[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[S. 1299 Enrolled Bill (ENR)]
<DOC>
S.1299
One Hundred Third Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-fifth day of January, one thousand nine hundred and ninety-
four
An Act
To amend section 203 of the Housing and Community Development
Amendments of 1978 to provide for the disposition of multifamily
properties owned by the Secretary of Housing and Urban Development, to
provide for other reforms in programs administered by the Secretary, and
to make certain technical amendments, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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(a) Short Title._This Act may be cited as the ``Multifamily Housing
Property Disposition Reform Act of 1994''.
(b) Table of Contents._

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TITLE I_MULTIFAMILY PROPERTY DISPOSITION REFORM

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TITLE II_OTHER PROGRAM REFORMS
Subtitle A_Home Investment Partnerships Program

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family homes program.
Subtitle C_Community Development Block Grants

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DEMONSTRATION.
Section 184 of the Housing and Community Development Act of 1987
(12 U.S.C. 1701z-11 note) is hereby repealed.

a57e808123954c9367c4215d5087b495b874ced71081f41f4221b03faf1d7b20

(a) Multifamily Housing Planning and Investment Strategies._
(1) Preparation of assessments for independent entities._
Section 402(a) of the Housing and Community Development Act of 1992
(12 U.S.C. 1715-1a note) is amended by adding at the end the
following new sentence: ``The assessment shall be prepared by an
entity that does not have an identity of interest with the
owner.''.
(2) Timing of submission of needs assessments._Section 402(b)
of the Housing and Community Development Act of 1992 (12 U.S.C.
1715z-1a note) is amended to read as follows:
``(b) Timing._To ensure that assessments for all covered
multifamily housing properties will be submitted on or before the
conclusion of fiscal year 1997, the Secretary shall require the owners
of such properties, including covered multifamily housing properties
for the elderly, to submit the assessments for the properties in
accordance with the following schedule:
``(1) For fiscal year 1994, 10 percent of the aggregate number
of such properties.
``(2) For each of fiscal years 1995, 1996, and 1997, an
additional 30 percent of the aggregate number of such
properties.''.
(3) Review of comprehensive needs assessments._Section 404(d)
of the Housing and Community Development Act of 1992 (12 U.S.C.
1715-1a note) is amended to read as follows:
``(d) Review._
``(1) In general._The Secretary shall review each comprehensive
needs assessment for completeness and adequacy before the
expiration of the 90-day period beginning on the receipt of the
assessment and shall notify the owner of the property for which the
assessment was submitted of the findings of such review.
``(2) Incomplete or inadequate assessments._If the Secretary
determines that the assessment is substantially incomplete or
inadequate, the Secretary shall_
``(A) notify the owner of the portion or portions of the
assessment requiring completion or other revision; and
``(B) require the owner to submit an amended assessment to
the Secretary not later than 30 days after such
notification.''.
(4) Repeal of notice provision._Section 404 of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715-1a note) is
amended by striking subsection (f).
(5) Publication._Section 404 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-1a note), as amended by
paragraph (4) of this subsection, is further amended by inserting
after subsection (e) the following new subsection:
``(f) Publication of Method for Receiving Capital Needs
Assessment._The Secretary shall cause to be published in the Federal
Register the method by which the Secretary determines which capital
needs assessments will be received each year in accordance with section
402(b) and subsection (d) of this section.''.
(6) Funding._Title IV of the Housing and Community Development
Act of 1992 (12 U.S.C. 1715z-1a note) is amended by adding at the
end the following new section:
``SEC. 409. FUNDING.
``(a) Allocation of Assistance._Based upon needs identified in
comprehensive needs assessments, and subject to otherwise applicable
program requirements, including selection criteria, the Secretary may
allocate the following assistance to owners of covered multifamily
housing projects and may provide such assistance on a noncompetitive
basis:
``(1) Operating assistance and capital improvement assistance
for troubled multifamily housing projects pursuant to section 201
of the Housing and Community Development Amendments of 1978, except
for assistance set aside under section 201(n)(1).
``(2) Loan management assistance available pursuant to section
8 of the United States Housing Act of 1937.
``(b) Operating Assistance and Capital Improvement Assistance._In
providing assistance under subsection (a) the Secretary shall use the
selection criteria set forth in section 201(n) of the Housing and
Community Development Amendments of 1978.
``(c) Amount of Assistance._The Secretary may fund all or only a
portion of the needs identified in the capital needs assessment of an
owner selected to receive assistance under this section.''.
(b) Flexible Subsidy Program._
(1) Deletion of utility cost requirements._Section 201(i) of
the Housing and Community Development Amendments of 1978 (12 U.S.C.
1715z-1a(i)) is hereby repealed.
(2) Repeal of mandatory contribution from owner._Section
201(k)(2) of the Housing and Community Development Amendments of
1978 (12 U.S.C. 1715z-1a(k)(2)) is amended by striking ``, except
that'' and all that follows and inserting a period.
(3) Funding._Section 201(n) of the Housing and Community
Development Amendments of 1978 (42 U.S.C. 1715z-1a(n)) is amended
to read as follows:
``(n) Allocation of Assistance._
``(1) Set-aside._In providing, and contracting to provide,
assistance for capital improvements under this section, in each
fiscal year the Secretary shall set aside an amount, as determined
by the Secretary, for projects that are eligible for incentives
under section 224(b) of the Emergency Low Income Housing
Preservation Act of 1987, as such section existed before the date
of enactment of the Cranston-Gonzalez National Affordable Housing
Act. The Secretary may make such assistance available on a
noncompetitive basis.
``(2) General rules for allocation._Except as provided in
paragraph (3), with respect to assistance under this section not
set aside for projects under paragraph (1), the Secretary_
``(A) may award assistance on a noncompetitive basis; and
``(B) shall award assistance to eligible projects on the
basis of_
``(i) the extent to which the project is physically or
financially troubled, as evidenced by the comprehensive
needs assessment submitted in accordance with title IV of
the Housing and Community Development Act of 1992; and
``(ii) the extent to which such assistance is necessary
and reasonable to prevent the default of federally insured
mortgages.
``(3) Exceptions._The Secretary may make exceptions to
selection criteria set forth in paragraph (2)(B) to permit the
provision of assistance to eligible projects based upon_
``(A) the extent to which such assistance is necessary to
prevent the imminent foreclosure or default of a project whose
owner has not submitted a comprehensive needs assessment
pursuant to title IV of the Housing and Community Development
Act of 1992;
``(B) the extent to which the project presents an imminent
threat to the life, health, and safety of project residents; or
``(C) such other criteria as the Secretary may specify by
regulation or by notice printed in the Federal Register.
``(4) Considerations._In providing assistance under this
section, the Secretary shall take into consideration_
``(A) the extent to which there is evidence that there will
be significant opportunities for residents (including a
resident council or resident management corporation, as
appropriate) to be involved in the management of the project
(except that this paragraph shall have no application to
projects that are owned as cooperatives); and
``(B) the extent to which there is evidence that the
project owner has provided competent management and complied
with all regulatory and administrative requirements.''.
(4) Repeal._Section 201 of the Housing and Community
Development Amendments of 1978 (12 U.S.C. 1715z-1a) is amended_
(A) by striking subsection (o); and
(B) by redesignating subsection (p) as subsection (o).
(c) Implementation and Effective Dates for Subsections (a) and
(b)._
(1) In general._Except as provided in paragraph (2), the
amendments made by subsections (a) and (b) shall apply with respect
to amounts made available for fiscal year 1994 and fiscal years
thereafter.
(2) Exception._Section 201(n)(1) of the Housing and Community
Development Amendments of 1978 (as added by the amendment made by
subsection (b)(3) of this section) shall take effect on the date of
enactment of this Act.
(3) Notice._The Secretary shall, by notice published in the
Federal Register, establish any requirements necessary to implement
the amendments made by subsections (a) and (b). The notice shall
invite public comments and, not later than 12 months after the date
on which the notice is published, the Secretary shall issue final
regulations based on the initial notice, taking into consideration
any public comments received.
(d) Streamlined Refinancing._As soon as practicable, the Secretary
shall implement a streamlined refinancing program under the authority
provided in section 223 of the National Housing Act to prevent the
default of mortgages insured by the FHA which cover multifamily housing
projects, as defined in section 203(b) of the Housing and Community
Development Amendments of 1978.
(e) GAO Study on Prevention of Default._
(1) In general._Not later than April 1, 1995, the Comptroller
General of the United States shall submit to the Committee on
Banking, Finance and Urban Affairs of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate a report that evaluates the adequacy of loan loss reserves
in the General Insurance and Special Risk Insurance Funds and
presents recommendations for the Secretary to prevent losses from
occurring.
(2) Contents._The report submitted under paragraph (1) shall_
(A) evaluate the factors considered in arriving at loss
estimates and determine whether other factors should be
considered;
(B) determine the relative benefit of creating a new,
actuarially sound insurance fund for all new multifamily
housing insurance commitments; and
(C) recommend alternatives to the Secretary's current
procedures for preventing the future default of multifamily
housing project mortgages insured under title II of the
National Housing Act.
(f) GAO Study on Actuarial Soundness of Certain Insurance
Programs._
(1) In general._Not later than April 1, 1995, the Comptroller
General of the United States shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee
on Banking, Finance and Urban Affairs of the House of
Representatives a report that evaluates, in connection with the
General Insurance Fund, the role and performance of the nursing
home, hospital, and retirement service center insurance programs.
(2) Contents._The reports submitted under paragraph (1) shall_
(A) evaluate the strategic importance of these insurance
programs to the mission of the FHA;
(B) evaluate the impact of these insurance programs upon
the financial performance of the General Insurance Fund;
(C) assess the potential losses expected under these
programs through fiscal year 1999;
(D) evaluate the risk of these programs to the General
Insurance Fund in connection with changes in national health
care policy;
(E) assess the ability of the FHA to manage these programs;
and
(F) make recommendations for any necessary changes.
(g) Risk Assessment._
(1) Special risk insurance fund._Section 238(c) of the National
Housing Act (12 U.S.C. 1715z-3(c)) is amended by adding at the end
the following new paragraph:
``(3) The Secretary shall undertake an annual assessment of the
risks associated with each of the insurance programs comprising the
Special Risk Insurance Fund, and shall present findings from such
review to the Congress in the FHA Annual Management Report.''.
(2) General insurance fund._Section 519 of the National Housing
Act (12 U.S.C. 1735c) is amended by adding at the end the following
new subsection:
``(g) Risk Assessment._The Secretary shall undertake an annual
assessment of the risks associated with each of the insurance programs
comprising the General Insurance Fund, and shall present findings from
such review to the Congress in the FHA Annual Management Report.''.
(h) Alternative Uses for Prevention of Default._
(1) In general._Subject to notice to and comment by existing
tenants, to prevent the imminent default of a multifamily housing
project subject to a mortgage insured under title II of the
National Housing Act, the Secretary may authorize the mortgagor to
use the project for purposes not contemplated by or permitted under
the regulatory agreement, if_
(A) such other uses are acceptable to the Secretary;
(B) such other uses would be otherwise insurable under
title II of the National Housing Act;
(C) the outstanding principal balance on the mortgage
covering such project is not increased;
(D) any financial benefit accruing to the mortgagor shall,
subject to the discretion of the Secretary, be applied to
project reserves or project rehabilitation; and
(E) such other use serves a public purpose.
(2) Displacement protection._The Secretary may take actions
under paragraph (1) only if_
(A) tenant-based rental assistance under section 8 of the
United States Housing Act of 1937 is made available to each
eligible family residing in the project that is displaced as a
result of such actions; and
(B) the Secretary determines that sufficient habitable,
affordable (as such term is defined in section 203(b) of the
Housing and Community Development Amendments of 1978) rental
housing is available in the market area in which the project is
located to ensure use of such assistance.
(3) Implementation._The Secretary shall, by notice published in
the Federal Register, which shall take effect upon publication,
establish such requirements as may be necessary to implement the
amendments made by this subsection. The notice shall invite public
comments and, not later than 12 months after the date on which the
notice is published, the Secretary shall issue final regulations
based on the initial notice, taking into account any public
comments received.

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Section 7(i)(5) of the Department of Housing and Urban Development
Act (42 U.S.C. 3535(i)(5)) is amended by striking the first semicolon,
and all that follows through ``as determined by the Secretary''.

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(a) Special Risk Insurance Fund._Section 238(b) of the National
Housing Act (12 U.S.C. 1715z-3(b)) is amended by striking the fifth
sentence.
(b) General Insurance Fund._Section 519 of the National Housing Act
(12 U.S.C. 1735c) is amended_
(1) by striking subsection (f); and
(2) by redesignating subsection (g) (as added by section
103(g)(2) of this Act) as subsection (f).
(c) Multifamily Insurance Fund Appropriations._Title V of the
National Housing Act (12 U.S.C. 1731a et seq.) is amended by adding
after section 541 (as added by section 101(e) of this Act) the
following new section:
``SEC. 542. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL AND SPECIAL
RISK INSURANCE FUNDS.
``There are authorized to be appropriated such sums as may be
necessary for each of fiscal years 1994 and 1995, to be allocated in
any manner that the Secretary determines appropriate, for the following
costs incurred in conjunction with programs authorized under the
General Insurance Fund, as provided by section 519, and the Special
Risk Insurance Fund, as provided by section 238:
``(1) The cost to the Government, as defined in section 502 of
the Congressional Budget Act, of new insurance commitments.
``(2) The cost to the Government, as defined in section 502 of
the Congressional Budget Act, of modifications to existing loans,
loan guarantees, or insurance commitments.
``(3) The cost to the Government, as defined in section 502 of
the Congressional Budget Act, of loans provided under section
203(f) of the Housing and Community Development Amendments of 1978.
``(4) The costs of the rehabilitation of multifamily housing
projects (as defined in section 203(b) of the Housing and Community
Development Amendments of 1978) upon disposition by the
Secretary.''.
TITLE II_OTHER PROGRAM REFORMS
Subtitle A_Home Investment Partnerships Program

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Section 104(2) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12704(2)) is amended_
(1) by striking ``and'' after ``Columbia,''; and
(2) by inserting before the period at the end the following:
``, or any agency or instrumentality thereof that is established
pursuant to legislation and designated by the chief executive
officer to act on behalf of the State with regard to the provisions
of this Act''.

320f4cb66bdfaa4e069ede2b26dec6fdb920e47da0c35db831ca7828096f448a

HOUSING.
Section 214(1) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12744(1)) is amended_
(1) in subparagraph (A)_
(A) by striking ``such funds are invested with respect to
dwelling units that are occupied by'' and inserting ``(i) the
families receiving such rental assistance are''; and
(B) by striking ``, and'' and inserting ``, or (ii) the
dwelling units assisted with such funds are occupied by
families having such incomes; and''; and
(2) in subparagraph (B)_
(A) by striking ``such funds are invested with respect to
dwelling units that are occupied by'' and inserting ``(i) the
families receiving such rental assistance are''; and
(B) by inserting before the semicolon at the end the
following: ``, or (ii) the dwelling units assisted with such
funds are occupied by such households''.

5e2e32ba756bc58280522c60380feb317c21492e52c9ece2c79b6b37abb30359

(a) Removal of First-Time Homebuyer Requirement._Section 215(b) of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745(b)) is amended_
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as paragraphs (3)
and (4), respectively.
(b) Simplification of Resale Provisions._Section 215(b)(3)(B) of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745(b)(3)(B)), as so redesignated by subsection (a) of this section,
is amended by striking ``subsection'' and inserting ``title''.

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Section 220(a) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12750(a)) is amended to read as follows:
``(a) Contribution._Each participating jurisdiction shall make
contributions to housing that qualifies as affordable housing under
this title that total, throughout a fiscal year, not less than 25
percent of the funds drawn from the jurisdiction's HOME Investment
Trust Fund in such fiscal year. Such contributions shall be in addition
to any amounts made available under section 216(3)(A)(ii).''.

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Section 283 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12833) is amended_
(1) by striking the section designation and heading and
inserting the following:
``SEC. 283. AUDITS BY COMPTROLLER GENERAL.'';
(2) by striking subsection (a);
(3) in subsection (b)_
(A) by striking ``(b) Audits by the Comptroller General._
'';
(B) by redesignating paragraphs (1) and (2) as subsections
(a) and (b), respectively; and
(C) by moving subsections (a) and (b), as so redesignated
by subparagraph (B), 2 ems to the left so that such subsections
are flush with the left margin; and
(4) in subsection (a), as so redesignated by paragraph (3)(B),
by striking the second sentence.

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Section 288 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12838) is amended_
(1) in subsection (a)_
(A) in the first sentence, by striking ``participating
jurisdictions'' and inserting ``jurisdictions, Indian tribes,
or insular areas''; and
(B) by adding at the end the following new sentences: ``The
regulations shall provide_
``(1) for the monitoring of the environmental reviews performed
under this section;
``(2) in the discretion of the Secretary, to facilitate
training for the performance of such reviews; and
``(3) for the suspension or termination of the assumption under
this section.
The Secretary's duty under the preceding sentence shall not be
construed to limit or reduce any responsibility assumed by a State or
unit of general local government with respect to any particular release
of funds.'';
(2) in the first sentence of subsection (b), by striking
``participating jurisdiction'' and inserting ``jurisdiction, Indian
tribe, or insular area'';
(3) in subsection (c)(4)(B), by striking ``participating
jurisdiction'' and inserting ``jurisdiction, Indian tribe, or
insular area''; and
(4) in subsection (d), by striking ``Assistance to a State._In
the case of assistance to States'' and inserting the following:
``Assistance to Units of General Local Government From a State._In
the case of assistance to units of general local government from a
State''.

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(a) Administrative Expenses._Section 105(a)(13) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(a)(13)) is amended by
inserting after ``charges related to'' the following: ``(A)
administering the HOME program under title II of the Cranston-Gonzalez
National Affordable Housing Act; and (B)''.
(b) Project Delivery Costs._Section 105(a)(21) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(a)(21)) is amended_
(1) by inserting ``in connection with tenant-based rental
assistance and affordable housing projects assisted under title II
of the Cranston-Gonzalez National Affordable Housing Act'' after
``housing counseling''; and
(2) by striking ``authorized'' and all that follows through
``any law'' and inserting ``assisted under title II of the
Cranston-Gonzalez National Affordable Housing Act''.

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Title II of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12721 et seq.) is amended by adding at the end the following
new section:
``SEC. 290. SUSPENSION OF REQUIREMENTS FOR DISASTER AREAS.
``For funds designated under this title by a recipient to address
the damage in an area for which the President has declared a disaster
under title IV of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act, the Secretary may suspend all statutory requirements
for purposes of assistance under this title for that area, except for
those related to public notice of funding availability,
nondiscrimination, fair housing, labor standards, environmental
standards, and low-income housing affordability.''.

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The amendments made by this title shall apply with respect to any
amounts made available to carry out title II of the Cranston-Gonzalez
National Affordable Housing Act after the date of the enactment of this
Act and any amounts made available to carry out such title before such
date of enactment that remain uncommitted on such date. The Secretary
shall issue any regulations necessary to carry out the amendments made
by this title not later than the expiration of the 45-day period
beginning on the date of the enactment of this Act.
Subtitle B_HOPE Homeownership Program

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FAMILY HOMES PROGRAM.
Section 443(c)(1) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12893(c)(1)) is amended by striking ``33
percent'' and inserting ``25 percent''.
Subtitle C_Community Development Block Grants

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The first sentence of section 108(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5308(a)) is amended_
(1) by striking ``or'' after ``section 105(a);''; and
(2) by inserting before the period the following: ``; (5) the
acquisition, construction, reconstruction, or installation of
public facilities (except for buildings for the general conduct of
government); or (6) in the case of colonias (as such term is
defined in section 916 of the Cranston-Gonzalez National Affordable
Housing Act), public works and site or other improvements''.

602b35f82ec577a76b2fbae12bc31209cac7a8e0ded17b1775431955eae25d57

(a) Grants._
(1) In general._Section 108 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5308) is amended by adding at
the end the following new subsection:
``(q) Economic Development Grants._
``(1) Authorization._The Secretary may make grants in
connection with notes or other obligations guaranteed under this
section to eligible public entities for the purpose of enhancing
the security of loans guaranteed under this section or improving
the viability of projects financed with loans guaranteed under this
section.
``(2) Eligible activities._Assistance under this subsection may
be used only for the purposes of and in conjunction with projects
and activities assisted under subsection (a).
``(3) Applications._Applications for assistance under this
subsection may be submitted only by eligible public entities, and
shall be in the form and in accordance with the procedures
established by the Secretary. Eligible public entities may apply
for grants only in conjunction with requests for guarantees under
subsection (a).
``(4) Selection criteria._The Secretary shall establish
criteria for awarding assistance under this subsection. Such
criteria shall include_
``(A) the extent of need for such assistance;
``(B) the level of distress in the community to be served
and in the jurisdiction applying for assistance;
``(C) the quality of the plan proposed and the capacity or
potential capacity of the applicant to successfully carry out
the plan; and
``(D) such other factors as the Secretary determines to be
appropriate.''.
(2) Conforming amendment._Title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) is amended_
(A) in section 101(c) in the second sentence, by inserting
``or a grant'' after ``guarantee''; and
(B) in section 104(b)(3), by inserting ``or a grant'' after
``guarantee''.
(b) Use of UDAG Recaptures._Section 119(o) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5318(o)) is amended by
inserting before the period the following: ``, except that amounts
available to the Secretary for use under this subsection as of October
1, 1993, and amounts released to the Secretary pursuant to subsection
(t) may be used to provide grants under section 108(q).''.
(c) UDAG Retention Program._
(1) Amendment._Section 119 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5318) is amended by adding at
the end the following new subsection:
``(t) UDAG Retention Program._If a grant or a portion of a grant
under this section remains unexpended upon the issuance of a notice
implementing this subsection, the grantee may enter into an agreement,
as provided under this subsection, with the Secretary to receive a
percentage of the grant amount and relinquish all claims to the balance
of the grant within 90 days of the issuance of notice implementing this
subsection (or such later date as the Secretary may approve). The
Secretary shall not recapture any funds obligated pursuant to this
section during a period beginning on the date of enactment of the
Multifamily Housing Property Disposition Reform Act of 1994 until 90
days after the issuance of a notice implementing this subsection. A
grantee may receive as a grant under this subsection_
``(1) 33 percent of such unexpended amounts if_
``(A) the grantee agrees to expend not less than one-half
of the amount received for activities authorized pursuant to
section 108(q) and to expend such funds in conjunction with a
loan guarantee made under section 108 at least equal to twice
the amount of the funds received; and
``(B)(i) the remainder of the amount received is used for
economic development activities eligible under title I of this
Act; and
``(ii) except when waived by the Secretary in the case of a
severely distressed jurisdiction, not more than one-half of the
costs of activities under subparagraph (B) are derived from
such unexpended amounts; or
``(2) 25 percent of such unexpended amounts if_
``(A) the grantee agrees to expend such funds for economic
development activities eligible under title I of this Act; and
``(B) except when waived by the Secretary in the case of a
severely distressed jurisdiction, not more than one-half of the
costs of such activities are derived from such unexpended
amount.''.
(2) Implementation._Not later than 10 days after the date of
enactment of this Act, the Secretary shall, by notice published in
the Federal Register, which shall take effect upon publication,
establish such requirements as may be necessary to implement the
amendments made by this subsection.

6d03b055f86726c28a8f4bc6da578fa15ac3477cc532df51114b4d143a00253a

Section 108 of the Housing and Community Development Act of 1974
(42 U.S.C. 5308) is amended by adding after subsection (q) (as added by
section 232(a)(1) of this Act) the following new subsection:
``(r) Guarantee of Obligations Backed by Loans._
``(1) Authority._The Secretary may, upon such terms and
conditions as the Secretary considers appropriate, guarantee the
timely payment of the principal of and interest on such trust
certificates or other obligations as may_
``(A) be offered by the Secretary or by any other offeror
approved for purposes of this subsection by the Secretary; and
``(B) be based on and backed by a trust or pool composed of
notes or other obligations guaranteed or eligible for guarantee
by the Secretary under this section.
``(2) Full faith and credit._To the same extent as provided in
subsection (f), the full faith and credit of the United States is
pledged to the payment of all amounts that may be required to be
paid under any guarantee made by the Secretary under this
subsection.
``(3) Subrogation._If the Secretary pays a claim under a
guarantee made under this section, the Secretary shall be
subrogated for all the rights of the holder of the guaranteed
certificate or obligation with respect to such certificate or
obligation.
``(4) Effect of laws._No State or local law, and no Federal
law, shall preclude or limit the exercise by the Secretary of_
``(A) the power to contract with respect to public
offerings and other sales of notes, trust certificates, and
other obligations guaranteed under this section upon such terms
and conditions as the Secretary deems appropriate;
``(B) the right to enforce any such contract by any means
deemed appropriate by the Secretary; and
``(C) any ownership rights of the Secretary, as applicable,
in notes, certificates, or other obligations guaranteed under
this section, or constituting the trust or pool against which
trust certificates, or other obligations guaranteed under this
section, are offered.''.

d6cb48c856b71bfac4c752469373e1216354c0417b35f551eef0156898463b09

Title I of the Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.) is amended by adding at the end the following new
section:
``SEC. 122. SUSPENSION OF REQUIREMENTS FOR DISASTER AREAS.
``For funds designated under this title by a recipient to address
the damage in an area for which the President has declared a disaster
under title IV of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act, the Secretary may suspend all requirements for purposes
of assistance under section 106 for that area, except for those related
to public notice of funding availability, nondiscrimination, fair
housing, labor standards, environmental standards, and requirements
that activities benefit persons of low- and moderate-income.''.
TITLE III_TECHNICAL AMENDMENTS

8ab03ff70fb724f434af4b80bfdf34fc0a4c6bd9fddbe23fd524825a218a922f

The first sentence of section 3(b)(3)(B) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(3)(B)) is amended by striking
``means families with children'' and inserting ``includes families with
children and''.

33cbead12f1d09c460619b9598be648c10fbc063b2fe1479f01d5cb8fb470f4e

NEEDS.
Section 14 of the United States Housing Act of 1937 (42 U.S.C.
1437l) is amended_
(1) in subsection (d)_
(A) by striking paragraph (2);
(B) in paragraph (4), in the matter preceding subparagraph
(A)_
(i) by striking ``and replacements,''; and
(ii) by striking ``(1), (2), and (3)'' and inserting
``(1) and (2)''; and
(C) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively; and
(2) in subsection (f)(1)_
(A) in subparagraph (A), by striking ``(d)(4)(A)'' and
inserting ``(d)(3)(A)'';
(B) by striking subparagraph (B);
(C) in subparagraph (C), by striking ``(d)(4)'' and
inserting ``(d)(3)'';
(D) in subparagraph (D)_
(i) by striking ``(1), (2), and (3)'' and inserting
``(1) and (2)''; and
(ii) by striking ``(d)(4)'' and inserting ``(d)(3)'';
and
(E) by redesignating subparagraphs (C) and (D), as so
amended, as subparagraphs (B) and (C), respectively;
(3) in subsection (g), by striking ``(d)(4)'' and inserting
``(d)(3)''; and
(4) in subsection (h)(2), by striking ``(d)(4)'' and inserting
``(d)(3)''.

a7d729a0ca37f5acb988141c8889dc03717976ae284f25069860eccefc21807d

Section 6(c)(4)(E) of the United States Housing Act of 1937 (42
U.S.C. 1437d(c)(4)(E)) is amended by striking ``250'' and inserting
``500''.

6dae92bf789fbe2fe6de84275e7ab9ddad47d7b956ad50d9c528420b58e1b881

RECOVERIES.
Section 9(a) of the United States Housing Act of 1937 (42 U.S.C.
1437g(a)) is amended by adding at the end the following new paragraph:
``(4) Adjustments to a public housing agency's operating subsidy
made by the Secretary under this section shall reflect actual changes
in rental income collections resulting from the application of section
904 of the Stewart B. McKinney Homeless Assistance Amendments Act of
1988.''.

07876808904a93520e18f5f47022c5a5d1c1c41b23d113b55b819726b26571c2

(a) Lead-Based Paint Hazard Reduction._Section 1011 of the Housing
and Community Development Act of 1992 (42 U.S.C. 4852) is amended_
(1) by redesignating subsection (o) as subsection (p); and
(2) by inserting after subsection (n) the following new
subsection:
``(o) Environmental Review._
``(1) In general._For purposes of environmental review,
decisionmaking, and action pursuant to the National Environmental
Policy Act of 1969 and other provisions of law that further the
purposes of such Act, a grant under this section shall be treated
as assistance under the HOME Investment Partnership Act,
established under title II of the Cranston-Gonzalez National
Affordable Housing Act, and shall be subject to the regulations
promulgated by the Secretary to implement section 288 of such Act.
``(2) Applicability._This subsection shall apply to_
``(A) grants awarded under this section; and
``(B) grants awarded to States and units of general local
government for the abatement of significant lead-based paint
and lead dust hazards in low- and moderate-income owner-
occupied units and low-income privately owned rental units
pursuant to title II of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1992 (Public Law 102-139, 105 Stat.
736).''.
(b) Programs Under United States Housing Act of 1937._Title I of
the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is
amended by adding at the end the following new section:
``SEC. 26. ENVIRONMENTAL REVIEWS.
``(a) In General._
``(1) Release of funds._In order to assure that the policies of
the National Environmental Policy Act of 1969 and other provisions
of law which further the purposes of such Act (as specified in
regulations issued by the Secretary) are most effectively
implemented in connection with the expenditure of funds under this
title, and to assure to the public undiminished protection of the
environment, the Secretary may, under such regulations, in lieu of
the environmental protection procedures otherwise applicable,
provide for the release of funds for projects or activities under
this title, as specified by the Secretary upon the request of a
public housing agency (including an Indian housing authority) under
this section, if the State or unit of general local government, as
designated by the Secretary in accordance with regulations, assumes
all of the responsibilities for environmental review,
decisionmaking, and action pursuant to such Act, and such other
provisions of law as the regulations of the Secretary may specify,
which would otherwise apply to the Secretary with respect to the
release of funds.
``(2) Implementation._The Secretary, after consultation with
the Council on Environmental Quality, shall issue such regulations
as may be necessary to carry out this section. Such regulations
shall specify the programs to be covered.
``(b) Procedure._The Secretary shall approve the release of funds
subject to the procedures authorized by this section only if, not less
than 15 days prior to such approval and prior to any commitment of
funds to such projects or activities, the public housing agency
(including an Indian housing authority) has submitted to the Secretary
a request for such release accompanied by a certification of the State
or unit of general local government which meets the requirements of
subsection (c). The Secretary's approval of any such certification
shall be deemed to satisfy the Secretary's responsibilities under the
National Environmental Policy Act of 1969 and such other provisions of
law as the regulations of the Secretary specify insofar as those
responsibilities relate to the release of funds which are covered by
such certification.
``(c) Certification._A certification under the procedures
authorized by this section shall_
``(1) be in a form acceptable to the Secretary;
``(2) be executed by the chief executive officer or other
officer of the State or unit of general local government who
qualifies under regulations of the Secretary;
``(3) specify that the State or unit of general local
government under this section has fully carried out its
responsibilities as described under subsection (a); and
``(4) specify that the certifying officer_
``(A) consents to assume the status of a responsible
Federal official under the National Environmental Policy Act of
1969 and each provision of law specified in regulations issued
by the Secretary insofar as the provisions of such Act or other
such provision of law apply pursuant to subsection (a); and
``(B) is authorized and consents on behalf of the State or
unit of general local government and himself or herself to
accept the jurisdiction of the Federal courts for the purpose
of enforcement of his or her responsibilities as such an
official.
``(d) Approval by States._In cases in which a unit of general local
government carries out the responsibilities described in subsection
(c), the Secretary may permit the State to perform those actions of the
Secretary described in subsection (b) and the performance of such
actions by the State, where permitted by the Secretary, shall be deemed
to satisfy the Secretary's responsibilities referred to in the second
sentence of subsection (b).''.
(c) Special Projects._
(1) In general._
(A) Release of funds._In order to assure that the policies
of the National Environmental Policy Act of 1969 and other
provisions of law which further the purposes of such Act (as
specified in regulations issued by the Secretary) are most
effectively implemented in connection with the expenditure of
funds for special projects appropriated under an appropriations
Act for the Department of Housing and Urban Development, such
as special projects under the head ``Annual Contributions for
Assisted Housing'' in title II of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1993, and to assure to the public
undiminished protection of the environment, the Secretary of
Housing and Urban Development may, under such regulations, in
lieu of the environmental protection procedures otherwise
applicable, provide for the release of funds for particular
special projects upon the request of recipients of special
projects assistance, if the State or unit of general local
government, as designated by the Secretary in accordance with
regulations, assumes all of the responsibilities for
environmental review, decisionmaking, and action pursuant to
such Act, and such other provisions of law as the regulations
of the Secretary specify, that would otherwise apply to the
Secretary were the Secretary to undertake such special projects
as Federal projects.
(B) Implementation._The Secretary shall issue regulations
to carry out this subsection only after consultation with the
Council on Environmental Quality. Such regulations shall_
(i) provide for monitoring of the performance of
environmental reviews under this subsection;
(ii) in the discretion of the Secretary, provide for
the provision or facilitation of training for such
performance; and
(iii) subject to the discretion of the Secretary,
provide for suspension or termination by the Secretary of
the assumption under subparagraph (A).
(C) Responsibilities of state or unit of general local
government._The Secretary's duty under subparagraph (B) shall
not be construed to limit any responsibility assumed by a State
or unit of general local government with respect to any
particular release of funds under subparagraph (A).
(2) Procedure._The Secretary shall approve the release of funds
for projects subject to the procedures authorized by this
subsection only if, not less than 15 days prior to such approval
and prior to any commitment of funds to such projects, the
recipient submits to the Secretary a request for such release,
accompanied by a certification of the State or unit of general
local government which meets the requirements of paragraph (3). The
Secretary's approval of any such certification shall be deemed to
satisfy the Secretary's responsibilities under the National
Environmental Policy Act of 1969 and such other provisions of law
as the regulations of the Secretary specify insofar as those
responsibilities relate to the releases of funds for special
projects to be carried out pursuant thereto which are covered by
such certification.
(3) Certification._A certification under the procedures
authorized by this subsection shall_
(A) be in a form acceptable to the Secretary;
(B) be executed by the chief executive officer or other
officer of the State or unit of general local government who
qualifies under regulations of the Secretary;
(C) specify that the State or unit of general local
government under this subsection has fully carried out its
responsibilities as described under paragraph (1); and
(D) specify that the certifying officer_
(i) consents to assume the status of a responsible
Federal official under the National Environmental Policy
Act of 1969 and each provision of law specified in
regulations issued by the Secretary insofar as the
provisions of such Act or other such provision of law apply
pursuant to paragraph (1); and
(ii) is authorized and consents on behalf of the State
or unit of general local government and himself or herself
to accept the jurisdiction of the Federal courts for the
purpose of enforcement of the responsibilities as such an
official.
(4) Approval by states._In cases in which a unit of general
local government carries out the responsibilities described in
paragraph (1), the Secretary may permit the State to perform those
actions of the Secretary described in paragraph (2) and the
performance of such actions by the State, where permitted by the
Secretary, shall be deemed to satisfy the Secretary's
responsibilities referred to in the second sentence of paragraph
(2).

610cb04c978609ac5771f6a02feff8598bc04e579a4b6eec234904833db4de01

The National Housing Act (12 U.S.C. 1701 et seq.) is amended in
sections 207(c)(3), 213(b)(2), 220(d)(3)(B)(iii), and 234(e)(3) by
striking ``$59,160'' each place it appears and inserting ``$56,160''.

3f9fdecace3f3cb79789ee0c44a6a0172e0160f6f0d6e9f2edb5fccfbf705a94

FINANCE AGENCY PILOT PROGRAMS.
(a) Risk-Sharing Pilot Program._Section 542(b) of the Housing and
Community Development Act of 1992 (12 U.S.C. 1707 note) is amended_
(1) by striking paragraphs (1) and (2) and inserting the
following new paragraphs:
``(1) In general._The Secretary shall carry out a pilot program
in conjunction with qualified participating entities to determine
the effectiveness of Federal credit enhancement for loans for
affordable multifamily housing through a system of risk-sharing
agreements with such entities.
``(2) Program requirements._
``(A) In general._In carrying out the pilot program under
this subsection, the Secretary shall enter into risk-sharing
agreements with qualified participating entities.
``(B) Mortgage insurance and reinsurance._Agreements under
subparagraph (A) may provide for (i) mortgage insurance through
the Federal Housing Administration of loans for affordable
multifamily housing originated by or through, or purchased by,
qualified participating entities, and (ii) reinsurance,
including reinsurance of pools of loans, on affordable
multifamily housing. In entering into risk-sharing agreements
under this subsection covering mortgages, the Secretary may
give preference to mortgages that are not already in the
portfolios of qualified participating entities.
``(C) Risk apportionment._Agreements entered into under
this subsection between the Secretary and a qualified
participating entity shall specify the percentage of loss that
each of the parties to the agreement will assume in the event
of default of the insured or reinsured multifamily mortgage.
Such agreements shall specify that the qualified participating
entity and the Secretary shall share any loss in accordance
with the risk-sharing agreement.
``(D) Reimbursement capacity._Agreements entered into under
this subsection between the Secretary and a qualified
participating entity shall provide evidence acceptable to the
Secretary of the capacity of such entity to fulfill any
reimbursement obligations made pursuant to this subsection.
Evidence of such capacity which may be considered by the
Secretary may include_
``(i) a pledge of the full faith and credit of a
qualified participating entity to fulfill any obligations
entered into by the entity;
``(ii) reserves pledged or otherwise restricted by the
qualified participating entity in an amount equal to an
agreed upon percentage of the loss assumed by the entity
under subparagraph (C);
``(iii) funds pledged through a State or local
guarantee fund; or
``(iv) any other form of evidence mutually agreed upon
by the Secretary and the qualified participating entity.
``(E) Underwriting standards._The Secretary shall allow any
qualified participating entity to use its own underwriting
standards and loan terms and conditions for purposes of
underwriting loans to be insured under this subsection, except
as provided in this section, without further review by the
Secretary, except that the Secretary may impose additional
underwriting criteria and loan terms and conditions for
contractual agreements where the Secretary retains more than 50
percent of the risk of loss. Any financing permitted on
property insured under this subsection other than the first
mortgage shall be expressly subordinate to the insured
mortgage.
``(F) Authority of secretary._The Secretary, upon request
of a qualified participating entity, may insure or reinsure and
make commitments to insure or reinsure under this section any
mortgage, advance, loan, or pool of mortgages otherwise
eligible under this section, pursuant to a risk-sharing
agreement providing that the qualified participating entity
will carry out (under a delegation or otherwise, and with or
without compensation, but subject to audit, exception, or
review requirements) such credit approval, appraisal,
inspection, issuance of commitments, approval of insurance of
advances, cost certification, servicing, property disposition,
or other functions as the Secretary shall approve as consistent
with the purpose of this section. All appraisals of property
for mortgage insurance under this section shall be completed by
a Certified General Appraiser in accordance with the Uniform
Standards of Professional Appraisal Practice.
``(G) Disclosure of records._Qualified participating
entities shall make available to the Secretary or the
Secretary's designee, at the Secretary's request, such
financial and other records as the Secretary deems necessary
for purposes of review and monitoring for the program under
this section.'';
(2) in paragraph (4), by striking ``financial institutions and
entities to be eligible to enter into reinsurance agreements'' and
inserting ``eligibility under this subsection of qualified
participating entities'';
(3) by striking paragraph (8) and inserting the following new
paragraph:
``(11) Implementation._The Secretary shall take any
administrative actions necessary to initiate the pilot program
under this subsection.''; and
(4) by inserting after paragraph (7) the following new
paragraphs:
``(8) Prohibition on ginnie mae securitization._The Government
National Mortgage Association shall not securitize any multifamily
loans insured or reinsured under this subsection.
``(9) Qualification as affordable housing._Multifamily housing
securing loans insured or reinsured under this subsection shall
qualify as affordable only if the housing is occupied by families
and bears rents not greater than the gross rent for rent-restricted
residential units as determined under section 42(g) of the Internal
Revenue Code of 1986.
``(10) Certification of subsidy layering compliance._The
requirements of section 102(d) of the Department of Housing and
Urban Development Reform Act of 1989 may be satisfied in connection
with a commitment to insure a mortgage under this subsection by a
certification by a housing credit agency (including an entity
established by a State that provides mortgage insurance) to the
Secretary that the combination of assistance within the
jurisdiction of the Secretary and other government assistance
provided in connection with a property for which a mortgage is to
be insured shall not be any greater than is necessary to provide
affordable housing.''.
(b) Housing Finance Agency Pilot Program._Section 542(c) of the
Housing and Community Development Act of 1992 (12 U.S.C. 1707 note) is
amended_
(1) in paragraph (1), by inserting after ``qualified housing
finance agencies'' the following: ``(including entities established
by States that provide mortgage insurance)'';
(2) in paragraph (2)_
(A) in subparagraph (C), by striking the last sentence and
inserting the following: ``Such agreements shall specify that
the qualified housing finance agency and the Secretary shall
share any loss in accordance with the risk-sharing
agreement.''; and
(B) by adding at the end the following new subparagraph:
``(F) Disclosure of records._Qualified housing finance
agencies shall make available to the Secretary such financial
and other records as the Secretary deems necessary for program
review and monitoring purposes.'';
(3) in paragraph (7)_
(A) by striking ``very low-income''; and
(B) by striking ``(2)''; and
(4) by adding at the end the following new paragraphs:
``(9) Environmental and other reviews._
``(A) Environmental reviews._
``(i) In general._(I) In order to assure that the
policies of the National Environmental Policy Act of 1969
and other provisions of law which further the purposes of
such Act (as specified in regulations issued by the
Secretary) are most effectively implemented in connection
with the insurance of mortgages under subsection (c)(2),
and to assure to the public undiminished protection of the
environment, the Secretary may, under such regulations, in
lieu of the environmental protection procedures otherwise
applicable, provide for agreements to endorse for insurance
mortgages under subsection (c)(2) upon the request of
qualified housing finance agencies under this subsection,
if the State or unit of general local government, as
designated by the Secretary in accordance with regulations,
assumes all of the responsibilities for environmental
review, decisionmaking, and action pursuant to such Act,
and such other provisions of law as the regulations of the
Secretary may specify, that would otherwise apply to the
Secretary with respect to the insurance of mortgages on
particular properties.
``(II) The Secretary shall issue regulations to carry
out this subparagraph only after consultation with the
Council on Environmental Quality. Such regulations shall,
among other matters, provide_
``(aa) for the monitoring of the performance of
environmental reviews under this subparagraph;
``(bb) subject to the discretion of the Secretary,
for the provision or facilitation of training for such
performance; and
``(cc) subject to the discretion of the Secretary,
for the suspension or termination by the Secretary of
the qualified housing finance agency's responsibilities
under subclause (I).
``(III) The Secretary's duty under subclause (II) shall
not be construed to limit any responsibility assumed by a
State or unit of general local government with respect to
any particular property under subclause (I).
``(ii) Procedure._The Secretary shall approve a
mortgage for the provision of mortgage insurance subject to
the procedures authorized by this paragraph only if, not
less than 15 days prior to such approval, prior to any
approval, commitment, or endorsement of mortgage insurance
on the property on behalf of the Secretary, and prior to
any commitment by the qualified housing finance agency to
provide financing under the risk-sharing agreement with
respect to the property, the qualified housing finance
agency submits to the Secretary a request for such
approval, accompanied by a certification of the State or
unit of general local government that meets the
requirements of clause (iii). The Secretary's approval of
any such certification shall be deemed to satisfy the
Secretary's responsibilities under the National
Environmental Policy Act of 1969 and such other provisions
of law as the regulations of the Secretary specify insofar
as those responsibilities relate to the provision of
mortgage insurance on the property that is covered by such
certification.
``(iii) Certification._A certification under the
procedures authorized by this paragraph shall_
``(I) be in a form acceptable to the Secretary;
``(II) be executed by the chief executive officer
or other officer of the State or unit of general local
government who qualifies under regulations of the
Secretary;
``(III) specify that the State or unit of general
local government under this section has fully carried
out its responsibilities as described under clause (i);
and
``(IV) specify that the certifying officer consents
to assume the status of a responsible Federal official
under the National Environmental Policy Act of 1969 and
under each provision of law specified in regulations
issued by the Secretary insofar as the provisions of
such Act or such other provisions of law apply pursuant
to clause (i), and is authorized and consents on behalf
of the State or unit of general local government and
himself or herself to accept the jurisdiction of the
Federal courts for the purpose of enforcement of the
responsibilities as such an official.
``(iv) Approval by states._In cases in which a unit of
general local government carries out the responsibilities
described in clause (i), the Secretary may permit the State
to perform those actions of the Secretary described in
clause (ii) and the performance of such actions by the
State, where permitted by the Secretary, shall be deemed to
satisfy the Secretary's responsibilities referred to in the
second sentence of clause (ii).
``(B) Lead-based paint poisoning prevention._In carrying
out the requirements of section 302 of the Lead-Based Paint
Poisoning Prevention Act, the Secretary may provide by
regulation for the assumption of all or part of the Secretary's
duties under such Act by qualified housing finance agencies,
for purposes of this section.
``(C) Certification of subsidy layering compliance._The
requirements of section 102(d) of the Department of Housing and
Urban Development Reform Act of 1989 may be satisfied in
connection with a commitment to insure a mortgage under this
subsection by a certification by a housing credit agency
(including an entity established by a State that provides
mortgage insurance) to the Secretary that the combination of
assistance within the jurisdiction of the Secretary and other
government assistance provided in connection with a property
for which a mortgage is to be insured shall not be any greater
than is necessary to provide affordable housing.
``(10) Definitions._For purposes of this subsection, the
following definitions shall apply:
``(A) Mortgage._The term `mortgage' means a first mortgage
on real estate that is_
``(i) owned in fee simple; or
``(ii) subject to a leasehold interest that_
``(I) has a term of not less than 99 years and is
renewable; or
``(II) has a remaining term that extends beyond the
maturity of the mortgage for a period of not less than
10 years.
``(B) First mortgage._The term `first mortgage' means a
single first lien given to secure advances on, or the unpaid
purchase price of, real estate, under the laws of the State in
which the real estate is located, together with the credit
instrument, if any, secured thereby. Any other financing
permitted on property insured under this section must be
expressly subordinate to the insured mortgage.
``(C) Unit of general local government; state._The terms
`unit of general local government' and `State' have the same
meanings as in section 102(a) of the Housing and Community
Development Act of 1974.''.
(c) Definitions._Section 544 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1707 note) is amended_
(1) by striking paragraph (1) and inserting the following new
paragraph:
``(1) The term `multifamily housing' means housing
accommodations on the mortgaged property that are designed
principally for residential use, conform to standards satisfactory
to the Secretary, and consist of not less than 5 rental units on 1
site. These units may be detached, semidetached, row house, or
multifamily structures.''; and
(2) by adding at the end the following new paragraph:
``(5) The term `qualified participating entity' means an entity
approved by the Secretary for participation in the pilot program
under this subsection, which may include_
``(A) the Federal National Mortgage Association;
``(B) the Federal Home Loan Mortgage Corporation;
``(C) State housing finance and mortgage insurance
agencies; and
``(D) the Federal Housing Finance Board.''.

198f5d635137f9fd0b1b4e4db02c192222ae20849a2b4e8b762ef667d7c65d8e

Section 911 of the Housing and Community Development Act of 1992
(42 U.S.C. 3545 note) is amended_
(1) by striking subsection (a) and inserting the following new
subsection:
``(a) Certification of Subsidy Layering Compliance._The
requirements of section 102(d) of the Department of Housing and Urban
Development Reform Act of 1989 may be satisfied in connection with a
project receiving assistance under a program that is within the
jurisdiction of the Department of Housing and Urban Development and
under section 42 of the Internal Revenue Code of 1986 by a
certification by a housing credit agency to the Secretary, submitted in
accordance with guidelines established by the Secretary, that the
combination of assistance within the jurisdiction of the Secretary and
other government assistance provided in connection with a property for
which assistance is to be provided within the jurisdiction of the
Department of Housing and Urban Development and under section 42 of the
Internal Revenue Code of 1986 shall not be any greater than is
necessary to provide affordable housing.''; and
(2) by striking subsection (c) and inserting the following new
subsection:
``(c) Revocation by Secretary._If the Secretary determines that a
housing credit agency has failed to comply with the guidelines
established under subsection (a), the Secretary_
``(1) may inform the housing credit agency that the agency may
no longer submit certification of subsidy layering compliance under
this section; and
``(2) shall carry out section 102(d) of the Department of
Housing and Urban Development Reform Act of 1989 relating to
affected projects allocated a low-income housing tax credit
pursuant to section 42 of the Internal Revenue Code of 1986.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

4e897164f418e9daef8de37df9f2a80b44ae67e90f78ad6bcf28867d892a33ae

Housing and Community Development Act of 1993 — S. 1299

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