Housing, Community Development, and Homelessness Prevention Act of 1987

(Measure passed House, amended, roll call #178 (285-120))

Housing, Community Development, and Homelessness Prevention Act of 1987 - Title I: Housing Assistance - Subtitle A: Programs Under United States Housing Act of 1937 - Part I: General Provisions - Amends the United States Housing Act of 1937 to increase FY 1988 budget authority for lower income housing programs, including public housing, Indian housing, elderly and handicapped housing, regular housing, and comprehensive improvemnet assistance.

Provides for public housing six-month phased-in rent increases in cases of tenant employment. Provides, for purposes of assisted housing eligibility, for a ten percent family income deduction where any member pays Social Security taxes.

Authorizes public housing agencies (PHAs) to determine, with the Secretary's approval (as an alternative to the existing schedule), monthly rents which do not exceed the maximum allowable rent contribution and do not exceed the average monthly debt service and operating expenses for similarly-sized projects. Limits such ceiling to five years per family.

Increases the percentage to 25 percent of section 8 and other public housing assistance available for other than very low income families.

Part 2: Public Housing - Amends the United States Housing Act of 1937 relating to the administration of public housing management.

Authorizes PHAs to admit persons between 50 and 62 years old (near elderly) to elderly public housing projects when there is an insufficient number of elderly persons to fill such units.

Authorizes grants for public housing and Indian housing construction and development.

Limits, as of October 1, 1987, the financing of new public housing units to PHAs that can certify: (1) that 85 percent of their existing units are maintained in compliance with section 8 quality standards, or will be in such condition upon completion; (2) that the construction will replace disposed of or demolished units, or is required by court order or by the Secretary of Housing and Urban Development; and (3) that demands for family housing exceed rental assistance program capacity.

Prohibits the Secretary from recapturing public housing reservation funds for 30 months following the date of reservation, due to the failure of a PHA to complete acquisition and begin construction or rehabilitation. Permits a PHA to make site or project changes during such period as long as such changes will not result in fewer units acquired, constructed, or rehabilitated. Extends such period for delays caused by: (1) the Secretary; (2) environmental review; (3) legal action; or (4) factors beyond the PHA's control.

Prohibits the Secretary from using as a criterion for distributing public housing development funds on Indian PHA's improvement in rent collection.

Authorizes Department of Housing and Urban Development (HUD) new construction in the neighborhood where the PHA determines such housing is needed.

Establishes review and notification requirements (including advising a tenant of alternative housing and assistance sources and of housing counseling services) that a PHA must follow before evicting a tenant for nonpayment of rent.

Makes a technical amendment with respect to public housing grievance procedures.

Authorizes grants for public housing child care. Requires the Secretary to report to the Congress within three years of enactment of this Act. Authorizes FY 1988 appropriations.

Directs the Secretary to provide payments for operating lower income housing projects through a performance funding system that establishes standards for operating costs and income projections. Authorizes FY 1988 appropriations.

Authorizes grants for comprehensive improvement assistance.

Revises the conditions of approval for project demolition applications to include requirements of: (1) one-for-one replacement, unless there is no local need for low-income housing; (2) tenant relocation payment; and (3) section 8 based or alternative based subsidies if other necessary funding is unavailable.

Authorizes a public housing comprehensive grant program. Requires recipient PHA's to: (1) develop five-year comprehensive plans; and (2) submit annual activities and expenditures statements and performance reports to the Secretary. Limits grant use to: (1) activities set forth in the comprehensive plan; (2) the preparation of such plan; and (3) correction of conditions that are immediate dangers to tenant health and safety. Requires the Secretary to: (1) submit an alternative allocation systems report to the Congress within six months of enactment of this Act; and (2) include a regional-based report of such grant projects in his annual section 8 report.

Establishes a public housing resident management program, including the establishment of, resident management corporations (RMC). Permits RMCs to retain and use excess revenues to improve the housing project. Requires RMCs to provide bonding and insurance. Provides resident management technical assistance and training for up to 15 projects. Limits such assistance to: (1) $100,000 to any one housing project; and (2) a total of not more than $2,500,000. Requires the Secretary to submit an annual program report to the Congress.

Provides public housing families with the opportunity to purchase dwelling units through an RMC. Authorizes the Secretary to provide homeownership assistance. Prohibits the eviction of a rental tenant in such a housing project which is being sold to an RMC. Requires the Secretary to provide such remaining rental tenants with housing assistance or with relocation assistance if they choose to move. Requires the Secretary to report annually to the Congress.

Forgives interest on a public housing development project for the Housing Authority of the City of Pittsburgh, Pennsylvania.

Forgives certain penalties incurred with the public housing development grant for the Bay City Housing Commission, Michigan.

Authorizes specified funds from FY 1988 public housing development budget authority to build and test a variety of public housing energy-efficient housing designs in 100 separate housing units in four different States.

Establishes a public housing comprehensive transition demonstration program in Charlotte, North Carolina, and authorizes up to ten additional program sites, to demonstrate the effectiveness of providing comprehensive services to public housing tenants to ensure their transition to private housing. Sets up such program with a two-year remediation phase and a five-year transition phase (including a full-time employment requirement). Requires the Secretary to submit an interim (two years) and final report to the Congress. Terminates such program seven years after enactment of this Act.

Part 3: Section 8 Assistance and Other Programs - Requires section 8 annual contribution contracts to provide for a specific number of certificates and vouchers and for full funding for 180 months.

Requires annual October 1 adjustments of section 8 fair market rentals. Requires separate fair market rentals for Westchester County in the State of New York.

Includes capital improvement costs in such rental adjustment determinations.

Prohibits the reduction of certain section 8 contract rents unless the project has been refinanced in a manner that reduces the debt of the owner.

Repeals the requirement that section 8 rent increases be based only on increased operating costs.

Requires owners to notify the Secretary and their tenants not less than one year before terminating section 8 assistance contracts (90 days for housing certificates and vouchers).

Permits section 8 rent adjustments if: (1) proper tenant notice is given; and (2) the rent is lower than the maximum permitted fair market rental.

Authorizes annual housing voucher adjustments.

Sets forth administrative fee provisions for section 8 certificate and voucher programs. Requires the General Accounting Office to report to the Congress by October 30, 1987, regarding the adequacy and structure of such fee system.

Provides for the portability of section 8 certificates and vouchers if the dwelling unit is within the same or contiguous metropolitan statistical area as the unit from which the family moved.

Prohibits PHAs from denying section 8 certificates and vouchers to public housing residents.

Prohibits private owners with section 8 -assisted multifamily housing projects from refusing to lease any available dwelling units at the fair market rental to a section 8 certificate or voucher holder.

Requires section 8 contracts to prohibit tenant eviction for nonpayment of rent without a prior PHA rent and subsidy assessment.

Requires a 180-month term for section 8 loan management and property disposition contracts. Permits the extension of expiring contracts or execution of new contracts if an owner agrees to provide low-income housing. Prohibits the Secretary from providing voucher assistance in carrying out such loan management program.

Permits PHAs to use up to 25 percent of section 8 assistance for project-based assistance.

Authorizes FY 1988 appropriations for: (1) rental rehabilitation; and (2) development grants. Sets rehabilitation grant limits at: (1) $5,000 per efficiency unit; (2) $6,500 for one or two bedroom units; and (3) $7,500 for three or more bedroom units. Permits such grants to be used to comply with seismic standards where applicable.

States that development grant eligibility requirements shall be those that were in effect as of October 17, 1986. Permits developers' fees to be included in grant development costs for projects selected before enactment of this Act. Limits State administrative reimbursement to ten percent. Makes State or locally-chartered neighborhood-based nonprofit organizations eligible grant recipients.

Subtitle B: Multifamily Housing Management and Preservation - Sets forth policies, goals, and program development activities to be used by the Secretary regarding certain insured mortgage prepayments in order to encourage the continued availability of safe and clean low-income housing, while at the same time respecting the rights of owners.

Directs the Secretary to review all Federal policies related to such prepayment policies and report to the Congress within 180 days after enactment of this Act. Includes within such report an evaluation of the feasibility of establishing a national nonprofit corporation to use prepayment proceeds to purchase low-income projects in order to assure their continued rental availability.

Directs the Secretary to publish a monthly State-by-State list of all projects subject to prepayment approval by the Secretary that will become eligible for prepayment during the next 12 months.

Requires owners to file a notice of intent to prepay one year before such prepayment may begin with the Secretary, the State housing authority, the tenants, and the local government. Sets forth incentives which the Secretary may use to induce an owner to retain the project as low-income housing for the longer of the term of the mortgage or an additional 20 years, including: (1) a phased in return on equity; (2) a phased in access to residual reserves; (3) a revised method of calculating equity; and (4) a rent or a subsidy increase.

Requires that subsidies recaptured from the sale of below-market interest loans insured under the National Housing Act and owned by the Government National Mortgage Association (GNMA) be used to provide additional section 8 assistance.

Amends the Housing and Community Development Amendments of 1978 to direct the Secretary to manage and dispose of multifamily projects that are delinquent, under a workout agreement, or being foreclosed, in the least costly manner and in a way that furthers the goal of preserving low- and moderate income housing.

Includes projects for which the Secretary is mortgagee-in-possession within the scope of HUD's management responsibilities.

Directs the Secretary to ensure that a private project owner contracts for management and maintenance services meeting HUD criteria.

Directs the Secretary to provide 15-year project-based section 8 contracts for low-income housing rehabilitation and preservation. Provides tenant displacement protection.

Prohibits the Secretary from selling a HUD- or GNA-owned mortgage of any subsidized or formerly subsidized project unless such project will continue to serve low-income tenants until the maturity date of the original mortgage.

Amends the National Housing Act of direct the Secretary to take into account the objective of preserving low-income projects when accepting bids for the sale of multifamily projects.

Amends the Housing and Community Development Amendments of 1978 to provide for specified tenant participation in proposed sales of multifamily project mortgages. Prohibits rental discrimination against section 8 certificate and voucher holders in such multifamily housing projects.

Prohibits the Secretary from providing troubled (multifamily) project assistance unless an owenr has applied for sufficient section 8 or other assistance to ensure the project's financial soundness and its low- or moderate-income character. Stipulates that for projects receiving troubled project assistance prior to the enactment of this Act, the agreement to house families whose income does not exceed 50 percent of the local median income shall be binding only as long as sufficient Federal, State, or local subsidies are available for such families.

Establishes in the Treasury the Flexible Subsidy Fund to provide troubled project assistance, including assistance for capital improvements.

Authorizes the Secretary to enter into a multifamily housing disposition demonstration program with the Massachusetts Housing Finance Agency. Terminates the program three years after enactment of this Act. Authorizes the Secretary to extend such program for agreements entered into during the initial three-year period. Requires the Secretary to report to the Congress within six months after such initial termination date.

Subtitle C: Multifamily Housing Preservation Loans - Authorizes the Secretary to make capital improvement loans for multifamily housing projects. Sets forth eligibility provisions. Limits loans to 80 percent of improvement expenses. Establishes in the Treasury the Multifamily Housing Preservation Fund to carry out such program. Authorizes FY 1988 appropriations.

Subtitle D: Other Housing Assistance Programs - Amends the Housing Act of 1959 to authorize FY 1988 appropriations for elderly and handicapped housing loans.

Amends the Housing and Urban Rural Recovery Act of 1983 to limit interest rates on elderly and handicapped housing loans to 9.25 percent. (Currently such limit applies only to FY 1983 and 1984 loans.) Requires the Secretary to notify a project sponsor at least 30 days prior to loan cancellation. Permits sponsor appeals. Gives loan priority to projects providing replacement housing for 100-unit or more projects owned by a PHA that was used for the elderly and scheduled to be demolished.

Terminates section 8 assistance in handicapped projects (primarily nonelderly) where contract funds are appropriated under the housing for the handicapped families program.

Amends the National Housing Act to require that any recaptured homeownership program budget authority be made available for subsequent year use.

Amends the Congregate Housing Services Act of 1978 to authorize FY 1988 appropriations. Directs the Secretary to: (1) contract with a university or research center to produce a report on Federal housing for the elderly, available assistance, and alternative housing including congregate housing; and (2) submit such report to the Congress by September 30, 1988.

Sets forth conditions (health, employment, hardship, dietary customs) under which the owner of any assisted housing for the elderly shall exempt a tenant from mandatory meal participation. Authorizes financial assistance toward participation in lieu of an exemption. Requires owners to accept food stamps as meal payment.

Amends the Housing and Community Development Act of 1980 to exempt from HUD regulations limiting alien eligibility for public housing: (1) alien families with a member who is a citizen, a legal alien resident, or an alien undergoing legalization; and (2) current housing residents. Exempts persons 62 years or older from related documentation requirements. Requires the Secretary to provide written notice and a hearing opportunity before denying or terminating assistance. Directs HUD to: (1) develop a system for verifying immigration status; and (2) reimburse PHAs for such related costs.

Authorizes the Secretary to require HUD program participants or applicants to disclose their social security or employer identification numbers.

Directs the Secretary to establish energy conservation standards for use in assisted housing development and rehabilitation projects.

Directs the Secretary to include in his annual section 8 report a report on the characteristics of families assisted under specified housing programs.

Authorizes through FY 1988 the use of excess rental charges for troubled multifamily housing projects.

Authorizes FY 1988 appropriations for the housing demonstration project. Requires the Secretary to submit a program report to the Congress by June 1, 1988.

States that Federal housing assistance shall not be considered income for purposes of other Federal assistance eligibility.

Amends the National Housing Act to increase Federal funding from 90 percent to 100 percent for State-financed rental assistance. Amends the Housing and Urban Development Act of 1965 to provide similar increases for supplemental rental assistance payments.

Makes technical changes to the National Housing Act, the United States Housing Act of 1937, the Housing Act of 1959, and the Housing and Urban Development Act of 1965.

Amends the Housing and Community Development Amendments of 1978 to provide flexible subsidy assistance for certain elderly or handicapped housing projects.

Title II: Rural Housing - Amends the Housing Act of 1949 to authorize FY 1988 appropriations for: (1) subsidized homeownership loans; (2) farmworker rental housing loans; (3) low-income and elderly subsidized rental housing loans; (4) site loans; (5) home repair loans; (6) construction defects payments; (7) repair grants; (8) farmworker rental housing grants; (9) mutual and self-help grants; (10) rental assistance payments; (11) mutual and self-help loans; and (12) prepayment plan equity purchases.

Extends authority through FY 1988 for: (1) rental assistance payment contracts; (2) supplemental rental assistance contracts; (3) rental housing loans; and (4) mutual and self-help housing grant and loan authority.

Provides that maximum income levels for rural housing programs in the Virgin Islands shall be the same as those for Guam, American Samoa, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.

Defines "very low-income families or persons" for purposes of the homeownership loan program as families or persons whose income is the higher of levels established under the Housing Act of 1937 or 50 percent of the statewide nonmetropolitan median income.

Directs the Secretary to establish rural housing escrow account procedures within 60 days of enactment of this Act.

Obligates up to ten percent of homeownership loan authority for moderate income families.

Directs the Secretary before accepting a borrower's request to prepay a rural housing loan entered into before December 21, 1979, to require the borrower to offer to sell such housing to a qualified nonprofit organization or public agency.

Directs the Secretary, to the extent provided for by appropriations, to provide a purchasing entity with financial assistance in the form of debt forgiveness or monthly payments. Limits subsequent transfers.

Exempts prepayment requests from such restrictions under specified conditions relating to adequate existing stocks of low-income housing.

Authorizes appropriations for related reimbursement of the Rural Housing Insurance Fund.

Limits transfers to not more than 5,000 dwelling units per fiscal year.

Requires local governmental consultation under the programs for insured loans and financial assistance for domestic farm labor housing.

Redefines "domestic farm labor" for purposes of the insured loan program.

Limits fees that may be applied to rural and elderly housing loans.

Requires rural rental housing loan requirements to conform with low-income tax credit eligibility requirements.

Permits rural rental housing initial operating reserves to be in the form of irrevocable letters of credit.

Extends the 10,000-20,000 population rural area classification date to September 30, 1988. Makes Pajaro, California, eligible for rural area designation.

Requires the Secretary to provide interest credit assistance to certain existing rural assistance loan borrowers whose income has increased beyond program ceilings.

Limits annual rental increases that would increase project vacancies.

Requires the Farmers Home Administration (FmHA) to implement the housing preservation grant program for rental units within 30 days of enactment of this Act.

Directs the Secretary to: (1) conduct a study of rural mortgage credit; and (2) report to the Congress by April 1, 1988.

Makes loans for manufactured homes on permanent foundations repayable over the same period as specified mortgage loans under the National Housing Act.

Makes rural housing technical amendments.

Title III: Mortgage Insurance and Secondary Mortgage Market Programs - Subtitle A: FHA Mortgage Insurance Programs - Amends the National Housing Act to extend authority through September 30, 1988, for: (1) general mortgage insurance; (2) low and moderate income and displaced families mortgage insurance; (3) homeownership for lower income families including mortgage insurance authority and housing stimulus authority; (4) mortgage co-insurance, including rental rehabilitation and development projects; (5) graduated payment and indexed mortgage insurance; (6) the demonstration mortgage reinsurance program; (7) mortgage insurance for armed forces civilian employees and defense housing for impacted areas; (8) mortgage insurance for land development; and (9) mortgage insurance for medical and dental group practice facilities.

Provides a specified FY 1988 amount for Federal Housing Administration (FHA) mortgage insurance commitments. Authorizes the Secretary to fix premium charges for FHA mortgages or loan insurance, but not more than certain percentages of principal calculated according to specified formulae.

Amends the definition of veterans, for specified mortgage insurance purposes, to require that persons who enlisted in the armed forces after September 7, 1980, or who entered active duty after October 16, 1981, have their eligibility determined in accordance with specified Federal laws.

Permits the Secretary to insure a mortgage secured by a one- to four-family dwelling, or approve of a substitute mortgagor who assumes any mortgage, only if the mortgagor is to occupy the dwelling as a principal or secondary residence. Excludes certain public and private nonprofit investors from the occupancy requirement.

Specifies certain actions which the Secretary must take to reduce losses under the single family mortgage insurance program.

Extends refinancing insurance authority to cover nursing homes, intermediate care facilities, and board and care homes. Provides that if the State agency is not empowered to certify the need for a nursing home, intermediate care facility, board and care home, or hospital, then the Secretary shall accept in lieu of certification a feasibility study which demonstrates such need.

Requires State approval, or an independent certification of need, for hospital mortgage insurance.

Transfers mortgage insurance programs for Hawaiian homelands and Indian lands from the Mutual Mortgage Insurance Fund to the General Insurance Fund of the Treasury. Permits Native Hawaiians to transfer FHA-financed property to their children or surviving spouses who do not meet the legal definition of native Hawaiians.

Increases from ten to 20 percent of the aggregate number of insured mortgages and loans for the preceding fiscal year the ceiling on the aggregate number of such insured mortgages and loans for any particular fiscal year.

Raises the fine for equity skimming from $5,000 to $250,000, and the possible prison sentence from a maximum of three years to a maximum of five years. Subjects skimming on cooperatives and condominiums to such penalties. Revises the definition of one kind of equity skimming practice to mean failing to make payments under the mortgage or deed of trust as the payments become due, regardless of whether the purchaser is obligated on the loan.

Authorizes the Secretary to impose civil money penalties on a mortgagee for certain violations of requirements of such Act, up to a maximum of $1,000 per violation, or $1,000,000 for all violations by a particular mortgagee during a one-year period. Provides for judicial review of an agency determination to assess such penalties.

Authorizes the Secretary to conduct a demonstration program of insurance of home equity conversion mortgages of elderly homeowners through FY 1990. Limits the total number of such mortgages to 2,500. Requires congressional reports and evaluations.

Requires the Secretary to maintain at least one office in each State to carry out such Act, in order to assure adequate processing of loan and mortgage insurance applications.

Prohibits the Secretary from closing any State office until at least 30 days after the completion of any investigation, study, or review by any Federal agency or congressional committee of the proposal or determination to close such office.

Prohibits a lender from requiring a minimum principal loan amount.

Requires the Secretary to prepare and submit to the Congress a study of voluntary standards for modular homes.

Repeals the provision requiring the publication of certain prototype housing costs.

Provides for a double damages remedy in U.S. district court to recover housing project assets or income.

Requires (current law authorizes) the Secretary to provide mortgages for certain properties within Indian reservations.

Increases the maximum single family mortgage amount from 133 1/3 percent to 150 percent of the prevailing home sales price. Requires a report to the Congress within four months of enactment of this Act on the feasibility of exempting from maximum mortgage limitations geographic areas with high housing prices.

Defines "area" for purposes of calculating the FHA maximum mortgage amount as the higher of a county or a metropolitan statistical area established by the Office of Management and Budget.

Permits the use of approved individual residential water purification units if the existing water supply does not meet HUD standards.

Establishes direct loans to prevent defaults on insured multifamily projects.

Directs the Secretary to continue to control rents in specified insured projects.

Increases specified multifamily project mortgage limits, including projects in high-cost areas.

Authorizes the Secretary to provide specified operating loss loan insurance programs.

Makes mortgage insurance technical amendments.

Subtitle B: Secondary Mortgage Market Programs - Prohibits (with specified exceptions) fees from being charged on: (1) Federal National Mortgage Association (FNMA) mortgages; or (2) Federal Home Loan Mortgage Corporation (FHLMC) mortgages.

Extends Federal National Mortgage Association and Federal Home Loan Mortgage Corporation mortgage purchase authority permanently.

Authorizes the elimination of the right of cumulative voting in the election of FNMA board members.

Directs the Secretary to act within 45 days (with an allowable 15-day extension) on a FNMA request for approval of an action.

Prohibits the FHLMC Board of Directors from imposing an annual limit on the maximum aggregate principal amount of mortgages purchased by FHLMC.

Sets FY 1988 limits on Government National Mortgage Association guarantees of mortgage-backed securities.

Title IV: Community Development and Miscellaneous Programs - Subtitle A: Community and Neighborhood Development and Preservation - Amends the Housing and Community Development Act of 1974 to authorize FY 1988 appropriations for the community development block grant (CDBG) program, including a specified amount for the special discretionary fund.

Makes specified amounts available for existing grant programs to minority graduate and undergraduate students in the areas of community development and planning.

Authorizes FY 1988 appropriations for the urban development action grant program (UDAG).

Requires at least 75 percent of CDBG appropriations to be used for low and moderate income benefits.

Extends CDBG entitlement authority for certain metropolitan city and urban county areas through FY 1988.

Repeals the requirement that a CDBG recipient include in the review statement a final project use of funds provision.

Permits CDBG funds to be used for Great Lakes flooding and erosion control.

Requires CDBG recipients to certify: (1) that they will preserve or expand the availability of low and moderate income housing, minimize displacement, and provide relocation assistance when necessary; (2) that they are following an economic development strategy under such grant; (3) that they are following a citizen participation plan; and (4) that they are following an antidisplacement and relocation assistance plan.

Authorizes a CDBG recipient to use more than 15 percent of annual funds for public service activities, with specified local limitations.

Permits limited new construction or substantial rehabilitation of existing housing as an eligible CDBG activity.

Requires a State agency to certify CDBG for nonentitlement areas. (Current law restricts certification authority to the State Governor only.)

Authorizes multiyear CDBG to small cities.

Prohibits a State from deducting administrative expenses from distribution amounts in entitlement areas in excess of the sum of $100,000 ($102,000 under current law) plus 50 percent of a State's administrative expenses above $100,000.

Authorizes FY 1988 CDBG loan guarantee limits. Prohibits guarantee fees. Includes within the eligible uses of such guarantees housing rehabilitation and certain economic development activities.

Modifies UDAG selection criteria. Requires the Comptroller General to report to the Congress every three years (the first report due within one year of enactment of this Act).

Amends the Housing and Community Development Act of 1974 to prohibit the use of community development funds under such Act to increase the market share of nondomestic corporations.

Authorizes FY 1988 appropriations for the urban homesteading program. Authorizes the purchase of foreclosed properties. Permits State or local governments to transfer property to qualified community organizations for homestead transfers.

Extends rehabilitation loan program authority through FY 1988. Prohibits the imposition of risk or loan premiums on such loans. Prohibits loan sales.

Amends the Neighborhood Reinvestment Corporation Act to authorize FY 1988 appropriations for the Neighborhood Reinvestment Corporation. Permits matching fund programs.

Sets aside specified FY 1988 funds: (1) for residents of the Park Central New Community Project; and (2) from the Secretary's CDBG discretionary fund for such project.

Prohibits recapture of previously reserved assistance under the rehabilitation loan program and the urban homesteading program.

Authorizes land disposition proceeds from specified closed-out urban renewal projects in Connecticut, Virginia, Wisconsin, and Pennsylvania to be retained and used for CDBG projects.

Makes community development technical amendments.

Subtitle B: Flood and Crime Insurance Programs - Amends the National Flood Insurance Act of 1968 to extend authority through FY 1989 for national flood insurance, including emergency implementation and flood-risk zones. Limits annual premium increases to five percent through FY 1988.

Amends the National Housing Act to extend authority through FY 1989 for crime insurance. Continues existing contracts through FY 1990. Limits annual premium increases to five percent through FY 1988.

Authorizes FY 1988 appropriations for flood insurance studies.

Makes eligible for flood insurance certain property covered by flood insurance located along a lake shore or other body of water that is subject to imminent collapse due to erosion caused by excessive water levels or waves.

Provides for a six-month moratorium on certain mobile home flood insurance regulations.

Makes flood and crime insurance technical amendments.

Subtitle C: Miscellaneous Programs - Authorizes a fair housing initiatives program. Authorizes FY 1988 appropriations. Sets forth program provisions.

Directs the Secretary of Housing and Urban Development and the Secretary of Agriculture to collect at least annually data on the racial and ethnic characteristics of persons eligible for or benefiting under each community development, housing assistance, and mortgage and loan insurance and guarantee program the Secretary administers.

Declares that it is U.S. policy that each HUD prime contractor should establish procedures to ensure the timely payment of subcontractors.

Amends the Housing and Urban Development Act of 1970 to authorize FY 1988 appropriations for research and development, including research or public housing energy improvements and lower cost building technologies.

Amends the Home Mortgage Disclosure Act of 1975 to make mortgage disclosure authority permanent. Expands coverage to any mortgage banking subsidiary of a bank holding company.

Amends the Lead-Based Paint Poisoning Prevention Act to require mortgagees to provide purchasers of 1978 or prior constructed homes with lead-based paint information. Directs the National Institute of Building Sciences and HUD to develop such information. Sets forth inspection criteria. Directs the Natioal Institute of Building Sciences to report to HUD and to the Congress within 18 months of enactment of this Act.

Amends the Housing and Urban Development Act of 1968 to authorize FY 1988 appropriations for lower income tenant and homeowner counseling.

Repeals the maximum $1,000 limit on fees for interstate land sales registration.

Extends the Solar Energy and Energy Conservation Bank through FY 1988. Authorizes FY 1988 appropriations.

Requires the Secretary to: (1) report annually to the Congress on innovative housing and neighborhood and community development initiatives; and (2) report to the Congress on the impact of HUD-assisted activities to enhance employment opportunities for low-income persons.

Amends the National Manufactured Housing Construction and Safety Standards Act of 1974 to require manufactured housing construction and safety standards to include energy conservation standards that ensure the same performance as those of newly-built single-family homes.

Amends the Housing and Community Development Amendments of 1981 to provide foreclosure procedures for mortgages held by the Secretary on single-family homes.

Title V: Nehemiah Housing Opportunity Grants - Authorizes the Secretary to make grants to nonprofit organizations for noninterest bearing second mortgages for new or rehabilitated homes.

Sets maximum loans at $15,000. Requires at least a five percent downpayment. Prohibits leasing. Makes such loans repayable to the Secretary upon the sale, lease, or transfer of the property.

Requires an eligible family to: (1) have an income not in excess of the greater of the local metropolitan median income for a family of four, or the national median income for a family of four; and (2) not have owned a home within three years.

Sets forth criteria for: (1) grant selection; and (2) assistance conditions.

Establishes in the Treasury the Nehemiah Housing Opportunity Fund.

Requires annual reports to the Congress.

Authorizes FY 1988 appropriations.

Title VI: Enterprise Zone Development - Authorizes the Secretary to designate up to 100 enterprise zones (to be identified by State and local authorities, or Indian reservation governing bodies) to provide economic revitalization, job creation, and community development.

Requires a specified number of rural designations.

Sets forth area and eligibility requirements.

Prohibits business relocation assistance.

Requires program reports to the Congress every four years.

Authorizes the waiver or modification of housing and community development rules in enterprise zones.

Provides for the coordination of community development block grant, urban development action grant, and other HUD programs in such zones.

Title VII: Budget Enforcement - States that amounts in this Act shall not exceed the level established for any function in the budget resolution.