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104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-353
_______________________________________________________________________


 
   MAKING APPROPRIATIONS FOR THE DEPARTMENTS OF VETERANS AFFAIRS AND 
  HOUSING AND URBAN DEVELOPMENT, AND FOR SUNDRY INDEPENDENT AGENCIES, 
  BOARDS, COMMISSIONS, CORPORATIONS, AND OFFICES FOR THE FISCAL YEAR 
           ENDING SEPTEMBER 30, 1996, AND FOR OTHER PURPOSES

                                _______


               November 17, 1995.--Ordered to be printed

_______________________________________________________________________


 Mr. Lewis of California, from the committee of conference, submitted 
                             the following

                           CONFERENCE REPORT

                        [To accompany H.R. 2099]

      The committee on conference on the disagreeing votes of 
the two Houses on the amendments of the Senate to the bill 
(H.R. 2099) ``making appropriations for the Department of 
Veterans Affairs and Housing and Urban Development, and for 
sundry independent agencies, boards, commissions, corporations, 
and offices for the fiscal year ending September 30, 1996, and 
for other purposes,'' having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the Senate recede from its amendments numbered 1, 2, 
3, 5, 12, 14, 20, 24, 43, 62, 67, 75, 82, 86, 87, 89, 90, 91, 
92, 98, 111, 112, and 116.
      That the House recede from its disagreement to the 
amendments of the Senate numbered 6, 7, 10, 11, 17, 19, 21, 22, 
26, 27, 28, 29, 30, 34, 35, 38, 39, 40, 42, 44, 45, 46, 47, 49, 
50, 51, 52, 53, 54, 55, 56, 57, 59, 60, 61, 64, 69, 73, 78, 79, 
84, 85, 88, 93, 95, 96, 97, 99, 100, 101, 103, 106, 107, 108, 
113, and 115, and agree to the same.
      Amendment numbered 4:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 4, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$16,564,000,000; and the Senate agree to the same.
      Amendment numbered 8:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 8, and agree to the same with 
an amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert: $848,143,000: Provided, That of the amount 
appropriated and any other funds made available from any other 
source for activities funded under this heading, except 
reimbursements, not to exceed $214,109,000 shall be available 
for General Administration; including not to exceed (1) 
$2,450,000 for personal compensation and benefits and $50,000 
for travel in the Office of the Secretary, (2) $4,392,000 for 
personnel compensation and benefits and $75,000 for travel in 
the Office of the Assistant Secretary for Policy and Planning, 
(3) $1,980,000 for personnel compensation and benefits and 
$33,000 for travel in the Office of the Assistant Secretary for 
Congressional Affairs, and (4) $3,500,000 for personnel 
compensation and benefits and $100,000 for travel in the Office 
of the Assistant Secretary for Public and Intergovernmental 
Affairs: Provided further, That during fiscal year 1996, 
notwithstanding any other provision of law, the number of 
individuals employed by the Department of Veterans Affairs (1) 
in other than ``career appointee'' positions in the Senior 
Executive Service shall not exceed 6, and (2) in schedule C 
positions shall not exceed 11: Provided further, That not to 
exceed $6,000,000 of the amount appropriated shall be available 
for administrative expenses to carry out the direct and 
guaranteed loan program under the Loan Guaranty Program 
Account; and the Senate agree to the same.
      Amendment numbered 9:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 9, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$136,155,000; and the Senate agree to the same.
      Amendment numbered 13:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 13, and agree to the same with 
an amendment, as follows:
      Delete the matter proposed by said amendment and on page 
16 of the House engrossed bill, H.R. 2099, delete the language 
on lines 9-18; and the Senate agree to the same.
      Amendment numbered 15:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 15, and agree to the same with 
an amendment, as follows:
      In lieu of the sum named in said amendment, insert: 
$4,500,000; and the Senate agree to the same.
      Amendment numbered 16:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 16, and agree to the same with 
an amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:
      For assistance under the United States Housing Act of 
1937, as amended (``the Act'' herein) (42 U.S.C. 1437), not 
otherwise provided for, $10,155,795,000, to remain available 
until expended: Provided, That of the total amount provided 
under this head, $160,000,000 shall be for the development or 
acquisition cost of public housing for Indian families, 
including amounts for housing under the mutual help 
homeownership opportunity program under section 202 of the Act 
(42 U.S.C. 1437bb): Provided further, That of the total amount 
provided under this head, $2,500,000,000 shall be for 
modernization of existing public housing projects pursuant to 
section 14 of the Act (42 U.S.C. 1437l), including up to 
$20,000,000 for the inspection of public housing units, 
contract expertise, and training and technical assistance, 
directly or indirectly, under grants, contracts, or cooperative 
agreements, to assist in the oversight and management of public 
and Indian housing (whether or not the housing is being 
modernized with assistance under this proviso) or tenant-based 
assistance, including, but not limited to, an annual resident 
survey, data collection and analysis, training and technical 
assistance by or to officials and employees of the Department 
and of public housing agencies and to residents in connection 
with the public and Indian housing program: Provided further, 
That of the total amount provided under this head, $400,000,000 
shall be for rental subsidy contracts under the section 8 
existing housing certificate program and the housing voucher 
program under section 8 of the Act, except that such amounts 
shall be used only for units necessary to provide housing 
assistance for residents to be relocated from existing 
federally subsidized or assisted housing, for replacement 
housing for units demolished or disposed of (including units to 
be disposed of pursuant to a homeownership program under 
section 5(h) or title III of the United States Housing Act of 
1937) from the public housing inventory, for funds related to 
litigation settlements, for the conversion of section 23 
projects to assistance under section 8, for public housing 
agencies to implement allocation plans approved by the 
Secretary for designated housing, for funds to carry out the 
family unification program, and for the relocation of witnesses 
in connection with efforts to combat crime in public and 
assisted housing pursuant to a request from a law enforcement 
or prosecution agency: Provided further, That of the total 
amount provided under this head, $4,350,862,000 shall be for 
assistance under the United States Housing Act of 1937 (42 
U.S.C. 1437) for use in connection with expiring or terminating 
section 8 subsidy contracts, such amount shall be merged with 
all remaining obligated and unobligated balances heretofore 
appropriated under the heading ``Renewal of expiring section 8 
subsidy contracts'': Provided further, That notwithstanding any 
other provision of law, assistance reserved under the two 
preceding provisos may be used in connection with any provision 
of Federal law enacted in this Act or after the enactment of 
this Act that authorizes the use of rental assistance amounts 
in connection with such terminated or expired contracts: 
Provided further, That the Secretary may determine not to apply 
section 8(o)(6)(B) of the Act to renewals of housing vouchers 
during fiscal year 1996: Provided further, That of the total 
amount provided under this head, $610,575,000 shall be for 
amendments to section 8 contracts other than contracts for 
projects developed under section 202 of the Housing Act of 
1959, as amended; and $261,000,000 shall be for section 8 
assistance and rehabilitation grants for property disposition: 
Provided further, That during fiscal year 1996, the Secretary 
of Housing and Urban Development may manage and dispose of 
multifamily properties owned by the Secretary and multifamily 
mortgages held by the Secretary without regard to any other 
provision of law: Provided further, That 50 per centum of the 
amounts of budget authority, or in lieu thereof 50 per centum 
of the cash amounts associated with such budget authority, that 
are recaptured from projects described in section 1012(a) of 
the Stewart B. McKinney Homeless Assistance Amendments Act of 
1988 (Public Law 100-628, 102 Stat. 3224, 3268) shall be 
rescinded, or in the case of cash, shall be remitted to the 
Treasury, and such amounts of budget authority or cash 
recaptured and not rescinded or remitted to the Treasury shall 
be used by State housing finance agencies or local governments 
or local housing agencies with projects approved by the 
Secretary of Housing and Urban Development for which settlement 
occurred after January 1, 1992, in accordance with such 
section: Provided further, That of the total amount provided 
under this head, $171,000,000 shall be for housing 
opportunities for persons with AIDS under title VIII, subtitle 
D of the Cranston-Gonzalez National Affordable Housing Act; and 
$65,000,000 shall be for the lead-based paint hazard reduction 
program as authorized under sections 1011 and 1053 of the 
Residential Lead-Based Hazard Reduction Act of 1992: Provided 
further, That the Secretary may make up to $5,000,000 of any 
amount recaptured in this account available for the development 
of performance and financial systems.
      Of the total amount provided under this head, 
$624,000,000, plus amounts recaptured from interest reduction 
payment contracts for section 236 projects whose owners prepay 
their mortgages during fiscal year 1996 (which amounts shall be 
transferred and merged with this account), shall be for use in 
conjunction with properties that are eligible for assistance 
under the Low Income Housing Preservation and Resident 
Homeownership Act of 1990 (LIHPRHA) or the Emergency Low-Income 
Housing Preservation Act of 1987 (ELIHPA): Provided, That prior 
to July 1, 1996, funding to carry out plans of action shall be 
limited to sales of projects to non-profit organizations, 
tenant-sponsored organizations, and other priority purchasers: 
Provided further, That of the amount made available by this 
paragraph, up to $10,000,000 shall be available for 
preservation technical assistance grants pursuant to section 
253 of the Housing and Community Development Act of 1987, as 
amended: Provided further, That with respect to amounts made 
available by this paragraph, after July 1, 1996, if the 
Secretary determines that the demand for funding may exceed 
amounts available for such funding, the Secretary (1) may 
determine priorities for distributing available funds, 
including giving priority funding to tenants displaced due to 
mortgage prepayment and to projects that have not yet been 
funded but which have approved plans of action; and (2) may 
impose a temporary moratorium on applications by potential 
recipients of such funding: Provided further, That an owner of 
eligible low-income housing may prepay the mortgage or request 
voluntary termination of a mortgage insurance contract, so long 
as said owner agrees not to raise rents for sixty days after 
such prepayment: Provided further, That an owner of eligible 
low-income housing who has not timely filed a second notice 
under section 216(d) prior to the effective date of this Act 
may file such notice by March 1, 1996: Provided further, That 
such developments have been determined to have preservation 
equity at least equal to the lesser of $5,000 per unit or 
$500,000 per project or the equivalent of eight times the most 
recently published fair market rent for the area in which the 
project is located as the appropriate unit size for all of the 
units in the eligible project: Provided further, That the 
Secretary may modify the regulatory agreement to permit owners 
and priority purchasers to retain rental income in excess of 
the basic rental charge in projects assisted under section 236 
of the National Housing Act, for the purpose of preserving the 
low and moderate income character of the housing: Provided 
further, That the Secretary may give priority to funding and 
processing the following projects provided that the funding is 
obligated not later than August 1, 1996: (1) projects with 
approved plans of action to retain the housing that file a 
modified plan of action no later than July 1, 1996 to transfer 
the housing; (2) projects with approved plans of action that 
are subject to a repayment or settlement that was executed 
between the owner and the Secretary prior to September 1, 1995; 
(3) projects for which submissions were delayed as a result of 
their location in areas that were designated as a federal 
disaster area in a Presidential Disaster Declaration; and (4) 
projects whose processing was, in fact or in practical effect, 
suspended, deferred, or interrupted for a period of twelve 
months or more because of differing interpretations, by the 
Secretary and an owner or by the Secretary and a state or local 
rent regulatory agency, concerning the timing of filing 
eligibility or the effect of a presumptively applicable state 
or local rent control law or regulation on the determination of 
preservation value under section 213 of LIHPRHA, as amended, if 
the owner of such project filed notice of intent to extend the 
low-income affordability restrictions of the housing, or 
transfer to a qualified purchaser who would extend such 
restrictions, on or before November 1, 1993: Provided further, 
That eligible low-income housing shall include properties 
meeting the requirements of this paragraph with mortgages that 
are held by a State agency as a result of a sale by the 
Secretary without insurance, which immediately before the sale 
would have been eligible low-income housing under LIHPRHA: 
Provided further, That notwithstanding any other provision of 
law, subject to the availability of appropriated funds, each 
unassisted low-income family residing in the housing on the 
date of prepayment or voluntary termination, and whose rent, as 
a result of a rent increase occurring no later than one year 
after the date of the prepayment, exceeds 30 percent of 
adjusted income, shall be offered tenant-based assistance in 
accordance with section 8 or any successor program, under which 
the family shall pay no less for rent than it paid on such 
date: Provided further, That any family receiving tenant-based 
assistance under the preceding proviso may elect (1) to remain 
in the unit of the housing and if the rent exceeds the fair 
market rent or payment standard, as applicable, the rent shall 
be deemed to be the applicable standard, so long as the 
administering public housing agency finds that the rent is 
reasonable in comparison with rents charged for comparable 
unassisted housing units in the market or (2) to move from the 
housing and the rent will be subject to the fair market rent of 
the payment standard, as applicable, under existing program 
rules and procedures: Provided further, That up to $10,000,000 
of the amount made available by this paragraph may be used at 
the discretion of the Secretary to reimburse owners of eligible 
properties for which plans of action were submitted prior to 
the effective date of this Act, but were not executed for lack 
of available funds, with such reimbursement available only for 
documented costs directly applicable to the preparation of the 
plan of action as determined by the Secretary, and shall be 
made available on terms and conditions to be established by the 
Secretary: Provided further, That, notwithstanding any other 
provision of law, effective October 1, 1996, the Secretary 
shall suspend further processing of preservation applications 
which do not have approved plans of action.
      Of the total amount provided under this head, 
$780,190,000 shall be for capital advances, including 
amendments to capital advance contracts, for housing for the 
elderly, as authorized by section 202 of the Housing Act of 
1959, as amended, and for project rental assistance, and 
amendments to contracts for project rental assistance, for 
supportive housing for the elderly under section 202(c)(2) of 
the Housing Act of 1959; and $233,168,000 shall be for capital 
advances, including amendments to capital advance contracts, 
for supportive housing for persons with disabilities, as 
authorized by section 811 of the Cranston-Gonzalez National 
Affordable Housing Act; and for project rental assistance, and 
amendments to contracts for project rental assistance, for 
supportive housing for persons with disabilities as authorized 
by section 811 of the Cranston-Gonzalez National Affordable 
Housing Act: Provided, That the Secretary may designate up to 
25 percent of the amounts earmarked under this paragraph for 
section 811 of the Cranston-Gonzalez National Affordable 
Housing Act for tenant-based assistance, as authorized under 
that section which is five-years in duration: Provided further, 
That the Secretary may waive any provision of section 202 of 
the Housing Act of 1959 and section 811 of the National 
Affordable Housing Act (including the provisions governing the 
terms and conditions of project rental assistance) that the 
Secretary determines is not necessary to achieve the objectives 
of these programs, or that otherwise impedes the ability to 
develop, operate or administer projects assisted under these 
programs, and may make provision for alternative conditions or 
terms where appropriate.


public housing demolition, site revitalization, and replacement housing 
                                 grants


      For grants to public housing agencies for the purposes of 
enabling the demolition of obsolete public housing projects or 
portions thereof, the revitalization (where appropriate) of 
sites (including remaining public housing units) on which such 
projects are located, replacement housing which will avoid or 
lessen concentrations of very low-income families, and tenant-
based assistance in accordance with section 8 of the United 
States Housing Act of 1937 for the purpose of providing 
replacement housing and assisting tenants to be displaced by 
the demolition, $280,000,000, to remain available until 
expended: Provided, That the Secretary of Housing and Urban 
Development shall award such funds to public housing agencies 
by a competition which includes among other relevant criteria 
the local and national impact of the proposed demolition and 
revitalization activities and the extent to which the public 
housing agency could undertake such activities without the 
additional assistance to be provided hereunder: Provided 
further, That eligible expenditures hereunder shall be those 
expenditures eligible under section 8 and section 14 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f and l): 
Provided further, That the Secretary may impose such conditions 
and requirements as the Secretary deems appropriate to 
effectuate the purposes of this paragraph: Provided further, 
That the Secretary may require an agency selected to receive 
funding to make arrangements satisfactory to the Secretary for 
use of an entity other than the agency to carry out this 
program where the Secretary determines that such action will 
help to effectuate the purpose of this paragraph: Provided 
further, That in the event an agency selected to receive 
funding does not proceed expeditiously as determined by the 
Secretary, the Secretary shall withdraw any funding made 
available pursuant to this paragraph and that has not been 
obligated by the agency and distribute such funds to one or 
more other eligible agencies, or to other entities capable of 
proceeding expeditiously in the same locality with the original 
program: Provided further, That of the foregoing $280,000,000, 
the Secretary may use up to .67 per centum for technical 
assistance, to be provided directly or indirectly by grants, 
contracts or cooperative agreements, including training and 
cost of necessary travel for participants in such training, by 
or to officials and employees of the Department and of public 
housing agencies and to residents: Provided further, That any 
replacement housing provided with assistance under this head 
shall be subject to section 18(f) of the United States Housing 
Act of 1937, as amended by section 201(b)(2) of this Act.
      And the Senate agree to the same.
      Amendment numbered 18:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 18, and agree to the same with 
an amendment, as follows:
      In lieu of the matter proposed by said amendment, insert:


             drug elimination grants for low-income housing


      For grants to public and Indian housing agencies for use 
in eliminating crime in public housing projects authorized by 
42 U.S.C. 11901-11908, for grants for federally assisted low-
income housing authorized by 42 U.S.C. 11909, and for drug 
information clearinghouse services authorized by 42 U.S.C. 
11921-11925, $290,000,000, to remain available until expended, 
of which $10,000,000 shall be for grants, technical assistance, 
contracts and other assistance training, program assessment, 
and execution for or on behalf of public housing agencies and 
resident organizations (including the cost of necessary travel 
for participants in such training) and of which $2,500,000 
shall be used in connection with efforts to combat violent 
crime in public and assisted housing under the Operation Safe 
Home program administered by the Inspector General of the 
Department of Housing and Urban Development: Provided, That the 
term ``drug-related crime'', as defined in 42 U.S.C. 11905(2), 
shall also include other types of crime as determined by the 
Secretary.
      And the Senate agree to the same.
      Amendment numbered 23:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 23, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$823,000,000; and the Senate agree to the same.
      Amendment numbered 25:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 25, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$50,000,000; and the Senate agree to the same.
      Amendment numbered 31:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 31, and agree to the same with 
an amendment, as follows:
      In lieu of the matter proposed by said amendment, insert:
      Of the amount provided under this heading, the Secretary 
of Housing and Urban Development may use up to $53,000,000 for 
grants to public housing agencies (including Indian housing 
authorities), nonprofit corporations, and other appropriate 
entities for a supportive services program to assist residents 
of public and assisted housing, former residents of such 
housing receiving tenant-based assistance under section 8 of 
such Act (42 U.S.C. 1437f), and other low-income families and 
individuals to become self-sufficient: Provided, That the 
program shall provide supportive services, principally for the 
benefit of public housing residents, to the elderly and the 
disabled, and to families with children where the head of 
household would benefit from the receipt of supportive services 
and is working, seeking work, or is preparing for work by 
participating in job training or educational programs: Provided 
further, That the supportive services shall include congregate 
services for the elderly and disabled, service coordinators, 
and coordinated educational, training, and other supportive 
services, including academic skills training, job search 
assistance, assistance related to retaining employment, 
vocational and entrepreneurship development and support 
programs, transportation, and child care: Provided further, 
That the Secretary shall require applications to demonstrate 
firm commitments of funding or services from other sources: 
Provided further, That the Secretary shall select public and 
Indian housing agencies to receive assistance under this head 
on a competitive basis, taking into account the quality of the 
proposed program (including any innovative approaches), the 
extent of the proposed coordination of supportive services, the 
extent of commitments of funding or services from other 
sources, the extent to which the proposed program includes 
reasonably achievable, quantifiable goals for measuring 
performance under the program over a three-year period, the 
extent of success an agency has had in carrying out other 
comparable initiatives, and other appropriate criteria 
established by the Secretary.
      Of the amount made available under this heading, 
notwithstanding any other provision of law, $12,000,000 shall 
be available for contracts, grants, and other assistance, other 
than loans, not otherwise provided for, for providing 
counseling and advice to tenants and homeowners both current 
and prospective, with respect to property maintenance, 
financial management, and such other matters as may be 
appropriate to assist them in improving their housing 
conditions and meeting the responsibilities of tenancy or 
homeownership, including provisions for training and for 
support of voluntary agencies and services as authorized by 
section 106 of the Housing and Urban Development Act of 1968, 
as amended, notwithstanding section 106(c)(9) and section 
106(d)(13) of such Act.
      Of the amount made available under this heading, 
notwithstanding any other provision of law, $15,000,000 shall 
be available for the tenant opportunity program.
      Of the amount made available under this heading, 
notwithstanding any other provision of law, $20,000,000 shall 
be available for youthbuild program activities authorized by 
subtitle D of title IV of the Cranston-Gonzalez National 
Affordable Housing Act, as amended, and shall be an eligible 
activity with respect to any funds made available under this 
heading.
      And the Senate agree to the same.
      Amendment numbered 32:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 32, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert 
$31,750,000; and the Senate agree to the same.
      Amendment numbered 33:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 33, and agree to the same with 
an amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert: $1,500,000,000: Provided further, That the 
Secretary of Housing and Urban Development may make guarantees 
not to exceed the immediately foregoing amount notwithstanding 
the aggregate limitation on guarantees set forth in section 
108(k) of the Housing and Community Development Act of 1974; 
and the Senate agree to the same.
      Amendment numbered 36:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 36, and agree to the same with 
an amendment, as follows:
      Restore the matter stricken by said amendment, amended to 
read as follows:


                   fair housing and equal opportunity


                        fair housing activities


      For contracts, grants, and other assistance, not 
otherwise provided for, as authorized by title VIII of the 
Civil Rights Act of 1968, as amended by the Fair Housing 
Amendments Act of 1988, and for contracts with qualified fair 
housing enforcement organizations, as authorized by section 561 
of the Housing and Community Development Act of 1987, as 
amended by the Housing and Community Development Act of 1992, 
$30,000,000, to remain available until September 30, 1997.
      And the Senate agree to the same.
      Amendment numbered 37:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 37, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$962,558,000; and the Senate agree to the same.
      Amendment numbered 41:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 41, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$47,850,000; and the Senate agree to the same.
      Amendment numbered 48:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 48, and agree to the same with 
an amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:
      For the cost of guaranteed loans, as authorized by 
sections 238 and 519 of the National Housing Act (12 U.S.C. 
1715z-3 and 1735c), including the cost of modifying such loans, 
$85,000,000, to remain available until expended: Provided, That 
such costs shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, 
That these funds are available to subsidize total; and the 
Senate agree to the same.
      Amendment numbered 58:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 58, and agree to the same with 
an amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:

SEC. 201. EXTEND ADMINISTRATIVE PROVISIONS FROM THE RESCISSION ACT.

      (a) Public and Indian Housing Modernization.--
            (1) Expansion of use of modernization funding.--
        Subsection 14(q) of the United States Housing Act of 
        1937 is amended to read as follows:
      ``(q)(1) In addition to the purposes enumerated in 
subsections (a) and (b), a public housing agency may use 
modernization assistance provided under section 14, and 
development assistance provided under section 5(a) that was not 
allocated, as determined by the secretary, for priority 
replacement housing, for any eligible activity authorized by 
this section, by section 5, or by applicable Appropriations 
Acts for a public housing agency, including the demolition, 
rehabilitation, revitalization, and replacement of existing 
units and projects and, for up to 10 percent of its allocation 
of such funds in any fiscal year, for any operating subsidy 
purpose authorized in section 9. Except for assistance used for 
operating subsidy purposes under the preceding sentence, 
assistance provided to a public housing agency under this 
section shall principally be used for the physical improvement 
or replacement of public housing and for associated management 
improvements, except as otherwise approved by the Secretary. 
Public housing units assisted under this paragraph shall be 
eligible for operating subsidies, unless the Secretary 
determines that such units or projects have not received 
sufficient assistance under this Act or do not meet other 
requirements of this Act.
      ``(2) A public housing agency may provide assistance to 
developments that include units for other than very low-income 
families (`mixed income developments') in the form of a grant, 
loan, operating assistance, or other form of investment which 
may be made to--
            (A) a partnership, a limited liability company, or 
        other legal entity in which the public housing agency 
        or its affiliate is a general partner, managing member, 
        or otherwise participates in the activities of such 
        entity; or
            (B) any entity which grants to the public housing 
        agency the option to purchase the development within 20 
        years after initial occupancy in accordance with 
        section 42(i)(7) of the Internal Revenue Code of 1986, 
        as amended. Units shall be made available in such 
        developments for periods of not less than 20 years, by 
        master contract or by individual lease, for occupancy 
        by low-income families referred from time to time by 
        the public housing agency. The number of such units 
        shall be:
                    (i) in the same proportion to the total 
                number of units in such development that the 
                total financial commitment provided by the 
                public housing agency bears to the value of the 
                total financial commitment in the development, 
                or
                    (ii) not be less than the number of units 
                that could have been developed under the 
                conventional public housing program with the 
                assistance involved, or
                    (iii) as may otherwise be approved by the 
                Secretary.
      ``(3) A mixed income development may elect to have all 
units subject only to the applicable local real estate taxes, 
notwithstanding that the low-income units assisted by public 
housing funds would otherwise be subject to section 6(d) of the 
Housing Act of 1937.
      ``(4) If any entity that owns or operates a mixed-income 
project under this subsection enters into a contract with a 
public housing agency, the terms of which obligate the entity 
to operate and maintain a specified number of units in the 
project as public housing units in accordance with the 
requirements of this Act for the period required by law, such 
contractual terms may provide that, if, as a result of a 
reduction in appropriations under section 9, or any other 
change in applicable law, the public housing agency is unable 
to fulfill its contractual obligations with respect to those 
public housing units, that entity may deviate, under procedures 
and requirements developed through regulations by the 
Secretary, from otherwise applicable restrictions under this 
Act regarding rents, income eligibility, and other areas of 
public housing management with respect to a portion or all of 
those public housing units, to the extent necessary to preserve 
the viability of those units while maintaining the low-income 
character of the units, to the maximum extent practicable.''.
            (2) Extension of authority.--Section 1001(b) of the 
        Emergency Supplemental Appropriations for Additional 
        Disaster Assistance, for Anti-Terrorism Initiatives, 
        for Assistance in the Recovery from the Tragedy that 
        Occurred at Oklahoma City, and Rescissions Act, 1995 
        (109 Stat. 235), is amended to read as follows:
      ``(b) Applicability.--Section 14(q) of the United States 
Housing Act of 1937, as added by subsection (a) of this 
section, shall be effective only with respect to assistance 
provided from funds made available for fiscal year 1996 or any 
preceding fiscal year.''.
            (3) Applicability.--In accordance with section 
        201(b)(2) of the United States Housing Act of 1937, the 
        amendment made by this subsection shall apply to public 
        housing developed or operated pursuant to contract 
        between the Secretary of Housing and Urban Development 
        and an Indian housing authority.
      (b) One-for-One Replacement of Public and Indian 
Housing.--
            (1) Extended authority.--Section 1002(d) of Public 
        Law 104-19 is amended to read as follows:
      ``(d) Subsections (a), (b), and (c) shall be effective 
for applications for the demolition, disposition, or conversion 
to homeownership of public housing approved by the Secretary, 
and other consolidation and relocation activities of public 
housing agencies undertaken, on, before, or after September 30, 
1995 and before September 30, 1996.''.
            (2) Section 18(f) of the United States Housing Act 
        of 1937 is amended by adding at the end the following 
        new sentence:

``No one may rely on the preceding sentence as the basis for 
reconsidering a final order of a court issued, or a settlement 
approved by, a court.''.
            (3) Applicability.--In accordance with section 
        201(b)(2) of the United States Housing Act of 1937, the 
        amendments made by this subsection and by sections 1002 
        (a), (b), and (c) of Public Law 104-19 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.

SEC. 202. PUBLIC AND ASSISTED HOUSING RENTS, INCOME ADJUSTMENTS, AND 
                    PREFERENCES.

      (a) Minimum Rents.--Notwithstanding sections 3(a) and 
8(o)(2) of the United States Housing Act of 1937, as amended, 
effective for fiscal year 1996 and no later than October 30, 
1995--
            (1) public housing agencies shall require each 
        family who is assisted under the certificate or 
        moderate rehabilitation program under section 8 of such 
        Act to pay a minimum monthly rent of not less than $25, 
        and may require a minimum monthly rent of up to $50;
            (2) public housing agencies shall reduce the 
        monthly assistance payment on behalf of each family who 
        is assisted under the voucher program under section 8 
        of such Act so that the family pays a minimum monthly 
        rent of not less than $25, and may require a minimum 
        monthly rent of up to $50;
            (3) owners of housing assisted under other programs 
        for rental assistance under section 8 of such Act shall 
        require each family who is assisted under such program 
        to pay a minimum monthly rent of not less than $25 for 
        the unit, and may require a minimum monthly rent of up 
        to $50; and
            (4) public housing agencies shall require each 
        family who is assisted under the public housing program 
        (including public housing for Indian families) of such 
        Act to pay a minimum monthly rent of not less than $25, 
        and may require a minimum monthly rent of up to $50.
      (b) Establishment of Ceiling Rents.--
            (1) Section 3(a)(2) of the United States Housing 
        Act of 1937 is amended to read as follows:
      ``(2) Notwithstanding paragraph (1), a public housing 
agency may--
            ``(A) adopt ceiling rents that reflect the 
        reasonable market value of the housing, but that are 
        not less than the monthly costs--
                    ``(i) operate the housing of the agency; 
                and
                    ``(ii) to make a deposit to a replacement 
                reserve (in the sole discretion of the public 
                housing agency); and
            ``(B) allow families to pay ceiling rents referred 
        to in subparagraph (A), unless, with respect to any 
        family, the ceiling rent established under this 
        paragraph would exceed the amount payable as rent by 
        that family under paragraph (1).''.
            (2) Regulations.--
                    (A) In general.--The Secretary shall, by 
                regulation, after notice and an opportunity for 
                public comment, establish such requirements as 
                may be necessary to carry out section 
                3(a)(2)(A) of the United States Housing Act of 
                1937, as amended by paragraph (1).
                    (B) Transition rule.--Prior to the issuance 
                of final regulations under paragraph (1), a 
                public housing agency may implement ceiling 
                rents, which shall be not less than the monthly 
                costs to operate the housing of the agency 
                and--
                            (i) determined in accordance with 
                        section 3(a)(2)(A) of the United States 
                        Housing Act of 1937, as that section 
                        existed on the day before enactment of 
                        this Act;
                            (ii) equal to the 95th percentile 
                        of the rent paid for a unit of 
                        comparable size by tenants in the same 
                        public housing project or a group of 
                        comparable projects totaling 50 units 
                        or more; or
                            (iii) equal to the fair market rent 
                        for the area in which the unit is 
                        located.
      (c) Definition of Adjusted Income.--Section 3(b)(5) of 
the United States Housing Act of 1937 is amended--
            (1) at the end of subparagraph (F), by striking 
        ``and'';
            (2) at the end of subparagraph (G), by striking the 
        period and inserting ``; and''; and
            (3) by inserting after subparagraph (G) the 
        following:
      ``(H) for public housing, any other adjustments to earned 
income established by the public housing agency. If a public 
housing agency adopts other adjustments to income pursuant to 
subparagraph (H), the Secretary shall not take into account any 
reduction of or increase in the public housing agency's per 
unit dwelling rental income resulting from those adjustments 
when calculating the contributions under section 9 for the 
public housing agency for the operation of the public 
housing.''.
      (d) Repeal of Federal Preferences.--
            (1) Public housing.--
            Section 6(c)(4)(A) of the United States Housing Act 
        of 1937 (42 U.S.C. 1437d(c)(4)(A)) is amended to read 
        as follows:
          ``(A) the establishment, after public notice and an 
        opportunity for public comment, of a written system of 
        preferences for admission to public housing, if any, 
        that is not inconsistent with the comprehensive housing 
        affordability strategy under title I of the Cranston-
        Gonzalez National Affordable Housing Act;''.
            (2) Section 8 existing and moderate 
        rehabilitation.--
            Section 8(d)(1)(A) of the United States Housing Act 
        of 1937 (42 U.S.C. 1437f(d)(1)(A)) is amended to read 
        as follows:
            ``(A) the selection of tenants shall be the 
        function of the owner, subject to the provisions of the 
        annual contributions contract between the Secretary and 
        the agency, except that for the certificate and 
        moderate rehabilitation programs only, for the purpose 
        of selecting families to be assisted, the public 
        housing agency may establish, after public notice and 
        an opportunity for public comment, a written system of 
        preferences for selection that is not inconsistent with 
        the comprehensive housing affordability strategy under 
        title I of the Cranston-Gonzalez National Affordable 
        Housing Act;''.
            (3) Section 8 voucher program.--Section 8(o)(3)(B) 
        of the United States Housing Act of 1937 (42 U.S.C. 
        1437f(o)(3)(B)) is amended to read as follows:
            ``(B) For the purpose of selecting families to be 
        assisted under this subsection, the public housing 
        agency may establish, after public notice and an 
        opportunity for public comment, a written system of 
        preferences for selection that is not inconsistent with 
        the comprehensive housing affordability strategy under 
        title I of the Cranston-Gonzalez National Affordable 
        Housing Act.''.
            (4) Section 8 new construction and substantial 
        rehabilitation.--
                    (A) Repeal.--Section 545(c) of the 
                Cranston-Gonzalez National Affordable Housing 
                Act (42 U.S.C. 1437f note) is amended to read 
                as follows:
      ``(c) [Reserved.]''.
                    (B) Prohibition.--Notwithstanding any other 
                provision of law, no Federal tenant selection 
                preferences shall apply with respect to--
                            (i) housing constructed or 
                        substantially rehabilitated pursuant to 
                        assistance provided under section 
                        8(b)(2) of the United States Housing 
                        Act of 1937 (as such section existed on 
                        the day before October 1, 1983); or
                            (ii) projects financed under 
                        section 202 of the Housing Act of 1959 
                        (as such section existed on the day 
                        before the date of enactment of the 
                        Cranston-Gonzalez National Affordable 
                        Housing Act).
            (5) Rent supplements.--Section 101(k) of the 
        Housing and Urban Development Act of 1965 (12 U.S.C. 
        1701s(k)) is amended to read as follows:
      ``(k) [Reserved.]''.
            (8) 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--
                            (i) in section 6(o), by striking 
                        ``preference rules specified in'' and 
                        inserting ``written system of 
                        preferences for selection established 
                        pursuant to'';
                            (ii) in section 7(a)(2), by 
                        striking ``according to the preferences 
                        for occupancy under'' and inserting 
                        ``in accordance with the written system 
                        of preferences for selection 
                        established pursuant to'';
                            (iii) in section 8(d)(2)(A), by 
                        striking the last sentence;
                            (iv) in section 8(d)(2)(H), by 
                        striking ``Notwithstanding subsection 
                        (d)(1)(A)(i), an'' and inserting 
                        ``An'';
                            (v) in section 16(c), in the second 
                        sentence, by striking ``the system of 
                        preferences established by the agency 
                        pursuant to section 6(c)(4)(A)(ii)'' 
                        and inserting ``the written system of 
                        preferences for selection established 
                        by the public housing agency pursuant 
                        to section 6(c)(4)(A)''; and
                            (vi) in section 24(e)--
                                    (I) by striking ``(e) 
                                Exceptions'' and all that 
                                follows through ``The Secretary 
                                may'' and inserting the 
                                following:
      ``(e) Exception to General Program Requirements.--The 
Secretary may''; and
                                    (II) by striking paragraph 
                                (2).
                    (B) Cranston-gonzalez national affordable 
                housing act.--Section 522(f)(6)(B) of the 
                Cranston-Gonzalez National Affordable Housing 
                Act (42 U.S.C. 12704 et seq.) is amended by 
                striking ``any preferences for such assistance 
                under section 8(d)(1)(A)(i)'' and inserting 
                ``the written system of preferences for 
                selection established pursuant to section 
                8(d)(1)(A)''.
                    (C) Housing and community development act 
                of 1992.--Section 655 of the Housing and 
                Community Development Act of 1992 (42 U.S.C. 
                13615) is amended by striking ``the 
                preferences'' and all that follows through the 
                period at the end and inserting ``any 
                preferences''.
                    (D) References in other law.--Any reference 
                in any Federal law other than any provision of 
                any law amended by paragraphs (1) through (5) 
                of this subsection to the preferences for 
                assistance under section 6(c)(4)(A)(i), 
                8(d)(1)(A)(i), or 8(o)(3)(B) of the United 
                States Housing Act of 1937 (as such sections 
                existed on the day before the date of enactment 
                of this Act) shall be considered to refer to 
                the written system of preferences for selection 
                established pursuant to section 6(c)(4)(A), 
                8(d)(1)(A), or 8(o)(3)(B), respectively, of the 
                United States Housing Act of 1937, as amended 
                by this section.
      (e) Applicability.--In accordance with section 201(b)(2) 
of the United States Housing Act of 1937, the amendments made 
by subsections (a), (b), (c), and (d) of this section shall 
also apply to public housing developed or operated pursuant to 
a contract between the Secretary of Housing and Urban 
Development and an Indian housing authority.
      (f) This section shall be effective upon the enactment of 
this Act and only for fiscal year 1996.

SEC. 203. CONVERSION OF CERTAIN PUBLIC HOUSING TO VOUCHERS.

      (a) Identification of Units.--
            (1) Each public housing agency shall identify any 
        public housing developments--
                    (A) that are on the same or contiguous 
                sites;
                    (B) that total more than--
                            (i) 300 dwelling units; or
                            (ii) in the case of high-rise 
                        family buildings or substantially 
                        vacant buildings, 300 dwelling units;
                    (C) that have a vacancy rate of at least 10 
                percent for dwelling units not in funded, on-
                schedule modernization programs;
                    (D) identified as distressed housing that 
                the public housing agency cannot assure the 
                long-term viability as public housing through 
                revitalization, density reduction, or 
                achievement of a broader range of household 
                income; and
                    (E) for which the estimated cost of 
                continued operation and modernization of the 
                developments as public housing exceeds the cost 
                of providing tenant-based assistance under 
                section 8 of the United States Housing Act of 
                1937 for all families in occupancy, based on 
                appropriate indicators of cost (such as the 
                percentage of total development cost required 
                for modernization).
      (b) Implementation and Enforcement.--
            (1) Standards for implementation.--The Secretary 
        shall establish standards to permit implementation of 
        this section in fiscal year 1996.
            (2) Consultation.--Each public housing agency shall 
        consult with the applicable public housing tenants and 
        the unit of general local government in identifying any 
        public housing developments under subsection (a).
            (3) Failure of PHA's to comply with subsection 
        (a).--Where the Secretary determines that--
                    (A) a public housing agency has failed 
                under subsection (a) to identify public housing 
                developments for removal from the inventory of 
                the agency in a timely manner;
                    (B) a public housing agency has failed to 
                identify one or more public housing 
                developments which the Secretary determines 
                should have been identified under subsection 
                (a); or
                    (C) one or more of the developments 
                identified by the public housing agency 
                pursuant to subsection (a) should not, in the 
                determination of the Secretary, have been 
                identified under that subsection;

        the Secretary may designate the developments to be 
        removed from the inventory of the public housing agency 
        pursuant to this section.
      (c) Removal of Units From the Inventories of Public 
Housing Agencies.--
            (1) Each public housing agency shall develop and 
        carry out a plan in conjunction with the Secretary for 
        the removal of public housing units identified under 
        subsection (a) or subsection (b)(3), over a period of 
        up to five years, from the inventory of the public 
        housing agency and the annual contributions contract. 
        The plan shall be approved by the relevant local 
        official as not inconsistent with the Comprehensive 
        Housing Affordability Strategy under title I of the 
        Housing and Community Development Act of 1992, 
        including a description of any disposition and 
        demolition plan for the public housing units.
            (2) The Secretary may extend the deadline in 
        paragraph (1) for up to an additional five years where 
        the Secretary makes a determination that the deadline 
        is impracticable.
            (3) The Secretary shall take appropriate actions to 
        ensure removal of developments identified under 
        subsection (a) or subsection (b)(3) from the inventory 
        of a public housing agency, if the public housing 
        agency fails to adequately develop a plan under 
        paragraph (1), or fails to adequately implement such 
        plan in accordance with the terms of the plan.
            (4) To the extent approved in appropriations, the 
        Secretary may establish requirements and provide 
        funding under the Urban Revitalization Demonstration 
        program for demolition and disposition of public 
        housing under this section.
            (5) Notwithstanding any other provision of law, if 
        a development is removed from the inventory of a public 
        housing agency and the annual contributions contract 
        pursuant to paragraph (1), the Secretary may authorize 
        or direct the transfer of--
                    (A) in the case of an agency receiving 
                assistance under the comprehensive improvement 
                assistance program, any amounts obligated by 
                the Secretary for the modernization of such 
                development pursuant to section 14 of the 
                United States Housing Act of 1937;
                    (B) in the case of an agency receiving 
                public and Indian housing modernization 
                assistance by formula pursuant to section 14 of 
                the United States Housing Act of 1937, any 
                amounts provided to the agency which are 
                attributable pursuant to the formula for 
                allocating such assistance to the development 
                removed from the inventory of that agency; and
                    (C) in the case of an agency receiving 
                assistance for the major reconstruction of 
                obsolete projects, any amounts obligated by the 
                Secretary for the major reconstruction of the 
                development pursuant to section 5 of such Act,

        to the tenant-based assistance program or appropriate 
        site revitalization of such agency.
            (6) Cessation of unnecessary spending.--
        Notwithstanding any other provision of law, if, in the 
        determination of the Secretary, a development meets or 
        is likely to meet the criteria set forth in subsection 
        (a), the Secretary may direct the public housing agency 
        to cease additional spending in connection with the 
        development, except to the extent that additional 
        spending is necessary to ensure decent, safe, and 
        sanitary housing until the Secretary determines or 
        approves an appropriate course of action with respect 
        to such development under this section.
      (d) Conversion to Tenant-Based Assistance.--
            (1) The Secretary shall make authority available to 
        a public housing agency to provide tenant-based 
        assistance pursuant to section 8 to families residing 
        in any development that is removed from the inventory 
        of the public housing agency and the annual 
        contributions contract pursuant to subsection (b).
            (2) Each conversion plan under subsection (c) 
        shall--
                    (A) require the agency to notify families 
                residing in the development, consistent with 
                any guidelines issued by the Secretary 
                governing such notifications, that the 
                development shall be removed from the inventory 
                of the public housing agency and the families 
                shall receive tenant-based or project-based 
                assistance, and to provide any necessary 
                counseling for families; and
                    (B) ensure that all tenants affected by a 
                determination under this section that a 
                development shall be removed from the inventory 
                of a public housing agency shall be offered 
                tenant-based or project-based assistance and 
                shall be relocated, as necessary, to other 
                decent, safe, sanitary, and affordable housing 
                which is, to the maximum extent practicable, 
                housing of their choice.
      (e) In General.--
            (1) The Secretary may require a public housing 
        agency to provide such information as the Secretary 
        considers necessary for the administration of this 
        section.
            (2) As used in this section, the term 
        ``development'' shall refer to a project or projects, 
        or to portions of a project or projects, as 
        appropriate.
            (3) Section 18 of the United States Housing Act of 
        1937 shall not apply to the demolition of developments 
        removed from the inventory of the public housing agency 
        under this section.

SEC. 204. STREAMLINING SECTION 8 TENANT-BASED ASSISTANCE.

      (a) ``Take-One, Take-All''.--Section 8(t) of the United 
States Housing Act of 1937 is hereby repealed.
      (b) Exemption From Notice Requirements for the 
Certificate and Voucher Programs.--Section 8(c) of such Act is 
amended--
            (1) in paragraph (8), by inserting after 
        ``section'' the following: ``(other than a contract for 
        assistance under the certificate or voucher program)''; 
        and
            (2) in the first sentence of paragraph (9), by 
        striking ``(but not less than 90 days in the case of 
        housing certificates or vouchers under subsection (b) 
        or (o))'' and inserting ``, other than a contract under 
        the certificate or voucher program''.
      (c) Endless Lease.--Section 8(d)(1)(B) of such Act is 
amended--
            (1) in clause (ii), by inserting ``during the term 
        of the lease,'' after ``(ii)''; and
            (2) in clause (iii), by striking ``provide that'' 
        and inserting ``during the term of the lease,''.
      (d) Applicability.--The provisions of this section shall 
be effective for fiscal year 1996 only.

SEC. 205. SECTION 8 FAIR MARKET RENTALS, ADMINISTRATIVE FEES, AND DELAY 
                    IN REISSUANCE.

      (a) Fair Market Rentals.--The Secretary shall establish 
fair market rentals for purposes of section 8(c)(1) of the 
United States Housing Act of 1937, as amended, that shall be 
effective for fiscal year 1996 and shall be based on the 40th 
percentile rent of rental distributions of standard quality 
rental housing units. In establishing such fair market rentals, 
the Secretary shall consider only the rents for dwelling units 
occupied by recent movers and may not consider the rents for 
public housing dwelling units or newly constructed rental 
dwelling units.
      (b) Administrative Fees.--Notwithstanding the second 
sentence of section 8(q)(1) of the United States Housing Act of 
1937, as amended, for fiscal year 1996, the portions of the 
fees for costs incurred by public housing agencies in 
administering the certificate, voucher, and moderate 
rehabilitation programs under section 8 shall not exceed 7.65 
percent of the fair market rental established for a 2-bedroom 
existing rental dwelling unit in the market area of the public 
housing agency for the first 600 units administered by any such 
public housing agency, and 7.0 percent of the fair market 
rental established for a 2-bedroom existing rental dwelling 
unit in the market area of the public housing agency.
      (c) Delay Reissuance of Vouchers and Certificates.--
Notwithstanding any other provision of law, a public housing 
agency administering certificate or voucher assistance provided 
under subsection (b) or (o) of section 8 of the United States 
Housing Act of 1937, as amended, shall delay for 3 months, the 
use of any amounts of such assistance (or the certificate or 
voucher representing assistance amounts) made available by the 
termination during fiscal year 1996 of such assistance on 
behalf of any family for any reason, but not later than October 
1, 1996; with the exception of any certificates assigned or 
committed to project based assistance as permitted otherwise by 
the Act, accomplished prior to the effective date of this Act.

SEC. 206. PUBLIC HOUSING/SECTION 8 MOVING TO WORK DEMONSTRATION.

      (a) Purpose.--The purpose of this demonstration is to 
give public housing agencies and the Secretary of Housing and 
Urban Development the flexibility to design and test various 
approaches for providing and administering housing assistance 
that: reduce cost and achieve greater cost effectiveness in 
Federal expenditures; give incentives to families with children 
where the head of household is working, seeking work, or is 
preparing for work by participating in job training, 
educational programs, or programs that assist people to obtain 
employment and become economically self-sufficient; and 
increase housing choices for low-income families.
      (b) Program Authority.--The Secretary of Housing and 
Urban Development shall conduct a demonstration program under 
this section beginning in fiscal year 1996 under which up to 30 
public housing agencies (including Indian housing authorities) 
administering the public or Indian housing program and the 
section 8 housing assistance payments program, administering a 
total number of public housing units not in excess of 25,000, 
may be selected by the Secretary to participate. The Secretary 
shall provide training and technical assistance during the 
demonstration and conduct detailed evaluations of up to 15 such 
agencies in an effort to identify replicable program models 
promoting the purpose of the demonstration. Under the 
demonstration, notwithstanding any provision of the United 
States Housing Act of 1937 except as provided in subsection 
(e), an agency may combine operating assistance provided under 
section 9 of the United States Housing Act of 1937, 
modernization assistance provided under section 14 of such Act, 
and assistance provided under section 8 of such Act for the 
certificate and voucher programs, to provide housing assistance 
for low-income families, as defined in section 3(b)(2) of the 
United States Housing Act of 1937, and services to facilitate 
the transition to work on such terms and conditions as the 
agency may propose and the Secretary may approve.
      (c) Application.--An application to participate in the 
demonstration--
            (1) shall request authority to combine assistance 
        under sections 8, 9, and 14 of the United States 
        Housing Act of 1937;
            (2) shall be submitted only after the public 
        housing agency provides for citizen participation 
        through a public hearing and, if appropriate, other 
        means;
            (3) shall include a plan developed by the agency 
        that takes into account comments from the public 
        hearing and any other public comments on the proposed 
        program, and comments from current and prospective 
        residents who would be affected, and that includes 
        criteria for--
                    (A) families to be assisted, which shall 
                require that at least 75 percent of the 
                families assisted by participating 
                demonstration public housing authorities shall 
                be very low-income families, as defined in 
                section 3(b)(2) of the United States Housing 
                Act of 1937, and at least 50 percent of the 
                families selected shall have incomes that do 
                not exceed 30 percent of the median family 
                income for the area, as determined by the 
                Secretary with adjustments for smaller and 
                larger families, except that the Secretary may 
                establish income ceilings higher or lower than 
                30 percent of the median for the area on the 
                basis of the Secretary's findings that such 
                variations are necessary because of unusually 
                high or low family income;
                    (B) establishing a reasonable rent policy, 
                which shall be designed to encourage employment 
                and self-sufficiency by participating families, 
                consistent with the purpose of this 
                demonstration, such as by excluding some or all 
                of a family's earned income for purposes of 
                determining rent;
                    (C) continuing to assist substantially the 
                same total number of eligible low-income 
                families as would have been served had the 
                amounts not been combined;
                    (D) maintaining a comparable mix of 
                families (by family size) as would have been 
                provided had the amounts not been used under 
                the demonstration; and
                    (E) assuring that housing assisted under 
                the demonstration program meets housing quality 
                standards established or approved by the 
                Secretary; and
            (4) may request assistance for training and 
        technical assistance to assist with design of the 
        demonstration and to participate in a detailed 
        evaluation.
      (d) Selection.--In selection among applications, the 
Secretary shall take into account the potential of each agency 
to plan and carry out a program under the demonstration, the 
relative performance by an agency under the public housing 
management assessment program under section 6(j) of the United 
States Housing Act of 1937, and other appropriate factors as 
determined by the Secretary.
      (e) Applicability of 1937 Act Provisions.--
            (1) Section 18 of the United States Housing Act of 
        1937 shall continue to apply to public housing 
        notwithstanding any use of the housing under this 
        demonstration.
            (2) Section 12 of such Act shall apply to housing 
        assisted under the demonstration, other than housing 
        assisted solely due to occupancy by families receiving 
        tenant-based assistance.
      (f) Effect on Section 18, Operating Subsidies, and 
Comprehensive Grant Program Allocations.--The amount of 
assistance received under section 8, section 9, or pursuant to 
section 14 by a public housing agency participating in the 
demonstration under this part shall not be diminished by its 
participation.
      (g) Records, Reports, and Audits.--
            (1) Keeping of records.--Each agency shall keep 
        such records as the Secretary may prescribe as 
        reasonably necessary to disclose the amounts and the 
        disposition of amounts under this demonstration, to 
        ensure compliance with the requirements of this 
        section, and to measure performance.
            (2) Reports.--Each agency shall submit to the 
        Secretary a report, or series of reports, in a form and 
        at a time specified by the Secretary. Each report 
        shall--
                    (A) document the use of funds made 
                available under this section;
                    (B) provide such data as the Secretary may 
                request to assist the Secretary in assessing 
                the demonstration; and
                    (C) describe and analyze the effect of 
                assisted activities in addressing the 
                objectives of this part.
            (3) Access to documents by the secretary.--The 
        Secretary shall have access for the purpose of audit 
        and examination to any books, documents, papers, and 
        records that are pertinent to assistance in connection 
        with, and the requirements of, this section.
            (4) Access to documents by the comptroller 
        general.--The Comptroller General of the United States, 
        or any of the duly authorized representatives of the 
        Comptroller General, shall have access for the purpose 
        of audit and examination to any books, documents, 
        papers, and records that are pertinent to assistance in 
        connection with, and the requirements of, this section.
      (h) Evaluation and Report.--
            (1) Consultation with pha and family 
        representatives.--In making assessments throughout the 
        demonstration, the Secretary shall consult with 
        representatives of public housing agencies and 
        residents.
            (2) Report to congress.--Not later than 180 days 
        after the end of the third year of the demonstration, 
        the Secretary shall submit to the Congress a report 
        evaluating the programs carried out under the 
        demonstration. The report shall also include findings 
        and recommendations for any appropriate legislative 
        action.
      (i) Funding for Technical Assistance and Evaluation.--
From amounts appropriated for assistance under section 14 of 
the United States Housing Act of 1937 for fiscal years 1996, 
1997, and 1998, the Secretary may use up to a total of 
$5,000,000--
            (1) to provide, directly or by contract, training 
        and technical assistance--
                    (A) to public housing agencies that express 
                an interest to apply for training and technical 
                assistance pursuant to subsection (c)(4), to 
                assist them in designing programs to be 
                proposed for the demonstration; and
                    (B) to up to 10 agencies selected to 
                receive training and technical assistance 
                pursuant to subsection (c)(4), to assist them 
                in implementing the approved program; and
            (2) to conduct detailed evaluations of the 
        activities of the public housing agencies under 
        paragraph (1)(B), directly or by contract.

SEC 207. REPEAL OF PROVISIONS REGARDING INCOME DISREGARDS.

      (a) Maximum Annual Limitation on Rent Increases Resulting 
From Employment.--Section 957 of the Cranston-Gonzales National 
Affordable Housing Act is hereby repealed, retroactive to 
November 28, 1990, and shall be of no effect.
      (b) Economic Independence.--Section 923 of the Housing 
and Community Development Act of 1992 is hereby repealed, 
retroactive to October 28, 1992, and shall be of no effect.

SEC 208. EXTENSION OF MULTIFAMILY HOUSING FINANCE PROGRAMS.

      (a) The first sentence of section 542(b)(5) of the 
Housing and Community Development Act of 1992 (12 U.S.C. 1707 
note) is amended by striking ``on not more than 15,000 units 
over fiscal years 1993 and 1994'' and inserting ``on not more 
than 7,500 units during fiscal year 1996''.
      (b) The first sentence of section 542(c)(4) of the 
Housing and Community Development Act of 1992 (12 U.S.C. 1707 
note) is amended by striking ``on not to exceed 30,000 units 
over fiscal years 1993, 1994, and 1995'' and inserting ``on not 
more than 10,000 units during fiscal year 1996''.

SEC 209. FORECLOSURE OF HUD-HELD MORTGAGES THROUGH THIRD PARTIES.

      During fiscal year 1996, the Secretary of Housing and 
Urban Development may delegate to one or more entities the 
authority to carry out some or all of the functions and 
responsibilities of the Secretary in connection with the 
foreclosure of mortgages held by the Secretary under the 
National Housing Act.

SEC 210. RESTRUCTURING OF THE HUD MULTIFAMILY MORTGAGE PORTFOLIO 
                    THROUGH STATE HOUSING FINANCE AGENCIES.

      During fiscal year 1996, the Secretary of Housing and 
Urban Development may sell or otherwise transfer multifamily 
mortgages held by the Secretary under the National Housing Act 
to a State housing finance agency in connection with a program 
authorized under section 542 (b) or (c) of the Housing and 
Community Development Act of 1992 without regard to the unit 
limitations in section 542(b)(5) or 542(c)(4) of such Act.

SEC 211. TRANSFER OF SECTION 8 AUTHORITY.

      (a) Section 8 of the United States Housing Act of 1937 is 
amended by adding the following new subsection at the end:
      ``(bb) Transfer of Budget Authority.--If an assistance 
contract under this section, other than a contract for tenant-
based assistance, is terminated or is not renewed, or if the 
contract expires, the Secretary shall, in order to provide 
continued assistance to eligible families, including eligible 
families receiving the benefit of the project-based assistance 
at the time of the termination, transfer any budget authority 
remaining in the contract to another contract. The transfer 
shall be under such terms as the Secretary may prescribe.''.

SEC 212. DOCUMENTATION OF MULTIFAMILY REFINANCINGS.

      Notwithstanding the 16th paragraph under the item 
relating to ``administrative provisions'' in title II of the 
Departments of Veterans Affairs and Housing and Urban 
Development and Independent Agencies Appropriations Act, 1995 
(Public Law 103-327; 108 Stat. 2316), the amendments to section 
223(a)(7) of the National Housing Act made by the 15th 
paragraph of such Act shall be effective during fiscal year 
1996 and thereafter.

SEC. 213. FHA MULTIFAMILY DEMONSTRATION AUTHORITY.

      (a) On and after October 1, 1995, and before October 1, 
1997, the Secretary of Housing and Urban Development shall 
initiate a demonstration program with respect to multifamily 
projects whose owners agree to participate and whose mortgages 
are insured under the National Housing Act and that are 
assisted under section 8 of the United States Housing Act of 
1937 and whose present section 8 rents are, in the aggregate, 
in excess of the fair market rent of the locality in which the 
project is located. These programs shall be designed to test 
the feasibility and desirability of the goal of ensuring, to 
the maximum extent practicable, that the debt service and 
operating expenses, including adequate reserves, attributable 
to such multifamily projects can be supported with or without 
mortgage insurance under the National Housing Act and with or 
without above-market rents and utilizing project-based 
assistance or, with the consent of the property owner, tenant 
based assistance, while taking into account the need for 
assistance of low and very low income families in such 
projects. In carrying out this demonstration, the Secretary may 
use arrangements with third parties, under which the Secretary 
may provide for the assumption by the third parties (by 
delegation, contract, or otherwise) of some or all of the 
functions, obligations, and benefits of the Secretary.
            (1) Goals.--The Secretary of Housing and Urban 
        Development shall carry out the demonstration programs 
        under this section in a manner that--
                    (A) will protect the financial interests of 
                the Federal Government;
                    (B) will result in significant 
                discretionary cost savings through debt 
                restructuring and subsidy reduction; and
                    (C) will, in the least costly fashion, 
                address the goals of--
                            (i) maintaining existing housing 
                        stock in a decent, safe, and sanitary 
                        condition;
                            (ii) minimizing the involuntary 
                        displacement of tenants;
                            (iii) restructuring the mortgages 
                        of such projects in a manner that is 
                        consistent with local housing market 
                        conditions;
                            (iv) supporting fair housing 
                        strategies;
                            (v) minimizing any adverse income 
                        tax impact on property owners; and
                            (vi) minimizing any adverse impact 
                        on residential neighborhoods.

In determining the manner in which a mortgage is to be 
restructured or the subsidy reduced, the Secretary may balance 
competing goals relating to individual projects in a manner 
that will further the purposes of this section.
            (2) Demonstration approaches.--In carrying out the 
        demonstration programs, subject to the appropriation in 
        subsection (f), the Secretary may use one or more of 
        the following approaches:
                    (A) Joint venture arrangements with third 
                parties, under which the Secretary may provide 
                for the assumption by the third parties (by 
                delegation, contract, or otherwise) of some or 
                all of the functions, obligations, and benefits 
                of the Secretary.
                    (B) Subsidization of the debt service of 
                the project to a level that can be paid by an 
                owner receiving an unsubsidized market rent.
                    (C) Renewal of existing project-based 
                assistance contracts where the Secretary shall 
                approve proposed initial rent levels that do 
                not exceed the greater of 120 percent of fair 
                market rents or comparable market rents for the 
                relevant metropolitan market area or at rent 
                levels under a budget-based approach.
                    (D) Nonrenewal of expiring existing 
                project-based assistance contracts and 
                providing tenant-based assistance to previously 
                assisted households.
      (b) For purposes of carrying out demonstration programs 
under subsection (a)--
            (1) the Secretary may manage and dispose of 
        multifamily properties owned by the Secretary as of 
        October 1, 1995 and multifamily mortgages held by the 
        Secretary as of October 1, 1995 for properties assisted 
        under section 8 with rents above 110 percent of fair 
        market rents without regard to any other provision of 
        law; and
            (2) the Secretary may delegate to one or more 
        entities the authority to carry out some or all of the 
        functions and responsibilities of the Secretary in 
        connection with the foreclosure of mortgages held by 
        the Secretary under the National Housing Act.
      (c) For purposes of carrying out demonstration programs 
under subsection (a), subject to such third party consents (if 
any) as are necessary including but not limited to (i) consent 
by the Government National Mortgage Association where it owns a 
mortgage insured by the Secretary; (ii) consent by an issuer 
under the mortgage-backed securities program of the 
Association, subject to the responsibilities of the issuer to 
its security holders and the Association under such program; 
and (iii) parties to any contractual agreement which the 
Secretary proposes to modify or discontinue, and subject to the 
appropriation in subsection (c), the Secretary or one or more 
third parties designated by the Secretary may take the 
following actions:
            (1) Notwithstanding any other provision of law, and 
        subject to the agreement of the project owner, the 
        Secretary or third party may remove, relinquish, 
        extinguish, modify, or agree to the removal of any 
        mortgage, regulatory agreement, project-based 
        assistance contract, use agreement, or restriction that 
        had been imposed or required by the Secretary, 
        including restrictions on distributions of income which 
        the Secretary or third party determines would interfere 
        with the ability of the project to operate without 
        above market rents. The Secretary or third party may 
        require an owner of a property assisted under the 
        section 8 new construction/substantial rehabilitation 
        program to apply any accumulated residual receipts 
        toward effecting the purposes of this section.
            (2) Notwithstanding any other provision of law, the 
        Secretary of Housing and Urban Development may enter 
        into contracts to purchase reinsurance, or enter into 
        participations or otherwise transfer economic interest 
        in contracts of insurance or in the premiums paid, or 
        due to be paid, on such insurance to third parties, on 
        such terms and conditions as the Secretary may 
        determine.
            (3) The Secretary may offer project-based 
        assistance with rents at or below fair market rents for 
        the locality in which the project is located and may 
        negotiate such other terms as are acceptable to the 
        Secretary and the project owner.
            (4) The Secretary may offer to pay all or a portion 
        of the project's debt service, including payments 
        monthly from the appropriate Insurance Fund, for the 
        full remaining term of the insured mortgage.
            (5) Notwithstanding any other provision of law, the 
        Secretary may forgive and cancel any FHA-insured 
        mortgage debt that a demonstration program property 
        cannot carry at market rents while bearing full 
        operating costs.
            (6) For demonstration program properties that 
        cannot carry full operating costs (excluding debt 
        service) at market rents, the Secretary may approve 
        project-based rents sufficient to carry such full 
        operating costs and may offer to pay the full debt 
        service in the manner provided in paragraph (4).
      (d) Community and Tenant Input.--In carrying out this 
section, the Secretary shall develop procedures to provide 
appropriate and timely notice to officials of the unit of 
general local government affected, the community in which the 
project is situated, and the tenants of the project.
      (e) Limitation on Demonstration Authority.--The Secretary 
may carry out demonstration programs under this section with 
respect to mortgages not to exceed 15,000 units. The 
demonstration authorized under this section shall not be 
expanded until the reports required under subsection (f) are 
submitted to the Congress.
      (f) Appropriation.--For the cost of modifying loans held 
or guaranteed by the Federal Housing Administration, as 
authorized by this subsection (a)(2) and subsection (c), 
$30,000,000, to remain available until September 30, 1997: 
Provided, That such costs shall be as defined in section 502 of 
the Congressional Budget Act of 1974, as amended.
      (g) Report to Congress.--The Secretary shall submit to 
the Congress every six months after the date of enactment of 
this Act a report describing and assessing the programs carried 
out under the demonstrations. The Secretary shall also submit a 
final report to the Congress not later than six months after 
the end of the demonstrations. The reports shall include 
findings and recommendations for any legislative action 
appropriate. The reports shall also include a description of 
the status of each multifamily housing project selected for the 
demonstrations under this section. The final report may 
include--
            (1) the size of the projects;
            (2) the geographic locations of the projects, by 
        State and region;
            (3) the physical and financial condition of the 
        projects;
            (4) the occupancy profile of the projects, 
        including the income, family size, race, and ethnic 
        origin of current tenants, and the rents paid by such 
        tenants;
            (5) a description of actions undertaken pursuant to 
        this section, including a description of the 
        effectiveness of such actions and any impediments to 
        the transfer or sale of multifamily housing projects;
            (6) a description of the extent to which the 
        demonstrations under this section have displaced 
        tenants of multifamily housings projects;
            (7) a description of any of the functions performed 
        in connection with this section that are transferred or 
        contracted out to public or private entities or to 
        States;
            (8) a description of the impact to which the 
        demonstrations under this section have affected the 
        localities and communities where the selected 
        multifamily housing projects are located; and
            (9) a description of the extent to which the 
        demonstrations under this section have affected the 
        owners of multifamily housing projects.

SEC. 214. SECTION 8 CONTRACT RENEWALS.

      (a) For fiscal year 1996 and henceforth, the Secretary of 
Housing and Urban Development may use amounts available for the 
renewal of assistance under section 8 of the United States 
Housing Act of 1937, upon termination or expiration of a 
contract for assistance under section 8 of such Act of 1937 
(other than a contract for tenant-based assistance and 
notwithstanding section 8(v) of such Act for loan management 
assistance), to provide assistance under section 8 of such Act, 
subject to the Section 8 Existing Fair Market Rents, for the 
eligible families assisted under the contracts at expiration or 
termination, which assistance shall be in accordance with terms 
and conditions prescribed by the Secretary.
      (b) Notwithstanding subsection (a) and except for 
projects assisted under section 8(e)(2) of the United States 
Housing Act of 1937 (as it existed immediately prior to October 
1, 1991), at the request of the owner, the Secretary shall 
renew for a period of one year contracts for assistance under 
section 8 that expire or terminate during fiscal year 1996 at 
the current rent levels.
      (c) Section 8(v) of the United States Housing Act of 1937 
is amended to read as follows:
      ``The Secretary may extend expiring contracts entered 
into under this section for project-based loan management 
assistance to the extent necessary to prevent displacement of 
low-income families receiving such assistance as of September 
30, 1996.''.
      (d) Section 236(f) of the National Housing Act (12 U.S.C. 
1715z-1(f)) is amended:
            (1) by striking the second sentence in paragraph 
        (1) and inserting in lieu thereof the following: ``The 
        rental charge for each dwelling unit shall be at the 
        basic rental charge or such greater amount, not 
        exceeding the lower of (i) the fair market rental 
        charge determined pursuant to this paragraph, or (ii) 
        the fair market rental established under section 8(b) 
        of the United States Housing Act of 1937 for the market 
        area in which the housing is located, as represents 30 
        per centum of the tenant's adjusted income.''; and
            (2) by striking paragraph (6).''.

SEC. 215. EXTENSION OF HOME EQUITY CONVERSION MORTGAGE PROGRAM.

      Section 255(g) of the National Housing Act (12 U.S.C. 
1715z-20(g)) is amended--
      (1) in the first sentence, by striking ``September 30, 
1995'' and inserting ``September 30, 1996''; and
      (2) in the second sentence, by striking ``25,000'' and 
inserting ``30,000''.

SEC. 216. ASSESSMENT COLLECTION DATES FOR OFFICE OF FEDERAL HOUSING 
                    ENTERPRISE OVERSIGHT.

      Section 1316(b) of the Housing and Community Development 
Act of 1992 (12 U.S.C. 4516(b)) is amended by striking 
paragraph (2) and inserting the following new paragraph:
      ``(2) Timing of payment.--The annual assessment shall be 
payable semiannually for each fiscal year, in October 1st and 
April 1st.''.

SEC. 217. MERGER LANGUAGE FOR ASSISTANCE FOR THE RENEWAL OF EXPIRING 
                    SECTION 8 SUBSIDY CONTRACTS AND ANNUAL 
                    CONTRIBUTIONS FOR ASSISTED HOUSING.

      All remaining obligated and unobligated balances in the 
Renewal of Expiring Section 8 Subsidy Contracts account on 
September 30, 1995, shall immediately thereafter be transferred 
to and merged with the obligated and unobligated balances, 
respectively, of the Armed Contributions for Assisted Housing 
account.

SEC. 218. DEBT FORGIVENESS.

      (a) The Secretary of Housing and Urban Development shall 
cancel the indebtedness of the Hubbard Hospital Authority of 
Hubbard, Texas, relating to the public facilities loan for 
Project Number PFL-TEX-215, issued under title II of the 
Housing Amendments of 1955. Such hospital authority 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 fees and charges payable in 
connection with such loan.
      (b) The Secretary of Housing and Urban Development shall 
cancel the indebtedness of the Groveton Texas Hospital 
Authority relating to the public facilities loan for Project 
Number TEX-41-PFL0162, issued under title II of the House 
Amendments of 1955. Such hospital authority 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 fees and charges payable in connection 
with such loan.
      (c) The Secretary of Housing and Urban Development shall 
cancel the indebtedness of the Hepzibah Public Service District 
of Hepzibah, West Virginia, relating to the public facilities 
loan for Project Number WV-46-PFL0031, issued under title II of 
the Housing Amendments of 1955. Such public service district if 
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 fees and charges payable in 
connection with such loan.

SEC. 219. CLARIFICATIONS.

      For purposes of Federal law, the Paul Mirabile Center in 
San Diego, California, including areas within such Center that 
are devoted to the delivery of supportive services, has been 
determined to satisfy the ``continuum of care'' requirements of 
the Department of Housing and Urban Development, and shall be 
treated as:
      (a) consisting solely of residential units that (i) 
contain sleeping accommodations and kitchen and bathroom 
facilities, (ii) are located in a building that is used 
exclusively to facilitate the transition of homeless 
individuals (within the meaning of section 103 of the Stewart 
B. McKinney Homeless Assistance Act (42 U.W.C. 11302)) to 
independent living within 24 months, (iii) suitable for 
occupancy, with each cubicle constituting a separate bedroom 
and residential unit, (iv) are used on other than a transient 
basis, and (v) shall be originally placed in service on August 
1, 1995; and
      (b) property that is entirely residential rental 
property, namely, a project for residential rental property.

SEC. 220. EMPLOYMENT LIMITATIONS.

      (a) By the end of fiscal year 1996 the Department of 
Housing and Urban Development shall enjoy no more than seven 
Assistant Secretaries, notwithstanding section 4(a) of the 
Department of Housing and Urban Development Act.
      (b) By the end of fiscal year 1996 the Department of 
Housing and Urban Development shall employ no more than 77 
schedule C and 20 non-career senior executive service 
employees.

SEC. 221. USE OF FUNDS.

      (a) Of the $93,400,000 earmarked in Public Law 101-144 
(103 Stat 850), as amended by Public Law 101-302 (104 Stat 
237), for special projects and purposes, any amounts remaining 
of the $500,000 made available to Bethlehem House in Highland, 
California, for site planning and land acquisition shall 
instead be made available to the County of San Bernardino in 
California to assist with the expansion of the Los Padrinos 
Gang Intervention Program and the Unity Home Domestic Violence 
Shelter.
      (b) The amount made available for fiscal year 1995 for 
the removal of asbestos from an abandoned public school 
building in Toledo, Ohio shall be made available for the 
renovation and rehabilitation of an industrial building at the 
University of Toledo in Toledo, Ohio.

SEC. 222. LEAD-BASED PAINT ABATEMENT.

      (a) Section 1011 of Title X--Residential Lead-Based Paint 
Hazard Reduction Act of 1992 is amended as follows: Strike 
``priority housing'' wherever it appears in said section and 
insert ``housing''.
      (b) Section 1011(a) shall be amended as follows: At the 
end of the subsection after the period, insert:
      ``Grants shall only be made under this section to provide 
assistance for housing which meets the following criteria--
            ``(1) for grants made to assist rental housing, at 
        least 50 percent of the units must be occupied by or 
        made available to families with incomes at or below 50 
        percent of the area median income level and the 
        remaining units shall be occupied or made available to 
        families with incomes at or below 80 percent of the 
        area median income level, and in all cases the landlord 
        shall give priority in renting units assisted under 
        this section, for not less than 3 years following the 
        completion of lead abatement activities, to families 
        with a child under the age of six years--
                    ``(A) except that buildings with five or 
                more units may have 20 percent of the units 
                occupied by families with incomes above 80 
                percent of area median income level;
            ``(2) for grants made to assist housing owned by 
        owner-occupants, all units assisted with grants under 
        this section shall be the principal residence of 
        families with incomes at or below 80 percent of the 
        area median income level, and not less than 90 percent 
        of the units assisted with grants under this section 
        shall be occupied by a child under the age of six years 
        or shall be units where a child under the age of six 
        years spends a significant amount of time visiting; and
            ``(3) notwithstanding paragraphs (1) and (2), Round 
        II grantees who receive assistance under this section 
        may use such assistance for priority housing.''.

SEC. 223. EXTENSION PERIOD FOR SHARING UTILITY COST SAVINGS WITH PHAS.

      Section 9(A)(3)(b)(I) of the United States Housing Act of 
1937 is amended by striking ``for a period not to exceed 6 
years''.

SEC. 223A. MORTGAGE NOTE SALES.

      The first sentence of section 221(g)(4)(C)(viii) of the 
National Housing Act is amended by striking ``September 30, 
1995'' and inserting in lieu thereof ``September 30, 1996''.

SEC. 223B. REPEAL OF FROST-LELAND.

      Section 415 of the Department of Housing and Urban 
Development--Independent Agencies Appropriations Act, 1988 
(Public Law 100-202; 101 Stat. 1329-213) is repealed.

SEC. 223C. FHA SINGLE-FAMILY ASSIGNMENT PROGRAM REFORM.

      (a) Foreclosure Avoidance.--The last sentence of section 
204(a) of the National Housing Act (12 U.S.C. 1710(a)) is 
amended by inserting before the period the following: ``: And 
provided further, That the Secretary may pay insurance benefits 
to the mortgagee to recompense the mortgagee for its actions to 
provide an alternative to the foreclosure of a mortgage that is 
in default, which actions may include special foreclosure, loan 
modification, and deeds in lieu of foreclosure, all upon terms 
and conditions as the mortgagee shall determine in the 
mortgagee's sole discretion, within guidelines provided by the 
Secretary, but which may not include assignment of a mortgage 
to the Secretary: And provided further, That for purposes of 
the preceding proviso, no action authorized by the Secretary 
and no action taken, nor any failure to act, by the Secretary 
or the mortgagee shall be subject to judicial review.''.
      (b) Authority to Assist Mortgagors in Default.--Section 
230 of the National Housing Act (12 U.S.C. 1715u) is amended to 
read as follows:

              ``Authority to Assist Mortgagors in Default

      ``Sec. 230. (a) Payment of Partial Claim.--The Secretary 
may establish a program for payment of a partial claim to a 
mortgagee that agrees to apply the claim amount to payment of a 
mortgage on a 1- to 4-family residence that is in default. Any 
such payment under such program to the mortgagee shall be made 
in the sole discretion of the Secretary and on terms and 
conditions acceptable to the Secretary, except that--
            ``(1) the amount of the payment shall be in an 
        amount determined by the Secretary, not to exceed an 
        amount equivalent to 12 of the monthly mortgage 
        payments and any costs related to the default that are 
        approved by the Secretary; and
            ``(2) the mortgagor shall agree to repay the amount 
        of the insurance claim to the Secretary upon terms and 
        conditions acceptable to the Secretary

The Secretary may pay the mortgagee, from the appropriate 
insurance fund, in connection with any activities that the 
mortgagee is required to undertake concerning repayment by the 
mortgagor of the amount owed to the Secretary.
      ``(b) Assignment.--
            ``(1) Program authority.--The Secretary may 
        establish a program for assignment to the Secretary, 
        upon request of the mortgagee, of a mortgage on a 1- to 
        4-family residence insured under this Act.
            ``(2) Program requirements.--The Secretary may 
        accept assignment of a mortgage under a program under 
        this subsection only if--
                    ``(A) the mortgage was in default;
                    ``(B) the mortgagee has modified the 
                mortgage to cure the default and provide for 
                mortgage payments within the reasonable ability 
                of the mortgagor to pay, at interest rates not 
                exceeding current market interest rates; and
                    ``(C) the Secretary arranges for servicing 
                of the assigned mortgage by a mortgagee (which 
                may include the assigning mortgagee) through 
                procedures that the Secretary has determined to 
                be in the best interests of the appropriate 
                insurance fund.
            ``(3) Payment of insurance benefits.--Upon 
        accepting assignment of a mortgage under a program 
        established under this subsection, the Secretary may 
        pay insurance benefits to the mortgagee from the 
        appropriate insurance fund, in an amount that the 
        Secretary determines to be appropriate, not to exceed 
        the amount necessary to compensate the mortgagee for 
        the assignment and any losses and expenses resulting 
        from the mortgage modification.
      ``(c) Prohibition of Judicial Review.--No decision by the 
Secretary to exercise or forego exercising any authority under 
this section shall be subject to judicial review.''.
      (c) Savings Provision.--Any mortgage for which the 
mortgagor has applied to the Secretary, before the date of 
enactment of the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations 
Act, 1996, for assignment pursuant to subsection (b) of this 
section as in effect before such date of enactment shall 
continue to be governed by the provisions of such section, as 
in effect immediately before such date of enactment.
      (d) Applicability of Other Laws.--No provision of this 
Act, or any other law, shall be construed to require the 
Secretary of Housing and Urban Development to provide an 
alternative to foreclosure for mortgagees with mortgages on 1- 
to 4-family residences insured by the Secretary under the 
National Housing Act, or to accept assignments of such 
mortgages.
      (e) Applicability of Amendments.--Except as provided in 
subsection (d), the amendments made by subsections (a) and (b) 
shall apply with respect to mortgages originated before fiscal 
year 1996.
      (f) Regulations.--Not later than 60 days after the date 
of enactment of this Act, the Secretary of Housing and Urban 
Development shall issue interim regulations to implement this 
section and amendments made by this section.
      (g) Effectiveness and Applicability.--If this Act is 
enacted after the date of enactment of the Balanced Budget Act 
of 1995--
            (1) subsections (a), (b), (c), (d), and (e) of this 
        section shall not take effect; and
            (2) section 2052(c) of the Balanced Budget Act of 
        1995 is amended by striking ``that are originated on or 
        after October 1, 1995'' and inserting in lieu thereof 
        ``to mortgages originated before, during, and after 
        fiscal year 1996.''.

SEC. 223D. SPENDING LIMITATIONS.

      (a) None of the funds in this Act may be used by the 
Secretary to impose any sanction or penalty because of the 
enactment of any State or local law or regulation declaring 
English as the official language.
      (b) No part of any appropriation contained in this Act 
shall be used for lobbying activities as prohibited by law.

SEC. 223E. TRANSFER OF FUNCTIONS TO THE DEPARTMENT OF JUSTICE.

      All functions, activities, and responsibilities of the 
Secretary of Housing and Urban Development relating to title 
VIII of the Civil Rights Act of 1968, as amended by the Fair 
Housing Amendments Act of 1988, and the Fair Housing Act, 
including any rights guaranteed under the Fair Housing Act 
(including any functions relating to the Fair Housing 
Initiatives program under section 561 of the Housing and 
Community Development Act of 1987), are hereby transferred to 
the Attorney General of the United States effective April 1, 
1997: Provided, That none of the aforementioned authority or 
responsibility for enforcement of the Fair Housing Act shall be 
transferred to the Attorney General until adequate personnel 
and resources allocated to such activity at the Department of 
Housing and Urban Development are transferred to the Department 
of Justice.
      And the Senate agree to the same.
      Amendment numbered 65:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 65, and agree to the same with 
an amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:


                         science and technology


      For science and technology, including research and 
development activities, which shall include research and 
development activities under the Comprehensive Environmental 
Response, Compensation and Liability Act of 1980 (CERCLA), as 
amended; necessary expenses for personnel and related costs and 
travel-expenses, including uniforms, or allowances therefore, 
as authorized by 5 U.S.C. 5901-5902; services as authorized by 
5 U.S.C. 3109, but at rates for individuals not to exceed the 
per diem rate equivalent to the rate for GS-18; procurement of 
laboratory equipment and supplies; other operating expenses in 
support of research and development; construction, alteration, 
repair, rehabilitation and renovation of facilities, not to 
exceed $75,000 per project; $525,000,000, which shall remain 
available until September 30, 1997.
      And the Senate agree to the same.
      Amendment numbered 66:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 66, and agree to the same with 
an amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:


                 environmental programs and management


      For environmental programs and management, including 
necessary expenses for personnel and related costs and travel 
expenses, including uniforms, or allowances therefore, as 
authorized by 5 U.S.C. 5901-5902; services as authorized by 5 
U.S.C. 3109, but at rates for individuals not to exceed the per 
diem rate equivalent to the rate for GS-18; hire of passenger 
motor vehicles; hire, maintenance, and operation of aircraft; 
purchase of reprints; library memberships in societies or 
associations which issue publications to members only or at a 
price to members lower than to subscribers who are not members; 
construction, alteration, repair, rehabilitation, and 
renovation of facilities, not to exceed $75,000 per project; 
and not to exceed $6,000 for official reception and 
representation expenses; $1,550,300,000, which shall remain 
available until September 30, 1997: Provided, That, 
notwithstanding any other provision of law, for this fiscal 
year and hereafter, an industrial discharger that is a 
pharmaceutical manufacturing facility and discharged to the 
Kalamazoo Water Reclamation Plant (an advanced wastewater 
treatment plant with activated carbon) prior to the date of 
enactment of this Act may be exempted from categorical 
pretreatment standards under section 307(b) of the Federal 
Water Pollution Control Act, as amended, if the following 
conditions are met: (1) the owner or operator of the Kalamazoo 
Water Reclamation Plant applies to the State of Michigan for an 
exemption for such industrial discharger, (2) the State or 
Administrator, as applicable, approves such exemption request 
based upon a determination that the Kalamazoo Water Reclamation 
Plant will provide treatment and pollution removal equivalent 
to or better than that which would be required through a 
combination of pretreatment by such industrial discharger and 
treatment by the Kalamazoo Water Reclamation Plant in the 
absence of the exemption, and (3) compliance with paragraph (2) 
is addressed by the provisions and conditions of a permit 
issued to the Kalamazoo Water Reclamation Plant under section 
402 of such Act, and there exists an operative financial 
contract between the City of Kalamazoo and the industrial user 
and an approved local pretreatment program, including a joint 
monitoring program and local controls to prevent against 
interference and pass through.
      And the Senate agree to the same.
      Amendment numbered 68:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 68, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$28,500,000; and the Senate agree to the same.
      Amendment numbered 70:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 70, and agree to the same with 
an amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert: consisting of $913,400,000 as authorized by 
section 517(a) of the Superfund Amendments and Reauthorization 
Act of 1986 (SARA), as amended by Public Law 101-508, and 
$250,000,000 as a payment from general revenues to the 
Hazardous Substance Superfund as authorized by section 517(b) 
of SARA, as amended by Public Law 101-508
      On page 61, line 1, of the House engrossed bill, H.R. 
2099, delete ``$1,003,400,000'' and insert ``$1,163,400,000''; 
and the Senate agree to the same.
      Amendment numbered 71:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 71, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$11,000,000; and the Senate agree to the same.
      Amendment numbered 72:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 72, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$59,000,000; and the Senate agree to the same.
      Amendment numbered 74:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 74, and agree to the same with 
an amendment, as follows:
      In lieu of the matter proposed by said amendment, insert: 
: Provided further, That none of the funds made available under 
this heading may be used by the Environmental Protection Agency 
to propose for listing or to list any additional facilities on 
the National Priorities List established by section 105 of the 
Comprehensive Environmental Response, Compensation and 
Liability Act (CERCLA), as amended (42 U.S.C. 9605), unless the 
Administrator receives a written request to propose for listing 
or to list a facility from the Governor of the State in which 
the facility is located, or unless legislation to reauthorize 
CERCLA is enacted; and the Senate agree to the same.
      Amendment numbered 76:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 76, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$7,000,000; and the Senate agree to the same.
      Amendment numbered 77:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 77, and agree to the same with 
an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$500,000; and the Senate agree to the same.
      Amendment numbered 80:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 80, and agree to the same with 
an amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:


                   state and tribal assistance grants


      For environmental programs and infrastructure assistance, 
including capitalization grants for State revolving funds and 
performance partnership grants, $2,323,000,000, to remain 
available until expended, of which $1,400,000,000 shall be for 
making capitalization grants for State revolving funds to 
support water infrastructure financing; $100,000,000 for 
architectural, engineering, design, construction and related 
activities in connection with the construction of high priority 
water and wastewater facilities in the area of the United 
States-Mexico Border, after consultation with the appropriate 
border commission; $50,000,000 for grants to the State of 
Texas, which shall be matched by an equal amount of State funds 
from State resources, for the purpose of improving wastewater 
treatment for colonias; $15,000,000 for grants to the State of 
Alaska, subject to an appropriate cost share as determined by 
the Administrator, to address wastewater infrastructure needs 
of rural and Alaska Native villages; and $100,000,000 for 
making grants for the construction of wastewater treatment 
facilities and the development of groundwater in accordance 
with the terms and conditions specified for such grants in the 
conference report to accompany this Act (H.R. 2099): Provided, 
That beginning in fiscal year 1996 and each fiscal year 
thereafter, and notwithstanding any other provision of law, the 
Administrator is authorized to make grants annually from funds 
appropriated under this heading, subject to such terms and 
conditions as the Administrator shall establish, to any State 
or federally recognized Indian tribe for multimedia or single 
media pollution prevention, control and abatement and related 
environmental activities at the request of the Governor or 
other appropriate State official or the tribe: Provided 
further, That from funds appropriated under this heading, the 
Administrator may make grants to federally recognized Indian 
governments for the development of multimedia environmental 
programs: Provided further, That of the $1,400,000,000 for 
capitalization grants for State revolving funds to support 
water infrastructure financing, $275,000,000 shall be for 
drinking water State revolving funds, but if no drinking water 
State revolving fund legislation is enacted by June 1, 1996, 
these funds shall immediately be available for making 
capitalization grants under title VI of the Federal Water 
Pollution Control Act, as amended: Provided further, That of 
the funds made available in Public Law 103-327 and in Public 
Law 103-124 for capitalization grants for State revolving funds 
to support water infrastructure financing, $225,000,000 shall 
be made available for capitalization grants for State revolving 
funds under title VI of the Federal Water Pollution Control 
Act, as amended, if no drinking water State revolving fund 
legislation is enacted by June 1, 1996: Provided further, That 
of the funds made available under this heading for 
capitalization grants for State Revolving Funds under title VI 
of the Federal Water Pollution Control Act, as amended, 
$50,000,000 shall be for wastewater treatment in impoverished 
communities pursuant to section 102(d) of H.R. 961 as approved 
by the United States House of Representatives on May 16, 1995: 
Provided further, That of the funds appropriated in the 
Construction Grants and Water Infrastructure/State Revolving 
Funds accounts since the appropriation for the fiscal year 
ending September 30, 1992, and hereafter, for making grants for 
wastewater treatment works construction projects, portions may 
be provided by the recipients to States for managing 
construction grant activities, on condition that the States 
agree to reimburse the recipients from State funding sources: 
Provided further, That the funds made available in Public Law 
103-327 for a grant to the City of Mt. Arlington, New Jersey, 
in accordance with House Report 103-715, shall be available for 
a grant to that city for water and sewer improvements.
      And the Senate agree to the same.
      Amendment numbered 81:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 81, and agree to the same with 
an amendment, as follows:
      In lieu of the matter proposed by said amendment, insert: 
Administrative Provisions; and the Senate agree to the same.
      Amendment numbered 83:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 83, and agree to the same with 
an amendment, as follows:
      In lieu of the matter proposed by said amendment, insert:
      Sec. 301. None of the funds provided in this Act may be 
used within the Environmental Protection Agency for any final 
action by the Administrator or her delegate for signing and 
publishing for promulgation of a rule concerning any new 
standard for radon in drinking water. ; and the Senate agree to 
the same.
      Amendment numbered 94:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 94, and agree to the same with 
an amendment, as follows:
      Restore the matter stricken by said amendment, amended as 
follows:
      In lieu of the sum named in the matter restored, insert: 
$222,000,000; and the Senate agree to the same.
      Amendment numbered 102:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 102, and agree to the same 
with an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$5,456,600,000; and the Senate agree to the same.
      Amendment numbered 104:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 104, and agree to the same 
with an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$5,845,900,000; and the Senate agree to the same.
      Amendment numbered 105:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 105, and agree to the same 
with an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$2,502,200,000; and the Senate agree to the same.
      Amendment numbered 109:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 109, and agree to the same 
with an amendment, as follows:
      In lieu of the matter proposed by said amendment, insert:
      Upon the determination by the Administrator that such 
action is necessary, the Administrator may, with the approval 
of the Office of Management and Budget, transfer not to exceed 
$50,000,000 of funds made available in this Act to the National 
Aeronautics and Space Administration between such 
appropriations or any subdivision thereof, to be merged with 
and to be available for the same purposes, and for the same 
time period, as the appropriation to which transferred: 
Provided, That such authority to transfer may not be used 
unless for higher priority items, based on unforeseen 
requirements, than those for which originally appropriated: 
Provided further: That the Administrator of the National 
Aeronautics and Space Administration shall notify the Congress 
promptly of all transfers made pursuant to this authority. ; 
and the Senate agree to the same.
      Amendment numbered 110:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 110, and agree to the same 
with an amendment, as follows:
      In lieu of the sum proposed by said amendment, insert: 
$2,274,000,000; and the Senate agree to the same.
      Amendment numbered 114:
      That the House recede from its disagreement to the 
amendment of the Senate numbered 114, and agree to the same 
with an amendment, as follows:
      Restore the matter stricken by said amendment, amended to 
read as follows:
      Sec. 519. In fiscal year 1996, the Director of the 
Federal Emergency Management Agency shall sell the disaster 
housing inventory of mobile homes and trailers, and the 
proceeds thereof shall be deposited in the Treasury. ; and the 
Senate agree to the same.
      The committee of conference report in disagreement 
amendment numbered 63.
                                   Jerry Lewis,
                                   Tom DeLay,
                                   Barbara F. Vucanovich,
                                   James T. Walsh,
                                   David L. Hobson,
                                   Joe Knollenberg,
                                   Rodney P. Frelinghuysen,
                                   Mark W. Neumann,
                                   Bob Livingston,
                                 Managers on the Part of the House.
                                   Christopher S. Bond,
                                   Conrad Burns,
                                   Ted Stevens,
                                   Richard C. Shelby,
                                   Robert F. Bennett,
                                   Ben Nighthorse Campbell,
                                   Mark O. Hatfield,
                                   Barbara A. Mikulski,
                                   Patrick J. Leahy,
                                   J. Bennett Johnston,
                                   J. Robert Kerrey,
                                   Robert C. Byrd,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendments of the Senate to the bill (H.R. 2099) 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, 1996, and for other purposes, submit 
the following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report:

                TITLE I--DEPARTMENT OF VETERANS AFFAIRS

                    veterans benefits administration

      Amendment No. 1: Earmarks not to exceed $25,180,000 of 
compensation and pensions funds for payments to the general 
operating expenses and medical care appropriations to implement 
savings provisions of authorizing legislative as proposed by 
the House, instead of $27,431,000 as proposed by the Senate. 
The additional administrative funds are not required as the 
limitation on compensation payments to certain incompetent 
veterans is deleted.
      Amendment No. 2: Appropriates $1,345,300,000 for 
readjustment benefits as proposed by the House, instead of 
$1,352,180,000 as proposed by the Senate.
      Amendment No. 3: Deletes language proposed by the Senate 
earmarking $6,880,000 of the readjustment benefits 
appropriations for funding costs of the Service Members 
Occupational Conversion and Training Program. The conferees 
note that language is included under the general operating 
expenses appropriation permitting the payment of administrative 
costs for the Service Members Occupational Conversion and 
Training Act in fiscal year 1996.

                     veterans health administration

      Amendment No. 4: Appropriations $16,564,000,000 for 
medical care, instead of $16,777,474,000 as proposed by the 
House and $16,450,000,000 as proposed by the Senate.
      The conferees note that the amount provided for medical 
care represents an increase of approximately $400,000,000 above 
the fiscal year 1995 level--and is the only appropriation in 
the bill with such a significant increase. While not the full 
amount requested, the increase provided will enable the 
Department to provide quality care to all veterans currently 
being served by the VA medical system. The conferees continue 
to be concerned about the Secretary's refusal to adopt systemic 
reforms and administrative improvements which would result in 
significant budgetary savings, without in any way compromising 
patient care. The Inspector General, the General Accounting 
Office, the Congressional Budget Office, and the service 
organizations have suggested changes which, if implemented, 
would yield hundreds of millions of dollars in administrative 
savings. As part of the operating plan, the Secretary is to 
submit a plan to implement the improvements identified by these 
organizations and any other reforms which would result in 
administrative savings totaling a minimum of $400,000,000 for 
fiscal year 1996.
      The conference agreement includes funding for the 
following:
            +$500,000 for a Low Vision Center in Ophthalmology 
        at the East Orange VA Medical Center.
            +$500,000 for a geriatric patient care program at 
        the Lyons VA Medical Center.
            +$396,000 to provide outpatient care at the Grafton 
        Development Center in Grafton, North Dakota.
            +$300,000 to provide outpatient care in 
        Williamsport, Pennsylvania.
            +$1,500,000 to expand existing community-based 
        outpatient clinics in Wood County and Tucker County, 
        West Virginia.
            +$1,600,000 to establish a primary care clinic in 
        Liberal, Kansas.
      The conference committee is aware of the difficulty in 
staffing several VA facilities in the southwest, particularly 
in El Paso, Texas. This situation is compounded by budgetary 
constraints the VA faces in allocating FTEE's among its 
facilities. The conferees urge that the VA, through the 
veterans integrated service networks, engage in intra-VISN FTEE 
transfers during the fiscal year for purposes of staffing as 
warranted by changing circumstances in VA medical facilities. 
The conferees also urge the Department to review the staffing 
situation in El Paso and to move personal as necessary to meet 
the new service demands that will exist if veterans are not 
required to travel to other VA facilities for treatment.
      The conferees commend the Department for its 
participation in an advanced coal technology project at the 
Lebanon, Pennsylvania VA Medical Center in which a fluidized 
bed boiler will co-fire coal and medical wastes to provide 
steam for the hospital. Given the potential cost savings for 
energy and hospital waste disposal, the conferees direct the 
Department to study the potential for using this technology at 
other VA facilities.
      The conference committee strongly urges VA to develop a 
center to coordinate academic training programs for physical 
therapists at the Brooklyn VA hospital. The conferees are aware 
there is a shortage of physical therapists nationwide. A 
training center would provide the opportunity for students to 
complete research projects in physical therapy and 
rehabilitation. In view of the critical shortage of clinical 
training sites in the New York City area, the Brooklyn VA would 
provide an excellent location for such a training program.
      The conferees note with considerable interest that the VA 
has used laser-imaging, non-silver, dry-medium technology to 
provide high resolution hard copy images for X-ray examinations 
in various hospitals around the country. This type of system 
produces faster diagnosis, with attendant cost savings, and is 
environmentally safe. Accordingly, the conferees strongly 
encourage the VA to expand the use of this type of technology 
in all of its facilities.
      The VA plans to expand access to outpatient care. These 
access points are being considered in more than 180 locations. 
The conferees are concerned with associated policy, legal, and 
budgetary issues and expect the VA to address these matters 
before proceeding with such expansion plans.
      The conferees understand that the Department expends 
approximately $212,000,000 annually on utility costs. 
Opportunities for creative private sector funding of energy 
efficiency programs exist through procurements sanctioned by 
the Department of Energy's Federal Energy Management Program. 
The VA is encouraged to explore such opportunities, and, where 
appropriate, to take advantage of them.
      Questions have been raised concerning the expansion of 
the Los Angeles National Cemetery by utilizing open space at 
the West Los Angeles VA Medical Center. The conferees direct 
that no property disposal, leasing action or capital 
improvements be taken that would jeopardize the Government's 
title to any land at the West Los Angeles VA Medical Center 
until all options have been reviewed by the VA and the 
Congress.
      Amendment No. 5: Deletes language proposed by the Senate 
enabling the VA to treat veterans eligible for hospital care or 
medical services in the most efficient manner. In deleting this 
language, the conferees wish to make clear that they support 
budget neutral eligibility reform. Current eligibility 
requirements for VA medical care are in need of simplification 
and reform. Such legislation will, within any given dollar 
amount, permit the medical treatment of a greater number of 
veterans on an outpatient basis, as compared to the current 
approach which emphasizes inpatient treatment.
      Amendment No. 6: Appropriates $257,000,000 for medical 
and prosthetic research as proposed by the Senate, instead of 
$251,743,000 as proposed by the House. The conferees agree that 
the recommended amount includes $1,250,000 to establish an 
Office of Veterans Affairs Technology Transfer Center.
      Amendment No. 7: Deletes language proposed by the House 
and stricken by the Senate appropriating $10,386,000 for the 
health professional scholarship program.

                      Departmental Administration

      Amendment No. 8: Appropriates $848,143,000 for general 
operating expenses, instead of $821,487,000 as proposed by the 
House and $872,000,000 as proposed by the Senate. Language has 
been inserted to limit funding for General Administration 
activities, and the number of schedule C and non-career senior 
executive service positions. Language is also inserted to 
permit up to $6,000,000 of the appropriation to be used for 
administrative expenses of the housing loan guaranty programs.
      The conference agreement includes the following changes 
from the budget estimate:
            -$32,000,000 in the Veterans Benefits 
        Administration as an offset to legislation carried in 
        the VA administrative provisions which permits excess 
        revenues in three insurance funds to be used for 
        administrative expenses.
            -$25,500,000 in the Veterans Benefits 
        Administration as an offset to the provision carried 
        under this heading permitting the $25,500,000 earmarked 
        in the 1995 Appropriations Act for VBA's modernization 
        program to be available for the general purposes of the 
        account.
            -$7,423,000 (as a minimum) to be taken from the 
        $221,532,000 appropriation requested for General 
        Administration activities. This will permit not to 
        exceed $214,109,000, the 1995 level, for such 
        activities. The conferees intend that to the maximum 
        extent possible all reductions in General 
        Administration and Veterans Benefits Administration be 
        taken from central office activities.
            -$2,577,000 as a general reduction in Veterans 
        Benefits Administration activities, subject to normal 
        reprogramming procedures. To continue improving the 
        timeliness of claims, the conferees do not intend that 
        any reduction in funding be applied to the 
        compensation, pensions, and education program. The 
        conferees further intend that VBA will utilize 
        $1,000,000 for a study by the National Academy of 
        Public Administration of the claims processing system. 
        The conferees agree that the NAPA report should build 
        upon and not duplicate any previous or ongoing 
        evaluations of the Veterans Benefits Administration. 
        NAPA is to coordinate with those entities which have 
        conducted evaluations in the past and provide to the 
        Department and the appropriate Committees of Congress a 
        detailed and specific implementation plan for the 
        recommendations it makes.
      Language is included to limit to not to exceed 
$214,109,000 for General Administration costs, including not to 
exceed $2,450,000 for salaries and $50,000 for travel costs of 
the Office of the Secretary; $4,392,000 for salaries and 
$75,000 for travel costs of the Office of the Assistant 
Secretary for Policy and Planning; $1,980,000 for salaries and 
$33,000 for travel costs of the Office of the Assistant 
Secretary for Congressional Affairs; and $3,500,000 for 
salaries and $100,000 for travel costs of the Office of the 
Assistant Secretary for Public and Intergovernmental Affairs. 
The balance of the savings is to be taken at the discretion of 
the VA, subject to normal reprogramming procedures, from funds 
requested for the Office of the Assistant Secretary for Human 
Resources and Administration, the Office of General Counsel, 
and the Office of the Assistant Secretary for Acquisition and 
Facilities.
      Language has also been included that would limit the 
number of schedule C employees to 11 and the number of non-
career senior executive service positions to 6 in fiscal year 
1996.
      Language has also been included to permit up to 
$6,000,000 of general operating expenses funds to be used for 
administrative expenses of the loan guaranty and insured loans 
programs. The VA has requested this provision so as to avoid 
furloughs.
      Amendment No. 9: Appropriates $136,155,000 for 
construction, major projects, instead of $183,455,000 as 
proposed by the House and $35,785,000 as proposed by the 
Senate.
      The conference agreement includes the following changes 
from the budget estimate:
            -$146,900,000 from the $154,700,000 requested for 
        the new medical center and nursing home project in 
        Brevard County, Florida. The balance of the request, 
        $7,800,000, together with $17,200,000 appropriated in 
        1995, will provide $25,000,000 for the design and 
        construction of a comprehensive medical outpatient 
        clinic in Brevard County, Florida. The conferees expect 
        the VA to commence construction of this project as soon 
        as possible.
            -$163,500,000 from the $188,500,000 requested for 
        the VA/Air Force joint venture at Travis Air Force Base 
        in Fairfield, California. The balance of the request, 
        $25,000,000, is for the design and construction of an 
        outpatient clinic project at Travis Air Force Base. The 
        conferees recognize that the VA's preliminary cost 
        estimate for this project is $39,500,000. The VA should 
        evaluate the needs of the veterans in the area for 
        outpatient services and report such findings to the 
        Committees on Appropriations.
            +$1,000,000 for design of a new national cemetery 
        in the Albany, New York area.
            +$5,000,000 for design of an ambulatory care 
        addition, patient privacy and environmental 
        improvements project at the Wilkes-Barre, Pennsylvania 
        VA Medical Center.
            +$4,000,000 for the relocation of medical school 
        functions at the Mountain Home, Tennessee VA Medical 
        Center.
            +$1,500,000 for design of an ambulatory care 
        addition project at the Asheville, North Carolina VA 
        Medical Center.
            +$1,400,000 for design of a new national cemetery 
        in the Joliet, Illinois area.
            -$9,000,000 for renovation of nursing units at the 
        Lebanon, Pennsylvania VA Medical Center.
            -$11,500,000 for environmental improvements at the 
        Marion, Illinois VA Medical Center.
            -$17,300,000 for replacement of psychiatric beds at 
        the Marion, Indiana VA Medical Center.
            -$15,100,000 for renovation of psychiatric wards at 
        the Perry Point, Maryland VA Medical Center.
            -$17,200,000 for environmental enhancements at the 
        Salisbury, North Carolina VA Medical Center.
            -$10,000,000 from the $17,500,000 requested for the 
        advance planning fund.
      The conferees have approved major construction funding 
only for those projects which do not require further 
authorization. While many of the projects requested in the 
budget are meritorious, without an authorization no funding can 
be obligated. The Department should utilize minor construction 
funds to meet life safety or code deficiencies and to ensure 
compliance with Joint Commission on Accreditation of Healthcare 
Organizations criteria.
      The conferees believe that the Department must assemble a 
long-term plan for its infrastructure and construction needs, 
taking into consideration an increasingly constrained budgetary 
environment, a decline in the veteran population, shifting 
demographics, the need to provide more equitable access to 
veterans medical care systemwide, changes in health care 
delivery methods, and any policy changes the VA adopts with 
respect to access points. It is expected that the fiscal year 
1997 budget request for major construction funding will be 
predicated on an analysis incorporating all such variables.
      Amendment No. 10: Appropriates $190,000,000 for 
construction, minor projects, as proposed by the Senate, 
instead of $152,934,000 as proposed by the House. The conferees 
agree that this appropriation account should be used to meet 
any critical requirements, such as safety and fire code 
deficiencies, at facilities which were denied major 
construction funding in 1996.

                       administrative provisions

      Amendment No. 11: Inserts language proposed by the Senate 
authorizing the VA to convey property to the Federal Highway 
Administration which is necessary for the modernization of U.S. 
Highway 54 in Wichita, Kansas.
      Amendment No. 12: Deletes language proposed by the Senate 
authorizing the VA to use supply fund resources for an 
acquisition computer network.
      Amendment No. 13: Deletes language proposed by the Senate 
regarding access to VA medical care for veterans in Hawaii, and 
deletes language in the administrative provisions which would 
limit compensation payments to certain incompetent veterans.
      In deleting the Senate language, the conferees wish to 
make clear their concern that veterans in the State of Hawaii 
do not have access to veterans medical care comparable to that 
of veterans in the forty-eight contiguous states. Through 
sharing arrangements with the Tripler Army hospital and 
community facilities, and existing VA outpatient clinics, the 
Department is to ensure adequate and equitable access to care 
for Hawaii's veterans. Furthermore, VA should provide care 
within the State whenever possible rather than transferring 
patients to the West Coast for acute care services, which is 
extremely inconvenient for veterans and their families.
      The conferees have agreed to delete language carried in 
sec. 107 of the VA's administrative provisions limiting 
compensation payments to certain incompetent veterans.
      Amendment No. 14: Deletes language proposed by the Senate 
requiring the Secretary to develop a plan for the allocation of 
VA health care resources to remedy discrepancies in the 
allocation of funds to VA facilities across the country.
      The conferees are concerned that VA's allocation of 
resources has not resulted in equal access to health care 
services for veterans nationally. Despite implementation of the 
resource planning and management system several years ago, VA 
has not shifted resources sufficiently to meet changing demand.
      The conferees recognize the Veterans Health 
Administration recently reorganized into veterans integrated 
service networks and expect that the reorganization will result 
in a more equitable allocation of resources nationally. To 
ensure that this occurs, the conferees direct the Department to 
develop a plan to allocate resources in a manner that will 
result in equal access to medical care for veterans and will 
take into account projected changes in the workload of each 
facility. The plan should reflect the RPM system to account for 
forecasts in expected workload and should recognize facilities 
that provide cost-effective health care. The plan shall include 
procedures to identify reasons for variations in operating 
costs among similar facilities and ways to improve the 
allocation of resources so as to promote efficient use of 
resources and provision of high quality care.
      Amendment No. 15: Inserts language permitting the 
transfer of not to exceed $4,500,000 of 1996 medical care funds 
to the medical administration and miscellaneous operating 
expenses account, instead of $5,700,000 as proposed by the 
Senate.
      The conference agreement includes permissive transfer 
authority of up to $4,500,000 from the medical care account to 
the MAMOE account to help alleviate possible furloughs. The 
conferees wish to make clear, however, that any transfer is to 
occur only through the normal reprogramming procedures. It is 
expected that the central office medical staffing funded 
through this account will be reduced to 600 by the end of 
fiscal year 1996.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                            housing programs

      Amendment No. 16: Appropriates $10,155,795,000 for annual 
contributions for assisted housing, instead of $10,182,359,000 
as proposed by the House and $5,594,358,000 as proposed by the 
Senate. The conferees expect the Department and the Office of 
Management and Budget to adhere to the 1996 program detailed in 
the following table:

                 ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING FISCAL YEAR 1996--GROSS RESERVATIONS                 
----------------------------------------------------------------------------------------------------------------
                                                                 Units      Cost      Term     Budget authority 
----------------------------------------------------------------------------------------------------------------
New Authority................................................         NA        NA        NA    $10,155,795,000 
  New Spending:                                                                                                 
    Public Housing Modernization.............................         NA        NA        NA      2,500,000,000 
    Indian Housing...........................................      1,603    99,800        NA        160,000,000 
    Section 202 Elderly......................................      9,654      [NA]      [NA]        780,190,000 
    Section 811 Disabled.....................................      2,915      [NA]      [NA]        233,168,000 
    HOPWA....................................................      6,400      [NA]      [NA]        171,000,000 
    Section 7 Replacement Assistance.........................     35,398     5,650         2        400,000,000 
    [Witness Relocation].....................................         NA        NA        NA         [2,500,000]
    Preservation.............................................         NA        NA        NA        624,000,000 
    Property Disposition.....................................         NA        NA        NA        261,000,000 
    Lead-based Paint.........................................         NA        NA        NA         65,000,000 
    Family Self-Sufficiency..................................         NA        NA        NA  ..................
    Section 8 Contract Renewals..............................    435,028     5,680     \1\ 2      4,350,862,000 
    Section 8 Amendments.....................................         NA        NA        NA        610,575,000 
                                                              --------------------------------------------------
      Total..................................................    490,998        NA        NA     10,155,795,000 
----------------------------------------------------------------------------------------------------------------
\1\ Loan management setasides are renewed for one year.                                                         

      Including these funding levels, the House and Senate 
agree to the resolution of the following issues:
            Deletes language proposed by the House and stricken 
        by the Senate to establish an outlay cap of 
        $19,939,311,000 for the annual contributions for 
        assisted housing account.
            Provides $160,000,000 for Indian housing 
        development, instead of $100,000,000 as proposed by the 
        House and $200,000,000 as proposed by the Senate.
            Provides $2,500,000,000 for public housing 
        modernization as proposed by the House, instead of 
        $2,510,000,000 as proposed by the Senate.
            Deletes language proposed by the House and stricken 
        by the Senate to provide the Secretary authority to 
        direct any housing authority that receives 
        modernization funds under this Act, or has yet to 
        obligate rehabilitation funds from prior year 
        appropriations Acts, to demolish, reconfigure, or 
        reduce the density of any public housing project owned 
        by the housing authority.
            Deletes language proposed by the House and stricken 
        by the Senate to provide $15,000,000 for the tenant 
        opportunity program as a setaside from the public 
        housing modernization program. Funding for this 
        activity is provided as a separate setaside under the 
        community development block grant program.
            Inserts language proposed by the Senate to set 
        aside funds from the public housing modernization 
        program for technical assistance, but at a modified 
        funding level of $20,000,000, instead of $30,000,000 as 
        proposed.
            Provides $400,000,000 for section 8 rental 
        assistance, instead of $862,000,000 as proposed by the 
        House and $240,000,000 as proposed by the Senate.
            Inserts language proposed by the Senate to provide 
        such section 8 rental assistance under only certain 
        circumstances, including new language to allow funds to 
        be used for witness relocation assistance in 
        conjunction with the safe home initiative.
            Restores language proposed by the House and 
        stricken by the Senate to allow such section 8 rental 
        assistance to be used in connection with subsequent 
        authorizing legislation.
            Deletes appropriations language establishing a 
        special needs housing fund for multiple purposes as 
        proposed by the House.
            Provides $780,190,000 for section 202 elderly 
        housing as proposed by the Senate, instead of an 
        unspecified earmark as proposed by the House under the 
        special needs housing appropriation. Such funding will 
        assist 9,654 elderly households, the same number as 
        provided for in fiscal year 1995.
            Provides $233,168,000 for section 811 disabled 
        housing as proposed by the Senate, instead of an 
        unspecified earmark as proposed by the House under the 
        special needs housing appropriation. Such funding will 
        assist at least 2,915 disabled households, the number 
        as provided for in fiscal year 1995. The figure is 
        likely to be higher because language is added 
        permitting the Secretary to use up to 25 percent of the 
        funds provided to be used for section 8 vouchers to 
        serve the same population. Such assistance must have a 
        contract term of five years.
            Provides $171,000,000 for the housing opportunities 
        for person with AIDS program, instead of an unspecified 
        earmark as proposed by the House under the special 
        needs housing appropriation. Such funding will assist 
        6,400 households and matches the amount of funding 
        provided for in fiscal year 1995.
            Inserts language proposed by the House and agreed 
        to by the Senate to allow the Secretary to waive any 
        provision of the section 202 and 811 programs, 
        including the terms and conditions of project rental 
        assistance.
            Deletes language proposed by the House and stricken 
        by the Senate to allow the Secretary to use up to 
        $200,000,000 of unobligated carryover balances of the 
        annual contributions for assisted housing account to 
        implement preservation legislation enacted subsequent 
        to this Act.
            Provides $624,000,000 for the Emergency Low Income 
        Preservation Act of 1987, as amended, and the Low 
        Income Housing Preservation and Resident Homeownership 
        Act of 1990, as amended. Until July 1, 1996, such 
        funding will be limited to sales of projects to non-
        profit organizations, tenant-sponsored organizations, 
        and other priority purchasers. Up to $10,000,000 of 
        this amount will be available for preservation 
        technical assistance grants pursuant to section 253 of 
        the Housing and Community Development Act of 1987, as 
        amended. With respect to funds remaining available 
        after July 1, 1996, the Secretary may determine 
        priorities for distributing such funds, including 
        giving priority to tenants displaced due to mortgage 
        prepayment and to projects that have not yet been 
        funded but which have approved plans of action, if the 
        Secretary determines that demand for funding exceeds 
        amounts remaining. In addition, the Secretary may 
        impose a temporary moratorium on applications by 
        potential recipients of such funding.
      The legislation also provides owners the opportunity to 
prepay their mortgages or request voluntary termination of a 
mortgage insurance contract, as long as the owner agrees not to 
increase rents for 60 days after such prepayment. This 
condition is necessary in order to allow HUD time to make 
available rental assistance for eligible families who desire to 
stay or move.
      As a condition of eligibility for preservation funds 
under this Act, the legislation establishes a threshold of the 
lesser of $5,000 per unit, $500,000 per project, or eight times 
the local fair market rent for each unit in preservation 
equity. This is intended to direct federal resources at those 
projects with the greatest likelihood of prepayment.
      The Secretary also may modify the regulatory agreement to 
permit owners and priority purchasers to retain rental income 
in excess of the basic rental charge in projects assisted under 
section 236. In addition, the Secretary may give priority to 
funding obligated not later than August 1, 1996 for the 
following purposes: (1) projects with approved plans of action 
to retain the housing that file a modified plan of action not 
later than July 1, 1996 to transfer the housing; (2) projects 
with approved plans of action that are subject to a repayment 
or settlement agreement that was executed between the owner and 
the Secretary prior to September 1, 1995; (3) projects for 
which submissions were delayed as a result of their location in 
areas that were designated as a federal disaster area in a 
Presidential Disaster Declaration; and (4) projects that have 
submitted an appraisal to the New York State office.
      Notwithstanding any other provision of law, subject to 
the availability of appropriated funds, each unassisted low-
income family residing in the housing on the date of 
prepayment, and whose rent, as a result of prepayment exceeds 
30 percent of adjusted income, shall be offered tenant-based 
assistance in accordance with section 8 or any successor 
program, under which the family shall pay rent not less than 
rent paid on such date. Any eligible family receiving such 
tenant-based assistance may elect to remain in the housing and 
if the rent is in excess of the fair market rent or payment 
standard, as applicable, the rent shall be deemed the 
applicable standard, so long as the administering public 
housing agency deems that the rent is reasonable in comparison 
to rents charged for comparable unassisted housing units in the 
market. In instances where eligible families move with such 
assistance to other private rental housing, the rent will be 
subject to the fair market rent or the payment standard, as 
applicable, under existing rules and procedures.
      The resources provided by conferees under this Act for 
the preservation program ought not to be considered another 
payment in a long list of federal preservation program 
payments, but as the last payment for addressing preservation 
in this manner. Included in this section is a provision to 
effectively terminate the preservation program after October 1, 
1996. Unless this program is substantially reformed, Congress 
will appropriate only rental assistance for eligible residents 
of projects where owners have decided to prepay. Such 
assistance will allow residents to stay in the same housing at 
the same cost or move to other private housing.
            Provides $65,000,000 for lead-based paint 
        activities, including abatement grants, instead of 
        $10,000,000 as proposed by the House and $75,000,000 as 
        proposed by the Senate.
            Deletes $17,300,000 for family self-sufficiency 
        coordinators as proposed by the House and stricken by 
        the Senate. Such activities are eligible under the 
        public and assisted housing services setaside under the 
        community development block grant program.
            Provides $4,350,862,000 for the renewal of expiring 
        section 8 contracts, instead of $4,641,589,000 as 
        proposed by the House. The Senate had proposed 
        $4,350,862,000 for section 8 contract renewals under a 
        separate appropriations heading.
            Restores language proposed by the House and 
        stricken by the Senate to merge funds provided for 
        section 8 contract renewals with annual contributions 
        for assisted housing.
            The following table identifies expected section 8 
        contract renewal costs for fiscal year 1996:

                SECTION 8--RENEWAL OF EXPIRING CONTRACTS                
                         [Dollars in thousands]                         
------------------------------------------------------------------------
                                                                 1996   
                                                    Units       Budget  
                                                              authority 
------------------------------------------------------------------------
Certificates....................................    241,206   $2,993,597
Vouchers........................................     58,798      729,739
LMSA............................................    120,587      475,354
Property Disposition............................      4,464       35,194
Moderate Rehabilitation.........................      8,016       99,486
New Construction/Substantial Rehabilitation.....      1,957       17,492
                                                 -----------------------
      Total.....................................    435,028    4,350,862
------------------------------------------------------------------------
Note: Totals may not add due to rounding.                               


            Restores language proposed by the House and 
        stricken by the Senate to allow the use of section 8 
        contract renewal funds with subsequently enacted 
        legislation.
            Inserts language to allow the Secretary to renew 
        housing vouchers without regard to section 8(o)(6)(B) 
        of the Housing Act of 1937, a provision requiring HUD 
        to budget an additional 10 percent to cover long-term 
        inflation adjustments for housing vouchers. The Senate 
        had proposed identical language under its separate 
        heading for section 8 contract renewals.
            Provides $610,575,000 for section 8 contract 
        amendments as proposed by the House, instead of 
        $500,000,000 as proposed by the Senate.
            Provides $261,000,000 for property disposition as 
        proposed by the Senate, instead of no funding as 
        proposed by the House.
            Inserts language proposed by the Senate to allow 
        the Secretary to manage and dispose of multifamily 
        properties owned by HUD and multifamily mortgages held 
        by HUD without regard to any other provision of law.
            Inserts language proposed by the Senate to allow 
        state housing finance agencies, local governments, or 
        local housing agencies to keep 50 percent of the 
        savings from refinancing housing projects, as specified 
        under section 1012(a) of the Stewart B. McKinney 
        Homeless Assistance Act of 1988. The other 50 percent 
        of budget authority savings shall be rescinded, or in 
        the case of cash, remitted to the U.S. Treasury.
            Provides $280,000,000 for the public housing 
        demolition, site revitalization, and replacement 
        housing grants program. The Senate proposed 
        $500,000,000 for this activity and the House nothing.
            Inserts language identifying eligible uses of these 
        funds, as proposed by the Senate. Conferees agree funds 
        are needed to assist housing authorities in the 
        demolition of obsolete public housing. However, the 
        conferees are concerned about the Department's use of 
        waiver authority under the Department's total 
        development cost (TDC) controls. Upon waiving such 
        controls, the conferees direct the Department to notify 
        the appropriate committees of Congress.
            Deletes separate appropriation for the assistance 
        for the renewal of expiring section 8 subsidy contracts 
        as proposed by the Senate and all other language under 
        this heading.
      Amendment No. 17: Appropriates $2,800,000,000 for 
payments for the operation of public housing projects as 
proposed by the Senate, instead of $2,500,000,000 as proposed 
by the House.
      The conferees are concerned that the funding formula 
applied to Puerto Rico, which has always been excluded from the 
Performance Funding System (PFS) under the operating expense 
subsidy program of the U.S. Housing Act of 1937, may have led 
to the inequitable treatment for Puerto Rico as compared to the 
states, and even other non-PFS territories. Consistent with 
overall objectives of streamlining programs and funding, 
allowable expense levels (AELs) should be fairly and 
effectively allocated among all jurisdictions, both inside and 
outside the PFS system. The conferees encourage HUD to study 
the AEL formula for Puerto Rico to determine if it accurately 
reflects the actual costs to operate decent and affordable 
assisted housing in Puerto Rico.
      Amendment No. 18: Appropriates $290,000,000 for Drug 
Elimination Grants for Low-Income Housing as proposed by the 
Senate, instead of the proposed consolidation of these 
functions into the public housing modernization program as 
proposed by the House. Of this amount, the conferees earmark 
$10,000,000 for technical assistance grants and $2,500,000 for 
the Safe Home initiative. In addition, the conferees agree to 
language in the Senate bill that would redefine ``drug-related 
crime'' as determined by the HUD Secretary.
      In order to defer to the committees of jurisdiction, the 
conferees delete language proposed by the Senate to allow the 
Secretary to distribute Drug Elimination Grants funds through a 
formula allocation.
      Amendment No. 19: Deletes language proposed by the House 
and stricken by the Senate to provide $12,000,000 for housing 
counseling under a separate appropriations heading. Instead, 
$12,000,000 is provided for identical housing counseling 
activities as an earmark under the Community Development Block 
Grants program.
      Amendment No. 20: Deletes language proposed by the Senate 
on describing how homeless assistance funds will be 
distributed, including language permitting the Secretary to 
distribute homeless funds under a formula allocation.
      Amendment No. 21: Inserts technical correction to the 
language as proposed by the Senate.
      Amendment No. 22: Deletes language proposed by the House 
and stricken by the Senate to make eligible the Innovative 
Homeless Initiatives Demonstration program under Homeless 
Assistance Grants. The authorization for this initiative 
terminated the demonstration as of September 30, 1995.
      Amendment No. 23: Appropriates $823,000,000 for Homeless 
Assistance Grants, instead of $676,000,000 as proposed by the 
House and $760,000,000 as proposed by the Senate. This amount 
is equivalent to a funding freeze for homeless programs instead 
of a reduction. In fiscal year 1994, the appropriations for HUD 
homeless programs totaled $823,000,000. In fiscal year 1995, 
Public Law 104-19 deferred the availability of $297,000,000 of 
the original appropriations of $1,120,000,000 until September 
30, 1995, effectively reducing the fiscal year 1995 program 
level to $823,000,000.
      The conferees remain concerned that HUD homeless programs 
put too much emphasis on short-term solutions instead of long-
term comprehensive strategies. To the maximum extent 
practicable, the conferees direct the Department to allocate 
homeless assistance grants under the Shelter Plus Care program 
which requires a dollar-for-dollar match of services for HUD 
housing assistance. Homeless assistance of nearly 
$1,000,000,000 is small compared to the $120,000,000,000 of 
Federal service dollars that serve much of this same 
population. Homeless studies, such as the 1990 Annual Report of 
the Interagency Council on the Homeless, show that housing in 
combination with appropriate services is the most effective way 
of permanently reducing homelessness. The conferees recognize 
that a one-size-fits-all approach does not recognize the 
diversity among communities and the diverse needs of the 
homeless population.
      Amendment No. 24: Deletes language proposed by the Senate 
to allow Homeless Assistance Grants to be distributed by 
formula in fiscal year 1996. The conferees defer to the 
authorizing committees to determine an adequate program formula 
over the coming months. Language is also deleted requiring the 
Secretary to complete a study on how to merge homeless 
assistance programs under the Stewart B. McKinney Homeless 
Assistance Act with the HOME program.
      Amendment No. 25: Appropriates $50,000,000 for grants to 
Indian tribes instead of $46,000,000 as proposed by the House 
and $60,000,000 as proposed by the Senate.
      Amendment No. 26: Inserts language proposed by the Senate 
to provide $2,000,000 for the Housing Assistance Council and 
$1,000,000 for the National American Indian Housing Council as 
setasides under the Community Development Block Grants program. 
The House had proposed funding these two councils at the same 
level as setasides under the HUD salaries and expenses account.
      Amendment No. 27: Appropriates $27,000,000 for Section 
107 grants as proposed by the Senate instead of $19,500,000 as 
proposed by the House. The conferees are in agreement that 
Section 107 funding includes $7,000,000 for insular areas, 
$6,000,000 for work study (including $3,000,000 for Hispanic-
serving institutions), $6,500,000 for historically black 
colleges and universities (HBCUs), and $7,500,000 for the 
community outreach partnership program.
      The conferees urge HUD to use community outreach 
partnership funds to support new and existing planning grants 
to universities located in and around urban areas with high 
minority populations, low standards of living and large numbers 
of empty or abandoned dwellings. Priority ought to be given to 
proposals that seek to address community problems 
comprehensively and in partnership with local government, and 
consideration should be made for projects which include HBCUs 
as local partners.
      The conferees are aware of an innovative business 
development center proposal of Hofstra University which will 
coordinate and target educational and technical assistance 
activities designed to foster economic development and job 
creation on Long Island. This proposal mirrors the goals of the 
Community Outreach Partnership program and therefore the 
Department is urged to carefully review this proposal in 
connection with the funding recommended for this activity.
      Amendment No. 28: Inserts technical correction to the 
language as proposed by the Senate.
      Amendment No. 29: Inserts language proposed by the Senate 
to permanently extend homeownership activities as an eligible 
use of CDBG funds.
      Amendment No. 30: Inserts language proposed by the Senate 
to extend for one year a setaside for Colonias of up to 10% of 
state CDBG allocations for the U.S. border states of Arizona, 
California, New Mexico, and Texas.
      Amendment No. 31: Inserts language proposed by the Senate 
and amended by the House to provide $53,000,000 as a setaside 
from the CDBG program for pubic and assisted housing supportive 
services. The amended language also earmarks $15,000,000 for 
the Tenant Opportunity Program, $12,000,000 for Housing 
Counseling activities, and $20,000,000 for the Youthbuild 
program. With regard to the Tenant Opportunity Program, this 
setaside represents a 40 percent reduction from last year's 
funded level of $25,000,000. The conferees have been made aware 
of recent abuses in this program and direct the Department to 
eliminate such abuses if the program is to receive additional 
funding. Conferees agree this is the last year of 
appropriations funding for Youthbuild as a separate earmark and 
anticipate that Youthbuild will become an eligible activity 
under CDBG or another block grant in the coming year, to be 
determined by the appropriate authorizing committees. The 
conferees delete funding proposed by the Senate for Economic 
Development Initiatives at $80,000,000.
      Amendment No. 32: Appropriates $31,750,000 for credit 
subsidies for the Section 108 loan guarantee program, instead 
of $15,750,000 as proposed by the Senate and $10,500,000 as 
proposed by the House.
      Amendment No. 33: Establishes a loan limitation of 
$1,500,000,000 for the Section 108 loan guarantee program as 
proposed by the Senate, instead of $1,000,000,000 as proposed 
by the House and inserts language to waive the aggregate loan 
limitation.
      Amendment No. 34: Appropriates $675,000 for 
administrative expenses of the Section 108 loan guarantee 
program as proposed by the Senate, instead of $225,000 as 
proposed by the House.
      Amendment No. 35: Inserts language for the reuse of a 
grant for Buffalo, New York for the central terminal and other 
public facilities in Buffalo, New York.
      Amendment No. 36: Appropriates $30,000,000 for fair 
housing activities to be operated by HUD, instead of providing 
$30,000,000 for these activities to be funded under the 
Department of Justice, as proposed by the Senate. Language is 
added to limit eligibility under the fair housing initiatives 
program (FHIP) to only qualified fair housing enforcement 
organizations, as proposed by the Senate. The House and Senate 
conferees strongly support the enforcement of fair housing 
laws, but are concerned that FHIP funds have been used by non-
traditional fair housing groups in a manner that is 
inconsistent with the program's intent to enforce fair housing 
laws. The conferees direct the Department to provide the 
Committees on Appropriations an opportunity to review the new 
standard of qualified fair housing organizations prior to 
awarding fiscal year 1996 FHIP funds. The House had proposed 
$30,000,000 for fair housing activities, but only for the fair 
housing program (FHAP).
      Amendment No. 37: Appropriates $962,558,000 for salaries 
and expenses, instead of $951,988,000 as proposed by the House 
and $980,777,000 as proposed by the Senate. The Department is 
to distribute the general reduction, subject to normal 
reprogramming guidelines. In addition, the conferees direct the 
Department to outline when and how future staffing reductions 
will occur to meet the Administration's goal of 7,500 HUD 
employees by fiscal year 2000. To the extent reductions are 
needed to take place in fiscal year 1996 to meet fiscal year 
2000 staffing goals, the conferees urge the Department to 
utilize early in the fiscal year any resources needed to 
achieve such purpose.
      Amendment No. 38: Authorizes the use of $532,782,000 for 
salaries and expenses from the various funds of the Federal 
Housing Administration as proposed by the Senate, instead of 
$505,745,000 as proposed by the House.
      Amendment No. 39: Authorizes the use of $9,101,000 for 
salaries and expenses from the funds of the Government National 
Mortgage Association as proposed by the Senate, instead of 
$8,824,000 as proposed by the House.
      Amendment No. 40: Authorizes the use of $675,000 for 
salaries and expenses from the Community Development Grants 
program account as proposed by the Senate, instead of $225,000 
as proposed by the House.
      Amendment No. 41: Appropriates $47,850,000 for salaries 
and expenses of the Office of Inspector General, instead of 
$47,388,000 as proposed by the House and $48,251,000 as 
proposed by the Senate.
      Amendment No. 42: Authorizes the use of $11,283,000 for 
salaries and expenses of the Office of Inspector General from 
the various funds of the Federal Housing Administration as 
proposed by the Senate, instead of $10,961,000 as proposed by 
the House.
      Amendment No. 43: Restores language proposed by the House 
and deleted by the Senate to appropriate $14,895,000 for the 
Office of Federal Housing Enterprise Oversight (OFHEO).
      Amendment No. 44: Inserts language proposed by the Senate 
to allow the Secretary to sell up to $4,000,000,000 of assigned 
mortgage notes under the FHA Mutual Mortgage Insurance (FHA-
MMI) program account and use any negative credit subsidy 
amounts from such sales during fiscal year 1996 for the 
disposition of properties or notes under the FHA-MMI program.
      Amendment No. 45: Appropriates $341,595,000 for 
administrative expenses of the guaranteed and direct loan 
programs of the FHA-MMI program account as proposed by the 
Senate, instead of $308,846,000 as proposed by the House.
      Amendment No. 46: Authorizes the transfer of $334,483,000 
for departmental salaries and expenses from the FHA-MMI program 
account as proposed by the Senate, instead of $308,290,000 as 
proposed by the House.
      Amendment No. 47: Authorizes the transfer of $7,112,000 
for the Office of Inspector General from the FHA-MMI program 
account as proposed by the Senate, instead of $6,790,000 as 
proposed by the House.
      Amendment No. 48: Appropriates $85,000,000 for credit 
subsidies under the FHA-General and Special Risk Insurance 
(FHA-GI/SRI) program account, as authorized by Sections 238 and 
519 of the National Housing Act, instead of $100,000,000 as 
proposed by Senate. It is the understanding of the conferees 
that when these funds are combined with new statutory authority 
to use net asset sales proceeds for additional credit 
subsidies, the combined program level will exceed $100,000,000. 
Under a different proviso stricken by the Senate, the House 
proposed $69,620,000 for these activities.
      Amendment No. 49: Inserts technical correction to the 
language as proposed by the Senate.
      Amendment No. 50: Establishes guarantee loan limitation 
of $17,400,000,000 as proposed by the Senate, instead of 
$15,000,000,000 as proposed by the House.
      Amendment No. 51: Inserts language proposed by the Senate 
to authorize the sale of up to $4,000,000,000 of assigned notes 
under the FHA-GI/SRI program account. Under a separate proviso 
stricken by the Senate, the House had proposed the sale of 
$2,400,000,000 of such notes. Also inserts language proposed by 
the Senate to allow the use of any negative credit subsidy from 
such sales to offset new FHA-GI/SRI guarantee activity. A 
separate House provision stricken by the Senate contained 
similar language on the reuse of negative credit subsidies.
      Amendment No. 52: Inserts language proposed by the Senate 
to allow funds previously appropriated to remain available 
until expended if such funds have not been obligated. The House 
language stricken by the Senate extended the availability of 
such funds if they had not been previously made available for 
obligation.
      Amendment No. 53: Deletes language proposed by the House 
and stricken by the Senate to reuse negative credit subsidies 
from the sale of FHA-MI/SRI assigned notes for new loan 
guarantee credit subsidies under the same account. Also deletes 
House language establishing a cap of $2,600,000,000 on the 
amount of such sales, a limitation on the availability of 
$52,000,000 of excess proceeds from such sales, and an 
appropriation of $69,620,000 for credit subsidies.
      Amendment No. 54: Appropriates $202,470,000 for 
administrative expenses of the guaranteed and direct loan 
programs of the FHA-GI/SRI program account as proposed by the 
Senate, instead of $197,470,000 as proposed by the House.
      Amendment No. 55: Authorizes the transfer of $198,299,000 
for departmental salaries and expenses from the FHA-GI/SRI 
program account as proposed by the Senate, instead of 
$197,455,000 as proposed by the House.
      Amendment No. 56: Appropriates $9,101,000 for 
administrative expenses of the Government National Mortgage 
Association (GNMA) guaranteed mortgage-backed securities 
program as proposed by the Senate, instead of $8,824,000 as 
proposed by the House.
      Amendment No. 57: Authorizes the transfer of $9,101,000 
for departmental salaries and expenses from the GNMA mortgage-
backed securities guaranteed loan receipt account as proposed 
by the Senate, instead of $8,824,000 as proposed by the House.

                       administrative provisions

      Amendment No. 58: Inserts administrative provisions 
agreed to by the conferees. These provisions, identified by 
section number, are as follows:
      Sec. 201. Extend Administrative Provisions from the 
Rescission Act. Inserts language proposed by the Senate to 
modify and extend the applicability of language affecting the 
public housing modernization program and the public housing 
one-for-one replacement requirement first enacted in Public Law 
104-19. The House proposed similar language to suspend the one-
for-one replacement requirement for fiscal year 1996.
      Sec. 202. Public and Assisted Housing Rents, Income 
Adjustments, and Preferences. (a) Minimum Rent. Inserts 
language to establish minimum rents at $25 per month per 
household and up to $50 per month at the discretion of the 
public housing authority (PHA). (b) Ceiling Rents. Also 
establishes a second calculation of ceiling rents that reflect 
reasonable market value of the housing but are not less than 
the monthly operating costs and, at the discretion of the PHA, 
contribution to a replacement reserve. (c) Definition of 
Adjusted Income. Allows PHAs to adopt separate income 
adjustments from those currently established under the Housing 
Act of 1937. However, the Secretary shall not take into account 
any reduction of the per unit dwelling rental income when 
calculating federal subsidies under the public housing 
operating subsidies program. (d) Preferences. Suspends federal 
preferences for the public and assisted housing programs. (e) 
Applicability. Extends the applicability of subsections (a), 
(b), (c), and (d) to Indian housing programs. (f) Limits the 
application of this section to fiscal year 1996 only.
      Sec. 203. Conversion of Certain Public Housing to 
Vouchers. Establishes criteria for identifying public housing 
to be converted to voucher assistance, rules for implementation 
and enforcement, and a process for removing units from the 
public housing inventory and converting federal assistance to 
vouchers. Section 18 of the Housing Act of 1937 shall not apply 
to the demolition of developments under this section.
      Sec. 204. Streamlining Section 8 Tenant-Based Assistance. 
(a) Suspends for fiscal year 1996 the ``take one, take all'' 
requirement, section 8(t) of the Housing Act of 1937. (b) 
Suspends for fiscal year 1996 certain notice requirements for 
owners participating in the certificate and voucher programs. 
(c) In addition, this provision suspends for fiscal year 1996 
the ``endless lease'' requirement under section 8(d)(1)(B).
      Sec. 205. Section 8 Fair Market Rentals, Administrative 
Fees, and Delay in Reissuance. (a) Establishes fair market 
rentals at the 40th percentile of modest cost existing housing 
instead of the current 45th percentile calculation. (b) 
Modifies provision to provide administrative fees equivalent to 
7.65 percent of the local FMR for up to 600 units of tenant-
based assistance administered by a public housing agency and 7 
percent of the local FMR for each additional unit. (c) Delays 
the reissuance of section 8 vouchers and certificates by three 
months. The Administration originally proposed similar 
proposals in its fiscal year 1996 budget. Both the House and 
Senate are in agreement on these new policy directions.
      Sec. 206. Public Housing/Section 8 Moving to Work 
Demonstration. Establishes a demonstration of no more than 30 
public housing authorities to reduce cost and achieve greater 
cost-effectiveness in federal expenditures, to provide 
incentives for heads of households to become economically self-
sufficient, and to increase housing choices for lower-income 
families. The demonstration may include no more than 25,000 
public housing units.
      Sec. 207. Repeal of Provisions Regarding Income 
Disregards. Repeals section 957 of the Cranston-Gonzalez 
National Affordable Housing Act and section 923 of the Housing 
and Community Development Act of 1992.
      Sec. 208. Extension of Multifamily Housing Finance 
Programs. Extends sections 542(b)(5) and 542(c)(4) as proposed 
by the House and Senate.
      Sec. 209. Foreclosure of HUD-held Mortgages Through Third 
Parties. During fiscal year 1996, allows the Secretary to 
delegate some or all of the functions and responsibilities in 
connection with the foreclosure of mortgages held by HUD under 
the National Housing Act.
      Sec. 210. Restructuring of the HUD Multifamily Mortgage 
Portfolio Through State Housing Finance Agencies. During fiscal 
year 1996, allows the Secretary to sell or transfer multifamily 
mortgages held by the Secretary under the National Housing Act 
to a State housing finance agency.
      Sec. 211. Transfer of Section 8 Authority. Allows the 
Secretary to use section 8 budget authority that becomes 
available because of the termination of a project-based 
assistance contract to provide continued assistance to eligible 
families. Section 8 renewal assistance may be used for the same 
purpose at the time of contract expiration.
      Sec. 212. Documentation of Multifamily Refinancings. 
Extends through fiscal year 1996 and thereafter, the amendments 
to section 223(a)(7) of the National Housing Act included in 
Public Law 103-327.
      Sec. 213. FHA Multifamily Demonstration. Establishes a 
demonstration to review the feasibility and desirability of 
``marking-to-market'' the debt service and operating expenses 
attributable to HUD multifamily projects which can be supported 
with or without mortgage insurance under the National Housing 
Act and with or without above-market rents utilizing project-
based or tenant-based assistance. Such demonstration is limited 
to 15,000 units over fiscal years 1996 and 1997. The provision 
also appropriates $30,000,000 as a credit subsidy for such 
activities.
      Sec. 214. Section 8 Contract Renewals. Inserts language 
to limit the cost of section 8 contract renewals to the fair 
market rent (FMR) for the area, similar to language proposed by 
the House. In addition, language is added to make clear that 
the Secretary shall, at the request of the owner, renew 
expiring section 8 contracts for one year under the same terms 
and conditions as the expiring contract during fiscal year 
1996. On October 1, 1996, additional expiring contracts will be 
subject to the local FMR. This language clarifies existing law 
with respect to renewal of these project-based subsidy 
contracts, and highlights the urgency of affirmative action by 
the authorizing committees in enacting legislation necessary to 
avoid loss of affordable housing and potential displacement of 
residents next fiscal year.
      This section also amends the provisions of law requiring 
renewal of loan management setaside contracts to provide the 
Secretary the discretion to renew only that portion of expiring 
contracts necessary to avoid displacement of residents who have 
been previously assisted. Budgetary constraints will make 
continuing these rental subsidy contracts very difficult over 
the next several years and it is highly advisable that project 
owners reduce dependence on such project-based subsidies as 
such assisted residents voluntarily leave these developments.
      Finally, this section amends the rental payment standards 
applicable to housing projects under section 236 of the 
National Housing Act to encourage the retention of working 
families in these developments by preventing rental charges in 
these projects which may exceed actual market rates in certain 
localities.
      Sec. 215. Extension of Home Equity Conversion Mortgage 
Program. Extends demonstration through fiscal year 1996, 
increasing the maximum number of units insured from 25,000 to 
30,000.
      Sec. 216. Assessment Collection Dates for Office of 
Federal Housing Enterprise Oversight (OFHEO). Modifies OFHEO 
assessment collection dates to allow revenues to match the 
timing of expenditures.
      Sec. 217. Merger Language for Assistance for the Renewal 
of Expiring Section 8 Subsidy Contracts and Annual 
Contributions for Assisted Housing. Merges the section 8 
renewal account with annual contributions for assisted housing, 
as proposed by the House. This will allow a more accurate 
assessment of the ongoing commitment to affordable housing by 
the 104th Congress. More than 400,000 families will be assisted 
with funds provided under the Annual Contributions for Assisted 
Housing account in fiscal year 1996. Altogether, 4.5 million 
households will receive HUD assistance in fiscal year 1996.
      Sec. 218. Debt Forgiveness. Inserts language to forgive 
public facilities loans in Hubbard and Groveton, Texas and 
Hepzibah, West Virginia. These loans were previously written 
off as uncollectible and will not increase the federal debt. In 
addition, the conferees direct the Department of Housing and 
Urban Development to work with the Rend Lake Conservancy 
District, Illinois, to resolve its indebtedness under the 
Public Facilities Loan program.
      Sec. 219. Clarifications. Inserts language to clarify 
``continuum of care'' requirements as applied to the Paul 
Mirabile Center in San Diego, California.
      Sec. 220. Employment Limitations. Limits the number of 
Assistant Secretaries at the Department to 7, the number of 
schedule C employees to 77, and the number of noncareer Senior 
Executive Service positions to 20. Such limitations are to be 
met by the end of fiscal year 1996.
      Sec. 221. Use of Funds. Allows previously appropriated 
funds for Highland, California, and Toledo, Ohio, to be used in 
their respective communities for other purposes.
      Sec. 222. Lead-based Paint Abatement. Amends eligible 
housing criteria under section 1011 of the Residential Lead-
Based Paint Hazard Reduction Act of 1992.
      Sec. 223. Extension Period for Sharing Utility Cost 
Savings with PHAs. Eliminates time restriction for sharing 
utility cost savings under section 9(a)(3)(B)(i) of the Housing 
Act of 1937.
      Sec. 223A. Mortgage Note Sales. Extends for fiscal year 
1996 mortgage sales under section 221(g)(4)(C)(viii) of the 
National Housing Act.
      Sec. 223B. Repeal of Frost-Leland. This provision repeals 
section 415 of the VA, HUD, and Independent Agencies 
Appropriations Act for fiscal year 1988. The Dallas Housing 
Authority and the Housing Authority of the City of Houston may 
proceed with demolitions and revitalization of George Loving 
Place and Allen Parkway Village, respectively. In addition, the 
conferees have learned that the demolition of Allen Parkway 
Village, a large densely organized public housing project in 
Houston, Texas, which has been substantially vacant for over a 
decade, is being delayed by the section 106 process under the 
National Historic Preservation Act of 1966. The conferees 
believe that preservation of historic buildings is an admirable 
goal. However, the conferees do not believe that it is good 
policy to require the preservation of buildings unsuitable for 
modern family life at the expense of low income families in 
dire need of safe, decent, and affordable housing.
      Sec. 223C. FHA Single-Family Assignment Program Reform. 
Reforms the assignment process of the Federal Housing 
Administration to reflect cost-savings achieved in the private 
sector for working out delinquent loans to avoid foreclosure 
and minimizing losses to the mortgage insurer.
      Sec. 223D. Spending Limitations. (1) Property Insurance. 
The conferees recognize that property insurance is essential to 
financing and insuring housing under the National Housing Act. 
The Department is in the process of promulgating regulations 
under the Fair Housing Act regarding discriminatory practices 
in property insurance activities. Certain courts have ruled 
upholding the application of the Fair Housing Act to property 
insurance. However, significant questions have been raised 
relative to HUD's jurisdiction in this regard, especially in 
light of the McCarran-Ferguson Act, which reserves to the 
States authority to regulate insurance matters, and the Fair 
Housing Act, which makes no mention of discriminating in 
providing property insurance.
      Given the uncertainty and controversy over this issue, it 
is the consensus that this important issue should be promptly 
addressed by the legislative committees of jurisdiction so that 
a clear statutory basis of regulation can be provided, and 
effective anti-discrimination regulation of insurance 
activities enforced.
      (2) Prohibition on penalties or sanctions against 
communities that adopt english as the official language. The 
conferees are concerned that communities across the United 
States feel it necessary to adopt State or local law or 
regulations to declare English the official language. While 
English ought to be an essential part of the American 
experience, the conferees do not oppose bilingual education and 
recognize the importance of such education efforts in order to 
met the needs of an increasing population of immigrants and 
others, who in too many cases, are economically disadvantaged. 
The real need for Americans is to communicate fully with one 
another. To the extent English is chosen in individual 
communities as the main language, HUD ought not to punish or 
impose sanctions because of this action.
      (3) Lobbying prohibition. Prohibits funds provided under 
this Act from being used for purposes not authorized by the 
Congress.
      (4) RESPA. The conference agreement does not include 
language prohibiting the expenditure of funds to promulgate 
regulations based upon the July 21, 1994 proposed rule on the 
Real Estate Settlement Procedures Act (RESPA). However, the 
conferees are concerned that HUD has been interpreting RESPA in 
a manner that may stifle competition and the development of 
innovative services in the settlement services industry. Before 
proceeding to finalize such rulemaking, the conferees urge the 
Department to seek additional guidance on this important issue 
from the appropriate authorizing committees.
      (5) Land use regulations for residential care. 
Communities across the country have expressed serious concerns 
with fair housing law as it relates to their ability to review 
and implement land use regulations for residential care 
facilities. The conferees encourage the Department to work with 
the relevant authorizing committees to develop legislative 
remedies for these concerns as soon as possible.
      Sec. 223E. Transfer of Functions to the Department of 
Justice. Language is inserted to transfer fair housing 
activities to the Department of Justice effective April 1, 
1997. A similar provision was proposed by the Senate in 
amendment numbered 111. This transfer would include all 
responsibilities for fair housing issues, including 
administering the Fair Housing Assistance Program (FHAP) and 
the Fair Housing Initiatives Program (FHIP). This 18-month 
transition would give the Department of Justice adequate time 
to ensure a smooth transfer of all functions. Congress would 
also have an opportunity to review key implementation issues.
      The conferees emphasize that the intent of this provision 
is not to minimize the importance of addressing housing 
discrimination in this nation; instead, the Department of 
Justice with its own significant (and primary) responsibilities 
to address all forms of discrimination represents the 
appropriate place to consolidate and to provide consistency in 
policy direction for the federal government to combat 
discrimination, including discrimination with regard to housing 
issues.
      While many members of Congress are advocating the 
elimination of HUD, the transfer of HUD's fair housing programs 
to the Department of Justice will allow HUD to refocus on its 
primary responsibilities of providing housing and community 
development assistance. The larger issue of determining the 
fate of HUD is better suited for the authorizing committees of 
the House and Senate.
      Amendment No. 59: Inserts language proposed by the Senate 
to prohibit the expenditure of funds under this Act for the 
investigation or prosecution under the Fair Housing Act of any 
otherwise lawful activity, including the filing or maintaining 
of non-frivolous legal action, that is engaged in solely for 
the purposes of achieving or preventing action by a Government 
official, entity, or court of competent jurisdiction.
      Amendment No. 60: Inserts language proposed by the Senate 
to prohibit the use of funds under this Act to take enforcement 
action under the Fair Housing Act on the basis of familial 
status and which involves an occupancy standard except under 
the occupancy standards established by the March 20, 1991 
Memorandum from the General Counsel of HUD to all Regional 
Counsel, or until such time as HUD issues a final rule on 
occupancy standards in accordance with standard rulemaking.
      Amendment No. 61: Inserts language proposed by the Senate 
to allow reconstruction or rehabilitation costs as eligible 
activities for the expenditure of Community Development Block 
Grant funds, not just reconstruction and rehabilitation costs 
in conjunction with acquisition costs.
      Amendment No. 62: Deletes language proposed by the Senate 
requiring HUD to submit a report to Congress on the extent 
federal funds are used to facilitate the closing or substantial 
reduction of operations of a plant that result in the 
relocation or expansion of a plant from one state to another. 
Instead, conferees direct HUD to review available data on this 
issue and report to Congress the costs and benefits of 
establishing such a database.

                    TITLE III--INDEPENDENT AGENCIES

                   Consumer Product Safety Commission

      The conferees agree to provide $40,000,000 for the 
Consumer Product Safety Commission, a reduction of $4,000,000 
from the budget request. The conferees direct the Commission to 
make the necessary reduction in expenditures from among 
operating expenses, including contract services, overhead 
accounts such as space, rent, telephone and travel and by delay 
in filling vacant positions.

             corporation for national and community service

      Amendment No. 63: Reported in disagreement.

                       court of veterans appeals

      The bill provides $9,000,000 for the Court of Veterans 
Appeals. The funding level for this agency is not in conference 
because the recommended amount in the bill was identical as it 
passed both the House and the Senate. Because of concerns 
expressed with this level of funding, the conferees intend that 
the Committee on Appropriations review the benefits of the 
Court and how it can best operate in a constrained budget 
environment. It may be that the authorizing committees will 
also want to review these matters.

                      Department of Defense--Civil

                       cemeterial expenses, army

      Amendment No. 64: Appropriates $11,946,000 for salaries 
and expenses as proposed by the Senate, instead of $11,296,000 
as proposed by the House.

                    Environmental Protection Agency

                         science and technology

      Amendment No. 65: Appropriates $525,000,000 for science 
and technology activities instead of $500,000,000 as proposed 
by the Senate and $384,052,000 under research and development 
as proposed by the House. The research and development account 
as proposed by the House and stricken by the Senate is deleted 
and a new science and technology account is adopted in lieu 
thereof.
      The new science and technology account has been created 
to begin the consolidation of all research related activities 
at EPA, including appropriate personnel and laboratory costs. 
The conferees note that Environmental Service Division (ESD) 
labs have not been brought under this account at this time, 
however, the Agency is expected to provide an analysis of 
whether ESD labs, as well as other research related activities, 
should be included in this account in the fiscal year 1997 
budget.
      The conferees recognize that with the new account 
structure, EPA has additional flexibility to manage its 
resources. The conferees wish to make clear, however, that EPA 
is not to apply budgetary reductions disproportionately to 
contracts relative to the workforce. The agency must plan for 
further budgetary reductions anticipated in the outyears by 
gradually reducing its workforce, and the account structure is 
intended in part to ease the difficulties and disruption 
associated with downsizing the workforce. Any reprogramming of 
funds that become necessary throughout the fiscal year is to be 
made upon the notification and approval of the Committees on 
Appropriations.
      The conferees are in agreement with the following changes 
to the budget request:
            +$150,000,000 for research and development 
        personnel costs transferred from the former program and 
        research operations account.
            +$35,000,000 for laboratory and facilities costs 
        transferred from the former abatement, control, and 
        compliance account.
            +$500,000 for the National Urban Air Toxics 
        Research Center.
            +$2,500,000 for the Gulf Coast Hazardous Substance 
        Research Center.
            +$1,500,000 for the Water Environment Research 
        Foundation.
            +$2,500,000 for the American Water Works 
        Association Research Foundation (AWWARF).
            +$730,000 for continued study of livestock and 
        agricultural pollution abatement.
            +$1,000,000 for continuation of the San Joaquin 
        Valley PM-10 study.
            +$2,000,000 to continue research on urban waste 
        management at the University of New Orleans.
            +$1,500,000 for the Resource and Agricultural 
        Policy Systems program at Iowa State University.
            +$500,000 for oil spill remediation research at the 
        Spill Remediation Research Center.
            +$1,000,000 for research on the health effects of 
        arsenic. In conducting this research, the Agency is 
        strongly encouraged to contract with groups such as the 
        AWWARF so that funds can be leveraged to maximize 
        available research dollars.
            +$1,000,000 for the Center for Air Toxics Metals.
            +$1,000,000 for the EPSCoR program.
            +$18,000,000 for research and development 
        transferred from the hazardous substance superfund 
        account, including $5,000,000 for the hazardous 
        substance research center program. The conferees agree 
        that most research being conducted under the Superfund 
        account has application across media lines and thus 
        should be carried forward in a manner consistent with 
        all other Agency research and development activities. 
        With this transfer, the conferees have included a total 
        of $20,500,000 for Superfund research in the new 
        science and technology account, including $2,500,000 
        for the Gulf Coast Hazardous Substance Research Center. 
        This represents a further step in consolidating all 
        agency research within this account. Should the amount 
        provided for Superfund research be insufficient, the 
        Committees on Appropriations would entertain an 
        appropriate reprogramming request from the agency. The 
        conferees expect EPA to conform its fiscal year 1997 
        budget submission to this account restructuring, 
        including Superfund research.
            -$69,200,000 from the Environmental Technology 
        Initiative. Remaining funds in this program are to be 
        used for technology verification activities, and the 
        agency is expected to submit a spending plan for this 
        activity as part of its annual operating plan.
            -$31,645,700 from the Working Capital Fund included 
        in the budget request. This new fund has not been 
        approved for fiscal year 1996, however, the conferees 
        are generally receptive to the philosophy behind the 
        adoption of such a fund and expect to work closely with 
        the agency throughout the fiscal year to develop a 
        proposal for consideration for fiscal year 1997.
            -$19,545,300 as a general reduction, subject to 
        normal reprogramming guidelines.
      The conferees have deleted Senate bill language contained 
in amendment number 92 related to EPA research and development 
activities and staffing. However, the conferees agree that EPA 
has not provided adequate information to the Congress regarding 
its new Science to Achieve Results (STAR) initiative including 
its purpose; the effects it might have on applied research 
needed to support the agency's regulatory activities; the 
impact on current staffing, cooperative agreements, grants, and 
support contracts; whether STAR will duplicate the work of 
other entities such as the National Science Foundation; and how 
STAR relates to the strategic plan of the Office of Research 
and Development. Therefore, the agency is directed to submit by 
January 1, 1996 a report to address these issues. The report 
also should identify the amount of funds to be spent on STAR, 
and a listing of any resource reductions below fiscal year 1995 
funding levels, by laboratory, from federal staffing, 
cooperative agreements, grants, or support contracts as a 
result of funding for the STAR program. No funds should be 
obligated for the STAR program until the Committees are in 
receipt of the report.
      The conferees direct EPA to discontinue any additional 
hiring under the contractor conversion program in the Office of 
Research and Development (ORD) and provide to the Committees by 
January 1, 1996, a staffing plan for ORD indicating the use of 
federal and contract employees.
      As part of the peer review process of research 
activities, the conferees expect ORD to place more reliance on 
oversight and review of its ongoing research by the Science 
Advisory Board. The conferees agree that better use of the 
Board in such an oversight and review role will greatly enhance 
the credibility of the ``science'' conducted by EPA in support 
of program activities.
      Finally, the conferees note that funds deleted by the 
House for the Gulf of Mexico Program (GMP) have been fully 
restored. While the conferees thus support its continuation for 
fiscal year 1996, there nevertheless remain concerns regarding 
the current scope, cost, and long term direction the agency has 
planned for this program. Precious little information is 
presented through budget justifications in support of the GMP, 
yet it has enjoyed financial support through the EPA, as well 
as significant contributions from numerous other federal and 
state sources. The conferees expect the agency to perform a 
thorough study and evaluation of this program and its total 
expenditures, from all sources, and include such information in 
the fiscal year 1997 budget support documents.

                 environmental programs and management

      Amendment No. 66: Appropriates $1,550,300,000 for 
environmental progams and management instead of $1,670,000,000 
under program administration and management as proposed by the 
Senate and $1,881,614,000 under environmental programs and 
compliance as proposed by the House. The environmental programs 
and compliance account as proposed by the House and stricken by 
the Senate is deleted and a new account is adopted in lieu 
thereof.
      The new account combines most of what were formerly the 
abatement, control, and compliance and program and research 
operations accounts, thus providing the Agency with increased 
flexibility to meet personnel and program requirements within 
the framework of reduced financial resources. As noted under 
the science and technology account, personnel and laboratory 
costs associated with research activities have been reduced 
from the budget request under the aforementioned two accounts. 
Additionally, state categorical grants proposed in the budget 
request under abatement, control, and compliance have been 
moved to the new state and tribal assistance grant account.
      In addition to providing flexibility across program 
lines, the actions of the conferees in approving such 
structural changes also are due to the necessity of the agency 
to make substantial changes in the manner in which it carries 
out its mission. It must be recognized that there simply are 
not enough financial resources available to remedy every 
environmental problem that can be identified. Rather, EPA must 
develop serious priorities, using cost-benefit-risk analysis if 
appropriate, so that it can go about the task of accomplishing 
meaningful environmental goals in an orderly and systematic 
way. To this end, the old ``command and control'' approach must 
be dicarded--in the Regions as well as in headquarters--and 
replaced with new methods that promote facilitation, compliance 
assistance, and federal-state-business partnerships coupled 
with financial leveraging. The agency's Common Sense Initiative 
and Project XL are excellent examples of such new methods, and 
the conferees strongly urge the agency to be more deliberate 
and aggressive in its move to foster these new, flexible 
partnerships and relationships with the states and with 
business without compromising the environmental goals set by 
the Congress and carried out by the agency. The conferees stand 
ready to assist the agency in its move in this new direction.
      The conferees strongly support the recommendations made 
by the National Academy of Public Administration in ``Setting 
Priorities, Getting Results: A New Direction for EPA'' as 
outlined in both the House and Senate committee reports 
accompanying this bill. The conferees believe that monitoring 
the progress in implementing NAPA's recommendations, and 
evaluating the effectiveness of such initiatives as Project XL, 
performance partnerships, and the Common Sense Initiative to 
determine if these programs offer the country a significant 
improvement over traditional regulatory approaches is very 
important. The conferees direct EPA to propose to the 
Committees by February 15, 1996, how to evaluate these 
initiatives, the agency's progress in implementing NAPA's 
recommendations, and how changes in EPA's management systems 
and organizational structure encourage or inhibit these 
innovations. EPA should consider as part of its proposal a 
further involvement by NAPA or other outside parties in this 
evaluation.
      The conferees are in agreement on the following changes 
to the budget request:
            +$2,000,000 for the Southwest Center for 
        Environmental Research and Policy.
            +$1,600,000 for Clean Water Act sec. 104(g) 
        wastewater operator training grants.
            +$350,000 for the Long Island Sound office.
            +$1,000,000 for the Sacramento River Toxic 
        Pollutant Control program, to be cost shared.
            +$1,000,000 for continuing work on the water 
        quality management plan for the Skaneatles, Owasco, and 
        Otisco Lake watersheds.
            +$300,000 for the Cortland County, New York aquifer 
        protection plan.
            +$8,500,000 for rural water technical assistance 
        activities.
            +$500,000 for continuation of the Small Public 
        Water Systems Technical Assistance Center at Montana 
        State University.
            +$300,000 for a feasibility study for the delivery 
        of water from the Tiber Reservior to Rocky Boy 
        Reservation.
            +$2,000,000 for the small grants program to 
        communities disproportionately impacted by pollution.
            +$1,000,000 for community/university partnership 
        grants.
            +$300,000 for the National Environmental Justice 
        Advisory Council.
            +$1,000,000 for ongoing Earthvision educational 
        programs.
            +$500,000 for ongoing programs of the Canaan Valley 
        Institute.
            +$900,000 for remediation of former and abandoned 
        lead and zinc mining in Missouri.
            +$250,000 for an evaluation of groundwater quality 
        in Missouri where evidence exists of contamination 
        associated with anthropological activities.
            +$75,000 for the Rocky Mountain Regional Water 
        Center's model watershed planning effort.
            +$150,000 for the National Groundwater Foundation 
        to continue ongoing programs.
            +$500,000 to continue the methane energy and 
        agricultural development demonstration project.
            +$185,000 for the Columbia River Gorge Commission 
        for monitoring activities.
            +$1,000,000 for environmental review and basin 
        planning for a sewer separation demonstration project 
        for Tanner Creek.
            +$300,000 to continue the Small Business Pollution 
        Prevention Center managed by the Iowa Waste Reduction 
        Center.
            +$1,500,000 for the final year of the Alternative 
        Fuels Vehicle Training program.
            +$2,000,000 for the Adirondack Destruction 
        Assessment program to assess the effects of acid 
        deposition.
            +$750,000 for the Lake Pontchartrain management 
        conference.
            +$750,000 to continue the solar aquatic waste water 
        demonstration program in Vermont.
            +$1,000,000 to continue the onsite waste water 
        treatment demonstration through the small flows 
        clearinghouse.
            +$235,000 for a model program in the Cheney 
        Reservoir to assess water quality improvement practices 
        related to agricultural runoff.
            +$500,000 to continue the coordinated model tribal 
        water quality initiative in Washington State.
            +$250,000 for the Ala Wai Canal watershed 
        improvement project.
            +$200,000 for the Sokaogon Cheppewa Community to 
        continue to assess the environmental impacts of a 
        proposed sulfide mine project.
            +$2,000,000 for a demonstration program to 
        remediate leaking above ground storage tanks in Alaska.
            +$1,000,000 for the National Environmental Training 
        Center for Small Communities.
            +$500,000 for the Lake Champlain basin plan 
        available for Vermont and New York.
            +$31,645,700 for the Working Capital Fund 
        transferred from the former research and development 
        account. This fund has not been approved.
            -$11,900,000 from low priority activities in the 
        Office of Air and Radiation, except that no funds are 
        to be reduced from the budget request for the WIPP 
        compliance criteria or from the program activities 
        associated with work at Yucca Mountain, Nevada.
            -$2,600,000 from the Environmental Justice program, 
        including the Partners in Protection Program.
            -$47,000,000 from the Environmental Technology 
        Initiative.
            -$55,000,000 from Climate Change Action Plan 
        programs. The conferees note that over $80,000,000 
        remains available for this program, an amount double 
        that provided in fiscal year 1994. The agency is 
        directed to terminate funding for programs which 
        compete directly or indirectly with commercial 
        business, including the Energy Star Homes Program.
            -$12,000,000 from the Montreal Protocol 
        Facilitation Fund.
            -$405,000 from the Building Air Quality Alliance.
            -$48,000,000 from low priority enforcement 
        activities.
            -$1,800,000 from low priority environmental 
        education activities. The conferees urge the agency to 
        ensure that other resources will be provided for the 
        third and final year to carry out the environmental 
        education grants program to minority institutions. In 
        addition, the conferees expect the National 
        Environmental Education and Training Foundation will be 
        funded at the fiscal year 1995 level.
            -$3,000,000 from low priority activities in the 
        Office of International Activities.
            -$350,000 from activities related to unauthorized 
        research related to electromagnetic fields.
            -$2,000,000 from the national service initiative.
            -$$1,000,000 from the GLOBE program.
            -$25,000,000 from regional and state oversight 
        activities.
            -$81,474,300 from program office laboratory costs 
        requested under the former abatement, control, and 
        compliance and program and research operations 
        accounts. As noted in the science and technology 
        account, funds have been made available to continue 
        funding these facilities under the new account 
        structure agreed to by the conferees.
            -$140,080,200 from Office of Research and 
        Development personnel costs requested under the former 
        program and research operations account. As noted in 
        the science and technology account, funds have been 
        made available to meet personnel requirements under the 
        new account structure agreed to by the conferees.
            -$683,466,200 from state and tribal categorical 
        grants which have been transferred by the conferees 
        from the former abatement, control, and compliance 
        account to the new state and tribal assistance grants 
        account.
            -$166,786,000 as an undistributed general reduction 
        throughout this restructured account, subject to the 
        modified reprogramming procedures.
      No legislative provisions as proposed by the House and 
stricken by the Senate have been included in this new account.
      To provide the EPA with enhanced spending flexibility, 
the conferees have included language in the bill which makes 
funds available for expenditure for two years until September 
30, 1997, and have agreed on reprogramming procedures for this 
account only, which permit reprogrammings below $500,000 
without notice to the Committees, reprogrammings between 
$500,000 and $1,000,000 with notice to the Committees, and 
reprogrammings over $1,000,000 with approval of the Committees.
      The conferees agree on the importance of the 
Environmental Finance Centers and expect that they be 
adequately supported. Similarly, the conferees direct that a 
grant for Sarasota County, Florida be provided from within 
funding for the National Estuary Program to support the 
implementation of the Sarasota Bay NEP Conservation and 
Management Plan. Finally, the conferees note that the 
Chesapeake Bay Program has been fully funded and expect that 
appropriate resources will be devoted to oyster reef 
construction in the Chesapeake.
      The conferees urge EPA to work in a cooperative manner 
with the Commonwealth of Virginia to resolve issues concerning 
the state's proposed state implementation plan relative to 
title V of the Clean Air Act, and to receive the court's 
guidance before implementing section 502(b)(6) of the Act.
      The conferees are in agreement that EPA should consider 
holding in abeyance the development of a proposed rule 
concerning a Sole Source Aquifer Designation for the Eastern 
Columbia Plateau Aquifer System in eastern Washington State, 
until all issues raised by the State are fully explored and 
resolved in a manner which meets the needs of all parties.
      The conferees also remain concerned about reports filed 
earlier this year in Milwaukee, Wisconsin and other locations 
regarding illness alleged to be caused by the use of 
reformulated gasoline (RFG). While the conferees note that the 
scientific community has yet to make a direct link between such 
illness and the use of RFG, the conferees nevertheless expect 
the agency to continue its review of all available literature 
and data developed in response to this situation--including 
such information that may be developed during the winter of 
1995-1996--and provide a determination of what additional 
studies or actions may be necessary to adequately monitor and 
address the situation.
      The conferees are concerned about the interim policy 
statement on voluntary environmental self policing and self 
disclosure by the agency. The conferees believe that these 
state initiatives may prove to be valuable tools to increase 
compliance with environmental laws in their states. Therefore, 
the conferees urge EPA to work with the appropriate Committees 
of Congress to develop an appropriate policy concerning state 
environmental audit or self evaluation privilege or immunity 
laws.
      As expressed in both House and Senate Committee reports 
accompanying H.R. 2099, there continues to be concern with 
EPA's proposed ``cluster rule'' for pulp and paper. The 
conferees urge EPA to appropriately address pollutants emitted 
at only de minimus levels, such as metals from pulping 
combustion sources, by using its existing authority to 
establish a de minimus exemption for such pollutants, or by 
establishing an emission threshold or level of applicability 
which would achieve a similar result.
      Similarly, the conferees remain concerned about the 
direction taken by the agency with regard to the promulgation 
of a rule under TSCA to ban or regulate the use of acrylamide 
and n-methylolacrylamide (NMA) grouts. Such grouts are an 
important tool in the repair of sewer systems, and the loss of 
this tool would substantially impair the ability of 
municipalities to effect repairs of sewer systems without major 
and costly construction. The conferees strongly urge the agency 
to review its risk assessment and cost-benefit analysis and 
provide the appropriate committees of the Congress with all 
relevant updated information developed through this review, 
prior to moving forward in this matter.
      The conferees agree that concerns raised by the House 
regarding the joint EPA/DOE Life Cycle Assessment program have 
been addressed adequately by the agency. Provided that the 
agency continues to coordinate the scope, application, and 
direction of the program with the private sector, the conferees 
do not object to the use of appropriations in the furtherance 
of this program.
      The conferees are concerned with EPA's plans to expand 
the Toxics Release Inventory (TRI) to include toxics use data, 
despite the lack of specific authorization under the Emergency 
Planning and Community Right-to-Know Act. The conferees note 
that while the legislation establishing the TRI (42 U.S.C. 
11023) directs EPA to publish a uniform toxics chemical release 
form providing for the submission of data on ``the general 
category or category of use'' of a chemical, and the Pollution 
Prevention Act (42 U.S.C. 13101-13109) expanded the TRI by 
requiring that facilities filing such a release form include a 
source reduction and recycling report, Congress has not granted 
EPA the specific authority to expand the TRI to require the 
reporting of any mass balance, materials accounting, or other 
data on amounts of chemicals used by a reporting facility. The 
conferees urge EPA not to take final action to create a Toxics 
Use Inventory until it seeks specific legislative authority to 
do so.
      The conferees have agreed to delete a provision proposed 
by the House which prohibited the expenditure of funds to 
impose or enforce proposed rules under section 112(r) of the 
Clean Air Act and instead note their pleasure that EPA is 
considering amendments to the risk management plan list rule 
which address some of the concerns underlying the House 
amendment. The conferees remain concerned, however, that the 
status of natural gas processors may not be adequately 
addressed in these amendments. Arguments advanced to exempt 
exploration and production facilities from section 112(r) are 
equally applicable in the case of natural gas processing 
facilities, which are also remotely-located, uncomplicated, and 
often unmanned. Therefore, the conferees urge EPA to consider 
extending any clarification regarding exploration and 
production facilities to natural gas processors.
      The conferees have also deleted language proposed by the 
House regarding the recently published maximum achievable 
control technology (MACT) rule for the petroleum refining 
industry. At both the House and Senate fiscal year 1996 budget 
hearings for the agency, held this spring, considerable 
testimony was taken on the issue of this refinery MACT. 
Although all parties agree that portions of this rule are 
acceptable and workable, testimony received at these hearings 
indicated that the agency drafted much of the rule relying on 
data that was as much as 15 years old, even when agency-
acceptable three year old data was available. As the testimony 
itself revealed, drafting of MACT rules in this manner may not 
be consistent with the intent of the Congress in the passage of 
the Clean Air Act. In this regard, the conferees urge the 
agency to consider proposing appropriate amendments, using the 
latest data, to this rule so that the strongest, and fairest, 
MACT rule can be instituted.
      Similarly, based on testimony received during the fiscal 
year 1996 budget hearings, the House had included bill language 
prohibiting the expenditure of funds to proceed with the so-
called ``combustion strategy'' unless the agency followed its 
own regulatory guidelines. While the conferees have deleted 
this language they nevertheless remain concerned with the 
expenditure of funds by any agency in pursuit of a rulemaking 
which is in conflict with their own rules and procedures. In 
this instance, EPA has stated publicly that its use of 
applicable statutory authority must be accompanied by site-
specific findings of risk in the administrative record 
supporting a permit and that any conditions are necessary to 
ensure protection of human health and the environment (56 
Federal Register 7145). The conferees strongly urge the agency 
to fully comply with its own regulations in any invocation of 
omnibus permitting authority, and, in furtherance of their 
hearing records in this matter, direct EPA to report to the 
House and Senate Appropriations Committees as to how the agency 
intends to implement these requirements in connection with its 
``Combustion Strategy.'' In this regard, it should be noted 
that the National Academy of Sciences is conducting currently a 
study on the health effects of waste combustion scheduled for 
completion in September 1996. To ensure that policies are based 
on the best up-to-date science and to incorporate appropriate 
Academy findings, the conferees believe the sensible approach 
would be to await the results of the study before finalizing a 
rule addressing the combustion of hazardous waste.
      Given the importance of maintaining an adequate and 
wholesome food supply to ensure good public health, the Office 
of Pesticide Programs (OPP) is encouraged to take steps to 
retain the same level of funding and FTEs as has been provided 
in fiscal year 1995.
      It is the intention of the conferees that the EPA avoid 
unnecessary or redundant regulation and minimize burdens on 
beneficial research and development of genetically engineered 
plants. The conferees note that both the National Research 
Council of the National Academy of Sciences and the World 
Health Organization have concluded that the application of 
recombinant DNA technology does not pose any unique risk to 
food safety or the environment. While conferees acknowledge the 
basic regulatory requirements set forth under the Federal 
Insecticide, Fungicide and Rodenticide Act, the agency is urged 
to minimize the regulatory burden on the developers of products 
of such technology. Moreover, the agency should adopt risk 
based regulations or exemptions from regulations for small 
scale field testing of genetically engineered plants that are 
not dissimilar from those regulations set forth for the testing 
of other pesticides. The conferees expect EPA to report to the 
appropriate committees of the Congress by May 1, 1996 on any 
regulatory or trade burdens imposed by the agency through 
registration under the Federal Insecticide, Fungicide and 
Rodenticide Act on developers of genetically modified plants 
(including such burdens as have been identified by academic 
scientists performing research in the field, companies using 
biotechnology techniques, and others), as well as the agency's 
action to reduce those burdens to levels commensurate with the 
risks.
      Language with regard to an exemption from section 307(b) 
of the Federal Water Pollution Control Act, as amended, for the 
Kalamazoo Water Reclamation Plant, has been included. The 
conferees slightly modified the language as proposed by the 
Senate to require that treatment and pollution removal is 
equivalent to or better than that which would be required 
through a combination of pretreatment by an industrial 
discharger and treatment by the Kalamazoo Water Reclamation 
Plant in the absence of the exemption.
      The conferees expect the agency to promptly implement its 
partial response to a Citizen Petition filed September 11, 1992 
regarding pesticide regulatory policies. Further, the conferees 
expect the agency to promptly complete its response to that 
Petition and another Citizen Petition filed July 10, 1995 in 
such a way as to minimize the unnecessary loss of pesticides 
that pose on more than a negligible risk to health or the 
environment.
      Further, based on the possible risk to public health, EPA 
is strongly urged not to take action on the tolerance for 
ethylene oxide without first referring the results of the 
Ethylene Oxide Scientific Review Panel to the EPA Scientific 
Advisory Board. EPA shall then report to the Committees on the 
SAB's report and EPA's evaluation of that report.
      Amendment No. 67: Deletes language proposed by the Senate 
making a technical change.
      Amendment No. 68: Appropriates $28,500,000 for the Office 
of Inspector General instead of $28,542,000 as proposed by the 
House and $27,700,000 as proposed by the Senate. The conferees 
agree that the program level for the OIG will be $40,000,000, 
which includes transfers of $500,000 from the LUST trust fund 
and $11,000,000 from the hazardous substance superfund account.
      Amendment No. 69: Appropriates $60,000,000 for buildings 
and facilities as proposed by the Senate instead of $28,820,000 
as proposed by the House. Up to $33,000,000 of the amount made 
available is for completion of the Ft. Meade, Maryland/Region 
III lab facility. Remaining funds are for facility repair, 
maintenance and improvements, and for renovation of the new 
headquarters facility.
      The conferees note that the lack of financial resources 
made it impossible to fund the first phase of new construction 
at Research Triangle Park. Nevertheless, the conferees 
acknowledge the demonstrated need for new or updated facilities 
consistent with the mission conducted at this important 
research facility. Prior to the submission of the fiscal year 
1997 budget request, the agency is directed to provide a report 
to the Committees on Appropriations which includes realistic, 
cost-effective alternatives in addition to construction of a 
new facility.

                     hazardous substance superfund

      Amendment No. 70: Deletes language proposed by the House 
and striken by the Senate which provides that all 
appropriations for the hazardous substance superfund be derived 
from general revenues, and inserts language proposed by the 
Senate in lieu thereof which provides that a specified portion 
of the appropriation for the hazardous substance superfund be 
derived from the superfund trust fund as authorized by section 
517(a) of the Superfund Amendments and Reauthorization Act of 
1986, as amended by P.L. 101-508, and the remainder be derived 
from general revenues as authorized by section 517(b) of the 
Superfund Amendments and Reauthorization Act of 1986, as 
amended by P.L. 101-508. For the hazardous substance superfund, 
$913,400,000 shall be derived from the trust fund, instead of 
$753,400,000 as proposed by the Senate, and $250,000,000 shall 
be derived from general revenues, as proposed by the Senate.
      In addition, language is inserted providing a total of 
$1,163,400,000 for Superfund.
      Amendment No. 71: Provides $11,000,000 for transfer to 
the Office of Inspector General instead of $5,000,000 as 
proposed by the House and $11,700,000 as proposed by the 
Senate.
      Amendment No. 72: Provides $59,000,000 for the Agency for 
Toxic Substances and Disease Registry instead of $62,000,000 as 
proposed by the House and $55,000,000 as proposed by the 
Senate.
      Amendment No. 73: Deletes language proposed by the House 
and stricken by the Senate which makes no funds appropriated 
under this account available for expenditure after December 31, 
1995 unless the Comprehensive Environmental Response, 
Compensation and Liability Act of 1980 is reauthorized.
      Amendment No. 74: Inserts language proposed by the 
Senate, with a modification, which prohibits the expenditure of 
funds for the proposing for listing or the listing of sites on 
the National Priorities List (NPL) established by section 105 
of CERCLA, as amended, unless the Administrator of the EPA 
receives a written request to place the site on the NPL from 
the governor of the state in which the site is located, unless 
CERCLA, as amended, is reauthorized. The conferees note that 
this provision is consistent with the reduction in spending for 
Superfund pending reauthorization. Also, it reflects 
Congressional efforts to turn more responsibility for Superfund 
over to the States.
      Amendment No. 75: Deletes langauge proposed by the Senate 
directing the funding of the Brownfields Economic Redevelopment 
Initiative at a level sufficient to complete the award of 50 
cumulative Brownfields Pilots by the end of fiscal year 1996 
and to carry out other elements of the Brownfields Action 
Agenda. The conferees are in agreement as to the importance of 
the Brownfields programs and direct the agency to provide 
financial assistance to local cummunities to expedite the 
assessment of brownfields sites in order to ensure early 
remediation of these properties in conjunction with local 
economic development goals. The Brownfields initiative is to be 
funded at no less than the current level.
      For the hazardous substance superfund program, the 
conferees have provided $1,163,400,000, and direct that the 
agency prioritize resources, to the greatest extent possible, 
on NPL sites posing the greatest risk. The conferees note that, 
based on figures supplied by EPA, this appropriation is more 
than sufficient to continue all scheduled work (including the 
completion of one work phase and the movement to the next) on 
all sites currently on the NPL, as well as deal adequately and 
appropriately with all emergency response needs. While the 
authorizing committees proceed with the reauthorization and 
reform of the Superfund program, something that literally all 
stakeholders endorse, the conferees felt it was inappropriate 
to place new sites on the NPL. However, EPA is directed to move 
forward with real clean-up actions in an improved, aggressive 
manner while minimizing overhead, personnel and other 
administrative costs. Additionally, the agency is directed to 
submit a detailed report to the Committees on Appropriations, 
prior to their respective fiscal year 1997 budget hearings, on 
the demonstrated improvements, if any, on reducing such 
overhead, personnel and other administrative costs.
      Included in the appropriated level are the following 
amounts:
      $800,379,000 for hazardous substance superfund response 
actions.
      $125,076,000 for management and support, including 
$11,000,000 transferred to the office of Inspector General and 
$3,076,000 for the Office of Air and Radiation.
      $127,000,000 for enforcement.
      $140,945,000 for interagency activities including 
$59,000,000 for ATSDR; $48,500,000 for NIEHS, of which 
$32,000,000 is for research and $16,500,000 is for worker 
training; $25,000,000 for the Department of Justice; $4,350,000 
for the U.S. Coast Guard; $2,000,000 for NOAA; $1,100,000 for 
FEMA; $680,000 for the Department of the Interior; and $315,000 
for OSHA.
      The conferees have also agreed to an undistributed 
reduction of $30,000,000 from administrative costs and to a 
limit on administrative expenses of $275,000,000, subject to 
normal reprogramming procedures.
      The conferees fully support the continuation of the ATSDR 
minority health professions cooperative agreement at the 
$4,000,000 funding level, as well as the continuation of 
adequate funding for the ATSDR health effects study on the 
consumption of Great Lakes fish. Similarly, the conferees note 
continued support for the Mine Waste Technology Program from 
within available funds at an FY 1996 level for $3,000,000.
      As noted earlier, the authorizing committees are 
currently undertaking the reauthorization and reform of the 
Superfund program. While the conferees acknowledge that honest 
disagreements exist as to the shape such reform should take, 
there nevertheless are many things the agency can and should be 
doing now within the context of reform that amount to nothing 
more than good government.
      One such area of concern to the conferees is that of 
proper notification by the agency of persons of potential 
liability for facilities on the NPL. Potentially responsible 
parties (PRPs) have a reasonable expectation to be notified by 
the EPA in a timely manner and within a time frame that permits 
participation in remedy selection and execution. In particular, 
it is inequitable and unconscionable for the agency to identify 
a PRP without the means to effectively participate in remedy 
selection and execution and then, after the remedy has been 
substantially completed, to attempt to identify other parties 
to pay for the remedial activity. PRP's should be identified as 
soon as practicable to allow all potentially interested parties 
to bring their individual expertise and resources to bear on a 
commonly identified remedy and to fully participate in the 
remediation of an NPL site if they are expected to bear the 
expense of the activity. The conferees expect the agency to 
review all of its activities to determine the extent to which 
such situations have occurred and, in conjunction with the 
Department of Justice, make every effort to remedy such actions 
in a non-confrontational, non-litigious manner.
      Amendment No. 76: Limits administrative expenses for the 
leaking underground storage tank trust fund to $7,000,000, 
instead of $5,285,000 as proposed by the House and $8,000,000 
as proposed by the Senate.
      Amendment No. 77: Provides $500,000 for transfer to the 
Office of Inspector General instead of $426,000 as proposed by 
the House and $600,000 as proposed by the Senate.
      Amendment No. 78: Appropriates $15,000,000 for oil spill 
response as proposed by the Senate instead of $20,000,000 as 
proposed by the House.
      Amendment No. 79: Limits administrative expenses for oil 
spill response to $8,000,000 as proposed by the Senate instead 
of $8,420,000 as proposed by the House.

                   state and tribal assistance grants

      Amendment No. 80: Appropriates $2,323,000,000 for state 
and tribal assistance grants, instead of 2,340,000,000 as 
proposed under program and infrastructure assistance by the 
Senate, and instead of $1,500,175,000 as proposed under water 
infrastructure/state revolving funds by the House. The water 
infrastructure/state revolving fund account proposed by the 
House and stricken by the Senate and the program and 
infrastructure assistance account proposed by the Senate are 
deleted, and the new state and tribal assistance grant account 
is adopted in lieu thereof.
      The conferees have agreed to the creation of this new 
account, within the structure proposed by the Senate, so as to 
enhance the Agency's ability to provide performance 
partnerships, or block grants, to the states and tribal 
governments. Language creating the performance partnership 
program and language permitting the Administrator to make 
multi-media environmental grants to recognized tribal 
governments, has been included. Language which clarifies that 
the funds for a grant to the City of Mt. Arlington, New Jersey, 
appropriated in P.L. 103-327 in accordance with House Report 
103-715, were intended for water and sewer improvements, has 
also been included. Finally, the conferees have included 
language proposed by the Senate which would allow a portion of 
the funds appropriated for the construction grants program in 
fiscal year 1992 and thereafter, under the Clean Water Act for 
construction grants and special projects, to be used by States 
for the purposes of administering the completion or closeout of 
any remaining projects. States will be required to reimburse 
the grant recipient from other State funds available to the 
State to support construction activities.
      From within the appropriated level, the conferees agree 
to the following amounts:
      $1,125,000,000 for wastewater capitalization grants.
      $275,000,000 for safe drinking water capitalization 
grants, available only upon authorization and only if such 
authorization occurs by June 1, 1996. If no such legislation 
becomes law prior to June 1, 1996, appropriated funds 
immediately become available for wastewater capitalization 
grants to the states and tribal governments.
      $225,000,000 for safe drinking water capitalization 
grants, made available from funds provided in P.L. 103-327 and 
P.L. 103-124, subject to authorization prior to June 1, 1996. 
If no such authorization for safe drinking water capitalization 
grants occurs prior to this date, such funds are to be 
available for wastewater capitalization grants.
      $100,000,000 for architectural, engineering, design and 
construction related activities for high priority water and 
wastewater facilities near the United States-Mexico border.
      $50,000,000 for cost shared grants to the State of Texas 
(Colonias).
      $15,000,000 for grants to Alaska, subject to cost share 
requirements, for rural and Alaska Native Villages.
      $658,000,000 for state and tribal categorical grants 
through traditional grants procedures as well as through the 
performance partnership program. The conferees note this is 
virtually identical to the fiscal year 1995 level. The 
conferees agree that such funds are available in unspecified 
amounts for the following specific programs:
      Non-point source pollution grants under section 319 of 
the Federal Water Pollution Control Act (FWPCA), including 
appropriate activities under the Clean Lakes program; water 
quality cooperative agreements under section 104(b)(3) of 
FWPCA; public water system supervision grants under section 
1443(a) of the Public Health Service Act; air resource 
assistance to State, local and tribal governments under section 
105 of the Clean Air Act; radon state grants; control agency 
resource supplementation under section 106 of FWPCA; wetlands 
program implementation; underground injection control; 
pesticides program implementation; lead grants; hazardous waste 
financial assistance; pesticides enforcement grants; pollution 
prevention; toxic substances enforcement grants; Indians 
general assistance grants; and, underground storage tanks. The 
conferees expect the agency to consult with the Committees on 
Appropriations and with the states prior to the determination 
and reporting of the amounts allocated for each of these areas.
      The conferees agree that Performance Partnership Grants 
are an important step to reducing the burden and increasing the 
flexibility that state and tribal governments need to manage 
and implement their environmental protection programs. This is 
an opportunity to use limited resources in the most effective 
manner, yet at the same time, produce the results-oriented 
environmental performance necessary to address the most 
pressing concerns while still achieving a clean environment. As 
part of the implementation of this program, the conferees agree 
that no reprogramming requests associated with States and 
Tribes applying for Performance Partnership Grants need to be 
submitted to the Committees on Appropriations for approval 
should the reprogrammings exceed the normal reprogramming 
limitations.
      From within the amount appropriated for wastewater 
capitalization grants, $50,000,000 is to be made available for 
wastewater grants to impoverished communities pursuant to 
section 102(d) of H.R. 961 as approved by the House of 
Representatives on May 16, 1995. The conferees expect the 
Agency to closely monitor state compliance with this provision 
to assure that funds are obligated appropriately and in a 
timely manner. Unused funds allocated for this purpose are to 
be made available for other wastewater capitalization grants.
      $100,000,000 for the following special assistance grants 
in the following amounts:
      $39,500,000 for special projects as requested in the 
budget submission, including $25,000,000 for Boston Harbor, 
$10,000,000 for the City of New Orleans, $3,000,000 for Fall 
River and $1,500,000 for New Bedford.
      $5,000,000 for alternative water source projects in West 
Central Florida.
      $1,750,000 for wastewater infrastructure improvements 
including $1,500,000 for Manns Choice, Bedford County, 
Pennsylvania, and $250,000 for Taylor Township, Blair County, 
Pennsylvania.
      $11,625,000 for continuing clean water improvements at 
Onondaga Lake.
      $11,625,000 for continuation of the Rouge River National 
Wet Weather project.
      $22,000,000 for continuation of the Mojave Water Agency 
groundwater research project.
      $2,500,000 for the refurbishment and construction of 
sanitary and storm sewer systems in Ogden, Utah.
      $6,000,000 for wastewater facility improvements in the 
vicinities of Peter Creek, East Bernstadt/Pittsburg, and Vicco, 
Kentucky.
      Amendment No. 81: Inserts a heading as proposed by the 
Senate and deletes language proposed by the Senate regarding 
the adoption or implementation of an inspection and maintenance 
program pursuant to section 182 of the Clean Air Act. The 
conferees note that this issue has recently been considered in 
a conference of authorization committees and therefore has 
become unnecessary to pursue in the context of this 
legislation.
      Amendment No. 82: Deletes language proposed by the Senate 
regarding the limitation of funds available to impose or 
enforce trip reduction measures pursuant to the Clean Air Act. 
The conferees note that this issue recently has been considered 
in a conference of authorization committees and therefore has 
become unnecessary to pursue in the context of this 
legislation.
      Amendment No. 83: Inserts language similar to that 
proposed by the Senate which prohibits the expenditure of funds 
for the signing or publishing for promulgation of a rule 
concerning new drinking water standards for radon only. The 
conferees note that this language is identical to that 
contained in this Act for each of the last two fiscal years.
      Amendment No. 84: Inserts language proposed by the Senate 
which prohibits the expenditure of funds to sign, promulgate, 
implement, or enforce certain requirements regarding the 
regulation for a foreign refinery baseline for reformulated 
gasoline.
      Amendment No. 85: Inserts language proposed by the Senate 
which prohibits the expenditure of funds to implement section 
404(c) of the Federal Water Pollution Control Act, as amended, 
and which stipulates that no pending actions to implement 
section 404 (c) with respect to individual permits shall remain 
in effect after the date of enactment of this Act.
      Amendment No. 86: Deletes language proposed by the Senate 
regarding an exemption of section 307(b) of the Federal Water 
Pollution Control Act, as amended, for the Kalamazoo Water 
Reclamation Plant. Similar language has been included under the 
environmental programs and management account in Amendment No. 
66.
      Amendment No. 87: Deletes language proposed by the Senate 
prohibiting the expenditure of funds to enforce section 
211(m)(2) of the Clean Air Act in a nonattainment area in 
Alaska. Similar language is included in amendment number 88.
      Amendment No. 88: Inserts language proposed by the Senate 
which prohibits the expenditure of funds to implement the 
requirements of section 186(b)(2), or section 187(b) or 211(m) 
of the Clean Air Act for any moderate nonattainment area for 
which the average daily winter temperature is below 0 degrees 
Fahrenheit.
      Amendment No. 89: Deletes language proposed by the Senate 
which directs EPA to give priority assistance to small business 
concerns under section 3(a) of the Small Business Act in its 
Energy Efficiency and Supply programs, study the feasibility of 
establishing fees to recover the costs of such assistance, and 
provide a certain level of funding to support participation in 
the Montreal Protocol and climate change action plan programs.
      The conferees note that the budget for EPA's ``green 
programs'' has grown substantially over the past several years. 
Such growth cannot be sustained within the confines of an 
increasingly constrained budget. There is no disagreement that 
the green programs have enabled many companies to improve their 
profitability by installing energy efficient technologies. 
While it may be appropriate for the federal government to 
provide technical assistance to organizations which would not 
otherwise have the resources to make appropriate investment 
decisions on energy efficient technologies, such as small 
businesses, large corporations can and should make such 
investment decisions without federal assistance. The conferees 
agree that EPA is to undertake a study to determine the 
feasibility of establishing fees to recover all reasonable 
costs incurred by EPA for assistance rendered businesses in its 
Energy Efficiency and Energy Supply program, as described in 
the Senate amendment.
      Amendment No. 90: Deletes language proposed by the Senate 
which would prohibit final regulatory action under the Toxic 
Substances Control Act restricting the manufacturing, 
processing, distributing or use of lead, zinc, or brass fishing 
sinkers or lures, unless the risk to waterfowl cannot be 
addressed through alternative means. The conferees are 
extremely concerned that EPA continues to ignore the importance 
of allocating its budget to those activities which provide for 
the greatest reduction in risk. EPA has pursued activities 
which may have exceeded the agency's legal authority in the 
regulation of lead by seeking to regulate lead uses that pose 
no significant risks to human health or the environment, such 
as EPA's proposal to ban the manufacture and distribution of 
lead fishing sinkers. The agency's proposal presented little 
credible evidence to suggest that lead fishing sinkers are 
threatening to human health or waterfowl populations. The 
conferees expect EPA to engage in activities which maximize the 
use of its resources to achieve public health and environmental 
benefits, and therefore believe EPA should not pursue this 
rulemaking.
      Amendment No. 91: Deletes language proposed by the Senate 
which directs the investigation and report on the scientific 
basis for EPA's public recommendations with respect to indoor 
radon and other naturally occurring radioactive materials. The 
conferees direct EPA to enter into an arrangement with the 
National Academy of Sciences to investigate and report on the 
scientific basis for EPA's recommendations relative to indoor 
radon and other naturally occurring radioactive materials 
(NORM). The Academy is to examine EPA's guidelines in light of 
the recommendations of the National Council on Radiation 
Protection and Measurements and other peer-reviewed research by 
the National Cancer Institute, the Centers for Disease Control, 
and others. The Academy shall summarize the principal areas of 
agreement and disagreement among these bodies and shall 
evaluate the scientific and technical basis for any differences 
that exist. EPA is to submit this report to the appropriate 
committees of Congress within 18 months of the date of 
enactment of this Act, and state its views on the need to 
revise the guidelines for radon and NORM in light of the 
Academy's evaluation. The agency also shall explain the 
technical and policy basis for such views.
      Amendment No. 92: Deletes language proposed by the Senate 
regarding implementation of the Science to Achieve Results 
(STAR) program and restricting the hire of new staff positions 
under the contractor conversion program. The STAR and 
contractor conversion issues have been addressed under 
amendment number 65.
      Amendment No. 93: Inserts language which provides 
necessary expenses to continue the functions of the Council on 
Environmental Quality and Office of Environmental Quality as 
proposed by the Senate, instead of language proposed by the 
House and stricken by the Senate to carry out the orderly 
termination of the CEQ.

                  federal emergency management agency

      Amendment No. 94: Appropriates $222,000,000 for disaster 
relief instead of $235,500,000 as proposed by the House and no 
funds as proposed by the Senate. The conferees note that the 
1995 supplemental appropriation for disaster relief, totaling 
over $6,500,000,000, coupled with available unobligated 
appropriations, should be more than adequate to meet all 
current and expected disaster requirements. Should an FY 1996 
supplemental be necessary, the conferees would expect to 
respond and make such appropriations available in a timely 
manner.
      The conferees note that with the passing of the 1995 
hurricane season, there is confusion surrounding FEMA's 
determination of whether beach erosion under different 
conditions is eligible for assistance under the Stafford Act. 
While the Code of Federal Regulations certainly provides clear 
understanding of the rules by which FEMA operates, there 
nevertheless exists questions as to the legal underpinnings of 
this regulation. To help clarify the issue and avoid future 
controversy, the agency is directed to report within 45 days of 
enactment of this Act on the legal basis for this regulation 
and on the possible alternatives that exist to maximize 
mitigation and assistance efforts within the constraints of 
available financial resources.
      The conferees have been made aware of an unfortunate 
situation following the Northridge Earthquake whereby, based on 
assurances made by FEMA field agents, significant financial 
resources were spent or obligated to make appropriate repairs 
of buildings deemed eligible for assistance. Over a year 
following those assurances, a determination that such expenses 
were not eligible was received from FEMA headquarters, 
including a request for reimbursement of spent funds. As FEMA 
fully acknowledges that their erroneous assurance of assistance 
is the genesis of this problem, the conferees direct FEMA to 
make every effort to remedy this situation through appropriate 
administrative procedures.
      Amendment No. 95: Appropriates $168,900,000 for salaries 
and expenses as proposed by the Senate instead of $162,000,000 
as proposed by the House.
      Amendment No. 96: Appropriates $4,673,000 for the Office 
of the Inspector General as proposed by the Senate instead of 
$4,400,000 as proposed by the House.
      Amendment No. 97: Deletes reference to the Federal Civil 
Defense Act, as amended, with respect to activities under the 
emergency management planning and assistance account. This is a 
technical deletion as activities under this Act have been 
superseded by other Acts. The conferees have included language 
under amendment number 114 requested by FEMA in a budget 
amendment that would direct FEMA to sell its costly inventory 
of trailer/mobile homes which in the past have been used to 
meet temporary housing needs of some disaster victims. The 
costs of transporting these trailers to a disaster site, as 
well as the costs of necessary refurbishment upon return to 
inventory, far exceed the benefits provided by the trailers. 
More important, FEMA believes the important needs of emergency 
housing can be met in less expensive yet more appropriate ways. 
In making these sales, FEMA is directed to maximize receipts 
and minimize expenses to the greatest extent possible.
      Within the overall appropriation, the conferees have 
included $950,000 for earthquake hazard research and mitigation 
activities at Metro and DOGAMI; $1,000,000 for a statewide and 
regional hurricane proof evacuation shelter directory for the 
states of Texas, Louisiana, Mississippi, Alabama, Florida, 
Arkansas, and Georgia; and $4,000,000 in additional funds for 
state emergency management assistance (EMA) grants. FEMA is 
expected to reduce its underground storage tank program to 
offset these additional EMA grants. The remaining funds 
necessary to meet these additional expenses should be proposed 
through normal reprogramming procedures.
      The conferees note that FEMA has funded certain planning 
positions in State emergency management agencies at 100 percent 
during fiscal year 1995. The conferees direct the agency to 
continue funding these positions at this same level during 
1996, but also expect the agency to make appropriate plans 
during the fiscal year, including notifying the States if 
necessary, to reduce the federal share to no more than 50 
percent for fiscal year 1997 and beyond.
      Amendment No. 98: Appropriates $100,000,000 for emergency 
food and shelter as proposed by the House instead of 
$114,173,000 as proposed by the Senate.
      Amendment No. 99: Deletes language proposed by the House 
and stricken by the Senate which prohibits the expenditure of 
funds for any further work on effective Flood Insurance Rate 
Maps for certain areas in and around the City of Stockton and 
San Joaquin County, California. The conferees are aware that 
the City of Stockton and San Joaquin County, California are 
restoring existing levee systems that a FEMA flood hazard 
restudy has determined no longer meet FEMA's minimum flood 
protection standard. The conferees are also aware that the City 
and County have recently filed an appeal regarding the 
determination by that study and were thus satisfied that, just 
as with bill language, the duration of the appeal would provide 
the opportunity to fully and properly deal with this important 
matter. The conferees therefore direct FEMA to thoroughly 
analyze the appeal and develop alternatives that will lead to a 
resolution of this situation prior to the conclusion of the 
appeal process.
      The Members of Congress, local officials, and private 
citizens who have addressed this issue all wish to achieve a 
result that will not hinder the economic development of the 
area while, at the same time, ensuring the safety and health of 
all residents. The conferees share this goal. The National 
Flood Insurance Program (NFIP), a community-participation 
program, has a history of cooperation with local governments 
that spans more than two decades. During this time, a great 
deal of development has taken place in mapped areas in 
thousands of communities across the country. Therefore, to 
assist the City and County in guiding new development, the 
conferees direct FEMA to first assist by approximating the 
study flood hazard areas identified on the preliminary Flood 
Insurance Rate Maps (FIRM's) based on FEMA's restudy. FEMA also 
is directed to consult with the City and County to ensure that 
the design and construction for the restored levees will 
satisfy the criteria for accrediting those structures on FIRMs 
that will become effective six months after all appeals are 
fully resolved. Further, the conferees direct FEMA to revise 
the FIRMs at the earliest date possible to reflect accredited 
improvements to the levee systems as they are completed.
      The conferees note that no funds have been included to 
produce Flood Rate Insurance Directories (FRIDs) or to sell 
flood insurance directly to the public. While the conferees 
support FEMA's effort to increase the use of federal flood 
insurance, such sales should continue through normal private 
commercial activity. The conferees are also in agreement that 
FEMA should make no effort to suspend, revoke, or limit the 
participation of St. Charles County, Missouri in the National 
Flood Insurance program because of the permitting of levee 
improvements to publicly sponsored levee districts.
      Finally, the conferees agree that FEMA should conduct a 
pilot project of a working capital fund during fiscal year 
1996, and report on the outcome of the pilot periodically 
throughout the course of the fiscal year.

                    General Services Administration

                      consumer information center

      Amendment No. 100: Provides for a change in the 
administrative expenses limitation to $2,602,000 as proposed by 
the Senate instead of $2,502,000 as proposed by the House.
      The conferees agree to an increase in the administrative 
expenses limitation for the Consumer Information Center to 
reflect the increased responsibilities of the Center as it 
takes on efforts previously assigned to the Office of Consumer 
Affairs.

                Department of Health and Human Services

                       office of consumer affairs

      Amendment No. 101: Appropriates no funding for the Office 
of Consumer Affairs, as proposed by the Senate instead of 
$1,811,000 as proposed by the House.
      The conferees agree to the Senate position to delete all 
funding for the Office of Consumer Affairs. The conferees agree 
that the functions of producing the Consumer Resources Handbook 
and organizing the Constituent Resource Exposition are to be 
transferred to the Consumer Information Center. Language is 
included in the bill to facilitate the transfer of personnel 
and responsibilities associated with closure of this office.

             National Aeronautics and Space Administration

                           human space flight

      Amendment No. 102: Appropriates $5,456,600,000 for Human 
Space Flight, instead of $5,449,600,000 as proposed by the 
House and $5,337,600,000 as proposed by the Senate.
      The conference agreement reflects the following change 
from the budget request:
      A reduction of $53,000,000 to reflect savings which 
accrue from the closure of the Yellow Creek Facility at Iuka, 
Mississippi.
      The conferees believe that savings are achievable in 
shuttle operations when the recommendations called for in the 
Kraft report on shuttle operations are implemented. The 
conferees are encouraged that NASA has begun to aggressively 
implement the recommendations and look forward to seeing the 
financial savings materialize while maintaining safe shuttle 
operations.

                     nasa industrial plant, downey

      The conferees are aware of ongoing discussions between 
NASA, Rockwell International, and officials of the City of 
Downey, California, regarding possible disposition of NASA real 
property at the NASA Industrial Plant, Downey. The conferees 
understand that this planning effort could culminate in a 
proposal for disposition of NASA real property at the Downey 
site which may: consolidate Space Shuttle engineering 
activities, thereby reducing annual Government operations 
costs; possibly produce proceeds to the U.S. Treasury from 
transfer of portions of the NASA real property; and make 
available portions of the real property for commercial/
industrial use. The conferees direct that NASA report to the 
Committees on Appropriations on progress in this disposition 
planning effort, including any potential economic benefits to 
the Government, by February 1, 1996.

                         termination liability

      The conferees fully support deployment of the space 
station but recognize the funds appropriated by this Act for 
the development of the space station may not be adequate to 
cover all potential contractual commitments should the program 
be terminated for the convenience of the Government. 
Accordingly, if the space station is terminated for the 
convenience of the Government, additional appropriated funds 
may be necessary to cover such contractual commitments. In the 
event of such termination, it would be the intent of the 
conferees to provide such additional appropriations as may be 
necessary to provide fully for termination payments in a manner 
which avoids impacting the conduct of other ongoing NASA 
programs.
      Amendment No. 103: Deletes House language delaying the 
availability of $390,000,000 for Space Station until August 1, 
1996.

                  science, aeronautics and technology

      Amendment No. 104: Appropriates $5,845,900,000 for 
Science, Aeronautics and Technology, instead of $5,588,000,000 
as proposed by the House and $5,960,700,000 as proposed by the 
Senate.
      The conference agreement reflects the following changes 
from the budget request:
      A general reduction of $33,000,000 to be distributed in 
accordance with normal reprogramming procedures.
      A reduction of $13,700,000 from the budget request for 
the Stratospheric Observatory for Infrared Astronomy (SOFIA). 
The reduction will leave $35,000,000 in fiscal year 1996 to 
begin this program to replace the Kuiper Airborne Observatory.
      An increase of $51,500,000 for the Gravity Probe-B 
program which was not included in the budget request.
      A decrease of $5,000,000 for the Space Infrared Telescope 
Facility, leaving $10,000,000 to begin this effort. NASA is 
directed to provide no additional funding for this effort 
unless specifically approved by the House and Senate Committees 
on Appropriations.
      The conferees agree to provide $20,000,000 for initiation 
of the Solar-Terrestrial Probes program. The funding includes 
$15,000,000 to begin the TIMED mission and $5,000,000 for 
design studies of the inner magnetospheric imager.
      The conference agreement includes an additional 
$3,000,000 for the university explorer program to develop 
small, inexpensive spacecraft for astronomy and space physics 
missions.
      A general reduction of $20,000,000 for Life and 
Microgravity Science. The reduction is not to be taken against 
any space station programs. NASA should develop a plan that 
accommodates the budget decrease while minimizing its impact on 
the early scientific return from space station operations. This 
plan should emphasize how NASA will ensure the quality of the 
science it will conduct and maximize the value of the results 
it obtains from the early utilization of space station.
      An increase of $4,500,000 is provided for space radiation 
research in accordance with direction contained in House report 
104-201.
      Within Mission to Planet Earth, the conference agreement 
contains a reduction of $6,000,000 for the Consortium for 
International Earth Sciences Information Network. The conferees 
agree that the Consortium and NASA are free to pursue 
programmatic options under existing contracts between CIESIN 
and NASA and the Consortium is not precluded from competing for 
future contracts with NASA. A further reduction of $75,000,000 
is to be distributed in accordance with normal reprogramming 
guidelines. The conferees are in agreement on the following:
      NASA should work with the Department of Agriculture to 
ensure that remote sensing data collected through this program 
will be better used for agriculture and resource management;
      From within the funds for Mission to Planet Earth, NASA 
is urged to provide for continued development and refinement of 
visualization techniques and capabilities currently underway 
through the Jet Propulsion Laboratory to incorporate remotely 
sensed data and information into formal informational and 
educational programs:
            From within the available funding, $5,000,000 
        should be used toward full development of a windsat 
        mission;
            Any restructuring of the Earth Observing System 
        Data Information System which may result from the 
        recently issued National Academy of Sciences report 
        should be implemented in such a manner as to minimize 
        counterproductive disruptions at the Marshall Space 
        Flight Center.
      A general reduction of $30,000,000 to the Aeronautical 
Research and Technology portion of the budget to be distributed 
in accordance with normal reprogramming guidelines. The 
conferees note that NASA and the FAA have recently established 
a mechanism to coordinate their efforts toward an advanced air 
traffic management system. While the House reduced the budget 
request by $20,000,000 because such an agreement had not yet 
been reached, the conferees believe some reduction in funding 
is still achievable and the program is not exempt from the 
general reduction. Likewise, the conferees do not intend that 
the entire reduction be applied against the High Performance 
Computing and Communications (HPCC) program, nor is the program 
exempt from reduction. The conferees recognize the national 
interest served by providing the public access to earth and 
space images and data through a national information 
infrastructure and strongly support funding to carry out such 
NASA educational and public outreach activities funded in the 
HPCC account.
      Within the Space Access and Technology portion of the 
account, a reduction of $7,000,000 from the Clean Car program, 
a reduction of $21,300,000 for the Earth Applications Systems 
to return the program to the fiscal year 1995 funding level, an 
increase of $3,000,000 for commercial space activities to be 
used only as provided for in authorizing legislation, an 
increase of $4,500,000 for a rural state technology transfer 
center as provided for in authorizing legislation. The 
conference agreement deletes without prejudice the increase of 
$20,000,000 proposed by the Senate for development of the 
reusable launch vehicle (X-33). Nonetheless, the conferees have 
significant concerns over the current funding profile for this 
ambitious developmental effort in that amounts proposed for the 
initial years may not be adequate to resolve technical design 
and engineering issues necessary to support scheduled 
investment decisions by private industry. The conferees are 
very supportive of this innovative public-private partnership 
in developing a more efficient and commercially viable launch 
system and direct NASA to conduct a re-examination of the 
current funding profile, including amounts recommended for the 
remainder of fiscal year 1996. The conferees expect NASA to 
submit its findings and recommendations in this regard in a 
report to accompany its justifications for the fiscal year 1997 
budget, and to request a reprogramming, if necessary, to 
optimize initial developmental efforts during the balance of 
the current year.
      A general reduction of $20,000,000 for the mission 
communications program, to be distributed in accordance with 
established reprogramming procedures.
      A general reduction of $16,500,000 for Academic Programs, 
leaving funding at the fiscal year 1995 level. The conferees 
urge NASA to consider funding the Discovery Center project and 
the Rural Teacher Resource Center. These projects are aimed at 
significantly enhancing science, educational, and outreach 
services for an underserved region of the country. The Oregon 
State System for Higher Education is developing a network 
infrastructure for advanced technology research and education 
utilizing high speed and high capacity communications systems 
with a prior year grant of funds from NASA under its academic 
programs activity. The conferees understand that this project 
has received substantial industry contributions, however, some 
additional federal support may be necessary to facilitate the 
acquisition of equipment and for space modifications. NASA is 
urged to give priority consideration to assisting in the prompt 
completion of this important initiative.

                            mission support

      Amendment No. 105: Appropriates $2,502,200,000 for 
Mission Support, instead of $2,618,200,000 as proposed by the 
House and $2,484,200,000 as proposed by the Senate.
      The conference agreement reflects the following changes 
from the budget request:
      A decrease of $125,000,000 in salaries and related 
expenses resulting from the voluntary retirement of individuals 
during fiscal year 1995 which had not been anticipated when the 
fiscal year 1996 budget was submitted.
      A general reduction of $25,000,000 from research and 
operations support, subject to reprogramming guidelines.
      A reduction of $50,000,000 from space communications, to 
be applied at the agency's discretion subject to reprogramming 
guidelines.
      A reduction of $24,000,000 from construction of 
facilities. The conferees agree that NASA may use excess fiscal 
year 1994 funding, particularly identified excess planning and 
design funds, to satisfy fiscal year 1996 requirements.
      Amendment No. 106: Deletes House administrative provision 
regarding leasing of contractor funded facilities where such 
lease would amortize the contractor investment unless 
specifically approved in an appropriations Act.
      Amendment No. 107: Adds Senate language to the House 
administrative provision regarding transfer of facilities at 
Iuka, Mississippi. The new language will direct that any 
Federal entity having previous contact with the site will have 
responsibility for environmental remediation.
      Amendment No. 108: Deletes House administrative provision 
directing a study of closing or re-structuring NASA flight 
operations and research centers. The conferees agree to the 
Senate report language requesting periodic progress reports on 
the implementation of recommendations contained in the NASA 
zero-based review.
      Amendment No. 109: Deletes Senate administrative 
provision delaying the availability of $390,000,000 for Space 
Station until August 1, 1996. Adds an administrative provision 
providing up to $50,000,000 of transfer authority for use at 
the discretion of the Administrator.
      The conferees have agreed to include an administrative 
provision providing transfer authority to the National 
Aeronautics and Space Administration to deal with unforeseen 
emergencies. To ensure that there is no adverse effect on any 
NASA program, the conferees have included general transfer 
authority of up to $50,000,000 to be used at the direction of 
the Administrator subject to the case-by-case approval by the 
House and Senate Appropriations Committees.

                      national science foundation

      Amendment No. 110: Appropriates $2,274,000,000 for 
Research and Related Activities, instead of $2,254,000,000 as 
proposed by the House and $2,294,000,000 as proposed by the 
Senate.
      The conferees agree that the reduction within the 
Research and Related Activities account should be allocated by 
the National Science Foundation in accordance with its internal 
procedures for resource allocation, subject to approval by the 
House and Senate Committees on Appropriations.

                         u.s. antarctic program

      The conferees agree with the Senate report language 
calling for a government-wide policy review of the U.S. 
presence in the Antarctic to be conducted by the National 
Science and Technology Council and reiterate that such a review 
must include all program participants, including the Department 
of Defense. The review should be completed and submitted to the 
Congress no later than March 31, 1996.

                     optical and infrared astronomy

      The conferees recognize the need for the National Science 
Foundation to support modernizing the research infrastructure 
in astronomy and other disciplines. The conferees are equally 
supportive of the flexible matching requirements employed by 
the Foundation in its Academic Research Infrastructure program 
and expect they will be continued in fiscal year 1996.
      Amendment No. 111: Deletes language proposed by the 
Senate to fund fair housing activities under the Department of 
Justice. Language transferring such functions, with delayed 
implementation of April 1, 1997 is included under fair housing 
activities under title II of this Act.
      Amendment No. 112: The Senate bill contained a provision 
moving the Office of Federal Housing Enterprise Oversight 
(OFHEO), which is the financial safety and soundness regulator 
of Fannie Mae and Freddie Mac (collectively, ``GSEs''), from 
the Department of Housing and Urban Development to the 
Department of the Treasury. The conference agreement does not 
contain this provision. Nevertheless, the conferees want to 
emphasize the seriousness with which they view the underlying 
Senate provision.
      In particular, the primary function of OFHEO is to issue 
risk-based capital standards to ensure the safety and soundness 
of the GSEs, and that these standards, as yet unissued, were to 
be finalized by November 28, 1994. The conferees urge OFHEO to 
refocus its emphasis from lower priority activities, such as 
participation in conferences and political forums, to financial 
examinations and the development of final risk-based capital 
standards.

                      TITLE V--GENERAL PROVISIONS

      Amendment No. 113: Makes technical language change.
      Amendment No. 114: Deletes language proposed by the House 
and stricken by the Senate regarding contractor conversions at 
the Environmental Protection Agency. Additional language 
relative to this matter is included in amendment numbered 65.
      Inserts language directing FEMA to sell surplus mobile 
homes/trailers from its inventory. Additional information on 
this matter is discussed under amendment numbered 97.
      Amendment No. 115: Inserts language proposed by the 
Senate which allows the use of other funds available to the 
Department of Health and Human Services to facilitate 
termination of the Office of Consumer Affairs. This matter is 
also mentioned in amendment numbered 101.
      Amendment No. 116: Deletes language proposed by the 
Senate regarding energy savings at Federal facilities.

                   Conference Total--With Comparisons

      The total new budget (obligational) authority, for the 
fiscal year 1996 recommended by the Committee of Conference, 
with comparisons to the fiscal year 1995 amount, the 1996 
budget estimates, and the House and Senate bills for 1996 
follow:
New budget (obligational) authority, fiscal year 1995... $89,920,161,061
Budget estimates of new (obligational) authority, fiscal 
    year 1996...........................................  89,869,762,093
House bill, fiscal year 1996............................  79,697,360,000
Senate bill, fiscal year 1996...........................  81,009,212,000
Conference agreement, fiscal year 1996..................  80,591,927,000
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      1995..............................................  -9,328,234,061
    Budget estimates of new (obligational) authority, 
      fiscal year 1996..................................  -9,277,835,093
    House bill, fiscal year 1996........................    +894,567,000
    Senate bill, fiscal year 1996.......................    -417,285,000

                                   Jerry Lewis,
                                   Tom Delay,
                                   Barbara F. Vucanovich,
                                   James T. Walsh,
                                   David L. Hobson,
                                   Joe Knollenberg,
                                   Rodney P. Frelinghuysen,
                                   Mark W. Neumann,
                                   Bob Livingston,
                                 Managers on the Part of the House.
                                   Christopher S. Bond,
                                   Conrad Burns,
                                   Ted Stevens,
                                   Richard C. Shelby,
                                   Robert F. Bennett,
                                   Ben Nighthorse Campbell,
                                   Mark O. Hatfield,
                                   Barbara A. Mikulski,
                                   Patrick J. Leahy,
                                   J. Bennett Johnston,
                                   J. Robert Kerry,
                                   Robert C. Byrd,
                                Managers on the Part of the Senate.