To reauthorize the HOPE VI program for revitalization of severely distressed public housing and to provide financial assistance under such program for main street revitalization or redevelopment projects in smaller communities to support the development of affordable housing for low-income families in connection with such projects, and for other purposes.

April 3, 2003

Mr. LEACH (for himself, Mr. WATT, Mr. DAVIS of Alabama, and Ms. HARRIS) introduced the following bill; which was referred to the Committee on Financial Services

June 19, 2003

Additional sponsors: Mr. Scott of Georgia, Mr. Shays, Mr. Simmons, Mr. Green of Texas, Mr. Frost, Ms. Kaptur, Mr. McGovern, Mr. Castle, Mr. Davis of Illinois, Mr. McHugh, Mr. Engel, and Mrs. Jones of Ohio

June 19, 2003

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on April 3, 2003]

To reauthorize the HOPE VI program for revitalization of severely distressed public housing and to provide financial assistance under such program for main street revitalization or redevelopment projects in smaller communities to support the development of affordable housing for low-income families in connection with such projects, and for other purposes.

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 `HOPE VI Program Reauthorization and Small Community Mainstreet Rejuvenation and Housing Act of 2003'.

SEC. 2. HOPE VI PROGRAM REAUTHORIZATION.

(a) SELECTION CRITERIA- Section 24(e)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended--

(1) by striking the matter preceding subparagraph (A) and inserting the following:

`(2) SELECTION CRITERIA- The Secretary shall establish criteria for the award of grants under this section and shall include among the factors--';

(2) in subparagraph (B), by striking `large-scale';

(3) in subparagraph (D)--

(A) by inserting `and ongoing implementation' after `development'; and

(B) by inserting `, except that the Secretary may not award a grant under this section unless the applicant has involved affected public housing residents at the beginning and during the planning process for the revitalization program, prior to submission of an application' before the semicolon at the end;

(4) in subparagraph (H), by striking `and' at the end;

(5) by redesignating subparagraph (I) as subparagraph (M); and

(6) by inserting after subparagraph (H) the following new subparagraphs:

`(I) the extent to which the applicant can commence and complete the revitalization plan expeditiously;

`(J) the extent to which the plan minimizes temporary or permanent displacement of current residents of the public housing site who wish to remain in or return to the revitalized community and provides for community and supportive services to residents prior to any relocation;

`(K) the extent to which the plan sustains or creates more project-based housing units available to persons eligible for public housing in markets where there is demand for the maintenance or creation of such units;

`(L) the extent to which the plan gives to existing residents priority for occupancy in dwelling units in the revitalized community; and'.

(b) DEFINITION OF SEVERELY DISTRESSED PUBLIC HOUSING- Section 24(j)(2)(A)(iii) of the United States Housing Act of 1937 (42 U.S.C. 1437v(j)(2)(A)(iii)) is amended--

(1) in subclause (I)--

(A) by inserting `or very low-income elderly or non-elderly disabled persons' before the first comma; and

(B) by striking `or' at the end;

(2) in subclause (II), by inserting `or' after the semicolon at the end; and

(3) by inserting at the end the following new subclause:

`(III) is lacking in sufficient appropriate transportation, supportive services, economic opportunity, schools, civic and religious institutions, and public services, resulting in severe social distress in the project;'.

(c) AUTHORIZATION OF APPROPRIATIONS- Paragraph (1) of section 24(m) of the United States Housing Act of 1937 (42 U.S.C. 1437v(m)(1)) is amended by inserting before the period at the end the following: `and such sums as may be necessary for each of fiscal years 2004 and 2005'.

(d) EXTENSION OF PROGRAM- Section 24(n) of the United States Housing Act of 1937 (42 U.S.C. 1437v(n)) is amended by striking `September 30, 2004' and inserting `September 30, 2005'.

SEC. 3. HOPE VI GRANTS FOR ASSISTING AFFORDABLE HOUSING THROUGH MAIN STREET PROJECTS.

(a) PURPOSES- Section 24(a) of the United States Housing Act of 1937 (42 U.S.C. 1437v(a)) is amended by adding after and below paragraph (4) the following:

`It is also the purpose of this section to provide assistance to smaller communities for the purpose of facilitating the development of affordable housing for low-income families that is undertaken in connection with a main street revitalization or redevelopment project in such communities.'.

(b) GRANTS FOR ASSISTING AFFORDABLE HOUSING DEVELOPED THROUGH MAIN STREET PROJECTS IN SMALLER COMMUNITIES- Section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v) is amended--

(1) by redesignating subsection (n) as subsection (o); and

(2) by inserting after subsection (m) the following new subsection:

`(n) GRANTS FOR ASSISTING AFFORDABLE HOUSING DEVELOPED THROUGH MAIN STREET PROJECTS IN SMALLER COMMUNITIES-

`(1) AUTHORITY AND USE OF GRANT AMOUNTS- The Secretary may make grants under this subsection to smaller communities. Such grant amounts shall be used by smaller communities only to provide assistance to carry out eligible affordable housing activities under paragraph (3) in connection with an eligible project under paragraph (2).

`(2) ELIGIBLE PROJECT- For purposes of this subsection, the term `eligible project' means a project that--

`(A) the Secretary determines, under the criteria established pursuant to paragraph (3), is a main street project;

`(B) is carried out within the jurisdiction of smaller community receiving the grant; and

`(C) involves the development of affordable housing that is located in the commercial area that is the subject of the project.

`(3) MAIN STREET PROJECTS- The Secretary shall establish requirements for a project to be consider a main street project for purposes of this section, which shall require that the project--

`(A) has as its purpose the revitalization or redevelopment of a historic or traditional commercial area;

`(B) involves investment, or other participation, by the government for, and private entities in, the community in which the project is carried out; and

`(C) complies with such historic preservation guidelines or principles as the Secretary shall identify to preserve significant historic or traditional architectural and design features in the structures or area involved in the project.

`(4) ELIGIBLE AFFORDABLE HOUSING ACTIVITIES- For purposes of this subsection, the activities described in subsection (d)(1) shall be considered eligible affordable housing activities, except that--

`(A) such activities shall be conducted with respect to affordable housing rather than with respect to severely distressed public housing projects; and

`(B) eligible affordable housing activities under this subsection shall not include the activities described in subparagraphs (B) through (F) or (J) through (L) of subsection (d)(1).

`(5) MAXIMUM GRANT AMOUNT- A grant under this subsection for a fiscal year for a single smaller community may not exceed $1,000,000.

`(6) CONTRIBUTION REQUIREMENT- A smaller community applying for a grant under this subsection shall be considered an applicant for purposes of subsection (c) (relating to contributions by applicants), except that--

`(A) such supplemental amounts shall be used only for carrying out eligible affordable housing activities; and

`(B) paragraphs (1)(B) and (3) shall not apply to grants under this subsection.

`(7) APPLICATIONS AND SELECTION-

`(A) APPLICATION- Pursuant to subsection (e)(1), the Secretary shall provide for smaller communities to apply for grants under this subsection, except that the Secretary may establish such separate or additional criteria for applications for such grants as may be appropriate to carry out this subsection.

`(B) SELECTION CRITERIA- The Secretary shall establish selection criteria for the award of grants under this subsection, which shall be based on the selection criteria established pursuant to subsection (e)(2), with such changes as may be appropriate to carry out the purposes of this subsection.

`(8) COST LIMITS- The cost limits established pursuant to subsection (f) shall apply to eligible affordable housing activities assisted with grant amounts under this subsection.

`(9) INAPPLICABILITY OF OTHER PROVISIONS- The provisions of subsections (g) (relating to disposition and replacement of severely distressed public housing), (h) (relating to administration of grants by other entities), and (i) (relating to withdrawal of funding) shall not apply to grants under this subsection.

`(10) REPORTING- The Secretary shall require each smaller community receiving a grant under this subsection to submit a report regarding the use of all amounts provided under the grant.

`(11) DEFINITIONS- For purposes of this subsection, the following definitions shall apply:

`(A) AFFORDABLE HOUSING- The term `affordable housing' means rental or homeownership dwelling units that--

`(i) are made available for initial occupancy subject to the same rules regarding level of income and income mix as dwelling units in public housing projects assisted with a grant under this section; and

`(ii) are subject to the same rules regarding occupant contribution toward rent or purchase and terms of rental or purchase as dwelling units in public housing projects assisted with a grant under this section.

`(B) SMALLER COMMUNITY- The term `smaller community' means a unit of general local government (as such term is defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)) that--

`(i) has a population of 30,000 or fewer; and

`(ii)(I) is not served by a public housing agency; or

`(II) is served by a single public housing agency, which agency administers 100 or fewer public housing dwelling units.'.

(c) ANNUAL REPORT- Section 24(l) of the United States Housing Act of 1937 (42 U.S.C. 1437v(l)) is amended--

(1) in paragraph (3), by striking `; and' and inserting `, including a specification of the amount and type of assistance provided under subsection (n);';

(2) by redesignating paragraph (4) as paragraph (5); and

(3) by inserting after paragraph (3) the following new paragraph:

`(4) the types of projects funded, and number of affordable housing dwelling units developed with, grants under subsection (n); and'.

(d) FUNDING- Section 24(m) of the United States Housing Act of 1937 (42 U.S.C. 1437v(m)) is amended by adding at the end the following new paragraph:

`(3) SET-ASIDE FOR MAIN STREET HOUSING GRANTS- Of the amount appropriated pursuant to paragraph (1) for any fiscal year, the Secretary shall provide up to 5 percent for use only for grants under subsection (n).'.

Union Calendar No. 82

To reauthorize the HOPE VI program for revitalization of severely distressed public housing and to provide financial assistance under such program for main street revitalization or redevelopment projects in smaller communities to support the development of affordable housing for low-income families in connection with such projects, and for other purposes.

June 19, 2003

END