SEC-910 -- COMMUNITY DEVELOPMENT LOAN GUARANTEES. (a) Statement of Purpose and Objectives.- (1) Purposes.-The purposes of the amendments made by this section are- (A) to reaffirm the commitment of the Federal Government to assist local governments in their efforts in stimulating economic and community development activities needed to combat severe economic distress and to help in promoting economic development activities needed to aid in economic recovery; and (B) to promote revitalization and development projects undertaken by local governments that principally benefit persons of low and moderate income, the elimination of slums and blight, and to meet urgent community needs, with special priority for projects located in areas designated as enterprise zones by the Federal Government or by any State. (2) Objectives.-In order to further the purpose described in paragraph (1), activities undertaken pursuant to the amendments made by this section shall be directed toward meeting the objectives set forth in sections 101(c) and 104(b)(3) of the Housing and Community Development Act of 1974 (42 U.S.C. 5301(c) and 5304(b)(3)) and the additional objectives of- (A) encouraging local governments to establish public-private partnerships; (B) preserving housing affordable for persons of low and moderate income; and (C) creating permanent employment opportunities, primarily for persons of low and moderate income. (b) Guarantee of Loans Issued by Nonentitlement Communities and Territories.- (1) Eligibility.- (A) In general.-Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) is amended by striking "unit of general local government" or "units of general local government" each place such terms appear and inserting "eligible public entity" or "eligible public entities", respectively. (B) Conforming amendment.-Section 108(h) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(h)) is amended by striking "unit or agency" and inserting "entity or agency". (2) Guarantee of housing construction and other loans.-Section 108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(a)) is amended in the first sentence- (A) by striking "; or" and inserting a semicolon; and (B) by inserting before the period at the end the following: "; or (4) construction of housing by nonprofit organizations for homeownership under section 17(d) of the United States Housing Act of 1937 or title VI of the Housing and Community Development Act of 1987". (3) State assistance in applications.-Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) is amended by adding at the end the following new subsection: "(n) Any State that has elected under section 106(d)(2)(A) to distribute funds to units of general local government in nonentitlement areas may assist such units in the submission of applications for guarantees under this section.". (4) State grants as security.- (A) In general.-Section 108(d) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(d)) is amended- (i) by inserting "(1)" after "(d)"; (ii) by redesignating paragraphs (1), (2), and (3), as subparagraphs (A), (B), and (C), respectively; and (iii) by adding at the end the following new paragraph: "(2) To assist in assuring the repayment of notes or other obligations and charges incurred under this section, a State shall pledge any grant for which the State may become eligible under this title as security for notes or other obligations and charges issued under this section by any unit of general local government in a nonentitlement area in the State.". (B) Repayments.-Section 108(e) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(e)) is amended by striking "subsection (d)(2)" and inserting "paragraphs (1)(B) and (2) of subsection (d)". (5) Definition.-Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) (as previously amended by this section) is further amended by adding at the end the following new subsection: "(o) For purposes of this section, the term `eligible public entity' means any unit of general local government, including units of general local government in nonentitlement areas.". (c) Loan Repayment Period.-Section 108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(a)), as amended by the preceding provisions of this Act, is further amended by inserting after the third sentence the following: "The Secretary may not deny a guarantee under this section on the basis of the proposed repayment period for the note or other obligation, unless the period is more than 20 years or the Secretary determines that the period causes the guarantee to constitute an unacceptable financial risk.". (d) Outstanding Loan Guarantee Amount Per Issuer.-Section 108(b) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(b)) is amended- (1) by inserting after "this section" the following: "(excluding any amount defeased under the contract entered into under subsection (d)(1)(A))"; (2) by striking "three" and inserting "5"; and (3) by inserting "or 107" after "section 106". (e) Allocation of Loan Guarantees and Monitoring of Amount Guaranteed for Each Community.- (1) Allocation of guarantees.-Section 108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new sentence: "Of the amount approved in any appropriation Act for guarantees under this section in any fiscal year, the Secretary shall allocate 70 percent for guarantees for metropolitan cities, urban counties, and Indian tribes and 30 percent for guarantees for units of general local government in nonentitlement areas. The Secretary may waive the percentage requirements of the preceding sentence in any fiscal year only to the extent that there is an absence of qualified applicants or proposed activities from metropolitan cities, urban counties, and Indian tribes or units of general local government in nonentitlement areas.". (2) Monitoring of Guarantees per Community.-Section 108(k) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(k)) is amended- (A) by inserting "(1)" after "(k)"; and (B) by adding at the end the following new paragraph: "(2) The Secretary shall monitor the use of guarantees under this section by eligible public entities. If the Secretary finds that 50 percent of the aggregate guarantee authority has been committed, the Secretary may- "(A) impose limitations on the amount of guarantees any one entity may receive in any fiscal year of $35,000,000 for units of general local government receiving grants under section 106(b) and $7,000,000 for units of general local government receiving grants under section 106(d); or "(B) request the enactment of legislation increasing the aggregate limitation on guarantees under this section.". (f) Debt Payment Assistance.-Section 108(h) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(h)) is amended by adding at the end the following: "The Secretary may also, to the extent approved in appropriation Acts, assist the issuer of a note or other obligation guaranteed under this section in the payment of all or a portion of the principal and interest amount due under the note or other obligation, if the Secretary determines that the issuer is unable to pay the amount because of circumstances of extreme hardship beyond the control of the issuer.". (g) Training and Information.-Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) (as previously amended by this Act) is further amended by adding at the end the following new subsection: "(p)(1) The Secretary, in cooperation with eligible public entities, shall carry out training and information activities with respect to the guarantee program under this section. Such activities shall commence not later than 1 year after the date of the enactment of the Housing and Community Development Act of 1990. "(2) The Secretary may use amounts set aside under section 107 to carry out this subsection.". (h) Annual Report.-Section 113(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5313(a)) is amended- (1) in paragraph (2), by striking "and"; (2) in paragraph (3), by striking the period at the end and inserting "; and"; and (3) by adding at the end the following new paragraph: "(4) a description of the activities carried out under section 108.". (i) Regulations.-To carry out the amendments made by this section, the Secretary of Housing and Urban Development shall- (1) issue proposed regulations not later than 90 days after the date of the enactment of this Act; and (2) issue final regulations not later than 180 days after the date of the enactment of this Act.