public housing under sections 5143 and 5144 of this Act. The Secretary is also authorized to use the foregoing amounts for obtaining assistance in establishing and managing assessment and evaluation criteria and specifications, and obtaining the opinions of experts in relevant fields.’.

TITLE III--TECHNICAL AND OTHER AMENDMENTS

Subtitle A--Public and Assisted Housing

SEC. 301. CORRECTION TO DEFINITION OF FAMILY.

    The first sentence of section 3(b)(3)(B) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(3)(B)) is amended--

      (1) by striking ‘means’ and inserting ‘includes’; and

      (2) by inserting ‘and’ immediately after ‘children,’.

SEC. 302. IDENTIFICATION OF CIAP REPLACEMENT NEEDS.

    Section 14 of the United States Housing Act of 1937 (42 U.S.C. 1437l) is amended--

      (1) in subsection (d)--

        (A) by striking paragraph (2); and

        (B) in paragraph (4)--

          (i) by striking ‘and replacements,’; and

          (ii) by striking ‘(1), (2), and (3)’ and inserting ‘(1) and (3)’; and

      (2) in subsection (f)(1)--

        (A) by striking subparagraph (B); and

        (B) in subparagraph (D), by striking ‘(1), (2), and (3)’ and inserting ‘(1) and (3)’.

SEC. 303. APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO INDIAN HOUSING.

    (a) AMENDMENT- Section 201(b) of the United States Housing Act of 1937 (42 U.S.C. 1437aa(b)) is amended to read as follows:

    ‘(b) APPLICABILITY OF TITLE I- Except as otherwise provided by law, the provisions of title I shall apply to low-income housing developed or operated pursuant to a contract between the Secretary and an Indian housing authority.’.

    (b) APPLICABILITY OF AMENDMENT- The amendment made by subsection (a) shall not affect provisions of the United States Housing Act of 1937 that were made applicable to public housing developed or operated pursuant to a contract between the Secretary and an Indian housing authority in accordance with section 201(b)(2) of such Act, as such section existed before the effective date of this section.

    (c) APPLICABILITY OF HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992- Sections 103(a)(1), 112, 114, 116, 118, 903, and 927 of the Housing and Community Development Act of 1992 shall apply to public housing developed or operated pursuant to a contract between the Secretary and an Indian housing authority.

SEC. 304. PROJECT-BASED ACCOUNTING.

    Section 6(c)(4)(E) of the United States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(E)) is amended by striking ‘250’ and inserting ‘500’.

SEC. 305. OPERATING SUBSIDY ADJUSTMENTS FOR ANTICIPATED FRAUD RECOVERIES.

    Section 9(a) of the United States Housing Act of 1937 (42 U.S.C. 1437g(a)) is amended by adding at the end the following new paragraph:

    ‘(4) Adjustments to a public housing agency’s operating subsidy made by the Secretary under this section shall reflect actual changes in rental income collections resulting from the application of section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988.’.

SEC. 306. TECHNICAL ASSISTANCE FOR LEAD HAZARD REDUCTION GRANTEES.

    Section 1011(g) of the Housing and Community Development Act of 1992 (42 U.S.C. 5318 note) is hereby repealed.

SEC. 307. ENVIRONMENTAL REVIEW IN CONNECTION WITH GRANTS FOR LEAD-BASED PAINT HAZARD REDUCTION.

    Section 1011 of the Housing and Community Development Act of 1992 (42 U.S.C. 5318 note) is amended--

      (1) by redesignating subsection (o) as subsection (p); and

      (2) by adding after subsection (n) the following new subsection:

    ‘(o) ENVIRONMENTAL REVIEW-

      ‘(1) IN GENERAL- For purposes of environmental review, decisionmaking, and action pursuant to the National Environmental Policy Act of 1960 and other provisions of law that further the purposes of such Act, a grant under this section shall be treated as assistance under the HOME Investment Partnership Act, established under title II of the Cranston-Gonzalez National Affordable Housing Act, and shall be subject to the regulations promulgated by the Secretary to implement section 288 of such Act.

      ‘(2) APPLICABILITY- This subsection shall apply to--

        ‘(A) grants awarded under this section; and

        ‘(B) grants awarded to States and units of general local government for the abatement of significant lead-based paint and lead dust hazards in low- and moderate-income owner-occupied units and low-income privately owned rental units pursuant to title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1992 (Public Law 102-139, 105 Stat. 736).’.

SEC. 308. FIRE SAFETY IN FEDERALLY ASSISTED HOUSING.

    Section 31(c)(2)(A)(i) of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2227(c)(2)(A)(i)) is amended by adding ‘(or equivalent level of safety)’ after ‘system’.

SEC. 309. SECTION 23 CONVERSION PROJECTS.

    (a) SECTION 23 CONVERSION-

      (1) AUTHORIZATION- Notwithstanding contracts entered into pursuant to section 14(b)(2) of the United States Housing Act of 1937, the Secretary is authorized to enter into obligations for conversion of Leonard Terrace Apartments in Grand Rapids, Michigan, from a leased housing contract under section 23 of such Act to a project-based rental assistance contract under section 8 of such Act.

      (2) REPAYMENT REQUIRED- The authorization made in paragraph (1) is conditioned on the repayment to the Secretary of all amounts received by the public housing agency under the comprehensive improvement assistance program under section 14 of the United States Housing Act of 1937 for the Leonard Terrace Apartment project and the amounts, as determined by the Secretary, received by the public housing agency under the formula in section 14(k) of such Act by reason of the project.

    (b) CONTRACT RENEWAL-

      (1) IN GENERAL- Leased housing contracts under section 23 of the United States Housing Act of 1937, as such section existed before the date of enactment of the Housing and Community Development Act of 1974, that--

        (A) were converted to section 8 contracts on terms similar to or the same as the terms of the section 8 new construction program; and

        (B) expire during fiscal year 1994 or 1995;

      shall be extended for a period not to exceed 5 years as if the rents on such projects were established under the section 8 new construction program, except that section 8(c)(2)(C) of the United States Housing Act of 1937 shall not apply to such contracts.

      (2) BUDGET COMPLIANCE- To the extent that paragraph (1) results in additional costs under this section, such paragraph shall be effective only to the extent that amounts to cover such additional costs are provided in advance in appropriation Acts.

SEC. 310. INDEMNIFICATION OF CONTRACTORS FOR INTELLECTUAL PROPERTY RIGHTS DISPUTES.

    A recipient of Federal housing assistance may not use such funds to indemnify contractors or subcontractors against costs associated with litigating or settling disputes concerning the infringement of intellectual property rights.

Subtitle B--Multifamily Housing

SEC. 321. CORRECTION OF MULTIFAMILY MORTGAGE LIMITS.

    The National Housing Act (12 U.S.C. 1701 et seq.) is amended in sections 207(c)(3), 213(b)(2), 220(d)(3)(B)(iii), and 234(e)(3) by striking ‘$59,160’ each place it appears and inserting ‘$56,160’.

SEC. 322. FHA MULTIFAMILY RISK-SHARING; HFA PILOT PROGRAM AMENDMENTS.

    (a) IN GENERAL- Section 542(c) of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note) is amended--

      (1) in paragraph (1), by inserting after ‘qualified housing finance agencies’ the following: ‘(including entities established by States that provide mortgage insurance)’;

      (2) in paragraph (2)--

        (A) in subparagraph (C), by striking the last sentence and inserting the following: ‘Such agreements shall specify that the qualified housing finance agency and the Secretary shall share any loss in accordance with the risk-sharing agreement.’; and

        (B) by adding at the end the following new subparagraph:

        ‘(F) DISCLOSURE OF RECORDS- Qualified housing finance agencies shall make available to the Secretary such financial and other records as the Secretary deems necessary for program review and monitoring purposes.’;

      (3) in paragraph (7)--

        (A) by striking ‘very low-income’; and

        (B) by striking ‘(2)’; and

      (4) by adding at the end the following new paragraphs:

      ‘(9) ENVIRONMENTAL AND OTHER REVIEWS-

        ‘(A) ENVIRONMENTAL REVIEWS-

          ‘(i) IN GENERAL- (I) In order to assure that the policies of the National Environmental Policy Act of 1969 and other provisions of law which further the purposes of such Act (as specified in regulations issued by the Secretary) are most effectively implemented in connection with the insurance of mortgages under subsection (c)(2), and to assure to the public undiminished protection of the environment, the Secretary may, under such regulations, in lieu of the environmental protection procedures otherwise applicable, provide for agreements to endorse for insurance mortgages under subsection (c)(2) upon the request of qualified housing finance agencies under this subsection, if the State or unit of general local government, as designated by the Secretary in accordance with regulations, assumes all of the responsibilities for environmental review, decisionmaking, and action pursuant to such Act, and such other provisions of law as the regulations of the Secretary may specify, that would otherwise apply to the Secretary with respect to the insurance of mortgages on particular properties.

          ‘(II) The Secretary shall issue regulations to carry out this subparagraph only after consultation with the Council on Environmental Quality. Such regulations shall, among other matters, provide--

            ‘(aa) for the monitoring of the performance of environmental reviews under this subparagraph;

            ‘(bb) subject to the discretion of the Secretary, for the provision or facilitation of training for such performance; and

            ‘(cc) subject to the discretion of the Secretary, for the suspension or termination by the Secretary of the qualified housing finance agency’s responsibilities under subclause (I).

          ‘(III) The Secretary’s duty under subclause (II) shall not be construed to limit any responsibility assumed by a State or unit of general local government with respect to any particular property under subclause (I).

          ‘(ii) PROCEDURE- The Secretary shall approve a mortgage for the provision of mortgage insurance subject to the procedures authorized by this paragraph only if, not less than 15 days prior to such approval, prior to any approval, commitment, or endorsement of mortgage insurance on the property on behalf of the Secretary, and prior to any commitment by the qualified housing finance agency to provide financing under the risk-sharing agreement with respect to the property, the qualified housing finance agency submits to the Secretary a request for such approval, accompanied by a certification of the State or unit of general local government that meets the requirements of clause (iii). The Secretary’s approval of any such certification shall be deemed to satisfy the Secretary’s responsibilities under the National Environmental Policy Act of 1969 and such other provisions of law as the regulations of the Secretary specify insofar as those responsibilities relate to the provision of mortgage insurance on the property that is covered by such certification.

          ‘(iii) CERTIFICATION- A certification under the procedures authorized by this paragraph shall--

            ‘(I) be in a form acceptable to the Secretary;

            ‘(II) be executed by the chief executive officer or other officer of the State or unit of general local government who qualifies under regulations of the Secretary;

            ‘(III) specify that the State or unit of general local government under this section has fully carried out its responsibilities as described under clause (i); and

            ‘(IV) specify that the certifying officer consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 and under each provision of law specified in regulations issued by the Secretary insofar as the provisions of such Act or such other provisions of law apply pursuant to clause (i), and is authorized and consents on behalf of the State or unit of general local government and himself or herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of the responsibilities as such an official.

          ‘(iv) APPROVAL BY STATES- In cases in which a unit of general local government carries out the responsibilities described in clause (i), the Secretary may permit the State to perform those actions of the Secretary described in clause (ii) and the performance of such actions by the State, where permitted by the Secretary, shall be deemed to satisfy the Secretary’s responsibilities referred to in the second sentence of clause (ii).

        ‘(B) LEAD-BASED PAINT POISONING PREVENTION- In carrying out the requirements of section 302 of the Lead-Based Paint Poisoning Prevention Act, the Secretary may provide by regulation for the assumption of all or part of the Secretary’s duties under such Act by qualified housing finance agencies, for purposes of this section.

        ‘(C) CERTIFICATION OF SUBSIDY LAYERING COMPLIANCE- The requirements of section 102(d) of the Department of Housing and Urban Development Reform Act of 1989 may be satisfied in connection with a commitment to insure a mortgage under this subsection by a certification by a housing credit agency (including an entity established by a State that provides mortgage insurance) to the Secretary that the combination of assistance within the jurisdiction of the Secretary and other government assistance provided in connection with a property for which a mortgage is to be insured shall not be any greater than is necessary to provide affordable housing.

      ‘(10) DEFINITIONS- For purposes of this subsection, the following definitions shall apply:

        ‘(A) MORTGAGE- The term ‘mortgage’ means a first mortgage on real estate that is--

          ‘(i) owned in fee simple; or

          ‘(ii) subject to a leasehold interest that--

            ‘(I) has a term of not less than 99 years and is renewable; or

            ‘(II) has a remaining term that extends beyond the maturity of the mortgage for a period of not less than 10 years.

        ‘(B) FIRST MORTGAGE- The term ‘first mortgage’ means a single first lien given to secure advances on, or the unpaid purchase price of, real estate, under the laws of the State in which the real estate is located, together with the credit instrument, if any, secured thereby. Any other financing permitted on property insured under this section must be expressly subordinate to the insured mortgage.

        ‘(C) UNIT OF GENERAL LOCAL GOVERNMENT; STATE- The terms ‘unit of general local government’ and ‘State’ have the same meanings as in section 102(a) of the Housing and Community Development Act of 1974.’.

    (b) DEFINITION OF MULTIFAMILY HOUSING- Section 544(1) of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note) is amended to read as follows:

      ‘(1) The term ‘multifamily housing’ means housing accommodations on the mortgaged property that are designed principally for residential use, conform to standards satisfactory to the Secretary, and consist of not less than 5 rental units on 1 site. These units may be detached, semidetached, row house, or multifamily structures.’.

SEC. 323. SUBSIDY LAYERING REVIEW.

    Section 911 of the Housing and Community Development Act of 1992 (42 U.S.C. 3545 note) is amended--

      (1) by striking subsection (a) and inserting the following:

    ‘(a) CERTIFICATION OF SUBSIDY LAYERING COMPLIANCE- The requirements of section 102(d) of the Department of Housing and Urban Development Reform Act of 1989 may be satisfied in connection with a project receiving assistance under a program that is within the jurisdiction of the Department of Housing and Urban Development and under section 42 of the Internal Revenue Code of 1986 by a certification by a housing credit agency to the Secretary, submitted in accordance with guidelines established by the Secretary, that the combination of assistance within the jurisdiction of the Secretary and other government assistance provided in connection with a property for which assistance is to be provided within the jurisdiction of the Department of Housing and Urban Development and under section 42 of the Internal Revenue Code of 1986 shall not be any greater than is necessary to provide affordable housing.’; and

      (2) by striking subsection (c) and inserting the following:

    ‘(c) REVOCATION BY SECRETARY- If the Secretary determines that a housing credit agency has failed to comply with the guidelines established under subsection (a), the Secretary--

      ‘(1) may inform the housing credit agency that the agency may no longer submit certification of subsidy layering compliance under this section; and

      ‘(2) shall carry out section 102(d) of the Housing and Urban Development Reform Act relating to affected projects allocated a low-income housing tax credit pursuant to section 42 of the Internal Revenue Code of 1986.’.

Subtitle C--Rural Housing

SEC. 331. TECHNICAL CORRECTION TO RURAL HOUSING PRESERVATION PROGRAM.

    Section 515(c)(1) of the Housing Act of 1949 (42 U.S.C. 1485(c)(1)) is amended by striking ‘December 21, 1979’ and inserting ‘December 15, 1989’.

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