Summary: S.825 — 100th Congress (1987-1988)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Senate agreed to House amendment with amendment (12/21/1987)

(Senate agreed to House amendments with an amendment)

Housing and Community Development Act of 1987 - Title I: Housing Assistance - Subtitle A: Programs Under United States Housing Act of 1937 - Part I: General Provisions - Amends the United States Housing Act of 1937 to increase FY 1988 and 1989 budget authority for lower income housing programs. Sets forth FY 1988 and 1989 budget amounts for the following programs: (1) public housing, including Indian housing; (2) comprehensive improvement assistance program; (3) elderly and handicapped program; (4) moderate rehabilitation program; (5) loan management program; (6) property disposition program; and (7) section 8 certificate and voucher programs.

Permits public housing agencies (PHAs) to establish three-year rent limitations. Exempts housing administered by an Indian PHA from such provision.

Directs the Comptroller General to report to the Congress by October 30, 1988, regarding public housing utility allowances.

Directs the Secretary of Housing and Urban Development (Secretary) to establish different income eligibility limitations for different assisted housing programs, provided that such limitations when aggregated achieve the requirement that 95 percent of such housing go to very low-income households. Waives such aggregate percentage: (1) if necessary to avoid rental displacement; and (2) with regard to Indian housing.

Part 2: Public Housing - Amends the United States Housing Act of 1937 to authorize PHAs to admit persons between 50 years old and 62 years old (near elderly) into elderly public housing when there is an insufficient number of elderly persons for such units.

Authorizes grants for public housing and Indian housing construction and development.

Limits, as of October 1, 1987, the financing of new public housing units to PHAs that can certify: (1) that 85 percent of their existing units are maintained in compliance with section 8 quality standards, or will be in such condition upon completion; (2) that the construction will replace disposed of or demolished units, or is required by court order or by the Secretary; and (3) that demands for family housing exceed rental assistance program capacity.

Prohibits the Secretary from recapturing public housing reservation funds for 30 months following the date of reservation, due to the failure of a PHA to complete acquisition and begin construction or rehabilitation. Permits a PHA to make site or project changes during such period as long as such changes will not result in fewer units acquired, constructed, or rehabilitated. Extends such period for delays caused by: (1) the Secretary; (2) environmental review; (3) legal action; or (4) factors beyond the PHA's control.

Prohibits the Secretary from using as a criterion for distributing public housing development funds an Indian PHA's rent collection improvement, unless it is one of several other selection criteria.

Authorizes Department of Housing and Urban Development (HUD) new construction in the neighborhood where the PHA determines such housing is needed.

Authorizes grants for public housing child care. Requires the Secretary to report to the Congress within three years of enactment of this Act. Authorizes FY 1988 and 1989 appropriations.

Directs the Secretary to provide payments for operating lower income housing projects through a performance funding system that establishes standards for operating costs and income projections. Authorizes FY 1988 and 1989 appropriations.

Authorizes grants for comprehensive improvement assistance.

Revises the conditions of approval for project demolition applications to include requirements of: (1) one-for-one replacement unless there is no local need for low-income housing; (2) tenant relocation payment; and (3) section 8-based or alternative-based subsidies if other necessary funding is unavailable.

Permits public housing residents to form resident management corporations. Requires such corporations to obtain fidelity bonding and insurance and have their records audited annually. Authorizes such projects to receive comprehensive improvement assistance. Provides for: (1) retention of excess revenues; and (2) resident management technical assistance and training. Limits financial assistance to: (1) $100,000 for any particular project; and (2) $2,500,000 for the total program for each of FY 1988 and 1989. Requires the Secretary to submit a program report to the Congress within three years of enactment of this Act.

Provides lower income public housing residents with the opportunity to purchase project dwelling units through a qualifying resident management corporation.

Requires, as conditions for resident ownership, that: (1) a resident management corporation be formed; (2) the corporation has entered into a contract with the PHA; and (3) the corporation has demonstrated its managerial ability for at least three years.

Authorizes the Secretary to provide comprehensive improvement assistance to a project undergoing resident ownership activities through FY 1989.

Sets forth purchase conditions, including: (1) PHA public hearings; (2) safety and livability determinations; and (3) PHA certification of sold unit replacement if justified by local low-income housing needs.

Sets forth resale conditions, including: (1) permitted resale only to the resident management corporation, PHA, or other eligible low-income family; and (2) family priorities.

Requires that sale or recapture proceeds be used only to increase the number of available units.

Permits PHA financing if no other source is available. Sets the interest rate at not less than 70 percent of the conventional mortgage rate.

Requires HUD to continue to pay annual assistance to the project. Eliminates operating subsidies for a purchased building.

Sets forth the following protection for nonpurchasing families: (1) eviction prohibition; (2) tenants' rights; and (3) rental and relocation assistance.

Directs the Secretary to: (1) provide PHAs with the necessary financial assistance to carry out such ownership program; and (2) report annually to the Congress.

Forgives interest on a public housing development project for the Housing Authority of the City of Pittsburgh, Pennsylvania.

Forgives certain penalties incurred with the public housing development grant for the Bay City Housing Commission, Michigan.

Authorizes specified funds from FY 1988 public housing development budget authority to build and test a variety of public housing energy efficient housing designs in 100 separate housing units in four different States.

Establishes a public housing comprehensive transition demonstration program in Charlotte, North Carolina (authorizes up to ten additional program sites) to demonstrate the effectiveness of providing comprehensive services to public housing tenants to ensure their transition to private housing. Sets up such program with a two-year remediation phase and a five-year transition phase (including a full-time employment requirement). Requires the Secretary to submit an interim and final report to the Congress. Terminates such program seven years after enactment of this Act.

Part 3: Section 8 Assistance and Other Programs - Amends the United States Housing Act of 1937 to require section 8 annual contribution contracts for existing housing to provide for a specific number of certificates and vouchers over a specified period.

Requires annual October 1 adjustments of section 8 fair market rentals. Requires separate fair market rentals for Westchester County in the State of New York.

Prohibits the reduction of certain section 8 contract rents unless the project has been refinanced in a manner that reduces the debt of the owner.

Repeals the requirement that section 8 rent increases be based only on increased operating costs.

Authorizes annual housing voucher adjustments. Authorizes unlimited voucher use for cooperative or mutual housing. Authorizes the Secretary to set aside up to five percent of authorized voucher funds for an annual adjustment pool to be used to maintain continued housing affordability.

Sets forth administrative fee provisions for section 8 certificate and voucher programs.

Provides for the portability of section 8 certificates and vouchers if the dwelling unit is within the same or contiguous metropolitan statistical area as the unit from which the family moved.

Prohibits PHAs from denying section 8 certificates and vouchers to public housing residents.

Prohibits private owners with section 8-assisted multifamily housing projects (at least five units) from refusing to lease any available dwelling units at the fair market rental to a section 8 certificate or voucher holder.

Permits PHAs to use up to 15 percent of section 8 assistance for project-based assistance.

Provides section 8 assistance for: (1) physically-displaced residents of rental rehabilitation projects; and (2) at the discretion of the local government, residents of such projects whose post-rehabilitation rent would exceed 30 percent of their adjusted monthly income.

Authorizes FY 1988 and 1989 appropriations for: (1) rental rehabilitation grants; and (2) development grants. Sets rehabilitation grant limits at: (1) $5,000 per efficiency unit; (2) $6,500 for one bedroom units; (3) $7,500 for two bedroom units; and (4) $8,500 for three or more bedroom units. Permits such grants to be used for seismic standards compliance where applicable.

States that development grant eligibility requirements shall be those that were in effect as of October 17, 1986.

Terminates the rental development grant program as of October 1, 1989.

Subtitle B: Other Housing Assistance Programs - Amends the Housing Act of 1959 to authorize FY 1988 and 1989 appropriations for elderly and handicapped housing loans. Bases interest rates on the most recently issued 30-year Treasury obligations.

Amends the Housing and Urban-Rural Recovery Act of 1983 to limit interest rates on elderly and handicapped housing loans to 9.25 percent. (Currently such limit applies only to FY 1983 and 1984 loans). Requires the Secretary to notify a project sponsor at least 30 days prior to loan cancellation. Permits sponsor appeals. Gives loan priority through FY 1988 to projects providing replacement housing for 100-unit or more projects used for the elderly and scheduled for demolition.

Requires that at least 15 percent of annual appropriations, beginning in FY 1988, for elderly or handicapped housing be allocated for handicapped families' housing. Directs the Secretary to establish new housing and related services for nonelderly handicapped families.

Terminates section 8 assistance in handicapped projects where contract funds are appropriated under the housing for handicapped families program.

Amends the Congregate Housing Services Act of 1978 to authorize appropriations for congregate services through FY 1989. Directs the Secretary to contract for a report due to the Congress by September 30, 1989, which will: (1) document the number of elderly persons living in federally assisted housing at risk of institutionalization; (2) compare alternative congregate services delivery systems; and (3) assess the availability of Federal, State, and local financial support.

Amends the Housing and Community Development Act of 1980 to exempt from HUD regulations limiting alien eligibility for public housing alien families whose head or spouse is a citizen, legal alien resident, or alien undergoing legalization. Exempts persons 62 years or older from related documentation requirements. Requires the Secretary to provide written notice and a hearing opportunity before denying or terminating assistance. Directs HUD to: (1) develop a system for verifying immigration status; and (2) reimburse PHAs for such related costs. Exempts State and local government from liability for the design and implementation of the Federal alien verification system if the implementation is in accordance with Federal regulations.

Authorizes the Secretary to require HUD program participants or applicants to disclose their social security or employer identification numbers.

Directs the Secretary to include in his annual section 8 report a report on the characteristics of families assisted under specified housing programs.

Amends the National Housing Act to increase Federal funding from 90 percent to 100 percent for State-financed rental assistance. Amends the Housing and Urban Development Act of 1965 to provide similar increases for supplemental rental assistance payments.

Amends the Housing and Urban Development Act of 1968 to: (1) authorize FY 1988 and 1989 appropriations for housing counseling; and (2) authorize grants, and FY 1988 and 1989 appropriations, for homeownership counseling organizations.

Subtitle C: Multifamily Housing Management and Preservation - Amends the Housing and Community Development Amendments of 1978 to require the Secretary to manage or dispose of HUD-owned multifamily housing projects in a manner consistent with specified goals, including as an objective the preservation of affordable low- and moderate-income housing. Brings within the framework of the Secretary's authority HUD-owned multifamily housing projects subject to a HUD-owned mortgage that is delinquent, under a workout agreement, or being foreclosed.

Describes HUD's obligations with respect to management services and maintenance in connection with HUD-owned or HUD-controlled multifamily projects. Requires owners of such projects that are not under HUD control to meet the same obligations.

Directs the Secretary to provide financial assistance to owners of multifamily projects acquired at foreclosure or after a HUD sale by providing at least one of the following: (1) project-based section 8 contracts covering 15 years or more; or (2) purchase-money mortgages, a reduced sales price, or other assistance to ensure the availability and affordability of the housing for low-and moderate-income persons for at least 15 years.

Grants to State and local governments the right of first refusal with respect to HUD-owned multifamily projects when HUD receives a bona fide purchase offer.

Applies displacement protection to tenants of multifamily projects controlled by HUD (current provisions cover only HUD-owned projects). Requires owners of non-HUD projects to provide the same protections.

Limits HUD authority to approve the sale of certain projects, loans, and mortgages. Permits negotiated sales of subsidized or formerly subsidized mortgages to agencies of State and local government.

Requires the Secretary to consider as a factor in determining bids on multifamily housing projects the goal of preserving low-income housing.

Broadens specified assisted housing tenant participation provisions.

Establishes a three-year program to demonstrate the effectiveness of disposing of HUD-owned distressed multifamily housing projects through a partnership with State housing finance agencies.

Authorizes the Secretary to make direct loans to assist onwers of multifamily housing in making capital improvements to maintain the projects as decent, safe, and sanitary housing. Establishes in the Treasury a Flexible Subsidy Fund, a revolving fund to finance operating assistance for troubled multifamily housing projects, including capital improvement aid. Limits fiscal year fund expenditures for capital improvements to $50,000,000. Describes conditions to govern capital improvement loans.

Amends the National Housing Act and the Housing and Community Development Amendments of 1978 with respect to flexible subsidies to owners of troubled multifamily housing projects to: (1) permit the Secretary to use certain excess rental charges to assist troubled multifamily housing projects through FY 1989 (current law terminates such authority after September 30, 1985); and (2) expand the program to include certain elderly and handicapped projects.

Title II: Preservation of Low Income Housing - Subtitle A: General Provisions - Emergency Low Income Housing Preservation Act of 1987 - Expresses this title's purposes: (1) the preservation as affordable housing for low-income families privately-owned dwelling units produced with Federal assistance; (2) the minimization of the involuntary displacement of current tenants; and (3) the continuation of the partnership between government and the private sector in the production and operation of affordable low-income housing.

Repeals, two years after enactment of this Act, subtitles relating to: (1) the prepayment of mortgages insured under the National Housing Act; and (2) certain other measures to preserve low income housing.

Subtitle B: Prepayment of Mortgages Insured Under National Act - Permits an owner of eligible low-income housing to prepay a mortgage on such housing only in accordance with a plan approved by the Secretary. Presents required procedures, contents, and approval criteria with respect to the plan of action. Authorizes the Secretary to include incentives to retain or extend low income use.

Permits approval of a plan that entails the termination of the low-income affordability restrictions only upon findings that such action would not have adverse effects on job and housing availability.

Permits approval of a plan that includes incentives only upon findings that the incentives fulfill certain economic criteria and that binding commitments have been made to ensure that specified availability, affordability, maintenance, and rent level standards will be met.

Authorizes the Secretary to approve a practicable statewide strategy presented in a plan offered by a State. Lists criteria.

Allows an owner who has entered into an agreement to extend low-income affordability restrictions to convert to a different system of incentives and restrictions during the four-year period following this Act's enactment.

Amends the National Housing Act to empower the Secretary to insure loans or credit advances made by financial institutions to owners of eligible low-income multifamily housing for the purpose of implementing an approved plan of action. Includes as eligible owners qualified nonprofit organizations and limited equity tenant cooperative corporations. Lists the qualifying characteristics of equity loans for purposes of the progam. Prohibits a mortgage approved by the Secretary form withholding consent to an equity loan on a relevant property.

Sets forth reporting and regulation requirements applicable to this subtitle.

Subtitle C: Rural Rental Housing Displacement Prevention - Amends the Housing Act of 1949 to direct the Secretary, before accepting a borrower's request to prepay a rural housing loan entered into before December 21, 1979, to make reasonable efforts with the borrower to extend such low-income housing use for at least 20 years. Includes the following among the incentives for such agreements: (1) investment rate increases; (2) interest rate reductions; and (3) rental increases.

Provides that if an agreement cannot be reached the Secretary shall require the borrower to offer to sell such housing to a qualified nonprofit organization or public agency.

Directs the Secretary to the extent provided for by appropriations, to provide a purchasing entity with financial assistance in the form of debt forgiveness or monthly payments. Limits subsequent transfers.

Exempts prepayment requests form such restrictions under specified conditions relating to adequate existing stocks of low income housing.

Authorizes appropriations for related reimbursement of the Rural Housing Insurance Fund.

Limits transfers to not more than 5,000 dwelling units per fiscal year.

Subtitle D: Other Measures to Preserve Low Income Housing - Amends the United States Housing Act of 1937 to require: (1) owners to notify the Secretary and the tenants not less than one year prior to terminating a section 8 contract (not less than 90 days in the case of housing certificates or vouchers); (2) the Secretary to review such notice and consider other actions in order to avoid such termination.

Requires 180-month terms for section 8 loan management and property disposition contracts.

Amends the Housing Act of 1949 to permit rural rental housing initial operating reserves to be in the form of irrevocable letters of credit.

Title III: Rural Housing - Amends the Housing Act of 1949 to extend rural housing insurance and guaranty authority through FY 1989. Sets forth specified limits on such authority for FY 1988 and 1989.

Authorizes FY 1988 and 1989 appropriations for: (1) rural housing improvements; (2) structural rehabilitation; (3) the meeting of obligations issued under the rural housing insurance fund; (4) farm labor housing; (5) self-help housing; and (6) housing preservation.

Authorizes the Secretary, subject to FY 1988 and 1989 appropriations, to enter into: (1) rental assistance payment contracts; and (2) five-year supplemental rental assistance contracts.

Extends through FY 1989: (1) rental housing loan authority; and (2) mutual and self-help housing grant and loan authority.

Directs the Secretary of Agriculture, subject to appropriations, to carry out a FY 1988 and 1989 demonstration rural housing voucher program. Funds such program through the Rural Housing Insurance Fund.

Provides that maximum income eligibility levels for Farmers Home Administration (FmHA) housing in the Virgin Islands not be less than maximum levels for other U.S. territories.

Prohibits the Secretary of Agriculture from restricting rural housing assistance to any alien for whom assistance may not be restricted under section 214 (restriction on the use of assisted housing) of the Housing and Community Development Act of 1980.

Provides for rural housing tax and insurance escrow accounts.

Directs the Secretary of Agriculture, subject to appropriations, to carry out a moderate income rural housing guaranteed loan demonstration program. Requires an interim and a final program report to the Congress. Terminates the program as of September 30, 1991.

Amends the Housing Act of 1949 to redefine "domestic farm labor".

Restricts occupancy in rural housing for elderly or handicapped projects to persons whose incomes conform with low-income tax credit eligibility requirements under the Internal Revenue Code, unless the Secretary determines that vacancies threaten the project's financial viability.

Prohibits fees other than late fees on rural rental housing loans.

Extends the 10,000-20,000 population rural area classification date to September 30, 1989. Makes Pajaro, California, eligible for rural area designation.

Directs the Secretary to: (1) carry out a rural rehabilitation demonstration program through FY 1989; and (2) submit a program report to the Congress.

Directs the Secretary to: (1) conduct a study of rural mortgage credit; and (2) report to the Congress by April 1, 1988.

Makes loans for manufactured homes on permanent foundations repayable over the same period as specified mortgaged loans under the National Housing Act.

Title IV: Mortgage Insurance and Secondary Mortgage Market Programs - Subtitle A: FHA Mortgage Insurance Programs - Amends the National Housing Act to extend authority permanently for: (1) general mortgage insurance; (2) low and moderate income and displaced families mortgage insurance; (3) mortgage co-insurance, including rental rehabilitation and development projects; (4) graduated payment and indexed mortgage insurance; (5) mortgage insurance for armed forces civilian employees and defense housing for impacted areas; (6) mortgage insurance for land development; and (7) mortgage insurance for medical and dental group practice facilities.

Terminates the home ownership assistance program on October 1, 1989.

Provides specified amounts for FY 1988 and 1989 Federal Housing Administration (FHA) mortgage insurance commitments.

Limits the mortgage insurance premiums secured by one to four family dwellings to 3.8 percent of the principal obligation.

Increases the maximum single family mortgage amount from 133 1/3 percent to 150 percent of the prevailing home sales price.

Amends the definition of veteran, for specified mortgage insurance purposes, to require that persons who enlisted in the armed forces after September 7, 1980, or who entered active duty after October 16, 1981, shall have their eligibility determined in accordance with specified Federal laws.

Permits the Secretary to insure a mortgage secured by a one- to four-family dwelling, or approve of a substitute mortgagor who assumes any mortgage, only if the mortgagor is to occupy the dwelling as a principal or secondary residence. Excludes certain public and private nonprofit investors from the occupancy requirement.

Specifies certain actions which the Secretary must take to reduce losses under the single family mortgage insurance program.

Extends refinancing insurance authority to cover nursing homes, intermediate care facilities, and board and care homes. Provides that if the State agency is not empowered to certify the need for a nursing home, intermediate care facility, board and care home, or hospital, then the Secretary shall accept in lieu of certification a feasibility study which demonstrates such need.

Requires State approval, or an independent certification of need, for hospital mortgage insurance.

Transfers mortgage insurance programs for Hawaiian homelands and Indian lands from the Mutual Mortgage Insurance Fund to the General Insurance Fund of the Treasury. Permits Native Hawaiians to transfer FHA-financed property to their children or surviving spouses who do not meet the legal definition of native Hawaiians.

Repeals the requirement that the Secretary consult with the mortgage lending industry to determine that co-insurance will not disrupt the mortgage market.

Increases from ten to 30 percent of the aggregate number of insured mortgages and loans for the preceding fiscal year the ceiling on the aggregate number of such insured mortgages and loans for any particular fiscal year.

Raises the fine for equity skimming from $5,000 to $250,000, and the possible prison sentence from a maximum of three years to a maximum of five years. Subjects skimming on cooperatives and condominiums to such penalties. Revises the definition of one kind of equity skimming practice to mean failing to make payments under the mortgage or deed of trust as the payments become due, regardless of whether the purchaser is obligated on the loan.

Authorizes the Secretary to conduct a demonstration progam of insurance of home equity conversion mortgages of elderly homeowners through FY 1991. Limits the total number of such mortgages to 2,500. Requires reports and evaluations to be submitted to the Congress at specified times.

Directs the Secretary to maintain at least one housing office in each State.

Prohibits a lender from requiring a minimum principal loan amount. Directs the Secretary to complete a study, and report to the Congress within six months, concerning lending practices under such Act.

Repeals the provision requiring the publication of certain prototype housing costs.

Provides a double damages remedy for the unauthorized use of multifamily housing project assets and income.

Requires (Federal law currently authorizes) the Secretary to provide mortgages for certain properties within Indian reservations.

Defines "area" for purposes of calculating the FHA maximum mortgage amount as the higher of a county or a metropolitan statistical area established by the Office of Management and Budget.

Permits the use of approved individual residential water purification units if the exiting water supply does not meet HUD standards.

Directs the Secretary to continue to control rents in specified insured projects.

Increases specified multifamily project mortgage limits, including projects in high-cost areas.

Authorizes the Secretary to provide specified operating loss loan insurance programs.

Provides for the release of specified pool funds to be used by State-assisted housing projects under the National Housing Act and the Housing and Urban Development Act of 1965.

Subtitle B: Secondary Mortgage Market Programs - Prohibits (with specified exceptions) fees from being charged on: (1) Federal National Mortgage Association (FNMA) mortgages; and (2) Federal Home Loan Mortgage Corporation (FHLMC) mortgages.

Extends Federal National Mortgage Association and Federal Home Loan Mortgage Corporation mortgage purchase authority permanently.

Authorizes the elimination of the right of cumulative voting in the election of FNMA board members.

Directs the Secretary to act within 45 days (with an allowable 15-day extension) on a FNMA request for approval of an action.

Prohibits the FHLMC Board of Directors from imposing an annual limit on the maximum aggregate principal amount of mortgages purchased by FHLMC.

Sets FY 1988 and 1989 limits on Government National Mortgage Association guarantees of mortgage-backed securities.

Title V: Community Development and Miscellaneous Programs - Subtitle A: Community and Neighborhood Development and Preservation - Amends the Housing and Community Development Act of 1974 to authorize appropriations through FY 1989 for the community development block grant (CDBG) program, including a specified amount for the special discretionary fund.

Makes specified amounts available for existing grant programs to minority graduate and undergraduate students in the areas of community development and planning.

Authorizes appropriations through FY 1989 for the urban development action grant program (UDAG).

Requires at least 60 percent of CDBG appropriations to be used for low and moderate income benefits.

Extends CDBG entitlement authority for certain metropolitan city and urban county areas through FY 1989.

Revises energy use requirements for CDBG purposes.

Repeals the requirement that a CDBG recipient include in the review statement a final project use of funds provision.

Permits CDBG funds to be used for Great Lakes flooding and erosion control to primarily benefit low and moderate income persons.

Requires CDBG grantees to follow a citizen participation plan, including public hearings and technical assistance.

Requires CDBG and UDAG grantees to follow a residential antidisplacement and relocation assistance plan.

Permits CDBG funds to be used to develop and operate for up to two years a uniform emergency telephone number system.

Prohibits a State from deducting administrative expenses from distribution amounts in entitlement areas in excess of the sum of $100,000 ($102,000 under current law) plus 50 percent of a State's administrative expenses above $100,000.

Authorizes FY 1988 and 1989 CDBG loan guarantee limits. Prohibits loan guarantee fees. Includes within the eligible uses of such guarantees housing rehabilitation and certain economic development activities.

Modifies UDAG selection criteria. Requires the Comptroller General to report to the Congress every three years (the first report due within one year of enactment of this Act). Repeals the urban county competition rule as of October 1, 1989. Limits individual project grants to $10,000,000 for FY 1988 and 1989.

Considers the counties of Kauai, Maui, and Hawaii in the State of Hawaii as cities for UDAG purposes.

Prohibits relocating a business from one UDAG area to another unless the Secretary determines that no adverse effect will result.

Authorizes appropriations through FY 1989 for the urban homesteading program. Extends through FY 1989 authority to purchase tax foreclosed properties. Permits State or local governments to transfer property to qualified community organizations for homestead transfers. Extends through FY 1989 the multifamily homesteading demonstration program. Extends the reporting deadline until December 1, 1987.

Cancels specified loan indebtedness under the Housing Act of 1964.

Amends the Neighborhood Reinvestment Corporation Act to authorize appropriations for the Neighborhood Reinvestment Corporation through FY 1989. Modifies the composition of the Neighborhood Reinvestment Corporation Board to permit designated members rather than only the Chairmen of the Home Loan Bank Board, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, to be on such Board.

Amends the Housing and Urban-Rural Recovery Act of 1983 to authorize appropriations for the neighborhood development demonstration program through FY 1989.

Sets aside specified FY 1988 funds: (1) for residents of the Park Central New Community Project; and (2) from the Secretary's CDBG discretionary fund for such project.

Subtitle B: Flood and Crime Insurance Programs - Amends the National Flood Insurance Act of 1968 to extend authority through FY 1989 for national flood insurance, including emergency implementation and flood-risk zones. Limits premium increases to ten percent annually through FY 1989.

Amends the National Housing Act to extend authority through FY 1989 for crime insurance. Continues existing contracts through FY 1990. Limits premium increases to five percent annually through FY 1989.

Authorizes FY 1988 and 1989 appropriations for flood insurance studies.

Makes eligible for flood insurance certain property covered by flood insurance located along a lake shore or other body of water that is subject to imminent collapse due to erosion caused by excessive water levels or waves. Excepts certain property in Suffolk County, New York, from such provisions. Limits payments to commitments made through FY 1989.

Subtitle C: Miscellaneous Programs - Authorizes a fair housing initiatives program. Authorizes FY 1988 and 1989 appropriations. Sets forth program provisions.

Directs the Secretary of Housing and Urban Development and the Secretary of Agriculture to collect at least annually data on the racial and ethnic characteristics of persons eligible for or benefiting under each community development, housing assistance, and mortgage and loan insurance and guarantee program the Secretary administers.

Amends the Housing and Urban Development Act of 1970 to authorize FY 1988 and 1989 appropriations for housing research and development.

Amends the Home Mortgage Disclosure Act of 1975 to make mortgage disclosure authority permanent.

Amends the Lead-Based Paint Prevention Act to require mortgagees to provide purchasers of 1978 or prior constructed homes with lead-based paint information. Directs the National Institute of Building Sciences and HUD to develop such information. Sets forth inspection criteria, including a requirement that all housing subject to inspection be inspected within five years.

Directs the Secretary to: (1) carry out a lead paint abatement demonstration program in HUD housing; and (2) report to the Congress within nine months of completion of such program.

Amends the National Manufactured Housing Construction and Safety Standards Act of 1974 to require HUD manufactured housing construction and safety standards to: (1) include cost effective energy conservation standards; (2) take into consideration design and factory construction techniques; and (3) provide for alternative energy consumption practices.

Amends the National Housing Act to nullify the right of redemption in a foreclosure sale in connection with a HUD-held single-family mortgage.

Directs the Secretary to encourage the use of American products and materials in administering housing assistance.

Directs the National Institute of Building Sciences to: (1) carry out a study of voluntary standards for modular homes; and (2) report to the Congress within six months of enactment of this Act regarding implementing voluntary national codes for modular housing. Obligates specified funds from the Housing and Urban Development Act of 1970 for such purposes.

Title VI: Nehemiah Housing Opportunity Grants - Authorizes the Secretary to make grants to nonprofit organizations for noninterest bearing second mortgages for new or rehabilitated homes.

Sets maximum loans at $15,000. Requires at least a ten percent downpayment. Prohibits leasing. Makes such loans repayable to the Secretary upon the sale, lease, or transfer of the property.

Requires an eligible family to: (1) have an income not in excess of the greater of the local metropolitan median income for a family of four, or the national median income for a family of four; and (2) not have owned a home within three years.

Sets forth criteria for: (1) grant selection; and (2) assistance conditions.

Establishes in the Treasury the Nehemiah Housing Opportunity Fund.

Requires a report to the Congress by March 1, 1990.

Authorizes FY 1988 and 1989 appropriations.

Title VII: Enterprise Zone Development - Authorizes the Secretary to designate up to 100 enterprise zones (to be identified by State and local authorities, or Indian reservation governing bodies) to provide economic revitalization, job creation, and community development.

Requires a specified number of rural designations.

Sets forth area and eligibility requirements.

Prohibits business relocation assistance.

Requires reports to the Congress every four years.

Authorizes the waiver or modification of housing and community development rules in enterprise zones.

Provides for the coordination of community development block grant, urban development action grant, and other HUD programs in such zones.