PL-106-74 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 2000 US

(a) Short Title.--This title may be cited as the ``Preserving Affordable Housing for Senior Citizens and Families into the 21st Century Act''.

(b) Table of Contents.--The table of contents for this title is as follows:

Sec. 501. Short title and table of contents. Sec. 502. Regulations. Sec. 503. Effective date.

Subtitle A--Authorization of Appropriations for Supportive Housing for the Elderly and Persons With Disabilities

Sec. 511. Supportive housing for elderly persons. Sec. 512. Supportive housing for persons with disabilities. Sec. 513. Service coordinators and congregate services for elderly and disabled housing.

Subtitle B--Expanding Housing Opportunities for the Elderly and Persons With Disabilities

Sec. 521. Study of debt forgiveness for section 202 loans.

Sec. 522. Grants for conversion of elderly housing to assisted living facilities. Sec. 523. Use of section 8 assistance for assisted living facilities. Sec. 524. Size limitation for projects for persons with disabilities. Sec. 525. Commission on Affordable Housing and Health Care Facility Needs in the 21st Century.

Subtitle C--Renewal of Expiring Rental Assistance Contracts and Protection of Residents

Sec. 531. Renewal of expiring contracts and enhanced vouchers for project residents. Sec. 532. Section 236 assistance. Sec. 533. Rehabilitation of assisted housing. Sec. 534. Technical assistance. Sec. 535. Termination of section 8 contract and duration of renewal contract. Sec. 536. Eligibility of residents of flexible subsidy projects for enhanced vouchers. Sec. 537. Enhanced disposition authority. Sec. 538. Unified enhanced voucher authority.

The Secretary of Housing and Urban Development shall issue any regulations to carry out this title and the amendments made by this title that the Secretary determines may or will affect tenants of federally assisted housing only after notice and opportunity for public comment in accordance with the procedure under section 553 of title 5, United States Code, applicable to substantive rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section). Notice of such proposed rulemaking shall be provided by publication in the Federal Register. In issuing such regulations, the Secretary shall take such actions as may be necessary to ensure that such tenants are notified of, and provided an opportunity to participate in, the rulemaking, as required by such section 553.

(a) In General.--The provisions of this title and the amendments made by this title are effective as of the date of the enactment of this Act, unless such provisions or amendments specifically provide for effectiveness or applicability upon another date certain. (b) Effect of Regulatory Authority.--Any authority in this title or the amendments made by this title to issue regulations, and any specific requirement to issue regulations by a date certain, may not be construed to affect the effectiveness or applicability of the provisions of this title or the amendments made by this title under such provisions and amendments and subsection (a) of this section.

Subtitle A--Authorization of Appropriations for Supportive Housing for the Elderly and Persons With Disabilities

Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended by adding at the end the following new subsection: ``(m) Authorization of Appropriations.--There is authorized to be appropriated for providing assistance under this section $710,000,000 for fiscal year 2000.''.

Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended--

(1) by redesignating subsection (m) as subsection (n); and (2) by inserting after subsection (l) the following new subsection:

``(m) Authorization of Appropriations.--There is authorized to be appropriated for providing assistance under this section $201,000,000 for fiscal year 2000.''.

DISABLED HOUSING.

(a) Authorization of Appropriations for Federally Assisted Housing.--There is authorized to be appropriated to the Secretary of Housing and Urban Development $50,000,000 for fiscal year 2000 for the following purposes: (1) Grants for service coordinators for certain federally assisted multifamily housing.--For grants under section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632) for providing service coordinators. (2) Congregate services for federally assisted housing.--For contracts under section 802 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8011) to provide congregate services programs for eligible residents of eligible housing projects under subparagraphs (B) through (D) of subsection (k)(6) of such section.

(b) Public Housing.--There is authorized to be appropriated to the Secretary of Housing and Urban Development such sums as may be necessary for fiscal year 2000 for grants for use only for activities described in paragraph (2) of section 34(b) of the United States Housing Act of 1937 (42 U.S.C. 1437z-6(b)(2)) for renewal of all grants made in prior fiscal years for providing service coordinators and congregate services for the elderly and disabled in public housing.

Subtitle B--Expanding Housing Opportunities for the Elderly and Persons With Disabilities

(a) In General.--The Secretary of Housing and Urban Development shall conduct an analysis of the net impact on the Federal budget deficit or surplus of making available, on a one-time basis, to sponsors of projects assisted under section 202 of the Housing Act of 1959 (as in effect before the enactment of the Cranston-Gonzalez National Affordable Housing Act), forgiveness of any indebtedness to the Secretary relating to any remaining principal and interest under loans made under such section, together with a dollar-for-dollar reduction in the amount of rental assistance under section 8 of the United States Housing Act of 1937 or other rental assistance provided for such project. Such analysis shall take into consideration the full cost of future appropriations for rental assistance under such section 8 expected to be provided if such debt forgiveness does not take place, notwithstanding current budgetary treatment of such actions pursuant to the Congressional Budget Act of 1974. (b) Report.--Not later than the expiration of the 3-month period beginning on the date of the enactment of this Act, the

Secretary of Housing and Urban Development shall submit a report to the Congress containing the quantitative results of the analysis and an enumeration of any project or administrative benefits of such actions.

FACILITIES.

Title II of the Housing Act of 1959 is amended by inserting after section 202a (12 U.S.C. 1701q-1) the following new section:

``SEC. 202b. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING FACILITIES.

``(a) Grant Authority.--The Secretary of Housing and Urban Development may make grants in accordance with this section to owners of eligible projects described in subsection (b) for one or both of the following activities: ``(1) Repairs.--Substantial capital repairs to projects that are needed to rehabilitate, modernize, or retrofit aging structures, common areas, or individual dwelling units. ``(2) Conversion.--Activities designed to convert dwelling units in the eligible project to assisted living facilities for elderly persons.

``(b) Eligible Projects.--An eligible project described in this subsection is a multifamily housing project that is-- ``(1)(A) described in subparagraph (B), (C), (D), (E), (F), or (G) of section 683(2) of the Housing and Community Development Act of 1992 (42 U.S.C. 13641(2)), or (B) only to the extent amounts of the Department of Agriculture are made available to the Secretary of Housing and Urban Development for such grants under this section for such projects, subject to a loan made or insured under section 515 of the Housing Act of 1949 (42 U.S.C. 1485); ``(2) owned by a private nonprofit organization (as such term is defined in section 202); and ``(3) designated primarily for occupancy by elderly persons.

Notwithstanding any other provision of this subsection or this section, an unused or underutilized commercial property may be considered an eligible project under this subsection, except that the Secretary may not provide grants under this section for more than three such properties. For any such projects, any reference under this section to dwelling units shall be considered to refer to the premises of such properties. ``(c) Applications.--Applications for grants under this section shall be submitted to the Secretary in accordance with such procedures as the Secretary shall establish. Such applications shall contain-- ``(1) a description of the substantial capital repairs or the proposed conversion activities for which a grant under this section is requested; ``(2) the amount of the grant requested to complete the substantial capital repairs or conversion activities; ``(3) a description of the resources that are expected to be made available, if any, in conjunction with the grant under this section; and ``(4) such other information or certifications that the Secretary determines to be necessary or appropriate.

``(d) Funding for Services.--The Secretary may not make a grant under this section for conversion activities unless the

application contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted living facility, which may be provided by third parties. ``(e) Selection Criteria.--The Secretary shall select applications for grants under this section based upon selection criteria, which shall be established by the Secretary and shall include-- ``(1) in the case of a grant for substantial capital repairs, the extent to which the project to be repaired is in need of such repair, including such factors as the age of improvements to be repaired, and the impact on the health and safety of residents of failure to make such repairs; ``(2) in the case of a grant for conversion activities, the extent to which the conversion is likely to provide assisted living facilities that are needed or are expected to be needed by the categories of elderly persons that the assisted living facility is intended to serve, with a special emphasis on very low-income elderly persons who need assistance with activities of daily living; ``(3) the inability of the applicant to fund the repairs or conversion activities from existing financial resources, as evidenced by the applicant's financial records, including assets in the applicant's residual receipts account and reserves for replacement account; ``(4) the extent to which the applicant has evidenced community support for the repairs or conversion, by such indicators as letters of support from the local community for the repairs or conversion and financial contributions from public and private sources; ``(5) in the case of a grant for conversion activities, the extent to which the applicant demonstrates a strong commitment to promoting the autonomy and independence of the elderly persons that the assisted living facility is intended to serve; ``(6) in the case of a grant for conversion activities, the quality, completeness, and managerial capability of providing the services which the assisted living facility intends to provide to elderly residents, especially in such areas as meals, 24-hour staffing, and on-site health care; and ``(7) such other criteria as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively.

``(f ) Definitions.--For the purposes of this section-- ``(1) the term `assisted living facility' has the meaning given such term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)); and ``(2) the definitions in section 202(k) shall apply.

``(g) Authorization of Appropriations.--There is authorized to be appropriated for providing grants under this section such sums as may be necessary for fiscal year 2000.''.

(a) Voucher Assistance.--Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended by adding at the end the following new paragraph: ``(18) Rental assistance for assisted living facilities.--

``(A) In general.--A public housing agency may make assistance payments on behalf of a family that uses an assisted living facility as a principal place of residence and that uses such supportive services made available in the facility as the agency may require. Such payments may be made only for covering costs of rental of the dwelling unit in the assisted living facility and not for covering any portion of the cost of residing in such facility that is attributable to service relating to assisted living. ``(B) Rent calculation.-- ``(i) Charges included.--For assistance pursuant to this paragraph, the rent of the dwelling unit that is an assisted living facility with respect to which assistance payments are made shall include maintenance and management charges related to the dwelling unit and tenant-paid utilities. Such rent shall not include any charges attributable to services relating to assisted living. ``(ii) Payment standard.--In determining the monthly assistance that may be paid under this paragraph on behalf of any family residing in an assisted living facility, the public housing agency shall utilize the payment standard established under paragraph (1), for the market area in which the assisted living facility is located, for the applicable size dwelling unit. ``(iii) Monthly assistance payment.--The monthly assistance payment for a family assisted under this paragraph shall be determined in accordance with paragraph (2) (using the rent and payment standard for the dwelling unit as determined in accordance with this subsection). ``(C) Definition.--For the purposes of this paragraph, the term `assisted living facility' has the meaning given that term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)), except that such a facility may be contained within a portion of a larger multifamily housing project.''.

(b) Project-Based Assistance.--Section 202b of the Housing Act of 1959, as added by section 522 of this Act, is amended-- (1) by redesignating subsections (f ) and (g) as subsections (g) and (h), respectively; and (2) by inserting after subsection (e) the following new subsection:

``(f ) Section 8 Project-Based Assistance.-- ``(1) Eligibility.--Notwithstanding any other provision of law, a multifamily project which includes one or more dwelling units that have been converted to assisted living facilities using grants made under this section shall be eligible for project-based assistance under section 8 of the United States Housing Act of 1937, in the same manner in which the project would be eligible for such assistance but for the assisted living facilities in the project. ``(2) Calculation of rent.--For assistance pursuant to this subsection, the maximum monthly rent of a dwelling unit that is an assisted living facility with respect to which assistance payments are made shall not include charges attributable to services relating to assisted living.''.

(a) Limitation.--Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended-- (1) in subsection (k)(4), by inserting ``, subject to the limitation under subsection (h)(6)'' after ``prescribe''; and (2) in subsection (l), by adding at the end the following new paragraph: ``(4) Size limitation.--Of any amounts made available for any fiscal year and used for capital advances or project rental assistance under paragraphs (1) and (2) of subsection (d), not more than 25 percent may be used for supportive housing which contains more than 24 separate dwelling units.''.

(b) Study.--Not later than the expiration of the 3-month period beginning on the date of the enactment of this Act, the Secretary of Housing and Urban Development shall conduct a study and submit a report to the Congress regarding-- (1) the extent to which the authority of the Secretary under section 811(k)(4) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(k)(4)), as in effect immediately before the enactment of this Act, has been used in each year since 1990 to provide for assistance under such section for supportive housing for persons with disabilities having more than 24 separate dwelling units; (2) the per-unit costs of, and the benefits and problems associated with, providing such housing in projects having eight or less dwelling units, 8 to 24 units, and more than 24 units; and (3) the per-unit costs of, and the benefits and problems associated with providing housing under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) in projects having 30 to 50 dwelling units, in projects having more than 50 but not more than 80 dwelling units, in projects having more than 80 but not more than 120 dwelling units, and in projects having more than 120 dwelling units, but the study shall also examine the social considerations afforded by smaller and moderate-size developments and shall not be limited to economic factors.

AND HEALTH CARE FACILITY NEEDS IN THE 21ST CENTURY.

(a) Establishment.--There is hereby established a commission to be known as the Commission on Affordable Housing and Health Care Facility Needs in the 21st Century (in this section referred to as the ``Commission''. (b) Study.--The duty of the Commission shall be to conduct a study that-- (1) compiles and interprets information regarding the expected increase in the population of persons 62 years of age or older, particularly information regarding distribution of income levels, homeownership and home equity rates, and degree or extent of health and independence of living; (2) provides an estimate of the future needs of seniors for affordable housing and assisted living and health care facilities; (3) provides a comparison of estimate of such future needs with an estimate of the housing and facilities expected to be

provided under existing public programs, and identifies possible actions or initiatives that may assist in providing affordable housing and assisted living and health care facilities to meet such expected needs; (4) identifies and analyzes methods of encouraging increased private sector participation, investment, and capital formation in affordable housing and assisted living and health care facilities for seniors through partnerships between public and private entities and other creative strategies; (5) analyzes the costs and benefits of comprehensive aging- in-place strategies, taking into consideration physical and mental well-being and the importance of coordination between shelter and supportive services; (6) identifies and analyzes methods of promoting a more comprehensive approach to dealing with housing and supportive service issues involved in aging and the multiple governmental agencies involved in such issues, including the Department of Housing and Urban Development and the Department of Health and Human Services; and (7) examines how to establish intergenerational learning and care centers and living arrangements, in particular to facilitate appropriate environments for families consisting only of children and a grandparent or grandparents who are the head of the household.

(c) Membership.-- (1) Number and Appointment.--The Commission shall be composed of 14 members, appointed not later than January 1, 2000, as follows: (A) Two co-chairpersons, of whom-- (i) one co-chairperson shall be appointed by a committee consisting of the chairman of the Subcommittee on Housing and Community Opportunities of the House of Representatives and the chairman of the Subcommittee on Housing and Transportation of the Senate, and the chairmen of the Subcommittees on the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies of the Committees on Appropriations of the House of Representatives and the Senate; and (ii) one co-chairperson shall be appointed by a committee consisting of the ranking minority member of the Subcommittee on Housing and Community Opportunities of the House of Representatives and the ranking minority member of the Subcommittee on Housing and Transportation of the Senate, and the ranking minority members of the Subcommittees on the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies of the Committees on Appropriations of the House of Representatives and the Senate. (B) Six members appointed by the Chairman and Ranking Minority Member of the Committee on Banking and Financial Services of the House of Representatives and the Chairman and Ranking Minority Member of the Committee on Appropriations of the House of Representatives.

(C) Six members appointed by the Chairman and Ranking Minority Member of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Chairman and Ranking Minority Member of the Committee on Appropriations of the Senate. (2) Qualifications.--Appointees should have proven expertise in directing, assembling, or applying capital resources from a variety of sources to the successful development of affordable housing, assisted living facilities, or health care facilities. (3) Vacancies.--Any vacancy on the Commission shall not affect its powers and shall be filled in the manner in which the original appointment was made. (4) Chairpersons.--The members appointed pursuant to paragraph (1)(A) shall serve as co-chairpersons of the Commission. (5) Prohibition of pay.--Members of the Commission shall serve without pay. (6) Travel expenses.--Each member of the Commission shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code. (7) Quorum.--A majority of the members of the Commission shall constitute a quorum but a lesser number may hold hearings. (8) Meetings.--The Commission shall meet at the call of the Chairpersons.

(d) Director and Staff.-- (1) Director.--The Commission shall have a Director who shall be appointed by the Chairperson. The Director shall be paid at a rate not to exceed the rate of basic pay payable for level V of the Executive Schedule. (2) Staff.--The Commission may appoint personnel as appropriate. The staff of the Commission shall be appointed subject to the provisions of title 5, United States Code, governing appointments in the competitive service, and shall be paid in accordance with the provisions of chapter 51 and subchapter III of chapter 53 of that title relating to classification and General Schedule pay rates. (3) Experts and consultants.--The Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, but at rates for individuals not to exceed the daily equivalent of the maximum annual rate of basic pay payable for the General Schedule. (4) Staff of federal agencies.--Upon request of the Commission, the head of any Federal department or agency may detail, on a reimbursable basis, any of the personnel of that department or agency to the Commission to assist it in carrying out its duties under this Act.

(e) Powers.-- (1) Hearings and sessions.--The Commission may, for the purpose of carrying out this section, hold hearings, sit and act at times and places, take testimony, and receive evidence as the Commission considers appropriate. (2) Powers of members and agents.--Any member or agent of the Commission may, if authorized by the Commission,

take any action which the Commission is authorized to take by this section. (3) Obtaining official data.--The Commission may secure directly from any department or agency of the United States information necessary to enable it to carry out this Act. Upon request of the Chairpersons of the Commission, the head of that department or agency shall furnish that information to the Commission. (4) Gifts, bequests, and devises.--The Commission may accept, use, and dispose of gifts, bequests, or devises of services or property, both real and personal, for the purpose of aiding or facilitating the work of the Commission. Gifts, bequests, or devises of money and proceeds from sales of other property received as gifts, bequests, or devises shall be deposited in the Treasury and shall be available for disbursement upon order of the Commission. (5) Mails.--The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the United States. (6) Administrative support services.--Upon the request of the Commission, the Administrator of General Services shall provide to the Commission, on a reimbursable basis, the administrative support services necessary for the Commission to carry out its responsibilities under this section. (7) Contract authority.--The Commission may contract with and compensate Government and private agencies or persons for services, without regard to section 3709 of the Revised Statutes (41 U.S.C. 5).

(f ) Report.--The Commission shall submit to the Committees on Banking and Financial Services and Appropriations of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Appropriations of the Senate, a final report not later than December 31, 2001. The report shall contain a detailed statement of the findings and conclusions of the Commission with respect to the study conducted under subsection (b), together with its recommendations for legislation, administrative actions, and any other actions the Commission considers appropriate.

(g) Termination.--The Commission shall terminate on June 30, 2002. Section 14(a)(2)(B) of the Federal Advisory Committee Act (5 U.S.C. App.; relating to the termination of advisory committees) shall not apply to the Commission.

Subtitle C--Renewal of Expiring Rental Assistance Contracts and Protection of Residents

PROJECT RESIDENTS.

(a) In General.--Section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended to read as follows:

``SEC. 524. RENEWAL OF EXPIRING PROJECT-BASED SECTION 8 CONTRACTS.

``(a) In General.-- ``(1) Renewal.--Subject to paragraph (2), upon termination or expiration of a contract for project-based assistance under section 8 for a multifamily housing project (and notwithstanding section 8(v) of the United States Housing Act of 1937 for loan management assistance), the Secretary shall, at the request of the owner of the project and to the extent sufficient amounts are made available in appropriation Acts, use amounts available for the renewal of assistance under section 8 of such Act to provide such assistance for the project. The assistance shall be provided under a contract having such terms and conditions as the Secretary considers appropriate, subject to the requirements of this section. This section shall not require contract renewal for a project that is eligible under this subtitle for a mortgage restructuring and rental assistance sufficiency plan, if there is no approved plan for the project and the Secretary determines that such an approved plan is necessary. ``(2) Prohibition on renewal.--Notwithstanding part 24 of title 24 of the Code of Federal Regulations, the Secretary may elect not to renew assistance for a project otherwise required to be renewed under paragraph (1) or provide comparable benefits under paragraph (1) or (2) of subsection (e) for a project described in either such paragraph, if the Secretary determines that a violation under paragraphs (1) through (4) of section 516(a) has occurred with respect to the project. For purposes of such a determination, the provisions of section 516 shall apply to a project under this section in the same manner and to the same extent that the provisions of such section apply to eligible multifamily housing projects, except that the Secretary shall make the determination under section 516(a)(4). ``(3) Contract term for mark-up-to-market contracts.--In the case of an expiring or terminating contract that has rent levels less than comparable market rents for the market area, if the rent levels under the renewal contract under this section are equal to comparable market rents for the market area, the contract shall have a term of not less than 5 years, subject to the availability of sufficient amounts in appropriation Acts. ``(4) Renewal rents.--Except as provided in subsection (b), the contract for assistance shall provide assistance at the following rent levels: ``(A) Market rents.--At the request of the owner of the project, at rent levels equal to the lesser of comparable market rents for the market area or 150 percent of the fair market rents, in the case only of a project that-- ``(i) has rent levels under the expiring or terminating contract that do not exceed such comparable market rents; ``(ii) does not have a low- and moderate- income use restriction that can not be eliminated by unilateral action by the owner; ``(iii) is decent, safe, and sanitary housing, as determined by the Secretary; ``(iv) is not--

``(I) owned by a nonprofit entity; ``(II) subject to a contract for moderate rehabilitation assistance under section 8(e)(2) of the United States Housing Act of 1937, as in effect before October 1, 1991; or ``(III) a project for which the public housing agency provided voucher assistance to one or more of the tenants after the owner has provided notice of termination of the contract covering the tenant's unit; and ``(v) has units assisted under the contract for which the comparable market rent exceeds 110 percent of the fair market rent. The Secretary may adjust the percentages of fair market rent (as specified in the matter preceding clause (i) and in clause (v)), but only upon a determination and written notification to the Congress within 10 days of making such determination, that such adjustment is necessary to ensure that this subparagraph covers projects with a high risk of nonrenewal of expiring contracts for project-based assistance. ``(B) Reduction to market rents.--In the case of a project that has rent levels under the expiring or terminating contract that exceed comparable market rents for the market area, at rent levels equal to such comparable market rents. ``(C) Rents not exceeding market rents.--In the case of a project that is not subject to subparagraph (A) or (B), at rent levels that-- ``(i) are not less than the existing rents under the terminated or expiring contract, as adjusted by an operating cost adjustment factor established by the Secretary (which shall not result in a negative adjustment), if such adjusted rents do not exceed comparable market rents for the market area; and ``(ii) do not exceed comparable market rents for the market area. In determining the rent level for a contract under this subparagraph, the Secretary shall approve rents sufficient to cover budget-based cost increases and shall give greater consideration to providing rent at a level up to comparable market rents for the market area based on the number of the criteria under clauses (i) through (iii) of subparagraph (D) that the project meets. ``(D) Waiver of 150 percent limitation.-- Notwithstanding subparagraph (A), at rent levels up to comparable market rents for the market area, in the case of a project that meets the requirements under clauses (i) through (v) of subparagraph (A) and-- ``(i) has residents who are a particularly vulnerable population, as demonstrated by a high percentage of units being rented to elderly families, disabled families, or large families; ``(ii) is located in an area in which tenant- based assistance would be difficult to use, as demonstrated by a low vacancy rate for affordable housing, a high

turnback rate for vouchers, or a lack of comparable rental housing; or ``(iii) is a high priority for the local community, as demonstrated by a contribution of State or local funds to the property. In determining the rent level for a contract under this subparagraph, the Secretary shall approve rents sufficient to cover budget-based cost increases and shall give greater consideration to providing rent at a level up to comparable market rents for the market area based on the number of the criteria under clauses (i) through (iv) that the project meets. ``(5) Comparable market rents and comparison with fair market rents.--The Secretary shall prescribe the method for determining comparable market rent by comparison with rents charged for comparable properties (as such term is defined in section 512), which may include appropriate adjustments for utility allowances and adjustments to reflect the value of any subsidy (other than section 8 assistance) provided by the Department of Housing and Urban Development.

``(b) Exception Rents.-- ``(1) Renewal.--In the case of a multifamily housing project described in paragraph (2), pursuant to the request of the owner of the project, the contract for assistance for the project pursuant to subsection (a) shall provide assistance at the lesser of the following rent levels: ``(A) Adjusted existing rents.--The existing rents under the expiring contract, as adjusted by an operating cost adjustment factor established by the Secretary (which shall not result in a negative adjustment). ``(B) Budget-based rents.--Subject to a determination by the Secretary that a rent level under this subparagraph is appropriate for a project, a rent 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). ``(2) Projects covered.--A multifamily housing project described in this paragraph is a multifamily housing project that-- ``(A) is not an eligible multifamily housing project under section 512(2); or ``(B) is exempt from mortgage restructuring under this subtitle pursuant to section 514(h). ``(3) Moderate rehabilitation projects.--In the case of a project with a contract under the moderate rehabilitation program, other than a moderate rehabilitation contract under section 441 of the Stewart B. McKinney Homeless Assistance Act, pursuant to the request of the owner of the project, the contract for assistance for the project pursuant to subsection (a) shall provide assistance at the lesser of the following rent levels: ``(A) Adjusted existing rents.--The existing rents under the expiring contract, as adjusted by an operating cost adjustment factor established by the Secretary (which shall not result in a negative adjustment). ``(B) Fair market rents.--Fair market rents (less any amounts allowed for tenant-purchased utilities).

``(C) Market rents.--Comparable market rents for the market area.

``(c) Rent Adjustments After Renewal of Contract.-- ``(1) Required.--After the initial renewal of a contract for assistance under section 8 of the United States Housing Act of 1937 pursuant to subsection (a), (b)(1), or (e)(2), the Secretary shall annually adjust the rents using an operating cost adjustment factor established by the Secretary (which shall not result in a negative adjustment) or, upon the request of the owner and subject to approval of the Secretary, on a budget basis. In the case of projects with contracts renewed pursuant to subsection (a) or pursuant to subsection (e)(2) at rent levels equal to comparable market rents for the market area, at the expiration of each 5-year period, the Secretary shall compare existing rents with comparable market rents for the market area and may make any adjustments in the rent necessary to maintain the contract rents at a level not greater than comparable market rents or to increase rents to comparable market rents. ``(2) Discretionary.--In addition to review and adjustment required under paragraph (1), in the case of projects with contracts renewed pursuant to subsection (a) or pursuant to subsection (e)(2) at rent levels equal to comparable market rents for the market area, the Secretary may, at the discretion of the Secretary but only once within each 5-year period referred to in paragraph (1), conduct a comparison of rents for a project and adjust the rents accordingly to maintain the contract rents at a level not greater than comparable market rents or to increase rents to comparable market rents.

``(d) Enhanced Vouchers Upon Contract Expiration.-- ``(1) In general.--In the case of a contract for project- based assistance under section 8 for a covered project that is not renewed under subsection (a) or (b) of this section (or any other authority), to the extent that amounts for assistance under this subsection are provided in advance in appropriation Acts, upon the date of the expiration of such contract the Secretary shall make enhanced voucher assistance under section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)) available on behalf of each low-income family who, upon the date of such expiration, is residing in an assisted dwelling unit in the covered project. ``(2) Definitions.--For purposes of this subsection, the following definitions shall apply: ``(A) Assisted dwelling unit.--The term `assisted dwelling unit' means a dwelling unit that-- ``(i) is in a covered project; and ``(ii) is covered by rental assistance provided under the contract for project-based assistance for the covered project. ``(B) Covered project.--The term `covered project' means any housing that-- ``(i) consists of more than four dwelling units; ``(ii) 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 (as in effect before October 1, 1991); ``(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, which contract will (under its own terms) expire during the period consisting of fiscal years 2000 through 2004; and ``(iii) is not housing for which residents are eligible for enhanced voucher assistance as provided, pursuant to 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; 110 Stat. 2884) or any other subsequently enacted provision of law, in lieu of any benefits under section 223 of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4113). ``(4) Authorization of appropriations.--There are authorized to be appropriated for each of fiscal years 2000, 2001, 2002, 2003, and 2004 such sums as may be necessary for enhanced voucher assistance under this subsection.

``(e) Contractual Commitments Under Preservation Laws.--Except as provided in subsection (a)(2) and notwithstanding any other provision of this subtitle, the following shall apply: ``(1) Preservation projects.--Upon expiration of a contract for assistance under section 8 for a project that is subject to an approved plan of action under the Emergency Low Income Housing Preservation Act of 1987 (12 U.S.C. 1715l note) or the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4101 et seq.), to the extent amounts are specifically made available in appropriation Acts, the Secretary shall provide to the owner benefits comparable to those provided under such plan of action, including distributions, rent increase procedures, and duration of low-income affordability restrictions. This paragraph shall apply to projects with contracts expiring before, on, or after the date of the enactment of this section. ``(2) Demonstration projects.-- ``(A) In general.--Upon expiration of a contract for assistance under section 8 for a project entered into pursuant to any authority specified in subparagraph (B) for

which the Secretary determines that debt restructuring is inappropriate, the Secretary shall, at the request of the owner of the project and to the extent sufficient amounts are made available in appropriation Acts, provide benefits to the owner comparable to those provided under such contract, including annual distributions, rent increase procedures, and duration of low-income affordability restrictions. This paragraph shall apply to projects with contracts expiring before, on, or after the date of the enactment of this section. ``(B) Demonstration programs.--The authority specified in this subparagraph is the authority under-- ``(i) section 210 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (Public Law 104-134; 110 Stat. 1321-285; 42 U.S.C. 1437f note); ``(ii) section 212 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (Public Law 104-204; 110 Stat. 2897; 42 U.S.C. 1437f note); and ``(iii) either of such sections, pursuant to any provision of this title.

``(f ) Preemption of Conflicting State Laws Limiting Distributions.-- ``(1) In general.--Except as provided in paragraph (2), no State or political subdivision of a State may establish, continue in effect, or enforce any law or regulation that limits or restricts, to an amount that is less than the amount provided for under the regulations of the Secretary establishing allowable project distributions to provide a return on investment, the amount of surplus funds accruing after the date of the enactment of this section that may be distributed from any multifamily housing project assisted under a contract for rental assistance renewed under any provision of this section (except subsection (b)) to the owner of the project. ``(2) Exception and waiver.--Paragraph (1) shall not apply to any law or regulation to the extent such law or regulation applies to-- ``(A) a State-financed multifamily housing project; or ``(B) a multifamily housing project for which the owner has elected to waive the applicability of paragraph (1). ``(3) Treatment of low-income use restrictions.--This subsection may not be construed to provide for, allow, or result in the release or termination, for any project, of any low- or moderate-income use restrictions that can not be eliminated by unilateral action of the owner of the project.

``(g) Applicability.--Except to the extent otherwise specifically provided in this section, this section shall apply with respect to any multifamily housing project having a contract for project-based assistance under section 8 that terminates or expires during fiscal year 2000 or thereafter.''. (b) Definition of Eligible Multifamily Housing Project.--Section 512(2) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by inserting after and below subparagraph (C) the following:

``Such term does not include any project with an expiring contract described in paragraph (1) or (2) of section 524(e).''.

(c) Projects Exempted From Restructuring Agreements.--Section 514(h) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by inserting before the semicolon at the end the following: ``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 subtitle is in conflict with applicable law or agreements governing such financing''. (d) Conforming Amendments.--Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) is amended-- (1) by designating as subsection (v) the sentence added by section 405(c) of The Balanced Budget Downpayment Act, I (Public Law 104-99; 110 Stat. 44); and (2) by striking subsection (w).

(a) Continued Receipt of Subsidies Upon Refinancing.--Section 236(e) of the National Housing Act (12 U.S.C. 1715z-1(e)) is amended-- (1) by inserting ``(1)'' after ``(e)''; and (2) by adding at the end the following new paragraph:

``(2) A project for which interest reduction payments are made under this section and for which the mortgage on the project has been refinanced shall continue to receive the interest reduction payments under this section under the terms of the contract for such payments, but only if the project owner enters into such binding commitments as the Secretary may require (which shall be applicable to any subsequent owner) to ensure that the owner will continue to operate the project in accordance with all low-income affordability restrictions for the project in connection with the Federal assistance for the project for a period having a duration that is not less than the term for which such interest reduction payments are made plus an additional 5 years.''. (b) Retention of Excess Income.--Section 236(g) of the National Housing Act (12 U.S.C. 1715z-1(g)) is amended-- (1) by inserting ``(1)'' after ``(g)''; (2) by striking the last sentence; and (3) by adding at the end the following new paragraphs:

``(2) Subject to paragraph (3) and notwithstanding any other requirements of this subsection, a project owner may retain some or all of such excess charges for project use if authorized by the Secretary. Such excess charges shall be used for the project and upon terms and conditions established by the Secretary, unless the Secretary permits the owner to retain funds for non-project use after a determination that the project is well-maintained housing in good condition and that the owner has not engaged in material adverse financial or managerial actions or omissions as described in section 516 of the Multifamily Assisted Housing Reform and Affordability Act of 1997. In connection with the retention of funds for non-project use, the Secretary may require the project owner to enter into a binding commitment (which shall be applicable to any subsequent owner) to ensure that the owner will continue to operate the project in accordance with all low-income affordability restrictions for the project in connection with

the Federal assistance for the project for a period having a duration of not less than the term of the existing affordability restrictions plus an additional 5 years. ``(3) The authority under paragraph (2) to retain and use excess charges shall apply-- ``(A) during fiscal year 2000, to all project owners

collecting such excess charges; and ``(B) during fiscal year 2001 and thereafter-- ``(i) to any owner of: (I) a project with a mortgage insured under this section; (II) a project with a mortgage formerly insured under this section if such mortgage is held by the Secretary and the owner of such project is current with respect to the mortgage obligation; or (III) a project previously assisted under subsection (b) but without a mortgage insured under this section if the project was insured under section 207 of this Act before July 30, 1998, pursuant to section 223(f ) of this Act and assisted under subsection (b); and ``(ii) to other project owners not referred to in clause (i) who collect such excess charges, but only to the extent that such retention and use is approved in advance in an appropriation Act.''.

(c) Previously Owed Excess Income.--Section 236(g) of the National Housing Act (12 U.S.C. 1715z-1(g)), as amended by subsection (b) of this section, is further amended by adding at the end the following new paragraph: ``(4) The Secretary shall not withhold approval of the retention by the owner of such excess charges because of the existence of unpaid excess charges if such unpaid amount is being remitted to the Secretary over a period of time in accordance with a workout agreement with the Secretary, unless the Secretary determines that the owner is in violation of the workout agreement.''. (d) Flexibility Regarding Basic Rents and Market Rents.--Section 236(f ) of the National Housing Act (12 U.S.C. 1715z-1(f )(1)) is amended by striking the subsection designation and all that follows through the end of paragraph (1) and inserting the following: ``(f )(1)(A)(i) For each dwelling unit there shall be established, with the approval of the Secretary, a basic rental charge and fair market rental charge. ``(ii) The basic rental charge shall be-- ``(I) the amount needed to operate the project with payments of principal and interest due under a mortgage bearing interest at the rate of 1 percent per annum; or ``(II) an amount greater than that determined under clause (ii)(I), but not greater than the market rent for a comparable unassisted unit, reduced by the value of the interest reduction payments subsidy.

``(iii) The fair market rental charge shall be-- ``(I) the amount needed to operate the project with payments of principal, interest, and mortgage insurance premium which the mortgagor is obligated to pay under the mortgage covering the project; or ``(II) an amount greater than that determined under clause (iii)(I), but not greater than the market rent for a comparable unassisted unit.

``(iv) The Secretary may approve a basic rental charge and fair market rental charge for a unit that exceeds the minimum amounts permitted by this subparagraph for such charges only if-- ``(I) the approved basic rental charge and fair market rental charges each exceed the applicable minimum charge by the same amount; and ``(II) the project owner agrees to restrictions on project use or mortgage prepayment that are acceptable to the Secretary.

``(v) The Secretary may approve a basic rental charge and fair market rental charge under this paragraph for a unit with assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) that differs from the basic rental charge and fair market rental charge for a unit in the same project that is similar in size and amenities but without such assistance, as needed to ensure equitable treatment of tenants in units without such assistance. ``(B)(i) The rental charge for each dwelling unit shall be at the basic rental charge or such greater amount, not exceeding the fair market rental charge determined pursuant to subparagraph (A), as represents 30 percent of the tenant's adjusted income, except as otherwise provided in this subparagraph. ``(ii) In the case of a project which contains more than 5000 units, is subject to an interest reduction payments contract, and is financed under a State or local project, the Secretary may reduce the rental charge ceiling, but in no case shall the rental charge be below the basic rental charge set forth in subparagraph (A)(ii)(I). ``(iii) For plans of action approved for capital grants under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 or the Emergency Low Income Housing Preservation Act of 1987, the rental charge for each dwelling unit shall be at the minimum basic rental charge set forth in subparagraph (A)(ii)(I) or such greater amount, not exceeding the lower of: (I) the fair market rental charge set forth in subparagraph (A)(iii)(I); or (II) the actual rent paid for a comparable unit in comparable unassisted housing in the market area in which the housing assisted under this section is located, as represents 30 percent of the tenant's adjusted income. ``(C) With respect to those projects which the Secretary determines have separate utility metering paid by the tenants for some or all dwelling units, the Secretary may-- ``(i) permit the basic rental charge and the fair market rental charge to be determined on the basis of operating the project without the payment of the cost of utility services used by such dwelling units; and ``(ii) permit the charging of a rental for such dwelling units at such an amount less than 30 percent of a tenant's adjusted income as the Secretary determines represents a proportionate decrease for the utility charges to be paid by such tenant, but in no case shall rental be lower than 25 percent of a tenant's adjusted income.''.

(e) Effective Date of 1998 Provisions.--Section 236(g) of the National Housing Act (12 U.S.C. 1715z-1(g)), as amended by section 227 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1999 (Public Law 105-276; 112 Stat. 2490) shall be effective

on the date of the enactment of such Public Law 105-276, and any excess rental charges referred to in such section that have been collected since such date of the enactment with respect to projects with mortgages insured under section 207 of the National Housing Act (12 U.S.C. 1713) may be retained by the project owner unless the Secretary of Housing and Urban Development specifically provides otherwise. The Secretary may return any excess charges remitted to the Secretary since such date of the enactment.

(f ) Effective Date.--This section shall take effect, and the amendments made by this section are made and shall apply, on the date of the enactment of this Act.

(a) Rehabilitation Loans From Recaptured IRP Amounts.--Section 236(s) of the National Housing Act (12 U.S.C. 1715z-1(s)) is amended-- (1) by striking the subsection designation and heading and inserting the following:

``(s) Grants and Loans for Rehabilitation of Multifamily Projects.-- ''; (2) in paragraph (1), by inserting ``and loans'' after ``grants''; (3) in paragraph (2)-- (A) in the matter preceding subparagraph (A), by striking ``capital grant assistance under this subsection'' and inserting ``capital assistance under this subsection under a grant or loan only''; and (B) in subparagraph (D)(i), by striking ``capital grant assistance'' and inserting ``capital assistance under this subsection from a grant or loan (as appropriate)''; (4) in paragraph (3), by striking all of the matter that precedes subparagraph (A) and inserting the following: ``(3) Eligible uses.--Amounts from a grant or loan under this subsection may be used only for projects eligible under paragraph (2) for the purposes of--''; (5) in paragraph (4)-- (A) by striking the paragraph heading and inserting ``Grant and loan agreements''; and (B) by inserting ``or loan'' after ``grant'', each place it appears; (6) in paragraph (5), by inserting ``or loan'' after ``grant'', each place it appears; (7) in paragraph (6), by adding at the end the following new subparagraph: ``(D) Loans.--In making loans under this subsection using the amounts that the Secretary has recaptured from contracts for interest reduction payments pursuant to clause (i) or (ii) of paragraph (7)(A)-- ``(i) the Secretary may use such recaptured amounts for costs (as such term is defined in section 502 of the Congressional Budget Act of 1974) of such loans; and ``(ii) the Secretary may make loans in any fiscal year only to the extent or in such amounts that amounts are used under clause (i) to cover costs of such loans.'';

(8) by redesignating paragraphs (5) and (6) (as amended by the preceding provisions of this subsection) as paragraphs (6) and (7); and (9) by inserting after paragraph (4) the following new paragraph: ``(5) Loan terms.--A loan under this subsection-- ``(A) shall provide amounts for the eligible uses under paragraph (3) in a single loan disbursement of loan principal; ``(B) shall be repaid, as to principal and interest, on behalf of the borrower using amounts recaptured from contracts for interest reduction payments pursuant to clause (i) or (ii) of paragraph (7)(A); ``(C) shall have a term to maturity of a duration not shorter than the remaining period for which the interest reduction payments for the insured mortgage or mortgages that fund repayment of the loan would have continued after extinguishment or writedown of the mortgage (in accordance with the terms of such mortgage in effect immediately before such extinguishment or writedown); ``(D) shall bear interest at a rate, as determined by the Secretary of the Treasury, that is based upon the current market yields on outstanding marketable obligations of the United States having comparable maturities; and ``(E) shall involve a principal obligation of an amount not exceeding the amount that can be repaid using amounts described in subparagraph (B) over the term determined in accordance with subparagraph (C), with interest at the rate determined under subparagraph (D).''.

(b) IRP Capital Grants Requirement for Extension of Low-Income Affordability Requirements.--Section 236(s) of the National Housing Act (12 U.S.C. 1715z-1(s)) is amended-- (1) in paragraph (2)-- (A) by redesignating subparagraphs (C) and (D), as amended by the preceding provisions of this section, as subparagraphs (D) and (E), respectively; and (B) by inserting after subparagraph (B) the following new subparagraph: ``(C) the project owner enters into such binding commitments as the Secretary may require (which shall be applicable to any subsequent owner) to ensure that the owner will continue to operate the project in accordance with all low-income affordability restrictions for the project in connection with the Federal assistance for the project for a period having a duration that is not less than the period referred to in paragraph (5)(C);''; and (2) in paragraph (4)(B), by inserting ``and consistent with paragraph (2)(C)'' before the period at the end.

Section 514(f )(3) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by inserting after ``new owners)'' the following: ``, for technical assistance for preservation of low-income housing for which project-based rental assistance is provided at below market rent levels

and may not be renewed (including transfer of developments to tenant groups, nonprofit organizations, and public entities),''.

CONTRACT.

Section 8(c)(8) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(8)) is amended-- (1) in subparagraph (A)-- (A) by striking ``terminating'' and inserting ``termination of''; and (B) by striking the third comma of the first sentence and all that follows through the end of the subparagraph and inserting the following: ``. The notice shall also include a statement that, if the Congress makes funds available, the owner and the Secretary may agree to a renewal of the contract, thus avoiding termination, and that in the event of termination the Department of Housing and Urban Development will provide tenant-based rental assistance to all eligible residents, enabling them to choose the place they wish to rent, which is likely to include the dwelling unit in which they currently reside. Any contract covered by this paragraph that is renewed may be renewed for a period of up to 1 year or any number or years, with payments subject to the availability of appropriations for any year.''; (2) by striking subparagraph (B); (3) in subparagraph (C)-- (A) by striking the first sentence; (B) by striking ``in the immediately preceding sentence''; (C) by striking ``180-day'' each place it appears; (D) by striking ``such period'' and inserting ``1 year''; and (E) by striking ``180 days'' and inserting ``1 year''; and (4) by redesignating subparagraphs (C), (D), and (E), as amended by the preceding provisions of this subsection, as subparagraphs (B), (C), and (D), respectively.

ENHANCED VOUCHERS.

Section 201 of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z-1a) is amended by adding at the end the following new subsection: ``(p) Enhanced Voucher Eligibility.--Notwithstanding any other provision of law, any project that receives or has received assistance under this section and which is the subject of a transaction under which the project is preserved as affordable housing, as determined by the Secretary, shall be considered eligible low-income housing under section 229 of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4119) for purposes of eligibility of residents of such project for enhanced voucher assistance provided under section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)) (pursuant to section 223(f ) of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4113(f ))).''.

Section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (12 U.S.C. 1715z-11a) is amended-- (1) by striking ``and 1999'' and inserting ``1999, and 2000''; and (2) by striking ``or demolition'' and inserting ``, demolition, or construction on the properties (which shall be eligible whether vacant or occupied)''.

(a) In General.--Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) is amended by inserting after subsection (s) the following new subsection: ``(t) Enhanced Vouchers.-- ``(1) In general.--Enhanced voucher assistance under this subsection for a family shall be voucher assistance under subsection (o), except that under such enhanced voucher assistance-- ``(A) subject only to subparagraph (D), the assisted family shall pay as rent no less than the amount the family was paying on the date of the eligibility event for the project in which the family was residing on such date; ``(B) during any period that the assisted family continues residing in the same project in which the family was residing on the date of the eligibility event for the project, if the rent for the dwelling unit of the family in such project exceeds the applicable payment standard established pursuant to subsection (o) for the unit, the amount of rental assistance provided on behalf of the family shall be determined using a payment standard that is equal to the rent for the dwelling unit (as such rent may be increased from time- to-time), subject to paragraph (10)(A) of subsection (o); ``(C) subparagraph (B) of this paragraph shall not apply and the payment standard for the dwelling unit occupied by the family shall be determined in accordance with subsection (o) if-- ``(i) the assisted family moves, at any time, from such project; or ``(ii) the voucher is made available for use by any family other than the original family on behalf of whom the voucher was provided; and ``(D) if the income of the assisted family declines to a significant extent, the percentage of income paid by the family for rent shall not exceed the greater of 30 percent or the percentage of income paid at the time of the eligibility event for the project. ``(2) Eligibility event.--For purposes of this subsection, the term `eligibility event' means, with respect to a multifamily housing project, the prepayment of the mortgage on such housing project, the voluntary termination of the insurance contract for the mortgage for such housing project, the termination or expiration of the contract for rental assistance under section 8 of the United States Housing Act of 1937 for such housing project, or the transaction under which the project is preserved as affordable housing, that, under paragraphs

(3) and (4) of section 515(c), section 524(d) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), section 223(f ) of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4113(f )), or section 201(p) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z-1a(p)), results in tenants in such housing project being eligible for enhanced voucher assistance under this subsection. ``(3) Treatment of enhanced vouchers provided under other authority.-- ``(A) In general.--Notwithstanding any other provision of law, any enhanced voucher assistance provided under any authority specified in subparagraph (B) shall (regardless of the date that the amounts for providing such assistance were made available) be treated, and subject to the same requirements, as enhanced voucher assistance under this subsection. ``(B) Identification of other authority.--The authority specified in this subparagraph is the authority under-- ``(i) the 10th, 11th, and 12th provisos under the `Preserving Existing Housing Investment' account in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (Public Law 104-204; 110 Stat. 2884), pursuant to such provisos, the first proviso under the `Housing Certificate Fund' account in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 (Public Law 105-65; 111 Stat. 1351), or the first proviso under the `Housing Certificate Fund' account in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1999 (Public Law 105-276; 112 Stat. 2469); and ``(ii) paragraphs (3) and (4) of section 515(c) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), as in effect before the enactment of this Act. ``(4) Authorization of appropriations.--There are authorized to be appropriated for each of fiscal years 2000, 2001, 2002, 2003, and 2004 such sums as may be necessary for enhanced voucher assistance under this subsection.''.

(b) Enhanced Vouchers Under MAHRAA.--Section 515(c) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by striking paragraph (4) and inserting the following new paragraph: ``(4) Assistance through enhanced vouchers.--In the case of any family described in paragraph (3) that resides in a project described in section 512(2)(B), the tenant-based assistance provided shall be enhanced voucher assistance under section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)).''.

(c) Enhanced Vouchers For Certain Tenants in Prepayment and Voluntary Termination Properties.--Section 223 of

the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4113) is amended by adding at the end the following new subsection: ``(f ) Enhanced Voucher Assistance for Certain Tenants.-- ``(1) Authority.--In lieu of benefits under subsections (b), (c), and (d), and subject to the availability of appropriated amounts, each family described in paragraph (2) shall be offered enhanced voucher assistance under section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)). ``(2) Eligible families.--A family described in this paragraph is a family that is-- ``(A)(i) a low-income family; or ``(ii) a moderate-income family that is: (I) an elderly family; (II) a disabled family; or (III) residing in a low-vacancy area; and ``(B) residing in eligible low-income housing on the date of the prepayment of the mortgage or voluntary termination of the insurance contract.''.

This Act may be cited as the ``Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 2000''.

Approved October 20, 1999.

LEGISLATIVE HISTORY--H.R. 2684 (S. 1596): ---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 106-286 (Comm. on Appropriations) and 106-379 (Comm. of Conference). SENATE REPORTS: No. 106-161 accompanying S. 1596 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 145 (1999): Sept. 8, 9, considered and passed House. Sept. 22-24, considered and passed Senate, amended, in lieu of S. 1596. Oct. 14, House agreed to conference report. Senate considered conference report. Oct. 15, Senate agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 35 (1999): Oct. 20, Presidential remarks and statement.

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