[House Report 107-640]
[From the U.S. Government Publishing Office]
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.