Text: H.R.5334 — 102nd Congress (1991-1992)All Information (Except Text)

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--H.R.5334--
H.R.5334
One Hundred Second Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday, the third day of January,
one thousand nine hundred and ninety-two
An Act
To amend and extend certain laws relating to housing  and community
development,
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 `Housing and Community
  Development Act of 1992'.
  (b) TABLE OF CONTENTS-
Sec. 1. Short title and table of contents.
Sec. 2. Effective date.
TITLE I--HOUSING ASSISTANCE
Subtitle A--General Provisions
Sec. 101. Low-income housing authorization.
Sec. 102. Extension of ceiling rents.
Sec. 103. Definitions of income and adjusted income and applicability to
Indian housing programs.
Sec. 104. Public and section 8 housing tenant preference rules.
Sec. 105. Income eligibility for assisted housing.
Sec. 106. Family self-sufficiency program.
Subtitle B--Public and Indian Housing
Sec. 111. Major reconstruction of obsolete projects.
Sec. 112. Public housing tenant preferences.
Sec. 113. Reform of public housing management.
Sec. 114. Public housing operating subsidies.
Sec. 115. Public housing vacancy reduction.
Sec. 116. Public housing demolition and disposition.
Sec. 117. Public housing resident management.
Sec. 118. Public housing homeownership.
Sec. 119. Public housing family investment centers.
Sec. 120. Revitalization of severely distressed public housing.
Sec. 121. Choice in public housing management.
Sec. 122. Assisted housing for Indians and Alaska Natives.
Sec. 123. Public housing early childhood development services.
Sec. 124. Indian housing childhood development services.
Sec. 125. Public housing one-stop perinatal services demonstration.
Sec. 126. Public housing youth sports programs.
Sec. 127. National Commission on Distressed Public Housing.
Sec. 128. National Commission on American Indian, Alaska Native, and Native
Hawaiian Housing.
Sec. 129. Rental assistance fraud recoveries.
Sec. 130. Project-based accounting.
Sec. 131. Sale of certain scattered-site housing.
Sec. 132. Homeownership demonstration program in Omaha, Nebraska.
Subtitle C--Section 8 Assistance
Sec. 141. Eligibility of low-income families to receive rental assistance.
Sec. 142. Contract adjustments for expiration of property tax exemption.
Sec. 143. Termination of contracts.
Sec. 144. Preferences for veterans with disabilities that prevent use of home.
Sec. 145. Termination of tenancy for criminal activity.
Sec. 146. Definitions of `project-based assistance' and `tenant-based
assistance'.
Sec. 147. Portability.
Sec. 148. Family unification assistance.
Sec. 149. Implementation of amendments to project-based certificate program.
Sec. 150. Effectiveness of section 8 assistance for FHA-owned units.
Sec. 151. Implementation of income eligibility provisions for section 8 new
construction units.
Sec. 152. Moving to opportunity for fair housing.
Sec. 153. Directive to further fair housing objectives under certificate
and voucher programs.
Sec. 154. Housing assistance in Jefferson County, Texas.
Sec. 155. Compliance of certain activities with limitations on project-based
assistance.
Subtitle D--Other Programs
Sec. 161. Public and assisted housing drug elimination.
Sec. 162. Housing counseling.
Sec. 163. Use of funds recaptured from refinancing State and local finance
projects.
Sec. 164. HOPE for youth.
Sec. 165. Extension for commencement of certain construction.
Subtitle E--Homeownership Programs
Sec. 181. HOPE programs.
Sec. 182. National Homeownership Trust demonstration.
Sec. 183. Nehemiah housing opportunity grants.
Sec. 184. Loan guarantees for Indian housing.
Sec. 185. Assistance under section 8 for homeownership.
Sec. 186. Enterprise zone homeownership opportunity grants.
Subtitle F--Implementation
Sec. 191. Implementation.
TITLE II--HOME INVESTMENT PARTNERSHIPS
Sec. 201. Authorization of appropriations.
Sec. 202. Home program thresholds.
Sec. 203. Elimination of restrictions on new construction.
Sec. 204. Policies and preference rules; use of tenant-based rental assistance
amounts for security deposits.
Sec. 205. Use of home funds for homeless assistance.
Sec. 206. Per unit cost limits.
Sec. 207. Administrative costs as eligible use of investment.
Sec. 208. Affordable housing.
Sec. 209. Homeownership resale restrictions.
Sec. 210. Matching requirements.
Sec. 211. Assistance for insular areas.
Sec. 212. Community housing production set-aside.
Sec. 213. Housing education and organizational support for community land
trusts.
Sec. 214. Land bank redevelopment.
Sec. 215. Research in providing affordable housing through innovative building
techniques and technology.
Sec. 216. Use of innovative building technologies to provide cost-saving
housing opportunities.
Sec. 217. Definition of community housing development organization.
Sec. 218. Inclusion of echo housing in definition of housing.
Sec. 219. Eligibility of manufactured homeowners as first-time homebuyers.
Sec. 220. Eligibility for assistance and contents of strategies.
Sec. 221. Location of activities.
Sec. 222. Regulations.
Sec. 223. Retroactive application of home amendments.
TITLE III--PRESERVATION OF LOW-INCOME HOUSING
Subtitle A--Prepayment of Mortgages Insured Under National Housing Act
Sec. 301. Authorization of appropriations.
Sec. 302. Guidelines for appraisals of preservation value.
Sec. 303. Second notice of intent.
Sec. 304. Plan of action.
Sec. 305. Approval of plan of action.
Sec. 306. Receipt of incentives to extend low-income use.
Sec. 307. Transfer to qualified purchasers.
Sec. 308. Criteria for plan of action involving incentives.
Sec. 309. Resident homeownership program.
Sec. 310. Definition of eligible low-income housing.
Sec. 311. Preemption of State and local laws.
Sec. 312. Technical assistance and capacity building.
Sec. 313. Transition provisions.
Sec. 314. Conditions of assistance.
Sec. 315. Delegated responsibility to State agencies.
Sec. 316. Insurance for second mortgage financing.
Sec. 317. Technical amendments.
Sec. 318. Study of projects assisted under flexible subsidy program.
Subtitle B--Other Preservation Provisions
Sec. 331. Eligibility of public mortgagors for section 236 mortgage insurance.
Sec. 332. Regulations.
TITLE IV--MULTIFAMILY HOUSING PLANNING AND INVESTMENT STRATEGIES
Sec. 401. Definitions.
Sec. 402. Required submission.
Sec. 403. Contents.
Sec. 404. Submission and review.
Sec. 405. Troubled multifamily housing.
Sec. 406. Flexible subsidy program.
Sec. 407. Capacity study.
Sec. 408. Flexible subsidy program.
TITLE V--MORTGAGE INSURANCE AND SECONDARY MORTGAGE MARKET
Subtitle A--FHA Mortgage Insurance Programs
Sec. 501. Limitation on insurance authority.
Sec. 502. Federal Housing Administration Advisory Board.
Sec. 503. Maximum mortgage amount.
Sec. 504. FHA annual report.
Sec. 505. Maximum principal obligation of mortgages for veterans.
Sec. 506. Prepurchase counseling requirement.
Sec. 507. Authority to decrease insurance premium charges.
Sec. 508. Statute of limitations on payment of distributive shares.
Sec. 509. Mortgage limits for multifamily projects.
Sec. 510. Insurance of loans for operating losses of multifamily projects.
Sec. 511. Eligibility of assisted living facilities for mortgage insurance
under section 232.
Sec. 512. Expediting insurance for acquisition of Resolution Trust Corporation
property.
Sec. 513. Energy efficient mortgages pilot program.
Sec. 514. Study regarding home warranty plans.
Sec. 515. Expenditures to correct defects.
Sec. 516. Payment of mortgage insurance claims.
Sec. 517. Coverage of the Multifamily Mortgage Foreclosure Act.
Sec. 518. Mortgagee Review Board.
Sec. 519. Definition of mortgagee.
Sec. 520. Exemption from section 137(b) of the Truth in Lending Act.
Subtitle B--Secondary Mortgage Market Programs
Sec. 531. Limitation on GNMA guarantees of mortgage-backed securities.
Sec. 532. Authority for GNMA to make hardship interest payments.
Subtitle C--Improvement of Financing for Multifamily Housing
Sec. 541. Short title.
Sec. 542. Multifamily mortgage credit demonstrations.
Sec. 543. National interagency task force on multifamily housing.
Sec. 544. Definitions.
TITLE VI--HOUSING FOR ELDERLY PERSONS AND PERSONS WITH DISABILITIES
Subtitle A--Supportive Housing Programs
Sec. 601. Funding for supportive housing for the elderly and for persons
with disabilities.
Sec. 602. Supportive housing for the elderly.
Sec. 603. Supportive housing for persons with disabilities.
Sec. 604. Revised congregate housing services program.
Sec. 605. HOPE for elderly independence.
Sec. 606. Housing opportunities for persons with AIDS.
Subtitle B--Authority for Public Housing Agencies to Provide Designated
Public Housing and Assistance for Disabled Families
Sec. 621. Definitions.
Sec. 622. Authority.
Sec. 623. Tenant-based assistance for persons with disabilities.
Sec. 624. Development and reconstruction of housing for disabled families.
Sec. 625. Conforming amendments.
Sec. 626. Inapplicability to Indian public housing.
Subtitle C--Standards and Obligations of Residency in Federally Assisted
Housing
Sec. 641. Compliance by owners as condition of Federal assistance.
Sec. 642. Compliance with criteria for occupancy as requirement for tenancy.
Sec. 643. Establishment of criteria for occupancy.
Sec. 644. Assisted applications.
Subtitle D--Authority to Provide Preferences for Elderly Residents and Units
for Disabled Residents in Certain Section 8 Assisted Housing
Sec. 651. Authority.
Sec. 652. Reservation of units for disabled families.
Sec. 653. Secondary preferences.
Sec. 654. General availability of units.
Sec. 655. Preference within groups.
Sec. 656. Prohibition of evictions.
Sec. 657. Treatment of covered section 8 housing not subject to elderly
preference.
Sec. 658. Treatment of other federally assisted housing.
Sec. 659. Covered section 8 housing.
Sec. 660. Section 8 preference.
Sec. 661. Study.
Subtitle E--Service Coordinators for Elderly and Disabled Residents of
Federally Assisted Housing
Sec. 671. Requirement to provide service coordinators.
Sec. 672. Required training of service coordinators.
Sec. 673. Costs of providing service coordinators in public housing.
Sec. 674. Costs of providing service coordinators in project-based section
8 housing.
Sec. 675. Costs of providing service coordinators for families receiving
Federal tenant-based assistance.
Sec. 676. Grants for costs of providing service coordinators in multifamily
housing assisted under National Housing Act.
Sec. 677. Expanded responsibilities of service coordinators in section
202 housing.
Subtitle F--General Provisions
Sec. 681. Comprehensive housing affordability strategies.
Sec. 682. Conforming amendments.
Sec. 683. Definitions.
Sec. 684. Applicability.
Sec. 685. Regulations.
TITLE VII--RURAL HOUSING
Sec. 701. Program authorizations.
Sec. 702. Eligibility of homes on leased land owned by community land trusts
for section 502 loans.
Sec. 703. Maximum income of borrowers under guaranteed loans.
Sec. 704. Remote rural areas.
Sec. 705. Designation of underserved areas and reservation of assistance.
Sec. 706. Rural Housing Voucher program.
Sec. 707. Rental housing loans.
Sec. 708. Nonprofit set-aside.
Sec. 709. Consideration of certain areas as rural areas.
Sec. 710. Permanent authority for section 523.
Sec. 711. Housing preservation grants for replacement of housing.
Sec. 712. Preservation.
Sec. 713. Disaster assistance.
Sec. 714. Prohibition on transfer of rural housing programs.
Sec. 715. Site acquisition and development.
Sec. 716. Reciprocity in approval of housing subdivisions among Federal
agencies.
TITLE VIII--COMMUNITY DEVELOPMENT
Subtitle A--Community Development Block Grants
Sec. 801. Community development authorizations.
Sec. 802. Units of general local government.
Sec. 803. Urban counties.
Sec. 804. Retention of program income.
Sec. 805. Economic development.
Sec. 806. Evaluation, selection, and review of economic development projects.
Sec. 807. Eligible activities.
Sec. 808. Reference to Fair Housing Act.
Sec. 809. Eligibility of enterprise zones.
Sec. 810. Assistance for colonias.
Sec. 811. State set-aside for technical assistance.
Sec. 812. Community development plans and reports.
Sec. 813. Delay use of 1990 census housing data to examine effect on targeting
for CDBG formula.
Subtitle B--Other Community Development Programs
Sec. 831. Neighborhood Reinvestment Corporation.
Sec. 832. Neighborhood development program.
Sec. 833. Study regarding housing technology research.
Sec. 834. Designation of enterprise zones.
Subtitle C--Miscellaneous Programs
Sec. 851. Community Outreach Act.
Sec. 852. Computerized database of community development needs.
Sec. 853. Community Investment Corporation demonstration.
Sec. 854. Emergency assistance for Los Angeles.
TITLE IX--REGULATORY AND MISCELLANEOUS PROGRAMS
Subtitle A--Miscellaneous
Sec. 901. HUD research and development.
Sec. 902. Administration of Department of Housing and Urban Development.
Sec. 903. Participant's consent to release of information.
Sec. 904. National Institute of Building Sciences.
Sec. 905. Fair housing initiatives program.
Sec. 906. National Commission on Manufactured Housing.
Sec. 907. Manufactured housing.
Sec. 908. Real Estate Settlement Procedures Act of 1974.
Sec. 909. Community Reinvestment Act of 1977.
Sec. 910. Report on community development lending.
Sec. 911. Subsidy layering review.
Sec. 912. Solar assistance financing entity.
Sec. 913. Technical and Conforming Amendments relating to labor wage rates
under housing programs.
Sec. 914. Energy efficient mortgages.
Sec. 915. Economic opportunities for low- and very low-income persons.
Sec. 916. Study of the effectiveness of section 3 of the Housing and Urban
Development Act of 1968.
Sec. 917. Indian housing authorities.
Sec. 918. Study regarding foreclosure alternatives.
Sec. 919. Regulations clarifying the term `housing for older persons'.
Sec. 920. Use of domestic products.
Sec. 921. Improved coordination of urban policy.
Sec. 922. Prohibition of lump-sum payments.
Sec. 923. Economic independence.
Sec. 924. Administrative provision.
Sec. 925. Performance goals.
Sec. 926. Regulation of consultants.
Sec. 927. Clarification on utility allowances.
Sec. 928. Flood control restoration zone.
Sec. 929. Salaries and expenses.
Sec. 930. The National Cities in Schools Community Development program.
Sec. 931. Bank Enterprise Act of 1991 and related provisions.
Sec. 932. Disclosures under the Home Mortgage Disclosure Act of 1975.
Sec. 933. Prohibition on use of `rule of 78's' in connection with mortgage
refinancings and other consumer loans.
Subtitle B--Bank Regulatory Clarification Provisions
Sec. 951. Amendment relating to estimates of real estate settlement costs.
Sec. 952. Adjustable rate mortgage caps.
Sec. 953. Modifying separate capitalization rule for savings associations'
subsidiaries engaged in activities not permissible for national banks.
Sec. 954. Real estate appraisal amendment.
Sec. 955. Insider lending.
Sec. 956. Clarification of compensation standards.
Sec. 957. Truth in Savings Act amendments.
TITLE X--RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT OF 1992
Sec. 1001. Short title.
Sec. 1002. Findings.
Sec. 1003. Purposes.
Sec. 1004. Definitions.
Subtitle A--Lead-Based Paint Hazard Reduction
Sec. 1011. Grants for lead-based paint hazard reduction in target housing.
Sec. 1012. Evaluation and reduction of lead-based paint hazards in federally
assisted housing.
Sec. 1013. Disposition of federally owned housing.
Sec. 1014. Comprehensive housing affordability strategy.
Sec. 1015. Task force on lead-based paint hazard reduction and financing.
Sec. 1016. National consultation on lead-based paint hazard reduction.
Sec. 1017. Guidelines for lead-based paint hazard evaluation and reduction
activities.
Sec. 1018. Disclosure of information concerning lead upon transfer of
residential property.
Subtitle B--Lead Exposure Reduction
Sec. 1021. Contractor training and certification.
Subtitle C--Worker Protection
Sec. 1031. Worker protection.
Sec. 1032. Coordination between Environmental Protection Agency and Department
of Labor.
Sec. 1033. NIOSH responsibilities.
Subtitle D--Research and Development
Part 1--HUD Research
Sec. 1051. Research on lead exposure from other sources.
Sec. 1052. Testing technologies.
Sec. 1053. Authorization.
Part 2--GAO Report
Sec. 1056. Federal implementation and insurance study.
Subtitle E--Reports
Sec. 1061. Reports of the Secretary of Housing and Urban Development.
TITLE XI--NEW TOWNS DEMONSTRATION PROGRAM FOR EMERGENCY RELIEF OF LOS ANGELES
Sec. 1101. Authority.
Sec. 1102. New town plan.
Sec. 1103. New town development demonstration program requirements.
Sec. 1104. Federal mortgage insurance.
Sec. 1105. Secondary soft mortgage financing for housing.
Sec. 1106. Community development assistance.
Sec. 1107. Governing boards.
Sec. 1108. Reports.
Sec. 1109. Definitions.
TITLE XII--REMOVAL OF REGULATORY BARRIERS TO AFFORDABLE HOUSING
Sec. 1201. Short title.
Sec. 1202. Purposes.
Sec. 1203. Definition of regulatory barriers to affordable housing.
Sec. 1204. Grants for regulatory barrier removal strategies and implementation.
Sec. 1205. Regulatory barriers clearinghouse.
Sec. 1206. Substantially equivalent Federal and State barrier assessment
removal requirements.
Sec. 1207. Reports by Secretary.
TITLE XIII--GOVERNMENT SPONSORED ENTERPRISES
Sec. 1301. Short title.
Sec. 1302. Congressional findings.
Sec. 1303. Definitions.
Sec. 1304. Protection of taxpayers against liability.
Subtitle A--Supervision and Regulation of Enterprises
Part 1--Financial Safety and Soundness Regulator
Sec. 1311. Establishment of Office of Federal Housing Enterprise Oversight.
Sec. 1312. Director.
Sec. 1313. Duty and authority of director.
Sec. 1314. Authority to require reports by enterprises.
Sec. 1315. Personnel.
Sec. 1316. Funding.
Sec. 1317. Examinations.
Sec. 1318. Prohibition of excessive compensation.
Sec. 1319. Authority to provide for review of enterprises by rating
organization.
Sec. 1319A. Equal opportunity in solicitation of contracts.
Sec. 1319B. Annual reports by director.
Sec. 1319C. Public disclosure of final orders and agreements.
Sec. 1319D. Limitation on subsequent employment.
Sec. 1319E. Audits by GAO.
Sec. 1319F. Information, records, and meetings.
Sec. 1319G. Regulations and orders.
Part 2--Authority of Secretary
SUBPART A--GENERAL AUTHORITY
Sec. 1321. Regulatory authority.
Sec. 1322. Prior approval authority for new programs.
Sec. 1323. Public access to mortgage information.
Sec. 1324. Annual housing report.
Sec. 1325. Fair housing.
Sec. 1326. Prohibition of public disclosure of proprietary information.
Sec. 1327. Authority to require reports by enterprises.
Sec. 1328. Reports by Secretary.
SUBPART B--HOUSING GOALS
Sec. 1331. Establishment.
Sec. 1332. Low- and moderate-income housing goal.
Sec. 1333. Special affordable housing goal.
Sec. 1334. Central cities, rural areas, and other underserved areas housing
goal.
Sec. 1335. Other requirements.
Sec. 1336. Monitoring and enforcing compliance with housing goals.
Sec. 1337. Reports during transition.
Sec. 1338. Effective date of transition goals.
SUBPART C--ENFORCEMENT OF HOUSING GOALS
Sec. 1341. Cease-and-desist proceedings.
Sec. 1342. Hearings.
Sec. 1343. Judicial review.
Sec. 1344. Enforcement and jurisdiction.
Sec. 1345. Civil money penalties.
Sec. 1346. Public disclosure of final orders and agreements.
Sec. 1347. Notice of service.
Sec. 1348. Subpoena authority.
Sec. 1349. Regulations.
Part 3--Miscellaneous Provisions
Sec. 1351. Amendments to title 5, United States Code.
Sec. 1352. Prohibition of merger of office.
Sec. 1353. Protection of confidential information.
Sec. 1354. Review of underwriting guidelines.
Sec. 1355. Studies of effects of privatization of FNMA and FHLMC.
Sec. 1356. Transition.
Subtitle B--Required Capital Levels for Enterprises and Special Enforcement
Powers
Sec. 1361. Risk-based capital levels.
Sec. 1362. Minimum capital levels.
Sec. 1363. Critical capital levels.
Sec. 1364. Capital classifications.
Sec. 1365. Supervisory actions applicable to undercapitalized enterprises.
Sec. 1366. Supervisory actions applicable to significantly undercapitalized
enterprises.
Sec. 1367. Appointment of conservators for critically undercapitalized
enterprises.
Sec. 1368. Notice of classification and enforcement action.
Sec. 1369. Appointment of conservators.
Sec. 1369A. Powers of conservators.
Sec. 1369B. Liability protection for conservators.
Sec. 1369C. Capital restoration plans.
Sec. 1369D. Judicial review of director action.
Subtitle C--Enforcement Provisions
Sec. 1371. Cease-and-desist proceedings.
Sec. 1372. Temporary cease-and-desist orders.
Sec. 1373. Hearings.
Sec. 1374. Judicial review.
Sec. 1375. Enforcement and jurisdiction.
Sec. 1376. Civil money penalties.
Sec. 1377. Notice after separation from service.
Sec. 1378. Private rights of action.
Sec. 1379. Public disclosure of final orders and agreements.
Sec. 1379A. Notice of service.
Sec. 1379B. Subpoena authority.
Subtitle D--Amendments to Charter Acts of Enterprises
Sec. 1381. Amendments to Federal National Mortgage Association Charter Act.
Sec. 1382. Amendments to Federal Home Loan Mortgage Corporation Act.
Sec. 1383. Implementation.
Subtitle E--Regulation of Federal Home Loan Bank System
Sec. 1391. Primacy of financial safety and soundness for Federal Housing
Finance Board.
Sec. 1392. Advances under Federal Home Loan Bank Act.
Sec. 1393. Studies regarding Federal Home Loan Bank system.
Sec. 1394. Report of Federal Home Loan Bank members.
Sec. 1395. Reports regarding consolidation of Federal Home Loan Bank system.
TITLE XIV--HOUSING PROGRAMS UNDER STEWART B. MCKINNEY HOMELESS ASSISTANCE ACT
Subtitle A--Housing Assistance
Sec. 1401. Short title.
Sec. 1402. Emergency Shelter Grants program.
Sec. 1403. Supportive Housing program.
Sec. 1404. Safe Havens for Homeless Individuals Demonstration program.
Sec. 1405. Section 8 assistance for single room occupancy dwellings.
Sec. 1406. Shelter Plus Care program.
Sec. 1407. FHA single family property disposition.
Sec. 1408. Rural Homelessness Grant program.
Sec. 1409. Evaluation of programs.
Sec. 1410. Extension of original McKinney Act Housing programs.
Sec. 1411. Consultation and report regarding use of National Guard facilities
as overnight shelters for homeless individuals.
Sec. 1412. Strategy to eliminate unfit transient facilities.
Sec. 1413. Amendments to table of contents.
Sec. 1414. Use of FMHA inventory for transitional housing for homeless
persons and for turnkey housing.
Subtitle B--Interagency Council on the Homeless
Sec. 1421. Authorization of appropriations.
Sec. 1422. Extension.
Subtitle C--Federal Emergency Management Food and Shelter Program
Sec. 1431. Authorization of appropriations.
Sec. 1432. Employment and participation of homeless individuals in local
programs.
TITLE XV--ANNUNZIO-WYLIE ANTI-MONEY LAUNDERING ACT
Sec. 1500. Short title.
Subtitle A--Termination of Charters, Insurance, and Offices
Sec. 1501. Authority to appoint conservator for depository institutions
convicted of money laundering.
Sec. 1502. Revoking charter of Federal depository institutions convicted of
money laundering or cash transaction reporting offenses.
Sec. 1503. Terminating insurance of State depository institutions convicted
of money laundering or cash transaction reporting offenses.
Sec. 1504. Removing parties involved in currency reporting violations.
Sec. 1505. Unauthorized participation.
Sec. 1506. Access by State financial institution supervisors to currency
transactions reports.
Sec. 1507. Restricting State branches and agencies of foreign banks convicted
of money laundering offenses.
Subtitle B--Nonbank Financial Institutions and General Provisions
Sec. 1511. Identification of financial institutions.
Sec. 1512. Prohibition of illegal money transmitting businesses.
Sec. 1513. Compliance procedures.
Sec. 1514. Nondisclosure of orders.
Sec. 1515. Provisions relating to recordkeeping with respect to certain
funds transfers.
Sec. 1516. Use of certain records.
Sec. 1517. Suspicious transactions and financial institution anti-money
laundering programs.
Sec. 1518. Anti-money laundering training team.
Sec. 1519. International money laundering reports.
Subtitle C--Money Laundering Enforcement Improvements
Sec. 1521. Jurisdiction in civil forfeiture cases.
Sec. 1522. Civil forfeiture of fungible property.
Sec. 1523. Procedure for subpoenaing bank records.
Sec. 1524. Deletion of redundant and inadvertently limiting provision in 18
U.S.C. 1956.
Sec. 1525. Structuring transactions to evade CMIR requirement.
Sec. 1526. Clarification of definition of financial institution.
Sec. 1527. Definition of financial transaction.
Sec. 1528. Obstructing a money laundering investigation.
Sec. 1529. Awards in money laundering cases.
Sec. 1530. Penalty for money laundering conspiracies.
Sec. 1531. Technical and conforming amendments to money laundering provision.
Sec. 1532. Preclusion of notice to possible suspects of existence of a grand
jury subpoena for bank records in money laundering and controlled substance
investigations.
Sec. 1533. Elimination of restriction on disposal of forfeited property by
the Department of the Treasury and the Postal Service.
Sec. 1534. New money laundering predicate offenses.
Sec. 1535. Amendments to the Bank Secrecy Act.
Sec. 1536. Expansion of money laundering law to cover proceeds of certain
foreign crimes.
Subtitle D--Reports and Miscellaneous
Sec. 1541. Study and report on reimbursing financial institutions and others
for providing financial records.
Sec. 1542. Reports of information regarding safety and soundness of depository
institutions.
Sec. 1543. Immunity.
Sec. 1544. Interagency information sharing.
Subtitle E--Counterfeit Deterrence
Sec. 1551. Short title.
Sec. 1552. Increase in penalties.
Sec. 1553. Deterrents to counterfeiting.
Sec. 1554. Reproductions of currency.
Subtitle F--Miscellaneous Provisions
Sec. 1561. Civil money penalties.
Sec. 1562. Authority to order depository institutions to obtain copies of
CTRS from customers which are unregulated businesses.
Sec. 1563. Whistleblower protection for employees of financial institutions
other than depository institutions.
Sec. 1564. Advisory group on reporting requirements.
Sec. 1565. GAO feasibility study of the financial crimes enforcement network.
TITLE XVI--TECHNICAL CORRECTIONS OF BANKING LAWS
Subtitle A--Federal Deposit Insurance Corporation Improvement Act
Sec. 1601. Table of contents.
Sec. 1602. Transfer and redesignation of sections with duplicate section
numbers.
Sec. 1603. Technical corrections relating to title I of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
Sec. 1604. Technical corrections relating to title II of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
Sec. 1605. Technical corrections relating to title III of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
Sec. 1606. Technical corrections relating to title IV of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
Sec. 1607. Technical corrections relating to title V of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
Sec. 1608. Federal Housing Finance Board practice required to conform to
congressional intent and existing law.
Sec. 1609. Effective date.
Subtitle B--Resolution Trust Corporation
Sec. 1611. Technical corrections relating to title I of the Resolution Trust
Corporation Refinancing, Restructuring, and Improvement Act of 1991.
Sec. 1612. Technical corrections relating to title II of the Resolution
Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991.
Sec. 1613. Technical corrections relating to title III of the Resolution
Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991.
Sec. 1614. Technical corrections relating to title IV of the Resolution
Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991.
Sec. 1615. Technical corrections relating to title V of the Resolution Trust
Corporation Refinancing, Restructuring, and Improvement Act of 1991.
Sec. 1616. Technical corrections relating to title VI of the Resolution
Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991.
Sec. 1617. Repeal of title consisting of amendments duplicated in the Federal
Deposit Insurance Corporation Improvement Act of 1991.
Sec. 1618. Effective date.
SEC. 2. EFFECTIVE DATE.
  The provisions of this Act and the amendments made by this Act shall take
  effect and shall apply upon the date of the enactment of this Act, unless
  such provisions or amendments specifically provide for effectiveness or
  applicability upon another date certain.
TITLE I--HOUSING ASSISTANCE
Subtitle A--General Provisions
SEC. 101. LOW-INCOME HOUSING AUTHORIZATION.
  (a) AGGREGATE BUDGET AUTHORITY- Section 5(c)(6) of the United States Housing
  Act of 1937 (42 U.S.C. 1437c(c)(6)) is amended by adding at the end the
  following new sentence: `The aggregate amount of budget authority that may
  be obligated for assistance referred to in paragraph (7) is increased (to
  the extent approved in appropriation Acts) by $14,710,990,520 on October 1,
  1992, and by $15,328,852,122 on October 1993.'.
  (b) UTILIZATION OF BUDGET AUTHORITY- Section 5(c)(7) of the United States
  Housing Act of 1937 (42 U.S.C. 1437c(c)(7)) is amended by striking the
  paragraph designation and all that follows through the end of subparagraph
  (B) and inserting the following:
  `(7)(A) Using the additional budget authority provided under paragraph (6)
  and the balances of budget authority that become available during fiscal
  year 1993, the Secretary shall, to the extent approved in appropriation
  Acts, reserve authority to enter into obligations aggregating--
  `(i) for public housing grants under subsection (a)(2), not more than
  $830,900,800, of which amount not more than $257,320,000 shall be available
  for Indian housing;
  `(ii) for assistance under section 8, not more than $1,977,662,720,
  of which $20,000,000 shall be available for 15-year contracts for
  project-based assistance to be used for a multicultural tenant empowerment
  and homeownership project located in the District of Columbia, except that
  assistance provided for such project shall not be considered for purposes
  of the percentage limitations under section 8(i)(2); except that not more
  than 49 percent of any amounts appropriated under this clause may be used
  for vouchers under section 8(o);
  `(iii) for comprehensive improvement assistance grants under section 14(k),
  not more than $3,100,000,000;
  `(iv) for assistance under section 8 for property disposition, not more
  than $93,032,000;
  `(v) for assistance under section 8 for loan management, not more than
  $202,000,000;
  `(vi) for extensions of contracts expiring under section 8, not more than
  $6,746,135,000, which shall be for 5-year contracts for assistance under
  section 8 and for loan management assistance under such section;
  `(vii) for amendments to contracts under section 8, not more than
  $1,350,000,000;
  `(viii) for public housing lease adjustments and amendments, not more
  than $83,055,000;
  `(ix) for conversions from leased housing contracts under section 23 of
  this Act (as in effect immediately before the enactment of the Housing
  and Community Development Act of 1974) to assistance under section 8,
  not more than $12,767,000; and
  `(x) for grants under section 24 for revitalization of severely distressed
  public housing, not more than $300,000,000.
  `(B) Using the additional budget authority provided under paragraph (6)
  and the balances of budget authority that become available during fiscal
  year 1994, the Secretary shall, to the extent approved in appropriation
  Acts, reserve authority to enter into obligations aggregating--
  `(i) for public housing grants under subsection (a)(2), not more than
  $865,798,634, of which amount not more than $268,127,440 shall be available
  for Indian housing;
  `(ii) for assistance under section 8, not more than $2,060,724,554,
  of which $20,000,000 shall be available for 15-year contracts for
  project-based assistance to be used for a multicultural tenant empowerment
  and homeownership project located in the District of Columbia, except that
  assistance provided for such project shall not be considered for purposes
  of the percentage limitations under section 8(i)(2); except that not more
  than 49 percent of any amounts appropriated under this clause may be used
  for vouchers under section 8(o);
  `(iii) for comprehensive improvement assistance grants under section 14(k),
  not more than $3,230,200,000;
  `(iv) for assistance under section 8 for property disposition, not more
  than $96,939,344;
  `(v) for assistance under section 8 for loan management, not more than
  $210,484,000;
  `(vi) for extensions of contracts expiring under section 8, not more than
  $7,029,472,670, which shall be for 5-year contracts for assistance under
  section 8 and for loan management assistance under such section;
  `(vii) for amendments to contracts under section 8, not more than
  $1,406,700,000;
  `(viii) for public housing lease adjustments and amendments, not more
  than $86,543,310;
  `(ix) for conversions from leased housing contracts under section 23 of
  this Act (as in effect immediately before the enactment of the Housing
  and Community Development Act of 1974) to assistance under section 8,
  not more than $13,303,214; and
  `(x) for grants under section 24 for revitalization of severely distressed
  public housing, not more than $312,600,000.'.
SEC. 102. EXTENSION OF CEILING RENTS.
  (a) REMOVAL OF 5-YEAR LIMIT- Section 3(a)(2)(A) of the United States
  Housing Act of 1937 (42 U.S.C. 1437a(a)(2)(A)) is amended by striking
  `for not more than a 5-year period'.
  (b) EXTENSION OF PREVIOUS CEILING RENTS- Section 3(a)(2)(B) of the United
  States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)(B)) is amended--
  (1) by striking the first sentence; and
  (2) in the last sentence, by striking `for the 5-year period beginning on
  such date of enactment' and inserting `without time limitation'.
SEC. 103. DEFINITIONS OF INCOME AND ADJUSTED INCOME AND APPLICABILITY TO
INDIAN HOUSING PROGRAMS.
  (a) IN GENERAL-
  (1) INCOME- Section 3(b)(4) of the United States Housing Act of 1937 (42
  U.S.C. 1437a(b)(4)) is amended by inserting after `family' the following:
  `and any amounts which would be eligible for exclusion under section
  1613(a)(7) of the Social Security Act (42 U.S.C. 1382b(a)(7))'.
  (2) ADJUSTED INCOME- Section 3(b)(5) of the United States Housing Act of
  1937 (42 U.S.C. 1437a(b)(5)) is amended--
  (A) by striking subparagraph (D) and inserting the following new
  subparagraph:
  `(D) child care expenses to the extent necessary to enable another member
  of the family to be employed or to further his or her education;';
  (B) by striking `and' at the end of subparagraph (E);
  (C) by striking the period at the end of subparagraph (F) and inserting
  `; and'; and
  (D) by inserting after subparagraph (F) the following new subparagraph:
  `(G) excessive travel expenses, not to exceed $25 per family per week,
  for employment- or education-related travel, except that this subparagraph
  shall apply only to families assisted by Indian housing authorities.'.
  (3) BUDGET COMPLIANCE- To the extent that the amendments made by paragraphs
  (1) and (2) result in additional costs under this title, such amendments
  shall be effective only to the extent that amounts to cover such additional
  costs are provided in advance in appropriation Acts.
  (b) APPLICABILITY OF DEFINITIONS TO INDIAN HOUSING-
  (1) IN GENERAL- In accordance with section 201(b)(2) of the United States
  Housing Act of 1937 (42 U.S.C. 1437aa(b)(2)), the provisions of sections
  572, 573, and 574 of the Cranston-Gonzalez National Affordable Housing
  Act shall apply to public housing developed or operated pursuant to a
  contract between the Secretary of Housing and Urban Development and an
  Indian Housing Authority.
  (2) EFFECTIVE DATE- Paragraph (1) shall take effect as if such provision
  were enacted upon the date of the enactment of the Cranston-Gonzalez
  National Affordable Housing Act.
SEC. 104. PUBLIC AND SECTION 8 HOUSING TENANT PREFERENCE RULES.
  Not later than the expiration of the 180-day period beginning on the
  date of the enactment of this Act, the Secretary of Housing and Urban
  Development shall issue regulations implementing the amendments made
  by sections 501 and 545 of the Cranston-Gonzalez National Affordable
  Housing Act. The regulations shall be issued after notice and opportunity
  for public comment pursuant to the provisions of section 553 of title 5,
  United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3)
  of such section) and shall take effect upon issuance.
SEC. 105. INCOME ELIGIBILITY FOR ASSISTED HOUSING.
  (a) EXEMPTION FROM WAITING LIST REQUIREMENTS- Section 16(c) of the United
  States Housing Act of 1937 (42 U.S.C. 1437n(c)) is amended--
  (1) in the first sentence, by striking the second comma and inserting `and';
  (2) in the first sentence, by striking `, and shall' and inserting `. In
  developing such admission procedures, the Secretary shall'; and
  (3) by inserting before the period at the end of the penultimate sentence
  the following: `; except that such prohibition shall not apply with respect
  to families selected for occupancy in public housing under the system of
  preferences established by the agency pursuant to section 6(c)(4)(A)(ii)'.
  (b) EXEMPTION FROM ELIGIBILITY RESTRICTIONS- Section 16(d)(2) of the
  United States Housing Act of 1937 (42 U.S.C. 1437n(d)(2)) is amended by
  inserting before the period `, to scattered site public housing dwelling
  units sold or intended to be sold to public housing tenants under section
  5(h) of this title.'.
SEC. 106. FAMILY SELF-SUFFICIENCY PROGRAM.
  (a) RESERVATION OF OPERATING SUBSIDIES- The last sentence of section
  23(h)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437u(h)(2))
  is amended to read as follows: `Of any amounts appropriated under section
  9(c) for fiscal year 1993, $25,000,000 is authorized to be used for costs
  under this paragraph, and of any amounts appropriated under such section
  for fiscal year 1994, $25,900,000 is authorized to be used for costs under
  this paragraph.'.
  (b) EXCEPTION TO REQUIRED ESTABLISHMENT OF PROGRAM- Section 23(b)(2) of
  the United States Housing Act of 1937 (42 U.S.C. 1437u(b)(2)) is amended
  by striking subparagraphs (A) through (D) and inserting the following:
  `(A) lack of supportive services accessible to eligible families, which
  shall include insufficient availability of resources for programs under
  the Job Training Partnerships Act or the Job Opportunities and Basic Skills
  Training Program under part F of title IV of the Social Security Act;
  `(B) lack of funding for reasonable administrative costs;
  `(C) lack of cooperation by other units of State or local government; or
  `(D) any other circumstances that the Secretary may consider appropriate.
In allocating assistance available for reservation under this Act, the
Secretary may not refuse to provide assistance or decrease the amount of
assistance that would otherwise be provided to any public housing agency
because the agency has provided a certification under this paragraph or
because, pursuant to a certification, the agency has failed to carry out a
self-sufficiency program.'.
  (c) NONPARTICIPATION- Section 23(b) of the United States Housing Act of
  1937 (42 U.S.C. 1437u(b)) is amended by adding at the end the following
  new paragraph:
  `(4) NONPARTICIPATION- Assistance under the certificate or voucher programs
  under section 8 for a family that elects not to participate in a local
  program shall not be delayed by reason of such election.'.
  (d) CONTRACT OF PARTICIPATION- Section 23(c)(1) of the United States
  Housing Act of 1937 (42 U.S.C. 1437u(c)(1)) is amended--
  (1) in the second sentence, by inserting after `program' the following:
  `, shall establish specific interim and final goals by which compliance
  with and performance of the contract may be measured,'; and
  (2) by striking the last sentence and inserting the following new sentences:
  `The contract shall provide that the public housing agency may terminate
  or withhold assistance under section 8 and services under paragraph (2)
  of this subsection if the public housing agency determines, through an
  administrative grievance procedure in accordance with the requirements of
  section 6(k), that the family has failed to comply with the requirements
  of the contract without good cause (which may include a loss or reduction
  in access to supportive services, or a change in circumstances that makes
  the family or individual unsuitable for participation).'.
  (e) SUPPORTIVE SERVICES- The first sentence of section 23(c)(2) of the
  United States Housing Act of 1937 (42 U.S.C. 1437u(c)(2)) is amended by
  striking `to each participating family' the second place it appears.
  (f) ESCROW SAVINGS ACCOUNTS- Section 23(d)(2) of the United States
  Housing Act of 1937 (42 U.S.C. 1437u(d)(2)) is amended in the last
  sentence by striking `only after' and all that follows through the end
  of the sentence and inserting the following: `after the family ceases
  to receive income assistance under Federal or State welfare programs,
  upon successful performance of the obligations of the family under the
  contract of participation entered into by the family under subsection
  (c), as determined according to the specific goals and terms included
  in the contract, and under other circumstances in which the Secretary
  determines an exception for good cause is warranted. A public housing
  agency establishing such escrow accounts may make certain amounts in the
  accounts available to the participating families before full performance
  of the contract obligations based on compliance with, and completion of,
  specific interim goals included in the contract; except that any such amounts
  shall be used by the participating families for purposes consistent with
  the contracts of participation, as determined by the public housing agency.'.
  (g) INCENTIVES FOR PARTICIPATION- Section 23(d) of the United States
  Housing Act of 1937 (42 U.S.C. 1437u(d)) is amended--
  (1) by striking the subsection designation and heading and inserting
  the following:
  `(d) INCENTIVES FOR PARTICIPATION- '; and
  (2) by adding at the end the following new paragraph:
  `(3) PLAN- Each public housing agency carrying out a local program under
  this section shall establish a plan to offer incentives to families to
  encourage families to participate in the program. The plan shall require
  the establishment of escrow savings accounts under paragraph (2) and may
  include any other incentives designed by the public housing agency.'.
  (h) ACTION PLAN- Section 23(g)(3) of the United States Housing Act of 1937
  (42 U.S.C. 1437u(g)(3)) is amended--
  (1) in subparagraph (F), by striking `and' at the end;
  (2) in subparagraph (G), by striking the period at the end and inserting
  `; and';
  (3) by redesignating subparagraphs (D) through (G) (as so amended) as
  subparagraphs (E) through (H), respectively;
  (4) by inserting after subparagraph (C) the following new subparagraph:
  `(D) a description of the incentives pursuant to subsection (d) offered
  by the public housing agency to families to encourage participation in
  the program;'; and
  (5) by adding at the end the following new paragraph:
  `(I) assurances satisfactory to the Secretary that nonparticipating
  families will retain their rights to public housing or section 8 assistance
  notwithstanding the provisions of this section.'.
  (i) DEFINITIONS- Section 23(n) of the United States Housing Act of 1937
  (42 U.S.C. 1437u(n)) is amended--
  (1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5),
  respectively;
  (2) by inserting after paragraph (2) the following new paragraph:
  `(3) The term `eligible family' means a family whose head of household is
  not elderly, disabled, pregnant, a primary caregiver for children under the
  age of 3, or for whom the family self-sufficiency program would otherwise be
  unsuitable. Notwithstanding the preceding sentence, a public housing agency
  may enroll such families if they choose to participate in the program.'; and
  (3) by adding at the end the following new paragraph:
  `(6) The term `vacant unit' means a dwelling unit that has been vacant
  for not less than 9 consecutive months.'.
  (j) INDIAN HOUSING- Section 23(o)(2) of the United States Housing Act of
  1937 (42 U.S.C. 1437u(o)(2)) is amended to read as follows:
  `(2) APPLICABILITY TO INDIAN PUBLIC HOUSING AUTHORITIES- Notwithstanding
  any other provision of law, the provisions of this section shall be optional
  for Indian housing authorities.'.
Subtitle B--Public and Indian Housing
SEC. 111. MAJOR RECONSTRUCTION OF OBSOLETE PROJECTS.
  (a) IN GENERAL- Section 5(j)(2) of the United States Housing Act of 1937
  (42 U.S.C. 1437c(j)(2)) is amended to read as follows:
  `(2)(A) Notwithstanding any other provision of law, the Secretary may reserve
  not more than 20 percent of any amounts appropriated for development
  of public housing in each fiscal year for the substantial redesign,
  reconstruction, or redevelopment of existing obsolete public housing projects
  or buildings and for the costs of improving the management and operation of
  projects undergoing redesign, reconstruction, or redevelopment under this
  paragraph (to the extent that such improvement is necessary to maintain
  the physical improvements resulting from such redesign, reconstruction,
  or redevelopment).
  `(B) For purposes of this paragraph, the term `obsolete public housing
  project or building' means a public housing project or building (i)
  having design or marketability problems resulting in vacancy in more than
  25 percent of the units, or (ii)(I) for which the costs for redesign,
  reconstruction, or redevelopment (including any costs for lead-based paint
  abatement activities) exceed 70 percent of the total development cost limits
  for new construction of similar units in the area, and (II) which has an
  occupancy density or a building height that is significantly in excess of
  that which prevails in the neighborhood in which the project is located,
  a bedroom configuration that could be altered to better serve the needs
  of families seeking occupancy to dwellings of the public housing agency,
  significant security problems in and around the project, or significant
  physical deterioration or inefficient energy and utility systems.
  `(C) The Secretary shall allocate amounts reserved under this section to
  public housing agencies on the basis of a competition among public housing
  agencies applying for such amounts. The competition shall be based on--
  `(i) the management capability of the public housing agency to carry out
  the redesign, reconstruction, or redevelopment;
  `(ii) the expected term of the useful life of the project or building
  after redesign, reconstruction or redevelopment; and
  `(iii) the likelihood of achieving full occupancy within the projects or
  buildings of the agency that are to be assisted under this paragraph.
  `(D) The Secretary shall establish limitations on the total costs of any
  project or building receiving amounts under this paragraph for redesign,
  reconstruction, and redevelopment. The cost limitations shall not be
  related to the total development cost system for new development or to
  the cost limits for modernization and shall recognize the higher direct
  costs of such work.
  `(E) Assistance may not be provided under this paragraph for any project
  or building assisted under section 14.
  `(F)(i) For each fiscal year for which amounts are reserved or
  appropriated for the purposes of this paragraph, the Secretary shall
  establish performance goals to evaluate the effectiveness of the use of
  such amounts. The goals shall--
  `(I) be designed to maximize the effectiveness of the expenditures in a
  quantifiable manner; and
  `(II) describe the number of units to be redesigned, redeveloped, and
  reconstructed with such amounts and improvements in the management of
  projects so assisted to be accomplished with such amounts.
  `(ii) Not later than 60 days after the end of each such fiscal year, the
  Secretary shall submit a report to the Congress, which shall  describe the
  performance goals established for the fiscal year, the activities carried
  out with such amounts, and a statement of whether the performance goals
  were met. If the performance goals were not met, the report shall contain--
  `(I) an explanation of why the goals were not met and a description of any
  managerial deficiencies or legal problems that contributed to not meeting
  such goals;
  `(II) plans and a schedule for achieving the level of performance under
  such performance goals;
  `(III) recommendations for legislative or regulatory changes necessary to
  achieve the performance goals or improve performance; and
  `(IV) a statement of whether the performance goals established for the
  fiscal year were impractical or infeasible, and, if so, the factors that
  contributed and resulted in establishing such impractical or infeasible
  goals and recommendations of actions to meet such goals, which may include
  changing the goals or altering or eliminating the program under this
  paragraph for major reconstruction of projects.'.
  (b) MODERNIZATION AND DISPOSITION REQUIREMENTS-
  (1) MODERNIZATION- Section 14(c) of the United States Housing Act of 1937
  (42 U.S.C. 1437l(c)) is amended--
  (A) in the matter preceding paragraph (1)--
  (i) by inserting `buildings of' after `for'; and
  (ii) by striking `which';
  (B) in each of paragraphs (1), (2), (3), and (4), by inserting `which
  projects' after the paragraph designation;
  (C) in paragraph (3), by striking `and' at the end;
  (D) by redesignating paragraph (4) as paragraph (5); and
  (E) by inserting after paragraph (3) the following new paragraph:
  `(4) which buildings are not assisted under section 5(j)(2); and'.
  (2) DEMOLITION AND DISPOSITION- Section 18(a) of the United States Housing
  Act of 1937 (42 U.S.C. 1437q(a)) is amended--
  (A) in paragraph (1), by striking `or' at the end;
  (B) in paragraph (2), by striking the period at the end and inserting `;
  or'; and
  (C) by adding at the end the following new paragraph:
  `(3) in the case of an application proposing demolition or disposition
  of any portion of a public housing project, assisted at any time under
  section 5(j)(2)--
  `(A) such assistance has not been provided for the portion of the project to
  be demolished or disposed within the 10-year period ending upon submission
  of the application; or
  `(B) the property's retention is not in the best interest of the tenants
  or the public housing agency because of extraordinary changes in the
  area surrounding the project or other extraordinary circumstances of
  the project.'.
  (c) REGULATIONS- The Secretary shall issue regulations necessary to carry
  out the amendments made by this section as provided under section 191 of
  this Act.
SEC. 112. PUBLIC HOUSING TENANT PREFERENCES.
  Section 6(c)(4)(A)(i) of the United States Housing Act of 1937 (42
  U.S.C. 1437d(c)(4)(A)(i)) is amended by striking `70 percent' and inserting
  `50 percent'.
SEC. 113. REFORM OF PUBLIC HOUSING MANAGEMENT.
  (a) INDEPENDENT MANAGEMENT ASSESSMENT- Section 6(j)(2) of the United States
  Housing Act of 1937 (42 U.S.C. 1437d(j)(2)) is amended--
  (1) by redesignating subparagraph (B) as subparagraph (C);
  (2) by inserting after subparagraph (A) the following new subparagraph:
  `(B)(i) Upon designating a public housing agency as troubled pursuant to
  subparagraph (A) and determining that an assessment under this subparagraph
  will not duplicate any review conducted under section 14(p), the Secretary
  shall provide for an on-site, independent assessment of the management of
  the agency.
  `(ii) To the extent the Secretary deems appropriate (taking into account an
  agency's performance under the indicators specified under paragraph (1)), the
  assessment team shall also consider issues relating to the agency's resident
  population and physical inventory, including the extent to which (I) the
  agency's comprehensive plan prepared pursuant to section 14 adequately and
  appropriately addresses the rehabilitation needs of the agency's inventory,
  (II) residents of the agency are involved in and informed of significant
  management decisions, and (III) any projects in the agency's inventory
  are severely distressed and eligible for assistance pursuant to section 24.
  `(iii) An independent assessment under this subparagraph shall be carried
  out by a team of knowledgeable individuals selected by the Secretary
  (referred to in this section as the `assessment team') with expertise in
  public housing and real estate management. In conducting an assessment,
  the assessment team shall consult with the residents and with public
  and private entities in the jurisdiction in which the public housing
  is located. The assessment team shall provide to the Secretary and the
  public housing agency a written report, which shall contain, at a minimum,
  recommendations for such management improvements as are necessary to
  eliminate or substantially remedy existing deficiencies.'; and
  (3) in subparagraph (C), as so redesignated by paragraph (1)--
  (A) by striking `agency setting forth' and inserting the following:
  `agency, after reviewing the report submitted pursuant to subparagraph
  (B) and consulting with the agency's assessment team. Such agreement shall
  set forth'; and
  (B) by inserting before the second sentence the following new flush sentence:
`To the extent the Secretary deems appropriate (taking into account an
agency's performance under the indicators specified under paragraph (1)),
such agreement shall also set forth a plan for enhancing resident involvement
in the management of the public housing agency.'.
  (b) ADDITIONAL STATUTORY REMEDIES- Section 6(j)(3)(A) of the United States
  Housing Act of 1937 (42 U.S.C. 1437d(j)(3)(A)) is amended--
  (1) in clause (i), by inserting after `agents' the first place it appears the
  following: `(which may be selected by existing tenants through administrative
  procedures established by the Secretary)';
  (2) at the end of clause (ii), by striking `and';
  (3) by redesignating clause (iii) as clause (iv);
  (4) by inserting after clause (ii) the following new clause:
  `(iii) solicit competitive proposals from other public housing agencies
  and private entities with experience in construction management in
  the eventuality that such agencies or firms may be needed to oversee
  implementation of assistance made available under section 14 for the housing;
  and'; and
  (5) by adding at the end the following new flush sentence:
`Residents of a public housing agency designated as troubled pursuant to
paragraph (2)(A) may petition the Secretary in writing to take 1 or more of
the actions referred to in this subparagraph. The Secretary shall respond to
such petitions in a timely manner with a written description of the actions,
if any, the Secretary plans to take and, where applicable, the reasons why
such actions differ from the course proposed by the residents.'.
  (c) RESOURCES- Section 6(j)(3) of the United States Housing Act of 1937
  (42 U.S.C. 1437d(j)(3)) is amended--
  (1) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and
  (D), respectively; and
  (2) by inserting after subparagraph (A) the following new subparagraph:
  `(B) The Secretary may make available to receivers and other entities
  selected or appointed pursuant to this paragraph such assistance as is
  necessary to remedy the substantial deterioration of living conditions in
  individual public housing developments or other related emergencies that
  endanger the health, safety and welfare of the residents.'.
  (d) ANNUAL REPORTS- Section 6(j)(5)(E) of the United States Housing Act of
  1937 (42 U.S.C. 1437d(j)(4)(E)), as so redesignated by subsection (d)(1),
  is amended by inserting before the semicolon the following: `, including
  an accounting of the authorized funds that have been expended to support
  such actions'.
  (e) APPLICABILITY-
  (1) ASSESSMENT OF RESIDENT MANAGEMENT CORPORATIONS- Section 6(j)(1) of
  the United States Housing Act of 1937 (42 U.S.C. 1437d(j)(1)) is amended--
  (A) in the first sentence, by inserting `and resident management
  corporations' before the period;
  (B) in the third sentence, by inserting `and resident management
  corporations' after `agencies'; and
  (C) in the fourth sentence, by striking `indicators.' and inserting
  `indicators for public housing agencies, to the extent practicable:'.
  (2) PROCEDURES- Section 6(j)(2) of the United States Housing Act of 1937,
  as amended by subsection (a) of this section, is further amended by adding
  at the end the following new subparagraph:
  `(D) The Secretary shall apply the provisions of this paragraph to resident
  management corporations as well as public housing agencies.'.
SEC. 114. PUBLIC HOUSING OPERATING SUBSIDIES.
  (a) AUTHORIZATION OF APPROPRIATIONS- Section 9(c) of the United States
  Housing Act of 1937 (42 U.S.C. 1437g(c)) is amended to read as follows:
  `(c)(1) There are authorized to be appropriated for purposes of providing
  annual contributions under this section $2,282,436,000 for fiscal year
  1993 and $2,378,298,312 for fiscal year 1994.
  `(2) There are also authorized to be appropriated to provide annual
  contributions under this section, in addition to amounts under paragraph
  (1), such sums as may be necessary for each of fiscal years 1993 and 1994,
  to provide each public housing agency with the difference between (A) the
  amount provided to the agency from amounts appropriated pursuant to paragraph
  (1), and (B) all funds for which the agency is eligible under the performance
  funding system without adjustments for estimated or unrealized savings.
  `(3) In addition to amounts under paragraphs (1) and (2), there are
  authorized to be appropriated for annual contributions under this section to
  provide for the costs of the adjustments to income and adjusted income under
  the amendments made by sections 573(b) and (c) of the Cranston-Gonzalez
  National Affordable Housing Act such sums as may be necessary for fiscal
  years 1993 and 1994.'.
  (b) ADJUSTMENT OF PERFORMANCE FUNDING SYSTEM- Section 9(a)(3)(A) of the
  United States Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(A)) is amended
  by inserting after the period at the end the following new sentence:
  `Notwithstanding sections 583(a) and 585(a) of title 5, United States
  Code (as added by section 3(a) of the Negotiated Rulemaking Act of 1990),
  any proposed regulation providing for amendment, alteration, adjustment,
  or other change to the performance funding system relating to vacant
  public housing units shall be issued pursuant to a negotiated rulemaking
  procedure under subchapter IV of chapter 5 of such title (as added by
  section 3(a) of the Negotiated Rulemaking Act of 1990), and the Secretary
  shall establish a negotiated rulemaking committee for development of any
  such proposed regulations.'.
  (c) ENERGY SAVINGS- Section 9(a)(3)(B)(i) of the United States Housing Act of
  1937 is amended by inserting before the semicolon at the end the following:
  `, and in subsequent years, if the energy savings are cost-effective,
  the Secretary may continue the sharing arrangement with the public housing
  agency for a period not to exceed 6 years'.
SEC. 115. PUBLIC HOUSING VACANCY REDUCTION.
  (a) FUNDING- Section 14(p)(5) of the United States Housing Act of 1937
  (42 U.S.C. 1437l(p)(5)) is amended to read as follows:
  `(5)(A) Of any amounts available under this section in each of fiscal years
  1993 and 1994 (after amounts are reserved pursuant to subsection (k)(1)),
  an amount equal to 4 percent of such remaining funds shall be available
  in each such fiscal year for the purposes under subparagraph (B).
  `(B) Of such amounts available under subparagraph (A) in each such fiscal
  year--
  `(i) 20 percent shall be available only for carrying out activities under
  section 6(j); and
  `(ii) 80 percent shall be available for carrying out this subsection.'.
  (b) SCOPE OF PROGRAM- Section 14(p)(1) of the United States Housing Act
  of 1937 (42 U.S.C. 1437l(p)(1)) is amended--
  (1) by striking `or that' and inserting `, that'; and
  (2) by inserting after `6(j),' the following: `or for which a receiver
  has been appointed pursuant to section 6(j)(3),'.
  (c) VACANCY REDUCTION ASSISTANCE- Section 14(p)(4) of the United States
  Housing Act of 1937 (42 U.S.C. 1437l(p)(4)) is amended--
  (1) in subparagraph (B), by inserting before the semicolon the following: `,
  except that the Secretary may provide assistance to a public housing agency
  designated as a troubled agency for the purposes under this subparagraph
  only if the Secretary determines that the agency is making substantial
  progress in remedying management deficiencies, if any, or that the agency
  has provided reasonable assurances that such progress will be made'; and
  (2) in subparagraph (C), by inserting before the semicolon the following: `,
  except that the Secretary may provide assistance to a public housing agency
  designated as a troubled agency for the purposes under this subparagraph
  only if the Secretary determines that the agency is making substantial
  progress in remedying management deficiencies, if any, or that the agency
  has provided reasonable assurances that such progress will be made'.
  (d) AVAILABILITY OF ASSISTANCE- Section 14(p)(4) of the United States
  Housing Act of 1937 (42 U.S.C. 1437l(p)(4)) is amended by striking the
  first comma and all that follows through the second comma and inserting
  `, subject to the availability of amounts under paragraph (6),'.
  (e) USE OF AMOUNTS FOR ASSESSMENT TEAMS- Section 14(p)(3) of the United
  States Housing Act of 1937 (42 U.S.C. 1437l(p)(3)) is amended by adding
  at the end the following new subparagraph:
  `(D) The Secretary may use amounts made available under paragraph (6)
  for any travel and administrative expenses of assessment teams under
  this paragraph.'.
  (f) ASSESSMENT TEAM- The second sentence of section 14(p)(3)(A) of the
  United States Housing Act of 1937 (42 U.S.C. 1437l(p)(3)(A)) is amended--
  (1) by striking `and' after `Development' and inserting a comma; and
  (2) by striking `who' and inserting `and officials of the public housing
  agency, all of whom'.
  (g) RESERVATION OF ANNUAL CONTRIBUTIONS FOR ACTIVITIES UNDER PLAN- Section
  14(p) of the United States Housing Act of 1937 (42 U.S.C. 1437l(p))
  is amended--
  (1) by redesignating paragraphs (3), (4), and (5) (as amended by the
  preceding provisions of this section) as paragraphs (4), (5), and (6),
  respectively; and
  (2) by inserting after paragraph (2) the following new paragraph:
  `(3)(A) Upon the expiration of the 24-month period beginning upon the
  receipt of assistance under paragraph (5) by a public housing agency,
  the Secretary shall, after reviewing the progress made in complying with
  the plan, reserve from the annual contribution attributable to each unit
  vacant for the 24-month period an amount determined by the Secretary
  but not exceeding 80 percent of such contribution. The Secretary may not
  reserve any amounts under this subparagraph for any vacant dwelling unit
  that is vacant because of modernization, reconstruction, or lead-based
  paint reduction activities.
  `(B) The Secretary shall deposit any amounts reserved under subparagraph (A)
  in a separate account established on behalf of the public housing agency,
  and such amounts shall be available to the agency only for the purpose of
  carrying out activities in compliance with the vacancy reduction plan of
  the agency.
  `(C) If, after the expiration of the 24-month period beginning upon the
  reservation under subparagraph (A) of amounts for a public housing agency,
  the Secretary determines that the agency has not made significant progress
  to comply with the provisions of the vacancy reduction plan of the agency,
  the amount remaining in the account for the agency established under
  subparagraph (B) shall be recaptured by the Secretary.'.
  (h) TECHNICAL CORRECTIONS- Section 14(p)(2) of the United States Housing
  Act of 1937 (42 U.S.C. 1437l(p)(2)) is amended--
  (1) in clause (D), by striking `modernization, reconstruction' and inserting
  `comprehensive modernization, major reconstruction'; and
  (2) in clause (E), by striking `the modernization' and inserting `the
  comprehensive modernization'.
SEC. 116. PUBLIC HOUSING DEMOLITION AND DISPOSITION.
  (a) COORDINATION WITH TENANTS- Section 18(b)(1) of the United States
  Housing Act of 1937 (42 U.S.C. 1437p(b)(1)) is amended by inserting `of
  the project or portion of the project covered by the application' after
  `tenant cooperative'.
  (b) REPLACEMENT PLAN- Section 18(b)(3) of the United States Housing Act
  of 1937 (42 U.S.C. 1437p(b)(3)) is amended--
  (1) in subparagraph (A)--
  (A) in clause (ii), by inserting before the semicolon at the end the
  following: `to the extent available; or if such assistance is not available,
  in the case of an application proposing demolition or disposition of 200
  or more units, the use of available project-based assistance under section
  8 having a term of not less than 5 years';
  (B) in clause (iii), by inserting before the semicolon at the end the
  following: `to the extent available; or if such assistance is not available,
  in the case of an application proposing demolition or disposition of 200
  or more units, the use of available project-based assistance under other
  Federal programs having a term of not less than 5 years'; and
  (C) in clause (v), by inserting before the semicolon the following: `to the
  extent available; or if such assistance is not available, in the case of
  an application proposing demolition or disposition of 200 or more units,
  the use of tenant-based assistance under section 8 (excluding vouchers
  under section 8(o)) having a term of not less than 5 years';
  (2) in subparagraph (G), by striking the period at the end and inserting
  a semicolon;
  (3) by redesignating subparagraphs (B) through (G) as subparagraphs (C)
  through (H), respectively;
  (4) by inserting after subparagraph (A) the following new subparagraph:
  `(B) in the case of an application proposing demolition or disposition of
  200 or more units, shall provide that (notwithstanding the limitation under
  section 8(d)(2)(A) on the amount of project-based assistance provided by
  an agency)--
  `(i) not less than 50 percent of such additional dwelling units shall
  be provided through the acquisition or development of additional public
  housing dwelling units or through project-based assistance; and
  `(ii) not more than 50 percent of such additional dwelling units shall
  be provided through tenant-based assistance under section 8 (excluding
  vouchers under section 8(o)) having a term of not less than 5 years;'; and
  (5) by adding at the end the following new flush matter:
`except that, in any 5-year period, a public housing agency may demolish not
more than the lesser of 5 dwelling units or 5 percent of the total dwelling
units owned and operated by the public housing agency, without providing an
additional dwelling unit for each such public housing dwelling unit to be
demolished, but only if the space occupied by the demolished unit is used
for meeting the service or other needs of public housing residents.'.
  (c) SET-ASIDES FOR REPLACEMENT HOUSING- Section 18 of the United States
  Housing Act of 1937 (42 U.S.C. 1437p) is amended--
  (1) by redesignating subsection (e) as subsection (f); and
  (2) by inserting after subsection (d) the following new subsection:
  `(e)(1) In each of fiscal years 1993 and 1994, the Secretary may reserve
  from any budget authority appropriated for such year for assistance under
  section 8 that is available for families not currently receiving such
  assistance not more than 10 percent of such budget authority for providing
  replacement housing under subsection (b)(3)(A) for units demolished or
  disposed of pursuant to this section.
  `(2) In each of fiscal years 1993 and 1994, the Secretary may reserve
  from any budget authority appropriated for such year for development of
  public housing under section 5(a)(2) not more than the lesser of 30 percent
  of such budget authorization or $150,000,000, for providing replacement
  housing under subsection (b)(3)(A) for units demolished or disposed of
  pursuant to this section.'.
  (d) YOLO COUNTY HOUSING AUTHORITY- The Secretary of Housing and Urban
  Development shall approve the application for disposition by the Yolo
  County Housing Authority (CA30-PO-003 and CA30-PO44-099), provided that the
  application states that the tenant councils, resident management corporation,
  and tenant cooperative, if any, shall be given appropriate opportunities
  to purchase the new replacement units, which shall be available and ready
  for occupancy before the disposition of the existing subject units. The
  new units shall be considered public housing for the purposes of the
  United States Housing Act of 1937 for which the Secretary shall provide
  annual contributions for operation using any amounts made available under
  section 9(c).
SEC. 117. PUBLIC HOUSING RESIDENT MANAGEMENT.
  Section 20(f)(3) of the United States Housing Act of 1937 (42
  U.S.C. 1437r(f)(3)) is amended to read as follows:
  `(3) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to carry out this subsection $4,750,000 for fiscal year 1993 and $4,949,500
  for fiscal year 1994.'.
SEC. 118. PUBLIC HOUSING HOMEOWNERSHIP.
  (a) HOMEOWNERSHIP ASSISTANCE- Section 21(a)(2)(C) of the United States
  Housing Act of 1937 (42 U.S.C. 1437s(a)(2)(C)) is amended--
  (1) in the first sentence, by striking `the effective date of the regulations
  implementing title III of this Act' and inserting `February 4, 1991'; and
  (2) in the second sentence--
  (A) by striking `effective'; and
  (B) by striking `such Act' and inserting `the Cranston-Gonzalez National
  Affordable Housing Act'.
  (b) CONDITIONS OF PURCHASE- Section 21(a)(3)(C) of the United States
  Housing Act of 1937 (42 U.S.C. 1437s(a)(3)(C)) is amended--
  (1) in the first sentence, by striking `the effective date of the regulations
  implementing title III of this Act' and inserting `February 4, 1991'; and
  (2) in the second sentence--
  (A) by striking `effective'; and
  (B) by striking `such title' and inserting `the Cranston-Gonzalez National
  Affordable Housing Act'.
SEC. 119. PUBLIC HOUSING FAMILY INVESTMENT CENTERS.
  Section 22(k) of the United States Housing Act of 1937 (42 U.S.C. 1437t(k))
  is amended to read as follows:
  `(k) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to carry out this section $25,000,000 for fiscal year 1993 and $26,050,000
  for fiscal year 1994.'.
SEC. 120. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.
  Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is
  amended by adding at the end the following new section:
`SEC. 24. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.
  `(a) PROGRAM AUTHORITY- The Secretary may make--
  `(1) planning grants under subsection (c) to enable applicants to develop
  revitalization programs for severely distressed public housing in accordance
  with this section; and
  `(2) implementation grants under subsection (d) to carry out revitalization
  programs for severely distressed public housing in accordance with this
  section.
  `(b) DESIGNATION OF ELIGIBLE PROJECTS-
  `(1) IDENTIFICATION- Not later than 90 days after the date of enactment of
  the Housing and Community Development Act of 1992, public housing agencies
  shall identify, in such form and manner as the Secretary may prescribe,
  any public housing projects that they consider to be severely distressed
  public housing for purposes of receiving assistance under this section.
  `(2) REVIEW BY SECRETARY- The Secretary shall review the projects identified
  pursuant to paragraph (1) to ascertain whether the projects are severely
  distressed housing (as such item is defined in subsection (h)).  Not later
  than 180 days after the date of enactment of this section, the Secretary
  shall publish a list of those projects that the Secretary determines are
  severely distressed public housing.
  `(3) APPEAL OF SECRETARY'S DETERMINATION- The Secretary shall establish
  procedures for public housing agencies to appeal the Secretary's
  determination that a project identified by a public housing agency is not
  severely distressed.
  `(c) PLANNING GRANTS-
  `(1) IN GENERAL- The Secretary may make planning grants under this subsection
  to applicants for the purpose of developing revitalization programs for
  severely distressed public housing under this section.
  `(2) AMOUNT- The amount of a planning grant under this subsection may not
  exceed $200,000 per project, except that the Secretary may for good cause
  approve a grant in a higher amount.
  `(3) ELIGIBLE ACTIVITIES- A planning grant may be used for activities to
  develop revitalization programs for severely distressed public housing,
  including--
  `(A) studies of the different options for revitalization, including the
  feasibility, costs and neighborhood impact of such options;
  `(B) providing technical or organizational support to ensure resident
  involvement in all phases of the planning and implementation processes;
  `(C) improvements to stabilize the development, including security
  investments;
  `(D) conducting workshops to ascertain the attitudes and concerns of the
  neighboring community;
  `(E) preliminary architectural and engineering work;
  `(F) planning for economic development, job training and self-sufficiency
  activities that promote the economic self-sufficiency of residents under
  the revitalization program;
  `(G) designing a suitable replacement housing plan, in situations where
  partial or total demolition is considered;
  `(H) planning for necessary management improvements; and
  `(I) preparation of an application for an implementation grant under
  this section.
  `(4) APPLICATIONS- An application for a planning grant shall be submitted
  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--
  `(A) a request for a planning grant, specifying the activities proposed,
  the schedule for completing the activities, the personnel necessary to
  complete the activities and the amount of the grant requested;
  `(B) a description of the applicant and a statement of its qualifications;
  `(C) identification and description of the project involved, and a
  description of the composition of the tenants, including family size
  and income;
  `(D) a certification by the public official responsible for submitting
  the comprehensive housing affordability strategy under section 105 of
  the Cranston-Gonzalez National Affordable Housing Act that the proposed
  activities are consistent with the approved housing strategy of the State
  or unit of general local government within which the project is located; and
  `(E) 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.
  `(5) SELECTION CRITERIA- The Secretary shall, by regulation, establish
  selection criteria for a national competition for assistance under this
  subsection, which shall include--
  `(A) the qualities or potential capabilities of the applicant;
  `(B) the extent of resident interest and involvement in the development
  of a revitalization program for the project;
  `(C) the extent of involvement of local public and private entities in
  the development of a revitalization program for the project and in the
  provision of supportive services to project residents;
  `(D) the potential of the applicant for developing a successful and
  affordable revitalization program and the suitability of the project for
  such a program;
  `(E) national geographic diversity among housing for which applicants are
  selected to receive assistance;
  `(F) the extent of the need for and potential impact of the revitalization
  program; and
  `(G) such other factors that the Secretary determines are appropriate for
  purposes of carrying out the program established by this section in an
  effective and efficient manner.
  `(6) NOTIFICATION- The Secretary shall notify each applicant, not later
  than 6 months after the date of the submission of the application, whether
  the application is approved or disapproved.
  `(d) IMPLEMENTATION GRANTS-
  `(1) IN GENERAL- The Secretary may make implementation grants under this
  subsection to applicants for the purpose of carrying out revitalization
  programs for severely distressed public housing under this section.
  `(2) ELIGIBLE ACTIVITIES- Implementation grants may be used for activities
  to carry out revitalization programs for severely distressed public housing,
  including--
  `(A) architectural and engineering work;
  `(B) the redesign, reconstruction, or redevelopment of the severely
  distressed public housing development, including the site on which the
  development is located;
  `(C) covering the administrative costs of the applicant, which may not
  exceed such portion of the assistance provided under this subsection as
  the Secretary may prescribe;
  `(D) any necessary temporary relocation of tenants during the activity
  specified under subparagraph (B);
  `(E) payment of legal fees;
  `(F) economic development activities that promote the economic
  self-sufficiency of residents under the revitalization program;
  `(G) necessary management improvements;
  `(H) transitional security activities; and
  `(I) any necessary support services, except that not more than 15 percent
  of any grant under this subsection may be used for such purpose.
  `(3) APPLICATION- An application for a implementation grant shall
  be submitted by an applicant 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--
  `(A) a request for an implementation grant, specifying the amount of the
  grant requested and its proposed uses;
  `(B) a description of the applicant and a statement of its qualifications;
  `(C) identification and description of the project involved, and a
  description of the composition of the tenants, including family size
  and income;
  `(D) a certification by the public official responsible for submitting
  the comprehensive housing affordability strategy under section 105 of
  the Cranston-Gonzalez National Affordable Housing Act that the proposed
  activities are consistent with the approved housing strategy of the State
  or unit of general local government within which the project is located; and
  `(E) 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.
  `(4) SELECTION CRITERIA- The Secretary shall, by regulation, establish
  selection criteria for a national competition for assistance under this
  subsection, which shall include--
  `(A) the qualities or potential capabilities of the applicant;
  `(B) the extent of resident involvement in the development of a
  revitalization program for the project;
  `(C) the extent of involvement of local public and private entities in
  the development of a revitalization program for the project and in the
  provision of supportive services to project residents;
  `(D) the potential of the applicant for developing a successful and
  affordable revitalization program and the suitability of the project for
  such a program;
  `(E) national geographic diversity among housing for which applicants are
  selected to receive assistance;
  `(F) the extent of the need for and potential impact of the revitalization
  program; and
  `(G) such other factors that the Secretary determines are appropriate for
  purposes of carrying out the program established by this subtitle in an
  effective and efficient manner.
  `(5) NOTIFICATION- The Secretary shall notify each applicant, not later
  than 6 months after the date of the submission of the application, whether
  the application is approved or disapproved.
  `(e) EXCEPTIONS TO GENERAL PROGRAM REQUIREMENTS-
  `(1) LONG-TERM VIABILITY- The Secretary may waive or revise rules established
  under this title governing rents, income eligibility, and other areas of
  public housing management, to permit a public housing agency to undertake
  measures that enhance the long-term viability of a severely distressed
  public housing project revitalized under this section.
  `(2) SELECTION OF TENANTS- For projects revitalized under this section,
  a public housing agency may select tenants pursuant to a local system
  of preferences, in lieu of selecting tenants pursuant to the preferences
  specified under section 6(c)(4)(A)(i). Such local system shall be established
  in writing and shall respond to local housing needs and priorities as
  determined by the public housing agency.  The public housing agency shall
  hold 1 or more public hearings to obtain the views of low-income tenants
  and other interested parties on the housing needs and priorities of the
  agency's jurisdiction.
  `(f) OTHER PROGRAM REQUIREMENTS-
  `(1) COST LIMITATIONS- Subject to the provisions of this section, the
  Secretary--
  `(A) shall establish cost limitations on eligible activities under this
  section sufficient to provide for effective revitalization programs; and
  `(B) may establish other cost limitations on eligible activities under
  this section.
  `(2) ECONOMIC DEVELOPMENT- Not more than an aggregate of $250,000 from
  amounts made available under subsections (c) and (d) may be used for economic
  development activities under subsections (c) and (d) for any project,
  except that the Secretary may for good cause waive the applicability of
  this paragraph for a project.
  `(g) ADMINISTRATION- For the purpose of carrying out the revitalization
  of severely distressed public housing in accordance with this section,
  the Secretary shall establish within the Department of Housing and Urban
  Development an Office of Severely Distressed Public Housing Revitalization.
  `(h) DEFINITIONS- For the purposes of this section:
  `(1) APPLICANT- The term `applicant' means--
  `(A) any public housing agency that is not designated as troubled pursuant
  to section 6(j)(2);
  `(B) any public housing agency or private housing management agent selected,
  or receiver appointed pursuant, to section 6(j)(3);
  `(C) any public housing agency that is designated as troubled pursuant to
  section 6(j)(2), if such agency acts in concert with a private nonprofit
  organization, another public housing agency that is not designated as a
  troubled agency, resident management corporation or other entity approved
  by the Secretary; and
  `(D) any public housing agency that is designated as troubled pursuant to
  section 6(j)(2) that--
  `(i) is so designated principally for reasons that will not affect the
  capacity of the agency to carry out a revitalization program;
  `(ii) is making substantial progress toward eliminating the deficiencies
  of the agency; or
  `(iii) is otherwise determined by the Secretary to be capable of carrying
  out a revitalization program.
  `(2) PRIVATE NONPROFIT CORPORATION- The term `private nonprofit organization'
  means any private nonprofit organization (including a State or locally
  chartered nonprofit organization) that--
  `(A) is incorporated under State or local law;
  `(B) has no part of its net earnings inuring to the benefit of any member,
  founder, contributor, or individual;
  `(C) complies with standards of financial accountability acceptable to
  the Secretary; and
  `(D) has among its purposes significant activities related to the provision
  of decent housing that is affordable to very low-income families.
  `(3) PUBLIC HOUSING AGENCY- The term `public housing agency' has the
  meaning given the term in section 3(b), except that it does not include
  any Indian housing authority.
  `(4) RESIDENT MANAGEMENT CORPORATION- The term `resident management
  corporation' means a resident management corporation established in
  accordance with the requirements of the Secretary under section 20.
  `(5) SEVERELY DISTRESSED PUBLIC HOUSING- The term `severely distressed
  public housing' means a public housing project--
  `(A) that--
  `(i) requires major redesign, reconstruction or redevelopment, or partial
  or total demolition, to correct serious deficiencies in the original design
  (including appropriately high population density), deferred maintenance,
  physical deterioration or obsolescence of major systems and other
  deficiencies in the physical plant of the project;
  `(ii) is occupied predominantly by families with children who are in a
  severe state of distress, characterized by such factors as high rates
  of unemployment, teenage pregnancy, single-parent households, long-term
  dependency on public assistance and minimal educational achievement;
  `(iii) is in a location for recurrent vandalism and criminal activity
  (including drug-related criminal activity); and
  `(iv) cannot remedy the elements of distress specified in clauses (i) through
  (iii) through assistance under other programs, such as the programs under
  section 9 or 14, or through other administrative means; or
  `(B) that--
  `(i) is owned by a public housing agency designated as troubled pursuant
  to section 6(j)(2);
  `(ii) has a vacancy rate, as determined by the Secretary, of 50 percent
  or more, unless the project or building is vacant because it is awaiting
  rehabilitation under a modernization program under section 14 that--
  `(I) has been approved and funded; and
  `(II) as determined by the Secretary, is on schedule and is expected to
  result in full occupancy of the project or building upon completion of
  the program; and
  `(iii) in the case of individual buildings, the building is, in the
  Secretary's determination, sufficiently separable from the remainder of the
  project to make use of the building feasible for purposes of this subtitle.
  `(i) ANNUAL REPORT- The Secretary shall submit to the Congress an annual
  report setting forth--
  `(1) the number, type, and cost of public housing units revitalized pursuant
  to this section;
  `(2) the status of projects identified as severely distressed public
  housing pursuant to subsection (b);
  `(3) the amount and type of financial assistance provided under and in
  conjunction with this section; and
  `(4) the recommendations of the Secretary for statutory and regulatory
  improvements to the program established by this section.'.
SEC. 121. CHOICE IN PUBLIC HOUSING MANAGEMENT.
  (a) PURPOSE- The purpose of this section is to encourage choice in management
  of distressed public housing projects by residents and increased resident
  management of public housing projects, as a means of improving living
  conditions in public housing projects, by providing for resident councils
  and resident management corporations to transfer the management of distressed
  projects to alternative managers.
  (b) AMENDMENT TO 1937 ACT- Title I of the United States Housing Act of 1937
  (42 U.S.C. 1437 et seq.) is amended by adding after section 24 (as added
  by section 120 of this Act) the following new section:
`SEC. 25. CHOICE IN PUBLIC HOUSING MANAGEMENT.
  `(a) SHORT TITLE- This section may be cited as the `Choice in Public
  Housing Management Act of 1992'.
  `(b) FUNDING-
  `(1) REHABILITATION AND REDEVELOPMENT GRANTS- From amounts reserved under
  section 14(k)(2) for each of fiscal years 1993 and 1994, the Secretary may
  reserve not more than $50,000,000 in each such fiscal year for activities
  under this section (which may include funding operating reserves for
  eligible housing transferred under this section). The Secretary may make
  grants to managers and ownership entities to rehabilitate eligible housing
  in accordance with this section, as appropriate.
  `(2) TECHNICAL ASSISTANCE- The Secretary may use up to 5 percent of the
  total amount reserved under paragraph (1) for any fiscal year to provide, by
  contract, technical assistance to residents of public housing and resident
  councils to help such residents and councils make informed choices about
  options for alternative management under this section.
  `(c) PROGRAM AUTHORITY-
  `(1) TRANSFER OF MANAGEMENT-
  `(A) IN GENERAL- The Secretary may approve not more than 25 applications
  submitted for fiscal years 1993 and 1994 by resident councils for the
  transfer of the management of distressed public housing projects, or one or
  more buildings within projects, that are owned or operated by troubled public
  housing agencies, from public housing agencies to alternative managers.
  `(B) REQUIRED VOTES- An application for such transfer may be submitted
  and approved only if a majority of the members of the board of the
  resident council has voted in favor of the proposed transfer of management
  responsibilities, and a majority of the residents has also voted in favor
  of the transfer in an election supervised by a disinterested third party.
  `(C) ASSISTANCE OF MANAGEMENT SPECIALIST- Any resident council seeking to
  transfer management of distressed public housing under this section shall,
  in cooperation with the public housing agency for such housing, select a
  qualified public housing management specialist to assist in identifying
  and acquiring a capable manager for the housing.
  `(2) REHABILITATION AND CAPITAL IMPROVEMENTS- The Secretary may make
  rehabilitation grants and provide capital improvement funding under
  subsection (e) in connection with the transfer of eligible housing to a
  manager under this section.
  `(d) OPERATING SUBSIDIES-
  `(1) AUTHORITY TO PROVIDE- The Secretary may make operating subsidies
  under section 9 available to managers under this section.
  `(2) AMOUNT OF SUBSIDY- The Secretary shall establish the amount of the
  operating subsidies made available to a manager based on the share for
  the housing under section 9 as determined by the Secretary.
  `(3) EFFECT ON PHA GRANT- Operating subsidies for any public housing agency
  transferring management under this section shall be reduced in accordance
  with the requirements of section 9.
  `(e) REHABILITATION GRANTS AND CAPITAL IMPROVEMENT FUNDING-
  `(1) REHABILITATION GRANTS- An application under subsection (f) may request
  approval of amounts set aside under subsection (b) for the rehabilitation
  of eligible housing. The manager and the Secretary shall enter into a
  contract governing the use of any such assistance provided.
  `(2) ANNUAL CAPITAL IMPROVEMENT FUNDING-
  `(A) AUTHORITY TO PROVIDE- The Secretary may make funding for capital
  improvements available annually from amounts under section 14 to managers
  of eligible housing. In accordance with the contract entered into pursuant
  to subsection (h), each manager receiving such funding shall establish a
  capital improvements reserve account and deposit in the account each year
  an amount not less than the annual amount of comprehensive grant funds
  it receives. Amounts in the reserve account may be used only for capital
  improvements and replacements.
  `(B) AMOUNT OF SUBSIDY- The Secretary shall establish the amount made
  available to a manager under paragraph (1) for capital improvements based
  on the share for the housing under the comprehensive grant formula and,
  to the extent practicable, the public housing agency's comprehensive grant
  plan, in accordance with section 14, as determined by the Secretary.
  `(C) LIMITATION IN THE CASE OF RECENT REHABILITATION- Where eligible housing
  has received rehabilitation funding under paragraph (1) or has otherwise
  been comprehensively modernized within 3 years before the effective date
  of the contract between the Secretary and the manager for management of
  the eligible housing, only the accrual portion of the comprehensive grant
  formula amount shall be available for payment to the manager.
  `(D) EFFECT ON PHA GRANT- The formula amount of a comprehensive grant for
  a public housing agency transferring the housing under this section shall
  be reduced in accordance with the requirements of section 14.
  `(3) RELATIONSHIP TO SECTION 14- The provisions of section 14 shall apply
  with respect to rehabilitation grants under paragraph (1) or capital
  improvement funding under paragraph (2); except that the Secretary may
  waive the applicability of any of the provisions of such section where
  such provisions are not appropriate to the assistance under this subsection.
  `(f) APPLICATION-
  `(1) FORM AND PROCEDURES-
  `(A) IN GENERAL- To be eligible for approval for transfer of management
  from a public housing agency to a manager and for a grant under subsection
  (e), a resident council shall submit an application to the Secretary in such
  form and in accordance with such procedures as the Secretary shall establish.
  `(B) PHA COMMENT ON APPLICATION- A resident council submitting an application
  shall provide the public housing agency that owns or operates the housing
  involved a reasonable opportunity to comment on the application, as the
  Secretary shall prescribe.
  `(C) PHA PROPOSAL- The public housing agency may present to the resident
  council a proposal for the continued management of the housing by the
  agency, and the resident council shall give reasonable consideration to
  any such proposal.
  `(2) MINIMUM REQUIREMENTS- The Secretary shall require that an application
  contain--
  `(A) a description of the resident council and documentation of its
  authority;
  `(B) documentation of the votes required under subsection (c)(1)(B);
  `(C) a description of the proposed manager selected by the applicant
  (in accordance with procedures established or approved by the Secretary)
  and documentation of its capacity to manage the eligible housing;
  `(D) a plan for carrying out the manager's responsibilities for managing
  the eligible housing;
  `(E) documentation that the project (or building or buildings) for which
  management transfer is proposed is eligible housing;
  `(F) documentation that each of the requirements under paragraph (1)(B)
  have been fulfilled;
  `(G)(i) if the application includes a request for a rehabilitation grant
  under subsection (e) (which shall be included in any application involving
  eligible housing that is 50 percent or more vacant), the basis for the
  estimate of the amount requested, including--
  `(I) the estimate of the eligible housing's need under the public housing
  agency's comprehensive plan (under section 14(e)(1)); and
  `(II) an explanation, where appropriate, if an amount higher than the
  amount planned by the agency is being requested; or
  `(ii) if the application does not include a request for a rehabilitation
  grant under subsection (e), a demonstration that needs for capital
  improvements and replacement for the housing can reasonably be expected
  to be funded from funding for capital improvements under subsection (e);
  `(H) if the manager proposes to administer a program to enable residents
  to achieve economic independence and self-sufficiency, a description of
  the program and evidence of commitment of resources to the program;
  `(I) an analysis showing that the planned rehabilitation will result in
  the long-term viability of the housing at a reasonable cost;
  `(J) a certification that the manager 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
  `(K) such other information that the Secretary considers appropriate.
  `(g) REVIEW AND APPROVAL BY THE SECRETARY-
  `(1) APPLICATIONS NOT REQUESTING REHABILITATION ASSISTANCE- In the case
  of applications for the transfer of management of public housing that do
  not include a request for rehabilitation assistance under subsection (e),
  the Secretary may approve an application that meets the requirements of
  subsection (f)(2) and this section.
  `(2) APPLICATIONS REQUESTING REHABILITATION GRANTS- In the case of
  applications that include a request for rehabilitation assistance under
  subsection (e), the Secretary shall select applicants for approval based
  on a national competition. The Secretary shall, by regulation, establish
  selection criteria for the competition which provide for separate rating of
  applicants under this paragraph and of applicants under this section, and for
  selections from a single list of all applicants. The criteria shall include--
  `(A) the quality of the plan for rehabilitating the eligible housing;
  `(B) the extent of the capacity or potential capacity of the proposed
  manager to manage the housing and to carry out the rehabilitation program;
  `(C) the extent to which a program is proposed to enable residents to
  achieve economic independence and self-sufficiency;
  `(D) the extent to which the planned rehabilitation will result in the
  long-term viability of the housing at a reasonable cost; and
  `(E) such other criteria as the Secretary may require.
  `(h) CONTRACT BETWEEN SECRETARY AND MANAGER-
  `(1) TERMS- After the Secretary approves an application, the Secretary
  shall enter into a contract with the manager for transfer of management
  of the eligible housing. In addition to other contract provisions required
  under this section, the contract shall--
  `(A) give the manager the right to receive operating subsidies under
  subsection (d) and capital improvement funding under subsection (e);
  `(B) require the manager to carry out all management responsibilities for
  the eligible housing, as provided in or required by the contract;
  `(C) require the manager to carry out, for the eligible housing, all
  management responsibilities applicable to public housing agencies owning or
  operating public housing projects, including (i) maintaining the units in
  decent, safe, and sanitary condition in accordance with any standards for
  public housing established or adopted by the Secretary, (ii) determining
  eligibility of applicants for occupancy of units subject to the requirements
  of this Act, (iii) terminating tenancy in accordance with the procedures
  applicable to the section 8 new construction program, and (iv) determining
  the amount of rent paid for units in accordance with this Act; and
  `(D) permit, but not require, the manager to select applicants from the
  public housing waiting list maintained by the public housing agency.
  `(2) EXTENSION, EXPIRATION, AND TERMINATION-
  `(A) IN GENERAL- The Secretary shall provide for a resident council that
  has entered into a contract under this subsection to--
  `(i) approve the renewal of the contract between the Secretary and the
  manager; or
  `(ii) disapprove renewal and submit an application to the Secretary, in
  accordance with subsection (f), proposing another manager, which may be
  the public housing agency.
  `(B) DEFAULT- If the Secretary determines that a manager is in default
  of its responsibilities under the contract, the Secretary may require
  the resident council to submit another application proposing a different
  manager, which may be the public housing agency.
  `(i) OTHER PROGRAM REQUIREMENTS-
  `(1) COST LIMITATIONS- The Secretary may establish cost limitations on
  activities under this section. The amount of rehabilitation funds under
  subsection (e)(1) that may be approved may not exceed the per unit cost
  limit applicable to the comprehensive grant program under section 14.
  `(2) DEMOLITION AND DISPOSITION NOT PERMITTED- A manager may not demolish
  or dispose of eligible housing under this section.
  `(3) CAPABILITY OF RESIDENT MANAGEMENT CORPORATIONS- To be eligible to
  become a manager under this section, a resident management corporation--
  `(A) shall demonstrate to the Secretary its ability to manage public
  housing effectively and efficiently, as determined by the Secretary,
  which shall include evidence of its most recent financial audit; or
  `(B) shall arrange for operation of the housing by a qualified management
  entity.
  `(4) LIMITATIONS ON PHA LIABILITY- A public housing agency shall not be
  liable for any act or failure to act by the manager or resident council.
  `(5) BONDING AND INSURANCE- Before assuming any management responsibility
  for eligible housing, a manager shall obtain fidelity bonding and insurance,
  or equivalent protection, in accordance with regulations and requirements
  established by the Secretary. Such bonding and insurance, or its equivalent,
  shall be adequate to protect the Secretary and the public housing agency
  against loss, theft, embezzlement, or fraudulent acts on the part of the
  manager or its employees.
  `(6) RESTRICTION ON DISPLACEMENT BEFORE TRANSFER- A public housing
  agency may not involuntarily displace, as determined by the Secretary,
  any resident of eligible housing during the period beginning on the date
  that an application under subsection (f) is submitted by a resident council,
  and ending upon transfer of management of the housing or, if the application
  is disapproved, the date of the disapproval.
  `(j) PERFORMANCE REVIEW AND COMPLIANCE-
  `(1) MONITORING- The Secretary shall monitor the performance of managers
  under this section and shall assess their management performance using
  the performance indicators established under section 6(j)(1).
  `(2) RECORDS, REPORTS, AND AUDITS OF MANAGERS-
  `(A) KEEPING OF RECORDS- Each manager and resident council under this
  subtitle shall keep such records as may be reasonably necessary to disclose
  the amount and the disposition by the manager of the proceeds of assistance
  received under this section and to ensure compliance with the requirements
  of this section.
  `(B) ACCESS TO DOCUMENTS-
  `(i) SECRETARY- The Secretary shall have access for the purpose of audit
  and examination to any books, documents, papers, and records of a manager,
  resident council, and public housing agency that are pertinent to assistance
  received under, and to the requirements of, this section.
  `(ii) GAO- The Comptroller General of the United States, and any duly
  authorized representatives of the Comptroller General, shall have access for
  the purpose of audit and examination to any books, documents, papers, and
  records of a manager and resident council that are pertinent to assistance
  received under, and to the requirements of, this section.
  `(C) REPORTING REQUIREMENTS- Each manager shall submit to the Secretary such
  reports as the Secretary determines appropriate to carry out the Secretary's
  responsibilities under this section, including an annual financial audit.
  `(D) ANNUAL REPORT- The Secretary shall submit an annual report to the
  Congress evaluating management transfers under this section compared to
  other methods of dealing with severely distressed public housing.
  `(k) NONDISCRIMINATION- No person in the United States shall, on the
  grounds of race, color, national origin, religion, or sex, be excluded
  from participation in, be denied the benefits of, or be subjected to
  discrimination under, any program or activity funded in whole or in part
  with funds made available under this section. Any prohibition against
  discrimination on the basis of age under the Age Discrimination Act of
  1975 or with respect to an otherwise qualified handicapped individual as
  provided in section 504 of the Rehabilitation Act of 1973 shall also apply
  to any such program or activity.
  `(l) RELATIONSHIP TO OTHER PROGRAMS-
  `(1) HOMEOWNERSHIP- After a transfer of management in accordance with this
  section, the eligible housing shall remain eligible for assistance under
  title III and for sale under section 5(h). Participation in a homeownership
  program shall be consistent with a contract between the Secretary and
  a manager.
  `(2) SELF-SUFFICIENCY- Where an application under subsection (f)
  proposes a program to enable residents to achieve economic independence
  and self-sufficiency, consistent with the objectives of the program under
  section 23, and demonstrates that the manager has the capacity to carry out
  a self-sufficiency program, the Secretary may approve such a program. Where
  such a program is approved, the Secretary shall authorize the manager to
  adopt policies consistent with section 23(d) (relating to maximum rents
  and escrow savings accounts) and section 23(e) (relating to effect of
  increases in family income).
  `(m) DEFINITIONS- For purposes of this section:
  `(1) The term `eligible housing' means a public housing project, or one
  or more buildings within a project, that--
  `(A) is owned or operated by a troubled public housing agency; and
  `(B) has been identified as severely distressed under section 24 of this Act.
In the case of an individual building, the building shall, in the determination
of the Secretary, be sufficiently separable from the remainder of the project
to make use of the building feasible for purposes of this section.
  `(2) The term `manager' means one of the following entities that has entered
  into a contract with the Secretary for the management of eligible housing
  under this section:
  `(A) A public or private nonprofit organization (including, as determined by
  the Secretary, such an organization sponsored by the public housing agency).
  `(B) A for-profit entity, if it has (i) demonstrated experience in providing
  low-income housing, and (ii) is participating in joint venture with an
  organization described in paragraph (3).
  `(C) A State or local government, including an agency or instrumentality
  thereof.
  `(D) A public housing agency (other than the public housing agency that
  owns the project).
The term does not include a resident council.
  `(3) The term `private nonprofit organization' means any private nonprofit
  organization (including a State or locally chartered nonprofit organization)
  that--
  `(A) is incorporated under State or local law;
  `(B) has no part of its net earnings inuring to the benefit of any member,
  founder, contributor, or individual;
  `(C) complies with standards of financial accountability acceptable to
  the Secretary; and
  `(D) has among its purposes significant activities related to the provision
  of decent housing that is affordable to low-income families.
The term includes resident management corporations.
  `(4) The term `public housing agency' has the meaning given such term in
  section 3(b), except that it does not include Indian housing authorities.
  `(5) The term `public nonprofit organization' means any public nonprofit
  entity, except the public housing agency that owns the eligible housing.
  `(6) The term `resident council' means any nonprofit organization or
  association that--
  `(A) is representative of the residents of the eligible 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 eligible housing.
  `(7) The term `resident management corporation' means a resident management
  corporation established in accordance with the requirements of the Secretary
  under section 20.
  `(8) The term `troubled public housing agency' means a public housing
  agency with 250 or more units that--
  `(A) has been designated as a troubled public housing agency for the
  current Federal fiscal year, and for the 2 preceding Federal fiscal years--
  `(i) under section 6(j)(2)(A)(i); or
  `(ii) before the implementation of such authority, under any other
  procedure for designating troubled public housing agencies that was used
  by the Secretary and is determined by the Secretary to be appropriate for
  purposes of this section; and
  `(B) has not met targets for improved performance under section 6(j)(2)(C).'.
SEC. 122. ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES.
  (a) EXEMPTION FROM NEW CONSTRUCTION LIMITATION- Section 201(c) of the
  United States Housing Act of 1937 (42 U.S.C. 1437aa(c)) is amended by
  inserting before the period at the end the following: `or section 6(h)
  of the United States Housing Act of 1937 (relating to a limitation on
  contracts involving new construction)'.
  (b) MODERNIZATION- Section 202(b)(2) of the United States Housing Act
  of 1937 (42 U.S.C. 1437bb(b)(2)) is amended by striking `single' in the
  second sentence.
  (c) PAYMENTS TO MUNICIPALITIES- Section 203(b) of the United States
  Housing Act of 1937 (42 U.S.C. 1437cc(b)) is amended by adding at the end
  the following new sentence: `Notwithstanding any other provision of this
  Act, the Secretary shall make annual payments from funds appropriated
  under section 9(c) to municipalities providing such roads, facilities,
  and systems in a amount equal to--
  `(1) 10 percent of the applicable shelter rent, minus the utility
  allowance; or
  `(2) $150,
whichever is greater, for each rental housing unit covered by this
subsection.'.
SEC. 123. PUBLIC HOUSING EARLY CHILDHOOD DEVELOPMENT SERVICES.
  Section 222(g) of the Housing and Urban-Rural Recovery Act of 1983 (12
  U.S.C. 1701z-6 note) is amended to read as follows:
  `(g) AUTHORIZATION OF APPROPRIATIONS- To the extent provided in appropriation
  Acts, of any amounts appropriated for fiscal year 1993 under section 103
  of the Housing and Community Development Act of 1974, $5,000,000 shall be
  available to carry out this section. To the extent approved in appropriation
  Acts, of any amounts appropriated for fiscal year 1994 under section 5(c)
  of the United States Housing Act of 1937 for grants for the development of
  public housing, $5,210,000 shall be available to carry out this section. Any
  such amounts shall remain available until expended.'.
SEC. 124. INDIAN HOUSING CHILDHOOD DEVELOPMENT SERVICES.
  (a) FUNDING- Section 518(a) of the Cranston-Gonzalez National Affordable
  Housing Act (12 U.S.C. 1701z-6 note) is amended by striking the subsection
  designation and all that follows through the end of the first sentence
  and inserting the following:
  `(a) FUNDING- To the extent provided in appropriation Acts, of any amounts
  appropriated under section 5(c) of the United States Housing Act of 1937 for
  fiscal year 1993 for public housing grants for Indian housing, $5,200,000
  may be used to carry out the demonstration program under this section. To
  the extent provided in appropriation Acts, of any amounts appropriated
  under section 5(c) of the United States Housing Act of 1937 for fiscal
  year 1994 for public housing grants for Indian housing, $5,418,400 may be
  used to carry out the demonstration program under this section.'.
  (b) ELIGIBLE RECIPIENTS- The second sentence of section 518(a) of the
  Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 1701z-6 note)
  is amended--
  (1) by inserting `, Indian housing authorities, and Indian tribes' after
  `nonprofit organizations'; and
  (2) by inserting `, housing authorities, and tribes' after `such
  organizations'.
SEC. 125. PUBLIC HOUSING ONE-STOP PERINATAL SERVICES DEMONSTRATION.
  Section 521(g) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 1437t note) is amended to read as follows:
  `(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  for carrying out the demonstration program under this section $200,000
  for fiscal year 1993 and $208,400 for fiscal year 1994.'.
SEC. 126. PUBLIC HOUSING YOUTH SPORTS PROGRAMS.
  (a) FUNDING FROM PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION FUNDS-
  Section 5130 of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11909) is
  amended by adding at the end the following new subsection:
  `(c) SET-ASIDE FOR YOUTH SPORTS PROGRAMS- Of any amount made available in
  any fiscal year to carry out this chapter, 5 percent of such amount shall be
  available for public housing youth sports program grants under section 520 of
  the Cranston-Gonzalez National Affordable Housing Act for such fiscal year.'.
  (b) ELIGIBILITY OF INSTITUTIONS OF HIGHER LEARNING-
  (1) IN GENERAL- Section 520(b) of the Cranston-Gonzalez National Affordable
  Housing Act (42 U.S.C. 11903a(b)) is amended--
  (A) in paragraph (6), by striking `and' at the end;
  (B) in paragraph (7), by striking the period at the end and inserting `;
  and'; and
  (C) by adding at the end the following new paragraph:
  `(8) institutions of higher learning that have never participated in a
  youth sports program assisted under this section.'.
  (2) TRANSPORTATION COSTS AS ELIGIBLE EXPENSE- Section 520(d) of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 11903a(d))
  is amended by adding at the end the following new paragraph:
  `(4) In the case only of an eligible entity described in subsection (b)(8),
  any transportation costs in connection with the program.'.
  (c) DEMONSTRATION PROGRAM- Of any amounts made available in fiscal year 1993
  for carrying out section 520 of the Cranston-Gonzalez National Affordable
  Housing Act, the Secretary of Housing and Urban Development shall provide not
  more than $500,000 for the program known as the `Success Through Academic
  and Recreational Support' program, administered by the City of Fort Myers,
  Florida, to demonstrate the effectiveness of programs that use trained
  counselors to run sports and academic activities for at-risk children,
  including children of low-income families residing in public housing. The
  grantee shall comply with all applicable program requirements under
  subsections (c), (d), (e), and (h) of such section. The Secretary shall
  evaluate the advantages of the program assisted under this subsection and
  determine how the program may provide a model for other cities conducting,
  or interested in conducting, similar activities.
SEC. 127. NATIONAL COMMISSION ON DISTRESSED PUBLIC HOUSING.
  (a) TERMINATION- Section 507 of the Department of Housing and Urban
  Development Reform Act of 1989 (12 U.S.C. 1715z-1a note) is amended by
  striking `upon the expiration of 18 months following the appointment of all
  the members under section 503(a)' and inserting `at the end of September
  30, 1992'.
  (b) AUDIT- Not later than December 30, 1992, the Comptroller General of
  the United States shall conduct an audit of the financial transactions
  of the National Commission on Distressed Public Housing to determine the
  use of any amounts received by the Commission from the Federal Government
  before October 1, 1992, and shall submit a report to the Congress regarding
  the results of the audit. The Comptroller General and any duly authorized
  representatives of the Comptroller General shall have access to, and the
  right to examine and copy, all records and other recorded information in
  any form, and to examine any property, within the possession and control of
  the Commission that the Comptroller General considers relevant to the audit.
SEC. 128. NATIONAL COMMISSION ON AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE
HAWAIIAN HOUSING.
  (a) AUTHORIZATION OF APPROPRIATIONS- The first sentence of section 605 of
  the Department of Housing and Urban Development Reform Act of 1989 (42
  U.S.C. 1437aa note) is amended to read as follows: `There is authorized
  to be appropriated to carry out this title $500,000 for fiscal year 1993.'.
  (b) EXTENSION OF TERMINATION DATE- Section 602(g) of the Department of
  Housing and Urban Development Reform Act of 1989 (12 U.S.C. 1437aa note)
  is amended by striking `upon the expiration of 18 months after all members
  of the Commission are appointed under paragraph (1)' and inserting `on
  October 1, 1993'.
SEC. 129. RENTAL ASSISTANCE FRAUD RECOVERIES.
  (a) IN GENERAL- Section 326(d) of the Housing and Community Development
  Amendments of 1981 (42 U.S.C. 1437f note) is amended to read as follows:
  `(d) RENTAL ASSISTANCE FRAUD RECOVERIES-
  `(1) AUTHORITY TO RETAIN RECOVERED AMOUNTS- The Secretary of Housing and
  Urban Development shall permit public housing agencies administering the
  housing assistance payments program under section 8 of the United States
  Housing Act of 1937 to retain, out of amounts obtained by the agencies
  from tenants that are due as a result of fraud and abuse, an amount
  (determined in accordance with regulations issued by the Secretary) equal
  to the greater of--
  `(A) 50 percent of the amount actually collected, or
  `(B) the actual, reasonable, and necessary expenses related to the
  collection, including costs of investigation, legal fees, and collection
  agency fees.
  `(2) USE- Amounts retained by an agency shall be made available for
  use in support of the affected program or project, in  accordance with
  regulations issued by the Secretary. Where the Secretary is the principal
  party initiating or sustaining an action to recover amounts from families
  or owners, the provisions of this section shall not apply.
  `(3) RECOVERY- Amounts may be recovered under this paragraph--
  `(A) by an agency through a lawsuit (including settlement of the lawsuit)
  brought by the agency or through court-ordered restitution pursuant to
  a criminal proceeding resulting from an agency's investigation where the
  agency seeks prosecution of a family or where an agency seeks prosecution
  of an owner; or
  `(B) through administrative repayment agreements with a family or owner
  entered into as a result of an administrative grievance procedure conducted
  by an impartial decisionmaker in accordance with section 6(k) of the United
  States Housing Act of 1937.'.
  (b) EFFECTIVE DATE- Subsection (a) shall apply with respect to actions by
  public housing agencies initiated on or after the date of the enactment
  of this Act.
SEC. 130. PROJECT-BASED ACCOUNTING.
  Section 502(c)(2) of the Cranston-Gonzalez National Affordable Housing
  Act (42 U.S.C. 1437d note) is amended by inserting before the period the
  following: `for public housing agencies with 500 or more units and not later
  than January 1, 1994 for public housing agencies with less than 500 units.
SEC. 131. SALE OF CERTAIN SCATTERED-SITE HOUSING.
  The Secretary of Housing and Urban Development shall authorize the Delaware
  State Housing Authority in the State of Delaware to sell scattered-site
  public housing of the Authority under the provisions of section 5(h) of the
  United States Housing Act of 1937.  Any proceeds from the disposition of
  such housing shall be used to purchase replacement scattered-site dwellings,
  which shall be considered public housing for the purposes of such Act and
  for which the Secretary shall provide annual contributions for operation,
  using amounts made available under section 9(c) of such Act.
SEC. 132. HOMEOWNERSHIP DEMONSTRATION PROGRAM IN OMAHA, NEBRASKA.
  (a) ESTABLISHMENT- The Secretary shall carry out a program to facilitate
  self-sufficiency and homeownership of single-family homes administered
  by the Housing Authority of the city of Omaha, in the State of Nebraska
  (in this section referred to as the `Housing Authority'), to demonstrate
  the effectiveness of promoting homeownership and providing support services.
  (b) PARTICIPATING PUBLIC HOUSING UNITS- For purposes of the demonstration
  program, the Secretary shall authorize the Housing Authority to designate
  single-family housing units for eventual homeownership. Over the term of
  the demonstration, the demonstration program may be applied to not more
  than 20 percent of the total number of public housing units administered
  by the Housing Authority. In conducting the demonstration, the Housing
  Authority shall affirmatively further fair housing objectives.
  (c) NONDISPLACEMENT- No person who is a tenant of public housing may be
  involuntarily relocated or displaced as a result of the demonstration
  program.
  (d) ECONOMIC SELF-SUFFICIENCY-
  (1) ESTABLISHMENT OF PARTICIPATION CRITERIA- The Housing Authority shall
  establish criteria for the participation of families in the demonstration
  program. Such criteria shall be based on factors that may reasonably be
  expected to predict a family's ability to succeed in the homeownership
  program established by this section.
  (2) CONTENTS OF PARTICIPATION CRITERIA- The criteria referred to in paragraph
  (1) shall include evidence of interest by the family in homeownership,
  the employment status and history of employment of family members, and
  maintenance by the family of the family's previous dwelling.
  (e) PROVISION OF SUPPORTIVE SERVICES- The Housing Authority shall ensure
  the availability of supportive services to each family participating in the
  demonstration program through its own resources and through coordination
  with Federal, State, and local agencies and private entities. Supportive
  services available under the demonstration program may include counseling,
  remedial education, education for completion of high school, job training
  and preparation, financial counseling emphasizing planning for homeownership,
  and any other appropriate services.
  (f) REPORTS TO CONGRESS-
  (1) BIENNIAL REPORT- Upon the expiration of the 2-year period beginning on
  the date of enactment of this Act, and each 2-year period thereafter, the
  Secretary of Housing and Urban Development shall submit to the Congress a
  report evaluating the effectiveness of the demonstration program established
  under this section.
  (2) FINAL REPORT- Not later than 60 days after termination of the
  demonstration program pursuant to subsection (h), the Secretary shall
  submit to the Congress a final report  evaluating the effectiveness of
  the demonstration program.
  (g) REGULATIONS- Not later than the expiration of the 90-day period
  beginning on the date of the enactment of this Act, the Secretary shall
  issue interim regulations to carry out this section, which shall take
  effect upon issuance. The Secretary shall issue final regulations to
  carry out this subtitle after notice and opportunity for public comment
  regarding the interim regulations, pursuant to the provisions of section
  553 of title 5, United States Code (notwithstanding subsections (a)(2),
  (b)(B), and (d)(3) of such section). The duration of the period for public
  comment shall not be less than 60 days, and the final regulations shall be
  issued not later than the expiration of the 60-day period beginning upon
  the conclusion of the comment period and shall take effect upon issuance.
  (h) TERMINATION- The demonstration program established under this section
  shall terminate 10 years after the date of the enactment of this Act.
Subtitle C--Section 8 Assistance
SEC. 141. ELIGIBILITY OF LOW-INCOME FAMILIES TO RECEIVE RENTAL ASSISTANCE.
  (a) CERTIFICATES- The first sentence of section 8(c)(4) of the United
  States Housing Act of 1937 (42 U.S.C. 1437f(c)(4)) is amended by inserting
  before the first comma the following: `or by a family that qualifies to
  receive assistance under subsection (b) pursuant to section 223 or 226 of
  the Low-Income Housing Preservation and Resident Homeownership Act of 1990'.
  (b) VOUCHERS- Section 8(o)(3)(A) of the United States Housing Act of 1937
  (42 U.S.C. 1437f(o)(3)(A)) is amended--
  (1) by striking `or' at the end of clause (iii); and
  (2) by inserting before the period the following: `, or (v) a family that
  qualifies to receive a voucher under section 223 or 226 of the Low-Income
  Housing Preservation and Resident Homeownership Act of 1990'.
SEC. 142. CONTRACT ADJUSTMENTS FOR EXPIRATION OF PROPERTY TAX EXEMPTION.
  Section 8(c)(2)(B) of the United States Housing Act of 1937 (42
  U.S.C. 1437f(c)(2)(B)) is amended by inserting after the first sentence the
  following new sentence: `The Secretary shall make additional adjustments
  in the maximum monthly rent for units under contract (subject to the
  availability of appropriations for contract amendments) to the extent the
  Secretary determines such adjustments are necessary to reflect increases
  in the actual and necessary expenses of owning and maintaining the units
  that have resulted from the expiration of a real property tax exemption.'.
SEC. 143. TERMINATION OF CONTRACTS.
  The last sentence of section 8(c)(9) of the United States Housing Act of
  1937 (42 U.S.C. 1437f(c)(9)) is amended by inserting before the period at
  the end the following: `, and such term shall include termination of the
  contract for business reasons'.
SEC. 144. PREFERENCES FOR VETERANS WITH DISABILITIES THAT PREVENT USE OF HOME.
  (a) CERTIFICATES- Section 8(d)(1)(A)(ii) of the United States Housing Act
  of 1937 (42 U.S.C. 1437f(d)(1)(A)(ii)) is amended--
  (1) by striking `(V)' and inserting `(VI)'; and
  (2) by inserting after `adoption is not available;' the following: `(V)
  assisting veterans who are eligible and have applied for assistance, will
  use the assistance for a dwelling unit designed for the handicapped, and,
  upon discharge or eligibility for discharge from a hospital or nursing home,
  have physical disability which, because of the configuration of their homes,
  prevents them from access to or use of their homes;'.
  (b) VOUCHERS- The third sentence of section 8(o)(3)(B) of the United States
  Housing Act of 1937 (42 U.S.C. 1437f(o)(3)(B)) is amended--
  (1) by striking `(v)' and inserting `(vi)'; and
  (2) by inserting after `adoption is not available;' the following: `(v)
  assisting veterans who are eligible and have applied for assistance, will
  use the assistance for a dwelling unit designed for the handicapped, and,
  upon discharge or eligibility for discharge from a hospital or nursing home,
  have physical disability which, because of the configuration of their homes,
  prevents them from access to or use of their homes;'.
SEC. 145. TERMINATION OF TENANCY FOR CRIMINAL ACTIVITY.
  Section 8(d)(1)(B)(iii) of the United States Housing Act of 1937 (42
  U.S.C. 1437f(d)(1)(B)(iii)) is amended--
  (1) by inserting `, any criminal activity that threatens the health, safety,
  or right to peaceful enjoyment of their residences by persons residing in
  the immediate vicinity of the premises,' before `or any drug-related'; and
  (2) by striking `public housing tenant' and inserting `tenant of any unit'.
SEC. 146. DEFINITIONS OF `PROJECT-BASED ASSISTANCE' AND `TENANT-BASED
ASSISTANCE'.
  Section 8(f) of the United States Housing Act of 1937 (42 U.S.C. 1437f(f))
  is amended--
  (1) in paragraph (4), by striking `and' at the end;
  (2) in paragraph (5), by striking the period at the end and inserting a
  semicolon; and
  (3) by adding at the end the following new paragraphs:
  `(6) the term `project-based assistance' means rental assistance under
  subsection (b) that is attached to the structure pursuant to subsection
  (d)(2); and
  `(7) the term `tenant-based assistance' means rental assistance under
  subsection (b) or (o) that is not project-based assistance.'.
SEC. 147. PORTABILITY.
  Section 8(r)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437f(r))
  is amended by inserting before the period at the end the following: `;
  except that any family not living within the jurisdiction of a public
  housing agency at the time that such family applies for assistance from
  such agency shall, during the 12-month period beginning upon the receipt of
  any tenant-based rental assistance made available on behalf of the family,
  use such assistance to rent an eligible dwelling unit located within the
  jurisdiction served by such public housing agency'.
SEC. 148. FAMILY UNIFICATION ASSISTANCE.
  Section 8(x)(1) of the United States Housing Act of 1937 (12
  U.S.C. 1437f(x)(1)) is amended to read as follows:
  `(1) INCREASE IN BUDGET AUTHORITY- The budget authority available under
  section 5(c) for assistance under section 8(b) is authorized to be increased
  by $100,000,000 on or after October 1, 1992, and by $104,200,000 on or
  after October 1, 1993.'.
SEC. 149. IMPLEMENTATION OF AMENDMENTS TO PROJECT-BASED CERTIFICATE PROGRAM.
  The Secretary of Housing and Urban Development shall issue any final
  regulations necessary to carry out the amendments made by section 547 of
  the Cranston-Gonzalez National Affordable Housing Act not later than the
  expiration of the 180-day period beginning on the date of the enactment
  of this Act. The regulations shall be issued after notice and opportunity
  for public comment pursuant to the provisions of section 553 of title 5,
  United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3)
  of such section) and shall take effect upon the expiration of the 30-day
  period beginning upon issuance.
SEC. 150. EFFECTIVENESS OF SECTION 8 ASSISTANCE FOR PHA-OWNED UNITS.
  The amendments made by section 548 of the Cranston-Gonzalez National
  Affordable Housing Act shall be effective notwithstanding the absence of
  any regulations issued by the Secretary of Housing and Urban Development.
SEC. 151. IMPLEMENTATION OF INCOME ELIGIBILITY PROVISIONS FOR SECTION 8 NEW
CONSTRUCTION UNITS.
  The Secretary of Housing and Urban Development shall issue any final
  regulations necessary to carry out the provisions of section 555 of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437f note)
  not later than the expiration of the 180-day period beginning on the
  date of the enactment of this Act. The regulations shall be issued after
  notice and opportunity for public comment pursuant to the provisions of
  section 553 of title 5, United States Code (notwithstanding subsections
  (a)(2), (b)(B), and (d)(3) of such section) and shall take effect upon
  the expiration of the 30-day period beginning upon issuance.
SEC. 152. MOVING TO OPPORTUNITY FOR FAIR HOUSING.
  (a) AUTHORITY- Using any amounts available under subsection (e), the
  Secretary of Housing and Urban Development shall carry out a demonstration
  program to provide tenant-based assistance under section 8 of the United
  States Housing Act of 1937 to assist very low-income families with children
  who reside in public housing or housing receiving project-based assistance
  under section 8 of the United States Housing Act of 1937 to move out of
  areas with high concentrations of persons living in poverty to areas with
  low concentrations of such persons. The demonstration program carried out
  under this section shall compare and contrast the costs associated with
  implementing such a program (including the costs of counseling, supportive
  services, housing assistance payments and other relevant program elements)
  with the costs associated with the routine implementation of the section
  8 tenant-based rental assistance programs. The Secretary shall enter into
  annual contributions contracts with public housing agencies to administer
  housing assistance payments contracts under the demonstration.
  (b) ELIGIBLE CITIES-
  (1) IN GENERAL- The Secretary shall carry out the demonstration only in
  cities with populations exceeding 350,000 that are located in consolidated
  metropolitan statistical areas (as designated by the Director of the Office
  of Management and Budget) having populations exceeding 1,500,000.
  (2) 1993- Notwithstanding paragraph (1), in fiscal year 1993, only the 5
  cities selected for the demonstration under the item relating to `HOUSING
  PROGRAMS--ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING (INCLUDING RESCISSION
  OF FUNDS)' of title II of the Departments of Veterans Affairs and Housing
  and Urban Development, and Independent Agencies Appropriations Act, 1992
  (105 Stat. 745), and the City of Los Angeles, California, shall be eligible
  for the demonstration under this section.
  (c) SERVICES- The Secretary shall enter into contracts with nonprofit
  organizations to provide counseling and services in connection with the
  demonstration.
  (d) REPORTS-
  (1) BIENNIAL- Not later than the expiration of the 2-year period beginning
  on the date of the enactment of this Act (and biennially thereafter),
  the Secretary shall submit interim reports to the Congress evaluating
  the effectiveness of the demonstration program under this section. The
  interim reports shall include a statement of the number of persons served,
  the level of counseling and the types of services provided, the cost of
  providing such counseling and services, updates on the employment record
  of families assisted under the program, and any other information the
  Secretary considers appropriate in evaluating the demonstration.
  (2) FINAL- Not later than September 30, 2004, the Secretary shall submit a
  final report to the Congress describing the long-term housing, employment,
  and educational achievements of the families assisted under the demonstration
  program. Such report shall also contain an assessment of such achievements
  for a comparable population of section 8 recipients who have not received
  assistance under the demonstration program.
  (e) FUNDING- The budget authority available under section 5(c) of the United
  States Housing Act of 1937 for tenant-based assistance under section 8 of
  such Act is authorized to be increased by $50,000,000, on or after October
  1, 1992, and by $52,100,000, on or after October 1, 1993, to carry out
  the demonstration under this section. Any amounts made available under
  this paragraph shall be used in connection with the demonstration under
  this section.
  (f) IMPLEMENTATION- The Secretary may, by notice published in the Federal
  Register, establish any requirements necessary to carry out the demonstration
  under this section and the amendment made by this section. The Secretary
  shall publish such notice not later than the expiration of the 90-day period
  beginning on the date of the enactment of this Act and shall submit a copy
  of such notice to the Congress not less than 15 days before publication.
SEC. 153. DIRECTIVE TO FURTHER FAIR HOUSING OBJECTIVES UNDER CERTIFICATE
AND VOUCHER PROGRAMS.
  Not later than 2 years after the date of the enactment of this Act,
  the Secretary of Housing and Urban Development, in consultation with
  individuals representing fair housing organizations, low-income tenants,
  public housing agencies, and other interested parties, shall--
  (1) review and comment upon the study prepared by the Comptroller General
  of the United States pursuant to section 558(3) of the Cranston-Gonzalez
  National Affordable Housing Act;
  (2) evaluate the implementation and effects of existing demonstration and
  judicially mandated programs that help minority families receiving section
  8 certificates and vouchers move out of areas with high concentrations
  of minority persons living in poverty to areas with low concentrations,
  including how such programs differ from the routine implementation of the
  section 8 certificate and voucher programs;
  (3) independently assess factors (including the adequacy of section 8
  fair market rentals, the level of counseling provided by public housing
  agencies, the existence of racial and ethnic discrimination by landlords)
  that may impede the geographic dispersion of families receiving section
  8 certificates and vouchers;
  (4) identify and implement any administrative revisions that would enhance
  geographic dispersion and tenant choice and incorporate the positive elements
  of various demonstration and judicially mandated mobility programs; and
  (5) submit to the Congress a report describing its findings under
  paragraphs (1), (2), and (3), the actions taken under paragraph (4), and
  any recommendations for additional demonstration, research, or legislative
  action.
SEC. 154. HOUSING ASSISTANCE IN JEFFERSON COUNTY, TEXAS.
  Section 213(e) of the Housing and Community Development Act of 1974 (42
  U.S.C. 1439(e)) is amended by striking `the Park Central New Community
  Project or in adjacent areas that are recognized by the unit of general local
  government in which such Project is located as being included within the Park
  Central New Town in Town Project.' and inserting `Jefferson County, Texas.'.
SEC. 155. COMPLIANCE OF CERTAIN ACTIVITIES WITH LIMITATIONS ON PROJECT-BASED
ASSISTANCE.
  Rehabilitation activities undertaken by the Committee for Dignity and
  Fairness for the Homeless Housing Development, Inc. in connection with 46
  dwelling units that were renovated for permanent housing for the homeless
  and that are located in Philadelphia, Pennsylvania, are hereby deemed
  to have been conducted pursuant to an agreement with the Secretary of
  Housing and Urban Development under clause (ii) of the third sentence
  of section 8(d)(2)(A) of the United States Housing Act of 1937 (42
  U.S.C. 1437f(d)(2)(A)).
Subtitle D--Other Programs
SEC. 161. PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION.
  (a) AUTHORIZATION OF APPROPRIATIONS- The first sentence of section 5130(a)
  of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11909(a)) is amended to read as
  follows: `There are authorized to be appropriated to carry out this chapter
  $175,000,000 for fiscal year 1993 and $182,350,000 for fiscal year 1994.'.
  (b) FISCAL YEAR 1993 SET-ASIDES- Section 5130(b) of the Anti-Drug Abuse
  Act of 1988 (42 U.S.C. 11909(b)) is amended--
  (1) by striking `SET-ASIDE FOR ASSISTED HOUSING' and inserting `SET-ASIDES';
  and
  (2) by inserting after the period at the end the following new sentence:
  `Notwithstanding any other provision of law, of any amounts appropriated
  for drug elimination grants under this chapter for fiscal years 1993
  and 1994, not more than 6.25 percent shall be available for grants for
  federally assisted low-income housing and 5.0 percent shall be available
  for public housing youth sports program grants under section 520 of the
  Cranston-Gonzalez National Affordable Housing Act.'.
  (c) DRUG-RELATED ACTIVITY IN OTHER PHA-OWNED HOUSING- Section 5124 of the
  Anti-Drug Abuse Act of 1988 (42 U.S.C. 11903) is amended--
  (1) by inserting `(a) PUBLIC AND ASSISTED HOUSING- ' before `Grants'; and
  (2) by adding at the end the following new subsection:
  `(b) OTHER PHA-OWNED HOUSING- Notwithstanding any other provision of this
  chapter, grants under this chapter may be used to eliminate drug-related
  crime in housing owned by public housing agencies that is not public
  housing assisted under the United States Housing Act of 1937 and is not
  otherwise federally assisted, for the activities described in paragraphs
  (1) through (7) of subsection (a), but only if--
  `(1) the housing is located in a high intensity drug trafficking area
  designated pursuant to section 1005 of this Act; and
  `(2) the public housing agency owning the housing demonstrates, to the
  satisfaction of the Secretary, that drug-related activity at the housing
  has a detrimental effect on or about the real property comprising any
  public or other federally assisted low-income housing.'.
  (d) ELIGIBILITY OF PUBLIC HOUSING RESIDENT MANAGEMENT CORPORATIONS-
  Chapter 2 of subtitle C of title 5 of the Anti-Drug Abuse Act of 1988
  (42 U.S.C. 11901 et seq.) is amended--
  (1) in section 5123, by inserting after `(including Indian Housing
  Authorities)' the  following: `, public housing resident management
  corporations that are principally managing, as determined by the Secretary,
  public housing projects owned by public housing agencies,';
  (2) in paragraph (7) of section 5124(a) (as so designated by subsection
  (c) of this section), by inserting after `(7)' the following: `where a
  public housing agency receives a grant,'; and
  (3) in the first sentence of section 5125(a), by inserting after `public
  housing agency' the following: `, a public housing resident management
  corporation,'.
  (e) PUBLICATION OF REGULATIONS- Not later than 30 days after the date of the
  enactment of this Act, the Secretary shall publish such final regulations
  as may be necessary to implement section 5130(b) of the Public and Assisted
  Housing Drug Elimination Act of 1990 (42 U.S.C. 11909(a)).
SEC. 162. HOUSING COUNSELING.
  (a) COUNSELING SERVICES- The first sentence of section 106(a)(3) of the
  Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(a)(3)) is
  amended by striking `except that' and all that follows through the period
  and inserting `except that for such purposes there are authorized to be
  appropriated $6,025,000 for fiscal year 1993 and $6,278,050 for fiscal
  year 1994. Of the amounts appropriated for each of fiscal years 1993 and
  1994, up to $500,000 shall be available for use for counseling and other
  activities in connection with the demonstration program under section 152
  of the Housing and Community Development Act of 1992.'.
  (b) EMERGENCY HOMEOWNERSHIP COUNSELING-
  (1) AUTHORIZATION OF APPROPRIATIONS- The first sentence of section 106(c)(8)
  of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(c)(8))
  is amended to read as follows: `There are authorized to be appropriated
  to carry out this section $7,000,000 for fiscal year 1993 and $7,294,000
  for fiscal year 1994, of which amounts $1,000,000 shall be available in
  each such fiscal year to carry out paragraph (5)(D).'.
  (2) EXTENSION OF PROGRAM- Section 106(c)(9) of the Housing and Urban
  Development Act of 1968 (12 U.S.C. 1701x(c)(9)) is amended by striking
  `September 30, 1992' and inserting `September 30, 1994'.
  (3) AVAILABILITY- Section 106(c)(3)(A) of the Housing and Urban Development
  Act of 1968 (12 U.S.C. 1701x(c)(3)(A)) is amended--
  (A) in clause (i), by striking `and' at the end; and
  (B) by adding at the end the following new clause:
  `(iii) have a high incidence of mortgages involving principal obligations
  (including such initial service charges, appraisal, inspection, and
  other fees as the Secretary shall approve) in excess of 97 percent of the
  appraised value of the properties that are insured pursuant to section
  203 of the National Housing Act; and'.
  (4) ELIGIBILITY- Section 106(c)(4) of the Housing and Urban Development
  Act of 1968 (12 U.S.C. 1701x(c)(4)) is amended by adding at the end the
  following new flush sentence:
`An applicant for a mortgage shall be eligible for homeownership counseling
under this subsection if the applicant is a first-time homebuyer who meets the
requirements of section 303(b)(1) of the Cranston-Gonzalez National Affordable
Housing Act and the mortgage involves a principal obligation (including such
initial service charges, appraisal, inspection, and other fees as the Secretary
shall approve) in excess of 97 percent of the appraised value of the property
and is to be insured pursuant to section 203 of the National Housing Act.'.
  (5) NOTIFICATION OF AVAILABILITY- Section 106(c)(5)(A) of the Housing and
  Urban Development Act of 1968 (12 U.S.C. 1701x(c)(5)(A)) is amended by
  striking subparagraph (A) and inserting the following new subparagraph:
  `(A) NOTIFICATION OF AVAILABILITY OF HOMEOWNERSHIP COUNSELING-
  `(i) REQUIREMENT- Except as provided in subparagraph (C), the creditor of
  a loan (or proposed creditor) shall provide notice under clause (ii) to
  (I) any eligible homeowner who fails to pay any amount by the date the
  amount is due under a home loan, and (II) any applicant for a mortgage
  described in paragraph (4).
  `(ii) CONTENT- Notification under this subparagraph shall--
  `(I) notify the homeowner or mortgage applicant of the availability of
  any homeownership counseling offered by the creditor (or proposed creditor);
  `(II) if provided to an eligible mortgage applicant, state that completion
  of a counseling program is required for insurance pursuant to section 203
  of the National Housing Act; and
  `(III) notify the homeowner or mortgage applicant of the availability of
  homeownership counseling provided by nonprofit organizations approved by
  the Secretary and experienced in the provision of homeownership counseling,
  or provide the toll-free telephone number described in subparagraph (D)(i).'.
  (6) ANNUAL UPDATE OF LIST OF COUNSELING ORGANIZATIONS FOR TOLL-FREE NUMBER-
  The matter preceding subclause (I) in section 106(c)(5)(D)(i) of the Housing
  and Urban Development Act of 1968 (12 U.S.C. 1701x(c)(5)(D)(i)) is amended
  by inserting `, which shall be updated annually,' after `organizations'.
  (c) PREPURCHASE AND FORECLOSURE-PREVENTION COUNSELING DEMONSTRATION-
  Section 106(d)(12) of the Housing and Urban Development Act of 1968 (12
  U.S.C. 1701x(d)(12)) is amended to read as follows:
  `(12) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
  appropriated to carry out this subsection $365,000 for fiscal year 1993
  and $380,330 for fiscal year 1994.'.
  (d) ELIGIBILITY FOR COUNSELING ASSISTANCE UNDER HOUSING AND URBAN
  DEVELOPMENT ACT OF 1968 AND CERTIFICATION AND TRAINING PROGRAM- Section
  106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x)
  is amended by adding at the end the following new subsections:
  `(e) CERTIFICATION-
  `(1) REQUIREMENT FOR ASSISTANCE- An organization may not receive assistance
  for counseling activities under subsection (a)(1)(iii), (a)(2), (c),
  or (d), unless the organization provides such counseling, to the extent
  practicable, by individuals who have been certified by the Secretary under
  this subsection as competent to provide such counseling.
  `(2) STANDARDS AND EXAMINATION- The Secretary shall, by regulation, establish
  standards and procedures for testing and certifying counselors. Such
  standards and procedures shall require for certification that the individual
  shall demonstrate, by written examination (as provided under subsection
  (f)(4)), competence to provide counseling in each of the following areas:
  `(A) Financial management.
  `(B) Property maintenance.
  `(C) Responsibilities of homeownership and tenancy.
  `(D) Fair housing laws and requirements.
  `(E) Housing affordability.
  `(F) Avoidance of, and responses to, rental and mortgage delinquency and
  avoidance of eviction and mortgage default.
  `(3) ENCOURAGEMENT- The Secretary shall encourage organizations engaged in
  providing homeownership and rental counseling that do not receive assistance
  under this section to employ individuals to provide such counseling who
  are certified under this subsection or meet the certification standards
  established under this subsection.
  `(f) HOMEOWNERSHIP AND RENTAL COUNSELOR TRAINING AND CERTIFICATION PROGRAMS-
  `(1) ESTABLISHMENT- To the extent amounts are provided in appropriations
  Acts under paragraph (7), the Secretary shall contract with an appropriate
  entity (which may be a nonprofit organization) to carry out a program
  under this subsection to train individuals to provide homeownership and
  rental counseling and to administer the examination under subsection (e)(2)
  and certify individuals under such subsection.
  `(2) ELIGIBILITY AND SELECTION-
  `(A) ELIGIBILITY- To be eligible to provide the training and certification
  program under this subsection, an entity shall have demonstrated experience
  in training homeownership and rental counselors.
  `(B) SELECTION- The Secretary shall provide for entities meeting the
  requirements of subparagraph (A) to submit applications to provide the
  training and certification program under this subsection. The Secretary
  shall select an application based on the ability of the entity to--
  `(i) establish the program as soon as possible on a national basis, but
  not later than the date under paragraph (6);
  `(ii) minimize the costs involved in establishing the program; and
  `(iii) effectively and efficiently carry out the program.
  `(3) TRAINING- The Secretary shall require that training of counselors
  under the program under this subsection be designed and coordinated
  to prepare individuals for successful completion of the examination for
  certification under subsection (e)(2). The Secretary, in consultation with
  the entity selected under paragraph (2)(B), shall establish the curriculum
  and standards for training counselors under the program.
  `(4) CERTIFICATION- The entity selected under paragraph (2)(B) shall
  administer the examination under subsection (e)(2) and, on behalf of the
  Secretary, certify individuals successfully completing the examination. The
  Secretary, in consultation with such entity, shall establish the content
  and format of the examination.
  `(5) FEES- Subject to the approval of the Secretary, the entity
  selected under paragraph (2)(B) may establish and impose reasonable
  fees for participation in the training provided under the program and
  for examination and certification under subsection (e)(2), in an amount
  sufficient to cover any costs of such activities not covered with amounts
  provided under paragraph (7).
  `(6) TIMING- The entity selected under paragraph (2)(B) to carry out the
  training and certification program shall establish the program as soon as
  possible after such selection, and shall make training and certification
  available under the program on a national basis not later than the expiration
  of the 1-year period beginning upon such selection.
  `(7) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to carry out this subsection $2,000,000 for fiscal year 1993 and $2,084,000
  for 1994.'.
  (e) REGULATIONS- The Secretary of Housing and Urban Development shall issue
  any regulations necessary to carry out the amendments made by subsection
  (d), not later than the expiration of the 6-month period beginning on the
  date of the enactment of this Act.
SEC. 163. USE OF FUNDS RECAPTURED FROM REFINANCING STATE AND LOCAL FINANCE
PROJECTS.
  IN GENERAL- Section 1012 of the Stewart B. McKinney Homeless Assistance
  Amendments Act of 1988 (42 U.S.C. 1437f note) is amended to read as follows:
`SEC. 1012. USE OF FUNDS RECAPTURED FROM REFINANCING STATE AND LOCAL FINANCE
PROJECTS.
  `(a) DEFINITION OF QUALIFIED PROJECT- For purposes of this section, the term
  `qualified project' means any State financed project or local government
  or local housing agency financed project, that--
  `(1) was--
  `(A) provided a financial adjustment factor under section 8 of the United
  States Housing Act of 1937; or
  `(B) constructed or substantially rehabilitated pursuant to assistance
  provided under a contract under section 8(b)(2) of the United States Housing
  Act of 1937 (as in effect on September 30, 1983) entered into during any
  of calendar years 1979 through 1984; and
  `(2) is being refinanced.
  `(b) AVAILABILITY OF FUNDS- The Secretary shall make available to the State
  housing finance agency in the State in which a qualified project is located,
  or the local government or local housing agency initiating the refinancing
  of the qualified project, as applicable, an amount equal to 50 percent of
  the amounts recaptured from the project (as determined by the Secretary on
  a project-by-project basis). Notwithstanding any other provision of law,
  such amounts shall be used only for providing decent, safe, and sanitary
  housing affordable for very low-income families and persons.
  `(c) APPLICABILITY AND BUDGET COMPLIANCE-
  `(1) RETROACTIVITY- This section shall apply to refinancings of projects
  for which settlement occurred or occurs before, on, or after the date
  of the enactment of the Housing and Community Development Act of 1992,
  subject to the provisions of paragraph (2).
  `(2) BUDGET COMPLIANCE- This section shall apply only to the extent or in
  such amounts as are provided in appropriation Acts.'.
SEC. 164. HOPE FOR YOUTH.
  Title IV of the Cranston-Gonzalez National Affordable Housing Act (42
  U.S.C. 1437aaa note et seq.) is amended by adding at the end the following
  new subtitle:
`Subtitle D--HOPE for Youth: Youthbuild
`SEC. 451. STATEMENT OF PURPOSE.
  `It is the purpose of this subtitle--
  `(1) to expand the supply of permanent affordable housing for homeless
  individuals and members of low- and very low-income families by utilizing
  the energies and talents of economically disadvantaged young adults;
  `(2) to provide economically disadvantaged young adults with opportunities
  for meaningful work and service to their communities in helping to meet
  the housing needs of homeless individuals and members of low- and very
  low-income families;
  `(3) to enable economically disadvantaged young adults to obtain
  the education and employment skills necessary to achieve economic
  self-sufficiency; and
  `(4) to foster the development of leadership skills and commitment to
  community development among young adults in low-income communities.
`SEC. 452. PROGRAM AUTHORITY.
  `The Secretary may make--
  `(1) planning grants to enable applicants to develop Youthbuild programs; and
  `(2) implementation grants to enable applicants to carry out Youthbuild
  programs.
`SEC. 453. PLANNING GRANTS.
  `(a) GRANTS- The Secretary is authorized to make planning grants to
  applicants for the purpose of developing Youthbuild programs under this
  subtitle. The amount of a planning grant under this section may not exceed
  $150,000, except that the Secretary may for good cause approve a grant in
  a higher amount.
  `(b) ELIGIBLE ACTIVITIES- Planning grants may be used for activities to
  develop Youthbuild programs including--
  `(1) studies of the feasibility of a Youthbuild program;
  `(2) establishment of consortia between youth training and education programs
  and housing owners or developers, including any organizations specified
  in section 457(2), which will participate in the Youthbuild program;
  `(3) identification and selection of a site for the Youthbuild program;
  `(4) preliminary architectural and engineering work for the Youthbuild
  program;
  `(5) identification and training of staff for the Youthbuild program;
  `(6) planning for education, job training, and other services that will
  be provided as part of the Youthbuild program;
  `(7) other planning, training, or technical assistance necessary in advance
  of commencing the Youthbuild program; and
  `(8) preparation of an application for an implementation grant under
  this subtitle.
  `(c) APPLICATION-
  `(1) FORM AND PROCEDURES- 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) MINIMUM REQUIREMENTS- 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, the personnel
  necessary to complete the activities, and the amount of the grant requested;
  `(B) a description of the applicant and a statement of its qualifications,
  including a description of the applicant's past experience with housing
  rehabilitation or construction and with youth and youth education and
  employment training programs, and its relationship with local unions and
  apprenticeship programs, and other community groups;
  `(C) identification and description of potential sites for the program and
  the construction or rehabilitation activities that would be undertaken
  at such sites; potential methods for identifying and recruiting youth
  participants; potential educational and job training activities,
  work opportunities and other services for participants; and potential
  coordination with other Federal, State, and local housing and youth
  education and employment training activities including activities conducted
  by Indian tribes;
  `(D) a certification by the public official responsible for submitting
  the comprehensive housing affordability strategy under section 105 of
  the Cranston-Gonzalez National Affordable Housing Act that the proposed
  activities are consistent with the approved housing strategy of the State
  or unit of general local government within which the project is located; and
  `(E) 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.
  `(d) SELECTION CRITERIA- The Secretary shall, by regulation, 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 potential of the applicant for developing a successful and
  affordable Youthbuild program;
  `(3) the need for the prospective program, as determined by the degree of
  economic distress--
  `(A) of the community from which participants would be recruited (such as
  poverty, youth unemployment, and number of individuals who have dropped
  out of high school); and
  `(B) of the community in which the housing proposed to be constructed
  or rehabilitated would be located (such as incidence of homelessness,
  shortage of affordable housing, and poverty); and
  `(4) such other factors that the Secretary shall require that (in the
  determination of the Secretary) are appropriate for purposes of carrying
  out the program established by this subtitle in an effective and efficient
  manner.
`SEC. 454. IMPLEMENTATION GRANTS.
  `(a) GRANTS- The Secretary is authorized to make implementation grants to
  applicants for the purpose of carrying out Youthbuild programs approved
  under this subtitle.
  `(b) ELIGIBLE ACTIVITIES- Implementation grants may be used to carry out
  Youthbuild programs, including the following activities:
  `(1) Architectural and engineering work.
  `(2) Acquisition, rehabilitation, acquisition and rehabilitation, or
  construction of housing and related facilities to be used for the purposes
  of providing homeownership under subtitle B and subtitle C of this title,
  residential housing for homeless individuals, and low- and very low-income
  families, or transitional housing for persons who are homeless, have
  disabilities, are ill, are deinstitutionalized, or have other special needs.
  `(3) Administrative costs of the applicant, which may not exceed 15 percent
  of the amount of assistance provided under this section, or such higher
  percentage as the Secretary determines is necessary to support capacity
  development by a private nonprofit organization.
  `(4) Education and job training services and activities including--
  `(A) work experience and skills training, coordinated, to the maximum
  extent feasible, with preapprenticeship and apprenticeship programs, in the
  construction and rehabilitation activities described in subsection (b)(2);
  `(B) services and activities designed to meet the educational needs of
  participants, including--
  `(i) basic skills instruction and remedial education;
  `(ii) bilingual education for individuals with limited-English proficiency;
  `(iii) secondary education services and activities designed to lead to
  the attainment of a high school diploma or its equivalent; and
  `(iv) counseling and assistance in attaining post-secondary education and
  required financial aid;
  `(C) counseling services and related activities;
  `(D) activities designed to develop employment and leadership skills,
  including support for youth councils; and
  `(E) support services and need-based stipends necessary to enable individuals
  to participate in the program and, for a period not to exceed 12 months
  after completion of training, to assist participants through support
  services in retaining employment.
  `(5) Wage stipends and benefits provided to participants.
  `(6) Funding of operating expenses and replacement reserves of the property
  covered by the Youthbuild program.
  `(7) Legal fees.
  `(8) Defraying costs for the ongoing training and technical assistance
  needs of the recipient that are related to developing and carrying out
  the Youthbuild program.
  `(c) APPLICATION-
  `(1) FORM AND PROCEDURE- 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) MINIMUM REQUIREMENTS- 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 and its proposed uses;
  `(B) a description of the applicant and a statement of its qualifications,
  including a description of the applicant's past experience with housing
  rehabilitation or construction and with youth and youth education and
  employment training programs, and its relationship with local unions and
  apprenticeship programs, and other community groups;
  `(C) a description of the proposed site for the program;
  `(D) a description of the educational and job training activities, work
  opportunities, and other services that will be provided to participants;
  `(E) a description of the proposed construction or rehabilitation
  activities to be undertaken and the anticipated schedule for carrying out
  such activities;
  `(F) a description of the manner in which eligible youths will be recruited
  and selected, including a description of arrangements which will be made
  with community-based organizations, State and local educational agencies,
  including agencies of Indian tribes, public assistance agencies, the courts
  of jurisdiction for status and youth offenders, shelters for homeless
  individuals and other agencies that serve homeless youth, foster care
  agencies, and other appropriate public and private agencies;
  `(G) a description of the special outreach efforts that will be undertaken to
  recruit eligible young women (including young women with dependent children);
  `(H) a description of how the proposed program will be coordinated with other
  Federal, State, and local activities and activities conducted by Indian
  tribes, including vocational, adult and bilingual education programs, job
  training provided with funds available under the Job Training Partnership Act
  and the Family Support Act of 1988, and housing and community development
  programs, including programs that receive assistance under section 106 of
  the Housing and Community Development Act of 1974;
  `(I) assurances that there will be a sufficient number of adequately
  trained supervisory personnel in the program who have attained the level
  of journeyman or its equivalent;
  `(J) a description of the applicant's relationship with local building
  trade unions regarding their involvement in training, and the relationship
  of the Youthbuild program with established apprenticeship programs;
  `(K) a description of activities that will be undertaken to develop the
  leadership skills of participants;
  `(L) a detailed budget and a description of the system of fiscal controls
  and auditing and accountability procedures that will be used to ensure
  fiscal soundness;
  `(M) a description of the commitments for any additional resources to
  be made available to the program from the applicant, from recipients of
  other Federal, State or local housing and community development assistance
  who will sponsor any part of the construction, rehabilitation, operation
  and maintenance, or other housing and community development activities
  undertaken as part of the program, or from other Federal, State or local
  activities and activities conducted by Indian tribes, including, but not
  limited to, vocational, adult and bilingual education programs, and job
  training provided with funds available under the Job Training Partnership
  Act and the Family Support Act of 1988;
  `(N) identification and description of the financing proposed for any--
  `(i) rehabilitation;
  `(ii) acquisition of the property; or
  `(iii) construction;
  `(O) identification and description of the entity that will operate and
  manage the property;
  `(P) a certification by the public official responsible for submitting
  the comprehensive housing affordability strategy under section 105 of
  the Cranston-Gonzalez National Affordable Housing Act that the proposed
  activities are consistent with the approved housing strategy of the State
  or unit of general local government within which the project is located; and
  `(Q) 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.
  `(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 feasibility of the Youthbuild program;
  `(3) the potential for developing a successful Youthbuild program;
  `(4) the need for the prospective project, as determined by the degree
  of economic distress of the community from which participants would be
  recruited (such as poverty, youth unemployment, number of individuals
  who have dropped out of high school) and of the community in which the
  housing proposed to be constructed or rehabilitated would be located
  (such as incidence of homelessness, shortage of affordable housing, poverty);
  `(5) the apparent commitment of the applicant to leadership development,
  education, and training of participants;
  `(6) the inclusion of previously homeless tenants in the housing provided;
  `(7) the commitment of other resources to the program by the applicant
  and by recipients of other Federal, State or local housing and community
  development assistance who will sponsor any part of the construction,
  rehabilitation, operation and maintenance, or other housing and community
  development activities undertaken as part of the program, or by other
  Federal, State or local activities and activities conducted by Indian
  tribes, including, but not limited to, vocational, adult and bilingual
  education programs, and job training provided with funds available under
  the Job Training Partnership Act and the Family Support Act of 1988; and
  `(8) such other factors as the Secretary determines to be appropriate for
  purposes of carrying out the program established by this subtitle in an
  effective and efficient manner.
  `(e) PRIORITY FOR APPLICANTS WHO OBTAIN HOUSING MONEY FROM OTHER SOURCES- The
  Secretary shall give priority in the award of grants under this section to
  applicants to the extent that they propose to finance activities described
  in paragraphs (1), (2), and (6) of subsection (b) from funds provided
  from Federal, State, local, or private sources other than assistance under
  this subtitle.
  `(f) APPROVAL- The Secretary shall notify each applicant, not later than
  4 months after the date of the submission of the application, whether the
  application is approved or not approved.
  `(g) COMBINED PLANNING AND IMPLEMENTATION GRANT APPLICATION PROCEDURE-
  The Secretary shall develop a procedure under which an applicant may apply
  at the same time and in a single application for a planning grant and an
  implementation grant, with receipt of the implementation grant conditioned
  on successful completion of the activities funded by the planning grant.
`SEC. 455. YOUTHBUILD PROGRAM REQUIREMENTS.
  `(a) RESIDENTIAL RENTAL HOUSING- Each residential rental housing project
  receiving assistance under this subtitle shall meet the following
  requirements:
  `(1) OCCUPANCY BY LOW- AND VERY LOW-INCOME FAMILIES- In the project--
  `(A) at least 90 percent of the units shall be occupied, or available for
  occupancy, by individuals and families with incomes less than 60 percent
  of the area median income, adjusted for family size; and
  `(B) the remaining units shall be occupied, or available for occupancy,
  by low-income families.
  `(2) TENANT PROTECTIONS-
  `(A) LEASE- The lease between a tenant and an owner of residential rental
  housing assisted under this subtitle shall be for not less than 1 year,
  unless otherwise mutually agreed to by the tenant and the owner, and
  shall contain such terms and conditions as the Secretary shall determine
  to be appropriate.
  `(B) TERMINATION OF TENANCY- An owner shall not terminate the tenancy
  or refuse to renew the lease of a tenant of residential rental housing
  assisted under this title except for serious or repeated violation of the
  terms and conditions of the lease, for violation of applicable Federal,
  State, or local law, or for other good cause. Any termination or refusal
  to renew must be preceded by not less than 30 days by the owner's service
  upon the tenant of a written notice specifying the grounds for the action.
  `(C) MAINTENANCE AND REPLACEMENT- The owner of residential rental housing
  assisted under this subtitle shall maintain the premises in compliance
  with all applicable housing quality standards and local code requirements.
  `(D) TENANT SELECTION- The owner of residential rental housing assisted
  under this subtitle shall adopt written tenant selection policies and
  criteria that--
  `(i) are consistent with the purpose of providing housing for very low-income
  and low-income families and individuals;
  `(ii) are reasonably related to program eligibility and the applicant's
  ability to perform the obligations of the lease;
  `(iii) give reasonable consideration to the housing needs of families
  that would qualify for a preference under section 6(c)(4)(A) of the United
  States Housing Act of 1937; and
  `(iv) provide for (I) the selection of tenants from a written waiting list
  in the chronological order of their application, to the extent practicable,
  and (II) for the prompt notification in writing of any rejected applicant
  of the grounds for any rejection.
  `(3) LIMITATION ON RENTAL PAYMENTS- Tenants in each project shall not be
  required to pay rent in excess of the amount provided under section 3(a)
  of the United States Housing Act of 1937.
  `(4) TENANT PARTICIPATION PLAN- For each project owned by a nonprofit
  organization, the organization shall provide a plan for and follow a
  program of tenant participation in management decisions.
  `(5) PROHIBITION AGAINST DISCRIMINATION- A unit in a project assisted under
  this subtitle may not be refused for leasing to a family holding tenant-based
  assistance under section 8 of the United States Housing Act of 1937 because
  of the status of the prospective tenant as a holder of such assistance.
  `(b) TRANSITIONAL HOUSING- Each transitional housing project receiving
  assistance under this subtitle shall adhere to the requirements regarding
  service delivery, housing standards, and rent limitations applicable to
  comparable housing receiving assistance under title IV of the Stewart
  B. McKinney Homeless Assistance Act.
  `(c) LIMITATIONS ON PROFITS FOR RENTAL AND TRANSITIONAL HOUSING-
  `(1) MONTHLY RENTAL LIMITATION- The aggregate monthly rental for each
  eligible project may not exceed the operating costs of the project (including
  debt service, management, adequate reserves, and other operating costs)
  plus a 6 percent return on any equity investment of the project owner.
  `(2) PROFIT LIMITATIONS ON PARTNERS- A nonprofit organization that
  receives assistance under this subtitle for a project shall agree to use
  any profit received from the operation, sale, or other disposition of the
  project for the purpose of providing housing for low- and moderate-income
  families. Profit-motivated partners in a nonprofit partnership may receive--
  `(A) not more than a 6 percent return on their equity investment from
  project operations; and
  `(B) upon disposition of the project, not more than an amount equal to
  their initial equity investment plus a return on that investment equal to
  the increase in the Consumer Price Index for the geographic location of
  the project since the time of the initial investment of such partner in
  the project.
  `(d) HOMEOWNERSHIP- Each homeownership project that receives assistance
  under this subtitle shall comply with the requirements of subtitle B or
  subtitle C of this title.
  `(e) RESTRICTIONS ON CONVEYANCE- The ownership interest in a project that
  receives assistance under this subtitle may not be conveyed unless the
  instrument of conveyance requires a subsequent owner to comply with the
  same restrictions imposed upon the original owner.
  `(f) CONVERSION OF TRANSITIONAL HOUSING- The Secretary may waive the
  requirements of subsection (b) to permit the conversion of a transitional
  housing project to a permanent housing project only if such housing would
  meet the requirements for residential rental housing specified in this
  section.
  `(g) PERIOD OF RESTRICTIONS- A project that receives assistance under
  this subtitle shall comply with the requirements of this section for the
  remaining useful life of the property.
`SEC. 456. ADDITIONAL PROGRAM REQUIREMENTS.
  `(a) ELIGIBLE PARTICIPANTS-
  `(1) IN GENERAL- Except as provided in paragraph (2), an individual may
  participate in a Youthbuild program receiving assistance under this subtitle
  only if such individual is--
  `(A) 16 to 24 years of age, inclusive;
  `(B) a very low-income individual or a member of a very low-income family;
  and
  `(C) an individual who has dropped out of high school.
  `(2) EXCEPTION FOR INDIVIDUALS NOT MEETING INCOME OR EDUCATIONAL NEED
  REQUIREMENTS- Not more than 25 percent of the participants in such program
  may be individuals who do not meet the requirements of either paragraphs
  (1)(B) or (C), but who have educational needs despite attainment of a high
  school diploma or its equivalent.
  `(3) PARTICIPATION LIMITATION- Any eligible individual selected for full-time
  participation in a Youthbuild program may be offered full-time participation
  for a period of not less than 6 months and not more than 24 months.
  `(b) MINIMUM TIME DEVOTED TO EDUCATIONAL SERVICES AND ACTIVITIES- A
  Youthbuild program receiving assistance under this subtitle shall be
  structured so that 50 percent of the time spent by participants in the
  program is devoted to educational services and activities, such as those
  specified in subparagraphs (B) through (F) of section 454(b)(4).
  `(c) AUTHORITY RESTRICTION- No provision of this subtitle may be construed to
  authorize any agency, officer, or employee of the United States to exercise
  any direction, supervision, or control over the curriculum, program of
  instruction, administration, or personnel of any educational institution,
  school, or school system, or over the selection of library resources,
  textbooks, or other printed or published instructional materials by any
  educational institution or school system.
  `(d) STATE AND LOCAL STANDARDS- All educational programs and activities
  supported with funds provided under this subtitle shall be consistent with
  applicable State and local educational standards. Standards and procedures
  with respect to the awarding of academic credit and certifying educational
  attainment in such programs shall be consistent with applicable State and
  local educational standards.
  `(e) WAGES, LABOR STANDARDS, AND NONDISCRIMINATION- To the extent consistent
  with the provisions of this subtitle, sections 142, 143 and 167 of the
  Job Training Partnership Act, relating to wages and benefits, labor
  standards, and nondiscrimination, shall apply to the programs conducted
  under this subtitle as if such programs were conducted under the Job
  Training Partnership Act. This section may not be construed to prevent a
  recipient of a grant under this subtitle from using funds from non-Federal
  sources to increase wages and benefits under such programs, if appropriate.
`SEC. 457. DEFINITIONS.
  `For purposes of this subtitle:
  `(1) ADJUSTED INCOME- The term `adjusted income' has the meaning given
  the term in section 3(b) of the United States Housing Act of 1937.
  `(2) APPLICANT- The term `applicant' means a public or private nonprofit
  agency, including--
  `(A) a community-based organization;
  `(B) an administrative entity designated under section 103(b)(1)(B) of
  the Job Training Partnership Act;
  `(C) a community action agency;
  `(D) a State and local housing development agency;
  `(E) a community development corporation;
  `(F) a State and local youth service and conservation corps; and
  `(G) any other entity eligible to provide education and employment training
  under other Federal employment training programs.
  `(3) COMMUNITY-BASED ORGANIZATION- The term `community-based organization'
  means a private nonprofit organization that--
  `(A) maintains, through significant representation on the organization's
  governing board or otherwise, accountability to low-income community
  residents and, to the extent practicable, low-income beneficiaries of
  programs receiving assistance under this subtitle; and
  `(B) has a history of serving the local community or communities where a
  program receiving assistance under this subtitle is located.
  `(4) HOMELESS INDIVIDUAL- The term `homeless individual' has the meaning
  given the term in section 103 of the Stewart B. McKinney Homeless
  Assistance Act.
  `(5) HOUSING DEVELOPMENT AGENCY- The term `housing development agency'
  means any agency of a State or local government, or any private nonprofit
  organization that is engaged in providing housing for homeless or low-income
  families.
  `(6) INCOME- The term `income' has the meaning given the term in section
  3(b) of the United States Housing Act of 1937.
  `(7) INDIAN TRIBE- The term `Indian tribe' has the same meaning given such
  term in section 102(a)(17) of the Housing and Community Development Act
  of 1974 (42 U.S.C. 5302(a)(17)).
  `(8) INDIVIDUAL WHO HAS DROPPED OUT OF HIGH SCHOOL- The term `individual
  who has dropped out of high school' means an individual who is neither
  attending any school nor subject to a compulsory attendance law and who
  has not received a secondary school diploma or a certificate of equivalency
  for such diploma.
  `(9) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher
  education' has the meaning given the term in section 1201(a) of the Higher
  Education Act of 1965.
  `(10) LIMITED-ENGLISH PROFICIENCY- The term `limited-English proficiency' has
  the meaning given the term in section 7003 of the Bilingual Education Act.
  `(11) LOW-INCOME FAMILY- The term `low-income family' has the meaning
  given the term in section 3(b) of the United States Housing Act of 1937.
  `(12) OFFENDER- The term `offender' means any adult or juvenile with a
  record of arrest or conviction for a criminal offense.
  `(13) QUALIFIED NONPROFIT AGENCY- The term `qualified public or private
  nonprofit agency' means any nonprofit agency that has significant prior
  experience in the operation of projects similar to the Youthbuild program
  authorized under this subtitle and that has the capacity to provide
  effective technical assistance.
  `(14) RELATED FACILITIES- The term `related facilities' includes cafeterias
  or dining halls, community rooms or buildings, appropriate recreation
  facilities, and other essential service facilities.
  `(15) SECRETARY- The term `Secretary' means the Secretary of Housing and
  Urban Development.
  `(16) STATE- The term `State' means any of the several States, the District
  of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the
  Northern Mariana Islands, the Virgin Islands, Guam, American Samoa,
  the Trust Territories of the Pacific Islands, or any other territory or
  possession of the United States.
  `(17) TRANSITIONAL HOUSING- The term `transitional housing' means a
  project that has as its purpose facilitating the movement of homeless
  individuals and families to independent living within a reasonable amount
  of time. Transitional housing includes housing primarily designed to serve
  deinstitutionalized homeless individuals and other homeless individuals
  with mental or physical disabilities and homeless families with children.
  `(18) VERY LOW-INCOME FAMILY- The term `very low-income family' has the
  meaning given the term in section 3(b) of the United States Housing Act
  of 1937.
  `(19) YOUTHBUILD PROGRAM- The term `Youthbuild program' means any program
  that receives assistance under this subtitle and provides disadvantaged
  youth with opportunities for employment, education, leadership development,
  and training in the construction or rehabilitation of housing for homeless
  individuals and members of low- and very low-income families.
`SEC. 458. MANAGEMENT AND TECHNICAL ASSISTANCE.
  `(a) SECRETARY ASSISTANCE- The Secretary may enter into contracts with a
  qualified public or private nonprofit agency to provide assistance to the
  Secretary in the management, supervision, and coordination of Youthbuild
  programs receiving assistance under this subtitle.
  `(b) SPONSOR ASSISTANCE- The Secretary shall enter into contracts with
  a qualified public or private nonprofit agency to provide appropriate
  training, information, and technical assistance to sponsors of programs
  assisted under this subtitle.
  `(c) APPLICATION PREPARATION- Technical assistance may also be provided in
  the development of program proposals and the preparation of applications
  for assistance under this subtitle to eligible entities which intend or
  desire to submit such applications. Community-based organizations shall
  be given first priority in the provision of such assistance.
  `(d) RESERVATION OF FUNDS- In each fiscal year, the Secretary shall reserve
  5 percent of the amounts available for activities under this subtitle
  pursuant to section 402 to carry out subsections (b) and (c) of this section.
`SEC. 459. CONTRACTS.
  `Each Youthbuild program shall carry out the services and activities
  under this subtitle directly or through arrangements or under contracts
  with administrative entities designated under section 103(b)(1)(B) of the
  Job Training Partnership Act, with State and local educational agencies,
  institutions of higher education, State and local housing development
  agencies, or with other public agencies, including agencies of Indian
  tribes,  and private organizations.
`SEC. 460. REGULATIONS.
  `The Secretary shall issue any regulations necessary to carry out this
  subtitle.'.
SEC. 165. EXTENSION FOR COMMENCEMENT OF CERTAIN CONSTRUCTION.
  Notwithstanding section 17(d)(4)(G) of the United States Housing Act of 1937,
  the Secretary of Housing and Urban Development shall extend the deadline for
  commencement of construction until September 30, 1993, for the application
  for assistance under such section 17 for HDG project number IL004HG702,
  and upon commencement of construction shall execute the grant agreement
  for such project as currently approved or amended.
Subtitle E--Homeownership Programs
SEC. 181. HOPE PROGRAMS.
  (a) AUTHORIZATION OF APPROPRIATIONS AND TECHNICAL ASSISTANCE-
  (1) IN GENERAL- Title IV of the Cranston-Gonzalez National Affordable
  Housing Act (42 U.S.C. 12871 et seq.) is amended by inserting after section
  401 the following new section:
`SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
  `(a) FISCAL YEAR 1993- There are authorized to be appropriated for grants
  under this title $855,000,000 for fiscal year 1993, of which--
  `(1) $285,000,000 shall be available for activities authorized under title
  III of the United States Housing Act of 1937, of which up to $4,500,000 of
  any amounts appropriated may be made available for technical assistance
  to potential applicants, applicants and recipients of assistance under
  this title;
  `(2) $285,000,000 shall be available for activities authorized under
  subtitle B, of which up to $3,250,000 of any amounts appropriated may be
  made available for technical assistance to potential applicants, applicants
  and recipients of assistance under this subtitle; and
  `(3) $285,000,000 shall be available for activities under subtitle C, of
  which up to $2,250,000 of any amounts appropriated may be made available
  for technical assistance to potential applicants, applicants and recipients
  of assistance under this subtitle.
Of the amounts appropriated pursuant to this subsection, up to $40,000,000,
but not less than 5 percent, shall be available for activities authorized
under subtitle D. Any amount appropriated pursuant to this subsection shall
remain available until expended.
  `(b) FISCAL YEAR 1994- There are authorized to be appropriated for grants
  under this title $883,641,000 for fiscal year 1994, of which--
  `(1) $294,547,000 shall be available for activities authorized under title
  III of the United States Housing Act of 1937, up to $4,500,000 of which
  may be made available for technical assistance to potential applicants,
  applicants and recipients of assistance under this title;
  `(2) $294,547,000 shall be available for activities authorized under
  subtitle B, up to $3,250,000 of which may be made available for technical
  assistance to potential applicants, applicants and recipients of assistance
  under this subtitle; and
  `(3) $294,547,000 shall be available for activities under subtitle C,
  up to $2,250,000 of which may be made available for technical assistance
  to potential applicants, applicants and recipients of assistance under
  this subtitle.
Of the amounts appropriated pursuant to this subsection, up to $41,680,000,
but not less than 5 percent, shall be available for activities authorized
under subtitle D. Any amount appropriated pursuant to this subsection shall
remain available until expended.
  `(c) TECHNICAL ASSISTANCE- Technical assistance made available under title
  III of the United States Housing Act of 1937 or subtitle B or subtitle
  C of this title may include, but shall not be limited to, training,
  clearinghouse services, the collection, processing and dissemination of
  program information useful for local and national program management, and
  provision of seed money.  Such technical assistance may be made available
  directly, or indirectly under contracts and grants, as appropriate. In
  any fiscal year, no single applicant, potential applicant, or recipient
  under title III of the United States Housing Act of 1937, or subtitle B
  or subtitle C of this title may receive technical assistance in an amount
  exceeding 20 percent of the total amount made available for technical
  assistance under such title or subtitle for the fiscal year.'.
  (2) CONFORMING AMENDMENTS-
  (A) HOPE I- Section 301 of the United States Housing Act of 1937 (42
  U.S.C. 1437aaa(c)) is amended by striking subsection (c).
  (B) HOPE II AND HOPE III- Title IV of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12871 et seq.) is amended--
  (i) by striking subsection (c) of section 421; and
  (ii) in section 441--
  (I) by striking `(a) IN GENERAL- '; and
  (II) by striking subsection (b).
  (3) GAO AUDIT OF TECHNICAL ASSISTANCE CONTRACTS- The Comptroller General of
  the United States shall conduct an audit of all of the technical assistance
  contracts awarded for fiscal years 1993 and 1994 pursuant to section 402
  of the Cranston-Gonzalez National Affordable Housing Act. The Comptroller
  General shall submit a report to the Congress describing the results of
  such audit not later than September 30, 1994.
  (b) HOPE I MATCHING FUNDING- Section 303(c) of the United States Housing
  Act of 1937 (42 U.S.C. 1437aaa-2(c)(1)) is amended--
  (1) in paragraph (1), by inserting after `expenses' the following: `and
  replacement housing'; and
  (2) by inserting at the end the following new paragraph:
  `(3) REDUCTION OF REQUIREMENT- The Secretary shall reduce the matching
  requirement for homeownership programs carried out under this section
  in accordance with the formula established under section 220(d) of the
  Cranston-Gonzalez National Affordable Housing Act.'.
  (c) GRANT SELECTION CRITERIA FOR HOPE I- Section 303(e)(8) of the United
  States Housing Act of 1937 (42 U.S.C. 1437aaa-2(e)(8)) is amended--
  (1) by striking `of the type assisted under this title'; and
  (2) by striking `appreciably'.
  (d) ELIGIBILITY OF MUTUAL HOUSING ASSOCIATIONS FOR HOPE II GRANTS-
  Section 426(1) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12876(1)) is amended by adding at the end the following new
  subparagraph:
  `(G) A mutual housing association.'.
  (e) ELIGIBLE PROPERTY UNDER HOPE II- Section 426(3)(D) of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12876(3)(D))
  is amended by inserting before the period at the end the following `or an
  agency or instrumentality thereof'.
  (f) PREFERENCE FOR ACQUISITION OF VACANT UNITS UNDER HOPE III- Section 444
  of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12894)
  is amended by adding at the end the following new subsection:
  `(f) PREFERENCE FOR ACQUISITION OF VACANT UNITS- Each homeownership program
  under this subtitle shall provide that, in making vacant units in eligible
  properties available for acquisition by eligible families, preference
  shall be given to eligible families who reside in public or Indian housing.'.
  (g) TRANSFER OF SCATTERED SITE PUBLIC AND INDIAN HOUSING TO HOPE PROGRAMS-
  (1) HOPE I-
  (A) IN GENERAL- Sections 303(b)(2) and 304(d) of the United States Housing
  Act of 1937 (42 U.S.C. 1437aaa-2(b)(2) and 42 U.S.C. 1437aaa-3(d)) are
  each amended by striking `(not including scattered site single family
  housing of a public housing agency)'.
  (B) OPERATING SUBSIDIES- Section 303(b)(9) of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 1437aaa-2(b)(9)) is amended by inserting
  before the period at the end the following: `, and except that implementation
  grants may not be used under this paragraph to fund operating expenses
  for scattered site public housing acquired under a homeownership program'.
  (2) HOPE III- Section 446(4) of the Cranston-Gonzalez National Affordable
  Housing Act (42 U.S.C. 12896(4)) is amended by striking `(including scattered
  site single family properties, and' and inserting `(excluding public or
  Indian housing under the United States Housing Act of 1937 and including'.
  (h) ELIGIBILITY OF OTHER FEDERAL PROPERTY FOR HOPE PROGRAMS- Sections
  426(3)(D) and 446(4) of the Cranston-Gonzalez National Affordable Housing
  Act (42 U.S.C. 12876(3)(D) and 42 U.S.C. 12896(4)) are each amended by
  inserting after `Corporation,' the following: `the Federal Deposit Insurance
  Corporation, the Secretary of Defense, the Secretary of Transportation,
  the General Services Administration, any other Federal agency,'.
SEC. 182. NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION.
  (a) EXTENSION OF TRUST- Section 310 of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12859) is amended by striking `on
  September 30, 1993' and inserting `September 30, 1994'.
  (b) AUTHORIZATION OF APPROPRIATIONS- Section 308 of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12857) is amended to read
  as follows:
`SEC. 308. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated for assistance payments under this
  subtitle $520,665,600 for fiscal year 1993 and $542,533,555 for fiscal
  year 1994, of which such sums as may be necessary shall be available in
  each such fiscal year for use under section 303(e). Any amount appropriated
  under this section shall be deposited in the Fund and shall remain available
  until expended, subject to the provisions of section 311.'.
  (c) USE OF TRUST AMOUNTS IN CONNECTION WITH MORTGAGE REVENUE BONDS-
  (1) IN GENERAL- Section 303 of the Cranston-Gonzalez National Affordable
  Housing Act (42 U.S.C. 12852) is amended by adding at the end the following
  new subsection:
  `(e) ASSISTANCE IN CONNECTION WITH HOUSING FINANCED WITH MORTGAGE REVENUE
  BONDS-
  `(1) AUTHORITY- The Trust shall provide assistance for first-time homebuyers
  in the form of interest rate buydowns and downpayment assistance under
  this subsection. Such assistance shall be available only with respect to
  mortgages for the purchase of residences (A) financed with the proceeds
  of a qualified mortgage bond (as such term is defined in section 143 of
  the Internal Revenue Code of 1986), or (B) for which a credit is allowable
  under section 25 of such Code.
  `(2) ELIGIBILITY- To be eligible for assistance under this subsection,
  homebuyers and mortgages shall also meet the requirements under subsection
  (b) of this section, except that--
  `(A) the certification under subsection (b)(3) shall not be required for
  assistance under this subsection;
  `(B) the provisions of subsection (b)(2) shall not apply to assistance
  under this section; and
  `(C) the aggregate income of the homebuyer and the members of the family
  of the homebuyer residing with the homebuyer, for the 12-month period
  preceding the date of the application of the homebuyer for assistance
  under this subsection, shall not exceed 80 percent of the median income
  for a family of 4 persons (as adjusted for family size) in the applicable
  metropolitan statistical area.
  `(3) LIMITATION OF ASSISTANCE- Notwithstanding subsection (a), assistance
  payments for first-time homebuyers under this subsection shall be provided
  in the following manners:
  `(A) INTEREST RATE BUYDOWNS- Assistance payments to decrease the rate
  of interest payable on the mortgages by the homebuyers, in an amount
  not exceeding--
  `(i) in the first year of the mortgage, 2.0 percent of the total principal
  obligation of the mortgage;
  `(ii) in the second year of the mortgage, 1.5 percent of the total principal
  obligation of the mortgage;
  `(iii) in the third year of the mortgage, 1.0 percent of the total principal
  obligation of the mortgage; and
  `(iv) in the fourth year of the mortgage, 0.5 percent of the total principal
  obligation of the mortgage.
  `(B) DOWNPAYMENT ASSISTANCE- Assistance payments to provide amounts for
  downpayments on mortgages by the homebuyers, in an amount not exceeding
  2.5 percent of the principal obligation of the mortgage.
  `(3) AVAILABILITY- The Trust may make assistance payments under subparagraphs
  (A) and (B) of paragraph (3) with respect to a single mortgage of a
  homebuyer.'.
  (2) CONFORMING AMENDMENT- Section 303(a) of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12852(a)) is amended by adding at the
  end the following new paragraph:
  `(3) ASSISTANCE IN CONNECTION WITH MORTGAGE REVENUE BONDS FINANCING-
  Interest rate buydowns and downpayment assistance in the manner provided
  in subsection (e).'.
  (d) ELIGIBILITY OF MANUFACTURED HOME OWNERS- Section 303(b)(1) of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12852(b)(1))
  is amended--
  (1) in subparagraph (B), by striking `or' at the end;
  (2) in subparagraph (C), by striking the period at the end and inserting
  `; or'; and
  (3) by adding at the end the following new subparagraph:
  `(D) meets the requirements of subparagraph (A), (B), or (C), except for
  owning, as a principal residence, a dwelling unit whose structure is--
  `(i) not permanently affixed to a permanent foundation in accordance with
  local or other applicable regulations; or
  `(ii) not in compliance with State, local, or model building codes, or
  other applicable codes, and cannot be brought into compliance with such
  codes for less than the cost of constructing a permanent structure.'.
  (e) SECOND MORTGAGE ASSISTANCE- Section 303(a) of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12852(a)) is amended by adding
  after paragraph (3) (as added by subsection (c)(3) of this section) the
  following new paragraphs:
  `(4) SECOND MORTGAGE ASSISTANCE- Assistance payments to provide loans
  (secured by second mortgages) with deferred payment of interest and
  principal; and
  `(5) CAPITALIZATION OF REVOLVING LOAN FUNDS- Grants to public organizations
  or agencies to establish revolving loan funds to provide homeownership
  assistance to eligible first-time homebuyers consistent with the requirements
  of this subtitle. Such grants shall be matched by an equal amount of local
  investment in such revolving loan funds. Any proceeds or repayments from
  loans made under this paragraph shall be returned to the revolving loan
  fund established under this paragraph to be used for purposes related to
  this section.'.
SEC. 183. NEHEMIAH HOUSING OPPORTUNITY GRANTS.
  (a) HOMEOWNER INCENTIVE- Section 604 of the Housing and Community Development
  Act of 1987 (12 U.S.C. 1715l note) is amended--
  (1) in subsection (b)(4), by inserting before the period the following:
  `, subject to the provisions of subsection (c)'; and
  (2) by adding at the end the following new subsection:
  `(c) HOMEOWNER INCENTIVE- The nonprofit organization may provide that,
  upon the sale or transfer of a property purchased with a loan made under
  this section, any proceeds remaining after repaying the first mortgage
  shall be distributed in the following order:
  `(1) DOWNPAYMENT- The amount of the downpayment made by the seller or
  transferor upon the purchase of the property shall be paid to the seller
  or transferor.
  `(2) LOAN AND PROFIT- Any amounts remaining after distribution under
  paragraph (1) shall be shared equally between the Secretary and the seller
  or transferor, but only to the extent that the Secretary recovers an
  amount equal to the amount of the loan made under this section. If such
  remaining amounts are insufficient for the Secretary to recover the full
  amount of the loan made under this section, the second mortgage held by
  the Secretary under subsection (b)(1) shall be cancelled.
  `(3) PROFIT- Any amounts remaining after distribution under paragraphs
  (1) and (2) shall be paid to the seller or transferor.'.
  (b) CONFORMING AMENDMENTS- Section 606(e)(5) of the Housing and Community
  Development Act of 1987 (12 U.S.C. 1715l note) is amended--
  (1) by inserting `subject to the provisions of section 604(c),' after the
  comma; and
  (2) by striking `(in which case' and all that follows through `repaid)'.
  (c) APPLICABILITY- The amendments made by this section shall apply to any
  loan made under section 604 of the Housing and Community Development Act
  of 1987 after July 1, 1990.
SEC. 184. LOAN GUARANTEES FOR INDIAN HOUSING.
  (a) AUTHORITY- To provide access to sources of private financing to
  Indian families and Indian housing authorities who otherwise could not
  acquire housing financing because of the unique legal status of Indian
  trust land, the Secretary may guarantee not to exceed 100 percent of the
  unpaid principal and interest due on any loan eligible under subsection
  (b) made to an Indian family or Indian housing authority.
  (b) ELIGIBLE LOANS- Loans guaranteed pursuant to this section shall meet
  the following requirements:
  (1) ELIGIBLE BORROWERS- The loans shall be made only to borrowers who are
  Indian families or Indian housing authorities.
  (2) ELIGIBLE HOUSING- The loan shall be used to construct, acquire, or
  rehabilitate 1- to 4-family dwellings that are standard housing and are
  located on trust land or land located in an Indian or Alaska Native area.
  (3) SECURITY- The loan may be secured by any collateral authorized under
  existing Federal law or applicable State or tribal law.
  (4) LENDERS- The loan shall be made only by a lender approved by and meeting
  qualifications established by the Secretary, except that loans otherwise
  insured or guaranteed by an agency of the Federal Government or made by
  an organization of Indians from amounts borrowed from the United States
  shall not be eligible for guarantee under this section. The following
  lenders are deemed to be approved under this paragraph:
  (A) Any mortgagee approved by the Secretary of Housing and Urban Development
  for participation in the single family mortgage insurance program under
  title II of the National Housing Act.
  (B) Any lender whose housing loans under chapter 37 of title 38, United
  States Code are automatically guaranteed pursuant to section 1802(d)
  of such title.
  (C) Any lender approved by the Secretary of Agriculture to make guaranteed
  loans for single family housing under the Housing Act of 1949.
  (D) Any other lender that is supervised, approved, regulated, or insured
  by any agency of the Federal Government.
  (5) TERMS- The loan shall--
  (A) be made for a term not exceeding 30 years;
  (B) bear interest (exclusive of the guarantee fee under section 404
  and service charges, if any) at a rate agreed upon by the borrower and
  the lender and determined by the Secretary to be reasonable, which may
  not exceed the rate generally charged in the area (as determined by the
  Secretary) for home mortgage loans not guaranteed or insured by any agency
  or instrumentality of the Federal Government;
  (C) involve a principal obligation not exceeding--
  (i) an amount equal to the sum of (I) 97 percent of $25,000 of the appraised
  value of the property, as of the date the loan is accepted for guarantee,
  and (II) 95 percent of such value in excess of $25,000; and
  (ii) the amount approved by the Secretary under this section; and
  (D) involve a payment on account of the property (i) in cash or its
  equivalent, or (ii) through the value of any improvements to the property
  made through the skilled or unskilled labor of the borrower, as the
  Secretary shall provide.
  (c) CERTIFICATE OF GUARANTEE-
  (1) APPROVAL PROCESS- Before the Secretary approves any loan for guarantee
  under this section, the lender shall submit the application for the loan
  to the Secretary for examination. If the Secretary approves the loan for
  guarantee, the Secretary shall issue a certificate under this paragraph
  as evidence of the guarantee.
  (2) STANDARD FOR APPROVAL- The Secretary may approve a loan for guarantee
  under this section and issue a certificate under this paragraph only if the
  Secretary determines there is a reasonable prospect of repayment of the loan.
  (3) EFFECT- A certificate of guarantee issued under this paragraph by
  the Secretary shall be conclusive evidence of the eligibility of the
  loan for guarantee under the provisions of this section and the amount of
  such guarantee. Such evidence shall be incontestable in the hands of the
  bearer and the full faith and credit of the United States is pledged to
  the payment of all amounts agreed to be paid by the Secretary as security
  for such obligations.
  (4) FRAUD AND MISREPRESENTATION- This subsection may not be construed to
  preclude the Secretary from establishing defenses against the original
  lender based on fraud or material misrepresentation or to bar the Secretary
  from establishing by regulations in effect on the date of issuance or
  disbursement, whichever is earlier, partial defenses to the amount payable
  on the guarantee.
  (d) GUARANTEE FEE- The Secretary shall fix and collect a guarantee fee
  for the guarantee of loans under this section, which may not exceed the
  amount equal to 1 percent of the principal obligation of the loan. The fee
  shall be paid by the lender at time of issuance of the guarantee and shall
  be adequate, in the determination of the Secretary, to cover expenses and
  probable losses. The Secretary shall deposit any fees collected under this
  subsection in the Indian Housing Loan Guarantee Fund established under
  subsection (i).
  (e) LIABILITY UNDER GUARANTEE- The liability under a guarantee provided
  under this section shall decrease or increase on a pro rata basis according
  to any decrease or increase in the amount of the unpaid obligation under
  the provisions of the loan agreement.
  (f) TRANSFER AND ASSUMPTION- Notwithstanding any other provision of law,
  any loan guaranteed under this section, including the security given
  for the loan, may be sold or assigned by the lender to any financial
  institution subject to examination and supervision by an agency of the
  Federal Government or of any State or the District of Columbia.
  (g) DISQUALIFICATION OF LENDERS AND CIVIL MONEY PENALTIES-
  (1) IN GENERAL- If the Secretary determines that any lender or holder
  of a guarantee certificate under subsection (c) has failed to maintain
  adequate accounting records, to adequately service loans guaranteed under
  this section, to exercise proper credit or underwriting judgment, or has
  engaged in practices otherwise detrimental to the interest of a borrower
  or the United States, the Secretary may--
  (A) refuse, either temporarily or permanently, to guarantee any further
  loans made by such lender or holder;
  (B) bar such lender or holder from acquiring additional loans guaranteed
  under this section; and
  (C) require that such lender or holder assume not less than 10 percent of
  any loss on further loans made or held by the lender or holder that are
  guaranteed under this section.
  (2) CIVIL MONEY PENALTIES FOR INTENTIONAL VIOLATIONS- If the Secretary
  determines that any lender or holder of a guarantee certificate under
  subsection (c) has intentionally failed to maintain adequate accounting
  records, to adequately service loans guaranteed under this section, or to
  exercise proper credit or underwriting judgment, the Secretary may impose
  a civil money penalty on such lender or holder in the manner and amount
  provided under section 536 of the National Housing Act with respect to
  mortgagees and lenders under such Act.
  (3) PAYMENT ON LOANS MADE IN GOOD FAITH- Notwithstanding paragraphs (1)
  and (2), the Secretary may not refuse to pay pursuant to a valid guarantee
  on loans of a lender or holder barred under this subsection if the loans
  were previously made in good faith.
  (h) PAYMENT UNDER GUARANTEE-
  (1) LENDER OPTIONS-
  (A) IN GENERAL- In the event of default by the borrower on a loan guaranteed
  under this section, the holder of the guarantee certificate shall provide
  written notice of the default to the Secretary. Upon providing such notice,
  the holder of the guarantee certificate shall be entitled to payment under
  the guarantee (subject to the provisions of this section) and may proceed
  to obtain payment in one of the following manners:
  (i) FORECLOSURE- The holder of the certificate may initiate foreclosure
  proceedings in a court of competent jurisdiction (after providing written
  notice of such action to the Secretary) and upon a final order by the court
  authorizing foreclosure and submission to the Secretary of a claim for
  payment under the guarantee, the Secretary shall pay to the holder of the
  certificate the pro rata portion of the amount guaranteed (as determined
  pursuant to subsection (e)) plus reasonable fees and expenses as approved
  by the Secretary. The Secretary shall be subrogated to the rights of the
  holder of the guarantee and the lender holder shall assign the obligation
  and security to the Secretary.
  (ii) NO FORECLOSURE- Without seeking a judicial foreclosure (or in any case
  in which a foreclosure proceeding initiated under clause (i) continues for
  a period in excess of 1 year), the holder of the guarantee may submit to
  the Secretary a claim for payment under the guarantee and the Secretary
  shall only pay to such holder for a loss on any single loan an amount
  equal to 90 percent of the pro rata portion of the amount guaranteed
  (as determined under subsection (e)). The Secretary shall be subrogated
  to the rights of the holder of the guarantee and the holder shall assign
  the obligation and security to the Secretary.
  (B) REQUIREMENTS- Before any payment under a guarantee is made under
  subparagraph (A), the holder of the guarantee shall exhaust all reasonable
  possibilities of collection. Upon payment, in whole or in part, to the
  holder, the note or judgment evidencing the debt shall be assigned to
  the United States and the holder shall have no further claim against the
  borrower or the United States. The Secretary shall then take such action
  to collect as the Secretary determines appropriate.
  (2) ASSIGNMENT BY SECRETARY- Notwithstanding paragraph (1), upon receiving
  notice of default on a loan guaranteed under this section from the holder
  of the guarantee, the Secretary may accept assignment of the loan if the
  Secretary determines that the assignment is in the best interests of the
  United States. Upon assignment the Secretary shall pay to the holder of
  the guarantee the pro rata portion of the amount guaranteed (as determined
  under subsection (e)). The Secretary shall be subrogated to the rights
  of the holder of the guarantee and the holder shall assign the obligation
  and security to the Secretary.
  (3) LIMITATIONS ON LIQUIDATION- In the event of a default by the borrower
  on a loan guaranteed under this section involving a security interest in
  tribal allotted or trust land, the Secretary shall only pursue liquidation
  after offering to transfer the account to an eligible tribal member, the
  tribe, or the Indian housing authority serving the tribe or tribes. If the
  Secretary subsequently proceeds to liquidate the account, the Secretary
  shall not sell, transfer, or otherwise dispose of or alienate the property
  except to one of the entities described in the preceding sentence.
  (i) INDIAN HOUSING LOAN GUARANTEE FUND-
  (1) ESTABLISHMENT- There is established in the Treasury of the United States
  the Indian Housing Loan Guarantee Fund for the purpose of providing loan
  guarantees under this section.
  (2) CREDITS- The Guarantee Fund shall be credited with--
  (A) any amounts, claims, notes, mortgages, contracts, and property
  acquired by the Secretary under this section, and any collections and
  proceeds therefrom;
  (B) any amounts appropriated under paragraph (7);
  (C) any guarantee fees collected under subsection (d); and
  (D) any interest or earnings on amounts invested under paragraph (4).
  (3) USE- Amounts in the Guarantee Fund shall be available, to the extent
  provided in appropriation Acts, for--
  (A) fulfilling any obligations of the Secretary with respect to loans
  guaranteed under this section, including the costs (as such term is defined
  in section 502 of the Congressional Budget Act of 1974) of such loans;
  (B) paying taxes, insurance, prior liens, expenses necessary to make
  fiscal adjustment in connection with the application and transmittal of
  collections, and other expenses and advances to protect the Secretary for
  loans which are guaranteed under this section or held by the Secretary;
  (C) acquiring such security property at foreclosure sales or otherwise;
  (D) paying administrative expenses in connection with this section; and
  (E) reasonable and necessary costs of rehabilitation and repair to properties
  that the Secretary holds or owns pursuant to this section.
  (4) INVESTMENT- Any amounts in the Guarantee Fund determined by the
  Secretary to be in excess of amounts currently required to carry out this
  section may be invested in obligations of the United States.
  (5) LIMITATION ON COMMITMENTS TO GUARANTEE LOANS AND MORTGAGES-
  (A) REQUIREMENT OF APPROPRIATIONS- The authority of the Secretary to enter
  into commitments to guarantee loans under this section shall be effective
  for any fiscal year only to the extent or in such amounts as are or have
  been provided in appropriations Acts for such fiscal year.
  (B) LIMITATIONS ON COSTS OF GUARANTEES- The authority of the Secretary
  to enter into commitments to guarantee loans under this section shall
  be effective for any fiscal year only to the extent that amounts in the
  Guarantee Fund are or have been made available in appropriation Acts to
  cover the costs (as such term is defined in section 502 of the Congressional
  Budget Act of 1974) of such loan guarantees for such fiscal year.
  (C) LIMITATION ON OUTSTANDING AGGREGATE PRINCIPAL AMOUNT- Subject to the
  limitations in subparagraphs (A) and (B), the Secretary may enter into
  commitments to guarantee loans under this section in each of fiscal years
  1993 and 1994 with an aggregate outstanding principal amount not exceeding
  such amount as may be provided in appropriation Acts for each such year.
  (6) LIABILITIES- All liabilities and obligations of the assets credited
  to the Guarantee Fund under paragraph (2)(A) shall be liabilities and
  obligations of the Guarantee Fund.
  (7) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to the Guarantee Fund to carry out this section such sums as may be
  necessary for fiscal year 1993 and $50,000,000 for fiscal year 1994.
  (j) REQUIREMENTS FOR STANDARD HOUSING- The Secretary shall, by regulation,
  establish housing safety and quality standards for use under this
  section. Such standards shall provide sufficient flexibility to permit
  the use of various designs and materials in housing acquired with loans
  guaranteed under this section. The standards shall require each dwelling
  unit in any housing so acquired to--
  (1) be decent, safe, sanitary, and modest in size and design;
  (2) conform with applicable general construction standards for the region;
  (3) contain a heating system that--
  (A) has the capacity to maintain a minimum temperature in the dwelling of
  65 degrees Fahrenheit during the coldest weather in the area;
  (B) is safe to operate and maintain;
  (C) delivers a uniform distribution of heat; and
  (D) conforms to any applicable tribal heating code or, if there is no
  applicable tribal code, an appropriate county, State, or National code;
  (4) contain a plumbing system that--
  (A) uses a properly installed system of piping;
  (B) includes a kitchen sink and a partitional bathroom with lavatory,
  toilet, and bath or shower; and
  (C) uses water supply, plumbing, and sewage disposal systems that conform
  to any applicable tribal code or, if there is no applicable tribal code,
  the minimum standards established by the applicable county or State;
  (5) contain an electrical system using wiring and equipment properly
  installed to safely supply electrical energy for adequate lighting and
  for operation of appliances that conforms to any applicable tribal code
  or, if there is no applicable tribal code, an appropriate county, State,
  or National code;
  (6) be not less than--
  (A)(i) 570 square feet in size, if designed for a family of not more than
  4 persons;
  (ii) 850 square feet in size, if designed for a family of not less than
  5 and not more than 7 persons; and
  (iii) 1020 square feet in size, if designed for a family of not less than
  8 persons, or
  (B) the size provided under the applicable locally adopted standards for
  size of dwelling units;
except that the Secretary, upon the request of a tribe or Indian housing
authority, may waive the size requirements under this paragraph; and
  (7) conform with the energy performance requirements for new construction
  established by the Secretary under section 526(a) of the National Housing
  Act.
  (k) DEFINITIONS- For purposes of this section:
  (1) The term `family' means 1 or more persons maintaining a household,
  as the Secretary shall by regulation provide.
  (2) The term `Guarantee Fund' means the Indian Housing Loan Guarantee Fund
  established under subsection (i).
  (3) The term `Indian' means person recognized as being Indian or Alaska
  Native by an Indian tribe, the Federal Government, or any State.
  (4) The term `Indian area' means the area within which an Indian housing
  authority is authorized to provide housing.
  (5) The term `Indian housing authority' means any entity that--
  (A) is authorized to engage in or assist in the development or operation
  of low-income housing for Indians; and
  (B) is established--
  (i) by exercise of the power of self-government of an Indian tribe
  independent of State law; or
  (ii) by operation of State law providing specifically for housing authorities
  for Indians, including regional housing authorities in the State of Alaska.
  (6) The term `Secretary' means the Secretary of Housing and Urban
  Development.
  (7) The term `standard housing' means a dwelling unit or housing that
  complies with the requirements established under subsection (j).
  (8) The term `tribe' means any tribe, band, pueblo, group, community,
  or nation of Indians or Alaska Natives.
  (9) The term `trust land' means land title to which is held by the United
  States for the benefit of an Indian or Indian tribe or title to which
  is held by an Indian tribe subject to a restriction against alienation
  imposed by the United States.
SEC. 185. ASSISTANCE UNDER SECTION 8 FOR HOMEOWNERSHIP.
  (a) AUTHORITY- Section 8 of the United States Housing Act of 1937 (42
  U.S.C. 1437f), is amended by adding at the end the following new subsection:
  `(y) HOMEOWNERSHIP OPTION-
  `(1) USE OF ASSISTANCE FOR HOMEOWNERSHIP- A family receiving tenant-based
  assistance under this section may receive assistance for occupancy of a
  dwelling owned by one or more members of the family if the family--
  `(A) is a first-time homeowner;
  `(B)(i) participates in the family self-sufficiency program under section
  23 of the public housing agency providing the assistance; or
  `(ii) demonstrates that the family has income from employment or other
  sources (other than public assistance), as determined in accordance with
  requirements of the Secretary, that is not less than twice the payment
  standard established by the public housing agency (or such other amount
  as may be established by the Secretary);
  `(C) except as provided by the Secretary, demonstrates at the time the
  family initially receives tenant-based assistance under this subsection
  that one or more adult members of the family have achieved employment for
  the period as the Secretary shall require;
  `(D) participates in a homeownership and housing counseling program provided
  by the agency; and
  `(E) meets any other initial or continuing requirements established by
  the public housing agency in accordance with requirements established by
  the Secretary.
  `(2) MONTHLY ASSISTANCE PAYMENT-
  `(A) IN GENERAL- Notwithstanding any other provisions of this section
  governing determination of the amount of assistance payments under this
  section on behalf of a family, the monthly assistance payment for any family
  assisted under this subsection shall be the amount by which the fair market
  rental for the area established under subsection (c)(1) exceeds 30 percent
  of the family's monthly adjusted income; except that the monthly assistance
  payment shall not exceed the amount by which the monthly homeownership
  expenses, as determined in accordance with requirements established by
  the Secretary, exceeds 10 percent of the family's monthly income.
  `(B) EXCLUSION OF EQUITY FROM INCOME- For purposes of determining the
  monthly assistance payment for a family, the Secretary shall not include
  in family income an amount imputed from the equity of the family in a
  dwelling occupied by the family with assistance under this subsection.
  `(3) RECAPTURE OF CERTAIN AMOUNTS- Upon sale of the dwelling by the family,
  the Secretary shall recapture from any net proceeds the amount of additional
  assistance (as determined in accordance with requirements established by
  the Secretary) paid to or on behalf of the eligible family as a result of
  paragraph (2)(B).
  `(4) DOWNPAYMENT REQUIREMENT- Each public housing agency providing assistance
  under this subsection shall ensure that each family assisted shall provide
  from its own resources not less than 80 percent of any downpayment in
  connection with a loan made for the purchase of a dwelling. Such resources
  may include amounts from any escrow account for the family established
  under section 23(d). Not more than 20 percent of the downpayment may be
  provided from other sources, such as from nonprofit entities and programs
  of States and units of general local government.
  `(5) INELIGIBILITY UNDER OTHER PROGRAMS- A family may not receive assistance
  under this subsection during any period when assistance is being provided
  for the family under other Federal homeownership assistance programs,
  as determined by the Secretary, including assistance under the HOME
  Investment Partnerships Act, the Homeownership and Opportunity Through
  HOPE Act, title II of the Housing and Community Development Act of 1987,
  and section 502 of the Housing Act of 1949.
  `(6) INAPPLICABILITY OF CERTAIN PROVISIONS- Assistance under this subsection
  shall not be subject to the requirements of the following provisions:
  `(A) Subsection (c)(3)(B) of this section.
  `(B) Subsection (d)(1)(B)(i) of this section.
  `(C) Any other provisions of this section governing maximum amounts payable
  to owners and amounts payable by assisted families.
  `(D) Any other provisions of this section concerning contracts between
  public housing agencies and owners.
  `(E) Any other provisions of this Act that are inconsistent with the
  provisions of this subsection.
  `(7) REVERSION TO RENTAL STATUS-
  `(A) FHA-INSURED MORTGAGES- If a family receiving assistance under this
  subsection for occupancy of a dwelling defaults under a mortgage for the
  dwelling insured by the Secretary under the National Housing Act, the
  family may not continue to receive rental assistance under this section
  unless the family (i) transfers to the Secretary marketable title to the
  dwelling, (ii) moves from the dwelling within the period established or
  approved by the Secretary, and (iii) agrees that any amounts the family
  is required to pay to reimburse the escrow account under section 23(d)(3)
  may be deducted by the public housing agency from the assistance payment
  otherwise payable on behalf of the family.
  `(B) OTHER MORTGAGES- If a family receiving assistance under this subsection
  defaults under a mortgage not insured under the National Housing Act, the
  family may not continue to receive rental assistance under this section
  unless it complies with requirements established by the Secretary.
  `(C) ALL MORTGAGES- A family receiving assistance under this subsection that
  defaults under a mortgage may not receive assistance under this subsection
  for occupancy of another dwelling owned by one or more members of the family.
  `(8) DEFINITION OF FIRST-TIME HOMEOWNER- For purposes of this subsection,
  the term `first-time homeowner' means--
  `(A) a family, no member of which has had a present ownership interest in a
  principal residence during the 3 years preceding the date on which the family
  initially receives assistance for homeownership under this subsection; and
  `(B) any other family, as the Secretary may prescribe.'.
  (b) FAMILY SELF-SUFFICIENCY PROGRAM- Section 23(d) of the United States
  Housing Act of 1937 (42 U.S.C. 1437u) is amended by adding at the end the
  following new paragraph:
  `(3) USE OF ESCROW SAVINGS ACCOUNTS FOR SECTION 8 HOMEOWNERSHIP-
  Notwithstanding paragraph (3), a family that uses assistance under section
  8(y) to purchase a dwelling may use up to 50 percent of the amount in
  its escrow account established under paragraph (3) for a downpayment
  on the dwelling. In addition, after the family purchases the dwelling,
  the family may use any amounts remaining in the escrow account to cover
  the costs of major repair and replacement needs of the dwelling. If a
  family defaults in connection with the loan to purchase a dwelling and
  the mortgage is foreclosed, the remaining amounts in the escrow account
  shall be recaptured by the Secretary.'.
  (c) USE OF FHA INSURANCE WITH SECTION 8 HOMEOWNERSHIP-
  (1) IN GENERAL- Section 203 of the National Housing Act (12 U.S.C. 1709)
  is amended--
  (A) in the matter preceding subparagraph (A) in subsection (c)(2), by
  inserting `or of the General Insurance Fund pursuant to subsection (v)'
  after `Fund'; and
  (B) by adding at the end the following new subsection:
  `(v) Notwithstanding section 202 of this title, the insurance of a
  mortgage under this section in connection with the assistance provided
  under section 8(y) of the United States Housing Act of 1937 shall be
  the obligation of the General Insurance Fund created pursuant to section
  519 of this title. The provisions of subsections (a) through (h), (j),
  and (k) of section 204 shall apply to such mortgages, except that (1)
  all references in section 204 to the Mutual Mortgage Insurance Fund or
  the Fund shall be construed to refer to the General Insurance Fund, and
  (2) any excess amounts described in section 204(f)(1) shall be retained
  by the Secretary and credited to the General Insurance Fund.'.
  (2) GENERAL INSURANCE FUND- Section 519(e) of the National Housing Act
  (12 U.S.C. 1735c(e)) is amended by inserting after `203(b)' the following:
  `(except as provided in section 203(v))'.
  (3) MORTGAGE INSURANCE TRANSITION PREMIUMS- The matter preceding paragraph
  (1) in section 2103(b) of the Omnibus Budget Reconciliation Act of 1990
  (12 U.S.C. 1709 note) is amended by inserting `or of the General Insurance
  Fund pursuant to section 203(v) of the National Housing Act' after `Fund'.
  (4) CONFORMING AMENDMENT- The third sentence of section 3(a)(1) of the United
  States Housing Act of 1937 (42 U.S.C. 1437a(a)(1)) is amended by inserting
  `or (y) or paying rent under section 8(c)(3)(B)' after `section 8(o)'.
SEC. 186. ENTERPRISE ZONE HOMEOWNERSHIP OPPORTUNITY GRANTS.
  (a) STATEMENT OF PURPOSE- It is the purpose of this section--
  (1) to encourage homeownership by families in the United States who are
  not otherwise able to afford homeownership;
  (2) to encourage the redevelopment of economically depressed areas; and
  (3) to provide better housing opportunities in federally approved and
  equivalent State-approved enterprise zones.
  (b) DEFINITIONS- For purposes of this section the following definitions
  shall apply:
  (1) HOME- The term `home' means any 1- to 4-family dwelling. Such term
  includes any dwelling unit in a condominium project or cooperative project
  consisting of not more than 4 dwelling units, any town house, and any
  manufactured home.
  (2) METROPOLITAN STATISTICAL AREA- The term `metropolitan statistical
  area' means a metropolitan statistical area as established by the Office
  of Management and Budget.
  (3) NONPROFIT ORGANIZATION- The term `nonprofit organization' means a
  private nonprofit corporation, or other private nonprofit legal entity,
  that is approved by the Secretary as to financial responsibility.
  (4) SECRETARY- The term `Secretary' means the Secretary of Housing and
  Urban Development.
  (5) STATE- 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.
  (6) UNIT OF GENERAL LOCAL GOVERNMENT- The term `unit of general local
  government' means any borough, city, county, parish, town, township,
  village, or other general purpose political subdivision of a State.
  (c) ASSISTANCE TO NONPROFIT ORGANIZATIONS-
  (1) IN GENERAL- The Secretary may provide assistance to nonprofit
  organizations to carry out enterprise zone homeownership opportunity
  programs to promote homeownership in federally approved and equivalent
  State-approved enterprise zones in accordance with the provisions of this
  section. Such assistance shall be made in the form of grants.
  (2) APPLICATIONS- Applications for assistance under this section shall be
  made in such form, and in accordance with such procedures, as the Secretary
  may prescribe.
  (d) ELIGIBLE USES OF ASSISTANCE-
  (1) IN GENERAL- Any nonprofit organization receiving assistance under this
  section shall use such assistance to provide loans to families purchasing
  homes constructed or rehabilitated in accordance with an enterprise zone
  homeownership opportunity program approved under this section.
  (2) SPECIFIC REQUIREMENTS- Each loan made to a family under this subsection
  shall--
  (A) be secured by a second mortgage held by the Secretary on the property
  involved;
  (B) be in an amount not exceeding $15,000;
  (C) bear no interest; and
  (D) be repayable to the Secretary upon the sales, lease, or other transfer
  of such property.
  (e) PROGRAM REQUIREMENTS-
  (1) IN GENERAL- Assistance provided under this section may be used only
  in connection with an enterprise zone homeownership opportunity program
  of construction or rehabilitation of homes.
  (2) FAMILY NEED- Each family purchasing a home under this section shall--
  (A) have a family income on the date of such purchase that is not more
  than the median income for a family of 4 persons (adjusted for family
  size) in the metropolitan statistical area in which a federally approved
  or equivalent State-approved enterprise zone is located; and
  (B) not have owned a home during the 3-year period preceding such purchase.
  (3) DOWNPAYMENT- Each family purchasing a home under this section shall
  make a downpayment of not less than 5 percent of the sale price of such home.
  (4) LEASING PROHIBITION- No family purchasing a home under this section
  may lease such home.
  (f) TERMS AND CONDITIONS OF ASSISTANCE-
  (1) LOCAL CONSULTATION- No proposed enterprise zone homeownership opportunity
  program may be approved by the Secretary under this section unless the
  applicant involved demonstrates to the satisfaction of the Secretary that--
  (A) it has consulted with and received the support of residents of the
  neighborhood in which such program is to be located; and
  (B) it has the approval of each unit of general local government in which
  such program is to be located.
  (2) PROGRAM SCHEDULE- Each applicant for assistance under this section
  shall submit to the Secretary  an estimated schedule for completion of its
  proposed enterprise zone homeownership opportunity program, which schedule
  shall have been agreed to by each unit of general local government in
  which such program is to be located.
  (3) LOCATION- All homes constructed or rehabilitated under such program
  will be located in federally approved or equivalent State-approved
  enterprise zones.
  (4) SALES CONTRACTS- Sales contracts entered into under such program
  will contain provisions requiring repayment of any loan made under this
  section upon the sale or other transfer of the home involved, unless the
  Secretary approves a transfer of such home without repayment (in which
  case the second mortgage held by the Secretary on such home shall remain
  in force until such loan is fully repaid).
  (g) PROGRAM SELECTION CRITERIA-
  (1) IN GENERAL- In selecting enterprise zone homeownership opportunity
  programs for assistance under this section from among eligible programs,
  the Secretary shall make such selection on the basis of the extent to which--
  (A) non-Federal public or private entities will contribute land necessary
  to make each program feasible;
  (B) non-Federal public and private financial or other contributions
  (including tax abatements, waivers of fees related to development, waivers
  of construction, development, or zoning requirements, and direct financial
  contributions) will reduce the cost of home constructed or rehabilitated
  under each program;
  (C) each program will produce the greatest number of units for the least
  amount of assistance provided under this section, taking into consideration
  the cost differences among different market areas; and
  (D) each program provides for the involvement of local residents in the
  planning, and construction or rehabilitation, of homes.
  (2) EXCEPTION- To the extent that non-Federal public entities are prohibited
  by the law of any State from making any form of contribution described in
  subparagraph (A) or (B) of paragraph (1), the Secretary shall not consider
  such form of contribution in evaluating such program.
  (h) REGULATIONS- Not later than 180 days after the date of enactment of
  this section, the Secretary shall issue final regulations to carry out
  the provisions of this title. Any such regulations shall be issued in
  accordance with section 553 of title 5, United States Code, notwithstanding
  the provisions of subsection (a)(2) of such section.
  (i) FUNDING- There are authorized to be appropriated to carry out this
  section $30,000,000 in each of fiscal years 1993 and 1994.
Subtitle F--Implementation
SEC. 191. IMPLEMENTATION.
  The Secretary of Housing and Urban Development shall issue any final
  regulations necessary to implement the provisions of this title and
  the amendments made by this title not later than the expiration of the
  180-day period beginning on the date of the enactment of this Act, except
  as expressly provided otherwise in this title and the amendments made by
  this title. Such regulations shall be issued after notice and opportunity
  for public comment pursuant to the provisions of section 553 of title 5,
  United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3)
  of such section).
TITLE II--HOME INVESTMENT PARTNERSHIPS
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
  Section 205 of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12724) is amended to read as follows:
`SEC. 205. AUTHORIZATION.
  `There are authorized to be appropriated to carry out this title
  $2,086,000,000 for fiscal year 1993, and $2,173,612,000 for fiscal year
  1994, of which--
  `(1) not more than $14,000,000 for fiscal year 1993, and $14,000,000 for
  fiscal year 1994, shall be for community housing partnership activities
  authorized under section 233; and
  `(2) not more than $11,000,000 for fiscal year 1993, and $11,000,000 for
  fiscal year 1994, shall be for activities in support of State and local
  housing strategies authorized under subtitle C.'.
SEC. 202. HOME PROGRAM THRESHOLDS.
  (a) PARTICIPATING JURISDICTIONS- Section 216 of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12746) is amended--
  (1) in paragraph (3), by striking `A jurisdiction' and inserting `Except
  as provided in paragraph (10), a jurisdiction';
  (2) in paragraph (9)(B), by inserting `, except as provided in paragraph
  (10)' after `in any 1 year'; and
  (3) by adding at the end the following:
  `(10) THRESHOLD REDUCTION- If the amount appropriated pursuant to section
  205 for any fiscal year is less than $1,500,000,000, then this section
  shall be applied during that year--
  `(A) by substituting `$500,000' for `$750,000' both places it appears in
  paragraph (3); and
  `(B) by substituting `$500,000', `$410,000', and `$335,000' for `$750,000',
  `$625,000', and `$500,000', respectively, where they appear in paragraph
  (9).'.
  (b) SUPPLEMENTAL ALLOCATION- Section 217(b) of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12747(b)) is amended--
  (1) in paragraph (3), by inserting `, except as provided in paragraph (4)'
  before the period at the end of the second sentence; and
  (2) by adding at the end the following:
  `(4) THRESHOLD REDUCTION- If the amount appropriated pursuant to section
  205 for any fiscal year is less than $1,500,000,000, then this section
  shall be applied during that year by substituting `$335,000' for `$500,000'
  where it appears in paragraph (3).'.
  (c) APPLICABILITY- Notwithstanding any other provision of law, the grant
  thresholds provided for in section 216, as amended by this section,  and
  the grant thresholds provided for in section 217(b) of the Cranston-Gonzalez
  National Affordable Housing Act, as amended by this section, shall apply.
SEC. 203. ELIMINATION OF RESTRICTIONS ON NEW CONSTRUCTION.
  (a) ELIGIBLE USES OF INVESTMENT- Section 212(a) of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12742(a)) is amended--
  (1) in the last sentence of paragraph (2), by striking `under paragraph
  (3) of this subsection or';
  (2) by striking paragraph (3); and
  (3) by redesignating paragraph (4) as paragraph (3).
  (b) FORMULA ALLOCATION- Section 217(b)(1) of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12747(b)(1)) is amended--
  (1) by striking subparagraph (A);
  (2) in subparagraph (D), by striking `Except as provided in subparagraph
  (A), the basic formula established under subparagraph (B)' and inserting
  `The basic formula established under subparagraph (A)';
  (3) in subparagraph (E), by striking `formulas in subparagraph (B)' and
  inserting `formula in subparagraph (A)';
  (4) in subparagraph (F)--
  (A) in the first sentence, by striking `subparagraph (B)' and inserting
  `subparagraph (A)'; and
  (B) by striking the second sentence;
  (5) in subparagraph (G), by striking `formulas in subparagraphs (A) and
  (B)' and inserting `formula in subparagraph (A)'; and
  (6) by redesignating subparagraphs (B) through (G) (as amended by this
  paragraph) as subparagraphs (A) through (F), respectively.
  (c) CONFORMING AMENDMENT- Section 218(g) of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12748(g)) is amended by striking `Except
  as provided in section 217(b)(1)(A)(ii), if' and inserting `If'.
SEC. 204. POLICIES AND PREFERENCE RULES; USE OF TENANT-BASED RENTAL ASSISTANCE
AMOUNTS FOR SECURITY DEPOSITS.
  (a) POLICIES AND PREFERENCE RULES- Section 212(a)(3) of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12742(a)(3)), as so redesignated
  by section 203(a)(3) of this Act, is amended by adding at the end the
  following:
  `(E) SECURITY DEPOSIT ASSISTANCE- A jurisdiction using funds provided under
  this subtitle for tenant-based rental assistance may use such funds to
  provide loans or grants to very low- and low-income families for security
  deposits for rental of dwelling units. Assistance under this subparagraph
  does not preclude assistance under any other provision of this paragraph.'.
  (b) SECURITY DEPOSITS- Section 212(a)(3)(A) of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12742(a)(4)(A)), as so redesignated
  by section 203(a)(3) of this Act, is amended by striking clause (ii)
  and inserting the following:
  `(ii) the tenant-based rental assistance is provided in accordance with
  written tenant selection policies and criteria that are consistent with the
  purposes of providing housing to very low- and low-income families and are
  reasonably related to preference rules established under section 6(c)(4)(A)
  of the Housing Act of 1937.'.
SEC. 205. USE OF HOME FUNDS FOR HOMELESS ASSISTANCE.
  Section 212(a)(1) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12742(a)(1)) is amended by adding at the end the following:
  `For the purpose of this subtitle, the term `affordable housing' includes
  permanent housing for disabled homeless persons, transitional housing,
  and single room occupancy housing.'.
SEC. 206. PER UNIT COST LIMITS.
  Section 212(d)(1) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12742(d)(1)) is amended by inserting after the first sentence the
  following: `For multifamily housing, such limits shall not be less than the
  per unit dollar amount limitations set forth in section 221(d)(3)(ii) of the
  National Housing Act, as such limitations may be adjusted in accordance
  therewith, except that for purposes of this subsection the Secretary
  shall, by regulation, increase the per unit dollar amount limitations in
  any geographical area by an amount, not to exceed 140 percent, that equals
  the amount by which the costs of multifamily housing construction in the
  area exceed the national average of such costs.'.
SEC. 207. ADMINISTRATIVE COSTS AS ELIGIBLE USE OF INVESTMENT.
  (a) HOUSING USES- Section 212(a)(1) of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12742(a)(1)) is amended by inserting after
  `organizations,' the following: `to provide for the payment of reasonable
  administrative and planning costs, to provide for the payment of operating
  expenses of community housing development organizations,'.
  (b) ELIGIBLE USE- Section 212 of the Cranston-Gonzalez National Affordable
  Housing Act (42 U.S.C. 12742) is amended--
  (1) in subsection (c)(1), by inserting `that exceed the amount specified
  under subsection (c)' before the comma at the end;
  (2) by redesignating subsections (c), (d) (as amended by the preceding
  provisions of this Act), and (e) as subsections (d), (e), and (f),
  respectively; and
  (3) by inserting after subsection (b) the following:
  `(c) ADMINISTRATIVE COSTS- In each fiscal year, each participating
  jurisdiction may use not more than 10 percent of the funds made available
  under this subtitle to the jurisdiction for such year for any administrative
  and planning costs of the jurisdiction in carrying out this subtitle,
  including the costs of the salaries of persons engaged in administering and
  managing activities assisted with funds made available under this subtitle.'.
  (c) RECOGNITION OF MATCH- Section 220 of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12750) is amended--
  (1) in subsection (b)(2), by striking `shall' and all that follows and
  inserting `may not be recognized for purposes of subsection (a).'; and
  (2) in subsection (c)--
  (A) by striking paragraph (2); and
  (B) by redesignating paragraphs (3), (4), and (5) as paragraphs (2),
  (3), and (4), respectively.
  (d) LIMITATION ON ADMINISTRATIVE COSTS- Section 212 of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12742) is amended by adding at
  the end the following:
  `(g) LIMITATION ON OPERATING ASSISTANCE- A participating jurisdiction may not
  use more than 5 percent of its allocation under this subtitle for the payment
  of operating expenses for community housing development organizations.'.
SEC. 208. AFFORDABLE HOUSING.
  (a) RENT CALCULATIONS- Section 215(a) of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12745(a)) is amended--
  (1) in paragraph (1)(A) by striking `smaller and larger families' and
  inserting `number of bedrooms in the unit';
  (2) in paragraph (3), by adding at the end the following: `The preceding
  sentence shall not apply with respect to funds made available under this
  Act for units that have been allocated a low-income housing tax credit
  by a housing credit agency pursuant to section 42 of the Internal Revenue
  Code 1986.'; and
  (3) in the second sentence of paragraph (3), by striking `not less than'
  and inserting `the lesser of the amount payable by the tenant under State
  or local law or'.
  (b) EXCEPTION TO TERMINATION RULE- Section 215(a)(1)(E) of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(a)(1)(E))
  is amended by inserting after `Act' the following: `, except upon a
  foreclosure by a lender (or upon other transfer in lieu of foreclosure)
  if such action (i) recognizes any contractual or legal rights of public
  agencies, nonprofit sponsors, or others to take actions that would avoid
  termination of low-income affordability in the case of foreclosure or
  transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding
  low income affordability restrictions, as determined by the Secretary'.
SEC. 209. HOMEOWNERSHIP RESALE RESTRICTIONS.
  Section 215(b) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12745(b)) is amended by striking paragraph (4) and inserting
  the following:
  `(4) is subject to resale restrictions that are established by
  the participating jurisdiction and determined by the Secretary to be
  appropriate to--
  `(A) allow for subsequent purchase of the property only by persons who meet
  the qualifications specified under paragraph (2), at a price which will--
  `(i) provide the owner with a fair return on investment, including any
  improvements, and
  `(ii) ensure that the housing will remain affordable to a reasonable range
  of low-income homebuyers; or
  `(B) recapture the investment provided under this title in order to assist
  other persons in accordance with the requirements of this subsection,
  except where there are no net proceeds or where the net proceeds are
  insufficient to repay the full amount of the assistance; and'.
SEC. 210. MATCHING REQUIREMENTS.
  (a) TIERED CONTRIBUTION- Section 220(a) of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12750(a)) is amended--
  (1) in paragraph (1)--
  (A) by striking `and' and inserting a comma;
  (B) by inserting `and substantial rehabilitation' after `rehabilitation'; and
  (C) by inserting `and' after the semicolon;
  (2) in paragraph (2)--
  (A) by striking `33' and inserting `30'; and
  (B) by striking `substantial rehabilitation; and' and inserting `new
  construction.';
  (3) by striking paragraph (3); and
  (4) in the matter preceding paragraph (1), by striking `affordable housing
  assisted under this title' and inserting `housing that qualifies as
  affordable housing under this title'.
  (b) FORM- Section 220(c) of the Cranston-Gonzalez National Affordable
  Housing Act (42 U.S.C. 12750(c)) is amended--
  (1) by striking `and' at the end of paragraph (4);
  (2) by striking the period at the end of paragraph (5) and inserting a
  semicolon; and
  (3) by adding at the end the following:
  `(6) up to--
  `(A) 50 percent of proceeds from bond financing validly issued by a State or
  local government, agency or instrumentality thereof, or political subdivision
  thereof, and repayable with revenues derived from a multifamily affordable
  housing project financed, and
  `(B) 25 percent of proceeds from bond financing validly issued by a State or
  local government, agency or instrumentality thereof, or political subdivision
  thereof, and repayable with revenues derived from a single-family project
  financed,
but not more than 25 percent of the contribution required under subsection
(a) may be derived from these sources;
  `(7) the reasonable value of any site-preparation and construction materials
  and any donated or voluntary labor in connection with the site-preparation
  for, or construction or rehabilitation of, affordable housing; and
  `(8) such other contributions to affordable housing as the Secretary
  considers appropriate.'.
  (c) REDUCTION OF REQUIREMENT- Section 220 of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12750) is amended by striking subsection
  (d) and inserting:
  `(d) REDUCTION OF REQUIREMENT-
  `(1) IN GENERAL- The Secretary shall reduce the matching requirement under
  subsection (a) with respect to any funds drawn from a jurisdiction's HOME
  Investment Trust Fund Account during a fiscal year by--
  `(A) 50 percent for a jurisdiction that certifies that it is in fiscal
  distress; and
  `(B) 100 percent for a jurisdiction that certifies that it is in severe
  fiscal distress.
  `(2) DEFINITIONS- For purposes of this section--
  `(A) `fiscal distress' means a jurisdiction other than a State that
  satisfies 1 of the distress criteria set forth in paragraph (3); and
  `(B) `severe fiscal distress' means a jurisdiction other than a State that
  satisfies both of the distress criteria set forth in paragraph (3).
  `(3) DISTRESS CRITERIA- For purposes of a jurisdiction other than a State
  certifying that it is distressed, the following criteria shall apply:
  `(A) POVERTY RATE- The average poverty rate in the jurisdiction for the
  calendar year immediately preceding the year in which its fiscal year begins
  was equal to or greater than 125 percent of the average national poverty
  rate during such calendar year (as determined according to information of
  the Bureau of the Census).
  `(B) PER CAPITA INCOME- The average per capita income in the jurisdiction
  for the calendar year immediately preceding the year in which its fiscal
  year begins was less than 75 percent of the average national per capita
  income during such calendar year (as determined according to information
  of the Bureau of the Census).
  `(4) STATES- In determining the degree to which a jurisdiction that is
  a State is distressed, the Secretary shall take into consideration the
  State's fiscal capacity and expenditure needs as determined by a national
  organization which compiles the relevant data.
  `(5) WAIVER IN DISASTER AREAS- If a participating jurisdiction is located
  in an area in which a declaration of a disaster pursuant to the Robert
  T. Stafford Disaster Relief and Emergency Assistance Act is in effect for
  any part of a fiscal year, the Secretary may reduce the matching requirement
  for that fiscal year under subsection (a) with respect to any funds drawn
  from a jurisdiction's HOME Investment Trust Fund Account during that fiscal
  year by up to 100 percent.'.
  (d) APPLICABILITY- The amendments made by this section shall apply with
  respect to fiscal year 1993 and each fiscal year thereafter.
SEC. 211. ASSISTANCE FOR INSULAR AREAS.
  (a) REPEAL OF AMENDMENTS MADE BY PUBLIC LAW 102-230-
  (1) DEFINITIONS- Section 104 of the Cranston-Gonzalez National Affordable
  Housing Act (42 U.S.C. 12704) is amended to read as if the amendments made
  by section 2 of Public Law 102-230 (105 Stat. 1720) had not been enacted.
  (2) ALLOCATION OF RESOURCES- Section 217(a) of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12747(a)) is amended--
  (A) by striking the first sentence of paragraph (1) and inserting the
  following: `After reserving amounts under paragraph (2) for Indian tribes
  and after reserving amounts under paragraph (3) for the insular areas,
  the Secretary shall allocate funds approved in an appropriation Act to
  carry out this title by formula as provided in subsection (b).';
  (B) by striking paragraph (3) (as added by Public Law 102-229; 105
  Stat. 1709);
  (C) by striking paragraph (3) (as added by Public Law 102-230; 105
  Stat. 1720); and
  (D) by adding after paragraph (2) the following:
  `(3) INSULAR AREAS- For each fiscal year, of any amounts approved in
  appropriation Acts to carry out this title, the Secretary shall reserve
  for grants to the insular areas the greater of (A) $750,000, or (B) 0.2
  percent of the amounts appropriated under such Acts. The Secretary shall
  provide for the distribution of amounts reserved under this paragraph among
  the insular areas pursuant to specific criteria for such distribution,
  which shall be contained in a regulation issued by the Secretary.'.
  (3) EXPEDITED ISSUANCE OF REGULATION- The regulation referred to in the
  amendment made by paragraph (2)(D) shall take effect not later than the
  expiration of the 90-day period beginning on the date of the enactment
  of this Act. The regulation shall not be subject to the requirements of
  subsections (b) and (c) of section 553 of title 5, United States Code,
  or section 7(o) of the Department of Housing and Urban Development Act.
  (b) EFFECTIVE DATE- The amendments made by subsection (a) shall apply with
  respect to fiscal year 1993 and thereafter.
SEC. 212. COMMUNITY HOUSING PRODUCTION SET-ASIDE.
  (a) EXTENSION OF PERIOD- Section 231 of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12771) is amended by striking `18 months'
  each place it appears in subsections (a) and (b) and inserting `24 months'.
  (b) ALLOCATION FOR USE BY NONPROFIT ORGANIZATION- Section 231(a) of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12771(a))
  is amended by inserting after the second sentence the following:
  `If during the first 24 months of its participation under this title,
  a participating jurisdiction is unable to identify a sufficient number
  of capable community housing development organizations, then up to 20
  percent of the funds allocated to that jurisdiction under this section,
  but not to exceed $150,000, may be made available to carry out activities
  that develop the capacity of community housing development organizations
  in that jurisdiction.'.
  (c) OTHER REQUIREMENTS- Section 234(b) of the Cranston- Gonzalez National
  Affordable Housing Act (42 U.S.C. 12774(b)) is amended--
  (1) by striking `, together with other Federal assistance,'; and
  (2) by inserting before the period the following:  `or $50,000 annually,
  whichever is greater'.
SEC. 213. HOUSING EDUCATION AND ORGANIZATIONAL SUPPORT FOR COMMUNITY LAND
TRUSTS.
  (a) COMMUNITY LAND TRUSTS- Section 233 of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12773) is amended--
  (1) in subsection (a)(2), by inserting `, including community land trusts,'
  after `organizations';
  (2) in subsection (b), by adding at the end the following:
  `(6) COMMUNITY LAND TRUSTS- Organizational support, technical assistance,
  education, training, and continuing support under this subsection may
  be made available to community land trusts (as such term is defined in
  subsection (f)) and to community groups for the establishment of community
  land trusts.'; and
  (3) by adding at the end the following:
  `(f) DEFINITION OF COMMUNITY LAND TRUST- For purposes of this section,
  the term `community land trust' means a community housing development
  organization (except that the requirements under subparagraphs (C) and
  (D) of section 104(6) shall not apply for purposes of this subsection)--
  `(1) that is not sponsored by a for-profit organization;
  `(2) that is established to carry out the activities under paragraph (3);
  `(3) that--
  `(A) acquires parcels of land, held in perpetuity, primarily for conveyance
  under long-term ground leases;
  `(B) transfers ownership of any structural improvements located on such
  leased parcels to the lessees; and
  `(C) retains a preemptive option to purchase any such structural improvement
  at a price determined by formula that is designed to ensure that the
  improvement remains affordable to low- and moderate-income families in
  perpetuity;
  `(4) whose corporate membership that is open to any adult resident of a
  particular geographic area specified in the bylaws of the organization; and
  `(5) whose board of directors--
  `(A) includes a majority of members who are elected by the corporate
  membership; and
  `(B) is composed of equal numbers of (i) lessees pursuant to paragraph
  (3)(B), (ii) corporate members who are not lessees, and (iii) any other
  category of persons described in the bylaws of the organization.'.
  (b) WOMEN IN HOMEBUILDING- Section 233 of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12773), as amended by subsection (a)
  of this section, is further amended--
  (1) in subsection (a)--
  (A) in paragraph (1), by striking `and' at the end;
  (B) in paragraph (2), by striking the period at the end and inserting `;
  and'; and
  (C) by adding at the end the following:
  `(3) to achieve the purposes under paragraphs (1) and (2) by helping
  women who reside in low- and moderate-income neighborhoods rehabilitate
  and construct housing in the neighborhoods.'.
  (2) in subsection (b), by adding after paragraph (6) (as added by subsection
  (a)(2) of this section) the following:
  `(7) FACILITATING WOMEN IN HOMEBUILDING PROFESSIONS- Technical assistance
  may be made available to businesses, unions, and organizations involved in
  construction and rehabilitation of housing in low- and moderate-income
  areas to assist women residing in the area to obtain jobs involving
  such activities, which may include facilitating access by such women
  to, and providing, apprenticeship and other training programs regarding
  nontraditional skills, recruiting women to participate in such programs,
  providing continuing support for women at job sites, counseling and
  educating businesses regarding suitable work environments for women,
  providing information to such women regarding opportunities for establishing
  small housing construction and rehabilitation businesses, and providing
  materials and tools for training such women (in an amount not exceeding
  10 percent of any assistance provided under this paragraph). The Secretary
  shall give priority under this paragraph to providing technical assistance
  for organizations rehabilitating single family or multifamily housing owned
  or controlled by the Secretary pursuant to title II of the National Housing
  Act and which have women members in occupations in which women constitute
  25 percent or less of the total number of workers in the occupation (in
  this section referred to as `nontraditional occupations').';
  (3) in subsection (c)(1)--
  (A) in subparagraph (C), by striking `and' at the end;
  (B) in subparagraph (D), by striking `or' at the end and inserting `and'; and
  (C) by adding at the end the following:
  `(E) in the case of activities under subsection (b)(7), is a community-based
  organization (as such term is defined in section 4 of the Job Training
  Partnership Act) or public housing agency, which has demonstrated
  experience in preparing women for apprenticeship training in construction
  or administering programs for training women for construction or other
  nontraditional occupations (and such organizations may use assistance for
  activities under such subsection to employ women in housing construction
  and rehabilitation activities to the extent that the organization has the
  capacity to conduct such activities); or'; and
  (4) by adding at the end of subsection (e) the following: `The Secretary
  shall provide assistance under this section, to the extent applications
  are submitted and approved, to contractors in each of the geographic
  regions having a regional office of the Department of Housing and Urban
  Development.'.
SEC. 214. LAND BANK REDEVELOPMENT.
  (a) PRIORITIES FOR CAPACITY DEVELOPMENT- Section 242 of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12782) is amended--
  (1) in paragraph (4), by striking `and' at the end;
  (2) in paragraph (5), by striking the period at the end and inserting `;
  and'; and
  (3) by adding at the end the following:
  `(6) facilitate the establishment and efficient operation of land bank
  programs, under which title to vacant and abandoned parcels of real estate
  located in or causing blighted neighborhoods is cleared for use consistent
  with the purposes of this title.'.
SEC. 215. RESEARCH IN PROVIDING AFFORDABLE HOUSING THROUGH INNOVATIVE BUILDING
TECHNIQUES AND TECHNOLOGY.
  The second sentence of section 244 of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 12784) is amended by inserting before
  the period at the end the following: `, through the use of cost-saving
  innovative building technology and construction techniques'.
SEC. 216. USE OF INNOVATIVE BUILDING TECHNOLOGIES TO PROVIDE COST-SAVING
HOUSING OPPORTUNITIES.
  Subtitle D of title II of the Cranston-Gonzalez National Affordable Housing
  Act (42 U.S.C. 12801 et seq.) is amended by adding at the end the following:
`SEC. 260. COST-SAVING BUILDING TECHNOLOGIES AND CONSTRUCTION TECHNIQUES.
  `(a) IN GENERAL- The Secretary shall make available a model program to
  utilize cost-saving building technologies and construction techniques
  for purposes of providing homeownership and rental opportunities under
  this title.
  `(b) SELECTION CRITERIA- The Secretary shall establish criteria for
  participating jurisdictions to select projects for assistance under the
  model program which may include--
  `(1) the extent to which innovative, cost-saving building and construction
  technologies are utilized;
  `(2) the extent to which innovative, cost-saving construction techniques
  are utilized;
  `(3) the extent to which units will be made available to low-income families
  and individuals;
  `(4) the extent to which non-Federal public or private assistance is
  utilized; and
  `(5) any other factor, determined by the Secretary to be appropriate.
  `(c) GUIDELINES- The Secretary shall publish guidelines for the model
  program under this section not later than 180 days after the date of the
  enactment of the Housing and Community Development Act of 1992.
  `(d) REPORT- The Secretary shall submit a biennial report to the Congress
  on the utilization of the model program under this section.'.
SEC. 217. DEFINITION OF COMMUNITY HOUSING DEVELOPMENT ORGANIZATION.
  (a) IN GENERAL- Section 104(6) of the Cranston-Gonzalez National Affordable
  Housing Act (42 U.S.C. 12704(6)) is amended by adding at the end the
  following new flush material:
`In the case of an organization serving more than one county, the Secretary
may not require that such organization, to be considered a community housing
development organization for purposes of this Act, include as members on
the organization's governing board low-income persons residing in each
county served.'.
  (b) TRANSITION RULE- For the purposes of determining compliance with the
  requirements of section 104(6) of the Cranston-Gonzalez National Affordable
  Housing Act, the Secretary of Housing and Urban Development may provide
  an exception for organizations that meet the definition of community
  housing development organization, except for significant representation of
  low-income community residents on the board, if such organization fulfills
  such requirement within 6 months of receiving funds under title II of such
  Act or September 30, 1993, whichever is sooner.
SEC. 218. INCLUSION OF ECHO HOUSING IN DEFINITION OF HOUSING.
  Section 104(8) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12704(8)) is amended by inserting before the period at the end
  the following: `and elder cottage housing opportunity units that are small,
  free-standing, barrier-free, energy-efficient, removable, and designed to
  be installed adjacent to existing 1- to 4-family dwellings'.
SEC. 219. ELIGIBILITY OF MANUFACTURED HOME OWNERS AS FIRST-TIME HOMEBUYERS.
  Section 104(14) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12704(14)) is amended--
  (1) in subparagraph (A), by striking `and' at the end;
  (2) in subparagraph (B), by striking the period at the end and inserting
  `; and'; and
  (3) by adding at the end the following new subparagraph:
  `(C) an individual shall not be excluded from consideration as a first-time
  homebuyer under this paragraph on the basis that the individual owns or
  owned, as a principal residence during such 3-year period, a dwelling unit
  whose structure is--
  `(i) not permanently affixed to a permanent foundation in accordance with
  local or other applicable regulations, or
  `(ii) not in compliance with State, local, or model building codes, or
  other applicable codes, and cannot be brought into compliance with such
  codes for less than the cost of constructing a permanent structure.'.
SEC. 220. ELIGIBILITY FOR ASSISTANCE AND CONTENTS OF STRATEGIES.
  (a) HOMELESSNESS INFORMATION- Section 105(b)(2) of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12705(b)(2)) is amended--
  (1) by inserting `, including rural homelessness,' after `homelessness'
  the first place it appears; and
  (2) by inserting `including tabular representation of such information,'
  after `with homelessness,'.
  (b) ANTIDISPLACEMENT PLAN AND ANTIPOVERTY STRATEGY- Section 105(b) of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12705(b))
  is amended--
  (1) by striking paragraph (14) and inserting the following:
  `(14) include a certification that the jurisdiction has in effect and is
  following a residential antidisplacement and relocation assistance plan
  that, in any case of any such displacement in connection with any activity
  assisted with amounts provided under title II, requires the same actions
  and provides the same rights as required and provided under a residential
  antidisplacement and relocation assistance plan under section 104(d) of the
  Housing and Community Development Act of 1974 in the event of displacement
  in connection with a development project assisted under section 106 or
  119 of such Act;'.
  (2) in paragraph (15), by striking the period at the end and inserting `;
  and' and
  (3) by adding at the end the following:
  `(16) for any housing strategy submitted for fiscal year 1994 or any
  fiscal year thereafter and taking into consideration factors over which
  the jurisdiction has control, describe the jurisdiction's goals, programs,
  and policies for reducing the number of households with incomes below
  the poverty line (as defined by the Office of Management and Budget and
  revised annually), and, in consultation with other appropriate public and
  private agencies, state how the jurisdiction's goals, programs, and policies
  for producing and preserving affordable housing set forth in the housing
  strategy will be coordinated with other programs and services for which
  the jurisdiction is responsible and the extent to which they will reduce
  (or assist in reducing) the number of households with incomes below the
  poverty line; and'.
  (c) LINKAGE BETWEEN HOUSING NEED AND ALLOCATION OF HOUSING RESOURCES-
  Section 105(b) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12705(b)) is amended--
  (1) by redesignating paragraphs (8) through (16) as paragraphs (9) through
  (17), respectively; and
  (2) by inserting after paragraph (7) the following:
  `(8) describe how the jurisdiction's plan will address the housing needs
  identified pursuant to subparagraphs (1) and (2), describe the reasons
  for allocation priorities, and identify any obstacles to addressing
  underserved needs;'.
SEC. 221. LOCATION OF ACTIVITIES.
  Section 218(a) of the Cranston-Gonzalez National Affordable Housing Act (42
  U.S.C. 12748a) is amended by inserting after `boundaries' the following:
  `or within the boundaries of contiguous jurisdictions in joint projects
  which serve residents from both jurisdictions'.
SEC. 222. REGULATIONS.
  The Secretary of Housing and Urban Development shall issue any final
  regulations necessary to implement the provisions of this title and
  the amendments made by this title not later than the expiration of the
  180-day period beginning on the date of the enactment of this Act, except
  as expressly provided otherwise in this title and the amendments made by
  this title. Such regulations shall be issued after notice and opportunity
  for public comment pursuant to the provisions of section 553 of title 5,
  United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3)
  of such section).
SEC. 223. RETROACTIVE APPLICATION OF HOME AMENDMENTS.
  The amendments made by this title shall apply to unexpended funds allocated
  under title II of the Cranston-Gonzalez National Affordable Housing Act
  in fiscal year 1992, except as otherwise specifically provided.
TITLE III--PRESERVATION OF LOW-INCOME HOUSING
Subtitle A--Prepayment of Mortgages Insured Under National Housing Act
SEC. 301. AUTHORIZATION OF APPROPRIATIONS.
  Section 234 of the Housing and Community Development Act of 1987 (12
  U.S.C. 4124) is amended to read as follows:
`SEC. 234. AUTHORIZATION OF APPROPRIATIONS.
  `(a) IN GENERAL- There are authorized to be appropriated for assistance
  and incentives authorized under this subtitle $638,252,784 for fiscal year
  1993 and $665,059,401 for fiscal year 1994.
  `(b) GRANTS- Subject to approval in appropriation Acts, not more than
  $50,000,000 of the amounts made available under subsection (a) for fiscal
  year 1993, and not more than  $50,000,000 of the amounts made available
  under subsection (a) for fiscal year 1994, shall be available for grants
  under section 221(d)(2).'.
SEC. 302. GUIDELINES FOR APPRAISALS OF PRESERVATION VALUE.
  The first sentence of section 213(c) of the Housing and Community Development
  Act of 1987 (12 U.S.C. 4103(c)) is amended by inserting before `and costs'
  the following: `simultaneous termination of any Federal rental assistance,'.
SEC. 303. SECOND NOTICE OF INTENT.
  Section 216(d) of the Housing and Community Development Act of 1987 (12
  U.S.C. 4106(d)) is amended by adding at the end the following new paragraph:
  `(3) FILING WITH THE STATE OR LOCAL GOVERNMENT, TENANTS, AND MORTGAGEE-
  Upon filing a second notice of intent under this subsection, the owner
  shall simultaneously file such notice of the intent with the chief
  executive officer of the appropriate State or local government for the
  jurisdiction within which the housing is located and with the mortgagee,
  and shall inform the tenants of the housing of the filing.'.
SEC. 304. PLAN OF ACTION.
  (a) SUPPORTING DOCUMENTATION REGARDING PLAN OF ACTION- Section 217(a)(2) of
  the Housing and Community Development Act of 1987 (12 U.S.C. 4107(a)(2)) is
  amended by inserting after the second sentence the following new sentence:
  `Each owner and the Secretary shall also, upon request, make available
  to the tenants of the housing and to the office of the chief executive
  officer of the appropriate State or local government for the jurisdiction
  within which the housing is located all documentation supporting the plan
  of action, but not including any information that the Secretary determines
  is proprietary information.'.
  (b) SUPPORTING DOCUMENTATION REGARDING REVISIONS- Section 217(c) of the
  Housing and Community Development Act of 1987 (12 U.S.C. 4107(c)) is amended
  in the second sentence by inserting before the period the following: `and
  make available to the Secretary and tenants all documentation supporting any
  revision, but not including any information that the Secretary determines
  is proprietary information'.
SEC. 305. APPROVAL OF PLAN OF ACTION.
  Section 218 of the Housing and Community Development Act of 1987 (12
  U.S.C. 4108) is amended--
  (1) by redesignating subsection (b) as subsection (c); and
  (2) by inserting after subsection (a) the following new subsection:
  `(b) STANDARDS AND PROCEDURE FOR WRITTEN FINDINGS-
  `(1) STANDARDS- A written finding under subsection (a) shall be based on
  an analysis of the evidence considered by the Secretary in reaching such
  finding and shall contain documentation of such evidence.
  `(2) PROCEDURE AND CRITERIA- The Secretary shall, by regulation, develop (A)
  a procedure for determining whether the conditions under paragraphs (1) and
  (2) of subsection (a) exist, (B) requirements for evidence on which such
  determinations are based, and (C) criteria on which such determinations
  are based.'.
SEC. 306. RECEIPT OF INCENTIVES TO EXTEND LOW-INCOME USE.
  Section 219(a) of the Housing and Community Development Act of 1987 (12
  U.S.C. 4109(a)) is amended--
  (1) in the first sentence, by inserting after `receive' the following:
  `(for each year after the approval of the plan of action)'; and
  (2) by adding at the end the following new sentence: `The Secretary shall
  take such actions as are necessary to ensure that owners receive the
  annual authorized return for the housing determined under section 214(a)
  during the period in which rent increases are phased in as provided in
  section 222(a)(2)(E), including (in order of preference) (1) allowing the
  owner access to residual receipt accounts (pursuant to subsection (b)(1)
  of this section), (2) deferring remittance of excess rent payments, and (3)
  providing an increase in rents permitted under an existing contract under
  section 8 of the United States Housing Act of 1937 (pursuant to subsection
  (b)(2) of this section).'.
SEC. 307. TRANSFER TO QUALIFIED PURCHASERS.
  (a) ELIGIBILITY FOR ASSISTANCE- The matter preceding subparagraph (A) in
  section 220(d)(2) of the Housing and Community Development Act of 1987 (12
  U.S.C. 4110(d)(2)) is amended by inserting after `purchasers' the following:
  `(including all priority purchasers other than resident councils acquiring
  under the homeownership program authorized by section 226)'.
  (b) PROJECT OVERSIGHT- Section 220(d)(2)(D) of the Housing and Community
  Development Act of 1987 (12 U.S.C. 4110(d)(2)(D)) is amended by inserting
  before the semicolon the following: `, and in the case of a priority
  purchaser, meet project oversight costs'.
  (c) RETURN- Section 220(d)(2)(E) of the Housing and Community Development
  Act of 1987 (12 U.S.C. 4110(d)(2)(E)) is amended to read as follows:
  `(E) receive a distribution equal to an 8 percent annual return on any
  actual cash investment (from sources other than assistance provided under
  this title) made to acquire or rehabilitate the project;'.
  (d) REIMBURSEMENT- Section 220(d)(2)(F) of the Housing and Community
  Development Act of 1987 (12 U.S.C. 4110(d)(2)(F)) is amended to read
  as follows:
  `(F) in the case of a priority purchaser, receive a reimbursement of all
  reasonable transaction expenses associated with the acquisition, loan
  closing, and implementation of an approved plan of action; and'.
  (e) INCENTIVES- Section 220(d)(3)(A) of the Housing and Community Development
  Act of 1987 (12 U.S.C. 4110(d)(3)(A)) is amended by striking `any residual
  receipts' and all that follows through `(b) or (c) and'.
SEC. 308. CRITERIA FOR PLAN OF ACTION INVOLVING INCENTIVES.
  (a) ELIMINATION OF WINDFALL PROFITS TEST- Section 222 of the Housing and
  Community Development Act of 1987 (12 U.S.C. 4112) is amended by striking
  subsection (e).
  (b) RENT ADJUSTMENTS- Section 222(a)(2)(G)(i) of the Housing and Community
  Development Act of 1987 (12 U.S.C. 4112(a)(2)(G)(i)) is amended by striking
  `by making changes in the annual authorized return under section 214'
  and inserting the following: `, where the owner is a priority purchaser,
  to the portion of rent attributable to project oversight costs'.
SEC. 309. RESIDENT HOMEOWNERSHIP PROGRAM.
  Section 226(b) of the Housing and Community Development Act of 1987 (12
  U.S.C. 4116(b)) is amended--
  (1) in paragraph (2)--
  (A) by inserting `AND LIMITATION ON CONDITIONS OF APPROVAL' before the
  period at the end of the paragraph heading; and
  (B) by inserting after the period at the end the following new sentence:
  `The Secretary may not require the prepayment of the mortgage on eligible
  low-income housing for the approval of a plan of action involving a
  homeownership program for the housing.';
  (2) in paragraph (3)--
  (A) in subparagraph (C), by striking `and' at the end;
  (B) in subparagraph (D), by striking the period at the end and inserting
  `; and'; and
  (C) by adding at the end the following new subparagraph:
  `(E) the low-income affordability restrictions shall continue to apply
  to any rental units in the housing for any period during which such units
  remain rental units.';
  (3) in paragraph (8), by striking `Resident' and inserting `Except in the
  case of limited equity cooperatives, resident'; and
  (4) in paragraph (10)--
  (A) by striking `, as determined by the Secretary,';
  (B) by striking `section 222(d)' and inserting `section 222(c)'; and
  (C) by striking the last sentence.
SEC. 310. DEFINITION OF ELIGIBLE LOW-INCOME HOUSING.
  Section 229(1)(A)(i) of the Housing and Community Development Act of 1987
  (12 U.S.C. 4119(1)(A)(i)) is amended by striking `assisted under section
  101 of the Housing and Urban Development Act of 1965 or section 8 of the
  United States Housing Act of 1937' and inserting `receiving loan management
  assistance under section 8 of the United States Housing Act of 1937 due
  to a conversion from section 101 of the Housing and Urban Development Act
  of 1965'.
SEC. 311. PREEMPTION OF STATE AND LOCAL LAWS.
  The first sentence of section 232(b) of the Housing and Community Development
  Act of 1987 (12 U.S.C. 4122(b)) is amended by striking `and' the first
  place it appears and inserting `, such as any law or regulation'.
SEC. 312. TECHNICAL ASSISTANCE AND CAPACITY BUILDING.
  Title II of the Housing and Community Development Act of 1987 (42 U.S.C. 4101
  et seq.) is amended by adding at the end the following new subtitle:
`Subtitle C--Technical Assistance and Capacity Building
`SEC. 251. AUTHORITY.
  `The Secretary of Housing and Urban Development may provide technical
  assistance and capacity building to further the preservation program
  established under this title.
`SEC. 252. PURPOSES.
  `The purposes of this subtitle are--
  `(1) to promote the ability of residents of eligible low-income housing
  to meaningfully participate in the preservation process established by
  this title and affect decisions about the future of their housing;
  `(2) to promote the ability of community-based nonprofit housing developers
  and resident councils to acquire, rehabilitate, and competently own and
  manage eligible housing as rental or cooperative housing for low- and
  moderate-income people; and
  `(3) to assist the Secretary in discharging the obligation under section 220
  to notify potential qualified purchasers of the availability of properties
  for sale and to otherwise facilitate the coordination and oversight of
  the preservation program established under this title.
`SEC. 253. GRANTS FOR BUILDING RESIDENT CAPACITY AND FUNDING PREDEVELOPMENT
COSTS.
  `(a) IN GENERAL- Assistance made available under this section shall be used
  for direct assistance grants to resident organizations and community-based
  nonprofit housing developers and resident councils to assist the acquisition
  of specific projects (including the payment of reasonable administrative
  expenses to participating intermediaries).
  `(b) ALLOCATION- 30 percent of the assistance made available under this
  section shall be used for resident capacity grants in accordance with
  subsection (d). The remainder shall be used for predevelopment grants in
  connection with specific projects in accordance with subsection (e).
  `(c) LIMITATION ON GRANT AMOUNTS- A resident capacity grant under subsection
  (d) may not exceed $30,000 per project and a grant under subsection (e)
  for predevelopment costs may not exceed $200,000 per project, exclusive
  of any fees paid to a participating intermediary by the Secretary for
  administering the program.
  `(d) RESIDENT CAPACITY GRANTS-
  `(1) USE- Resident capacity grants under this subsection shall be available
  to eligible applicants to cover expenses for resident outreach, incorporation
  of a resident organization or council, conducting democratic elections,
  training, leadership development, legal and other technical assistance
  to the board of directors, staff and members of the resident organization
  or council.
  `(2) ELIGIBLE HOUSING- Grants under this subsection may be provided with
  respect to eligible low-income housing for which the owner has filed a notice
  of intent under subtitle B of this title or title II of the Emergency Low
  Income Housing Preservation Act of 1987 (pursuant to section 604 of the
  Cranston-Gonzalez National Affordable Housing Act).
  `(e) PREDEVELOPMENT GRANTS-
  `(1) USE- Predevelopment grants under this subsection shall be made
  available to community-based nonprofit housing developers and resident
  councils to cover the cost of organizing a purchasing entity and pursuing
  an acquisition, including third party costs for training, development
  consulting, legal, appraisal, accounting, environmental, architectural
  and engineering, application fees, and sponsor's staff and overhead costs.
  `(2) ELIGIBLE HOUSING- Such grants may only be made available with respect
  to any eligible low-income housing project for which the owner has filed an
  initial notice of intent to transfer the housing to a qualified purchaser
  in accordance with section 220 of this title, or has filed a notice of
  intent and entered into a binding agreement to sell the housing to a
  resident organization or nonprofit organization.
  `(3) PHASE-IN OF GRANT PAYMENTS- Grant payments under this subsection
  shall be made in phases, based on performance benchmarks established by the
  Secretary in consultation with intermediaries selected under section 255(b).
  `(f) GRANT APPLICATIONS- Grant applications for assistance under subsections
  (d) and (e) shall be received monthly on a rolling basis and approved or
  rejected on at least a quarterly basis by intermediaries selected under
  section 255(b).
  `(g) APPEAL- If an application for assistance under subsections (d) or (e)
  is denied, the applicant shall have the right to appeal the denial to the
  Secretary and receive a binding determination within 30 days of the appeal.
`SEC. 254. GRANTS FOR OTHER PURPOSES.
  `The Secretary may provide grants under this subtitle--
  `(1) to resident-controlled or community-based nonprofit organizations
  with experience in resident education and organizing for the purpose of
  conducting community, city or county wide outreach and training programs
  to identify and organize residents of eligible low-income housing; and
  `(2) to State and local government agencies and nonprofit intermediaries
  for the purpose of carrying out such activities as the Secretary deems
  appropriate to further the preservation program established under this title.
`SEC. 255. DELIVERY OF ASSISTANCE THROUGH INTERMEDIARIES.
  `(a) IN GENERAL- The Secretary shall approve and disburse assistance under
  section 253 through eligible intermediaries selected by the Secretary
  under subsection (b). If the Secretary does not receive an acceptable
  proposal from an intermediary offering to administer assistance under this
  section in a given State, the Secretary shall administer the program in
  such State directly.
  `(b) SELECTION OF ELIGIBLE INTERMEDIARIES-
  `(1) IN GENERAL- The Secretary shall develop criteria to select eligible
  intermediaries, through a competitive process, to administer assistance
  under this subtitle. The process shall include provision for a reasonable
  administrative fee.
  `(2) PRIORITY- With respect to all forms of grants available under section
  253, such criteria shall give priority to applications from eligible
  intermediaries with demonstrated expertise or experience with the program
  established under this title or under the Emergency Low Income Housing
  Preservation Act of 1987.
  `(3) CRITERIA- The criteria developed under this subsection shall--
  `(A) not assign any preference or priority to applications from eligible
  intermediaries based on their previous participation in administering or
  receiving Federal grants or loans (but may exclude applicants who have
  failed to perform under prior contracts of a similar nature);
  `(B) require an applicant to prepare a proposal that demonstrates adequate
  staffing, qualifications, prior experience, and a plan for participation; and
  `(C) permit an applicant to serve as the administrator of assistance made
  available under section 253(d) or (e), based on the applicant's suitability
  and interest.
  `(4) GEOGRAPHIC COVERAGE- The Secretary may select more than 1 State
  or regional intermediary for a single State or region.  The number of
  intermediaries chosen for each State or region may be based on the number
  of eligible low-income housing projects in the State or region, provided
  there is no duplication of geographic coverage by intermediaries in the
  administration of the direct assistance grant program.
  `(5) NATIONAL NONPROFIT INTERMEDIARIES- National nonprofit intermediaries
  shall be selected to administer the assistance made available under section
  253 only with respect to States or regions for which no other eligible
  intermediary, acceptable to the Secretary, has submitted a proposal to
  participate.
  `(6) PREFERENCE- With respect to assistance made available under section
  254, preference shall be given to eligible regional, State, and local
  intermediaries, over national nonprofit organizations.
  `(c) CONFLICTS OF INTEREST- Eligible intermediaries selected under subsection
  (b) to disburse assistance under section 253 shall certify that they
  will serve only as delegated program administrators, charged with the
  responsibility for reviewing and approving grant applications on behalf
  of the Secretary. Selected intermediaries shall--
  `(1) establish appropriate procedures for grant administration and fiscal
  management, pursuant to standards established by the Secretary; and
  `(2) receive a reasonable administrative fee, except that they may not
  provide other services to grant recipients with respect to projects that
  are the subject of the grant application and may not receive payment,
  directly or indirectly, from the proceeds of grants they have approved.
  `(d) DEFINITION OF ELIGIBLE INTERMEDIARIES- For purposes of this section,
  the term `eligible intermediary' means a State, regional, or national
  organization (including a quasi-public organization) or a State or local
  housing agency that--
  `(1) has as a central purpose the preservation of existing affordable
  housing and the prevention of displacement;
  `(2) does not receive direct Federal appropriations for operating support;
  `(3) in the case of a national nonprofit organization, has been in
  existence for at least 5 years prior to the date of application and has
  been classified by the Internal Revenue Service as an exempt organization
  under section 501(c)(3) of the Internal Revenue Code of 1986;
  `(4) in the case of a regional or State nonprofit organization, has been
  in existence for at least 3 years prior to the date of application and has
  been classified by the Internal Revenue Service as an exempt organization
  under section 501(c)(3) of the Internal Revenue Code of 1986 or is otherwise
  a tax-exempt entity;
  `(5) has a record of service to low-income individuals or community-based
  nonprofit housing developers in multiple communities and, with respect to
  intermediaries administering assistance under section 253, has experience
  with the allocation or administration of grant or loan funds; and
  `(6) meets standards of fiscal responsibility established by the Secretary.
`SEC. 256. DEFINITIONS.
  `For purposes of this subtitle--
  `(1) the term `community-based nonprofit housing developer' means a
  nonprofit community development corporation that--
  `(A) has been classified by the Internal Revenue Service as an exempt
  organization under section 501(c)(3) of the Internal Revenue Code of 1986;
  `(B) has been in existence for at least 2 years prior to the date of the
  grant application;
  `(C) has a record of service to low- and moderate-income people in the
  community in which the project is located;
  `(D) is organized at the neighborhood, city, county or multi-county
  level; and
  `(E) in the case of a corporation acquiring eligible housing under subtitle
  B of this title, agrees to form a purchaser entity that conforms to the
  definition of a community-based nonprofit organization under such subtitle
  and agrees to use its best efforts to secure majority tenant consent to
  the acquisition of the project for which grant assistance is requested; and
  `(2) the terms `eligible low-income housing', `nonprofit organization',
  `owner', and `resident council' have the meanings given such terms in
  section 229.
`SEC. 257. FUNDING.
  `The Secretary shall use not more than $25,000,000 of the amounts made
  available under section 234(a) for fiscal year 1993, and not more than
  $25,000,000 of the amounts made available under section 234(a) for fiscal
  year 1994, to carry out this subtitle. Of any amounts made available to
  carry out this subtitle in any appropriation Act, 90 percent shall be set
  aside for use in accordance with section 253 and 10 percent shall be set
  aside for use in accordance with subsection 254.'.
SEC. 313. TRANSITION PROVISIONS.
  (a) EFFECT OF ELECTION- Section 604(a) of the Cranston-Gonzalez National
  Affordable Housing Act (12 U.S.C. 4101 note) is amended by adding at the
  end the following sentence: `An owner that elects to be subject to the
  provisions of the Emergency Low Income Housing Preservation Act of 1987
  shall comply with section 212(b), section 217(a)(2), and section 217(c) of
  the Low-Income Housing Preservation and Resident Homeownership Act of 1990.'.
  (b) CHANGES TO PROVISIONS OF 1987 ACT- Section 604(c) of the
  Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 4101 note)
  is amended by adding at the end the following new sentence: `With respect
  to housing for which such an election is made--
  `(1) in making incentives under section 224 of such Act available to such
  housing, the Secretary--
  `(A) shall, for approvable plans of action, provide assistance sufficient
  to enable a nonprofit organization that has purchased or will purchase an
  eligible low income housing project to meet project oversight costs; and
  `(B) may not refuse to offer incentives referred to in such section to any
  owner who filed a notice of intent under section 222 of such Act before
  October 15, 1991, based solely on the date of filing of the plan of action
  for the housing; and
  `(2) the provisions of section 233(1)(A)(i) of such Act shall not apply,
  and the term `eligible low income housing' shall, for purposes of such Act,
  shall include housing financed by a loan or mortgage that is insured or
  held by the Secretary or a State or State agency under section 221(d)(3)
  of the National Housing Act and receiving loan management assistance under
  section 8 of the United States Housing Act of 1937 due to a conversion
  from section 101 of the Housing and Urban Development Act of 1965.'.
SEC. 314. CONDITIONS OF ASSISTANCE.
  (a) ELIHPA OF 1987- The Secretary may not require, as a condition of
  eligibility for or receipt of technical assistance made available under
  the Departments of Veterans Affairs and Housing and Urban Development,
  and Independent Agencies Appropriations Act, 1992 (Public Law 102-139)
  (including any phase of a grant), that an applicant participate in a
  training program sponsored or conducted by the Department of Housing and
  Urban Development for acquisition of eligible low income housing under the
  provisions of the Emergency Low Income Housing Preservation Act of 1987,
  and may not provide any preference or priority for such assistance for
  any applicant based on participation in such a program.
  (b) LIHPRHA OF 1990- The Secretary may require, as a condition of
  eligibility for or receipt of technical assistance made available under
  the Departments of Veterans Affairs and Housing and Urban Development,
  and Independent Agencies Appropriations Act, 1992 (Public Law 102-139)
  (including any phase of a grant), that an applicant participate in a
  training program sponsored or conducted by the Department of Housing and
  Urban Development for acquisition of eligible low-income housing under
  this title, and may provide preference or priority for such assistance
  for applicants based on participation in such a program, but only if the
  program is made available on a nationwide basis not later than March 1, 1993.
SEC. 315. DELEGATED RESPONSIBILITY TO STATE AGENCIES.
  The Secretary of Housing and Urban Development shall issue interim
  regulations implementing section 227 of the Housing and Community Development
  Act of 1987 (as amended by section 601(a) of the Cranston-Gonzalez National
  Affordable Housing Act) not later than the expiration of the 30-day period
  beginning on the date of the enactment of this Act, which shall take effect
  upon issuance. The Secretary shall issue final regulations implementing such
  section 227 after notice and opportunity for public comment regarding the
  interim regulations, pursuant to the provisions of section 553 of title 5,
  United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3)
  of such section). The duration of the period for public comment shall not
  be less than 60 days, and the final regulations shall be issued not later
  than the expiration of the 60-day period beginning upon the conclusion of
  the comment period and shall take effect upon issuance.
SEC. 316. INSURANCE FOR SECOND MORTGAGE FINANCING.
  (a) TERMS- Section 241(f) of the National Housing Act (12 U.S.C. 1715z-6(f))
  is amended--
  (1) in paragraph (2)(B)(i), by inserting after `equal to' the following:
  `the amount of rehabilitation costs required by the plan of action and
  related charges and';
  (2) in paragraph (3)(B), by inserting after `1990' the following: `and the
  amount of rehabilitation costs required by the plan of action and related
  charges and';
  (3) in paragraph (5)--
  (A) by redesignating subparagraph (B) as subparagraph (C); and
  (B) by striking subparagraph (A) and inserting the following new
  subparagraphs:
  `(A)(i) in the case of equity loans, have a term not to exceed 40 years
  and amortization provisions which will, to the extent practicable, support
  the loan amount authorized under paragraph (2)(B); and
  `(ii) in the case of acquisition loans, have a term of not less than 40
  years; and
  `(B) bear interest at such rate as may be agreed upon by the mortgagor and
  mortgagee and be secured in such manner as the Secretary may require; and';
  (4) by striking paragraph (6); and
  (5) by redesignating paragraphs (7) through (9) as paragraphs (6) through
  (8), respectively.
  (b) RENEGOTIATION- Section 241(f) of the National Housing Act (12
  U.S.C. 17z-6(f)) is amended by adding at the end the following new paragraph:
  `(10) The Secretary shall renegotiate and modify the terms of an equity
  loan insured under this subsection, at the request of the owner of the
  project for which the loan is made, if--
  `(1) the loan was made during the period beginning 30 days before the date
  of the enactment of the Housing and Community Development Act of 1992 and
  ending 90 days after such date of enactment under this subsection; and
  `(2) the loan was made pursuant to a plan of action under the provisions
  of the Emergency Low Income Housing Preservation Act of 1987 and accepted
  by the Secretary for processing in December 1991.'.
  (c) REGULATIONS- Not later than the expiration of the 45-day period
  beginning on the date of the enactment of this Act, the Secretary shall
  issue regulations implementing section 241(f)(1) of the National Housing
  Act. The regulations shall not be subject to the requirements of subsections
  (b) and (c) of section 553 of title 5, United States Code.
SEC. 317. TECHNICAL AMENDMENTS.
  (a) LOW-INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIP ACT OF
  1990- The Housing and Community Development Act of 1987 (12 U.S.C. 4101
  et seq.) is amended--
  (1) in section 215(a)(2), by inserting `Housing' after `United States';
  (2) in section 216(b)(4), by striking `exceeds' and inserting `exceed';
  (3) in the second sentence of section 221(c), by striking `that' and
  inserting `than';
  (4) in section 222--
  (A) in subsection (a)(2)(A), by striking `low income' and inserting
  `low-income';
  (B) in subsection (c)(2), by striking `an hearing' and inserting `a hearing';
  (C) in subsection (d)(2)(B), by inserting `the' after `that'; and
  (D) in subsection (d)(2)(C)(ii), by inserting `in' before `default';
  (5) in section 229(11)(A), by striking `resident' and inserting `residents';
  and
  (6) in section 231(b), by striking `section 222(d)' and inserting `section
  222(c)'.
  (b) CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT- Section 613(b)(2) of
  the Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 4125(b)(2))
  is amended by striking `section 224(e)' and inserting `section 222(d)'.
  (c) NATIONAL HOUSING ACT- Section 241(f) of the National Housing Act
  (12 U.S.C. 1715z-6(f)) is amended--
  (1) in paragraph (2)(B)(ii), by striking `and' at the end; and
  (2) in paragraph (7), by striking `acquisiton loan' and inserting
  `acquisition loan'.
SEC. 318. STUDY OF PROJECTS ASSISTED UNDER FLEXIBLE SUBSIDY PROGRAM.
  (a) STUDY- The Secretary shall conduct a study of housing projects that (1)
  are assisted under section 236 of the National Housing Act or the proviso
  of section 221(d)(5) of such Act, and (2) have received or are receiving
  assistance under section 201 of the Housing and Community Development
  Amendments of 1978, to determine the cost of providing such projects
  with incentives under the Low-Income Housing Preservation and Resident
  Homeownership Act of 1990. The study shall examine any projects portions
  of which assisted under such section 236 that are assisted primarily by
  State agencies.
  (b) REPORT- The Secretary shall submit a report to the Congress regarding
  any findings and conclusions of the study under subsection (a) not later
  than the expiration of the 1-year period beginning on the date of the
  enactment of this Act.
Subtitle B--Other Preservation Provisions
SEC. 331. ELIGIBILITY OF PUBLIC MORTGAGORS FOR SECTION 236 MORTGAGE INSURANCE.
  Section 236(j)(4)(A) of the National Housing Act (12 U.S.C. 1715z-1(j)(4)(A))
  is amended by striking `private'.
SEC. 332. REGULATIONS.
  Except as otherwise provided in this title, the Secretary of Housing and
  Urban Development shall issue interim regulations implementing this title
  and the amendments made by this title not later than the expiration of
  the 90-day period beginning on the date of the enactment of this Act,
  which shall take effect upon issuance. The Secretary shall issue final
  regulations implementing this title and the amendments made by this title
  after notice and opportunity for public comment regarding the interim
  regulations, pursuant to the provisions of section 553 of title 5, United
  States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of
  such section). The duration of the period for public comment shall not
  be less than 60 days, and the final regulations shall be issued not later
  than the expiration of the 60-day period beginning upon the conclusion of
  the comment period and shall take effect upon issuance.
TITLE IV--MULTIFAMILY HOUSING PLANNING AND INVESTMENT STRATEGIES
SEC. 401. DEFINITIONS.
  For purposes of this title:
  (1) COVERED MULTIFAMILY HOUSING PROPERTY- The term `covered multifamily
  housing property' means any housing--
  (A) that is--
  (i) reserved for occupancy by very low-income elderly persons pursuant to
  section 202(d)(1) of the Housing Act of 1959;
  (ii) assisted under the provisions of section 202 of the Housing Act of 1959
  (as such section existed before the effectiveness of the amendment made
  by section 801(a) of the Cranston-Gonzalez National Affordable Housing Act);
  (iii) financed by a loan or mortgage insured, assisted, or held by the
  Secretary or a State or State agency under section 236 of the National
  Housing Act; or
  (iv) financed by a loan or mortgage insured or held by the Secretary
  pursuant to section 221(d)(3) of the National Housing Act; and
  (B) that is not eligible for assistance under--
  (i) the Low-Income Housing Preservation and Resident Homeownership Act
  of 1990;
  (ii) the provisions of the Emergency Low Income Housing Preservation Act
  of 1987 (as in effect immediately before the date of the enactment of the
  Cranston-Gonzalez National Affordable Housing Act); or
  (iii) the HOME Investment Partnerships Act.
  (2) COVERED MULTIFAMILY HOUSING PROPERTY FOR THE ELDERLY- The term `covered
  multifamily housing property for the elderly' means any multifamily
  housing project that was designed or designated to serve, or is serving,
  elderly persons or families and is assisted under a program administered
  by the Secretary.
  (3) SECRETARY- The term `Secretary' means the Secretary of Housing and
  Urban Development.
SEC. 402. REQUIRED SUBMISSION.
  (a) IN GENERAL- The owner of each covered multifamily housing property,
  and the owner of each covered multifamily housing property for the
  elderly, shall submit to the Secretary of Housing and Urban Development
  a comprehensive needs assessment of the property under this title.
  (b) TIMING- The Secretary shall require the owners of approximately one-third
  of the aggregate number of covered multifamily housing properties, and
  the owners of approximately one-third of the aggregate number of covered
  multifamily housing properties for the elderly, to submit the comprehensive
  needs assessments under this section for the properties in each of fiscal
  years 1993, 1994, and 1995, in a manner designed to ensure that upon the
  conclusion of fiscal year 1995 the assessments for all such properties
  have been submitted.
SEC. 403. CONTENTS.
  (a) IN GENERAL- Each comprehensive needs assessment submitted under this
  title for a covered multifamily housing property or a covered multifamily
  housing property for the elderly shall contain the following information
  with respect to the property:
  (1) A description of any financial or other assistance currently needed
  for the property to ensure that the property is maintained in a livable
  condition and to ensure the financial viability of the project.
  (2) A description of any financial or other assistance for the property
  that, at the time of the assessment, is reasonably foreseeable as necessary
  to ensure that the property is maintained in a livable condition and to
  ensure the financial viability of the project, during the remaining useful
  life of the property.
  (3) A description of any resources available for meeting the current and
  future needs of the property described under paragraphs (1) and (2) and
  the likelihood of obtaining such resources.
  (4) A description of any assistance needed for the property under programs
  administered by the Secretary.
  (b) PROJECTS FOR THE ELDERLY- Each comprehensive needs assessment for a
  covered multifamily housing property for the elderly shall include, in
  addition to the information required under subsection (a), the following
  information with respect to the property:
  (1) A description of the supportive service needs of such residents and
  any supportive services provided to elderly residents of the property.
  (2) A description of any modernization needs and activities for the property.
  (3) A description of any personnel needs for the property.
SEC. 404. SUBMISSION AND REVIEW.
  (a) FORM- The Secretary shall establish the form and manner of submission
  of the comprehensive needs assessments under this title.
  (b) RESIDENT REVIEW- The Secretary shall require each owner of a covered
  multifamily housing property and each owner of a covered multifamily
  housing property for the elderly to make available to the residents of
  the property the comprehensive needs assessment that is to be submitted
  to the Secretary. The Secretary shall require each owner to provide for
  such residents to submit comments and opinions regarding the assessment
  to the owner before the submission of the assessment.
  (c) STATE HOUSING FINANCE AGENCY REVIEW- To the extent that a covered
  multifamily housing property or a covered multifamily housing property for
  the elderly is financed or assisted by a State housing finance agency (as
  such term is defined in section 802 of the Housing and Community Development
  Act of 1974), the Secretary shall require the owner of the property to
  submit the comprehensive needs assessment for the property to the State
  housing finance agency upon submitting the assessment to the Secretary.
  (d) REVIEW- The Secretary shall review each comprehensive needs assessment
  and shall approve the assessment before the expiration of the 90-day period
  beginning upon the receipt of the assessment, unless the Secretary determines
  that the assessment has not been provided in a substantially complete manner.
  (e) COST OF PREPARATION OF STRATEGY- The Secretary shall consider any costs
  relating to preparing a comprehensive needs assessment under this title for
  a covered multifamily housing property that do not exceed $5,000 for the
  property as an eligible project expense for the property. The Secretary
  shall provide that an owner may not increase the rental charge for any
  unit in a covered multifamily housing property to provide for the cost of
  preparing a comprehensive needs assessment.
  (f) NOTICE- The Secretary shall immediately notify each owner submitting a
  comprehensive needs assessment (and any State housing finance agency to which
  the owner has submitted an assessment under subsection (d)) of the approval
  or disapproval of the assessment upon making such determination. Within 30
  days after disapproving any assessment, the Secretary shall inform the owner
  in writing of the reasons for disapproval. The Secretary shall require any
  owner whose assessment is disapproved to resubmit an amended assessment
  not later than 30 days after the owner receives the notice of disapproval.
  (g) ANNUAL REVIEW AND REPORT OF FUNDING AND TARGETING FOR COVERED MULTIFAMILY
  PROPERTIES FOR THE ELDERLY-
  (1) REVIEW- The Secretary shall annually conduct a comprehensive review of--
  (A) the funding levels required to fully address the needs of covered
  multifamily housing properties for the elderly identified in the
  comprehensive needs assessments under section 403(b), specifically
  identifying any expenses necessary to make substantial repairs and add
  features (such as congregate dining facilities and commercial kitchens)
  resulting from development of a property in compliance with cost-containment
  requirements established by the Secretary;
  (B) the adequacy of the geographic targeting of resources provided under
  programs of the Department with respect to covered multifamily housing
  properties for the elderly, based on information acquired pursuant to
  section 403(b); and
  (C) local housing markets throughout the United States, with respect
  to the need, availability, and cost of housing for elderly persons and
  families, which shall include review of any information and plans relating
  to housing for elderly persons and families included in comprehensive
  housing affordability strategies submitted by jurisdictions pursuant to
  section 105 of the Cranston-Gonzalez National Affordable Housing Act.
  (2) REPORT- The Secretary of Housing and Urban Development shall submit
  a report to the Congress annually describing the results of the annual
  comprehensive needs assessments under section 402 for covered multifamily
  housing properties for the elderly and the annual review conducted under
  paragraph (1) of this subsection, which shall contain a description of
  the methods used by project owners and by the Secretary to acquire the
  information described in section 402(b) and any findings and recommendations
  of the Secretary pursuant to the review.
SEC. 405.  TROUBLED MULTIFAMILY HOUSING.
  (a) MANDATORY ELEMENTS- Section 201(d) of the Housing and Community
  Development Amendments of 1978 (12 U.S.C. 1715z-1a(d)) is amended--
  (1) in paragraph (5), by striking `and';
  (2) in paragraph (6), by striking the period and inserting a semicolon; and
  (3) by adding at the end the following new paragraphs:
  `(7) all reasonable attempts have been made to take all appropriate actions
  and provide suitable housing for project residents;
  `(8) the project has a feasible plan to involve the residents in project
  decisions;
  `(9) the affirmative fair housing marketing plan meets applicable
  requirements; and
  `(10) the owner certifies that it will comply with various equal opportunity
  statutes.'.
  (b) SELECTION CRITERIA-
  (1) REPEAL OF SECTION 201(k)(4)- Section 201(k)(4) of the Housing and
  Community Development Amendments of 1978 (12 U.S.C. 1715z-1a(k)(4))
  is repealed.
  (2) NEW CRITERIA- Section 201 of the Housing and Community Development
  Amendments of 1978 is amended by adding at the end the following new
  subsection:
  `(n)(1) The Secretary shall award assistance under this section to eligible
  projects on the basis of the following selection criteria:
  `(A) The extent to which the project presents an imminent threat to the
  life, health, and safety of project residents.
  `(B) The extent to which the project is financially troubled.
  `(C) The extent of physical improvements needed by the project as evidenced
  by the comprehensive needs assessment submitted in accordance with title
  IV of the Housing and Community Development Act of 1992.
  `(D) The extent to which there is evidence that there will be significant
  opportunities for residents (including a resident council or resident
  management corporation, as appropriate) to be involved in management of the
  project (except that this paragraph shall have no application to projects
  that are owned as cooperatives).
  `(E) The extent to which there is evidence that the project owner
  has provided competent management and complied with all regulatory and
  administrative instructions (including such instructions with respect to the
  comprehensive servicing of multifamily projects as the Secretary may issue).
  `(F) Such other criteria as the Secretary may specify by regulation or in
  a Federal Register notice of fund availability.
  `(2) Eligible projects that have federally insured mortgages in force are
  to be selected for award of assistance under this section before any other
  eligible project.'.
  (c) LOW-INCOME AFFORDABILITY RESTRICTIONS- Section 201(l)(2)(D)
  of the Housing and Community Development Amendments of 1978 (12
  U.S.C. 1715z-1a(l)(2)(D)) is amended by adding at the end the following:
  `The Secretary may require owners receiving assistance for capital
  improvements under this section to retain the housing as housing affordable
  for very low-income families or persons, low-income families or persons
  and moderate-income families or persons for the remaining useful life of
  the housing. For purposes of this section, the term `remaining useful life'
  means, with respect to housing assisted under this section, the period during
  which the physical characteristics of the housing remain in a condition
  suitable for occupancy, assuming normal maintenance and repairs are made
  and major systems and capital components are replaced as becomes necessary.'.
  (d) EXCLUSIVITY OF ASSISTANCE- Section 201 of the Housing and Community
  Development Amendments of 1978, as amended by this section, is further
  amended by adding at the end the following new subsection:
  `(o) Projects receiving assistance under this section are not eligible for
  prepayment incentives under the Emergency Low-Income Housing Preservation Act
  of 1987 or the Low-Income Housing Preservation and Resident Homeownership
  Act of 1990. Projects receiving financial assistance under such Acts are
  not eligible for assistance under this section.'.
  (e) OWNER CONTRIBUTIONS- Section 201(k)(2) of the Housing and Community
  Development Amendments of 1978 is amended--
  (1) in subparagraph (B), by striking `and';
  (2) in subparagraph (C), by striking the period and inserting `; and'; and
  (3) by adding at the end the following new subparagraph:
  `(D) the Secretary shall give owners credit for advances made to the
  project during a 3-year period prior to the application for assistance.'.
  (f) COORDINATION OF ASSISTANCE- Section 201 of the Housing and Community
  Development Amendments of 1978, as amended by this section, is further
  amended by adding at the end the following new subsection:
  `(p) The Secretary shall coordinate the allocation of assistance under this
  section with assistance made available under section 8(v) of the United
  States Housing Act of 1937 and section 203 of this Act to enhance the cost
  effectiveness of the Federal response to troubled multifamily housing.'.
SEC. 406. FLEXIBLE SUBSIDY PROGRAM.
  Section 201(d)(6) of the Housing and Community Development Amendments of
  1978 (12 U.S.C. 1715z-1a(d)(6)) is amended by inserting before the period
  at the end the following: `; and except that the Secretary shall review
  and approve or disapprove each plan not later than the expiration of the
  30-day period beginning upon the date of submission of the plan to the
  Secretary by the owner, but if the Secretary fails to inform the owner of
  approval or disapproval of the plan within such period the plan shall be
  considered to have been approved'.
SEC. 407. CAPACITY STUDY.
  Section 110(a) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12710(a)) is amended--
  (1) by striking `, and'; and
  (2) by striking the period at the end and inserting the following: `,
  and the ability to respond to areas identified as `material weaknesses' by
  the Office of the Inspector General in financial audits or other reports.'.
SEC. 408. FLEXIBLE SUBSIDY PROGRAM.
  (a) AUTHORIZATION OF APPROPRIATIONS- Section 201(j)(5) of the Housing
  and Community Development Amendments of 1978 (12 U.S.C. 1715z-1a(j)(5))
  is amended to read as follows:
  `(5) There is authorized to be appropriated for assistance under the
  flexible subsidy fund not to exceed $52,200,000 for fiscal year 1993 and
  $54,392,400 for fiscal year 1994.'.
  (b) USE OF SECTION 236 RENTAL ASSISTANCE FUND AMOUNTS FOR FLEXIBLE
  SUBSIDY PAYMENTS- Section 236(f)(3) of the National Housing Act (12
  U.S.C. 1715z-1a(f)(3)) is amended by striking `September 30, 1992' and
  inserting `September 30, 1994'.
TITLE V--MORTGAGE INSURANCE AND SECONDARY MORTGAGE MARKET
Subtitle A--FHA Mortgage Insurance Programs
SEC. 501. LIMITATION ON INSURANCE AUTHORITY.
  Section 531(b) of the National Housing Act (12 U.S.C. 1735f-9(b)) is
  amended to read as follows:
  `(b) Notwithstanding any other provision of law and subject only to the
  absence of qualified requests for insurance, to the authority provided
  in this Act, and to the limitation in subsection (a), the Secretary
  shall enter into commitments to insure mortgages under this Act with an
  aggregate principal amount of $65,905,824,960 during fiscal year 1993 and
  $68,673,868,600 during fiscal year 1994.'.
SEC. 502. FEDERAL HOUSING ADMINISTRATION ADVISORY BOARD.
  Section 202(b) of the National Housing Act (12 U.S.C. 1708(b)) is amended
  by adding at the end the following new paragraph:
  `(11) The Board shall terminate on January 1, 1995.'.
SEC. 503. MAXIMUM MORTGAGE AMOUNT.
  (a) IN GENERAL- The first sentence of section 203(b)(2) of the National
  Housing Act (12 U.S.C. 1709(b)(2)) is amended to read as follows: `Involve
  a principal obligation (including such initial service charges, appraisal,
  inspection, and other fees as the Secretary shall approve) in an amount--
  `(A) not to exceed the lesser of--
  `(i) in the case of a 1-family residence, 95 percent of the median 1-family
  house price in the area, as determined by the Secretary; in the case of
  a 2-family residence, 107 percent of such median price; in the case of a
  3-family residence, 130 percent of such median price; or in the case of
  a 4-family residence, 150 percent of such median price; or
  `(ii) 75 percent of the dollar amount limitation determined under section
  305(a)(2) of the Federal Home Loan Mortgage Corporation Act (as in effect
  on September 30, 1992) for a residence of the applicable size;
except that the applicable dollar amount limitation in effect for any area
under this subparagraph (A) may not be less than the dollar amount limitation
in effect under this section for the area on May 12, 1992; and
  `(B) except as otherwise provided in this paragraph (2), not to exceed an
  amount equal to the sum of--
  `(i) 97 percent of $25,000 of the appraised value of the property, as of
  the date the mortgage is accepted for insurance;
  `(ii) 95 percent of such value in excess of $25,000 but not in excess of
  $125,000; and
  `(iii) 90 percent of such value in excess of $125,000.'.
  (b) APPLICABILITY- The amendment made by subsection (a) shall apply only
  to mortgages executed on or after January 1, 1993.
  (c) CONFORMING AMENDMENTS-
  (1) TITLE I--LOANS- Notwithstanding any other provision of law, section
  2(b)(1) of the National Housing Act (12 U.S.C. 1703(b)(1)) is amended
  by striking subparagraphs (C), (D), and (E) and inserting the following
  new subparagraphs:
  `(C) $48,600 if made for the purpose of financing the purchase of a
  manufactured home;
  `(D) $64,800 if made for the purpose of financing the purchase of a
  manufactured home and a suitably developed lot on which to place the
  home; and
  `(E) $16,200 if made for the purpose of financing the purchase, by an owner
  of a manufactured home which is the principal residence of that owner, of
  a suitably developed lot on which to place that manufactured home, and if
  the owner certifies that he or she will place the manufactured home on the
  lot acquired with such loan within 6 months after the date of such loan.'.
  (2) HOME EQUITY CONVERSION MORTGAGES FOR ELDERLY HOMEOWNERS- Section 255(g)
  of the National Housing Act (12 U.S.C. 1715z-20(g)) is amended by striking
  `for a 1-family residence' and inserting `for 1-family residences in the area
  in which the dwelling subject to the mortgage under this section is located'.
  (3) RTC AFFORDABLE HOUSING PROGRAM- Subparagraphs (D)(ii) and (G)(II) of
  section 21A(c)(9) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(9))
  are each amended by striking `the applicable dollar amount' and all that
  follows through `areas)' and inserting the following: `$67,500 in the
  case of a 1-family residence, $76,000 in the case of a 2-family residence,
  $92,000 in the case of a 3-family residence, and $107,000 in the case of
  a 4-family residence'.
  (4) FDIC AFFORDABLE HOUSING PROGRAM- Paragraphs (4)(B) and (7)(B) of
  section 40(p) of the Federal Deposit Insurance Act (12 U.S.C. 1831q(p))
  are each amended to read as follows:
  `(B) that has an appraised value that does not exceed the amount provided
  in section 203(b)(2)(A) of the National Housing Act except that such
  amount shall not exceed $101,250 in the case of a 1-family residence,
  $114,000 in the case of a 2-family residence, $138,000 in the case of a
  3-family residence, and $160,000 in the case of a 4-family residence.'
  (d) GAO STUDY ON FHA LOAN LIMITS AND GSE CONFORMING LOAN LIMITS-
  (1) IN GENERAL- The Comptroller General of the United States shall submit
  to the Congress, on or before September 1, 1993, a report which evaluates
  the methodology used to establish the annual conforming loan limits for the
  secondary market, pursuant to section 305(a)(2) of the Federal Home Loan
  Mortgage Corporation Act, as well as the loan limits adjustments utilized
  under the single family mortgage insurance program under section 203 of
  the National Housing Act.
  (2) CONTENTS- The report shall--
  (A) evaluate the methodology used to determine the annual adjustment to the
  conforming loan limit, including the accuracy of using the Mortgage Interest
  Rate Survey (MIRS) in determining the median home sales price each year;
  (B) recommend any legislative or administrative changes to ensure that
  the conforming loan limits accurately reflect market dynamics;
  (C) assess the long-term consequences of indexing the mortgage limits
  utilized under the FHA section 203(b) single family mortgage insurance
  program to the annual adjustments to the conforming loan limits for the
  secondary market;
  (D) assess the impact of such annual adjustments on the ability of the
  FHA single family insurance program to serve low and moderate income
  borrowers; and
  (E) recommend alternative measures that could be employed to ensure that
  FHA can meet the needs of low and moderate income families in low and high
  cost areas of the country.
SEC. 504. FHA ANNUAL REPORT.
  Section 203 of the National Housing Act (12 U.S.C. 1709) is amended by
  adding at the end the following:
  `(v) ANNUAL REPORT- The Secretary of Housing and Urban Development shall
  submit to the Congress an annual report on the single family mortgage
  insurance program under this section. Each report shall set forth--
  `(1) an analysis of the income groups served by the single family insurance
  program, including--
  `(A) the percentage of borrowers whose incomes do not exceed 100 percent
  of the median income for the area;
  `(B) the percentage of borrowers whose incomes do not exceed 80 percent
  of the median income for the area; and
  `(C) the percentage of borrowers whose incomes do not exceed 60 percent
  of the median income for the area;
  `(2) an analysis of the percentage of minority borrowers annually assisted
  by the program; the percentage of central city borrowers assisted and the
  percentage of rural borrowers assisted by the program;
  `(3) the extent to which the Secretary in carrying out the program has
  employed methods to ensure that needs of low and moderate income families,
  underserved areas, and historically disadvantaged groups are served by
  the program; and
  `(4) the current impediments to having the program serve low and moderate
  income borrowers; borrowers from central city areas; borrowers from rural
  areas; and minority borrowers.
SEC. 505. MAXIMUM PRINCIPAL OBLIGATION OF MORTGAGES FOR VETERANS.
  (a) IN GENERAL- The first sentence of the last undesignated paragraph
  of section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2))
  is amended by striking `Notwithstanding any other provision of this
  paragraph,' and inserting `Except with respect to mortgages executed by
  mortgagors who are veterans,'.
  (b) TECHNICAL AMENDMENT- Section 203(b)(9) of the National Housing Act (12
  U.S.C. 1709(b)(9)) is amended by striking `(except in a case to which the
  next to the last sentence of paragraph (2) applies)' and inserting `(except
  with respect to a mortgage executed by a mortgagor who is a veteran)'.
SEC. 506. PREPURCHASE COUNSELING REQUIREMENT.
  (a) IN GENERAL- Section 203(b)(2) of the National Housing Act (12
  U.S.C. 1709(b)(2)) is amended by inserting at the end the following new
  undesignated paragraph:
  `Notwithstanding any other provision of this paragraph, the Secretary may
  not insure, or enter into a commitment to insure, a mortgage under this
  section that is executed by a first-time homebuyer and that involves a
  principal obligation (including such initial service charges, appraisal,
  inspection, and other fees as the Secretary shall approve) in excess of 97
  percent of the appraised value of the property unless the mortgagor has
  completed a program of counseling with respect to the responsibilities
  and financial management involved in homeownership that is approved by
  the Secretary; except that the Secretary may, in the discretion of the
  Secretary, waive the applicability of this requirement.'.
  (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
  mortgages for which commitments for insurance are issued after the expiration
  of the 12-month period beginning on the date of the enactment of this Act.
SEC. 507. AUTHORITY TO DECREASE INSURANCE PREMIUM CHARGES.
  (a) PERMANENT PROVISIONS- Section 203(c)(2) of the National Housing Act
  (12 U.S.C. 1709(c)(2)) is amended--
  (1) in subparagraph (A), by striking `equal to' and inserting `not
  exceeding'; and
  (2) in subparagraph (B)--
  (A) in the matter preceding clause (i), by striking `equal to' and inserting
  `not exceeding'; and
  (B) in clause (ii), by striking `equal to 0.55 percent' and inserting
  `not exceeding 0.55 percent'.
  (b) TRANSITION PROVISIONS- Section 2103(b) of the Omnibus Budget
  Reconciliation Act of 1990 (12 U.S.C. 1709 note) is amended--
  (1) in paragraph (1)--
  (A) in subparagraph (A), by striking `equal to' and inserting `not
  exceeding'; and
  (B) in subparagraph (B), in the matter preceding clause (i), by striking
  `equal to' and inserting `not exceeding'; and
  (2) in paragraph (2)--
  (A) in subparagraph (A), by striking `equal to' and inserting `not
  exceeding'; and
  (B) in subparagraph (B), in the matter preceding clause (i), by striking
  `equal to' and inserting `not exceeding'.
SEC. 508. STATUTE OF LIMITATIONS ON PAYMENT OF DISTRIBUTIVE SHARES.
  (a) DISTRIBUTION OF SHARES- Section 205(c) of the National Housing Act
  (12 U.S.C. 1711(c)) is amended by adding at the end the following two new
  sentences: `The Secretary shall not distribute any share to an eligible
  mortgagor under this subsection beginning on the date which is 6 years
  after the date the Secretary first transmitted written notification of
  eligibility to the last known address of the mortgagor, unless the mortgagor
  has applied in accordance with procedures prescribed by the Secretary for
  payment of the share within the 6-year period. The Secretary shall transfer
  any amounts no longer eligible for distribution under the previous sentence
  from the Participating Reserve Account to the General Surplus Account.'.
  (b) EXCEPTION- Notwithstanding the 6-year limitation on distribution
  of shares of the Participating Reserve Account under section 205(c) of
  the National Housing Act, the Secretary shall distribute a share to an
  otherwise eligible mortgagor in accordance with section 205(c), if the
  mortgagor applies for payment of the share within 1 year after the date of
  enactment of this Act in accordance with procedures in effect on such date.
SEC. 509. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS.
  (a) SECTION 207 LIMITS- Section 207(c)(3) of the National Housing Act
  (12 U.S.C. 1713(c)(3)) is amended--
  (1) by striking `$25,350', `$28,080', `$33,540', `$41,340', and `$46,800'
  and inserting `$30,420', `$33,696', `$40,248', `$49,608', and `$59,160',
  respectively; and
  (2) by striking `$29,250', `$32,760', `$40,170', `$50,310', and `$56,885'
  and inserting `$35,100', `$39,312', `$48,204', `$60,372', and `$68,262',
  respectively.
  (b) SECTION 213 LIMITS- Section 213(b)(2) of the National Housing Act
  (12 U.S.C. 1715e(b)(2)) is amended--
  (1) by striking `$25,350', `$28,080', `$33,540', `$41,340', and `$46,800'
  and inserting `$30,420', `$33,696', `$40,248', `$49,608', and `$59,160',
  respectively; and
  (2) by striking `$29,250', `$32,760', `$40,170', `$50,310', and `$56,885'
  and inserting `$35,100', `$39,312', `$48,204', `$60,372', and `$68,262',
  respectively.
  (c) SECTION 220 LIMITS- Section 220(d)(3)(B)(iii) of the National Housing
  Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is amended--
  (1) by striking `$25,350', `$28,080', `$33,540', `$41,340', and `$46,800'
  and inserting `$30,420', `$33,696', `$40,248', `$49,608', and `$59,160',
  respectively; and
  (2) by striking `$29,250', `$32,760', `$40,170', `$50,310', and `$56,885'
  and inserting `$35,100', `$39,312', `$48,204', `$60,372', and `$68,262',
  respectively.
  (d) SECTION 221(d)(3) LIMITS- Section 221(d)(3)(ii) of the National
  Housing Act (12 U.S.C. 1715l(d)(3)(ii)) is amended by striking `$28,032',
  `$32,321', `$38,979', `$49,893', `$55,583', `$29,500', `$33,816', `$41,120',
  `$53,195', and `$58,392' and inserting `$33,638', `$38,785', `$46,775',
  `$59,872', `$66,700', `$35,400', `$40,579', `$49,344', `$63,834', and
  `$70,070', respectively.
  (e) SECTION 221(d)(4) LIMITS- Section 221(d)(4)(ii) of the National
  Housing Act (12 U.S.C. 1715l(d)(4)(ii)) is amended by striking `$25,228',
  `$28,636', `$34,613', `$43,446', `$49,231', `$27,251', `$31,239', `$37,986',
  `$49,140', and `$53,942' and inserting `$30,274', `$34,363', `$41,536',
  `$52,135', `$59,077', `$32,701', `$37,487', `$45,583', `$58,968', and
  `$64,730', respectively.
  (f) SECTION 231 LIMITS- Section 231(c)(2) of the National Housing Act
  (12 U.S.C. 1715v(c)(2)) is amended--
  (1) by striking `$23,985', `$26,813', `$32,019', `$38,532', and `$45,300'
  and inserting `$28,782', `$32,176', `$38,423', `$46,238', and `$54,360',
  respectively; and
  (2) by striking `$27,251', `$31,239', `$37,986', `$49,140', and `$53,942'
  and inserting `$32,701', `$37,487', `$45,583', `$58,968', and `$64,730',
  respectively.
  (g) SECTION 234 LIMITS- Section 234(e)(3) of the National Housing Act
  (12 U.S.C. 1715y(e)(3)) is amended--
  (1) by striking `$25,350', `$28,080', `$33,540', `$41,340', and `$46,800'
  and inserting `$30,420', `$33,696', `$40,248', `$49,608', and `$59,160',
  respectively; and
  (2) by striking `$29,250', `$32,760', `$40,170', `$50,310', and `$56,885'
  and inserting `$35,100', `$39,312', `$48,204', `$60,372', and `$68,262',
  respectively.
  (h) REGULATIONS- The Secretary of Housing and Urban Development shall issue
  regulations necessary to carry out the amendments made by subsections (a)
  through (g), which shall take effect not later than the expiration of the
  1-year period beginning on the date of the enactment of this Act.
  (i) CONFORMING AMENDMENTS- Clauses (i)(II) and (ii)(II) of section
  21A(c)(9)(E) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(9)(E))
  are each amended by striking `the applicable dollar amount' and all that
  follows through `areas)' and inserting the following: `, for such part of
  the property as may be attributable to dwelling use (excluding exterior
  land improvements), $29,500 per family unit without a bedroom, $33,816
  per family unit with 1 bedroom, $41,120 per family unit with 2 bedrooms,
  $53,195 per family unit with 3 bedrooms, and $58,392 per family unit with
  4 or more bedrooms'.
SEC. 510. INSURANCE OF LOANS FOR OPERATING LOSSES OF MULTIFAMILY PROJECTS.
  Section 223(d) of the National Housing Act (12 U.S.C. 1715n(d)) is amended
  by adding at the end the following new paragraph:
  `(6) In determining the amount of an operating loss loan to be insured
  pursuant to this subsection, the Secretary shall not reduce such amount
  solely to reflect any amounts placed in escrow (at the time the existing
  project mortgage was insured) for initial operating deficits. If an operating
  loss loan was insured by the Secretary pursuant to this subsection before
  the date of the enactment of the Housing and Community Development Act
  of 1992 and was reduced solely to reflect the amount placed in escrow for
  initial operating deficits, the Secretary shall insure, to the extent of
  the availability of insurance authority provided in appropriation Acts,
  an increase in the existing loan or a separate loan, in an amount equal
  to the lesser of (A) the maximum amount permitted under this subsection
  and the applicable underwriting requirements established by the Secretary
  and in effect at the time the loan is to be made, or (B) the amount of
  the escrow for initial operating deficits.'.
SEC. 511. ELIGIBILITY OF ASSISTED LIVING FACILITIES FOR MORTGAGE INSURANCE
UNDER SECTION 232.
  (a) PURPOSE- Section 232(a) of the National Housing Act (12 U.S.C. 1715w(a))
  is amended--
  (1) in the matter preceding paragraph (1), by striking `either' and inserting
  `any'; and
  (2) by adding at the end the following new paragraph:
  `(3) The development of assisted living facilities for the care of frail
  elderly persons.'.
  (b) DEFINITIONS- Section 232(b) of the National Housing Act (12
  U.S.C. 1715w(b)) is amended--
  (1) in paragraph (4), by striking `and' at the end;
  (2) in paragraph (5), by striking the period at the end and inserting a
  semicolon; and
  (3) by adding at the end the following new paragraphs:
  `(6) the term `assisted living facility' means a public facility, proprietary
  facility, or facility of a private nonprofit corporation that--
  `(A) is licensed and regulated by the State (or if there is no State law
  providing for such licensing and regulation by the State, by the municipality
  or other political subdivision in which the facility is located);
  `(B) makes available to residents supportive services to assist the
  residents in carrying out activities of daily living, such as bathing,
  dressing, eating, getting in and out of bed or chairs, walking, going
  outdoors, using the toilet, laundry, home management, preparing meals,
  shopping for personal items, obtaining and taking medication, managing
  money, using the telephone, or performing light or heavy housework, and
  which may make available to residents home health care services, such as
  nursing and therapy; and
  `(C) provides separate dwelling units for residents, each of which may
  contain a full kitchen and bathroom, and which includes common rooms and
  other facilities appropriate for the provision of supportive services to
  the residents of the facility; and
  `(7) the term `frail elderly person' has the meaning given the term in
  section 802(k) of the Cranston-Gonzalez National Affordable Housing Act.'.
  (c) MORTGAGE REQUIREMENTS- Section 232(d) of the National Housing Act
  (12 U.S.C. 1715w(d)) is amended--
  (1) in the matter preceding paragraph (1)--
  (A) by inserting `, assisted living facility,' before `or intermediate
  care facility';
  (B) by striking `combined nursing home and intermediate care facility'
  and inserting `any combination of nursing home, assisted living facility,
  and intermediate care facility'; and
  (C) by inserting after `intermediate care facility' the first place it
  appears the following: `, including a new addition to an existing nursing
  home, assisted living facility, or intermediate care facility and regardless
  of whether the existing home or facility is being rehabilitated,';
  (2) in paragraph (2), in the matter preceding subparagraph (A), by inserting
  `or 95 percent of the estimated value of the property or project in the
  case of a mortgagor that is a private nonprofit corporation or association
  (under the meaning given such term for purposes of section 221(d)(3)
  of this Act),' before `including';
  (3) in paragraph (3), by adding at the end the following: `The Secretary
  shall not promulgate regulations or establish terms or conditions that
  interfere with the ability of the mortgagor and mortgagee to determine
  the interest rate; and
  (4) in paragraph (4), by adding at the end the following new subparagraph:
  `(C) With respect to assisted living facilities or any such facility
  combined with any other home or facility, the Secretary shall not insure
  any mortgage under this section unless--
  `(i) the Secretary determines that the level of financing acquired by
  the mortgagor and any other resources available for the facility will
  be sufficient to ensure that the facility contains dwelling units and
  facilities for the provision of supportive services in accordance with
  subsection (b)(6);
  `(ii) the mortgagor provides assurances satisfactory to the Secretary that
  each dwelling unit in the facility will not be occupied by more than 1
  person without the consent of all such occupants; and
  `(iii) the appropriate State licensing agency for the State, municipality,
  or other political subdivision in which the facility is or is to be located
  provides such assurances as the Secretary considers necessary that the
  facility will comply with any applicable standards and requirements for
  such facilities.'.
  (d) FIRE SAFETY EQUIPMENT- Section 232(i)(1) of the National Housing Act (12
  U.S.C. 1715w(i)(1)) is amended by inserting `, assisted living facilities,'
  after `nursing homes'.
  (e) ADMINISTRATION- Section 232 of the National Housing Act (12 U.S.C. 1715w)
  is amended by adding at the end the following new subsection:
  `(j) The Secretary shall establish schedules and deadlines for the processing
  and approval (or provision of notice of disapproval) of applications for
  mortgage insurance under this section. The Secretary shall submit a report
  to the Congress annually describing such schedules and deadlines and the
  extent of compliance by the Department with the schedules and deadlines
  during the year.'.
  (f) AUTHORITY TO INSURE REFINANCING- Section 223(f) of the National Housing
  Act (12 U.S.C. 1715n(f)) is amended by inserting `existing assisted living
  facility,' after `existing nursing home,' each place it appears.
SEC. 512. EXPEDITING INSURANCE FOR ACQUISITION OF RESOLUTION TRUST CORPORATION
PROPERTY.
  (a) IN GENERAL- Section 534 of the National Housing Act (12 U.S.C. 1735f-12)
  is amended--
  (1) by inserting `(a) STATE OFFICES- ' after `534.'; and
  (2) by adding at the end the following new subsection:
  `(b) EXPEDITED PROCEDURE FOR RTC PROPERTIES- To assist the Resolution Trust
  Corporation in disposing of the property to which it acquires title and
  to ensure the timely processing of applications for insurance of loans
  and mortgages under this Act that will be used to purchase multifamily
  residential property from the Resolution Trust Corporation, the Secretary
  shall establish an expedited procedure for considering such applications.'.
  (b) IMPLEMENTATION- The procedure referred to in the amendment made by
  subsection (a) shall be established through interim and final regulations
  issued by the Secretary. The Secretary shall issue interim regulations
  implementing the procedure not later than the expiration of the 90-day
  period beginning on the date of the enactment of this Act, which shall be
  effective upon issuance. The Secretary shall issue final regulations after
  notice and opportunity for public comment pursuant to the provisions of
  section 553 of title 5, United States Code (notwithstanding subsections
  (a)(2), (b)(B), and (d)(3) of such section).
SEC. 513. ENERGY EFFICIENT MORTGAGES PILOT PROGRAM.
  (a) ESTABLISHMENT OF PILOT PROGRAM-
  (1) IN GENERAL- Not later than 6 months after the date of enactment of this
  Act, the Secretary of Housing and Urban Development (hereafter referred
  to as the `Secretary') shall establish an energy efficient mortgage pilot
  program in 5 States, to promote the purchase of existing energy efficient
  residential buildings and the installation of cost-effective improvements
  in existing residential buildings.
  (2) PILOT PROGRAM- The pilot program established under this subsection
  shall include the following criteria, where applicable:
  (A) ORIGINATION- The lender shall originate a housing loan that is insured
  under title II of the National Housing Act in accordance with the applicable
  requirements.
  (B) APPROVAL- The mortgagor's base loan application shall be approved if
  the mortgagor's income and credit record is found to be satisfactory.
  (C) COST OF IMPROVEMENTS- The cost of cost-effective energy efficiency
  improvements shall not exceed the greater of--
  (i) 5 percent of the property value (not to exceed $8,000); or
  (ii) $4,000.
  (3) AUTHORITY FOR MORTGAGEES- In granting mortgages under the pilot program
  established pursuant to this subsection, the Secretary shall grant mortgagees
  the authority--
  (A) to permit the final loan amount to exceed the loan limits established
  under title II of the National Housing Act by an amount not to exceed 100
  percent of the cost of the cost-effective energy efficiency improvements,
  if the mortgagor's request to add the cost of such improvements is received
  by the mortgagee prior to funding of the base loan;
  (B) to hold in escrow all funds provided to the mortgagor to undertake
  the energy efficiency improvements until the efficiency improvements are
  actually installed; and
  (C) to transfer or sell the energy efficient mortgage to the appropriate
  secondary market agency, after the mortgage is issued, but before the
  energy efficiency improvements are actually installed.
  (4) PROMOTION OF PILOT PROGRAM- The Secretary shall encourage participation
  in the energy efficient mortgage pilot program by--
  (A) making available information to lending agencies and other appropriate
  authorities regarding the availability and benefits of energy efficient
  mortgages;
  (B) requiring mortgagees and designated lending authorities to provide
  written notice of the availability and benefits of the pilot program
  to mortgagors applying for financing in those States designated by the
  Secretary as participating under the pilot program; and
  (C) requiring each applicant for a mortgage insured under title II of the
  National Housing Act in those States participating under the pilot program
  to sign a statement that such applicant has been informed of the program
  requirements and understands the benefits of energy efficient mortgages.
  (5) TRAINING PROGRAM- Not later than 9 months after the date of enactment
  of this Act, the Secretary, in consultation with the Secretary of Energy,
  shall establish and implement a program for training personnel at relevant
  lending agencies, real estate companies, and other appropriate organizations
  regarding the benefits of energy efficient mortgages and the operation of
  the pilot program under this subsection.
  (6) REPORT- Not later than 18 months after the date of enactment of this
  Act, the Secretary shall prepare and submit a report to the Congress
  describing the effectiveness and implementation of the energy efficient
  mortgage pilot program as described under this subsection, and assessing
  the potential for expanding the pilot program nationwide.
  (b) EXPANSION OF PROGRAM- Not later than the expiration of the 2-year
  period beginning on the date of the implementation of the energy efficient
  mortgage pilot program under this section, the Secretary of Housing and Urban
  Development shall expand the pilot program on a nationwide basis and shall
  expand the program to include new residential housing, unless the Secretary
  determines that either such expansion would not be practicable in which case
  the Secretary shall submit to the Congress, before the expiration of such
  period, a report explaining why either expansion would not be practicable.
  (c) DEFINITIONS- For purposes of this section:
  (1) The term `base loan' means any mortgage loan for a residential building
  eligible for insurance under title II of the National Housing Act or title
  38, United States Code, that does not include the cost of cost-effective
  energy improvements.
  (2) The term `cost-effective' means, with respect to energy efficiency
  improvements to a residential building, improvements that result in the
  total present value cost of the improvements (including any maintenance
  and repair expenses) being less than the total present value of the energy
  saved over the useful life of the improvement, when 100 percent of the cost
  of improvements is added to the base loan. For purposes of this paragraph,
  savings and cost-effectiveness shall be determined pursuant to a home
  energy rating report sufficient for purposes of the Federal National
  Mortgage Association and the Federal Home Loan Mortgage Corporation,
  or by other technically accurate methods.
  (3) The term `energy efficient mortgage' means a mortgage on a residential
  building that recognizes the energy savings of a home that has cost-effective
  energy saving construction or improvements (including solar water heaters,
  solar-assisted air conditioners and ventilators, super-insulation, and
  insulating glass and film) and that has the effect of not disqualifying
  a borrower who, but for the expenditures on energy saving construction or
  improvements, would otherwise have qualified for a base loan.
  (4) The term `residential building' means any attached or unattached single
  family residence.
  (d) RULE OF CONSTRUCTION- This section may not be construed to affect
  any other programs of the Secretary of Housing and Urban Development for
  energy-efficient mortgages. The pilot program carried out under this section
  shall not replace or result in the termination of such other programs.
  (e) REGULATIONS- The Secretary shall issue any regulations necessary to
  carry out this section not later than the expiration of the 180-day period
  beginning on the date of the enactment of this Act. The regulations shall
  be issued after notice and opportunity for public comment pursuant to the
  provisions of section 553 of title 5, United States Code (notwithstanding
  subsections (a)(2), (b)(B), and (d)(3) of such section).
  (f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  such sums as may be necessary to carry out this section.
SEC. 514. STUDY REGARDING HOME WARRANTY PLANS.
  (a) IN GENERAL- The Secretary of Housing and Urban Development (hereafter in
  this section referred to as the `Secretary') shall conduct a study of home
  and builder's warranties and protection plans regarding the construction
  of, and materials used in, 1- to 4-family dwellings subject to mortgages
  insured under title II of the National Housing Act.
  (b) SCOPE OF STUDY- The study shall analyze--
  (1) the extent to which home sellers and builders use such warranties
  and plans,
  (2) how such warranties and plans affect the single family mortgage
  insurance program under the National Housing Act and the solvency of the
  Mutual Mortgage Insurance Fund,
  (3) any effects on homeowners of reliance upon such warranties and plans,
  (4) the cost of inspections of mortgaged homes not covered by such warranties
  or plans,
  (5) how quickly the issuers of such warranties and plans pay claims to
  homeowners under the warranties and plans,
  (6) how well such warranties and plans provide for the prevention of
  structural damage before damage occurs,
  (7) how responsive the issuers are to homeowner complaints,
  (8) the extent to which homeowners are adequately informed of the extent
  of insurance coverage, the complaint procedures, and the arbitration
  procedures available to them under such warranties and plans,
  (9) the extent to which the arbitration process used to settle claims under
  such warranties and plans provides fair and reasonable relief for homeowners,
  (10) how well homeowners are informed of their right to appeal the decision
  of such arbitrators to the Secretary,
  (11) whether the reporting and inspection requirements to which such
  warranties and plans are subject provide the Secretary with sufficient
  information to verify that such warranties and plans are acceptable,
  (12) whether dwellings covered by such warranties and plans satisfy all
  requirements which would have been applicable if such dwellings had been
  approved for mortgage insurance by the Secretary before the beginning of
  construction, and
  (13) any other issues relating to such warranties and plans that the
  Secretary considers appropriate.
  (c) REPORT- The Secretary shall submit a report to the Congress regarding the
  findings of the study and any recommendations of the Secretary resulting
  from the study, not later than the expiration of the 12-month period
  beginning on the date of the enactment of this Act.
SEC. 515. EXPENDITURES TO CORRECT DEFECTS.
  Section 518(a) of the National Housing Act (12 U.S.C. 1735b(a)) is amended--
  (1) by redesignating paragraphs (1) through (3) as subparagraphs (A)
  through (C), respectively; and
  (2) by striking out `The Secretary' and all that follows through `make
  expenditures for' and inserting in lieu thereof the following:
  `(1) The Secretary is authorized to make expenditures under this subsection
  with respect to any property that--
  `(A) is a condominium unit (including common areas) or is improved by a
  one-to-four family dwelling;
  `(B) was approved, before the beginning of construction, for mortgage
  insurance under this Act or for guaranty, insurance, or direct loan under
  chapter 37 of title 38, United States Code, or was less than a year old
  at the time of insurance of the mortgage and was covered by a consumer
  protection or warranty plan acceptable to the Secretary; and
  `(C) the Secretary finds to have structural defects.
  `(2) Expenditures under this subsection may be made for'.
SEC. 516. PAYMENT OF MORTGAGE INSURANCE CLAIMS.
  (a) PAYMENT OF INSURANCE- Section 204 of the National Housing Act (12
  U.S.C. 1710) is amended--
  (1) in the fifth sentence of subsection (a), by striking `, subject to the
  cash adjustment hereinafter provided, issue to the mortgagee debentures
  having a total face value' and insert in lieu thereof the following:
  `issue to the mortgagee debentures having a par value';
  (2) by striking subsection (c) and inserting the following:
  `(c) Debentures issued under this section--
  `(1) shall be in such form and amounts;
  `(2) shall be subject to such terms and conditions;
  `(3) shall include such provisions for redemption, if any, as may be
  prescribed by the Secretary of Housing and Urban Development, with the
  approval of the Secretary of the Treasury; and
  `(4) may be in book entry or certificated registered form, or such other
  form as the Secretary of Housing and Urban Development may prescribe in
  regulations.';
  (3) in the first sentence of subsection (d)--
  (A) by striking `executed' and inserting `issued'; and
  (B) by striking `, shall be signed by the Secretary by either his written or
  engraved signature, and shall be negotiable' and inserting the following:
  `and shall be negotiable, and, if in book entry form, transferable, in
  the manner described by the Secretary in regulations'; and
  (4) by striking in the fifth sentence of subsection (d) `and such guaranty'
  and inserting the following: `and, in the case of debentures issued in
  certificated registered form, such guaranty'.
  (b) RENTAL HOUSING INSURANCE- Section 207 of the National Housing Act
  (12 U.S.C.  1713) is amended--
  (1) by striking in the second sentence of subsection (g) `, subject to the
  cash adjustment provided for in subsection (j), issue to the mortgagee a
  certificate of claim as provided in subsection (h), and debentures having
  a total face value' and inserting the following: `issue to the mortgagee a
  certificate of claim as provided in subsection (h), and debentures having
  a par value';
  (2) by striking in the first sentence of subsection (i) `shall be signed
  by the Secretary, by either his written or engraved signature, shall be
  negotiable' and inserting the following: `shall be negotiable, and, if in
  book entry form, transferable, in the manner described by the Secretary
  in regulations';
  (3) by striking in the fourth sentence of subsection (i) `and such guaranty'
  and inserting the following: `and, in the case of debentures issued in
  certificated registered form, such guaranty'; and
  (4) by striking subsection (j) and inserting the following:
   `(j) Debentures issued under this section--
  `(1) shall be in such form and amounts;
  `(2) shall be subject to such terms and conditions;
  `(3) shall include such provisions for redemption, if any, as may be
  prescribed by the Secretary of Housing and Urban Development, with the
  approval of the Secretary of the Treasury; and
  `(4) may be in book entry or certificated registered form, or such other
  form as the Secretary of Housing and Urban Development may prescribe in
  regulations.'.
  (c) REHABILITATION AND NEIGHBORHOOD CONSERVATION HOUSING INSURANCE-
  Section 220(h) of the National Housing Act (12 U.S.C. 1715k) is amended--
  (1) by striking in the first sentence of paragraph (7), `shall be signed
  by the Secretary, by either his written or engraved signature, shall be
  negotiable' and inserting the following: `shall be negotiable, and, if in
  book entry form, transferable, in the manner described by the Secretary
  in regulations';
  (2) by striking in the fourth sentence of paragraph (h)(7) `and the
  guaranty' and inserting the following: `and, in the case of debentures
  issued in certificated registered form, the guaranty';
  (3) by striking the sixth sentence of paragraph (7), and inserting the
  following: `Debentures issued under this subsection shall be in such form
  and amounts; shall be subject to such terms and conditions; and shall
  include such provisions for redemption, if any, as may be prescribed
  by the Secretary of Housing and Urban Development, with the approval of
  the Secretary of the Treasury; and may be in book entry or certificated
  registered form, or such other form as the Secretary of Housing and Urban
  Development may prescribe in regulations.'; and
  (4) by striking the last sentence of paragraph (7).
  (d) HOUSING FOR MODERATE INCOME AND DISPLACED FAMILIES- The second
  sentence of section 221(g)(4)(A) of the National Housing Act (12
  U.S.C. 1715l(g)(4)(A)) is amended by striking `, subject to the cash
  adjustment provided herein, issue to the mortgagee debentures having total
  face value' and inserting the following: `issue to the mortgagee debentures
  having a par value'.
SEC. 517. COVERAGE OF THE MULTIFAMILY MORTGAGE FORECLOSURE ACT.
  (a) PURPOSES- Section 362 of the Multifamily Mortgage Foreclosure Act of
  1981 (12 U.S.C. 3701) is amended--
  (1) in subsection (a)(1), by striking `real estate' and all that follows
  through `properties' and inserting: `multifamily mortgages'; and
  (2) in subsection (b), by striking `multiunit' and all that follows through
  `1964' and inserting `multifamily mortgages'.
  (b) DEFINITION- Section 363(2) of the Multifamily Mortgage Foreclosure
  Act of 1981 (12 U.S.C. 3702(2)) is amended to read as follows:
  `(2) `multifamily mortgage' means a mortgage held by the Secretary
  pursuant to--
  `(A) section 608 or 801, or title II or X, of the National Housing Act;
  `(B) section 312 of the Housing Act of 1964, as it existed immediately
  before its repeal by section 289 of the Cranston-Gonzalez National Affordable
  Housing Act;
  `(C) section 202 of the Housing Act of 1959, as it existed immediately
  before its amendment by section 801 of the Cranston-Gonzalez National
  Affordable Housing Act;
  `(D) section 202 of the Housing Act of 1959, as amended by section 801 of
  the Cranston-Gonzalez National Affordable Housing Act; and
  `(E) section 811 of the Cranston-Gonzalez National Affordable Housing Act.'.
  (c) PREREQUISITES TO FORECLOSURE- The last sentence of section 366 of the
  Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C. 3705) is amended
  by striking `status' and all that follows through `rents' and inserting
  the following: `status, relief under an assignment of rents, or transfer
  to a nonprofit entity pursuant to section 202 of the Housing Act of 1959
  (as amended by section 801 of the Cranston-Gonzalez National Affordable
  Housing Act) or section 811 of the Cranston-Gonzalez National Affordable
  Housing Act'.
  (d) NOTICE- Section 367(b)(1) of the Multifamily Mortgage Foreclosure Act
  of 1981 (12 U.S.C. 3706(b)(1)) is amended to read as follows:
  `(b)(1) Except as provided in paragraph (2)(A), the Secretary may require,
  as a condition and term of sale, that the purchaser at a foreclosure sale
  under this part agree to continue to operate the security property in
  accordance with the terms of the program under which the mortgage insurance
  or assistance was provided, or any applicable regulatory or other agreement
  in effect with respect to such property immediately prior to the time of
  foreclosure sale.'.
SEC.  518. MORTGAGEE REVIEW BOARD.
  Section 202(c)(3)(C) of the National Housing Act (12 U.S.C. 1708(c)(3)(C))
  is amended--
  (1) by inserting `temporarily' after `order';
  (2) by inserting `(i)' after `Administration if';
  (3) by inserting `(ii)' after `violations and'; and
  (4) by striking the period after `6 months' and inserting the following: `,
  and for not longer than 1 year.  The Board may extend the suspension for an
  additional 6 months if it determines the extension is in the public interest.
  If the Board and the mortgagee agree, these time limits may be extended.'.
SEC. 519. DEFINITION OF MORTGAGEE.
  Section 202(c) of the National Housing Act (12 U.S.C. 1708(c)) is amended--
  (1) by striking paragraph (6)(D); and
  (2) by redesignating paragraph (7) as paragraph (8), and inserting the
  following after paragraph (6):
  `(7) DEFINITION OF `MORTGAGEE'- For purposes of this subsection, the term
  `mortgagee' means--
  `(A) a mortgagee approved under this Act;
  `(B) a lender or a loan correspondent approved under title I of this Act;
  `(C) a branch office or subsidiary of the mortgagee, lender, or loan
  correspondent; or
  `(D) a director, officer, employee, agent, or other person participating in
  the conduct of the affairs of the mortgagee, lender, or loan correspondent.'.
SEC. 520. EXEMPTION FROM SECTION 137(b) OF THE TRUTH IN LENDING ACT.
  Section 255(j) of the National Housing Act (12 U.S.C. 1715z-20(j)) is
  amended by adding at the end the following: `Section 137(b) of the Truth
  in Lending Act (15 U.S.C. 1647(b)) and any implementing regulations issued
  by the Board of Governors of the Federal Reserve System shall not apply
  to a mortgage insured under this section.'.
Subtitle B--Secondary Mortgage Market Programs
SEC. 531. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-BACKED SECURITIES.
  Section 306(g)(2) of the Federal National Mortgage Association Charter Act
  (12 U.S.C. 1721(g)(2)) is amended to read as follows:
  `(2) Notwithstanding any other provision of law and subject only to the
  absence of qualified requests for guarantees, to the authority provided in
  this subsection, and to the extent of or in such amounts as any funding
  limitation approved in appropriation Acts, the Association shall enter
  into commitments to issue guarantees under this subsection in an aggregate
  amount of $88,000,000,000 during fiscal year 1993 and $91,696,000,000 during
  fiscal year 1994. There is authorized to be appropriated such sums as may
  be necessary to cover the costs (as such term is defined in section 502
  of the Congressional Budget Act of 1974) of guarantees issued under this
  Act by the Association.'.
SEC. 532. AUTHORITY FOR GNMA TO MAKE HARDSHIP INTEREST PAYMENTS.
  Section 306(g)(1) of the Federal National Mortgage Association Charter
  Act (12 U.S.C. 1721(g)(1)) is amended by inserting after the period at
  the end of the third sentence the following new sentence: `In any case
  in which (I) Federal law requires the reduction of the interest rate on
  any mortgage backing a security guaranteed under this subsection, (II)
  the mortgagor under the mortgage is a person in the military service, and
  (III) the issuer of such security fails to receive from the mortgagor the
  full amount of interest payment due, the Association may make payments of
  interest on the security in amounts not exceeding the difference between
  the amount payable under the interest rate on the mortgage and the amount
  of interest actually paid by the mortgagor.'.
Subtitle C--Improvement of Financing for Multifamily Housing
SEC. 541. SHORT TITLE.
  This subtitle may be cited as the `Multifamily Housing Finance Improvement
  Act'.
SEC. 542. MULTIFAMILY MORTGAGE CREDIT DEMONSTRATIONS.
  (a) IN GENERAL- The Secretary of Housing and Urban Development (hereinafter
  referred to as the `Secretary') shall carry out programs through the Federal
  Housing Administration to demonstrate the effectiveness of providing new
  forms of Federal credit enhancement for multifamily loans. In carrying
  out demonstration programs, the Secretary shall include an evaluation
  of the effectiveness of entering into partnerships or other contractual
  arrangements including reinsurance and risk-sharing agreements with State
  or local housing finance agencies, the Federal Housing Finance Board,
  the Federal National Mortgage Association, the Federal Home Loan Mortgage
  Corporation, qualified financial institutions, and other State or local
  mortgage insurance companies or bank lending consortia.
  (b) RISK-SHARING PILOT PROGRAM-
  (1) IN GENERAL- The Secretary shall carry out a pilot program through
  the Federal Housing Administration to provide for risk sharing related to
  mortgages on multifamily housing.
  (2) AUTHORITY FOR REINSURANCE AGREEMENTS- The Secretary may enter into
  reinsurance agreements (as such term is defined in section 544) with the
  Federal National Mortgage Association, the Federal Home Loan Mortgage
  Corporation, qualified financial institutions, qualified housing finance
  agencies, and the Federal Housing Finance Board.  The agreements may provide
  for risk-sharing and other forms of credit enhancement with respect to
  mortgage lending on multifamily housing, including reinsurance with respect
  to pools of loans on multifamily housing properties, that the Secretary
  determines to be appropriate to carry out the purposes of this subsection.
  The agreements shall be in a form and have such terms and conditions as
  the Secretary determines to be appropriate to carry out the purposes of
  this subsection.
  (3) DEVELOPMENT OF ALTERNATIVES- The Secretary shall develop and assess a
  variety of risk-sharing alternatives, including arrangements under which
  the Secretary assumes an appropriate share of the risk related to long-term
  mortgage loans on newly constructed or acquired multifamily rental housing,
  mortgage refinancings, bridge financing for construction, and other forms of
  multifamily housing mortgage lending that the Secretary deems appropriate
  to carry out the purposes of this subsection. Such alternatives shall
  be designed--
  (A) to ensure that other parties bear a share of the risk, in percentage
  amount and in position of exposure, that is sufficient to create strong,
  market-oriented incentives for other participating parties to maintain
  sound underwriting and loan management practices;
  (B) to develop credit mechanisms, including sound underwriting criteria,
  processing methods, and credit enhancements, through which resources of
  the Federal Housing Administration can assist in increasing multifamily
  housing lending as needed to meet the expected need in the United States;
  (C) to provide a more adequate supply of mortgage credit for sound
  multifamily rental housing projects in underserved urban and rural markets;
  (D) to encourage major financial institutions to expand their participation
  in mortgage lending for sound multifamily housing, through means such
  as mitigating uncertainties regarding actions of the Federal Government
  (including the possible failure to renew short-term subsidy contracts);
  (E) to increase the efficiency, and lower the costs to the Federal
  Government, of processing and servicing multifamily housing mortgage loans
  insured by the Federal Housing Administration; and
  (F) to improve the quality and expertise of Federal Housing Administration
  staff and other resources, as required for sound management of reinsurance
  and other market-oriented forms of credit enhancement.
  (4) ELIGIBILITY STANDARDS- The Secretary shall establish and enforce
  standards for financial institutions and entities to be eligible to
  enter into reinsurance agreements under this subsection, as the Secretary
  determines to be appropriate.
  (5) FUNDING- Using any authority provided in appropriation Acts to
  insure loans under the National Housing Act, the Secretary may enter
  into commitments under this subsection for risk sharing with respect to
  mortgages on not more than 15,000 units over fiscal years 1993 and 1994. The
  demonstration authorized under this subsection shall not be expanded until
  the reports required under subsection (d) are submitted to Congress.
  (6) FEES- The Secretary shall establish and collect premiums and fees under
  this subsection as the Secretary determines appropriate to (A) achieve
  the purpose of this subsection, and (B) compensate the Federal Housing
  Administration for the risks assumed and related administrative costs.
  (7) NON-FEDERAL PARTICIPATION- The Secretary shall carry out this
  subsection, to the maximum extent practicable, with the participation of
  well-established residential mortgage originators, financial institutions
  that invest in multifamily housing mortgages, multifamily housing sponsors,
  and such other private sector experts in multifamily housing finance as
  the Secretary determines to be appropriate.
  (8) TIMING- The Secretary shall take any administrative actions necessary
  to initiate the pilot program under this subsection not later than the
  expiration of the 8-month period beginning on the date of the enactment
  of this Act.
  (c) HOUSING FINANCE AGENCY PILOT PROGRAM-
  (1) IN GENERAL- The Secretary shall carry out a specific pilot program in
  conjunction with qualified housing finance agencies to test the effectiveness
  of Federal credit enhancement for loans for affordable multifamily housing
  through a system of risk-sharing agreements with such agencies.
  (2) PILOT PROGRAM REQUIREMENTS-
  (A) IN GENERAL- In carrying out the pilot program authorized under this
  subsection, the Secretary shall enter into risk-sharing agreements with
  qualified housing finance agencies.
  (B) MORTGAGE INSURANCE- Agreements under subparagraph (A) shall provide
  for full mortgage insurance through the Federal Housing Administration
  of the loans for affordable multifamily housing originated by or through
  qualified housing finance agencies and for reimbursement to the Secretary
  by such agencies for either all or a portion of the losses incurred on
  the loans insured.
  (C) RISK APPORTIONMENT- Agreements entered into under this subsection
  between the Secretary and a qualified housing finance agency shall specify
  the percentage of loss that each of the parties to the agreement will assume
  in the event of default of the insured multifamily mortgage.  Such agreements
  shall specify that the qualified housing finance agency and the Secretary
  shall share equally the full amount of any loss on the insured mortgage.
  (D) REIMBURSEMENT CAPACITY- Agreements entered into under this subsection
  between the Secretary and a qualified housing finance agency shall provide
  evidence of the capacity of such agency to fulfill any reimbursement
  obligations made pursuant to this subsection.  Evidence of such capacity
  may include--
  (i) a pledge of the full faith and credit of a qualified State or local
  agency to fulfill any obligations entered into by the qualified housing
  finance agency;
  (ii) reserves pledged or otherwise restricted by the qualified housing
  finance agency in an amount equal to an agreed upon percentage of the loss
  assumed by the housing finance agency under subparagraph (C);
  (iii) funds pledged through a State or local guarantee fund; or
  (iv) any other form of evidence mutually agreed upon by the Secretary and
  the qualified housing finance agency.
  (E) UNDERWRITING STANDARDS- The Secretary shall allow any qualified
  housing finance agency to use its own underwriting standards and loan
  terms and conditions for purposes of underwriting loans to be insured under
  this subsection without further review by the Secretary, except that the
  Secretary may impose additional underwriting criteria and loan terms and
  conditions for contractual agreements where the Secretary retains more
  than 50 percent of the risk of loss.
  (3) MORTGAGE INSURANCE PREMIUMS- The Secretary shall establish a schedule
  of insurance premium payments for mortgages insured under this subsection
  based on the percentage of loss the Secretary may assume.  Such schedule
  shall reflect lower or nominal premiums for qualified housing finance
  agencies that assume a greater share of the risk apportioned according to
  paragraph (2)(C).
  (4) LIMITATION ON INSURANCE AUTHORITY- Using any authority provided by
  appropriations Acts to insure mortgages under the National Housing Act,
  the Secretary may enter into commitments under this subsection with respect
  to mortgages on not to exceed 30,000 units over fiscal years 1993, 1994,
  and 1995. The demonstration authorized under this subsection shall not be
  expanded until the reports required under subsection (d) are submitted to
  the Congress.
  (5) IDENTITY OF INTEREST- Notwithstanding any other provision of law, the
  Secretary shall not apply identity of interest provisions to agreements
  entered into with qualified State housing finance agencies under this
  subsection.
  (6) PROHIBITION ON GINNIE MAE SECURITIZATION- The Government National
  Mortgage Association shall not securitize any multifamily loans insured
  under this subsection.
  (7) QUALIFICATION AS AFFORDABLE HOUSING- Multifamily housing securing
  loans insured under this subsection shall qualify as affordable only if
  the housing is occupied by very low-income families and bears rents not
  greater than the gross rent for rent-restricted residential units as
  determined under section 42(g)(2) of the Internal Revenue Code of 1986.
  (8) REGULATIONS- Not later than 90 days after the date of enactment of
  this Act, the Secretary shall issue such regulations as may be necessary
  to carry out this subsection.
  (d) INDEPENDENT STUDIES AND REPORTS-
  (1) FEDERAL NATIONAL MORTGAGE ASSOCIATION- The Federal National Mortgage
  Association, in consultation with representatives of its seller-servicers
  and State housing finance agencies, shall carry out an independent assessment
  of alternative methods for achieving the purposes of this section and shall
  submit a report containing any findings and recommendations, including any
  recommendations for legislative or administrative action, simultaneously
  to the Secretary and the Congress not later than 12 months after the date
  of the enactment of this Act.
  (2) FEDERAL HOME LOAN MORTGAGE CORPORATION- The Federal Home Loan Mortgage
  Corporation, in consultation with representatives of its seller-servicers
  and State housing finance agencies, shall carry out an independent assessment
  of alternative methods for achieving the purposes of this section and shall
  submit a report containing any findings and recommendations, including any
  recommendations for legislative or administrative action, simultaneously
  to the Secretary and the Congress not later than 12 months after the date
  of the enactment of this Act.
  (3) SECRETARY- The Secretary shall submit to the Congress, and publish,
  reports under this paragraph assessing the activities carried out under each
  of the pilot programs. The Secretary shall submit and publish a preliminary
  report under this paragraph not later than 9 months after the date of the
  implementation of each of the pilot programs, and a final report not later
  than 24 months after the date of implementation on which the pilot program
  is initiated, which shall include any recommendations by the Secretary
  for legislative changes to achieve the purposes of this section.
  (4) COMPTROLLER GENERAL- The Comptroller General of the United States shall
  carry out an evaluation of each of the pilot programs under this section
  and shall submit to the Congress, not later than 30 months after the date
  of implementation for each of the pilot programs, a report regarding the
  evaluation, together with any recommendations for legislative changes to
  achieve the purposes of this section. The Comptroller General shall also
  submit to the Congress a report containing a preliminary assessment of
  the pilot program not later than 18 months after the date of enactment of
  this Act.
  (5) FEDERAL HOUSING FINANCE BOARD- The Federal Housing Finance Board shall
  monitor and assess the activities carried out under the pilot programs under
  this section. The Federal Housing Finance Board shall submit a preliminary
  report containing any findings regarding such activities not later than
  9 months after the date of the enactment of this Act, and a final report
  containing such findings not later than 24 months after the date on which
  the pilot program is initiated, which shall include any recommendations
  by the Board for legislative changes to achieve the purposes of this section.
SEC. 543. NATIONAL INTERAGENCY TASK FORCE ON MULTIFAMILY HOUSING.
  (a) PURPOSE- The purpose of this section is to establish a National
  Interagency Task Force on Multifamily Housing to develop recommendations
  for establishing a national database on multifamily housing loans.
  (b) ESTABLISHMENT OF TASK FORCE- There is established a Task Force known
  as the National Interagency Task Force on Multifamily Housing (hereafter
  in this section referred to as the `Task Force').
  (c) MEMBERSHIP OF TASK FORCE-
  (1) FEDERAL OFFICIALS- The Task Force shall be composed of--
  (A) the Secretary of Housing and Urban Development;
  (B) the Chairperson of the Federal Housing Finance Board;
  (C) the Comptroller of the Currency;
  (D) the Chairman of the Board of Governors of the Federal Reserve System;
  (E) the Director of the Office of Thrift Supervision;
  (F) the Chairperson of the Federal Deposit Insurance Corporation;
  (G) the Chairperson of the Federal National Mortgage Association; and
  (H) the Chairperson of the Federal Home Loan Mortgage Corporation,
or their designees, and the persons appointed under paragraphs (2) and (3).
  (2) APPOINTMENTS BY THE SECRETARY- The Secretary shall appoint as members
  of the Task Force--
  (A) 1 individual who is a representative of a State housing finance agency;
  (B) 1 individual who is a representative of a local housing finance agency;
  (C) 1 individual who is a representative of the building industry with
  experience in multifamily housing; and
  (D) 1 individual who is a representative of the life insurance industry
  with experience in multifamily loan performance data.
  (3) APPOINTMENTS BY THE CHAIRPERSON OF THE FHFB- The Chairman of the
  Federal Housing Finance Board shall appoint as members of the Task Force--
  (A) 1 individual who is a representative from the financial services
  industry with experience in multifamily housing underwriting;
  (B) 1 individual who is a representative from the nonprofit housing
  development sector with experience in subsidized multifamily housing
  development; and
  (C) 1 individual who is a representative from a nationally recognized
  rating agency.
  (d) ADMINISTRATION-
  (1) CHAIRPERSONS- The Task Force shall be chaired jointly by the Secretary
  and the Chairman of the Federal Housing Finance Board.
  (2) MEETINGS- The Task Force shall meet no less than 4 times, at the call
  of the Chairpersons of the Task Force.
  (3) QUORUM- A majority of the members of the Task Force shall constitute
  a quorum for the transaction of business.
  (4) VOTING- Each member of the Task Force shall be entitled to 1 vote,
  which shall be equal to the vote of every other member of the Task Force.
  (5) VACANCIES- Any vacancy on the Task Force shall not affect its powers,
  but shall be filled in the manner in which the original appointment was made.
  (6) PROHIBITION ON ADDITIONAL PAY- Members of the Task Force shall serve
  without compensation, but shall be reimbursed for travel, subsistence,
  and other necessary expenses incurred in the performance of their duties
  as members of the Task Force.
  (e) FUNCTIONS OF THE TASK FORCE-
  (1) IN GENERAL- The Task Force shall conduct a multifamily housing
  financial data project in order to improve the availability and efficiency
  of financing for multifamily rental housing. The project shall--
  (A) analyze available data regarding the performance of multifamily housing
  mortgage loans in all regions of the country;
  (B) prepare a comprehensive national database on the operation and financing
  of multifamily housing that will provide reliable information appropriate to
  meet the projected needs of lenders, investors, sponsors, property managers,
  and public officials;
  (C) identify important factors that affect the long-term financial and
  operational soundness of multifamily housing properties, including factors
  relating to project credit risk, project underwriting, interest rate risk,
  real estate market conditions, public subsidies, tax policies, borrower
  characteristics, program management standards, and government policies;
  (D) develop common definitions, standards, and procedures that will
  improve multifamily housing underwriting and accelerate the development
  of a strong, competitive, and efficient secondary market for multifamily
  housing loans; and
  (E) make available appropriate information to various organizations in
  forms that will assist in improving multifamily housing loan underwriting
  and servicing.
  (2) FINAL REPORT- Not later than 1 year following the enactment of this
  Act, the Task Force shall submit to the Congress a final report which
  shall contain the information, evaluations, and recommendations specified
  in paragraph (1).
  (f) AUTHORITY OF TASK FORCE-
  (1) RULES AND REGULATIONS- The Task Force may adopt such rules and
  regulations as may be necessary to establish its procedures and to govern
  the manner of its operations, organization and personnel.
  (2) ACCESS TO DATA- The members of the Task Force representing the
  Comptroller of the Currency, the Office of Thrift Supervision, the Board
  of Governors of the Federal Reserve System, the Federal Deposit Insurance
  Corporation, the Secretary of Housing and Urban Development, the Federal
  Housing Finance Board, the Federal National Mortgage Association, and the
  Federal Home Loan Mortgage Corporation shall make available to the Task
  Force a representative sample of multifamily housing mortgage loans in order
  for the Task Force to make its findings and recommendations, except that--
  (A) all information obtained shall be used only for the purposes authorized
  in this section;
  (B) the Task Force shall maintain the confidentiality of all such information
  obtained in the manner established for the material by the submitting entity,
  and such data shall not be subject to release under section 552 of title 5,
  United States Code;
  (C) only aggregate data shall be publicly released by the Task Force
  unless it receives the explicit permission of the mortgage originator or
  government-sponsored enterprise from which the information is obtained; and
  (D) any officer or employee of the Secretary, the Office of Thrift
  Supervision, the Board of Governors of the Federal Reserve, the Office of
  the Comptroller of the Currency, the Federal Deposit Insurance Corporation,
  or the Federal Housing Finance Board shall be subject to the penalties
  under section 1906 of title 18, United States Code, if--
  (i) by virtue of employment or official position, the officer or employee has
  possession of or access to any book, record, or information made available
  under this subsection and established as confidential under subparagraph
  (C); and
  (ii) the officer or employee discloses the material in any manner other than
  to an officer or employee of the same Federal agency employing the officer
  or employee, or other than pursuant to the exemptions under section 1906.
  (3) SAMPLE DATA- In order to ensure a representative sample of multifamily
  housing data, the Department of Housing and Urban Development, the Office
  of Thrift Supervision, the Board of Governors of the Federal Reserve
  System, the Office of the Comptroller of the Currency, and the Federal
  Deposit Insurance Corporation are authorized to request loan data from a
  representative sample of mortgage originators or the government-sponsored
  enterprises regulated by these agencies, and mortgages originated by
  housing finance agencies and life insurance companies, except that--
  (A) all information obtained shall be used only for the purposes authorized
  in this section;
  (B) the Task Force shall maintain the confidentiality of all such information
  obtained in the manner established for the material by the submitting entity,
  and such data shall not be subject to release under section 552 of title 5,
  United States Code;
  (C) only aggregate data shall be publicly released by the Task Force
  unless it receives the explicit permission of the mortgage originator or
  government-sponsored enterprise from which the information is obtained; and
  (D) any officer or employee of the Secretary, the Office of Thrift
  Supervision, the Board of Governors of the Federal Reserve, the Office of
  the Comptroller of the Currency, the Federal Deposit Insurance Corporation,
  or the Federal Housing Finance Board shall be subject to the penalties
  under section 1906 of title 18, United States Code, if--
  (i) by virtue of employment or official position, the officer or employee has
  possession of or access to any book, record, or information made available
  under this subsection and established as confidential under subparagraph
  (C); and
  (ii) the officer or employee discloses the material in any manner other than
  to an officer or employee of the same Federal agency employing the officer
  or employee, or other than pursuant to the exemptions under section 1906.
  (4) AGENCY RESOURCES- The Task Force may, with the consent of any
  Federal agency or department represented on the Task Force, utilize the
  information, services, staff and facilities of such agency or department on
  a reimbursable basis, to assist the Task Force in carrying out its duties
  under this section.
  (5) MAILS- The Task Force may use the United States mails in the same
  manner and under the same conditions as other Federal agencies.
  (6) CONTRACTING- The Task Force may, to such extent and in such amounts
  as are provided in appropriations Acts, enter into contracts with private
  firms, institutions, and individuals for the purpose of discharging its
  duties under this section.
  (7) STAFF- The Task Force may appoint and fix the compensation of such
  personnel as it deems advisable, in accordance with the provisions of title
  5, United States Code, governing appointments to the competitive service,
  and the provisions of chapter 51 and subchapter III of chapter 53 of such
  title, relating to classification of General Schedule pay rates.
  (g) INDEPENDENT EVALUATION- The Comptroller General of the United States
  shall be authorized to conduct an independent analysis of the findings
  and recommendations submitted by the Task Force to the Congress under
  this section.
  (h) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to carry out this section not to exceed $6,000,000 for fiscal year 1993 and
  $6,252,000 for fiscal year 1994. Funds appropriated under this subsection
  shall remain available until expended.
SEC. 544. DEFINITIONS.
  For purposes of this subtitle:
  (1) The term `multifamily housing' means a property consisting of more
  than 4 dwelling units.
  (2) The term `qualified housing finance agency' means any State or local
  housing finance agency that--
  (A) carries the designation of `top tier' or its equivalent, as evaluated
  by Standard and Poors or any other nationally recognized rating agency;
  (B) receives a rating of `A' for its general obligation bonds from a
  nationally recognized rating agency; or
  (C) otherwise demonstrates its capacity as a sound and experienced agency
  based on, but not limited to, its experience in financing multifamily
  housing, fund balances, administrative capabilities, investment policy,
  internal controls and financial management, portfolio quality, and State
  or local support.
  (3) The term `reinsurance agreement' means a contractual obligation under
  which the Secretary, in exchange for appropriate compensation, agrees
  to assume a specified portion of the risk of loss that a lender or other
  party has previously assumed with respect to a mortgage on a multifamily
  housing property.
  (4) The term `Secretary' means the Secretary of Housing and Urban
  Development.
TITLE VI--HOUSING FOR ELDERLY PERSONS AND PERSONS WITH DISABILITIES
Subtitle A--Supportive Housing Programs
SEC. 601. FUNDING FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND FOR PERSONS
WITH DISABILITIES.
  (a) AGGREGATE FUNDING- There are authorized to be appropriated for the
  purpose of providing assistance in accordance with section 202 of the Housing
  Act of 1959 and section 811 of the Cranston-Gonzalez National Affordable
  Housing Act, $1,309,853,000 for fiscal year 1993 and $1,364,866,826 for
  fiscal year 1994.
  (b) ALLOCATION- Of any amounts made available for assistance under the
  sections referred to in subsection (a), 70 percent of such amount shall be
  used for assistance in accordance with section 202 of the Housing Act of
  1959 and 30 percent of such amount shall be used for assistance in accordance
  with section 811 of the Cranston-Gonzalez National Affordable Housing Act.
  (c) SUPPORTIVE HOUSING FOR THE ELDERLY- Section 202(l) of the Housing Act
  of 1959 (12 U.S.C. 1701q(l)) is amended--
  (1) by striking `AUTHORIZATIONS- ' and inserting `ALLOCATION OF FUNDS- ';
  (2) in paragraph (1)--
  (A) by striking the first sentence and inserting the following new sentence:
  `Of any amounts made available for assistance under this section, such
  sums as may be necessary shall be available for funding capital advances
  in accordance with subsection (c)(1).'; and
  (B) in the second sentence, by striking `Amounts so appropriated' and
  inserting `Such amounts';
  (3) by striking paragraph (2) and inserting the following new paragraph:
  `(2) PROJECT RENTAL ASSISTANCE- Of any amounts made available for assistance
  under this section, such sums as may be necessary shall be available for
  funding project rental assistance in accordance with subsection (c)(2).'; and
  (4) in paragraph (3), by striking `under this subtitle' and inserting
  `for assistance under this section'.
  (d) SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES- Section 811(l) of
  the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(l))
  is amended--
  (1) by striking `AUTHORIZATIONS- ' and inserting `ALLOCATION OF FUNDS- ';
  (2) in paragraph (1)--
  (A) by striking the first sentence and inserting the following new sentence:
  `Of any amounts made available for assistance under subsection (b), such
  sums as may be necessary shall be available for funding capital advances
  in accordance with subsection (c)(1).'; and
  (B) in the second sentence, by striking `Amounts so appropriated' and
  inserting `Such amounts';
  (3) by striking paragraph (2) and inserting the following new paragraph:
  `(2) PROJECT RENTAL ASSISTANCE- Of any amounts made available for assistance
  under subsection (b), such sums as may be necessary shall be available
  for funding project rental assistance in accordance with subsection (c)(2).';
  (4) by redesignating paragraphs (1) and (2) (as so amended) as paragraphs
  (2) and (3), respectively; and
  (5) by inserting before paragraph (2) (as so redesignated) the following
  new paragraph:
  `(1) ALLOCATION- Of any amount made available for assistance under
  this section in any fiscal year, an amount shall be used for assistance
  under subsection (b) that is not less than the amount made available in
  appropriation Acts for such assistance in the preceding year, and the
  remainder shall be available for tenant-based assistance under subsection
  (n).'.
SEC. 602. SUPPORTIVE HOUSING FOR THE ELDERLY.
  (a) TECHNICAL CORRECTIONS- Section 202 of the Housing Act of 1959 (12
  U.S.C. 1701q), as amended by section 801(a) of the Cranston-Gonzalez
  National Affordable Housing Act, is amended--
  (1) in subsection (g)(1), by striking `and persons with disabilities'; and
  (2) in subsection (i)(1)(A), by striking `persons with disabilities'
  and inserting `elderly persons'.
  (b) REPEAL OF REQUIREMENT FOR STATE AND LOCAL CERTIFICATION OF SERVICES-
  Section 202(e) of the Housing Act of 1959 (12 U.S.C. 1701q(e)), as amended
  by section 801(a) of the Cranston-Gonzalez National Affordable Housing Act,
  is amended--
  (1) by striking paragraph (5); and
  (2) by redesignating paragraphs (6) and (7) as paragraphs (5) and (6),
  respectively.
  (c) SELECTION CRITERIA- Section 202(f)(2) of the Housing Act of 1959
  (12 U.S.C. 1701q(f)(2)) is amended by adding at the end `, taking into
  consideration the availability of public housing for the elderly and
  vacancy rates in such facilities'.
  (d) ELDER COTTAGE HOUSING-
  (1) IMPLEMENTATION- Section 806(b) of the Cranston-Gonzalez National
  Affordable Housing Act (12 U.S.C. 1701q note) is amended to read as follows:
  `(b) DEMONSTRATION PROGRAM-
  `(1) IN GENERAL- The Secretary of Housing and Urban Development shall carry
  out a program to determine the feasibility of including, as an eligible
  development cost under section 202 of the Housing Act of 1959, the cost
  of purchasing and installing elder cottage housing opportunity units that
  are small, freestanding, barrier-free, energy efficient, removable, and
  designed to be installed adjacent to existing 1- to 4-family dwellings. In
  conducting the demonstration, the Secretary shall determine whether the
  durability of such units is appropriate for making such units generally
  eligible for assistance under the programs under such sections.
  `(2) ALLOCATION- Notwithstanding any other law, the Secretary shall reserve
  from any amounts available for capital advances and project rental assistance
  under section 202 of the Housing Act of 1959, amounts sufficient in each
  of fiscal years 1993 and 1994 to provide not less than 100 units under
  the demonstration under this subsection in connection with each such
  section. Any amounts reserved under this paragraph shall be available
  only for carrying out the demonstration under this subsection and, for
  purposes of the demonstration, the cost of purchasing and installing an
  elder cottage housing opportunity unit shall be considered an eligible
  development cost under sections 202 of the Housing Act of 1959.
  `(3) REPORT- Not later than January 1, 1994, the Secretary shall submit
  a report to the Congress on the results of the demonstration under this
  subsection, which shall be based on actual experience in implementing
  this subsection.
  `(4) IMPLEMENTATION- The Secretary shall issue regulations to carry out
  the demonstration under this subsection not later than the expiration of
  the 6-month period beginning on the date of the enactment of the Housing
  and Community Development Act of 1992.'.
  (e) ACCESS TO RESIDUAL RECEIPTS- Section 202(j) of the Housing Act of
  1959 (12 U.S.C. 1701q(j)) is amended by adding at the end the following
  new paragraph:
  `(6) ACCESS TO RESIDUAL RECEIPTS- The Secretary shall authorize the owner
  of a project assisted under this section to use any residual receipts held
  for the project in excess of $500 per unit (or in excess of such other
  amount prescribed by the Secretary based on the needs of the project) for
  activities to retrofit and renovate the project described under section
  802(d)(3) of the Cranston-Gonzalez National Affordable Housing Act, to
  provide a service coordinator for the project as described in section
  802(d)(4) of such Act, or to provide supportive services (as such term is
  defined in section 802(k) of such Act) to residents of the project. Any
  owner that uses residual receipts under this paragraph shall submit to
  the Secretary a report, not less than annually, describing the uses of the
  residual receipts. In determining the amount of project rental assistance
  to be provided to a project under subsection (c)(2) of this section, the
  Secretary may take into consideration the residual receipts held for the
  project only if, and to the extent that, excess residual receipts are not
  used under this paragraph.'.
  (f) WAIVER OF OWNER DEPOSIT- Section 202(j)(3)(B) of the Housing Act of 1959
  (12 U.S.C. 1701q(j)(3)(B)) is amended by adding at the end the following
  new sentence: `The Secretary shall reduce or waive the requirement of the
  owner deposit under paragraph (1) in the case of a nonprofit applicant that
  is not affiliated with a national sponsor, as determined by the Secretary.'.
  (g) NONMETROPOLITAN ALLOCATION- Section 202(l)(4) of the Housing Act of 1959
  (12 U.S.C. 1701q(l)(3)) is amended by striking `20 percent' and inserting
  `15 percent'.
SEC. 603. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.
  Section 811(k)(6) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 8013(k)(6)) is amended--
  (1) by striking `incorporated private';
  (2) by redesignating subparagraphs (A), (B), and (C), as subparagraphs (B),
  (C), and (D), respectively; and
  (3) by inserting after `foundation--' the following new subparagraph:
  `(A) that has received, or has temporary clearance to receive, tax-exempt
  status under section 501(c)(3) of the Internal Revenue Code of 1986;'.
SEC. 604. REVISED CONGREGATE HOUSING SERVICES PROGRAM.
  (a) AUTHORIZATION OF APPROPRIATIONS- Section 802(n)(1) of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8011(n)(1))
  is amended by striking the matter preceding subparagraph (A) and inserting
  the following:
  `(1) AUTHORIZATION AND USE- There are authorized to be appropriated to
  carry out this section $21,000,000 for fiscal year 1993, and $21,882,000
  for fiscal year 1994, of which not more than--'.
  (b) SUPPLEMENTAL CONTRIBUTIONS- Section 802(i)(1)(B)(i)
  of the Cranston-Gonzalez National Affordable Housing Act (42
  U.S.C. 8011(i)(1)(B)(i)) is amended by striking `3-year' each place it
  appears and inserting `6-year'.
  (c) Regulations-
  (1) INTERIM REGULATIONS- Not later than the expiration of the 30-day period
  beginning on the date of the enactment of this Act, the Secretary of Housing
  and Urban Development and the Secretary of Agriculture shall submit to the
  Congress a copy of proposed interim regulations implementing section 802
  of the Cranston-Gonzalez National Affordable Housing Act with respect to
  eligible federally assisted housing (as such term is defined in section
  802(k) of such Act) administered by each such Secretary. Not later than
  the expiration of the 45-day period beginning on the date of the enactment
  of this Act, but not before the expiration of the 15-day period beginning
  upon the submission of the proposed interim regulations to the Congress,
  each such Secretary shall publish interim regulations implementing such
  section 802, which shall take effect upon publication.
  (2) FINAL REGULATIONS- Not later than the expiration of the 90-day period
  beginning upon the publication of interim regulations under paragraph (1),
  each such Secretary shall issue final regulations implementing section
  802 of the Cranston-Gonzalez National Affordable Housing Act after notice
  and opportunity for public comment regarding the interim regulations,
  pursuant to the provisions of section 553 of title 5, United States Code
  (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section). The
  duration of the period for public comment under such section 553 shall be not
  less than 60 days, and the final regulations shall take effect upon issuance.
  (3) FAILURE UNDER 1990 ACT- This subsection may not be construed to
  authorize any failure to comply with the requirements of section 802(m)
  of the Cranston-Gonzalez National Affordable Housing Act.
SEC. 605. HOPE FOR ELDERLY INDEPENDENCE.
  (a) SECTION 8 ASSISTANCE- Section 803(j) of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 8012(j)) is amended to read as follows:
  `(j) SECTION 8 FUNDING- The budget authority available under section 5(c)
  of the United States Housing Act of 1937 for assistance under sections
  8(b) and 8(o) of such Act is authorized to be increased by $38,288,000
  on or after October 1, 1992, and by $39,896,096 on or after October 1,
  1993. The amounts made available under this subsection shall be used only
  in connection with the demonstration under this section.
  (b) SUPPORTIVE SERVICES AUTHORIZATION- Section 803(k) of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8012(k))
  is amended to read as follows:
  `(k) FUNDING FOR SERVICES- There are authorized to be appropriated for the
  Secretary to carry out the responsibilities for supportive services under
  the demonstrations under this section $10,000,000 to become available
  in fiscal year 1993, and $10,420,000 to become available in fiscal year
  1994. Any such amounts appropriated under this subsection shall remain
  available until expended.'.
  (c) DEMONSTRATION PERIOD- Section 803 of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 8012) is amended--
  (1) in subsection (a), by striking `beginning on the date of the enactment
  of this Act' and inserting `determined by the Secretary'; and
  (2) by striking paragraph (1) of subsection (g) and inserting the following
  new paragraph:
  `(1) The term `demonstration period' means the 5-year period referred to
  in subsection (a).'.
SEC. 606. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.
  (a) AMENDMENT OF CRANSTON-GONZALEZ NATIONAL HOUSING ACT- Whenever in this
  section an amendment is expressed in terms of an amendment to a section or
  other provision, the reference shall be considered to be made to a section
  or other provision of the Cranston-Gonzalez National Affordable Housing Act.
  (b) AUTHORIZATION OF APPROPRIATIONS- Section 863 (42 U.S.C. 12912) is
  amended to read as follows:
`SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated to carry out this subtitle
  $150,000,000 for fiscal year 1993 and $156,300,000 for fiscal year 1994.'.
  (c) DEFINITIONS- Section 853 (42 U.S.C. 12902) is amended--
  (1) in paragraph (2), by striking `sponsor receiving assistance from a
  grantee' and inserting `organization eligible to receive assistance under
  this subtitle';
  (2) in paragraph (5), by striking `metropolitan area' and inserting
  `metropolitan statistical area'; and
  (3) by adding at the end the following new paragraphs:
  `(11) The term `city' has the meaning given the term in section 102(a)
  of the Housing and Community Development Act of 1974.
  `(12) The term `eligible person' means a person with acquired
  immunodeficiency syndrome or a related disease and the family of such person.
  `(13) The term `nonprofit organization' means any nonprofit organization
  (including a State or locally chartered, nonprofit organization) that--
  `(A) is organized under State or local laws;
  `(B) has no part of its net earnings inuring to the benefit of any member,
  founder, contributor, or individual;
  `(C) complies with standards of financial accountability acceptable to
  the Secretary; and
  `(D) has among its purposes significant activities related to providing
  services or housing to persons with acquired immunodeficiency syndrome or
  related diseases.
  `(14) The term `project sponsor' means a nonprofit organization or a housing
  agency of a State or unit of general local government that contracts with
  a grantee to receive assistance under this subtitle.'.
  (d) GRANT ELIGIBILITY AND ALLOCATION- Section 854 (42 U.S.C. 12903)
  is amended--
  (1) in subsection (a), by striking `and units of general local government'
  and  inserting `, units of general local government, and nonprofit
  organizations';
  (2) by striking subsection (b) and inserting the following new subsection:
  `(b) IMPLEMENTATION OF ELIGIBLE ACTIVITIES- A grantee shall carry out
  eligible activities under section 855 through project sponsors. Any grantee
  that is a State that enters into a contract with a nonprofit organization
  to carry out eligible activities in a locality shall obtain the approval
  of the unit of general local government for the locality before entering
  into the contract.';
  (3) by striking paragraph (1) of subsection (c) and inserting the following
  new paragraph:
  `(1) FORMULA ALLOCATION- The Secretary shall allocate 90 percent of the
  amounts approved in appropriation Acts under section 863 among States
  and cities whose most recent comprehensive housing affordability strategy
  (or abbreviated strategy) has been approved by the Secretary under section
  105 of this Act. Such amounts shall be allocated as follows:
  `(A) 75 percent among--
  `(i) cities that are the most populous unit of general local government in
  a metropolitan statistical area having a population greater than 500,000
  and more than 1,500 cases of acquired immunodeficiency syndrome; and
  `(ii) States with more than 1,500 cases of acquired immunodeficiency syndrome
  outside of metropolitan statistical areas described in clause (i); and
  `(B) 25 percent among cities that (i) are the most populous unit of
  general local government in a metropolitan statistical area having a
  population greater than 500,000 and more than 1,500 cases of acquired
  immunodeficiency syndrome, and (ii) have a higher than average per capita
  incidence of acquired immunodeficiency syndrome.
A single city may receive assistance allocated under subparagraph (A) and
subparagraph (B). For purposes of allocating amounts under this paragraph for
any fiscal year, the number of cases of acquired immunodeficiency syndrome
shall be the number of such cases reported to and confirmed by the Director
of the Centers for Disease Control of the Public Health Service as of March
31 of the fiscal year immediately preceding the fiscal year for which the
amounts are appropriated and to be allocated.';
  (4) in subsection (c)(3)--
  (A) by striking the paragraph heading and inserting `NONFORMULA ALLOCATION-
  '; and
  (B) by striking subparagraph (A) and inserting the following new
  subparagraph:
  `(A) IN GENERAL- The Secretary shall allocate 10 percent of the amounts
  appropriated under section 863 among--
  `(i) States and units of general local government that do not qualify for
  allocation of amounts under paragraph (1); and
  `(ii) States, units of general local government, and nonprofit organizations,
  to fund special projects of national significance.';
  (5) in the first sentence of subsection (d), by striking `approvable
  applications submitted by eligible applicants' and inserting `applications
  submitted by applicants and approved by the Secretary';
  (6) in subsection (e), by striking `requirements of subsection (b)' and
  inserting `other requirements of this section'; and
  (7) by adding at the end the following new subsection:
  `(f) ADDITIONAL REQUIREMENT FOR CITY FORMULA GRANTEES- In addition to the
  other requirements of this section, to be eligible for a grant pursuant to
  subsection (c)(1), a city shall provide such assurances as the Secretary may
  require that any grant amounts received will be allocated among eligible
  activities in a manner that addresses the needs within the metropolitan
  statistical area in which the city is located, including areas not within the
  jurisdiction of the city. Any such city shall coordinate with other units
  of general local government located within the metropolitan statistical
  area to provide such assurances and comply with the assurances.'.
  (e) LIMITATION ON SPENDING FOR OTHER ACTIVITIES- Section 855(6) (42
  U.S.C. 12904(6)) is amended by inserting before the period at the end the
  following: `, except that activities developed under this paragraph may
  be assisted only with amounts provided under section 854(c)(3)'.
  (f) FEES AND LIMITATION ON USE OF GRANT AMOUNTS FOR ADMINISTRATIVE EXPENSES-
  Section 856 (42 U.S.C. 12905) is amended--
  (1) by striking subsection (d) and inserting the following new subsection:
  `(d) PROHIBITION OF FEES- The recipient shall agree that no fee will be
  charged to any eligible person for any housing or services provided with
  amounts from a grant under this subtitle.'; and
  (2) by adding at the end the following new subsection:
  `(g) ADMINISTRATIVE EXPENSES-
  `(1) GRANTEES- Notwithstanding any other provision of this subtitle,
  each grantee may use not more than 3 percent of the grant amount for
  administrative costs relating to administering grant amounts and allocating
  such amounts to project sponsors.
  `(2) PROJECT SPONSORS- Notwithstanding any other provision of this subtitle,
  each project sponsor receiving amounts from grants made under this title
  may use not more than 7 percent of the amounts received for administrative
  costs relating to carrying out eligible activities under section 855,
  including the costs of staff necessary to carry out eligible activities.'.
  (g) SHORT-TERM SUPPORTED HOUSING AND SERVICES- Section 858 (42 U.S.C. 12907)
  is amended--
  (1) in subsection (a)--
  (A) in paragraph (3), by inserting before the period at the end the
  following: `(except that health services under this paragraph may only
  be provided to individuals with acquired immunodeficiency syndrome or
  related diseases), and providing technical assistance to eligible persons
  to provide assistance in gaining access to benefits and services for
  homeless individuals provided by the Federal Government and State and
  local governments';
  (B) by striking paragraphs (4) and (5); and
  (C) by adding at the end the following new paragraphs:
  `(4) OPERATION- Providing for the operation of short-term supported
  housing provided under this section, including the costs of security,
  operation insurance, utilities, furnishings, equipment, supplies, and
  other incidental costs.
  `(5) ADMINISTRATION- Providing staff to carry out the program under this
  section (subject to the provisions of section 856(g)).'; and
  (2) in subsection (b)--
  (A) in paragraph (2)--
  (i) by striking subparagraph (B);
  (ii) in subparagraph (C), by striking `limitations under subparagraphs
  (A) and (B)' and inserting `limitation under subparagraph (A)'; and
  (iii) by redesignating subparagraph (C) (as so amended) as subparagraph
  (B); and
  (B) in paragraph (3), by adding at the end the following new subparagraph:
  `(C) WAIVER- Notwithstanding subparagraphs (A) and (B), the Secretary may
  waive the applicability of the requirements under such subparagraphs with
  respect to any individual for which the project sponsor has made a good
  faith effort to acquire permanent housing (in accordance with paragraph
  (4)) and has been unable to do so.'.
  (h) RENTAL ASSISTANCE-
  (1) IN GENERAL- Section 859 (42 U.S.C. 12908) is amended--
  (A) by striking the section heading and inserting the following new
  section heading:
`SEC. 859. RENTAL ASSISTANCE.';
  (B) in the first sentence of subsection (a)(1), by striking `short-term'; and
  (C) by adding at the end the following new subsection:
  `(c) ADMINISTRATIVE COSTS- A project sponsor providing rental assistance
  under this section may use amounts from any grant received under this
  section for administrative expenses involved in providing such assistance,
  subject to the provisions of 856(g)(2).'.
  (2) CONFORMING AMENDMENT- Section 855(3) (42 U.S.C. 12904(3)) is amended
  by striking `short-term'.
  (i) COMMUNITY RESIDENCES AND SERVICES- Section 861(c) (42 U.S.C. 12910(c))
  is amended--
  (1) in paragraph (1)(C), by inserting before the period at the end the
  following: `, and expenses relating to community outreach and educational
  activities regarding acquired immunodeficiency syndrome and related diseases
  provided for individuals residing in proximity of eligible persons assisted
  under this subtitle'; and
  (2) by striking paragraph (3) and inserting the following new paragraph:
  `(3) ADMINISTRATIVE EXPENSES- For administrative expenses related to the
  planning and carrying out activities under this section (subject to the
  provisions of section 856(g)).'.
  (j) ELIGIBILITY OF FAMILIES-
  (1) Section 852 (42 U.S.C. 12901) is amended by inserting `and families
  of such persons' before the period at the end.
  (2) Section 854(c)(3) (42 U.S.C. 12903(c)(3)) is amended by striking
  `persons with acquired immunodeficiency syndrome' and inserting `eligible
  persons' each place it appears.
  (3) Section 855 (42 U.S.C. 12904) is amended--
  (A) in the matter preceding paragraph (1), by striking `such persons with
  acquired immunodeficiency syndrome' and inserting `eligible persons'; and
  (B) in paragraph (5), by striking `with acquired immunodeficiency syndrome'.
  (4) Section 856(c) (42 U.S.C. 12905(c)) is amended by striking `such
  individuals' and inserting `such eligible persons'.
  (5) Section 858(a)(3) (42 U.S.C. 12907(a)(3)) is amended by striking
  `individuals' and inserting `eligible persons'.
  (6) Section 859(b)(1) (42 U.S.C. 12908(b)(1)) is amended by striking
  `individuals' and inserting `eligible persons'.
  (7) Sections 859(b)(2) and 860(b)(2) (42 U.S.C. 12908(b), 12909(b)(2))
  are amended by inserting `with acquired immunodeficiency syndrome or
  related diseases' after `any individual' each place it appears.
  (8) Section 861(a) (42 U.S.C. 12910(a)) is amended by striking `persons
  with acquired immunodeficiency syndrome or related diseases' and inserting
  `eligible persons'.
  (9) Section 861(b)(1)(A)(iv) (42 U.S.C. 12910(b)(1)(A)(iv)) is amended by
  striking `such individuals' and inserting `such eligible persons'.
  (10) Section 861(d)(1) (42 U.S.C. 12910(d)(1)) is amended--
  (A) in subparagraph (A), by striking `individuals' and inserting `eligible
  persons'; and
  (B) in subparagraph (D), by inserting `with acquired immunodeficiency
  syndrome or related diseases' after `any individual'.
  (11) Subtitle D of title VIII of the Cranston-Gonzalez National Affordable
  Housing Act (42 U.S.C. 12901 et seq.) is amended by striking `individuals
  with acquired immunodeficiency syndrome or related diseases' each place
  it appears in the following provisions and inserting `eligible persons':
  (A) Section 856(c).
  (B) Section 857.
  (C) Section 858--
  (i) in subsection (a), in the matter preceding paragraph (1); and
  (ii) in subsection (b)(1)(A);
  (D) Section 859(a)(1).
  (E) Section 861--
  (i) in subsection (b); and
  (ii) in subsection (d).
  (k) REGULATIONS-
  (1) INTERIM REGULATIONS- Not later than the expiration of the 30-day period
  beginning on the date of the enactment of this Act, the Secretary of Housing
  and Urban Development shall submit to the Congress a copy of proposed interim
  regulations implementing subtitle D of title VIII of the Cranston-Gonzalez
  National Affordable Housing Act (as amended by this section). Not later than
  the expiration of the 45-day period beginning on the date of the enactment
  of this Act, but not before the expiration of the 15-day period beginning
  upon the submission of the proposed interim regulations to the Congress,
  the Secretary shall publish interim regulations implementing such subtitle
  (as amended), which shall take effect upon publication.
  (2) FINAL REGULATIONS- Not later than the expiration of the 90-day period
  beginning upon the publication of interim regulations under paragraph
  (1), the Secretary shall issue final regulations implementing subtitle D
  of title VIII of the Cranston-Gonzalez National Affordable Housing Act
  (as amended by this section) after notice and opportunity for public
  comment regarding the interim regulations, pursuant to the provisions of
  section 553 of title 5, United States Code (notwithstanding subsections
  (a)(2), (b)(B), and (d)(3) of such section). The duration of the period
  for public comment under such section 553 shall be not less than 60 days,
  and the final regulations shall take effect upon issuance.
Subtitle B--Authority for Public Housing Agencies To Provide Designated
Public Housing and Assistance for Disabled Families
SEC. 621. DEFINITIONS.
  Paragraph 3 of section 3(b) of the United States Housing Act of 1937
  (42 U.S.C. 1437a(b)(3)) is amended to read as follows:
  `(3) PERSONS AND FAMILIES-
  `(A) SINGLE PERSONS- The term `families' includes families consisting of a
  single person in the case of (i) an elderly person, (ii) a disabled person,
  (iii) a displaced person, (iv) the remaining member of a tenant family,
  and (v) any other single persons. In no event may any single person under
  clause (v) of the first sentence be provided a housing unit assisted under
  this Act of 2 or more bedrooms. In determining priority for admission to
  housing under this Act, the Secretary shall give preference to single
  persons who are elderly, disabled, or displaced persons before single
  persons who are eligible under clause (v) of the first sentence.
  `(B) FAMILIES- The term `families' means families with children, in the
  cases of elderly families, near-elderly families, and disabled families,
  means families whose heads (or their spouses), or whose sole members, are
  elderly, near-elderly, or persons with disabilities, respectively. The
  term includes, in the cases of elderly families, near-elderly families,
  and disabled families, 2 or more elderly persons, near-elderly persons,
  or persons with disabilities living together, and 1 or more such persons
  living with 1 or more persons determined under the regulations of the
  Secretary to be essential to their care or well-being.
  `(C) ABSENCE OF CHILDREN- The temporary absence of a child from the home
  due to placement in foster care shall not be considered in determining
  family composition and family size.
  `(D) ELDERLY PERSON- The term `elderly person' means a person who is at
  least 62 years of age.
  `(E) PERSON WITH DISABILITIES- The term `person with disabilities' means
  a person who--
  `(i) has a disability as defined in section 223 of the Social Security Act,
  `(ii) is determined, pursuant to regulations issued by the Secretary, to
  have a physical, mental, or emotional impairment which (I) is expected to
  be of long-continued and indefinite duration, (II) substantially impedes
  his or her ability to live independently, and (III) is of such a nature
  that such ability could be improved by more suitable housing conditions, or
  `(iii) has a developmental disability as defined in section 102 of the
  Developmental Disabilities Assistance and Bill of Rights Act.
Such term shall not exclude persons who have the disease of acquired
immunodeficiency syndrome or any conditions arising from the etiologic agent
for acquired immunodeficiency syndrome.
  `(F) DISPLACED PERSON- The term `displaced person' means a person displaced
  by governmental action, or a person whose dwelling has been extensively
  damaged or destroyed as a result of a disaster declared or otherwise
  formally recognized pursuant to Federal disaster relief laws.
  `(G) NEAR-ELDERLY PERSON- The term `near-elderly person' means a person
  who is at least 50 years of age but below the age of 62.'.
SEC. 622. AUTHORITY.
  (a) IN GENERAL- Section 7 of the United States Housing Act of 1937 (42
  U.S.C. 1437e) is amended to read as follows:
`DESIGNATED HOUSING
  `SEC. 7. (a) AUTHORITY TO PROVIDE DESIGNATED HOUSING-
  `(1) IN GENERAL- Notwithstanding any other provision of law, a public
  housing agency whose allocation plan under subsection (f) (and any biannual
  update) has been approved by the Secretary may, to the extent provided
  in the allocation plan, provide public housing projects (or portions
  of projects) designated for occupancy by (A) only elderly families, (B)
  only disabled families (subject to the provisions of subsection (e)), or
  (C) elderly and disabled families.
  `(2) PRIORITY FOR OCCUPANCY- In determining priority for admission to
  public housing projects (or portions of projects) that are designated
  for occupancy as provided in paragraph (1), the public housing agency may
  make units in such projects (or portions) available only to the types of
  families for whom the project is designated. Among such types of families,
  preference for occupancy in such projects (or portions) shall be given
  according to the preferences for occupancy under section 6(c)(4)(A).
  `(3) ELIGIBILITY OF NEAR-ELDERLY FAMILIES- If a public housing agency
  determines (in accordance with regulations established by the Secretary)
  that there are insufficient numbers of elderly families to fill all the
  units in a project (or portion of a project) designated under paragraph
  (1) for occupancy by only elderly families, the agency may (pursuant to
  the approved allocation plan under subsection (f) for the agency) provide
  that near-elderly families who qualify for preferences for occupancy under
  section 6(c)(4)(A) may occupy dwelling units in the project (or portion).
  `(4) VACANCY- Notwithstanding the authority under paragraphs (1) and
  (2) to designate public housing projects (or portions of projects) for
  occupancy by only certain types of families, a public housing agency shall
  make any dwelling unit that is ready for occupancy in such a project (or
  portion of a project) that has been vacant for more than 60 consecutive
  days generally available for occupancy (subject to the requirements of
  this title) without regard to such designation.
  `(b) AVAILABILITY OF HOUSING-
  `(1) TENANT CHOICE- The decision of any disabled family not to occupy
  or accept occupancy in an appropriate type of project or assistance made
  available to the family under this title shall not adversely affect the
  family with respect to a public housing agency making available occupancy in
  other appropriate projects in public housing or assistance under this title.
  `(2) DISCRIMINATORY SELECTION- Paragraph (1) shall not apply to any family
  who decides not to occupy or accept an appropriate dwelling unit in public
  housing or to accept assistance under this Act on the basis of the race,
  color, religion, sex, disability, familial status, or national origin of
  occupants of housing or the surrounding area.
  `(3) APPROPRIATENESS OF DWELLING UNITS- This section may not be construed
  to require a public housing agency to offer occupancy in any dwelling unit
  assisted under this Act to any family who is not of appropriate family
  size for the dwelling unit.
  `(c) PROHIBITION OF EVICTIONS- Any tenant who is lawfully residing in a
  dwelling unit in the project may not be evicted or otherwise required to
  vacate such unit because of the designation of the project (or portion of
  a project) or because of any action taken by the Secretary of Housing and
  Urban Development or any public housing agency pursuant to this section.
  `(d) ACCOMMODATION OF HOUSING AND SERVICE NEEDS- In designing, developing,
  otherwise acquiring and operating, designating, and providing housing and
  assistance under this title, each public housing agency shall meet, to the
  extent practicable, the housing and service needs of eligible families
  applying for assistance under this title, as provided in any allocation
  plan of the agency approved under subsection (f). To meet such needs,
  public housing agencies may, wherever practicable and in accordance with
  any allocation plan of the agency--
  `(1) provide housing in which supportive services are provided, facilitated,
  or coordinated, mixed housing, shared housing, family housing, group homes,
  congregate housing, and other housing as the public housing agency considers
  appropriate;
  `(2) carry out major reconstruction of obsolete public housing projects
  and reconfiguration of public housing dwelling units; and
  `(3) provide tenant-based assistance under section 811(b)(1).
  `(e) APPLICATION FOR DESIGNATED HOUSING FOR DISABLED FAMILIES-
  `(1) REQUIREMENT- A project (or portion of a project) may be designated
  under subsection (a)(1) for occupancy by only disabled families only if the
  public housing agency administering the project complies with the other
  requirements of this section and the Secretary approves an application
  under this subsection for such designation. The Secretary shall establish
  the form and procedures for submission and approval of applications under
  this subsection.
  `(2) CONTENTS- An application under this subsection shall contain--
  `(i) a description of the projects (or portions of projects) to be designated
  (which may include group homes, independent living facilities, units in
  multifamily housing developments, condominium housing, cooperative housing,
  and scattered site housing);
  `(ii) a supportive service plan--
  `(I) describing the needs of persons with disabilities that the housing
  is expected to serve;
  `(II) providing for delivery of supportive services appropriate to meet
  the individual needs of persons with disabilities occupying the housing;
  `(III) describing the experience of the applicant (or service providers)
  in providing such services;
  `(IV) describing the manner in which such services will be provided to
  such persons; and
  `(V) identifying any State, local, other Federal, or other funds available
  for providing such services; and
  `(iii) any other information or certification that the Secretary considers
  appropriate.
  `(3) APPROVAL- The Secretary may approve an application under this subsection
  only if the Secretary determines that--
  `(i) the persons with disabilities occupying the housing will receive
  supportive services based on their individual needs;
  `(ii) the applicant (or service providers) have sufficient experience in
  providing supportive services;
  `(iii) residential supervision will be provided in the housing sufficient
  to facilitate the provision of supportive services; and
  `(iv) the supportive services are adequately designed to meet the special
  needs of the tenants.
  `(4) SUPPORTIVE SERVICES- For purposes of this subsection, the term
  `supportive services' means services designed to meet the special needs
  of tenants, and may include meal services, health-related services,
  mental health services, services for nonmedical counseling, meals,
  transportation, personal care, bathing, toileting, housekeeping, chore
  assistance, safety, group and socialization activities, assistance with
  medications (in accordance with any applicable State laws), case management,
  personal emergency response, and other appropriate services.
  `(f) ALLOCATION PLANS-
  `(1) REQUIREMENT- A public housing agency may not designate a project
  (or portion of a project) for occupancy under subsection (a)(1) unless
  the agency submits an allocation plan under this subsection and the plan
  is approved under paragraph (4) of this subsection.
  `(2) CONTENTS- An allocation plan submitted under this subsection by a
  public housing agency shall include--
  `(A) a description of the projects (or portions of projects) to be designated
  and the types of tenants occupying such projects (or portions);
  `(B) a description of the estimated pool of applicants for such housing,
  based on the waiting lists for such housing, and any information collected
  in the comprehensive housing affordability strategy under section 105 of
  the Cranston-Gonzalez National Affordable Housing Act for the jurisdiction
  within which the area served by the public housing agency is located;
  `(C) a statement identifying the projects or portions of projects (including
  the buildings or floors) to be designated for occupancy under subsection
  (a)(1) for only certain types of families, the types of families who will
  be eligible for occupancy in such projects (or portions), and the reasons
  for the designation;
  `(D) documentation of the number of units in the projects (or portions)
  identified under subparagraph (C) which became vacant and available for
  occupancy during the preceding year;
  `(E) an estimate of the number of units in the projects (or portions)
  identified under subparagraph (C) that will become vacant and available
  for occupancy during the ensuing 2-year period;
  `(F) a description of the occupancy policies and procedures, including
  procedures for maintaining waiting lists for eligible applicants who are
  elderly families or disabled families for occupancy in units in projects
  administered by the agency sufficient to document the number and duration of
  instances in which housing assistance for eligible applicants will be denied
  or delayed by the agency because of a lack of appropriately designated units;
  `(G) a plan for securing sufficient additional resources that the agency
  owns, controls, or has received preliminary notification that it will
  obtain, or for which the agency plans to apply, that will be sufficient
  to provide assistance to not less than the number of nonelderly disabled
  families that would have been housed if occupancy in such units were not
  restricted pursuant to this section; and
  `(H) any comments of agencies, organizations, or persons with whom the
  public housing agency consults under paragraph (3).
  `(3) DEVELOPMENT- In preparing the initial allocation plan, or updates of a
  plan under paragraph (5), for submission under this subsection, a public
  housing agency shall consult with the State or unit of general local
  government in whose jurisdiction the area served by the public housing
  agency is located, public and private service providers, advocates for
  the interest of eligible elderly families, disabled families, and families
  with children, and other interested parties.
  `(4) APPROVAL-
  `(A) CRITERIA- The Secretary shall approve an allocation plan, or an updated
  plan, submitted under this subsection if the Secretary determines that,
  based on the plan and comments submitted pursuant to paragraph (2)(H)--
  `(i) the information contained in the plan is complete and accurate and
  the projections are reasonable;
  `(ii) implementation of the plan will not result in excessive vacancy rates
  in projects (or portions of projects) identified in paragraph (2)(C); and
  `(iii) the plan under paragraph (2)(G) can reasonably be achieved.
  `(B) NOTIFICATION-
  `(i) IN GENERAL- The Secretary shall notify each public housing agency
  submitting an allocation plan under this subsection in writing of approval
  or disapproval of the plan.
  `(ii) TIMING- A plan shall be considered to be approved if the Secretary
  does not notify the public housing agency of approval or disapproval of
  the initial or revised plan within (I) 90 days after the submission of
  any plan that contains comments pursuant to paragraph (2)(H), or (II)
  45 days for any other plan.
  `(iii) RESUBMISSION- If the Secretary disapproves the plan, the Secretary
  shall, for a period of not less than 45 days following the date of
  disapproval, permit amendments to, or resubmission of, the plan.
  `(C) RULE OF CONSTRUCTION- The approval of an allocation plan or updated
  plan under this subsection may not be construed to constitute approval of
  any request for assistance for major reconstruction of obsolete projects,
  assistance for development or acquisition of public housing, or assistance
  under section 811(b)(1) of the Cranston-Gonzalez National Affordable
  Housing Act, that are contained in the plan pursuant to subparagraph (H).
  `(5) BIANNUAL UPDATE-
  `(A) IN GENERAL- Each public housing agency that owns or operates a project
  (or portion of a project) that is designated for occupancy under subsection
  (a)(1) shall update the plan of the agency under this subsection not less
  than once every 2 years, as the Secretary shall provide. The Secretary
  shall notify each public housing agency submitting an updated plan under
  this paragraph of approval or disapproval of the updated plan as required
  under paragraph (4)(B), and the provisions of such paragraph shall apply
  to updated plans under this paragraph.
  `(B) CONTENTS- The updated plan shall include--
  `(i) a review of the data and projections contained in the allocation plan
  and the most recent update submitted under this subsection;
  `(ii) an assessment of the accuracy of the projections contained in such
  plan and update;
  `(iii) a statement of the number of times a vacancy was filled pursuant
  to subsection (a)(4);
  `(iv) a statement of the number of times an application for housing
  assistance by an eligible applicant was denied or delayed because of a
  lack of appropriately designated units; and
  `(v) a plan for adjusting the allocation, if necessary, in accordance with
  the needs identified pursuant to this subparagraph.
  `(C) STANDARDS FOR APPROVAL- The Secretary shall establish standards for
  preparation, submission, and approval of updated plans.
  `(g) PROHIBITION OF COERCION- No elderly or disabled family residing in
  any public housing project may be required to accept services.'.
  (b) OCCUPANCY PREFERENCES- The matter preceding clause (i) in
  section 6(c)(4)(A) of the United States Housing Act of 1937 (42
  U.S.C. 1437d(c)(4)(A)) is amended by striking `specifically designated
  for elderly families' and inserting `designated for occupancy pursuant to
  section 7(a)'.
  (c) DEFINITIONS- Section 3(c) of the United States Housing Act of 1937
  (42 U.S.C. 1437a(c)) is amended by inserting after `project.' the following
  new paragraphs:
  `(4) The term `congregate housing' means low-rent housing with which there
  is connected a central dining facility where wholesome and economical meals
  can be served to occupants. Expenditures incurred by a public housing
  agency in the operation of a central dining facility in connection with
  congregate housing (other than the cost of providing food and service)
  shall be considered a cost of operation of the project.
  `(5) The terms `group home' and `independent living facility' have the
  meanings given such terms in section 811(k) of the Cranston-Gonzalez
  National Affordable Housing Act.
SEC. 623. TENANT-BASED ASSISTANCE FOR PERSONS WITH DISABILITIES.
  (a) IN GENERAL- Section 811 of the Cranston-Gonzalez National Affordable
  Housing Act (42 U.S.C. 8013) is amended--
  (1) by amending the section heading to read as follows:
`SEC. 811. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.';
  (2) in subsection (b)--
  (A) in the matter following paragraph (2)--
  (i) by moving such matter 2 ems to the right; and
  (ii) by striking `Such assistance' and inserting `assistance under this
  paragraph';
  (B) by striking the subsection heading and all that follows through the
  end of paragraph (2) and inserting the following:
  `(b) AUTHORITY TO PROVIDE ASSISTANCE- The Secretary is authorized--
  `(1) to provide tenant-based rental assistance to eligible persons with
  disabilities, in accordance with subsection (d)(4); and
  `(2) to provide assistance to private, nonprofit organizations to expand
  the supply of supportive housing for persons with disabilities, which
  shall be provided as--
  `(A) capital advances in accordance with subsection (d)(1), and
  `(B) contracts for project rental assistance in accordance with subsection
  (d)(2);';
  (3) in subsection (d)--
  (A) in paragraphs (1) and (3), by striking `this section' and inserting
  `subsection (b)(2)'; and
  (B) by adding at the end the following new paragraph--
  `(4) TENANT-BASED RENTAL ASSISTANCE- Tenant-based rental assistance provided
  under subsection (b)(1) may be provided only through a public housing agency
  that has submitted, and had approved, an allocation plan under section 7(f)
  of the United States Housing Act of 1937, and a public housing agency shall
  be eligible to apply under this section only for the purposes of providing
  such assistance. Such assistance shall be made available to eligible persons
  with disabilities and administered under the same rules that govern rental
  assistance made available under section 8 of the United States Housing Act
  of 1937. In determining the amount of assistance provided under subsection
  (b)(1) for a public housing agency, the Secretary shall consider the needs
  of the agency as described in the allocation plan.';
  (4) in subsection (e)(1), by striking `this section' and inserting
  `subsection (b)(2)';
  (5) in subsection (f), in the first and second sentences, by striking
  `this section' and inserting `subsection (b)(2)'; and
  (6) in subsection (g), by striking `this section' and inserting `subsection
  (b)(2)'.
  (b) SECTION 8 ASSISTANCE- Section 8 of the United States Housing Act
  of 1937 (42 U.S.C. 1437f), is amended by inserting after subsection (h)
  the following new subsection:
  `(i) The Secretary may not consider the receipt by a public housing agency
  of assistance under section 811(b)(1) of the Cranston-Gonzalez National
  Affordable Housing Act, or the amount received, in approving assistance for
  the agency under this section or determining the amount of such assistance
  to be provided.'.
SEC. 624. DEVELOPMENT AND RECONSTRUCTION OF HOUSING FOR DISABLED FAMILIES.
  (a) SET-ASIDE OF MAJOR RECONSTRUCTION FUNDS FOR RECONFIGURATION OF
  PROJECTS- Section 5(j)(2) of the United States Housing Act of 1937 (42
  U.S.C. 1437c(j)(2)), as amended by the preceding provisions of this Act,
  is further amended by adding at the end the following new subparagraph:
  `(G)(i) In fiscal years 1993 and 1994, the Secretary shall commit for use
  under clause (ii) not less than 5 percent of any amounts reserved under
  subparagraph (A) for each such fiscal year.
  `(ii) The amounts referred to in clause (i) shall be available to public
  housing agencies only for use for projects (or portions of projects)
  designated for occupancy under section 7(a)(1) and (e) by disabled families.
  `(iii) In allocating amounts reserved under this subparagraph among
  public housing agencies, the Secretary shall consider the need for any
  such amounts as identified in the allocation plans submitted by agencies
  under section 7(f).'.
  (b) SET-ASIDE OF NEW CONSTRUCTION FUNDS FOR HOUSING DESIGNED FOR DISABLED
  FAMILIES AND SINGLE PERSONS- Section 5(j) of the United States Housing Act
  of 1937 (42 U.S.C. 1437c(j)) is amended by adding at the end the following
  new paragraph:
  `(3)(A) In fiscal years 1993 and 1994, the Secretary shall reserve for use
  under subparagraph (B) not less than 5 percent of any amounts approved in
  appropriation Acts for each such fiscal year for public housing grants
  under subsection (a)(2) that are not designated under such Acts for use
  under paragraph (2) of this subsection for the substantial redesign,
  reconstruction, or redevelopment of existing public housing projects,
  buildings, or units.
  `(B) Any amount reserved under subparagraph (A) shall be available only
  to public housing agencies that have designated projects (or portions of
  projects) for occupancy under section 7(a)(1) for use only for the costs
  of development or acquisition of public housing projects or buildings
  designated for occupancy under section 7(a)(1) and (e) by disabled
  families. A building so assisted may not contain more than 25 dwelling
  units, except that the Secretary may (in the discretion of the Secretary)
  waive such limitation for a building.
  `(C) The Secretary shall carry out a competition for budget authority
  reserved under subparagraph (A) among eligible public housing agencies and
  shall allocate such budget authority to public housing agencies pursuant to
  the competition, based on (i) the need of the agency for such assistance
  (taking into consideration the allocation plans submitted under section
  7(f) by agencies), and (ii) the extent to which the public housing projects
  and buildings to be developed or assisted meet the requirements of section
  7(e).'.
  (c) REQUIREMENT FOR USE OF NEW CONSTRUCTION FUNDS FOR PROJECTS DESIGNATED
  FOR ELDERLY FAMILIES- Section 5(j)(1) of the United States Housing Act of
  1937 (42 U.S.C. 1437c(j)(1)) is amended--
  (1) in subparagraph (D), by striking `and' at the end;
  (2) by redesignating subparagraph (E) as subparagraph (F); and
  (3) by adding at the end the following new subparagraph:
  `(E) in the case of an application for development of projects (or portions
  of projects) designated under section 7(a)(1) for occupancy for elderly
  families, only if the agency certifies to the Secretary that the use of
  such assistance will assist in expanding the housing available for eligible
  persons with disabilities identified in the allocation plan for the agency
  submitted under section 7(f); and'.
SEC. 625. CONFORMING AMENDMENTS.
  (a) UNITED STATES HOUSING ACT OF 1937- The United States Housing Act of 1937
  (42 U.S.C. 1437 et seq.) is amended--
  (1) in section 3(b)(5)(B), by inserting `or disabled' after `elderly';
  (2) in the last sentence of section 6(a), by striking `the elderly' and
  inserting `elderly or disabled families';
  (3) in section 14(i)(1)(D)(ii), by striking `elderly families and handicapped
  families' and inserting `elderly and disabled families'; and
  (4) in section 17(c)(2)(G)(i), by striking `the elderly' and inserting
  `elderly families'.
  (b) HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974- The first sentence
  of section 209 of the Housing and Community Development Act of 1974
  (42 U.S.C. 1438) is amended by striking `the elderly or the handicapped'
  and inserting `elderly or disabled families'.
SEC. 626. INAPPLICABILITY TO INDIAN PUBLIC HOUSING.
  The amendments made by this subtitle shall not apply with respect to lower
  income housing developed or operated pursuant to a contract between the
  Secretary of Housing and Urban Development and an Indian housing authority.
Subtitle C--Standards and Obligations of Residency in Federally Assisted
Housing
SEC. 641. COMPLIANCE BY OWNERS AS CONDITION OF FEDERAL ASSISTANCE.
  The Secretary of Housing and Urban Development shall require owners of
  federally assisted housing (as such term is defined in section 683(2)),
  as a condition of receiving housing assistance for such housing, to comply
  with the procedures and requirements established under this subtitle.
SEC. 642. COMPLIANCE WITH CRITERIA FOR OCCUPANCY AS REQUIREMENT FOR TENANCY.
  In selecting tenants for occupancy of units in federally assisted housing, an
  owner of such housing shall utilize the criteria for occupancy in federally
  assisted housing established by the Secretary, by regulation, under section
  643. If an owner determines that an applicant for occupancy in the housing
  does not meet such criteria, the owner may deny such applicant occupancy.
SEC. 643. ESTABLISHMENT OF CRITERIA FOR OCCUPANCY.
  (a) TASK FORCE-
  (1) ESTABLISHMENT- To assist the Secretary in establishing reasonable
  criteria for occupancy in federally assisted housing, the Secretary shall
  establish a task force to review all rules, policy statements, handbooks,
  technical assistance memoranda, and other relevant documents issued by the
  Department of Housing and Urban Development on the standards and obligations
  governing residency in federally assisted housing and make recommendations
  to the Secretary for the establishment of such criteria for occupancy.
  (2) MEMBERS- The Secretary shall appoint members to the task force, which
  shall include individuals representing the interests of owners, managers,
  and tenants of federally assisted housing, public housing agencies, owner
  and tenant advocacy organizations, persons with disabilities and disabled
  families, organizations assisting homeless individuals, and social service,
  mental health, and other nonprofit servicer providers who serve federally
  assisted housing.
  (3) COMPENSATION- Members of the task force shall not receive compensation
  for serving on the task force.
  (4) DUTIES- The task force shall--
  (A) review all existing standards, regulations, and guidelines governing
  occupancy and tenant selection policies in federally assisted housing;
  (B) review all existing standards, regulations, and guidelines governing
  lease provisions and other rules of occupancy for federally assisted housing;
  (C) determine whether the standards, regulations, and guidelines reviewed
  under subparagraphs (A) and (B) provide sufficient guidance to owners and
  managers of federally assisted housing to--
  (i) develop procedures for preselection inquiries sufficient to determine
  the capacity of applicants to comply with reasonable lease terms and
  conditions of occupancy;
  (ii) utilize leases that prohibit behavior which endangers the health or
  safety of other tenants or violates the rights of other tenants to peaceful
  enjoyment of the premises;
  (iii) assess the need to provide, and appropriate measures for providing,
  reasonable accommodations required under the Fair Housing Act and section
  504 of the Rehabilitation Act of 1973 for persons with various types of
  disabilities; and
  (iv) comply with civil rights laws and regulations;
  (D) propose criteria for occupancy in federally assisted housing,
  standards for the reasonable performance and behavior of tenants of
  federally assisted housing, compliance standards consistent with the
  reasonable accommodation of the requirements of the Fair Housing Act and
  section 504 of the Rehabilitation Act of 1973, standards for compliance
  with other civil rights laws, and procedures for the eviction of tenants
  not complying with such standards consistent with sections 6 and 8 of the
  United States Housing Act of 1937; and
  (E) report to the Congress and the Secretary of Housing and Urban Development
  pursuant to paragraph (7).
  (5) PROCEDURE- In carrying out its duties, the task force shall hold public
  hearings and receive written comments for a period of not less than 60 days.
  (6) SUPPORT- The Secretary of Housing and Urban Development shall cooperate
  fully with the task force and shall provide support staff and office space
  to assist the task force in carrying out its duties.
  (7) REPORTS- Not later than 3 months after the date of enactment of this Act,
  the task force shall submit to the Secretary and the Congress a preliminary
  report describing its initial actions. Not later than 6 months after the
  date of enactment of this Act, the task force shall submit a report to
  the Secretary and the Congress, which shall include--
  (A) a description of its findings; and
  (B) recommendations to revise such standards, regulations, and guidelines to
  provide accurate and complete guidance to owners and managers of federally
  assisted housing as determined necessary under paragraph (4).
  (b) RULEMAKING-
  (1) AUTHORITY- The Secretary shall, by regulation, establish criteria for
  selection of tenants for occupancy in federally assisted housing and lease
  provisions for such housing.
  (2) STANDARDS- The criteria shall provide sufficient guidance to owners
  and managers of federally assisted housing to enable them to (A) select
  tenants capable of complying with reasonable lease terms, (B) utilize leases
  prohibiting behavior which endangers the health or safety of others or
  violates the right of other tenants to peaceful enjoyment of the premises,
  (C) comply with legal requirements to make reasonable accommodations for
  persons with disabilities, and (D) comply with civil rights laws. The
  criteria shall be consistent with the requirements under subsections (k)
  and (l) of section 6 and section 8(d)(1) of the United States Housing
  Act of 1937 and any similar contract and lease requirements for federally
  assisted housing. In establishing the criteria, the Secretary shall take
  into consideration the report of the task force under subsection (a)(7).
  (3) PROCEDURE- Not later than 90 days after the submission of the final
  report under subsection (a)(7), the Secretary shall issue a notice of
  proposed rulemaking of the regulations under this subsection providing
  for notice and opportunity for public comment regarding the regulations,
  pursuant to the provisions of section 553 of title 5, United States Code
  (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section). The
  duration of the period for public comment under such section 553 shall not
  be less than 60 days. The Secretary shall issue final regulations under this
  subsection not later than the expiration of the 60-day period beginning upon
  the conclusion of the comment period, which shall take effect upon issuance.
SEC. 644. ASSISTED APPLICATIONS.
  (a) AUTHORITY- The Secretary shall provide that any individual or family
  applying for occupancy in federally assisted housing may include in the
  application for the housing the name, address, phone number, and other
  relevant information of a family member, friend, or social, health,
  advocacy, or other organization, and that the owner shall treat such
  information as confidential.
  (b) MAINTENANCE OF INFORMATION- The Secretary shall require the owner of
  any federally assisted housing receiving an application including such
  information to maintain such information for any applicants who become
  tenants of the housing, for the purposes of facilitating contact by the
  owner with such person or organization to assist in providing any services
  or special care for the tenant and assist in resolving any relevant tenancy
  issues arising during the tenancy of such tenant.
  (c) LIMITATIONS- An owner of federally assisted housing may not require
  any individual or family applying for occupancy in the housing to provide
  the information described in subsection (a).
Subtitle D--Authority To Provide Preferences for Elderly Residents and Units
for Disabled Residents in Certain Section 8 Assisted Housing
SEC. 651. AUTHORITY.
  Notwithstanding any other provision of law, an owner of a covered section 8
  housing project (as such term is defined in section 659) designed primarily
  for occupancy by elderly families may, in selecting tenants for units
  in the project that become available for occupancy, give preference to
  elderly families who have applied for occupancy in the housing, subject
  to the requirements of this subtitle.
SEC. 652. RESERVATION OF UNITS FOR DISABLED FAMILIES.
  (a) REQUIREMENT- Notwithstanding any other provision of law, for any project
  for which an owner gives preference in occupancy to elderly families pursuant
  to section 651, such owner shall (subject to sections 653, 654, and 655)
  reserve units in the project for occupancy only by disabled families
  who are not elderly or near-elderly families (and who have applied for
  occupancy in the housing) in the number determined under subsection (b).
  (b) NUMBER OF UNITS- Each owner required to reserve units in a project
  for occupancy under subsection (a) shall reserve a number of units in the
  project that is not less than the lesser of--
  (1) the number of units equivalent to the higher of--
  (A) the percentage of units in the project that were occupied by such
  disabled families upon the date of the enactment of this Act; or
  (B) the percentage of units in the project that were occupied by such
  families upon January 1, 1992; or
  (2) 10 percent of the number of units in the project.
SEC. 653. SECONDARY PREFERENCES.
  (a) INSUFFICIENT ELDERLY FAMILIES- If an owner of a covered section
  8 housing project in which elderly families are given a preference
  for occupancy pursuant to section 651 determines (in accordance with
  regulations established by the Secretary) that there are insufficient
  numbers of elderly families who have applied for occupancy in the housing
  to fill all the units in the project not reserved under section 652, the
  owner may give preference for occupancy of such units to disabled families
  who are near-elderly families and have applied for occupancy in the housing.
  (b) INSUFFICIENT NON-ELDERLY DISABLED FAMILIES- If an owner of a covered
  section 8 housing project in which elderly families are given a preference
  for occupancy pursuant to section 651 determines (in accordance with
  regulations established by the Secretary) that there are insufficient
  numbers of disabled families who are not elderly or near-elderly families
  and have applied for occupancy in the housing to fill all the units in
  the project reserved under section 652, the owner may give preference for
  occupancy of units so reserved to disabled families who are near-elderly
  families and have applied for occupancy in the housing.
SEC. 654. GENERAL AVAILABILITY OF UNITS.
  If an owner of a covered section 8 housing project in which disabled families
  who are near-elderly families are given a preference for occupancy pursuant
  to subsection (a) or (b) of section 653 determines (in accordance with
  regulations established by the Secretary) that there are an insufficient
  number of such families to fill all the units in the project for which
  the preference is applicable, the owner shall make such units generally
  available for occupancy by families who have applied, and are eligible,
  for occupancy in the housing, without regard to the preferences established
  pursuant to this subtitle.
SEC. 655. PREFERENCE WITHIN GROUPS.
  Among disabled families qualifying for occupancy in units reserved under
  section 652, and among elderly families and near-elderly families qualifying
  for preference for occupancy pursuant to section 651 or 653, preference
  for occupancy in units that are assisted under section 8 of the United
  States Housing Act of 1937 shall be given to disabled families according
  to the preferences for occupancy referred to in section 8(d)(1)(A)(i) of
  the United States Housing Act of 1937 and the first sentence of section
  8(o)(3)(B) of such Act, to elderly families according to such preferences,
  and to near-elderly families according to such preferences, respectively.
SEC. 656. PROHIBITION OF EVICTIONS.
  Any tenant who, except for reservation of a percentage of the units of a
  project pursuant to section 652 or any preference for occupancy established
  pursuant to this subtitle, is lawfully residing in a dwelling unit in a
  covered section 8 housing project, may not be evicted or otherwise required
  to vacate such unit because of the reservation or preferences or because
  of any action taken by the Secretary of Housing and Urban Development or
  the owner of the project pursuant to this subtitle.
SEC. 657. TREATMENT OF COVERED SECTION 8 HOUSING NOT SUBJECT TO ELDERLY
PREFERENCE.
  If an owner of any covered section 8 housing project designed primarily
  for occupancy by elderly families does not give preference in occupancy
  to elderly families as authorized in this subtitle, then elderly families
  (as such term was defined in section 3 of the United States Housing Act
  of 1937 before the date of the enactment of this Act) shall be eligible
  for occupancy in such housing to the same extent that such families were
  eligible before the date of the enactment of this Act.
SEC. 658. TREATMENT OF OTHER FEDERALLY ASSISTED HOUSING.
  (a) RESTRICTED OCCUPANCY- An owner of any federally assisted  project
  (or portion of a project) as described in subparagraphs (D), (E), and (F)
  of section 683(2) that was designed for occupancy by elderly families may
  continue to restrict occupancy in such project (or portion) to elderly
  families in accordance with the rules, standards, and agreements governing
  occupancy in such housing in effect at the time of the development of
  the housing.
  (b) PROHIBITION OF EVICTIONS- Any tenant who is lawfully residing in
  a dwelling unit in a housing project described in subsection (a) may
  not be evicted or otherwise required to vacate such unit because of any
  reservation or preferences under this subtitle or because of any action
  taken by the Secretary of Housing and Urban Development or the owner of
  the project pursuant to this subtitle.
SEC. 659. COVERED SECTION 8 HOUSING.
  For purposes of this subtitle, the term `covered section 8 housing' means
  housing described in section 683(2)(G) that was originally designed for
  occupancy by elderly families.
SEC. 660. SECTION 8 PREFERENCE.
  Section 8(d) of the United States Housing Act of 1937 (42 U.S.C. 1437f(d))
  is amended by adding at the end the following new paragraph:
  `(4) A public housing agency that serves more than one unit of general
  local government may, at the discretion of the agency, in allocating
  assistance under this section, give priority to disabled families that
  are not elderly families.'.
SEC. 661. STUDY.
  The Secretary of Housing and Urban Development shall conduct a study to
  determine the extent to which Federal housing programs serve elderly
  families, disabled families, and families with children, in relation
  to the need of such families who are eligible for assistance under such
  programs. The Secretary shall submit a report to the Congress describing
  the study and the findings of the study not later than the expiration of
  the 1-year period beginning on the date of the enactment of this Act.
Subtitle E--Service Coordinators for Elderly and Disabled Residents of
Federally Assisted Housing
SEC. 671. REQUIREMENT TO PROVIDE SERVICE COORDINATORS.
  (a) IN GENERAL- To the extent that amounts are made available to carry
  out this subtitle pursuant to the amendments made by this subtitle,
  the Secretary shall require owners of covered federally assisted housing
  projects (as such term is defined in subsection (d)) receiving such amounts
  to provide for employing or otherwise retaining the services of one or more
  individuals to coordinate the provision of supportive services for elderly
  and disabled families residing in the projects (in this section referred
  to as a `service coordinator'). No such elderly or disabled family may be
  required to accept services.
  (b) RESPONSIBILITIES- Each service coordinator of a covered federally
  assisted housing project provided pursuant to this subtitle or the amendments
  made by this subtitle--
  (1) shall consult with the owner of the housing, tenants, any tenant
  organizations, any resident management organizations, service providers,
  and any other appropriate persons, to identify the particular needs and
  characteristics of elderly and disabled families who reside in the project
  and any supportive services related to such needs and characteristics;
  (2) shall manage and coordinate the provision of such services for residents
  of the project;
  (3) may provide training to tenants of the project in the obligations of
  tenancy or coordinate such training;
  (4) shall meet the minimum qualifications and standards required under
  section 802(d)(4) of the Cranston-Gonzalez National Affordable Housing
  Act; and
  (5) may carry out other appropriate activities for residents of the project.
  (c) INCLUDED SERVICES- Supportive services referred to under subsection
  (b)(1) may include health-related services, mental health services,
  services for nonmedical counseling, meals, transportation, personal care,
  bathing, toileting, housekeeping, chore assistance, safety, group and
  socialization activities, assistance with medications (in accordance with
  any applicable State laws), case management, personal emergency response,
  and other appropriate services. The services may be provided through any
  agency of the Federal Government or any other public or private department,
  agency, or organization.
  (d) COVERED FEDERALLY ASSISTED HOUSING- For purposes of this subtitle, the
  term `covered federally assisted housing' means housing that is federally
  assisted housing (as such term is defined in section 683(2), except that
  such term does not include housing described in subparagraphs (C) and (D)
  of such section.
SEC. 672. REQUIRED TRAINING OF SERVICE COORDINATORS.
  Section 802(d)(4) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 8011(d)(4)) is amended by inserting after the period at the end
  of the first sentence beginning after subparagraph (E) the following new
  sentence: `Such qualifications and standards shall include requiring each
  service coordinator to be trained in the aging process, elder services,
  disability services, eligibility for and procedures of Federal and applicable
  State entitlement programs, legal liability issues relating to providing
  service coordination, drug and alcohol use and abuse by the elderly,
  and mental health issues.'.
SEC. 673. COSTS OF PROVIDING SERVICE COORDINATORS IN PUBLIC HOUSING.
  Section 9(a)(1)(B) of the United States Housing Act of 1937 (42
  U.S.C. 1437g(a)(1)(B)) is amended--
  (1) in the first sentence, by redesignating clauses (i) and (ii) as
  subclauses (I) and (II), respectively;
  (2) in the second sentence--
  (A) by striking `subparagraph' and inserting `clause';
  (B) by inserting `or section 802 of the Cranston-Gonzalez National Affordable
  Housing Act' after `Congregate Housing Services Act of 1978'; and
  (C) by inserting a period after `section 811 of the Cranston-Gonzalez
  National Affordable Housing Act';
  (3) by inserting `(i)' after the subparagraph designation; and
  (4) by adding at the end the following new clause:
  `(ii) Annual contributions under this section to any public housing
  agency for any project may be used, with respect to such project, for
  (I) the cost of employing or otherwise retaining the services of one or
  more service coordinators under section 661 of the Housing and Community
  Development Act of 1992 to coordinate the provision of any supportive
  services within the project for residents of the project who are elderly
  families and disabled families, and (II) expenses for the provision of
  such services for such residents of the project. Not more than 15 percent
  of the cost of the provision of such services may be provided under this
  section. Services may not be provided under this clause for any person
  receiving assistance under the Congregate Housing Services Act of 1978 or
  section 802 of the Cranston-Gonzalez National Affordable Housing Act. The
  budget authority available under section 5(c) for assistance under this
  section is authorized to be increased by $30,000,000 on or after October 1,
  1992, and by $30,000,000 on or after October 1, 1993. Amounts made available
  under this clause shall be used to provide additional annual contributions
  to public housing agencies only for the purpose of providing service
  coordinators and services under this clause for public housing projects.'.
SEC. 674. COSTS OF PROVIDING SERVICE COORDINATORS IN PROJECT-BASED SECTION
8 HOUSING.
  Section 8(d)(2) of the United States Housing Act of 1937 (42
  U.S.C. 1437f(d)(2)) is amended by adding at the end the following new
  subparagraph:
  `(F)(i) In determining the amount of assistance provided under an assistance
  contract for project-based assistance under this paragraph or a contract for
  assistance for housing constructed or substantially rehabilitated pursuant
  to assistance provided under section 8(b)(2) of this Act (as such section
  existed immediately before October 1, 1983), the Secretary may consider and
  annually adjust, with respect to such project, for the cost of employing
  or otherwise retaining the services of one or more service coordinators
  under section 661 of the Housing and Community Development Act of 1992 to
  coordinate the provision of any services within the project for residents
  of the project who are elderly or disabled families.
  `(ii) The budget authority available under section 5(c) for assistance
  under this section is authorized to be increased by $15,000,000 on or after
  October 1, 1992, and by $15,000,000 on or after October 1, 1993. Amounts
  made available under this subparagraph shall be used to provide additional
  amounts under annual contributions contracts for assistance under this
  section which shall be made available through assistance contracts only
  for the purpose of providing service coordinators under clause (i) for
  projects receiving project-based assistance under this paragraph and to
  provide additional amounts under contracts for assistance for projects
  constructed or substantially rehabilitated pursuant to assistance provided
  under section 8(b)(2) of this Act (as such section existed immediately
  before October 1, 1983) only for such purpose.'.
SEC. 675. COSTS OF PROVIDING SERVICE COORDINATORS FOR FAMILIES RECEIVING
FEDERAL TENANT-BASED ASSISTANCE.
  Section 8(q) of the United States Housing Act of 1937 (42 U.S.C. 1437f(q))
  is amended--
  (1) by redesignating paragraph (3) as paragraph (4); and
  (2) by inserting after paragraph (2) the following new paragraph:
  `(3)(A) Fees under this subsection may be used for the costs of employing
  or otherwise retaining the services of one or more service coordinators
  under section 661 of the Housing and Community Development Act of 1992
  to coordinate the provision of supportive services for elderly families
  and disabled families on whose behalf tenant-based assistance is provided
  under this section or section 811(b)(1). Such service coordinators shall
  have the same responsibilities with respect to such families as service
  coordinators of covered federally assisted housing projects have under
  section 661 of such Act with respect to residents of such projects.
  `(B) To the extent amounts are provided in appropriation Acts under
  subparagraph (C), the Secretary shall increase fees under this subsection
  to provide for the costs of such service coordinators for public housing
  agencies.
  `(C) The budget authority available under section 5(c) for assistance
  under this section is authorized to be increased by $5,000,000 on or after
  October 1, 1992, and by $5,000,000 on or after October 1, 1993. Amounts
  made available under this subparagraph shall be used to provide additional
  amounts under annual contributions contracts for increased fees under this
  subsection, which shall be used only for the purpose of providing service
  coordinators for public housing agencies described in subparagraph (A).'.
SEC. 676. GRANTS FOR COSTS OF PROVIDING SERVICE COORDINATORS IN MULTIFAMILY
HOUSING ASSISTED UNDER NATIONAL HOUSING ACT.
  (a) AUTHORITY- The Secretary may make grants under this section to owners
  of federally assisted housing projects described in subparagraphs (E)
  and (F) of section 683(2). Any grant amounts shall be used for the costs
  of employing or otherwise retaining the services of one or more service
  coordinators under section 661 to coordinate the provision of any services
  within the project for residents of the project who are elderly families
  and disabled families (as such terms are defined in section 683 of this Act).
  (b) APPLICATION AND SELECTION- The Secretary shall provide for the form
  and manner of applications for grants under this section and for selection
  of applicants to receive such grants.
  (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  for fiscal years 1993 and 1994 such sums as may be necessary for grants
  under this section.
  (d) ELIGIBLE PROJECT EXPENSE- For any federally assisted housing project
  described in subparagraph (E) or (F) of section 683(2) that does not
  receive a grant under this section, the cost of employing or otherwise
  retaining the services of one or more service coordinators under section
  661 and not more than 15 percent of the cost of providing services to the
  residents of the project shall be considered an eligible project expense,
  but only to the extent that amounts are available from project rent and
  other income for such costs.
SEC. 677. EXPANDED RESPONSIBILITIES OF SERVICE COORDINATORS IN SECTION
202 HOUSING.
  (a) SUPPORTIVE HOUSING FOR THE ELDERLY- Section 202(g) of the Housing Act of
  1959 (12 U.S.C. 1701q(g)), as amended by section 801 of the Cranston-Gonzalez
  National Affordable Housing Act, is amended--
  (A) in paragraph (2), by striking the last sentence; and
  (B) by adding at the end the following new paragraph:
  `(3) SERVICE COORDINATORS- Any cost associated with employing or otherwise
  retaining a service coordinator in housing assisted under this section
  shall be considered an eligible cost under subsection (c)(2). If a project
  is receiving congregate housing services assistance under section 802 of
  the Cranston-Gonzalez National Affordable Housing Act, the amount of costs
  provided under subsection (c)(2) for the project service coordinator may
  not exceed the additional amount necessary to cover the costs of providing
  for the coordination of services for residents of the project who are
  not eligible residents under such section 802. To the extent that amounts
  are available pursuant to subsection (c)(2) for the costs of carrying out
  this paragraph within a project, an owner of housing assisted under this
  section shall provide a service coordinator for the housing to coordinate
  the provision of services under this subsection within the housing.'.
  (b) OLD SECTION 202 PROJECTS-
  (1) AVAILABILITY OF SECTION 8 ASSISTANCE- Subject to the availability of
  appropriations for contract amendments for the purpose of this paragraph,
  in determining the amount of assistance under section 8 of the United States
  Housing Act of 1937 to be provided for a project assisted under section
  202 of the Housing Act of 1959, as in effect before the effectiveness
  of the amendments made by section 801 of the Cranston-Gonzalez National
  Affordable Housing Act, the Secretary shall consider (and annually adjust
  for) the costs of--
  (A) employing or otherwise retaining the services of one or more service
  coordinators under section 661 of this Act to coordinate the provision
  of any services within the project for residents of the project who are
  elderly families and disabled families; and
  (B) expenses for the provision of such services.
Not more than 15 percent of the cost of the provision of services under
subparagraph (B) may be considered under this paragraph for purposes of
determining the amount of assistance provided.
  (2) INAPPLICABILITY OF HUD REFORM ACT PROVISIONS- Notwithstanding section
  102 of the Department of Housing and Urban Development Reform Act of 1989,
  the provisions of paragraphs (1), (2), and (3) of subsection (a) of such
  section shall not apply to amendments to contracts under section 8 of
  the United States Housing Act of 1937 made to carry out the purposes of
  paragraph (1) of this subsection.
  (3) LIMITATION- If a project is receiving congregate housing services
  assistance under the Congregate Housing Services Act of 1978 or section
  802 of the Cranston-Gonzalez National Affordable Housing Act, the amount
  of costs provided pursuant to paragraph (1) for the project may not exceed
  the additional amount necessary to cover the costs of providing for the
  coordination of services for residents of the project who are not eligible
  residents under such section 802 or eligible project residents under the
  Congregate Housing Services Act of 1978, as applicable.
Subtitle F--General Provisions
SEC. 681. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGIES.
  Section 105(b) of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12705(b)) is amended--
  (1) in paragraph (1) by inserting `persons with disabilities,' after
  `the elderly,'; and
  (2) by adding after paragraph (16), as added by the preceding provisions
  of this Act, the following new paragraph:
  `(17) describe the jurisdictions activities to enhance coordination between
  public and assisted housing providers and private and governmental health,
  mental health, and service agencies.'.
SEC. 682. CONFORMING AMENDMENTS.
  (a) PUBLIC HOUSING- Section 6(c)(4) of the United States Housing Act of 1937
  (42 U.S.C. 1437d(c)(4)) is amended--
  (1) by striking `and' at the end of subparagraph (D);
  (2) by striking the period at the end of subparagraph (E) and inserting
  `; and'; and
  (3) by adding at the end the following new subparagraph:
  `(F) requiring the public housing agency to ensure and maintain compliance
  with subtitle C of title VI of the Housing and Community Development Act
  of 1992 and any regulations issued under such subtitle.'.
  (b) PROJECT-BASED SECTION 8 HOUSING- Section 8(d)(2) of the United States
  Housing Act of 1937 (42 U.S.C. 1437f(d)(2)), as amended by section 664
  of this Act, is further amended by adding at the end the following new
  subparagraphs:
  `(G) An assistance contract for project-based assistance under this paragraph
  shall provide that the owner shall ensure and maintain compliance with
  subtitle C of title VI of the Housing and Community Development Act of
  1992 and any regulations issued under such subtitle.
  `(H) Notwithstanding subsection (d)(1)(A)(i), an owner of a covered
  section 8 housing project (as such term is defined in section 659 of
  the Housing and Community Development Act of 1992) may give preference
  for occupancy of dwelling units in the project, and reserve units for
  occupancy, in accordance with subtitle D of title VI of the Housing and
  Community Development Act of 1992.'.
  (c) SUPPORTIVE HOUSING FOR THE ELDERLY- Section 202 of the Housing Act of
  1959 (12 U.S.C. 1701q), as amended by section 801 of the Cranston-Gonzalez
  National Affordable Housing Act, is amended--
  (1) in subsection (i)(1), by inserting after the first sentence the
  following new sentence: `Such tenant selection procedures shall comply
  with subtitle C of title VI of the Housing and Community Development Act
  of 1992 and any regulations issued under such subtitle.'; and
  (2) in subsection (j), by adding after paragraph (6) (as added by section
  601(d) of this Act) the following new paragraph:
  `(7) COMPLIANCE WITH HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992- Each
  owner shall operate housing assisted under this section in compliance
  with subtitle C of title VI of the Housing and Community Development Act
  of 1992 and any regulations issued under such subtitle.'.
SEC. 683. DEFINITIONS.
  For purposes of this title:
  (1) ELDERLY, DISABLED, AND NEAR-ELDERLY FAMILIES- The terms `elderly family',
  `disabled family', and `near-elderly family' have the meanings given the
  terms under section 3(b)(3) of the United States Housing Act of 1937.
  (2) FEDERALLY ASSISTED HOUSING- The terms `federally assisted housing'
  and `project' mean--
  (A) a public housing project (as such term is defined in section 3(b)
  of the United States Housing Act of 1937);
  (B) housing for which project-based assistance is provided under section
  8 of the United States Housing Act of 1937;
  (C) housing that is assisted under section 202 of the Housing Act of 1959
  (as amended by section 801 of the Cranston-Gonzalez National Affordable
  Housing Act);
  (D) housing that is assisted under section 202 of the Housing Act of 1959,
  as such section existed before the enactment of the Cranston-Gonzalez
  National Affordable Housing Act;
  (E) housing financed by a loan or mortgage insured under section 221(d)(3)
  of the National Housing Act that bears interest at a rate determined under
  the proviso of section 221(d)(5) of such Act;
  (F) housing insured, assisted, or held by the Secretary or a State or
  State agency under section 236 of the National Housing Act; and
  (G) housing constructed or substantially rehabilitated pursuant to assistance
  provided under section 8(b)(2) of the United States Housing Act of 1937,
  as in effect before October 1, 1983, that is assisted under a contract
  for assistance under such section.
  (3) HOUSING ASSISTANCE- The term `housing assistance' means, with respect
  to federally assisted housing, the grant, contribution, capital advance,
  loan, mortgage insurance, or other assistance provided for the housing
  under the provisions of law referred to in paragraph (2). The term also
  includes any related assistance provided for the housing by the Secretary,
  including any rental assistance for low-income occupants.
  (4) OWNER- The term `owner' means, with respect to federally assisted
  housing, the entity or private person, including a cooperative or public
  housing agency, that has the legal right to lease or sublease dwelling
  units in such housing.
  (5) SECRETARY- The term `Secretary' means the Secretary of Housing and
  Urban Development.
SEC. 684. APPLICABILITY.
  Except as otherwise provided in subtitles B through F of this title and
  the amendments made by such subtitles, such subtitles and the amendments
  made by such subtitles shall apply upon the expiration of the 6-month
  period beginning on the date of the enactment of this Act.
SEC. 685. REGULATIONS.
  The Secretary shall issue regulations necessary to carry out subtitles
  B through F of this title and the amendments made by such subtitles not
  later than the expiration of the 6-month period beginning on the date of
  the enactment of this Act. The regulations shall be issued after notice
  and opportunity for public comment pursuant to the provisions of section
  553 of title 5, United States Code (notwithstanding subsections (a)(2),
  (b)(B), and (d)(3) of such section).
TITLE VII--RURAL HOUSING
SEC. 701. PROGRAM AUTHORIZATIONS.
  (a) INSURANCE AND GUARANTEE AUTHORITY- Section 513(a)(1) of the Housing
  Act of 1949 (42 U.S.C. 1483(a)(1)) is amended to read as follows:
  `(a) IN GENERAL- (1) The Secretary may, to the extent approved in
  appropriation Acts, insure and guarantee loans under this title during
  fiscal years 1993 and 1994, in aggregate amounts not to exceed $2,446,855,600
  and $2,549,623,535, respectively, as follows:
  `(A) For insured or guaranteed loans under section 502 on behalf of
  low-income borrowers receiving assistance under section 521(a)(1),
  $1,676,484,000 for fiscal year 1993 and $1,746,896,328 for fiscal year 1994.
  `(B) For guaranteed loans under section 502(h) on behalf of low- and
  moderate-income borrowers, such sums as may be appropriated for fiscal
  years 1993 and 1994.
  `(C) For loans under section 504, $12,400,000 for fiscal year 1993 and
  $12,920,800 for fiscal year 1994.
  `(D) For insured loans under section 514, $16,821,600 for fiscal year 1993
  and $17,528,107 for fiscal year 1994.
  `(E) For insured loans under section 515, $739,500,000 for fiscal year
  1993 and $770,559,000 for fiscal year 1994.
  `(F) For loans under section 523(b)(1)(B), $800,000 for fiscal year 1993
  and $833,600 for fiscal year 1994.
  `(G) For site loans under section 524, $850,000 for fiscal year 1993 and
  $885,700 for fiscal year 1994.'.
  (b) AUTHORIZATION OF APPROPRIATIONS- Section 513(b) of the Housing Act of
  1949 (42 U.S.C. 1483(b)) is amended to read as follows:
  `(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  for fiscal years 1993 and 1994, and to remain available until expended,
  the following amounts:
  `(1) For grants under section 502(f)(1), $1,100,000 for fiscal year 1993
  and $1,146,200 for fiscal year 1994.
  `(2) For grants under section 504, $21,100,000 for fiscal year 1993 and
  $21,986,200 for fiscal year 1994.
  `(3) For purposes of section 509(c), $600,000 for fiscal year 1993 and
  $625,200 for fiscal year 1994.
  `(4) For project preparation grants under section 509(f)(6), $5,300,000
  in fiscal year 1993 and $5,522,600 in fiscal year 1994.
  `(5) In fiscal years 1993 and 1994, such sums as may be necessary to
  meet payments on notes or other obligations issued by the Secretary under
  section 511 equal to--
  `(A) the aggregate of the contributions made by the Secretary in the form
  of credits on principal due on loans made pursuant to section 503; and
  `(B) the interest due on a similar sum represented by notes or other
  obligations issued by the Secretary.
  `(6) For grants for service coordinators under section 515(y), $1,000,000
  in fiscal year 1993 and $1,042,000 in fiscal year 1994.
  `(7) For financial assistance under section 516--
  `(A) for low-rent housing and related facilities for domestic farm labor
  under subsections (a) through (j) of such section, $21,700,000 for fiscal
  year 1993 and $22,611,400 for fiscal year 1994; and
  `(B) for housing for rural homeless and migrant farmworkers under subsection
  (k) of such section, $10,500,000 for fiscal year 1993 and $10,941,000 for
  fiscal year 1994.
  `(8) For grants under section 523(f), $13,900,000 for fiscal year 1993
  and $14,483,800 for fiscal year 1994.
  `(9) For grants under section 533, $30,800,000 for fiscal year 1993 and
  $32,093,600 for fiscal year 1994.'.
  (c) RENTAL ASSISTANCE PAYMENT CONTRACTS- Section 513(c)(1) of the Housing
  Act of 1949 (42 U.S.C. 1483(c)(1)) is amended to read as follows:
  `(c) RENTAL ASSISTANCE- (1) The Secretary, to the extent approved in
  appropriations Acts for fiscal years 1993 and 1994, may enter into rental
  assistance payment contracts under section 521(a)(2)(A) aggregating
  $414,100,000 for fiscal year 1993 and $431,492,200 for fiscal year 1994.'.
  (d) SUPPLEMENTAL RENTAL ASSISTANCE PAYMENT CONTRACTS- Section 513(d)
  of the Housing Act of 1949 (42 U.S.C. 1483(d)) is amended to read as follows:
  `(d) SUPPLEMENTAL RENTAL ASSISTANCE CONTRACTS- The Secretary, to the
  extent approved in appropriations Acts for fiscal years 1993 and 1994, may
  enter into 5-year supplemental rental assistance contracts under section
  502(c)(5)(D) aggregating $12,178,000 for fiscal year 1993 and $12,689,476
  for fiscal year 1994.'.
  (e) RENTAL HOUSING LOAN AUTHORITY- Section 515(b)(4) of the Housing Act
  of 1949 (42 U.S.C. 1485(b)(4)) is amended by striking `September 30, 1992'
  and inserting `September 30, 1994'.
  (f) RURAL HOUSING VOUCHER PROGRAM- Section 513(e) of the Housing Act of 1949
  (42 U.S.C. 1483(e)) is amended to read as follows:
  `(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  for rural housing vouchers under section 542, $130,000,000 for fiscal year
  1993 and $140,000,000 for fiscal year 1994.'.
  (g) DEFERRED MORTGAGE DEMONSTRATION- Section 502(g)(3) of the Housing
  Act of 1949 (42 U.S.C. 1472(g)(3)) is amended by striking `1991 and 1992'
  and inserting `1993 and 1994'.
SEC. 702. ELIGIBILITY OF HOMES ON LEASED LAND OWNED BY COMMUNITY LAND TRUSTS
FOR SECTION 502 LOANS.
  (a) ELIGIBILITY- Section 502(a) of the Housing Act of 1949 (42
  U.S.C. 1472(a)) is amended by adding at the end the following new paragraph:
  `(3)(A) Notwithstanding any other provision of this title, a loan may be
  made under this section for the purchase of a dwelling located on land
  owned by a community land trust, if the borrower and the loan otherwise
  meet the requirements applicable to loans under this section.
  `(B) For purposes of this paragraph, the term `community land trust'
  means a community housing development organization as such term is defined
  in section 104 of the Cranston-Gonzalez National Affordable Housing Act
  (except that the requirements under section 104(6)(C) and section 104(6)(D)
  shall not apply for purposes of this paragraph)--
  `(i) that is not sponsored by a for-profit organization;
  `(ii) that is established to carry out the activities under clause (iii);
  `(iii) that--
  `(I) acquires parcels of land, held in perpetuity, primarily for conveyance
  under long-term ground leases;
  `(II) transfers ownership of any structural improvements located on such
  leased parcels to the lessees; and
  `(III) retains a preemptive option to purchase any such structural
  improvement at a price determined by formula that is designed to ensure
  that the improvement remains affordable to low- and moderate-income families
  in perpetuity; and
  `(iv) that has its corporate membership open to any adult resident of a
  particular geographic area specified in the bylaws of the organization.'.
  (b) RECAPTURE- Section 521(a)(1)(D) of the Housing Act of 1949 (42
  U.S.C. 1490a(a)(1)(D)) is amended--
  (1) by inserting `(i)' after `(D)'; and
  (2) by adding at the end the following new clause:
  `(ii) In determining the amount recaptured under this subparagraph with
  respect to any loan made pursuant to section 502(a)(3) for the purchase of
  a dwelling located on land owned by a community land trust, the Secretary
  shall determine any appreciation of the dwelling based on any agreement
  between the borrower and the community land trust that limits the sale
  price or appreciation of the dwelling.'.
SEC. 703. MAXIMUM INCOME OF BORROWERS UNDER GUARANTEED LOANS.
  Section 502(h)(2) of the Housing Act of 1949 (42 U.S.C. 1472(h)(2)) is
  amended by inserting `115 percent of' after `exceed'.
SEC. 704. REMOTE RURAL AREAS.
  Section 502(f) of the Housing Act of 1949 (42 U.S.C. 1472(f)) is amended--
  (1) in paragraph (1), by inserting `or on tribal allotted or Indian trust
  land' after `area'; and
  (2) in paragraph (2),  by inserting `or on tribal allotted or Indian trust
  land' before the period.
SEC. 705. DESIGNATION OF UNDERSERVED AREAS AND RESERVATION OF ASSISTANCE.
  (a) REAUTHORIZATION OF DESIGNATION- Section 509(f) of the Housing Act of
  1949 (42 U.S.C. 1479(f)) is amended--
  (1) in paragraph (1), by striking `in each of fiscal years 1991 and 1992'
  and inserting `in each fiscal year';
  (2) in paragraph (2), by inserting at the end the following new flush
  sentence:
`In designating underserved areas under paragraph (1), in each fiscal year
the Secretary shall designate not less than 5 counties or communities that
contain tribal allotted or Indian trust land.'; and
  (3) in paragraph (4), by striking `an amount equal to 3.5 percent in fiscal
  year 1991 and 5.0 percent in fiscal year 1992' and inserting `an amount
  equal to 5.0 percent in fiscal years 1993 and 1994'.
  (b) DEFINITION OF COLONIAS- Section 509(f)(8) of the Housing Act of 1949
  (42 U.S.C. 1479(f)(8)) is amended--
  (1) by striking subparagraph (C);
  (2) by redesignating subparagraph (D) as subparagraph (C); and
  (3) by striking subparagraph (E) and inserting the following new
  subparagraph:
  `(D) was in existence as a colonia before the date of the enactment of
  the Cranston-Gonzalez National Affordable Housing Act.'.
  (c) COLONIAS REFINEMENTS- Section 509(f)(4)(B)(ii) of the Housing Act of 1949
  (42 U.S.C. 1479(f)(4)(B)(ii)) is amended by inserting before `a colonia',
  the following `, or in close proximity to, and serving the residents of,'.
SEC. 706. RURAL HOUSING VOUCHER PROGRAM.
  Title V of the Housing Act of 1949 (42 U.S.C. 501 et seq.) is amended--
  (1) in the last sentence of section 533(a) (42 U.S.C. 1490m(a)), by
  inserting after `1937' the following: `or section 542 of this title'; and
  (2) by adding at the end the following new section:
`SEC. 542. RURAL HOUSING VOUCHER PROGRAM.
  `(a) IN GENERAL- To such extent or in such amounts as are approved in
  appropriation Acts, the Secretary shall carry out a rural housing voucher
  program to assist very low-income families and persons to reside in rental
  housing in rural areas. For such purposes, the Secretary may provide
  assistance using a payment standard based on the fair market rental rate
  established by the Secretary for the area. The monthly assistance payment
  for any family shall be the amount by which the payment standard for the
  area exceeds 30 per centum of the family's monthly adjusted income, except
  that such monthly assistance payment shall not exceed the amount which the
  rent for the dwelling unit (including the amount allowed for utilities in
  the case of a unit with separate utility metering) exceeds 10 per centum
  of the family's monthly gross income.
  `(b) COORDINATION AND LIMITATION- In carrying out the rural housing voucher
  program under this section, the Secretary shall--
  `(1) coordinate activities under this section with activities assisted
  under sections 515 and 533 of this title; and
  `(2) enter into contracts for assistance for not more than 5000 units in
  any fiscal year.'.
SEC. 707. RENTAL HOUSING LOANS.
  (a) DEVELOPMENT COSTS- Section 515(e)(4) of the Housing Act of 1949 (42
  U.S.C. 1485(e)(4)) is amended--
  (1) by striking `and' before `initial';
  (2) by inserting before the first period the following: `, impact fees,
  local charges for installation, provision, or use of infrastructure, and
  local assessments for public improvements and services imposed by State
  and local governments'; and
  (3) by inserting after the period at the end the following new sentence:
  `Notwithstanding the first sentence of this paragraph, the term `development
  cost' shall not include any initial operating expenses in the case of any
  nonprofit corporation or consumer cooperative that is financing housing
  under this section and has been allocated a low-income housing tax credit
  by a housing credit agency pursuant to section 42 of the Internal Revenue
  Code of 1986.'.
  (b) COORDINATION OF LOANS AND RENTAL ASSISTANCE PAYMENTS- Section 515 of
  the Housing Act of 1949 (42 U.S.C. 1485) is amended--
  (1) in subsection (l), by striking paragraph (1) and inserting the following
  new paragraph:
  `(1) in the case of any applicant who applies for rental assistance
  payments under section 521 in connection with such project, the Secretary
  shall consider the availability of such rental assistance payments with
  respect to the project and shall require such applicant to demonstrate
  that a market exists for persons and families eligible for such rental
  assistance payments; and'; and
  (2) in subsection (p)--
  (1) in paragraph (4), by striking `, except' in the first sentence and
  all that follows through the end of the paragraph and inserting a period; and
  (2) by inserting at the end the following new paragraph:
  `(5) The Secretary shall coordinate the processing of any application
  for a loan under this section for a project and the processing of any
  application for assistance under section 521(a)(2) with respect to housing
  units in the same project in an economical and efficient manner. At the
  time the Secretary enters into a commitment to make or insure a loan under
  this section the Secretary shall obligate amounts for assistance payments
  under section 521(a)(2) for the project, to the extent that such amounts
  are available and the Secretary determines such assistance is necessary
  for the market feasibility of the project.'.
  (c) EQUITY CONTRIBUTION- Section 515(r)(2) of the Housing Act of 1949
  (42 U.S.C. 1485(r)(2)) is amended by inserting before the period at the
  end the following: `, except that the Secretary shall require a 5 percent
  contribution in the case of a project that is allocated a low-income housing
  tax credit pursuant to section 42 of the Internal Revenue Code of 1986'.
  (d) UNIFORM PROJECT COSTS AND COORDINATION OF HOUSING RESOURCES AND
  TAX BENEFITS- Section 515 of the Housing Act of 1949 (42 U.S.C. 1485)
  is amended by adding at the end the following new subsection:
  `(x) UNIFORM PROJECT COSTS; COORDINATION OF HOUSING RESOURCES AND TAX
  BENEFITS- The Secretary shall--
  `(1) establish standard guidelines for State offices that describe
  allowable development costs which are required for development of all
  projects under this section, without regard to whether the project was
  allocated a low-income housing tax credit;
  `(2) require each State to establish a process for coordinating the selection
  of projects under this section with the housing needs and priorities as
  established in a State comprehensive housing affordability strategy under
  section 105 of the Cranston-Gonzalez National Affordable Housing Act and
  a low-income housing tax credit allocation plan under section 42 of the
  Internal Revenue Code of 1986; and
  `(3) develop, in consultation with housing credit agencies (as that term is
  defined under section 42 of the Internal Revenue Code of 1986), uniform
  procedures for identifying and sharing information on project costs,
  builder profit, identity of interests relationships, and other factors,
  as appropriate, with the relevant housing credit agency for projects that
  are allocated a low-income housing tax credit pursuant to section 42(h) of
  the Internal Revenue Code of 1986 for the purpose of achieving compliance
  with section 102(d) of the Department of Housing and Urban Development
  Reform Act of 1989 (42 U.S.C. 3545(d)).'.
  (e) GRANTS FOR COSTS OF PROVIDING SERVICE COORDINATORS- Section 515 of
  the Housing Act of 1949 (42 U.S.C. 1485), as amended by this section,
  is further amended by adding at the end the following new subsection:
  `(y) SERVICE COORDINATORS-
  `(1) GRANTS- The Secretary may make grants under this subsection, with
  respect to any project that the Secretary determines has a sufficient
  number of frail elderly residents, for the cost of employing or otherwise
  retaining the services of one or more individuals to coordinate services
  provided to frail elderly residents of the project (in this subsection
  referred to as a `service coordinator'), who shall be responsible for--
  `(A) assessing the supportive service needs of frail elderly residents of
  the project, based on objective criteria and interviews with such residents;
  `(B) working with service providers to design the provision of services
  to meet the needs of frail elderly residents of the project, taking into
  consideration the needs and desires of such residents and their ability
  and willingness to pay for such services, as expressed by the residents;
  `(C) mobilizing public and private resources to obtain funding for such
  services for such residents;
  `(D) monitoring and evaluating the impact and effectiveness of any supportive
  services provided for such residents;
  `(E) consulting and coordinating with any appropriate public and private
  agencies regarding the provision of supportive services; and
  `(F) performing such other duties that the Secretary deems appropriate
  to enable frail elderly persons residing in federally assisted housing to
  live with dignity and independence.
  `(2) QUALIFICATIONS- Individuals employed as service coordinators pursuant
  to this subsection shall meet the minimum qualifications and standards
  established under section 802(d)(4) of the Cranston-Gonzalez National
  Affordable Housing Act for service coordinators under a congregate housing
  services program.
  `(3) APPLICATION AND SELECTION- The Secretary shall provide for the form
  and manner of applications for grants under this subsection and for the
  selection of applicants to receive the grants.
  `(4) DEFINITION OF FRAIL ELDERLY- For purposes of this subsection, the
  term `frail elderly' has the meaning given the term in section 802(k)
  of the Cranston-Gonzalez National Affordable Housing Act.'.
  (f) PROHIBITIONS REGARDING CONSIDERATIONS IN MAKING LOANS-
  (1) IN GENERAL- Section 515 of the Housing Act of 1949 (42 U.S.C. 1485),
  as amended by this section, is further amended by adding at the end the
  following new subsection:
  `(z) PROHIBITIONS-
  `(1) REMOTE RURAL AREAS- The Secretary may not refuse to make a loan that
  otherwise complies with the requirements under this section solely because
  the housing and related facilities involved are located in an area that
  is excessively rural in character or excessively remote.
  `(2) ESSENTIAL SERVICES- In making loans under this section, the Secretary
  may not provide any preference for any project based on the availability
  of any particular essential service. For purposes of this paragraph,
  an essential service shall include post offices (and postal services),
  grocery stores, pharmacies, schools, and health service facilities (and
  health services).
  `(3) GEOGRAPHIC LOCATION- In making loans under this section, the Secretary
  may not grant or deny approval based on the geographic location of the
  proposed project if the project is located in a rural area, as such term
  is defined in section 520, except that the Secretary shall give preference
  to any application for a project that will serve the needs of a rural
  community located 20 or more miles from an urban area.'.
  (2) REGULATIONS- The Secretary of Agriculture shall issue any regulations
  necessary to carry out the amendment made by paragraph (1) not later than
  the expiration of the 45-day period beginning on the date of the enactment
  of this Act. Not later than the expiration of the 30-day period beginning
  on the date of the enactment of this Act, the Secretary shall submit a copy
  of any regulations to be issued under this subsection to the Congress. The
  requirements of section 534(d) of the Housing Act of 1949 and subsections
  (b) and (c) of section 553 of title 5, United States Code, shall apply to
  any such regulations.
  (g) INDEPENDENT COST CERTIFICATIONS- Section 517(j)(3) of the Housing Act
  of 1949 (42 U.S.C. 1487(j)(3)) is amended by inserting after `industry,'
  the following: `independent audits of project expenses,'.
SEC. 708. NONPROFIT SET-ASIDE.
  (a) IN GENERAL- Section 515(w) of the Housing Act of 1949 (42 U.S.C. 1485(w))
  is amended--
  (1) in paragraph (1), by striking `not less than 7 percent of the amounts
  available in fiscal year 1991 and not less than 9 percent of the amounts
  available in fiscal year 1992' and inserting `not less than 9 percent of
  the amounts available in fiscal years 1993 and 1994';
  (2) in paragraph (1), in the second sentence by striking `or under whole
  or partial control with a for-profit entity';
  (3) in paragraph (1), by adding at the end the following new sentence:
  `A partnership, that has as its general partner a nonprofit entity or the
  nonprofit entity's for-profit subsidiary, is eligible to receive funds
  set aside under this subsection to sponsor a project which is receiving
  low-income housing tax credits authorized under section 42 of the Internal
  Revenue Code of 1986. For the purposes of this subsection, a nonprofit
  entity is an organization that--
  `(A) will own an interest in a project to be financed under this section
  and will materially participate in the development and the operation of
  the project;
  `(B) is a private organization that has nonprofit, tax exempt status under
  section 501(c)(3) or section 501(c)(4) of the Internal Revenue Code of 1986;
  `(C) has among its purposes the planning, development, or management of
  low-income housing or community development projects; and
  `(D) is not affiliated with or controlled by a for-profit organization.';
  (4) in paragraph (2), by adding at the end the following: `The Secretary
  may provide amounts available for reallocation under this subsection in
  excess of $750,000 in a given State, if such amounts are necessary to
  finance a project under this section.'; and
  (5) by striking paragraph (3) and inserting the following:
  `(3) UNUSED AMOUNTS-
  `(A) EQUITABLE DISTRIBUTION- Any amounts set aside under this subsection
  from the allocation for any State that are not obligated by 9 months after
  the allocation, shall first be pooled and made available to any other
  eligible nonprofit entity in any State as defined in this subsection.
  The Secretary shall make reasonable efforts to ensure that pooled funds
  are distributed under this subparagraph in an equitable manner.
  `(B) RETURN TO THE STATES- After funds have been pooled and obligated for
  30 days, the Secretary shall return any remaining funds to the States on
  a proportional basis for use by any other eligible entity as defined in
  this section.'.
  (b) EFFECTIVE DATE- The amendment made by subsection (a)(5) shall take
  effect on October 1, 1993, and shall apply to fiscal year 1994 and each
  fiscal year thereafter.
SEC. 709. CONSIDERATION OF CERTAIN AREAS AS RURAL AREAS.
  Section 520 of the Housing Act of 1949 (42 U.S.C. 1490) is amended by adding
  at the end the following new sentence: `Notwithstanding any other provision
  of this section, the city of Plainview, Texas, shall be considered a rural
  area for purposes of this title.'.
SEC. 710. PERMANENT AUTHORITY FOR SECTION 523.
  Section 523 of the Housing Act of 1949 (42 U.S.C. 1490c) is amended--
  (1) in subsection (b)(1)(A), by inserting after `efforts' the following:
  `, including the repair of units financed under section 502 that are being
  held in inventory'; and
  (2) by striking subsection (f).
SEC. 711. HOUSING PRESERVATION GRANTS FOR REPLACEMENT OF HOUSING.
  Section 533 of the Housing Act of 1949 (42 U.S.C. 1490m) is amended--
  (1) in subsection (a)--
  (A) by inserting `or replace' after `rehabilitate' each place it appears; and
  (B) in the second sentence, by inserting `or replaced' after `rehabilitated';
  (2) in subsection (b)--
  (A) by striking `Rehabilitation programs' and inserting `Preservation
  programs';
  (B) in paragraph (3), by inserting `or replacement' after `rehabilitation'
  each place it appears;
  (C) in paragraph (4), by striking `repair and rehabilitation' and inserting
  `repair, rehabilitation, and replacement';
  (D) by redesignating paragraphs (2) through (6) (as amended by this
  paragraph) as paragraphs (3) through (7), respectively; and
  (E) by inserting after paragraph (1) the following new paragraph:
  `(2) be used to provide loans or grants, not to exceed $15,000 per unit,
  to owners of single family housing to replace existing housing if repair
  or rehabilitation of the housing is determined by the Secretary not to be
  practicable and the owner of the housing is unable to afford a loan under
  section 502 for replacement housing;';
  (3) in the first sentence of subsection (c)(1), by striking `rehabilitation
  grant funds' and inserting `grant funds under this section'; and
  (4) in subsection (d)--
  (A) in paragraph (1), by striking `rehabilitation program' and inserting
  `preservation program';
  (B) in paragraphs (3)(A), (3)(B), and (3)(D), by striking `repair and
  rehabilitation' each place it appears and inserting `repair, rehabilitation,
  and replacement';
  (C) in paragraph (4), by inserting `, or replacement,' after `repair and
  rehabilitation'; and
  (D) by adding at the end the following new paragraph:
  `(5) A grantee may use housing preservation grant funds under this section
  for replacement housing only after providing documentation to the Secretary
  that--
  `(A) the existing housing is in such poor condition that rehabilitation
  is not economically feasible;
  `(B) the owner of the housing lacks the income or repayment ability
  necessary to qualify for a loan under section 502; and
  `(C) the grantee will extend assistance to the owner of the housing under
  terms that the owner can afford.'.
SEC. 712. PRESERVATION.
  (a) APPLICABILITY- Section 502(c) of the Housing Act of 1949 (42
  U.S.C. 1472(c)) is amended--
  (1) in subparagraph (2), by striking `before December 21, 1979,' and
  inserting `prior to the date of enactment of the Department of Housing
  and Urban Development Reform Act of 1989';
  (2) in subparagraph (4)(A), by striking `before December 21, 1979' and
  inserting `prior to the date of enactment of the Department of Housing
  and Urban Development Reform Act of 1989';
  (3) in subparagraph (5)(F), by striking `before December 21, 1979' and
  inserting `prior to the date of enactment of the Department of Housing
  and Urban Development Reform Act of 1989'; and
  (4) in subparagraph (5)(G), by striking `before December 21, 1979' and
  inserting `prior to the date of enactment of the Department of Housing
  and Urban Development Reform Act of 1989'.
  (b) INCENTIVES- Section 502(c)(4)(B) of the Housing Act of 1949 (42
  U.S.C. 1472(c)(4)(B)) is amended by adding the following new clause:
  `(vi) In the case of a project that has received rental assistance under
  section 8 of the United States Housing Act of 1937, permitting the owner to
  receive rent in excess of the amount determined necessary by the Secretary
  to defray the cost of long-term repair or maintenance of such a project.'.
  (c) OFFICE OF RURAL HOUSING PRESERVATION- Title V of the Housing Act of
  1949 (42 U.S.C. 1471 et seq.) is amended by inserting after section 536
  the following:
`SEC. 537. OFFICE OF RURAL HOUSING PRESERVATION.
  `(a) ESTABLISHMENT- There is established within the Farmers Home
  Administration an Office of Rental Housing Preservation (hereafter in
  this section referred to as the `Office'). The Office shall be headed by
  a Director designated by the Secretary of Agriculture.
  `(b) PURPOSES- The purposes of the Office are:
  `(1) to review and process applications under section 502(c) and section
  515(t) related to the preservation of rural rental housing;
  `(2) to provide technical or financial assistance to any other projects
  needing such assistance;
  `(3) to coordinate and direct all other activities related to the
  preservation of rural housing; and
  `(4) to monitor compliance of projects prepaid or receiving incentives
  under the Housing Act of 1949.'.
SEC. 713. DISASTER ASSISTANCE.
  Section 541(a)(1) of the Housing Act of 1949 (42 U.S.C. 1490q(a)(1))
  is amended in the first sentence by striking `amounts available under
  this title' and inserting `amounts made available to the Secretary by an
  appropriations Act for such purpose'.
SEC. 714. PROHIBITION ON TRANSFER OF RURAL HOUSING PROGRAMS.
  Section 501 of the Housing Act of 1949 (42 U.S.C. 1471) is amended by
  adding at the end the following new subsection:
  `(j) PROGRAM TRANSFERS- Notwithstanding any other provision of law, the
  Secretary shall not transfer any program authorized by this title to the
  Rural Development Administration.'.
SEC. 715. SITE ACQUISITION AND DEVELOPMENT.
  Section 524(a) of the Housing Act of 1949 (42 U.S.C.  1490d(a)) is amended--
  (1) by inserting `(1) IN GENERAL- ' before `The Secretary' in the first
  sentence; and
  (2) by adding at the end the following:
  `(2) REVOLVING FUNDS- The Secretary may make grants to nonprofit housing
  agencies to establish revolving loan funds for the acquisition and
  preparation of building sites for low-income housing. Any proceeds and
  repayments from such loans shall be returned to the revolving loan fund
  to be used for purposes related to this section. Loan funds and interest
  payments shall be used solely for the acquisition of land; the preparation
  of land for building sites; the payment of reimbursable legal and technical
  costs; and technical assistance and administrative costs, not to exceed
  10 percent of the fund.'.
SEC. 716. RECIPROCITY IN APPROVAL OF HOUSING SUBDIVISIONS AMONG FEDERAL
AGENCIES.
  (a) EXTENSION OF AUTHORITY- Section 535(b) of the Housing Act of 1949 (42
  U.S.C. 1490o(b)) is amended by striking the last sentence and inserting
  the following new sentence: `This subsection shall not apply after June
  15, 1993.'.
  (b) RETROACTIVITY- Any administrative approval of any housing subdivision
  made after the expiration of the 18-month period beginning on the date of the
  enactment of the Department of Housing and Urban Development Reform Act of
  1989 and before the date of the enactment of this Act is approved and shall
  be considered to have been lawfully made, but only if otherwise made in
  accordance with the provisions of section 535(b) of the Housing Act of 1949.
  (c) APPROVAL BY LOCAL, COUNTY, OR STATE AGENCIES- Section 535 of the Housing
  Act of 1949 (42 U.S.C. 1490o) is amended by adding at the end the following
  new subsection:
  `(d) For loans made under this title, the Secretary may accept subdivisions
  that have been approved by local, county, or State agencies.'.
TITLE VIII--COMMUNITY DEVELOPMENT
Subtitle A--Community Development Block Grants
SEC. 801. COMMUNITY DEVELOPMENT AUTHORIZATIONS.
  (a) COMMUNITY DEVELOPMENT BLOCK GRANTS- Section 103 of the Housing and
  Community Development Act of 1974 (42 U.S.C. 5303) is amended by striking
  the second and third sentences and inserting the following: `For purposes
  of assistance under section 106, there are authorized to be appropriated
  $4,000,000,000 for fiscal year 1993 and $4,168,000,000 for fiscal year 1994.
  (b) LIMITATION ON LOAN GUARANTEES- The fifth sentence of section 108(a)
  of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(a))
  is amended to read as follows: `Notwithstanding any other provision of
  law and subject only to the absence of qualified applicants or proposed
  activities and to the authority provided in this section, to the extent
  approved or provided in appropriation Acts, the Secretary shall enter into
  commitments to guarantee notes and obligations under this section with
  an aggregate principal amount of $2,000,000,000 for fiscal year 1993 and
  $2,000,000,000 for fiscal year 1994.'.
  (c) SPECIAL PURPOSE GRANTS-
  (1) SET-ASIDE- Section 107 of the Housing and Community Development Act
  of 1974 (42 U.S.C. 5307) is amended by striking `SEC. 107. (a)' and all
  that follows through the end of subsection (a) and inserting the following:
  `SEC. 107. (a) SET-ASIDE-
  `(1) IN GENERAL- For each fiscal year (except as otherwise provided in
  this paragraph), of the total amount provided in appropriation Acts under
  section 103 for the fiscal year, $60,000,000 shall be set aside for grants
  under subsection (b) for such year for the following purposes:
  `(A) $7,000,000 shall be available for grants under subsection (b)(1);
  `(B) $6,500,000 shall be available for grants under subsection (b)(3);
  `(C) $6,000,000 shall be available for grants under subsection (b)(5);
  `(D) $6,000,000 shall be available in fiscal year 1993 for grants under
  subsection (b)(7);
  `(E) $3,000,000 shall be available for grants under subsection (c);
  `(F) such sums as may be necessary shall be available for grants under
  paragraphs (2), (4), and (6) of subsection (b);
  `(G) $2,000,000 shall be available in fiscal year 1993 for a grant to the
  City of Bridgeport, Connecticut, subject to the approval of sufficient
  amounts in an appropriation Act and to binding commitments made by the
  City of Bridgeport and the State of Connecticut that the city and State,
  respectively, will supplement such amount with $2,000,000 of additional
  funds;
  `(H) $15,000,000 shall be available for grants under the Removal of
  Regulatory Barriers to Affordable Housing Act of 1992; and
  `(I) $7,500,000 shall be available to carry out the Community Outreach
  Partnership Act of 1992.
  `(2) TREATMENT OF GRANTS- Any grants made under this section shall be in
  addition to any other grants that may be made under this title to the same
  entities for the same purposes.'.
  (2) OTHER PURPOSES- Section 107(b) of the Housing and Community Development
  Act of 1974 (42 U.S.C. 5307(b)) is amended--
  (A) in paragraph (3), by striking `and' at the end;
  (B) in paragraph (4), by striking the period at the end and inserting a
  semicolon; and
  (C) by adding at the end the following:
  `(5) to States and units of general local government and institutions
  of higher education having a demonstrated capacity to carry out eligible
  activities under this title, except that the Secretary may make a grant
  under this paragraph only to a State or unit of general local government
  that jointly, with an institution of higher education, has prepared and
  submitted to the Secretary an application for such grant, as the Secretary
  shall by regulation require;
  `(6) to units of general local government in nonentitlement areas for
  planning community adjustments and economic diversification activities,
  which may include any eligible activities under section 105, required--
  `(A) by the proposed or actual establishment, realignment, or closure of
  a military installation,
  `(B) by the cancellation or termination of a Department of Defense contract
  or the failure to proceed with an approved major weapon system program, or
  `(C) by a publicly announced planned major reduction in Department of
  Defense spending that would directly and adversely affect a unit of general
  local government and will result in the loss of 1,000 or more full-time
  Department of Defense and contractor employee positions over a 5-year
  period in the unit of general local government and the surrounding area, or
if the Secretary (in consultation with the Secretary of Defense) determines
that an action described in subparagraph (A), (B), or (C) is likely to have
a direct and significant adverse consequence on the unit of general local
government; and
  `(7) for the purposes of rebuilding and revitalizing distressed areas of
  the Los Angeles metropolitan area.'.
  (3) REGULATIONS- Not later than the expiration of the 60-day period beginning
  on the date of the enactment of this Act, the Secretary of Housing and Urban
  Development shall issue proposed regulations to carry out section 107(b)(6)
  of the Housing and Community Development Act of 1974, as added by subsection
  (c)(2) of this section. The Secretary shall issue final regulations to
  carry out section 107(b)(6) not later than the expiration of the 120-day
  period beginning on the date of the enactment of this Act and after notice
  and opportunity for public comment pursuant to the provisions of section
  553 of title 5, United States Code (notwithstanding subsections (a)(2),
  (b)(B), and (d)(3) of such section). Such final regulations shall take
  effect 30 days after issuance.
  (4) CONFORMING AMENDMENT- Section 107(c) of the Housing and Community
  Development Act of 1974 (42 U.S.C. 5307(c)) is amended by striking `to the
  extent' and all that follows up to `grants to institutions' and inserting
  `make'.
  (d) GRANT ACTIVITIES- The special purpose grant of the City of Dubuque, Iowa,
  under Public Law 102-139 may be used for land acquisition, new construction,
  relocation assistance payments, and rehabilitation for housing of low-
  and moderate-income families.
SEC. 802. UNITS OF GENERAL LOCAL GOVERNMENT.
  (a) DEFINITION- Section 102(a)(1) of the Housing and Community Development
  Act of 1974 (42 U.S.C. 5302(a)(1)) is amended by striking `recognized by
  the Secretary' and inserting the following: `that, except as provided in
  section 106(d)(4), is recognized by the Secretary'.
  (b) GRANTS TO NONENTITLEMENT AREAS- Section 106(d) of the Housing and
  Community Development Act of 1974 (42 U.S.C. 5306(d)) is amended by
  inserting after paragraph (3) the following new paragraph:
  `(4) Any combination of units of general local governments may not
  be required to obtain recognition by the Secretary pursuant to section
  102(a)(1) to be treated as a single unit of general local government for
  purposes of this subsection.'.
SEC. 803. URBAN COUNTIES.
  Section 102(a)(6)(D) of the Housing and Community Development Act of 1974
  (42 U.S.C. 5302(a)(6)(D)) is amended--
  (1) in clause (iii), by striking `or' at the end;
  (2) in clause (iv), by striking the period at the end and inserting `;
  or'; and
  (3) by adding at the end the following new clause:
  `(v)(I) has a population of 175,000 or more (including the population of
  metropolitan cities therein), (II) before January 1, 1975, was designated by
  the Secretary of Defense pursuant to section 608 of the Military Construction
  Authorization Act, 1975 (Public Law 93-552; 88 Stat. 1763), as a Trident
  Defense Impact Area, and (III) has located therein not less than 1 unit
  of general local government that was classified as a metropolitan city and
  (a) for which county each such unit of general local government therein has
  relinquished its classification as a metropolitan city under the 6th sentence
  of paragraph (4), or (b) that has entered into cooperative agreements with
  each metropolitan city therein to undertake or to assist in the undertaking
  of essential community development and housing assistance activities.'.
SEC. 804. RETENTION OF PROGRAM INCOME.
  The first sentence of section 104(j) of the Housing and Community Development
  Act of 1974 (42 U.S.C. 5304(j)) is amended--
  (1) by striking `while the unit of general local government is participating
  in a community development program under this title'; and
  (2) by inserting before the period at the end the following: `; except that
  the Secretary may, by regulation, exclude from consideration as program
  income any amounts determined to be so small that compliance with this
  subsection creates an unreasonable administrative burden on the unit of
  general local government'.
SEC. 805. ECONOMIC DEVELOPMENT.
  (b) Section 105 of the Housing and Community Development Act of 1974 (42
  U.S.C. 5305) is amended by adding at the end the following new subsection:
  `(d) TRAINING PROGRAM- The Secretary shall implement, using
  funds recaptured pursuant to section 119(o), an on-going education and
  training program for officers and employees of the Department, especially
  officers and employees of area and other field offices of the Department,
  who are responsible for monitoring and administering activities pursuant to
  paragraphs (14), (15), and (17) of subsection (a) for the purpose of ensuring
  that (A) such personnel possess a thorough understanding of such activities;
  and (B) regulations and guidelines are implemented in a consistent fashion.'.
SEC. 806. EVALUATION, SELECTION, AND REVIEW OF ECONOMIC DEVELOPMENT PROJECTS.
  (a) GUIDELINES- Section 105 of the Housing and Community Development Act
  of 1974 (42 U.S.C. 5305), as amended by section 805, is amended by adding
  at the end the following new subsection:
  `(e) GUIDELINES FOR EVALUATING AND SELECTING ECONOMIC DEVELOPMENT PROJECTS-
  `(1) ESTABLISHMENT- The Secretary shall establish, by regulation, guidelines
  to assist grant recipients under this title to evaluate and select activities
  described in section 105(a) (14), (15), and (17) for assistance with grant
  amounts. The Secretary shall not base a determination of eligibility
  of the use of funds under this title for such assistance solely on the
  basis that the recipient fails to achieve one or more of the guidelines'
  objectives as stated in paragraph (2).
  `(2) PROJECT COSTS AND FINANCIAL REQUIREMENTS- The guidelines established
  under this subsection shall include the following objectives:
  `(A) The project costs of such activities are reasonable.
  `(B) To the extent practicable, reasonable financial support has been
  committed for such activities from non-Federal sources prior to disbursement
  of Federal funds.
  `(C) To the extent practicable, any grant amounts to be provided for such
  activities do not substantially reduce the amount of non-Federal financial
  support for the activity.
  `(D) Such activities are financially feasible.
  `(E) To the extent practicable, such activities provide not more than a
  reasonable return on investment to the owner.
  `(F) To the extent practicable, grant amounts used for the costs of such
  activities are disbursed on a pro rata basis with amounts from other sources.
  `(3) PUBLIC BENEFIT- The guidelines established under this subsection shall
  provide that the public benefit provided by the activity is appropriate
  relative to the amount of assistance provided with grant amounts under
  this title.'.
  (b) ASSISTANCE TO FOR-PROFIT ENTITIES- Section 105 of the Housing and
  Community Development Act of 1974 (42 U.S.C. 5305), as amended by subsection
  (a), is amended by inserting at the end the following new subsection:
  `(f) ASSISTANCE TO FOR-PROFIT ENTITIES- In any case in which an activity
  described in paragraph (17) of subsection (a) is provided assistance
  such assistance shall not be limited to activities for which no other
  forms of assistance are available or could not be accomplished but for
  that assistance.'.
  (c) GAO STUDY- The Comptroller General of the United States shall conduct
  a study of the use of grant amounts under title I of the Housing and
  Community Development Act of 1974 for activities described in paragraphs
  (14), (15), and (17) of section 105(a) of such Act. The study shall
  evaluate whether the activities for which such amounts are being used
  under such paragraphs further the goals and objectives of such program,
  as established in section 101 of such Act. The Comptroller General shall
  submit a report to the Congress regarding the findings of the study not
  later than the expiration of the 18-month period beginning on the date of
  the enactment of this Act. The report shall include recommendations of--
  (1) any administrative or legislative actions that may be taken to ensure
  that such grant amounts are properly and efficiently used for economic
  development activities; and
  (2) criteria by which to evaluate the effectiveness of activities assisted
  under paragraphs (14), (15), and (17) of such section 105(a).
  (d)  ENHANCING JOB QUALITY- Not later than 1 year after the date of enactment
  of this Act, the Comptroller General shall submit to the Congress a report
  on the types and quality of jobs created or retained through assistance
  provided pursuant to title I of the Housing and Community Development Act
  of 1974 and the extent to which projects and activities assisted under that
  title enhance the upward mobility and future earning capacity of low- and
  moderate-income persons who are benefited by such projects and activities.
  (e) REBUILDING DISTRESSED NEIGHBORHOODS- Section 105(c) of the Housing
  and Community Development Act of 1974 (42 U.S.C. 5305(c)) is amended by
  adding at the end the following new paragraph:
  `(4) For the purposes of subsection (c)(1)(C)--
  `(A) if an employee resides in, or the assisted activity through which he
  or she is employed, is located in a census tract that meets the Federal
  enterprise zone eligibility criteria, the employee shall be presumed to
  be a person of low- or moderate-income; or
  `(B) if an employee resides in a census tract where not less than 70 percent
  of the residents have incomes at or below 80 percent of the area median,
  the employee shall be presumed to be a person of low or moderate income.'.
SEC. 807. ELIGIBLE ACTIVITIES.
  (a) ADDITIONAL ELIGIBLE ACTIVITIES- Section 105(a) of the Housing and
  Community Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
  (1) in paragraph (8), by inserting before the semicolon at the end the
  following: `, and except that of any amount of assistance under this title
  (including program income) in each of fiscal years 1993 through 1997 to the
  City of Los Angeles and County of Los Angeles, each such unit of general
  government may use not more than 25 percent in each such fiscal year for
  activities under this paragraph';
  (2) in paragraph (19), by striking `and' at the end;
  (3) by redesignating paragraph (20) as paragraph (25); and
  (4) by inserting after paragraph (19) the following new paragraphs:
  `(20) provision of technical assistance to public or nonprofit entities to
  increase the capacity of such entities to carry out eligible neighborhood
  revitalization or economic development activities, which assistance
  shall not be considered a planning cost as defined in paragraph (12)
  or administrative cost as defined in paragraph (13);
  `(21) housing services, such as housing counseling, energy auditing,
  preparation of work specifications, loan processing, inspections, tenant
  selection, management of tenant-based rental assistance, and other services
  related to assisting owners, tenants, contractors, and other entities,
  participating or seeking to participate in housing activities authorized
  under this section, or under title II of the Cranston-Gonzalez National
  Affordable Housing Act, except that activities under this paragraph shall
  be subject to any limitation on administrative expenses imposed by any law;
  `(22) provision of assistance by recipients under this title to institutions
  of higher education having a demonstrated capacity to carry out eligible
  activities under this subsection for carrying out such activities;
  `(23) provision of assistance to public and private organizations, agencies,
  and other entities (including nonprofit and for-profit entities) to enable
  such entities to facilitate economic development by--
  `(A) providing credit (including providing direct loans and loan guarantees,
  establishing revolving loan funds, and facilitating peer lending programs)
  for the establishment, stabilization, and expansion of microenterprises;
  `(B) providing technical assistance, advice, and business support services
  (including assistance, advice, and support relating to developing business
  plans, securing funding, conducting marketing, and otherwise engaging
  in microenterprise activities) to owners of microenterprises and persons
  developing microenterprises; and
  `(C) providing general support (such as peer support programs and counseling)
  to owners of microenterprises and persons developing microenterprises;
  `(24) activities necessary to make essential repairs and to pay operating
  expenses necessary to maintain the habitability of housing units acquired
  through tax foreclosure proceedings in order to prevent abandonment
  and deterioration of such housing in primarily low- and moderate-income
  neighborhoods; and'.
  (b) DIRECT HOMEOWNERSHIP ASSISTANCE- Section 907(b)(2) of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 5305 note)
  is amended--
  (1) by striking `October 1, 1992' and inserting `October 1, 1994';
  (2) by striking `October 1, 1993' and inserting `October 1, 1995'; and
  (3) by striking `(18)', `(19)', and `(20)' and inserting `(23)', `(24)',
  and `(25)', respectively.
  (c) MICROENTERPRISE AND SMALL BUSINESS DEVELOPMENT INITIATIVE-
  (1) IN GENERAL- Section 105 of the Housing and Community Development Act
  of 1974 (42 U.S.C. 5305), as amended by section 806, is further amended
  by adding at the end the following new subsection:
  `(g) MICROENTERPRISE AND SMALL BUSINESS PROGRAM REQUIREMENTS- In developing
  program requirements and providing assistance pursuant to paragraph (17) of
  subsection (a) to a microenterprise or small business, the Secretary shall--
  `(1) take into account the special needs and limitations arising from the
  size of the entity; and
  `(2) not consider training, technical assistance, or other support services
  costs provided to small businesses or microenterprises or to grantees
  and subgrantees to develop the capacity to provide such assistance, as
  a planning cost pursuant to section 105(a)(12) or an administrative cost
  pursuant to section 105(a)(13).'.
  (2) DEFINITIONS- Section 102(a) of the Housing and Community Development Act
  of 1974 (42 U.S.C. 5302(a)) is amended by adding at the end the following
  new paragraphs:
  `(22) The term `microenterprise' means a commercial enterprise that has
  5 or fewer employees, 1 or more of whom owns the enterprise.
  `(23) The term `small business' means a business that meets the criteria
  set forth in section 3(a) of the Small Business Act.'.
  (3) SENSE OF THE CONGRESS- It is the sense of the Congress that each grantee
  under title I of the Housing and Community Development Act of 1974 should
  reserve 1 percent of any grant amounts the grantee receives in each fiscal
  year for the purpose of providing assistance under section 105(a)(23) of such
  Act to facilitate economic development through commercial microenterprises.
  (4) REPORT- Not later than 18 months after the date of enactment of this Act,
  the Secretary shall submit to the Congress a report on the effectiveness
  of assistance provided through title I of the Housing and Community
  Development Act of 1974 in promoting development of microenterprises,
  including a review of any statutory or regulatory provision that impedes
  the development of microenterprises.
  (d) LOANS OF CDBG FUNDS- Section 105(a)(14) of the Housing and Community
  Development Act of 1974 (42 U.S.C. 5305(a)(14)) is amended by inserting
  before `activities' the following: `provision of assistance including loans
  (both interim and long-term) and grants for'.
  (e) CDBG CODE ENFORCEMENT- Section 105(a)(3) of the Housing and Community
  Development Act of 1974 is amended by striking `improvements and' and
  inserting `or private improvements or'.
  (f) NEIGHBORHOOD-BASED NONPROFIT ORGANIZATIONS- Section 105(a)(15) of
  the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)(15))
  is amended by inserting after `corporations,' the following: `nonprofit
  organizations serving the development needs of the communities in
  nonentitlement areas,'.
SEC. 808. REFERENCE TO FAIR HOUSING ACT.
  Sections 104(b)(2), 106(d)(5)(B), and 107(e)(1) of the Housing and Community
  Development Act of 1974 (42 U.S.C. 5304(b)(2), 5306(d)(5)(B), and 5307(e)(1))
  are each amended by striking `Public Law 88-352 and Public Law 90-284'
  and inserting `the Civil Rights Act of 1964 and the Fair Housing Act'.
SEC. 809. ELIGIBILITY OF ENTERPRISE ZONES.
  Section 105(a)(13) of the Housing and Community Development Act of 1974 is
  amended by inserting immediately after `(13)' the following: `payment of
  reasonable administrative costs related to establishing and administering
  federally approved enterprise zones and'.
SEC. 810. ASSISTANCE FOR COLONIAS.
  (a) ELIGIBLE ACTIVITIES- Section 916 of the Cranston-Gonzalez National
  Affordable Housing Act (42 U.S.C. 5306 note) is amended--
  (1) by adding at the end of subsection (b) the following new paragraph:
  `(3) OTHER IMPROVEMENTS- Other activities eligible under section 105 of
  the Housing and Community Development Act of 1974 designed to meet the
  needs of residents of colonias.'; and
  (2) in subsection (f), by striking `and 1993' and inserting `1993, and 1994'.
  (b) DEFINITION OF COLONIA- Section 916(e)(1) of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 5306 note) is amended--
  (1) by striking subparagraph (C);
  (2) by redesignating subparagraph (D) as subparagraph (C); and
  (3) by striking subparagraph (E) and inserting the following new
  subparagraph:
  `(D) was in existence as a colonia before the date of the enactment of
  the Cranston-Gonzalez National Affordable Housing Act.'.
SEC. 811. STATE SET-ASIDE FOR TECHNICAL ASSISTANCE.
  Section 106(d) of the Housing and Community Development Act of 1974 (42
  U.S.C. 5306(d)) is amended by inserting after paragraph (4), as added by
  section 802, the following:
  `(5) From the amounts received under paragraph (1) for distribution in
  nonentitlement areas, the State may deduct an amount, not to exceed 1
  percent of the amount so received, to provide technical assistance to
  local governments and nonprofit program recipients.'.
SEC. 812. COMMUNITY DEVELOPMENT PLANS AND REPORTS.
  (a) IN GENERAL- Subsection (l) of section 104 of the Housing and Community
  Development Act of 1974, as added by section 922 of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 5304(l)), is amended to read
  as follows:
  `(m) COMMUNITY DEVELOPMENT PLANS-
  `(1) IN GENERAL- Prior to the receipt in any fiscal year of a grant from
  the Secretary under subsection (b), (d)(1), or (d)(2)(B) of section 106,
  each recipient shall have prepared and submitted in accordance with
  this subsection and in such standardized form as the Secretary shall, by
  regulation, prescribe a description of its priority nonhousing community
  development needs eligible for assistance under this title.
  `(2) LOCAL GOVERNMENTS- In the case of a recipient that is a unit of
  general local government--
  `(A) prior to the submission required by paragraph (1), the recipient
  shall, to the extent practicable, notify adjacent units of general local
  government and solicit the views of citizens on priority nonhousing
  community development needs; and
  `(B) the description required under paragraph (1) shall be submitted to
  the Secretary, the State, and any other unit of general local government
  within which the recipient is located, in such standardized form as the
  Secretary shall, by regulation, prescribe.
  `(3) STATES- In the case of a recipient that is a State, the description
  required by paragraph (1)--
  `(A) shall include only the needs within the State that affect more than
  one unit of general local government and involve activities typically
  funded by such States under this title; and
  `(B) shall be submitted to the Secretary in such standard form as the
  Secretary, by regulation, shall prescribe.
  `(4) EFFECT OF SUBMISSION- A submission under this subsection shall not
  be binding with respect to the use or distribution of amounts received
  under section 106.'.
  (b) CONFORMING AMENDMENTS- Section 104(b)(4) of the Housing and Community
  Development Act of 1974 (42 U.S.C. 5304(b)(4)) is amended--
  (1) by inserting `pursuant to subsection (m)' before the first comma; and
  (2) by striking `and housing'.
SEC. 813. DELAY USE OF 1990 CENSUS HOUSING DATA TO EXAMINE EFFECT ON TARGETING
FOR CDBG FORMULA.
  Notwithstanding any other provision of law, for fiscal year 1993, no data
  derived from the 1990 Decennial Census, except those relating to population
  and poverty, shall be taken into account for purposes of the allocation
  of amounts under section 106 of the Housing and Community Development Act
  of 1974.
Subtitle B--Other Community Development Programs
SEC. 831. NEIGHBORHOOD REINVESTMENT CORPORATION.
  (a) AUTHORIZATION OF APPROPRIATIONS- The first sentence of section 608(a)(1)
  of the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8107(a)) is
  amended to read as follows: `There are authorized to be appropriated to
  the corporation to carry out this title $29,476,000 for fiscal year 1993
  and $30,713,992 for fiscal year 1994.'.
  (b) EXPANDED PROGRAMS- The matter preceding subparagraph (A) of
  section 608(a)(2) of the Neighborhood Reinvestment Corporation Act (42
  U.S.C. 8107(a)(2)) is amended by striking `each of the fiscal years 1991
  and 1992' and inserting `any fiscal year'.
SEC. 832. NEIGHBORHOOD DEVELOPMENT PROGRAM.
  (a) AUTHORIZATION- Section 123(g) of the Housing and Urban-Rural Recovery
  Act of 1983 (42 U.S.C. 5318 note) is amended to read as follows:
  `(g) AUTHORIZATION- Of the amounts made available for assistance under
  section 103 of the Housing and Community Development Act of 1974, $1,000,000
  for fiscal year 1993 (in addition to other amounts provided for such fiscal
  year) and $3,000,000 for fiscal year 1994 shall be available to carry out
  this section.'.
  (b) PERMANENT PROGRAM- Section 123 of the Housing and Urban-Rural Recovery
  Act of 1983 (42 U.S.C. 5318 note) is amended--
  (1) by striking the section heading and inserting the following new heading:
`JOHN HEINZ NEIGHBORHOOD DEVELOPMENT PROGRAM';
  (2) by striking `demonstration program' each place it appears and inserting
  `program';
  (3) in subsection (b)(1), by striking `determine the feasibility of
  supporting' and inserting `support';
  (4) in subsection (e)(3), by inserting after `year' the following: `,
  except that, if appropriations for this section exceed $3,000,000, the
  Secretary may pay not more than $75,000 to any participating neighborhood
  development organization';
  (5) in subsection (e)(6)--
  (A) in subparagraph (C), by inserting `and' after the semicolon at the end;
  (B) by striking subparagraph (D);
  (C) by redesignating subparagraph (E) as subparagraph (D); and
  (D) in subparagraph (D), as so redesignated, by striking `demonstration'
  and inserting `program';
  (6) by striking subsection (f) and inserting the following new subsection:
  `(f) The Secretary shall submit a report to the Congress, not later than 3
  months after the end of each fiscal year in which payments are made under
  this section, regarding the program under this section. The report shall
  contain a summary of the activities carried out under this section during
  such fiscal year and any findings, conclusions, and recommendations for
  legislation regarding the program.'; and
  (7) by adding at the end the following new subsection:
  `(h) SHORT TITLE- This section may be cited as the `John Heinz Neighborhood
  Development Act'.'.
  (c) COMPLIANCE WITH CHAS AND COMMUNITY DEVELOPMENT PLANS- Section
  123(e)(5)(A) of the Housing and Urban-Rural Recovery Act of 1983 (42
  U.S.C. 5318 note) is amended by striking `housing and community development
  plans of such unit' and inserting `comprehensive housing affordability
  strategy of such unit approved under section 105 of the Cranston-Gonzalez
  National Affordable Housing Act or the statement of community development
  activities and community development plans of the unit submitted under
  section 104(m) of the Housing and Community Development Act of 1974'.
  (d) ELIGIBLE NEIGHBORHOOD DEVELOPMENT ORGANIZATION- Section 123(a)(2)
  of the Housing and Urban-Rural Recovery Act of 1983 (42 U.S.C. 5318 note)
  is amended--
  (1) in subparagraph (A), by inserting `(i)' after `(A)';
  (2) in subparagraph (E), by striking the period at the end and inserting
  `; or';
  (3) by redesignating subparagraphs (B) through (E) as clauses (ii) through
  (v), respectively; and
  (4) by adding at the end the following new subparagraph:
  `(B) any facility that provides small entrepreneurial business with
  affordable shared support services and business development services and
  meets the requirements of subparagraph (A).'.
  (e) DEFINITIONS- Section 123(a) of the Housing and Urban-Rural Recovery
  Act of 1983 (42 U.S.C. 5318 note) is amended--
  (1) by striking subparagraph (2)(A)(iv) (as so redesignated by subsection
  (d) of this section) and inserting the following new clause:
  `(iv) an organization that operates within an area that--
  `(I) meets the requirements for Federal assistance under section 119 of
  the Housing and Community Development Act of 1974;
  `(II) is designated as an enterprise zone under Federal law;
  `(III) is designated as an enterprise zone under State law and recognized
  by the Secretary for purposes of this section as a State enterprise zone; or
  `(IV) is a qualified distressed community within the meaning of section
  233(b)(1) of the Bank Enterprise Act of 1991; and';
  (2) by redesignating paragraph (3) as paragraph (4); and
  (3) by inserting before paragraph (4) (as so redesignated) the following
  new paragraph:
  `(3) The term `neighborhood development funding organization' means--
  `(A) a depository institution the accounts of which are insured pursuant
  to the Federal Deposit Insurance Act or the Federal Credit Union Act,
  and any subsidiary (as such term is defined in section 3(w) of the Federal
  Deposit Insurance Act) thereof;
  `(B) a depository institution holding company and any subsidiary thereof
  (as such term is defined in section 3(w) of the Federal Deposit Insurance
  Act); or
  `(C) a company at least 75 percent of the common stock of which is owned
  by one or more insured depository institutions or depository institution
  holding companies.'.
  (f) COORDINATION WITH COMMUNITY DEVELOPMENT FUNDING ORGANIZATIONS- Section
  123 of the Housing and Urban-Rural Recovery Act of 1983 (42 U.S.C. 5318
  note) is amended--
  (1) in subsection (b)(1), by inserting `, and from neighborhood development
  funding organizations,' after `neighborhoods';
  (2) in subsection (b)(3)--
  (A) in subparagraph (B), by striking `and' at the end;
  (B) in subparagraph (C), by striking the period and inserting the
  following: `, especially in cooperation with a neighborhood development
  funding organization, except that an eligible neighborhood development
  organization shall be deemed to have the full benefit of the cooperation of
  a neighborhood development funding organization if the eligible neighborhood
  development organization--
  `(i) is located in an area described in subsection (a)(2)(A)(iv) that does
  not contain a neighborhood development funding organization; or
  `(ii) demonstrates to the satisfaction of the Secretary that it has been
  unable to obtain the cooperation of any neighborhood development funding
  organization in such area despite having made a good faith effort to obtain
  such cooperation; and'; and
  (C) by adding at the end the following new subparagraph:
  `(D) specify a strategy for increasing the capacity of the organization.';
  (3) in subsection (c)(3), by inserting before the semicolon the following:
  `and by the extent of participation in the proposed activities by a
  neighborhood development funding organization that has a branch or office
  in the neighborhood, except that an eligible neighborhood development
  organization shall be deemed to have the full benefit of the participation of
  a neighborhood development funding organization if the eligible neighborhood
  development organization--
  `(A) is located in an neighborhood that does not contain a branch or office
  of a neighborhood development funding organization; or
  `(B) demonstrates to the satisfaction of the Secretary that it has been
  unable to obtain the participation of any neighborhood development funding
  organization that has a branch or office in the neighborhood despite having
  made a good faith effort to obtain such participation'; and
  (4) in subsection (e)(1), by inserting `, and from neighborhood development
  funding organizations,' after `neighborhood'.
  (g) ADMINISTRATIVE CHANGES- Section 123 of the Housing and Urban-Rural
  Recovery Act of 1983 (42 U.S.C. 5318 note) is amended--
  (1) in subsection (a)(2)(A)(iii), as so redesignated by subsection (d)
  of this section, by striking `three years' and inserting `one year'; and
  (2) in subsection (b)(2), by striking `Not more than 30 per centum' and
  inserting `For fiscal year 1993 and thereafter, not more than 50 percent'.
SEC. 833. STUDY REGARDING HOUSING TECHNOLOGY RESEARCH.
  (a) STUDY- The Secretary of Housing and Urban Development, through the
  Assistant Secretary for Policy Development and Research, shall conduct a
  study of--
  (1) the extent of Federal, other public, and private basic research in
  the United States in housing technology, including design and construction
  techniques and methodology, smart building technology, area and neighborhood
  planning, and other areas relating to the preservation and production of
  affordable housing and livable communities;
  (2) the extent of competitiveness of the United States in the field of
  basic housing technology research in comparison with other countries that
  are substantially involved in trade with the United States, taking into
  consideration the balance of trade, the degree of government support of
  private research activities, and the degree of fragmentation of research; and
  (3) the types of research projects regarding basic housing technology
  conducted by such other countries, the results of such research, and the
  extent of success in applying and marketing such results.
  (b) REPORT- The Secretary of Housing and Urban Development shall submit
  a report to the Congress describing the results of the study conducted
  under this section not later than September 30, 1993.
SEC. 834. DESIGNATION OF ENTERPRISE ZONES.
  (a) IN GENERAL- Section 701 of the Housing and Community Development Act
  of 1987 (42 U.S.C. 11501) is amended--
  (1) in subsection (a)(4)(B), by striking `the effective date of the
  regulations described in subparagraph (A) occurs' and inserting `the date
  of the enactment of the Housing and Community Development Act of 1992
  occurs'; and
  (2) in subsection (c)(3)(B), by striking `this Act' and inserting `the
  Housing and Community Development Act of 1992'.
  (b) REPORT- Section 702 of the Housing and Community Development Act of
  1987 (42 U.S.C. 11502) is amended by inserting `pursuant to the amendments
  made by section 834 of the Housing and Community Development Act of 1992'
  before the first comma.
Subtitle C--Miscellaneous Programs
SEC. 851. COMMUNITY OUTREACH ACT.
  (a) SHORT TITLE- This section may be cited as the `Community Outreach
  Partnership Act of 1992'.
  (b) PURPOSE- The Secretary shall carry out, in accordance with this
  section, a 5-year demonstration program to determine the feasibility of
  facilitating partnerships between institutions of higher education and
  communities to solve urban problems through research, outreach, and the
  exchange of information.
  (c) GRANT PROGRAM-
  (1) IN GENERAL- The Secretary is authorized to make grants to public and
  private nonprofit institutions of higher education to assist in establishing
  or carrying out research and outreach activities addressing the problems
  of urban areas.
  (2) USE OF GRANTS- Grants under this Act shall be used to establish and
  operate Community Outreach Partnership Centers (hereafter in this section
  referred to as `Centers') which shall--
  (A) conduct competent and qualified research and investigations on
  theoretical or practical problems in large and small cities; and
  (B) facilitate partnerships and outreach activities between institutions
  of higher education, local communities, and local governments to address
  urban problems.
  (3) SPECIFIC PROBLEMS- Research and outreach activities assisted under this
  Act shall focus on problems associated with housing, economic development,
  neighborhood revitalization, infrastructure, health care, job training,
  education, crime prevention, planning, community organizing, and other
  areas deemed appropriate by the Secretary.
  (d) APPLICATION- Any public or private nonprofit institution of higher
  education may submit an application for a grant under this section in
  such form and containing such information as the Secretary may require
  by regulation.
  (e) SELECTION CRITERIA-
  (1) IN GENERAL- The Secretary shall select recipients of grants under this
  section on the basis of the following criteria:
  (A) The demonstrated research and outreach resources available to the
  applicant for carrying out the purposes of this section.
  (B) The capability of the applicant to provide leadership in solving
  community problems and in making national contributions to solving long-term
  and immediate urban problems.
  (C) The demonstrated commitment of the applicant to supporting  urban
  research and outreach programs by providing matching contributions for
  any Federal assistance received.
  (D) The demonstrated ability of the applicant to disseminate results of
  research and successful strategies developed through outreach activities
  to other Centers and communities served through the demonstration program.
  (E) The projects and activities that the applicant proposes to carry out
  under the grant.
  (F) The effectiveness of the applicant's strategy to provide outreach
  activities to communities.
  (G) The extent of need in the communities to be served by the Centers.
  (H) Other criteria deemed appropriate by the Secretary.
  (2) PREFERENCE- The Secretary shall give preference to institutions
  of higher education that undertake research and outreach activities by
  bringing together knowledge and expertise in the various social science
  and technical disciplines that relate to urban problems.
  (f) FEDERAL SHARES- The Federal share of a grant under this section shall
  not be more than--
  (1) 50 percent of the cost of establishing and operating a Center's research
  activities; and
  (2) 75 percent of the cost of establishing and operating a Center's
  outreach activities.
  (g) NON-FEDERAL SHARES- The non-Federal share of a grant may include
  cash, or the value of non-cash contributions, equipment, or other in-kind
  contributions deemed appropriate by the Secretary.
  (h) RESPONSIBILITIES- A Center established under this section shall--
  (1) employ the research and outreach resources of its sponsoring institution
  of higher education to solve specific urban problems identified by
  communities served by the Center;
  (2) establish outreach activities in areas identified in the grant
  application as the communities to be served;
  (3) establish a community advisory committee comprised of representatives of
  local institutions and residents of the communities to be served to assist
  in identifying local needs and advise on the development and implementation
  of strategies to address those issues;
  (4) coordinate outreach activities in communities to be served by the Center;
  (5) facilitate public service projects in the communities served by
  the Center;
  (6) act as a clearinghouse for the dissemination of information;
  (7) develop instructional programs, convene conferences, and provide
  training for local community leaders, when appropriate; and
  (8) exchange information with other Centers.
  (i) NATIONAL ADVISORY COUNCIL-
  (1) ESTABLISHMENT- The Secretary shall establish a national advisory council
  (hereafter in this section referred to as the `council') to--
  (A) disseminate the results of research and outreach activities carried
  out under this section;
  (B) act as a clearinghouse between grant recipients and other institutions
  of higher education; and
  (C) review and evaluate programs carried out by grant recipients.
  (2) MEMBERS- The council shall be composed of 12 members to be appointed
  by the Secretary as follows--
  (A) 3 representatives of State and local governments;
  (B) 3 representatives of institutions of higher education that receive
  grants under this section;
  (C) 3 individuals or representatives of organizations that possess
  significant expertise in urban issues; and
  (D) 3 representatives from community advisory committees created pursuant
  to this section.
  (3) VACANCIES- A vacancy in the membership of the council shall be filled
  in the manner in which the original appointment was made.
  (4) COMPENSATION- Members of the council shall serve without pay.
  (5) CHAIRMAN- The council shall elect a member to serve as chairperson of
  the council.
  (6) MEETINGS- The council shall meet at least biannually and at such other
  times as the chairman may designate.
  (j) NATIONAL CLEARINGHOUSE- The Secretary shall establish a national
  clearinghouse to disseminate information resulting from the research and
  successful outreach activities developed through the Centers to grant
  recipients and other interested institutions of higher education.
  (k) AUTHORIZATIONS- The sums set aside by section 107 of the Housing and
  Community Development Act of 1974 for the purpose of this section shall
  be available--
  (1) to enable Centers to carry out research and outreach activities;
  (2) to establish and operate the national clearinghouse to be established
  under subsection (j).
  (l) REPORTING-
  (1) IN GENERAL- The Secretary of Housing and Urban Development shall submit
  an annual report to the Committee on Banking, Housing, and Urban Affairs
  of the Senate and the Committee on Banking, Finance and Urban Affairs of
  the House of Representatives.
  (2) CONTENTS- The report under paragraph (1) shall contain a summary of the
  activities carried out under this section during the preceding fiscal year,
  and findings and conclusions drawn from such activities.
SEC. 852. COMPUTERIZED DATABASE OF COMMUNITY DEVELOPMENT NEEDS.
  (a) ESTABLISHMENT OF DEMONSTRATION PROGRAM- Not later than the expiration
  of the 1-year period beginning on the date appropriations for the purposes
  of this section are made available, the Secretary of Housing and Urban
  Development (hereafter in this section referred to as the `Secretary')
  shall establish and implement a demonstration program to determine the
  feasibility of assisting States and units of general local government to
  develop methods, utilizing contemporary computer technology, to--
  (1) monitor, inventory, and maintain current listings of the community
  development needs of the States and units of general local government; and
  (2) coordinate strategies within States (especially among various units
  of general local government) for meeting such needs.
  (b) INTEGRATED DATABASE SYSTEM AND COMPUTER MAPPING TOOL-
  (1) DEVELOPMENT AND PURPOSES- In carrying out the program under this section,
  the Secretary shall provide for the development of an integrated database
  system and computer mapping tool designed to efficiently (A) collect,
  store, process, and retrieve information relating to priority nonhousing
  community development needs within States, and (B) coordinate strategies
  for meeting such needs. The integrated database system and computer
  mapping tool shall be designed in a manner to coordinate and facilitate
  the preparation of community development plans under section 104(m)(1)
  of the Housing and Community Development Act of 1974 and to process any
  information necessary for such plans.
  (2) AVAILABILITY TO STATES- The Secretary shall make the integrated database
  system and computer mapping tool developed pursuant to this subsection
  available to States without charge.
  (3) COORDINATION WITH EXISTING TECHNOLOGY- The Secretary shall, to the
  extent practicable, utilize existing technologies and coordinate such
  activities with existing data systems to prevent duplication.
  (c) TECHNICAL ASSISTANCE- Under the program under this section, the
  Secretary shall provide consultation and advice to States and units of
  general local government regarding the capabilities and advantages of the
  integrated database system and computer mapping tool developed pursuant to
  subsection (b) and assistance in installing and using the database system
  and mapping tool.
  (d) GRANTS-
  (1) AUTHORITY AND PURPOSE- The Secretary shall, to the extent amounts
  are made available under appropriation Acts pursuant to subsection (g),
  make grants to States for capital costs relating to installation and use
  of the integrated database system and computer mapping tool developed
  pursuant to subsection (b).
  (2) LIMITATIONS- The Secretary may not make more than one grant under this
  subsection to any single State. The Secretary may not make a grant under
  this subsection to any single State in an amount exceeding $1,000,000.
  (3) APPLICATION AND SELECTION- The Secretary shall provide for the form
  and manner of applications for grants under this subsection. The Secretary
  shall establish criteria for the selection of States which have submitted
  applications to receive grants under this section and shall select recipients
  according to such criteria, which shall give priority to States having, on
  a long-term basis (as determined by the Secretary), levels of unemployment
  above the national average level.
  (e) STATE COORDINATION OF LOCAL NEEDS- Each State that receives a grant
  under subsection (d) shall annually submit to the Secretary a report
  containing a summary of the priority nonhousing community development
  needs within the State.
  (f) REPORTS BY SECRETARY- The Secretary shall annually submit to
  the Committees on Banking, Finance and Urban Affairs of the House of
  Representatives and Banking, Housing, and Urban Affairs of the Senate,
  a report containing a summary of the information submitted for the year
  by States pursuant to subsection (e), which shall describe the priority
  nonhousing community development needs within such States.
  (g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  for each of the fiscal years 1993 and 1994, $10,000,000 to carry out the
  program established under this section.
SEC. 853. COMMUNITY INVESTMENT CORPORATION DEMONSTRATION.
  (a) SHORT TITLE- This section may be cited as the `Community Investment
  Corporation Demonstration Act'.
  (b) COMMUNITY INVESTMENT CORPORATION DEMONSTRATION-
  (1) FINDINGS- The Congress finds that--
  (A) the Nation's urban and rural communities face critical social
  and economic problems arising from lack of growth; growing numbers of
  low-income persons and persons living in poverty; lack of employment and
  other opportunities to improve the quality of life of these residents;
  and lack of capital for business located in, or seeking to locate in
  these communities;
  (B) the future well-being of the United States and its residents depends
  on the restoration and maintenance of viable local economies, and will
  require increased public and private investment in low-income housing,
  business development, and economic and community development activities,
  and technical assistance to local organizations carrying out revitalization
  strategies;
  (C) lack of expertise and technical capacity can significantly limit
  the ability of residents and local institutions to effectively carry out
  revitalization strategies;
  (D) the Federal Government needs to develop new models for facilitating
  local revitalization activities;
  (E) indigenous community-based financial institutions play a significant
  role in identifying and responding to community needs; and
  (F) institutions, such as South Shore Bank (Chicago, Illinois), Southern
  Development Bancorporation (Arkadelphia, Arkansas), Center for Community
  Self Help (Durham, North Carolina), and Community Capital Bank (Brooklyn,
  New York), with a primary mission of promoting community development have
  proven their ability to promote revitalization and are appropriate models
  for restoring economic stability and growth in distressed communities
  and neighborhoods.
  (2) PURPOSES- The demonstration program carried out under this section
  shall--
  (A) improve access to capital for initiatives which benefit residents and
  businesses in targeted geographic areas; and
  (B) test new models for bringing credit and investment capital to targeted
  geographic areas and low-income persons in such areas through the provision
  of assistance for capital, development services, and technical assistance.
  (3) DEFINITIONS- As used in this section--
  (A) the term `Federal financial supervisory agency' means--
  (i) the Comptroller of the Currency with respect to national banks;
  (ii) the Board of Governors of the Federal Reserve System with respect to
  State-chartered banks which are members of the Federal Reserve System and
  bank holding companies;
  (iii) the Federal Deposit Insurance Corporation with respect to
  State-chartered banks and savings banks which are not members of the Federal
  Reserve System and the deposits of which are insured by the Federal Deposit
  Insurance Corporation;
  (iv) the National Credit Union Administration Board with respect to insured
  credit union associations; and
  (v) the Office of Thrift Supervision with respect to insured savings
  associations and savings and loan holding  companies that are not bank
  holding companies;
  (B) the term `community investment corporation' means an eligible
  organization selected by the Secretary to receive assistance pursuant to
  this section;
  (C) the term `development services' means activities that are consistent with
  the purposes of this section and which support and strengthen the lending
  and investment activities undertaken by eligible organizations including--
  (i) the development of real estate;
  (ii) administrative activities associated with the extension of credit or
  necessary to make an investment;
  (iii) marketing and management assistance;
  (iv) business planning and counseling services; and
  (v) other capacity building activities which enable borrowers, prospective
  borrowers, or entities in which eligible organizations have invested, or
  expect to invest, to improve the likelihood of success of their activities;
  (D) the term `eligible organization' means an entity--
  (i) that is organized as--
  (I) a depository institution holding company as defined in section 3 of
  the Federal Deposit Insurance Act (12 U.S.C. 1813); or
  (II) a nonprofit organization--
  (aa) that is organized under State law;
  (bb) has no part of its net earnings inuring to the benefit of any member,
  founder, contributor, or other person;
  (cc) complies with standards of financial accountability acceptable to
  the Secretary; and
  (dd) is affiliated with a nondepository lending institution; or is affiliated
  with a regulated financial institution but is not a subsidiary thereof;
  (ii) that has as its primary mission the revitalization of a targeted
  geographic area;
  (iii) that maintains, through significant representation on its governing
  board and otherwise, accountability to community residents;
  (iv) that has principals active in the implementation of its programs who
  possess significant experience in lending and the development of affordable
  housing, small business development, or community revitalization;
  (v) that directly or through a subsidiary or affiliate carries out
  development services; and
  (vi) that will match any assistance received dollar-for-dollar with
  non-Federal sources of funds;
  (E) the term `equity investment' means a capital contribution through the
  purchase of nonvoting common stock or through equity grants or contributions
  to capital reserves or surplus, subject to terms and conditions satisfactory
  to the Secretary;
  (F) the term `low-income person' means a person in a family whose income
  does not exceed 80 percent of the median income for the area, as determined
  by the Secretary with adjustments for smaller and larger families;
  (G) the term `regulated financial institution' means an insured depository
  institution (as defined in section 3 of the Federal Deposit Insurance Act
  (12 U.S.C. 1813), or an insured credit union as defined in section 101 of
  the Federal Credit Union Act (12 U.S.C. 1752));
  (H) the term `Secretary' means the Secretary of Housing and Urban
  Development;
  (I) the term `targeted geographic area' means a geographically contiguous
  area of chronic economic distress, as measured by unemployment, growth
  lag, poverty, lag in growth of per capita income, extent of blight and
  disinvestment, fiscal distress, or other indicators deemed appropriate
  by the Secretary, that has been identified by an eligible organization as
  the area to be served by it; and
  (J) an entity is an `affiliate' of another entity if the first entity
  controls, is controlled by, or is under common control with the other entity.
  (4) SELECTION CRITERIA- The Secretary shall select eligible organizations
  from among applications submitted to participate in the demonstration
  program, using selection criteria based on--
  (A) the capacity of the eligible organizations to carry out the purposes
  of this section;
  (B) the range and comprehensiveness of lending, investment strategies,
  and development services to be offered by the organizations directly or
  through subsidiaries and affiliates thereof;
  (C) the types of activities to be pursued, including lending and development
  of small business, agriculture, industrial, commercial, or residential
  projects;
  (D) the extent of need in the targeted geographic area to be served;
  (E) the experience and background of the principals at each eligible
  organization responsible for carrying out the purposes of this section;
  (F) the extent to which the eligible organizations directly or through
  subsidiaries and affiliates has successfully implemented other revitalization
  activities;
  (G) an appropriate distribution of eligible organizations among regions
  of the United States; and
  (H) other criteria determined to be appropriate by the Secretary and
  consistent with the purposes of this section.
  (5) PROGRAM ASSISTANCE- The Secretary shall--
  (A) carry out, in accordance with this section, a program to improve
  access to capital and demonstrate the feasibility of facilitating the
  revitalization of targeted geographic areas by providing assistance to
  eligible organizations;
  (B) accept applications from eligible organizations; and
  (C) select eligible organizations to receive assistance pursuant to this
  section.
  (6) ACTIVITIES REQUIRED- All eligible organizations receiving assistance
  pursuant to this section are required to engage in activities that provide
  access to capital for initiatives which benefit residents and businesses
  in targeted geographic areas.
  (7) CAPITAL ASSISTANCE-
  (A) IN GENERAL-
  (i) IN GENERAL- The Secretary shall make grants and loans to eligible
  organizations.
  (ii) LOANS- Assistance provided to a depository institution holding company
  that is an eligible organization as defined in paragraph (3)(D)(i)(I)
  shall be in the form of a loan to be repaid to the Secretary. The terms
  and conditions of each loan shall be determined by the Secretary based on
  the ability of such entity to repay, except that interest shall accrue at
  the current Treasury rate for obligations of comparable maturity.
  (iii) GRANTS OR LOANS- Assistance provided to an eligible organization that
  is a nonprofit organization, as defined in paragraph (3)(D)(i)(II), may
  be in the form of a grant or a loan. If an eligible organization that is a
  nonprofit organization uses assistance that it received under this section
  to provide assistance to a for-profit entity, the assistance provided by
  the nonprofit organization must be in the form of a loan with interest to
  be repaid to the nonprofit organization and the nonprofit organization must
  use the proceeds of the loan for activities consistent with this section.
  (B) ELIGIBLE ACTIVITIES- Capital assistance may only be used to support the
  following activities that facilitate revitalization of targeted geographic
  areas or that provide economic opportunities for low-income persons--
  (i) increasing the capital available for the purpose of making loans;
  (ii) providing funds for equity investments in projects;
  (iii) providing a portion of loan loss reserves of regulated financial
  institutions; and
  (iv) providing credit enhancement.
  (C) CAPITAL REQUIREMENTS- Any investment derived from assistance provided by
  the Secretary and made by an eligible organization to a regulated financial
  institution shall not be included as an asset in calculating compliance
  with applicable capital standards. Such standards shall be satisfied from
  sources other than assistance provided under this section.
  (D) AUTHORIZATION- There are authorized to be appropriated to carry
  out this paragraph $25,000,000 for fiscal year 1993 and $26,000,000 for
  fiscal year 1994 to be used to provide capital assistance to eligible
  organizations. Funds appropriated pursuant to this subparagraph shall
  remain available until expended.
  (8) DEVELOPMENT SERVICES AND TECHNICAL ASSISTANCE GRANTS-
  (A) IN GENERAL- The Secretary shall--
  (i) provide grants or loans to eligible organizations for the provision
  of development services that support and contribute to the success of the
  mission of such organizations; and
  (ii) provide, or contract to provide, technical assistance to eligible
  organizations to assist in establishing program activities that are
  consistent with the purposes of this section.
  (B) AUTHORIZATION- There are authorized to be appropriated to carry out
  this paragraph, $15,000,000 for fiscal year 1993 and $15,600,000 for fiscal
  year 1994. Funds appropriated pursuant to this subparagraph shall remain
  available until expended.
  (9) TRAINING PROGRAM-
  (A) IN GENERAL- The Secretary shall establish, or contract to establish,
  an ongoing training program to assist eligible organizations and their
  staffs in developing the capacity to carry out the purposes of this section.
  (B) AUTHORIZATION- There are authorized to be appropriated to carry out
  this paragraph $2,000,000 for fiscal year 1993 and $2,100,000 for fiscal
  year 1994. Funds appropriated pursuant to this subparagraph shall remain
  available until expended.
  (10) REPORTS- The Secretary shall determine the appropriate reporting
  requirements with which eligible organizations receiving assistance under
  this section must comply.
  (11) ADVISORY BOARD-
  (A) IN GENERAL- In establishing requirements to carry out the provisions
  of this section, and in considering applications under this section, the
  Secretary shall consult with an advisory board comprised of the following
  members:
  (i) the Administrator of the Small Business Administration;
  (ii) two representatives from among the Federal financial supervisory
  agencies who possess expertise in matters related to extending credit to
  persons in low-income communities;
  (iii) two representatives of organizations that possess expertise in
  development of low-income housing;
  (iv) two representatives of organizations that possess expertise in
  economic development;
  (v) two representatives of organizations that possess expertise in small
  business development;
  (vi) two representatives from organizations that possess expertise in the
  needs of low-income communities; and
  (vii) two representatives from community investment corporations receiving
  assistance under this section.
  (B) CHAIRPERSON- The Board shall elect from among its members a chairperson
  who shall serve for a term of 2 years.
  (C) TERMS- The members shall serve for terms of 3 years which shall expire
  on a staggered basis.
  (D) REIMBURSEMENT- The members shall serve without additional compensation
  but shall be reimbursed for travel, per diem, and other necessary expenses
  incurred in the performance of their duties as members of the advisory board,
  in accordance with sections 5702 and 5703 of title 5, United States Code.
  (E) DESIGNATED REPRESENTATIVES- A member who is necessarily absent from
  a meeting of the board, or of a committee of the board, may participate
  in such meeting through a duly designated representative who is serving
  in the same agency or organization as the absent member.
  (F) QUORUM- The presence of a majority of members, or their representatives,
  shall constitute a quorum.
  (12) EVALUATION AND REPORT- The Secretary shall submit to the Committee
  on Banking, Housing, and Urban Affairs of the Senate and the Committee
  on Banking, Finance and Urban Affairs of the House of Representatives an
  annual report containing a summary of the activities carried out under this
  section during the fiscal year and any preliminary findings or conclusions
  drawn from the demonstration program.
  (13) NO BENEFIT RULE- To the extent that assistance is provided to an
  eligible organization that is a depository institution holding company, the
  Secretary shall ensure, to the extent practicable, that such assistance does
  not inure to the benefit of directors, officers, employees and stockholders.
  (14) REGULATIONS- (A) The Secretary shall issue such regulations as may
  be necessary to carry out the provisions of this subsection.
  (B) The appropriate Federal financial supervisory agency, by regulation
  or order--
  (i) may restrict any regulated financial institution's receipt of an
  extension of credit from, or investment by, an eligible organization;
  (ii) may restrict the making, by a regulated financial institution
  or holding company, of an extension of credit to, or investment in, an
  eligible organization; and
  (iii) shall prohibit any transaction that poses an undue risk to the
  affected deposit insurance fund.
  (C) To the extent practicable, the Secretary and the Federal financial
  supervisory agencies shall coordinate the development of regulations and
  other program guidelines.
  (15) SAFETY AND SOUNDNESS OF INSURED DEPOSITORIES- Nothing in this section
  shall limit the applicability of other law relating to the safe and sound
  operation and management of a regulated financial institution (or a holding
  company) affiliated with an eligible organization or receiving assistance
  provided under this section.
  (16) EFFECTIVE DATE- This section shall become effective 6 months from
  the date of enactment of this Act.
SEC. 854. EMERGENCY ASSISTANCE FOR LOS ANGELES.
  (a) IN GENERAL- Of the funds made available under 107(b) of the Housing and
  Community Development Act of 1974 for purposes of this section, $3,000,000
  shall be made available to each of the following:
  (1) A nonprofit community-based public benefit corporation which was created
  in response to the civil disturbances of April 29, 1992, through May 6,
  1992, in Los Angeles, California, with the support of the Speaker of the
  California State Assembly and community elected officials representing
  the affected areas.
  (2) A nonprofit public benefit corporation established by the Mayor of
  Los Angeles and the Governor of California.
  (b) USE OF FUNDS- Such funds shall be used to carry out a community
  revitalization strategy in areas for which the President, pursuant to title
  IV or V of the Robert T. Stafford Disaster Relief and Emergency Assistance
  Act, declared that a major disaster or emergency existed for the purposes of
  such Act, as a result of the civil disturbances involving acts of violence
  occurring on or after April 29, 1992, and before May 6, 1992.
  (c) STRATEGY- Such strategy shall--
  (1) include efforts to create jobs in distressed neighborhoods, spur
  community-based economic development, improve housing accessibility and
  affordability, and address other community development needs; and
  (2) be developed in consultation with low-income residents and community
  leaders in the distressed areas.
  (d) ELIGIBLE ACTIVITIES- Funds made available under this subsection may
  be used for eligible activities pursuant to section 105 of the Housing and
  Community Development Act of 1974 or to provide seed capital to nonprofit
  community development corporations to carry out the strategy developed in
  subsection (c)(2).
  (e) MATCH REQUIRED- Funds provided under this section shall be matched
  with private or public non-Federal funds in an amount not less than 50
  percent of the funds provided under this section.
TITLE IX--REGULATORY AND MISCELLANEOUS PROGRAMS
Subtitle A--Miscellaneous
SEC. 901. HUD RESEARCH AND DEVELOPMENT.
  Section 501 of the Housing and Urban Development Act of 1970 (12
  U.S.C. 1701z-1) is amended by striking the second sentence and all that
  follows and inserting the following new sentence: `There is authorized to
  be appropriated to carry out this title $35,000,000 for fiscal year 1993
  and $36,470,000 for fiscal year 1994.'.
SEC. 902. ADMINISTRATION OF DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
  (a) SPECIAL ASSISTANT FOR INDIAN AND ALASKA NATIVE PROGRAMS-
  (1) RESPONSIBILITIES- Section 4(e)(1) of the Department of Housing and
  Urban Development Act (42 U.S.C. 3533(e)(1)) is amended--
  (A) by inserting `(A)' after `(1)';
  (B) in the first sentence, by striking `responsible' and all that follows
  through `development' and inserting `located in the Office of the Assistant
  Secretary for Public and Indian Housing'; and
  (C) by adding at the end the following new subparagraphs:
  `(B) The Special Assistant for Indian and Alaska Native Programs shall be
  appointed based solely on merit and shall be covered under the provisions
  of title 5, United States Code, governing appointments in the competitive
  service.
  `(C) The Special Assistant for Indian and Alaska Native Programs shall be
  responsible for--
  `(i) administering, in coordination with the relevant office in the
  Department, the provision of housing assistance to Indian tribes or Indian
  housing authorities under each program of the Department that provides
  for such assistance;
  `(ii) administering the community development block grant program for
  Indian tribes under title I of the Housing and Community Development Act
  of 1974 and the provision of assistance to Indian tribes under such Act;
  `(iii) directing, coordinating, and assisting in managing any regional
  offices of the Department that administer Indian programs to the extent
  of such programs; and
  `(iv) coordinating all programs of the Department relating to Indian and
  Alaska Native housing and community development.
  `(D) The Secretary shall include in the annual report under section 8 a
  description of the extent of the housing needs for Indian families and
  community development needs of Indian tribes in the United States and the
  activities of the Department, and extent of such activities, in meeting
  such needs.'.
  (2) TRANSFER OF FUNCTIONS- Not later than the expiration of the 180-day
  period beginning on the date of the enactment of this Act, the Secretary
  of Housing and Urban Development shall transfer to the Special Assistant
  for Indian and Alaska Native Programs any functions and duties described in
  section 4(e)(1)(B) of the Department of Housing and Urban Development Act
  (as added by paragraph (1) of this subsection).
  (3) STAFF- Not later than the expiration of the 1-year period beginning on
  the date of the enactment of this Act, the Secretary of Housing and Urban
  Development shall transfer from offices within the Department of Housing
  and Urban Development to the office of the Special Assistant for Indian
  and Alaska Native Programs such staff, having experience and capacity to
  administer Indian housing and community development programs, as may be
  necessary and appropriate to assist the Special Assistant in carrying out
  the responsibilities under section 4(e)(1)(B) of the Department of Housing
  and Urban Development Act (as added by paragraph (1) of this subsection).
  (b) AVOIDANCE OF FORECLOSURE ON MORTGAGES HELD BY SECRETARY- Section 7(i)
  of the Department of Housing and Urban Development Act (42 U.S.C. 3535(i))
  is amended--
  (1) in paragraph (5), by inserting before the semicolon the following: `;
  except that with respect to any mortgage held by the Secretary, the Secretary
  shall, subject to the availability of amounts provided in appropriation
  Acts, implement the authority under this paragraph to reduce the interest
  rate on the mortgage to a rate not less than the rate for recently issued
  marketable obligations of the Treasury having a comparable maturity if (and
  to the extent that) such a reduction, when taken together with other actions
  authorized under the National Housing Act, is necessary to avoid foreclosure
  on the mortgage; and except that for any mortgage for which the interest
  rate is reduced pursuant to an appropriation under the preceding clause,
  if the Secretary determines that the income or ability of the mortgagor
  to make interest payments has increased, the Secretary may (not more than
  once for each such mortgage) increase such interest rate to a rate not
  exceeding the prevailing market rate, as determined by the Secretary'; and
  (2) in paragraph (6), by inserting before the period the following: `,
  including any provisions relating to the authority or requirements under
  paragraph (5)'.
  (c) PROGRAM MONITORING AND EVALUATION- The first sentence of section 7(r)(6)
  of the Department of Housing and Urban Development Act (42 U.S.C. 3535(r)(6))
  is amended to read as follows: `There are authorized to be appropriated
  to carry out this subsection such sums as may be necessary for fiscal year
  1993 and fiscal year 1994.'.
SEC. 903. PARTICIPANT'S CONSENT TO RELEASE OF INFORMATION.
  (a) IN GENERAL- Section 904 of the Stewart B. McKinney Homeless Assistance
  Amendments Act of 1988 (42 U.S.C. 3544) is amended by adding at the end
  the following new subsection:
  `(e) CONDITIONS OF RELEASE OF INFORMATION BY THIRD PARTIES- An applicant
  or participant under any program of the Department of Housing and Urban
  Development may not be required or requested to consent to the release
  of information by third parties as a condition of initial or continuing
  eligibility for participation in the program unless--
  `(1) the request for consent is made, and the information secured is
  maintained, in accordance with this section, section 552a of title 5,
  United States Code; and
  `(2) the consent that is requested is appropriately limited, with respect
  to time and information relevant and necessary to meet the requirements
  of this section.'.
  (b) FORMS-
  (1) NEW FORM- Not later than the expiration of the 180-day period beginning
  on the date of the enactment of this Act, the Secretary of Housing and Urban
  Development shall develop a release form that meets the requirements of
  section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act
  of 1988, as amended by this section. In developing the form, the Secretary
  shall consult with interested parties, which shall include not less than 2
  representatives of public housing agencies, 1 representative of a national
  tenant organization, 1 representative of a State tenant organization,
  and 1 representative of a legal group representing tenants.
  (2) EFFECT OF OLD FORM- During the period beginning upon the date of the
  enactment of this Act and ending upon implementation of the use of the
  form developed under paragraph (1), the benefits provided to an applicant
  or participant under any program of the Department of Housing and Urban
  Development, or eligibility for such benefits, may not be terminated,
  denied, suspended, or reduced because of any failure to sign any form
  authorizing the release of information from any third party (including
  Form HUD-9886), if the applicant or participant otherwise discloses all
  financial information relating to the application or recertification.
SEC. 904. NATIONAL INSTITUTE OF BUILDING SCIENCES.
  (a) TECHNICAL CORRECTION TO HOUSING AND COMMUNITY DEVELOPMENT ACT OF
  1974- Section 809 of the Housing and Community Development Act of 1974
  (12 U.S.C. 1701j-2) is amended--
  (1) by redesignating subsections (h) and (i) as subsections (i) and (j),
  respectively; and
  (2) by inserting after subsection (g) the material inserted by the amendment
  made by section 952(b)(2) of the Cranston-Gonzalez National Affordable
  Housing Act (Public Law 101-625; 104 Stat. 4418).
  (b) TECHNICAL CORRECTION TO NATIONAL HOUSING ACT- Section 809 of the
  National Housing Act is amended by striking subsection (h) (as added by
  section 952(b) of the Cranston-Gonzalez National Affordable Housing Act).
SEC. 905. FAIR HOUSING INITIATIVES PROGRAM.
  (a) FINDINGS- The Congress finds that--
  (1) in the past half decade, there have been major legislative and
  administrative changes in Federal fair housing and fair lending laws and
  substantial improvements in the Nation's understanding of discrimination
  in the housing markets;
  (2) in response to evidence of continuing housing discrimination, the
  Congress passed the Fair Housing Act Amendments of 1988, to provide for
  more effective enforcement of fair housing rights through judicial and
  administrative avenues and to expand the number of protected classes
  covered under Federal fair housing laws;
  (3) in the Financial Institutions Reform, Recovery and Enforcement Act
  of 1989, the Congress expanded the disclosure provisions under the Home
  Mortgage Disclosure Act to provide increased information on the mortgage
  lending patterns of financial institutions;
  (4) in the Americans with Disabilities Act of 1990, the Congress provided
  a clear and comprehensive national mandate for the elimination of
  discrimination against individuals with disabilities;
  (5) in 1991, data collected under the Home Mortgage Disclosure Act
  disclosed evidence of pervasive discrimination in the Nation's mortgage
  lending markets;
  (6) the Housing Discrimination Survey, released by the Department of Housing
  and Urban Development in 1991, found that Hispanic and African-American
  homeseekers experience some form of discrimination in at least half of
  their encounters with sales and rental agents;
  (7) the Fair Housing Initiatives Program should be revised and expanded
  to reflect the significant changes in the fair housing and fair lending
  area that have taken place since the Program's initial authorization in
  the Housing and Community Development Act of 1987;
  (8) continuing educational efforts by the real estate industry are a useful
  way to increase understanding by the public of their fair housing rights
  and responsibilities; and
  (9) the proven efficacy of private nonprofit fair housing enforcement
  organizations and community-based efforts makes support for these
  organizations a necessary component of the fair housing enforcement system.
  (b) IN GENERAL- Section 561 of the Housing and Community Development Act
  of 1987 (42 U.S.C. 3616 note) is amended--
  (1) by redesignating subsections (b) through (e) as subsections (e) through
  (h), respectively;
  (2) by inserting after subsection (a) the following new subsections:
  `(b) PRIVATE ENFORCEMENT INITIATIVES-
  `(1) IN GENERAL- The Secretary shall use funds made available under
  this subsection to conduct, through contracts with private nonprofit
  fair housing enforcement organizations, investigations of violations of
  the rights granted under title VIII of the Civil Rights Act of 1968, and
  such enforcement activities as appropriate to remedy such violations. The
  Secretary may enter into multiyear contracts and take such other action
  as is appropriate to enhance the effectiveness of such investigations and
  enforcement activities.
  `(2) ACTIVITIES- The Secretary shall use funds made available under
  this subsection to conduct, through contracts with private nonprofit fair
  housing enforcement organizations, a range of investigative and enforcement
  activities designed to--
  `(A) carry out testing and other investigative activities in accordance with
  subsection (b)(1), including building the capacity for housing investigative
  activities in unserved or underserved areas;
  `(B) discover and remedy discrimination in the public and private real
  estate markets and real estate-related transactions, including, but not
  limited to, the making or purchasing of loans or the provision of other
  financial assistance sales and rentals of housing and housing advertising;
  `(C) carry out special projects, including the development of prototypes
  to respond to new or sophisticated forms of discrimination against  persons
  protected under title VIII of the Civil Rights Act of 1968;
  `(D) provide technical assistance to local fair housing organizations, and
  assist in the formation and development of new fair housing organizations;
  and
  `(E) provide funds for the costs and expenses of litigation, including
  expert witness fees.
  `(c) FUNDING OF FAIR HOUSING ORGANIZATIONS-
  `(1) IN GENERAL- The Secretary shall use funds made available under this
  section to enter into contracts or cooperative agreements with qualified
  fair housing enforcement organizations, other private nonprofit fair
  housing enforcement organizations, and nonprofit groups organizing to
  build their capacity to provide fair housing enforcement, for the purpose
  of supporting the continued development or implementation of initiatives
  which enforce the rights granted under title VIII of the Civil Rights Act
  of 1968, as amended. Contracts or cooperative agreements may not provide
  more than 50 percent of the operating budget of the recipient organization
  for any one year.
  `(2) CAPACITY ENHANCEMENT- The Secretary shall use funds made available
  under this section to help establish, organize, and build the capacity of
  fair housing enforcement organizations, particularly in those areas of
  the country which are currently underserved by fair housing enforcement
  organizations as well as those areas where large concentrations of protected
  classes exist. For purposes of meeting the objectives of this paragraph,
  the Secretary may enter into contracts or cooperative agreements with
  qualified fair housing enforcement organizations. The Secretary shall
  establish annual goals which reflect the national need for private fair
  housing enforcement organizations.
  `(d) EDUCATION AND OUTREACH-
  `(1) IN GENERAL- The Secretary, through contracts with one or more qualified
  fair housing enforcement organizations, other fair housing enforcement
  organizations, and other nonprofit organizations representing groups of
  persons protected under title VIII of the Civil Rights Act of 1968, shall
  establish a national education and outreach program. The national program
  shall be designed to provide a centralized, coordinated effort for the
  development and dissemination of fair housing media products, including--
  `(A) public service announcements, both audio and video;
  `(B) television, radio and print advertisements;
  `(C) posters; and
  `(D) pamphlets and brochures.
The Secretary shall designate a portion of the amounts provided in subsection
(g)(4) for a national program specifically for activities related to the annual
national fair housing month. The Secretary shall encourage cooperation with
real estate industry organizations in the national education and outreach
program. The Secretary shall also encourage the dissemination of educational
information and technical assistance to support compliance with the housing
adaptability and accessibility guidelines contained in the Fair Housing Act
Amendments of 1988.
  `(2) REGIONAL AND LOCAL PROGRAMS- The Secretary, through contracts with
  fair housing enforcement organizations, other nonprofit organizations
  representing groups of persons protected under title VIII of the Civil
  Rights Act of 1968, State and local agencies certified by the Secretary
  under section 810(f) of the Fair Housing Act, or other public or private
  entities that are formulating or carrying out programs to prevent or
  eliminate discriminatory housing practices, shall establish or support
  education and outreach programs at the regional and local levels.
  `(3) COMMUNITY-BASED PROGRAMS- The Secretary shall provide funding to fair
  housing organizations and other nonprofit organizations representing groups
  of persons protected under title VIII of the Civil Rights Act of 1968,
  or other public or private entities that are formulating or carrying out
  programs to prevent or eliminate discriminatory housing practices, to support
  community-based education and outreach activities, including school, church,
  and community presentations, conferences, and other educational activities.';
  (3) in subsection (g), as redesignated by paragraph (1) by striking all in
  the first sentence after `section,' and inserting the following: `$21,000,000
  for fiscal year 1993 and $26,000,000 for fiscal year 1994, of which--
  `(1) not less than $3,820,000 for fiscal year 1993 and $8,500,000 for
  fiscal year 1994 shall be for private enforcement initiatives authorized
  under subsection (b), divided equally between activities specified under
  subsection (b)(1) and those specified under subsection (b)(2);
  `(2) not less than $2,230,000 for fiscal year 1993 and $8,500,000 for fiscal
  year 1994 shall be for qualified fair housing enforcement organizations
  authorized under subsection (c)(1);
  `(3) not less than $2,010,000 for fiscal year 1993 and $4,000,000 for
  fiscal year 1994 shall be for the creation of new fair housing enforcement
  organizations authorized under subsection (c)(2); and
  `(4) not less than $2,540,000 for fiscal year 1993 and $5,000,000 for
  fiscal year 1994 shall be for education and outreach programs authorized
  under subsection (d), to be divided equally between activities specified
  under subsection (d)(1) and those specified under subsections (d)(2) and
  (d)(3).'; and
  (4) by striking subsection (h), as redesignated by paragraph (1),  and
  inserting the following:
  `(h) QUALIFIED FAIR HOUSING ENFORCEMENT ORGANIZATION- (1) The term `qualified
  fair housing enforcement organization' means any organization that--
  `(A) is organized as a private, tax-exempt, nonprofit, charitable
  organization;
  `(B) has at least 2 years experience in complaint intake, complaint
  investigation, testing for fair housing violations and enforcement of
  meritorious claims; and
  `(C) is engaged in all the activities listed in paragraph (1)(B) at the
  time of application for assistance under this section.
An organization which is not solely engaged in fair housing enforcement
activities may qualify as a qualified fair housing enforcement organization,
provided that the organization is actively engaged in each of the activities
listed in subparagraph (B).
  `(2) The term `fair housing enforcement organization' means any organization
  that--
  `(A) meets the requirements specified in paragraph (1)(A);
  `(B) is currently engaged in the activities specified in paragraph (1)(B);
  `(C) upon the receipt of funds under this section will become engaged in
  all of the activities specified in paragraph (1)(B); and
  `(D) for purposes of funding under subsection (b), has at least 1 year of
  experience in the activities specified in paragraph (1)(B).
  `(i) PROHIBITION ON USE OF FUNDS- None of the funds authorized under this
  section may be used by the Secretary for purposes of settling claims,
  satisfying judgments or fulfilling court orders in any litigation action
  involving either the Department or housing providers funded by the
  Department. None of the funds authorized under this section may be used
  by the Department for administrative costs.
  `(j) REPORTING REQUIREMENTS- Not later than 180 days after the close of
  each fiscal year in which assistance under this section is furnished,
  the Secretary shall prepare and submit to the Congress a comprehensive
  report which shall contain--
  `(1) a description of the progress made in accomplishing the objectives
  of this section;
  `(2) a summary of all the private enforcement activities carried out under
  this section and the use of such funds during the preceding fiscal year;
  `(3) a list of all fair housing enforcement organizations funded under this
  section during the preceding fiscal year, identified on a State-by-State
  basis;
  `(4) a summary of all education and outreach activities funded under this
  section and the use of such funds during the preceding fiscal year; and
  `(5) any findings, conclusions, or recommendations of the Secretary as a
  result of the funded activities.'.
SEC. 906. NATIONAL COMMISSION ON MANUFACTURED HOUSING.
  (a) AUTHORIZATION OF APPROPRIATIONS- Section 943(f) of the Cranston-Gonzalez
  National Affordable Housing Act is amended to read as follows:
  `(f) AUTHORIZATION- Of the amount appropriated pursuant to section 501
  of the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-1),
  there shall be set aside to carry out this section $1,000,000 for fiscal
  year 1993.  Any amounts provided pursuant to this section shall remain
  available until expended.'.
  (b) FUNCTIONS OF THE COMMISSION- Section 943(d)(1) of the Cranston-Gonzalez
  National Affordable Housing Act is amended--
  (1) in subparagraph (G), by striking `and' at the end;
  (2) by adding after subparagraph (G) the following new subparagraphs:
  `(H) evaluate the extent to which manufacturers in compliance with Federal
  standards do and should comply with State implied or expressed warranty
  requirements;
  `(I) examine the feasibility of expanding and establishing standards
  governing manufactured home sales including transportation and on-site
  set up; and'; and
  (3) by redesignating subparagraph (H) as subparagraph (J).
  (c) EXTENSION OF TERMINATION DATE- Section 943(g) of the Cranston-Gonzalez
  National Affordable Housing Act is amended by striking `upon the expiration
  of the 9 months following the appointment of all the members under subsection
  (c)' and inserting `on October 1, 1993'.
  (d) STAFF- Section 943(e) of the Cranston-Gonzalez National Affordable
  Housing Act (Public Law 101-625; 104 Stat. 44134) is amended by adding at
  the end the following new paragraph:
  `(7) STAFF-
  `(A) EXECUTIVE DIRECTOR- The Commission shall appoint an executive director
  of the Commission who shall be compensated at a rate fixed by the Commission,
  but which may not exceed the rate established for level V of the Executive
  Schedule under title 5, United States Code.
  `(B) PERSONNEL- In addition to the executive director, the Commission
  may appoint and fix the compensation of such personnel as the Commission
  deems advisable, in accordance with the provisions of title 5, United
  States Code, governing appointments to the competitive service, and the
  provisions of chapter 51 and subchapter III of chapter 53 of such title,
  relating to classification and General Schedule pay rates.
  `(C) LIMITATION- This paragraph shall be effective only to the extent
  amounts are made available in appropriation Acts.'.
SEC. 907. MANUFACTURED HOUSING.
  Section 604 of the Housing and Community Development Act of 1974 (42
  U.S.C. 5403) is amended by adding at the end the following new subsection:
  `(j) The Secretary shall develop a new standard for hardboard panel siding on
  manufactured housing taking into account durability, longevity, consumer's
  costs for maintenance and any other relevant information pursuant to
  subsection (f).  The Secretary shall consult with the National Manufactured
  Home Advisory Council and the National Commission on Manufactured Housing
  in establishing the new standard.  The new performance standard developed
  shall ensure the durability of hardboard sidings for at least a normal
  life of a mortgage with minimum maintenance required.  Not later than 180
  days from the date of enactment of this subsection, the Secretary shall
  update the standards for hardboard siding.'.
SEC. 908. REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974.
  (a) APPLICABILITY TO MORTGAGE ORIGINATION- Section 3(3) of the Real
  Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(3)) is amended by
  inserting after `broker,' the following: `the origination of a federally
  related mortgage loan (including, but not limited to, the taking of loan
  applications, loan processing, and the underwriting and funding of loans),'.
  (b) APPLICABILITY TO SECOND MORTGAGES AND REFINANCINGS- Section 3(1)(A)
  of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(1)(A))
  is amended--
  (1) by inserting `or subordinate' after `first'; and
  (2) by inserting before the semicolon the following: `, including any
  such secured loan, the proceeds of which are used to prepay or pay off an
  existing loan secured by the same property'.
  (c) REGULATIONS- The Secretary of Housing and Urban Development shall
  issue regulations to implement the amendments made by this section not
  later than the expiration of the 180-day period beginning on the date of
  the enactment of this Act. The regulations shall be issued after notice
  and opportunity for public comment pursuant to the provisions of section
  553 of title 5, United States Code (notwithstanding subsections (a)(2),
  (b)(B), and (d)(3) of such section).
  (d) EFFECTIVE DATE- This section shall take effect on the date of enactment
  of this Act and shall not apply retroactively.
SEC. 909. COMMUNITY REINVESTMENT ACT OF 1977.
  The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended--
  (1) in section 804--
  (A) by inserting before the first sentence the following: `(a) IN GENERAL-
  '; and
  (B) by adding at the end the following new subsection:
  `(b) MAJORITY-OWNED INSTITUTIONS- In assessing and taking into account,
  under subsection (a), the record of a nonminority-owned and nonwomen-owned
  financial institution, the appropriate Federal financial supervisory agency
  may consider as a factor capital investment, loan participation, and other
  ventures undertaken by the institution in cooperation with minority- and
  women-owned financial institutions and low-income credit unions provided
  that these activities help meet the credit needs of local communities in
  which such institutions and credit unions are chartered.'; and
  (2) in section 808(a), by striking `shall be treated as' and inserting
  `may be a factor in determining whether the depository institution is'.
SEC. 910. REPORT ON COMMUNITY DEVELOPMENT LENDING.
  (a) IN GENERAL- Not later than 12 months after the date of enactment
  of this section, the Board of Governors of the Federal Reserve System,
  in consultation with the Comptroller of the Currency, the Chairman of
  the Federal Deposit Insurance Corporation, the Director of the Office
  of Thrift Supervision, and the Chairman of the National Credit Union
  Administration, shall submit a report to the Congress comparing residential,
  small business, and commercial lending by insured depository institutions
  in low-income, minority, and distressed neighborhoods to such lending in
  other neighborhoods.
  (b) CONTENTS OF REPORT- The report required by subsection (a) shall--
  (1) compare the risks and returns of lending in low-income, minority,
  and distressed neighborhoods with the risks and returns of lending in
  other neighborhoods;
  (2) analyze the reasons for any differences in risk and return between
  low-income, minority, and distressed neighborhoods and other neighborhoods;
  and
  (3) if the risks of lending in low-income, minority, and distressed
  neighborhoods exceed the risks of lending in other neighborhoods, recommend
  ways of mitigating those risks.
SEC. 911. SUBSIDY LAYERING REVIEW.
  (a) IN GENERAL- The Secretary shall establish guidelines for housing credit
  agencies, as defined under section 42 of the Internal Revenue Code of 1986,
  to implement the requirements of section 102(d) of the Department of Housing
  and Urban Development Reform Act of 1989 (42 U.S.C. 3545(d)) for projects
  receiving assistance within the jurisdiction of the Department of Housing and
  Urban Development and under section 42 of the Internal Revenue Code of 1986.
  (b) IN PARTICULAR- The guidelines established pursuant to subsection
  (a) shall--
  (1) require that the amount of equity capital contributed by investors to
  a project partnership is not less than the amount generally contributed
  by investors in current market conditions, as determined by the housing
  credit agency; and
  (2) require that project costs, including developer fees, are within a
  reasonable range, taking into account project size, project characteristics,
  project location and project risk factors, as determined by the housing
  credit agency.
  (c) EFFECTIVE DATE- As of January 1, 1993, a housing credit agency shall
  carry out the responsibilities of section 102(d) of the Housing  and
  Urban Development Reform Act for projects allocated a low-income housing
  tax credit pursuant to section 42 of the Internal Revenue Code of 1986 if
  such agency certifies to the Secretary that it is properly implementing
  the guidelines established under subsection (a). The Secretary may revoke
  the responsibility delegated in the preceding sentence if the Secretary
  determines that a housing credit agency has failed to properly implement
  such guidelines.
  (d) APPLICABILITY- Section 102(d) of the Department of Housing and Urban
  Development Reform Act of 1989 (42 U.S.C. 3545(d)) shall apply only to
  projects for which an application for assistance or insurance was filed
  after the date of enactment of the Housing and Urban Development Reform Act.
SEC. 912. SOLAR ASSISTANCE FINANCING ENTITY.
  (a) ESTABLISHMENT- The Secretary of Housing and Urban Development shall
  establish within the Department of Housing and Urban Development the Solar
  Assistance Financing Entity (in this section referred to as the `Entity').
  (b) PURPOSE- The purpose of the Entity shall be to assist in financing
  solar and renewable energy capital investments and projects for eligible
  buildings under subsection (c).
  (c) ELIGIBLE BUILDINGS- The Entity may provide assistance under this
  section only for the following buildings:
  (1) SINGLE FAMILY HOUSING- Any building consisting of 1 to 4 dwelling
  units that has a system for heating or cooling, or both.
  (2) MULTIFAMILY HOUSING- Any building consisting of more than 4 dwelling
  units that has a system for heating or cooling, or both.
  (3) COMMERCIAL BUILDINGS- Any building used primarily to carry on a business
  (including any nonprofit business) that is not used primarily for the
  manufacture or production of raw materials, products, or agricultural
  commodities.
  (4) SCHOOLS, HOSPITALS, AND AGRICULTURAL BUILDINGS- Any school, any hospital,
  and any building used exclusively in connection with the harvesting,
  storage, or drying of agricultural commodities.
  (5) OTHER BUILDINGS- Any other building of a type that the Entity considers
  appropriate.
  (d) FINANCING OPTIONS- Assistance provided under this section by the
  Entity may be provided only for programs for financing solar and renewable
  energy capital investments and projects, which may include programs for
  making loans, making grants, reducing the principal obligations of loans,
  prepayment of interest on loans, purchase and sale of loans and advances of
  credit, providing loan guarantees, providing loan downpayment assistance,
  and providing rebates and other incentives for the purchase and installation
  of solar and renewable energy measures.
  (e) AUTHORITY TO LEVERAGE OTHER FUNDS- The Entity may encourage or require
  programs receiving assistance under this section to supplement the assistance
  received under this section with amounts from other public and private
  sources, and, in making assistance under this section available, may give
  preference to programs that leverage amounts from such other sources.
  (f) PROVISION OF ASSISTANCE- The Entity shall provide assistance under
  this section through State agencies responsible for developing State
  energy conservation plans pursuant to section 362 of the Energy Policy and
  Conservation Act, or any other entity or agency authorized to specifically
  carry out the purposes of this section.
  (g) REGULATIONS- Not later than the expiration of the 12-month period
  beginning on the date of the enactment of this Act, the Secretary of Housing
  and Urban Development, in consultation with the Secretary of Energy, shall
  issue any regulations necessary to carry out this section, which shall ensure
  maximum flexibility in utilizing amounts made available under this section.
  (h) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to carry out this section $10,000,000 for fiscal year 1993 and $10,420,000
  for fiscal year 1994.  Such sums are to be available until expended.
  (i) REPEALS-
  (1) SOLAR ENERGY AND ENERGY CONSERVATION BANK ACT- Subtitle A of title V
  of the Energy Security Act (12 U.S.C. 3601 et seq.) is repealed.
  (2) FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER ACT- Sections 315 and 316
  of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723g,
  1723h) are repealed.
SEC. 913. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO LABOR WAGE RATES
UNDER HOUSING PROGRAMS.
  (a) SUPPORTIVE HOUSING FOR THE ELDERLY- Section 202(j)(5) of the Housing
  Act of 1959 (12 U.S.C. 1701q(j)(5)), as amended by section 801 of the
  Cranston-Gonzalez National Affordable Housing Act, is amended to read
  as follows:
  `(5) LABOR-
  `(A) IN GENERAL- The Secretary shall take such action as may be necessary
  to ensure that all laborers and mechanics employed by contractors
  and subcontractors in the construction of housing with 12 or more units
  assisted under this section shall be paid wages at rates not less than the
  rates prevailing in the locality involved for the corresponding classes of
  laborers and mechanics employed on construction of a similar character,
  as determined by the Secretary of Labor in accordance with the Act of
  March 3, 1931 (commonly known as the Davis-Bacon Act).
  `(B) EXEMPTION- Subparagraph (A) shall not apply to any individual who--
  `(i) performs services for which the individual volunteered;
  `(ii)(I) does not receive compensation for such services; or
  `(II) is paid expenses, reasonable benefits, or a nominal fee for such
  services; and
  `(iii) is not otherwise employed at any time in the construction work.'.
  (b) SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES- Section 811(j)(6) of
  the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(j)(6))
  is amended--
  (1) by striking `(6) LABOR STANDARDS- The Secretary' and inserting the
  following:
  `(6) LABOR STANDARDS-
  `(A) IN GENERAL- The Secretary';
  (2) by striking `assisted under this section and designed for dwelling
  use by 12 or more persons with disabilities' and inserting `with 12 or
  more units assisted under this section';
  (3) by inserting `commonly known as' before `the Davis-Bacon Act';
  (4) by striking `; but the Secretary' and all that follows through
  `undertaking the construction'; and
  (5) by adding at the end the following new subparagraph:
  `(B) EXEMPTION- Subparagraph (A) shall not apply to any individual who--
  `(i) performs services for which the individual volunteered;
  `(ii)(I) does not receive compensation for such services; or
  `(II) is paid expenses, reasonable benefits, or a nominal fee for such
  services; and
  `(iii) is not otherwise employed at any time in the construction work.'.
SEC. 914. ENERGY EFFICIENT MORTGAGES.
  (a) DEFINITION OF ENERGY EFFICIENT MORTGAGE- Section 104 of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704), as
  amended by section 210(a)(1) of this Act, is further amended by adding at
  the end the following new paragraph:
  `(25) The term `energy efficient mortgage' means a mortgage that provides
  financing incentives for the purchase of energy efficient homes, or that
  provides financing incentives to make energy efficiency improvements
  in existing homes by incorporating the cost of such improvements in the
  mortgage.'.
  (b) UNIFORM MORTGAGE FINANCING PLAN FOR ENERGY EFFICIENCY- Section 946 of
  the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12712 note)
  is amended--
  (1) in subsection (a), by striking `mortgage financing incentives for
  energy efficiency' and inserting  `energy efficient mortgages (as such
  term is defined in section 104 of this Act)'; and
  (2) in subsection (b)--
  (A) in the second sentence, by inserting `, but not be limited to,' after
  `include'; and
  (B) by inserting after the period at the end of the following new
  sentence: `The Task Force shall determine whether notifying potential
  home purchasers of the availability of energy efficient mortgages would
  promote energy efficiency in residential buildings, and if so, the Task
  Force shall recommend appropriate notification guidelines, and agencies
  and organizations referred to in the preceding sentence are authorized to
  implement such guidelines.'.
SEC. 915. ECONOMIC OPPORTUNITIES FOR LOW- AND VERY LOW-INCOME PERSONS.
  Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u)
  is amended to read as follows:
`SEC. 3. ECONOMIC OPPORTUNITIES FOR LOW- AND VERY LOW-INCOME PERSONS.
  `(a) FINDINGS- The Congress finds that--
  `(1) Federal housing and community development programs provide State and
  local governments and other recipients of Federal financial assistance
  with substantial funds for projects and activities that produce significant
  employment and other economic opportunities;
  `(2) low- and very low-income persons, especially recipients of government
  assistance for housing, often have restricted access to employment and
  other economic opportunities;
  `(3) the employment and other economic opportunities generated by projects
  and activities that receive Federal housing and community development
  assistance offer an effective means of empowering low- and very low-income
  persons, particularly persons who are recipients of government assistance
  for housing; and
  `(4) prior Federal efforts to direct employment and other economic
  opportunities generated by Federal housing and community development
  programs to low- and very low-income persons have not been fully effective
  and should be intensified.
  `(b) POLICY- It is the policy of the Congress and the purpose of this section
  to ensure that the employment and other economic opportunities generated
  by Federal financial assistance for housing and community development
  programs shall, to the greatest extent feasible, be directed toward low-
  and very low-income persons, particularly those who are recipients of
  government assistance for housing.
  `(c) EMPLOYMENT-
  `(1) PUBLIC AND INDIAN HOUSING PROGRAM-
  `(A) IN GENERAL- The Secretary shall require that public and Indian housing
  agencies, and their contractors and subcontractors, make their best efforts,
  consistent with existing Federal, State, and local laws and regulations,
  to give to low- and very low-income persons the training and employment
  opportunities generated by development assistance provided pursuant to
  section 5 of the United States Housing Act of 1937, operating assistance
  provided pursuant to section 9 of that Act, and modernization grants
  provided pursuant to section 14 of that Act.
  `(B) PRIORITY- The efforts required under subparagraph (A) shall be directed
  in the following order of priority:
  `(i) To residents of the housing developments for which the assistance
  is expended.
  `(ii) To residents of other developments managed by the public or Indian
  housing agency that is expending the assistance.
  `(iii) To participants in Youthbuild programs receiving assistance under
  subtitle D of title IV of the Cranston-Gonzalez National Affordable
  Housing Act.
  `(iv) To other low- and very low-income persons residing within the
  metropolitan area (or nonmetropolitan county) in which the assistance
  is expended.
  `(2) OTHER PROGRAMS-
  `(A) IN GENERAL- In other programs that provide housing and community
  development assistance, the Secretary shall ensure that, to the greatest
  extent feasible, and consistent with existing Federal, State, and local
  laws and regulations, opportunities for training and employment arising
  in connection with a housing rehabilitation (including reduction and
  abatement of lead-based paint hazards), housing construction, or other
  public construction project are given to low- and very low-income persons
  residing within the metropolitan area (or nonmetropolitan county) in which
  the project is located.
  `(B) PRIORITY- Where feasible, priority should be given to low- and very
  low-income persons residing within the service area of the project or
  the neighborhood in which the project is located and to participants in
  Youthbuild programs receiving assistance under subtitle D of title IV of
  the Cranston-Gonzalez National Affordable Housing Act.
  `(d) CONTRACTING-
  `(1) PUBLIC AND INDIAN HOUSING PROGRAM-
  `(A) IN GENERAL- The Secretary shall require that public and Indian housing
  agencies, and their contractors and subcontractors, make their best efforts,
  consistent with existing Federal, State, and local laws and regulations,
  to award contracts for work to be performed in connection with development
  assistance provided pursuant to section 5 of the United States Housing Act
  of 1937, operating assistance provided pursuant to section 9 of that Act,
  and modernization grants provided pursuant to section 14 of that Act, to
  business concerns that provide economic opportunities for low- and very
  low-income persons.
  `(B) PRIORITY- The efforts required under subparagraph (A) shall be directed
  in the following order of priority:
  `(i) To business concerns that provide economic opportunities for residents
  of the housing development for which the assistance is provided.
  `(ii) To business concerns that provide economic opportunities for residents
  of other housing developments operated by the public and Indian housing
  agency that is providing the assistance.
  `(iii) To Youthbuild programs receiving assistance under subtitle D of
  title IV of the Cranston-Gonzalez National Affordable Housing Act.
  `(iv) To business concerns that provide economic opportunities for low-
  and very low-income persons residing within the metropolitan area (or
  nonmetropolitan county) in which the assistance is provided.
  `(2) OTHER PROGRAMS-
  `(A) IN GENERAL- In providing housing and community development assistance
  pursuant to other programs, the Secretary shall ensure that, to the
  greatest extent feasible, and consistent with existing Federal, State,
  and local laws and regulations, contracts awarded for work to be performed
  in connection with a housing rehabilitation (including reduction and
  abatement of lead-based paint hazards), housing construction, or other
  public construction project are given to business concerns that provide
  economic opportunities for low- and very low-income persons residing within
  the metropolitan area (or nonmetropolitan county) in which the assistance
  is expended.
  `(B) PRIORITY- Where feasible, priority should be given to business concerns
  which provide economic opportunities for low- and very low-income persons
  residing within the service area of the project or the neighborhood in
  which the project is located and to Youthbuild programs receiving assistance
  under subtitle D of title IV of the Cranston-Gonzalez National Affordable
  Housing Act.
  `(e) DEFINITIONS- For the purposes of this section the following definitions
  shall apply:
  `(1) LOW- AND VERY LOW-INCOME PERSONS- The terms `low-income persons' and
  `very low-income persons' have the same meanings given the terms `low-income
  families' and `very low-income families', respectively, in section 3(b)(2)
  of the United States Housing Act of 1937.
  `(2) BUSINESS CONCERN THAT PROVIDES ECONOMIC OPPORTUNITIES- The term `a
  business concern that provides economic opportunities' means a business
  concern that--
  `(A) provides economic opportunities for a class of persons that has a
  majority controlling interest in the business;
  `(B) employs a substantial number of such persons; or
  `(C) meets such other criteria as the Secretary may establish.
  `(f) COORDINATION WITH OTHER FEDERAL AGENCIES- The Secretary shall
  consult with the Secretary of Labor, the Secretary of Health and Human
  Services, the Secretary of Commerce, the Administrator of the Small Business
  Administration, and such other Federal agencies as the Secretary determines
  are necessary to carry out this section.
  `(g) REGULATIONS- Not later than 180 days after the date of enactment
  of the National Affordable Housing Act Amendments of 1992, the Secretary
  shall promulgate regulations to implement this section.'.
SEC. 916. STUDY OF THE EFFECTIVENESS OF SECTION 3 OF THE HOUSING AND URBAN
DEVELOPMENT ACT OF 1968.
  (a) IN GENERAL- The Secretary of Housing and Urban Development shall submit
  to the Congress, not later than 1 year after the date of the enactment of
  this Act, a report describing--
  (1) the Secretary's efforts to enforce section 3 of the Housing and Urban
  Development Act of 1968;
  (2) the barriers to full implementation of section 3 of the Housing and
  Urban Development Act of 1968;
  (3) the anticipated costs and benefits of full implementation of section
  3 of the Housing and Urban Development Act of 1968; and
  (4) recommendations for legislative changes to enhance the effectiveness
  of section 3 of the Housing and Urban Development Act of 1968.
  (b) CONTENTS-
  (1) ENFORCEMENT- The description under subsection (a)(1) of the Secretary's
  enforcement efforts shall include, at a minimum--
  (A) a discussion of how responsibility for implementing section 3 of the
  Housing and Urban Development Act of 1968 is allocated within the Department
  of Housing and Urban Development;
  (B) a discussion of the status of existing regulations implementing such
  section 3;
  (C) a discussion of ongoing efforts to enforce current regulations;
  (D) a list of the programs under the responsibility of the Secretary with
  respect to which the Secretary is enforcing section 3; and
  (E) a separate description of the activities carried out under section 3
  with respect to each of these programs.
  (2) IMPEDIMENTS- The discussion under subsection (a)(2) of the external
  impediments to effective enforcement of section 3 of the Housing and Urban
  Development Act of 1968 shall include, at a minimum, a discussion of--
  (A) any lack of necessary training for targeted employees and technical
  assistance to targeted businesses;
  (B) any barriers created by Federal, State, or local procurement regulations
  or other laws;
  (C) any difficulties in coordination with labor unions;
  (D) any difficulties in coordination with other implicated Federal
  agencies; and
  (E) any lack of resources on the part of recipients of assistance who are
  responsible for carrying out section 3 of the Housing and Urban Development
  Act of 1968.
  (c) CONSULTATION- In preparing the report under this subsection, the
  Secretary shall consult with the Secretary of Labor, the Secretary of
  Commerce, the Secretary of Health and Human Services, the Administrator of
  the Small Business Administration, other appropriate Federal officials,
  and recipients of Federal housing and community development assistance
  who are responsible for executing section 3 of the Housing and Urban
  Development Act of 1968.
SEC. 917. INDIAN HOUSING AUTHORITIES.
  There is authorized to be appropriated $500,000 for fiscal year 1993 and
  $521,000 for fiscal year 1994 to a nonprofit organization under section
  501(c)(3) of the Internal Revenue Code of 1986 that has been in existence
  since 1975 and that provides training, technical assistance, and information
  to Indian housing authorities, Indian tribal governments, and other groups.
  These sums shall be used by such nonprofit organization to--
  (1) provide technical assistance and training to Indian housing authorities;
  (2) improve the administrative capacities of Indian housing authorities; and
  (3) provide for other activities designed to improve Indian housing
  conditions.
SEC. 918. STUDY REGARDING FORECLOSURE ALTERNATIVES.
  (a) IN GENERAL- The Secretary of Housing and Urban Development shall conduct
  a study to review and analyze alternatives to foreclosure for homeowners
  whose principal residences are subject to federally-related mortgages (in
  connection with federally related mortgage loans, as such term is defined
  in section 3 of the Real Estate Settlement Procedures Act of 1974) under
  which the homeowner is in default. In conducting the study, the Secretary--
  (1) may consult with any appropriate Federal agencies that make, insure,
  or guarantee mortgage loans relating to 1- to 4-family dwellings and with
  the Federal National Mortgage Association, the Federal Home Loan Mortgage
  Corporation, the Government National Mortgage Association, and the Federal
  Agricultural Mortgage Corporation; and
  (2) shall review and assess the adequacy, with respect to providing
  alternatives to foreclosure, of--
  (A) the temporary mortgage assistance payments program authorized under
  section 230 of the National Housing Act;
  (B) the authority of the Secretary to modify interest rates and other
  terms of mortgages transferred to the Secretary under section 7(i) of the
  Department of Housing and Urban Development Act; and
  (C) any authority pursuant to Debt Collection Act of 1982 to reduce interest
  rates on outstanding debt to the borrowing rate for the Treasury of the
  United States.
The Secretary shall evaluate alternatives to foreclosure based on fairness of
the procedures to the homeowner and reducing adverse effects on the mortgage
lending system.
  (b) REPORT- Not later than March 1, 1993, the Secretary shall submit
  a report to the Congress regarding the results of the study conducted
  under subsection (a). The report shall contain a detailed description and
  assessment of each alternative to foreclosure analyzed under the study
  and a statement by the Secretary regarding the intent of the Secretary to
  use any authority available under the provisions referred to in subsection
  (a)(2) to avoid foreclosure under mortgages (and any reasons for not using
  such authority). The report may also contain any recommendations of the
  Secretary for administrative or legislative action to assist homeowners
  to avoid foreclosure and any loss of equity in their mortgaged homes that
  may result from foreclosure.
SEC. 919. REGULATIONS CLARIFYING THE TERM `HOUSING FOR OLDER PERSONS'.
  The Secretary of Housing and Urban Development shall, not later than 180
  days after the date of the enactment of this Act, make rules defining what
  are `significant facilities and services especially designed to meet the
  physical or social needs of older persons' required under section 807(b)(2)
  of the Fair Housing Act to meet the definition of the term `housing for
  older persons' in such section.
SEC. 920. USE OF DOMESTIC PRODUCTS.
  (a) PROHIBITION AGAINST FRAUDULENT USE OF `MADE IN AMERICA' LABELS- A person
  shall not intentionally affix a label bearing the inscription of `Made in
  America', or any inscription with that meaning, to any product sold in or
  shipped to the United States, if that product is not a domestic product.
  (b) REPORT- The Secretary of Housing and Urban Development and the Secretary
  of Agriculture shall each submit, before January 1, 1994, a report to the
  Congress on procurements of products that are not domestic products.
  (c) DEFINITIONS- For the purposes of this section, the term `domestic
  product' means a product--
  (1) that is manufactured or produced in the United States; and
  (2) at least 50 percent of the cost of the articles, materials, or supplies
  of which are mined, produced, or manufactured in the United States.
SEC. 921. IMPROVED COORDINATION OF URBAN POLICY.
  Title VII of the Housing and Urban Development Act of 1970 (42 U.S.C. 4501
  et seq.) is amended--
  (1) in section 702(d), by striking paragraph (8) and inserting the following:
  `(8) increase coordination among Federal programs that seek to promote job
  opportunities and skills, decent and affordable housing, public safety,
  access to health care, educational opportunities, and fiscal soundness
  for urban communities and their residents.';
  (2) in section 703(a)--
  (A) by striking `during February 1978, and during February of every
  even-numbered year thereafter,' and inserting `, not later than June 1,
  1993, and not later than the first day of June of every odd-numbered year
  thereafter,'; and
  (B) in paragraph (8), by striking `such' and all that follows through the
  end of the sentence and inserting `legislative or administrative proposals--
  `(A) to promote coordination among Federal programs to assist urban areas;
  `(B) to enhance the fiscal capacity of fiscally distressed urban areas;
  `(C) to promote job opportunities in economically distressed urban areas
  and to enhance the job skills of residents of such areas;
  `(D) to generate decent and affordable housing;
  `(E) to reduce racial tensions and to combat racial and ethnic violence
  in urban areas;
  `(F) to combat urban drug abuse and drug-related crime and violence;
  `(G) to promote the delivery of health care to low-income communities in
  urban areas;
  `(H) to expand educational opportunities in urban areas; and
  `(I) to achieve the goals of the national urban policy.'; and
  (3) by adding at the end of section 703 the following new subsection:
  `(d) REFERRAL- The National Urban Policy Report shall, when transmitted to
  Congress, be referred in the Senate to the Committee on Banking, Housing,
  and Urban Affairs, and in the House of Representatives to the Committee
  on Banking, Finance and Urban Affairs.'.
SEC. 922. PROHIBITION OF LUMP-SUM PAYMENTS.
  The Department of Housing and Urban Development Act (42 U.S.C. 3531 et
  seq.) is amended by adding at the end the following new section:
`PROHIBITION OF LUMP-SUM PAYMENTS
  `SEC. 14. In providing relocation assistance in connection with any
  program administered by the Department of Housing and Urban Development,
  the Secretary may not make lump-sum payments to any displaced residential
  tenant, except where necessary to cover--
  `(1) moving expenses;
  `(2) a downpayment on the purchase of a replacement residence, including
  a condominium unit or membership in a cooperative housing association; or
  `(3) any incidental expenses related to paragraph (1) or (2).'.
SEC. 923. ECONOMIC INDEPENDENCE.
  The Secretary of Housing and Urban Development should immediately implement
  section 957 of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12714). Other Federal agencies authorized to assist low-income
  families should take similar steps to encourage economic independence and
  the accumulation of assets.
SEC. 924. ADMINISTRATIVE PROVISION.
  Subject to the availability of appropriations for this purpose, the
  Secretary of Housing and Urban Development shall cancel the indebtedness
  of the town of McLain, Mississippi, relating to the public facilities loan
  (Project No. MS 94-PFL39456). The town of McLain, Mississippi, is relieved
  of all liability to the Government for the outstanding principal balance
  on such loan, for the amount of accrued interest on such loan, and for
  any other fees and charges payable in connection with such loan.
SEC. 925. PERFORMANCE GOALS.
  (a) PERFORMANCE GOALS FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT-
  (1) IN GENERAL- The Secretary of the Department of Housing and Urban
  Development (hereafter in this Act referred to as the `Secretary')  may
  establish performance goals for the major programs of the Department of
  Housing and Urban Development in order to measure progress towards meeting
  the objectives of national housing policy.
  (2) FORM OF GOALS- The performance goals referred to in paragraph (1)
  shall be expressed in terms sufficient to measure progress.
  (3) REPORT- The Secretary shall include in the Secretary's annual report to
  the Congress a description of the progress made in attaining the performance
  goals for each program, citing the results achieved in each program for
  the previous year.
  (4) FAILURE TO MEET GOALS- If a performance standard or goal has not been
  met, the description under paragraph (3) shall include an explanation
  of why the goal was not met, propose plans for achieving the performance
  goal, and recommend any legislative or regulatory changes necessary for
  achievement of the goal.
  (b) PERFORMANCE GOALS FOR THE FARMERS HOME ADMINISTRATION-
  (1) IN GENERAL- The Secretary of Agriculture may establish performance goals
  for the major housing programs of the Farmers Home Administration in order to
  measure progress towards meeting the objectives of national housing policy.
  (2) FORM OF GOALS- The performance goals referred to in paragraph (1)
  shall be expressed in terms sufficient to measure progress.
  (3) REPORT- The Secretary of Agriculture shall prepare a report to the
  Congress on the progress made in attaining the performance goals for
  each program, citing the actual results achieved in such program for the
  previous year.
  (4) FAILURE TO MEET GOALS- If a performance standard or goal has not been
  met, the report under paragraph (3) shall include an explanation of why
  the goal was not met, propose plans for achieving the performance goal, and
  recommend any legislative or regulatory changes necessary for achievement
  of the goal.
SEC. 926. REGULATION OF CONSULTANTS.
  Section 13(f)(1) of the Department of Housing and Urban Development Act
  (42 U.S.C. 3537b(f)(1)) is amended by striking `authority', `State', and
  `local government', and by adding immediately before the period at the
  end the following: `, but does not include a State or local government, or
  the officer or employee of a State or local government or housing finance
  agency thereof who is engaged in the official business of the State or
  local government'.
SEC. 927. CLARIFICATION ON UTILITY ALLOWANCES.
  (a) ELIGIBILITY- Tenants who--
  (1) are responsible for making out-of-pocket payments for utility bills; and
  (2) receive energy assistance through utility allowances that include
  energy costs under programs identified in subsection (c);
shall not have their eligibility or benefits under other programs designed to
assist low-income people with increases in energy costs since 1978 (including
but not limited to the Low-Income Home Energy Assistance Program) reduced
or eliminated.
  (b) EQUAL TREATMENT IN BENEFIT PROGRAMS- Tenants described in subsection
  (a) shall be treated identically with other households eligible for such
  assistance, including in the determination of the home energy costs for which
  they are individually responsible and in the determination of their incomes.
  (c) APPLICABILITY- This section applies to programs under the United States
  Housing Act of 1937, the National Housing Act, section 101 of the Housing
  and Urban Development Act of 1965, section 202 of the Housing Act of 1959,
  and title V of the Housing Act of 1949.
SEC. 928. FLOOD CONTROL RESTORATION ZONE.
  Section 1307 of the National Flood Insurance Act of 1968 is amended by
  adding at the end the following new subsection:
  `(f) Notwithstanding any other provision of law, this subsection shall
  only apply in a community which has been determined by the Director of
  the Federal Emergency Management Agency to be in the process of restoring
  flood protection afforded by a flood protection system that had been
  previously accredited on a Flood Insurance Rate Map as providing 100-year
  frequency flood protection but no longer does so. Except as provided
  in this subsection, in such a community, flood insurance shall be made
  available to those properties impacted by the disaccreditation of the
  flood protection system at premium rates that do not exceed those which
  would be applicable to any property located in an area of special flood
  hazard, the construction of which was started prior to the effective date
  of the initial Flood Insurance Rate Map published by the Director for the
  community in which such property is located. A revised Flood Insurance
  Rate Map shall be prepared for the community to delineate as Zone AR the
  areas of special flood hazard that result from the disaccreditation of
  the flood protection system. A community will be considered to be in the
  process of restoration if--
  `(1) the flood protection system has been deemed restorable by a Federal
  agency in consultation with the local project sponsor;
  `(2) a minimum level of flood protection is still provided to the community
  by the disaccredited system; and
  `(3) restoration of the flood protection system is scheduled to occur
  within a designated time period and in accordance with a progress plan
  negotiated between the community and the Federal Emergency Management Agency.
Communities that the Director of the Federal Emergency Management Agency
determines to meet the criteria set forth in paragraphs (1) and (2) as of
January 1, 1992, shall not be subject to revised Flood Insurance Rate Maps
that contravene the intent of this subsection. Such communities shall remain
eligible for C zone rates for properties located in zone AR for any policy
written prior to promulgation of final regulations for this section. Floodplain
management criteria for such communities shall not require the elevation of
improvements to existing structures and shall not exceed 3 feet above existing
grade for new construction, provided the base flood elevation based on the
disaccredited flood control system does not exceed five feet above existing
grade, or the remaining new construction in such communities is limited to
infill sites, rehabilitation of existing structures, or redevelopment of
previously developed areas.
The Director of the Federal Emergency Management Agency shall develop
and promulgate regulations to implement this subsection, including minimum
floodplain management criteria, within 24 months after the date of enactment
of this subsection.'.
SEC. 929. SALARIES AND EXPENSES.
  Section 7 of the Department of Housing and Urban Development Act (42
  U.S.C. 3535) is amended by inserting at the end the following new subsection:
  `(s)(1) Notwithstanding any other provision of law, there is authorized
  to be appropriated for salaries and expenses to carry out the purposes
  of this section $988,000,000 for fiscal year 1993 and $1,029,496,000 for
  fiscal year 1994.
  `(2) Of the amounts authorized to be appropriated by this section,
  $96,000,000 shall be available for each of the fiscal years 1993 and 1994,
  which amounts shall be used to provide staff in regional, field, or zone
  offices of the Department of Housing and Urban Development to review,
  process, approve, and service applications for mortgage insurance under
  title II of the National Housing Act for housing consisting of 5 or more
  dwelling units.
  `(3) Of the amounts authorized to be appropriated to carry out this
  section, not less than $5,000,000 of such amount shall be  available for
  each fiscal year exclusively for the purposes of providing ongoing training
  and capacity building for Department personnel.'.
SEC. 930. THE NATIONAL CITIES IN SCHOOLS COMMUNITY DEVELOPMENT PROGRAM.
  (a) PURPOSE- The purposes of this section are--
  (1) to empower the local community by investing in its human capital
  through a private-public partnership to rebuild urban and rural communities
  through schools and other community organizations, including public housing
  communities; and
  (2) to ensure that by December 1997, the Cities in Schools Program,
  through the National Center for Partnership Development, will have
  developed the capacity to reach 500,000 at-risk youth and their families
  through community-wide programs that channel existing community resources
  to provide personal, coordinated and accountable support.
  (b) GRANTS TO STRENGTHEN THE NATIONAL CITIES IN SCHOOLS PROGRAM- The
  Secretary  of Housing and Urban Development shall make grants to expand
  the National Cities in Schools Program and operations of the National
  Center for Partnership Development to--
  (1) develop, establish, and support projects to strengthen local community
  dropout prevention programs in elementary and secondary schools;
  (2) train community leaders responsible for the implementation of local
  community Cities in Schools dropout prevention programs; and
  (3) disseminate to, and support replication by, States and communities of
  effective dropout prevention strategies.
  (c) AUTHORIZATION- There are authorized to be appropriated to carry out
  this section $10,000,000 for fiscal year 1993 and $10,420,000 for fiscal
  year 1994.
SEC. 931. BANK ENTERPRISE ACT OF 1991 AND RELATED PROVISIONS.
  (a) ASSESSMENT RATE FOR LIFELINE ACCOUNT DEPOSITS- Section 7(b)(10) of
  the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(10)) (as added by
  section 232(b)(2) of the Bank Enterprise Act of 1991) is amended by striking
  `at the assessment rate of  1/2  the maximum rate.' and inserting `at an
  assessment rate to be determined by the Corporation by regulation. Such
  assessment rate may not be less than  1/2  the maximum assessment rate.'.
  (b) ASSESSMENT PROCEDURE- Section 7(b)(2)(A)(iii)(I) of the Federal
  Deposit Insurance Act (12 U.S.C. 1917(b)(2)(A)(iii)(I)) (as added by
  section 232(b)(3)(C) of the Bank Enterprise Act of 1991) is amended to
  read as follows:
  `(I) the assessment rate determined by the Corporation pursuant to paragraph
  (10) with respect to such semiannual period; and'.
  (c) QUALIFYING ACTIVITIES FOR ASSESSMENT CREDITS- Section 233(a)(2) of
  the Bank Enterprise Act of 1991 (12 U.S.C. 1934a(a)(2)) is amended to read
  as follows:
  `(2) QUALIFYING ACTIVITIES- An insured depository institution shall be
  eligible for any community enterprise assessment credit for any semiannual
  period for--
  `(A) the amount, during such period, of new originations of qualified
  loans and other financial assistance provided for low- and moderate-income
  persons in distressed communities, or enterprises integrally involved with
  such neighborhoods, which the Board determines are qualified to be taken
  into account for purposes of this subsection; and
  `(B) the amount, during such period, of deposits accepted from persons
  domiciled in the distressed community, at any office of the institution
  (including any branch) located in any qualified distressed community, and
  new originations of any loans and other financial assistance made within
  that community, except that in no case shall the credit for deposits at
  any institution or branch exceed the credit for loans and other financial
  assistance by the bank or branch in the distressed community.'.
  (d) AMOUNT OF ASSESSMENT CREDIT- Section 233(a)(3) of the Bank Enterprise
  Act of 1991 (12 U.S.C. 1934a(a)(3)) is amended to read as follows:
  `(3) AMOUNT OF ASSESSMENT CREDIT- The amount of any community enterprise
  assessment credit available under section 7(d)(4) of the Federal Deposit
  Insurance Act for any insured depository institution, or a qualified
  portion thereof, shall be the amount which is equal to 5 percent, in
  the case of an institution which does not meet the community development
  organization requirements under section 234, and 15 percent, in the case of
  an institution, or a qualified portion thereof, which meets such requirements
  (or any percentage designated under paragraph (5)) of--
  `(A) for the first full semiannual period in which community enterprise
  assessment credits are available, the sum of--
  `(i) the amounts of assets described in paragraph (2)(A); and
  `(ii) the amounts of deposits, loans, and other financial assistance
  described in paragraph (2)(B); and
  `(B) for any subsequent semiannual period, the sum of--
  `(i) any increase during such period in the amount of assets described in
  paragraph (2)(A) that has been deemed eligible for credit by the Board; and
  `(ii) any increase during such period in the amounts of deposits, loans,
  and other financial assistance described in paragraph (2)(B) that has been
  deemed eligible for credit by the Board.'.
  (e) ELIGIBILITY REQUIREMENTS FOR QUALIFIED DISTRESSED COMMUNITIES- Section
  233(b)(4) of the Bank Enterprise Act of 1991 (12 U.S.C. 1934a(b)(4))
  is amended to read as follows:
  `(4) ELIGIBILITY REQUIREMENTS- For purposes of this subsection, an area
  meets the requirements of this paragraph if the following criteria are met:
  `(A) At least 30 percent of the residents residing in the area have incomes
  which are less than the national poverty level.
  `(B) The unemployment rate for the area is 1 1/2  times greater than the
  national average (as determined by the Bureau of Labor Statistics' most
  recent figures).
  `(C) Such additional eligibility requirements as the Board may, in its
  discretion, deem necessary to carry out the provisions of this subtitle.'.
SEC. 932. DISCLOSURES UNDER THE HOME MORTGAGE DISCLOSURE ACT OF 1975.
  (a) IN GENERAL- Section 304 of the Home Mortgage Disclosure Act of 1975 (12
  U.S.C. 2803) is amended by adding at the end the following new subsections:
  `(j) LOAN APPLICATION REGISTER INFORMATION-
  `(1) IN GENERAL- In addition to the information required to be disclosed
  under subsections (a) and (b), any depository institution which is required
  to make disclosures under this section shall make available to the public,
  upon request, loan application register information (as defined by the
  Board by regulation) in the form required under regulations prescribed by
  the Board.
  `(2) FORMAT OF DISCLOSURE-
  `(A) UNEDITED FORMAT- Subject to subparagraph (B), the loan application
  register information described in paragraph (1) may be disclosed by a
  depository institution without editing or compilation and in the format
  in which such information is maintained by the institution.
  `(B) PROTECTION OF APPLICANT'S PRIVACY INTEREST- The Board shall require,
  by regulation, such deletions as the Board may determine to be appropriate
  to protect--
  `(i) any privacy interest of any applicant, including the deletion of the
  applicant's name and identification number, the date of the application,
  and the date of any determination by the institution with respect to such
  application; and
  `(ii) a depository institution from liability under any Federal or State
  privacy law.
  `(C) CENSUS TRACT FORMAT ENCOURAGED- It is the sense of the Congress that
  a depository institution should provide loan register information under
  this section in a format based on the census tract in which the property
  is located.
  `(3) CHANGE OF FORM NOT REQUIRED- A depository institution meets the
  disclosure requirement of paragraph (1) if the institution provides
  the information required under such paragraph in the form in which the
  institution maintains such information.
  `(4) REASONABLE CHARGE FOR INFORMATION- Any depository institution which
  provides information under this subsection may impose a reasonable fee
  for any cost incurred in reproducing such information.
  `(5) TIME OF DISCLOSURE- The disclosure of the loan application register
  information described in paragraph (1) for any year pursuant to a request
  under paragraph (1) shall be made--
  `(A) in the case of a request made on or before March 1 of the succeeding
  year, before April 1 of the succeeding year; and
  `(B) in the case of a request made after March 1 of the succeeding year,
  before the end of the 30-day period beginning on the date the request
  is made.
  `(6) RETENTION OF INFORMATION- Notwithstanding subsection (c), the loan
  application register information described in paragraph (1) for any year
  shall be maintained and made available, upon request, for 3 years after
  the close of the 1st year during which such information is required to be
  maintained and made available.
  `(7) MINIMIZING COMPLIANCE COSTS- In prescribing regulations under this
  subsection, the Board shall make every effort to minimize the costs
  incurred by a depository institution in complying with this subsection
  and such regulations.
  `(k) DISCLOSURE OF STATEMENTS BY DEPOSITORY INSTITUTIONS-
  `(1) IN GENERAL- In accordance with procedures established by the Board
  pursuant to this section, any depository institution required to make
  disclosures under this section--
  `(A) shall make a disclosure statement available, upon request, to the
  public no later than 3 business days after the institution receives the
  statement from the Federal Financial Institutions Examination Council; and
  `(B) may make such statement available on a floppy disc which may be used
  with a personal computer or in any other media which is not prohibited
  under regulations prescribed by the Board.
  `(2) NOTICE THAT DATA IS SUBJECT TO CORRECTION AFTER FINAL REVIEW- Any
  disclosure statement provided pursuant to paragraph (1) shall be accompanied
  by a clear and conspicuous notice that the statement is subject to final
  review and revision, if necessary.
  `(3) REASONABLE CHARGE FOR INFORMATION- Any depository institution which
  provides a disclosure statement pursuant to paragraph (1) may impose a
  reasonable fee for any cost incurred in providing or reproducing such
  statement.
  `(l) PROMPT DISCLOSURES-
  `(1) IN GENERAL- Any disclosure of information pursuant to this section
  or section 310 shall be made as promptly as possible.
  `(2) MAXIMUM DISCLOSURE PERIOD-
  `(A) 6- AND 9-MONTH MAXIMUM PERIODS- Except as provided in subsections
  (j)(5) and (k)(1) and regulations prescribed by the Board and subject to
  subparagraph (B), any information required to be disclosed for any year
  beginning after December 31, 1992, under--
  `(i) this section shall be made available to the public before September
  1 of the succeeding year; and
  `(ii) section 310 shall be made available to the public before December
  1 of the succeeding year.
  `(B) SHORTER PERIODS ENCOURAGED AFTER 1994- With respect to disclosures
  of information under this section or section 310 for any year beginning
  after December 31, 1993, every effort shall be made--
  `(i) to make information disclosed under this section available to the
  public before July 1 of the succeeding year; and
  `(ii) to make information required to be disclosed under section 310
  available to the public before September 1 of the succeeding year.
  `(3) IMPROVED PROCEDURE- The Federal Financial Institutions Examination
  Council shall make such changes in the system established pursuant to
  subsection (f) as may be necessary to carry out the requirements of this
  subsection.'.
  (b) TECHNICAL AND CONFORMING AMENDMENT- Section 304(c) of the Home Mortgage
  Disclosure Act of 1975 (12 U.S.C. 2803(c)) is amended by inserting `,
  other than loan application register information under subsection (j),'
  after `under this section'.
  (c) EFFECTIVE DATE- The amendments made by subsections (a) and (b) shall
  apply with respect to information disclosed under section 304 of the Home
  Mortgage Disclosure Act of 1975 for any year which ends after the date of
  the enactment of this Act.
SEC. 933. PROHIBITION ON USE OF `RULE OF 78's' IN CONNECTION WITH MORTGAGE
REFINANCINGS AND OTHER CONSUMER LOANS.
  (a) PROMPT REFUND OF UNEARNED INTEREST REQUIRED-
  (1) IN GENERAL- If a consumer prepays in full the financed amount under
  any consumer credit transaction, the creditor shall promptly refund any
  unearned portion of the interest charge to the consumer.
  (2) EXCEPTION FOR REFUND OF DE MINIMUS AMOUNT- No refund shall be required
  under paragraph (1) with respect to the prepayment of any consumer credit
  transaction if the total amount of the refund would be less than $1.
  (3) APPLICABILITY TO REFINANCED TRANSACTIONS AND ACCELERATION BY THE
  CREDITOR- This subsection shall apply with respect to any prepayment of a
  consumer credit transaction described in paragraph (1) without regard to
  the manner or the reason for the prepayment, including--
  (A) any prepayment made in connection with the refinancing, consolidation,
  or restructuring of the transaction; and
  (B) any prepayment made as a result of the acceleration of the obligation
  to repay the amount due with respect to the transaction.
  (b) USE OF `RULE OF 78'S' PROHIBITED- For the purpose of calculating any
  refund of interest required under subsection (a) for any precomputed consumer
  credit transaction of a term exceeding 61 months which is consummated after
  September 30, 1993, the creditor shall compute the refund based on a method
  which is at least as favorable to the consumer as the actuarial method.
  (c) STATEMENT OF PREPAYMENT AMOUNT-
  (1) IN GENERAL- Before the end of the 5-day period beginning on the date an
  oral or written request is received by a creditor from a consumer for the
  disclosure of the amount due on any precomputed consumer credit account,
  the creditor or assignee shall provide the consumer with a statement of--
  (A) the amount necessary to prepay the account in full; and
  (B) if the amount disclosed pursuant to subparagraph (A) includes an amount
  which is required to be refunded under this section with respect to such
  prepayment, the amount of such refund.
  (2) WRITTEN STATEMENT REQUIRED IF REQUEST IS IN WRITING- If the customer's
  request is in writing, the statement under paragraph (1) shall be in writing.
  (3) 1 FREE ANNUAL STATEMENT- A consumer shall be entitled to obtain 1
  statement under paragraph (1) each year without charge.
  (4) ADDITIONAL STATEMENTS SUBJECT TO REASONABLE FEES- Any creditor may
  impose a reasonable fee to cover the cost of providing any statement under
  paragraph (1) to any consumer in addition to the 1 free annual statement
  required under paragraph (3) if the amount of the charge for such additional
  statement is disclosed to the consumer before furnishing such statement.
  (d) DEFINITIONS- For the purpose of this section--
  (1) ACTUARIAL METHOD- The term `actuarial method' means the method
  of allocating payments made on a debt between the amount financed and
  the finance charge pursuant to which a payment is applied first to the
  accumulated finance charge and any remainder is subtracted from, or any
  deficiency is added to, the unpaid balance of the amount financed.
  (2) CONSUMER, CREDIT- The terms `consumer' and `creditor' have the meanings
  given to such terms in section 103 of the Consumer Credit Protection Act.
  (3) CREDITOR- The term `creditor'--
  (A) has the meaning given to such term in section 103 of the Consumer
  Credit Protection Act; and
  (B) includes any assignee of any creditor with respect to credit extended
  in connection with any consumer credit transaction and any subsequent
  assignee with respect to such credit.
Subtitle B--Bank Regulatory Clarification Provisions
SEC. 951. AMENDMENT RELATING TO ESTIMATES OF REAL ESTATE SETTLEMENT COSTS.
  Section 5(d) of the Real Estate Settlement Procedures Act of 1974 (12
  U.S.C. 2604(d)) is amended by striking the last sentence and inserting
  `Such booklet shall be provided by delivering it or placing it in the mail
  not later than 3 business days after the lender receives the application,
  but no booklet need be provided if the lender denies the application for
  credit before the end of the 3-day period.'.
SEC. 952. ADJUSTABLE RATE MORTGAGE CAPS.
  Section 1204(d)(2) of the Competitive Equality Banking Act of 1987 (12
  U.S.C. 3806(d)(2)) is amended by striking `any loan' and inserting `any
  consumer loan'.
SEC. 953.  MODIFYING SEPARATE CAPITALIZATION RULE FOR SAVINGS ASSOCIATIONS'
SUBSIDIARIES ENGAGED IN ACTIVITIES NOT PERMISSIBLE FOR NATIONAL BANKS.
  (a) IN GENERAL- Section 5(t)(5)(D) of the Home Owners' Loan Act (12
  U.S.C. 1464(t)(5)(D)) is amended by redesignating clause (iii) as clause
  (ix) and by inserting after clause (ii) the following new clauses:
  `(iii) AGENCY DISCRETION TO PRESCRIBE GREATER PERCENTAGE- Subject to clauses
  (iv), (v), and (vi), the Director may prescribe by order, with respect
  to a particular qualified savings association, an applicable percentage
  greater than that provided in clause (ii) if the Director determines, in
  the Director's sole discretion, that the use of the greater percentage,
  under the circumstances--
  `(I) would not constitute an unsafe or unsound practice;
  `(II) would not increase the risk to the affected deposit insurance fund; and
  `(III) would not be likely to result in the association's being in an
  unsafe or unsound condition.
  `(iv) SUBSTANTIAL COMPLIANCE WITH APPROVED CAPITAL PLAN- In the case of a
  savings association which is subject to a plan submitted under paragraph
  (7)(D) of this subsection or an order issued under this subsection,
  a directive issued or plan approved under subsection (s), or a capital
  restoration plan approved or order issued under section 38 or 39 of
  the Federal Deposit Insurance Act, an order issued under clause (iii)
  with respect to the association shall be effective only so long as the
  association is in substantial compliance with such plan, directive, or order.
  `(v) LIMITATION ON INVESTMENTS TAKEN INTO ACCOUNT- In prescribing the
  amount by which an applicable percentage under clause (iii) may exceed
  the applicable percentage under clause (ii) with respect to a particular
  qualified savings association, the Director may take into account only
  the sum of--
  `(I) the association's investments in, and extensions of credit to, the
  subsidiary that were made on or before April 12, 1989; and
  `(II) the association's investments in, and extensions of credit to,
  the subsidiary that were made after April 12, 1989, and were necessary to
  complete projects initiated before April 12, 1989.
  `(vi) LIMIT- The applicable percentage limit allowed by the Director in
  an order under clause (iii) shall not exceed the following limits:
`For the following period:
--The limit is:
Prior to July 1, 1994
--75 percent
July 1, 1994 through June 30, 1995
--60 percent
July 1, 1995 through June 30, 1996
--40 percent
After June 30, 1996
--0 percent
  `(vii) CRITICALLY UNDERCAPITALIZED INSTITUTION- In the case of a savings
  association that becomes critically undercapitalized (as defined in
  section 38 of the Federal Deposit Insurance Act) as determined under this
  subparagraph without applying clause (iii), clauses (iii) through (v)
  shall be applied by substituting `Corporation' for `Director' each place
  such term appears.
  `(viii) QUALIFIED SAVINGS ASSOCIATION DEFINED- For purposes of clause
  (iii), the term `qualified savings association' means an eligible savings
  association (as defined in paragraph (3)(B)) which is subject to this
  paragraph solely because of the real estate investments or other real
  estate activities of the association's subsidiary, and--
  `(I) is adequately capitalized (as defined in section 38 of the Federal
  Deposit Insurance Act); or
  `(II) is in compliance with an approved capital restoration plan meeting
  the requirements of section 38 of the Federal Deposit Insurance Act,
  and is not critically undercapitalized (as defined in such section).'.
  (b) TECHNICAL AND CONFORMING AMENDMENT- Clause (ix) of section 5(t)(5)(D)
  of the Home Owners' Loan Act (12 U.S.C. 1464(t)(5)(D)) (as so redesignated
  by subsection (a) of this section) is amended by inserting `or prescribed
  under clause (iii)' after `clause (ii)'.
SEC. 954. REAL ESTATE APPRAISAL AMENDMENT.
  Section 1112 of the Financial Institution Reform, Recovery, and Enforcement
  Act of 1989 (12 U.S.C. 3341) is amended--
  (1) by striking `Each Federal financial institutions' and inserting `(a)
  IN GENERAL- Each Federal financial institutions'; and
  (2) by adding at the end the following new subsections:
  `(b) THRESHOLD LEVEL- Each Federal financial institutions regulatory
  agency and the Resolution Trust Corporation may establish a threshold
  level at or below which a certified or licensed appraiser is not required
  to perform appraisals in connection with federally related transactions,
  if such agency determines in writing that such threshold level does not
  represent a threat to the safety and soundness of financial institutions.
  `(c) GAO STUDY OF APPRAISALS IN CONNECTION WITH REAL ESTATE RELATED
  FINANCIAL TRANSACTIONS BELOW THE THRESHOLD LEVEL-
  `(1) STUDY REQUIRED- At the end of the 18-month period, and the end of the
  36-month period, beginning on the date of the enactment of this subsection,
  the Comptroller General of the United States shall conduct a study on the
  adequacy and quality of appraisals or evaluations conducted in connection
  with real estate related financial transactions below the threshold level
  established under subsection (b), taking into account--
  `(A) the cost to any financial institution involved in any such transaction;
  `(B) the possibility of losses to the Bank Insurance Fund, the Savings
  Association Insurance Fund, or the National Credit Union Share Insurance
  Fund;
  `(C) the cost to any customer involved in any such transaction; and
  `(D) the effect on low-income housing.
  `(2) REPORTS TO CONGRESS AND THE APPROPRIATE FEDERAL FINANCIAL INSTITUTIONS
  REGULATORY AGENCIES- Upon completing each of the studies required under
  paragraph (1), the Comptroller General shall submit a report on the
  Comptroller General's findings and conclusions with respect to such study
  to the Federal financial institutions regulatory agencies, the Committee
  on Banking, Finance and Urban Affairs of the House of Representatives,
  and the Committee on Banking, Housing, and Urban Affairs of the Senate,
  together with such recommendations for legislative or administrative action
  as the Comptroller General determines to be appropriate.'.
SEC. 955. INSIDER LENDING.
  (a) AUTHORITY TO MAKE EXCEPTIONS TO DEFINITION OF EXTENSION OF CREDIT-
  Section 22(h)(9)(D) of the Federal Reserve Act (12 U.S.C. 375b(h)(9)(D))
  is amended--
  (1) by striking `(D) EXTENSION OF CREDIT- A member bank' and inserting
  the following:
  `(D) EXTENSION OF CREDIT-
  `(i) IN GENERAL- A member bank'; and
  (2) by adding at the end the following new clause:
  `(ii) EXCEPTIONS- The Board may, by regulation, make exceptions to clause
  (i) for transactions that the Board determines pose minimal risk.'.
  (b) PRINCIPAL SHAREHOLDER DEFINED- Section 22(h)(9)(F) of the Federal
  Reserve Act (12 U.S.C. 375b(h)(9)(F)) is amended--
  (1) by striking `shareholder' means any person' and inserting `shareholder'--
  `(i) means any person';
  (2) by striking the period at the end of clause (i) (as so redesignated
  by paragraph (1) of this subsection) and inserting `; and'; and
  (3) by adding at the end the following new clause:
  `(ii) does not include a company of which a member bank is a subsidiary.'.
SEC. 956. CLARIFICATION OF COMPENSATION STANDARDS.
  Section 39 of the Federal Deposit Insurance Act (as added by section
  132(a) of Federal Deposit Insurance Corporation Improvement Act of 1991)
  (12 U.S.C. 1831s) is amended--
  (1) by striking subsection (d) and inserting the following new subsection:
  `(d) STANDARDS TO BE PRESCRIBED BY REGULATION-
  `(1) IN GENERAL- Standards under subsections (a), (b), and (c) shall be
  prescribed by regulation. Such regulations may not prescribe standards
  that set a specific level or range of compensation for directors, officers,
  or employees of insured depository institutions.
  `(2) APPLICABILITY OF OTHER LAWS- Paragraph (1) shall not affect the
  authority of any appropriate Federal banking agency to restrict the
  level of compensation, including golden parachute payments (as defined
  in section 18(k)(4)), paid to any director, officer, or employee of an
  insured depository institution under any other provision of law.
  `(3) SENIOR EXECUTIVE OFFICERS AT UNDERCAPITALIZED INSTITUTIONS- Paragraph
  (1) shall not affect the authority of any appropriate Federal banking
  agency to restrict compensation paid to any senior executive officer of
  an undercapitalized insured depository institution pursuant to section 38.
  `(4) SAFETY AND SOUNDNESS OR ENFORCEMENT ACTIONS- Paragraph (1) shall
  not be construed as affecting the authority of any appropriate Federal
  banking agency under any provision of this Act other than this section,
  or under any other provision of law, to prescribe a specific level or
  range of compensation for any director, officer, or employee of an insured
  depository institution--
  `(A) to preserve the safety and soundness of the institution; or
  `(B) in connection with any action under section 8 or any order issued
  by the agency, any agreement between the agency and the institution,
  or any condition imposed by the agency in connection with the agency's
  approval of an application or other request by the institution, which is
  enforceable under section 8.'; and
  (2) in subsection (e)(1)(A), by striking `(a), (b), or (c)' and inserting
  `(a) or (b)'.
SEC. 957. TRUTH IN SAVINGS ACT AMENDMENTS.
  (a) ON-PREMISES DISPLAYS- Section 263 of the Truth in Savings Act (12
  U.S.C. 4302) is amended--
  (1) in subsection (a), by striking `subsection (b)' and inserting
  `subsections (b) and (c)';
  (2) by redesignating subsections (c) and (d) as subsections (d) and (e),
  respectively; and
  (3) by inserting after subsection (b) the following new subsection:
  `(c) DISCLOSURE REQUIRED FOR ON-PREMISES DISPLAYS-
  `(1) IN GENERAL- The disclosure requirements contained in this section
  shall not apply to any sign (including a rate board) disclosing a rate
  or rates of interest which is displayed on the premises of the depository
  institution if such sign contains--
  `(A) the accompanying annual percentage yield; and
  `(B) a statement that the consumer should request further information from
  an employee of the depository institution concerning the fees and terms
  applicable to the advertised account.
  `(2) DEFINITION- For purposes of paragraph (1), a sign shall only be
  considered to be displayed on the premises of a depository institution if
  the sign is designed to be viewed only from the interior of the premises
  of the depository institution.'.
  (b) EFFECTIVE DATE OF REGULATIONS- Section 269(a)(2) of the Truth in Savings
  Act (12 U.S.C. 4308(a)(2)) is amended by striking `6 months' and inserting
  `9 months'.
TITLE X--RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT OF 1992
SEC. 1001. SHORT TITLE.
  This title may be cited as the `Residential Lead-Based Paint Hazard
  Reduction Act of 1992'.
SEC. 1002. FINDINGS.
  The Congress finds that--
  (1) low-level lead poisoning is widespread among American children,
  afflicting as many as 3,000,000 children under age 6, with minority and
  low-income communities disproportionately affected;
  (2) at low levels, lead poisoning in children causes intelligence quotient
  deficiencies, reading and learning disabilities, impaired hearing, reduced
  attention span, hyperactivity, and behavior problems;
  (3)  pre-1980 American housing stock contains more than 3,000,000 tons
  of lead in the form of lead-based paint, with the vast majority of homes
  built before 1950 containing substantial amounts of lead-based paint;
  (4) the ingestion of household dust containing lead from deteriorating
  or abraded lead-based paint is the most common cause of lead poisoning
  in children;
  (5) the health and development of children living in as many as 3,800,000
  American homes is endangered by chipping or peeling lead paint, or excessive
  amounts of lead-contaminated dust in their homes;
  (6) the danger posed by lead-based paint hazards can be reduced by abating
  lead-based paint or by taking interim measures to prevent paint deterioration
  and limit children's exposure to lead dust and chips;
  (7) despite the enactment of laws in the early 1970's requiring the Federal
  Government to eliminate as far as practicable lead-based paint hazards in
  federally owned, assisted, and insured housing, the Federal response to
  this national crisis remains severely limited; and
  (8) the Federal Government must take a leadership role in building the
  infrastructure--including an informed public, State and local delivery
  systems, certified inspectors, contractors, and laboratories, trained
  workers, and available financing and insurance--necessary to ensure that
  the national goal of eliminating lead-based paint hazards in housing can
  be achieved as expeditiously as possible.
SEC. 1003.  PURPOSES.
  The purposes of this Act are--
  (1) to develop a national strategy to build the infrastructure necessary
  to eliminate lead-based paint hazards in all housing as expeditiously
  as possible;
  (2) to reorient the national approach to the presence of lead-based paint
  in housing to implement, on a priority basis, a broad program to evaluate
  and reduce lead-based paint hazards in the Nation's housing stock;
  (3) to encourage effective action to prevent childhood lead poisoning by
  establishing a workable framework for lead-based paint hazard evaluation
  and reduction and by ending the current confusion over reasonable standards
  of care;
  (4) to ensure that the existence of lead-based paint hazards is taken into
  account in the development of Government housing policies and in the sale,
  rental, and renovation of homes and apartments;
  (5) to mobilize national resources expeditiously, through a partnership
  among all levels of government and the private sector, to develop the most
  promising, cost-effective methods for evaluating and reducing lead-based
  paint hazards;
  (6) to reduce the threat of childhood lead poisoning in housing owned,
  assisted, or transferred by the Federal Government; and
  (7) to educate the public concerning the hazards and sources of lead-based
  paint poisoning and steps to reduce and eliminate such hazards.
SEC. 1004. DEFINITIONS.
  For the purposes of this Act, the following definitions shall apply:
  (1) ABATEMENT- The term `abatement' means any set of measures designed to
  permanently eliminate lead-based paint hazards in accordance with standards
  established by appropriate Federal agencies. Such term includes--
  (A) the removal of lead-based paint and lead-contaminated dust, the
  permanent containment or encapsulation of lead-based paint, the replacement
  of lead-painted surfaces or fixtures, and the removal or covering of lead
  contaminated soil; and
  (B) all preparation, cleanup, disposal, and postabatement clearance testing
  activities associated with such measures.
  (2) ACCESSIBLE SURFACE- The term `accessible surface' means an interior
  or exterior surface painted with lead-based paint that is accessible for
  a young child to mouth or chew.
  (3) CERTIFIED CONTRACTOR- The term `certified contractor' means--
  (A) a contractor, inspector, or supervisor who has completed a training
  program certified by the appropriate Federal agency and has met any other
  requirements for certification or licensure established by such agency
  or who has been certified by any State through a program which has been
  found by such Federal agency to be at least as rigorous as the Federal
  certification program; and
  (B) workers or designers who have fully met training requirements established
  by the appropriate Federal agency.
  (4) CONTRACT FOR THE PURCHASE AND SALE OF RESIDENTIAL REAL PROPERTY- The
  term `contract for the purchase and sale of residential real property'
  means any contract or agreement in which one party agrees to purchase an
  interest in real property on which there is situated 1 or more residential
  dwellings used or occupied, or intended to be used or occupied, in whole
  or in part, as the home or residence of 1 or more persons.
  (5) DETERIORATED PAINT- The term `deteriorated paint' means any interior
  or exterior paint that is peeling, chipping, chalking or cracking or any
  paint located on an interior or exterior surface or fixture that is damaged
  or deteriorated.
  (6) EVALUATION- The term `evaluation' means risk assessment, inspection,
  or risk assessment and inspection.
  (7) FEDERALLY ASSISTED HOUSING- The term `federally assisted housing'
  means residential dwellings receiving project-based assistance under
  programs including--
  (A) section 221(d)(3) or 236 of the National Housing Act;
  (B) section 1 of the Housing and Urban Development Act of 1965;
  (C) section 8 of the United States Housing Act of 1937; or
  (D) sections 502(a), 504, 514, 515, 516 and 533 of the Housing Act of 1949.
  (8) FEDERALLY OWNED HOUSING- The term `federally owned housing' means
  residential dwellings owned or managed by a Federal agency, or for which
  a Federal agency is a trustee or conservator.  For the purpose of this
  paragraph, the term `Federal agency' includes the Department of Housing
  and Urban Development, the Farmers Home Administration, the Resolution
  Trust Corporation, the Federal Deposit Insurance Corporation, the General
  Services Administration, the Department of Defense, the Department of
  Veterans Affairs, the Department of the Interior, the Department of
  Transportation, and any other Federal agency.
  (9) FEDERALLY SUPPORTED WORK- The term `federally supported work' means any
  lead hazard evaluation or reduction activities conducted in federally owned
  or assisted housing or funded in whole or in part through any financial
  assistance program of the Department of Housing and Urban Development,
  the Farmers Home Administration, or the Department of Veterans Affairs.
  (10) FRICTION SURFACE- The term `friction surface' means an interior or
  exterior surface that is subject to abrasion or friction, including certain
  window, floor, and stair surfaces.
  (11) IMPACT SURFACE- The term `impact surface' means an interior or
  exterior surface that is subject to damage by repeated impacts, for example,
  certain parts of door frames.
  (12) INSPECTION- The term `inspection' means a surface-by-surface
  investigation to determine the presence of lead-based paint as provided
  in section 302(c) of the Lead-Based Paint Poisoning Prevention Act and
  the provision of a report explaining the results of the investigation.
  (13) INTERIM CONTROLS- The term `interim controls' means a set of measures
  designed to reduce temporarily human exposure or likely exposure to
  lead-based paint hazards, including specialized cleaning, repairs,
  maintenance, painting, temporary containment, ongoing monitoring of
  lead-based paint hazards or potential hazards, and the establishment and
  operation of management and resident education programs.
  (14) LEAD-BASED PAINT- The term `lead-based paint' means paint or other
  surface coatings that contain lead in excess of limits established under
  section 302(c) of the Lead-Based Paint Poisoning Prevention Act.
  (15) LEAD-BASED PAINT HAZARD- The term `lead-based paint hazard' means
  any condition that causes exposure to lead from lead-contaminated dust,
  lead-contaminated soil, lead-contaminated paint that is deteriorated or
  present in accessible surfaces, friction surfaces, or impact surfaces
  that would result in adverse human health effects as established by the
  appropriate Federal agency.
  (16) LEAD-CONTAMINATED DUST- The term `lead-contaminated dust' means surface
  dust in residential dwellings that contains an area or mass concentration
  of lead in excess of levels determined by the appropriate Federal agency to
  pose a threat of adverse health effects in pregnant women or young children.
  (17) LEAD-CONTAMINATED SOIL- The term `lead-contaminated soil' means bare
  soil on residential real property that contains lead at or in excess of
  the levels determined to be hazardous to human health by the appropriate
  Federal agency.
  (18) MORTGAGE LOAN- The term `mortgage loan' includes any loan (other than
  temporary financing such as a construction loan) that--
  (A) is secured by a first lien on any interest in residential real
  property; and
  (B) either--
  (i) is insured, guaranteed, made, or assisted by the Department of Housing
  and Urban Development, the Department of Veterans Affairs, or the Farmers
  Home Administration, or by any other agency of the Federal Government; or
  (ii) is intended to be sold by each originating mortgage institution to
  any federally chartered secondary mortgage market institution.
  (19) ORIGINATING MORTGAGE INSTITUTION- The term `originating mortgage
  institution' means a lender that provides mortgage loans.
  (20) PRIORITY HOUSING- The term `priority housing' means target housing that
  qualifies as affordable housing under section 215 of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12745), including housing that
  receives assistance under subsection (b) or (o) of section 8 of the United
  States Housing Act of 1937 (42 U.S.C. 1437f(b) or (o)).
  (21) PUBLIC HOUSING- The term `public housing' has the same meaning
  given the term in section 3(b) of the United States Housing Act of 1937
  (42 U.S.C. 1437a(b)(1)).
  (22) REDUCTION- The term `reduction' means measures designed to reduce
  or eliminate human exposure to lead-based paint hazards through methods
  including interim controls and abatement.
  (23) RESIDENTIAL DWELLING- The term `residential dwelling' means--
  (A) a single-family dwelling, including attached structures such as porches
  and stoops; or
  (B) a single-family dwelling unit in a structure that contains more than
  1 separate residential dwelling unit, and in which each such unit is used
  or occupied, or intended to be used or occupied, in whole or in part,
  as the home or residence of 1 or more persons.
  (24) RESIDENTIAL REAL PROPERTY- The term `residential real property' means
  real property on which there is situated 1 or more residential dwellings
  used or occupied, or intended to be used or occupied, in whole or in part,
  as the home or residence of 1 or more persons.
  (25) RISK ASSESSMENT- The term `risk assessment' means an on-site
  investigation to determine and report the existence, nature, severity and
  location of lead-based paint hazards in residential dwellings, including--
  (A) information gathering regarding the age and history of the housing
  and occupancy by children under age 6;
  (B) visual inspection;
  (C) limited wipe sampling or other environmental sampling techniques;
  (D) other activity as may be appropriate; and
  (E) provision of a report explaining the results of the investigation.
  (26) SECRETARY- The term `Secretary' means the Secretary of Housing and
  Urban Development.
  (27) TARGET HOUSING- The term `target housing' means any housing constructed
  prior to 1978, except housing for the elderly or persons with disabilities
  (unless any child who is less than 6 years of age resides or is expected
  to reside in such housing for the elderly or persons with disabilities)
  or any 0-bedroom dwelling. In the case of jurisdictions which banned
  the sale or use of lead-based paint prior to 1978, the Secretary, at the
  Secretary's discretion, may designate an earlier date.
Subtitle A--Lead-Based Paint Hazard Reduction
SEC. 1011. GRANTS FOR LEAD-BASED PAINT HAZARD REDUCTION IN TARGET HOUSING.
  (a) GENERAL AUTHORITY- The Secretary is authorized to provide grants
  to eligible applicants to evaluate and reduce lead-based paint hazards
  in priority housing that is not federally assisted housing, federally
  owned housing, or public housing, in accordance with the provisions of
  this section.
  (b) ELIGIBLE APPLICANTS- A State or unit of local government that has an
  approved comprehensive housing affordability strategy under section 105
  of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12705)
  is eligible to apply for a grant under this section.
  (c) FORM OF APPLICATIONS- To receive a grant under this section, a State
  or unit of local government shall submit an application in such form and in
  such manner as the Secretary shall prescribe. An application shall contain--
  (1) a copy of that portion of an applicant's comprehensive housing
  affordability strategy required by section 105(b)(16) of the
  Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.);
  (2) a description of the amount of assistance the applicant seeks under
  this section;
  (3) a description of the planned activities to be undertaken with grants
  under this section, including an estimate of the amount to be allocated
  to each activity;
  (4) a description of the forms of financial assistance to owners and
  occupants of priority housing that will be provided through grants under
  this section; and
  (5) such assurances as the Secretary may require regarding the applicant's
  capacity to carry out the activities.
  (d) SELECTION CRITERIA- The Secretary shall award grants under this section
  on the basis of the merit of the activities proposed to be carried out
  and on the basis of selection criteria, which shall include--
  (1) the extent to which the proposed activities will reduce the risk of
  lead-based paint poisoning to children under the age of 6 who reside in
  priority housing;
  (2) the degree of severity and extent of lead-based paint hazards in the
  jurisdiction to be served;
  (3) the ability of the applicant to leverage State, local, and private
  funds to supplement the grant under this section;
  (4) the ability of the applicant to carry out the proposed activities; and
  (5) such other factors as the Secretary determines appropriate to ensure
  that grants made available under this section are used effectively and to
  promote the purposes of this Act.
  (e) ELIGIBLE ACTIVITIES- A grant under this section may be used to--
  (1) perform risk assessments and inspections in priority housing;
  (2) provide for the interim control of lead-based paint hazards in priority
  housing;
  (3) provide for the abatement of lead-based paint hazards in priority
  housing;
  (4) provide for the additional cost of reducing lead-based paint hazards
  in units undergoing renovation funded by other sources;
  (5) ensure that risk assessments, inspections, and abatements are carried
  out by certified contractors in accordance with section 402 of the Toxic
  Substances Control Act, as added by section 1021 of this Act;
  (6) monitor the blood-lead levels of workers involved in lead hazard
  reduction activities funded under this section;
  (7) assist in the temporary relocation of families forced to vacate priority
  housing while lead hazard reduction measures are being conducted;
  (8) educate the public on the nature and causes of lead poisoning and
  measures to reduce exposure to lead, including exposure due to residential
  lead-based paint hazards;
  (9) test soil, interior surface dust, and the blood-lead levels of children
  under the age of 6 residing in priority housing after lead-based paint
  hazard reduction activity has been conducted, to assure that such activity
  does not cause excessive exposures to lead; and
  (10) carry out such other activities that the Secretary determines
  appropriate to promote the purposes of this Act.
  (f) FORMS OF ASSISTANCE- The applicant may provide the services described in
  this section through a variety of programs, including grants, loans, equity
  investments, revolving loan funds, loan funds, loan guarantees, interest
  write-downs, and other forms of assistance approved by the Secretary.
  (g) TECHNICAL ASSISTANCE AND CAPACITY BUILDING-
  (1) IN GENERAL- The Secretary shall develop the capacity of eligible
  applicants to carry out the requirements of section 105(b)(16) of the
  Cranston-Gonzalez National Affordable Housing Act and to carry out activities
  under this section. In fiscal years 1993 and 1994, the Secretary may make
  grants of up to $200,000 for the purpose of establishing State training,
  certification or accreditation programs that meet the requirements of
  section 402 of the Toxic Substances Control Act, as added by section 1021
  of this Act.
  (2) SET-ASIDE- Of the total amount approved in appropriation Acts under
  subsection (o), there shall be set aside to carry out this subsection
  $3,000,000 for fiscal year 1993 and $3,000,000 for fiscal year 1994.
  (h) MATCHING REQUIREMENT- Each recipient of a grant under this section shall
  make contributions toward the cost of activities that receive assistance
  under this section in an amount not less than 10 percent of the total
  grant amount under this section.
  (i) PROHIBITION OF SUBSTITUTION OF FUNDS- Grants under this subtitle may
  not be used to replace other amounts made available or designated by State
  or local governments for use for the purposes under this subtitle.
  (j) LIMITATION ON USE- An applicant shall ensure that not more than 10
  percent of the grant will be used for administrative expenses associated
  with the activities funded.
  (k) FINANCIAL RECORDS- An applicant shall maintain and provide the Secretary
  with financial records sufficient, in the determination of the Secretary,
  to ensure proper accounting and disbursing of amounts received from a
  grant under this section.
  (l) REPORT- An applicant under this section shall submit to the Secretary,
  for any fiscal year in which the applicant expends grant funds under this
  section, a report that--
  (1) describes the use of the amounts received;
  (2) states the number of risk assessments and the number of inspections
  conducted in residential dwellings;
  (3) states the number of residential dwellings in which lead-based paint
  hazards have been reduced through interim controls;
  (4) states the number of residential dwellings in which lead-based paint
  hazards have been abated; and
  (5) provides any other information that the Secretary determines to be
  appropriate.
  (m) NOTICE OF FUNDING AVAILABILITY- The Secretary shall publish a Notice
  of Funding Availability pursuant to this section not later than 120 days
  after funds are appropriated for this section.
  (n) RELATIONSHIP TO OTHER LAW- Effective 2 years after the date of
  promulgation of regulations under section 402 of the Toxic Substances Control
  Act, no grants for lead-based paint hazard evaluation or reduction may be
  awarded to a State under this section unless such State has an authorized
  program under section 404 of the Toxic Substances Control Act.
  (o) AUTHORIZATION OF APPROPRIATIONS- For the purposes of carrying out this
  Act, there are authorized to be appropriated $125,000,000 for fiscal year
  1993 and $250,000,000 for fiscal year 1994.
SEC. 1012. EVALUATION AND REDUCTION OF LEAD-BASED PAINT HAZARDS IN FEDERALLY
ASSISTED HOUSING.
  (a) GENERAL REQUIREMENTS- Section 302 of the Lead-Based Paint Poisoning
  Prevention Act (42 U.S.C. 4822) is amended--
  (1) by striking the title of the section and inserting:
`REQUIREMENTS FOR HOUSING RECEIVING FEDERAL ASSISTANCE';
  (2) in the first sentence of subsection (a)--
  (A) by striking `The Secretary' and inserting the following:
  `(1) ELIMINATION OF HAZARDS- The Secretary'; and
  (B) by inserting before the period `or otherwise receives more than $5,000
  in project-based assistance under a Federal housing program';
  (3) by striking the second sentence of subsection (a) and inserting:
  `Beginning on January 1, 1995, such procedures shall apply to all such
  housing that constitutes target housing, as defined in section 1004 of
  the Residential Lead-Based Paint Hazard Reduction Act of 1992, and shall
  provide for appropriate measures to conduct risk assessments, inspections,
  interim controls, and abatement of lead-based paint hazards. At a minimum,
  such procedures shall require--
  `(A) the provision of lead hazard information pamphlets, developed pursuant
  to section 406 of the Toxic Substances Control Act, to purchasers and
  tenants;
  `(B) periodic risk assessments and interim controls in accordance with a
  schedule determined by the Secretary, the initial risk assessment of each
  unit constructed prior to 1960 to be conducted not later than January 1,
  1996, and, for units constructed between 1960 and 1978--
  `(i) not less than 25 percent shall be performed by January 1, 1998;
  `(ii) not less than 50 percent shall be performed by January 1, 2000; and
  `(iii) the remainder shall be performed by January 1, 2002;
  `(C) inspection for the presence of lead-based paint prior to
  federally-funded renovation or rehabilitation that is likely to disturb
  painted surfaces;
  `(D) reduction of lead-based paint hazards in the course of rehabilitation
  projects receiving less than $25,000 per unit in Federal funds;
  `(E) abatement of lead-based paint hazards in the course of substantial
  rehabilitation projects receiving more than $25,000 per unit in Federal
  funds;
  `(F) where risk assessment, inspection, or reduction activities have been
  undertaken, the provision of notice to occupants describing the nature
  and scope of such activities and the actual risk assessment or inspection
  reports (including available information on the location of any remaining
  lead-based paint on a surface-by-surface basis); and
  `(G) such other measures as the Secretary deems appropriate.'; and
  (4) in the third sentence, by striking `The Secretary may' and inserting
  the following:
  `(2) ADDITIONAL MEASURES- The Secretary may'.
  (b) MEASUREMENT CRITERIA- Section 302(b) of the Lead-Based Paint
  Poisoning Prevention Act (42 U.S.C. 4822(b)) is amended by striking
  `for the detection' and all that follows through the end of paragraph (2)
  and inserting `for the risk assessment, interim control, inspection, and
  abatement of lead-based paint hazards in housing covered by this section
  shall be based upon guidelines developed pursuant to section 1017 of the
  Residential Lead-Based Paint Hazard Reduction Act of 1992.'.
  (c) INSPECTION- Section 302(c) of the Lead-Based Paint Poisoning Prevention
  Act (42 U.S.C. 4822(c)) is amended--
  (1) in the second sentence, by striking `qualified' and inserting
  `certified'; and
  (2) in the third and fourth sentences, by inserting `or 0.5 percent by
  weight' after `squared'.
  (d) PUBLIC HOUSING- Section 302(d)(1) of the Lead-Based Paint Poisoning
  Prevention Act (42 U.S.C. 4822(d)(1)) is amended--
  (1) in the heading, by striking `CIAP' and inserting `MODERNIZATION'; and
  (2) in the fourth sentence, by striking `to eliminate the lead-based
  paint poisoning hazards' and inserting `of lead-based paint and lead-based
  paint hazards'.
  (e) HOME INVESTMENT PARTNERSHIPS- Section 212(a) of the Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12742(a)) is amended by adding
  at the end the following new paragraph:
  `(5) LEAD-BASED PAINT HAZARDS- A participating jurisdiction may use funds
  provided under this subtitle for the evaluation and reduction of lead-based
  paint hazards, as defined in section 1004 of the Residential Lead-Based
  Paint Hazard Reduction Act of 1992.'.
  (f) COMMUNITY DEVELOPMENT BLOCK GRANTS- Section 105(a) of the Housing and
  Community Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
  (1) in paragraph (19), by striking `and' at the end;
  (2) in paragraph (20), by striking the period at the end and inserting `;
  and'; and
  (3) by adding at the end the following new paragraph:
  `(21) lead-based paint hazard evaluation and reduction, as defined in section
  1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992.'.
  (g) SECTION 8 RENTAL ASSISTANCE- Section 8(c)(2)(B) of the United States
  Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(B)) is amended by adding at the
  end the following: `The Secretary may (at the discretion of the Secretary and
  subject to the availability of appropriations for contract amendments), on
  a project by project basis for projects receiving project-based assistance,
  provide adjustments to the maximum monthly rents to cover the costs of
  evaluating and reducing lead-based paint hazards, as defined in section
  1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992.'.
  (h) HOPE FOR PUBLIC AND INDIAN HOUSING HOMEOWNERSHIP- The United States
  Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
  (1) in section 302(b)--
  (A) by redesignating paragraphs (4) through (8) as paragraphs (5) through
  (9), respectively; and
  (B) by inserting after paragraph (3) the following:
  `(4) inspection for lead-based paint hazards, as required by section 302(a)
  of the Lead-Based Paint Poisoning Prevention Act;'; and
  (2) in section 303(b)--
  (A) by redesignating paragraphs (4) through (13) as paragraphs (5) through
  (14), respectively; and
  (B) by adding after paragraph (3) the following:
  `(4) Abatement of lead-based paint hazards, as required by section 302(a)
  of the Lead-Based Paint Poisoning Prevention Act.'.
  (i) HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY UNITS- The Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
  (1) in section 422(b)--
  (A) by redesignating paragraphs (4) through (8) as paragraphs (5) through
  (9), respectively; and
  (B) by inserting after paragraph (3) the following:
  `(4) inspection for lead-based paint hazards, as required by section 302(a)
  of the Lead-Based Paint Poisoning Prevention Act;'; and
  (2) in section 423(b)--
  (A) by redesignating paragraphs (4) through (13) as paragraphs (5) through
  (14), respectively; and
  (B) by inserting after paragraph (3) the following:
  `(4) Abatement of lead-based paint hazards, as required by section 302(a)
  of the Lead-Based Paint Poisoning Prevention Act.'.
  (j) HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES- The Cranston-Gonzalez
  National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
  (1) in section 442(b)--
  (A) by redesignating paragraphs (4) through (8) as paragraphs (5) through
  (9), respectively; and
  (B) by inserting after paragraph (3) the following:
  `(4) inspection for lead-based paint hazards, as required by section 302(a)
  of the Lead-Based Paint Poisoning Prevention Act;'; and
  (2) in section 443(b)--
  (A) by redesignating paragraphs (4) through (10) as paragraphs (5) through
  (11), respectively; and
  (B) by inserting after paragraph (3) the following:
  `(4) Abatement of lead-based paint hazards, as required by section 302(a)
  of the Lead-Based Paint Poisoning Prevention Act.'.
  (k) FHA INSURANCE FOR SINGLE FAMILY HOMES-
  (1) HOME IMPROVEMENT LOANS- Section 2(a) of the National Housing Act
  (12 U.S.C. 1703(a)) is amended in the fifth paragraph--
  (A) by inserting after the first sentence the following: `Alterations,
  repairs, and improvements upon or in connection with existing structures may
  also include the evaluation and reduction of lead-based paint hazards.'; and
  (B) by adding at the end the following:
  `(4) the terms `evaluation', `reduction', and `lead-based paint hazard'
  have the same meanings given those terms in section 1004 of the Residential
  Lead-Based Paint Hazard Reduction Act of 1992.'.
  (2) REHABILITATION LOANS- Section 203(k)(2)(B) of the National Housing Act
  (12 U.S.C. 1709(k)(2)(B)) is amended by adding at the end the following:
  `The term `rehabilitation' may also include measures to evaluate and reduce
  lead-based paint hazards, as such terms are defined in section 1004 of
  the Residential Lead-Based Paint Hazard Reduction Act of 1992.'.
  (l) FHA INSURANCE FOR MULTIFAMILY HOUSING- Section 221(d)(4)(iv)
  of the National Housing Act (12 U.S.C. 1715l(d)(4)(iv)) is amended by
  inserting after `rehabilitation' the first time it appears the following:
  `(including the cost of evaluating and reducing lead-based paint hazards,
  as such terms are defined in section 1004 of the Residential Lead-Based
  Paint Hazard Reduction Act of 1992)'.
  (m) RURAL HOUSING- Section 501(a) of the Housing Act of 1949 (42 U.S.C. 1471)
  is amended by adding at the end the following:
  `(5) DEFINITIONS- For purposes of this title, the terms `repair', `repairs',
  `rehabilitate', and `rehabilitation' include measures to evaluate and
  reduce lead-based paint hazards, as such terms are defined in section 1004
  of the Residential Lead-Based Paint Hazard Reduction Act of 1992.'.
SEC. 1013. DISPOSITION OF FEDERALLY OWNED HOUSING.
  Section 302(a) of the Lead-Based Paint Poisoning Prevention Act (42
  U.S.C. 4822(a)) (as amended by section 1012(a)) is amended by striking
  the fourth sentence and adding at the end the following:
  `(3) DISPOSITION OF FEDERALLY OWNED HOUSING-
  `(A) PRE-1960 TARGET HOUSING- Beginning on January 1, 1995, procedures
  established under paragraphs (1) and (2) shall require the inspection
  and abatement of lead-based paint hazards in all federally owned target
  housing constructed prior to 1960.
  `(B) TARGET HOUSING CONSTRUCTED BETWEEN 1960 AND 1978- Beginning on
  January 1, 1995, procedures established under paragraphs (1) and (2) shall
  require an inspection for lead-based paint  and lead-based paint hazards
  in all federally owned target housing constructed between 1960 and 1978.
  The results of such inspections shall be made available to prospective
  purchasers, identifying the presence of lead-based paint and lead-based
  paint hazards on a surface-by-surface basis.  The Secretary shall have
  the discretion to waive the requirement of this subparagraph for housing
  in which a federally funded risk assessment, performed by a certified
  contractor, has determined no lead-based paint hazards are present.
  `(C) BUDGET AUTHORITY- To the extent that subparagraphs (A) and (B) increase
  the cost to the Government of outstanding direct loan obligations or loan
  guarantee commitments, such activities shall be treated as modifications
  under section 504(e) of the Federal Credit Reform Act of 1990 and shall
  be subject to the availability of appropriations. To the extent that
  paragraphs (A) and (B) impose additional costs to the Resolution Trust
  Corporation and the Federal Deposit Insurance Corporation, its requirements
  shall be carried out only if appropriations are provided in advance in an
  appropriations Act. In the absence of appropriations sufficient to cover
  the costs of subparagraphs (A) and (B), these requirements shall not apply
  to the affected agency or agencies.
  `(D) DEFINITIONS- For the purposes of this subsection, the terms
  `inspection', `abatement', `lead-based paint hazard', `federally owned
  housing', `target housing', `risk assessment', and `certified contractor'
  have the same meaning given such terms in section 1004 of the Residential
  Lead-Based Paint Hazard Reduction Act of 1992.
  `(4) DEFINITIONS- For purposes of this subsection, the terms `risk
  assessment', `inspection',  `interim control', `abatement', `reduction', and
  `lead-based paint hazard' have the same meaning given such terms in section
  1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992.
SEC. 1014. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY.
  Section 105 of the Cranston-Gonzalez National Affordable Housing Act
  (42 U.S.C. 12705) is amended--
  (1) in subsection (b)(14), by striking `and' at the end;
  (2) in subsection (b)(15), by striking the period at the end and inserting
  `; and';
  (3) by inserting after paragraph (15) of subsection (b) the following
  new paragraph:
  `(16) estimate the number of housing units within the jurisdiction that
  are occupied by low-income families or very low-income families and
  that contain lead-based paint hazards, as defined in section 1004 of
  the Residential Lead-Based Paint Hazard Reduction Act of 1992, outline
  the actions proposed or being taken to evaluate and reduce lead-based
  paint hazards, and describe how lead-based paint hazard reduction will be
  integrated into housing policies and programs.'; and
  (4) in subsection (e)--
  (A) by striking `When preparing' and inserting the following:
  `(1) IN GENERAL- When preparing'; and
  (B) by adding at the end the following new paragraph:
  `(2) LEAD-BASED PAINT HAZARDS- When preparing that portion of a housing
  strategy required by subsection (b)(16), a jurisdiction shall consult
  with State or local health and child welfare agencies and examine existing
  data related to lead-based paint hazards and poisonings, including health
  department data on the addresses of housing units in which children have
  been identified as lead poisoned.'.
SEC. 1015. TASK FORCE ON LEAD-BASED PAINT HAZARD REDUCTION AND FINANCING.
  (a) IN GENERAL- The Secretary, in consultation with the Administrator of
  the Environmental Protection Agency, shall establish a task force to make
  recommendations on expanding resources and efforts to evaluate and reduce
  lead-based paint hazards in private housing.
  (b) MEMBERSHIP- The task force shall include individuals representing the
  Department of Housing and Urban Development, the Farmers Home Administration,
  the Department of Veterans Affairs, the Federal Home Loan Mortgage
  Corporation, the Federal National Mortgage Association, the Environmental
  Protection Agency, employee organizations in the building and construction
  trades industry, landlords, tenants, primary lending institutions, private
  mortgage insurers, single-family and multifamily real estate interests,
  nonprofit housing developers, property liability insurers, public housing
  agencies, low-income housing advocacy organizations, national, State and
  local lead-poisoning prevention advocates and experts, and community-based
  organizations located in areas with substantial rental housing.
  (c) RESPONSIBILITIES- The task force shall make recommendations to the
  Secretary and the Administrator of the Environmental Protection Agency
  concerning--
  (1) incorporating the need to finance lead-based paint hazard reduction
  into underwriting standards;
  (2) developing new loan products and procedures for financing lead-based
  paint hazard evaluation and reduction activities;
  (3) adjusting appraisal guidelines to address lead safety;
  (4) incorporating risk assessments or inspections for lead-based paint as
  a routine procedure in the origination of new residential mortgages;
  (5) revising guidelines, regulations, and educational pamphlets issued by
  the Department of Housing and Urban Development and other Federal agencies
  relating to lead-based paint poisoning prevention;
  (6) reducing the current uncertainties of liability related to lead-based
  paint in rental housing by clarifying standards of care for landlords and
  lenders, and by exploring the `safe harbor' concept;
  (7) increasing the availability of liability insurance for owners of rental
  housing and certified contractors and establishing alternative systems to
  compensate victims of lead-based paint poisoning; and
  (8) evaluating the utility and appropriateness of requiring risk assessments
  or inspections and notification to prospective lessees of rental housing.
  (d) COMPENSATION- The members of the task force shall not receive Federal
  compensation for their participation.
SEC. 1016. NATIONAL CONSULTATION ON LEAD-BASED PAINT HAZARD REDUCTION.
  In carrying out this Act, the Secretary shall consult on an ongoing
  basis with the Administrator of the Environmental Protection Agency,
  the Director of the Centers for Disease Control, other Federal agencies
  concerned with lead poisoning prevention, and the task force established
  pursuant to section 1015.
SEC. 1017. GUIDELINES FOR LEAD-BASED PAINT HAZARD EVALUATION AND REDUCTION
ACTIVITIES.
  Not later than 12 months after the date of enactment of this Act, the
  Secretary, in consultation with the Administrator of the Environmental
  Protection Agency, the Secretary of Labor, and the Secretary of Health
  and Human Services (acting through the Director of the Centers for Disease
  Control), shall issue guidelines for the conduct of federally supported work
  involving risk assessments, inspections, interim controls, and abatement
  of lead-based paint hazards. Such guidelines shall be based upon criteria
  that measure the condition of the housing (and the presence of children
  under age 6 for the purposes of risk assessments) and shall not be based
  upon criteria that measure the health of the residents of the housing.
SEC. 1018. DISCLOSURE OF INFORMATION CONCERNING LEAD UPON TRANSFER OF
RESIDENTIAL PROPERTY.
  (a) LEAD DISCLOSURE IN PURCHASE AND SALE OR LEASE OF TARGET HOUSING-
  (1) LEAD-BASED PAINT HAZARDS- Not later than 2 years after the date
  of enactment of this Act, the Secretary and the Administrator of the
  Environmental Protection Agency shall promulgate regulations under this
  section for the disclosure of lead-based paint hazards in target housing
  which is offered for sale or lease. The regulations shall require that,
  before the purchaser or lessee is obligated under any contract to purchase
  or lease the housing, the seller or lessor shall--
  (A) provide the purchaser or lessee with a lead hazard information pamphlet,
  as prescribed by the Administrator of the Environmental Protection Agency
  under section 406 of the Toxic Substances Control Act;
  (B) disclose to the purchaser or lessee the presence of any known lead-based
  paint, or any known lead-based paint hazards, in such housing and provide
  to the purchaser or lessee any lead hazard evaluation report available to
  the seller or lessor; and
  (C) permit the purchaser a 10-day period (unless the parties mutually
  agree upon a different period of time) to conduct a risk assessment or
  inspection for the presence of lead-based paint hazards.
  (2) CONTRACT FOR PURCHASE AND SALE- Regulations promulgated under this
  section shall provide that every contract for the purchase and sale of
  any interest in target housing shall contain a Lead Warning Statement and
  a statement signed by the purchaser that the purchaser has--
  (A) read the Lead Warning Statement and understands its contents;
  (B) received a lead hazard information pamphlet; and
  (C) had a 10-day opportunity (unless the parties mutually agreed upon a
  different period of time) before becoming obligated under the contract to
  purchase the housing to conduct a risk assessment or inspection for the
  presence of lead-based paint hazards.
  (3) CONTENTS OF LEAD WARNING STATEMENT- The Lead Warning Statement shall
  contain the following text printed in large type on a separate sheet of
  paper attached to the contract:
  `Every purchaser of any interest in residential real property on which a
  residential dwelling was built prior to 1978 is notified that such property
  may present exposure to lead from lead-based paint that  may place young
  children at risk of developing lead poisoning. Lead poisoning in young
  children may produce permanent neurological damage, including learning
  disabilities, reduced intelligence quotient, behavioral problems, and
  impaired memory. Lead poisoning also poses a particular risk to pregnant
  women. The seller of any interest in residential real property is required
  to provide the buyer with any information on lead-based paint hazards from
  risk assessments or inspections in the seller's possession and notify the
  buyer of any known lead-based paint hazards. A risk assessment or inspection
  for possible lead-based paint hazards is recommended prior to purchase.'.
  (4) COMPLIANCE ASSURANCE- Whenever a seller or lessor has entered into
  a contract with an agent for the purpose of selling or leasing a unit
  of target housing, the regulations promulgated under this section shall
  require the agent, on behalf of the seller or lessor, to ensure compliance
  with the requirements of this section.
  (5) PROMULGATION- A suit may be brought against the Secretary of Housing
  and Urban Development and the Administrator of the Environmental Protection
  Agency under section 20 of the Toxic Substances Control Act to compel
  promulgation of the regulations required under this section and the Federal
  district court shall have jurisdiction to order such promulgation.
  (b) PENALTIES FOR VIOLATIONS-
  (1) MONETARY PENALTY- Any person who knowingly violates any provision
  of this section shall be subject to civil money penalties in accordance
  with the provisions of section 102 of the Department of Housing and Urban
  Development Reform Act of 1989 (42 U.S.C. 3545).
  (2) ACTION BY SECRETARY- The Secretary is authorized to take such lawful
  action as may be necessary to enjoin any violation of this section.
  (3) CIVIL LIABILITY- Any person who knowingly violates the provisions of this
  section shall be jointly and severally liable to the purchaser or lessee in
  an amount equal to 3 times the amount of damages incurred by such individual.
  (4) COSTS- In any civil action brought for damages pursuant to paragraph
  (3), the appropriate court may award court costs to the party commencing
  such action, together with reasonable attorney fees and any expert witness
  fees, if that party prevails.
  (5) PROHIBITED ACT- It shall be a prohibited act under section 409 of the
  Toxic Substances Control Act for any person to fail or refuse to comply
  with a provision of this section or with any rule or order issued under
  this section. For purposes of enforcing this section under the Toxic
  Substances Control Act, the penalty for each violation applicable under
  section 16 of that Act shall not be more than $10,000.
  (c) VALIDITY OF CONTRACTS AND LIENS- Nothing in this section shall affect
  the validity or enforceability of any sale or contract for the purchase and
  sale or lease of any interest in residential real property or any loan,
  loan agreement, mortgage, or lien made or arising in connection with a
  mortgage loan, nor shall anything in this section create a defect in title.
  (d) EFFECTIVE DATE- The regulations under this section shall take effect
  3 years after the date of the enactment of this title.
Subtitle B--Lead Exposure Reduction
SEC. 1021. CONTRACTOR TRAINING AND CERTIFICATION.
  (a) AMENDMENT TO THE TOXIC SUBSTANCES CONTROL ACT- The Toxic Substances
  Control Act (15 U.S.C. 2601 et seq.) is amended by adding after title III
  the following new title:
`TITLE IV--LEAD EXPOSURE REDUCTION
`SEC. 401. DEFINITIONS.
  `For the purposes of this title:
  `(1) ABATEMENT- The term `abatement' means any set of measures designed to
  permanently eliminate lead-based paint hazards in accordance with standards
  established by the Administrator under this title. Such term includes--
  `(A) the removal of lead-based paint and lead-contaminated dust, the
  permanent containment or encapsulation of lead-based paint, the replacement
  of lead-painted surfaces or fixtures, and the removal or covering of
  lead-contaminated soil; and
  `(B) all preparation, cleanup, disposal, and postabatement clearance
  testing activities associated with such measures.
  `(2) ACCESSIBLE SURFACE- The term `accessible surface' means an interior
  or exterior surface painted with lead-based paint that is accessible for
  a young child to mouth or chew.
  `(3) DETERIORATED PAINT- The term `deteriorated paint' means any interior
  or exterior paint that is peeling, chipping, chalking or cracking or any
  paint located on an interior or exterior surface or fixture that is damaged
  or deteriorated.
  `(4) EVALUATION- The term `evaluation' means risk assessment, inspection,
  or risk assessment and inspection.
  `(5) FRICTION SURFACE- The term `friction surface' means an interior or
  exterior surface that is subject to abrasion or friction, including certain
  window, floor, and stair surfaces.
  `(6) IMPACT SURFACE- The term `impact surface' means an interior or
  exterior surface that is subject to damage by repeated impacts, for example,
  certain parts of door frames.
  `(7) INSPECTION- The term `inspection' means (A) a surface-by-surface
  investigation to determine the presence of lead-based paint, as provided
  in section 302(c) of the Lead-Based Paint Poisoning Prevention Act, and
  (B) the provision of a report explaining the results of the investigation.
  `(8) INTERIM CONTROLS- The term `interim controls' means a set of measures
  designed to reduce temporarily human exposure or likely exposure to
  lead-based paint hazards, including specialized cleaning, repairs,
  maintenance, painting, temporary containment, ongoing monitoring of
  lead-based paint hazards or potential hazards, and the establishment and
  operation of management and resident education programs.
  `(9) LEAD-BASED PAINT- The term `lead-based paint' means paint or other
  surface coatings that contain lead in excess of 1.0 milligrams per
  centimeter squared or 0.5 percent by weight or (A) in the case of paint
  or other surface coatings on target housing, such lower level as may be
  established by the Secretary of Housing and Urban Development, as defined
  in section 302(c) of the Lead-Based Paint Poisoning Prevention Act, or
  (B) in the case of any other paint or surface coatings, such other level
  as may be established by the Administrator.
  `(10) LEAD-BASED PAINT HAZARD- The term `lead-based paint hazard' means
  any condition that causes exposure to lead from lead-contaminated dust,
  lead-contaminated soil, lead-contaminated paint that is deteriorated or
  present in accessible surfaces, friction surfaces, or impact surfaces
  that would result in adverse human health effects as established by the
  Administrator under this title.
  `(11) LEAD-CONTAMINATED DUST- The term `lead-contaminated dust' means surface
  dust in residential dwellings that contains an area or mass concentration of
  lead in excess of levels determined by the Administrator under this title to
  pose a threat of adverse health effects in pregnant women or young children.
  `(12) LEAD-CONTAMINATED SOIL- The term `lead-contaminated soil' means bare
  soil on residential real property that contains lead at or in excess of
  the levels determined to be hazardous to human health by the Administrator
  under this title.
  `(13) REDUCTION- The term `reduction' means measures designed to reduce
  or eliminate human exposure to lead-based paint hazards through methods
  including interim controls and abatement.
  `(14) RESIDENTIAL DWELLING- The term `residential dwelling' means--
  `(A) a single-family dwelling, including attached structures such as
  porches and stoops; or
  `(B) a single-family dwelling unit in a structure that contains more than
  1 separate residential dwelling unit, and in which each such unit is used
  or occupied, or intended to be used or occupied, in whole or in part,
  as the home or residence of 1 or more persons.
  `(15) RESIDENTIAL REAL PROPERTY- The term `residential real property' means
  real property on which there is situated 1 or more residential dwellings
  used or occupied, or intended to be used or occupied, in whole or in part,
  as the home or residence of 1 or more persons.
  `(16) RISK ASSESSMENT- The term `risk assessment' means an on-site
  investigation to determine and report the existence, nature, severity and
  location of lead-based paint hazards in residential dwellings, including--
  `(A) information gathering regarding the age and history of the housing
  and occupancy by children under age 6;
  `(B) visual inspection;
  `(C) limited wipe sampling or other environmental sampling techniques;
  `(D) other activity as may be appropriate; and
  `(E) provision of a report explaining the results of the investigation.
  `(17) TARGET HOUSING- The term `target housing' means any housing constructed
  prior to 1978, except housing for the elderly or persons with disabilities
  (unless any child who is less than 6 years of age resides or is expected to
  reside in such housing for the elderly or persons with disabilities) or any
  0-bedroom dwelling. In the case of jurisdictions which banned the sale or
  use of lead-based paint prior to 1978, the Secretary of Housing and Urban
  Development, at the Secretary's discretion, may designate an earlier date.
`SEC. 402. LEAD-BASED PAINT ACTIVITIES TRAINING AND CERTIFICATION.
  `(a) REGULATIONS-
  `(1) IN GENERAL- Not later than 18 months after the date of the enactment
  of this section, the Administrator shall, in consultation with the
  Secretary of Labor, the Secretary of Housing and Urban Development,
  and the Secretary of Health and Human Services (acting through the
  Director of the National Institute for Occupational Safety and Health),
  promulgate final regulations governing lead-based paint activities to
  ensure that individuals engaged in such activities are properly trained;
  that training programs are accredited; and that contractors engaged in such
  activities are certified. Such regulations shall contain standards for
  performing lead-based paint activities, taking into account reliability,
  effectiveness, and safety. Such regulations shall require that all risk
  assessment, inspection, and abatement activities performed in target housing
  shall be performed by certified contractors, as such term is defined in
  section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of
  1992. The provisions of this section shall supersede the provisions set
  forth under the heading `Lead Abatement Training and Certification' and
  under the heading `Training Grants' in title III of the Act entitled `An Act
  making appropriations for the Departments of Veterans Affairs and Housing
  and Urban Development, and for sundry independent agencies, commissions,
  corporations, and offices for the fiscal year ending September 30, 1992,
  and for other purposes', Public Law 102-139, and upon the enactment of this
  section the provisions set forth in such public law under such headings
  shall cease to have any force and effect.
  `(2) ACCREDITATION OF TRAINING PROGRAMS- Final regulations promulgated under
  paragraph (1) shall contain specific requirements for the accreditation of
  lead-based paint activities training programs for workers, supervisors,
  inspectors and planners, and other individuals involved in lead-based
  paint activities, including, but not limited to, each of the following:
  `(A) Minimum requirements for the accreditation of training providers.
  `(B) Minimum training curriculum requirements.
  `(C) Minimum training hour requirements.
  `(D) Minimum hands-on training requirements.
  `(E) Minimum trainee competency and proficiency requirements.
  `(F) Minimum requirements for training program quality control.
  `(3) ACCREDITATION AND CERTIFICATION FEES- The Administrator (or the State
  in the case of an authorized State program) shall impose a fee on--
  `(A) persons operating training programs accredited under this title; and
  `(B) lead-based paint activities contractors certified in accordance with
  paragraph (1).
The fees shall be established at such level as is necessary to cover the
costs of administering and enforcing the standards and regulations under
this section which are applicable to such programs and contractors. The fee
shall not be imposed on any State, local government, or nonprofit training
program. The Administrator (or the State in the case of an authorized State
program) may waive the fee for lead-based paint activities contractors under
subparagraph (A) for the purpose of training their own employees.
  `(b) LEAD-BASED PAINT ACTIVITIES- For purposes of this title, the term
  `lead-based paint activities' means--
  `(1) in the case of target housing, risk assessment, inspection, and
  abatement; and
  `(2) in the case of any public building constructed before 1978, commercial
  building, bridge, or other structure or superstructure, identification
  of lead-based paint and materials containing lead-based paint, deleading,
  removal of lead from bridges, and demolition.
For purposes of paragraph (2), the term `deleading' means activities conducted
by a person who offers to eliminate lead-based paint or lead-based paint
hazards or to plan such activities.
  `(c) RENOVATION AND REMODELING-
  `(1) GUIDELINES- In order to reduce the risk of exposure to lead in
  connection with renovation and remodeling of target housing, public buildings
  constructed before 1978, and commercial buildings, the Administrator shall,
  within 18 months after the enactment of this section, promulgate guidelines
  for the conduct of such renovation and remodeling activities which may
  create a risk of exposure to dangerous levels of lead. The Administrator
  shall disseminate such guidelines to persons engaged in such renovation
  and remodeling through hardware and paint stores, employee organizations,
  trade groups, State and local agencies, and through other appropriate means.
  `(2) STUDY OF CERTIFICATION- The Administrator shall conduct a study of
  the extent to which persons engaged in various types of renovation and
  remodeling activities in target housing, public buildings constructed before
  1978, and commercial buildings are exposed to lead in the conduct of such
  activities or disturb lead and create a lead-based paint hazard on a regular
  or occasional basis. The Administrator shall complete such study and publish
  the results thereof within 30 months after the enactment of this section.
  `(3) CERTIFICATION DETERMINATION- Within 4 years after the enactment of this
  section, the Administrator shall revise the regulations under subsection (a)
  to apply the regulations to renovation or remodeling activities in target
  housing, public buildings constructed before 1978, and commercial buildings
  that create lead-based paint hazards. In determining which contractors are
  engaged in such activities, the Administrator shall utilize the results of
  the study under paragraph (2) and consult with the representatives of labor
  organizations, lead-based paint activities contractors, persons engaged in
  remodeling and renovation, experts in lead health effects, and others. If
  the Administrator determines that any category of contractors engaged in
  renovation or remodeling does not require certification, the Administrator
  shall publish an explanation of the basis for that determination.
`SEC. 403. IDENTIFICATION OF DANGEROUS LEVELS OF LEAD.
  `Within 18 months after the enactment of this title, the Administrator
  shall promulgate regulations which shall identify, for purposes of this
  title and the Residential Lead-Based Paint Hazard Reduction Act of 1992,
  lead-based paint hazards, lead-contaminated dust, and lead-contaminated soil.
`SEC. 404. AUTHORIZED STATE PROGRAMS.
  `(a) APPROVAL- Any State which seeks to administer and enforce the
  standards, regulations, or other requirements established under section
  402 or 406, or both, may, after notice and opportunity for public hearing,
  develop and submit to the Administrator an application, in such form as the
  Administrator shall require, for authorization of such a State program. Any
  such State may also certify to the Administrator at the time of submitting
  such program that the State program meets the requirements of paragraphs
  (1) and (2) of subsection (b). Upon submission of such certification,
  the State program shall be deemed to be authorized under this section,
  and shall apply in such State in lieu of the corresponding Federal program
  under section 402 or 406, or both, as the case may be, until such time as
  the Administrator disapproves the program or withdraws the authorization.
  `(b) APPROVAL OR DISAPPROVAL- Within 180 days following submission of
  an application under subsection (a), the Administrator shall approve or
  disapprove the application. The Administrator may approve the application
  only if, after notice and after opportunity for public hearing, the
  Administrator finds that--
  `(1) the State program is at least as protective of human health and the
  environment as the Federal program under section 402 or 406, or both,
  as the case may be, and
  `(2) such State program provides adequate enforcement.
Upon authorization of a State program under this section, it shall be unlawful
for any person to violate or fail or refuse to comply with any requirement
of such program.
  `(c) WITHDRAWAL OF AUTHORIZATION- If a State is not administering
  and enforcing a program authorized under this section in compliance
  with standards, regulations, and other requirements of this title,
  the Administrator shall so notify the State and, if corrective action
  is not completed within a reasonable time, not to exceed 180 days, the
  Administrator shall withdraw authorization of such program and establish
  a Federal program pursuant to this title.
  `(d) MODEL STATE PROGRAM- Within 18 months after the enactment of this title,
  the Administrator shall promulgate a model State program which may be adopted
  by any State which seeks to administer and enforce a State program under
  this title. Such model program shall, to the extent practicable, encourage
  States to utilize existing State and local certification and accreditation
  programs and procedures. Such program shall encourage reciprocity among
  the States with respect to the certification under section 402.
  `(e) OTHER STATE REQUIREMENTS- Nothing in this title shall be construed
  to prohibit any State or political subdivision thereof from imposing any
  requirements which are more stringent than those imposed by this title.
  `(f) STATE AND LOCAL CERTIFICATION- The regulations under this title shall,
  to the extent appropriate, encourage States to seek program authorization
  and to use existing State and local certification and accreditation
  procedures, except that a State or local government shall not require
  more than 1 certification under this section for any lead-based paint
  activities contractor to carry out lead-based paint activities in the
  State or political subdivision thereof.
  `(g) GRANTS TO STATES- The Administrator is authorized to make grants
  to States to develop and carry out authorized State programs under this
  section. The grants shall be subject to such terms and conditions as the
  Administrator may establish to further the purposes of this title.
  `(h) ENFORCEMENT BY ADMINISTRATOR- If a State does not have a State
  program authorized under this section and in effect by the date which is
  2 years after promulgation of the regulations under section 402 or 406,
  the Administrator shall, by such date, establish a Federal program for
  section 402 or 406 (as the case may be) for such State and administer and
  enforce such program in such State.
`SEC. 405. LEAD ABATEMENT AND MEASUREMENT.
  `(a) PROGRAM TO PROMOTE LEAD EXPOSURE ABATEMENT- The Administrator,
  in cooperation with other appropriate Federal departments and agencies,
  shall conduct a comprehensive program to promote safe, effective, and
  affordable monitoring, detection, and abatement of lead-based paint and
  other lead exposure hazards.
  `(b) STANDARDS FOR ENVIRONMENTAL SAMPLING LABORATORIES- (1) The Administrator
  shall establish protocols, criteria, and minimum performance standards for
  laboratory analysis of lead in paint films, soil, and dust. Within 2 years
  after the enactment of this title, the Administrator, in consultation with
  the Secretary of Health and Human Services, shall establish a program to
  certify laboratories as qualified to test substances for lead content unless
  the Administrator determines, by the date specified in this paragraph, that
  effective voluntary accreditation programs are in place and operating on a
  nationwide basis at the time of such determination. To be certified under
  such program, a laboratory shall, at a minimum, demonstrate an ability to
  test substances accurately for lead content.
  `(2) Not later than 24 months after the date of the enactment of this
  section, and annually thereafter, the Administrator shall publish and make
  available to the public a list of certified or accredited environmental
  sampling laboratories.
  `(3) If the Administrator determines under paragraph (1) that effective
  voluntary accreditation programs are in place for environmental
  sampling laboratories, the Administrator shall review the performance and
  effectiveness of such programs within 3 years after such determination. If,
  upon such review, the Administrator determines that the voluntary
  accreditation programs are not effective in assuring the quality and
  consistency of laboratory analyses, the Administrator shall, not more
  than 12 months thereafter, establish a certification program that meets
  the requirements of paragraph (1).
  `(c) EXPOSURE STUDIES- (1) The Secretary of Health and Human Services
  (hereafter in this subsection referred to as the `Secretary'), acting
  through the Director of the Centers for Disease Control, (CDC), and the
  Director of the National Institute of Environmental Health Sciences,
  shall jointly conduct a study of the sources of lead exposure in children
  who have elevated blood lead levels (or other indicators of elevated lead
  body burden), as defined by the Director of the Centers for Disease Control.
  `(2) The Secretary, in consultation with the Director of the National
  Institute for Occupational Safety and Health, shall conduct a comprehensive
  study of means to reduce hazardous occupational lead abatement
  exposures. This study shall include, at a minimum, each of the following--
  `(A) Surveillance and intervention capability in the States to identify
  and prevent hazardous exposures to lead abatement workers.
  `(B) Demonstration of lead abatement control methods and devices and work
  practices to identify and prevent hazardous lead exposures in the workplace.
  `(C) Evaluation, in consultation with the National Institute of Environmental
  Health Sciences, of health effects of low and high levels of occupational
  lead exposures on reproductive, neurological, renal, and cardiovascular
  health.
  `(D) Identification of high risk occupational settings to which prevention
  activities and resources should be targeted.
  `(E) A study assessing the potential exposures and risks from lead to
  janitorial and custodial workers.
  `(3) The studies described in paragraphs (1) and (2) shall, as appropriate,
  examine the relative contributions to elevated lead body burden from each
  of the following:
  `(A) Drinking water.
  `(B) Food.
  `(C) Lead-based paint and dust from lead-based paint.
  `(D) Exterior sources such as ambient air and lead in soil.
  `(E) Occupational exposures, and other exposures that the Secretary
  determines to be appropriate.
  `(4) Not later than 30 months after the date of the enactment of this
  section, the Secretary shall submit a report to the Congress concerning
  the studies described in paragraphs (1) and (2).
  `(d) PUBLIC EDUCATION- (1) The Administrator, in conjunction with the
  Secretary of Health and Human Services, acting through the Director of
  the Agency for Toxic Substances and Disease Registry, and in conjunction
  with the Secretary of Housing and Urban Development, shall sponsor public
  education and outreach activities to increase public awareness of--
  `(A) the scope and severity of lead poisoning from household sources;
  `(B) potential exposure to sources of lead in schools and childhood day
  care centers;
  `(C) the implications of exposures for men and women, particularly those
  of childbearing age;
  `(D) the need for careful, quality, abatement and management actions;
  `(E) the need for universal screening of children;
  `(F) other components of a lead poisoning prevention program;
  `(G) the health consequences of lead exposure resulting from lead-based
  paint hazards;
  `(H) risk assessment and inspection methods for lead-based paint hazards; and
  `(I) measures to reduce the risk of lead exposure from lead-based paint.
  `(2) The activities described in paragraph (1) shall be designed to provide
  educational services and information to--
  `(A) health professionals;
  `(B) the general public, with emphasis on parents of young children;
  `(C) homeowners, landlords, and tenants;
  `(D) consumers of home improvement products;
  `(E) the residential real estate industry; and
  `(F) the home renovation industry.
  `(3) In implementing the activities described in paragraph (1), the
  Administrator shall assure coordination with the President's Commission on
  Environmental Quality's education and awareness campaign on lead poisoning.
  `(4) The Administrator, in consultation with the Chairman of the Consumer
  Product Safety Commission, shall develop information to be distributed by
  retailers of home improvement products to provide consumers with practical
  information related to the hazards of renovation and remodeling where
  lead-based paint may be present.
  `(e) TECHNICAL ASSISTANCE-
  `(1) CLEARINGHOUSE- Not later than 6 months after the enactment of this
  subsection, the Administrator shall establish, in consultation with
  the Secretary of Housing and Urban Development and the Director of the
  Centers for Disease Control, a National Clearinghouse on Childhood Lead
  Poisoning (hereinafter in this section referred to as `Clearinghouse'). The
  Clearinghouse shall--
  `(A) collect, evaluate, and disseminate current information on the assessment
  and reduction of lead-based paint hazards, adverse health effects, sources
  of exposure, detection and risk assessment methods, environmental hazards
  abatement, and clean-up standards;
  `(B) maintain a rapid-alert system to inform certified lead-based paint
  activities contractors of significant developments in research related to
  lead-based paint hazards; and
  `(C) perform any other duty that the Administrator determines necessary
  to achieve the purposes of this Act.
  `(2) HOTLINE- Not later than 6 months after the enactment of this subsection,
  the Administrator, in cooperation with other Federal agencies and with State
  and local governments, shall establish a single lead-based paint hazard
  hotline to provide the public with answers to questions about lead poisoning
  prevention and referrals to the Clearinghouse for technical information.
  `(f) PRODUCTS FOR LEAD-BASED PAINT ACTIVITIES- Not later than 30 months
  after the date of enactment of this section, the President shall, after
  notice and opportunity for comment, establish by rule appropriate criteria,
  testing protocols, and performance characteristics as are necessary to
  ensure, to the greatest extent possible and consistent with the purposes
  and policy of this title, that lead-based paint hazard evaluation and
  reduction products introduced into commerce after a period specified in the
  rule are effective for the intended use described by the manufacturer. The
  rule shall identify the types or classes of products that are subject to
  such rule. The President, in implementation of the rule, shall, to the
  maximum extent possible, utilize independent testing laboratories, as
  appropriate, and consult with such entities and others in developing the
  rules. The President may delegate the authorities under this subsection
  to the Environmental Protection Agency or the Secretary of Commerce or
  such other appropriate agency.
`SEC. 406. LEAD HAZARD INFORMATION PAMPHLET.
  `(a) LEAD HAZARD INFORMATION PAMPHLET- Not later than 2 years after the
  enactment of this section, after notice and opportunity for comment, the
  Administrator of the Environmental Protection Agency, in consultation with
  the Secretary of Housing and Urban Development and with the Secretary of
  Health and Human Services, shall publish, and from time to time revise, a
  lead hazard information pamphlet to be used in connection with this title
  and section 1018 of the Residential Lead-Based Paint Hazard Reduction Act
  of 1992. The pamphlet shall--
  `(1) contain information regarding the health risks associated with exposure
  to lead;
  `(2) provide information on the presence of lead-based paint hazards in
  federally assisted, federally owned, and target housing;
  `(3) describe the risks of lead exposure for children under 6 years of
  age, pregnant women, women of childbearing age, persons involved in home
  renovation, and others residing in a dwelling with lead-based paint hazards;
  `(4) describe the risks of renovation in a dwelling with lead-based paint
  hazards;
  `(5) provide information on approved methods for evaluating and reducing
  lead-based paint hazards and their effectiveness in identifying, reducing,
  eliminating, or preventing exposure to lead-based paint hazards;
  `(6) advise persons how to obtain a list of contractors certified pursuant
  to this title in lead-based paint hazard evaluation and reduction in the
  area in which the pamphlet is to be used;
  `(7) state that a risk assessment or inspection for lead-based paint is
  recommended prior to the purchase, lease, or renovation of target housing;
  `(8) state that certain State and local laws impose additional requirements
  related to lead-based paint in housing and provide a listing of Federal,
  State, and local agencies in each State, including address and telephone
  number, that can provide information about applicable laws and available
  governmental and private assistance and financing; and
  `(9) provide such other information about environmental hazards associated
  with residential real property as the Administrator deems appropriate.
  `(b) RENOVATION OF TARGET HOUSING- Within 2 years after the enactment
  of this section, the Administrator shall promulgate regulations under
  this subsection to require each person who performs for compensation a
  renovation of target housing to provide a lead hazard information pamphlet
  to the owner and occupant of such housing prior to commencing the renovation.
`SEC. 407.  REGULATIONS.
  `The regulations of the Administrator under this title shall include such
  recordkeeping and reporting requirements as may be necessary to insure
  the effective implementation of this title. The regulations may be amended
  from time to time as necessary.
`SEC. 408. CONTROL OF LEAD-BASED PAINT HAZARDS AT FEDERAL FACILITIES.
  `Each department, agency, and instrumentality of executive, legislative,
  and judicial branches of the Federal Government (1) having jurisdiction
  over any property or facility, or (2) engaged in any activity resulting,
  or which may result, in a lead-based paint hazard, and each officer, agent,
  or employee thereof, shall be subject to, and comply with, all Federal,
  State, interstate, and local requirements, both substantive and procedural
  (including any requirement for certification, licensing, recordkeeping,
  or reporting or any provisions for injunctive relief and such sanctions as
  may be imposed by a court to enforce such relief) respecting lead-based
  paint, lead-based paint activities, and lead-based paint hazards in
  the same manner, and to the same extent as any nongovernmental entity
  is subject to such requirements, including the payment of reasonable
  service charges. The Federal, State, interstate, and local substantive
  and procedural requirements referred to in this subsection include,
  but are not limited to, all administrative orders and all civil and
  administrative penalties and fines regardless of whether such penalties
  or fines are punitive or coercive in nature, or whether imposed for
  isolated, intermittent or continuing violations.  The United States hereby
  expressly waives any immunity otherwise applicable to the United States
  with respect to any such substantive or procedural requirement (including,
  but not limited to, any injunctive relief, administrative order, or civil
  or administrative penalty or fine referred to in the preceding sentence,
  or reasonable service charge).  The reasonable service charges referred to
  in this section include, but are not limited to, fees or charges assessed
  for certification and licensing, as well as any other nondiscriminatory
  charges that are assessed in connection with a Federal, State, interstate,
  or local lead-based paint, lead-based paint activities, or lead-based paint
  hazard activities program.   No agent, employee, or officer of the United
  States shall be personally liable for any civil penalty under any Federal,
  State, interstate, or local law relating to lead-based paint, lead-based
  paint activities, or lead-based paint hazards with respect to any act or
  omission within the scope of his official duties.
`SEC. 409. PROHIBITED ACTS.
  `It shall be unlawful for any person to fail or refuse to comply with a
  provision of this title or with any rule or order issued under this title.
`SEC. 410. RELATIONSHIP TO OTHER FEDERAL LAW.
  `Nothing in this title shall affect the authority of other appropriate
  Federal agencies to establish or enforce any requirements which are at
  least as stringent as those established pursuant to this title.
`SEC. 411. GENERAL PROVISIONS RELATING TO ADMINISTRATIVE PROCEEDINGS.
  `(a) APPLICABILITY- This section applies to the promulgation or revision
  of any regulation issued under this title.
  `(b) RULEMAKING DOCKET- Not later than the date of proposal of any action to
  which this section applies, the Administrator shall establish a rulemaking
  docket for such action (hereinafter in this subsection referred to as a
  `rule'). Whenever a rule applies only within a particular State, a second
  (identical) docket shall be established in the appropriate regional office
  of the Environmental Protection Agency.
  `(c) INSPECTION AND COPYING- (1) The rulemaking docket required under
  subsection (b) shall be open for inspection by the public at reasonable
  times specified in the notice of proposed rulemaking. Any person may copy
  documents contained in the docket. The Administrator shall provide copying
  facilities which may be used at the expense of the person seeking copies,
  but the Administrator may waive or reduce such expenses in such instances
  as the public interest requires. Any person may request copies by mail if
  the person pays the expenses, including personnel costs to do the copying.
  `(2)(A) Promptly upon receipt by the agency, all written comments and
  documentary information on the proposed rule received from any person for
  inclusion in the docket during the comment period shall be placed in the
  docket. The transcript of public hearings, if any, on the proposed rule
  shall also be included in the docket promptly upon receipt from the person
  who transcribed such hearings. All documents which become available after
  the proposed rule has been published and which the Administrator determines
  are of central relevance to the rulemaking shall be placed in the docket
  as soon as possible after their availability.
  `(B) The drafts of proposed rules submitted by the Administrator to the
  Office of Management and Budget for any interagency review process prior
  to proposal of any such rule, all documents accompanying such drafts, and
  all written comments thereon by other agencies and all written responses to
  such written comments by the Administrator shall be placed in the docket
  no later than the date of proposal of the rule. The drafts of the final
  rule submitted for such review process prior to promulgation and all
  such written comments thereon, all documents accompanying such drafts,
  and written responses thereto shall be placed in the docket no later than
  the date of promulgation.
  `(d) EXPLANATION- (1) The promulgated rule shall be accompanied by an
  explanation of the reasons for any major changes in the promulgated rule
  from the proposed rule.
  `(2) The promulgated rule shall also be accompanied by a response to each
  of the significant comments, criticisms, and new data submitted in written
  or oral presentations during the comment period.
  `(3) The promulgated rule may not be based (in part or whole) on any
  information or data which has not been placed in the docket as of the date
  of such promulgation.
  `(e) JUDICIAL REVIEW- The material referred to in subsection (c)(2)(B)
  shall not be included in the record for judicial review.
  `(f) EFFECTIVE DATE- The requirements of this section shall take effect
  with respect to any rule the proposal of which occurs after 90 days after
  the date of the enactment of this section.
`SEC. 412. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated to carry out the purposes of this
  title such sums as may be necessary.'.
  (b) TECHNICAL AND CONFORMING AMENDMENTS- The Toxic Substances Control Act
  (15 U.S.C. 2610) is amended as follows:
  (1) In paragraph (1) of section 7(a), strike `or 6' and insert `6, or
  title IV' and after `5' insert `or title IV'.
  (2) In the first sentence of subsection (a) of section 11:
  (A) Strike `or mixtures' before `are manufactured' and insert `, mixtures,
  or products subject to title IV'.
  (B) Insert `such products,' before `or such articles'.
  (3) In paragraph (1) of subsection (b) of section 11, strike `or mixtures'
  and insert `, mixtures, or products subject to title IV'.
  (4) In  paragraph (1) of section 13(a), strike `or 6' in each place it
  appears and insert `, 6, or title IV' and strike `or 7' and insert `,
  7 or title IV'.
  (5) In section 16, insert `or 409' after `section 15' each place it appears.
  (6) In section 17, amend subsection (a) to read as follows:
  `(a) SPECIFIC ENFORCEMENT- (1) The district courts of the United States
  shall have jurisdiction over civil actions to--
  `(A) restrain any violation of section 15 or 409,
  `(B) restrain any person from taking any action prohibited by section 5,
  6, or title IV, or by a rule or order under section 5, 6, or title IV,
  `(C) compel the taking of any action required by or under this Act, or
  `(D) direct any manufacturer or processor of a chemical substance, mixture,
  or product subject to title IV manufactured or processed in violation
  of section 5, 6, or title IV, or a rule or order under section 5, 6, or
  title IV, and distributed in commerce, (i) to give notice of such fact
  to distributors in commerce of such substance, mixture, or product and,
  to the extent reasonably ascertainable, to other persons in possession of
  such substance, mixture, or product or exposed to such substance, mixture,
  or product, (ii) to give public notice of such risk of injury, and (iii)
  to either replace or repurchase such substance, mixture, or product,
  whichever the person to which the requirement is directed elects.'.
  (7) In the first sentence of subsection (b) of section 17--
  (A) strike `or mixture' after `Any chemical substance' and inserting `,
  mixture, or product subject to title IV'; and
  (B) insert `product,' before `or article' in each place that it appears.
  (8) In section 19--
  (A) In the first sentence of subsection (a), after `title II' insert `or IV'.
  (B) Before the semicolon at the end of subsection (a)(3)(B) insert `and in
  the case of a rule under title IV, the finding required for the issuance
  of such a rule'.
  (9) In section 20(a)(1) after `title II' insert `or IV' in each place
  it appears.
  (10) Add at the end of the table of contents in section 1 the following:
`TITLE IV--LEAD EXPOSURE REDUCTION
`Sec. 401. Definitions.
`Sec. 402. Lead-based paint activities training and certification.
`Sec. 403. Identification of dangerous levels of lead.
`Sec. 404. Authorized State programs.
`Sec. 405. Lead abatement and measurement.
`Sec. 406. Lead hazard information pamphlet.
`Sec. 407. Regulations.
`Sec. 408. Control of lead-based paint hazards at Federal facilities.
`Sec. 409. Prohibited acts.
`Sec. 410. Relationship to other Federal law.
`Sec. 411. General provisions relating to administrative proceedings.
`Sec. 412. Authorization of appropriations.'.
  (c) SHORT TITLE- This subtitle may be cited as the `Lead-Based Paint
  Exposure Reduction Act'.
Subtitle C--Worker Protection
SEC. 1031. WORKER PROTECTION.
  Not later than 180 days after the enactment of this Act, the Secretary
  of Labor shall issue an interim final regulation regulating occupational
  exposure to lead in the construction industry. Such interim final regulation
  shall provide employment and places of employment to employees which are
  as safe and healthful as those which would prevail under the Department of
  Housing and Urban Development guidelines published at Federal Register 55,
  page 38973 (September 28, 1990) (Revised Chapter 8). Such interim final
  regulations shall take effect upon issuance (except that such regulations
  may include a reasonable delay in the effective date), shall have the
  legal effect of an Occupational Safety and Health Standard, and shall
  apply until a final standard becomes effective under section 6 of the
  Occupational Safety and Health Act of 1970.
SEC. 1032. COORDINATION BETWEEN ENVIRONMENTAL PROTECTION AGENCY AND DEPARTMENT
OF LABOR.
  The Secretary of Labor, in promulgating regulations under section 1031,
  shall consult and coordinate with the Administrator of the Environmental
  Protection Agency for the purpose of achieving the maximum enforcement of
  title IV of the Toxic Substances Control Act and the Occupational Safety
  and Health Act of 1970 while imposing the least burdens of duplicative
  requirements on those subject to such title and Act and for other purposes.
SEC. 1033. NIOSH RESPONSIBILITIES.
  Section 22 of the Occupational Safety and Health Act of 1970 is amended
  by adding the following new subsection at the end thereof:
  `(g) LEAD-BASED PAINT ACTIVITIES-
  `(1) TRAINING GRANT PROGRAM- (A) The Institute, in conjunction with the
  Administrator of the Environmental Protection Agency, may make grants for
  the training and education of workers and supervisors who are or may be
  directly engaged in lead-based paint activities.
  `(B) Grants referred to in subparagraph (A) shall be awarded to nonprofit
  organizations (including colleges and universities, joint labor-management
  trust funds, States, and nonprofit government employee organizations)--
  `(i) which are engaged in the training and education of workers and
  supervisors who are or who may be directly engaged in lead-based paint
  activities (as defined in title IV of the Toxic Substances Control Act),
  `(ii) which have demonstrated experience in implementing and operating
  health and safety training and education programs, and
  `(iii) with a demonstrated ability to reach, and involve in lead-based
  paint training programs, target populations of individuals who are or will
  be engaged in lead-based paint activities.
Grants under this subsection shall be awarded only to those organizations
that fund at least 30 percent of their lead-based paint activities training
programs from non-Federal sources, excluding in-kind contributions. Grants
may also be made to local governments to carry out such training and education
for their employees.
  `(C) There are authorized to be appropriated, at a minimum, $10,000,000
  to the Institute for each of the fiscal years 1994 through 1997 to make
  grants under this paragraph.
  `(2) EVALUATION OF PROGRAMS- The Institute shall conduct periodic and
  comprehensive assessments of the efficacy of the worker and supervisor
  training programs developed and offered by those receiving grants under
  this section. The Director shall prepare reports on the results of these
  assessments addressed to the Administrator of the Environmental Protection
  Agency to include recommendations as may be appropriate for the revision
  of these programs. The sum of $500,000 is authorized to be appropriated
  to the Institute for each of the fiscal years 1994 through 1997 to carry
  out this paragraph.'.
Subtitle D--Research and Development
PART 1--HUD RESEARCH
SEC. 1051. RESEARCH ON LEAD EXPOSURE FROM OTHER SOURCES.
  The Secretary, in cooperation with other Federal agencies, shall conduct
  research on strategies to reduce the risk of lead exposure from other
  sources, including exterior soil and interior lead dust in carpets,
  furniture, and forced air ducts.
SEC. 1052. TESTING TECHNOLOGIES.
  The Secretary, in cooperation with other Federal agencies, shall conduct
  research to--
  (1) develop improved methods for evaluating lead-based paint hazards
  in housing;
  (2) develop improved methods for reducing lead-based paint hazards in
  housing;
  (3) develop improved methods for measuring lead in paint films, dust,
  and soil samples;
  (4) establish performance standards for various detection methods, including
  spot test kits;
  (5) establish performance standards for lead-based paint hazard reduction
  methods, including the use of encapsulants;
  (6) establish appropriate cleanup standards;
  (7) evaluate the efficacy of interim controls in various hazard situations;
  (8) evaluate the relative performance of various abatement techniques;
  (9) evaluate the long-term cost-effectiveness of interim control and
  abatement strategies; and
  (10) assess the effectiveness of hazard evaluation and reduction activities
  funded by this Act.
SEC. 1053. AUTHORIZATION.
  Of the total amount approved in appropriation Acts under section 1011(o),
  there shall be set aside to carry out this part $5,000,000 for fiscal year
  1993, and $5,000,000 for fiscal year 1994.
PART 2--GAO REPORT
SEC. 1056. FEDERAL IMPLEMENTATION AND INSURANCE STUDY.
  (a) FEDERAL IMPLEMENTATION STUDY- The Comptroller General of the United
  States shall assess the effectiveness of Federal enforcement and compliance
  with lead safety laws and regulations, including any changes needed in
  annual inspection procedures to identify lead-based paint hazards in units
  receiving assistance under subsections (b) and (o) of section 8 of the
  United States Housing Act of 1937.
  (b) INSURANCE STUDY- The Comptroller General of the United States shall
  assess the availability of liability insurance for owners of residential
  housing that contains lead-based paint and persons engaged in lead-based
  paint hazard evaluation and reduction activities. In carrying out the
  assessment, the Comptroller General shall--
  (1) analyze any precedents in the insurance industry for the containment
  and abatement of environmental hazards, such as asbestos, in federally
  assisted housing;
  (2) provide an assessment of the recent insurance experience in the public
  housing lead hazard identification and reduction program; and
  (3) recommend measures for increasing the availability of liability
  insurance to owners and contractors engaged in federally supported work.
Subtitle E--Reports
SEC. 1061. REPORTS OF THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT.
  (a) ANNUAL REPORT- The Secretary shall transmit to the Congress an annual
  report that--
  (1) sets forth the Secretary's assessment of the progress made in
  implementing the various programs authorized by this title;
  (2) summarizes the most current health and environmental studies on
  childhood lead poisoning, including studies that analyze the relationship
  between interim control and abatement activities and the incidence of lead
  poisoning in resident children;
  (3) recommends legislative and administrative initiatives that may improve
  the performance by the Department of Housing and Urban Development in
  combating lead hazards through the expansion of lead hazard evaluation
  and reduction activities;
  (4) describes the results of research carried out in accordance with
  subtitle D; and
  (5) estimates the amount of Federal assistance annually expended on lead
  hazard evaluation and reduction activities.
  (b) BIENNIAL REPORT-
  (1) IN GENERAL- 24 months after the date of enactment of this Act, and at
  the end of every 24-month period thereafter, the Secretary shall report
  to the Congress on the progress of the Department of Housing and Urban
  Development in implementing expanded lead-based paint hazard evaluation
  and reduction activities.
  (2) CONTENTS- The report shall--
  (A) assess the effectiveness of section 1018 in making the public aware
  of lead-based paint hazards;
  (B) estimate the extent to which lead-based paint hazard evaluation
  and reduction activities are being conducted in the various categories
  of housing;
  (C) monitor and report expenditures for lead-based paint hazard evaluation
  and reduction for programs within the jurisdiction of the Department of
  Housing and Urban Development;
  (D) identify the infrastructure needed to eliminate lead-based paint hazards
  in all housing as expeditiously as possible, including cost-effective
  technology, standards and regulations, trained and certified contractors,
  certified laboratories, liability insurance, private financing techniques,
  and appropriate Government subsidies;
  (E) assess the extent to which the infrastructure described in
  subparagraph (D) exists, make recommendations to correct shortcomings,
  and provide estimates of the costs of measures needed to build an adequate
  infrastructure; and
  (F) include any additional information that the Secretary deems appropriate.
TITLE XI--NEW TOWNS DEMONSTRATION PROGRAM FOR EMERGENCY RELIEF OF LOS ANGELES
SEC. 1101. AUTHORITY.
  To provide for the revitalization and renewal of inner city neighborhoods
  in the areas of Los Angeles, California, that were damaged by the
  civil disturbances during April and May of 1992, and to demonstrate the
  effectiveness of new town developments in revitalizing and restoring
  depressed and underprivileged inner city neighborhoods, the Secretary of
  Housing and Urban Development shall, to the extent or in such amounts as
  are provided in appropriation Acts, make any assistance authorized under
  this title available under this title to units of general local government,
  governing boards, and eligible mortgagors in accordance with the provisions
  of this title.
SEC. 1102. NEW TOWN PLAN.
  (a) REQUIREMENT- The Secretary may make assistance available under this
  title only in connection with, and according to the provisions of a new town
  plan developed and established by a governing board under section 1107 and
  approved under subsection (d) of this section. In developing such plans,
  the governing board shall consult with representatives of the units of
  general local government within whose boundaries are located any portion
  of the new town demonstration area for the demonstration program to be
  carried out under such plan.
  (b) ELIGIBLE NEW TOWN DEMONSTRATION AREAS- A new town plan under this section
  shall provide for carrying out a new town development demonstration providing
  assistance available under this title within a new town demonstration area,
  which shall be a geographic area defined in the new town plan--
  (1) that is one of pervasive poverty, unemployment, and general distress;
  (2) that has an unemployment rate of not less than 1.5 times the national
  unemployment rate for the 2 years preceding approval of the new town plan;
  (3) that has a poverty rate of not less than 20 percent during such
  2-year period;
  (4) for which not less than 70 percent of the households living in the
  area have incomes below 80 percent of the median income of households of
  the unit of general local government in which they are located;
  (5) that has a shortage of adequate jobs for residents; and
  (6) that is located--
  (A) in or near the City or County of Los Angeles, in the State of
  California; and
  (B) within an area for which the President, pursuant to title IV or V
  of the Robert T. Stafford Disaster Relief and Emergency Assistance Act,
  declared that a major disaster or emergency existed for purposes of such
  Act, as a result of the civil disturbances involving acts of violence
  occurring on or after April 29, 1992, and before May 6, 1992.
  (c) CONTENTS- Each new town plan shall include the following information:
  (1) GOVERNING BOARD- A description of the members and purposes of the
  governing board that developed the plan, the manner in which members of
  the governing board were selected, and the businesses, agencies, interests,
  and community ties of each member of the governing board.
  (2) NEW TOWN DEMONSTRATION AREA- A definition and description of the new
  town demonstration area for the new town development demonstration to be
  assisted under this title.
  (3) TARGET COMMUNITY- A description of the economic, social, racial, and
  ethnic characteristics of the population of the neighborhood or area in
  which the new town demonstration area is located.
  (4) AGREEMENTS- Agreements that the governing board will carry out the new
  town demonstration program in accordance with the requirements of this title.
  (5) HOUSING UNITS- A description of the number, size, location, cost,
  style, and characteristics of rental and homeownership housing units to
  be developed under the new town demonstration program, any financing for
  developing such housing, and the amount of assistance necessary under
  section 1105 for developing the housing under the program.
  (6) JOBS- A description of the number, types, and duration of any new jobs
  that will be created in the new town demonstration area and surrounding
  areas as a result of the demonstration program, and of any job training
  activities and apprenticeship programs to be made available in connection
  with the program.
  (7) SOCIAL SERVICES- A description of the social and supportive services to
  be made available under the demonstration program to residents of housing
  assisted under the demonstration program pursuant to section 1103(d)
  and to residents of the new town demonstration area.
  (8) SUPPLEMENTAL RESOURCES- A description of any funds, assistance, in-kind
  contributions, and other resources to be made available in connection with
  the demonstration program, including the sources and amounts of any private
  capital resources and non-Federal funds required under section 1103(h).
  (9) CONTRACTORS AND DEVELOPERS- A listing of the contractors and developers
  who potentially will carry out any construction and rehabilitation work
  for development of housing under the demonstration program and the expected
  costs involved in hiring such contractors and developers.
  (10) FINANCING FOR HOMEBUYERS- A description of any mortgage lenders who
  have indicated that they will make financing available to families purchasing
  housing developed under the demonstration program through mortgages eligible
  for insurance under section 1104 and proposed terms of such mortgages.
  (11) COMMITMENTS- Evidence of any commitments entered into for making
  any of the resources described in paragraphs (6) through (8) available in
  connection with the demonstration program.
  (12) PRESALE REQUIREMENTS- A description of commitments made to purchase not
  less than 50 percent of the housing to be developed under the demonstration
  program for purchase by the occupant and to rent not less than 50 percent
  of the rental dwelling units to be developed under the demonstration program.
  (13) COMMUNITY DEVELOPMENT ACTIVITIES- A description of the community
  development activities to be carried out with assistance under section 1106,
  the amount of assistance necessary under such section for such activities,
  and of the projected uses of such assistance.
  (d) REVIEW AND APPROVAL-
  (1) SUBMISSION- Not later than the expiration of the 6-month period beginning
  on the date of the enactment of this Act, a governing board shall submit a
  new town plan under this section to the chief executive officers of each unit
  of general local government within whose boundaries is located any portion
  of the new town demonstration area described under the plan of the board.
  (2) APPROVAL- For a plan to be eligible for assistance available under this
  title, the chief executive officer of all units of general local government
  to whom the new town plan is submitted shall approve the plan at a public
  meeting after the plan has been made publicly available for a period of
  not less than 30 days. A governing board may resubmit for approval any
  plan returned by any such chief executive officer to the governing board,
  and such chief executive officer may, upon returning the plan indicate any
  modifications necessary for approval. A new town plan may not be approved
  unless such chief executive officers determine that the membership of
  the governing board submitting the plan is constituted in accordance with
  section 1107 and the governing board is capable of carrying out the plan.
  (3) AMENDMENT- An approved new town plan for the demonstration program
  developed by the governing board may be amended by the board by obtaining
  approval of the amendment in the manner provided under this subsection for
  approval of plans. If the chief executive officer of the unit of general
  local government does not approve or return the amended plan within 30
  days of submission, the amended plan shall be considered to be approved
  for purposes of this subsection.
SEC. 1103. NEW TOWN DEVELOPMENT DEMONSTRATION PROGRAM REQUIREMENTS.
  (a) IN GENERAL- Each of the 2 new town development demonstration programs
  selected for assistance under this title under section 1102 shall be
  carried out, by the governing board submitting the new town plan for the
  demonstration program, in accordance with such plan (and any approved
  amendments of such plans) and shall be subject to the requirements under
  this section.
  (b) LOCAL PARTICIPATION- With respect to any activities carried out
  under the demonstration program, the program shall give preference
  in awarding contracts, purchasing materials, acquiring services, and
  obtaining assistance or training, to contractors, businesses, developers,
  professionals, and other establishments located or having offices within
  the new town demonstration area.
  (c) HOUSING-
  (1) NUMBER OF UNITS- The demonstration program shall construct or  renovate
  not less than 1,500 dwelling units in the new town demonstration area,
  of which not less than 60 percent shall be units available for purchase
  by the occupant.
  (2) AFFORDABILITY- Units of varying sizes and costs shall be designed and
  developed under the demonstration program so that the program provides
  housing affordable to families of varying incomes not exceeding 115 percent
  of the median income for the area in which the new town demonstration area
  is located, including very low- and low-income families (as such terms
  are defined in section 3(b) of the United States Housing Act of 1937).
  (3) HOMEOWNERSHIP UNITS- Dwelling units developed under the demonstration
  program for purchase by the occupant shall initially be sold at prices
  affordable to families eligible to purchase such units. Such units shall
  be available for purchase only by families having incomes not exceeding
  the amount specified in paragraph (2). The demonstration shall develop 2-,
  3-, and 4-bedroom units for purchase.
  (4) RENTAL UNITS- Dwelling units developed under the demonstration program
  that are to be available for rental shall include family-type units and
  single bedroom and efficiency units designed for elderly occupants. Such
  units shall be available for occupancy only by families who (upon initial
  occupancy) have incomes of (A) less than 60 percent of the median income
  for the area, or (B) less than $20,000. Occupant families shall pay not
  more than 30 percent of the family income for rent.
  (d) SOCIAL SERVICES- The demonstration program shall provide for appropriate
  social and supportive services to be made available to residents of housing
  assisted under the demonstration program and to other residents of the
  new town demonstration area, which may include rental and homeownership
  counseling, child care, job placement, educational programs, recreational
  and health care facilities and programs, and other appropriate services.
  (e) JOB CREATION AND TRAINING- The demonstration program shall provide, to
  the extent practicable, that activities in connection with the demonstration
  program, including development of housing under subsection (c) and community
  development activities assisted under section 1106, shall employ and provide
  job training opportunities for residents of the housing assisted under the
  demonstration program and other residents of the new town demonstration area.
  (f) FINANCING- The demonstration program shall provide for coordination
  with banks, credit unions, and other mortgage lenders to make financing
  available to purchasers of units developed under the demonstration program
  through mortgages eligible for insurance under section 1104, and shall
  give preference to such mortgage lenders who have offices located within
  or near the new town demonstration area.
  (g) SUPPORT FACILITIES- The demonstration program shall encourage,
  facilitate, and provide for development of appropriate support facilities
  to serve residents in the housing developed under the program, including
  infrastructure and commercial facilities.
  (h) NON-FEDERAL FUNDS- The governing board carrying out the demonstration
  program shall ensure that not less than 25 percent of the total amounts
  used to carry out the demonstration program is provided from non-Federal
  sources, including State or local government funds, any salary paid to staff
  to carry out the demonstration program, the value of any time, services,
  and materials donated to carry out the program, the value of any donated
  building, and the value of any lease on a building.
SEC. 1104. FEDERAL MORTGAGE INSURANCE.
  (a) IN GENERAL- Pursuant to title II and section 251 of the National Housing
  Act, the Secretary shall (to the extent authority is available pursuant to
  subsection (d)) insure mortgages under this section involving properties
  upon which are located dwelling units described in section 1103(c)(3)
  of this Act that are developed under the new town demonstration programs
  carried out pursuant to this title.
  (b) MORTGAGE TERMS- Mortgages insured under this section shall--
  (1) provide for periodic adjustments in the effective rate of interest
  charged, which--
  (A) for the first 5 years of the mortgage, shall be an annual rate of not
  more than 7 percent; and
  (B) after the expiration of such 5-year period, may increase on an annual
  basis, but--
  (i) shall be limited, with respect to any single interest rate increase,
  to not more than a 10-percent increase in the annual percentage rate; and
  (ii) may not be increased at any time to a rate greater than the rate
  necessary at such time to fully amortize the outstanding loan balance over
  the term of the mortgage; and
  (2) have a maturity of 35 years from the date of the beginning of the
  amortization of the mortgage.
  (c) BOARD APPROVAL- The Secretary may provide insurance under this section
  for a mortgage only if the governing board for the demonstration program
  for the new town demonstration area in which the property subject to the
  mortgage is located has indicated to the Secretary approval of the mortgage
  in connection with the demonstration program.
  (d) INSURANCE AUTHORITY- To the extent provided in appropriation Acts,
  the Secretary shall use any authority provided pursuant to section 531(b)
  of the National Housing Act to enter into commitments to insure loans and
  mortgages under this section in fiscal years 1993 and 1994 with an aggregate
  principal amount not exceeding such sums as may be necessary to carry out
  the demonstration under this title. Mortgages insured under this section
  shall not be considered for purposes of the aggregate limitation on the
  number of mortgages insured under section 251 of the National Housing Act
  specified in subsection (c) of such section.
SEC. 1105. SECONDARY SOFT MORTGAGE FINANCING FOR HOUSING.
  (a) IN GENERAL- The Secretary shall, to the extent amounts are provided
  in appropriation Acts under subsection (e), provide assistance under this
  section through the governing boards carrying out the new town demonstration
  programs under this section to assist in the development of housing under
  the program.
  (b) USE- Any assistance provided under this section shall be used only for
  costs in planning, developing, constructing, and rehabilitating housing
  under the demonstration program available for rental or purchase by the
  occupant. The governing board shall determine, according to the new town
  plan for the demonstration program, the allocation of amounts of assistance
  provided under this section.
  (c) AMOUNT- The Secretary may not provide assistance under this section
  for the development of housing under a demonstration program in an amount
  exceeding $50,000 per dwelling unit assisted.
  (d) SECOND MORTGAGE-
  (1) IN GENERAL- Assistance under this section shall be repaid in accordance
  with this subsection. Repayment of the amount of any assistance provided
  with respect to--
  (A) any building containing rental units, or
  (B) any dwelling unit available for purchase by the occupant that is
  developed under a demonstration program,
shall be secured by a second mortgage held by the Secretary on the property
involved.
  (2) TERMS- During the period ending upon repayment of the assistance as
  provided in this subsection, any building containing rental units that is
  provided assistance under this section shall be used as rental housing
  subject to the requirements of section 1103(c)(4). During the period
  ending upon repayment of the assistance as provided in this subsection,
  any dwelling unit made available for purchase by the occupant that is
  provided assistance under this section may be sold only to a family having
  an income not exceeding the amount specified in section 1103(c)(2).
  (3) INTEREST- Any assistance provided under this section for a building or
  dwelling unit shall bear interest at a rate equivalent to the rate for the
  most recently marketable obligations issued by the United States Treasury
  have terms of 10 years. The interest on such assistance shall be required
  to be repaid only upon sale of the building.
  (4) DISCOUNTED REPAYMENT- The assistance provided under this section
  for any building containing rental units or any dwelling unit available
  for purchase by the occupant shall be considered to have been repaid for
  purposes of this subsection if the original purchaser of the building or
  the dwelling unit pays to the Secretary an amount equal to 50 percent of
  the amount of the assistance provided under this section.
  (e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  for fiscal years 1993 and 1994 such sums as may be necessary for providing
  assistance under this section.
SEC. 1106. COMMUNITY DEVELOPMENT ASSISTANCE.
  (a) IN GENERAL- The Secretary shall provide assistance under this section,
  to the extent amounts are provided in appropriation Acts under subsection
  (h), to units of general local government to address vital unmet needs
  and to promote the creation of jobs and economic development in connection
  with the new town demonstration programs carried out  under this title.
  (b) ELIGIBLE UNITS OF GENERAL LOCAL GOVERNMENT- Assistance may be provided
  under this section only to units of general local government--
  (1) within whose boundaries are located any portion of the new town
  demonstration areas described under the new town demonstration plans for
  the demonstration programs carried out under this title;
  (2) that make the certifications to the Secretary required under subsection
  (c); and
  (3) that will comply with a residential antidisplacement and relocation
  assistance plan described in subsection (d).
  (c) REQUIRED CERTIFICATIONS- The certifications referred to in subsection
  (b)(2) shall be certifications that--
  (1) the assistance will be conducted and administered in conformity with
  the Civil Rights Act of 1964 and the Civil Rights Act of 1968, and the
  unit of general local government will affirmatively further fair housing;
  (2) the projected use of funds has been developed in a manner that
  gives maximum feasible priority to activities which are designed to meet
  community development needs that have been delayed because of the lack
  of fiscal resources of the unit of general local government or which are
  designed to address conditions that pose a serious and immediate threat
  to the health or welfare of the community;
  (3) any projected use of funds for public services will benefit primarily
  low- and moderate-income families;
  (4) the unit of general local government will not attempt to recover any
  capital costs of public improvements assisted in whole or part under this
  section by assessing any amount against properties owned and occupied by
  persons of low- and moderate-income, including any fee charged or assessment
  made as a condition of obtaining access to such public improvements, unless--
  (A) funds received under this section are used to pay the proportion of
  such fee or assessment that relates to the capital costs of such public
  improvements that are financed from revenue sources other than under this
  section; or
  (B) for purposes of assessing any amount against properties owned and
  occupied by persons of moderate income, the grantee certifies to the
  Secretary that it lacks sufficient funds received under this section to
  comply with the requirements of subparagraph (A); and
  (5) the unit of general local government will comply with the other
  provisions of this title and with other applicable laws.
  (d) ANTIDISPLACEMENT AND RELOCATION PLAN-
  (1) CONTENTS- The residential antidisplacement and relocation assistance
  plan referred to in subsection (b)(3) shall, in connection with activities
  assisted under this section--
  (A) provide that, in the event of such displacement--
  (i) governmental agencies or private developers shall provide, within the
  same community, comparable replacement dwellings for the same number of
  occupants as could have been housed in the occupied and vacant occupiable
  low- and moderate-income dwelling units demolished or converted to a use
  other than for housing for low- and moderate-income persons, and provide
  that such replacement housing may include existing housing assisted with
  project based assistance provided under section 8 of the United States
  Housing Act of 1937;
  (ii) such comparable replacement dwellings shall be designed to remain
  affordable to persons of low- and moderate-income for 10 years from the
  time of initial occupancy;
  (iii) relocation benefits shall be provided for all low- or moderate-income
  persons who occupied housing demolished or converted to a use other than
  for low- or moderate-income housing, including reimbursement for actual and
  reasonable moving expenses, security deposits, credit checks, and other
  moving-related expenses, including any interim living costs; and in the
  case of displaced persons of low- and moderate-income, provide either--
  (I) compensation sufficient to ensure that, for a 5-year period, the
  displaced families shall not bear, after relocation, a ratio of shelter
  costs to income that exceeds 30 percent; or
  (II) if elected by a family, a lump-sum payment equal to the capitalized
  value of the benefits available under subclause (I) to permit the
  household to secure participation in a housing cooperative or mutual
  housing association; and
  (iv) persons displaced shall be relocated into comparable replacement
  housing that is--
  (I) decent, safe, and sanitary;
  (II) adequate in size to accommodate the occupants;
  (III) functionally equivalent; and
  (IV) in an area not subject to unreasonably adverse environmental
  conditions; and
  (B) provide that persons displaced shall have the right to elect, as an
  alternative to the benefits under this subsection, to receive benefits
  under the Uniform Relocation Assistance and Real Property Acquisition
  Policies Act of 1970 if such persons determine that it is in their best
  interest to do so; and
  (C) provide that where a claim for assistance under subparagraph (A)(iv)
  is denied by the unit of general local government, the claimant may appeal
  to the Secretary, and that the decision of the Secretary shall be final
  unless a court determines the decision was arbitrary and capricious.
  (2) EXCEPTION- Paragraphs (1)(A)(i) and (1)(A)(ii) shall not apply in any
  case in which the Secretary finds, on the basis of objective data, that
  there is available in the area an adequate supply of habitable affordable
  housing for low- and moderate-income persons. A determination under this
  paragraph shall be final and nonreviewable.
  (e) ELIGIBLE ACTIVITIES- Activities assisted with amounts provided under
  this section may include only the following activities:
  (1) ACQUISITION OF REAL PROPERTY- The acquisition of real property
  (including air rights, water rights, and other interests therein) that is
  located within the new town demonstration area and is--
  (A) blighted, deteriorated, undeveloped, or inappropriately developed from
  the standpoint of sound community development and growth;
  (B) appropriate for rehabilitation activities;
  (C) appropriate for the preservation or restoration of historic sites,
  the beautification of urban land, the conservation of open spaces, natural
  resources, and scenic areas, the provision of recreational opportunities,
  or the guidance of urban development;
  (D) to be used for the provision of public works, facilities, and
  improvements eligible for assistance under this section;
  (E) to be used as a facility for coordinating and providing activities and
  services for high risk youth (as such term is defined in section 509A of
  the Public Health Service Act); or
  (F) to be used for other public purposes.
  (2) CONSTRUCTION OF PUBLIC WORKS AND FACILITIES- The acquisition,
  construction, rehabilitation, or installation of public works or public
  facilities within the new town demonstration area, including buildings
  for the general conduct of government and facilities for coordinating and
  providing activities and services for high risk youth (as such term is
  defined in section 509A of the Public Health Service Act).
  (3) CLEARANCE AND REHABILITATION OF BUILDINGS- The clearance, removal, and
  rehabilitation of buildings and improvements located within the new town
  demonstration area, including interim assistance, assistance for facilities
  for coordinating and providing activities and services for high risk youth
  (as such term is defined in section 509A of the Public Health Service Act),
  and assistance to privately owned buildings and improvements.
  (4) PROVISION OF PUBLIC SERVICES AND HOUSING-
  (A) PUBLIC SERVICES- The provision of public services within the new town
  demonstration area that are concerned with job training and retraining,
  health care and education, crime prevention, drug abuse treatment and
  rehabilitation, child care, education, and recreation, which may include
  the provision of public health and public safety vehicles.
  (B) HOUSING ACTIVITIES- The acquisition and rehabilitation of housing for
  low- and moderate-income families within the new town demonstration area,
  except that any grantee that uses amounts received under this section
  for housing activities under this subparagraph shall make not less than
  15 percent of the amount used for such housing activities available only
  for community housing development organizations and nonprofit organizations
  (as such terms are defined in section 104 of the Cranston-Gonzalez National
  Affordable Housing Act) for such activities;
  (C) LIMITATION- Not more than 25 percent of the amount of any assistance
  provided under this section (including program income) to any unit of
  general local government may be used for activities under this paragraph.
  (5) RELOCATION ASSISTANCE- Relocation payments and assistance for
  individuals, families, business, and organizations that are displaced as
  a result of activities assisted under this title.
  (6) PAYMENT OF ADMINISTRATIVE EXPENSES- Payment of reasonable administrative
  costs associated with activities assisted under this section and any
  expenses of developing the new town plan under section 1102.
  (f) ALLOCATION OF ASSISTANCE- The Secretary may not provide more than 50
  percent of any amounts appropriated under this section in connection with any
  one of the 2 new town demonstration programs carried out under this title.
  (g) OTHER REQUIREMENTS- The provisions of subsections (f), (g), and (h)
  of section 104, subsections (c) and (d) of section 105, section 107, 108,
  109, and 110 of the bill, H.R. 4073, 102d Congress (as reported on March
  14, 1992, by the Committee on Banking, Finance and Urban Affairs of the
  House of Representatives), shall apply to grantees receiving assistance
  under this section.
  (h) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  for fiscal years 1993 and 1994 such sums as may be necessary for assistance
  under this section.
SEC. 1107. GOVERNING BOARDS.
  (a) PURPOSE- For purposes of this title, a governing board shall be a
  board organized for the purpose of developing a new town plan under this
  title and carrying out a new town development demonstration under this title.
  (b) MEMBERSHIP- Each governing board shall consist of not less than 10
  members, who shall include--
  (1) residents of the area in which the new town demonstration area under
  the plan developed by the board is located;
  (2) owners of business in such area;
  (3) leaders or participants in community groups in such area; and
  (4) representatives of financial institutions located or having offices
  in such area.
  (c) ORGANIZATION- A governing board may organize itself and conduct business
  in the manner that the board determines is appropriate to carry out the
  new town development demonstration under this title.
SEC. 1108. REPORTS.
  Each governing board carrying out a new town development demonstration
  under this title shall submit to the Congress the following information:
  (1) NEW TOWN PLAN- Upon approval of the new town plan of the governing
  board under section 1102(d), a copy of the approved plan.
  (2) ANNUAL REPORTS- For the 5-year period beginning upon the approval of the
  new town plan, annual reports for each 12-month period during such 5-year
  period, which shall be submitted within 3 months after the expiration
  of the 12-month period. Each report shall include a description of any
  activities during such period to carry out the demonstration program of
  the governing board, the use during such period of any assistance provided
  under this title, and any amendments under section 1102(d)(4) to the new
  town plan approved during such period.
SEC. 1109. DEFINITIONS.
  For purposes of this title:
  (1) DEMONSTRATION PROGRAM- The terms `demonstration program' and `program'
  mean a new town development demonstration program receiving assistance
  under this title, which is carried out within a new town demonstration
  area by a governing board.
  (2) GOVERNING BOARD- The term `governing board' means a board established
  under section 1107.
  (3) NEW TOWN DEMONSTRATION AREA- The term `new town demonstration area'
  means the area defined in a new town plan in which the new town development
  demonstration under the plan is to be carried out.
  (4) NEW TOWN PLAN- The terms `new town plan' and `plan' mean a plan under
  section 1102 developed by a governing board.
  (5) UNIT OF GENERAL LOCAL GOVERNMENT- The term `unit of general local
  government' means any city, county, town, township, parish, village,
  or other general purpose political subdivision of the State of California.
TITLE XII--REMOVAL OF REGULATORY BARRIERS TO AFFORDABLE HOUSING
SEC. 1201. SHORT TITLE.
  This title may be cited as the `Removal of Regulatory Barriers to Affordable
  Housing Act of 1992'.
SEC. 1202. PURPOSES.
  The purposes of this title are--
  (1) to encourage State and local governments to further identify and remove
  regulatory barriers to affordable housing (including barriers that are
  excessive, unnecessary, duplicative, or exclusionary) that significantly
  increase housing costs and limit the supply of affordable housing; and
  (2) to strengthen the connection between Federal housing assistance and
  State and local efforts to identify and eliminate regulatory barriers.
SEC. 1203. DEFINITION OF REGULATORY BARRIERS TO AFFORDABLE HOUSING.
  For purposes of this title, the terms `regulatory barriers to affordable
  housing' and `regulatory barriers' mean any public policies (including
  policies embodied in statutes, ordinances, regulations, or administrative
  procedures or processes) required to be identified by a jurisdiction in
  connection with its comprehensive housing affordability strategy under
  section 105(b)(4) of the Cranston-Gonzalez National Affordable Housing
  Act. Such terms do not include policies relating to rents imposed on
  a structure by a jurisdiction or policies that have served to create or
  preserve, or can be shown to create or preserve, housing for low- and very
  low-income families, including displacement protections, demolition controls,
  replacement housing requirements, relocation benefits, housing trust funds,
  dedicated funding sources, waiver of local property taxes and builder fees,
  inclusionary zoning, rental zoning overlays, long-term use restrictions,
  and rights of first refusal.
SEC. 1204. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES AND IMPLEMENTATION.
  (a) IN GENERAL- The amounts set aside under section 107 of the Housing
  and Community Development Act of 1974 for the purpose of this subsection
  shall be available for grants under subsection (b) and (c).
  (b) STATE GRANTS- The Secretary may make grants to States for the costs
  of developing and implementing strategies to remove regulatory barriers
  to affordable housing, including the costs of--
  (1) identifying, assessing, and monitoring State and local regulatory
  barriers;
  (2) identifying State and local policies (including laws and regulations)
  that permit or encourage regulatory barriers;
  (3) developing legislation to provide a State program to reduce State
  and local regulatory barriers and developing a strategy for adoption of
  such legislation;
  (4) developing model State standards and ordinances to reduce regulatory
  barriers and assisting in the adoption and use of the standards and
  ordinances;
  (5) carrying out the simplification and consolidation of State administrative
  procedures and processes constituting regulatory barriers to affordable
  housing, including the issuance of permits; and
  (6) providing technical assistance and information to units of general
  local government for implementation of legislative and administrative
  reform programs to remove regulatory barriers to affordable housing.
  (c) LOCAL GRANTS- The Secretary may make grants to units of general local
  government for the costs of developing and implementing strategies to
  remove regulatory barriers to affordable housing, including the costs of--
  (1) identifying, assessing, and monitoring local regulatory barriers;
  (2) identifying local policies (including laws and regulations) that permit
  or encourage regulatory barriers;
  (3) developing legislation to provide a local program to reduce local
  regulatory barriers and developing a strategy for adoption of such
  legislation;
  (4) developing model local standards and ordinances to reduce regulatory
  barriers and assisting in the adoption and use of the standards and
  ordinances; and
  (5) carrying out the simplification and consolidation of local administrative
  procedures and processes constituting regulatory barriers to affordable
  housing, including the issuance of permits.
  (d) DEFINITION- For purposes of this section, the terms `regulatory barriers
  to affordable housing' and `regulatory barriers' have the meaning given
  such terms in section 1203.
  (e) APPLICATION AND SELECTION- The Secretary shall provide for the form
  and manner of applications for grants under this section, which shall
  describe how grant amounts will assist the State or unit of general local
  government in developing and implementing strategies to remove regulatory
  barriers to affordable housing. The Secretary shall establish criteria for
  approval of applications under this subsection and for the selection of
  units of general local government to receive grants under subsection (f)(2).
  (f) ALLOCATION OF AMOUNTS-
  (1) STATE GRANTS-
  (A) IN GENERAL- Of the total amount appropriated for each fiscal year to
  carry out this subsection, the Secretary shall use two-thirds of such
  amount to provide grants under subsection (b) to each State submitting
  an application that is approved by the Secretary. Such amounts shall be
  allocated among the States based upon the measure of need (for the whole
  State) of each State, as determined under section 217(b)(1)(A) (excluding
  adjustments under section 217(b)(1)(D)) of the Cranston-Gonzalez National
  Affordable Housing Act, except that the minimum grant amount for each
  fiscal year grant shall be $100,000 (to the extent sufficient amounts are
  made available).
  (B) PRO RATA DISTRIBUTION- If insufficient amounts are made available for
  grants in the amount under subparagraph (A) to each State submitting an
  approved application, each such State shall receive a pro rata portion
  of such amount based on the ratio of the population of such State to the
  population of all States.
  (2) LOCAL GRANTS- Of the total amount appropriated for each fiscal year
  to carry out this section, the Secretary shall use one-third of such
  amount to provide grants on a competitive basis to units of general local
  government based on the proposed uses of such amounts, as provided in the
  application. Each grant made with such amounts shall be in an amount not
  less than $10,000.
  (g) COORDINATION WITH CLEARINGHOUSE- Each State and unit of general
  local government receiving a grant under this section, shall consult,
  coordinate, and exchange information with the clearinghouse established
  under section 1205.
  (h) REPORTS TO SECRETARY- Each State and unit of general local government
  receiving a grant under this section shall submit a report to the Secretary,
  not less than 12 months after receiving the grant, describing any activities
  carried out with the grant amounts. The report shall contain an assessment
  of the impact of any regulatory barriers identified by the grantee on the
  housing patterns of minorities.
  (i) CONFORMING AMENDMENTS- The first sentence of section 106(d)(1) of
  the Housing and Community Development Act of 1974 (42 U.S.C. 5306(d)(1))
  is amended by striking `for grants' and all that follows through `(2))'
  and inserting `that remains after allocations pursuant to paragraphs (1)
  and (2) of subsection (a)'.
SEC. 1205. REGULATORY BARRIERS CLEARINGHOUSE.
  (a) ESTABLISHMENT- The Secretary of Housing and Urban Development shall
  establish a clearinghouse to receive, collect, process, and assemble
  information regarding--
  (1) State and local laws, regulations, and policies affecting the
  development, maintenance, improvement, availability, or cost of affordable
  housing, including tax policies affecting land and other property, land use
  controls, zoning ordinances, building codes, fees and charges, growth limits,
  and policies that affect the return on investment in residential property;
  (2) State and local activities, strategies, and plans to remove or ameliorate
  the negative effects, if any, of such laws, regulations, and policies; and
  (3) State and local strategies, activities and plans that promote affordable
  housing and housing desegregation.
  (b) FUNCTIONS- The clearinghouse established under subsection (a) shall--
  (1) respond to inquiries from State and local governments, other
  organizations, and individuals requesting information regarding State
  and local laws, regulations, policies, activities, strategies, and plans
  described in subsection (a); and
  (2) provide assistance in identifying, examining, and understanding such
  laws, regulations, policies, activities, strategies, and plans.
SEC. 1206. SUBSTANTIALLY EQUIVALENT FEDERAL AND STATE BARRIER ASSESSMENT
REMOVAL REQUIREMENTS.
  Section 105(b)(4) of the Cranston-Gonzalez National Affordable Housing
  Act (42 U.S.C. 12705(b)(4)) is amended by inserting before the semicolon
  at the end the following: `, except that, if a State requires a unit of
  general local government to submit a regulatory barrier assessment that is
  substantially equivalent to the information required under this paragraph,
  as determined by the Secretary, the unit of general local government may
  submit its assessment submitted to the State to the Secretary and shall
  be considered to have complied with this paragraph'.
SEC. 1207. REPORTS BY SECRETARY.
  Not later than 2 years after the date of enactment of this Act, the
  Secretary of Housing and Urban Development shall submit a report to the
  Congress. The report shall--
  (1) describe any successful State and local strategies for the removal of
  barriers to affordable housing;
  (2) assess the impact of identified regulatory barriers on the housing
  patterns of minorities; and
  (3) describe any strategies developed or implemented by the Department of
  Housing and Urban Development for reducing barriers to affordable housing
  imposed by the Federal Government.
TITLE XIII--GOVERNMENT SPONSORED ENTERPRISES
SEC. 1301. SHORT TITLE.
  This title may be cited as the `Federal Housing Enterprises Financial
  Safety and Soundness Act of 1992'.
SEC. 1302. CONGRESSIONAL FINDINGS.
  The Congress finds that--
  (1) the Federal National Mortgage Association and the Federal Home Loan
  Mortgage Corporation (referred to in this section collectively as the
  `enterprises'), and the Federal Home Loan Banks (referred to in this section
  as the `Banks'), have important public missions that are reflected in the
  statutes and charter Acts establishing the Banks and the enterprises;
  (2) because the continued ability of the Federal National Mortgage
  Association and the Federal Home Loan Mortgage Corporation to accomplish
  their public missions is important to providing housing in the United
  States and the health of the Nation's economy, more effective Federal
  regulation is needed to reduce the risk of failure of the enterprises;
  (3) considering the current operating procedures of the Federal National
  Mortgage Association, the Federal Home Loan Mortgage Corporation, and the
  Federal Home Loan Banks, the enterprises and the Banks currently pose low
  financial risk of insolvency;
  (4) neither the enterprises nor the Banks, nor any securities or obligations
  issued by the enterprises or the Banks, are backed by the full faith and
  credit of the United States;
  (5) an entity regulating the Federal National Mortgage Association and
  the Federal Home Loan Mortgage Corporation should have sufficient autonomy
  from the enterprises and special interest groups;
  (6) an entity regulating such enterprises should have the authority to
  establish capital standards, require financial disclosure, prescribe
  adequate standards for books and records and other internal controls,
  conduct examinations when necessary, and enforce compliance with the
  standards and rules that it establishes;
  (7) the Federal National Mortgage Association and the Federal Home Loan
  Mortgage Corporation have an affirmative obligation to facilitate the
  financing of affordable housing for low- and moderate-income families in
  a manner consistent with their overall public purposes, while maintaining
  a strong financial condition and a reasonable economic return; and
  (8) the Federal Home Loan Bank Act should be amended to emphasize that
  providing for financial safety and soundness of the Federal Home Loan
  Banks is the primary mission of the Federal Housing Finance Board.
SEC. 1303. DEFINITIONS.
  For purposes of this title:
  (1) AFFILIATE- Except as provided by the Director, the term `affiliate'
  means any entity that controls, is controlled by, or is under common
  control with, an enterprise.
  (2) CAPITAL DISTRIBUTION-
  (A) IN GENERAL- The term `capital distribution' means--
  (i) any dividend or other distribution in cash or in kind made with respect
  to any shares of, or other ownership interest in, an enterprise, except
  a dividend consisting only of shares of the enterprise;
  (ii) any payment made by an enterprise to repurchase, redeem, retire,
  or otherwise acquire any of its shares, including any extension of credit
  made to finance an acquisition by the enterprise of such shares; and
  (iii) any transaction that the Director determines by regulation to be,
  in substance, the distribution of capital.
  (B) EXCEPTION- Any payment made by an enterprise to repurchase its shares
  for the purpose of fulfilling an obligation of the enterprise under an
  employee stock ownership plan that is qualified under section 401 of the
  Internal Revenue Code of 1986 or any substantially equivalent plan, as
  determined by the Director, shall not be considered a capital distribution.
  (3) COMPENSATION- The term `compensation' means any payment of money or the
  provision of any other thing of current or potential value in connection
  with employment.
  (4) CORE CAPITAL- The term `core capital' means, with respect to an
  enterprise, the sum of the following (as determined in accordance with
  generally accepted accounting principles):
  (A) The par or stated value of outstanding common stock.
  (B) The par or stated value of outstanding perpetual, noncumulative
  preferred stock.
  (C) Paid-in capital.
  (D) Retained earnings.
The core capital of an enterprise shall not include any amounts that the
enterprise could be required to pay, at the option of investors, to retire
capital instruments.
  (5) DIRECTOR- The term `Director' means the Director of the Office of
  Federal Housing Enterprise Oversight of the Department of Housing and
  Urban Development.
  (6) ENTERPRISE- The term `enterprise' means--
  (A) the Federal National Mortgage Association and any affiliate thereof; and
  (B) the Federal Home Loan Mortgage Corporation and any affiliate thereof.
  (7) EXECUTIVE OFFICER- The term `executive officer' means, with respect
  to an enterprise, the chairman of the board of directors, chief executive
  officer, chief financial officer, president, vice chairman, any executive
  vice president, and any senior vice president in charge of a principal
  business unit, division, or function.
  (8) LOW-INCOME- The term `low-income' means--
  (A) in the case of owner-occupied units, income not in excess of 80 percent
  of area median income; and
  (B) in the case of rental units, income not in excess of 80 percent of
  area median income, with adjustments for smaller and larger families,
  as determined by the Secretary.
  (9) MEDIAN INCOME- The term `median income' means, with respect to an
  area, the unadjusted median family income for the area, as determined and
  published annually by the Secretary.
  (10) MODERATE-INCOME- The term `moderate-income' means--
  (A) in the case of owner-occupied units, income not in excess of area
  median income; and
  (B) in the case of rental units, income not in excess of area median
  income, with adjustments for smaller and larger families, as determined
  by the Secretary.
  (11) MORTGAGE PURCHASES- The term `mortgage purchases' includes mortgages
  purchased for portfolio or securitization.
  (12) MULTIFAMILY HOUSING- The term `multifamily housing' means a residence
  consisting of more than 4 dwelling units.
  (13) NEW PROGRAM- The term `new program' means any program for the
  purchasing, servicing, selling, lending on the security of, or otherwise
  dealing in, conventional mortgages that--
  (A) is significantly different from programs that have been approved under
  this Act or that were approved or engaged in by an enterprise before the
  date of the enactment of this Act; or
  (B) represents an expansion, in terms of the dollar volume or number
  of mortgages or securities involved, of programs above limits expressly
  contained in any prior approval.
  (14) OFFICE- The term `Office' means the Office of Federal Housing Enterprise
  Oversight of the Department of Housing and Urban Development.
  (15) SECRETARY- The term `Secretary' means the Secretary of Housing and
  Urban Development.
  (16) SINGLE FAMILY HOUSING- The term `single family housing' means a
  residence consisting of 1 to 4 dwelling units.
  (17) STATE- The term `State' means the States of the United States, the
  District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
  the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa,
  the Trust Territory of the Pacific Islands, and any other territory or
  possession of the United States.
  (18) TOTAL CAPITAL- The term `total capital' means, with respect to an
  enterprise, the sum of the following:
  (A) The core capital of the enterprise;
  (B) A general allowance for foreclosure losses, which--
  (i) shall include an allowance for portfolio mortgage losses, an allowance
  for nonreimbursable foreclosure costs on government claims, and an allowance
  for liabilities reflected on the balance sheet for the enterprise for
  estimated foreclosure losses on mortgage-backed securities; and
  (ii) shall not include any reserves of the enterprise made or held against
  specific assets.
  (C) Any other amounts from sources of funds available to absorb losses
  incurred by the enterprise, that the Director by regulation determines
  are appropriate to include in determining total capital.
  (19) VERY LOW-INCOME- The term `very low-income' means--
  (A) in the case of owner-occupied units, income not in excess of 60 percent
  of area median income; and
  (B) in the case of rental units, income not in excess of 60 percent of
  area median income, with adjustments for smaller and larger families,
  as determined by the Secretary.
SEC. 1304. PROTECTION OF TAXPAYERS AGAINST LIABILITY.
  This title and the amendments made by this title may not be construed
  as obligating the Federal Government, either directly or indirectly, to
  provide any funds to the Federal Home Loan Mortgage Corporation, the Federal
  National Mortgage Association, or the Federal Home Loan Banks, or to honor,
  reimburse, or otherwise guarantee any obligation or liability of the Federal
  Home Loan Mortgage Corporation, the Federal National Mortgage Association,
  or the Federal Home Loan Banks. This title and the amendments made by this
  title may not be construed as implying that any such enterprise or Bank,
  or any obligations or securities of such an enterprise or Bank, are backed
  by the full faith and credit of the United States.
Subtitle A--Supervision and Regulation of Enterprises
PART 1--FINANCIAL SAFETY AND SOUNDNESS REGULATOR
SEC. 1311. ESTABLISHMENT OF OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT.
  There is hereby established an office within the Department of Housing and
  Urban Development, which shall be known as the Office of Federal Housing
  Enterprise Oversight.
SEC. 1312. DIRECTOR.
  (a) APPOINTMENT- The Office shall be under the management of a Director, who
  shall be appointed by the President, by and with the advice and consent of
  the Senate, from among individuals who are citizens of the United States,
  have a demonstrated understanding of financial management or oversight,
  and have a demonstrated understanding of mortgage security markets and
  housing finance. An individual may not be appointed as Director if the
  individual has served as an executive officer or director of an enterprise
  at any time during the 3-year period ending upon the nomination of such
  individual for appointment as Director.
  (b) TERM- The Director shall be appointed for a term of 5 years.
  (c) VACANCY- A vacancy in the position of Director shall be filled in the
  manner in which the original appointment was made under subsection (a).
  (d) SERVICE AFTER END OF TERM- A Director may serve after the expiration
  of the term for which the Director was appointed until a successor Director
  has been appointed.
  (e) DEPUTY DIRECTOR-
  (1) IN GENERAL- The Office shall have a Deputy Director who shall be
  appointed by the Director from among individuals who are citizens of the
  United States, have a demonstrated understanding of financial management
  or oversight, and have a demonstrated understanding of mortgage security
  markets and housing finance. An individual may not be appointed as Deputy
  Director if the individual has served as an executive officer or director
  of an enterprise at any time during the 3-year period ending upon the
  appointment of such individual as Deputy Director.
  (2) FUNCTIONS- The Deputy Director shall have such functions, powers,
  and duties as the Director shall prescribe. In the event of the death,
  resignation, sickness, or absence of the Director, the Deputy Director
  shall serve as acting Director until the return of the Director or the
  appointment of a successor pursuant to subsection (c).
SEC. 1313. DUTY AND AUTHORITY OF DIRECTOR.
  (a) DUTY- The duty of the Director shall be to ensure that the enterprises
  are adequately capitalized and operating safely, in accordance with
  this title.
  (b) AUTHORITY EXCLUSIVE OF SECRETARY- The Director is authorized, without
  the review or approval of the Secretary, to make such determinations,
  take such actions, and perform such functions as the Director determines
  necessary regarding--
  (1) the issuance of regulations to carry out this part, subtitle B, and
  subtitle C (including the establishment of capital standards pursuant to
  subtitle B);
  (2) examinations of the enterprises under section 1317;
  (3) determining the capital levels of the enterprises and classification of
  the enterprises within capital classifications established under subtitle B;
  (4) decisions to appoint conservators for the enterprises;
  (5) administrative and enforcement actions under subtitle B, actions
  taken under subtitle C with respect to enforcement of subtitle B, and
  other matters relating to safety and soundness;
  (6) approval of payments of capital distributions by the enterprises under
  section 303(c)(2) of the Federal National Mortgage Association Charter
  Act and section 303(b)(2) of the Federal Home Loan Mortgage Corporation Act;
  (7) requiring the enterprises to submit reports under section 1314 of this
  title, section 309(k) of the Federal National Mortgage Association Charter
  Act, and section 307(c) of the Federal Home Loan Mortgage Corporation Act;
  (8) prohibiting the payment of excessive compensation by the enterprises
  to any executive officer of the enterprises under section 1318;
  (9) the management of the Office, including the establishment and
  implementation of annual budgets, the hiring of, and compensation levels for,
  personnel of the Office, and annual assessments for the costs of the Office;
  (10) conducting research and financial analysis; and
  (11) the submission of reports required by the Director under this title.
  (c) AUTHORITY SUBJECT TO APPROVAL OF SECRETARY- Any determinations,
  actions, and functions of the Director not referred to in subsection (b)
  shall be subject to the review and approval of the Secretary.
  (d) DELEGATION OF AUTHORITY- The Director may delegate to officers and
  employees of the Office any of the functions, powers, and duties of the
  Director, as the Director considers appropriate.
  (e) INDEPENDENCE IN PROVIDING INFORMATION TO CONGRESS- The Director shall
  not be required to obtain the prior approval, comment, or review of any
  officer or agency of the United States before submitting to the Congress,
  or any committee or subcommittee thereof, any reports, recommendations,
  testimony, or comments if such submissions include a statement indicating
  that the views expressed therein are those of the Director and do not
  necessarily represent the views of the Secretary or the President.
SEC. 1314. AUTHORITY TO REQUIRE REPORTS BY ENTERPRISES.
  (a) SPECIAL REPORTS AND REPORTS OF FINANCIAL CONDITION-
  (1) FINANCIAL CONDITION- The Director may require an enterprise to submit
  reports of financial condition and operations (in addition to the annual
  and quarterly reports required under section 309(k) of the Federal National
  Mortgage Association Charter Act and section 307(c) of the Federal Home
  Loan Mortgage Corporation Act).
  (2) SPECIAL REPORTS- The Director may also require an enterprise to submit
  special reports whenever, in the judgment of the Director, such reports
  are necessary to carry out the purposes of this title.
  (3) LIMITATION- The Director may not require the inclusion, in any report
  pursuant to paragraph (1) or (2), of any information that is not reasonably
  obtainable by the enterprise.
  (4) NOTICE AND DECLARATION- The Director shall notify the enterprise,
  a reasonable period in advance of the date for submission of any report
  under this subsection, of any specific information to be contained in the
  report and the date for the submission of the report. Each report under this
  subsection shall contain a declaration by the president, vice president,
  treasurer, or any other officer designated by the board of directors of the
  enterprise to make such declaration, that the report is true and correct
  to the best of such officer's knowledge and belief.
  (b) CAPITAL DISTRIBUTIONS- The Director may require an enterprise to submit
  a report to the Director after the declaration of any capital distribution
  by the enterprise and before making the capital distribution. The report
  shall be made in such form and under such circumstances and shall contain
  such information as the Director shall require.
SEC. 1315. PERSONNEL.
  (a) OFFICE PERSONNEL- The Director may appoint and fix the compensation of
  such officers and employees of the Office as the Director considers necessary
  to carry out the functions of the Director and the Office. Officers and
  employees may be paid without regard to the provisions of chapter 51 and
  subchapter III of chapter 53 of title 5, United States Code, relating to
  classification and General Schedule pay rates.
  (b) COMPARABILITY OF COMPENSATION WITH FEDERAL BANKING AGENCIES- In fixing
  and directing compensation under subsection (a), the Director shall consult
  with, and maintain comparability with compensation of officers and employees
  of the Office of the Comptroller of the Currency, the Board of Governors
  of the Federal Reserve System, the Federal Deposit Insurance Corporation,
  and the Office of Thrift Supervision.
  (c) PERSONNEL OF OTHER FEDERAL AGENCIES- In carrying out the duties of the
  Office, the Director may use information, services, staff, and facilities
  of any executive agency, independent agency, or department on a reimbursable
  basis, with the consent of such agency or department.
  (d) REIMBURSEMENT OF HUD- The Director shall reimburse the Department
  of Housing and Urban Development for reasonable costs incurred by the
  Department that are directly related to the operations of the Office.
  (e) OUTSIDE EXPERTS AND CONSULTANTS- Notwithstanding any provision of law
  limiting pay or compensation, the Director may appoint and compensate such
  outside experts and consultants as the Director determines necessary to
  assist the work of the Office.
  (f) EQUAL OPPORTUNITY REPORT- Not later than the expiration of the 180-day
  period beginning upon the appointment of the Director under section 1312,
  the Director shall submit to the Committee on Banking, Finance and Urban
  Affairs of the House of Representatives and the Committee on Banking,
  Housing, and Urban Affairs of the Senate a report containing--
  (1) a complete description of the equal opportunity, affirmative action,
  and minority business enterprise utilization programs of the Office; and
  (2) such recommendations for administrative and legislative action as the
  Director determines appropriate to carry out such programs.
SEC. 1316. FUNDING.
  (a) ANNUAL ASSESSMENTS- The Director may, to the extent provided in
  appropriation Acts, establish and collect from the enterprises annual
  assessments in an amount not exceeding the amount sufficient to provide
  for reasonable costs and expenses of the Office, including the expenses
  of any examinations under section 1317. The initial annual assessment
  shall include any startup costs of the Office and any anticipated costs
  and expenses of the Office for the following fiscal year.
  (b) ALLOCATION OF ANNUAL ASSESSMENT TO ENTERPRISES-
  (1) AMOUNT OF PAYMENT- Each enterprise shall pay to the Director a proportion
  of the annual assessment made pursuant to subsection (a) that bears the
  same ratio to the total annual assessment that the total assets of each
  enterprise bears to the total assets of both enterprises.
  (2) TIMING OF PAYMENT- The annual assessment shall be payable semiannually
  on September 1 and March 1 of the year for which the assessment is made.
  (3) DEFINITION- For the purpose of this section, the term `total assets'
  means, with respect to an enterprise, the sum of--
  (A) on-balance-sheet assets of the enterprise, as determined in accordance
  with generally accepted accounting principles;
  (B) the unpaid principal balance of outstanding mortgage-backed securities
  issued or guaranteed by the enterprise that are not included in subparagraph
  (A); and
  (C) other off-balance-sheet obligations as determined by the Director.
  (c) DEFICIENCIES DUE TO INCREASED COSTS OF REGULATION- The semiannual
  payments made pursuant to subsection (b) by any enterprise that is not
  classified (for purposes of subtitle B) as adequately capitalized may be
  increased, as necessary, in the discretion of the Director to pay additional
  estimated costs of regulation of the enterprise.
  (d) SURPLUS- If any amount from any annual assessment collected from
  an enterprise remains unobligated at the end of the year for which the
  assessment was collected, such amount shall be credited to the assessment
  to be collected from the enterprise for the following year.
  (e) INITIAL SPECIAL ASSESSMENT- Not later than the expiration of the 30-day
  period beginning on the date of the enactment of this Act, the enterprises
  shall each pay into the Federal Housing Enterprises Oversight Fund
  established under subsection (f) an initial assessment of $1,500,000 to cover
  the startup costs of the Office, including space and modifications thereof,
  capital equipment, supplies, recruitment, and activities of the Office
  during the period preceding the first annual assessment under subsection
  (a). Any amounts collected from an enterprise under this subsection shall
  be credited against the first annual assessment collected pursuant to
  subsection (a), and are hereby appropriated, and shall be available and
  used, without fiscal year limitation, as provided in this section.
  (f) FUND- There is established in the Treasury of the United States a
  fund to be known as the Federal Housing Enterprises Oversight Fund. Any
  assessments collected pursuant to this section shall be deposited in the
  Fund. Amounts in the Fund shall be available, to the extent provided in
  appropriation Acts and subsection (e), for--
  (1) carrying out the responsibilities of the Director relating to the
  enterprises; and
  (2) necessary administrative and nonadministrative expenses of the Office
  to carry out the purposes of this title.
  (g) BUDGET AND FINANCIAL REPORTS-
  (1) FINANCIAL OPERATING PLANS AND FORECASTS- Before the beginning of each
  fiscal year, the Director shall submit a copy of the financial operating
  plans and forecasts for the Office to the Secretary and the Director of
  the Office of Management and Budget.
  (2) REPORTS OF OPERATIONS- As soon as practicable after the end of each
  fiscal year and each quarter thereof, the Director shall submit a copy of
  the report of the results of the operations of the Office during such period
  to the Secretary and the Director of the Office of Management and Budget.
  (3) INCLUSION IN PRESIDENT'S BUDGET- The annual plans, forecasts, and
  reports required under this subsection shall be included (A) in the Budget
  of the United States in the appropriate form, and (B) in the congressional
  justifications of the Department of Housing and Urban Development for each
  fiscal year in a form determined by the Secretary.
SEC. 1317. EXAMINATIONS.
  (a) ANNUAL EXAMINATION- The Director shall annually conduct an on-site
  examination under this section of each enterprise to determine the
  condition of the enterprise for the purpose of ensuring its financial
  safety and soundness.
  (b) OTHER EXAMINATIONS- In addition to annual examinations under subsection
  (a), the Director may conduct an examination under this section whenever
  the Director determines that an examination is necessary to determine the
  condition of an enterprise for the purpose of ensuring its financial safety
  and soundness.
  (c) EXAMINERS- The Director shall appoint examiners to conduct examinations
  under this section. The Director may contract with the Comptroller of the
  Currency, the Board of Governors of the Federal Reserve System, the Federal
  Deposit Insurance Corporation, or the Director of the Office of Thrift
  Supervision for the services of examiners. The Director shall reimburse
  such agencies for any costs of providing examiners from amounts available
  in the Federal Housing Enterprises Oversight Fund.
  (d) LAW APPLICABLE TO EXAMINERS- The Director and each examiner shall
  have the same authority and each examiner shall be subject to the same
  disclosures, prohibitions, obligations, and penalties as are applicable
  to examiners employed by the Federal Reserve banks.
  (e) TECHNICAL EXPERTS- The Director may obtain the services of any
  technical experts the Director considers appropriate to provide temporary
  technical assistance relating to examinations to the Director, officers,
  and employees of the Office. The Director shall describe, in the record
  of each examination, the nature and extent of any such temporary technical
  assistance.
  (f) OATHS, EVIDENCE, AND SUBPOENA POWERS- In connection with examinations
  under this section, the Director shall have the authority provided under
  section 1379B.
SEC. 1318. PROHIBITION OF EXCESSIVE COMPENSATION.
  (a) IN GENERAL- The Director shall prohibit the enterprises from providing
  compensation to any executive officer of the enterprise that is not
  reasonable and comparable with compensation for employment in other similar
  businesses (including other publicly held financial institutions or major
  financial services companies) involving similar duties and responsibilities.
  (b) PROHIBITION OF SETTING COMPENSATION- In carrying out subsection (a), the
  Director may not prescribe or set a specific level or range of compensation.
SEC. 1319. AUTHORITY TO PROVIDE FOR REVIEW OF ENTERPRISES BY RATING
ORGANIZATION.
  The Director may, on such terms and conditions as the Director deems
  appropriate, contract with any entity effectively recognized by the
  Division of Market Regulation of the Securities and Exchange Commission as
  a nationally recognized statistical rating organization for the purposes of
  the capital rules for broker-dealers, to conduct a review of the enterprises.
SEC. 1319A. EQUAL OPPORTUNITY IN SOLICITATION OF CONTRACTS.
  (a) IN GENERAL- Each enterprise shall establish a minority outreach program
  to ensure the inclusion (to the maximum extent possible) in contracts entered
  into by the enterprises of minorities and women and businesses owned by
  minorities and women, including financial institutions, investment banking
  firms, underwriters, accountants, brokers, and providers of legal services.
  (b) REPORT- Not later than the expiration of the 180-day period beginning
  on the date of the enactment of this Act, each enterprise shall submit
  to the Committee on Banking, Finance and Urban Affairs of the House of
  Representatives and the Committee on Banking, Housing, and Urban Affairs
  of the Senate a report describing the actions taken by the enterprise
  pursuant to subsection (a).
SEC. 1319B. ANNUAL REPORTS BY DIRECTOR.
  (a) GENERAL REPORT- The Director shall submit to the Committee on Banking,
  Finance and Urban Affairs of the House of Representatives and the Committee
  on Banking, Housing, and Urban Affairs of the Senate, not later than June
  15 of each year, a written report, which shall include--
  (1) a description of the actions taken, and being undertaken, by the
  Director to carry out this title;
  (2) a description of the financial safety and soundness of each enterprise,
  including the results and conclusions of the annual examinations of the
  enterprises conducted under section 1317(a); and
  (3) any recommendations for legislation to enhance the financial safety
  and soundness of the enterprises.
  (b) REPORT ON ENFORCEMENT ACTIONS- Not later than March 15 of each year,
  the Director shall submit to the Committee on Banking, Finance and Urban
  Affairs of the House of Representatives and the Committee on Banking,
  Housing, and Urban Affairs of the Senate a written report describing,
  for the preceding calendar year, the requests by the Director to the
  Attorney General for enforcement actions under subtitle C and describing
  the disposition of each request, which shall include statements of--
  (1) the total number of requests made by the Director;
  (2) the number of requests that resulted in the commencement of litigation
  by the Department of Justice;
  (3) the number of requests that did not result in the commencement of
  litigation by the Department of Justice;
  (4) with respect to requests that resulted in the commence-ment of
  litigation--
  (A) the number of days between the date of the request and the commencement
  of the litigation; and
  (B) the number of days between the date of the commencement and termination
  of the litigation; and
  (5) the number of litigation requests pending at the beginning of the
  calendar year, the number of requests made during the calendar year, the
  number of requests for which action was completed during the calendar year,
  and the number of requests pending at the end of the calendar year.
SEC. 1319C. PUBLIC DISCLOSURE OF FINAL ORDERS AND AGREEMENTS.
  (a) IN GENERAL- The Director shall make available to the public--
  (1) any written agreement or other written statement for which a violation
  may be redressed by the Director or any modification to or termination
  thereof, unless the Director, in the Director's discretion, determines that
  public disclosure would be contrary to the public interest or determines
  under subsection (c) that public disclosure would seriously threaten the
  financial health or security of the enterprise;
  (2) any order that is issued with respect to any administrative enforcement
  proceeding initiated by the Director under subtitle C and that has become
  final; and
  (3) any modification to or termination of any final order made public
  pursuant to this subsection.
  (b) HEARINGS- All hearings on the record with respect to any action of the
  Director or notice of charges issued by the Director shall be open to the
  public, unless the Director, in the Director's discretion, determines that
  holding an open hearing would be contrary to the public interest.
  (c) DELAY OF PUBLIC DISCLOSURE UNDER EXCEPTIONAL CIRCUMSTANCES- If the
  Director makes a determination in writing that the public disclosure of
  any final order pursuant to subsection (a) would seriously threaten the
  financial health or security of the enterprise, the Director may delay
  the public disclosure of such order for a reasonable time.
  (d) DOCUMENTS FILED UNDER SEAL IN PUBLIC ENFORCEMENT HEARINGS- The Director
  may file any document or part thereof under seal in any hearing under
  subtitle C if the Director determines in writing that disclosure thereof
  would be contrary to the public interest.
  (e) RETENTION OF DOCUMENTS- The Director shall keep and maintain a record,
  for not less than 6 years, of all documents described in subsection (a)
  and all enforcement agreements and other supervisory actions and supporting
  documents issued with respect to or in connection with any enforcement
  proceeding initiated by the Director under subtitle C.
  (f) DISCLOSURES TO CONGRESS- This section may not be construed to authorize
  the withholding of any information from, or to prohibit the disclosure of
  any information to, the Congress or any committee or subcommittee thereof.
SEC. 1319D. LIMITATION ON SUBSEQUENT EMPLOYMENT.
  Neither the Director nor any former officer or employee of the Office who,
  while employed by the Office, was compensated at a rate in excess of the
  lowest rate for a position classified higher than GS-15 of the General
  Schedule under section 5107 of title 5, United States Code, may accept
  compensation from an enterprise during the 2-year period beginning on the
  date of separation from employment by the Office.
SEC. 1319E. AUDITS BY GAO.
  The Comptroller General shall audit the operations of the Office in
  accordance with generally accepted Government auditing standards. All books,
  records, accounts, reports, files, and property belonging to, or used by, the
  Office shall be made available to the Comptroller General. Audits under this
  section shall be conducted annually for the first 2 fiscal years following
  the date of the enactment of this Act and as appropriate thereafter.
SEC. 1319F. INFORMATION, RECORDS, AND MEETINGS.
  For purposes of subchapter II of chapter 5 of title 5, United States Code--
  (1) the Office, and
  (2) the Department of Housing and Urban Development, with respect to
  activities under this title,
shall be considered agencies responsible for the regulation or supervision
of financial institutions.
SEC. 1319G. REGULATIONS AND ORDERS.
  (a) AUTHORITY- The Director shall issue any regulations and orders necessary
  to carry out the duties of the Director and to carry out this title before
  the expiration of the 18-month period beginning on the appointment of the
  Director under section 1312. Such regulations and orders shall be subject
  to the approval of the Secretary only to the extent provided in subsections
  (b) and (c) of section 1313.
  (b) NOTICE AND COMMENT- Any regulations issued by the Director under this
  section shall be issued after notice and opportunity for public comment
  pursuant to the provisions of section 553 of title 5, United States Code.
  (c) CONGRESSIONAL REVIEW- The Director may not publish any regulation for
  comment under subsection (b) unless, not less than 15 days before it is
  published for comment, the Director has submitted a copy of the regulation,
  in the form it is intended to be proposed, to the Committee on Banking,
  Finance and Urban Affairs of the House of Representatives and the Committee
  on Banking, Housing, and Urban Affairs of the Senate.
PART 2--AUTHORITY OF SECRETARY
Subpart A--General Authority
SEC. 1321. REGULATORY AUTHORITY.
  Except for the authority of the Director of the Office of Federal Housing
  Enterprise Oversight described in section 1313(b) and all other matters
  relating to the safety and soundness of the enterprises, the Secretary of
  Housing and Urban Development shall have general regulatory power over
  each enterprise and shall make such rules and regulations as shall be
  necessary and proper to ensure that this part and the purposes of the
  Federal National Mortgage Association Charter Act and the Federal Home
  Loan Mortgage Corporation Act are accomplished.
SEC. 1322. PRIOR APPROVAL AUTHORITY FOR NEW PROGRAMS.
  (a) AUTHORITY- The Secretary shall require each enterprise to obtain the
  approval of the Secretary for any new program of the enterprise before
  implementing the program.
  (b) STANDARD FOR APPROVAL-
  (1) PERMANENT STANDARD- Except as provided in paragraph (2), the Secretary
  shall approve any new program of an enterprise for purposes of subsection
  (a) unless--
  (A) for a new program of the Federal National Mortgage Association, the
  Secretary determines that the program is not authorized under paragraph
  (2), (3), (4), or (5) of section 302(b) of the Federal National Mortgage
  Association Charter Act, or under section 304 of such Act;
  (B) for a new program of the Federal Home Loan Mortgage Corporation, the
  Secretary determines that the program is not authorized under section 305(a)
  (1), (4), or (5) of the Federal Home Loan Mortgage Corporation Act; or
  (C) the Secretary determines that the new program is not in the public
  interest.
  (2) TRANSITION STANDARD- Before the date occurring 12 months after the date
  of the effectiveness of the regulations under section 1361(e) establishing
  the risk-based capital test, the Secretary shall approve any new program
  of an enterprise for purposes of subsection (a) unless--
  (A) The Secretary makes a determination as described in paragraph (1) (A),
  (B), or (C); or
  (B) the Director determines that the new program would risk significant
  deterioration of the financial condition of the enterprise.
  (c) PROCEDURE FOR APPROVAL-
  (1) SUBMISSION OF REQUEST- To obtain the approval of the Secretary for
  purposes of subsection (a), an enterprise shall submit to the Secretary
  a written request for approval of the new program that describes the program.
  (2) RESPONSE- The Secretary shall, not later than the expiration of the
  45-day period beginning upon the submission of a request for approval,
  approve the request or submit to the Committee on Banking, Finance and
  Urban Affairs of the House of Representatives and the Committee on Banking,
  Housing, and Urban Affairs of the Senate a report explaining the reasons
  for not approving the request. The Secretary may extend such period for a
  single additional 15-day period only if the Secretary requests additional
  information from the enterprise.
  (3) FAILURE TO RESPOND- If the Secretary fails to approve the request or
  fails to submit a report under paragraph (2) during the period under such
  paragraph, the request shall be considered to have been approved.
  (4) REVIEW OF DISAPPROVAL-
  (A) UNAUTHORIZED NEW PROGRAMS- If the Secretary submits a report under
  paragraph (2) of this subsection disapproving a request for approval
  on the grounds under subparagraph (A) or (B) of subsection (b)(1), the
  Secretary shall provide the enterprise submitting the request with a timely
  opportunity to review and supplement the administrative record.
  (B) NEW PROGRAMS NOT IN PUBLIC INTEREST- If the Secretary submits a report
  under paragraph (2) of this subsection disapproving a request for approval
  on the grounds under subsection (b)(1)(C) or (b)(2)(B), the Secretary shall
  provide the enterprise submitting the request notice of, and opportunity
  for, a hearing on the record regarding such disapproval.
SEC. 1323. PUBLIC ACCESS TO MORTGAGE INFORMATION.
  (a) IN GENERAL- The Secretary shall make available to the public, in forms
  useful to the public (including forms accessible by computers), the data
  submitted by the enterprises in the reports required under section 309(m)
  of the Federal National Mortgage Association Charter Act or section 307(e)
  of the Federal Home Loan Mortgage Corporation Act.
  (b) ACCESS-
  (1) PROPRIETARY DATA- Except as provided in paragraph (2), the Secretary
  may not make available to the public data that the Secretary determines
  pursuant to section 1326 are proprietary information.
  (2) EXCEPTION- The Secretary shall not restrict access to the data provided
  in accordance with section 309(m)(1)(A) of the Federal National Mortgage
  Association Charter Act or section 307(e)(1)(A) of the Federal Home Loan
  Mortgage Corporation Act.
  (c) FEES- The Secretary may charge reasonable fees to cover the cost of
  making data available under this section to the public.
SEC. 1324. ANNUAL HOUSING REPORT.
  (a) IN GENERAL- After reviewing and analyzing the reports submitted under
  section 309(n) of the Federal National Mortgage Association Charter Act
  and section 307(f) of the Federal Home Loan Mortgage Corporation Act,
  the Secretary shall submit a report, as part of the annual report under
  section 1328(a) of this title, on the extent to which each enterprise is
  achieving the annual housing goals established under subpart B of this
  part and the purposes of the enterprise established by law.
  (b) CONTENTS- The report shall--
  (1) aggregate and analyze census tract data to assess the compliance of
  each enterprise with the central cities, rural areas, and other underserved
  areas housing goal and to determine levels of business in central cities,
  rural areas, underserved areas, low- and moderate-income census tracts,
  minority census tracts, and other geographical areas deemed appropriate
  by the Secretary;
  (2) aggregate and analyze data on income to assess the compliance of
  each enterprise with the low- and moderate-income and special affordable
  housing goals;
  (3) aggregate and analyze data on income, race, and gender by census tract
  and compare  such data with larger demographic, housing, and economic trends;
  (4) examine actions that each enterprise has undertaken or could undertake
  to promote and expand the annual goals established under sections 1332,
  1333, and 1334, and the purposes of the enterprise established by law;
  (5) examine the primary and secondary multifamily housing mortgage markets
  and describe--
  (A) the availability and liquidity of mortgage credit;
  (B) the status of efforts to provide standard credit terms and underwriting
  guidelines for multifamily housing and to securitize such mortgage
  products; and
  (C) any factors inhibiting such standardization and securitization;
  (6) examine actions each enterprise has undertaken and could undertake to
  promote and expand opportunities for first-time homebuyers; and
  (7) describe any actions taken under section 1325(5) with respect to
  originators found to violate fair lending procedures.
SEC. 1325. FAIR HOUSING.
  The Secretary shall--
  (1) by regulation, prohibit each enterprise from discriminating in any
  manner in the purchase of any mortgage because of race, color, religion,
  sex, handicap, familial status, age, or national origin, including any
  consideration of the age or location of the dwelling or the age of the
  neighborhood or census tract where the dwelling is located in a manner
  that has a discriminatory effect;
  (2) by regulation, require each enterprise to submit data to the Secretary
  to assist the Secretary in investigating whether a mortgage lender with which
  the enterprise does business has failed to comply with the Fair Housing Act;
  (3) by regulation, require each enterprise to submit data to the Secretary to
  assist in investigating whether a mortgage lender with which the enterprise
  does business has failed to comply with the Equal Credit Opportunity Act,
  and shall submit any such information received to the appropriate Federal
  agencies, as provided in section 704 of the Equal Credit Opportunity Act,
  for appropriate action;
  (4) obtain information from other regulatory and enforcement agencies of
  the Federal Government and State and local governments regarding violations
  by lenders of the Fair Housing Act and the Equal Credit Opportunity Act
  and make such information available to the enterprises;
  (5) direct the enterprises to undertake various remedial actions, including
  suspension, probation, reprimand, or settlement, against lenders that
  have been found to have engaged in discriminatory lending practices in
  violation of the Fair Housing Act or the Equal Credit Opportunity Act,
  pursuant to a final adjudication on the record, and after opportunity for
  an administrative hearing, in accordance with subchapter II of chapter 5
  of title 5, United States Code; and
  (6) periodically review and comment on the underwriting and appraisal
  guidelines of each enterprise to ensure that such guidelines are consistent
  with the Fair Housing Act and this section.
SEC. 1326. PROHIBITION OF PUBLIC DISCLOSURE OF PROPRIETARY INFORMATION.
  (a) IN GENERAL- The Secretary may, by regulation or order, provide that
  certain information shall be treated as proprietary information and not
  subject to disclosure under section 1323 of this title, section 309(n)(3) of
  the Federal National Mortgage Association Charter Act, or section 307(f)(3)
  of the Federal Home Loan Mortgage Corporation Act.
  (b) PROTECTION OF INFORMATION ON HOUSING ACTIVITIES- The Secretary shall
  not provide public access to, or disclose to the public, any information
  required to be submitted by an enterprise under section 309(n) of the
  Federal National Mortgage Association Charter Act or section 307(f) of the
  Federal Home Loan Mortgage Corporation Act that the Secretary determines
  is proprietary.
  (c) NONDISCLOSURE PENDING CONSIDERATION- This section may not be construed
  to authorize the disclosure of information to, or examination of data by,
  the public or a representative of any person or agency pending the issuance
  of a final decision under this section.
SEC. 1327. AUTHORITY TO REQUIRE REPORTS BY ENTERPRISES.
  The Secretary shall require each enterprise to submit reports on its
  activities to the Secretary as the Secretary considers appropriate.
SEC. 1328. REPORTS BY SECRETARY.
  (a) ANNUAL REPORT- The Secretary shall, not later than June 30 of each year,
  submit a report to the Committee on Banking, Finance and Urban Affairs
  of the House of Representatives and the Committee on Banking, Housing,
  and Urban Affairs of the Senate on the activities of each enterprise.
  (b) VIEWS ON BUDGET AND FINANCIAL PLANS OF ENTERPRISES- On an annual basis,
  the Secretary shall provide the Committees referred to in subsection (a) with
  comments on the plans, forecasts, and reports required under section 1316(g).
Subpart B--Housing Goals
SEC. 1331. ESTABLISHMENT.
  (a) IN GENERAL- The Secretary shall establish, by regulation, housing goals
  under this subpart for each enterprise. The housing goals shall include a
  low- and moderate-income housing goal pursuant to section 1332, a special
  affordable housing goal pursuant to section 1333, and a central cities,
  rural areas, and other underserved areas housing goal pursuant to section
  1334. The Secretary shall implement this subpart in a manner consistent
  with section 301(3) of the Federal National Mortgage Association Charter
  Act and section 301(b)(3) of the Federal Home Loan Mortgage Corporation Act.
  (b) CONSIDERATION OF UNITS IN MULTIFAMILY HOUSING- In establishing any
  goal under this subpart, the Secretary may take into consideration the
  number of housing units financed by any mortgage on multifamily housing
  purchased by an enterprise.
  (c) ADJUSTMENT OF HOUSING GOALS- Except as otherwise provided in this
  title, from year to year the Secretary may, by regulation, adjust any
  housing goal established under this subpart.
SEC. 1332. LOW- AND MODERATE-INCOME HOUSING GOAL.
  (a) IN GENERAL- The Secretary shall establish an annual goal for the purchase
  by each enterprise of mortgages on housing for low- and moderate-income
  families. The Secretary may establish separate specific subgoals within
  the goal under this section and such subgoals shall not be enforceable
  under the provisions of section 1336, any other provision of this title,
  or any provision of the Federal National Mortgage Association Charter Act
  or the Federal Home Loan Mortgage Corporation Act.
  (b) FACTORS TO BE APPLIED- In establishing the goal under this section,
  the Secretary shall consider--
  (1) national housing needs;
  (2) economic, housing, and demographic conditions;
  (3) the performance and effort of the enterprises toward achieving the low-
  and moderate-income housing goal in previous years;
  (4) the size of the conventional mortgage market serving low- and
  moderate-income families relative to the size of the overall conventional
  mortgage market;
  (5) the ability of the enterprises to lead the industry in making mortgage
  credit available for low- and moderate-income families; and
  (6) the need to maintain the sound financial condition of the enterprises.
  (c) USE OF BORROWER AND TENANT INCOME-
  (1) IN GENERAL- The Secretary shall monitor the performance of each
  enterprise in carrying out this section and shall evaluate such performance
  (for purposes of section 1336) based on--
  (A) in the case of an owner-occupied dwelling, the mortgagor's income at
  the time of origination of the mortgage; or
  (B) in the case of a rental dwelling--
  (i) the income of the prospective or actual tenants of the property,
  where such data are available; or
  (ii) the rent levels affordable to low- and moderate-income families,
  where the data referred to in clause (i) are not available.
  (2) AFFORDABILITY- For the purpose of paragraph (1)(B)(ii), a rent level
  shall be considered affordable if it does not exceed 30 percent of the
  maximum income level of the income categories referred to in this section,
  with appropriate adjustments for unit size as measured by the number
  of bedrooms.
  (d) TRANSITION-
  (1) INTERIM TARGET- Notwithstanding any other provision of this section,
  during the 2-year period beginning on January 1, 1993, the annual target
  under this section for low- and moderate-income mortgage purchases for
  each enterprise shall be 30 percent of the total number of dwelling units
  financed by mortgage purchases of the enterprise.
  (2) INTERIM GOAL- During such 2-year period, the Secretary shall establish
  a separate annual goal for each enterprise, the achievement of which
  shall require--
  (A) an enterprise that is not meeting the target under paragraph (1)
  upon January 1, 1993, to improve its performance relative to such target
  annually and, to the maximum extent feasible, to meet such target at the
  conclusion of such 2-year period; and
  (B) an enterprise that is meeting the target under paragraph (1) upon
  January 1, 1993, to improve its performance relative to the target.
  (3) IMPLEMENTATION- The Secretary shall establish any requirements necessary
  to implement the transition provisions under this subsection by notice,
  after providing the enterprises with an opportunity to review and comment
  not less than 30 days before the issuance of such notice. Such notice shall
  be issued not later than the expiration of the 90-day period beginning upon
  the date of the enactment of this Act and shall be effective upon issuance.
SEC. 1333. SPECIAL AFFORDABLE HOUSING GOAL.
  (a) ESTABLISHMENT-
  (1) IN GENERAL- The Secretary shall establish a special annual goal
  designed to adjust the purchase by each enterprise of mortgages on rental
  and owner-occupied housing to meet the then-existing unaddressed needs
  of, and affordable to, low-income families in low-income areas and very
  low-income families. The special affordable housing goal established under
  this section for an enterprise shall not be less than 1 percent of the dollar
  amount of the mortgage purchases by the enterprise for the previous year.
  (2) STANDARDS- In establishing the special affordable housing goal for an
  enterprise, the Secretary shall consider--
  (A) data submitted to the Secretary in connection with the special affordable
  housing goal for previous years;
  (B) the performance and efforts of the enterprise toward achieving the
  special affordable housing goal in previous years;
  (C) national housing needs within the categories set forth in this section;
  (D) the ability of the enterprise to lead the industry in making mortgage
  credit available for low-income and very low-income families; and
  (E) the need to maintain the sound financial condition of the enterprise.
  (b) FULL CREDIT ACTIVITIES-
  (1) IN GENERAL- The Secretary shall give full credit toward achievement
  of the special affordable housing goal under this section (for purposes
  of section 1336) to the following activities:
  (A) FEDERALLY RELATED MORTGAGES- The purchase or securitization of federally
  insured or guaranteed mortgages, if--
  (i) such mortgages cannot be readily securitized through the Government
  National Mortgage Association or any other Federal agency;
  (ii) participation of the enterprise substantially enhances the affordability
  of the housing subject to such mortgages; and
  (iii) the mortgages involved are on housing that otherwise qualifies under
  such goal to be considered for purposes of such goal.
  (B) PORTFOLIOS- The purchase or refinancing of existing, seasoned portfolios
  of loans, if--
  (i) the seller is engaged in a specific program to use the proceeds of
  such sales to originate additional loans that meet such goal; and
  (ii) such purchases or refinancings support additional lending for housing
  that otherwise qualifies under such goal to be considered for purposes of
  such goal.
  (C) RTC AND FDIC LOANS- The purchase of direct loans made by the Resolution
  Trust Corporation or the Federal Deposit Insurance Corporation, if such
  loans--
  (i) are not guaranteed by such agencies themselves or other Federal agencies;
  (ii) are made with recourse provisions similar to those offered through
  private mortgage insurance or other conventional sellers; and
  (iii) are made for the purchase of housing that otherwise qualifies under
  such goal to be considered for purposes of such goal.
  (2) EXCLUSION- No credit toward the achievement of the special affordable
  housing goal may be given to the purchase or securitization of mortgages
  associated with the refinancing of the existing enterprise portfolios.
  (c) USE OF BORROWER AND TENANT INCOME-
  (1) IN GENERAL- The Secretary shall monitor the performance of each
  enterprise in carrying out this section and shall evaluate such performance
  (for purposes of section 1336) based on--
  (A) in the case of an owner-occupied dwelling, the mortgagor's income at
  the time of origination of the mortgage; or
  (B) in the case of a rental dwelling--
  (i) the income of the prospective or actual tenants of the property,
  where such data are available; or
  (ii) the rent levels affordable to low-income and very low-income families,
  where the data referred to in clause (i) are not available.
  (2) AFFORDABILITY- For the purpose of paragraph (1)(B)(ii), a rent level
  shall be considered affordable if it does not exceed 30 percent of the
  maximum income level of the income categories referred to in this section,
  with appropriate adjustments for unit size as measured by the number
  of bedrooms.
  (d) TRANSITION-
  (1) FNMA MORTGAGE PURCHASES- Notwithstanding any other provision of this
  section, during the 2-year period beginning on January 1, 1993, the special
  affordable housing goal for the Federal National Mortgage Association shall
  include mortgage purchases of not less than $2,000,000,000 (for such 2-year
  period), with one-half of such purchases consisting of mortgages on single
  family housing and one-half consisting of mortgages on multifamily housing.
  (2) FHLMC MORTGAGE PURCHASES- Notwithstanding any other provision of this
  section, during the 2-year period beginning on January 1, 1993, the special
  affordable housing goal for the Federal Home Loan Mortgage Corporation shall
  include mortgage purchases of not less than $1,500,000,000 (for such 2-year
  period), with one-half of such purchases consisting of mortgages on single
  family housing and one-half consisting of mortgages on multifamily housing.
  (3) INCOME CHARACTERISTICS FOR MORTGAGE PURCHASES-
  (A) MULTIFAMILY MORTGAGES- The special affordable housing goals established
  under paragraphs (1) and (2) shall provide that, of mortgages on multifamily
  housing that are purchased and contribute to the achievement of such goals--
  (i) 45 percent shall be mortgages on multifamily housing affordable to
  low-income families; and
  (ii) 55 percent shall be mortgages on multifamily housing in which--
  (I) at least 20 percent of the units are affordable to families whose
  incomes do not exceed 50 percent of the median income for the area; or
  (II) at least 40 percent of the units are affordable to very low-income
  families.
  (B) SINGLE FAMILY MORTGAGES- The special affordable housing goals established
  under paragraphs (1) and (2) shall provide that, of mortgages on single
  family housing that are purchased and contribute to the achievement of
  such goals--
  (i) 45 percent shall be mortgages of low-income families who live in census
  tracts in which the median income does not exceed 80 percent of the area
  median income; and
  (ii) 55 percent shall be mortgages of very low-income families.
  (C) COMPLIANCE WITH SPECIAL AFFORDABLE HOUSING GOALS- Only the portion
  of mortgages on multifamily housing purchased by an enterprise that are
  attributable to units affordable to low-income families shall contribute to
  the achievement of the special affordable housing goals under subparagraph
  (A)(ii).
  (4) IMPLEMENTATION- The Secretary shall establish any requirements necessary
  to implement the transition provisions under this subsection by notice,
  after providing the enterprises with an opportunity to review and comment
  not less than 30 days before the issuance of such notice. Such notice shall
  be issued not later than the expiration of the 90-day period beginning upon
  the date of the enactment of this Act and shall be effective upon issuance.
SEC. 1334. CENTRAL CITIES, RURAL AREAS, AND OTHER UNDERSERVED AREAS HOUSING
GOAL.
  (a) IN GENERAL- The Secretary shall establish an annual goal for the purchase
  by each enterprise of mortgages on housing located in central cities,
  rural areas, and other underserved areas. The Secretary may establish
  separate subgoals within the goal under this section and such subgoals