101st CONGRESS
2d Session
S. 566
AMENDMENTS
S 566 EAH
In the House of Representatives, U. S.,
August 1, 1990.
Resolved, That the bill from the Senate (S. 566) entitled `An Act to
authorize a new Housing Opportunities Partnerships program to support
State and local strategies for achieving more affordable housing; to
increase homeownership; and for other purposes', do pass with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:

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(a) SHORT TITLE- This Act may be cited as the `Housing and Community
Development Act of 1990'.
(b) TABLE OF CONTENTS-

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Subtitle A--National Housing Trust Demonstration

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Subtitle B--Other Homeownership Demonstration Programs
Part 1--HOMEOWNERSHIP MADE EASIER DEMONSTRATION

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TITLE I

-NATIONAL HOUSING TRUST DEMONSTRATION

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Part 2--SECOND MORTGAGES FOR FIRST-TIME HOMEBUYERS

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mortgage assistance for first-time homebuyers.

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Subtitle A--HOPE for Public and Indian Housing Homeownership

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TITLE III

-HOPE PROGRAMS

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Subtitle B--HOPE for Homeownership of Multifamily Units

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Subtitle C--HOPE for Homeownership of Single Family Homes

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Subtitle A--Housing Education and Organizational Support Grants for Community
Based Housing Projects

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TITLE IV

-COMMUNITY HOUSING PARTNERSHIP

Subtitle B--Community Housing Partnership Grants

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Subtitle A--Programs Under the United States Housing Act of 1937

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funding and other miscellaneous amendments.

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TITLE V

-HOUSING ASSISTANCE

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Subtitle B--Other Housing Assistance Programs

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TITLE VI

-RURAL HOUSING

MARKET, AND MISCELLANEOUS PROGRAMS
Subtitle A--Community and Neighborhood Development and Preservation

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TITLE VII

-COMMUNITY DEVELOPMENT, MORTGAGE INSURANCE AND SECONDARY MORTGAGE

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community development and public facility funds.

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Subtitle B--Mortgage Insurance and Secondary Mortgage Market Programs

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Subtitle C--Regulatory and Other Programs

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Subtitle A--Emergency Low Income Housing Preservation

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Subtitle B--Other Homeless Prevention Programs

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TITLE VIII

-HOMELESS PREVENTION

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limiting liability regarding food donations for homeless shelters and
providers.

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as overnight shelters for homeless individuals.
Subtitle C--Homelessness Prevention for Individuals with AIDS

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Part 1--GRANTS FOR AIDS HOUSING INFORMATION AND COORDINATION SERVICES

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Part 2--AIDS SHORT-TERM SUPPORTED HOUSING AND SERVICES DEMONSTRATION

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Part 3--PERMANENT AND TRANSITIONAL HOUSING AND SERVICES

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(a) CONGRESSIONAL FINDINGS- The Congress finds that--
(1) in accordance with the Congressional Budget Act of 1974, the House of
Representatives approved a concurrent resolution on the budget for fiscal
year 1991 (H. Con Res. 310, 101st Congress), establishing aggregate budget
priorities for the Congress for such fiscal year;
(2) the House report on such resolution calls for $3,300,000,000 of
additional budget authority in fiscal year 1991 for new housing programs
in excess of the baseline amount established by the Committee on the Budget
of the House of Representatives and approved by the House of Representatives;
(3) the Congressional Budget Office has estimated the programmatic baseline
for aggregate budget authority for fiscal year 1991 provided under this
Act to be $23,869,015,000; and
(4) therefore, the appropriate aggregate authorization of budget authority
for housing programs provided under this Act (as reflected in the House
report on H. Con. Res. 310) is $27,169,015,000.
(b) COMPLIANCE WITH BUDGET RESOLUTION- To the extent that the aggregate
amount of budget authority for programs that is authorized by this Act
and the amendments made by this Act exceeds $27,169,015,000 for fiscal
year 1991, the amount of budget authority authorized by this Act and the
amendments made by this Act for each program shall be reduced on a pro
rata basis by the amount necessary to provide that such aggregate amount
of budget authority is $27,169,015,000.
(c) DEFINITIONS- For purposes of this section, the terms `budget authority'
and `concurrent resolution on the budget' have the meaning given such
terms in section 3 of the Congressional Budget Act of 1974 (2 U.S.C. 622).
Subtitle A--National Housing Trust Demonstration

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This subtitle may be cited as the `National Housing Trust Act'.

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(a) ESTABLISHMENT- There is established the National Housing Trust, which
shall be in the Department of Housing and Urban Development and shall
provide assistance to first-time homebuyers in accordance with this subtitle.
(b) BOARD OF DIRECTORS- The Trust shall be governed by a Board of Directors,
which shall be composed of--
(1) the Secretary of Housing and Urban Development, who shall be the
chairperson of the Board;
(2) the Secretary of the Treasury;
(3) the chairperson of the Board of Directors of the Federal Deposit
Insurance Corporation;
(4) the chairperson of the Federal Housing Finance Board;
(5) the chairperson of the Board of Directors of the Federal National
Mortgage Association;
(6) the chairperson of the Board of Directors of the Federal Home Loan
Mortgage Corporation; and
(7) 1 individual representing consumer interests, who shall be appointed
by the President of the United States, by and with the advice and consent
of the Senate.
(c) POWERS OF TRUST- The Trust shall have the same powers as the powers
given the Government National Mortgage Association in section 309(a) of
the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(a)).
(d) TRAVEL AND PER DIEM- Members of the Board of Directors shall receive
no additional compensation by reason of service on the Board, but shall
be allowed travel expenses, including per diem in lieu of subsistence,
as provided for employees of the Federal Government or in the same manner
as persons employed intermittently in the Government service are allowed
under section 5703 of title 5, United States Code, as appropriate.
(e) DIRECTOR AND STAFF-
(1) DIRECTOR- The Board of Directors may appoint an executive director of
the Trust and fix the compensation of the executive director, which shall
be paid from amounts in the National Housing Trust Fund.
(2) STAFF- Subject to such rules as the Board of Directors may prescribe,
the Trust may appoint and hire such staff and provide for offices as may be
necessary to carry out its duties. The Trust may fix the compensation of the
staff, which shall be paid from amounts in the National Housing Trust Fund.

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(a) IN GENERAL- The Trust shall provide assistance payments for first-time
homebuyers (including homebuyers buying shares in limited equity
cooperatives) in the following manners:
(1) INTEREST RATE BUYDOWNS- Assistance payments so that the rate of interest
payable on the mortgages by the homebuyers does not exceed 6 percent.
(2) DOWNPAYMENT ASSISTANCE- Assistance payments to provide amounts for
downpayments (including closing costs and other costs payable at the time
of closing) on mortgages for such homebuyers.
(b) ELIGIBILITY REQUIREMENTS- Assistance payments under this subtitle may be
made only to homebuyers and for mortgages meeting the following requirements:
(1) FIRST-TIME HOMEBUYER- The homebuyer is an individual who--
(A) (and whose spouse) has had no ownership in a principal residence
during the 3-year period ending on the date of purchase of the property
with respect to which assistance payments are made under this subtitle;
(B) is a displaced homemaker who, except for owning a home with his or her
spouse or residing in a home owned by the spouse, meets the requirements
of subparagraph (A); or
(C) is a single parent who, except for owning a home with his or her
spouse or residing in a home owned by the spouse while married, meets the
requirements of subparagraph (A).
(2) MAXIMUM INCOME OF HOMEBUYER- The aggregate annual income of the
homebuyer and the members of the family of the homebuyer residing with the
homebuyer, for the 12-month period preceding the date of the application
of the homebuyer for assistance under this subtitle, does not exceed 115
percent of the median income for a family of 4 persons in the applicable
metropolitan statistical area (or such other area that the Board of Directors
determines for areas outside of metropolitan statistical areas). The Board
of Directors shall provide for certification of such income for purposes of
initial eligibility for assistance payments under this subtitle and shall
provide for recertification of homebuyers (and families of homebuyers)
so assisted not less than every 2 years thereafter.
(3) CERTIFICATION- The homebuyer (and spouse, where applicable) shall
certify that the homebuyer has made a good faith effort to obtain a market
rate mortgage and has been denied because the annual income of the homebuyer
and the members of the family of the homebuyer residing with the homebuyer
is insufficient.
(4) PRINCIPAL RESIDENCE- The property securing the mortgage is a
single-family residence or unit in a cooperative and is the principal
residence of the homebuyer.
(5) MAXIMUM MORTGAGE AMOUNT- The principal obligation of the mortgage does
not exceed the principal amount that could be insured with respect to the
property under the National Housing Act.
(6) MAXIMUM INTEREST RATE- The interest payable on the mortgage is
established at a fixed rate that does not exceed a maximum rate of interest
established by the Trust taking into consideration prevailing interest
rates on similar mortgages.
(7) RESPONSIBLE MORTGAGEE- The mortgage has been made to, and is held by,
a mortgagee that is federally insured or that is otherwise approved by
the Trust as responsible and able to service the mortgage properly.
(8) INSURED OR CONVENTIONAL MORTGAGE- The mortgage--
(A) is insured under the National Housing Act; or
(B) is covered by private mortgage insurance and is for a principal amount
that does not exceed 90 percent of the appraised value of the property.
(9) MINIMUM DOWNPAYMENT- For a first-time homebuyer to receive downpayment
assistance under subsection (a)(2), the homebuyer shall have paid not
less than 1 percent of the cost of acquisition of the property (excluding
the mortgage insurance premium paid at the time the mortgage is insured),
as such cost is estimated by the Board of Directors.
(c) TERMS OF ASSISTANCE-
(1) SECURITY- Assistance payments under this subtitle shall be secured
by a lien on the property involved. The lien shall be subordinate to all
mortgages existing on the property on the date on which the first assistance
payment is made.
(2) REPAYMENT UPON SALE- Assistance payments under this subtitle shall
be repayable from the net proceeds of the sale, without interest, upon
the sale of the property for which the assistance payments are made. If
the sale results in no net proceeds or the net proceeds are insufficient
to repay the amount of the assistance payments in full, the Board of
Directors shall release the lien to the extent that the debt secured by
the lien remains unpaid.
(3) REPAYMENT UPON INCREASED INCOME- If the aggregate annual income of
the homebuyer (and family of the homebuyer) assisted under this subtitle
exceeds 115 percent of the median income for a family of 4 persons in
the applicable metropolitan statistical area (or such other area that the
Board of Directors determines for areas outside of metropolitan statistical
areas) for any 2-year period after such assistance is provided, the Board
of Directors may provide for the repayment, on a monthly basis, of all or
a portion of such assistance payments, based on the amount of assistance
provided and the income of the homebuyer (and family of the homebuyer).
(4) REPAYMENT IF PROPERTY CEASES TO BE PRINCIPAL RESIDENCE- If the property
for which assistance payments are made ceases to be the principal residence
of the first-time homebuyer (or the family of the homebuyer), the Board
of Directors may provide for the repayment of all or a portion of the
assistance payments.
(5) AVAILABLE ASSISTANCE- The Trust may make assistance payments under
paragraphs (1) and (2) of subsection (a) with respect to a single mortgage
of an eligible homebuyer.
(d) ALLOCATION FORMULA- Amounts available in any fiscal year for assistance
under this subtitle shall be allocated for homebuyers in each State on the
basis of the need of eligible first-time homebuyers in each State for such
assistance in comparison with the need of eligible first-time homebuyers
for such assistance among all States.

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(a) ESTABLISHMENT- There is established in the Treasury of the United
States a revolving fund, to be known as the National Housing Trust Fund.
(b) ASSETS- The Fund shall consist of--
(1) any amount approved in appropriation Acts under section 108 for purposes
of carrying out this subtitle;
(2) any amount received by the Trust as repayment for payments made under
this subtitle; and
(3) any amount received by the Trust under subsection (d).
(c) USE OF AMOUNTS- The Fund shall, to the extent approved in appropriations
Acts, be available to the Trust for purposes of carrying out this subtitle.
(d) INVESTMENT OF EXCESS AMOUNTS- Any amounts in the Fund determined by the
Trust to be in excess of the amounts currently required to carry out the
provisions of this subtitle shall be invested by the Trust in obligations
of, or obligations guaranteed as to both principal and interest by, the
United States or any agency of the United States.

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For purposes of this subtitle:
(1) BOARD OF DIRECTORS- The term `Board of Directors' or `Board' means
the Board of Directors of the National Housing Trust under section 102(b).
(2) DISPLACED HOMEMAKER- The term `displaced homemaker' means an individual
who--
(A) is an adult;
(B) has not worked full time in the labor force for a number of years,
but has during such years, worked primarily without remuneration to care
for the home and family;
(C)(i) has been dependent on public assistance or on the income of a spouse
but is no longer supported by such assistance or income; or
(ii) is a parent whose youngest dependent child will become ineligible
to receive assistance under the Aid to Families With Dependent Children
Program within 2 years after submission by the individual of an application
for assistance under this subtitle; and
(D) is unemployed or underemployed and is experiencing difficulty in
obtaining or upgrading employment.
(3) FUND- The term `Fund' means the National Housing Trust Fund established
in section 104.
(4) SINGLE PARENT- The term `single parent' means an individual who--
(A) is unmarried or legally separated from a spouse; and
(B)(i) has 1 or more minor children for whom the individual has custody
or joint custody; or
(ii) is pregnant.
(5) STATE- The term `State' means the States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa,
the Trust Territory of the Pacific Islands, and any other territory or
possession of the United States.
(6) TRUST- The term `Trust' means the National Housing Trust established
in section 102.

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The Board of Directors shall issue any regulations necessary to carry out
this subtitle.

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The Board of Directors shall submit to the Congress, not later than the
expiration of the 90-day period beginning on the date of the termination
of the Trust under section 110, a report containing a description of the
activities of the Trust and an analysis of the effectiveness of the Trust
in assisting first-time homebuyers.

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There are authorized to be appropriated to carry out this subtitle
$500,000,000 for fiscal year 1991 and such sums as may be necessary for
each of fiscal years 1992 and 1993. Any amount appropriated under this
section shall be deposited in the Fund and remain available until expended,
subject to the provisions of section 109.

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(a) AUTHORITY OF SECRETARY- Upon the termination of the Trust as provided in
section 110, the Secretary of Housing and Urban Development shall exercise
any authority of the Board of Directors and the Trust in accordance with
the provisions of this subtitle as may be necessary to provide for the
conclusion of the outstanding affairs of the Trust.
(b) APPLICABILITY OF TRUST PROVISIONS- Any assistance under this subtitle
shall, after termination of the Trust, be subject to the provisions of
this subtitle that would have applied to such assistance if the termination
had not occurred.
(c) CERTIFICATION OF FUND TO TREASURY- Upon a determination by the Secretary
of Housing and Urban Development that the National Housing Trust Fund is
no longer necessary, the Secretary shall certify any amounts remaining in
the Fund to the Secretary of the Treasury and the Secretary of the Treasury
shall cover into the general fund of the Treasury as miscellaneous receipts
any amounts remaining in the Fund.

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The Trust shall terminate on September 30, 1993.
Subtitle B--Other Homeownership Demonstration Programs
PART 1--HOMEOWNERSHIP MADE EASIER DEMONSTRATION

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For purposes of this part--
(1) The term `buyer contribution' means the sum of the total amount of
funds deposited by an eligible buyer in a HOME savings certificate account
in any calendar year and any interest earned under section 125(b) during
the year on such amount.
(2) The term `depository institution' means a financial institution in
the business of accepting time deposits insured by the Federal Deposit
Insurance Corporation or the National Credit Union Adminis-tration.
(3) The term `displaced homemaker' means an individual who--
(A) is an adult;
(B) has not worked full-time full-year in the labor force for a number of
years, but has during such years worked primarily without remuneration to
care for the home and family;
(C)(i) has been dependent on public assistance or on the income of a spouse
but is no longer supported by such assistance or income; or
(ii) is a parent whose youngest dependent child will become ineligible
to receive assistance under the Aid to Families With Dependent Children
Program within 2 years after submission by the individual of an application
for assistance under this part; and
(D) is unemployed or underemployed and is experiencing difficulty in
obtaining or upgrading employment.
(4)(A) The term `eligible buyer' means a purchaser of a single-family
residence--
(i) who has not, individually or jointly with 1 or more other persons,
had any present ownership interest in a principal or secondary residence
at any time during--
(I) the 3-year period ending on the date of the establishment of a HOME
savings certificate account by the eligible buyer; and
(II) during the period beginning on the date of the establishment of such
account and ending at the time of the use of amounts in the account for
the purchase of a principal residence under this part; and
(ii) whose qualifying income did not exceed 120 percent of the State median
gross income during the period beginning on the 1st day of the calendar
year preceding the year in which the buyer established a certificate
account and ending on the date the purchase by the buyer of a residence
with assistance under this part.
(B) Such term may not be construed to exclude from consideration as an
eligible buyer--
(i) any individual who is a displaced homemaker, on the basis that the
individual, while a homemaker, owned a home with his or her spouse or
resided in a home owned by the spouse; and
(ii) any individual who is a single parent, on the basis that the individual,
while married, owned a home with his or her spouse or resided in a home
owned by the spouse.
(5) The terms `HOME savings certificate account' and `certificate account'
mean a time deposit account established under this part with a depository
institution by an eligible buyer, into which buyer contributions are
deposited.
(6) The term `matching contribution certificate' means a nontransferable
certificate issued by the Secretary of Housing and Urban Development under
this part that represents, for any year, the total amount of the funds to
be made available to an eligible buyer by the Secretary for purchase of
a residence under this part.
(7) The term `qualifying income' means the annual family income of an
eligible buyer, with adjustments for family size, and areas of high or
low housing costs (in relation to the median income for the area).
(8) The term `Secretary' means the Secretary of Housing and Urban
Development.
(9) The term `single parent' means an individual who--
(A) is unmarried or legally separated from a spouse; and
(B)(i) has 1 or more minor children for whom the individual has custody
or joint custody; or
(ii) is pregnant.
(10) The term `State median gross income' means the annual median gross
income, as determined by the Secretary, for the State in which an eligible
buyer resides, with adjustments for family size, and States with high or
low housing costs (in relation to the median gross income in the State).

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(a) AUTHORITY- To provide funds to eligible buyers for use in connection
with the purchase of principal residences, the Secretary may issue matching
contribution certificates under this part to eligible buyers that have
established a HOME savings certificate account and, subject to subsection
(e) and amounts provided in appropriations Acts, may make commitments to
issue matching contribution certificates before the date of their issuance.
(b) ISSUANCE OF MATCHING CONTRIBUTION CERTIFICATES- A matching contribution
certificate shall be issued annually for each year for which an eligible
buyer may receive such certificates under this part. Matching contribution
certificates may be redeemed under section 124 only in connection with
the purchase of a principal residence by an eligible buyer under this part.
(c) AMOUNT OF CONTRIBUTIONS-
(1) MATCHING CONTRIBUTION CERTIFICATE- Subject to the limitations of this
section and section 124, the amount of a matching contribution certificate
shall be a multiple of the buyer contribution to the certificate account
as determined by the ratio of the qualifying income of the eligible buyer
to the State median gross income, expressed as a percentage, in accordance
with the following table:
Qualifying income
--Government matching
expressed as
--amount per $1 buyer
percentage of State
--contribution to
median gross income
--certificate account
50 percent or less
--$4.00
51-80 percent
--$3.00
81-100 percent
--$2.00
101-120 percent
--$1.00
Over 120 percent
--$0.00.
(2) MAXIMUM BUYER CONTRIBUTION MATCHED- The amount of a buyer contribution
eligible for Government matching amounts (in the form of a matching
contribution certificate) under paragraph (1) shall not exceed 5 percent
of the qualifying income of the eligible buyer. Notwithstanding the
preceding sentence, during the 12-month period beginning on the date that
regulations implementing this part take effect the eligible portion of a
buyer contribution shall not exceed 15 percent of the qualifying income,
and during the 12-month period beginning on the day after the expiration
of the initial 12-month period under this paragraph the eligible portion
of a buyer contribution shall not exceed 10 percent of the qualifying income.
(3) TOTAL MAXIMUM MATCHING CONTRIBUTION- Notwithstanding paragraph (2),
the sum of the amounts of the matching contribution certificates issued
under this part for any eligible buyer may not exceed the amount equal to
40 percent of the average State median income for the years for which such
certificates are issued.
(d) INCOME INELIGIBILITY- If, for any year during which an eligible
buyer establishes a HOME savings certificate account or thereafter,
the qualifying income of an eligible buyer exceeds 120 percent of the
State median gross income, the eligible buyer may not receive a matching
contribution certificate for such year. Loss of eligibility for matching
contribution certificates under this paragraph shall not affect the ability
of any eligible buyer to redeem any matching contribution certificates
properly issued to the buyer, subject to the provisions of this part.
(e) COMMITMENTS-
(1) IN GENERAL- The Secretary shall provide for entering into commitments
to issue matching contribution certificates upon such terms as the
Secretary shall by regulation prescribe, subject to the requirements of
this subsection.
(2) RESERVATION FOR LOW-INCOME ELIGIBLE BUYERS- Subject only to the absence
of eligible buyers under this subsection, in each fiscal year the Secretary
shall reserve 20 percent of the amounts provided in appropriation Acts for
the year for commitments to issue matching contribution certificates for
eligible buyers whose qualifying income does not exceed 80 percent of the
State median gross income. The Secretary shall make commitments to issue
certificates with amounts reserved under this paragraph for the 9-month
period beginning on the first day of each fiscal year.
(3) REMAINING AMOUNTS- Subject to the eligibility under this part, for any
amounts not reserved under paragraph (2), and for any amounts not committed
under paragraph (2) after the expiration of the 9-month period under such
paragraph, the Secretary shall enter into commitments to issue matching
contribution certificates without regard to the income limitations under
paragraph (2).

c956cc4278ff3c3fafb22d0c41b8a8729310ddcc2b8b79d957faeb6589ade548

(a) USE- Matching contribution certificates may be redeemed only by or
on behalf of an eligible buyer and only to provide for the payment of the
downpayment, closing costs, and any other expenses due at the time of closing
and incurred in connection with the purchase of a principal residence.
(b) LOAN-TO-VALUE RATIO- Amounts received from the redemption of any
matching contribution certificates may be expended only in connection with
the purchase of a residence for which the sum of the principal obligation
incurred under the mortgage (including such initial service charges,
appraisal, inspection, and other fees, as the Secretary shall determine),
the amounts received from redeemed certificates, and the amount secured
by any subordinated lien, does not exceed 95 percent of the lesser of (A)
the purchase price of the residence, or (B) the appraised value of the
residence at the time of closing, with respect to such mortgage.
(c) REQUIRED USE OF CONTRIBUTIONS OF BUYER- Amounts from the redemption of
matching contribution certificates may only be provided under section 124
and used under this section if the eligible buyer uses, for the purchase of
a principal residence, an amount from the HOME savings certificate account
equal to the buyer contributions necessary (in the year for which each
certificate was issued) for issuance of the certificates in the amount in
which the certificates were issued.

47a9744b1dd3cf707649b76eea1a47490220baa51c3d6ec75558d371aecb32e8

(a) PERIOD OF REDEMPTION- A matching contribution certificate shall be
eligible for redemption at any time before the expiration of the 7-year
period beginning on the date on which the eligible buyer established the
certificate account for which such certificate was issued. Any certificate
issued to the eligible buyer that is not redeemed within the period shall
be null and void.
(b) LIQUIDATION- To redeem a matching contribution certificate the eligible
buyer to whom such certificate was issued shall, at the time of the
purchase of a principal residence by or on behalf of an eligible buyer,
request liquidation of the certificate in the form and manner that the
Secretary shall by regulation determine.
(c) REDUCTION- The amount provided to an eligible buyer for a matching
contribution certificate upon redemption of the certificate shall be
reduced--
(1) if the certificate is redeemed within the 12-month period beginning
on the date of the establishment of the certificate account, to 25 percent
of the amount of the certificate as issued under section 122; and
(2) if the certificate is redeemed after the expiration of the 12-month
period beginning on the date of the establishment of the certificate account
but before the expiration of the 3-year period beginning on such date,
to 50 percent of the amount of the certificate as issued under section 122.

ce3c7a67780aa2e4ab134cbc58627caafeb43ace5d25ddfd86914adee8c64a75

(a) REPORTING OF TRANSACTIONS- The Secretary shall by regulation require
depository institutions holding HOME savings certificate accounts to
provide to the Secretary the following information:
(1) ESTABLISHMENT- Notice of the establishment of certificate accounts by
eligible buyers.
(2) TRANSACTIONS- Periodic reports of transactions regarding certificate
accounts and balances in certificate accounts.
(b) INTEREST- A HOME savings certificate account established under this
part shall provide for the payment of interest, in an amount determined by
the depository institution in which the account is established, on amounts
deposited by an eligible buyer in the certificate account.
(c) RESTRICTION OF WITHDRAWALS- If an eligible buyer makes any withdrawal
from a HOME savings certificate account other than for obtaining the
amounts in the account for use in the purchase of a principal residence,
any matching contribution certificates issued in connection with the
certificate account shall be null and void. The Secretary may establish
exceptions to the restriction under this subsection to the extent that
the exceptions are consistent with the purposes of this part.

7f255e2bd8b60fde4bdbcf07b2a2d1f532ea9aeb870ca675d958f4e7ee243371

(a) REQUIREMENT OF REPAYMENT- An eligible buyer who has redeemed or caused
to be redeemed any matching contribution certificate under section 124
shall repay the Secretary under this section for the amount of certificates
redeemed.
(b) SECURITY- At the time of redemption of any matching contribution
certificate, the eligible buyer shall execute in favor of and cause to be
delivered to the Secretary or his designee a promissory note and mortgage,
deed of trust, or other appropriate instrument by which an interest in real
property is rendered subject to a lien under the applicable laws of the
jurisdiction in which the residence to be purchased is located, in an amount
equal to the value of certificates redeemed. The lien of such mortgage,
deed of trust, or other instrument shall be subordinate to the lien of the
first mortgage that secures advances on, or the unpaid purchase price of,
the residence, but shall be superior to all other liens and encumbrances,
except as the Secretary may provide by regulation.
(c) TERM- An eligible buyer shall repay the Secretary under this section
by payments of substantially equal monthly installments of principal and
interest during a term equal to the term of the first mortgage secured by the
residence purchased using the proceeds of matching contribution certificates.
(d) INTEREST- The Secretary may charge interest on amounts to be repaid
under this section at a rate of--
(1) 3 percent per annum, in the case of an eligible buyer whose qualifying
income is equal to or less than 80 percent of State median gross income at
the time the eligible buyer redeems the matching contribution certificate;
and
(2) 9 percent per annum, in the case of an eligible buyer whose qualifying
income exceeds 80 percent of State median gross income at the time the
eligible buyer redeems the certificate.
(e) SALE OF RESIDENCE- If the eligible buyer sells or otherwise disposes
of the residence purchased with any funds from matching contributions
certificates redeemed under this part before full repayment under this
section is made, any amounts that have not been repaid shall become
immediately due and payable.
(f) SERVICING OF REPAYMENTS- The Secretary may provide for servicing of
repayments under this section as the Secretary considers appropriate,
including servicing by private loan servicers.

afbb4b2a5d1b7742e9c7da9a1a298d0c8fdf0227d353bf70658fd547daef41b1

(a) IN GENERAL- The Secretary may, without limitation, sell any mortgages
or interests securing repayment of amounts advanced upon redemption of
matching contribution certificates and the servicing relating to such
mortgages and interests.
(b) CONSULTATION AND AGREEMENTS- With respect to the purchase of any
mortgages or interests securing repayment of amounts advanced upon redemption
of matching contribution certificates, the Secretary shall consult with,
and may enter into agreements with, any agencies and entities involved in
the secondary mortgage market.

b5c8984c648819d30aaf9ffa363a6b2ebf17100e6e7598eaae2ad9524ccafaa5

In carrying out the Homeownership Made Easier Demonstration program under
this part, the Secretary shall ensure, to the extent sufficient amounts
are provided in appropriations Acts under section 131, that the program is
carried out in each region relating to a regional office of the Department
of Housing and Urban Development.

6ffffb5674094be5b291a0b74f439a717098fa553382e6294c0ccb246a860f78

(a) ANNUAL REPORT- For each year for which the Secretary provides matching
contributions certificates under this part, the Secretary shall include
in the annual report under section 8 of the Department of Housing and
Urban Development Act (42 U.S.C. 3536) information regarding the operation
of the Homeownership Made Easier demonstration program under this part,
including the extent of participation in the program and the amount of
assistance provided under the program.
(b) FINAL REPORT- The Secretary shall submit to the Congress, not later
than the expiration of the 90-day period beginning on the termination date
in section 132, a report summarizing the activities of the demonstration
program under this part and analyzing the effectiveness of the program in
promoting and facilitating homeownership.

0b171e9c6777ebf36cf5eaec0380ea7776ade5f2c0aa7b98cca77c9fe7280391

The Secretary may issue any regulations necessary to carry out this
part. The Secretary shall issue regulations to implement this part before
the expiration of the 180-day period beginning on the date of the enactment
of the Housing and Community Development Act of 1990.

1d1e7e502ff0a9890675f7619ab9b657fead7eaa02747ab5c7846cac9661d4b9

AUTHORIZATION OF APPROPRIATIONS.
(a) COMMITMENTS- The authority of the Secretary to enter into commitments to
issue matching contribution certificates under this part shall be effective
for any fiscal year to such extent or in such amounts as are or have been
provided in appropriation Acts for such fiscal year.
(b) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated
to carry out this part $20,000,000 for fiscal year 1991.

80a14ad89d339681db493ea47a355f761bae023c42088b2e43d00ea05bf30db2

The Secretary may not issue any matching contribution certificates to any
eligible buyer who establishes a HOME savings certificate account after
September 30, 1991.
PART 2--SECOND MORTGAGES FOR FIRST-TIME HOMEBUYERS

59ec1808f95e68f54035383f0bd74f61bb6dd3d40cf081768aeed416b73f6506

MORTGAGE ASSISTANCE FOR FIRST-TIME HOMEBUYERS.
(a) AUTHORITY- The Secretary of Housing and Urban Development (in this
part referred to as the `Secretary') may make grants to units of general
local government and nonprofit housing organizations for such entities
to provide loans (secured by second mortgages) with deferred payment of
interest and principal to first-time homebuyers.
(b) GRANT REQUIREMENTS- To be eligible to receive a grant under this section,
a unit of general local government or nonprofit housing organization shall
meet the following requirements:
(1) HOMEOWNERSHIP COUNSELING- The recipient shall provide for homeownership
counseling to first-time homebuyers assisted, which shall include--
(A) counseling before and after purchase of the property;
(B) assisting first-time homebuyers in identifying the most suitable and
affordable properties;
(C) providing homebuyers with financial management assistance;
(D) assisting homebuyers in understanding mortgage transactions and home
sales contracts; and
(E) assisting homebuyers with eliminating any credit problems that may
prevent the homebuyers from purchasing a property.
(2) FINANCIAL RESPONSIBILITY- The recipient meets any requirements for
financial responsibility as the Secretary may establish.
(c) APPLICATION AND SELECTION PROCEDURES-
(1) ESTABLISHMENT- The Secretary shall provide for application by, and
selection of, units of general local government and nonprofit housing
organizations to receive grants under this section.
(2) SELECTION CRITERIA- The Secretary shall select recipients for grants
under this section based on the selection criteria that the Secretary
shall establish, which shall include the following:
(A) The degree of commitment of the grant recipient to providing affordable
housing.
(B) The extent to which the grant recipient has secured other public and
private funds for assisting first-time homebuyers in obtaining affordable
housing.
(C) The anticipated effectiveness of the homeownership counseling program
of the grant recipient required under subsection (b)(1).
(d) SECOND MORTGAGE ELIGIBILITY REQUIREMENTS- Deferred payment loans
secured by second mortgages may be provided with amounts received from a
grant under this section only under the following conditions:
(1) FIRST-TIME HOMEBUYER- The homebuyer assisted is a first-time homebuyer.
(2) PRINCIPAL RESIDENCE- The property secured by the second mortgage is
a single-family residence and is the principal residence of the homebuyer.
(3) MAXIMUM MORTGAGE AMOUNT- The principal obligation of the deferred
payment loan secured by the second mortgage does not exceed 30 percent of
the acquisition price of the residence to the homebuyer.
(4) PAYMENT DEFERRAL- The payment of any principal and interest accrued
on the loan under this section shall be deferred for not less than the
5-year period beginning on the date of the acquisition of the residence
by the homebuyer.
(5) INTEREST RATE- The interest rate payable on the deferred payment loan
secured by the second mortgage shall be established by the grant recipient,
subject to approval by the Secretary, and reviewed by the Secretary not
less than once every 5 years, at not less than 4 percent annually and not
more than the prevailing market rate, and shall be based on the income,
household size, and other relevant characteristics of the family of the
homebuyer, as the Secretary determines are appropriate.
(6) TERM- The deferred payment loan secured by the second mortgage shall
be repayable over the 15-year period beginning upon the expiration of the
payment deferral period under paragraph (4).
(7) MAXIMUM INCOME OF HOMEBUYER- The aggregate annual income of the homebuyer
and members of the family of the homebuyer residing with the homebuyer,
for the 12-month period preceding the date of the application for a loan
under this section, does not exceed 80 percent of the median income for
a family of 4 persons in the applicable metropolitan statistical area
(or such other area that the Secretary determines for areas outside of
metropolitan statistical areas).
(8) FIRST MORTGAGE- The principal obligation of the first mortgage on the
residence securing the deferred payment loan does not exceed the principal
amount that could be insured with respect to the property under the National
Housing Act.
(e) SECURITY- A deferred payment loan assisted with amounts provided under
a grant under this section shall be secured by a lien on the property
involved, which shall be subordinate to the first mortgage on the property.
(f) DEFINITIONS- For purposes of this part:
(1) FIRST-TIME HOMEBUYER- The term `first-time homebuyer' means a homebuyer
who meets the requirements under section 103(b)(1) of this title.
(2) UNIT OF GENERAL LOCAL GOVERNMENT- The term `unit of general local
government' means any city, town, township, county, parish, village,
or other general purpose political subdivision of a State.
(g) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated
to carry out this part $20,000,000 for fiscal year 1991.
(h) REGULATIONS- The Secretary may issue any regulations necessary to
carry out this part.

71c0835b074faea2a8d8f10ed39427de0e3e97f6e7696f8995dea4f231446db5

(a) FINDINGS- The Congress finds that--
(1) the supply of affordable rental housing is diminishing;
(2) the Tax Reform Act of 1986 removed major tax incentives for the
production of affordable rental housing;
(3) there should be established a direct assistance program that is more
cost-effective and targeted than tax incentives; and
(4) an affordable rental housing production program should be targeted to
projects meeting demonstrated needs, including the needs for large family
units, congregate facilities for frail elderly or handicapped persons, and
additional units that are available to very low-income families receiving
rental assistance payments from Federal, State, and local governments.
(b) PURPOSE- It is the purpose of this title to authorize the Secretary
of Housing and Urban Development to make repayable advances to the public
and private sectors to assist in the provision of needed and affordable
rental housing.

783d3ff170fd150031a6f4dd6cfae3a3c89241a800524a58532c0fa59a9ee5aa

TITLE II

-RENTAL HOUSING PRODUCTION

(a) IN GENERAL- The Secretary may provide repayable advances to eligible
project sponsors under this title to assist the sponsors in constructing,
acquiring, or substantially rehabilitating projects to be used as affordable
rental housing, including limited equity cooperatives and mutual housing.
(b) MAXIMUM AMOUNT OF ADVANCE- An advance under this title shall not exceed
50 percent of the total costs associated with the construction, acquisition,
or substantial rehabilitation of the project, as determined by the Secretary.
(c) TERMS OF REPAYMENT-
(1) INTEREST PAYMENTS-
(A) IN GENERAL- Advances provided under this title shall be repaid with
interest calculated at a rate of not more than 3 percent per year, as
determined by the Secretary to be appropriate. Interest shall begin to accrue
1 year after the completion of the construction, acquisition, or substantial
rehabilitation of the project and shall be payable in annual installments.
(B) EXCEPTION- Interest and any accrued interest shall be payable only
from the surplus cash flow of the project, after a minimum return on equity
determined by the Secretary to be appropriate.
(2) ADDITIONAL INTEREST PAYMENTS- For any year in which the sum of the
surplus cash flow of a project and the return on equity exceeds all interest
payments due under paragraph (1), 50 percent of the excess surplus cash
flow shall be paid to the Secretary as additional interest.
(3) PRINCIPAL AND UNPAID INTEREST-
(A) IN GENERAL- The principal amount of an advance under this title,
and any interest remaining unpaid pursuant to paragraph (1)(B), shall be
payable upon the expiration of the 25-year period following completion of
the construction, acquisition, or substantial rehabilitation of the project.
(B) EXCEPTION- If a project continues to comply with the low income
occupancy and rent provisions of subsections (c) and (d) of section 203
after the termination of the 25-year period--
(i) repayment under subparagraph (A) shall be deferred;
(ii) no further interest on the advance shall accrue; and
(iii) the percentage of the amount that shall be required to be repaid shall
be reduced by 6.7 percentage points for each year of continued compliance.

e734ae9aa8711269fb55a5255da316186d580901aa8ac6f8e1dc6231471f6f5f

(a) ELIGIBLE SPONSORS- Nonprofit entities, for-profit entities, and public
housing agencies shall be eligible to apply for advances under this title
with respect to projects to be owned by such entities and agencies.
(b) COMMENCEMENT OF PROJECT- A project sponsor shall commence construction,
acquisition, or substantial rehabilitation activities under this title
not later than 24 months after notice of project selection, unless the
Secretary for good cause extends the commencement date.
(c) LOW INCOME OCCUPANCY REQUIREMENT- During the 25-year period following the
completion of the construction, acquisition, or substantial rehabilitation
of the project, the project shall be used as affordable rental housing and--
(1) not less than 20 percent of the units in the project shall be occupied,
or available for occupancy, only by very low-income families; or
(2) not less than 40 percent of the units in the project shall be occupied,
or available for occupancy, only by low-income families.
(d) RENT LIMITATIONS-
(1) UNITS FOR VERY LOW-INCOME FAMILIES- The rent charged for any unit
reserved for occupancy by very low-income families shall not exceed 30
percent of the adjusted income of a family whose income equals 40 percent
of the median income for the area involved, as determined by the Secretary
with adjustments for smaller and larger families.
(2) UNITS FOR LOW-INCOME FAMILIES- The rent charged for any unit reserved
for occupancy by low-income families shall not exceed 30 percent of the
adjusted income of a family whose income equals the income ceiling for
very low-income families in the area, as determined by the Secretary with
adjustments for smaller and larger families.
(3) UNITS FOR LOWER INCOME FAMILIES- The rent charged for any unit reserved
for occupancy by lower income families shall not exceed 30 percent of
the adjusted income of a family whose income equals the income ceiling
for low-income families in the area, as determined by the Secretary with
adjustments for smaller and larger families.
(e) CONTINUED OCCUPANCY- A family who occupies a unit reserved for occupancy
for very low- or low-income families but who no longer qualifies as a very
low- or low-income family may continue occupancy in the unit if the family
qualifies as a low or lower income family, respectively. The rent payment
of such families shall be determined in accordance with subsections (d)(2)
and (d)(3), respectively.
(f) LIMITATION ON UNITS ASSISTED-
(1) LOW- AND VERY LOW-INCOME DEDICATED UNITS- Except as provided in paragraph
(3), an advance under this title shall be limited to the amount necessary
to comply with the requirements of subsections (c) and (d) over the term
of the advance.
(2) OTHER ASSISTANCE- If assistance other than assistance under this
title is made available to a project by the Federal Government, a State,
or a unit of general local government, or any agency or instrumentality
thereof, the Secretary, in determining the amount of an advance pursuant to
paragraph (1), shall allocate such assistance to all units in the project
in approximately equal shares, unless the entity making the assistance
available directs that a different allocation be made.
(3) EXCEPTION- If necessary for a project to be feasible, the Secretary
shall increase the amount of an advance calculated pursuant to paragraph
(1) by not more than 10 percent of the total costs associated with the
construction, acquisition, or substantial rehabilitation of the project
(as determined by the Secretary), subject to the limitation on the amount
of an advance under section 202(b).
(g) COST LIMITS-
(1) IN GENERAL- The Secretary shall establish limits on the amount of funds
under this title that may be invested on a per unit basis. The limits
shall be established on a market-by-market basis, with adjustments made
for number of bedrooms. Adjustments shall be made annually to reflect
inflation. Separate limits may be established for different eligible
activities.
(2) CRITERIA- In calculating per unit limits, the Secretary shall take
into account that assistance under this title is intended to--
(A) provide nonluxury housing with suitable amenities;
(B) operate effectively in all jurisdictions; and
(C) facilitate mixed-income housing.
(3) CONSULTATION- In calculating cost limits, the Secretary shall
consult with organizations that have expertise in the development
of affordable housing, including national nonprofit organizations and
national organizations representing private development firms and State
and local governments.

9779aadee94a6d1bc8598d6eb3d099ee83537abe52cbd0d67530a6a017018dc0

(a) IN GENERAL- The Secretary shall establish criteria for the selection of
projects for assistance under this title. Such criteria shall be designed
to select projects in areas and for markets demonstrating the greatest
need for the production of affordable rental housing.
(b) SPECIFIC REQUIREMENTS- The selection criteria shall include--
(1) the extent of shortage of rental housing in the area that is available
to lower income families;
(2) the extent large families with children will be served by the project;
(3) the extent to which project provides congregate facilities and has
available supportive services that will permit elderly or handicapped
residents who become frail and are in need of assistance in living to
continue to reside in the project;
(4) the extent of very low- and low-income occupancy in excess of the
requirements in section 203(c);
(5) the extent of the project sponsor's commitment of equity to the project
(except that this criterion shall not apply to or affect the selection of
applications submitted by public housing agencies and nonprofit entities);
(6) the extent of the project sponsor's commitment of equity to the
project in comparison to the value of all public assistance for the
project, including assistance under this title, other Federal assistance
and financing, and State and local government contributions (except that
this criterion shall not apply to or affect the selection of applications
submitted by public housing agencies and nonprofit entities);
(7) the extent market rents do not exceed rent limitations established
for certificates under section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f);
(8) the extent of non-Federal public or private assistance to the project;
(9) the extent to which the project provides supportive housing for persons
with disabilities; and
(10) any other factor determined by the Secretary to be appropriate.
(c) LIMITATION- In selecting projects for assistance under this title,
the Secretary may not give a preference based on the ownership of the
project sponsor.
(d) Area Eligibility Criteria-
(1) AUTHORITY- In addition to the use of the selection criteria to direct
assistance to projects in areas and for markets demonstrating the greatest
need for the production of affordable rental housing, the Secretary may
establish, by regulation, criteria to limit the areas in which projects
eligible for advances under this title may be located. Such criteria shall
be based on objective and timely data, including the level and duration
of rental housing vacancies, the vacancy and turnover rate of standard
housing units with rents below the fair market rent established for the
area under section 8 of the United States Housing Act of 1937, and the
extent of housing overcrowding.
(2) SPECIAL NEEDS- Projects serving special needs shall be eligible for
advances without regard to any limitation established pursuant to paragraph
(1). Projects serving special needs shall include--
(A) housing for large families with children;
(B) supportive housing for persons with disabilities; and
(C) congregate housing for elderly and handicapped persons.

65984f8e76229562788339ebeed9c5015bd7eb7823cd4234ef49612e8aedea18

(a) ESTABLISHMENT- There is established in the Treasury of the United
States a revolving fund, to be known as the Rental Housing Production Fund.
(b) ASSETS- The Fund shall consist of--
(1) any amount approved in appropriation Acts under section 209 for purposes
of carrying out this title;
(2) any amount received as interest on, or repayment of, loans made under
this title; and
(3) any amount received under subsection (d).
(c) USE OF AMOUNTS- The Fund shall, to the extent approved in appropriations
Acts, be available to the Secretary for purposes of carrying out this title.
(d) INVESTMENT OF EXCESS AMOUNTS- Any amounts in the Fund determined by
the Secretary to be in excess of the amounts currently required to carry
out the provisions of this title shall be invested by the Secretary in
obligations of, or obligations guaranteed as to both principal and interest
by, the United States or any agency of the United States.

f561c763750410b89ed45541dba20d92eeff3800ea7c9a185bd007dabfd83af2

During the period in which a project is subject to the occupancy requirements
and rent limitations in subsections (c) and (d) of section 203, the project
sponsor may not discriminate against prospective tenants or tenants on the
basis of such prospective tenants or tenants receipt of, or eligibility for,
housing assistance under any Federal, State, or local program.

754b42f1066274e9a084c274430a4f6fa18e957eb02a9a63ea057680ce16851a

For purposes of this title:
(1) ADJUSTED INCOME- The term `adjusted income' has the meaning given
the term in section 3(b) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)).
(2) LOW INCOME FAMILIES- The term `low income families' means families and
individuals whose incomes do not exceed 60 percent of the median income
for the area involved, as determined by the Secretary with adjustments for
smaller and larger families, except that the Secretary may establish income
ceilings higher or lower than 60 percent of the median for the area on the
basis of the findings of the Secretary that such variations are necessary
because of prevailing levels of construction costs or unusually high or
low family incomes.
(3) LOWER INCOME FAMILIES- The term `lower income families' means families
and individuals whose incomes do not exceed 80 percent of the median income
for the area involved, as determined by the Secretary with adjustments for
smaller and larger families, except that the Secretary may establish income
ceilings higher or lower than 80 percent of the median for the area on the
basis of the findings of the Secretary that such variations are necessary
because of prevailing levels of construction costs or unusually high or
low family incomes.
(4) PUBLIC HOUSING AGENCY- The term `public housing agency' has the meaning
given the term in section 3(b) of the United States Housing Act of 1937
(42 U.S.C. 1437a(b)).
(5) SECRETARY- The term `Secretary' means the Secretary of Housing and
Urban Development.
(6) SURPLUS CASH FLOW- The term `surplus cash flow' means the cash flow of
the project after the payment of all amounts due under the first mortgage,
operating expenses, and required replacement reserves, as determined by
the Secretary.
(7) VERY LOW-INCOME FAMILIES- The term `very low-income families' means
families and individuals whose incomes do not exceed 50 percent of the
median income for the area involved, as determined by the Secretary with
adjustments for smaller and larger families, except that the Secretary may
establish income ceilings higher or lower than 50 percent of the median
for the area on the basis of the findings of the Secretary that such
variations are necessary because of prevailing levels of construction
costs or unusually high or low family incomes.

cc7fa8468a1e5c687165acb5458a247d6f8388a885a5a6ae2a9a666237dc9662

The Secretary shall issue any regulations necessary to carry out this title.

d347a1afbee66ed5c297586c64c0db15327e6a2e776e4e0ee1c31428c7392e3c

There is authorized to be appropriated to carry out this title $300,000,000
for fiscal year 1991.

d819a96fb07cff2fbeef3d232d7c3b03f7f60904647aa78314da73aeea290008

Section 105(a)(18) of the Housing and Community Development Act of 1974
(42 U.S.C. 5305(a)(18)) is amended by inserting before the semicolon the
following: `or under title II of the Housing and Community Development
Act of 1990'.

2dc7ef8f7a80cdbc277e8a6fe0ecd9b2ee0e8ac27f65cec7dba2738cf12ae6c6

This title may be cited as the `Homeownership and Opportunity for People
Everywhere Act of 1990'.
Subtitle A--HOPE for Public and Indian Housing Homeownership

05b38ba72f3cee60ab0e3013b2749991781e3d2c9c0ed86c45c042740f96d681

f5d5ad1486a3cd2b791fb217276c45b19baf3bdc98ed1bbcc373d1fa345b3cb0

PUBLIC HOUSING.
Section 18(b)(1) of the United States Housing Act of 1937 (42
U.S.C. 1437p(b)(1)) is amended by striking `disposition' and inserting
the following: `disposition, and the tenant councils, resident management
corporation, and tenant cooperative, if any, have been given appropriate
opportunities to purchase the project or portion of the project covered
by the application,'.

bf2f9f21c2d93a681e62b19e5d6f54429719e221774bad54cc0a5054fe23619e

Section 20(f) of the United States Housing Act of 1937 (42 U.S.C. 1437r(f))
is amended by adding at the end the following new paragraph:
`(4) LIMITATION REGARDING ASSISTANCE UNDER HOPE GRANT PROGRAM- The Secretary
may not provide financial assistance under this subsection to any resident
management corporation or resident council with respect to which assistance
for the development or formation of such entity is provided under title
III.'.

4a94bf1e908c50e4aa95396421606b187408372348f86a3de6bbacd58063f27a

TECHNICAL AND OTHER ASSISTANCE.
Section 21(a) of the United States Housing Act of 1937 (42 U.S.C. 1437s(a))
is amended--
(1) by striking subparagraph (B) of paragraph (2) and inserting the
following new subparagraph:
`(B) The Secretary may provide financial assistance to public housing
agencies, resident management corporations, or resident councils that
obtain, by contract or otherwise, training, technical assistance, and
educational assistance as the Secretary determines to be necessary to
promote homeownership opportunities under this section. Of any amounts
made available under appropriations Acts for financial assistance under
section 14, the Secretary may use not more than $3,000,000 in any fiscal
year to carry out this subparagraph.';
(2) in paragraph (2)(C), by striking `September 30, 1990.' and inserting
the following: `the effective date of the regulations implementing subtitle
A of title III of the Housing and Community Development Act of 1990. The
Secretary may not provide financial assistance under subparagraph (B),
after such effective date, unless the Secretary determines that such
assistance is necessary for the development of a homeownership program
that was initiated, as determined by the Secretary, before the date of
the enactment of such Act.'; and
(3) in paragraph (3)(C), by striking `September 30, 1990.' and inserting
the following: `the effective date of the regulations implementing subtitle
A of title III of the Housing and Community Development Act of 1990. The
authority for a resident management corporation to purchase 1 or more
multifamily buildings in a public housing project from a public housing
agency shall terminate after such effective date, unless the Secretary
determines that such purchase is necessary for the development of a
homeownership program that was initiated, as determined by the Secretary,
before the date of the enactment of such Act.'.

6127634aab6d430376228d85268fa901f53970a4f83abf72444fa17359d1d352

Not later than the expiration of the 120-day period beginning on the date
that funds authorized under title III of the United States Housing Act
of 1937 first become available for obligation, the Secretary shall by
notice establish such requirements as may be necessary to carry out the
provisions of this subtitle. Such requirements shall be subject to section
553 of title 5, United States Code. The Secretary shall issue regulations
based on the initial notice before the expiration of the 8-month period
beginning on the date of the notice.

70bf06bcac3cb440b696750c9353023bdc7b0e2eea39119b3cbb8dd6739b1697

In accordance with section 201(b)(2) of the United States Housing Act
of 1937, the amendments made by this subtitle shall also apply to public
housing developed or operated pursuant to a contract between the Secretary
of Housing and Urban Development and an Indian Housing Authority.
Subtitle B--HOPE for Homeownership of Multifamily Units

c6b5c005b0648057e5cb66dfc5133ed7ac6fbdab661f18e2f64d7849de416c49

(a) IN GENERAL-
(1) GRANTS- The Secretary is authorized to make--
(A) planning grants to enable applicants to develop homeownership programs;
and
(B) implementation grants to enable applicants to carry out homeownership
programs.
(2) GRANT LIMITATIONS-
(A) Not more than 15 percent of the amounts appropriated pursuant to
subsection (c) for any fiscal year may be used for planning grants under
this section.
(B) Not more than 5 percent of the amounts reserved for planning grants
under subparagraph (A) may be used for grants to any single grant recipient.
(b) AUTHORITY TO RESERVE HOUSING ASSISTANCE- In connection with a grant under
this subtitle, the Secretary may reserve authority to provide assistance
under section 8 of the United States Housing Act of 1937 (other than
assistance under section 8(o)) to the extent necessary to provide rental
assistance for a non-purchasing tenant who resides in the property on the
date the Secretary approves an application for an implementation grant,
for use by the tenant in that or another property.
(c) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated
for grants under this subtitle $102,000,000 for fiscal year 1991. Any
amounts appropriated pursuant to this subsection shall remain available
until expended.

93150308d5aa7e6a00c8403bc81b1960e97c160cefec5894ec4e58e04cf10423

(a) GRANTS- The Secretary is authorized to make planning grants to applicants
for the purpose of developing homeownership programs under this subtitle.
(b) ELIGIBLE ACTIVITIES- Planning grants may be used for activities to
develop homeownership programs (which may include programs for cooperative
ownership), including--
(1) development of resident management corporations and resident councils;
(2) training and technical assistance of applicants related to the
development of a specific homeownership program;
(3) studies of the feasibility of a homeownership program;
(4) preliminary architectural and engineering work;
(5) tenant and homebuyer counseling and training;
(6) planning for establishment of for- or not-for-profit small businesses
by or on behalf of residents, job training, and other activities that
promote economic self-sufficiency of homebuyers and homeowners under the
homeownership program and economic development of the neighborhood; and
(7) preparation of an application for an implementation grant under this
subtitle.
(c) APPLICATION-
(1) FORM AND PROCEDURES- An application for a planning grant shall
be submitted by an applicant in such form and in accordance with such
procedures as the Secretary shall establish.
(2) MINIMUM REQUIREMENTS- The Secretary shall require that an application
contain at a minimum--
(A) a request for a planning grant, specifying the activities proposed to
be carried out, the schedule for completing the activities, the personnel
necessary to complete the activities, and the amount of the grant requested;
(B) a description of the applicant and a statement of its qualifications;
(C) identification and description of the eligible property involved,
and a description of the composition of the tenants, including family size
and income; and
(D) a certification that the applicant will comply with the requirements of
the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504
of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975,
and will affirmatively further fair housing.
(d) SELECTION CRITERIA- The Secretary shall, by regulation, establish
selection criteria for a national competition for assistance under this
section, which shall include--
(1) the qualifications of the applicant;
(2) the extent of tenant interest in the development of a homeownership
program for the property;
(3) the potential of the applicant for developing a successful and affordable
homeownership program and the suitability of the property for homeownership;
(4) national geographic diversity among housing for which applicants are
selected to receive assistance; and
(5) such other factors that the Secretary shall require that (in the
determination of the Secretary) are appropriate for purposes of carrying
out the program established by this subtitle in an effective and efficient
manner.

38ac6bdfc331a1361fc6acb2391f61fc69ca6fd7603dc2ecbff266dd610afa44

(a) GRANTS- The Secretary is authorized to make implementation grants to
applicants for the purpose of carrying out homeownership programs that
meet the requirements of this subtitle.
(b) ELIGIBLE ACTIVITIES- Implementation grants may be used for activities
to carry out homeownership programs (including programs for cooperative
ownership), including the following activities:
(1) Architectural and engineering work.
(2) Acquisition of the eligible property for the purpose of transferring
ownership to eligible families in accordance with a homeownership program
that meets the requirements under this subtitle.
(3) Rehabilitation of any property covered by the homeownership program,
in accordance with standards established by the Secretary.
(4) Administrative costs of the applicant, which may not exceed 15 percent
of the amount of the assistance provided under this section.
(5) Development of resident management corporations and resident management
councils, but only if the applicant has not received assistance under
section 322 for such activities.
(6) Counseling and training of homebuyers and homeowners under the
homeownership program.
(7) Relocation of tenants who elect to move.
(8) Any necessary temporary relocation of tenants during rehabilitation.
(9) Planning for establishment of for- or not-for-profit small businesses
by or on behalf of residents, job training, and other activities that
promote economic self-sufficiency of homebuyers and homeowners of the
property covered by the homeownership program and economic development of
the neighborhood.
(10) Funding of operating expenses and replacement reserves of the property
covered by the homeownership program.
(c) MATCHING AMOUNTS- Each recipient of a grant under this section shall
ensure that at least one-third of the total cost of eligible activities under
this section that are necessary to carry out the homeownership program
are provided from non-Federal sources. For purposes of the preceding
sentence, non-Federal sources may include block grants made available
by the Federal Government to States and local governments on a formula
basis. In determining compliance with this subsection, a recipient may
include such items as the Secretary determines to be appropriate, if such
items have a readily discernible market value.
(d) APPLICATION-
(1) FORM AND PROCEDURE- An application for an implementation grant shall
be submitted by an applicant in such form and in accordance with such
procedures as the Secretary shall establish.
(2) MINIMUM REQUIREMENTS- The Secretary shall require that an application
contain at a minimum--
(A) a request for an implementation grant, specifying the amount of the
grant requested and its proposed uses;
(B) where applicable, an application for assistance under section 8 of
the United States Housing Act of 1937, specifying the proposed uses of
such assistance and the period during which the assistance will be needed;
(C) a description of the qualifications and experience of the applicant
in providing lower income housing;
(D) a description of the proposed homeownership program, consistent with
section 324 and the other requirements of this subtitle, specifying the
activities proposed to be carried out and their estimated costs, identifying
reasonable schedules for carrying it out, and demonstrating the program
will comply with the affordability requirements under section 324(b);
(E) identification and description of the property involved, and a
description of the composition of the tenants, including family size
and income;
(F) a description of and commitment for the resources that are expected to
be made available to provide the matching funding required under subsection
(c) and of other resources that are expected to be made available in
support of the homeownership program;
(G) identification and description of the financing proposed for any (i)
rehabilitation, and (ii) acquisition (I) of the property, where applicable,
by a resident or other entity for transfer to eligible families, and (II)
by eligible families of ownership interests in, or shares representing,
units in the property;
(H) the proposed sales price, the basis for such price determination, and
terms to an entity, if any, that will purchase the property for resale to
eligible families;
(I) the proposed sales prices, if any, and terms to eligible families;
(J) any proposed restrictions on the resale of units under a homeownership
program; and
(K) a certification that the applicant will comply with the requirements of
the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504
of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975,
and will affirmatively further fair housing.
(e) SELECTION CRITERIA- The Secretary shall, by regulation, establish
selection criteria for a national competition for assistance under this
section, which shall include--
(1) the ability of the applicant to develop and carry out the proposed
homeownership program, taking into account the quality of any related
ongoing program of the applicant, the extent of tenant interest in the
development of a homeownership program and community support;
(2) the feasibility of the homeownership program;
(3) the homeownership program meets the requirements for affordability
under section 324(b);
(4) the extent to which the project receives support from entities other
than those assisted under this subtitle;
(5) national geographic diversity among housing for which applicants are
selected to receive assistance; and
(6) the extent to which a sufficient supply of affordable rental housing
of the type assisted under this subtitle exists in the locality, so that
the implementation of the homeownership program will not appreciably reduce
the number of such rental units available to residents currently residing
in such units or eligible for residency in such units.
(f) APPROVAL- The Secretary shall notify each applicant, not later than
6 months after the date of the submission of the application, whether
the application is approved or not approved. The Secretary may approve the
application for an implementation grant with a statement that the application
for assistance under section 8 of the United States Housing Act of 1937 for
residents of the project not purchasing units is conditionally approved,
subject to the availability of appropriations in subsequent fiscal years.

071cdf1451cf59ad8d3fbde9761dbe14bf7a3fee2f8562803402294f70ff988a

(a) IN GENERAL- A homeownership program under this subtitle shall provide
for acquisition by eligible families of ownership interest in, or shares
representing, the units in an eligible property under any arrangement
determined by the Secretary to be appropriate, such as cooperative ownership
(including limited equity cooperative ownership) and fee simple ownership
(including condominium ownership), for occupancy by the eligible families.
(b) AFFORDABILITY- A homeownership program under this subtitle shall provide
for the establishment of sales prices (including principal, insurance, taxes,
and interest and closing costs) for initial acquisition of the property,
and for sales to eligible families, such that the eligible family shall
not be required to expend more than 30 percent of the adjusted income of
the family per month to complete a sale under the homeownership program.
(c) PLAN- A homeownership program under this subtitle shall provide,
and include a plan, for--
(1) identifying and selecting eligible families to participate in the
homeownership program;
(2) providing relocation assistance to families who elect to move;
(3) ensuring continued affordability by tenants, homebuyers, and homeowners
in the property; and
(4) providing ongoing training and counseling for homebuyers and homeowners.
(d) ACQUISITION AND REHABILITATION LIMITATION- Acquisition or rehabilitation
of a property under a homeownership program under this subtitle may not
consist of acquisition or rehabilitation of less than all of the units
in the property.  The provisions of this subsection may be waived upon a
finding by the Secretary that the sale of less than all the buildings in
a project is feasible and will not result in a hardship to any tenants of
the project who are not included in the homeownership program.
(e) FINANCING-
(1) TERMS- Financing under a homeownership program may include use of
the implementation grant, sale for cash, and other sources of financing
(subject to applicable requirements), including conventional mortgage
loans and mortgage loans insured under title II of the National Housing Act.
(2) DEFAULT- Any lender that provides financing in connection with a
homeownership program under this title shall give the acquiring entity,
resident management council, purchasers of individual units, or other
appropriate entity a reasonable opportunity to cure a financial default
before foreclosing on the property, or taking other action as a result of
the default.
(f) HOUSING QUALITY STANDARDS- The application shall include a plan ensuring
that the unit will--
(1) be free from any defects that pose a substantial danger to health or
safety before transfer of an ownership interest in, or shares representing,
a unit to an eligible family; and
(2) meet housing quality standards established by the Secretary for the
purpose of this subtitle no more than 2 years after transfer of an ownership
interest in, or shares representing, a unit to an eligible family.
(g) PROTECTION OF NONPURCHASING FAMILIES-
(1) IN GENERAL- No tenant residing in a dwelling unit in a property on
the date the Secretary approves an application for an implementation grant
may be evicted by reason of a homeownership program under this subtitle.
(2) REPLACEMENT ASSISTANCE- The recipient shall inform each such tenant
that if the tenant decides not to purchase a unit, or is not qualified
to do so, the recipient will request the public housing agency to offer
assistance under section 8 of the United States Housing Act of 1937 (other
than assistance under subsection (o) of such section) to each qualified
tenant, for use in that or another property.
(3) RELOCATION ASSISTANCE- The recipient shall also inform each such tenant
that if the tenant chooses to move, the recipient will pay relocation
assistance in accordance with the approved homeownership program.

36e1d57f7c9c329f47dc0683b471464b7e153b1d3edccf5f8c0a387d4cdee3cd

(a) PREFERENCES FOR CURRENT TENANTS- In selecting eligible families for
homeownership, a recipient shall give preference to current tenants.
(b) COST LIMITATIONS- The Secretary may establish cost limitations on
eligible activities under this subtitle, subject to the provisions of
this subtitle.
(c) USE OF PROCEEDS FROM SALES TO ELIGIBLE FAMILIES- The entity that
transfers ownership interests in, or shares representing, units to eligible
families, or another entity specified in the approved application,
shall use the proceeds, if any, from the initial sale for costs of the
homeownership program, including operating expenses, improvements to the
project, business opportunities for lower income families, supportive
services related to the homeownership program, additional homeownership
opportunities, and other activities approved by the Secretary.
(d) RESTRICTIONS ON RESALE BY HOMEOWNERS-
(1) FIRST PURCHASE RIGHT- A homeowner under a homeownership program may
transfer the homeowner's ownership interest in, or shares representing,
the unit. Where a grant recipient, resident management corporation, resident
council, or cooperative has jurisdiction over the unit, the grant recipient,
corporation, council, or cooperative shall have the right to purchase the
ownership interest in, or shares representing, the unit from the homeowner
for the amount specified in a firm contract between the homeowner and a
prospective buyer.
(2) ADDITIONAL RESALE RESTRICTIONS- The homeownership program may establish
restrictions on the resale of a unit under the program.
(3) RECAPTURE OF PROCEEDS- With respect to a homeowner assisted under a
homeownership program under this subtitle, if such homeowner sells a unit
or shares representing a unit within 5 years after the acquisition by the
homeowner, the Secretary shall provide for the recapture by the Secretary
of an amount equal to the net proceeds received by the homeowner from
any sale or transfer of the unit by such homeowner less the sum of the
following amounts:
(A) Any equity interest of the homeowner in the unit (including any costs
paid at closing).
(B) The value of any improvements made by the homeowner during ownership
of the unit.
(C) An amount equal to the price paid for the unit upon sale to the homeowner
multiplied by any percent increase in the appropriate consumer price index,
as published monthly by the Bureau of Labor Statistics, over the period
the property is owned by the homeowner.
(4) USE OF RECAPTURED AMOUNTS- Any portion of the net sales proceeds that
may not be retained by the homeowner pursuant to paragraph (3) shall be
returned to the Secretary for use under this subtitle, subject to approval
under appropriations Acts.
(5) THIRD PARTY RIGHTS- The requirements under this subsection regarding
rehabilitation, resale, or transfer of the ownership interest of a homeowner
shall be judicially enforceable against the grant recipient with respect
to actions involving rehabilitation and purchasers of property under this
subsection or their successors in interest with respect to other actions by
affected lower income families, resident management corporations, resident
councils, and any agency, corporation, or authority of the United States
Government. The parties specified in the preceding sentence shall be entitled
to reasonable attorney fees upon prevailing in any such judicial action.
(e) DOLLAR LIMITATION ON ECONOMIC DEVELOPMENT ACTIVITIES- Not more than
an aggregate of $250,000 from amounts made available under sections 322
and 323 may be used for economic development activities under sections
322(b)(6) and 323(b)(9) for any project.
(f) CONTINUATION OF AFFORDABILITY REQUIREMENTS- Any recipient of a grant
under section 323 that assumes a mortgage covering eligible property shall,
in addition to any requirements of the homeownership program, comply with
the low-income affordability restrictions under the mortgage for a period
not shorter than the remaining term of the mortgage.

afa000f952a711c0a99750a95e533d84f3e6bc5e298b3dd21acb5da1ac21acff

Public and Assisted Housing Drug Elimination Act of 1990 — S. 566

Other Sections