[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2968 Introduced in Senate (IS)]
106th CONGRESS
2d Session
S. 2968
To empower communities and individuals by consolidating and reforming
the programs of the Department of Housing and Urban Development.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 27, 2000
Mr. Allard introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To empower communities and individuals by consolidating and reforming
the programs of the Department of Housing and Urban Development.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Local Housing
Opportunities Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Effective date.
TITLE I--PROGRAM CONSOLIDATION
Sec. 101. Prohibition of unauthorized programs at the Department.
Sec. 102. Elimination and consolidation of HUD programs.
Sec. 103. HUD consolidation task force.
TITLE II--COMMUNITY EMPOWERMENT
Sec. 201. Reauthorization of community development block grants and
prohibition of set-asides.
Sec. 202. Community notification of opt-outs.
Sec. 203. Urban homestead requirement.
Sec. 204. Authorization of Moving to Work program.
TITLE III--HOMELESS ASSISTANCE REFORM
Sec. 301. Consolidation of HUD homeless assistance funds.
Sec. 302. Establishment of the McKinney Homeless Assistance Performance
Fund.
Sec. 303. Repeal and savings provisions.
Sec. 304. Implementation.
TITLE IV--RURAL HOUSING
Sec. 401. Mutual and self-help housing technical assistance and
training grants authorization.
Sec. 402. Enhancement of the Rural Housing Repair loan program for the
elderly.
Sec. 403. Enhancement of efficiency of rural housing preservation
grants.
Sec. 404. Project accounting records and practices.
Sec. 405. Operating assistance for migrant farm worker projects.
TITLE V--VOUCHER REFORM
Sec. 501. Authorization of appropriations for rental vouchers for
relocation of witnesses and victims of
crime.
Sec. 502. Revisions to the lease addendum.
Sec. 503. Report regarding housing voucher program.
Sec. 504. Conducting quality standard inspections on a property basis
rather than a unit basis.
TITLE VI--PROGRAM MODERNIZATION
Sec. 601. Assistance for self-help housing providers.
Sec. 602. Local capacity building for community development and
affordable housing.
Sec. 603. Work requirement for public housing residents: coordination
of Federal housing assistance with State
welfare reform work programs.
Sec. 604. Simplified FHA downpayment calculation.
Sec. 605. Flexible use of CDBG funds.
Sec. 606. Use of section 8 assistance in grandfamily housing assisted
with HOME funds.
Sec. 607. Section 8 homeownership option downpayment assistance.
Sec. 608. Reauthorization of Neighborhood Reinvestment Corporation.
TITLE VII--STATE HOUSING BLOCK GRANT
Sec. 701. State control of public and assisted housing funds.
TITLE VIII--PRIVATE SECTOR INCENTIVES
Sec. 801. Sense of Congress regarding low-income housing tax credit
State ceilings and private activity bond
caps.
TITLE IX--ENFORCEMENT
Sec. 901. Prohibition on use of appropriated funds for lobbying by the
department.
Sec. 902. Regulations.
SEC. 2. DEFINITIONS.
In this Act--
(1) the term ``Committees'' means--
(A) the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Subcommittee on Housing
and Transportation of that Committee; and
(B) the Committee on Banking and Financial Services
of the House of Representatives and the Subcommittee on
Housing and Community Opportunity of that Committee;
(2) the term ``Department'' means the Department of Housing
and Urban Development; and
(3) the term ``Secretary'' means the Secretary of Housing
and Urban Development.
SEC. 3. EFFECTIVE DATE.
Except as otherwise expressly provided in this Act or an amendment
made by this Act, this Act and the amendments made by this Act shall
take effect on October 1, 2001.
TITLE I--PROGRAM CONSOLIDATION
SEC. 101. PROHIBITION OF UNAUTHORIZED PROGRAMS AT THE DEPARTMENT.
(a) In General.--Beginning on the effective date of this Act, the
Secretary may not carry out any program that is not explicitly
authorized by Federal law.
(b) Report.--Not later than 60 days after the date of enactment of
this Act, the Secretary shall submit to the Committees a report, which
shall include a detailed description of each program carried out by the
Department, and the statutory authorization for that program or, if no
explicit authorization exists, an explanation of the legal authority
under which the program is being carried out.
SEC. 102. ELIMINATION AND CONSOLIDATION OF HUD PROGRAMS.
(a) Community Investment Corporation Demonstration.--Section 853 of
the Housing and Community Development Act of 1992 (42 U.S.C. 5305 note)
is repealed.
(b) New Towns Demonstration Program for Emergency Relief of Los
Angeles.--Title XI of the Housing and Community Development Act of 1992
(42 U.S.C. 5318 note) is repealed.
(c) Solar Assistance Financing Entity.--Section 912 of the Housing
and Community Development Act of 1992 (42 U.S.C. 5511a) is repealed.
(d) Urban Development Action Grants.--
(1) UDAG repeal.--Section 119 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5318) is repealed.
(2) Conforming amendments.--Title I of the Housing and
Community Development Act of 1974 (42 U.S.C. 5301 et seq.) is
amended--
(A) in section 104(d)(1), by striking ``or 119''
and ``or section 119'';
(B) in section 104(d)(2), by striking ``or 119'';
(C) in section 104(d)(2)(C), by striking ``or
119'';
(D) in section 107(e)(1), by striking ``, section
106(a)(1), or section 119'' and inserting ``or section
106(a)(1),'';
(E) in section 107(e)(2), by striking ``section
106(a)(1), or section 119'' and inserting ``or section
106(a)(1)''; and
(F) in section 113(a)--
(i) in paragraph (2), by adding ``and'' at
the end;
(ii) by striking paragraph (3); and
(iii) by redesignating paragraph (4) as
paragraph (3).
(e) Special Purpose Grants.--Section 107 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5307) is amended--
(1) in subsection (a)(1)--
(A) by striking subparagraphs (C), (D), and (G);
(B) by redesignating subparagraphs (E), (F), (H),
and (I) as subparagraphs (C), (D), (E), and (F),
respectively; and
(C) in subparagraph (D) (as redesignated) by
striking ``(6)'' and inserting ``(5)''; and
(2) in subsection (b)--
(A) in paragraph (4), by adding ``and'' at the end;
(B) by striking paragraphs (5) and (7);
(C) by redesignating paragraph (6) as paragraph
(5); and
(D) in paragraph (5) (as redesignated) by striking
``; and'' and inserting a period.
(f) Moderate Rehabilitation Assistance in Disasters.--Section 932
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
1437c note) is repealed.
(g) Rent Supplement Program.--
(1) Repeal.--Section 101 of the Housing and Urban
Development Act of 1965 (12 U.S.C. 1701s) is repealed.
(2) References.--Any reference in any provision of law to
section 101 of the Housing and Urban Development Act of 1965
(12 U.S.C. 1701s) shall be construed to refer to that section
as in existence immediately before the effective date of this
Act.
(h) National Homeownership Trust Demonstration.--Subtitle A of
title III of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12851 et seq.) is repealed.
(i) Hope Programs.--
(1) Repeal of hope i program.--
(A) Hope i program repeal.--Title III of the United
States Housing Act of 1937 (42 U.S.C. 1437aaa et seq.)
is repealed.
(B) Conforming amendments.--
(i) United states housing act of 1937.--
Section 8(b) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(b)) is amended--
(I) in paragraph (1), by striking
``(1) In general.--''; and
(II) by striking paragraph (2).
(ii) Housing and community development act
of 1974.--Section 213(e) of the Housing and
Community Development Act of 1974 (42 U.S.C.
1439(e)) is amended by striking ``(b)(1)'' and
inserting ``(b)''.
(2) Repeal of hope ii and iii programs.--
(A) Hope ii.--Subtitle B of title IV of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12871 et seq.) is repealed.
(B) Hope iii.--
(i) In general.--Subtitle C of title IV of
the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12891 et seq.) is
repealed.
(ii) Closeout authority.--Notwithstanding
the repeal made by clause (i), the Secretary
may continue to exercise the authority under
sections 445(b), 445(c)(3), 445(c)(4), and
446(4) of title IV of the Cranston-Gonzalez
National Affordable Housing Act (as amended by
subparagraph (C) of this paragraph) after the
effective date of this Act, to the extent
necessary to terminate the programs under
subtitle C of title IV of that Act.
(C) Amendment of hope iii program authority for
closeout.--
(i) Sale and resale proceeds.--Section 445
of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12895) is amended--
(I) in subsection (b), by striking
``costs'' and all that follows through
``expenses,'';
(II) in subsection (c)(3), by
striking ``the Secretary or''; and
(III) in subsection (c)(4)--
(aa) in the first sentence,
by striking ``Fifty percent of
any'' and inserting ``Any'';
and
(bb) by striking the second
and third sentences.
(ii) Eligibility of private property.--
Section 446(4) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
12896(4)) is amended to read as follows:
``(4) The term `eligible property' means a single family
property containing not more than 4 units (excluding public
housing under the United States Housing Act of 1937, or Indian
housing under the Native American Housing Assistance and Self-
Determination Act of 1996).''.
(3) Conforming amendments.--
(A) In general.--Title IV of the Cranston-Gonzalez
National Affordable Housing Act is amended--
(i) by striking sections 401 and 402 (42
U.S.C. 1437aaa note; 12870);
(ii) in section 454(b)(2) (42 U.S.C.
12899c(b)(2)), by striking ``to be used for the
purposes of providing homeownership under
subtitle B and subtitle C of this title''; and
(iii) in section 455 (42 U.S.C. 12899d), by
striking subsection (d) and redesignating
subsections (e) through (g) as subsections (d)
through (f), respectively.
(B) Department of housing and urban development
act.--Section 7(r)(2) of the Department of Housing and
Urban Development Act (42 U.S.C. 3535(r)(2)) is amended--
(i) in subparagraph (A), by striking
``titles I and II'' and inserting ``title I'';
and
(ii) in subparagraph (K), by striking
``titles II, III, and IV'' and inserting
``title II''.
(j) Energy Efficiency Demonstration.--Section 961 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12712 note) is
repealed.
(k) Technical Assistance and Training for IHAs.--Section 917 of the
Housing and Community Development Act of 1992 (Public Law 102-550; 106
Stat. 3882) is repealed.
(l) Elimination of Investor-Owners Under the Section 203(k)
Program.--Section 203(g)(2) of the National Housing Act (12 U.S.C.
1709(g)(2)) is amended--
(1) in subparagraph (D), by adding ``or'' at the end;
(2) by striking subparagraph (E); and
(3) by redesignating subparagraph (F) as subparagraph (E).
(m) Certificate and Voucher Assistance for Rental Rehabilitation
Projects.--Section 8(u) of the United States Housing Act of 1937 (42
U.S.C. 1437f(u)) is repealed.
(n) Mortgage and Loan Insurance Programs.--
(1) In general.--Sections 220(h), 245(b), and titles VI,
VII, and IX of the National Housing Act are repealed.
(2) Additional amendments.--The National Housing Act is
amended--
(A) in section 1 (12 U.S.C. 1702), by striking
``VI, VII, VIII, IX'' each place it appears and
inserting ``VIII,'';
(B) in section 203(k)(5) (12 U.S.C. 1709(k)(5)), by
striking the second sentence; and
(C) in section 223 (12 U.S.C. 1715n)--
(i) by striking subsection (a) and
inserting the following:
``(a) In General.--Notwithstanding any of the provisions of this
Act and without regard to limitations upon eligibility contained in any
section or title of this Act, other than the limitation in section
203(g), the Secretary is authorized upon application by the mortgagee,
to insure or make commitments to insure under any section or title of
this Act any mortgage--
``(1) given to refinance an existing mortgage insured under
this Act, except that the principal amount of any such
refinancing mortgage shall not exceed the original principal
amount or the unexpired term of such existing mortgage and
shall bear interest at such rate as may be agreed upon by the
mortgagor and the mortgagee, except that--
``(A) the principal amount of any such refinancing
mortgage may equal the outstanding balance of an
existing mortgage insured pursuant to section 245, if
the amount of the monthly payment due under the
refinancing mortgage is less than that due under the
existing mortgage for the month in which the
refinancing mortgage is executed;
``(B) a mortgagee may not require a minimum
principal amount to be outstanding on the loan secured
by the existing mortgage;
``(C) in any case involving the refinancing of a
loan in which the Secretary determines that the
insurance of a mortgage for an additional term will
inure to the benefits of the applicable insurance fund,
taking into consideration the outstanding insurance
liability under the existing insured mortgage, such
refinancing mortgage may have a term not more than
twelve years in excess of the unexpired term of such
existing insured mortgage; and
``(D) any multifamily mortgage that is refinanced
under this paragraph shall be documented through
amendments to the existing insurance contract and shall
not be structured through the provisions of a new
insurance contract; or
``(2) executed in connection with the sale by the
Government of any housing acquired pursuant to section 1013 of
the Demonstration Cities and Metropolitan Development Act of
1966.''; and
(ii) in subsection (d)(5), by striking ``A
loan'' and all that follows through ``and
loans'' and inserting ``Loans''.
(o) Transition Rules.--
(1) Effect on contracts.--The repeal of program authorities
under this section shall not affect any legally binding
obligation entered into before the effective date of this Act.
(2) Savings provisions.--
(A) In general.--Except as otherwise provided in
this Act, any funds or obligation authorized by,
activity conducted under, or mortgage or loan insured
under, a provision of law repealed by this section
shall continue to be governed by the provision as in
existence immediately before the effective date of this
Act.
(B) Insurance.--The insurance authorities repealed
by subsection (n)(1) and the provisions of the National
Housing Act applicable to a mortgage or loan insured
under any of such authorities, as such authorities and
provisions existed immediately before repeal, shall
continue to apply to a mortgage or loan insured under
any of such authorities prior to repeal, and a mortgage
or loan for which, prior to the date of repeal, the
Secretary has issued a firm commitment for insurance
under any of such authorities or a Direct Endorsement
underwriter has approved, in a form acceptable to the
Secretary, a mortgage or loan for insurance under such
authorities.
SEC. 103. HUD CONSOLIDATION TASK FORCE.
(a) In General.--There is established a task force to be known as
the ``HUD Consolidation Task Force'', which shall--
(1) consist of the Comptroller General of the United
States, the Secretary, and the Inspector General of the
Department; and
(2) conduct an analysis of legislative and regulatory
options to reduce the number of programs carried out by the
Department through consolidation, elimination, and transfer to
other departments and agencies of the Federal government and to
State and local governments.
(b) Report.--Not later than 6 months after the effective date of
this Act, the HUD Consolidation Task Force shall submit to the
Committees a report, which shall include the results of the analysis
under subsection (a)(2).
TITLE II--COMMUNITY EMPOWERMENT
SEC. 201. REAUTHORIZATION OF COMMUNITY DEVELOPMENT BLOCK GRANTS AND
PROHIBITION OF SET-ASIDES.
(a) Reauthorization.--The last sentence of section 103 of the
Housing and Community Development Act of 1974 (42 U.S.C. 5303) is
amended to read as follows: ``For purposes of assistance under section
106, there is authorized to be appropriated $4,850,000,000 for fiscal
year 2001 and such sums as may be necessary for each of fiscal years
2002 through 2005.''.
(b) Prohibition of Set-Asides.--Section 103 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5303) is amended--
(1) by inserting ``(a) In General.--'' after ``Sec. 103.'';
and
(2) by adding at the end the following:
``(b) Prohibition of Set-Asides.--Except as provided in paragraphs
(1) and (2) of section 106(a) and in section 107, amounts appropriated
pursuant to subsection (a) of this section or otherwise to carry out
this title (other than section 108) shall be used only for formula-
based grants allocated pursuant to section 106 and may not be otherwise
used unless the provision of law providing for such other use
specifically refers to this subsection and specifically states that
such provision modifies or supersedes the provisions of this
subsection.
``(c) Point of Order.--Notwithstanding any other provision of law,
it shall not be in order in the Senate to consider any measure or
amendment that provides for a set-aside prohibited under subsection
(b). The point of order provided by this subsection may only be waived
or suspended by a vote of three-fifths of the members of the Senate
duly chosen and sworn.''.
SEC. 202. COMMUNITY NOTIFICATION OF OPT-OUTS.
Section 8(c)(8)(A) of the Housing Act of 1937 (42 U.S.C.
1437f(c)(8)(A)) is amended by adding at the end the following: ``Upon
receipt of a written notice under this subparagraph, the Secretary
shall forward a copy of the notice to the top elected official for the
unit of local government in which the property is located.''.
SEC. 203. URBAN HOMESTEAD REQUIREMENT.
(a) Disposition of Unoccupied and Substandard Public Housing.--
(1) Publication in federal register.--
(A) In general.--Subject to subparagraph (B),
beginning 6 months after the effective date of this
Act, and every 6 months thereafter, the Secretary shall
publish in the Federal Register a list of each
unoccupied multifamily housing project, substandard
multifamily housing project, and other residential
property that is owned by the Secretary.
(B) Exception for certain projects and
properties.--
(i) Projects.--A project described in
subparagraph (A) shall not be included in a
list published under subparagraph (A) if less
than 6 months have elapsed since the later of--
(I) the date on which the project
was acquired by the Secretary; or
(II) the date on which the project
was determined to be unoccupied or
substandard.
(ii) Properties.--A property described in
subparagraph (A) shall not be included in a
list published under subparagraph (A) if less
than 6 months have elapsed since the date on
which the property was acquired by the
Secretary.
(b) Transfer of Unoccupied and Substandard HUD-Held Housing to
Local Governments and Community Development Corporations.--Section 204
of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1997 (12
U.S.C. 1715z-11a) is amended--
(1) by striking ``Flexible Authority.--'' and inserting the
following: ``(a) Flexible Authority for Disposition of
Multifamily Projects.--''; and
(2) by adding at the end the following:
``(b) Transfer of Unoccupied and Substandard Housing to Local
Governments and Community Development Corporations.--
``(1) Definitions.--In this subsection:
``(A) Community development corporation.--The term
`community development corporation' means a nonprofit
organization whose primary purpose is to promote
community development by providing housing
opportunities for low-income families.
``(B) Cost recovery basis.--The term `cost recovery
basis' means, with respect to any sale of a residential
property by the Secretary, that the purchase price paid
by the purchaser is equal to or greater than or equal
to the costs incurred by the Secretary in connection
with such property during the period beginning on the
date on which the Secretary acquires title to the
property and ending on the date on which the sale is
consummated.
``(C) Multifamily housing project.--The term
`multifamily housing project' has the meaning given the
term in section 203 of the Housing and Community
Development Amendments of 1978.
``(D) Qualified hud property.--The term `qualified
HUD property' means any property that is owned by the
Secretary and is--
``(i) an unoccupied multifamily housing
project;
``(ii) a substandard multifamily housing
project; or
``(iii) an unoccupied single family
property that--
``(I) has been determined by the
Secretary not to be an eligible
property under section 204(h) of the
National Housing Act (12 U.S.C.
1710(h)); or
``(II) is an eligible property
under such section 204(h), but--
``(aa) is not subject to a
specific sale agreement under
such section; and
``(bb) has been determined
by the Secretary to be
inappropriate for continued
inclusion in the program under
such section 204(h) pursuant to
paragraph (10) of such section.
``(E) Residential property.--The term `residential
property' means a property that is a multifamily
housing project or a single family property.
``(F) Secretary.--The term `Secretary' means the
Secretary of Housing and Urban Development.
``(G) Severe physical problems.--The term `severe
physical problems' means, with respect to a dwelling
unit, that the unit--
``(i) lacks hot or cold piped water, a
flush toilet, or both a bathtub and a shower in
the unit, for the exclusive use of that unit;
``(ii) on not less than 3 separate
occasions during the preceding winter months,
was uncomfortably cold for a period of more
than 6 consecutive hours due to a malfunction
of the heating system for the unit;
``(iii) has no functioning electrical
service, exposed wiring, any room in which
there is not a functioning electrical outlet,
or has experienced 3 or more blown fuses or
tripped circuit breakers during the preceding
90-day period;
``(iv) is accessible through a public
hallway in which there are no working light
fixtures, loose or missing steps or railings,
and no elevator; or
``(v) has severe maintenance problems,
including water leaks involving the roof,
windows, doors, basement, or pipes or plumbing
fixtures, holes or open cracks in walls or
ceilings, severe paint peeling or broken
plaster, and signs of rodent infestation.
``(H) Single family property.--The term `single
family property' means a 1- to 4-family residence.
``(I) Substandard.--The term `substandard' means,
with respect to a multifamily housing project, that 25
percent or more of the dwelling units in the project
have severe physical problems.
``(J) Unit of general local government.--The term
`unit of general local government' has the meaning
given that term in section 102(a) of the Housing and
Community Development Act of 1974.
``(K) Unoccupied.--The term `unoccupied' means,
with respect to a residential property, that the unit
of general local government having jurisdiction over
the area in which the project is located has certified
in writing that the property is not inhabited.
``(2) Transfer authority.--Notwithstanding the authority
under subsection (a) and the last sentence of section 204(g) of
the National Housing Act (12 U.S.C. 1710(g)), the Secretary of
Housing and Urban Development shall transfer ownership of any
qualified HUD property included in the most recent list
published by the Secretary under subsection (a) to a unit of
general local government having jurisdiction for the area in
which the property is located or to a community development
corporation which operates within such a unit of general local
government in accordance with this subsection, but only to the
extent that units of general local government and community
development corporations submit a written request for the
transfer.
``(3) Timing.--The Secretary shall establish procedures
that provide for--
``(A) time deadlines for transfers under this
subsection;
``(B) notification to units of general local
government and community development corporations of
qualified HUD properties in their jurisdictions;
``(C) such units and corporations to express
interest in the transfer under this subsection of such
properties;
``(D) a right of first refusal for transfer of
qualified HUD properties to such units and
corporations, under which the Secretary shall accept an
offer to purchase such a property made by such unit or
corporation during a period established by the
Secretary, but in the case of an offer made by a
community development corporation only if the offer
provides for purchase on a cost recovery basis; and
``(E) a written explanation, to any unit of general
local government or community development corporation
making an offer to purchase a qualified HUD property
under this subsection that is not accepted, of the
reason that such offer was not acceptable.
``(4) Other disposition.--With respect to any qualified HUD
property, if the Secretary does not receive an acceptable offer
to purchase the property pursuant to the procedure established
under paragraph (3), the Secretary shall dispose of the
property to the unit of general local government in which
property is located or to community development corporations
located in such unit of general local government on a
negotiated, competitive bid, or other basis, on such terms as
the Secretary deems appropriate.
``(5) Satisfaction of indebtedness.--Before transferring
ownership of any qualified HUD property pursuant to this
subsection, the Secretary shall satisfy any indebtedness
incurred in connection with the property to be transferred, by
canceling the indebtedness.
``(6) Determination of status of properties.--To ensure
compliance with the requirements of this subsection, the
Secretary shall take the following actions:
``(A) Upon enactment.--Not later than 60 days after
the effective date of the Local Housing Opportunities
Act, the Secretary shall assess each residential
property owned by the Secretary to determine whether
the property is a qualified HUD property.
``(B) Upon acquisition.--Upon acquiring any
residential property, the Secretary shall promptly
determine whether the property is a qualified HUD
property.
``(C) Updates.--The Secretary shall periodically
reassess the residential properties owned by the
Secretary to determine whether any such properties have
become qualified HUD properties.
``(7) Tenant leases.--This subsection shall not affect the
terms or the enforceability of any contract or lease entered
into with respect to any residential property before the date
that such property becomes a qualified HUD property.
``(8) Use of property.--Property transferred under this
subsection shall be used only for appropriate neighborhood
revitalization efforts, including homeownership, rental units,
commercial space, and parks, consistent with local zoning
regulations, local building codes, and subdivision regulations
and restrictions of record.
``(9) Inapplicability to properties made available for
homeless.--Notwithstanding any other provision of this
subsection, this subsection shall not apply to any property
that the Secretary determines is to be made available for use
by the homeless pursuant to subpart E of part 291 of title 24,
Code of Federal Regulations (as in effect on January 1, 2000),
during the period that the properties are so available.
``(10) Protection of existing contracts.--This subsection
may not be construed to alter, affect, or annul any legally
binding obligations entered into with respect to a qualified
HUD property before the property becomes a qualified HUD
property.''.
(c) Procedures.--Not later than 6 months after the date of
enactment of this Act, the Secretary shall establish, by rule,
regulation, or order, such procedures as may be necessary to carry out
this section and the amendments made by this section.
SEC. 204. AUTHORIZATION OF MOVING TO WORK PROGRAM.
Section 204 of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1996
(as contained in section 101(e) of the Omnibus Consolidated Rescissions
and Appropriations Act of 1996) (42 U.S.C. 1437f note) is amended--
(1) in the section heading, by striking ``demonstration''
and inserting ``program'';
(2) in subsection (a), by striking ``this demonstration''
and inserting ``this section'';
(3) in subsection (b)--
(A) in the first sentence--
(i) by striking ``demonstration''; and
(ii) by striking ``up to 30'';
(B) in the third sentence, by striking ``Under the
demonstration, notwithstanding'' and inserting
``Notwithstanding''; and
(C) by striking the second sentence;
(4) in subsection (c)--
(A) in the matter preceding paragraph (1), by
striking ``demonstration'' and inserting ``program
under this section'';
(B) in paragraph (3)--
(i) in subparagraph (A), by striking
``demonstration'';
(ii) in subparagraph (B), by striking
``demonstration'' and inserting ``section'';
and
(iii) in subparagraph (E), by striking
``demonstration program'' and inserting
``program under this section''; and
(C) in paragraph (4), by striking ``demonstration''
and inserting ``program under this section'';
(5) by striking subsection (d) and inserting the following:
``(d) Approval of Applications.--Not later than 60 days after
receiving an application submitted in accordance with subsection (c),
the Secretary shall approve the application, unless the Secretary makes
a written determination that the applicant has a most recent score
under the public housing management assessment program under section
6(j)(2) of the United States Housing Act of 1937 (or any successor
assessment program for public housing agencies), that is among the
lowest 20 percent of the scores of all public housing agencies.'';
(6) in subsection (e)--
(A) in paragraph (1), by striking ``this
demonstration'' and inserting ``the program under this
section''; and
(B) in paragraph (2), by striking ``demonstration''
and inserting ``program under this section'';
(7) in subsection (f), by striking ``demonstration under
this part'' and inserting ``program under this section'';
(8) in subsection (g)--
(A) in paragraph (1), by striking ``this
demonstration'' and inserting ``the program under this
section''; and
(B) in paragraph (2), by striking ``demonstration''
and inserting ``program under this section'';
(9) in subsection (h), by striking ``demonstration'' each
place it appears and inserting ``program under this section'';
(10) in subsection (i), by striking ``demonstration'' and
inserting ``program under this section''; and
(11) in subsection (j), by striking ``demonstration'' and
inserting ``program''.
TITLE III--HOMELESS ASSISTANCE REFORM
SEC. 301. CONSOLIDATION OF HUD HOMELESS ASSISTANCE FUNDS.
The purposes of this title are to facilitate the effective and
efficient management of the homeless assistance programs of the
Department by--
(1) reducing and preventing homelessness by supporting the
creation and maintenance of community-based, comprehensive
systems dedicated to returning families and individuals to
self-sufficiency;
(2) reorganizing the homeless housing assistance
authorities under the Stewart B. McKinney Homeless Assistance
Act into a McKinney Homeless Assistance Performance Fund;
(3) assisting States and local governments, in partnership
with private nonprofit service providers, to use homeless
funding more efficiently and effectively;
(4) simplifying and making more flexible the provision of
Federal homeless assistance;
(5) maximizing the ability of a community to implement a
coordinated, comprehensive system for providing assistance to
homeless families and individuals;
(6) making more efficient and equitable the manner in which
homeless assistance is distributed;
(7) reducing the Federal role in local decisionmaking for
homeless assistance programs;
(8) reducing the costs to governmental jurisdictions and
private nonprofit organizations in applying for and using
assistance; and
(9) advancing the goal of meeting the needs of the homeless
population through mainstream programs and establishing
continuum of care systems necessary to achieve that goal.
SEC. 302. ESTABLISHMENT OF THE MCKINNEY HOMELESS ASSISTANCE PERFORMANCE
FUND.
Title IV of the Stewart B. McKinney Homeless Assistance Act (42
U.S.C. 11361 et seq.) is amended to read as follows:
``TITLE IV--McKINNEY HOMELESS ASSISTANCE PERFORMANCE FUND
``SEC. 401. DEFINITIONS.
``In this title:
``(1) Allocation unit of general local government.--
``(A) In general.--The term `allocation unit of
general local government' means a metropolitan city or
an urban county.
``(B) Consortia.--The term `allocation unit of
general local government' may include a consortium of
geographically contiguous metropolitan cities and urban
counties, if the Secretary determines that the
consortium--
``(i) has sufficient authority and
administrative capability to carry out the
purposes of this title on behalf of its member
jurisdictions; and
``(ii) will, according to a written
certification by the State (or States, if the
consortium includes jurisdictions in more than
1 State), direct its activities to the
implementation of a continuum of care system
within the State or States.
``(2) Applicant.--The term `applicant' means a grantee
submitting an application under section 403.
``(3) Consolidated plan.--The term `consolidated plan'
means the single comprehensive plan that the Secretary
prescribes for submission by jurisdictions (which shall be
coordinated and consistent with any 5-year comprehensive plan
of the public housing agency required under section 14(e) of
the United States Housing Act of 1937) that consolidates and
fulfills the requirements of--
``(A) the comprehensive housing affordability
strategy under title I of the Cranston-Gonzalez
National Affordable Housing Act;
``(B) the community development plan under section
104 of the Housing and Community Development Act of
1974; and
``(C) the submission requirements for formula
funding under--
``(i) the Community Development Block Grant
program (authorized by title I of the Housing
and Community Development Act of 1974);
``(ii) the HOME program (authorized by
title II of the Cranston-Gonzalez National
Affordable Housing Act);
``(iii) the McKinney Homeless Assistance
Performance Fund (authorized under this title);
and
``(iv) the AIDS Housing Opportunity Act
(authorized by subtitle D of title VIII of the
Cranston-Gonzalez National Affordable Housing
Act).
``(4) Continuum of care system.--The term `continuum of
care system' means a system developed by a State or local
homeless assistance board that includes--
``(A) a system of outreach and assessment,
including drop-in centers, 24-hour hotlines,
counselors, and other activities designed to engage
homeless individuals and families, bring them into the
continuum of care system, and determine their
individual housing and service needs;
``(B) emergency shelters with essential services to
ensure that homeless individuals and families receive
shelter;
``(C) transitional housing with appropriate
supportive services to help ensure that homeless
individuals and families are prepared to make the
transition to increased responsibility and permanent
housing;
``(D) permanent housing, or permanent supportive
housing, to help meet the long-term housing needs of
homeless individuals and families;
``(E) coordination between assistance provided
under this title and assistance provided under other
Federal, State, and local programs that may be used to
assist homeless individuals and families, including
both targeted homeless assistance programs and other
programs administered by the Departments of Veterans
Affairs, Labor, Health and Human Services, and
Education; and
``(F) a system of referrals for subpopulations of
the homeless (such as homeless veterans, families with
children, battered spouses, persons with mental
illness, persons who have chronic problems with
alcohol, drugs, or both, persons with other chronic
health problems, and persons who have acquired
immunodeficiency syndrome and related diseases) to the
appropriate agencies, programs, or services (including
health care, job training, and income support)
necessary to meet their needs.
``(5) Grantee.--The term `grantee' means--
``(A) an allocation unit of general local
government or insular area that administers a grant
under section 408(b)(1); or
``(B) an allocation unit of general local
government or insular area that designates a public
agency or a private nonprofit organization (or a
combination of such organizations) to administer grant
amounts under section 408(b)(2).
``(6) Homeless individual.--The term `homeless individual'
has the same meaning as in section 103 of this Act.
``(7) Insular area.--The term `insular area' means the
Virgin Islands, Guam, American Samoa, and the Northern Mariana
Islands.
``(8) Low-demand services and referrals.--The term `low-
demand services and referrals' means the provision of health
care, mental health, substance abuse, and other supportive
services and referrals for services in a noncoercive manner,
which may include medication management, education, counseling,
job training, and assistance in obtaining entitlement benefits
and in obtaining other supportive services, including mental
health and substance abuse treatment.
``(9) Metropolitan city.--The term `metropolitan city' has
the same meaning as in section 102(a) of the Housing and
Community Development Act of 1974.
``(10) Person with disabilities.--The term `person with
disabilities' means a person who--
``(A) has a disability as defined in section 223 of
the Social Security Act;
``(B) is determined to have, as determined by the
Secretary, a physical, mental, or emotional impairment
which--
``(i) is expected to be of long-continued
and indefinite duration;
``(ii) substantially impedes his or her
ability to live independently; and
``(iii) is of such a nature that such
ability could be improved by more suitable
housing conditions;
``(C) has a developmental disability, as defined in
section 102 of the Developmental Disabilities
Assistance and Bill of Rights Act; or
``(D) has the disease of acquired immunodeficiency
syndrome or any conditions arising from the etiologic
agent for acquired immunodeficiency syndrome, except
that this subparagraph shall not be construed to limit
eligibility under subparagraphs (A) through (C) or the
provisions referred to in subparagraphs (A) through
(C).
``(11) Private nonprofit organization.--The term `private
nonprofit organization' means a private organization--
``(A) no part of the net earnings of which inures
to benefits of any member, founder, contributor, or
individual;
``(B) that has a voluntary board;
``(C) that has an accounting system, or has
designated a fiscal agent in accordance with
requirements established by the Secretary; and
``(D) that practices nondiscrimination in the
provision of assistance.
``(12) Project sponsor.--The term `project sponsor' means
an entity that--
``(A) provides housing or assistance for homeless
individuals or families by carrying out activities
under this title; and
``(B) meets such minimum standards as the Secretary
considers appropriate.
``(13) Recipient.--The term `recipient' means a grantee
(other than a State when it is distributing grant amounts to
State recipients) and a State recipient.
``(14) Secretary.--The term `Secretary' means the Secretary
of Housing and Urban Development.
``(15) State.--The term `State' means each of the several
States and the Commonwealth of Puerto Rico. The term includes
an agency or instrumentality of a State that is established
pursuant to legislation and designated by the chief executive
officer to act on behalf of the jurisdiction with regard to
provisions of this title.
``(16) State recipient.--The term `State recipient' means
the following entities receiving amounts from the State under
section 408(c)(2)(B):
``(A) A unit of general local government within the
State.
``(B) In the case of an area of the State with
significant homeless needs, if no State recipient is
identified, 1 or more private nonprofit organizations
serving that area.
``(17) Unit of general local government.--The term `unit of
general local government' means--
``(A) a city, town, township, county, parish,
village, or other general purpose political subdivision
of a State;
``(B) the District of Columbia; and
``(C) any agency or instrumentality thereof that is
established pursuant to legislation and designated by
the chief executive officer to act on behalf of the
jurisdiction with regard to provisions of this title.
``(18) Urban county.--The term `urban county' has the same
meaning as in section 102(a) of the Housing and Community
Development Act of 1974.
``(19) Very low-income families.--The term `very low-income
families' has the same meaning as in section 104 of the
Cranston-Gonzalez National Affordable Housing Act.
``SEC. 402. AUTHORIZATIONS.
``(a) In General.--The Secretary may make grants to carry out
activities to assist homeless individuals and families in support of
continuum of care systems in accordance with this title.
``(b) Funding Amounts.--There are authorized to be appropriated to
carry out this title, to remain available until expended--
``(1) $1,050,000,000 for fiscal year 2001;
``(2) $1,070,000,000 for fiscal year 2002; and
``(3) $1,090,000,000 for fiscal year 2003.
``SEC. 403. APPLICATION.
``(a) In General.--Each applicant shall submit the application
required under this section in such form and in accordance with such
procedures as the Secretary shall prescribe. If the applicant is a
State or unit of general local government, the application shall be
submitted as part of the homeless assistance component of the
consolidated plan.
``(b) Continuum of Care Submission.--
``(1) In general.--The allocation unit of general local
government, insular area, or State shall prepare, and submit
those portions of the application related to the development
and implementation of the continuum of care system, as
described in paragraph (2) or (3), as applicable.
``(2) Submission by allocation unit of general local
government or insular area.--The allocation unit of general
local government or insular area shall develop and submit to
the Secretary--
``(A) a continuum of care system consistent with
that defined under section 401(4), which shall be
designed to incorporate any strengths and fill any gaps
in the current homeless assistance activities of the
jurisdiction, and shall include a description of
efforts to address the problems faced by each of the
different subpopulations of homeless individuals;
``(B) a multiyear strategy for implementing the
continuum of care system, including appropriate
timetables and budget estimates for accomplishing each
element of the strategy;
``(C) a 1-year plan, identifying all activities to
be carried out with assistance under this title and
with assistance from other HUD resources allocated in
accordance with the consolidated plan, and describing
the manner in which these activities will further the
strategy; and
``(D) any specific performance measures and
benchmarks for use in assessing the performance of the
grantee under this title that are in addition to
national performance measures and benchmarks
established by the Secretary.
``(3) Submission by state.--The State shall develop and
submit to the Secretary--
``(A) a continuum of care system consistent with
that defined under section 401(4), which shall be
designed to incorporate any strengths and fill any gaps
in the current homeless assistance activities of the
jurisdiction, and shall include a description of
efforts to address the problems faced by each of the
different subpopulations of homeless individuals;
``(B) a multiyear strategy for implementing the
continuum of care systems in areas of the State outside
allocation units of general local government, including
the actions the State will take to achieve the goals
set out in the strategy;
``(C) a 1-year plan identifying--
``(i) in the case of a State carrying out
its own activities under section 408(c)(2)(A),
the activities to be carried out with
assistance under this title and describing the
manner in which these activities will further
the strategy; and
``(ii) in the case of a State distributing
grant amounts to State recipients under section
408(c)(2)(B), the criteria that the State will
use in distributing amounts awarded under this
title, the method of distribution, and the
relationship of the method of distribution to
the homeless assistance strategy; and
``(D) any specific performance measures and
benchmarks for use in assessing the performance of the
grantee under this title that are in addition to
national performance measures and benchmarks
established by the Secretary.
``(c) Submission Requirements for Applicants Other Than States.--
Each application from an applicant other than a State shall include, at
a minimum--
``(1) the continuum of care submission described in
subsection (b)(2);
``(2) a determination on whether the assistance under this
title will be administered by the jurisdiction, a public agency
or private nonprofit organization, or the State, as appropriate
under subsections (b) and (c) of section 408;
``(3) certifications or other such forms of proof of
commitments of financial and other resources sufficient to
comply with the match requirements under section 405(a)(1);
``(4) a certification that the applicant is following a
current approved consolidated plan;
``(5) a certification that the grant will be conducted and
administered in conformity with title VI of the Civil Rights
Act of 1964, section 504 of the Rehabilitation Act of 1973, and
the Fair Housing Act, and the grantee will affirmatively
further fair housing; and
``(6) a certification that the applicant will comply with
the requirements of this title and other applicable laws.
``(d) Submission Requirements for States.--Each application from a
State shall include--
``(1) the continuum of care submission described in
subsection (b)(3);
``(2) certifications or other such forms of proof of
commitments of financial and other resources sufficient to
comply with the match requirements under section 405(a)(1);
``(3) a certification that the applicant is following a
current approved consolidated plan;
``(4) a certification that the grant will be conducted and
administered in conformity with title VI of the Civil Rights
Act of 1964, section 504 of the Rehabilitation Act of 1973, and
the Fair Housing Act, and the grantee will affirmatively
further fair housing; and
``(5) a certification that the State and State recipients
will comply with the requirements of this title and other
applicable laws.
``(e) Application Approval.--The application shall be approved by
the Secretary unless the Secretary determines that the application is
substantially incomplete.
``SEC. 404. ELIGIBLE PROJECTS AND ACTIVITIES; CONTINUUM OF CARE
APPROVAL.
``(a) Eligible Projects.--Grants under this title may be used to
carry out activities described in subsection (b) in support of the
following types of projects:
``(1) Emergency assistance.--Assistance designed to prevent
homelessness or to meet the emergency needs of homeless
individuals and families, including 1 or more of the following:
``(A) Prevention.--Efforts to prevent homelessness
of a very low-income individual or family that has
received an eviction notice, notice of mortgage
foreclosure, or notice of termination of utilities,
if--
``(i) the individual or family cannot make
the required payments due to a sudden reduction
in income or other financial emergency; and
``(ii) the assistance is necessary to avoid
imminent eviction, foreclosure, or termination
of services.
``(B) Outreach and assessment.--Efforts designed to
inform individuals and families about the availability
of services, to bring them into the continuum of care
system, and to determine which services or housing are
appropriate to the needs of the individual or family.
``(C) Emergency shelter.--The provision of short-
term emergency shelter with essential supportive
services for homeless individuals and families.
``(2) Safe haven housing.--A structure or a clearly
identifiable portion of a structure that--
``(A) provides housing and low-demand services and
referrals for homeless individuals with serious mental
illness--
``(i) who are currently residing primarily
in places not designed for, or ordinarily used
as, a regular sleeping accommodation for human
beings; and
``(ii) who have been unwilling or unable to
participate in mental health or substance abuse
treatment programs or to receive other
supportive services; except that a person whose
sole impairment is substance abuse shall not be
considered an eligible person;
``(B) provides 24-hour residence for eligible
individuals who may reside for an unspecified duration;
``(C) provides private or semiprivate
accommodations;
``(D) may provide for the common use of kitchen
facilities, dining rooms, and bathrooms;
``(E) may provide supportive services to eligible
persons who are not residents on a drop-in basis;
``(F) provides occupancy limited to not more than
25 persons; and
``(G) provides housing for victims of spousal
abuse, and their dependents.
``(3) Transitional housing.--Housing and appropriate
supportive services that are designed to facilitate the
movement of homeless individuals to permanent housing,
generally within 24 months.
``(4) Permanent housing and permanent housing and
supportive services for persons with disabilities.--Permanent
housing for homeless individuals, and permanent housing and
supportive services for homeless persons with disabilities, the
latter of which may be designed to provide housing and services
solely for persons with disabilities, or may provide housing
for such persons in a multifamily housing, condominium, or
cooperative project.
``(5) Single room occupancy housing.--A unit for occupancy
by 1 person, which need not (but may) contain food preparation
or sanitary facilities, or both, and may provide services such
as mental health services, substance abuse treatment, job
training, and employment programs.
``(6) Other projects.--Such other projects as the Secretary
determines will further the purposes of title I of the
Homelessness Assistance and Management Reform Act of 1997.
``(b) Eligible Activities.--Grants under this title may be used to
carry out the following activities in support of projects described in
subsection (a):
``(1) Homelessness prevention activities.--Short-term
mortgage, rental, and utilities payments and other short-term
assistance designed to prevent the imminent homelessness of the
individuals and families described in subsection (a)(1)(A).
``(2) Outreach and assessment.--Drop-in centers, 24-hour
hotlines, counselors, and other activities designed to engage
homeless individuals and families, bring them into the
continuum of care system, and determine their individual
housing and service needs.
``(3) Acquisition and rehabilitation.--The acquisition,
rehabilitation, or acquisition and rehabilitation of real
property.
``(4) New construction.--The new construction of a project,
including the cost of the site.
``(5) Operating costs.--The costs of operating a project,
including salaries and benefits, maintenance, insurance,
utilities, replacement reserve accounts, and furnishings.
``(6) Leasing.--Leasing of an existing structure or
structures, or units within these structures, including the
provision of long-term rental assistance contracts.
``(7) Tenant assistance.--The provision of security or
utility deposits, rent, or utility payments for the first month
of residence at a new location, and relocation assistance.
``(8) Supportive services.--The provision of essential
supportive services including case management, housing
counseling, job training and placement, primary health care,
mental health services, substance abuse treatment, child care,
transportation, emergency food and clothing, family violence
services, education services, moving services, assistance in
obtaining entitlement benefits, and referral to veterans
services and referral to legal services.
``(9) Administration.--
``(A) In general.--Expenses incurred in--
``(i) planning, developing, and
establishing a program under this title; and
``(ii) administering the program.
``(B) Limitations.--Not more than the following
amounts may be used for administrative costs under
subparagraph (A):
``(i) 10 percent of any grant amounts
provided for a recipient for a fiscal year
(including amounts used by a State to carry out
its own activities under section 408(c)(1)(A)).
``(ii) 5 percent of any grant amounts
provided to a State for a fiscal year that the
State uses to distribute funds to a State
recipient under section 408(c)(1)(B).
``(10) Capacity building.--
``(A) In general.--Building the capacity of private
nonprofit organizations to participate in the continuum
of care system of the recipient.
``(B) Limitations.--Not more than the following
amounts may be used for capacity building under
subparagraph (A):
``(i) 2 percent of any grant amounts
provided for a recipient for a fiscal year
(including amounts used by a State to carry out
its own activities under section 408(c)(1)(A)).
``(ii) 2 percent of any grant amounts
provided to a State for a fiscal year that the
State uses to distribute funds to a State
recipient under section 408(c)(1)(B).
``(11) Other activities.--Other activities as the Secretary
determines will further the purposes of title I of the
Homelessness Assistance and Management Reform Act of 1997.
``(c) Targeting to Subpopulations of Persons With Disabilities.--
Notwithstanding any other provision of law, projects for persons with
disabilities assisted under this title may be targeted to specific
subpopulations of such persons, including persons who--
``(1) are seriously mentally ill;
``(2) have chronic problems with drugs, alcohol, or both;
or
``(3) have acquired immunodeficiency syndrome or any
conditions arising from the etiologic agency for acquired
immunodeficiency syndrome.
``SEC. 405. MATCHING REQUIREMENT AND MAINTENANCE OF EFFORT.
``(a) Matching Requirement.--
``(1) In general.--Each recipient shall make contributions
totaling not less than $1 for every $3 made available for the
recipient for any fiscal year under this title to carry out
eligible activities. At the end of each program year, each
recipient shall certify to the Secretary that it has complied
with this section, and shall include with the certification a
description of the sources and amounts of the matching
contributions. Contributions under this section may not come
from assistance provided under this title.
``(2) Calculation of amounts.--In calculating the amount of
matching contributions required under paragraph (1), a
recipient may include--
``(A) any funds derived from a source, other than
assistance under this title or amounts subject to
subsection (b);
``(B) the value of any lease on a building; and
``(C) any salary paid to staff or any volunteer
labor contributed to carry out the program.
``(b) Limitation on Use of Funds.--No assistance received under
this title may be used to replace other funds previously used, or
designated for use, by the State, State recipient (except when a State
recipient is a private nonprofit organization), allocation unit of
general local government or insular area to assist homeless individuals
and families.
``SEC. 406. RESPONSIBILITIES OF RECIPIENTS, PROJECT SPONSORS, AND
OWNERS.
``(a) Use of Assistance Through Private Nonprofit Organizations.--
``(1) In general.--Each recipient shall ensure that at
least 50 percent of the grant amounts that are made available
to it under this title for any fiscal year are made available
to project sponsors that are private nonprofit organizations.
``(2) Waiver.--The Secretary may waive or reduce the
requirement of paragraph (1), if the recipient demonstrates to
the Secretary that the requirement interferes with the ability
of the recipient to provide assistance under this title because
of the paucity of qualified private nonprofit organizations in
the jurisdiction of the recipient.
``(b) Housing Quality.--Each recipient shall ensure that housing
assisted with grant amounts provided under this title is decent, safe,
and sanitary and complies with all applicable State and local housing
codes, building codes, and licensing requirements in the jurisdiction
in which the housing is located.
``(c) Prevention of Undue Benefit.--The Secretary may prescribe
such terms and conditions as the Secretary considers necessary to
prevent project sponsors from unduly benefiting from the sale or other
disposition of projects, other than a sale or other disposition
resulting in the use of the project for the direct benefit of very low-
income families.
``(d) Confidentiality.--Each recipient shall develop and implement
procedures to ensure the confidentiality of records pertaining to any
individual provided services assisted under this title for family
violence prevention or treatment or for such medical or other
conditions as the Secretary may prescribe, and to ensure that the
address or location of any project providing such services will, except
with written authorization of the person or persons responsible for the
operation of such project, not be made public.
``(e) Employment of Homeless Individuals.--
``(1) In general.--To the maximum extent practicable, the
Secretary shall ensure that recipients, through employment,
volunteer services, or otherwise, provide opportunities for
homeless individuals and families to participate in--
``(A) constructing, renovating, maintaining, and
operating facilities assisted under this title;
``(B) providing services so assisted; and
``(C) providing services for occupants of
facilities so assisted.
``(2) No displacement of employed workers.--In carrying out
paragraph (1), recipients shall not displace employed workers.
``(f) Occupancy Charge.--Any homeless individual or family residing
in a dwelling unit assisted under this title may be required to pay an
occupancy charge in an amount determined by the grantee providing the
assistance, which may not exceed an amount equal to 30 percent of the
adjusted income (as defined in section 3(b) of the United States
Housing Act of 1937 or any other subsequent provision of Federal law
defining the term for purposes of eligibility for, or rental charges
in, public housing) of the individual or family. Occupancy charges paid
may be reserved, in whole or in part, to assist residents in moving to
permanent housing.
``SEC. 407. ALLOCATION AND DISTRIBUTION OF FUNDS.
``(a) Insular Areas.--
``(1) Allocation.--For each fiscal year, the Secretary
shall allocate assistance under this title to insular areas, in
an amount equal to 0.20 percent of the amounts appropriated
under the first sentence of section 402(b).
``(2) Distribution.--The Secretary shall provide for the
distribution of amounts reserved under paragraph (1) for
insular areas pursuant to specific criteria or a distribution
formula prescribed by the Secretary.
``(b) States and Allocation Units of General Local Government.--
``(1) In general.--For each fiscal year, of the amounts
appropriated under the first sentence of section 402(b) that
remain after amounts are reserved for insular areas under
subsection (a), the Secretary shall allocate assistance
according to the formula described in paragraph (2).
``(2) Formula.--
``(A) Allocation.--The Secretary shall allocate
amounts for allocation units of general local
government and States, in a manner that ensures that
the percentage of the total amount available under this
title for any fiscal year for any allocation unit of
general local government or State is equal to the
percentage of the total amount available for section
106 of the Housing and Community Development Act of
1974 for the same fiscal year that is allocated for the
allocation unit of general local government or State.
``(B) Minimum allocation.--
``(i) Graduated minimum grant
allocations.--A State, metropolitan city, or
urban county shall receive no less funding in
the first fiscal year after the effective date
of this Act than 90 percent of the average of
the amounts awarded annually to that
jurisdiction for homeless assistance programs
administered by the Secretary under this title
during fiscal years 1996 through 1999, not less
than 85 percent in the second full fiscal year
after the effective date of this Act, not less
than 80 percent in the third and fourth fiscal
years after the effective date of this Act, and
not less than 75 percent in the fifth full
fiscal year after the effective date of this
Act, but only if the amount appropriated in
each such fiscal year exceeds $1,000,000,000.
If that amount does not exceed $1,000,000,000
in any fiscal year referred to in the first
sentence of this paragraph, the jurisdiction
may receive its proportionate share of the
amount appropriated which may be less than the
amount in such sentence for such fiscal year.
``(ii) Reduction.--In any fiscal year, the
Secretary may provide a grant under this
subsection for a State, metropolitan city, or
urban county, in an amount less than the amount
allocated under those paragraphs, if the
Secretary determines that the jurisdiction has
failed to comply with requirements of this
title, or that such action is otherwise
appropriate.
``(C) Study; submission of information to congress
related to alternative methods of allocation.--Not
later than 1 year after the effective date of the Local
Housing Opportunities Act, the Secretary shall--
``(i) submit to Congress--
``(I) the best available
methodology for determining a formula
relative to the geographic allocation
of funds under this subtitle among
entitlement communities and
nonentitlement areas based on the
incidence of homelessness and factors
that lead to homelessness;
``(II) proposed alternatives to the
formula submitted pursuant to subclause
(I) for allocating funds under this
section, including an evaluation and
recommendation on a 75/25 percent
formula and other allocations of
flexible block grant homeless
assistance between metropolitan cities
and urban counties and States under
subparagraph (A);
``(III) an analysis of the
deficiencies in the current allocation
formula described in section 106(b) of
the Housing and Community Development
Act of 1974;
``(IV) an analysis of the adequacy
of current indices used as proxies for
measuring homelessness; and
``(V) an analysis of the bases
underlying each of the proposed
allocation methods;
``(ii) perform the duties required by this
paragraph in ongoing consultation with--
``(I) the Subcommittee on Housing
Opportunity and Community Development
of the Committee on Banking, Housing,
and Urban Affairs of the Senate;
``(II) the Subcommittee on Housing
and Community Opportunity of the
Committee on Banking and Financial
Services of the House of
Representatives;
``(III) organizations representing
States, metropolitan cities, and urban
counties;
``(IV) organizations representing
rural communities;
``(V) organizations representing
veterans;
``(VI) organizations representing
persons with disabilities;
``(VII) members of the academic
community; and
``(VIII) national homelessness
advocacy groups; and
``(iii) estimate the amount of funds that will be
received annually by each entitlement community and
nonentitlement area under each such alternative
allocation system and compare such amounts to the
amount of funds received by each entitlement community
and nonentitlement area in prior years under this
section.
``SEC. 408. ADMINISTRATION OF PROGRAM.
``(a) In General.--The Secretary shall prescribe such procedures
and requirements as the Secretary deems appropriate for administering
grant amounts under this title.
``(b) Allocation Units of General Local Government and Insular
Areas.--
``(1) In general.--Except as provided in paragraph (2), an
allocation unit of general local government or insular area
shall administer grant amounts received under subsection (a) or
(b) of section 407 for any fiscal year.
``(2) Agencies and organizations designated by
jurisdiction.--
``(A) Designation of other entities to administer
grant amounts.--An allocation unit of general local
government or insular area may elect for any fiscal
year to designate a public agency or a private
nonprofit organization (or a collaboration of such
organizations) to administer grant amounts received
under subsection (a) or (b) of section 407 instead of
the jurisdiction.
``(B) Provision of grant amounts.--The Secretary
may, at the request of a jurisdiction under
subparagraph (A), provide grant amounts directly to the
agency or organization designated under that
subparagraph.
``(c) States.--
``(1) In general.--The State--
``(A) may use not more than 15 percent of the
amount made available to the State under section
407(b)(2) for a fiscal year to carry out its own
homeless assistance program under this title; and
``(B) shall distribute the remaining amounts to
State recipients.
``(2) Distribution of amounts to state recipients.--
``(A) In general.--
``(i) Options.--States distributing amounts
under paragraph (1)(B) to State recipients that
are units of general local government shall,
for each fiscal year, afford each such
recipient the options of--
``(I) administering the grant
amounts on its own behalf;
``(II) designating (as provided by
subsection (b)(2)) a public agency or a
private nonprofit organization (or a
combination of such organizations) to
administer the grant amounts instead of
the jurisdiction; or
``(III) entering into an agreement
with the State, in consultation with
private nonprofit organizations
providing assistance to homeless
individuals and families in the
jurisdiction, under which the State
will administer the grant amounts
instead of the jurisdiction.
``(ii) Effect of designation.--A State
recipient designating an agency or organization
as provided by clause (i)(II), or entering into
an agreement with the State under clause
(i)(III), shall remain the State recipient for
purposes of this title.
``(iii) Direct assistance.--The State may,
at the request of the State recipient, provide
grant amounts directly to the agency or
organization designated under clause (i)(II).
``(B) Application.--
``(i) In general.--The State shall
distribute amounts to State recipients (or to
agencies or organizations designated under
subparagraph (A)(i)(II), as appropriate) on the
basis of an application containing such
information as the State may prescribe, except
that each application shall reflect the State
application requirements in section 403(d) and
evidence an intent to facilitate the
establishment of a continuum of care system.
``(ii) Waiver.--The State may waive the
requirements in clause (i) with respect to 1 or
more proposed activities, if the State
determines that--
``(I) the activities are necessary
to meet the needs of homeless
individuals and families within the
jurisdiction; and
``(II) a continuum of care system
is not necessary, due to the nature and
extent of homelessness in the
jurisdiction.
``(C) Preference.--In selecting State recipients
and making awards under subparagraph (B), the State
shall give preference to applications that demonstrate
higher relative levels of homeless need and fiscal
distress.
``SEC. 409. CITIZEN PARTICIPATION.
``(a) In General.--Each recipient shall ensure that citizens,
appropriate private nonprofit organizations, and other interested
groups and entities participate fully in the development and carrying
out of the program authorized under this title.
``(b) Allocation Units of General Local Government and Insular
Areas.--The chief executive officer of each allocation unit of general
local government or insular area shall designate an entity, which shall
assist the jurisdiction--
``(1) by developing the continuum of care system and other
submission requirements, and by submitting the system and such
other submission requirements for its approval under section
403(b);
``(2) in overseeing the activities carried out with
assistance under this title; and
``(3) in preparing the performance report under section
410(b).
``(c) State Recipients.--The chief executive officer of the State
shall designate an entity which shall assist the State--
``(1) by developing the continuum of care system and other
submission requirements, and by submitting the system and such
other submission requirements for its approval under section
403(b);
``(2) in determining the percentage of the grant that the
State should use--
``(A) to carry out its own homeless assistance
program under section 408(c)(1)(A); or
``(B) to distribute amounts to State recipients
under section 408(c)(1)(B);
``(3) in carrying out the responsibilities of the State, if
the State enters into an agreement with a State recipient to
administer the amounts of the State recipient under section
408(c)(2)(A)(i)(III);
``(4) in overseeing the activities carried out with
assistance under this title; and
``(5) in preparing the performance report under section
410(b).
``SEC. 410. PERFORMANCE REPORTS, REVIEWS, AUDITS, AND GRANT
ADJUSTMENTS.
``(a) National Performance Measures and Benchmarks.--The Secretary
shall establish national performance measures and benchmarks to assist
the Secretary, grantees, citizens, and others in assessing the use of
funds made available under this title.
``(b) Grantee Performance and Evaluation Report.--
``(1) In general.--Each grantee shall submit to the
Secretary a performance and evaluation report concerning the
use of funds made available under this title.
``(2) Timing and contents.--The report under subsection (a)
shall be submitted at such time as the Secretary shall
prescribe and contain an assessment of the performance of the
grantee as measured against any specific performance measures
and benchmarks (developed under section 403), the national
performance measures and benchmarks (as established under
subsection (a)), and such other information as the Secretary
shall prescribe. Such performance measures and benchmarks shall
include a measure of the number of homeless individuals who
transition to self-sufficiency, and a measure of the number of
homeless individuals who have ended a chemical dependency or
drug addiction.
``(3) Availability to public.--Before the submission of a
report under subsection (a), the grantee shall make the report
available to citizens, public agencies, and other interested
parties in the jurisdiction of the grantee in sufficient time
to permit them to comment on the report before submission.
``(c) Performance Reviews, Audits, and Grant Adjustments.--
``(1) Performance reviews and audits.--The Secretary shall,
not less than annually, make such reviews and audits as may be
necessary or appropriate to determine--
``(A) in the case of a grantee (other than a
grantee referred to in subparagraph (B)), whether the
grantee--
``(i) has carried out its activities in a
timely manner;
``(ii) has made progress toward
implementing the continuum of care system in
conformity with its application under this
title; and
``(iii) has carried out its activities and
certifications in accordance with the
requirements of this title and other applicable
laws; and
``(B) in the case of States distributing grant
amounts to State recipients, whether the State--
``(i) has distributed amounts to State
recipients in a timely manner and in
conformance with the method of distribution
described in its application;
``(ii) has carried out its activities and
certifications in compliance with the
requirements of this title and other applicable
laws; and
``(iii) has made such performance reviews
and audits of the State recipients as may be
necessary or appropriate to determine whether
they have satisfied the applicable performance
criteria set forth in subparagraph (A).
``(2) Grant adjustments.--The Secretary may make
appropriate adjustments in the amount of grants in accordance
with the findings of the Secretary under this subsection. With
respect to assistance made available for State recipients, the
Secretary may adjust, reduce, or withdraw such assistance, or
take other action as appropriate in accordance with the
performance reviews and audits of the Secretary under this
subsection, except that amounts already properly expended on
eligible activities under this title shall not be recaptured or
deducted from future assistance to such recipients.
``SEC. 411. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.
``No person in the United States shall, on the ground of race,
color, national origin, religion, or sex, be excluded from
participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity funded in whole or in part
with funds made available under this title. Any prohibition against
discrimination on the basis of age under the Age Discrimination Act of
1975 or with respect to an otherwise qualified individual with a
disability, as provided in section 504 of the Rehabilitation Act of
1973, shall also apply to any such program or activity.
``SEC. 412. RETENTION OF RECORDS, REPORTS, AND AUDITS.
``(a) Retention of Records.--Each recipient shall keep such records
as may be reasonably necessary--
``(1) to disclose the amounts and the disposition of the
grant amounts, including the types of activities funded and the
nature of populations served with these funds; and
``(2) to ensure compliance with the requirements of this
title.
``(b) Access to Documents by the Secretary.--The Secretary shall
have access for the purpose of audit and examination to any books,
documents, papers, and records of any recipient that are pertinent to
grant amounts received in connection with this title.
``(c) Access to Documents by the Comptroller General.--The
Comptroller General of the United States, or any duly authorized
representative of the Comptroller General, shall have access for the
purpose of audit and examination to any books, documents, papers, and
records of any recipient that are pertinent to grant amounts received
in connection with this title.''.
SEC. 303. REPEAL AND SAVINGS PROVISIONS.
(a) Authority To Provide Assistance.--Beginning on the effective
date of this Act, the Secretary may not make assistance available under
title IV of the Stewart B. McKinney Homeless Assistance Act (as in
existence immediately before such effective date), except pursuant to a
legally binding commitment entered into before that date.
(b) Law Governing.--Any amounts made available under title IV of
the Stewart B. McKinney Homeless Assistance Act before the effective
date of this Act shall continue to be governed by the provisions of
that title, as they existed immediately before that effective date,
except that each grantee may, in its discretion, provide for the use,
in accordance with the provisions of title IV of the Stewart B.
McKinney Homeless Assistance Act (as amended by this title), of any
such amounts that it has not obligated.
(c) Status of Funds.--
(1) In general.--Any amounts appropriated under title IV of
the Stewart B. McKinney Homeless Assistance Act before the
effective date of this Act that are available for obligation
immediately before such effective date, or that become available for
obligation on or after that date, shall be transferred and added to
amounts appropriated for title IV of the Stewart B. McKinney Homeless
Assistance Act (as amended by this title), and shall be available for
use in accordance with the provisions of such title IV.
(2) Availability.--Any amounts transferred under paragraph
(1) shall remain available for obligation only for the time
periods for which such respective amounts were available before
such transfer.
SEC. 304. IMPLEMENTATION.
(a) Initial Allocation of Assistance.--Not later than the
expiration of the 60-day period following the date of enactment of an
Act appropriating funds to carry out title IV of the Stewart B.
McKinney Homeless Assistance Act (as amended by this title), the
Secretary shall notify each allocation unit of general local
government, insular area, and State of its allocation under the
McKinney Homeless Assistance Performance Fund.
(b) Issuance of Necessary Regulations.--Notwithstanding section
7(o) of the Department of Housing and Urban Development Act (42 U.S.C.
3535(o)), the Secretary shall issue such regulations as may be
necessary to implement any provision of title I of this Act, and any
amendment made by this title, in accordance with section 552 or 553 of
title 5, United States Code, as determined by the Secretary.
(c) Use of Existing Rules.--In implementing any provision of this
title, the Secretary may, in the discretion of the Secretary, provide
for the use of existing rules to the extent appropriate, without the
need for further rulemaking.
TITLE IV--RURAL HOUSING
SEC. 401. MUTUAL AND SELF-HELP HOUSING TECHNICAL ASSISTANCE AND
TRAINING GRANTS AUTHORIZATION.
Section 513(b) of the Housing Act of 1949 (42 U.S.C. 1483(b)) is
amended by striking paragraph (8) and inserting the following:
``(8) For grants under paragraphs (1)(A) and (2) of section
523(b)--
``(A) $40,000,000 for fiscal year 2001;
``(B) $45,000,000 for fiscal year 2002; and
``(C) $50,000,000 for fiscal year 2003.''.
SEC. 402. ENHANCEMENT OF THE RURAL HOUSING REPAIR LOAN PROGRAM FOR THE
ELDERLY.
Section 504(a) of the Housing Act of 1949 (42 U.S.C. 1474(a)) is
amended by striking ``$2,500'' and inserting ``$7,500''.
SEC. 403. ENHANCEMENT OF EFFICIENCY OF RURAL HOUSING PRESERVATION
GRANTS.
Section 533 of the Housing Act of 1949 (42 U.S.C. 1490m) is
amended--
(1) by striking subsection (c);
(2) in subsection (d)(3)(H), by striking ``(e)(1)(B)(iv)''
and inserting ``(d)(1)(B)(iv)''; and
(3) by redesignating subsections (d) through (i) as
subsections (c) through (h), respectively.
SEC. 404. PROJECT ACCOUNTING RECORDS AND PRACTICES.
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended
by striking subsection (z) and inserting the following:
``(z) Accounting and Recordkeeping Requirements.--
``(1) Accounting standards.--The Secretary shall require
that borrowers in programs authorized by this section maintain
accounting records in accordance with generally accepted
accounting principles for all projects that receive funds from
loans made or guaranteed by the Secretary under this section.
``(2) Record retention requirements.--The Secretary shall
require that borrowers in programs authorized by this section
retain for a period of not less than 6 years and make available
to the Secretary in a manner determined by the Secretary, all
records required to be maintained under this subsection and
other records identified by the Secretary in applicable
regulations.
``(aa) Double Damage Remedy for Unauthorized Use of Housing
Projects Assets and Income.--
``(1) Action to recover assets or income.--
``(A) In general.--The Secretary may request the
Attorney General to bring an action in a district court
of the United States to recover any assets or income
used by any person in violation of the provisions of a
loan made or guaranteed by the Secretary under this
section or in violation of any applicable statute or
regulation.
``(B) Improper documentation.--For purposes of this
subsection, a use of assets or income in violation of
the applicable loan, loan guarantee, statute, or
regulation shall include any use for which the
documentation in the books and accounts does not
establish that the use was made for a reasonable
operating expense or necessary repair of the project or
for which the documentation has not been maintained in
accordance with the requirements of the Secretary and
in reasonable condition for proper audit.
``(C) Definition of person.--In this subsection,
the term `person' means--
``(i) any individual or entity that borrows
funds in accordance with programs authorized by
this section;
``(ii) any individual or entity holding 25
percent or more interest of any entity that
borrows funds in accordance with programs
authorized by this section; or
``(iii) any officer, director, or partner
of an entity that borrows funds in accordance
with programs authorized by this section.
``(2) Amount recoverable.--
``(A) In general.--In any judgment favorable to the
United States entered under this subsection, the
Attorney General may recover double the value of the
assets and income of the project that the court
determines to have been used in violation of the
provisions of a loan made or guaranteed by the
Secretary under this section or any applicable statute
or regulation, plus all costs related to the action,
including reasonable attorney and auditing fees.
``(B) Application of recovered funds.--
Notwithstanding any other provision of law, the
Secretary may apply any recovery of funds under this
subsection to activities authorized under this section
and such funds shall remain available until expended.
``(3) Time limitation.--Notwithstanding any other statute
of limitations, the Attorney General may bring an action under
this subsection at any time up to and including 6 years after
the date that the Secretary discovered or should have
discovered the violation of the provisions of this section or
any related statutes or regulations.
``(4) Continued availability of other remedies.--The remedy
provided in this subsection is in addition to and not in
substitution of any other remedies available to the Secretary
or the United States.''.
SEC. 405. OPERATING ASSISTANCE FOR MIGRANT FARM WORKER PROJECTS.
Section 521(a)(5)(A) of the Housing Act of 1949 (42 U.S.C.
1490a(a)(5)(A)) is amended in the last sentence by striking ``project''
and inserting ``tenant or unit''.
TITLE V--VOUCHER REFORM
SEC. 501. AUTHORIZATION OF APPROPRIATIONS FOR RENTAL VOUCHERS FOR
RELOCATION OF WITNESSES AND VICTIMS OF CRIME.
Section 8(o)(16) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)(16)) is amended--
(1) in subparagraph (A), by striking ``Of amounts made
available for assistance under this subsection'' and inserting
``Of the amount made available under subparagraph (C)'';
(2) in subparagraph (B), by striking ``Of amounts made
available for assistance under this section'' and inserting
``Of the amount made available under subparagraph (C)''; and
(3) by adding at the end the following:
``(C) Authorization of appropriations.--In addition
to amounts made available to carry out this section for
each fiscal year, there is authorized to be
appropriated to carry out this paragraph $25,000,000
for each fiscal year.''.
SEC. 502. REVISIONS TO THE LEASE ADDENDUM.
Section 8(o)(7)(F) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)(7)(F)) is amended striking the period at the end and
inserting the following: ``, except that--
``(i) the provisions of any such addendum
shall supplement any existing standard rental
agreement to the extent that the addendum does
not modify, nullify, or in any way materially
alter any material provision of the rental
agreement; and
``(ii) a provision of the addendum shall be
nullified only to extent that the provision
conflicts with applicable State or local
law.''.
SEC. 503. REPORT REGARDING HOUSING VOUCHER PROGRAM.
(a) In General.--The Secretary shall publish in the Federal
Register a notice soliciting comments and recommendations regarding the
means by which the voucher program under section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)) may be changed and
enhanced to promote increased participation by private rental housing
owners.
(b) Report.--Not later than 6 months after the effective date of
this Act, the Secretary shall submit to the Committees a report on the
results of the solicitation under subsection (a), which shall include a
summary and analysis of the recommendations received, especially
recommendations regarding legislative and administrative changes to the
program described in subsection (a).
SEC. 504. CONDUCTING QUALITY STANDARD INSPECTIONS ON A PROPERTY BASIS
RATHER THAN A UNIT BASIS.
Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)(8)) is amended--
(1) in the paragraph heading, by inserting ``and
properties'' after ``units'';
(2) in subparagraph (A)--
(A) by striking ``Except as provided'' and
inserting the following:
``(i) Inspection requirement.--Except as
provided''; and
(B) by adding at the end the following:
``(ii) Inspection and certification on a
property-wide basis.--
``(I) In general.--For purposes of
this subparagraph, each owner shall
have the option of having the property
of the owner inspected and certified on
a property-wide basis, subject to the
inspection guidelines set forth in
subparagraphs (C) and (D).
``(II) Certification.--Owners of
properties electing a property-wide
inspection and not currently receiving
tenant-based assistance for any
dwelling unit in those properties may
elect a property-wide certification by
having each dwelling unit that is to be
made available for tenant-based
assistance inspected before any housing
assistance payments are made. Any owner
participating in the voucher program
under this subsection as of the
effective date of Local Housing
Opportunities Act shall have the option
of electing property-wide certification
by sending written notice to the
appropriate administering agency. Any
property that is inspected and
certified on a property-wide basis
shall not be required to have units in
the property inspected individually in
conjunction with each new rental
agreement.'';
(3) in subparagraph (C)--
(A) in the first sentence--
(i) by inserting ``or property'' after
``dwelling unit''; and
(ii) by inserting ``or property'' after
``the unit''; and
(B) in the second sentence, by inserting ``or
properties'' after ``dwelling units''; and
(4) in subparagraph (D), in the first sentence--
(A) by inserting ``or property'' after ``dwelling
unit'';
(B) by inserting ``or property'' after ``payments
contract for the unit''; and
(C) by inserting ``or property'' after ``whether
the unit''.
TITLE VI--PROGRAM MODERNIZATION
SEC. 601. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.
(a) Reauthorization.--Section 11 of the Housing Opportunity Program
Extension Act of 1996 (42 U.S.C. 12805 note) is amended by striking
subsection (p) and inserting the following:
``(p) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $25,000,000 for fiscal year 2001
and such sums as may be necessary for each of fiscal years 2002 and
2003.''.
(b) Eligible Expenses.--Section 11(d)(2)(A) of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is
amended by inserting before the period at the end the following: ``,
which may include reimbursing an organization, consortium, or
affiliate, upon approval of any required environmental review, for
nongrant amounts of the organization, consortium, or affiliate advanced
before such review to acquire land''.
(c) Deadline for Recapture of Funds.--Section 11 of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is
amended--
(1) in subsection (i)(5)--
(A) by striking ``if the organization or consortia
has not used any grant amounts'' and inserting ``the
Secretary shall recapture any grant amounts provided to
the organization or consortia that are not used'';
(B) by striking ``(or,'' and inserting ``, except
that such period shall be 36 months''; and
(C) by striking ``within 36 months), the Secretary
shall recapture such unused amounts'' and inserting
``and in the case of a grant amounts provided to a
local affiliate of the organization or consortia that
is developing 5 or more dwellings in connection with
such grant amounts''; and
(2) in subsection (j), by inserting ``and grant amounts
provided to a local affiliate of the organization or consortia
that is developing 5 or more dwellings in connection with such
grant amounts'' before the period at the end.
(d) Technical Correction.--Section 11(e) of the Housing Opportunity
Program Extension Act of 1996 (42 U.S.C. 12805 note) is amended by
striking ``consoria'' and inserting ``consortia''.
SEC. 602. LOCAL CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND
AFFORDABLE HOUSING.
Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816
note) is amended--
(1) in subsection (a), by inserting ``National Association
of Housing Partnerships,'' after ``Humanity,''; and
(2) in subsection (e), by striking ``$25,000,000'' and all
that follows before the period and inserting ``to carry out
this section, $40,000,000 for each of fiscal years 2001 through
2003''.
SEC. 603. WORK REQUIREMENT FOR PUBLIC HOUSING RESIDENTS: COORDINATION
OF FEDERAL HOUSING ASSISTANCE WITH STATE WELFARE REFORM
WORK PROGRAMS.
(a) In General.--Title I of the United States Housing Act of 1937
(42 U.S.C. 1437 et seq.) is amended by adding at the end the following:
``SEC. 36. WORK REQUIREMENT.
``(a) In General.--Each family residing in public housing, shall
comply with the requirements of section 407 of the Social Security Act
(42 U.S.C. 607) in the same manner and to the same extent as a family
receiving assistance under a State program funded under part A of title
IV of that Act (42 U.S.C. 601 et seq.).
``(b) Work Requirements.--
``(1) Annual determinations.--
``(A) Requirement.--For each family residing in
public housing that is subject to the requirement under
subsection (a), the public housing agency shall, 30
days before the expiration of each lease term of the
family under section 6(l)(1), review and determine the
compliance of the family with the requirement under
subsection (a) of this subsection.
``(B) Due process.--Each determination under
subparagraph (A) shall be made in accordance with the
principles of due process and on a nondiscriminatory
basis.
``(C) Noncompliance.-- If a public housing agency
determines that a family subject to the requirement
under subsection (a) has not complied with the
requirement, the agency--
``(i) shall notify the family--
``(I) of such noncompliance;
``(II) that the determination of
noncompliance is subject to the
administrative grievance procedure
under subsection (k); and
``(III) that, unless the family
enters into an agreement under clause
(ii) of this subparagraph, the family's
lease will not be renewed; and
``(ii) may not renew or extend the family's
lease upon expiration of the lease term and
shall take such action as is necessary to
terminate the tenancy of the household, unless
the agency enters into an agreement, before the
expiration of the lease term, with the family
providing for the family to cure any
noncompliance with the requirement under
paragraph (1), by participating in an economic
self-sufficiency program (as defined in section
12(g)) for or contributing to community service
as many additional hours as the family needs to
comply in the aggregate with such requirement
over the 12-month term of the lease.
``(2) Ineligibility for occupancy for noncompliance.--A
public housing agency may not renew or extend any lease, or
provide any new lease, for a dwelling unit in public housing
for any family who was subject to the requirement under
subsection (a) and failed to comply with the requirement.
``(3) Inclusion in plan.--Each public housing agency shall
include in its public housing agency plan a detailed
description of the manner in which the agency intends to
implement and administer this subsection.''.
(b) Conforming Amendment.--Section 12(c) of the United States
Housing Act of 1937 (42 U.S.C. 1437j(c)) is repealed.
SEC. 604. SIMPLIFIED FHA DOWNPAYMENT CALCULATION.
Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) is
amended--
(1) in paragraph (2), by striking subparagraph (B) and all
that follows through ``applicability of this requirement.'' and
inserting the following:
``(B) not to exceed an amount equal to--
``(i) 98.75 percent of the appraised value
of the property, if such value is equal to or
less than $50,000;
``(ii) 97.65 percent of the appraised value
of the property, if such value is in excess of
$50,000 but not in excess of $125,000;
``(iii) 97.15 percent of the appraised
value of the property, if such value is in
excess of $125,000; or
``(iv) notwithstanding clauses (ii) and
(iii), 97.75 percent of the appraised value of
the property, if such value is in excess of
$50,000 and the property is in a State for
which the average closing cost exceeds 2.10
percent of the average, for the State, of the
sales price of properties located in the State
for which mortgages have been executed, as
determined by the Secretary, except that, in
this clause, the term `average closing cost'
means, with respect to a State, the average,
for mortgages executed for properties in the
State, of the total amounts (as determined by
the Secretary) of initial service charges,
appraisal, inspection, and other fees and costs
(as the Secretary shall approve) that are paid
in connection with such mortgages.''; and
(2) by striking paragraph (10).
SEC. 605. FLEXIBLE USE OF CDBG FUNDS.
Section 105(a)(23) of the Housing and Community Development Act of
1974 (42 U.S.C. 5305(a)(23)) is amended by striking ``housing units
acquired'' and all that follows before the semicolon and inserting the
following: ``housing (A) acquired through tax foreclosure proceedings
brought by a unit of State or local government, or (B) placed under the
supervision of a court for the purpose of remedying conditions
dangerous to life, health, and safety, in order to prevent the
abandonment and deterioration of such housing primarily in low- and
moderate-income neighborhoods''.
SEC. 606. USE OF SECTION 8 ASSISTANCE IN GRANDFAMILY HOUSING ASSISTED
WITH HOME FUNDS.
Section 215(a) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12745(a)) is amended by adding at the end the following:
``(6) Waiver of qualifying rent.--
``(A) In general.--For the purpose of providing
affordable housing appropriate for families described
in subparagraph (B), the Secretary may, upon the
application of the project owner, waive the
applicability of paragraph (1)(A) with respect to a
dwelling unit if--
``(i) the unit is occupied by such a
family, on whose behalf tenant-based assistance
is provided under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f);
``(ii) the rent for the unit is not greater
than the existing fair market rent for
comparable units in the area, as established by
the Secretary under section 8 of the United
States Housing Act of 1937; and
``(iii) the Secretary determines that the
waiver, together with waivers under this
paragraph for other dwelling units in the
project, will result in the use of amounts
described in clause (iii) in an effective
manner that will improve the provision of
affordable housing for such families.
``(B) Eligible families.--A family described in
this subparagraph is a family that consists of at least
1 elderly person (who is the head of household) and 1
or more of such person's grandchildren, great
grandchildren, great nieces, great nephews, or great
great grandchildren (as defined by the Secretary), but
does not include any parent of such grandchildren,
great grandchildren, great nieces, great nephews, or
great great grandchildren. Such term includes any such
grandchildren, great grandchildren, great nieces, great
nephews, or great great grandchildren who have been
legally adopted by such elderly person.''.
SEC. 607. SECTION 8 HOMEOWNERSHIP OPTION DOWNPAYMENT ASSISTANCE.
(a) Amendments.--Section 8(y) of the United States Housing Act of
1937 (42 U.S.C. 1437f(y)) is amended--
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6) the following:
``(7) Downpayment assistance.--
``(A) Authority.--A public housing agency may, in
lieu of providing monthly assistance payments under
this subsection on behalf of a family eligible for such
assistance and at the discretion of the public housing
agency, provide assistance for the family in the form
of a single grant to be used only as a contribution
toward the downpayment required in connection with the
purchase of a dwelling for fiscal year 2001 and each
fiscal year thereafter to the extent provided in
advance in appropriations Acts.
``(B) Amount.--The amount of a downpayment grant on
behalf of an assisted family may not exceed the amount
that is equal to the sum of the assistance payments
that would be made during the first year of assistance
on behalf of the family, based upon the income of the
family at the time the grant is to be made.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect immediately after the amendments made by section 555(c) of
the Quality Housing and Work Responsibility Act of 1998 take effect
pursuant to such section.
SEC. 608. REAUTHORIZATION OF NEIGHBORHOOD REINVESTMENT CORPORATION.
Section 608(a)(1) of the Neighborhood Reinvestment Corporation Act
(42 U.S.C. 8107(a)(1)) is amended by striking the first sentence and
inserting the following: ``There is authorized to be appropriated to
the corporation to carry out this title $90,000,000 for fiscal year
2001, $95,000,000 for fiscal year 2002, and $95,000,000 for fiscal year
2003.''.
TITLE VII--STATE HOUSING BLOCK GRANT
SEC. 701. STATE CONTROL OF PUBLIC AND ASSISTED HOUSING FUNDS.
Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) is amended by adding at the end the following:
``SEC. 37. STATE HOUSING BLOCK GRANT.
``(a) Purpose.--The purpose of this section is to create options
for States and to provide maximum freedom to States to determine the
manner in which to implement assisted housing reforms.
``(b) Authority.--Notwithstanding any other provision of law, a
State may assume control of the Federal housing assistance funds
available to residents in that State following the execution of a
performance agreement with the Secretary in accordance with this
section.
``(c) Performance Agreement.--
``(1) In general.--A State may, at its option, execute a
performance agreement with the Secretary under which the
provisions of law described in subsection (d) shall not apply
to such State, except as otherwise provided in this section.
``(2) Approval of performance agreement.--A performance
agreement submitted to the Secretary under this section shall
be approved by the Secretary unless the Secretary makes a
written determination, within 60 days after receiving the
performance agreement, that the performance agreement is in
violation of the provisions of this section.
``(3) Terms of performance agreement.--Each performance
agreement executed pursuant to this section shall include each
of the following provisions:
``(A) Term.--A statement that the term of the
performance agreement shall be 5 years.
``(B) Application of program requirements.--A
statement that no program requirements of any program
included by the State in the performance agreement
shall apply, except as otherwise provided in this Act.
``(C) List.--A list provided by the State of the
programs that the State would like to include in the
performance agreement.
``(D) Use of funds to improve housing opportunities
for low-income individuals and families.--Include a 5-
year plan describing the manner in which the State
intends to combine and use the funds for programs
included in the performance agreement to advance the
low-income housing priorities of the State, improve the
quality of low-income housing, reduce homelessness,
reduce crime, and encourage self-sufficiency by
achieving the performance goals.
``(E) Performance goals.--
``(i) In general.--A statement of
performance goals established by the State for
the 5-year term of the performance agreement
that, at a minimum measures--
``(I) improvement in housing
conditions for low-income individuals
and families;
``(II) the increase in the number
of assisted units that pass housing
quality inspections;
``(III) the increase in economic
opportunity and self-sufficiency and
increases the number of residents that
obtain employment;
``(IV) the reduction in crime and
assistance to victims of crime;
``(V) the reduction in homelessness
and the level of poverty;
``(VI) the cost of assisted housing
units provided;
``(VII) the level of assistance
provided to people with disabilities
and to the elderly;
``(VIII) the success in maintaining
and increasing the stock of affordable
housing and increasing home-ownership;
and
``(IX) numerical goals to attain
for each performance goal by the end of
the performance agreement.
``(ii) Additional indicators of
performance.--A State may identify in the
performance agreement any indicators of
performance such as reduced cost.
``(F) Fiscal responsibilities.--An assurance that
the State will use fiscal control and fund accounting
procedures that will ensure proper disbursement of, and
accounting for, Federal funds paid to the State or
community under this Act. Recipients will use Generally
Accepted Accounting Principles (GAAP).
``(G) Civil rights.--An assurance that the State
will meet the requirements of applicable Federal civil
rights laws including section 25(k).
``(H) State financial participation.--An assurance
that the State will not significantly reduce the level
of spending of State funds for housing during the term
of the performance agreement.
``(I) Annual report.--An assurance that not later
than 1 year after the execution of the performance
agreement, and annually thereafter, each State shall
disseminate widely to the general public, submit to the
Secretary, and post on the Internet, a report that
includes low-income housing performance data and a
detailed description of the manner in which the State
has used Federal funds to provide low-income housing
assistance to meet the terms of the performance
agreement.
``(4) Amendment to performance agreement.--A State may
submit an amendment to the performance agreement to the
Secretary under the following circumstances:
``(A) Reduce scope of performance agreement.--Not
later than 1 year after the execution of the
performance agreement, a State may amend the
performance agreement through a request to withdraw a
program from such agreement. Upon approval by the
Secretary of the amendment, the requirements of
existing law shall apply for any program withdrawn from
the performance agreement.
``(B) Expand scope of performance agreement.--Not
later than 1 year after the execution of the
performance agreement, a State may amend its
performance agreement to include additional programs
and performance indicators for which it will be held
accountable.
``(d) Eligible Programs.--
``(1) In general.--The provisions of law referred to in
subsection (c), are--
``(A) the voucher program for rental assistance
under section 8(o) of the United States Housing Act of
1937;
``(B) the programs for project-based assistance
under section 8 of the United States Housing Act of
1937;
``(C) the program for housing for the elderly under
section 202 of the Housing Act of 1959;
``(D) the program for housing for persons with
disabilities under section 811 of the Cranston-Gonzales
National Affordable Housing Act; and
``(2) Allocation amounts.--A State may choose to combine
funds from any or all the programs described in paragraph (1)
without regard to the program requirements of such provisions,
except as otherwise provided in this Act.
``(3) Uses of funds.--Funds made available under this
section to a State shall be used for any housing purpose other
than those prohibited by State law of the participating State.
``(e) Within-State Distribution of Funds.--The distribution of
funds from programs included in the performance agreement from a State
to a local housing agency within the State shall be determined by the
State legislature and the Governor of the State. In a State in which
the State constitution or State law designates another individual,
entity, or agency to be responsible for housing, such other individual,
entity, or agency shall work in consultation with the Governor and
State legislature to determine the local distribution of funds.
``(f) Set-Aside for State Administrative Expenditures.--A State may
use not more than 3 percent of the total amount of funds allocated to
such State under the programs included in the performance agreement for
administrative purposes.
``(g) Level of Block Grant.--
``(1) In general.--During the initial 5 years following
execution of the performance agreement, a participating State
shall receive the highest level of funding for the 3 years
prior to the first year of the performance agreement in each
program included in the block grant. This level will be
adjusted each year by multiplying the prior year's amount by
the cost-of-living adjustment determined under section 1(f)(3)
of the Internal Revenue Code of 1986.
``(2) Formula.--Six months after the effective date of the
Local Housing Opportunities Act, the Secretary shall submit to
Congress recommendations for a block grant formula that
reflects the relative low-income level and affordable housing
needs of each State.
``(h) Performance Review.--
``(1) In general.--If at the end of the 5-year term of the
performance agreement a State has failed to meet at least 80
percent of the performance goals submitted in the performance
agreement, the Secretary shall terminate the performance
agreement and the State shall be required to comply with the
program requirement, in effect at the time of termination, of
each program included in the performance agreement.
``(2) Renewal.--A State that seeks to renew its performance
agreement shall notify the Secretary of its renewal request not
less that 6 months prior to the end of the term of the
performance agreement. A State that has met at least 80 percent
of its performance goals submitted in the performance agreement
at the end of the 5-year term may reapply to the Secretary to
renew its performance agreement for an additional 5-year
period. Upon the completion of the 5-year term of the
performance agreement or as soon thereafter as the State
submits data required under the agreement, the Secretary shall
renew, for an additional 5-year term, the performance agreement
of any State or community that has met at least 80 percent of
its performance goals.
``(i) Performance Reward Fund.--To reward States that make
significant progress in meeting performance goals, the Secretary shall
annually set aside sufficient funds to grant a reward of up to 5
percent of the funds allocated to participating States.
``(j) Definitions.--In this section:
``(1) Community.--The term `community' means any local
governing jurisdiction within a State.
``(2) Secretary.--The term `Secretary' means the Secretary
of Housing and Urban Development.
``(3) State.--The term `State' means each of the 50 States,
the District of Columbia, the Commonwealth of Puerto Rico,
Guam, the United States Virgin Islands, the Commonwealth of the
Northern Mariana Islands, and American Samoa.''.
TITLE VIII--PRIVATE SECTOR INCENTIVES
SEC. 801. SENSE OF CONGRESS REGARDING LOW-INCOME HOUSING TAX CREDIT
STATE CEILINGS AND PRIVATE ACTIVITY BOND CAPS.
(a) Findings.--Congress finds that--
(1) the low-income housing tax credit and private activity
bonds have been valuable resources in the effort to increase
affordable housing;
(2) the low-income housing tax credit and private activity
bonds effectively utilize the ability of the States to deliver
resources to the areas of greatest need within their
jurisdictions; and
(3) the value of the low-income housing tax credit and the
private activity bonds have been eroded by inflation.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the State ceiling for the low-income housing tax credit
should be increased by 40 percent in the year 2000, and the
level for the State ceiling should be adjusted annually to
account for increases in the cost of living; and
(2) the private activity bond cap should be increased by 50
percent in the year 2000, and the value of the cap should be
adjusted annually to account for increases in the cost of
living.
TITLE IX--ENFORCEMENT
SEC. 901. PROHIBITION ON USE OF APPROPRIATED FUNDS FOR LOBBYING BY THE
DEPARTMENT.
(a) In General.--Subchapter III of chapter 13 of title 31, United
States Code, is amended by adding at the end the following:
``Sec. 1354. Prohibition on lobbying by the Department of Housing and
Urban Development
``(a) Prohibition.--Except as provided in subsection (b), unless
such activity has been specifically authorized by an Act of Congress
and notwithstanding any other provision of law, no funds made available
to the Department of Housing and Urban Development by appropriation
shall be used by such agency for any activity (including the
preparation, publication, distribution, or use of any kit, pamphlet,
booklet, public presentation, news release, radio, television, or film
presentation, video, or other written or oral statement) that in any
way tends to promote public support or opposition to any legislative
proposal (including the confirmation of the nomination of a public
official or the ratification of a treaty) on which congressional action
is not complete.
``(b) Exceptions.--
``(1) President and vice president.--Subsection (a) shall
not apply to the President or Vice President.
``(2) Congressional communications.--Subsection (a) shall
not be construed to prevent any officer or employee of the
Department of Housing and Urban Development from--
``(A) communicating directly to a Member of
Congress (or to any staff of a Member or committee of
Congress) a request for legislation or appropriations
that such officer or employee deems necessary for the
efficient conduct of the public business; or
``(B) responding to a request for information or
technical assistance made by a Member of Congress (or
by any staff of a Member or committee of Congress).
``(3) Public communications on views of president.--
``(A) In general.--Subsection (a) shall not be
construed to prevent any Federal agency official whose
appointment is confirmed by the Senate, any official in
the Executive Office of the President directly
appointed by the President or Vice President, or the
head of any Federal agency described in subsection
(e)(2), from communicating with the public, through
radio, television, or other public communication media,
on the views of the President for or against any
pending legislative proposal.
``(B) Nondelegation.--Subparagraph (A) does not
permit any Federal agency official described in that
subparagraph to delegate to another person the
authority to make communications subject to the
exemption provided by that subparagraph.
``(c) Comptroller General.--
``(1) Assistance of inspector general.--In exercising the
authority provided in section 712, as applied to this section,
the Comptroller General may obtain, without reimbursement from
the Comptroller General, the assistance of the Inspector
General within the Department of Housing and Urban Development
when any activity prohibited by subsection (a) of this section
is under review.
``(2) Evaluation.--One year after the date of enactment of
this section, the Comptroller General shall report to the
Committee on Banking and Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on the implementation of this
section.
``(3) Annual report.--The Comptroller General shall, in the
annual report under section 719(a), include summaries of
investigations undertaken by the Comptroller General with
respect to subsection (a).
``(d) Penalties and Injunctions.--
``(1) Penalties.--
``(A) In general.--The Attorney General may bring a
civil action in the appropriate district court of the
United States against any person who engages in conduct
constituting an offense under this section, whether
such offense is due to personal participation in any
activity prohibited in subsection (a) or improper
delegation to another person the authority to make
exempt communications in violation of subsection
(b)(3), and, upon proof of such conduct by a
preponderance of the evidence, such person shall be
subject to a civil penalty of not less than $5,000 and
not more than $10,000 for each violation.
``(B) Other remedies not precluded.--The imposition
of a civil penalty under this subsection does not
preclude any other criminal or civil statutory, common
law, or administrative remedy, which is available by
law to the United States or any other person.
``(2) Injunctions.--
``(A) In general.--If the Attorney General has
reason to believe that a person is engaging in conduct
constituting an offense under this section, whether
such offense is due to personal participation in any
activity prohibited in subsection (a) or improper
delegation to another person the authority to make
exempt communications in violation of subsection
(b)(3)--
``(i) the Attorney General may petition an
appropriate district court of the United States
for an order prohibiting that person from
engaging in such conduct; and
``(ii) the court may issue an order
prohibiting that person from engaging in such
conduct if the court finds that the conduct
constitutes such an offense.
``(B) Other remedies not precluded.--The filing of
a petition under this section does not preclude any
other remedy which is available by law to the United
States or any other person.
``(e) Definition.--In this section, the term `Federal agency'
means--
``(1) any executive agency, within the meaning of section
105 of title 5; and
``(2) any private corporation created by a law of the
United States for which the Congress appropriates funds.''.
(b) Conforming Amendment.--The table of sections for chapter 13 of
title 31, United States Code, is amended by inserting after the item
relating to section 1353 the following:
``1354. Prohibition on lobbying by the Department of Housing and Urban
Development.''.
(c) Applicability.--The amendments made by this section shall apply
to the use of funds after the effective date of this Act, including
funds appropriated or received on or before that date.
SEC. 902. REGULATIONS.
Not later than 6 months after the date of enactment of this Act,
the Secretary shall issue such regulations as may be necessary to carry
out this Act and the amendments made by this Act.
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