Bill summaries are authored by CRS.

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Reported to House amended (06/29/1988)

(Reported to House from the Committee on Banking, Finance and Urban Affairs with amendment, H. Rept. 100-741)

McKinney Housing and Shelter for the Homeless Reauthorization Act of 1988 - Title I: General Provisions - Amends the Stewart B. McKinney Homeless Assistance Act to require the General Accounting Office to submit to the Congress annual audits and summaries of the housing and shelter programs under such Act. (Current law requires audits to be submitted quarterly and annually.)

Title II: Interagency Council on the Homeless - Includes among the duties of the Interagency Council on the Homeless the preparation and distribution of a bimonthly bulletin summarizing Federal homeless assistance.

Authorizes FY 1989 and 1990 appropriations for the Council.

Extends the Council's legislative authority through October 1, 1990.

Title III: Federal Emergency Management Food and Shelter Program - Requires the Emergency Food and Shelter Program National Board to utilize data on long-term unemployed workers in establishing program guidelines.

Authorizes FY 1989 and 1990 appropriations for the Federal emergency management food and shelter program.

Title IV: Housing Assistance - Requires: (1) annual submission of comprehensive homeless assistance plans to the Secretary of Housing and Urban Development; and (2) submission by States and metropolitan cities or urban counties of copies of such plans to each other.

Requires such plans to: (1) provide a coordinating contact person or agency; and (2) include recipient assurances to maintain illegal drug and alcohol abuse-free facilities.

Permits States to contract directly with private nonprofit organizations under the emergency shelter grant program with the approval of the appropriate local government.

Requires projects which receive funding for essential services or maintenance and operation to be used as shelters for the full assistance period.

Authorizes FY 1989 and 1990 appropriations for the emergency shelter grants program.

Authorizes supportive housing demonstration program funds to be used for operating and technical assistance without regard to whether the proposed project involves a new or existing structure.

Allows project sponsors (currently the Secretary) to determine the maximum length of stay of homeless persons in transitional housing projects.

Increases the maximum number of residents in permanent housing for handicapped homeless projects from eight persons to 12 persons.

Considers debt repayment on a loan made to purchase an existing structure for the homeless as an acquisition cost eligible for advance payment assistance. Reduces from ten years to five years the length of time that recipients must operate such projects in order not to have to repay the full advance. Increases the amount of advance forgiveness for use in excess of five years (currently ten years) from ten percent to 20 percent.

Requires program applicants to document site control within 12 months of receiving project assistance. Gives selection priority to projects with documented site control.

Considers staff salaries and the value of volunteer time as matching funds under the supportive housing demonstration program.

Makes the report for such program an annual requirement.

Authorizes FY 1989 and 1990 program appropriations and permits fund reallocation.

Authorizes FY 1989 and 1990 appropriations for supplemental assistance for facilities to assist the homeless. Permits the use of such funds for operating expenses.

Increases FY 1989 and 1990 budget authority for section 8 assistance for single room occupancy dwellings. Repeals related cost limitation provisions.

Requires the Secretary to report to the Congress, within 12 months of enactment of this Act, regarding the impact of local housing rent controls on urban homelessness. Includes among the specific requirements of such report: (1) a listing of the localities having such controls; (2) an evaluation of such controls' impact on lower income housing, including Federal subsidized housing; (3) an evaluation of such controls' impact on commercial and nonrental housing development; (4) an evaluation of local officials' enforcement and administration of such codes; and (5) a comparison with other localities that have not instituted such controls on the supply, development, and affordability of rental housing.

Title V: Identification and Use of Surplus Federal Property - Requires the Secretary to identify buildings that are suitable for use by the homeless within two months after collecting information about underutilized Federal properties.

Title VI: Technical and Conforming Amendments to Housing and Community Development Act of 1987 - Subtitle A: Housing Assistance - Amends the United States Housing Act of 1937, with regard to income eligibility for assisted housing, to require the Secretary to establish an appropriate percentage of lower income families other than very low-income families that may receive such housing assistance. Prohibits owners from skipping persons on the waiting list in order to select higher income families.

Prohibits the Secretary from reducing section 8 rents for projects involving new construction or substantial or moderate rehabilitation that were in effect as of April 14, 1987, unless the project has been refinanced in a manner that reduces the owner's payments. Requires: (1) the restoration of any rents reduced between such date and the date of enactment of this Act; and (2) assistance payments by the Secretary to an affected owner.

States that as of FY 1989 assistance payments under the housing voucher program shall be adjusted annually. (Current authority is discretionary.)

Amends the Housing and Urban Development Act of 1968 to authorize housing counseling services to owners of single family homes guaranteed or insured by the Veterans Administration.

Amends the Housing and Community Development Amendments of 1978, regarding multifamily housing projects, to require the Secretary to provide the State housing agency and the local government with the right of first refusal upon approval of a prospective purchaser's disposition plan that reflects the project's fair market value. (Current law requires such notification upon receipt of a bona fide purchase offer.)

Amends the definition of "subsidized project" for purposes of such multifamily housing projects to exclude: (1) section 8 vouchers or certificates; and (2) other section 8 assistance or specified assistance under the United States Housing Act of 1937 made to 50 percent or fewer of a project's units.

Directs the Secretary to use not less than a specified sum for multifamily housing capital improvements assistance. (Current law permits the Secretary to use not more than such sum.)

Subtitle B: Preservation of Low Income Housing - Amends the Housing and Community Development Act of 1987 to require an owner of certain low-income housing to submit his intent to prepay a mortgage and his plan of action for such prepayment to the tenants. Requires tenant consultation prior to plan approval.

Provides incentives to extend low-income use only when low-income restrictions are extended through the mortgage term.

Includes a limit on the amount of rent increases among the criteria necessary for approval of a plan of action.

Subtitle C: Rural Housing - Amends the Housing Act of 1949 to repeal the provision limiting rent increases in the low-income rural rental housing program.

Makes farm labor housing available for other low-income families in areas where there is no longer a need for farm labor housing.

Subtitle D: Mortgage Insurance and Secondary Mortgage Market Programs - Amends the National Housing Act to permit an investor to refinance an insured single family mortgage if monthly mortgage payments are reduced (thus exempting such investor from certain occupancy requirements).

States, with regard to procedures applicable to assumption of insured mortgages under the National Housing Act, that: (1) credit reviews shall be made starting from the date on which the mortgage is executed (currently from the date of enactment); and (2) sets December 1, 1986, as the date for applicability of specified assumption requirements under the Housing and Community Development Act of 1987.

Repeals the requirement that a mortgage under the home equity conversion demonstration program (for elderly homeowners) be secured by a dwelling whose mortgage value does not exceed specified single family mortgage insurance limits.

Amends the Housing Act of 1949 to direct the Secretary to: (1) accept Veterans Administration certificates of reasonable value for one or more properties in a subdivision as administrative approval for the entire subdivision for a one-year period beginning on the date of enactment of this Act; and (2) before the end of such period report to the Congress regarding housing subdivision approval practices of the Veterans Administration and the Departments of Agriculture and Housing and Urban Development (HUD).

Makes permanent the authority of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation to purchase multifamily second mortgages.

Subtitle E: Community Development and Miscellaneous Programs - Amends the Housing and Community Development Act of 1974 to repeal the provision requiring HUD to use 1980 census data to determine loss of entitlement status for metropolitan cities and urban counties.

Provides, with regard to the antidisplacement certification, that: (1) a local government unit receiving community development assistance or urban development action grants under such Act from a state shall make such certification to the State; and (2) a local government unit receiving such assistance from HUD shall make such certification to the Secretary.

Permits the use of community development block grant funds to pay the assessments required of low and moderate income homeowners to recover the capital cost of public improvements.

Makes technical amendments to the following programs: (1) urban development action grants; (2) the Neighborhood Reinvestment Corporation; (3) national flood control; and (4) home mortgage disclosure.

Title VII: Education, Training, and Community Services Program - Amends the Stewart B. McKinney Homeless Assistance Act to authorize FY 1989 and 1990 appropriations for the following programs for the homeless: (1) adult education; (2) education for children and youth; (3) exemplary grants and information dissemination; (4) job training; and (5) emergency community services.

Requires the Coordinator of Education of Homeless Children and Youth annually to: (1) gather data on homeless children and youth; and (2) report to the Secretary of Education. (This eliminates the current law requirement of an interim and final report.)

Makes the job training for the homeless ratable reduction provisions permanent.

Authorizes emergency community services homeless grants for persons facing foreclosure, eviction, or termination of utilities if: (1) the person's inability to make such payments is due to an income reduction; (2) assistance is necessary to avoid foreclosure, eviction, or termination of utilities; and (3) there is a reasonable prospect of payment resumption. Makes up to 25 percent of such grants available for the near homeless. Requires States to award such grants within 60 days of receipt.

Amends the Child Nutrition Act of 1966 to make homeless women, infants, and children eligible for the special supplemental food program (WIC).