[Congressional Bills 103th Congress] [From the U.S. Government Publishing Office] [H.R. 4735 Introduced in House (IH)] 103d CONGRESS 2d Session H. R. 4735 To amend section 14 of the United States Housing Act of 1937 to authorize public housing agencies to use comprehensive modernization grant amounts to leverage amounts to replace and modernize public housing. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES July 13, 1994 Mr. Rush introduced the following bill; which was referred to the Committee on Banking, Finance and Urban Affairs _______________________________________________________________________ A BILL To amend section 14 of the United States Housing Act of 1937 to authorize public housing agencies to use comprehensive modernization grant amounts to leverage amounts to replace and modernize public housing. 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 ``Public Housing Funding Flexibility Act of 1994''. SEC. 2. AUTHORITY FOR PUBLIC HOUSING AGENCIES TO LEVERAGE AMOUNTS FOR REPLACEMENT AND MODERNIZATION. Section 14 of the United States Housing Act of 1937 (42 U.S.C. 1437l) is amended by adding at the end the following new subsection: ``(q) Authority for Public Housing Agencies to Leverage Amounts for Replacement and Modernization.-- ``(1) General authorization.--The Secretary may, upon such terms and conditions as the Secretary may prescribe, authorize a public housing agency (or a partnership including a public housing agency) to use grants provided under subsection (b) to leverage amounts which shall be used for financing housing to replace existing public housing dwelling units or for modernization of public housing, but only if the agency submits to the Secretary a plan for such leveraging that is approved by the Secretary. ``(2) Requirements.--The Secretary may approve a plan for leveraging under paragraph (1) only if the Secretary determines that-- ``(A) the public housing agency has the ability to use the leveraged amounts effectively, directly or through contract management; ``(B) of any land owned by the public housing agency upon the approval of the plan that is subject to the plan, and any land to be acquired by the agency under the plan, a portion equivalent in area to the portion used under the plan for providing housing to replace public housing dwelling units in accordance with section 18 is subject to binding covenants or commitments sufficient to ensure that the land will be used permanently for housing reserved for occupancy by low- and very low-income families; ``(C) any modernization to be carried out under the plan complies with the modernization plan submitted under this section by the public housing agency and any replacement of public housing dwelling units to be carried out under the plan complies with the requirements of section 18; ``(D) the plan provides permanent financing commitments from a sufficient number of additional sources, which may include banks and other conventional lenders, State housing finance agencies, secondary market entities, and other financial institutions; ``(E) the public housing agency submitting the plan has an acceptable rate of obligation of assistance provided under this section; and ``(F) the plan complies with any other criteria that the Secretary may establish. ``(3) Obligation limits.-- ``(A) Per pha.--The aggregate outstanding principal amount leveraged under this subsection by a public housing agency may not at any time exceed 5 times the amount of the most recent grant for a fiscal year provided under this section for comprehensive modernization. ``(B) For all pha's.--The aggregate outstanding principal amount leveraged under this subsection by all public housing agencies may not, in any single fiscal year, exceed $2,000,000,000. ``(4) Use of comprehensive modernization grants and operating revenues.--Notwithstanding any other provision of this title, a public housing agency for which a plan is approved under this subsection may use amounts provided under this section to the agency for comprehensive modernization and amounts provided under section 9 to the agency for operating subsidies (including program income derived therefrom) for the payment of principal, interest, and fees due on any loans obtained pursuant to the plan. ``(5) Reports.--The Secretary shall submit a report to the Congress annually regarding the activities under plans for leveraging approved under this subsection and the status of loans, financing, and investments obtained under such plans.''. <all>