Text: S.811 — 108th Congress (2003-2004)All Information (Except Text)

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Public Law No: 108-186 (12/16/2003)

 
[108th Congress Public Law 186]
[From the U.S. Government Printing Office]


[DOCID: f:publ186.108]

[[Page 117 STAT. 2685]]

Public Law 108-186
108th Congress

                                 An Act


 
To support certain housing proposals in the fiscal year 2003 budget for 
the Federal Government, including the downpayment assistance initiative 
        under the HOME Investment Partnership Act, and for other 
             purposes. <<NOTE: Dec. 16, 2003 -  [S. 811]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.

                     TITLE I--DOWNPAYMENT ASSISTANCE

Sec. 101. Short title.
Sec. 102. Downpayment assistance initiative.

             TITLE II--INTERGENERATIONAL HOUSING ASSISTANCE

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Demonstration program for elderly housing for 
           intergenerational families.
Sec. 204. Training for HUD personnel regarding grandparent-headed and 
           relative-headed families issues.
Sec. 205. Study of housing needs of grandparent-headed and relative-
           headed families.

   TITLE III--ADJUSTABLE RATE SINGLE FAMILY MORTGAGES AND LOAN LIMIT 
                               ADJUSTMENTS

Sec. 301. Hybrid arms.
Sec. 302. FHA multifamily loan limit adjustments.

                TITLE IV--HOPE VI PROGRAM REAUTHORIZATION

Sec. 401. Short title.
Sec. 402. Hope VI program reauthorization.
Sec. 403. Hope VI grants for assisting affordable housing through main 
           street projects.

               TITLE V--COMMUNITY DEVELOPMENT BLOCK GRANTS

Sec. 501. Funding for insular areas.

     TITLE <<NOTE: American Dream Downpayment Act.>> I--DOWNPAYMENT 
ASSISTANCE

SEC. 101. SHORT TITLE. <<NOTE: 42 USC 12701 note.>> 

    This title may be cited as the ``American Dream Downpayment Act''.

SEC. 102. DOWNPAYMENT ASSISTANCE INITIATIVE.

    Subtitle E of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12821) is amended to read as follows:

[[Page 117 STAT. 2686]]

                     ``Subtitle E--Other Assistance

``SEC. 271. <<NOTE: 42 USC 12821.>> DOWNPAYMENT ASSISTANCE INITIATIVE.

    ``(a) Definitions.--In this section:
            ``(1) Downpayment assistance.--The term ``downpayment 
        assistance'' means assistance to help a family acquire a 
        principal residence.
            ``(2) Home repairs.--The term ``home repairs'' means capital 
        improvements or repairs that--
                    ``(A) are identified in an appraisal or home 
                inspection completed in conjunction with a home 
                purchase; or
                    ``(B) are completed within 1 year of the purchase of 
                a home, and are necessary to bring the housing into 
                compliance with health and safety housing codes of the 
                unit of general local government in which the housing is 
                located, including the remediation of lead paint or 
                other home health hazards.
            ``(3) Participating jurisdiction.--The term ``participating 
        jurisdiction'' means a State or unit of general local government 
        designated under section 216.
            ``(4) State.--The term ``State'' means any State of the 
        United States and the District of Columbia.

    ``(b) Grant Authority.--The Secretary may award grants to 
participating jurisdictions to assist low-income families to achieve 
homeownership, in accordance with this section.
    ``(c) Eligible Activities.--
            ``(1) In general.--
                    ``(A) Downpayment assistance.--Subject to 
                subparagraph (B), grants awarded under this section may 
                be used only for downpayment assistance toward the 
                purchase of single family housing (including 1 to 4 unit 
                family dwelling units, condominium units, cooperative 
                units, and manufactured housing units which are located 
                on land which is owned by the manufactured housing unit 
                owner, owned as a cooperative, or is subject to a 
                leasehold interest with a term equal to at least the 
                term of the mortgage financing on the unit, and 
                manufactured housing lots) by low-income families who 
                are first-time home-buyers.
                    ``(B) Home repairs.--Not more than 20 percent of the 
                grant funds provided under subsection (d) to a 
                participating jurisdiction may be used to provide 
                assistance to low-income, first-time home-buyers for 
                home repairs.
            ``(2) Limitations.--
                    ``(A) Amount of assistance.--The amount of 
                assistance provided to any low-income families under 
                paragraph (1) shall not exceed the greater of--
                          ``(i) 6 percent of the purchase price of a 
                      single family housing unit; or
                          ``(ii) $10,000.
                    ``(B) Participation.--A participating jurisdiction 
                may not use any amount of a grant awarded under this 
                section to provide funding to an entity or organization 
                that provides downpayment assistance if the activities 
                of that entity or organization are financed in whole or 
                in part, directly or indirectly, by contributions, 
                service fees, or other payments from the sellers of 
                housing.

[[Page 117 STAT. 2687]]

    ``(d) Formula Allocation.--
            ``(1) In general.--For each fiscal year, the Secretary shall 
        allocate any amounts made available for assistance under this 
        section to each State that is a participating jurisdiction in an 
        amount equal to a percentage of the total allocation that is 
        equal to the percentage of the national total of low-income 
        households residing in rental housing in the State, as 
        determined on the basis of the most recent census data compiled 
        by the Bureau of the Census.
            ``(2) Participating jurisdictions other than states.--
                    ``(A) In general.--Subject to subparagraph (B), for 
                each fiscal year, of the amount allocated to each State 
                under paragraph (1), the Secretary shall further 
                allocate from such amount to each participating 
                jurisdiction located within such State an amount equal 
                to the percentage of the allocation made to the State 
                under paragraph (1) that is equal to the percentage of 
                the State-wide total of low-income households residing 
                in rental housing in such participating jurisdiction, as 
                determined on the basis of the most recent census data 
                compiled by the Bureau of the Census.
                    ``(B) Limitation.--
                          ``(i) In general.--Direct allocations made 
                      under subparagraph (A) shall be made to a local 
                      participating jurisdiction only if--
                                    ``(I) the participating jurisdiction 
                                has a total population of 150,000 
                                individuals or more, as determined on 
                                the basis of the most recent census data 
                                compiled by the Bureau of the Census; or
                                    ``(II) the participating 
                                jurisdiction would receive an allocation 
                                of $50,000 or more.
                          ``(ii) Reversion.--Any allocation that would 
                      have otherwise been made to a participating 
                      jurisdiction that does not meet the requirements 
                      of clause (i) shall revert back to the State in 
                      which the participating jurisdiction is located.

    ``(e) Reallocation.--If any amounts allocated to a participating 
jurisdiction under this section become available for reallocation, the 
amounts shall be reallocated to other participating jurisdictions in 
accordance with subsection (d).
    ``(f) Applicability of Other Provisions.--
            ``(1) In general.--Except as otherwise provided in this 
        section, grants made under this section shall not be subject to 
        the provisions of this title.
            ``(2) Applicable provisions.--In addition to the 
        requirements of this section, grants made under this section 
        shall be subject to the provisions of title I, sections 215(b), 
        218, 219, 221, 223, 224, and 226(a) of subtitle A of this title, 
        and subtitle F of this title.
            ``(3) References.--In applying the requirements of subtitle 
        A referred to in paragraph (2)--
                    ``(A) any references to funds under subtitle A shall 
                be considered to refer to amounts made available for 
                assistance under this section; and
                    ``(B) any references to funds allocated or 
                reallocated under section 217 or 217(d) shall be 
                considered to refer

[[Page 117 STAT. 2688]]

                to amounts allocated or reallocated under subsection (d) 
                or (e) of this section, respectively.

    ``(g) Housing Strategy.--To be eligible to receive a grant under 
this section in any fiscal year, a participating jurisdiction shall 
include in its comprehensive housing affordability strategy developed 
under section 105 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12705) for such fiscal year--
            ``(1) a description of the anticipated use of any grant 
        received under this section;
            ``(2) a plan for conducting targeted outreach to residents 
        and tenants of public housing, trailer parks, and manufactured 
        housing, and to other families assisted by public housing 
        agencies, for the purpose of ensuring that grant amounts 
        provided under this section to a participating jurisdiction are 
        used for downpayment assistance for such residents, tenants, and 
        families; and
            ``(3) a description of the actions to be taken to ensure the 
        suitability of families receiving downpayment assistance under 
        this section to undertake and maintain homeownership.

    ``(h) Report.--Not <<NOTE: Deadline.>> later than June 30, 2006, the 
Comptroller General of the United States shall submit a report 
containing a State-by-State analysis of the impact of grants awarded 
under this section to--
            ``(1) the Committee on Banking, Housing, and Urban Affairs 
        of the Senate; and
            ``(2) the Committee on Financial Services of the House of 
        Representatives.

    ``(i) Sunset.--The Secretary shall have no authority to make grants 
under this Act after December 31, 2007.
    ``(j) Relocation Assistance and Downpayment Assistance.--The Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 1970 
(84 Stat. 1894) shall not apply to downpayment assistance under this 
section.
    ``(k) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $200,000,000 for each of fiscal 
years 2004 through 2007.''.

 TITLE <<NOTE: Living Equitably: Grandparents Aiding Children and Youth 
Act of 2003.>> II--INTERGENERATIONAL HOUSING ASSISTANCE

SEC. 201. <<NOTE: 12 USC 1701q note.>> SHORT TITLE.

    This title may be cited as the ``Living Equitably: Grandparents 
Aiding Children and Youth Act of 2003'' or the ``LEGACY Act of 2003''.

SEC. 202. <<NOTE: 12 USC 1701q note.>> DEFINITIONS.

    In this title:
            (1) Child.--The term ``child'' means an individual who--
                    (A) is not attending school and is not more than 18 
                years of age; or
                    (B) is attending school and is not more than 19 
                years of age.
            (2) Covered family.--The term ``covered family'' means a 
        family that--
                    (A) includes a child; and
                    (B) has a head of household who is--

[[Page 117 STAT. 2689]]

                          (i) a grandparent of the child who is raising 
                      the child; or
                          (ii) a relative of the child who is raising 
                      the child.
            (3) Elderly person.--The term ``elderly person'' has the 
        same meaning as in section 202(k) of the Housing Act of 1959 (12 
        U.S.C. 1701q(k)).
            (4) Grandparent.--
                    (A) In general.--The term ``grandparent'' means, 
                with respect to a child, an individual who is a 
                grandparent or stepgrandparent of the child by blood or 
                marriage, regardless of the age of such individual.
                    (B) Case of adoption.--In the case of a child who 
                was adopted, the term includes an individual who, by 
                blood or marriage, is a grandparent or stepgrandparent 
                of the child as adopted.
            (5) Intergenerational dwelling unit.--The term 
        ``intergenerational dwelling unit'' means a qualified dwelling 
        unit that is reserved for occupancy only by an intergenerational 
        family.
            (6) Intergenerational family.--The term ``intergenerational 
        family'' means a covered family that has a head of household who 
        is an elderly person.
            (7) Private nonprofit organization.--The term ``private 
        nonprofit organization'' has the same meaning as in section 
        202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)).
            (8) Qualified dwelling unit.--The term ``qualified dwelling 
        unit'' means a dwelling unit that--
                    (A) has not fewer than 2 separate bedrooms;
                    (B) is equipped with design features appropriate to 
                meet the special physical needs of elderly persons, as 
                needed; and
                    (C) is equipped with design features appropriate to 
                meet the special physical needs of young children, as 
                needed.
            (9) Raising a child.--The term ``raising a child'' means, 
        with respect to an individual, that the individual--
                    (A) resides with the child; and
                    (B) is the primary caregiver for the child--
                          (i) because the biological or adoptive parents 
                      of the child do not reside with the child or are 
                      unable or unwilling to serve as the primary 
                      caregiver for the child; and
                          (ii) regardless of whether the individual has 
                      a legal relationship to the child (such as 
                      guardianship or legal custody) or is caring for 
                      the child informally and has no such legal 
                      relationship with the child.
            (10) Relative.--
                    (A) In general.--The term ``relative'' means, with 
                respect to a child, an individual who--
                          (i) is not a parent of the child by blood or 
                      marriage; and
                          (ii) is a relative of the child by blood or 
                      marriage, regardless of the age of the individual.
                    (B) Case of adoption.--In the case of a child who 
                was adopted, the term ``relative'' includes an 
                individual who, by blood or marriage, is a relative of 
                the family who adopted the child.

[[Page 117 STAT. 2690]]

            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
SEC. 203. DEMONSTRATION <<NOTE: 12 USC 1701q note.>> PROGRAM FOR 
                        ELDERLY HOUSING FOR INTERGENERATIONAL 
                        FAMILIES.

    (a) Demonstration Program.--The Secretary shall carry out a 
demonstration program (referred to in this section as the 
``demonstration program'') to provide assistance for intergenerational 
dwelling units for intergenerational families in connection with the 
supportive housing program under section 202 of the Housing Act of 1959 
(12 U.S.C. 1701q).
    (b) Intergenerational Dwelling Units.--The Secretary shall provide 
assistance under this section only to private nonprofit organizations 
selected under subsection (d) for use only for expanding the supply of 
intergenerational dwelling units, which units shall be provided--
            (1) by designating and retrofitting, for use as 
        intergenerational dwelling units, existing dwelling units that 
        are located within a project assisted under section 202 of the 
        Housing Act of 1959 (12 U.S.C. 1701q);
            (2) through development of buildings or projects comprised 
        solely of intergenerational dwelling units; or
            (3) through the development of an annex or addition to an 
        existing project assisted under section 202 of the Housing Act 
        of 1959 (12 U.S.C. 1701q), that contains intergenerational 
        dwelling units, including through the development of elder 
        cottage housing opportunity units that are small, freestanding, 
        barrier free, energy efficient, removable dwelling units located 
        adjacent to a larger project or dwelling.

    (c) Program Terms.--Assistance provided pursuant to this section 
shall be subject to the provisions of section 202 of the Housing Act of 
1959 (12 U.S.C. 1701q), except that--
            (1) notwithstanding subsection (d)(1) of that section 202 or 
        any provision of that section restricting occupancy to elderly 
        persons, any intergenerational dwelling unit assisted under the 
        demonstration program may be occupied by an intergenerational 
        family;
            (2) subsections (e) and (f) of that section 202 shall not 
        apply;
            (3) in addition to the requirements under subsection (g) of 
        that section 202, the Secretary shall--
                    (A) ensure that occupants of intergenerational 
                dwelling units assisted under the demonstration program 
                are provided a range of services that are tailored to 
                meet the needs of elderly persons, children, and 
                intergenerational families; and
                    (B) coordinate with the heads of other Federal 
                agencies as may be appropriate to ensure the provision 
                of such services; and
            (4) the Secretary may waive or alter any other provision of 
        that section 202 necessary to provide for assistance under the 
        demonstration program.

    (d) Selection.--The <<NOTE: Procedures.>> Secretary shall--
            (1) establish application procedures for private nonprofit 
        organizations to apply for assistance under this section; and
            (2) to the extent that amounts are made available pursuant 
        to subsection (f), select not less than 2 and not more than

[[Page 117 STAT. 2691]]

        4 projects that are assisted under section 202 of the Housing 
        Act of 1959 (12 U.S.C. 1701q) for assistance under this section, 
        based on the ability of the applicant to develop and operate 
        intergenerational dwelling units and national geographical 
        diversity among those projects funded.

    (e) Report.--Not <<NOTE: Deadline.>> later than 36 months after the 
date of enactment of this Act, the Secretary shall submit a report to 
Congress that--
            (1) describes the demonstration program; and
            (2) analyzes the effectiveness of the demonstration program.

    (f) Authorization of Appropriations.--There are authorized to be 
appropriated $10,000,000 to carry out this section.
    (g) Sunset.--The demonstration program carried out under this 
section shall terminate 5 years after the date of enactment of this Act.
SEC. 204. TRAINING <<NOTE: 12 USC 1701q note.>> FOR HUD PERSONNEL 
                        REGARDING GRANDPARENT-HEADED AND RELATIVE-
                        HEADED FAMILIES ISSUES.

    Section 7 of the Department of Housing and Urban Development Act (42 
U.S.C. 3535) is amended by adding at the end the following:
    ``(t) Training Regarding Issues Relating to Grandparent-Headed and 
Relative-Headed Families.--The Secretary shall ensure that all personnel 
employed in field offices of the Department who have responsibilities 
for administering the housing assistance program under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f) or the supportive 
housing program under section 202 of the Housing Act of 1959 (12 U.S.C. 
1701q), and an appropriate number of personnel in the headquarters 
office of the Department who have responsibilities for those programs, 
have received adequate training regarding how covered families (as that 
term is defined in section 202 of the LEGACY Act of 2003) can be served 
by existing affordable housing programs.''.
SEC. 205. STUDY <<NOTE: 12 USC 1701q note.>> OF HOUSING NEEDS OF 
                        GRANDPARENT-HEADED AND RELATIVE-HEADED 
                        FAMILIES.

    (a) In General.--The Secretary and the Director of the Bureau of the 
Census jointly shall--
            (1) conduct a study to determine an estimate of the number 
        of covered families in the United States and their affordable 
        housing needs; and
            (2) submit a report to Congress regarding the results of the 
        study conducted under paragraph (1).

    (b) Report and Recommendations.--The report required under 
subsection (a) shall--
            (1) <<NOTE: Deadline.>> be submitted to Congress not later 
        than 12 months after the date of enactment of this Act; and
            (2) include recommendations by the Secretary and the 
        Director of the Bureau of the Census regarding how the major 
        assisted housing programs of the Department of Housing and Urban 
        Development, including the supportive housing for the elderly 
        program under section 202 of the Housing Act of 1959 (12 U.S.C. 
        1701q) can be used and, if appropriate, amended or altered, to 
        meet the affordable housing needs of covered families.

[[Page 117 STAT. 2692]]

   TITLE III--ADJUSTABLE RATE SINGLE FAMILY MORTGAGES AND LOAN LIMIT 
                               ADJUSTMENTS

SEC. 301. HYBRID ARMS.

    (a) In General.--Section 251(d)(1)(C) of the National Housing Act 
(12 U.S.C. 1715z-16(d)(1)(C)) is amended by striking ``five'' and 
inserting ``3''.
    (b) <<NOTE: 12 USC 1715z-16 note.>> Applicability.--The amendment 
made by subsection (a) shall apply to mortgages executed on or after the 
date of the enactment of this title.

SEC. 302. <<NOTE: FHA Multifamily Loan Limit Adjustment Act of 2003. 12 
            USC 1701 note.>> FHA MULTIFAMILY LOAN LIMIT ADJUSTMENTS.

    (a) Short Title.--This section may be cited as the ``FHA Multifamily 
Loan Limit Adjustment Act of 2003''.
    (b) Maximum Mortgage Amount Limit for Multifamily Housing in High-
Cost Areas.--Sections 207(c)(3), 213(b)(2)(B)(i), 
220(d)(3)(B)(iii)(III), 221(d)(3)(ii)(II), 221(d)(4)(ii)(II), 
231(c)(2)(B), and 234(e)(3)(B) of the National Housing Act (12 U.S.C. 
1713(c)(3), 1715e(b)(2)(B)(i), 1715k(d)(3)(B)(iii)(II), 
1715l(d)(3)(ii)(III), 1715l(d)(4)(ii)(II), 1715v(c)(2)(B), and 
1715y(e)(3)(B)) are each amended--
            (1) by striking ``110 percent'' and inserting ``140 
        percent''; and
            (2) by inserting ``, or 170 percent in high cost areas,'' 
        after ``140 percent''.

    (c) Catch-up Adjustments to Certain Maximum Mortgage Amount 
Limits.--
            (1) Section 207 limits.--Section 207(c)(3)(A) of the 
        National Housing Act (12 U.S.C. 1713(c)(3)(A)) is amended by 
        striking ``$11,250'' and inserting ``$17,460''.
            (2) Section 213 limits.--Section 213(b)(2)(A) of the 
        National Housing Act (12 U.S.C. 1715e(b)(2)(A)) is amended--
                    (A) by striking ``$38,025'' and inserting 
                ``$41,207'';
                    (B) by striking ``$42,120'' and inserting 
                ``$47,511'';
                    (C) by striking ``$50,310'' and inserting 
                ``$57,300'';
                    (D) by striking ``$62,010'' and inserting 
                ``$73,343'';
                    (E) by striking ``$70,200'' and inserting 
                ``$81,708'';
                    (F) by striking ``$49,140'' and inserting 
                ``$49,710'';
                    (G) by striking ``$60,255'' and inserting 
                ``$60,446'';
                    (H) by striking ``$75,465'' and inserting 
                ``$78,197''; and
                    (I) by striking ``$85,328'' and inserting 
                ``$85,836''.

    (d) Rehabilitation and Neighborhood Conservation Housing Mortgage 
Insurance.--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 ``with respect to dollar amount limitations 
        applicable to rehabilitation projects described in subclause 
        (II),'' and inserting ``; (III)''; and
            (2) by redesignating subclauses (III) and (IV) as subclauses 
        (IV) and (V), respectively.

[[Page 117 STAT. 2693]]

   TITLE <<NOTE: Hope VI Program Reauthorization and Small Community 
 Mainstreet Rejuvenation and Housing Act of 2003.>> IV--HOPE VI PROGRAM 
REAUTHORIZATION

SEC. 401. <<NOTE: 42 USC 1437 note.>> SHORT TITLE.

    This title may be cited as the ``HOPE VI Program Reauthorization and 
Small Community Mainstreet Rejuvenation and Housing Act of 2003''.

SEC. 402. HOPE VI PROGRAM REAUTHORIZATION.

    (a) Selection Criteria.--Section 24(e)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended--
            (1) by striking the matter preceding subparagraph (A) and 
        inserting the following:
            ``(2) Selection criteria.--The Secretary shall establish 
        criteria for the award of grants under this section and shall 
        include among the factors--'';
            (2) in subparagraph (B), by striking ``large-scale'';
            (3) in subparagraph (D)--
                    (A) by inserting ``and ongoing implementation'' 
                after ``development''; and
                    (B) by inserting ``, except that the Secretary may 
                not award a grant under this section unless the 
                applicant has involved affected public housing residents 
                at the beginning and during the planning process for the 
                revitalization program, prior to submission of an 
                application'' before the semicolon at the end;
            (4) in subparagraph (H), by striking ``and'' at the end;
            (5) by redesignating subparagraph (I) as subparagraph (L); 
        and
            (6) by inserting after subparagraph (H) the following:
                    ``(I) the extent to which the plan minimizes 
                permanent displacement of current residents of the 
                public housing site who wish to remain in or return to 
                the revitalized community and provides for community and 
                supportive services to residents prior to any 
                relocation;
                    ``(J) the extent to which the plan sustains or 
                creates more project-based housing units available to 
                persons eligible for public housing in markets where the 
                plan shows there is demand for the maintenance or 
                creation of such units;
                    ``(K) the extent to which the plan gives to existing 
                residents priority for occupancy in dwelling units which 
                are public housing dwelling units, or for residents who 
                can afford to live in other units, priority for those 
                units in the revitalized community; and''.

    (b) Definition of Severely Distressed Public Housing.--Section 
24(j)(2)(A)(iii) of the United States Housing Act of 1937 (42 U.S.C. 
1437v(j)(2)(A)(iii)) is amended--
            (1) in subclause (I), by striking ``or'' at the end;
            (2) in subclause (II), by inserting ``or'' after the 
        semicolon at the end; and
            (3) by inserting at the end the following:
                          ``(III) is lacking in sufficient appropriate 
                      transportation, supportive services, economic 
                      opportunity, schools, civic and religious 
                      institutions, and public services, resulting in 
                      severe social distress in the project;''.

[[Page 117 STAT. 2694]]

    (c) Study <<NOTE: Deadline. Reports. 42 USC 1437v note.>> of Elderly 
and Disabled Public Housing Needs.--Not later than 18 months after the 
date of enactment of this Act, the Comptroller General of the United 
States shall submit a report to Congress regarding the extent of 
severely distressed elderly and non-elderly disabled public housing, and 
recommendations for improving that housing through the HOPE VI program 
or other means, taking into account the special needs of the residents.

    (d) Authorization of Appropriations.--Paragraph (1) of section 24(m) 
of the United States Housing Act of 1937 (42 U.S.C. 1437v(m)(1)) is 
amended by striking ``, 2001, and 2002'' and inserting ``through 2006''.
    (e) Extension of Program.--Section 24(n) of the United States 
Housing Act of 1937 (42 U.S.C. 1437v(n)) is amended by striking 
``September 30, 2004'' and inserting ``September 30, 2006''.
SEC. 403. HOPE VI GRANTS FOR ASSISTING AFFORDABLE HOUSING THROUGH 
                        MAIN STREET PROJECTS.

    (a)  Purposes.--Section 24(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437v(a)) is amended by adding after and below paragraph 
(4) the following:
``It is also the purpose of this section to provide assistance to 
smaller communities for the purpose of facilitating the development of 
affordable housing for low-income families that is undertaken in 
connection with a main street revitalization or redevelopment project in 
such communities.''.
    (b) Grants for Assisting Affordable Housing Developed Through Main 
Street Projects in Smaller Communities.--Section 24 of the United States 
Housing Act of 1937 (42 U.S.C. 1437v) is amended--
            (1) by redesignating subsection (n) as subsection (o); and
            (2) by inserting after subsection (m) the following new 
        subsection:

    ``(n) Grants for Assisting Affordable Housing Developed Through Main 
Street Projects in Smaller Communities.--
            ``(1) Authority and use of grant amounts.--The Secretary may 
        make grants under this subsection to smaller communities. Such 
        grant amounts shall be used by smaller communities only to 
        provide assistance to carry out eligible affordable housing 
        activities under paragraph (4) in connection with an eligible 
        project under paragraph (2).
            ``(2) Eligible project.--For purposes of this subsection, 
        the term `eligible project' means a project that--
                    ``(A) the Secretary determines, under the criteria 
                established pursuant to paragraph (3), is a main street 
                project;
                    ``(B) is carried out within the jurisdiction of a 
                smaller community receiving the grant; and
                    ``(C) involves the development of affordable housing 
                that is located in the commercial area that is the 
                subject of the project.
            ``(3) Main street projects.--The Secretary shall establish 
        requirements for a project to be considered a main street 
        project for purposes of this section, which shall require that 
        the project--
                    ``(A) has as its purpose the revitalization or 
                redevelopment of a historic or traditional commercial 
                area;

[[Page 117 STAT. 2695]]

                    ``(B) involves investment, or other participation, 
                by the government for, and private entities in, the 
                community in which the project is carried out; and
                    ``(C) complies with such historic preservation 
                guidelines or principles as the Secretary shall identify 
                to preserve significant historic or traditional 
                architectural and design features in the structures or 
                area involved in the project.
            ``(4) Eligible affordable housing activities.--For purposes 
        of this subsection, the activities described in subsection 
        (d)(1) shall be considered eligible affordable housing 
        activities, except that--
                    ``(A) such activities shall be conducted with 
                respect to affordable housing rather than with respect 
                to severely distressed public housing projects; and
                    ``(B) eligible affordable housing activities under 
                this subsection shall not include the activities 
                described in subparagraphs (B) through (E), (J), or (K) 
                of subsection (d)(1).
            ``(5) Maximum grant amount.--A grant under this subsection 
        for a fiscal year for a single smaller community may not exceed 
        $1,000,000.
            ``(6) Contribution requirement.--A smaller community 
        applying for a grant under this subsection shall be considered 
        an applicant for purposes of subsection (c) (relating to 
        contributions by applicants), except that--
                    ``(A) such supplemental amounts shall be used only 
                for carrying out eligible affordable housing activities; 
                and
                    ``(B) paragraphs (1)(B) and (3) shall not apply to 
                grants under this subsection.
            ``(7) Applications and selection.--
                    ``(A) Application.--Pursuant to subsection (e)(1), 
                the Secretary shall provide for smaller communities to 
                apply for grants under this subsection, except that the 
                Secretary may establish such separate or additional 
                criteria for applications for such grants as may be 
                appropriate to carry out this subsection.
                    ``(B) Selection criteria.--The Secretary shall 
                establish selection criteria for the award of grants 
                under this subsection, which shall be based on the 
                selection criteria established pursuant to subsection 
                (e)(2), with such changes as may be appropriate to carry 
                out the purposes of this subsection.
            ``(8) Cost limits.--The cost limits established pursuant to 
        subsection (f) shall apply to eligible affordable housing 
        activities assisted with grant amounts under this subsection.
            ``(9) Inapplicability of other provisions.--The provisions 
        of subsections (g) (relating to disposition and replacement of 
        severely distressed public housing), and (h) (relating to 
        administration of grants by other entities), shall not apply to 
        grants under this subsection.
            ``(10) Reporting.--The Secretary shall require each smaller 
        community receiving a grant under this subsection to submit a 
        report regarding the use of all amounts provided under the 
        grant.
            ``(11) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:

[[Page 117 STAT. 2696]]

                    ``(A) Affordable housing.--The term `affordable 
                housing' means rental or homeownership dwelling units 
                that--
                          ``(i) are made available for initial occupancy 
                      to low-income families, with a subset of units 
                      made available to very- and extremely-low income 
                      families; and
                          ``(ii) are subject to the same rules regarding 
                      occupant contribution toward rent or purchase and 
                      terms of rental or purchase as dwelling units in 
                      public housing projects assisted with a grant 
                      under this section.
                    ``(B) Smaller community.--The term `smaller 
                community' means a unit of general local government (as 
                such term is defined in section 102 of the Housing and 
                Community Development Act of 1974 (42 U.S.C. 5302)) 
                that--
                          ``(i) has a population of 50,000 or fewer; and
                          ``(ii)(I) is not served by a public housing 
                      agency; or
                          ``(II) is served by a single public housing 
                      agency, which agency administers 100 or fewer 
                      public housing dwelling units.''.

    (c) Annual Report.--Section 24(l) of the United States Housing Act 
of 1937 (42 U.S.C. 1437v(l)) is amended--
            (1) in paragraph (3), by striking ``; and'' and inserting 
        ``, including a specification of the amount and type of 
        assistance provided under subsection (n);'';
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following:
            ``(4) the types of projects funded, and number of affordable 
        housing dwelling units developed with, grants under subsection 
        (n); and''.

    (d) Funding.--Section 24(m) of the United States Housing Act of 1937 
(42 U.S.C. 1437v(m)) is amended by adding at the end the following:
            ``(3) Set-aside for main street housing grants.--Of the 
        amount appropriated pursuant to paragraph (1) for any fiscal 
        year, the Secretary shall provide up to 5 percent for use only 
        for grants under subsection (n).''.

               TITLE V--COMMUNITY DEVELOPMENT BLOCK GRANTS

SEC. 501. FUNDING FOR INSULAR AREAS.

    (a) Definition of Insular Areas.--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:
            ``(24) The term `insular area' means each of Guam, the 
        Northern Mariana Islands, the Virgin Islands, and American 
        Samoa.''.

    (b) Definition of Unit of General Government.--The first sentence of 
section 102(a)(1) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5302(a)(1)) is amended--
            (1) by inserting ``and'' after ``Secretary;''; and
            (2) by striking ``; and the Trust Territory of the Pacific 
        Islands''.

[[Page 117 STAT. 2697]]

    (c) Statement of Activities and Review.--Section 104 of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5304) is amended--
            (1) in subsection (a)(1)--
                    (A) in the first sentence--
                          (i) by striking ``or'' after ``State,''; and
                          (ii) by inserting ``or under section 106(a)(3) 
                      by any insular area,'' after ``government,''; and
                    (B) in the second sentence--
                          (i) by striking ``and in the case of'' and 
                      inserting a comma; and
                          (ii) by inserting ``and insular areas 
                      receiving grants pursuant to section 106(a)(3),'' 
                      after ``106(d)(2)(B),'';
            (2) in subsection (e)(1), by striking ``section 106(b) or 
        section 106(d)(2)(B)'' and inserting ``subsection (a)(3), (b), 
        or (d)(2)(B) of section 106''; and
            (3) in subsection (m)--
                    (A) in paragraph (1), by inserting ``(a)(2),'' after 
                ``under subsection''; and
                    (B) in paragraph (2), by striking ``government--'' 
                and inserting ``government other than an insular area--
                ''.

    (d) Allocation and Distribution of Funds.--Section 106(a) of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5306(a)) is 
amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking ``an appropriation Act'' and 
                inserting ``appropriation Acts''; and
                    (B) by striking ``in any year'' and inserting ``for 
                such fiscal year'';
            (2) in paragraph (2), by inserting ``under paragraph (1) and 
        after reserving such amounts for insular areas under paragraph 
        (2)'' after ``tribes'';
            (3) in paragraph (3), by striking ``paragraphs (1) and (2)'' 
        and inserting ``paragraphs (1), (2), and (3)'';
            (4) by redesignating paragraphs (2) and (3) (as so amended) 
        as paragraphs (3) and (4); and
            (5) by inserting after paragraph (1) the following:

    ``(2) For each fiscal year, of the amount approved in appropriation 
Acts under section 103 for grants for such fiscal year (excluding the 
amounts provided for use in accordance with section 107), the Secretary 
shall reserve for grants to insular areas $7,000,000. The Secretary 
shall provide for distribution of amounts under this paragraph to 
insular areas on the basis of the ratio of the population of each 
insular area to the population of all insular areas. In determining the 
distribution of amounts to insular areas, the Secretary may also include 
other statistical criteria as data become available from the Bureau of 
the Census, but only if such criteria are contained in a regulation 
promulgated by the Secretary after notice and public comment.''.
    (e) Conforming Amendment.--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 ``paragraphs (1) and (2)'' and 
inserting ``paragraphs (1), (2), and (3)''.
    (f) Special Purpose Grants.--Section 107 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking subparagraph (A); and

[[Page 117 STAT. 2698]]

                    (B) by redesignating subparagraphs (B) through (H) 
                as subparagraphs (A) through (G), respectively; and
            (2) in subsection (b)--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) through (7) as 
                paragraphs (1) through (6), respectively.

    (g) Regulations.--The <<NOTE: Effective date. 42 USC 5302 
note.>> Secretary of Housing and Urban Development shall issue 
regulations to carry out the amendments made by this section, which 
shall take effect not later than the expiration of the 90-day period 
beginning on the date of the enactment of this Act.

    Approved December 16, 2003.

LEGISLATIVE HISTORY--S. 811 (H.R. 1276) (H.R. 1614):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 108-164 accompanying H.R. 1276 and 108-165 
accompanying H.R. 1614 (both from Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 149 (2003):
            Nov. 24, considered and passed Senate.
            Dec. 8, considered and passed House.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
            Dec. 16, Presidential remarks.

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