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107th Congress                                            Rept. 107-640
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2

======================================================================



 
             HOUSING AFFORDABILITY FOR AMERICA ACT OF 2002

                                _______
                                

 September 17, 2002.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Oxley, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3995]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 3995) to amend and extend certain laws relating to 
housing and community opportunity, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    50
Background and Need for Legislation..............................    51
Hearings.........................................................    56
Committee Consideration..........................................    58
Committee Votes..................................................    58
Committee Oversight Findings.....................................    63
Performance Goals and Objectives.................................    63
New Budget Authority, Entitlement Authority, and Tax Expenditures    64
Committee Cost Estimate..........................................    64
Congressional Budget Office Estimate.............................    64
Federal Mandates Statement.......................................    78
Advisory Committee Statement.....................................    78
Constitutional Authority Statement...............................    79
Applicability to Legislative Branch..............................    79
Section-by-Section Analysis of the Legislation...................    79
Changes in Existing Law Made by the Bill, as Reported............   102
Dissenting Views.................................................   179

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Housing 
Affordability for America Act of 2002''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.

             TITLE I--HOME INVESTMENT PARTNERSHIPS PROGRAM

Sec. 101. Matching grants for State and local affordable housing trust 
funds.
Sec. 102. 3-year on-site inspection cycle for tax credit projects.
Sec. 103. Repeal of limitations on program assistance as percentage of 
operating budget.
Sec. 104. Eligibility of room additions for use for grandparents and 
grandchildren.
Sec. 105. Program year for matching contributions.
Sec. 106. Membership of boards of eligible community housing 
development organizations.
Sec. 107. Monitoring of compliance.
Sec. 108. Downpayment assistance initiative.
Sec. 109. Homeownership for municipal employees.

                    TITLE II--FHA MORTGAGE INSURANCE

       Subtitle A--Multifamily Housing and Health Care Facilities

Sec. 201. Indexing of multifamily mortgage limits.
Sec. 202. High-cost areas.
Sec. 203. Standards and need for health care facility mortgage 
insurance.
Sec. 204. Hospital mortgage insurance loss mitigation demonstration 
program.

                   Subtitle B--Single Family Housing

Sec. 221. Downpayment simplification.
Sec. 222. Reduced downpayment requirements for loans for teachers and 
public safety officers.
Sec. 223. Community partners next door program.
Sec. 224. Public safety officer home ownership in at-risk areas.
Sec. 225. Hybrid adjustable rate mortgages.
Sec. 226. Uniform national loan limit for home equity conversion 
mortgages.
Sec. 227. Prohibition of investor and nonprofit owners under 
rehabilitation loan program.
Sec. 228. Rehabilitation loan advances.
Sec. 229. Nonprofit purchasers under property disposition.
Sec. 230. Extension of holding period.
Sec. 231. Pilot program for mandatory first-time homebuyer counseling 
for properties in high foreclosure neighborhoods.
Sec. 232. Disposition of assets in revitalization areas.

    TITLE III--SUPPORTIVE HOUSING FOR ELDERLY AND DISABLED FAMILIES

Sec. 301. Authorization of appropriations for grants for repairs to 
federally assisted housing for the elderly.
Sec. 302. Service coordinators for supportive housing for persons with 
disabilities.
Sec. 303. Demonstration program for elderly housing for 
intergenerational families.
Sec. 304. Treatment of projects subject to foreclosure.

         TITLE IV--SECTION 8 RENTAL HOUSING ASSISTANCE PROGRAM

Sec. 401. Housing voucher demonstration.
Sec. 402. Flexibility to assist hard-to-house families.
Sec. 403. Clarification on prohibition of re-screening of tenants.
Sec. 404. PHA administrative fees.
Sec. 405. Ensuring ability to use enhanced vouchers.
Sec. 406. Treatment of overhoused assisted families.
Sec. 407. Extension of manufactured housing demonstration program.
Sec. 408. Extension of project-based section 8 contract renewals.
Sec. 409. Inspection of units.
Sec. 410. Escrow of tenant rent in cases of owner failure to maintain 
unit.
Sec. 411. Project-based vouchers modifications.
Sec. 412. Expanded use of enhanced vouchers.
Sec. 413. Demonstration program for rental assistance for grandparent-
headed or relative-headed families.
Sec. 414. Eligibility of grandparent-headed and relative-headed 
families for family unification assistance.
Sec. 415. Increased payment standard.
Sec. 416. Protection of innocent tenants.

                        TITLE V--PUBLIC HOUSING

                     Subtitle A--General Provisions

Sec. 501. PHA joint ventures.
Sec. 502. Third-party public housing assessment system.
Sec. 503. Public housing agency plans for certain small public housing 
agencies.
Sec. 504. Affordable assisted living facilities demonstration program.
Sec. 505. Protection of innocent tenants.

               Subtitle B--HOPE VI Revitalization Program

Sec. 521. Selection criteria.
Sec. 522. Authorization of appropriations.
Sec. 523. Extension of program.
Sec. 524. HOPE VI grants for assisting affordable housing through Main 
Street projects.

                  TITLE VI--HOMELESS HOUSING PROGRAMS

Sec. 601. United States Interagency Council on Homelessness.
Sec. 602. Federal Emergency Management Agency food and shelter program.
Sec. 603. Emergency shelter grants program.
Sec. 604. Supportive housing program.
Sec. 605. Section 8 assistance for single room occupancy dwellings.
Sec. 606. Shelter plus care.
Sec. 607. Housing for domestic violence and sexual assault victims.
Sec. 608. National goal of ending homelessness.
Sec. 609. Clerical amendments.

                   TITLE VII--NATIVE AMERICAN HOUSING

Sec. 701. Reauthorization of Native American Housing and Self-
Determination Act of 1996.
Sec. 702. Comprehensive planning under Native American housing block 
grant program.
Sec. 703. Lands Title Report Commission.

                  TITLE VIII--HOUSING IMPACT ANALYSIS

Sec. 801. Applicability.
Sec. 802. Exception for certain banking rules.
Sec. 803. Statement of proposed rulemaking.
Sec. 804. Initial housing impact analysis.
Sec. 805. Final housing impact analysis.
Sec. 806. Avoidance of duplicative or unnecessary analyses.
Sec. 807. Preparation of analyses.
Sec. 808. Effect on other law.
Sec. 809. Procedure for waiver or delay of completion.
Sec. 810. Definitions.
Sec. 811. Development.
Sec. 812. Judicial review.

                    TITLE IX--OTHER HOUSING PROGRAMS

Sec. 901. GNMA guarantee fee.
Sec. 902. Housing counseling programs.
Sec. 903. Assistance for self-help housing providers.
Sec. 904. Housing opportunities for persons with AIDS.
Sec. 905. Use of CDBG amounts for construction of tornado-safe shelter 
for manufactured housing parks.
Sec. 906. Use of CDBG amounts to administer renewal communities.
Sec. 907. Subsidy layering review.
Sec. 908. Study of community renewal program.
Sec. 909. Correction of inequities in the second round of empowerment 
zones.
Sec. 910. Employment opportunities in public and Indian housing 
agencies.
Sec. 911. Assistance for nonprofit purchasers preserving affordable 
housing.
Sec. 912. Homeownership for municipal employees.
Sec. 913. Sense of Congress regarding HUD Office of Disability Policy.
Sec. 914. Transfer of rural multifamily rental housing projects to 
nonprofits and local housing authorities.
Sec. 915. Sense of Congress regarding consumer protection and home 
warranties.
Sec. 916. Demonstration program for affordable housing database.
Sec. 917. HUD study regarding Main Street partnership.
Sec. 918. Contractual commitments for rural multifamily rental housing.

             TITLE I--HOME INVESTMENT PARTNERSHIPS PROGRAM

SEC. 101. MATCHING GRANTS FOR STATE AND LOCAL AFFORDABLE HOUSING TRUST 
                    FUNDS.

  (a) In General.--Title II of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended by adding 
at the end the following new subtitle:

 ``Subtitle G--Matching Grants for State and Local Affordable Housing 
                              Trust Funds

``SEC. 292. MATCHING GRANT PROGRAM.

  ``(a) Findings.--The Congress finds the following:
          ``(1) There are more than 280 housing trust funds in the 
        United States. 36 States have created housing trust funds and 
        the remainder were created by cities and counties.
          ``(2) More than $500,000,000 is spent for affordable housing 
        through these trust funds every year and this amount is 
        increasing. On average, for every dollar committed to a housing 
        project by a housing trust fund, another $5 to $10 is leveraged 
        in other public and private resources.
          ``(3) Hundreds of thousands of housing units have been 
        supported through housing trust funds.
          ``(4) Housing trust funds support a variety of housing 
        activities for low- and very low-income households, including 
        new construction, preservation of existing housing, emergency 
        repairs, homeless shelters, housing-related services, and 
        capacity building for nonprofit organizations.
          ``(5) At any given time, as many as 50 additional 
        jurisdictions are considering the creation of a housing trust 
        fund.
          ``(6) These unique funds are a fundamental aspect of emerging 
        housing policy in the United States.
          ``(7) Housing trust funds have demonstrated that when 
        government makes a commitment to address critical housing 
        needs, the on-going dedicated source of revenue allows for more 
        intelligent planning to address housing needs and for improved 
        proposals submitted by the housing industry in an effort to 
        effectively use existing resources.
          ``(8) Housing trust funds enable jurisdictions to elevate 
        funding for their critical housing needs by committing 
        resources to a process that treats affordable housing as an 
        essential component of maintaining healthy communities.
          ``(9) Jurisdictions have documented increased jobs, growing 
        sales taxes, higher property tax revenues, and many other 
        economic benefits from the operation of their housing trust 
        funds.
          ``(10) Providing federal incentives to encourage the 
        establishment of more State and local housing trust funds, and 
        providing Federal funds for the more than 280 existing housing 
        trust funds, would be a positive action in addressing the 
        affordable housing crisis.
  ``(b) In General.--The Secretary of Housing and Urban Development may 
make grants under this section to affordable housing trust funds that 
are distinct funds, established by States and units of general local 
government, that use public revenue to support the production, 
preservation, and rehabilitation of affordable housing, as determined 
by the Secretary.
  ``(c) Allocations for States and Units of General Local Government.--
The Secretary shall use the total amount made available for grants 
under this section for each fiscal year to provide such grants to 
affordable housing trust funds of States and units of general local 
government. Of such total amount, the Secretary shall allocate 40 
percent for grants for affordable housing trust funds of States and 60 
percent for grants for affordable housing trust funds of units of 
general local government. Each State affordable housing trust fund 
shall receive at least 1 percent of the amount allocated for the 
States.
  ``(d) Matching Requirement.--The Secretary may not make a grant under 
this section for any fiscal year to any affordable housing trust fund 
in an amount in excess of the amount that the State or local government 
administering the trust fund certifies, as the Secretary shall require, 
that will be contributed from non-Federal sources during such fiscal 
year to the trust fund for use only for production, preservation, and 
rehabilitation of affordable housing.
  ``(e) Use Requirements.--Amounts provided from a grant under this 
section shall be subject to the following requirements:
          ``(1) Distribution to eligible entities.--Grant amounts under 
        this section (excluding any amounts used under paragraph (2)) 
        shall be distributed to eligible entities for use by such 
        entities only for eligible activities in the jurisdiction 
        served by the affordable housing trust fund, as follows:
                  ``(A) Use for rental housing for extremely low-income 
                families.--75 percent of such amounts shall be 
                distributed for use only for eligible activities 
                relating to qualified affordable housing that is 
                available for rental by extremely low-income families 
                in the jurisdiction served by the affordable housing 
                trust fund. Such rental housing shall include limited 
                equity cooperative housing, as such term is defined in 
                section 143(k) of the Internal Revenue Code of 1986 (26 
                U.S.C 143(k)).
                  ``(B) Use for rental housing or homeownership for 
                low-income families.--25 percent of such amounts shall 
                be distributed for use only for eligible activities 
                relating to qualified affordable housing that is 
                available for rental by low-income families in the 
                jurisdiction served by the affordable housing trust 
                fund, or for homeownership assistance for low-income 
                families in such jurisdiction. Such rental housing and 
                homes for homeownership shall include housing of a 
                cooperative housing corporation, as such term as 
                defined in section 216(b) of the Internal Revenue Code 
                of 1986 (26 U.S.C. 216(b)).
          ``(2) Operating assistance for nonprofit housing development 
        organizations.--An affordable housing trust fund that receives 
        a grant under this section may use not more than 5 percent of 
        such grant amounts to provide assistance to nonprofit 
        organizations involved in the development, rehabilitation, or 
        preservation of affordable rental housing for payment of 
        operating costs of such organizations. Such nonprofit 
        organizations shall include community housing development 
        organizations (as such term is defined in section 104 of this 
        Act, community development financial institutions (as such term 
        is defined in section 103 of the Community Development Banking 
        and Financial Institutions Act of 1994 (12 U.S.C. 4702)), 
        community development corporations (as such term is defined in 
        section 31131 of the National Community Economic Partnership 
        Act of 1994 (42 U.S.C. 13851)), and community-based development 
        organizations.
          ``(3) Cost limits.--The Secretary shall establish limitations 
        on the amount of grant amounts that may be used, on a per unit 
        basis, for eligible activities. Such limitations shall be the 
        same as the per unit cost limits established pursuant to 
        section 212(e), as adjusted annually, and established by number 
        of bedrooms, market area, and eligible activity.
  ``(f) Allocation Plan.--
          ``(1) Requirement.--With respect to a fiscal year, an 
        affordable housing trust fund shall be eligible to receive a 
        grant under this section for such fiscal year only if the trust 
        fund has established an allocation plan that has been submitted 
        to the Secretary and reviewed and approved by the Secretary as 
        in accordance with this subsection. The Secretary may 
        disapprove an allocation plan only if the plan fails to comply 
        with requirements set forth in this section.
          ``(2) Establishment.--An allocation plan in accordance with 
        this subsection is a plan, established by an affordable housing 
        trust fund for a fiscal year, for the distribution of grant 
        amounts provided under this section to the trust fund for such 
        fiscal year.
          ``(3) Notice.--In establishing an allocation plan, the 
        affordable housing trust fund shall notify the public of the 
        establishment of the plan, provide an opportunity for public 
        comments regarding the plan, consider any public comments 
        received, and make the completed plan available to the public.
          ``(4) Contents.--An allocation plan of an affordable housing 
        trust fund shall include the following information:
                  ``(A) Application requirements for eligible entities 
                and subrecipients.--The allocation plan shall set forth 
                the requirements for eligible entities and eligible 
                subrecipients to apply to receive assistance from grant 
                amounts under this section, including a requirement 
                that each such application include--
                          ``(i) a description of the eligible 
                        activities to be conducted using such 
                        assistance; and
                          ``(ii) a certification by the applicant that 
                        any housing units assisted with such assistance 
                        will comply with the requirements under--
                                  ``(I) subsection (k)(9)(A) (relating 
                                to rents charged);
                                  ``(II) subsection (k)(9)(B) (relating 
                                to tenant rent contribution);
                                  ``(III) subsection (k)(9)(C) 
                                (relating to availability of units for 
                                voucher holders); and
                                  ``(IV) subsection (k)(9)(E) (relating 
                                to use as qualified affordable housing 
                                for 40 years).
                  ``(B) Selection and preference criteria for eligible 
                entities and subrecipients.--The allocation plan shall 
                set forth the factors for consideration in selecting 
                among applicants that meet the application requirements 
                set forth pursuant to subparagraph (A), which shall 
                give preference to applicants based on--
                          ``(i) the amount of assistance leveraged by 
                        the applicant from private and other non-
                        Federal sources for carrying out the eligible 
                        activities to be funded with assistance from 
                        grant amounts under this section, including 
                        assistance made available under section 8 of 
                        the United States Housing Act of 1937 (42 
                        U.S.C. 1437f) that is devoted to the project 
                        that contains the qualified affordable housing 
                        to be assisted with such assistance;
                          ``(ii) the extent of local assistance that 
                        will be provided in carrying out the eligible 
                        activities, including--
                                  ``(I) financial assistance;
                                  ``(II) the extent to which the 
                                applicant has worked to address issues 
                                of siting and exclusionary zoning or 
                                other policies that are barriers to 
                                affordable housing with the unit of 
                                general local government in which the 
                                housing to be assisted with such 
                                assistance will be located; and
                                  ``(III) the extent to which the 
                                applicant has worked with the unit of 
                                general local government to reduce the 
                                barriers to affordable housing;
                          ``(iii) the degree to which the project in 
                        which the qualified affordable housing will be 
                        located will have residents of various incomes;
                          ``(iv) the extent of employment and other 
                        economic opportunities for low-income families 
                        in the area in which the housing will be 
                        located;
                          ``(v) the extent to which the applicant 
                        demonstrates the ability to maintain dwelling 
                        units as qualified affordable housing through 
                        the use of assistance made available under this 
                        section, assistance leveraged from non-Federal 
                        sources, assistance made available under 
                        section 8 of the United States Housing Act of 
                        1937 (42 U.S.C. 1437f), State or local 
                        assistance, programs to increase tenant income, 
                        cross-subsidization, and any other resources;
                          ``(vi) the extent to which the applicant 
                        demonstrates that the county in which the 
                        housing is to be located is experiencing an 
                        extremely low vacancy rate;
                          ``(vii) the extent to which the percentage of 
                        the housing located in such county that is 
                        extremely old housing exceeds 35 percent;
                          ``(viii) whether the applicant has provided 
                        that--
                                  ``(I) 75 percent of the grant amounts 
                                will be used for eligible activities 
                                relating to housing located in census 
                                tracts in which the number of families 
                                having incomes less than the poverty 
                                line is less than 20 percent or in 
                                communities undergoing revitalization; 
                                and
                                  ``(II) 25 percent of the grant 
                                amounts will be used for eligible 
                                activities relating to housing that is 
                                located in census tracts in which the 
                                number of families having incomes less 
                                than the poverty line is greater than 
                                20 percent and is not located in a 
                                community undergoing revitalization; 
                                and
                          ``(ix) whether the applicant has provided 
                        that--
                                  ``(I) not less than 45 percent of the 
                                grant amounts will be used for eligible 
                                activities relating to housing that is 
                                affordable to families having incomes 
                                less than 30 percent of the greater of 
                                (aa) the median income for the area in 
                                which the housing is located, or (bb) 
                                the median income for the State in 
                                which the housing is located;
                                  ``(II) not less than 30 percent of 
                                the grant amounts will be used for 
                                eligible activities relating to housing 
                                that is affordable to families having 
                                incomes not exceeding the amount earned 
                                by a family having one individual (or 
                                1.5 individuals in the case of a family 
                                consisting of 3 or more individuals), 
                                who is employed on a full-time basis in 
                                a position paying the higher of (aa) 
                                the Federal minimum wage under section 
                                6(a)(1) of the Fair Labor Standards Act 
                                of 1938 (29 U.S.C. 206(a)(1)), or (bb) 
                                the minimum wage under State law of the 
                                State in which the housing is located; 
                                and
                                  ``(III) not more than 25 percent of 
                                the grant amounts will be used for 
                                eligible activities relating to housing 
                                for families having incomes that (aa) 
                                are greater than the incomes referred 
                                to in subclauses (I) and (II) of this 
                                clause, but (bb) do not exceed the 
                                higher of the median income for the 
                                State in which the housing is located 
                                or 80 percent of the median income for 
                                the area in which the housing is 
                                located.
          ``(5) Consolidated plan.--The Secretary shall provide that a 
        State or unit of general local government administering an 
        affordable housing trust fund may comply with the requirements 
        under this subsection for submission of an allocation plan 
        through the inclusion of any appropriate information in a 
        single consolidated submission used for purposes of applying 
        for other community planning and development and housing 
        assistance programs administered by the Secretary.
  ``(g) Forms of Assistance.--
          ``(1) In general.--Assistance from grant amounts under this 
        section may be distributed in the form of capital grants, 
        noninterest bearing or low-interest loans or advances, deferred 
        payment loans, guarantees, and any other forms of assistance 
        approved by the Secretary.
          ``(2) Repayments.--If an affordable housing trust fund awards 
        assistance from grant amounts under this section in the form of 
        a loan or other mechanism by which funds are later repaid to 
        the trust fund, any repayments received by the trust fund shall 
        be distributed by the trust fund in accordance with the 
        allocation plan under subsection (f) for the trust fund for the 
        fiscal year in which such repayments are made.
  ``(h) Coordination With Other Assistance.--In distributing assistance 
from grant amounts under this section, each affordable housing trust 
fund shall, to the maximum extent practicable, coordinate such 
distribution with the provision of other affordable housing assistance 
by the trust fund, including--
          ``(1) in the case of any State, housing credit dollar amounts 
        allocated by the State under section 42(h) of the Internal 
        Revenue Code of 1986;
          ``(2) assistance otherwise made available under this title or 
        the community development block grant program under title I of 
        the Housing and Community Development Act of 1974 (42 U.S.C. 
        5301 et seq.); and
          ``(3) private activity bonds.
  ``(i) Administration of Program By Subrecipient.--At the discretion 
of the affordable housing trust fund, the trust fund may select an 
eligible subrecipient to carry out all or a portion of the trust fund's 
responsibilities under this section, in accordance with this section.
  ``(j) Labor Standards.--Each affordable housing trust fund receiving 
grant amounts under this section shall ensure that contracts for 
eligible activities assisted with such amounts comply with the same 
requirements under section 286 that are applicable to contracts for 
construction of affordable housing assisted under such Act.
  ``(k) Definitions.--For purposes of this section, the following 
definitions shall apply:
          ``(1) Eligible activities.--The term `eligible activities' 
        means activities relating to the providing qualified affordable 
        housing, including--
                  ``(A) the construction of new housing;
                  ``(B) the acquisition of real property;
                  ``(C) site preparation and improvement, including 
                demolition;
                  ``(D) rehabilitation of existing housing; and
                  ``(E) providing incentives to maintain existing 
                housing as qualified affordable housing and to 
                establish or extend any low-income affordability 
                restrictions for such housing, including covering 
                capital expenditures and operating costs.
          ``(2) Eligible entity.--The term `eligible entity' includes 
        any public or private nonprofit or for-profit entity, unit of 
        general local government, regional planning entity, and any 
        other entity engaged in the development, rehabilitation, or 
        preservation of qualified affordable housing, as determined by 
        the Secretary.
          ``(3) Eligible subrecipient.--The term `eligible 
        subrecipient' means a public agency or a nonprofit 
        organization, including a community development corporation, a 
        community development financial institution, a State or local 
        housing trust fund, and any other intermediary selected by an 
        affordable housing trust fund to administer all or a portion of 
        the trust fund's responsibilities under this section. The term 
        does not include any public agency or nonprofit organization 
        that receives money from an affordable housing trust fund 
        solely as a developer or owner of housing.
          ``(4) Extremely low-income families.--The term `extremely 
        low-income families' means families (as such term is defined in 
        section 3(b) of the United States Housing Act of 1937 (42 
        U.S.C. 1437a(b))) whose incomes 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 incomes.
          ``(5) Extremely low vacancy rate.--The term `extremely low 
        vacancy rate' means a housing or rental vacancy rate of 2 
        percent or less.
          ``(6) Extremely old housing.--The term `extremely old 
        housing' means housing that is 45 years old or older.
          ``(7) Low-income families.--The term `low-income families' 
        has the meaning given such term in section 3(b) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437a(b)).
          ``(8) Poverty line.--The term `poverty line' has the meaning 
        given such term in section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981, including any revision required by 
        such section.
          ``(9) Qualified affordable housing.--The term `qualified 
        affordable housing' means a rental dwelling unit that is 
        subject to legally binding commitments that ensure that the 
        dwelling unit meets all of the following requirements:
                  ``(A) Rents.--The dwelling unit bears a rent not 
                greater than the lesser of--
                          ``(i) the existing fair market rental 
                        established by the Secretary under section 8(c) 
                        of the United States Housing Act of 1937 (42 
                        U.S.C. 1437f(c)) for a dwelling unit of the 
                        same size in the same market area; and
                          ``(ii) a rent that does not exceed 30 percent 
                        of the adjusted income of a family whose income 
                        equals 65 percent of the median income for the 
                        area, as determined by the Secretary, with 
                        adjustment for number of bedrooms in the unit, 
                        except that the Secretary may establish income 
                        ceilings higher or lower than 65 percent of the 
                        median for the area on the basis of the 
                        findings of the Secretary that such variations 
                        are necessary because of prevailing levels of 
                        construction costs or fair market rents, or 
                        unusually high or low family incomes.
                  ``(B) Tenant rent contribution.--The contribution 
                toward rent by the family residing in the dwelling unit 
                will not exceed 30 percent of the adjusted income of 
                such family.
                  ``(C) Availability of units for voucher holders.--The 
                dwelling unit--
                          ``(i) is located in a project within which a 
                        percentage of units are made available only for 
                        occupancy by families assisted under the 
                        voucher program under section 8(o) of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437f(o)) (including project-based assistance 
                        under section 8(o)(13)) on the same basis as 
                        other families eligible for occupancy of the 
                        project (except that only the voucher holder's 
                        expected share of rent shall be considered), 
                        which percentage shall not be less than the 
                        percentage of the total cost of developing, 
                        rehabilitating, or preserving the project that 
                        is funded with assistance under this section; 
                        and
                          ``(ii) is one of the units that is subject to 
                        such occupancy requirements.
                  ``(D) Non-discrimination against voucher holders.--
                The dwelling unit is located in a project in which all 
                dwelling units are subject to enforceable restrictions 
                that provide that a unit may not be refused for leasing 
                to a holder of a voucher of eligibility under section 8 
                of the United States Housing Act of 1937 (42 U.S.C. 
                1437f) because of the status of the prospective tenant 
                as a holder of such voucher.
                  ``(E) Duration of use.--The dwelling unit will 
                continue to be subject to the requirements under this 
                paragraph for not less than 40 years.
          ``(10) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
  ``(l) Authorizations of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for fiscal year 2003 and 
each fiscal year thereafter for grants under this section. Amounts made 
available for the HOME Investment Partnerships Act shall not be 
available for assistance under this subtitle.
  ``(m) Inapplicability of Home Provisions.--Except as specifically 
provided in this subtitle, no requirement under, or provision of, title 
I or subtitles A through F of this title shall apply to assistance 
provided under this subtitle.''.
  (b) Conforming Amendment.--Section 201 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12701 note) is amended by 
striking ``This title'' and inserting ``Subtitles A through F of this 
title''.

SEC. 102. 3-YEAR ON-SITE INSPECTION CYCLE FOR TAX CREDIT PROJECTS.

  Subsection (b) of section 226 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12756) is amended to read as follows:
  ``(b) Periodic Monitoring.--
          ``(1) Requirement.--Each participating jurisdiction shall 
        review the activities of owners of affordable housing for 
        rental that is assisted under this title to assess compliance 
        with the requirements of this title. Such review shall be 
        conducted in compliance with the provisions of paragraph (2) 
        (relating to frequency) and shall include on-site inspection to 
        determine compliance with housing codes and other applicable 
        regulations.
          ``(2) Frequency.--The review required by paragraph (1) shall 
        be conducted not less frequently than annually, except that, in 
        the case of affordable housing for rental that has been 
        allocated a low-income housing tax credit by a housing credit 
        agency pursuant to section 42 of the Internal Revenue Code 1986 
        and is not considered (under such regulations as the Secretary 
        shall prescribe) to be high-risk housing, the on-site 
        inspection referred to in paragraph (1) shall be conducted once 
        every 3 years, or more often as may be required under the 
        regulations issued pursuant to such section 42.
          ``(3) Inclusion in performance report.--The results of each 
        review of a participating jurisdiction shall be included in the 
        performance report of the jurisdiction that is submitted under 
        section 108(a) for the year in which the review is conducted 
        and shall be made available to the public.''.

SEC. 103. REPEAL OF LIMITATIONS ON PROGRAM ASSISTANCE AS PERCENTAGE OF 
                    OPERATING BUDGET.

  (a) Housing Education and Organizational Support.--Section 233(d) of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12773(d)) is amended--
          (1) by striking ``may not--'' and all that follows through 
        ``(1)'' and inserting ``may not''; and
          (2) by striking ``; or'' at the end of paragraph (1) and all 
        that follows through the end of paragraph (2) and inserting a 
        period.
  (b) Other Support for State and Local Housing Strategies.--The first 
sentence of section 243(b) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12783(b)) is amended by striking ``and shall 
provide not more than 20 percent of the operating budget of the 
contracting organization in any one year''.

SEC. 104. ELIGIBILITY OF ROOM ADDITIONS FOR USE FOR GRANDPARENTS AND 
                    GRANDCHILDREN.

  Section 104(8) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12704(8)) is amended by adding at the end the following 
new sentence: ``Such term also includes an additional room in, or a 
cottage housing opportunity unit installed adjacent to, an existing 1- 
to 4-family dwelling, that is necessary to permit the habitation, with 
the low-income family occupying the dwelling, of an elderly person who 
is a relative of the family and to avoid placement of such relative in 
an institutionalized setting, foster care, or other out-of-home 
setting.''.

SEC. 105. PROGRAM YEAR FOR MATCHING CONTRIBUTIONS.

  Section 220 of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12750) is amended--
          (1) in subsection (a)--
                  (A) by striking ``a fiscal year'' and inserting ``a 
                program year of the jurisdiction''; and
                  (B) by striking ``such fiscal year'' and inserting 
                ``such program year''; and
          (2) in subsection (d)--
                  (A) in paragraph (1), by striking ``fiscal year'' and 
                inserting ``program year of the jurisdiction'';
                  (B) in paragraph (3), by striking ``fiscal year'' 
                each place such term appears and inserting ``program 
                year''; and
                  (C) in paragraph (5), by striking ``fiscal year'' and 
                inserting ``program year of the jurisdiction''.

SEC. 106. MEMBERSHIP OF BOARDS OF ELIGIBLE COMMUNITY HOUSING 
                    DEVELOPMENT ORGANIZATIONS.

  Section 104(6) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12704(6)) is amended by adding at the end the following: 
``In establishing requirements for an organization to be considered a 
community housing development organization for purposes of this Act, 
the Secretary may not prohibit, limit, or restrict membership on the 
board by public employees who are not elected or appointed or who do 
not exercise policy-making or policy-determining functions.''.

SEC. 107. MONITORING OF COMPLIANCE.

  (a) Authority and Agreements.--Section 226 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12756) is amended--
          (1) in the second sentence of subsection (a)--
                  (A) by striking ``and''; and
                  (B) by inserting before the period at the end the 
                following: ``, and (3) such fees as may be established 
                by the participating jurisdiction pursuant to 
                subsection (c)'';
          (2) by redesignating subsection (c) as subsection (d); and
          (3) by inserting after subsection (b) the following new 
        subsection:
  ``(c) Monitoring Fees.--A participating jurisdiction may establish 
and charge reasonable fees to affordable housing projects assisted 
under this title for costs of monitoring compliance with the provisions 
of this title.''.
  (b) Use of Investment.--Section 212 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12742), as amended by the preceding 
provisions of this Act, is further amended by adding at the end the 
following new subsection:
  ``(h) Monitoring Fees.--Monitoring fees under section 226(c) for an 
affordable housing project may be paid for from amounts made available 
under this subtitle to the project, in accordance with an agreement 
pursuant to section 226(a).''.

SEC. 108. DOWNPAYMENT ASSISTANCE INITIATIVE.

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

                     ``Subtitle E--Other Assistance

``SEC. 271. DOWNPAYMENT ASSISTANCE INITIATIVE.

  ``(a) Grant Authority.--The Secretary may make grants to 
participating jurisdictions to assist low-income families to achieve 
homeownership, in accordance with this section.
  ``(b) Eligible Activities.--Amounts made available under this section 
may be used only for downpayment assistance toward the purchase of 
single family housing by low-income families who are first-time 
homebuyers. For purposes of this title, the term `downpayment 
assistance' means assistance to help a family acquire a principal 
residence.
  ``(c) Housing Strategy.--To be eligible to receive a grant under this 
section for a fiscal year, a participating jurisdiction shall include 
in its comprehensive housing affordability strategy under section 105 
for such year a description of the use of the grant amounts.
  ``(d) Formula Allocation.--For each fiscal year, the Secretary shall 
allocate any amounts made available for assistance under this section 
for the fiscal year in accordance with a formula, which shall be 
established by the Secretary, that considers a participating 
jurisdiction's need for and prior commitment to assistance to 
homebuyers. The formula may include minimum and maximum allocation 
amounts.
  ``(e) Reallocation.--If any amounts allocated to a participating 
jurisdiction under this section become available for reallocation, the 
amounts shall be reallocated to other participating jurisdictions in 
accordance with the formula established pursuant to subsection (c), 
except that if a local participating jurisdiction failed to receive 
amounts allocated under this section and is located in a State that is 
a participating jurisdiction, the funds shall be reallocated to the 
State.
  ``(f) Applicability of Other Provisions.--
          ``(1) In general.--Except as otherwise provided in this 
        section, grants under this section shall not be subject to the 
        provisions of this title.
          ``(2) Applicable provisions.--In addition to the requirements 
        of this section, grants under this section shall be subject to 
        the provisions of title I, sections 215(b), 218, 219, 221, 223, 
        224, and 226(a) of subtitle A of this title, and subtitle F of 
        this title.
          ``(3) References.--In applying the requirements of subtitle A 
        referred to in paragraph (2)--
                  ``(A) any references to funds under subtitle A shall 
                be considered to refer to amounts made available for 
                assistance under this section; and
                  ``(B) any references to funds allocated or 
                reallocated under section 217 or 217(d) shall be 
                considered to refer to amounts allocated or reallocated 
                under subsection (d) or (e) of this section, 
                respectively.
  ``(g) Administrative Costs.--Notwithstanding section 212(c), a 
participating jurisdiction may use funds under subtitle A for 
administrative and planning costs of the jurisdiction in carrying out 
this section, and the limitation in section 212(c) shall be based on 
the total amount of funds available under subtitle A and this section.
  ``(h) Funding.--There are authorized to be appropriated such sums as 
may be necessary to carry out this section for each of fiscal years 
2003 and 2004.''.
  (b) Relocation Assistance and Downpayment Assistance.--Subtitle F of 
title II of the Cranston-Gonzalez National Affordable Housing Act is 
amended by inserting after section 290 (42 U.S.C. 12840) the following 
new section:

``SEC. 291. RELOCATION ASSISTANCE AND DOWNPAYMENT ASSISTANCE.

  ``The Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 shall not apply to downpayment assistance under 
this title.''.

SEC. 109. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

  (a) Eligible Activities.--Paragraph (2) of section 215(b) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12745(b)(2)) is amended to read as follows:
          ``(2) is the principal residence of an owner who--
                  ``(A) is a member of a family that qualifies as a 
                low-income family--
                          ``(i) in the case of a contract to purchase 
                        existing housing, at the time of purchase;
                          ``(ii) in the case of a lease-purchase 
                        agreement for existing housing or for housing 
                        to be constructed, at the time the agreement is 
                        signed; or
                          ``(iii) in the case of a contract to purchase 
                        housing to be constructed, at the time the 
                        contract is signed; or
                  ``(B)(i) is a uniformed employee (which shall include 
                policemen, firemen, and sanitation and other 
                maintenance workers) or a teacher who is an employee, 
                of the participating jurisdiction (or an agency or 
                school district serving such jurisdiction) that is 
                investing funds made available under this subtitle to 
                support homeownership of the residence; and
                  ``(ii) is a member of a family whose income, at the 
                time referred to in clause (i), (ii), or (iii) of 
                subparagraph (A), as appropriate, and as determined by 
                the Secretary with adjustments for smaller and larger 
                families, does not exceed 115 percent of the median 
                income of the area, except that, with respect only to 
                such areas that the Secretary determines have high 
                housing costs, taking into consideration median house 
                prices and median family incomes for the area, such 
                income limitation shall be 150 percent of the median 
                income of the area, as determined by the Secretary with 
                adjustments for smaller and larger families;''.
  (b) Income Targeting.--Section 214(2) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12744(2)) is amended by 
inserting before the semicolon the following: ``or families described 
in section 215(b)(2)(B)''.
  (c) Eligible Investments.--Section 212(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(b)) is amended by 
adding at the end the following new sentence: ``Notwithstanding the 
preceding sentence, in the case of homeownership assistance for 
residences of owners described in section 215(b)(2)(B), funds made 
available under this subtitle may only be invested (1) to provide 
amounts for downpayments on mortgages, (2) to pay reasonable closing 
costs normally associated with the purchase of a residence, (3) to 
obtain pre- or post-purchase counseling relating to the financial and 
other obligations of homeownership, or (4) to subsidize mortgage 
interest rates.''.

                    TITLE II--FHA MORTGAGE INSURANCE

       Subtitle A--Multifamily Housing and Health Care Facilities

SEC. 201. INDEXING OF MULTIFAMILY MORTGAGE LIMITS.

  (a) Section 207 Limits.--Section 207(c)(3) of the National Housing 
Act (12 U.S.C. 1713(c)(3)) is amended--
          (1) by striking ``$11,250'' and inserting ``$17,460'';
          (2) by inserting before ``; and except that'' the following: 
        ``; except that the Secretary shall adjust each such dollar 
        amount limitation set forth in this paragraph (as such 
        limitation may have been previously adjusted pursuant to this 
        provision) effective January 1 of each year (beginning in 2003) 
        in accordance with the percentage increase, if any, during the 
        12-month period ending with the preceding October, in the 
        Annual Construction Cost Index of the Bureau of the Census of 
        the Department of Commerce''; and
          (3) by inserting after ``foregoing dollar amount limitations 
        contained in this paragraph'' the following: ``(as such 
        limitations may have been previously adjusted pursuant to this 
        paragraph)''.
  (b) Section 213 Limits.--Section 213(b)(2) of the National Housing 
Act (12 U.S.C. 1715e(b)(2)) is amended--
          (1) by striking ``$38,025'', ``$42,120'', ``$50,310'', 
        ``$62,010'', and ``$70,200'', and inserting ``$41,207'', 
        ``$47,511'', ``$57,300'', ``$73,343'', and ``$81,708'', 
        respectively;
          (2) by striking ``$49,140'', ``$60,255'', ``$75,465'', and 
        ``$85,328'', and inserting ``$49,710'', ``$60,446'', 
        ``$78,197'', and ``$85,836'', respectively;
          (3) by inserting after the colon at the end of the first 
        proviso the following: ``Provided further, That the Secretary 
        shall adjust each such dollar amount limitation set forth in 
        this paragraph (as such limitation may have been previously 
        adjusted pursuant to this provision) effective January 1 of 
        each year (beginning in 2003) in accordance with the percentage 
        increase, if any, during the 12-month period ending with the 
        preceding October, in the Annual Construction Cost Index of the 
        Bureau of the Census of the Department of Commerce:''; and
          (4) by inserting after ``foregoing dollar amount limitations 
        contained in this paragraph'' the following: ``(as such 
        limitations may have been previously adjusted pursuant to this 
        paragraph)''.
  (c) Section 220 Limits.--Section 220(d)(3)(B)(iii) of the National 
Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is amended--
          (1) by inserting after ``foregoing dollar amount limitations 
        contained in this clause'', the first place such phrase 
        appears, the following: ``(as such limitations may have been 
        previously adjusted pursuant to this clause)''.
          (2) by inserting after ``Provided,'' the following: ``That 
        the Secretary shall adjust each such dollar amount limitation 
        set forth in this clause (as such limitation may have been 
        previously adjusted pursuant to this provision) effective 
        January 1 of each year (beginning in 2003) in accordance with 
        the percentage increase, if any, during the 12-month period 
        ending with the preceding October, in the Annual Construction 
        Cost Index of the Bureau of the Census of the Department of 
        Commerce: Provided further,''; and
          (3) by striking ``(as determined after the application of the 
        preceding proviso)'' and inserting ``(as such limitations may 
        have been previously adjusted pursuant to the preceding proviso 
        and as determined after application of any percentage increase 
        authorized in this clause relating to units with two, three, or 
        four or more bedrooms)''.
  (d) Section 221(d)(3) Limits.--Section 221(d)(3)(ii) of the National 
Housing Act (12 U.S.C. 1715l(d)(3)(ii)) is amended--
          (1) by inserting before ``; and except that'' the following: 
        ``; except that the Secretary shall adjust each such dollar 
        amount limitation set forth in this clause (as such limitation 
        may have been previously adjusted pursuant to this provision) 
        effective January 1 of each year (beginning in 2003) in 
        accordance with the percentage increase, if any, during the 12-
        month period ending with the preceding October, in the Annual 
        Construction Cost Index of the Bureau of the Census of the 
        Department of Commerce''; and
          (2) by inserting after ``foregoing dollar amount limitations 
        contained in this clause'' the following: ``(as such 
        limitations may have been previously adjusted pursuant to this 
        clause)''.
  (e) Section 221(d)(4) Limits.--Section 221(d)(4)(ii) of the National 
Housing Act (12 U.S.C. 1715l(d)(4)(ii)) is amended--
          (1) by inserting before ``; and except that'' the following: 
        ``; except that the Secretary shall adjust each such dollar 
        amount limitation set forth in this clause (as such limitation 
        may have been previously adjusted pursuant to this provision) 
        effective January 1 of each year (beginning in 2003) in 
        accordance with the percentage increase, if any, during the 12-
        month period ending with the preceding October, in the Annual 
        Construction Cost Index of the Bureau of the Census of the 
        Department of Commerce''; and
          (2) by inserting after ``foregoing dollar amount limitations 
        contained in this clause'' the following: ``(as such 
        limitations may have been previously adjusted pursuant to this 
        clause)''.
  (f) Section 231 Limits.--Section 231(c)(2) of the National Housing 
Act (12 U.S.C. 1715v(c)(2)) is amended--
          (1) by inserting before ``; and except that'' the following: 
        ``; except that the Secretary shall adjust each such dollar 
        amount limitation set forth in this paragraph (as such 
        limitation may have been previously adjusted pursuant to this 
        provision) effective January 1 of each year (beginning in 2003) 
        in accordance with the percentage increase, if any, during the 
        12-month period ending with the preceding October, in the 
        Annual Construction Cost Index of the Bureau of the Census of 
        the Department of Commerce''; and
          (2) by inserting after ``foregoing dollar amount limitations 
        contained in this paragraph'' the following: ``(as such 
        limitations may have been previously adjusted pursuant to this 
        paragraph)''.
  (g) Section 234 Limits.--Section 234(e)(3) of the National Housing 
Act (12 U.S.C. 1715y(e)(3)) is amended--
          (1) by inserting before ``; except that'' the second place 
        such phrase appears the following: ``; except that the 
        Secretary shall adjust each such dollar amount limitation set 
        forth in this paragraph (as such limitation may have been 
        previously adjusted pursuant to this provision) effective 
        January 1 of each year (beginning in 2003) in accordance with 
        the percentage increase, if any, during the 12-month period 
        ending with the preceding October, in the Annual Construction 
        Cost Index of the Bureau of the Census of the Department of 
        Commerce'';
          (2) by inserting after ``each of the foregoing dollar 
        amounts'' the following: ``(as such amounts may have been 
        previously adjusted pursuant to this paragraph)''; and
          (3) by inserting after ``foregoing dollar amount limitations 
        contained in this paragraph'' the following: ``(as such 
        limitations may have been previously adjusted pursuant to this 
        paragraph and increased pursuant to the preceding clause)''.

SEC. 202. HIGH-COST AREAS.

  In the National Housing Act, sections 207(c)(3), 213(b)(2), 
220(d)(3)(B)(iii), 221(d)(3)(ii), 221(d)(4)(ii), 231(c)(2), and 
234(e)(3) (12 U.S.C. 1713(c)(3), 1715e(b)(2), 1715k(d)(3)(B)(iii), 
1715l(d)(3)(ii), 1715l(d)(4)(ii), 1715v(c)(2)), and 1715y(e)(3)) are 
each amended--
          (1) by striking ``140 percent'' and inserting ``170 
        percent''; and
          (2) by striking ``110 percent'' and inserting ``140 
        percent''.

SEC. 203. STANDARDS AND NEED FOR HEALTH CARE FACILITY MORTGAGE 
                    INSURANCE.

  (a) Hospitals.--Paragraph (4) of section 242(d) of the National 
Housing Act (12 U.S.C. 1715z-7) is amended to read as follows:
          ``(4)(A) The Secretary shall require satisfactory evidence 
        that the hospital will be located in a State or political 
        subdivision of a State with reasonable minimum standards of 
        licensure and methods of operation for hospitals and 
        satisfactory assurance that such standards will be applied and 
        enforced with respect to the hospital.
          ``(B) The Secretary shall establish the means for determining 
        need and feasibility for the hospital. If the State has an 
        official procedure for determining need for hospitals, the 
        Secretary shall also require that such procedure be followed 
        before the application for insurance is submitted, and the 
        application shall document that need has also been established 
        under that procedure.''.
  (b) Nursing Homes, Intermediate Care Facilities, and Combined 
Facilities.--Section 232(d)(4) of the National Housing Act (12 U.S.C. 
1715w(d)(4)) is amended by striking the paragraph designation and all 
that follows through the end of subparagraph (A) and inserting the 
following:
          ``(4)(A)(i) The Secretary shall require satisfactory evidence 
        that a nursing home, intermediate care facility, or combined 
        nursing home and intermediate care facility will be located in 
        a State or political subdivision of a State with reasonable 
        minimum standards of licensure and methods of operation for 
        such homes, facilities, or combined homes and facilities. The 
        Secretary shall also require satisfactory assurance that such 
        standards will be applied and enforced with respect to the 
        home, facility, or combined home or facility.
          ``(ii) The Secretary shall establish the means for 
        determining need and feasibility for the home, facility, or 
        combined home and facility. If the State has an official 
        procedure for determining need for such homes, facilities, or 
        combined homes and facilities, the Secretary shall also require 
        that such procedure be followed before the application for 
        insurance is submitted, and the application shall document that 
        need has also been established under that procedure.''.

SEC. 204. HOSPITAL MORTGAGE INSURANCE LOSS MITIGATION DEMONSTRATION 
                    PROGRAM.

  (a) In General.--Section 242 of the National Housing Act (12 U.S.C. 
1715z-7) is amended by adding at the end the following new subsection:
  ``(i) Loss Mitigation Demonstration Program.--
          ``(1) In general.--Only to the extent or in such amounts as 
        are provided in advance in appropriation Acts to carry out this 
        subsection, the Secretary may carry out a program to 
        demonstrate the effectiveness of taking loss mitigation actions 
        for hospitals with mortgages that are insured under this 
        section to reduce the risk of, prevent, or cure defaults of 
        financially troubled hospitals, to reduce claim or holding 
        costs of loans that are assigned to the Secretary, or to 
        maximize the recovery on loan assets. The demonstration program 
        may be carried out only with respect to not more than 3 such 
        hospitals.
          ``(2) Loss mitigation actions.--Loss mitigation actions taken 
        under the demonstration program under this subsection may 
        include the following actions:
                  ``(A) Partial payment of a claim under the contract 
                for mortgage insurance under this section.
                  ``(B) Temporary provision of operating assistance 
                funds, including debt service.
                  ``(C) Provision of financial assistance for 
                maintenance, repair, alterations, or the cost of other 
                capital improvements, including for conversion of 
                excess capacity of hospitals to facilities providing 
                health care and supportive housing for elderly persons 
                and families, including assisted living facilities, 
                nursing homes, and supportive housing for the elderly.
          ``(3) Requirements for assistance.--A hospital may be 
        provided financial assistance under the demonstration program 
        only if--
                  ``(A) the hospital has secured binding commitments 
                for matching funds of not less than 10 percent of the 
                cost of such assistance; and
                  ``(B) the hospital has met the requirements of any 
                applicable State certificate of need or other licensing 
                requirement.
          ``(4) Limitations on assistance.--Any payments or financial 
        assistance or relief under this subsection shall be made at the 
        sole discretion of the Secretary and on terms acceptable to the 
        Secretary except that--
                  ``(A) the total amount of payments and financial 
                assistance and relief shall not exceed 30 percent of 
                the outstanding project indebtedness insured by the 
                Secretary; and
                  ``(B) the mortgagor shall agree to repay such total 
                amount to the Secretary upon terms and conditions 
                acceptable to the Secretary.
          ``(5) Final decision.--A decision by the Secretary to 
        exercise or forgo exercising any authority under this 
        subsection shall not be subject to judicial review.
          ``(6) Applications.--The Secretary shall provide for 
        hospitals to submit applications for participation in the 
        demonstration program under this subsection, which shall 
        include information sufficient to determine compliance with the 
        requirements under paragraph (3).
          ``(7) Termination.--The demonstration program under this 
        subsection shall terminate on December 31, 2004.''.
  (b) Report.--Not later than September 30, 2005, the Secretary shall 
submit a report to the Congress analyzing the demonstration program 
under the amendment made by subsection (a) and the extent to which, if 
any, the assistance provided under such program reduced the net cost to 
the General Insurance Fund as calculated on a net present value basis.

                   Subtitle B--Single Family Housing

SEC. 221. DOWNPAYMENT SIMPLIFICATION.

  (a) In General.--Section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)) is amended--
          (1) in paragraph (2)--
                  (A) in subparagraph (A), by realigning the matter 
                that precedes clause (ii) an additional 2 ems from the 
                left margin;
                  (B) in the matter that follows subparagraph 
                (B)(iii)--
                          (i) by striking the seventh sentence of such 
                        matter (relating to the maximum amount of a 
                        principal obligation of a mortgage) and all 
                        that follows through the end of the penultimate 
                        undesignated paragraph; and
                          (ii) by striking the second, third, and fifth 
                        sentences of such matter; and
                  (C) by striking subparagraph (B);
          (2) by transferring and inserting subparagraph (A) of 
        paragraph (10) after subparagraph (A) of paragraph (2) and 
        amending such transferred subparagraph--
                  (A) by striking all of the matter that precedes 
                clause (i) and inserting the following:
                  ``(B) not to exceed an amount equal to the sum of--
                ''; and
                  (B) in clause (ii)(IV), by striking ``an area of 
                the'' and inserting ``a'';
          (3) by transferring and inserting the last undesignated 
        paragraph of paragraph (2) (relating to disclosure notice) 
        after subsection (e), realigning such transferred paragraph so 
        as to be flush with the left margin, and amending such 
        transferred paragraph by inserting ``(f) Disclosure of Other 
        Mortgage Products.--'' before ``In conjunction'';
          (4) by transferring and inserting the sentence that 
        constitutes the text of paragraph (10)(B) after the period at 
        the end of the first sentence that follows subparagraph (B) 
        (relating to the definition of ``area'') and amending such 
        transferred sentence by inserting ``(2)'' after ``this 
        paragraph''; and
          (5) by striking paragraph (10) (as amended by the preceding 
        provisions this section).
  (b) Conforming Amendments.--Section 245 of the National Housing Act 
(12 U.S.C. 1715z-10) is amended--
          (1) in subsection (a), by striking ``, or if the mortgagor'' 
        and all that follows through ``case of veterans''; and
          (2) in subsection (b)(3), by striking ``, or, if the'' and 
        all that follows through ``for veterans,''.

SEC. 222. REDUCED DOWNPAYMENT REQUIREMENTS FOR LOANS FOR TEACHERS AND 
                    PUBLIC SAFETY OFFICERS.

  (a) In General.--Section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)), as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new paragraph:
          ``(10) Reduced downpayment requirements for teachers and 
        public safety officers.--
                  ``(A) In general.--Notwithstanding paragraph (2), in 
                the case of a mortgage described in subparagraph (B)--
                          ``(i) the mortgage shall involve a principal 
                        obligation in an amount that does not exceed 
                        the sum of 99 percent of the appraised value of 
                        the property and the total amount of initial 
                        service charges, appraisal, inspection, and 
                        other fees (as the Secretary shall approve) 
                        paid in connection with the mortgage;
                          ``(ii) no other provision of this subsection 
                        limiting the principal obligation of the 
                        mortgage based upon a percentage of the 
                        appraised value of the property subject to the 
                        mortgage shall apply; and
                          ``(iii) the matter in paragraph (9) that 
                        precedes the first proviso shall not apply and 
                        the mortgage shall be executed by a mortgagor 
                        who shall have paid on account of the property 
                        at least 1 percent of the cost of acquisition 
                        (as determined by the Secretary) in cash or its 
                        equivalent.
                  ``(B) Mortgages covered.--A mortgage described in 
                this subparagraph is a mortgage--
                          ``(i) under which the mortgagor is an 
                        individual who--
                                  ``(I) is (aa) a teacher, or (bb) a 
                                public safety officer; and
                                  ``(II) has not, during the 12-month 
                                period ending upon the insurance of the 
                                mortgage, had any present ownership 
                                interest in a principal residence 
                                located in the jurisdiction described 
                                in clause (ii); and
                          ``(ii) made for a property that is located 
                        within the jurisdiction of--
                                  ``(I) in the case of a mortgage of a 
                                mortgagor described in clause 
                                (i)(I)(aa), the local educational 
                                agency for the school in which the 
                                mortgagor is employed (or, in the case 
                                of a mortgagor employed in a private 
                                school, the local educational agency 
                                having jurisdiction for the area in 
                                which the private school is located); 
                                or
                                  ``(II) in the case of a mortgage of a 
                                mortgagor described in clause 
                                (i)(I)(bb), the jurisdiction served by 
                                the public law enforcement agency, 
                                firefighting agency, or rescue or 
                                ambulance agency that employs the 
                                mortgagor.
                  ``(C) Program integrity.--Notwithstanding any other 
                provision of this paragraph and section 203(c)(3), the 
                Secretary may suspend the applicability of this 
                paragraph and such section for such period as the 
                Secretary considers appropriate if the Secretary 
                determines such suspension is necessary because of 
                fraud or other issues regarding program integrity.''.
  (b) Deferral and Reduction of Up-Front Premium.--Section 203(c) of 
the National Housing Act (12 U.S.C. 1709(c)) is amended--
          (1) in paragraph (2), in the matter preceding subparagraph 
        (A), by striking ``Notwithstanding'' and inserting ``Except as 
        provided in paragraph (3) and notwithstanding''; and
          (2) by adding at the end the following new paragraph:
  ``(3) Deferral and Reduction of Up-Front Premium.--In the case of any 
mortgage described in subsection (b)(10)(B):
          ``(A) Paragraph (2)(A) of this subsection (relating to 
        collection of up-front premium payments) shall not apply.
          ``(B) If, at any time during the 5-year period beginning on 
        the date of the insurance of the mortgage, the mortgagor ceases 
        to be a teacher or public safety officer (as such terms are 
        defined in section 201) or pays the principal obligation of the 
        mortgage in full, the Secretary shall at such time collect a 
        single premium payment in an amount equal to the amount of the 
        single premium payment that, but for this paragraph, would have 
        been required under paragraph (2)(A) of this subsection with 
        respect to the mortgage, as reduced by 20 percent of such 
        amount for each successive 12-month period completed during 
        such 5-year period before such cessation or prepayment 
        occurs.''.
  (c) Definitions.--Section 201 of the National Housing Act (12 U.S.C. 
1707) is amended--
          (1) in subsection (a), by redesignating clauses (1) and (2) 
        as clauses (A) and (B), respectively;
          (2) by redesignating subsections (a) through (f) as 
        paragraphs (1) through (6), respectively;
          (3) by realigning each paragraph 2 ems from the left margin; 
        and
          (4) by adding at the end the following new paragraphs:
          ``(7) The term `public safety officer' has the meaning given 
        such term in section 1204 of the Omnibus Crime Control and Safe 
        Streets Act of 1968 (42 U.S.C. 3796b).
          ``(8) The term `teacher' means an individual who is employed 
        on a part- or full-time basis as a teacher, teacher assistant, 
        or administrator in a public or private school that provides 
        elementary or secondary education, as determined under State 
        law, except that elementary education shall include pre-
        Kindergarten education, and except that secondary education 
        shall not include any education beyond grade 12.
          ``(9) The term `local educational agency' has the meaning 
        given such term in section 14101 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 8801).''.
  (d) Regulations.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement the amendments made by this section.

SEC. 223. COMMUNITY PARTNERS NEXT DOOR PROGRAM.

  (a) Discount and Downpayment Assistance for Teachers and Public 
Safety Officers.--Section 204(h) of the National Housing Act (12 U.S.C. 
1710(h)) is amended--
          (1) by redesignating paragraphs (7) through (10) as 
        paragraphs (8) through (11), respectively; and
          (2) by inserting after paragraph (6) the following new 
        paragraph:
          ``(7) 50 percent discount for teachers and public safety 
        officers purchasing properties that are eligible assets.--
                  ``(A) Discount.--A property that is an eligible asset 
                and is sold, during fiscal years 2002 through 2006, to 
                a teacher or public safety officer for use in 
                accordance with subparagraph (B) shall be sold at a 
                price that is equal to 50 percent of the appraised 
                value of the eligible property (as determined in 
                accordance with paragraph (6)(B)). In the case of a 
                property eligible for both a discount under this 
                paragraph and a discount under paragraph (6), the 
                discount under paragraph (6) shall not apply.
                  ``(B) Primary residence.--An eligible property sold 
                pursuant to a discount under this paragraph shall be 
                used, for not less than the 3-year period beginning 
                upon such sale, as the primary residence of a teacher 
                or public safety officer.
                  ``(C) Sale methods.--The Secretary may sell an 
                eligible property pursuant to a discount under this 
                paragraph--
                          ``(i) to a unit of general local government 
                        or nonprofit organization (pursuant to 
                        paragraph (4) or otherwise), for resale or 
                        transfer to a teacher or public safety officer; 
                        or
                          ``(ii) directly to a purchaser who is a 
                        teacher or public safety officer.
                  ``(D) Resale.--In the case of any purchase by a unit 
                of general local government or nonprofit organization 
                of an eligible property sold at a discounted price 
                under this paragraph, the sale agreement under 
                paragraph (8) shall--
                          ``(i) require the purchasing unit of general 
                        local government or nonprofit organization to 
                        provide the full benefit of the discount to the 
                        teacher or public safety officer obtaining the 
                        property; and
                          ``(ii) in the case of a purchase involving 
                        multiple eligible assets, any of which is such 
                        an eligible property, designate the specific 
                        eligible property or properties to be subject 
                        to the requirements of subparagraph (B).
                  ``(E) Mortgage downpayment assistance.--If a teacher 
                or public safety officer purchases an eligible property 
                pursuant to a discounted sale price under this 
                paragraph and finances such purchase through a mortgage 
                insured under this title, notwithstanding any provision 
                of section 203 the downpayment on such mortgage shall 
                be $100.
                  ``(F) Prevention of undue profit.--The Secretary 
                shall issue regulations to prevent undue profit from 
                the resale of eligible properties in violation of the 
                requirement under subparagraph (B).
                  ``(G) Definitions.--For the purposes of this 
                paragraph, the following definitions shall apply:
                          ``(i) The term `eligible property' means an 
                        eligible asset described in paragraph (2)(A) of 
                        this subsection.
                          ``(ii) The terms `teacher' and `public safety 
                        officer' have the meanings given such terms in 
                        section 201.
                  ``(H) Program integrity.--Notwithstanding any other 
                provision of this paragraph, the Secretary may suspend 
                the applicability of this paragraph for such period as 
                the Secretary considers appropriate if the Secretary 
                determines such suspension is necessary because of 
                fraud or other issues regarding program integrity.''.
  (b) Conforming Amendments.--Section 204(h) of the National Housing 
Act (12 U.S.C. 1710(h)) is amended--
          (1) in paragraph (4)(B)(ii), by striking ``paragraph (7)'' 
        and inserting ``paragraph (8)'';
          (2) in paragraph (5)(B)(i), by striking ``paragraph (7)'' and 
        inserting ``paragraph (8)''; and
          (3) in paragraph (6)(A), by striking ``paragraph (8)'' and 
        inserting ``paragraph (9)''.
  (c) Regulations.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement the amendments made by this section.

SEC. 224. PUBLIC SAFETY OFFICER HOME OWNERSHIP IN AT-RISK AREAS.

  (a) Program Authority.--The Secretary of Housing and Urban 
Development shall carry out a pilot program in accordance with this 
section to assist Federal, State, and local public safety officers 
purchasing homes in locally-designated at-risk areas.
  (b) Eligibility.--To be eligible for assistance under this section, a 
public safety officer shall agree, in writing, to use the residence 
purchased with such assistance as the primary residence of the public 
safety officer for not less than 3 years after the date of purchase.
  (c) Mortgage Assistance.--If a public safety officer purchases a home 
in locally-designated at-risk area and finances such purchase through a 
mortgage insured under title II of the National Housing Act (12 U.S.C. 
1707 et seq.), notwithstanding any provision of section 203 or any 
other provision of the National Housing Act, the following shall apply:
          (1) Downpayment.--
                  (A) In general.--There shall be no downpayment 
                required if the purchase price of the property is not 
                more than the reasonable value of the property, as 
                determined by the Secretary.
                  (B) Purchase price exceeds value.--If the purchase 
                price of the property exceeds the reasonable value of 
                the property, as determined by the Secretary, the 
                required downpayment shall be the difference between 
                such reasonable value and the purchase price.
          (2) Closing costs.--The closing costs and origination fee for 
        such mortgage may be included in the loan amount.
          (3) Insurance premium payment.--There shall be one insurance 
        premium payment due on the mortgage. Such insurance premium 
        payment--
                  (A) shall be equal to 1 percent of the loan amount;
                  (B) shall be due and considered earned by the 
                Secretary at the time of the loan closing; and
                  (C) may be included in the loan amount and paid from 
                the loan proceeds.
  (d) Local Designation of At-Risk Areas.--
          (1) Criteria.--Any unit of local government may request that 
        the Secretary designate any area within the jurisdiction of 
        that unit of local government as a locally-designated at-risk 
        area for purposes of this section if the proposed area--
                  (A) has a crime rate that is significantly higher 
                than the crime rate of the non-designated area that is 
                within the jurisdiction of the unit of local 
                government; and
                  (B) has a population that is not more than 25 percent 
                of the total population of area within the jurisdiction 
                of the unit of local government.
          (2) Deadline for consideration of request.--Not later than 60 
        days after receiving a request under paragraph (1), the 
        Secretary shall approve or disapprove the request.
  (e) Public Safety Officer.--For purposes of this section, the term 
``public safety officer'' has the meaning given such term in section 
201 of the National Housing Act (12 U.S.C. 1707) (as amended by section 
222(c) of this Act).
  (f) Program Integrity.--Notwithstanding any other provision of this 
section, the Secretary may suspend the applicability of this section 
for such period as the Secretary considers appropriate if the Secretary 
determines such suspension is necessary because of fraud or other 
issues regarding program integrity.
  (g) Regulations.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement the provisions of this section.
  (h) Sunset.--The Secretary shall not approve any application for 
assistance under this section that is received by the Secretary after 
the expiration of the 3-year period beginning on the date that the 
Secretary first makes available assistance under the pilot program 
under this section.

SEC. 225. HYBRID ADJUSTABLE RATE MORTGAGES.

  Section 251(d)(1)(C) of the National Housing Act (12 U.S.C. 1715z-
16(d)(1)(C)) is amended by striking ``five or fewer years'' and 
inserting ``three or fewer years''.

SEC. 226. UNIFORM NATIONAL LOAN LIMIT FOR HOME EQUITY CONVERSION 
                    MORTGAGES.

  Section 255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) is 
amended by striking ``1-family residences in the area in which the 
dwelling subject to the mortgage under this section is located'' and 
inserting ``a 1-family residence''.

SEC. 227. PROHIBITION OF INVESTOR AND NONPROFIT OWNERS UNDER 
                    REHABILITATION LOAN PROGRAM.

  Section 203(g)(2) of the National Housing Act (12 U.S.C. 1709(g)(2)) 
is amended--
          (1) by striking subparagraph (E);
          (2) in subparagraph (D), by inserting ``or'' after the 
        semicolon; and
          (3) by redesignating subparagraph (F) as subparagraph (E).

SEC. 228. REHABILITATION LOAN ADVANCES.

  Section 203(k)(3) of the National Housing Act (12 U.S.C. 1709(k)(3)) 
is amended--
          (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively; and
          (2) by inserting after subparagraph (B) the following new 
        subparagraph:
          ``(C) involve a loan agreement containing such terms and 
        conditions as the Secretary shall provide, including terms and 
        conditions that provide that the mortgagee shall be responsible 
        for--
                  ``(i) choosing an inspector or consultant who shall--
                          ``(I) meet the standards as the Secretary 
                        shall establish; and
                          ``(II) be an agent of the mortgagee; and
                  ``(ii) approving advances under the loan;''.

SEC. 229. NONPROFIT PURCHASERS UNDER PROPERTY DISPOSITION.

  (a) In General.--Section 204(g) of the National Housing Act (12 
U.S.C. 1710(g)) is amended--
          (1) by inserting ``(1)'' after ``(g)''; and
          (2) by adding at the end the following new paragraph:
  ``(2) The Secretary shall require, as a condition of eligibility of 
any nonprofit organization for participation in any program of the 
Secretary for disposition of 1- to 4-family properties acquired by the 
Secretary pursuant to this Act, the Secretary shall require that such 
organization--
          ``(A) has nonprofit status as demonstrated by approval under 
        section 501(c)(3) of the Internal Revenue Code of 1986 (26 
        U.S.C. 501(c)(3)) or demonstrates that an application for such 
        status is currently pending approval; and
          ``(B) provide the Secretary with a copy of the application 
        for such status;
          ``(C) certify, on an annual basis, that the organization has 
        been apprised of the applicable rules and guidelines of the 
        Department of Housing and Urban Development and understands 
        such rules and guidelines; and
          ``(D) comply with such other requirements as the Secretary 
        may establish.''.
  (b) Assets in Revitalization Areas.--Paragraph (9)(D) of section 
204(h) of the National Housing Act (12 U.S.C. 1710(h)(9)(D)), as so 
redesignated by the preceding provisions of this Act, is amended--
          (1) by striking clause (ii) and inserting the following new 
        clause:
                          ``(ii)(I) has nonprofit status as 
                        demonstrated by approval under section 
                        501(c)(3) of the Internal Revenue Code of 1986 
                        (26 U.S.C. 501(c)(3)) or demonstrates that an 
                        application for such status is currently 
                        pending approval; and
                          ``(II) provides the Secretary with a copy of 
                        the application for such status;'';
          (2) in clause (iii), by striking the period at the end and 
        inserting ``; and''; and
          (3) by adding at the end the following new clause:
                          ``(iv) certifies, on an annual basis, that 
                        the organization has been apprised of the 
                        applicable rules and guidelines of the 
                        Department of Housing and Urban Development and 
                        understands such rules and guidelines.''.

SEC. 230. EXTENSION OF HOLDING PERIOD.

  (a) In General.--Section 912(1) of the Housing and Urban Development 
Act of 1970 (12 U.S.C. 1709-2(1)) is amended by striking ``one year'' 
and inserting ``18 months''.
  (b) Applicability.--The amendment made by subsection (a) shall apply 
only to defaults described in section 912(1) of the Housing and Urban 
Development Act of 1970 that occur after the date of the enactment of 
this Act.

SEC. 231. PILOT PROGRAM FOR MANDATORY FIRST-TIME HOMEBUYER COUNSELING 
                    FOR PROPERTIES IN HIGH FORECLOSURE NEIGHBORHOODS.

  (a) In General.--The Secretary shall carry out a pilot program under 
this section to determine whether, and the extent to which, requiring 
completion of a program (that is approved by the Secretary) of 
counseling with respect to the responsibilities and financial 
management involved in homeownership by any first-time homebuyers 
purchasing properties located in high foreclosure neighborhoods with 
mortgages insured under section 203 of the National Housing Act (12 
U.S.C. 1709) will help to prevent defaults and foreclosures on such 
mortgages.
  (b) Requirement.--Notwithstanding any provision of paragraph (2) of 
section 203(b) of the National Housing Act (12 U.S.C. 1709(b)(2)), 
under the pilot program, during the 1-year period beginning not later 
than 6 months after the date of the enactment of this Act, as selected 
by the Secretary, the Secretary may not insure, or enter into a 
commitment to insure, a mortgage under such section 203 that is 
executed by a first-time homebuyer for a property that is located in 
the pilot program area unless the mortgagor has completed a program of 
counseling with respect to the responsibilities and financial 
management involved in homeownership that is approved by the Secretary.
  (c) Pilot Program Area.--The Secretary shall select a pilot program 
area for purposes of this section, which shall be a single limited 
area, within the jurisdiction of a single unit of general local 
government, for which the rate of foreclosure on residences subject to 
mortgages insured under such section 203 exceeds the lesser of--
          (1) 150 percent of the national early default claim rate for 
        such residences; and
          (2) the national early default claim rate for such residences 
        located within the area served by a field office of the 
        Department of Housing and Urban Development in whose area the 
        pilot program area is located.
  (d) Report.--Not later than 30 months after the date of the enactment 
of this Act, the Secretary of Housing and Urban Development shall 
submit a report describing the effect of the requirement under 
subsection (b) on mortgage defaults and foreclosures and any other 
effects of such requirement, and making any recommendations regarding 
implementation of the requirement on a nationwide basis.

SEC. 232. DISPOSITION OF ASSETS IN REVITALIZATION AREAS.

  The Secretary of Housing and Urban Development shall continue to 
administer the Disposition of Assets in Revitalization Areas program as 
provided in section 602 of Public Law 105-276 and the Secretary shall 
renew all contracts and enter into new contracts with eligible 
participants in a manner consistent with the requirements of such 
section.

    TITLE III--SUPPORTIVE HOUSING FOR ELDERLY AND DISABLED FAMILIES

SEC. 301. AUTHORIZATION OF APPROPRIATIONS FOR GRANTS FOR REPAIRS TO 
                    FEDERALLY ASSISTED HOUSING FOR THE ELDERLY.

  Section 202b of the Housing Act of 1959 (12 U.S.C. 1701q-2) is 
amended by striking subsection (h) and inserting the following new 
subsection:
  ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated for grants for capital repair activities under subsection 
(a)(1) and for grants for conversion activities under subsection (a)(2) 
such sums as may be necessary for each of fiscal years 2003 and 
2004.''.

SEC. 302. SERVICE COORDINATORS FOR SUPPORTIVE HOUSING FOR PERSONS WITH 
                    DISABILITIES.

  Section 683(2) of the Housing and Community Development Act of 1992 
(42 U.S.C. 13641(2)) is amended--
          (1) in subparagraph (F), by striking ``and'' at the end;
          (2) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
          (3) by adding at the end the following new subparagraph:
                  ``(H) housing that is assisted under section 811 of 
                the Cranston-Gonzalez National Affordable Housing Act 
                (42 U.S.C. 8013).''.

SEC. 303. DEMONSTRATION PROGRAM FOR ELDERLY HOUSING FOR 
                    INTERGENERATIONAL FAMILIES.

  (a) In General.--The Secretary of Housing and Urban Development shall 
carry out a demonstration program to determine the feasibility of 
providing intergenerational dwelling units for intergenerational 
families in connection with the supportive housing program under 
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q).
  (b) Intergenerational Dwelling Units.--Under the demonstration 
program, the Secretary shall provide assistance under this section to 
private nonprofit organizations (as such term is defined in section 
202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)) for use only for 
expanding the supply of intergenerational dwelling units, which units 
shall be provided--
          (1) by designating and retrofitting, for use as 
        intergenerational dwelling units, existing dwelling units that 
        are located within a project assisted under such section 202;
          (2) through development of buildings or projects comprised 
        solely of intergenerational dwelling units; or
          (3) through the development of an annex or addition to such 
        an existing project assisted under such section 202, which 
        contains intergenerational dwelling units, including through 
        the development of elder cottage housing opportunity units that 
        are small, freestanding, barrier-free, energy-efficient, 
        removable dwelling units located adjacent to a larger project 
        or dwelling.
  (c) Program Terms.--Assistance provided pursuant to this section 
shall be subject to the provisions of section 202 of the Housing Act of 
1959 (12 U.S.C. 1701q), except that--
          (1) notwithstanding subsection (d)(1) of such section or any 
        provision of such section restricting occupancy to elderly 
        persons, any intergenerational dwelling unit assisted under the 
        demonstration program may be occupied as provided in subsection 
        (e)(2) of this section;
          (2) subsections (e) and (f) of such section 202 (relating to 
        applications and selection criteria) shall not apply;
          (3) in addition to the requirements under subsection (g) of 
        such section 202, the Secretary of Housing and Urban 
        Development shall ensure that occupants of dwelling units 
        assisted under the demonstration program are provided a range 
        of services tailored to the needs of elderly persons, children, 
        and intergenerational families and shall coordinate with the 
        heads of other Federal agencies as may be appropriate to ensure 
        the provision of such services; and
          (4) the Secretary may waive or alter any other provision of 
        such section 202 necessary to provide for assistance under the 
        demonstration program under this section.
  (d) Selection.--The Secretary of Housing and Urban Development shall 
provide for private nonprofit organizations to submit applications for 
assistance under this section and, during the period consisting of 
fiscal years 2003 through 2006 shall, to the extent amounts are 
available pursuant to subsection (g), select not less than 2 and not 
more than 4 projects assisted under section 202 of the Housing Act of 
1959 for such assistance based on the ability of the applicant to 
develop and operate intergenerational dwelling units and national 
geographical diversity among projects funded.
  (e) Definitions.--For purposes of this section:
          (1) Elderly person.--The term ``elderly person'' has the 
        meaning given such term in section 202(k) of the Housing Act of 
        1959 (12 U.S.C. 1701q(k)).
          (2) Intergenerational dwelling unit.--The term 
        ``intergenerational dwelling unit'' means a qualified dwelling 
        unit (as such term is defined in section 8(x)(4) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437f(x)(4))) that is 
        reserved for occupancy only by an intergenerational family.
          (3) Intergenerational family.--The term ``intergenerational 
        family'' means a covered family (as such term is defined in 
        section 8(x)(4) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(x)(4))) that has a head of household who is an 
        elderly person.
  (f) Report.--Not later than 36 months after the date of the enactment 
of this Act, the Secretary of Housing and Urban Development shall 
submit a report to the Congress describing the demonstration program 
under this section and analyzing the effectiveness of the program.
  (g) Funding.--Of any amounts made available for assistance under 
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for each of 
fiscal years 2003 through 2006, the Secretary of Housing and Urban 
Development shall reserve amounts in such fiscal years as may be 
necessary to fund the demonstration projects selected under subsection 
(d). Such amounts shall be available for use only for providing 
assistance under this section.

SEC. 304. TREATMENT OF PROJECTS SUBJECT TO FORECLOSURE.

  (a) In General.--In the case of any project assisted with a loan 
under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), as in 
effect before the enactment of the Cranston-Gonzalez National 
Affordable Housing Act, notwithstanding any foreclosure on the loan, 
any use restrictions applicable to the project regarding occupancy by 
elderly or handicapped families or the maximum income of families 
occupying dwelling units in the project shall continue to apply after 
such foreclosure until the expiration of the original term of such 
loan.
  (b) Income Limits.--Notwithstanding subsection (a), in the case of a 
project assisted with a loan described in such subsection, after 
foreclosure on such loan any maximum income limit for a families 
occupying dwelling units in the project may be increased to not more 
than 80 percent of the median income for the area if such action is 
necessary to ensure the financial soundness of the project.
  (c) Transfer to Qualified Non-Profit Organizations.--In the case of 
the sale or other disposition of a project assisted with a loan 
described in subsection (a) pursuant to foreclosure on such loan, the 
Secretary of Housing and Urban Development shall provide a reasonable 
period during which only qualified nonprofit organizations (as such 
term is defined by the Secretary) shall have a right of first refusal 
to purchase the property.
  (d) Regulations.--The Secretary of Housing and Urban Development 
shall issue any regulations necessary to carry out this section.

         TITLE IV--SECTION 8 RENTAL HOUSING ASSISTANCE PROGRAM

SEC. 401. HOUSING VOUCHER DEMONSTRATION.

  (a) In General.--For fiscal years 2003 and 2004, there is authorized 
to be appropriated to provide incremental assistance for project-based 
vouchers under section 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f) the amount necessary to provide a total of 5,000 such 
incremental vouchers. Vouchers provided pursuant to this section shall 
be used exclusively for extremely low-income families in connection 
with dwelling units in newly constructed or substantially rehabilitated 
housing.
  (b) Extremely Low-Income Families.--For purposes of this section, the 
term ``extremely low-income families'' means families (as such term is 
defined in section 3(b) of the United States Housing Act of 1937 (42 
U.S.C. 1437a(b))) whose incomes do not exceed the higher of--
          (1) 30 percent of the area median income, as determined by 
        the Secretary with adjustments for smaller and larger families 
        and for unusually high or low family incomes; or
          (2) 30 percent of the national non-metropolitan median 
        income.

SEC. 402. FLEXIBILITY TO ASSIST HARD-TO-HOUSE FAMILIES.

  (a) In General.--Section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)) is amended by adding at the end the following 
new paragraph:
          ``(19) Flexibility to assist hard-to-house families.--In any 
        program year, a public housing agency that is not designated as 
        troubled pursuant to the section 8 management assessment 
        program, or under such other program as may be used by the 
        Secretary to evaluate performance of public housing agencies in 
        administering rental assistance under this section, may use up 
        to 2 percent of any amounts allocated to the agency for such 
        year for purposes that directly support the agency's housing 
        choice voucher program, including housing counseling, 
        downpayment assistance under subsection (y), rental security 
        deposits for families receiving voucher assistance, and other 
        activities that directly assist eligible families in gaining 
        and maintaining occupancy in suitable dwelling units.''.
  (b) Applicability.--The amendment made by subsection (a) shall apply 
only with respect to amounts appropriated for fiscal year 2003 or any 
fiscal year thereafter.

SEC. 403. CLARIFICATION ON PROHIBITION OF RE-SCREENING OF TENANTS.

  Section 8(t)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(t)(1)) is amended--
          (1) in subparagraph (C), by striking ``and'' at the end;
          (2) in subparagraph (D), by striking the period and inserting 
        ``; and''; and
          (3) by adding at the end the following new subparagraph:
                  ``(E) a family's eligibility to receive such 
                assistance shall be determined pursuant to the 
                provisions of law authorizing or requiring the 
                provision of enhanced voucher assistance pursuant to 
                the eligibility event that affected such family and a 
                family may not be required, as a condition of receiving 
                such assistance, to qualify under the selection 
                standards of a public housing agency for voucher 
                assistance under this section.''.

SEC. 404. PHA ADMINISTRATIVE FEES.

  Section 8(q) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(q)) is amended--
          (1) by redesignating paragraph (4) as paragraph (5); and
          (2) by inserting after paragraph (3) the following new 
        paragraph:
          ``(4) Performance incentive.--For fiscal year 2003 and fiscal 
        years thereafter, the Secretary may pay an additional fee to 
        any public housing agency that succeeds in achieving high or 
        substantially improved performance on specified program 
        requirements or program goals, as established under the 
        management assessment program for the rental assistance program 
        under this section, or any successor assessment program for 
        such assistance, or by regulation issued by the Secretary after 
        notice and opportunity for public comment pursuant to the 
        provisions of section 553 of title 5, United States Code 
        (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such 
        section). The Secretary shall establish limitations on the 
        total amount of any such additional fees paid to agencies for a 
        fiscal year and on the amount of any such fee paid to any 
        single agency for a fiscal year.''.

SEC. 405. ENSURING ABILITY TO USE ENHANCED VOUCHERS.

  Section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(t)) is amended--
          (1) by redesignating paragraph (4) as paragraph (6); and
          (2) by inserting after paragraph (3) the following new 
        paragraph:
          ``(5) Right to use.--The owner of a multifamily housing 
        project for which an eligibility event (as such term is defined 
        in paragraph (2)) has occurred may not refuse--
                  ``(A) to accept enhanced voucher assistance for lease 
                of a dwelling unit in the same project on behalf of a 
                family who was residing in the project upon the 
                occurrence of such eligibility event; or
                  ``(B) to enter into a housing assistance payments 
                contract for such a unit.''.

SEC. 406. TREATMENT OF OVERHOUSED ASSISTED FAMILIES.

  Paragraph (6) of section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(6)) is amended by adding at the end the 
following new subparagraph:
                  ``(D) Residency in inappropriately sized units.--
                          ``(i) In general.--If a public housing agency 
                        determines that a family assisted under this 
                        subsection is residing in a dwelling unit that, 
                        because of a reduction in family size after 
                        such assistance was initially provided for such 
                        family, has more bedrooms than is appropriate 
                        for a family of such size, the agency may not 
                        terminate the assistance for the family or 
                        require the family to move to another dwelling 
                        unit unless--
                                  ``(I) the agency provides the family 
                                with a dwelling unit that is located in 
                                the same building or project as the 
                                inappropriately sized dwelling unit and 
                                is available for occupancy; or
                                  ``(II) in the case of a family 
                                residing in a dwelling unit in a 
                                building or project that does not 
                                contain any available dwelling unit 
                                having a number of bedrooms that is 
                                appropriate for size of such family, 
                                the agency provides the family with a 
                                dwelling unit that is located within 
                                the same neighborhood as the building 
                                containing the inappropriately sized 
                                dwelling unit.
                          ``(ii) Determination of neighborhood.--For 
                        purposes of clause (i)(II), the term 
                        `neighborhood' means the immediate geographic 
                        area in which a building is located, which--
                                  ``(I) is characterized by all 
                                locations within the area having a 
                                similar proximity to major roadways, 
                                mass transit facilities, and other 
                                means of transportation, schools, child 
                                care facilities, workplace centers, and 
                                grocery stores and other retail and 
                                commercial facilities; and
                                  ``(II) shall be determined by the 
                                public housing agency involved, in 
                                consultation with the appropriate 
                                resident advisory board established 
                                pursuant to section 5A(e).
                          ``(iii) Treatment of students.--For purposes 
                        of clause (i), the absence of a child or adult 
                        from a dwelling because of temporary residence 
                        in another location for the purpose of 
                        attending school on a full- or part-time basis 
                        shall not be considered in determining family 
                        size.''.

SEC. 407. EXTENSION OF MANUFACTURED HOUSING DEMONSTRATION PROGRAM.

  Section 557 of the Quality Housing and Work Responsibility Act of 
1998 (Public Law 105-276; 112 Stat. 2613) is amended--
          (1) in subsection (a), by striking ``1999, 2000, and 2001'' 
        and inserting ``2002, 2003, and 2004''; and
          (2) in subsection (c)--
                  (A) by striking ``Report'' and inserting ``Reports'';
                  (B) by striking ``a report'' and inserting ``an 
                interim report'';
                  (C) by striking ``and evaluating'' and inserting 
                ``the implementation and operation of''; and
                  (D) by adding at the end the following new sentence: 
                ``Not later than March 31, 2005, the Secretary shall 
                submit a report to the Congress describing and 
                evaluating the demonstration program under this 
                section.''.

SEC. 408. EXTENSION OF PROJECT-BASED SECTION 8 CONTRACT RENEWALS.

  (a) Renewal of Expiring Project-Based Section 8 Contracts.--Section 
524 of the Multifamily Assisted Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note) is amended--
          (1) in subsection (a)(4)(A)(iv)--
                  (A) in subclause (I), by inserting ``or'' after the 
                semicolon;
                  (B) by striking subclause (II); and
                  (C) by redesignating subclause (III) as subclause 
                (II); and
          (2) by striking paragraph (3) of subsection (b).
  (b) Adjustments for Covered Projects.--
          (1) Rent determination at initial renewal after enactment.--
        Upon the first request for renewal of project-based assistance 
        pursuant to section 524 after the date of enactment of this Act 
        by an owner of a covered housing project--
                  (A) the rent levels at which assistance will be 
                provided pursuant to such renewal will be determined as 
                if such renewal were the initial renewal of a contract 
                for assistance under section 524, as amended by 
                subsection (a) of this section; and
                  (B) solely for purposes of determining the rent 
                levels at which assistance will be provided pursuant to 
                such first renewal after the date of enactment of this 
                Act, in the case of a project for which contract rents 
                were reduced on a prior renewal of an expiring contract 
                pursuant to subsection (b)(3) of section 524, as in 
                effect on the day before the date of enactment of this 
                Act, the contract rent levels in effect immediately 
                prior to such first renewal after the date of enactment 
                of this Act shall be considered to be the deemed rent 
                levels described in paragraph (3)(C).
          (2) Rent adjustments after initial renewal after enactment.--
        After the first renewal of a contract for assistance of a 
        covered project after the date of enactment of this Act in 
        accordance with paragraph (1) of this subsection, the Secretary 
        shall adjust rents in accordance with section 524(c).
          (3) Definitions.--In this subsection--
                  (A) references to ``section 524'' or any subdivision 
                thereof are references to section 524 of the 
                Multifamily Assisted Housing Reform and Affordability 
                Act of 1997 (42 U.S.C. 1437f note);
                  (B) the term ``covered housing project'' means a 
                project that receives project-based assistance under 
                section 8 of the United States Housing Act of 1937 (42 
                U.S.C. 1437f) which was renewed prior to the date of 
                enactment of this Act pursuant to subsection (b)(3) of 
                section 524, as in effect on the day before the date of 
                enactment of this Act;
                  (C) the term ``deemed rent levels'' means the 
                contract rent levels in effect immediately prior to the 
                first renewal of assistance pursuant to subsection 
                (b)(3) of section 524, as in effect on the day before 
                the date of enactment of this Act, upon which contract 
                rent levels were reduced, as adjusted by the applicable 
                operating cost adjustment factor established by the 
                Secretary at the date of such renewal and at the date 
                of any subsequent renewal pursuant to subsection (b)(3) 
                of section 524 occurring before the date of enactment 
                of this Act; and
                  (D) the term ``Secretary'' means the Secretary of 
                Housing and Urban Development.

SEC. 409. INSPECTION OF UNITS.

  Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(8)) is amended--
          (1) in subparagraph (A)--
                  (A) by striking ``(A) In general.--Except as provided 
                in paragraph (11),'' and inserting the following:
                  ``(A) General rule.--
                          ``(i) In general.--Except as provided in 
                        clause (ii) and paragraph (11),''; and
                  (B) by inserting at the end the following:
                          ``(ii) Exception.--A public housing agency 
                        may commence payments to an owner, if the 
                        public housing agency--
                                  ``(I) has conducted an inspection of 
                                the building, which includes an 
                                inspection of a reasonable number of 
                                units in the 6 months prior to the date 
                                on which payment is made to the owner, 
                                and that inspection and any subsequent 
                                unit inspections have not turned up 
                                major deficiencies;
                                  ``(II) conducts an inspection of the 
                                unit for which the payment is being 
                                made not later than 30 days after the 
                                date for which payment is made to the 
                                owner; and
                                  ``(III) has an agreement with the 
                                owner to correct any deficiencies and 
                                make any repairs in the unit not later 
                                than 30 days after the date on which 
                                the inspection was made under subclause 
                                (II).''; and
          (2) in subparagraph (D)--
                  (A) by striking ``(D) Annual inspections.--Each'' and 
                inserting the following:
                  ``(D) Annual inspections.--
                          ``(i) In general.--Except as provided in 
                        clause (ii), each''; and
                  (B) by adding at the end the following:
                          ``(ii) Exception.--If a public housing agency 
                        has a large jurisdiction and is conducting 
                        inspections on a geographical basis, the public 
                        housing agency may comply with the annual 
                        inspection requirement by inspecting the unit 
                        within 9 to 15 months of the previous 
                        inspection.''.

SEC. 410. ESCROW OF TENANT RENT IN CASES OF OWNER FAILURE TO MAINTAIN 
                    UNIT.

  Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(8)) is amended by adding at the end the following new 
subparagraph:
                  ``(F) Escrow of tenant rent in cases of owner failure 
                to maintain unit.--Each housing assistance payment 
                contract under this subsection shall provide as 
                follows:
                          ``(i) Requirement.--In any case in which a 
                        public housing agency suspends assistance 
                        payments under this subsection with respect to 
                        a dwelling unit because of a failure on the 
                        part of the owner of the unit to maintain the 
                        unit in compliance with the housing quality 
                        standards established pursuant to this 
                        paragraph, the agency shall--
                                  ``(I) require the tenant to suspend 
                                payment to the owner of the tenant's 
                                monthly contribution toward rent and 
                                require the tenant to pay such amount 
                                into an escrow account established by 
                                the agency; and
                                  ``(II) notify the tenant and the 
                                owner of the failure to maintain the 
                                unit in compliance with such housing 
                                quality standards and of the actions 
                                required under this subparagraph.
                          ``(ii) Correction of noncompliance.--If the 
                        owner corrects the noncompliance within the 
                        period of time established by the agency for 
                        such purpose, the public housing agency shall 
                        release to the owner any tenant payments toward 
                        rent deposited in the escrow account.
                          ``(iii) Failure to correct noncompliance.--If 
                        the owner fails to correct the noncompliance 
                        within the period of time established by the 
                        agency and the tenant moves from the dwelling 
                        unit because of such noncompliance, the public 
                        housing agency shall make the any tenant 
                        payments toward rent that are deposited in the 
                        escrow account available on behalf of the 
                        tenant upon such move for costs of the move and 
                        for rental of a new dwelling unit.''.

SEC. 411. PROJECT-BASED VOUCHERS MODIFICATIONS.

  (a) In General.--Section 8(o)(13) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(13)) is amended--
          (1) in subparagraph (C)(ii), by inserting before the period 
        at the end the following: ``, revitalizing a low-income 
        community, or preventing the displacement of extremely low-
        income families'';
          (2) in subparagraph (D)(ii), by striking ``apply in the case 
        of'' and all that follows through the period and inserting the 
        following: ``apply--
                                  ``(I) in the case of assistance under 
                                a contract for housing consisting of 
                                single family properties (buildings 
                                with 1 to 4 units);
                                  ``(II) for dwelling units that are 
                                specifically made available for 
                                households comprised of elderly 
                                families or disabled families; or
                                  ``(III) outside of a qualified census 
                                tract, for buildings with 5 to 25 units 
                                or with dwelling units that are 
                                specifically made available for 
                                families receiving supportive services.
                        For purposes of this clause, the term 
                        `qualified census tract' has the same meaning 
                        given that term in section 42(d) of the 
                        Internal Revenue Code of 1986 (26 U.S.C. 
                        42(d)). The Secretary may waive the limitations 
                        of this clause, consistent with the obligation 
                        to affirmatively further fair housing 
                        practices.'';
          (3) in subparagraph (F), by striking ``10 years'' and 
        inserting ``15 years'';
          (4) in subparagraph (J)--
                  (A) in the first sentence, by inserting before the 
                period the following: ``, or from 1 or more separate 
                project-based waiting lists established and maintained 
                in accordance with subparagraph (K). A public housing 
                agency may permit an owner to select families from a 
                waiting list for units assisted under this paragraph 
                maintained by the owner in accordance with subparagraph 
                (L). Regardless of whether a waiting list is maintained 
                under this subparagraph or under subparagraph (K) or 
                (L), families shall initially be selected from the 
                public housing agency's waiting list for assistance 
                under this subsection for at least \1/2\ of the vacant 
                units in a building made available with assistance 
                under this paragraph, unless the units are restricted, 
                under the tenant selection preferences adopted under 
                the annual plan submitted by the public housing agency 
                to the Secretary pursuant to section 5A(b), to 
                occupancy by persons who are receiving intensive 
                publicly funded services and who have a disability, as 
                defined in section 3 of this Act or section 422 of the 
                McKinney-Vento Homeless Assistance Act'';
                  (B) in the fifth sentence, by inserting before the 
                period the following: ``, unless the owner maintains a 
                waiting list under subparagraph (L)''; and
                  (C) in the last sentence, by striking ``and may 
                maintain'' and all that follows through ``on the 
                separate list'';
          (5) by redesignating subparagraph (K) as subparagraph (M); 
        and
          (6) by inserting after subparagraph (J) the following:
                  ``(K) Public housing agency waiting list.--
                          ``(i) In general.--A public housing agency 
                        may select families for assistance--
                                  ``(I) under subparagraph (J);
                                  ``(II) under this subparagraph for 
                                each property that receives assistance 
                                under this paragraph; or
                                  ``(III) under this subparagraph for 
                                similar properties that receive 
                                assistance under this paragraph.
                          ``(ii) Requirements.--A public housing agency 
                        that maintains a separate waiting list under 
                        this subparagraph--
                                  ``(I) shall provide notice of the 
                                opening of the waiting list in the same 
                                manner required by the Secretary for 
                                the provision of notice of the opening 
                                of the waiting list for tenant-based 
                                assistance under this subsection, 
                                except that this subclause shall not 
                                apply to units assisted under this 
                                paragraph that are restricted, under 
                                tenant selection preferences adopted 
                                under the annual plan submitted by the 
                                public housing agency to the Secretary 
                                pursuant to section 5A(b) to occupancy 
                                by persons who are receiving intensive 
                                publicly funded services and who have a 
                                disability, as defined in section 3 of 
                                this Act or section 422 of the 
                                McKinney-Vento Homeless Assistance Act;
                                  ``(II) shall give preference to 
                                families on its tenant-based waiting 
                                list, if families are applying at the 
                                equivalent time and date with otherwise 
                                equivalent preference under the annual 
                                plan submitted by the public housing 
                                agency to the Secretary pursuant to 
                                section 5A(b); and
                                  ``(III) shall notify families that 
                                are applying for tenant-based 
                                assistance of the opportunity to be 
                                listed on the waiting list maintained 
                                under this subparagraph.
                  ``(L) Owner waiting list.--
                          ``(i) In general.--A public housing agency 
                        may allow an owner of a structure with a 
                        contract for assistance under this paragraph to 
                        maintain a waiting list for units assisted 
                        under this paragraph.
                          ``(ii) Agency plan.--The policy for a waiting 
                        list maintained under this subparagraph and any 
                        applicable preferences or selection criteria 
                        shall be included in the annual plan submitted 
                        by the public housing agency to the Secretary 
                        in accordance with section 5A(b).
                          ``(iii) Agency responsibilities.--If a 
                        waiting list is maintained under this 
                        subparagraph, the public housing agency shall--
                                  ``(I) provide notice of the opening 
                                of the waiting list in the same manner 
                                and to the same extent as is required 
                                of the agency under subparagraph 
                                (K)(ii)(I);
                                  ``(II) notify families that apply for 
                                tenant-based assistance of the 
                                opportunity to be listed on that 
                                waiting list;
                                  ``(III) establish a mechanism to 
                                transmit applications submitted at its 
                                office to the owner for placement on 
                                that waiting list; and
                                  ``(IV) monitor, at reasonable 
                                intervals, the compliance by the owner 
                                with laws applicable to tenant 
                                selection and waiting lists, including 
                                civil rights laws, regulations, and 
                                certifications.
                          ``(iv) Owner responsibilities.--If a waiting 
                        list is maintained under this subparagraph, the 
                        owner of the structure shall--
                                  ``(I) provide notice of the opening 
                                of the waiting list (unless the public 
                                housing agency agrees to provide such 
                                notice for the owner, or notice is not 
                                required pursuant to clause (iii)(I)) 
                                and provide preference to families on 
                                the tenant-based waiting list of the 
                                public housing agency in the same 
                                manner as is required under 
                                subparagraph (K);
                                  ``(II) place on its waiting list, 
                                families that apply at an office of the 
                                agency that accepts applications for 
                                tenant-based assistance;
                                  ``(III) cooperate with requests of 
                                the public housing agency for 
                                information concerning the waiting list 
                                and the tenant selection decisions of 
                                the owner; and
                                  ``(IV) submit written tenant 
                                selection policies and criteria to the 
                                public housing agency for approval, and 
                                make those policies and criteria 
                                available to the public.
                          ``(v) Right to informal review.--A family 
                        that is denied a unit by an owner that 
                        maintains a waiting list under this 
                        subparagraph shall have the same rights to 
                        informal review by a public housing agency as a 
                        family that is denied tenant-based assistance 
                        by a public housing agency, and such review 
                        shall be performed expeditiously so as not to 
                        impede the timely rental of units. The public 
                        housing agency's review at the informal hearing 
                        shall be limited to determining if the owner, 
                        if denying admission, followed applicable law 
                        and the procedures and criteria adopted by the 
                        owner and approved by the public housing agency 
                        for determining the eligibility of applicants 
                        for admission.
                          ``(vi) Applicability.--Except as provided in 
                        this subparagraph, a waiting list maintained by 
                        an owner shall be considered to be a waiting 
                        list maintained by a public housing agency for 
                        assistance under this subsection.
                          ``(vii) Limitation of liability.--No right of 
                        action shall exist against a public housing 
                        agency with respect to an owner's violation of 
                        any applicable law, unless the agency has 
                        actual knowledge that such violation has 
                        occurred or is occurring and--
                                  ``(I) the agency has failed to take 
                                action to cause the owner to cease such 
                                violation; or
                                  ``(II) the public housing agency has 
                                failed to comply with its 
                                responsibilities under clause (iii).''; 
                                and
          (7) by adding at the end the following:
                  ``(N) Fair housing, subsidy layering, and competitive 
                selection requirements.--A public housing agency may 
                attach assistance under this paragraph to units without 
                specific approval by the Secretary of compliance with 
                fair housing, subsidy layering, or competitive 
                selection requirements, if--
                          ``(i) for fair housing compliance, the units 
                        proposed to receive assistance under this 
                        paragraph receive a grant or a loan under a 
                        Federal program pursuant to which the 
                        Secretary, or a designee of the Secretary, has 
                        determined in accordance with regulations that 
                        the site location would meet applicable civil 
                        rights and fair housing requirements;
                          ``(ii) for compliance with subsidy layering 
                        requirements, consistent with the written 
                        policy of the Secretary, the public housing 
                        agency or another public agency has determined 
                        that addition of subsidies under this paragraph 
                        would not duplicate other public funding; or
                          ``(iii) for compliance with competitive 
                        selection requirements, an advertisement for 
                        capital funds announced the potential for 
                        availability of assistance under this 
                        paragraph.
                  ``(O) Use of assistance in conjunction with public 
                housing capital funds.--
                          ``(i) Capital fund and hope vi.--
                        Notwithstanding any provision to the contrary 
                        in this Act, a public housing agency may attach 
                        assistance under this paragraph to a structure 
                        or unit that receives assistance allocated to 
                        the public housing agency under the Capital 
                        Fund, established by section 9(d), or under 
                        section 24.
                          ``(ii) Operating fund.--A unit that receives 
                        assistance under this paragraph shall not be 
                        eligible for assistance under the Operating 
                        Fund established by section 9(e).''.
  (b) Effective Date.--
          (1) In general.--This section and the amendments made by this 
        section shall take effect upon the date of enactment of this 
        Act (with such minor exceptions as the Secretary may specify).
          (2) Rules.--The Secretary shall promulgate rules, as may be 
        necessary, to carry out section 8(o)(13) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(o)(13)), as amended by 
        this Act, and shall publish--
                  (A) proposed rules not later than 6 months after the 
                date of enactment of this Act; and
                  (B) final rules not later than 1 year after the date 
                of enactment of this Act.

SEC. 412. EXPANDED USE OF ENHANCED VOUCHERS.

  (a) In General.--Section 8(t) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(t)), as amended by the preceding provisions of 
this title, is further amended--
          (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by striking ``Enhanced'' and inserting ``Except as 
        provided in paragraph (2), enhanced''; and
          (2) by redesignating paragraphs (2) and (3) as paragraphs (3) 
        and (4), respectively; and
          (3) by inserting after paragraph (1) the following new 
        paragraph:
          ``(2) Enhanced vouchers for residents of units not available 
        for continued rental.--
                  ``(A) Voucher assistance.--In the case of a family 
                who is eligible for enhanced voucher assistance under 
                this subsection and who, on the date of the eligibility 
                event resulting in such family's eligibility, is 
                residing in a dwelling unit that is unavailable for 
                continued rental as provided in subparagraph (B) as a 
                result of such event, enhanced voucher assistance under 
                this subsection for the family shall be voucher 
                assistance under subsection (o), except that under such 
                enhanced voucher assistance--
                          ``(i) subject only to clause (iv), the 
                        assisted family shall pay as rent no less than 
                        the amount the family was paying on the date of 
                        the eligibility event for the project;
                          ``(ii) the assisted family may elect to 
                        reside in any other dwelling unit that is 
                        located within the zip code in which is located 
                        the project in which the family was residing on 
                        the date of the eligibility event for the 
                        project or within a zip code contiguous to such 
                        zip code, and if, during any period after such 
                        election that the family continues to reside, 
                        the rent for the dwelling unit of the family 
                        exceeds the applicable payment standard 
                        established pursuant to subsection (o) for the 
                        unit, the amount of rental assistance provided 
                        on behalf of the family shall be determined 
                        using a payment standard that is equal to the 
                        rent for the dwelling unit (as such rent may be 
                        increased from time-to-time), except that--
                                  ``(I) such rent shall be subject to 
                                paragraph (10)(A) of subsection (o);
                                  ``(II) such payment standard shall 
                                not exceed the greater of 150 percent 
                                of the applicable fair market rents or 
                                150 percent of the applicable payment 
                                standard for the market area; and
                                  ``(III) subject only to the limit in 
                                subclause (II), such payment standard 
                                shall not adversely affect such 
                                assisted families;
                          ``(iii) clause (ii) of this subparagraph 
                        shall not apply and the payment standard for 
                        the dwelling unit occupied by the family shall 
                        be determined in accordance with subsection (o) 
                        if--
                                  ``(I) the assisted family moves, at 
                                any time, to a dwelling unit that is 
                                not located within (aa) the zip code 
                                within which is located the project in 
                                which the family was residing on the 
                                date of the eligibility event for the 
                                project, or (bb) a zip code contiguous 
                                to such zip code; or
                                  ``(II) the voucher is made available 
                                for use by any family other than the 
                                original family on behalf of whom the 
                                voucher was provided; and
                          ``(iv) if the income of the assisted family 
                        declines to a significant extent, the 
                        percentage of income paid by the family for 
                        rent shall not exceed the greater of 30 percent 
                        or the percentage of income paid at the time of 
                        the eligibility event for the project.
                  ``(B) Unavailability due to conversion.--A dwelling 
                unit shall be considered to be unavailable for 
                continued rental as provided in this subparagraph if 
                the eligibility event for the project occurs in 
                connection with a conversion of the unit to 
                condominium, cooperative, or commercial use, after 
                having obtained all necessary land use approvals.''.
  (b) Applicability.--No funds for enhanced vouchers under section 
8(t)(2) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(t)(2)), as added by the amendments made by subsection (a) of this 
section, shall be provided from amounts appropriated for fiscal years 
prior to fiscal year 2003.
  (c) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall issue regulations necessary 
to carry out the amendment made by subsection (a).

SEC. 413. DEMONSTRATION PROGRAM FOR RENTAL ASSISTANCE FOR GRANDPARENT-
                    HEADED OR RELATIVE-HEADED FAMILIES.

  (a) In General.--The Secretary of Housing and Urban Development shall 
carry out a demonstration program to determine the feasibility of 
providing rental assistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) for the rental of suitable 
dwelling units by covered families.
  (b) Eligible Units.--Under the demonstration program, the Secretary 
shall make rental assistance amounts reserved pursuant to subsection 
(f) of this section available to public housing agencies selected to 
participate in the program for use only for assistance on behalf of 
covered families renting qualified dwelling units. Such a public 
housing agency may not initially provide voucher assistance under this 
section for any family after the end of fiscal year 2006.
  (c) Services.--The Secretary of Housing and Urban Development shall 
require any public housing agency participating in the demonstration 
program under this section to ensure that families receiving rental 
assistance pursuant to this section are provided with supportive 
services that are tailored to the needs of children and covered 
families. The Secretary shall coordinate with the heads of other 
Federal agencies as may be appropriate to assist in ensuring the 
provision of such services.
  (d) Selection.--The Secretary of Housing and Urban Development shall 
provide for public housing agencies to apply to participate in the 
demonstration program under this section and, during the period 
consisting of fiscal years 2003 through 2006 shall, to the extent 
amounts are available pursuant to subsection (f), select not less than 
two and not more than four agencies for such participation based on the 
ability of the applicant to provide assistance and services under the 
program and national geographical diversity among agencies 
participating in the program.
  (e) Report.--Not later than 18 months after the date of the enactment 
of this Act, the Secretary of Housing and Urban Development shall 
submit a report to the Congress describing the demonstration program 
under this section and analyzing the effectiveness of the program.
  (f) Funding.--Of any amounts made available for voucher assistance 
under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) for fiscal year 2003 and fiscal years thereafter, the 
Secretary of Housing and Urban Development shall reserve such amounts 
in such fiscal years as may be necessary to provide voucher assistance 
for the agencies selected under subsection (d) for use only for 
providing assistance under this section.

SEC. 414. ELIGIBILITY OF GRANDPARENT-HEADED AND RELATIVE-HEADED 
                    FAMILIES FOR FAMILY UNIFICATION ASSISTANCE.

  Section 8(x) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(x)) is amended--
          (1) in paragraph (2)--
                  (A) by striking ``section 8'' and inserting ``this 
                section'';
                  (B) by striking ``and'' before ``(B)'' and inserting 
                a comma; and
                  (C) by inserting before the period at the end the 
                following: ``, or (C) a covered family, who is 
                otherwise eligible for such assistance, for rental of a 
                qualified dwelling unit'';
          (2) in the second sentence of paragraph (3)--
                  (A) by inserting ``, as appropriate (A)'' after 
                ``containing''; and
                  (B) by inserting before the period at the end the 
                following: ``, or (B) a description of the need for 
                assistance under this subsection for covered 
                families''; and
          (3) in paragraph (4), by adding at the end the following new 
        subparagraphs:
                  ``(C) Child.--The term `child' means an individual 
                who--
                          ``(i) is not attending school and is not more 
                        than 18 years of age; or
                          ``(ii) is attending school and is not more 
                        than 19 years of age.
                  ``(D) Covered family.--The term `covered family' 
                means a family that--
                          ``(i) includes a child; and
                          ``(ii) has a head of household who is--
                                  ``(I) a grandparent of the child who 
                                is raising the child; or
                                  ``(II) a relative of the child who is 
                                raising the child.
                  ``(E) Grandparent.--The term `grandparent' means, 
                with respect to a child, an individual who is a 
                grandparent or stepgrandparent of the child by blood or 
                marriage, regardless of the age of such individual. In 
                the case of a child who was adopted, the term includes 
                an individual who, by blood or marriage, is a 
                grandparent or stepgrandparent of the child as adopted.
                  ``(F) Qualified dwelling unit.--The term `qualified 
                dwelling unit' means a dwelling unit that--
                          ``(i) has at least 2 separate bedrooms;
                          ``(ii) is equipped with design features 
                        appropriate to meet the special physical needs 
                        of elderly persons, as needed; and
                          ``(iii) is equipped with design features 
                        appropriate to meet the special physical needs 
                        of young children.
                  ``(G) Raising a child.--The term `raising a child' 
                means, with respect to an individual, that the 
                individual--
                          ``(i) resides with the child; and
                          ``(ii) is the primary caregiver for the 
                        child--
                                  ``(I) because the biological or 
                                adoptive parents of the child do not 
                                reside with the child or are unable or 
                                unwilling to serve as the primary 
                                caregiver for the child; and
                                  ``(II) regardless of whether the 
                                individual has a legal relationship to 
                                the child (such as guardianship or 
                                legal custody) or is caring for the 
                                child informally and has no such legal 
                                relationship with the child.
                  ``(H) Relative.--The term `relative' means, with 
                respect to a child, an individual who--
                          ``(i) is not a parent of the child by blood 
                        or marriage; and
                          ``(ii) is a relative of the child by blood or 
                        marriage, regardless of the age of the 
                        individual.
                In the case of a child who was adopted, the term 
                includes an individual who, by blood or marriage, is a 
                relative of the family who adopted the child.''.

SEC. 415. INCREASED PAYMENT STANDARD.

  Section 8(o)(1)(D) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(1)(D)) is amended--
          (1) by striking ``(D) Approval.--The'' and inserting the 
        following:
                  ``(D) Exception payment standards.--
                          ``(i) Approval.--The''; and
          (2) by adding at the end the following:
                          ``(ii) Increased payment standard.--A public 
                        housing agency may establish a payment standard 
                        for the same size dwelling unit in a market 
                        area or portion of a market area between 110 
                        and 120 percent of the fair market rent, if the 
                        payment standard for the market area or portion 
                        of a market area has been set at 110 percent or 
                        above for the 6 months prior to the 
                        establishment of the new payment standard and 
                        the public housing agency determines that it 
                        has--
                                  ``(I) a voucher success rate (the 
                                proportion of families that are issued 
                                a voucher that succeed in leasing a 
                                unit within the timeframe provided by 
                                the public housing agency to search for 
                                housing) of not more than 80 percent or 
                                has provided an extended search time of 
                                not less than 90 days to a significant 
                                number of voucher recipients; or
                                  ``(II) problems with concentration of 
                                the voucher holders in high poverty 
                                areas.
                          ``(iii) Disability accommodation.--A public 
                        housing agency may establish a payment standard 
                        of not more than 120 percent of the fair market 
                        rent where necessary as a reasonable 
                        accommodation for a person with a disability, 
                        without approval of the Secretary. A public 
                        housing agency may seek approval of the 
                        Secretary to use a payment standard greater 
                        than 120 percent of the fair market rent as a 
                        reasonable accommodation for a person with a 
                        disability.
                          ``(iv) Secretary approval.--A public housing 
                        agency may establish a payment standard in 
                        accordance with clause (ii) without approval of 
                        the Secretary, if the public housing agency 
                        includes in its annual plan that is submitted 
                        to the Secretary pursuant to section 5A(b)--
                                  ``(I) the reasons for the increase in 
                                the payment standard;
                                  ``(II) a description of how and why 
                                the public housing agency has 
                                determined that it meets the 
                                requirements of clause (ii); and
                                  ``(III) a description of other steps 
                                the public housing agency is taking, in 
                                addition to increasing the payment 
                                standard, to address the problems of 
                                voucher utilization, voucher success 
                                rates (the proportion of families that 
                                are issued a voucher that succeed in 
                                leasing a unit within the timeframe 
                                provided by the public housing agency 
                                to search for housing), and 
                                concentration of voucher holders.
                          ``(v) Applicability.--Clauses (ii) through 
                        (iv) shall apply with respect only to amounts 
                        made available for rental assistance under this 
                        subsection for fiscal year 2004 and fiscal 
                        years thereafter.''.

SEC. 416. PROTECTION OF INNOCENT TENANTS.

  Clause (iii) of section 8(d)(1)(B) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(d)(1)(B)(iii)) is amended by inserting before 
the semicolon at the end the following: ``; except that such criminal 
activity, engaged in by a member of a tenant's household or any guest 
or other person under the tenant's control, shall not be cause for 
termination of tenancy of the tenant if the tenant or immediate member 
of the tenant's family is a victim of domestic violence or dating 
violence and, as a result, could not control or prevent the criminal 
activity relating to domestic violence or dating violence; and except 
that nothing in this clause may be construed to limit the authority of 
a public housing agency to evict individuals who engage in criminal 
acts of physical violence against family members or others, and in all 
cases, a public housing agency shall consider the safety, security, and 
continued maintenance of victims of domestic violence to be of 
paramount importance''.

                        TITLE V--PUBLIC HOUSING

                     Subtitle A--General Provisions

SEC. 501. PHA JOINT VENTURES.

  Section 13(b) of the United States Housing Act of 1937 (42 U.S.C. 
1437k(b)) is amended by adding at the end the following new paragraph:
          ``(4) Non-federal funds and activities.--This subsection 
        shall not apply to any subsidiary, joint venture, partnership, 
        or business arrangement, or any activity conducted by such an 
        entity, that does not involve holding or expending funds 
        received from the Federal Government or proceeds or income 
        derived from such funds.''.

SEC. 502. THIRD-PARTY PUBLIC HOUSING ASSESSMENT SYSTEM.

  (a) Establishment.--The Secretary of Housing and Urban Development 
shall provide for the development of a third-party assessment system 
for evaluating the performance of public housing agencies, in 
accordance with this section.
  (b) Purposes.--The assessment system developed under this section 
shall--
          (1) provide an objective assessment of the overall 
        performance of public housing agencies in all major areas of 
        management operations and in discharging their obligations 
        under the United States Housing Act of 1937;
          (2) identify quantifiable areas of the management and 
        financial condition of public housing agencies; and
          (3) determine the physical condition of public housing 
        dwelling units to ensure that they are maintained in accordance 
        with the requirements pursuant to the United States Housing Act 
        of 1937.
  (c) Testing and Prototype.--
          (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, to the extent amounts are made 
        available to carry out this section, the Secretary of Housing 
        and Urban Development shall enter into a contract with a public 
        entity or a private for-profit or nonprofit entity to develop a 
        system prototype for the third-party assessment system required 
        under this section and to test such prototype. Such contract 
        shall require such entity to submit the prototype assessment 
        system to the Congress not later than the expiration of the 6-
        month period beginning upon execution of the contract and to 
        complete such testing not later than the expiration of the 12-
        month period beginning upon execution of the contract.
          (2) Consultation.--In carrying out the testing and prototype 
        development under this subsection, the entity selected under 
        this subsection shall consult with individuals and 
        organizations experienced in managing public housing and their 
        representatives, private real estate managers, representatives 
        from State and local governments, residents of public housing, 
        and the Secretary.
  (d) Report.--Not later than the expiration of the 12-month period 
beginning upon execution of the contract referred to in subsection 
(c)(1), the Secretary of Housing and Urban Development shall submit to 
the Congress a report describing the results and recommendations 
regarding the testing of the prototype assessment system conducted 
pursuant to this subsection, which shall include any comments and 
recommendations of the persons and entities consulted with pursuant to 
subsection (c)(2) and any recommendations regarding the replacement of 
the public housing management assessment system established under 
section 6(j) of the United States Housing Act of 1937 (42 U.S.C. 
1437d(j)).
  (e) Rule of Construction.--This section may not be construed to--
          (1) provide for or require the implementation of the third-
        party assessment system developed pursuant to this section; or
          (2) alter, affect, suspend, terminate, or delay the 
        effectiveness or applicability of the public housing assessment 
        system under section 6(j) of the United States Housing Act of 
        1937 (42 U.S.C. 1437d(j)) or any regulations issued, or to be 
        issued, pursuant to such section.

SEC. 503. PUBLIC HOUSING AGENCY PLANS FOR CERTAIN SMALL PUBLIC HOUSING 
                    AGENCIES.

  (a) In General.--Section 5A(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437c-1(b)) is amended by adding at the end the 
following new paragraph:
          ``(3) Suspension of filing requirement for certain small 
        phas.--
                  ``(A) In general.--Notwithstanding paragraph (1) or 
                any other provision of this Act--
                          ``(i) the requirement under paragraph (1) 
                        shall not apply to any qualified small public 
                        housing agency for fiscal years 2003, 2004, or 
                        2005; and
                          ``(ii) any reference in this section or any 
                        other provision of law to a `public housing 
                        agency' shall not be considered to refer to any 
                        qualified small public housing agency for such 
                        fiscal years, to the extent such reference 
                        applies to the requirement to submit a public 
                        housing agency plan under subsection (b).
                  ``(B) Definition.--For purposes of this paragraph, 
                the term `qualified small public housing agency' means 
                a public housing agency that meets all of the following 
                requirements:
                          ``(i) The sum of (I) the number of public 
                        housing dwelling units administered by the 
                        agency, and (II) the number of vouchers under 
                        section 8(o) of the United States Housing Act 
                        of 1937 (42 U.S.C. 1437f(o)) administered by 
                        the agency, is 100 or fewer.
                          ``(ii) The agency is not designated pursuant 
                        to section 6(j)(2) as a troubled public housing 
                        agency.
                          ``(iii) The agency provides assurances 
                        satisfactory to the Secretary that, during 
                        fiscal years 2003, 2004, and 2005, 
                        notwithstanding the inapplicability of the 
                        requirements under section 5A relating to 
                        resident advisory boards and public hearings 
                        and notice, residents of public housing 
                        administered by the agency will have an 
                        adequate and comparable opportunity for 
                        participation and notice regarding 
                        establishment of the goals, objectives, and 
                        policies of the public housing agency.''.
  (b) Report.--Not later than September 30, 2004, the Comptroller 
General of the United States shall submit a report to the Congress 
describing and analyzing the administrative, financial, and other 
burdens that would be imposed on public housing agencies described in 
section 5A(b)(3)(B)(i) of the United States Housing Act of 1937 (42 
U.S.C. 1437c-1(b)(3)(B)(i)), as amended by subsection (a) of this 
section, if such agencies were required to comply fully with the 
requirements under section 5A(b)(1) of such Act.

SEC. 504. AFFORDABLE ASSISTED LIVING FACILITIES DEMONSTRATION PROGRAM.

  Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended by adding at the end the following new section:

``SEC. 36. DEMONSTRATION PROGRAM FOR GRANTS FOR CONVERSION OF PUBLIC 
                    HOUSING TO ASSISTED LIVING FACILITIES.

  ``(a) Grant Authority.--To the extent only that amounts are 
appropriated in advance to carry out this section, the Secretary shall 
carry out a program, in accordance with this section, to demonstrate 
the effectiveness of making grants to public housing agencies for use 
for activities designed to convert dwelling units in eligible projects 
described in subsection (b) to assisted living facilities or other 
facilities that expand the availability of supportive services, to 
enhance the ability of elderly persons to maintain independent living.
  ``(b) Eligible Projects.--An eligible project described in this 
subsection is a public housing project (or a portion thereof) that is 
primarily occupied by elderly persons.
  ``(c) Applications.--Applications for grants under the demonstration 
program under this section shall be submitted to the Secretary in 
accordance with such procedures as the Secretary shall establish. Such 
applications shall contain--
          ``(1) a description of the proposed conversion activities for 
        which a grant under the program is requested;
          ``(2) the amount of the grant requested;
          ``(3) a description of the resources that are expected to be 
        made available, if any, in conjunction with the grant under the 
        program; and
          ``(4) such other information or certifications that the 
        Secretary determines to be necessary or appropriate.
  ``(d) Funding for Services.--The Secretary may not make a grant under 
the demonstration program under this section unless the application 
contains sufficient evidence, in the determination of the Secretary, 
that there will be adequate funding for supportive services for 
residents of the facility converted with grant amounts.
  ``(e) Service Coordinators.--An application for a grant under the 
demonstration program under this section may include a request for, and 
the Secretary may provide funds under the grant for, amounts to provide 
service coordinators to assist in the provision of supportive services 
for residents of the facilities converted with grant amounts.
  ``(f) Scope.--Grants under the demonstration program under this 
section may be made only with respect to three eligible projects.
  ``(g) Selection Criteria.--The Secretary shall select applications 
for grants under the demonstration program under this section based 
upon selection criteria, which shall be established by the Secretary 
and shall include--
          ``(1) the extent to which the conversion is likely to provide 
        assisted living facilities or supportive services that are 
        needed or are expected to be needed by the categories of 
        elderly persons that the assisted living facility is intended 
        to serve;
          ``(2) the extent of financial need on the part of the 
        applicant for funding to carry out the conversion activities 
        proposed;
          ``(3) the extent to which the agency has evidenced community 
        support for the conversion, by such indicators as letters of 
        support from the local community for the conversion and 
        financial contributions from public and private sources;
          ``(4) the extent to which the applicant demonstrates a strong 
        commitment to promoting the autonomy and independence of the 
        elderly persons that the assisted living facility or other 
        supportive services facility is intended to serve;
          ``(5) the quality, completeness, and managerial capability of 
        providing services to elderly residents, especially in such 
        areas as meals, 24-hour staffing, and on-site health care; and
          ``(6) such other criteria as the Secretary determines to be 
        appropriate to ensure that funds made available under the 
        demonstration program under this section are used effectively.
  ``(h) Definition.--For the purposes of this section, the term 
`assisted living facility' has the meaning given such term in section 
232(b) of the National Housing Act (12 U.S.C. 1715w(b)).
  ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated for providing grants under the demonstration program under 
this section such sums as may be necessary for each of fiscal years 
2003 and 2004.''.

SEC. 505. PROTECTION OF INNOCENT TENANTS.

  Paragraph (6) of section 6(l) of the United States Housing Act of 
1937 (42 U.S.C. 1437d(l)(6)) is amended by inserting before the 
semicolon at the end the following: ``; except that such criminal 
activity, engaged in by a member of a tenant's household or any guest 
or other person under the tenant's control, shall not be cause for 
termination of tenancy of the tenant if the tenant or immediate member 
of the tenant's family is a victim of domestic violence or dating 
violence and, as a result, could not control or prevent the criminal 
activity relating to domestic violence or dating violence; and except 
that nothing in this paragraph may be construed to limit the authority 
of a public housing agency to evict individuals who engage in criminal 
acts of physical violence against family members or others, and in all 
cases, a public housing agency shall consider the safety, security, and 
continued maintenance of victims of domestic violence to be of 
paramount importance''.

               Subtitle B--HOPE VI Revitalization Program

SEC. 521. SELECTION CRITERIA.

  Section 24(e)(2) of the United States Housing Act of 1937 (42 U.S.C. 
1437v(e)(2)) is amended--
          (1) by striking the matter preceding subparagraph (A) and 
        inserting the following:
          ``(2) Selection criteria.--The Secretary shall establish 
        criteria for the award of grants under this section and shall 
        include among the factors--'';
          (2) in subparagraph (B), by striking ``large-scale'';
          (3) in subparagraph (D), by inserting ``and ongoing 
        implementation'' after ``development'';
          (4) in subparagraph (H), by striking ``and'' at the end;
          (5) by redesignating subparagraph (I) as subparagraph (M); 
        and
          (6) by inserting after subparagraph (H) the following new 
        subparagraphs:
                  ``(I) the extent to which the applicant can commence 
                and complete the revitalization plan expeditiously;
                  ``(J) the extent to which the plan minimizes 
                temporary or permanent displacement of current 
                residents of the public housing site who wish to remain 
                in or return to the revitalized community;
                  ``(K) the extent to which the plan sustains or 
                creates more project-based housing units available to 
                persons eligible for public housing in markets where 
                there is demand for the maintenance or creation of such 
                units;
                  ``(L) the extent to which the plan gives to existing 
                residents priority for occupancy in dwelling units in 
                the revitalized community; and''.

SEC. 522. AUTHORIZATION OF APPROPRIATIONS.

  Paragraph (1) of section 24(m) of the United States Housing Act of 
1937 (42 U.S.C. 1437v(m)(1)) is amended to read as follows:
          ``(1) Authorization of appropriations.--There are authorized 
        to be appropriated for grants under this section such sums as 
        may be necessary for each of fiscal years 2003 and 2004.''.

SEC. 523. EXTENSION OF PROGRAM.

  Section 24(n) of the United States Housing Act of 1937 (42 U.S.C. 
1437v(n)) is amended by striking ``September 30, 2002'' and inserting 
``September 30, 2004''.

SEC. 524. HOPE VI GRANTS FOR ASSISTING AFFORDABLE HOUSING THROUGH MAIN 
                    STREET PROJECTS.

  (a) Purposes.--Section 24(a) of the United States Housing Act of 1937 
(42 U.S.C. 1437v(a)) is amended by adding after and below paragraph (4) 
the following:
``It is also the purpose of this section to provide assistance to 
smaller communities for the purpose of facilitating the development of 
affordable housing for low-income families that is undertaken in 
connection with a main street revitalization or redevelopment project 
in such communities.''.
  (b) Grants for Assisting Affordable Housing Developed Through Main 
Street Projects in Smaller Communities.--Section 24 of the United 
States Housing Act of 1937 (42 U.S.C. 1437v) is amended--
          (1) by redesignating subsection (n) as subsection (o); and
          (2) by inserting after subsection (m) the following new 
        subsection:
  ``(n) Grants for Assisting Affordable Housing Developed Through Main 
Street Projects in Smaller Communities.--
          ``(1) Authority and use of grant amounts.--The Secretary may 
        make grants under this subsection to smaller communities. Such 
        grant amounts shall be used by smaller communities only to 
        provide assistance to carry out eligible affordable housing 
        activities under paragraph (3) in connection with an eligible 
        project under paragraph (2).
          ``(2) Eligible project.--For purposes of this subsection, the 
        term `eligible project' means a project that--
                  ``(A) the Secretary determines, under the criteria 
                established pursuant to paragraph (3), is a main street 
                project;
                  ``(B) is carried out within the jurisdiction of 
                smaller community receiving the grant; and
                  ``(C) involves the development of affordable housing 
                that is located in the commercial area that is the 
                subject of the project.
          ``(3) Main street projects.--The Secretary shall establish 
        requirements for a project to be consider a main street project 
        for purposes of this section, which shall require that the 
        project--
                  ``(A) has as its purpose the revitalization or 
                redevelopment of a historic or traditional commercial 
                area;
                  ``(B) involves investment, or other participation, by 
                the government for, and private entities in, the 
                community in which the project is carried out; and
                  ``(C) complies with such historic preservation 
                guidelines or principles as the Secretary shall 
                identify to preserve significant historic or 
                traditional architectural and design features in the 
                structures or area involved in the project.
          ``(4) Eligible affordable housing activities.--For purposes 
        of this subsection, the activities described in subsection 
        (d)(1) shall be considered eligible affordable housing 
        activities, except that--
                  ``(A) such activities shall be conducted with respect 
                to affordable housing rather than with respect to 
                severely distressed public housing projects; and
                  ``(B) eligible affordable housing activities under 
                this subsection shall not include the activities 
                described in subparagraphs (B) through (F) or (J) 
                through (L) of subsection (d)(1).
          ``(5) Maximum grant amount.--A grant under this subsection 
        for a fiscal year for a single smaller community may not exceed 
        $1,000,000.
          ``(6) Contribution requirement.--A smaller community applying 
        for a grant under this subsection shall be considered an 
        applicant for purposes of subsection (c) (relating to 
        contributions by applicants), except that--
                  ``(A) such supplemental amounts shall be used only 
                for carrying out eligible affordable housing 
                activities; and
                  ``(B) paragraphs (1)(B) and (3) shall not apply to 
                grants under this subsection.
          ``(7) Applications and selection.--
                  ``(A) Application.--Pursuant to subsection (e)(1), 
                the Secretary shall provide for smaller communities to 
                apply for grants under this subsection, except that the 
                Secretary may establish such separate or additional 
                criteria for applications for such grants as may be 
                appropriate to carry out this subsection.
                  ``(B) Selection criteria.--The Secretary shall 
                establish selection criteria for the award of grants 
                under this subsection, which shall be based on the 
                selection criteria established pursuant to subsection 
                (e)(2), with such changes as may be appropriate to 
                carry out the purposes of this subsection.
          ``(8) Cost limits.--The cost limits established pursuant to 
        subsection (f) shall apply to eligible affordable housing 
        activities assisted with grant amounts under this subsection.
          ``(9) Inapplicability of other provisions.--The provisions of 
        subsections (g) (relating to disposition and replacement of 
        severely distressed public housing), (h) (relating to 
        administration of grants by other entities), and (i) (relating 
        to withdrawal of funding) shall not apply to grants under this 
        subsection.
          ``(10) Reporting.--The Secretary shall require each smaller 
        community receiving a grant under this subsection to submit a 
        report regarding the use of all amounts provided under the 
        grant.
          ``(11) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                  ``(A) Affordable housing.--The term `affordable 
                housing' means rental or homeownership dwelling units 
                that--
                          ``(i) are made available for initial 
                        occupancy subject to the same rules regarding 
                        level of income and income mix as dwelling 
                        units in public housing projects assisted with 
                        a grant under this section; and
                          ``(ii) are subject to the same rules 
                        regarding occupant contribution toward rent or 
                        purchase and terms of rental or purchase as 
                        dwelling units in public housing projects 
                        assisted with a grant under this section.
                  ``(B) Smaller community.--The term `smaller 
                community' means a unit of general local government (as 
                such term is defined in section 102 of the Housing and 
                Community Development Act of 1974 (42 U.S.C. 5302)) 
                that--
                          ``(i) has a population of 30,000 or fewer; 
                        and
                          ``(ii)(I) may not be not served by a public 
                        housing agency; or
                          ``(II) is served by a single public housing 
                        agency, which agency administers 100 or fewer 
                        public housing dwelling units.''.
  (c) Annual Report.--Section 24(l) of the United States Housing Act of 
1937 (42 U.S.C. 1437v(l)) is amended--
          (1) in paragraph (3), by striking ``; and'' and inserting ``, 
        including a specification of the amount and type of assistance 
        provided under subsection (n);'';
          (2) by redesignating paragraph (4) as paragraph (5); and
          (3) by inserting after paragraph (3) the following new 
        paragraph:
          ``(4) the types of projects funded, and number of affordable 
        housing dwelling units developed with, grants under subsection 
        (n); and''.
  (d) Funding.--Section 24(m) of the United States Housing Act of 1937 
(42 U.S.C. 1437v(m)) is amended by adding at the end the following new 
paragraph:
          ``(3) Of the amount appropriated pursuant to paragraph (1) 
        for any fiscal year, the Secretary shall provide up to 5 
        percent for use only for grants under subsection (n).''.

                  TITLE VI--HOMELESS HOUSING PROGRAMS

SEC. 601. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS.

  (a) Authorization of Appropriations.--Section 208 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11318) is amended to read as 
follows:

``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this title 
such sums as may be necessary for each of fiscal years 2003 and 
2004.''.
  (b) Redesignation of Council.--Title II of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11311 et seq.) is amended--
          (1) by striking the title designation and heading and 
        inserting the following:

    ``TITLE II--UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS'';

          (2) in section 201, by striking ``Interagency Council on the 
        Homeless'' and inserting ``United States Interagency Council on 
        Homelessness''; and
          (3) in section 207(1), by striking ``Interagency Council on 
        the Homeless'' and inserting ``United States Interagency 
        Council on Homelessness''.
  (c) Conforming Amendments.--The McKinney-Vento Homeless Assistance 
Act is amended--
          (1) in section 102(b)(1) (42 U.S.C. 11301(b)(1)), by striking 
        ``an Interagency Council on the Homeless'' and inserting ``the 
        United States Interagency Council on Homelessness'';
          (2) in section 501 (42 U.S.C. 11411), in subsections 
        (c)(2)(A) and (d)(3), by striking ``Interagency Council on the 
        Homeless'' each place such term appears and inserting ``United 
        States Interagency Council on Homelessness''; and
          (3) in the table of contents in section 101(b) (42 U.S.C. 
        11301 note), by striking the item relating to title II and 
        inserting the following new item:

    ``TITLE II--UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS''.

SEC. 602. FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD AND SHELTER PROGRAM.

  Section 322 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11352) is amended to read as follows:

``SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this title 
such sums as may be necessary for each of fiscal years 2003 and 
2004.''.

SEC. 603. EMERGENCY SHELTER GRANTS PROGRAM.

  Section 417 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11377) is amended to read as follows:

``SEC. 417. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this subtitle 
such sums as may be necessary for each of fiscal years 2003 and 
2004.''.

SEC. 604. SUPPORTIVE HOUSING PROGRAM.

  (a) Authorization of Appropriations.--Subsection (a) of section 429 
of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11389(a)) is 
amended to read as follows:
  ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subtitle (not including activities 
funded pursuant to subsection (d) of this section) such sums as may be 
necessary for each of fiscal years 2003 and 2004.''.
  (b) Funding of Renewals Through Housing Certificate Fund.--Section 
429 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11389) is 
amended by adding at the end the following new subsection:
  ``(d) Funding of Renewals.--
          ``(1) In general.--For fiscal year 2003 and fiscal years 
        thereafter, assistance under this subtitle may be funded using 
        amounts appropriated for section 8 of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f).
          ``(2) Authorization of appropriations.--In addition to any 
        amounts otherwise made available for assistance under section 8 
        of the United States Housing Act of 1937 (42 U.S.C. 1437f), 
        there are authorized to be appropriated such sums as may be 
        necessary for each of fiscal years 2003 and 2004 for the 
        renewal of contracts for permanent housing activities under 
        this subtitle. Any such renewals shall be made only for a term 
        of one year.''.
  (c) Set-Aside.--Subtitle A of title IV of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11361 et seq.) is amended by adding at the 
end the following new section:

``SEC. 403. SET-ASIDE FOR PERMANENT HOUSING.

  ``Notwithstanding any other provision of this title, of the aggregate 
amount made available for assistance under this title for any fiscal 
year, not less than 30 percent shall be used only for permanent housing 
activities for homeless persons. Amounts made available under section 
429(d) or 463(c) for renewals of contracts for permanent housing shall 
be disregarded for purposes of the preceding sentence. For purposes of 
this section, the term `permanent housing activities' includes 
permanent housing designed primarily to serve homeless families with 
children.''.
  (d) Elimination of Cap on Capital Expenses.--Section 423(a) of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11383(a)) is 
amended--
          (1) in the first sentence of paragraph (1)--
                  (A) by striking ``, in an amount not to exceed 
                $200,000,''; and
                  (B) by striking ``; except that'' and all that 
                follows through ``rehabilitation costs''; and
          (2) in paragraph (2), by striking ``, in an amount not to 
        exceed $400,000,''.

SEC. 605. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS.

  Subsection (a) of section 441 of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11401(a)) is amended to read as follows:
  ``(a) Increase in Budget Authority.--The budget authority available 
under section 5(c) of the United States Housing Act of 1937 for 
assistance under section 8(e)(2) of such Act (as in effect pursuant to 
section 289(b)(2) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12839(b)(2)) is authorized to be increased by such sums 
as may be necessary on or after each of October 1, 2002, and October 1, 
2003.''.

SEC. 606. SHELTER PLUS CARE.

  (a) Authorization of Appropriations.--The first sentence of section 
463(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11403h(a)) is amended to read as follows: ``For purposes of the housing 
programs under this subtitle, there are authorized to be appropriated 
to carry out this subtitle (not including activities funded pursuant to 
subsection (c) of this section) such sums as may be necessary for each 
of fiscal years 2003 and 2004.''.
  (b) Funding of Renewals Through Housing Certificate Fund.--Section 
463 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11403h) is 
amended by adding at the end the following new subsection:
  ``(c) Funding of Renewals.--
          ``(1) In general.--For fiscal year 2003 and fiscal years 
        thereafter, assistance under this subtitle may be funded using 
        amounts appropriated for section 8 of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f).
          ``(2) Authorization of appropriations.--In addition to any 
        amounts otherwise made available for assistance under section 8 
        of the United States Housing Act of 1937 (42 U.S.C. 1437f), 
        there are authorized to be appropriated such sums as may be 
        necessary for each of fiscal years 2003 and 2004 for the 
        renewal of contracts under this subtitle. Any such renewals 
        shall be made only for a term of one year.''.
  (c) Conditions of Renewal.--Section 456 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11403e) is amended--
          (1) by inserting ``(a) Approval of Assistance.--'' before 
        ``The Secretary''; and
          (2) by adding at the end the following new subsection:
  ``(b) Conditions of Renewal.--The Secretary may not provide 
assistance under this subtitle for any housing previously assisted 
under this subtitle unless the unit of general local government in 
which such project is located certifies that the housing complies with 
such housing safety and quality standards, as the Secretary shall 
establish and the Secretary reviews and approves such certification.''.

SEC. 607. HOUSING FOR DOMESTIC VIOLENCE AND SEXUAL ASSAULT VICTIMS.

  (a) Funding.--There are authorized to be appropriated such sums as 
may be necessary for each of fiscal years 2003 through 2007 for 
assistance under this section.
  (b) Housing Assistance.--Any amounts made available pursuant to 
subsection (a) of this section shall be available to the Secretary only 
to provide assistance to qualified organizations for the purpose of 
providing, on behalf only of eligible individuals or families--
          (1) supportive housing (as such term is defined in section 
        422 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11382));
          (2) tenant-based rental assistance;
          (3) financial assistance for a security deposit, first 
        month's rent, or ongoing rental assistance; or
          (4) project-based transitional housing, except that such 
        assistance may be used only to cover expenses of renovation, 
        repair, conversion and operation of such housing.
  (c) Eligible Individuals and Families.--An eligible individual or 
family under this paragraph is an individual or family that meets both 
of the following requirements:
          (1) Victims.--The individual has been victimized by domestic 
        violence, stalking, or adult or child sexual assault or the 
        family is a victimized family.
          (2) Relocation.--The qualified organization providing the 
        housing assistance pursuant to subsection (b) for which the 
        individual or family is applying has determined that the 
        individual or member of the family who was a victim of the 
        domestic violence, stalking, or adult or child sexual assault 
        reasonably believes that relocation from such residence will 
        assist in avoiding future domestic violence, stalking, or adult 
        or child sexual assault against such individual or another 
        member of the family.
  (d) Matching Requirement.--Each qualified organization receiving 
assistance under this section shall supplement such assistance with a 
25 percent match of funds for supportive services (as such term is 
defined in section 422 of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11382)) from sources other than this section. Each such 
organization shall certify to the Secretary its compliance with this 
section and shall include with the certification a description of the 
sources and amounts of such supplemental funds.
  (e) Allocation.--
          (1) Competition.--Amounts made available pursuant to this 
        section shall be allocated by the Secretary, among qualified 
        organizations that submit applications to the Secretary, under 
        a national competition based on demonstrated need for such 
        assistance, including the extent of service provided to 
        underserved populations (as such term is defined in section 
        2003 of the Omnibus Crime Control and Safe Streets Act of 1968 
        (42 U.S.C. 3796gg-2)) and the ability to undertake and carry 
        out a program under this section, as the Secretary shall 
        determine.
          (2) Set aside for indian tribes.--Of the total funds made 
        available pursuant to subsection (a) for any fiscal year, at 
        least 10 percent shall be used for grants to Indian tribes or 
        Indian tribal organizations that provide emergency shelter, 
        transitional housing, or permanent housing or supportive 
        services to individuals or families victimized by domestic 
        violence, stalking, or adult or child sexual assault. Indian 
        tribes or Indian tribal organizations that receive such grants 
        may apply for and receive other grants from the total funds 
        appropriated under this section. All other grants awarded shall 
        go to qualified organizations.
  (f) Applications.--The Secretary shall provide for qualified 
organizations to apply for assistance under this section and shall 
require that such an application shall--
          (1) contain such certifications as the Secretary shall 
        require to ensure that--
                  (A) the applicant organization, to the extent 
                practicable, has entered into cooperative agreements or 
                memoranda of understanding with homeless coalitions, 
                public housing authorities, and community-based 
                agencies that represent underserved populations to 
                establish procedures for facilitating referrals to 
                transitional housing and for implementing tenant-based 
                housing assistance programs; and
                  (B) any construction or physical improvements carried 
                out with assistance amounts under this section will 
                comply with any applicable housing, safety, and 
                licensing codes, laws, or regulations of the State or 
                local government in which the structure is located; and
          (2) describe how the services to be provided with assistance 
        under this section will assist victims of domestic violence in 
        obtaining permanent housing.
  (g) Confidentiality.--A qualified organization may not be provided 
assistance under this section unless the organization agrees to ensure 
the confidentiality of--
          (1) the names of individuals and their dependents assisted 
        with services or in facilities funded, in whole or in part, 
        with such amounts; and
          (2) any other information regarding such individuals and 
        dependents,
except to the extent such information is otherwise required by law to 
be disclosed.
  (h) Definitions.--For purposes of this section:
          (1) Domestic violence.--The term ``domestic violence'' 
        includes acts or threats of violence or extreme cruelty (as 
        such term is referred to in section 216 of the Immigration and 
        Nationality Act (8 U.S.C. 1186a)), not including acts of self-
        defense, committed by a current or former spouse of the victim, 
        by a person with whom the victim has a child in common, by a 
        person who is cohabiting with or has cohabited with the victim, 
        by a person who is or has been in a continuing social 
        relationship of a romantic or intimate nature with the victim, 
        by a person similarly situated to a spouse of the victim under 
        the domestic or family violence laws of the jurisdiction, or by 
        any other person against a victim who is protected from that 
        person's acts under the domestic or family violence laws of the 
        jurisdiction.
          (2) Victimized family.--
                  (A) In general.--The term ``victimized family'' means 
                a family or household that includes an individual who 
                has been determined under subparagraph (B) to have been 
                a victim of domestic violence, stalking, or adult or 
                child sexual assault, but does not include any 
                individual who committed the domestic violence, sexual 
                assault, or adult or child sexual assault. The term 
                includes any such family or household in which only a 
                minor or minors are the individual or individuals who 
                was or were a victim of domestic violence, stalking, or 
                sexual assault only if such family or household also 
                includes a parent, stepparent, legal guardian, or other 
                responsible caretaker for the child.
                  (B) Determination.--For purposes of subparagraph (A), 
                a determination under this subparagraph is a 
                determination that domestic violence, stalking, or 
                adult or child sexual assault has been committed, which 
                is made by any agency or official of a State, Indian 
                tribe, tribal organization, or unit of general local 
                government based upon any reliable evidence that 
                domestic violence, stalking, or adult or child sexual 
                assault has occurred. A victim's statement that 
                domestic violence, stalking, or adult or child sexual 
                assault has occurred shall be sufficient unless the 
                agency has an independent, reasonable basis to find the 
                individual not credible.
          (3) Indian tribe.--The term ``Indian Tribe'' shall have the 
        same meaning given the term in section 2003 of the Omnibus 
        Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796gg-
        2).
          (4) Qualified organization.--The term ``qualified 
        organization'' means a private, nongovernmental organization 
        that--
                  (A) is organized, or has as its primary purposes, to 
                provide emergency shelter, transitional housing, or 
                permanent housing for victims of domestic violence, 
                stalking, or adult or child sexual assault or is a 
                medical, legal, counseling, social, psychological, 
                health, job training, educational, life skills 
                development, or other social services program for 
                victims of domestic violence, stalking, or adult or 
                child sexual assault that undertakes a collaborative 
                project with a qualified, nonprofit, nongovernmental 
                organization that primarily provides emergency shelter, 
                transitional housing, or permanent housing for low-
                income people;
                  (B) is organized under State, tribal, or local laws;
                  (C) has no part of its net earnings inuring to the 
                benefit of any member, shareholder, founder, 
                contributor, or individual; and
                  (D) is approved by the Secretary as to financial 
                responsibility.
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
          (6) Sexual assault.--The term ``sexual assault'' means any 
        conduct proscribed by chapter 109A of title 18, United States 
        Code, whether or not the conduct occurs in the special maritime 
        and territorial jurisdiction of the United States, on an Indian 
        reservation, or in a Federal prison and includes both assaults 
        committed by offenders who are strangers to the victims and 
        assaults committed by offenders who are known to the victims or 
        related by blood or marriage to the victim.
          (7) Stalking.--The term ``stalking'' means engaging in a 
        course of conduct directed at a specific person that would 
        cause a reasonable person to fear death, sexual assault, or 
        bodily injury to himself or herself or a member of his or her 
        immediate family, when the person engaging in such conduct has 
        knowledge or should have knowledge that the specific person 
        will be placed in reasonable fear of death, sexual assault, or 
        bodily injury to himself or herself or a member of his or her 
        immediate family and when the conduct induces fear in the 
        specific person of death, sexual assault, or bodily injury to 
        himself or herself or a member of his or her immediate family.
          (8) State.--The term ``State'' means the States of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, Guam, 
        the Virgin Islands, American Samoa, and any other territory or 
        possession of the United States.
          (9) Transitional housing.--The term ``transitional housing'' 
        includes short-term housing and has the meaning given such term 
        in section 424(b) of the McKinney-Vento Homeless Assistance Act 
        (42 U.S.C. 11384(b)).
          (10) Tribal organization.--The term ``tribal organization'' 
        means a private, nonprofit, nongovernmental, or tribally 
        chartered organization--
                  (A) whose primary purpose is to provide emergency 
                shelter, transitional housing, or permanent housing or 
                supportive services to individuals or families 
                victimized by domestic violence, stalking, or adult or 
                child sexual assault;
                  (B) that operates within the exterior boundaries of 
                an Indian reservation; and
                  (C) whose board of directors reflects the population 
                served.
          (11) Unit of general local government.--The term ``unit of 
        general local government'' has the meaning given the term in 
        section 102(a) of the Housing and Community Development Act of 
        1974 (42 U.S.C. 5302(a)).

SEC. 608. NATIONAL GOAL OF ENDING HOMELESSNESS.

  (a) In General.--The McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11301 et seq.) is amended by inserting before title I the 
following new section:

``SECTION 1. NATIONAL GOAL OF ENDING HOMELESSNESS.

  ``The Congress hereby declares that it is a national goal to end 
homelessness within 10 years after the enactment of the Housing 
Affordability for America Act of 2002.''.
  (b) Amendment to Table of Contents.--The table of contents in section 
101(b) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 
note) is amended by inserting before the item relating to title I the 
following new item:

        ``Sec. 1. National goal of ending homelessness.''.

SEC. 609. CLERICAL AMENDMENTS.

  (a) Amendment to Subtitle Heading.--The heading for subtitle A of 
title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361 
et seq.) is amended to read as follows:

                  ``Subtitle A--General Provisions''.

  (b) Table of Contents.--The table of contents in section 101(b) of 
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 note) is 
amended--
          (1) by striking the item relating to subtitle A of title IV 
        and inserting the following new item:


                  ``Subtitle A--General Provisions'';

          (2) by inserting after the item relating to section 401 the 
        following new items:

``Sec. 402. Discharge coordination policy.
``Sec. 403. Set-aside for permanent housing.'';

        and
          (3) by striking the item relating to section 443 and 
        inserting the following new item:

``Sec. 443. Environmental review.''.

                   TITLE VII--NATIVE AMERICAN HOUSING

SEC. 701. REAUTHORIZATION OF NATIVE AMERICAN HOUSING AND SELF-
                    DETERMINATION ACT OF 1996.

  (a) Block Grant Assistance.--Section 108 of the Native American 
Housing and Self-Determination Act of 1996 (25 U.S.C. 4117) is amended 
to read as follows:

``SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated for grants under this title 
such sums as may be necessary for each of fiscal years 2003 and 
2004.''.
  (b) Guarantees for Tribal Housing Activities Loans.--
          (1) Aggregate fiscal year limitation.--Section 605(a) of the 
        Native American Housing and Self-Determination Act of 1996 (25 
        U.S.C. 4195(a)) is amended by striking ``1997, 1998, 1999, 
        2000, and 2001'' and inserting ``2003 and 2004''.
          (2) Authorization of appropriations for credit subsidy.--
        Section 605(b) of the Native American Housing and Self-
        Determination Act of 1996 (25 U.S.C. 4195(b)) is amended by 
        striking ``1997, 1998, 1999, 2000, and 2001'' and inserting 
        ``2003 and 2004''.
  (c) Training and Technical Assistance.--Section 703 of the Native 
American Housing and Self-Determination Act of 1996 (25 U.S.C. 4212) is 
amended by striking ``1997, 1998, 1999, 2000, and 2001'' and inserting 
``2003 and 2004''.

SEC. 702. COMPREHENSIVE PLANNING UNDER NATIVE AMERICAN HOUSING BLOCK 
                    GRANT PROGRAM.

  Section 101(h) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4111(h)) is amended--
          (1) by inserting after ``Act'' the first place such term 
        appears the following: ``for comprehensive housing and 
        community development planning activities and''; and
          (2) in the subsection heading, by inserting ``and Planning'' 
        after ``Administrative''.

SEC. 703. LANDS TITLE REPORT COMMISSION.

  (a) Establishment.--Section 501(a) of the American Homeownership and 
Economic Opportunity Act of 2000 (25 U.S.C. 4043 note) is amended by 
striking ``Subject to sums being provided in advance in appropriations 
Acts, there'' and inserting ``There''.
  (b) Appointment of Members.--Section 501(b)(1) of the American 
Homeownership and Economic Opportunity Act of 2000 (25 U.S.C. 4043 
note) is amended by striking ``this Act'' and inserting ``the American 
Indian Lands Title Report Commission Corrections Act''.
  (c) Initial Meeting.--Section 501(c) of the American Homeownership 
and Economic Opportunity Act of 2000 (25 U.S.C. 4043 note) is amended 
by striking ``the Chairperson of the Commission determines that sums 
sufficient for the Commission to carry out its duties under this Act 
have been appropriated for such purpose'' and inserting ``the 
completion of the appointment of the initial members pursuant to 
subsection (b)(1)''.

                  TITLE VIII--HOUSING IMPACT ANALYSIS

SEC. 801. APPLICABILITY.

  Except as provided in section 802, the requirements of this title 
shall apply with respect to--
          (1) any proposed rule, unless the agency promulgating the 
        rule--
                  (A) has certified that the proposed rule will not, if 
                given force or effect as a final rule, have a 
                significant deleterious impact on housing 
                affordability; and
                  (B) has caused such certification to be published in 
                the Federal Register at the time of publication of 
                general notice of proposed rulemaking for the rule, 
                together with a statement providing the factual basis 
                for the certification; and
          (2) any final rule, unless the agency promulgating the rule--
                  (A) has certified that the rule will not, if given 
                force or effect, have a significant deleterious impact 
                on housing affordability; and
                  (B) has caused such certification to be published in 
                the Federal Register at the time of publication of the 
                final rule, together with a statement providing the 
                factual basis for the certification.
Any agency making a certification under this section shall provide a 
copy of such certification and the statement providing the factual 
basis for the certification to the Secretary of Housing and Urban 
Development.

SEC. 802. EXCEPTION FOR CERTAIN BANKING RULES.

  The requirements of this title shall not apply to any proposed or 
final rule relating to--
          (1) the operations, safety, or soundness of--
                  (A) federally insured depository institutions or any 
                affiliate of such an institution (as such term is 
                defined in section 2(k) of the Bank Holding Company Act 
                of 1956 (12 U.S.C. 1841(k)));
                  (B) credit unions;
                  (C) the Federal home loan banks;
                  (D) the enterprises (as such term is defined in 
                section 1303 of the Housing and Community Development 
                Act of 1992 (12 U.S.C. 4502));
                  (E) a Farm Credit System institution; or
                  (F) foreign banks or their branches, agencies, 
                commercial lending companies, or representative offices 
                that operate in the United States, or any affiliate of 
                a foreign bank (as such terms are defined in section 1 
                of the International Banking Act of 1978 (12 U.S.C. 
                3101)); or
          (2) the payments system or the protection of deposit 
        insurance funds or the Farm Credit Insurance Fund.

SEC. 803. STATEMENT OF PROPOSED RULEMAKING.

  Whenever an agency publishes general notice of proposed rulemaking 
for any proposed rule, unless the agency has made a certification under 
section 801, the agency shall--
          (1) in the notice of proposed rulemaking--
                  (A) state with particularity the text of the proposed 
                rule; and
                  (B) request any interested persons to submit to the 
                agency any written analyses, data, views, and 
                arguments, and any specific alternatives to the 
                proposed rule;
          (2) provide an opportunity for interested persons to take the 
        actions specified under paragraph (1)(B) before promulgation of 
        the final rule; and
          (3) prepare and make available for public comment an initial 
        housing impact analysis in accordance with the requirements of 
        section 804.

SEC. 804. INITIAL HOUSING IMPACT ANALYSIS.

  (a) Requirements.--Each initial housing impact analysis shall 
describe the impact of the proposed rule on housing affordability. The 
initial housing impact analysis or a summary shall be published in the 
Federal Register at the same time as, and together with, the 
publication of general notice of proposed rulemaking for the rule. The 
agency shall transmit a copy of the initial housing impact analysis to 
the Secretary of Housing and Urban Development.
  (b) Contents.--Each initial housing impact analysis required under 
this section shall contain--
          (1) a description of the reasons why action by the agency is 
        being considered;
          (2) a succinct statement of the objectives of, and legal 
        basis for, the proposed rule;
          (3) a description of and, where feasible, an estimate of the 
        extent to which the proposed rule would increase the cost or 
        reduce the supply of housing or land for residential 
        development; and
          (4) an identification, to the extent practicable, of all 
        relevant Federal rules which may duplicate, overlap, or 
        conflict with the proposed rule.

SEC. 805. FINAL HOUSING IMPACT ANALYSIS.

  (a) Requirement.--Whenever an agency promulgates a final rule after 
publication of a general notice of proposed rulemaking, unless the 
agency has made the certification under section 801, the agency shall 
prepare a final housing impact analysis.
  (b) Contents.--Each final housing impact analysis shall contain--
          (1) a succinct statement of the need for, and objectives of, 
        the rule;
          (2) a summary of the significant issues, analyses, and 
        alternatives to the proposed rule raised during the public 
        comment period in response to the proposed rule and initial 
        housing impact analysis, a summary of the assessment of the 
        agency of such issues, analyses, and alternatives, and a 
        statement of any changes made in the proposed rule as a result 
        of such comments; and
          (3) a description of and an estimate of the extent to which 
        the rule will impact housing affordability or an explanation of 
        why no such estimate is available.
  (c) Availability.--The agency shall make copies of the final housing 
impact analysis available to members of the public and shall publish in 
the Federal Register such analysis or a summary thereof.

SEC. 806. AVOIDANCE OF DUPLICATIVE OR UNNECESSARY ANALYSES.

  (a) Duplication.--Any Federal agency may perform the analyses 
required by sections 804 and 805 in conjunction with or as a part of 
any other agenda or analysis required by any other law, executive 
order, directive, or rule if such other analysis satisfies the 
provisions of such sections.
  (b) Joinder.--In order to avoid duplicative action, an agency may 
consider a series of closely related rules as one rule for the purposes 
of sections 804 and 805.

SEC. 807. PREPARATION OF ANALYSES.

  In complying with the provisions of sections 804 and 805, an agency 
may provide either a quantifiable or numerical description of the 
effects of a proposed rule or alternatives to the proposed rule, or 
more general descriptive statements if quantification is not 
practicable or reliable.

SEC. 808. EFFECT ON OTHER LAW.

  The requirements of sections 804 and 805 do not alter in any manner 
standards otherwise applicable by law to agency action.

SEC. 809. PROCEDURE FOR WAIVER OR DELAY OF COMPLETION.

  (a) Initial Housing Impact Analysis.--An agency head may waive or 
delay the completion of some or all of the requirements of section 804 
by publishing in the Federal Register, not later than the date of 
publication of the final rule, a written finding, with reasons 
therefor, that the final rule is being promulgated in response to an 
emergency that makes compliance or timely compliance with the 
provisions of section 801 impracticable.
  (b) Final Housing Impact Analysis.--An agency head may not waive the 
requirements of section 805. An agency head may delay the completion of 
the requirements of section 805 for a period of not more than 180 days 
after the date of publication in the Federal Register of a final rule 
by publishing in the Federal Register, not later than such date of 
publication, a written finding, with reasons therefor, that the final 
rule is being promulgated in response to an emergency that makes timely 
compliance with the provisions of section 805 impracticable. If the 
agency has not prepared a final housing impact analysis pursuant to 
section 805 within 180 days from the date of publication of the final 
rule, such rule shall lapse and have no force or effect. Such rule 
shall not be repromulgated until a final housing impact analysis has 
been completed by the agency.

SEC. 810. DEFINITIONS.

  For purposes of this title, the following definitions shall apply:
          (1) Agency.--The term ``agency'' means each authority of the 
        Government of the United States, whether or not it is within or 
        subject to review by another agency, but does not include--
                  (A) the Congress;
                  (B) the courts of the United States;
                  (C) the governments of the territories or possessions 
                of the United States;
                  (D) the government of the District of Columbia;
                  (E) agencies composed of representatives of the 
                parties or of representatives of organizations of the 
                parties to the disputes determined by them;
                  (F) courts-martial and military commissions;
                  (G) military authority exercised in the field in time 
                of war or in occupied territory; or
                  (H) functions conferred by--
                          (i) sections 1738, 1739, 1743, and 1744 of 
                        title 12, United States Code;
                          (ii) chapter 2 of title 41, United States 
                        Code;
                          (iii) subchapter II of chapter 471 of title 
                        49, United States Code; or
                          (iv) sections 1884, 1891-1902, and former 
                        section 1641(b)(2), of title 50, appendix, 
                        United States Code.
          (2) Families.--The term ``families'' has the meaning given 
        such term in section 3 of the United States Housing Act of 
        1937.
          (3) Housing affordability.--The term ``housing 
        affordability'' means the quantity of housing that is 
        affordable to families having incomes that do not exceed 150 
        percent of the median income of families in the area in which 
        the housing is located, with adjustments for smaller and larger 
        families. For purposes of this paragraph, area, median family 
        income for an area, and adjustments for family size shall be 
        determined in the same manner as such factors are determined 
        for purposes of section 3(b)(2) of the United States Housing 
        Act of 1937.
          (4) Rule.--The term ``rule'' means any rule for which the 
        agency publishes a general notice of proposed rulemaking 
        pursuant to section 553(b) of title 5, United States Code, or 
        any other law, including any rule of general applicability 
        governing grants by an agency to State and local governments 
        for which the agency provides an opportunity for notice and 
        public comment; except that such term does not include a rule 
        of particular applicability relating to rates, wages, corporate 
        or financial structures or reorganizations thereof, prices, 
        facilities, appliances, services, or allowances therefor or to 
        valuations, costs or accounting, or practices relating to such 
        rates, wages, structures, prices, appliances, services, or 
        allowances.
          (5) Significant.--The term ``significant'' means increasing 
        consumers' cost of housing by more than $100,000,000 per year.

SEC. 811. DEVELOPMENT.

  Not later than 1 year after the date of the enactment of this Act, 
the Secretary of Housing and Urban Development shall develop model 
initial and final housing impact analyses under this title and shall 
cause such model analyses to be published in the Federal Register. The 
model analyses shall define the primary elements of a housing impact 
analysis to instruct other agencies on how to carry out and develop the 
analyses required under sections 804 and 805

SEC. 812. JUDICIAL REVIEW.

  (a) Determination by Agency.--Except as otherwise provided in 
subsection (b), any determination by an agency concerning the 
applicability of any of the provisions of this title to any action of 
the agency shall not be subject to judicial review.
  (b) Other Actions by Agency.--Any housing impact analysis prepared 
under section 804 or 805 and the compliance or noncompliance of the 
agency with the provisions of this title shall not be subject to 
judicial review. When an action for judicial review of a rule is 
instituted, any housing impact analysis for such rule shall constitute 
part of the whole record of agency action in connection with the 
review.
  (c) Exception.--Nothing in this section bars judicial review of any 
other impact statement or similar analysis required by any other law if 
judicial review of such statement or analysis is otherwise provided by 
law.

                    TITLE IX--OTHER HOUSING PROGRAMS

SEC. 901. GNMA GUARANTEE FEE.

  Section 972 of the Higher Education Amendments of 1998 (Public Law 
105-244; 112 Stat. 1837) is hereby repealed.

SEC. 902. HOUSING COUNSELING PROGRAMS.

  (a) Designation of Office Responsible for Housing Counseling 
Functions.--Section 4 of the Department of Housing and Urban 
Development Act (42 U.S.C. 3533) is amended by adding at the end the 
following new subsection:
  ``(g)(1) The Secretary shall designate a single office of the 
Department in existence on the date of the enactment of the Housing 
Affordability for America Act of 2002 to establish, coordinate, and 
administrate all individual program requirements, standards, and 
performance measures under programs and laws administered by the 
Department that relate to housing counseling, homeownership counseling, 
mortgage-related counseling, and rental housing counseling, including 
the requirements, standards, and performance measures relating to 
housing counseling pursuant to the provisions of law specified in 
paragraph (2). To the extent that the Secretary is authorized by law to 
provide housing counseling services, the Secretary, in such 
circumstances or under such programs as the Secretary considers 
appropriate, may authorize such office to provide such housing 
counseling services.
  ``(2) The provisions specified in this paragraph are as follows:
          ``(A) Section 105(a)(20) of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 42 5305(a)(20)).
          ``(B) In the United States Housing Act of 1937--
                  ``(i) section 9(e) (42 U.S.C. 1437g(e));
                  ``(ii) section 8(y)(1)(D) (42 U.S.C. 1437f(y)(1)(D));
                  ``(iii) section 18(a)(4)(D) (42 U.S.C. 
                1437p(a)(4)(D));
                  ``(iv) section 23(c)(4) (42 U.S.C. 1437u(c)(4));
                  ``(v) section 32(e)(4) (42 U.S.C. 1437z-4(e)(4));
                  ``(vi) section 33(d)(2)(B) (42 U.S.C. 1437z-
                5(d)(2)(B));
                  ``(vii) sections 302(b)(6) and 303(b)(7) (42 U.S.C. 
                1437aaa-1(b)(6), 1437aaa-2(b)(7)); and
                  ``(viii) section 304(c)(4) (42 U.S.C. 1437aaa-
                3(c)(4)).
          ``(C) Section 302(a)(4) of the American Homeownership and 
        Economic Opportunity Act of 2000 (42 U.S.C. 1437f note).
          ``(D) Sections 233(b)(2) and 258(b) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12773(b)(2), 
        12808(b)).
          ``(E) Sections 101(e) and 106 of the Housing and Urban 
        Development Act of 1968 (12 U.S.C. 1701w(e), 1701x).
          ``(F) Section 220(d)(2)(G) of the Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 
        4110(d)(2)(G)).
          ``(G) Sections 422(b)(6), 423(b)(7), 424(c)(4), 442(b)(6), 
        and 443(b)(6) of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 12872(b)(6), 12873(b)(7), 12874(c)(4), 
        12892(b)(6), and 12893(b)(6)).
          ``(H) Section 491(b)(1)(F)(iii) of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii)).
          ``(I) Sections 202(3) and 810(b)(2)(A) of the Native American 
        Housing and Self-Determination Act of 1996 (25 U.S.C. 4132(3), 
        4229(b)(2)(A)).
          ``(J) In the National Housing Act--
                  ``(i) in section 203 (12 U.S.C. 1709), the 
                penultimate undesignated paragraph of paragraph (2) of 
                subsection (b), subsection (c)(2)(A), and subsection 
                (r)(4);
                  ``(ii) subsections (a) and (c)(3) of section 237 (12 
                U.S.C. 1715z-2); and
                  ``(iii) subsections (d)(2)(B) and (m)(1) of section 
                255 (12 U.S.C. 1715z-20).
          ``(K) Section 502(h)(4)(B) of the Housing Act of 1949 (42 
        U.S.C. 1472(h)(4)(B)).
          ``(L) Section 508 of the Housing and Urban Development Act of 
        1970 (12 U.S.C. 1701z-7).''.
  (b) Report.--Not later than September 30, 2003, the Secretary of 
Housing and Urban Development shall submit a report to the Congress 
that--
          (1) identifies the programs administered by the Department of 
        Housing and Urban Development under which housing counseling is 
        required, assisted, or made available;
          (2) describes the counseling offered or provided under each 
        such program, including the provider of such counseling; and
          (3) specifies any amounts made available under law for 
        technical assistance or similar functions which are used to 
        provide housing counseling.

SEC. 903. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

  (a) Limitation on Eligible Expenses.--Section 11(d) of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended by adding at the end the following new paragraph:
          ``(3) Limitation on eligible expenses.--The amount from 
        grants under this section that is used for eligible expenses 
        (as such term is defined under paragraph (2)) in connection 
        with developing dwelling units described in paragraph (1) may 
        not exceed an average of $15,000 per dwelling unit developed by 
        the grantee organization or consortium, except that the 
        Secretary may increase such $15,000 amount for any particular 
        geographic region that the Secretary determines has elevated 
        costs of land acquisition or infrastructure improvement.''.
  (b) Extension of Period for Use of Grants.--Section 11 of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended--
          (1) in subsection (i)(5), by inserting before the semicolon 
        the following: ``, and except that the Secretary may extend 
        such period for any organization or consortia to not more than 
        48 months in any case in which the Secretary determines, in the 
        sole discretion of the Secretary, that extraordinary 
        circumstances (including a national emergency) warrant such 
        extension''; and
          (2) in subsection (j), by adding at the end the following: 
        ``The Secretary may extend the period otherwise applicable 
        under this subsection for any organization or consortia to not 
        more than 48 months in any case in which the Secretary 
        determines, in the sole discretion of the Secretary, that 
        extraordinary circumstances (including a national emergency) 
        warrant such extension.''.
  (c) Authorization of Appropriations.--Section 11(p) of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended by striking ``fiscal year 2001'' and inserting ``each of fiscal 
years 2003 and 2004''.

SEC. 904. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

  Section 863 of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12912) is amended to read as follows:

``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated for grants under sections 
860 and 861 such sums as may be necessary for each of fiscal years 2003 
and 2004.''.

SEC. 905. USE OF CDBG AMOUNTS FOR CONSTRUCTION OF TORNADO-SAFE SHELTER 
                    FOR MANUFACTURED HOUSING PARKS.

  (a) In General.--Section 105(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
          (1) in paragraph (22), by striking ``and'' at the end;
          (2) in paragraph (23), by striking the period at the end and 
        inserting a semicolon;
          (3) in paragraph (25), by striking the period at the end and 
        inserting a semicolon; and
          (4) by inserting at the end the following new paragraph:
          ``(26) the construction or improvement of tornado- or storm-
        safe shelters for manufactured housing parks and residents of 
        other manufactured housing, the acquisition of real property 
        for sites for such shelters, and the provision of assistance 
        (including loans and grants) to nonprofit or for-profit 
        entities (including owners of such parks) for such 
        construction, improvement, or acquisition, except that a 
        shelter assisted with amounts made available pursuant to this 
        paragraph shall be located in a neighborhood consisting 
        predominantly of persons of low and moderate income, except 
        that a shelter assisted with amounts made available pursuant to 
        this paragraph may not be made available exclusively for use of 
        the residents of a particular manufactured housing park or of 
        other manufactured housing, but shall generally serve the 
        residents of the area in which it is located; and''.
  (b) Authorization of Appropriations.--In addition to any amounts 
otherwise made available for grants under title I of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5301 et seq.), there are 
authorized to be appropriated such sums as may be necessary for each of 
fiscal years 2003 and 2004 for assistance only for activities pursuant 
to section 105(a)(24) of such Act.

SEC. 906. USE OF CDBG AMOUNTS TO ADMINISTER RENEWAL COMMUNITIES.

  Section 105(a)(13) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)(13)) is amended by inserting ``and renewal 
communities'' after ``enterprise zones''.

SEC. 907. SUBSIDY LAYERING REVIEW.

  Section 911 of the Housing and Community Development Act of 1992 (42 
U.S.C. 3545 note) is amended
          (1) in subsection (a)--
                  (A) by striking ``may'' and inserting ``shall''; and
                  (B) by striking ``, submitted in accordance with'' 
                and all that follows through the end of the subsection 
                and inserting the following: ``that it has made the 
                determination required by subsection (m)(2)(A) of such 
                section 42 upon the first occasion that such 
                determination was required and that it will make such 
                determination upon such additional occasions as are 
                required by law or regulation.'';
          (2) by striking subsections (b) and (c); and
          (3) by redesignating subsection (d) as subsection (b).

SEC. 908. STUDY OF COMMUNITY RENEWAL PROGRAM.

  (a) In General.--The Secretary of Housing and Urban Development shall 
conduct a study to analyze the extent to which use of 1990 census data 
for purposes of determining eligibility of areas for designation as 
renewal communities for purposes of the community renewal program under 
subchapter X of chapter 1 of Internal Revenue Code of 1986 (26 U.S.C. 
1400E et seq.), rather than data from the 2000 census, impairs the 
ability of communities to fully carry out the purposes of such program.
  (b) Report.--The Secretary of Housing and Urban Development shall 
submit a report to the Congress, not later September 30, 2004, setting 
forth the results of the study conducted pursuant to subsection (a).

SEC. 909. CORRECTION OF INEQUITIES IN THE SECOND ROUND OF EMPOWERMENT 
                    ZONES.

  (a) Grant Authority.--There are authorized to be appropriated to the 
Secretary of Housing and Urban Development such sums as may be 
necessary to make grant awards to each of 15 urban empowerment zones 
designated pursuant to section 1391(g) of the Internal Revenue Code of 
1986, taking into account any amount made available pursuant to any 
prior appropriation made for such zones.
  (b) Authority To Use Funds To Implement Strategic Plan.--Funds 
appropriated under Federal law for an empowerment zone referred to in 
subsection (a) may be used to implement the strategic plan for the 
zone, including--
          (1) economic development;
          (2) infrastructure development;
          (3) workforce development; and
          (4) community development activities.
  (c) Authority To Use Funds To Pay Non-Federal Share of Matching 
Grants.--Funds appropriated under any Federal law for an empowerment 
zone referred to in subsection (a) may be used to pay the non-Federal 
share required in connection with another Federal grant-in-aid program 
undertaken as part of activities assisted under this section.

SEC. 910. EMPLOYMENT OPPORTUNITIES IN PUBLIC AND INDIAN HOUSING 
                    AGENCIES.

  Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 
1701u) is amended--
          (1) by redesignating subsections (e), (f), and (g) as 
        subsections (f), (g) and (h), respectively;
          (2) in subsection (f), as so redesignated, by inserting after 
        paragraph (2) the following new paragraph:
          ``(3) One-stop delivery system.--The term `one-stop delivery 
        system' has the meaning given that term in section 134(c) of 
        the Workforce Investment Act of 1998 (29 U.S.C. 2864(c)).''; 
        and
          (3) by inserting after subsection (d) the following new 
        subsection:
  ``(e) Requirement for Hiring of New Employees.--
          ``(1) Thirty percent requirement.--It shall be a condition of 
        any contract awarded by a public or Indian housing agency for 
        work to be performed in connection with development assistance 
        provided from the Capital Fund under section 9(d) of the United 
        States Housing Act of 1937, or from the Operating Fund under 
        section 9(e) of such Act, that, except as provided in paragraph 
        2(B), a minimum of 30 percent of all new employees hired by a 
        contractor for work in connection with such contract will be 
        low- or very low-income persons.
          ``(2) Compliance.--As a condition of any contract awarded for 
        the work described in paragraph (1), any contractor awarded 
        such a contract shall--
                  ``(A)(i) immediately before beginning work under such 
                contract, submit evidence to the satisfaction of the 
                public or Indian housing agency showing that a minimum 
                of 30 percent of all new employees hired for work in 
                connection with such contract are low- or very low-
                income persons; and
                  ``(ii) submit evidence to the satisfaction of the 
                public or Indian housing agency showing that a minimum 
                of 30 percent of all subsequently hired new employees 
                hired for work in connection with such contract are 
                low- or very low-income persons; or
                  ``(B) if such contractor cannot meet the requirement 
                imposed by paragraph (1)--
                          ``(i) submit evidence to the satisfaction of 
                        the public or Indian housing agency showing 
                        that such contractor has given notice of such 
                        contract to the one-stop delivery system for 
                        the area which the housing subject to the 
                        contract is located, including the particular 
                        skills and qualifications needed by potential 
                        new employees for work under such contract; and
                          ``(ii) provide to the public or Indian 
                        housing agency evidence, as the Secretary shall 
                        by regulation require, sufficient to show that 
                        no newly hired employees who are not low- or 
                        very low-income persons are performing work in 
                        place of skilled low- or very low-income 
                        persons who were provided by either the public 
                        or Indian housing agency or by the one-stop 
                        delivery system.
          ``(3) Training.--Any contractor awarded a contract for the 
        work described in paragraph (1) may not provide on-the-job 
        training to any new employee for work under such contract 
        unless such new employee is a low- or very low-income 
        person.''.

SEC. 911. ASSISTANCE FOR NONPROFIT PURCHASERS PRESERVING AFFORDABLE 
                    HOUSING.

  (a) Grants.--The Secretary of Housing and Urban Development may make 
grants, to the extent amounts are made available for such grants, to 
eligible entities under subsection (b) for use only for operational, 
working capital, and organizational expenses of such entities and 
activities by such entities to acquire eligible affordable housing for 
the purpose of ensuring that the housing will remain affordable, as the 
Secretary considers appropriate, for low-income or very low-income 
families (including elderly persons).
  (b) Eligible Entities.--The Secretary shall establish standards for 
entities to be considered eligible entities for purposes of this 
section, which shall include requirements that an entity shall--
          (1) be a nonprofit organization (as such term is defined in 
        section 104 of the Cranston-Gonzalez National Affordable 
        Housing Act) that has a regional or national focus and has been 
        in existence at least 3 years;
          (2) have among its purposes maintaining the affordability to 
        low-income or very low-income families of multifamily 
        properties that are at risk of loss from the inventory of 
        housing that is affordable to low-income or very low-income 
        families;
          (3) demonstrate need for assistance under this section for 
        the purposes under subsection (a), experience in carrying out 
        activities referred to in such subsection, and capability to 
        carry out such activities; and
          (4) demonstrate financial resources, financial capability, 
        and organizational outreach to make best use of scarce Federal 
        resources by--
                  (A) levering effectively any funding under this 
                section with private-sector capital; and
                  (B) working in effective cooperation with other 
                similar organizations.
  (c) Definitions.--For purposes of this section:
          (1) Eligible affordable housing.--The term ``eligible 
        affordable housing'' means housing that--
                  (A) consists of more than 4 dwelling units;
                  (B) serves exclusively or predominantly a tenancy of 
                low-income families or very low-income families, or is 
                insured or assisted under a program of the Department 
                of Housing and Urban Development, the Department of 
                Agriculture, or applicable State housing finance agency 
                programs under which the property is subject to 
                limitations on tenant rents, rent contributions, or 
                incomes; and
                  (C) is at risk, as determined by the Secretary, of 
                having loss of affordability because of market rate 
                conversion, deterioration, or demolition.
          (2) Low-income families; very low-income families.--The terms 
        ``low-income families'' and ``very low-income families'' have 
        the meanings given such terms in section 3(b) of the United 
        States Housing Act of 1937.
  (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for grants under this 
section.

SEC. 912. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

  (a) Eligible Activities.--Section 105(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)), as amended by the 
preceding provisions of this Act, is further amended by adding at the 
end the following new paragraph:
          ``(27) provision of direct assistance to facilitate and 
        expand homeownership among uniformed employees (including 
        policemen, firemen, and sanitation and other maintenance 
        workers) of, and teachers who are employees of, the 
        metropolitan city or urban county (or an agency or school 
        district serving such city or county) receiving grant amounts 
        under this title pursuant to section 106(b) or the unit of 
        general local government (or an agency or school district 
        serving such unit) receiving such grant amounts pursuant to 
        section 106(d), except that--
                  ``(A) such assistance may only be provided on behalf 
                of such employees who are first-time homebuyers under 
                the meaning given such term in section 104(14) of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 12704(14)), except that, for purposes of this 
                paragraph, such section shall be applied by 
                substituting `section 105(a)(27) of the Housing and 
                Community Development Act of 1974' for `title II';
                  ``(B) notwithstanding section 102(a)(20)(B) or any 
                other provision of this title, such assistance may be 
                provided on behalf of such employees whose family 
                incomes do not exceed--
                          ``(i) 115 percent of the median income of the 
                        area involved, as determined by the Secretary 
                        with adjustments for smaller and larger 
                        families; or
                          ``(ii) with respect only to areas that the 
                        Secretary determines have high housing costs, 
                        taking into consideration median house prices 
                        and median family incomes for the area, 150 
                        percent of the median income of the area 
                        involved, as determined by the Secretary with 
                        adjustments for smaller and larger families;
                  ``(C) such assistance shall be used only for 
                acquiring principal residences for such employees, in a 
                manner that involves obligating amounts with respect to 
                any particular mortgage over a period of 1 year or 
                less, by--
                          ``(i) providing amounts for downpayments on 
                        mortgages;
                          ``(ii) paying reasonable closing costs 
                        normally associated with the purchase of a 
                        residence;
                          ``(iii) obtaining pre- or post-purchase 
                        counseling relating to the financial and other 
                        obligations of homeownership; or
                          ``(iv) subsidizing mortgage interest rates; 
                        and
                  ``(D) any residence purchased using assistance 
                provided under this paragraph shall be subject to 
                restrictions on resale that are--
                          ``(i) established by the metropolitan city, 
                        urban county, or unit of general local 
                        government providing such assistance; and
                          ``(ii) determined by the Secretary to be 
                        appropriate to comply with subparagraphs (A) 
                        and (B) of section 215(b)(3) of the Cranston-
                        Gonzalez National Affordable Housing Act (42 
                        U.S.C. 12745(b)(3)), except that, for purposes 
                        of this paragraph, such subparagraphs shall be 
                        applied by substituting `section 105(a)(27) of 
                        the Housing and Community Development Act of 
                        1974' for `this title';''.
  (b) Primary Objectives.--Section 105(c) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(c)) is amended by adding at the 
end the following new paragraph:
  ``(5) Homeownership Assistance for Municipal Employees.--
Notwithstanding any other provision of this title, any assisted 
activity described in subsection (a)(27) of this section shall be 
considered, for purposes of this title, to benefit persons of low and 
moderate income and to be directed toward the objective under section 
101(c)(3).''.

SEC. 913. SENSE OF CONGRESS REGARDING HUD OFFICE OF DISABILITY POLICY.

  (a) Congressional Findings.--The Congress finds that--
          (1) 54,000,000 Americans have disabilities;
          (2) 1,300,000 disabled Americans have worst-case housing 
        needs;
          (3) people with disabilities and their families face unique 
        challenges in securing adequate housing;
          (4) it is the policy of the United States, as enshrined in 
        the Fair Housing Act, the Rehabilitation Act of 1973 and the 
        Americans With Disabilities Act of 1990, and other Federal 
        laws, that the disabled have the same rights to housing as 
        other Americans;
          (5) people with disabilities represent an important 
        constituency of the Department of Housing and Urban Development 
        and rely heavily on many of the Department's programs for their 
        housing needs;
          (6) people with disabilities need a single, one-stop source 
        for help with their housing needs;
          (7) people with disabilities need an advocate within HUD;
          (8) HUD has designated a Deputy Assistant Secretary for 
        Special Needs whose responsibilities includes many populations 
        with housing challenges, but people with disabilities are not 
        specifically cited as among those responsibilities;
          (9) HUD has, in the past, established special resource 
        offices, such as the Veteran Resource Center (HUDVET), to 
        provide information on HUD's community-based programs and 
        services to specific HUD constituents and their families;
          (10) people with disabilities are overlooked in much of HUD's 
        administrative structure and ought to receive as much attention 
        from the Federal Government's housing agency as other groups 
        with critical housing needs; and
          (11) HUD currently has an Office of Disability Policy, but 
        there has not been a Director of that Office since January 
        2001.
  (b) Sense of Congress.--It is the sense of the Congress that the 
Secretary of Housing and Urban Development should--
          (1) immediately appoint a permanent Director of the Office of 
        Disability Policy;
          (2) examine the role of the Department's Office of Disability 
        Policy, its relationship to the Office of Special Needs, and 
        whether and what changes might be made to increase attention to 
        people with disabilities within the Department's programs and 
        policies; and
          (3) establish a resource center for people with disabilities 
        and their families within the Office of Disability Policy to 
        serve as a portal into the Department's community-based 
        programs and services.

SEC. 914. TRANSFER OF RURAL MULTIFAMILY RENTAL HOUSING PROJECTS TO 
                    NONPROFITS AND LOCAL HOUSING AUTHORITIES.

  Section 515(h) of the Housing Act of 1949 (42 U.S.C. 1485(h)) is 
amended--
          (1) by striking ``(h) Project Transfers.--After'' and 
        inserting the following:
  ``(h) Project Transfers.--
          ``(1) Limitation.--After''; and
          (2) by inserting at the end the following new paragraph:
          ``(2) Transfer and renovation of existing projects.--
                  ``(A) Transfer.--In carrying out this Act, the 
                Secretary should encourage the transfer of ownership or 
                control of projects for which a loan is made or insured 
                under this section to nonprofit organizations and local 
                housing authorities (including public housing 
                agencies).
                  ``(B) Renovation.--In carrying out this Act, the 
                Secretary should encourage, and give priority in 
                funding, to the renovation of existing projects for 
                which a loan is made or insured under this section, 
                subsequent to transfer of such projects to nonprofit 
                organizations and housing authorities.''.

SEC. 915. SENSE OF CONGRESS REGARDING CONSUMER PROTECTION AND HOME 
                    WARRANTIES.

  (a) Congressional Findings.--The Congress finds that--
          (1) 30,000 newly constructed homes were insured under the 
        National Housing Act in 2000 and a majority of those homes were 
        purchased by first-time low- and moderate-income homebuyers;
          (2) approximately 90 percent of those homes are now protected 
        by private sector insurance-backed warranties against 
        structural damage for ten years, and an estimated 77 percent of 
        structural damage takes place when a home is four years or 
        older, with an average cost of $30,000 per incident of major 
        structural damage;
          (3) Mortgagee Letter 2001-27, issued by the Department of 
        Housing and Urban Development in October 2001 will have the 
        effect of discouraging the use of ten-year insurance-backed 
        warranties, leaving homeowners with a one-year builder warranty 
        to protect the value of the home; and
          (4) major structural damage to a home will lead to homeowner 
        defaults and, for homes with mortgages insured under the 
        National Housing Act, the Secretary of Housing and Urban 
        Development is liable for 100 percent of the unpaid balance of 
        a mortgage when a homeowner defaults.
  (b) Sense of Congress.--It is the sense of the Congress that the 
Secretary of Housing and Urban Development should implement a program 
to provide incentives to homebuilders to offer ten-year insurance-
backed private sector warranties for newly constructed homes purchased 
with mortgages insured under the National Housing Act.

SEC. 916. DEMONSTRATION PROGRAM FOR AFFORDABLE HOUSING DATABASE.

  (a) In General.--The Secretary of Housing and Urban Development shall 
carry out a demonstration program to allow the development and creation 
of an electronic or otherwise readily available database that provides 
agencies, municipalities, and the general public access to information 
about available affordable housing and programs that pertain to the 
affordable housing continuum. The database shall include regularly 
updated lists of rental units that accept rental assistance vouchers 
under the program under section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f) and shall contain information about the location 
of the rental units, the number of units of each bedroom size, and the 
accessibility of the units to public transportation.
  (b) Selection.--The Secretary of Housing and Urban Development shall 
establish the criteria for participation in the demonstration program 
under this section and, during the period consisting of fiscal years 
2003 through 2004 shall, to the extent amounts are made available under 
subsection (d), select not more than three applicants for participation 
in this program.
  (c) Report.--Not later than February 1, 2005, the Secretary of 
Housing and Urban Development shall submit a report to the Congress 
describing the results of the demonstration program under this section, 
analyzing the effectiveness of the program, and including 
recommendations, if any, for continuation or replication.
  (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for the demonstration 
program under this section.

SEC. 917. HUD STUDY REGARDING MAIN STREET PARTNERSHIP.

  (a) In General.--The Secretary of Housing and Urban Development shall 
conduct a study to determine--
          (1) the feasibility and effectiveness of establishing a 
        Federal Main Street Partnership Fund to make grants to local 
        communities to assist in making fast-track changes to zoning 
        and planning regulations that may inhibit the revitalization of 
        downtown commercial areas for mixed-use affordable housing as 
        well as commercial uses;
          (2) the extent to which local zoning and planning regulations 
        inhibit the ability of developers to create affordable housing 
        in traditional Main Street commercial districts where 
        commercially zoned buildings have vacant and serviceable 
        housing which cannot be used for housing due to such zoning;
          (3) whether fast-tracking zoning modifications and other 
        related incentives would reduce the costs of redeveloping 
        commercial buildings in traditional Main Street commercial 
        districts for mixed-use affordable housing as well as 
        commercial and retail uses; and
          (4) what eligible planning activities should receive funding 
        under such a Federal Main Street Partnership Fund, such as 
        salary of staff involved in fast-track re-zoning and surveying 
        and mapping involved in the rezoning.
  (b) Working Group.--In conducting the study, the Secretary shall 
convene a working group and shall solicit views and recommendations 
from the members of the group. The group shall include representatives 
of local governments of varying sizes in various regions, developers, 
realtors, mortgage bankers, community bankers, local non-profit 
business membership organizations, such as Chambers of Commerce, 
community-based affordable housing advocacy organizations, and such 
other parties as the Secretary considers appropriate.
  (c) Report.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary shall submit a report regarding the findings 
of the study, which shall include recommendations regarding the 
establishment of a Federal Main Street Partnership Fund, to the 
Committee on Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate.

SEC. 918. CONTRACTUAL COMMITMENTS FOR RURAL MULTIFAMILY RENTAL HOUSING.

  (a) Prepayment.--Notwithstanding any other provision of law and 
subject only to subsection (d) of this section, an owner of eligible 
low-income rural housing may prepay the loan on such housing made or 
insured under section 514 or 515 of the Housing Act of 1949 without 
restrictions at any time after the later of--
          (1) 20 years from the date on which the loan was made; and
          (2) the date until which the owner has agreed with the 
        Secretary of Agriculture, or the Secretary's delegee, to 
        maintain the low-income use of the housing.
  (b) Eligible Low-Income Rural Housing.--For purposes of this section, 
the term ``eligible low-income rural housing'' means housing that is 
financed by a loan made or insured under section 514 or 515 of the 
Housing Act of 1949 (42 U.S.C. 1484, 1485) pursuant to a contract 
entered into prior to December 15, 1989.
  (c) Tenant Protection.--
          (1) Provision of enhanced voucher assistance.--To the extent 
        that amounts for assistance pursuant to this subsection are 
        provided in advance in appropriation Acts, upon the prepayment 
        of a loan pursuant to this section, enhanced voucher assistance 
        under section 8(t) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(t)) shall be made available on behalf of each low-
        income family who is residing in the project on the date the 
        loan is prepaid.
          (2) Ensuring ability to use enhanced voucher assistance.--
        Each low-income family residing in the project on the date the 
        loan is prepaid may elect to remain in the same project, 
        subject to the terms of the lease for rental of the dwelling 
        unit, and may use such enhanced voucher assistance for lease of 
        such dwelling unit. The owner of the project may not refuse to 
        accept enhanced voucher assistance made available on behalf of 
        any such low-income family for lease of such a dwelling unit or 
        to enter into a housing assistance payments contract for such a 
        unit.
  (d) Tenant Protection and Notice Requirements.--An owner of eligible 
low-income rural housing may not, pursuant to subsection (a), prepay 
the loan on such housing made or insured under section 514 or 515 of 
the Housing Act of 1949 unless--
          (1) amounts are provided in advance in appropriation Acts, 
        and are obligated, for assistance pursuant to subsection (c) of 
        this section on behalf of each low-income family who is 
        residing in the project on the date that the loan is prepaid; 
        and
          (2) not less than 150 days before such prepayment, the owner 
        of the project provides written notice of intent to prepay, in 
        such form as the Secretary of Agriculture shall prescribe, to 
        each tenant of the housing, the Secretary of Agriculture, the 
        Secretary of Housing and Urban Development, and the chief 
        executive officer of the appropriate State or local government 
        for the jurisdiction within which the housing is located.
  (e) Conforming Amendment.--Section 8(t)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(t)(2)) is amended--
          (1) by inserting ``or loan'' after ``the prepayment of the 
        mortgage''; and
          (2) by inserting ``section 914 of the Housing Affordability 
        for America Act of 2002,'' after ``(12 U.S.C. 4113(f)),''.

                          Purpose and Summary

    H.R. 3995, the Housing Affordability for America Act, will 
increase the availability of affordable housing and expand 
homeownership opportunities across the United States. This 
legislation reforms current housing programs recognizing the 
importance of homeownership as an opportunity to allow families 
to acquire and build wealth. Concurrently, H.R. 3995 recognizes 
that affordable rental housing is the first step in a process 
of moving working families to homeownership, strengthening 
communities, and improving quality of life.

                  Background and Need for Legislation

    Housing is the number one consumer product in America. 
While the homeownership rate stands at an impressive 68 
percent, there are still some that are unable to share in that 
dream. With this bill, Congress has an opportunity to meet the 
housing needs of even more Americans.
    In addition to addressing this country's critical housing 
needs, this bill will have the added benefit of providing 
additional stimulus to a recovering economy. The recession hit 
almost every industry hard--except for housing. In fact, the 
robust housing market was more than likely responsible for 
reducing the impact of the recession.
    The Subcommittee on Housing and Community Opportunity held 
13 hearings during the 107th Congress to explore housing issues 
including affordability and availability. In those hearings, 
the Committee heard from community activists, housing experts, 
local and Federal government officials and representatives from 
the home building, real estate and mortgage industries 
regarding the obstacles to home ownership and affordable rental 
housing across the country. H.R. 3995 is a product of those 
hearings.
    According to the Joint Center for Housing Studies of 
Harvard University's 2001 annual report entitled ``The State of 
the Nation's Housing'', more than 14 million Americans have 
critical housing needs, meaning that they spend more than half 
of their income on housing or live in substandard housing. 
Moreover, given the law of supply and demand, less supply means 
higher home sales prices as well as higher rental costs. 
Therefore, working families, such as public safety officers, 
tradesmen, or teachers, find it increasingly difficult to 
purchase or rent housing near the places they work.
    In the case of the working poor, elderly and disabled, the 
existing Federal rental assistance program provides tenant-
based vouchers for use in the private sector. Under the best 
scenario, a voucher recipient could easily use a Federal rental 
voucher to select housing that best suits their family needs, 
including proximity to work, child care, educational 
facilities, and transportation centers. Under the worst 
scenario, a working family has a voucher they are unable to use 
because their community is either a high cost area or lacks 
available rental units. The Housing Subcommittee hearings 
revealed that the latter was more of the rule than the 
exception.
    In every aspect of housing, whether it be housing for 
elderly, disabled, low and moderate-income families, one thing 
was clear: new production of affordable single and multifamily 
housing is essential. Home ownership and affordable rental 
opportunities are the primary ingredients to the country's 
mission of strengthening and building safe communities. 
Congress must continue to seek ways to remove the barriers that 
prevent certain segments of the population from realizing the 
American dream of homeownership. One way to do that is to 
provide opportunities that allow families to acquire and build 
wealth toward the goal of homeownership.
    There was considerable debate in Committee on how best to 
address the need for new production of affordable housing. H.R. 
3995, as introduced, created a separate production/
rehabilitation/preservation program within the existing HOME 
program targeted toward very low and extremely low income 
families. An alternative proposal to create a national housing 
trust fund was at the center of the debate.
    In the end, the Committee approved a compromise proposal 
that would provide matching money for States and localities 
that already have their own trust funds for affordable housing. 
Of the total money available for matching funds, 40 percent 
would go to participating States and 60 percent to 
participating jurisdictions. These grants would be administered 
through the HOME investment partnership program. States and 
localities would be required to use these grants for the 
production, preservation or rehabilitation of affordable 
housing for very low and extremely low-income families. This 
bill does not preclude States and localities from creating new 
trust funds. In fact, it will act as an incentive for them to 
create their own trust funds so that they can have access to 
the funds. This grant program is to be funded through new 
appropriations and not taken out of the existing HOME 
appropriations. Rather than creating a new Federal housing 
trust fund, this money would go directly to State and local 
jurisdictions with existing trust funds. Clearly, States and 
localities are better equipped to know how best to meet the 
housing needs of their communities.
    In addition to increasing production, preservation and 
rehabilitation capabilities, Federal Housing Programs must also 
provide State and local government, housing authorities and 
community development organizations with more flexibility to 
administer the Federal housing programs so they can better meet 
the needs of their communities. With that in mind, H.R. 3995 
makes changes to many of the programs under HUD's jurisdiction.
    To improve the efficiency and effectiveness of the HOME 
program, H.R. 3995 makes changes to the HOME program. HOME is 
the largest Federal block grant to State and local governments 
designed exclusively to create affordable housing for low-
income households. Each year it allocates more than $1.5 
billion among the States and hundreds of localities nationwide. 
Through the formation of private public partnerships, HOME is 
meeting the critical needs of affordable housing. It is 
estimated that each HOME dollar generates or leverages about $4 
in additional private-sector investment.
    H.R. 3995 seeks to provide new and more efficient ways to 
assist first-time homebuyers. Often the biggest obstacle for 
first-time homebuyers is the downpayment. This bill includes 
the President's new initiative, the American Dream Downpayment 
Fund. This fund is designed to help first-time low-income 
homebuyers, who often struggle to meet downpayment and closing 
costs.
    The Committee is concerned that, when establishing a 
downpayment assistance allocation formula pursuant to the 
American Dream Downpayment program, the HUD Secretary will base 
a participating jurisdiction's prior commitment to homebuyers 
solely on that jurisdiction's use of HOME Investment 
Partnerships program funds for homebuyer activities. HOME 
program funds committed to homebuyer activities may not 
accurately reflect a jurisdiction's total commitment to 
homebuyer activities, as there are other Federal, State, and 
local resources that jurisdictions use for such activities.
    Further, the Committee believes that a formula based solely 
on a jurisdiction's use of HOME funds for homebuyer activities 
is contrary to Congress' intent that participating 
jurisdictions have discretion in how to use HOME funds to meet 
locally determined housing needs. To the extent a formula bases 
future down payment assistance allocations on future HOME 
spending on homebuyer activities, that formula may unduly 
interfere with the flexible nature of the HOME program, which 
has been its greatest strength. The Committee intends to reward 
jurisdictions that support homeownership.
    The Committee will work with the Administration to resolve 
any issues that may have an unintended impact on cities and 
State's flexibility to use HOME funds and provide downpayment 
assistance. Finally, the Committee intends for the American 
Dream Downpayment Fund to receive new appropriations and not to 
be funded with appropriations from the existing HOME program.
    H.R. 3995 also makes changes to the existing Federal 
Housing Administration (FHA) program. The FHA is one of the 
most effective programs in helping low-income buyers purchase 
their first home. It was originally designed to encourage 
lenders to make credit more readily available and at lower 
rates. Through the FHA program, HUD insures mortgages and loans 
made by HUD-approved lenders for a wide variety of purposes, 
including new construction, rehabilitation, property 
improvement, and refinancing in connection with a wide variety 
of types of property. FHA programs include all types of 
residential property (multifamily, single family, manufactured 
homes), nonresidential commercial property, hospitals and 
certain other healthcare facilities.
    In the FHA Multifamily Housing program, H.R. 3995 indexes 
FHA mortgage limits to the annual construction cost indexes of 
the Bureau of the Census of the Department of Commerce which 
reflect building, land, and impact fee cost increases in the 
future. The FY 2002 HUD-VA Appropriations Act provided for a 25 
percent increase of the multifamily loan limits, the first such 
increase in approximately 8 years. The 25 percent increase in 
the loan limits reflects the increases in construction costs 
over the last ten years. The indexing will address future cost 
increases in a manner that keeps the index current and relevant 
to existing multi family housing costs. In addition, the bill 
increases the maximum high-cost percentage from 110 percent to 
140 percent and provides discretion to the Secretary of HUD to 
increase the 140 percent to 170 percent on a case by case basis 
to allow for production in extremely expensive markets.
    This bill includes provisions to modernize the thirty-year 
old healthcare mortgage insurance programs of sections 232 and 
242 of the National Housing Act to make them more consistent 
with today's method of delivering healthcare and assisted 
living services for the elderly, sick, injured, and disabled.
    In the FHA Single Family Housing program, H.R. 3995 makes 
permanent the FHA downpayment simplification calculation. 
Currently, this program is scheduled to terminate on December 
31, 2002. This calculation simplifies the process of buying a 
home by making it easier to understand.
    The bill authorizes low down payment FHA mortgages for 
teachers, police, and firefighters buying a home in their local 
school district or employing jurisdiction. This will make it 
easier for these public servants to live in the area in which 
they serve. The bill also increases the flexibility of the cap 
on FHA adjustable-rate mortgages and establishes a uniform 
national loan limit for home equity conversion mortgages 
(HECM). Currently, HECM loans are subject to the county-by-
county FHA loan limits for traditional mortgages. Seniors 
living in low-cost areas could be subject to disparate 
treatment. For example, a senior living in Des Moines with a 
home worth $175,000 can get an FHA reverse mortgage for only 
$144,336, which is the FHA mortgage limit in Des Moines. 
However, a senior living in Los Angeles with a home worth the 
same amount can get a reverse mortgage for the full $175,000 
because the FHA mortgage limit in Los Angeles is $237,500. 
Setting a uniform loan limit for reverse mortgages will provide 
seniors a way to stay in their homes but can no longer afford 
the expenses associated with owning a home. Finally, H.R. 3995 
makes changes to the FHA program to tighten requirement and 
administration of the 203(k) FHA program.
    Further compounding the Nation's critical housing needs is 
the growing numbers of seniors who are suffering from worst 
case housing needs. There are over 34 million Americans aged 65 
years and older. By the year 2025, that number will increase to 
62 million, or one in every six Americans. From 1991 to 1997, 
the number of senior low-income renters paying more than 50 
percent of income toward rent rose 8 percent; at the same time, 
the number of senior low-income households receiving public 
rental assistance dropped 13 percent. These factors could 
combine to create a crisis-level lack of affordable housing for 
senior citizens within the next decade.
    On July 17, 2001, the Housing and Community Opportunity 
Subcommittee heard testimony from a variety of experts 
regarding the difficult problems that elderly face not only in 
finding suitable, affordable housing, but also coordinating 
with the services that are urgently needed by the elderly. It 
is widely understood that it is more cost effective to provide 
services such as meals, transportation, personal care and 
health care to the elderly in their homes rather than moving 
them into costly nursing facilities. How best to accomplish 
that goal is unclear. In addition, much of our elderly stock is 
in need of repair, retrofitting or renovation. H.R. 3995 
establishes a demonstration program for elderly housing for 
multigenerational families and for grandparent-headed 
households. The bill makes this an eligible activity but does 
not expect new appropriations specifically for this purpose. It 
also authorizes grants for the repair of Federally assisted 
housing for the elderly.
    During consideration of H.R. 3995, there was considerable 
discussion regarding the section 811 disabled housing tenant-
based rental assistance program. The Committee recognizes that 
the program guidance policies for this program have not been 
fully developed. The Committee, therefore, strongly encourages 
HUD to develop program guidance and policies for the section 
811 tenant-based rental assistance program to ensure that it 
expands supportive housing for people with severe disabilities 
most in need, promotes participation by non-profit disability 
organizations with the capacity to develop supportive housing, 
and allows for flexible use of section 811 funds for project-
based and sponsor-based rental assistance as well as tenant-
based assistance, when appropriate, to meet the supportive 
housing needs of people with disabilities. Additionally, the 
Committee plans to work with the Administration to develop a 
plan for ensuring long-term renewal of Section 811 tenant-based 
rental assistance where necessary.
    To better meet the housing needs of low-income families, 
States, Public Housing Authorities (PHAs) and tenants need 
greater flexibility within the section 8 Rental Housing Program 
and public housing programs. H.R. 3995 includes provisions to 
increases payment standards and to allow Public Housing 
Authorities to use up to 2 percent of funds for finding housing 
for ``hard to house'' families. In addition, H.R. 3995 includes 
several administrative changes to the public housing programs 
designed to improve the efficiency and success of public 
housing authorities (PHAs).
    The committee recognizes that there may be disparities 
between large and small PHAs. For this reason, the Committee 
temporarily suspended planning requirements for small PHAs. 
Small PHAs are defined as those that administer 100 or fewer 
public housing dwellings. In the Committee hearings, concerns 
were raised regarding the impact this provision would have on 
tenant participation. It is not the intention of this Committee 
to limit tenant participation or interaction between tenant 
organizations and PHAs. Rather, it is the expectation of the 
Committee that PHAs will continue the practice of interacting 
with duly elected tenant and resident organizations and will 
provide reasonable resources where appropriate. Additionally, 
under the existing plan requirements, PHAs are required to make 
available for public review documents that support their 
policies. This does not mean that PHAs must develop material 
from scratch just for the purpose of public review. Instead, 
these are documents that they must develop independent of 
annual plans to help develop policy. The documents include a 
PHA's most recently approved operating budget. Having access to 
this information helps resident groups to make informed 
decisions about policy ideas.
    Through its hearings, the Committee examined many of HUD's 
programs designed to promote public private partnerships, such 
as HOPE VI, Community Development Block Grants (CDBG), 
Empowerment Zones, and Renewal Communities. These programs 
represent some of the most cost-effective ways to meet our 
growing housing needs. With that in mind, H.R. 3995 makes 
changes in each one of these programs to make them more 
flexible, efficient and cost effective.
    The HOPE VI program is a good example of a public private 
partnership that has done much to revitalize many of the 
Nation's severely distressed public housing developments. This 
program provides incentives for PHAs and private entities to 
form partnerships and create mixed-finance and mixed-income 
affordable housing. This housing is developed and operated very 
differently from traditional public housing. The activities 
permitted under HOPE VI include, but are not limited to: the 
capital cost of demolition, major reconstruction, 
rehabilitation and other physical improvements. H.R. 3995 
reauthorizes and reforms the HOPE VI program to allow smaller 
communities to participate in the program and to make sure that 
recipients use the money in a timely and cost-effect manner.
    Regarding homelessness, H.R. 3995 reauthorizes HUD's 
homeless programs through FY 2004 and funds renewals of 
contracts through the Housing Certificate Fund, for one year at 
a time, through 2004. In addition, the legislation sets a 
national goal to end homelessness within 10 years which is 
consistent with the President's statements and goals.
    HOPWA (Housing Opportunities for Persons with AIDS) is a 
housing program designed specifically to assist individuals 
diagnosed with HIV/AIDs and their families. H.R. 3995 
reauthorizes HOPWA through 2004. Pursuant to the debate during 
consideration of H.R. 3995, the Committee intends to hold 
additional hearings on HOPWA and may ask General Accounting 
Office (GAO) to conduct a report.
    The Native American Housing Assistance and Self-
Determination Act of 1996 (NAHASDA) expires on September 30, 
2001. NAHASDA authorized Indian Housing Block Grant programs 
(IHBG), which were established to provide housing assistance 
under a single block grant to eligible Indian Tribes or their 
tribally designated housing entities (TDHEs). Eligible tribes 
include both Federally recognized and, to a limited degree, 
certain State-recognized Indian tribes formerly eligible under 
the 1937 Act. The allocation is made under a needs-based 
formula. The tribe must submit for HUD review and approval both 
a one-year and a five-year Indian Housing plan containing 
goals, mission, and methodology by which the recipient will 
accomplish its objective during the grant period. The Tribal 
Housing Activities Guarantees can be used to finance eligibly 
affordable housing activities under the IHBG program. H.R. 3995 
reauthorizes the IHBG, the Guarantees for Tribal Housing 
Activities; and Training and Technical Assistance.
    Needless regulation adds to the cost of housing. Currently, 
Federal agencies are required to conduct certain economic 
analyses when promulgating new rules. However, there is no such 
requirement that any analysis be done for a rule's impact on 
housing affordability. Title VIII is designed to heighten 
public awareness of the costs to housing affordability of 
certain regulations when there is a significant adverse impact 
on housing affordability. By reducing the cost of regulation, 
the cost of homeownership can be lowered. That is why H.R. 3995 
requires a housing impact analysis of any new rule of a Federal 
agency that has an economic impact of $100,000,000 or more.
    It is time for Congress to restore confidence and 
accountability to our nation's housing programs and policies. 
This legislation will go a long way toward reaching that goal.

                                Hearings

    The Subcommittee on Housing and Community Opportunity held 
a hearing on April 10, 23, and 24, 2002 on H.R. 3995, the 
Housing Affordability for America Act of 2002. The following 
witnesses testified on day 1 of the hearing: The Honorable 
Bernard Sanders, M.C.; The Honorable Barbara Lee, M.C.; Mr. 
Javier Gonzales, Commissioner, Santa Fe County, New Mexico, 
appearing on behalf of the National Association of Counties, 
National Community Development Association, National 
Association for County Community and Economic Development, and 
National Association of Local Housing Finance Agencies; Ms. 
Mary E. Brooks, Housing Trust Fund Project/Center for Community 
Change; Mr. William Faith, Coalition on Housing and 
Homelessness in Ohio, appearing on behalf of the National Low 
Income Housing Coalition; Ms. Katherine (Kit) G. Hadley, 
Commissioner, Minnesota Housing Finance Agency, appearing on 
behalf of National Council of Housing Finance Agencies; Ms. 
Catherine Racer, Associate Director, Massachusetts Department 
of Housing and Community Development on behalf of the Council 
of State Community Development Agencies; Ms. Barbara Sard, 
Director of Housing Policy, Center on Budget and Policy 
Priorities; Mr. Benson Roberts, Local Initiatives Support 
Corporation; Mr. Robert Lawson, appearing on behalf of the 
National Association of Homebuilders; and Mr. Rodrigo Lopez, 
President, AmeriSphere Multifamily Finance, L.L.C., Omaha, NE 
and Vice-Chair of the Legislative Steering Committee of the 
Mortgage Banking Association.
    The following witnesses testified on day 2 of the hearing: 
Ms. Telissa Dowling, President of the Resident Advisory Board, 
New Jersey Department of Community Affairs on behalf of the 
National Low Income Housing Coalition; Ms. Joan Walker Frasier, 
President of the Atlantic City Residents Advisory Board, 
Atlantic City, New Jersey on behalf of Ed Williams, President 
of ENPHRONT (formerly Public Housing Residents National 
Organizing Campaign); Mr. Kevin E. Marchman, Executive 
Director, National Organization of African Americans in 
Housing, Washington, D.C.; Ms. Terri Hamilton Brown, Executive 
Director, Cuyahoga Metropolitan Housing Authority, Cleveland, 
Ohio; Mr. Hans Dekker, Baton Rouge Area Foundation, Baton 
Rouge, Louisiana; Mr. Harry A. Byrd, Jr., Principal, The Harkin 
Group, LLC, Huntersville, N.C.; Mr. Thomas Slemmer, President 
and CEO, National Church Residences, Columbus, Ohio on behalf 
of American Association of Homes and Services for the Aging; 
Mr. Andrew Sperling, Deputy Executive Director, National 
Alliance for the Mentally Ill, Arlington, VA and the Consortium 
for Citizens with Disabilities Housing Task Force; Ms. Maureen 
Friar, Executive Director, Supportive Housing Network of New 
York, in her capacity as Advisory Committee Member of the 
National Alliance to End Homelessness, Washington, D.C.; Mr. 
Roy Ziegler, former Director of New Jersey Department of 
Community Affairs, Section 8, on behalf of National Leased 
Housing Association, Washington, D.C.; and Mr. Gary Eisenman, 
Executive Vice President of Related Capital Company, on behalf 
of the National Multi-Housing Council, Washington, D.C.
    The following witnesses testified on day 3 of the hearing: 
The Honorable John C. Weicher, Assistant Secretary for Housing, 
Federal Housing Commissioner, Department of Housing and Urban 
Development; The Honorable Roy Bernardi, Assistant Secretary 
for Community Planning and Development, Department of Housing 
and Urban Development; The Honorable Michael Liu, Assistant 
Secretary for Public and Indian Housing, Department of Housing 
and Urban Development; Mr. Thomas J. McCool, Managing Director, 
Financial Markets and Community Investment, General Accounting 
Office; Mr. John Courson, President, Central Pacific Mortgage 
Company on behalf of the Mortgage Bankers Association of 
America; Mr. Martin Edwards, Jr., President, National 
Awssociation of Realtors; Mr. Kevin P. Kelly, Weiner & 
Associates, Wilmington, Delaware on behalf of the National 
Association of Home Builders; Mr. Edward L. Shapoff, Vice 
President, Goldman, Sachs & Co. on behalf of the Healthcare 
Financing Study Group; and Mr. Louis P. Cannon, President, 
Fraternal Order of Police, District of Columbia State Lodge.
    The Subcommittee also held 13 other oversight hearings used 
in the development of provisions of this legislation.

                        Committee Consideration

    The Subcommittee on Housing and Community Opportunity met 
in open session on June 18, 2002 and approved H.R. 3995 for 
full Committee consideration, as amended, by a voice vote.
    The Committee on Financial Services met in open session on 
June 20, 26, and July 10, 2002 and ordered H.R. 3995 reported 
to the House, with an amendment, by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Oxley to report the bill to the House with a 
favorable recommendation was agreed to by a voice vote.
    The following amendments were considered by a record vote:

    An amendment offered by Mr. Sanders, No. 9, establishing a 
National Affordable Housing Trust Fund from FHA surplus, was 
agreed to by a record vote of 33 yeas and 28 nays (Record vote 
No. 44).
        YEAS                          NAYS
Mr. Baker                           Mr. Oxley
Mr. LaFalce                         Mr. Bereuter
Mr. Frank                           Mr. Bachus
Mr. Kanjorski                       Mr. Castle
Ms. Waters                          Mr. King
Mr. Sanders                         Mr. Royce
Mrs. Maloney of New                 Mr. Lucas of Oklahoma
  York                              Mr. Ney
Mr. Gutierrez                       Mrs. Kelly
Ms. Velazquez                       Mr. Paul
Mr. Watt of North                   Mr. Gillmor
  Carolina                          Mr. Cox
Mr. Bentsen                         Mr. Weldon of Florida
Mr. Maloney of                      Mr. Ryun of Kansas
  Connecticut                       Mr. Riley
Ms. Hooley of Oregon                Mr. LaTourette
Ms. Carson of Indiana               Mr. Jones of North
Mr. Sherman                           Carolina
Mr. Sandlin                         Mrs. Biggert
Mr. Meeks of New York               Mr. Green of Wisconsin
Mr. Lee                             Mr. Shadegg
Mr. Mascara                         Mr. Fossella
Mr. Inslee                          Mr. Gary G. Miller of
Ms. Schakowsky                        California
Mr. Moore                           Mr. Cantor
Mr. Gonzalez                        Mr. Grucci
Mrs. Jones of Ohio                  Ms. Hart
Mr. Capuano                         Mr. Ferguson
Mr. Ford                            Mr. Rogers of Michigan
Mr. Hinojosa                        Mr. Tiberi
Mr. Lucas of Kentucky
Mr. Shows
Mr. Crowley
Mr. Clay
Mr. Israel
Mr. Ross

    An amendment offered by Ms. Lee, No. 10, providing 
downpayment assistance and foreclosure prevention assistance 
the Downpayment Initiative, was not agreed to by a record vote 
of 29 yeas and 31 nays (Record vote No. 45).
        YEAS                          NAYS
Mr. LaFalce                         Mr. Oxley
Mr. Frank                           Mr. Bereuter
Mr. Kanjorski                       Mr. Baker
Ms. Waters                          Mr. Bachus
Mr. Sanders                         Mr. Castle
Mrs. Maloney of New                 Mr. King
  York                              Mr. Royce
Mr. Gutierrez                       Mr. Lucas of Oklahoma
Ms. Velazquez                       Mr. Ney
Mr. Watt of North                   Mrs. Kelly
  Carolina                          Mr. Gillmor
Mr. Bentsen                         Mr. Cox
Mr. Maloney of                      Mr. Weldon of Florida
  Connecticut                       Mr. Ryun of Kansas
Ms. Hooley of Oregon                Mr. Riley
Ms. Carson of Indiana               Mr. LaTourette
Mr. Sherman                         Mr. Jones of North
Mr. Sandlin                           Carolina
Mr. Meeks of New York               Mr. Ose
Ms. Lee                             Mrs. Biggert
Mr. Mascara                         Mr. Green of Wisconsin
Ms. Schakowsky                      Mr. Toomey
Mr. Moore                           Mr. Shadegg
Mr. Gonzalez                        Mr. Fossella
Mrs. Jones of Ohio                  Mr. Gary G. Miller of
Mr. Capuano                           California
Mr. Ford                            Mr. Cantor
Mr. Hinojosa                        Mr. Grucci
Mr. Lucas of Kentucky               Ms. Hart
Mr. Shows                           Mrs. Capito
Mr. Crowley                         Mr. Ferguson
Mr. Clay                            Mr. Rogers of Michigan
                                    Mr. Tiberi

    An amendment by Mr. Sanders (as modified by unanimous 
consent) to the amendment offered by Mrs. Kelly, No. 16a, 
replacing initial Sanders amendment with language that would 
provide for a National Housing Trust Fund with funding through 
the appropriations process rather than FHA surplus, was not 
agreed to by a record vote of 34 yeas and 35 nays (Record vote 
No. 52).
        YEAS                          NAYS
Mr. Shays                           Mr. Oxley
Mr. LaFalce                         Mr. Leach
Mr. Frank                           Mr. Bereuter
Mr. Kanjorski                       Mr. Baker
Ms. Waters                          Mr. Bachus
Mr. Sanders                         Mr. Castle
Mrs. Maloney of New                 Mr. King
  York                              Mr. Royce
Mr. Gutierrez                       Mr. Lucas of Oklahoma
Ms. Velazquez                       Mr. Ney
Mr. Watt of North                   Mr. Barr of Georgia
  Carolina                          Mrs. Kelly
Mr. Ackerman                        Mr. Paul
Mr. Bentsen                         Mr. Gillmor
Mr. Maloney of                      Mr. Cox
  Connecticut                       Mr. Weldon of Florida
Ms. Hooley of Oregon                Mr. Ryun of Kansas
Ms. Carson of Indiana               Mr. Riley
Mr. Sherman                         Mr. LaTourette
Mr. Sandlin                         Mr. Manzullo
Mr. Meeks of New York               Mr. Jones of North
Ms. Lee                               Carolina
Mr. Mascara                         Mr. Ose
Mr. Inslee                          Mrs. Biggert
Ms. Schakowsky                      Mr. Green of Wisconsin
Mr. Moore                           Mr. Toomey
Mr. Gonzalez                        Mr. Shadegg
Mrs. Jones of Ohio                  Mr. Fossella
Mr. Capuano                         Mr. Gary G. Miller of
Mr. Ford                              California
Mr. Hinojosa                        Mr. Cantor
Mr. Lucas of Kentucky               Mr. Grucci
Mr. Shows                           Ms. Hart
Mr. Crowley                         Mrs. Capito
Mr. Clay                            Mr. Ferguson
Mr. Israel                          Mr. Rogers of Michigan
Mr. Ross                            Mr. Tiberi

    The following other amendments and motions were also 
considered by the Committee:

    An amendment offered by Mr. Oxley, No. 1, requiring HUD to 
conduct a pilot program to determine the benefits of financial 
counseling to preventing foreclosures for first time homebuyers 
buying properties in high foreclosure neighborhoods and 
providing a transfer of rural multifamily rental housing 
projects to non-profit and local housing authorities, was 
agreed to by a voice vote.
    An amendment offered by Mr. LaFalce, No. 2, allowing the 
Secretary of Housing and Urban Development to continue to 
administer the Disposition of Assets in Revitalization Areas 
program, was agreed to by a voice vote.
    An amendment offered by Mr. Gary G. Miller of California, 
No. 3, creating a maximum mortgage amendment for California, 
was withdrawn.
    An amendment offered by Mr. Leach (as modified by unanimous 
consent), No. 4, providing assistance to smaller communities 
through Hope VI grants for assisting affordable housing through 
main street projects, was agreed to by a voice vote.
    An amendment offered by Mrs. Jones of Ohio, No. 5, 
requiring that the Secretary of Housing and Urban Development 
conduct a study to assess the needs of community based economic 
development organizations, was withdrawn.
    An amendment offered by Mr. Tiberi, No. 6, modifying the 
term ``public safety officer'' to include Federal police 
officers, was agreed to, by a voice vote.
    An amendment offered by Ms. Hart, No. 7, expressing the 
Sense of Congress regarding consumer protection and home 
warranties, was agreed to by a voice vote.
    An amendment offered by Mr. Maloney of Connecticut, No. 8, 
providing HUD foreclosure guidance on section 202 elderly 
housing developments, was agreed to by a voice vote.
    An amendment offered by Mr. Watt, No. 11, requiring the 
Secretary of Housing and Urban Development to create a national 
database with information about available affordable housing 
programs, an amendment offered by Mr. Capuano, No. 12, an 
amendment offered by Mr. Israel, No. 13, requiring the 
Department of Housing and Urban Affairs to review the 
feasibility and effectiveness of establishing a Federal Main 
Street Partnership Fund to make grants to local communities, 
were agreed to en bloc by unanimous consent.
    An amendment offered by Mr. Ney, No. 14, (as modified by 
unanimous consent) allowing owners of low-income rural housing 
to prepay the loan on such housing without penalties, was 
agreed to by a voice vote.
    An amendment by Mr. Bereuter to the amendment offered by 
Mrs. Kelly, No. 14a, providing that prepayment of low-income 
rural housing loans would not be allowed unless funds were 
appropriated for enhanced vouchers to protect tenants, was 
agreed to by a voice vote.
    An amendment offered by Mr. Watt, No. 15, increasing the 
payment standard to 120 percent of the fair market rent without 
HUD approval for section 8 rental subsidy, was agreed to by a 
voice vote.
    An amendment offered by Mrs. Kelly, No. 16, striking the 
Sanders trust fund language and establishing matching grants 
for states and localities that already have their own 
affordable housing trust funds, was agreed to, as amended by a 
voice vote.
    An amendment by Mr. Bereuter to the amendment offered by 
Mrs. Kelly, No. 16b, clarifying that of the total money 
available for matching funds, 40 percent would go to 
participating states and 60 percent to participating local 
jurisdictions, was agreed to by a voice vote.
    An amendment by Ms. Lee, No. 17, narrowing the one-strike 
policy used by the Department of Housing and Urban Development 
(HUD) to evict low-income tenants for drug-related crimes 
committed by their relatives or guests, was withdrawn.
    An amendment by Ms. Lee, No. 18, providing protection of 
domestic violence victims under the HUD one-strike policy, was 
agreed to by voice vote.
    An amendment by Ms. Lee, No. 19, reauthorizing the Public 
Housing Drug Elimination Program, was not agreed to, by a voice 
vote.
    An amendment by Mr. Weldon of Florida, No. 20, adding three 
requirements to the Housing for People with Aids program, was 
withdrawn.
    An amendment by Mr. Baker, No. 21, placing limitations on 
certain real estate brokerage and lending activities, was 
withdrawn.
    An amendment offered by Ms. Lee, No. 22, authorizing the 
transfer of unused section 8 funds to a local community's HOME 
account or for use in the local public housing Capital Fund, 
was not agreed to by a voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing and made 
findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The Department of Housing and Urban Development will 
improve the availability of low-income housing and increase 
opportunities for homeownership through the use of targeted 
incentives and grants and by increasing flexibility for State 
and local housing authorities.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that this 
legislation would result in no new budget authority, 
entitlement authority, or tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 10, 2002.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3995, the Housing 
Affordability for America Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Chad Chirico.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3995--Housing Affordability for America Act of 2002

    Summary: H.R. 3995 would amend and extend certain laws 
relating to housing opportunity and community development. The 
bill would seek to increase the availability of affordable 
housing and expand homeownership opportunities across the 
country. H.R. 3995 would authorize appropriations to fund both 
new initiatives and existing housing programs.
    CBO estimates that implementing this legislation would cost 
about $13.5 billion over the next five years, assuming 
appropriation of the necessary amounts. CBO estimates that 
enacting the bill would not affect direct spending or receipts; 
therefore, pay-as-you-go procedures would not apply.
    H.R. 3995 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3995 is summarized in Table 1. The 
costs of this legislation would fall within budget functions 
370 (mortgage and housing credit), 450 (community and regional 
development), and 600 (income security).

                               TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3995
----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2002     2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Estimated Authorization Level \1\.....................   17,888   17,826   18,682   19,317   19,917   20,508
    Estimated Outlays.....................................   20,257   20,529   20,858   20,998   21,143   21,239
Proposed Changes:
    Estimated Authorization Level.........................        0    5,609    6,017    2,737    3,019    3,260
    Estimated Outlays.....................................        0      625    2,018    3,140    3,764    3,941
Proposed Spending Under H.R. 3995:
    Estimated Authorization Level.........................   17,888   23,435   24,699   22,054   22,936   23,768
    Estimated Outlays.....................................   20,257   21,154   22,876   24,138   24,907   25,180
----------------------------------------------------------------------------------------------------------------
\1\ The 2002 level is the amount appropriated for that year for the Certificate Fund, HOME Investment
  Partnership Program, Housing for Special Populations, HOPE VI, Homeless Assistance Grants, Housing
  Opportunities for Persons with AIDS, Assistance for Self-Help Housing Providers, Rural Housing Rental
  Assistance Program, and includes offsetting collections generated by the Federal Housing Administration's
  single-family program and the Government National Mortgage Association's single-family Mortgage-Backed
  Security program. The 2003-2007 levels are the 2002 amounts adjusted for inflation except for programs with
  expiring authorizations.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3995 will be enacted near the beginning of the fiscal year 2003 
and that the amounts necessary to implement the bill will be 
appropriated for each fiscal year. The bill's costs by 
provision are shown in Table 2, which is followed by a 
description of the estimated costs.

                       TABLE 2.--ESTIMATED SPENDING SUBJECT TO APPROPRIATION FOR H.R. 3995
----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

                              Title I

Matching Grants for State and Local Affordable Housing Trust Funds:
    Estimated Authorization Level..................................      590      602      379      387      395
    Estimated Outlays..............................................       12       89      275      391      436
Eligibility of Room Additions for Use for Grandparents and
 Grandchildren:
    Estimated Authorization Level..................................    1,002    1,224    1,436    1,618    1,775
    Estimated Outlays..............................................      100      423      811    1,260    1,461
Down-Payment Assistance Initiative:
    Estimated Authorization Level..................................      200      204        0        0        0
    Estimated Outlays..............................................       20      120      182       82        0
Homeownership for Municipal Employees:
    Estimated Authorization Level..................................       14       15       15       15       16
    Estimated Outlays..............................................        1        9       15       15       15

                              Title II

Loss Mitigation for Hospitals:
    Estimated Authorization Level..................................       54        0        0        0        0
    Estimated Outlays..............................................       30       12       12        0        0
Down-Payment Simplification:
    Estimated Authorization Level..................................        6        8        8        9        9
    Estimated Outlays..............................................        6        8        8        9        9
Reduced Down-Payment Requirements:
    Estimated Authorization Level..................................       -3      -10      -14      -17      -20
    Estimated Outlays..............................................       -3      -10      -14      -17      -20

                             Title III

Grants for Repairs to Federally Assisted Housing for the Elderly:
    Estimated Authorization Level..................................      200      204        0        0        0
    Estimated Outlays..............................................        3       50      117      108       74
Service Coordinators for Supportive Housing for Persons with
 Disabilities:
    Estimated Authorization Level..................................       16       16       16       17       17
    Estimated Outlays..............................................        1       10       16       16       17
Demonstration Program for Elderly Housing for Intergenerational
 Families:
    Estimated Authorization Level..................................        3        3        3        3        0
    Estimated Outlays..............................................        *        *        1        2        3

                              Title IV

Housing Voucher Demonstration:
    Estimated Authorization Level..................................       13       14        0        2        8
    Estimated Outlays..............................................        0        *        2        7       13
Flexibility to Assist Hard-to-House Families:
    Estimated Authorization Level..................................      255      266      276      287      297
    Estimated Outlays..............................................       64      226      235      244      253
PHA Administrative Fees:
    Estimated Authorization Level..................................       11       12       13       13       14
    Estimated Outlays..............................................        9       12       12       13       14
Extension of Project-Based Section 8 Contract Renewals:
    Estimated Authorization Level..................................        9       12       13       13       14
    Estimated Outlays..............................................        5       11       12       13       14
Project-Based Voucher Modifications:
    Estimated Authorization Level..................................        0        0        0        0        0
    Estimated Outlays..............................................        0        *        4       16       34
Expanded Use of Enhanced Vouchers:
    Estimated Authorization Level..................................        1        2        3        3        3
    Estimated Outlays..............................................        1        2        2        3        3
Demonstration Program for Rental Assistance for Grandparent-Headed
 Families:
    Estimated Authorization Level..................................        6        0        3        6        6
    Estimated Outlays..............................................        0        3        4        4        5
Increased Payment Standard:
    Estimated Authorization Level..................................        0      110      114      119      123
    Estimated Outlays..............................................        0       43      104      108      112

                              Title V

Third-Party Public Housing Assessment System:
    Estimated Authorization Level..................................        1        0        0        0        0
    Estimated Outlays..............................................        1        0        0        0        0
Affordable Assisted Living Facilities Demonstration Program:
    Estimated Authorization Level..................................        2        4        0        0        0
    Estimated Outlays..............................................        0        *        *        1        2
HOPE VI Reauthorization:
    Estimated Authorization Level..................................      585      597        0        0        0
    Estimated Outlays..............................................        0       12       88      195      236
HOPE VI Grants for Assisting Affordable Housing Through Main Street
 Projects:
    Estimated Authorization Level..................................       29       30        0        0        0
    Estimated Outlays..............................................        0        1        4       10       12

                              Title VI

Interagency Council on the Homeless:
    Estimated Authorization Level..................................        1        1        0        0        0
    Estimated Outlays..............................................        1        1        *        0        0
Federal Emergency Management Agency Food and Shelter Grant Program:
    Estimated Authorization Level..................................      140      143        0        0        0
    Estimated Outlays..............................................      140      143        0        0        0
Emergency Shelter Grants:
    Estimated Authorization Level..................................      155      158        0        0        0
    Estimated Outlays..............................................        5       23       46       55       59
Supportive Housing Program:
    Estimated Authorization Level..................................      785      801        0        0        0
    Estimated Outlays..............................................       24      118      234      278      297
Section 8 Single-Room Occupancy:
    Estimated Authorization Level..................................       16       16        0        0        0
    Estimated Outlays..............................................        *        2        5        5        6
Shelter Plus Care:
    Estimated Authorization Level..................................      180      184        0        0        0
    Estimated Outlays..............................................       13       69      114       72       30
Housing for Domestic Violence and Sexual Assault Victims:
    Estimated Authorization Level..................................      199      203      208      212      216
    Estimated Outlays..............................................       20      120      202      206      210

                             Title VII

Native American Block Grant Reauthorization:
    Estimated Authorization Level..................................      661      675        0        0        0
    Estimated Outlays..............................................      240      380      232      172      146

                              Title IX

GNMA Guarantee Fee:
    Estimated Authorization Level..................................        0        0       56       58       59
    Estimated Outlays..............................................        0        0       56       58       59
Reauthorization of SHOP:
    Estimated Authorization Level..................................       22       23        0        0        0
    Estimated Outlays..............................................        *        8       17       13        5
HOPWA Reauthorization:
    Estimated Authorization Level..................................      282      288        0        0        0
    Estimated Outlays..............................................        8       90      165      160      112
Use of CDBG Amounts for Tornado-Safe Shelters:
    Estimated Authorization Level..................................       50       50        0        0        0
    Estimated Outlays..............................................        1       17       37       28       12
Correction of Inequities in the Second Round of Empowerment Zones:
    Estimated Authorization Level..................................      167      167      167      167      167
    Estimated Outlays..............................................        3       57      127      150      167
Assistance for Nonprofit Purchasers Preserving Affordable Housing:
    Estimated Authorization Level..................................       15       15       16       16       16
    Estimated Outlays..............................................        2        9       15       16       16
Demonstration Program for Affordable Housing Database:
    Estimated Authorization Level..................................        2        0        0        0        0
    Estimated Outlays..............................................        1        1        0        0        0
Tenant Protection for Section 515 Properties:
    Estimated Authorization Level..................................       41       83      127      157      172
    Estimated Outlays..............................................       20       60      102      137      158
Removal of Prepayment Restrictions for Section 515 Properties:
    Estimated Authorization Level..................................     -102     -102     -102      -65      -27
    Estimated Outlays..............................................     -102     -102     -102      -65      -27
                                                                    --------------------------------------------
Total, Changes In Spending Subject to Appropriation:
    Estimated Authorization Level..................................    5,609    6,017    2,737    3,019    3,260
    Estimated Outlays..............................................      625    2,018    3,140    3,764    3,941
----------------------------------------------------------------------------------------------------------------
Notes:
* = Less than $500,000 per year.
Numbers may not add up to totals because of rounding.
PHA = Public Housing Authority; HOPE VI = Home Ownership and Opportunity for People Everywhere; GNMA =
  Government National Mortgage Association; SHOP = Self-Help Housing Providers; HOPWA = Housing Opportunities
  for Persons with AIDS; CDBG = Community Development Block Grant.

Title I: Home Investment Partnerships Program

    CBO estimates that implementing title I would cost $5.7 
billion over the 2003-2007 period, assuming appropriation of 
the necessary amounts.
    Matching Grants for State and Local Affordable Housing 
Trust Funds. Section 101 would authorize such sums as may be 
necessary for grants to state and local trust funds to support 
the production, preservation, and rehabilitation of housing 
affordable to extremely low and low-income families. Families 
occupying units produced with this funding would be required to 
pay not more than 30 percent of their adjusted monthly income 
toward rent.
    CBO assumes that limiting tenant rent contributions to 30 
percent of adjusted income would not provide sufficient revenue 
to cover operating expenses, including an adequate reserve, for 
the newly constructed or rehabilitated properties. Therefore, 
the number of new units that could be produced through this 
program would be limited by the availability of operating 
subsides. As discussed later in this cost estimate, CBO 
estimates that sections 401 and 411 of this bill would provide 
enough project-based operating subsidy to support approximately 
25,000 new or rehabilitated units (5,000 incremental project-
based vouchers in 2003 and 2004 and attaching about 4,000 
housing choice vouchers to the new units each year through 
2007). Based on data provided by the Department of Housing and 
Urban Development (HUD), CBO assumes that units currently 
produced through the HOME program cost and average of $91,000. 
CBO estimates that implementing this provision would require 
the appropriation of $2.4 billion over the 2003-2007 period, 
with outlays of $1.2 billion over that period.
    Eligibility of Room Additions for Use for Grandparents and 
Grandchildren. Section 104 would allow participating local 
jurisdictions to provide HOME investment Partnership funds to 
low-income families to build an additional room or add a 
cottage to an existing dwelling for an elderly relative if it 
is necessary to avoid the relative's placement in an 
institutionalized setting. Based on data published by the 
Centers for Disease Control and Prevention and the Agency for 
Healthcare Research and Quality, CBO assumes that nearly a 
million elderly individuals from families eligible to receive 
assistance under this provision are admitted into nursing home 
facilities each year. About one in six of these individuals 
require help with fewer than three of daily living (ADLs), 
which would make them suitable candidates for home care.
    Results from a 1991 survey conducted by the American 
Association of Retired Persons indicate that 44 percent of 
families would prefer to care for frail or disabled family 
members at home. Assuming appropriation of the necessary 
amounts. CBO estimates that this provision would allow about 
72,000 of these elderly individuals to avoid placement in an 
institutionalized setting each year at a cost of approximately 
$10,000 per grant. CBO notes that this reduction in nursing 
home placement could result in Medicaid savings if the beds not 
used by this population are not filed by previously unmet 
demand. (Any such change in Medicaid spending can not be 
attributed to H.R. 3995, however, because the grants that might 
lead to the savings are contingent upon appropriation action.)
    In addition, based on data published by the National 
Alliance for Caregiving, CBO assumes that by 2007 roughly 10 
percent of the 1.4 billion low-income households that are 
involved in caregiving for frail elderly relatives requiring 
some help (individuals with one or two ADLs) also would receive 
funding through this provision. This estimate is highly 
uncertain because the legislative language would provide little 
guidance to HUD on how to limit eligibility. If HUD were to 
target funding to families with frail relatives most likely to 
be admitted to nursing homes, participation would be lower than 
the CBO estimate. However, given the lack of predictability of 
nursing home admissions, the regulations might become less 
restrictive than CBO assumes. In total, CBO estimates that 
section 106 would authorize the appropriation of about $7 
billion over the 2003-2007 period, with estimated outlays of 
about $4 billion over that period.
    Down-Payment Assistance Initiative. Section 108 would 
authorize the appropriation of such sums as may be necessary 
through 2004 to be used for down-payment assistance toward the 
purchase of single-family housing by low-income first-time 
homebuyers. Based on information from HUD, CBO assumes that the 
program would provide down-payment assistance to about 28,000 
families each year. The average amount of down-payment 
assistance is assumed to be comparable with those currently 
provided through the HOME program or approximately $7,200. CBO 
estimates that implementing section 108 would cost $404 million 
over the 2003-2007 period, assuming the appropriation of the 
necessary amounts.
    Homeownership for Municipal Employees. Section 109 would 
allow HOME funds to be used for homeownership assistance for 
public safety employees and teachers whose income does not 
exceed 115 percent of median income (this may be increased by 
HUD to 150 percent of median income if certain conditions are 
met). CBO estimates that demand for such assistance is somewhat 
limited because of the already high homeownership rate for this 
population (almost 10 percentage points higher than the 
national average) and competition from programs that provide 
similar assistance on both the federal and local level. CBO 
assumes that demand would be similar to HUD's Officer/Teacher 
Next Door program which serves approximately 2,000 buyers each 
year. The average grant amount is assumed to be about $7,200, 
which is similar to the average down-payment assistance 
currently provided through the HOME program. CBO estimates that 
implementing section 109 would require the appropriation of $75 
million over the 2003-2007 period, increasing outlays by $55 
million over the same period.

Title II: FHA Mortgage Insurance

    CBO estimates that implementing title II would have a net 
cost of $33 million in 2003 and $30 million over the 2003-2007 
period.
    Loss Mitigation Demonstration for Hospitals. Section 204 
would require the Federal Housing administration (FHA) to 
carryout a demonstration program that would provide various 
types of mortgage assistance for not more than three hospitals 
with existing FHA-insured loans. The mortgage assistance could 
include the payment of a portion of outstanding debt, as well 
as payment for the repairs and rehabilitation required for the 
conversion of the hospitals to facilities providing health care 
and housing to the elderly. Subject to the availability of 
appropriations, such assistance would be provided as a means to 
assist financially troubled hospitals, and it would be limited 
to 30 percent of a hospital's unpaid mortgage balance. 
(According to FHA, the average unpaid mortgage balance per 
hospital loan is $60 million.) Based on information from FHA, 
CBO assumes that the demonstration would include three 
hospitals, that the maximum amount of assistance per hospital 
(i.e., 30 percent of the unpaid balance on a loan) would be 
provided, and that there would be little likelihood that any 
assistance provided would be repaid by the borrower. As such, 
CBO estimates that an appropriation of $54 million in 2003 
would be required to support the demonstration program.
    Simplification of Down Payment. Section 221 would 
permanently change the process FHA uses to determine the amount 
of a down payment that is necessary for mortgages on the 
single-family homes that it insures. Under current law, the 
down payment is calculated using a formula established in a 
1996 pilot program. Under this formula, the maximum mortgage 
amount that FHA could insure would be determined as a fixed 
percentage of the home value. Authority to use this formula is 
scheduled to terminate on December 31, 2002, but section 221 
would make its use permanent.
    Based on information from FHA, CBO estimates that 
continuing the use of the current down-payment formula would 
slightly increase the cost of guaranteeing FHA loans because it 
would lead to a small increase in the loan-to-value (LTV) 
ratios of about 15 percent of the loans guaranteed each year 
after 2002. The LTV ratio indicates how much equity a borrower 
initially has in the home, and serves as a good predictor of 
the likelihood of default. On average, borrowers with less 
equity (that is, higher LTV ratios) have higher default rates 
than borrowers with more equity. We estimate that this 
provision would increase the cost of guaranteeing some loans, 
resulting in a cost of $6 million in 2003 and $40 million over 
the 2003-2007 period. The estimated changes in FHA's loan 
subsidy costs--which are treated as discretionary spending--
would be recorded in each year as new loans are disbursed.
    Reduced Down-Payment Requirements. Section 222 would reduce 
the down-payment requirements for federally insured mortgages 
for teachers and public safety officers. Enacting this 
provision could enable certain teachers and public safety 
officers to purchase homes within their work regions with an 
FHA guarantee, by permitting a down payment as low as 1 percent 
of the mortgage amount instead of the 3 percent minimum down 
payment that is currently required. In addition, for each year 
that the loan is held and the borrower continues to work in the 
designated school district of public safety jurisdiction, FHA 
would defer 20 percent of the up-front cost of obtaining the 
loan. Normally, FHA charges a fee of 1.5 percent of the loan 
amount as the up-front cost of obtaining an FHA loan guarantee.
    The budgetary impact of this new loan program would depend 
on how many households would use this provision to help them 
become homeowners and how long these homeowners would remain in 
these homes. Based on information from associations, private 
investment firms, banks, FHA, and industry experts, CBO expects 
that about 10,000 loans (with a face value of about $1 billion) 
would be guaranteed after the program is fully implemented in 
2004. CBO expects that demand for this program would grow to 
almost 20,000 loans by 2007. CBO expects that this new program 
would be profitable (and thus generate negative subsidies), 
though not as profitable as the current single-family program 
where fees are not waived or reduced and default rates are 
slightly lower. We estimate that this new program would have a 
subsidy rate of about negative 0.75 percent, compared to a 
subsidy rate of negative 2.53 percent for FHA's single-family 
program in 2003 and negative 2.4 percent in subsequent years. 
CBO estimates that implementing the program would result in 
additional offsetting collections of $2 million in 2003 and $41 
million over the 2003-2007 period.
    In addition, because the majority of FHA-insured loans are 
eventually included in the Government National Mortgage 
Association (GNMA) Mortgage-Backed Securities (MBS) program, 
CBO estimates that implementing this provision would result in 
additional collections in GNMA of $1 million in 2003 and $23 
million over the 2003-2007 period.

Title III: Supportive Housing for Elderly and Disabled Families

    CBO estimates that implementing title III would cost $418 
million over the 2003-2007 period, assuming the appropriation 
of the necessary amounts.
    Authorization of Appropriations for Grants for Repairs to 
Federally Assisted Housing for the Elderly. Section 301 would 
authorize the appropriation of such sums as may be necessary 
through 2004 to be used for grants for substantial capital 
repairs for elderly multifamily housing. Based on information 
provided by HUD and industry officials, CBO assumes that 
funding for approximately 27,000 units per year would be 
provided in 2003 and 2004 at a cost of about $7,500 per unit. 
Thus, CBO estimates that implementing this section would 
require the appropriation of $404 million over the next two 
years, with outlays of $351 million over the 2003-2007 period.
    Service Coordinators for Supportive Housing for Persons 
with Disabilities. Section 302 would add Section 811 Supportive 
Housing for the Disabled to the list of federally assisted 
housing programs that are eligible to receive grants to provide 
service coordinators. Service coordinators assist residents in 
obtaining needed supportive services from community agencies. 
In fiscal year 2002, 6.4 percent of the total allocation for 
the Section 202 elderly housing program was earmarked for 
service coordinators. Assuming a similar ratio, CBO estimates 
that section 302 of H.R. 3995 would authorize $82 million for 
the 2003-2007 period, with outlays of $60 million over that 
period.
    Demonstration Program for Elderly Housing for 
Intergenerational Families. Section 303 would require HUD to 
reserve from future appropriations for Section 202 elderly 
housing amounts necessary to fund a demonstration program to 
determine the feasibility of providing intergenerational 
dwelling units for households headed by an elderly person. The 
bill would require HUD to fund between two and four projects 
during the demonstration period of 2003-2006.
    In 1998, a similar program in Massachusetts developed a 26-
unit intergenerational project at a cost of approximately $4 
million. Assuming a comparable cost per project after 
adjustments for inflation and the regional cost of housing, CBO 
estimates that a four-project demonstration program would 
require an appropriation of $13 million over the 2003-2007 
period with resulting outlays of $7 million over the same 
period.

Title IV: Section 8 Rental Housing Assistance Program

    CBO estimates that implementing title IV would cost $1.6 
billion over the 2003-2007 period, assuming appropriation of 
the necessary amounts.
    Housing Voucher Demonstration. Section 401 would authorize 
the appropriation of the amount necessary to provide a total of 
5,000 incremental project-based vouchers for fiscal years 2003 
and 2004. CBO assumes that these vouchers would be used in 
conjunction with the affordable housing production and 
preservation funding authorized in section 101 and that 
renewals would begin in the year following initial occupancy. 
Assuming an average project-based voucher cost of $5,300, CBO 
estimates that the issuance and renewal of these vouchers would 
require an appropriation of $38 million over the 2003-2007 
period, with outlays of $23 million over the same period.
    Flexibility to Assist Hard-to-House Families. Section 402 
would allow public housing authorities (PHAs) to use up to 2 
percent of amounts allocated to the agency each year for 
purposes that directly support the agency's housing choice 
voucher program (the program that provides tenant-based 
vouchers to low-income families). These funds could be used for 
housing counseling programs, down-payment assistance, rental 
security deposits, and other activities that assist eligible 
families in obtaining suitable dwelling units. Currently, many 
PHAs are not able to utilize their full allotments each year 
because some tenant-based vouchers cannot be placed. Assuming 
the appropriation of the necessary amounts; CBO estimates that 
this authority would cost $1 billion over the 2003-2007 period.
    PHA Administrative Fees. Section 404 would authorize the 
Secretary of HUD to pay incentive fees to public housing 
agencies that succeed in achieving high or substantially 
improved performances on specified program requirements. Based 
on information provided by HUD, CBO assumes that one-third of 
all units are administered by public housing authorities that 
have been rated as ``high performers'' under the Section 8 
Management Assessment Program and, therefore, would be likely 
recipients of the incentive fees. Assuming an administrative 
fee bonus of 3 percent, CBO estimates that this provision would 
require the appropriation of $63 million over the 2003-2007 
period, with outlays of $60 million over that period.
    Extension of Project-Based Section 8 Contract Renewals. 
Section 408 would amend the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 to allow rents for properties 
subsidized through the moderate rehabilitation program to be 
renewed at market rates. Under current law, rents are renewed 
at the lesser of adjusted existing rents, fair market rents, or 
market rents.
    Based on data provided by HUD, state housing agencies, and 
public housing agencies, CBO estimates that almost half of the 
52,000 moderate rehabilitation units subsidized by HUD 
currently have contract rents that are below market for 
comparable units. Average monthly rents for such units are 
estimated to be approximately $50 below the market rate. CBO 
estimates that allowing contract rents on these units to be 
marked up to market upon contract expiration would require the 
appropriation of $61 million over the 2003-2007 period, with 
outlays of $54 million over that period.
    Project-Based Voucher Modifications. Section 411 would 
modify the rules that govern attaching housing choice voucher 
subsidies to structures rather than to individuals. Currently, 
no more than 25 percent of the dwelling units in most buildings 
may be assisted in this manner. The modifications in this 
section would expand the exceptions to this rule to include 
properties of one to four units and buildings outside of 
qualified census tracts with five to 25 units. Assuming the 
availability of appropriations, CBO estimates that these 
modifications, when used in conjunction with the production 
funding authorized in section 101, would gradually increase 
voucher utilization by 20,000 units. This increased utilization 
would cost $54 million over the 2003-2007 period.
    Expanded Use of Enhanced Vouchers. Section 412 would allow 
families who are eligible for enhanced voucher assistance, but 
live in units that are unavailable for continued rental due to 
conversion to condominium, cooperative, or commercial use, to 
transfer the enhanced voucher to another unit within the same 
or contiguous zip code. The enhanced vouchers provided to these 
families would have payment standards of up to 150 percent of 
the applicable fair market rent. Based on information from HUD 
and industry officials, CBO estimates that such conversions are 
relatively rare, representing approximately 2 percent of the 
28,000 opt-out units each year. This expanded use of enhanced 
vouchers would add, on average, about 36 percent to the cost of 
the tenant protection vouchers issued as a result. CBO 
estimates that this provision would require the appropriation 
of $12 million over the 2003-2007 period, with outlays of $10 
million over that period.
    Demonstration Program for Rental Assistance for 
Grandparent-Headed or Relative-Headed Families. Section 413 
would direct HUD to reserve amounts made available for tenant-
based voucher assistance to be used for a demonstration program 
to determine the feasibility of providing rental assistance to 
families headed by a grandparent or relative. The section would 
require the demonstration to be conducted by not less than two 
and not more than four public housing agencies. CBO assumes 
that HUD would choose four housing authorities of various sizes 
for this demonstration and that it could be conducted with 
1,000 vouchers (500 vouchers for a large PHA, 225 vouchers for 
two mid-sized PHAs, and 50 vouchers for a small PHA). Assuming 
that renewals would begin the year following initial occupancy, 
the issuance and renewal of these vouchers would require the 
appropriation of $21 million over the 2003-2007 period, 
resulting in outlays of $17 million over that period.
    Increased Payment Standard. Section 415 would allow PHAs to 
use funds appropriated for fiscal year 2004 and future years to 
establish a payment standard of up to 120 percent of the Fair 
Market Rent (FMR) for units assisted by tenant-based vouchers 
without the approval of HUD. A PHA would be able to establish a 
payment standard at this level if it has had a payment standard 
of at least 110 percent of the FMR for the previous six months 
and has a voucher success rate (the proportion of families that 
are issued a voucher that succeed in leasing a unit) of not 
more than 80 percent. Prior to increasing the payment standard, 
PHAs must include the reasons for the increase in their annual 
plan.
    Based on information provided by HUD, CBO estimates that 
approximately 12 percent of units are managed by PHAs that have 
set payment standards at or above 110 percent of the FMR and 
that an additional 13 percent would have payment standards at 
that level within one year after enactment. In addition, CBO 
estimates that 70 percent of units are managed by PHAs that 
meet the success rate requirement. CBO estimates that allowing 
PHAs to increase payment standards would require the 
appropriation of $466 million over the 2003-2007 period, with 
outlays of $367 million over that period.

Title V: Public Housing

    CBO estimates that implementing title V would cost $562 
million over the 2003-2007 period, assuming appropriation of 
the necessary amounts.
    Third-Party Public Housing Assessment System. Section 503 
would give HUD the authority to develop a prototype of an 
alternative evaluation system for assessing the overall 
performance of housing authorities. The bill would require HUD 
to enter into a contract with an outside entity to develop the 
prototype assessment system. CBO estimates that this provision 
would cost approximately $1 million in fiscal year 2003.
    Affordable Assisted Living Facilities Demonstration 
Program. Section 504 would authorize such sums as may be 
necessary through 2004 to carry out a program to demonstrate 
the effectiveness of making grants to public housing agencies 
to convert elderly dwelling units to assisted living 
facilities. These facilities would be designed for elderly 
tenants who can live independently but require supportive 
services. The section would authorize appropriations for the 
conversion of three eligible properties. A similar conversion 
program for elderly housing assisted under section 202 of the 
Housing Act of 1959 has required an average of $1.8 million per 
project in 2000 and 2001. Assuming a similar cost per project, 
CBO estimates that implementing section 504 would require the 
appropriation of $6 million over the next two years, with 
outlays of $3 million over the 2003-2007 period.
    HOPE VI Authorization of Appropriations. Section 522 would 
authorize the appropriation of such sums as necessary for the 
HOPE VI program through 2004. In 2002, $574 million was 
appropriated for this program. CBO estimates that implementing 
this section would cost $531 million through 2007, assuming 
appropriation of the necessary amounts.
    HOPE VI Grants for Assisting Affordable Housing Through 
Main Street Projects. Section 524 would authorize HUD to 
provide up to 5 percent of the amount appropriated for the HOPE 
VI program for use by smaller communities (population below 
30,000) for affordable housing activities in conjunction with 
the revitalization of a traditional commercial area. Assuming 
the appropriation of the necessary amounts, CBO estimates that 
implementing section 524 would cost $27 million through 2007.

Title VI: Homeless Housing Programs

    CBO estimates that implementing title VI would cost about 
$2.5 billion over the 2003-2007 period, assuming inflation-
adjusted appropriations.
    Homelss Assistance Programs. Title VI would extend the 
authorizations for the following programs through 2004 for such 
sums as may be necessary:
           Interagency Council on the Homeless 
        (estimated outlays of $2 million over the 2003-2007 
        period);
           Federal Emergency Management Agency food and 
        shelter program (estimated outlays of $283 million over 
        the 2003-2007 period);
           Emergency shelter grants program (estimated 
        outlays of $188 million over the 2003-2007 period);
           Supportive housing program (estimated 
        outlays of $950 million over the 2003-2007 period);
           Section 8 assistance for single room 
        occupancy dwellings (estimated outlays of $19 million 
        over the 2003-2007 period); and
           Shelter plus care (estimated outlays of $299 
        million over the 2003-2007 period).
    Housing for Domestic Violence and Sexual Assault Victims. 
Section 607 would authorize the appropriation of such sums as 
necessary for fiscal years 2003 through 2007 to carry out a 
program that provides grants to qualified organizations for 
providing housing assistance for the victims of domestic 
violence or sexual assault. Survey data provided by the 
National Coalition Against Domestic Violence indicate that 
approximately half of the 83,000 families that were either 
served by or turned away from domestic violence shelters in 
2000 are in need of transitional housing services. Based on 
information provided by HUD, CBO assumes that the average cost 
to assist each family would be approximately $6,000 per year, 
25 percent of which would be provided by the qualified 
organizations receiving assistance. CBO estimates that this 
section would authorize the appropriation of $1 billion over 
the 2003-2007 period, and result in outlays of $759 million 
over that period.

Title VII: Reauthorization of Native American Housing and Self-
        Determination Act

    Section 701 would authorize the appropriation of such sums 
as necessary through 2004 for Native American Housing Block 
Grants, title VI loan guarantees, and training and technical 
assistance. For 2002, $649 million was appropriated for these 
purposes. Assuming continued funding at that level and 
adjusting for inflation, CBO estimates that implementing this 
provision would cost $1.2 billion over the 2003-2007 period.

Title IX: Other Housing Programs

    CBO estimates that implementing title IX would cost $1.5 
billion over the 2003-2007 period, assuming appropriation of 
the necessary amounts.
    GNMA Guarantee Fee. GNMA is responsible for guaranteeing 
securities backed by pools of mortgages insured by the federal 
government. (These securities are known as mortgage-backed 
securities or MBS). For a fee charged to lenders or issuers of 
the securities, GNMA guarantees the timely payments of 
scheduled principal and interest due on the pooled mortgages 
that back their securities. Under current law, GNMA charges 
lenders or issuers an annual fee of 6 cents for every $100 (6 
basis points) of guaranteed mortgage-backed securities backed 
by single-family loans. Furthermore, a fee increase to 9 basis 
points is scheduled to take effect on October 1, 2004. Section 
901 would repeal that fee increase. CBO estimates that 
eliminating the fee increase would increase the subsidy rate 
associated with the single-family MBS program and increase the 
demand for the program.
    Based on information from GNMA, CBO estimates that the 
collection of lower fees would reduce the subsidy for the 
single-family MBS program from negative 0.56 percent to 
negative 0.37 percent. (As with the FHA single-family program, 
GNMA guarantee fees for the mortgage-backed securities more 
than offset the costs of expected defaults, resulting in net 
collections from the MBS program.) CBO expects that by 
extending the lower fee of 6 basis points, however, GNMA would 
remain more competitive with other MBS programs and continue to 
guarantee more than $100 billion worth of mortgage-backed 
securities, as it does under the current fee structure. Thus, 
while repealing the fee increase would result in a less 
profitable program, this loss would be partially offset by 
additional receipts stemming from an expected increase in 
demand for GNMA services of about 25 percent. On balance, CBO 
estimates that implementing this provision would cost $56 
million in 2005 and $173 million over the 2005-2007 period.
    Assistance for Self-Help Housing Providers. Section 903 
would authorize the appropriation of $22 million in 2003 and 
$23 million in 2004 for HUD to issue grants to facilitate self-
help housing homeownership opportunities. Assuming the 
appropriation of the necessary amounts, CBO estimates that 
implementing this provision would cost $43 million over the 
2003-2007 period.
    Housing Opportunities for Persons with AIDS: Section 904 
would authorize the appropriation of such sums as necessary 
through 2004 for the Housing Opportunities for Persons with 
Aids program. For 2002, $277 million was appropriated for this 
program. Assuming inflation-adjusted appropriations, CBO 
estimates that the bill would authorize the appropriation of 
$570 million for the 2003-2004 period, with outlays of $535 
million over the 2003-2007 period.
    Use of CDBG amounts for construction of tornado-safe 
shelter for manufactured housing parks. Section 905 would 
authorize HUD to make block grants to communities for the 
construction of storm-safe shelters for manufactured housing 
parks. Based on information from HUD, CBO estimates that 
implementing this section would cost $95 million for land 
acquisition, construction, and the maintenance cost of such 
shelters over the 2003-2007 period, assuming the appropriation 
of the necessary amounts.
    Correction of Inequities in the Second Round of Empowerment 
Zones. Section 909 would authorize the appropriation of such 
sums as are necessary to make grants to the 15 areas designated 
in the second round of urban empowerment zones. Based on 
information from HUD and the amount of past appropriations for 
the first round of urban empowerment zones, CBO estimates that 
each second round zone would receive $100 million for various 
economic development projects. The empowerment zone designation 
ends in 2009. The 15 empowerment zones have received $330 
million so far, and CBO estimates that this provision would 
cost $504 million over the 2003-2007 period.
    Assistance for Nonprofit Purchases Preserving Affordable 
Housing. Section 911 would authorize the appropriation of such 
sums as necessary to make grants to nonprofit organizations 
with a regional or national focus that work to acquire and 
preserve affordable housing. The grants would be intended to 
support the nonprofits' operating, working capital, and 
organizational expenses. Based on information from industry 
representatives, CBO estimates that there are approximately 15 
national and 60 regional nonprofit purchasers of affordable 
housing and that average annual operating expenses for these 
organizations range from $500,000 to $2 million. We estimate 
that HUD would provide these agencies with grants equal to 
about 25 percent of their annual operating expenses. CBO 
estimates that implementing this section would cost $57 million 
over the 2003-2007 period.
    Demonstration Program for Affordable Housing Database. 
Section 916 would give HUD the authority to conduct a 
demonstration program to develop an electronic database that 
provides agencies, municipalities, and the general public 
access to information about affordable housing. The provision 
would limit the demonstration to not more than three sites. CBO 
estimates that carrying out this provision would cost $2 
million over the 2003-2004 period.
    Tenant Protection and Removal of Prepayment Restrictions 
for Section 515 Properties. Section 918 would remove all 
restrictions on the prepayment of certain Rural Housing Service 
(RHS) loans and would provide, subject to the availability of 
appropriations, enhanced vouchers to each low-income family who 
would be displaced by the prepayment of these loans.
    Beginning in the 1960s, the RHS made direct loans, 
generally for about 40 years, to builders for the construction 
of multifamily rental housing units in rural areas. Many of 
these properties (known as section 515 properties) receive 
project-based rental assistance, which is a type of housing 
subsidy that is tied to the unit, and thus the household can 
only benefit from the subsidy while living in the subsidized 
unit. Under current law, section 515 loans made before December 
14, 1989, may not be prepaid after 20 years from the date of 
the loan unless certain conditions concerning the maintenance 
of the property are met.
    Based on information from the General Accounting Office and 
RHS, CBO estimates that this section would allow for the 
prepayment of mortgages associated with about 4,000 section 515 
projects over the next eight years. The budgetary impact of 
this provision would be twofold. First, CBO estimates that 
108,000 units would be eligible for enhanced vouchers and that 
the rents for these units would increase by approximately 45 
percent. Over the 2003-2007 period, we estimate that the 
funding of such vouchers would cost about $477 million above 
the subsidy payments currently provided to the families that 
live in these properties.
    Second, assuming appropriations language would specify the 
use of enhanced vouchers for this particular population, 
prepayments of section 515 properties would result in savings 
of about $102 million to the federal government in 2003 and 
$398 million over the 2003-2007 period. (The average original 
loan amount for the section 515 projects is $730,000.) Because 
the expected prepayments would change the cash flows associated 
with the section 515 loan program, this provision would be 
considered to be a modification of existing federal loans. The 
costs of a loan modification are estimated on a net present 
value basis in the year in which the modifications take place. 
CBO estimates that $398 million in savings from the more rapid 
repayment of the outstanding principal balance on about 4,000 
section 515 loans would be recorded in the budget over the 
2003-2007 period under this provision. Note, however, that 
those potential savings are contingent upon appropriation of 
the funds necessary to provide the additional enhanced use 
vouchers for section 515 properties (as estimated above). That 
is, the prepayments would not occur in the absence of such 
appropriations.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 3995 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. Any significant costs to state, local, or 
tribal governments would result from complying with conditions 
of federal aid.
    Previous CBO estimate; On August 21, 2002, CBO transmitted 
a cost estimate for H.R. 3995 as ordered reported by the House 
Committee on the Judiciary on July 23, 2002. That version of 
the bill included many provisions similar to those in this bill 
and had an estimated cost of about $12.6 billion over the next 
five years ($1.3 billion lower than the Financial Services 
Committee's version), assuming appropriation of the necessary 
amounts, as well as a $34 million increase in direct spending 
over the 2003-2008 period (in contrast to no direct spending 
for the version approved by the Financial Services Committee).
    The major differences in this version of H.R. 3995 are:
           The creation of a matching grant provision 
        for state and local affordable housing trust funds;
           Modifications to the HOME program including 
        the creation of a down-payment assistance program and a 
        homeownership program for municipal employees;
           The authorization of appropriations for 
        grants to repair federally assisted housing for the 
        elderly;
           Modifications to the rules governing Section 
        8 housing vouchers;
           The creation of a new transitional housing 
        program for the victims of domestic violence and sexual 
        assault;
           The removal of prepayment restrictions for 
        Section 515 properties; and
           The establishment of various demonstration 
        programs.
    Estimate prepared by: Federal Costs: Housing Assistance 
Programs: Chad Chirico; FHA and GNMA Subsidies: Susanne S. 
Mehlman; and Community Development Programs; Lanette Walker. 
Impact on State, Local, and Tribal Governments: Greg Waring. 
Impact on the Private Sector: Cecil McPherson.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short Title and Table of Contents

    This section establishes the short title of the bill, the 
``Housing Affordability for America Act of 2002'' and provides 
a table of contents.

              TITLE I--HOME INVESTMENT PARTNERSHIP PROGRAM

Section 101. Affordable Housing Production and Preservation

    HUD is currently authorized to make housing funds available 
to participating State and local jurisdictions through a 
previously established HOME Investment Trust Fund. Appropriated 
funds must be allocated by a formula based on factors 
reflecting need, with 1 percent to Indian tribes, the remainder 
divided 60 percent among local governments and 40 percent to 
States, with minimums for each participating State and 
locality. HOME funds may be used for rehabilitation, new 
construction, or tenant-based assistance. The funds may not be 
used for administrative expenses, for public housing operating 
subsidies, for rental assistance for families displaced by 
demolition of public housing, for extension of section 8 
contracts, or for preservation of assisted housing projects. 
Participating jurisdictions are required to provide matching 
funds of 25 cents for every dollar of HOME funds received. The 
matching funds must be from non-Federal sources. The 
eligibility of households for HOME assistance varies with the 
nature of the funded activity. For rental housing and rental 
assistance, at least 90 percent of families must have incomes 
that are no more than 60 percent of the HUD-adjusted median 
family income for the area. In rental projects with five or 
more assisted units, families with incomes that do not exceed 
50 percent of the HUD-adjusted median income must occupy 20 
percent of the units. The incomes of households receiving HUD 
assistance may not exceed 80 percent of the median income for 
the area.
    H.R. 3995 amends HOME to establish a housing production 
program to increase the production and preservation of mixed 
income rental housing affordable to very low and extremely low-
income families. The bill amends the HOME Investment 
Partnership Act to permit HUD to make grants to affordable 
housing trust funds established by States and localities. The 
bill requires that matching funds from non-Federal sources and 
the trust fund be used only for the production, preservation, 
or rehabilitation of affordable housing. ``Qualified Affordable 
Housing'' is defined as rental housing subject to binding 
commitments to ensure that all the following requirements are 
met: (1) the rent not exceed the lesser of the section 8 fair 
market rent or 30 percent of the adjusted income of a family 
whose income equals 65 percent of the area median income; (2) 
the family's contribution towards rent not exceed 30 percent of 
the family's adjusted income, (3) the housing unit must be one 
of the units subject to the requirement that a percentage of 
the units are available only for occupancy by families assisted 
under the section 8 voucher program; (4) all units in the 
project must be subject to restrictions providing for non-
discrimination against holders of vouchers; (5) the housing 
must be subject to the above requirements for at least 40 
years. A trust fund would be permitted to use up to 5 percent 
of its grant amount towards payment of the operating costs of 
nonprofit housing development organizations. Of the remainder, 
75 percent would have to be distributed for activities 
providing rental housing for extremely low-income families, and 
25 percent would have to be distributed for activities related 
to qualified affordable housing which would provide rental 
housing and homeownership assistance for low-income families.
    A trust fund receiving these grants needs a HUD-approved 
allocation plan describing how the grants would be distributed 
during the fiscal year. The plan includes a description of 
eligible activities to be conducted, and certification that any 
housing assistance would be in compliance with the definition 
for qualified affordable housing with respect to the rents 
charged, the tenant's rent contribution, the availability of 
housing for voucher holders, and use of the property as 
affordable housing for 40 years. The plan notes the selection 
criteria for applicants and preference must be based on several 
criteria: (1) the amount of assistance leveraged from non-
Federal sources; (2) the extent of local assistance, including 
financial, and the extent that zoning issues and other barriers 
to affordable housing were addressed; (3) the degree to which 
the project will have residents of varying incomes; (4) the 
extent of economic opportunity for low-income families in the 
area; (5) the demonstrated ability of the applicant to maintain 
the property as qualified affordable housing; (6) the extent to 
which the county is experiencing a rental vacancy rate of 2 
percent or less; (7) the extent to which more than 35 percent 
of the housing in the county is 45 years old or older; (8) 
whether the applicant has provided that 75 percent of the grant 
amounts would be used in communities undergoing revitalization 
or in census tracts in which less than 20 percent of the 
families have incomes less than the poverty line, and 25 
percent of the grant amounts would be used in communities that 
are not undergoing revitalization and in census tracts in which 
more than 20 percent of the families have incomes less than the 
poverty line; and (9) whether the applicant has provided that 
at least 45 percent of the grant amounts would be used to 
assist families having median incomes less than 30 percent of 
the area or State median, at least 30 percent of the grant 
amounts would be used to assist families employed full time at 
the greater of the Federal or State minimum wage, and no more 
than 25 percent of the grant amounts would be used to assist 
families having incomes greater than that listed above but 
which would not exceed the greater of the median income for the 
State or 80 percent of the median income for the area. 
Assistance from grant amounts would be in the form of capital 
grants, no interest and low-interest loans, deferred payment 
loans, guarantees, and other assistance as approved by HUD.
    Affordable housing trust funds will be directed to 
coordinate the distribution of these grants funds with the 
provision of other affordable housing assistance. Contracts 
involving the construction of 12 or more units must provide for 
the payment of prevailing wages as determined by the Davis-
Bacon Act. Such sums as necessary are authorized to be 
appropriated in FY 2003 and each fiscal year thereafter for 
grants under section 291. Amounts available for the HOME 
Investment Partnerships Act would not be available for section 
291 grants. Except as provided in this subtitle, the provisions 
of the HOME program would not apply to section 291 grants. HUD 
would be directed to use the total amount made available under 
section 291 each fiscal year, and to allocate 40 percent of the 
funds to States, and to allocate 60 percent of the funds to 
participating local jurisdictions. Each State affordable 
housing trust fund would receive at least 1 percent of the 
amount allocated to the State.

Section 102. 3-Year Inspection Cycle for Tax Credit Projects

    Under current law, participating jurisdictions must inspect 
rental housing produced under the HOME program to monitor 
compliance with HOME requirements: once every three years if 
the property has between one and four units, once every two 
years if the property has between five and 25 units, and 
annually if the property has 26 or more units. H.R. 3995 gives 
participating jurisdictions the ability to synchronize risk 
management techniques with Low Income Housing Tax Credit 
projects to determine when and how often they should conduct 
on-site monitoring of projects, as long as projects are 
monitored at least once every 3 years. Basing property 
monitoring on risk management techniques will allow 
participating jurisdictions to focus on those properties that 
they believe to be at highest risk.

Section 103. Repeal of Limitation on Program Assistance as Percentage 
        of Operating Budget

    At present, participating jurisdictions may enter into 
contracts with organizations that provide education to 
homeowners and tenants, organizational support, and other 
technical assistance in furtherance of the jurisdictions' 
housing strategy. However, the contracts may not provide more 
than 20 percent of the annual operating budget of the 
contracting organization. This requirement unfairly penalizes 
small and local organizations devoted to training and technical 
assistance because they may not have the resources to raise 
enough private or philanthropic capital. Section 103 repeals 
this 20 percent provision.

Section 104. Eligibility of Room Additions for Use by Grandparents and 
        Grandchildren

    Under current law, the term ``housing'' (as used in the 
HOME program) is defined to include Elder Cottage Housing 
Opportunity (ECHO) units that are small, freestanding, barrier-
free, energy-efficient, removable, and designed to be installed 
adjacent to existing one- to four-family dwellings. Whereas 
current HOME funds can only be used for the initial purchase 
and placement costs of ECHO units, H.R. 3995 makes the addition 
of bedrooms an eligible activity under the ECHO program. This 
adaptation will enable elderly relatives to reside with their 
low-income families instead of being placed in nursing homes. 
In some cases, this will also allow grandparents to stay with 
their young grandchildren and will eliminate the need for 
foster care for their grandchildren.

Section 105. Program Year for Matching Contributions

    Participating jurisdictions are currently required to 
provide matching funds of 25 cents for every dollar of HOME 
funds received during a fiscal year, and are required to report 
to HUD on their performance in meeting the matching 
contribution during the fiscal year. Some jurisdictions base 
their plan year on their own fiscal year or some other point in 
time, not necessarily the Federal fiscal year. Section 105 
allows jurisdictions to report on the use of funds based on 
their program year thereby simplifying program administration.

Section 106. Membership of Boards of Eligible Community Housing 
        Development Organizations

    This provision prohibits the Secretary from barring any 
public employee who is in an unelected and non-decision-making 
role from membership on a local board of a community housing 
development organization.

Section 107. Monitoring of Compliance

    This provision allows participating jurisdictions to charge 
compliance monitoring fees to cover compliance monitoring 
costs. HOME participating jurisdictions are required to monitor 
projects and enforce program compliance, but they are not 
allowed to charge monitoring fees. These jurisdictions can use 
administrative funds for monitoring, but administrative funds 
are insufficient to cover the increasing cost of monitoring as 
participating jurisdictions add more projects to their 
portfolio and have to monitor them for 15-20 years, or more. 
States are permitted to charge monitoring fees for Low Income 
Housing Tax Credit properties.

Section 108. American Dream Downpayment

    Subtitle E of the HOME legislation required that the 
General Accounting Office (GAO) carry out a study and report to 
Congress on the ways that HUD and other agencies could provide 
mortgage credit enhancement in ways that improve the 
availability of mortgage financing for affordable housing. The 
report was completed in October 1993. Under this section of 
H.R. 3995, subtitle E would be renamed ``Other Assistance'' and 
its current language would be replaced with language 
authorizing a downpayment assistance initiative under the HOME 
program. This new program within HOME will provide low-income 
families with downpayment assistance in order to achieve the 
goal of homeownership. The initiative requires a separate 
appropriation so that the funding for the downpayment program 
does not affect existing HOME program funding.

Section 109. Homeownership for Municipal Employees

    To qualify as affordable homeownership housing under the 
current HOME program, a property must be the principal 
residence of an owner whose family qualifies as low income at 
the time of purchase. The HOME program would here be amended to 
provide that property qualifies as affordable homeownership 
housing if (1) the property would be the principal residence of 
an owner whose family qualifies as low income at the time of 
purchase of existing housing, at signing of a lease-purchase 
agreement, or at the time of signing a contract for the 
construction of a home; or (2) the property is to be occupied 
by uniformed employees (including policemen, firemen, 
maintenance workers, and teachers) whose income does not exceed 
115 percent (up to 150 percent in high cost areas) of the area 
median. Municipal employees would be eligible for downpayment 
assistance, assistance with closing costs, pre- or post-
purchase counseling, or payments to subsidize the mortgage 
interest rate.

                    TITLE II--FHA MORTGAGE INSURANCE

       Subtitle A--Multifamily Housing and Health Care Facilities


Section 201. Indexing of Multifamily Mortgage Limits

    Specific mortgage limits are currently set for the various 
multifamily housing programs and the limits only change when 
the National Housing Act is amended for that purpose. This 
section amends the National Housing Act and requires the 
Secretary of HUD to index the multifamily mortgage limits each 
year to the annual construction cost indexes of the Bureau of 
the Census of the Department of Commerce. The FY 2002 HUD-VA 
Appropriations Act provided for a 25 percent increase of the 
multifamily loan limits. This increase reflects the increases 
in construction costs over the last ten years. Indexing will 
address future cost increases.

Section 202. High-Cost Areas

    By regulation, HUD may currently increase the statutory 
mortgage limits for multifamily housing loans by 110 percent in 
any geographic area where HUD finds that costs dictate such an 
increase. In addition, on a project-by-project basis HUD may 
increase the mortgage limits by up to 140 percent to account 
for higher costs. This section amends the National Housing Act 
to permit HUD to increase the multifamily mortgage limits by 
140 percent in a geographic area, and by 170 percent on a 
project by project basis.

Section 203. Standards and Need for Health Care Facility Mortgage 
        Insurance

    Under Sections 232 and 242 of the National Housing Act, HUD 
may not currently insure any nursing home (section 232) or 
hospital (section 242) mortgage unless HUD has received State 
certification that (1) there is a need for such nursing home or 
hospital, and (2) there are reasonable State or local minimum 
standards of licensing and operating such nursing homes or 
hospitals. If no State agency exists, or if the State agency 
exists but is not empowered to provide a certification that 
there is a need for the nursing home or hospital, then HUD may 
not insure any mortgage under these sections unless the State 
in which the institution is (or will be) located has conducted 
or commissioned the preparation of an independent study of the 
market need and feasibility of the proposed institution.
    This section updates existing provisions to address the 
fact that State laws have evolved over time, and assures that 
no health care facilities in any State will be automatically 
prevented from applying for FHA mortgage insurance. This 
section establishes an alternate method for the determination 
of project need and feasibility for States in which procedures 
do not exist. In addition, it directs the HUD Secretary, in 
conjunction with the Secretary of Health and Human Services, to 
require satisfactory evidence that the nursing home or hospital 
would be located in an area with reasonable minimum standards 
of licensure and methods of operation for these institutions, 
and would have to require satisfactory assurance that such 
standards would be applied and enforced with respect to the 
institution. HUD would have to establish the means for 
determining the need and feasibility for the institution. If 
the State has an official procedure for determining the need 
for institutions, then HUD would have to also require that such 
procedure be followed before the application is submitted, and 
the application would have to document that need has also been 
established under that procedure.

Section 204. Hospital Mortgage Insurance Loss Mitigation Demonstration 
        Program

    This section authorizes HUD to carry out a program to 
demonstrate the effectiveness of loss mitigation actions for up 
to 3 hospitals which are insured by FHA. Authorized loss 
mitigation activities include a partial claim payment, 
temporary provision of operating funds, and assistance for 
capital improvements, including conversion of excess hospital 
capacity to related use. To be eligible for assistance a 
hospital would have to have secured binding commitments of 
matching funds of at least 10 percent of the cost of the 
assistance and have met any applicable State certificate of 
need or licensing requirement. The total assistance would be 
limited to no more than 30 percent of a hospital's outstanding 
indebtedness to HUD. The demonstration would terminate on 
December 31, 2004. HUD would be required to submit a report to 
Congress analyzing the program and showing the extent to which 
the assistance reduced the net cost to the FHA General 
Insurance Fund.

                   Subtitle B--Single Family Housing


Section 221. Downpayment Simplification

    In 1998, Congress enacted legislation that allows HUD to 
use a simplified formula for calculating the downpayment on 
FHA-insured one to four family properties.

Section 222. Reduced Downpayment Requirements for Loans for Teachers 
        and Public Safety Officers

    Currently, a borrower's downpayment may range between 1.25 
percent and 2.85 percent of the value of the property. In 
addition, borrowers are required to pay an up front mortgage 
insurance premium (the actual amount is determined 
administratively). This section provides the HUD Secretary with 
authority to reduce downpayment requirements to at least one 
percent off the loan amount for FHA insured mortgages. 
Qualified borrowers are teachers or public safety officers.
    Teachers, teacher's assistants, and public safety officers 
would be exempt from payment of the up front mortgage insurance 
premium. If the borrowers remained as teachers, teacher's 
assistants, or public safety officers for less than 5 years, 
the borrowers would have to pay a prorated portion of the 
insurance premium that would have to be paid in the absence of 
the exemption.

Section 223. Community Partners Next Door Program

    Under section 204(h) of the National Housing Act, areas 
that have very low income (less than 60 percent of median), 
high concentrations of defaults and foreclosures on FHA-insured 
single-family homes, or low homeownership rates relative to the 
metropolitan area, may be designated as revitalization areas. 
HUD is directed to dispose of HUD-owned foreclosed property in 
a manner that promotes the revitalization of such areas through 
expanded homeownership opportunities. Local governments and 
nonprofit organizations are preferred purchasers under the 
program and they must sign binding agreements that the homes 
will be used in conjunction with a home ownership plan for the 
area. Non-preferred purchasers must sign binding agreements to 
meet specified homeownership goals and agree to rehabilitate 
the property to comply with minimum occupancy standards. The 
foreclosed properties may be sold to preferred purchasers at a 
discount from the appraised value.
    This section provides the HUD Secretary with authority to 
discount HUD-held single family properties by 50 percent to 
qualified teachers and public safety officers. For a sale 
financed through an FHA-insured loan, the downpayment would be 
$100. The borrower would have to use the property as a primary 
residence for 3 years and HUD would have to issue regulations 
to prevent undue profit from the resale of the property in 
violation of this provision. HUD would have authority to 
suspend the program if needed because of fraud and other 
issues.

Section 224. Public Safety Officer Home Ownership in High-Crime Areas

    This section authorizes the Secretary to establish a three 
year pilot program for no-downpayment FHA insured loans to 
qualified public safety officers who purchase homes in 
designated areas identified by the local government as high-
crime activity areas.

Section 225. Hybrid Adjustable Rate Mortgages

    Section 251(d) of the National Housing Act provides that, 
for adjustable rate mortgages under which the interest rate is 
fixed for the first 3 or more years, the initial interest rate 
adjustment is limited to 1 percentage point if the interest 
rate is fixed for the first 5 or fewer years.
    This section eliminates the interest rate restrictions on 
5/1 Hybrid FHA Adjustable Rate Mortgages (ARMs). Hybrid ARMs 
are mortgages that have an initial fixed interest rate for a 
period of three, five, seven, or ten years and then the 
interest rate adjusts annually thereafter. Congress capped the 
first interest rate adjustment for 5/1 hybrid ARMS at 1 
percent. A maximum 1 percent increase in the interest rate at 
the time of the first rate adjustment for a 5/1 hybrid ARM does 
not offer sufficient interest rate flexibility for a lender to 
offer this type of hybrid ARM at a lower interest rate than a 
traditional 30-year fixed rate mortgage.

Section 226. Uniform National Loan Limit For Home Equity Conversion 
        Mortgages

    This section sets uniform national loan limits for reverse 
mortgages used by senior homeowners. Senior homeowners can 
convert equity in their home into monthly cash payments or a 
line of credit through the use of reverse mortgages. Currently 
home equity conversion mortgage loans are subject to the 
county-by-county FHA loan limits for traditional mortgages. 
Seniors living in low-cost areas could be subject to disparate 
treatment. For example, a senior living in Des Moines with a 
home worth $175,000 can get a FHA reverse mortgage for only 
$144,336, which is the FHA mortgage limit in Des Moines. 
However, a senior living in Los Angeles with a home worth the 
same amount can get a reverse mortgage for the full $175,000 
because the FHA mortgage limit in Los Angeles is $237,500.

Section 227. Prohibition of Investor and Nonprofit Owners under 
        Rehabilitation Loan Program

    In general, FHA home loans insured under section 203 of the 
National Housing Act are currently limited to borrowers who 
will occupy the property as their principal residences. One of 
the exceptions to this policy is for borrowers who obtain 
section 203(k) loans to purchase and rehabilitate homes. As 
recommended by the HUD Inspector General, this provision would 
remove mortgagors and co-mortgagors from the exemption list and 
therefore require owner-occupancy of any FHA insured home under 
the 203(k) program.

Section 228. Rehabilitation Loan Advances

    To be eligible for insurance under section 203(k) of the 
National Housing Act, a rehabilitation loan must meet four 
conditions: (1) the loan may not exceed the FHA loan limit for 
the area, (2) the borrower and lender must agree on the loan 
interest rate, (3) the loan must be an acceptable risk, and (4) 
and the loan must comply with other terms and conditions as 
prescribed by HUD.
    Under this section 203(k) of the National Housing Act, an 
eligible FHA insured loan would include (1) a principal loan 
amount equal to the rehabilitated value of the structure, (2) 
an agreed interest rate, (3) acceptable underwriting risk, and 
(4) compliance with other departmental terms. During the 
rehabilitation phase period, a consultant or inspector is 
responsible for reviewing and approving the work of the 
mortgagor's contractors before making advance payments to the 
general contractor or borrower. As recommended by the HUD 
Inspector General, this provision would also require that the 
lender incorporate into the loan agreement its responsibility 
to select an inspector or consultant who would act as an agent 
for the lender in approving advances under the loan.

Section 229. Nonprofit Purchasers under Property Disposition

    Sections 204(g) and 204(h) of the National Housing Act 
authorize HUD to dispose of one- to four-family property that 
HUD acquires by default of borrowers. This provision would 
require that nonprofit organizations be approved organizations 
as required under section 501(c)(3) of the Internal Revenue 
Code of 1986 and that the nonprofit organization certify 
annually that it has been apprised and understands the 
applicable rules and guidelines of HUD.

Section 230. Extension of Holding Period

    Section 912 of the Housing and Urban Development Act of 
1970 was created in the 91st Congress to provide authority to 
fine or imprison a purchaser of 1 to 4 unit buildings if there 
was a pattern or practice of purchasing, insuring through FHA 
and then subjecting the loan to default within the first year 
of purchase. This provision, as recommended by the HUD 
Inspector General, would extend that one year period to 
eighteen months.

Section 231. Mandatory First-Time Homebuyer Counseling for Properties 
        in High Foreclosure Neighborhoods

    The National Housing Act provides that all lenders must 
provide notice of the availability of homeownership counseling 
to certain prospective first-time homebuyers and to certain 
homebuyers who are delinquent on their mortgage loans. This 
section amends the National Housing Act to require HUD to carry 
out a pilot program to determine whether defaults and 
foreclosures would be prevented in high foreclosure areas if 
first-time homebuyers were required to complete a homeownership 
counseling program prior to obtaining an FHA-insured loan. HUD 
is directed to select a pilot area where the rate of 
foreclosures on FHA-insured loans exceeds the lesser of 150 
percent of the national early default claim rate on such loans 
or the national early default claim rate on such loans in the 
area served by the HUD field office where the pilot area is 
located. During the 1-year period beginning within 6 months of 
enactment of this bill, a first-time homebuyer will not be able 
to obtain an FHA-insured loan within the pilot area unless the 
homebuyer had completed a HUD-approved homeownership counseling 
class regarding the responsibilities and financial management 
involved in homeownership. HUD is directed to submit a report 
describing the effect that the pilot program had on defaults 
and foreclosures and to make recommendations regarding 
implementing the program on a nationwide basis.

Section 232. Disposition of Assets in Revitalization Areas

    Title VI of the FY 1999 HUD Appropriations Act (Public Law 
105-276) amended the National Housing Act to provide HUD with 
additional flexibility in disposing of its inventory of single 
family homes acquired through foreclosure. Section 602 of the 
National Housing Act requires HUD to designate certain areas as 
``revitalization areas'' if they meet one of the following 
conditions: (1) the median household income of the area is less 
than 60 percent of median household income of the State (or of 
the metropolitan area if the area is located in a metropolitan 
area); (2) the area has a disproportionately high concentration 
of foreclosures on FHA-insured homes; or (3) the homeownership 
rate in the area is substantially below the homeownership rate 
for the metropolitan area. HUD is required to carry out a 
program under which foreclosed properties in these areas are 
sold in a manner that expands homeownership opportunities and 
contributes to revitalization of the areas. Units of local 
government and nonprofit organizations that agree to use the 
property in conjunction with homeownership plans are preferred 
purchasers of the property and may purchase properties in bulk 
at a discount from market value. This section directs HUD to 
continue to administer the program, to renew all contracts, and 
to enter into new contracts.

  TITLE III--SUPPORTIVE HOUSING FOR THE ELDERLY AND DISABLED FAMILIES

Section 301. Authorization of Appropriations for Grants for Repairs to 
        Federally Assisted Housing for the Elderly

    Section 301 authorizes appropriations of such sums as may 
be necessary for FY 2003 and 2004 to make grants to non-profit 
owners of Federally assisted housing for the elderly which is 
being converted to assisted living facilities. These grants are 
to be made for needed capital repairs to rehabilitate, 
modernize, or retrofit aging structures, common areas, or 
individual dwelling units.

Section 302. Service Coordinators for Supportive Housing for Persons 
        with Disabilities

    Current law does not include section 811 projects in the 
definition of Federally-assisted projects requiring service 
coordinators. This section expands eligible projects to include 
section 811 projects.

Section 303. Demonstration Program for Elderly Housing for 
        Intergenerational Families

    This section authorizes HUD to set up a demonstration 
program to increase the supply of intergenerational housing, 
including elder cottage housing opportunity units, in 
connection with the section 202 supportive housing program for 
the elderly. Intergenerational is defined as a family that has 
a head of household who is an elderly person (62 years or 
older). HUD is to see that families participating in the 
demonstration program receive needed services, which may be 
provided by other agencies. Grants are to be made competitively 
for a total of two to four intergenerational projects. The 
program is to be funded with section 202 appropriated funds set 
aside for the program as needed in FY 2003 through FY 2006. 
Grants are to be made competitively to nonprofits for a total 
of two to four intergenerational projects.

Section 304. Treatment of Projects Subject to Foreclosure

    This section requires that occupancy by elderly and 
handicapped families of maximum set incomes continue in section 
202 projects, which have undergone foreclosure. Occupancy is to 
continue until the expiration date of the original loan term. 
After foreclosure, the maximum income limit for families 
occupying units may be increased to 80 percent of area median 
income if that level is necessary for the financial soundness 
of the project. If a foreclosed property is to be sold or 
disposed of, HUD must give right of first refusal to purchase 
the property to a qualified nonprofit organization. HUD is to 
issue regulations for this section.

         TITLE IV--SECTION 8 RENTAL HOUSING ASSISTANCE PROGRAM

Section 401. Housing Voucher Demonstration

    Authorizes appropriations for a housing voucher 
demonstration program to provide 5,000 incremental vouchers for 
FY 2003 and FY 2004. These vouchers are to be used exclusively 
for extremely low-income families, in newly constructed or 
substantially rehabilitated housing. Extremely low-income 
families are defined as those families whose incomes do not 
exceed 30 percent of the area median income, or 30 percent of 
the national non-metropolitan median income. This voucher could 
be combined with any capital subsidy program, such as Low 
Income Housing Tax Credits, HOME, or CDBG.

Section 402. Flexibility to Assist Hard-to-House Families

    Beginning in 2003, authorizes Public Agencies (PHA's) to 
use up to 2 percent of funds allocated to them in any given 
year to directly support their section 8 housing choice voucher 
program for counseling, downpayment assistance, rental security 
deposits, and other activities that assist families in finding 
suitable housing.

Section 403. Clarification on Prohibition on Re-Screening of Tenants

    This section clarifies re-screening provisions for all 
tenants in Public Housing Authority (PHA) projects facing 
housing conversion including opt-outs and prepayments. Under 
this section, PHAs are prohibited from re-screening existing 
section 8 tenants under different criteria than were used to 
determine their eligibility for continued occupancy. In 1999, 
Congress passed unified authority requiring HUD to provide 
``enhanced vouchers'' for all tenants facing housing conversion 
actions. Congress further clarified that tenants receiving 
these protections may elect to remain in their units. HUD's 
section 8 Renewal Policy Guide requires owners to accept these 
enhanced vouchers. The tenant is provided this protection until 
the tenant violates his or her lease.

Section 404. PHA Administration Fees

    Beginning in FY 2003, the Secretary of HUD may pay 
incentive fees to public housing agencies that succeed in 
achieving high or substantially improved performances on 
specified program requirements or program goals, as established 
in the section 8 Management Assessment Program or through any 
other assessment program or regulation issued by the Secretary. 
The Secretary may set limitations on the amount of the fees to 
be paid.

Section 405. Ensuring Ability to Use Enhanced Vouchers

    In the case of an eligibility event such as a prepayment of 
the mortgage or if an owner opts out of participating in a 
housing program, that owner of a multifamily housing project is 
required to lease to a family residing in the project who is 
provided with an enhanced voucher.

Section 406. Treatment of Over Housed Assisted Families

    Amends section 8(o) of the United States Housing Act of 
1937 to prohibit public housing agencies from moving tenants 
from a unit where the tenant has faced a significant live 
event, such as the death of a spouse or a child going to 
college, and the PHA believes that the unit is inappropriately 
sized, unless there is a suitable unit in the same building or 
in the immediate neighborhood. These provisions are designed to 
preclude causing major personal upheaval, particularly for 
elderly residents, whose spouse has died and their two-bedroom 
apartment can not be replaced in the same building or on that 
block.

Section 407. Extension of Manufactured Housing Demonstration Program

    This provision extends the 1999 manufactured homes section 
8 demonstration program through FY 2004, and requires HUD to 
submit a report on the program to Congress by March 31, 2005. 
The program was due to terminate in FY 2001. Section 557 in 
Public Law No. 105-276 allowed owners of mobile homes who rent 
spaces in mobile home parks to receive section 8 vouchers 
directly if their landlord refused to accept section 8.

Section 408. Extension of Project-Based Section 8 Contract Renewals

    Under current law, rental reimbursement levels for expiring 
section 8 moderate rehabilitation contracts that are being 
renewed are based on the lesser of comparable market rents in 
the area or the level of fair market rents. This section amends 
the Multifamily Assisted Housing Reform and Affordability Act 
of 1997 to revise the (rental) reimbursement levels for 
expiring project-based section 8 contracts. Instead of basing 
rental levels on the lesser of adjusted existing, fair market 
rents, which may result in lower rent levels for renewed 
contracts, the provision would set rents for covered projects 
undergoing contract renewal at the current rent levels in 
effect for that project immediately prior to the renewal. After 
the initial renewal of a contract, the Secretary of HUD would 
annually adjust rent levels based on operating cost adjustment 
factors.

Section 409. Inspection of Units

    This section permits a PHA to make assistance payments for 
a dwelling unit without first inspecting it, if a reasonable 
number of units in that building had been inspected within 6 
months prior to the date on which payment is made, and no major 
deficiencies were found, and if the unit itself is inspected no 
later than 30 days after payment is made. This section would 
also permit a PHA with a large jurisdiction to conduct unit 
inspections on a geographical basis, nine to fifteen months 
after the previous inspection rather than annually.

Section 410. Escrow of Tenant Rent in Cases of Owner Failure to 
        Maintain Unit

    Section 410 permits section 8 tenants to suspend their 
rental payments to a landlord whose rental payments from a PHA 
have been suspended because of failure to maintain a property 
in compliance with section 8 standards. The tenant's share is 
to be placed in an escrow account to be released to the owner 
if he complies with standards within a given period of time. If 
the owner does not comply with standards, the escrow account 
would be released to the tenant to be used to move and for a 
rental deposit in another unit.

Section 411. Project-Based Vouchers Modifications

    This section permits PHAs to expand the number of project-
based units that can occupy a building in a non-impacted area, 
and it allows them to increase the number of project-based 
section 8 units in a project occupied primarily by elderly or 
disabled persons, projects with no more than 25 dwelling units, 
or assisted housing consisting of single-family properties. 
This provision also permits PHAs to use section 8 project-based 
vouchers for assistance in HOPE VI projects or projects 
assisted with public housing capital funds. A waiting list may 
be maintained by PHAs which includes families that are applying 
for tenant-based assistance in the same waiting lists as those 
for project-based housing. Preference may be given for 
occupancy in half of the vacant units in a building to those 
applying for tenant-based assistance unless preferences for 
occupancy were designated for persons with disabilities under 
the PHAs annual housing plan.

Section 412. Expanded Use of Enhanced Vouchers

    Current law provides enhanced vouchers so tenants can 
remain in a building that has opted out of the section 8 
program. This section provides enhanced section 8 vouchers (up 
to 150 percent of the Fair Market Rent (FMR) for tenants who 
are forced to move because their unit is no longer available 
for rental use due to condo or coop conversions. The resident 
would be able to use the enhanced voucher in the same or 
neighboring zip code.

Section 413. Demonstration Program for Rental Assistance for 
        Grandparent-Headed or Relative-Headed Families

    This section authorizes HUD to conduct a demonstration 
program to determine the feasibility of setting aside section 8 
assistance to eligible families and supportive services 
tailored to their needs. The demonstration program is to 
provide voucher assistance to participating families under this 
program for FY 2003 through FY 2006. The program calls for two 
to four agencies to participate in the program, and they are to 
be selected based on their ability to provide services to the 
families as well as national geographical diversity. The 
demonstration program is to be funded by funds made available 
for voucher assistance in FY 2003 through FY 2006, through 
amounts reserved from the funding by HUD for this purpose.

Section 414. Eligibility of Grandparent-Headed and Relative-Headed 
        Families for Family Unification Assistance

    Under the family unification program, HUD is authorized to 
provide tenant-based assistance to a family when it is 
certified that lack of adequate housing is the primary factor 
in the placement of the family's child or children in out-of-
home care or is the primary factor in the delayed discharge 
from such care. The law would be amended to define ``covered 
family'' to include a child or a grandparent or relative who is 
raising the child.

Section 415. Increased Payment Standard

    Under current law, PHAs may increase payment standards up 
to 110 percent of Fair Market Rent (FMR) without HUD approval. 
This section permits PHAs that have extended search times for 
voucher recipients for an additional 90 days and still have a 
voucher success rate under 80 percent, and PHAs that have 
concentrations of voucher holders in poverty areas, to increase 
the voucher standards for units in a market area to between 110 
and 120 percent of the FMR for the area without first obtaining 
approval by HUD. To qualify for this increase in payment 
standards, the voucher payment standards must have already been 
set at 110 percent or higher for the units in the area for six 
months prior to setting the new standard. Also, a PHA may 
establish a payment standard of 120 percent of FMR for a unit 
to be occupied by a disabled person without first receiving 
approval by HUD. Finally, payment standards for the disabled 
could be increased to 150 percent with the approval of HUD.

Section 416. Protection of Innocent Tenants

    Section 6(l)(c) of the United States Housing Act of 1937, 
known as ``one strike and out,'' calls for the eviction of any 
tenant in assisted housing if a tenant, member of the tenant's 
household, guest of the tenant, or person in the tenant's 
control engages in drug-related activity or criminal activity 
that threatens the health, safety, or right of peaceful 
enjoyment of the premise by other tenants. This section amends 
the ``one strike and out'' provision by including protections 
against eviction for tenants or members of tenants' family who 
are victims of domestic violence or dating violence. This 
section does not prevent PHAs from evicting those who engage in 
acts of physical violence against family or household members.

                        TITLE V--PUBLIC HOUSING

                     Subtitle A--General Provisions


Section 501. Joint Ventures

    This section clarifies that the Federal government's role 
in review and approval of Public Housing Agency activities does 
not extend to joint ventures, partnerships, or business 
arrangements of a PHA or its subsidiary if Federal funds or 
income derived from Federal funds are not used in these 
ventures. This provision would allow greater flexibility to the 
PHA to engage in revenue enhancement sources of income without 
undue regulation.

Section 502. Third-Party Public Housing Assessment System

    This section grants HUD the authority to develop a 
prototype of an alternative evaluation system that assesses the 
overall performance of PHAs in all major areas of management 
operations and in meeting their obligations. If funds are 
available, HUD is to enter into contract with a public, 
private, or nonprofit entity to perform this assessment in 
consultation with public housing residents, organizations and 
individuals who are experienced in managing public housing, 
real estate managers, and State and local governments. HUD is 
required to submit a report one year after the contract is made 
detailing their findings and recommendations. The third-party 
system would not replace, alter, or terminate the applicability 
of the public housing assessment system currently in operation.

Section 503. Public Housing Agency Plans for Certain Small Public 
        Housing Agencies

    PHAs receiving assistance under section 8 or Public Housing 
programs are required to submit annual agency plans to HUD each 
fiscal year. This section would exempt small Public Housing 
Authorities from submitting annual agency plans for FY 2003 
through FY 2005 provided they have not been designated as 
troubled authorities, and the agency can assure HUD the 
resident advisory boards and tenants would be given ample 
opportunities to express their thoughts and be notified of 
goals, policies, and objectives of the agency between FY 2003 
and FY 2005. Small PHAs are defined as those that administer 
100 or fewer public housing dwellings. This section also 
requires a report by the Comptroller General by September 30, 
2004 describing and analyzing the administration, financial, 
and other burdens to small housing agencies.

Section 504. Affordable Assisted Living Facilities Demonstration 
        Program

    This provision authorizes HUD to carry out a demonstration 
program to make grants to public housing authorities for the 
capital cost of converting public housing to assisted living 
facilities, and to provide service coordinators for these 
facilities. The program is limited to three demonstration 
projects. Applicants must provide sufficient evidence that 
there will be adequate funding for services to be provided to 
tenants in the converted project.

Section 505. Protection of innocent tenants

    Section 6(l)(1) of the United States Housing Act of 1937, 
known as ``one strike and out,'' calls for the eviction of any 
tenant in public housing if a tenant, member of the tenant's 
household, guest of the tenant, or person in the tenant's 
control engages in drug-related activity or criminal activity 
that threatens the health, safety, or right of peaceful 
enjoyment of the premise by other tenants. This section amends 
that section by including protections against eviction for 
tenants or members of tenants' family who are victims of 
domestic violence or dating violence. This section does not 
prevent PHAs from evicting those who engage in acts of physical 
violence against family or household members.

               Subtitle B--Hope VI Revitalization Program


Section 521. Selection Criteria

    This section expands the selection criteria for HOPE VI 
awards to ensure that smaller public housing agencies are 
eligible for large-scale rehabilitation awards by striking 
``large-scale developments'' and adding additional criteria for 
selection including the ability to commence and complete a 
revitalization plan expeditiously; minimize temporary and 
permanent displacement of current residents, and create more 
project-based units available to persons eligible for public 
housing in markets where it is needed.

Section 522. Authorization of Appropriations

    This section authorizes appropriations for the HOPE VI 
program through 2004.

Section 523. Extension of Program

    HOPE VI is scheduled to sunset at the end of FY 2002. This 
section authorizes appropriations for the program through 
September 30, 2004.

Section 524. HOPE VI Grants for Assisting Affordable Housing through 
        Main Street Projects

    This section amends current law by permitting PHAs to use 
HOPE VI grants to provide assistance to smaller communities in 
developing affordable rental and homeownership housing for 
occupancy by low-income families in connection with a Main 
Street revitalization or redevelopment project. Smaller 
communities are defined as communities with populations of 
30,000 or less, or communities served by PHAs administering 100 
or fewer units of assisted housing. Grants can only be made for 
assisting affordable housing located in a Main Street project 
or commercial area. Any redevelopment or revitalization must 
comply with historic preservation guidelines for the area. HUD 
is authorized to provide up to 5 percent of HOPE VI 
appropriations in any given fiscal year for grants under this 
section. The Secretary is to establish criteria for the 
awarding of grants, and cost limits for projects. However, 
maximum grants for the purpose expressed in this section in any 
given fiscal year may not exceed $1 million for any smaller 
community.

                  TITLE VI--HOMELESS HOUSING PROGRAMS

Section 601. Interagency Council on the Homeless

    This provision extends the authorization for the 
Interagency Council on the Homeless through FY 2004, which 
coordinates work on homelessness among Federal agencies. The 
title designation is changed to ``United States Interagency 
Council on Homelessness''.

Section 602. Federal Emergency Management Agency Food and Shelter 
        Program

    This section extends the authorization for FEMA's Emergency 
Food and Shelter Program through FY 2004, which functions as a 
homeless prevention program by quickly providing assistance to 
families in crisis.

Section 603. Emergency Shelter Grants Program

    This section extends the authorization for HUD's Emergency 
Shelter Grants Program through FY 2004, providing capital and 
operating expenses for emergency shelter.

Section 604. Supportive Housing Program

    This provision extends the authorization for HUD's 
Supportive Housing Program through FY 2004, providing flexible 
grants to State and local governments and faith-based and 
community organizations for temporary and permanent housing and 
support services for homeless people. It also funds renewals of 
contracts for permanent housing through the Housing Certificate 
Fund, for one year at a time, through FY 2004. Current law 
requires applications for renewal funding to compete with other 
homelessness programs, continually putting housing stability at 
risk for extremely vulnerable tenants. It also adds a set-aside 
for permanent housing by requiring that not less than 30 
percent of funds for homeless assistance (except for amounts 
used for contract renewals) must be used for permanent housing 
and provides that ``permanent housing activities'' includes 
permanent housing designed primarily to serve homeless families 
with children. Finally, this section eliminates the cap on 
capital expenses for supportive housing.

Section 605. Section 8 Assistance for Single Room Occupancy (SRO) 
        Dwellings

    This section extends the authorization for HUD's section 8 
Single Room Occupancy (SRO) Moderate Rehabilitation Program 
through FY 2004.

Section 606. Shelter Plus Care

    This section extends the authorization for HUD's Shelter 
Plus Care Program through FY 2004. From FY 2003 forward, 
Shelter Plus Care renewals could be funded through section 8 
appropriations. In addition, renewals, for one year terms, 
would be authorized as necessary, through FY 2004. This section 
also requires that those renewals meet local housing safety and 
quality standards as reviewed and approved by HUD.

Section 607. Housing for Domestic Violence and Sexual Assault Victims

    This section also authorizes the appropriation of such sums 
as necessary from FY 2003 through 2007 to provide housing 
assistance to victims of domestic violence, stalking, or sexual 
assault when it has been determined that relocation would 
assist in avoiding future incidents. The assistance would 
include supportive housing under the McKinney-Vento Homeless 
Assistance Act, tenant-based rental assistance, assistance with 
the security deposit or first month's rent, or project-based 
transitional housing. Organizations receiving assistance would 
have to provide 25 percent matching funds from other sources. 
At least 10 percent of the funds available for these uses would 
be set aside for grants to Indian tribes or Indian tribal 
organizations.

Section 608. National Goal of Ending Homelessness

    This section amends the McKinney-Vento Homeless Assistance 
Act to provide that Congress declares a National goal of ending 
homelessness within 10 years after enactment of H.R. 3995.

Section 609. Amendments to Table of Contents

    This section makes clerical amendments to the table of 
contents of the McKinney-Vento Homeless Assistance Act.

                   TITLE VII--NATIVE AMERICAN HOUSING

Section 701. Reauthorization of Native American Housing and Self 
        Determination Act of 1996

    Section 108 of the Native American Housing Assistance and 
Self Determination Act of 1996 (NAHASDA) authorizes 
appropriations for grants through September 30, 2001. Section 
605(a) authorizes commitment for loan guarantees through FY 
2001, section 605(b) authorizes credit subsidy through FY 2001, 
and section 703 authorizes appropriations for training and 
technical assistance through FY 2001. This section amends 
NAHASDA to authorize appropriations for grants, loan 
guarantees, credit subsidy, and training and technical 
assistance for FY 2003 and FY 2004.

Section 702. Comprehensive Planning Under Native American Housing Block 
        Grant Program

    This section amends NAHASDA to permit recipients to use a 
percentage of their grant amounts for comprehensive housing and 
community development planning activities.

Section 703. Lands Title Report Commission

    This section removes the requirement that establishment of 
the Lands Title Report Commission be subject to prior 
appropriation, permitting the Secretary to appoint the 
commissioners.

                  TITLE VIII--HOUSING IMPACT ANALYSIS

Section 801. Applicability

    Under Executive Order 12866 of September 30, 1993, by the 
President, Regulatory Planning and Review, section 1, each 
Federal executive branch agency must submit its ``regulatory 
plan'' of the most ``significant regulatory actions'' it 
expects to issue in the coming fiscal year to the Office of 
Management and Budget for review. This section requires Federal 
agencies, with some exceptions, to certify (with documentation) 
in the Federal Register and to the HUD Secretary that any 
proposed or final rule would not have a significant negative 
impact on housing affordability.

Section 802. Exception for Certain Banking Rules

    The current Executive Order does not apply to certain rules 
and regulations, for example, those pertaining to military or 
foreign affairs functions. This title would not apply to any 
proposed or final rule relating to the safety and soundness of 
a Federally insured depository institution, credit union, 
Federal home loan bank, government sponsored enterprise, a Farm 
Credit institution or foreign bank or their branches, agencies 
or their representative offices operating in the United States.

Section 803. Statement of Proposed Rulemaking

    Currently, the regulatory plans submitted by agencies must 
show why the proposed actions are needed, provide estimates of 
the anticipated costs and benefits, and alternatives to be 
considered. Unless the agency has made certification, the 
agency shall publish a general notice of proposed rulemaking 
for any proposed rule. The notice must state the text of the 
proposed rule and request any interested persons to submit to 
the agency any written analyses, views and any specific 
alternatives to the proposed rule. The agency must also provide 
an opportunity for interested persons to comment prior to 
promulgation of the final rule. In addition, the agency is 
required to prepare and make available an initial housing 
impact analysis in accordance with section 804.

Section 804. Initial Housing Impact Analysis

    For each proposed rule, the initial housing impact analysis 
will consist of a description of the reasons an agency is 
taking that particular action, the objectives and legal basis 
for such rule, and a description where feasible of the estimate 
of the extent to which the rule would increase the cost or 
reduce the supply of housing or land for residential 
development. The initial analysis must also include a 
description of the relevant Federal rules, which may be 
duplicative or conflict with the proposed rule.

Section 805. Final Housing Impact Analysis

    Whenever an agency promulgates a final rule after 
publication of a general notice of proposed rulemaking, the 
agency must prepare a final housing impact analysis. Each final 
housing impact analysis will contain a statement of the need 
for and objectives of the rule; a summary of the significant 
issues, analyses and alternatives to the proposed rule raised 
during the public comment period in response to the proposed 
rule and initial housing impact analysis; a description of and 
an estimate of the extent to which the rule will impact housing 
affordability or an explanation of why no such estimate is 
available. The agency is required to make copies of the final 
housing impact analysis available to members of the public and 
must publish the analysis in the Federal Register.

Section 806. Avoidance of Duplicative or Unnecessary Analyses

    An agency may perform the analyses required by sections 804 
and 805 in conjunction with any other agenda or analyses 
required by any other law, executive order, or directive. In 
order to avoid unnecessary duplication, an agency may consider 
a series of closely related rules as one rule for purposes of 
section 804 and 805 requirements.

Section 807. Preparation of Analyses

    Section 6 of Executive Order 12866 of September 30, 1993, 
requires ``to the extent feasible'' a quantification of the 
costs and benefits of the analysis. In complying with sections 
804 and 805, an agency may use either a quantifiable or 
numerical description of the effects of a proposed rule or 
alternatives to the proposed rule, or more general descriptive 
statement if quantification is not practicable or reliable.

Section 808. Effect on Other Law

    Under section 9 of Executive Order 12866, nothing in the 
Order is to be construed as displacing the agencies' authority 
or responsibilities, as authorized by law. The requirements of 
sections 804 and 805 do not alter in any way otherwise 
applicable law to agency action.

Section 809. Procedure for Waiver or Delay of Completion

    In section 8 of Executive Order 12866, an agency is 
prohibited from publishing or issuing any regulatory action 
that has not been approved or waived by the Office of 
Information and Regulatory Affairs of the Office of Management 
and Budget. Except for emergencies that make compliance with 
section 805 impractical if any agency has not prepared a final 
housing impact analysis within 180 days from the date of 
publication of the final rule, the rule would lapse and have no 
force or effect.

Section 810. Definitions

    This section defines certain terms used in this title.

Section 811. Development

    This section provides that not later than one year after 
enactment, the Secretary of Housing and Urban Development must 
develop model initial and final housing impact analyses under 
this title which will be published in the Federal Register. The 
model analyses shall define the primary elements of a housing 
impact analyses and instruct other agencies on how to carry out 
and develop the analyses required under sections 804 and 805.

Section 812. Judicial Review

    This section provides that any agency findings under this 
title would not be subject to judicial review by reason of this 
title.

                    TITLE IX--OTHER HOUSING PROGRAMS

Section 901. GNMA Guarantee Fee

    Currently, Ginnie Mae charges an annual fee of six basis 
points on each mortgage that it guarantees. In addition, the 
1998 Higher Education Act Amendments (Public Law No. 105-244) 
included a provision which would prospectively increase by 50 
percent (to 9 basis points) the annual fee charged beginning in 
FY 2005. This section repeals the scheduled increase to nine 
basis points in the GNMA guaranty fee included in Public Law 
105-244.

Section 902. Housing Counseling Programs

    Section 902 designates a single office in the Department of 
HUD to establish, coordinate, and administer all requirements, 
standards, and performance measures that relate to housing 
counseling, homeownership counseling, mortgage-related 
counseling, and rental housing counseling.

Section 903. Assistance for Self-Help Housing Providers

    Currently, SHOP grants are made to nonprofits to purchase 
and improve home sites for sweat equity and volunteer-based 
home-ownership programs such as Habitat for Humanity. There is 
a limit of $10,000 in average assistance per home. The grants 
must be used within 24 months. This section authorizes SHOP 
through FY 2004. In addition, the allowed average assistance 
per unit would be increased to $15,000 to reflect increased 
land and infrastructure costs since the creation of the program 
in 1996. The HUD Secretary could extend the time limit for 
using the funds to 48 months in extraordinary circumstances.

Section 904. Housing Opportunities for Persons With AIDS

    HOPWA, a housing program designed specifically to assist 
individuals diagnosed with HIV/AIDS and their families, is 
authorized under the Cranston-Gonzalez National Affordable 
Housing Act. The program's authorization expired at the end of 
FY 1994. This section reauthorizes the program through 2004.

Section 905. Use of CDBG Amounts for Construction of Tornado-Safe 
        Shelter for Manufactured Housing Parks

    Currently, under section 105(a) of the Housing and 
Community Development Act of 1974, there is a long list of 
eligible activities for which CDBG funds can currently be used, 
but ``tornado-safe shelter for manufactured housing parks'' is 
not mentioned specifically. This section makes construction of 
tornado-safe shelter for manufactured housing parks and 
eligible activity under CDBG. The parks must be located in a 
neighborhood consisting predominantly of persons of low and 
moderate incomes.

Section 906. Use of CDBG Amounts to Administer Renewal Communities

    Under the Housing and Community Development Act of 1974, 
CDBG funds can be used to administer Empowerment Zones, but no 
mention is made of ``Renewal Communities.'' Renewal 
Communities, as authorized by Public law 106-554, are to 
benefit solely from tax incentives through their Tax Incentive 
Utilization Plans. This section amends section 105(a) of the 
Housing and Community Development Act of 1974 by adding Renewal 
Communities, created on December 21, 2000 (Public Law 106-554), 
to empowerment zones to allow community development block grant 
funds to be used to administer these designated communities. 
The 2000 law authorized 40 communities throughout the country 
to be selected in a competition, similar in scope and 
objectives of the existing Empowerment Zones.

Section 907. Subsidy Layering Review

    Under current law, government entities are required to 
review the amount of subsidy an assisted housing property 
receives. In some cases, there is confusion when a property 
receives both a government subsidy coupled with a low-income 
housing tax credit. It can often trigger multiple duplicative 
reviews that are costly and time consuming. This can lead to 
delays. This amendment clarifies the responsibility for subsidy 
layering reviews, by having HUD accept the review and 
certification required by tax credit agencies for tax credit 
projects under section 42 of the tax code. This will eliminate 
the confusion and help smooth the approval process and 
completion of the project.

Section 908. Study of Community Renewal Program

    Earlier this year, HUD used 1990 census data to determine 
the eligibility of census tracts for designation of 40 Renewal 
Communities. This section authorizes HUD to conduct a study to 
analyze the extent to which use of 1990 census data, rather 
than 2000 census data, impairs the ability of the Renewal 
Community Program to fully carry out the purposes of the 
program. HUD designated 40 Renewal Communities earlier this 
year, using eligibility for census tract qualification based on 
1990 census data.

Section 909. Correction of Inequities in the Second Round of 
        Empowerment Zones

    First round Empowerment Zones (EZs) were provided Social 
Service Block Grant (SSBG) funding as part of the enabling 
legislation. Round II EZs did not receive SSBG funding. Partial 
funding for Round II EZs has been provided through annual 
appropriations bills. This section authorizes appropriations to 
fund Round II Empowerment Zones, taking into account any 
amounts made from prior appropriation. Also allows EZs to use 
CDBG funds as the non-Federal match for EZ activities.

Section 910. Employment Opportunities in Public and Indian Housing 
        Agencies

    The Housing and Urban Development Act of 1968 requires that 
public housing agencies ``make their best efforts'' to provide 
economic opportunities to low- and very low-income persons when 
awarding contracts. This section requires that contracts of 
$500,000 or more performed in connection with Public Housing 
Capital or Public Housing Operating programs, have a minimum of 
30 percent new employees that are low income or very low 
income.

Section 911. Assistance for Nonprofit Purchasers Preserving Affordable 
        Housing

    This section authorizes sums necessary for HUD to provide 
assistance for operational, working capital, and organizational 
expenses for non-profit organizations to acquire affordable 
housing for the purpose of maintaining its affordability.

Section 912. Homeownership for Municipal Employees

    The Housing and Community Development Act of 1974 has 
homeownership assistance as an eligible activity for Community 
Development Block Grants, for households with incomes up to 80 
percent of area median income. This section expands income 
eligibility from 80 percent to 115 percent of the area median 
income and up to 150 percent in ``high cost'' markets, for CDBG 
homeownership programs for uniformed employees, including 
policemen, firemen, maintenance workers, and teachers.

Section 913. Sense of Congress Regarding HUD Office Of Disability 
        Policy

    Congress recognizes the importance of addressing the needs 
of people with disabilities and asks HUD to: Appoint a 
permanent director to the Office of Disability Policy; examine 
and recommend potential enhancements to the Office; and 
establish a one-stop resource center within HUD for people with 
disabilities.

Section 914. Transfer of Rural Multifamily Rental Housing Projects to 
        Nonprofits and Local Housing Authorities

    Since August 6, 1996, the Housing Act of 1949, as amended, 
provides that the ownership or control of rental housing 
financed under the section 515 program may only be transferred 
if the Secretary of Agriculture determines that the transfer 
would further the provision of housing for low-income families 
and that the transfer would be in the best interests of the 
residents and the Federal government. This section would amend 
section 515 of the Housing Act of 1949 to direct the Secretary 
to encourage the transfer of ownership or control of section 
515 housing to nonprofit organizations and local housing 
authorities, and to encourage and give priority to the funding 
of the renovation of existing projects upon their transfer.

Section 915. Sense of Congress Regarding Consumer Protection and Home 
        Warranties

    The National Housing Act provides that, unless a property 
is approved for FHA mortgage insurance prior to the beginning 
of construction, an FHA-insured mortgage on the property may 
not exceed 90 percent of the property's value unless (1) the 
property is covered by a warranty plan acceptable to HUD or (2) 
construction was completed more than one year prior to the 
application for the FHA-insured loan. In October 2001, HUD 
issued Mortgagee Letter 2001-27 which expanded the definition 
of ``pre-approval'' by noting that it will accept the issuance 
of a building permit by a local jurisdiction as evidence of 
pre-approval. In such cases, a HUD-approved 10-year warranty 
plan will not be required. Based on the findings that 77 
percent of structural damage occurs when a home is 4 or more 
years old, and that major structural damage would lead to 
defaults on FHA-insured loans which are 100 percent insured by 
HUD, this section expresses the sense of Congress that HUD 
implement a program to provide incentives to homebuilders to 
offer 10-year warranties for new homes purchased with FHA-
insured loans.

Section 916. Demonstration Program for Affordable Housing Database

    The Secretary is directed to create an electronic or 
otherwise readily available database of available affordable 
housing and available affordable housing programs. Under the 
provision, the databases would include regularly updated lists 
of rental units that accept section 8 vouchers. Information 
about the location of the rental units, the number of units of 
each bedroom size, and the accessibility of the units to public 
transportation are to be provided. The amendment authorizes 
appropriation of funds for three demonstration projects.

Section 917. HUD Study Regarding Main Street Partnership

    This section requires that HUD conduct a study to determine 
the feasibility of establishing a ``Federal Main Street 
Partnership Fund'' to make grants to communities to make fast-
track changes to zoning and planning regulations that may 
inhibit the revitalization of downtown commercial areas for 
mixed-use affordable housing as well as commercial uses.

Section 918. Contractual Commitments for Rural Multifamily Rental 
        Housing

    The Housing Act of 1949 provides that borrowers who wish to 
prepay section 514 and 515 loans must apply to USDA for 
approval of the prepayment. Within 30 days of receiving such an 
offer, USDA must notify the tenants, interested nonprofit 
organizations, and appropriate State and local agencies. USDA 
is then required to make ``reasonable'' efforts to encourage 
the borrowers to agree to keep the property as low-income 
housing for an additional 20 years. As inducements USDA may use 
several options: (1) Offer to increase the rate of return on 
the borrowers' original investment, (2) offer to reduce the 
loan interest rate to as low as 1 percent, (3) offer additional 
rental assistance payments, (4) offer an equity loan for up to 
90 percent of the borrowers' equity in the property, (5) offer 
additional rental assistance to keep tenants' rent from 
increasing if the borrower accepts option two or four, and (6) 
for projects that are receiving section 8 assistance, to defray 
the cost of long-term repair or maintenance of the projects 
USDA may permit the owners to receive rent in excess of the 
amount determined to be necessary.
    If the borrowers still wish to prepay, the property must 
first be offered for sale to a qualified nonprofit organization 
or public body. Qualified organizations are defined as those 
which USDA determines are capable of managing the property for 
its remaining useful life and who agree to maintain the 
property as affordable to low- and very-low-income families. If 
no bona fide purchase offer is received within 180 days, then 
USDA may accept the offer to prepay the loan. Prepayment will 
be accepted for no more than 5,000 units of housing in a given 
fiscal year. This section would provide that, if advance 
appropriations of enhanced section 8 vouchers are available for 
all low-income residents of the projects, then owners of 
projects financed with section 514 and 515 loans may prepay the 
loans without restrictions after the later of (1) 20 years from 
the date on which the loan was made, and (2) the date which the 
owner and USDA have agreed to maintain the low-income use of 
the housing.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

           CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT

           *       *       *       *       *       *       *


               TITLE I--GENERAL PROVISIONS AND POLICIES

           *       *       *       *       *       *       *


SEC. 104. DEFINITIONS.

    As used in this title and in title II:
          (1) * * *

           *       *       *       *       *       *       *

          (6) The term ``community housing development 
        organization'' means a nonprofit organization as 
        defined in paragraph (5), that--
                  (A) * * *

           *       *       *       *       *       *       *

        In the case of an organization serving more than one 
        county, the Secretary may not require that such 
        organization, to be considered a community housing 
        development organization for purposes of this Act, 
        include as members on the organization's governing 
        board low-income persons residing in each county 
        served. In establishing requirements for an 
        organization to be considered a community housing 
        development organization for purposes of this Act, the 
        Secretary may not prohibit, limit, or restrict 
        membership on the board by public employees who are not 
        elected or appointed or who do not exercise policy-
        making or policy-determining functions.

           *       *       *       *       *       *       *

          (8) The term ``housing'' includes manufactured 
        housing and manufactured housing lots and elder cottage 
        housing opportunity units that are small, free-
        standing, barrier-free, energy-efficient, removable, 
        and designed to be installed adjacent to existing 1- to 
        4-family dwellings. Such term also includes an 
        additional room in, or a cottage housing opportunity 
        unit installed adjacent to, an existing 1- to 4-family 
        dwelling, that is necessary to permit the habitation, 
        with the low-income family occupying the dwelling, of 
        an elderly person who is a relative of the family and 
        to avoid placement of such relative in an 
        institutionalized setting, foster care, or other out-
        of-home setting.

           *       *       *       *       *       *       *


               TITLE II--INVESTMENT IN AFFORDABLE HOUSING

SEC. 201. SHORT TITLE.

  [This title] Subtitles A through F of this title may be cited 
as the ``HOME Investment Partnerships Act''.

           *       *       *       *       *       *       *


Subtitle A--HOME Investment Partnerships

           *       *       *       *       *       *       *


SEC. 212. ELIGIBLE USES OF INVESTMENT.

  (a) * * *
  (b) Investments.--Participating jurisdictions shall have 
discretion to invest funds made available under this subtitle 
as equity investments, interest-bearing loans or advances, 
noninterest-bearing loans or advances, interest subsidies or 
other forms of assistance that the Secretary has determined to 
be consistent with the purposes of this title. Each 
participating jurisdiction shall have the right to establish 
the terms of assistance. Notwithstanding the preceding 
sentence, in the case of homeownership assistance for 
residences of owners described in section 215(b)(2)(B), funds 
made available under this subtitle may only be invested (1) to 
provide amounts for downpayments on mortgages, (2) to pay 
reasonable closing costs normally associated with the purchase 
of a residence, (3) to obtain pre- or post-purchase counseling 
relating to the financial and other obligations of 
homeownership, or (4) to subsidize mortgage interest rates.

           *       *       *       *       *       *       *

  (h) Monitoring Fees.--Monitoring fees under section 226(c) 
for an affordable housing project may be paid for from amounts 
made available under this subtitle to the project, in 
accordance with an agreement pursuant to section 226(a).

           *       *       *       *       *       *       *


SEC. 214. INCOME TARGETING.

    Each participating jurisdiction shall invest funds made 
available under this subtitle within each fiscal year so that--
          (1) * * *
          (2) with respect to homeownership assistance, 100 
        percent of such funds are invested with respect to 
        dwelling units that are occupied by households that 
        qualify as low-income families or families described in 
        section 215(b)(2)(B); and

           *       *       *       *       *       *       *


SEC. 215. QUALIFICATION AS AFFORDABLE HOUSING.

    (a) * * *
    (b) Homeownership.--Housing that is for homeownership shall 
qualify as affordable housing under this title only if the 
housing--
          (1) * * *
          [(2) is the principal residence of an owner whose 
        family qualifies as a low-income family--
                  [(A) in the case of a contract to purchase 
                existing housing, at the time of purchase;
                  [(B) in the case of a lease-purchase 
                agreement for existing housing or for housing 
                to be constructed, at the time the agreement is 
                signed; or
                  [(C) in the case of a contract to purchase 
                housing to be constructed, at the time the 
                contract is signed;]
          (2) is the principal residence of an owner who--
                  (A) is a member of a family that qualifies as 
                a low-income family--
                          (i) in the case of a contract to 
                        purchase existing housing, at the time 
                        of purchase;
                          (ii) in the case of a lease-purchase 
                        agreement for existing housing or for 
                        housing to be constructed, at the time 
                        the agreement is signed; or
                          (iii) in the case of a contract to 
                        purchase housing to be constructed, at 
                        the time the contract is signed; or
                  (B)(i) is a uniformed employee (which shall 
                include policemen, firemen, and sanitation and 
                other maintenance workers) or a teacher who is 
                an employee, of the participating jurisdiction 
                (or an agency or school district serving such 
                jurisdiction) that is investing funds made 
                available under this subtitle to support 
                homeownership of the residence; and
                  (ii) is a member of a family whose income, at 
                the time referred to in clause (i), (ii), or 
                (iii) of subparagraph (A), as appropriate, and 
                as determined by the Secretary with adjustments 
                for smaller and larger families, does not 
                exceed 115 percent of the median income of the 
                area, except that, with respect only to such 
                areas that the Secretary determines have high 
                housing costs, taking into consideration median 
                house prices and median family incomes for the 
                area, such income limitation shall be 150 
                percent of the median income of the area, as 
                determined by the Secretary with adjustments 
                for smaller and larger families;

           *       *       *       *       *       *       *


SEC. 220. MATCHING REQUIREMENTS.

  (a) Contribution.--Each participating jurisdiction shall make 
contributions to housing that qualifies as affordable housing 
under this title that total, throughout [a fiscal year] a 
program year of the jurisdiction, not less than 25 percent of 
the funds drawn from the jurisdiction's HOME Investment Trust 
Fund in [such fiscal year] such program year. Such 
contributions shall be in addition to any amounts made 
available under section 216(3)(A)(ii).

           *       *       *       *       *       *       *

    (d) Reduction of Requirement.--
          (1) In general.--The Secretary shall reduce the 
        matching requirement under subsection (a) with respect 
        to any funds drawn from a jurisdiction's HOME 
        Investment Trust Fund Account during a [fiscal year] 
        program year of the jurisdiction by--
                  (A) * * *

           *       *       *       *       *       *       *

          (3) Distress criteria.--For purposes of a 
        jurisdiction other than a State certifying that it is 
        distressed, the following criteria shall apply:
                  (A) Poverty rate.--The average poverty rate 
                in the jurisdiction for the calendar year 
                immediately preceding the year in which its 
                [fiscal] program year begins was equal to or 
                greater than 125 percent of the average 
                national poverty rate during such calendar year 
                (as determined according to information of the 
                Bureau of the Census).
                  (B) Per capita income.--The average per 
                capita income in the jurisdiction for the 
                calendar year immediately preceding the year in 
                which its [fiscal] program year begins was less 
                than 75 percent of the average national per 
                capita income during such calendar year (as 
                determined according to information of the 
                Bureau of the Census).

           *       *       *       *       *       *       *

          (5) Waiver in disaster areas.--If a participating 
        jurisdiction is located in an area in which a 
        declaration of a disaster pursuant to the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act 
        is in effect for any part of a [fiscal year] program 
        year of the jurisdiction, the Secretary may reduce the 
        matching requirement for that fiscal year under 
        subsection (a) with respect to any funds drawn from a 
        jurisdiction's HOME Investment Trust Fund Account 
        during that fiscal year by up to 100 percent.

           *       *       *       *       *       *       *


SEC. 226. MONITORING OF COMPLIANCE.

    (a) Enforceable Agreements.--Each participating 
jurisdiction, through binding contractual agreements with 
owners and otherwise, shall ensure long-term compliance with 
the provisions of this title. Such measures shall provide for 
(1) enforcement of the provisions of this title by the 
jurisdiction or by the intended beneficiaries, [and] (2) 
remedies for the breach of such provisions, and (3) such fees 
as may be established by the participating jurisdiction 
pursuant to subsection (c).
    [(b) Periodic Monitoring.--Each participating jurisdiction, 
not less frequently than annually, shall review the activities 
of owners of affordable housing assisted under this title for 
rental to assess compliance with the requirements of this 
title. Such review shall include on-site inspection to 
determine compliance with housing codes and other applicable 
regulations. The results of each review shall be included in 
the jurisdiction's performance report submitted to the 
Secretary under section 108(a) and made available to the 
public.]
  (b) Periodic Monitoring.--
          (1) Requirement.--Each participating jurisdiction 
        shall review the activities of owners of affordable 
        housing for rental that is assisted under this title to 
        assess compliance with the requirements of this title. 
        Such review shall be conducted in compliance with the 
        provisions of paragraph (2) (relating to frequency) and 
        shall include on-site inspection to determine 
        compliance with housing codes and other applicable 
        regulations.
          (2) Frequency.--The review required by paragraph (1) 
        shall be conducted not less frequently than annually, 
        except that, in the case of affordable housing for 
        rental that has been allocated a low-income housing tax 
        credit by a housing credit agency pursuant to section 
        42 of the Internal Revenue Code 1986 and is not 
        considered (under such regulations as the Secretary 
        shall prescribe) to be high-risk housing, the on-site 
        inspection referred to in paragraph (1) shall be 
        conducted once every 3 years, or more often as may be 
        required under the regulations issued pursuant to such 
        section 42.
          (3) Inclusion in performance report.--The results of 
        each review of a participating jurisdiction shall be 
        included in the performance report of the jurisdiction 
        that is submitted under section 108(a) for the year in 
        which the review is conducted and shall be made 
        available to the public.
  (c) Monitoring Fees.--A participating jurisdiction may 
establish and charge reasonable fees to affordable housing 
projects assisted under this title for costs of monitoring 
compliance with the provisions of this title.
    [(c)] (d)  Special Procedures for Certain Projects.--In the 
case of small-scale or scattered site housing, the Secretary 
may provide for such streamlined procedures for achieving the 
purposes of this section as the Secretary determines to be 
appropriate.

           *       *       *       *       *       *       *


           Subtitle B--Community Housing Partnership

           *       *       *       *       *       *       *


SEC. 233. HOUSING EDUCATION AND ORGANIZATIONAL SUPPORT.

    (a) * * *

           *       *       *       *       *       *       *

    (d) Limitations.--Contracts under this section with any one 
contractor for a fiscal year [may not--
          [(1)] may not exceed 20 percent of the amount 
        appropriated for this section for such fiscal year[; or
          [(2) provide more than 20 percent of the operating 
        budget (which shall not include funds that are passed 
        through to community housing development organizations) 
        of the contracting organization for any one year.].

           *       *       *       *       *       *       *


  Subtitle C--Other Support for State and Local Housing Strategies

           *       *       *       *       *       *       *


SEC. 243. CONDITIONS OF CONTRACTS.

  (a) * * *
  (b) Contract Terms.--Contracts under this subtitle shall be 
for not more than 3 years [and shall provide not more than 20 
percent of the operating budget of the contracting organization 
in any one year]. Within any fiscal year, contracts with any 
one organization may not be entered into for a total of more 
than 20 percent of the funds appropriated under this subtitle 
in that fiscal year.

           *       *       *       *       *       *       *


                [Subtitle E--Mortgage Credit Enhancement

[SEC. 271. REPORT ON CREDIT ENHANCEMENT.

    [(a) In General.--The Comptroller General of the United 
States shall carry out a study of ways in which financing for 
affordable housing may be made available to assist in the most 
efficient implementation of comprehensive housing affordability 
strategies of participating jurisdictions. In conducting the 
study, the Comptroller General shall draw upon the expertise of 
such representatives of State and local government, State and 
local housing finance agencies, agencies of the United States, 
government-sponsored mortgage finance corporations, for-profit 
and nonprofit housing developers, private  financial  
institutions,  and  sources  of  long-term  mortgage 
investment, as the Comptroller General determines to be 
appropriate.
    [(b) Report.--Not later than one year after the enactment 
of this Act, the Comptroller General shall submit to the 
Congress and the Secretary a report containing any 
recommendations for legislative or administrative actions 
needed to improve the availability of mortgage finance for 
affordable housing. The report shall include, but need not be 
limited to, an assessment of--
          [(1) the need for the Department of Housing and Urban 
        Development or other agencies of the United States to 
        provide partial credit enhancement to make financing 
        for affordable housing available efficiently and at the 
        lowest possible cost; and
          [(2) alternative ways in which--
                  [(A) the Department could provide any needed 
                credit enhancement on a one-stop basis for 
                participating jurisdictions, in coordination 
                with other forms of assistance under this 
                subtitle;
                  [(B) the Department or other agencies of the 
                Federal Government could assist government-
                sponsored mortgage finance corporations in the 
                financing of mortgages on affordable housing 
                through the development of mortgage-backed 
                securities that are more standardized and 
                readily traded in the capital markets;
                  [(C) the capacities of existing agencies of 
                the United States could be used to provide 
                mortgage finance more efficiently for 
                affordable housing through government-sponsored 
                mortgage finance corporations; and
                  [(D) the interests of the Federal Government 
                could be protected and any risks of loss could 
                be minimized through requirements for fees, 
                mortgage insurance, risk-sharing, secure 
                collateral, and guarantees by other parties, 
                and through standards relating to minimum 
                capital and prior experience with underwriting, 
                origination and servicing.]

                      Subtitle E--Other Assistance

SEC. 271. DOWNPAYMENT ASSISTANCE INITIATIVE.

  (a) Grant Authority.--The Secretary may make grants to 
participating jurisdictions to assist low-income families to 
achieve homeownership, in accordance with this section.
  (b) Eligible Activities.--Amounts made available under this 
section may be used only for downpayment assistance toward the 
purchase of single family housing by low-income families who 
are first-time homebuyers. For purposes of this title, the term 
``downpayment assistance'' means assistance to help a family 
acquire a principal residence.
  (c) Housing Strategy.--To be eligible to receive a grant 
under this section for a fiscal year, a participating 
jurisdiction shall include in its comprehensive housing 
affordability strategy under section 105 for such year a 
description of the use of the grant amounts.
  (d) Formula Allocation.--For each fiscal year, the Secretary 
shall allocate any amounts made available for assistance under 
this section for the fiscal year in accordance with a formula, 
which shall be established by the Secretary, that considers a 
participating jurisdiction's need for and prior commitment to 
assistance to homebuyers. The formula may include minimum and 
maximum allocation amounts.
  (e) Reallocation.--If any amounts allocated to a 
participating jurisdiction under this section become available 
for reallocation, the amounts shall be reallocated to other 
participating jurisdictions in accordance with the formula 
established pursuant to subsection (c), except that if a local 
participating jurisdiction failed to receive amounts allocated 
under this section and is located in a State that is a 
participating jurisdiction, the funds shall be reallocated to 
the State.
  (f) Applicability of Other Provisions.--
          (1) In general.--Except as otherwise provided in this 
        section, grants under this section shall not be subject 
        to the provisions of this title.
          (2) Applicable provisions.--In addition to the 
        requirements of this section, grants under this section 
        shall be subject to the provisions of title I, sections 
        215(b), 218, 219, 221, 223, 224, and 226(a) of subtitle 
        A of this title, and subtitle F of this title.
          (3) References.--In applying the requirements of 
        subtitle A referred to in paragraph (2)--
                  (A) any references to funds under subtitle A 
                shall be considered to refer to amounts made 
                available for assistance under this section; 
                and
                  (B) any references to funds allocated or 
                reallocated under section 217 or 217(d) shall 
                be considered to refer to amounts allocated or 
                reallocated under subsection (d) or (e) of this 
                section, respectively.
  (g) Administrative Costs.--Notwithstanding section 212(c), a 
participating jurisdiction may use funds under subtitle A for 
administrative and planning costs of the jurisdiction in 
carrying out this section, and the limitation in section 212(c) 
shall be based on the total amount of funds available under 
subtitle A and this section.
  (h) Funding.--There are authorized to be appropriated such 
sums as may be necessary to carry out this section for each of 
fiscal years 2003 and 2004.

                     Subtitle F--General Provisions

           *       *       *       *       *       *       *


SEC. 291. RELOCATION ASSISTANCE AND DOWNPAYMENT ASSISTANCE.

  The Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 shall not apply to downpayment 
assistance under this title.

  Subtitle G--Matching Grants for State and Local Affordable Housing 
                              Trust Funds

SEC. 292. MATCHING GRANT PROGRAM.

  (a) Findings.--The Congress finds the following:
          (1) There are more than 280 housing trust funds in 
        the United States. 36 States have created housing trust 
        funds and the remainder were created by cities and 
        counties.
          (2) More than $500,000,000 is spent for affordable 
        housing through these trust funds every year and this 
        amount is increasing. On average, for every dollar 
        committed to a housing project by a housing trust fund, 
        another $5 to $10 is leveraged in other public and 
        private resources.
          (3) Hundreds of thousands of housing units have been 
        supported through housing trust funds.
          (4) Housing trust funds support a variety of housing 
        activities for low- and very low-income households, 
        including new construction, preservation of existing 
        housing, emergency repairs, homeless shelters, housing-
        related services, and capacity building for nonprofit 
        organizations.
          (5) At any given time, as many as 50 additional 
        jurisdictions are considering the creation of a housing 
        trust fund.
          (6) These unique funds are a fundamental aspect of 
        emerging housing policy in the United States.
          (7) Housing trust funds have demonstrated that when 
        government makes a commitment to address critical 
        housing needs, the on-going dedicated source of revenue 
        allows for more intelligent planning to address housing 
        needs and for improved proposals submitted by the 
        housing industry in an effort to effectively use 
        existing resources.
          (8) Housing trust funds enable jurisdictions to 
        elevate funding for their critical housing needs by 
        committing resources to a process that treats 
        affordable housing as an essential component of 
        maintaining healthy communities.
          (9) Jurisdictions have documented increased jobs, 
        growing sales taxes, higher property tax revenues, and 
        many other economic benefits from the operation of 
        their housing trust funds.
          (10) Providing federal incentives to encourage the 
        establishment of more State and local housing trust 
        funds, and providing Federal funds for the more than 
        280 existing housing trust funds, would be a positive 
        action in addressing the affordable housing crisis.
  (b) In General.--The Secretary of Housing and Urban 
Development may make grants under this section to affordable 
housing trust funds that are distinct funds, established by 
States and units of general local government, that use public 
revenue to support the production, preservation, and 
rehabilitation of affordable housing, as determined by the 
Secretary.
  (c) Allocations for States and Units of General Local 
Government.--The Secretary shall use the total amount made 
available for grants under this section for each fiscal year to 
provide such grants to affordable housing trust funds of States 
and units of general local government. Of such total amount, 
the Secretary shall allocate 40 percent for grants for 
affordable housing trust funds of States and 60 percent for 
grants for affordable housing trust funds of units of general 
local government. Each State affordable housing trust fund 
shall receive at least 1 percent of the amount allocated for 
the States.
  (d) Matching Requirement.--The Secretary may not make a grant 
under this section for any fiscal year to any affordable 
housing trust fund in an amount in excess of the amount that 
the State or local government administering the trust fund 
certifies, as the Secretary shall require, that will be 
contributed from non-Federal sources during such fiscal year to 
the trust fund for use only for production, preservation, and 
rehabilitation of affordable housing.
  (e) Use Requirements.--Amounts provided from a grant under 
this section shall be subject to the following requirements:
          (1) Distribution to eligible entities.--Grant amounts 
        under this section (excluding any amounts used under 
        paragraph (2)) shall be distributed to eligible 
        entities for use by such entities only for eligible 
        activities in the jursidiction served by the affordable 
        housing trust fund, as follows:
                  (A) Use for rental housing for extremely low-
                income families.--75 percent of such amounts 
                shall be distributed for use only for eligible 
                activities relating to qualified affordable 
                housing that is available for rental by 
                extremely low-income families in the 
                jurisdiction served by the affordable housing 
                trust fund. Such rental housing shall include 
                limited equity cooperative housing, as such 
                term is defined in section 143(k) of the 
                Internal Revenue Code of 1986 (26 U.S.C 
                143(k)).
                  (B) Use for rental housing or homeownership 
                for low-income families.--25 percent of such 
                amounts shall be distributed for use only for 
                eligible activities relating to qualified 
                affordable housing that is available for rental 
                by low-income families in the jurisdiction 
                served by the affordable housing trust fund, or 
                for homeownership assistance for low-income 
                families in such jurisdiction. Such rental 
                housing and homes for homeownership shall 
                include housing of a cooperative housing 
                corporation, as such term as defined in section 
                216(b) of the Internal Revenue Code of 1986 (26 
                U.S.C. 216(b)).
          (2) Operating assistance for nonprofit housing 
        development organizations.--An affordable housing trust 
        fund that receives a grant under this section may use 
        not more than 5 percent of such grant amounts to 
        provide assistance to nonprofit organizations involved 
        in the development, rehabilitation, or preservation of 
        affordable rental housing for payment of operating 
        costs of such organizations. Such nonprofit 
        organizations shall include community housing 
        development organizations (as such term is defined in 
        section 104 of this Act, community development 
        financial institutions (as such term is defined in 
        section 103 of the Community Development Banking and 
        Financial Institutions Act of 1994 (12 U.S.C. 4702)), 
        community development corporations (as such term is 
        defined in section 31131 of the National Community 
        Economic Partnership Act of 1994 (42 U.S.C. 13851)), 
        and community-based development organizations.
          (3) Cost limits.--The Secretary shall establish 
        limitations on the amount of grant amounts that may be 
        used, on a per unit basis, for eligible activities. 
        Such limitations shall be the same as the per unit cost 
        limits established pursuant to section 212(e), as 
        adjusted annually, and established by number of 
        bedrooms, market area, and eligible activity.
  (f) Allocation Plan.--
          (1) Requirement.--With respect to a fiscal year, an 
        affordable housing trust fund shall be eligible to 
        receive a grant under this section for such fiscal year 
        only if the trust fund has established an allocation 
        plan that has been submitted to the Secretary and 
        reviewed and approved by the Secretary as in accordance 
        with this subsection. The Secretary may disapprove an 
        allocation plan only if the plan fails to comply with 
        requirements set forth in this section.
          (2) Establishment.--An allocation plan in accordance 
        with this subsection is a plan, established by an 
        affordable housing trust fund for a fiscal year, for 
        the distribution of grant amounts provided under this 
        section to the trust fund for such fiscal year.
          (3) Notice.--In establishing an allocation plan, the 
        affordable housing trust fund shall notify the public 
        of the establishment of the plan, provide an 
        opportunity for public comments regarding the plan, 
        consider any public comments received, and make the 
        completed plan available to the public.
          (4) Contents.--An allocation plan of an affordable 
        housing trust fund shall include the following 
        information:
                  (A) Application requirements for eligible 
                entities and subrecipients.--The allocation 
                plan shall set forth the requirements for 
                eligible entities and eligible subrecipients to 
                apply to receive assistance from grant amounts 
                under this section, including a requirement 
                that each such application include--
                          (i) a description of the eligible 
                        activities to be conducted using such 
                        assistance; and
                          (ii) a certification by the applicant 
                        that any housing units assisted with 
                        such assistance will comply with the 
                        requirements under--
                                  (I) subsection (k)(9)(A) 
                                (relating to rents charged);
                                  (II) subsection (k)(9)(B) 
                                (relating to tenant rent 
                                contribution);
                                  (III) subsection (k)(9)(C) 
                                (relating to availability of 
                                units for voucher holders); and
                                  (IV) subsection (k)(9)(E) 
                                (relating to use as qualified 
                                affordable housing for 40 
                                years).
                  (B) Selection and preference criteria for 
                eligible entities and subrecipients.--The 
                allocation plan shall set forth the factors for 
                consideration in selecting among applicants 
                that meet the application requirements set 
                forth pursuant to subparagraph (A), which shall 
                give preference to applicants based on--
                          (i) the amount of assistance 
                        leveraged by the applicant from private 
                        and other non-Federal sources for 
                        carrying out the eligible activities to 
                        be funded with assistance from grant 
                        amounts under this section, including 
                        assistance made available under section 
                        8 of the United States Housing Act of 
                        1937 (42 U.S.C. 1437f) that is devoted 
                        to the project that contains the 
                        qualified affordable housing to be 
                        assisted with such assistance;
                          (ii) the extent of local assistance 
                        that will be provided in carrying out 
                        the eligible activities, including--
                                  (I) financial assistance;
                                  (II) the extent to which the 
                                applicant has worked to address 
                                issues of siting and 
                                exclusionary zoning or other 
                                policies that are barriers to 
                                affordable housing with the 
                                unit of general local 
                                government in which the housing 
                                to be assisted with such 
                                assistance will be located; and
                                  (III) the extent to which the 
                                applicant has worked with the 
                                unit of general local 
                                government to reduce the 
                                barriers to affordable housing;
                          (iii) the degree to which the project 
                        in which the qualified affordable 
                        housing will be located will have 
                        residents of various incomes;
                          (iv) the extent of employment and 
                        other economic opportunities for low-
                        income families in the area in which 
                        the housing will be located;
                          (v) the extent to which the applicant 
                        demonstrates the ability to maintain 
                        dwelling units as qualified affordable 
                        housing through the use of assistance 
                        made available under this section, 
                        assistance leveraged from non-Federal 
                        sources, assistance made available 
                        under section 8 of the United States 
                        Housing Act of 1937 (42 U.S.C. 1437f), 
                        State or local assistance, programs to 
                        increase tenant income, cross-
                        subsidization, and any other resources;
                          (vi) the extent to which the 
                        applicant demonstrates that the county 
                        in which the housing is to be located 
                        is experiencing an extremely low 
                        vacancy rate;
                          (vii) the extent to which the 
                        percentage of the housing located in 
                        such county that is extremely old 
                        housing exceeds 35 percent;
                          (viii) whether the applicant has 
                        provided that--
                                  (I) 75 percent of the grant 
                                amounts will be used for 
                                eligible activities relating to 
                                housing located in census 
                                tracts in which the number of 
                                families having incomes less 
                                than the poverty line is less 
                                than 20 percent or in 
                                communities undergoing 
                                revitalization; and
                                  (II) 25 percent of the grant 
                                amounts will be used for 
                                eligible activities relating to 
                                housing that is located in 
                                census tracts in which the 
                                number of families having 
                                incomes less than the poverty 
                                line is greater than 20 percent 
                                and is not located in a 
                                community undergoing 
                                revitalization; and
                          (ix) whether the applicant has 
                        provided that--
                                  (I) not less than 45 percent 
                                of the grant amounts will be 
                                used for eligible activities 
                                relating to housing that is 
                                affordable to families having 
                                incomes less than 30 percent of 
                                the greater of (aa) the median 
                                income for the area in which 
                                the housing is located, or (bb) 
                                the median income for the State 
                                in which the housing is 
                                located;
                                  (II) not less than 30 percent 
                                of the grant amounts will be 
                                used for eligible activities 
                                relating to housing that is 
                                affordable to families having 
                                incomes not exceeding the 
                                amount earned by a family 
                                having one individual (or 1.5 
                                individuals in the case of a 
                                family consisting of 3 or more 
                                individuals), who is employed 
                                on a full-time basis in a 
                                position paying the higher of 
                                (aa) the Federal minimum wage 
                                under section 6(a)(1) of the 
                                Fair Labor Standards Act of 
                                1938 (29 U.S.C. 206(a)(1)), or 
                                (bb) the minimum wage under 
                                State law of the State in which 
                                the housing is located; and
                                  (III) not more than 25 
                                percent of the grant amounts 
                                will be used for eligible 
                                activities relating to housing 
                                for families having incomes 
                                that (aa) are greater than the 
                                incomes referred to in 
                                subclauses (I) and (II) of this 
                                clause, but (bb) do not exceed 
                                the higher of the median income 
                                for the State in which the 
                                housing is located or 80 
                                percent of the median income 
                                for the area in which the 
                                housing is located.
          (5) Consolidated plan.--The Secretary shall provide 
        that a State or unit of general local government 
        administering an affordable housing trust fund may 
        comply with the requirements under this subsection for 
        submission of an allocation plan through the inclusion 
        of any appropriate information in a single consolidated 
        submission used for purposes of applying for other 
        community planning and development and housing 
        assistance programs administered by the Secretary.
  (g) Forms of Assistance.--
          (1) In general.--Assistance from grant amounts under 
        this section may be distributed in the form of capital 
        grants, noninterest bearing or low-interest loans or 
        advances, deferred payment loans, guarantees, and any 
        other forms of assistance approved by the Secretary.
          (2) Repayments.--If an affordable housing trust fund 
        awards assistance from grant amounts under this section 
        in the form of a loan or other mechanism by which funds 
        are later repaid to the trust fund, any repayments 
        received by the trust fund shall be distributed by the 
        trust fund in accordance with the allocation plan under 
        subsection (f) for the trust fund for the fiscal year 
        in which such repayments are made.
  (h) Coordination With Other Assistance.--In distributing 
assistance from grant amounts under this section, each 
affordable housing trust fund shall, to the maximum extent 
practicable, coordinate such distribution with the provision of 
other affordable housing assistance by the trust fund, 
including--
          (1) in the case of any State, housing credit dollar 
        amounts allocated by the State under section 42(h) of 
        the Internal Revenue Code of 1986;
          (2) assistance otherwise made available under this 
        title or the community development block grant program 
        under title I of the Housing and Community Development 
        Act of 1974 (42 U.S.C. 5301 et seq.); and
          (3) private activity bonds.
  (i) Administration of Program by Subrecipient.--At the 
discretion of the affordable housing trust fund, the trust fund 
may select an eligible subrecipient to carry out all or a 
portion of the trust fund's responsibilities under this 
section, in accordance with this section.
  (j) Labor Standards.--Each affordable housing trust fund 
receiving grant amounts under this section shall ensure that 
contracts for eligible activities assisted with such amounts 
comply with the same requirements under section 286 that are 
applicable to contracts for construction of affordable housing 
assisted under such Act.
  (k) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Eligible activities.--The term ``eligible 
        activities'' means activities relating to the providing 
        qualified affordable housing, including--
                  (A) the construction of new housing;
                  (B) the acquisition of real property;
                  (C) site preparation and improvement, 
                including demolition;
                  (D) rehabilitation of existing housing; and
                  (E) providing incentives to maintain existing 
                housing as qualified affordable housing and to 
                establish or extend any low-income 
                affordability restrictions for such housing, 
                including covering capital expenditures and 
                operating costs.
          (2) Eligible entity.--The term ``eligible entity'' 
        includes any public or private nonprofit or for-profit 
        entity, unit of general local government, regional 
        planning entity, and any other entity engaged in the 
        development, rehabilitation, or preservation of 
        qualified affordable housing, as determined by the 
        Secretary.
          (3) Eligible subrecipient.--The term ``eligible 
        subrecipient'' means a public agency or a nonprofit 
        organization, including a community development 
        corporation, a community development financial 
        institution, a State or local housing trust fund, and 
        any other intermediary selected by an affordable 
        housing trust fund to administer all or a portion of 
        the trust fund's responsibilities under this section. 
        The term does not include any public agency or 
        nonprofit organization that receives money from an 
        affordable housing trust fund solely as a developer or 
        owner of housing.
          (4) Extremely low-income families.--The term 
        ``extremely low-income families'' means families (as 
        such term is defined in section 3(b) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437a(b))) whose 
        incomes 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 incomes.
          (5) Extremely low vacancy rate.--The term ``extremely 
        low vacancy rate'' means a housing or rental vacancy 
        rate of 2 percent or less.
          (6) Extremely old housing.--The term ``extremely old 
        housing'' means housing that is 45 years old or older.
          (7) Low-income families.--The term ``low-income 
        families'' has the meaning given such term in section 
        3(b) of the United States Housing Act of 1937 (42 
        U.S.C. 1437a(b)).
          (8) Poverty line.--The term ``poverty line'' has the 
        meaning given such term in section 673(2) of the 
        Omnibus Budget Reconciliation Act of 1981, including 
        any revision required by such section.
          (9) Qualified affordable housing.--The term 
        ``qualified affordable housing'' means a rental 
        dwelling unit that is subject to legally binding 
        commitments that ensure that the dwelling unit meets 
        all of the following requirements:
                  (A) Rents.--The dwelling unit bears a rent 
                not greater than the lesser of--
                          (i) the existing fair market rental 
                        established by the Secretary under 
                        section 8(c) of the United States 
                        Housing Act of 1937 (42 U.S.C. 
                        1437f(c)) for a dwelling unit of the 
                        same size in the same market area; and
                          (ii) a rent that does not exceed 30 
                        percent of the adjusted income of a 
                        family whose income equals 65 percent 
                        of the median income for the area, as 
                        determined by the Secretary, with 
                        adjustment for number of bedrooms in 
                        the unit, except that the Secretary may 
                        establish income ceilings higher or 
                        lower than 65 percent of the median for 
                        the area on the basis of the findings 
                        of the Secretary that such variations 
                        are necessary because of prevailing 
                        levels of construction costs or fair 
                        market rents, or unusually high or low 
                        family incomes.
                  (B) Tenant rent contribution.--The 
                contribution toward rent by the family residing 
                in the dwelling unit will not exceed 30 percent 
                of the adjusted income of such family.
                  (C) Availability of units for voucher 
                holders.--The dwelling unit--
                          (i) is located in a project within 
                        which a percentage of units are made 
                        available only for occupancy by 
                        families assisted under the voucher 
                        program under section 8(o) of the 
                        United States Housing Act of 1937 (42 
                        U.S.C. 1437f(o)) (including project-
                        based assistance under section 
                        8(o)(13)) on the same basis as other 
                        families eligible for occupancy of the 
                        project (except that only the voucher 
                        holder's expected share of rent shall 
                        be considered), which percentage shall 
                        not be less than the percentage of the 
                        total cost of developing, 
                        rehabilitating, or preserving the 
                        project that is funded with assistance 
                        under this section; and
                          (ii) is one of the units that is 
                        subject to such occupancy requirements.
                  (D) Non-discrimination against voucher 
                holders.--The dwelling unit is located in a 
                project in which all dwelling units are subject 
                to enforceable restrictions that provide that a 
                unit may not be refused for leasing to a holder 
                of a voucher of eligibility under section 8 of 
                the United States Housing Act of 1937 (42 
                U.S.C. 1437f) because of the status of the 
                prospective tenant as a holder of such voucher.
                  (E) Duration of use.--The dwelling unit will 
                continue to be subject to the requirements 
                under this paragraph for not less than 40 
                years.
          (10) Secretary.--The term ``Secretary'' means the 
        Secretary of Housing and Urban Development.
  (l) Authorizations of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary for fiscal 
year 2003 and each fiscal year thereafter for grants under this 
section. Amounts made available for the HOME Investment 
Partnerships Act shall not be available for assistance under 
this subtitle.
  (m) Inapplicability of Home Provisions.--Except as 
specifically provided in this subtitle, no requirement under, 
or provision of, title I or subtitles A through F of this title 
shall apply to assistance provided under this subtitle.

           *       *       *       *       *       *       *


          TITLE VIII--HOUSING FOR PERSONS WITH SPECIAL NEEDS

           *       *       *       *       *       *       *


        Subtitle D--Housing Opportunities for Persons With AIDS

           *       *       *       *       *       *       *


[SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
subtitle $150,000,000 for fiscal year 1993 and $156,300,000 for 
fiscal year 1994.]

SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated for grants under 
sections 860 and 861 such sums as may be necessary for each of 
fiscal years 2003 and 2004.

           *       *       *       *       *       *       *

                              ----------                              


                         NATIONAL HOUSING ACT

           *       *       *       *       *       *       *


                      TITLE II--MORTGAGE INSURANCE

                              definitions

    Sec. 201. As used in section 203 of this title--
          [(a)] (1) The term ``mortgage'' means a first 
        mortgage on real estate, in fee simple, or on a 
        leasehold [(1)] (A) under a lease for not less than 
        ninety-nine years which is renewable or [(2)] (B) under 
        a lease having a period of not less than ten years to 
        run beyond the maturity date of the mortgage; and the 
        term ``first mortgage'' means such classes of first 
        liens as are commonly given to secure advances on, or 
        the unpaid purchase price of, real estate, under the 
        laws of the State in which the real estate is located, 
        together with the credit instrument, if any, secured 
        thereby.
          [(b)] (2) The term ``mortgagee'' includes the 
        original lender under a mortgage, and his successors 
        and assigns approved by the Secretary; and the term 
        ``mortgagor'' includes the original borrower under a 
        mortgage and his successors and assigns.
          [(c)] (3) The term ``maturity date'' means the date 
        on which the mortgage indebtedness would be 
        extinguished if paid in accordance with periodic 
        payments provided for in the mortgage.
          [(d)] (4) The term ``State'' includes the several 
        States and Puerto Rico, the District of Columbia, Guam, 
        the Trust Territory of the Pacific Islands, American 
        Samoa, and the Virgin Islands.
          [(e)] (5) The term ``family member'' means, with 
        respect to a mortgagor under such section, a child, 
        parent, or grandparent of the mortgagor (or the 
        mortgagor's spouse). In determining whether any of the 
        relationships referred to in the preceding sentence 
        exist, a legally adopted son or daughter of an 
        individual (and a child who is a member of an 
        individual's household, if placed with such individual 
        by an authorized placement agency for legal adoption by 
        such individual), and a foster child of an individual, 
        shall be treated as a child of such individual by 
        blood.
          [(f)] (6) The term ``child'' means, with respect to a 
        mortgagor under such section, a son, stepson, daughter, 
        or stepdaughter of such mortgagor.
          (7) The term ``public safety officer'' has the 
        meaning given such term in section 1204 of the Omnibus 
        Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
        3796b).
          (8) The term ``teacher'' means an individual who is 
        employed on a part- or full-time basis as a teacher, 
        teacher assistant, or administrator in a public or 
        private school that provides elementary or secondary 
        education, as determined under State law, except that 
        elementary education shall include pre-Kindergarten 
        education, and except that secondary education shall 
        not include any education beyond grade 12.
          (9) The term ``local educational agency'' has the 
        meaning given such term in section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 8801).

           *       *       *       *       *       *       *


                         INSURANCE OF MORTGAGES

    Sec. 203. (a) * * *
    (b) To be eligible for insurance under this section a 
mortgage shall--
          (1) * * *
          (2) Involve a principal obligation (including such 
        initial service charges, appraisal, inspection, and 
        other fees as the Secretary shall approve) in an 
        amount--
                  (A) not to exceed the lesser of--
                          (i) in the case of a 1-family 
                        residence, 95 percent of the median 1-
                        family house price in the area, as 
                        determined by the Secretary; in the 
                        case of a 2-family residence, 107 
                        percent of such median price; in the 
                        case of a 3-family residence, 130 
                        percent of such median price; or in the 
                        case of a 4-family residence, 150 
                        percent of such median price; or
                          (ii) 87 percent of the dollar amount 
                        limitation determined under section 
                        305(a)(2) of the Federal Home Loan 
                        Mortgage Corporation Act for a 
                        residence of the applicable size; 
                        except that the dollar amount 
                        limitation in effect for any area under 
                        this subparagraph may not be less than 
                        the greater of the dollar amount 
                        limitation in effect under this section 
                        for the area on the date of the 
                        enactment of the Departments of 
                        Veterans Affairs and Housing and Urban 
                        Development, and Independent Agencies 
                        Appropriations Act for Fiscal Year 1999 
                        or 48 percent of the dollar limitation 
                        determined under section 305(a)(2) of 
                        the Federal Home Loan Mortgage 
                        Corporation Act for a residence of the 
                        applicable size; and
                  [(B) except as otherwise provided in this 
                paragraph (2), not to exceed an amount equal to 
                the sum of--
                          [(i) 97 percent of $25,000 of the 
                        appraised value of the property, as of 
                        the date the mortgage is accepted for 
                        insurance;
                          [(ii) 95 percent of such value in 
                        excess of $25,000 but not in excess of 
                        $125,000; and
                          [(iii) 90 percent of such value in 
                        excess of $125,000.]
                  [(A) In general.--Notwithstanding any other 
                provision of this subsection, with respect to a 
                mortgage closed on or before December 31, 2002, 
                involving a principal obligation not in excess 
                of the sum of--] (B) not to exceed an amount 
                equal to the sum of--
                          (i) the amount of the mortgage 
                        insurance premium paid at the time the 
                        mortgage is insured; and
                          (ii)(I) * * *

           *       *       *       *       *       *       *

                          (IV) notwithstanding subclauses (II) 
                        and (III), in the case of a mortgage 
                        for a property with an appraised value 
                        in excess of $50,000 that is located in 
                        [an area of the] a State for which the 
                        average closing cost exceeds 2.10 
                        percent of the average, for the State, 
                        of the sale price of properties located 
                        in the State for which mortgages have 
                        been executed, 97.75 percent of the 
                        appraised value of the property.
        For purposes of the preceding sentence, the term 
        ``area'' means a metropolitan statistical area as 
        established by the Office of Management and Budget; and 
        the median 1-family house price for an area shall be 
        equal to the median 1-family house price of the county 
        within the area that has the highest such median price. 
        [If the mortgage to be insured under this section 
        covers property on which there is located a one- to 
        four-family residence, and the appraised value of the 
        property, as of the date the mortgage is accepted for 
        insurance, does not exceed $50,000, the principal 
        obligation may be in an amount not to exceed 97 percent 
        of such appraised value. If the mortgagor is a veteran 
        and the mortgage to be insured under this section 
        covers property upon which there is located a dwelling 
        designed principally for a one-family residence, the 
        principal obligation may be in an amount equal to the 
        sum of (i) 100 per centum of $25,000 of the appraised 
        value of the property as of the date the mortgage is 
        accepted for insurance, and (ii) 95 per centum of such 
        value in excess of $25,000.] For purposes of this 
        paragraph (2), the term ``average closing cost'' means, 
        with respect to a State, the average, for mortgages 
        executed for properties that are located within the 
        State, of the total amounts (as determined by the 
        Secretary) of initial service charges, appraisal, 
        inspection, and other fees (as the Secretary shall 
        approve) that are paid in connection with such 
        mortgages. Notwithstanding any other provision of this 
        section, in any case where the dwelling is not approved 
        for mortgage insurance prior to the beginning of 
        construction, such mortgage shall not exceed 90 per 
        centum of the entire appraised value of the property as 
        of the date the mortgage is accepted for insurance, 
        unless (i) the dwelling was completed more than one 
        year prior to the application for mortgage insurance, 
        or (ii) the dwelling was approved for guaranty, 
        insurance, or a direct loan under chapter 37 of title 
        38, United States Code, prior to the beginning of 
        construction, or (iii) the dwelling is covered by a 
        consumer protection or warranty plan acceptable to the 
        Secretary and satisfies all requirements which would 
        have been applicable if such dwelling had been approved 
        for mortgage insurance prior to the beginning of 
        construction. [As used herein, the term ``veteran'' 
        means any person who served on active duty in the armed 
        forces of the United States for a period of not less 
        than 90 days (or as certified by the Secretary of 
        Defense as having performed extra-hazardous service), 
        and who was discharged or released therefrom under 
        conditions other than dishonorable, except that persons 
        enlisting in the armed forces after September 7, 1980, 
        or entering active duty after October 16, 1981, shall 
        have their eligibility determined in accordance with 
        section 3103A(d) of title 38, United States Code.]
          Notwithstanding any other provision of this 
        paragraph, the amount which may be insured under this 
        section may be increased by up to 20 percent if such 
        increase is necessary to account for the increased cost 
        of the residence due to the installation of a solar 
        energy system (as defined in subparagraph (3) of the 
        last paragraph of section 2(a) of this Act) therein.
          [Except with respect to mortgages executed by 
        mortgagors who are veterans, a mortgage may not involve 
        a principal obligation (including such initial service 
        charges, appraisal, inspection, and other fees as the 
        Secretary shall approve) in excess of 98.75 percent of 
        the appraised value of the property (97.75 percent, in 
        the case of a mortgage with an appraised value in 
        excess of $50,000), plus the amount of the mortgage 
        insurance premium paid at the time the mortgage is 
        insured. For purposes of the preceding sentence, the 
        term ``appraised value'' means the amount set forth in 
        the written statement required under section 226, or a 
        similar amount determined by the Secretary if section 
        226 does not apply. Notwithstanding the authority of 
        the Secretary to establish the terms of insurance under 
        this section and approve the initial service charges, 
        appraisal, inspection, and other fees (and subject to 
        any other limitations under this section on the amount 
        of a principal obligation), the Secretary may not (by 
        regulation or otherwise) limit the percentage or amount 
        of any such approved charges and fees that may be 
        included in the principal obligation of a mortgage.
          [Notwithstanding any other provision of this 
        paragraph, the Secretary may not insure, or enter into 
        a commitment to insure, a mortgage under this section 
        that is executed by a first-time homebuyer and that 
        involves a principal obligation (including such initial 
        service charges, appraisal, inspection, and other fees 
        as the Secretary shall approve) in excess of 97 percent 
        of the appraised value of the property unless the 
        mortgagor has completed a program of counseling with 
        respect to the responsibilities and financial 
        management involved in homeownership that is approved 
        by the Secretary; except that the Secretary may, in the 
        discretion of the Secretary, waive the applicability of 
        this requirement.
          [In conjunction with any loan insured under this 
        section, an original lender shall provide to each 
        prospective borrower a disclosure notice that provides 
        a one page analysis of mortgage products offered by 
        that lender and for which the borrower would qualify. 
        This notice shall include: (i) a generic analysis 
        comparing the note rate (and associated interest 
        payments), insurance premiums, and other costs and fees 
        that would be due over the life of the loan for a loan 
        insured by the Secretary under this subsection with the 
        note rates, insurance premiums (if applicable), and 
        other costs and fees that would be expected to be due 
        if the mortgagor obtained instead other mortgage 
        products offered by the lender and for which the 
        borrower would qualify with a similar loan-to-value 
        ratio in connection with a conventional mortgage (as 
        that term is used in section 305(a)(2) of the Federal 
        Home Loan Mortgage Corporation Act (12 U.S.C. 
        1454(a)(2)) or section 302(b)(2) of the Federal 
        National Mortgage Association Charter Act (12 U.S.C. 
        1717(b)(2)), as applicable), assuming prevailing 
        interest rates; and (ii) a statement regarding when the 
        mortgagor's requirement to pay the mortgage insurance 
        premiums for a mortgage insured under this section 
        would terminate or a statement that the requirement 
        will terminate only if the mortgage is refinanced, paid 
        off, or otherwise terminated.]

           *       *       *       *       *       *       *

          [(10) Calculation of Downpayment.--
                  [(A) In general.--Notwithstanding any other 
                provision of this subsection, with respect to a 
                mortgage closed on or before December 31, 2002, 
                involving a principal obligation not in excess 
                of the sum of--
                          [(i) the amount of the mortgage 
                        insurance premium paid at the time the 
                        mortgage is insured; and
                          [(ii)(I) in the case of a mortgage 
                        for a property with an appraised value 
                        equal to or less than $50,000, 98.75 
                        percent of the appraised value of the 
                        property;
                          [(II) in the case of a mortgage for a 
                        property with an appraised value in 
                        excess of $50,000 but not in excess of 
                        $125,000, 97.65 percent of the 
                        appraised value of the property;
                          [(III) in the case of a mortgage for 
                        a property with an appraised value in 
                        excess of $125,000, 97.15 percent of 
                        the appraised value of the property; or
                          [(IV) notwithstanding subclauses (II) 
                        and (III), in the case of a mortgage 
                        for a property with an appraised value 
                        in excess of $50,000 that is located in 
                        an area of the State for which the 
                        average closing cost exceeds 2.10 
                        percent of the average, for the State, 
                        of the sale price of properties located 
                        in the State for which mortgages have 
                        been executed, 97.75 percent of the 
                        appraised value of the property.
                  [(B) Average closing cost.--For purposes of 
                this paragraph, the term ``average closing 
                cost'' means, with respect to a State, the 
                average, for mortgages executed for properties 
                that are located within the State, of the total 
                amounts (as determined by the Secretary) of 
                initial service charges, appraisal, inspection, 
                and other fees (as the Secretary shall approve) 
                that are paid in connection with such 
                mortgages.]
          (10) Reduced downpayment requirements for teachers 
        and public safety officers.--
                  (A) In general.--Notwithstanding paragraph 
                (2), in the case of a mortgage described in 
                subparagraph (B)--
                          (i) the mortgage shall involve a 
                        principal obligation in an amount that 
                        does not exceed the sum of 99 percent 
                        of the appraised value of the property 
                        and the total amount of initial service 
                        charges, appraisal, inspection, and 
                        other fees (as the Secretary shall 
                        approve) paid in connection with the 
                        mortgage;
                          (ii) no other provision of this 
                        subsection limiting the principal 
                        obligation of the mortgage based upon a 
                        percentage of the appraised value of 
                        the property subject to the mortgage 
                        shall apply; and
                          (iii) the matter in paragraph (9) 
                        that precedes the first proviso shall 
                        not apply and the mortgage shall be 
                        executed by a mortgagor who shall have 
                        paid on account of the property at 
                        least 1 percent of the cost of 
                        acquisition (as determined by the 
                        Secretary) in cash or its equivalent.
                  (B) Mortgages covered.--A mortgage described 
                in this subparagraph is a mortgage--
                          (i) under which the mortgagor is an 
                        individual who--
                                  (I) is (aa) a teacher, or 
                                (bb) a public safety officer; 
                                and
                                  (II) has not, during the 12-
                                month period ending upon the 
                                insurance of the mortgage, had 
                                any present ownership interest 
                                in a principal residence 
                                located in the jurisdiction 
                                described in clause (ii); and
                          (ii) made for a property that is 
                        located within the jurisdiction of--
                                  (I) in the case of a mortgage 
                                of a mortgagor described in 
                                clause (i)(I)(aa), the local 
                                educational agency for the 
                                school in which the mortgagor 
                                is employed (or, in the case of 
                                a mortgagor employed in a 
                                private school, the local 
                                educational agency having 
                                jurisdiction for the area in 
                                which the private school is 
                                located); or
                                  (II) in the case of a 
                                mortgage of a mortgagor 
                                described in clause (i)(I)(bb), 
                                the jurisdiction served by the 
                                public law enforcement agency, 
                                firefighting agency, or rescue 
                                or ambulance agency that 
                                employs the mortgagor.
                  (C) Program integrity.--Notwithstanding any 
                other provision of this paragraph and section 
                203(c)(3), the Secretary may suspend the 
                applicability of this paragraph and such 
                section for such period as the Secretary 
                considers appropriate if the Secretary 
                determines such suspension is necessary because 
                of fraud or other issues regarding program 
                integrity.
    (c)(1) * * *
    (2) [Notwithstanding] Except as provided in paragraph (3) 
and notwithstanding any other provision of this section, each 
mortgage secured by a 1- to 4-family dwelling that is an 
obligation of the Mutual Mortgage Insurance Fund or of the 
General Insurance Fund pursuant to subsection (v) and each 
mortgage that is insured under subsection (k) or section 
234(c),, shall be subject to the following requirements:
          (A) * * *

           *       *       *       *       *       *       *

  (3) Deferral and Reduction of Up-Front Premium.--In the case 
of any mortgage described in subsection (b)(10)(B):
          (A) Paragraph (2)(A) of this subsection (relating to 
        collection of up-front premium payments) shall not 
        apply.
          (B) If, at any time during the 5-year period 
        beginning on the date of the insurance of the mortgage, 
        the mortgagor ceases to be a teacher or public safety 
        officer (as such terms are defined in section 201) or 
        pays the principal obligation of the mortgage in full, 
        the Secretary shall at such time collect a single 
        premium payment in an amount equal to the amount of the 
        single premium payment that, but for this paragraph, 
        would have been required under paragraph (2)(A) of this 
        subsection with respect to the mortgage, as reduced by 
        20 percent of such amount for each successive 12-month 
        period completed during such 5-year period before such 
        cessation or prepayment occurs.

           *       *       *       *       *       *       *

  (f) Disclosure of Other Mortgage Products.--In conjunction 
with any loan insured under this section, an original lender 
shall provide to each prospective borrower a disclosure notice 
that provides a one page analysis of mortgage products offered 
by that lender and for which the borrower would qualify. This 
notice shall include: (i) a generic analysis comparing the note 
rate (and associated interest payments), insurance premiums, 
and other costs and fees that would be due over the life of the 
loan for a loan insured by the Secretary under this subsection 
with the note rates, insurance premiums (if applicable), and 
other costs and fees that would be expected to be due if the 
mortgagor obtained instead other mortgage products offered by 
the lender and for which the borrower would qualify with a 
similar loan-to-value ratio in connection with a conventional 
mortgage (as that term is used in section 305(a)(2) of the 
Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
1454(a)(2)) or section 302(b)(2) of the Federal National 
Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), as 
applicable), assuming prevailing interest rates; and (ii) a 
statement regarding when the mortgagor's requirement to pay the 
mortgage insurance premiums for a mortgage insured under this 
section would terminate or a statement that the requirement 
will terminate only if the mortgage is refinanced, paid off, or 
otherwise terminated.
  (g)(1) * * *
  (2) The occupancy requirement established in paragraph (1) 
shall not apply to any mortgagor (or co-mortgagor, as 
appropriate) that is--
          (A) * * *

           *       *       *       *       *       *       *

          (D) a serviceperson who is unable to meet such 
        requirement because of his or her duty assignment, as 
        provided in section 216 or subsection (b)(4) or (f) of 
        section 222; or
          [(E) a mortgagor or co-mortgagor under subsection 
        (k); or]
          [(F)] (E) a mortgagor that, pursuant to section 
        223(a)(7), is refinancing an existing mortgage insured 
        under this Act for not more than the outstanding 
        balance of the existing mortgage, if the amount of the 
        monthly payment due under the refinancing mortgage is 
        less than the amount due under the existing mortgage 
        for the month in which the refinancing mortgage is 
        executed.

           *       *       *       *       *       *       *

    (k)(1) * * *

           *       *       *       *       *       *       *

    (3) To be eligible for insurance under this subsection, a 
rehabilitation loan shall--
          (A) * * *

           *       *       *       *       *       *       *

          (C) involve a loan agreement containing such terms 
        and conditions as the Secretary shall provide, 
        including terms and conditions that provide that the 
        mortgagee shall be responsible for--
                  (i) choosing an inspector or consultant who 
                shall--
                          (I) meet the standards as the 
                        Secretary shall establish; and
                          (II) be an agent of the mortgagee; 
                        and
                  (ii) approving advances under the loan;
          [(C)] (D) be an acceptable risk, as determined by the 
        Secretary; and
          [(D)] (E) comply with such other terms, conditions, 
        and restrictions as the Secretary may prescribe.

           *       *       *       *       *       *       *


                          PAYMENT OF INSURANCE

  Sec. 204. (a) * * *

           *       *       *       *       *       *       *

    (g)(1) Notwithstanding any other provision of law relating 
to the acquisition, handling, or disposal of real property by 
the United States, the Secretary shall have power to deal with, 
complete, rent, renovate, modernize, insure, or sell for cash 
or credit, in his discretion, any properties conveyed to him in 
exchange for debentures and certificates of claim as provided 
in this section; and notwithstanding any other provision of 
law, the Secretary shall also have power to pursue to final 
collection, by way of compromise or otherwise, all claims 
against mortgagors assigned by mortgagees to the Secretary as 
provided in this section: Provided, That section 3709 of the 
Revised Statutes shall not be construed to apply to any 
contract for hazard insurance, or to any purchase or contract 
for services or supplies on account of such property if the 
amount thereof does not exceed $1,000. The Secretary shall, by 
regulation, carry out a program of sales of such properties and 
shall develop and implement appropriate credit terms and 
standards to be used in carrying out the program. The power to 
convey and to execute in the name of the Secretary deeds of 
conveyance, deeds of release, assignments and satisfactions of 
mortgages, and any other written instrument relating to real or 
personal property or any interest therein heretofore or 
hereafter acquired by the Secretary pursuant to the provisions 
of this Act, may be exercised by an officer appointed by him, 
without the execution of any express delegation of power or 
power of attorney: Provided, That nothing in this subsection 
shall be construed to prevent the Secretary from delegating 
such power by order or by power of attorney, in his discretion, 
to any officer, agent, or employee he may appoint: And provided 
further, That a conveyance or transfer of title to real or 
personal property or an interest therein to the Secretary of 
Housing and Urban Development, his successors and assigns, 
without identifying the Secretary therein, shall be deemed a 
proper conveyance or transfer to the same extent and of like 
effect as if the Secretary were personally named in such 
conveyance or transfer. The Secretary may sell real and 
personal property acquired by the Secretary pursuant to the 
provisions of this Act on such terms and conditions as the 
Secretary may prescribe.
  (2) The Secretary shall require, as a condition of 
eligibility of any nonprofit organization for participation in 
any program of the Secretary for disposition of 1- to 4-family 
properties acquired by the Secretary pursuant to this Act, the 
Secretary shall require that such organization--
          (A) has nonprofit status as demonstrated by approval 
        under section 501(c)(3) of the Internal Revenue Code of 
        1986 (26 U.S.C. 501(c)(3)) or demonstrates that an 
        application for such status is currently pending 
        approval; and
          (B) provide the Secretary with a copy of the 
        application for such status;
          (C) certify, on an annual basis, that the 
        organization has been apprised of the applicable rules 
        and guidelines of the Department of Housing and Urban 
        Development and understands such rules and guidelines; 
        and
          (D) comply with such other requirements as the 
        Secretary may establish.
  (h) Disposition of Assets in Revitalization Areas.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Preference for sale to preferred purchasers.--The 
        Secretary shall provide a preference, among prospective 
        purchasers of eligible assets, for sale of such assets 
        to any purchaser who--
                  (A) * * *
                  (B) in making a purchase under the program 
                under this subsection--
                          (i) * * *
                          (ii) purchases all interests of the 
                        Secretary in all assets of the 
                        Secretary that, at any time during the 
                        period which shall be set forth in the 
                        sale agreement required under paragraph 
                        [(7)] (8)--
                                  (I) are or become eligible 
                                assets; and
                                  (II) are located in the asset 
                                control area of the purchaser; 
                                and

           *       *       *       *       *       *       *

          (5) Agreements Required for Purchase.--
                  (A) * * *
                  (B) Non-preferred purchasers.--Under the 
                program under this subsection, the Secretary 
                may sell an eligible asset to a purchaser who 
                is not a preferred purchaser only pursuant to a 
                binding agreement by the purchaser that 
                complies with the following requirements:
                          (i) The purchaser has agreed to meet 
                        specific performance goals established 
                        by the Secretary for home ownership of 
                        the asset properties for the eligible 
                        assets purchased by the purchaser, 
                        except that the Secretary may, by 
                        including a provision in the sale 
                        agreement required under paragraph 
                        [(7)] (8), provide for a lower rate of 
                        home ownership in sales involving 
                        exceptional circumstances.

           *       *       *       *       *       *       *

          (6) Discount for preferred purchasers.--
                  (A) In general.--For the purpose of providing 
                a public purpose discount for the bulk sales of 
                eligible assets made under the program under 
                this subsection by preferred purchasers, each 
                eligible asset sold through the program under 
                this subsection to a preferred purchaser shall 
                be sold at a price that is discounted from the 
                value of the asset, as based on the appraised 
                value of the asset property (as such term is 
                defined in paragraph [(8)] (9)).

           *       *       *       *       *       *       *

          (7) 50 percent discount for teachers and public 
        safety officers purchasing properties that are eligible 
        assets.--
                  (A) Discount.--A property that is an eligible 
                asset and is sold, during fiscal years 2002 
                through 2006, to a teacher or public safety 
                officer for use in accordance with subparagraph 
                (B) shall be sold at a price that is equal to 
                50 percent of the appraised value of the 
                eligible property (as determined in accordance 
                with paragraph (6)(B)). In the case of a 
                property eligible for both a discount under 
                this paragraph and a discount under paragraph 
                (6), the discount under paragraph (6) shall not 
                apply.
                  (B) Primary residence.--An eligible property 
                sold pursuant to a discount under this 
                paragraph shall be used, for not less than the 
                3-year period beginning upon such sale, as the 
                primary residence of a teacher or public safety 
                officer.
                  (C) Sale methods.--The Secretary may sell an 
                eligible property pursuant to a discount under 
                this paragraph--
                          (i) to a unit of general local 
                        government or nonprofit organization 
                        (pursuant to paragraph (4) or 
                        otherwise), for resale or transfer to a 
                        teacher or public safety officer; or
                          (ii) directly to a purchaser who is a 
                        teacher or public safety officer.
                  (D) Resale.--In the case of any purchase by a 
                unit of general local government or nonprofit 
                organization of an eligible property sold at a 
                discounted price under this paragraph, the sale 
                agreement under paragraph (8) shall--
                          (i) require the purchasing unit of 
                        general local government or nonprofit 
                        organization to provide the full 
                        benefit of the discount to the teacher 
                        or public safety officer obtaining the 
                        property; and
                          (ii) in the case of a purchase 
                        involving multiple eligible assets, any 
                        of which is such an eligible property, 
                        designate the specific eligible 
                        property or properties to be subject to 
                        the requirements of subparagraph (B).
                  (E) Mortgage downpayment assistance.--If a 
                teacher or public safety officer purchases an 
                eligible property pursuant to a discounted sale 
                price under this paragraph and finances such 
                purchase through a mortgage insured under this 
                title, notwithstanding any provision of section 
                203 the downpayment on such mortgage shall be 
                $100.
                  (F) Prevention of undue profit.--The 
                Secretary shall issue regulations to prevent 
                undue profit from the resale of eligible 
                properties in violation of the requirement 
                under subparagraph (B).
                  (G) Definitions.--For the purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) The term ``eligible property'' 
                        means an eligible asset described in 
                        paragraph (2)(A) of this subsection.
                          (ii) The terms ``teacher'' and 
                        ``public safety officer'' have the 
                        meanings given such terms in section 
                        201.
                  (H) Program integrity.--Notwithstanding any 
                other provision of this paragraph, the 
                Secretary may suspend the applicability of this 
                paragraph for such period as the Secretary 
                considers appropriate if the Secretary 
                determines such suspension is necessary because 
                of fraud or other issues regarding program 
                integrity.
          [(7)] (8) Sale agreement.--The Secretary may sell an 
        eligible asset under this subsection only pursuant to a 
        sale agreement entered into under this paragraph with 
        the purchaser, which shall include the following 
        provisions:
                  (A) * * *

           *       *       *       *       *       *       *

          [(8)] (9) Definitions.--For purposes of this 
        subsection, the following definitions shall apply:
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) Nonprofit organization.--The term 
                ``nonprofit organization'' means a private 
                organization that--
                          (i) is organized under State or local 
                        laws;
                          [(ii) has no part of its net earnings 
                        inuring to the benefit of any member, 
                        shareholder, founder, contributor, or 
                        individual; and]
                          (ii)(I) has nonprofit status as 
                        demonstrated by approval under section 
                        501(c)(3) of the Internal Revenue Code 
                        of 1986 (26 U.S.C. 501(c)(3)) or 
                        demonstrates that an application for 
                        such status is currently pending 
                        approval; and
                          (II) provides the Secretary with a 
                        copy of the application for such 
                        status;
                          (iii) complies with standards of 
                        financial responsibility that the 
                        Secretary may require[.]; and
                          (iv) certifies, on an annual basis, 
                        that the organization has been apprised 
                        of the applicable rules and guidelines 
                        of the Department of Housing and Urban 
                        Development and understands such rules 
                        and guidelines.

           *       *       *       *       *       *       *

          [(9)] (10) Secretary's discretion.--The Secretary 
        shall have the authority to implement and administer 
        the program under this subsection in such manner as the 
        Secretary may determine. The Secretary may, in the sole 
        discretion of the Secretary, enter into contracts to 
        provide for the proper administration of the program 
        with such public or nonprofit entities as the Secretary 
        determines are qualified.
          [(10)] (11) Regulations.--The Secretary shall issue 
        regulations to implement the program under this 
        subsection through rulemaking in accordance with the 
        procedures established under section 553 of title 5, 
        United States Code, regarding substantive rules. Such 
        regulations shall take effect not later than the 
        expiration of the 2-year period beginning on the date 
        of the enactment of the Departments of Veterans Affairs 
        and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 1999.

           *       *       *       *       *       *       *


                        RENTAL HOUSING INSURANCE

    Sec. 207. (a) * * *

           *       *       *       *       *       *       *

    (c) To be eligible for insurance under this section a 
mortgage on any property or project shall involve a principal 
obligation in an amount--
          (2) * * *
          (3) not to exceed, for such part of the property or 
        projects as may be attributable to dwelling use 
        (excluding exterior and land improvements as defined by 
        the Secretary), $38,025 per family unit without 
        bedroom, $42,120 per family unit with one bedroom, 
        $50,310 per family unit with two bedrooms, $62,010 per 
        family unit with three bedrooms, and $70,200 per family 
        unit with four or more bedrooms, or not to exceed 
        [$11,250] $17,460 per space; except that as to projects 
        to consist of elevator-type structures the Secretary 
        may, in his discretion, increase the dollar amount 
        limitations per family unit to not to exceed $43,875 
        per family unit without a bedroom, $49,140 per family 
        unit with one bedroom, $60,255 per family unit with two 
        bedrooms, $75,465 per family unit with three bedrooms, 
        and $85,328 per family unit with four or more bedrooms, 
        as the case may be, to compensate for the higher costs 
        incident to the construction of elevator type 
        structures of sound standards of construction and 
        design; except that the Secretary shall adjust each 
        such dollar amount limitation set forth in this 
        paragraph (as such limitation may have been previously 
        adjusted pursuant to this provision) effective January 
        1 of each year (beginning in 2003) in accordance with 
        the percentage increase, if any, during the 12-month 
        period ending with the preceding October, in the Annual 
        Construction Cost Index of the Bureau of the Census of 
        the Department of Commerce; and except that the 
        Secretary may, by regulation, increase any of the 
        foregoing dollar amount limitations contained in this 
        paragraph (as such limitations may have been previously 
        adjusted pursuant to this paragraph) by not to exceed 
        [110] 140 percent in any geographical area where the 
        Secretary finds that cost levels so require and not to 
        exceed [140] 170 percent where the Secretary determines 
        it necessary on a project-by-project basis, but in no 
        case may any such increase exceed 90 percent where the 
        Secretary determines that a mortgage purchased or to be 
        purchased by the Government National Mortgage 
        Association in implementing its special assistance 
        functions under section 305 of this Act (as such 
        section existed immediately before November 30, 1983) 
        is involved.

           *       *       *       *       *       *       *


                     COOPERATIVE HOUSING INSURANCE

    Sec. 213. (a) * * *
    (b) To be eligible for insurance under this section a 
mortgage on any property or project of a corporation or trust 
of the character described in paragraph numbered (1) of 
subsection (a) of this section shall involve a principal 
obligation in an amount--
          (2) not to exceed, for such part of the property or 
        project as may be attributable to dwelling use 
        (excluding exterior land improvements as defined by the 
        Secretary), [$38,025] $41,207 per family unit without a 
        bedroom, [$42,120] $47,511 per family unit with one 
        bedroom, [$50,310] $57,300 per family unit with two 
        bedrooms, [$62,010] $73,343 per family unit with three 
        bedrooms, and [$70,200] $81,708 per family unit with 
        four or more bedrooms, and not to exceed 98 per centum 
        of the amount which the Secretary estimates will be the 
        replacement cost of the property or project when the 
        proposed physical improvements are completed: Provided, 
        That as to projects to consist of elevator-type 
        structures the Secretary may, in his discretion, 
        increase the dollar amount limitations per family unit 
        to not to exceed $43,875 per family unit without a 
        bedroom, [$49,140] $49,710 per family unit with one 
        bedroom, [$60,255] $60,446 per family unit with two 
        bedrooms, [$75,465] $78,197 per family unit with three 
        bedrooms, and [$85,328] $85,836 per family unit with 
        four or more bedrooms, as the case may be, to 
        compensate for the higher cost incident to the 
        construction of elevator-type structures of sound 
        standards of construction and design: Provided further, 
        That the Secretary shall adjust each such dollar amount 
        limitation set forth in this paragraph (as such 
        limitation may have been previously adjusted pursuant 
        to this provision) effective January 1 of each year 
        (beginning in 2003) in accordance with the percentage 
        increase, if any, during the 12-month period ending 
        with the preceding October, in the Annual Construction 
        Cost Index of the Bureau of the Census of the 
        Department of Commerce: Provided further, That the 
        Secretary may, by regulation, increase any of the 
        foregoing dollar amount limitations contained in this 
        paragraph (as such limitations may have been previously 
        adjusted pursuant to this paragraph) by not to exceed 
        [110] 140 percent in any geographical area where the 
        Secretary finds that cost levels so require and not to 
        exceed [140] 170 percent where the Secretary determines 
        it necessary on a project-by-project basis, but in no 
        case may any such increase exceed 90 percent where the 
        Secretary determines that a mortgage purchased or to be 
        purchased by the Government National Mortgage 
        Association in implementing its special assistance 
        functions under section 305 of this Act (as such 
        section existed immediately before November 30, 1983) 
        is involved: Provided further, That in the case of a 
        mortgagor of the character described in paragraph (3) 
        of subsection (a) the mortgage shall involve a 
        principal obligation in an amount not to exceed 90 per 
        centum of the amount which the Secretary estimates will 
        be the replacement cost of the property or project when 
        the proposed physical improvements are completed: And 
        provided further, That upon the sale of a property or 
        project by a mortgagor of the character described in 
        paragraph (3) of subsection (a) to a nonprofit 
        cooperative ownership housing corporation or trust 
        within two years after the completion of such property 
        or project the mortgage given to finance such sale 
        shall involve a principal obligation in an amount not 
        to exceed the maximum amount computed in accordance 
        with this subsection without regard to the preceding 
        proviso.

           *       *       *       *       *       *       *


     REHABILITATION AND NEIGHBORHOOD CONSERVATION HOUSING INSURANCE

    Sec. 220. (a) * * *

           *       *       *       *       *       *       *

    (d) To be eligible for insurance under this section a 
mortgage shall meet the following conditions:
          (1) * * *

           *       *       *       *       *       *       *

          (3) The mortgage shall--
                  (A) * * *
                  (B)(ii) * * *
                  (iii) not to exceed, for such part of the 
                property or project as may be attributable to 
                dwelling use (excluding exterior land 
                improvements as defined by the Secretary), 
                $38,025 per family unit without a bedroom, 
                $42,120 per family unit with one bedroom, 
                $50,310 per family unit with two bedrooms, 
                $62,010 per family unit with three bedrooms, 
                and $70,200 per family unit with four or more 
                bedrooms, except that as to projects to consist 
                of elevator-type structures the Secretary may, 
                in his discretion, increase the dollar amount 
                limitations per family unit not to exceed 
                $43,875 per family unit without a bedroom, 
                $49,140 per family unit with one bedroom, 
                $60,255 per family unit with two bedrooms, 
                $75,465 per family unit with three bedrooms, 
                and $85,328 per family unit with four or more 
                bedrooms, as the case may be, to compensate for 
                the higher costs incident to the construction 
                of elevator-type structures of sound standards 
                of construction and design; and except that 
                with respect to rehabilitation projects 
                involving not more than five family units, the 
                Secretary may by regulation increase by 25 per 
                centum any of the foregoing dollar amount 
                limitations contained in this clause (as such 
                limitations may have been previously adjusted 
                pursuant to this clause) which are applicable 
                to units with two, three, or four or more 
                bedrooms: Provided, That the Secretary shall 
                adjust each such dollar amount limitation set 
                forth in this clause (as such limitation may 
                have been previously adjusted pursuant to this 
                provision) effective January 1 of each year 
                (beginning in 2003) in accordance with the 
                percentage increase, if any, during the 12-
                month period ending with the preceding October, 
                in the Annual Construction Cost Index of the 
                Bureau of the Census of the Department of 
                Commerce: Provided further, That the Secretary 
                may, by regulation, increase any of the 
                foregoing dollar amount limitations contained 
                in this clause [(as determined after the 
                application of the preceding proviso)] (as such 
                limitations may have been previously adjusted 
                pursuant to the preceding proviso and as 
                determined after application of any percentage 
                increase authorized in this clause relating to 
                units with two, three, or four or more 
                bedrooms) by not to exceed [110] 140 percent in 
                any geographical area where the Secretary finds 
                that cost levels so require and by not to 
                exceed [140] 170 percent where the Secretary 
                determines it necessary on a project-by-project 
                basis, but in no case may any such increase 
                exceed 90 percent where the Secretary 
                determines that a mortgage purchased or to be 
                purchased by the Government National Mortgage 
                Association in implementing its special 
                assistance functions under section 305 of this 
                Act (as such section existed immediately before 
                November 30, 1983) is involved): Provided 
                further, That nothing contained in this 
                subparagraph shall preclude the insurance of 
                mortgages covering existing multifamily 
                dwellings to be rehabilitated or reconstructed 
                for the purposes set forth in subsection (a) of 
                this section: And provided further, That the 
                Secretary may further increase any of the 
                dollar amount limitations which would otherwise 
                apply for the purpose of this clause by not to 
                exceed 20 per centum if such increase is 
                necessary to account for the increased cost of 
                the project due to the installation therein of 
                a solar energy system (as defined in 
                subparagraph (3) of the last paragraph of 
                section 2(a) of this Act) or residential energy 
                conservation measures (as defined in section 
                210(11)(A) through (G) and (I) of Public Law 
                95-619) in cases where the Secretary determines 
                that such measures are in addition to those 
                required under the minimum property standards 
                and will be cost-effective over the life of the 
                measure; and

           *       *       *       *       *       *       *


           HOUSING FOR MODERATE INCOME AND DISPLACED FAMILIES

    Sec. 221. (a) * * *

           *       *       *       *       *       *       *

    (d) To be eligible for insurance under this section, a 
mortgage shall--
          (1) * * *

           *       *       *       *       *       *       *

          (3) if executed by a mortgagor which is a public body 
        or agency (and, except with respect to a project 
        assisted or to be assisted pursuant to section 8 of the 
        United States Housing Act of 1937, which certifies that 
        it is not receiving financial assistance from the 
        United States exclusively pursuant to such Act), a 
        cooperative (including an investor-sponsor who meets 
        such requirements as the Secretary may impose to assure 
        that the consumer interest is protected), or a limited 
        dividend corporation (as defined by the Secretary), or 
        a private nonprofit corporation or association, or 
        other mortgagor approved by the Secretary, and 
        regulated or supervised under Federal or State laws or 
        by political subdivisions of States, or agencies 
        thereof, or by the Secretary under a regulatory 
        agreement or otherwise, as to rents, charges, and 
        methods of operation, in such form and in such manner 
        as in the opinion of the Secretary will effectuate the 
        purposes of this section--
                  (ii) not exceed, for such part of the 
                property or project as may be attributable to 
                dwelling use (excluding exterior land 
                improvements as defined by the Secretary), 
                $42,048 per family unit without a bedroom, 
                $48,481 per family unit with one bedroom, 
                $58,469 per family unit with two bedrooms, 
                $74,840 per family unit with three bedrooms, 
                and $83,375 per family unit with four or more 
                bedrooms; except that as to projects to consist 
                of elevator-type structures the Secretary may, 
                in his discretion, increase the dollar amount 
                limitations per family unit to not to exceed 
                $44,250 per family unit without a bedroom, 
                $50,724 per family unit with one bedroom, 
                $61,680 per family unit with two bedrooms, 
                $79,793 per family unit with three bedrooms, 
                and $87,588 per family unit with four or more 
                bedrooms, as the case may be, to compensate for 
                the higher costs incident to the construction 
                of elevator-type structures of sound standards 
                of construction and design; except that the 
                Secretary shall adjust each such dollar amount 
                limitation set forth in this clause (as such 
                limitation may have been previously adjusted 
                pursuant to this provision) effective January 1 
                of each year (beginning in 2003) in accordance 
                with the percentage increase, if any, during 
                the 12-month period ending with the preceding 
                October, in the Annual Construction Cost Index 
                of the Bureau of the Census of the Department 
                of Commerce; and except that the Secretary may, 
                by regulation, increase any of the foregoing 
                dollar amount limitations contained in this 
                clause (as such limitations may have been 
                previously adjusted pursuant to this clause) 
                and by not to exceed [110] 140 percent in any 
                geographical area where the Secretary finds 
                that cost levels so require and by not to 
                exceed [140] 170 percent where the Secretary 
                determines it necessary on a project-by-project 
                basis, but in no case may any such increase 
                exceed 90 percent where the Secretary 
                determines that a mortgage purchased or to be 
                purchased by the Government National Mortgage 
                Association in implementing its special 
                assistance functions under section 305 of this 
                Act (as such section existed immediately before 
                November 30, 1983) is involved; and

           *       *       *       *       *       *       *

          (4) if executed by a mortgagor and which is approved 
        by the Secretary--
                  (ii) not exceed, or such part of the property 
                or project as may be attributable to dwelling 
                use (excluding exterior land improvements as 
                defined by the Secretary), $37,843 per family 
                unit without a bedroom, $42,954 per family unit 
                with one bedroom, $51,920 per family unit with 
                two bedrooms, $65,169 per family unit with 
                three bedrooms, and $73,846 per family unit 
                with four or more bedrooms; except that as to 
                projects to consist of elevator-type structures 
                the Secretary may, in his discretion, increase 
                the dollar amount limitations per family unit 
                to not to exceed $40,876 per family unit 
                without a bedroom, $46,859 per family unit with 
                one bedroom, $56,979 per family unit with two 
                bedrooms, $73,710 per family unit with three 
                bedrooms, and $80,913 per family unit with four 
                or more bedrooms, as the case may be, to 
                compensate for the higher costs incident to the 
                construction of elevator-type structures of 
                sound standards of construction and design; 
                except that the Secretary shall adjust each 
                such dollar amount limitation set forth in this 
                clause (as such limitation may have been 
                previously adjusted pursuant to this provision) 
                effective January 1 of each year (beginning in 
                2003) in accordance with the percentage 
                increase, if any, during the 12-month period 
                ending with the preceding October, in the 
                Annual Construction Cost Index of the Bureau of 
                the Census of the Department of Commerce; and 
                except that the Secretary may, by regulation, 
                increase any of the foregoing dollar amount 
                limitations contained in this clause (as such 
                limitations may have been previously adjusted 
                pursuant to this clause) by not to exceed [110] 
                140 percent in any geographical area where the 
                Secretary finds that cost levels so require and 
                by not to exceed [140] 170 percent where the 
                Secretary determines it necessary on a project-
                by-project basis, but in no case may any such 
                increase exceed 90 percent where the Secretary 
                determines that a mortgage purchased or to be 
                purchased by the Government National Mortgage 
                Association in implementing its special 
                assistance functions under section 305 of this 
                Act (as such section existed immediately before 
                November 30, 1983) is involved;

           *       *       *       *       *       *       *


                      HOUSING FOR ELDERLY PERSONS

    Sec. 231. (a) * * *

           *       *       *       *       *       *       *

    (c) To be eligible for insurance under this section, a 
mortgage to provide housing for elderly persons shall--
          (2) not to exceed, for such part of the property or 
        project as may be attributable to dwelling use 
        (excluding exterior land improvement as defined by the 
        Secretary), $35,978 per family unit without a bedroom, 
        $40,220 per family unit with one bedroom, $48,029 per 
        family unit with two bedrooms, $57,798 per family unit 
        with three bedrooms, and $67,950 per family unit with 
        four or more bedrooms; except that as to projects to 
        consist of elevator-type structures the Secretary may, 
        in his discretion, increase the dollar amount 
        limitations per family unit to not to exceed $40,876 
        per family unit without a bedroom, $46,859 per family 
        unit with one bedroom, $56,979 per family unit with two 
        bedrooms, $73,710 per family unit with three bedrooms, 
        and $80,913 per family unit with four or more bedrooms, 
        as the case may be, to compensate for the higher costs 
        incident to the construction of elevator-type 
        structures of sound standards of construction and 
        design; except that the Secretary shall adjust each 
        such dollar amount limitation set forth in this 
        paragraph (as such limitation may have been previously 
        adjusted pursuant to this provision) effective January 
        1 of each year (beginning in 2003) in accordance with 
        the percentage increase, if any, during the 12-month 
        period ending with the preceding October, in the Annual 
        Construction Cost Index of the Bureau of the Census of 
        the Department of Commerce; and except that the 
        Secretary may, by regulation, increase any of the 
        foregoing dollar amount limitations contained in this 
        paragraph (as such limitations may have been previously 
        adjusted pursuant to this paragraph) by not to exceed 
        [110] 140 percent in any geographical area where the 
        Secretary finds that cost levels so require and by not 
        to exceed [140] 170 percent where the Secretary 
        determines it necessary on a project-by-project basis, 
        but in no case may any such increase exceed 90 percent 
        where the Secretary determines that a mortgage 
        purchased or to be purchased by the Government National 
        Mortgage Association in implementing its special 
        assistance functions under section 305 of this Act (as 
        such section existed immediately before November 30, 
        1983) is involved: Provided, That the Secretary may 
        further increase the dollar amount limitations which 
        would otherwise apply for the purpose of this section 
        by not to exceed 20 per centum if such increase is 
        necessary to account for the increased cost of the 
        project due to the installation therein of a solar 
        energy system (as defined in subparagraph (3) of the 
        last paragraph of section 2(a) of this Act) or 
        residential energy conservation measures (as defined in 
        section 210(11) (A) through (G) and (I) of Public Law 
        95-619) in cases where the Secretary determines that 
        such measures are in addition to those required under 
        the minimum property standards and will be cost-
        effective over the life of the measure;

           *       *       *       *       *       *       *


MORTGAGE INSURANCE FOR NURSING HOMES, INTERMEDIATE CARE FACILITIES, AND 
                          BOARD AND CARE HOMES

    Sec. 232. (a) * * *

           *       *       *       *       *       *       *

    (d) In order to carry out the purpose of this section, the 
Secretary is authorized to insure any mortgage which covers a 
new or rehabilitated nursing home, assisted living facility, or 
intermediate care facility, including a new addition to an 
existing nursing home, assisted living facility, or 
intermediate care facility and regardless of whether the 
existing home or facility is being rehabilitated, or any 
combination of nursing home, assisted living facility, and 
intermediate care facility or a board and care home including 
equipment to be used in its operation, subject to the following 
conditions:
          (1) * * *

           *       *       *       *       *       *       *

          [(4)(A) With respect to nursing homes and 
        intermediate care facilities and combined nursing home 
        and intermediate care facilities, the Secretary shall 
        not insure any mortgage under this section unless he 
        has received, from the State agency designated in 
        accordance with section 604(a)(1) or section 1521 of 
        the Public Health Service Act for the State in which is 
        located the nursing home or intermediate care facility 
        or combined nursing home and intermediate care facility 
        covered by the mortgage, a certification that (i) there 
        is a need for such home or facility or combined home 
        and facility, and (ii) there are in force in such State 
        or in the municipality or other political subdivision 
        of the State in which the proposed home or facility or 
        combined home and facility is to be located reasonable 
        minimum standards of licensure and methods of operation 
        governing it. No such mortgage shall be insured under 
        this section unless the Secretary has received such 
        assurance as he may deem satisfactory from the State 
        agency that such standards will be applied and enforced 
        with respect to any home or facility or combined home 
        and facility located in the State for which mortgage 
        insurance is provided under this section. If no such 
        State agency exists, or if the State agency exists but 
        is not empowered to provide a certification that there 
        is a need for the home or facility or combined home and 
        facility as required in clause (i) of the first 
        sentence, the Secretary shall not insure any mortgage 
        under this section unless (i) the State in which the 
        home or facility or combined home and facility is 
        located has conducted or commissioned and paid for the 
        preparation of an independent study of market need and 
        feasibility that (I) is prepared in accordance with the 
        principles established by the American Institute of 
        Certified Public Accountants; (II) assesses, on a 
        marketwide basis, the impact of the proposed home or 
        facility or combined home and facility on, and its 
        relationship to, other health care facilities and 
        services, the percentage of excess beds, demographic 
        projections, alternative health care delivery systems, 
        and the reimbursement structure of the home, facility, 
        or combined home and facility; (III) is addressed to 
        and is acceptable to the Secretary in form and 
        substance; and (IV) in the event the State does not 
        prepare the study, is prepared by a financial 
        consultant who is selected by the State or the 
        applicant for mortgage insurance and is approved by the 
        Secretary; and (ii) the State complies with the other 
        provisions of this subparagraph that would otherwise be 
        required to be met by a State agency designated in 
        accordance with section 604(a)(1) or section 1521 of 
        the Public Health Service Act. The proposed mortgagor 
        may reimburse the State for the cost of the independent 
        feasibility study required in the preceding sentence. 
        In the case of a small intermediate care facility for 
        the mentally retarded or developmentally disabled, or a 
        board and care home housing less than 10 individuals, 
        the State program agency or agencies responsible for 
        licensing, certifying, financing, or monitoring the 
        facility or home may, in lieu of the requirements of 
        clause (i) of the third sentence, provide the Secretary 
        with written support identifying the need for the 
        facility or home.]
          (4)(A)(i) The Secretary shall require satisfactory 
        evidence that a nursing home, intermediate care 
        facility, or combined nursing home and intermediate 
        care facility will be located in a State or political 
        subdivision of a State with reasonable minimum 
        standards of licensure and methods of operation for 
        such homes, facilities, or combined homes and 
        facilities. The Secretary shall also require 
        satisfactory assurance that such standards will be 
        applied and enforced with respect to the home, 
        facility, or combined home or facility.
          (ii) The Secretary shall establish the means for 
        determining need and feasibility for the home, 
        facility, or combined home and facility. If the State 
        has an official procedure for determining need for such 
        homes, facilities, or combined homes and facilities, 
        the Secretary shall also require that such procedure be 
        followed before the application for insurance is 
        submitted, and the application shall document that need 
        has also been established under that procedure.

           *       *       *       *       *       *       *


                  MORTGAGE INSURANCE FOR CONDOMINIUMS

    Sec. 234. (a) * * *

           *       *       *       *       *       *       *

    (e) To be eligible for insurance, a blanket mortgage on any 
multi-family project of a mortgagor of the character described 
in subsection (d) shall involve a principal obligation in an 
amount--
          (2) * * *
          (3) not to exceed, for such part of the project as 
        may be attributable to dwelling use (excluding exterior 
        land improvements as defined by the Secretary), $38,025 
        per family unit without a bedroom, $42,120 per family 
        unit with one bedroom, $50,310 per family unit with two 
        bedrooms, $62,010 per family unit with three bedrooms, 
        and $70,200 per family unit with four or more bedrooms; 
        except that as to projects to consist of elevator-type 
        structures the Secretary may, in his discretion, 
        increase the dollar amount limitations per family unit 
        to not to exceed $43,875 per family unit without a 
        bedroom, $49,140 per family unit with one bedroom, 
        $60,255 per family unit with two bedrooms, $75,465 per 
        family unit with three bedrooms, and $85,328 per family 
        unit with four or more bedrooms, as the case may be, to 
        compensate for higher costs incident to the 
        construction of elevator-type structures of sound 
        standards of construction and design; except that the 
        Secretary shall adjust each such dollar amount 
        limitation set forth in this paragraph (as such 
        limitation may have been previously adjusted pursuant 
        to this provision) effective January 1 of each year 
        (beginning in 2003) in accordance with the percentage 
        increase, if any, during the 12-month period ending 
        with the preceding October, in the Annual Construction 
        Cost Index of the Bureau of the Census of the 
        Department of Commerce; except that each of the 
        foregoing dollar amounts (as such amounts may have been 
        previously adjusted pursuant to this paragraph) is 
        increased to the amount established for a comparable 
        unit in section 221(d)(3)(ii); and except that the 
        Secretary may, by regulation, increase any of the 
        foregoing dollar amount limitations contained in this 
        paragraph (as such limitations may have been previously 
        adjusted pursuant to this paragraph and increased 
        pursuant to the preceding clause) and by not to exceed 
        [110] 140 percent in any geographical area where the 
        Secretary finds that cost levels so require and by not 
        to exceed [140] 170 percent where the Secretary 
        determines it necessary on a project-by-project basis, 
        but in no case may any such increase exceed 90 percent 
        where the Secretary determines that a mortgage 
        purchased or to be purchased by the Government National 
        Mortgage Association in implementing its special 
        assistance functions under section 305 of this Act (as 
        such section existed immediately before November 30, 
        1983) is involved; and

           *       *       *       *       *       *       *


                    MORTGAGE INSURANCE FOR HOSPITALS

    Sec. 242. (a) * * *

           *       *       *       *       *       *       *

    (d) In order to carry out the purpose of this section, the 
Secretary is authorized to insure any mortgage which covers a 
new or rehabilitated hospital, including equipment to be used 
in its operation, subject to the following conditions:
          (1) * * *

           *       *       *       *       *       *       *

          [(4) The Secretary shall not insure any mortgage 
        under this section unless he has received, from the 
        State agency designated in accordance with section 
        604(a)(1) or section 1521 of the Public Health Service 
        Act for the State in which is located the hospital 
        covered by the mortgage, a certification that (A) there 
        is a need for such hospital, and (B) there are in force 
        in such State or the political subdivision of the State 
        in which the proposed hospital would be located 
        reasonable minimum standards of licensure and methods 
        of operation for hospitals. No such mortgage shall be 
        insured under this section unless the Secretary has 
        received such assurance as he may deem satisfactory 
        from the State agency that such standards will be 
        applied and enforced with respect to any hospital 
        located in the State for which mortgage insurance is 
        provided under this section. If no such State agency 
        exists, or if the State agency exists but is not 
        empowered to provide a certification that there is a 
        need for the hospital as set forth in clause (A) of the 
        first sentence, the Secretary shall not insure any 
        mortgage under this section unless (A) the State in 
        which the hospital is located has conducted or 
        commissioned and paid for the preparation of an 
        independent study of market need and feasibility that 
        (i) is prepared in accordance with the principles 
        established by the American Institute of Certified 
        Public Accountants; (ii) assesses, on a marketwide 
        basis, the impact of the proposed hospital on, and its 
        relationship to, other health care facilities and 
        services, the percentage of excess beds, demographic 
        projections, alternative health care delivery systems, 
        and the reimbursement structure of the hospital; (iii) 
        is addressed to and is acceptable to the Secretary in 
        form and substance; and (iv) in the event the State 
        does not prepare the study, is prepared by a financial 
        consultant selected by the State and approved by the 
        Secretary; and (B) the State complies with the other 
        provisions of this paragraph that would otherwise be 
        required to be met by a State agency designated in 
        accordance with section 604(a)(1) or section 1521 of 
        the Public Health Service Act. The proposed mortgagor 
        may reimburse the State for the cost of the independent 
        feasibility study required in the preceding sentence.]
          (4)(A) The Secretary shall require satisfactory 
        evidence that the hospital will be located in a State 
        or political subdivision of a State with reasonable 
        minimum standards of licensure and methods of operation 
        for hospitals and satisfactory assurance that such 
        standards will be applied and enforced with respect to 
        the hospital.
          (B) The Secretary shall establish the means for 
        determining need and feasibility for the hospital. If 
        the State has an official procedure for determining 
        need for hospitals, the Secretary shall also require 
        that such procedure be followed before the application 
        for insurance is submitted, and the application shall 
        document that need has also been established under that 
        procedure.

           *       *       *       *       *       *       *

  (i) Loss Mitigation Demonstration Program.--
          (1) In general.--Only to the extent or in such 
        amounts as are provided in advance in appropriation 
        Acts to carry out this subsection, the Secretary may 
        carry out a program to demonstrate the effectiveness of 
        taking loss mitigation actions for hospitals with 
        mortgages that are insured under this section to reduce 
        the risk of, prevent, or cure defaults of financially 
        troubled hospitals, to reduce claim or holding costs of 
        loans that are assigned to the Secretary, or to 
        maximize the recovery on loan assets. The demonstration 
        program may be carried out only with respect to not 
        more than 3 such hospitals.
          (2) Loss mitigation actions.--Loss mitigation actions 
        taken under the demonstration program under this 
        subsection may include the following actions:
                  (A) Partial payment of a claim under the 
                contract for mortgage insurance under this 
                section.
                  (B) Temporary provision of operating 
                assistance funds, including debt service.
                  (C) Provision of financial assistance for 
                maintenance, repair, alterations, or the cost 
                of other capital improvements, including for 
                conversion of excess capacity of hospitals to 
                facilities providing health care and supportive 
                housing for elderly persons and families, 
                including assisted living facilities, nursing 
                homes, and supportive housing for the elderly.
          (3) Requirements for assistance.--A hospital may be 
        provided financial assistance under the demonstration 
        program only if--
                  (A) the hospital has secured binding 
                commitments for matching funds of not less than 
                10 percent of the cost of such assistance; and
                  (B) the hospital has met the requirements of 
                any applicable State certificate of need or 
                other licensing requirement.
          (4) Limitations on assistance.--Any payments or 
        financial assistance or relief under this subsection 
        shall be made at the sole discretion of the Secretary 
        and on terms acceptable to the Secretary except that--
                  (A) the total amount of payments and 
                financial assistance and relief shall not 
                exceed 30 percent of the outstanding project 
                indebtedness insured by the Secretary; and
                  (B) the mortgagor shall agree to repay such 
                total amount to the Secretary upon terms and 
                conditions acceptable to the Secretary.
          (5) Final decision.--A decision by the Secretary to 
        exercise or forgo exercising any authority under this 
        subsection shall not be subject to judicial review.
          (6) Applications.--The Secretary shall provide for 
        hospitals to submit applications for participation in 
        the demonstration program under this subsection, which 
        shall include information sufficient to determine 
        compliance with the requirements under paragraph (3).
          (7) Termination.--The demonstration program under 
        this subsection shall terminate on December 31, 2004.

           *       *       *       *       *       *       *


                GRADUATED PAYMENT AND INDEXED MORTGAGES

    Sec. 245. (a) The Secretary may insure under any provision 
of this title mortgages and loans with provisions of varying 
rates of amortization corresponding to anticipated variations 
in family income or with monthly payments and outstanding 
balances adjusted by a percentage change in a selected price 
index to the extent he determines such mortgages or loans (1) 
have promise for expanding housing opportunities or meet 
special needs, (2) can be developed to include any safeguards 
for mortgagors or purchasers that may be necessary to offset 
special risks of such mortgages, and (3) have a potential for 
acceptance in the private market. Notwithstanding any other 
provision of this title, except as provided in subsections (b) 
and (c) of this section, the principal obligation (including 
all interest to be deferred and added to principal) of a 
mortgage insured pursuant to this section may not exceed 97 per 
centum of the appraised value of the property covered by the 
mortgage as of the date the mortgage is accepted for 
insurance[, or if the mortgagor is a veteran and the mortgage 
is to be insured in accordance with the provisions of section 
203 of this title, such higher percentage of appraised value as 
is provided for purposes of determining the maximum mortgage 
amount eligible for insurance under section 203(b)(2) in the 
case of veterans].
    (b) Notwithstanding the provisions of subsection (a), the 
Secretary may insure under any provision of this title a 
mortgage or loan which meets the requirements of the first 
sentence of subsection (a) and which has provisions for varying 
rates of amortization if the Secretary determines--
          (1) * * *

           *       *       *       *       *       *       *

          (3) the principal obligation of the mortgage or loan 
        thereafter (including all interest to be deferred and 
        added to principal) will not at any time be scheduled 
        to exceed 97 per centum[, or, if the mortgagor is a 
        veteran, such higher percentage as is provided under 
        section 203(b)(2) for veterans,] of the projected value 
        of the property; and

           *       *       *       *       *       *       *


                ADJUSTABLE RATE SINGLE FAMILY MORTGAGES

    Sec. 251. (a) * * *

           *       *       *       *       *       *       *

  (d)(1) The Secretary may insure under this subsection a 
mortgage that meets the requirements of subsection (a), except 
that the effective rate of interest--
          (A) * * *

           *       *       *       *       *       *       *

          (C) in the case of the initial interest rate 
        adjustment, is subject to the 1 percent limitation only 
        if the interest rate remained fixed for [five or fewer 
        years] three or fewer years.

           *       *       *       *       *       *       *


  INSURANCE OF HOME EQUITY CONVERSION MORTGAGES FOR ELDERLY HOMEOWNERS

    Sec. 255. (a) * * *

           *       *       *       *       *       *       *

  (g) Limitation on Insurance Authority.--The aggregate number 
of mortgages insured under this section may not exceed 150,000. 
In no case may the benefits of insurance under this section 
exceed the maximum dollar amount established under section 
203(b)(2) for [1-family residences in the area in which the 
dwelling subject to the mortgage under this section is located] 
a 1-family residence.

           *       *       *       *       *       *       *

                              ----------                              


      SECTION 912 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1970

                            EQUITY SKIMMING

    Sec. 912. Whoever, with intent to defraud, willfully 
engages in a pattern or practice of--
          (1) purchasing one- to four-family dwellings 
        (including condominiums and cooperatives) which are 
        subject to a loan in default at time of purchase or in 
        default within [one year] 18 months subsequent to the 
        purchase and the loan is secured by a mortgage or deed 
        of trust insured or held by the Secretary of Housing 
        and Urban Development or guaranteed by the Department 
        of Veterans Affairs, or the loan is made by the 
        Department of Veterans Affairs,

           *       *       *       *       *       *       *

                              ----------                              


                SECTION 202b OF THE HOUSING ACT OF 1959

SEC. 202B. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING 
                    FACILITIES.

  (a) * * *

           *       *       *       *       *       *       *

  [(h) Authorization of Appropriations.--There is authorized to 
be appropriated for providing grants under this section such 
sums as may be necessary for fiscal year 2000.]
  (h) Authorization of Appropriations.--There is authorized to 
be appropriated for grants for capital repair activities under 
subsection (a)(1) and for grants for conversion activities 
under subsection (a)(2) such sums as may be necessary for each 
of fiscal years 2003 and 2004.
                              ----------                              


             HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992

           *       *       *       *       *       *       *


 TITLE VI--HOUSING FOR ELDERLY PERSONS AND PERSONS WITH DISABILITIES

           *       *       *       *       *       *       *


                    Subtitle F--General Provisions

           *       *       *       *       *       *       *


SEC. 683. DEFINITIONS.

  For purposes of this title:
          (1) * * *
          (2) Federally assisted housing.--The terms 
        ``federally assisted housing'' and ``project'' mean--
                  (A) * * *

           *       *       *       *       *       *       *

                  (F) housing insured, assisted, or held by the 
                Secretary or a State or State agency under 
                section 236 of the National Housing Act; [and]
                  (G) housing constructed or substantially 
                rehabilitated pursuant to assistance provided 
                under section 8(b)(2) of the United States 
                Housing Act of 1937, as in effect before 
                October 1, 1983, that is assisted under a 
                contract for assistance under such section[.]; 
                and
                  (H) housing that is assisted under section 
                811 of the Cranston-Gonzalez National 
                Affordable Housing Act (42 U.S.C. 8013).

           *       *       *       *       *       *       *


            TITLE IX--REGULATORY AND MISCELLANEOUS PROGRAMS

                        Subtitle A--Miscellaneous

           *       *       *       *       *       *       *


SEC. 911. SUBSIDY LAYERING REVIEW.

  (a) Certification of Subsidy Layering Compliance.--The 
requirements of section 102(d) of the Department of Housing and 
Urban Development Reform Act of 1989 [may] shall be satisfied 
in connection with a project receiving assistance under a 
program that is within the jurisdiction of the Department of 
Housing and Urban Development and under section 42 of the 
Internal Revenue Code of 1986 by a certification by a housing 
credit agency to the Secretary[, submitted in accordance with 
guidelines established by the Secretary, that the combination 
of assistance within the jurisdiction of the Secretary and 
other government assistance provided in connection with a 
property for which assistance is to be provided within the 
jurisdiction of the Department of Housing and Urban Development 
and under section 42 of the Internal Revenue Code of 1986 shall 
not be any greater than is necessary to provide affordable 
housing.] that it has made the determination required by 
subsection (m)(2)(A) of such section 42 upon the first occasion 
that such determination was required and that it will make such 
determination upon such additional occasions as are required by 
law or regulation.
  [(b) In Particular.--The guidelines established pursuant to 
subsection (a) shall--
          [(1) require that the amount of equity capital 
        contributed by investors to a project partnership is 
        not less than the amount generally contributed by 
        investors in current market conditions, as determined 
        by the housing credit agency; and
          [(2) require that project costs, including developer 
        fees, are within a reasonable range, taking into 
        account project size, project characteristics, project 
        location and project risk factors, as determined by the 
        housing credit agency.
  [(c) Revocation by Secretary.--If the Secretary determines 
that a housing credit agency has failed to comply with the 
guidelines established under subsection (a), the Secretary--
          [(1) may inform the housing credit agency that the 
        agency may no longer submit certification of subsidy 
        layering compliance under this section; and
          [(2) shall carry out section 102(d) of the Department 
        of Housing and Urban Development Reform Act of 1989 
        relating to affected projects allocated a low-income 
        housing tax credit pursuant to section 42 of the 
        Internal Revenue Code of 1986.]
  [(d)] (b) Applicability.--Section 102(d) of the Department of 
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 
3545(d)) shall apply only to projects for which an application 
for assistance or insurance was filed after the date of 
enactment of the Housing and Urban Development Reform Act.

           *       *       *       *       *       *       *

                              ----------                              


                   UNITED STATES HOUSING ACT OF 1937

           *       *       *       *       *       *       *


             TITLE I--GENERAL PROGRAM OF ASSISTED HOUSING

           *       *       *       *       *       *       *


SEC. 5A. PUBLIC HOUSING AGENCY PLANS.

  (a) * * *
  (b) Annual Plan.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Suspension of filing requirement for certain 
        small phas.--
                  (A) In general.--Notwithstanding paragraph 
                (1) or any other provision of this Act--
                          (i) the requirement under paragraph 
                        (1) shall not apply to any qualified 
                        small public housing agency for fiscal 
                        years 2003, 2004, or 2005; and
                          (ii) any reference in this section or 
                        any other provision of law to a 
                        ``public housing agency'' shall not be 
                        considered to refer to any qualified 
                        small public housing agency for such 
                        fiscal years, to the extent such 
                        reference applies to the requirement to 
                        submit a public housing agency plan 
                        under subsection (b).
                  (B) Definition.--For purposes of this 
                paragraph, the term ``qualified small public 
                housing agency'' means a public housing agency 
                that meets all of the following requirements:
                          (i) The sum of (I) the number of 
                        public housing dwelling units 
                        administered by the agency, and (II) 
                        the number of vouchers under section 
                        8(o) of the United States Housing Act 
                        of 1937 (42 U.S.C. 1437f(o)) 
                        administered by the agency, is 100 or 
                        fewer.
                          (ii) The agency is not designated 
                        pursuant to section 6(j)(2) as a 
                        troubled public housing agency.
                          (iii) The agency provides assurances 
                        satisfactory to the Secretary that, 
                        during fiscal years 2003, 2004, and 
                        2005, notwithstanding the 
                        inapplicability of the requirements 
                        under section 5A relating to resident 
                        advisory boards and public hearings and 
                        notice, residents of public housing 
                        administered by the agency will have an 
                        adequate and comparable opportunity for 
                        participation and notice regarding 
                        establishment of the goals, objectives, 
                        and policies of the public housing 
                        agency.

           *       *       *       *       *       *       *


                  CONTRACT PROVISIONS AND REQUIREMENTS

  Sec. 6. (a) * * *

           *       *       *       *       *       *       *

  (l) Each public housing agency shall utilize leases which--
          (1) * * *

           *       *       *       *       *       *       *

          (6) provide that any criminal activity that threatens 
        the health, safety, or right to peaceful enjoyment of 
        the premises by other tenants or any drug-related 
        criminal activity on or off such premises, engaged in 
        by a public housing tenant, any member of the tenant's 
        household, or any guest or other person under the 
        tenant's control, shall be cause for termination of 
        tenancy; except that such criminal activity, engaged in 
        by a member of a tenant's household or any guest or 
        other person under the tenant's control, shall not be 
        cause for termination of tenancy of the tenant if the 
        tenant or immediate member of the tenant's family is a 
        victim of domestic violence or dating violence and, as 
        a result, could not control or prevent the criminal 
        activity relating to domestic violence or dating 
        violence; and except that nothing in this paragraph may 
        be construed to limit the authority of a public housing 
        agency to evict individuals who engage in criminal acts 
        of physical violence against family members or others, 
        and in all cases, a public housing agency shall 
        consider the safety, security, and continued 
        maintenance of victims of domestic violence to be of 
        paramount importance;

           *       *       *       *       *       *       *


                    LOWER INCOME HOUSING ASSISTANCE

  Sec. 8. (a) * * *

           *       *       *       *       *       *       *

  (d)(1) Contracts to make assistance payments entered into by 
a public housing agency with an owner of existing housing units 
shall provide (with respect to any unit) that--
          (A) * * *
          (B)(i) * * *

           *       *       *       *       *       *       *

          (iii) during the term of the lease, any criminal 
        activity that threatens the health, safety, or right to 
        peaceful enjoyment of the premises by other tenants, 
        any criminal activity that threatens the health, 
        safety, or right to peaceful enjoyment of their 
        residences by persons residing in the immediate 
        vicinity of the premises, or any drug-related criminal 
        activity on or near such premises, engaged in by a 
        tenant of any unit, any member of the tenant's 
        household, or any guest or other person under the 
        tenant's control, shall be cause for termination of 
        tenancy; except that such criminal activity, engaged in 
        by a member of a tenant's household or any guest or 
        other person under the tenant's control, shall not be 
        cause for termination of tenancy of the tenant if the 
        tenant or immediate member of the tenant's family is a 
        victim of domestic violence or dating violence and, as 
        a result, could not control or prevent the criminal 
        activity relating to domestic violence or dating 
        violence; and except that nothing in this clause may be 
        construed to limit the authority of a public housing 
        agency to evict individuals who engage in criminal acts 
        of physical violence against family members or others, 
        and in all cases, a public housing agency shall 
        consider the safety, security, and continued 
        maintenance of victims of domestic violence to be of 
        paramount importance;

           *       *       *       *       *       *       *

  (o) Voucher Program.--
          (1) Authority.--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(D) Approval.--The]
                  (D) Exception payment standards.--
                          (i) Approval.--The Secretary may 
                        require a public housing agency to 
                        submit the payment standard of the 
                        public housing agency to the Secretary 
                        for approval, if the payment standard 
                        is less than 90 percent of the fair 
                        market rental or exceeds 110 percent of 
                        the fair market rental.
                          (ii) Increased payment standard.--A 
                        public housing agency may establish a 
                        payment standard for the same size 
                        dwelling unit in a market area or 
                        portion of a market area between 110 
                        and 120 percent of the fair market 
                        rent, if the payment standard for the 
                        market area or portion of a market area 
                        has been set at 110 percent or above 
                        for the 6 months prior to the 
                        establishment of the new payment 
                        standard and the public housing agency 
                        determines that it has--
                                  (I) a voucher success rate 
                                (the proportion of families 
                                that are issued a voucher that 
                                succeed in leasing a unit 
                                within the timeframe provided 
                                by the public housing agency to 
                                search for housing) of not more 
                                than 80 percent or has provided 
                                an extended search time of not 
                                less than 90 days to a 
                                significant number of voucher 
                                recipients; or
                                  (II) problems with 
                                concentration of the voucher 
                                holders in high poverty areas.
                          (iii) Disability accommodation.--A 
                        public housing agency may establish a 
                        payment standard of not more than 120 
                        percent of the fair market rent where 
                        necessary as a reasonable accommodation 
                        for a person with a disability, without 
                        approval of the Secretary. A public 
                        housing agency may seek approval of the 
                        Secretary to use a payment standard 
                        greater than 120 percent of the fair 
                        market rent as a reasonable 
                        accommodation for a person with a 
                        disability.
                          (iv) Secretary approval.--A public 
                        housing agency may establish a payment 
                        standard in accordance with clause (ii) 
                        without approval of the Secretary, if 
                        the public housing agency includes in 
                        its annual plan that is submitted to 
                        the Secretary pursuant to section 
                        5A(b)--
                                  (I) the reasons for the 
                                increase in the payment 
                                standard;
                                  (II) a description of how and 
                                why the public housing agency 
                                has determined that it meets 
                                the requirements of clause 
                                (ii); and
                                  (III) a description of other 
                                steps the public housing agency 
                                is taking, in addition to 
                                increasing the payment 
                                standard, to address the 
                                problems of voucher 
                                utilization, voucher success 
                                rates (the proportion of 
                                families that are issued a 
                                voucher that succeed in leasing 
                                a unit within the timeframe 
                                provided by the public housing 
                                agency to search for housing), 
                                and concentration of voucher 
                                holders.
                          (v) Applicability.--Clauses (ii) 
                        through (iv) shall apply with respect 
                        only to amounts made available for 
                        rental assistance under this subsection 
                        for fiscal year 2004 and fiscal years 
                        thereafter.

           *       *       *       *       *       *       *

          (6) Selection of families and disapproval of 
        owners.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) Residency in inappropriately sized 
                units.--
                          (i) In general.--If a public housing 
                        agency determines that a family 
                        assisted under this subsection is 
                        residing in a dwelling unit that, 
                        because of a reduction in family size 
                        after such assistance was initially 
                        provided for such family, has more 
                        bedrooms than is appropriate for a 
                        family of such size, the agency may not 
                        terminate the assistance for the family 
                        or require the family to move to 
                        another dwelling unit unless--
                                  (I) the agency provides the 
                                family with a dwelling unit 
                                that is located in the same 
                                building or project as the 
                                inappropriately sized dwelling 
                                unit and is available for 
                                occupancy; or
                                  (II) in the case of a family 
                                residing in a dwelling unit in 
                                a building or project that does 
                                not contain any available 
                                dwelling unit having a number 
                                of bedrooms that is appropriate 
                                for size of such family, the 
                                agency provides the family with 
                                a dwelling unit that is located 
                                within the same neighborhood as 
                                the building containing the 
                                inappropriately sized dwelling 
                                unit.
                          (ii) Determination of neighborhood.--
                        For purposes of clause (i)(II), the 
                        term ``neighborhood'' means the 
                        immediate geographic area in which a 
                        building is located, which--
                                  (I) is characterized by all 
                                locations within the area 
                                having a similar proximity to 
                                major roadways, mass transit 
                                facilities, and other means of 
                                transportation, schools, child 
                                care facilities, workplace 
                                centers, and grocery stores and 
                                other retail and commercial 
                                facilities; and
                                  (II) shall be determined by 
                                the public housing agency 
                                involved, in consultation with 
                                the appropriate resident 
                                advisory board established 
                                pursuant to section 5A(e).
                          (iii) Treatment of students.--For 
                        purposes of clause (i), the absence of 
                        a child or adult from a dwelling 
                        because of temporary residence in 
                        another location for the purpose of 
                        attending school on a full- or part-
                        time basis shall not be considered in 
                        determining family size.

           *       *       *       *       *       *       *

          (8) Inspection of units by pha's.--
                  [(A) In general.--Except as provided in 
                paragraph (11),]
                  (A) General rule.--
                          (i) In general.--Except as provided 
                        in clause (ii) and paragraph (11), for 
                        each dwelling unit for which a housing 
                        assistance payment contract is 
                        established under this subsection, the 
                        public housing agency shall inspect the 
                        unit before any assistance payment is 
                        made to determine whether the dwelling 
                        unit meets the housing quality 
                        standards under subparagraph (B).
                          (ii) Exception.--A public housing 
                        agency may commence payments to an 
                        owner, if the public housing agency--
                                  (I) has conducted an 
                                inspection of the building, 
                                which includes an inspection of 
                                a reasonable number of units in 
                                the 6 months prior to the date 
                                on which payment is made to the 
                                owner, and that inspection and 
                                any subsequent unit inspections 
                                have not turned up major 
                                deficiencies;
                                  (II) conducts an inspection 
                                of the unit for which the 
                                payment is being made not later 
                                than 30 days after the date for 
                                which payment is made to the 
                                owner; and
                                  (III) has an agreement with 
                                the owner to correct any 
                                deficiencies and make any 
                                repairs in the unit not later 
                                than 30 days after the date on 
                                which the inspection was made 
                                under subclause (II).

           *       *       *       *       *       *       *

                  [(D) Annual inspections.--Each]
                  (D) Annual inspections.--
                          (i) In general.--Except as provided 
                        in clause (ii), each public housing 
                        agency providing assistance under this 
                        subsection (or other entity, as 
                        provided in paragraph (11)) shall make 
                        an annual inspection of each assisted 
                        dwelling unit during the term of the 
                        housing assistance payments contract 
                        for the unit to determine whether the 
                        unit is maintained in accordance with 
                        the requirements under subparagraph 
                        (A). The agency (or other entity) shall 
                        retain the records of the inspection 
                        for a reasonable time and shall make 
                        the records available upon request to 
                        the Secretary, the Inspector General 
                        for the Department of Housing and Urban 
                        Development, and any auditor conducting 
                        an audit under section 5(h).
                          (ii) Exception.--If a public housing 
                        agency has a large jurisdiction and is 
                        conducting inspections on a 
                        geographical basis, the public housing 
                        agency may comply with the annual 
                        inspection requirement by inspecting 
                        the unit within 9 to 15 months of the 
                        previous inspection.

           *       *       *       *       *       *       *

                  (F) Escrow of tenant rent in cases of owner 
                failure to maintain unit.--Each housing 
                assistance payment contract under this 
                subsection shall provide as follows:
                          (i) Requirement.--In any case in 
                        which a public housing agency suspends 
                        assistance payments under this 
                        subsection with respect to a dwelling 
                        unit because of a failure on the part 
                        of the owner of the unit to maintain 
                        the unit in compliance with the housing 
                        quality standards established pursuant 
                        to this paragraph, the agency shall--
                                  (I) require the tenant to 
                                suspend payment to the owner of 
                                the tenant's monthly 
                                contribution toward rent and 
                                require the tenant to pay such 
                                amount into an escrow account 
                                established by the agency; and
                                  (II) notify the tenant and 
                                the owner of the failure to 
                                maintain the unit in compliance 
                                with such housing quality 
                                standards and of the actions 
                                required under this 
                                subparagraph.
                          (ii) Correction of noncompliance.--If 
                        the owner corrects the noncompliance 
                        within the period of time established 
                        by the agency for such purpose, the 
                        public housing agency shall release to 
                        the owner any tenant payments toward 
                        rent deposited in the escrow account.
                          (iii) Failure to correct 
                        noncompliance.--If the owner fails to 
                        correct the noncompliance within the 
                        period of time established by the 
                        agency and the tenant moves from the 
                        dwelling unit because of such 
                        noncompliance, the public housing 
                        agency shall make the any tenant 
                        payments toward rent that are deposited 
                        in the escrow account available on 
                        behalf of the tenant upon such move for 
                        costs of the move and for rental of a 
                        new dwelling unit.

           *       *       *       *       *       *       *

          (13) PHA project-based assistance.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Consistency with pha plan and other 
                goals.--A public housing agency may approve a 
                housing assistance payment contract pursuant to 
                this paragraph only if the contract is 
                consistent with--
                          (i) * * *
                          (ii) the goal of deconcentrating 
                        poverty and expanding housing and 
                        economic opportunities, revitalizing a 
                        low-income community, or preventing the 
                        displacement of extremely low-income 
                        families.
                  (D) Income mixing requirement.--
                          (i) * * *
                          (ii) Exceptions.--The limitation 
                        under clause (i) shall not [apply in 
                        the case of assistance under a contract 
                        for housing consisting of single family 
                        properties or for dwelling units that 
                        are specifically made available for 
                        households comprised of elderly 
                        families, disabled families, and 
                        families receiving supportive 
                        services.] apply--
                                  (I) in the case of assistance 
                                under a contract for housing 
                                consisting of single family 
                                properties (buildings with 1 to 
                                4 units);
                                  (II) for dwelling units that 
                                are specifically made available 
                                for households comprised of 
                                elderly families or disabled 
                                families; or
                                  (III) outside of a qualified 
                                census tract, for buildings 
                                with 5 to 25 units or with 
                                dwelling units that are 
                                specifically made available for 
                                families receiving supportive 
                                services.
                        For purposes of this clause, the term 
                        ``qualified census tract'' has the same 
                        meaning given that term in section 
                        42(d) of the Internal Revenue Code of 
                        1986 (26 U.S.C. 42(d)). The Secretary 
                        may waive the limitations of this 
                        clause, consistent with the obligation 
                        to affirmatively further fair housing 
                        practices.

           *       *       *       *       *       *       *

                  (F) Contract term.--A housing assistance 
                payment contract pursuant to this paragraph 
                between a public housing agency and the owner 
                of a structure may have a term of up to [10] 15 
                years, subject to the availability of 
                sufficient appropriated funds for the purpose 
                of renewing expiring contracts for assistance 
                payments, as provided in appropriations Acts 
                and in the agency's annual contributions 
                contract with the Secretary, and to annual 
                compliance with the inspection requirements 
                under paragraph (8), except that the agency 
                shall not be required to make annual 
                inspections of each assisted unit in the 
                development. The contract may specify 
                additional conditions for its continuation. If 
                the units covered by the contract are owned by 
                the agency, the term of the contract shall be 
                agreed upon by the agency and the unit of 
                general local government or other entity 
                approved by the Secretary in the manner 
                provided under paragraph (11).

           *       *       *       *       *       *       *

                  (J) Tenant selection.--A public housing 
                agency shall select families to receive 
                project-based assistance pursuant to this 
                paragraph from its waiting list for assistance 
                under this subsection, or from 1 or more 
                separate project-based waiting lists 
                established and maintained in accordance with 
                subparagraph (K). A public housing agency may 
                permit an owner to select families from a 
                waiting list for units assisted under this 
                paragraph maintained by the owner in accordance 
                with subparagraph (L). Regardless of whether a 
                waiting list is maintained under this 
                subparagraph or under subparagraph (K) or (L), 
                families shall initially be selected from the 
                public housing agency's waiting list for 
                assistance under this subsection for at least 
                \1/2\ of the vacant units in a building made 
                available with assistance under this paragraph, 
                unless the units are restricted, under the 
                tenant selection preferences adopted under the 
                annual plan submitted by the public housing 
                agency to the Secretary pursuant to section 
                5A(b), to occupancy by persons who are 
                receiving intensive publicly funded services 
                and who have a disability, as defined in 
                section 3 of this Act or section 422 of the 
                McKinney-Vento Homeless Assistance Act. 
                Eligibility for such project-based assistance 
                shall be subject to the provisions of section 
                16(b) that apply to tenant-based assistance. 
                The agency may establish preferences or 
                criteria for selection for a unit assisted 
                under this paragraph that are consistent with 
                the public housing agency plan for the agency 
                approved under section 5A. Any family that 
                rejects an offer of project-based assistance 
                under this paragraph or that is rejected for 
                admission to a structure by the owner or 
                manager of a structure assisted under this 
                paragraph shall retain its place on the waiting 
                list as if the offer had not been made. The 
                owner or manager of a structure assisted under 
                this paragraph shall not admit any family to a 
                dwelling unit assisted under a contract 
                pursuant to this paragraph other than a family 
                referred by the public housing agency from its 
                waiting list, unless the owner maintains a 
                waiting list under subparagraph (L). Subject to 
                its waiting list policies and selection 
                preferences, a public housing agency may place 
                on its waiting list a family referred by the 
                owner or manager of a structure [and may 
                maintain a separate waiting list for assistance 
                under this paragraph, but only if all families 
                on the agency's waiting list for assistance 
                under this subsection are permitted to place 
                their names on the separate list].
                  (K) Public housing agency waiting list.--
                          (i) In general.--A public housing 
                        agency may select families for 
                        assistance--
                                  (I) under subparagraph (J);
                                  (II) under this subparagraph 
                                for each property that receives 
                                assistance under this 
                                paragraph; or
                                  (III) under this subparagraph 
                                for similar properties that 
                                receive assistance under this 
                                paragraph.
                          (ii) Requirements.--A public housing 
                        agency that maintains a separate 
                        waiting list under this subparagraph--
                                  (I) shall provide notice of 
                                the opening of the waiting list 
                                in the same manner required by 
                                the Secretary for the provision 
                                of notice of the opening of the 
                                waiting list for tenant-based 
                                assistance under this 
                                subsection, except that this 
                                subclause shall not apply to 
                                units assisted under this 
                                paragraph that are restricted, 
                                under tenant selection 
                                preferences adopted under the 
                                annual plan submitted by the 
                                public housing agency to the 
                                Secretary pursuant to section 
                                5A(b) to occupancy by persons 
                                who are receiving intensive 
                                publicly funded services and 
                                who have a disability, as 
                                defined in section 3 of this 
                                Act or section 422 of the 
                                McKinney-Vento Homeless 
                                Assistance Act;
                                  (II) shall give preference to 
                                families on its tenant-based 
                                waiting list, if families are 
                                applying at the equivalent time 
                                and date with otherwise 
                                equivalent preference under the 
                                annual plan submitted by the 
                                public housing agency to the 
                                Secretary pursuant to section 
                                5A(b); and
                                  (III) shall notify families 
                                that are applying for tenant-
                                based assistance of the 
                                opportunity to be listed on the 
                                waiting list maintained under 
                                this subparagraph.
                  (L) Owner waiting list.--
                          (i) In general.--A public housing 
                        agency may allow an owner of a 
                        structure with a contract for 
                        assistance under this paragraph to 
                        maintain a waiting list for units 
                        assisted under this paragraph.
                          (ii) Agency plan.--The policy for a 
                        waiting list maintained under this 
                        subparagraph and any applicable 
                        preferences or selection criteria shall 
                        be included in the annual plan 
                        submitted by the public housing agency 
                        to the Secretary in accordance with 
                        section 5A(b).
                          (iii) Agency responsibilities.--If a 
                        waiting list is maintained under this 
                        subparagraph, the public housing agency 
                        shall--
                                  (I) provide notice of the 
                                opening of the waiting list in 
                                the same manner and to the same 
                                extent as is required of the 
                                agency under subparagraph 
                                (K)(ii)(I);
                                  (II) notify families that 
                                apply for tenant-based 
                                assistance of the opportunity 
                                to be listed on that waiting 
                                list;
                                  (III) establish a mechanism 
                                to transmit applications 
                                submitted at its office to the 
                                owner for placement on that 
                                waiting list; and
                                  (IV) monitor, at reasonable 
                                intervals, the compliance by 
                                the owner with laws applicable 
                                to tenant selection and waiting 
                                lists, including civil rights 
                                laws, regulations, and 
                                certifications.
                          (iv) Owner responsibilities.--If a 
                        waiting list is maintained under this 
                        subparagraph, the owner of the 
                        structure shall--
                                  (I) provide notice of the 
                                opening of the waiting list 
                                (unless the public housing 
                                agency agrees to provide such 
                                notice for the owner, or notice 
                                is not required pursuant to 
                                clause (iii)(I)) and provide 
                                preference to families on the 
                                tenant-based waiting list of 
                                the public housing agency in 
                                the same manner as is required 
                                under subparagraph (K);
                                  (II) place on its waiting 
                                list, families that apply at an 
                                office of the agency that 
                                accepts applications for 
                                tenant-based assistance;
                                  (III) cooperate with requests 
                                of the public housing agency 
                                for information concerning the 
                                waiting list and the tenant 
                                selection decisions of the 
                                owner; and
                                  (IV) submit written tenant 
                                selection policies and criteria 
                                to the public housing agency 
                                for approval, and make those 
                                policies and criteria available 
                                to the public.
                          (v) Right to informal review.--A 
                        family that is denied a unit by an 
                        owner that maintains a waiting list 
                        under this subparagraph shall have the 
                        same rights to informal review by a 
                        public housing agency as a family that 
                        is denied tenant-based assistance by a 
                        public housing agency, and such review 
                        shall be performed expeditiously so as 
                        not to impede the timely rental of 
                        units. The public housing agency's 
                        review at the informal hearing shall be 
                        limited to determining if the owner, if 
                        denying admission, followed applicable 
                        law and the procedures and criteria 
                        adopted by the owner and approved by 
                        the public housing agency for 
                        determining the eligibility of 
                        applicants for admission.
                          (vi) Applicability.--Except as 
                        provided in this subparagraph, a 
                        waiting list maintained by an owner 
                        shall be considered to be a waiting 
                        list maintained by a public housing 
                        agency for assistance under this 
                        subsection.
                          (vii) Limitation of liability.--No 
                        right of action shall exist against a 
                        public housing agency with respect to 
                        an owner's violation of any applicable 
                        law, unless the agency has actual 
                        knowledge that such violation has 
                        occurred or is occurring and--
                                  (I) the agency has failed to 
                                take action to cause the owner 
                                to cease such violation; or
                                  (II) the public housing 
                                agency has failed to comply 
                                with its responsibilities under 
                                clause (iii).
                  [(K)] (M) Vacated units.--Notwithstanding 
                paragraph (9), a housing assistance payment 
                contract pursuant to this paragraph may provide 
                as follows:
                          (i) * * *

           *       *       *       *       *       *       *

                  (N) Fair housing, subsidy layering, and 
                competitive selection requirements.--A public 
                housing agency may attach assistance under this 
                paragraph to units without specific approval by 
                the Secretary of compliance with fair housing, 
                subsidy layering, or competitive selection 
                requirements, if--
                          (i) for fair housing compliance, the 
                        units proposed to receive assistance 
                        under this paragraph receive a grant or 
                        a loan under a Federal program pursuant 
                        to which the Secretary, or a designee 
                        of the Secretary, has determined in 
                        accordance with regulations that the 
                        site location would meet applicable 
                        civil rights and fair housing 
                        requirements;
                          (ii) for compliance with subsidy 
                        layering requirements, consistent with 
                        the written policy of the Secretary, 
                        the public housing agency or another 
                        public agency has determined that 
                        addition of subsidies under this 
                        paragraph would not duplicate other 
                        public funding; or
                          (iii) for compliance with competitive 
                        selection requirements, an 
                        advertisement for capital funds 
                        announced the potential for 
                        availability of assistance under this 
                        paragraph.
                  (O) Use of assistance in conjunction with 
                public housing capital funds.--
                          (i) Capital fund and hope vi.--
                        Notwithstanding any provision to the 
                        contrary in this Act, a public housing 
                        agency may attach assistance under this 
                        paragraph to a structure or unit that 
                        receives assistance allocated to the 
                        public housing agency under the Capital 
                        Fund, established by section 9(d), or 
                        under section 24.
                          (ii) Operating fund.--A unit that 
                        receives assistance under this 
                        paragraph shall not be eligible for 
                        assistance under the Operating Fund 
                        established by section 9(e).

           *       *       *       *       *       *       *

          (20) Flexibility to assist hard-to-house families.--
        In any program year, a public housing agency that is 
        not designated as troubled pursuant to the section 8 
        management assessment program, or under such other 
        program as may be used by the Secretary to evaluate 
        performance of public housing agencies in administering 
        rental assistance under this section, may use up to 2 
        percent of any amounts allocated to the agency for such 
        year for purposes that directly support the agency's 
        housing choice voucher program, including housing 
        counseling, downpayment assistance under subsection 
        (y), rental security deposits for families receiving 
        voucher assistance, and other activities that directly 
        assist eligible families in gaining and maintaining 
        occupancy in suitable dwelling units.

           *       *       *       *       *       *       *

  (q) Administrative Fees.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Performance incentive.--For fiscal year 2003 and 
        fiscal years thereafter, the Secretary may pay an 
        additional fee to any public housing agency that 
        succeeds in achieving high or substantially improved 
        performance on specified program requirements or 
        program goals, as established under the management 
        assessment program for the rental assistance program 
        under this section, or any successor assessment program 
        for such assistance, or by regulation issued by the 
        Secretary after notice and opportunity for public 
        comment pursuant to the provisions of section 553 of 
        title 5, United States Code (notwithstanding 
        subsections (a)(2), (b)(B), and (d)(3) of such 
        section). The Secretary shall establish limitations on 
        the total amount of any such additional fees paid to 
        agencies for a fiscal year and on the amount of any 
        such fee paid to any single agency for a fiscal year.
          [(4)] (5) Applicability.--This subsection shall apply 
        to fiscal year 1999 and fiscal years thereafter.

           *       *       *       *       *       *       *

  (t) Enhanced Vouchers.--
          (1) In general.--[Enhanced] Except as provided in 
        paragraph (2), enhanced voucher assistance under this 
        subsection for a family shall be voucher assistance 
        under subsection (o), except that under such enhanced 
        voucher assistance--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) subparagraph (B) of this paragraph shall 
                not apply and the payment standard for the 
                dwelling unit occupied by the family shall be 
                determined in accordance with subsection (o) 
                if--
                          (i) * * *
                          (ii) the voucher is made available 
                        for use by any family other than the 
                        original family on behalf of whom the 
                        voucher was provided; [and]
                  (D) if the income of the assisted family 
                declines to a significant extent, the 
                percentage of income paid by the family for 
                rent shall not exceed the greater of 30 percent 
                or the percentage of income paid at the time of 
                the eligibility event for the project[.]; and
                  (E) a family's eligibility to receive such 
                assistance shall be determined pursuant to the 
                provisions of law authorizing or requiring the 
                provision of enhanced voucher assistance 
                pursuant to the eligibility event that affected 
                such family and a family may not be required, 
                as a condition of receiving such assistance, to 
                qualify under the selection standards of a 
                public housing agency for voucher assistance 
                under this section.
          (2) Enhanced vouchers for residents of units not 
        available for continued rental.--
                  (A) Voucher assistance.--In the case of a 
                family who is eligible for enhanced voucher 
                assistance under this subsection and who, on 
                the date of the eligibility event resulting in 
                such family's eligibility, is residing in a 
                dwelling unit that is unavailable for continued 
                rental as provided in subparagraph (B) as a 
                result of such event, enhanced voucher 
                assistance under this subsection for the family 
                shall be voucher assistance under subsection 
                (o), except that under such enhanced voucher 
                assistance--
                          (i) subject only to clause (iv), the 
                        assisted family shall pay as rent no 
                        less than the amount the family was 
                        paying on the date of the eligibility 
                        event for the project;
                          (ii) the assisted family may elect to 
                        reside in any other dwelling unit that 
                        is located within the zip code in which 
                        is located the project in which the 
                        family was residing on the date of the 
                        eligibility event for the project or 
                        within a zip code contiguous to such 
                        zip code, and if, during any period 
                        after such election that the family 
                        continues to reside, the rent for the 
                        dwelling unit of the family exceeds the 
                        applicable payment standard established 
                        pursuant to subsection (o) for the 
                        unit, the amount of rental assistance 
                        provided on behalf of the family shall 
                        be determined using a payment standard 
                        that is equal to the rent for the 
                        dwelling unit (as such rent may be 
                        increased from time-to-time), except 
                        that--
                                  (I) such rent shall be 
                                subject to paragraph (10)(A) of 
                                subsection (o);
                                  (II) such payment standard 
                                shall not exceed the greater of 
                                150 percent of the applicable 
                                fair market rents or 150 
                                percent of the applicable 
                                payment standard for the market 
                                area; and
                                  (III) subject only to the 
                                limit in subclause (II), such 
                                payment standard shall not 
                                adversely affect such assisted 
                                families;
                          (iii) clause (ii) of this 
                        subparagraph shall not apply and the 
                        payment standard for the dwelling unit 
                        occupied by the family shall be 
                        determined in accordance with 
                        subsection (o) if--
                                  (I) the assisted family 
                                moves, at any time, to a 
                                dwelling unit that is not 
                                located within (aa) the zip 
                                code within which is located 
                                the project in which the family 
                                was residing on the date of the 
                                eligibility event for the 
                                project, or (bb) a zip code 
                                contiguous to such zip code; or
                                  (II) the voucher is made 
                                available for use by any family 
                                other than the original family 
                                on behalf of whom the voucher 
                                was provided; and
                          (iv) if the income of the assisted 
                        family declines to a significant 
                        extent, the percentage of income paid 
                        by the family for rent shall not exceed 
                        the greater of 30 percent or the 
                        percentage of income paid at the time 
                        of the eligibility event for the 
                        project.
                  (B) Unavailability due to conversion.--A 
                dwelling unit shall be considered to be 
                unavailable for continued rental as provided in 
                this subparagraph if the eligibility event for 
                the project occurs in connection with a 
                conversion of the unit to condominium, 
                cooperative, or commercial use, after having 
                obtained all necessary land use approvals.
          [(2)] (3) Eligibility event.--For purposes of this 
        subsection, the term ``eligibility event'' means, with 
        respect to a multifamily housing project, the 
        prepayment of the mortgage on such housing project, the 
        voluntary termination of the insurance contract for the 
        mortgage for such housing project (including any such 
        mortgage prepayment during fiscal year 1996 or a fiscal 
        year thereafter or any insurance contract voluntary 
        termination during fiscal year 1996 or a fiscal year 
        thereafter), the termination or expiration of the 
        contract for rental assistance under section 8 of the 
        United States Housing Act of 1937 for such housing 
        project (including any such termination or expiration 
        during fiscal years after fiscal year 1994 prior to the 
        effective date of the Departments of Veterans Affairs 
        and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 2001), or the transaction 
        under which the project is preserved as affordable 
        housing, that, under paragraphs (3) and (4) of section 
        515(c), section 524(d) of the Multifamily Assisted 
        Housing Reform and Affordability Act of 1997 (42 U.S.C. 
        1437f note), section 223(f ) of the Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990 (12 
        U.S.C. 4113(f )), or section 201(p) of the Housing and 
        Community Development Amendments of 1978 (12 U.S.C. 
        1715z-1a(p)), results in tenants in such housing 
        project being eligible for enhanced voucher assistance 
        under this subsection.
          [(3)] (4) Treatment of enhanced vouchers provided 
        under other authority.--
                  (A) * * *

           *       *       *       *       *       *       *

          (5) Right to use.--The owner of a multifamily housing 
        project for which an eligibility event (as such term is 
        defined in paragraph (2)) has occurred may not refuse--
                  (A) to accept enhanced voucher assistance for 
                lease of a dwelling unit in the same project on 
                behalf of a family who was residing in the 
                project upon the occurrence of such eligibility 
                event; or
                  (B) to enter into a housing assistance 
                payments contract for such a unit.
          [(4)] (6) Authorization of appropriations.--There are 
        authorized to be appropriated for each of fiscal years 
        2000, 2001, 2002, 2003, and 2004 such sums as may be 
        necessary for enhanced voucher assistance under this 
        subsection.

           *       *       *       *       *       *       *

  (x) Family Unification.--
          (1) * * *
          (2) Use of funds.--The amounts made available under 
        this subsection shall be used only in connection with 
        tenant-based assistance under [section 8] this section 
        on behalf of (A) any family (i) who is otherwise 
        eligible for such assistance, and (ii) who the public 
        child welfare agency for the jurisdiction has certified 
        is a family for whom the lack of adequate housing is a 
        primary factor in the imminent placement of the 
        family's child or children in out-of-home care or the 
        delayed discharge of a child or children to the family 
        from out-of-home care [and], (B) for a period not to 
        exceed 18 months, otherwise eligible youths who have 
        attained at least 18 years of age and not more than 21 
        years of age and who have left foster care at age 16 or 
        older, or (C) a covered family, who is otherwise 
        eligible for such assistance, for rental of a qualified 
        dwelling unit.
          (3) Allocation.--The amounts made available under 
        this subsection shall be allocated by the Secretary 
        through a national competition among applicants based 
        on demonstrated need for assistance under this 
        subsection. To be considered for assistance, an 
        applicant shall submit to the Secretary a written 
        proposal containing, as appropriate (A) a report from 
        the public child welfare agency serving the 
        jurisdiction of the applicant that describes how a lack 
        of adequate housing in the jurisdiction is resulting in 
        the initial or prolonged separation of children from 
        their families, and how the applicant will coordinate 
        with the public child welfare agency to identify 
        eligible families and provide the families with 
        assistance under this subsection, or (B) a description 
        of the need for assistance under this subsection for 
        covered families.
          (4) Definitions.--For purposes of this subsection:
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Child.--The term ``child'' means an 
                individual who--
                          (i) is not attending school and is 
                        not more than 18 years of age; or
                          (ii) is attending school and is not 
                        more than 19 years of age.
                  (D) Covered family.--The term ``covered 
                family'' means a family that--
                          (i) includes a child; and
                          (ii) has a head of household who is--
                                  (I) a grandparent of the 
                                child who is raising the child; 
                                or
                                  (II) a relative of the child 
                                who is raising the child.
                  (E) Grandparent.--The term ``grandparent'' 
                means, with respect to a child, an individual 
                who is a grandparent or stepgrandparent of the 
                child by blood or marriage, regardless of the 
                age of such individual. In the case of a child 
                who was adopted, the term includes an 
                individual who, by blood or marriage, is a 
                grandparent or stepgrandparent of the child as 
                adopted.
                  (F) Qualified dwelling unit.--The term 
                ``qualified dwelling unit'' means a dwelling 
                unit that--
                          (i) has at least 2 separate bedrooms;
                          (ii) is equipped with design features 
                        appropriate to meet the special 
                        physical needs of elderly persons, as 
                        needed; and
                          (iii) is equipped with design 
                        features appropriate to meet the 
                        special physical needs of young 
                        children.
                  (G) Raising a child.--The term ``raising a 
                child'' means, with respect to an individual, 
                that the individual--
                          (i) resides with the child; and
                          (ii) is the primary caregiver for the 
                        child--
                                  (I) because the biological or 
                                adoptive parents of the child 
                                do not reside with the child or 
                                are unable or unwilling to 
                                serve as the primary caregiver 
                                for the child; and
                                  (II) regardless of whether 
                                the individual has a legal 
                                relationship to the child (such 
                                as guardianship or legal 
                                custody) or is caring for the 
                                child informally and has no 
                                such legal relationship with 
                                the child.
                  (H) Relative.--The term ``relative'' means, 
                with respect to a child, an individual who--
                          (i) is not a parent of the child by 
                        blood or marriage; and
                          (ii) is a relative of the child by 
                        blood or marriage, regardless of the 
                        age of the individual.
                In the case of a child who was adopted, the 
                term includes an individual who, by blood or 
                marriage, is a relative of the family who 
                adopted the child.

           *       *       *       *       *       *       *


SEC. 13. CONSORTIA, JOINT VENTURES, AFFILIATES, AND SUBSIDIARIES OF 
                    PUBLIC HOUSING AGENCIES.

  (a) * * *
  (b) Joint Ventures.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Non-federal funds and activities.--This 
        subsection shall not apply to any subsidiary, joint 
        venture, partnership, or business arrangement, or any 
        activity conducted by such an entity, that does not 
        involve holding or expending funds received from the 
        Federal Government or proceeds or income derived from 
        such funds.

           *       *       *       *       *       *       *


SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
                    TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.

  (a) Purposes.--The purpose of this section is to provide 
assistance to public housing agencies for the purposes of--
          (1)

           *       *       *       *       *       *       *

It is also the purpose of this section to provide assistance to 
smaller communities for the purpose of facilitating the 
development of affordable housing for low-income families that 
is undertaken in connection with a main street revitalization 
or redevelopment project in such communities.

           *       *       *       *       *       *       *

  (e) Application and Selection.--
          (1) * * *
          [(2) Selection criteria.--The Secretary shall 
        establish selection criteria for the award of grants 
        under this section and shall include such factors as--]
          (2) Selection criteria.--The Secretary shall 
        establish criteria for the award of grants under this 
        section and shall include among the factors--
                  (A) * * *
                  (B) the capability and record of the 
                applicant public housing agency, or any 
                alternative management entity for the agency, 
                for managing [large-scale] redevelopment or 
                modernization projects, meeting construction 
                timetables, and obligating amounts in a timely 
                manner;

           *       *       *       *       *       *       *

                  (D) the extent of involvement of residents, 
                State and local governments, private service 
                providers, financing entities, and developers, 
                in the development and ongoing implementation 
                of a revitalization program for the project;

           *       *       *       *       *       *       *

                  (H) the extent of the need for, and the 
                potential impact of, the revitalization 
                program; [and]
                  (I) the extent to which the applicant can 
                commence and complete the revitalization plan 
                expeditiously;
                  (J) the extent to which the plan minimizes 
                temporary or permanent displacement of current 
                residents of the public housing site who wish 
                to remain in or return to the revitalized 
                community;
                  (K) the extent to which the plan sustains or 
                creates more project-based housing units 
                available to persons eligible for public 
                housing in markets where there is demand for 
                the maintenance or creation of such units;
                  (L) the extent to which the plan gives to 
                existing residents priority for occupancy in 
                dwelling units in the revitalized community; 
                and
                  [(I)] (M) such other factors as the Secretary 
                considers appropriate.

           *       *       *       *       *       *       *

  (l) Annual Report.--The Secretary shall submit to the 
Congress an annual report setting forth--
          (1) * * *

           *       *       *       *       *       *       *

          (3) the amount and type of financial assistance 
        provided under and in conjunction with this section[; 
        and], including a specification of the amount and type 
        of assistance provided under subsection (n);
          (4) the types of projects funded, and number of 
        affordable housing dwelling units developed with, 
        grants under subsection (n); and
          [(4)] (5) the recommendations of the Secretary for 
        statutory and regulatory improvements to the program 
        established by this section.
  (m) Funding.--
          [(1) Authorization of appropriations.--There are 
        authorized to be appropriated for grants under this 
        section $600,000,000 for fiscal year 1999 and such sums 
        as may be necessary for each of fiscal years 2000, 
        2001, and 2002.]
          (1) Authorization of appropriations.--There are 
        authorized to be appropriated for grants under this 
        section such sums as may be necessary for each of 
        fiscal years 2003 and 2004.

           *       *       *       *       *       *       *

          (3) Of the amount appropriated pursuant to paragraph 
        (1) for any fiscal year, the Secretary shall provide up 
        to 5 percent for use only for grants under subsection 
        (n).
  (n) Grants for Assisting Affordable Housing Developed Through 
Main Street Projects in Smaller Communities.--
          (1) Authority and use of grant amounts.--The 
        Secretary may make grants under this subsection to 
        smaller communities. Such grant amounts shall be used 
        by smaller communities only to provide assistance to 
        carry out eligible affordable housing activities under 
        paragraph (3) in connection with an eligible project 
        under paragraph (2).
          (2) Eligible project.--For purposes of this 
        subsection, the term ``eligible project'' means a 
        project that--
                  (A) the Secretary determines, under the 
                criteria established pursuant to paragraph (3), 
                is a main street project;
                  (B) is carried out within the jurisdiction of 
                smaller community receiving the grant; and
                  (C) involves the development of affordable 
                housing that is located in the commercial area 
                that is the subject of the project.
          (3) Main street projects.--The Secretary shall 
        establish requirements for a project to be consider a 
        main street project for purposes of this section, which 
        shall require that the project--
                  (A) has as its purpose the revitalization or 
                redevelopment of a historic or traditional 
                commercial area;
                  (B) involves investment, or other 
                participation, by the government for, and 
                private entities in, the community in which the 
                project is carried out; and
                  (C) complies with such historic preservation 
                guidelines or principles as the Secretary shall 
                identify to preserve significant historic or 
                traditional architectural and design features 
                in the structures or area involved in the 
                project.
          (4) Eligible affordable housing activities.--For 
        purposes of this subsection, the activities described 
        in subsection (d)(1) shall be considered eligible 
        affordable housing activities, except that--
                  (A) such activities shall be conducted with 
                respect to affordable housing rather than with 
                respect to severely distressed public housing 
                projects; and
                  (B) eligible affordable housing activities 
                under this subsection shall not include the 
                activities described in subparagraphs (B) 
                through (F) or (J) through (L) of subsection 
                (d)(1).
          (5) Maximum grant amount.--A grant under this 
        subsection for a fiscal year for a single smaller 
        community may not exceed $1,000,000.
          (6) Contribution requirement.--A smaller community 
        applying for a grant under this subsection shall be 
        considered an applicant for purposes of subsection (c) 
        (relating to contributions by applicants), except 
        that--
                  (A) such supplemental amounts shall be used 
                only for carrying out eligible affordable 
                housing activities; and
                  (B) paragraphs (1)(B) and (3) shall not apply 
                to grants under this subsection.
          (7) Applications and selection.--
                  (A) Application.--Pursuant to subsection 
                (e)(1), the Secretary shall provide for smaller 
                communities to apply for grants under this 
                subsection, except that the Secretary may 
                establish such separate or additional criteria 
                for applications for such grants as may be 
                appropriate to carry out this subsection.
                  (B) Selection criteria.--The Secretary shall 
                establish selection criteria for the award of 
                grants under this subsection, which shall be 
                based on the selection criteria established 
                pursuant to subsection (e)(2), with such 
                changes as may be appropriate to carry out the 
                purposes of this subsection.
          (8) Cost limits.--The cost limits established 
        pursuant to subsection (f) shall apply to eligible 
        affordable housing activities assisted with grant 
        amounts under this subsection.
          (9) Inapplicability of other provisions.--The 
        provisions of subsections (g) (relating to disposition 
        and replacement of severely distressed public housing), 
        (h) (relating to administration of grants by other 
        entities), and (i) (relating to withdrawal of funding) 
        shall not apply to grants under this subsection.
          (10) Reporting.--The Secretary shall require each 
        smaller community receiving a grant under this 
        subsection to submit a report regarding the use of all 
        amounts provided under the grant.
          (11) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  (A) Affordable housing.--The term 
                ``affordable housing'' means rental or 
                homeownership dwelling units that--
                          (i) are made available for initial 
                        occupancy subject to the same rules 
                        regarding level of income and income 
                        mix as dwelling units in public housing 
                        projects assisted with a grant under 
                        this section; and
                          (ii) are subject to the same rules 
                        regarding occupant contribution toward 
                        rent or purchase and terms of rental or 
                        purchase as dwelling units in public 
                        housing projects assisted with a grant 
                        under this section.
                  (B) Smaller community.--The term ``smaller 
                community'' means a unit of general local 
                government (as such term is defined in section 
                102 of the Housing and Community Development 
                Act of 1974 (42 U.S.C. 5302)) that--
                          (i) has a population of 30,000 or 
                        fewer; and
                          (ii)(I) may not be not served by a 
                        public housing agency; or
                          (II) is served by a single public 
                        housing agency, which agency 
                        administers 100 or fewer public housing 
                        dwelling units.
  [(n)] (o) Sunset.--No assistance may be provided under this 
section after September 30, [2002] 2004.

           *       *       *       *       *       *       *


SEC. 36. DEMONSTRATION PROGRAM FOR GRANTS FOR CONVERSION OF PUBLIC 
                    HOUSING TO ASSISTED LIVING FACILITIES.

  (a) Grant Authority.--To the extent only that amounts are 
appropriated in advance to carry out this section, the 
Secretary shall carry out a program, in accordance with this 
section, to demonstrate the effectiveness of making grants to 
public housing agencies for use for activities designed to 
convert dwelling units in eligible projects described in 
subsection (b) to assisted living facilities or other 
facilities that expand the availability of supportive services, 
to enhance the ability of elderly persons to maintain 
independent living.
  (b) Eligible Projects.--An eligible project described in this 
subsection is a public housing project (or a portion thereof) 
that is primarily occupied by elderly persons.
  (c) Applications.--Applications for grants under the 
demonstration program under this section shall be submitted to 
the Secretary in accordance with such procedures as the 
Secretary shall establish. Such applications shall contain--
          (1) a description of the proposed conversion 
        activities for which a grant under the program is 
        requested;
          (2) the amount of the grant requested;
          (3) a description of the resources that are expected 
        to be made available, if any, in conjunction with the 
        grant under the program; and
          (4) such other information or certifications that the 
        Secretary determines to be necessary or appropriate.
  (d) Funding for Services.--The Secretary may not make a grant 
under the demonstration program under this section unless the 
application contains sufficient evidence, in the determination 
of the Secretary, that there will be adequate funding for 
supportive services for residents of the facility converted 
with grant amounts.
  (e) Service Coordinators.--An application for a grant under 
the demonstration program under this section may include a 
request for, and the Secretary may provide funds under the 
grant for, amounts to provide service coordinators to assist in 
the provision of supportive services for residents of the 
facilities converted with grant amounts.
  (f) Scope.--Grants under the demonstration program under this 
section may be made only with respect to three eligible 
projects.
  (g) Selection Criteria.--The Secretary shall select 
applications for grants under the demonstration program under 
this section based upon selection criteria, which shall be 
established by the Secretary and shall include--
          (1) the extent to which the conversion is likely to 
        provide assisted living facilities or supportive 
        services that are needed or are expected to be needed 
        by the categories of elderly persons that the assisted 
        living facility is intended to serve;
          (2) the extent of financial need on the part of the 
        applicant for funding to carry out the conversion 
        activities proposed;
          (3) the extent to which the agency has evidenced 
        community support for the conversion, by such 
        indicators as letters of support from the local 
        community for the conversion and financial 
        contributions from public and private sources;
          (4) the extent to which the applicant demonstrates a 
        strong commitment to promoting the autonomy and 
        independence of the elderly persons that the assisted 
        living facility or other supportive services facility 
        is intended to serve;
          (5) the quality, completeness, and managerial 
        capability of providing services to elderly residents, 
        especially in such areas as meals, 24-hour staffing, 
        and on-site health care; and
          (6) such other criteria as the Secretary determines 
        to be appropriate to ensure that funds made available 
        under the demonstration program under this section are 
        used effectively.
  (h) Definition.--For the purposes of this section, the term 
``assisted living facility'' has the meaning given such term in 
section 232(b) of the National Housing Act (12 U.S.C. 
1715w(b)).
  (i) Authorization of Appropriations.--There is authorized to 
be appropriated for providing grants under the demonstration 
program under this section such sums as may be necessary for 
each of fiscal years 2003 and 2004.

           *       *       *       *       *       *       *

                              ----------                              


 SECTION 557 OF THE QUALITY HOUSING AND WORK RESPONSIBILITY ACT OF 1998

SEC. 557. MANUFACTURED HOUSING DEMONSTRATION PROGRAM.

  (a) In General.--The Secretary of Housing and Urban 
Development shall carry out a program during fiscal years 
[1999, 2000, and 2001] 2002, 2003, and 2004 to demonstrate the 
effectiveness of providing, directly to eligible families that 
own manufactured homes and rent real property on which their 
homes are located, tenant-based assistance for the rental of 
such property that would otherwise be provided directly to the 
owners of such real property under section 8(o)(12) of the 
United States Housing Act of 1937.

           *       *       *       *       *       *       *

  (c) [Report] Reports.--Not later than March 31, 2002, the 
Secretary shall submit [a report] an interim report to the 
Congress describing [and evaluating] the implementation and 
operation of the demonstration program under this section. Not 
later than March 31, 2005, the Secretary shall submit a report 
to the Congress describing and evaluating the demonstration 
program under this section.

           *       *       *       *       *       *       *

                              ----------                              


      SECTION 524 OF THE MULTIFAMILY ASSISTED HOUSING REFORM AND 
                       AFFORDABILITY ACT OF 1997

SEC. 524. RENEWAL OF EXPIRING PROJECT-BASED SECTION 8 CONTRACTS.

  (a) In General.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Renewal rents.--Except as provided in subsection 
        (b), the contract for assistance shall provide 
        assistance at the following rent levels:
                  (A) Market rents.--At the request of the 
                owner of the project, at rent levels equal to 
                the lesser of comparable market rents for the 
                market area or 150 percent of the fair market 
                rents, in the case only of a project that--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iv) is not--
                                  (I) owned by a nonprofit 
                                entity; or
                                  [(II) subject to a contract 
                                for moderate rehabilitation 
                                assistance under section 
                                8(e)(2) of the United States 
                                Housing Act of 1937, as in 
                                effect before October 1, 1991; 
                                or]
                                  [(III)] (II) a project for 
                                which the public housing agency 
                                provided voucher assistance to 
                                one or more of the tenants 
                                after the owner has provided 
                                notice of termination of the 
                                contract covering the tenant's 
                                unit; and

           *       *       *       *       *       *       *

  (b) Exception Rents.--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) Moderate rehabilitation projects.--In the case 
        of a project with a contract under the moderate 
        rehabilitation program, other than a moderate 
        rehabilitation contract under section 441 of the 
        Stewart B. McKinney Homeless Assistance Act, pursuant 
        to the request of the owner of the project, the 
        contract for assistance for the project pursuant to 
        subsection (a) shall provide assistance at the lesser 
        of the following rent levels:
                  [(A) Adjusted existing rents.--The existing 
                rents under the expiring contract, as adjusted 
                by an operating cost adjustment factor 
                established by the Secretary (which shall not 
                result in a negative adjustment).
                  [(B) Fair market rents.--Fair market rents 
                (less any amounts allowed for tenant-purchased 
                utilities).
                  [(C) Market rents.--Comparable market rents 
                for the market area.]

           *       *       *       *       *       *       *

                              ----------                              


                 McKINNEY-VENTO HOMELESS ASSISTANCE ACT

SECTION 1. NATIONAL GOAL OF ENDING HOMELESSNESS.

  The Congress hereby declares that it is a national goal to 
end homelessness within 10 years after the enactment of the 
Housing Affordability for America Act of 2002.

                      TITLE I--GENERAL PROVISIONS

SECTION 101. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``McKinney-
Vento Homeless Assistance Act''.
  (b) Table Of Contents.--

Sec. 1. National goal of ending homelessness.

                       TITLE I--GENERAL PROVISIONS

Sec. 101. Short title and table of contents.
     * * * * * * *

             [TITLE II--INTERAGENCY COUNCIL ON THE HOMELESS]

       TITLE II--UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS

Sec. 201. Establishment.
     * * * * * * *

                      TITLE IV--HOUSING ASSISTANCE

          [Subtitle A--Comprehensive Homeless Assistance Plan]

                     Subtitle A--General Provisions

Sec. 401. Housing affordability strategy.
Sec. 402. Discharge coordination policy.
Sec. 403. Set-aside for permanent housing.
     * * * * * * *

 Subtitle D--Safe Havens for Homeless Individuals Demonstration Program

Sec. 431. Establishment of demonstration.
     * * * * * * *
[Sec. 443. Administrative provisions.]
Sec. 443. Environmental review.
     * * * * * * *

SEC. 102. FINDINGS AND PURPOSE.

  (a) * * *
  (b) Purpose.--It is the purpose of this Act--
          (1) to establish [an Interagency Council on the 
        Homeless] the United States Interagency Council on 
        Homelessness;

           *       *       *       *       *       *       *


            [TITLE II--INTERAGENCY COUNCIL ON THE HOMELESS]

      TITLE II--UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS

SEC. 201. ESTABLISHMENT.

  There is established in the executive branch an independent 
establishment to be known as the [Interagency Council on the 
Homeless] United States Interagency Council on Homelessness.

           *       *       *       *       *       *       *


SEC. 207. DEFINITIONS.

  For purposes of this title:
          (1) The term ``Council'' means the [Interagency 
        Council on the Homeless] United States Interagency 
        Council on Homelessness established in section 201.

           *       *       *       *       *       *       *


[SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
title $1,500,000 for fiscal year 1993 and $1,563,000 for fiscal 
year 1994.]

SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
title such sums as may be necessary for each of fiscal years 
2003 and 2004.

           *       *       *       *       *       *       *


   TITLE III--FEDERAL EMERGENCY MANAGEMENT FOOD AND SHELTER PROGRAM

           *       *       *       *       *       *       *


                   Subtitle C--General Provisions

           *       *       *       *       *       *       *


[SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
title $180,000,000 for fiscal year 1993 and $187,560,000 for 
fiscal year 1994.]

SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
title such sums as may be necessary for each of fiscal years 
2003 and 2004.

           *       *       *       *       *       *       *


                      TITLE IV--HOUSING ASSISTANCE

          [Subtitle A--Comprehensive Homeless Assistance Plan]

                    Subtitle A--General Provisions

           *       *       *       *       *       *       *


SEC. 403. SET-ASIDE FOR PERMANENT HOUSING.

  Notwithstanding any other provision of this title, of the 
aggregate amount made available for assistance under this title 
for any fiscal year, not less than 30 percent shall be used 
only for permanent housing activities for homeless persons. 
Amounts made available under section 429(d) or 463(c) for 
renewals of contracts for permanent housing shall be 
disregarded for purposes of the preceding sentence. For 
purposes of this section, the term ``permanent housing 
activities'' includes permanent housing designed primarily to 
serve homeless families with children.

              Subtitle B--Emergency Shelter Grants Program

           *       *       *       *       *       *       *


[SEC. 417. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
subtitle $138,000,000 for fiscal year 1993 and $143,796,000 for 
fiscal year 1994.]

SEC. 417. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
subtitle such sums as may be necessary for each of fiscal years 
2003 and 2004.

           *       *       *       *       *       *       *


                Subtitle C--Supportive Housing Program

           *       *       *       *       *       *       *


SEC. 423. ELIGIBLE ACTIVITIES.

  (a) In General.--The Secretary may provide any project with 
one or more of the following types of assistance under this 
subtitle:
          (1) Acquisition and rehabilitation.--A grant[, in an 
        amount not to exceed $200,000,] for the acquisition, 
        rehabilitation, or acquisition and rehabilitation, of 
        an existing structure (including a small commercial 
        property or office space) to provide supportive housing 
        other than emergency shelter or to provide supportive 
        services[; except that the Secretary may increase the 
        dollar limitation under this sentence to not more than 
        $400,000 for areas that the Secretary finds have high 
        acquisition and rehabilitation costs]. The repayment of 
        any outstanding debt owed on a loan made to purchase an 
        existing structure shall be considered to be a cost of 
        acquisition eligible for a grant under this paragraph 
        if the structure was not used as supportive housing, or 
        to provide supportive services, before the receipt of 
        assistance.
          (2) New construction.--A grant[, in an amount not to 
        exceed $400,000,] for new construction of a structure 
        to provide supportive housing.

           *       *       *       *       *       *       *


SEC. 429. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this subtitle $204,000,000 for 
fiscal year 1993 and $212,568,000 for fiscal year 1994.]
  (a) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this subtitle (not including 
activities funded pursuant to subsection (d) of this section) 
such sums as may be necessary for each of fiscal years 2003 and 
2004.

           *       *       *       *       *       *       *

  (d) Funding of Renewals.--
          (1) In general.--For fiscal year 2003 and fiscal 
        years thereafter, assistance under this subtitle may be 
        funded using amounts appropriated for section 8 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f).
          (2) Authorization of appropriations.--In addition to 
        any amounts otherwise made available for assistance 
        under section 8 of the United States Housing Act of 
        1937 (42 U.S.C. 1437f), there are authorized to be 
        appropriated such sums as may be necessary for each of 
        fiscal years 2003 and 2004 for the renewal of contracts 
        for permanent housing activities under this subtitle. 
        Any such renewals shall be made only for a term of one 
        year.

           *       *       *       *       *       *       *


                  Subtitle E--Miscellaneous Provisions

SEC. 441. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS.

  [(a) Increase in Budget Authority.--The budget authority 
available under section 5(c) of the United States Housing Act 
of 1937 for assistance under section 8(e)(2) of such Act is 
authorized to be increased by $105,000,000 on or after October 
1, 1992, and by $109,410,000 on or after October 1, 1993.]
  (a) Increase in Budget Authority.--The budget authority 
available under section 5(c) of the United States Housing Act 
of 1937 for assistance under section 8(e)(2) of such Act (as in 
effect pursuant to section 289(b)(2) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12839(b)(2)) is 
authorized to be increased by such sums as may be necessary on 
or after each of October 1, 2002, and October 1, 2003.

           *       *       *       *       *       *       *


                 Subtitle F--Shelter Plus Care Program

                      PART I--GENERAL REQUIREMENTS

           *       *       *       *       *       *       *


SEC. 456. REQUIRED AGREEMENTS.

    (a) Approval of Assistance.--The Secretary may not approve 
assistance under this subtitle unless the applicant agrees--
          (1) * * *

           *       *       *       *       *       *       *

  (b) Conditions of Renewal.--The Secretary may not provide 
assistance under this subtitle for any housing previously 
assisted under this subtitle unless the unit of general local 
government in which such project is located certifies that the 
housing complies with such housing safety and quality 
standards, as the Secretary shall establish and the Secretary 
reviews and approves such certification.

           *       *       *       *       *       *       *


SEC. 463. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--[For purposes of the housing programs under 
this subtitle, there are authorized to be appropriated 
$266,550,000 for fiscal year 1993 and $277,745,100 for fiscal 
year 1994.] For purposes of the housing programs under this 
subtitle, there are authorized to be appropriated to carry out 
this subtitle (not including activities funded pursuant to 
subsection (c) of this section) such sums as may be necessary 
for each of fiscal years 2003 and 2004. Of any amount 
appropriated in any fiscal year to carry out this subtitle--
          (1) * * *

           *       *       *       *       *       *       *

  (c) Funding of Renewals.--
          (1) In general.--For fiscal year 2003 and fiscal 
        years thereafter, assistance under this subtitle may be 
        funded using amounts appropriated for section 8 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f).
          (2) Authorization of appropriations.--In addition to 
        any amounts otherwise made available for assistance 
        under section 8 of the United States Housing Act of 
        1937 (42 U.S.C. 1437f), there are authorized to be 
        appropriated such sums as may be necessary for each of 
        fiscal years 2003 and 2004 for the renewal of contracts 
        under this subtitle. Any such renewals shall be made 
        only for a term of one year.

           *       *       *       *       *       *       *


      TITLE V--IDENTIFICATION AND USE OF SURPLUS FEDERAL PROPERTY

SEC. 501. USE OF UNUTILIZED AND UNDERUTILIZED PUBLIC BUILDINGS AND REAL 
                    PROPERTY TO ASSIST THE HOMELESS.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Publication of Properties.--(1) * * *
    (2)(A) No later than 15 days after the last day of the 45-
day period provided for under subsection (b)(1), the Secretary 
shall transmit a copy of the list of available properties 
published under paragraph (1)(A)(ii) to the [Interagency 
Council on the Homeless] United States Interagency Council on 
Homelessness. The Council shall immediately distribute to all 
State and regional homeless coordinators area-relevant portions 
of the list.

           *       *       *       *       *       *       *

    (d) Holding Period.--(1) * * *

           *       *       *       *       *       *       *

    (3) Property that is reviewed by the Secretary under 
subsection (a) and that is not identified by the Secretary as 
being suitable for use to assist the homeless may not be made 
available for any other purpose for 20 days after the 
determination of unsuitability to allow for review of the 
determination at the request of the representative of the 
homeless. The Secretary shall disseminate immediately this 
information to the regional offices of the Department of 
Housing and Urban Development and to the [Interagency Council 
on the Homeless] United States Interagency Council on 
Homelessness.

           *       *       *       *       *       *       *

                              ----------                              


       NATIVE AMERICAN HOUSING AND SELF-DETERMINATION ACT OF 1996

           *       *       *       *       *       *       *


              TITLE I--BLOCK GRANTS AND GRANT REQUIREMENTS

SEC. 101. BLOCK GRANTS.

  (a) * * *

           *       *       *       *       *       *       *

  (h) Administrative and Planning Expenses.--The Secretary 
shall, by regulation, authorize each recipient to use a 
percentage of any grant amounts received under this Act for 
comprehensive housing and community development planning 
activities and for any reasonable administrative and planning 
expenses of the recipient relating to carrying out this Act and 
activities assisted with such amounts, which may include costs 
for salaries of individuals engaged in administering and 
managing affordable housing activities assisted with grant 
amounts provided under this Act and expenses of preparing an 
Indian housing plan under section 102.

           *       *       *       *       *       *       *


[SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated for grants under 
this title such sums as may be necessary for each of fiscal 
years 1998, 1999, 2000, and 2001. This section shall take 
effect on the date of the enactment of this Act.]

SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated for grants under this 
title such sums as may be necessary for each of fiscal years 
2003 and 2004.

           *       *       *       *       *       *       *


     TITLE VI--FEDERAL GUARANTEES FOR FINANCING FOR TRIBAL HOUSING 
                              ACTIVITIES

           *       *       *       *       *       *       *


SEC. 605. LIMITATIONS ON AMOUNT OF GUARANTEES.

  (a) Aggregate Fiscal Year Limitation.--Notwithstanding any 
other provision of law and subject only to the absence of 
qualified applicants or proposed activities and to the 
authority provided in this title, to the extent approved or 
provided in appropriations Acts, the Secretary may enter into 
commitments to 
guarantee notes and obligations under this title with an 
aggregate principal amount not to exceed $400,000,000 for each 
of fiscal years [1997, 1998, 1999, 2000, and 2001] 2003 and 
2004.
  (b) Authorization of Appropriations for Credit Subsidy.--
There are authorized to be appropriated to cover the costs (as 
such term is defined in section 502 of the Congressional Budget 
Act of 1974) of guarantees under this title such sums as may be 
necessary for each of fiscal years [1997, 1998, 1999, 2000, and 
2001] 2003 and 2004.

           *       *       *       *       *       *       *


       TITLE VII--OTHER HOUSING ASSISTANCE FOR NATIVE AMERICANS

           *       *       *       *       *       *       *


SEC. 703. TRAINING AND TECHNICAL ASSISTANCE.

  There are authorized to be appropriated for assistance for a 
national organization representing Native American housing 
interests for providing training and technical assistance to 
Indian housing authorities and tribally designated housing 
entities such sums as may be necessary for each of fiscal years 
[1997, 1998, 1999, 2000, and 2001] 2003 and 2004.

           *       *       *       *       *       *       *

                              ----------                              


SECTION 501 OF THE AMERICAN HOMEOWNERSHIP AND ECONOMIC OPPORTUNITY ACT 
                                OF 2000

SEC. 501. LANDS TITLE REPORT COMMISSION.

  (a) Establishment.--[Subject to sums being provided in 
advance in appropriations Acts, there] There is established a 
Commission to be known as the Lands Title Report Commission 
(hereafter in this section referred to as the ``Commission'') 
to facilitate home loan mortgages on Indian trust lands. The 
Commission will be subject to oversight by the Committee on 
Banking and Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the 
Senate.
  (b) Membership.--
          (1) Appointment.--The Commission shall be composed of 
        12 members, appointed not later than 90 days after the 
        date of the enactment of [this Act] the American Indian 
        Lands Title Report Commission Corrections Act as 
        follows:
                  (A) * * *

           *       *       *       *       *       *       *

  (c) Initial Meeting.--The Chairperson of the Commission shall 
call the initial meeting of the Commission. Such meeting shall 
be held within 30 days after [the Chairperson of the Commission 
determines that sums sufficient for the Commission to carry out 
its duties under this Act have been appropriated for such 
purpose] the completion of the appointment of the initial 
members pursuant to subsection (b)(1).

           *       *       *       *       *       *       *

                              ----------                              


         SECTION 972 OF THE HIGHER EDUCATION AMENDMENTS OF 1998

[SEC. 972. GNMA GUARANTEE FEE.

  [(a) In General.--Section 306(g)(3)(A) of the National 
Housing Act (12 U.S.C. 1721(g)(3)(A)) is amended by striking 
``No fee or charge'' and all that follows through ``States)'' 
and inserting ``The Association shall assess and collect a fee 
in an amount equal to nine basis points''.
  [(b) Effective Date.--The amendment made by this section 
shall take effect on October 1, 2004.]
                              ----------                              


    SECTION 4 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ACT

             UNDER SECRETARY AND OTHER OFFICERS AND OFFICES

    Sec. 4. (a) * * *

           *       *       *       *       *       *       *

  (g)(1) The Secretary shall designate a single office of the 
Department in existence on the date of the enactment of the 
Housing Affordability for America Act of 2002 to establish, 
coordinate, and administrate all individual program 
requirements, standards, and performance measures under 
programs and laws administered by the Department that relate to 
housing counseling, homeownership counseling, mortgage-related 
counseling, and rental housing counseling, including the 
requirements, standards, and performance measures relating to 
housing counseling pursuant to the provisions of law specified 
in paragraph (2). To the extent that the Secretary is 
authorized by law to provide housing counseling services, the 
Secretary, in such circumstances or under such programs as the 
Secretary considers appropriate, may authorize such office to 
provide such housing counseling services.
  (2) The provisions specified in this paragraph are as 
follows:
          (A) Section 105(a)(20) of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 42 5305(a)(20)).
          (B) In the United States Housing Act of 1937--
                  (i) section 9(e) (42 U.S.C. 1437g(e));
                  (ii) section 8(y)(1)(D) (42 U.S.C. 
                1437f(y)(1)(D));
                  (iii) section 18(a)(4)(D) (42 U.S.C. 
                1437p(a)(4)(D));
                  (iv) section 23(c)(4) (42 U.S.C. 
                1437u(c)(4));
                  (v) section 32(e)(4) (42 U.S.C. 1437z-
                4(e)(4));
                  (vi) section 33(d)(2)(B) (42 U.S.C. 1437z-
                5(d)(2)(B));
                  (vii) sections 302(b)(6) and 303(b)(7) (42 
                U.S.C. 1437aaa-1(b)(6), 1437aaa-2(b)(7)); and
                  (viii) section 304(c)(4) (42 U.S.C. 1437aaa-
                3(c)(4)).
          (C) Section 302(a)(4) of the American Homeownership 
        and Economic Opportunity Act of 2000 (42 U.S.C. 1437f 
        note).
          (D) Sections 233(b)(2) and 258(b) of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 
        12773(b)(2), 12808(b)).
          (E) Sections 101(e) and 106 of the Housing and Urban 
        Development Act of 1968 (12 U.S.C. 1701w(e), 1701x).
          (F) Section 220(d)(2)(G) of the Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990 (12 
        U.S.C. 4110(d)(2)(G)).
          (G) Sections 422(b)(6), 423(b)(7), 424(c)(4), 
        442(b)(6), and 443(b)(6) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12872(b)(6), 
        12873(b)(7), 12874(c)(4), 12892(b)(6), and 
        12893(b)(6)).
          (H) Section 491(b)(1)(F)(iii) of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 
        11408(b)(1)(F)(iii)).
          (I) Sections 202(3) and 810(b)(2)(A) of the Native 
        American Housing and Self-Determination Act of 1996 (25 
        U.S.C. 4132(3), 4229(b)(2)(A)).
          (J) In the National Housing Act--
                  (i) in section 203 (12 U.S.C. 1709), the 
                penultimate undesignated paragraph of paragraph 
                (2) of subsection (b), subsection (c)(2)(A), 
                and subsection (r)(4);
                  (ii) subsections (a) and (c)(3) of section 
                237 (12 U.S.C. 1715z-2); and
                  (iii) subsections (d)(2)(B) and (m)(1) of 
                section 255 (12 U.S.C. 1715z-20).
          (K) Section 502(h)(4)(B) of the Housing Act of 1949 
        (42 U.S.C. 1472(h)(4)(B)).
          (L) Section 508 of the Housing and Urban Development 
        Act of 1970 (12 U.S.C. 1701z-7).
                              ----------                              


  SECTION 11 OF THE HOUSING OPPORTUNITY PROGRAM EXTENSION ACT OF 1996

SEC. 11. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Use.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Limitation on eligible expenses.--The amount from 
        grants under this section that is used for eligible 
        expenses (as such term is defined under paragraph (2)) 
        in connection with developing dwelling units described 
        in paragraph (1) may not exceed an average of $15,000 
        per dwelling unit developed by the grantee organization 
        or consortium, except that the Secretary may increase 
        such $15,000 amount for any particular geographic 
        region that the Secretary determines has elevated costs 
        of land acquisition or infrastructure improvement.

           *       *       *       *       *       *       *

  (i) Grant Agreement.--A grant under this section shall be 
made only pursuant to a grant agreement entered into by the 
Secretary and the organization or consortia receiving the 
grant, which shall--
          (1) * * *

           *       *       *       *       *       *       *

          (5) provide that the Secretary shall recapture any 
        grant amounts provided to the organization or consortia 
        that are not used within 24 months after such amounts 
        are first disbursed to the organization or consortia, 
        except that such period shall be 36 months in the case 
        of grant amounts from amounts made available for fiscal 
        year 1996 to carry out this section, and in the case of 
        a grant amounts provided to a local affiliate of the 
        organization or consortia that is developing five or 
        more dwellings in connection with such grant amounts, 
        and except that the Secretary may extend such period 
        for any organization or consortia to not more than 48 
        months in any case in which the Secretary determines, 
        in the sole discretion of the Secretary, that 
        extraordinary circumstances (including a national 
        emergency) warrant such extension; and

           *       *       *       *       *       *       *

  (j) Fulfillment of Grant Agreement.--If the Secretary 
determines that an organization or consortia awarded a grant 
under this section has not, within 24 months after grant 
amounts are first made available to the organization or 
consortia (or, in the case of grant amounts from amounts made 
available for fiscal year 1996 to carry out this section and 
grant amounts provided to a local affiliate of the organization 
or consortia that is developing five or more dwellings in 
connection with such grant amounts, within 36 months), 
substantially fulfilled the obligations under the grant 
agreement, including development of the appropriate number of 
dwellings under the agreement, the Secretary shall use any such 
undisbursed amounts remaining from such grant for other grants 
in accordance with this section. The Secretary may extend the 
period otherwise applicable under this subsection for any 
organization or consortia to not more than 48 months in any 
case in which the Secretary determines, in the sole discretion 
of the Secretary, that extraordinary circumstances (including a 
national emergency) warrant such extension.

           *       *       *       *       *       *       *

  (p) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section such sums as may be 
necessary for [fiscal year 2001] each of fiscal years 2003 and 
2004.

           *       *       *       *       *       *       *

                              ----------                              


      SECTION 105 OF THE HOUSING COMMUNITY DEVELOPMENT ACT OF 1974

                          ELIGIBLE ACTIVITIES

  Sec. 105. (a) Activities assisted under this title may 
include only--
          (1) * * *

           *       *       *       *       *       *       *

          (13) payment of reasonable administrative costs 
        related to establishing and administering federally 
        approved enterprise zones and renewal communities and 
        payment of reasonable administrative costs and carrying 
        charges related to (A) administering the HOME program 
        under title II of the Cranston-Gonzalez National 
        Affordable Housing Act; and (B) the planning and 
        execution of community development and housing 
        activities, including the provision of information and 
        resources to residents of areas in which community 
        development and housing activities are to be 
        concentrated with respect to the planning and execution 
        of such activities, and including the carrying out of 
        activities as described in section 701(e) of the 
        Housing Act of 1954 on the date prior to the date of 
        enactment of the Housing and Community Development 
        Amendments of 1981;

           *       *       *       *       *       *       *

          (22) provision of assistance to public and private 
        organizations, agencies, and other entities (including 
        nonprofit and for-profit entities) to enable such 
        entities to facilitate economic development by--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) providing general support (such as peer 
                support programs and counseling) to owners of 
                microenterprises and persons developing 
                microenterprises; [and]
          (23) activities necessary to make essential repairs 
        and to pay operating expenses necessary to maintain the 
        habitability of housing units acquired through tax 
        foreclosure proceedings in order to prevent abandonment 
        and deterioration of such housing in primarily low- and 
        moderate-income neighborhoods[.];
          (25) lead-based paint hazard evaluation and 
        reduction, as defined in section 1004 of the 
        Residential Lead-Based Paint Hazard Reduction Act of 
        1992[.];
          (26) the construction or improvement of tornado- or 
        storm-safe shelters for manufactured housing parks and 
        residents of other manufactured housing, the 
        acquisition of real property for sites for such 
        shelters, and the provision of assistance (including 
        loans and grants) to nonprofit or for-profit entities 
        (including owners of such parks) for such construction, 
        improvement, or acquisition, except that a shelter 
        assisted with amounts made available pursuant to this 
        paragraph shall be located in a neighborhood consisting 
        predominantly of persons of low and moderate income, 
        except that a shelter assisted with amounts made 
        available pursuant to this paragraph may not be made 
        available exclusively for use of the residents of a 
        particular manufactured housing park or of other 
        manufactured housing, but shall generally serve the 
        residents of the area in which it is located; and
          (27) provision of direct assistance to facilitate and 
        expand homeownership among uniformed employees 
        (including policemen, firemen, and sanitation and other 
        maintenance workers) of, and teachers who are employees 
        of, the metropolitan city or urban county (or an agency 
        or school district serving such city or county) 
        receiving grant amounts under this title pursuant to 
        section 106(b) or the unit of general local government 
        (or an agency or school district serving such unit) 
        receiving such grant amounts pursuant to section 
        106(d), except that--
                  (A) such assistance may only be provided on 
                behalf of such employees who are first-time 
                homebuyers under the meaning given such term in 
                section 104(14) of the Cranston-Gonzalez 
                National Affordable Housing Act (42 U.S.C. 
                12704(14)), except that, for purposes of this 
                paragraph, such section shall be applied by 
                substituting ``section 105(a)(27) of the 
                Housing and Community Development Act of 1974'' 
                for ``title II'';
                  (B) notwithstanding section 102(a)(20)(B) or 
                any other provision of this title, such 
                assistance may be provided on behalf of such 
                employees whose family incomes do not exceed--
                          (i) 115 percent of the median income 
                        of the area involved, as determined by 
                        the Secretary with adjustments for 
                        smaller and larger families; or
                          (ii) with respect only to areas that 
                        the Secretary determines have high 
                        housing costs, taking into 
                        consideration median house prices and 
                        median family incomes for the area, 150 
                        percent of the median income of the 
                        area involved, as determined by the 
                        Secretary with adjustments for smaller 
                        and larger families;
                  (C) such assistance shall be used only for 
                acquiring principal residences for such 
                employees, in a manner that involves obligating 
                amounts with respect to any particular mortgage 
                over a period of 1 year or less, by--
                          (i) providing amounts for 
                        downpayments on mortgages;
                          (ii) paying reasonable closing costs 
                        normally associated with the purchase 
                        of a residence;
                          (iii) obtaining pre- or post-purchase 
                        counseling relating to the financial 
                        and other obligations of homeownership; 
                        or
                          (iv) subsidizing mortgage interest 
                        rates; and
                  (D) any residence purchased using assistance 
                provided under this paragraph shall be subject 
                to restrictions on resale that are--
                          (i) established by the metropolitan 
                        city, urban county, or unit of general 
                        local government providing such 
                        assistance; and
                          (ii) determined by the Secretary to 
                        be appropriate to comply with 
                        subparagraphs (A) and (B) of section 
                        215(b)(3) of the Cranston-Gonzalez 
                        National Affordable Housing Act (42 
                        U.S.C. 12745(b)(3)), except that, for 
                        purposes of this paragraph, such 
                        subparagraphs shall be applied by 
                        substituting ``section 105(a)(27) of 
                        the Housing and Community Development 
                        Act of 1974'' for ``this title'';

           *       *       *       *       *       *       *

  (c)(1) * * *

           *       *       *       *       *       *       *

  (5) Homeownership Assistance for Municipal Employees.--
Notwithstanding any other provision of this title, any assisted 
activity described in subsection (a)(27) of this section shall 
be considered, for purposes of this title, to benefit persons 
of low and moderate income and to be directed toward the 
objective under section 101(c)(3).

           *       *       *       *       *       *       *

                              ----------                              


       SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968

SEC. 3. ECONOMIC OPPORTUNITIES FOR LOW- AND VERY LOW-INCOME PERSONS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Requirement for Hiring of New Employees.--
          (1) Thirty percent requirement.--It shall be a 
        condition of any contract awarded by a public or Indian 
        housing agency for work to be performed in connection 
        with development assistance provided from the Capital 
        Fund under section 9(d) of the United States Housing 
        Act of 1937, or from the Operating Fund under section 
        9(e) of such Act, that, except as provided in paragraph 
        2(B), a minimum of 30 percent of all new employees 
        hired by a contractor for work in connection with such 
        contract will be low- or very low-income persons.
          (2) Compliance.--As a condition of any contract 
        awarded for the work described in paragraph (1), any 
        contractor awarded such a contract shall--
                  (A)(i) immediately before beginning work 
                under such contract, submit evidence to the 
                satisfaction of the public or Indian housing 
                agency showing that a minimum of 30 percent of 
                all new employees hired for work in connection 
                with such contract are low- or very low-income 
                persons; and
                  (ii) submit evidence to the satisfaction of 
                the public or Indian housing agency showing 
                that a minimum of 30 percent of all 
                subsequently hired new employees hired for work 
                in connection with such contract are low- or 
                very low-income persons; or
                  (B) if such contractor cannot meet the 
                requirement imposed by paragraph (1)--
                          (i) submit evidence to the 
                        satisfaction of the public or Indian 
                        housing agency showing that such 
                        contractor has given notice of such 
                        contract to the one-stop delivery 
                        system for the area which the housing 
                        subject to the contract is located, 
                        including the particular skills and 
                        qualifications needed by potential new 
                        employees for work under such contract; 
                        and
                          (ii) provide to the public or Indian 
                        housing agency evidence, as the 
                        Secretary shall by regulation require, 
                        sufficient to show that no newly hired 
                        employees who are not low- or very low-
                        income persons are performing work in 
                        place of skilled low- or very low-
                        income persons who were provided by 
                        either the public or Indian housing 
                        agency or by the one-stop delivery 
                        system.
          (3) Training.--Any contractor awarded a contract for 
        the work described in paragraph (1) may not provide on-
        the-job training to any new employee for work under 
        such contract unless such new employee is a low- or 
        very low-income person.
  [(e)] (f) Definitions.--For the purposes of this section the 
following definitions shall apply:
          (1) * * *

           *       *       *       *       *       *       *

          (3) One-stop delivery system.--The term ``one-stop 
        delivery system'' has the meaning given that term in 
        section 134(c) of the Workforce Investment Act of 1998 
        (29 U.S.C. 2864(c)).
  [(f)] (g) Coordination With Other Federal Agencies.--The 
Secretary shall consult with the Secretary of Labor, the 
Secretary of Health and Human Services, the Secretary of 
Commerce, the Administrator of the Small Business 
Administration, and such other Federal agencies as the 
Secretary determines are necessary to carry out this section.
  [(g)] (h) Regulations.--Not later than 180 days after the 
date of enactment of the National Affordable Housing Act 
Amendments of 1992, the Secretary shall promulgate regulations 
to implement this section.
                              ----------                              


                 SECTION 515 OF THE HOUSING ACT OF 1949

direct and insured loans to provide housing and related facilities for 
              elderly persons and families in rural areas

    Sec. 515. (a) * * *

           *       *       *       *       *       *       *

  [(h) Project Transfers.--After]
  (h) Project Transfers.--
          (1) Limitation.--After the date of the enactment of 
        the Act entitled ``An Act making appropriations for 
        Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies programs for the 
        fiscal year ending September 30, 1997, and for other 
        purposes'', the ownership or control of a project for 
        which a loan is made or insured under this section may 
        be transferred only if the Secretary determines that 
        such transfer would further the provision of housing 
        and related facilities for low-income families or 
        persons and would be in the best interests of residents 
        and the Federal Government.
          (2) Transfer and renovation of existing projects.--
                  (A) Transfer.--In carrying out this Act, the 
                Secretary should encourage the transfer of 
                ownership or control of projects for which a 
                loan is made or insured under this section to 
                nonprofit organizations and local housing 
                authorities (including public housing 
                agencies).
                  (B) Renovation.--In carrying out this Act, 
                the Secretary should encourage, and give 
                priority in funding, to the renovation of 
                existing projects for which a loan is made or 
                insured under this section, subsequent to 
                transfer of such projects to nonprofit 
                organizations and housing authorities.

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    H.R. 3995, the Housing Affordability for America Act 
exceeds, Congress' constitutional boundaries and interferes 
with and distorts the operation of the frene market. Instead of 
expanding unconstitutional federal power, Congress should focus 
its energies on dismantling the federal housing bureaucracy so 
the American people can control housing resources and use the 
free market to meet their demands for affordable housing.
    The premise underlying H.R. 3995 is that the federal 
government is capable of determining the proper level of 
``affordable'' housing. However, as the great economist Ludwig 
Von Mises pointed out, questions of the proper allocation of 
resources for housing and other goods should be determined by 
consumer preference in the free market. Resources removed from 
the market and distributed according to the preferences of 
government politicians and bureaucrats are not devoted to their 
highest-valued use. Thus, government interference in the 
economy results in a loss of economic efficiency and, more 
importantly, a lower standard of living for all citizens.
    H.R. 3995 takes resources away from private citizens, 
through confiscatory taxation, and uses them for politically-
favored housing projects. Government subsidization of housing 
leads to an excessive allocation of resources to the housing 
market. Thus, thanks to government policy, resources that would 
have been devoted to education, transportation, or some other 
good desired by consumers, will instead be devoted to housing. 
Proponents of this bill ignore the socially-beneficial uses the 
monies devoted to housing might have been put to had those 
resources been left in the hands of private citizens.
    At the very least, federal housing programs should provide 
the maximum latitude for state and local governments to develop 
the type of housing programs best suited to their citizens' 
unique needs. However, according to the National Council of 
State Housing Agencies and the National League of Cities, H.R. 
3995 decreases state and local control over housing programs. 
This is because H.R. 3995 creates new mandates in block-grant 
programs thus reducing the ability of state and local 
authorities to use federal funds to meet their own unique 
needs. Forcing state and local officials to use housing funds 
to obey the dictates of DC-based politicians, who cannot know 
the unique conditions of every housing market in the country, 
does not seem like a sound housing policy.
    Finally, while I know this argument is unlikely to have 
much effect on my colleagues, I must point out that Congress 
has no constitutional authority to take money from one American 
and redistribute it to another. Legislation such as H.R. 3995, 
which takes tax money from some Americans to give to others 
whom Congress has determined are worthy, is thus blatantly 
unconstitutional.
    I hope no one confuses my opposition to this bill as 
opposition to any Congressional actions to ensure more 
Americans have access to affordable housing. After all, one 
reason many Americans lack affordable housing is because taxes 
and regulations have made it impossible for builders to provide 
housing at a price that could be afforded by many lower-income 
Americans. Therefore Congress should cut taxes and regulations. 
A good start would be generous housing tax credits. Congress 
should also consider tax credits and regulatory relief of 
developers who provide housing for those with low-incomes.
    H.R. 3995 distorts the economy, reduces state and local 
authority over housing programs and violates constitutional 
prohibitions on income redistribution. A better way of 
guaranteeing an efficient housing market where everyone could 
meet their own needs for housing is for Congress to repeal 
taxes and programs that burden the housing industry and allow 
housing needs to be met by the free market. Therefore, I urge 
my colleagues to reject this bill and instead develop housing 
policies consistent with constitutional principles, the laws of 
economics, and respect for individual rights.

                                                          Ron Paul.