[House Report 105-297]
[From the U.S. Government Publishing Office]
105th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 105-297
_______________________________________________________________________
MAKING APPROPRIATIONS FOR THE DEPARTMENTS OF VETERANS AFFAIRS AND
HOUSING AND URBAN DEVELOPMENT, AND FOR SUNDRY INDEPENDENT AGENCIES,
COMMISSIONS, CORPORATIONS, AND OFFICES FOR THE FISCAL YEAR ENDING
SEPTEMBER 30, 1998, AND FOR OTHER PURPOSES
_______
October 6, 1997.--Ordered to be printed
_______________________________________________________________________
Mr. Lewis of California, from the committee of conference, submitted
the following
CONFERENCE REPORT
[To accompany H.R. 2158]
The committee of conference on the disagreeing votes of
the two Houses on the amendment of the Senate to the bill (H.R.
2158) ``making appropriations for the Departments of Veterans
Affairs and Housing and Urban Development, and for sundry
independent agencies, commissions, corporations, and offices
for the fiscal year ending September 30, 1998, and for other
purposes,'' having met, after full and free conference, have
agreed to recommend and do recommend to their respective Houses
as follows:
That the House recede from its disagreement to the
amendment of the Senate, and agree to the same with an
amendment, as follows:
In lieu of the matter stricken and inserted by said
amendment, insert:
That the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the Departments of
Veterans Affairs and Housing and Urban Development, and for
sundry independent agencies, commissions, corporations, and
offices for the fiscal year ending September 30, 1998, and for
other purposes, namely:
TITLE I--DEPARTMENT OF VETERANS AFFAIRS
Veterans Benefits Administration
compensation and pensions
(including transfers of funds)
For the payment of compensation benefits to or on behalf of
veterans and a pilot program for disability examinations as
authorized by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53,
55, and 61); pension benefits to or on behalf of veterans as
authorized by law (38 U.S.C. chapters 15, 51, 53, 55, and 61;
92 Stat. 2508); and burial benefits, emergency and other
officers' retirement pay, adjusted-service credits and
certificates, payment of premiums due on commercial life
insurance policies guaranteed under the provisions of Article
IV of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended, and for other benefits as authorized by law (38 U.S.C.
107, 1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61; 50
U.S.C. App. 540-548; 43 Stat. 122, 123; 45 Stat. 735; 76 Stat.
1198); $19,932,997,000, to remain available until expended:
Provided, That not to exceed $26,380,000 of the amount
appropriated shall be reimbursed to ``General operating
expenses'' and ``Medical care'' for necessary expenses in
implementing those provisions authorized in the Omnibus Budget
Reconciliation Act of 1990, and in the Veterans' Benefits Act
of 1992 (38 U.S.C. chapters 51, 53, and 55), the funding source
for which is specifically provided as the ``Compensation and
pensions'' appropriation: Provided further, That such sums as
may be earned on an actual qualifying patient basis, shall be
reimbursed to ``Medical facilities revolving fund'' to augment
the funding of individual medical facilities for nursing home
care provided to pensioners as authorized by the Veterans'
Benefits Act of 1992 (38 U.S.C. chapter 55).
readjustment benefits
For the payment of readjustment and rehabilitation benefits
to or on behalf of veterans as authorized by 38 U.S.C. chapters
21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61, $1,366,000,000,
to remain available until expended: Provided, That funds shall
be available to pay any court order, court award or any
compromise settlement arising from litigation involving the
vocational training program authorized by section 18 of Public
Law 98-77, as amended.
veterans insurance and indemnities
For military and naval insurance, national service life
insurance, servicemen's indemnities, service-disabled veterans
insurance, and veterans mortgage life insurance as authorized
by 38 U.S.C. chapter 19; 70 Stat. 887; 72Stat. 487,
$51,360,000, to remain available until expended.
veterans housing benefit program fund program account
(including transfer of funds)
For the cost of direct and guaranteed loans, such sums as
may be necessary to carry out the program, as authorized by 38
U.S.C. chapter 37, as amended: Provided, That such costs,
including the cost of modifying such loans, shall be as defined
in section 502 of the Congressional Budget Act of 1974, as
amended: Provided further, That during fiscal year 1998, within
the resources available, not to exceed $300,000 in gross
obligations for direct loans are authorized for specially
adapted housing loans: Provided further, That during 1998 any
moneys that would be otherwise deposited into or paid from the
Loan Guaranty Revolving Fund, the Guaranty and Indemnity Fund,
or the Direct Loan Revolving Fund shall be deposited into or
paid from the Veterans Housing Benefit Program Fund: Provided
further, That any balances in the Loan Guaranty Revolving Fund,
the Guaranty and Indemnity Fund, or the Direct Loan Revolving
Fund on the effective date of this Act may be transferred to
and merged with the Veterans Housing Benefit Program Fund.
In addition, for administrative expenses to carry out the
direct and guaranteed loan programs, $160,437,000, which may be
transferred to and merged with the appropriation for ``General
operating expenses''.
education loan fund program account
(including transfer of funds)
For the cost of direct loans, $1,000, as authorized by 38
U.S.C. 3698, as amended: Provided, That such costs, including
the cost of modifying such loans, shall be as defined in
section 502 of the Congressional Budget Act of 1974, as
amended: Provided further, That these funds are available to
subsidize gross obligations for the principal amount of direct
loans not to exceed $3,000.
In addition, for administrative expenses necessary to carry
out the direct loan program, $200,000, which may be transferred
to and merged with the appropriation for ``General operating
expenses''.
vocational rehabilitation loans program account
(including transfer of funds)
For the cost of direct loans, $44,000, as authorized by 38
U.S.C. chapter 31, as amended: Provided, That such costs,
including the cost of modifying such loans, shall be as defined
in section 502 of the Congressional Budget Act of 1974, as
amended: Provided further, That these funds are available to
subsidize gross obligations for the principal amount of direct
loans not to exceed $2,278,000.
In addition, for administrative expenses necessary to carry
out the direct loan program, $388,000, which may be transferred
to and merged with the appropriation for ``General operating
expenses''.
native american veteran housing loan program account
(including transfer of funds)
For administrative expenses to carry out the direct loan
program authorized by 38 U.S.C. chapter 37, subchapter V, as
amended, $515,000, which may be transferred to and merged with
the appropriation for ``General operating expenses''.
Veterans Health Administration
medical care
(including transfer of funds)
For necessary expenses for the maintenance and operation of
hospitals, nursing homes, and domiciliary facilities; for
furnishing, as authorized by law, inpatient and outpatient care
and treatment to beneficiaries of the Department of Veterans
Affairs, including care and treatment in facilities not under
the jurisdiction of the Department; and furnishing recreational
facilities, supplies, and equipment; funeral, burial, and other
expenses incidental thereto for beneficiaries receiving care in
the Department; administrative expenses in support of planning,
design, project management, real property acquisition and
disposition, construction and renovation of any facility under
the jurisdiction or for the use of the Department;
oversight,engineering and architectural activities not charged to
project cost; repairing, altering, improving or providing facilities in
the several hospitals and homes under the jurisdiction of the
Department, not otherwise provided for, either by contract or by the
hire of temporary employees and purchase of materials; uniforms or
allowances therefor, as authorized by 5 U.S.C. 5901-5902; aid to State
homes as authorized by 38 U.S.C. 1741; administrative and legal
expenses of the Department for collecting and recovering amounts owed
the Department as authorized under 38 U.S.C. chapter 17, and the
Federal Medical Care Recovery Act, 42 U.S.C. 2651 et seq.; and not to
exceed $8,000,000 to fund cost comparison studies as referred to in 38
U.S.C. 8110(a)(5); $17,057,396,000, plus reimbursements: Provided, That
of the funds made available under this heading, $570,000,000 is for the
equipment and land and structures object classifications only, which
amount shall not become available for obligation until August 1, 1998,
and shall remain available until September 30, 1999: Provided further,
That of the amount made available under this heading, not to exceed
$5,000,000 shall be for a study on the cost-effectiveness of
contracting with local hospitals in East Central Florida for the
provision of non-emergent inpatient health care needs of veterans.
In addition, in conformance with Public Law 105-33
establishing the Department of Veterans Affairs Medical Care
Collections Fund, such sums as may be deposited to such Fund
pursuant to 38 U.S.C. 1729A may be transferred to this account,
to remain available until expended for the purposes of this
account.
medical and prosthetic research
For necessary expenses in carrying out programs of medical
and prosthetic research and development as authorized by 38
U.S.C. chapter 73, to remain available until September 30,
1999, $272,000,000, plus reimbursements.
medical administration and miscellaneous operating expenses
For necessary expenses in the administration of the
medical, hospital, nursing home, domiciliary, construction,
supply, and research activities, as authorized by law;
administrative expenses in support of planning, design, project
management, architectural, engineering, real property
acquisition and disposition, construction and renovation of any
facility under the jurisdiction or for the use of the
Department of Veterans Affairs, including site acquisition;
engineering and architectural activities not charged to project
cost; and research and development in building construction
technology; $59,860,000, plus reimbursements.
general post fund, national homes
(including transfer of funds)
For the cost of direct loans, $7,000, as authorized by
Public Law 102-54, section 8, which shall be transferred from
the ``General post fund'': Provided, That such costs, including
the cost of modifying such loans, shall be as defined in
section 502 of the Congressional Budget Act of 1974, as
amended: Provided further, That these funds are available to
subsidize gross obligations for the principal amount of direct
loans not to exceed $70,000.
In addition, for administrative expenses to carry out the
direct loan programs, $54,000, which shall be transferred from
the ``General post fund'', as authorized by Public Law 102-54,
section 8.
Departmental Administration
general operating expenses
For necessary operating expenses of the Department of
Veterans Affairs, not otherwise provided for, including
uniforms or allowances therefor; not to exceed $25,000 for
official reception and representation expenses; hire of
passenger motor vehicles; and reimbursement of the General
Services Administration for security guard services, and the
Department of Defense for the cost of overseas employee mail;
$786,135,000: Provided, That funds under this heading shall be
available to administer the ServiceMembers Occupational
Conversion and Training Act: Provided further, That none of the funds
made available under this heading may be used for the relocation of the
loan guaranty divisions of the Department of Veterans Affairs Regional
Office in St. Petersburg, Florida to the Department of Veterans Affairs
Regional Office in Atlanta, Georgia.
national cemetery system
For necessary expenses for the maintenance and operation of
the National Cemetery System, not otherwise provided for,
including uniforms or allowances therefor; cemeterial expenses
as authorized by law; purchase of three passenger motor
vehicles for use in cemeterial operations; and hire of
passenger motor vehicles, $84,183,000.
office of inspector general
For necessary expenses of the Office of Inspector General
in carrying out the Inspector General Act of 1978, as amended,
$31,013,000.
construction, major projects
For constructing, altering, extending and improving any of
the facilities under the jurisdiction or for the use of the
Department of Veterans Affairs, or for any of the purposes set
forth in sections 316, 2404, 2406, 8102, 8103, 8106, 8108,
8109, 8110, and 8122 of title 38, United States Code, including
planning, architectural and engineering services, maintenance
or guarantee period services costs associated with equipment
guarantees provided under the project, services of claims
analysts, offsite utility and storm drainage system
construction costs, and site acquisition, where the estimated
cost of a project is $4,000,000 or more or where funds for a
project were made available in a previous major project
appropriation, $177,900,000, to remain available until
expended: Provided, That the $32,100,000 provided under this
heading in Public Law 104-204 for the replacement hospital at
Travis Air Force Base, Fairfield, CA, shall not be obligated
for that purpose but shall be available for any project
approved by the Congress in the budgetary process: Provided
further, That except for advance planning of projects funded
through the advance planning fund and the design of projects
funded through the design fund, none of these funds shall be
used for any project which has not been considered and approved
by the Congress in the budgetary process: Provided further,
That funds provided in this appropriation for fiscal year 1998,
for each approved project shall be obligated (1) by the
awarding of a construction documents contract by September 30,
1998, and (2) by the awarding of a construction contract by
September 30, 1999: Provided further, That the Secretary shall
promptly report in writing to the Committees on Appropriations
any approved major construction project in which obligations
are not incurred within the time limitations established above:
Provided further, That no funds from any other account except
the ``Parking revolving fund'', may be obligated for
constructing, altering, extending, or improving a project which
was approved in the budget process and funded in this account
until one year after substantial completion and beneficial
occupancy by the Department of Veterans Affairs of the project
or any part thereof with respect to that part only.
construction, minor projects
For constructing, altering, extending, and improving any of
the facilities under the jurisdiction or for the use of the
Department of Veterans Affairs, including planning,
architectural and engineering services, maintenance or
guarantee period services costs associated with equipment
guarantees provided under the project, services of claims
analysts, offsite utility and storm drainage system
construction costs, and site acquisition, or for any of the
purposes set forth in sections 316, 2404, 2406, 8102, 8103,
8106, 8108, 8109, 8110, and 8122 of title 38, United States
Code, where the estimated cost of a project is less than
$4,000,000; $175,000,000, to remain available until expended,
along with unobligated balances of previous ``Construction,
minor projects'' appropriations which are hereby made available
for any project where the estimated cost is less than
$4,000,000: Provided, That fundsin this account shall be
available for (1) repairs to any of the nonmedical facilities under the
jurisdiction or for the use of the Department which are necessary
because of loss or damage caused by any natural disaster or
catastrophe, and (2) temporary measures necessary to prevent or to
minimize further loss by such causes.
parking revolving fund
For the parking revolving fund as authorized by 38 U.S.C.
8109, income from fees collected, to remain available until
expended, which shall be available for all authorized expenses
except operations and maintenance costs, which will be funded
from ``Medical care''.
grants for construction of state extended care facilities
For grants to assist States to acquire or construct State
nursing home and domiciliary facilities and to remodel, modify
or alter existing hospital, nursing home and domiciliary
facilities in State homes, for furnishing care to veterans as
authorized by 38 U.S.C. 8131-8137, $80,000,000, to remain
available until expended.
grants for the construction of state veteran cemeteries
For grants to aid States in establishing, expanding, or
improving State veteran cemeteries as authorized by 38 U.S.C.
2408, $10,000,000, to remain available until expended.
administrative provisions
(including transfer of funds)
Sec. 101. Any appropriation for fiscal year 1998 for
``Compensation and pensions'', ``Readjustment benefits'', and
``Veterans insurance and indemnities'' may be transferred to
any other of the mentioned appropriations.
Sec. 102. Appropriations available to the Department of
Veterans Affairs for fiscal year 1998 for salaries and expenses
shall be available for services authorized by 5 U.S.C. 3109.
Sec. 103. No appropriations in this Act for the Department
of Veterans Affairs (except the appropriations for
``Construction, major projects'', ``Construction, minor
projects'', and the ``Parking revolving fund'') shall be
available for the purchase of any site for or toward the
construction of any new hospital or home.
Sec. 104. No appropriations in this Act for the Department
of Veterans Affairs shall be available for hospitalization or
examination of any persons (except beneficiaries entitled under
the laws bestowing such benefits to veterans, and persons
receiving such treatment under 5 U.S.C. 7901-7904 or 42 U.S.C.
5141-5204), unless reimbursement of cost is made to the
``Medical care'' account at such rates as may be fixed by the
Secretary of Veterans Affairs.
Sec. 105. Appropriations available to the Department of
Veterans Affairs for fiscal year 1998 for ``Compensation and
pensions'', ``Readjustment benefits'', and ``Veterans insurance
and indemnities'' shall be available for payment of prior year
accrued obligations required to be recorded by law against the
corresponding prior year accounts within the last quarter of
fiscal year 1997.
Sec. 106. Appropriations accounts available to the
Department of Veterans Affairs for fiscal year 1998 shall be
available to pay prior year obligations of corresponding prior
year appropriations accounts resulting from title X of the
Competitive Equality Banking Act, Public Law 100-86, except
that if such obligations are from trust fund accounts they
shall be payable from ``Compensation and pensions''.
Sec. 107. Notwithstanding any other provision of law,
during fiscal year 1998, the Secretary of Veterans Affairs
shall, from the National Service Life Insurance Fund (38 U.S.C.
1920), the Veterans' Special Life Insurance Fund (38 U.S.C.
1923), and the United States Government Life Insurance Fund (38
U.S.C. 1955), reimburse the ``General operating expenses''
account for the cost of administration of the insurance
programs financed through those accounts: Provided, That
reimbursement shall be made only from the surplus earnings
accumulatedin an insurance program in fiscal year 1998, that
are available for dividends in that program after claims have been paid
and actuarially determined reserves have been set aside: Provided
further, That if the cost of administration of an insurance program
exceeds the amount of surplus earnings accumulated in that program,
reimbursement shall be made only to the extent of such surplus
earnings: Provided further, That the Secretary shall determine the cost
of administration for fiscal year 1998, which is properly allocable to
the provision of each insurance program and to the provision of any
total disability income insurance included in such insurance program.
Sec. 108. Section 214(l)(1)(D) of the Immigration and
Nationality Act (8 U.S.C. 1184(l)(1)(D)) (as added by section
220 of the Immigration and Nationality Technical Corrections
Act of 1994 and redesignated as subsection (l) by section
671(a)(3)(A) of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996) is amended by inserting before the
period at the end the following: ``, except that, in the case
of a request by the Department of Veterans Affairs, the alien
shall not be required to practice medicine in a geographic area
designated by the Secretary''.
Sec. 109. In accordance with section 1557 of title 31,
United States Code, the following obligated balance shall be
exempt from subchapter IV of chapter 15 of such title and shall
remain available for expenditure without fiscal year
limitation: Funds obligated by the Department of Veterans
Affairs for lease number 757-084B-001-91 from funds made
available in the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 1993 (Public Law 102-389) under the heading ``Medical
care''.
TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Public and Indian Housing
housing certificate fund
(including transfers of funds)
For activities and assistance to prevent the involuntary
displacement of low-income families, the elderly and the
disabled because of the loss of affordable housing stock,
expiration of subsidy contracts (other than contracts for which
amounts are provided under another heading in this Act) or
expiration of use restrictions, or other changes in housing
assistance arrangements, and for other purposes,
$9,373,000,000, to remain available until expended: Provided,
That of the total amount provided under this heading,
$8,180,000,000 shall be for assistance under the United States
Housing Act of 1937 (42 U.S.C. 1437) for use in connection with
expiring or terminating section 8 subsidy contracts, for
enhanced vouchers as provided under the ``Preserving Existing
Housing Investment'' account in the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1997, (Public Law 104-204), and
contracts entered into pursuant to section 441 of the Stewart
B. McKinney Homeless Assistance Act: Provided further, That the
Secretary may determine not to apply section 8(o)(6)(B) of the
Act to housing vouchers during fiscalyear 1998: Provided
further, That of the total amount provided under this head,
$850,000,000 shall be for amendments to section 8 contracts other than
contracts for projects developed under section 202 of the Housing Act
of 1959, as amended: Provided further, That of the total amount
provided under this heading, $343,000,000 shall be for section 8 rental
assistance under the United States Housing Act of 1937 including
assistance to relocate residents of properties (i) that are owned by
the Secretary and being disposed of or (ii) that are discontinuing
section 8 project-based assistance; for the conversion of section 23
projects to assistance under section 8; for funds to carry out the
family unification program; and for the relocation of witnesses in
connection with efforts to combat crime in public and assisted housing
pursuant to a request from a law enforcement or prosecution agency:
Provided further, That of the total amount made available in the
preceding proviso, $40,000,000 shall be made available to nonelderly
disabled families affected by the designation of a public housing
development under section 7 of such Act, the establishment of
preferences in accordance with section 651 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1361l), or the restriction of
occupancy to elderly families in accordance with section 658 of such
Act, and to the extent the Secretary determines that such amount is not
needed to fund applications for such affected families, to other
nonelderly disabled families: Provided further, That the amount made
available under the fifth proviso under the heading ``Prevention of
Resident Displacement'' in title II of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997, Public Law 104-204, shall also be made
available to nonelderly disabled families affected by the restriction
of occupancy to elderly families in accordance with section 658 of the
Housing and Community Development Act of 1992: Provided further, That
to the extent the Secretary determines that the amount made available
under the fifth proviso under the heading ``Prevention of Resident
Displacement'' in title II of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1997, Public Law 104-204, is not needed to fund applications for
affected families described in the fifth proviso, or in the preceding
proviso under this heading in this Act, the amount not needed shall be
made available to other nonelderly disabled families: Provided further,
That all balances, as of September 30, 1997, remaining in the ``Annual
Contributions for Assisted Housing'' account and the ``Prevention of
Resident Displacement'' account for use in connection with expiring or
terminating section 8 subsidy contracts and for amendments to section 8
contracts other than contracts for projects developed under section 202
of the Housing Act of 1959, as amended, shall be transferred to and
merged with the amounts provided for those purposes under this heading.
section 8 reserve preservation account
The amounts recaptured during fiscal year 1998 that were
heretofore made available to public housing agencies for
tenant-based assistance under the section 8 existing housing
certificate and housing voucher programs from the Annual
Contributions for Assisted Housing account shall be collected
in the account under this heading, for use as provided for
under this heading, as set forth under the Annual Contributions
for Assisted Housing heading in chapter 11 of Public Law 105-
18, approved June 12, 1997.
annual contributions for assisted housing
(including rescission and transfer of funds)
Notwithstanding any other provision of law, of the amounts
recaptured under this heading during fiscal year 1998 and prior
years, $550,000,000, heretofore maintained as section 8
reserves made available to housing agencies for tenant-based
assistance under the section 8 existing housing certificate and
housing voucher programs, are rescinded.
All balances outstanding as of September 30, 1997, in the
Preserving Existing Housing Investment Accountfor the
Preservation program shall be transferred to and merged with the
amounts previously provided for those purposes under this heading.
public housing capital fund
(including transfers of funds)
For the Public Housing Capital Fund Program for
modernization of existing public housing projects as authorized
under section 14 of the United States Housing Act of 1937, as
amended (42 U.S.C. 1437), $2,500,000,000, to remain available
until exended: Provided, That of the total amount, $30,000,000
shall be for carrying out activities under section 6(j) of such
Act and technical assistance for the inspection of public
housing units, contract expertise, and training and technical
assistance directly or indirectly, under grants, contracts, or
cooperative agreements, to assist in the oversight and
management of public housing (whether or not the housing is
being modernized with assistance under this proviso) or tenant-
based assistance, including, but not limited to, an annual
resident survey, data collection and analysis, training and
technical assistance by or to officials and employees of the
Department and of public housing agencies and to residents in
connection with the public housing program and for lease
adjustments to section 23 projects: Provided further, That of
the amount available under this heading, up to $5,000,000 shall
be for the Tenant Opportunity Program: Provided further, That
all balances, as of September 30, 1997, of funds heretofore
provided (other than for Indian families) for the development
or acquisition costs of public housing, for modernization of
existing public housing projects, for public housing
amendments, for public housing modernization and development
technical assistance, for lease adjustments under the section
23 program, and for the Family Investment Centers program,
shall be transferred to and merged with amounts made available
under this heading.
public housing operating fund
(including transfer of funds)
For payments to public housing agencies for operating
subsidies for low-income housing projects as authorized by
section 9 of the United States Housing Act of 1937, as amended
(42 U.S.C. 1437g), $2,900,000,000, to remain available until
expended: Provided, That all balances outstanding, as of
September 30, 1997, of funds heretofore provided (other than
for Indian families) for payments to public housing agencies
for operating subsidies for low-income housing projects, shall
be transferred to and merged with amounts made available under
this heading.
drug elimination grants for low-income housing
(including transfer of funds)
For grants to public housing agencies and tribally
designated housing entities for use in eliminating crime in
public housing projects authorized by 42 U.S.C. 11901-11908,
for grants for federally assisted low-income housing authorized
by 42 U.S.C. 11909, and for drug information clearinghouse
services authorized by 42 U.S.C. 11921-11925, $310,000,000, to
remain available until expended, of which $10,000,000 shall be
for grants, technical assistance, contracts and other
assistance, training, and program assessment and execution for
or on behalf of public housing agencies, resident
organizations, and Indian Tribes and their tribally designated
housing entities (including the cost of necessary travel for
participants in such training); $10,000,000 shall be used in
connection with efforts to combat violent crime in public and
assisted housing under the Operation Safe Home Program
administered by the Inspector General of the Department of
Housing and Urban Development; $10,000,000 shall be provided to
the Office of Inspector General for Operation Safe Home; and
$20,000,000 shall be available for a program named the New
Approach Anti-Drug program which will provide competitive
grants to entities managing or operating public housing
developments, federally assisted multifamily housing
developments, or other multifamily housing developments for
low-income families supported by non-Federal governmental
entities or similar housing developments supported by nonprofit
private sources in order to provide or augment security
(including personnel costs), to assist in the investigation
and/or prosecution of drug related criminal activity in and
around such developments, and to provide assistance for the
development of capital improvements at such developments
directly relating to the security of such developments:
Provided, That grants for the New Approach Anti-Drug program
shall be made on a competitive basis as specified in section
102 of the Department of Housing and Urban Development Reform
Act of 1989: Provided further, That the term ``drug-related
crime'', as defined in 42 U.S.C. 11905(2), shall also include
other types of crime as determined by the Secretary: Provided
further, That, notwithstanding section 5130(c) of the Anti-Drug
Abuse Act of 1988 (42 U.S.C. 11909(c)), the Secretary may
determine not to use any such funds to provide public housing
youth sports grants.
revitalization of severely distressed public housing (hope vi)
For grants to public housing agencies for assisting in the
demolition of obsolete public housing projects or portions
thereof, the revitalization (where appropriate) of sites
(including remaining public housing units) on which such
projects are located, replacement housing which willavoid or
lessen concentrations of very low-income families, and tenant-based
assistance in accordance with section 8 of the United States Housing
Act of 1937; and for providing replacement housing and assisting
tenants displaced by the demolition, $550,000,000, to remain available
until expended, of which the Secretary may use up to $10,000,000 for
technical assistance and contract expertise, to be provided directly or
indirectly by grants, contracts or cooperative agreements, including
training and cost of necessary travel for participants in such
training, by or to officials and employees of the Department and of
public housing agencies and to residents: Provided, That of the amount
made available under this heading, $26,000,000 shall be made available,
including up to $10,000,000 for Heritage House in Kansas City,
Missouri, for the demolition of obsolete elderly public housing
projects and the replacement, where appropriate, and revitalization of
the elderly public housing as new communities for the elderly designed
to meet the special needs and physical requirements of the elderly:
Provided further, That no funds appropriated under this heading shall
be used for any purpose that is not provided for herein, in the United
States Housing Act of 1937, in the Appropriations Acts for the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies, for the fiscal years 1993, 1994, 1995, and 1997,
and the Omnibus Consolidated Rescissions and Appropriations Act of
1996: Provided further, That none of such funds shall be used directly
or indirectly by granting competitive advantage in awards to settle
litigation or pay judgments, unless expressly permitted herein.
native american housing block grants
(including transfers of funds)
For the Native American Housing Block Grants program, as
authorized under title I of the Native American Housing
Assistance and Self-Determination Act of 1996 (Public Law 104-
330), $600,000,000, to remain available until expended, of
which $5,000,000 shall be used to support the inspection of
Indian housing units, contract expertise, training, and
technical assistance in the oversight and management of Indian
housing and tenant-based assistance, including up to $200,000
for related travel: Provided, That of the amount provided under
this heading, $5,000,000 shall be made available for the cost
of guaranteed notes and other obligations, as authorized by
title VI of the Native American Housing Assistance and Self-
Determination Act of 1996: Provided further, That such costs,
including the costs of modifying such notes and other
obligations, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further,
That these funds are availableto subsidize the total principal
amount of any notes and other obligations, any part of which is to be
guaranteed, not to exceed $217,000,000: Provided further, That the
funds made available in the first proviso are for a demonstration on
ways to enhance economic growth, to increase access to private capital,
and to encourage the investment and participation of traditional
financial institutions in tribal and other Native American areas:
Provided further, That all balances outstanding as of September 30,
1997, previously appropriated under the headings ``Annual Contributions
for Assisted Housing'', ``Development of Additional New Subsidized
Housing'', ``Preserving Existing Housing Investment'', ``HOME
Investment Partnerships Program'', ``Emergency Shelter Grants
Program'', and ``Homeless Assistance Funds'', identified for Indian
Housing Authorities and other agencies primarily serving Indians or
Indian areas, shall be transferred to and merged with amounts made
available under this heading.
indian housing loan guarantee fund program account
For the cost of guaranteed loans, as authorized by section
184 of the Housing and Community Development Act of 1992 (106
Stat. 3739), $5,000,000, to remain available until expended:
Provided, That such costs, including the costs of modifying
such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further,
That these funds are available to subsidize total loan
principal, any part of which is to be guaranteed, not to exceed
$73,800,000.
capital grants/capital loans preservation account
At the discretion of the Secretary, to reimburse owners,
nonprofits, and tenant groups for which plans of action were
submitted with regard to eligible properties under the Low-
Income Housing Preservation and Resident Homeownership Act of
1990 (LIHPRHA) or the Emergency Low Income Housing Preservation
Act of 1987 (ELIHPA) prior to the effective date of this Act,
but were not executed for lack of available funds, with such
reimbursement available only for documented costs directly
applicable to the preparation of the plan of action or any
purchase agreement as determined by the Secretary, on terms and
conditions to be established by the Secretary, $10,000,000
shall be made available.
Community Planning and Development
housing opportunities for persons with aids
For carrying out the Housing Opportunities for Persons with
AIDS program, as authorized by the AIDS Housing Opportunity Act
(42 U.S.C. 12901), $204,000,000, to remain available until
expended: Provided, That of the amount made available under
this heading for non-formula allocation, the Secretary may
designate, on a noncompetitive basis, one or more nonprofit
organizations that provide meals delivered to homebound persons
with acquired immunodeficiency syndrome or a related disease to
receive grants, not exceeding $250,000 for any grant, and the
Secretary shall assess the efficacy of providing such
assistance to such persons.
community development block grants
(including transfers of funds)
For grants to States and units of general local government
and for related expenses, not otherwise provided for, to carry
out a community development grants program as authorized by
title I of the Housing and Community Development Act of 1974,
as amended (the ``Act'' herein) (42 U.S.C. 5301),
$4,675,000,000, to remain available until September 30, 2000:
Provided, That $67,000,000 shall be for grants to Indian tribes
notwithstanding section 106(a)(1) of such Act; $2,100,000 shall
be available as a grant to the Housing Assistance Council;
$1,500,000 shall be available as a grant to the National
American Indian Housing Council; $32,000,000 shall be for
grants pursuant to section 107 of such Act; $7,500,000 shall be
for the Community Outreach Partnership program; $16,700,000
shall be for grants pursuant to section 11 of the Housing
Opportunity Program Extension Act of 1996 (Public Law 104-120):
Provided further, That not to exceed 20 percent of any grant
made with funds appropriated herein (other than a grant made
available under the preceding proviso to the Housing Assistance
Council or the National American Indian Housing Council, or a
grant using funds under section 107(b)(3) of the Housing and
Community Development Act of 1974, as amended) shall be
expended for ``Planning and Management Development'' and
``Administration'' as defined in regulations promulgated by the
Department.
Of the amount made available under this heading,
$15,000,000 shall be made available for ``Capacity Building for
Community Development and Affordable Housing,'' as authorized
by section 4 of the HUD Demonstration Act of 1993 (Public Law
103-120), as in effect immediately before June 12, 1997, with
not less than $5,000,000 of the funding to be used in rural
areas, including tribal areas.
Of the amount provided under this heading, the Secretary of
Housing and Urban Development may use up to $55,000,000 for a
public and assisted housing self-sufficiency program, of which
up to $5,000,000 may be used for the Moving to Work
Demonstration, and at least $7,000,000 shall be used for grants
for service coordinators and congregate services for the
elderly and disabled: Provided, That for self-sufficiency
activities, the Secretary may make grants to public
housingagencies (including Indian tribes and their tribally designated
housing entities), nonprofit corporations, and other appropriate
entities for a supportive services program to assist residents of
public and assisted housing, former residents of such housing receiving
tenant-based assistance under section 8 of such Act (42 U.S.C. 1437f),
and other low-income families and individuals: Provided further, That
the program shall provide supportive services, principally for the
benefit of public housing residents, to the elderly and the disabled,
and to families with children where the head of household would benefit
from the receipt of supportive services and is working, seeking work,
or is preparing for work by participating in job training or
educational programs: Provided further, That the supportive services
may include congregate services for the elderly and disabled, service
coordinators, and coordinated education, training, and other supportive
services, including academic skills training, job search assistance,
assistance related to retaining employment, vocational and
entrepreneurship development and support programs, transportation, and
child care: Provided further, That the Secretary shall require
applications to demonstrate firm commitments of funding or services
from other sources: Provided further, That the Secretary shall select
public and Indian housing agencies to receive assistance under this
heading on a competitive basis, taking into account the quality of the
proposed program, including any innovative approaches, the extent of
the proposed coordination of supportive services, the extent of
commitments of funding or services from other sources, the extent to
which the proposed program includes reasonably achievable, quantifiable
goals for measuring performance under the program over a three-year
period, the extent of success an agency has had in carrying out other
comparable initiatives, and other appropriate criteria established by
the Secretary (except that this proviso shall not apply to renewal of
grants for service coordinators and congregate services for the elderly
and disabled).
Of the amount made available under this heading,
notwithstanding any other provision of law, $35,000,000 shall
be available for YouthBuild program activities authorized by
subtitle D of title IV of the Cranston-Gonzalez National
Affordable Housing Act, as amended, and such activities shall
be an eligible activity with respect to any funds made
available under this heading. Local YouthBuild programs that
demonstrate an ability to leverage private and nonprofit
funding shall be given a priority for YouthBuild funding.
Of the amount made available under this heading $25,000,000
shall be available for the Secretary, in consultation with the
Secretary of Agriculture, to make grants, not to exceed
$4,000,000 each, for rural and tribal areas, including at least
one Native American area in Alaska and one rural area in each
of the States of Iowa and Missouri, to test comprehensive
approaches to developing a job base through economic
development, developing affordable low- and moderate-income
rental and homeownership housing, and increasing the investment
of both private and nonprofit capital.
Of the amount made available under this heading,
$138,000,000 shall be available for the Economic Development
Initiative (EDI) to finance a variety of efforts, including
$100,000,000 for making grants for targeted economic
investments in accordance with the terms and conditions
specified for such grants in the conference report and the
joint explanatory statement of the committee of conference
accompanying this Act (H.R. 2158).
Of the amount made available under this heading,
notwithstanding any other provision of law, $60,000,000 shall
be available for the lead-based paint hazard reduction program
as authorized under sections 1011 and 1053 of the Residential
Lead-Based Hazard Reduction Act of 1992.
Of the amount made available under this heading,
$25,000,000, including $15,000,000 for the County of San
Bernardino, California, shall be used for neighborhood
initiatives that are utilized to improve the conditions of
distressed and blighted areas and neighborhoods, and to
determine whether housing benefits can be integrated more
effectively with welfare reform initiatives.
For the cost of guaranteed loans, $29,000,000, as
authorized by section 108 of the Housing and Community
Development Act of 1974: Provided, That such costs, including
the cost of modifying such loans, shall be as defined in
section 502 of the Congressional Budget Act of 1974, as
amended: Provided further, That these funds are available to
subsidize total loan principal, any part of which is to be
guaranteed, not to exceed $1,261,000,000, notwithstanding any
aggregate limitation on outstanding obligations guaranteed in
section 108(k) of the Housing and Community Development Act of
1974. In addition, for administrative expenses to carry out the
guaranteed loan program, $1,000,000, which shall be transferred
to and merged with the appropriation for departmental salaries
and expenses.
Of the $500,000,000 made available under the heading
``Community Development Block Grants Fund'' in the 1997
Emergency Supplemental Appropriations Act for Recovery from
Natural Disasters, and for Overseas Peacekeeping Efforts,
Including Those in Bosnia (Public Law 105-18), not more than
$3,500,000 shall be made available for the non-Federal cost-
share for a levee project at Devils Lake, North Dakota:
Provided, That the Secretary of Housing and Urban Development
shall provide the State of North Dakota with a waiver to allow
the use of its annual Community Development Block Grant
allocation for use in funding the non-Federal cost-share for a
levee project at Devils Lake, North Dakota: Provided further,
That notwithstanding any other provision of law, the Secretary
is prohibited from providing waivers, other than those provided
herein, for funds in excess of $100,000 in emergency Community
Development Block Grants funds for the non-Federal cost-share
of projects funded by the Secretary of the Army through the
Corps of Engineers.
brownfields redevelopment
For Economic Development Grants, as authorized by section
108(q) of the Housing and Community Development Act of 1974, as
amended, for Brownfields redevelopment projects, $25,000,000,
to remain available until expended: Provided, That the
Secretary of Housing and Urban Development shall make these
grants available on a competitive basis as specified in section
102 of the Department of Housing and Urban Development Reform
Act of 1989.
empowerment zones and enterprise communities
For planning grants, technical assistance, contracts and
other assistance, and training in connection with Empowerment
Zones and Enterprise Communities, designated by the Secretary
of Housing and Urban Development, to continue efforts to
stimulate economic opportunity in America's distressed
communities, $5,000,000, to remain available until expended.
home investment partnerships program
For the HOME investment partnerships program, as authorized
under title II of the Cranston-Gonzalez National Affordable
Housing Act (Public Law 101-625), as amended, $1,500,000,000,
to remain available until expended: Provided, That up to
$7,000,000 shall be available for the development and operation
of integrated community development management information
systems: Provided further, That $20,000,000 shall be available
for Housing Counseling under section 106 of the Housing and
Urban Development Act of 1968: Provided further, That up to
$10,000,000 shall be available to carry out a demonstration
program in which the Secretary makes grants to up to three
organizations exempt from Federal taxation under section
501(c)(3) of the Internal Revenue Code, selected on a
competitive basis, to demonstrate methods of expanding
homeownership opportunities for low-income borrowers through
expanding the secondary market for non-conforming home mortgage
loans to low-wealth borrowers: Provided further, That grantees
for such demonstration program shall have experience in working
with lenders who make non-conforming loans to low-income
borrowers, have experience in expanding the secondary market
for such loans, have demonstrated success in carrying out such
activities including raising non-Federal grants and capital on
concessionary terms for the purpose of expanding the secondary
market for loans in the previous two years in amounts equal to
or exceeding the amount awarded to such organization under this
paragraph, and have demonstrated the ability to provide data on
the performance of such loans sufficientto allow for future
analysis of the investment risk of such loans.
supportive housing program
(rescission)
Of the funds made available under this heading in Public
Law 102-389 and prior laws for the Supportive Housing
Demonstration Program, as authorized by the Stewart B. McKinney
Homeless Assistance Act, $6,000,000 of funds recaptured during
fiscal year 1998 shall be rescinded.
shelter plus care
(rescission)
Of the funds made available under this heading in Public
Law 102-389 and prior laws for the Shelter Plus Care program,
as authorized by the Stewart B. McKinney Homeless Assistance
Act, $4,000,000 of funds recaptured during fiscal year 1998
shall be rescinded.
homeless assistance grants
For the emergency shelter grants program (as authorized
under subtitle B of title IV of the Stewart B. McKinney
Homeless Assistance Act, as amended); the supportive housing
program (as authorized under subtitle C of title IV of such
Act); the section 8 moderate rehabilitation single room
occupancy program (as authorized under the United States
Housing Act of 1937, as amended) to assist homeless individuals
pursuant to section 441 of the Stewart B. McKinney Homeless
Assistance Act; and the shelter plus care program (as
authorized under subtitle F of title IV of such Act),
$823,000,000, to remain available until expended.
Housing Programs
housing for special populations
(including transfers of funds)
For assistance for the purchase, construction, acquisition,
or development of additional public and subsidized housing
units for low income families under the United States Housing
Act of 1937, as amended (42 U.S.C. 1437), not otherwise
provided for, $839,000,000, to remain available until expended:
Provided, That of the total amount provided under this heading,
$645,000,000 shall be for capital advances, including
amendments to capital advance contracts, for housing for the
elderly, as authorized by section 202 of the Housing Act of
1959, as amended, and for project rental assistance, and
amendments to contracts for project rental assistance, for the
elderly under section 202(c)(2) of the Housing Act of 1959, and
for supportive services associated with the housing; and
$194,000,000 shall be for capital advances, including
amendments to capital advance contracts, for supportive housing
for persons with disabilities, as authorized by section 811 of
the Cranston-Gonzalez National Affordable Housing Act, for
project rental assistance, for amendments to contracts for
project rental assistance, and supportive services associated
with the housing for persons with disabilities as authorized by
section 811 of such Act: Provided further, That the Secretary
may designate up to 25 percent of the amounts earmarked under
this paragraph for section 811 of such Act for tenant-based
assistance, as authorized under that section, including such
authority as may be waived under the next proviso, which
assistance is five years in duration: Provided further, That
the Secretary may waive any provision of section 202 of the
Housing Act of 1959 and section 811 of the Cranston-Gonzalez
National Affordable Housing Act (including the provisions
governing the terms and conditions of project rental assistance
and tenant-based assistance) that the Secretary determines is
not necessary to achieve the objectives of these programs, or
that otherwise impedes the ability to develop, operate or
administer projects assisted under these programs, and may make
provision for alternative conditions or terms where
appropriate: Provided further, That all balances, as of
September 30, 1997, remaining in either the ``Annual
Contributions for Assisted Housing'' account or the
``Development of Additional New Subsidized Housing'' account
for capital advances, including amendments to capital advances,
for housing for the elderly, as authorized by section 202 of
the Housing Actof 1959, as amended, and for project rental
assistance, and amendments to contracts for project rental assistance,
for supportive housing for the elderly, under section 202(c)(2) of such
Act, shall be transferred to and merged with the amounts for those
purposes under this heading; and, all balances, as of September 30,
1997, remaining in either the ``Annual Contributions for Assisted
Housing'' account or the ``Development of Additional New Subsidized
Housing'' account for capital advances, including amendments to capital
advances, for supportive housing for persons with disabilities, as
authorized by section 811 of the Cranston-Gonzalez National Affordable
Housing Act, and for project rental assistance, and amendments to
contracts for project rental assistance, for supportive housing for
persons with disabilities, as authorized under section 811 of such Act,
shall be transferred to and merged with the amounts for those purposes
under this heading.
other assisted housing programs
rental housing assistance
(rescission)
The limitation otherwise applicable to the maximum payments
that may be required in any fiscal year by all contracts
entered into under section 236 of the National Housing Act (12
U.S.C. 1715z-1) is reduced in fiscal year 1998 by not more than
$7,350,000 in uncommitted balances of authorizations provided
for this purpose in appropriation Acts: Provided, That up to
$125,000,000 of recaptured budget authority shall be canceled.
flexible subsidy fund
(transfer of funds)
From the Rental Housing Assistance Fund, all uncommitted
balances of excess rental charges as of September 30, 1997, and
any collections made during fiscal year 1998, shall be
transferred to the Flexible Subsidy Fund, as authorized by
section 236(g) of the National Housing Act, as amended.
Federal Housing Administration
fha--mutual mortgage insurance program account
(including transfers of funds)
During fiscal year 1998, commitments to guarantee loans to
carry out the purposes of section 203(b) of the National
Housing Act, as amended, shall not exceed a loan principal of
$110,000,000,000.
During fiscal year 1998, obligations to make direct loans
to carry out the purposes of section 204(g) of the National
Housing Act, as amended, shall not exceed $200,000,000:
Provided, That the foregoing amount shall be for loans to
nonprofit and governmental entities in connection with sales of
single family real properties owned by the Secretary and
formerly insured under the Mutual Mortgage Insurance Fund.
For administrative expenses necessary to carry out the
guaranteed and direct loan program, $338,421,000, to be derived
from the FHA-mutual mortgage insurance guaranteed loans receipt
account, of which not to exceed $326,309,000 shall be
transferred to the appropriation for departmental salaries and
expenses; and of which not to exceed $12,112,000 shall be
transferred to the appropriation for the Office of Inspector
General.
fha--general and special risk program account
(including transfers of funds)
For the cost of guaranteed loans, as authorized by sections
238 and 519 of the National Housing Act (12 U.S.C. 1715z-3 and
1735c), including the cost of loan guarantee modifications (as
that term is defined in section 502 of the Congressional Budget
Act of 1974, as amended), $81,000,000, to remain available
until expended: Provided, That these funds are available to
subsidize total loan principal, any part of which is to be
guaranteed, of up to $17,400,000,000: Provided further, That
any amounts made available in any prior appropriations Act for
the cost (as such term is defined in section 502 of the
Congressional Budget Act of 1974) of guaranteed loans that are
obligations of the funds established under section 238 or 519
of the National Housing Act that havenot been obligated or that
are deobligated shall be available to the Secretary of Housing and
Urban Development in connection with the making of such guarantees and
shall remain available until expended, notwithstanding the expiration
of any period of availability otherwise applicable to such amounts.
Gross obligations for the principal amount of direct loans,
as authorized by sections 204(g), 207(l), 238(a), and 519(a) of
the National Housing Act, shall not exceed $120,000,000; of
which not to exceed $100,000,000 shall be for bridge financing
in connection with the sale of multifamily real properties
owned by the Secretary and formerly insured under such Act; and
of which not to exceed $20,000,000 shall be for loans to
nonprofit and governmental entities in connection with the sale
of single-family real properties owned by the Secretary and
formerly insured under such Act.
In addition, for administrative expenses necessary to carry
out the guaranteed and direct loan programs, $222,305,000, of
which $218,134,000, including $25,000,000 for the enforcement
of housing standards on FHA-insured multifamily projects, shall
be transferred to the appropriation for departmental salaries
and expenses; and of which $4,171,000 shall be transferred to
the appropriation for the Office of Inspector General.
Government National Mortgage Association
guarantees of mortgage-backed securities loan guarantee program account
(including transfer of funds)
During fiscal year 1998, new commitments to issue
guarantees to carry out the purposes of section 306 of the
National Housing Act, as amended (12 U.S.C. 1721(g)), shall not
exceed $130,000,000,000.
For administrative expenses necessary to carry out the
guaranteed mortgage-backed securities program, $9,383,000, to
be derived from the GNMA-guarantees of mortgage-backed
securities guaranteed loan receipt account, of which not to
exceed $9,383,000 shall be transferred to the appropriation for
departmental salaries and expenses.
Policy Development and Research
research and technology
For contracts, grants, and necessary expenses of programs
of research and studies relating to housing and urban problems,
not otherwise provided for, as authorized by title V of the
Housing and Urban Development Act of 1970, as amended (12
U.S.C. 1701z-1 et seq.), including carrying out the functions
of the Secretary under section 1(a)(1)(i) of Reorganization
Plan No. 2 of 1968, $36,500,000, to remain available until
September 30, 1999.
Of the amount made available under this heading, $500,000
shall be made available for a contract with the National
Academy of Public Administration to evaluate the Secretary's
efforts to implement needed management systems and processes.
Fair Housing and Equal Opportunity
fair housing activities
For contracts, grants, and other assistance, not otherwise
provided for, as authorized by title VIII of the Civil Rights
Act of 1968, as amended by the Fair Housing Amendments Act of
1988, and section 561 of the Housing and Community Development
Act of 1987, as amended, $30,000,000, to remain available until
September 30, 1999, of which $15,000,000 shall be to carry out
activities pursuant to such section 561. No funds made
available under this heading shall be used to lobby the
executive or legislative branches of the Federal government in
connection with a specific contract, grant or loan.
Management and Administration
salaries and expenses
(including transfer of funds)
For necessary administrative and non-administrative
expenses of the Department of Housing and Urban Development,
not otherwise provided for, including not to exceed $7,000 for
official reception and representation expenses, $1,000,826,000,
of which $544,443,000 shall be provided from the various funds
of the Federal Housing Administration, $9,383,000 shall be
provided from funds of the Government National Mortgage
Association, and $1,000,000 shall be provided from the
``Community Development Grants Program'' account.
office of inspector general
(including transfer of funds)
For necessary expenses of the Office of Inspector General
in carrying out the Inspector General Act of 1978, as amended,
$66,850,000, of which $16,283,000 shall be provided from the
various funds of the Federal Housing Administration and
$10,000,000 shall be transferred from the amount earmarked for
Operation Safe Home in the ``Drug Elimination Grants for Low
Income Housing'' account.
Office of Federal Housing Enterprise Oversight
salaries and expenses
(including transfer of funds)
For carrying out the Federal Housing Enterprise Financial
Safety and Soundness Act of 1992, $16,000,000, to remain
available until expended, to be derived from the Federal
Housing Enterprise Oversight Fund: Provided, That not to exceed
such amount shall be available from the General Fund of the
Treasury to the extent necessary to incur obligations and make
expenditures pending the receipt of collections to the Fund:
Provided further, That the General Fund amount shall be reduced
as collections are received during the fiscal year so as to
result in a final appropriation from the General Fund estimated
at not more than $0.
administrative provisions
Sec. 201. Extenders. (a) One-for-One Replacement of Public
Housing.--Section 1002(d) of Public Law 104-19 is amended by
striking ``1997'' and inserting ``1998''.
(b) Streamlining Section 8 Tenant-Based Assistance.--
Section 203(d) of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1996, is amended by striking ``fiscal years
1996 and 1997'' and inserting ``fiscal years 1996, 1997, and
1998''.
(c) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the
United States Housing Act of 1937 is amended--
(1) in the third sentence, by striking ``fiscal
year 1997'' and inserting ``fiscal years 1997 and
1998''; and
(2) in the last sentence, by striking ``fiscal year
1997'' and inserting ``fiscal years 1997 and 1998''.
(d) Public and Assisted Housing Rents, Income Adjustments
and Preferences.--
(1) Section 402(a) of The Balanced Budget
Downpayment Act, I is amended by striking ``fiscal year
1997'' and inserting in lieu thereof ``fiscal years
1997 and 1998''.
(2) Section 402(f) of The Balanced Budget
Downpayment Act, I is amended by striking ``fiscal
years 1996 and 1997'' and inserting in lieu thereof
``fiscal years 1996, 1997, and 1998''.
Sec. 202. Delay Reissuance of Vouchers and Certificates.--
Section 403(c) of The Balanced Budget Downpayment Act, I is
amended--
(1) by striking ``fiscal years 1996 and 1997'' and
inserting ``fiscal years 1996, 1997, and 1998'';
(2) by striking ``1996 and October'' and inserting
``1996, October''; and
(3) by inserting before the semicolon the
following: ``and October 1, 1998 for assistance made
available during fiscal year 1998''.
Sec. 203. Waiver.--The part of the HUD 1996 Community
Development Block Grant to the State of Illinois which is
administered by the State of Illinois Department of Commerce
and Community Affairs (grant number B-96-DC-170001) and which,
in turn, was granted by the Illinois Department of Commerce and
Community Affairs to the city of Oglesby, Illinois, located in
LaSalle County, Illinois (State of Illinois Department of
Commerce and Community Affairs grant number 96-24104), for the
purpose of providing infrastructure for a warehouse in Oglesby,
Illinois, is exempt from the provisions of section 104(g)(2),
(g)(3), and (g)(4) of title I of the Housing and Community
Development Act of 1974 as amended.
Sec. 204. Financing Adjustment Factors.--Fifty percent of
the amounts of budget authority, or in lieu thereof 50 percent
of the cash amounts associated with such budget authority, that
are recaptured from projects described in section 1012(a) of
the Stewart B. McKinney Homeless Assistance Amendments Act of
1988 (Public Law 100-628, 102 Stat. 3224, 3268) shall be
rescinded, or in the case of cash, shall be remitted to the
Treasury, and such amounts of budget authority or cash
recaptured and not rescinded or remitted to the Treasury shall
be used by State housing finance agencies or local governments
or local housing agencies with projects approved by the
Secretary of Housing and Urban Development for which settlement
occurred after January 1, 1992, in accordance with such
section. Notwithstanding the previous sentence, the Secretary
may award up to 15 percent of the budget authority or cash
recaptured and not rescinded or remitted to the Treasury to
provide project owners with incentives to refinance their
project at a lower interest rate.
Sec. 205. Annual Adjustment Factors.--Section 8(c)(2)(A) of
the United States Housing Act of 1937, as amended by section
201 of this title, is further amended by inserting the
following new sentences at the end: ``In establishing annual
adjustment factors for units in new construction and
substantial rehabilitation projects, the Secretary shall take
into account the fact that debt service is a fixed expense. The
immediately foregoing sentence shall be effective only during
fiscal year 1998.''.
Sec. 206. Community Development Block Grant.--
Notwithstanding any other provision of law, the $7,100,000
appropriated for an industrial park at 18th Street and Indiana
Avenue shall be made available by the Secretary instead to 18th
and Vine for rehabilitation and infrastructure development
associated with the ``Negro Leagues Baseball Museum'' and the
jazz museum.
Sec. 207. Fair Housing and Free Speech.--None of the
amounts made available under this Act may be used during fiscal
year 1998 to investigate or prosecute under the Fair Housing
Act any otherwise lawful activity engaged in by one or more
persons, including the filing or maintaining of a nonfrivolous
legal action, that is engaged in solely for the purpose of
achieving or preventing action by a government official or
entity, or a court of competent jurisdiction.
Sec. 208. Requirement for HUD to Maintain Public Notice and
Comment Rulemaking.--Notwithstanding any other provision of
law, for fiscal year 1998 and for all fiscal years thereafter,
the Secretary of Housing and Urban Development shall maintain
all current requirements under part 10 of the Department of
Housing and Urban Development regulations (24 CFR part 10) with
respect to the Department's policies and procedures for the
promulgation and issuance of rules, including the use of public
participation in the rulemaking process.
Sec. 209. Brownfields as Eligible CDBG Activity.--During
fiscal year 1998, States and entitlement communities may use
funds allocated under the community development block grants
program under title I of the Housing and Community Development
Act of 1974 for environmental cleanup and economic development
activities related to Brownfields projects in conjunction with
the appropriate environmental regulatory agencies, as if such
activities were eligible under section 105(a) of such Act.
Sec. 210. Partial Payment of Claims on Health Care
Facilities.--Section 541(a) of the National Housing Act is
amended--
(1) in the section heading, by adding ``and health
care facilities'' at the end; and
(2) in subsection (a)--
(A) by inserting ``or a health care
facility (including a nursing home,
intermediate care facility, or board and care
home (as those terms are defined in section 232
of this Act), a hospital (as that term is
defined in section 242 of this Act), or a group
practice facility (as that term is defined in
section 1106 of this Act))'' after ``1978'';
and
(B) by inserting ``or for keeping the
health care facility operational to serve
community needs,'' after ``character of the
project,''.
Sec. 211. Calculation of Downpayment.--Section 203(b) of
the National Housing Act is amended by striking ``fiscal year
1997'' in paragraph (10)(A) and inserting in lieu thereof
``fiscal years 1997 and 1998''.
Sec. 212. HOPE VI NOFA.--Notwithstanding any other
provision of law, including the July 22, 1996 Notice of Funding
Availability (61 Fed. Reg. 38024), the demolition of units at
developments funded under the Notice of Funding Availability
shall be at the option of the New York City Housing Authority
and the assistance awarded shall be allocated by the public
housing agency among other eligible activities under the HOPE
VI program and without the development costs limitations of the
Notice, provided that the public housing agency shall not
exceed the total cost limitations for the public housing
agency, as provided by the Department of Housing and Urban
Development.
Sec. 213. Enhanced Disposition Authority.--Section 204 of
the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1997,
is amended by inserting after ``owned by the Secretary'' the
following: ``, including, for fiscal years 1997 and 1998, the
provision of grants and loans from the General Insurance Fund
(12 U.S.C. 1735c) for the necessary costs of rehabilitation or
demolition,''.
Sec. 214. Home Program Formula.--The first sentence of
section 217(b)(3) of the Cranston-Gonzalez National Affordable
Housing Act is amended by striking ``only those jurisdictions
that are allocated an amount of $500,000 or greater shall
receive an allocation'' and inserting in lieu thereof the
following: ``jurisdictions that are allocated an amount of
$500,000or more, and participating jurisdictions (other than
consortia that fail to renew the membership of all of their member
jurisdictions) that are allocated an amount less than $500,000, shall
receive an allocation''.
Sec. 215. HUD Rent Reform.--Notwithstanding any other
provision of law, the Secretary of Housing and Urban
Development may provide tenant-based assistance to eligible
tenants of a project insured under either sections 221(d)(3) or
236 of the National Housing Act in the same manner as if the
owner had prepaid the insured mortgage to the extent necessary
to minimize any rent increases or to prevent displacement of
low-income tenants in accordance with a transaction approved by
the Secretary provided that the rents are no higher than the
published section 8 fair market rents, as of the date of
enactment, during the tenants' occupancy of the property.
Sec. 216. Nursing Home Lease Terms.--Section 232(b)(4)(B)
of the National Housing Act is amended by striking ``fifty
years from the date the mortgage was executed'' and inserting
``ten years to run beyond the maturity date of the mortgage''.
Sec. 217. Housing Opportunities for Persons With AIDS
Grants.--(a) Eligibility.--Notwithstanding section 854(c)(1)(A)
of the AIDS Housing Opportunity Act (42 U.S.C. 12903(c)(1)(A)),
from any amounts made available under this title for fiscal
year 1998 that are allocated under such section, the Secretary
of Housing and Urban Development shall allocate and make a
grant, in the amount determined under subsection (b), for any
State that--
(1) received an allocation for fiscal year 1997
under clause (ii) of such section;
(2) is not otherwise eligible for an allocation for
fiscal year 1998 under such clause (ii) because the
State does not have the number of cases of acquired
immunodeficiency syndrome required under such clause;
and
(3) would meet such requirement if the cases in the
metropolitan statistical area for any city within the
State, which city was not eligible for an allocation
for fiscal year 1997 under clause (i) of such section
but is eligible for an allocation for fiscal year 1998
under such clause, were considered to be cases outside
of metropolitan statistical areas described in clause
(i) of such section.
(b) Amount.--The amount of the allocation and grant for any
State described in subsection (a) shall be the amount that is
equal to the lesser of--
(1) the difference between--
(A) the total amount allocated for such
State under section 854(c)(1)(A)(ii) of the
AIDS Housing Opportunity Act for fiscal year
1997; and
(B) the total amount allocated for the city
described in subsection (a)(3) of this section
under section 854(c)(1)(A)(i) of such Act for
fiscal year 1998 (from amounts made available
under this title); and
(2) $300,000.
Sec. 218. Debt Forgiveness.--The Secretary of Housing and
Urban Development shall cancel the indebtedness of the Village
of Robbins, Illinois, relating to loans under the
Reconstruction Finance Corporation and refinanced under the
Public Facility Loan program (loan numbers ILL-11-RFC-0029 and
ILL-11-PFL0111). The Village is hereby relieved of all
liability to the Federal government for the outstanding
principal balance on such loans, for the amount of accrued
interest on such loans, and for any fees and charges payable in
connection with such loans.
TITLE III--INDEPENDENT AGENCIES
American Battle Monuments Commission
salaries and expenses
For necessary expenses, not otherwise provided for, of the
American Battle Monuments Commission, including the acquisition
of land or interest in land in foreign countries; purchases and
repair of uniforms for caretakers of national cemeteries and
monuments outside of the United States and its territories and
possessions; rent of office and garage space in foreign
countries; purchase (one for replacement only) and hire of
passenger motor vehicles; and insurance of official motor
vehicles in foreign countries, when required by law of such
countries; $26,897,000, to remain available until expended:
Provided, That where station allowance has been authorized by
the Department of the Army for officers of the Army serving the
Army at certain foreign stations, the same allowance shall be
authorized for officers of the Armed Forces assigned to the
Commission while serving at the same foreign stations, and this
appropriation is hereby made available for the payment of such
allowance: Provided further, That when traveling on business of
the Commission, officers of the Armed Forces serving as members
or as Secretary of the Commission may be reimbursed for
expenses as provided for civilian members of the Commission:
Provided further, That the Commission shall reimburse other
Government agencies, including the Armed Forces, for salary,
pay, and allowances of personnel assigned to it.
Chemical Safety and Hazard Investigation Board
salaries and expenses
For necessary expenses in carrying out activities pursuant
to section 112(r)(6) of the Clean Air Act, including hire of
passenger vehicles, and for services authorized by 5 U.S.C.
3109, but at rates for individuals not to exceed the per diem
equivalent to the maximum rate payable for senior level
positions under 5 U.S.C. 5376, $4,000,000.
Department of the Treasury
Community Development Financial Institutions
community development financial institutions fund program account
For grants, loans, and technical assistance to qualifying
community development lenders, and administrative expenses of
the Fund, including services authorized by 5 U.S.C. 3109, but
at rates for individuals not to exceed the per diem rate
equivalent to the rate for ES-3, $80,000,000, to remain
available until September 30, 1999, of which $12,000,000 may be
used for the cost of direct loans, and up to $1,000,000 may be
used for administrative expenses to carry out the direct loan
program: Provided, That the cost of direct loans, including the
cost of modifying such loans, shall be as defined in section
502 of the Congressional Budget Act of 1974: Provided further,
That these funds are available to subsidize gross obligations
for the principal amount of direct loans not to exceed
$32,000,000: Provided further, That not more than $25,000,000
of the funds made available under this heading may be used for
programs and activities authorized in section 114 of the
Community Development Banking and Financial Institutions Act of
1994.
Consumer Product Safety Commission
salaries and expenses
For necessary expenses of the Consumer Product Safety
Commission, including hire of passenger motor vehicles,
services as authorized by 5 U.S.C. 3109, but at rates for
individuals not to exceed the per diem rate equivalent to the
maximum rate payable under 5 U.S.C. 5376, purchase of nominal
awards to recognize non-Federal officials' contributions to
Commission activities, and not to exceed $500 for official
reception and representation expenses, $45,000,000.
Corporation for National and Community Service
national and community service programs
operating expenses
(including transfer of funds)
For necessary expenses for the Corporation for National and
Community Service (referred to in the matter under this heading
as the ``Corporation'') in carrying out programs, activities,
and initiatives under the National and Community Service Act of
1990 (referred to in the matter under this heading as the
``Act'') (42 U.S.C. 12501 et seq.), $425,500,000, to remain
available until September 30, 1999: Provided, That not more
than $27,000,000 shall be available for administrative expenses
authorized under section 501(a)(4) of the Act (42 U.S.C.
12671(a)(4)): Provided further, That not more than $2,500 shall
be for official reception and representation expenses: Provided
further, That not more than $70,000,000, to remain available
without fiscal year limitation, shall be transferred to the
National Service Trust account for educational awards
authorized under subtitle D of title I of the Act (42 U.S.C.
12601 et seq.), of which not to exceed $5,000,000 shall be
available for national service scholarships for high school
students performing community service: Provided further, That
not more than $227,000,000 of the amount provided under this
heading shall be available for grants under the National
Service Trust program authorized under subtitle C of title I of
the Act (42 U.S.C. 12571 et seq.) (relating to activities
including the Americorps program), of which not more than
$40,000,000 may be used to administer, reimburse, or support
any national service program authorized under section 121(d)(2)
of such Act (42 U.S.C. 12581(d)(2)): Provided further, That not
more than $5,500,000 of the funds made available under this
heading shall be made available for the Points of Light
Foundation for activities authorized under title III of the Act
(42 U.S.C. 12661 et seq.): Provided further, That no funds
shall be available for national service programs run by Federal
agencies authorized under section 121(b) of such Act (42 U.S.C.
12571(b)): Provided further, That to the maximum extent
feasible, funds appropriated under subtitle C of title I of the
Act shall be provided in a manner that is consistent with the
recommendations of peer review panels in order to ensure that
priority is given to programs that demonstrate quality,
innovation, replicability, and sustainability: Provided
further, That not more than $18,000,000 of the funds made
available under this heading shall be available for the
Civilian Community Corps authorized under subtitle E of title I
of the Act (42 U.S.C. 12611 et seq.): Provided further, That
not more than $43,000,000 shall be available for school-based
and community-based service-learning programs authorized under
subtitle B of title I of the Act (42 U.S.C. 12521 et seq.):
Provided further, That not more than $30,000,000 shall be
available for quality and innovation activities authorized
under subtitle H of title I of the Act (42 U.S.C. 12853 et
seq.): Provided further, That not more than $5,000,000 shall be
available for audits and other evaluations authorized under
section 179 of the Act (42 U.S.C. 12639): Provided further,
That to the maximum extent practicable, the Corporation shall
increase significantly the level of matching funds and in-kind
contributions provided by the private sector, shall expand
significantly the number of educational awards provided under
subtitle D of title I, and shall reduce the total Federal costs
per participant in all programs.
office of inspector general
For necessary expenses of the Office of Inspector General
in carrying out the Inspector General Act of 1978, as amended,
$3,000,000.
Court of Veterans Appeals
salaries and expenses
For necessary expenses for the operation of the United
States Court of Veterans Appeals as authorized by 38 U.S.C.
sections 7251-7298, $9,319,000, of which $790,000, shall be
available for the purpose of providing financial assistance as
described, and in accordance withthe process and reporting
procedures set fourth, under this heading in Public Law 102-229.
Department of Defense--Civil
Cemeterial Expenses, Army
salaries and expenses
For necessary expenses, as authorized by law, for
maintenance, operation, and improvement of Arlington National
Cemetery and Soldiers' and Airmen's Home National Cemetery,
including the purchase of two passenger motor vehicles for
replacement only, and not to exceed $1,000 for official
reception and representation expenses, $11,815,000, to remain
available until expended.
Environmental Protection Agency
science and technology
(including transfer of funds)
For science and technology, including research and
development activities, which shall include research and
development activities under the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (CERCLA), as
amended; necessary expenses for personnel and related costs and
travel expenses, including uniforms, or allowances therefore,
as authorized by 5 U.S.C. 5901-5902; services as authorized by
5 U.S.C. 3109, but at rates for individuals not to exceed the
per diem rate equivalent to the rate for GS-18; procurement of
laboratory equipment and supplies; other operating expenses in
support of research and development; construction, alteration,
repair, rehabilitation, and renovation of facilities, not to
exceed $75,000 per project, $631,000,000, which shall remain
available until September 30, 1999: Provided, That $49,600,000
of the funds appropriated under this heading shall be to
conduct and administer a comprehensive, peer-reviewed, near-
and long-term particulate matter research program in accordance
with the terms and conditions set forth for such research
program in the conference report and joint explanatory
statement of the committee of conference accompanying this Act
(H.R. 2158): Provided further, That no later than 30 days
following enactment of this Act, the Environmental Protection
Agency shall enter into a contract or cooperative agreement
with the National Academy of Sciences to develop a
comprehensive, prioritized, near- and long-term particulate
matter research program and monitoring plan in accordance with
the terms and conditions set forth in the conference report and
joint explanatory statement of the committee of conference
accompanying this Act (H.R. 2158).
environmental programs and management
For environmental programs and management, including
necessary expenses, not otherwise provided for, for personnel
and related costs and travel expenses, including uniforms, or
allowances therefore, as authorized by 5 U.S.C. 5901-5902;
services as authorized by 5 U.S.C. 3109, but at rates for
individuals not to exceed the per diem rate equivalent to the
rate for GS-18; hire of passenger motor vehicles; hire,
maintenance, and operation of aircraft; purchase of reprints;
library memberships in societies or associations which issue
publications to members only or at a price to members lower
than to subscribers who are not members; construction,
alteration, repair, rehabilitation, and renovation of
facilities, not to exceed $75,000 per project; and not to
exceed $6,000 for official reception and representation
expenses, $1,801,000,000, which shall remain available until
September 30, 1999.
office of inspector general
For necessary expenses of the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
1978, as amended, and for construction, alteration, repair,
rehabilitation, and renovation of facilities, not to exceed
$75,000 per project, $28,501,000, to remain available until
September 30, 1999.
buildings and facilities
For construction, repair, improvement, extension,
alteration, and purchase of fixed equipment or facilities of,
or for use by, the Environmental Protection Agency,
$109,420,000, to remain available until expended: Provided,
That the Environmental Protection Agency is authorized to
establish and construct a consolidated researchfacility at
Research Triangle Park, North Carolina, at a maximum total construction
cost of $272,700,000, and to obligate such monies as are made available
by this Act for this purpose.
hazardous substance superfund
(including transfer of funds)
For necessary expenses to carry out the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980
(CERCLA), as amended, including sections 111 (c)(3), (c)(5),
(c)(6), and (e)(4) (42 U.S.C. 9611), and for construction,
alteration, repair, rehabilitation, and renovation of
facilities, not to exceed $75,000 per project; not to exceed
$2,150,000,000 (of which $100,000,000 shall not become
available until September 1, 1998), to remain available until
expended, consisting of $1,900,000,000, as authorized by
section 517(a) of the Superfund Amendments and Reauthorization
Act of 1986 (SARA), as amended by Public Law 101-508, and
$250,000,000 as a payment from general revenues to the
Hazardous Substance Superfund as authorized by section 517(b)
of SARA, as amended by Public Law 101-508: Provided, That funds
appropriated under this heading may be allocated to other
Federal agencies in accordance with section 111(a) of CERCLA:
Provided further, That of the funds appropriated under this
heading, $650,000,000 shall not become available for obligation
until October 1, 1998, and, further, shall be available for
obligation only upon enactment by May 15, 1998, of specific
legislation which reauthorizes the Superfund program: Provided
further, That $11,641,000 of the funds appropriated under this
heading shall be transferred to the ``Office of Inspector
General'' appropriation to remain available until September 30,
1999: Provided further, That notwithstanding section 111(m) of
CERCLA or any other provision of law, $74,000,000 of the funds
appropriated under this heading shall be available to the
Agency for Toxic Substances and Disease Registry to carry out
activities described in sections 104(i), 111(c)(4), and
111(c)(14) of CERCLA and section 118(f) of SARA: Provided
further, That $35,000,000 of the funds appropriated under this
heading shall be transferred to the ``Science and Technology''
appropriation to remain available until September 30, 1999:
Provided further, That none of the funds appropriated under
this heading shall be used for Brownfields revolving loan funds
unless specifically authorized by subsequent legislation:
Provided further, That none of the funds appropriated under
this heading shall be available for the Agency for Toxic
Substances and Disease Registry to issue in excess of 40
toxicological profiles pursuant to section 104(i) of CERCLA
during fiscal year 1998.
leaking underground storage tank program
(including transfer of funds)
For necessary expenses to carry out leaking underground
storage tank cleanup activities authorized by section 205 of
the Superfund Amendments and Reauthorization Act of 1986, and
for construction, alteration, repair, rehabilitation, and
renovation of facilities, not to exceed $75,000 per project,
$65,000,000, to remain available until expended: Provided, That
no more than $7,500,000 shall be available for administrative
expenses.
oil spill response
(including transfer of funds)
For expenses necessary to carry out the Environmental
Protection Agency's responsibilities under the Oil Pollution
Act of 1990, $15,000,000, to be derived from the Oil Spill
Liability trust fund, and to remain available until expended:
Provided, That not more than $9,000,000 of these funds shall be
available for administrative expenses.
state and tribal assistance grants
For environmental programs and infrastructure assistance,
including capitalization grants for State revolving funds and
performance partnership grants, $3,213,125,000, to remain
available until expended, of which $1,350,000,000 shall be for
making capitalization grants for the Clean Water State
Revolving Funds undertitle VI of the Federal Water Pollution
Control Act, as amended, and $725,000,000 shall be for capitalization
grants for the Drinking Water State Revolving Funds under section 1452
of the Safe Drinking Water Act, as amended; $75,000,000 for
architectural, engineering, planning, design, construction and related
activities in connection with the construction of high priority water
and wastewater facilities in the area of the United States-Mexico
Border, after consultation with the appropriate border commission;
$50,000,000 for grants to the State of Texas which shall be matched by
state funds from state resources at 20 percent of the federal
appropriation for the purpose of improving water and wastewater
treatment for colonias; $15,000,000 for grants to the State of Alaska
to address drinking water and wastewater infrastructure needs of rural
and Alaska Native Villages as provided by section 303 of Public Law
104-182; $253,125,000 for making grants for the construction of
wastewater and water treatment facilities and groundwater protection
infrastructure in accordance with the terms and conditions specified
for such grants in the conference report and joint explanatory
statement of the committee of conference accompanying this Act (H.R.
2158); and $745,000,000 for grants to States, federally recognized
tribes, and air pollution control agencies for multi-media or single
media pollution prevention, control and abatement and related
activities pursuant to the provisions set forth under this heading in
Public Law 104-134, provided that eligible recipients of these funds
and the funds made available for this purpose since fiscal year 1996
and hereafter include States, federally recognized tribes, interstate
agencies, tribal consortia, and air pollution control agencies, as
provided in authorizing statutes, subject to such terms and conditions
as the Administrator shall establish, and for making grants under
section 103 of the Clean Air Act for particulate matter monitoring and
data collection activities: Provided, That, consistent with section
1452(g) of the Safe Drinking Water Act (42 U.S.C. 300j-12(g)), section
302 of the Safe Drinking Water Act Amendments of 1996 (Public Law 104-
182) and the accompanying joint explanatory statement of the committee
on conference (H. Rept. No. 104-741 to accompany S. 1316, the Safe
Drinking Water Act Amendments of 1996), and notwithstanding any other
provision of law, States may combine the assets of State Revolving
Funds (SRFs) established under section 1452 of the Safe Drinking Water
Act, as amended, and title VI of the Federal Water Pollution Control
Act, as amended, as security for bond issues to enhance the lending
capacity of one or both SRFs, but not to acquire the state match for
either program, providedthat revenues from the bonds are allocated to
the purposes of the Safe Drinking Water Act and the Federal Water
Pollution Control Act in the same portion as the funds are used as
security for the bonds: Provided further, That, hereafter from funds
appropriated under this heading, the Administrator is authorized to
make grants to federally recognized Indian governments for the
development of multi-media environmental programs: Provided further,
That, hereafter, the funds available under this heading for grants to
States, federally recognized tribes, and air pollution control agencies
for multi-media or single media pollution prevention, control and
abatement and related activities may also be used for the direct
implementation by the Federal Government of a program required by law
in the absence of an acceptable State or tribal program: Provided
further, That notwithstanding any other provision of law, in the case
of a publicly owned treatment works in the District of Columbia, the
Federal share of grants awarded under title II of the Federal Water
Pollution Control Act, beginning October 1, 1997, and continuing
through September 30, 1999, shall be 80 percent of the cost of
construction, and all grants made to such publicly owned treatment
works in the District of Columbia may include an advance of allowance
under section 201(l)(2): Provided further, That, notwithstanding any
other provision of law, the Administrator is authorized to make a grant
of $4,326,000 under title II of the Federal Water Pollution Control
Act, as amended, from funds appropriated in prior years under section
205 of the Act for the State of Florida and available due to
deobligation, to the appropriate instrumentality for wastewater
treatment works in Monroe County, Florida.
working capital fund
Under this heading in Public Law 104-204, delete the
following: the phrases, ``franchise fund pilot to be known as
the''; ``as authorized by section 403 of Public Law 103-356,'';
and ``as provided in such section''; and the final proviso.
After the phrase, ``to be available'', insert ``without fiscal
year limitation''.
Executive Office of the President
office of science and technology policy
For necessary expenses of the Office of Science and
Technology Policy, in carrying out the purposes of the National
Science and Technology Policy, Organization, and Priorities Act
of 1976 (42 U.S.C. 6601 and 6671), hire of passenger motor
vehicles, and services as authorized by 5 U.S.C. 3109, not to
exceed $2,500 for official reception and representation
expenses, and rental of conference rooms in the District of
Columbia, $4,932,000.
council on environmental quality and office of environmental quality
For necessary expenses to continue functions assigned to
the Council on Environmental Quality and Office of
Environmental Quality pursuant to the National Environmental
Policy Act of 1969, the Environmental Quality Improvement Act
of 1970, and Reorganization Plan No. 1 of 1977, $2,500,000:
Provided, That, notwithstanding any other provision of law, no
funds other than those appropriated under this heading, shall
be used for or by the Council on Environmental Quality and
Office of Environmental Quality: Provided further, That
notwithstanding section 202 of the National Environmental
Policy Act of 1970, the Council shall consist of one member,
appointed by the President, by and with the advice and consent
of the Senate, serving as Chairman and exercising all powers,
functions, and duties of the Council.
Unanticipated Needs
For expenses necessary to enable the President to meet
unanticipated needs, in furtherance of the national interest,
security, or defense which may arise at home or abroad during
the current fiscal year; $1,000,000.
Federal Deposit Insurance Corporation
office of inspector general
(including transfer of funds)
For necessary expenses of the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
1978, as amended, $34,365,000, to be derived from the Bank
Insurance Fund, the Savings Association Insurance Fund, and the
FSLIC Resolution Fund.
Federal Emergency Management Agency
disaster relief
For necessary expenses in carrying out the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.), $320,000,000, and, notwithstanding 42
U.S.C. 5203, to remain available until expended.
disaster assistance direct loan program account
For the cost of direct loans, $1,495,000, as authorized by
section 319 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act: Provided, That such costs, including
the cost of modifying such loans, shall be as defined in
section 502 of the Congressional Budget Act of 1974, as
amended: Provided further, That these funds are available to
subsidize gross obligations for the principal amount of direct
loans not to exceed $25,000,000.
In addition, for administrative expenses to carry out the
direct loan program, $341,000.
salaries and expenses
For necessary expenses, not otherwise provided for,
including hire and purchase of motor vehicles as authorized by
31 U.S.C. 1343; uniforms, or allowances therefor, as authorized
by 5 U.S.C. 5901-5902; services as authorized by 5 U.S.C. 3109,
but at rates for individuals not to exceed the per diem rate
equivalent to the rate for GS-18; expenses of attendance of
cooperating officials and individuals at meetings concerned
with the work of emergency preparedness; transportation in
connection with the continuity of Government programs to the
same extent and in the same manner as permitted the Secretary
of a Military Department under 10 U.S.C. 2632; and not to
exceed $2,500 for official reception and representation
expenses, $171,773,000.
office of inspector general
For necessary expenses of the Office of Inspector General
in carrying out the Inspector General Act of 1978, as amended,
$4,803,000.
emergency management planning and assistance
For necessary expenses, not otherwise provided for, to
carry out activities under the National Flood Insurance Act of
1968, as amended, and the Flood Disaster Protection Act of
1973, as amended (42 U.S.C. 4001 et seq.), the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.), the Earthquake Hazards Reduction Act of
1977, as amended (42 U.S.C. 7701 et seq.), the Federal Fire
Prevention and Control Act of 1974, as amended (15 U.S.C. 2201
et seq.), the Defense Production Act of 1950, as amended (50
U.S.C. App. 2061 et seq.), sections 107 and 303 of the National
Security Act of 1947, as amended (50 U.S.C. 404-405), and
Reorganization Plan No. 3 of 1978, $243,546,000: Provided, That
for purposes of pre-disaster mitigation pursuant to 42 U.S.C.
5131 (b) and (c) and 42 U.S.C. 5196 (e) and (i), $30,000,000 of
the funds made available under this heading shall be available
until expended for project grants: Provided further, That the
Director of the Federal Emergency Management Agency shall make
a grant for $1,500,000 to resolve issues under the Uniform
Relocation Assistance and Real Property Acquisition Policies
Act of 1970, Public Law 91-646, involving the City of Jackson,
Mississippi.
emergency food and shelter program
To carry out an emergency food and shelter program pursuant
to title III of Public Law 100-77, as amended, $100,000,000:
Provided, That total administrative costs shall not exceed
three and one-half percent of the total appropriation.
national flood insurance fund
(including transfer of funds)
For activities under the National Flood Insurance Act of
1968, the Flood Disaster Protection Act of 1973, and the
National Flood Insurance Reform Act of 1994, not to exceed
$21,610,000 for salaries and expenses associated with flood
mitigation and flood insurance operations, and not to exceed
$78,464,000 for flood mitigation, including up to $20,000,000
for expenses under section 1366 of the National Flood Insurance
Act, which amount shall be available for transfer to the
National Flood Mitigation Fund until September 30, 1999. In
fiscal year 1998, no funds in excess of (1) $47,000,000 for
operating expenses, (2) $375,165,000 for agents' commissions
and taxes, and (3) $50,000,000 for interest on Treasury
borrowings shall be available from the National Flood Insurance
Fund without prior notice to the Committees on Appropriations.
For fiscal year 1998, flood insurance rates shall not exceed
the level authorized by the National Flood Insurance Reform Act
of 1994.
Section 1309(a)(2) of the National Flood Insurance Act (42
U.S.C. 4016(a)(2)), as amended by Public Law 104-208, is
further amended by striking the date ``1997'' and inserting in
lieu thereof the date ``1998''.
Section 1319 of the National Flood Insurance Act of 1968,
as amended (42 U.S.C. 4026), is amended by striking ``October
23, 1997'' and inserting ``September 30, 1998''.
Section 1336 of the National Flood Insurance Act of 1968,
as amended (42 U.S.C. 4056), is amended by striking ``October
23, 1997'' and inserting ``September 30, 1998''.
The first sentence of section 1376(c) of the National Flood
Insurance Act of 1968, as amended (42 U.S.C. 4127(c)), is
amended by striking all after ``to be appropriated'' and
inserting ``such sums as may be necessary through September 30,
1998, for studies under this title.''.
administrative provision
The Director of the Federal Emergency Management Agency
shall promulgate through rulemaking a methodology for
assessment and collection of fees to be assessed and collected
beginning in fiscal year 1998 applicable to persons subject to
the Federal Emergency Management Agency's radiological
emergency preparedness regulations. The aggregate charges
assessed pursuant to this section during fiscal year 1998 shall
approximate, but not be less than, 100 per centum of the
amounts anticipated by the Federal Emergency Management Agency
to be obligated for its radiological emergency preparedness
program for such fiscal year. The methodology for assessment
and collection of fees shall be fair and equitable, and shall
reflect the full amount of costs of providing radiological
emergency planning, preparedness, response and associated
services. Such fees shall be assessed in a manner that reflects
the use of agency resources for classes of regulated persons
and the administrative costs of collecting such fees. Fees
received pursuant to this section shall be deposited in the
general fund of the Treasury as offsetting receipts. Assessment
and collection of such fees are only authorized during fiscal
year 1998.
General Services Administration
consumer information center fund
For necessary expenses of the Consumer Information Center,
including services authorized by 5 U.S.C. 3109, $2,419,000, to
be deposited into the Consumer Information Center Fund:
Provided, That the appropriations, revenues and collections
deposited into the fund shall be available for necessary
expenses of Consumer Information Center activities in the
aggregate amount of $7,500,000. Appropriations, revenues, and
collections accruing to this fund during fiscal year 1998 in
excess of $7,500,000 shall remain in the fund and shall not be
available for expenditure except as authorized in
appropriations Acts: Provided further, That notwithstanding any
other provision of law, the Consumer Information Center may
accept and deposit to this account, during fiscal year 1998 and
hereafter, gifts for the purpose of defraying its costs of
printing, publishing, and distributing consumer information and
educational materials and undertaking other consumer
information activities; may expend those gifts for those
purposes, in addition to amounts appropriated or otherwise made
available; and the balance shall remain available for
expenditure for such purpose.
National Aeronautics and Space Administration
human space flight
For necessary expenses, not otherwise provided for, in the
conduct and support of human space flight research and
development activities, including research, development,
operations, and services; maintenance; construction of
facilities including repair, rehabilitation, and modification
of real and personal property, and acquisition or condemnation
of real property, as authorized by law; space flight,
spacecraft control and communications activities including
operations, production, and services; and purchase, lease,
charter, maintenance and operation of mission and
administrative aircraft, $5,506,500,000, to remain available
until September 30, 1999: Provided, That of the $2,351,300,000
made available under this heading for Space Station activities,
only $1,500,000,000 shall be available before March 31, 1998.
science, aeronautics and technology
For necessary expenses, not otherwise provided for, in the
conduct and support of science, aeronautics and technology
research and development activities, including research,
development, operations, and services; maintenance;
construction of facilities including repair, rehabilitation,
and modification of real and personal property, and acquisition
or condemnation of real property, as authorized by law; space
flight, spacecraft control and communications activities
including operations, production, and services; and purchase,
lease, charter, maintenance and operation of mission and
administrative aircraft, $5,690,000,000, to remain available
until September 30, 1999.
mission support
For necessary expenses, not otherwise provided for, in
carrying out mission support for human space flight programs
and science, aeronautical, and technology programs, including
research operations and support; space communications
activities including operations, production and services;
maintenance; construction of facilities including repair,
rehabilitation, and modification of facilities, minor
construction of new facilities and additions to existing
facilities, facility planning and design, environmental
compliance and restoration, and acquisition or condemnation of
real property, as authorized by law; program management;
personnel and related costs, including uniforms or allowances
therefor, as authorized by 5 U.S.C. 5901-5902; travel expenses;
purchase, lease, charter, maintenance, and operation of mission
and administrative aircraft; not to exceed $35,000 for official
reception and representation expenses; and purchase (not to
exceed 33 for replacement only) and hire of passenger motor
vehicles; $2,433,200,000, to remain available until September
30, 1999.
office of inspector general
For necessary expenses of the Office of Inspector General
in carrying out the Inspector General Act of 1978, as amended,
$18,300,000.
administrative provisions
Notwithstanding the limitation on the availability of funds
appropriated for ``Human space flight'', ``Science, aeronautics
and technology'', or ``Mission support'' by this appropriations
Act, when any activity has been initiated by the incurrence of
obligations for construction of facilities as authorized by
law, such amount available for such activity shall remain
available until expended. This provision does not apply to the
amounts appropriated in ``Mission support'' pursuant to the
authorization for repair, rehabilitation and modification of
facilities, minor construction of new facilities and additions
to existing facilities, and facility planning and design.
Notwithstanding the limitation on the availability of funds
appropriated for ``Human space flight'', ``Science, aeronautics
and technology'', or ``Mission support'' by this appropriations
Act, the amounts appropriated for construction of facilities
shall remain available until September 30, 2000.
Notwithstanding the limitation on the availability of funds
appropriated for ``Mission support'' and ``Office of Inspector
General'', amounts made available by this Act for personnel and
related costs and travel expenses of the National Aeronautics
and Space Administration shall remain available until September
30, 1998 and may be used to enter into contracts for training,
investigations, costs associated with personnel relocation, and
for other services, to be provided during the next fiscal year.
Of the funds provided to the National Aeronautics and Space
Administration in this Act, the Administrator shall by November
1, 1998, make available no less than $400,000 for a study by
the National Research Council, with an interim report to be
completed by June 1, 1998, that evaluates, in terms of the
potential impact on the Space Station's assembly schedule,
budget, and capabilities, the engineering challenges posed by
extravehicular activity (EVA) requirements, United States and
non-United States space launch requirements, the potential need
to upgrade or replace equipment and components after assembly
complete, and the requirement to decommission and disassemble
the facility.
National Credit Union Administration
central liquidity facility
During fiscal year 1998, gross obligations of the Central
Liquidity Facility for the principal amount of new direct loans
to member credit unions, as authorized by the National Credit
Union Central Liquidity Facility Act (12 U.S.C. 1795), shall
not exceed $600,000,000: Provided, That administrative expenses
of the Central Liquidity Facility in fiscal year 1998 shall not
exceed $203,000: Provided further, That $1,000,000, together
with amounts of principal and interest on loans repaid, to be
available until expended, is available for loans to community
development credit unions.
National Science Foundation
research and related activities
For necessary expenses in carrying out the National Science
Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), and
the Act to establish a National Medal of Science (42 U.S.C.
1880-1881); services as authorized by 5 U.S.C. 3109;
maintenance and operation of aircraft and purchase of flight
services for research support; acquisition of aircraft;
$2,545,700,000, of which not to exceed $228,530,000 shall
remain available until expended for Polar research and
operations support, and for reimbursement to other Federal
agencies for operational and science support and logistical and
other related activities for the United States Antarctic
program; the balance to remain available until September 30,
1999: Provided, That receipts for scientific support services
and materials furnished by the National Research Centers and
other National Science Foundation supported research
facilitiesmay be credited to this appropriation: Provided further, That
to the extent that the amount appropriated is less than the total
amount authorized to be appropriated for included program activities,
all amounts, including floors and ceilings, specified in the
authorizing Act for those program activities or their subactivities
shall be reduced proportionally: Provided further, That $40,000,000 of
the funds available under this heading shall be made available for a
comprehensive research initiative on plant genomes for economically
significant crop.
major research equipment
For necessary expenses of major construction projects
pursuant to the National Science Foundation Act of 1950, as
amended, $109,000,000, to remain available until expended, of
which $35,000,000 shall become available on September 30, 1998.
education and human resources
For necessary expenses in carrying out science and
engineering education and human resources programs and
activities pursuant to the National Science Foundation Act of
1950, as amended (42 U.S.C. 1861-1875), including services as
authorized by 5 U.S.C. 3109 and rental of conference rooms in
the District of Columbia, $632,500,000, to remain available
until September 30, 1999: Provided, That to the extent that the
amount of this appropriation is less than the total amount
authorized to be appropriated for included program activities,
all amounts, including floors and ceilings, specified in the
authorizing Act for those program activities or their
subactivities shall be reduced proportionally.
salaries and expenses
For salaries and expenses necessary in carrying out the
National Science Foundation Act of 1950, as amended (42 U.S.C.
1861-1875); services authorized by 5 U.S.C. 3109; hire of
passenger motor vehicles; not to exceed $9,000 for official
reception and representation expenses; uniforms or allowances
therefor, as authorized by 5 U.S.C. 5901-5902; rental of
conference rooms in the District of Columbia; reimbursement of
the General Services Administration for security guard services
and headquarters relocation; $136,950,000: Provided, That
contracts may be entered into under ``Salaries and expenses''
in fiscal year 1998 for maintenance and operation of
facilities, and for other services, to be provided during the
next fiscal year.
office of inspector general
For necessary expenses of the Office of Inspector General
as authorized by the Inspector General Act of 1978, as amended,
$4,850,000, to remain available until September 30, 1999.
Neighborhood Reinvestment Corporation
payment to the neighborhood reinvestment corporation
For payment to the Neighborhood Reinvestment Corporation
for use in neighborhood reinvestment activities, as authorized
by the Neighborhood Reinvestment Corporation Act (42 U.S.C.
8101-8107), $60,000,000.
Selective Service System
salaries and expenses
For necessary expenses of the Selective Service System,
including expenses of attendance at meetings and of training
for uniformed personnel assigned to the Selective Service
System, as authorized by 5 U.S.C. 4101-4118 for civilian
employees; and not to exceed $1,000 for official reception and
representation expenses; $23,413,000: Provided, That during the
current fiscal year, the President may exempt this
appropriation from the provisions of 31 U.S.C. 1341, whenever
he deems such action to be necessary in the interest of
national defense: Provided further, That none of the funds
appropriated by this Act may be expended for or in connection
with the induction of any person into the Armed Forces of the
United States.
TITLE IV--GENERAL PROVISIONS
Sec. 401. Where appropriations in titles I, II, and III of
this Act are expendable for travel expenses and no specific
limitation has been placed thereon, the expenditures for such
travel expenses may not exceed the amounts set forth therefore
in the budget estimates submitted for the appropriations:
Provided, That this provision does not apply to accounts that
do not contain an object classification for travel: Provided
further, That this section shall not apply to travel performed
by uncompensated officials of local boards and appeal boards of
the Selective Service System; to travel performed directly in
connection with care and treatment of medical beneficiaries of
the Department of Veterans Affairs; to travel performed in
connection with major disasters or emergencies declared or
determined by the President under the provisions of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act; to
travel performed by the Offices of Inspector General in
connection with audits and investigations; or to payments to
interagency motor pools where separately set forth in the
budget schedules: Provided further, That if appropriations in
titles I, II, and III exceed the amounts set forth in budget
estimates initially submitted for such appropriations, the
expenditures for travel may correspondingly exceed the amounts
therefore set forth in the estimates in the same proportion.
Sec. 402. Appropriations and funds available for the
administrative expenses of the Department of Housing and Urban
Development and the Selective Service System shall be available
in the current fiscal year for purchase of uniforms, or
allowances therefor, as authorized by 5 U.S.C. 5901-5902; hire
of passenger motor vehicles; and services as authorized by 5
U.S.C. 3109.
Sec. 403. Funds of the Department of Housing and Urban
Development subject to the Government Corporation Control Act
or section 402 of the Housing Act of 1950 shall be available,
without regard to the limitations on administrative expenses,
for legal services on a contract or fee basis, and for
utilizing and making payment for services and facilities of
Federal National Mortgage Association, Government National
Mortgage Association, Federal Home Loan Mortgage Corporation,
Federal Financing Bank, Federal Reserve banks or any member
thereof, Federal Home Loan banks, and any insured bank within
the meaning of the Federal Deposit Insurance Corporation Act,
as amended (12 U.S.C. 1811-1831).
Sec. 404. No part of any appropriation contained in this
Act shall remain available for obligation beyond the current
fiscal year unless expressly so provided herein.
Sec. 405. No funds appropriated by this Act may be
expended--
(1) pursuant to a certification of an officer or
employee of the United States unless--
(A) such certification is accompanied by,
or is part of, a voucher or abstract which
describes the payee or payees and the items or
services for which such expenditure is being
made, or
(B) the expenditure of funds pursuant to
such certification, and without such a voucher
or abstract, is specifically authorized by law;
and
(2) unless such expenditure is subject to audit by
the General Accounting Office or is specifically exempt
by law from such audit.
Sec. 406. None of the funds provided in this Act to any
department or agency may be expended for the transportation of
any officer or employee of such department or agency between
his domicile and his place of employment, with the exception of
any officer or employee authorized such transportation under 31
U.S.C. 1344 or 5 U.S.C. 7905.
Sec. 407. None of the funds provided in this Act may be
used for payment, through grants or contracts, to recipients
that do not share in the cost of conducting research resulting
from proposals not specifically solicited by the Government:
Provided, That the extent of cost sharing by the recipient
shall reflect the mutuality of interest of the grantee or
contractor and the Government in the research.
Sec. 408. None of the funds in this Act may be used,
directly or through grants, to pay or to provide reimbursement
for payment of the salary of a consultant (whether retained by
the Federal Government or a grantee) at more than the daily
equivalent of the rate paid for level IV of the Executive
Schedule, unless specifically authorized by law.
Sec. 409. None of the funds provided in this Act shall be
used to pay the expenses of, or otherwise compensate, non-
Federal parties intervening in regulatory or adjudicatory
proceedings. Nothing herein affects the authority of the
Consumer Product Safety Commission pursuant to section 7 of the
Consumer Product Safety Act (15 U.S.C. 2056 et seq.).
Sec. 410. Except as otherwise provided under existing law
or under an existing Executive Order issued pursuant to an
existing law, the obligation or expenditure of any
appropriation under this Act for contracts for any consulting
service shall be limited to contracts which are (1) a matter of
public record and available for public inspection, and (2)
thereafter included in a publicly available list of all
contracts entered into within twenty-four months prior to the
date on which the list is made available to the public and of
all contracts on which performance has not been completed by
such date. The list required by the preceding sentence shall be
updated quarterly and shall include a narrative description of
the work to be performed under each such contract.
Sec. 411. Except as otherwise provided by law, no part of
any appropriation contained in this Act shall be obligated or
expended by any executive agency, as referred to in the Office
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.), for
a contract for services unless such executive agency (1) has
awarded and entered into such contract in full compliance with
such Act and the regulations promulgated thereunder, and (2)
requires any report prepared pursuant to such contract,
including plans, evaluations, studies, analyses and manuals,
and any report prepared by the agency which is substantially
derived from or substantially includes any report prepared
pursuant to such contract, to contain information concerning
(A) the contract pursuant to which the report was prepared, and
(B) the contractor who prepared the report pursuant to such
contract.
Sec. 412. Except as otherwise provided in section 406, none
of the funds provided in this Act to any department or agency
shall be obligated or expended to provide a personal cook,
chauffeur, or other personal servants to any officer or
employee of such department or agency.
Sec. 413. None of the funds provided in this Act to any
department or agency shall be obligated or expended to procure
passenger automobiles as defined in 15 U.S.C. 2001 with an EPA
estimated miles per gallon average of less than 22 miles per
gallon.
Sec. 414. None of the funds appropriated in title I of this
Act shall be used to enter into any new lease of real property
if the estimated annual rental is more than $300,000 unless the
Secretary submits, in writing, a report to the Committees on
Appropriations of the Congress and a period of 30 days has
expired following the date on which the report is received by
the Committees on Appropriations.
Sec. 415. (a) It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products
purchased with funds made available in this Act should be
American-made.
(b) In providing financial assistance to, or entering into
any contract with, any entity using funds made available in
this Act, the head of each Federal agency, to the greatest
extent practicable, shall provide to such entity a notice
describing the statement made in subsection (a) by the
Congress.
Sec. 416. None of the funds appropriated in this Act may be
used to implement any cap on reimbursements to grantees for
indirect costs, except as published in Office of Management and
Budget Circular A-21.
Sec. 417. Such sums as may be necessary for fiscal year
1998 pay raises for programs funded by this Act shall be
absorbed within the levels appropriated in this Act.
Sec. 418. None of the funds made available in this Act may
be used for any program, project, or activity, when it is made
known to the Federal entity or official to which the funds are
made available that the program, project, or activity is not in
compliance with any Federal law relating to risk assessment,
the protection of private property rights, or unfunded
mandates.
Sec. 419. Corporations and agencies of the Department of
Housing and Urban Development which are subject to the
Government Corporation Control Act, as amended, are hereby
authorized to make such expenditures, within the limits of
funds and borrowing authority available to each such
corporation or agency and in accord with law, and to make such
contracts and commitments without regard to fiscal year
limitations as provided by section 104 of the Act as may be
necessary in carrying out the programs set forth in the budget
for 1998 for such corporation or agency except as hereinafter
provided: Provided, That collections of these corporations and
agencies may be used for new loan or mortgage purchase
commitments only to the extent expressly provided for in this
Act (unless such loans are in support of other forms of
assistance provided for in this or prior appropriations Acts),
except that this proviso shall not apply to the mortgage
insurance or guaranty operations of these corporations, or
where loans or mortgage purchases are necessary to protect the
financial interest of the United States Government.
Sec. 420. Notwithstanding section 320(g) of the Federal
Water Pollution Control Act (33 U.S.C. 1330(g)), funds made
available pursuant to authorization under such section for
fiscal year 1998 and prior fiscal years may be used for
implementing comprehensive conservation and management plans.
Sec. 421. Such funds as may be necessary to carry out the
orderly termination of the Office of Consumer Affairs shall be
made available from funds appropriated to the Department of
Health and Human Services for fiscal year 1998.
Sec. 422. Notwithstanding any other provision of law, the
term ``qualified student loan'' with respect to national
service education awards shall mean any loan made directly to a
student by the Alaska Commission on Postsecondary Education, in
addition to other meanings under section 148(b)(7) of the
National and Community Service Act.
TITLE V--HUD MULTIFAMILY HOUSING REFORM
SEC. 501. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE V--HUD MULTIFAMILY HOUSING REFORM
Sec. 510. Short title.
Subtitle A--FHA-Insured Multifamily Housing Mortgage and Housing
Assistance Restructuring
Sec. 511. Findings and purposes.
Sec. 512. Definitions.
Sec. 513. Authority of participating administrative entities.
Sec. 514. Mortgage restructuring and rental assistance sufficiency plan.
Sec. 515. Section 8 renewals and long-term affordability commitment by
owner of project.
Sec. 516. Prohibition on restructuring.
Sec. 517. Restructuring tools.
Sec. 518. Management standards.
Sec. 519. Monitoring of compliance.
Sec. 520. Reports to Congress.
Sec. 521. GAO audit and review.
Sec. 522. Regulations.
Sec. 523. Technical and conforming amendments.
Sec. 524. Section 8 contract renewals.
Subtitle B--Miscellaneous Provisions
Sec. 531. Rehabilitation grants for certain insured projects.
Sec. 532. GAO report on Section 8 rental assistance for multifamily
housing projects.
Subtitle C--Enforcement Provisions
Sec. 541. Implementation.
Sec. 542. Income verification.
PART 1--FHA SINGLE FAMILY AND MULTIFAMILY HOUSING
Sec. 551. Authorization to immediately suspend mortgagees.
Sec. 552. Extension of equity skimming to other single family and
multifamily housing programs.
Sec. 553. Civil money penalties against mortgagees, lenders, and other
participants in FHA programs.
PART 2--FHA MULTIFAMILY PROVISIONS
Sec. 561. Civil money penalties against general partners, officers,
directors, and certain managing agents of multifamily
projects.
Sec. 562. Civil money penalties for noncompliance with Section 8 HAP
contracts.
Sec. 563. Extension of double damages remedy.
Sec. 564. Obstruction of Federal audits.
Subtitle D--Office of Multifamily Housing Assistance Restructuring
Sec. 571. Establishment of Office of Multifamily Housing Assistance
Restructuring.
Sec. 572. Director.
Sec. 573. Duty and authority of Director.
Sec. 574. Personnel.
Sec. 575. Budget and financial reports.
Sec. 576. Limitation on subsequent employment.
Sec. 577. Audits by GAO.
Sec. 578. Suspension of program because of failure to appoint Director.
Sec. 579. Termination.
SEC. 510. SHORT TITLE.
This title may be cited as the ``Multifamily Assisted
Housing Reform and Affordability Act of 1997''.
Subtitle A--FHA-Insured Multifamily Housing Mortgage and Housing
Assistance Restructuring
SEC. 511. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) there exists throughout the Nation a need for
decent, safe, and affordable housing;
(2) as of the date of enactment of this Act, it is
estimated that--
(A) the insured multifamily housing
portfolio of the Federal Housing Administration
consists of 14,000 rental properties, with an
aggregate unpaid principal mortgage balance of
$38,000,000,000; and
(B) approximately 10,000 of these
properties contain housing units that are
assistedwith project-based rental assistance
under section 8 of the United States Housing Act of 1937;
(3) FHA-insured multifamily rental properties are a
major Federal investment, providing affordable rental
housing to an estimated 2,000,000 low- and very low-
income families;
(4) approximately 1,600,000 of these families live
in dwelling units that are assisted with project-based
rental assistance under section 8 of the United States
Housing Act of 1937;
(5) a substantial number of housing units receiving
project-based assistance have rents that are higher
than the rents of comparable, unassisted rental units
in the same housing rental market;
(6) many of the contracts for project-based
assistance will expire during the several years
following the date of enactment of this Act;
(7) it is estimated that--
(A) if no changes in the terms and
conditions of the contracts for project-based
assistance are made before fiscal year 2000,
the cost of renewing all expiring rental
assistance contracts under section 8 of the
United States Housing Act of 1937 for both
project-based and tenant-based rental
assistance will increase from approximately
$3,600,000,000 in fiscal year 1997 to over
$14,300,000,000 by fiscal year 2000 and some
$22,400,000,000 in fiscal year 2006;
(B) of those renewal amounts, the cost of
renewing project-based assistance will increase
from $1,200,000,000 in fiscal year 1997 to
almost $7,400,000,000 by fiscal year 2006; and
(C) without changes in the manner in which
project-based rental assistance is provided,
renewals of expiring contracts for project-
based rental assistance will require an
increasingly larger portion of the
discretionary budget authority of the
Department of Housing and Urban Development in
each subsequent fiscal year for the foreseeable
future;
(8) absent new budget authority for the renewal of
expiring rental contracts for project-based assistance,
many of the FHA-insured multifamily housing projects
that are assisted with project-based assistance are
likely to default on their FHA-insured mortgage
payments, resulting in substantial claims to the FHA
General Insurance Fund and Special Risk Insurance Fund;
(9) more than 15 percent of federally assisted
multifamily housing projects are physically or
financially distressed, including a number which suffer
from mismanagement;
(10) due to Federal budget constraints, the
downsizing of the Department of Housing and Urban
Development, and diminished administrative capacity,
the Department lacks the ability to ensure the
continued economic and physical well-being of the stock
of federally insured and assisted multifamily housing
projects;
(11) the economic, physical, and management
problems facing the stock of federally insured and
assisted multifamily housing projects will be best
served by reforms that--
(A) reduce the cost of Federal rental
assistance, including project-based assistance,
to these projects by reducing the debt service
and operating costs of these projects while
retaining the low-income affordability and
availability of this housing;
(B) address physical and economic distress
of this housing and the failure of some project
managers and owners of projects to complywith
management and ownership rules and requirements; and
(C) transfer and share many of the loan and
contract administration functions and
responsibilities of the Secretary to and with
capable State, local, and other entities; and
(12) the authority and duties of the Secretary, not
including the control by the Secretary of applicable
accounts in the Treasury of the United States, may be
delegated to State, local or other entities at the
discretion of the Secretary, to the extent the
Secretary determines, and for the purpose of carrying
out this Act, so that the Secretary has the discretion
to be relieved of processing and approving any document
or action required by these reforms.
(b) Purposes.--Consistent with the purposes and
requirements of the Government Performance and Results Act of
1993, the purposes of this subtitle are--
(1) to preserve low-income rental housing
affordability and availability while reducing the long-
term costs of project-based assistance;
(2) to reform the design and operation of Federal
rental housing assistance programs, administered by the
Secretary, to promote greater multifamily housing
project operating and cost efficiencies;
(3) to encourage owners of eligible multifamily
housing projects to restructure their FHA-insured
mortgages and project-based assistance contracts in a
manner that is consistent with this subtitle before the
year in which the contract expires;
(4) to reduce the cost of insurance claims under
the National Housing Act related to mortgages insured
by the Secretary and used to finance eligible
multifamily housing projects;
(5) to streamline and improve federally insured and
assisted multifamily housing project oversight and
administration;
(6) to resolve the problems affecting financially
and physically troubled federally insured and assisted
multifamily housing projects through cooperation with
residents, owners, State and local governments, and
other interested entities and individuals;
(7) to protect the interest of project owners and
managers, because they are partners of the Federal
Government in meeting the affordable housing needs of
the Nation through the section 8 rental housing
assistance program;
(8) to protect the interest of tenants residing in
the multifamily housing projects at the time of the
restructuring for the housing; and
(9) to grant additional enforcement tools to use
against those who violate agreements and program
requirements, in order to ensure that the public
interest is safeguarded and that Federal multifamily
housing programs serve their intended purposes.
SEC. 512. DEFINITIONS.
In this subtitle:
(1) Comparable properties.--The term ``comparable
properties'' means properties in the same market areas,
where practicable, that--
(A) are similar to the eligible multifamily
housing project as to neighborhood (including
risk of crime), type of location, access,
street appeal, age, property size, apartment
mix, physical configuration, property and unit
amenities, utilities, and other relevant
characteristics; and
(B) are not receiving project-based
assistance.
(2) Eligible multifamily housing project.--The term
``eligible multifamily housing project'' means a
property consisting of more than 4 dwelling units--
(A) with rents that, on an average per unit
or per room basis, exceed the rent of
comparable properties in the same market area,
determined in accordance with guidelines
established by the Secretary;
(B) that is covered in whole or in part by
a contract for project-based assistance under--
(i) the new construction or
substantial rehabilitation program
under section 8(b)(2) of the United
States Housing Act of 1937 (as in
effect before October 1, 1983);
(ii) the property disposition
program under section 8(b) of the
United States Housing Act of 1937;
(iii) the moderate rehabilitation
program under section 8(e)(2) of the
United States Housing Act of 1937;
(iv) the loan management assistance
program under section 8 of the United
States Housing Act of 1937;
(v) section 23 of the United States
Housing Act of 1937 (as in effect
before January 1, 1975);
(vi) the rent supplement program
under section 101 of the Housing and
Urban Development Act of 1965; or
(vii) section 8 of the United
States Housing Act of 1937, following
conversion from assistance under
section 101 of the Housing and Urban
Development Act of 1965; and
(C) financed by a mortgage insured or held
by the Secretary under the National Housing
Act.
(3) Expiring contract.--The term ``expiring
contract'' means a project-based assistance contract
attached to an eligible multifamily housing project
which, under the terms of the contract, will expire.
(4) Expiration date.--The term ``expiration date''
means the date on which an expiring contract expires.
(5) Fair market rent.--The term ``fair market
rent'' means the fair market rental established under
section 8(c) of the United States Housing Act of 1937.
(6) Low-income families.--The term ``low-income
families'' has the same meaning as provided under
section 3(b)(2) of the United States Housing Act of
1937.
(7) Mortgage restructuring and rental assistance
sufficiency plan.--The term ``mortgage restructuring
and rental assistance sufficiency plan'' means the plan
as provided under section 514.
(8) Nonprofit organization.--The term ``nonprofit
organization'' means any private non-profit
organization that--
(A) is organized under State or local laws;
(B) has no part of its net earnings inuring
to the benefit of any member, founder,
contributor, or individual; and
(C) has a long-term record of service in
providing or financing quality affordable
housing for low-income families through
relationships with public entities.
(9) Portfolio restructuring agreement.--The term
``Portfolio restructuring agreement'' means the
agreement entered into between the Secretary and a
participating administrative entity, as provided under
section 513.
(10) Participating administrative entity.--The term
``participating administrative entity'' means a public
agency (including a State housing finance agency or a
local housing agency), a nonprofit organization, or any
other entity (including a law firm or an accounting
firm) or a combination of such entities, that meets the
requirements under section 513(b).
(11) Project-based assistance.--The term ``project-
based assistance'' means rental assistance described in
paragraph (2)(B) of this section that is attached to a
multifamily housing project.
(12) Renewal.--The term ``renewal'' means the
replacement of an expiring Federal rental contract with
a new contract under section 8 of the United States
Housing Act of 1937, consistent with the requirements
of this subtitle.
(13) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
(14) State.--The term ``State'' has the same
meaning as in section 104 of the Cranston-Gonzalez
National Affordable Housing Act.
(15) Tenant-based assistance.--The term ``tenant-
based assistance'' has the same meaning as in section
8(f) of the United States Housing Act of 1937.
(16) Unit of general local government.--The term
``unit of general local government'' has the same
meaning as in section 104 of the Cranston-Gonzalez
National Affordable Housing Act.
(17) Very low-income family.--The term ``very low-
income family'' has the same meaning as in section 3(b)
of the United States Housing Act of 1937.
(18) Qualified mortgagee.--The term ``qualified
mortgagee'' means an entity approved by the Secretary
that is capable of servicing, as well as originating,
FHA-insured mortgages, and that--
(A) is not suspended or debarred by the
Secretary;
(B) is not suspended or on probation
imposed by the Mortgagee Review Board; and
(C) is not in default under any Government
National Mortgage Association obligation.
SEC. 513. AUTHORITY OF PARTICIPATING ADMINISTRATIVE ENTITIES.
(a) Participating Administrative Entities.--
(1) In general.--Subject to subsection (b)(3), the
Secretary shall enter into portfolio restructuring
agreements with participating administrative entities
for the implementation of mortgage restructuring and
rental assistance sufficiency plans to restructure
multifamily housing mortgages insured or held by the
Secretary under the National Housing Act, in order to--
(A) reduce the costs of expiring contracts
for assistance under section 8 of the United
States Housing Act of 1937;
(B) address financially and physically
troubled projects; and
(C) correct management and ownership
deficiencies.
(2) Portfolio restructuring agreements.--Each
portfolio restructuring agreement entered into under
this subsection shall--
(A) be a cooperative agreement to establish
the obligations and requirements between the
Secretary and the participating administrative
entity;
(B) identify the eligible multifamily
housing projects or groups of projects for
which the participating administrative entity
is responsible for assisting in developing and
implementing approved mortgage restructuring
and rental assistance sufficiency plans under
section 514;
(C) require the participating
administrative entity to review and certify to
the accuracy and completeness of the evaluation
of rehabilitation needs required under section
514(e)(3) for each eligible multifamily housing
project included in the portfolio restructuring
agreement, in accordance with regulations
promulgated by the Secretary;
(D) identify the responsibilities of both
the participating administrative entity and the
Secretary in implementing a mortgage
restructuring and rental assistance sufficiency
plan, including any actions proposed to be
taken under section 516 or 517;
(E) require each mortgage restructuring and
rental assistance sufficiency plan to be
prepared in accordance with the requirements of
section 514 for each eligible multifamily
housing project;
(F) include other requirements established
by the Secretary, including a right of the
Secretary to terminate the contract immediately
for failure of the participating administrative
entity to comply with any applicable
requirement;
(G) if the participating administrative
entity is a State housing finance agency or a
local housing agency, indemnify the
participating administrative entity against
lawsuits and penalties for actions taken
pursuant to the agreement, excluding actions
involving willful misconduct or negligence;
(H) include compensation for all reasonable
expenses incurred by the participating
administrative entity necessary to perform its
duties under this subtitle; and
(I) include, where appropriate, incentive
agreements with the participating
administrative entity to reward superior
performance in meeting the purposes of this
Act.
(b) Selection of Participating Administrative Entity.--
(1) Selection criteria.--The Secretary shall select
a participating administrative entity based on whether,
in the determination of the Secretary, the
participating administrative entity--
(A) has demonstrated experience in working
directly with residents of low-income housing
projects and with tenants and other community-
based organizations;
(B) has demonstrated experience with and
capacity for multifamily restructuring and
multifamily financing (which may include risk-
sharing arrangements and restructuring eligible
multifamily housing properties under the fiscal
year 1997 Federal Housing Administration
multifamily housing demonstration program);
(C) has a history of stable, financially
sound, and responsible administrative
performance (which may include the management
of affordable low-income rental housing);
(D) has demonstrated financial strength in
terms of asset quality, capital adequacy, and
liquidity;
(E) has demonstrated that it will carry out
the specific transactions and other
responsibilities under this part in a timely,
efficient, and cost-effective manner; and
(F) meets other criteria, as determined by
the Secretary.
(2) Selection.--If more than 1 interested entity
meets the qualifications and selection criteria for a
participating administrative entity, the Secretary may
select the entity that demonstrates, as determined by
the Secretary, that it will--
(A) provide the most timely, efficient, and
cost-effective--
(i) restructuring of the mortgages
covered by the portfolio restructuring
agreement; and
(ii) administration of the section
8 project-based assistance contract, if
applicable; and
(B) protect the public interest (including
the long-term provision of decent low-income
affordable rental housing and protection of
residents, communities, and the American
taxpayer).
(3) Partnerships.--For the purposes of any
participating administrative entity applying under this
subsection, participating administrative entities are
encouraged to develop partnerships with each other and
with nonprofit organizations, if such partnerships will
further the participating administrative entity's
ability to meet the purposes of this Act.
(4) Alternative administrators.--With respect to
any eligible multifamily housing project for which a
participating administrative entity is unavailable, or
should not be selected to carry out the requirements of
this subtitle with respect to that multifamily housing
project for reasons relating to the selection criteria
under paragraph (1), the Secretary shall--
(A) carry out the requirements of this
subtitle with respect to that eligible
multifamily housing project; or
(B) contract with other qualified entities
that meet the requirements of paragraph (1) to
provide the authority to carry out all or a
portion of the requirements of this subtitle
with respect to that eligible multifamily
housing project.
(5) Priority for public agencies as participating
administrative entities.--The Secretary shall provide a
reasonable period during which the Secretary will
consider proposals only from State housing finance
agencies or local housing agencies, and the Secretary
shall select such an agency without considering other
applicants if the Secretary determines that the agency
is qualified. The period shall be of sufficient
duration for the Secretary to determine whether any
State housing financing agencies or local housing
agencies are interested and qualified. Not later than
the end of the period, the Secretary shall notify the
State housing finance agency or the local housing
agency regarding the status of the proposal and, if the
proposal is rejected, the reasons for the rejection and
an opportunity for the applicant to respond.
(6) State and local portfolio requirements.--
(A) In general.--If the housing finance
agency of a State is selected as the
participating administrative entity, that
agency shall be responsible for such eligible
multifamily housing projects in that State as
may be agreed upon by the participating
administrative entity and the Secretary. If a
local housing agency is selected as the
participating administrative entity, that
agency shall be responsible for such eligible
multifamily housing projects in the
jurisdiction of the agency as may be agreed
upon by the participating administrative entity
and the Secretary.
(B) Nondelegation.--Except with the prior
approval of the Secretary, a participating
administrative entity may not delegate or
transfer responsibilities and functions under
this subtitle to 1 or more entities.
(7) Private entity requirements.--
(A) In general.--If a for-profit entity is
selected as the participating administrative
entity, that entity shall be required to enter
into a partnership with a public purpose entity
(including the Department).
(B) Prohibition.--No private entity shall
share, participate in, or otherwise benefit
from any equity created, received, or
restructured as a result of the portfolio
restructuring agreement.
SEC. 514. MORTGAGE RESTRUCTURING AND RENTAL ASSISTANCE SUFFICIENCY
PLAN.
(a) In General.--
(1) Development of procedures and requirements.--
The Secretary shall develop procedures and requirements
for the submission of a mortgage restructuring and
rental assistance sufficiency plan for each eligible
multifamily housing project with an expiring contract.
(2) Terms and conditions.--Each mortgage
restructuring and rental assistance sufficiency plan
submitted under this subsection shall be developed by
the participating administrative entity, in cooperation
with an owner of an eligible multifamily housing
project and any servicer for the mortgage that is a
qualified mortgagee, under such terms and conditions as
the Secretary shall require.
(3) Consolidation.--Mortgage restructuring and
rental assistance sufficiency plans submitted under
this subsection may be consolidated as part of an
overall strategy for more than 1 property.
(b) Notice Requirements.--The Secretary shall establish
notice procedures and hearing requirements for tenants and
owners concerning the dates for the expiration of project-based
assistance contracts for any eligible multifamily housing
project.
(c) Extension of Contract Term.--Subject to agreement by a
project owner, the Secretary may extend the term of any
expiring contract or provide a section 8 contract with rent
levels set in accordance with subsection (g) for a period
sufficient to facilitate the implementation of a mortgage
restructuring and rental assistance sufficiency plan, as
determined by the Secretary.
(d) Tenant Rent Protection.--If the owner of a project with
an expiring Federal rental assistance contract does not agree
to extend the contract, not less than 12 months prior to
terminating the contract, the project owner shall provide
written notice to the Secretary and the tenants and the
Secretary shall make tenant-based assistance available to
tenants residing in units assisted under the expiring contract
at the time of expiration.
(e) Mortgage Restructuring and Rental Assistance
Sufficiency Plan.--Each mortgage restructuring and rental
assistance sufficiency plan shall--
(1) except as otherwise provided, restructure the
project-based assistance rents for the eligible
multifamily housing project in a manner consistent with
subsection (g), or provide for tenant-based assistance
in accordance with section 515;
(2) allow for rent adjustments by applying an
operating cost adjustment factor established under
guidelines established by the Secretary;
(3) require the owner or purchaser of an eligible
multifamily housing project to evaluate the
rehabilitation needs of the project, in accordance with
regulations of the Secretary, and notify the
participating administrative entity of the
rehabilitation needs;
(4) require the owner or purchaser of the project
to provide or contract for competent management of the
project;
(5) require the owner or purchaser of the project
to take such actions as may be necessary to
rehabilitate, maintain adequate reserves, and to
maintain the project in decent and safe condition,
based on housing quality standards established by--
(A) the Secretary; or
(B) local housing codes or codes adopted by
public housing agencies that--
(i) meet or exceed housing quality
standards established by the Secretary;
and
(ii) do not severely restrict
housing choice;
(6) require the owner or purchaser of the project
to maintain affordability and use restrictions in
accordance with regulations promulgated by the
Secretary, for a term of not less than 30 years which
restrictions shall be--
(A) contained in a legally enforceable
document recorded in the appropriate records;
and
(B) consistent with the long-term physical
and financial viability and character of the
project as affordable housing;
(7) include a certification by the participating
administrative entity that the restructuring meets
subsidy layering requirements established by the
Secretary by regulation for purposes of this subtitle;
(8) require the owner or purchaser of the project
to meet such other requirements as the Secretary
determines to be appropriate; and
(9) prohibit the owner from refusing to lease a
reasonable number of units to holders of certificates
and vouchers under section 8 of the United States
Housing Act of 1937 because of the status of the
prospective tenants as certificate and voucher holders.
(f) Tenant and Other Participation and Capacity Building.--
(1) Procedures.--
(A) In general.--The Secretary shall
establish procedures to provide an opportunity
for tenants of the project, residents of the
neighborhood, the local government, and other
affected parties to participate effectively and
on a timely basis in the restructuring process
established by this subtitle.
(B) Coverage.--These procedures shall take
into account the need to provide tenants of the
project, residents of the neighborhood, the
local government, and other affected parties
timely notice of proposed restructuring actions
and appropriate access to relevant information
about restructuring activities. To the extent
practicable and consistent with the need to
accomplish project restructuring in an
efficient manner, the procedures shall give all
such parties an opportunity to provide comments
to the participating administrative entity in
writing, in meetings, or in another appropriate
manner (which comments shall be taken into
consideration by the participating
administrative entity).
(2) Required consultation.--The procedures
developed pursuant to paragraph (1) shall require
consultation with tenants of the project, residents of
the neighborhood, the local government, and other
affected parties, in connection with at least the
following:
(A) the mortgage restructuring and rental
assistance sufficiency plan;
(B) any proposed transfer of the project;
and
(C) the rental assistance assessment plan
pursuant to section 515(c).
(3) Funding.--
(A) In general.--The Secretary may provide
not more than $10,000,000 annually in funding
from which the Secretary may make obligations
to tenant groups, nonprofit organizations, and
public entities for building the capacity of
tenant organizations, for technical assistance
in furthering any of the purposes of this
subtitle (including transfer of developments to
new owners) and for tenant services, from those
amounts made available under appropriations
Acts for implementing this subtitle or
previously made available for technical
assistance in connection with the preservation
of affordable rental housing for low-income
persons.
(B) Manner of providing.--Notwithstanding
any other provision of law restricting the use
of preservation technical assistance funds, the
Secretary may provide any funds made available
under subparagraph (A) through existing
technical assistance programs pursuant to any
other Federal law, including the Low-Income
Housing Preservation and Resident Homeownership
Act of 1990 and the Multifamily Property
Disposition Reform Act of 1994, or through any
other means that the Secretary considers
consistent with the purposes of this subtitle,
without regard to any set-aside requirement
otherwise applicable to those funds.
(C) Prohibition.--None of the funds made
available under subparagraph (A) may be used
directly or indirectly to pay for any personal
service, advertisement, telegram, telephone,
letter, printed or written matter, or other
device, intended or designed to influence in
any manner a Member of Congress, to favor or
oppose, by vote or otherwise, any legislation
or appropriation by Congress, whether before or
after the introduction of any bill or
resolution proposing such legislation or
appropriation.
(g) Rent Levels.--
(1) In general.--Except as provided in paragraph
(2), each mortgage restructuring and rental assistance
sufficiency plan pursuant to the terms, conditions, and
requirements of this subtitle shall establish for units
assisted with project-based assistance in eligible
multifamily housing projects adjusted rent levels
that--
(A) are equivalent to rents derived from
comparable properties, if--
(i) the participating
administrative entity makes the rent
determination within a reasonable
period of time; and
(ii) the market rent determination
is based on not less than 2 comparable
properties; or
(B) if those rents cannot be determined,
are equal to 90 percent of the fair market
rents for the relevant market area.
(2) Exceptions.--
(A) In general.--A contract under this
section may include rent levels that exceed the
rent level described in paragraph (1) at rent
levels that do not exceed 120 percent of the
fair market rent for the market area (except
that the Secretary may waive this limit for not
more than five percent of all units subject to
restructured mortgages in any fiscal year,
based on a finding of special need), if the
participating administrative entity--
(i) determines that the housing
needs of the tenants and the community
cannot be adequately addressed through
implementation of the rent limitation
required to be established through a
mortgage restructuring and rental
assistance sufficiency plan under
paragraph (1); and
(ii) follows the procedures under
paragraph (3).
(B) Exception rents.--In any fiscal year, a
participating administrative entity may approve
exception rents on not more than 20 percent of
all units covered by the portfolio
restructuring agreement with expiring contracts
in that fiscal year, except that the Secretary
may waive this ceiling upon a finding of
special need.
(3) Rent levels for exception projects.--For
purposes of this section, a project eligible for an
exception rent shall receive a rent calculated based on
the actual and projected costs of operating the
project, at a level that provides income sufficient to
support a budget-based rent that consists of--
(A) the debt service of the project;
(B) the operating expenses of the project,
as determined by the participating
administrative entity, including--
(i) contributions to adequate
reserves;
(ii) the costs of maintenance and
necessary rehabilitation; and
(iii) other eligible costs
permitted under section 8 of the United
States Housing Act of 1937;
(C) an adequate allowance for potential
operating losses due to vacancies and failure
to collect rents, as determined by the
participating administrative entity;
(D) an allowance for a reasonable rate of
return to the owner or purchaser of the
project, as determined by the participating
administrative entity, which may be established
to provide incentives for owners or purchasers
to meet benchmarks of quality for management
and housing quality; and
(E) other expenses determined by the
participating administrative entity to be
necessary for the operation of the project.
(h) Exemptions From Restructuring.--The following
categories of projects shall not be covered by a mortgage
restructuring and rental assistance sufficiency plan if--
(1) the primary financing or mortgage insurance for
the multifamily housing project that is covered by that
expiring contract was provided by a unit of State
government or a unit of general local government (or an
agency or instrumentality of a unit of a State
government or unit of general local government);
(2) the project is a project financed under section
202 of the Housing Act of 1959 or section 515 of the
Housing Act of 1949; or
(3) the project has an expiring contract under
section 8 of the United States Housing Act of 1937
entered into pursuant to section 441 of the Stewart B.
McKinney Homeless Assistance Act.
SEC. 515. SECTION 8 RENEWALS AND LONG-TERM AFFORDABILITY COMMITMENT BY
OWNER OF PROJECT.
(a) Section 8 Renewals of Restructured Projects.--
(1) Project-based assistance.--Subject to the
availability of amounts provided in advance in
appropriations Acts, and to the control of the
Secretary of applicable accounts in the Treasury of the
United States, with respect to an expiring section 8
contract on an eligible multifamily housing project to
be renewed with project-based assistance (based on a
determination under subsection (c)), the Secretary
shall enter into contracts with participating
administrative entities pursuant to which the
participating administrative entity shall offer to
renew or extend the contract, or the Secretary shall
offer to renew such contract, and the owner of the
project shall accept the offer, if the initial renewal
is in accordance with the terms and conditions
specified in the mortgage restructuring and rental
assistance sufficiency plan and the rental assistance
assessment plan.
(2) Tenant-based assistance.--Subject to the
availability of amounts provided in advance in
appropriations Acts and to the control of the Secretary
of applicable accounts in the Treasury of the United
States, with respect to an expiring section 8 contract
on an eligible multifamily housing project to be
renewed with tenant-based assistance (based on a
determination under subsection (c)), the Secretary
shall enter into contracts with participating
administrative entities pursuant to which the
participating administrative entity shall provide for
the renewal of section 8 assistance on an eligible
multifamily housing project with tenant-based
assistance, or the Secretary shall provide for such
renewal, in accordance with the terms and conditions
specified in the mortgage restructuring and rental
assistance sufficiency plan and the rental assistance
assessment plan.
(b) Required Commitment.--After the initial renewal of a
section 8 contract pursuant to this section, the owner shall
accept each offer made pursuant to subsection(a) to renew the
contract, for the term of the affordability and use restrictions
required by section 514(e)(6), if the offer to renew is on terms and
conditions specified in the mortgage restructuring and rental
assistance sufficiency plan.
(c) Determination of Whether To Renew With Project-Based or
Tenant-Based Assistance.--
(1) Mandatory renewal of project-based
assistance.--Section 8 assistance shall be renewed with
project-based assistance, if--
(A) the project is located in an area in
which the participating administrative entity
determines, based on housing market indicators,
such as low vacancy rates or high absorption
rates, that there is not adequate available and
affordable housing or that the tenants of the
project would not be able to locate suitable
units or use the tenant-based assistance
successfully;
(B) a predominant number of the units in
the project are occupied by elderly families,
disabled families, or elderly and disabled
families;
(C) the project is held by a nonprofit
cooperative ownership housing corporation or
nonprofit cooperative housing trust.
(2) Rental assistance assessment plan.--
(A) In general.--With respect to any
project that is not described in paragraph (1),
the participating administrative entity shall,
after consultation with the owner of the
project, develop a rental assistance assessment
plan to determine whether to renew assistance
for the project with tenant-based assistance or
project-based assistance.
(B) Rental assistance assessment plan
requirements.--Each rental assistance
assessment plan developed under this paragraph
shall include an assessment of the impact of
converting to tenant-based assistance and the
impact of extending project-based assistance
on--
(i) the ability of the tenants to
find adequate, available, decent,
comparable, and affordable housing in
the local market;
(ii) the types of tenants residing
in the project (such as elderly
families, disabled families, large
families, and cooperative homeowners);
(iii) the local housing needs
identified in the comprehensive housing
affordability strategy, and local
market vacancy trends;
(iv) the cost of providing
assistance, comparing the applicable
payment standard to the project's
adjusted rent levels determined under
section 514(g);
(v) the long-term financial
stability of the project;
(vi) the ability of residents to
make reasonable choices about their
individual living situations;
(vii) the quality of the
neighborhood in which the tenants would
reside; and
(viii) the project's ability to
compete in the marketplace.
(C) Reports to director.--Each
participating administrative entity shall
report regularly to the Director as defined in
subtitle D, as the Director shall require,
identifying--
(i) each eligible multifamily
housing project for which the entity
has developed a rental assistance
assessment plan under this paragraph
that determined that the tenants of the
project generally supported renewal of
assistance with tenant-based
assistance, but under which assistance
for the project was renewed with
project-based assistance; and
(ii) each project for which the
entity has developed such a plan under
which the assistance is renewed using
tenant-based assistance.
(3) Eligibility for tenant-based assistance.--
Subject to paragraph (4), with respect to any project
that is not described in paragraph (1), if a
participating administrative entity approves the use of
tenant-based assistance based on a rental assistance
assessment plan developed under paragraph (2), tenant-
based assistance shall be provided to each assisted
family (other than a family already receiving tenant-
based assistance) residing in the project at the time
the assistance described in section 512(2)(B)
terminates.
(4) Rents for families receiving tenant-based
assistance.--
(A) In general.--Notwithstanding subsection
(c)(1) or (o)(1) of section 8 of the United
States Housing Act of 1937, in the case of any
family described in paragraph (3) that resides
in a project described in section 512(2)(B) in
which the reasonable rent (which rent shall
include any amount allowed for utilities and
shall not exceed comparable market rents for
the relevant housing market area) exceeds the
fair market rent limitation or the payment
standard, as applicable, the amount of
assistance for the family shall be determined
in accordance with subparagraph (B).
(B) Maximum monthly rent; payment
standard.--With respect to the certificate
program under section 8(b) of the United States
Housing Act of 1937, the maximum monthly rent
under the contract (plus any amount allowed for
utilities) shall be such reasonable rent for
the unit. With respect to the voucher program
under section 8(o) of the United States Housing
Act of 1937, the payment standard shall be
deemed to be such reasonable rent for the unit.
(5) Inapplicability of certain provision.--If a
participating administrative entity approves renewal
with project-based assistance under this subsection,
section 8(d)(2) of the United States Housing Act of
1937 shall not apply.
SEC. 516. PROHIBITION ON RESTRUCTURING.
(a) Prohibition on Restructuring.--The Secretary may elect
not to consider any mortgage restructuring and rental
assistance sufficiency plan or request for contract renewal if
the Secretary or the participating administrative entity
determines that--
(1)(A) the owner or purchaser of the project has
engaged in material adverse financial or managerial
actions or omissions with regard to such project; or
(B) the owner or purchaser of the project has
engaged in material adverse financial or managerial
actions or omissions with regard to other projects of
such owner or purchaser that are federally-assisted or
financed with a loan from, or mortgage insured or
guaranteed by, an agency of the Federal government.
(2) Material adverse financial or managerial
actions or omissions include--
(A) materially violating any Federal,
State, or local law or regulation with regard
to this project or any other federally assisted
project, after receipt of notice and an
opportunity to cure;
(B) materially breaching a contract for
assistance under section 8 of the United States
Housing Act of 1937, after receipt of notice
and an opportunity to cure;
(C) materially violating any applicable
regulatory or other agreement with the
Secretary or a participating administrative
entity, after receipt of notice and an
opportunity to cure;
(D) repeatedly and materially violating any
Federal, State, or local law or regulation with
regard to the project or any other federally
assisted project;
(E) repeatedly and materially breaching a
contract for assistance under section 8 of the
United States Housing Act of 1937;
(F) repeatedly and materially violating any
applicable regulatory or other agreement with
the Secretary or a participating administrative
entity;
(G) repeatedly failing to make mortgage
payments at times when project income was
sufficient to maintain and operate the
property;
(H) materially failing to maintain the
property according to housing quality standards
after receipt of notice and a reasonable
opportunity to cure; or
(I) committing any actions or omissions
that would warrant suspension or debarment by
the Secretary;
(3) the owner or purchaser of the property
materially failed to follow the procedures and
requirements of this part, after receipt of notice and
an opportunity to cure; or
(4) the poor condition of the project cannot be
remedied in a cost effective manner, as determined by
the participating administrative entity.
The term ``owner'' as used in this subsection, in addition to
it having the same meaning as in section 8(f) of the United
States Housing Act of 1937, also means an affiliate of the
owner. The term ``purchaser'' as used in this subsection means
any private person or entity, including a cooperative, an
agency of the Federal Government, or a public housing agency,
that, upon purchase of the project, would have the legal right
to lease or sublease dwelling units in the project, and also
means an affiliate of the purchaser. The terms ``affiliate of
the owner'' and ``affiliate of the purchaser'' means any person
or entity (including, but not limited to, a general partner or
managing member, or an officer of either) that controls an
owner or purchaser, is controlled by an owner or purchaser, or
is under common control with the owner or purchaser. The term
``control'' means the direct or indirect power (under contract,
equity ownership, the right to vote or determine a vote, or
otherwise) to direct the financial legal, beneficial or other
interests of the owner or purchaser.
(b) Opportunity To Dispute Findings.--
(1) In general.--During the 30-day period beginning
on the date on which the owner or purchaser of an
eligible multifamily housing project receives notice of
a rejection under subsection (a) or of a mortgage
restructuring and rental assistance sufficiency plan
under section 514, the Secretary or participating
administrative entity shall provide that owner or
purchaser with an opportunity to dispute the basis for
the rejection and an opportunity to cure.
(2) Affirmation, modification, or reversal.--
(A) In general.--After providing an
opportunity to dispute under paragraph (1), the
Secretary or the participating administrative
entity may affirm, modify, or reverse any
rejection under subsection (a) or rejection of
a mortgage restructuring and rental assistance
sufficiency plan under section 514.
(B) Reasons for decision.--The Secretary or
the participating administrative entity, as
applicable, shall identify the reasons for any
final decision under this paragraph.
(C) Review process.--The Secretary shall
establish an administrative review process to
appeal any final decision under this paragraph.
(c) Final Determination.--Any final determination under
this section shall not be subject to judicial review.
(d) Displaced Tenants.--Subject to the availability of
amounts provided in advance in appropriations Acts, for any
low-income tenant that is residing in a project or receiving
assistance under section 8 of the United States Housing Act of
1937 at the time of rejection under this section, that tenant
shall be provided with tenant-based assistance and reasonable
moving expenses, as determined by the Secretary.
(e) Transfer of Property.--For properties disqualified from
the consideration of a mortgage restructuring and rental
assistance sufficiency plan under this section in accordance
with paragraph (1) or (2) of subsection (a) because of actions
by an owner or purchaser, the Secretary shall establish
procedures to facilitate the voluntary sale or transfer of a
property as part of a mortgage restructuring and rental
assistance sufficiency plan, with a preference for tenant
organizations and tenant-endorsed community-based nonprofit and
public agency purchasers meeting such reasonable qualifications
as may be established by the Secretary.
SEC. 517. RESTRUCTURING TOOLS.
(a) Mortgage Restructuring.--
(1) In this part, an approved mortgage
restructuring and rental assistance sufficiency plan
shall include restructuring mortgages in accordance
with this subsection to provide--
(A) a restructured or new first mortgage
that is sustainable at rents at levels that are
established in section 514(g); and
(B) a second mortgage that is in an amount
equal to no more than the difference between
the restructured or new first mortgage and the
indebtedness under the existing insured
mortgage immediately before it is restructured
or refinanced, provided that the amount of the
second mortgage shall be in an amount that the
Secretary or participating administrative
entity determines can reasonably be expected to
be repaid.
(2) The second mortgage shall bear interest at a
rate not to exceed the applicable Federal rate as
defined in section 1274(d) of the Internal Revenue Code
of 1986. The term of the second mortgage shall be equal
to the term of the restructured or new first mortgage.
(3) Payments on the second mortgage shall be
deferred when the first mortgage remains outstanding,
except to the extent there is excess project income
remaining after payment of all reasonable and necessary
operating expenses (including deposits in a reserve for
replacement), debt service on the first mortgage, and
any other expenditures approved by the Secretary. At
least 75 percent of any excess project income shall be
applied to payments on thesecond mortgage, and the
Secretary or the participating administrative entity may permit up to
25 percent to be paid to the project owner if the Secretary or
participating administrative entity determines that the project owner
meets benchmarks for management and housing quality.
(4) The full amount of the second mortgage shall be
immediately due and payable if--
(A) the first mortgage is terminated or
paid in full, except as otherwise provided by
the holder of the second mortgage;
(B) the project is purchased and the second
mortgage is assumed by any subsequent purchaser
in violation of guidelines established by the
Secretary; or
(C) the Secretary provides notice to the
project owner that such owner has failed to
materially comply with any requirements of this
section or the United States Housing Act of
1937 as those requirements apply to the
project, with a reasonable opportunity for such
owner to cure such failure.
(5) The Secretary may modify the terms or forgive
all or part of the second mortgage if the Secretary
holds the second mortgage and if the project is
acquired by a tenant organization or tenant-endorsed
community-based nonprofit or public agency, pursuant to
guidelines established by the Secretary.
(b) Restructuring Tools.--In addition to the requirements
of subsection (a) and to the extent these actions are
consistent with this section and with the control of the
Secretary of applicable accounts in the Treasury of the United
States, an approved mortgage restructuring and rental
assistance sufficiency plan under this subtitle may include 1
or more of the following actions:
(1) Full or partial payment of claim.--Making a
full payment of claim or partial payment of claim under
section 541(b) of the National Housing Act, as amended
by section 523(b) of this Act. Any payment under this
paragraph shall not require the approval of a
mortgagee.
(2) Refinancing of debt.--Refinancing of all or
part of the debt on a project. If the refinancing
involves a mortgage that will continue to be insured
under the National Housing Act, the refinancing shall
be documented through amendment of the existing
insurance contract and not through a new insurance
contract.
(3) Mortgage insurance.--Providing FHA multifamily
mortgage insurance, reinsurance orother credit
enhancement alternatives, including multifamily risk-sharing mortgage
programs, as provided under section 542 of the Housing and Community
Development Act of 1992. Any limitations on the number of units
available for mortgage insurance under section 542 shall not apply to
eligible multifamily housing projects. Any credit subsidy costs of
providing mortgage insurance shall be paid from the Liquidating Account
of the General Insurance Fund or the Special Risk Insurance Fund and
shall not be subject to any limitation on appropriations.
(4) Credit enhancement.--Any additional State or
local mortgage credit enhancements and risk-sharing
arrangements may be established with State or local
housing finance agencies, the Federal Housing Finance
Board, the Federal National Mortgage Association, and
the Federal Home Loan Mortgage Corporation, to a
modified or refinanced first mortgage.
(5) Compensation of third parties.--Consistent with
the portfolio restructuring agreement, entering into
agreements, incurring costs, or making payments,
including incentive agreements designed to reward
superior performance in meeting the purposes of this
Act, as may be reasonably necessary, to compensate the
participation of participating administrative entities
and other parties in undertaking actions authorized by
this subtitle. Upon request to the Secretary,
participating administrative entities that are
qualified under the United States Housing Act of 1937
to serve as contract administrators shall be the
contract administrators under section 8 of the United
States Housing Act of 1937 for purposes of any
contracts entered into as part of anapproved mortgage
restructuring and rental assistance sufficiency plan. Subject to the
availability of amounts provided in advance in appropriations Acts for
administrative fees under section 8 of the United States Housing Act of
1937, such amounts may be used to compensate participating
administrative entities for compliance monitoring costs incurred under
section 519.
(6) Use of project accounts.--Applying any residual
receipts, replacement reserves, and any other project
accounts not required for project operations, to
maintain the long-term affordability and physical
condition of the property or of other eligible
multifamily housing projects. The participating
administrative entity may expedite the acquisition of
residual receipts, replacement reserves, or other such
accounts, by entering into agreements with owners of
housing covered by an expiring contract to provide an
owner with a share of the receipts, not to exceed 10
percent, in accordance with guidelines established by
the Secretary.
(7) Rehabilitation needs.--
(A) In general.--Assisting in addressing
the rehabilitation needs of the project.
Rehabilitation may be paid from the residual
receipts, replacement reserves, or any other
project accounts not required for project
operations, or, as provided in appropriations
Acts and subject to the control of the
Secretary of applicable accounts in the
Treasury of the United States, from budget
authority provided for increases in the budget
authority for assistance contracts under
section 8 of the United States Housing Act of
1937, the rehabilitation grant program
established under section 236(s) of the
National Housing Act, or through the debt
restructuring transaction. Rehabilitation under
this paragraph shall only be for the purpose of
restoring the project to a non-luxury standard
adequate for the rental market intended at the
original approval of the project-based
assistance.
(B) Contribution.--Each owner or purchaser
of a project to be rehabilitated under an
approved mortgage restructuring and rental
assistance sufficiency plan shall contribute,
from non-project resources, not less than 25
percent of the amount of rehabilitation
assistance received, except that the
participating administrative entity may provide
an exception from the requirement of this
subparagraph for housing cooperatives.
(c) Role of FNMA and FHLMC.--Section 1335 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992
(12 U.S.C. 4565) is amended--
(1) in paragraph (3), by striking ``and'' at the
end;
(2) paragraph (4), by striking the period at the
end and inserting ``; and'';
(3) by striking ``To meet'' and inserting the
following:
``(a) In General.--To meet''; and
(4) by adding at the end the following:
``(5) assist in maintaining the affordability of
assisted units in eligible multifamily housing projects
with expiring contracts, as defined under the
Multifamily Assisted Housing Reform and Affordability
Act of 1997.
``(b) Affordable Housing Goals.--Actions taken under
subsection (a)(5) shall constitute part of the contribution of
each entity in meeting its affordable housing goals under
sections 1332, 1333, and 1334 for any fiscal year, as
determined by the Secretary.''.
(d) Prohibition on Equity Sharing by the Secretary.--The
Secretary is prohibited from participating in any equity
agreement or profit-sharing agreement in conjunction with any
eligible multifamily housing project.
(e) Conflict of Interest Guidelines.--The Secretary may
establish guidelines to prevent conflicts of interest by a
participating administrative entity that provides, directly or
through risk-sharing arrangements, any form of credit
enhancement or financing pursuant to subsections (b)(3) or
(b)(4) or to prevent conflicts of interest by any other person
or entity under this subtitle.
SEC. 518. MANAGEMENT STANDARDS.
Each participating administrative entity shall establish
management standards, including requirements governing
conflicts of interest between owners, managers, contractors
with an identity of interest, pursuant to guidelines
established by the Secretary and consistent with industry
standards.
SEC. 519. MONITORING OF COMPLIANCE.
(a) Compliance Agreements.--(1) Pursuant to regulations
issued by the Secretary under section 522(a), each
participating administrative entity, through binding
contractual agreements with owners and otherwise, shall ensure
long-term compliance with the provisions of this subtitle. Each
agreement shall, at a minimum, provide for--
(A) enforcement of the provisions of this subtitle;
and
(B) remedies for the breach of those provisions.
(2) If the participating administrative entity is not
qualified under the United States Housing Act of 1937 to be a
section 8 contract administrator or fails to perform its duties
under the portfolio restructuring agreement, the Secretary
shall have the right to enforce the agreement.
(b) Periodic Monitoring.--
(1) In general.--Not less than annually, each
participating administrative entity that is qualified
to be the section 8 contract administrator shall review
the status of all multifamily housing projects for
which a mortgage restructuring and rental assistance
sufficiency plan has been implemented.
(2) Inspections.--Each review under this subsection
shall include onsite inspection to determine compliance
with housing codes and other requirements as provided
in this subtitle and the portfolio restructuring
agreements.
(3) Administration.--If the participating
administrative entity is not qualified under the United
States Housing Act of 1937 to be a section 8 contract
administrator, either the Secretary or a qualified
State or local housing agency shall be responsible for
the review required by this subsection.
(c) Audit by the Secretary.--The Comptroller General of the
United States, the Secretary, and the Inspector General of the
Department of Housing and Urban Development may conduct an
audit at any time of any multifamily housing project for which
a mortgage restructuring and rental assistance sufficiency plan
has been implemented.
SEC. 520. REPORTS TO CONGRESS.
(a) Annual Review.--In order to ensure compliance with this
subtitle, the Secretary shall conduct an annual review and
report to the Congress on actions taken under this subtitle and
the status of eligible multifamily housing projects.
(b) Semiannual Review.--Not less than semiannually during
the 2-year period beginning on the date of the enactment of
this Act and not less than annually thereafter, the Secretary
shall submit reports to the Committee on Banking and Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate stating, for
such periods, the total number of projects identified by
participating administrative entities under each of clauses (i)
and (ii) of subparagraph (C).
SEC. 521. GAO AUDIT AND REVIEW.
(a) Initial Audit.--Not later than 18 months after the
effective date of final regulations promulgated under this
part, the Comptroller General of the United States shall
conduct an audit to evaluate eligiblemultifamily housing
projects and the implementation of mortgage restructuring and rental
assistance sufficiency plans.
(b) Report.--
(1) In general.--Not later than 18 months after the
audit conducted under subsection (a), the Comptroller
General of the United States shall submit to Congress a
report on the status of eligible multifamily housing
projects and the implementation of mortgage
restructuring and rental assistance sufficiency plans.
(2) Contents.--The report submitted under paragraph
(1) shall include--
(A) a description of the initial audit
conducted under subsection (a); and
(B) recommendations for any legislative
action to increase the financial savings to the
Federal Government of the restructuring of
eligible multifamily housing projects balanced
with the continued availability of the maximum
number of affordable low-income housing units.
SEC. 522. REGULATIONS.
(a) Rulemaking and Implementation.--
(1) Interim regulations.--The Director shall issue
such interim regulations as may be necessary to
implement this subtitle and the amendments made by this
subtitle with respect to eligible multifamily housing
projects covered by contracts described in section
512(2)(B) that expire in fiscal year 1999 or
thereafter. If, before the expiration of such period,
the Director has not been appointed, the Secretary
shall issue such interim regulations.
(2) Final regulations.--The Director shall issue
final regulations necessary to implement this subtitle
and the amendments made by this subtitle with respect
to eligible multifamily housing projects covered by
contracts described in section 512(2)(B) that expire in
fiscal year 1999 or thereafter before the later of (A)
the expiration of the 12-month period beginning upon
the date of the enactment of this Act, and (B) the 3-
month period beginning upon the appointment of the
Director under subtitle B.
(3) Factors for consideration.--Before the
publication of the final regulations under paragraph
(2), in addition to public comments invited in
connection with publication of the interim rule, the
Secretary shall--
(A) seek recommendations on the
implementation of sections 513(b) and 515(c)(1)
from organizations representing--
(i) State housing finance agencies
and local housing agencies;
(ii) other potential participating
administering entities;
(iii) tenants;
(iv) owners and managers of
eligible multifamily housing projects;
(v) States and units of general
local government; and
(vi) qualified mortgagees; and
(B) convene not less than 3 public forums
at which the organizations making
recommendations under subparagraph (A) may
express views concerning the proposed
disposition of the recommendations.
(b) Transition Provision for Contracts Expiring in Fiscal
Year 1998.--Notwithstanding any other provision of law, the
Secretary shall apply all the terms of section 211 and section
212 of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act,
1997 (except for section 212(h)(1)(G) and the limitation in
section 212(k)) contracts for project-based assistance that
expire during fiscal year 1998 (in the same manner that such
provisions apply to expiring contracts defined in section
212(a)(3) of such Act), except that section 517(a) of the Act
shall apply to mortgages on projects subject to such contracts.
SEC. 523. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Calculation of Limit on Project-Based Assistance.--
Section 8(d) of the United States Housing Act of 1937 (42
U.S.C. 1437f(d)) is amended by adding at the end the following:
``(5) Calculation of limit.--Any contract entered
into under section 514 of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 shall be
excluded in computing the limit on project-based
assistance under this subsection.''.
(b) Partial Payment of Claims on Multifamily Housing
Projects.--Section 541 of the National Housing Act (12 U.S.C.
1735f-19) is amended--
(1) in subsection (a), in the subsection heading,
by striking ``Authority'' and inserting ``Defaulted
Mortgages'';
(2) by redesignating subsection (b) as subsection
(c); and
(3) by inserting after subsection (a) the
following:
``(b) Existing Mortgages.--Notwithstanding any other
provision of law, the Secretary, in connection with a mortgage
restructuring under section 514 of the Multifamily Assisted
Housing Reform and Affordability Act of 1997, may make a 1
time, nondefault partial payment of the claim under the
mortgage insurance contract, which shall include a
determination by the Secretary or the participating
administrative entity, in accordance with the Multifamily
Assisted Housing Reform and Affordability Act of 1997, of the
market value of the project and a restructuring of the
mortgage, under such terms and conditions as are permitted by
section 517(a) of such Act.''.
(c) Reuse and Rescission of Certain Recaptured Budget
Authority.--Section 8(bb) of the United States Housing Act of
1937 (42 U.S.C. 1437f(bb) is amended--
(1) by inserting after ``(bb)'' the following:
``Transfer, Reuse, and Rescission of Budget
Authority.--(1)''; and
(2) by inserting the following new paragraph at the
end:
``(2) Reuse and Rescission of Certain Recaptured Budget
Authority.--Notwithstanding paragraph (1), if a project-based
assistance contract for an eligible multifamily housing project
subject to actions authorized under title I is terminated or
amended as part of restructuring under section 517 of the
Multifamily Assisted Housing Reform and Affordability Act of
1997, the Secretary shall recapture the budget authority not
required for the terminated or amended contract and use such
amounts as are necessary to provide housing assistance for the
same number of families covered by such contract for the
remaining term of such contract, under a contract providing for
project-based or tenant-based assistance. The amount of budget
authority saved as a result of the shift to project-based or
tenant-based assistance shall be rescinded.''.
(d) Section 8 Contract Renewals.--Section 405(a) of the
Balanced Budget Downpayment Act, I (42 U.S.C. 1437f note) is
amended by striking ``For'' and inserting ``Notwithstanding
part 24 of title 24 of the Code of Federal Regualtions, for''.
(e) Renewal Upon Request of Owner.--Section 211(b)(3) of
the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1997
(Public Law 104-204; 110 Stat. 2896) is amended--
(1) by striking the paragraph heading and inserting
the following:
``(3) Exemption of certain other projects.--''; and
(2) by striking ``section 202 projects, section 811
projects and section 515 projects'' and inserting
``section 202 projects, section 515 projects, projects
with contracts entered into pursuant to section 441 of
the Stewart B. McKinney Homeless Assistance Act, and
projects with rents that exceed 100 percent of fair
market rent for the market area, but that are less than
rents for comparable projects''.
(f) Extension of Demonstration Contract Period.--Section
212(g) of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act,
1997 (Public Law 104-204) is amended--
(1) by inserting ``(1)'' after ``(g)'';
(2) by inserting before the period at the end the
following: ``or in paragraph (2)''; and
(3) by adding at the end the following:
``(2) The Secretary may renew a demonstration contract for
an additional period of not to exceed 120 days, if--
``(A) the contract was originally executed before
February 1, 1997, and the Secretary determines, in the
sole discretion of the Secretary, that the renewal
period for the contract needs to exceed 1 year, due to
delay of publication of the Secretary's demonstration
program guidelines until January 23, 1997 (not to
exceed 21 projects); or
``(B) the contract was originally executed before
October 1, 1997, in connection with a project that has
been identified for restructuring under the joint
venture approach described in section VII.B.2. of the
Secretary's demonstration program guidelines, and the
Secretary determines, in the sole discretion of the
Secretary, that the renewal period for the contract
needs to exceed 1 year, due to delay in implementation
of the joint venture agreement required by the
guidelines (not to exceed 25 projects).''.
SEC. 524. SECTION 8 CONTRACT RENEWALS.
(a) Section 8 Contract Renewal Authority.--
(1) In general.--Notwithstanding part 24 of title
24 of the Code of Federal Regulations and subject to
section 516 of this subtitle, for fiscal year 1999 and
henceforth, the Secretary may use amounts available for
the renewal of assistance under section 8 of the United
States Housing Act of 1937, upon termination or
expiration of a contract for assistance under section 8
(other than a contract for tenant-based assistance and
notwithstanding section 8(v) of such Act for loan
management assistance), to provide assistance under
section 8 of such Act at rent levels that do not exceed
comparable market rents for the market area. The
assistance shall be provided in accordance with terms
and conditions prescribed by the Secretary.
(2) Exception projects.--Notwithstanding paragraph
(1), upon the request of the owner, the Secretary shall
renew an expiring contract in accordance with terms and
conditions prescribed by the Secretary at the lesser of
(i) existing rents, adjusted by an operating cost,
adjustment factor established by the Secretary, (ii) a
level that provides income sufficient to support a
budget-based rent (including a budget-based rent
adjustment if justified by reasonable and expected
operating expenses), or (iii) in the case of a contract
under the moderate rehabilitation program, other than a
moderate rehabilitation contract under section 441 of
the Stewart B. McKinney Homeless Assistance Act, the
base rent adjusted by an operating cost adjustment
factor established by the Secretary, for the following
categories of multifamily housing projects--
(A) projects for which the primary
financing or mortgage insurance was provided by
a unit of State government or a unit of general
local government (or an agency or
instrumentality of either) and is not insured
under the National Housing Act;
(B) projects for which the primary
financing was provided by a unit of State
government or a unit or general local
government (or an agency or instrumentality of
either) and the financing involves mortgage
insurance under the National Housing Act, such
that the implementation of a mortgage
restructuring and rental assistance sufficiency
plan under this Act is in conflict with
applicable law or agreements governing such
financing;
(C) projects financed under section 202 of
the Housing Act of 1959 or section 515 of the
Housing Act of 1949;
(D) projects that have an expiring contract
under section 8 of the United States Housing
Act of 1937 pursuant to section 441 of the
Stewart B. McKinney Homeless Assistance Act;
and
(E) projects that do not qualify as
eligible multifamily housing projects pursuant
to section 512(2) of this subtitle.
Subtitle B--Miscellaneous Provisions
SEC. 531. REHABILITATION GRANTS FOR CERTAIN INSURED PROJECTS.
Section 236 of the National Housing Act (12 U.S.C. 1715z-1)
is amended by adding at the end the following:
``(s) Grant Authority.--
``(1) In general.--The Secretary may make grants
for the capital costs of rehabilitation to owners of
projects that meet the eligibility and other criteria
set forth in, and in accordance with, this subsection.
``(2) Project eligibility.--A project may be
eligible for capital grant assistance under this
subsection--
``(A) if--
``(i) the project is or was insured
under any provision of title II of the
National Housing Act;
``(ii) the project was assisted
under section 8 of the United States
Housing Act of 1937 on the date of
enactment of the Multifamily Assisted
Housing Reform and Affordability Act of
1997; and
``(iii) the project mortgage was
not held by a State agency as of the
date of enactment of the Multifamily
Assisted Housing Reform and
Affordability Act of 1997;
``(B) if the project owner agrees to
maintain the housing quality standards as
required by the Secretary;
``(C)(i) if the Secretary determines that
the owner or purchaser of the project has not
engaged in material adverse financial or
managerial actions or omissions with regard to
such project; or
``(ii) if the Secretary elects to make such
determination, that the owner or purchaser of
the project has not engaged in material adverse
financial or managerial actions or omissions
with regard to other projects of such owner or
purchaser that are federally-assisted or
financed with a loan from, or mortgage insured
or guaranteed by, an agency of the Federal
government;
``(iii) material adverse financial or
managerial actions or omissions, as the terms
are used in this subparagraph, include--
``(I) materially violating any
Federal, State, or local law or
regulation with regard to this project
or any other federally assisted
project, after receipt of notice and an
opportunity to cure;
``(II) materially breaching a
contract for assistance under section 8
of the United States Housing Act of
1937, after receipt of notice and an
opportunity to cure;
``(III) materially violating any
applicable regulatory or other
agreement with the Secretary or a
participating administrative entity,
after receipt of notice and an
opportunity to cure;
``(IV) repeatedly failing to make
mortgage payments at times when project
income was sufficient to maintain and
operate the property;
``(V) materially failing to
maintain the property according to
housing quality standards after receipt
of notice and a reasonable opportunity
to cure; or
``(VI) committing any act or
omission that would warrant suspension
or debarment by the Secretary; and
``(iv) the term `owner' as used in this
subparagraph, in addition to it having the same
meaning as in section 8(f) of the United States
Housing Act of 1937, also means an affiliate of
the owner; the term `purchaser' as used in this
subsection means any private person or entity,
including a cooperative, an agency of the
Federal Government, or a public housing agency,
that, upon purchase of the project, would have
the legal right to lease or sublease dwelling
units in the project, and also means an
affiliate of the purchaser; the terms
`affiliate of the owner' and `affiliate of the
purchaser' means any person or entity
(including, but not limited to, a general
partner or managing member, or an officer of
either) that controls an owner orpurchaser, is
controlled by an owner or purchaser, or is under common control with
the owner or purchaser; the term `control' means the direct or indirect
power (under contract, equity ownership, the right to vote or determine
a vote, or otherwise) to direct the financial legal, beneficial or
other interests of the owner or purchaser; and
``(D) if the project owner demonstrates to
the satisfaction of the Secretary--
``(i) using information in a
comprehensive needs assessment, that
capital grant assistance is needed for
rehabilitation of the project; and
``(ii) that project income is not
sufficient to support such
rehabilitation.
``(3) Eligible purposes.--The Secretary may make
grants to the owners of eligible projects for the
purposes of--
``(A) payment into project replacement
reserves;
``(B) debt service payments on non-Federal
rehabilitation loans; and
``(C) payment of nonrecurring maintenance
and capital improvements, under such terms and
conditions as are determined by the Secretary.
``(4) Grant agreement.--
``(A) In general.--The Secretary shall
provide in any grant agreement under this
subsection that the grant shall be terminated
if the project fails to meet housing quality
standards, as applicable on the dateof
enactment of the Multifamily Assisted Housing Reform and Affordability
Act of 1997, or any successor standards for the physical conditions of
projects, as are determined by the Secretary.
``(B) Affordability and use clauses.--The
Secretary shall include in a grant agreement
under this subsection a requirement for the
project owners to maintain such affordability
and use restrictions as the Secretary
determines to be appropriate.
``(C) Other terms.--The Secretary may
include in a grant agreement under this
subsection such other terms and conditions as
the Secretary determines to be necessary.
``(5) Delegation.--
``(A) In general.--In addition to the
authorities set forth in subsection (p), the
Secretary may delegate to State and local
governments the responsibility for the
administration of grants under this subsection.
Any such government may carry out such
delegated responsibilities directly or under
contracts.
``(B) Administration costs.--In addition to
other eligible purposes, amounts of grants
under this subsection may be made available for
costs of administration under subparagraph (A).
``(6) Funding.--
``(A) In general.--For purposes of carrying
out this subsection, the Secretary may make
available amounts that are unobligated amounts
for contracts for interest reduction payments--
``(i) that were previously
obligated for contracts for interest
reduction payments under this section
until the insured mortgage under this
section was extinguished;
``(ii) that become available as a
result of the outstanding principal
balance of a mortgage having been
written down;
``(iii) that are uncommitted
balances within the limitation on
maximum payments that may have been,
before the date of enactment of the
Multifamily Assisted Housing Reform and
Affordability Act of 1997, permitted in
any fiscal year; or
``(iv) that become available from
any other source.
``(B) Liquidation authority.--The Secretary
may liquidate obligations entered into under
this subsection under section 1305(10) of title
31, United States Code.
``(C) Capital grants.--In making capital
grants under the terms of this subsection,
using the amounts that the Secretary has
recaptured from contracts for interest
reduction payments, the Secretary shall ensure
that the rates and amounts of outlays do not at
any time exceed the rates and amounts of
outlays that would have been experienced if the
insured mortgage had not been extinguished or
the principal amount had not been written down,
and the interest reduction payments that the
Secretary has recaptured had continued in
accordance with the terms in effect immediately
prior to such extinguishment or write-down.''.
SEC. 532. GAO REPORT ON SECTION 8 RENTAL ASSISTANCE FOR MULTIFAMILY
HOUSING PROJECTS.
Not later than the expiration of the 18-month period
beginning on the date of the enactment of this Act, the
Comptroller General of the United States shall submit a report
to the Congress analyzing--
(1) the housing projects for which project-based
assistance is provided under section 8 of the United
States Housing Act of 1937, but which are not subject
to a mortgage insured or held by the Secretary under
the National Housing Act;
(2) how State and local housing finance agencies
have benefited financially from the rental assistance
program under section 8 of the United States Housing
Act of 1937, including any benefits from fees, bond
financings, and mortgage refinancings; and
(3) the extent and effectiveness of State and local
housing finance agencies oversight of the physical and
financial management and condition of multifamily
housing projects for which project-based assistance is
provided under section 8 of the United States Housing
Act of 1937.
Subtitle C--Enforcement Provisions
SEC. 541. IMPLEMENTATION.
(a) Issuance of Necessary Regulations.--Notwithstanding
section 7(o) of the Department of Housing and Urban Development
Act or part 10 of title 24, Code of Federal Regulations (as in
existence on the date of enactment of this Act), the Secretary
shall issue such regulations as the Secretary determines to be
necessary to implement this subtitle and the amendments made by
this subtitle in accordance with section 552 or 553 of title 5,
United States Code, as determined by the Secretary.
(b) Use of Existing Regulations.--In implementing any
provision of this subtitle, the Secretary may, in the
discretion of the Secretary, provide for the use of existing
regulations to the extent appropriate, without rulemaking.
SEC. 542. INCOME VERIFICATION.
(a) Reinstitution of Requirements Regarding HUD Access to
Certain Information of State Agencies.--
(1) In general.--Section 303(i) of the Social
Security Act is amended by striking paragraph (5).
(2) Effective date.--The amendment made by this
subsection shall apply to any request for information
made after the date of the enactment of this Act.
(b) Repeal of Termination Regarding Housing Assistance
Programs.--Section 6103(l)(7)(D) of the Internal Revenue Code
of 1986 is amended by striking the last sentence.
Part 1--FHA Single Family and Multifamily Housing
SEC. 551. AUTHORIZATION TO IMMEDIATELY SUSPEND MORTGAGEES.
Section 202(c)(3)(C) of the National Housing Act (12 U.S.C.
1708(c)(3)(C)) is amended by inserting after the first sentence
the following: ``Notwithstanding paragraph (4)(A), a suspension
shall be effective upon issuance by the Board if the Board
determines that there exists adequate evidence that immediate
action is required to protect the financial interests of the
Department or the public.''.
SEC. 552. EXTENSION OF EQUITY SKIMMING TO OTHER SINGLE FAMILY AND
MULTIFAMILY HOUSING PROGRAMS.
Section 254 of the National Housing Act (12 U.S.C. 1715z-
19) is amended to read as follows:
``SEC. 254. EQUITY SKIMMING PENALTY.
``(a) In General.--Whoever, as an owner, agent, or manager,
or who is otherwise in custody, control, or possession of a
multifamily project or a 1- to 4-family residence that is
security for a mortgage note that is described in subsection
(b), willfully uses or authorizes the use of any part of the
rents, assets, proceeds, income, or other funds derived from
property covered by that mortgage note for any purpose other
than to meet reasonable and necessary expenses that include
expenses approved by the Secretary if such approval is
required, in a period during which the mortgage note is in
default or the project is in a nonsurplus cash position, as
defined by the regulatory agreement covering the property, or
the mortgagor has failed to comply with the provisions of such
other form of regulatory control imposed by the Secretary,
shall be fined not more than $500,000, imprisoned not more than
5 years, or both.
``(b) Mortgage Notes Described.--For purposes of subsection
(a), a mortgage note is described in this subsection if it--
``(1) is insured, acquired, or held by the
Secretary pursuant to this Act;
``(2) is made pursuant to section 202 of the
Housing Act of 1959 (including property still subject
to section 202 program requirements that existed before
the date of enactment of the Cranston-Gonzalez National
Affordable Housing Act); or
``(3) is insured or held pursuant to section 542 of
the Housing and Community Development Act of1992, but
is not reinsured under section 542 of the Housing and Community
Development Act of 1992.''.
SEC. 553. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND OTHER
PARTICIPANTS IN FHA PROGRAMS.
(a) Change to Section Title.--Section 536 of the National
Housing Act (12 U.S.C. 1735f-14) is amended by striking the
section heading and the section designation and inserting the
following:
``SEC. 536. CIVIL MONEY PENALTIES AGAINST MORTGAGEES, LENDERS, AND
OTHER PARTICIPANTS IN FHA PROGRAMS.''.
(b) Expansion of Persons Eligible for Penalty.--Section
536(a) of the National Housing Act (12 U.S.C. 1735f-14(a)) is
amended--
(1) in paragraph (1), by striking the first
sentence and inserting the following: ``If a mortgagee
approved under the Act, a lender holding a contract of
insurance under title I, or a principal, officer, or
employee of such mortgagee or lender, or other person
or entity participating in either an insured mortgage
or title I loan transaction under this Act or providing
assistance to the borrower in connection with any such
loan, including sellers of the real estate involved,
borrowers, closing agents, title companies, real estate
agents, mortgage brokers, appraisers, loan
correspondents and dealers, knowingly and materially
violates any applicable provision of subsection (b),
the Secretary may impose a civil money penalty on the
mortgagee or lender, or such other person or entity, in
accordance with this section. The penalty under this
paragraph shall be in addition to any other available
civil remedy or any available criminal penalty, and may
be imposed whether or not the Secretary imposes other
administrative sanctions.''; and
(2) in paragraph (2)--
(A) in the first sentence, by inserting
``or such other person or entity'' after
``lender''; and
(B) in the second sentence, by striking
``provision'' and inserting ``the provisions''.
(c) Additional Violations for Mortgagees, Lenders, and
Other Participants in FHA Programs.--Section 536(b) of the
National Housing Act (12 U.S.C. 1735f-14(b)) is amended--
(1) by redesignating paragraph (2) as paragraph
(3);
(2) by inserting after paragraph (1) the following:
``(2) The Secretary may impose a civil money
penalty under subsection (a) for any knowing and
material violation by a principal, officer, or employee
of a mortgagee or lender, or other participants in
either an insured mortgage or title I loan transaction
under this Act or provision of assistance to the
borrower in connection with any such loan, including
sellers of the real estate involved, borrowers, closing
agents, title companies, real estate agents, mortgage
brokers, appraisers, loan correspondents, and dealers
for--
``(A) submission to the Secretary of
information that was false, in connection with
any mortgage insured under this Act, or any
loan that is covered by a contract of insurance
under title I of this Act;
``(B) falsely certifying to the Secretary
or submitting to the Secretary a false
certification by another person or entity; or
``(C) failure by a loan correspondent or
dealer to submit to the Secretary information
which is required by regulations or directives
in connection with any loan that is covered by
a contract of insurance under title I.''; and
(3) in paragraph (3), as redesignated, by striking
``or paragraph (1)(F)'' and inserting ``or (F), or
paragraph (2) (A), (B), or (C)''.
(d) Conforming and Technical Amendments.--Section 536 of
the National Housing Act (12 U.S.C. 1735f-14) is amended--
(1) in subsection (c)(1)(B), by inserting after
``lender'' the following: ``or such other person or
entity'';
(2) in subsection (d)(1)--
(A) by inserting ``or such other person or
entity'' after ``lender''; and
(B) by striking ``part 25'' and inserting
``parts 24 and 25''; and
(3) in subsection (e), by inserting ``or such other
person or entity'' after ``lender'' each place that
term appears.
Part 2--FHA Multifamily Provisions
SEC. 561. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS, OFFICERS,
DIRECTORS, AND CERTAIN MANAGING AGENTS OF
MULTIFAMILY PROJECTS.
(a) Civil Money Penalties Against Multifamily Mortgagors.--
Section 537 of the National Housing Act (12 U.S.C. 1735f-15) is
amended--
(1) in subsection (b)(1), by striking ``on that
mortgagor'' and inserting the following: ``on that
mortgagor, on a general partner of a partnership
mortgagor, or on any officer or director of a corporate
mortgagor'';
(2) in subsection (c)--
(A) by striking the subsection heading and
inserting the following:
``(c) Other Violations.--''; and
(B) in paragraph (1)--
(i) by striking ``Violations.--The
Secretary may'' and all that follows
through the colon and inserting the
following:
``(A) Liable parties.--The Secretary may
also impose a civil money penalty under this
section on--
``(i) any mortgagor of a property
that includes 5 or more living units
and that has a mortgage insured,
coinsured, or held pursuant to this
Act;
``(ii) any general partner of a
partnership mortgagor of such property;
``(iii) any officer or director of
a corporate mortgagor;
``(iv) any agent employed to manage
the property that has an identity of
interest with the mortgagor, with the
general partner of a partnership
mortgagor, or with any officer or
director of a corporate mortgagor of
such property; or
``(v) any member of a limited
liability company that is the mortgagor
of such property or is the general
partner of a limited partnership
mortgagor or is a partner of a general
partnership mortgagor.
``(B) Violations.--A penalty may be imposed
under this section upon any liable party under
subparagraph (A) that knowingly and materially
takes any of the following actions:'';
(ii) in subparagraph (B), as
designated by clause (i), by
redesignating the subparagraph
designations (A) through (L) as clauses
(i) through (xii), respectively;
(iii) by adding after clause (xii),
as redesignated by clause (ii), the
following:
``(xiii) Failure to maintain the
premises, accommodations, any living
unit in the project, and the grounds
and equipment appurtenant thereto in
good repair and condition in accordance
with regulations and requirements of
the Secretary, except that nothing in
this clause shall have the effect of
altering the provisions of an existing
regulatory agreement or federally
insured mortgage on the property.
``(xiv) Failure, by a mortgagor, a
general partner of a partnership
mortgagor, or an officer or director of
a corporate mortgagor, to provide
management for the project that is
acceptable to the Secretary pursuant to
regulations and requirements of the
Secretary.
``(xv) Failure to provide access to
the books, records, and accounts
related to the operations of the
mortgaged property and of the
project.''; and
(iv) in the last sentence, by
deleting ``of such agreement'' and
inserting ``of this subsection'';
(3) in subsection (d)--
(A) in paragraph (1)(B), by inserting after
``mortgagor'' the following: ``, general
partner of a partnership mortgagor, officer or
directorof a corporate mortgagor, or identity
of interest agent employed to manage the property''; and
(B) by adding at the end the following:
``(5) Payment of penalty.--No payment of a civil
money penalty levied under this section shall be
payable out of project income.'';
(4) in subsection (e)(1), by deleting ``a
mortgagor'' and inserting ``an entity or person'';
(5) in subsection (f), by inserting after
``mortgagor'' each place such term appears the
following: ``, general partner of a partnership
mortgagor, officer or director of a corporate
mortgagor, or identity of interest agent employed to
manage the property'';
(6) by striking the heading of subsection (f) and
inserting the following: ``Civil Money Penalties
Against Multifamily Mortgagors, General Partners of
Partnership Mortgagors, Officers and Directors of
Corporate Mortgagors, and Certain Managing Agents'';
and
(7) by adding at the end the following:
``(k) Identity of Interest Managing Agent.--In this
section, the terms `agent employed to manage the property that
has an identity of interest' and `identity of interest agent'
mean an entity--
``(1) that has management responsibility for a
project;
``(2) in which the ownership entity, including its
general partner or partners (if applicable) and its
officers or directors (if applicable), has an ownership
interest; and
``(3) over which the ownership entity exerts
effective control.''.
(b) Implementation.--
(1) Public comment.--The Secretary shall implement
the amendments made by this section by regulation
issued after notice and opportunity for public comment.
The notice shall seek comments primarily as to the
definitions of the terms ``ownership interest in'' and
``effective control'', as those terms are used in the
definition of the terms ``agent employed to manage the
property that has an identity of interest'' and
``identity of interest agent''.
(2) Timing.--A proposed rule implementing the
amendments made by this section shall be published not
later than 1 year after the date of enactment of this
Act.
(c) Applicability of Amendments.--The amendments made by
subsection (a) shall apply only with respect to--
(1) violations that occur on or after the effective
date of the final regulations implementing the
amendments made by this section; and
(2) in the case of a continuing violation (as
determined by the Secretary of Housing and Urban
Development), any portion of a violation that occurs on
or after that date.
SEC. 562. CIVIL MONEY PENALTIES FOR NONCOMPLIANCE WITH SECTION 8 HAP
CONTRACTS.
(a) Basic Authority.--Title I of the United States Housing
Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
(1) by designating the second section designated as
section 27 (as added by section 903(b) of Public Law
104-193 (110 Stat. 2348)) as section 28; and
(2) by adding at the end the following:
``SEC. 29. CIVIL MONEY PENALTIES AGAINST SECTION 8 OWNERS.
``(a) In General.--
``(1) Effect on other remedies.--The penalties set
forth in this section shall be in addition to any other
available civil remedy or any available criminal
penalty, and may be imposed regardless of whether the
Secretary imposes other administrative sanctions.
``(2) Failure of secretary.--The Secretary may not
impose penalties under this section for a violation, if
a material cause of the violation is the failure of the
Secretary, an agent of the Secretary, or a public
housing agency to comply with an existing agreement.
``(b) Violations of Housing Assistance Payment Contracts
for Which Penalty May Be Imposed.--
``(1) Liable parties.--The Secretary may impose a
civil money penalty under this section on--
``(A) any owner of a property receiving
project-based assistance under section 8;
``(B) any general partner of a partnership
owner of that property; and
``(C) any agent employed to manage the
property that has an identity of interest with
the owner or the general partner of a
partnership owner of the property.
``(2) Violations.--A penalty may be imposed under
this section for a knowing and material breach of a
housing assistance payments contract, including the
following--
``(A) failure to provide decent, safe, and
sanitary housing pursuant to section 8; or
``(B) knowing or willful submission of
false, fictitious, or fraudulent statements or
requests for housing assistance payments to the
Secretary or to any department or agency of the
United States.
``(3) Amount of penalty.--The amount of a penalty
imposed for a violation under this subsection, as
determined by the Secretary, may not exceed $25,000 per
violation.
``(c) Agency Procedures.--
``(1) Establishment.--The Secretary shall issue
regulations establishing standards and procedures
governing the imposition of civil money penalties under
subsection (b). These standards and procedures--
``(A) shall provide for the Secretary or
other department official to make the
determination to impose the penalty;
``(B) shall provide for the imposition of a
penalty only after the liable party has
received notice and the opportunity for a
hearing on the record; and
``(C) may provide for review by the
Secretary of any determination or order, or
interlocutory ruling, arising from a hearing
and judicial review, as provided under
subsection (d).
``(2) Final orders.--
``(A) In general.--If a hearing is not
requested before the expiration of the 15-day
period beginning on the date on which the
notice of opportunity for hearing is received,
the imposition of a penalty under subsection
(b) shall constitute a final and unappealable
determination.
``(B) Effect of review.--If the Secretary
reviews the determination or order, the
Secretary may affirm, modify, or reverse that
determination or order.
``(C) Failure to review.--If the Secretary
does not review that determination or order
before the expiration of the 90-day period
beginning on the date on which the
determination or order is issued, the
determination or order shall be final.
``(3) Factors in determining amount of penalty.--In
determining the amount of a penalty under subsection
(b), the Secretary shall take into consideration--
``(A) the gravity of the offense;
``(B) any history of prior offenses by the
violator (including offenses occurring before
the enactment of this section);
``(C) the ability of the violator to pay
the penalty;
``(D) any injury to tenants;
``(E) any injury to the public;
``(F) any benefits received by the violator
as a result of the violation;
``(G) deterrence of future violations; and
``(H) such other factors as the Secretary
may establish by regulation.
``(4) Payment of penalty.--No payment of a civil
money penalty levied under this section shall be
payable out of project income.
``(d) Judicial Review of Agency Determination.--Judicial
review of determinations made under this section shall be
carried out in accordance with section 537(e) of the National
Housing Act.
``(e) Remedies for Noncompliance.--
``(1) Judicial intervention.--
``(A) In general.--If a person or entity
fails to comply with the determination or order
of the Secretary imposing a civil money penalty
under subsection (b), after the determination
or order is no longer subject to review as
provided by subsections (c) and (d), the
Secretary may request the Attorney General of
the United States to bring an action in an
appropriate United States district court to
obtain a monetary judgment against that person
or entity and such other relief as may be
available.
``(B) Fees and expenses.--Any monetary
judgment awarded in an action brought under
this paragraph may, in the discretion of the
court, include the attorney's fees and other
expenses incurred by the United States in
connection with the action.
``(2) Nonreviewability of determination or order.--
In an action under this subsection, the validity and
appropriateness of the determination or order of the
Secretary imposing the penalty shall not be subject to
review.
``(f) Settlement by Secretary.--The Secretary may
compromise, modify, or remit any civil money penalty which may
be, or has been, imposed under this section.
``(g) Deposit of Penalties.--
``(1) In general.--Notwithstanding any other
provision of law, if the mortgage covering the property
receiving assistance under section 8 is insured or
formerly insured by the Secretary, the Secretary shall
apply all civil money penalties collected under this
section to the appropriate insurance fund or funds
established under this Act, as determined by the
Secretary.
``(2) Exception.--Notwithstanding any other
provision of law, if the mortgage covering the property
receiving assistance under section 8 is neither insured
nor formerly insured by the Secretary, the Secretary
shall make all civil money penalties collected under
this section available for use by the appropriate
office within the Department for administrative costs
related to enforcement of the requirements of the
various programs administered by the Secretary.
``(h) Definitions.--In this section--
``(1) the term `agent employed to manage the
property that has an identity of interest' means an
entity--
``(A) that has management responsibility
for a project;
``(B) in which the ownership entity,
including its general partner or partners (if
applicable), has an ownership interest; and
``(C) over which such ownership entity
exerts effective control; and
``(2) the term `knowing' means having actual
knowledge of or acting with deliberate ignorance of or
reckless disregard for the prohibitions under this
section.''.
(b) Applicability.--The amendments made by subsection (a)
shall apply only with respect to--
(1) violations that occur on or after the effective
date of final regulations implementing the amendments
made by this section; and
(2) in the case of a continuing violation (as
determined by the Secretary of Housing and Urban
Development), any portion of a violation that occurs on
or after such date.
(c) Implementation.--
(1) Regulations.--
(A) In general.--The Secretary shall
implement the amendments made by this section
by regulation issued after notice and
opportunity for public comment.
(B) Comments sought.--The notice under
subparagraph (A) shall seek comments as to the
definitions of the terms ``ownership interest
in'' and ``effective control'', as such terms
are used in the definition of the term ``agent
employed to manage such property that has an
identity of interest''.
(2) Timing.--A proposed rule implementing the
amendments made by this section shall be published not
later than 1 year after the date of enactment of this
Act.
SEC. 563. EXTENSION OF DOUBLE DAMAGES REMEDY.
Section 421 of the Housing and Community Development Act of
1987 (12 U.S.C. 1715z-4a) is amended--
(1) in subsection (a)(1)--
(A) in the first sentence, by striking
``Act; or (B)'' and inserting the following:
``Act; (B) a regulatory agreement that applies
to a multifamily project whose mortgage is
insured or held by the Secretary under section
202 of the Housing Act of 1959 (including
property subject to section 202 of such Act as
it existed before enactment of the Cranston-
Gonzalez National Affordable Housing Act of
1990); (C) a regulatory agreement or such other
form of regulatory control as may be imposed by
the Secretary that applies to mortgages insured
or held by the Secretary under section 542 of
the Housing and Community Development Act of
1992, but not reinsured under section 542 of
the Housing and Community Development Act of
1992; or (D)''; and
(B) in the second sentence, by inserting
after ``agreement'' the following: ``, or such
other form of regulatory control as may be
imposed by the Secretary,'';
(2) in subsection (a)(2), by inserting after
``Act,'' the following: ``under section 202 of the
Housing Act of 1959 (including section 202 of such Act
as it existed before enactment of the Cranston-Gonzalez
National Affordable Housing Act of 1990) and under
section 542 of the Housing and Community Development
Act of 1992,'';
(3) in subsection (b), by inserting after
``agreement'' the following: ``, or such other form of
regulatory control as may be imposed by the
Secretary,'';
(4) in subsection (c)--
(A) in the first sentence, by inserting
after ``agreement'' the following: ``, or such
other form of regulatory control as may be
imposed by the Secretary,''; and
(B) in the second sentence, by inserting
before the period the following: ``or, in the
case of any project for which the mortgage is
held by the Secretary under section 202 of the
Housing Act of 1959 (including property subject
to section 202 of such Act as it existed before
enactment of the Cranston-Gonzalez National
Affordable Housing Act of 1990), to the project
or to the Department for use by the appropriate
office within the Department for administrative
costs related to enforcement of the
requirements of the various programs
administered by the Secretary, as
appropriate''; and
(5) in subsection (d), by inserting after
``agreement'' the following: ``, or such other form of
regulatory control as may be imposed by the
Secretary,''.
SEC. 564. OBSTRUCTION OF FEDERAL AUDITS.
Section 1516(a) of title 18, United States Code, is amended
by inserting after ``under a contract or subcontract,'' the
following: ``or relating to any property that is security for a
mortgage note that is insured, guaranteed, acquired, or held by
the Secretary of Housing and Urban Development pursuant to any
Act administered by the Secretary,''.
Subtitle D--Office of Multifamily Housing Assistance Restructuring
SEC. 571. ESTABLISHMENT OF OFFICE OF MULTIFAMILY HOUSING ASSISTANCE
RESTRUCTURING.
There is hereby established an office within the Department
of Housing and Urban Development, which shall be known as the
Office of Multifamily Housing Assistance Restructuring.
SEC. 572. DIRECTOR.
(a) Appointment.--The Office shall be under the management
of a Director, who shall be appointed by the President by and
with the advice and consent of the Senate, from among
individuals who are citizens of the United States and have a
demonstrated understanding of financing and mortgage
restructuring for affordable multifamily housing. Not later
than 60 days after the date of the enactment of this Act, the
President shall submit to the Senate a nomination for initial
appointment to the position of Director.
(b) Vacancy.--A vacancy in the position of Director shall
be filled in the manner in which the original appointment was
made under subsection (a).
(c) Deputy Director.--
(1) In general.--The Office shall have a Deputy
Director who shall be appointed by the Director from
among individuals who are citizens of the United States
and have a demonstrated understanding of financing and
mortgage restructuring for affordable multifamily
housing.
(2) Functions.--The Deputy Director shall have such
functions, powers, and duties as the Director shall
prescribe. In the event of the death, resignation,
sickness, or absence of the Director, the Deputy
Director shall serve as acting Director until the
return of the Director or the appointment of a
successor pursuant to subsection (b).
SEC. 573. DUTY AND AUTHORITY OF DIRECTOR.
(a) Duty.--The Secretary shall, acting through the
Director, administer the program of mortgage and rental
assistance restructuring for eligible multifamily housing
projects under subtitle A. During the period before the
Director is appointed, the Secretary may carry out such
program.
(b) Authority.--The Director is authorized to make such
determinations, take such actions, issue such regulations, and
perform such functions assigned to the Director under law as
the Director determines necessary to carry out such functions,
subject to the review and approval of the Secretary. The
Director shall semiannually submit a report to the Secretary
regarding the activities, determinations, and actions of the
Director.
(c) Delegation of Authority.--The Director may delegate to
officers and employees of the Office (but not to contractors,
subcontractors, or consultants) any of the functions, powers,
and duties of the Director, as the Director considers
appropriate.
(d) Independence in Providing Information to Congress.--
(1) In general.--Notwithstanding subsection (a) or
(b), the Director shall not be required to obtain the
prior approval, comment, or review of any officer or
agency of the United States before submitting to the
Congress, or any committee or subcommittee thereof, any
reports, recommendations, testimony, or comments if
such submissions include a statement indicating that
the views expressed therein are those of the Director
and do notnecessarily represent the views of the
Secretary or the President.
(2) Requirement.--If the Director determines at any
time that the Secretary is taking or has taken any
action that interferes with the ability of the Director
to carry out the duties of the Director under this Act
or that affects the administration of the program under
subtitle A of this Act in manner that is inconsistent
with the purposes of this Act, including any proposed
action by the Director, in the discretion of the
Director, that is overruled by the Secretary, the
Director shall immediately report directly to the
Committee on Banking and Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate regarding such
action. Notwithstanding subsection (a) or (b), any
determination or report under this paragraph by the
Director shall not be subject to prior review or
approval of the Secretary.
SEC. 574. PERSONNEL.
(a) Office Personnel.--The Director may appoint and fix the
compensation of such officers and employees of the Office as
the Director considers necessary to carry out the functions of
the Director and the Office. Officers and employees may be paid
without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of title 5, United States Code, relating to
classification and General Schedule pay rates.
(b) Comparability of Compensation With Federal Banking
Agencies.--In fixing and directing compensation under
subsection (a), the Director shall consult with, and maintain
comparability with compensation of officers and employees of
the Federal Deposit Insurance Corporation.
(c) Personnel of Other Federal Agencies.--In carrying out
the duties of the Office, the Director may use information,
services, staff, and facilities of any executive agency,
independent agency, or department on a reimbursable basis, with
the consent of such agency or department.
(d) Outside Experts and Consultants.--The Director may
procure temporary and intermittent services under section
3109(b) of title 5, United States Code.
SEC. 575. BUDGET AND FINANCIAL REPORTS.
(a) Financial Operating Plans and Forecasts.--Before the
beginning of each fiscal year, the Secretary shall submit a
copy of the financial operating plans and forecasts for the
Office to the Director of the Office of Management and Budget.
(b) Reports of Operations.--As soon as practicable after
the end of each fiscal year and each quarter thereof, the
Secretary shall submit a copy of the report of the results of
the operations of the Office during such period to the Director
of the Office of Management and Budget.
(c) Inclusion in President's Budget.--The annual plans,
forecasts, and reports required under this section shall be
included (1) in the Budget of the United States in the
appropriate form, and (2) in the congressional justifications
of the Department of Housing and Urban Development for each
fiscal year in a form determined by the Secretary.
SEC. 576. LIMITATION ON SUBSEQUENT EMPLOYMENT.
Neither the Director nor any former officer or employee of
the Office who, while employed by the Office, was compensated
at a rate in excess of the lowest rate for a position
classified higher than GS-15 of the General Schedule under
section 5107 of title 5, United States Code, may, during the 2-
year period beginning on the date of separation from employment
by the Office, accept compensation from any party (other than a
Federal agency) having any financial interest in any mortgage
restructuring and rental assistance sufficiency plan under
subtitle A or comparable matter in which the Director or such
officer or employee had direct participation or supervision.
SEC. 577. AUDITS BY GAO.
The Comptroller General shall audit the operations of the
Office in accordance with generally accepted Government
auditing standards. All books, records, accounts, reports,
files, and property belonging to, or used by, the Office shall
be made available to the Comptroller General. Audits under this
section shall be conducted annually for the first 2 fiscal
years following the date of the enactment of this Act and as
appropriate thereafter.
SEC. 578. SUSPENSION OF PROGRAM BECAUSE OF FAILURE TO APPOINT DIRECTOR.
(a) In General.--If, upon the expiration of the 12-month
period beginning on the date of the enactment of this Act, the
initial appointment to the office of Director has not been
made, the operation of the program under subtitle A shall
immediately be suspended and such provisions shall not have any
force or effect during the period that ends upon the making of
such appointment.
(b) Interim applicability of demonstration program.--
Notwithstanding any other provision of law, during the period
referred to in subsection (a), the Secretary shall carry out
sections 211 and 212 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997. For purposes of applying such
sections pursuant to the authority under this section, the term
``expiring contract'' shall have the meaning given in such
sections, except that such term shall also include any contract
for project-based assistance under section 8 of the United
States Housing Act of 1937 that expires during the period that
the program is suspended under subsection (a).
SEC. 579. TERMINATION.
(a) Repeal.--Subtitle A (except for section 524) and
subtitle D (except for this section) are repealed effective
October 1, 2001.
(b) Exception.--Notwithstanding the repeal under subsection
(a), the provisions of subtitle A (as in effect immediately
before such repeal) shall apply with respect to projects and
programs for which binding commitments have been entered into
under this Act before October 1, 2001.
(c) Termination of Director and Office.--The Office of
Multifamily Housing Assistance Restructuring and the position
of Director of such Office shall terminate upon September 30,
2001.
(d) Transfer of Authority.--Effective upon the termination
under subsection (c), any authority and responsibilities
assigned to the Director that remain applicable after such date
pursuant to subsection (b) are transferred to the Secretary.
This Act may be cited as the ``Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1998''.
And the Senate agree to the same.
Jerry Lewis,
Tom DeLay,
James T. Walsh,
Dave Hobson,
Joe Knollenberg,
R.P. Frelinghuysen,
Roger F. Wicker,
Bob Livingston,
Louis Stokes,
Alan B. Mollohan,
Marcy Kaptur,
Carrie P. Meek,
David E. Price,
Dave Obey,
Managers on the Part of the House.
Christopher S. Bond,
Conrad Burns,
Ted Stevens,
Richard Shelby,
Ben Nighthorse Campbell,
Larry E. Craig,
Thad Cochran,
Barbara A. Mikulski,
Patrick J. Leahy,
Frank R. Lautenberg,
Tom Harkin,
Barbara Boxer,
Robert C. Byrd,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the Senate to the bill (H.R. 2158) making
appropriations for the Departments of Veterans Affairs and
Housing and Urban Development, and for sundry independent
agencies, commissions, corporations, and offices for the fiscal
year ending September 30, 1998, and for other purposes, submit
the following joint statement to the House and the Senate in
explanation of the effect of the action agreed upon by the
managers and recommended in the accompanying report.
The language and allocations set forth in House Report
105-175 and Senate Report 105-53 should be complied with unless
specifically addressed to the contrary in the conference report
and statement of the managers. Report language included by the
House which is not changed by the report of the Senate or the
conference, and Senate report language which is not changed by
the conference is approved by the committee of conference. The
statement of the managers, while repeating some report language
for emphasis, does not intend to negate the language referred
to above unless expressly provided herein. In cases in which
the House or Senate have directed the submission of a report,
such report is to be submitted to both House and Senate
Committees on Appropriations.
TITLE I--DEPARTMENT OF VETERANS AFFAIRS
Veterans Health Administration
medical care
Appropriates $17,057,396,000 for medical care, instead of
$17,006,846,000 as proposed by the House and $17,026,846,000 as
proposed by the Senate.
The increase of $98,550,000 consists of the following
additions to the budget request:
+$68,000,000 to continue the funding of compensation and
pension examinations from the medical care account.
+$30,550,000 as a general increase, subject to approval
in the operating plan.
The conferees agree that within the total amount
provided, $6,000,000 is to establish the Musculoskeletal
Disease Prevention and Treatment Research Center at the Jerry
L. Pettis Memorial VA Medical Center in Loma Linda, California.
This amount is in addition to the amount that would otherwise
be made available to VISN 22.
The conferees wish to emphasize language in the House and
Senate reports regarding expanding an outpatient clinic in
Williamsport, Pennsylvania; activation costs for construction
projects at the medical centers in Wilkes-Barre, Pennsylvania
and Phoenix, Arizona; and the demonstration project involving
the Clarksburg VA Medical Center and Ruby Memorial Hospital.
The VA is urged to establish a community based outpatient
clinic in Brookhaven, New York.
Deletes language proposed by the House and stricken by
the Senate enabling compensation and pension exams to be
directly funded from Veterans Benefits Administration
resources. The Administration proposed that the cost of
conducting medical examinations with respect to veterans'
claims for compensation or pension be reimbursed from the
general operating expenses appropriation. The conferees expect
the results of a soon to begin pilot program to contract for
compensation and pension exams will determine the advisability
of this concept.
Delays the availability of $570,000,000 of the medical
care appropriation in the equipment and land and structures
object classifications until August 1, 1998, instead of
delaying the availability of $565,000,000 as proposed by the
House and $550,000,000 as proposed by the Senate.
Inserts language as proposed by the House earmarking not
to exceed $5,000,000 for a pilot program on the cost-
effectiveness of contracting with local hospitals in East
Central Florida for the provision of non-emergent inpatient
health care needs of veterans. The VA is to submit a report to
the Committees on Appropriations on how it plans to conduct the
demonstration program prior to implementation.
Inserts modifications to identical language proposed by
the House and the Senate making amounts recovered or collected
and deposited in the Department of Veterans Affairs Medical
Care Collections Fund available for general purposes of the
medical care appropriation, including administrative costs
associated with collecting such funds. The modifications
reflect the authorizing legislation which was enacted
subsequent to House and Senate consideration of the
appropriations bill. The conference agreement also provides for
the availability of any moneys deposited in the Fund due to a
shortfall that is in excess of $25,000,000 below the
$604,000,000 estimated to be recovered, as authorized in Public
Law 105-33, the Balanced Budget Act of 1997. Including this
language on shortfalls is scored as costing $15,000,000 in
budget authority and$14,000,000 in outlays. The conferees wish
to make clear that the $15,000,000 is not the amount that would be made
available in the event of a shortfall, rather it is the cost scored for
permitting funds deposited by the Secretary of the Treasury to be made
available from the Fund to the VA for health care. The actual amount of
the funds made available would depend upon the amount of the shortfall.
The language proposed by the House in section 108 of the VA
administrative provisions dealing with a potential shortfall is deleted
due to the enactment of authorizing legislation and language carried
under this heading.
The House report contained a request that the General
Accounting Office study and report on the effects of Veterans
Integrated Service Networks (VISN) and Veterans Equitable
Resource Allocation (VERA) processes and their implementation.
The report was to be completed in four months. The Secretary
was directed, pending receipt of the GAO report, to fund all
VISNs at least at the fiscal year 1996 level. The Senate report
indicated support for the implementation of VISN and VERA. It
also expressed opposition to efforts to thwart VERA. The
conference agreement retains the GAO report requirements,
modified to direct that the report be completed in nine months.
The conference agreement does not direct the VA to fund all
VISNs at least at the fiscal year 1996 level.
The conferees support the pilot diabetes project in New
England and Hawaii funded through the Department of Defense.
The two-year pilot demonstration program shows promise for
improved and innovative methods of diabetes detection,
prevention, and care.
The conferees encourage VA to examine carefully the work
in Detroit associated with the PARMIN, population and resource
management information network. The conferees further encourage
VA to consider setting aside an appropriate amount for the
development and analytical work associated with the PARMIN
system, and have the VA report back to the Committees on
Appropriations as to the viability of this project within 120
days of enactment of this Act.
MEDICAL AND PROSTHETIC RESEARCH
Appropriates $272,000,000 for medical and prosthetic
research, instead of $292,000,000 as proposed by the House and
$267,000,000 as proposed by the Senate. The conference
agreement includes $10,000,000 for research into Parkinson's
disease. The VA is to report to the Committees on
Appropriations with detailed plans on how it plans to spend
these research funds.
Deletes language proposed by the House and stricken by
the Senate earmarking $25,000,000 of the appropriation for
medical research relating to Gulf War illnesses afflicting
Persian Gulf veterans. The committee of conference is concerned
with illnesses reported by some Gulf War veterans. However, the
VA indicates that it is not possible to utilize effectively
$25,000,000 for such research. The conferees agree that the VA
is to utilize $12,500,000 of the appropriation for such
purposes, and to submit information with the operating plan on
how the funds will be spent. The conferees note that the
Federal Government is also spending money on this effort in the
Department of Defense, the National Institute of Environmental
Health Sciences, and the Centers for Disease Control.
MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING EXPENSES
Appropriates $59,860,000 for medical administration and
miscellaneous operating expenses, instead of $60,160,000 as
proposed by the House and the Senate. The decrease of $300,000
is a general reduction from the budget request, subject to
approval in the operating plan. Additional information on the
reduction can be found in this report under the general
operating expenses account.
Departmental Administration
GENERAL OPERATING EXPENSES
Appropriates $786,135,000 for general operating expenses,
instead of $853,385,000 as proposed by the House and
$786,385,000 as proposed by the Senate. This amount includes
the following changes to the budget request:
-$68,000,000 requested to fund compensation and pension
examinations from the general operating expenses appropriation.
Funds for these purposes continue to be included in the medical
care account.
+$8,000,000, subject to approval in the operating plan,
for activities such as higher than anticipated contracting
costs to ensure compliance with Year 2000 computer problems,
retaining Veterans Benefits Administration staff to improve the
timeliness of processing veterans claims, development and
implementation of capacities that will enable effective
Department-wide strategic planning and management, information
technology priorities delineated in the recent National Academy
of Public Administration report, and other priorities
recommended by NAPA. Consideration should be given to
reprogramming funds from activities identified by NAPA as lower
priority, such as VETSNET. The VA should consider this a one-
time adjustment to address on-going concerns. Future budget
requests are to include adequate funds for administrative
costs.
-$150,000 from the $3,630,000 requested for the Office of
the Secretary.
-$100,000 from the $2,373,000 requested for the Office of
the Assistant Secretary for Congressional Affairs.
The conferees are concerned about the responsiveness of
the Department of Veterans Affairs to Congressional inquiries
regarding the implementation of the VERA system. The committee
of conference directs the Department to communicate with
Congress on the development of this new allocation system, as
well as all other matters of interest, in a timely and
informative manner. The conferees are particularly disturbed by
the implementation of the VERA system within VISN 4. It is the
understanding of the conferees that the VA failed to provide
any information regarding the 40 different funding scenarios
that were run in VISN 4 before deciding on a final allocation.
Further, some hospitals within VISN 4 received allocations
above their budget request, while some hospitals were targeted
for cuts. The conferees are concerned that no satisfactory
justification for this discrepancy has been provided.
Additionally, the committee of conference understands that
harsh and unfair personnel policies have been implemented in at
least one hospital within VISN 4. The conferees emphasize that
such activity will not be tolerated.
In an effort to address these issues, the conferees
expect the Department to provide a full and detailed report,
not later than December 15, 1997, to the Committees on
Appropriations. This report should include but not be limited
to: a complete explanation of the funding allocation within
VISN 4, including all 40 funding scenarios in the Stars and
Stripes Health Care Network, the specific methodology used to
reach the final allocation within the VISN 4 network, a
detailed justification for any funding increases or decreases
provided to any hospital within VISN 4 throughout fiscal year
1997, and a detailed evaluation of the formulas and funding
methodology used for the allocation of resources during fiscal
year 1997.
Finally, the Secretary, the Assistant Secretary for
Congressional Affairs, and the Under Secretary for Health are
immediately to take appropriate action to ensure that the
agency is more responsive to Congressional inquiries, and that
responses to requests for information are timely and provide
clear, specific, and forthcoming explanations. The committee of
conference directs that $3,480,000 will be available for the
Office of the Secretary, a reduction of $150,000 below the
budget request. An amount of $2,273,000 will be available for
the Office of the Assistant Secretary for Congressional
Affairs, a $100,000 reduction below the budget request. The
conferees direct that none of the reduction is to be applied to
the Congressional liaison offices. An amount of $59,860,000
will be made available for the medical and miscellaneous
operating expenses account, a decrease of $300,000 below the
budget request. The total amount of these savings, $550,000,
will be provided as an increase to the medical care account for
providing health care to veterans.
Deletes language proposed by the House and stricken by
the Senate enabling compensation and pension medical
examinations to be directly funded from Veterans Benefits
Administration resources. Such exams will continue to be funded
from the medical care appropriation.
Inserts language proposed by the House and stricken by
the Senate prohibiting the VA from proceeding with the
relocation of loan guaranty divisions of the Regional Office in
St. Petersburg, Florida to Atlanta, Georgia. The conferees do
not believe the VA has adequately justified the proposed
relocation. Any future relocation proposal should include a
detailed cost-benefit analysis including comparison of savings
for the cost of space and personnel.
Veterans Housing Benefit Program Fund Program Account
Adds technical change to the bill language for the
Veterans Housing Benefit Program Fund Program Account
facilitating the transition during fiscal year 1998 from the
previous direct and guaranteed housing loan program accounts to
the new appropriation. These provisions have recently been
requested by the VA, but were not included in either the House
or Senate bills.
Construction, Major Projects
Appropriates $177,900,000 for construction, major
projects, instead of $159,600,000 as proposed by the House and
$92,800,000 as proposed by the Senate. The conference agreement
includes the following changes from the budget estimate:
+$26,300,000 for construction of an ambulatory care
addition at the Asheville, North Carolina VA Medical Center.
+$21,100,000 for construction of an ambulatory care
addition at the Lyons, New Jersey VA Medical Center.
+$7,700,000 for the ward renovations for patient privacy
project at the Omaha, Nebraska VA Medical Center.
+$26,000,000 for the environmental improvements project
at the Waco, Texas VA Medical Center.
+$4,000,000 for the columbarium component of the
development and improvement project at the National Memorial
Cemetery of Arizona. This amount is in addition to the
$9,100,000 requested and included in the total for major
construction for the development and improvement of this
cemetery project.
+$12,400,000 for the patient privacy/environmental
improvements project at the Pittsburgh, Pennsylvania VA Medical
Center.
+$900,000 for planning of a new national cemetery in
Oklahoma City, Oklahoma.
Inserts language proposed by the Senate making
$32,100,000 earmarked in the 1997 Appropriations Act for a
replacement hospital at Travis Air Force Base available to
implement the recommendations contained in the final report
entitled ``Assessment of Veterans' Health Care Needs in
Northern California,'' modified to make such funds generally
available for major construction projects approved in the
budgetary process. This $32,100,000 together with $38,700,000
provided in previous Appropriations Acts for the replacement
for the hospital at Martinez, makes a total of $70,800,000
available for capital funding for construction projects in
northern California. Instead of a replacement hospital to be
built at David Grant Medical Center at Travis Air Force Base,
the VA recommends capital funding for a project in northern
California which consists of the following elements:
$48,000,000 to renovate and add to the existing McClellan
Hospital at Mather Field, Sacramento, California, for VA
inpatient and outpatient services.
$13,500,000 to construct a new VA outpatient clinic at
Travis Air Force Base, Fairfield, California.
$3,100,000 to upgrade the existing outpatient clinic at
the former Mare Island Naval Shipyard, Vallejo, California, for
a VA outpatient clinic.
$3,200,000 to upgrade the existing VA outpatient clinic
at Martinez, California, and
$3,000,000 to develop new VA outpatient clinics at
Auburn, Chico, Eureka, and Merced, California.
In addition to these capital plans, the VA has reached
agreement with the Department of Defense about the Air Force
making available up to 100 beds at David Grant Medical Center
to provide inpatient care associated with the VA outpatient
clinic to be built there. The conferees understand that the VA
will pursue contracting arrangements with community health care
facilities in Martinez and Redding, California, to improve
access to inpatient services for veterans in those areas.
The conferees agree with the utilization of the
$70,800,000 in previously appropriated funds for the
construction of facilities in northern California as proposed
by the VA and outlined in this statement. The conferees agree
with increasing to 100 the number of inpatient beds at Travis,
and contracting the community health care facilities in
Martinez and Redding for inpatient services. This plan will
provide better access to health care services for the veterans
in northern California and save funds.
The conferees recognize that the cost estimates are
tentative and expect the VA to notify the Committees on
Appropriations of any changes in the cost estimates for the
individual components of this single project prior to
proceeding to construction bid. The conferees also recognize
that the majority of the plan requires authorization by the
legislative committees, and anticipate that the construction
authorization process will proceed in a timely manner so as to
benefit veterans in northern California.
Deletes language proposed by the House and the Senate
requiring the General Accounting Office to review and report on
construction projects where obligations are not incurred within
prescribed time limitations. The VA is still required to report
all such delays in obligating major construction funds to the
Committees on Appropriations.
construction, minor projects
Appropriates $175,000,000 for construction, minor
projects, instead of $176,500,000 as proposed by the House and
$166,300,000 as proposed by the Senate. The amount provided
includes funds for the following activities:
+$1,500,000 for the expansion of the existing National
Cemetery in Mobile, Alabama.
+$1,500,000 to increase the number of niches at the
columbarium at the National Memorial Cemetery of the Pacific by
5,000.
The conferees urge the VA to utilize the balance of the
addition to increase funding for converting inpatient space to
outpatient activities use.
The conferees note the recent request for approval of a
reprogramming request of construction, major projects funds to
complete the third floor of the Regional Office in Jackson,
Mississippi. The proposed reprogramming request of $1,000,000
for the project in Jackson is approved.
grants for construction of state extended care facilities
Appropriates $80,000,000 for grants for construction of
State extended care facilities as proposed by the Senate,
instead of $54,500,000 as proposed by the House.
administrative provisions
Deletes language proposed by the House and stricken by
the Senate in section 108 assuring that, upon enactment of
legislation establishing the Medical Collection Fund,
$579,000,000 shall be available for veterans medical care if a
shortfall in recoveries in excess of $25,000,000 occurs. The
enactment of authorizing legislation and language carried under
the medical care appropriation provide such assurance. The
committee of conference wishes to make clear that the VA is
expected to take all actions necessary to meet or exceed the
amount of funds projected to be collected.
Inserts language proposed by the Senate in section 108
restoring the authority of the VA to request waivers of the
home residency requirement for doctors employed at VA medical
facilities on J-1 visas.
Deletes language proposed by the Senate in section 109
limiting the use of the locality pay differential to provide a
pay increase to an employee transferred as a result of charges
of sexual harassment. The conferees wish to make clear that the
VA Secretary is to take all appropriate steps to ensure that a
``zero tolerance'' policy toward sexual harassment is
implemented in all VA facilities and offices, including the
strongest possible sanctions against employees engaging in such
practices.
Inserts language, section 109, extending the availability
of previously appropriated funds for a capital lease. This
administrative provision was not included in either the House
or Senate bills. Without this language, certain funds for a
multi-year capital lease would lapse and the VA would be
required to, in effect, pay twice for the lease.
TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Public and Indian Housing
housing certificate fund
Appropriates $9,373,000,000 for the housing certificate
fund instead of $10,393,000,000 as proposed by the House and
$10,119,000,000 as proposed by the Senate. Of this amount,
$8,180,000,000 is provided for expiring or terminated section 8
project-based and tenant-based subsidy contracts instead of
$9,200,000,000 as proposed by the House and $8,666,000,000 as
proposed by the Senate. Additionally, $850,000,000 is provided
for section 8 amendments as proposed by the House instead of
$1,110,000,000 as proposed by the Senate. Finally, $40,000,000
is earmarked for section 8 certificates and vouchers necessary
to relocate any nonelderly, disabled persons and their families
who choose to move from a project designated for elderly
persons only, as proposed by the Senate, rather than
$50,000,000 as proposed by the House. Language is included to
make the requirements for using these funds more flexible.
Additional language is included to clarify that eligible
residents may receive section 8 enhanced vouchers, also known
as ``sticky'' vouchers, if an owner of the property chooses to
prepay the outstanding indebtedness as authorized under the
Low-Income Housing Preservation and Resident Homeownership Act
of 1990 (Preservation Program or LIHPRHA).
section 8 reserve preservation account
The conferees agree to provide HUD with authority to
maintain a section 8 Reserve Preservation Account for the
purpose of collecting recaptured excess section 8 reserve
funds.
annual contributions for assisted housing
The conferees agree to rescind $550,000,000 of recaptured
section 8 reserve funds.
public housing capital fund
The Senate proposed language setting aside funds for the
Economic Development and Supportive Services (EDSS) program
within the Public Housing Capital Fund. The conferees have
instead included this language within the Community Development
Block Grants (CDBG) account as proposed by the House. Language
is added to the Public Housing Capital Fund account to clarify
that HUD may spend up to $5,000,000 for the Tenant Opportunity
Program as proposed by the Senate.
drug elimination grants for low-income housing
Appropriates $310,000,000 for the Drug Elimination Grants
program, including $20,000,000 for the ``New Approach Anti-Drug
Program,'' instead of funding this new program with a
$30,000,000 set-aside within the CDBG account, as proposed by
the Senate. The House did not appropriate funds for this
purpose.
The ``New Approach Anti-Drug Program'' authorizes HUD to
make competitive grants to entities managing or operating
public housing developments, federally assisted multifamily
housing developments or other multifamily housing developments
for low-income families supported by non-Federal governmental
entities or nonprofits. The funds may be used to provide,
augment, or assist in the investigation and/or prosecution of
drug-related criminal activity in and around low-income
housing, and to provide assistance for capital improvements
directly related to security. The conferees note that none of
the funds under this account should be used to reduce the local
cost of and responsibility for law enforcement activities with
Federal funding.
Appropriates $10,000,000 for the Office of Inspector
General for Operation Safe Home as proposed by the House
instead of $5,000,000 as proposed by the Senate.
revitalization of severely distressed public housing (hope vi)
Appropriates $550,000,000 to revitalize severely
distressed public housing as proposed by the Senate instead of
$524,000,000 as proposed by the House. Of the total amount
appropriated, $10,000,000 is provided for technical assistance
as proposed by the Senate instead of $5,000,000 as proposed by
the House. Additionally, as proposed by the Senate, a new
demonstration to demolish obsolete elderly public housing
projects is funded at $26,000,000 rather than $50,000,000 as
proposed by the Senate, with a specific set-aside of up to
$10,000,000 for Heritage House in Kansas City, Missouri.
The conferees direct HUD to provide an evaluation of the
current status of the HOPE VI program and report to Congress by
June 30, 1998. This report should identify and analyze public
housing facilities which are eligible for funding as obsolete
public housing under the new demonstration program, and should
include recommendations on innovative approaches to
revitalizing this housing so it meets the special needs of the
elderly and the disabled. Finally, the conferees request HUD to
advise the Congress on the current extent, status, and cost of
deferred maintenance for the entire public housing stock, and
to include recommendations on innovative ways for public
housing agencies to address more effectively these maintenance
needs through the Public Housing Capital Fund and through other
funding sources and approaches.
native american housing block grants
Appropriate $600,000,000 for Native American Housing
Block Grants instead of $650,000,000 as proposed by the House
and $485,000,000 as proposed by the Senate.
The conferees agree to provide $5,000,000 for the loan
guarantee program authorized under section 601 of the Native
American Housing Assistance and Self-Determination Act as
proposed by the Senate. The House did not provide funds for
this program. Like the Native American Housing Block Grants
program, the section 601 program is less than one year old. The
program was developed to provide Native Americans the ability
to gain access to private investment and capital from financial
institutions, builders, and nonprofits. This access is
necessary if tribes are to improve their economic conditions
and reduce housing shortages. At this time, however, few tribes
have the financial expertise to utilize the section 601 program
effectively. Therefore, for fiscal year 1998, HUD is directed
to provide these funds on a demonstration basis to tribes that
have experience with complex financial transactions and to
study carefully their use so that lessons learned may be
incorporated into regulations regarding implementation of this
program throughout Indian areas.
indian housing loan guarantee fund program account
Appropriates $5,000,000 for the cost of guaranteed loans
instead of $3,000,000 as proposed by the House and $6,000,000
as proposed by the Senate. This amount will subsidize total
loan principal not to exceed $73,800,000.
capital grants/capital loans preservation account
Appropriates $10,000,000 for Capital Grants/Capital Loans
Preservation, instead of no funds, as proposed by the House.
The Senate proposed to fund prepayments with any excess
interest reduction payment funds and included additional
reforms to the existing program.
To compensate organizations that incurred costs of
appraisals and preparing plans of action, the conferees agree
to provide $10,000,000. However, the conferees do not intend to
imply that any costs associated with this program constitute an
obligation of HUD. The award of close-out costs are to be
determined in the sole discretion of the Secretary.
In addition, the conferees emphasize that adequate
funding is provided under the section 8 contract renewal
account to provide enhanced vouchers to eligible low- or
moderate-income families residing in a federally-assisted
project eligible for the Preservation program on the date of
the prepayment of voluntary termination.
Community Planning and Development
housing opportunities for persons with aids
Includes language authorizing HUD to provide grants, of
no more than $250,000, to nonprofit organizations that deliver
meals to homebound persons who suffer from acquired
immunodeficiency syndrome, as proposed by the House. The Senate
did not include this provision.
community development block grants
Appropriates $4,675,000,000 for the Community Development
Block Grants program, instead of $4,600,000,000 as proposed by
the House and Senate, to avert decreases in funding allocations
that may be caused by the increased number of set-asides. For
the Economic Development and Supportive Services Program,
$55,000,000 is provided, including a set-aside of up to
$5,000,000 for the Moving to Work program. Within the
$55,000,000 provided for economic development and supportive
services, the conferees have specified that no less than
$7,000,000 shall be used for grants for service coordinators
and congregate services for the elderly and disabled. The
conferees understand this amount to be sufficient to renew all
service coordinator and congregate services grants expiring in
fiscal year 1998, and intend that all such grants be renewed
except in cases where HUD has a specific reason (such as poor
performance by the grantee or lack of continuing need) not to
renew a particular grant. The conferees emphasize that the
$7,000,000 is not a ceiling or target for spending on service
coordinators and congregate services, but rather simply an
absolute floor to ensure that sufficient funding is reserved
for renewals before other allocations are made. The conferees
consider service coordinators and other supportive services to
be valuable tools for promoting self-sufficiency and improving
the quality of life of elderly and disabled residents of public
and assisted housing.
For grants pursuant to section 107, the conferees provide
$32,000,000 instead of $25,100,000 as proposed by the House and
$30,000,000 as proposed by the Senate, and $7,500,000 for the
Community Outreach Partnership Program instead of $11,500,000
as proposed by the House and $12,500,000 as proposed by the
Senate. Targeted set-asides within these accounts are moved to
the Economic Development Initiative program.
Additionally, the conferees agree to appropriate
$16,700,000 for grants to self-help housing provided pursuant
to section 11 of the Housing Opportunity Program Extension Act
of 1996, as proposed by the House; $35,000,000 for YouthBuild
as proposed by the Senate rather than $30,000,000 as proposed
by the House; and $15,000,000 for Capacity Building for
Community Development and Affordable Housing, as authorized
under section 4 of the HUD Demonstration Act of 1993, rather
than $30,000,000 as proposed by the Senate. The House did not
provide funds for this program. Language was included to limit
these funds to the original grantees under section 4.
In providing $35,000,000 for YouthBuild, the conferees
have demonstrated that they support the maintenance and
expansion of the YouthBuild program. However, in order to
promote a comprehensive approach for supporting and expanding
YouthBuild, the Secretary is directed to coordinate with the
Secretaries of Labor, Health and Human Services, and Education,
and the Attorney General, as well as the Directors of School-
to-Work Opportunities, the Corporation for National and
Community Service, and the Job Corps, in conjunction with
YouthBuild USA, in the development and implementation of a plan
for expansion of YouthBuild. Youth Build is a comprehensive
program that has relevance for all of these agencies.
Appropriates $138,000,000 for the Economic Development
Initiative instead of $50,000,000 as proposed by the Senate and
$40,000,000 as proposed by the House. Targeted grants are
provided for the following special projects:
--$3,000,000 to the City of Highland, California,
to redevelop the Fifth Street Bridge;
--$50,000 to the Cheltenham Township in Cheltenham,
Pennsylvania, to restore the Cheltenham Park;
--$250,000 to the City of Jacksonville, Florida,
for the Tallyrand Redevelopment Project;
--$15,000 to the Arab Police Department in Arab,
Illinois, for the Multidepartmental Training Complex;
--$1,250,000 to the Stevens Institute of Business
Technology in Hoboken, New Jersey, for the construction
of the Laboratory for Business Innovation;
--$250,000 to the County of Inyo, California, to
plan and design the Lower Owens River project;
--$50,000 to Springfield Township, Pennsylvania,
for the purpose of Springfield's park restoration;
--$400,000 for the National Center for Appropriate
Technology in Butte, Montana, for the purpose of making
improvements in the energy efficiency of low-income
housing;
--$200,000 to Ohio Wesleyan University in Delaware,
Ohio, for the purpose of renovating Edgar Hall;
--$1,000,000 to the Garden State Cancer Center in
Belleville, New Jersey, for the purpose of diagnosis,
detection, and treatment of cancer utilizing such
radioimmunodetection and radioimmunotherapy technology;
--$250,000 to the County of San Bernardino,
California, for economic development at Norton Air
Force Base;
--$50,000 to the City of Norristown Borough in
Norristown, Pennsylvania, for recreational park
development and open space preservation;
--$500,000 to Olive Crest Homes and Services for
Abused Children in Perris, California;
--$50,000 to Landsdale Borough in Landsdale,
Pennsylvania, for recreational parks development and
open space preservation;
--$200,000 to the National Afro-American Museum in
Wilberforce, Ohio, for an educational training program;
--$150,000 to the City of San Diego, California,
for the Beach Area Low Flow Storm Diversion program and
safety needs;
--$1,000,000 to the World Congress on Information
Technology in Fairfax, Virginia;
--$600,000 to the City of Kendleton, Fort Bend
County, Texas, for the upgrading of the sewer and water
system;
--$2,000,000 to the Long Island Jewish Medical
Center in New Hyde Park, New York;
--$1,500,000 to the Southeastern Pennsylvania
Consortium for Higher Education for the purpose of data
collection applicable to social public policy;
--$50,000 to the Roslyn Boys and Girls Club in
Roslyn, Pennsylvania, for the completion of
renovations;
--$500,000 to the Clark County Heritage Center in
Springfield, Ohio, for the purpose of acquiring,
remodeling, and equipping the Old Marketplace;
--$1,350,000 to Buena Vista University in Buena
Vista County, Iowa, for the Distance Learning Center
for Community Outreach and Development;
--$1,000,000 to the City of Mandeville, Louisiana,
to develop a trailhead along the Tammany Trace Rails-
to-Trails;
--$2,000,000 to Goodwill Industries of Northeast
Pennsylvania in Scranton, Pennsylvania, to renovate and
convert the North Scranton Intermediate School into
low-income elderly housing;
--$900,000 to the Museum of Science and Industry in
Chicago, Illinois, for the purpose of restoring a U505
submarine;
--$1,750,000 to the Alliance Community Hospital in
Alliance, Ohio, for the purpose of developing the
Eldercare Complex;
--$250,000 to the Boys and Girls Club of Greater
Washington, D.C., for the purpose of creating a Capitol
Hill Youth Anti-Crime program;
--$450,000 to Rural Enterprises in the City of
Durant, Oklahoma, for the purpose of assisting
businesses in economically distressed rural areas;
--$350,000 to the Esperanza Community Housing
Corporation, $250,000 to the Central American Resource
Center, and $150,000 to the Little Tokyo Service Center
in Los Angeles, California, for the purpose of
implementing job training, career development, and
affordable housing programs;
--$350,000 to the Plymouth Renewal Center in
Louisville, Kentucky, for renovating and providing
tutoring, counseling and training programs for at-risk
youths;
--$500,000 to the City of Baldwinville, New York,
for the purpose of participating in and revitalizing
areas around the Canal Corridor Initiative;
--$1,000,000 for Pennsylvania Education and
Telecommunications Exchange Network (PETE NET), for the
purpose of developing a resource-sharing network;
--$2,000,000 to the Kentucky Highlands Investment
Corporation in London, Laurel County, Kentucky, for the
purpose of assisting start-up and expanding
enterprises;
--$500,000 for Onondaga Community College, in
Onondaga County, New York, for the Applied Technology
Center;
--$1,500,000 to the Geyserville Visitors Center in
Sonoma County, California, for the purpose of a
visitors and intermodal transportation center;
--$1,135,000 to the Canaan Community Development
Corporation in Louisville, Kentucky, for the purpose of
promoting entrepreneurial opportunities in economically
deprived areas;
--$500,000 for the Syracuse Community Health Center
in Syracuse, New York, for the purpose of establishing
accessible health care centers;
--$3,220,000 for enlarging and updating the
Scarborough Library at Shepherd College in
Shepherdstown, WV;
--$2,000,000 for the State of Maryland for
brownfields activities in the Baltimore, MD
metropolitan region;
--$2,000,000 for Ogden Utah, for the economic
redevelopment of downtown Ogden, UT;
--$2,000,000 for the renovation of the Albright-
Knox Art Gallery in Buffalo, NY;
--$400,000 for the completion of a regional
landfill in Charles Mix County, SD;
--$2,500,000 for the construction of a building
related to the Bushnell Theater in Hartford, CT;
--$2,500,000 for exhibit and program development at
Discovery Place in Charlotte, NC;
--$600,000 for the development of the West Maui
Community Resource Center in West Maui, HI;
--$1,350,000 for the renovation of the Paramount
Theater in Rutland, VT;
--$250,000 for the Vermont Science Center in St.
Albans, VT;
--$900,000 for the Lake Champlain Science Center in
Burlington, VT;
--$350,000 for Rutland County Community Land Trust
to restore low-income housing throughout the Rutland
City, Vermont, area;
--$2,000,000 for the renovation of the Tapley
Street Operations Center in Springfield, MA;
--$2,000,000 to develop abandoned industrial sites
in the city of Perth Amboy, NJ;
--$2,500,000 to the New Mexico Office of Cultural
Affairs for the New Mexico Hispanic Cultural Center;
--$400,000 for the Riverbend Research and Training
Park in Post Falls, ID;
--$2,500,000 in total funding to the University of
Missouri including $2,000,000 for the plant genetics
research unit and $500,000 for the Delta Research
Telecommunications Resource Center;
--$2,000,000 for the Cleveland Avenue YMCA in
Montgomery, AL, to build a cultural arts center;
--$1,000,000 for Covenant House in Anchorage, AK;
--$80,000 to complete construction of the senior
center in the city of East Providence, Rhode Island;
--$350,000 for Kids Bridge/New Jersey's Learning
Museum to renovate a site in Red Bank, Monmouth County,
New Jersey;
--$650,000 for the East Los Angeles Community Union
(TELACU) to revitalize the economy of East Los Angeles,
California;
--$1,000,000 to the Journey Museum in Rapid City,
SD, for Native American and minority outreach program;
--$500,000 for infrastructure development in Puna,
HI;
--$500,000 for a washeteria and related water
facilities for Sheldon Point, Alaska;
--$1,500,000 for training facilities and equipment
for Alaska One;
--$500,000 to Southwest Economic Development
Community Development Corporation of Seattle, WA, for
Rainer Valley Square;
--$500,000 for the completion of The CORE Center in
Chicago, IL, a free-standing, specialized, outpatient,
HIV and Infectious Disease Center;
--$1,000,000 for training facilities and equipment
in the City of Jackson, Mississippi for a downtown
multimodal transit center (phase II);
--$1,000,000 for the Carter County Chamber of
Commerce for trade and development activities for
Carter County, Montana;
--$500,000 for expansion of the community health
center in Allendale, SC;
--$600,000 to University of New Orleans in New
Orleans, LA, for Revitalization of Central Cities;
--$1,000,000 for Morgan State University in
Baltimore, MD, for studies related to fields of science
and mathematics;
--$2,000,000 for the expansion and start-up costs
associated with the expansion of Hofstra University's
Business Development Center;
--$1,000,000 for community development activities
at LeClede Town in St. Louis, MO;
--$1,500,000 for the University of Colorado for its
Health Sciences Center;
--$2,000,000 to the City of Compton, California,
for revitalizing distressed areas;
--$700,000 for the Philadelphia Development
Partnership for economic development in Philadelphia,
PA;
--$700,000 for Lehigh Valley, PA, for the
development of an aquatic and fitness center;
--$1,850,000 to Coastal Enterprises, Inc. of
Wiscasset, Maine, for its economic development and
rural housing programs;
--$550,000 to the Town of Easthampton,
Massachusetts, for the purchase and refurbishment of a
new senior center facility;
--$950,000 to Memorial Health Care, Inc. for
establishment of the Community Health Care Center of
Central Massachusetts in Worcester, Massachusetts;
--$950,000 to the Regional Center for Economic,
Community, and Professional Development of the
University of North Carolina at Pembroke, for
construction of a centralized facility;
--$950,000 to the Turtle Mountain Community College
in North Dakota, for completion of the Turtle Mountain
Economic Development and Education Complex;
--$950,000 to the Ruskin Tropical Aquaculture
Laboratory in Ruskin, Florida, for construction and
equipment for a hatchery, nutrition laboratory and
water quality laboratory;
--$500,000 to the to the City of Murfreesboro,
Tennessee, for renovation work at the Bradley Academy;
--$450,000 to the City of Hobart, Indiana, for
water and sewer line installation in the Green Acres
subdivision;
--$2,400,000 to the Metropolitan Miami Action Plan
to initiate the revitalization of the Overtown section
of Miami, Florida;
--$1,400,000 to the City of Toledo, Ohio, for the
continued revitalization of the downtown, near downtown
corridor, and community service centers;
--$150,000 to ``Friends of George C. Marshall'' of
Uniontown, Pennsylvania, for development of the George
C. Marshall Memorial Plaza in Uniontown;
--$400,000 to the Eureka Coal Heritage Foundation,
Inc. of Windber, Pennsylvania, for renovation of the
Arcadia Theater;
--$200,000 to Barnesboro Borough, Pennsylvania, for
construction of the West Branch Timber Pedestrian
Bridge;
--$550,000 to the Indiana Free Library, Inc. of
Indiana, Pennsylvania, to upgrade and renovate the
Indiana Free Library;
--$1,200,000 to the Pacific Science Center in
Seattle, Washington, for refurbishment and expansion;
--$500,000 to the California Science Museum
Foundation in Los Angeles for planning and design of
the Pacific Environmental Interactive Center;
--$400,000 to Chicanos Por La Causa for
construction of a small business incubator facility in
Phoenix, Arizona;
--$100,000 to the Urban League of Metropolitan St.
Louis, Missouri, for purchase and renovation of a
building to house its Community Outreach Center;
--$50,000 to the Harambee Institute of St. Louis,
Missouri, for purchase and renovation of an arts
education facility;
--$100,000 to the St. Louis Black Repertory Company
of St. Louis, Missouri, for purchase, expansion and
renovation of a facility;
--$100,000 to Better Family Life, Inc. of St.
Louis, Missouri, for construction of a new facility to
expand existing school-based programs and cultural
programs;
--$50,000 to the Portfolio Gallery and Educational
Center of St. Louis, Missouri, for renovation and
expansion of its cultural arts training and education
facility;
--$50,000 to the City of Wellston, Missouri, for
revitalization of its city hall;
--$50,000 to the City of Kinloch, Missouri, to
assist with the city's housing revitalization efforts;
--$400,000 to Columbia University in New York City
for its Audubon Research Park;
--$100,000 to the Hebrew Academy for Special
Children for its school in Rockland County, New York;
--$500,000 to Community Build, Inc. of Los Angeles,
for development of a business incubator and technology
center;
--$500,000 to Children's Hospital of Oakland,
California, for construction of research and laboratory
facilities as part of the Martin Luther King, Jr. Plaza
project;
--$500,000 to Nazareth College of Rochester, New
York, for library renovation, expansion and equipment;
--$500,000 to the Center for International Business
Education at the University of San Francisco for a
model program for training in international commerce,
environmental management and business ethics;
--$500,000 for the Urban League of Greater
Cleveland, Ohio, for programs in the area of
employment, job training, education, housing, and/or
elderly services;
--$500,000 for the Harvard Community Services
Center of Cleveland, Ohio, to expand the
intergenerational program involving youth and senior
citizens;
--$300,000 to the Helen S. Brown Senior Citizens
Center of East Cleveland, Ohio, to complete the
renovation of the Center and for expansion of elderly
services;
--$500,000 to Project East, Inc., DBA East
Cleveland Straight Talk, of Shaker Heights, Ohio, for
substance abuse counseling and prevention services;
--$500,000 to the Health and Education Institute of
the Olivet Housing and Community Development
Corporation of Cleveland, Ohio, for health and
education initiatives and services;
--$600,000 to the City of Grafton, West Virginia,
for economic development, community revitalization and
housing-related activities;
--$350,000 to Preston County, West Virginia, to be
distributed as follows: $175,000 for Arthurdale
Heritage, Inc. and $175,000 for the Kingwood MainStreet
program to pursue economic development, downtown
revitalization, and historic preservation initiatives;
--$450,000 to the City of Parkersburg, West
Virginia, for economic development and community
revitalization efforts;
--$800,000 to the City of Lorain, Ohio, for health
care conversion initiative at the site of the former
St. Joseph's Hospital;
--$200,000 to the Hampton University Aviation
Maintenance Training Learning Center of Hampton,
Virginia, to continue the development of courseware
central to the curriculum;
--$100,000 to the Diabetes Institute of Hampton,
Virginia, to assist in the development of diagnostic
and treatment protocols;
--$50,000 to the Hampton City Schools Achievable
Dream Program in Hampton, Virginia; and
--$500,000 for the Callaway, Florida, Waste Water
Expansion Program, to assist with the city's water
separation and expansion plans.
Language is included providing that cleanup and
redevelopment of areas deemed to be Brownfields are eligible
activities under CDBG as proposed by the Senate, and to exempt
a grant for Oglesby, Illinois, from the public comment waiting
period for an environmental assessment as proposed by the
House.
Language is included to create a new rural economic
development program funded at $25,000,000 instead of
$42,000,000 as proposed by the Senate. HUD is required to
target up to $4,000,000 each to areas in Alaska, Missouri, and
Iowa.
Additionally, $25,000,000 is included for a Neighborhood
Initiative program to test whether housing benefits can be
integrated more effectively with welfare reform initiatives. Of
the amount made available, $15,000,000 is provided to the
County of San Bernardino, California, to implement its
neighborhood initiative program. The County of San Bernardino
should work with the cities of San Bernardino, Highland, and
Redlands in designing its initiative.
The conferees encourage HUD, when awarding the
Neighborhood Initiative funds, to consider the following
factors: 1) economic development strategies that utilize local
community-based partnerships between businesses, non-profits
and the public sector; 2) neighborhood revitalization efforts
that integrate sustainable community and building design
processes; 3) input by residents and other stakeholders; 4)
creation of homeownership opportunities; 5) links between
housing programs and welfare reform initiatives in the
neighborhood; and 6) links between workforce development
strategies and economic development strategies.
Finally, a new provision is included that limits the use
of the $500,000,000 made available under the Community
Development Block Grants account in the 1997 Emergency
Supplemental Appropriations Act to not more than $3,500,000 for
the non-Federal cost-share of a levee project at Devils Lake,
North Dakota. The conferees direct that the remaining emergency
CDBG funds originally allocated by HUD for this project be made
available to the State of North Dakota for other emergency
activities consistent with the intent of the Supplemental
Appropriations and Rescissions Act of 1997 (Public Law 105-18).
In addition, HUD is directed to provide the State of North
Dakota with a waiver allowing it to use its annual CDBG
allocation for any remaining portion of the non-Federal cost-
share of this project. Finally, language is included that
prohibits HUD from providing any additional waivers in excess
of $100,000 in emergency CDBG funds for the non-Federal cost-
share of projects funded by the Secretary of the Army through
the Corps of Engineers.
This provision was added recognizing the serious risk of
flooding facing the community of Devils Lake while addressing
serious concerns that emergency CDBG funding has become an
unregulated fund of Federal dollars which are allocated without
regard to standard requirements or adequate oversight. The
conferees are very concerned that the unregulated use of CDBG
funds will lead to uses which are unintended and bear little
relation to the broad requirements of the traditional CDBG
program. The growth of costs and the increasingly broad uses
for emergency activities associated with both the CDBG program
and the Federal Emergency Management Agency programs are
troubling to the conferees, especially because these costs
threaten the ability of the VA/HUD Appropriations Subcommittees
to fund adequately the other programs within their
jurisdiction.
brownfields redevelopment
The conferees have included $25,000,000 to fund HUD's
contribution to resolving Brownfields problems. This funding is
to be used for activities eligible under the CDBG program. The
conferees direct HUD to coordinate activities with other
agencies responsible for environmental clean up activities and
to provide the committees of jurisdiction with semi-annual
reports describing coordinated efforts and an explanation of
how this program, which has no specific authorization, will be
implemented.
empowerment zones and enterprise communities
Appropriates $5,000,000 for empowerment zones and
enterprise communities for planning purposes. The Senate
proposed to fund the program at $25,000,000 and the House did
not include funds for this purpose. The conferees expect HUD to
develop guidelines for implementing this program.
Furthermore, HUD is directed to ensure that the ongoing
evaluation by Abt Associates evaluates the performance of
existing EZ/ECs. The study shall measure the success of
existing EZ/ECs in meeting such objectives as job creation,
reducing resident unemployment in the EZ/EC, and enhancing
public safety. The study should provide recommendations for
improving existing EZ/EC performance and crafting more
effective guidelines for strategic plans for any possible
future EZ/ECs.
home investment partnerships program
Appropriates $1,500,000,000 for the HOME program, as
proposed by the House rather than $1,400,000,000 as proposed by
the Senate. Of this amount, $20,000,000 is included for Housing
Counseling as proposed by the Senate rather than $15,000,000 as
proposed by the House, and $10,000,000 is included for a
program to demonstrate ways to expand the secondary market for
non-conforming loans as proposed by the House. The conferees
underscore their intention that this demonstration focus solely
on strategies to expand the secondary market for affordable
home mortgage credit from private lenders. The conferees agree
that participants in the demonstration should be selected on a
competitive basis based on the criteria in the statute and
contained in the House report. It is expected that the
credibility and impact of the demonstration will be maximized
to the extent that the Secretary awards priority in the
selection process to organizations which have the following
characteristics: 1) statewide or multi-state service areas; 2)
sophisticated existing data collection capabilities, including
adequate loan portfolio monitoring and analysis systems; 3) a
demonstrated strong track record of leveraging public-sector
funds for secondary market activities, and willingness to match
funds awarded under this section with non-Federal funds; and 4)
a mix between rural and urban loans.
homeless assistance grants
Deletes language proposed by the Senate which allows HUD
to transfer and merge any unobligated balances from Homeless
programs into a consolidated account. This issue will be
addressed when a consolidated homeless assistance program is
authorized and enacted.
Housing Programs
housing programs for special populations
Includes language authorizing HUD to utilize amounts
appropriated to these programs to provide supportive services
as proposed by the Senate. The House did not include such
language. The conferees believe it is appropriate that
supportive services provided for persons who live in buildings
financed with these funds should be paid for from these
accounts rather than decreasing the scarce supportive services
funds provided for families residing in public and assisted
housing.
The conferees reaffirm report language contained in both
House and Senate committee reports regarding the Office of
Manufactured Housing, but have decided against providing a
separate account for that program office.
Federal Housing Administration
FHA-MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT
Transfers not more than $12,112,000 from amounts derived
from the FHA-MMI fund to the Office of Inspector General as
proposed by the Senate instead of transferring $7,112,000 as
proposed by the House.
Policy Development and Research
research and technology
Appropriates $36,500,000 for research and technology
related to housing issues instead of $39,000,000 as proposed by
the House and $34,000,000 as proposed by the Senate.
The conferees have provided a set-aside of $500,000 from
the Department's Research and Technology account for the
National Academy of Public Administration (NAPA) to evaluate
HUD's efforts to implement needed management systems and
processes. Systems to be evaluated include contracting
procedures, basic administrative organization, development of
personnel requirements based on meaningful measures, and HUD's
compliance with the Government Performance and Results Act.
This set-aside augments $1,000,000 appropriated under the 1997
Emergency Supplemental Appropriations Act.
Currently, the General Accounting Office (GAO) and the
HUD Inspector General (IG) are reviewing HUD's contracting
requirements and implementation procedures; therefore, the
conferees do not intend for NAPA to duplicate the GAO's and/or
the IG's work. It is intended, however, that NAPA's study will
complement the other reviews.
Fair Housing and Equal Opportunity
fair housing activities
Appropriates $30,000,000 for fair housing activities,
$15,000,000 of which is for activities under the Fair Housing
Initiatives Program (FHIP) as proposed by the House instead of
$10,000,000 for FHIP as proposed by the Senate.
Management and Administration
salaries and expenses
Appropriates $1,000,826,000 for salaries and expenses
instead of $1,005,826,000 as proposed by the House and
$954,826,000 as proposed by the Senate. This modest decrease
from the budget request is included to encourage the Secretary
to be more forthcoming about providing information to Congress
when it is requested.
HUD is undergoing Department-wide reorganization to
improve delivery of services, management, and performance. The
conferees agree that HUD must reorganize the manner in which it
operates if it is to survive into the next century. It is the
strongly held belief of the conferees that HUD must be in a
position, both programmatically and operationally, to provide
the highest level of opportunity for Americans to live in
decent, safe and affordable homes.
The reorganization plan suggested by HUD involves
consolidating offices and program functions. Additionally, the
plan implements Congressional direction to decrease staff
levels. Because these actions will change the manner in which
HUD's services are provided, and where they are provided,
Congress must be kept well-informed about how they are to be
implemented, how they will impact Congressionally-mandated
programs, and how they will affect services at a local level.
Accordingly, the conferees direct HUD to provide the
information listed below:
Submission Date:
January 15, 1998--1. Cost-benefit analysis of the newly
created offices, including the Assessment Center, the Section 8
Center, and the Enforcement Center;
January 15, 1998--2. Schedule of events--rough estimate
of dates for plan implementation, including when HUD will
undertake and complete significant actions (i.e., new offices,
staff moves);
Upon submission of President's Budget Request--3.
Annualized funding projections needed to carry out the
management plan;
January 15, 1998--4. Explanation of modernization and
integration of financial/management information systems and how
the systems will develop internal controls and improve HUD's
ability to monitor and measure program performance;
January 15, 1998--5. Explanation of the resources
(financial, information, staff) needed to effectively manage
and operate HUD's core programs; and
Enactment of VA/HUD Appropriations Measure--6. Legal
analysis of Dole Amendment applicability to HUD's
reorganization plan.
The conferees support the emphasis and function of the
Department's proposed Enforcement, Assessment, and Section 8
Centers and do not want to impede these muchneeded reforms.
However, as the Management 2020 plan involves location decisions,
including moving staff from Headquarters, until Congress is provided
with the information listed above, and the committees of jurisdiction
have had a reasonable opportunity to review and to comment upon this
information, HUD is directed to take no significant actions that
involve geographically relocating staff or entering into binding
commitments for office space, as related to the three new proposed
center locations: Namely, the Assessment Center, the Enforcement
Center, and the Section 8 Center.
office of inspector general
Appropriates $66,850,000 for the Office of Inspector
General as proposed by the House instead of $57,850,000 as
proposed by the Senate. Of this amount, $16,283,000 is
transferred from various FHA funds as proposed by the Senate
instead of $11,283,000 as proposed by the House and $10,000,000
is provided for Operation Safe Home as proposed by the House
instead of $5,000,000 as proposed by the Senate.
office of federal housing enterprise oversight
salaries and expenses
Appropriates $16,000,000 for the Office of Federal
Housing Enterprise Oversight (OFHEO) rather than $16,312,000 as
proposed by the House and $15,500,000 as proposed by the
Senate. The conferees are concerned about OFHEO's growth as a
bureaucracy instead of as an efficient regulatory office.
Additionally, the conferees encourage OFHEO to meet its
primary statutory mission of establishing a balanced and
effective risk-based capital standard for the Government
Sponsored Enterprises (GSEs), as required under the Housing and
Community Development Act of 1992.
administrative provisions
Several provisions included in either the House or Senate
bills were not adopted by the conferees. Section numbers have
been re-designated accordingly.
Section 201. Extends certain public and assisted housing
reforms for this fiscal year, as proposed by the Senate. The
House included language regarding minimum rents.
Section 203. Waives the requirement that the City of
Oglesby, Illinois, have public hearings concerning an
environmental assessment, under the Housing and Community
Development Act of 1974, as proposed by the House.
Section 204. Extends a provision that provides an
incentive for refinancing projects with FAF bonds to lower the
cost of section 8 assistance, as proposed by the Senate.
Section 206. Reprograms $7,100,000 from an industrial
park to be used for a Negro Leagues Baseball Museum and jazz
museum, as proposed by the Senate.
Section 207. Prohibits prosecution of persons under the
Fair Housing Act if the person is engaged in lawful activity,
as proposed by the Senate.
Section 208. Requires HUD to maintain public notice and
comment rulemaking, as proposed by the Senate.
Section 209. Authorizes cleanup and economic development
of Brownfields as an eligible activity under the CDBG program,
as proposed by the Senate.
Section 210. Permits partial payment of claims on
hospital and health care facilities, as proposed by the Senate.
Section 211. Extends for one year the FHA single family
streamlined downpayment program for Alaska and Hawaii as
proposed by the Senate. In addition, the conferees direct HUD
to study the proposal to streamline the FHA downpayment formula
and to explain its impact on the continental United States. The
study should examine how the proposed downpayment formula would
favorably or adversely affect each State, how it would impact
the FHA insurance fund, whether it would improve homeownership
opportunities for low- and moderate-income families, and
whether it would cause inappropriate competition by the FHA
with mortgage insurance companies. The study should be
completed by March 1, 1998.
Section 212. Includes language to provide flexibility for
a HOPE VI project in New York, as proposed by the Senate.
Section 213. Includes language to provide HUD with
flexibility to make rehabilitation grants and loans in
disposing of HUD-owned and HUD-held properties, as proposed by
the Senate.
Section 215. Includes language to provide financing
alternatives to enhanced vouchers in certain section 236
projects.
Section 216. Includes language making a technical
correction to the nursing home insurance program.
Section 217. Includes language to preserve funding for
existing HOPWA grantees in the State of Wisconsin to correct an
anomaly in the formula which can result in the loss of funds
for a state when incidence of AIDS in a large city increases.
The conferees reaffirm the direction included in the House
report for HUD to examine all problems caused by the existing
HOPWA formula and recommend improvements.
Section 218. Includes language to cancel the principal
and interest due on HUD-guaranteed water and sewer bonds issued
by the Village of Robbins, Illinois.
TITLE III--INDEPENDENT AGENCIES
American Battle Monuments Commission
salaries and expenses
Appropriates $26,897,000 for salaries and expenses as
proposed by the House, instead of $23,897,000 as proposed by
the Senate.
Chemical Safety and Hazard Investigation Board
salaries and expenses
Appropriates $4,000,000 for the Chemical Safety and
Hazard Investigation Board as proposed by the Senate. The House
had provided no funding for the Board.
The funding provided for fiscal year 1998 will permit the
Board to begin start-up operations, including the hiring of up
to 20 employees through the fiscal year. While the conferees
have agreed to provide funding for the Board, they nevertheless
remain concerned that the operational costs not become
excessive over the next few years. Rather, the conferees expect
the Board to make careful, deliberate decisions with respect to
the growth and expansion of both operations and staff. The
conferees anticipate that a substantial increase in
appropriations in the next few years will not be feasible.
Department of the Treasury
community development financial institutions
community development financial institutions fund program account
Appropriates $80,000,000 for the Community Development
Financial Institutions Fund, instead of $125,000,000 as
proposed by the House. The Senate did not provide an
appropriation for this account. The conferees have also
included in the bill, language restricting the rate of
consultants hired by the Fund.
The conferees are aware of and share concerns raised
regarding implementation of the program. The conferees
recognize and commend the Department of the Treasury for taking
significant steps in recent months to improve systems,
procedures, and policies. The conferees agree that action
should be taken to ensure, among other things, that: (a)
appropriate and timely documentation is provided for the awards
process and the evaluation and selection of applicants to
receive assistance; (b) all successful applicants are selected
pursuant to uniform standards using an objective evaluation
system; (c) no individual involved in the evaluation and
selection of applicants has a conflict or apparent conflict of
interest; (d) none of the funds provided for this program are
used for contracts for management or policy consulting
services, except for contracts entered into in accordance with
federal acquisition regulations with firms having recognized
management or policy consulting expertise, or with individuals
or firms having recognized expertise in community development
lending or investing or services related to review of
applications for grants and other awards from the Fund; and (e)
ensure sound and impartial administration. The conferees urge
the Department to remain diligent in working on systems to
ensure proper accountability and management of the Fund's
programs.
In place of the General Accounting Office report
requested by the Senate, the conferees agree that the GAO
should conduct a review of the CDFI program and report to the
Congress on the implementation and effectiveness of the program
in achieving its goals and objectives.
Consumer Product Safety Commission
salaries and expenses
Appropriates $45,000,000 for the Consumer Product Safety
Commission as proposed by the Senate instead of $44,000,000 as
proposed by the House.
Corporation for National and Community Service
national and community service programs operating expenses
Appropriates $425,500,000 for national and community
service programs operating expenses, instead of $200,500,000 as
proposed by the House and $420,500,000 as proposed by the
Senate.
Limits funds for administrative expenses to not more than
$27,000,000, instead of $29,000,000 as proposed by the House
and $25,000,000 as proposed by the Senate. This amount includes
funds necessary to administer the National Service Trust.
Limits funds for educational awards to not more than
$70,000,000, of which not to exceed $5,000,000 shall be
available for national service scholarships for high school
students performing community service, instead of $69,000,000
and $10,000,000, respectively, as proposed by the House and
$59,000,000 and zero, respectively, as proposed by the Senate.
The amount for educational awards is higher than the amount in
either the House or Senate bill and results from the increase
in funding for AmeriCorps grants. The conferees request that
the Corporation provide to the Committees on Appropriations a
report by June 30, 1998, on the feasibility of privatizing the
National Service Trust, including the costs of privatization
and recommendations on how privatization could be implemented.
Limits funds for AmeriCorps grants to not more than
$227,000,000, instead of $201,000,000 as proposed by the House
and $215,000,000 as proposed by the Senate.
Inserts language limiting funds for national direct
programs to not more than $40,000,000 as proposed by the
Senate. The House did not propose a limitation on national
direct programs.
Deletes language proposed by the Senate earmarking
$20,000,000 of the appropriation for the America Reads
Initiative. The House did not propose such an earmarking. The
conference agreement includes $25,000,000 for literacy and
mentoring activities.
Deletes language proposed by the Senate restricting other
funds available to the Corporation from being used for
personnel compensation and other administrative expenses of
certain offices. The House did not propose such language. While
the conferees are providing this additional flexibility, the
Corporation is expected to provide a detailed explanation in
the operating plan on how it plans to coordinate the use of
administrative funds from any other agency, office or source to
administer its operations.
office of inspector general
Appropriates $3,000,000 for the office of Inspector
General as proposed by the Senate, instead of $2,000,000 as
proposed by the House.
Court of Veterans Appeals
salaries and expenses
Appropriates $9,319,000 for salaries and expenses as
proposed by the House, instead of $9,320,000 as proposed by the
Senate.
Environmental Protection Agency
Appropriates $7,363,046,000 for the Environmental
Protection Agency for fiscal year 1998 instead of
$7,205,077,000 as proposed by the House and $6,975,920,000 as
proposed by the Senate. The conferees note that the budget
agreement between the Congress and the Administration called
for the ``operating programs'' of the Agency to be funded at a
level totaling just over $3,400,000,000. The funding provided
for these operating programs in this agreement totals nearly
$3,350,000,000, thus meeting the spirit of this agreement.
As in past years, the conferees agree that the Agency
must limit transfers of funds between programs and activities
to not more than $500,000, except that for the Environmental
Programs and Management account only, the Agency may transfer
funds of not more than $500,000 between programs and activities
without prior notice to the Committees, and of not more than
$1,000,000 without prior approval of the Committees. No changes
may be made to any account or program element, except as
approved by the House and Senate Committees on Appropriations,
if it is construed to be policy or a change in policy. Any
activity or program cited in the joint explanatory statement of
the committee of conference shall be construed as the position
of the conferees and should not be subject to reduction or
reprogramming without prior approval. It is the intent of the
conferees that all carryover funds in the various
appropriations accounts are subject to normal reprogramming
requirements as defined herein.
science and technology
Appropriates $631,000,000 for science and technology
instead of $629,223,000 as provided by the House and
$600,000,000 as provided by the Senate. The conferees have
included new bill language which provides $49,600,000 for a
particulate matter research program in lieu of language
contained in the House bill.
The conferees have agreed to the following increases to
the budget request:
1. $1,250,000 for continuation of the California Regional
PM 10 & 2.5 air quality study.
2. $2,500,000 for EPSCoR.
3. $500,000 for continuation of a study of livestock and
agricultural pollution abatement at Tarleton State University.
4. $3,000,000 for the Water Environment Research
Foundation.
5. $2,000,000 for continued research on urban waste
management at the University of New Orleans.
6. $1,300,000 for continued oil spill remediation
research at the Louisiana Environmental Research Center at
McNeese State University.
7. $2,000,000 for the Mickey Leland National Urban Air
Toxics Research Center. The conferees recognize the value of
the air toxics research supported by the Mickey Leland National
Urban Air Toxics Research Center in Houston, Texas. However,
the conferees are aware that the Center has developed its own
method to fill vacancies on the Board of Directors. Because the
appointment of the Board of Directors provides for
Congressional oversight and assures the continued success of
the Center and its undertakings, it is the intent of the
conferees that the Leland Center immediately revise its method
of appointment of Directors consistent with law and with the
original Congressional intent regarding appointment of
Directors.
8. $4,000,000 for the American Water Works Association
Research Foundation, including $1,000,000 for continued
research on arsenic.
9. $3,000,000 for the National Decentralized Water
Resource Capacity Development Project, in coordination with
EPA, for continued training and research and development.
10. $1,500,000 for the Integrated Petroleum Environmental
Consortium project, to be cost-shared.
11. $1,750,000 for continued research at the
Environmental Lung Center of the National Jewish Medical and
Research Center in Denver.
12. $6,000,000 for continued research of the Salton Sea,
including $1,000,000 to the University of Redlands and
$5,000,000 for the Salton Sea Authority.
13. $2,000,000 for research on treatment technologies
relating to perchlorate within the Crafton-Redlands Plume, to
be conducted through the East Valley Water District,
California.
14. $2,000,000 for the Lovelace Respiratory Institute to
establish a National Environmental Respiratory Center to
coordinate research and information transfer.
15. $1,000,000 for the Center for Air Toxic Metals at the
Energy and Environmental Research Center.
16. $1,000,000 for the Texas Regional Institute for
Environmental Studies to identify and test new cost-effective
environmental restoration technologies.
17. $1,000,000 for the Institute for Environmental and
Industrial Science to develop new technologies for controlling
radioactive waste, solid waste, and other emissions.
18. $500,000 for the clean air status and trends network.
19. $1,500,000 for Johns Hopkins University's School of
Hygiene and Public Health to establish a National Center for
Environmental Toxicology and Epidemiology.
20. $1,000,000 to establish the Center for Estuarine and
Coastal Ocean Environmental Research to coordinate and further
ongoing coastal and environmental research being conducted at
the University of South Alabama.
21. $2,000,000 for continuation of an initiative to
transfer technology developed in the federal laboratories to
meet the environmental needs of small companies in the Great
Lakes region, to be accomplished through a NASA-sponsored
Midwest regional technology center working in collaboration
with an HBCU from the region.
22. $6,000,000 for the Mine Waste Technology Evaluation
Program and Berkeley pit integrated demonstration activities
through the National Waste Technology Testing and Evaluation
Center.
23. $1,500,000 to support external research on
Pfiesteria. The conferees are concerned about the recent rash
of fish killings and human sickness due to a marine biotoxic
outbreak labeled Pfiesteria, in east coast waterways. In
complementing current local and state efforts, the conferees
direct a national research program that would evaluate
competitive, peer-reviewed proposals to understand the causes,
mechanisms, and health and environmental effects of Pfiesteria.
Additional funding is appropriated in the environmental
programs and management account.
The conferees have agreed to the following reductions
from the budget request:
1. $5,078,000 from the Climate Change program.
2. $6,218,000 from the Global Change program.
3. $2,000,000 from the Advanced Measurement Initiative.
4. $8,000,000 from the new Environmental Monitoring for
Public Access and Community Tracking program.
5. $5,000,000 from graduate academic fellowships.
6. $7,000,000 from advanced funding of a planned fiscal
year 1998 lease requirement and savings due to a rate
recalculation for the Working Capital Fund.
7. $21,273,400 as a general reduction.
The conferees are aware that orimulsion, a mixture of
bitumen and water, is being considered for generating
electricity in the United States. While orimulsion has been
used in several countries including Japan, China, Italy and
Canada's maritime provinces, it has not been utilized within
the United States. Because little is known about the risks
associated with the introduction of this new product, the
conferees direct EPA to initiate a research activity to provide
better scientific data on the qualities and characteristics of
this product and the potential environmental impact of its
introduction.
In addition to the funds specifically provided for
perchlorate research within the Crafton-Redlands Plume, the
conferees direct the Agency to work with the Department of
Defense, the National Institute of Environmental Health
Sciences, and other appropriate federal and state agencies to,
(1) assess the state of the science on the health effects of
perchlorates on humans and the environment and the extent of
perchlorate contamination of our nation's drinking water
supplies, and, (2) make recommendations to the House and Senate
Committees on Appropriations within six months of enactment of
this Act on how this emerging problem might be addressed.
The conferees note the important ongoing research
activities at EPA to develop a comprehensive view of the air
quality impacts resulting from swine confinement operations.
The EPA is directed to coordinate these research activities
working in conjunction with those efforts currently underway at
the Agricultural Research Service and with other public and
private research efforts.
Following consultation with the Environmental Protection
Agency, the National Academy of Sciences, and numerous
scientific and research and stakeholder groups, the conferees
have developed a mechanism which, when implemented, will go far
toward increasing the breadth of knowledge and filling research
gaps regarding the potential health effects of fine particulate
matter (PM). The recommendation of the conferees is meant to
build on the research which has already been planned, is
underway, or has been completed by EPA, NIEHS, NAS, HEI, and
numerous other public and private entities, and its success
will rely on the hard work and continued good will of all
interested parties.
Although EPA recently issued a revised standard for PM,
the Agency also indicated the standard will have no regulatory
impact until after the next National Ambient Air Quality
Standards (NAAQS) review, currently planned for 2002. The
conferees believe a unique opportunity now exists to put into
place the mechanism to establish a comprehensive, peer-
reviewed, near- and long-term research program which will
benefit both the Legislative and Executive branches in
decision-making activities regarding PM in the coming years.
To this end, the conferees have included bill language
which specifically provides $49,600,000 for particulate matter
research, and further provides that within 30 days of enactment
of this Act, EPA shall enter into a contract or cooperative
agreement with the National Academy of Sciences (NAS) to
develop a comprehensive, prioritized, near- and long-term
particulate matter research program, as well as a plan to
monitor how this research program is being carried out by all
participants in the research effort. The conferees intend the
NAS to develop a near-term research plan within four months of
execution of the contract with EPA, and expect a long-term plan
to be completed within twelve months of execution of the
contract. Both plans should be developed on as close to a
consensus basis as is practicable following consultation and
comprehensive discussions with, but not limited to,
representatives of the EPA, the National Institute of
Environmental Health Sciences (NIEHS), the Department of Energy
(DOE), and the National Oceanic and Atmospheric Administration
(NOAA), as well as representatives from such organizations as
the Health Effects Institute (HEI), the North American Research
Strategy for Tropospheric Ozone (NARSTO), the Chemical Industry
Institute of Technology (CIIT), the Lovelace Inhalation
Toxicology Research Institute, the American Lung Association,
the Electric Power Research Institute (EPRI), EPA's Science
Advisory Board and Clean Air Scientific Advisory Committee, and
other qualified personnel representing government, industry,
and the environmental community. Upon completion of the
research plans, the NAS shall simultaneously provide copies to
the Congress, to EPA, and to all participating parties.
It is the intention of the conferees that the plan is to
be the principal guideline for the Agency's particulate matter
research program over the next several years. The conferees
expect the Agency to implement the plan, including the conduct
of appropriate peer review and the distribution of intramural
and extramural funds, in a manner which assures that research
as determined in the plan will proceed in an orderly and timely
fashion, and according to the priority basis outlined by NAS.
The conferees also expect the NAS to monitor the implementation
of the research plan and periodically report to the Congress as
to the progress of the NAS plan. Should EPA, after its own
analysis, disagree with any research topic or priority ranking
as determined in the plan, or with any other aspect of the
plan, the conferees direct the Agency to provide the Congress
with a detailed analysis of such a disagreement, as well as
with a description of what the Agency proposes in lieu thereof.
EPA is expected to move forward immediately with its PM
research program as outlined in the fiscal year 1998 budget
submission. Upon delivery of the NAS research plan, however,
the conferees expect the Agency and other federal entities as
listed above to review their ongoing particulate matter
research activities and, where appropriate, re-focus such
activities so as to be consistent with the NAS research plan.
The funds provided above the budget request should be targeted
to filling research gaps outlined by NAS and not already
planned for fiscal year 1998.
In administering the research plan, the conferees expect
the Agency to be responsible for the timely announcement of all
requests for research proposals, for the thorough review of
such proposals, and for the granting and auditing of all funds
to conduct such research proposals. Given the importance of
developing and publishing as much new research as possible
prior to the next NAAQS review planned for PM, the Agency
should take every step possible to expedite the delivery of
available research funds for both intramural and extramural
recipients. Moreover, in the making of specific grants or, in
the case of other governmental agencies, a cooperative research
agreement pursuant to the research plan, the Agency should be
mindful of the various talents and expertise of each of the
aforementioned organizations or other research grant applicants
may have so as to maximize to the greatest extent possible the
quality of the research that is to be conducted.
The conferees understand that the most immediate, or
``near-term'' PM research needs include, but are not limited
to, topics such as toxicological and biological mechanisms,
source apportionment, human exposure assessment and monitoring,
ambient measurement methods, and epidemiology. NAS is thus
expected to focus on these as well as other high priority
topics as part of its near-term research plan.
In addition, up to $8,000,000 of the funds provided
herein are to be used to create up to five university-based
research centers focused on PM-related environmental and health
effects. EPA will select these centers through a competitive
peer review process and will ensure consistency with the final
research plan formulated by the process outlined above. The
centers program is intended to help address the most pressing
unanswered questions involved in the air particulate field. A
governing criterion for the selection of the proposed centers
should be their ability to bring together bio-medical and
public health scientists, engineers, environmental scientists,
economists, and policy analysts as part of a coordinated and
comprehensive data analysis and research effort.
The conferees direct that, prior to completion of the
research plan, adequate funds be made available to support on
ongoing effort to conduct a thorough inventory of all federal
and non-federal research on particulate matter, to initiate key
term research, and to conduct a thorough reanalysis of all key
long-term studies relating to particulate matter. Priority in
the award of grants as outlined in the preceding sentence
should be given to organizations which are established
independent research institutes funded in partnership with EPA.
Finally, the conferees expect that all research data
resulting from this funding will become available to the
public, with proper safeguards for researchers' first right of
publication, for scientific integrity, for individuals
participating in studies, for proprietary commercial interests,
and to prevent scientific fraud and misconduct.
The issue of the new particulate matter standards as
outlined by EPA in July of this year, and the potential
regulations that may result from these new standards, has
resulted in an emotional and politically charged debate
principally on the potential economic impacts of regulations
based on the new standard. What has unfortunately been
diminished in these debates is the almost universal recognition
that considerable scientific questions relative to particulate
matter remain to be answered. The conferees recognize that
while reasonable people may differ as to the interpretation of
the facts and that different policy judgments may be arrived
at, sufficient facts are not yet available to proceed with
future regulations for a new particulate standard. The
conferees note that this may be the only realistic opportunity
to enlist the support of both the public and private sectors to
maximize the use of science so as to better determine the
answers that will some day guide future regulatory actions
regarding particulate matter.
environmental programs and management
Appropriates $1,801,000,000 for environmental programs
and management as proposed by the Senate instead of
$1,763,352,000 as proposed by the House.
The conferees have agreed to the following increases to
the budget request:
1. $2,500,000 for the Michigan Biotechnology Institute
for continued development of viable cleanup technologies.
2. $900,000 for the Lake Wallenpaupack, Pennsylvania
environmental restoration project.
3. $372,000 for the Saint Vincent watershed environmental
restoration project.
4. $500,000 for continued activities of the Small
Business Pollution Prevention Center at the University of
Northern Iowa.
5. $1,000,000 for the National Estuary Program, including
$400,000 for Barnegat Bay. In addition, the conferees note
their support for the full budget request for the Agency's
South Florida/Everglades initiative, including funding for the
EPA office in South Florida.
6. $2,372,000 for the Great Lakes Program. Included in
the total program level is $14,700,000 for the Great Lakes
National Program Office.
7. $250,000 for design for a non-indigenous species
dispersal barrier in the Chicago shipping and sanitary canal
pursuant to Sec. 1202 of the National Invasive Species Act, to
be cost-shared.
8. $500,000 for continued work on the Ohio River
watershed pollutant reduction program, including a study of
dioxin levels in the Basin, to be cost-shared.
9. $2,000,000 for continuation of the Sacramento River
Toxic Pollution Control Project, to be cost-shared.
10. $2,500,000 for a water reuse demonstration project in
Yucca Valley ($800,000) and a groundwater treatment
demonstration project in 29 Palms ($1,700,000), California.
11. $700,000 for ongoing activities at the Canaan Valley
Institute.
12. $3,000,000 for the Southwest Center for Environmental
Research and Policy (SCERP).
13. $4,000,000 for the National Institute for
Environmental Renewal to establish a regional environmental
data center, and to develop an integrated, automated water
quality monitoring and information system for watersheds
impacting the Chesapeake Bay.
14. $500,000 for continuation of the Small Water Systems
Institute at Montana State University.
15. $5,325,000 for rural water technical assistance
activities and groundwater protection bringing the total
program to $13,325,000 with distribution as follows: $8,200,000
for the National Rural Water Association; $2,100,000 for Rural
Community Assistance Program; $400,000 for the Groundwater
Protection Council; $1,550,000 for Small Flows Clearinghouse;
$1,000,000 for the National Environmental Training Center; and
$75,000 for the National Groundwater Foundation.
16. $2,000,000 for an environmental education center in
Highland, California.
17. $3,000,000 for continuation of the New York and New
Jersey dredge decontamination project.
18. $1,000,000 for continued work on the water quality
management plan for the Skaneatles, Otisco and Owasco Lake
watersheds.
19. $400,000 for continued work on the Cortland County,
New York aquifer protection plan.
20. $300,000 for the NAS to conduct a study of the
effectiveness of EPA's inspection and maintenance programs.
21. $400,000 for a non-profit organization to implement
an action plan to accelerate the international phase-out of
leaded gasoline.
22. $2,000,000 for the creation of five small public
water system technology assistance centers pursuant to section
1420(f) of the Safe Drinking Water Act, as amended.
23. $500,000 for a waste water reuse study in the
Victorville, California area.
24. $3,400,000 for Lake Weequahic cleanup efforts
($3,000,000) and water quality initiatives at Lake Hopatcong
($400,000), New Jersey.
25. $1,000,000 ($500,000 each) for small public water
system technology centers at the University of Missouri-
Columbia and at Western Kentucky University.
26. $3,000,000 to continue the demonstration project
involving leaking fuel tanks in rural Alaska villages.
27. $250,000 for the Nature Conservancy of Alaska for
protection of the Kenai River watershed.
28. $1,250,000 to continue the onsite wastewater
treatment demonstration program through the Small Flows
Clearinghouse, including efforts initiated last year in flood-
ravaged areas.
29. $2,000,000 for the New York City watershed protection
program.
30. $500,000 for the Treasure Valley hydrologic project.
31. $2,500,000 for the King County, Washington molten
carbonate fuel cell demonstration project at the Renton
wastewater treatment plant.
32. $$800,000 for the National Center for Vehicle
Emissions Control and Safety to establish an On-Board
Diagnostic Research Center.
33. $500,000 to continue the Compliance Assistance Center
for Painting and Coating Technology.
34. $200,000 to complete the cleanup of Five Island Lake.
35. $500,000 for the Ala Wai Canal watershed improvement
project.
36. $400,000 for the Maui algal bloom project.
37. $100,000 for the Design for the Environment for
Farmers Program to address the unique environmental concerns of
the American Pacific area and the need to develop and adopt
sustainable agricultural practices for these fragile tropical
ecosystems.
38. $1,500,000 for the Lake Champlain management plan.
39. $600,000 for the final year of funding for the solar
aquatic wastewater treatment demonstration in Burlington,
Vermont, to be cost-shared.
40. $1,000,000 for the Alabama Department of
Environmental Management to coordinate a model water/wastewater
operating training program.
41. $150,000 to establish a regional training center at
the Kentucky Onsite Wastewater Center.
42. $550,000 for the Idaho water initiative.
43. $1,750,000 for the Three Rivers watershed protection
demonstration project, to develop an overall master plan to
eliminate more than 40 separate sanitary sewer overflows in the
Three Rivers area of Allegheny County, Pennsylvania.
44. $750,000 to continue the Resource and Agricultural
Policy Systems program.
45. $1,250,000 for the design of an innovative granular
activated carbon water treatment project in Oahu.
46. $2,000,000 for the Food and Agricultural Policy
Research Institute's Missouri Watershed Initiative project to
link economic and environmental data with ambient water
quality.
47. $1,500,000 for the National Alternative Fuels
Training program.
48. $300,000 for the California Urban Environmental
Research and Education Center.
49. $1,000,000 to continue the implementation of a
wetlands-based potable water reuse program for the City of West
Palm Beach.
50. $700,000 for the Long Island Sound office.
51. $2,000,000 for the University of Missouri
Agroforestry Center to support the agroforestry floodplain
initiative on a partnership basis.
52. $300,000 for the Northeast States for coordinated air
use management.
53. $750,000 for the Chesapeake Bay Program to initiate a
small watershed grants program for the implementation of
cooperative tributary basic strategies that address the Bay's
water quality and living resource needs.
54. $1,300,000 for environmental justice small community
grants, bringing the total program to $2,000,000.
55. $240,000 for the water quality testing program along
the New Jersey and New York shorelines.
56. $1,000,000 for the Soil Aquifer Treatment research
program for indirect potable reuse of highly treated domestic
wastewater being conducted in Arizona and California.
57. $1,500,000 for wastewater training grants under
section 104(g) of the Clean Water Act.
58. $2,000,000 for the National Academy of Public
Administration to design and manage a series of independent
evaluations of recent EPA initiatives to improve the
effectiveness and efficiency of EPA activities. These studies
shall also assess how lessons learned can be built into ongoing
agency programs. The conferees note that EPA has yet to develop
a program evaluation capacity, a critical element of meeting
the requirements of the Government Performance and Results Act
and ensuring the most effective allocation of resources. EPA is
to enter into an agreement with NAPA within 90 days, so that
the reports may be made available to the Congress within two
years.
59. $1,500,000 to support response and monitoring
efforts, public information functions, and cross-Agency
coordination and analysis to address the causes, mechanisms,
and health and environmental effects of Pfiesteria, as
described in the Science and Technology account.
60. $400,000 to continue efforts to ensure smooth
implementation of notification of lead-based paint hazards
during real estate transactions through the Alliance to End
Childhood Lead Poisoning.
The conferees have agreed to the following decreases from
the budget request:
1. $693,000 from managerial support within the Office of
the Administrator.
2. $1,000,000 from GLOBE.
3. $9,000,000 from the Montreal Protocol Multilateral
Fund.
4. $54,000,000 from Climate change action plan programs.
5. $5,500,000 from Office of Enforcement and Compliance
Assurance programs. No reduction is to be applied to compliance
assistance activities.
6. $1,734,000 from the Office of International Activities
global and regulatory environmental risk reduction program.
7. $10,000,000 from the new environmental monitoring for
public access and community tracking program.
8. $10,107,000 from specific reinvention programs.
9. $3,900,000 from the new Urban Livability program.
10. $10,000,000 from the increase requested for
sustainable development challenge grants.
11. $2,000,000 from rental costs.
12. $55,115,900 as a general reduction.
The conferees note that full funding has been provided
for the Chesapeake Bay Program including $833,000 for
atmospheric deposition research activities.
The conferees are concerned with the Agency's perceived
inflexibility regarding the implementation of the enhanced
vehicle emissions and inspection programs in a number of
states. Despite passage of the National Highway System
Designation Act of 1995 which included language stating that,
``the Administration shall not require adoption or
implementation by a state of a test-only I/M 240 enhanced
vehicle inspection and maintenance program,'' EPA has until
very recently required that states using equipment other than
I/M 240 perform mass emission transient testing (METT) on 0.1%
of their affected vehicles, yet has only approved I/M 240
equipment to conduct the METT. It was the intent of Congress to
prohibit the mandating of I/M 240 for any purpose, whether for
emission testing or evaluation testing. Therefore, it is
expected that the Agency will resolve this issue with the
affected states and develop a non-METT test consistent with
Congressional intent. The Agency is urged to develop
alternatives which, as required by the Clean Air Act, are based
on data collected during inspection and repair of vehicles. The
alternatives also should be seamless to the customer and not
result in increased costs to the customer or service station
owner, and also not result in a direct or indirect penalty to
the state that is not using METT. In the event that the Agency
does not develop a non-METT evaluation method, the conferees
would expect to address this issue in legislation.
The conferees continue to note their serious concerns
regarding the new National Pollutant Discharge Elimination
System (NPDES) general permit recently proposed by EPA's Region
IV. This issue was raised in the House Report accompanying H.R.
2158, and it appears the Agency has done little to address the
concerns raised in that document. The conferees therefore
direct EPA's Region IV to adopt an NPDES general permit for
offshore oil and gas extraction which is substantially similar
in its terms and conditions to that adopted and used
successfully by EPA's Region VI.
The conferees are aware that recent testing conducted at
Lake Tahoe has shown abnormal amounts of volatile compounds,
including benzene, toluene, and xylene. The conferees recommend
that EPA consider conducting an analysis and produce a report
detailing the actual levels of contaminants, sources, and
recommendations to protect this resource.
The conferees urge that EPA's recently announced
stakeholder process for the section 313 program be
expeditiously undertaken and that the recommendations be
adopted prior to the filing of any reports required under the
recent expansion of the program. EPA should dedicate the
necessary resources to ensure this process can develop
materials and procedures that will simplify the reporting
burden, especially for small businesses, while also improving
the ability to communicate information to the public.
The conferees direct the EPA Administrator to consider
for funding the NUI proposal for a large-scale demonstration
pilot project in correlation with the dredging contamination
technology effort currently underway at Brookhaven National
Laboratory.
Office of Inspector General
Appropriates $28,501,000 for the office of inspector
general as proposed by the House instead of $28,500,000 as
proposed by the Senate.
buildings and facilities
Appropriates $109,420,000 for buildings and facilities
instead of $182,120,000 as proposed by the House and
$19,420,000 as proposed by the Senate.
For the new, consolidated research facility at Research
Triangle Park, North Carolina, the conferees have agreed to an
additional funding component for fiscal year 1998 of
$90,000,000. The Agency has indicated this level of funding is
sufficient to continue ongoing planning and construction as
scheduled throughout the fiscal year. The conferees have also
included bill language which raises the authorized construction
cost ceiling for this project to $272,700,000. This level of
authorization is necessary to permit the construction of the
building--including the high bay facility, the computer center,
and the child care center--as originally designed. Prior to the
expenditure of funds relative to these three facilities,
however, the Agency is directed to provide a cost/benefit
analysis which justifies their inclusion as proposed in the
original construction plan.
hazardous substance superfund
Appropriates $2,150,000,000 for hazardous substance
superfund instead of $1,500,699,000 as proposed by the House
and $1,400,000,000 as proposed by the Senate.
The conferees have agreed to the following fiscal year
1998 program levels:
$990,500,000 for the superfund response/cleanup program,
including the full budget request for the Brownfields program.
$174,000,000 for the enforcement program.
$129,000,000 for management and support, including
$11,641,000 for transfer to the Office of Inspector General.
$35,000,000 for research and development activities, to
be transferred to the Science and Technology account.
$58,000,000 for the National Institute of Environmental
Health Sciences, including $23,000,000 for worker training and
$35,000,000 for research activities.
$74,000,000 for the Agency for Toxic Substances and
Disease Registry. The amount provided is intended to enable
ATSDR to reduce significantly the backlog of more than 200
hazardous waste sites requiring public health activities and to
conduct a child health initiative. Within 30 days of enactment
of this Act, ATSDR is to provide a detailed operating plan to
the Committees on Appropriations. In addition, ATSDR
periodically is to keep the Committees apprised of progress in
reducing the backlog, efforts related to the child health
initiative, and proposed new activities. Within the funds
provided herein, $4,000,000 is for minority health professions,
$2,500,000 is for continuation of a health effects study on the
consumption of Great Lakes fish, and $2,000,000 is for
continued work on the Toms River, New Jersey cancer evaluation
and research project.
$39,500,000 for interagency activities.
The conferees note that $100,000,000 of the funds
provided herein shall not become available for obligation until
September 1, 1998. Further, $650,000,000 of the funds provided
herein shall not become available until October 1, 1998, and
shall be available for obligation only if specific
reauthorization of the Superfund program occurs by May 15,
1998.
While the conferees have provided the full budget request
for the Brownfields program, concerns remain regarding the
Agency's legal authority to utilize Superfund dollars to
establish revolving funds which in turn would be used to clean
up sites which are neither emergency in nature nor eligible for
NPL listing. Bill language has therefore been included which
prohibits the use of funds under this heading for revolving
loan funds unless specifically authorized in subsequent
legislation.
Again this year, the conferees direct that all fiscal
year 1997 carryover funds be used for additional response
action/cleanup efforts. In addition, in order to enhance the
fiscal year 1998 response action/cleanup program, the conferees
direct the Agency to move expeditiously to deobligate and
recapture as much unspent prior-year cleanup funds as possible.
The conferees reiterate the position of the House that
strongly encourages the Agency to implement a fixed-price, at-
risk contracting proposal for the clean-up of the Carolina
Transformer Site in North Carolina.
With regard to the Agriculture Street Landfill Superfund
site in New Orleans, the conferees are aware of the potential
health risks associated with remediating the undeveloped
property without permanent or temporary relocation of the
nearby residents, or some other responsible mitigation effort.
The conferees thus strongly urge the Agency to stay the
remediation of the site, pursuant to its Record of Decision of
September 2, 1997, until this matter can be satisfactorily
resolved.
The conferees also reiterate the concern as expressed in
the House Report accompanying H.R. 2158 regarding the EPA's
response to certain ``emergencies.'' Questions of both legal
authority and the excessive expenditure of funds outside the
scope of the Agency's operating plan remain very troubling. The
conferees therefore direct the EPA to notify the Committees on
Appropriations within 72 hours of theAgency's undertaking an
emergency response at non-NPL sites that is expected to exceed
$5,000,000 in total cost.
Last year, the conferees included language directing the
EPA Administrator to begin construction immediately at the Pepe
Field Superfund site in Boonton, New Jersey. Due to a change in
the remedy by the EPA, the construction has again been delayed.
The conferees are concerned with this delay and direct the
Administrator to begin construction immediately.
leaking underground storage tank program
Appropriates $65,000,000 for the leaking underground
storage tank program as proposed by the Senate instead of
$60,000,000 as proposed by the House. Language is also included
which provides a maximum of $7,500,000 for the program's
administrative costs as proposed by the Senate instead of
$9,100,000 as proposed by the House.
The conferees direct that not less than 85 percent of the
funds provided be allocated to the States.
oil spill response
Appropriates $15,000,000 for oil spill response as
proposed by the House and the Senate. Bill language is also
included which provides a maximum of $9,000,000 for the
program's administrative costs as proposed by the House instead
of $8,500,000 as proposed by the Senate.
state and tribal assistance grants
Appropriates $3,213,125,000 for state and tribal
assistance grants instead of $3,026,182,000 as proposed by the
House and $3,047,000,000 as proposed by the Senate.
Bill language provides the following program levels:
$1,350,000,000 for Clean Water Capitalization Grants.
$725,000,000 for Safe Drinking Water Capitalization
Grants. The conferees note that amounts provided for drinking
water state revolving funds are available for national set-
asides outlined in section 1452; however, health effects
research is funded in the Science and Technology account as
proposed by the Administration.
$75,000,000 for the United States-Mexico Border Program.
$50,000,000 for colonias in Texas, including bill
language which provides a 20% match for these funds. The match
requirement may be fulfilled through the commitment of state
funds for either loans or grants for construction of wastewater
or water systems serving colonias and the match may also
consist of payment on bond interest associated with loans or
grants for construction of wastewater and water systems. With
respect to prior appropriated funds for colonias, the match
requirement may be fulfilled through the commitment of state
funds for either loans or grants for construction of wastewater
systems serving colonias and may also consist of payment on
bond interest associated with loans or grants for construction
of wastewater systems.
$15,000,000 for Alaska rural and Native Villages, to be
cost-shared.
$745,000,000 for state and tribal categorical grants,
including increases above the budget request of $24,743,000 for
particulate matter monitoring and data collection and
$5,000,000 for section 319 non-point source pollution grants.
Language is included to direct that the PM monitoring and data
collection grants be issued pursuant to section 103 of the
Clean Air Act so as not to require a state, tribal, or local
cost share. The conferees agree that performance partnership
grants and statutorily authorized transfers between state
revolving funds are both exempt from the Congressional
reprogramming limitations. Finally, language is included which
clarifies that, as provided in the authorizing statutes for the
various program grants, eligible recipients have included since
fiscal year 1996 interstate agencies, tribal consortia, and air
pollution control agencies, as well as States and tribes.
$253,125,000 for grants for construction of ``special
needs'' wastewater, water treatment and drinking water
facilities, and for groundwater protection infrastructure.
Bill language has been included which: (1) authorizes
cross collateralization of clean water and safe drinking water
state revolving funds as security for bond issues; (2)
authorizes the Administrator to make grants to federally
recognized Indian governments for the development of multi-
media environmental programs; (3) makes it possible for EPA to
use funds under this account for specific programs and purposes
in state and tribal areas when such state or tribe does not
have an acceptable program in place; and (4) authorizes the
Administrator to make a grant of deobligated FWPCA section 205
funds for wastewater treatment facilities in Monroe County,
Florida.
Finally, bill language has been included which provides
for an 80/20 cost share for the use of capitalization funds for
the District of Columbia. The provision, which is intended to
permit the District to move aggressively in making necessary
repairs and upgrades in its wastewater treatment facilities,
will sunset in two years.
The conferees agree that the special needs funds are
provided as follows:
1. $50,000,000 for Boston Harbor wastewater needs.
2. $3,000,000 for continued wastewater needs in Bristol
County, Massachusetts.
3. $8,000,000 for New Orleans wastewater needs.
4. $5,000,000 to implement drinking water facility
improvements under Title IV and to implement combined sewer
overflow (CSO) projects in Richmond ($2,500,000) and Lynchburg
($2,500,000), Virginia.
5. $14,000,000 for continuation of the Rouge River
National Wet Weather Demonstration project.
6. $5,000,000 for wastewater and water system needs of
the Omnalinda Water Association ($500,000); the Jenner Township
Sewer Authority ($2,600,000), and the North Fayette County
Municipal Authority ($1,900,000), Pennsylvania.
7. $13,000,000 for the Millcreek Tube Sewer upgrade/
combined sewer overflow project.
8. $3,000,000 for phase one of Sacramento's wastewater
treatment facility upgrade.
9. $10,000,000 for planning and implementation of a storm
water abatement system in the Doan Brook Watershed Area, Ohio.
10. $6,900,000 for wastewater infrastructure needs for
Kenner ($5,000,000) and Baton Rouge ($1,900,000), Louisiana.
11. $2,250,000 for Ogden, Utah's sanitary storm sewer and
drinking water distribution systems.
12. $2,500,000 to assist the Bad Axe, Michigan water
crisis.
13. $10,000,000 to complete the wastewater improvement
program at the Clear Lake Sanitary District, Iowa.
14. $7,000,000 for combined sewer overflow requirements
in Lycoming County ($4,000,000) and for wastewater needs of the
Pocono/Jackson Township Joint Authority ($1,500,000) and
Smithfield Township in Monroe County ($1,500,000),
Pennsylvania.
15. $1,200,000 for phase two of the Geysers Effluent
Project in Northern California.
16. $14,000,000 for continued clean water improvements of
Onondaga Lake.
17. $5,000,000 for wastewater and drinking water system
needs in Clearfield, Mifflin, Snyder and Fulton Counties
($1,250,000); Decatur Township ($150,000); Lawrenceville
Township ($300,000); Lyleville ($300,000); Lewistown
($1,000,000); McVeytown ($500,000); Adams Township and Port
Trevorton ($500,000); Middleburg ($500,000); and McConnellsburg
($500,000), Pennsylvania.
18. $10,000,000 for water supply and wastewater needs for
the City of Burnside ($2,000,000); the City of Williamsburg
($3,000,000); the City of Wayland ($1,500,000); the City of
Hyden ($1,500,000); and the Morgan County Water District
($2,000,000), Kentucky.
19. $1,275,000 for wastewater needs for East Mesa
($700,000), West Mesa ($500,000), and Lordsburg ($75,000), New
Mexico.
20. $4,000,000 for an alternative water supply system in
Jackson County, Mississippi.
21. $2,000,000 for wastewater facilities and improvements
in Essex County, Massachusetts.
22. $2,000,000 for the Milwaukee Metropolitan Sewerage
District urban watershed restoration project (Lincoln Creek).
23. $7,150,000 for export pipeline replacement to protect
Lake Tahoe.
24. $7,000,000 for wastewater facility and sanitary
system improvements in Burlington, Iowa.
25. $7,000,000 for the Ashley Valley, Utah sewer
management board for wastewater improvements.
26. $5,000,000 for water systems improvements in the
Virgin Valley Water District, Nevada.
27. $2,000,000 for the town of Epping, New Hampshire, for
wastewater treatment upgrades.
28. $4,300,000 for wastewater improvements in Queen
Anne's County, Maryland, ($2,300,000); and biological nutrient
removal of sewage on the Pocomoke River, Maryland ($2,000,000).
29. $6,000,000 for water/wastewater improvements in the
Moreland/Riverside area of Bingham County ($3,000,000); the
City of Rupert ($2,000,000); and the Rosewell and Homedale
areas ($1,000,000) of Idaho.
30. $5,000,000 for Missoula, Montana sewer system
improvements.
31. $3,000,000 for the Milton, Vermont wastewater
treatment plant project.
32. $5,000,000 for sewage infrastructure improvements for
Connellsville and Bullskin Townships in Fayette, Pennsylvania
($2,500,000) and Fallowfield Township, Pennsylvania
($2,500,000).
33. $6,300,000 for wastewater treatment improvements in
Pulaski County ($5,000,000) and Kingdom City ($1,300.000),
Missouri.
34. $8,000,000 for the Upper Savannah Council of
Governments for wastewater facility improvements for the
Savannah Valley regional sewer project in Abbeville, McCormick,
and Edgefield Counties, South Carolina.
35. $3,300,000 for water system improvements in Jackson
County ($800,000), Washington County ($2,000,000), and Cleburne
County ($500,000), Alabama.
36. $1,800,000 for water treatment improvements in the
Joshua Basin Water District.
37. $100,000 for wastewater infrastructure improvements
in Ascension Parish, Louisiana.
38. $50,000 for water and sewer improvements in the City
of Kinloch, Missouri.
39. $3,000,000 for alternative source projects in the St.
Johns River, South Florida, and Southwest Florida Water
Management Districts.
The conferees recognize the acute need for additional
water treatment capacity in San Diego County, California. While
limited funds prevent the conferees from providing fiscal year
1998 funds for the development of the Olivenhain Water
Treatment Project, the conferees recognize the project's
potential to demonstrate the environmental and health benefits
associated with microfiltration technology. Also, with regard
to San Diego's South Bay Water Reclamation Facility, the
conferees are aware of the City's application for grant
assistance through the United States-Mexico border projects
program and that EPA and the NADBank have not rendered final
judgment on the application. The conferees urge the Agency and
the NADBank to review carefully this matter so as to provide
any appropriate support. Should the application of the City be
declined, the Agency is to provide a report to the Committees
on Appropriations within 30 days of such action which explains
in detail the decision of the Agencies.
Finally, the conferees note their support for
construction of the Jonathan Rogers plant in El Paso, Texas and
encourage the Agency to provide an appropriate amount from the
border infrastructure fund to support the federal share of this
project.
EXECUTIVE OFFICE OF THE PRESIDENT
Council on Environmental Quality and Office of Environmental Quality
Appropriates $2,500,000 for the Council on Environmental
Quality and Office of Environmental Quality instead of
$2,506,000 as proposed by the House and $2,436,000 as proposed
by the Senate.
The conferees have agreed to bill language proposed by
the House which stipulates that, notwithstanding the provisions
of the National Environmental Policy Act (NEPA), there will for
fiscal year 1998 be just one member of the Council on
Environmental Quality (instead of three), and that individual
shall act as chairman.
The conferees have also agreed to language proposed by
the Senate which prohibits CEQ from using funds other than
those appropriated directly to CEQ under this heading. This
language is intended to prevent CEQ from augmenting its staff
through the use of employees detailed from other federal
agencies. It is not intended to prevent CEQ from conducting
activities authorized under NEPA, including the coordination of
activities of federal agencies relative to environmental policy
issues. Further, the language is not intended to bar the
formation of interagency task forces or prevent requests for
information from other federal agencies.
unanticipated needs
Appropriates $1,000,000 for unanticipated needs within
the Executive Office of the President. The conferees note that
this funding was included in this legislation at the request of
the Administration because it was excluded from another
appropriation measure. The conferees do not anticipate funding
this program in this Act in subsequent fiscal years.
FEDERAL DEPOSIT INSURANCE CORPORATION
Office of Inspector General
Appropriates $34,365,000 for the Office of Inspector
General as proposed by the House instead of $34,265,000 as
proposed by the Senate. Funds for this account are derived from
the Bank Insurance Fund, the Savings and Loan Association
Insurance Fund, and the FSLIC Resolution Fund, and are
therefore not reflected in either the budget authority or
budget outlay totals.
FEDERAL EMERGENCY MANAGEMENT AGENCY
disaster relief
Appropriates $320,000,000 for disaster relief as proposed
by the Senate instead of $500,000,000 as proposed by the House.
The conferees are supportive of FEMA's initiative to
establish a Federal Coordinating Officer cadre staffed by full-
time employees and funded by the Disaster Relief Fund to
support ongoing field operations. The Agency is expected to
keep the Committees on Appropriations informed of its progress
as it proceeds with its plans to enroll the 25 member cadre. If
the Agency moves forward on this initiative, the fiscal year
1998 operating plan should reflect this activity.
While the conferees have not included language proposed
by the Senate prohibiting the use of disaster relief funds in
certain instances, the conferees support efforts to rein in
disaster relief expenditures, which have grown exorbitantly in
recent years. The conferees acknowledge that under current law,
disaster relief payments have been made for such lower priority
activities as refurbishing golf courses in certain high income
communities. To offset the cost of growing disaster relief
requirements, a series of supplemental appropriations bills in
the past few years have included large rescissions of funds
from other agencies' programs, principally low income housing.
Earlier this year, FEMA proposed amendments to the Stafford Act
which represent a modest first step in curbing disaster relief
expenditures. The conferees strongly urge the committees of
jurisdiction to take swift action to consider the proposed
Stafford Act amendments, including holding hearings at the
earliest possible time.
emergency management planning and assistance
Appropriates $243,546,000 for emergency management
planning and assistance instead of $261,646,000 as proposed by
the House and $207,146,000 as proposed by the Senate. Bill
language is included which provides $30,000,000 for pre-
disaster mitigation activities instead of $50,000,000 as
proposed by the House and $5,000,000 as proposed by the Senate
for pre-disaster mitigation grants to state and local
governments.
The conferees have provided the following increases to
the budget request:
$500,000 for the completion of a comprehensive analysis
and plan of all evacuation alternatives for the New Orleans
metropolitan area.
$5,000,000 for FEMA to continue the replacement and
upgrade of emergency equipment and vehicles. The conferees
expect to be informed in the operating plan as to how these
funds are expected to be spent.
$3,000,000 for State and local assistance through
comprehensive cooperative agreements.
$2,900,000 for the Dam Safety program, including
$1,000,000 for research in dam safety; $1,000,000 for incentive
grants to States to upgrade their dam safety program; $500,000
for training programs for State dam safety inspectors; and
$400,000 for administration of the program.
The conferees have included bill language providing for a
grant of $1,500,000 to resolve issues under the Uniform
Relocation Assistance and Real Property Acquisition Policies
Act of 1970, Public Law 91-646, involving the City of Jackson,
Mississippi. These issues were identified in a January 30, 1989
report of the United States Department of Housing and Urban
Development.
Acknowledging the importance of pre-disaster mitigation
in reducing the loss of human life, the costs and disruption
caused by severe property damage, and the ever-growing cost to
all taxpayers of government-backed disaster relief efforts, the
conferees have provided $30,000,000 for program planning and
implementation of pre-disaster mitigation efforts. The
conferees acknowledge the potential value of various
alternatives that have been suggested to achieve pre-disaster
mitigation, including grants to state and local governments to
conduct pilot demonstration projects as proposed by the Agency
in their fiscal year 1998 budget submission, the HomeSaver
Project proposed by The Partnership for Natural Disaster
Reduction, the rapid deployment-technologies concept proposed
by the Centers for Protection Against Natural Disasters
(CPAND), and other research and applied engineering activities,
particularly those jointly funded by the public and private
sectors.
The conferees agree that up to $5,000,000 of the amount
provided for pre-disaster mitigation is available immediately
to fund up to seven pilot projects approved by the Director of
FEMA. Prior to the expenditure of the remaining funds for any
specific pre-disaster mitigation program or project, the
conferees direct that the appropriate level of funding be used
by the Agency to conduct a formal needs-based analysis and
cost/benefit study of all of the various mitigation
alternatives. The results of these analyses and studies, along
with any relevant information learned from the aforementioned
seven pilot projects, shall be incorporated into a
comprehensive, long-term National Pre-disaster Mitigation Plan.
The plan should be developed, independently peer-reviewed, and
submitted to the Committees on Appropriations not later than
March 31, 1998. FEMA is directed to involve in this planning
effort participants which shall include, but are not limited
to, representatives of FEMA and other federal agencies, state
and local governments, industry, universities, professional
societies, the National Academy of Sciences, The Partnership
for Natural Disaster Reduction, and CPAND. The conferees intend
that none of the remaining funds provided herein be obligated
until the plan has been completed and submitted as outlined
above. The conferees note that this approach is intended to be
the foundation for providing the best and most cost-effective
solution to reduce the tremendous human and financial costs
associated with natural disasters.
The conferees believe that attention is warranted to
minimize losses to existing steel frame structures during and
following major earthquakes. Although many steel frame
structures were designed and constructed in accordance with
building codes in effect at the time of construction,
experience in the 1994 Northridge, California earthquake and
the 1995 Kobe, Japan earthquake suggests a heightened
vulnerability of these structures. Accordingly, the conferees
urge FEMA to consider a pilot pre-disaster mitigation project
that would incorporate the greater use of new steel frame
manufacturing and retrofitting technologies as a method to
reduce disaster response costs.
The conferees are aware of proposals by the International
Hurricane Center at Florida International University to apply
advanced high-accuracy satellite laser altimeter surveying
techniques to coastal and flood plain modeling and post natural
disaster damage assessments. FEMA is urged to consider funding
such proposals from discretionary funds to improve its
modeling, mapping, damage assessment, and pre-disaster
mitigation efforts.
The conferees understand that many scientists studying
climate change have predicted a large-scale El Nino phenomenon
this year. Many such experts who have monitored this phenomenon
for decades project that this El Nino may cause extreme weather
events far worse than others associated with El Nino events of
past years. While it is impossible to prevent these extreme
weather events, the conferees recognize that recently developed
El Nino prediction capabilities can be utilized to mitigate
loss of life, human dislocation, and property damages which may
occur. The conferees encourage FEMA to work with other federal
agencies, including NOAA, NASA, USDA, the Army Corps of
Engineers, and the Department of the Interior to utilize El
Nino prediction data for disaster planning and mitigation
during fiscal year 1998 and explore opportunities to expand the
use of this new predictive capability for long-term mitigation
planning.
The conferees note that Pointe Coupee Parish, Louisiana
faces the potential threat of multiple disasters, which include
the fixed site storage and transportation of volatile
chemicals, a nuclear power generating facility, and such
weather related threats as hurricanes, floods, and tornadoes.
Disaster mitigation and response requires rapid response by
civil agencies, but this is not possible without a
communications system with the capability to coordinate
immediately the activities of all disaster response teams. The
conferees urge FEMA to work closely with the Parish and provide
appropriate support for the installation and testing of a
prototype communications system. Disaster response officials
from Pointe Coupee Parish are expected to work closely with
FEMA to make available the results of the demonstration project
to other local governments and law enforcement agencies.
NATIONAL FLOOD INSURANCE FUND
Bill language which extends the borrowing authority for
the flood insurance program of $1,500,000,000 for fiscal year
1998 as proposed by the House has been included.
The conferees have also included new bill language which
authorizes the National Flood Insurance Program for fiscal year
1998. Without this authorization, new flood insurance policies
could not be written throughout the fiscal year.
Finally, language which permits the continuation of flood
mapping activities of FEMA has been included.
National Aeronautics and Space Administration
The conferees note that the United States space launch
industry has identified underutilized infrastructure at the
Stennis Space Center for potential use in launch vehicle
development activities. The conferees consider such proposed
use of this infrastructure to be compatible with the Center's
propulsion test programs and consistent with other efforts to
optimize taxpayer investments while fostering U.S.
competitiveness and commercial use of space. The conferees urge
NASA to pursue an appropriate method for making the
underutilized Stennis infrastructure available under suitable
terms and conditions, if so requested by industry, and to
notify the Committees on Appropriations of the House and Senate
if existing NASA authority is insufficient for this purpose.
HUMAN SPACE FLIGHT
Appropriates $5,506,500,000 for human space flight
instead of $5,426,500,000 as proposed by the House and
$5,326,500,000 as proposed by the Senate. Within this amount,
the appropriation for space shuttle is $2,927,800,000, the
appropriation for payload and utilization is $227,400,000, and
the appropriation for space station and related activities is
$2,351,300,000.
The conferees agree that the agency may provide
$1,000,000 for the Neutral Buoyancy Simulator program, as was
provided in the Senate bill. In addition, before providing
funding for the program, the conferees request that NASA report
on the potential viability of commercialization of the Neutral
Buoyancy Simulator.
The conferees have agreed to an appropriation of
$2,351,300,000 for Space Station activities in fiscal year
1998, including $80,000,000 from funds in the mission support
account identified by the agency ($25,000,000 from TDRS,
$20,000,000 from environmental programs, $30,000,000 from
Research Operations Support, and $5,000,000 from facilities),
$100,000,000 in addition to the agency's request, and
$50,000,000 by reallocation from within the amounts requested
in the Human Space Flight account.
Of the amount provided for space station activities, no
more than $1,500,000,000 shall be available before March 31,
1998, as stated in the bill.
The conferees are troubled by the problems with the space
station which include projected development cost overruns of
$600,000,000-$800,000,000, the inability to hold critical
hardware delivery and launch dates despite receiving the post
re-design funding profile requested by the Administration, and
failure to reduce the contractor team's development workforce
in keeping with budget projections submitted with the 1997 and
1998 budgets.
Therefore, the conferees have agreed to provide only part
of the funding and none of the transfer authority that NASA has
identified as necessary for the program in fiscal year 1998,
$230,000,000 above the Administration's budget request, rather
than $430,000,000. In addition, the conferees have withheld
about a third of the total space station funds, pending receipt
of certain documents and information listed below. This gives
NASA and the space station contractor the opportunity to
reexamine the funding profile, schedule, content, and
efficiency of the program.
The remaining $851,300,000 will be made available after
March 31, 1998, if the Committees on Appropriations receive the
Administration's fiscal year 1999 budget for NASA, including
the annual run-out budget for the Station program through
assembly complete, and also outyear projections for other NASA
enterprises that retains funding levels for fiscal year 1999-
2002 at levels no less than those assumed in the fiscal year
1998 budget. The conferees expect the outyear projections to
reflect a balance among NASA's programs.
In addition to the requirement about the fiscal year 1999
NASA budget and bill language limiting the use of a portion of
space station funds until March 31, 1998, the remaining
$851,300,000 remains fenced until and unless NASA provides the
following items to the Committees on Appropriations of the
House and Senate, and the Committees subsequently approve the
release of these funds:
1. A detailed plan, agreed jointly to by NASA and
the prime contractor, for the contractor's monthly
staffing levels through completion of development, and
evidence that the contractor has held to the agreed-
upon destaffing plan through the first four months of
fiscal year 1998;
2. A detailed schedule, agreed jointly to by NASA
and the prime contractor, for delivery of hardware, and
NASA's plans for launching the hardware;
3. A detailed report on the status of negotiations
between NASA and the prime contractor for changes to
the contract for sustaining engineering and spares,
with the expectation that NASA adhere to the self-
imposed annual cap of $1,300,000,000 for operations
after construction is complete; and
4. A detailed analysis by a qualified independent
third party of the cost and schedule projections
required in 1), 2), and 3) above, either verifying
NASA's data or explaining reasons for lack of
verification.
Given how severe the program's budget problems are, the
conferees are also mindful that future NASA budgets must be
funded within discretionary spending caps in the five-year
balanced budget agreement, meaning that budget outlays in
fiscal year 1999 for all discretionary spending will grow by
just one percent. As a result, the conferees are concerned that
future NASA budgets not force reductions in the current outyear
projections for space science, earth science, aeronautics, and
advanced space transportation because of the need to
accommodate overruns in the space station budget.
SCIENCE AERONAUTICS AND TECHNOLOGY
Appropriates $5,690,000,000 for science, aeronautics and
technology as proposed by the House instead of $5,642,000,000
as proposed by the Senate.
The conference agreement reflects the following changes
from the budget request:
1. A general reduction of $66,000,000.
2. An increase of $1,000,000 for Multiple Sclerosis
cooling therapy research.
3. An increase of $5,500,000 for the space radiation
health program.
4. An increase of $1,000,000 for eye tracking technology
miniaturization.
5. An increase of $10,000,000 for additional optical
astronomy test beds as proposed in the Senate report (105-53).
This amount represents the total NASA contribution to the
capital costs for these efforts and operating costs are to be
covered by the host activity.
6. An increase of $1,000,000 for the United States/Mexico
Foundation for Science.
7. An increase of $5,000,000 for the lightning mapper
sensor.
8. An increase of $450,000 for use of satellite imagery
in urban planning and agricultural applications.
9. An increase of $15,000,000 for funding up to five
consortia to develop regional application with the use of EOS
data.
10. An increase of $5,800,000 for Commercial Technology
Programs.
11. An increase of $6,000,000 for telecommunications
technology infrastructure for K-12 schools.
12. An increase of $1,900,000 for the National Technology
Transfer Center.
13. An increase of $1,750,000 for the Midwest Regional
Technology Transfer Center.
14. An increase of $5,000,000 for a NASA business
incubator program which is designed to foster partnerships
between educational institutions and small high-technology
businesses. The program is to be a nation-wide competitive
program with successful applicants demonstrating at least 50
percent of total funds will be derived from non-federal
sources.
15. An increase of $1,500,000 to restructure the Software
Optimization and Reuse Technology program. The conferees are
concerned that this program has not delivered expected results;
the conferees expect NASA to restructure its current funding
mechanism to allow for greater oversight and improved results.
The conferees expect this funding to be expended over a two
year period.
16. The conferees agree to provide an additional
$20,000,000 only for post-cycle I activity on the Low Cost
Booster Technology Demonstration. NASA is to proceed with cycle
I awards, but no funds may be used for market analysis or
development of business plans. In addition, the conferees agree
that prior to any contract awards beyond cycle I, NASA, with
the Marshall Space Flight Center as the lead center, is to
convene a conference of all interested parties to determine the
best program structure to achieve the goal of a space launch
platform for a 150 kg payload to attain a 200 nautical mile,
sun-synchronous orbit, in the range of less than $2,000,000 in
recurring cost. Furthermore, the conferees agree that said
conference shall conclude prior to the end of cycle I and that
recommended changes to the program that materialize shall be
presented to Congress prior to implementation by NASA.
17. An increase of $1,500,000 for MSE-Technology
Applications, Western Environmental Technology Office.
18. A decrease of $1,000,000 for a joint program with the
Department of Defense.
19. An increase of $3,300,000 for replication of the
SEMAA program.
20. An increase of $2,500,000 for a science learning
center in Kenai, Alaska.
21. An increase of $1,000,000 for the Discover Science
Center, Santa Ana, California.
22. An increase of $9,000,000 for expansion of the
Partnership Awards program.
23. An increase of $2,000,000 for Daily Living Science
Center in Kenner, Louisiana.
24. An increase of $5,800,000 for the Space Grant College
and Fellowship program.
25. An increase of $1,500,000 for the Pennsylvania
Educational Telecommunications Exchange Network.
26. An increase of $1,500,000 for academic and
infrastructure needs at the Apple Valley, California science
and technology center.
27. An increase of $3,000,000 for Solar-B.
28. An increase of $3,000,000 for solar stereo.
The conferees also agree that NASA should continue with
its efforts to purchase Earth science data from private
industry to the extent it is appropriate.
The conferees concur with the intent of the language in
Senate report 105-53 with regard to the Earth Observing System
Data Information System (EOSDIS). The conferees wish to make
clear, however, that NASA should make any evaluation of the
future of the ECS based not only upon delivery, but also
successful performance demonstrated in the initial post-launch
operational capabilities of EOSDIS as it relates to both the
AM-1 and Landsat-7 spacecraft. Further, the conferees believe
that NASA should proceed carefully with the federation of
mission to planet earth, but ensure the earth science community
should not in any way be prevented from participating in this
endeavor. Therefore, issuance of any conflict of interest
guidelines should be construed narrowly to apply only to
immediate ESSAC members, and pertain simply to future
eligibility for any cooperative agreement notices related
exclusively to federated management funding, which is to be
capped in fiscal year 1998 at $10,000,000.
The conferees concur with the direction of the Senate to
promote competition in the award of advanced technology
development (ATD) funds. To achieve this end, commencing with
fiscal year 1998 and continuing in each year thereafter, NASA
should consolidate all space science ATD activities into an
easily accessible consolidated budget line item and award not
less than 75 percent of these funds through broadly distributed
announcements of opportunity that solicit proposals from all
categories of organizations, including educational
institutions, industry, nonprofit institutions, NASA Centers,
the Jet Propulsion Laboratory, and other Government agencies,
and that allow partnerships among any combination of these
entities, with evaluation, prioritization, and recommendations
made by external peer review panels, consistent with the
recommendations contained in the 1995 National Academy of
Sciences report on managing the space sciences. In awarding ATD
funds in this manner, the conferees wish to make clear that
final selection of all proposals rests with NASA officials
consistent with Office of Procurement Policy guidelines; and
that setting technology requirements that are the foundation of
the AO's rests with NASA program managers, consistent with
guidance provided by advisory bodies of the at-large science
community. In this fashion, NASA's technology investments will
be managed in a manner parallel to that traditionally employed
in implementing the agency's science program.
mission support
Appropriates $2,433,200,000 for mission support instead
of $2,513,200,000 as proposed by the House and $2,503,200,000
as proposed by the Senate. The conference agreement includes
transfer of $80,000,000 from this appropriation to the Human
Space Flight appropriation for the space station effort. The
specific reductions to this appropriation are delineated in an
earlier section of this statement. In addition, the conferees
agree that $5,000,000 is to be provided for facilities
enhancements at the Stennis Space Center.
The conferees concur with the direction of the Senate
with respect to the NASA Wallops flight facility. The conferees
wish to make clear that none of the funds appropriated or
otherwise made available to the National Aeronautics and Space
Administration by this Act, or any other Act enacted before the
date of enactment of this Act, may be used by the Administrator
of the National Aeronautics and Space Administration to
relocate aircraft of the National Aeronautics and Space
Administration based east of the Mississippi River to the
Dryden Flight Research Center in California.
administrative provisions
The conferees have included an administrative provision
as proposed by the Senate which directs NASA to use $400,000
for a study by the National Research Council which evaluates
the engineering challenges posed by extravehicular activity
requirements of space station construction/assembly.
The conferees have not included the administrative
provision proposed by the House and stricken by the Senate
which would have provided $150,000,000 of transfer authority.
National Credit Union Administration
central liquidity facility
Appropriates $1,000,000 for the National Credit Union
Administration for the Community Development Revolving Loan
Program for credit unions as authorized by Public Law 103-325.
National Science Foundation
research and related activities
Appropriates $2,545,700,000 for research and related
activities, instead of $2,537,526,000 as proposed by the House
and $2,524,700,000 as proposed by the Senate.
The conferees are in receipt of the Foundation's
explanation of the programmatic areas of Knowledge and
Distributed Intelligence in the Information Age and Life and
Earth's Environment. The Foundation has not yet provided
appropriate milestones and guideposts, to be accomplished in
fiscal year 1998, and against which the agency can be measured
in determining funding for fiscal year 1999. The conferees
expect to receive such milestones and guideposts before the
Foundation obligates any further funding for these programmatic
areas.
Through a cooperative agreement, the National Science
Foundation has authorized the collection of fees for the
registration of internet domain names. Under the terms of that
agreement, a fund for the intellectual infrastructure of the
internet has been established. For purposes of justifying the
Foundation's requests for appropriations, the Foundation has
included networking activities, such as the domain name
registration activity, within its research facilities
portfolio. The conferees concur that these activities should be
considered research facilities.
Accordingly, the conferees direct the Foundation to
credit up to $23,000,000 of the funds collected in the
``intellectual infrastructure'' fund to the Foundation's
Research and Related Activities account for Next Generation
Internet activities, pursuant to the authority to credit
``receipts for scientific support services and material
furnished by National Science Foundation supported research
facilities.''
The conferees are in agreement with the report of the
Senate regarding participation by EPSCoR states in development
of the Next Generation Internet. The conferees expect to
receive the report by March 31, 1998.
At its March 1997 meeting, the National Science Board
evaluated proposals for Partnerships with Advanced
Computational Infrastructure (PACI). At that meeting, two
partnership proposals from two existing supercomputing centers
were not selected. The Board provided for the phase-out over a
period of up to two years of the two centers not selected. This
phase-out was designed to recognize the substantial investment
made by the United States in these two centers and to keep
their resources available to the user community during a period
of transition to the new partnership structure.
The conferees are concerned that funding for the orderly
phase-out of the two existing supercomputing centers, and the
seamless transition of the user community to the new PACI
program, be fully and fairly achieved in an expeditious and
truly cooperative manner. Rather than providing additional
funds for that purpose at this time, the conferees direct the
Foundation to provide a report to the Committees on
Appropriations of the House and Senate which details both the
progress of the PACI program to date, and its further plans for
the orderly phase-out and seamless transition of the
Foundation's supercomputing program. This report should be
submitted with the fiscal year 1999 budget and should focus
particularly on how ``high-end'' users of the IBM SP
supercomputing system will be fully serviced by the new
partnerships, or, if necessary, by the new partnerships in
close collaboration with the centers being phased-down.
The conferees have agreed to provide $40,000,000 in
addition to the budget request for a competitive, peer-reviewed
plant genome research program. The conferees are in agreement
that the program established by the National Science Foundation
should be accomplished after consultation with the National
Science and Technology Council's Interagency Working Group on
plant genome research.
The conferees have also agreed to provide $1,000,000 for
the United States/Mexico Foundation for Science as proposed by
the House.
Finally, the conferees encourage the National Science
Foundation to study how it would establish and operate a
National Institute for the Environment.
major research equipment
Appropriates $109,000,000 for major research equipment
instead of $175,000,000 as proposed by the House and
$85,000,000 as proposed by the Senate.
The conferees agree to provide $4,000,000 for technical
enhancements to the Gemini telescope project and $70,000,000
for upgrades to Antarctic facilities. The amount provided for
Antarctic facilities includes $35,000,000 to be made available
immediately and the remaining $35,000,000 to be available on
September 30, 1998. The conferees have not provided the budget
request of $25,000,000 for the Polar Cap Observatory. The
conferees direct the National Science Foundation to provide the
Committees on Appropriations of the House and Senate an
analysis of alternative sites for location of the observatory
and a report on the scientific justification for the project.
Education and Human Resources
Appropriates $632,500,000 for education and human
resources, as proposed by the House instead of $625,500,000 as
proposed by the Senate.
The conferees agree to provide $2,000,000 for Advanced
Technology Education and $5,000,000 for an initiative to
improve the production of science and engineering doctorates
drawn from under-represented groups as proposed in the House
report. In addition, the conferees agree that the Foundation
should provide $6,000,000 for an undergraduate reform
initiative to increase the numbers of under-represented
populations in mathematics, engineering and the sciences as
proposed in the Senate report.
salaries and expenses
Appropriates $136,950,000 for salaries and expenses, the
same as provided by the House and the Senate. The conferees
agree with the direction contained in the Senate report with
regard to reporting total cost of administration and
management.
Neighborhood Reinvestment Corporation
payment to the neighborhood
reinvestment corporation
Appropriates $60,000,000 for the Neighborhood
Reinvestment Corporation instead of $70,000,000 as proposed by
the House and $50,000,000 as proposed by the Senate. As this is
a 20 percent increase over the fiscal year 1997 funding level,
the conferees request the Corporation to notify the Committees
on Appropriations as to how this additional funding will be
specifically utilized throughout the fiscal year.
TITLE IV--GENERAL PROVISIONS
Language as proposed by the Senate which will allow funds
made available under section 320(g) of the Federal Water
Pollution Act to be used for implementing comprehensive
conservation and management plans is included as section 420.
Bill language regarding the Office of Consumer Affairs is
included as section 421 as proposed by the Senate instead of as
section 420 as proposed by the House.
Inserts language proposed by the Senate defining
``qualified student loan'' with respect to national service
awards, modified to make the provision apply only to Alaska.
Deletes language proposed by the Senate expressing a
sense of the Senate regarding funding of veterans discretionary
programs in future years. The conferees are concerned with the
budget projections for veterans medical spending assumed in the
1997 Balanced Budget Act. Veterans medical spending should be
afforded the highest priority in the budget process in coming
fiscal years to ensure that high quality medical care is
accessible and available to all eligible veterans. The
conferees note that the highest priority was afforded to
veterans medical spending in the conference agreement on this
legislation, which makes available approximately $300,000,000
above the amount assumed in the budget agreement.
Deletes language proposed by the House which prohibits
the expenditure of funds to implement regulations regarding the
importation of PCBs and PCB items.
Deletes language proposed by the House which prohibits
the expenditure of funds for grants or contracts to
institutions of higher education which restrict ROTC
activities.
Deletes without prejudice language proposed by the Senate
requiring Senate hearings relating to compensation benefits for
radiation exposure. The Senate conferees support the Senate
provision regarding Senate hearings and a CBO cost study
concerning the atomic veterans issue. The conferees are
concerned that veterans who were exposed to ionizing radiation
while serving on active duty may have contracted various
diseases which currently are not on the presumptive list of
disabilities for radiogenic diseases, and urge the Secretary to
review this matter.
TITLE V--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
portfolio reengineering
Modifies S. 513, the ``Multifamily Assisted Housing
Reform and Affordability Act of 1997,'' which was incorporated,
by reference, by the Senate. The House-passed measure did not
include a similar provision. The policies contained in this
provision ensure the continued economic and physical vitality
of the properties restructured under this title, protect the
FHA insurance fund from excessive defaults, reduce the cost of
rent subsidies paid to support insured projects, and guard
against possible displacement of families who live in these
buildings.
Title V of the Act is divided into four subtitles.
Subtitle A establishes a ``mark-to-market'' program to reduce
the costs of over-subsidized section 8 multifamily housing
properties insured by the Federal Housing Administration (FHA).
Subtitle B includes several miscellaneous provisions to reform
and establish new authority for the Secretary to recapture
interest reduction payment subsidies from section 236 insured
multifamily housing properties for purposes of providing
rehabilitation grants to properties suffering from deferred
maintenance. Subtitle C of the bill contains a number of
provisions to minimize the incidence of fraud and abuse with
regard to Federally assisted housing programs. Subtitle D
creates the Office of Multifamily Housings Assistance
restructuring.
Under the ``mark-to-market'' program, FHA-insured section
8 housing properties with above market rents are eligible for
debt restructuring to reduce rent levels to those of comparable
market rate properties or to the minimum level necessary to
support proper operations and maintenance. In response to
limitations with the Department's capacity, the legislation
shifts the administration and management of this portfolio from
the Department to capable entities charged with protecting the
affordable housing stock in a fiscally responsible manner.
Additionally, the legislation terminates the government's
relationship with owners who fail to comply with Federal
requirements and ends the practice of subsidizing properties
that are not economically viable.
selecting participating administrative entities
This legislation utilizes capable public entities,
nonprofits, and for-profit entities to act as participating
administrative entities (PAEs) on behalf of the Federal
government. Priority consideration is provided to public
agencies, namely State and local housing finance agencies. The
Secretary is required to provide interested public agencies
with an exclusive time period to determine if the entities are
qualified to act as PAEs. During this time period, the
Secretary is required to evaluate the public agencies'
qualifications, based on clearly established criteria, and to
notify the applicants regarding the status of their proposals.
The Secretary is required to select a public agency if it meets
the selection criteria. If the proposal is rejected, the
Secretary is required to provide a written explanation and an
opportunity for the applicant to respond. Even in situations
where a public agency is rejected under the exclusive time
period, the public agency is allowed to reapply when other non-
public entities are allowed to apply for the program. The
conferees expect the Secretary to utilize qualified housing
finance agencies (HFAs) to the greatest extent possible because
of the HFAs' experience and expertise in affordable housing and
their ability to ensure that the affordable housing stock is
protected in a fiscally responsible manner.
The conferees stress that the criteria established in the
bill relate to a wide range of factors that are intended to
assure that the PAE is capable of protecting the interests of
residents, properties, and communities. Similarly, the
conferees recognize that the participating administrative
entities will be carrying out complex duties. In many cases,
PAEs will be asked to determine, subject to guidelines
established by the Secretary, appropriate rent levels for the
project which will determine the section 8 subsidy cost and the
amount of debt that will be refinanced into a second mortgage.
As a result, they have the first responsibility for determining
the appropriate subsidy costs borne by Federal taxpayers and
the appropriate level of risk of nonpayment that Federal
taxpayers shall bear.
The conferees intend that any costs of any fees paid to
the participating administrative entities, under the portfolio
restructuring agreement are mandatory expenses of the
appropriate FHA fund.
Section 513(b) sets forth the process and criteria for
selecting participating administrative entities. The conferees
intend that these criteria and processes will result in the
selection of participating administrative entities that are
fully and unquestionably qualified to carry out these
responsibilities on behalf of the American taxpayer. They
should have the necessary expertise and capacity and the
ability to ascertain the public interest both in reducing cost
and risk and in maintaining the public purpose for which
Federal support of this housing is provided.
In situations where an HFA or local housing agency is not
selected at the PAE, the Secretary has the flexibility to
choose those qualified nonprofit organizations and other
entities that have affordable housing missions and experience
to serve as PAEs. If no qualified public or nonprofit entities
are selected, the Department is provided with authority to act
as the PAE in conjunction with other entities. The conferees
are concerned about the Department's capacity and expects the
Department or its contractors to carry out the restructuring
only where adequate capacity exists. Under no circumstances
shall a decision that directly affects the residents and
community be made without a public purpose entity involved.
Public purpose entities, including the Department, will be
involved in all critical functions such as developing the
rental assistance assessment plan, screening owners and
properties for mark-to-market and monitoring the portfolio
after restructuring.
To facilitate optimal capacity for the restructuring
program, interested public and nonprofit entities are
encouraged to partner with various other entities. For example,
public purpose entities could partner with public housing
agencies, private financial institutions, mortgage services,
nonprofit and for-profit housing organizations, Fannie Mae and
Freddie Mac, the Federal Home Loan Banks, and other State or
local mortgage insurance companies or bank lending consortia.
Further, coordination or partnerships between different State
and local housing entities are encouraged under this Act.
The Act envisions that the Department will compensate
participating administrative entities and other third parties
to accomplish the purpose of the Act. Other mechanisms, such as
equity sharing partnerships, are expressly prohibited beginning
in fiscal year 1999. (The demonstration authority continued
during fiscal year 1998 permits structures such as the
nonprofit joint venture structure already in use by the
Department in fiscal year 1997.)
Specifically, section 513(b)(6)(B) of the Act prohibits
any private entity from sharing, participating in, or otherwise
benefiting from any equity created, received, or restructured
as a result of the portfolio restructuring agreement. In
addition, section 517(d) of the Act prohibits the Secretary
from participating in any equity agreement or profit-sharing
agreement in conjunction with any eligible multifamily housing
project. These prohibitions were put in place because of
concerns that equity sharing arrangements might skew the
motivations of the participating administrative entities or the
Department in ways counter to the public interest.
The conferees note, however, that one of the public
purposes of this Act is to reduce the cost to the taxpayers of
section 8 subsidies and losses to the FHA insurance fund.
Moreover, during the savings and loan crisis, the Resolution
Trust Corporation found that the use of equity sharing
partnerships between the public sector and the private sector
resulted in lower losses to the taxpayer while effectively
achieving other public goals.
Likewise, the Department is using or is contemplating
using such structures in a way that is consistent with the
public interest. For example, under the FHA Mulifamily Housing
Demonstration Program, the Department entered into a joint
venture with a nonprofit organization selected through
competitive bidding to restructure selected mortgages with
assistance contracts that expired in fiscal year 1997.
Similarly, the Department in contemplating selling notes on
assisted projects to a partnership of state agencies and
private investors, motivated to provide maximum return to the
purchaser, and thus to the FHA fund, but with certain public
policy decisions reserved to the state agency.
Therefore, the conferees direct the Department to report
to the Committees of jurisdiction, no later than February 15,
1998, on the possible ways equity sharing partnerships might be
incorporated into this framework as an optional alternative
structure in implementing the Act, if the prohibitions in the
Act were to be lifted. The report should discuss the advantages
and disadvantages of those structures in achieving public
purposes. The report should also consider what tax impact, if
any, such structures would have on the owners of the projects.
Functions of Participating Administrative Entities (PAEs)
PAEs perform a variety of functions in order to reduce
project rents, address troubled projects and correct management
and ownership problems. PAEs are provided with
portfoliorestructuring program responsibilities through a working
agreement with the Secretary called ``Portfolio Restructuring
Agreements.'' Under these agreements, PAEs are authorized to take a
number of actions to fulfill the goals of this legislation. These
actions include restructuring the project's debt, screening out bad
projects and bad owners from the renewal and restructuring process,
creating partnerships with other housing and financial entities and
ensuring the project's long-term compliance with housing quality and
management performance requirements.
Before an eligible property is allowed to enter the
renewal and restructuring process, PAEs are required to
carefully evaluate the project owner's record in operating the
property and the property's physical condition. The Act
specifies the criteria which PAEs use to determine which
properties qualify for section 8 contract renewal and mortgage
restructuring. These criteria focus on ownership, management
performance and the economic viability of the properties. It is
at this time that the Federal government is provided with the
opportunity to cleanse the inventory of bad project owners and
properties which hurt residents and communities, and threaten
the financial interests of the American taxpayer. Owners or
purchasers who have been rejected from the restructuring
process have the right to dispute the basis for the rejection
and are provided with an opportunity to remedy the problem. The
Secretary or the PAE has the discretion to affirm, modify or
reverse any rejection.
If the property owners are prohibited from restructuring,
the Department is provided with authority to deal with the
property in several ways, including to sell or transfer the
project to a qualified purchaser. Preferences are provided to
resident organizations and tenant-endorsed community-based
nonprofit and public agency entities. If sales or transfers to
qualified purchasers are accepted, the project becomes eligible
to be restructured. In addition to sales and transfers, another
option is partial or complete demolition of the project if the
project is in such poor condition that rehabilitation is not
cost-effective. The Department may exercise its foreclosure and
property disposition powers to deal with troubled projects and
owners. Under any of these scenarios, residents are protected
from displacement with tenant-based assistance and reasonable
moving expense funds.
rent levels
Properties eligible for restructuring have rents set at a
reasonable level near or at market rates based on the rents of
other comparable properties in the market. In the event
comparable properties cannot be identified, the bill allows
rents to be 90 percent of the fair market rent (FMR). Exception
rents are allowed using the budget-based rent calculation
method when no comparable property exists or where 90 percent
of the FMR does not ensure the financial viability of the
properties. Budget-based exception rents are capped at 120
percent of the FMR and only 20 percent of the inventory's units
can receive these rents.
The conferees are sensitive to the reality that many of
the properties which may require budget-based exception rents
are concentrated in certain metropolitan or regional areas. In
particular, a large portion of the properties in the upper
Midwest are elderly facilities in rural areas, which are
particularly disadvantaged under the Department's fair market
rent system because these properties were built to a different
standard compared to general rental properties, and the nature
of the rental housing depresses the FMRs. To address these
types of problems, the Act provides the Department with
authority to waive the 20 percent limitation in any
jurisdiction which can demonstrate a special need. The
Secretary is also authorized to waive the 120 percent exception
rent cap on up to five percent of the restructured units in a
given year for unique situations. The conferees urge the
Secretary to exercise these options to ensure that certain
geographic areas are not adversely affected.
Likewise, in determining comparable rents, the
participating administrative entity may take into account or
may not take into account, as appropriate, units which are
subject to rent control. The conferees are concerned that, if
rent controlled units are excluded from the determination in
every case, restructured rents could be too high in areas
generally subject to rent controls. In that instance, taxpayers
would pay more than necessary in section 8 subsidies.
However, the conferees recognize that there will be
situations where rent controlled units may not be the most
useful determinants of market rents. For example, if in
determining comparable rents the participating administrative
entity finds a mix of controlled and uncontrolled buildings
similar to the subject property, there may be justification to
use only the uncontrolled properties as indicative of market
rents. In addition, a participating administrative entity
determining comparable rents in an area which contains both
controlled and uncontrolled properties may choose to use
uncontrolled properties as the source of comparability for a
project not subject to rent control and to use controlled
properties for a property subject to rent control. Finally, the
conferees believe that there may be instances in which the
participating administrative entity may need to look at rents
outside the jurisdiction to best determine comparable rents.
The conferees request the Department to provide flexible
program guidance on this matter to the participants.
type of rental assistance
The conference agreement mandates the continuation of
project-based rental assistance for properties that
predominantly serve elderly or disabled households and
properties located intight rental markets. The conferees expect
the Department to develop regulations, in consultation with affected
parties, that define what constitutes a ``predominantly elderly'' or
``disabled'' property and a ``tight'' rental market. In defining a
tight rental vacancy market, the conferees believe that a six percent
vacancy rate is reasonable. However, as stated previously, the
conferees expect some flexibility in the regulations to account for
local market variations. It is most likely that metropolitan areas such
as New York City, Boston, Salt Lake City, and the San Francisco Bay
area will be considered to be tight rental markets by most real estate
experts and, therefore, covered under the mandatory renewal provisions.
For the remainder of the inventory, PAEs are permitted to
either continue project-based assistance or can convert some or
all assisted units in a property to tenant-based assistance
pursuant to the rental assistance assessment plan. This
decision is made only after the PAE consults with the project
owner, local government officials and affected residents.
The conferees note that the Act establishes eight factors
to be considered by the participating administrative entity in
determining whether a section 8 contract should continue as
project-based or be converted to tenant-based certificates and
vouchers. Each of these factors is relevant to such
determination. The Act, however, given no weight to one factor
over another and the conferees have no predetermined
expectation about how many projects will be converted.
Instead, the importance of each factor is to be
determined in the context of each project. The conferees expect
that the participating administrative entity will not make a
numerical calculation of the number of factors weighing in
favor of tenant-basing and the number of factors weighing in
favor of project-basing, but instead will make a reasoned
judgment about how, in each case, to achieve an appropriate
balance of desired public policy goals as reflected by the
factors. The PAE may take up to five years to convert the
assistance to certificates and vouchers if the PAE decides the
transition period is necessary and if such a transition period
is necessary for the financial viability of the project.
mortgage restructuring and tax policy
On September 15, 1997, the House Committee on Banking,
Subcommittee on Housing and Community Opportunity, held a
hearing on the tax consequences of FHA-insured mortgage
restructuring for project owners. The subcommittee heard
testimony speculating that the Treasury Department, most
likely, would review the restructuring transactions envisioned
in the Act based on the individual facts and circumstances of
each project. Consequently, definitive answers could not be
provided about whether this restructuring proposal would result
in tax consequences for participating project owners.
Moreover, the subcommittee heard testimony that, even if
there was definitive guidance from the Treasury Department
about the treatment of the restructuring transactions, some
project owners could incur accelerated tax liabilities as a
result of the restructuring and that, as a result, some project
owners may not participate in the restructuring process.
Finally, additional testimony suggested that Congress has no
choice but to balance the budgetary cost of providing tax
relief legislation with the budgetary savings that the
restructuring proposals represent and with the program goal of
maintaining the stock of low-income housing. Therefore, the
conferees urge the committees of jurisdiction, early next year,
to consider necessary legislation to ensure that the housing
policy represented by this Act is not thwarted by owner
concerns about tax liability.
property rehabilitation
The conference agreement provides rehabilitation
assistance but limits the extent of rehabilitation to a non-
luxury standard to prevent abuse. To further safeguard against
excessive rehabilitation costs, a minimum 25 percent matching
requirement from the owner is included in the Act. The purpose
of this matching requirement is to encourage owners to invest
their own funds in their properties and to reduce the risk to
the Federal government. Rehabilitation assistance is provided
either through project reserves, grants funded from acquired
residual receipts, additional debt restructurings taken as part
of the mortgage restructuring transaction, or from the
rehabilitation grant program.
office of multifamily housing assistance restructuring
The Act establishes an Office of Multifamily Housing
Assistance Restructuring (OMHAR) within the Department, under
the direction of the Secretary, to implement the Act, to
oversee the multifamily housing restructuring process performed
by participating administrative entities and, when necessary,
to restructure the mortgage. The conferees intend that OMHAR be
staffed with expert employees and have access to private
expertise to accomplish the purposes of the Act.
To do so, OMHAR must have or obtain expertise and skills
in real estate development, in management and finance, in
financial and market analysis, in auditing, evaluation and
oversight, and in accounting and taxation. The conferees direct
the Secretary to ensure that such expertise and skills are
available to OMHAR. The Act gives the Secretary the flexibility
to obtain competent personnel from other agencies and to
contract for expert services. However, theconferees expect that
these avenues, and the existing Departmental staff, may not be
sufficient to obtain the necessary skills. Therefore, the conferees
expect that the Secretary may be required to hire new employees for
OMHAR to perform effectively.
special consultation procedures
Section 522 of the Act requires the Department to develop
final regulations within twelve months from the date of
enactment. During that period, the Department is to collect and
respond to numerous public comments on several issues. However,
in order to focus special attention on two critical issues, the
conferees have included special requirements for the Department
to seek comment through three public fora at which specified
parties may make recommendations on:
--the selection process for participating
administrative entities; and
--the mandatory renewal of certain contracts with
project-based assistance.
Regarding the selection of participating administrative
entities, the conferees stated previously that entities fully
qualified shall be selected to undertake the complex task of
restructuring the debt and assistance for multifamily projects.
To this end, the selection criteria are intended to assure
competent and efficient participants. The conferees urge the
Department to use the fora to elicit a wide range of concerns
and recommendations from affected parties as to implementing
the selection process to accomplish this end.
Section 522 also directs the Department to solicit views
on how to implement the requirements that section 8 assistance
be renewed as project-based assistance for tight markets
(section 515(c)(1)(A)) and when ``a predominant number'' of the
units are occupied by elderly and/or disabled families (section
515(c)(1)(B)). The conferees believe it would be helpful if
interested parties address the extent to which a project must
be occupied by elderly and/or disabled persons to qualify for
mandatory renewal, particularly rural projects which house
elderly and disabled persons, in light of the factors that must
be assessed in the rental assistance assessment plan.
conference total--with comparisons
The total new budget (obligational) authority for the
fiscal year 1998 recommended by the committee of conference,
with comparisons to the fiscal year 1997 amount, the 1998
budget estimates, and the House and Senate bills for 1998
follow:
New budget (obligational) authority, fiscal year 1997... $85,895,503,442
Budget estimates of new (obligational) authority, fiscal
year 1998........................................... 90,990,338,000
House bill, fiscal year 1998............................ 91,461,593,000
Senate bill, fiscal year 1998........................... 90,367,535,000
Conference agreement, fiscal year 1998.................. 90,735,430,000
Conference agreement compared with:
New budget (obligational) authority, fiscal year
1997.............................................. +4,839,926,558
Budget estimates of new (obligational) authority,
fiscal year 1998.................................. -254,908,000
House bill, fiscal year 1998........................ -726,163,000
Senate bill, fiscal year 1998....................... +367,895,000
Jerry Lewis,
Tom DeLay,
James T. Walsh,
Dave Hobson,
Joe Knollenberg,
R.P. Frelinghuysen,
Roger F. Wicker,
Bob Livingston,
Louis Stokes,
Alan B. Mollohan,
Marcy Kaptur,
Carrie P. Meek,
David E. Price,
Dave Obey,
Managers on the Part of the House.
Christopher S. Bond,
Conrad Burns,
Ted Stevens,
Richard Shelby,
Ben Nighthorse Campbell,
Larry E. Craig,
Thad Cochran,
Barbara A. Mikulski,
Patrick J. Leahy,
Frank R. Lautenberg,
Tom Harkin,
Barbara Boxer,
Robert C. Byrd,
Managers on the Part of the Senate.