[Congressional Bills 105th Congress]
[From the U.S. Government Printing Office]
[H.R. 2158 Enrolled Bill (ENR)]
H.R.2158
One Hundred Fifth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, one thousand nine hundred and ninety-seven
An Act
Making appropriations for the Departments of Veterans Affairs and
Housing and Urban Development, and for sundry independent agencies,
commissions, corporations, and offices for the fiscal year ending
September 30, 1998, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the following sums
are appropriated, out of any money in the Treasury not otherwise
appropriated, for the Departments of Veterans Affairs and Housing and
Urban Development, and for sundry independent agencies, commissions,
corporations, and offices for the fiscal year ending September 30,
1998, and for other purposes, namely:
TITLE I
DEPARTMENT OF VETERANS AFFAIRS
Veterans Benefits Administration
compensation and pensions
(including transfers of funds)
For the payment of compensation benefits to or on behalf of
veterans and a pilot program for disability examinations as authorized
by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61);
pension benefits to or on behalf of veterans as authorized by law (38
U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and burial
benefits, emergency and other officers' retirement pay, adjusted-
service credits and certificates, payment of premiums due on commercial
life insurance policies guaranteed under the provisions of Article IV
of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended, and
for other benefits as authorized by law (38 U.S.C. 107, 1312, 1977, and
2106, chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat.
122, 123; 45 Stat. 735; 76 Stat. 1198); $19,932,997,000, to remain
available until expended: Provided, That not to exceed $26,380,000 of
the amount appropriated shall be reimbursed to ``General operating
expenses'' and ``Medical care'' for necessary expenses in implementing
those provisions authorized in the Omnibus Budget Reconciliation Act of
1990, and in the Veterans' Benefits Act of 1992 (38 U.S.C. chapters 51,
53, and 55), the funding source for which is specifically provided as
the ``Compensation and pensions'' appropriation: Provided further, That
such sums as may be earned on an actual qualifying patient basis, shall
be reimbursed to ``Medical facilities revolving fund'' to augment the
funding of individual medical facilities for nursing home care provided
to pensioners as authorized by the Veterans' Benefits Act of 1992 (38
U.S.C. chapter 55).
readjustment benefits
For the payment of readjustment and rehabilitation benefits to or
on behalf of veterans as authorized by 38 U.S.C. chapters 21, 30, 31,
34, 35, 36, 39, 51, 53, 55, and 61, $1,366,000,000, to remain available
until expended: Provided, That funds shall be available to pay any
court order, court award or any compromise settlement arising from
litigation involving the vocational training program authorized by
section 18 of Public Law 98-77, as amended.
veterans insurance and indemnities
For military and naval insurance, national service life insurance,
servicemen's indemnities, service-disabled veterans insurance, and
veterans mortgage life insurance as authorized by 38 U.S.C. chapter 19;
70 Stat. 887; 72 Stat. 487, $51,360,000, to remain available until
expended.
veterans housing benefit program fund program account
(including transfer of funds)
For the cost of direct and guaranteed loans, such sums as may be
necessary to carry out the program, as authorized by 38 U.S.C. chapter
37, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
during fiscal year 1998, within the resources available, not to exceed
$300,000 in gross obligations for direct loans are authorized for
specially adapted housing loans: Provided further, That during 1998 any
moneys that would be otherwise deposited into or paid from the Loan
Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or the Direct
Loan Revolving Fund shall be deposited into or paid from the Veterans
Housing Benefit Program Fund: Provided further, That any balances in
the Loan Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or
the Direct Loan Revolving Fund on the effective date of this Act may be
transferred to and merged with the Veterans Housing Benefit Program
Fund.
In addition, for administrative expenses to carry out the direct
and guaranteed loan programs, $160,437,000, which may be transferred to
and merged with the appropriation for ``General operating expenses''.
education loan fund program account
(including transfer of funds)
For the cost of direct loans, $1,000, as authorized by 38 U.S.C.
3698, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize gross obligations for the
principal amount of direct loans not to exceed $3,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, $200,000, which may be transferred to and merged
with the appropriation for ``General operating expenses''.
vocational rehabilitation loans program account
(including transfer of funds)
For the cost of direct loans, $44,000, as authorized by 38 U.S.C.
chapter 31, as amended: Provided, That such costs, including the cost
of modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize gross obligations for the
principal amount of direct loans not to exceed $2,278,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, $388,000, which may be transferred to and merged
with the appropriation for ``General operating expenses''.
Native American Veteran Housing Loan Program Account
(including transfer of funds)
For administrative expenses to carry out the direct loan program
authorized by 38 U.S.C. chapter 37, subchapter V, as amended, $515,000,
which may be transferred to and merged with the appropriation for
``General operating expenses''.
Veterans Health Administration
medical care
(including transfer of funds)
For necessary expenses for the maintenance and operation of
hospitals, nursing homes, and domiciliary facilities; for furnishing,
as authorized by law, inpatient and outpatient care and treatment to
beneficiaries of the Department of Veterans Affairs, including care and
treatment in facilities not under the jurisdiction of the Department;
and furnishing recreational facilities, supplies, and equipment;
funeral, burial, and other expenses incidental thereto for
beneficiaries receiving care in the Department; administrative expenses
in support of planning, design, project management, real property
acquisition and disposition, construction and renovation of any
facility under the jurisdiction or for the use of the Department;
oversight, engineering and architectural activities not charged to
project cost; repairing, altering, improving or providing facilities in
the several hospitals and homes under the jurisdiction of the
Department, not otherwise provided for, either by contract or by the
hire of temporary employees and purchase of materials; uniforms or
allowances therefor, as authorized by 5 U.S.C. 5901-5902; aid to State
homes as authorized by 38 U.S.C. 1741; administrative and legal
expenses of the Department for collecting and recovering amounts owed
the Department as authorized under 38 U.S.C. chapter 17, and the
Federal Medical Care Recovery Act, 42 U.S.C. 2651 et seq.; and not to
exceed $8,000,000 to fund cost comparison studies as referred to in 38
U.S.C. 8110(a)(5); $17,057,396,000, plus reimbursements: Provided, That
of the funds made available under this heading, $570,000,000 is for the
equipment and land and structures object classifications only, which
amount shall not become available for obligation until August 1, 1998,
and shall remain available until September 30, 1999: Provided further,
That of the amount made available under this heading, not to exceed
$5,000,000 shall be for a study on the cost-effectiveness of
contracting with local hospitals in east central Florida for the
provision of non-emergent inpatient health care needs of veterans.
In addition, in conformance with Public Law 105-33 establishing the
Department of Veterans Affairs Medical Care Collections Fund, such sums
as may be deposited to such Fund pursuant to 38 U.S.C. 1729A may be
transferred to this account, to remain available until expended for the
purposes of this account.
medical and prosthetic research
For necessary expenses in carrying out programs of medical and
prosthetic research and development as authorized by 38 U.S.C. chapter
73, to remain available until September 30, 1999, $272,000,000, plus
reimbursements.
medical administration and miscellaneous operating expenses
For necessary expenses in the administration of the medical,
hospital, nursing home, domiciliary, construction, supply, and research
activities, as authorized by law; administrative expenses in support of
planning, design, project management, architectural, engineering, real
property acquisition and disposition, construction and renovation of
any facility under the jurisdiction or for the use of the Department of
Veterans Affairs, including site acquisition; engineering and
architectural activities not charged to project cost; and research and
development in building construction technology; $59,860,000, plus
reimbursements.
general post fund, national homes
(including transfer of funds)
For the cost of direct loans, $7,000, as authorized by Public Law
102-54, section 8, which shall be transferred from the ``General post
fund'': Provided, That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congressional Budget
Act of 1974, as amended: Provided further, That these funds are
available to subsidize gross obligations for the principal amount of
direct loans not to exceed $70,000.
In addition, for administrative expenses to carry out the direct
loan programs, $54,000, which shall be transferred from the ``General
post fund'', as authorized by Public Law 102-54, section 8.
Departmental Administration
general operating expenses
For necessary operating expenses of the Department of Veterans
Affairs, not otherwise provided for, including uniforms or allowances
therefor; not to exceed $25,000 for official reception and
representation expenses; hire of passenger motor vehicles; and
reimbursement of the General Services Administration for security guard
services, and the Department of Defense for the cost of overseas
employee mail; $786,135,000: Provided, That funds under this heading
shall be available to administer the Service Members Occupational
Conversion and Training Act: Provided further, That none of the funds
made available under this heading may be used for the relocation of the
loan guaranty divisions of the Department of Veterans Affairs Regional
Office in St. Petersburg, Florida to the Department of Veterans Affairs
Regional Office in Atlanta, Georgia.
national cemetery system
For necessary expenses for the maintenance and operation of the
National Cemetery System, not otherwise provided for, including
uniforms or allowances therefor; cemeterial expenses as authorized by
law; purchase of three passenger motor vehicles for use in cemeterial
operations; and hire of passenger motor vehicles, $84,183,000.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended,
$31,013,000.
Construction, Major Projects
For constructing, altering, extending and improving any of the
facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, or for any of the purposes set forth in sections 316,
2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38,
United States Code, including planning, architectural and engineering
services, maintenance or guarantee period services costs associated
with equipment guarantees provided under the project, services of
claims analysts, offsite utility and storm drainage system construction
costs, and site acquisition, where the estimated cost of a project is
$4,000,000 or more or where funds for a project were made available in
a previous major project appropriation, $177,900,000, to remain
available until expended: Provided, That the $32,100,000 provided under
this heading in Public Law 104-204 for the replacement hospital at
Travis Air Force Base, Fairfield, California, shall not be obligated
for that purpose but shall be available for any project approved by the
Congress in the budgetary process: Provided further, That except for
advance planning of projects funded through the advance planning fund
and the design of projects funded through the design fund, none of
these funds shall be used for any project which has not been considered
and approved by the Congress in the budgetary process: Provided
further, That funds provided in this appropriation for fiscal year
1998, for each approved project shall be obligated: (1) by the awarding
of a construction documents contract by September 30, 1998; and (2) by
the awarding of a construction contract by September 30, 1999: Provided
further, That the Secretary shall promptly report in writing to the
Committees on Appropriations any approved major construction project in
which obligations are not incurred within the time limitations
established above: Provided further, That no funds from any other
account except the ``Parking revolving fund'', may be obligated for
constructing, altering, extending, or improving a project which was
approved in the budget process and funded in this account until one
year after substantial completion and beneficial occupancy by the
Department of Veterans Affairs of the project or any part thereof with
respect to that part only.
construction, minor projects
For constructing, altering, extending, and improving any of the
facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, including planning, architectural and engineering
services, maintenance or guarantee period services costs associated
with equipment guarantees provided under the project, services of
claims analysts, offsite utility and storm drainage system construction
costs, and site acquisition, or for any of the purposes set forth in
sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122
of title 38, United States Code, where the estimated cost of a project
is less than $4,000,000; $175,000,000, to remain available until
expended, along with unobligated balances of previous ``Construction,
minor projects'' appropriations which are hereby made available for any
project where the estimated cost is less than $4,000,000: Provided,
That funds in this account shall be available for: (1) repairs to any
of the nonmedical facilities under the jurisdiction or for the use of
the Department which are necessary because of loss or damage caused by
any natural disaster or catastrophe; and (2) temporary measures
necessary to prevent or to minimize further loss by such causes.
parking revolving fund
For the parking revolving fund as authorized by 38 U.S.C. 8109,
income from fees collected, to remain available until expended, which
shall be available for all authorized expenses except operations and
maintenance costs, which will be funded from ``Medical care''.
grants for construction of state extended care facilities
For grants to assist States to acquire or construct State nursing
home and domiciliary facilities and to remodel, modify or alter
existing hospital, nursing home and domiciliary facilities in State
homes, for furnishing care to veterans as authorized by 38 U.S.C. 8131-
8137, $80,000,000, to remain available until expended.
grants for the construction of state veteran cemeteries
For grants to aid States in establishing, expanding, or improving
State veteran cemeteries as authorized by 38 U.S.C. 2408, $10,000,000,
to remain available until expended.
administrative provisions
(including transfer of funds)

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and pensions'', ``Readjustment benefits'', and ``Veterans insurance and
indemnities'' may be transferred to any other of the mentioned
appropriations.

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Affairs for fiscal year 1998 for salaries and expenses shall be
available for services authorized by 5 U.S.C. 3109.

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Veterans Affairs (except the appropriations for ``Construction, major
projects'', ``Construction, minor projects'', and the ``Parking
revolving fund'') shall be available for the purchase of any site for
or toward the construction of any new hospital or home.

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Veterans Affairs shall be available for hospitalization or examination
of any persons (except beneficiaries entitled under the laws bestowing
such benefits to veterans, and persons receiving such treatment under 5
U.S.C. 7901-7904 or 42 U.S.C. 5141-5204), unless reimbursement of cost
is made to the ``Medical care'' account at such rates as may be fixed
by the Secretary of Veterans Affairs.

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Affairs for fiscal year 1998 for ``Compensation and pensions'',
``Readjustment benefits'', and ``Veterans insurance and indemnities''
shall be available for payment of prior year accrued obligations
required to be recorded by law against the corresponding prior year
accounts within the last quarter of fiscal year 1997.

2ddaf3e955060578488479942dc44cadbd0d7322e7372eecb9dc368ecf91ccbf

Veterans Affairs for fiscal year 1998 shall be available to pay prior
year obligations of corresponding prior year appropriations accounts
resulting from title X of the Competitive Equality Banking Act, Public
Law 100-86, except that if such obligations are from trust fund
accounts they shall be payable from ``Compensation and pensions''.

c89fec7b8c6d6e80f6f9c1ec4b5d3561389ade159116bb64018510e520092dd4

year 1998, the Secretary of Veterans Affairs shall, from the National
Service Life Insurance Fund (38 U.S.C. 1920), the Veterans' Special
Life Insurance Fund (38 U.S.C. 1923), and the United States Government
Life Insurance Fund (38 U.S.C. 1955), reimburse the ``General operating
expenses'' account for the cost of administration of the insurance
programs financed through those accounts: Provided, That reimbursement
shall be made only from the surplus earnings accumulated in an
insurance program in fiscal year 1998, that are available for dividends
in that program after claims have been paid and actuarially determined
reserves have been set aside: Provided further, That if the cost of
administration of an insurance program exceeds the amount of surplus
earnings accumulated in that program, reimbursement shall be made only
to the extent of such surplus earnings: Provided further, That the
Secretary shall determine the cost of administration for fiscal year
1998, which is properly allocable to the provision of each insurance
program and to the provision of any total disability income insurance
included in such insurance program.

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Act (8 U.S.C. 1184(l)(1)(D)) (as added by section 220 of the
Immigration and Nationality Technical Corrections Act of 1994 and
redesignated as subsection (l) by section 671(a)(3)(A) of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996) is amended
by inserting before the period at the end the following: ``, except
that, in the case of a request by the Department of Veterans Affairs,
the alien shall not be required to practice medicine in a geographic
area designated by the Secretary''.

b1fd98da59e86d62177c1606dce9c030e6d22af69b86a33a2effa427f0ced8a8

52761b9da44860557773e45901dc960bf3bae747857f41ce6cfcf49928551ee5

Housing.--Section 1002(d) of Public Law 104-19 is amended by striking
``1997'' and inserting ``1998''.
(b) Streamlining Section 8 Tenant-Based Assistance.-- Section
203(d) of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996, is
amended by striking ``fiscal years 1996 and 1997'' and inserting
``fiscal years 1996, 1997, and 1998''.
(c) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the United
States Housing Act of 1937 is amended--
(1) in the third sentence, by striking ``fiscal year 1997'' and
inserting ``fiscal years 1997 and 1998''; and
(2) in the last sentence, by striking ``fiscal year 1997'' and
inserting ``fiscal years 1997 and 1998''.
(d) Public and Assisted Housing Rents, Income Adjustments and
Preferences.--
(1) Section 402(a) of The Balanced Budget Downpayment Act, I is
amended by striking ``fiscal year 1997'' and inserting ``fiscal
years 1997 and 1998''.
(2) Section 402(f) of The Balanced Budget Downpayment Act, I is
amended by striking ``fiscal years 1996 and 1997'' and inserting
``fiscal years 1996, 1997, and 1998''.

c3f770044977e130b8ea6a692e062889ebdff602f61aa4c7c3a483fa60a73577

403(c) of The Balanced Budget Downpayment Act, I is amended--
(1) by striking ``fiscal years 1996 and 1997'' and inserting
``fiscal years 1996, 1997, and 1998'';
(2) by striking ``1996 and October'' and inserting ``1996,
October''; and
(3) by inserting before the semicolon the following: ``and
October 1, 1998 for assistance made available during fiscal year
1998''.

046cebdf12a60905a96a819bf92804f9162201513dbf17a221c9d11b91606c23

Block Grant to the State of Illinois which is administered by the State
of Illinois Department of Commerce and Community Affairs (grant number
B-96-DC-170001) and which, in turn, was granted by the Illinois
Department of Commerce and Community Affairs to the city of Oglesby,
Illinois, located in LaSalle County, Illinois (State of Illinois
Department of Commerce and Community Affairs grant number 96-24104),
for the purpose of providing infrastructure for a warehouse in Oglesby,
Illinois, is exempt from the provisions of section 104(g)(2), (g)(3),
and (g)(4) of title I of the Housing and Community Development Act of
1974, as amended.

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amounts of budget authority, or in lieu thereof 50 percent of the cash
amounts associated with such budget authority, that are recaptured from
projects described in section 1012(a) of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988 (Public Law 100-628; 102
Stat. 3224, 3268) shall be rescinded, or in the case of cash, shall be
remitted to the Treasury, and such amounts of budget authority or cash
recaptured and not rescinded or remitted to the Treasury shall be used
by State housing finance agencies or local governments or local housing
agencies with projects approved by the Secretary of Housing and Urban
Development for which settlement occurred after January 1, 1992, in
accordance with such section. Notwithstanding the previous sentence,
the Secretary may award up to 15 percent of the budget authority or
cash recaptured and not rescinded or remitted to the Treasury to
provide project owners with incentives to refinance their project at a
lower interest rate.

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United States Housing Act of 1937, as amended by section 201 of this
title, is further amended by inserting the following new sentences at
the end: ``In establishing annual adjustment factors for units in new
construction and substantial rehabilitation projects, the Secretary
shall take into account the fact that debt service is a fixed expense.
The immediately foregoing sentence shall be effective only during
fiscal year 1998.''.

0ce3bcb5de691bf50c1279f01c13bd0d1deed17a6ee8d342bfe4c7896c2a076d

other provision of law, the $7,100,000 appropriated for an industrial
park at 18th Street and Indiana Avenue shall be made available by the
Secretary instead to 18th and Vine for rehabilitation and
infrastructure development associated with the ``Negro Leagues Baseball
Museum'' and the jazz museum.

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available under this Act may be used during fiscal year 1998 to
investigate or prosecute under the Fair Housing Act any otherwise
lawful activity engaged in by one or more persons, including the filing
or maintaining of a nonfrivolous legal action, that is engaged in
solely for the purpose of achieving or preventing action by a
government official or entity, or a court of competent jurisdiction.

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Rulemaking.--Notwithstanding any other provision of law, for fiscal
year 1998 and for all fiscal years thereafter, the Secretary of Housing
and Urban Development shall maintain all current requirements under
part 10 of the Department of Housing and Urban Development regulations
(24 CFR part 10) with respect to the Department's policies and
procedures for the promulgation and issuance of rules, including the
use of public participation in the rulemaking process.

00e2660da53b0a821767bf436667995c27ae8960200d2ab74fe0da0ace8bf189

year 1998, States and entitlement communities may use funds allocated
under the community development block grants program under title I of
the Housing and Community Development Act of 1974 for environmental
cleanup and economic development activities related to Brownfields
projects in conjunction with the appropriate environmental regulatory
agencies, as if such activities were eligible under section 105(a) of
such Act.

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Section 541(a) of the National Housing Act is amended--
(1) in the section heading, by adding ``and health care
facilities'' at the end; and
(2) in subsection (a)--
(A) by inserting ``or a health care facility (including a
nursing home, intermediate care facility, or board and care
home (as those terms are defined in section 232 of this Act), a
hospital (as that term is defined in section 242 of this Act),
or a group practice facility (as that term is defined in
section 1106 of this Act))'' after ``1978''; and
(B) by inserting ``or for keeping the health care facility
operational to serve community needs,'' after ``character of
the project,''.

51f3016268115ece7b5c53ae8f04295eeae34d5610ad48ee6ca264fef5f240ea

National Housing Act is amended by striking ``fiscal year 1997'' in
paragraph (10)(A) and inserting ``fiscal years 1997 and 1998''.

2a5f9dc04ad8ecdbe45d68a8ba849587c480d90d3685509dc52381d6f2f7220f

law, including the July 22, 1996 Notice of Funding Availability (61
Fed. Reg. 38024), the demolition of units at developments funded under
the Notice of Funding Availability shall be at the option of the New
York City Housing Authority and the assistance awarded shall be
allocated by the public housing agency among other eligible activities
under the HOPE VI program and without the development costs limitations
of the Notice, provided that the public housing agency shall not exceed
the total cost limitations for the public housing agency, as provided
by the Department of Housing and Urban Development.

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Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997, is amended by inserting
after ``owned by the Secretary'' the following: ``, including, for
fiscal years 1997 and 1998, the provision of grants and loans from the
General Insurance Fund (12 U.S.C. 1735c) for the necessary costs of
rehabilitation or demolition,''.

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217(b)(3) of the Cranston-Gonzalez National Affordable Housing Act is
amended by striking ``only those jurisdictions that are allocated an
amount of $500,000 or greater shall receive an allocation'' and
inserting the following: ``jurisdictions that are allocated an amount
of $500,000 or more, and participating jurisdictions (other than
consortia that fail to renew the membership of all of their member
jurisdictions) that are allocated an amount less than $500,000, shall
receive an allocation''.

53da2459da1f1a19d54906eaa4eb3427f6605754f3caaa9c58fc489b85e48f4b

law, the Secretary of Housing and Urban Development may provide tenant-
based assistance to eligible tenants of a project insured under either
section 221(d)(3) or 236 of the National Housing Act in the same manner
as if the owner had prepaid the insured mortgage to the extent
necessary to minimize any rent increases or to prevent displacement of
low-income tenants in accordance with a transaction approved by the
Secretary provided that the rents are no higher than the published
section 8 fair market rents, as of the date of enactment, during the
tenants' occupancy of the property.

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National Housing Act is amended by striking ``fifty years from the date
the mortgage was executed'' and inserting ``ten years to run beyond the
maturity date of the mortgage''.

5df7c6dc924480ca82d79d0cdb6073d2b17f33adbf41d9f9b27d449d065f3c3e

Eligibility.--Notwithstanding section 854(c)(1)(A) of the AIDS Housing
Opportunity Act (42 U.S.C. 12903(c)(1)(A)), from any amounts made
available under this title for fiscal year 1998 that are allocated
under such section, the Secretary of Housing and Urban Development
shall allocate and make a grant, in the amount determined under
subsection (b), for any State that--
(1) received an allocation for fiscal year 1997 under clause
(ii) of such section;
(2) is not otherwise eligible for an allocation for fiscal year
1998 under such clause (ii) because the State does not have the
number of cases of acquired immunodeficiency syndrome required
under such clause; and
(3) would meet such requirement if the cases in the
metropolitan statistical area for any city within the State, which
city was not eligible for an allocation for fiscal year 1997 under
clause (i) of such section but is eligible for an allocation for
fiscal year 1998 under such clause, were considered to be cases
outside of metropolitan statistical areas described in clause (i)
of such section.
(b) Amount.--The amount of the allocation and grant for any State
described in subsection (a) shall be the amount that is equal to the
lesser of--
(1) the difference between--
(A) the total amount allocated for such State under section
854(c)(1)(A)(ii) of the AIDS Housing Opportunity Act for fiscal
year 1997; and
(B) the total amount allocated for the city described in
subsection (a)(3) of this section under section 854(c)(1)(A)(i)
of such Act for fiscal year 1998 (from amounts made available
under this title); and
(2) $300,000.

2a29bafb898eca54c68169ddd31cb966b69c0bbcef9a917dd99724032f812c39

1da68b7bff693b85edeafb833f8ead3fc57721c72ec00701c48227549b6abb35

are expendable for travel expenses and no specific limitation has been
placed thereon, the expenditures for such travel expenses may not
exceed the amounts set forth therefore in the budget estimates
submitted for the appropriations: Provided, That this provision does
not apply to accounts that do not contain an object classification for
travel: Provided further, That this section shall not apply to travel
performed by uncompensated officials of local boards and appeal boards
of the Selective Service System; to travel performed directly in
connection with care and treatment of medical beneficiaries of the
Department of Veterans Affairs; to travel performed in connection with
major disasters or emergencies declared or determined by the President
under the provisions of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act; to travel performed by the Offices of
Inspector General in connection with audits and investigations; or to
payments to interagency motor pools where separately set forth in the
budget schedules: Provided further, That if appropriations in titles I,
II, and III exceed the amounts set forth in budget estimates initially
submitted for such appropriations, the expenditures for travel may
correspondingly exceed the amounts therefore set forth in the estimates
in the same proportion.

d345cdda2bf038f7932455859690ee60f84c116b704e79cc4d176506f18beac0

TITLE IV

-GENERAL PROVISIONS

expenses of the Department of Housing and Urban Development and the
Selective Service System shall be available in the current fiscal year
for purchase of uniforms, or allowances therefor, as authorized by 5
U.S.C. 5901-5902; hire of passenger motor vehicles; and services as
authorized by 5 U.S.C. 3109.

8e3e995d1562b5c2188d08af638168f323426cec689470b63f5fb719e2a99fac

subject to the Government Corporation Control Act or section 402 of the
Housing Act of 1950 shall be available, without regard to the
limitations on administrative expenses, for legal services on a
contract or fee basis, and for utilizing and making payment for
services and facilities of Federal National Mortgage Association,
Government National Mortgage Association, Federal Home Loan Mortgage
Corporation, Federal Financing Bank, Federal Reserve banks or any
member thereof, Federal Home Loan banks, and any insured bank within
the meaning of the Federal Deposit Insurance Corporation Act, as
amended (12 U.S.C. 1811-1831).

103b711c02546b95ed2ae21bd24f87d8baa210d682280d3ec470dd80da2ae471

remain available for obligation beyond the current fiscal year unless
expressly so provided herein.

7770463076f9f59a2cd4c29b71d116e217918273a4ebbc20184321af00939d06

(1) pursuant to a certification of an officer or employee of
the United States unless--
(A) such certification is accompanied by, or is part of, a
voucher or abstract which describes the payee or payees and the
items or services for which such expenditure is being made; or
(B) the expenditure of funds pursuant to such
certification, and without such a voucher or abstract, is
specifically authorized by law; and
(2) unless such expenditure is subject to audit by the General
Accounting Office or is specifically exempt by law from such audit.

063873ebc2862c4e7ec3fbab03d7a916f01d7b90376856db94724a88beb0cdf1

or agency may be expended for the transportation of any officer or
employee of such department or agency between his domicile and his
place of employment, with the exception of any officer or employee
authorized such transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.

35048218199130dc62a310135b7becd0d7fd53843052ddf0f343ccd69cd18f3c

payment, through grants or contracts, to recipients that do not share
in the cost of conducting research resulting from proposals not
specifically solicited by the Government: Provided, That the extent of
cost sharing by the recipient shall reflect the mutuality of interest
of the grantee or contractor and the Government in the research.

fa854809d1b6836471fdb1e34d58da9c4cba5a93c5d470afe13c4c44a77773c1

through grants, to pay or to provide reimbursement for payment of the
salary of a consultant (whether retained by the Federal Government or a
grantee) at more than the daily equivalent of the rate paid for level
IV of the Executive Schedule, unless specifically authorized by law.

27076fd6dbc5dd757c4058123b668553f8d551fccd6ec60038e036b5b510b978

pay the expenses of, or otherwise compensate, non-Federal parties
intervening in regulatory or adjudicatory proceedings. Nothing herein
affects the authority of the Consumer Product Safety Commission
pursuant to section 7 of the Consumer Product Safety Act (15 U.S.C.
2056 et seq.).

5998a6c9fe602df9a4abef030e6fd3b1161ebfa86f25f997019bb6686f59d177

an existing Executive order issued pursuant to an existing law, the
obligation or expenditure of any appropriation under this Act for
contracts for any consulting service shall be limited to contracts
which are: (1) a matter of public record and available for public
inspection; and (2) thereafter included in a publicly available list of
all contracts entered into within 24 months prior to the date on which
the list is made available to the public and of all contracts on which
performance has not been completed by such date. The list required by
the preceding sentence shall be updated quarterly and shall include a
narrative description of the work to be performed under each such
contract.

0ef44fc00d965e1f1a2ace88e7cb9c3b31de39e88ed541437b9d0015927dc0fd

appropriation contained in this Act shall be obligated or expended by
any executive agency, as referred to in the Office of Federal
Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for
services unless such executive agency: (1) has awarded and entered into
such contract in full compliance with such Act and the regulations
promulgated thereunder; and (2) requires any report prepared pursuant
to such contract, including plans, evaluations, studies, analyses and
manuals, and any report prepared by the agency which is substantially
derived from or substantially includes any report prepared pursuant to
such contract, to contain information concerning: (A) the contract
pursuant to which the report was prepared; and (B) the contractor who
prepared the report pursuant to such contract.

1b8ca4a5fee7e9d5792e3d1289737230cc2c34ffecafc1c8fd5aff475a57dfd6

funds provided in this Act to any department or agency shall be
obligated or expended to provide a personal cook, chauffeur, or other
personal servants to any officer or employee of such department or
agency.

478878ba25a30dfdee714aa89e89f770dca64703d7a743afe9c320a7c0b1fe13

or agency shall be obligated or expended to procure passenger
automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles
per gallon average of less than 22 miles per gallon.

c2bb608a1cf1d0c4111ced93a0574de877799fc270577609beedf42828523f8b

shall be used to enter into any new lease of real property if the
estimated annual rental is more than $300,000 unless the Secretary
submits, in writing, a report to the Committees on Appropriations of
the Congress and a period of 30 days has expired following the date on
which the report is received by the Committees on Appropriations.

5baa961c0ad80ca38b6a24920b9688e800d96d85022880edaea627366bb8360f

extent practicable, all equipment and products purchased with funds
made available in this Act should be American-made.
(b) In providing financial assistance to, or entering into any
contract with, any entity using funds made available in this Act, the
head of each Federal agency, to the greatest extent practicable, shall
provide to such entity a notice describing the statement made in
subsection (a) by the Congress.

614d7d451bfb2b9eced8dbaf5d77f1d250f4914d315634f87b702f0b80fe9076

implement any cap on reimbursements to grantees for indirect costs,
except as published in Office of Management and Budget Circular A-21.

08f184c050340112435691a57b8315c3f372f2ed629397fb1d49baa9faf7e5d9

raises for programs funded by this Act shall be absorbed within the
levels appropriated in this Act.

9f5c43c544bd70af57e63e0471b4c7dfdb8bffe433fc3e4798261ce0973e494f

for any program, project, or activity, when it is made known to the
Federal entity or official to which the funds are made available that
the program, project, or activity is not in compliance with any Federal
law relating to risk assessment, the protection of private property
rights, or unfunded mandates.

94392877959816a0247c06bf57d27707e6ad14dfdb4470ef96e18be77757676a

and Urban Development which are subject to the Government Corporation
Control Act, as amended, are hereby authorized to make such
expenditures, within the limits of funds and borrowing authority
available to each such corporation or agency and in accord with law,
and to make such contracts and commitments without regard to fiscal
year limitations as provided by section 104 of the Act as may be
necessary in carrying out the programs set forth in the budget for 1998
for such corporation or agency except as hereinafter provided:
Provided, That collections of these corporations and agencies may be
used for new loan or mortgage purchase commitments only to the extent
expressly provided for in this Act (unless such loans are in support of
other forms of assistance provided for in this or prior appropriations
Acts), except that this proviso shall not apply to the mortgage
insurance or guaranty operations of these corporations, or where loans
or mortgage purchases are necessary to protect the financial interest
of the United States Government.

6da3743501b346f0ff3646f67035ea90d39d4ce5ddc541dea622e9d9983c306d

Pollution Control Act (33 U.S.C. 1330(g)), funds made available
pursuant to authorization under such section for fiscal year 1998 and
prior fiscal years may be used for implementing comprehensive
conservation and management plans.

3d066acad8b1beff271e67746be4104f1af0325e9d205d518bc7de72feb5d618

termination of the Office of Consumer Affairs shall be made available
from funds appropriated to the Department of Health and Human Services
for fiscal year 1998.

7c40059c8b568663068c0abf832b53f4e64d10223b0e1ef314f501956e670074

``qualified student loan'' with respect to national service education
awards shall mean any loan made directly to a student by the Alaska
Commission on Postsecondary Education, in addition to other meanings
under section 148(b)(7) of the National and Community Service Act.

71c74d8794c9e9a18383eeb85c09f4007889b39562e436e44d0d50752841c30b

The table of contents for this title is as follows:

3c4e4a83f0232e79ace1430fcf0dc13c588482f007149c8bba88e8a11ae9c868

TITLE V

-HUD MULTIFAMILY HOUSING REFORM

Subtitle A--FHA-Insured Multifamily Housing Mortgage and Housing
Assistance Restructuring

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housing projects.
Subtitle C--Enforcement Provisions

ff74f1540c46cafb9712abf8786477c39b21f83cf902e0d6e072e7f4a7906e49

PART 1--FHA SINGLE FAMILY AND MULTIFAMILY HOUSING

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participants in FHA programs.
PART 2--FHA MULTIFAMILY PROVISIONS

2407015668b7ae0a2d976b4d8e7a68dcd8e93311b51248dbed9e38751830ab5d

directors, and certain managing agents of multifamily
projects.

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203fe55e82c0ae973550abf87307898e680056469779b8983279ed943c5ca07e

Subtitle D--Office of Multifamily Housing Assistance Restructuring

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dd7233626c804341c950a302c03f7f96ce7a3f2296e0fc469e0b195f3de52cb3

This title may be cited as the ``Multifamily Assisted Housing
Reform and Affordability Act of 1997''.
Subtitle A--FHA-Insured Multifamily Housing Mortgage and Housing
Assistance Restructuring

912885bec56c087fa849d0273c0be3975e823bb7c81f0ccd9df620bb799d8095

(a) Findings.--Congress finds that--
(1) there exists throughout the Nation a need for decent, safe,
and affordable housing;
(2) as of the date of enactment of this Act, it is estimated
that--
(A) the insured multifamily housing portfolio of the
Federal Housing Administration consists of 14,000 rental
properties, with an aggregate unpaid principal mortgage balance
of $38,000,000,000; and
(B) approximately 10,000 of these properties contain
housing units that are assisted with project-based rental
assistance under section 8 of the United States Housing Act of
1937;
(3) FHA-insured multifamily rental properties are a major
Federal investment, providing affordable rental housing to an
estimated 2,000,000 low- and very low-income families;
(4) approximately 1,600,000 of these families live in dwelling
units that are assisted with project-based rental assistance under
section 8 of the United States Housing Act of 1937;
(5) a substantial number of housing units receiving project-
based assistance have rents that are higher than the rents of
comparable, unassisted rental units in the same housing rental
market;
(6) many of the contracts for project-based assistance will
expire during the several years following the date of enactment of
this Act;
(7) it is estimated that--
(A) if no changes in the terms and conditions of the
contracts for project-based assistance are made before fiscal
year 2000, the cost of renewing all expiring rental assistance
contracts under section 8 of the United States Housing Act of
1937 for both project-based and tenant-based rental assistance
will increase from approximately $3,600,000,000 in fiscal year
1997 to over $14,300,000,000 by fiscal year 2000 and some
$22,400,000,000 in fiscal year 2006;
(B) of those renewal amounts, the cost of renewing project-
based assistance will increase from $1,200,000,000 in fiscal
year 1997 to almost $7,400,000,000 by fiscal year 2006; and
(C) without changes in the manner in which project-based
rental assistance is provided, renewals of expiring contracts
for project-based rental assistance will require an
increasingly larger portion of the discretionary budget
authority of the Department of Housing and Urban Development in
each subsequent fiscal year for the foreseeable future;
(8) absent new budget authority for the renewal of expiring
rental contracts for project-based assistance, many of the FHA-
insured multifamily housing projects that are assisted with
project-based assistance are likely to default on their FHA-insured
mortgage payments, resulting in substantial claims to the FHA
General Insurance Fund and Special Risk Insurance Fund;
(9) more than 15 percent of federally assisted multifamily
housing projects are physically or financially distressed,
including a number which suffer from mismanagement;
(10) due to Federal budget constraints, the downsizing of the
Department of Housing and Urban Development, and diminished
administrative capacity, the Department lacks the ability to ensure
the continued economic and physical well-being of the stock of
federally insured and assisted multifamily housing projects;
(11) the economic, physical, and management problems facing the
stock of federally insured and assisted multifamily housing
projects will be best served by reforms that--
(A) reduce the cost of Federal rental assistance, including
project-based assistance, to these projects by reducing the
debt service and operating costs of these projects while
retaining the low-income affordability and availability of this
housing;
(B) address physical and economic distress of this housing
and the failure of some project managers and owners of projects
to comply with management and ownership rules and requirements;
and
(C) transfer and share many of the loan and contract
administration functions and responsibilities of the Secretary
to and with capable State, local, and other entities; and
(12) the authority and duties of the Secretary, not including
the control by the Secretary of applicable accounts in the Treasury
of the United States, may be delegated to State, local or other
entities at the discretion of the Secretary, to the extent the
Secretary determines, and for the purpose of carrying out this Act,
so that the Secretary has the discretion to be relieved of
processing and approving any document or action required by these
reforms.
(b) Purposes.--Consistent with the purposes and requirements of the
Government Performance and Results Act of 1993, the purposes of this
subtitle are--
(1) to preserve low-income rental housing affordability and
availability while reducing the long-term costs of project-based
assistance;
(2) to reform the design and operation of Federal rental
housing assistance programs, administered by the Secretary, to
promote greater multifamily housing project operating and cost
efficiencies;
(3) to encourage owners of eligible multifamily housing
projects to restructure their FHA-insured mortgages and project-
based assistance contracts in a manner that is consistent with this
subtitle before the year in which the contract expires;
(4) to reduce the cost of insurance claims under the National
Housing Act related to mortgages insured by the Secretary and used
to finance eligible multifamily housing projects;
(5) to streamline and improve federally insured and assisted
multifamily housing project oversight and administration;
(6) to resolve the problems affecting financially and
physically troubled federally insured and assisted multifamily
housing projects through cooperation with residents, owners, State
and local governments, and other interested entities and
individuals;
(7) to protect the interest of project owners and managers,
because they are partners of the Federal Government in meeting the
affordable housing needs of the Nation through the section 8 rental
housing assistance program;
(8) to protect the interest of tenants residing in the
multifamily housing projects at the time of the restructuring for
the housing; and
(9) to grant additional enforcement tools to use against those
who violate agreements and program requirements, in order to ensure
that the public interest is safeguarded and that Federal
multifamily housing programs serve their intended purposes.

24f783232807ed469dc94c1d58a1a53d9b7cc83e2574d213d557dc562b322507

In this subtitle:
(1) Comparable properties.--The term ``comparable properties''
means properties in the same market areas, where practicable,
that--
(A) are similar to the eligible multifamily housing project
as to neighborhood (including risk of crime), type of location,
access, street appeal, age, property size, apartment mix,
physical configuration, property and unit amenities, utilities,
and other relevant characteristics; and
(B) are not receiving project-based assistance.
(2) Eligible multifamily housing project.--The term ``eligible
multifamily housing project'' means a property consisting of more
than 4 dwelling units--
(A) with rents that, on an average per unit or per room
basis, exceed the rent of comparable properties in the same
market area, determined in accordance with guidelines
established by the Secretary;
(B) that is covered in whole or in part by a contract for
project-based assistance under--
(i) the new construction or substantial rehabilitation
program under section 8(b)(2) of the United States Housing
Act of 1937 (as in effect before October 1, 1983);
(ii) the property disposition program under section
8(b) of the United States Housing Act of 1937;
(iii) the moderate rehabilitation program under section
8(e)(2) of the United States Housing Act of 1937;
(iv) the loan management assistance program under
section 8 of the United States Housing Act of 1937;
(v) section 23 of the United States Housing Act of 1937
(as in effect before January 1, 1975);
(vi) the rent supplement program under section 101 of
the Housing and Urban Development Act of 1965; or
(vii) section 8 of the United States Housing Act of
1937, following conversion from assistance under section
101 of the Housing and Urban Development Act of 1965; and
(C) financed by a mortgage insured or held by the Secretary
under the National Housing Act.
(3) Expiring contract.--The term ``expiring contract'' means a
project-based assistance contract attached to an eligible
multifamily housing project which, under the terms of the contract,
will expire.
(4) Expiration date.--The term ``expiration date'' means the
date on which an expiring contract expires.
(5) Fair market rent.--The term ``fair market rent'' means the
fair market rental established under section 8(c) of the United
States Housing Act of 1937.
(6) Low-income families.--The term ``low-income families'' has
the same meaning as provided under section 3(b)(2) of the United
States Housing Act of 1937.
(7) Mortgage restructuring and rental assistance sufficiency
plan.--The term ``mortgage restructuring and rental assistance
sufficiency plan'' means the plan as provided under section 514.
(8) Nonprofit organization.--The term ``nonprofit
organization'' means any private nonprofit organization that--
(A) is organized under State or local laws;
(B) has no part of its net earnings inuring to the benefit
of any member, founder, contributor, or individual; and
(C) has a long-term record of service in providing or
financing quality affordable housing for low-income families
through relationships with public entities.
(9) Portfolio restructuring agreement.--The term ``portfolio
restructuring agreement'' means the agreement entered into between
the Secretary and a participating administrative entity, as
provided under section 513.
(10) Participating administrative entity.--The term
``participating administrative entity'' means a public agency
(including a State housing finance agency or a local housing
agency), a nonprofit organization, or any other entity (including a
law firm or an accounting firm) or a combination of such entities,
that meets the requirements under section 513(b).
(11) Project-based assistance.--The term ``project-based
assistance'' means rental assistance described in paragraph (2)(B)
of this section that is attached to a multifamily housing project.
(12) Renewal.--The term ``renewal'' means the replacement of an
expiring Federal rental contract with a new contract under section
8 of the United States Housing Act of 1937, consistent with the
requirements of this subtitle.
(13) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(14) State.--The term ``State'' has the same meaning as in
section 104 of the Cranston-Gonzalez National Affordable Housing
Act.
(15) Tenant-based assistance.--The term ``tenant-based
assistance'' has the same meaning as in section 8(f) of the United
States Housing Act of 1937.
(16) Unit of general local government.--The term ``unit of
general local government'' has the same meaning as in section 104
of the Cranston-Gonzalez National Affordable Housing Act.
(17) Very low-income family.--The term ``very low-income
family'' has the same meaning as in section 3(b) of the United
States Housing Act of 1937.
(18) Qualified mortgagee.--The term ``qualified mortgagee''
means an entity approved by the Secretary that is capable of
servicing, as well as originating, FHA-insured mortgages, and
that--
(A) is not suspended or debarred by the Secretary;
(B) is not suspended or on probation imposed by the
Mortgagee Review Board; and
(C) is not in default under any Government National
Mortgage Association obligation.

d8c7f5533b78013e2d41a8f1b9b8421571b88dc066603f837b6a27afdf2e0e0a

(a) Participating Administrative Entities.--
(1) In general.--Subject to subsection (b)(3), the Secretary
shall enter into portfolio restructuring agreements with
participating administrative entities for the implementation of
mortgage restructuring and rental assistance sufficiency plans to
restructure multifamily housing mortgages insured or held by the
Secretary under the National Housing Act, in order to--
(A) reduce the costs of expiring contracts for assistance
under section 8 of the United States Housing Act of 1937;
(B) address financially and physically troubled projects;
and
(C) correct management and ownership deficiencies.
(2) Portfolio restructuring agreements.--Each portfolio
restructuring agreement entered into under this subsection shall--
(A) be a cooperative agreement to establish the obligations
and requirements between the Secretary and the participating
administrative entity;
(B) identify the eligible multifamily housing projects or
groups of projects for which the participating administrative
entity is responsible for assisting in developing and
implementing approved mortgage restructuring and rental
assistance sufficiency plans under section 514;
(C) require the participating administrative entity to
review and certify to the accuracy and completeness of the
evaluation of rehabilitation needs required under section
514(e)(3) for each eligible multifamily housing project
included in the portfolio restructuring agreement, in
accordance with regulations promulgated by the Secretary;
(D) identify the responsibilities of both the participating
administrative entity and the Secretary in implementing a
mortgage restructuring and rental assistance sufficiency plan,
including any actions proposed to be taken under section 516 or
517;
(E) require each mortgage restructuring and rental
assistance sufficiency plan to be prepared in accordance with
the requirements of section 514 for each eligible multifamily
housing project;
(F) include other requirements established by the
Secretary, including a right of the Secretary to terminate the
contract immediately for failure of the participating
administrative entity to comply with any applicable
requirement;
(G) if the participating administrative entity is a State
housing finance agency or a local housing agency, indemnify the
participating administrative entity against lawsuits and
penalties for actions taken pursuant to the agreement,
excluding actions involving willful misconduct or negligence;
(H) include compensation for all reasonable expenses
incurred by the participating administrative entity necessary
to perform its duties under this subtitle; and
(I) include, where appropriate, incentive agreements with
the participating administrative entity to reward superior
performance in meeting the purposes of this Act.
(b) Selection of Participating Administrative Entity.--
(1) Selection criteria.--The Secretary shall select a
participating administrative entity based on whether, in the
determination of the Secretary, the participating administrative
entity--
(A) has demonstrated experience in working directly with
residents of low-income housing projects and with tenants and
other community-based organizations;
(B) has demonstrated experience with and capacity for
multifamily restructuring and multifamily financing (which may
include risk-sharing arrangements and restructuring eligible
multifamily housing properties under the fiscal year 1997
Federal Housing Administration multifamily housing
demonstration program);
(C) has a history of stable, financially sound, and
responsible administrative performance (which may include the
management of affordable low-income rental housing);
(D) has demonstrated financial strength in terms of asset
quality, capital adequacy, and liquidity;
(E) has demonstrated that it will carry out the specific
transactions and other responsibilities under this subtitle in
a timely, efficient, and cost-effective manner; and
(F) meets other criteria, as determined by the Secretary.
(2) Selection.--If more than 1 interested entity meets the
qualifications and selection criteria for a participating
administrative entity, the Secretary may select the entity that
demonstrates, as determined by the Secretary, that it will--
(A) provide the most timely, efficient, and cost-
effective--
(i) restructuring of the mortgages covered by the
portfolio restructuring agreement; and
(ii) administration of the section 8 project-based
assistance contract, if applicable; and
(B) protect the public interest (including the long-term
provision of decent low-income affordable rental housing and
protection of residents, communities, and the American
taxpayer).
(3) Partnerships.--For the purposes of any participating
administrative entity applying under this subsection, participating
administrative entities are encouraged to develop partnerships with
each other and with nonprofit organizations, if such partnerships
will further the participating administrative entity's ability to
meet the purposes of this Act.
(4) Alternative administrators.--With respect to any eligible
multifamily housing project for which a participating
administrative entity is unavailable, or should not be selected to
carry out the requirements of this subtitle with respect to that
multifamily housing project for reasons relating to the selection
criteria under paragraph (1), the Secretary shall--
(A) carry out the requirements of this subtitle with
respect to that eligible multifamily housing project; or
(B) contract with other qualified entities that meet the
requirements of paragraph (1) to provide the authority to carry
out all or a portion of the requirements of this subtitle with
respect to that eligible multifamily housing project.
(5) Priority for public agencies as participating
administrative entities.--The Secretary shall provide a reasonable
period during which the Secretary will consider proposals only from
State housing finance agencies or local housing agencies, and the
Secretary shall select such an agency without considering other
applicants if the Secretary determines that the agency is
qualified. The period shall be of sufficient duration for the
Secretary to determine whether any State housing finance agencies
or local housing agencies are interested and qualified. Not later
than the end of the period, the Secretary shall notify the State
housing finance agency or the local housing agency regarding the
status of the proposal and, if the proposal is rejected, the
reasons for the rejection and an opportunity for the applicant to
respond.
(6) State and local portfolio requirements.--
(A) In general.--If the housing finance agency of a State
is selected as the participating administrative entity, that
agency shall be responsible for such eligible multifamily
housing projects in that State as may be agreed upon by the
participating administrative entity and the Secretary. If a
local housing agency is selected as the participating
administrative entity, that agency shall be responsible for
such eligible multifamily housing projects in the jurisdiction
of the agency as may be agreed upon by the participating
administrative entity and the Secretary.
(B) Nondelegation.--Except with the prior approval of the
Secretary, a participating administrative entity may not
delegate or transfer responsibilities and functions under this
subtitle to 1 or more entities.
(7) Private entity requirements.--
(A) In general.--If a for-profit entity is selected as the
participating administrative entity, that entity shall be
required to enter into a partnership with a public purpose
entity (including the Department).
(B) Prohibition.--No private entity shall share,
participate in, or otherwise benefit from any equity created,
received, or restructured as a result of the portfolio
restructuring agreement.

977a88391f2a046ae80f870bc64cb6c98b8f89ac5de58178d22f66d85a25c8eb

PLAN.
(a) In General.--
(1) Development of procedures and requirements.--The Secretary
shall develop procedures and requirements for the submission of a
mortgage restructuring and rental assistance sufficiency plan for
each eligible multifamily housing project with an expiring
contract.
(2) Terms and conditions.--Each mortgage restructuring and
rental assistance sufficiency plan submitted under this subsection
shall be developed by the participating administrative entity, in
cooperation with an owner of an eligible multifamily housing
project and any servicer for the mortgage that is a qualified
mortgagee, under such terms and conditions as the Secretary shall
require.
(3) Consolidation.--Mortgage restructuring and rental
assistance sufficiency plans submitted under this subsection may be
consolidated as part of an overall strategy for more than 1
property.
(b) Notice Requirements.--The Secretary shall establish notice
procedures and hearing requirements for tenants and owners concerning
the dates for the expiration of project-based assistance contracts for
any eligible multifamily housing project.
(c) Extension of Contract Term.--Subject to agreement by a project
owner, the Secretary may extend the term of any expiring contract or
provide a section 8 contract with rent levels set in accordance with
subsection (g) for a period sufficient to facilitate the implementation
of a mortgage restructuring and rental assistance sufficiency plan, as
determined by the Secretary.
(d) Tenant Rent Protection.--If the owner of a project with an
expiring Federal rental assistance contract does not agree to extend
the contract, not less than 12 months prior to terminating the
contract, the project owner shall provide written notice to the
Secretary and the tenants and the Secretary shall make tenant-based
assistance available to tenants residing in units assisted under the
expiring contract at the time of expiration.
(e) Mortgage Restructuring and Rental Assistance Sufficiency
Plan.--Each mortgage restructuring and rental assistance sufficiency
plan shall--
(1) except as otherwise provided, restructure the project-based
assistance rents for the eligible multifamily housing project in a
manner consistent with subsection (g), or provide for tenant-based
assistance in accordance with section 515;
(2) allow for rent adjustments by applying an operating cost
adjustment factor established under guidelines established by the
Secretary;
(3) require the owner or purchaser of an eligible multifamily
housing project to evaluate the rehabilitation needs of the
project, in accordance with regulations of the Secretary, and
notify the participating administrative entity of the
rehabilitation needs;
(4) require the owner or purchaser of the project to provide or
contract for competent management of the project;
(5) require the owner or purchaser of the project to take such
actions as may be necessary to rehabilitate, maintain adequate
reserves, and to maintain the project in decent and safe condition,
based on housing quality standards established by--
(A) the Secretary; or
(B) local housing codes or codes adopted by public housing
agencies that--
(i) meet or exceed housing quality standards
established by the Secretary; and
(ii) do not severely restrict housing choice;
(6) require the owner or purchaser of the project to maintain
affordability and use restrictions in accordance with regulations
promulgated by the Secretary, for a term of not less than 30 years
which restrictions shall be--
(A) contained in a legally enforceable document recorded in
the appropriate records; and
(B) consistent with the long-term physical and financial
viability and character of the project as affordable housing;
(7) include a certification by the participating administrative
entity that the restructuring meets subsidy layering requirements
established by the Secretary by regulation for purposes of this
subtitle;
(8) require the owner or purchaser of the project to meet such
other requirements as the Secretary determines to be appropriate;
and
(9) prohibit the owner from refusing to lease a reasonable
number of units to holders of certificates and vouchers under
section 8 of the United States Housing Act of 1937 because of the
status of the prospective tenants as certificate and voucher
holders.
(f) Tenant and Other Participation and Capacity Building.--
(1) Procedures.--
(A) In general.--The Secretary shall establish procedures
to provide an opportunity for tenants of the project, residents
of the neighborhood, the local government, and other affected
parties to participate effectively and on a timely basis in the
restructuring process established by this subtitle.
(B) Coverage.--These procedures shall take into account the
need to provide tenants of the project, residents of the
neighborhood, the local government, and other affected parties
timely notice of proposed restructuring actions and appropriate
access to relevant information about restructuring activities.
To the extent practicable and consistent with the need to
accomplish project restructuring in an efficient manner, the
procedures shall give all such parties an opportunity to
provide comments to the participating administrative entity in
writing, in meetings, or in another appropriate manner (which
comments shall be taken into consideration by the participating
administrative entity).
(2) Required consultation.--The procedures developed pursuant
to paragraph (1) shall require consultation with tenants of the
project, residents of the neighborhood, the local government, and
other affected parties, in connection with at least the following:
(A) the mortgage restructuring and rental assistance
sufficiency plan;
(B) any proposed transfer of the project; and
(C) the rental assistance assessment plan pursuant to
section 515(c).
(3) Funding.--
(A) In general.--The Secretary may provide not more than
$10,000,000 annually in funding from which the Secretary may
make obligations to tenant groups, nonprofit organizations, and
public entities for building the capacity of tenant
organizations, for technical assistance in furthering any of
the purposes of this subtitle (including transfer of
developments to new owners) and for tenant services, from those
amounts made available under appropriations Acts for
implementing this subtitle or previously made available for
technical assistance in connection with the preservation of
affordable rental housing for low-income persons.
(B) Manner of providing.--Notwithstanding any other
provision of law restricting the use of preservation technical
assistance funds, the Secretary may provide any funds made
available under subparagraph (A) through existing technical
assistance programs pursuant to any other Federal law,
including the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 and the Multifamily Property
Disposition Reform Act of 1994, or through any other means that
the Secretary considers consistent with the purposes of this
subtitle, without regard to any set-aside requirement otherwise
applicable to those funds.
(C) Prohibition.--None of the funds made available under
subparagraph (A) may be used directly or indirectly to pay for
any personal service, advertisement, telegram, telephone,
letter, printed or written matter, or other device, intended or
designed to influence in any manner a Member of Congress, to
favor or oppose, by vote or otherwise, any legislation or
appropriation by Congress, whether before or after the
introduction of any bill or resolution proposing such
legislation or appropriation.
(g) Rent Levels.--
(1) In general.--Except as provided in paragraph (2), each
mortgage restructuring and rental assistance sufficiency plan
pursuant to the terms, conditions, and requirements of this
subtitle shall establish for units assisted with project-based
assistance in eligible multifamily housing projects adjusted rent
levels that--
(A) are equivalent to rents derived from comparable
properties, if--
(i) the participating administrative entity makes the
rent determination within a reasonable period of time; and
(ii) the market rent determination is based on not less
than 2 comparable properties; or
(B) if those rents cannot be determined, are equal to 90
percent of the fair market rents for the relevant market area.
(2) Exceptions.--
(A) In general.--A contract under this section may include
rent levels that exceed the rent level described in paragraph
(1) at rent levels that do not exceed 120 percent of the fair
market rent for the market area (except that the Secretary may
waive this limit for not more than five percent of all units
subject to restructured mortgages in any fiscal year, based on
a finding of special need), if the participating administrative
entity--
(i) determines that the housing needs of the tenants
and the community cannot be adequately addressed through
implementation of the rent limitation required to be
established through a mortgage restructuring and rental
assistance sufficiency plan under paragraph (1); and
(ii) follows the procedures under paragraph (3).
(B) Exception rents.--In any fiscal year, a participating
administrative entity may approve exception rents on not more
than 20 percent of all units covered by the portfolio
restructuring agreement with expiring contracts in that fiscal
year, except that the Secretary may waive this ceiling upon a
finding of special need.
(3) Rent levels for exception projects.--For purposes of this
section, a project eligible for an exception rent shall receive a
rent calculated on the actual and projected costs of operating the
project, at a level that provides income sufficient to support a
budget-based rent that consists of--
(A) the debt service of the project;
(B) the operating expenses of the project, as determined by
the participating administrative entity, including--
(i) contributions to adequate reserves;
(ii) the costs of maintenance and necessary
rehabilitation; and
(iii) other eligible costs permitted under section 8 of
the United States Housing Act of 1937;
(C) an adequate allowance for potential operating losses
due to vacancies and failure to collect rents, as determined by
the participating administrative entity;
(D) an allowance for a reasonable rate of return to the
owner or purchaser of the project, as determined by the
participating administrative entity, which may be established
to provide incentives for owners or purchasers to meet
benchmarks of quality for management and housing quality; and
(E) other expenses determined by the participating
administrative entity to be necessary for the operation of the
project.
(h) Exemptions From Restructuring.--The following categories of
projects shall not be covered by a mortgage restructuring and rental
assistance sufficiency plan if--
(1) the primary financing or mortgage insurance for the
multifamily housing project that is covered by that expiring
contract was provided by a unit of State government or a unit of
general local government (or an agency or instrumentality of a unit
of a State government or unit of general local government);
(2) the project is a project financed under section 202 of the
Housing Act of 1959 or section 515 of the Housing Act of 1949; or
(3) the project has an expiring contract under section 8 of the
United States Housing Act of 1937 entered into pursuant to section
441 of the Stewart B. McKinney Homeless Assistance Act.

9329480897bc38936089e898f7d3ce2eef6796b773154c15eac161420d5d81e4

OWNER OF PROJECT.
(a) Section 8 Renewals of Restructured Projects.--
(1) Project-based assistance.--Subject to the availability of
amounts provided in advance in appropriations Acts, and to the
control of the Secretary of applicable accounts in the Treasury of
the United States, with respect to an expiring section 8 contract
on an eligible multifamily housing project to be renewed with
project-based assistance (based on a determination under subsection
(c)), the Secretary shall enter into contracts with participating
administrative entities pursuant to which the participating
administrative entity shall offer to renew or extend the contract,
or the Secretary shall offer to renew such contract, and the owner
of the project shall accept the offer, if the initial renewal is in
accordance with the terms and conditions specified in the mortgage
restructuring and rental assistance sufficiency plan and the rental
assistance assessment plan.
(2) Tenant-based assistance.--Subject to the availability of
amounts provided in advance in appropriations Acts and to the
control of the Secretary of applicable accounts in the Treasury of
the United States, with respect to an expiring section 8 contract
on an eligible multifamily housing project to be renewed with
tenant-based assistance (based on a determination under subsection
(c)), the Secretary shall enter into contracts with participating
administrative entities pursuant to which the participating
administrative entity shall provide for the renewal of section 8
assistance on an eligible multifamily housing project with tenant-
based assistance, or the Secretary shall provide for such renewal,
in accordance with the terms and conditions specified in the
mortgage restructuring and rental assistance sufficiency plan and
the rental assistance assessment plan.
(b) Required Commitment.--After the initial renewal of a section 8
contract pursuant to this section, the owner shall accept each offer
made pursuant to subsection (a) to renew the contract, for the term of
the affordability and use restrictions required by section 514(e)(6),
if the offer to renew is on terms and conditions specified in the
mortgage restructuring and rental assistance sufficiency plan.
(c) Determination of Whether To Renew With Project-Based or Tenant-
Based Assistance.--
(1) Mandatory renewal of project-based assistance.--Section 8
assistance shall be renewed with project-based assistance, if--
(A) the project is located in an area in which the
participating administrative entity determines, based on
housing market indicators, such as low vacancy rates or high
absorption rates, that there is not adequate available and
affordable housing or that the tenants of the project would not
be able to locate suitable units or use the tenant-based
assistance successfully;
(B) a predominant number of the units in the project are
occupied by elderly families, disabled families, or elderly and
disabled families;
(C) the project is held by a nonprofit cooperative
ownership housing corporation or nonprofit cooperative housing
trust.
(2) Rental assistance assessment plan.--
(A) In general.--With respect to any project that is not
described in paragraph (1), the participating administrative
entity shall, after consultation with the owner of the project,
develop a rental assistance assessment plan to determine
whether to renew assistance for the project with tenant-based
assistance or project-based assistance.
(B) Rental assistance assessment plan requirements.--Each
rental assistance assessment plan developed under this
paragraph shall include an assessment of the impact of
converting to tenant-based assistance and the impact of
extending project-based assistance on--
(i) the ability of the tenants to find adequate,
available, decent, comparable, and affordable housing in
the local market;
(ii) the types of tenants residing in the project (such
as elderly families, disabled families, large families, and
cooperative homeowners);
(iii) the local housing needs identified in the
comprehensive housing affordability strategy, and local
market vacancy trends;
(iv) the cost of providing assistance, comparing the
applicable payment standard to the project's adjusted rent
levels determined under section 514(g);
(v) the long-term financial stability of the project;
(vi) the ability of residents to make reasonable
choices about their individual living situations;
(vii) the quality of the neighborhood in which the
tenants would reside; and
(viii) the project's ability to compete in the
marketplace.
(C) Reports to director.--Each participating administrative
entity shall report regularly to the Director as defined in
subtitle D, as the Director shall require, identifying--
(i) each eligible multifamily housing project for which
the entity has developed a rental assistance assessment
plan under this paragraph that determined that the tenants
of the project generally supported renewal of assistance
with tenant-based assistance, but under which assistance
for the project was renewed with project-based assistance;
and
(ii) each project for which the entity has developed
such a plan under which the assistance is renewed using
tenant-based assistance.
(3) Eligibility for tenant-based assistance.--Subject to
paragraph (4), with respect to any project that is not described in
paragraph (1), if a participating administrative entity approves
the use of tenant-based assistance based on a rental assistance
assessment plan developed under paragraph (2), tenant-based
assistance shall be provided to each assisted family (other than a
family already receiving tenant-based assistance) residing in the
project at the time the assistance described in section 512(2)(B)
terminates.
(4) Rents for families receiving tenant-based assistance.--
(A) In general.--Notwithstanding subsection (c)(1) or
(o)(1) of section 8 of the United States Housing Act of 1937,
in the case of any family described in paragraph (3) that
resides in a project described in section 512(2)(B) in which
the reasonable rent (which rent shall include any amount
allowed for utilities and shall not exceed comparable market
rents for the relevant housing market area) exceeds the fair
market rent limitation or the payment standard, as applicable,
the amount of assistance for the family shall be determined in
accordance with subparagraph (B).
(B) Maximum monthly rent; payment standard.--With respect
to the certificate program under section 8(b) of the United
States Housing Act of 1937, the maximum monthly rent under the
contract (plus any amount allowed for utilities) shall be such
reasonable rent for the unit. With respect to the voucher
program under section 8(o) of the United States Housing Act of
1937, the payment standard shall be deemed to be such
reasonable rent for the unit.
(5) Inapplicability of certain provision.--If a participating
administrative entity approves renewal with project-based
assistance under this subsection, section 8(d)(2) of the United
States Housing Act of 1937 shall not apply.

96537801561c97e61f7129030ce66494b5cdc0c70926e77beeffe66d5cf8e73f

(a) Prohibition on Restructuring.--The Secretary may elect not to
consider any mortgage restructuring and rental assistance sufficiency
plan or request for contract renewal if the Secretary or the
participating administrative entity determines that--
(1)(A) the owner or purchaser of the project has engaged in
material adverse financial or managerial actions or omissions with
regard to such project; or
(B) the owner or purchaser of the project has engaged in
material adverse financial or managerial actions or omissions with
regard to other projects of such owner or purchaser that are
federally assisted or financed with a loan from, or mortgage
insured or guaranteed by, an agency of the Federal Government;
(2) material adverse financial or managerial actions or
omissions include--
(A) materially violating any Federal, State, or local law
or regulation with regard to this project or any other
federally assisted project, after receipt of notice and an
opportunity to cure;
(B) materially breaching a contract for assistance under
section 8 of the United States Housing Act of 1937, after
receipt of notice and an opportunity to cure;
(C) materially violating any applicable regulatory or other
agreement with the Secretary or a participating administrative
entity, after receipt of notice and an opportunity to cure;
(D) repeatedly and materially violating any Federal, State,
or local law or regulation with regard to the project or any
other federally assisted project;
(E) repeatedly and materially breaching a contract for
assistance under section 8 of the United States Housing Act of
1937;
(F) repeatedly and materially violating any applicable
regulatory or other agreement with the Secretary or a
participating administrative entity;
(G) repeatedly failing to make mortgage payments at times
when project income was sufficient to maintain and operate the
property;
(H) materially failing to maintain the property according
to housing quality standards after receipt of notice and a
reasonable opportunity to cure; or
(I) committing any actions or omissions that would warrant
suspension or debarment by the Secretary;
(3) the owner or purchaser of the property materially failed to
follow the procedures and requirements of this subtitle, after
receipt of notice and an opportunity to cure; or
(4) the poor condition of the project cannot be remedied in a
cost effective manner, as determined by the participating
administrative entity.
The term ``owner'' as used in this subsection, in addition to it having
the same meaning as in section 8(f) of the United States Housing Act of
1937, also means an affiliate of the owner. The term ``purchaser'' as
used in this subsection means any private person or entity, including a
cooperative, an agency of the Federal Government, or a public housing
agency, that, upon purchase of the project, would have the legal right
to lease or sublease dwelling units in the project, and also means an
affiliate of the purchaser. The terms ``affiliate of the owner'' and
``affiliate of the purchaser'' means any person or entity (including,
but not limited to, a general partner or managing member, or an officer
of either) that controls an owner or purchaser, is controlled by an
owner or purchaser, or is under common control with the owner or
purchaser. The term ``control'' means the direct or indirect power
(under contract, equity ownership, the right to vote or determine a
vote, or otherwise) to direct the financial, legal, beneficial or other
interests of the owner or purchaser.
(b) Opportunity To Dispute Findings.--
(1) In general.--During the 30-day period beginning on the date
on which the owner or purchaser of an eligible multifamily housing
project receives notice of a rejection under subsection (a) or of a
mortgage restructuring and rental assistance sufficiency plan under
section 514, the Secretary or participating administrative entity
shall provide that owner or purchaser with an opportunity to
dispute the basis for the rejection and an opportunity to cure.
(2) Affirmation, modification, or reversal.--
(A) In general.--After providing an opportunity to dispute
under paragraph (1), the Secretary or the participating
administrative entity may affirm, modify, or reverse any
rejection under subsection (a) or rejection of a mortgage
restructuring and rental assistance sufficiency plan under
section 514.
(B) Reasons for decision.--The Secretary or the
participating administrative entity, as applicable, shall
identify the reasons for any final decision under this
paragraph.
(C) Review process.--The Secretary shall establish an
administrative review process to appeal any final decision
under this paragraph.
(c) Final Determination.--Any final determination under this
section shall not be subject to judicial review.
(d) Displaced Tenants.--Subject to the availability of amounts
provided in advance in appropriations Acts, for any low-income tenant
that is residing in a project or receiving assistance under section 8
of the United States Housing Act of 1937 at the time of rejection under
this section, that tenant shall be provided with tenant-based
assistance and reasonable moving expenses, as determined by the
Secretary.
(e) Transfer of Property.--For properties disqualified from the
consideration of a mortgage restructuring and rental assistance
sufficiency plan under this section in accordance with paragraph (1) or
(2) of subsection (a) because of actions by an owner or purchaser, the
Secretary shall establish procedures to facilitate the voluntary sale
or transfer of a property as part of a mortgage restructuring and
rental assistance sufficiency plan, with a preference for tenant
organizations and tenant-endorsed community-based nonprofit and public
agency purchasers meeting such reasonable qualifications as may be
established by the Secretary.

004dad8ffbd6bb34236f438573d43d5ee296ffdaffde6e01f875200217dc7958

(a) Mortgage Restructuring.--
(1) In this subtitle, an approved mortgage restructuring and
rental assistance sufficiency plan shall include restructuring
mortgages in accordance with this subsection to provide--
(A) a restructured or new first mortgage that is
sustainable at rents at levels that are established in section
514(g); and
(B) a second mortgage that is in an amount equal to no more
than the difference between the restructured or new first
mortgage and the indebtedness under the existing insured
mortgage immediately before it is restructured or refinanced,
provided that the amount of the second mortgage shall be in an
amount that the Secretary or participating administrative
entity determines can reasonably be expected to be repaid.
(2) The second mortgage shall bear interest at a rate not to
exceed the applicable Federal rate as defined in section 1274(d) of
the Internal Revenue Code of 1986. The term of the second mortgage
shall be equal to the term of the restructured or new first
mortgage.
(3) Payments on the second mortgage shall be deferred when the
first mortgage remains outstanding, except to the extent there is
excess project income remaining after payment of all reasonable and
necessary operating expenses (including deposits in a reserve for
replacement), debt service on the first mortgage, and any other
expenditures approved by the Secretary. At least 75 percent of any
excess project income shall be applied to payments on the second
mortgage, and the Secretary or the participating administrative
entity may permit up to 25 percent to be paid to the project owner
if the Secretary or participating administrative entity determines
that the project owner meets benchmarks for management and housing
quality.
(4) The full amount of the second mortgage shall be immediately
due and payable if--
(A) the first mortgage is terminated or paid in full,
except as otherwise provided by the holder of the second
mortgage;
(B) the project is purchased and the second mortgage is
assumed by any subsequent purchaser in violation of guidelines
established by the Secretary; or
(C) the Secretary provides notice to the project owner that
such owner has failed to materially comply with any
requirements of this section or the United States Housing Act
of 1937 as those requirements apply to the project, with a
reasonable opportunity for such owner to cure such failure.
(5) The Secretary may modify the terms or forgive all or part
of the second mortgage if the Secretary holds the second mortgage
and if the project is acquired by a tenant organization or tenant-
endorsed community-based nonprofit or public agency, pursuant to
guidelines established by the Secretary.
(b) Restructuring Tools.--In addition to the requirements of
subsection (a) and to the extent these actions are consistent with this
section and with the control of the Secretary of applicable accounts in
the Treasury of the United States, an approved mortgage restructuring
and rental assistance sufficiency plan under this subtitle may include
one or more of the following actions:
(1) Full or partial payment of claim.--making a full payment of
claim or partial payment of claim under section 541(b) of the
National Housing Act, as amended by section 523(b) of this Act. Any
payment under this paragraph shall not require the approval of a
mortgagee;
(2) Refinancing of debt.--refinancing of all or part of the
debt on a project. If the refinancing involves a mortgage that will
continue to be insured under the National Housing Act, the
refinancing shall be documented through amendment of the existing
insurance contract and not through a new insurance contract;
(3) Mortgage insurance.--providing FHA multifamily mortgage
insurance, reinsurance or other credit enhancement alternatives,
including multifamily risk-sharing mortgage programs, as provided
under section 542 of the Housing and Community Development Act of
1992. Any limitations on the number of units available for mortgage
insurance under section 542 shall not apply to eligible multifamily
housing projects. Any credit subsidy costs of providing mortgage
insurance shall be paid from the Liquidating Accounts of the
General Insurance Fund or the Special Risk Insurance Fund and shall
not be subject to any limitation on appropriations;
(4) Credit enhancement.--providing any additional State or
local mortgage credit enhancements and risk-sharing arrangements
that may be established with State or local housing finance
agencies, the Federal Housing Finance Board, the Federal National
Mortgage Association, and the Federal Home Loan Mortgage
Corporation, to a modified or refinanced first mortgage;
(5) Compensation of third parties.--consistent with the
portfolio restructuring agreement, entering into agreements,
incurring costs, or making payments, including incentive agreements
designed to reward superior performance in meeting the purposes of
this Act, as may be reasonably necessary, to compensate the
participation of participating administrative entities and other
parties in undertaking actions authorized by this subtitle. Upon
request to the Secretary, participating administrative entities
that are qualified under the United States Housing Act of 1937 to
serve as contract administrators shall be the contract
administrators under section 8 of the United States Housing Act of
1937 for purposes of any contracts entered into as part of an
approved mortgage restructuring and rental assistance sufficiency
plan. Subject to the availability of amounts provided in advance in
appropriations Acts for administrative fees under section 8 of the
United States Housing Act of 1937, such amounts may be used to
compensate participating administrative entities for compliance
monitoring costs incurred under section 519;
(6) Use of project accounts.--applying any residual receipts,
replacement reserves, and any other project accounts not required
for project operations, to maintain the long-term affordability and
physical condition of the property or of other eligible multifamily
housing projects. The participating administrative entity may
expedite the acquisition of residual receipts, replacement
reserves, or other such accounts, by entering into agreements with
owners of housing covered by an expiring contract to provide an
owner with a share of the receipts, not to exceed 10 percent, in
accordance with guidelines established by the Secretary; and
(7) Rehabilitation needs.--
(A) In general.--Rehabilitation may be paid from the
residual receipts, replacement reserves, or any other project
accounts not required for project operations, or, as provided
in appropriations Acts and subject to the control of the
Secretary of applicable accounts in the Treasury of the United
States, from budget authority provided for increases in the
budget authority for assistance contracts under section 8 of
the United States Housing Act of 1937, the rehabilitation grant
program established under section 236 of the National Housing
Act, as amended by section 531 of subtitle B of this Act, or
through the debt restructuring transaction. Rehabilitation
under this paragraph shall only be for the purpose of restoring
the project to a non-luxury standard adequate for the rental
market intended at the original approval of the project-based
assistance.
(B) Contribution.--Each owner or purchaser of a project to
be rehabilitated under an approved mortgage restructuring and
rental assistance sufficiency plan shall contribute, from non-
project resources, not less than 25 percent of the amount of
rehabilitation assistance received, except that the
participating administrative entity may provide an exception
from the requirement of this subparagraph for housing
cooperatives.
(c) Role of FNMA and FHLMC.--Section 1335 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4565)
is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) paragraph (4), by striking the period at the end and
inserting ``; and'';
(3) by striking ``To meet'' and inserting the following:
``(a) In General.--To meet''; and
(4) by adding at the end the following:
``(5) assist in maintaining the affordability of assisted units
in eligible multifamily housing projects with expiring contracts,
as defined under the Multifamily Assisted Housing Reform and
Affordability Act of 1997.
``(b) Affordable Housing Goals.--Actions taken under subsection
(a)(5) shall constitute part of the contribution of each entity in
meeting its affordable housing goals under sections 1332, 1333, and
1334 for any fiscal year, as determined by the Secretary.''.
(d) Prohibition on Equity Sharing by the Secretary.--The Secretary
is prohibited from participating in any equity agreement or profit-
sharing agreement in conjunction with any eligible multifamily housing
project.
(e) Conflict of Interest Guidelines.--The Secretary may establish
guidelines to prevent conflicts of interest by a participating
administrative entity that provides, directly or through risk-sharing
arrangements, any form of credit enhancement or financing pursuant to
subsections (b)(3) or (b)(4) or to prevent conflicts of interest by any
other person or entity under this subtitle.

8284c511a8bf7e5079e56d47ee3df18fa6b25a013945c337f392c9a7ccd2f824

Each participating administrative entity shall establish management
standards, including requirements governing conflicts of interest
between owners, managers, contractors with an identity of interest,
pursuant to guidelines established by the Secretary and consistent with
industry standards.

173b7978eddc3deca03932fc7d40f7b4cf071e82ba4888bab180aac30e07c04d

(a) Compliance Agreements.--(1) Pursuant to regulations issued by
the Secretary under section 522(a), each participating administrative
entity, through binding contractual agreements with owners and
otherwise, shall ensure long-term compliance with the provisions of
this subtitle. Each agreement shall, at a minimum, provide for--
(A) enforcement of the provisions of this subtitle; and
(B) remedies for the breach of those provisions.
(2) If the participating administrative entity is not qualified
under the United States Housing Act of 1937 to be a section 8 contract
administrator or fails to perform its duties under the portfolio
restructuring agreement, the Secretary shall have the right to enforce
the agreement.
(b) Periodic Monitoring.--
(1) In general.--Not less than annually, each participating
administrative entity that is qualified to be the section 8
contract administrator shall review the status of all multifamily
housing projects for which a mortgage restructuring and rental
assistance sufficiency plan has been implemented.
(2) Inspections.--Each review under this subsection shall
include onsite inspection to determine compliance with housing
codes and other requirements as provided in this subtitle and the
portfolio restructuring agreements.
(3) Administration.--If the participating administrative entity
is not qualified under the United States Housing Act of 1937 to be
a section 8 contract administrator, either the Secretary or a
qualified State or local housing agency shall be responsible for
the review required by this subsection.
(c) Audit by the Secretary.--The Comptroller General of the United
States, the Secretary, and the Inspector General of the Department of
Housing and Urban Development may conduct an audit at any time of any
multifamily housing project for which a mortgage restructuring and
rental assistance sufficiency plan has been implemented.

8c7e8931527c71f0e090aec2c82be38ffaba2d074af9b604e26a4d865607bf9b

(a) Annual Review.--In order to ensure compliance with this
subtitle, the Secretary shall conduct an annual review and report to
the Congress on actions taken under this subtitle and the status of
eligible multifamily housing projects.
(b) Semiannual Review.--Not less than semiannually during the 2-
year period beginning on the date of the enactment of this Act and not
less than annually thereafter, the Secretary shall submit reports to
the Committee on Banking and Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate stating, for such periods, the total number of
projects identified by participating administrative entities under each
of clauses (i) and (ii) of section 515(c)(2)(C).

8094bccd40f3d721cc7d50d7712c47e5308a787a0b8c6d9b0fff5934553099a1

(a) Initial Audit.--Not later than 18 months after the effective
date of final regulations promulgated under this subtitle, the
Comptroller General of the United States shall conduct an audit to
evaluate eligible multifamily housing projects and the implementation
of mortgage restructuring and rental assistance sufficiency plans.
(b) Report.--
(1) In general.--Not later than 18 months after the audit
conducted under subsection (a), the Comptroller General of the
United States shall submit to Congress a report on the status of
eligible multifamily housing projects and the implementation of
mortgage restructuring and rental assistance sufficiency plans.
(2) Contents.--The report submitted under paragraph (1) shall
include--
(A) a description of the initial audit conducted under
subsection (a); and
(B) recommendations for any legislative action to increase
the financial savings to the Federal Government of the
restructuring of eligible multifamily housing projects balanced
with the continued availability of the maximum number of
affordable low-income housing units.

7e4f3bc3b2dbbe24e2a284ab09998ba5acaaeb79b3cf4d86c66e535b4eabc628

(a) Rulemaking and Implementation.--
(1) Interim regulations.--The Director shall issue such interim
regulations as may be necessary to implement this subtitle and the
amendments made by this subtitle with respect to eligible
multifamily housing projects covered by contracts described in
section 512(2)(B) that expire in fiscal year 1999 or thereafter.
If, before the expiration of such period, the Director has not been
appointed, the Secretary shall issue such interim regulations.
(2) Final regulations.--The Director shall issue final
regulations necessary to implement this subtitle and the amendments
made by this subtitle with respect to eligible multifamily housing
projects covered by contracts described in section 512(2)(B) that
expire in fiscal year 1999 or thereafter before the later of: (A)
the expiration of the 12-month period beginning upon the date of
the enactment of this Act; and (B) the 3-month period beginning
upon the appointment of the Director under subtitle D.
(3) Factors for consideration.--Before the publication of the
final regulations under paragraph (2), in addition to public
comments invited in connection with publication of the interim
rule, the Secretary shall--
(A) seek recommendations on the implementation of sections
513(b) and 515(c)(1) from organizations repre- senting--
(i) State housing finance agencies and local housing
agencies;
(ii) other potential participating administering
entities;
(iii) tenants;
(iv) owners and managers of eligible multifamily
housing projects;
(v) States and units of general local government; and
(vi) qualified mortgagees; and
(B) convene not less than 3 public forums at which the
organizations making recommendations under subparagraph (A) may
express views concerning the proposed disposition of the
recommendations.
(b) Transition Provision for Contracts Expiring in Fiscal Year
1998.--Notwithstanding any other provision of law, the Secretary shall
apply all the terms of section 211 and section 212 of the Departments
of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1997 (except for section 212(h)(1)(G) and
the limitation in section 212(k)) contracts for project-based
assistance that expire during fiscal year 1998 (in the same manner that
such provisions apply to expiring contracts defined in section
212(a)(3) of such Act), except that section 517(a) of the Act shall
apply to mortgages on projects subject to such contracts.

49b656b74feedb8e0e200a35fd3b2b256911ad2b54b25c8a517d192a66794061

(a) Calculation of Limit on Project-Based Assistance.--Section 8(d)
of the United States Housing Act of 1937 (42 U.S.C. 1437f(d)) is
amended by adding at the end the following:
``(5) Calculation of limit.--Any contract entered into under
section 514 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 shall be excluded in computing the limit
on project-based assistance under this subsection.''.
(b) Partial Payment of Claims on Multifamily Housing Projects.--
Section 541 of the National Housing Act (12 U.S.C. 1735f-19) is
amended--
(1) in subsection (a), in the subsection heading, by striking
``Authority'' and inserting ``Defaulted Mortgages'';
(2) by redesignating subsection (b) as subsection (c); and
(3) by inserting after subsection (a) the following:
``(b) Existing Mortgages.--Notwithstanding any other provision of
law, the Secretary, in connection with a mortgage restructuring under
section 514 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997, may make a one time, nondefault partial
payment of the claim under the mortgage insurance contract, which shall
include a determination by the Secretary or the participating
administrative entity, in accordance with the Multifamily Assisted
Housing Reform and Affordability Act of 1997, of the market value of
the project and a restructuring of the mortgage, under such terms and
conditions as are permitted by section 517(a) of such Act.''.
(c) Reuse and Rescission of Certain Recaptured Budget Authority.--
Section 8(bb) of the United States Housing Act of 1937 (42 U.S.C.
1437f(bb)) is amended--
(1) by inserting after ``(bb)'' the following:
``Transfer, Reuse, and Rescission of Budget Authority.--
``(1)''; and
(2) by inserting the following new paragraph at the end:
``(2) Reuse and rescission of certain recaptured budget
authority.--Notwithstanding paragraph (1), if a project-based
assistance contract for an eligible multifamily housing project
subject to actions authorized under title I is terminated or
amended as part of restructuring under section 517 of the
Multifamily Assisted Housing Reform and Affordability Act of 1997,
the Secretary shall recapture the budget authority not required for
the terminated or amended contract and use such amounts as are
necessary to provide housing assistance for the same number of
families covered by such contract for the remaining term of such
contract, under a contract providing for project-based or tenant-
based assistance. The amount of budget authority saved as a result
of the shift to project-based or tenant-based assistance shall be
rescinded.''.
(d) Section 8 Contract Renewals.--Section 405(a) of the Balanced
Budget Downpayment Act, I (42 U.S.C. 1437f note) is amended by striking
``For'' and inserting ``Notwithstanding part 24 of title 24 of the Code
of Federal Regulations, for''.
(e) Renewal Upon Request of Owner.--Section 211(b)(3) of the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997 (Public Law 104-204; 110
Stat. 2896) is amended--
(1) by striking the paragraph heading and inserting the
following:
``(3) Exemption of certain other projects.--''; and
(2) by striking ``section 202 projects, section 811 projects
and section 515 projects'' and inserting ``section 202 projects,
section 515 projects, projects with contracts entered into pursuant
to section 441 of the Stewart B. McKinney Homeless Assistance Act,
and projects with rents that exceed 100 percent of fair market rent
for the market area, but that are less than rents for comparable
projects''.
(f) Extension of Demonstration Contract Period.--Section 212(g) of
the Departments of Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1997 (Public Law 104-204)
is amended--
(1) by inserting ``(1)'' after ``(g)'';
(2) by inserting before the period at the end the following:
``or in paragraph (2)''; and
(3) by adding at the end the following:
``(2) The Secretary may renew a demonstration contract for an
additional period of not to exceed 120 days, if--
``(A) the contract was originally executed before February 1,
1997, and the Secretary determines, in the sole discretion of the
Secretary, that the renewal period for the contract needs to exceed
1 year, due to delay of publication of the Secretary's
demonstration program guidelines until January 23, 1997 (not to
exceed 21 projects); or
``(B) the contract was originally executed before October 1,
1997, in connection with a project that has been identified for
restructuring under the joint venture approach described in section
VII.B.2. of the Secretary's demonstration program guidelines, and
the Secretary determines, in the sole discretion of the Secretary,
that the renewal period for the contract needs to exceed 1 year,
due to delay in implementation of the joint venture agreement
required by the guidelines (not to exceed 25 projects).''.

a81e255f0a89dddea2ca1ed341ab35d24ea119a01ae18df2ab06d84644230017

(a) Section 8 Contract Renewal Authority.--
(1)  In general.--Notwithstanding part 24 of title 24 of the
Code of Federal Regulations and subject to section 516 of this
subtitle, for fiscal year 1999 and henceforth, the Secretary may
use amounts available for the renewal of assistance under section 8
of the United States Housing Act of 1937, upon termination or
expiration of a contract for assistance under section 8 (other than
a contract for tenant-based assistance and notwithstanding section
8(v) of such Act for loan management assistance), to provide
assistance under section 8 of such Act at rent levels that do not
exceed comparable market rents for the market area. The assistance
shall be provided in accordance with terms and conditions
prescribed by the Secretary.
(2) Exception projects.--Notwithstanding paragraph (1), upon
the request of the owner, the Secretary shall renew an expiring
contract in accordance with terms and conditions prescribed by the
Secretary at the lesser of: (i) existing rents, adjusted by an
operating cost adjustment factor established by the Secretary; (ii)
a level that provides income sufficient to support a budget-based
rent (including a budget-based rent adjustment if justified by
reasonable and expected operating expenses); or (iii) in the case
of a contract under the moderate rehabilitation program, other than
a moderate rehabilitation contract under section 441 of the Stewart
B. McKinney Homeless Assistance Act, the base rent adjusted by an
operating cost adjustment factor established by the Secretary, for
the following categories of multifamily housing projects--
(A) projects for which the primary financing or mortgage
insurance was provided by a unit of State government or a unit
of general local government (or an agency or instrumentality of
either) and is not insured under the National Housing Act;
(B) projects for which the primary financing was provided
by a unit of State government or a unit or general local
government (or an agency or instrumentality of either) and the
financing involves mortgage insurance under the National
Housing Act, such that the implementation of a mortgage
restructuring and rental assistance sufficiency plan under this
Act is in conflict with applicable law or agreements governing
such financing;
(C) projects financed under section 202 of the Housing Act
of 1959 or section 515 of the Housing Act of 1949;
(D) projects that have an expiring contract under section 8
of the United States Housing Act of 1937 pursuant to section
441 of the Stewart B. McKinney Homeless Assistance Act; and
(E) projects that do not qualify as eligible multifamily
housing projects pursuant to section 512(2) of this subtitle.
Subtitle B--Miscellaneous Provisions

2872601407dbd6c89bac5b5201204f78d8ecea438f0bd3f67ce655d529b01d9a

Section 236 of the National Housing Act (12 U.S.C. 1715z-1) is
amended by adding at the end the following:
``(s) Grant Authority.--
``(1) In general.--The Secretary may make grants for the
capital costs of rehabilitation to owners of projects that meet the
eligibility and other criteria set forth in, and in accordance
with, this subsection.
``(2) Project eligibility.--A project may be eligible for
capital grant assistance under this subsection--
``(A) if--
``(i) the project is or was insured under any provision
of title II of the National Housing Act;
``(ii) the project was assisted under section 8 of the
United States Housing Act of 1937 on the date of enactment
of the Multifamily Assisted Housing Reform and
Affordability Act of 1997; and
``(iii) the project mortgage was not held by a State
agency as of the date of enactment of the Multifamily
Assisted Housing Reform and Affordability Act of 1997;
``(B) if the project owner agrees to maintain the housing
quality standards as required by the Secretary;
``(C)(i) if the Secretary determines that the owner or
purchaser of the project has not engaged in material adverse
financial or managerial actions or omissions with regard to
such project; or
``(ii) if the Secretary elects to make such determination,
that the owner or purchaser of the project has not engaged in
material adverse financial or managerial actions or omissions
with regard to other projects of such owner or purchaser that
are federally assisted or financed with a loan from, or
mortgage insured or guaranteed by, an agency of the Federal
Government;
``(iii) material adverse financial or managerial actions or
omissions, as the terms are used in this subparagraph,
include--
``(I) materially violating any Federal, State, or local
law or regulation with regard to this project or any other
federally assisted project, after receipt of notice and an
opportunity to cure;
``(II) materially breaching a contract for assistance
under section 8 of the United States Housing Act of 1937,
after receipt of notice and an opportunity to cure;
``(III) materially violating any applicable regulatory
or other agreement with the Secretary or a participating
administrative entity, after receipt of notice and an
opportunity to cure;
``(IV) repeatedly failing to make mortgage payments at
times when project income was sufficient to maintain and
operate the property;
``(V) materially failing to maintain the property
according to housing quality standards after receipt of
notice and a reasonable opportunity to cure; or
``(VI) committing any act or omission that would
warrant suspension or debarment by the Secretary; and
``(iv) the term `owner' as used in this subparagraph, in
addition to it having the same meaning as in section 8(f) of
the United States Housing Act of 1937, also means an affiliate
of the owner; the term `purchaser' as used in this subsection
means any private person or entity, including a cooperative, an
agency of the Federal Government, or a public housing agency,
that, upon purchase of the project, would have the legal right
to lease or sublease dwelling units in the project, and also
means an affiliate of the purchaser; the terms `affiliate of
the owner' and `affiliate of the purchaser' means any person or
entity (including, but not limited to, a general partner or
managing member, or an officer of either) that controls an
owner or purchaser, is controlled by an owner or purchaser, or
is under common control with the owner or purchaser; the term
`control' means the direct or indirect power (under contract,
equity ownership, the right to vote or determine a vote, or
otherwise) to direct the financial, legal, beneficial or other
interests of the owner or purchaser; and
``(D) if the project owner demonstrates to the satisfaction
of the Secretary--
``(i) using information in a comprehensive needs
assessment, that capital grant assistance is needed for
rehabilitation of the project; and
``(ii) that project income is not sufficient to support
such rehabilitation.
``(3) Eligible purposes.--The Secretary may make grants to the
owners of eligible projects for the purposes of--
``(A) payment into project replacement reserves;
``(B) debt service payments on non-Federal rehabilitation
loans; and
``(C) payment of nonrecurring maintenance and capital
improvements, under such terms and conditions as are determined
by the Secretary.
``(4) Grant agreement.--
``(A) In general.--The Secretary shall provide in any grant
agreement under this subsection that the grant shall be
terminated if the project fails to meet housing quality
standards, as applicable on the date of enactment of the
Multifamily Assisted Housing Reform and Affordability Act of
1997, or any successor standards for the physical conditions of
projects, as are determined by the Secretary.
``(B) Affordability and use clauses.--The Secretary shall
include in a grant agreement under this subsection a
requirement for the project owners to maintain such
affordability and use restrictions as the Secretary determines
to be appropriate.
``(C) Other terms.--The Secretary may include in a grant
agreement under this subsection such other terms and conditions
as the Secretary determines to be necessary.
``(5) Delegation.--
``(A) In general.--In addition to the authorities set forth
in subsection (p), the Secretary may delegate to State and
local governments the responsibility for the administration of
grants under this subsection. Any such government may carry out
such delegated responsibilities directly or under contracts.
``(B) Administration costs.--In addition to other eligible
purposes, amounts of grants under this subsection may be made
available for costs of administration under subparagraph (A).
``(6) Funding.--
``(A) In general.--For purposes of carrying out this
subsection, the Secretary may make available amounts that are
unobligated amounts for contracts for interest reduction
payments--
``(i) that were previously obligated for contracts for
interest reduction payments under this section until the
insured mortgage under this section was extinguished;
``(ii) that become available as a result of the
outstanding principal balance of a mortgage having been
written down;
``(iii) that are uncommitted balances within the
limitation on maximum payments that may have been, before
the date of enactment of the Multifamily Assisted Housing
Reform and Affordability Act of 1997, permitted in any
fiscal year; or
``(iv) that become available from any other source.
``(B) Liquidation authority.--The Secretary may liquidate
obligations entered into under this subsection under section
1305(10) of title 31, United States Code.
``(C) Capital grants.--In making capital grants under the
terms of this subsection, using the amounts that the Secretary
has recaptured from contracts for interest reduction payments,
the Secretary shall ensure that the rates and amounts of
outlays do not at any time exceed the rates and amounts of
outlays that would have been experienced if the insured
mortgage had not been extinguished or the principal amount had
not been written down, and the interest reduction payments that
the Secretary has recaptured had continued in accordance with
the terms in effect immediately prior to such extinguishment or
write-down.''.

6c739cea1c57f0fa562d19fb667ea1f1b8d9df6d08f3b7ed05eaebddd2bddad4

HOUSING PROJECTS.
Not later than the expiration of the 18-month period beginning on
the date of the enactment of this Act, the Comptroller General of the
United States shall submit a report to the Congress analyzing--
(1) the housing projects for which project-based assistance is
provided under section 8 of the United States Housing Act of 1937,
but which are not subject to a mortgage insured or held by the
Secretary under the National Housing Act;
(2) how State and local housing finance agencies have benefited
financially from the rental assistance program under section 8 of
the United States Housing Act of 1937, including any benefits from
fees, bond financings, and mortgage refinancings; and
(3) the extent and effectiveness of State and local housing
finance agencies oversight of the physical and financial management
and condition of multifamily housing projects for which project-
based assistance is provided under section 8 of the United States
Housing Act of 1937.
Subtitle C--Enforcement Provisions

e018454763fcee926832edc8d404a3c8673cb6ae8d021285abddc6ff16467520

(a) Issuance of Necessary Regulations.--Notwithstanding section
7(o) of the Department of Housing and Urban Development Act or part 10
of title 24, Code of Federal Regulations (as in existence on the date
of enactment of this Act), the Secretary shall issue such regulations
as the Secretary determines to be necessary to implement this subtitle
and the amendments made by this subtitle in accordance with section 552
or 553 of title 5, United States Code, as determined by the Secretary.
(b) Use of Existing Regulations.--In implementing any provision of
this subtitle, the Secretary may, in the discretion of the Secretary,
provide for the use of existing regulations to the extent appropriate,
without rulemaking.

4c67e1958ae3f16fb054cdaa6cdce855b0efb6bd9944a06850e59fb8d8a2e1d2

(a) Reinstitution of Requirements Regarding HUD Access to Certain
Information of State Agencies.--
(1) In general.--Section 303(i) of the Social Security Act is
amended by striking paragraph (5).
(2) Effective date.--The amendment made by this subsection
shall apply to any request for information made after the date of
the enactment of this Act.
(b) Repeal of Termination Regarding Housing Assistance Programs.--
Section 6103(l)(7)(D) of the Internal Revenue Code of 1986 is amended
by striking the last sentence.
Part 1--FHA Single Family and Multifamily Housing

65471014bed602d1caac8eda80c06954f660ff88bbbce756dcefe7e0e7b197cc

Section 202(c)(3)(C) of the National Housing Act (12 U.S.C.
1708(c)(3)(C)) is amended by inserting after the first sentence the
following: ``Notwithstanding paragraph (4)(A), a suspension shall be
effective upon issuance by the Board if the Board determines that there
exists adequate evidence that immediate action is required to protect
the financial interests of the Department or the public.''.

1e353526c6fd364533ca3057ea7366facc5302b23bdbfeddf12eda6e6f10c4a4

MULTIFAMILY HOUSING PROGRAMS.
Section 254 of the National Housing Act (12 U.S.C. 1715z-19) is
amended to read as follows:
``SEC. 254. EQUITY SKIMMING PENALTY.
``(a) In General.--Whoever, as an owner, agent, or manager, or who
is otherwise in custody, control, or possession of a multifamily
project or a 1- to 4-family residence that is security for a mortgage
note that is described in subsection (b), willfully uses or authorizes
the use of any part of the rents, assets, proceeds, income, or other
funds derived from property covered by that mortgage note for any
purpose other than to meet reasonable and necessary expenses that
include expenses approved by the Secretary if such approval is
required, in a period during which the mortgage note is in default or
the project is in a nonsurplus cash position, as defined by the
regulatory agreement covering the property, or the mortgagor has failed
to comply with the provisions of such other form of regulatory control
imposed by the Secretary, shall be fined not more than $500,000,
imprisoned not more than 5 years, or both.
``(b) Mortgage Notes Described.--For purposes of subsection (a), a
mortgage note is described in this subsection if it--
``(1) is insured, acquired, or held by the Secretary pursuant
to this Act;
``(2) is made pursuant to section 202 of the Housing Act of
1959 (including property still subject to section 202 program
requirements that existed before the date of enactment of the
Cranston-Gonzalez National Affordable Housing Act); or
``(3) is insured or held pursuant to section 542 of the Housing
and Community Development Act of 1992, but is not reinsured under
section 542 of the Housing and Community Development Act of
1992.''.

a2f315dff83edd594d5f711e03dfad20f7cd83d512341790265f5682d3b06d3c

PARTICIPANTS IN FHA PROGRAMS.
(a) Change to Section Title.--Section 536 of the National Housing
Act (12 U.S.C. 1735f-14) is amended by striking the section heading and
the section designation and inserting the following:
``SEC. 536. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND
OTHER PARTICIPANTS IN FHA PROGRAMS.''.
(b) Expansion of Persons Eligible for Penalty.--Section 536(a) of
the National Housing Act (12 U.S.C. 1735f-14(a)) is amended--
(1) in paragraph (1), by striking the first sentence and
inserting the following: ``If a mortgagee approved under the Act, a
lender holding a contract of insurance under title I, or a
principal, officer, or employee of such mortgagee or lender, or
other person or entity participating in either an insured mortgage
or title I loan transaction under this Act or providing assistance
to the borrower in connection with any such loan, including sellers
of the real estate involved, borrowers, closing agents, title
companies, real estate agents, mortgage brokers, appraisers, loan
correspondents and dealers, knowingly and materially violates any
applicable provision of subsection (b), the Secretary may impose a
civil money penalty on the mortgagee or lender, or such other
person or entity, in accordance with this section. The penalty
under this paragraph 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.''; and
(2) in paragraph (2)--
(A) in the first sentence, by inserting ``or such other
person or entity'' after ``lender''; and
(B) in the second sentence, by striking ``provision'' and
inserting ``the provisions''.
(c) Additional Violations for Mortgagees, Lenders, and Other
Participants in FHA Programs.--Section 536(b) of the National Housing
Act (12 U.S.C. 1735f-14(b)) is amended--
(1) by redesignating paragraph (2) as paragraph (3);
(2) by inserting after paragraph (1) the following:
``(2) The Secretary may impose a civil money penalty under
subsection (a) for any knowing and material violation by a
principal, officer, or employee of a mortgagee or lender, or other
participants in either an insured mortgage or title I loan
transaction under this Act or provision of assistance to the
borrower in connection with any such loan, including sellers of the
real estate involved, borrowers, closing agents, title companies,
real estate agents, mortgage brokers, appraisers, loan
correspondents, and dealers for--
``(A) 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;
``(B) falsely certifying to the Secretary or submitting to
the Secretary a false certification by another person or
entity; or
``(C) failure by a loan correspondent or dealer to submit
to the Secretary information which is required by regulations
or directives in connection with any loan that is covered by a
contract of insurance under title I.''; and
(3) in paragraph (3), as redesignated, by striking ``or
paragraph (1)(F)'' and inserting ``or (F), or paragraph (2)(A),
(B), or (C)''.
(d) Conforming and Technical Amendments.--Section 536 of the
National Housing Act (12 U.S.C. 1735f-14) is amended--
(1) in subsection (c)(1)(B), by inserting after ``lender'' the
following: ``or such other person or entity'';
(2) in subsection (d)(1)--
(A) by inserting ``or such other person or entity'' after
``lender''; and
(B) by striking ``part 25'' and inserting ``parts 24 and
25''; and
(3) in subsection (e), by inserting ``or such other person or
entity'' after ``lender'' each place that term appears.
Part 2--FHA Multifamily Provisions

eb585cba60013a86d85018c382fa1df8fc2733b680998fd3b2cc68e936693265

DIRECTORS, AND CERTAIN MANAGING AGENTS OF MULTIFAMILY
PROJECTS.
(a) Civil Money Penalties Against Multifamily Mortgagors.--Section
537 of the National Housing Act (12 U.S.C. 1735f-15) is amended--
(1) in subsection (b)(1), by striking ``on that mortgagor'' and
inserting ``on that mortgagor, on a general partner of a
partnership mortgagor, or on any officer or director of a corporate
mortgagor'';
(2) in subsection (c)--
(A) by striking the subsection heading and inserting the
following:
``(c) Other Violations.--''; and
(B) in paragraph (1)--
(i) by striking ``Violations.--The Secretary may'' and
all that follows through the colon and inserting the
following:
``(A) Liable parties.--The Secretary may also impose a
civil money penalty under this section on--
``(i) any mortgagor of a property that includes 5 or
more living units and that has a mortgage insured,
coinsured, or held pursuant to this Act;
``(ii) any general partner of a partnership mortgagor
of such property;
``(iii) any officer or director of a corporate
mortgagor;
``(iv) any agent employed to manage the property that
has an identity of interest with the mortgagor, with the
general partner of a partnership mortgagor, or with any
officer or director of a corporate mortgagor of such
property; or
``(v) any member of a limited liability company that is
the mortgagor of such property or is the general partner of
a limited partnership mortgagor or is a partner of a
general partnership mortgagor.
``(B) Violations.--A penalty may be imposed under this
section upon any liable party under subparagraph (A) that
knowingly and materially takes any of the following actions:'';
(ii) in subparagraph (B), as designated by clause (i),
by redesignating the subparagraph designations (A) through
(L) as clauses (i) through (xii), respectively;
(iii) by adding after clause (xii), as redesignated by
clause (ii), the following:
``(xiii) Failure to maintain the premises,
accommodations, any living unit in the project, and the
grounds and equipment appurtenant thereto in good repair
and condition in accordance with regulations and
requirements of the Secretary, except that nothing in this
clause shall have the effect of altering the provisions of
an existing regulatory agreement or federally insured
mortgage on the property.
``(xiv) Failure, by a mortgagor, a general partner of a
partnership mortgagor, or an officer or director of a
corporate mortgagor, to provide management for the project
that is acceptable to the Secretary pursuant to regulations
and requirements of the Secretary.
``(xv) Failure to provide access to the books, records,
and accounts related to the operations of the mortgaged
property and of the project.''; and
(iv) in the last sentence, by deleting ``of such
agreement'' and inserting ``of this subsection'';
(3) in subsection (d)--
(A) in paragraph (1)(B), by inserting after ``mortgagor''
the following: ``, general partner of a partnership mortgagor,
officer or director of a corporate mortgagor, or identity of
interest agent employed to manage the property''; and
(B) by adding at the end the following:
``(5) Payment of penalty.--No payment of a civil money penalty
levied under this section shall be payable out of project
income.'';
(4) in subsection (e)(1), by deleting ``a mortgagor'' and
inserting ``an entity or person'';
(5) in subsection (f), by inserting after ``mortgagor'' each
place such term appears the following: ``, general partner of a
partnership mortgagor, officer or director of a corporate
mortgagor, or identity of interest agent employed to manage the
property'';
(6) by striking the heading of subsection (f) and inserting the
following: ``Civil Money Penalties Against Multifamily Mortgagors,
General Partners of Partnership Mortgagors, Officers and Directors
of Corporate Mortgagors, and Certain Managing Agents''; and
(7) by adding at the end the following:
``(k) Identity of Interest Managing Agent.--In this section, the
terms `agent employed to manage the property that has an identity of
interest' and `identity of interest agent' mean an entity--
``(1) that has management responsibility for a project;
``(2) in which the ownership entity, including its general
partner or partners (if applicable) and its officers or directors
(if applicable), has an ownership interest; and
``(3) over which the ownership entity exerts effective
control.''.
(b) Implementation.--
(1) Public comment.--The Secretary shall implement the
amendments made by this section by regulation issued after notice
and opportunity for public comment. The notice shall seek comments
primarily as to the definitions of the terms ``ownership interest
in'' and ``effective control'', as those terms are used in the
definition of the terms ``agent employed to manage the property
that has an identity of interest'' and ``identity of interest
agent''.
(2) Timing.--A proposed rule implementing the amendments made
by this section shall be published not later than 1 year after the
date of enactment of this Act.
(c) Applicability of Amendments.--The amendments made by subsection
(a) shall apply only with respect to--
(1) violations that occur on or after the effective date of the
final regulations implementing the amendments made by 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 that occurs on or after that date.

838815178b227eef401e3bcc890f05cf96326485873250ab032068f0e6e46a4b

CONTRACTS.
(a) Basic Authority.--Title I of the United States Housing Act of
1937 (42 U.S.C. 1437 et seq.) is amended--
(1) by designating the second section designated as section 27
(as added by section 903(b) of Public Law 104-193 (110 Stat. 2348))
as section 28; and
(2) by adding at the end the following:
``SEC. 29. CIVIL MONEY PENALTIES AGAINST SECTION 8 OWNERS.
``(a) In General.--
``(1) Effect on other remedies.--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
regardless of whether the Secretary imposes other administrative
sanctions.
``(2) Failure of secretary.--The Secretary may not impose
penalties under this section for a violation, if a material cause
of the violation is the failure of the Secretary, an agent of the
Secretary, or a public housing agency to comply with an existing
agreement.
``(b) Violations of Housing Assistance Payment Contracts for Which
Penalty May Be Imposed.--
``(1) Liable parties.--The Secretary may impose a civil money
penalty under this section on--
``(A) any owner of a property receiving project-based
assistance under section 8;
``(B) any general partner of a partnership owner of that
property; and
``(C) any agent employed to manage the property that has an
identity of interest with the owner or the general partner of a
partnership owner of the property.
``(2) Violations.--A penalty may be imposed under this section
for a knowing and material breach of a housing assistance payments
contract, including the following--
``(A) failure to provide decent, safe, and sanitary housing
pursuant to section 8; or
``(B) knowing or willful submission of false, fictitious,
or fraudulent statements or requests for housing assistance
payments to the Secretary or to any department or agency of the
United States.
``(3) Amount of penalty.--The amount of a penalty imposed for a
violation under this subsection, as determined by the Secretary,
may not exceed $25,000 per violation.
``(c) Agency Procedures.--
``(1) Establishment.--The Secretary shall issue regulations
establishing standards and procedures governing the imposition of
civil money penalties under subsection (b). These standards and
procedures--
``(A) shall provide for the Secretary or other department
official to make the determination to impose the penalty;
``(B) shall provide for the imposition of a penalty only
after the liable party has received notice and the 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 and judicial review, as provided under subsection (d).
``(2) Final orders.--
``(A) In general.--If a hearing is not requested before the
expiration of the 15-day period beginning on the date on which
the notice of opportunity for hearing is received, the
imposition of a penalty under subsection (b) shall constitute a
final and unappealable determination.
``(B) Effect of review.--If the Secretary reviews the
determination or order, the Secretary may affirm, modify, or
reverse that determination or order.
``(C) Failure to review.--If the Secretary does not review
that determination or order before the expiration of the 90-day
period beginning on the date on which the determination or
order is issued, the determination or order shall be final.
``(3) Factors in determining amount of penalty.--In determining
the amount of a penalty under subsection (b), the Secretary shall
take into consideration--
``(A) the gravity of the offense;
``(B) any history of prior offenses by the violator
(including offenses occurring before the enactment of this
section);
``(C) the ability of the violator to pay the penalty;
``(D) any injury to tenants;
``(E) any injury to the public;
``(F) any benefits received by the violator as a result of
the violation;
``(G) deterrence of future violations; and
``(H) such other factors as the Secretary may establish by
regulation.
``(4) Payment of penalty.--No payment of a civil money penalty
levied under this section shall be payable out of project income.
``(d) Judicial Review of Agency Determination.--Judicial review of
determinations made under this section shall be carried out in
accordance with section 537(e) of the National Housing Act.
``(e) Remedies for Noncompliance.--
``(1) Judicial intervention.--
``(A) In general.--If a person or entity fails to comply
with the determination or order of the Secretary imposing a
civil money penalty under subsection (b), after the
determination or order is no longer subject to review as
provided by subsections (c) 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 that person or entity and such other
relief as may be available.
``(B) Fees and expenses.--Any monetary judgment awarded in
an action brought under this paragraph may, in the discretion
of the court, include the attorney's fees and other expenses
incurred by the United States in connection with the action.
``(2) Nonreviewability of determination or order.--In an action
under this subsection, the validity and appropriateness of the
determination or order of the Secretary 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) Deposit of Penalties.--
``(1) In general.--Notwithstanding any other provision of law,
if the mortgage covering the property receiving assistance under
section 8 is insured or was formerly insured by the Secretary, the
Secretary shall apply all civil money penalties collected under
this section to the appropriate insurance fund or funds established
under this Act, as determined by the Secretary.
``(2) Exception.--Notwithstanding any other provision of law,
if the mortgage covering the property receiving assistance under
section 8 is neither insured nor formerly insured by the Secretary,
the Secretary shall make all civil money penalties collected under
this section available for use by the appropriate office within the
Department for administrative costs related to enforcement of the
requirements of the various programs administered by the Secretary.
``(h) Definitions.--In this section--
``(1) the term `agent employed to manage the property that has
an identity of interest' means an entity--
``(A) that has management responsibility for a project;
``(B) in which the ownership entity, including its general
partner or partners (if applicable), has an ownership interest;
and
``(C) over which such ownership entity exerts effective
control; and
``(2) the term `knowing' means having actual knowledge of or
acting with deliberate ignorance of or reckless disregard for the
prohibitions under this section.''.
(b) Applicability.--The amendments made by subsection (a) shall
apply only with respect to--
(1) violations that occur on or after the effective date of
final regulations implementing the amendments made by 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 that occurs on or after such date.
(c) Implementation.--
(1) Regulations.--
(A) In general.--The Secretary shall implement the
amendments made by this section by regulation issued after
notice and opportunity for public comment.
(B) Comments sought.--The notice under subparagraph (A)
shall seek comments as to the definitions of the terms
``ownership interest in'' and ``effective control'', as such
terms are used in the definition of the term ``agent employed
to manage such property that has an identity of interest''.
(2) Timing.--A proposed rule implementing the amendments made
by this section shall be published not later than 1 year after the
date of enactment of this Act.

eb703a857061080267f522ce81c3520bb006c2c9d3c21d28309182a09892a7bd

Section 421 of the Housing and Community Development Act of 1987
(12 U.S.C. 1715z-4a) is amended--
(1) in subsection (a)(1)--
(A) in the first sentence, by striking ``Act; or (B)'' and
inserting the following: ``Act; (B) a regulatory agreement that
applies to a multifamily project whose mortgage is insured or
held by the Secretary under section 202 of the Housing Act of
1959 (including property subject to section 202 of such Act as
it existed before enactment of the Cranston-Gonzalez National
Affordable Housing Act of 1990); (C) a regulatory agreement or
such other form of regulatory control as may be imposed by the
Secretary that applies to mortgages insured or held by the
Secretary under section 542 of the Housing and Community
Development Act of 1992, but not reinsured under section 542 of
the Housing and Community Development Act of 1992; or (D)'';
and
(B) in the second sentence, by inserting after
``agreement'' the following: ``, or such other form of
regulatory control as may be imposed by the Secretary,'';
(2) in subsection (a)(2), by inserting after ``Act,'' the
following: ``under section 202 of the Housing Act of 1959
(including section 202 of such Act as it existed before enactment
of the Cranston-Gonzalez National Affordable Housing Act of 1990)
and under section 542 of the Housing and Community Development Act
of 1992,'';
(3) in subsection (b), by inserting after ``agreement'' the
following: ``, or such other form of regulatory control as may be
imposed by the Secretary,'';
(4) in subsection (c)--
(A) in the first sentence, by inserting after ``agreement''
the following: ``, or such other form of regulatory control as
may be imposed by the Secretary,''; and
(B) in the second sentence, by inserting before the period
the following: ``or, in the case of any project for which the
mortgage is held by the Secretary under section 202 of the
Housing Act of 1959 (including property subject to section 202
of such Act as it existed before enactment of the Cranston-
Gonzalez National Affordable Housing Act of 1990), to the
project or to the Department for use by the appropriate office
within the Department for administrative costs related to
enforcement of the requirements of the various programs
administered by the Secretary, as appropriate''; and
(5) in subsection (d), by inserting after ``agreement'' the
following: ``, or such other form of regulatory control as may be
imposed by the Secretary,''.

dddbdba26b151dbe88cf58fc9cbd43c25d2d5634fc30b047a4bdd671af4993e7

Section 1516(a) of title 18, United States Code, is amended by
inserting after ``under a contract or subcontract,'' the following:
``or relating to any property that is security for a mortgage note that
is insured, guaranteed, acquired, or held by the Secretary of Housing
and Urban Development pursuant to any Act administered by the
Secretary,''.
Subtitle D--Office of Multifamily Housing Assistance Restructuring

6b478f71bf2411effe53ab6db19bbe2816957ef49396f568df578b6725b9e0b2

RESTRUCTURING.
There is hereby established an office within the Department of
Housing and Urban Development, which shall be known as the Office of
Multifamily Housing Assistance Restructuring.

d6d0b47ddab20b19163dc77e81c6680635864f983ca26b15ef693aa88a1cef0e

(a) Appointment.--The Office shall be under the management of a
Director, who shall be appointed by the President by and with the
advice and consent of the Senate, from among individuals who are
citizens of the United States and have a demonstrated understanding of
financing and mortgage restructuring for affordable multifamily
housing. Not later than 60 days after the date of the enactment of this
Act, the President shall submit to the Senate a nomination for initial
appointment to the position of Director.
(b) Vacancy.--A vacancy in the position of Director shall be filled
in the manner in which the original appointment was made under
subsection (a).
(c) Deputy Director.--
(1) In general.--The Office shall have a Deputy Director who
shall be appointed by the Director from among individuals who are
citizens of the United States and have a demonstrated understanding
of financing and mortgage restructuring for affordable multifamily
housing.
(2) Functions.--The Deputy Director shall have such functions,
powers, and duties as the Director shall prescribe. In the event of
the death, resignation, sickness, or absence of the Director, the
Deputy Director shall serve as acting Director until the return of
the Director or the appointment of a successor pursuant to
subsection (b).

7acf2b8df2c0d944cf20d1ab9aec6fe38dcc44df4c598ce2a72dc0eeae94aaa5

(a) Duty.--The Secretary shall, acting through the Director,
administer the program of mortgage and rental assistance restructuring
for eligible multifamily housing projects under subtitle A. During the
period before the Director is appointed, the Secretary may carry out
such program.
(b) Authority.--The Director is authorized to make such
determinations, take such actions, issue such regulations, and perform
such functions assigned to the Director under law as the Director
determines necessary to carry out such functions, subject to the review
and approval of the Secretary. The Director shall semiannually submit a
report to the Secretary regarding the activities, determinations, and
actions of the Director.
(c) Delegation of Authority.--The Director may delegate to officers
and employees of the Office (but not to contractors, subcontractors, or
consultants) any of the functions, powers, and duties of the Director,
as the Director considers appropriate.
(d) Independence in Providing Information to Congress.--
(1) In general.--Notwithstanding subsection (a) or (b), the
Director shall not be required to obtain the prior approval,
comment, or review of any officer or agency of the United States
before submitting to the Congress, or any committee or subcommittee
thereof, any reports, recommendations, testimony, or comments if
such submissions include a statement indicating that the views
expressed therein are those of the Director and do not necessarily
represent the views of the Secretary or the President.
(2) Requirement.--If the Director determines at any time that
the Secretary is taking or has taken any action that interferes
with the ability of the Director to carry out the duties of the
Director under this Act or that affects the administration of the
program under subtitle A of this Act in a manner that is
inconsistent with the purposes of this Act, including any proposed
action by the Director, in the discretion of the Director, that is
overruled by the Secretary, the Director shall immediately report
directly to the Committee on Banking and Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate regarding such action. Notwithstanding
subsection (a) or (b), any determination or report under this
paragraph by the Director shall not be subject to prior review or
approval of the Secretary.

ecbda041a264b11aa985c6527439c882643c5cbffdfdbbd520539c740056515d

(a) Office Personnel.--The Director may appoint and fix the
compensation of such officers and employees of the Office as the
Director considers necessary to carry out the functions of the Director
and the Office. Officers and employees may be paid without regard to
the provisions of chapter 51 and subchapter III of chapter 53 of title
5, United States Code, relating to classification and General Schedule
pay rates.
(b) Comparability of Compensation With Federal Banking Agencies.--
In fixing and directing compensation under subsection (a), the Director
shall consult with, and maintain comparability with compensation of
officers and employees of the Federal Deposit Insurance Corporation.
(c) Personnel of Other Federal Agencies.--In carrying out the
duties of the Office, the Director may use information, services,
staff, and facilities of any executive agency, independent agency, or
department on a reimbursable basis, with the consent of such agency or
department.
(d) Outside Experts and Consultants.--The Director may procure
temporary and intermittent services under section 3109(b) of title 5,
United States Code.

86c159d794948c0a8b322f13f753d6b2f9e8a35c8ee41a65a9523a9edb5c08db

(a) Financial Operating Plans and Forecasts.--Before the beginning
of each fiscal year, the Secretary shall submit a copy of the financial
operating plans and forecasts for the Office to the Director of the
Office of Management and Budget.
(b) Reports of Operations.--As soon as practicable after the end of
each fiscal year and each quarter thereof, the Secretary shall submit a
copy of the report of the results of the operations of the Office
during such period to the Director of the Office of Management and
Budget.
(c) Inclusion in President's Budget.--The annual plans, forecasts,
and reports required under this section shall be included: (1) in the
Budget of the United States in the appropriate form; and (2) in the
congressional justifications of the Department of Housing and Urban
Development for each fiscal year in a form determined by the Secretary.

9b0b796ad29b1b3fbd946ff8867a2af509515e0baf74f37ef1b9eee03b118109

Neither the Director nor any former officer or employee of the
Office who, while employed by the Office, was compensated at a rate in
excess of the lowest rate for a position classified higher than GS-15
of the General Schedule under section 5107 of title 5, United States
Code, may, during the 2-year period beginning on the date of separation
from employment by the Office, accept compensation from any party
(other than a Federal agency) having any financial interest in any
mortgage restructuring and rental assistance sufficiency plan under
subtitle A or comparable matter in which the Director or such officer
or employee had direct participation or supervision.

bdec61646f57dff636a8268b7e2e173eea700eae87f76ba7a2dc0bdf50768a79

The Comptroller General shall audit the operations of the Office in
accordance with generally accepted Government auditing standards. All
books, records, accounts, reports, files, and property belonging to, or
used by, the Office shall be made available to the Comptroller General.
Audits under this section shall be conducted annually for the first 2
fiscal years following the date of the enactment of this Act and as
appropriate thereafter.

015891ccc8fd4800511f84e7a31247d1f7cd4e480ab094bd00c73a0b3d34810c

(a) In General.--If, upon the expiration of the 12-month period
beginning on the date of the enactment of this Act, the initial
appointment to the office of Director has not been made, the operation
of the program under subtitle A shall immediately be suspended and such
provisions shall not have any force or effect during the period that
ends upon the making of such appointment.
(b) Interim applicability of demonstration program.--
Notwithstanding any other provision of law, during the period referred
to in subsection (a), the Secretary shall carry out sections 211 and
212 of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1997. For
purposes of applying such sections pursuant to the authority under this
section, the term ``expiring contract'' shall have the meaning given in
such sections, except that such term shall also include any contract
for project-based assistance under section 8 of the United States
Housing Act of 1937 that expires during the period that the program is
suspended under subsection (a).

eb0d5e1e7af88ac4fcbbbc2361ef627dad79727aea87a799139d45e21ade99e4

(a) Repeal.--Subtitle A (except for section 524) and subtitle D
(except for this section) are repealed effective October 1, 2001.
(b) Exception.--Notwithstanding the repeal under subsection (a),
the provisions of subtitle A (as in effect immediately before such
repeal) shall apply with respect to projects and programs for which
binding commitments have been entered into under this Act before
October 1, 2001.
(c) Termination of Director and Office.--The Office of Multifamily
Housing Assistance Restructuring and the position of Director of such
Office shall terminate upon September 30, 2001.
(d) Transfer of Authority.--Effective upon the termination under
subsection (c), any authority and responsibilities assigned to the
Director that remain applicable after such date pursuant to subsection
(b) are transferred to the Secretary.
This Act may be cited as the ``Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1998''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

c714b566175f161563674dcb37b05f4659eb94533ab1cdb8a146d6a5c3e44ad4

Appropriations bill FY98, Veterans Affairs, HUD — HR. 2158

Other Sections

TITLE IV

TITLE V

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