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S. Rep. 102-332 (7/23/92)

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S. Rep. 102-332 (7/23/92) HCDA -- S. Rep. 102-332 (7/23/92) WARNING WARNING WARNING WARNING!!!!!!!!! THE ACCURACY OF THIS ELECTRONIC DOCUMENT RECEIVED FROM GPO IS NOT GUARANTEED. USE WITH CAUTION. CONFIRM LANGUAGE BY COMPARING WITH THE PRINTED VERSION OF THE REPORT. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! NOTE: THIS FILE CONTAINS PAGES 1-212 OF THE SENATE COMMITTEE REPORT (102-332) FOR S. 3031, WHICH LEAD TO THE HCD ACT OF 1992. THE REMAINDER OF THE REPORT (PAGES 213-361) CONTAINS S. 3031 AS REPORTED BY THE COMMITTEE AND IS NOT INCLUDED IN DAS. ================================= CALENDAR NO. 558 102d Congress SENATE REPORT 2d Session 102-332 NATIONAL AFFORDABLE HOUSING ACT AMENDMENTS OF 1992 R E P O R T of the COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS UNITED STATE SENATE TO ACCOMPANY S. 3031 together with ADDITIONAL VIEWS July 23, 1992.-Ordered to be printed -------------------------- U.S. GOVERNMENT PRINTING OFFICE 57-474 WASHINGTON: 1992 ======================================= COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS DONALD W. RIEGLE, Jr., Michigan, Chairman ALAN CRANSTON, California PAUL S. SARBANES, Maryland CHRISTOPHER J. DODD, Connecticut ALAN J. DIXON, Illinois JIM SASSER, Tennessee TERRY SANFORD, North Carolina RICHARD C. SHELBY, Alabama BOB GRAHAM, Florida TIMOTHY E. WIRTH, Colorado JOHN F. KERRY, Massachusetts RICHARD H. BRYAN, Nevada JAKE GARN, Utah ALFONSE M. D'AMATO, New York PHIL GRAMM, Texas CHRISTOPHER S. BOND, Missouri CONNIE MACK, Florida WILLIAM V. ROTH, Jr., Delaware PETE V. DOMENICI, New Mexico NANCY LANDON KASSEBAUM, Kansas ARLEN SPECTER, Pennsylvania Steven B. Harris, Staff Director and Chief Counsel Lamar Smith, Republican Staff Director and Economist Jeannine Jacokes, Professional Staff Member Matt Roberts, Counsel Kevin Chavers, Counsel Edward M. Malan, Editor -------------------------------- SUBCOMMITTEE ON HOUSING AND URBAN AFFAIRS ALAN CRANSTON, California, Chairman JIM SASSER, Tennessee TERRY STANFORD, North Carolina BOB GRAHAM, Florida JOHN F. KERRY, Massachusetts RICHARD H. BRYAN, Nevada PAUL S. SARBANES, Maryland CHRISTOPHER J. DODD, Connecticut RICHARD C. SHELBY, Alabama ALFONSE M. D'AMATO, New York PHIL GRAMM, Texas CHRISTOPHER S. BOND, Missouri CONNIE MACK, Florida WILLIAM V. ROTH, Jr., Delaware PETE V. DOMENICI, New Mexico NANCY LANDON KASSEBAUM, Kansas ARLEN SPECTER, Pennsylvania Bruce J. Katz, Staff Director Eileen Gallagher, Professional Staff Member Nancy Smith, Counsel Cheryl Fox, Counsel Chandra Williams, Legislative Assistant Kris Warren, Office Manager Garth B. Rieman, Republican Staff Director Kristen Siglin, Professional Staff Member Fallie E. Bolen, Professional Staff Member (II) C O N T E N T S Page Number Legislative history of the act 1 The affordable housing crisis 4 Summary of the committee bill 8 Explanation of the legislation 10 Title I-General Provisions and policies 10 Title II-Investment in affordable housing 15 Title III: Subtitle A. Homeownership initiatives 27 Subtitle B. FHA and secondary mortgage market 29 Title IV-HOPE 41 Title V-Housing assistance 45 Subtitle A. Public and Indian housing 45 Subtitle B. Low-income rental assistance 58 Subtitle C. General provisions and other assistance programs 65 Title VI-Preservation 66 Subtitle A. Prepayment of mortgage insured under the National Housing Act 66 Subtitle B. RESTORE for troubled multifamily housing 74 Title VII-Rural housing 76 Title VIII-Housing for persons with special needs 84 Subtitle A. Supportive housing for the elderly 84 Subtitle B. Supportive housing for persons with disabilities 84 Subtitle C. Supportive housing for the homeless 85 Subtitle D. Housing opportunities for persons with AIDS 87 Title IX-Community development and miscellaneous programs 88 Subtitle A. Community and neighborhood development and preservation 88 Subtitle B. Regulatory programs 94 Subtitle C. Miscellaneous programs 94 Title X-Residential lead-based paint hazard reduction 107 Subtitle A. Lead-based paint hazard reduction 115 Subtitle B. Evaluation and reduction infrastructure 121 Subtitle C. Public information in the private real estate transaction 122 Subtitle D. and E. Research and development and reports 123 SECTION-BY-SECTION TITLE I-GENERAL PROVISIONS AND POLICIES Sec. 101. Comprehensive housing affordability strategy refinements 124 Sec. 102. Performance goals 124 Sec. 103. Subsidy layering review 124 Sec. 104. Capacity study 124 Sec. 105. Salaries and expenses 125 Sec. 106. Regulation of consultants 125 TITLE II-INVESTMENT IN AFFORDABLE HOUSING Sec. 201. HOME authorization 125 Sec. 202. New construction 125 Sec. 203. Administrative costs 125 Sec. 204. Tenant-based rental assistance 126 Sec. 205. Maximum subsidy limitations 126 Sec. 206. Rent calculations 126 Sec. 207. Homeownership resale restrictions 126 Sec. 208. Rental housing production set-aside 126 Sec. 209. Matching requirements 127 Sec. 210. Community housing production set-aside 127 Sec. 211. Redevelopment of blighted urban areas model program 127 Sec. 212. Transitional housing opportunities 128 TITLE III-HOMEOWNERSHIP Subtitle A-Homeownership Initiatives Sec. 301. National homeownership trust authorization 128 Sec. 302. Enterprise zone homeownership opportunity grants 128 Subtitle B-FHA and Secondary Mortgage Market Sec. 311. National Interagency Task Force on Multifamily Housing 130 Sec. 312. Multifamily finance demonstration 131 Sec. 313. Expenditures to correct defects 133 Sec. 314. Repeal of warranty requirement 133 TITLE IV-HOPE Sec. 401. Authorization 133 Sec. 402. HOPE amendments 134 Sec. 403. HOPE for Youth: Youthbuild 134 TITLE V-HOUSING ASSISTANCE Subtitle A-Public and Indian Housing Sec. 501. Authorizations 139 Sec. 502. Reform of public housing management 140 Sec. 503. Revitalization of severely distressed public housing 141 Sec. 504. Choice in Management Act of 1992 154 Sec. 505. Directive to relieve regulatory burden 159 Sec. 506. Celing rents 159 Sec. 507. Replacement housing 159 Sec. 508. Income eligibility 160 Sec. 509. Applicability of definitions to Indian housing 160 Sec. 510. Preference rules 160 Subtitle B-Low-Income Rental Assistance Sec. 521. Voucher and certificate homeownership 160 Sec. 522. Moving to opportunity for fair housing 162 Sec. 523. Family unification assistance 164 Sec. 524. Housing assistance in Jefferson County, Texas 164 Sec. 525. Applicability of amendment to McKinney Act 164 Subtitle C-General Provisions and Other Assistance Programs Sec. 531. Low-income housing authorization 164 Sec. 532. Housing counseling 165 Sec. 533. Public and assisted housing drug elimination 165 TITLE VI-PRESERVATION Subtitle A-Prepayment of Mortgages Insured Under National Housing Act Sec. 601. Authorization 166 Sec. 602. Prepayment amendments 166 Subtitle B-Other Preservation Provisions Sec. 611. RESTORE for troubled mutifamily housing 170 TITLE VII-RURAL HOUSING Sec. 701. Program authorizations 172 Sec. 702. Deferred mortgage demonstration 172 Sec. 703. Set-aside for underserved areas and colonias 173 Sec. 704. Permanent authority for section 523 173 Sec. 705. Nonprofit set-aside 173 Sec. 706. Housing preservation grants 173 Sec. 707. Use of FMHA inventory for transitional housing for homeless persons and for turnkey housing 173 Sec. 708. Preservation 174 Sec. 709. Disaster assistance 174 Sec. 710. Administrative appeals process 174 Sec. 711. Prohibition on transfer of rural housing programs 174 Sec. 712. FMHA reform provisions 174 Sec. 713. Rural voucher program 175 Sec. 714. Site acquisition and development 175 Sec. 715. Subdivision approval 175 TITLE VIII-HOUSING FOR PERSONS WITH SPECIAL NEEDS Subtitle A-Supportive Housing for the Elderly Sec. 801. Authorization 176 Sec. 802. Supportive housing for the elderly 176 Subtitle B-Supportive Housing for Persons With Disabilities Sec. 811. Authorization 176 Subtitle C-Supportive Housing for the Homeless Sec. 821. Authorization 176 Sec. 822. Safe Havens for the homeless 177 Sec. 823. Applicability of Shelter Plus Care 180 Subtitle D-Housing Opportunities for Persons With AIDS Sec. 831. Authorization 180 Sec. 832. Program amendments 180 Sec. 833. Housing opportunities for persons with AIDS 180 TITLE IX-COMMUNITY DEVELOPMENT AND MISCELLANEOUS PROGRAMS Subtitle A-Community and Neighborhood Development and Preservation Sec. 901. Community development authorizations 180 Sec. 902. Homeownership assistance under CDBG 180 Sec. 903. State set-aside for technical assistance 180 Sec. 904. Elimination of nonhousing community development plan 181 Sec. 905. Loans of CDBG funds 181 Sec. 906. CDBG code enforcement 181 Sec. 907. CDBG set-aside for colonias 181 Sec. 908. Approval of multijurisdictional agreements 181 Sec. 909. Neighborhood-based nonprofit organizations 181 Sec. 910. Economic development 181 Sec. 911. Neighborhood development program 182 Sec. 912. Neighborhood Reinvestment Corporation Act 183 Subtitle B-Regulatory Programs Sec. 921. National commissions 183 Subtitle C-Miscellaneous Programs Sec. 931. HUD research and development 183 Sec. 932. Fair housing initiatives program 183 Sec. 933. Economic opportunities for low- and very low-income persons 185 Sec. 934. Study of section 3 of the Housing and Urban Development Act of 1968 187 Sec. 935. Study on the housing impact of military base expansion 187 Sec. 936. Nehemiah housing opportunity grants 188 Sec. 937. Sense of the Senate 188 Sec. 938. Improved coordination of urban policy 188 Sec. 939. Community Outreach Act 188 Sec. 940. Report on community development lending 189 Sec. 941. Report on community development banking 189 Sec. 942. Flood control restoration
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