(2) ELIGIBILITY.-To be eligible for assistance under this subsection, homebuyers and mortgages shall also meet the requirements under subsection (b) of this section, except that

(A) the certification under subsection (b)(3) shall not be required for assistance under this subsection;

(B) the provisions of subsection (b)(2) shall not apply to assistance under this section; and

(C) the aggregate income of the homebuyer and the members of the family of the homebuyer residing with the homebuyer, for the 12-month period preceding the date of the application of the homebuyer for assistance under this subsection, shall not exceed 80 percent of the median income for a family of 4 persons (as adjusted for family size) in the applicable metropolitan statistical area.

(3) LIMITATION OF ASSISTANCE.-Notwithstanding subsection (a), assistance payments for first-time homebuyers under this subsection shall be provided in the following manners:

(A) INTEREST RATE BUYDOWNS.-Assistance payments to decrease the rate of interest payable on the mortgages by the homebuyers, in an amount not exceeding—

(i) in the first year of the mortgage, 2.0 percent of the total principal obligation of the mortgage;

(ii) in the second year of the mortgage, 1.5 percent of the total principal obligation of the mortgage;

(iii) in the third year of the mortgage, 1.0 percent of the total principal obligation of the mortgage; and

(iv) in the fourth year of the mortgage, 0.5 percent of the total principal obligation of the mortgage. (B) DOWNPAYMENT ASSISTANCE.-Assistance payments to provide amounts for downpayments on mortgages by the homebuyers, in an amount not exceeding 2.5 percent of the principal obligation of the mortgage.

(3)1 AVAILABILITY.-The Trust may make assistance payments under subparagraphs (A) and (B) of paragraph (3) with respect to a single mortgage of a homebuyer.

SEC. 304. [42 U.S.C. 12853] NATIONAL HOMEOWNERSHIP TRUST FUND. (a) ESTABLISHMENT.-There is established in the Treasury of the United States a revolving fund, to be known as the National Homeownership Trust Fund.

(b) ASSETS.-The Fund shall consist of

(1) any amount approved in appropriation Acts under section. 308 for purposes of carrying out this subtitle;

(2) any amount received by the Trust as repayment for payments made under this subtitle; and

(3) any amount received by the Trust under subsection (d). (c) USE OF AMOUNTS.-The Fund shall, to the extent approved in appropriations Acts, be available to the Trust for purposes of carrying out this subtitle.

(d) INVESTMENT OF EXCESS AMOUNTS.-Any amounts in the Fund determined by the Trust to be in excess of the amounts currently required to carry out the provisions of this subtitle shall be invested by the Trust in obligations of, or obligations guaranteed as

1 So in law. Probably should be designated as paragraph (4).

to both principal and interest by, the United States or any agency of the United States.

(e) DEMONSTRATION PROGRAMS.-Using not more than $20,000,000 of any amounts appropriated for the Fund under section 308 in fiscal year 1991, the Secretary shall carry out demonstration programs for combining housing activities and economic development activities, as follows:

(1) In Milwaukee, Wisconsin, in an amount not to exceed $4,200,000, for development, rehabilitation, and revitalization of 2 vacant structures in a blighted minority neighborhood.

(2) In Washington, District of Columbia, in an amount not to exceed $10,000,000, for nonprofit neighborhood-based groups to acquire and rehabilitate vacant public and private housing for resale or rent to low- and moderate-income families and to the extent of and subject to engage in neighborhood-based economic development activities.

(3) In Philadelphia, Pennsylvania, in an amount not to exceed $1,000,000, for technical assistance and organizational support for a community development corporation that is a city-wide public/private partnership engaged in the provision of technical assistance to neighborhood community development corporations.

(4) In other areas, as the Secretary may determine.

SEC. 305. [42 U.S.C. 12854] DEFINITIONS.

For purposes of this subtitle:

(1) BOARD OF DIRECTORS.-The term "Board of Directors" or "Board" means the Board of Directors of the National Homeownership Trust under section 302(b).

(2) DISPLACED HOMEMAKER.-The term "displaced homemaker" means an individual who

(A) is an adult;

(B) has not worked full-time full-year in the labor force for a number of years, but has during such years, worked primarily without remuneration to care for the home and family; and

(C) is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.

(3) FUND.-The term "Fund” means the National Homeownership Trust Fund established in section 304.

(4) SINGLE PARENT.-The term "single parent” means an individual who

(A) is unmarried or legally separated from a spouse; and (B)(i) has 1 or more minor children for whom the individual has custody or joint custody; or

(ii) is pregnant.

(5) 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 Territory of the Pacific Islands, and any other territory or possession of the United States.

(6) TRUST.-The term "Trust" means the National Homeownership Trust established in section 302.

SEC. 306. [42 U.S.C. 12855] REGULATIONS.

The Board of Directors shall issue any regulations necessary to carry out this subtitle.

SEC. 307. [42 U.S.C. 12856] REPORT.

The Board of Directors shall submit to the Congress, not later than the expiration of the 90-day period beginning on the date of the termination of the Trust under section 310, a report containing a description of the activities of the Trust and an analysis of the effectiveness of the Trust in assisting first-time homebuyers. SEC. 308. [42 U.S.C. 12857] AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated for assistance payments under this subtitle $520,665,600 for fiscal year 1993 and $542,533,555 for fiscal year 1994, of which such sums as may be necessary shall be available in each such fiscal year for use under section 303(e). Any amount appropriated under this section shall be deposited in the Fund and shall remain available until expended, subject to the provisions of section 311.1

SEC. 309. [42 U.S.C. 12858] TRANSITION.

(a) AUTHORITY OF SECRETARY.-Upon the termination of the Trust as provided in section 310, the Secretary of Housing and Urban Development shall exercise any authority of the Board of Directors and the Trust in accordance with the provisions of this subtitle as may be necessary to provide for the conclusion of the outstanding affairs of the Trust.

(b) APPLICABILITY OF TRUST PROVISIONS.-Any assistance under this subtitle shall, after termination of the Trust, be subject to the provisions of this subtitle that would have applied to such assistance if the termination had not occurred.

(c) CERTIFICATION OF FUND TO TREASURY.-Upon a determination by the Secretary of Housing and Urban Development that the National Homeownership Trust Fund is no longer necessary, the Secretary shall certify any amounts remaining in the Fund to the Secretary of the Treasury and the Secretary of the Treasury shall deposit into the general fund of the Treasury as miscellaneous receipts any amounts remaining in the Fund.

SEC. 310. [42 U.S.C. 12859] TERMINATION.

The Trust shall terminate on September 30, 1994.

Subtitle B-FHA and Secondary Mortgage Market

HOPE HOMEOWNERSHIP PROGRAMS

EXCERPTS FROM CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT

TITLE

[Public Law 101-625; 104 Stat. 4148; 42 U.S.C. 12870 et seq.]

OPPORTUNITY FOR PEOPLE EVERYWHERE PROGRAMS

SEC. 401. [42 U.S.C. 1437aaa note] SHORT TITLE.

This title may be cited as the "Homeownership and Opportunity Through HOPE Act".

SEC. 402. [42 U.S.C. 12870] AUTHORIZATION OF APPROPRIATIONS.

(a) FISCAL YEAR 1993.-There are authorized to be appropriated for grants under this title $855,000,000 for fiscal year 1993, of which

(1) $285,000,000 shall be available for activities authorized under title III of the United States Housing Act of 1937, of which up to $4,500,000 of any amounts appropriated may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this title;

(2) $285,000,000 shall be available for activities authorized under subtitle B, of which up to $3,250,000 of any amounts appropriated may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this subtitle; 2 and

(3) $285,000,000 shall be available for activities under subtitle C, of which up to $2,250,000 of any amounts appropriated may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this subtitle. 3

Of the amounts appropriated pursuant to this subsection, up to $40,000,000, but not less than 5 percent, shall be available for activities authorized under subtitle D. Any amount appropriated pursuant to this subsection shall remain available until expended.

(b) FISCAL YEAR 1994.-There are authorized to be appropriated for grants under this title $883,641,000 for fiscal year 1994, of which

(1) $294,547,000 shall be available for activities authorized under title III of the United States Housing Act of 1937, up to $4,500,000 of which may be made available for technical assist

1 Probably should refer to "such title", i.e., title III of the United States Housing Act of 1937. 2 Probably should refer to "such subtitle", i.e., subtitle B of title IV of the Cranston-Gonzalez National Affordable Housing Act.

3 Probably should refer to "such subtitle", i.e., subtitle C of title IV of the Cranston-Gonzalez National Affordable Housing Act.

ance to potential applicants, applicants and recipients of assistance under this title;

1

(2) $294,547,000 shall be available for activities authorized under subtitle B, up to $3,250,000 of which may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this subtitle; 2 and

(3) $294,547,000 shall be available for activities under subtitle C, up to $2,250,000 of which may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this subtitle. 3

Of the amounts appropriated pursuant to this subsection, up to $41,680,000, but not less than 5 percent, shall be available for activities authorized under subtitle D. Any amount appropriated pursuant to this subsection shall remain available until expended.

(c) TECHNICAL ASSISTANCE.-Technical assistance made available under title III of the United States Housing Act of 1937 or subtitle B or subtitle C of this title may include, but shall not be limited to, training, clearinghouse services, the collection, processing and dissemination of program information useful for local and national program management, and provision of seed money. Such technical assistance may be made available directly, or indirectly under contracts and grants, as appropriate. In any fiscal year, no single applicant, potential applicant, or recipient under title III of the United States Housing Act of 1937, or subtitle B or subtitle C of this title may receive technical assistance in an amount exceeding 20 percent of the total amount made available for technical assistance under such title or subtitle for the fiscal year.

Subtitle A-HOPE for Public and Indian Housing Homeownership

SEC. 411. HOPE FOR PUBLIC AND INDIAN HOUSING HOMEOWNERSHIP.

The United States Housing Act of 1937 is amended by adding at the end the following new title:

"TITLE III 4-HOPE FOR PUBLIC AND INDIAN HOUSING HOMEOWNERSHIP

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Subtitle B-HOPE for Homeownership of

Multifamily Units

SEC. 421. [42 U.S.C. 12871] PROGRAM AUTHORITY.

(a) IN GENERAL.-The Secretary is authorized to make

Probably should refer to "such title", i.e., title III of the United States Housing Act of 1937. 2 Probably should refer to "such subtitle", i.e., subtitle B of title IV of the Cranston-Gonzalez National Affordable Housing Act.

3 Probably should refer to "such subtitle", i.e., subtitle C of title IV of the Cranston-Gonzalez National Affordable Housing Act.

Title III of the United States Housing Act of 1937, 42 U.S.C. 2437aaa et seq., contains the HOPE for public and Indian housing homeownership provisions and is set forth in part II of this compilation.