[United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
[From the U.S. Government Printing Office, www.gpo.gov]

117 STAT. 2685

Public Law 108-186
108th Congress

An Act


 
To support certain housing proposals in the fiscal year 2003 budget for
the Federal Government, including the downpayment assistance initiative
under the HOME Investment Partnership Act, 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. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Table of contents.

TITLE I--DOWNPAYMENT ASSISTANCE

Sec. 101. Short title.
Sec. 102. Downpayment assistance initiative.

TITLE II--INTERGENERATIONAL HOUSING ASSISTANCE

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Demonstration program for elderly housing for
intergenerational families.
Sec. 204. Training for HUD personnel regarding grandparent-headed and
relative-headed families issues.
Sec. 205. Study of housing needs of grandparent-headed and relative-
headed families.

TITLE III--ADJUSTABLE RATE SINGLE FAMILY MORTGAGES AND LOAN LIMIT
ADJUSTMENTS

Sec. 301. Hybrid arms.
Sec. 302. FHA multifamily loan limit adjustments.

TITLE IV--HOPE VI PROGRAM REAUTHORIZATION

Sec. 401. Short title.
Sec. 402. Hope VI program reauthorization.
Sec. 403. Hope VI grants for assisting affordable housing through main
street projects.

TITLE V--COMMUNITY DEVELOPMENT BLOCK GRANTS

Sec. 501. Funding for insular areas.

TITLE <> I--DOWNPAYMENT
ASSISTANCE

SEC. 101. SHORT TITLE. <>

This title may be cited as the ``American Dream Downpayment Act''.

SEC. 102. DOWNPAYMENT ASSISTANCE INITIATIVE.

Subtitle E of title II of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12821) is amended to read as follows:

[[Page 2686]]
117 STAT. 2686

``Subtitle E--Other Assistance

``SEC. 271. <> DOWNPAYMENT ASSISTANCE INITIATIVE.

``(a) Definitions.--In this section:
``(1) Downpayment assistance.--The term ``downpayment
assistance'' means assistance to help a family acquire a
principal residence.
``(2) Home repairs.--The term ``home repairs'' means capital
improvements or repairs that--
``(A) are identified in an appraisal or home
inspection completed in conjunction with a home
purchase; or
``(B) are completed within 1 year of the purchase of
a home, and are necessary to bring the housing into
compliance with health and safety housing codes of the
unit of general local government in which the housing is
located, including the remediation of lead paint or
other home health hazards.
``(3) Participating jurisdiction.--The term ``participating
jurisdiction'' means a State or unit of general local government
designated under section 216.
``(4) State.--The term ``State'' means any State of the
United States and the District of Columbia.

``(b) Grant Authority.--The Secretary may award grants to
participating jurisdictions to assist low-income families to achieve
homeownership, in accordance with this section.
``(c) Eligible Activities.--
``(1) In general.--
``(A) Downpayment assistance.--Subject to
subparagraph (B), grants awarded under this section may
be used only for downpayment assistance toward the
purchase of single family housing (including 1 to 4 unit
family dwelling units, condominium units, cooperative
units, and manufactured housing units which are located
on land which is owned by the manufactured housing unit
owner, owned as a cooperative, or is subject to a
leasehold interest with a term equal to at least the
term of the mortgage financing on the unit, and
manufactured housing lots) by low-income families who
are first-time home-buyers.
``(B) Home repairs.--Not more than 20 percent of the
grant funds provided under subsection (d) to a
participating jurisdiction may be used to provide
assistance to low-income, first-time home-buyers for
home repairs.
``(2) Limitations.--
``(A) Amount of assistance.--The amount of
assistance provided to any low-income families under
paragraph (1) shall not exceed the greater of--
``(i) 6 percent of the purchase price of a
single family housing unit; or
``(ii) $10,000.
``(B) Participation.--A participating jurisdiction
may not use any amount of a grant awarded under this
section to provide funding to an entity or organization
that provides downpayment assistance if the activities
of that entity or organization are financed in whole or
in part, directly or indirectly, by contributions,
service fees, or other payments from the sellers of
housing.

[[Page 2687]]
117 STAT. 2687

``(d) Formula Allocation.--
``(1) In general.--For each fiscal year, the Secretary shall
allocate any amounts made available for assistance under this
section to each State that is a participating jurisdiction in an
amount equal to a percentage of the total allocation that is
equal to the percentage of the national total of low-income
households residing in rental housing in the State, as
determined on the basis of the most recent census data compiled
by the Bureau of the Census.
``(2) Participating jurisdictions other than states.--
``(A) In general.--Subject to subparagraph (B), for
each fiscal year, of the amount allocated to each State
under paragraph (1), the Secretary shall further
allocate from such amount to each participating
jurisdiction located within such State an amount equal
to the percentage of the allocation made to the State
under paragraph (1) that is equal to the percentage of
the State-wide total of low-income households residing
in rental housing in such participating jurisdiction, as
determined on the basis of the most recent census data
compiled by the Bureau of the Census.
``(B) Limitation.--
``(i) In general.--Direct allocations made
under subparagraph (A) shall be made to a local
participating jurisdiction only if--
``(I) the participating jurisdiction
has a total population of 150,000
individuals or more, as determined on
the basis of the most recent census data
compiled by the Bureau of the Census; or
``(II) the participating
jurisdiction would receive an allocation
of $50,000 or more.
``(ii) Reversion.--Any allocation that would
have otherwise been made to a participating
jurisdiction that does not meet the requirements
of clause (i) shall revert back to the State in
which the participating jurisdiction is located.

``(e) Reallocation.--If any amounts allocated to a participating
jurisdiction under this section become available for reallocation, the
amounts shall be reallocated to other participating jurisdictions in
accordance with subsection (d).
``(f) Applicability of Other Provisions.--
``(1) In general.--Except as otherwise provided in this
section, grants made under this section shall not be subject to
the provisions of this title.
``(2) Applicable provisions.--In addition to the
requirements of this section, grants made under this section
shall be subject to the provisions of title I, sections 215(b),
218, 219, 221, 223, 224, and 226(a) of subtitle A of this title,
and subtitle F of this title.
``(3) References.--In applying the requirements of subtitle
A referred to in paragraph (2)--
``(A) any references to funds under subtitle A shall
be considered to refer to amounts made available for
assistance under this section; and
``(B) any references to funds allocated or
reallocated under section 217 or 217(d) shall be
considered to refer

[[Page 2688]]
117 STAT. 2688

to amounts allocated or reallocated under subsection (d)
or (e) of this section, respectively.

``(g) Housing Strategy.--To be eligible to receive a grant under
this section in any fiscal year, a participating jurisdiction shall
include in its comprehensive housing affordability strategy developed
under section 105 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12705) for such fiscal year--
``(1) a description of the anticipated use of any grant
received under this section;
``(2) a plan for conducting targeted outreach to residents
and tenants of public housing, trailer parks, and manufactured
housing, and to other families assisted by public housing
agencies, for the purpose of ensuring that grant amounts
provided under this section to a participating jurisdiction are
used for downpayment assistance for such residents, tenants, and
families; and
``(3) a description of the actions to be taken to ensure the
suitability of families receiving downpayment assistance under
this section to undertake and maintain homeownership.

``(h) Report.--Not <> later than June 30, 2006, the
Comptroller General of the United States shall submit a report
containing a State-by-State analysis of the impact of grants awarded
under this section to--
``(1) the Committee on Banking, Housing, and Urban Affairs
of the Senate; and
``(2) the Committee on Financial Services of the House of
Representatives.

``(i) Sunset.--The Secretary shall have no authority to make grants
under this Act after December 31, 2007.
``(j) Relocation Assistance and Downpayment Assistance.--The Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970
(84 Stat. 1894) shall not apply to downpayment assistance under this
section.
``(k) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $200,000,000 for each of fiscal
years 2004 through 2007.''.

TITLE <> II--INTERGENERATIONAL HOUSING ASSISTANCE

SEC. 201. <> SHORT TITLE.

This title may be cited as the ``Living Equitably: Grandparents
Aiding Children and Youth Act of 2003'' or the ``LEGACY Act of 2003''.

SEC. 202. <> DEFINITIONS.

In this title:
(1) Child.--The term ``child'' means an individual who--
(A) is not attending school and is not more than 18
years of age; or
(B) is attending school and is not more than 19
years of age.
(2) Covered family.--The term ``covered family'' means a
family that--
(A) includes a child; and
(B) has a head of household who is--

[[Page 2689]]
117 STAT. 2689

(i) a grandparent of the child who is raising
the child; or
(ii) a relative of the child who is raising
the child.
(3) Elderly person.--The term ``elderly person'' has the
same meaning as in section 202(k) of the Housing Act of 1959 (12
U.S.C. 1701q(k)).
(4) Grandparent.--
(A) In general.--The term ``grandparent'' means,
with respect to a child, an individual who is a
grandparent or stepgrandparent of the child by blood or
marriage, regardless of the age of such individual.
(B) Case of adoption.--In the case of a child who
was adopted, the term includes an individual who, by
blood or marriage, is a grandparent or stepgrandparent
of the child as adopted.
(5) Intergenerational dwelling unit.--The term
``intergenerational dwelling unit'' means a qualified dwelling
unit that is reserved for occupancy only by an intergenerational
family.
(6) Intergenerational family.--The term ``intergenerational
family'' means a covered family that has a head of household who
is an elderly person.
(7) Private nonprofit organization.--The term ``private
nonprofit organization'' has the same meaning as in section
202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)).
(8) Qualified dwelling unit.--The term ``qualified dwelling
unit'' means a dwelling unit that--
(A) has not fewer than 2 separate bedrooms;
(B) is equipped with design features appropriate to
meet the special physical needs of elderly persons, as
needed; and
(C) is equipped with design features appropriate to
meet the special physical needs of young children, as
needed.
(9) Raising a child.--The term ``raising a child'' means,
with respect to an individual, that the individual--
(A) resides with the child; and
(B) is the primary caregiver for the child--
(i) because the biological or adoptive parents
of the child do not reside with the child or are
unable or unwilling to serve as the primary
caregiver for the child; and
(ii) regardless of whether the individual has
a legal relationship to the child (such as
guardianship or legal custody) or is caring for
the child informally and has no such legal
relationship with the child.
(10) Relative.--
(A) In general.--The term ``relative'' means, with
respect to a child, an individual who--
(i) is not a parent of the child by blood or
marriage; and
(ii) is a relative of the child by blood or
marriage, regardless of the age of the individual.
(B) Case of adoption.--In the case of a child who
was adopted, the term ``relative'' includes an
individual who, by blood or marriage, is a relative of
the family who adopted the child.

[[Page 2690]]
117 STAT. 2690

(11) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 203. DEMONSTRATION <> PROGRAM FOR
ELDERLY HOUSING FOR INTERGENERATIONAL
FAMILIES.

(a) Demonstration Program.--The Secretary shall carry out a
demonstration program (referred to in this section as the
``demonstration program'') to provide assistance for intergenerational
dwelling units for intergenerational families in connection with the
supportive housing program under section 202 of the Housing Act of 1959
(12 U.S.C. 1701q).
(b) Intergenerational Dwelling Units.--The Secretary shall provide
assistance under this section only to private nonprofit organizations
selected under subsection (d) for use only for expanding the supply of
intergenerational dwelling units, which units shall be provided--
(1) by designating and retrofitting, for use as
intergenerational dwelling units, existing dwelling units that
are located within a project assisted under section 202 of the
Housing Act of 1959 (12 U.S.C. 1701q);
(2) through development of buildings or projects comprised
solely of intergenerational dwelling units; or
(3) through the development of an annex or addition to an
existing project assisted under section 202 of the Housing Act
of 1959 (12 U.S.C. 1701q), that contains intergenerational
dwelling units, including through the development of elder
cottage housing opportunity units that are small, freestanding,
barrier free, energy efficient, removable dwelling units located
adjacent to a larger project or dwelling.

(c) Program Terms.--Assistance provided pursuant to this section
shall be subject to the provisions of section 202 of the Housing Act of
1959 (12 U.S.C. 1701q), except that--
(1) notwithstanding subsection (d)(1) of that section 202 or
any provision of that section restricting occupancy to elderly
persons, any intergenerational dwelling unit assisted under the
demonstration program may be occupied by an intergenerational
family;
(2) subsections (e) and (f) of that section 202 shall not
apply;
(3) in addition to the requirements under subsection (g) of
that section 202, the Secretary shall--
(A) ensure that occupants of intergenerational
dwelling units assisted under the demonstration program
are provided a range of services that are tailored to
meet the needs of elderly persons, children, and
intergenerational families; and
(B) coordinate with the heads of other Federal
agencies as may be appropriate to ensure the provision
of such services; and
(4) the Secretary may waive or alter any other provision of
that section 202 necessary to provide for assistance under the
demonstration program.

(d) Selection.--The <> Secretary shall--
(1) establish application procedures for private nonprofit
organizations to apply for assistance under this section; and
(2) to the extent that amounts are made available pursuant
to subsection (f), select not less than 2 and not more than

[[Page 2691]]
117 STAT. 2691

4 projects that are assisted under section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q) for assistance under this section,
based on the ability of the applicant to develop and operate
intergenerational dwelling units and national geographical
diversity among those projects funded.

(e) Report.--Not <> later than 36 months after the
date of enactment of this Act, the Secretary shall submit a report to
Congress that--
(1) describes the demonstration program; and
(2) analyzes the effectiveness of the demonstration program.

(f) Authorization of Appropriations.--There are authorized to be
appropriated $10,000,000 to carry out this section.
(g) Sunset.--The demonstration program carried out under this
section shall terminate 5 years after the date of enactment of this Act.
SEC. 204. TRAINING <> FOR HUD PERSONNEL
REGARDING GRANDPARENT-HEADED AND RELATIVE-
HEADED FAMILIES ISSUES.

Section 7 of the Department of Housing and Urban Development Act (42
U.S.C. 3535) is amended by adding at the end the following:
``(t) Training Regarding Issues Relating to Grandparent-Headed and
Relative-Headed Families.--The Secretary shall ensure that all personnel
employed in field offices of the Department who have responsibilities
for administering the housing assistance program under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) or the supportive
housing program under section 202 of the Housing Act of 1959 (12 U.S.C.
1701q), and an appropriate number of personnel in the headquarters
office of the Department who have responsibilities for those programs,
have received adequate training regarding how covered families (as that
term is defined in section 202 of the LEGACY Act of 2003) can be served
by existing affordable housing programs.''.
SEC. 205. STUDY <> OF HOUSING NEEDS OF
GRANDPARENT-HEADED AND RELATIVE-HEADED
FAMILIES.

(a) In General.--The Secretary and the Director of the Bureau of the
Census jointly shall--
(1) conduct a study to determine an estimate of the number
of covered families in the United States and their affordable
housing needs; and
(2) submit a report to Congress regarding the results of the
study conducted under paragraph (1).

(b) Report and Recommendations.--The report required under
subsection (a) shall--
(1) <> be submitted to Congress not later
than 12 months after the date of enactment of this Act; and
(2) include recommendations by the Secretary and the
Director of the Bureau of the Census regarding how the major
assisted housing programs of the Department of Housing and Urban
Development, including the supportive housing for the elderly
program under section 202 of the Housing Act of 1959 (12 U.S.C.
1701q) can be used and, if appropriate, amended or altered, to
meet the affordable housing needs of covered families.

[[Page 2692]]
117 STAT. 2692

TITLE III--ADJUSTABLE RATE SINGLE FAMILY MORTGAGES AND LOAN LIMIT
ADJUSTMENTS

SEC. 301. HYBRID ARMS.

(a) In General.--Section 251(d)(1)(C) of the National Housing Act
(12 U.S.C. 1715z-16(d)(1)(C)) is amended by striking ``five'' and
inserting ``3''.
(b) <> Applicability.--The amendment
made by subsection (a) shall apply to mortgages executed on or after the
date of the enactment of this title.

SEC. 302. <> FHA MULTIFAMILY LOAN LIMIT ADJUSTMENTS.

(a) Short Title.--This section may be cited as the ``FHA Multifamily
Loan Limit Adjustment Act of 2003''.
(b) Maximum Mortgage Amount Limit for Multifamily Housing in High-
Cost Areas.--Sections 207(c)(3), 213(b)(2)(B)(i),
220(d)(3)(B)(iii)(III), 221(d)(3)(ii)(II), 221(d)(4)(ii)(II),
231(c)(2)(B), and 234(e)(3)(B) of the National Housing Act (12 U.S.C.
1713(c)(3), 1715e(b)(2)(B)(i), 1715k(d)(3)(B)(iii)(II),
1715l(d)(3)(ii)(III), 1715l(d)(4)(ii)(II), 1715v(c)(2)(B), and
1715y(e)(3)(B)) are each amended--
(1) by striking ``110 percent'' and inserting ``140
percent''; and
(2) by inserting ``, or 170 percent in high cost areas,''
after ``140 percent''.

(c) Catch-up Adjustments to Certain Maximum Mortgage Amount
Limits.--
(1) Section 207 limits.--Section 207(c)(3)(A) of the
National Housing Act (12 U.S.C. 1713(c)(3)(A)) is amended by
striking ``$11,250'' and inserting ``$17,460''.
(2) Section 213 limits.--Section 213(b)(2)(A) of the
National Housing Act (12 U.S.C. 1715e(b)(2)(A)) is amended--
(A) by striking ``$38,025'' and inserting
``$41,207'';
(B) by striking ``$42,120'' and inserting
``$47,511'';
(C) by striking ``$50,310'' and inserting
``$57,300'';
(D) by striking ``$62,010'' and inserting
``$73,343'';
(E) by striking ``$70,200'' and inserting
``$81,708'';
(F) by striking ``$49,140'' and inserting
``$49,710'';
(G) by striking ``$60,255'' and inserting
``$60,446'';
(H) by striking ``$75,465'' and inserting
``$78,197''; and
(I) by striking ``$85,328'' and inserting
``$85,836''.

(d) Rehabilitation and Neighborhood Conservation Housing Mortgage
Insurance.--Section 220(d)(3)(B)(iii) of the National Housing Act (12
U.S.C. 1715k(d)(3)(B)(iii)) is amended--
(1) by striking ``with respect to dollar amount limitations
applicable to rehabilitation projects described in subclause
(II),'' and inserting ``; (III)''; and
(2) by redesignating subclauses (III) and (IV) as subclauses
(IV) and (V), respectively.

[[Page 2693]]
117 STAT. 2693

TITLE <> IV--HOPE VI PROGRAM
REAUTHORIZATION

SEC. 401. <> SHORT TITLE.

This title may be cited as the ``HOPE VI Program Reauthorization and
Small Community Mainstreet Rejuvenation and Housing Act of 2003''.

SEC. 402. 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 (L);
and
(6) by inserting after subparagraph (H) the following:
``(I) the extent to which the plan minimizes
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;
``(J) the extent to which the plan sustains or
creates more project-based housing units available to
persons eligible for public housing in markets where the
plan shows there is demand for the maintenance or
creation of such units;
``(K) the extent to which the plan gives to existing
residents priority for occupancy in dwelling units which
are public housing dwelling units, or for residents who
can afford to live in other units, priority for those
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), 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:
``(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;''.

[[Page 2694]]
117 STAT. 2694

(c) Study <> of Elderly
and Disabled Public Housing Needs.--Not later than 18 months after the
date of enactment of this Act, the Comptroller General of the United
States shall submit a report to Congress regarding the extent of
severely distressed elderly and non-elderly disabled public housing, and
recommendations for improving that housing through the HOPE VI program
or other means, taking into account the special needs of the residents.

(d) 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 striking ``, 2001, and 2002'' and inserting ``through 2006''.
(e) 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, 2006''.
SEC. 403. 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 (4) 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 a
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 considered 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;

[[Page 2695]]
117 STAT. 2695

``(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 (E), (J), or (K)
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), and (h) (relating to
administration of grants by other entities), 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:

[[Page 2696]]
117 STAT. 2696

``(A) Affordable housing.--The term `affordable
housing' means rental or homeownership dwelling units
that--
``(i) are made available for initial occupancy
to low-income families, with a subset of units
made available to very- and extremely-low income
families; 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 50,000 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:
``(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:
``(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).''.

TITLE V--COMMUNITY DEVELOPMENT BLOCK GRANTS

SEC. 501. FUNDING FOR INSULAR AREAS.

(a) Definition of Insular Areas.--Section 102(a) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302(a)) is amended by
adding at the end the following:
``(24) The term `insular area' means each of Guam, the
Northern Mariana Islands, the Virgin Islands, and American
Samoa.''.

(b) Definition of Unit of General Government.--The first sentence of
section 102(a)(1) of the Housing and Community Development Act of 1974
(42 U.S.C. 5302(a)(1)) is amended--
(1) by inserting ``and'' after ``Secretary;''; and
(2) by striking ``; and the Trust Territory of the Pacific
Islands''.

[[Page 2697]]
117 STAT. 2697

(c) Statement of Activities and Review.--Section 104 of the Housing
and Community Development Act of 1974 (42 U.S.C. 5304) is amended--
(1) in subsection (a)(1)--
(A) in the first sentence--
(i) by striking ``or'' after ``State,''; and
(ii) by inserting ``or under section 106(a)(3)
by any insular area,'' after ``government,''; and
(B) in the second sentence--
(i) by striking ``and in the case of'' and
inserting a comma; and
(ii) by inserting ``and insular areas
receiving grants pursuant to section 106(a)(3),''
after ``106(d)(2)(B),'';
(2) in subsection (e)(1), by striking ``section 106(b) or
section 106(d)(2)(B)'' and inserting ``subsection (a)(3), (b),
or (d)(2)(B) of section 106''; and
(3) in subsection (m)--
(A) in paragraph (1), by inserting ``(a)(2),'' after
``under subsection''; and
(B) in paragraph (2), by striking ``government--''
and inserting ``government other than an insular area--
''.

(d) Allocation and Distribution of Funds.--Section 106(a) of the
Housing and Community Development Act of 1974 (42 U.S.C. 5306(a)) is
amended--
(1) in the first sentence of paragraph (1)--
(A) by striking ``an appropriation Act'' and
inserting ``appropriation Acts''; and
(B) by striking ``in any year'' and inserting ``for
such fiscal year'';
(2) in paragraph (2), by inserting ``under paragraph (1) and
after reserving such amounts for insular areas under paragraph
(2)'' after ``tribes'';
(3) in paragraph (3), by striking ``paragraphs (1) and (2)''
and inserting ``paragraphs (1), (2), and (3)'';
(4) by redesignating paragraphs (2) and (3) (as so amended)
as paragraphs (3) and (4); and
(5) by inserting after paragraph (1) the following:

``(2) For each fiscal year, of the amount approved in appropriation
Acts under section 103 for grants for such fiscal year (excluding the
amounts provided for use in accordance with section 107), the Secretary
shall reserve for grants to insular areas $7,000,000. The Secretary
shall provide for distribution of amounts under this paragraph to
insular areas on the basis of the ratio of the population of each
insular area to the population of all insular areas. In determining the
distribution of amounts to insular areas, the Secretary may also include
other statistical criteria as data become available from the Bureau of
the Census, but only if such criteria are contained in a regulation
promulgated by the Secretary after notice and public comment.''.
(e) Conforming Amendment.--The first sentence of section 106(d)(1)
of the Housing and Community Development Act of 1974 (42 U.S.C.
5306(d)(1)) is amended by striking ``paragraphs (1) and (2)'' and
inserting ``paragraphs (1), (2), and (3)''.
(f) Special Purpose Grants.--Section 107 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5307) is amended--
(1) in subsection (a)(1)--
(A) by striking subparagraph (A); and

[[Page 2698]]
117 STAT. 2698

(B) by redesignating subparagraphs (B) through (H)
as subparagraphs (A) through (G), respectively; and
(2) in subsection (b)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (7) as
paragraphs (1) through (6), respectively.

(g) Regulations.--The <> Secretary of Housing and Urban Development shall issue
regulations to carry out the amendments made by this section, which
shall take effect not later than the expiration of the 90-day period
beginning on the date of the enactment of this Act.

Approved December 16, 2003.

LEGISLATIVE HISTORY--S. 811 (H.R. 1276) (H.R. 1614):
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HOUSE REPORTS: Nos. 108-164 accompanying H.R. 1276 and 108-165
accompanying H.R. 1614 (both from Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 149 (2003):
Nov. 24, considered and passed Senate.
Dec. 8, considered and passed House.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
Dec. 16, Presidential remarks.