H.R. 3208 — Recycling of Existing Assets for Cost-Effective Housing Act of 1989

 
HR 3208 IH
101st CONGRESS
1st Session
 H. R. 3208
To authorize the Secretary of Housing and Urban Development to make grants
to States to establish revolving funds to assist low- and moderate-income
homebuyers and renters.
IN THE HOUSE OF REPRESENTATIVES
August 4, 1989
Mr. VENTO introduced the following bill; which was referred to the Committee
on Banking, Finance and Urban Affairs
A BILL
To authorize the Secretary of Housing and Urban Development to make grants
to States to establish revolving funds to assist low- and moderate-income
homebuyers and renters.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Recycling of Existing Assets for Cost-Effective
  Housing Act of 1989'.
SEC. 2. AUTHORITY TO MAKE GRANTS TO STATES.
  (a) IN GENERAL- Subject to the provisions of this Act, the Secretary of
  Housing and Urban Development may make grants to States for use by State
  housing finance agencies to establish revolving funds to assist in providing
  housing for low- to moderate-income homebuyers and renters.
  (b) APPLICATIONS- The Secretary shall prescribe the form and procedures
  for States to apply for grants under this Act.
  (c) FAIR SHARE ALLOCATION- Grants under this Act shall be allocated among
  the States on the basis of the formula prescribed by the Secretary under
  section 213(d)(1) of the Housing and Community Development Act of 1974
  (42 U.S.C. 1439(d)(1)).
  (d) MATCHING REQUIREMENT- The Secretary may not make a grant under this
  Act to any State in an amount in excess of the amount that the State
  certifies, as the Secretary shall require, that the State will contribute
  from non-Federal sources to the revolving fund established by the State
  housing finance agency under section 3 for the purposes of this Act. The
  value of any administrative or other costs incurred by the State housing
  finance agency in carrying out this Act shall be considered as contributions
  to the fund for the purposes of this subsection.
SEC. 3. STATE REVOLVING FUNDS.
  (a) ESTABLISHMENT- Any State that receives a grant under this Act shall,
  through the State housing finance agency of the State, establish a revolving
  fund according to this section.
  (b) USE- Any amounts in the fund shall be available only for the following
  purposes:
  (1) HOMEBUYER LOANS- For making loans to low- and moderate-income families
  for the acquisition and rehabilitation of any property eligible under
  section 4 that is a single-family home and will serve as the primary
  residence of the family. In making such loans, preference shall be given
  to first-time homebuyers and lower-income families.
  (2) GRANTS AND LOANS FOR MULTIFAMILY DWELLINGS- For making grants to
  nonprofit agencies, local governments, and public housing agencies for the
  development and rehabilitation of any property eligible under section 4
  that is a multifamily dwelling and loans to such organizations for purchase
  of such properties, subject to the following requirements:
  (A) Of the units of any dwelling assisted with a grant or loan under this
  paragraph, more than 50 percent shall be made available for rental only
  by low- and moderate-income families for not less than the 30-year period
  beginning on the date that units in the dwelling are first made available
  for occupancy after a grant or loan under this paragraph is made. In
  renting such units, preference shall be given to lower-income families.
  (B) Any nonprofit agency, local government, or public housing agency that
  provides multifamily housing assisted with a grant or loan under this
  paragraph shall provide for rent charges for each unit of the dwelling
  based on the income-level of the resident of the unit.
  (3) NONCONVEYANCE- As a condition of receiving assistance from a revolving
  fund under this section, a low- or moderate-income homebuyer or nonprofit
  agency, local government, or public housing agency shall agree not to
  convey the property for the 5-year period beginning on the date that such
  assistance is received (subject to the provisions of subsection (d)(2)),
  except under such emergency standards as may be prescribed by the Secretary.
  (c) CREDITS- A revolving fund established under this Act shall be credited
  with the following:
  (1) GRANTS- Any amounts received from a grant under section 2.
  (2) MATCHING AMOUNTS- Any matching amounts under section 2(d).
  (3) REPAYMENTS- Any repayments or amounts recaptured under subsection (d).
  (4) OTHER- Any other amounts that may be dedicated to the fund.
  (d) REPAYMENTS AND RECAPTURED AMOUNTS-
  (1) LOAN REPAYMENTS- Any loans made from a revolving fund under subsection
  (b) shall be repaid to the fund according to terms established by the
  State finance housing agency and the borrower.
  (2) PAYMENT OF PROCEEDS AND REPAYMENT OF GRANTS UPON SALE OF PROPERTY- If
  the owner of any property for which assistance is made from a revolving
  fund under this section conveys the property contrary to an agreement
  under subsection (b)(3), the owner shall transfer to the revolving fund
  from which the assistance was made the following amount:
  (A) For any nonprofit agency, local government, or public housing agency
  that receives a grant under subsection (b)(2), the percentage of the amount
  of the grant according to the amount of time after the grant was made that
  the conveyance occurs, as determined in the following table:
  Number of months
--
  after grant
--Percentage of
  was made that
--grant amount
  conveyance
--transferred to
  occurs
--revolving fund
0-6
--100
7-12
--90
13-18
--80
19-24
--70
25-30
--60
31-36
--50
37-42
--40
43-48
--30
49-54
--20
55-60
--10
  (B) For any nonprofit agency, local government, public housing agency,
  or low- or moderate-income family who receives a loan under subsection
  (b), the percentage of the amount of the consideration received for the
  property according to the amount of time after the assistance was made
  that the conveyance occurs, as determined in the following table:
  Number of month
--Percentage of con-
  after assistance
--sideration received
  was made that
--for property
  conveyance
--transferred to
  occurs
--revolving fund
0-6
--100
7-12
--90
13-18
--80
19-24
--70
25-30
--60
31-36
--50
37-42
--40
43-48
--30
49-54
--20
55-60
--10
  (C) The Secretary shall provide for the payment of interest on any amount
  required by this paragraph to be transferred to a revolving fund. The
  interest shall accrue from the date that the assistance was made to the
  owner of the property and shall be in an amount determined by the Secretary.
SEC. 4. ELIGIBLE PROPERTIES.
  Low- and moderate-income families and nonprofit agencies, local governments,
  and public housing agencies may purchase, develop, or rehabilitate with
  assistance from any revolving fund established under this Act by a State
  housing finance agency only dwellings that meet the following requirements:
  (1) TYPE- The dwelling shall be an unoccupied single- or multifamily
  dwelling.
  (2) OWNERSHIP- The dwelling shall be owned or controlled by any of the
  following:
  (A) The Department of Housing and Urban Development.
  (B) The Department of Veterans Affairs.
  (C) The Federal Deposit Insurance Corporation.
  (D) The Federal Savings and Loan Insurance Corporation (or any other entity
  that is authorized by law to manage the affairs of the Federal Savings
  and Loan Insurance Corporation upon the dissolution of such Corporation).
  (E) The Farmers Home Administration.
  (F) The Federal National Mortgage Corporation.
  (G) The Federal Home Loan Mortgage Corporation.
  (H) Any other department or agency of the Federal Government or any
  corporation or other similar entity chartered, owned, or controlled by
  the Federal Government.
  (3) VALUE- The dwelling has an appraised value that does not exceed the
  following:
  (A) In the case of a 1- to 4-family dwelling, the applicable maximum dollar
  amount limitation under section 203(b)(2) of the National Housing Act.
  (B) In the case of a dwelling with more than 4 units, the applicable
  maximum dollar amount limitation under section 221(d)(3)(ii) of the National
  Housing Act for elevator-type structures (without regard to any increase
  under such section for high-cost areas).
SEC. 5. LISTING OF ELIGIBLE PROPERTIES.
  (a) IN GENERAL- The Secretary shall make available upon request by any
  State housing finance agency or unit of general local government a list
  of eligible properties owned or controlled by entities under section 4(2)
  that are located within the State or unit of general local government.
  (b) CONSULTATION- The Secretary shall consult with the entities under section
  4(2) not less than monthly to provide a current listing under subsection (a).
SEC. 6. OTHER PROPERTY DISPOSAL LAWS.
  This Act may not be construed to make available for acquisition under this
  Act any dwelling that may not be made publicly available by any entity under
  section 4(2) under applicable laws relating to disposal of such dwelling.
SEC. 7. REPORTS.
  (a) STATE HOUSING FINANCE AGENCIES- Any State that receives a grant under
  this Act shall submit to the Congress, not less than annually, a report
  of the State housing finance agency containing a listing of any properties
  purchased, developed, or rehabilitated with assistance from the revolving
  fund established with the amounts received from grants under this Act
  and information regarding the financing for such purchases, development,
  and rehabilitation.
  (b) SECRETARY- The Secretary shall submit to the Congress, not less than
  annually, a report regarding the grant program under this Act, which
  shall include a summary of the reports by State housing finance agencies
  under subsection (a) and a listing of any properties of any entity under
  section 4(2) for which assistance has been made through a revolving fund
  established pursuant to this Act.
SEC. 8. GAO AUDIT.
  The Comptroller General of the United States shall audit the activities
  of the Secretary under this Act not less than annually under any rules
  and regulations prescribed by the Comptroller General. Representatives of
  the General Accounting Office shall have access to all books, accounts,
  reports, and files and all other papers and property belonging to or in use
  by the Secretary pertaining to such activities and necessary to facilitate
  the audit.
SEC. 9. DEFINITIONS.
  For purposes of this Act:
  (1) FIRST-TIME HOMEBUYER- The term `first-time homebuyer' means any
  individual who (and whose spouse) has not had any present ownership in
  a principal residence during the 3-year period ending on the date of the
  purchase by the individual of any principal residence with assistance from
  a revolving fund under this Act.
  (2) LOW- OR MODERATE-INCOME FAMILY-  The term `low- or moderate-income
  family' means families and individuals whose incomes do not exceed 115
  percent of the median income for the area involved, as determined by the
  Secretary with adjustments for smaller and larger families, except that the
  Secretary may establish income ceilings higher or lower than 115 percent of
  the median for the area on the basis of the findings of the Secretary that
  such variations are necessary because of prevailing levels of construction
  costs or unusually high or low family incomes.
  (3) LOWER INCOME FAMILY- The term `lower income family' means families and
  individuals whose incomes do not exceed 80 percent of the median income
  for the area involved, as determined by the Secretary with adjustments for
  smaller and larger families, except that the Secretary may establish income
  ceilings higher or lower than 80 percent of the median for the area on the
  basis of the findings of the Secretary that such variations are necessary
  because of prevailing levels of construction costs or unusually high or
  low family incomes.
  (4) REVOLVING FUND- The term `revolving fund' means any fund established
  by a State housing finance agency under section 3 with amounts received
  from a grant under section 2.
  (5) SECRETARY- The term `Secretary' means the Secretary of Housing and
  Urban Development.
  (6) STATE- The term `State' means the States of the United States, the
  District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
  the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa,
  the Trust Territories of the Pacific, and any other possession of the
  United States.
  (7) STATE HOUSING FINANCE AGENCY- The term `State housing finance agency'
  has the meaning given the term under section 802(b)(2)(A) of the Housing
  and Community Development Act of 1974 (42 U.S.C. 1440(b)(2)(A)).
SEC. 10. REGULATIONS.
  The Secretary may issue any regulations necessary to carry out this Act.
SEC. 11. AUTHORIZATION OF APPROPRIATIONS.
  There is authorized to be appropriated to carry out this Act $300,000,000
  for each of fiscal years 1990 and 1991. Any amounts appropriated pursuant
  to this section shall remain available until expended.
Recycling of Existing Assets for Cost-Effective Housing Act of 1989

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