TITLE-I -- General Provisions and Policies


National Housing Goal: The Senate bill contained a provision not
included in the House amendment that would affirm the national goal that
every American family be able to afford a decent home in suitable
environment. The conference report contains the Senate provision.

Objective of National Housing Policy: The Senate bill contained a
provision not included in the House amendment that would establish the
objectives of a national housing policy. The conference report retains
the Senate provision with an amendment that the national housing policy
shall be to reaffirm the long established national commitment to decent,
safe and sanitary housing for every American by strengthening a
nationwide partnership of public and private institutions capable of
carrying out this policy.

Purposes of Act: The Senate bill contained a provision not included in
the House amendment that would establish the purposes of the Act. The
conference report contains the Senate provision.

Definitions, in General: The Senate bill contained a provision not
included in the House amendment to define the terms "unit of general
local government", "state", "jurisdiction", "participating
jurisdiction", "nonprofit organization", "community housing
development organization", "government-sponsored mortgage finance
corporations", "families", "moderate-income families", and
"security". The conference report contains the Senate provision with
an amendment to add four new definitions: "metropolitan city" has the
meaning given the term in Section 102(a)(4) of the Housing and Community
Development Act of 1974, "urban county" has the same meaning given the
term in Section 102(a)(6) of the Housing and Community Development Act
of 1974, "certification" means a written assertion, based on
supporting evidence that shall be kept available for inspection by the
Secretary, the Inspector General and the public, which assertion shall
be deemed to be accurate for the purposes of this Act, unless the
Secretary determines otherwise after inspecting the evidence and
providing due notice and opportunity for comment, and "to demonstrate
to the Secretary" means to submit to the Secretary a written assertion
together with supporting evidence that, in the determination of the
Secretary, supports the accuracy of the assertion.

The House amendment contained a provision not included in the Senate
bill that would define the terms "grant administrator", "nonprofit
sponsor", "nonprofit partnerships", "area and State median income",
"surplus cash flow", and, "low- and moderate-income families",
"income". The conference report did not retain these definitions.

The House amendment contained a provision not included in the Senate
bill that defined "public housing agency" to have the same meaning as
in Section 3(b) of the U.S. Housing Act of 1937. The conference report
contains the House provision.

The Senate bill contained a provision similar to a provision in the
House amendment that defined "Secretary" to mean the Secretary of HUD,
unless otherwise specified. The conference agreement includes the Senate
provision.

The Senate bill contained a provision that defined "substantial
rehabilitation" as rehabilitation of residential property in excess of
$25,000. The House amendment contained a similar provision that defined
the same term as rehabilitation projects that exceed 30% of the fair
market value of the building in cost. The conference report contains the
Senate provision.

Definition of Nonprofit Organization: The Senate bill contained a
definition of "nonprofit organization" not included in the House
Amendment. The conference report contains the Senate provision with an
amendment clarifying that such term includes a State or locally
chartered, nonprofit organization. This clarification is needed to avoid
unintended exclusion of certain nonprofit organizations in Washington
State and, perhaps, elsewhere. The conferees are aware that, since
January 1, 1987, some profit-motivated developers may have been
motivated to create captive nonprofit organizations primarily to benefit
from the nonprofit set-aside under the Low-Income Housing Tax Credit.
The conferees intend that any preferred treatment given nonprofit
organizations under this Act shall be available only to bona fide
nonprofit organizations established to advance public purposes
consistent with the objectives of this Act. Although the conferees
believe that eligible nonprofit organizations should not be prohibited
from affiliation with for-profit subsidiaries or entering into joint
ventures or other contractual relationships with for-profit
organizations, the conferees expect the Secretary in regulation to
ensure that favored nonprofit treatment is not given to organizations
that are either controlled by for-profit organizations or otherwise
affiliated with for-profit organizations in a manner that is not
essentially intended to further the nonprofit organization's public
purpose. The conferees urge the Secretary to notify Congress immediately
if the Secretary determines that additional legislative action is needed
to achieve this objective.

Definition of community housing development organization: The Senate
bill contained a definition of "community housing development
organization" that was not included in the House amendment. The
conference report includes the Senate provision. The conferees retained
the requirement that a community housing development organization have
a history of serving the local community, and intend that newly-formed
nonprofit organizations whose origin is in the local community shall be
considered to have met this requirement. For example, the requirement
could be met by a new organization formed by local churches, service
organizations or neighborhood organizations that themselves have a
history of serving the local community.

Definitions related to very low-income and low-income families: The
Senate bill contained a provision that would define "very low-income
families" as those families whose incomes do not exceed 50% or less of
area median family income, as determined by HUD with adjustments for
smaller and larger families, except that HUD may establish higher or
lower income ceilings for an area. The House amendment contained a
similar provision, except that higher or lower adjustments would not be
made on the basis of fair market rents. The conference report contains
the Senate provision.

The Senate and House contained similar definitions of "low-income
families" except that the Senate bill defined the term as those
families whose incomes do not exceed 80% of median income for the area,
whereas the House amendment measured the percentage at 60%. The
conference report includes the Senate provision.

The Senate contained a provision that defined "families" to include
single persons in the case of (A) a person who is aged 62 or older, a
person with disabilities, (B) a displaced person, (C) the remaining
member of a tenant family, and (D) other single persons in circumstances
described in regulations by the Secretary. The House amendment contains
a provision that amends the definition of "family" in Sec. 3(b)(3) of
the U.S. Housing Act of 1937 to include "any other single persons",
except that in no event may any single person be provided an assisted
housing unit of 2 bedrooms or more. The conference report includes the
Senate provision with an amendment to conform to the changes made
regarding single persons under the 1937 Act programs.

Definitions related to first-time homebuyers: The Senate bill and the
HOPE amendments contained similar provisions that defined "displaced
homemaker" as an individual who may have had an ownership interest in
a principle home and whose marriage has resulted in a legal separation,
divorce, or death. The conference report contains the provision in the
House amendment defining "displaced homemaker" with an amendment to
delete a requirement that the definition would only apply to persons
with dependents receiving AFDC.

The Senate bill and House amendment contain a provision that defined
"first-time homebuyer." The Conference report contains the House
provision with an amendment that the homebuyer is an "individual or his
or her spouse" who has not owned a home for three years.

The House amendment contained a provision that was not included in the
Senate bill that defined "single parent." The conference report
contains the House provision.

Comprehensive Housing Affordability Strategies: The Senate bill contains
a provision not included in the House amendment that would require the
Secretary to provide assistance only to jurisdictions that submit an
annual comprehensive housing affordability strategy. The Senate
provision directs the Secretary to establish deadlines and procedures
for submitting and approving housing strategies in order to facilitate
orderly program management by jurisdictions and provide for timely
investment of funds in affordable housing. The conference agreement
contains the Senate provision with an amendment requiring consideration
of (1) families who are participating in an organized program to achieve
economic independence and self-sufficiency, as provided in the House
amendment, and (2) consideration of housing needs of low income families
"expected to reside" in the jurisdiction. This provision includes a
requirement for certifying that an antidisplacement plan is in effect.

The conferees are concerned that the Department has too often in the
past administered statutory requirements for housing assistance plans
and other plans in a way that made such plans burdensome exercises that
did not further efficient management or efective achievement of key
goals. The conferees therefore emphasize that it is their intent that,
when establishing regulations for the comprehensive housing
affordability strategies, the Secretary shall ensure, to the maximum
extent feasible, that the strategies will serve not only as effective
monitoring tools for the Department, but also as concise, useful,
action-oriented management tools for States and local governments.

The conference report would require each jurisdiction that directly
receives assistance from the Department of Housing and Urban Development
to prepare a single, action-oriented strategy that looks ahead for
5-years and serves as a working guide for each jurisdiction's use of
federal and other housing resources. The strategy would replace other
plans now required by law, such as the Housing Assistance Plan (HAP)
required under CDBG and the Comprehensive Homeless Assistance Act (CHAP)
required under the McKinney Homeless Assistance Act. The state and local
strategies are designed to incorporate the useful elements of the HAPs
and CHAPs. McKinney Act funding would be available only to jurisdictions
that have an approved housing strategy. Reference to CHAP would be
eliminated. Section 104(c) of the Housing and Community Development Act
of 1974 would be amended to strike the requirement for HAPs and make
CDBG funding available only to jurisdictions that have an approved
housing strategy. An approved strategy would be a prerequisite only for
HUD assistance that goes directly to a state or unit of general local
government; it does not affect funding that is allocated to public
housing authorities.

Certification: The Senate bill contains a provision that was not
included in the House amendment that would allow the Secretary to
require that any application for assistance must contain a certification
that the proposed activities are consistent with the housing strategy
of the jurisdiction. The conference report contains the Senate
provision.

Citizen Participation: The Senate bill contained a provision that was
not included in the House amendment to insure that citizens and
interested parties within the jurisdiction have a reasonable opportunity
to comment on the housing strategy. The conference report contains the
Senate provision.

Compliance: The Senate bill contained a provision that was not included
in the House amendment that would require participating jurisdictions
to submit reports describing the progress the jurisdiction has made in
carrying out its housing strategy; require the Secretary to insure
compliance with this Act; and establish that information included in the
housing strategies regarding local public policies that have an impact
on housing affordability are not reviewable by any court. The conference
report contains the Senate provision.

Energy Efficiency Standards: The Senate bill contained a provision that
was included in the House amendment regarding the establishment of
energy efficiency standards. The conference agreement amends this
provision to clarify that HUD should promulgate energy efficiency
standards for new construction of public and assisted housing and
single-family and multifamily insured residential housing and that such
standards must be cost efficient. The standards would be developed
through a task force that includes representatives of homebuilders,
housing agencies, energy agencies and building code organizations,
energy efficiency organizations, utility organizations and low-income
housing organizations. The promulgated standards would need to meet or
exceed the provisions of the most recent Model Energy Code of the
Council of American Building Officials.

Tax and Housing Coordinating Council: The Senate bill included a
provision not in the House amendment to create a Tax and Housing
Coordinating Council to advise the President about the consistency of
Federal housing and tax policies. This provision was not included in the
conference agreement.

Capacity Study: The Senate bill contained a provision not included in
the House amendment that would require the Secretary to ensure that the
Department has adequate staff and resource capacity to carry out its
responsibilities and the mission of the Department. In order to respond
effectively to congressional concerns on this subject, the conference
committee urges the Department to include in its study an analysis of
staff levels and skills by program area including program monitoring,
as well as training programs and travel. In addition, the committee
would request that the report also analyze the capacity of the
information and financial management systems at the Department by
program area and include a long-range plan with time-frames and
budgetary requirements for meeting staffing and resource capacity needs.
The conference report contains the Senate provision.

Protection of State and Local Authority: The Senate bill contained a
provision that was not included in the House amendment that prohibits
the Secretary from establishing criteria that interfere with the
authority of States and units of local government to exercise their duly
established policy making authority. The conference report contains the
Senate provision with a clarifying amendment. The conferees intend that
federal housing assistance be used to give State and local governments
more effective tools for achieving housing affordability within their
jurisdictions. It is not the conferees' intent to give HUD new authority
to intervene in State and local decision-making. For that reason the
conference agreement reaffirms and makes clearer the provisions in title
I of the Senate bill relating to this issue.

Budget compliance: The House amendment contained a provision which would
establish Congressional Findings as follows-(1) the House of
Representatives approved a FY 1991 concurrent budget resolution; (2) the
House Report provides $3.3 billion above the CBO Baseline in FY 1991 for
new housing programs; (3) CBO programmatic baseline for aggregate budget
authority in FY 1991 is $23,869,015,000; (4) the appropriate aggregate
budget authority for housing programs under this Act is $27,169,015,000.
The conference report does not contain the House provision.

The Senate bill contained a provision that would require that each
authorization of appropriations contained in this Act (other than the
Indian Housing, Subtitle D of Title VII) shall be reduced by an amount
that bears the same ratio to (1) $54,530,000 for a FY 1991
authorization, (2) $56,711,000 for a FY 1991 authorization, and (3)
$58,980,000 for a FY 1993 authorization, as the amount authorized by
such provisions bears to the total amount authorized by this Act. The
Conference report does not contain the Senate provision.

Pro rata reduction: The House amendment contained a provision that would
reduce each program in the Act on a pro rata basis by the amount
necessary to provide an aggregate budget authority level of
$27,169,015,000 and would define the terms "budget authority" and
"concurrent resolution on the budget" as having the same meanings in
Section 3 of the 1974 Budget Act. The Senate bill contained a provision
that would require a reduction of all authorizations of appropriations
by the same ratio that $54,530,000 bears to the FY 1991 authorization
for FY91, by the ratio that $56,711,000 bears to the FY 1992
authorization for FY92, and by the ratio that $58,980,000 bears to the
FY 1993 authorization for FY93. The conference report does not contain
the House or the Senate provision.

The Senate bill contained a provision not included in the House
amendment which would guarantee each state a minimum share (0.5%) of the
aggregate amount of funds available in each fiscal year for the
following programs: Section 202 housing for elderly persons and persons
with disabilities, public housing modernization (CIAP), public housing
operating subsidies, and Indian housing development. The conference
report contains the Senate provision amended to make the minimum state
share provisions permissive and to apply only to fair share programs.

Deficit reduction recommendations: The Senate bill contained a provision
not included in the House amendment that would delineate the following
Congressional findings-(1) elimination of government waste should be the
major component of deficit reduction; (2) revenues for FY 1990 will grow
by $82 billion as a result of economic growth; (3) Comptroller General
has stated that there is $100-200 billion in annual Government waste,
fraud and mismanagement; (4) there is more than $125 billion in
outstanding delinquent debt owed to the Government by individuals; (5)
OMB has identified more than 100 "high risk" programs that are
vulnerable to fraud, waste, and abuse; (6) federal government has more
than $5.7 trillion in outstanding credit and insurance, representing a
massive potential risk to taxpayers; (7) reducing waste would free the
inefficient use of resources by the government and release them into the
private sector. The Senate bill also contained a provision that would
establish a Sense of the Senate that the President and the budget summit
members should consider the most feasible of the deficit reduction
recommendations contained in the June 1990 Report of Citizens against
Government Waste, as well as those in the public record of the
Congressional Budget Office, General Accounting Office, Office of
Management and Budget, and other agencies before considering new or
increased taxes. The conference report does not contain the Senate
provision.