101st CONGRESS
1st Session
H. R. 1
AMENDMENT
HR 1 EAS
In the Senate of the United States,
November 22 (legislative day, November 6), 1989.
Resolved, That the bill from the House of Representatives (H.R. 1)
entitled `An Act to amend Federal laws to reform housing, community and
neighborhood development, and related programs, and for other purposes',
do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:

2828fa45e32ba193250bef21f7771b95a06ed1913d0fabdf4929c4dc62bd9f87

(a) SHORT TITLE- This Act may be cited as the `Department of Housing and
Urban Development Reform Act of 1989'.
(b) TABLE OF CONTENTS-

771d0dc9c29e3fcbdc6b53fe2f0e8fe90b723ab51fa780c08e54dd3bb2d63196

9ea1b10397f2d9515fd70db3e75a6c543bca6f0762a2b737f50188b4602e3491

ce5735239f01c3c572c2fe91c1de5d31a1d4f818143c4ac01af89025e642aa42

TITLE I

-REFORMS TO DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

bb9f8a4d86e99c771f123d263ac287e8f24d840f584a3e3217bc02571c07851e

cfb2e103b598d5dc0adecf6d795715d6f1032db5374334560ce82ab0e886e845

Subtitle C--Federal Housing Administration Reforms

218d81e5abc6d3a4ece131118dd39c4b74c28f23e8ffa24cbea66b4ab0695d41

single family program for life of mortgage.

7401ee7c473b33477d3e31200cd0ab935b2fb5510105490865be268dc0b1d2f9

participation in origination of property improvement loans.

543cf9cd970c7e275da6aed48ce67cc20cb74ad5fbcf2096f485c7ddcab0792e

3ce1b0664cff5ba8d8fda21d8dd158be806ae42af3e3f8810e9aa39904c65afb

0a7ccd3a6dd7cd0dbbd12fbfc9f9e023bbd7ef18e6a99c6bc45b5725d822380e

d9647caaca0f7438021d8e14d2f064810704f5320085474566bb45d9e3a2cc4d

TITLE III

-HOUSING PROGRAM EXTENSIONS AND CHANGES

f19405aad44af61ac109899fe68bf0a5ff3f33e54f79bd339748a60a0d588460

TITLE V

-NATIONAL COMMISSION ON SEVERELY DISTRESSED PUBLIC HOUSING

under section 312 rehabilitation loan program.

a1cab81c89b32a05ce146dcb55d91e1be8362be56e437ce0081ff14129178914

TITLE VII

-MISCELLANEOUS

TITLE VIII

-SECTION 8 RENT ADJUSTMENTS

(a) ASSISTANCE SUBJECT TO FORMULA ALLOCATION- Section 213(d)(1) of the
Housing and Community Development Act of 1974 is amended to read as follows:
`(d)(1)(A) Except as provided by subparagraph (B), the Secretary shall
allocate assistance referred to in subsection (a)(1) the first time it is
available for reservation on the basis of a formula that is contained in a
regulation prescribed by the Secretary, and that is based on the relative
needs of different States, areas, and communities, as reflected in data as
to population, poverty, housing overcrowding, housing vacancies, amount of
substandard housing, and other objectively measurable conditions specified
in the regulation. In allocating assistance under this paragraph for each
program of housing assistance under subsection (a)(1), the Secretary shall
apply the formula, to the extent practicable, in a manner so that the
assistance under the program is allocated according to the particular
relative needs under the preceding sentence that are characteristic
of and related to the particular type of assistance provided under the
program. Assistance under section 202 of the Housing Act of 1959 shall be
allocated in a manner that ensures that awards of the assistance under such
section are made for projects of sufficient size to accommodate facilities
for supportive services appropriate to the needs of frail elderly residents.
`(B) The formula allocation requirements of subparagraph (A) shall not
apply to--
`(i) assistance that is approved in appropriation Acts for use under section
9 or 14, or the rental rehabilitation grant program under section 17,
of the United States Housing Act of 1937, except that the Secretary shall
comply with section 102 of the Department of Housing and Urban Development
Reform Act of 1989 with respect to such assistance; or
`(ii) other assistance referred to in subsection (a) that is approved in
appropriation Acts for uses that the Secretary determines are incapable of
geographic allocation, including amendments of existing contracts, renewal
of assistance contracts, assistance to families that would otherwise lose
assistance due to the decision of the project owner to prepay the project
mortgage or not to renew the assistance contract, assistance to prevent
displacement or to provide replacement housing in connection with the
demolition or disposition of public and Indian housing, and assistance
in support of the property disposition and loan management functions of
the Secretary.
`(C) Any allocation of assistance under subparagraph (A) shall, as
determined by the Secretary, be made to the smallest practicable area,
consistent with the delivery of assistance through a meaningful competitive
process designed to serve areas with greater needs.
`(D) Any amounts allocated to a State or areas or communities within a State
that are not likely to be used within a fiscal year shall not be reallocated
for use in another State, unless the Secretary determines that other areas
or communities (that are eligible for assistance under the program) within
the same State cannot use the amounts within that same fiscal year.'.
(b) ALLOCATION TO NONMETROPOLITAN AREAS- The second sentence of section
213(d)(2) of the Housing and Community Development Act of 1974 is amended
by striking `such assistance' and inserting `the assistance that is subject
to allocation under paragraph (1)(A)'.
(c) COMPETITION FOR ASSISTANCE- Section 213(d) of the Housing and Community
Development Act of 1974 is amended by adding at the end the following
new paragraph:
`(5)(A) The Secretary shall not reserve or obligate assistance subject
to allocation under paragraph (1)(A) to specific recipients, unless the
assistance is first allocated on the basis of the formula contained in
that paragraph and then is reserved and obligated pursuant to a competition.
`(B) Any competition referred to in subparagraph (A) shall be conducted
pursuant to specific criteria for the selection of recipients of
assistance. The criteria shall be contained in--
`(i) a regulation promulgated by the Secretary after notice and public
comment; or
`(ii) to the extent authorized by law, a notice published in the Federal
Register.
`(C) Subject to the times at which appropriations for assistance subject to
paragraph (1)(A) may become available for reservation in any fiscal year,
the Secretary shall take such steps as the Secretary deems appropriate to
ensure that, to the maximum extent practicable, the process referred to
in subparagraph (A) is carried out with similar frequency and at similar
times for each fiscal year.
`(D) This paragraph shall not apply to assistance referred to in paragraph
(4).'.
(d) APPLICABILITY- In accordance with section 201(b)(2) of the United
States Housing Act of 1937, the amendments made by subsections (a), (b),
and (c) of this section shall also apply to public housing developed or
operated pursuant to a contract between the Secretary of Housing and Urban
Development and an Indian housing authority.
(e) CONFORMING AMENDMENT- Section 213(a)(1) of the Housing and Community
Development Act of 1974 is amended by striking `section 235 or 236 of the
National Housing Act,'.

4efae4deccbe9b402d8914be1140964adb9520b201473669a252975e59007d53

(a) NOTICE REGARDING ASSISTANCE-
(1) PUBLICATION OF NOTICE OF AVAILABILITY- The Secretary shall publish in
the Federal Register notice of the availability of any assistance under
any program or discretionary fund administered by the Secretary.
(2) PUBLICATION OF APPLICATION PROCEDURES- The Secretary shall publish in
the Federal Register a description of the form and procedures by which
application for the assistance may be made, and any deadlines relating
to the award or allocation of the assistance. Such description shall be
designed to help eligible applicants to apply for such assistance.
(3) PUBLICATION OF SELECTION CRITERIA- Not less than 30 days before any
deadline by which applications or requests for assistance under any program
or discretionary fund administered by the Secretary must be submitted,
the Secretary shall publish in the Federal Register the criteria by which
selection for the assistance will be made. Subject to section 213 of the
Housing and Community Development Act of 1974, such criteria shall include
any objective measures of housing need, project merit, or efficient use
of resources that the Secretary determines are appropriate and consistent
with the statute under which the assistance is made available.
(4) DOCUMENTATION OF DECISIONS-
(A) The Secretary shall award or allocate assistance only in response
to a written application in a form approved in advance by the Secretary,
except where other award or allocation procedures are specified in statute.
(B) The Secretary shall ensure that documentation and other information
regarding each application for assistance is sufficient to indicate the
basis on which any award or allocation was made or denied. The preceding
sentence shall apply to--
(i) any application for an award or allocation of assistance made by the
Secretary to a State, unit of general local government, or other recipient
of assistance, and
(ii) any application for a subsequent award or allocation of such assistance
by such State, unit of general local government or other recipient.
(C)(i) The Secretary shall notify the public of all funding decisions
made by the Department. The Secretary shall require any State or unit of
general local government to notify the public of the award or allocation
of such funding to subsequent recipients. The notification shall include
the following elements for each funding decision:
(I) the name and address of each funding recipient;
(II) the name or other means of identifying the project, activity, or
undertaking for each funding recipient;
(III) the dollar amount of the funding for each project, activity,
or undertaking;
(IV) the citation to the statutory, regulatory, or other criteria under
which the funding decision was made; and
(V) such additional information as the Secretary deems appropriate for a
clear and full understanding of the funding decision.
(ii) The notification referred to in clause (i) of this subsection shall
be published as a Notice in the Federal Register at least quarterly.
(iii) For purposes of this subparagraph, the term `funding decision'
means the decision of the Secretary to make available grants, loans,
or any other form of financial assistance to an individual or to an
entity, including (but not limited to) a State or local government or
agency thereof (including a public housing agency), an Indian tribe, or a
nonprofit organization, under any program administered by the Department
that provides, by statute, regulation, or otherwise, for the competitive
distribution of financial assistance.
(D) The Secretary shall publish a notice in the Federal Register at least
annually informing the public of the allocation of assistance under section
213(d)(1)(A) of the Housing and Community Development Act of 1974.
(E) The Secretary shall ensure that each application and all related
documentation and other information referred to in subparagraph (B),
including each letter of support, is readily available for public inspection
for a period of not less than 5 years, beginning not less than 30 days
following the date on which the award or allocation is made.
(5) EMERGENCY EXCEPTION- The Secretary may waive the requirements of
paragraphs (1), (2), and (3) if the Secretary determines that the waiver
is required for appropriate response to an emergency. Not less than 30
days after providing a waiver under the preceding sentence, the Secretary
shall publish in the Federal Register the Secretary's reasons for so doing.
(b) DISCLOSURES BY APPLICANTS- The Secretary shall require the disclosure
of information with respect to any application for assistance within
the jurisdiction of the Department for a project application submitted
to the Secretary or to any State or unit of general local government by
any applicant who has received or, in the determination of the Secretary,
can reasonably be expected to receive assistance within the jurisdiction
of the Department in excess of $200,000 in the aggregate during any fiscal
year or such lower amount as the Secretary may establish by regulation. Such
information shall include the following:
(1) OTHER GOVERNMENT ASSISTANCE- Information regarding any related assistance
from the Federal Government, a State, or a unit of general local government,
or any agency or instrumentality thereof, that is expected to be made
available with respect to the project or activities for which the applicant
is seeking assistance. Such related assistance shall include but not be
limited to any loan, grant, guarantee, insurance, payment, rebate, subsidy,
credit, tax benefit, or any other form of direct or indirect assistance.
(2) INTERESTED PARTIES- The name and pecuniary interest of any person who has
a pecuniary interest in the project or activities for which the applicant
is seeking assistance. Persons with a pecuniary interest in the project or
activity shall include but not be limited to any developers, contractors,
and consultants involved in the application for assistance or the planning,
development, or implementation of the project or activity. For purposes of
this paragraph, residency of an individual in housing for which assistance
is being sought shall not, by itself, be considered a pecuniary interest.
(3) EXPECTED SOURCES AND USES- A report satisfactory to the Secretary of
the expected sources and uses of funds that are to be made available for
the project or activity.
(c) UPDATING OF DISCLOSURE- During the period when an application is
pending or assistance is being provided, the applicant shall update the
disclosure required under the previous subsection within 30 days of any
substantial change.
(d) LIMITATION OF ASSISTANCE- The Secretary shall certify that assistance
within the jurisdiction of the Department to any housing project shall
not be more than is necessary to provide affordable housing after taking
account of assistance described in subsection (b)(1). The Secretary shall
adjust the amount of assistance awarded or allocated to an applicant
to compensate in whole or in part, as the Secretary determines to be
appropriate, for any changes reported under subsection (c).
(e) ADMINISTRATIVE REMEDIES- If the Secretary receives or obtains information
providing a reasonable basis to believe that a violation of subsection
(b) or (c) has occurred, the Secretary shall--
(1) in the case of a selection that has not been made, determine whether
to terminate the selection process or take other appropriate actions; and
(2) in the case of a selection that has been made, determine whether to--
(A) void or rescind the selection, subject to review and determination on
the record after opportunity for a hearing;
(B) impose sanctions upon the violator, including debarment, subject to
review and determination on the record after opportunity for a hearing;
(C) recapture any funds that have been disbursed;
(D) permit the violating applicant selected to continue to participate in
the program; or
(E) take any other actions that the Secretary considers appropriate.
The Secretary shall publish in the Federal Register a descriptive statement
of each determination made and action taken under this subsection.
(f) CIVIL MONEY PENALTIES-
(1) IN GENERAL- Whenever any person knowingly and materially violates
any provision of subsection (b) or (c), the Secretary may impose a civil
money penalty on that person in accordance with the provisions of this
section. This penalty shall be in addition to any other available civil
remedy or any available criminal penalty, and may be imposed whether or
not the Secretary imposes other administrative sanctions.
(2) AMOUNT OF PENALTY- The amount of the penalty, as determined by the
Secretary, may not exceed $10,000 for each violation.
(g) AGENCY PROCEDURES- (1) The Secretary shall establish standards and
procedures governing the imposition of civil money penalties under subsection
(f). These standards and procedures--
(A) shall provide for the Secretary to make the determination to impose
the penalty or to use an administrative entity to make the determination;
(B) shall provide for the imposition of a penalty only after the person
has been given an opportunity for a hearing on the record; and
(C) may provide for review by the Secretary of any determination or order,
or interlocutory ruling, arising from a hearing.
If no hearing is requested within 15 days of receipt of the notice of
opportunity for hearing, the imposition of the penalty shall constitute a final
and unappealable determination. If the Secretary reviews the determination
or order, the Secretary may affirm, modify, or reverse that determination
or order. If the Secretary does not review the determination or order,
the determination or order shall be final.
(2) FACTORS IN DETERMINING AMOUNT OF PENALTY- In determining the amount of a
penalty under subsection (f), consideration shall be given to such factors
as the gravity of the offense, ability to pay the penalty, injury to the
public, benefits received, deterrence of future violations, and such other
factors as the Secretary may determine in regulations to be appropriate.
(3) REVIEWABILITY OF IMPOSITION OF A PENALTY- The Secretary's determination
or order imposing a penalty under subsection (f) shall not be subject to
review, except as provided in subsection (h).
(h) JUDICIAL REVIEW OF AGENCY DETERMINATION-
(1) IN GENERAL- After exhausting all administrative remedies established by
the Secretary under subsection (g)(1), a person against whom the Secretary
has imposed a civil money penalty under subsection (f) may obtain a review
of the penalty and such ancillary issues as may be addressed in the
notice of determination to impose a penalty under subsection (g)(1)(A)
in the appropriate court of appeals of the United States, by filing in
such court, within 20 days after the entry of such order or determination,
a written petition praying that the order or determination of the Secretary
be modified or be set aside in whole or in part.
(2) OBJECTIONS NOT RAISED IN HEARING- The court shall not consider any
objection that was not raised in the hearing conducted pursuant to subsection
(g)(1) unless a demonstration is made of extraordinary circumstances
causing the failure to raise the objection. If any party demonstrates to
the satisfaction of the court that additional evidence not presented at
the hearing is material and that there were reasonable grounds for the
failure to present such evidence at the hearing, the court shall remand
the matter to the Secretary for consideration of such additional evidence.
(3) SCOPE OF REVIEW- The decisions, findings, and determinations of the
Secretary shall be reviewed pursuant to section 706 of title 5, United
States Code.
(4) ORDER TO PAY PENALTY- Notwithstanding any other provision of law,
in any such review, the court shall have the power to order payment of
the penalty imposed by the Secretary.
(i) ACTION TO COLLECT THE PENALTY- If any person fails to comply with
the determination or order of the Secretary imposing a civil money
penalty under subsection (f), after the determination or order is no
longer subject to review as provided by subsections (g)(1) and (h),
the Secretary may request the Attorney General of the United States
to bring an action in an appropriate United States district court to
obtain a monetary judgment against the person and such other relief as
may be available. The monetary judgment may, in the court's discretion,
include the attorneys' fees and other expenses incurred by the United
States in connection with the action. In an action under this subsection,
the validity and appropriateness of the Secretary's determination or order
imposing the penalty shall not be subject to review.
(j) SETTLEMENT BY THE SECRETARY- The Secretary may compromise, modify,
or remit any civil money penalty which may be, or has been, imposed under
this section.
(k) REGULATIONS- The Secretary shall issue such regulations as the Secretary
deems appropriate to implement this section.
(l) DEPOSIT OF PENALTIES- The Secretary shall deposit all civil money
penalties collected under this section into miscellaneous receipts of
the Treasury.
(m) DEFINITIONS- For the purpose of this section--
(1) The term `Department' means the Department of Housing and Urban
Development.
(2) The term `Secretary' means the Secretary of Housing and Urban
Development.
(3) The term `person' means an individual (including a consultant,
lobbyist, or lawyer), corporation, company, association, authority, firm,
partnership, society, State, local government, or any other organization
or group of people.
(4) The term `assistance within the jurisdiction of the Department'
includes any contract, grant, loan, cooperative agreement, or other form
of assistance, including the insurance or guarantee of a loan, mortgage,
or pool of mortgages.
(5) The term `knowingly' means having actual knowledge of or acting with
deliberate ignorance of or reckless disregard for the prohibitions under
this section.
(n) EFFECTIVE DATE- This section shall take effect on the date specified
in regulations implementing this section that are issued by the Secretary
after notice and public comment.

d0e3f956866ef6f53a6e9a46cd34317cd573beb79701ffcac271f0b09b6c0403

The Department of Housing and Urban Development Act is amended by adding
at the end the following new section:
`PROHIBITION OF ADVANCE DISCLOSURE OF FUNDING DECISIONS
`SEC. 12. (a) PROHIBITED ACTIONS- During any selection process, no officer or
employee of the Department of Housing and Urban Development shall knowingly
disclose any covered selection information regarding such selection,
directly or indirectly, to any person other than a person authorized by
the Secretary to receive such information.
`(b) ADMINISTRATIVE REMEDIES- If the Secretary receives or obtains
information providing a reasonable basis to believe that a violation of
subsection (a) has occurred, the Secretary shall--
`(1) in the case of a selection that has not been made, determine whether
to terminate the selection process or take other appropriate actions; and
`(2) in the case of a selection that has been made, determine whether to--
`(A) void or rescind the selection, subject to review and determination
on the record after opportunity for a hearing;
`(B) impose sanctions upon the violating applicant selected, subject to
review and determination on the record after opportunity for a hearing;
`(C) permit the violating applicant selected to continue to participate
in the program; or
`(D) take any other actions that the Secretary considers appropriate.
`(c) CIVIL MONEY PENALTIES-
`(1) IN GENERAL- Whenever any employee of the Department knowingly and
materially violates the prohibition in subsection (a), the Secretary
may impose a civil money penalty on the employee in accordance with the
provisions of this subsection. This penalty shall be in addition to any
other available civil remedy or any available criminal penalty and may be
imposed whether or not the Secretary takes other disciplinary actions.
`(2) AMOUNT- The amount of the penalty, as determined by the Secretary,
may not exceed $10,000 for each violation.
`(3) AGENCY PROCEDURES-
`(A) ESTABLISHMENT- The Secretary shall establish standards and procedures
governing the imposition of civil money penalties under this subsection. The
standards and procedures--
`(i) shall provide for the Secretary or other official of the Department
to make the determination to impose a penalty or to use an administrative
entity to make the determination;
`(ii) shall provide for the imposition of a penalty only after the employee
has been given an opportunity for a hearing on the record; and
`(iii) may provide for review of any determination or order, or interlocutory
ruling, arising from a hearing.
`(B) FINAL ORDERS- If no hearing is requested within 15 days of receipt of
the notice of opportunity for hearing, the imposition of the penalty shall
constitute a final and unappealable order. If the Secretary reviews the
determination or order, the Secretary may affirm, modify, or reverse that
determination or order. If the Secretary does not review the determination
or order within 90 days of the issuance of the determination or order,
the determination or order shall be final.
`(C) FACTORS IN DETERMINING AMOUNT OF PENALTY- In determining the amount
of a penalty under paragraph (2), consideration shall be given to such
factors as the gravity of the offense, any history of prior disclosures of
information on pending funding decisions made after the date of enactment
of this section, ability to pay the penalty, injury to the public, benefits
received, deterrence of future violations, and such other factors as the
Secretary may determine in regulations to be appropriate.
`(D) REVIEWABILITY OF IMPOSITION OF A PENALTY- The Secretary's determination
or order imposing a penalty under paragraph (1) shall not be subject to
review, except as provided in paragraph (4).
`(4) JUDICIAL REVIEW OF AGENCY DETERMINATION-
`(A) IN GENERAL- After exhausting all administrative remedies established
by the Secretary under paragraph (3)(A), an employee against whom the
Secretary has imposed a civil money penalty under paragraph (1) may
obtain a review of the penalty and such ancillary issues (such as any
administrative sanctions under 24 C.F.R. part 25) as may be addressed in
the notice of determination to impose a penalty under paragraph (3)(A)(i)
in the appropriate court of appeals of the United States, by filing in
such court, within 20 days after the entry of such order or determination,
a written petition praying that the Secretary's order or determination be
modified or be set aside in whole or in part.
`(B) OBJECTIONS NOT RAISED IN HEARING- The court shall not consider any
objection that was not raised in the hearing conducted pursuant to paragraph
(3)(A) unless a demonstration is made of extraordinary circumstances
causing the failure to raise the objection. If any party demonstrates to
the satisfaction of the court that additional evidence not presented at
such hearing is material and that there were reasonable grounds for the
failure to present such evidence at the hearing, the court shall remand
the matter to the Secretary for consideration of such additional evidence.
`(C) SCOPE OF REVIEW- The decisions, findings, and determinations of the
Secretary shall be reviewed pursuant to section 706 of title 5, United
States Code.
`(D) ORDER TO PAY PENALTY- Notwithstanding any other provision of law,
in any such review, the court shall have the power to order payment of
the penalty imposed by the Secretary.
`(5) ACTION TO COLLECT PENALTY- If any employee fails to comply with the
Secretary's determination or order imposing a civil money penalty under
paragraph (1), after the determination or order is no longer subject
to review as provided by paragraphs (3)(A) and (4), the Secretary may
request the Attorney General of the United States to bring an action in an
appropriate United States district court to obtain a monetary judgment
against the employee and such other relief as may be available. The
monetary judgment may, in the court's discretion, include the attorneys'
fees and other expenses incurred by the United States in connection with the
action. In an action under this subsection, the validity and appropriateness
of the Secretary's determination or order imposing the penalty shall not
be subject to review.
`(6) SETTLEMENT BY SECRETARY- The Secretary may compromise, modify, or
remit any civil money penalty which may be, or has been, imposed under
this subsection.
`(7) DEPOSIT OF PENALTIES- The Secretary shall deposit all civil money
penalties collected under this subsection into miscellaneous receipts of
the Treasury.
`(d) CRIMINAL PENALTIES- Whoever willfully violates subsection (a) by making
a disclosure prohibited by subsection (a) to any applicant, or any officer,
employee, representative, agent, or consultant of any applicant, shall be
imprisoned not more than 5 years, or fined in accordance with title 18,
United States Code, or both.
`(e) DEFINITIONS- For purposes of this section:
`(1) APPLICANT- The term `applicant' means any applicant or candidate that
is being considered for receiving assistance.
`(2) ASSISTANCE- The term `assistance' means any grant, loan, subsidy,
guarantee, or other financial assistance under a program administered by
the Secretary that provides by statute, regulation, or otherwise for the
competitive distribution of such assistance. The term does not include any
mortgage insurance provided under a program administered by the Secretary.
`(3) COVERED SELECTION INFORMATION- The term `covered selection information'
means--
`(A) any information that is contained in any application or request for
assistance, or any information regarding the decision of the Secretary to
make available assistance or other information that is determined by the
Secretary to be information that is not generally available to the public
(not including program requirements and timing of the decision to make
assistance available); and
`(B) any information that is required by statute, regulation, or order to
be confidential.
`(4) KNOWINGLY- The term `knowingly' means having actual knowledge of
or acting with deliberate ignorance of or reckless disregard for the
prohibitions under this section.
`(5) SELECTION- The term `selection' means the determination of which
applicants for assistance are to receive assistance under the program.
`(6) SELECTION PROCESS- The term `selection process' means the period with
respect to a selection for assistance that begins with the development,
preparation, and issuance of a solicitation or request for applications for
the assistance and concludes with the selection of recipients of assistance,
and includes the evaluation of applications.
`(f) REGULATIONS- The Secretary shall issue such regulations as the
Secretary deems appropriate to implement this section.
`(g) APPLICABILITY- This section shall apply only with respect to violations
that occur on or after the date of the enactment of the Department of
Housing and Urban Development Reform Act of 1989.'.

5d8c5ccfb8c685b7aa2b8a052d95b73eafffb3aeb2669bc3827f3399be4b96d1

(a) FUNDING CATEGORIES- Section 213(d)(4) of the Housing and Community
Development Act of 1974 is amended to read as follows:
`(4)(A) Notwithstanding any other provision of law, with respect to fiscal
years beginning after September 30, 1990, the Secretary may retain not more
than 5 percent of the financial assistance that becomes available under
programs described in subsection (a)(1) during any fiscal year. Any such
financial assistance that is retained shall be available for subsequent
allocation to specific areas and communities, and may only be used for--
`(i) unforeseen housing needs resulting from natural and other disasters;
`(ii) housing needs resulting from emergencies, as certified by the
Secretary, other than such disasters;
`(iii) housing needs resulting from the settlement of litigation; and
`(iv) housing in support of desegregation efforts.
`(B) Any amounts retained in any fiscal year under subparagraph (A) that
are unexpended at the end of such fiscal year shall remain available
for the following fiscal year under the program under subsection (a)(1)
from which the amount was retained. Such amounts shall be allocated on
the basis of the formula under subsection (d)(1).'.
(b) EFFECTIVE DATE- Any assistance made available under section 213(d)(4)
of the Housing and Community Development Act of 1974 before October 1,
1990, or pursuant to a commitment for such assistance entered into before
such date, shall be governed by the provisions of section 213(d)(4) as
such section existed before the date of the enactment of this Act.
(c) INDIAN HOUSING- In accordance with section 201(b)(2) of the United
States Housing Act of 1937, the amendment made by subsection (a) and the
provisions of subsection (b) of this section shall also apply to public
housing developed or operated pursuant to a contract between the Secretary
of Housing and Urban Development and an Indian housing authority.

65e73dd330ff20288799654b5068b7508434432d3a84e018a9682c39445f56d9

ASSISTANCE.
(a) SPECIAL PURPOSE GRANTS- Section 107(a) of the Housing and Community
Development Act of 1974 is amended--
(1) by striking `in a special discretionary fund' in the first sentence; and
(2) by striking all that follows the period at the end of the second
sentence.
(b) AUTHORIZED USES- Section 107(b) of the Housing and Community Development
Act of 1974 is amended--
(1) by striking paragraphs (1) and (3);
(2) by striking the period at the end of paragraph (5) and inserting
a semicolon;
(3) by redesignating paragraphs (2) and (5) (as amended) as paragraphs
(1) and (2), respectively; and
(4) by inserting after paragraph (2) (as so redesignated) the following
new paragraph:
`(3) to historically Black colleges; and'; and
(5) in paragraph (4)--
(A) by striking `and' after the third semicolon and all that follows through
`and' after the fourth semicolon; and
(B) by striking `and' at the end and inserting the following: `for purposes
of this paragraph the term `technical assistance' means the facilitating of
skills and knowledge in planning, developing, and administering activities
under this title in entities that may need but do not possess such skills
and knowledge, and includes assessing programs and activities under this
title; except that any recipient of a grant under this paragraph that
provides technical assistance pursuant to this paragraph shall provide
for the notification of the availability of such assistance and shall have
specific criteria for selection of recipients of such assistance that are
published and publicly available.'.
(c) FUNDING CRITERIA- Section 107 of the Housing and Community Development
Act of 1974 is amended by adding at the end the following new subsection:
`(f) Any grant made under this section shall be made pursuant to criteria
for selection of recipients of such grants that the Secretary shall by
regulation establish and which the Secretary shall publish together with
any notification of availability of amounts under this section.'.
(d) APPLICABILITY-
(1) IN GENERAL- Except as provided in this paragraph and paragraph (2),
the amendments made by this section shall apply with respect to any grants
made under section 107 of the Housing and Community Development Act of
1974 on or after the date of the enactment of this Act, except a grant
made under the third sentence of section 107(a) of Housing and Community
Development Act of 1974, as such sentence existed immediately before such
date, and grants for specific activities (referred to in House Report Number
101-297) pursuant to the amount appropriated for use under section 107 by
the enactment of the bill, H.R. 2916, of the One Hundred First Congress.
(2) PRIOR GRANTS- Any grant made under section 107 of the Housing and
Community Development Act of 1974 before the date of the enactment of this
Act or pursuant to a grant award notification made before such date shall
be governed by the provisions of such section as it existed immediately
before the date of the enactment of this Act.
(e) CONFORMING AMENDMENT- The section heading of section 107 of the Housing
and Community Development Act of 1974 is amended to read as follows:
`SPECIAL PURPOSE GRANTS'.

b8e70dcf23168e4a4b50611fa089f72cec6704a97617d870bf74615fc089fae9

Section 7 of the Department of Housing and Urban Development Act is amended
by adding at the end the following new subsection:
`(q)(1) Any waiver of regulations of the Department shall be in writing
and shall specify the grounds for approving the waiver.
`(2) The Secretary may delegate authority to approve a waiver of a regulation
only to an individual of Assistant Secretary rank or equivalent rank,
who is authorized to issue the regulation to be waived.
`(3) The Secretary shall notify the public of all waivers of regulations
approved by the Department. The notification shall be included in a
notice in the Federal Register published not less than quarterly. Each
notification shall cover the period beginning on the day after the last
date covered by the prior notification, and shall--
`(A) identify the project, activity, or undertaking involved;
`(B) describe the nature of the requirement that has been waived and
specify the provision involved;
`(C) specify the name and title of the official who granted the waiver
request;
`(D) include a brief description of the grounds for approval of the
waiver; and
`(E) state how more information about the waiver and a copy of the request
and the approval may be obtained.
`(4) Any waiver of a provision of a handbook of the Department shall--
`(A) be in writing;
`(B) specify the grounds for approving the waiver; and
`(C) be maintained in indexed form and made available for public inspection
for not less than the 3-year period beginning on the date of the waiver.'.

fa6410e0b7f8c4074c619c92300f29a1056274aa92b2a0f588fc3f3168b5297e

(a) IN GENERAL- Title V of the National Housing Act is amended by adding
at the end the following new section:
`CIVIL MONEY PENALTIES AGAINST MORTGAGEES AND LENDERS
`SEC. 536. (a) IN GENERAL-
`(1) AUTHORITY- Whenever a mortgagee approved under this Act, or a lender
holding a contract of insurance under title I of this Act, knowingly and
materially violates any of the provisions of subsection (b), the Secretary
may impose a civil money penalty on the mortgagee or lender in accordance
with the provisions of this section. The penalty shall be in addition to any
other available civil remedy or any available criminal penalty, and may be
imposed whether or not the Secretary imposes other administrative sanctions.
`(2) AMOUNT OF PENALTY- The amount of the penalty, as determined by the
Secretary, may not exceed $5,000 for each violation, except that the maximum
penalty for all violations by any particular mortgagee or lender during any
1-year period shall not exceed $1,000,000. Each violation of a provision
of subsection (b)(1) shall constitute a separate violation with respect to
each mortgage or loan application. In the case of a continuing violation, as
determined by the Secretary, each day shall constitute a separate violation.
`(b) VIOLATIONS FOR WHICH A PENALTY MAY BE IMPOSED-
`(1) VIOLATIONS- The Secretary may impose a civil money penalty under
subsection (a) for any knowing and material violation by a mortgagee or
lender, as follows:
`(A) Except where expressly permitted by statute, regulation, or contract
approved by the Secretary, transfer of a mortgage insured under this Act
to a mortgagee not approved by the Secretary, or transfer of a loan to a
transferee that is not holding a contract of insurance under title I of
this Act.
`(B) Failure of a nonsupervised mortgagee, as defined by the Secretary--
`(i) to segregate all escrow funds received from a mortgagor for ground
rents, taxes, assessments, and insurance premiums; or
`(ii) to deposit these funds in a special account with a depository
institution whose accounts are insured by the Federal Deposit Insurance
Corporation through the Bank Insurance Fund for banks and through the
Savings Association Insurance Fund for savings associations, or by the
National Credit Union Administration.
`(C) Use of escrow funds for any purpose other than that for which they
were received.
`(D) Submission to the Secretary of information that was false, in connection
with any mortgage insured under this Act, or any loan that is covered by
a contract of insurance under title I of this Act.
`(E) With respect to an officer, director, principal, or employee--
`(i) hiring such an individual whose duties will involve, directly or
indirectly, programs administered by the Secretary, while that person was
under suspension or withdrawal by the Secretary; or
`(ii) retaining in employment such an individual who continues to be
involved, directly or indirectly, in programs administered by the Secretary,
while that person was under suspension or withdrawal by the Secretary.
`(F) Falsely certifying to the Secretary or submitting to the Secretary
a false certification by another person or entity.
`(G) Failure to comply with an agreement, certification, or condition of
approval set forth on, or applicable to--
`(i) the application of a mortgagee or lender for approval by the
Secretary; or
`(ii) the notification by a mortgagee or lender to the Secretary concerning
establishment of a branch office.
`(H) Violation of any provisions of title I, II, or X (as such title
existed immediately before the effective date of the Department of Housing
and Urban Development Reform Act of 1989) of this Act or any implementing
regulation or handbook that is issued under this Act.
`(2) NOTIFICATION TO ATTORNEY GENERAL- Before taking action to impose a
civil money penalty for a violation under paragraph (1)(D) or paragraph
(1)(F), the Secretary shall inform the Attorney General of the United States.
`(c) AGENCY PROCEDURES-
`(1) ESTABLISHMENT- The Secretary shall establish standards and procedures
governing the imposition of civil money penalties under subsection
(a). These standards and procedures--
`(A) shall provide for the Secretary to make the determination to impose
the penalty or to use an administrative entity (such as the Mortgagee Review
Board, established pursuant to section 202(c) of the National Housing Act)
to make the determination;
`(B) shall provide for the imposition of a penalty only after the mortgagee
or lender has been given an opportunity for a hearing on the record; and
`(C) may provide for review by the Secretary of any determination or order,
or interlocutory ruling, arising from a hearing.
`(2) FINAL ORDERS- If no hearing is requested within 15 days of receipt
of the notice of opportunity for hearing, the imposition of the penalty
shall constitute a final and unappealable determination. If the Secretary
reviews the determination or order, the Secretary may affirm, modify, or
reverse that determination or order. If the Secretary does not review the
determination or order within 90 days of the issuance of the determination
or order, the determination or order shall be final.
`(3) FACTORS IN DETERMINING AMOUNT OF PENALTY- In determining the amount of
a penalty under subsection (a), consideration shall be given to such factors
as the gravity of the offense, any history of prior offenses (including those
before enactment of this section), ability to pay the penalty, injury to the
public, benefits received, deterrence of future violations, and such other
factors as the Secretary may determine in regulations to be appropriate.
`(4) REVIEWABILITY OF IMPOSITION OF PENALTY- The Secretary's determination
or order imposing a penalty under subsection (a) shall not be subject to
review, except as provided in subsection (d).
`(d) JUDICIAL REVIEW OF AGENCY DETERMINATION-
`(1) IN GENERAL- After exhausting all administrative remedies established
by the Secretary under subsection (c)(1), a mortgagee or lender against
whom the Secretary has imposed a civil money penalty under subsection (a)
may obtain a review of the penalty and such ancillary issues (such as any
administrative sanctions under 24 C.F.R. part 25) as may be addressed in
the notice of determination to impose a penalty under subsection (c)(1)(A)
in the appropriate court of appeals of the United States, by filing in
such court, within 20 days after the entry of such order or determination,
a written petition praying that the Secretary's determination or order be
modified or be set aside in whole or in part.
`(2) OBJECTIONS NOT RAISED IN HEARING- The court shall not consider any
objection that was not raised in the hearing conducted pursuant to subsection
(c)(1) unless a demonstration is made of extraordinary circumstances
causing the failure to raise the objection. If any party demonstrates to
the satisfaction of the court that additional evidence not presented at
the hearing is material and that there were reasonable grounds for the
failure to present such evidence at the hearing, the court shall remand
the matter to the Secretary for consideration of the additional evidence.
`(3) SCOPE OF REVIEW- The decisions, findings, and determinations of the
Secretary shall be reviewed pursuant to section 706 of title 5, United
States Code.
`(4) ORDER TO PAY PENALTY- Notwithstanding any other provision of law,
in any such review, the court shall have the power to order payment of
the penalty imposed by the Secretary.
`(e) ACTION TO COLLECT PENALTY- If any mortgagee or lender fails to
comply with the Secretary's determination or order imposing a civil
money penalty under subsection (a), after the determination or order is
no longer subject to review as provided by subsections (c)(1) and (d),
the Secretary may request the Attorney General of the United States to
bring an action in an appropriate United States district court to obtain a
monetary judgment against the mortgagee or lender and such other relief as
may be available. The monetary judgment may, in the court's discretion,
include the attorneys fees and other expenses incurred by the United
States in connection with the action. In an action under this subsection,
the validity and appropriateness of the Secretary's determination or order
imposing the penalty shall not be subject to review.
`(f) SETTLEMENT BY SECRETARY- The Secretary may compromise, modify, or
remit any civil money penalty which may be, or has been, imposed under
this section.
`(g) DEFINITION OF KNOWINGLY- The term `knowingly' means having actual
knowledge of or acting with deliberate ignorance of or reckless disregard
for the prohibitions under this section.
`(h) REGULATIONS- The Secretary shall issue such regulations as the
Secretary deems appropriate to implement this section.
`(i) DEPOSIT OF PENALTIES IN INSURANCE FUNDS- Notwithstanding any other
provision of law, all civil money penalties collected under this section
shall be deposited in the appropriate insurance fund or funds established
under this Act, as determined by the Secretary.'.
(b) APPLICABILITY- The amendment made by subsection (a) shall apply only
with respect to--
(1) violations referred to in the amendment that occur on or after the
effective date of this section; and
(2) in the case of a continuing violation (as determined by the Secretary
of Housing and Urban Development), any portion of a violation referred to
in the amendment that occurs on or after such date.

1c0884ec1fb8c3149c89752746a15f01ebaf67ff6f7317b8e4d4543d898d5fc0

(a) IN GENERAL- Title V of the National Housing Act (as amended by the
preceding provisions of this Act) is further amended by adding at the end
the following new section:
`CIVIL MONEY PENALTIES AGAINST MULTIFAMILY MORTGAGORS
`SEC. 537. (a) IN GENERAL- The penalties set forth in this section shall be
in addition to any other available civil remedy or any available criminal
penalty, and may be imposed whether or not the Secretary imposes other
administrative sanctions. The Secretary may not impose penalties under
this section for violations a material cause of which are the failure of
the Department, an agent of the Department, or a public housing agency to
comply with existing agreements.
`(b) PENALTY FOR VIOLATION OF AGREEMENT AS CONDITION OF TRANSFER OF PHYSICAL
ASSETS, FLEXIBLE SUBSIDY LOAN, CAPITAL IMPROVEMENT LOAN, MODIFICATION OF
MORTGAGE TERMS, OR WORKOUT AGREEMENT-
`(1) AUTHORITY- Whenever a mortgagor of property that includes 5 or more
living units and that has a mortgage insured, co-insured, or held pursuant to
this Act, who has agreed in writing, as a condition of a transfer of physical
assets, a flexible subsidy loan, a capital improvement loan, a modification
of the mortgage terms, or a workout agreement, to use nonproject income
to make cash contributions for payments due under the note and mortgage,
for payments to the reserve for replacements, to restore the project to
good physical condition, or to pay other project liabilities, knowingly
and materially fails to comply with any of these commitments, the Secretary
may impose a civil money penalty on that mortgagor in accordance with the
provisions of this section.
`(2) AMOUNT OF PENALTY- The amount of the penalty, as determined by the
Secretary, for a violation of this subsection may not exceed the amount
of the loss the Secretary would experience at a foreclosure sale, or a
sale after foreclosure, of the property involved.
`(c) VIOLATIONS OF REGULATORY AGREEMENT FOR WHICH PENALTY MAY BE IMPOSED-
`(1) VIOLATIONS- The Secretary may also impose a civil money penalty under
this section on any mortgagor of property that includes 5 or more living
units and that has a mortgage insured, co-insured, or held pursuant to
this Act for any knowing and material violation of the regulatory agreement
executed by the mortgagor, as follows:
`(A) Conveyance, transfer, or encumbrance of any of the mortgaged property,
or permitting the conveyance, transfer, or encumbrance of such property,
without the prior written approval of the Secretary.
`(B) Assignment, transfer, disposition, or encumbrance of any personal
property of the project, including rents, or paying out any funds, except
for reasonable operating expenses and necessary repairs, without the prior
written approval of the Secretary.
`(C) Conveyance, assignment, or transfer of any beneficial interest in
any trust holding title to the property, or the interest of any general
partner in a partnership owning the property, or any right to manage or
receive the rents and profits from the mortgaged property, without the
prior written approval of the Secretary.
`(D) Remodeling, adding to, reconstructing, or demolishing any part of
the mortgaged property or subtracting from any real or personal property
of the project, without the prior written approval of the Secretary.
`(E) Requiring, as a condition of the occupancy or leasing of any unit in
the project, any consideration or deposit other than the prepayment of the
first month's rent, plus a security deposit in an amount not in excess of
1 month's rent, to guarantee the performance of the covenants of the lease.
`(F) Not holding any funds collected as security deposits separate and
apart from all other funds of the project in a trust account, the amount
of which at all times equals or exceeds the aggregate of all outstanding
obligations under the account.
`(G) Payment for services, supplies, or materials which exceeds $500
and substantially exceeds the amount ordinarily paid for such services,
supplies, or materials in the area where the services are rendered or the
supplies or materials furnished.
`(H) Failure to maintain at any time the mortgaged property, equipment,
buildings, plans, offices, apparatus, devices, books, contracts, records,
documents, and other related papers (including failure to keep copies
of all written contracts or other instruments which affect the mortgaged
property) in reasonable condition for proper audit and for examination and
inspection at any reasonable time by the Secretary or any duly authorized
agents of the Secretary.
`(I) Failure to maintain the books and accounts of the operations of the
mortgaged property and of the project in accordance with requirements
prescribed by the Secretary.
`(J) Failure to furnish the Secretary, by the expiration of the 60-day period
beginning on the 1st day after the completion of each fiscal year, with a
complete annual financial report based upon an examination of the books and
records of the mortgagor prepared and certified to by an independent public
accountant or a certified public accountant and certified to by an officer
of the mortgagor, unless the Secretary has approved an extension of the
60-day period in writing. The Secretary shall approve an extension where
the mortgagor demonstrates that failure to comply with this subparagraph
is due to events beyond the control of the mortgagor.
`(K) At the request of the Secretary, the agents of the Secretary, the
employees of the Secretary, or the attorneys of the Secretary, failure to
furnish monthly occupancy reports or failure to provide specific answers
to questions upon which information is sought relative to income, assets,
liabilities, contracts, the operation and condition of the property,
or the status of the mortgage.
`(L) Failure to make promptly all payments due under the note and mortgage,
including mortgage insurance premiums, tax and insurance escrow payments,
and payments to the reserve for replacements when there is adequate project
income available to make such payments.
The pay out of surplus cash, as defined by and provided for in the regulatory
agreement, shall not constitute a violation of such agreement.
`(2) AMOUNT OF PENALTY- A penalty imposed for a violation under this
subsection, as determined by the Secretary, may not exceed $25,000.
`(d) AGENCY PROCEDURES-
`(1) ESTABLISHMENT- The Secretary shall establish standards and procedures
governing the imposition of civil money penalties under subsections (b)
and (c). These standards and procedures--
`(A) shall provide for the Secretary or other department official (such as
the Assistant Secretary for Housing) to make the determination to impose
a penalty;
`(B) shall provide for the imposition of a penalty only after the mortgagor
has been given an opportunity for a hearing on the record; and
`(C) may provide for review by the Secretary of any determination or order,
or interlocutory ruling, arising from a hearing.
`(2) FINAL ORDERS- If no hearing is requested within 15 days of receipt
of the notice of opportunity for hearing, the imposition of the penalty
shall constitute a final and unappealable determination. If the Secretary
reviews the determination or order, the Secretary may affirm, modify, or
reverse that determination or order. If the Secretary does not review the
determination or order within 90 days of the issuance of the determination
or order, the determination or order shall be final.
`(3) FACTORS IN DETERMINING AMOUNT OF PENALTY- In determining the amount
of a penalty under subsection (b) or (c), consideration shall be given to
such factors as the gravity of the offense, any history of prior offenses
(including offenses occurring before enactment of this section), ability
to pay the penalty, injury to the tenants, injury to the public, benefits
received, deterrence of future violations, and such other factors as the
Secretary may determine in regulations to be appropriate.
`(4) REVIEWABILITY OF IMPOSITION OF PENALTY- The Secretary's determination or
order imposing a penalty under subsection (b) or (c) shall not be subject
to review, except as provided in subsection (e).
`(e) JUDICIAL REVIEW OF AGENCY DETERMINATION-
`(1) IN GENERAL- After exhausting all administrative remedies established
by the Secretary under subsection (d)(1), a mortgagor against whom the
Secretary has imposed a civil money penalty under subsection (b) or
(c) may obtain a review of the penalty and such ancillary issues as may
be addressed in the notice of determination to impose a penalty under
subsection (d)(1)(A) in the appropriate court of appeals of the United
States, by filing in such court, within 20 days after the entry of such
order or determination, a written petition praying that the Secretary's
order or determination be modified or be set aside in whole or in part.
`(2) OBJECTIONS NOT RAISED IN HEARING- The court shall not consider any
objection that was not raised in the hearing conducted pursuant to subsection
(d)(1) unless a demonstration is made of extraordinary circumstances
causing the failure to raise the objection. If any party demonstrates to
the satisfaction of the court that additional evidence not presented at
such hearing is material and that there were reasonable grounds for the
failure to present such evidence at the hearing, the court shall remand
the matter to the Secretary for consideration of such additional evidence.
`(3) SCOPE OF REVIEW- The decisions, findings, and determinations of the
Secretary shall be reviewed pursuant to section 706 of title 5, United
States Code.
`(4) ORDER TO PAY PENALTY- Notwithstanding any other provision of law,
in any such review, the court shall have the power to order payment of
the penalty imposed by the Secretary.
`(f) ACTION TO COLLECT PENALTY- If a mortgagor fails to comply with
the Secretary's determination or order imposing a civil money penalty
under subsection (b) or (c), after the determination or order is no
longer subject to review as provided by subsections (d)(1) and (e),
the Secretary may request the Attorney General of the United States to
bring an action in an appropriate United States district court to obtain
a monetary judgment against the mortgagor and such other relief as may
be available. The monetary judgment may, in the court's discretion,
include the attorneys fees and other expenses incurred by the United
States in connection with the action. In an action under this subsection,
the validity and appropriateness of the Secretary's determination or order
imposing the penalty shall not be subject to review.
`(g) SETTLEMENT BY SECRETARY- The Secretary may compromise, modify, or
remit any civil money penalty which may be, or has been, imposed under
this section.
`(h) DEFINITION OF KNOWINGLY- The term `knowingly' means having actual
knowledge of or acting with deliberate ignorance of or reckless disregard
for the prohibitions under this section.
`(i) REGULATIONS- The Secretary shall issue such regulations as the
Secretary deems appropriate to implement this section.
`(j) DEPOSIT OF PENALTIES IN INSURANCE FUNDS- Notwithstanding any other
provision of law, all civil money penalties collected under this section
shall be deposited in the fund established under section 201(j) of the
Housing and Community Development Amendments of 1978.'.
(b) APPLICABILITY- The amendment made by subsection (a) shall apply only
with respect to violations referred to in the amendment that occur on or
after the effective date of this section.

defc06c69011ac9ac5092f3e26cc1e0b40cb648fa91a34f057750178202da311

(a) IN GENERAL- Title II of the Housing Act of 1959 is amended by inserting
after section 202 the following new section:
`CIVIL MONEY PENALTIES AGAINST SECTION 202 MORTGAGORS
`SEC. 202a. (a) IN GENERAL- The penalties set forth in this section shall
be in addition to any other available civil remedy or criminal penalty, and
may be imposed whether or not the Secretary imposes other administrative
sanctions. The Secretary may not impose penalties under this section for
violations a material cause of which are the failure of the Department,
an agent of the Department, or a public housing agency to comply with
existing agreements.
`(b) PENALTY FOR VIOLATION OF AGREEMENT AS CONDITION OF TRANSFER OF PHYSICAL
ASSETS, FLEXIBLE SUBSIDY LOAN, CAPITAL IMPROVEMENT LOAN, MODIFICATION OF
MORTGAGE TERMS, OR WORKOUT AGREEMENT-
`(1) IN GENERAL- Whenever a mortgagor of property that includes 5 or more
living units and that has a mortgage held pursuant to section 202, who
has agreed in writing, as a condition of a transfer of physical assets,
a flexible subsidy loan, a capital improvement loan, a modification of
the mortgage terms, or a workout agreement, to use nonproject income to
make cash contributions for payments due under the note and mortgage, for
payments to the reserve for replacements, to restore the project to good
physical condition, or to pay other project liabilities, knowingly and
materially fails to comply with any of these commitments, the Secretary
may impose a civil money penalty on the mortgagor in accordance with the
provisions of this section.
`(2) AMOUNT- The amount of the penalty, as determined by the Secretary,
for a violation of this subsection may not exceed the amount of the loss
the Secretary would incur at a foreclosure sale, or sale after foreclosure,
with respect to the property involved.
`(c) VIOLATIONS OF REGULATORY AGREEMENT-
`(1) IN GENERAL- The Secretary may also impose a civil money penalty on
a mortgagor or property that includes 5 or more living units and that
has a mortgage held pursuant to section 202 for any knowing and material
violation of the regulatory agreement executed by the mortgagor, as follows:
`(A) Conveyance, transfer, or encumbrance of any of the mortgaged property,
or permitting the conveyance, transfer, or encumbrance of such property,
without the prior written approval of the Secretary.
`(B) Assignment, transfer, disposition, or encumbrance of any personal
property of the project, including rents, or paying out any funds, except
for reasonable operating expenses and necessary repairs, without the prior
written approval of the Secretary.
`(C) Conveyance, assignment, or transfer of any beneficial interest in
any trust holding title to the property, or the interest of any general
partner in a partnership owning the property, or any right to manage or
receive the rents and profits from the mortgaged property, without the
prior written approval of the Secretary.
`(D) Remodeling, adding to, reconstructing, or demolishing any part of
the mortgaged property or subtracting from any real or personal property
of the project, without the prior written approval of the Secretary.
`(E) Requiring, as a condition of the occupancy or leasing of any unit in
the project, any consideration or deposit other than the prepayment of the
first month's rent, plus a security deposit in an amount not in excess of
1 month's rent, to guarantee the performance of the covenants of the lease.
`(F) Not holding any funds collected as security deposits separate and
apart from all other funds of the project in a trust account, the amount
of which at all times equals or exceeds the aggregate of all outstanding
obligations under the account.
`(G) Payment for services, supplies, or materials which exceeds $500
and substantially exceeds the amount ordinarily paid for such services,
supplies, or materials in the area where the services are rendered or the
supplies or materials furnished.
`(H) Failure to maintain at any time the mortgaged property, equipment,
buildings, plans, offices, apparatus, devices, books, contracts, records,
documents, and other related papers (including failure to keep copies
of all written contracts or other instruments which affect the mortgaged
property) in reasonable condition for proper audit and for examination and
inspection at any reasonable time by the Secretary or any duly authorized
agents of the Secretary.
`(I) Failure to maintain the books and accounts of the operations of the
mortgaged property and of the project in accordance with requirements
prescribed by the Secretary.
`(J) Failure to furnish the Secretary, by the expiration of the 60-day
period beginning on the 1st day after the completion of each fiscal year,
with a complete annual financial report based upon an examination of the
books and records of the mortgagor prepared in accordance with requirements
prescribed by the Secretary, and prepared and certified to by an independent
public accountant or a certified public accountant and certified to by an
officer of the mortgagor, unless the Secretary has approved an extension of
the 60-day period in writing. The Secretary shall approve an extension where
the mortgagor demonstrates that failure to comply with this subparagraph
is due to events beyond the control of the mortgagor.
`(K) At the request of the Secretary, the agents of the Secretary, the
employees of the Secretary, or the attorneys of the Secretary, failure to
furnish monthly occupancy reports or failure to provide specific answers
to questions upon which information is sought relative to income, assets,
liabilities, contracts, the operation and condition of the property,
or the status of the mortgage.
`(L) Failure to make promptly all payments due under the note and mortgage,
including tax and insurance escrow payments, and payments to the reserve
for replacements when there is adequate project income available to make
such payments.
`(M) Amending the articles of incorporation or bylaws, other than as
permitted under the terms of the articles of incorporation as approved by
the Secretary, without the prior written approval of the Secretary.
`(2) AMOUNT OF PENALTY- A penalty imposed for a violation under this
subsection, as determined by the Secretary, may not exceed $25,000 for a
violation of any of the subparagraphs of paragraph (1).
`(d) AGENCY PROCEDURES-
`(1) ESTABLISHMENT- The Secretary shall establish standards and procedures
governing the imposition of civil money penalties under subsections (b)
and (c). These standards and procedures--
`(A) shall provide for the Secretary or other department official (such as
the Assistant Secretary for Housing) to make the determination to impose
a penalty;
`(B) shall provide for the imposition of a penalty only after the mortgagor
has been given an opportunity for a hearing on the record; and
`(C) may provide for review by the Secretary of any determination or order,
or interlocutory ruling, arising from a hearing.
`(2) FINAL ORDERS- If no hearing is requested within 15 days of receipt
of the notice of opportunity for hearing, the imposition of the penalty
shall constitute a final and unappealable determination. If the Secretary
reviews the determination or order, the Secretary may affirm, modify, or
reverse that determination or order. If the Secretary does not review the
determination or order within 90 days of the issuance of the determination
or order, the determination or order shall be final.
`(3) FACTORS IN DETERMINING AMOUNT OF PENALTY- In determining the amount
of a penalty under subsection (b) or (c), consideration shall be given to
such factors as the gravity of the offense, any history of prior offenses
(including offenses occurring before enactment of this section), ability
to pay the penalty, injury to the tenants, injury to the public, benefits
received, deterrence of future violations, and such other factors as the
Secretary may determine in regulations to be appropriate.
`(4) REVIEWABILITY OF IMPOSITION OF PENALTY- The Secretary's determination or
order imposing a penalty under subsection (b) or (c) shall not be subject
to review, except as provided in subsection (e).
`(e)JUDICIALREVIEWOFAGENCYDETERMINATION-
`(1) IN GENERAL- After exhausting all administrative remedies established
by the Secretary under subsection (d)(1), a mortgagor against whom the
Secretary has imposed a civil money penalty under subsection (b) or
(c) may obtain a review of the penalty and such ancillary issues as may
be addressed in the notice of determination to impose a penalty under
subsection (d)(1)(A) in the appropriate court of appeals of the United
States, by filing in such court, within 20 days after the entry of such
order or determination, a written petition praying that the Secretary's
order or determination be modified or be set aside in whole or in part.
`(2) OBJECTIONS NOT RAISED IN HEARING- The court shall not consider any
objection that was not raised in the hearing conducted pursuant to subsection
(d)(1) unless a demonstration is made of extraordinary circumstances
causing the failure to raise the objection. If any party demonstrates to
the satisfaction of the court that additional evidence not presented at
such hearing is material and that there were reasonable grounds for the
failure to present such evidence at the hearing, the court shall remand
the matter to the Secretary for consideration of such additional evidence.
`(3) SCOPE OF REVIEW- The decisions, findings, and determinations of the
Secretary shall be reviewed pursuant to section 706 of title 5, United
States Code.
`(4) ORDER TO PAY PENALTY- Notwithstanding any other provision of law,
in any such review, the court shall have the power to order payment of
the penalty imposed by the Secretary.
`(f) ACTION TO COLLECT PENALTY- If a mortgagor fails to comply with
the Secretary's determination or order imposing a civil money penalty
under subsection (b) or (c), after the determination or order is no
longer subject to review as provided by subsections (d)(1) and (e),
the Secretary may request the Attorney General of the United States to
bring an action in an appropriate United States district court to obtain
a monetary judgment against the mortgagor and such other relief as may
be available. The monetary judgment may, in the court's discretion,
include the attorneys fees and other expenses incurred by the United
States in connection with the action. In an action under this subsection,
the validity and appropriateness of the Secretary's determination or order
imposing the penalty shall not be subject to review.
`(g) SETTLEMENT BY SECRETARY- The Secretary may compromise, modify, or
remit any civil money penalty which may be, or has been, imposed under
this section.
`(h) DEFINITION OF KNOWINGLY- The term `knowingly' means having actual
knowledge of or acting with deliberate ignorance of or reckless disregard
for the prohibitions under this section.
`(i) REGULATIONS- The Secretary shall issue such regulations as the
Secretary deems appropriate to implement this section.
`(j) DEPOSIT OF PENALTIES IN INSURANCE FUNDS- Notwithstanding any other
provision of law, all civil money penalties collected under this section
shall be deposited in the fund established under section 201(j) of the
Housing and Community Development Amendments of 1978.'.
(b) APPLICABILITY- The amendment made by subsection (a) shall apply only
with respect to violations referred to in the amendment that occur on or
after the effective date of this section.
(c) CONFORMING AMENDMENT- Section 201(j)(2) of the Housing and Community
Development Amendments of 1978 is amended--
(1) by striking `and' before `(D)'; and
(2) by inserting before the period at the end the following: `, and (E)
any amount received by the Secretary pursuant to section 537 of the National
Housing Act and section 202a of the Housing Act of 1959'.

cf8c53d28f7c7afc9e07230a027aa6ce8547b4e49ebc383d150e2984bf08f511

(a) IN GENERAL- Title III of the National Housing Act is amended by adding
at the end the following new section:
`CIVIL MONEY PENALTIES AGAINST ISSUERS
`SEC. 317. (a) IN GENERAL-
`(1) AUTHORITY- Whenever an issuer or custodian approved under section
306(g) knowingly and materially violates any provisions of subsection (b),
the Secretary of Housing and Urban Development may impose a civil money
penalty on the issuer or the custodian in accordance with the provisions
of this section. The penalty shall be in addition to any other available
civil remedy or any available criminal penalty and may be imposed whether
or not the Secretary imposes other administrative sanctions.
`(2) AMOUNT OF PENALTY- The amount of the penalty, as determined by the
Secretary, may not exceed $5,000 for each violation, except that the maximum
penalty for all violations by a particular issuer or custodian during any
one-year period shall not exceed $1,000,000. Each violation of a provision
of subsection (b)(1) shall constitute a separate violation with respect
to each pool of mortgages. In the case of a continuing violation, as
determined by the Secretary, each day shall constitute a separate violation.
`(b) VIOLATIONS FOR WHICH A PENALTY MAY BE IMPOSED-
`(1) VIOLATIONS- The violations by an issuer or a custodian for which
the Secretary may impose a civil money penalty under subsection (a) are
the following:
`(A) Failure to make timely payments of principal and interest to holders
of securities guaranteed under section 306(g).
`(B) Failure to segregate cash flow from pooled mortgages or to deposit
either principal and interest funds or escrow funds into special accounts
with a depository institution whose accounts are insured by the National
Credit Union Administration or by the Federal Deposit Insurance Corporation
through the Bank Insurance Fund for banks or through the Savings Association
Insurance Fund for savings associations.
`(C) Use of escrow funds for any purpose other than that for which they
were received.
`(D) Transfer of servicing for a pool of mortgages to an issuer not approved
under this title, unless expressly permitted by statute, regulation,
or contract approved by the Secretary.
`(E) Failure to maintain a minimum net worth in accordance with requirements
prescribed by the Association;
`(F) Failure to promptly notify the Association in writing of any changes
that materially affect the business status of an issuer.
`(G) Submission to the Association of false information in connection with
any securities guaranteed, or mortgages pooled, under section 306(g).
`(H) Hiring, or retaining in employment, an officer, director, principal, or
employee whose duties involve, directly or indirectly, programs administered
by the Association while such person was under suspension or debarment by
the Secretary.
`(I) Submission to the Association of a false certification either on its
own behalf or on behalf of another person or entity.
`(J) Failure to comply with an agreement, certification, or condition of
approval set forth on, or applicable to, the application for approval as
an issuer of securities under section 306(g).
`(K) Violation of any provisions of this title or any implementing
regulation, handbook, or participant letter issued under authority of
this title.
`(2) NOTIFICATION TO ATTORNEY GENERAL- Before taking action to impose a
civil money penalty for a violation under paragraph (1)(G) or paragraph
(1)(I), the Secretary shall inform the Attorney General of the United States.
`(c) AGENCY PROCEDURES-
`(1) ESTABLISHMENT- The Secretary shall establish standards and procedures
governing the imposition of civil money penalties under subsection (a). The
standards and procedures--
`(A) shall provide for the Secretary to make the determination to impose
the penalty;
`(B) shall provide for the imposition of a penalty only after an issuer
or a custodian has been given notice of, and opportunity for, a hearing
on the record; and
`(C) may provide for review by the Secretary of any determination or order,
or interlocutory ruling, arising from a hearing.
`(2) FINAL ORDERS- If no hearing is requested within 15 days of receipt
of a notice of opportunity for hearing, the imposition of a penalty shall
constitute a final and unappealable determination. If the Secretary reviews
the determination or order, the Secretary may affirm, modify, or reverse that
determination or order. If the Secretary does not review the determination
or order within 90 days of the issuance of the determination or order,
the determination or order shall be final.
`(3) FACTORS IN DETERMINING AMOUNT OF PENALTY- In determining the amount of a
penalty under subsection (a), consideration shall be given to such factors as
the gravity of the offense, any history of prior offenses (including offenses
occurring before enactment of this section), ability to pay the penalty,
injury to the public, benefits received, deterrence of future violations,
and such other factors as the Secretary may determine by regulations.
`(4) REVIEWABILITY OF IMPOSITION OF PENALTY- The Secretary's determination
or order imposing a penalty under subsection (a) shall not be subject to
review, except as provided in subsection (d).
`(d) JUDICIAL REVIEW OF AGENCY DETERMINATION-
`(1) IN GENERAL- After exhausting all administrative remedies established
by the Secretary under subsection (c)(1), an issuer or a custodian against
which the Secretary has imposed a civil money penalty under subsection
(a) may obtain a review of the penalty and such ancillary issues as may
be addressed in the notice provided under subsection (c)(1)(A) in the
appropriate court of appeals of the United States, by filing in such court,
within 20 days after the entry of such order or determination, a written
petition praying that the Secretary's order or determination be modified
or be set aside in whole or in part.
`(2) OBJECTIONS NOT RAISED IN HEARING- A court shall not consider
any objection that was not raised in the hearing conducted pursuant
to subsection (c)(1) unless a demonstration is made of extraordinary
circumstances causing the failure to raise the objection. If any party
demonstrates to the satisfaction of the court that additional evidence,
which was not presented at such hearing, is material and that there were
reasonable grounds for the failure to present such evidence at the hearing,
the court shall remand the matter to the Secretary for consideration of
such additional evidence.
`(3) SCOPE OF REVIEW- The decisions, findings, and determinations of the
Secretary shall be reviewed pursuant to section 706 of title 5, United
States Code.
`(4) ORDER TO PAY PENALTY- Notwithstanding any other provision of law,
the court shall have the power in any such review to order payment of the
penalty imposed by the Secretary.
`(e) ACTION TO COLLECT PENALTY- If any issuer or custodian fails to
comply with the Secretary's determination or order imposing a civil
money penalty under subsection (a), after the determination or order is
no longer subject to review as provided by subsections (c)(1) and (d),
the Secretary may request the Attorney General of the United States to
bring an action in an appropriate United States district court to obtain
a monetary judgment against the issuer or custodian and such other relief
as may be available. The monetary judgment may, in the discretion of the
court, include any attorneys fees and other expenses incurred by the United
States in connection with the action. In an action under this subsection,
the validity and appropriateness of the Secretary's determination or order
imposing the penalty shall not be subject to review.
`(f) SETTLEMENT BY SECRETARY- The Secretary may compromise, modify, or
remit any civil money penalty which may be, or has been, imposed under
this section.
`(g) DEFINITION OF KNOWINGLY- The term `knowingly' means having actual
knowledge of or acting with deliberate ignorance of or reckless disregard
for the prohibitions under this section.
`(h) REGULATIONS- The Secretary shall issue such regulations as the
Secretary deems appropriate to implement this section.
`(i) DEPOSIT OF PENALTIES- The Secretary shall deposit all civil money
penalties collected under this section into moneys of the Association
pursuant to section 307.'.
(b) APPLICABILITY- The amendment made by subsection (a) shall apply only
with respect to--
(1) violations referred to in the amendment that occur on or after the
effective date of this section; and
(2) in the case of a continuing violation (as determined by the Secretary
of Housing and Urban Development), any portion of a violation referred to
in the amendment that occurs on or after such date.

eaee2961775d675944f7e3541698bd95025788826a1f1b23bf64616b9ef2ba64

DISCLOSURE ACT.
(a) IN GENERAL- The Interstate Land Sales Full Disclosure Act is amended
by inserting after section 1418 the following new section:
`CIVIL MONEY PENALTIES
`SEC. 1418a. (a) IN GENERAL-
`(1) AUTHORITY- Whenever any person knowingly and materially violates any
of the provisions of this title or any rule, regulation, or order issued
under this title, the Secretary may impose a civil money penalty on such
person in accordance with the provisions of this section. The penalty
shall be in addition to any other available civil remedy or any available
criminal penalty, and may be imposed whether or not the Secretary imposes
other administrative sanctions.
`(2) AMOUNT OF PENALTY- The amount of the penalty, as determined by the
Secretary, may not exceed $1,000 for each violation, except that the maximum
penalty for all violations by a particular person during any 1-year period
shall not exceed $1,000,000. Each violation of this title, or any rule,
regulation, or order issued under this title, shall constitute a separate
violation with respect to each sale or lease or offer to sell or lease. In
the case of a continuing violation, as determined by the Secretary, each
day shall constitute a separate violation.
`(b) AGENCY PROCEDURES-
`(1) ESTABLISHMENT- The Secretary shall establish standards and procedures
governing the imposition of civil money penalties under subsection (a). The
standards and procedures--
`(A) shall provide for the imposition of a penalty only after a person
has been given an opportunity for a hearing on the record; and
`(B) may provide for review by the Secretary of any determination or order,
or interlocutory ruling, arising from a hearing.
`(2) FINAL ORDERS- If no hearing is requested within 15 days of receipt
of the notice of opportunity for hearing, the imposition of the penalty
shall constitute a final and unappealable determination. If the Secretary
reviews the determination or order, the Secretary may affirm, modify, or
reverse that determination or order. If the Secretary does not review the
determination or order within 90 days of the issuance of the determination
or order, the determination or order shall be final.
`(3) FACTORS IN DETERMINING AMOUNT OF PENALTY- In determining the amount
of a penalty under subsection (a), consideration shall be given to such
factors as the gravity of the offense, any history of prior offenses
(including offenses occurring before enactment of this section), ability
to pay the penalty, injury to the public, benefits received, deterrence of
future violations, and such other factors as the Secretary may determine
in regulations to be appropriate.
`(4) REVIEWABILITY OF IMPOSITION OF PENALTY- The Secretary's determination
or order imposing a penalty under subsection (a) shall not be subject to
review, except as provided in subsection (c).
`(c) JUDICIAL REVIEW OF AGENCY DETERMINATION-
`(1) IN GENERAL- After exhausting all administrative remedies established
by the Secretary under subsection (b)(1), a person aggrieved by a final
order of the Secretary assessing a penalty under this section may seek
judicial review pursuant to section 1411.
`(2) ORDER TO PAY PENALTY- Notwithstanding any other provision of law,
in any such review, the court shall have the power to order payment of
the penalty imposed by the Secretary.
`(d) ACTION TO COLLECT PENALTY- If any person fails to comply with the
determination or order of the Secretary imposing a civil money penalty under
subsection (a), after the determination or order is no longer subject to
review as provided by subsections (b) and (c), the Secretary may request the
Attorney General of the United States to bring an action in any appropriate
United States district court to obtain a monetary judgment against the person
and such other relief as may be available. The monetary judgment may, in
the discretion of the court, include any attorneys fees and other expenses
incurred by the United States in connection with the action. In an action
under this subsection, the validity and appropriateness of the Secretary's
determination or order imposing the penalty shall not be subject to review.
`(e) SETTLEMENT BY SECRETARY- The Secretary may compromise, modify, or
remit any civil money penalty which may be, or has been, imposed under
this section.
`(f) DEFINITION OF KNOWINGLY- The term `knowingly' means having actual
knowledge of or acting with deliberate ignorance of or reckless disregard
for the prohibitions under this section.
`(g) REGULATIONS- The Secretary shall issue such regulations as the
Secretary deems appropriate to implement this section.
`(h) USE OF PENALTIES FOR ADMINISTRATION- Civil money penalties collected
under this section shall be paid to the Secretary and, upon approval in
an appropriation Act, may be used by the Secretary to cover all or part
of the cost of rendering services under this title.'.
(b) APPLICABILITY- The amendment made by subsection (a) shall apply only
with respect to--
(1) violations referred to in the amendment that occur on or after the
effective date of this section; and
(2) in the case of a continuing violation (as determined by the Secretary
of Housing and Urban Development), any portion of violation referred to
in the amendment that occurs on or after such date.

a3f8791e0b683213e7b2de79c20067db671f6500f733eb27cfdaebc823bbecfd

The Department of Housing and Urban Development Act, as amended by the
preceding provisions of this Act, is further amended by adding at the end
the following new section:
`REGISTRATION OF CONSULTANTS
`SEC. 13. (a) RECORD OF EXPENDITURES-
`(1) REQUIREMENT TO MAINTAIN- Each person who makes an expenditure to
influence the decision of any officer or employee of the Department,
through communication with such officer or employee, with respect to--
`(A) the award of any financial assistance within the jurisdiction of the
Department, or
`(B) any management action involving a change in the terms and conditions
or status of financial assistance awarded to any person,
shall keep records, as required by this section. The preceding sentence
shall not apply to expenditures incurred in complying with conditions,
requirements, or procedures imposed by the Secretary in connection with any
financial assistance.
`(2) COVERED INFORMATION- Each person referred to in paragraph (1) shall
keep a detailed and exact account of--
`(A) all such expenditures made by or on behalf of such person; and
`(B) the name and address of every person to whom any such expenditure is
made and the date of the expenditure.
`(3) MAINTENANCE OF RECORDS- Each person making such an expenditure shall
obtain a bill, stating the particulars, for every such expenditure, and
shall retain all records required by this section for not less than the
2-year period beginning on the date of the filing of the report required
by subsection (b), which shall include the information under paragraph (2).
`(4) LIMITATION OF FEES- Any person engaged for pay or other consideration
for the purpose of attempting to influence any award or allocation of
financial assistance within the jurisdiction of the Department shall not
seek or receive any fee that is--
`(A) based on the amount of assistance or number of units that may be
provided by the Secretary, or
`(B) contingent on an award of assistance by the Secretary, except where--
`(i) services are provided to a nonprofit entity applying for such award
or allocation of assistance; and
`(ii) professional services related to a project are donated in whole or
in part to a nonprofit entity in the event assistance for a project is
not awarded.
`(b) REPORTS OF EXPENDITURES FILED WITH THE SECRETARY-
`(1) REPORT- Each person making an expenditure for the purposes designated
in subsection (a)(1) shall file with the Secretary, between the 1st and
10th day of each calendar year, a report specifying the total expenditures
made by or on behalf of such person during the year and the information
required by subsection (a)(2)(B).
`(2) REGULAR EMPLOYEES- The requirements of this subsection shall not
apply in the case of a payment of reasonable compensation made to any
regularly employed officer or employee of the person who requests or
receives assistance within the jurisdiction of the Department, or who is
involved in any management action with respect to such assistance.
`(3) MINIMUM DOLLAR REQUIREMENTS- The requirements of this subsection shall
not apply to any person whose total expenditures for purposes described
in subparagraphs (A) and (B) of subsection (a)(1) are less than $10,000
in any calendar year.
`(4) FILING AND RETENTION- A report required by this subsection--
`(A) shall be considered properly filed when deposited in a post office
within the prescribed time, stamped, registered, and addressed to the
Secretary, but if the Secretary does not receive the report, the person
shall promptly file a duplicate report when the Secretary notifies the
person that the original report has not been received; and
`(B) shall be retained by the Secretary for the 2-year period beginning
on the date of filing, shall constitute part of the public records of the
Department, and shall be open to public inspection.
`(5) PUBLICATION OF INFORMATION- The Secretary shall compile all expenditure
information as soon as practicable after the close of the calendar year
with respect to which the information is filed and shall publish it as a
notice in the Federal Register.
`(c) REGISTRATION BY PERSONS ATTEMPTING TO INFLUENCE DEPARTMENT DECISIONS-
`(1) REQUIREMENT AND INFORMATION- Each person receiving payment or any
consideration for the purpose described in subsection (a)(1), shall, not
later than 14 days after being retained for such purpose, register with
the Secretary. The registration shall be in writing and shall include the
name and business address of the registrant, the name and address of the
registrant's employer and of any person or entity in whose interest the
registrant appears or works, and a statement of whether the registrant has
been employed by the Federal Government during the 2-year period ending on
the date of the registration and in what capacity. Each registrant shall,
between the 1st and 10th day of each calendar year, file with the Secretary
a detailed report of all money received and expended by the registrant
during the preceding year in carrying out the work, including information
as to whom money was paid, and for what purposes.
`(2) MINIMUM DOLLAR REQUIREMENT- The requirements of the last sentence of
paragraph (1) shall not apply with respect to any calendar year to any person
whose total compensation for attempting to influence a decision with respect
to assistance within the jurisdiction of the Department or a management
action with respect to such assistance is less than $10,000 in such year.
`(3) PUBLICATION OF INFORMATION- The Secretary shall compile all registration
information as soon as practicable after the close of the calendar year
with respect to which the information is filed and shall publish it annually
as a notice in the Federal Register.
`(d) CIVIL MONEY PENALTIES-
`(1) AUTHORITY- Whenever any person knowingly fails to file a report
required under subsection (b), or any person knowingly fails to register
and file a report required under subsection (c), the Secretary may impose
a civil money penalty on that person in accordance with the provisions of
this subsection. The penalty shall be in addition to any other available
civil remedy or any available criminal penalty, and may be imposed whether
or not the Secretary imposes other administrative sanctions.
`(2) AMOUNT OF PENALTY- The amount of the penalty, as determined by the
Secretary, shall not exceed the greater of--
`(A) $10,000 for each violation; or
`(B) the total amount received for any services performed for any applicant
to which the violation under paragraph (1) relates.
`(3) FACTORS IN DETERMINING AMOUNT OF PENALTY- In determining the amount
of a penalty under this subsection, consideration shall be given to such
factors as the gravity of the offense, any history of prior offenses
(including offenses occurring before enactment of this section), ability
to pay the penalty, injury to the public, benefits received, deterrence of
future violations, and such other factors as the Secretary may determine
in regulations to be appropriate.
`(4) AGENCY PROCEDURES-
`(A) ESTABLISHMENT- The Secretary shall establish standards and procedures
governing the imposition of civil money penalties under paragraph (1). These
standards and procedures shall--
`(i) provide for the Secretary or other department official to make the
determination to impose the penalty or for use of an administrative entity
to make the determination;
`(ii) provide for the imposition of a penalty only after the person has
been given an opportunity for a hearing on the record; and
`(iii) provide for review of any determination or order, or interlocutory
ruling, arising from a hearing.
`(B) FINAL ORDERS- If no hearing is requested within 15 days of receipt
of the notice of opportunity for hearing, the imposition of the penalty
shall constitute a final and unappealable determination. If the Secretary
reviews the determination or order, the Secretary may affirm, modify, or
reverse that determination or order. If the Secretary does not review the
determination or order within 90 days of the issuance of the determination
or order, the determination or order shall be final.
`(C) REVIEWABILITY OF IMPOSITION OF PENALTY- The Secretary's determination
or order imposing a penalty under paragraph (1) shall not be subject to
review, except as provided in paragraph (5).
`(5) JUDICIAL REVIEW OF AGENCY DETERMINATION-
`(A) IN GENERAL- After exhausting all administrative remedies established by
the Secretary under paragraph (4)(A), a person against whom the Secretary
has imposed a civil money penalty under paragraph (1) may obtain a review
of the penalty and such ancillary issues as may be addressed in the
notice of determination to impose a penalty under paragraph (4)(A)(i)
in the appropriate court of appeals of the United States, by filing in
such court, within 20 days after the entry of such order or determination,
a written petition praying that the Secretary's order or determination be
modified or be set aside in whole or in part.
`(B) OBJECTIONS NOT RAISED IN HEARING- The court shall not consider any
objection that was not raised in the hearing conducted pursuant to paragraph
(4)(A) unless a demonstration is made of extraordinary circumstances
causing the failure to raise the objection. If any party demonstrates
to the satisfaction of the court that additional evidence not presented
at the hearing is material and that there are reasonable grounds for the
failure to present such evidence at the hearing, the court shall remand
the matter to the Secretary for consideration of such additional evidence.
`(C) SCOPE OF REVIEW- The decisions, findings, and determinations of the
Secretary shall be reviewed pursuant to section 706 of title 5, United
States Code.
`(D) ORDER TO PAY PENALTY- Notwithstanding any other provision of law,
in any such review, the court shall have the power to order payment of
the penalty imposed by the Secretary.
`(6) ACTION TO COLLECT PENALTY- If any person fails to comply with the
Secretary's determination or order imposing a civil money penalty under
paragraph (1), after the determination or order is no longer subject
to review as provided by paragraphs (4)(A) and (5), the Secretary may
request the Attorney General of the United States to bring an action in
an appropriate United States district court to obtain a monetary judgment
against the person and such other relief as may be available. The monetary
judgment may, in the discretion of the court, include any attorneys' fees
and other expenses incurred by the United States in connection with the
action. In an action under this paragraph, the validity and appropriateness
of the Secretary's determination or order imposing the penalty shall not
be subject to review.
`(7) SETTLEMENT BY SECRETARY- The Secretary may compromise, modify, or
remit any civil money penalty which may be, or has been, imposed under
this subsection.
`(8) DEPOSIT OF PENALTIES- The Secretary shall deposit all civil money
penalties collected under this subsection into miscellaneous receipts of
the Treasury.
`(e) PROHIBITION ON CONSULTING ACTIVITIES-
`(1) IN GENERAL- Whoever is fined under subsection (d) may be prohibited,
for the 3-year period beginning on the date of the imposition of the fine,
from receiving any payment or thing of value for performing any services
(with respect to any application for financial assistance within the
jurisdiction of the Department) for any applicant.
`(2) CRIMINAL PENALTY- Whoever violates the prohibition under paragraph
(1) shall, upon conviction, be guilty of a felony and shall be fined under
title 18, United States Code, or imprisoned not more than 5 years, or both.
`(f) DEFINITIONS- For purposes of this section:
`(1) The term `person' means an individual (including a consultant,
lobbyist, or lawyer), corporation, company, association, authority, firm,
partnership, society, State, local government, or any other organization
or group of people.
`(2) The term `expenditure' includes a payment, distribution, loan,
advance, deposit, gift of money, or anything else of value, and includes
a contract, promise, or agreement, whether or not legally enforceable,
to make an expenditure.
`(3) The term `financial assistance within the jurisdiction of the
Department' includes any contract, grant, loan, cooperative agreement, or
other form of assistance, including the insurance or guarantee of a loan,
mortgage, or pool of mortgages.
`(4) The term `knowingly' means having actual knowledge of or acting with
deliberate ignorance of or reckless disregard for the prohibitions under
this section.
`(5) The term `reasonable compensation' means, with respect to a regularly
employed officer or employee of any person, compensation that is consistent
with the normal compensation for such officer or employee for work that
is not furnished to or not furnished in cooperation with the Department.
`(6) The term `regularly employed' means, with respect to an officer
or employee of a person requesting or receiving assistance within the
jurisdiction of the Department or who is involved in a management action
with respect to such assistance, an officer or employee who is employed
by such person for at least 130 working days within one year immediately
before the date of the submission that initiates departmental consideration
of such person for receipt of such assistance, or the date of initiation
of any management action.
`(g) REGULATIONS- The Secretary shall issue any regulations necessary to
implement this section.
`(h) EFFECTIVE DATE- This section shall take effect on the date specified
in regulations implementing this section that are issued by the Secretary
after notice and public comment. The regulations shall establish standards
that include determinations of what types of activities constitute influence
with respect to the decisions of the Department described in subsection
(a)(1) (A) and (B).'.
Subtitle B--Management Reform

04d44e40e5f5e73f0dbfd779352b5b24e4f24878dc997d2af4eda9488f976df0

Section 4 of the Department of Housing and Urban Development Act is amended
by adding at the end the following new subsection:
`(e) There shall be in the Department a Chief Financial Officer, designated
by the Secretary, who shall--
`(1) serve as the principal advisor to the Secretary on financial management;
`(2) develop and maintain a financial management system for the Department
(including accounting and related transaction systems, internal control
systems, financial reporting systems, credit, and cash and debt management);
`(3) supervise and coordinate all financial management activities and
operations of the Department;
`(4) assist in the financial execution of the Department's budget in
relation to actual expenditures and prepare timely performance reports
for senior managers; and
`(5) issue such policies and directives as may be necessary to carry out
this section.'.

5bce8fad04027f6ceac2a89c81de05e817073affacb26e6700fe9532c833456c

Section 4 of the Department of Housing and Urban Development Act, as
amended by section 121, is further amended by adding at the end the
following new subsection:
`(f) There shall be in the Department a Federal Housing Administration
Comptroller, designated by the Secretary, who shall be responsible for
overseeing the financial operations of the Federal Housing Administration.'.

770d926abd515327f42cede53c951d140a320647d2b02d136768017ef2384b4a

Section 7(o) of the Department of Housing and Urban Development Act is
amended--
(1) in paragraph (2)(A)--
(A) by striking `first period of 15 calendar days of continuous session
of Congress which occurs' in the first sentence and inserting `15-calendar
day period beginning on the day'; and
(B) by striking `of continuous session' in the second sentence;
(2) in paragraph (2)(B), by striking `of continuous session of Congress';
(3) in paragraph (3)--
(A) by striking `first period of 30 calendar days of continuous session
of Congress which occurs' in the first sentence and inserting `expiration
of the 30-calendar day period beginning on the day'; and
(B) by striking all that follows the period at the end of the first
sentence and inserting the following: `Any regulation implementing any
provision of the Department of Housing and Urban Development Reform Act
of 1989 that authorizes the imposition of a civil money penalty may not
become effective until after the expiration of a public comment period of
not less than 60 days.'; and
(4) by striking paragraphs (5) and (6).

0dca94131b448355bcebef7cf2945749c60cb2bf0e9edd63c9a0265a8b96a0f0

Section 7 of the Department of Housing and Urban Development Act, as
amended by section 106 of this Act, is further amended by adding at the
end the following new subsection:
`(r)(1) For the programs listed in paragraph (2), amounts appropriated
under this subsection shall be available to the Secretary for evaluating
and monitoring of all such programs (including all aspects of the public
housing and section 202 programs). The Secretary shall expend amounts made
available under this subsection in accordance with the need and complexity
of evaluating and monitoring each such program.
`(2) The programs subject to this subsection shall be the programs
authorized under--
`(A) titles I and II of the United States Housing Act of 1937;
`(B) section 202 of the Housing Act of 1959;
`(C) section 106 of the Housing and Urban Development Act of 1968;
`(D) the Fair Housing Act;
`(E) title I and section 810 of the Housing and Community Development Act
of 1974;
`(F) section 201 of the Housing and Community Development Amendments of 1978;
`(G) the Congregate Housing Services Act of 1978;
`(H) section 222 of the Housing and Urban-Rural Recovery Act of 1983;
`(I) section 561 of the Housing and Community Development Act of 1987; and
`(J) title IV of the Stewart B. McKinney Homeless Assistance Act.
`(3) In conducting evaluations and monitoring pursuant to the authority
under this subsection, the Secretary shall determine any need for additional
staff and funding relating to evaluating and monitoring the programs under
paragraph (2).
`(4)(A) The Secretary may provide for evaluation and monitoring under this
subsection directly or by grants, contracts, or interagency agreements. Not
more than 50 percent of the amounts made available under paragraph (1)
may be used for grants, contracts, or interagency agreements.
`(B) Any amounts not used for grants, contracts, or interagency agreements
under subparagraph (A) shall be used in a manner that increases and
strengthens the ability of the Department to monitor and evaluate the
programs under paragraph (2) through officers and employees of the
Department.
`(5) Not later than December 31 of each year, the Secretary shall submit
to the Congress a report regarding the use of amounts made available under
this subsection during the fiscal year ending on September 30 of that
year, including an analysis of the ability of the Department to monitor
and evaluate the programs under paragraph (2) and a statement of any needs
determined under paragraph (3).
`(6) There is authorized to be appropriated to carry out this subsection
$25,000,000 for fiscal year 1991. Such amounts shall remain available
until expended.'.

0d5b6e056b90afdbac96b1aff81ba1d0145deda6232a0ba7b7fca548723cec9b

(a) IN GENERAL- Section 235(r) of the National Housing Act is amended to
read as follows:
`(r)(1) The Secretary is authorized, upon application of a mortgagee, to
insure under this subsection a mortgage the proceeds of which are used to
refinance a mortgage insured under this section.
`(2) To be eligible for insurance under this subsection, a mortgage must be
executed by a mortgagor meeting the requirements of paragraph (3) and shall--
`(A) be a first lien on real estate held in fee simple, or on a leasehold
under a lease--
`(i) for not less than 99 years which is renewable; or
`(ii) having a period of not less than 10 years to run beyond the maturity
date of the mortgage;
`(B) have been made to, and held by, a mortgagee approved by the Secretary;
`(C) be in an amount not exceeding the outstanding principal balance,
including any unpaid interest, due on the mortgage being refinanced;
`(D) have a maturity not exceeding the unexpired term of the mortgage
being refinanced;
`(E) bear an interest rate not exceeding such percent per annum on the amount
of the principal obligation outstanding at any time as the Secretary finds
necessary to meet the mortgage market, taking into consideration the yields
on mortgages in the primary and secondary markets; to the extent that the
amounts described in paragraphs (4) (A) and (B) are not otherwise paid
by the Secretary, the foregoing interest rate may be increased, in the
discretion of the Secretary, to compensate the mortgagee for its payment
to, or on behalf of, the mortgagor of such amounts; and
`(F) meet the criteria for refinancing as determined by the Secretary.
`(3) Notwithstanding the provisions of subsection (h)(2), assistance
payments in connection with mortgages insured under paragraph (2) shall
be made only with respect to a family who is eligible for, and receiving
assistance payments with respect to, the insured mortgage being refinanced.
`(4) The Secretary is authorized and, to the extent provided in
appropriation Acts, may pay to the mortgagor (directly, through the
mortgagee, or otherwise)--
`(A) an amount, as approved by the Secretary, as an incentive to the
mortgagor to refinance a mortgage insured under this section; and
`(B) an amount as approved by the Secretary for costs incurred in
connection with the refinancing, including but not limited to discounts,
loan origination fees, and closing costs.
`(5) Amounts of budget authority required for assistance payments contracts
with respect to mortgages insured under this subsection shall be derived
from amounts recaptured from assistance payments contracts relating to
mortgages that are being refinanced. For purposes of subsection (c)(3)(A),
the amount of recaptured budget authority that the Secretary commits for
assistance payments contracts relating to mortgages insured under this
subsection shall not be construed as `unused'.
`(6) The Secretary is authorized to take any actions to identify and
communicate with any mortgagor of a mortgage insured under this section
to implement the refinancing of such mortgages with insurance under
this subsection. The Secretary may take such actions directly, or under
contract. Notwithstanding the restriction of section 552a(b) of title
5 of the United States Code, upon the request of an approved mortgagee,
the Secretary may disclose to such mortgagee the name and address of any
mortgagor of a mortgage insured under this section that meets the criteria
for refinancing, pursuant to paragraph (2)(F), and the unpaid principal
balance and interest rate on such mortgage.
`(7) The Secretary shall implement the provisions of this subsection by
a notice published in the Federal Register.'.
(b) EXCESS RECAPTURED AMOUNTS- Section 235(c)(3)(C) of the National Housing
Act is amended by inserting after the period at the end the following
new sentence: `Notwithstanding the preceding sentence, any amounts of
budget authority or contract authority recaptured from assistance payments
contracts relating to mortgages that are being refinanced that are not
required for assistance payments contracts relating to mortgages insured
under this subsection, shall be rescinded.'.
(c) CONFORMING AMENDMENTS- Section 235 of the National Housing Act is
amended--
(1) in subsection (c)(1), by inserting `, other than a contract in connection
with a refinancing under subsection (r),' in the second sentence after
`any new contract';
(2) in subsection (c)(3)(A), by inserting `(except to the extent provided
in subsection (r) for mortgages insured under such subsection)' in the
second sentence after `refinanced,';
(3) in subsection (e), by striking `or (j)(7),' and inserting `(j)(7), or
(r),';
(4) in subsection (h)(1)--
(A) by inserting `(other than obligations in connection with mortgages
insured under subsection (r))' in the third sentence after `October 1, 1983';
(B) by inserting `(except under subsection (r))' in the sixth sentence after
`under this section' the first place it appears; and
(C) by inserting `(other than a contract in connection with a mortgage
insured under subsection (r))' in the seventh sentence after `under this
section';
(5) in subsection (h)(3), by inserting after the period at the end
the following: `The preceding sentence shall not apply to contracts in
connection with mortgages insured under subsection (r).';
(6) in subsection (m), by inserting `(except a mortgage insured under
subsection (r))' after `No mortgage'; and
(7) in subsection (n), by inserting `or to a mortgage insured under
subsection (r)' before the period at the end.
(d) SAVINGS PROVISION- Notwithstanding the termination of the program
under section 235 pursuant to section 401(d) of the Housing and Community
Development Act of 1987, the Secretary of Housing and Urban Development
shall have authority to insure mortgages under section 235(r), to make
assistance payments with respect to such insured mortgages, and to make
any other payment or take any other action related to the refinancing of
mortgages insured under section 235.

5ab2cd0771d18494265dcc0d27b890594d681f43906cd6d8f0ab60cbf6acb0ff

(a) IN GENERAL- Section 810 of the Housing and Community Development Act
of 1974 is amended by adding at the end the following new subsection:
`(m) If the Secretary determines that any property transferred for use under
an urban homestead program under this section has been conveyed or used
under the program in a manner contrary to the provisions of this section,
the Secretary may take action as the Secretary considers appropriate,
including taking any of the following actions:
`(1) The Secretary may impose a civil penalty on the unit of general local
government or the State or the qualified community organization or public
agency designated by a unit of general local government, or the transferee
of such entity, as appropriate, in an amount not less than any profit
realized with respect to the conveyance or use of the property contrary
to the provisions of this section.
`(2) The Secretary may revoke the conveyance of the property pursuant to
subsection (b)(4) and revoke the transfer of the property to the unit of
general local government or State or the qualified community organization
or public agency designated by a unit of general local government, except
that the Secretary may not revoke the conveyance of any property under this
paragraph if the Secretary determines that the conveyance was made to an
individual or family who has substantially complied with the requirements of
this section for participation in an urban homestead program and who has no
knowledge of the conveyance or use of the property contrary to the provisions
of this section. If any tenants of any property for which a conveyance is
revoked under this paragraph would be displaced by such revocation and the
Secretary determines that the tenants are not responsible for or involved
in the actions for which the revocation has been imposed, the Secretary
shall, if practicable, take actions that would allow the tenants to remain
on the property and maintain the property under an urban homestead program.'.
(b) CONFORMING AMENDMENT- Section 810(b)(4) of the Housing and Community
Development Act of 1974 is amended by inserting before the semicolon at
the end the following: `or by the Secretary under subsection (m)(2)'.
(c) APPLICABILITY- The amendments made by this section shall apply to any
property transferred for use in an urban homestead program under section 810
of the Housing and Community Development Act of 1974 after January 1, 1981.

039419f0e9867b46d910d03178349d352cdbc0148050c871a7fa75c6e7e94ddc

Section 8(e)(2) of the United States Housing Act of 1937 is amended--
(1) by striking the period at the end of the first sentence and inserting
the following: `, and which shall involve a minimum expenditure of $3,000
for a unit, including its prorated share of work to be accomplished on
common areas or systems.';
(2) by inserting after the period at the end the following new sentence:
`In order to maximize the availability of low-income housing, in providing
assistance under this paragraph, the Secretary shall include in any
calculation or determination regarding the amount of the assistance to
be made available the extent to which any proceeds are available from any
tax credits provided under section 42 of the Internal Revenue Code of 1986
(or from any syndication of such credits) with respect to the housing.'; and
(3) by inserting after the period at the end (as inserted by paragraph
(2)) the following: `For each fiscal year, the Secretary may not provide
assistance pursuant to this paragraph to any project for rehabilitation
of more than 100 units. Assistance pursuant to this paragraph shall be
allocated according to the formula established pursuant to section 213(d)
of the Housing and Community Development Act of 1974, and awarded pursuant
to a competition under such section. The Secretary shall maintain a single
listing of any assistance provided pursuant to this paragraph, which shall
include a statement identifying the owner and location of the project to
which assistance was made, the amount of the assistance, and the number
of units assisted.'.
Subtitle C--Federal Housing Administration Reforms

ba11fc9bf8d47f78975bfdc3e8674f5523ab2e2967f423f21e6d4ce7a242b60b

Title V of the National Housing Act (as amended by the preceding provisions
of this Act) is further amended by adding at the end the following new
section:
`ANNUAL AUDITED FINANCIAL STATEMENTS
`SEC. 538. With respect to fiscal year 1989 and for every fiscal year
thereafter, the Secretary shall make available to the public a financial
statement of the insurance funds established under this Act that will
present their financial condition on a cash and accrual basis, consistent
with generally accepted accounting principles. Each financial statement
shall be audited by an independent accounting firm selected by the Secretary
and the results of such audit shall be made available to the public.'.

31a083c014ece80c4d05346a7083892f77848749a90ec9843c62766c34f525de

SINGLE FAMILY PROGRAM FOR LIFE OF MORTGAGE.
(a) IN GENERAL- Section 203(r) of the National Housing Act is amended--
(1) by amending the first sentence to read as follows: `The Secretary
shall take appropriate actions to reduce losses under the single-family
mortgage insurance programs carried out under this title.'; and
(2) by amending paragraphs (2) and (3) to read as follows:
`(2) requiring that at least one person acquiring ownership of a one- to
four-family residential property encumbered by a mortgage insured under
this title be determined to be creditworthy under standards prescribed
by the Secretary, whether or not such person assumes personal liability
under the mortgage (except that acquisitions by devise or descent shall
not be subject to this requirement); and
`(3) in any case where personal liability under a mortgage is assumed,
requiring that the original mortgagor be advised of the procedures by
which he or she may be released from liability.'.
(b) APPLICABILITY- The amendments made by subsection (a) shall apply only
with respect to--
(1) mortgages insured--
(A) pursuant to a conditional commitment issued on or after the date of
the enactment of this Act; or
(B) in accordance with the direct endorsement program (24 C.F.R. 200.163),
if the approved underwriter of the mortgage signs the appraisal report
for the property on or after the date of the enactment of this Act; and
(2) the approval of substitute mortgagors, if the original mortgagor was
subject to such amendments.
(c) TRANSITION PROVISIONS- Any mortgage insurance provided under title
II of the National Housing Act as it existed immediately before the date
of the enactment of this Act, shall continue to be governed (to the extent
applicable) by the provisions of section 203(r) of the National Housing Act,
as such section existed immediately before such date.

1b8db7f52e1e1dec5d2a5609dac4e83bda2475e1993d34e82fd2a48651eceb3f

(a) REPEAL- Title X of the National Housing Act is hereby repealed.
(b) APPLICABILITY- On or after the date of enactment of this Act, no mortgage
may be insured under title X, as such title existed immediately before
such date, except pursuant to a commitment to insure made before such date.
(c) SAVINGS PROVISION- Any contract of insurance entered into under title X
before the date of enactment of this Act shall be governed by the provisions
of such title as such title existed immediately before such date.
(d) CONFORMING AMENDMENTS- The National Housing Act is amended--
(1) in section 1, by striking `X,' each place it appears;
(2) in section 212(a), by striking the seventh sentence;
(3) in section 512, by striking `X,' in the first sentence;
(4) in section 522, by inserting `, as such title existed immediately
before the date of the enactment of the Department of Housing and Urban
Development Reform Act of 1989,' after `title X of this Act'; and
(5) in section 530, by striking `X,'.

5210a2cd85cc14629f68d4f97680759e9e1d3c5b99f4a6c66d1d07b0fe54a1b8

PARTICIPATION IN ORIGINATION OF PROPERTY IMPROVEMENT LOANS.
(a) IN GENERAL- Section 2(b) of the National Housing Act is amended by
adding at the end the following new paragraph:
`(7) With respect to the financing of alterations, repairs, and improvements
to existing structures or the building of new structures as authorized
under clause (i) of the first sentence of section 2(a), any loan broker (as
defined by the Secretary) or any other party having a financial interest in
the making of such a loan or advance of credit or in providing assistance
to the borrower in preparing the loan application or otherwise assisting
the borrower in obtaining the loan or advance of credit who knowingly
(as defined in section 536(g) of this Act) submits to any such financial
institution or to the Secretary false information shall be subject to a
civil money penalty in the amount and manner provided under section 536
with respect to mortgagees and lenders under this Act.'.
(b) APPLICABILITY- The amendment made by subsection (a) shall apply only
with respect to--
(1) violations referred to in the amendment that occur on or after the
date of the enactment of this Act; and
(2) in the case of a continuing violation (as determined by the Secretary
of Housing and Urban Development), any portion of a violation referred to
in the amendment that occurs on or after such date.

8078f9b420aeec4b8220b8a27325f0b5d013e254df0f9eabf3f0b450abb93aa7

Section 203 of the National Housing Act is amended by adding at the end
the following new subsection:
`(s) Whenever the Secretary has taken any discretionary action to suspend
or revoke the approval of any mortgagee to participate in any mortgage
insurance program under this title, the Secretary shall provide prompt
notice of the action and a statement of the reasons for the action to--
`(1) the Secretary of Veterans Affairs;
`(2) the chief executive officer of the Federal National Mortgage
Association;
`(3) the chief executive officer of the Federal Home Loan Mortgage
Corporation;
`(4) the Administrator of the Farmers Home Administration;
`(5) if the mortgagee is a national bank or District bank, or a subsidiary
or affiliate of such a bank, the Comptroller of the Currency;
`(6) if the mortgagee is a State bank that is a member of the Federal
Reserve System or a subsidiary or affiliate of such a bank, or a bank
holding company or a subsidiary or affiliate of such a company, the Board
of Governors of the Federal Reserve System;
`(7) if the mortgagee is a State bank that is not a member of the Federal
Reserve System or is a subsidiary or affiliate of such a bank, the Board
of Directors of the Federal Deposit Insurance Corporation; and
`(8) if the mortgagee is a Federal or State savings association or a
subsidiary or affiliate of a savings association, the Director of the
Office of Thrift Supervision.'.

ebfda5cd540afdd83fb4d043fc2b1dcc1372f79945a23bf85444253b11c568a1

(a) MAINTENANCE- Section 204(a) of the National Housing Act is amended by
inserting after the period at the end of the third sentence the following
new sentence: `As a condition of the receipt of such benefits, the mortgagee
shall maintain or assure the maintenance of the mortgaged property (in
such manner as the Secretary shall by regulation provide) during the
period beginning on the taking of the possession or other acquisition of
the mortgaged property by the mortgagee and ending on conveyance to the
Secretary or other disposition of the mortgaged property in accordance with
this section, and funds expended by the mortgagee in meeting such obligation
shall be included, to the extent provided in this subsection or in subsection
(k), in debentures or other insurance payment pursuant to this section.'.
(b) DISPOSITION OF PROPERTIES ON CREDIT TERMS- Section 204(g) of the
National Housing Act is amended by inserting after the period at the end
of the first sentence the following new sentence: `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.'.

1700cb195b77c05aae3ed5938bde250c997aadc3be5c936df7defb86fe471cd6

VICTIMS.
(a) HUD-
(1) STUDY- The Secretary of Housing and Urban Development shall conduct
a study regarding the feasibility of making available, to low-income
persons whose homes in areas declared by the President as disaster areas
as a result of hurricane Hugo or the Loma Prieta earthquake during 1989
were destroyed by such disasters, any available properties (including
multifamily properties) owned by the Secretary.
(2) REPORT- The Secretary of Housing and Urban Development shall submit
to the Congress, not later than the expiration of the 90-day period
beginning on the date of the enactment of this Act, a report regarding
the results and conclusions of the study under paragraph (1), together
with any recommendations for legislation regarding providing such property.
(b) FARMERS HOME ADMINISTRATION- The Secretary of Agriculture shall
conduct a study regarding the feasibility of making available, as provided
in subsection (a)(1), any available properties (including multifamily
properties) owned by the Secretary through the Farmers Home Administration
and shall submit a report regarding such study as provided in subsection
(a)(2).
(c) CONSULTATION- The Secretary of Housing and Urban Development and
the Secretary of Agriculture shall consult in conducting the studies
under subsections (a) and (b) and may submit a single report meeting the
requirements of subsections (a)(2) and (b).

9161444d2a83df369313a736fd776c8a79718def7d909ec21b667f4af9f7b6b4

(a) IN GENERAL- With respect to the direct endorsement program in connection
with single-family mortgage insurance under title II of the National Housing
Act, the Secretary shall submit to the Congress a report describing any
actions the Secretary determines are necessary to take, to--
(1) improve monitoring and supervision under the program;
(2) reduce defaults under the program; and
(3) decrease the potential for fraud under the program.
(b) TIME OF SUBMISSION- The Secretary shall submit the report under
subsection (a) to the Congress not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act.

31dbaa31de452f5a807fa229cebb959127915339665de8d5d3b998e3b53cd254

(a) IN GENERAL- Section 244 of the National Housing Act is amended by
adding at the end thereof the following new subsection:
`(i) The Secretary shall, by January 15 and July 15 of each year (1) review
the adequacy of capital and other requirements for mortgagees under this
section, (2) assess the compliance by mortgagees with such requirements,
and (3) make such adjustment to such requirements as the Secretary, after
providing opportunity for hearing, determines to be appropriate to improve
the long-term financial soundness of the Federal Housing Administration
funds. Such requirements shall include the minimum capital or net worth of
mortgagees; the ratio that mortgagees shall maintain between the mortgagee's
capital and the volume of mortgages co-insured by such mortgagee; and such
other requirements as the Secretary determines to be appropriate to ensure
the long-term financial soundness of the Federal Housing Administration
funds. The Secretary shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Banking, Finance and Urban
Affairs of the House of Representatives a report on the review and assessment
under the previous sentence, and an explanation of the Secretary's reasons
for making any adjustment in requirements authorized under this section.'.
(b) REPORT- The Secretary of Housing and Urban Development shall submit to
the Congress not later than April 1, 1990, a report on the disposition of
coinsured multifamily housing projects held by the Government National
Mortgage Association. The report shall include a description of the
guidelines governing the disposition of such properties, particularly as
such guidelines relate to the objectives of--
(1) minimizing losses to the Federal Government;
(2) preserving the projects in decent, safe, and sanitary condition; and
(3) protecting lower-income tenants residing in such projects.
The report shall also describe the status of such multifamily housing
projects, including the name, address, and size of each project, and the
date and conditions of any foreclosure sale.

43789a95e2330f720e4d5f8ae093a98a0a3cb13dea24b5e9742316d6e7a5664a

Section 4 of the Department of Housing and Urban Development Act is amended--
(1) by redesignating subsections (b), (c), and (d) as subsections (c),
(d), and (e), respectively; and
(2) by redesignating the second sentence in subsection (a) as subsection (b)
and adding at the end thereof the following: `The Secretary shall ensure,
to the extent practicable, that managers of Federal Housing Administration
programs, at each level of the Department, shall be accountable for program
operation, risk management, management of cash and other Federal assets,
and program financing related to activities over which such managers have
responsibility.'.

57f51976f687e865c19cda61b998906b504d78bf2b16169dc1761fe43ce49c46

Section 7(e) of the Department of Housing and Urban Development Act is
amended by adding at the end thereof the following: `The Secretary is
authorized to enter into contracts with private companies for the provision
of such managerial support to the Federal Housing Administration as the
Secretary determines to be appropriate, including but not limited to
the management of insurance risk and the improvement of the delivery of
mortgage insurance.'.

be372700cee98e3657880afe79c42393d124a88a76bc94008541595791d4fb31

Section 202 of the National Housing Act is amended by--
(1) striking the heading `MUTUAL MORTGAGE INSURANCE FUND' and inserting
`FEDERAL HOUSING ADMINISTRATION OPERATIONS';
(2) striking `SEC. 202.' and inserting: `SEC. 202. (a) MUTUAL MORTGAGE
INSURANCE FUND- '; and
(3) adding at the end thereof the following new subsections:
`(b) ADVISORY BOARD- There is created a Federal Housing Administration
Advisory Board (`Board') that shall review operation of the Federal
Housing Administration, including the activities of the Mortgagee Review
Board, and shall provide advice to the Federal Housing Commissioner with
respect to the formulation of general policies of the Federal Housing
Administration and such other matters as the Federal Housing Commissioner
may deem appropriate. The Advisory Board shall, in all other respects,
be subject to the provisions of the Federal Advisory Committee Act.
`(1) The Advisory Board shall be composed of 15 members to be appointed
from among individuals who have substantial expertise and broad experience
in housing and mortgage lending of whom--
`(A) 9 shall be appointed by the Secretary;
`(B) 3 shall be appointed by the Chairman and Ranking Minority Member of
the Subcommittee on Housing and Urban Affairs of the Committee on Banking,
Housing, and Urban Affairs of the Senate; and
`(C) 3 shall be appointed by the Chairman and Ranking Minority Member of
the Subcommittee on Housing and Community Development of the Committee on
Banking, Finance and Urban Affairs of the House of Representatives.
`(2) Membership on the Advisory Board shall include--
`(A) not less than 4 persons with distinguished private sector careers in
housing finance, lending, management, development or insurance;
`(B) not less than 4 persons with outstanding reputations as licensed
actuaries, experts in actuarial science, or economics related to housing;
`(C) not less than 4 persons with backgrounds of leadership in representing
the interests of housing consumers;
`(D) not less than 1 person with significant experience and a distinguished
reputation for work in the enforcement, advocacy, or development of fair
housing or civil rights legislation; and
`(E) not less than 1 person with a background of leadership representing
rural housing interests.
`(3) Members of the Advisory Board shall be selected to ensure, to the
greatest extent practicable, geographical representation for every region
of the country.
`(4) Not more than 8 members of the Advisory Board may be from any one
political party.
`(5) Membership of the Advisory Board shall not include any person who,
during the previous 24-month period, was required to register with the
Secretary under section 112(c) of the Department of Housing and Urban
Development Reform Act of 1989 or employed a person for purposes that
required such person to so register.
`(6) Of the members of the Advisory Board first appointed, 5 shall have
terms of l year, and 5 shall have terms of 2 years. Their successors and
all other appointees shall have terms of 3 years.
`(7) The Advisory Board is empowered to confer with, request information
of, and make recommendations to the Federal Housing Commissioner. The
Commissioner shall promptly provide the Advisory Board with such information
as the Board determines to be necessary to carry out its review of the
activities and policies of the Federal Housing Administration.
`(8) The Board shall, not later than December 31 of each year, submit to the
Secretary and the Congress a report of its assessment of the activities of
the Federal Housing Administration, including the soundness of underwriting
procedures, the adequacy of information systems, the appropriateness of
staffing patterns, the effectiveness of the Mortgagee Review Board, and
other matters related to the Federal Housing Administration's ability to
serve the nation's homebuyers and renters. Such report shall contain the
Board's recommendations for improvement and include any minority views.
`(9) The Board shall meet in Washington, D.C., not less than twice annually,
or more frequently if requested by the Federal Housing Commissioner or
a majority of the members. The Board shall elect a chair, vice-chair and
secretary and adopt methods of procedure. The Board may establish committees
and subcommittees as needed.
`(10) Subject to the provisions of Section 7 of the Federal Advisory
Committee Act, all members of the Board may be compensated and shall
be entitled to reimbursement from the Department for traveling expenses
incurred in attendance at meetings of the Board.
`(c) Mortgagee Review Board-
`(1) ESTABLISHMENT- There is established within the Federal Housing
Administration the Mortgagee Review Board (`Board'). The Board is
empowered to initiate the issuance of a letter of reprimand, the
probation, suspension or withdrawal of any mortgagee found to be engaging
in activities in violation of Federal Housing Administration requirements
or the nondiscrimination requirements of the Equal Credit Opportunity Act,
the Fair Housing Act, or Executive Order 11063.
`(2) COMPOSITION- The Board shall consist of--
`(A) the Assistant Secretary of Housing/Federal Housing Commissioner;
`(B) the General Counsel of the Department;
`(C) the President of the Government National Mortgage Association;
`(D) the Assistant Secretary for Administration;
`(E) the Assistant Secretary for Fair Housing Enforcement (in cases
involving violations of nondiscrimination requirements); and
`(F) the Chief Financial Officer of the Department;
or their designees.
`(3) ACTIONS AUTHORIZED- When any report, audit, investigation, or other
information before the Board discloses that a basis for an administrative
action against a mortgagee exists, the Board shall take one of the following
administrative actions:
`(A) LETTER OF REPRIMAND- The Board may issue a letter of reprimand only
once to a mortgagee without taking action under subparagraphs (B), (C),
or (D) of this section. A letter of reprimand shall explain the violation
and describe actions the mortgagee should take to correct the violation.
`(B) PROBATION- The Board may place a mortgagee on probation for a specified
period of time not to exceed 6 months for the purpose of evaluating the
mortgagee's compliance with Federal Housing Administration requirements, the
Equal Credit Opportunity Act, the Fair Housing Act, Executive Order 11063,
or orders of the Board. During the probation period, the Board may impose
reasonable additional requirements on a mortgagee including supervision
of the mortgagee's activities by the Federal Housing Administration,
periodic reporting to the Federal Housing Commissioner, or submission to
Federal Housing Administration audits of internal financial statements,
audits by an independent certified public accountant or other audits.
`(C) SUSPENSION- The Board may issue an order suspending a mortgagee's
approval for doing business with the Federal Housing Administration if there
exists adequate evidence of a violation or violations and continuation
of the mortgagee's approval, pending or at the completion of any audit,
investigation, or other review, or such administrative or other legal
proceedings as may ensue, would not be in the public interest or in
the best interests of the Department. A suspension shall last for not
less than 6 months. During the period of suspension, the Federal Housing
Administration shall not commit to insure any mortgage originated by the
suspended mortgagee.
`(D) WITHDRAWAL- The Board may issue an order withdrawing a mortgagee
if the Board has made a determination of a serious violation or repeated
violations by the mortgagee. The Board shall determine the terms of such
withdrawal, but the term shall be not less than 1 year. Where the Board
has determined that the violation is egregious or willful, the withdrawal
shall be permanent.
`(E) SETTLEMENTS- The Board may at any time enter into a settlement
agreement with a mortgagee to resolve any outstanding grounds for an
action. Agreements may include provisions such as--
`(i) cessation of any violation;
`(ii) correction or mitigation of the effects of any violation;
`(iii) repayment of any sums of money wrongfully or incorrectly paid
to the mortgagee by a mortgagor, by a seller or by the Federal Housing
Administration;
`(iv) actions to collect sums of money wrongfully or incorrectly paid by
the mortgagee to a third party;
`(v) indemnification of the Federal Housing Administration for mortgage
insurance claims on mortgages originated in violation of Federal Housing
Administration requirements;
`(vi) modification of the length of the penalty imposed; or
`(vii) implementation of other corrective measures acceptable to the
Secretary.
Material failure to comply with the provisions of a settlement agreement
shall be sufficient cause for suspension or withdrawal.
`(4) Notice and hearing-
`(A) The Board shall issue a written notice to the mortgagee at least 30
days prior to taking any action against the mortgagee under subparagraph
(B), (C), or (D) of paragraph (3). The notice shall state the specific
violations which have been alleged, and shall direct the mortgagee to reply
in writing to the Board within 30 days. If the mortgagee fails to reply
during such period, the Board may make a determination without considering
any comments of the mortgagee.
`(B) If the Board takes action against a mortgagee under subparagraph (B),
(C), or (D) of paragraph (3), the Board shall promptly notify the mortgagee
in writing of the nature, duration, and specific reasons for the action. If,
within 30 days of receiving the notice, the mortgagee requests a hearing,
the Board shall hold a hearing on the record regarding the violations
within 30 days of receiving the request. If a mortgagee fails to request a
hearing within such 30-day period, the right of the mortgagee to a hearing
shall be considered waived.
`(C) In any case in which the notification of the Board does not result
in a hearing (including any settlement by the Board and a mortgagee),
any information regarding the nature of the violation and the resolution
of the action shall be available to the public.
`(5) PUBLICATION- The Secretary shall establish and publish in the Federal
Register a description of and the cause for administrative action against
a mortgagee.
`(6) Cease-and-desist orders-
`(A) Whenever the Secretary, upon request of the Mortgagee Review Board,
determines that there is reasonable cause to believe that a mortgagee is
violating, has violated, or is about to violate, a law, rule or regulation
or any condition imposed in writing by the Secretary or the Board, and
that such violation could result in significant cost to the Federal
Government or the public, the Secretary may issue a temporary order
requiring the mortgagee to cease and desist from any such violation and
to take affirmative action to prevent such violation or a continuation of
such violation pending completion of proceedings of the Board with respect
to such violation. Such order shall include a notice of charges in respect
thereof and shall become effective upon service to the mortgagee. Such order
shall remain effective and enforceable for a period not to exceed 30 days
pending the completion of proceedings of the Board with respect to such
violation, unless such order is set aside, limited, or suspended by a court
in proceedings authorized by subparagraph (B) of this paragraph. The Board
shall provide the mortgagee an opportunity for a hearing on the record,
as soon as practicable but not later than 20 days after the temporary
cease-and-desist order has been served.
`(B) Within 10 days after the mortgagee has been served with a temporary
cease-and-desist order, the mortgagee may apply to the United States district
court for the judicial district in which the home office of the mortgagee is
located, or the United States District Court for the District of Columbia,
for an injunction setting aside, limiting of suspending the enforcement,
operation, or effectiveness of such order pending the completion of the
administrative proceedings pursuant to the notice of charges served upon the
mortgagee, and such court shall have jurisdiction to issue such injunction.
`(C) In the case of violation or threatened violation of, or failure to
obey, a temporary cease-and-desist order issued pursuant to this paragraph,
the Secretary may apply to the United States district court, or the United
States court of any territory, within the jurisdiction of which the home
office of the mortgagee is located, for an injunction to enforce such order,
and, if the court shall determine that there has been such violation or
threatened violation or failure to obey, it shall be the duty of the court
to issue such injunction.
`(D) For purposes of this paragraph, the term `mortgagee' means a mortgagee,
a branch office or subsidiary of a mortgagee, or a director, officer,
employee, agent, or other person participating in the conduct of the
affairs of such mortgagee.
`(7) REPORT REQUIRED- The Board, in consultation with the Federal Housing
Administration Advisory Board, shall annually recommend to the Secretary
such amendments to statute or regulation as the Board determines to be
appropriate to ensure the long term financial strength of the Federal Housing
Administration fund and the adequate support for home mortgage credit.
`(d) Coordination of GNMA and FHA Withdrawal Action-
`(1) Whenever the Federal Housing Administration or Government National
Mortgage Association initiates proceedings that could lead to withdrawing the
mortgagee from participating in the program, the initiating agency shall--
`(A) within 24 hours notify the other agency in writing of the action taken;
`(B) provide to the other agency the factual basis for the action taken; and
`(C) if a mortgagee is withdrawn, publish its decision in the Federal
Register.
`(2) Within 60 days of receipt of a notification of action that could lead
to withdrawal under subsection (1), the Federal Housing Administration or
the Government National Mortgage Association shall--
`(A) conduct and complete its own investigation;
`(B) provide written notification to the other agency of its decision,
including the factual basis for its decision; and
`(C) if a mortgagee is withdrawn, publish its decision in the Federal
Register.
`(e) APPRAISAL STANDARDS- (1) The Secretary shall prescribe standards
for the appraisal of all property to be insured by the Federal Housing
Administration. Such appraisals shall be performed in accordance with
uniform standards, by individuals who have demonstrated competence and
whose professional conduct is subject to effective supervision. These
standards shall require at a minimum--
`(A) that the appraisals of properties to be insured by the Federal Housing
Administration shall be performed in accordance with generally accepted
appraisal standards, such as the appraisal standards promulgated by the
Appraisal Foundation a not-for-profit corporation established on November
30, 1987 under the laws of Illinois; and
`(B) that each appraisal be a written statement used in connection with
a real estate transaction that is independently an impartially prepared
by a licensed or certified appraiser setting forth an opinion of defined
value of an adequately described property as of a specific date, supported
by presentation and analysis of relevant market information.
`(2) The Appraisal Subcommittee of the Federal Financial Institutions
Examination Council shall include the Secretary or his designee.'.

2fd0a1391181c779543a82f993dd42bca9bd1ce4879e73275897d6d8a1a96910

INSURANCE PROGRAM.
(a) RETENTION OF PUBLIC AND NONPROFIT INVESTOR OWNERS- Section 203(g)(3)
of the National Housing Act is amended--
(1) in subparagraph (A), by striking the semicolon at the end and inserting
the following: `, or any other State or local government or an agency
thereof;'; and
(2) in subparagraph (B), by striking the semicolon at the end and inserting
the following: `, or other private nonprofit organization that is exempt from
taxation under section 501(c)(3) of the Internal Revenue Code of 1986 and
intends to sell or lease the mortgaged property to low or moderate-income
persons, as determined by the Secretary;'.
(b) ELIMINATION OF PRIVATE INVESTOR-OWNERS- Section 203(g) of the National
Housing Act, as amended by subsection (a), is further amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3),
respectively.
(c) APPLICABILITY- The amendments made by this section shall apply only
with respect to--
(1) mortgages insured--
(A) pursuant to a conditional commitment issued on or after the date of
the enactment of this Act; or
(B) in accordance with the direct endorsement program, if the approved
underwriter of the mortgagee signs the appraisal report for the property
on or after the date of the enactment of this Act; and
(2) the approval of substitute mortgagors, if the original mortgagor was
subject to such amendments.
(d) TRANSITION PROVISIONS- Any mortgage insurance provided under title II
of the National Housing Act, as it existed immediately before the date of
the enactment of this Act, shall continue to be governed (to the extent
applicable) by the provisions amended by subsections (a) and (b) as such
provisions existed immediately before such date.

59971d87266f5ae6584701479d8d2091463ace6ca33a389840a5680de5737820

Section 203(a) of the Emergency Low Income Housing Preservation Act of 1987
is amended by striking `upon the expiration of the 2-year period beginning
on the date of the enactment of this Act' and inserting in lieu thereof
`on September 30, 1990'.

7bd79631b404d9531470ae7ecaf1d4a5b3f5276e0994fe2ed126e4d329769f2e

TITLE II

-HOUSING PRESERVATION

(a) GENERAL PREPAYMENT LIMITATION- Section 221(a) of the Emergency Low
Income Housing Preservation Act of 1987 is amended by adding at the
end the following new sentence: `An insurance contract with respect to
eligible low-income housing may be terminated pursuant to section 229 of
the National Housing Act only in accordance with a plan of action approved
by the Secretary under this subtitle.
(b) ALTERNATIVE PREPAYMENT LIMITATION- Section 221(b) of the Emergency
Low Income Housing Preservation Act of 1987 is amended--
(1) by striking the first comma and inserting `(1)'; and
(2) by inserting before the period at the end of the sentence the following:
`, and (2) an insurance contract with respect to eligible low-income housing
located in the geographic area subject to the jurisdiction of such court
may not be terminated pursuant to section 229 of the National Housing Act
during the 2-year period following the date of such invalidation'.
(c) NOTICE OF INTENT- Section 222 of the Emergency Low Income Housing
Preservation Act of 1987 is amended by inserting after `agreement' the
following: `(including a request to terminate the insurance contract
pursuant to section 229 of the National Housing Act)'.
(d) CONFORMING AMENDMENTS-
(1) Section 250(a) of the National Housing Act is amended by inserting
after `project' the second place it appears the following: `or permit a
termination of an insurance contract pursuant to section 229 of this Act'.
(2) Section 229 of the National Housing Act is amended by inserting after
`section 2' the following: `and except as specified under section 250 of
this Act and subtitle B of the Emergency Low Income Housing Preservation
Act of 1987,'.

47af312d7dd8ebc1c81abbe1ac4d11fc47a8b9570c84a32a6cb32c61ae3ca17e

(a) Loans-
(1) ACQUISITIONS BY PUBLIC ENTITIES- Section 236(b) of the National Housing
Act is amended by inserting `public entity,' before `or a cooperative
housing corporation'.
(2) CAPITAL IMPROVEMENT LOANS- (A) Section 201(m)(2)(B) of the Housing and
Community Development Amendments of 1978 is amended by striking `Reduce'
and inserting `Notwithstanding subsection (l)(2)(B), reduce'.
(B) Section 201(m)(2) of the Housing and Community Development Amendments
of 1978 is amended--
(i) by striking `not subject to paragraph (1)';
(ii) by inserting after `residents' the second place it appears the
following: `, or where appropriate to implement a plan of action under
subtitle B of the Emergency Low Income Housing Preservation Act of 1987';
(iii) adding a new subparagraph after subparagraph (D):
`(E) Permit repayment of the debt service to be deferred as long as the low
and moderate income character of the project is maintained in accordance
with subsection (d).'.
(b) APPROVAL OF PLAN OF ACTION-
(1) TENANT PROFILE- Section 225(b)(3)(F)(i) of the Emergency Low Income
Housing Preservation Act of 1987 is amended by inserting before the semicolon
the following: `(based on the area median income limits established by the
Secretary in February, 1987), or the date the plan of action is approved,
whichever date results in the highest proportion of very low-income families,
except that this limitation shall not prohibit a higher proportion of very
low-income families from occupying the housing'.
(2) SECTION 8 RENTAL ASSISTANCE- Section 225 of the Emergency Low Income
Housing Preservation Act of 1987 is amended by adding at the end the
following new subsections:
`(c) SECTION 8 RENTAL ASSISTANCE- When providing rental assistance under
section 8, the Secretary may enter into a contract with an owner, contingent
upon the future availability of appropriations for the purpose of renewing
expiring contracts for rental assistance as provided in appropriations Acts,
to extend the term of such rental assistance for such additional period
or periods as is necessary to carry out an approved plan of action. The
contract and the approved plan of action shall provide that, if the Secretary
is unable to extend the term of such rental assistance or is unable to
develop a revised package of incentives providing benefits to the owner
comparable to those received under the original approved plan of action,
the Secretary, upon the request of the owner, shall take the following
actions (subject to the limitations under the following paragraphs):--
`(1) Modification of the binding commitments made pursuant to subsection
(b) that are dependent on such rental assistance.
`(2) If action under paragraph (1) is not feasible, release of an owner
from the binding commitments made pursuant to subsection (b) that are
dependent on such rental assistance.
`(3) If action under paragraphs (1) and (2) would, in the determination
of the Secretary, result in the default of the insured loan, approval of
the revised plan of action, notwithstanding subsection (a), that involves
the termination of low-income affordability restrictions.
At least 30 days prior to making a request under the preceding sentence,
an owner shall notify the Secretary of the owner's intention to submit the
request. The Secretary shall have a period of 90 days following receipt of
such notice to take action to extend the rental assistance contract and to
continue the binding commitments under subsection (b).
`(d) RELOCATION OF DISPLACED TENANTS- Any plan of action shall specify
actions that the Secretary and the owner shall take to ensure that any
tenants, displaced as a result of a plan of action approved under subsection
(a) or as a result of modifications taken pursuant to subsection (c),
are relocated to affordable housing.'.
(c) INSURANCE FOR SECOND MORTGAGE FINANCING-
(1) UNDERWRITING- Section 241(f)(2) of the National Housing Act is amended
by adding at the end the following sentence:
`When underwriting an equity loan under this subsection, the Secretary may
assume that the rental assistance provided in accordance with an approved
plan of action under section 225(b) of the Emergency Low Income Housing
Preservation Act of 1987 will be extended for the full term of the contract
entered into under section 225(c) of that Act. The Secretary may accelerate
repayment of a loan under this section in the event rental assistance is
not extended under section 225(c) of that Act or the Secretary is unable
to develop a revised package of incentives to the owner comparable to those
received under the original approved plan of action.'.
(2) ACQUISITIONS BY PUBLIC ENTITIES- Section 241(f)(3) of the National
Housing Act is amended by inserting `public entity,' after `A'.
(d) LIMITATIONS ON FORECLOSURE- Section 241(f) of the National Housing
Act is amended by adding at the end the following new paragraph:
`(6) If the Secretary is unable to extend the term of rental assistance
for the full term of the contract entered into under section 225(c) of the
Emergency Low Income Housing Preservation Act of 1987, the Secretary is
authorized to take such actions as the Secretary deems to be appropriate
to avoid default, avoid disruption of the sound ownership and management
of the property or otherwise minimize the cost to the Federal Government.'.

fc327990ee7bccb29843cf5ffaf2c6c556d9d46c3427080a65afc00242be58f9

(a) MANAGEMENT AND PRESERVATION OF HUD-OWNED AND HUD-HELD MULTIFAMILY
HOUSING PROJECTS- Section 203(k) of the Housing and Community Development
Amendments of 1978 is amended to read as follows: `The Secretary shall
annually submit to the Congress on June 1 of each year a report describing
the status of multifamily housing projects that are subject to subsection
(a), which report shall include--
`(1) the name, address, and size of each project;
`(2) the nature and date of assignment;
`(3) the status of the mortgage;
`(4) the physical condition of the project;
`(5) the proportion of units in a project that are vacant;
`(6) the date on which the Secretary became mortgagee in possession or
the date of imposition of any receivership;
`(7) the date and conditions of any foreclosure sale;
`(8) the date of acquisition by the Secretary; and
`(9) the date and conditions of any property disposition sale.
The report shall describe the activities carried out under subsection (e)
during the preceding year, and shall contain a description and assessment of
the rules, guidelines and practices governing the Department's assumption
of management responsibilities in multifamily housing projects subject to
subsection (a) that are owned by the Secretary (or for which the Secretary is
mortgagee in possession) as well as the steps that the Secretary has taken
or plans to take to expedite the assumption of management responsibilities
of the Department and improve the management performance of the Department,
including the expedited repair and turnover of vacant units.'.
(b) REHABILITATION LOANS- Section 241 of the National Housing Act is
amended by inserting the following after subsection (f):
`(g)(1) When underwriting a rehabilitation loan under this section in
connection with eligible multifamily housing, the Secretary may assume that
any rental assistance provided for purposes of servicing the additional debt
will be extended for the term of the rehabilitation loan. The Secretary
shall exercise prudent underwriting practices in insuring rehabilitation
loans under this section. For purposes of this subsection, the term
`eligible multifamily housing' means any housing financed by a loan or
mortgage that is--
`(A) insured or held by the Secretary under section 221(d)(3) of the
National Housing Act and assisted under section 101 of the Housing and
Urban Development Act of 1965 or section 8 of the United States Housing
Act of 1937;
`(B) insured or held by the Secretary and bears interest at a rate determined
under the proviso of section 221(d)(5) of the National Housing Act; or
`(C) insured, assisted or held by the Secretary under section 236 of the
National Housing Act.
`(2) A mortgagee approved by the Secretary may not withhold consent to
a rehabilitation loan insured in connection with eligible multifamily
housing on which that mortgagee holds a mortgage.'.
(c) CAPITAL ASSESSMENT STUDY- (1) The Secretary of Housing and Urban
Development shall conduct a study to determine the physical renovation
needs of the Nation's federally assisted multifamily housing inventory
that is distressed and to estimate the cost of correcting deficiencies
and subsequently maintaining that inventory in adequate physical
condition. The Secretary shall establish criteria to determine what
housing qualifies as distressed and such criteria shall include factors
such as serious deficiencies in the original design, deferred maintenance,
physical deterioration or obsolescence of major systems and other serious
deficiencies in the physical plant of a project. The study shall examine and
assess the adequacy of existing tools that are available to the Secretary
for modernization efforts including--
(A) mortgage insurance for rehabilitation loans under section 241 of the
National Housing Act;
(B) operating assistance and capital improvement loans under section 201
of the Housing and Community Development Amendments of 1978 (the `Flexible
Subsidy Program'); and
(C) rental assistance under section 8.
The study shall also examine and assess the effectiveness of sanctions
that are now available to the Secretary. Not later than one year after the
date of enactment of this Act, the Secretary shall submit to the Congress a
detailed report setting forth the findings of the Secretary as a result of the
study. The Secretary shall submit to the Congress an interim report containing
the information required under paragraph (2) not later than April 1, 1990.
(2) The examination and assessment of the Flexible Subsidy Program required
by paragraph (1) shall include--
(A) an accounting of all applications that have been approved or rejected
since 1980;
(B) an analysis of all applications that have not been acted upon since
1980 including the length of time such applications have been pending,
the amount of assistance requested, and the number of units affected;
(C) an estimate of the funding that will be made available to the Flexible
Subsidy Fund under section 201(j) of the Housing and Community Development
Amendments of 1978 in the next three fiscal years; and
(D) an assessment of what additional resources will be needed for the Fund
in the next three fiscal years.
(3) The term `federally-assisted multifamily housing' means housing financed
by a loan or mortgage that is--
(A) insured or held by the Secretary under section 221(d)(3) of the
National Housing Act and assisted under section 101 of the Housing and
Urban Development Act of 1965 or section 8 of the United States Housing
Act of 1937;
(B) insured or held by the Secretary and bears interest at a rate determined
under the proviso of section 221(d)(5) of the National Housing Act; or
(C) insured, assisted or held by the Secretary under section 236 of the
National Housing Act.

61c0f5bbbbdad4c5d84ceaa10c78a75ffb9ed1782adfab1bfdc9ea409fc48542

The Secretary of Housing and Urban Development shall submit to the Congress,
not later than 30 days after the date of enactment of this Act, a report
describing the steps that have been and will be taken to implement section
184 of the Housing and Community Development Act of 1987 including a
detailed description of--
(1) the efforts taken by the Secretary to solicit participants in the
demonstration;
(2) any applications, responses or other expressions of interest submitted
by State housing finance agencies;
(3) the reasons for the Secretary's refusal, as of the date of enactment
of this Act, to approve such applications; and
(4) the steps that the Secretary has taken and plans to take to ensure
that the demonstration is implemented in at least one State within 90 days
after the date of enactment of this Act.

0a31ea22850aa00209603ce871919609b5bc3a50fb6e0584130fae7e7dd9a429

(a) IN GENERAL- Section 502(c)(1) of the Housing Act of 1949 is amended--
(1) by inserting `(A)' after `(c)(1)';
(2) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii),
respectively; and
(3) by adding at the end the following new subparagraph:
`(B) The Secretary may not accept an offer to prepay, or request refinancing
in accordance with subsection (b)(3) of, any loan made or insured under
section 515 pursuant to a contract entered into on or after the date of
the enactment of the Department of Housing and Urban Development Reform
Act of 1989.'.
(b) CONFORMING AMENDMENT- Section 502(c)(1) of the Housing Act of 1949
is amended--
(1) by striking `after the date of enactment of this subsection,' and
inserting the following: `after December 21, 1979, but before the date of
the enactment of the Department of Housing and Urban Development Reform
Act of 1989,'; and
(2) by striking `after the date of enactment of this subsection and' and
inserting the following: `after December 21, 1979, but before the date of
the enactment of the Department of Housing and Urban Development Reform
Act of 1989, and'.

6dacf83bd4c8331c214f2b2813f4c905712ea4b828f50b151f0854bbbc9e2dd2

Section 515 of the Housing Act of 1949 is amended by adding at the end
the following new subsection:
`(t) Equity Takeout Loans-
`(1) AUTHORITY- The Secretary is authorized to guarantee an equity loan
(in the form of a supplemental loan) to an owner of housing financed with a
loan made or insured under subsection (b), only if the Secretary determines,
after taking into account local market conditions, that there is reasonable
likelihood that the housing will continue as decent, safe, and sanitary
housing for the remaining life of the original loan on the project made
or insured under subsection (b) and that such an equity loan is--
`(A) necessary to provide a fair return on the owner's investment in
the housing;
`(B) the least costly alternative for the Federal Government that is
consistent with carrying out the purposes of this subsection; and
`(C) would not impose an undue hardship on tenants or an unreasonable cost
to the Federal Government.
The amount of loans guaranteed under this subsection shall be subject to
limits provided in appropriations Acts.
`(2) TIMING- The Secretary is authorized to guarantee an equity loan under
this subsection after the expiration of the 20-year period beginning on
the date that an existing loan under subsection (b) of this section was
made or insured. Not more than one equity loan under this subsection may
be provided for any project.
`(3) AMOUNT OF THE TAKEOUT- The amount of an equity loan under this
subsection shall not exceed the difference between the outstanding principal
on debt secured by the project and 90 percent of the appraised value of
the project. The appraised value of the project shall be determined by
2 independent appraisers, 1 of whom shall be selected by the Secretary
and 1 of whom shall be selected by the owner. If the 2 appraisers fail
to agree on the value of the project, the Secretary and the owner shall
jointly select a third appraiser whose appraisal shall be binding on the
Secretary and the owner. The amount of the equity loan shall not exceed 30
percent of the amount of the original loan on the project made or insured
under subsection (b).
`(4) RESERVE ACCOUNT PAYMENTS- For each loan made or insured under subsection
(b) pursuant to a contract entered into after the date this subsection
takes effect, the owner shall make monthly payments from project income
to the Secretary for deposit in a reserve account for the project. Such
monthly payments shall, in the first year after the loan is made or insured,
equal $2 for each unit in the project, and shall increase by $2 annually
until the expiration of the 20-year period beginning on the date that
the loan was made or insured, except that such annual increases shall not
be required for a unit occupied by a low-income family or individual who
is paying more than 30 percent of the family's or individual's adjusted
income in rent. The rent on a unit for which payment is made under this
paragraph shall be increased by the amount of such payment.
`(5) Reserve account-
`(A) Payments under paragraph (4) shall be deposited in an interest bearing
account that the Secretary shall establish for the project.
`(B) The Secretary shall make available amounts in the reserve account
only for payments of principal and interest on an equity loan under this
subsection. Such payments shall be in amounts necessary to ensure that
rent payments made by low-income families residing in the housing do not
exceed the maximum rent under section 521(a)(2)(A);
`(C) Any payments to the account, and interest on such payments, not
expended in the project from which such payments were made, shall be used
in other projects to make payments of principal and interest on an equity
loan under this subsection. Such payments shall be in amounts necessary
to ensure that rent payments made by low-income families residing in the
housing do not exceed the maximum rent under section 521(a)(2)(A).
`(D) The Secretary shall make payments from accounts under this paragraph
only to the extent provided in appropriations Acts.
`(6) SUBMISSION OF PLAN- An owner requesting an equity loan under this
subsection shall submit a plan acceptable to the Secretary to ensure that
the cost of amortizing an equity loan under paragraph (1) does not result
in the displacement of very-low-income tenants or substantially alter the
income mix of the tenants in the project.
`(7) REGULATIONS- The Secretary shall issue final regulations within 180
days from the date of enactment of this subsection.
`(8) EFFECTIVE DATE- The requirements of this subsection shall apply to any
applications for assistance under this section on or after the expiration
of 180 days from the date of enactment of this subsection.'.

528c54c8692d762dc6a25c27557e4bb3aacbd5317e35753cfbe713d548db0984

Section 236(f)(3) of the National Housing Act is amended by striking
`September 30, 1989' and inserting `September 30, 1991'.

8eb4149f6c950daacc0e61a0f0af0d1a8e1ffb35d008257d7797abdc25dcff8c

Section 3(a)(2) of the United States Housing Act of 1937 is amended--
(1) in subparagraph (A), by striking `3-year' and inserting `5-year'; and
(2) in subparagraph (B)--
(A) by striking `3-year' and inserting `5-year'; and
(B) by adding at the end the following: `The terms of all ceiling rents
established prior to the date of enactment of the Department of Housing
and Urban Development Reform Act of 1989 shall be extended for the 5-year
period beginning on such date of enactment.'.

9d6d8d90771c9822bdedca70ba2d88fa704f6446a0f4914398430f127519bcd2

FEDERAL AGENCIES.
Section 535(b) of the Housing Act of 1949 is amended by striking `1-year
period beginning on the date of the enactment of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988' and inserting the following:
`6-month period beginning on the date of the enactment of the Department
of Housing and Urban Development Reform Act of 1989'.

6d7e0f4e9ddf1a4c5a8db8fd8202f3d8f2732875581958e99d73f5211b0b40f3

Section 17(d) of the United States Housing Act of 1987 is amended as follows:
`(11) Sale of units-
`(A) IN GENERAL- Notwithstanding any other provision of law, in the case of
a project assisted by a development grant awarded pursuant to this section
where (i) the grant was originally approved for a nonprofit cooperative, and
(ii) a majority of the units in the approved project have 3 or more bedrooms,
the nonprofit owner of such project may sell such units for fee simple or
condominium ownership if the requirements of subparagraph (B) are met.
`(B) REQUIREMENTS- The requirements of this subparagraph are that--
`(i) at least 80 percent of the units in the project are initially sold
to households with incomes that do not exceed 80 percent of the median
income of the area;
`(ii) housing cost to such households shall be initially calculated at
not to exceed 30 percent of actual household income;
`(iii) each purchaser agrees that, during the 20-year period following the
initial sale, any subsequent resale of the unit shall be to a purchaser whose
income does not exceed 80 percent of the median income for the area; and
`(iv) after the 20-year period described in clause (iii), the pro rata
grant attributable to a unit, which shall be secured by a deed of trust
on the unit, shall be repaid upon any sale, lease, or transfer of any
interest in the unit except for a sale of the unit to a purchaser whose
income does not exceed 80 percent of the median income of the area.
`(C) REFINANCING- A refinancing of the unit involving an equity withdrawal
shall require a repayment to the extent of the withdrawal not to exceed
the pro rata amount of the grant attributable to the unit. A refinancing
unrelated to a sale, equity withdrawal, lease, or transfer of interest
shall not require repayment.
`(D) ADMINISTRATION- A homeowner may request grantee approval of a sale,
equity withdrawal, or other transfer with postponement of the repayment or
without full or partial repayment and grantee may approve if the grantee
determines that--
`(i) an undue hardship will result from the application of the repayment
requirement, such as where the proceeds are insufficient to repay the loan
in full; or
`(ii) postponing repayment is in the interest of neighborhood growth
and stability.
`(E) EFFECT OF REPAYMENT- Upon repayment of the grant, any program
requirements affecting the unit shall terminate. The grantee shall use
repayments of the grant for low and moderate income housing as prescribed
by the Secretary. Notwithstanding any existing project covenants or
inconsistencies with this section, the Secretary shall take all action
necessary to implement this paragraph.'.

5ec9966bfa50be8e1de24152c9f267a30bcdb943018e187c894f80cd4edff994

(a) IN GENERAL- Title V of the Housing Act of 1949 is amended by adding
at the end the following:
`ACCOUNTABILITY
`SEC. 536. (a) Notice Regarding Assistance-
`(1) PUBLICATION OF NOTICE OF AVAILABILITY- The Secretary shall publish in
the Federal Register notice of the availability of any assistance under any
program or discretionary fund administered by the Secretary under this title.
`(2) PUBLICATION OF APPLICATION PROCEDURES- The Secretary shall publish
in the Federal Register a description of the form and procedures by which
application for the assistance may be made, and any deadlines relating
to the award or allocation of the assistance. Such description shall be
sufficient to enable any eligible applicant to apply for such assistance.
`(3) PUBLICATION OF SELECTION CRITERIA- Not less than 30 days before any
deadline by which applications or requests for assistance under any program
or discretionary fund administered by the Secretary must be submitted,
the Secretary shall publish in the Federal Register the criteria by which
selection for the assistance will be made. Such criteria shall include
any objective measures of housing need, project merit, or efficient use
of resources that the Secretary determines are appropriate and consistent
with the statute under which the assistance is made available.
`(4) DOCUMENTATION OF DECISIONS-
`(A) The Secretary shall award or allocate assistance only in response
to a written application in a form approved in advance by the Secretary,
except where other award or allocation procedures are specified in statute.
`(B) The Secretary shall ensure that documentation and other information
regarding each application for assistance is sufficient to indicate the
basis on which any award or allocation was made or denied. The preceding
sentence shall apply to--
`(i) any application for an award or allocation of assistance made by the
Secretary to a State, unit of general local government, or other recipient
of assistance, and
`(ii) any application for a subsequent award or allocation of such assistance
by such State, unit of general local government or other recipient.
`(C) The Secretary shall ensure that each application and all related
documentation and other information referred to in subparagraph (B) is
readily available for public inspection for a period of not less than 10
years, beginning not less than 30 days following the date on which the
award or allocation is made.
`(5) EMERGENCY EXCEPTION- The Secretary may waive the requirements of
paragraphs (1), (2), and (3) if the Secretary determines that the waiver
is required for adequate response to an emergency. Not less than 30 days
after providing a waiver under the preceding sentence, the Secretary shall
publish in the Federal Register the Secretary's reasons for so doing.
`(b) DISCLOSURES BY APPLICANTS- The Secretary shall require the disclosure
of information with respect to any application for assistance under this
title submitted by any applicant who has received or, in the determination of
the Secretary, can reasonably be expected to receive assistance under this
title in excess of $200,000 in the aggregate during any fiscal year. Such
information shall include the following:
`(1) OTHER GOVERNMENT ASSISTANCE- Information regarding any related
assistance from the Federal Government, a State, or a unit of general local
government, or any agency or instrumentality thereof, that is expected to
be made available with respect to the project or activities for which the
applicant is seeking assistance under this title. Such related assistance
shall include but not be limited to any loan, grant, guarantee, insurance,
payment, rebate, subsidy, credit, tax benefit, or any other form of direct
or indirect assistance.
`(2) INTERESTED PARTIES- The name and pecuniary interest of any person
who has a pecuniary interest in the project or activities for which the
applicant is seeking assistance. Persons with a pecuniary interest in the
project or activity shall include but not be limited to any developers,
contractors, and consultants involved in the application for assistance
under this title or the planning, development, or implementation of the
project or activity. For purposes of this paragraph, residency of an
individual in housing for which assistance is being sought shall not,
by itself, be considered a pecuniary interest.
`(3) EXPECTED SOURCES AND USES- A report satisfactory to the Secretary of
the expected sources and uses of funds that are to be made available for
the project or activity.
`(c) UPDATING OF DISCLOSURE- During the period when an application is
pending or assistance is being provided, the applicant shall update the
disclosure required under the previous subsection within 30 days of any
substantial change.
`(d) REGULATION OF LOBBYISTS AND CONSULTANTS-
`(1) LIMITATION OF FEES- Any person who is engaged for pay or for any
consideration for the purpose of attempting to influence any award or
allocation of assistance by the Secretary shall not seek or receive any
fee that is--
`(A) based on the amount of assistance or number of units that may be
provided by the Secretary, or
`(B) contingent on an award of assistance by the Secretary, except that
professional services related to a project may be donated in whole or in
part to a community housing development organization in the event assistance
for a project is not awarded.
`(2) REGISTRATION- Any person who will be engaged for pay or for any
consideration for the purpose of attempting to influence any award or
allocation of assistance by the Secretary shall, before doing anything
in furtherance of such object, register by submitting to the Secretary a
sworn statement containing--
`(A) such person's name and business address,
`(B) the nature and duration of any previous Federal employment,
`(C) the name and address of the person by whom such person is employed,
and in whose interest such person appears or works,
`(D) the duration of such employment,
`(E) how much such person is paid and is to receive,
`(F) by whom such person is paid or is to be paid,
`(G) how much such person is to be paid for expenses, and
`(H) what expenses are to be included.
For purposes of this paragraph, ownership by an individual of a single family
home financed under section 502 does constitute pay or consideration.
`(3) REPORTING- Each person registering under paragraph (2) shall, between
the first and tenth day of each calendar quarter, so long as such person's
activity continues, file with the Secretary a detailed report under oath
setting forth--
`(A) all money received and expended by such person during the preceding
calendar quarter in carrying on such person's work;
`(B) an identification of the person or persons to whom funds were paid
and the purposes of such payments;
`(C) all awards or allocations of assistance under this title that the
person attempted to influence; and
`(D) any contacts with any employee of the Department for the purpose
of attempting to influence any award or allocation of assistance by the
Secretary.
`(e) REMEDIES AND PENALTIES-
`(1) ADMINISTRATIVE REMEDIES- If the Secretary receives or obtains
information providing a reasonable basis to believe that a violation of
subsection (b), (c), or (d) this section has occurred, the Secretary shall--
`(A) in the case of a selection that has not been made, determine whether
to terminate the selection process or take other appropriate actions; and
`(B) in the case of a selection that has been made, determine whether to--
`(i) void or rescind the selection, subject to review and determination
on the record after opportunity for a hearing;
`(ii) impose sanctions upon the violator, including debarment, subject to
review and determination on the record after opportunity for a hearing;
`(iii) recapture any funds that have been disbursed;
`(iv) permit the violating applicant selected to continue to participate
in the program; or
`(v) take any other actions that the Secretary considers appropriate.
The Secretary shall publish in the Federal Register a descriptive statement
of each determination made and action taken under this paragraph.
`(2) CIVIL PENALTIES- Whoever violates any section of this section shall be
subject to the imposition of a civil penalty in a civil action brought by
the United States in an appropriate district court of the United States. A
civil penalty under this paragraph may not exceed--
`(A) $100,000 in the case of an individual; or
`(B) $1,000,000 in the case of an applicant other than an individual.
`(3) DEPOSIT OF PENALTIES IN INSURANCE FUNDS- Notwithstanding any other
provision of law, all civil money penalties collected under this section
shall be deposited in the Rural Housing Insurance Fund.
`(4) NONEXCLUSIVENESS OF REMEDIES- This subsection may not be construed
to limit the applicability of any requirements, sanctions, penalties,
or remedies established under any other law. The Secretary shall not be
relieved of any obligation to carry out the requirements of this section
because such other requirements, sanctions, penalties, or remedies apply.
`(f) LIMITATION OF ASSISTANCE- The Secretary shall certify that assistance
provided by the Secretary to any housing project shall not be more than is
necessary to provide affordable housing after taking account of assistance
from all Federal, State, and local sources. The Secretary shall adjust
the amount of assistance provided to an applicant to compensate for any
changes reported under subsection (c).
`(g) REGULATIONS- Not less than 180 days following enactment of this Act,
the Secretary shall promulgate regulations to implement this section.
`(h) DEFINITION- For purposes of this section, the term `assistance'
means any housing grant, loan, guarantee, insurance, rebate, subsidy,
tax credit benefit, or other form of direct or indirect assistance.
`(i) REPORT BY THE SECRETARY- The Secretary shall submit to the Congress,
not later than 180 days following the date of enactment of this section,
a report describing actions taken to carry out this section, including
actions to inform and educate officers and employees of the Department of
Agriculture regarding the provisions of this section.'.
(b) EFFECTIVE DATE- Section 536 of the Housing Act of 1949, as added by
subsection (a), shall take effect on the effective date of regulations
implementing such section.

67323e42ec011d53bf54072ece1579c3e60e0e3d2d41bd2e34e9b542f00ea1b1

TITLE IV

-RURAL HOUSING

Section 515 of the Housing Act of 1949, as amended by section 207, is
amended by adding at the end the following:
`(u) REUSE OF LOAN AUTHORITY- Loan authority that is obligated under
this section but that is not expended due to any action that removes the
original borrower, may be reallocated to a different borrower during the
same fiscal year in which the loan authority was obligated.'.

ce12e63253746f7fcab0807b44cf3700a20a9acefa8f9d2e52135a0f8a641b8c

The purpose of this title is to establish a National Commission on Severely
Distressed Public Housing--
(1) to identify those public housing projects in the Nation that are in
a severe state of distress;
(2) to assess the most promising strategies to improve the condition of
severely distressed public housing projects that have been implemented
by public housing authorities, other Government agencies at the Federal,
State, and local level, public housing tenants, and the private sector;
(3) to develop a national action plan to eliminate by the year 2000 unfit
living conditions in public housing projects determined by the Commission
to be the most severely distressed.

4f375063e37788e9fc821f525a8574452ffd409f5502cc53470e5ccaf0b2bb1f

There is established a commission to be known as the National Commission
on Severely Distressed Public Housing (hereinafter in this title referred
to as the `Commission').

332e4169aea7d0986893308cc3c96e3e14975387d46a7b5a963cd906fb14fea5

(a) APPOINTMENT- (1) The Commission shall be composed of 18 members,
appointed not later than 60 days after amounts are appropriated pursuant
to section 506 or made available from non-Federal sources. The members
shall be as follows:
(A) 6 members to be appointed by the Secretary of Housing and Urban
Development;
(B) 6 members appointed by the Chairman and Ranking Minority Member of the
Subcommittee on Housing and Urban Affairs of the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Chairman and Ranking
Minority Member of the Subcommittee on VA, HUD, and Independent Agencies
of the Committee on Appropriations of the Senate; and
(C) 6 members appointed by the Chairman and Ranking Minority Member of
the Subcommittee on Housing and Community Development of the Committee
on Banking, Finance and Urban Affairs of the House of Representatives and
the Chairman and Ranking Minority Member of the Subcommittee on VA, HUD,
and Independent Agencies of the Committee on Appropriations of the House
of Representatives.
(2) The Secretary and the congressional leaders referred to in paragraph
(1) shall each appoint as member of the Commission--
(A) 2 individuals who are elected public officials at the Federal, State,
or local level;
(B) 2 individuals who are local public housing officials or representatives
of public housing authorities with experience in eliminating unfit living
conditions in severely distressed public housing projects;
(C) 1 individual who is a tenant or a representative of tenants or a tenant
organization; and
(D) 1 individual who is a leader of business or labor or is a distinguished
academic in the field of housing and urban development.
(b) CHAIRPERSON- The Commission shall elect a chairperson from among
members of the Commission.
(c) QUORUM- A majority of the members of the Commission shall constitute
a quorum for the transaction of business.
(d) VOTING- Each member of the Commission shall be entitled to 1 vote,
which shall be equal to the vote of every other member of the Commission.
(e) VACANCIES- Any vacancy on the Commission shall not affect its powers,
but shall be filled in the manner in which the original appointment was made.
(f) PROHIBITION ON ADDITIONAL PAY- Members of the Commission shall serve
without compensation, but shall be reimbursed for travel, subsistence,
and other necessary expenses incurred in the performance of their duties
as members of the Commission.

bd5c4c46e3159c87d0e079f3b4a7b48c6e8d18206e970be08f7a263309de7960

(a) IDENTIFICATION OF SEVERELY DISTRESSED PUBLIC HOUSING PROJECTS- The
Commission shall identify those public housing projects that are in a
severe state of distress, giving special attention to projects that--
(1) require major redesign to correct serious deficiencies in the original
design (including inappropriately high population density), deferred
maintenance, physical deterioration or obsolescence of major systems and
other deficiencies in the physical plant of the project;
(2) are occupied predominantly by families with children who are in a
severe state of distress, characterized by such factors as high rates
of unemployment, teenage pregnancy, single-parent households, long-term
dependency on public assistance and minimal educational achievement;
(3) are locations for recurrent vandalism and criminal activity (including
drug-related criminal activity);
(4) suffer from management deficiencies, including absence of effective
management systems to (A) repair and re-rent vacant units expeditiously;
(B) maintain units and common areas; (C) terminate the tenancy of tenants
engaged in activity that adversely affects the health, safety, and right
to quiet enjoyment of their neighbors; (D) collect rents; (E) encourage
tenant participation and cooperation in management and maintenance; and
(F) maintain adequate security; and
(5) meet such other criteria that the Commission determines to be evidence
of unfit living conditions.
(b) EVALUATION OF ALTERNATIVE STRATEGIES- The Commission shall assess the
most promising strategies to eliminate unfit living conditions in severely
distressed public housing projects that have been implemented by public
housing authorities, other Government agencies at the Federal, State,
and local level, public housing tenants, and the private sector. Such
strategies may include but shall not be limited to--
(1) measures to correct management deficiencies;
(2) the provision of supportive services to project residents, and, if
necessary, the redesign of projects to accommodate such services;
(3) the redesign of projects to reduce density and otherwise eliminate
harmful design elements;
(4) the conversion of projects to mixed-income housing developments; and
(5) the total or partial demolition or disposition of projects. Evaluation
of such strategies shall consider efforts to provide for replacement
of public housing dwelling units that were demolished, disposed of or
otherwise removed from use by low-income persons.
(c) DEVELOPMENT OF NATIONAL ACTION PLAN- The Commission shall establish a
national action plan to eliminate by the year 2000 unfit living conditions in
public housing projects identified in subsection (a). The action plan shall--
(1) specify objectives that the Department of Housing and Urban Development
could achieve in cooperation with public housing authorities, public
housing tenants, and other interested parties;
(2) provide a schedule by which such objectives could be achieved;
(3) recommend any legislative or administrative action that is necessary
to achieve such objectives;
(4) make recommendations regarding any necessary replacement of public
housing; and
(5) calculate, in accordance with the schedule established above, any
impact on Federal expenditures necessary to achieve such objectives.
(d) FINAL REPORT- Not later than 12 months after the Commission is
established pursuant to section 503(a), the Commission shall submit to
the Secretary and to the Congress a final report which shall contain the
information, evaluations, and recommendations specified above.

04da250098c37e36921eba38446508d6b174ad5d31582c669c0fba75884e1c9c

(a) HEARINGS- The Commission may, for the purpose of carrying out this
subtitle, hold such hearings and sit and act at such times and places as
the Commission may find advisable.
(b) RULES AND REGULATIONS- The Commission may adopt such rules and
regulations as may be necessary to establish its procedures and to govern
the manner of its operations, organization and personnel.
(c) Assistance From Federal Agencies-
(1) The Commission may secure directly from any department or agency of the
United States such data and information as the Commission may require for
the purpose of this subtitle, including but not limited to comprehensive
plans submitted by public housing authorities in accordance with section
14 of the United States Housing Act of 1937, and applications submitted by
public housing authorities requesting funds for the major reconstruction
of public housing projects in accordance with section 5 of such Act. Upon
request of the Commission, any such department or agency shall furnish
such data or information. The Commission may acquire data or information
directly from public housing authorities to the same extent the Secretary
could acquire such data or information.
(2) The General Services Administration shall provide to the Commission,
on a reimbursable basis, such administrative support services as the
Commission may request.
(3) Upon the request of the chairperson of the Commission, the Secretary
of Housing and Urban Development shall, to the extent possible and subject
to the discretion of the Secretary, detail any of the personnel of the
Department of Housing and Urban Development, on a nonreimbursable basis,
to assist the Commission in carrying out its duties under this subtitle.
(d) MAILS- The Commission may use the United States mails in the same
manner and under the same conditions as other Federal agencies.
(e) CONTRACTING- The Commission may, to such extent and in such amounts as
are provided in appropriations Acts, enter into contracts with private firms,
institutions, and individuals for the purpose of conducting research or
surveys necessary to enable the Commission to discharge its duties under
this subtitle.
(f) STAFF- (1) The Commission shall appoint an executive director of the
Commission who shall be compensated at a rate fixed by the Commission, but
which shall not exceed the rate established for level V of the Executive
Schedule under title 5, United States Code.
(2) In addition to the executive director, the Commission may appoint and
fix the compensation of such personnel as it deems advisable, in accordance
with the provisions of title 5, United States Code, governing appointments
to the competitive service, and the provisions of chapter 51 and subchapter
III of chapter 53 of such title, relating to classification and General
Schedule pay rates.
(g) ADVISORY COMMITTEE- The Commission shall be considered an advisory
committee within the meaning of the Federal Advisory Committee Act (5
U.S.C. App.).

e05b56870c3346a880ab700a374de336cd27af103fcf7a509e3d8fbac10e4e00

There are authorized to be appropriated to carry out this title not to exceed
$2,000,000 for fiscal year 1990 and $1,000,000 for fiscal year 1991. Funds
appropriated under this section shall remain available until expended.

f0c4f35842b48cbbbda16dbb4968bdd241fbd5e29d12dbe266b579569aa4a2da

The Commission shall terminate upon the expiration of 18 months following
the appointment of all the members under section 503(a).
HAWAIIAN HOUSING

453e18ed3397d3e3edf6849582a26b0254439e74a033fa81ca63470f2955ff85

There is established a Commission to be known as the National Commission
on American Indian, Alaska Native, and Native Hawaiian Housing (hereinafter
in this section referred to as the `Commission").

2bebb99b831aa7da67ed4b05cc6453ac0d166c3383195ee0a125c1361ee657c5

TITLE VI

-NATIONAL COMMISSION ON NATIVE AMERICAN, ALASKA NATIVE, AND NATIVE

(a) APPOINTMENT- (1) The Commission shall be composed of 12 members,
appointed not later than 60 days after amounts are appropriated pursuant
to section 605 of this Act or made available from non-Federal sources. The
members shall be appointed as follows:
(A) 2 members to be appointed by the Secretary of Housing and Urban
Development;
(B) 2 members appointed by the Chairman and the Ranking Minority Member
of the Select Committee on Indian Affairs of the Senate;
(C) 3 members appointed by the Chairman and the Ranking Minority Member
of the Subcommittee on Housing and Community Development of the Committee
on Banking, Finance, and Urban Affairs of the House of Representatives;
(D) 3 members appointed by the Chairman and Ranking Minority Member of
the Subcommittee on Housing and Urban Affairs of the Committee on Banking,
Housing, and Urban Affairs of the Senate;
(E) 1 Native Hawaiian appointed by the Secretary of Housing and Urban
Development; and
(F) 1 Native Hawaiian appointed by the Chairman and Ranking Minority Member
of the Select Committee on Indian Affairs of the Senate.
(2) Except as provided in paragraph (3), the Secretary and the congressional
leaders referred to in subparagraphs (A) through (D) of paragraph (1) shall
appoint as members of the Commission individuals who are elected officials
of Indian tribes, who are officials of Indian housing authorities, or who
have experience in Federal Indian housing programs.
(3) The congressional leaders referred to in subparagraphs (C) and (D)
paragraph (1) shall appoint 1 individual under each such clause with
experience in housing development and finance.
(4) The members appointed under subparagraphs (E) and (F) of paragraph (1)
shall be individuals with experience in the Native Hawaiian community in
housing programs available to beneficiaries of the Hawaiian Homes Commission
Act of 1920.
(b) CHAIRPERSON- The Commission shall elect a chairperson from among the
members of the Commission.
(c) QUORUM- A majority of the members shall constitute a quorum for the
transaction of business.
(d) VOTING- Each member of the Commission shall be entitled to one vote,
which shall be equal to the vote of every other member of the Commission.
(e) VACANCIES- Any vacancy on the Commission shall not affect its powers,
but shall be filled in the original manner in which the appointment was made.
(f) PROHIBITION ON ADDITIONAL PAY- Members on the Commission shall serve
without compensation, but shall be reimbursed for travel, subsistence,
and other necessary expenses incurred in the performance of their duties
as members of the Commission.
(g) TERMINATION- The Commission shall terminate upon the expiration of 18
months after all members of the Commission are appointed under paragraph (1).

00f8151e2c9dae492e2216a039f950d29ab8ca217fae1be11acc549499e424b0

(a) EVALUATION OF CURRENT PROBLEMS- The Commission shall evaluate the
factors currently impeding the development of safe and affordable housing
for American Indians, Alaska Natives, and Native Hawaiians, including
factors related to tribal administrative capacity, property management,
access to financial markets, infrastructure development, and the adequacy of
existing housing programs for Indians, Alaska Natives, and Native Hawaiians.
(b)EVALUATIONOFALTERNATIVESTRATEGIES- The Commission shall assess the most
promising strategies for the development, management, and modernization of
housing for Indians, Alaska Natives, and Native Hawaiians. The Commission
shall, in particular, evaluate housing strategies that have been or could
be carried out by Indian housing authorities, public housing authorities,
other government agencies at the Federal, State and local level, and the
private sector.
(c) DEVELOPMENT OF AN ACTION PLAN- The Commission shall establish an
action plan for American Indian and Alaska Native housing based upon the
assessment in subsections (a) and (b). The action plan shall--
(1) specify objectives that the Department of Housing and Urban Development
could achieve in cooperation with Indian housing authorities, Indian tribes,
Native Hawaiian organizations, and other interested parties;
(2) provide a schedule by which such objectives could be achieved; and
(3) recommend legislative, regulatory, or administrative action necessary
to achieve such objectives.
(d) FINAL REPORT- Not later than 12 months after the appointment of members
of the Commission under section 602(a), the Commission shall submit to
the Secretary and to the Congress a final report which shall contain the
information, evaluations, and recommendations specified above.
(e) DEFINITION- As used in this section, the term `Native Hawaiian
organization' means any organization which is established and controlled
by beneficiaries or eligible beneficiaries under the provisions established
by the Hawaiian Homes Commission Act of 1920.

2b5f1e7c0e0824588cece642bc91b234f40da7a9953d1f82d3728454a6ec60f3

(a) HEARINGS- The Commission may for the purpose of carrying out this
title, hold such hearings and sit and act at such times and places as the
Commission may find advisable.
(b) RULES AND REGULATIONS- The Commission may adopt such rules and
regulations as may be necessary to establish its procedures and to govern
the manner of its operations, organization, and personnel.
(c) ASSISTANCE FROM FEDERAL AGENCIES-
(1) The Commission may secure directly from any department or agency of
the United States such data and information as the Commission may require
for the purpose of this title. Upon request of the Commission, any such
department or agency shall furnish such data or information. The Commission
may require data or information directly from Indian housing authorities
to the same extent the Secretary could acquire such data or information.
(2) The General Services Administration shall provide to the Commission,
on a reimbursable basis, such administrative support services as the
Commission may request.
(3) Upon the request of the chairperson of the Commission, the Secretary
of Housing and Urban Development shall, to the extent possible and subject
to the discretion of the Secretary, detail any of the personnel of the
Department of Housing and Urban Development, on a nonreimbursable basis,
to assist the Commission in carrying out its duties under this title.
(d) MAILS- The Commission may use the United States mails in the same
manner and under the same conditions as other Federal agencies.
(e) CONTRACTING- The Commission may, to such extent and in such amounts as
are provided in appropriations Acts, enter into contracts with private firms,
institutions, and individuals for the purpose of conducting research or
surveys necessary to enable the Commission to discharge its duties under
this title.
(f) STAFF- (1) The Commission shall appoint an executive director of the
Commission who shall be compensated at a rate fixed by the Commission, but
which shall not exceed the rate established for level V of the Executive
Schedule under title 5, United States Code.
(2) In addition to the executive director, the Commission may appoint and
fix the compensation of such personnel as it deems advisable, in accordance
with the provisions of title 5, United States Code, governing appointments
to the competitive service, and the provisions of chapter 51 and subchapter
III of chapter 53 of such title, relating to classification and General
Schedule pay rates.
(3) ADVISORY COMMITTEE- The Commission shall be considered an advisory
committee within the meaning of the Federal Advisory Committee Act (5
U.S.C. App.).

bc92c704fe4d101a8f0d49b9ecec3e08e99c5716b6ceb0318e68913053d019d9

There are authorized to be appropriated not to exceed $500,000 for each
of the fiscal years 1990 and 1991. Any sums so appropriated shall remain
available until expended.

52149b73f9a8b23c80b431526e998bbdcb269a88de6a7ec6aff555173c601f64

UNDER SECTION 312 REHABILITATION LOAN PROGRAM.
(a) IN GENERAL- Whenever with respect to a single family mortgage securing
a loan under section 312 of the Housing Act of 1964, the Secretary of
Housing and Urban Development or its foreclosure agent forecloses in any
Federal or State court or pursuant to a power of sale in a mortgage, the
purchaser at the foreclosure sale shall be entitled to receive a conveyance
of title to, and possession of, the property, subject to any interests
senior to the interests of the Secretary. With respect to properties that
are vacant and abandoned, notwithstanding any State law to the contrary,
there shall be no right of redemption (including all instances any right
to possession based upon any right of redemption) in the mortgagor or any
other person subsequent to the foreclosure sale in connection with such
single family mortgage. The appropriate State official or the trustee,
as the case may be, shall execute and deliver a deed or other appropriate
instrument conveying title to the purchaser at the foreclosure sale,
consistent with applicable procedures in the jurisdiction and without
regard to any such right of redemption.
(b) FORECLOSURE BY OTHERS- Whenever with respect to a single family mortgage
on a property that also has a single family mortgage securing a loan under
section 312 of the Housing Act of 1964, a mortgagee forecloses in any
Federal or State court or pursuant to a power of sale in a mortgage, the
Secretary of Housing and Urban Development, if the Secretary is purchaser
at the foreclosure sale, shall be entitled to receive a conveyance of title
to, and possession of, the property, subject to the interests senior to the
interests of the mortgagee. Notwithstanding any State law to the contrary,
there shall be no right of redemption (including in all instances any
right to possession based upon any right of redemption) if the mortgagor
or any other person subsequent to the foreclosure sale to the Secretary in
connection with a property that secured a single family mortgage for a loan
under section 312 of the Housing Act of 1964. The appropriate State official
or the trustee, as the case may be, shall execute and deliver a deed or
other appropriate instrument conveying title to the Secretary, who is the
purchaser at the foreclosure sale, consistent with applicable procedures
in the jurisdiction and without regard to any such right of redemption.
(c) VERIFICATION OF TITLE- The following actions shall be taken in order
to verify title in the purchaser at the foreclosure sale:
(1) In the case of a judicial foreclosure in any Federal or State court,
there shall be included in the petition and in the judgment of foreclosure
a statement that the foreclosure is in accordance with this subsection and
that there is no right of redemption in the mortgagor or any other person.
(2) In the case of a foreclosure pursuant to a power of sale provision in
the mortgage, the statement required in paragraph (1) shall be included
in the advertisement of the sale and either in the recitals of the deed
or other appropriate instrument conveying title to the purchaser at the
foreclosure sale or in an affidavit or addendum to the deed.
(d) DEFINITIONS- For purposes of this section:
(1) The term `mortgage' means a deed of trust, mortgage, deed to secure
debt, security agreement, or any other form of instrument under which any
interest in property, real, personal, or mixed, or any interest in property,
including leaseholds, life estates, reversionary interests, and any other
estates under applicable State law, is conveyed in trust, mortgaged,
encumbered, pledged, or otherwise rendered subject to a lien, for the
purpose of securing the payment of money or the performance of an obligation.
(2) The term `single family mortgage' means a mortgage that covers property
that includes a 1- to 4-family residence.

d65443c26284f614f76f23804f281093ed00497c8e7edd10e5a79c30b8a9c867

(a) ELIMINATION FROM DEFINITION OF NONENTITLEMENT AREAS- Section 102(a)(7)
of the Housing and Community Development Act of 1974 is amended by striking
the period at the end and inserting the following: `and does not include
Indian tribes.'.
(b) ALLOCATION- Section 106 of the Housing and Community Development Act
of 1974 is amended--
(1) in subsection (a)--
(A) by inserting `and Indian tribes' before the period at the end of the
first sentence; and
(B) by striking the period at the end and inserting the following: `Indian
tribes shall receive grants from such allocation pursuant to subsection
(b)(7).';
(2) in subsection (b)(1), by striking `The' and inserting `After taking
into account the set-aside for Indian tribes under paragraph (7), the';
(3) in subsection (b)(2), by striking `The' and inserting `After taking
into account the set-aside for Indian tribes under paragraph (7), the';
(4) in subsection (b), by adding at the end the following new paragraphs:
`(7)(A) For each fiscal year, the Secretary shall reserve for grants to
Indian tribes, from amounts approved in appropriation Acts under section
103 for grants for the year under subsection (a), not more than 1 percent
of the amounts appropriated under such section.
`(B) The Secretary shall provide for distribution of amounts under this
paragraph to Indian tribes on the basis of a competition conducted pursuant
to specific criteria for the selection of Indian tribes to receive such
amounts. The criteria shall be contained in a regulation promulgated by
the Secretary after notice and public comment.'; and
(5) in subsection (d), by striking paragraph (4).
(c) OFFICE OF INDIAN AND ALASKA NATIVE PROGRAMS- The Secretary of Housing
and Urban Development shall administer grants to Indian tribes under title
I of the Housing and Community Development Act of 1974 through the Office
of Indian and Alaska Native Programs of the Department of Housing and
Urban Development.
(d) REGULATIONS- The Secretary shall issue any regulations necessary to
carry out this section and the amendments made by this section in a manner
and by such time to provide for the effectiveness of such regulations with
respect to amounts appropriated for fiscal year 1991 under section 103 of
the Housing and Community Development Act of 1974.
(e) APPLICABILITY- The amendments made by this section shall apply to
amounts approved in any appropriation Act under section 103 of the Housing
and Community Development Act of 1974 for fiscal year 1991 and each fiscal
year thereafter.

25868296ce389e8ed0f1b5fc340177b1e1e206d5f99a641875cbebbc1e6f2982

(a) EFFECT OF PRIOR COMPARABILITY STUDIES-
(1) IN GENERAL- In any case in which, in implementing section 8(c)(2)
of the United States Housing Act of 1937--
(A) the use of comparability studies by the Secretary of Housing and Urban
Development or the appropriate State agency as an independent limitation on
the amount of rental adjustments resulting from the application of an annual
adjustment factor under such section has resulted in the reduction of the
maximum monthly rent for units covered by the contract or the failure to
increase such contract rent to the full amount otherwise permitted under
the annual adjustment factor, or
(B) an assistance contract requires a project owner to make a request before
becoming eligible for a rent adjustment under the annual adjustment factor
and the project owner certifies that such a request was not made because
of anticipated negative adjustment to the project rents,
for fiscal year 1980, and annually thereafter until regulations implementing
this section take effect, rental adjustments shall be calculated as an
amount equal to the annual adjustment factor multiplied by a figure equal
to the contract rent minus the amount of contract rent attributable to debt
service. Upon the request of the project owner, the Secretary shall pay to
the project owner the amount, if any, by which the total rental adjustment
calculated under the preceding sentence exceeds the total adjustments the
Secretary or appropriate State agency actually approved, except that solely
for purposes of calculating retroactive payments under this subsection, in
no event shall any project owner be paid an amount less than 30 percent of
a figure equal to the aggregate of the annual adjustment factor multiplied
by the full contract rent for each year on or after fiscal year 1980, minus
the sum of the rental payments the Secretary or appropriate State agency
actually approved for those years. The method provided by this subsection
shall be the exclusive method by which retroactive payments, whether or
not requested, may be made for projects subject to this subsection for the
period from fiscal year 1980 until the regulations issued under subsection
(e) take effect. For purposes of this paragraph, `debt service' shall include
interest, principal, and mortgage insurance premium if any.
(2) APPLICABILITY-
(A) IN GENERAL- Subsection (a) shall apply with respect to any use of
comparability studies referred to in such subsection occurring before the
effective date of the regulations issued under subsection (e).
(B) FINAL LITIGATION- Subsection (a) shall not apply to any project with
respect to which litigation regarding the authority of the Secretary to
use comparability studies to limit rental adjustments under section 8(c)(2)
of the United States Housing Act of 1937 has resulted in a judgment before
the effective date of this Act that is final and not appealable (including
any settlement agreement).
(b) 3-YEAR PAYMENTS- The Secretary shall provide the amounts under
subsection (a) over the 3-year period beginning on the effective date of
the regulations issued under subsection (e). The Secretary shall provide
the payments authorized under subsection (a) only to the extent approved
in subsequent appropriations Acts. There are authorized to be appropriated
such sums as may be necessary for this purpose.
(c) COMPARABILITY STUDIES- Section 8(c)(2)(C) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(c)(2)(C) is amended by inserting after the
period at the end of the first sentence the following: `In implementing
the limitation established under the preceding sentence, the Secretary
shall establish regulations for conducting comparability studies for
projects where the Secretary has reason to believe that the application
of the formula adjustments under subparagraph (A) would result in such
material differences. The Secretary shall conduct such studies upon the
request of any owner of any project, or as the Secretary determines to be
appropriate by establishing, to the extent practicable, a modified annual
adjustment factor for such market area, as the Secretary shall designate,
that is geographically smaller than the applicable housing area used for the
establishment of the annual adjustment factor under subparagraph (A). The
Secretary shall establish such modified annual adjustment factor on the basis
of the results of a study conducted by the Secretary of the rents charged,
and any change in such rents over the previous year, for assisted units and
unassisted units of similar quality, type, and age in the smaller market
area. Where the Secretary determines that such modified annual adjustment
factor cannot be established or that such factor when applied to a particular
project would result in material differences between the rents charged for
assisted units and unassisted units of similar quality, type, and age in
the same market area, the Secretary may apply an alternative methodology
for conducting comparability studies in order to establish rents that are
not materially different from rents charged for comparable unassisted units.
(d) DETERMINATION OF CONTRACT RENT- (1) The Secretary shall upon the request
of the project owner, make a one-time determination of the contract rent
for each project owner referred to in subsection (a). The contract rent
shall be the greater of the contract rent--
(A) currently approved by the Secretary under section 8(c)(2) of the United
States Housing Act of 1937, or
(B) calculated in accordance with the first sentence of subsection (a)(1).
(2) All adjustments in contract rents under section 8(c)(2) of the United
States Housing Act of 1937, including adjustments involving projects referred
to in subsection (a), that occur beginning with the first anniversary date of
the contract after the regulations issued under subsection (e) take effect
shall be made in accordance with the annual adjustment and comparability
provisions of sections 8(c)(2)(A) and 8(c)(2)(C) of such Act, respectively,
using the one-time contract rent determination under paragraph (1).
(e) REGULATIONS- The Secretary shall issue regulations to carry out this
section and the amendments made by this section, including the amendments
made by subsection (c) with regard to annual adjustment factors and
comparability studies. The Secretary shall issue such regulations not
later than the expiration of the 180-day period beginning on the date of
the enactment of this Act.
(f) REPORT- Not later than March 1, 1990, the Secretary shall report to the
Congress on the feasibility and desirability, and the budgetary, legal,
and administrative aspects, of adjusting contract rents under section
8(c)(2)(C) of the United States Housing Act of 1937 on the basis of any
alternative methodologies that are simpler in application than individual
project comparability studies.
(g) TECHNICAL AMENDMENT- The first sentence of section 8(c)(2)(C) of the
United States Housing Act of 1937 is amended by inserting `, type,' after
`quality'.
Attest:
Secretary.
HR 1 EAS----2
HR 1 EAS----3
HR 1 EAS----4
HR 1 EAS----5
HR 1 EAS----6
HR 1 EAS----7
HR 1 EAS----8
HR 1 EAS----9
HR 1 EAS----10
HR 1 EAS----11
HR 1 EAS----12
HR 1 EAS----13

3095f5ec828260b3a0383fbbbe39b815b41ad4cb8e1480107b81fdb13e3f63ff

Department of Housing and Urban Development Reform Act of 1989

Other Sections