Department of Housing and Urban Development Reform Act of 1989

Department of Housing and Urban Development Reform Act of 1989 - Title I: Reforms to Department of Housing and Urban Development - Subtitle A: Ethics - Amends the Housing and Community Development Act of 1974 to require the Department of Housing and Urban Development (HUD) to allocate certain housing assistance on a need-based formula.

Requires the Secretary of HUD to make public: (1) notice of assistance availability; (2) application procedures; (3) selection criteria; and (4) funding decisions.

Requires certain HUD assistance applicants to provide specified disclosures, and disclosure updates, including: (1) other governmental assistance; (2) interested parties; and (3) expected fund sources and uses. Establishes administrative remedies and civil money penalties for related violations.

Amends the Department of Housing and Urban Development Act to prohibit any HUD officer or employee from making advance disclosure of a funding decision. Establishes administrativve remedies, civil money penalties, and criminal penalties for violations of such prohibition.

Amends the Housing and Community Development Act of 1974 to permit up to five percent of the fair share formula to be reserved for the headquarters reserve. Limits reserve categories to: (1) unforeseen housing needs caused by disasters; (2) housing needs caused by other emergencies; (3) housing needs resulting from litigation; and (4) housing in support of desegregation efforts.

Replaces the community development block grant (CDBG) discretionary fund with special purpose grants.

Amends the Department of Housing and Urban Development Act to require that all HUD regulation and handbook waivers be in writing and specify the grounds for waiver.

Authorizes the Secretary to impose civil money penalties on mortgagees or lenders for specified violations.

Amends the National Housing Act to authorize the Secretary to impose civil money penalties on multifamily mortgagors for specified violations.

Amends the Housing Act of 1959 to authorize the Secretary to impose civil money penalties on housing for the elderly or handicapped program mortgagors for specified violations.

Amends the National Housing Act to authorize the Secretary to impose civil money penalties on Government National Mortgage Association (GNMA) issuers for specified violations.

Amends the Interstate Land Sales Full Disclosure Act to authorize the Secretary to impose civil money penalties on land developers for specified violations.

Amends the Department of Housing and Urban Development Act to require expenditure reporting and registration of consultants, lobbyists, and others attempting to influence HUD decisions. Establishes civil money penalties for reporting violations.

Subtitle B: Management Reform - Amends the Department of Housing and Urban Development Act to establish in HUD: (1) a Chief Financial Officer to serve as the Secretary's principal financial management advisor; and (2) a Federal Housing Administration (FHA) Comptroller.

Amends the Housing and Urban Development Act of 1970 to authorize appropriations for program evaluation and monitoring.

Amends the Department of Housing and Urban Development Act to provide for expedited congressional review of HUD rulemaking.

Amends the National Housing Act to permit HUD to insure section 235 (lower income homeownership) refinanced mortgages.

Amends the Housing and Community Development Act of 1974 to authorize the Secretary to impose civil penalties or revoke the conveyance of urban homestead properties conveyed or used improperly.

Amends the United States Housing Act of 1937 with regard to the moderate rehabilitation program to: (1) limit assistance to only projects of 100 units or less; (2) require specified minimum expenditures; (3) base assistance on a competitive formula; and (4) consider certain tax credits in assistance determinations.

Subtitle C: Federal Housing Administration Reforms - Amends the National Housing Act to require the Secretary to make available annually to the public an audited financial statement of the insurance funds established under such Act.

Requires credit reviews under standards prescribed by HUD of persons acquiring FHA-mortgaged properties at any time during the life of the mortgage.

Repeals title X (mortgage insurance for new communities land development) of the National Housing Act.

Establishes civil money penalties for improper dealer-loan broker participation in the origination of property improvement loans.

Establishes specified notification requirements with regard to suspended mortgagees.

Requires mortgagees to maintain foreclosed FHA properties until conveyance.

Requires: (1) the Secretary to conduct a study and report to the Congress concerning the feasibility of making HUD properties available to low-income persons whose homes were destroyed in 1989 by Hurricane Hugo or the Loma Prieta earthquake; and (2) the Secretary of Agriculture to conduct similar activities with regard to Farmers Home Administration properties.

Requires the Secretary to report to the Congress with regard to improvements in the direct endorsement program.

Requires the Secretary to: (1) review the capital adequacy of mortgage co-insurers by January 15 and July 15 of each year; (2) report to the appropriate congressional committees; and (3) report to the Congress with regard to the disposition of co-insured HUD property.

Authorizes HUD to contract with private companies for FHA financial management support.

Establishes within FHA: (1) an Advisory Board; and (2) a Mortgagee Review Board.

Requires FHA and GNMA coordination in instances of mortgagee withdrawal from program eligibility.

Requires the Secretary to prescribe FHA property appraisal standards.

Eliminates private investor-owners from the FHA single family mortgage insurance program. Retains program eligibility for public and nonprofit investor-owners.

Title II: Housing Preservation - Amends the Emergency Low Income Housing Preservation Act of 1987 to extend through September 30, 1990, the limitation on mortgage prepayments.

Amends the National Housing Act to make public entities eligible for mortgagee-landlord interest reduction payments under the rental and cooperative lower income housing program. Permits such entities to obtain insured project acquisition loans.

Authorizes the Secretary to take appropriate action to avoid foreclosure where rental assistance cannot be extended for the full term of the housing contract.

Amends the Housing and Community Development Amendments of 1978 to require the Secretary to report to the Congress with regard to the management and preservation of HUD-held properties.

Requires the Secretary to: (1) conduct a study and report to the Congress with regard to the physical renovation needs of the federally-assisted multifamily housing inventory; and (2) report to the Congress with regard to the distressed multifamily property disposition project under the Housing and Community Development Act of 1987.

Amends the Housing Act of 1949 to prohibit prepayment of rural housing loans entered into after enactment of this Act.

Authorizes the Secretary of Agriculture to guarantee equity loans for new rural housing under specified conditions.

Title III: Housing Program Extensions and Changes - Amends the National Housing Act to extend the flexible subsidy program through FY 1991.

Amends the United States Housing Act of 1937 to extend the terms of public housing ceiling rents to five years.

Amends the Housing Act of 1949 to extend the due date for a report on housing subdivision approval practices of HUD, the Department of Agriculture, and the Department of Veterans Affairs.

Title IV: Rural Housing - Amends the Housing Act of 1949 with regard to rural housing to require the Secretary of Agriculture to make public: (1) notice of assistance availability; (2) application procedures; (3) selection criteria; and (4) funding decisions.

Requires certain assistance applicants to provide specified disclosures, and disclosure updates, including: (1) other governmental assistance; (2) interested parties; and (3) expected fund sources and uses. Regulates lobbyists and consultants. Establishes administrative remedies and civil money penalties for related violations.

Provides for the reuse of rural housing loans.

Title V: National Commission on Severely Distressed Public Housing - Establishes the National Commission on Severely Distressed Public Housing which shall: (1) identify severely distressed public housing projects; (2) evaluate alternative strategies to alleviate such conditions; (3) develop a national action plan; and (4) report to the Secretary and to the Congress.

Authorizes FY 1990 and 1991 appropriations.

Title VI: National Commission on Native American, Alaska Native, and Native Hawaiian Housing - Establishes the National Commission on American Indian, Alaska Native, and Native Hawaiian Housing which shall: (1) evaluate current housing problems facing these groups; (2) evaluate alternative strategies to improve housing conditions; (3) develop an action plan; and (4) report to the Secretary and to the Congress.

Authorizes FY 1990 and 1991 appropriations.

Title VII: Miscellaneous - Nullifies State laws permitting single family mortgagors to redeem foreclosed properties under the rehabilitation loan program of the Housing Act of 1964.

Amends the Housing and Community Development Act of 1974 to eliminate Indian tribes from the definition of nonentitlement communities. Reserves up to one percent of CDBG grants for Indian tribes. Administers such grants through HUD's Office of Indian and Alaska Native Programs.

Title VIII: Section 8 Rent Adjustments - Sets forth the formula to be used to determine retroactive annual rent adjustments (to be paid over three years) under section 8 of the United States Housing Act of 1937 until the Secretary issues new comparability regulations. Requires HUD to study and report to the Congress with regard to alternative rent adjustment methods.