Housing and Community Development Act of 1987

(Senate agreed to House amendments with an amendment) Housing and Community Development Act of 1987 - Title I: Housing Assistance - Subtitle A: Programs Under United States Housing Act of 1937 - Part I: General Provisions - Amends the United States Housing Act of 1937 to increase FY 1988 and 1989 budget authority for lower income housing programs. Sets forth FY 1988 and 1989 budget amounts for the following programs: (1) public housing, including Indian housing; (2) comprehensive improvement assistance program; (3) elderly and handicapped program; (4) moderate rehabilitation program; (5) loan management program; (6) property disposition program; and (7) section 8 certificate and voucher programs. Permits public housing agencies (PHAs) to establish three-year rent limitations. Exempts housing administered by an Indian PHA from such provision. Directs the Comptroller General to report to the Congress by October 30, 1988, regarding public housing utility allowances. Directs the Secretary of Housing and Urban Development (Secretary) to establish different income eligibility limitations for different assisted housing programs, provided that such limitations when aggregated achieve the requirement that 95 percent of such housing go to very low-income households. Waives such aggregate percentage: (1) if necessary to avoid rental displacement; and (2) with regard to Indian housing. Part 2: Public Housing - Amends the United States Housing Act of 1937 to authorize PHAs to admit persons between 50 years old and 62 years old (near elderly) into elderly public housing when there is an insufficient number of elderly persons for such units. Authorizes grants for public housing and Indian housing construction and development. Limits, as of October 1, 1987, the financing of new public housing units to PHAs that can certify: (1) that 85 percent of their existing units are maintained in compliance with section 8 quality standards, or will be in such condition upon completion; (2) that the construction will replace disposed of or demolished units, or is required by court order or by the Secretary; and (3) that demands for family housing exceed rental assistance program capacity. Prohibits the Secretary from recapturing public housing reservation funds for 30 months following the date of reservation, due to the failure of a PHA to complete acquisition and begin construction or rehabilitation. Permits a PHA to make site or project changes during such period as long as such changes will not result in fewer units acquired, constructed, or rehabilitated. Extends such period for delays caused by: (1) the Secretary; (2) environmental review; (3) legal action; or (4) factors beyond the PHA's control. Prohibits the Secretary from using as a criterion for distributing public housing development funds an Indian PHA's rent collection improvement, unless it is one of several other selection criteria. Authorizes Department of Housing and Urban Development (HUD) new construction in the neighborhood where the PHA determines such housing is needed. Authorizes grants for public housing child care. Requires the Secretary to report to the Congress within three years of enactment of this Act. Authorizes FY 1988 and 1989 appropriations. Directs the Secretary to provide payments for operating lower income housing projects through a performance funding system that establishes standards for operating costs and income projections. Authorizes FY 1988 and 1989 appropriations. Authorizes grants for comprehensive improvement assistance. Revises the conditions of approval for project demolition applications to include requirements of: (1) one-for-one replacement unless there is no local need for low-income housing; (2) tenant relocation payment; and (3) section 8-based or alternative-based subsidies if other necessary funding is unavailable. Permits public housing residents to form resident management corporations. Requires such corporations to obtain fidelity bonding and insurance and have their records audited annually. Authorizes such projects to receive comprehensive improvement assistance. Provides for: (1) retention of excess revenues; and (2) resident management technical assistance and training. Limits financial assistance to: (1) $100,000 for any particular project; and (2) $2,500,000 for the total program for each of FY 1988 and 1989. Requires the Secretary to submit a program report to the Congress within three years of enactment of this Act. Provides lower income public housing residents with the opportunity to purchase project dwelling units through a qualifying resident management corporation. Requires, as conditions for resident ownership, that: (1) a resident management corporation be formed; (2) the corporation has entered into a contract with the PHA; and (3) the corporation has demonstrated its managerial ability for at least three years. Authorizes the Secretary to provide comprehensive improvement assistance to a project undergoing resident ownership activities through FY 1989. Sets forth purchase conditions, including: (1) PHA public hearings; (2) safety and livability determinations; and (3) PHA certification of sold unit replacement if justified by local low-income housing needs. Sets forth resale conditions, including: (1) permitted resale only to the resident management corporation, PHA, or other eligible low-income family; and (2) family priorities. Requires that sale or recapture proceeds be used only to increase the number of available units. Permits PHA financing if no other source is available. Sets the interest rate at not less than 70 percent of the conventional mortgage rate. Requires HUD to continue to pay annual assistance to the project. Eliminates operating subsidies for a purchased building. Sets forth the following protection for nonpurchasing families: (1) eviction prohibition; (2) tenants' rights; and (3) rental and relocation assistance. Directs the Secretary to: (1) provide PHAs with the necessary financial assistance to carry out such ownership program; and (2) report annually to the Congress. Forgives interest on a public housing development project for the Housing Authority of the City of Pittsburgh, Pennsylvania. Forgives certain penalties incurred with the public housing development grant for the Bay City Housing Commission, Michigan. Authorizes specified funds from FY 1988 public housing development budget authority to build and test a variety of public housing energy efficient housing designs in 100 separate housing units in four different States. Establishes a public housing comprehensive transition demonstration program in Charlotte, North Carolina (authorizes up to ten additional program sites) to demonstrate the effectiveness of providing comprehensive services to public housing tenants to ensure their transition to private housing. Sets up such program with a two-year remediation phase and a five-year transition phase (including a full-time employment requirement). Requires the Secretary to submit an interim and final report to the Congress. Terminates such program seven years after enactment of this Act. Part 3: Section 8 Assistance and Other Programs - Amends the United States Housing Act of 1937 to require section 8 annual contribution contracts for existing housing to provide for a specific number of certificates and vouchers over a specified period. Requires annual October 1 adjustments of section 8 fair market rentals. Requires separate fair market rentals for Westchester County in the State of New York. Prohibits the reduction of certain section 8 contract rents unless the project has been refinanced in a manner that reduces the debt of the owner. Repeals the requirement that section 8 rent increases be based only on increased operating costs. Authorizes annual housing voucher adjustments. Authorizes unlimited voucher use for cooperative or mutual housing. Authorizes the Secretary to set aside up to five percent of authorized voucher funds for an annual adjustment pool to be used to maintain continued housing affordability. Sets forth administrative fee provisions for section 8 certificate and voucher programs. Provides for the portability of section 8 certificates and vouchers if the dwelling unit is within the same or contiguous metropolitan statistical area as the unit from which the family moved. Prohibits PHAs from denying section 8 certificates and vouchers to public housing residents. Prohibits private owners with section 8-assisted multifamily housing projects (at least five units) from refusing to lease any available dwelling units at the fair market rental to a section 8 certificate or voucher holder. Permits PHAs to use up to 15 percent of section 8 assistance for project-based assistance. Provides section 8 assistance for: (1) physically-displaced residents of rental rehabilitation projects; and (2) at the discretion of the local government, residents of such projects whose post-rehabilitation rent would exceed 30 percent of their adjusted monthly income. Authorizes FY 1988 and 1989 appropriations for: (1) rental rehabilitation grants; and (2) development grants. Sets rehabilitation grant limits at: (1) $5,000 per efficiency unit; (2) $6,500 for one bedroom units; (3) $7,500 for two bedroom units; and (4) $8,500 for three or more bedroom units. Permits such grants to be used for seismic standards compliance where applicable. States that development grant eligibility requirements shall be those that were in effect as of October 17, 1986. Terminates the rental development grant program as of October 1, 1989. Subtitle B: Other Housing Assistance Programs - Amends the Housing Act of 1959 to authorize FY 1988 and 1989 appropriations for elderly and handicapped housing loans. Bases interest rates on the most recently issued 30-year Treasury obligations. Amends the Housing and Urban-Rural Recovery Act of 1983 to limit interest rates on elderly and handicapped housing loans to 9.25 percent. (Currently such limit applies only to FY 1983 and 1984 loans). Requires the Secretary to notify a project sponsor at least 30 days prior to loan cancellation. Permits sponsor appeals. Gives loan priority through FY 1988 to projects providing replacement housing for 100-unit or more projects used for the elderly and scheduled for demolition. Requires that at least 15 percent of annual appropriations, beginning in FY 1988, for elderly or handicapped housing be allocated for handicapped families' housing. Directs the Secretary to establish new housing and related services for nonelderly handicapped families. Terminates section 8 assistance in handicapped projects where contract funds are appropriated under the housing for handicapped families program. Amends the Congregate Housing Services Act of 1978 to authorize appropriations for congregate services through FY 1989. Directs the Secretary to contract for a report due to the Congress by September 30, 1989, which will: (1) document the number of elderly persons living in federally assisted housing at risk of institutionalization; (2) compare alternative congregate services delivery systems; and (3) assess the availability of Federal, State, and local financial support. Amends the Housing and Community Development Act of 1980 to exempt from HUD regulations limiting alien eligibility for public housing alien families whose head or spouse is a citizen, legal alien resident, or alien undergoing legalization. Exempts persons 62 years or older from related documentation requirements. Requires the Secretary to provide written notice and a hearing opportunity before denying or terminating assistance. Directs HUD to: (1) develop a system for verifying immigration status; and (2) reimburse PHAs for such related costs. Exempts State and local government from liability for the design and implementation of the Federal alien verification system if the implementation is in accordance with Federal regulations. Authorizes the Secretary to require HUD program participants or applicants to disclose their social security or employer identification numbers. Directs the Secretary to include in his annual section 8 report a report on the characteristics of families assisted under specified housing programs. Amends the National Housing Act to increase Federal funding from 90 percent to 100 percent for State-financed rental assistance. Amends the Housing and Urban Development Act of 1965 to provide similar increases for supplemental rental assistance payments. Amends the Housing and Urban Development Act of 1968 to: (1) authorize FY 1988 and 1989 appropriations for housing counseling; and (2) authorize grants, and FY 1988 and 1989 appropriations, for homeownership counseling organizations. Subtitle C: Multifamily Housing Management and Preservation - Amends the Housing and Community Development Amendments of 1978 to require the Secretary to manage or dispose of HUD-owned multifamily housing projects in a manner consistent with specified goals, including as an objective the preservation of affordable low- and moderate-income housing. Brings within the framework of the Secretary's authority HUD-owned multifamily housing projects subject to a HUD-owned mortgage that is delinquent, under a workout agreement, or being foreclosed. Describes HUD's obligations with respect to management services and maintenance in connection with HUD-owned or HUD-controlled multifamily projects. Requires owners of such projects that are not under HUD control to meet the same obligations. Directs the Secretary to provide financial assistance to owners of multifamily projects acquired at foreclosure or after a HUD sale by providing at least one of the following: (1) project-based section 8 contracts covering 15 years or more; or (2) purchase-money mortgages, a reduced sales price, or other assistance to ensure the availability and affordability of the housing for low-and moderate-income persons for at least 15 years. Grants to State and local governments the right of first refusal with respect to HUD-owned multifamily projects when HUD receives a bona fide purchase offer. Applies displacement protection to tenants of multifamily projects controlled by HUD (current provisions cover only HUD-owned projects). Requires owners of non-HUD projects to provide the same protections. Limits HUD authority to approve the sale of certain projects, loans, and mortgages. Permits negotiated sales of subsidized or formerly subsidized mortgages to agencies of State and local government. Requires the Secretary to consider as a factor in determining bids on multifamily housing projects the goal of preserving low-income housing. Broadens specified assisted housing tenant participation provisions. Establishes a three-year program to demonstrate the effectiveness of disposing of HUD-owned distressed multifamily housing projects through a partnership with State housing finance agencies. Authorizes the Secretary to make direct loans to assist onwers of multifamily housing in making capital improvements to maintain the projects as decent, safe, and sanitary housing. Establishes in the Treasury a Flexible Subsidy Fund, a revolving fund to finance operating assistance for troubled multifamily housing projects, including capital improvement aid. Limits fiscal year fund expenditures for capital improvements to $50,000,000. Describes conditions to govern capital improvement loans. Amends the National Housing Act and the Housing and Community Development Amendments of 1978 with respect to flexible subsidies to owners of troubled multifamily housing projects to: (1) permit the Secretary to use certain excess rental charges to assist troubled multifamily housing projects through FY 1989 (current law terminates such authority after September 30, 1985); and (2) expand the program to include certain elderly and handicapped projects. Title II: Preservation of Low Income Housing - Subtitle A: General Provisions - Emergency Low Income Housing Preservation Act of 1987 - Expresses this title's purposes: (1) the preservation as affordable housing for low-income families privately-owned dwelling units produced with Federal assistance; (2) the minimization of the involuntary displacement of current tenants; and (3) the continuation of the partnership between government and the private sector in the production and operation of affordable low-income housing. Repeals, two years after enactment of this Act, subtitles relating to: (1) the prepayment of mortgages insured under the National Housing Act; and (2) certain other measures to preserve low income housing. Subtitle B: Prepayment of Mortgages Insured Under National Act - Permits an owner of eligible low-income housing to prepay a mortgage on such housing only in accordance with a plan approved by the Secretary. Presents required procedures, contents, and approval criteria with respect to the plan of action. Authorizes the Secretary to include incentives to retain or extend low income use. Permits approval of a plan that entails the termination of the low-income affordability restrictions only upon findings that such action would not have adverse effects on job and housing availability. Permits approval of a plan that includes incentives only upon findings that the incentives fulfill certain economic criteria and that binding commitments have been made to ensure that specified availability, affordability, maintenance, and rent level standards will be met. Authorizes the Secretary to approve a practicable statewide strategy presented in a plan offered by a State. Lists criteria. Allows an owner who has entered into an agreement to extend low-income affordability restrictions to convert to a different system of incentives and restrictions during the four-year period following this Act's enactment. Amends the National Housing Act to empower the Secretary to insure loans or credit advances made by financial institutions to owners of eligible low-income multifamily housing for the purpose of implementing an approved plan of action. Includes as eligible owners qualified nonprofit organizations and limited equity tenant cooperative corporations. Lists the qualifying characteristics of equity loans for purposes of the progam. Prohibits a mortgage approved by the Secretary form withholding consent to an equity loan on a relevant property. Sets forth reporting and regulation requirements applicable to this subtitle. Subtitle C: Rural Rental Housing Displacement Prevention - Amends the Housing Act of 1949 to direct the Secretary, before accepting a borrower's request to prepay a rural housing loan entered into before December 21, 1979, to make reasonable efforts with the borrower to extend such low-income housing use for at least 20 years. Includes the following among the incentives for such agreements: (1) investment rate increases; (2) interest rate reductions; and (3) rental increases. Provides that if an agreement cannot be reached the Secretary shall require the borrower to offer to sell such housing to a qualified nonprofit organization or public agency. Directs the Secretary to the extent provided for by appropriations, to provide a purchasing entity with financial assistance in the form of debt forgiveness or monthly payments. Limits subsequent transfers. Exempts prepayment requests form such restrictions under specified conditions relating to adequate existing stocks of low income housing. Authorizes appropriations for related reimbursement of the Rural Housing Insurance Fund. Limits transfers to not more than 5,000 dwelling units per fiscal year. Subtitle D: Other Measures to Preserve Low Income Housing - Amends the United States Housing Act of 1937 to require: (1) owners to notify the Secretary and the tenants not less than one year prior to terminating a section 8 contract (not less than 90 days in the case of housing certificates or vouchers); (2) the Secretary to review such notice and consider other actions in order to avoid such termination. Requires 180-month terms for section 8 loan management and property disposition contracts. Amends the Housing Act of 1949 to permit rural rental housing initial operating reserves to be in the form of irrevocable letters of credit. Title III: Rural Housing - Amends the Housing Act of 1949 to extend rural housing insurance and guaranty authority through FY 1989. Sets forth specified limits on such authority for FY 1988 and 1989. Authorizes FY 1988 and 1989 appropriations for: (1) rural housing improvements; (2) structural rehabilitation; (3) the meeting of obligations issued under the rural housing insurance fund; (4) farm labor housing; (5) self-help housing; and (6) housing preservation. Authorizes the Secretary, subject to FY 1988 and 1989 appropriations, to enter into: (1) rental assistance payment contracts; and (2) five-year supplemental rental assistance contracts. Extends through FY 1989: (1) rental housing loan authority; and (2) mutual and self-help housing grant and loan authority. Directs the Secretary of Agriculture, subject to appropriations, to carry out a FY 1988 and 1989 demonstration rural housing voucher program. Funds such program through the Rural Housing Insurance Fund. Provides that maximum income eligibility levels for Farmers Home Administration (FmHA) housing in the Virgin Islands not be less than maximum levels for other U.S. territories. Prohibits the Secretary of Agriculture from restricting rural housing assistance to any alien for whom assistance may not be restricted under section 214 (restriction on the use of assisted housing) of the Housing and Community Development Act of 1980. Provides for rural housing tax and insurance escrow accounts. Directs the Secretary of Agriculture, subject to appropriations, to carry out a moderate income rural housing guaranteed loan demonstration program. Requires an interim and a final program report to the Congress. Terminates the program as of September 30, 1991. Amends the Housing Act of 1949 to redefine "domestic farm labor". Restricts occupancy in rural housing for elderly or handicapped projects to persons whose incomes conform with low-income tax credit eligibility requirements under the Internal Revenue Code, unless the Secretary determines that vacancies threaten the project's financial viability. Prohibits fees other than late fees on rural rental housing loans. Extends the 10,000-20,000 population rural area classification date to September 30, 1989. Makes Pajaro, California, eligible for rural area designation. Directs the Secretary to: (1) carry out a rural rehabilitation demonstration program through FY 1989; and (2) submit a program report to the Congress. Directs the Secretary to: (1) conduct a study of rural mortgage credit; and (2) report to the Congress by April 1, 1988. Makes loans for manufactured homes on permanent foundations repayable over the same period as specified mortgaged loans under the National Housing Act. Title IV: Mortgage Insurance and Secondary Mortgage Market Programs - Subtitle A: FHA Mortgage Insurance Programs - Amends the National Housing Act to extend authority permanently for: (1) general mortgage insurance; (2) low and moderate income and displaced families mortgage insurance; (3) mortgage co-insurance, including rental rehabilitation and development projects; (4) graduated payment and indexed mortgage insurance; (5) mortgage insurance for armed forces civilian employees and defense housing for impacted areas; (6) mortgage insurance for land development; and (7) mortgage insurance for medical and dental group practice facilities. Terminates the home ownership assistance program on October 1, 1989. Provides specified amounts for FY 1988 and 1989 Federal Housing Administration (FHA) mortgage insurance commitments. Limits the mortgage insurance premiums secured by one to four family dwellings to 3.8 percent of the principal obligation. Increases the maximum single family mortgage amount from 133 1/3 percent to 150 percent of the prevailing home sales price. Amends the definition of veteran, for specified mortgage insurance purposes, to require that persons who enlisted in the armed forces after September 7, 1980, or who entered active duty after October 16, 1981, shall have their eligibility determined in accordance with specified Federal laws. Permits the Secretary to insure a mortgage secured by a one- to four-family dwelling, or approve of a substitute mortgagor who assumes any mortgage, only if the mortgagor is to occupy the dwelling as a principal or secondary residence. Excludes certain public and private nonprofit investors from the occupancy requirement. Specifies certain actions which the Secretary must take to reduce losses under the single family mortgage insurance program. Extends refinancing insurance authority to cover nursing homes, intermediate care facilities, and board and care homes. Provides that if the State agency is not empowered to certify the need for a nursing home, intermediate care facility, board and care home, or hospital, then the Secretary shall accept in lieu of certification a feasibility study which demonstrates such need. Requires State approval, or an independent certification of need, for hospital mortgage insurance. Transfers mortgage insurance programs for Hawaiian homelands and Indian lands from the Mutual Mortgage Insurance Fund to the General Insurance Fund of the Treasury. Permits Native Hawaiians to transfer FHA-financed property to their children or surviving spouses who do not meet the legal definition of native Hawaiians. Repeals the requirement that the Secretary consult with the mortgage lending industry to determine that co-insurance will not disrupt the mortgage market. Increases from ten to 30 percent of the aggregate number of insured mortgages and loans for the preceding fiscal year the ceiling on the aggregate number of such insured mortgages and loans for any particular fiscal year. Raises the fine for equity skimming from $5,000 to $250,000, and the possible prison sentence from a maximum of three years to a maximum of five years. Subjects skimming on cooperatives and condominiums to such penalties. Revises the definition of one kind of equity skimming practice to mean failing to make payments under the mortgage or deed of trust as the payments become due, regardless of whether the purchaser is obligated on the loan. Authorizes the Secretary to conduct a demonstration progam of insurance of home equity conversion mortgages of elderly homeowners through FY 1991. Limits the total number of such mortgages to 2,500. Requires reports and evaluations to be submitted to the Congress at specified times. Directs the Secretary to maintain at least one housing office in each State. Prohibits a lender from requiring a minimum principal loan amount. Directs the Secretary to complete a study, and report to the Congress within six months, concerning lending practices under such Act. Repeals the provision requiring the publication of certain prototype housing costs. Provides a double damages remedy for the unauthorized use of multifamily housing project assets and income. Requires (Federal law currently authorizes) the Secretary to provide mortgages for certain properties within Indian reservations. Defines "area" for purposes of calculating the FHA maximum mortgage amount as the higher of a county or a metropolitan statistical area established by the Office of Management and Budget. Permits the use of approved individual residential water purification units if the exiting water supply does not meet HUD standards. Directs the Secretary to continue to control rents in specified insured projects. Increases specified multifamily project mortgage limits, including projects in high-cost areas. Authorizes the Secretary to provide specified operating loss loan insurance programs. Provides for the release of specified pool funds to be used by State-assisted housing projects under the National Housing Act and the Housing and Urban Development Act of 1965. Subtitle B: Secondary Mortgage Market Programs - Prohibits (with specified exceptions) fees from being charged on: (1) Federal National Mortgage Association (FNMA) mortgages; and (2) Federal Home Loan Mortgage Corporation (FHLMC) mortgages. Extends Federal National Mortgage Association and Federal Home Loan Mortgage Corporation mortgage purchase authority permanently. Authorizes the elimination of the right of cumulative voting in the election of FNMA board members. Directs the Secretary to act within 45 days (with an allowable 15-day extension) on a FNMA request for approval of an action. Prohibits the FHLMC Board of Directors from imposing an annual limit on the maximum aggregate principal amount of mortgages purchased by FHLMC. Sets FY 1988 and 1989 limits on Government National Mortgage Association guarantees of mortgage-backed securities. Title V: Community Development and Miscellaneous Programs - Subtitle A: Community and Neighborhood Development and Preservation - Amends the Housing and Community Development Act of 1974 to authorize appropriations through FY 1989 for the community development block grant (CDBG) program, including a specified amount for the special discretionary fund. Makes specified amounts available for existing grant programs to minority graduate and undergraduate students in the areas of community development and planning. Authorizes appropriations through FY 1989 for the urban development action grant program (UDAG). Requires at least 60 percent of CDBG appropriations to be used for low and moderate income benefits. Extends CDBG entitlement authority for certain metropolitan city and urban county areas through FY 1989. Revises energy use requirements for CDBG purposes. Repeals the requirement that a CDBG recipient include in the review statement a final project use of funds provision. Permits CDBG funds to be used for Great Lakes flooding and erosion control to primarily benefit low and moderate income persons. Requires CDBG grantees to follow a citizen participation plan, including public hearings and technical assistance. Requires CDBG and UDAG grantees to follow a residential antidisplacement and relocation assistance plan. Permits CDBG funds to be used to develop and operate for up to two years a uniform emergency telephone number system. Prohibits a State from deducting administrative expenses from distribution amounts in entitlement areas in excess of the sum of $100,000 ($102,000 under current law) plus 50 percent of a State's administrative expenses above $100,000. Authorizes FY 1988 and 1989 CDBG loan guarantee limits. Prohibits loan guarantee fees. Includes within the eligible uses of such guarantees housing rehabilitation and certain economic development activities. Modifies UDAG selection criteria. Requires the Comptroller General to report to the Congress every three years (the first report due within one year of enactment of this Act). Repeals the urban county competition rule as of October 1, 1989. Limits individual project grants to $10,000,000 for FY 1988 and 1989. Considers the counties of Kauai, Maui, and Hawaii in the State of Hawaii as cities for UDAG purposes. Prohibits relocating a business from one UDAG area to another unless the Secretary determines that no adverse effect will result. Authorizes appropriations through FY 1989 for the urban homesteading program. Extends through FY 1989 authority to purchase tax foreclosed properties. Permits State or local governments to transfer property to qualified community organizations for homestead transfers. Extends through FY 1989 the multifamily homesteading demonstration program. Extends the reporting deadline until December 1, 1987. Cancels specified loan indebtedness under the Housing Act of 1964. Amends the Neighborhood Reinvestment Corporation Act to authorize appropriations for the Neighborhood Reinvestment Corporation through FY 1989. Modifies the composition of the Neighborhood Reinvestment Corporation Board to permit designated members rather than only the Chairmen of the Home Loan Bank Board, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, to be on such Board. Amends the Housing and Urban-Rural Recovery Act of 1983 to authorize appropriations for the neighborhood development demonstration program through FY 1989. Sets aside specified FY 1988 funds: (1) for residents of the Park Central New Community Project; and (2) from the Secretary's CDBG discretionary fund for such project. Subtitle B: Flood and Crime Insurance Programs - Amends the National Flood Insurance Act of 1968 to extend authority through FY 1989 for national flood insurance, including emergency implementation and flood-risk zones. Limits premium increases to ten percent annually through FY 1989. Amends the National Housing Act to extend authority through FY 1989 for crime insurance. Continues existing contracts through FY 1990. Limits premium increases to five percent annually through FY 1989. Authorizes FY 1988 and 1989 appropriations for flood insurance studies. Makes eligible for flood insurance certain property covered by flood insurance located along a lake shore or other body of water that is subject to imminent collapse due to erosion caused by excessive water levels or waves. Excepts certain property in Suffolk County, New York, from such provisions. Limits payments to commitments made through FY 1989. Subtitle C: Miscellaneous Programs - Authorizes a fair housing initiatives program. Authorizes FY 1988 and 1989 appropriations. Sets forth program provisions. Directs the Secretary of Housing and Urban Development and the Secretary of Agriculture to collect at least annually data on the racial and ethnic characteristics of persons eligible for or benefiting under each community development, housing assistance, and mortgage and loan insurance and guarantee program the Secretary administers. Amends the Housing and Urban Development Act of 1970 to authorize FY 1988 and 1989 appropriations for housing research and development. Amends the Home Mortgage Disclosure Act of 1975 to make mortgage disclosure authority permanent. Amends the Lead-Based Paint Prevention Act to require mortgagees to provide purchasers of 1978 or prior constructed homes with lead-based paint information. Directs the National Institute of Building Sciences and HUD to develop such information. Sets forth inspection criteria, including a requirement that all housing subject to inspection be inspected within five years. Directs the Secretary to: (1) carry out a lead paint abatement demonstration program in HUD housing; and (2) report to the Congress within nine months of completion of such program. Amends the National Manufactured Housing Construction and Safety Standards Act of 1974 to require HUD manufactured housing construction and safety standards to: (1) include cost effective energy conservation standards; (2) take into consideration design and factory construction techniques; and (3) provide for alternative energy consumption practices. Amends the National Housing Act to nullify the right of redemption in a foreclosure sale in connection with a HUD-held single-family mortgage. Directs the Secretary to encourage the use of American products and materials in administering housing assistance. Directs the National Institute of Building Sciences to: (1) carry out a study of voluntary standards for modular homes; and (2) report to the Congress within six months of enactment of this Act regarding implementing voluntary national codes for modular housing. Obligates specified funds from the Housing and Urban Development Act of 1970 for such purposes. Title VI: Nehemiah Housing Opportunity Grants - Authorizes the Secretary to make grants to nonprofit organizations for noninterest bearing second mortgages for new or rehabilitated homes. Sets maximum loans at $15,000. Requires at least a ten percent downpayment. Prohibits leasing. Makes such loans repayable to the Secretary upon the sale, lease, or transfer of the property. Requires an eligible family to: (1) have an income not in excess of the greater of the local metropolitan median income for a family of four, or the national median income for a family of four; and (2) not have owned a home within three years. Sets forth criteria for: (1) grant selection; and (2) assistance conditions. Establishes in the Treasury the Nehemiah Housing Opportunity Fund. Requires a report to the Congress by March 1, 1990. Authorizes FY 1988 and 1989 appropriations. Title VII: Enterprise Zone Development - Authorizes the Secretary to designate up to 100 enterprise zones (to be identified by State and local authorities, or Indian reservation governing bodies) to provide economic revitalization, job creation, and community development. Requires a specified number of rural designations. Sets forth area and eligibility requirements. Prohibits business relocation assistance. Requires reports to the Congress every four years. Authorizes the waiver or modification of housing and community development rules in enterprise zones. Provides for the coordination of community development block grant, urban development action grant, and other HUD programs in such zones.

(Measure passed Senate, amended, roll call #49 (71-27)) Housing and Community Development Act of 1987 - Title I: Program Extensions and Amendments - Subtitle A: General Extension of Programs - Amends the National Housing Act to make authority permanent for: (1) title I financial institution insurance for housing renovation and modernization; (2) general mortgage insurance; (3) low and moderate income and displaced families mortgage insurance; (4) mortgage co-insurance including rental rehabilitation and development projects; (5) graduated payment and indexed mortgage insurance; (6) mortgage insurance for armed forces civilian employees and defense housing for impacted areas; (7) mortgage insurance for land development; and (8) mortgage insurance for medical and dental group practice facilities. Amends the National Flood Insurance Act of 1968 to extend authority for national flood insurance, including emergency implementation and flood-risk zones through September 30, 1989. Limits premium increases through such period to not more than a prorated annual amount of ten percent. Postpones implementation of the Federal Emergency Management Agency's (FEMA) flood plain management regulations for 60 days. Requires a FEMA small business impact report to the Congress during such period. Amends the Housing and Urban Rural Recovery Act of 1983 to extend indefinitely the maximum interest rate limitation on loans for housing and related facilities for elderly or handicapped families. Extends the Home Mortgage Disclosure Act of 1975 permanently. Amends the Housing Act of 1964 to extend urban rehabilitation loan authority through September 30, 1989. Amends the Housing Act of 1949 to extend Farmers Home Administration authority through September 30, 1989, for: (1) insured loans for rental and cooperative housing and related facilities for elderly persons and families in rural areas; and (2) mutual and self-help housing grant and loan authority. Subtitle B: Mortgage Insurance and Secondary Mortgage Programs - Amends the National Housing Act to set premium charge limits for Federal Housing Administration (FHA) mortgage insurance. Requires the Secretary of Housing and Urban Development to certify to the Congress 90 days prior to any fee increase that such increase is solely for the purpose of meeting anticipated insurance claims and administrative expenses. Raises FHA multi-family mortgage limits. Raises the high-cost area mortgage ceiling. Permits the refinancing of graduated payment mortgages for the total outstanding balance if refinancing would result in a lower monthly mortgage payment. Makes nursing homes, intermediate care facilities, and board and care homes eligible for health care facility refinancing mortgage insurance. Makes public nursing homes, intermediate care facilities, and board and care homes eligible for mortgage insurance. Provides, with regard to hospital mortgage insurance eligibility, that in States not having a certifying agency the required certification of need and feasibility may be provided through a State-conducted or commissioned independent study. Authorizes city and State housing authorities to use unexpended low-income rental and cooperative housing funds for interest and rental assistance payments if so agreed to by the housing authorities and the Department of Housing and Urban Development (HUD). Increases FHA authority to insure adjustable rate single-family mortgages. Prohibits the imposition of user fees on Government-sponored secondary mortgage market agencies. Amends the Federal National Mortgage Association Charter Act to permit the elimination of cumulative voting in the election of Federal National Mortgage Association (Fannie Mae) board members. Directs the Secretary to take appropriate administrative actions to reduce losses on mortgage insurance programs. Authorizes the Secretary to require mortgages and lenders to report the taxpayer identification numbers of National Housing Act borrowers. Requires mortgages with high default rates to submit reports, including proposed corrective steps, to the Secretary. Amends the National Housing Act to transfer mortgage insurance programs for Hawaiian homelands and Indian lands from the Mutual Mortgage Insurance Fund to the General Insurance Fund of the Treasury. Permits Native Hawaiians to transfer FHA-financed property to their children or surviving spouses who do not meet the legal definition of native Hawaiian. Provides applicants for National Housing Act property improvement or manufactured home loan insurance with the option, until January 1, 1988, of complying with either the regulations in effect prior to January 15, 1986, or the regulations published on October 25, 1985. Directs the Secretary to establish a demonstration program of home equity conversion mortgage insurance for elderly homeowners. Authorizes the Secretary to insure any home equity conversion mortgage eligible for insurance and to make insurance commitments to the extent the Secretary determines such mortgages: (1) have promise for improving the financial status or otherwise meeting the special needs of elderly homeowners; (2) will include appropriate risk safeguards for mortgagors; and (3) have acceptance potential in the private mortgage market. Sets forth provisions regarding: (1) eligibility; (2) disclosure; and (3) mortgagor information. Prohibits mortgages without a prior commitment from being insured after September 30, 1991. Limits: (1) the total number of insured mortgages to 2,500; and (2) insurance coverage to maximum one-family residence amounts under such Act. Prohibits the Secretary from insuring a home equity mortgage unless the mortgage defers repayment until the homeowner's death, sale of the house, or other occurrence as specified by the Secretary. Requires the Secretary to: (1) submit an interim program report to the Congress by September 30, 1989; (2) submit a preliminary program evaluation to the Congress by March 30, 1992, and biennial program reports thereafter; and (3) issue proposed implementing regulations. Amends the Federal National Mortgage Association Charter Act to permanently extend the authority of Fannie Mae to purchase residential second mortgages. Amends the Federal Home Loan Mortgage Corporation Act to permanently extend the authority of the Federal Home Loan Mortgage Corporation (Freddie Mac) to purchase residential second mortgages. Amends specified provisions of the National Housing Act regarding negotiated interest rates, including certain provisions regarding nursing home fire safety equipment. Amends the definition of veteran, for purposes of mortgage insurance and rehabilitation and neighborhood conservation housing insurance, to require that persons who enlisted in the armed forces after September 7, 1980, or who entered active duty after October 16, 1981, have their eligibility determined in accordance with specified Federal law. Repeals specified coinsurance provisions. Amends the Housing and Community Development Act of 1977 to repeal the requirement that HUD prepare annual prototype housing costs. States that any new credit authority provided by this Act shall be effective only to the extent that such amounts are approved in appropriation Acts. Subtitle C: Community and Neighborhood Development and Conservation Programs - Amends the Housing and Community Development Act of 1974 to extend community development block grant entitlement authority for certain metropolitan city and urban county areas through September 30, 1989. Reduces FY 1991 grants by 50 percent to any such entity that loses its entitlement classification, with the remaining 50 percent allocated to the small city community development program (for which such entity would be eligible). Gives cities becoming classified as metropolitan cities the option to defer such classification if they elect to have their population included in an urban county. Stipulates for FY 1988 that a city may elect not to retain its metropolitan city classification. Includes within the definition of urban county a county that has: (1) a combined population in excess of 175,000; (2) more than 50 percent of its housing units unsewered; and (3) a specified sole source acquifer. Extends through FY 1989 the transition classification of a designated urban county whose decreased population no longer entitles it to such designation. Defines the entire nonmetropolitan area of a State as the designated area for making community development block grant (CDBG) income determinations. Considers the counties of Kauai, Maui, and Hawaii in the State of Hawaii as cities for urban development action grant (UDAG) purposes. Authorizes UDAG appropriations through FY 1989. Modifies UDAG selection criteria so that: (1) 65 percent of such grants are awarded on the basis of distress, impact, and project quality and (2) 35 percent on project quality alone. Awards bonus points for certain cities that have not received a grant since October 15, 1984. Requires at least two rounds of UDAG grant competitions annually. Permits a city to retain any repaid UDAG funds. Requires the city to submit a plan to the Secretary for such funds' reuse. Prohibits the Secretary from discriminating against applications on the basis of the type of activity involved. Requires the Comptroller General to: (1) report to the Congress within six months, and every three years thereafter, regarding such selection criteria and eligibility standards; and (2) report to the Congress within three months of the final FY 1987 grant competition regarding targeting of grants, geographic distribution, funding levels, and economic development. Caps individual UDAG projects at $6,000,000 each, except in cases where a project would create or retain permanent jobs for less than the historical average of $8,000 in UDAG funds per job. Prohibits relocating a business from one UDAG area to another unless the Secretary determines that no significant and adverse effect will result. Requires the Secretary to provide a 90-day appeal period in the case of cancelled or denied assistance. States that nothing shall be construed to infer that congressional policy in the UDAG program is to facilitate business relocations from one area to another. Authorizes appropriations through FY 1989 for: (1) CDBG; and (2) urban homesteading. Extends the local property demonstration program through FY 1989. Extends the evaluation reporting date to December 31, 1989. Gives homesteading priority to lower income families. Permits States and local governments to operate the urban homesteading program through specified nonprofit community organizations. Amends the Housing Act of 1964 to prohibit risk premiums or loan fees under the rehabilitation loan program. Amends the Neighborhood Reinvestment Corporation Act to authorize appropriations for the Neighborhood Reinvestment Corporation through FY 1989. Modifies the composition of the Neighborhood Reinvestment Corporation Board to permit designated members rather than only the Chairmen of the Home Loan Bank Board, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, to be on such Board. Amends the Housing and Urban-Rural Recovery Act of 1983 to authorize appropriations for the neighborhood development demonstration program through FY 1989. Amends the Housing and Community Development Act of 1974 to prohibit a State from deducting administrative expenses from distribution amounts in entitlement areas in excess of the sum of $100,000 ($102,000 under current law) plus 50 percent of a State's administrative expenses above $100,000. Authorizes the City of Hartford, Connecticut, to retain and use certain land disposition proceeds from the financially closed-out Sheldon Charter Oak, Section A Urban Renewal Project (No. Conn. R. 77). Authorizes the City of Lebanon, Pennsylvania, to retain and use certain land disposition proceeds from the financially closed-out Southside Urban Renewal Project (R-635(C)). Authorizes CDGB funds to be used for uniform emergency telephone number systems if: (1) at least 51 percent of the potential users have low or moderate incomes; (2) the system will contribute substantially to the area residents' safety; and (3) other Federal funds are unavailable. Stipulates that the Federal contribution percentage may not exceed the percentage of the population to be served that is made up of low and moderate income people. Directs the Secretary to cancel the indebtedness of loan number 070024914 under section 312 of the Housing Act of 1965. Subtitle D: Miscellaneous Program Amendments - Amends the National Flood Insurance Act to authorize appropriations for flood insurance programs through FY 1989. Directs the Secretary and the Secretary of Agriculture to: (1) collect social and ethnic data on the participants of their respective housing and related programs; and (2) include such information in their annual reports to the Congress. Amends the Solar Energy and Energy Conservation Bank Act to authorize appropriations for residential and commercial solar energy improvement through FY 1989. Amends the Housing and Urban Development Act of 1970 to authorize appropriations for housing research and project development through FY 1989. Title II: Housing Assistance - Subtitle A: Programs Under United States Housing Act of 1937 - Amends the United States Housing Act of 1937 to authorize FY 1988 and 1989 budget authority for lower income housing. Prohibits the Secretary from issuing more than twice the number of section 8 vouchers as section 8 certificates issued in a fiscal year. Makes recaptured program funds for public housing development, comprehensive improvement assistance, or Indian housing available for reuse. Requires: (1) 15-year terms for annual contributions contracts for (section 8) existing dwellings; (2) administrative and preliminary fees to be calculated according to the method in effect prior to January 1, 1985; and (3) an annual adjustment of fair market rents as of October 1 of each year. Authorizes appropriations through FY 1989 for public housing authority (PHA) operating subsidies. Prohibits the Secretary from totally restricting public housing admissions to very-low income families. Provides a displacement exemption for low-income families. Authorizes appropriations through FY 1989 for the rental rehabilitation and development program. Extends eligibility to housing which is owned by State or locally chartered neighborhood nonprofit organizations. Sets rehabilitation assistance caps at $7,500 per unit for units with up to two bedrooms and $8,500 per unit for units with three or more bedrooms (current cap is $5,000 per unit). Gives grantees the option of basing their assisted housing rent on recent median area income or on such income at the time of the grantee's project application. Authorizes the Secretary to require HUD applicants or participants to provide social security or employer identification numbers in order to verify eligibility. Amends the Social Security Act to provide HUD with access to State wage or unemployment compensation records. Limits the use of such information to housing eligibility purposes. Sets forth applicant and participant protections. Imposes a criminal penalty for the wrongful request or disclosure of such information. Amends the United States Housing Act of 1937 to permit public housing residents to form resident management corporations. Requires such corporations to obtain fidelity bonding and insurance and have their records audited annually. Authorizes such projects to receive comprehensive improvement assistance. Provides for: (1) retention of excess revenues; and (2) resident management technical assistance and training. Limits financial assistance to: (1) $100,000 for any particular project; and (2) $1,500,000 for the total program. Provides lower income public housing residents with the opportunity to purchase project dwelling units through a qualifying resident management corporation. Requires, as conditions for resident ownership, that: (1) a resident management corporation be formed; (2) the corporation has entered into a contract with the PHA; and (3) the corporation has demonstrated its managerial ability for at least three years. Authorizes the Secretary to provide comprehensive improvement assistance to a project undergoing resident ownership activities. Sets forth purchase conditions, including: (1) PHA public hearings; (2) safety and livability determinations; and (3) PHA certification of sold unit replacement if justified by local low-income housing needs. Sets forth resale conditions, including: (1) permitted resale only to the resident management corporation, PHA, or other eligible low-income family; and (2) recapture of profit for any unit resold within five years. Requires that sale or recapture proceeds be used only to increase the number of available units. Permits PHA financing if no other source is available. Sets the interest rate at not less than 70 percent of the conventional mortgage rate. Requires HUD to continue to pay annual assistance to the project. Eliminates operating subsidies for a purchased building. Sets forth the following protection for nonpurchasing families: (1) eviction prohibition; (2) tenants' rights; (3) and rental and relocation assistance. Directs the Secretary to: (1) provide PHAs with the necessary financial assistance to carry out such ownership program; and (2) report annually to the Congress. States that after September 30, 1987, the Secretary shall reserve public housing funds only if: (1) funds are needed to complete units whose funding is already obligated; (2) at least 85 percent of the units meet, or will meet, HUD standards; (3) development is needed to replace disposed units or to comply with court orders or the Secretary's directions; or (4) the locality has demand for family housing that the PHA plans to meet with the development of not more than 100 units. Permits up to 20 percent of public housing development funds to be used for redesign or reconstruction of existing projects. Sets forth the findings of the Congress regarding the problems of substandard public housing and the need to reform the comprehensive grant program in order to provide stable assistance and capital and managerial improvements. Directs the Secretary, within one year of enactment of this Act, to: (1) complete the HUD public housing modernization study, and any other related studies; and (2) submit to the Congress specified funding allocation determinations. Revises the definition of "disability" under such Act. Prohibits HUD from recovering certain public housing funds (grant Michigan 24-7) from the Bay City Housing Commission, Michigan. Amends the Housing and Community Development Act of 1980 to protect State and local housing agencies from liability caused by defects in the design or implementation of the required Federal illegal alien verification system. Amends the United States Housing Act regarding section 8 assistance to: (1) make vouchers available for lower income families who have been displaced from their dwelling due to rehabilitation, or whose rent would exceed 30 percent of income; (2) set voucher and certificate fee levels; (3) permit annual assistance payment adjustments; and (4) establish an adjustment pool to compensate for annual adjustments in areas with higher than normal rent increases. Requires the Comptroller General to report to the Congress by October 30, 1987, regarding: (1) the level and structure of such voucher and certificate fees; and (2) an evaluation of the voucher and certificate programs in representative rental markets. Subtitle B: Other Housing Assistance Programs - Prohibits subsidized project owners from discriminating against a certificate or voucher holders solely because of the status such prospective tenant as the holder of a certificate or voucher. Amends the Housing Act of 1959 to authorize appropriations through FY 1989 for housing for the elderly or the handicapped. Bases interest rates on the most recently issued 30-year Treasury obligations. Requires that at least 15 percent of annual appropriations for such elderly or handicapped housing be allocated for the nonelderly handicapped. Directs the Secretary to establish new and more appropriate housing and related service options for the nonelderly handicapped. Replaces the existing subsidy system with 240-month contract to cover actual costs not covered by project income. Provides for the continued commitment of certain funds for the homeownership program. Amends the Congregate Housing Services Act of 1978 to authorize appropriations for congregate services through FY 1989. Directs the Secretary to: contract for a report due to the Congress by September 30, 1989, which will: (1) document the number of elderly persons living in federally assisted housing at risk of institutionalization; (2) compare alternative congregate services delivery systems; and (3) assess the availability of Federal, State, and local financial support. Amends the Housing and Urban Development Act of 1965, with regard to rent supplement projects, to repeal the requirement that upon request, HUD furnish a project owner with certain renter information. Requires owners to give housing preference to persons in substandard housing. (Current law requires that such persons be given priority). Includes within such preferred applicants persons who are paying more than 50 percent of their income for rent. Title III: Rural Housing - Amends the Housing Act of 1949 to extend rural housing insurance and guaranty authority through FY 1989. (Sets forth specified limits on such authority for FY 1988 and 1989.) Authorizes FY 1988 and 1989 appropriations for: (1) rehabilitation grants; (2) structural rehabilitation; (3) the meeting of obligations issued under the rural housing insurance fund; (4) farm labor housing; (5) self-help housing; (6) housing preservation; and (7) administrative costs. Authorizes the Secretary, as approved in FY 1988 and 1989 appropriations, to enter into rental assistance payment contracts. Extends the 10,000-20,000 population rural area classification date to September 30, 1989. Requires the Department of Agriculture to make or insure loans for rural manufactured homes for the same time period applicable under section 2 of the National Housing Act. Defines "very low-income families or persons" for rural housing loan purposes to mean those families or persons with incomes less than the appropriate levels established under the United States Housing Act of 1937, or those families and persons with incomes that do not exceed 50 percent of the median income for all nonmetropolitan areas in the State. Permits public and private tax-exempt nonprofit sponsors to treat loan packaging costs as eligible development costs. Directs the Secretary to develop tax and insurance escrow procedures for assisted homebuyers. Title IV: Fair Housing Demonstration - Authorizes the Secretary to make grants or enter into contracts through FY 1989 with State or local governments or private or public entities, to formulate and carry out programs to prevent or eliminate discriminatory housing practices. Directs the Secretary to: (1) notify the appropriate congressional committees before entering into a grant or contract agreement; (2) submit a quarterly program summary to such committees; (3) issue implementing regulations; and (4) establish private enforcement guidelines. Authorizes FY 1988 and 1989 appropriations. Title V: Nehemiah Housing Opportunity Grants - Authorizes the Secretary to make grants to nonprofit organizations for noninterest bearing second mortgages for new or rehabilitated homes. Sets maximum loans at $15,000. Requires at least a ten percent downpayment. Prohibits leasing. Makes such loans repayable to the Secretary upon the sale, lease, or transfer of the property. Requires an eligible family to: (1) have an income not in excess of the greater of the local metropolitan median income for a family of four, or the national median income for a family of four; and (2) not have owned a home within three years. Sets forth criteria for: (1) grant selection; and (2) assistance conditions. Establishes in the Treasury the Nehemiah Housing Opportunity Fund. Requires an annual report to the Congress. Authorizes FY 1988 and 1989 appropriations.

Housing and Community Development Act of 1987 - Title I: Program Extensions and Amendments - Subtitle A: General Extension of Programs - Amends the National Housing Act to make authority permanent for: (1) title I financial institution insurance for housing renovation and modernization; (2) general mortgage insurance; (3) low and moderate income and displaced families mortgage insurance; (4) mortgage co-insurance including rental rehabilitation and development projects; (5) graduated payment and indexed mortgage insurance; (6) mortgage insurance for armed forces civilian employees and defense housing for impacted areas; (7) mortgage insurance for land development; and (8) mortgage insurance for medical and dental group practice facilities. Amends the National Flood Insurance Act of 1968 to extend authority for national flood insurance, including emergency implementation and flood-risk zones through September 30, 1989. Limits premium increases through such period to not more than a prorated annual amount of ten percent. Amends the Housing and Urban Rural Recovery Act of 1983 to extend indefinitely the maximum interest rate limitation on loans for housing and related facilities for elderly or handicapped families. Extends the Home Mortgage Disclosure Act of 1975 permanently. Amends the Housing Act of 1964 to extend urban rehabilitation loan authority through September 30, 1989. Amends the Housing Act of 1949 to extend Farmers Home Administration authority through September 30, 1989, for: (1) insured loans for rental and cooperative housing and related facilities for elderly persons and families in rural areas; and (2) mutual and self-help housing grant and loan authority. Subtitle B: Mortgage Insurance and Secondary Mortgage Programs - Amends the National Housing Act to set premium charge limits for Federal Housing Administration (FHA) mortgage insurance. Requires the Secretary of Housing and Urban Development to certify to the Congress 90 days prior to any fee increase that such increase is solely for the purpose of meeting anticipated insurance claims and administrative expenses. Raises FHA multi-family mortgage limits. Permits the refinancing of graduated payment mortgages for the total outstanding balance if refinancing would result in a lower monthly mortgage payment. Makes nursing homes, intermediate care facilities, and board and care homes eligible for health care facility refinancing mortgage insurance. Makes public nursing homes, intermediate care facilities, and board and care homes eligible for mortgage insurance. Provides, with regard to hospital mortgage insurance eligibility, that in States not having a certifying agency the required certification of need and feasibility may be provided through a State-conducted or commissioned independent study. Authorizes city and State housing authorities to use unexpended low-income rental and cooperative housing funds for interest and rental assistance payments if so agreed to by the housing authorities and the Department of Housing and Urban Development (HUD). Increases FHA authority to insure adjustable rate single-family mortgages. Prohibits the imposition of user fees on Government-sponored secondary mortgage market agencies. Amends the Federal National Mortgage Association Charter Act to permit the elimination of cumulative voting in the election of Federal National Mortgage Association (Fannie Mae) board members. Directs the Secretary to take appropriate administrative actions to reduce losses on mortgage insurance programs. Authorizes the Secretary to require mortgagors and lenders to report the taxpayer identification numbers of National Housing Act borrowers. Requires mortgagors with high default rates to submit reports, including proposed corrective steps, to the Secretary. Amends the National Housing Act to transfer mortgage insurance programs for Hawaiian homelands and Indian lands from the Mutual Mortgage Insurance Fund to the General Insurance Fund of the Treasury. Permits Native Hawaiians to transfer FHA-financed property to their children or surviving spouses who do not meet the legal definition of native Hawaiian. Provides applicants for National Housing Act property improvement or manufactured home loan insurance with the option, until January 1, 1988, of complying with either the regulations in effect prior to January 15, 1986, or the regulations published on October 25, 1985. Directs the Secretary to establish a demonstration program of home equity conversion mortgage insurance for elderly homeowners. Authorizes the Secretary to insure any home equity conversion mortgage eligible for insurance and to make insurance commitments to the extent the Secretary determines such mortgages: (1) have promise for improving the financial status or otherwise meeting the special needs of elderly homeowners; (2) will include appropriate risk safeguards for mortgagors; and (3) have acceptance potential in the private mortgage market. Sets forth provisions regarding: (1) eligibility; (2) disclosure; and (3) mortgagor information. Prohibits mortgages without a prior commitment from being insured after September 30, 1991. Limits: (1) the total number of insured mortgages to 2,500; and (2) insurance coverage to maximum one-family residence amounts under such Act. Prohibits the Secretary from insuring a home equity mortgage unless the mortgage defers repayment until the homeowner's death, sale of the house, or other occurrence as specified by the Secretary. Requires the Secretary to: (1) submit an interim program report to the Congress by September 30, 1989; (2) submit a preliminary program evaluation to the Congress by March 30, 1992, and biennial program reports thereafter; and (3) issue proposed implementing regulations. Amends the Federal National Mortgage Association Charter Act to permanently extend the authority of Fannie Mae to purchase residential second mortgages. Amends the Federal Home Loan Mortgage Corporation Act to permanently extend the authority of the Federal Home Loan Mortgage Corporation (Freddie Mac) to purchase residential second mortgages. Amends specified provisions of the National Housing Act regarding negotiated interest rates, including certain provisions regarding nursing home fire safety equipment. Amends the definition of veteran, for purposes of mortgage insurance and rehabilitation and neighborhood conservation housing insurance, to require that persons who enlisted in the armed forces after September 7, 1980, or who entered active duty after October 16, 1981, have their eligibility determined in accordance with specified Federal law. Repeals specified coinsurance provisions. Amends the Housing and Community Development Act of 1977 to repeal the requirement that HUD prepare annual prototype housing costs. States that any new credit authority provided by this Act shall be effective only to the extent that such amounts are approved in appropriation Acts. Subtitle C: Community and Neighborhood Development and Conservation Programs - Amends the Housing and Community Development Act of 1974 to extend community development block grant entitlement authority for certain metropolitan city and urban county areas through September 30, 1989. Reduces FY 1991 grants by 50 percent to any such entity that loses its entitlement classification, with the remaining 50 percent allocated to the small city community development program (for which such entity would be eligible). Gives cities becoming classified as metropolitan cities the option to defer such classification if they elect to have their population included in an urban county. Stipulates for FY 1988 that a city may elect not to retain its metropolitan city classification. Includes within the definition of urban county a county that has: (1) a combined population in excess of 175,000; (2) more than 50 percent of its housing units unsewered; and (3) a specified sole source acquifer. Extends through FY 1989 the transition classification of a designated urban county whose decreased population no longer entitles it to such designation. Defines the entire nonmetropolitan area of a State as the designated area for making community development block grant (CDBG) income determinations. Considers the counties of Kauai, Maui, and Hawaii in the State of Hawaii as cities for urban development action grant (UDAG) purposes. Authorizes UDAG appropriations through FY 1989. Modifies UDAG selection criteria so that: (1) 65 percent of such grants are awarded on the basis of distress, impact, and project quality and (2) 35 percent on project quality alone. Awards bonus points for certain cities that have not received a grant since October 15, 1984. Requires at least two rounds of UDAG grant competitions annually. Permits a city to retain any repaid UDAG funds. Requires the city to submit a plan to the Secretary for such funds' reuse. Prohibits the Secretary from discriminating against applications on the basis of the type of activity involved. Requires the Comptroller General to: (1) report to the Congress within six months, and every three years thereafter, regarding such selection criteria and eligibility standards; and (2) report to the Congress within three months of the final FY 1987 grant competition regarding targeting of grants, geographic distribution, funding levels, and economic development. Prohibits relocating a business from one UDAG area to another unless the Secretary determines that no adverse effect will result. Authorizes appropriations through FY 1989 for: (1) CDBG; and (2) urban homesteading. Extends the local property demonstration program through FY 1989. Extends the evaluation reporting date to December 31, 1989. Gives homesteading priority to lower income families. Amends the Housing Act of 1964 to prohibit risk premiums or loan fees under the rehabilitation loan program. Amends the Neighborhood Reinvestment Corporation Act to authorize appropriations for the Neighborhood Reinvestment Corporation through FY 1989. Modifies the composition of the Neighborhood Reinvestment Corporation Board to permit designated members rather than only the Chairmen of the Home Loan Bank Board, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, to be on such Board. Amends the Housing and Urban-Rural Recovery Act of 1983 to authorize appropriations for the neighborhood development demonstration program through FY 1989. Amends the Housing and Community Development Act of 1974 to prohibit a State from deducting administrative expenses from distribution amounts in entitlement areas in excess of the sum of $100,000 ($102,000 under current law) plus 50 percent of a State's administrative expenses above $100,000. Authorizes the City of Hartford, Connecticut, to retain and use certain land disposition proceeds from the financially closed-out Sheldon Charter Oak, Section A Urban Renewal Project (No. Conn. R. 77). Subtitle D: Miscellaneous Program Amendment - Amends the National Flood Insurance Act to authorize appropriations for flood insurance programs through FY 1989. Directs the Secretary and the Secretary of Agriculture to: (1) collect social and ethnic data on the participants of their respective housing and related programs; and (2) include such information in their annual reports to the Congress. Amends the Solar Energy and Energy Conservation Bank Act to authorize appropriations for residential and commercial solar energy improvements through FY 1989. Amends the Housing and Urban Development Act of 1970 to authorize appropriations for housing research and project development through FY 1989. Title II: Housing Assistance - Subtitle A: Programs Under United States Housing Act of 1937 - Amends the United States Housing Act of 1937 to authorize FY 1988 and 1989 budget authority for lower income housing. Makes recaptured program funds for public housing development, comprehensive improvement assistance, or Indian housing available for reuse. Requires: (1) 15-year terms for annual contributions contracts for (section 8) existing dwellings; (2) administrative and preliminary fees to be calculated according to the method in effect prior to January 1, 1985; and (3) an annual adjustment of fair market rents as of October 1 of each year. Authorizes appropriations through FY 1989 for public housing authority (PHA) operating subsidies. Prohibits the Secretary from totally restricting public housing admissions to very-low income families. Provides a displacement exemption for low-income families. Authorizes appropriations through FY 1989 for the rental rehabilitation and development program. Extends eligibility to housing which is owned by State or locally chartered neighborhood nonprofit organizations. Sets rehabilitation assistance caps at $7,500 per unit for units with up to two bedrooms and $8,500 per unit for units with three or more bedrooms (current cap is $5,000 per unit). Gives grantees the option of basing their assisted housing rent on recent median area income or on such income at the time of the grantee's project application. Authorizes the Secretary to require HUD applicants or participants to provide social security or employer identification numbers in order to verify eligibility. Amends the Social Security Act to provide HUD with access to State wage or unemployment compensation records. Limits the use of such information to housing eligibility purposes. Sets forth applicant and participant protections. Imposes a criminal penalty for the wrongful request or disclosure of such information. Amends the United States Housing Act of 1937 to permit public housing residents to form resident management corporations. Requires such corporations to obtain fidelity bonding and insurance and have their records audited annually. Authorizes such projects to receive comprehensive improvement assistance. Provides for: (1) retention of excess revenues; and (2) resident management technical assistance and training. Limits financial assistance to: (1) $100,000 for any particular project; and (2) $1,500,000 for the total program. Provides lower income public housing residents with the opportunity to purchase project dwelling units through a qualifying resident management corporation. Requires, as conditions for resident ownership, that: (1) a resident management corporation be formed; (2) the corporation has entered into a contract with the PHA; and (3) the corporation has demonstrated its managerial ability for at least three years. Authorizes the Secretary to provide comprehensive improvement assistance to a project undergoing resident ownership activities. Sets forth purchase conditions, including: (1) PHA public hearings; (2) safety and livability determinations; and (3) PHA certification of sold unit replacement if justified by local low-income housing needs. Sets forth resale conditions, including: (1) permitted resale only to the resident management corporation, PHA, or other eligible low-income family; and (2) recapture of profit for any unit resold within five years. Requires that sale or recapture proceeds be used only to increase the number of available units. Permits PHA financing if no other source is available. Sets the interest rate at not less than 70 percent of the conventional mortgage rate. Requires HUD to continue to pay annual assistance to the project. Eliminates operating subsidies for a purchased building. Sets forth the following protection for nonpurchasing families: (1) eviction prohibition; (2) tenants' rights; (3) and rental and relocation assistance. Directs the Secretary to: (1) provide PHAs with the necessary financial assistance to carry out such ownership program; and (2) report annually to the Congress. States that after September 30, 1987, the Secretary shall reserve public housing funds only if: (1) funds are needed to complete units whose funding is already obligated; (2) at least 85 percent of the units meet, or will meet, HUD standards; (3) development is needed to replace disposed units or to comply with court orders or the Secretary's directions; or (4) the locality has demand for family housing that the PHA plans to meet with the development of not more than 100 units. Permits up to 20 percent of public housing development funds to be used for redesign or reconstruction of existing projects. Sets forth the findings of the Congress regarding the problems of substandard public housing and the need to reform the comprehensive grant program in order to provide stable assistance and capital and managerial improvements. Directs the Secretary, within one year of enactment of this Act, to: (1) complete the HUD public housing modernization study, and any other related studies; and (2) submit to the Congress specified funding allocation determinations. Revises the definition of "disability" under such Act. Subtitle B: Other Housing Assistance Programs - Prohibits subsidized project owners from discriminating against a certificate or voucher holder solely because of the status of such prospective tenant as the holder of a certificate or voucher. Amends the Housing Act of 1959 to authorize appropriations through FY 1989 for housing for the elderly or the handicapped. Bases interest rates on the most recently issued 30-year Treasury obligations. Requires that at least 15 percent of annual appropriations for such elderly or handicapped housing be allocated for the nonelderly handicapped. Directs the Secretary to establish new and more appropriate housing and related service options for the nonelderly handicapped. Replaces the existing subsidy system with 240-month contract to cover actual costs not covered by project income. Provides for the continued commitment of certain funds for the home ownership program. Amends the Congregate Housing Services Act of 1978 to authorize appropriations for congregate services through FY 1989. Directs the Secretary to contract for a report due to the Congress by September 30, 1989, which will: (1) document the number of elderly persons living in federally assisted housing at risk of institutionalization; (2) compare alternative congregate services delivery systems; and (3) assess the availability of Federal, State, and local financial support. Amends the Housing and Urban Development Act of 1965, with regard to rent supplement projects, to repeal the requirement that HUD furnish a project owner with certain renter information. Requires owners to give housing preference to persons in substandard housing. (Current law requires that such persons be given priority.) Includes among such preferred applicants persons who are paying more than 50 percent of their income for rent. Title III: Rural Housing - Amends the Housing Act of 1949 to extend rural housing insurance and guaranty authority through FY 1989. (Sets forth specified limits on such authority for FY 1988 and 1989.) Authorizes FY 1988 and 1989 appropriations for: (1) rehabilitation grants; (2) structural rehabilitation; (3) the meeting of obligations issued under the rural housing insurance fund; (4) farm labor housing; (5) self-help housing; (6) housing preservation; and (7) administrative costs. Authorizes the Secretary, as approved in FY 1988 and 1989 appropriations, to enter into rental assistance payment contracts. Extends the 10,000-20,000 population rural area classification date to September 30, 1989. Requires the Department of Agriculture to make or insure loans for rural manufactured homes for the same time period applicable under section 2 of the National Housing Act. Defines "very-low income families or persons" for rural housing loan purposes to mean those families or persons with incomes less than the appropriate levels established under the United States Housing Act of 1937, or those families and persons with incomes that do not exceed 50 percent of the median income for all nonmetropolitan areas in the State. Permits public and private tax-exempt nonprofit sponsors to treat loan packaging costs as eligible development costs. Directs the Secretary to develop tax and insurance escrow procedures for assisted homebuyers. Title IV: Fair Housing Demonstration - Authorizes the Secretary to make grants or enter into contracts through FY 1989 with State or local governments or private or public entities to formulate and carry out programs to prevent or eliminate discriminatory housing practices. Directs the Secretary to: (1) notify the appropriate congressional committees before entering into a grant or contract agreement; (2) submit a quarterly program summary to such committees; (3) issue implementing regulations; and (4) establish private enforcement guidelines. Authorizes FY 1988 and 1989 appropriations. Title V: Nehemiah Housing Opportunity Grants - Authorizes the Secretary to make grants to nonprofit organizations for noninterest bearing second mortgages for new or rehabilitated homes. Sets maximum loans at $15,000. Requires at least a ten percent downpayment. Prohibits leasing. Makes such loans repayable to the Secretary upon the sale, lease, or transfer of the property. Requires an eligible family to: (1) have an income not in excess of the greater of 115 percent of the local metropolitan median income for a family of four, or the national median income for a family of four; and (2) not have owned a home within three years. Sets forth criteria for: (1) grant selection; and (2) assistance conditions. Establishes in the Treasury the Nehemiah Housing Opportunity Fund. Requires an annual report to the Congress. Authorizes FY 1988 and 1989 appropriations.