Summary: H.R.3995 — 107th Congress (2001-2002)All Information (Except Text)

Bill summaries are authored by CRS.

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Reported to House amended, Part II (09/17/2002)

Housing Affordability for America Act of 2002 - Title I: Home Investment Partnerships Program - (Sec. 101) Amends the Cranston-Gonzalez National Affordable Housing Act regarding the HOME investment partnerships program to authorize the Secretary (Secretary) of Housing and Urban Development (HUD) to make matching grants to affordable housing trust funds established by States (40 percent of funds) and localities (60 percent).

Requires an affordable housing trust fund to establish a fiscal year allocation plan Requires a fund to use: (1) 75 percent of grant amounts for extremely low-income rental housing; and (2) 25 percent for low-income rental housing or homeownership. Authorizes up to five percent of grant amounts for operating assistance to nonprofit housing development organizations.

Defines "qualified affordable housing"as rental housing in which: (1) the rent does not exceed the lesser of the section 8 fair market rent or 30 percent of the adjusted income of a family whose income equals 65 percent of the area median income; (2) the family's rent contribution does not exceed 30 percent of its adjusted income, (3) the housing unit is subject to the requirement that a percentage of the units are available only for section 8 voucher-assisted families; (4) all units in the project are subject to restrictions providing for non-discrimination against voucher holders; and (5) the housing must be subject to the above requirements for at least 40 years.

Authorizes appropriations beginning with FY 2003.

(Sec. 102) Revises project inspection requirements. Requires that tax credit projects be inspected at least every three years.

(Sec. 103) Repeals the 20 percent limitation on program assistance that participating jurisdictions may use to provide education to homeowners and tenants, organizational support, and other technical assistance.

(Sec. 104) Makes the addition of bedrooms for elderly family members an eligible activity under the elder cottage housing opportunity program.

(Sec. 105) Allows jurisdictions to report on the use of funds based on their program year, as well as the fiscal year.

(Sec. 106) Prohibits the Secretary from barring any public employee who is in an unelected and non-decision-making role from membership on a local board of a community housing development organization.

(Sec. 107) Allows participating jurisdictions to charge compliance monitoring fees.

(Sec. 108) Authorizes the Secretary to make grants to participating jurisdictions for downpayment assistance to first-time, low-income home buyers. Authorizes FY 2003 and 2004 appropriations. States that the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 shall not apply to such assistance.

(Sec. 109) Revises eligibility requirements to provide that property qualifies as affordable homeownership housing if: (1) the property would be the principal residence of an owner whose family qualifies as low-income at the time of purchase, at signing of a lease-purchase agreement, or at the time of signing a construction contract; or (2) the property is to be occupied by uniformed employees (including policemen, firemen, maintenance workers, and teachers) whose income does not exceed 115 percent (up to 150 percent in high cost areas) of the area median.

Title II: FHA Mortgage Insurance - Subtitle A: Multifamily Housing and Health Care Facilities - (Sec. 201) Amends the National Housing Act to increase and index to the Bureau of the Census' annual construction cost index multifamily project mortgage loan limits for: (1) rental housing; (2) cooperative housing; (3) rehabilitation and neighborhood conservation housing; (4) housing for moderate income and displaced families; (5) housing for the elderly; and (6) condominiums.

(Sec 202) Increases loan limits in high-cost areas.

(Sec. 203) Revises project-need determination provisions regarding mortgage insurance for hospitals, nursing homes, intermediate care facilities, and combined facilities.

(Sec. 204) Authorizes the Secretary to carry out a program to demonstrate the effectiveness of loss mitigation actions for up to three Federal Housing Administration (FHA) insured hospitals, including: (1) a partial claim payment; (2) temporary provision of operating funds; and (3) assistance for capital improvements, including conversion of excess hospital capacity to related use. Requires a hospital to have: (1) secured binding commitments of matching funds of at least ten percent of the cost of the assistance; and (2) met any applicable State certificate of need or licensing requirement. Terminates the program on December 31, 2004.

Subtitle B: Single Family Housing - (Sec. 221) Amends the National Housing Act to revise single family housing downpayment requirements for mortgage insurance eligibility.

(Sec. 222) Provide for one percent downpayments (and deferral and reduction of up-front payments) for FHA mortgage loans for qualified elementary and secondary school teachers and administrators and public safety officers to purchase homes within the jurisdictions of their employing agencies.

(Sec. 223) Provides a 50 percent discount for teachers and public safety officers purchasing certain eligible asset properties for use as their primary residence.

(Sec. 224) Directs the Secretary to carry out a three-year mortgage assistance pilot program to assist Federal, State, and local public safety officers purchase primary residences in high-crime areas.

(Sec. 225) Eliminates the one percent interest rate restrictions on hybrid FHA adjustable rate mortgages having a fixed interest rate for the first five or fewer years.

(Sec. 226) Sets uniform national loan limits for reverse mortgages used by senior homeowners. (Eliminates FHA area loan limits.)

(Sec. 227) Requires mortgagor and co-mortgagor occupancy of any FHA insured home under the rehabilitation loan program.

(Sec. 228) Requires a rehabilitation loan agreement to include the lender's responsibility to select an inspector or consultant who would act as an agent for the lender in approving loan advances.

(Sec. 229) Makes qualifying organizations eligible purchasers of HUD-acquired one- to four-family properties.

(Sec. 230) Amends the Housing and Urban Development Act of 1970 to extend the holding period for equity skimming penalty purposes to 18 months.

(Sec. 231) Directs the Secretary to carry out a pilot program to determine whether defaults and foreclosures would be prevented in high foreclosure areas if first-time homebuyers were required to complete a homeownership counseling program prior to obtaining an FHA insured loan.

(Sec. 232) Directs the Secretary to continue to administer the disposition of FHA-held properties in "revitalization areas" (as provided for in Public Law 105-276).

Title III: Supportive Housing for Elderly and Disabled Families - (Sec. 301) Amends the Housing Act of 1959 to authorize FY 2003 and 2004 appropriations for grants to non-profit owners of federally assisted housing for the elderly which is being converted to assisted living facilities.

(Sec. 302) Amends the Housing ad Community Development Act of 1992 to require service coordinators for supportive housing for persons with disabilities.

(Sec. 303) Directs the Secretary to establish a demonstration program to increase the supply of intergenerational (households headed by an elderly person) housing, including elder cottage housing opportunity units, in connection with the supportive housing program for the elderly. Obligates demonstration program funds from FY 2003 through 2006 funds for the supportive housing for the elderly program.

(Sec. 304) Continues any use restrictions until the expiration date of the original loan term, including occupancy by elderly and handicapped families or maximum set incomes, in supportive housing for the elderly projects which have undergone foreclosure.

Title IV: Section 8 Rental Housing Assistance Program - (Sec. 401) Authorizes FY 2003 and 2004 appropriations for a housing voucher demonstration program to provide 5,000 incremental project-based vouchers under section 8 of the United States Housing Act of 1937 for extremely low-income families in newly constructed or substantially rehabilitated housing. Defines such a family as having income which does not exceed 30 percent of the area median income, or 30 percent of the national non-metropolitan median income.

(Sec. 402) Amends the United States Housing Act of 1937 to authorize a public housing agency (PHA) that is not designated as a troubled PHA to use up to two percent of allocated funds beginning in FY 2003 to directly support its housing choice voucher program for counseling, downpayment assistance, rental security deposits, and other activities that assist families in finding suitable housing.

(Sec. 403) Prohibits PHA re-screening of existing section 8 tenants in projects undergoing conversion under different criteria than were used to determine their eligibility for continued occupancy.

(Sec. 404) Authorizes the Secretary to pay incentive fees to PHAs that succeed in achieving high or substantially improved performances beginning in FY 2003.

(Sec. 405) Requires the owner of a multifamily housing project, in the case of an eligibility event such as mortgage prepayment, to lease to a family residing in the project who is provided with an enhanced voucher.

(Sec. 406) Prohibits a PHA from moving a tenant from a unit that has become oversized because of a reduction in the family unless there is a suitable unit in the same building or in the immediate neighborhood.

(Sec. 407) Amends the Quality Housing and Work Responsibility Act of 1998 to extend the (section 8) manufactured housing demonstration program through FY 2004.

(Sec. 408) Amends the Multifamily Assisted Housing Reform and Affordability Act of 1997 to revise rental reimbursement levels for expiring project-based section 8 contracts. (Sets rents for projects undergoing contract renewal at the current rent levels in effect for that project immediately prior to the renewal, with annual adjustments.)

(Sec. 409) Amends the United States Housing Act of 1937 to revise PHA project inspection requirements.

(Sec. 410) Provides for: (1) escrow of tenant rent in cases of an owner's failure to maintain a section 8 unit with compliance standards; and (2) use of such funds on behalf of a tenant's move because of the owner's failure to correct such noncompliance.

(Sec. 411) Revises project-based voucher provisions regarding: (1) adjusted rents; (2) PHA-owner contract length; (3) tenant selection; (4) owner waiting lists; (5) fair housing, subsidy layering, or competitive selection requirements; and (6) use of assistance in conjunction with public housing capital funds.

(Sec. 412) Provides enhanced section 8 vouchers for tenants who are forced to move because their unit is no longer available for rental use due to condo or coop conversions. (Permits voucher use in the same or neighboring zip code.)

(Sec. 413) Directs the Secretary to establish a section 8 demonstration program for rental assistance for grandparent-headed or relative-headed families through FY 2006.

(Sec. 414) Makes grandparent-headed and relative-headed families eligible for family unification assistance.

(Sec. 415) Revises PHA payment standard provisions to permit PHAs: (1) that have extended search times for voucher recipients and still have a voucher success rate under 80 percent, or that have poverty concentrations, to increase the voucher standards for units in a market area to between 110 and 120 percent of the fair market value for the area without first obtaining HUD approval; and (2) to establish a payment standard of 120 percent, which may be increased to 150 percent, of fair market value for a unit to be occupied by a disabled person without first receiving HUD approval.

(Sec. 416) Provides eviction protections for tenants or family members who are victims of domestic violence or dating violence.

Title V: Public Housing - Subtitle A: General Provisions - (Sec.501) Amends the United States Housing Act of 1937 to state that Federal review and approval of PHA ventures does not extend to subsidiaries, joint ventures, partnerships, or business arrangements if Federal funds or income derived from Federal funds are not used in these ventures.

(Sec. 502) Directs the Secretary to provide for third-party assessment of PHA performance.

(Sec. 503) Exempts a small PHA (a non-troubled PHA administering 100 or fewer public housing units) from submitting annual agency plans for FY 2003 through 2005.

(Sec. 504) Amends the United States Housing of 1937 to direct the Secretary to carry out a three-project demonstration program of grants to PHAs for the conversion of public housing to assisted living facilities, and to provide service coordinators for such facilities. Authorizes FY 2003 and 2004 appropriations.

(Sec. 505) Provides for innocent tenant protections in situations of domestic or date violence.

Subtitle B: HOPE VI Revitalization Program - (Sec. 521) Amends the United States Housing Act of 1937 to revise selection criteria for HOPE VI (rehabilitation of distressed public housing projects) awards.

(Sec. 522) Authorizes FY 2003 and 2004 appropriations.

(Sec. 523) Extends program authority through FY 2004.

(Sec. 524) Authorizes the Secretary to use up to five percent of HOPE VI grants to provide assistance to smaller communities to develop affordable rental and homeownership housing for low-income families in connection with a Main Street revitalization or redevelopment project. Defines smaller communities as communities with populations of 30,000 or less, or communities served by PHAs administering 100 or fewer units of assisted housing. Limits a community's fiscal year grants to $1 million.

Title VI: Homeless Housing Programs - (Sec. 601) Amends the McKinney-Vento Homeless Assistance Act to authorize appropriations through FY 2004 for the United States Interagency Council on Homelessness (as redesignated by this Act).

(Sec. 602) Authorizes appropriations through FY 2004 for the Federal Emergency Management Agency food and shelter program.

(Sec. 603) Authorizes appropriations through FY 2004 for the emergency shelter grant program.

(Sec. 604) Authorizes appropriations through FY 2004 for the supportive housing program. Authorizes annual contract renewal funding for permanent housing through the Housing Certificate Fund through FY 2004.

Establishes a 30 percent minimum set-aside (excluding contract renewal amounts) for permanent housing activities for the homeless, which shall include permanent housing designed primarily to serve homeless families with children.

Eliminates the cap on supportive housing capital expenses.

(Sec. 605) Extends and authorizes increases for the section 8 single room occupancy moderate rehabilitation program through FY 2004.

(Sec. 606) Authorizes appropriations for the shelter plus care program through FY 2004.

Authorizes annual contract renewal funding for the shelter plus care program through the Housing Certificate Fund through FY 2004. Requires that renewals meet HUD-approved local housing safety and quality standards.

(Sec. 607) Authorizes FY 2003 through 2007 appropriation for housing assistance (25 percent matching requirement) to victims of domestic violence, stalking, or sexual assault for whom relocation would assist in avoiding future incidents. Includes among such assistance: (1) supportive housing; (2) tenant-based rental assistance; (3) security deposit or first month's rent assistance; or (4) project-based transitional housing. Establishes a ten percent set-aside for grants to Indian tribes or tribal organizations.

(Sec. 608) Amends the McKinney-Vento Homeless Assistance Act to provide that Congress declares a national goal of ending homelessness within ten years of enactment of this Act.

Title VII: Native American Housing - (Sec. 701) Amends the Native American Housing Assistance and Self Determination Act of 1996 to authorize appropriations for grants, loan guarantees, credit subsidy, and training and technical assistance through FY 2004.

(Sec. 702) Permits recipients to use a percentage of their grant amounts for comprehensive housing and community development planning activities.

(Sec. 703) Amends the American Homeownership and Economic Opportunity Act of 2000 to eliminate the requirement that the Lands Title Report Commission be subject to prior appropriations.

Title VIII: Housing Impact Analysis - (Sec. 801) Requires Federal agencies, with exceptions, to certify (with documentation) in the Federal Register and to HUD that any proposed or final rule would not have a significant negative impact on housing affordability.

(Sec. 802) States that this title shall not apply to any proposed or final rule relating to the safety and soundness of: (1) federally insured depository institutions; (2) credit unions; (3) Federal home loan banks; (4) government sponsored enterprises; (5) Farm Credit institutions; or (6) foreign banks or their branches, agencies or their representative offices operating in the United States.

(Sec. 803) Requires an agency general notice of proposed rulemaking to: (1) state with particularity the text of the proposed rule; (2) request any interested persons to submit to the agency any written analyses, views and any specific alternatives; (3) provide an opportunity for comment prior to promulgation of the final rule; and (4) prepare and make available an initial housing impact analysis.

(Sec. 804) Requires an initial housing impact analysis to contain: (1) the reasons an agency is taking a particular action; (2) the objectives and legal basis for such rule; (3) a description of the estimate of the extent to which the rule would increase the cost or reduce the supply of housing or land for residential development; and (4) a description of the relevant Federal rules which may be duplicative or conflict with the proposed rule.

(Sec. 805) Requires a final housing impact analysis to contain: (1) a statement of the need for and objectives of the rule; (2) a summary of significant issues, analyses and alternatives to the proposed rule raised during the public comment period; and (3) an estimate of the extent to which the rule will impact housing affordability or an explanation of why no such estimate is available. Requires the agency to: (1) make copies of the final housing impact analysis available to the public; and (2) publish the analysis in the Federal Register.

(Sec. 806) Permits an agency to: (1) perform such analyses in conjunction with any other agenda or analyses required by any other law, executive order, or directive; and (2) consider a series of closely related rules as one rule for such purposes.

(Sec. 807) Permits an agency, in complying with such analyses requirements, to use either a quantifiable or numerical description of the effects of a proposed rule or alternatives to the proposed rule, or more general descriptive statement if quantification is not practicable or reliable.

(Sec. 809) Permits an agency to waive or delay initial housing impact analysis requirements. States that if any agency has not prepared a final housing impact analysis within 180 days from the date of publication of the final rule, the rule would have no effect.

(Sec. 810) Defines specified terms.

(Sec. 811) Directs the Secretary to develop model initial and final housing impact analyses.

(Sec. 812) States that any agency findings and housing impact analyses under this title shall not be subject to judicial review.

Title IX: Other Housing Programs - (Sec. 901) Amends the Higher Education Amendments of 1998 to repeal the scheduled Government National Mortgage Association (Ginnie Mae) mortgage guaranty fee increase.

(Sec. 902) Amends the Department of Housing and Urban Development Act to direct the Secretary to designate a single HUD office to establish, coordinate, and administer all requirements, standards, and performance measures relating to housing counseling, homeownership counseling, mortgage-related counseling, and rental housing counseling.

(Sec. 903) Amends the Housing Opportunity Program Extension Act of 1996 with respect to self-help housing provider assistance to authorize: (1) appropriations through FY 2004; (2) up to $15,000 assistance per unit, with additional amounts available in areas with high land or infrastructure costs; and (3) extension of the time limit for fund use to 48 months in extraordinary circumstances.

(Sec. 904) Amends the Cranston-Gonzalez National Affordable Housing Act to authorize appropriations for the housing opportunities for persons with AIDS program through FY 2004.

(Sec. 905) Amends the Housing and Community Development Act of 1974 to allow community development block grant funds to be used to construct tornado- or storm-safe shelters for manufactured housing parks in low- and moderate income areas. (Requires that such shelters be available to all residents of the area in which they are located.)

Authorizes additional appropriations through FY2004 to facilitate homeownership for low- and moderate income individuals.

(Sec. 906) Amends the Housing and Community Development Act of 1974 to allow community development block grant funds to be used to administer renewal communities.

(Sec. 907) Amends the Housing and Community Development Act of 1992 with respect to subsidy layering review to require (currently authorizes) HUD to accept the review and certification required by tax credit agencies for low-income housing tax credit projects.

(Sec. 908) Directs the Secretary to analyze the extent to which use of 1990 census data, rather than 2000 census data, impairs the community renewal program.

(Sec. 909) Authorizes: (1) appropriations for grants to each of the 15 Round II empowerment zones, taking into account any amounts made from prior appropriation; and (2) empowerment zones to use community block grant funds for non-Federal matching requirements.

(Sec. 910) Amends the Housing and Urban Development Act of 1968 to require that public or Indian housing agency contracts in connection with public housing capital or operating programs have a minimum of 30 percent new employees who are low-income or very low-income.

(Sec. 911) Authorizes the Secretary to make grants to non-profit organizations for operational, working capital, and organizational expenses to acquire and preserve affordable housing. Authorizes appropriations.

(Sec. 912) Amends the Housing and Community Development Act of 1974 to expand income eligibility to 115 percent of the area median income (150 percent in high cost markets) for community development block grant homeownership programs for first-time homebuyers who are uniformed municipal employees (including policemen, firemen, and maintenance workers) or municipal or county teachers.

(Sec. 913) Expresses the sense of Congress that the Secretary should: (1) appoint a permanent director to the Office of Disability Policy; (2) examine and recommend Office enhancements; and (3) establish an Office resource center for people with disabilities.

(Sec. 914) Amends the Housing Act of 1949 to direct the Secretary to encourage: (1) the transfer of ownership or control of rural multifamily rental housing to nonprofit organizations and local housing authorities; and (2) and give priority to the funding of the renovation of existing projects upon their transfer.

(Sec. 915) Expresses the sense of Congress that HUD should implement a program to provide incentives to homebuilders to offer ten-year warranties for new homes purchased with FHA-insured loans under the National Housing Act.

(Sec. 916) Directs the Secretary to carry out an affordable housing database demonstration program. Authorizes appropriations.

(Sec. 917) Directs the Secretary to determine the feasibility of establishing a "Federal Main Street Partnership Fund'' to make grants to communities for fast-track changes to zoning and planning regulations that may inhibit the revitalization of downtown commercial areas for affordable housing and commercial mixed use.

(Sec. 918) States that an owner of eligible low-income rural housing may prepay the loan on such housing without restrictions at any time after the later of: (1) 20 years from the date on which the loan was made; and (2) the date until which the owner has agreed with the Secretary of Agriculture to maintain the low-income use of the housing. Provides enhanced voucher assistance and use tenant protections.

Prohibits an owner from prepaying a loan unless: (1) amounts are provided in advance in appropriation Acts, and are obligated for assistance on behalf of each low-income family residing in the project on the date that the loan is prepaid; and (2) not less than 150 days before prepayment, the owner of the project provides written notice of intent to prepay to each tenant, the Secretary of Agriculture, the Secretary, and the chief executive officer of the appropriate State or local government.