Multifamily Housing Property Disposition Reform Act of 1994

TABLE OF CONTENTS: Title I: Multifamily Property Disposition Reform Title II: Other Program Reforms Subtitle A: Home Investment Partnerships Program Subtitle B: HOPE Homeownership Program Subtitle C: Community Development Block Grants Title III: Technical Amendments Multifamily Housing Property Disposition Reform Act of 1994 - Title I: Multifamily Property Disposition Reform - Amends the Housing and Community Development Amendments of 1978 to revise provisions regarding the management and disposition of Department of Housing and Urban Development (HUD) - held multifamily properties and mortgages. (Sec. 101) Authorizes the Secretary of HUD (Secretary) to dispose of a HUD project on a competitive or other basis to a purchaser determined by the Secretary to be capable of its management. Provides for the payment of project-based assistance under section 8 of the United States Housing Act of 1937 for subsidized or formerly subsidized projects receiving mortgage-related or rental assistance. Authorizes the Secretary to make alternative assistance available (such as use and rent restrictions or section 8 assistance only to very low-income persons) for certain unsubsidized projects under specified circumstances. Requires the Secretary, with respect to unsubsidized projects, to provide project-based or tenant-based rental programs prior to purchase. Authorizes the Secretary to enter into an annual contribution contract with a public housing agency to provide section 8 assistance on behalf of all low-income families in a purchased project if sufficient affordable housing is locally available. Authorizes alternative disposition assistance, including: (1) discounted sales price; (2) use and rent restrictions; (3) up-front grants; (4) tenant-based assistance; (5) rebuilding assistance; or (6) alternative uses and uses under other housing programs. Provides protections for unassisted very low-income tenants. Provides for 15-year rental assistance contracts, with shorter contracts permitted under specified conditions. Grants a right of first purchase refusal to local and State entities. Authorizes the sale of mortgages covering unsubsidized projects. Authorizes the Secretary to provide: (1) short-term loans to facilitate the sale of multifamily housing projects to nonprofit organizations or public agencies, subject to specified conditions; and (2) tenant-based assistance to very low-income families that do not otherwise qualify for project-based rental assistance. (Sec. 102) Amends the Housing and Community Development Act of 1987 to eliminate the State agency multifamily property disposition demonstration program. (Sec. 103) Amends the Housing and Community Development Act of 1992 with respect to the comprehensive needs assessment which owners of covered multifamily housing properties, including those for the elderly, must submit to the Secretary. Requires preparation of the assessment by an entity that has not identity of interest with the owner. Revises the schedule for submission of all such assessments by the end of FY 1997. Requires the Secretary to allow 30 days for completion or revision of incomplete or inadequate assessments. Authorizes the Secretary to allocate, non-competitively, operating assistance, capital improvement assistance, and loan management assistance on the basis of such assessments. Amends the Housing and Community Development Amendments of 1978 with respect to the flexible subsidy program to repeal mandatory: (1) utility cost considerations in rental approvals; and (2) minimum owner contributions to capital improvements, and related requirements. Revises the selection criteria for capital improvement assistance. Directs the Secretary, as soon as practicable, to implement a streamlined refinancing program to prevent the default of Federal Housing Administration (FHA)-insured mortgages covering multifamily housing projects. Requires the Comptroller General to report to specified congressional committees: (1) on the adequacy of loan loss reserves in the General Insurance and Special Risk Insurance Funds, presenting recommendations for the Secretary to prevent such losses; and (2) on the roles and performance of the nursing home, hospital, and retirement service center insurance programs as they relate to the General Insurance Fund. Amends the National Housing Act to require the Secretary to undertake annual reviews of the actuarial soundness of each of the insurance programs constituting the General and the Special Risk Insurance Funds. Authorizes the Secretary to permit the mortgagor of a multifamily housing project subject to an insured mortgage, in order to prevent its imminent default, to use the project for purposes not contemplated by or permitted under the regulatory agreement, if such uses meet certain criteria. Requires displaced tenant protection of alternate housing and rental assistance. (Sec. 104) Amends the Department of Housing and Urban Development Act to repeal the Secretary's: (1) mandate to reduce the interest rate on a mortgage held by the Secretary to a certain minimum rate if necessary to avoid foreclosure; and (2) authority to increase a reduced rate once the mortgagor's income or ability to pay interest has increased. (Sec. 105) Amends the National Housing Act to authorize appropriations for the General and the Special Risk Insurance Funds for FY 1994 and 1995. Title II: Other Program Reforms - Subtitle A: Home Investment Partnerships Program - Amends the Cranston-Gonzalez National Affordable Housing Act to make State agencies eligible to participate in the HOME investment partnerships program (program). (Sec. 203) Eliminates from the program the first-time homebuyer requirement. (Sec. 205) Eliminates from the program the separate (Comptroller General) audit requirement. (Sec. 207) Amends the Housing and Community Development Act of 1974 to permit the use of community development block grant (CDBG) funds for program expenses. (Sec. 208) Suspends program requirements (with exceptions) for certified disaster area use. Subtitle B: HOPE Homeownership Program - Reduces the HOPE single-family ownership program recipient matching requirement. Subtitle C: Community Development Block Grants - Amends the Housing and Community Development Act of 1974 to authorize the Secretary to make grants to enhance the security of guaranteed property acquisition loans or to improve project viability. Permits recaptured urban development action grant (UDAG) funds to be used for such grants. Amends the Housing and Community Development Act of 1974 to establish a UDAG retention program. (Sec. 233) Amends the Housing and Community Development Act to authorize the guarantee of section 108 loan-backed obligations. (Sec. 234) Suspends CDBE requirements (with exceptions) for certified disaster area use. Title III Technical Amendments - Amends the United States Housing Act of 1937 to state that adjustments to a public housing agency's operating subsidy shall reflect actual changes in rental income collections resulting from anticipated fraud recoveries. (Sec. 305) Revises environmental review provisions for the lead-based paint hazard reduction program under the Housing and Community Development Act of 1992 and for assisted housing programs under title I of the United States Housing Act of 1937. Amends the United States Housing Act of 1937 to authorize the Secretary, in lieu of the environmental protection procedures otherwise applicable, to provide for the release of funds for projects or activities, upon the request of a public housing agency, if the State or local government assumes all of the responsibilities for environmental review, decisionmaking, and action under the National Environmental Policy Act of 1969 and related law which would otherwise apply to the Secretary. (Sec. 306) Amends the National Housing Act to revise specified multifamily mortgage limits. (Sec. 307) Amends the Housing and Community Development Act of 1992 to revise the: (1) multifamily housing risk sharing program; and (2) housing finance agency pilot program. (Sec. 308) Authorizes subsidy layering review by a housing credit agency certification of appropriate assistance limits.

TABLE OF CONTENTS: Title I: FHA Multifamily Reforms Title II: Enhance Program Flexibility Subtitle A: Office of Public and Indian Housing Subtitle B: Office of Community Planning and Development Subtitle C: Community Partnerships Against Crime Title III: Technical and Other Amendments Subtitle A: Public and Assisted Housing Subtitle B: Multifamily Housing Subtitle C: Miscellaneous and Technical Amendments Title IV: General Provisions Housing and Community Development Act of 1993 - Title I: FHA Multifamily Reforms - Amends the Housing and Community Development Amendments of 1978 to revise provisions regarding the management and disposition of Department of Housing and Urban Development (HUD) - held multifamily properties and mortgages. (Sec. 101) Sets forth general contract requirements for unsubsidized projects, and provides for the sale of mortgages held on such projects. Provides for annual contribution contracts with public housing agencies for tenant-based assistance to all eligible low-income families in multifamily housing projects acquired by a purchaser other than the Secretary after foreclosure or after sale by the Secretary. Requires the Secretary to provide assistance to any very low-income tenant currently residing in a unit otherwise required to receive project-based rental assistance. Authorizes the Secretary to provide: (1) short-term loans to facilitate the sale of multifamily housing projects to nonprofit organizations or public agencies, subject to specified conditions; and (2) tenant-based assistance to very low-income families that do not otherwise qualify for project-based rental assistance. Directs the Secretary to develop procedures to facilitate, where feasible and appropriate, the sale of multifamily housing projects to existing tenant organizations with demonstrated capacity or to public or nonprofit entities that represent or are affiliated with such organizations. (Sec. 102) Amends the Housing and Community Development Act of 1987 to eliminate the State agency multifamily property disposition demonstration program. (Sec. 103) Authorizes the Secretary of Housing and Urban Development (Secretary) to carry out a Resolution Trust Corporation marketing disposition of unsubsidized multifamily property demonstration program. (Sec. 104) Amends the National Housing Act to authorize civil money penalties against general partners and certain managing agents of multifamily projects. (Sec. 105) Directs the Federal Housing Commissioner to develop models designed to assist State and local governments in using other Federal programs to acquire, rehabilitate, or otherwise participate in the disposition of multifamily housing projects owned by the Secretary, or the sale of such projects subject to mortgages held by the Secretary. (Sec. 106) Amends the Housing and Community Development Act of 1992 with respect to the comprehensive needs assessment which owners of covered multifamily housing properties, including those for the elderly, must submit to the Secretary. Requires preparation of the assessment by an entity that has no identity of interest with the owner. Revises the schedule for submission of all such assessments by the end of FY 1997. Requires the Secretary to allow reasonable time for completion or revision of incomplete or inadequate assessments. Authorizes the Secretary to allocate, non-competitively, operating assistance, capital improvement assistance, and loan management assistance on the basis of such assessments. Amends the Housing and Community Development Amendments of 1978 with respect to the flexible subsidy program to repeal mandatory: (1) utility cost considerations in rental approvals; and (2) minimum owner contributions to capital improvements, and related requirements. Revises the selection criteria for capital improvement assistance. Provides a special set aside of funds for FY 1994 assistance. Directs the Secretary, as soon as practicable, to implement a streamlined refinancing program to prevent the default of Federal Housing Administration (FHA)-insured mortgages covering multifamily housing projects. Authorizes the Secretary, in lieu of assignment of a mortgage insured by the Secretary on a multifamily housing project, to accept partial payment of the claim under the mortgage insurance contract, subject to specified conditions. Requires the Comptroller General to report to specified congressional committees: (1) on the adequacy of loan loss reserves in the General Insurance and Special Risk Insurance Funds, presenting recommendations for the Secretary to prevent such losses; and (2) on the role and performance of the nursing home, hospital, and retirement service center insurance programs as they relate to the General Insurance Fund. Amends the National Housing Act to require the Secretary to undertake annual reviews of the actuarial soundness of each of the insurance programs constituting the General and the Special Risk Insurance Funds. Authorizes the Secretary to permit the mortgagor of a multifamily housing project subject to an insured mortgage, in order to prevent its imminent default, to use the project for purposes not contemplated by or permitted under the regulatory agreement, if such uses meet certain criteria. Requires the Secretary to make tenant-based assistance available to any tenant displaced as a result. Authorizes the Secretary to carry out a demonstration to test the feasibility of restructuring and disposing of troubled multifamily mortgages held by the Secretary through the establishment of partnerships among public, private, and nonprofit entities. Amends the Housing and Community Development Act of 1992 to: (1) require the National Interagency Task Force on Multifamily Housing to make available to HUD any information that will assist in preventing future default of multifamily project mortgages; and (2) authorize the Secretary to use any non-Federal or private funding or the authority provided for salaries and expenses in appropriations Acts for activities carried out by the Task Force. (Sec. 107) Amends the Department of Housing and Urban Development Act to repeal the Secretary's: (1) mandate to reduce the interest rate on a mortgage held by the Secretary to a certain minimum rate if necessary to avoid foreclosure; and (2) authority to increase a reduced rate once the mortgagor's income or ability to pay interest has increased. (Sec. 108) Amends the National Housing Act to authorize appropriations for the General and the Special Risk Insurance Funds for FY 1994 and 1995. Title II: Enhance Program Flexibility - Subtitle A: Office of Public and Indian Housing - Amends the United States Housing Act of 1937 to raise the cap for severely distressed public housing grants from $200,000 to $500,000. (Sec. 201) Requires applications for such grants to describe community service and support service planning activities a grant may be used for. Requires non-Federal contributions for support services. Permits the Secretary, in making such grants, to select a lower-rated, approvable application over a higher-rated one to increase the national geographic diversity among approved applications. Allows a revitalization plan to include demolition and replacement on site or in the same neighborhood if the number of replacement units in the neighborhood is fewer than the number of units demolished. Limits a public housing agency to replacing only one-third of the units demolished or disposed of with tenant-based assistance. Allows a public housing agency's revitalization plan to provide that all or part of additional dwelling units replacing demolished or disposed of units may be located outside the agency's jurisdiction in certain circumstances. (Sec. 202) Establishes a temporary earned income disallowance from public housing rent determinations. Allows maximum ten percent rent increases after the temporary period. (Sec. 203) Revises the minimum monthly rental payable by families in assisted housing to be not less than the reasonable rental value of the unit. (Sec. 204) Increases from $100,000 to $250,000 the amount of financial assistance the Secretary may give to resident management corporations or resident councils. Limits to ten percent the amount of resident management technical assistance and training appropriations the Secretary may use for program monitoring and evaluation, technical assistance, and information dissemination. Subtitle B: Office of Community Planning and Development - Amends the Housing and Community Development Act of 1974 to increase eligible economic activities under the loan guarantee program, including loan guarantees for colonias. (Sec. 211) Authorizes the Secretary to make economic development grants in connection with notes guaranteed under such Act to eligible public entities for the purpose of enhancing the security of guaranteed loans or improving the viability of projects financed with them. Allows the use of urban development action grant (UDAG) recaptures to provide for such grants. Provides for a UDAG amnesty program under which a UDAG grantee may enter into an agreement with the Secretary to receive a percentage of any grant amounts remaining unexpended as of a certain date, while relinquishing all claims to the balance of the grant. (Sec. 212) Amends the Cranston-Gonzalez National Affordable Housing Act to revise the HOME investment partnerships program, including provisions regarding State agency participation, removal of first-time homebuyer limitations, and certain threshold requirements. (Sec. 213) Reduces the single family HOPE program matching requirement. (Sec. 214) Authorizes the Secretary to suspend all but specified requirements for community development block grants in disaster areas. (Sec. 215) Amends the Cranston-Gonzalez National Affordable Housing Act to authorize the Secretary to suspend all but specified requirements for the HOME program in disaster areas. Subtitle C: Community Partnerships Against Crime - Amends the Anti-Drug Abuse Act of 1988 to retitle chapter 2 of subtitle C of title V as the Community Partnerships Against Crime Act of 1993. Expands the scope of anti-crime grant activities. Limits the term of such a grant to one year, renewable for up to four years. Increases and extends authorizations of appropriations. Obligates funds for public housing agency technical assistance. Title III: Technical and Other Amendments - Subtitle A: Public and Assisted Housing - Amends the United States Housing Act of 1937 to make specified public housing provisions applicable to Indian housing. (Sec. 305) States that adjustments to a public housing agency's operating subsidy shall reflect actual changes in rental income collections resulting from anticipated fraud recoveries. (Sec. 306) Amends the Housing and and Community Development Act of 1992 to repeal authority for technical assistance and capacity building grants for lead hazard reduction. (Sec. 307) Treats, for environmental review purposes, lead-based paint hazard reduction grants as assistance under the HOME Investment Partnership Act. (Sec. 308) Amends the Federal Fire Prevention and Control Act of 1974 to modify the requirement that newly constructed multifamily property be protected by an automatic sprinkler system as a pre-condition for receiving Federal housing assistance. Allows an equivalent level of safety in lieu of an automatic sprinkler system. (Sec. 309) Authorizes the Secretary to enter into contracts for coversion of Leonard Terrace Apartments in Grand Rapids, Michigan, from a leased housing contract under section 23 of the United States Housing Act of 1937 to a section 8 project-based rental assistance contract. Conditions this authorization on repayment to the Secretary of all amounts received by the public housing agency under the comprehensive improvement assistance program. States generally that certain leased housing contracts converted to section 8 contracts, which expire in 1994 or 1995, shall be extended for up to five years as if their rents were established under the section 8 new construction program. (Sec. 310) Prohibits a recipient of Federal housing assistance from using such funds to indemnify contractors or subcontractors against costs associated with litigating or settling disputes concerning the infringement of intellectual property rights. (Sec. 311) Amends the United States Housing Act of 1937 to authorize the Secretary, in lieu of the environmental protection procedures otherwise applicable, to provide for the release of funds for projects or activities, upon the request of a public housing agency, if the State or local government assumes all of the responsibilities for environmental review, decisionmaking, and action under the National Environmental Policy Act of 1969 and related law which would otherwise apply to the Secretary with respect to the release of funds. (Sec. 312) Amends the Housing and Community Development Act of 1992 with respect to increased State flexibility in the Low-Income Home Energy Assistance Program. States that, for Low-Income Home Energy Assistance Program purposes, tenants who receive energy assistance through utility allowances that include energy costs under specified housing programs shall not have their eligibility automatically denied. Allows States to consider the amount of the heating or cooling component of utility allowances received by such tenants when setting benefit levels. Requires States to ensure that the highest level of assistance will be provided to households with the highest energy burdens. Subtitle B: Multifamily Housing - Makes technical amendments to specified housing programs. (Sec. 323) Amends the Housing and Community Development Act of 1992 to require a housing credit agency to certify to the Secretary that the combination of Federal assistance (subsidy layering, including HUD assistance and low-income housing tax credits) provided in connection with a property shall not be more than is necessary to provide affordable housing. Authorizes the Secretary to take over specified responsibilities of such agency for affected projects in the event the agency fails to comply with subsidy layering guidelines. Subtitle C: Miscellaneous and Technical Amendments - Amends the Housing Act of 1937, with respect to the rural housing preservation program, to authorize the Secretary to make or insure equity loans for housing financed before December 15, 1989 (currently, before December 21, 1979). (Sec. 332) Authorizes the city of Slidell, Louisiana, to submit within ten days after enactment of this Act, and requires the Secretary to consider and accept, the final statement of community development objectives and projected fund use required under the Housing and Community Development Act of 1974 in connection with a specified grant to the city for FY 1994. (Sec. 333) Authorizes the Secretary, in lieu of the environmental protection procedures otherwise applicable, to provide for the release of funds for certain special projects (for example, those related to annual contributions for assisted housing), upon the request of a special project assistance recipient, if the State or local government assumes all of the responsibilities for environmental review, decisionmaking, and action under the National Environmental Policy Act of 1969 and related law which would otherwise apply to the Secretary with respect to the release of funds. Title IV: General Provisions - Amends the Mount Rushmore Commemorative Coin Act to revise the formula for the distribution of surcharges (currently 50-50 between the Mount Rushmore National Memorial and reduction of the national debt) to specify the first $18.75 million to be paid for the former and the remainder to go for the latter. (Sec. 402) Authorizes specified expenditures for wastewater treatment projects in minority communities with special needs.

TABLE OF CONTENTS: Title I: FHA Multifamily Reforms Title II: Enhance Program Flexibility Subtitle A: Office of Public and Indian Housing Subtitle B: Office of Community Planning and Development Subtitle C: Community Partnerships Against Crime Title III: Technical and Other Amendments Subtitle A: Public and Assisted Housing Subtitle B: Multifamily Housing Housing and Community Development Act of 1993 - Title I: FHA Multifamily Reforms - Amends the Housing and Community Development Amendments of 1978 to revise provisions regarding the management and disposition of Department of Housing and Urban Development (HUD) - held multifamily properties and mortgages. (Sec. 103) Amends the Housing and Community Development Act of 1987 to eliminate the multifamily property disposition demonstration program. (Sec. 104) Authorizes the Secretary of Housing and Urban Development (Secretary) to carry out a Resolution Trust Corporation marketing disposition multifamily property demonstration program. (Sec. 105) Amends the National Housing Act to authorize civil money penalties against general partners and certain managing agents of multifamily projects. Title II: Enhance Program Flexibility - Subtitle A: Office of Public and Indian Housing Freeze - Bases ongoing administrative fee costs for the certificate and voucher programs on FY 1993 rent levels. (Sec. 202) Amends the United States Housing Act of 1937 to raise the cap for severely distressed public housing grants. Revises specified program provisions. (Sec. 203) Establishes a temporary earned income disallowance from public housing rent determinations. Subtitle B: Office of Community Planning and Development - Amends the Housing and Community Development Act of 1974 to increase eligible economic activities under the loan guarantee program, including loan guarantees for colonias. (Sec. 211) Amends the Cranston-Gonzalez National Affordable Housing Act to revise the HOME investment partnerships program, including provisions regarding State agency participation, removal of first-time homebuyer limitations, and certain threshold requirements. (Sec. 212) Reduces the single family HOPE program matching requirement. Subtitle C: Community Partnerships Against Crime - Amends the Anti-Drug Abuse Act of 1988 to retitle chapter 2 of subtitle C of title V as the Community Partnerships Against Crime Act of 1993. Expands the scope of anti-crime grant activities. Increases and extends authorizations of appropriations. Obligates funds for public housing agency technical assistance. Title III: Technical and Other Amendments - Subtitle A: Public and Assisted Housing - Amends the United States Housing Act of 1937 to make specified public housing provisions applicable to Indian housing. Subtitle B: Multifamily Housing - Makes technical amendments to specified housing programs.