Text: H.R.2779 — 101st Congress (1989-1990)All Information (Except Text)

There is one version of the bill.

Text available as:

Shown Here:
Introduced in House

 
 
HR 2779 SC
101st CONGRESS
1st Session
 H. R. 2779
To amend the Housing and Community Development Act of 1974 to revise and
improve the community development loan guarantee program.
IN THE HOUSE OF REPRESENTATIVES
June 28, 1989
Mr. RIDGE (for himself, Mr. GONZALEZ, Mr. MCDADE, Mr. WYLIE, Mr. FRANK,
Mrs. ROUKEMA, Mr. GAYDOS, Mr. BOEHLERT, Mr. BARNARD, Mr. CLINGER, Ms. KAPTUR,
Mr. LEWIS of Florida, Mr. ERDREICH, Mr. RITTER, Mr. MFUME, Mr. COUGHLIN,
Mr. CARPER, Mr. MCDERMOTT, Mr. KANJORSKI, Mr. COSTELLO, Mr. HATCHER,
Mr. KOLTER, Mr. ECKART, Mr. MURPHY, Mr. VENTO, and Mrs. PATTERSON) introduced
the following bill; which was referred to the Committee on Banking, Finance
and Urban Affairs
October 27, 1989
Additional sponsors: Mr. RANGEL, Mr. WELDON, Mr. ATKINS, Mr. TOWNS,
Mr. FAUNTROY, Mr. UPTON, Mr. PRICE, Mr. DYMALLY, Mrs. COLLINS, Mr. JONTZ,
Mr. LEWIS of Georgia, Mrs. SAIKI, Mr. COURTER, Mr. ROWLAND of Connecticut,
Mr. LAGOMARSINO, Mr. BUSTAMANTE, Mr. MACHTLEY, Mrs. LLOYD, Mr. FALEOMAVAEGA,
Mr. BROWN of California, Mr. SHUSTER, and Mr. Garcia
A BILL
To amend the Housing and Community Development Act of 1974 to revise and
improve the community development loan guarantee program.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Community Enterprise Revitalization Act
  of 1989'.
SEC. 2. STATEMENT OF PURPOSE AND OBJECTIVES.
  (a) PURPOSE- It is the purpose of the amendments made by this Act--
  (1) to reaffirm the commitment of the Federal Government to assist
  local governments in their efforts in stimulating economic and community
  development activities needed to combat severe economic distress and to
  help in promoting economic development activities needed to aid in economic
  recovery; and
  (2) to promote revitalization and development projects undertaken by local
  governments that principally benefit persons of low and moderate income,
  the elimination of slums and blight, and to meet urgent community needs,
  with special priority for projects located in areas designated as enterprise
  zones by the Federal Government or by any State.
  (b) OBJECTIVES- In order to further the purpose described in subsection
  (a), activities undertaken pursuant to the amendments made by this Act
  shall be directed toward meeting the objectives set forth in section 101(c)
  and 104(b)(3) of the Housing and Community Development Act of 1974 (42
  U.S.C. 5301(c) and 5304(b)(3)) and the additional objectives of--
  (1) encouraging local governments to establish public-private partnerships;
  (2) preserving and developing housing affordable for persons of low and
  moderate income; and
  (3) creating permanent employment opportunities, primarily for persons of
  low and moderate income.
SEC. 3. GUARANTEE OF LOANS ISSUED BY NONENTITLEMENT COMMUNITIES, TERRITORIES,
AND INDIAN TRIBES.
  (a) ELIGIBILITY-
  (1) IN GENERAL- Section 108 of the Housing and Community Development
  Act of 1974 (42 U.S.C. 5308) is amended by striking `unit of general
  local government' or `units of general local government' each place such
  term appears and inserting `eligible public entity' or `eligible public
  entities', respectively.
  (2) CONFORMING AMENDMENT- Section 108(h) of the Housing and Community
  Development Act of 1974 (42 U.S.C. 5308(h)) is amended by striking `unit
  or agency' and inserting `entity or agency'.
  (b) STATE ASSISTANCE IN APPLICATIONS- Section 108 of the Housing and
  Community Development Act of 1974 (42 U.S.C. 5308) is amended by adding
  at the end the following new subsection:
  `(n) Any State that has elected under section 106(d)(2)(A) to distribute
  funds to units of general local government in nonentitlement areas may
  assist such units in the submission of applications for guarantees under
  this section.'.
  (c) STATE GRANTS AS SECURITY-
  (1) IN GENERAL- Section 108(d) of the Housing and Community Development
  Act of 1974 (42 U.S.C. 5308(d)) is amended--
  (A) by inserting `(1)' after `(d)';
  (B) by redesignating paragraphs (1), (2), and (3), as subparagraphs (A),
  (B), and (C), respectively; and
  (C) by adding at the end the following new paragraph:
  `(2) To assist in assuring the repayment of notes or other obligations
  and charges incurred under this section, a State may pledge any grant for
  which the State may become eligible under this title as security for notes
  or other obligations and charges issued under this section by any unit of
  general local government in a nonentitlement area in the State.'.
  (2) REPAYMENTS- Section 108(e) of the Housing and Community Development
  Act of 1974 (42 U.S.C. 5308(e)) is amended by striking `subsection (d)(2)'
  and inserting `paragraphs (1)(B) and (2) of subsection (d)'.
  (d) DEFINITION- Section 108 of the Housing and Community Development Act
  of 1974 (42 U.S.C. 5308) (as previously amended by this section) is further
  amended by adding at the end the following new subsection:
  `(o) For purposes of this section, the term `eligible public entity' means
  any Indian tribe or unit of general local government, including units of
  general local government in nonentitlement areas.'.
SEC. 4. GUARANTEE OF HOUSING CONSTRUCTION LOANS.
  Section 108(a) of the Housing and Community Development Act of 1974 (42
  U.S.C. 5308(a)) is amended in the first sentence--
  (1) by striking `; or' and inserting a semicolon; and
  (2) by inserting before the period at the end the following: `; or (4)
  construction of housing for persons of low and moderate income'.
SEC. 5. LOAN REPAYMENT PERIOD.
  Section 108(a) of the Housing and Community Development Act of 1974
  (42 U.S.C. 5308(a)) is amended by inserting after the third sentence the
  following: `The Secretary may not deny a guarantee under this section on
  the basis of the proposed repayment period for the note or other obligation,
  unless the period is more than 20 years or the Secretary determines that the
  period causes the guarantee to constitute an unacceptable financial risk.'.
SEC. 6. INCREASE IN LOAN GUARANTEE LIMITS.
  (a) ANNUAL LOAN GUARANTEE COMMITMENT AUTHORITY- Section 108(a) of the Housing
  and Community Development Act of 1974 (42 U.S.C. 5308(a)) is amended in the
  last sentence by striking `$150,000,000' and all that follows and inserting
  the following: `$300,000,000 during fiscal year 1990, $500,000,000 during
  fiscal year 1991, and $700,000,000 during fiscal year 1992.'.
  (b) OUTSTANDING LOAN GUARANTEE AMOUNT PER ISSUER- Section 108(b) of
  the Housing and Community Development Act of 1974 (42 U.S.C. 5308(b))
  is amended--
  (1) by inserting after `this section' the following: `(excluding any amount
  defeased under the contract entered into under subsection (d)(1)(A))';
  (2) by striking `three' and inserting `5'; and
  (3) by inserting `or 107' after `section 106'.
SEC. 7. ALLOCATION OF LOAN GUARANTEES AND LIMITATION ON AMOUNT GUARANTEED
FOR EACH COMMUNITY.
  (a) ALLOCATION OF GUARANTEES- Section 108(a) of the Housing and Community
  Development Act of 1974 (42 U.S.C. 5308) is amended by adding at the end
  the following new sentence: `Of the amount approved in any appropriation
  Act for guarantees under this section in any fiscal year, the Secretary
  shall allocate 70 percent for guarantees for metropolitan cities and
  urban counties and 30 percent for guarantees for units of general local
  government in nonentitlement areas and Indian tribes. The Secretary may
  waive the percentage requirements of the preceding sentence in any fiscal
  year only to the extent that there is an absence of qualified applicants
  or proposed activities from metropolitan cities and urban counties or units
  of general local government in nonentitlement areas and Indian tribes.'.
  (b) LIMITATION PER COMMUNITY- Section 108(k) of the Housing and Community
  Development Act of 1974 (42 U.S.C. 5308(k)) is amended--
  (1) by inserting `(1) after `(k)'; and
  (2) by adding at the end the following new paragraph:
  `(2) An eligible public entity may not receive guarantees under this
  section in any single year in a cumulative amount that exceeds--
  `(A) for an eligible public entity that is a metropolitan city or urban
  county, $25,000,000; and
  `(B) for any eligible public entity not referred to in subparagraph (A),
  $5,000,000.'.
SEC. 8. DEBT PAYMENT ASSISTANCE.
  Section 108(h) of the Housing and Community Development Act of 1974
  (42 U.S.C. 5308(h)) is amended by adding at the end the following: `The
  Secretary may also, to the extent approved in appropriation Acts, assist
  the issuer of a note or other obligation guaranteed under this section in
  the payment of all or a portion of the principal and interest amount due
  under the note or other obligation, if the Secretary determines that the
  issuer is unable to pay the amount because of circumstances of extreme
  hardship beyond the control of the issuer.'.
SEC. 9. PRIORITY FOR PROJECTS LOCATED IN FEDERAL OR STATE ENTERPRISE ZONES.
  Section 108 of the Housing and Community Development Act of 1974 (42
  U.S.C. 5308) is amended by inserting after subsection (h) the following
  new subsection:
  `(i) In entering into commitments to guarantee notes and other obligations
  under this section, the Secretary shall give priority to notes and
  other obligations issued for the purpose of financing activities in areas
  designated as enterprise zones under title VII of the Housing and Community
  Development Act of 1987 or under any State enterprise zone program determined
  by the Secretary to be consistent with the objectives of such title VII.'.
SEC. 10. TRAINING AND INFORMATION.
  Section 108 of the Housing and Community Development Act of 1974 (42
  U.S.C. 5308) (as previously amended by this Act) is further amended by
  adding at the end the following new subsection:
  `(p)(1) The Secretary, in cooperation with eligible public entities,
  shall carry out training and information activities with respect to the
  guarantee program under this section. Such activities shall commence not
  later than 1 year after the date of the enactment of the Community Business
  Enterprise Revitalization Act of 1989.
  `(2) The Secretary may use amounts set aside under section 107 to carry
  out this subsection.'.
SEC. 11. ANNUAL REPORT.
  Section 113 of the Housing and Community Development Act of 1974 (42
  U.S.C. 5313) is amended--
  (1) in paragraph (2), by striking `and';
  (2) in paragraph (3), by striking the period at the end and inserting `;
  and'; and
  (3) by adding at the end the following new paragraph:
  `(4) a description of the activities carried out under section 108.'.
SEC. 12. REGULATIONS.
  To carry out the amendments made by this Act, the Secretary of Housing
  and Urban Development shall--
  (1) issue proposed regulations not later than 90 days after the date of
  the enactment of this Act; and
  (2) issue final regulations not later than 180 days after the date of the
  enactment of this Act.