Text: S.2304 — 101st Congress (1989-1990)All Information (Except Text)

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Introduced in Senate

 
 
S 2304 IS
101st CONGRESS
2d Session
S. 2304
To amend Federal laws to reform housing, community, and neighborhood
development, and related programs, and for other purposes.
IN THE SENATE OF THE UNITED STATES
March 20 (legislative day, JANUARY 23), 1990
Mr. RIEGLE (for himself, Mr. GARN, Mr. CRANSTON, Mr. D'AMATO, Mr. BOND,
Mr. HEINZ, Mr. MACK, Mr. GORTON, Mr. GRASSLEY, Mr. MCCLURE, Mr. MURKOWSKI,
Mr. CHAFEE, Mr. SYMMS, Mr. WILSON, Mr. COATS, Mr. KASTER, Mr. DOMENICI,
Mr. COCHRAN, Mr. MCCONNELL, Mr. STEVENS, and Mr. DANFORTH) (by request)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing and Urban Affairs
A BILL
To amend Federal laws to reform housing, community, and neighborhood
development, and related programs, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
  SECTION 1. SHORT TITLE AND TABLE OF CONTENTS- (a) SHORT TITLE- This Act
  may be cited as the `Homeownership and Opportunity for People Everywhere
  Act of 1990'.
  (b) Table of Contents-
Sec. 1. Short title and table of contents.
TITLE I--HOPE GRANTS
Subtitle A--HOPE for Public and Indian Housing Homeownership
Sec. 101. HOPE for public and Indian housing homeownership.
Sec. 102. Related amendments to section 18, demolition and disposition of
public housing.
Sec. 103. Related amendments to section 21, public housing homeownership
and management opportunities.
Sec. 104. Related amendment to section 8(o), housing voucher program.
Sec. 105. Implementation.
Sec. 106. Applicability.
Subtitle B--HOPE for HUD Multifamily Homeownership
Sec. 110. Program authority.
Sec. 111. Technical assistance grants.
Sec. 112. Planning grants.
Sec. 113. Implementation grants.
Sec. 114. Other program requirements and limitations.
Sec. 115. Section 8 assistance.
Sec. 116. Definitions.
Sec. 117. Exemption.
Sec. 118. Related National Housing Act amendment.
Sec. 119. Implementation.
Subtitle C--HOPE for Homeownership through Nonprofit Organizations
Sec. 120. Program authority.
Sec. 121. Implementation grants.
Sec. 122. Other program requirements and limitations.
Sec. 123. Exception to section 8 preference.
Sec. 124. Definitions.
Sec. 125. Implementation.
TITLE II--PRESERVATION OF LOW-INCOME HOUSING AND RESIDENT HOMEOWNERSHIP
Sec. 201. Preservation of low-income housing and resident homeownership.
Sec. 202. Related National Housing Act amendments.
Sec. 203. Related United States Housing Act of 1937 amendments.
Sec. 204. Extension of moratorium until effective date of this section.
Sec. 205. Transition.
Sec. 206. Effective date.
TITLE III--OTHER HOPE PROGRAMS
Sec. 301. Shelter plus care program.
Sec. 302. HOPE for elderly independence.
Sec. 303. Operation bootstrap program.
TITLE IV--HOUSING OPPORTUNITY ZONES
Sec. 401. Basic authority and purpose.
Sec. 402. Definitions
Sec. 403. Housing opportunity zones.
Sec. 404. Selection of housing opportunity zones.
Sec. 405. Barrier removal plans.
Sec. 406. Term and revocation of housing opportunity zone designations and
barrier removal plan approvals.
Sec. 407. Reports.
Sec. 408. Rental rehabilitation grant bonus.
Sec. 409. CDBG low- and moderate-income benefit in housing opportunity zones.
Sec. 410. Reuse of urban renewal land in housing opportunity zones.
Sec. 411. Urban homesteading preference.
Sec. 412. Single family mortgage insurance in housing opportunity zones.
Sec. 413. Applicability of relocation, environmental review, and related laws.
TITLE I--HOPE GRANTS
Subtitle A--HOPE for Public and Indian Housing Homeownership
  SEC. 101. HOPE FOR PUBLIC AND INDIAN HOUSING HOMEOWNERSHIP- The United
  States Housing Act of 1937 is amended by adding the following new title
  at the end thereof:
`TITLE III--HOPE FOR PUBLIC AND INDIAN HOUSING HOMEOWNERSHIP
  `SEC. 301. (a)(1) PROGRAM AUTHORITY- The Secretary is authorized to make--
  `(A) planning grants to help applicants to develop homeownership programs
  in accordance with this title; and
  `(B) implementation grants to carry out homeownership programs in accordance
  with this title.
  `(2) No more than 15 percent of the amounts appropriated pursuant to
  subsection (c) for any fiscal year may be used for planning grants under
  this section.
  `(b) AUTHORITY TO RESERVE HOUSING ASSISTANCE- In connection with a grant
  under this title, the Secretary may reserve authority to provide assistance
  under section 8 of this Act to the extent necessary--
  `(1) to provide assistance for the operating costs of an approved
  homeownership program after purchase by eligible families;
  `(2) to provide additional assistance in connection with a replacement
  housing plan; and
  `(3) to provide rental assistance for a non-purchasing tenant who resides
  in the project on the date the Secretary approves the application for an
  implementation grant, for use by the tenant in that or another project.
  `(c) AUTHORIZATION- There are authorized to be appropriated for grants under
  this title $96,000,000 for fiscal year 1991, $260,000,000 for fiscal year
  1992, and $400,000,000 for fiscal year 1993. Sums appropriated pursuant
  to this subsection shall remain available until expended.
  `SEC. 302. PLANNING GRANTS- (a) GRANTS- The Secretary is authorized to make
  planning grants to applicants for the purpose of developing homeownership
  programs under this title.
  `(b) ELIGIBLE ACTIVITIES- Planning grants may be used for the following
  activities--
  `(1) development of resident management corporations and resident councils;
  `(2) training and technical assistance for applicants;
  `(3) development of homeownership programs, including determining their
  affordability;
  `(4) preliminary architectural and engineering work;
  `(5) tenant and homebuyer counseling and training;
  `(6) planning for economic development, job training, and self-sufficiency
  activities that promote economic self-sufficiency of homebuyers and
  homeowners under the homeownership program;
  `(7) development of security plans; and
  `(8) preparation of an application for an implementation grant under
  this title.
  `(c) APPLICATION- (1) An application for a planning grant shall be submitted
  by an applicant in such form and in accordance with such procedures as
  the Secretary shall establish.
  `(2) The Secretary shall require that an application contain at a minimum--
  `(A) a request for a planning grant, specifying the activities proposed
  to be carried out, the schedule for completing the activities, and the
  amount of the grant requested;
  `(B) a description of the applicant and a statement of its qualifications;
  `(C) a certification that the applicant will comply with the requirements
  of the Fair Housing Act, title VI of the Civil Rights Act of 1964, section
  504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of
  1975, and will affirmatively further fair housing; and
  `(D) identification and description of the public housing project or
  projects involved, and a description of the composition of the tenants,
  including family size and income.
  `(3) The Secretary may require an applicant to submit an application for
  technical assistance and training of resident management corporations or
  resident councils under section 20(f) of this Act as part of the application
  under this section.
  `(d) SELECTION CRITERIA- The Secretary shall establish selection criteria
  for a national competition for assistance under this section, which shall
  include--
  `(1) the qualifications or potential capabilities of the applicant;
  `(2) the extent of tenant interest in the development of a homeownership
  program for the project;
  `(3) the potential for developing an affordable homeownership program and
  the suitability of the project for homeownership;
  `(4) such other factors as the Secretary determines to be appropriate
  for purposes of carrying out the program established by this title in an
  effective and efficient manner.
  `SEC. 303. IMPLEMENTATION GRANTS- (a) GRANTS- The Secretary is authorized
  to make implementation grants to applicants for the purpose of carrying
  out homeownership programs approved under this title.
  `(b) ELIGIBLE ACTIVITIES- Implementation grants may be used for the
  following activities--
  `(1) architectural and engineering work;
  `(2) acquisition of the public housing project from a public housing
  agency for the purpose of transferring ownership to eligible families in
  accordance with an approved homeownership program;
  `(3) rehabilitation of any public housing project covered by the
  homeownership program, in accordance with standards established by the
  Secretary;
  `(4) administrative costs of the applicant and any charges by the applicant
  for developing and carrying out the homeownership program;
  `(5) legal fees;
  `(6) counseling and training of homebuyers and homeowners under the
  homeownership program;
  `(7) defraying costs for the ongoing training needs of the recipient that
  are related to developing and carrying out the homeownership program;
  `(8) defraying costs related to relocation of tenants who elect to move;
  `(9) defraying costs related to any necessary temporary relocation of
  tenants during rehabilitation;
  `(10) economic development activities that promote economic self-sufficiency
  of homebuyers and homeowners under the homeownership program;
  `(11) funding of operating and replacement reserves of the project covered
  by the homeownership program; and
  `(12) defraying some or all of the costs related to implementation of a
  replacement housing plan.
  `(c) MATCHING FUNDING- Each recipient shall assure that at least one-third of
  the total cost of eligible activities under this section that are necessary
  to carry out the homeownership program are provided from non-Federal
  sources. For purposes of the preceding sentence, non-Federal sources may
  include block grants made available by the Federal Government to States or
  local governments on a formula basis. In determining compliance with this
  subsection, a recipient may include the value of such items as the Secretary
  determines to be appropriate, at an amount determined in accordance with
  standards established by the Secretary.
  `(d) APPLICATION- (1) An application for an implementation grant shall
  be submitted by an applicant in such form and in accordance with such
  procedures as the Secretary shall establish.
  `(2) The Secretary shall require that an application contain at a minimum--
  `(A) a request for an implementation grant, specifying the amount of the
  grant requested;
  `(B) where applicable, an application for assistance under section 8 of
  this Act, (i) specifying the proposed uses of such assistance and the
  period during which the assistance will be needed, and (ii) including an
  economic self-sufficiency plan specifying an estimated target date for
  phasing out the section 8 assistance;
  `(C) a description of the proposed homeownership program, consistent
  with section 304 and the other requirements of this title, specifying
  the activities proposed to be carried out and their estimated costs,
  demonstrating that the program will be affordable to eligible families,
  and identifying the schedules for carrying it out;
  `(D) identification and description of the public housing project or
  projects involved, and a description of the composition of the tenants,
  including family size and income;
  `(E) a description of the resources that are expected to be made available
  to provide the matching funding required under subsection (c) and of
  other resources that are expected to be made available in support of the
  homeownership program;
  `(F) identification and description of the financing proposed;
  `(G) where the applicant is not a public housing agency, the proposed
  sales price, if any, and terms to the applicant; and in all cases, the
  estimated sales price, if any, and terms to eligible families;
  `(H) any proposed restrictions on the resale of units under a homeownership
  program;
  `(I) a plan for--
  `(i) identifying and selecting eligible families to participate in the
  homeownership program;
  `(ii) providing relocation assistance to families who elect to move;
  `(iii) assuring contined affordability by tenants, homebuyers, and homeowners
  in the project;
  `(iv) providing ongoing training and counseling for homebuyers and
  homeowners; and
  `(v) where the application does not propose restrictions on the resale of
  units under a homeownership program that meet requirements specified by the
  Secretary, replacing units in eligible projects covered by a homeownership
  program; and
  `(J) a certification that the applicant will comply with the requirements
  of the Fair Housing Act, title VI of the Civil Rights Act of 1964, section
  504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of
  1975, and will affirmatively further fair housing.
  `(e) SELECTION CRITERIA- The Secretary shall establish selection criteria
  for a national competition for assistance under this section, which shall
  include--
  `(1) the ability of the applicant to develop and carry out the proposed
  homeownership program, taking into account the quality of any related
  ongoing program of the applicant, and the extent of tenant interest in
  the development of a homeownership program and community support;
  `(2) the extent to which current tenants and other eligible families will
  be able to afford the purchase;
  `(3) the quality and viability of the proposed homeownership program,
  including the viability of the economic self-sufficiency plan;
  `(4) the extent to which funds for activities that do not qualify as eligible
  activities will be provided in support of the homeownership program; and
  `(5) whether the public housing project is located in a unit of general
  local government that has an approved Barrier Removal Plan, in accordance
  with title IV of the Homeownership and Opportunity for People Everywhere
  Act of 1990.
  `(f) APPROVAL- The Secretary shall notify the applicant whether the
  application is approved or not approved. The Secretary may approve
  the application for an implementation grant with a statement that the
  application for the section 8 assistance is conditionally approved,
  subject to the availability of appropriations in subsequent fiscal years.
  `SEC. 304. OTHER PROGRAM REQUIREMENTS AND LIMITATIONS- `(a) FINANCING-
  (1) The application shall identify and describe the proposed financing
  for (A) any rehabilitation, and (B) acquisition (i) of the project, where
  applicable, by an entity other than the public housing agency for transfer
  to eligible families, and (ii) by eligible families of ownership interests
  in, or shares representing, units in the project. Financing may include use
  of the implementation grant, sale for cash, or other sources of financing
  (subject to applicable requirements), including conventional mortgage
  loans and mortgage loans insured under title II of the National Housing Act.
  `(2) Any lender that provides financing in connection with a homeownership
  program under this title shall give the public housing agency, resident
  management corporation, or other appropriate entity a reasonable opportunity
  to cure a financial default before foreclosing on the property, or taking
  other action as a result of the default.
  `(b) HOUSING STANDARDS- The application shall include a plan assuring
  that the unit will meet housing standards established by the Secretary for
  the purpose of this title no later than three years after transfer of an
  ownership interest in, or shares representing, a unit to an eligible family.
  `(c) ECONOMIC SELF-SUFFICIENCY PLAN- Where a homeownership program
  involves the use of section 8 assistance for homebuyers or homeowners,
  the application shall include an economic self-sufficiency plan designed
  to reduce the need for the assistance through the provision of training,
  employment, and supportive services opportunities.
  `(d) SALE BY PUBLIC HOUSING AGENCY TO APPLICANT OR OTHER ENTITY REQUIRED-
  Where the Secretary approves an application providing for the transfer of
  the eligible project from the public housing agency to another applicant
  (or other entity, including a for-profit entity or a for-profit entity in
  cooperation with an applicant), the public housing agency shall transfer the
  project to such other entity, in accordance with the approved homeownership
  program.
  `(e) PREFERENCES- In selecting eligible families for homeownership, the
  recipient shall give a first preference to otherwise qualified current
  tenants and a second preference to otherwise qualified eligible families who
  have completed participation in the operation bootstrap program authorized
  under section 8(w) of this Act or in another economic self-sufficiency
  program specified by the Secretary.
  `(f) COST LIMITATIONS- The Secretary may establish cost limitations on
  eligible activities under this subtitle.
  `(g) ANNUAL CONTRIBUTIONS- Notwithstanding the purchase of a public housing
  project under this section, or the purchase of a unit in a public housing
  project by an eligible family, the Secretary shall continue to pay annual
  contributions with respect to the project. Such contributions may not
  exceed the maximum contributions authorized in section 5(a).
  `(h) OPERATING SUBSIDIES- Operating subsidies under section 9 of this Act
  shall not be available with respect to a public housing project after the
  date of its sale by the public housing agency.
  `(i) USE OF PROCEEDS FROM SALES TO ELIGIBLE FAMILIES- The entity that
  transfers ownership interests in, or shares representing, units to eligible
  families, or another entity specified in the approved application, may
  use 50 percent of the proceeds, if any, from the initial sale for costs of
  the homeownership program, including improvements to the project, business
  opportunities for lower income families, and supportive services related
  to the homeownership program; additional homeownership opportunities;
  and other activities approved by the Secretary. The remaining 50 percent
  shall be returned to the Secretary for use under this subtitle.
  `(j) RESTRICTIONS ON RESALE BY HOMEOWNERS- (1) A homeowner under a
  homeownership program may transfer the homeowner's ownership interest in,
  or shares representing, the unit. Where a resident management corporation
  or resident council has jurisdiction over the unit, that entity shall have
  the right to purchase the ownership interest in, or shares representing,
  the unit from the homeowner for the amount specified in a firm contract
  between the homeowner and a prospective buyer. If such an entity does
  not have jurisdiction over the unit or elects not to purchase and if the
  prospective buyer is not a lower income family, the public housing agency
  shall have the right to purchase the ownership interest in, or shares
  representing, the unit for the same amount.
  `(2) The homeownership program may establish additional restrictions on
  the resale of a unit under the program.
  `(3) If the sale to the first eligible family is for less than market value,
  the homeownership program shall provide for appropriate restrictions to
  assure that an eligible family may not receive any undue profit. The plan
  shall provide for--
  `(A) authorizing the family to retain a portion of the net proceeds of
  the sale on a sliding scale over a 10-year period;
  `(B) a plan consistent with section 21(a)(4)(D);
  `(C) execution by the initial purchaser of a promissory note equal to the
  difference between the market value and the purchase price, payable to the
  public housing agency or other entity designated in the homeownership plan,
  together with a mortgage securing the obligation of the note; or
  `(D) any other appropriate arrangement that the Secretary determines is
  adequate to prevent undue profit for at least 10 years.
  `(4) Fifty percent of any portion of the net sales proceeds that may not
  be retained by the homeowner under the plan approved pursuant to paragraph
  (3) shall be paid to the entity that transferred ownership interests in,
  or shares representing, units to eligible families, or another entity
  specified in the approved application, for use for improvements to the
  project, business opportunities for lower income families, supportive
  services related to the homeownership program, additional homeownership
  opportunities, and other activities approved by the Secretary. The remaining
  50 percent shall be returned to the Secretary for use under this subtitle.
  `(k) REPLACEMENT PLAN- Each homeownership program shall include a
  replacement plan meeting the requirements of sections 21(a)(3)(A)(iv) and
  21(a)(3)(C) for the replacement of each unit covered by the program. Where
  the homeownership program contains resale restrictions under subsection
  (j)(2) that require transfer to lower income buyers for the life of the
  homeownership program and that otherwise meet requirements specified by
  the Secretary, the requirement for a replacement plan shall be apply.
  `(l) PROTECTION OF NON-PURCHASING FAMILIES- (1) No tenant residing in
  a dwelling unit in a public housing project on the date the Secretary
  approves an application for an implementation grant may be evicted by
  reason of a homeownership program approved under this subtitle.
  `(2) The recipient shall inform each such tenant that if the tenant decides
  not to purchase a unit, or is not qualified to do so, the public housing
  agency will offer each otherwise qualified tenant (A) a unit in another
  public housing project, or (B) section 8 assistance, for use in that or
  another project.
  `(3) The recipient shall also inform each such tenant that if the tenant
  chooses to move, the recipient will pay relocation assistance in accordance
  with the approved homeownership program.
  `(m) DOLLAR LIMITATION ON ECONOMIC DEVELOPMENT ACTIVITIES- Not more than
  an aggregate of $250,000 from amounts made available under sections 302 and
  303, and under section 14 of this Act, may be used for economic development
  activities under sections 302(b)(6) and 303(b)(10) for any project.
  `SEC. 305. HOMEOWNERSHIP ASSISTANCE- From amounts made available for use
  under section 8 of this Act, the Secretary may provide assistance for the
  operating costs of the approved homeownership program after purchase by
  eligible families, to the extent that the total income of the project is not
  sufficient to cover the costs of operation. The Secretary may enter into a
  contract whose total amount does not exceed five times the current annual
  operating subsidy determined under section 9 of this Act with respect to the
  project for the year before its sale under this subtitle, plus an annual
  inflation adjustment determined by the Secretary. The assistance shall be
  paid on an annual basis, and may not exceed an amount for each year that is
  equal to the annual operating subsidy determined under section 9 of this
  Act with respect to the project for the year before its sale under this
  subtitle, plus an annual inflation adjustment determined by the Secretary.
  `SEC. 306. DEFINITIONS- For purposes of this title--
  `(1) The term `applicant' means the following entities that may represent
  the tenants of the project: a public housing agency (including an Indian
  housing authority); a resident management corporation, established in
  accordance with requirements of the Secretary under sections 20 and 21
  of this Act; a resident council; a cooperative association; a public or
  private nonprofit organization; or a public body, including an agency or
  instrumentality thereof.
  `(2) The term `eligible family' means a family or individual who is a
  tenant in the public or Indian housing project on the date the Secretary
  approves an implementation grant, a lower income family, or a family or
  individual who is assisted under a housing program administered by the
  Secretary or the Secretary of Agriculture.
  `(3) The term `homeownership program' means a program providing for
  acquisition by eligible families of ownership interests in, or shares
  representing, at least one-half of the units in a public housing project
  under any arrangement determined by the Secretary to be appropriate, such
  as cooperative ownership (including limited equity cooperative ownership)
  and fee simple ownership (including condominium ownership), for occupancy
  by the eligible families.
  `(4) The term `recipient' means an applicant approved to receive a grant
  under this title.
  `(5) The term `resident council' means any incorporated nonprofit
  organization or association that--
  `(A) is representative of the tenants of the housing;
  `(B) adopts written procedures providing for the election of officers on
  a regular basis; and
  `(C) has a democratically elected governing board, elected by the tenants
  of the housing.
  `SEC. 307. RELATIONSHIP TO OTHER HOMEOWNERSHIP OPPORTUNITIES- The program
  authorized under this title shall be in addition to any other public housing
  homeownership and management opportunities, including those under section
  5(h), section 21, and title II of this Act.'.
  SEC. 102. RELATED AMENDMENTS TO SECTION 18, DEMOLITION AND DISPOSITION OF
  PUBLIC HOUSING- Section 18(b)(1) of such Act is amended by striking out
  `disposition' and inserting in lieu thereof the following:
`disposition, and the tenant councils and resident management corporation,
if any, have been given appropriate opportunities to purchase the project
or portion of the project covered by the application,'.
  SEC. 103. RELATED AMENDMENTS TO SECTION 21, PUBLIC HOUSING HOMEOWNERSHIP
  AND MANAGEMENT OPPORTUNITIES- (1) Section 21(a)(1)(B) of such Act is
  amended to read as follows:
  `(B) the resident management corporation shall have demonstrated skill in
  the delivery of economic, social, and educational programs; and'.
  (2) Section 21(a)(1)(C) of such Act is amended to read as follows:
  `(C) the resident management corporation shall have demonstrated its ability
  to manage public housing by having done so effectively and efficiently
  for a period of not less than 3 years or by arranging for management by
  a qualified management entity.'.
  (3) Section 21(a)(2) of such Act is amended by striking out subparagraph (C).
  (4) Section 21(a)(3)(A) is amended by adding the following at the end of
  clause (iv):
  `(III) the use of five-year tenant-based assistance under section 8;
  `(IV) the use of a State or local program that is comparable to any of the
  Federal programs referred to in clauses (I) through (III) as to eligibility
  and contribution to rent, and provides a term of assistance of not less
  than five years;
  `(V) units provided with the low-income tax credit provisions of the
  Internal Revenue Code of 1986; and
  `(VI) units provided under subtitle C of title I of the Homeownership and
  Opportunity for People Everywhere Act of 1990.'.
  (5) Section 21(a)(3)(A)(v) of such Act is amended by striking out `the
  minimum safety and livability standards applicable under section 14' and
  inserting in lieu thereof `safety and livability standards, as determined
  by the Secretary'.
  (6) Section 21(a)(3)(A) of such Act is amended by--
  (A) striking out the period at the end of clause (v) and inserting a
  semicolon; and
  (B) adding the following new clauses at the end thereof:
  `(vi) the resident management corporation has a workable plan for giving
  all tenants an opportunity to become owners, which plan shall identify--
  `(I) the price at which the corporation intends to sell individuals units
  or cooperative shares in the project;
  `(II) the factors that will influence the setting of such price;
  `(III) how such price compares to the estimated appraised value of the
  units or shares;
  `(IV) the underwriting standard the corporation plans to use for potential
  tenant purchasers;
  `(V) the financing arrangements the tenants are expected to pursue or be
  provided; and
  `(VI) a workable schedule of sale based on estimated tenant incomes; and
  `(vii) the resident management corporation has certified that it will
  transfer ownership of the property to tenants within a specified period
  of time that the Secretary determines to be reasonable.'.
  (7) Section 21(a)(3)(C) of such Act is amended to read as follows:
  `(C) The replacement housing plan under subparagraph (A)(iv) may provide
  that all or part of such additional dwelling units may be located outside
  the jurisdiction of the public housing agency (the `original agency') if--
  `(i) the location is in the same housing market area as the original agency,
  as determined by the Secretary;
  `(ii) the plan contains an agreement between the original agency and the
  public housing agency in the alternate location or other public or private
  entity that will be responsible for providing the additional units in the
  alternate location (`alternate agency or entity') that the alternate agency
  or entity will, with respect to the dwelling units involved--
  `(I) provide the dwelling units in accordance with subparagraph (A)(iv)
  of this paragraph; and
  `(II) not impose a local residency preference on any resident of the
  jurisdiction of the original agency for purposes of admission to any such
  units; and
  `(iii) the arrangement is approved by the unit of general local government
  for the jurisdiction in which the additional units will be located.'.
  (8) Section 21(a)(5) of such Act is amended by striking out `and amounts
  recaptured under paragraph (4)'.
  SEC. 104. RELATED AMENDMENT TO SECTION 8(o), HOUSING VOUCHER PROGRAM-
  The first sentence of section 8(o)(3) of such Act is amended by--
  (1) striking `or'; and
  (2) insert the following before the period: `, or
  (D) a family that qualifies to receive a voucher in connection with a
  homeownership program approved under title I of the Homeownership and
  Opportunity for People Everywhere Act of 1990'.
  SEC. 105. IMPLEMENTATION- Not later than 120 days after the date funds
  authorized under title III of the United States Housing Act of 1937 first
  become available for obligation, the Secretary shall by notice establish
  such requirements as may be necessary to carry out the provisions of this
  title. Such requirements shall be subject to section 553 of title 5,
  United States Code. The Secretary shall issue regulations based on the
  initial notice before the expiration of the 8-month period following the
  date of the notice.
  SEC. 106. APPLICABILITY- In accordance with section 201(b)(2) of such Act,
  the amendments made by this subtitle shall also apply to public housing
  developed or operated pursuant to a contract between the Secretary of
  Housing and Urban Development and an Indian Housing Authority.
Subtitle B--HOPE for HUD Multifamily Homeownership
  SEC. 110. PROGRAM AUTHORITY- (a)(1) The Secretary is authorized to make--
  (A) technical assistance grants to develop the capacity of applicants to
  develop and carry out homeownership programs;
  (B) planning grants to enable applicants to develop homeownership programs;
  and
  (C) implementation grants to enable applicants to carry out homeownership
  programs.
  (2) Not more than 15 percent of the amounts appropriated pursuant to
  subsection (c) for any fiscal year may be used for technical assistance
  grants and planning grants.
  (b) AUTHORITY TO RESERVE HOUSING ASSISTANCE- In connection with a grant
  under this subtitle, the Secretary may reserve authority to provide
  assistance under section 8 of the United States Housing Act of 1937 to
  the extent necessary--
  (1) to provide housing assistance to an otherwise qualified eligible family,
  for use by the family in connection with the purchase and continued ownership
  by the family of an ownership interest in, or shares representing, a unit
  in the property; and
  (2) to provide rental assistance for a non-purchasing tenant who resides
  in the property on the date the Secretary approves an application for an
  implementation grant, for use by the tenant in that or another property.
  (c) AUTHORIZATION- There are authorized to be appropriated for grants
  under this subtitle $72,000,000 for fiscal year 1991, $195,000,000 for
  fiscal year 1992, and $300,000,000 for fiscal year 1993. Sums appropriated
  pursuant to this subsection shall remain available until expended.
  SEC. 111. TECHNICAL ASSISTANCE GRANTS- (a) GRANTS- The Secretary is
  authorized to make technical assistance grants to applicants for the
  purpose of developing the capacity of applicants to develop and carry out
  homeownership programs under this subtitle and under the Low-Income Housing
  Preservation and Resident Homeownership Act of 1990, and to develop and
  carry out other homeownership opportunities involving acquisition of single
  family property, containing no more than four units, owned by the Secretary.
  (b) ELIGIBLE ACTIVITIES- Technical assistance grants may be used for
  the purpose of providing training and technical assistance for potential
  applicants.
  (c) APPLICATION- (1) An application for a technical assistance grant
  shall be submitted by an applicant in such form and in accordance with
  such procedures as the Secretary shall establish.
  (2) The Secretary shall require that an application contain at a minimum--
  (A) a request for a technical assistance grant, specifying the activities
  proposed to be carried out, the schedule for completing the activities,
  and the amount of the grant requested; and
  (B) a description of the applicant and a statement of its qualifications.
  (d) SELECTION CRITERIA- The Secretary shall establish selection criteria,
  which shall include--
  (1) the qualification or potential capabilities of the applicant; and
  (2) such other factors as the Secretary determines to be appropriate for
  purposes of the program established by this title.
  SEC. 112. PLANNING GRANTS- (a) GRANTS- The Secretary is authorized to make
  planning grants to applicants for the purpose of developing homeownership
  programs under this subtitle.
  (b) ELIGIBLE ACTIVITIES- Planning grants may be used for the following
  activities--
  (1) training and technical assistance of applicants related to the
  development of a specific homeownership program;
  (2) development of homeownership programs, including determining their
  affordability;
  (3) preliminary architectural and engineering work;
  (4) tenant and homebuyer counseling and training;
  (5) planning for economic development, job training, and self-sufficiency
  activities that promote economic self-sufficiency for homebuyers and
  homeowners under the homeownership program;
  (6) development of security plans; and
  (7) preparation of an application for an implementation grant under this
  subtitle or of a homeownership program proposal under the Low-Income
  Housing Preservation and Resident Homeownership Act of 1990.
  (c) APPLICATION- (1) An application for a planning grant shall be submitted
  by an applicant in such form and in accordance with such procedures as
  the Secretary shall establish.
  (2) The Secretary shall require that an application contain at a minimum--
  (A) a request for a planning grant, specifying the activities proposed to
  be carried out, the schedule for completing the activities, and the amount
  of the grant requested;
  (B) a description of the applicant and a statement of its qualifications;
  (C) a certification that the applicant will comply with the requirements of
  the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504
  of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975,
  and will affirmatively further fair housing; and
  (D) identification and description of the eligible property involved,
  and a description of the composition of the tenants, including family size
  and income.
  (d) SELECTION CRITERIA- The Secretary shall establish selection criteria
  for assistance under this section, which shall include--
  (1) the qualifications or potential capabilities of the applicant;
  (2) the extent of tenant interest in the development of a homeownership
  program for the property;
  (3) the potential for developing an affordable homeownership program and
  the suitability of the property for homeownership; and
  (4) such other factors as the Secretary determines to be appropriate for
  purposes of carrying out the program established by the subtitle in an
  effective and efficient manner.
  SEC. 113. IMPLEMENTATION GRANTS- (a) GRANTS- The Secretary is authorized
  to make implementation grants to applicants for the purpose of carrying
  out homeownership programs approved under this subtitle.
  (b) ELIGIBLE ACTIVITIES- Implementation grants may be used for the following
  activities--
  (1) architectural and engineering work;
  (2) acquisition of the eligible property for the purpose of transferring
  ownership to eligible families in accordance with an approved homeownership
  program;
  (3) rehabilitation of any property covered by the homeownership program,
  in accordance with standards established by the Secretary;
  (4) administrative costs of the applicant and any charges by the applicant
  for developing and carrying out the homeownership program;
  (5) legal fees;
  (6) counseling and training of homebuyers and homeowners under the
  homewownership program;
  (7) defraying costs related to ongoing training needs of the recipient
  related to developing and carrying out the homeownership program;
  (8) defraying costs related to relocation of tenants who elect to move;
  (9) defraying costs related to any necessary temporary relocation of
  tenants during rehabilitation;
  (10) economic development, job training, and self-sufficiency activities
  that promote economic self-sufficiency of the project's homebuyers and
  homeowners of the property covered by the homeownership program; and
  (11) funding for operating and replacement reserves of the property covered
  by the homeownership program.
  (c) MATCHING FUNDING- Each recipient shall assure that at least one-third of
  the total cost of eligible activities under this section that are necessary
  to carry out the homeownership program are provided from non-Federal
  sources. For purposes of the preceding sentence, non-Federal sources may
  include block grants made available by the Federal government to States and
  local governments on a formula basis. In determining compliance with this
  subsection, a recipient may include such items as the Secretary determines
  to be appropriate, at an amount determined in accordance with standards
  established by the Secretary.
  (d) APPLICATION- (1) An application for an implementation grant shall
  be submitted by an applicant in such form and in accordance with such
  procedures as the Secretary shall establish.
  (2) The Secretary shall require that an application contain at a minimum--
  (A) a request for an implementation grant, specifying the amount of the
  grant requested;
  (B) where applicable, an application for assistance under section 8 of
  United States Housing Act of 1937, specifying the proposed uses of such
  assistance and the period during which the assistance will be needed;
  (C) a description of the proposed homeownership program, consistent with
  section 114 and the other requirements of this subtitle, specifying
  the activities proposed to be carried out and their estimated costs,
  demonstrating the program will be affordable by eligible families, and
  identifying the schedule for carrying it out;
  (D) identification and description of the property involved, and a
  description of the composition of the tenants, including family size
  and income;
  (E) a description of the resources that are expected to be made available
  to provide the matching funding required under subsection (c) and of
  other resources that are expected to be made available in support of the
  homeownership program;
  (F) identification and description of the financing proposed;
  (G) the proposed sales price and terms to an entity, if any, that will
  purchase the property for resale to eligible families; and the proposed
  sales price, if any, and terms to eligible families;
  (H) any proposed restrictions on the resale of units under a homeownership
  program;
  (I) a plan for--
  (i) identifying and selecting eligible families to participate in the
  homeownership program;
  (ii) providing relocation assistance to families who elect to move;
  (iii) assuring continued affordability by tenants, homebuyers, and homeowners
  in the property;
  (iv) providing ongoing training and counseling for homebuyers and homeowners;
  (v) where the application does not propose restrictions on the resale of
  units under a homeownership program that meet requirements specified by the
  Secretary, replacing units in eligible property covered by a homeownership
  program; and
  (vi) where homebuyers or homeowners under a homeownership program are
  expected to receive the benefit of Federal, State, or local assistance
  promoting economic self-sufficiency of homebuyers and homeowners; and
  (J) a certification that the applicant will comply with the requirements of
  the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504
  of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975,
  and will affirmatively further fair housing.
  (e) APPROVAL- The Secretary shall notify the applicant whether the
  application is approved or not approved. The Secretary may approve
  the application for an implementation grant with a statement that the
  application for the section 8 assistance is conditionally approved,
  subject to the availability of appropriations in subsequent fiscal years.
  (f) SELECTION CRITERIA- The Secretary shall establish selection criteria
  for assistance under this section, which shall include--
  (1) the ability of the applicant to develop and carry out the proposed
  homeownership program, taking into account the quality of any related
  ongoing program of the applicant, and the extent of tenant interest in
  the development of a homeownership program and community support;
  (2) the extent to which current tenants and other eligible families will
  be able to afford to purchase;
  (3) the quality and viability of the proposed homeownership program;
  (4) the extent and urgency of the need to approve the application in order
  to protect the opportunity to provide homeownership of units in the property;
  (5) the extent to which funds for activities that do not qualify as eligible
  activities will be provided in support of the homeownership program; and
  (6) whether the eligible property is located in a unit of general local
  government that has an approved Barrier Removal Plan, in accordance with
  title IV of the Homeownership and Opportunity for People Everywhere Act
  of 1990.
  SEC. 114. OTHER PROGRAM REQUIREMENTS AND LIMITATIONS- (a) FINANCING- The
  application shall identify and describe the proposed financing for (1) any
  rehabilitation, and (2) acquisition (A) of the property, where applicable,
  by a resident or other entity for transfer to eligible families, and (B)
  by eligible families of ownership interests in, or shares representing,
  units in the property. Financing may include use of the implementation
  grant, sale for cash, and other sources of financing (subject to applicable
  requirements), including conventional mortgage loans and mortgage loans
  insured under title II of the National Housing Act.
  (b) HOUSING STANDARDS- The application shall include a plan assuring that
  the unit will meet housing standards established by the Secretary for the
  purpose of this subtitle no more than three years after transfer of an
  ownership interest in, or shares representing, a unit to an eligible family.
  (c) ECONOMIC SELF-SUFFICIENCY PLAN- Where a homebuyer or homeowner under
  a homeownership program is expected to receive the benefit of Federal,
  State, or local assistance, the application shall include an economic
  self-sufficiency plan designed to provide training, employment, and
  supportive services opportunities in order to eliminate the need for
  assistance for such persons.
  (d) PREFERENCES- In selecting eligible families for homeownership, the
  recipient shall give a first preference to otherwise qualified current
  tenants and a second preference to otherwise qualified eligible families who
  have completed participation in the operation bootstrap program authorized
  under section 8(w) of the United States Housing Act of 1937 or another
  economic self-sufficiency program specified by the Secretary.
  (e) COST LIMITATIONS- The Secretary may establish cost limitations on
  eligible activities under this subtitle.
  (f) USE OF PROCEEDS FROM SALES TO ELIGIBLE FAMILIES- The entity that
  transfers ownership interests in, or shares representing, units to eligible
  families, or another entity specified in the approved application, may
  use 50 percent of the proceeds, if any, from the initial sale for costs of
  the homeownership program, including improvements to the project, business
  opportunities for lower income families, and supportive services related
  to the homeownership program; additional homeownership opportunities;
  and other activities approved by the Secretary. The remaining 50 percent
  shall be returned to the Secretary for use under this subtitle.
  (g) RESTRICTIONS ON RESALE BY HOMEOWNERS- (1) A homeowner under a
  homeownership program may transfer the homeowner's ownership interest in,
  or shares representing, the unit.
  (2) The homeownership program may establish restrictions on the resale of
  a unit under the program.
  (3) If the sale to the first eligible family is for less than fair market
  value, the homeownership program shall provide for appropriate restrictions
  to assure that an eligible family may not receive any undue profit. The
  plan shall provide for--
  (A) authorizing the family to retain a portion of the net proceeds of the
  sale on a sliding scale over a 10-year period;
  (B) a plan consistent with section 21(a)(4)(D) of the United States Housing
  Act of 1937;
  (C) execution by the initial purchaser of a promissory note equal to the
  difference between the market value and the purchase price, payable to the
  recipient or other entity designated in the homeownership plan, together
  with a mortgage securing the obligation of the note; or
  (D) any other appropriate arrangement that the Secretary determines is
  adequate to prevent undue profit for at least 10 years.
  (4) Fifty percent of any portion of the net sales proceeds that may not
  be retained by the homowner under the plan approved pursuant to paragraph
  (3) shall be paid to the entity that transferred ownership interests in, or
  shares representing, units to eligible families, or another entity specified
  in the approved application, for use for improvements to the project,
  business opportunities for lower income families, supportive services related
  to the homeownership program, additional homeownership opportunities, and
  other activities approved by the Secretary. The remaining 50 percent of
  such proceeds shall be returned to the Secretary for use under this subtitle.
  (h) PROTECTION OF NON-PURCHASING FAMILIES- (1) No tenant residing in
  a dwelling unit in a property on the date the Secretary approves an
  application for an implementation grant may be evicted by reason of a
  homeownership program approved under this subtitle.
  (2) The recipient shall inform each such tenant that if the tenant decides
  not to purchase a unit, or is not qualified to do so, the recipient will
  request the public housing agency to offer section 8 assistance to each
  otherwise qualified tenant, for use in that or another property.
  (3) The recipient shall also inform each such tenant that if the tenant
  chooses to move, the recipient will pay relocation assistance in accordance
  with the approved homeownership program.
  (i) SALE OF ELIGIBLE PROPERTIES BY THE SECRETARY- FORECLOSURE SALES- In
  connection with a foreclosure sale, the Secretary may require, as a term
  or condition of sale, that an eligible property be used by the purchaser,
  and its successors and assigns, only in accordance with a homeownership
  program approved under this subtitle.
  (j) DOLLAR LIMITATION ON ECONOMIC DEVELOPMENT ACTIVITIES- Not more than
  an aggregate of $225,000 from amounts made available under sections 112
  and 113 may be used for economic development activities under sections
  112(b)(5) and 113(b)(10) for any project.
  (k) CERTAIN ENTITIES NOT ELIGIBLE- Any entity that assumes, as determined
  by the Secretary, a mortgage covering eligible property in connection with
  the acquisition of the property from an owner under this section must
  comply with any low-income affordability restrictions for the remaining
  term of the mortgage. This requirement shall only apply to an entity,
  such as a cooperative association, that, as determined by the Secretary,
  intends to own the housing on a permanent basis.
  SEC. 115. SECTION 8 ASSISTANCE- (a) HOMEOWNERSHIP- From amounts made
  available for use under section 8 of this Act, notwithstanding any provision
  concerning the form of ownership, the Secretary may provide assistance
  for operating costs of the approved homeownerhsip program after purchase
  by eligible families, to the extent that the total income of the project
  is not sufficient to cover the costs of operation. The Secretary may enter
  into a contract whose total amount shall not exceed five times the current
  annual Federal assistance, plus an annual inflation adjustment determined by
  the Secretary. The assistance shall be paid on an annual basis, and may not
  exceed an amount for each year that is equal to the current annual Federal
  assistance, plus an annual inflation adjustment determined by the Secretary.
  (b) EXCEPTION TO SECTION 8 PREFERENCE- The requirement for giving preference
  to certain categories of eligible families under sections 8(d)(1)(A) and
  8(o)(3) shall not apply to the provision of assistance to a family residing
  in a dwelling unit in an eligible project on the date the Secretary approves
  an application for an implementation grant.
  SEC. 116. DEFINITIONS- For purposes of this title--
  (1) The term `applicant' means the following entities that may represent
  the tenants of the housing: a resident management corporation or a resident
  council, established in accordance with requirements of the Secretary;
  a cooperative association; or a public or private nonprofit organization;
  a public body (including an agency or instrumentality thereof); or a public
  housing agency (including an Indian housing authority). For purposes
  of technical assistance grants under section 111, the term `applicant'
  also means any other entity determined to be suitable by the Secretary
  to receive a grant and to provide training and technical assistance to
  potential applicants for homeownership programs under this subtitle or to
  other entities interested in developing other homeownership opportunities
  involving eligible property.
  (2) The term `eligible family' means a family or individual who is a
  tenant of the eligible property on the date the Secretary approves an
  implementation grant or who is a lower income family.
  (3) The term `eligible property' means a multifamily rental property,
  containing five or more units, that is (A) owned by the Secretary and was
  financed by a loan or mortgage that was insured or held by the Secretary
  under the National Housing Act or by a loan held by the Secretary under
  section 312 of the Housing Act of 1964; (B) financed by a loan or mortgage
  that is held by the Secretary and was insured by the Secretary under
  such Act; or (C) determined by the Secretary to have serious physical or
  financial problems under the terms of such an insurance or loan program. For
  purposes of technical assistance grants under section 111, the term `eligible
  property' also means single family property, containing no more than four
  units, owned by the Secretary and eligible low-income housing, as defined
  in the Low-Income Housing Preservation and Resident Homeownership of 1990.
  (4) The term `homeownership program' means a program providing for
  acquisition by eligible families of ownership interest in, or shares
  representing, the units in an eligible property under any arrangement
  determined by the Secretary to be appropriate, such as cooperative ownership
  (including limited equity cooperative ownership) and fee simple ownership
  (including condominium ownership), for occupancy by the eligible families.
  (5) The term `Indian housing authority' has the meaning given such term
  in section 3(b)(11) of the United States Housing Act of 1937.
  (6) The term `lower income family' has the meaning given such term in
  section 3(b)(2) of the United States Housing Act of 1937.
  (7) The term `public housing agency' has the meaning given such term in
  section 3(b)(6) of the United States Housing Act of 1937.
  (8) The term `recipient' means an applicant approved to receive a grant
  under this title.
  (9) The term `resident council' means any incorporated nonprofit organization
  or association that--
  (A) is representative of the tenants of the housing;
  (B) adopts written procedures providing for the election of officers on
  a regular basis; and
  (C) has a democratically elected governing board, elected by the tenants
  of the housing.
  (10) The term `Secretary' means the Secretary of Housing and Urban
  Development.
  SEC. 117. EXEMPTION- Eligible property covered by a homeownership program
  approved under this subtitle shall not be subject to (a) the Low-Income
  Housing Preservation and Resident Homeownership Act of 1990, or (b)
  the requirements of section 203 of the Housing and Community Development
  Amendments of 1978 applicable to the sale of projects either at foreclosure
  or after acquisition by the Secretary.
  SEC. 118. RELATED NATIONAL HOUSING ACT AMENDMENT- Section 203(b)(9) of
  the National Housing Act is amended by inserting after `Housing Act of
  1961,' the following: `or with respect to a mortgage covering a single
  family home in connection with a homeownership program under title I of
  the Homeownership and Opportunity for People Everywhere Act of 1990,'.
  SEC. 119. IMPLEMENTATION- Not later than 120 days after the date funds
  authorized under this subtitle first become available for obligation, the
  Secretary shall by notice establish such requirements as may be necessary
  to carry out the provisions of this subtitle. Such requirements shall
  be subject to section 553 of title 5, United States Code. The Secretary
  shall issue regulations based on the initial notice before the expiration
  of the eight-month period following the date of the notice.
Subtitle C--Hope for Homeownership Through Nonprofit Organizations
  SEC. 120. PROGRAM AUTHORITY- (a) The Secretary is authorized to make
  implementation grants to enable applicants to carry out homeownership
  programs in accordance with this subtitle. In addition, the Secretary may
  make grants for technical assistance under section 107 of the Housing and
  Community Development Act of 1974 in support of homeownership programs.
  (b) AUTHORITY TO RESERVE HOUSING ASSISTANCE- In connection with a grant
  under this section which will be used for a homeownership program covering an
  occupied eligible property, the Secretary may reserve authority to provide
  assistance under section 8 of the United States Housing Act of 1937 to
  the extent necessary to provide rental assistance for a non-purchasing
  tenant who resides in the property on the date the Secretary approves the
  application for an implementation grant, for use by the tenant in that or
  another property.
  (c) AUTHORIZATION- There are authorized to be appropriated for grants
  under this subtitle $72,000,000 for fiscal year 1991, $195,000,000 for
  fiscal year 1992, and $300,000,000 for fiscal year 1993. Sums appropriated
  pursuant to this subsection shall remain available until expended.
  SEC. 121. IMPLEMENTATION GRANTS- (a) GRANTS- The Secretary is authorized
  to make implementation grants to applicants for the purpose of carrying
  out homeownership programs approved under this subtitle.
  (b) ELIGIBLE ACTIVITIES- Implementation grants may be used for the following
  activities--
  (1) architectural and engineering work;
  (2) acquisition of the property for the purpose of transferring ownership
  to eligible families in accordance with an approved homeownership program;
  (3) rehabilitation of the property covered by the homeownership program,
  in accordance with standards established by the Secretary;
  (4) administrative costs of the applicant and any charges by the applicant
  for developing and carrying out the homeownership program;
  (5) legal fees;
  (6) counseling and training of homebuyers and homeowners under the
  homeownership program;
  (7) defraying costs related to ongoing training needs of the recipient
  that are related to developing and carrying out the homeownership program;
  (8) defraying costs related to relocation of tenants who elect to move;
  (9) defraying costs related to any necessary temporary relocation of
  tenants during rehabilitation; and
  (10) funding of replacement reserves of the property covered by the
  homeownership program.
  (c) MATCHING FUNDING- Each recipient shall assure that at least one-third of
  the total cost of eligible activities under this section is provided from
  non-Federal sources. For purposes of the preceding sentence, non-Federal
  sources may include block grants made available by the Federal government
  to State or local governments on a formula basis. In determining compliance
  with this subsection, a recipient may include the value of such items as
  the Secretary determines to be appropriate, at an amount determined in
  accordance with standards established by the Secretary.
  (d) APPLICATION- (1) An application for an implementation grant shall
  be submitted by an applicant in such form and in accordance with such
  procedures as the Secretary shall establish.
  (2) The Secretary shall require that an application contain at a minimum--
  (A) a request for an implementation grant, specifying the amount of the
  grant requested;
  (B) where section 8 assistance is to be used, (i) a certification from
  the applicant that it has entered into an agreement with a public housing
  agency under which the agency has agreed to apply for and administer any
  necessary section 8 assistance for use under the homeownership program; or
  (ii) an application from a public housing agency for assistance under section
  8 of the United States Housing Act of 1937, specifying the proposed uses
  of such assistance and the period during which the assistance will be needed;
  (C) a description of the qualifications and experience of the applicant
  in providing lower income housing; and where the applicant is a private
  nonprofit organization, a statement from the State or unit of general
  local government endorsing the application;
  (D) a description of the proposed homeownership program, consistent with
  section 122 and the other requirements of this subtitle, (i) specifying
  the activities proposed to be carried out and their estimated costs
  (including an estimated range of acquisition and rehabilitation costs),
  (ii) identifying the area proposed to be served, (iii) demonstrating the
  financial affordability of the program, and (iv) identifying the schedule
  for carrying out the proposed program;
  (E) a description of the types of properties to be covered by the
  homeownership program (identifying the current owners, in the case
  of eligible property as defined in sections 124(3) (A) and (B), and
  demonstrating that it appears feasible to acquire eligible property from
  the owners), and a description of the composition of potential eligible
  families, including family size and income;
  (F) a description of the resources that are expected to be made available
  to provide the matching funding required under subsection (c);
  (G) identification and description of the financing proposed;
  (H) a plan for--
  (i) identifying and selecting eligible families to participate in the
  homeownership program;
  (ii) providing relocation assistance to families who elect to move; and
  (iii) assuring continued affordability by tenants, homebuyers, and homeowners
  in the property; and
  (I) a certification that the applicant will comply with the requirements of
  the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504
  of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975,
  and will affirmatively further fair housing.
  (e) SELECTION CRITERIA- The Secretary shall establish selection criteria
  for assistance under this subtitle, which shall include--
  (1) the ability of the applicant to develop and carry out the proposed
  homeownership program, taking into account the qualifications and experience
  of the applicant and the quality of any related ongoing program of the
  applicant;
  (2) the quality and viability of the proposed homeownership program;
  (3) the extent to which suitable eligible property is available for use
  under the program in the area to be served, and the extent to which the
  types of property expected to be covered by the proposed homeownership
  program are federally owned; and
  (4) whether the property is located in a unit of general local government
  that has an approved Barrier Removal Plan, in accordance with title IV of
  the Homeownership and Opportunity for People Everywhere Act of 1990.
  SEC. 122. OTHER PROGRAM REQUIREMENTS AND LIMITATIONS- (a) HOMEOWNERSHIP
  PROGRAM- A homeownership program under this subtitle shall provide for--
  (1) the recipient to acquire the eligible property and to reimburse
  the seller;
  (2) the eligible family to acquire an ownership interest in, or shares
  representing, the unit from the recipient only if the unit meets housing
  standards established by the Secretary;
  (3) the eligible family to make payments towards the costs of homeownership
  in accordance with the affordability standards set forth in the homeownership
  program;
  (4) the eligible family to make or cause to be made repairs and improvements
  required to (A) correct all defects that pose a substantial danger to
  health and safety within one year, (B) make such repairs and improvements
  to the property as may be necessary to meet housing standards established
  by the Secretary within three years, and (C) permit reasonable periodic
  inspections at reasonable times by the unit of general local government
  or the recipient; and
  (5) the recipient to convey fee simple title to, or shares representing,
  the unit, upon compliance by the family with the requirements of paragraph
  (4) and any other requirements specified by the Secretary.
  (b) PREFERENCES- In selecting eligible families for homeownership, the
  recipient shall give a first preference to otherwise qualified current
  tenants and a second preference to otherwise qualified eligible families who
  have completed participation in the operation bootstrap program authorized
  under section 8(w) of the United States Housing Act of 1937 or another
  economic self-sufficiency program specified by the Secretary.
  (c) COST LIMITATIONS- The Secretary may establish cost limitations on
  eligible activities under this subtitle.
  (d) RESALE BY HOMEOWNERS- (1) A homeowner under a homeownership program
  who has acquired fee simple to, or shares representing, the unit may sell
  its ownership interest in, or shares representing, the unit.
  (2) The homeownership program may establish restrictions on the resale of
  a unit under the program.
  (3) If the sale to the first eligible family is for less than market value,
  the homeownership program shall provide for appropriate restrictions to
  assure that an eligible family may not receive any undue profit. The plan
  shall provide for--
  (A) authorizing the family to retain a portion of the net proceeds of the
  sale on a sliding scale;
  (B) a plan consistent with section 21(a)(4)(D) of the United States Housing
  Act of 1937;
  (C) execution by the initial purchaser of a promissory note equal to the
  difference between the market value and the purchase price, payable to the
  recipient or other entity designated in the homeownership plan, together
  with a mortgage securing the obligation of the note; or
  (D) any other appropriate arrangement that the Secretary determines is
  adequate to prevent undue profit.
  (4) Fifty percent of any portion of the net sales proceeds that may not
  be retained by the homeowner under the plan approved pursuant to paragraph
  (3) shall be paid to the recipient, for use by the recipient for eligible
  activities under this subtitle. The remaining 50 percent of such proceeds
  shall be returned to the Secretary for use under this subtitle.
  (e) PROTECTION OF NON-PURCHASING FAMILIES- (1) No tenant residing in
  a dwelling unit in a property on the date the Secretary approves an
  application for an implementation grant may be evicted by reason of a
  homeownership program approved under this subtitle.
  (2) The recipient shall inform each such tenant that if the tenant decides
  not to purchase a unit, or is not qualified to do so, the recipient will
  request the public housing agency to offer section 8 assistance to each
  otherwise qualified tenant, for use in that or another property.
  (3) The recipient shall also inform each such tenant that if the tenant
  chooses to move, the recipient will pay relocation assistance in accordance
  with the approved homeownership program.
  SEC. 123. EXCEPTION TO SECTION 8 PREFERENCE- The requirement for giving
  preference to certain categories of eligible families under sections
  8(d)(1)(A) and 8(o)(3) shall not apply to the provision of assistance to
  a family residing in a dwelling unit in an eligible property on the date
  the Secretary approves an application for an implementation grant.
  SEC. 124. DEFINITIONS- For purposes of this title--
  (1) The term `applicant' means (A) a private nonprofit organization,
  or (B) a public agency (including an agency or instrumentality thereof)
  in cooperation with a private nonprofit organization.
  (2) The term `eligible family' means a family or individual who is a lower
  income family and who does not currently own a home.
  (3) The term `eligible property' means (A) a single family property,
  containing no more than four units, owned by the Secretary, the Secretary
  of Veterans Affairs, the Secretary of Agriculture, the Resolution Trust
  Corporation, a State or local government, or a public housing agency
  (including an Indian housing authority), (B) a multifamily property,
  containing five or more units, that is owned by any public entity specified
  in subparagraph (A), other than by the Secretary or a public housing agency,
  or (C) manufactured housing owned by the Secretary.
  (4) The term `homeownership program' means a program providing for
  acquisition by eligible families of ownership interests in, or shares
  representing, units in an eligible property under any arrangement determined
  by the Secretary to be appropriate, such as cooperative ownership (including
  limited equity cooperative ownership) and fee simple ownership (including
  condominium ownership), for occupancy by the eligible families.
  (5) The term `Indian housing authority' has the meaning given such term
  in section 3(b)(11) of the United States Housing Act of 1937.
  (6) The term `lower income family' has the meaning given such term in
  section 3(b)(2) of the United States Housing Act of 1937.
  (7) The term `public housing agency' has the meaning given such term in
  section 3(b)(6) of the United States Housing Act of 1937.
  (8) The term `recipient' means an applicant approved to receive a grant
  under this title.
  (9) The term `Secretary' means the Secretary of Housing and Urban
  Development.
  SEC. 125. IMPLEMENTATION- Not later than 120 days after the date funds
  authorized under this subtitle first become available for obligation, the
  Secretary shall by notice establish such requirements as may be necessary
  to carry out the provisions of this subtitle. Such requirements shall
  be subject to section 553 of title 5, United States Code. The Secretary
  shall issue regulations based on the initial notice before the expiration
  of the eight-month period following the date of the notice.
TITLE II--PRESERVATION OF LOW-INCOME HOUSING AND RESIDENT HOMEOWNERSHIP
  SEC. 201. PRESERVATION OF LOW-INCOME HOUSING AND RESIDENT HOMEOWNERSHIP-
  (a) Subtitles A and B of the Emergency Low Income Housing Preservation
  Act of 1987 are amended to read as follows:
`TITLE II--PRESERVATION OF LOW-INCOME HOUSING AND RESIDENT HOMEOWNERSHIP
`Subtitle A--Short Title
`SHORT TITLE
  `SEC. 201. This title may be cited as the `Low-Income Housing Preservation
  and Resident Homeownership Act of 1990' (12 U.S.C. 1715l note).
`Subtitle B--Prepayment of Mortgages Insured Under the National Housing Act
and Resident Homeownership
`GENERAL PREPAYMENT LIMITATION
  `SEC. 221. An owner of eligible low-income housing may prepay, and a
  mortgagee may accept prepayment of, a mortgage on such housing only in
  accordance with a plan of action approved by the Secretary under this
  subtitle. An insurance contract with respect to eligible low-income housing
  may be terminated pursuant to section 229 of the National Housing Act
  (`voluntary termination') only in accordance with a plan of action approved
  by the Secretary under this subtitle. A mortgagee may not foreclose the
  mortgage on, or acquire by deed in lieu of foreclosure, any eligible
  low-income housing project without the approval of the Secretary.
`NOTICE OF INTENT
  `SEC. 222. (a) FILING WITH THE SECRETARY- An owner of eligible low-income
  housing that intends to transfer the housing in connection with a
  homeownership program, seek incentives, or seek prepayment or voluntary
  termination incentives shall file with the Secretary a notice indicating this
  intent in such form and manner as the Secretary shall prescribe. An owner
  shall not be eligible to file a notice of intent under this subsection if:
  `(1) the mortgage covering the housing falls into default on or after the
  effective date of the `Homeownership and Opportunity for People Everywhere
  Act of 1990'; or
  `(2)(A) the mortgage covering the housing fell into default before, but
  is current as of, that date; and
  `(B) the owner does not agree to recompense, in such amount as the Secretary
  may determine, the appropriate Insurance Fund for any losses sustained
  by the Fund as a result of any work-out or other arrangement agreed to by
  the Secretary and the owner with respect to the defaulted mortgage.
  `(b) FILING WITH THE STATE OR LOCAL GOVERNMENT; COPY TO TENANTS- The
  owner shall simultaneously file the notice of intent with the office of
  the chief executive officer of the appropriate State or local government
  for the jurisdiction within which the housing is located, and advise the
  tenants of the housing.
`INFORMATION FROM THE SECRETARY; PLAN OF ACTION
  `SEC. 223. (a) INFORMATION FROM THE SECRETARY-
  `(1) TO OWNER- Within six months of receipt of a notice of intent under
  section 222 the Secretary shall provide the owner with such information as
  the owner needs to prepare a plan of action. This information shall include--
  `(A) an appraisal made in accordance with standards and procedures
  established by the Secretary by an appraiser selected by the Secretary; and
  `(B) a description of the Federal incentives authorized under sections 224
  and 226 of this title (including in the case of a resident homeownership
  program, the maximum assistance that can be provided under section 224).
  `(2) TO TENANTS- The Secretary shall make the information referred to
  in paragraph (1), as well as other information related to the rights and
  opportunities of the tenants, available to the tenants of the housing.
  `(b) SUBMISSION OF PLAN OF ACTION-
  `(1) TIME FOR SUBMISSION- Within six months of receipt of the information
  from the Secretary under subsection (a), the owner may submit the plan
  of action to the Secretary in such form and manner as the Secretary shall
  prescribe.
  `(2) COPIES OF PLAN- If the owner submits a plan to the Secretary under
  paragraph (1), the owner shall also submit a copy to the tenants of the
  housing. The owner shall simultaneously submit the plan of action to the
  office of the chief executive officer of the appropriate State or local
  government for the jurisdiction within which the housing is located. An
  appropriate agency of such State or local government shall review the plan
  and advise the tenants of the housing of any programs that are available
  to assist the tenants in carrying out the purposes of this title.
  `(3) FAILURE TO SUBMIT A PLAN- If the owner does not submit a plan of action
  to the Secretary within the six-month period referred to in paragraph (1),
  the owner may not submit another notice of intent under section 222 for
  six additional months.
  `(c) CONTENTS- The plan of action shall include--
  `(1) the intention of the owner to transfer the housing in connection with
  a resident homeownership program developed under this subtitle;
  `(2) the intention of the owner to prepay the mortgage or voluntarily
  terminate the mortgage insurance; or
  `(3) the request of the owner for incentives, including--
  `(A) a description of any proposed changes in the status or terms of the
  mortgage or regulatory agreement;
  `(B) a description of any assistance that could be provided by State or
  local government agencies, as determined by prior consultation between
  the owner and the agencies;
  `(C) a description of any proposed changes in the low-income affordability
  restrictions;
  `(D) a description of any change in ownership that is related to prepayment
  or voluntary termination;
  `(E) an assessment of the effect of the proposed changes on existing
  tenants; and
  `(F) any other information that the Secretary determines is necessary to
  achieve the purposes of this title.
  `(d) REVISIONS- The owner may from time to time revise and amend the plan
  of action as may be necessary to obtain approval of the plan under this
  subtitle. The owner shall submit any revision to the Secretary and to the
  tenants of the housing.
`RESIDENT HOMEOWNERSHIP
  `SEC. 224. (a) APPROVAL- The Secretary is authorized to approve a plan
  of action involving a resident homeownership program if the plan and the
  program meet the requirements of this subtitle.
  `(b) RESIDENT COUNCIL- Where an owner has filed a notice of intent under
  section 222, the tenants of the housing may organize a resident council for
  the purpose of developing a resident homeownership program in accordance
  with standards established by the Secretary. The resident council shall work
  with a public or private nonprofit organization or a public body (including
  an agency or instrumentality thereof). Such organization or public body
  shall have experience that will enable it to help the tenants consider
  their options and to develop the capacity necessary to own and manage the
  housing, where appropriate, and shall be approved by the Secretary.
  `(c) REQUEST FOR VOUCHER ASSISTANCE- Within 60 days of submission of a plan
  of action by the owner under section 223 that the Secretary determines
  is substantially complete, a voucher or certificate under section 8 of
  the United States Housing Act of 1937 shall be issued to each tenant of
  the housing who requests such assistance and qualifies as a lower income
  family or person, for use in any unit meeting program requirements other
  than a unit in that project. The Secretary shall allocate assistance
  for certificates or vouchers under section 8 to ensure that sufficient
  resources are available for this purpose.
  `(d) REQUEST FOR ASSISTANCE- If, within 12 months (or a longer period
  authorized by the Secretary) from the date of the submission of a plan of
  action that the Secretary determines is substantially complete, 75 percent
  or more of the residents of the housing who do not receive a voucher or
  certificate as provided under subsection (c), and who comprise at least
  50 percent of the units in the project, indicate a desire to negotiate
  with the owner to purchase the project, the resident council may apply
  to the Secretary, on behalf of the residents, for assistance under this
  subtitle. The Secretary may establish a different standard for determining
  sufficient tenant interest, where appropriate, taking into account such
  factors as the number of vacant units in the project, the strength of
  commitment of the tenants, and the ability of the resident council.
  `(e) AMOUNT OF ASSISTANCE- The Secretary may provide assistance (in the
  form of a grant) for the homeownership program (for which appropriations
  are hereby authorized) for each unit in the housing in an amount, as
  determined by the Secretary, that is no greater than the present value
  of the total of the projected published fair market rents for existing
  housing established by the Secretary under section 8(c) of the United
  States Housing Act of 1937 for the next 10 years.
  `(f) ELIGIBLE ACTIVITIES- As approved by the Secretary, assistance provided
  under subsection (e) may be used for the cost of acquisition of the housing
  from the owner, rehabilitation of the housing, operating and replacement
  reserves, training for the resident council, homeownership counseling and
  training, the fees for the nonprofit entity or public body working with
  the resident council, and costs related to relocation of tenants who elect
  to move. The amount used for acquisition of the housing from the owner may
  not exceed the appropriate market value established under the appraisal,
  taking into account the condition of the property at transfer, and the
  cost of any appraisal under this title paid for by the owner.
  `(g) CONDITIONS ON ACQUISITION-
  `(1) APPROVAL OF METHOD OF CONVERSION- The Secretary shall approve the method
  for converting the housing to homeownership, which may involve acquisition
  of ownership interests in, or shares representing, the units in a project
  under any arrangement determined by the Secretary to be appropriate, such
  as cooperative ownership (including limited equity cooperative ownership)
  and fee simple ownership (including condominium ownership).
  `(2) REQUIRED CONDITIONS- The Secretary shall require that the form of
  homeownership impose appropriate conditions, including conditions to
  assure that--
  `(A) the number of initial owners that are very low-income, lower income,
  or moderate-income persons at initial occupancy meet standards required
  or approved by the Secretary;
  `(B) occupancy charges payable by the owners meet requirements established
  by the Secretary;
  `(C) the aggregate incomes of initial and subsequent owners and other
  sources of funds for the project are sufficient to permit occupancy charges
  to cover the full operating costs of the housing and any debt service; and
  `(D) each initial owner occupies the unit it acquires.
  `(3) USE OF PROCEEDS FROM SALES TO ELIGIBLE FAMILIES- The entity that
  transfers ownership interests in, or shares representing, units to eligible
  families, or another entity specified in the approved application, may use
  50 percent of the proceeds, if any, from the initial sale for costs of the
  homeownership program, including improvements to the project, operating and
  replacement reserves for the project, additional homeownership opportunities
  in the project; and other project-related activities approved by the
  Secretary. The remaining 50 percent of such proceeds shall be returned to
  the Secretary for use under section 224.
  `(4) RESTRICTIONS ON RESALE BY HOMEOWNERS- (A) A homeowner under a
  homeownership program may transfer the homeowner's ownership interest in,
  or shares representing, the unit.
  `(B) The homeownership program may establish restrictions on the resale
  of a unit under the program.
  `(C) If the sale to the first eligible family is for less than market value,
  the homeownership program shall provide for appropriate restrictions to
  assure that an eligible family may not receive any undue profit. The plan
  shall provide for--
  `(i) authorizing the family to retain a portion of the net proceeds of
  the sale on a sliding scale over a 10-year period;
  `(ii) a plan consistent with section 21(a)(4)(D) of the United States
  Housing Act of 1937;
  `(iii) execution by the initial purchaser of a promissory note equal to
  the difference between the market value and the purchase price, payable
  to the recipient or other entity designated in the homeownership plan,
  together with a mortgage securing the obligation of the note; or
  `(iv) any other appropriate arrangement that the Secretary determines is
  adequate to prevent undue profit for at least 10 years.
  `(D) Fifty percent of any portion of the net sales proceeds that may not be
  retained by the homeowner under the plan approved pursuant to subparagraph
  (C) shall be paid to the entity that transferred ownership interests in, or
  shares representing, units to eligible families, or another entity specified
  in the approved application, for use for costs of the homeownership program,
  including improvements to the project, operating and replacement reserves
  for the project, additional homeownership opportunities in the project; and
  other project-related activities approved by the Secretary. The remaining
  50 percent of such proceeds shall be returned to the Secretary for use
  under section 224.
  `(5) PROTECTION OF NON-PURCHASING FAMILIES- (A) No tenant residing in a
  dwelling unit in a property on the date the Secretary approves a plan of
  action may be evicted by reason of a homeownership program approved under
  this subtitle.
  `(B) The resident council shall inform each such tenant that if the tenant
  decides not to purchase a unit, or is not qualified to do so, the council
  will request the public housing agency to offer section 8 assistance to
  each otherwise qualified tenant, for use in that or another property. The
  requirement for giving preference to certain categories of eligible families
  under sections 8(d)(1)(A) and 8(o)(3) of the United States Housing Act of
  1937 shall not apply to the provision of assistance to such families.
  `(C) The resident council shall also inform each such tenant that if
  the tenant chooses to move, the owner will pay relocation assistance in
  accordance with the approved homeownership program.
  `(6) Any entity that assumes, as determined by the Secretary, a mortgage
  covering low-income housing in connection with the acquisition of the
  housing from an owner under this section must comply with any low-income
  affordability restrictions for the remaining term of the mortgage. This
  requirement shall only apply to an entity, such as a cooperative association,
  that, as determined by the Secretary, intends to own the housing on a
  permanent basis.
  `(h) APPROVAL OF PLAN OF ACTION INVOLVING HOMEOWNERSHIP- Where the
  Secretary determines that the plan of action submitted by the owner and
  the resident homeownership program meet the requirements of this subtitle
  and are feasible, the Secretary shall approve the plan of action.
`PREPAYMENT AND VOLUNTARY TERMINATION
  `SEC. 225. Where the plan of action submitted by the owner under section
  223 indicates an intent to prepay the mortgage or voluntarily terminate
  the mortgage insurance, the Secretary shall inform the owner that the
  Secretary will approve the plan of action if--
  `(1)(A) the 24-month period from the filing of the plan of action under
  section 223(b) that the Secretary determines is substantially complete,
  during which the tenants of the housing have an opportunity to purchase,
  has ended, or (B) where another program providing for resident management
  or homeownership is involved, (i) the deadline under section 224(d) for
  tenants to indicate a desire to negotiate with the owner to purchase the
  property has passed and the tenants have not indicated such a desire, or
  (ii) the tenants have indicated they do not have a desire to negotiate;
  `(2) the owner--
  `(A) agrees to pay the reasonable moving and related expenses of tenants
  who elect to move in connection with prepayment or voluntary termination
  by the owner;
  `(B) agrees to make a payment to each tenant family for a security deposit
  and related expenses to obtain replacement housing, in an amount equal to
  twice the existing housing fair market rent established under section 8(c)
  of the United States Housing Act of 1937 for the appropriate unit size
  (including adjustments of up to 20 percent, where approved by the Secretary);
  `(C) for each tenant family--
  `(i) agrees to make one or more payments, totaling an amount equal to
  the payment standard for the area under section 8(o) of the United States
  Housing Act of 1937, minus 30 percent of the adjusted income of the tenant,
  multiplied by six; or
  `(ii) agrees to lease a unit in the project to the family for six months,
  charging a rent equal to 30 percent of the adjusted income of the tenant
  family; and
  `(D) provides assurances satisfactory to the Secretary that units will
  be made available to the extent the owner has agreed to lease units to
  families as provided in subparagraph (C)(ii), and that funds have been set
  aside for the purposes specified in subparagraphs (A), (B), and (C)(i),
  including placing the funds in escrow, where required by the Secretary
  (where the Secretary requires an escrow account, the owner shall pay the
  costs of establishing, maintaining, and disbursing the account); and
  `(3) the Secretary has sufficient budget authority to make available a
  voucher or certificate under section 8 of the United States Housing Act
  of 1937 for each tenant that qualifies as a lower income family or person,
  with the assistance to begin six months after the tenant moves.
`INCENTIVES TO EXTEND LOW-INCOME USE
  `SEC. 226. (a) AGREEMENTS BY SECRETARY- After receiving a plan of action
  from an owner of eligible low-income housing, the Secretary may enter
  into such agreements as are necessary to satisfy the criteria for approval
  under section 227.
  `(b) PERMISSIBLE INCENTIVES- Agreements entered into under subsection (a)
  that, by modifications to the existing regulatory agreement or mortgage,
  extend the low-income affordability restrictions through the term of the
  mortgage or, in the case of the prepayment of a mortgage or voluntary
  termination of mortgage insurance, impose, by a recorded instrument,
  low-income affordability restrictions (including the obligations specified
  in the regulatory agreement) through a period equivalent to the term of
  the original mortgage may include one or more of the following incentives
  that the Secretary, after taking into account local market conditions,
  determines to be necessary to achieve the purposes of this title--
  `(1) an increase in the allowable distribution or other measures to increase
  the rate of return on the investment;
  `(2) revisions to the method of calculating equity;
  `(3) increased access to residual receipts accounts or excess replacement
  reserves;
  `(4) provision of insurance for a second mortgage under section 241 (d)
  or (f) of the National Housing Act;
  `(5) an increase in the rents permitted under an existing contract under
  section 8 of the United States Housing Act of 1937, or (subject to the
  availability of amounts provided in appropriation Acts) additional assistance
  under section 8 or an extension of any project-based assistance attached
  to the housing (the applicable fair market rent limitation for purposes
  of this paragraph shall be 90 percent of the published fair market rent);
  `(6) other actions, authorized in other provisions of law, to facilitate
  a transfer or sale of the project to a qualified non-profit organization,
  limited equity cooperative, public agency or other entity acceptable to
  the Secretary; and
  `(7) other incentives authorized in law.
  `(c) MAXIMUM AMOUNT OF PERMISSIBLE INCENTIVES- The total economic value of
  incentives that the Secretary may approve may not exceed the lesser of (1)
  the discounted present value, over the remaining life of the mortgage, of
  the difference between the current project rental income and 90 percent of
  the published fair market rents for existing housing for units of comparable
  size established by the Secretary under section 8(c) of the United States
  Housing Act of 1937, or (2) 80 percent of the appropriate market value
  established under the appraisal (see section 223(a)), minus the amount of
  any outstanding principal balances under mortgages insured by the Secretary.
  `(d) The Secretary shall provide a report to the Congress within 90 days of
  the enactment of the `Homeownership and Opportunity for People Everywhere
  Act of 1990', evaluating the availability, quality, and reliability of
  data to measure the accessibility of decent, affordable housing in all
  areas where properties are eligible to submit a notice of intent to prepay
  under section 222. To prevent payment of windfall profits, the Secretary
  may make available incentive payments only to owners in those rental
  markets where there is an adequate supply of decent, affordable housing,
  if the Secretary determines that adequate data can be obtained to permit
  objective and fair implementation.
`CRITERIA FOR APPROVAL OF PLAN OF ACTION INVOLVING INCENTIVES
  `SEC. 227. (a) The Secretary may approve a plan of action submitted under
  section 223(c)(3) that includes incentives only (1) after the 24-month
  period under section 223(e) has ended, or (2) where incentives including a
  transfer or sale in accordance with section 226(b)(7) is involved, after
  (A) the expiration of the deadline under section 224(d) for tenants to
  indicate a desire to negotiate with the owner to purchase the property
  and the tenants have not indicated such a desire, or (B) the tenants have
  indicated they do not have a desire to negotiate and the plan of action
  involves resident management or homeownership.
  `(b) The Secretary may approve a plan only upon finding that--
  `(1) due diligence has been given to ensuring that the package of incentives
  is, for the Federal government, the least costly alternative that is
  consistent with the full achievement of the purposes of this title;
  `(2) binding commitments have been made to ensure that--
  `(A) the housing will be retained as housing affordable for very low-income
  families or persons, lower income families or persons, and moderate-income
  families or persons for the remaining term of the mortgage;
  `(B) throughout such period, adequate expenditures will be made for
  maintenance and operation of the housing;
  `(C) current tenants will not be involuntarily displaced (except for
  good cause);
  `(D) any increase in rent contributions for current tenants will be to
  a level that does not exceed 30 percent of the adjusted income of the
  tenant or the published existing fair market rent for comparable housing
  established under section 8(c) of the United States Housing Act of 1937,
  whichever is lower (current tenants shall not qualify for a reduction in
  rent contributions by reason of this subparagraph);
  `(E)(i) any resulting increase in rents for current tenants (except for
  increases made necessary by increased operating costs)--
  `(I) shall be phased in equally over a period of not less than 3 years,
  if such increase is 30 percent or more; and
  `(II) shall be limited to not more than 10 percent per year if such increase
  is more than 10 percent but less than 30 percent; and
  `(ii) assistance under section 8 of the United States Housing Act of 1937
  shall be provided if necessary to mitigate any adverse effect on current
  income-eligible tenants; and
  `(F)(i) rents for units becoming available to new tenants shall be at levels
  approved by the Secretary that will ensure, to the extent practicable,
  that the units will be available and affordable to the same proportions
  of very low-income families or persons, lower income families or persons,
  and moderate income families or persons (including families or persons
  whose incomes are 95 percent or more of area median income) as resided in
  the housing as of January 1, 1987 (based on the area median income limits
  established by the Secretary in February, 1987), or the date the plan of
  action is approved, whichever date results in the highest proportion of
  very low-income families, except that this limitation shall not prohibit a
  higher proportion of very low-income families from occupying the housing; and
  `(ii) in approving rents under this paragraph, the Secretary shall take
  into account any additional incentives provided under this subtitle and
  shall make provision for such annual rent adjustments as may be made
  necessary by future reasonable increases in operating costs;
  `(3) no incentives under section 226 will go into effect until the Secretary
  determines the project meets housing standards established by the Secretary,
  except that incentives under section 226(b)(6) and other incentives designed
  to correct deficiencies in the project may be provided; and
  `(4) the total equivalent value of the incentives package does not exceed
  the limits established under section 226(c).
  `(c) SECTION 8 RENTAL ASSISTANCE- When providing rental assistance under
  section 8, the Secretary may enter into a contract with an owner, contingent
  upon the future availability of appropriations for the purpose of renewing
  expiring contracts for rental assistance as provided in appropriations Acts,
  to extend the term of such rental assistance for such additional period
  or periods as is necessary to carry out an approved plan of action. The
  contract and the approved plan of action shall provide that, if the Secretary
  is unable to extend the term of such rental assistance or is unable to
  develop a revised package of incentives providing benefits to the owner
  comparable to those received under the original approved plan of action,
  the Secretary, upon the request of the owner, shall take the following
  actions (subject to the limitations under the following paragraphs):
  `(1) Modify the binding commitments made pursuant to subsection (b) that
  are dependent on such rental assistance.
  `(2) Terminate the plan of action and any implementing use agreements or
  restrictions, but only if the owner agrees in writing to take the actions
  specified in the plan to ensure that any tenants displaced are relocated
  to affordable housing.
At least 30 days before making a request under the preceding sentence,
an owner shall notify the Secretary of the owner's intention to submit the
request. The Secretary shall have a period of 90 days following receipt of
such notice to take action to extend the rental assistance contract and to
continue the binding commitments under subsection (b).
  `(d) RELOCATION OF DISPLACED TENANTS- Any plan of action that includes
  incentives shall specify actions that the Secretary and the owner shall
  take to ensure that any tenants displaced as a result of modifications
  taken pursuant to subsection (c) are relocated to affordable housing.
  `(e) NEW APPRAISAL- The Secretary may approve a plan of action that includes
  incentives only based on an appraisal conducted in accordance with section
  223(a)(1)(A) that is no more than one year old.
`CONSULTATIONS WITH OTHER INTERESTED PARTIES
  `SEC. 228. The Secretary shall confer with any appropriate State or local
  government agency to confirm any State or local assistance that is available
  to achieve the purposes of this title and shall give consideration to the
  views of any such agency when making determinations under this subtitle. The
  Secretary shall also confer with appropriate interested parties that the
  Secretary believes could assist in the development of a plan of action
  that best achieves the purposes of this subtitle.
`DEFINITIONS
  `SEC. 229. For purposes of this subtitle:
  `(1) The term `eligible low-income housing' means any housing financed by
  a loan or mortgage--
  `(A) that is--
  `(i) insured or held by the Secretary under section 221(d)(3) of the
  National Housing Act and assisted under section 101 of the Housing and
  Urban Development Act of 1965 or section 8 of the United States Housing
  Act of 1937;
  `(ii) insured or held by the Secretary and bears interest at a rate
  determined under the proviso of section 221(d)(5) of the National Housing
  Act;
  `(iii) insured, assisted, or held by the Secretary or a State or State
  agency under section 236 of the National Housing Act; or
  `(iv) held by the Secretary and formerly insured under a program referred
  to in clause (i), (ii), or (iii); and
  `(B) that, under regulation or contract in effect before February 5, 1988,
  is or will within two and one-half years become eligible for prepayment
  without prior approval of the Secretary.
  `(2) The term `low-income affordability restrictions' means limits imposed
  by regulation or regulatory agreement on tenant rents, rent contributions,
  or income eligibility in eligible low-income housing.
  `(3) The terms `lower income families or persons' and `very low-income
  families or persons' mean families or persons whose incomes do not exceed
  the respective levels established for lower income families and very
  low-income families, respectively, under section 3(b)(2) of the United
  States Housing Act of 1937.
  `(4) The term `moderate-income families or persons' means families or
  persons whose incomes are between 80 percent and 95 percent of the median
  income for the area, as determined by the Secretary with adjustments for
  smaller and larger families.
  `(5) The term `owner' means the current or subsequent owner or owners of
  eligible low-income housing.
  `(6) The term `Secretary' means the Secretary of Housing and Urban
  Development.
  `(7) The term `resident council' means any incorporated nonprofit
  organization or association that--
  `(A) is representative of the resident of the housing;
  `(B) adopts written procedures providing for the election of officers on
  a regular basis; and
  `(C) has a democratically elected governing board, elected by the residents
  of the housing.
`NOTICE TO TENANTS
  `SEC. 230. Where a provision of this subtitle requires that information or
  material be given to tenants of the housing, the requirement may be met by
  (a) posting a copy of the information or material in readily accessible
  locations within each affected building, or posting notices in each such
  location describing the information or material and specifying a location,
  as convenient to the tenants as is reasonably practical, where a copy may
  be examined, and (b) supplying a copy of the information or material to
  a representative of the tenants.
`APPLICABILITY
  `SEC. 231. The requirements of this subtitle shall apply to any project
  that is eligible low-income housing on or after November 1, 1987.'.
  SEC. 202. RELATED NATIONAL HOUSING ACT AMENDMENTS- (a) Section 241(f)
  of the National Housing Act is amended by--
  (1) in paragraph (1), striking out `section 233 of the Emergency Low Income
  Housing Preservation Act of 1987' and inserting in lieu thereof `section
  229 of the Low-Income Housing Preservation and Resident Homeownership Act
  of 1990';
  (2) in paragraph (2)(A), striking out `90' and inserting in lieu thereof
  `80'; and
  (3) in paragraph (2)(A), striking out `section 225(b) of the Emergency Low
  Income Housing Preservation Act of 1987' and inserting in lieu thereof
  `section 227(b) of the Low-Income Housing Preservation and Resident
  Homeownership Act of 1990'.
  (b) Section 250(b) of such Act is amended to read as follows:
  `(b) A mortgagee may not foreclose the mortgage on, or acquire by deed in
  lieu of foreclosure, any project to which subsection (a) of this section
  applies, without the approval of the Secretary.'.
  (c) Section 250(c) of such Act is hereby repealed, and section 250(d)
  is redesignated as section 250(c).
  SEC. 203. RELATED UNITED STATES HOUSING ACT OF 1937 AMENDMENTS- (a) The
  first sentence of section 8(o)(3) of the United States Housing Act of 1937,
  as amended by section 101 of this Act, is amended by--
  (1) striking `or'; and
  (2) inserting the following before the period: `, or (E) a family residing
  in a homeownership project as provided by the Low-Income Housing Preservation
  and Resident Homeownership Act of 1990'.
  (b) Section 8(v)(2) of such Act is amended by striking out `Emergency Low
  Income Housing Preservation Act of 1987' and inserting in lieu thereof
  `Low-Income Housing Preservation and Resident Homeownership Act of 1990'.
  SEC. 204. EXTENSION OF MORATORIUM UNTIL EFFECTIVE DATE OF THIS SECTION-
  Section 203 of the Emergency Low Income Housing Preservation Act of 1987 is
  hereby repealed. This section shall take effect upon enactment of this Act.
  SEC. 205. TRANSITION- Any owner of eligible low-income housing covered by
  the Emergency Low Income Housing Preservation Act of 1987 shall instead be
  subject to the Low-Income Housing Preservation and Resident Homeownership
  Act of 1990 unless the owner has (a) submitted a notice of intent under
  the Emergency Low Income Housing Preservation Act of 1987 before January
  1, 1990, and (b) before the effective date of this title (1) has received
  approval from the Secretary of Housing and Urban Development to prepay a
  mortgage or voluntarily terminate mortgage insurance pursuant to a plan of
  action approved under section 225(a) of the Emergency Low Income Housing
  Preservation Act of 1987, and (2)(A) has executed and recorded a use
  restriction or regulatory agreement modification under a plan of action
  approved by the Secretary under section 225(b) of such Act; or (B) entered
  into a regulatory agreement modification pursuant to section 228 of such Act.
  SEC. 206. EFFECTIVE DATE- The effective date of this title (other than
  section 204) shall be the effective date of final regulations issued by
  the Secretary.
TITLE III--OTHER HOPE PROGRAMS
  SEC. 301. SHELTER PLUS CARE PROGRAM- (a) Subtitle D of title IV of the
  Stewart B. McKinney Homeless Assistance Act is amended by--
  (1) striking out the heading and inserting in lieu thereof:
`Subtitle D--Supplemental Assistance for Facilities to Assist the Homeless
and Shelter Plus Care Programs
`Part I--Supplemental Assistance for Facilities To Assist the Homeless
Program';
  (2) striking out `subtitle' each place it appears in sections 431, 432,
  433, and 434 of such Act and inserting in lieu thereof `part'; and
  (3) inserting at the end of section 433 of such Act the following:
`Part II--Shelter Plus Care Program
`Subpart 1--Shelter Plus Care: General Requirements
  `SEC. 441. PURPOSE- The purpose of the program authorized under this part
  is to provide rental housing assistance to homeless individuals who are
  seriously mentally ill or have chronic problems with alcohol, other drugs,
  or both, in connection with supportive services funded from sources other
  than this part.
  `SEC. 442. RENTAL HOUSING ASSISTANCE- The Secretary is authorized, in
  accordance with the provisions of this part, to provide rental housing
  assistance under subparts 2, 3, and 4.
  `SEC. 443. SUPPORTIVE SERVICES REQUIREMENTS; MATCHING FUNDING- (a) Each
  recipient shall assure that the amount of budget authority obligated by
  the Secretary for rental housing assistance under this part is supplemented
  with at least an equal amount of funds from other sources. The funds shall
  be used for the provision of supportive services to eligible individuals
  under this part. In calculating the amount of these funds, a recipient
  may include the value of such items determined appropriate by the Secretary.
  `(b) Each recipient shall assure that supportive services appropriate to the
  needs of eligible individuals to be served under its program are provided
  for the full term of the rental housing assistance under subparts 2, 3,
  and 4, as appropriate. Expenditures for supportive services need not be
  made in equal amounts for each year, but may vary depending on the needs
  of the individuals assisted under the program.
  `(c) If the supportive services and funding for the supportive services
  required by this section are not provided, the Secretary may recapture
  any unexpended housing assistance.
  `SEC. 444. APPLICATIONS- (a) An application for rental housing assistance
  under this part shall be submitted by an applicant in such forms and in
  accordance with such procedures as the Secretary shall establish.
  `(b) The Secretary shall require that an application contain at a minimum--
  `(1) a request for housing assistance under subpart 2, 3, or 4, or a
  combination, specifying the number of units requested and the amount of
  necessary budget authority;
  `(2) a description of the size and characteristics of the population of
  eligible individuals;
  `(3) the identity of the proposed service provider or providers (which
  may be, or include, the applicant) and a statement of the qualifications
  of the provider or providers;
  `(4) a description of the supportive services that the applicant proposes
  to assure will be available for eligible individuals;
  `(5) a description of the resources that are expected to be made available
  to provide the supportive services required by section 443;
  `(6) a description of the mechanisms for developing a housing and supportive
  services plan for each individual and for monitoring each individual's
  progress in meeting that plan;
  `(7) assurances satisfactory to the Secretary that the supportive services
  will be provided for the full term of the housing assistance under subpart
  2, 3, or 4, or a combination; and a certification from the applicant that
  it will fund the supportive services itself if the planned resources do
  not become available for any reason;
  `(8) a plan for--
  `(A) in the case of rental housing assistance under subpart 2, providing
  housing assistance;
  `(B) identifying and selecting eligible individuals to participate,
  including a proposed definition of the term `chronic problems with alcohol,
  other drugs, or both';
  `(C) coordinating the provision of housing assistance and supportive
  services;
  `(D) ensuring that the service providers are providing supportive services
  adequate to meet the needs of the individuals served;
  `(E) obtaining participation of eligible individuals who have previously
  not been assisted under programs designed to assist the homeless or have
  been considered not capable of participation in these programs; this plan
  shall specifically address how homeless individuals, as defined in section
  103(a)(2)(C), will be brought into the program;
  `(9) in the case of housing assistance under subpart 3, identification of the
  specific structures that the recipient for rehabilitation and assistance; and
  `(10) in the case of housing assistance under subpart 4, identification
  of the nonprofit entity that will be the owner or lessor of the property,
  and identification of the specific structures in which the nonprofit entity
  proposes to house eligible individuals.
  `SEC. 445. SELECTION- (a) CRITERIA- The Secretary shall establish selection
  criteria for a national competition for assistance under this part, which
  shall include--
  `(1) the ability of the applicant to develop and operate the proposed
  assisted housing and supportive services program, taking into account the
  quality of any ongoing program of the applicant;
  `(2) the need for a program providing housing assistance and supportive
  services for eligible individuals in the area to be served;
  `(3) the quality of the proposed program for providing supportive services
  and housing assistance;
  `(4) the extent to which the proposed funding for the supportive services
  is or will be available;
  `(5) the extent to which the project would meet the needs of the homeless
  individuals proposed to be served by the program;
  `(6) the cost-effectiveness of the proposed program; and
  `(7) such other factors as the Secretary specifies in regulations to be
  appropriate for purposes of carrying out the program established by this
  part in an effective and efficient manner.
  `(b) CONSULTATION WITH HHS- In reviewing the applications, the Secretary
  shall consult with the Secretary of Health and Human Services with respect
  to the supportive services aspects.
  `(c) FUNDING LIMITATION- No more than 10 percent of the assistance made
  available under this part for any fiscal year may be used for programs
  located within any one unit of general local government.
  `SEC. 446. REQUIRED AGREEMENTS- The Secretary may not approve assistance
  under this part unless the applicant agrees--
  `(1) to operate the proposed program in accordance with the provisions of
  this part;
  `(2) to conduct an ongoing assessment of the housing assistance and
  supportive services required by the participants in the program;
  `(3) to assure the adequate provision of supportive services to the
  participants in the program; and
  `(4) to comply with such other terms and conditions as the Secretary may
  establish for purposes of carrying out the program in an effective and
  efficient manner.
  `SEC. 447. TERMINATION OF ASSISTANCE- If an eligible individual who receives
  assistance under this part violates program requirements, the recipient
  may terminate assistance.
  `SEC. 448. DEFINITIONS- For purposes of this part:
  `(1) The term `applicant' means (A) in the case of rental housing assistance
  under subparts 2 and 4, a State, unit of general local government, or Indian
  tribe; and (B) in the case of single room occupancy housing under the section
  8 moderate rehabilitation program under subpart 3, (i) a State, unit of
  general local government, or Indian tribe (that shall be responsible for
  assuring the provision of supportive services and the overall administration
  of the program), and (ii) a public housing agency (that shall be primarily
  responsible for administering the housing assistance under subpart 3).
  `(2) The term `chronic problems with alcohol, other drugs, or both' shall
  have such meaning as proposed by the applicant and approved by the Secretary.
  `(3) The term `eligible individual' means a homeless individual who is
  seriously mentally ill or has chronic problems with alcohol, other drugs,
  or both.
  `(4) The term `Indian tribe' has the meaning given such term in section
  102 of the Housing and Community Development Act of 1974.
  `(5) The term `public housing agency' has the meaning given such term in
  section 3(b)(6) of the United States Housing Act of 1937.
  `(6) The term `recipient' means an applicant approved for participation
  in the program authorized under this part.
  `(7) The term `Secretary' means the Secretary of Housing and Urban
  Development.
  `(8) The term `seriously mentally ill' means having a severe and persistent
  mental or emotional impairment that seriously limits an individual's
  ability to live independently.
  `(9) The term `State' means each of the several States, the District
  of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam,
  American Samoa, the Northern Mariana islands, the Trust Territory of the
  Pacific Islands, and any other territory or possession of the United States.
  `(10) The term `supportive services' means assistance that the Secretary
  determines (A) addresses the special needs of eligible individuals; and
  (B) provides appropriate services or assists such individuals in obtaining
  appropriate services, including health care, mental health services,
  substance and alcohol abuse services, case management services, counseling,
  supervision, education, job training, and other services essential for
  achieving and maintaining independent living. In-patient acute hospital
  care shall not qualify as a supportive service.
  `(11) The term `unit of general local government' has the meaning given such
  term in section 102 of the Housing and Community Development Act of 1974.
  `SEC. 449. AUTHORIZATION OF APPROPRIATIONS- (a) For purposes of the
  housing program under subpart 2 of this part, there are authorized to be
  appropriated $160,800,000 for fiscal year 1991, $167,213,000 for fiscal
  year 1992, and $173,400,000 for fiscal year 1993.
  `(b) For purposes of the housing program under subpart 3 of this part, the
  budget authority available under section 5(c) of the United States Housing
  Act of 1937 for assistance under section 8(e)(2) of such Act is authorized
  to be increased by $49,571,000 on or after October 1, 1990, $54,193,000
  on or after October 1, 1991, and $56,144,000 on or after October 1, 1992.
  `(c) For purposes of the housing program under subpart 4 of this part,
  there are authorized to be appropriated $35,835,000 for fiscal year 1991,
  $37,233,000 for fiscal year 1992, and $38,573,000 for fiscal year 1993.
  `(d) Sums appropriated under this section shall remain available until
  expended.
`Subpart 2--Shelter Plus Care: Homeless Rental Housing Assistance
  `SEC. 451. PURPOSE- The Secretary is authorized to use amounts made
  available under section 449(a) to provide rental housing assistance in
  accordance with the requirements of this subpart.
  `SEC. 452. HOUSING ASSISTANCE- Where necessary to assure that the provision
  of supportive services to individuals is feasible, a recipient may require
  that an individual participating in the program live (a) in a particular
  structure or unit for up to the first two years of participation, and (b)
  within a particular geographic area for the full period of participation
  or the period remaining after the period referred to in subsection (a).
  `SEC. 453. AMOUNT OF ASSISTANCE- The contract with a recipient for assistance
  under this subpart shall be for a term of five years. Each contract shall
  provide that the recipient shall receive aggregate amounts not to exceed
  the appropriate existing housing fair market rent limitation under section
  8(c) of the United States Housing Act of 1937 in effect at the time the
  application is approved. At the option of the recipient and subject to
  the availability of such amounts, the recipient may receive in any year
  (1) up to 25 percent of such amounts or (2) such higher percentage as the
  Secretary may approve upon a demonstration satisfactory to the Secretary
  that the recipient has entered into firm financial commitments to ensure
  that the housing assistance described in the application will be provided
  for the full term of the contract. Any amounts not needed for a year may be
  used to increase the amount available in subsequent years. Each recipient
  shall ensure that the assistance provided by the Secretary, and any amounts
  provided from other sources, are managed so that the housing assistance
  described in the application is provided for the full term of the assistance.
  `SEC. 454. HOUSING STANDARDS AND RENT REASONABLENESS- The Secretary shall
  require that (a) the recipient inspect each unit before any assistance may be
  provided to or on behalf of the individual to determine that the occupancy
  charge for the housing being or to be provided is reasonable and that each
  unit meets housing standards established by the Secretary for the purpose
  of this subpart, and (b) the recipient make at least annual inspections
  of each unit during the contract term. No assistance may be provided for
  a dwelling unit (a) for which the occupancy charge is not reasonable, or
  (b) which fails to meet the housing standards, unless the owner promptly
  corrects the deficiency and the recipient verifies the correction.
  `SEC. 455. TENANT RENT- Each tenant shall pay as rent an amount determined
  in accordance with the provisions of section 3(a)(1) of the United States
  Housing Act of 1937.
  `SEC. 456. ADMINISTRATIVE FEES- The Secretary shall make amounts available
  to pay the entity administering the housing assistance an administrative
  fee in an amount determined appropriate by the Secretary for the costs of
  administering the housing assistance.
`Subpart 3--Shelter Plus Care: Section 8 Moderate Rehabilitation Assistance
for Single Room Occupancy Dwellings
  `SEC. 461. PURPOSE- The Secretary is authorized to use amounts made
  available under section 449(b) of this part only in connection with the
  moderate rehabilitation of single room occupancy housing described in
  section 8(n) of the United States Housing Act of 1937 for occupancy by
  very low-income eligible individuals. However, amounts made available under
  section 449(b) may be used in connection with the moderate rehabilitation
  of efficiency units if the building owner agrees to pay the additional
  cost of rehabilitating and operating the efficiency units.
  `SEC. 462. FIRE AND SAFETY IMPROVEMENTS- Each contract for housing assistance
  payments entered into using the authority provided under section 449(b)
  shall require the installation of a sprinkler system that protects all
  major spaces, hard/wired smoke detectors, and such other fire and safety
  improvements as may be required by State or local law. For purposes of
  this section, the term `major spaces' means hallways, large common areas,
  and other areas specified in local fire, building, or safety codes.
  `SEC. 463. CONTRACT REQUIREMENTS- Each contract for annual contributions
  entered into by the Secretary with a public housing agency to obligate
  the authority made available under section 449(b) shall--
  `(1) commit the Secretary to make the authority available to the public
  housing agency for an aggregate period of 10 years, and require that any
  amendments increasing the authority shall be available for the remainder
  of such 10-year period;
  `(2) provide the Secretary with the option to renew the contract for an
  additional period of 10 years, subject to the availability of authority; and
  `(3) provide that, notwithstanding any other provision of law, first priority
  for occupancy of housing rehabilitated under this subpart 3 shall be given
  to very low-income eligible individuals.
  `SEC. 464. OCCUPANCY- (a) OCCUPANCY AGREEMENT- The occupancy agreement
  between the tenant and the owner shall be for at least one month.
  `(b) VACANCY PAYMENTS- If an eligible individual vacates a dwelling unit
  before the expiration of the occupancy agreement, no assistance payment
  may be made with respect to the unit after the month during which the unit
  was vacated, unless it is occupied by another eligible individual.
  `(c) INAPPLICABILITY OF `OTHER SINGLE PERSON' LIMITATIONS- The limitations
  on the eligibility of other single persons contained in section 3(b)(3)
  of the United States Housing Act of 1937 shall not apply to eligible
  individuals under this subpart.
`Subpart 4--Shelter Plus Care: Section 202 Rental Assistance
  `SEC. 471. PURPOSE- The Secretary is authorized to use amounts made
  available under section 449(c) of this part only in connection with the
  provision of rental housing assistance under section 202(h) of the Housing
  Act of 1959 for very low-income eligible individuals. The contract between
  the Secretary and the recipient shall require the recipient to enter into
  contracts with owners or lessors of housing meeting the requirements of
  section 202 for the purpose of providing such rental housing assistance.
  `SEC. 472. AMOUNT OF ASSISTANCE- The contract with a recipient of assistance
  under this subpart shall be for a term of five years. Each contract shall
  provide that the recipient shall receive aggregate amounts not to exceed
  the appropriate existing housing fair market rent limitation under section
  8(c) of the United States Housing Act of 1937 in effect at the time the
  application is approved. Each recipient shall ensure that the assistance
  provided by the Secretary, and any amounts provided from other sources,
  are managed so that the housing assistance described in the application
  is provided for the full term of the assistance.
  `SEC. 473. HOUSING STANDARDS AND RENT REASONABLENESS- The Secretary shall
  require that (a) the recipient inspect each unit before any assistance may be
  provided to or on behalf of the individual to determine that the occupancy
  charge for the housing being or to be provided is reasonable and that each
  unit meets housing standards established by the Secretary for the purpose
  of this subpart, and (b) the recipient make at least annual inspections
  of each unit during the contract term. No assistance may be provided for
  a dwelling unit (a) for which the occupancy charge is not reasonable, or
  (b) which fails to meet the housing standards, unless the owner or lessor,
  as the case may be, promptly corrects the deficiency and the recipient
  verifies the correction.
  `SEC. 474. ADMINISTRATIVE FEES- The Secretary shall make amounts available to
  pay the nonprofit entity that is the owner or lessor of the housing assisted
  under this subpart an administrative fee in an amount determined appropriate
  by the Secretary for the costs of administering the housing assistance.'.
  (b) Subtitle E of such title is amended to read as follows:
`Subpart E--Miscellaneous
  `SEC. 581. ENVIRONMENTAL REVIEW- The provisions of, and the regulations and
  procedures applicable under, section 104(g) of the Housing and Community
  Development Act of 1974 shall apply to assistance and projects under
  this title.'.
  (c) IMPLEMENTATION- Not later than 120 days after the date funds authorized
  under section 449 of the Stewart B. McKinney Homeless Assistance Act, as
  amended by this Act, first become available for obligation, the Secretary
  shall by notice establish such requirements as may be necessary to carry
  out the provisions of that part. Such requirements shall be subject to
  section 553 of title 5, United States Code. The Secretary shall issue
  regulations based on the initial notice before the expiration of the
  eight-month period following the date of the notice.
  (d) TRANSITION PROVISIONS- Amounts appropriated for use under subtitle
  D of title IV of the Stewart B. McKinney Homeless Assistance Act, as it
  existed immediately before the date of enactment of this Act, that are or
  become available for obligation shall be available for use under part II
  of subtitle D of title IV of the McKinney Act, as amended by this Act.
  (e) TABLE OF CONTENTS- The table of contents of the Stewart B. McKinney
  Homeless Assistance Act is amended by striking out the items relating to
  subtitles D and E of title IV and inserting in lieu thereof the following:
`Subtitle D--Supplemental Assistance for Facilities to Assist the Homeless
and Shelter Plus Care Programs
`part i--supplemental assistance for facilities to assist the homeless
`Sec. 431. Definitions.
`Sec. 432. Supplemental assistance.
`Sec. 433. Regulations.
`Sec. 434. Authorization of appropriations.
`part ii--shelter plus care
`Subpart 1--Shelter Plus Care: General Requirements
`Sec. 441. Purpose.
`Sec. 442. Rental housing assistance.
`Sec. 443. Supportive services requirements; matching funding.
`Sec. 444. Applications.
`Sec. 445. Selection.
`Sec. 446. Required agreements.
`Sec. 447. Termination of assistance.
`Sec. 448. Definitions.
`Sec. 449. Authorization of appropriations.
`Subpart 2--Shelter Plus Care: Homeless Rental Housing Assistance
`Sec. 451. Purpose.
`Sec. 452. Housing assistance.
`Sec. 453. Amount of assistance.
`Sec. 454. Housing standards and rent reasonableness.
`Sec. 455. Tenant rent.
`Sec. 456. Administrative fees.
`Subpart 3--Shelter Plus Care: Moderate Rehabilitation Assistance for Single
Room Occupancy Dwellings
`Sec. 461. Purpose.
`Sec. 462. Fire and safety improvements.
`Sec. 463. Contract requirements.
`Sec. 464. Occupancy.
`Subpart 4--Section 202 rental assistance
`Sec. 471. Purpose.
`Sec. 472. Amount of assistance.
`Sec. 473. Housing standards and rent reasonableness.
`Sec. 474. Administrative fees.
`Subtitle E--Miscellaneous
`Sec. 481. Environmental review.'.
  SEC. 302. HOPE FOR ELDERLY INDEPENDENCE- (a) PURPOSE- The purpose of this
  section is to establish a demonstration program to test the effectiveness
  of combining housing vouchers and supportive services to assist frail
  elderly individuals to continue to live independently. The demonstration
  period shall be five years.
  (b) HOUSING VOUCHER ASSISTANCE- In connection with this demonstration, the
  Secretary may enter into contracts with public housing agencies to provide
  housing assistance under the voucher program authorized under section 8(o)
  of the United States Housing Act of 1937. A public housing agency may not
  require that a frail elderly individual live in a particular structure
  or unit, but may require that the individual live within a particular
  geographic area, as a condition of participation, where necessary to assure
  that the provision of supportive services is feasible. At the end of the
  demonstration period, the public housing agency shall give each frail
  elderly individual the option to continue to receive assistance under the
  housing voucher program of the agency.
  (c) SUPPORTIVE SERVICES REQUIREMENTS; MATCHING FUNDING-
  (1) FEDERAL, PHA AND INDIVIDUAL CONTRIBUTIONS- The amount estimated by
  the public housing agency and approved by the Secretary as necessary to
  provide the supportive services for the demonstration period shall be
  funded as follows:
  (A) the Secretary shall provide 40 percent, using amounts appropriated
  under this section;
  (B) the public housing agency shall assure the provision of at least 50
  percent from sources other than under this section; and
  (C) notwithstanding any other provision of law, each frail elderly
  individual shall pay 10 percent of the costs of the supportive services
  the individual receives.
  (2) PROVISION OF SERVICES FOR ENTIRE DEMONSTRATION- Each public housing
  agency shall assure that supportive services appropriate to the needs of the
  frail elderly individuals to be served under this demonstration are provided
  throughout the demonstration period. Expenditures for supportive services
  need not be made in equal amounts for each year, but may vary depending on
  the needs of the frail elderly individuals assisted under this section. A
  public housing agency may use up to 20 percent of the Federal assistance
  provided for supportive services in each year of this demonstration and any
  amounts from any prior year in which the public housing agency did not use
  20 percent of the available Federal assistance. Notwithstanding any other
  provision of law, eligibility for supportive services shall be limited to
  individuals who are receiving housing assistance under this section.
  (3) CALCULATION OF THE MATCH- In determining compliance with paragraph
  (1)(B), an agency may include the value of such items as the Secretary
  determines to be appropriate, which may include the salary paid to staff
  to provide supportive services.
  (d) APPLICATIONS- An application under this section shall request
  both housing voucher and supportive services assistance, and shall be
  submitted by a public housing agency in such form and in accordance with
  such procedures as the Secretary shall establish. The Secretary shall
  require that an application contain at a minimum--
  (1) an application for voucher assistance under section 8(o) of the United
  States Housing Act of 1937;
  (2) a description of the size and characteristics of the population of
  frail elderly individuals and of their housing and supportive services needs;
  (3) a description of the proposed method of determining whether an
  individual qualifies as a frail elderly individual (specifying any additional
  eligibility requirements proposed by the agency), and of selecting frail
  elderly individuals to participate;
  (4) a statement that the public housing agency will create a professional
  assessment committee or will work with another entity which will assist
  the public housing agency in identifying and providing only those services
  that each frail elderly individual needs to remain living independently;
  (5) a description of the mechanisms for developing housing and supportive
  services plans for each individual and for monitoring the individual's
  progress in meeting that plan;
  (6) the identity of the proposed service provider and a statement of its
  qualifications;
  (7) a description of the supportive services the public housing agency
  proposes to make available for the frail elderly individuals to be served,
  the estimated costs of such services, a description of the resources that
  are expected to be made available to cover the portion of the costs required
  by subsection (c)(3);
  (8) assurances satisfactory to the Secretary that the supportive services
  will be provided for the demonstration period;
  (9) the plan for coordinating the provision of voucher assistance and
  supportive services;
  (10) a description of how the public housing agency will ensure that the
  service providers are providing supportive services, at a reasonable cost,
  adequate to meet the needs of the individuals to be served;
  (11) a plan for continuing supportive services to frail elderly
  individuals that continue to receive voucher assistance after the end of
  the demonstration period; and
  (12) a statement that the application has been developed in consultation
  with the area agency on aging under title III of the Older American Act
  and that the public housing agency will periodically consult with the area
  agency during the demonstration.
  (e) SELECTION-
  (1) CRITERIA- The Secretary shall establish selection criteria for a
  national competition for assistance under this section, which shall include--
  (A) the ability of the public housing agency to develop and operate the
  proposed housing voucher and supportive services program;
  (B) the need for a program providing both housing assistance and supportive
  services for frail elderly individuals in the area to be served;
  (C) the quality of the proposed program for providing supportive services;
  (D) the extent to which the proposed funding for the supportive services
  is or will be available;
  (E) the extent to which the program would meet the needs of the frail
  elderly individuals proposed to be served by the program; and
  (F) such other factors as the Secretary specifies to be appropriate for
  purposes of carrying out the demonstration program established by this
  section in an effective and efficient manner.
  (2) CONSULTATION WITH HHS- In reviewing the applications, the Secretary
  shall consult with the Secretary of Health and Human Services with respect
  to the supportive services aspects.
  (3) FUNDING LIMITATIONS- No more than 10 percent of the assistance made
  available under this section may be used for programs located within any
  one unit of general local government.
  (f) REQUIRED AGREEMENTS- The Secretary may not approve any assistance for
  any program under this section unless the public housing agency agrees--
  (1) to operate the proposed program in accordance with the program
  requirements established by the Secretary;
  (2) to conduct an ongoing assessment of the voucher assistance and supportive
  services required by each frail elderly individual participating in the
  program;
  (3) to assure the adequate provision of supportive services, at a reasonable
  cost, to each frail elderly individual participating in the program; and
  (4) to comply with such other terms and conditions as the Secretary may
  establish for purposes of carrying out the program in an effective and
  efficient manner.
  (g) DEFINITIONS- For purposes of this section:
  (1) The term `frail elderly individual' means an individual who, or a family
  where each individual, is at least 62 years old, is eligible to receive
  a voucher under the first sentence of section 8(o)(3) of the U.S. Housing
  Act of 1937, and is unable to perform at least three activities of daily
  living adopted by the Secretary for the purposes of this program. Public
  housing agencies may establish additional eligibility requirements based
  on the standards in local service programs.
  (2) The term `professional assessment committee' means a group of at least
  three persons appointed by a public housing agency which shall include at
  least one qualified medical professional and other persons professionally
  competent to appraise the functional abilities of the frail elderly in
  relation to the performance of activities of daily living.
  (3) The term `public housing agency' has the meaning given such term in
  section 3(b)(6) of the United States Housing Act of 1937. The term includes
  an Indian Housing Authority, as defined in section 3(b)(11) of such Act.
  (4) The term `Secretary' means the Secretary of Housing and Urban
  Development.
  (5) The term `supportive services' means assistance that the Secretary
  determines (A) addresses the special needs of frail elderly individuals; and
  (B) provides appropriate supportive services or assists such individuals
  in obtaining appropriate services, including personal assistance with
  activities of daily living, case management services, counseling,
  supervision, and other services essential for achieving and maintaining
  independent living. Supportive services shall not include medical services,
  as determined by the Secretary.
  (h) REPORT- Not later than two years after the termination of the
  demonstration period under this section, the Secretary shall submit to
  Congress a report evaluating the effectiveness of the demonstration.
  (i) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to carry out the Secretary's responsibilities for supportive services under
  this demonstration, $10,000,000 to become available in fiscal year 1991,
  and remain available until expended.
  (j) IMPLEMENTATION- Not later than 120 days after the date funds authorized
  for the demonstration under this section first become available for
  obligation, the Secretary shall by notice establish such requirements as
  may be necessary to carry out the demonstration program authorized under
  this section.
  SEC. 303. (a) OPERATION BOOTSTRAP PROGRAM- Section 8 of the United States
  Housing Act of 1937 is amended by adding at the end the following new
  subsection:
  `(w) OPERATION BOOTSTRAP PROGRAM-
  `(1) PURPOSE- The purpose of the Operation Bootstrap program is to promote
  the development of local strategies to coordinate use of certificate and
  voucher program assistance with public and private resources, to enable
  eligible families to achieve economic independence.
  `(2) CONDITION FOR RECEIPT OF ADDITIONAL CERTIFICATE AND VOUCHER ASSISTANCE-
  (A) As a condition for receiving additional assistance under the certificate
  and voucher programs which represents a net increase in the number of
  assisted families (other than elderly families), a public housing agency
  shall agree to establish an Operation Bootstrap program. The public housing
  agency shall take steps to ensure that, at the earliest practicable time,
  the number of families participating under the Operation Bootstrap program
  shall be no less than a number equal to the aggregate number of certificates
  and vouchers that may be funded from such additional assistance, beginning
  with fiscal year 1991. The agency shall continue to operate the program
  for that number of families as long as it has sufficient funding under
  its certificate and voucher programs to do so.
  `(B) The requirements of this subsection shall not apply if the public
  housing agency demonstrates, to the satisfaction of the Secretary, that
  the establishment and operation of the program is not feasible due to
  local circumstances.
  `(3) PROGRAM COORDINATING COMMITTEE- Each public housing agency shall, in
  consultation with the chief executive officer of the unit of general local
  government, use a program coordinating committee to develop the action plan
  required by paragraph (4) of this subsection, carry out program activities,
  and secure commitments of public and private resources. The public housing
  agency may, in consultation with the chief executive officer of the unit
  of general local government, utilize an existing entity as the program
  coordinating committee if it meets the requirements of this subsection. The
  program coordinating committee shall consist of representatives of the public
  housing agency, the unit of general local government, the local agencies, if
  any, responsible for the Job Training Partnership Act programs and the Job
  Opportunities and Basic Skills Training program under the Social Security
  Act, and other organizations, such as other State and local welfare and
  employment agencies, public and private education or training institutions,
  nonprofit service providers, and private businesses.
  `(4) ACTION PLAN- (A) An action plan describing the Operation Bootstrap
  program shall be submitted by the public housing agency for approval by
  the Secretary in such form and in accordance with such procedures as the
  Secretary shall establish.
  `(B) The Secretary shall require that the action plan contain at a minimum--
  `(i) a description of the size, characteristics, and needs of the population
  of the families expected to participate in the Operation Bootstrap program;
  `(ii) a description of the services and activities to be provided to
  families receiving assistance under the certificate and voucher programs,
  which shall be provided by both public and private resources and shall
  include at least child care, transportation, personal and career counseling,
  job training and placement, case management, and education. The Secretary
  may approve a public housing agency request not to provide one or more of
  these services and activities where the public housing agency demonstrates
  to the satisfaction of the Secretary that the service or activity is not
  necessary or not feasible due to local circumstances;
  `(iii) a description of how the Operation Bootstrap program will match
  services and activities to the needs of the families in the program;
  `(iv) a description of both the public and private resources that are
  expected to be made available to provide the activities and services under
  the Operation Bootstrap program;
  `(v) a timetable for implementation of the Operation Bootstrap program;
  `(vi) assurances satisfactory to the Secretary that development of the
  services and activities under the Operation Bootstrap program has been
  coordinated with the Job Opportunities and Basic Skills Training program and
  the Job Training Partnership Act programs and any other relevant employment,
  training, and education programs in that area, and that implementation will
  continue to be coordinated, in order to avoid duplication of services and
  activities; and
  `(vii) assurances satisfactory to the Secretary that the services and
  activities under the Operation Bootstrap program will be provided in
  accordance with the requirements of the program.
  `(5) PARTICIPATION- (A) Where the Secretary has approved an action plan,
  the public housing agency may not admit a family to assistance under
  the certificate or voucher program, including assistance attached to an
  existing structure under subsection (d)(2), unless each member of the
  family (other than a member of the family who is under the age of 16 or
  who is considered of advanced age for purposes of subparagraph (E)(i))
  has agreed to participate in the Operation Bootstrap program. Failure by
  a member of the family to agree to participate in the Operation Bootstrap
  program shall be grounds for denial of housing assistance to the family
  and removal from the waiting list.
  `(B) Unless exempt from participation under subparagraph (E), each member
  of the family who agreed to participate in the Operation Bootstrap program,
  as required by subparagraph (A), shall be required to participate in the
  program if there are available openings in the program. Where openings
  are not available, each non-exempt family member shall be required to
  participate in the program once an opening becomes available. Where a
  member of a family is exempt from participation under subparagraph (E),
  that member shall be required to participate in Operation Bootstrap once
  the member no longer qualifies for an exemption (including any member over
  the age of 16) and an opening is available. This subparagraph shall not
  apply to members of families exempt under subparagraph (D).
  `(C) The Secretary may make a determination that participation by a
  member of a family in the Job Opportunities and Basic Skills Training
  program, the Job Training Partnership Act programs, or any other relevant
  employment, training, and education programs, in that area shall count
  as participation in the Operation Bootstrap program. Such a member of a
  family shall be eligible for activities and services available under the
  Operation Bootstrap program which are not available to that person under
  the program in which the person participates.
  `(D) A member of a family admitted to assistance under the certificate or
  voucher program, including assistance attached to an existing structure
  under subsection (d)(2), before the Secretary approves an action plan for
  the public housing agency, shall not be required to participate in the
  Operation Bootstrap program.
  `(E) A member of an eligible family shall be exempt from participation
  in the Operation Bootstrap program (but shall not be exempt from program
  obligations and responsibilities of families receiving assistance under the
  certificate and voucher programs), if the public housing agency determines
  that the individual--
  `(i) is ill, incapacitated, or of advanced age;
  `(ii) is needed in the home because of the illness or incapacity of another
  member of the household;
  `(iii) (I) is a parent or other member of the family who is personally
  providing care for a child under 3 years of age (or, if so provided
  in the action plan, under any age that is less than 3 years but not
  less than one year); or (II) is a parent or other member of the family
  personally providing care for a child under 6 years of age, unless the
  program coordinating committee assures that child care will be guaranteed
  and that participation in the program by the parent or other member of
  the family will not be required for more than 20 hours a week (only one
  parent or other member of the family may be exempt under this clause (iii));
  `(iv) works 30 or more hours a week;
  `(v) is a child who is under 16 or attends, full-time, an elementary,
  secondary, or vocational or technical school;
  `(vi) is attending (in good standing and at not less than half time)
  an institution of higher education (as defined in section 481(a) of
  the Higher Education Act of 1965), or a school or course of vocation or
  technical training (not less than half time) consistent with the individual's
  employment goals, and is making satisfactory progress in such institution,
  school, or course;
  `(vii) is attending (in good standing) on a full-time basis a secondary
  school in order to successfully complete a high school education (or its
  equivalent), and is making satisfactory progress in such school;
  `(viii) is pregnant, if it has been medically verified that the child
  is expected to be born in the month in which the participation in the
  Operation Bootstrap program would otherwise be required or within the
  six-month period immediately following childbirth; or
  `(ix) meets such other criteria as required by regulations issued by
  the Secretary.
  `(F) A member of a family who is exempt from participation under subparagraph
  (D) or (E) may participate in the Operation Bootstrap program with the
  approval of the program coordinating committee.
  `(4) FAILURE BY A FAMILY IN THE PROGRAM- Where a member of the assisted
  family is required to participate in the Operation Bootstrap program,
  failure by such member of the family to make a good faith effort to
  participate in or complete the program shall be grounds for termination
  of assistance to the family.
  `(7) ATTACHMENT OF CERTIFICATE ASSISTANCE TO STRUCTURE- (A) In any case
  where certificate assistance has been attached to an existing structure in
  accordance with subsection (d)(2), no more than 100 units may be occupied
  by persons participating in the Operation Bootstrap program.
  `(B) Where assistance is attached to an existing structure in accordance with
  subsection (d)(2) and services and activities are available at the project
  for participants in the Operation Bootstrap program, the lease with the
  family for a unit in the project may require the family to move after all
  members of the family have completed the program if (i) the public housing
  agency provides the family with a tenant-based certificate or voucher, and
  (ii) suitable replacement housing is available. The requirement for giving
  preference to certain categories of eligible families under subsections
  (d)(1)(A) and (o)(3) shall not apply to the provision of assistance to a
  family under clause (i) of the preceding sentence.
  `(C) In cases where services and activities are not available at the
  project under the Operation Bootstrap program, the lease with the family
  may not require the family to move because all members of the family have
  completed the Operation Bootstrap program.'.
  (b) EFFECTIVE DATE- The requirements contained in subsection (a) shall take
  effect for each public housing agency at the later of (1) the time the
  public housing agency receives additional assistance beginning in fiscal
  year 1991 or thereafter where such assistance represents a net increase
  in the number of assisted families (other than elderly families), or (2)
  the effective date of the notice under subsection (c) implementing the
  Operation Bootstrap program.
  (c) IMPLEMENTATION- Not later than 120 days after the date funds for
  the certificate and housing voucher programs first become available for
  obligation in fiscal year 1991, the Secretary shall by notice establish
  such requirements as may be necessary to carry out the provisions of this
  section. Such requirements shall be subject to section 553 of title 5,
  United States Code. The Secretary shall issue regulations based on the
  initial notice before the expiration of the eight-month period following
  the date of the notice.
TITLE IV--HOUSING OPPORTUNITY ZONES
  SEC. 401. BASIC AUTHORITY AND PURPOSE- (a) AUTHORITY AND PURPOSE-
  The Secretary is authorized to designate Housing Opportunity Zones and
  approve Barrier Removal Plans for cities and urban counties, as provided
  by and in accordance with this title, for the purpose of encouraging
  these jurisdictions to remove legislative and administrative barriers
  to the production of new and substantially rehabilitated housing that is
  affordable to lower-, moderate-, and middle-income families.
  (b) NOTICE- The Secretary shall establish standards to implement the
  provisions of this title by notice published in the Federal Register not
  later than 120 days after the date of enactment of this Act.
  (c) RELATED ASSISTANCE- The Secretary is authorized to promulgate or
  revise any insurance, guarantee, or financial or other assistance program
  or administrative requirement or regulation of the Secretary that is
  not required by law, in support of Barrier Removal Plans and Housing
  Opportunity Zones. To the extent such promulgation or revision relates
  only to actions that pertain to such Zones or such Plans, the Secretary
  may take such action by notice published in the Federal Register.
  SEC. 402. DEFINITIONS- As used in this title--
  (1) `Barrier' shall mean any requirement promulgated by the legislative
  or executive body of any State or local governmental entity that inhibits
  the production in the eligible jurisdiction of housing that is affordable
  to lower-, moderate-, and middle-income families.
  (2) `City' shall mean a city, as defined in section 102 of the Housing
  and Community Development Act of 1974.
  (3) `Eligible jurisdiction' shall mean a city that has a population of
  50,000 or more, or an urban county, that received a formula allocation of
  rental rehabilitation grants under section 17(b)(1) of the United States
  Housing Act of 1937 for the fiscal year immediately preceding the fiscal
  year in which Housing Opportunity Zones and Barrier Removal Plans are
  designated and approved, respectively.
  (4) `Housing Opportunity Zone' shall mean a geographic area designated
  by the Secretary that (A) has significant amounts of vacant land or
  vacant buildings that have potential for development or redevelopment
  for housing affordable to lower-, moderate-, and middle-income families;
  (B) has continuous boundaries and covers the entire area within these
  boundaries; and (C) covers an area that is less than coterminous with,
  but wholly within, the boundaries of the eligible jurisdiction.
  (5) `Lower-income family' shall mean a family or individual whose income
  does not exceed 80 percent of the median income of the area involved,
  as determined by the Secretary with adjustments for smaller and larger
  families, except that the Secretary may establish income ceilings that
  are higher or lower than 80 percent of the median for the area on the
  basis of the Secretary's findings that such variations are necessary
  because of unusually high or low family incomes. `Moderate-income family'
  shall mean a family or individual whose income exceeds 80 percent, but
  does not exceed 95 percent, of the median income for the area involved,
  as determined by the Secretary with adjustments for smaller and larger
  families, except that the Secretary may establish income ceilings that are
  higher or lower than 95 percent of the median for the area on the basis
  of the Secretary's findings that such variations are necessary because of
  unusually high or low family incomes. `Middle-income family' shall mean a
  family or individual whose income exceeds 95 percent, but does not exceed
  115 percent, of the median income for the area involved, as determined by
  the Secretary with adjustments for smaller and larger families, except that
  the Secretary may establish income ceilings that are higher or lower than
  115 percent of the median for the area on the basis of the Secretary's
  findings that such variations are necessary because of unusually high or
  low family incomes. For purposes of such terms, the area involved shall
  be determined in the same manner as such area is determined for purposes
  of assistance under section 8 of the United States Housing Act of 1937.
  (6) `Secretary' shall mean the Secretary of Housing and Urban Development.
  (7) `Urban county' shall mean an urban county, as defined in section 102
  of the Housing and Community Development Act of 1974.
  SEC. 403. HOUSING OPPORTUNITY ZONES- (a) DESIGNATION- The Secretary shall
  designate no more than 50 Housing Opportunity Zones. All Zone designations
  shall be made at one time. The Secretary shall make Zone designations
  for those eligible jurisdictions that, in the Secretary's discretion,
  as reflected in the applications, have the best chances of achieving the
  purposes of this title, except that the Secretary also shall have discretion
  to attain geographic diversity in making Zone designations.
  (b) APPLICATIONS- Each Zone designation shall be made on the basis of an
  application from an eligible jurisdiction. Each application for designation
  of a Housing Opportunity Zone shall specify--
  (1) the location, boundaries, and character of the proposed Zone, including
  any maps or other supporting material that the Secretary deems appropriate;
  (2) the actions that the applicant will take during the term of the
  designation to remove particular barriers within the Zone, including the
  applicant's timetable for taking the actions;
  (3) a plan for the production of housing affordable to lower-, moderate-,
  and middle-income families, respectively, in the Zone, which plan shall
  include a description of the quantities and types of housing to be produced
  and a timetable for their production;
  (4) a clear delineation of the relationship between barriers to be removed
  and the housing to be produced, including the effect of removing the
  barriers on reducing the price of housing;
  (5) actions that an applicant shall take to emphasize homeownership
  opportunities for lower-, moderate-, and middle-income families;
  (6) any other local support for Zone activities, including commitments
  of financial or technical assistance from public and private entities
  and persons, including (but not limited to) such resources derived from
  community development block grants and programs of State assistance,
  donations of land, buildings, and other resources, and the abatement of
  relevant taxes, fees, and charges; and
  (7) such other information as the Secretary shall require.
  (c) HIGHER INCOME AREAS- In the case of an eligible jurisdiction having
  a median family income higher than the median family income for the
  Metropolitan Statistical Area in which it is located, the application for
  designation of a Housing Opportunity Zone shall particularly emphasize
  producing housing to meet the needs of lower-income families.
  SEC. 404. SELECTION OF HOUSING OPPORTUNITY ZONES- The Secretary shall
  designate Housing Opportunity Zones on the basis of a national competition,
  using the following selection criteria:
  (1) the extent to which the Zone has substantial potential for accommodating
  the production of housing;
  (2) the extent to which housing produced in the Zone will be affordable
  to lower-, moderate-, or middle-income families;
  (3) the extent to which the removal of the barriers specified in the
  application will have a substantial effect on lowering the cost of housing;
  (4) the extent to which the application emphasizes homeownership
  opportunities;
  (5) the extent to which the applicant's proposed barrier removals and
  housing activities are capable of accomplishment within the period of the
  Zone designation;
  (6) the extent of any other local support for Zone activities; and
  (7) such other factors as the Secretary may require.
  SEC. 405. BARRIER REMOVAL PLANS- The Secretary may approve Barrier Removal
  Plans submitted by eligible jurisdictions. All such approvals shall be made
  at one time, when the Housing Opportunity Zones are designated under this
  title. Eligible jurisdictions may apply both for Housing Opportunity Zone
  designation and Barrier Removal Plan approval, but may not be approved for
  both. Plans shall apply to the entire jurisdiction for which application
  is made, and shall identify the barriers to affordable housing for lower-,
  moderate-, and middle-income families; describe the steps that the locality
  intends to take to remove the barriers; and set forth a timetable for
  achieving such steps. The Secretary shall specify in the notice referred
  to in section 401(b) such minimum standards for the approval of Plans as
  the Secretary deems appropriate.
  SEC. 406. TERM AND REVOCATION OF HOUSING OPPORTUNITY ZONE DESIGNATIONS AND
  BARRIER REMOVAL PLAN APPROVALS- (a) TERM OF APPROVAL OR DESIGNATION- The
  approval of any Barrier Removal Plan and the designation of any Housing
  Opportunity Zone shall be effective for a term that shall not exceed
  three years.
  (b) REVIEW AND REVOCATION- At least annually, the Secretary shall review
  the progress of each jurisdiction with a designated Zone or an approved
  Plan in undertaking the actions specified in its application. If, in the
  Secretary's sole judgment, the jurisdiction is not making substantial
  progress in achieving the purposes of this title, the Secretary may revoke
  the approval of the Barrier Removal Plan or the designation of the Housing
  Opportunity Zone.
  (c) OBLIGATIONS UNDER RELATED PROGRAMS- (1) The revocation of a Plan
  approval or Zone designation under this title shall not affect obligations
  under any other law except to the extent that there is documentary evidence
  that the Secretary made such obligation subject to the continuation without
  revocation of the approval or designation.
  (2) For a period of one year after the approval or designation ceases to
  be effective, the Secretary shall have the authority to accord to the
  jurisdiction that has had a designated Zone the benefits of sections
  203(b)(2)(iv) and 203(k)(6) of the National Housing Act.
  SEC. 407. REPORTS- (a) ANNUAL PERFORMANCE REPORTS- The Secretary may require
  each jurisdiction that has an approved Barrier Removal Plan or a designated
  Housing Opportunity Zone, to make annual performance reports, in support
  of the Secretary's responsibility to conduct progress reviews, and otherwise.
  (b) FINAL REPORTS- Each jurisdiction that has an approved Barrier Removal
  Plan or a designated Housing Opportunity Zone shall submit a final report
  to the Secretary, in such form as the Secretary requires, within six months
  after the Plan approval or Zone designation ceases to be effective.
  (c) REPORT TO CONGRESS- The Secretary shall evaluate the programs under this
  title, and report conclusions and make recommendations to the Congress within
  five years following the date of the original designations and approvals.
  SEC. 408. RENTAL REHABILITATION GRANT BONUS- Section 17(b)(2) of the
  United States Housing Act of 1937 is amended by adding a new subparagraph,
  as follows:
  `(C) The Secretary is authorized to increase by 5 percent for an approved
  Barrier Removal Plan, or 10 percent for a designated Housing Opportunity
  Zone, the amount allocated and otherwise adjusted under this subsection
  for any jurisdiction that has an approved Plan or a designated Zone,
  respectively, under title IV of the Homeownership and Opportunity for
  People Everywhere Act of 1990.'.
  SEC. 409. CDBG LOW- AND MODERATE-INCOME BENEFIT IN HOUSING OPPORTUNITY
  ZONES- Section 104(b)(3) of the Housing and Community Development Act of
  1974, is amended by--
  (1) striking out `and (B)' and inserting in lieu thereof the following:
  `(B) if the grantee is a severely distressed unit of local government and
  conducts an activity in a designated Housing Opportunity Zone under title
  IV of the Homeownership and Opportunity for People Everywhere Act of 1990,
  to the extent so conducted, the activity will be deemed to principally
  benefit low- and moderate-income persons; for purposes of construing
  the immediately preceding clause, `severely distressed unit of local
  government' means a unit of general local government (i) for which a
  major disaster is declared, in accordance with 42 U.S.C. 5121 et seq.,
  and that meets such other standards as the Secretary may determine, or
  (ii) that meets the standards established by the Secretary for determining
  severe distress, which standards shall be based upon measures of the lack
  of capacity of units of general local government to meet the needs of low-
  and moderate-income persons with their own resources; and (C)'.
  SEC. 410. REUSE OF URBAN RENEWAL LAND IN HOUSING OPPORTUNITY ZONES-
  The Secretary is authorized to modify or waive any term or condition for
  the benefit of the Secretary, or the United States, regarding the use or
  disposition of urban renewal project land, any part of which is located
  in a Housing Opportunity Zone, including payment of disposition proceeds
  to the Secretary, under a closeout grant made pursuant to section 106(i)
  of the Housing Act of 1949 or section 103(b) of the Housing and Community
  Development Act of 1974, if such action may assist in the carrying out of
  any activity in such Zone.
  SEC. 411. URBAN HOMESTEADING PREFERENCE- Section 810 of the Housing and
  Community Development Act of 1974 is amended by adding at the end thereof
  a new subsection, as follows:
  `(m)(1) In selecting urban homesteading programs for approval under
  subsection (b), the Secretary shall give preference to any unit of general
  local government that includes a designated Housing Opportunity Zone under
  title IV of the Homeownership and Opportunity for People Everywhere Act
  of 1990.
  `(2) In allocating money for reimbursement under subsection (g), the
  Secretary shall give preference to making reimbursements for properties
  that are requested by units of general local government that include a
  designated Housing Opportunity Zone.'.
  SEC. 412. SINGLE FAMILY MORTGAGE INSURANCE IN HOUSING OPPORTUNITY ZONES-
  (a) The last sentence of the paragraph numbered (2) in section 203(b) of
  the National Housing Act is amended by striking out `or' immediately before
  `(iii)' and inserting immediately before the final period the following:
  `, or (iv) the dwelling is located in a designated Housing Opportunity Zone
  under title IV of the Homeownership and Opportunity for People Everywhere
  Act of 1990'.
  (b) Section 203(k) of the National Housing Act is amended by adding a new
  paragraph at the end thereof as follows:
  `(6)(A) The Secretary is authorized to promulgate regulations that shall,
  in addition to other purposes under this title, promote the rehabilitation
  of housing for lower-, moderate-, and middle-income families (as defined
  in title IV of the Homeownership and Opportunity for People Everywhere Act
  of 1990) in Housing Opportunity Zones designated under title IV of such Act.
  `(B) The regulations under this paragraph may provide for the Secretary--
  `(i) to delegate to a public agency the authority under this subsection to
  prescribe and implement standards and procedures that shall be in accord
  with this section and approved by the Secretary, for credit reviews,
  rehabilitation activities, and other eligibility requirements; and
  `(ii) to share the insurance risk with a public agency, through
  indemnification, coinsurance, or other means the Secretary finds to be
  appropriate.
  `(C) Any action taken by a public agency pursuant to the delegated authority
  shall be subject to review by the Secretary.'.
  SEC. 413. APPLICABILITY OF RELOCATION, ENVIRONMENTAL REVIEW, AND RELATED
  LAWS- Neither the approval of a Barrier Removal Plan nor the designation of
  a Housing Opportunity Zone under this title shall be deemed to constitute--
  (1) acquisition of real property or displacement of any person under the
  Uniform Relocation Assistance and Real Property Acquisition Policies Act
  of 1970;
  (2) a Federal action or proposal under the National Environmental Policy
  Act of 1969; or
  (3) an action, event, program, project, or undertaking that would invoke
  the applicability of any procedural duties that would otherwise arise from
  a Federal environmental or historic preservation law, Executive Order,
  or regulation.