TITLE-X -- Expedited Funds Availability


Expedited Funds Availability Amendment: The Senate bill contained a
provision not included in the House amendment that would extend
provisions of the Expedited Funds Availability Act through FY 1994. The
conference report contains the Senate provision with an amendment to
make it a two year extension.

From the Committee on Banking, Finance and Urban Affairs:

Henry Gonzalez,

Mary Rose Oakar,

Bruce F. Vento,

Charles Schumer,

Barney Frank,

Esteban E. Torres,

Joe Kennedy,

Jim McDermott,

Chalmers P. Wylie,

Marge Roukema,

John Hiler,

Tom Ridge,

Steve Bartlett,

From the Committee on Ways and Means, for consideration of sec. 110 of
the Senate bill and modifications committed to conference:

Dan Rostenkowski,

Sam Gibbons,

J.J. Pickle,

Pete Stark,

Andrew Jacobs, Jr.,

Harold E. Ford,

Ed Jenkins,

Tom Downey,

Bill Archer,

Guy Vander Jagt,

Phil Crane,

Bill Frenzel,

Dick Schulze,

From the Committee on Education and Labor, for consideration of secs.
1006 and 1008 and subtitles D through G of title XIII of the Senate bill
and sec. 768 of the House amendment and modifications committed to
conference:

Augustus F. Hawkins,

William D. Ford,

Austin J. Murphy,

Dale E. Kildee,

Pat Williams,

M.G. Martinez,

Major R. Owens,

Tom Sawyer,

Bill Goodling,

Tom Petri,

Steve Gunderson,

Tom Tauke,

Peter Smith,

From the Committee on Energy and Commerce, for consideration of title
XIV of the Senate bill and modifications committed to conference:

John D. Dingell,

Edward J. Markey,

Al Swift,

Mike Synar,

Ralph M. Hall,

Norman F. Lent,

Matt Rinaldo,

Carlos Moorhead,

Don Ritter,

Tom Bliley,

Managers on the Part of the House.

From the Committee on Banking, Housing, and Urban Affairs:

Don Riegle,

Alan Cranston,

Paul Sarbanes,

Alan J. Dixon,

Christopher J. Dodd,

Alfonse M. D'Amato,

John Heinz,

Christopher S. Bond,

Connie Mack,

From the Committee on Labor and Human Resources for consideration of
title XIII only:

Edward M. Kennedy,

Christopher J. Dodd,

Barbara A. Mikulski,

Orin Hatch,

Dave Durenberger,

Managers on the Part of the Senate.

contains the Senate provision.

Design flexibility: The Senate bill contained a provision not included
in the House amendment that would require the Secretary to give owners
the flexibility to design housing appropriate to their location and the
population to be served. The conference report contains the Senate
provision.

Use of funds from other sources: The Senate bill contained a provision
not included in the House amendment that would allow owners to use
nonfederal funding for amenities which could not be financed with the
advance and is not taken into account in determining the amount of
federal assistance or the rent contribution of tenants. The conference
report contains the Senate provision.

Tenant selection procedures: The Senate bill contained a provision not
included in the House amendment that would require the owner to adopt
written tenant selection procedures satisfactory to the Secretary and
to promptly notify rejected applicants in writing of the grounds for any
rejection. The conference report contains the Senate provision with an
amendment to make this information available to the appropriate local
agency serving the elderly.

Technical assistance: The Senate bill contained a provision not included
in the House amendment that would require the Secretary to make
available technical assistance. The conference report contains the
Senate provision.

Civil rights compliance: The Senate bill contained a provision not
included in the House amendment that would require compliance with
Federal, state and local civil rights laws. The conference report
contains the Senate provision.

Matching requirement: The Senate bill contained a provision not included
in the House amendment that would require applicants to contribute at
least 5% either in cash, value of land or real or personal property, or
present value of supportive services committed by private resources. The
conference report contains the Senate provision amended to retain
existing law except to raise the minimum capital investment to $25,000.
The conferees understand that the existing regulations on owner deposit
would otherwise be retained. As a reserve it could be held in escrow for
no more than 3 years.

Reduction or waiver: The Senate bill contained a provision not included
in the House amendment that would reduce or waive the matching
requirement if the sponsor is not affiliated with a national nonprofit.
The Secretary could reduce or waive the matching requirement for
individual applicants if necessary to achieve the purposes of this
section provided the applicant demonstrates that it has the capacity to
manage and maintain the housing. The conference report contains the
Senate provision with an amendment to strike the automatic waiver for
an unaffiliated nonprofit.

Appeals: The Senate bill contained a provision not included in the House
amendment that would require the Secretary to notify an owner not less
than 30 days prior to cancellation of any reservation of assistance. The
bill would provide for appeal of cancelled loan authority by an owner
within 30 days, requiring response in 45 days. The conference report
contains the Senate provision with an amendment to add that in
considering applications for assistance under section 202, the Secretary
could not reject an application on technical grounds without giving
notice of that rejection and the basis therefor to the applicant and
affording the applicant an opportunity to respond. The preparation and
submission of applications for the section 202 program require the
investment of substantial time and money by the applicant. Moreover,
they often involve the negotiation of commitments from churches,
foundations, and local government. An application that is rejected on
technical grounds because of a mistake of fact or interpretation by HUD
is a loss to the program, to the applicant and to the elderly residents
that the project would have served. Accordingly, the Secretary is
directed to afford the applicant notice and an opportunity to respond
when an application is rejected on technical grounds before applications
are submitted to HUD headquarters for final review. This is not intended
to require advance notice of proposed or final project rankings or to
require the Secretary to consider matters that occur after submission
of the application.

Davis-Bacon: The Senate bill contained a provision not included in the
House amendment that would require Davis-Bacon wage rates for projects
for 12 or more persons except if the labor is volunteer labor. The
conference report contains the Senate provision.

Definitions: The Senate bill contained a provision not included in the
House amendment that would establish the definitions for "elderly
person" "frail elderly", and "private nonprofit organization". The
conference report contains these Senate definitions. (other definitions)

Conforming amendment: The Senate bill contained a provision not included
in the House amendment that would delete the 202 program from the fair
share allocation requirements. The conference report contains the Senate
provision.

General authorizations: The Senate bill authorized capital advances of
$628,000,000 for FY 1991, $659,000,000 for FY 1992 and $685,360,000 for
FY 1993. The Senate bill provided for a revolving fund for the
appropriated amounts, any proceeds for notes and obligations, and for
any repayments. The Senate bill reserved authority, to the extent
approved in appropriations acts, in the aggregate of $346 million in FY
1991, $353 million in FY 1992, and $377,520,000 for FY 1993 for project
rental assistance. Twenty percent of the funds would be allocated to
nonmetropolitan areas. The conference report would authorize
$659,000,000 for elderly capital advances in FY 1992. Elderly rental
assistance would be authorized at $363,000,000 for FY 1992.

Effective date and applicability: The Senate bill contained a provision
not included in the House amendment that would permit owners of projects
approved under the old Section 202 program for which no loan has been
executed to elect to be subject to the provisions of the new Sec. 202
program. If funds from the original reservation remain they would be
available for use under this section. The conference report contains the
Senate provision amended to require HUD to implement the 202 revisions
through notice and comment rulemaking and to delay implementation until
FY 1992.

Expedited financing and construction: The Senate bill contained a
provision not included in the House amendment that would give HUD the
authority to expedite the processing of approved Sec. 202 projects with
two adjustments to the approvable maximum loan amount and to the fair
market rents. Both adjustments would be subject to cost controls and
would apply to projects approved 3 years prior to the enactment of this
act which have not been closed and which are in high cost areas. The
conference report contains the Senate provision.

Authorization for existing program: The House amendment contained a
provision that would extend Section 202 (housing for the elderly or
handicapped) borrowing authority through FY 1991 and would authorize
$714,237,000 in FY 1991 for Section 202 elderly and disabled loans. The
House amendment would also authorize $714,237,000 for 202 elderly and
disabled rental assistance in FY 1991. The conference report contains
the House provisions amended to authorize $714,200,000 for 202 loan
authority in FY 1991.

Congregate housing services program/Project Retrofit

In general: The House amendment contained a provision that would
reauthorize the existing congregate housing services program and
authorize a new, revised congregate services program. The Senate bill
created Project Retrofit to replace the congregate housing services
program. The conference report incorporates many of the revisions
contained in the Senate bill and the House amendment into the revised
congregate housing services program.

Authorization: The House amendment contained a provision not included
in the Senate bill that would establish a revised congregate housing
services program to be administered by HUD and FmHA for residents of
federally assisted housing occupied by older or disabled persons with
impairment in two or more activities of daily living (ADL) and/or
instrumental activities of daily living (IADL). The conference report
contains the House provision amended to require the Secretaries of HUD
and FmHA to enter into contracts to provide congregate service programs
for eligible residents and/or adapt the housing to better accommodate
the physical requirements and service needs of eligible residents.

Findings: The House amendment contained a provision not included in the
Senate bill that would establish congressional findings for the revised
congregate housing program. The conference report contains the House
provision amended to identify the need to redesign units and buildings
to meet the special physical needs of the frail elderly persons;
identify the need to create congregate space to accommodate services
that enhance independent living; change "individuals" to "persons";
and change the term "disabled individual" to "persons with
disabilities".

Purposes: The House amendment contained a provision not included in the
Senate bill that would establish the purposes of the program. The
conference report contains the House provision with an amendment to
incorporate Senate purposes dealing with retrofitting, creation of
congregate space and improvement of management capacity.

Contracts: The House amendment contained a provision not included in the
Senate bill that would authorize the Departments to enter into three
year contracts with states, units of general local government and
housing sponsors including nonprofits and public housing agencies in
nonparticipating states, and Indian tribes for the establishment of a
congregate housing services program and the delivery of supportive
services at housing sites. The conference report contains the House
provision amended to delete states as the principal grantee. The
conference report would establish a 5 year contract for services.

Reservation of funds: The House amendment contained a provision not
included in the Senate bill that would provide for reservation funds for
this program over the term of contract in the fiscal year in which the
contract is approved. The conference report contains the House
provision.

Services program: The House amendment contained a provision not included
in the Senate bill that would require the services program to be
coordinated on site and to provide meal service which meets at least one
third of the nutritional needs of eligible residents and other
appropriate services to promote and encourage maximum independence among
the elderly or disabled persons, including personal care,
transportation, chore services, housekeeping, grooming, case management,
nonmedical counseling, and medication assistance. Services should
reflect the wants and needs of elderly residents. The conference report
contains the House provision with amendments to retitle the subsection
as "Eligible Activities"; permit, rather than require HUD to fund
congregate housing services programs; include personal emergency
response systems as permissible service under a congregate services
program; incorporate Section 602(c)(1) of the Senate bill (retrofit and
renovation); and incorporate Section 602(c)(2) of the Senate bill
(service coordinators).

Eligibility: The House amendment contained a provision not included in
the Senate bill that would make services available for a fee which is
based on adjusted income of eligible residents. The fees would cover 10%
of the cost of the services but could be waived if the elderly person's
income is insufficient. The conference report contains the House
provision with amendments to clarify that any non-residents receiving
services would pay fees equal to the cost of providing the service and
incorporate Senate language on eligible residents.

Ineligible residents: The House amendment contained a provision not
included in the Senate bill that would permit ineligible residents to
receive services if the professional assessment committee, management
and service coordinators determine that providing services to ineligible
residents would not impede the program. The conference report contains
the House provision with an amendment to incorporate Senate language
governing provision of services to persons who are not residents of the
project.

Eligible housing projects: The House amendment contained a provision not
included in the Senate bill that would include public housing, HUD
assisted multifamily housing, FmHA rural rental housing and farm labor
housing projects as eligible housing projects. The conference report
contains the House provision with an amendment to revise the Section
221(d)(3) and 236 definition to conform with the prepayment report
language.

Eligible contract recipients: The House amendment contained a provision
not included in the Senate bill that would establish the eligible
recipients under this program as states and, in non-participating states
which have not applied for assistance or have made their intentions
known to the Secretaries not to apply, Indian tribes and units of local
government, and nonprofit housing sponsors, including public housing
agencies. States receiving assistance would establish an advisory
committee of not fewer than 13 specified members to assist the state in
allocating assistance under this section. The conference report contains
the House provision with an amendment to eliminate states as the primary
contract recipient. States would be permitted to apply on behalf of
owners of eligible low income housing.

Applications: The House amendment contained a provision not included in
the Senate bill that would require applications by States to contain a
services plan, a certification of matching funds, an allocation plan,
the designation of a state administering agency, identify the members
of the state advisory committee, and a plan to ensure that subgrantees
limit their administrative costs. The non-state application would
include a similar services plan, an allocation process to eligible
projects, an administering agency designation, Area Agency on Aging
concurrence, and a plan to ensure that subgrantees limit their
administrative costs. The Secretaries would be required to establish
application deadlines and provide notice of award or rejection within
60 days. The conference report contains the House provision with
amendments to require applicants who apply for HUD service funds to
certify that, during the term of the contract, they would actively seek
funds for such services from other sources; and include provision for
Secretary awarding contracts within 60 days.

Selection Criteria: The House amendment contained a provision not
included in the Senate bill that would require the Secretary to select
applicants based on selection criteria established by the Secretary,
including the types of services provided, the targeting plans for
services, the relationship of the proposed service packages to the needs
of the elderly and disabled to be served, the adequacy of the service
delivery, the qualifications of the assessment committees, the
reasonableness and application of a fee schedule, and the accuracy and
adequacy of the budget. The conference report contains the House
provision with an amendment to include criteria related to
rehabilitation and renovation and the extent to which services funding
from other sources exceeds required match.

Evaluation and reporting: The House amendment contained a provision not
included in the Senate bill that would require the Secretaries to
establish, by regulation, procedures to review and evaluate the
congregate housing services programs including annual reports submitted
by contract awardees evaluating the impact and effectiveness of such
programs. The conference report contains the House provision.

Distribution of costs/costs sharing: The House amendment contained a
provision not included in the Senate bill that would require states and
localities, nonprofit sponsors, public housing agencies and Indian
tribes, where the state does not participate, to contribute 50% of the
funds to carry out the program. The Federal share of program costs would
be 40% and the elederly participants will contribute 10% of the cost of
services. However, the individual's share could be waived where income
is insufficient to meet the 10% share. In-kind match would be limited
to 10% of the total match and a state could not require a locality to
provide more than 10% of the match. For existing CHSP programs, for a
period of three years, the cost sharing formula would not apply. CHSP
grantees would maintain the share previously contributed prior to
enactment of this Act. For all other programs, if the elderly residents
could not contribute the full 10% share, the shortfall would be split
evenly between the contract recipient and the federal government. The
conference report contains the House provision with an amendment to
encourage recipients to seek sources of non-HUD funding for services.
The conference report would also direct HUD to work with the Department
of Health and Human Services to identify such existing sources, and, if
appropriate, recommend new sources. A match would be required for
rehabilitation if residual receipts are available.

Prohibition of substitution of funds: The House amendment contained a
provision not included in the Senate bill that would require the
contract recipient to maintain their contributions to providing services
to the amount contributed prior to application under this Act. The
conference report contains the House provision.

Distribution in participation: The House amendment contained a provision
not included in the Senate bill that would permit the Secretary to renew
assistance for any contract recipient that terminates a contract under
this subsection before the expiration of the full term of the contract,
to the extent that subsequent commitments have not been made for amounts
reserved under the contract; and the Secretary concerned could, at any
time after termination of the existing contract and before renewal of
assistance under the contract reallocate the remaining funds to eligible
recipients which apply. The conference report does not contain the House
provision.

New participation: The House amendment contained a provision not
included in the Senate bill that would prohibit the Secretary upon
termination of any contract with any unit of general local government
or local nonprofit housing sponsor, from renewing such contract (or
entering into any new contract for assistance) if the State in which the
local government or housing sponsor is located, is receiving assistance
under a contract with such Secretary. The applicable state agency would
give priority in distributing amounts to any unit of general local
government or nonprofit housing sponsor for which a contract is not
renewed (or that could not enter into a new contract). The conference
report does not contain the House provision. The conferees recognize
that the House provision is no longer necessary of states are no longer
the principal grantee.

Use of residents in providing services: The House amendment contained
a provision not included in the Senate bill that would require each
housing project that receives assistance under this section, to the
maximum extent practicable, to employ older and disabled adults who are
residents of the housing project to provide the services under
congregate services programs. Such individuals would be paid wages that
would not be lower than the higher of the minimum wage under the Fair
Labor Standards Act of 1938, the State or local minimum wage, or the
prevailing wage rates for persons employed in similar public
occupations. Except for wages paid to provide services, the imputed
value of supportive services under a congregate services program could
not be considered as income for the purpose of determining eligibility
for or the amount of assistance or aid furnished under any Federal,
federally assisted or State program based on need. The conference report
contains the House provision.

Eligibility and priority for 1978 Act recipients: The House amendment
contained a provision not included in the Senate bill that would,
notwithstanding any other provision of this section, allow any public
housing agency, housing assisted under Section 202 of the Housing Act
of 1959, or nonprofit corporation that was receiving assistance under
a contract under the Congregate Housing Services Act of 1978 on the date
of the enactment of this section to continue to receive assistance under
existing contracts until they expire and to be given priority for
funding after the contract expiration. The conference report contains
the House provision with an amendment which deletes distinctions related
to States.

Administrative cost limitation: The House amendment contained a
provision not included in the Senate bill that would limit adminstrative
costs to not more than 10 percent of the sum of such assistance and the
50% matching costs. Administrative costs could not include any capital
expenses. The conference report contains the House provision.

Definitions: The House amendment contained provisions not included in
the Senate bill that would establish definitions for "activity of daily
living", "case management", "congregate housing", "disabled",
"instrumental activity of daily living", "local nonprofit housing
sponsor", "nonprofit", "older", "temporily disabled", and "unit
of general local government". The conference report contains the House
provisions with an amendment to add qualifying supportive services
definition, conforms services section (f) to this definition and deletes
"state advisory committees". (Check additional definitions)

Reports to Congress: The House amendment contained a provision not
included in the Senate bill that would require each Secretary concerned
to submit to the Congress, not less than annually, a report containing
the number and percent of eligible residents served under such programs
and the types of services provided to such residents; the number of
deinstitutionalized individuals served under the programs; a statement
of any new resources for providing services that have been developed on
the State or local level; the cost to States and projects of providing
services; a description of how effective the services are at meeting the
needs of project residents, local governments and housing sponsors, and
State governments; a statement of any changes in membership with respect
to each State advisory committee; a statement of the total amount of
fees for congregate services collected from residents in eligible
projects assisted under this section; a description of the reasons for
termination of services provided to eligible project residents; a
statement of the number of persons who previously received congregate
services who have since been institutionalized; a description of how
congregate services programs were provided in eligible housing projects
located in the poorest and most isolated areas; an evaluation of the
effectiveness of the program of providing assistance for congregate
services under this section, and a comparison of the effectiveness of
the program under this section with the HOPE for Elderly Independence
Program; any other information that the Secretary concerned considers
helpful to the Congress in evaluating the effectiveness of this section.
The conference report contains the House provision.

Submission of data to the Secretary: The House amendment contained a
provision not included in the Senate bill that would require the
Secretaries to require by regulation that the contract beneficiaries
provide appropriate and adequate data to compile in the reports to
Congress. The conference report contains the House provision with an
amendment to require date to be submitted from recipients of assistance
under this section.

Regulations: The House amendment contained a provision not included in
the Senate bill that would require the Secretaries to jointly issue any
regulations necessary to carry out this section within 90 days of
enactment. The conference report contains the House provision.

Authorization of appropriations: The House amendment authorized
$6,002,000 for the existing congregate services housing program in FY91.
It would prohibit new grants or loans after October 1, 1990. The House
amendment also authorized $11,244,000 to carry out the revised
congregate housing services program in FY 1991, to be allocated
proportionately between the two Secretaries according to their
respective numbers of assisted units and their respective eligible
elderly residents. The sums would remain available until expended. The
Senate bill authorized $50,000,000 in FY91 and $52,000,000 in FY92 for
Project Retrofit. The conference report authorizes $25,000,000 for the
revised congregate housing services program in FY91 and $26,100,000 in
FY92.

Supplemental assistance: The Senate bill contained a provision not
included in the House amendment that would authorize the Secretary to
reserve not more than 5% of the funds under this section in each fiscal
year to supplement grants to maintain adequate service levels in out
years. The conference report contains the Senate provision.

HOPE for elderly independence

Purpose: The House amendment contained a provision that would establish
a demonstration program to test the effectiveness of combining housing
certificates and vouchers with supportive services to assist frail
elderly individuals to continue to live independently. This
demonstration program would terminate 5 years from the date of the
enactment of this Act. The Senate bill contained a provision that would
be similar except it would not include certificates. The conference
report contains the House provision with an amendment changing
"individuals" to "persons".

Authority:  The House Amendment contained a provision that would permit
the Secretary to enter into contracts with public housing agencies to
provide Section 8 housing assistance, both certificates and vouchers.
As part of the demonstration, the Secretary could also provide for
supportive services in connection with existing contracts for vouchers
and certificates.  The Senate bill contained a similar provision except
that only vouchers could be used.  It would require the Secretary to set
aside not more than 1,500 incremental rental vouchers for the purpose of
carrying out this demonstration but would not include individuals
currently receiving Section 8 contracts in the demonstration.  The
conference report contains the House provision with an amendment
limiting housing assistance provided to a total of 1500 certificates and
vouchers.

Funding: The House amendment contained a provision that would provide
funding for supportive services as follows: the Secretary would provide
40%, the public housing agency would ensure the provision of at least
50% from sources other than under this section, and each frail elderly
individual would pay 10% of the costs of the supportive services that
he or she receives, except that no frail elderly individual could be
required to pay an amount that exceeds 20% of his or her adjusted
income. To the extent that the 20% limitation would result in a frail
elderly person paying less than 10% of the cost of providing the
services, the remaining costs would be divided equally between the
public housing agency and the Secretary. The Secretary would provide for
the waiver of the requirement to pay costs under this subparagraph for
individuals whose income is determined to be insufficient to provide for
any payment. The Senate bill contained a provision that was similar
except that it did not limit the amount of frail elderly individual pays
in relation to the frail elderly individual's adjusted income. No waiver
of the requirement to pay costs for individuals whose income is
determined to be insufficient to provide for any payment. The conference
report contains the House provision.

Provision of services: The House amendment contained a provision that
would require each public housing agency to ensure that supportive
services appropriate to the needs of the frail elderly individuals to
be served under this demonstration are provided throughout the
demonstration period. The Senate bill contained a provision that was
similar except that it would limit the eligibility for supportive
services to persons who are receiving housing assistance under this
section. The conference report contains the House provision.

In-kind match: The House amendment contained a provision that would
allow a public housing agency to include the value of such items as the
Secretary may determine to be appropriate in determining compliance with
this section, if such items have a readily discernible market value. The
Senate bill contained a provision that was similar except that it did
not require the market value to be readily discernible. The conference
report contains the House provision.

Definitions

Demonstration period: The House amendment contained a provision not
included in the Senate bill that would define "Demonstration period"
to mean the period beginning on the date of the enactment of this Act
and ending upon the termination date under subsection (a). The
conference report contains the House provision.

Supportive services: The House amendment contained a provision that
would define "Supportive services" to mean assistance that the
Secretary determines addresses the special needs of frail elderly
individuals and provides appropriate supportive services or assists such
individuals in obtaining appropriate supportive services, including
personal care, case management services, transportation, meal services,
counseling, supervision, and other services essential for achieving and
maintaining independent living. Such services do not include medical
services. The Senate bill would be similar except the definition of
appropriate supportive services substitutes the words "personal
assistance with activities of daily living" for "personal care" and
does not include transportation or meal services. The conference report
contains the House provision.

Multi-unit demonstration: The House amendment contained a provision not
included in the Senate bill that would require the Secretary to conduct
a demonstration project to determine the feasibility of using Section
8 housing assistance to enable frail elderly persons to live
independently in multi-unit housing designed specifically for occupancy
by frail elderly individuals. The Secretary would contract with a public
housing agency to provide Section 8 housing assistance to assist elderly
persons in at least 75% of the units in a single housing project with
more than 100 units. The assistance payment contract under Section 8
would be attached to the structure for an initial term of 5 years. At
the option of the public housing agency and subject to the availability
of amounts approved in appropriations Acts, the contract could be
renewed for 3 additional 5-year terms. Rents would be subject to the
limitations in effect for the area under Section 8 for projects for the
elderly receiving loans under Section 202 programs. A reasonable portion
of the funds would be set aside for supportive services.

The House amendment also contained a provision not included in the
Senate bill that would require applications for assistance under this
demonstration project to be submitted by general local governments with
a population under 50,000. The Secretary would select one application
for funding based on the following criteria: (1) the proportion of
persons who are elderly; (2) the extent of housing constructed prior to
1940; (3) the number of elderly persons living in adjacent projects who
could utilize the services and facilities; (4) the level of State and
local contributions; and (5) the project's contribution to neighborhood
improvement. The conference report contains the House provision with an
amendment to move the demonstration as part of HOPE for Elderly
Independence and limit the demonstration to one HUD Region.

Reports: The House amendment contained a provision that would require
the Secretary to submit to Congress, at least annually, a report
evaluating the effectiveness of the demonstration, which would include
a statement of the number of persons served, the types of services
provided, the cost of providing such services, and any other information
the Secretary considers appropriate to the demonstration. The Senate
bill contained a similar provision except that it would require 2
reports to be submitted to Congress evaluating the effectiveness of the
demonstration program under this section: (1) an interim report not
later than 2 years after the date of enactment of this Act, and (2) a
final report not later than 2 years after the termination of the
demonstration period. The conference report contains the House
provision.

Authorization: The House amendment would authorize $34 million for FY
1991 for Section 8(b) and 8(o) housing assistance in connection with the
demonstrations under this section and $10 million for supportive
services. The Senate bill would authorize 1,500 vouchers and $10 million
for FY 1991. The conference report contains the House provision for FY
1991 and would authorize $35.5 million for rental assistance and $10.4
million for services for FY 1992.

Use of RTC Properties for Section 202 program: The House amendment
contained a provision not included in the Senate bill that would
authorize the purchase of properties and related facilities from the
Resolution Trust Corporation for use as Section 202 housing for the
elderly. The conference report contains the House provision amendment
with respect to the existing program in FY 1991 and to the revised
supportive housing for the elderly and supportive housing for persons
with disabilities.

Centralized Applications: The House amendment contained a provision not
included in the Senate bill that would designate a central location for
each given area where the elderly can apply for admission to all 202
developments in such area. The conference report amends the House
provision to clarify that HUD area offices would be required to provide
a listing of available 202 projects in the given area to local agencies
serving the elderly. This provision would be incorporated into the
existing program in FY 1991 and into the revised programs in FY 1992.

ECHO Units: The House amendment contained a provision not included in
the Senate bill that would expand the definition of housing in the
Section 202 program to include elder cottage housing opportunity units.
The conference report contains the House provision with an amendment
making this a demonstration program and requiring HUD to make a special
finding that the housing will be made available for very low-income
persons for the longest time feasible. The House amendment also
contained a provision not included in the Senate bill to include ECHO
units as "manufactured housing" for purposes of FHA insurance. The
conference report contains the House provision.

Service coordinators: The House amendment contained a provision not
included in the Senate bill that would provide for service coordinators
and up to 15% of the cost of supportive services including meals,
housekeeping, personal care, transportation, health related services,
and laundry for elderly to be covered by Section 8 rents in 202
developments to avoid premature institutionalization. The conference
report contains the House provision with an amendment to specify that
the option is available only to those existing projects which do not
participate in the congregate housing services program. For projects
developed under the new 202 financing mechanism, the conference report
limits the availability of service coordinators to projects principally
serving frail elderly persons. This provision would be incorporated into
the existing program in FY 1991 and into the revised programs in FY
1992.

Housing and services for the frail elderly: The House amendment
contained a provision that would set aside $10 million of the funds
provided for Section 202 development loans in FY 1991 for loans to
rehabilitate Sec. 202-financed facilities in order to meet the needs of
the frail elderly. Sec. 8 funds could be used for the employment of
service coordinators to assist frail elderly persons in such facilities.
The Senate bill provided services for frail elderly persons through the
Project Retrofit program. The conference report does not contain the
House provision. The activities envisioned by the House provision would
be included in the revised Congregate Housing Services Program.

Frail elderly definition: The House amendment contained a provision that
would define "frail elderly person" to mean a person at least 62 years
of age who is determined, according to HUD regulations, to have an
impairment that substantially impedes independent living. The conference
report does not contain the House provision.

Frail elderly report: The House amendment contained a provision not
included in the Senate bill that would require the Secretary of HUD to
review and modify periodically programs to ensure that they meet the
needs of the frail elderly and to submit an annual report to Congress.
The conference report does not contain the House provision.

Study and report regarding Section 202 housing: The House amendment
contained a provision not included in the Senate bill that would require
the Secretary to conduct a study of the Section 202 program. The
conference report does not contain the House provision.

subtitle B-supportive housing for persons with disabilities

Purposes: The Senate bill contained a provision not included in the
House amendment that would establish the purpose of the program to
enable persons with disabilities to live indepedently in housing that
is designed to accommodate their special needs of persons and which
provides supportive services. The conference report contains the Senate
provision.

General authority: The Senate bill contained a provision not included
in the House amendment that would provide assistance in the form of
capital advances and project rental assistance to private nonprofits to
finance acquisition, construction, reconstruction, moderate or
substantial rehabilitation. It could also include site improvements,
conversion, demolition, relocation and other relevant expenditures. The
conference report contains the Senate provision with an amendment to
include acquisition of property from the RTC.

General requirements: The Senate bill contained a provision not included
in the House amendment that would require the Secretary to ensure that
assistance would be provided through a range of housing options,
including group homes, independent living facilities, multifamily
housing, condos and co-ops and the housing would include appropriate
supportive services for the residents, provide opportunities for optimal
independent living and facilitate the disabled residents participation
in the community at large. The conference report contains the Senate
provision.

Capital advances: The Senate bill contained a provision not included in
the House amendment that would define capital advances as no interest
loans to be repaid only if the housing is no longer available for very
low income elderly. Advances would be limited by development cost
limitations. The conference report contains the Senate provision.

Project rental assistance: The Senate bill contained a provision not
included in the House amendment that would define project rental
assistance to include those operating costs not covered by rental
income. The annual contract rent would not exceed the initial yearly
rent roll plus utility costs, as approved by the Secretary. Adjustments
could be made to reflect reasonable increases. For intermediate care
facilities, project income would reflect assistance under Title XVI of
the Social Security Act. The conference report contains the Senate
provision.

Tenant rents: The Senate bill contained a provision not included in the
House amendment that would define tenant rents as the higher of 30% of
a person's adjusted monthly income, 10% of a person's monthly income,
the shelter rent payment as determined by welfare assistance if the
person receives such assistance, or in the case of intermediate care
facility residents, the amount determined under Title XVI of the Social
Security Act. The conference report contains the Senate provision.

Use restriction: The Senate bill contained a provision not included in
the House amendment that would require all units to be available for
occupancy by very-low income persons for at least 40 years. Repayment
of the capital advance would not be required so long as the housing
remained available for very-low-income persons with disabilities. The
conference report contains the Senate provision.

Rental assistance contract: The Senate bill contained a provision not
included in the House amendment that would establish the initial term
of contracts for project rental assistance at 20 years. The bill would
require the Secretary, to the extent approved in appropriations acts,
to extend any expiring contract for at least a five-year term. To
facilitate the extension of expiring contracts, the bill would authorize
the Secretary to make commitments to extend such contracts during the
year prior to their expiration date. The conference report contains the
Senate provision.

Application process: The Senate bill contained a provision not included
in the House amendment that would require applications to include a
description of the proposed housing; of the assistance requested; a
supportive services plan which includes the intended population's needs,
the supportive services to be offered, the experience of the applicant
or designees in providing services, the manner in which the services
would be offered including residential supervision as deemed necessary,
and the sources and funding for the supportive services; State or local
certification regarding services; assurances of site control no later
than 6 months after award of assistance certification of compliance with
the affordable housing strategy required under Section 105 of this Act;
and other information required by the Secretary. The conference report
contains the Senate provision.

Selection criteria: The Senate bill contained a provision not included
in the House amendment that would require the Secretary to establish
selection criteria to include: the capability of the sponsor; the need
for such supportive housing; the extent to which the design would meet
the needs of the intended residents; the likelihood that there would be
long-term financial support for services; the compatibility of the
design with the special supportive services needs of the disabled
residents; site control and other criteria to be determined by the
Secretary. The conference report contains the Senate provision.

Development cost limitations: The Senate bill contained a provision not
included in the House amendment that would require the Secretary to
periodically publish development costs by geographic area which reflect
the cost of construction up to codes; the cost of movables; the cost of
special design features including accessibility; congregate space; cost
of meeting energy efficiency standards; cost of improved land. The
Secretary would use current data. The conference report contains the
Senate provision with an amendment to incorporate the House provision
regarding RTC properties.

Annual adjustments: The Senate bill contained a provision not included
in the House amendment that would provide for annual adjustments in
development costs. The conference report contains the Senate provision.

Incentives: The Senate bill contained a provision not included in the
House amendment that would provide an incentive for development costs
which are less than the development cost limitations. An owner could
retain 50 percent of the savings in a special housing account. An owner
could receive 75 percent of the savings for the account if energy
efficiency features are added in the project that: exceed federally
promulgated standards; substantially reduce life cycle costs of the
housing; reduce gross rent requirements; enhance tenant comfort and
convenience. The special account could be used to supplement supportive
services funding or replacement reserves or for other purposes defined
by the Secretary. The conference report contains the Senate provision.

Nonfederal funding: The Senate bill contained a provision not included
in the House amendment that would allow the owner to contribute
nonfederal funding for amenities which could not be financed by the
advance or project rental assistance. The conference report contains the
Senate provision.

Tenant selection: The Senate bill contained a provision not included in
the House amendment that would require the owner to adopt written tenant
selection procedures acceptable to the Secretary and to notify rejected
applicants in writing promptly. An owner would be permitted to limit
occupancy to persons with similar disabilities, requiring similar
services, with the approval of the Secretary. The conference report
contains the Senate provision with an amendment to make this information
available to the appropriate local agency serving persons with
disabilities.

Technical assistance: The Senate bill contained a provision not included
in the House amendment that would require the Secretary to make
available technical assistance. The conference report contains the
Senate provision.

Civil rights compliance: The Senate bill contained a provision not
included in the House amendment that would require compliance with civil
rights laws. The conference report contains the Senate provision.

Change in sites: The Senate bill contained a provision not included in
the House amendment that would permit an owner to change sites after
award notice, provided site control is attained within one year of
award. After 1 year, the assistance would be recaptured. The conference
report contains the Senate provision.

Escrow: The Senate bill contained a provision not included in the House
amendment that would permit the Secretary to require a $10,000 escrow
deposit from owners to insure the owner's commitment to the housing. The
conference report contains the Senate provision.

Appeal: The Senate bill contained a provision not included in the House
amendment that would provide for an appeal of cancelled loan authority
within 30 days of notice receipt. The appeal would be completed within
45 days. The conference report contains the Senate provision.

Davis-Bacon: The Senate bill contained a provision not included in the
House amendment that would require Davis-Bacon wage rates for projects
for 12 or more residents except if the labor is volunteer labor. The
conference report contains the Senate provision.

Definitions: The Senate bill contained a provision not included in the
House amendment that would establish definitions for "group home",
"independent living facility", and "private nonprofit organization".
The conference report contains these Senate definitions.

Persons with AIDS as Disabled: The House amendment contained a provision
that would include persons disabled by AIDS within the definition of
handicapped. The Senate bill contained a provision that would include
persons with AIDS within the definition of "person with disabilities".
The conference report contains the Senate definition of "persons with
disabilities" with an amendment to delete the inclusion of persons with
aids. The conferees understand that persons with AIDS who would
otherwise qualify as elderly or disabled would be eligible for
assistance under the 202 program.

Authorizations: The Senate bill authorized capital advances of
$258,000,000 for fiscal year 1991, $271,000,000 for fiscal year 1992 and
$281,840,000 for fiscal year 1993. The Senate bill provided for a
revolving fund for the appropriated amounts, any proceeds for notes and
obligations, and for any repayments. The Senate bill reserved authority,
to the extent approved in appropriations acts, in the aggregate of
$234,000,000 in fiscal year 1991, $246,000,000 in fiscal year 1992, and
$255,840,000 for fiscal year 1993 for project rental assistance. The
conference report would authorize $271,000,000 for capital advances and
$246,000,000 for rental assistance in fiscal year 1992.

Effective date and applicability: The Senate bill contained a provision
not included in the House amendment that would permit sponsors of
projects under the old Sec. 202 program for which no loan has been
executed to elect to be subject to the provisions of the new Sec. 202
program. It further provides that any unobligated funds from previous
reservations would be available for use under this section. The
conference report contains the Senate provision with an amendment to
require HUD to implement the 202 revisions through notice and comment
rulemaking and to delay implementation until fiscal year 1992.

Subtitle C-Supportive Housing for the Homeless

McKinney Act Amendments

The Senate bill contained a provision that was not included in the House
amendment that would strike certain homeless housing provisions
authorized in Title IV of the Stewart B. McKinney Homeless Assistance
Act (Public Law 100-77) and replace them with a formula block grant
program for the homeless. The House addressed McKinney homeless housing
programs by authorizing various programmatic changes in a separate bill,
H.R. 3789, the Stewart B. McKinney Homeless Assistance Amendments Act
of 1990.

The conference report contains the McKinney provisions as set forth in
H.R. 3789, the McKinney reauthorization bill, with the following
amendment: (1) the McKinney homeless programmatic changes provided in
the House bill are included in the conference report both within the
restructure provisions and included in the portion of the conference
report which provides amendments to the current McKinney homeless
program; (2) the conference report reflects the Senate provisions which
restructure selected McKinney homeless housing programs by combining the
eligible activities of these existing McKinney housing programs into one
program and by making activities under these current programs eligible
as approved activities under the restructured program; (3) the programs
which are included as approved activities are the Emergency Shelter
Grants program and the Supportive Housing Demonstration program, which
includes the Transitional Housing Demonstration program and the
Permanent Housing for Homeless Handicapped Persons; (4) the conference
report also includes the Senate provisions which create a discretionary
program which is patterned after the Supplemental Assistance for
Facilities to Assist the Homeless (SAFAH) program in existing law; (5)
the conference report does not contain provisions contained in the
Senate bill which authorize the Secretary of Housing and Urban
Development to establish an allocation formula nor does the conference
report contain any of the specific provisions of the Senate bill which
provide the specific elements of a formula block grant program, such as
a percentage allocation of resources or any of the elements of the
allocation formula contained in the Senate bill; (6) the conference
report does not include within the restructure provisions, the Section
8 Moderate Rehabilitation for Single Room Occupancy (SRO) Dwellings
program, instead it is left as a separate program within existing law;
(7) the conference report authorizes the restructuring of the selected
McKinney programs only after (a) HUD has examined the feasibility of
establishing an allocation formula based on selected criteria specified
in the conference report and any other factors as determined by HUD, (b)
HUD has presented a series of alternative formulas to Congress, and (c)
legislation has been enacted which adopts an allocation formula; (8) the
conference report, however, stipulates that any restructuring of the
homeless programs will not take effect before October 1, 1992, or on
the date specified by a statute adopting a proposed allocation formula,
whichever is later; (9) the conference report requires HUD to report its
findings within eighteen months of the enactment date and to require HUD
to consult with organizations representing homeless persons, nonprofit
organizations, public housing agencies and state and local housing and
service agencies; (10) the conference report contains a provision that
was not included in either bill which provides that these McKinney
homeless provisions will not take effect if H.R. 3789, the Stewart B.
McKinney Homeless Assistance Amendments Act of 1990, is enacted before
the enactment of this Act. H.R. 3789 contains the same statutory
provisions, however similar language in each conference report has been
included in order to avoid any statutory or implementation problems
which will result within duplicative statutory language; (11) the
conference report contains the Senate bill provisions on the strategy
to eliminate unfit transient facilities, however, the conference report
does not include any references to welfare hotels as originally provided
in the Senate bill; (12) the conference report contains the Senate bill
provisions on the Shelter Plus Care programs which are authorized within
the restructure of the McKinney programs as well as authorized in
existing law for Fiscal Years 1991 and 1992; (13) the Shelter Plus Care
program provisions include various House bill provisions, such as
authorizing program assistance to families of program eligible
individuals, program matching requirements, the need to identify
community needs within the program selection requirements, the
termination of assistance, the consultation provisions with the
Secretary of Health and Human Services (HHS) and the definition of
nonprofits; and (14) the conference report provides the following
authorizations for Fiscal Years 1991 and 1992 as follows: for the
Emergency Shelter Grants program, $125 million and $138 million,
respectively; for the Supportive Housing Demonstration Program, $125
million and $150 million, respectively; for the Supplemental Assistance
for Facilities to Assist the Homeless (SAFAH) program, $30 million for
each fiscal year; for the Section 8 Moderate Rehabilitation for Single
Room Occupancy (SRO) Dwelling Program, $79 million and $82.4 million,
respectively; for the Shelter Plus Care Rental Housing Assistance
Programs, $80.4 million and $167.2 million, respectively; for the
Shelter Plus Care Single Room Occupancy (SRO) Dwelling Program, $24.8
million and $54.2 million, respectively; and (15) for the Shelter Plus
Care Section 202 Program, $18 million and $37.2 million, respectively;
the conference report authorizes such sums as may be necessary for the
restructure of the McKinney programs which is intended only as a
reference within the statutory text in order to authorize the general
provisions of the program.

The Committee is disturbed by HUD's long delay in complying with the
July 27, 1989 Oder in Lee v. Kemp. We long for HUD to promptly publish
a proposed regulation designed to make asignificant percentage of single
family inventory units available to house homeless and other low-income
people. The inventory represents an invaluable resource for providing
good housing in well-served neighborhoods for people in need; the
inventory should be used for that purpose, not for sales to speculators.

Subtitle D-Housing Opportunities for Persons With AIDS

The House amendment contained a provision not included in the Senate
bill which created the AIDS Housing Opportunity Act. The conference
report contains the House provision with the following amendment: (1)
the conference report consolidates the programs into one formula grant
program to provide States and localities with the resources and
incentives to devise long-term comprehensive strategies for meeting the
housing needs of persons with acquired immunodeficiency syndrome (AIDS);
(2) the conference report retains each program as an eligible activity
under the formula grant program; (3) the conference report does not
contain the reservation of assistance for individuals with AIDS as
provided in the House bill, however, the conferees believe that the
Department of Housing and Urban Development (HUD) should permit public
housing authorities to reserve Section 8 and public housing assistance
for persons with AIDS and this deletion is not intended to preclude
persons with AIDS from receiving such vitally-needed housing assistance;
(4) the conference report distributes program assistance in the
following manner: 90% of the funds will be distributed to entities
meeting the following (a) 75% of formula to localities that are within
a metropolitan statistical area (MSA) greater than 500,000 and have
greater than 1500 cumulative AIDS cases (not including those in eligible
localities), (b) 25% of formula to localities that exceed the annual per
capita rate of AIDS incidence for metropolitan areas.  Each such entity
shall receive funding according to their proportionate share of the
total except that each entity shall receive a minimum allocation of
$200,000 (from (a) and (b) combined) and any increase this entails from
the formula amount will be deducted from all other allocations exceeding
$200,000 on a pro rata basis ; (5) the conference report distributes 10%
of the amounts authorized for the program through HUD discretion to meet
housing needs in non-eligible states and localities and to fund special
projects of national significance; (6) the conference report requires
HUD in selecting nonparticipation jurisdictions projects to consider-(a)
relative numbers of AIDS cases and per capita AIDS incidence; (b)
housing needs of persons with AIDS in the community; (c) extent of local
planning and coordination of housing programs for persons with AIDS; and
(d) the likelihood of the continuation of state and local efforts; (7)
the conference report requires HUD in selecting projects of national
significance to consider-(a) the need to assess the effectiveness of a
particular model for providing supportive housing for persons with AIDS,
(b) the innovative nature of the proposed activity, and (c) the proposed
activity in other similar localities or nationally; and (8) the
conference report authorizes $75 million in Fiscal Year 1991 and $156.5
million in Fiscal Year 1992 for the AIDS Housing Opportunity program.

The conferees wish to clarify that the size of a grant under each
formula shall be based on the ratio of the cumulative number of AIDS
cases in a jurisdiction to the total cumulative cases of all
participating jurisdictions. The conferees also intend that rental
assistance under Section 859 shall also be considered permanent housing.

White House Conference on Homelessness

The Senate bill contained a provision not included in the House
amendment that would establish a White House Conference on Homelessness.
The conference report does not contain the Senate provision.