Community Enterprise Revitalization Amendments Act - Amends the Housing and Community Development Act of 1974 to authorize the Secretary of Housing and Urban Development to make economic development grants to enhance the security of housing loan guarantees under section 108 of such Act.
Authorizes such grants' funding with recaptured urban development action grant (UDAG) amounts.
Authorizes a UDAG amnesty program.
Authorizes the Secretary to guarantee section 108-backed obligations.
[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[H.R. 3793 Introduced in House (IH)]
103d CONGRESS
2d Session
H. R. 3793
To provide for the Secretary of Housing and Urban Development to make
grants for economic development activities in connection with loan
guarantees under section 108 of the Housing and Community Development
Act of 1974 to enhance the security of such loans and improve the
viability of projects financed with such loans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 3, 1994
Mr. Ridge introduced the following bill; which was referred to the
Committee on Banking, Finance and Urban Affairs
_______________________________________________________________________
A BILL
To provide for the Secretary of Housing and Urban Development to make
grants for economic development activities in connection with loan
guarantees under section 108 of the Housing and Community Development
Act of 1974 to enhance the security of such loans and improve the
viability of projects financed with such loans, 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 ``Community Enterprise Revitalization
Amendments Act''.
SEC. 2. SECTION 108 ELIGIBLE ACTIVITIES.
(a) In General.--Section 108(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5308(a)) is amended--
(1) in the first sentence--
(A) by striking ``or'' after ``section 105(a);'';
and
(B) by inserting before the period the following:
``; (5) the acquisition, construction, reconstruction,
or installation of public facilities (except for
buildings for the general conduct of government); or
(6) in the case of colonias, public works and site or
other improvements''; and
(2) by striking the second sentence and inserting the
following: ``A guarantee under this section (including a
guarantee combined with a grant under subsection (q)) may be
used to assist a grantee in obtaining financing only if the
grantee has made efforts to obtain the financing without the
use of the guarantee (and, if applicable, the grant) and cannot
complete the financing consistent with the timely execution of
the proposed activities and projects without the guarantee (or,
if applicable, the grant).''.
(b) Definition.--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 new paragraph:
``(24) The term `colonia' means any identifiable community
that--
``(A) is in the State of Arizona, California, New
Mexico, or Texas;
``(B) is in the United States-Mexico border region;
``(C) is determined to be a colonia on the basis of
objective criteria, including lack of potable water
supply, lack of adequate sewage systems, and lack of
decent, safe, and sanitary housing; and
``(D) was in existence as a colonia before the date
of the enactment of the Cranston-Gonzalez National
Affordable Housing Act.''.
SEC. 3. ECONOMIC DEVELOPMENT GRANTS.
(a) In General.--Section 108 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5308) is amended by adding at the
end the following new subsection:
``(q) Economic Development Grants.--
``(1) Authorization.--The Secretary may make grants in
connection with notes or other obligations guaranteed under
this section to eligible public entities for the purpose of
enhancing the security of loans guaranteed under this section
or improving the viability of projects financed with loans
guaranteed under this section.
``(2) Eligible activities.--Assistance under this
subsection may be used for the purposes of and in conjunction
with projects and activities assisted under subsection (a).
``(3) Applications.--Applications for assistance under this
subsection shall be submitted by eligible public entities in
the form and in accordance with the procedures established by
the Secretary. Eligible public entities may apply for grants
only in conjunction with a request for guarantee under
subsection (a).
``(4) Selection criteria.--The Secretary shall establish
criteria for awarding assistance under this subsection. Such
criteria shall include--
``(A) the extent of need for such assistance;
``(B) the level of distress in the community to be
served and in the jurisdiction applying for assistance;
``(C) the quality of the plan proposed and the
capacity or potential capacity of the applicant to
successfully carry out the plan; and
``(D) such other factors as the Secretary
determines to be appropriate.''.
(b) Conforming Amendment.--Title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) is amended--
(1) in section 101(c) in the second sentence, by inserting
``or a grant'' after ``guarantee''; and
(2) in section 104(b)(3), by inserting ``or a grant'' after
``guarantee''.
SEC. 4. USE OF UDAG RECAPTURES.
Section 119(o) of the Housing and Community Development Act of 1974
(42 U.S.C. 5318(o)) is amended by inserting before the period the
following: ``, except that amounts available to the Secretary for use
under this subsection as of October 1, 1993, and amounts released to
the Secretary pursuant to subsection (t) may, to the extent or in such
amounts as are or have been provided in appropriation Acts, be used to
provide grants under section 108(q).''.
SEC. 5. UDAG AMNESTY PROGRAM.
(a) Amendment.--Section 119 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5318) is amended by adding at the
end the following new subsection:
``(t) UDAG Amnesty Program.--If a grant or a portion of a grant
under this section remains unexpended as of the issuance of a notice
implementing this subsection, the grantee may enter into an agreement,
as provided under this subsection, with the Secretary to receive a
percentage of the grant amount and relinquish all claims to the balance
of the grant within 90 days of the issuance of notice implementing this
subsection (or such later date as the Secretary may approve). The
Secretary shall not recapture any funds obligated pursuant to this
section during a period beginning on the date of enactment of the
Housing and Community Development Act of 1993 until 90 days after the
issuance of a notice implementing this subsection. A grantee may
receive as a grant under this subsection--
``(1) 33 percent of such unexpended amounts if--
``(A) the grantee agrees to expend not less than
one-half of the amount received for activities
authorized pursuant to section 108(q) and to expend
such funds in conjunction with a loan guarantee made
under section 108 at least equal to twice the amount of
the funds received; and
``(B)(i) the remainder of the amount received is
used for economic development activities eligible under
title I of this Act; and
``(ii) except when waived by the Secretary in the
case of a severely distressed jurisdiction, not more
than one-half of the costs of activities under
subparagraph (B) are derived from such unexpended
amounts; or
``(2) 25 percent of such unexpended amounts if--
``(A) the grantee agrees to expend such funds for
economic development activities eligible under title I
of this Act; and
``(B) except when waived by the Secretary in the
case of a severely distressed jurisdiction, not more
than one-half of the costs of such activities are
derived from such unexpended amount.''.
(b) Implementation.--Notwithstanding section 7, not later than 10
days after the date of enactment of this Act, the Secretary shall, by
notice published in the Federal Register, which shall take effect upon
publication, establish such requirements as may be necessary to
implement the amendments made by this section.
SEC. 6. GUARANTEE OF OBLIGATIONS BACKED BY SECTION 108 LOANS.
Section 108 of the Housing and Community Development Act of 1974
(42 U.S.C. 5308), as amended by section 3, is amended by adding at the
end the following new subsection:
``(r) Guarantee of Obligations Backed by Section 108 Loans.--
``(1) Authorization.--The Secretary may, upon such terms
and conditions as the Secretary deems appropriate, guarantee
the timely payment of the principal of and interest on trust
certificates or other obligations that--
``(A) are offered by the Secretary, or by any other
offeror approved for purposes of this subsection by the
Secretary; and
``(B) are based on and backed by a trust or pool
composed of notes or other obligations guaranteed by
the Secretary under this section.
``(2) Full faith and credit of the united states.--
Subsection (f) shall apply to any guarantee under this
subsection.
``(3) Subrogation.--If the Secretary pays a claim under a
guarantee issued under this section, the Secretary shall be
subrogated fully to the rights satisfied by such payment.
``(4) Powers of the secretary.--No Federal, State, or local
law shall preclude or limit the exercise by the Secretary of--
``(A) the power to contract with respect to public
offerings and other sales of notes, trust certificates,
and other obligations guaranteed under this section
upon such terms and conditions as the Secretary deems
appropriate;
``(B) the right to enforce by any means deemed
appropriate by the Secretary any such contract; and
``(C) the Secretary's ownership rights, as
applicable, in notes, certificates, or other
obligations guaranteed under this section, or
constituting the trust or pool against which trust
certificates or other obligations guaranteed under this
section are offered.''.
SEC. 7. EFFECTIVE DATE.
The Secretary shall, by notice published in the Federal Register,
which shall take effect upon publication, establish such requirements
as may be necessary to implement the amendments made by this Act. The
notice shall invite public comments and, not later than 12 months after
the date on which the notice is published, the Secretary shall issue
final regulations based on the initial notice, taking into account any
public comments received.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Banking, Finance + Urban Affrs.
Referred to the Subcommittee on Housing and Community Development.
Sponsor introductory remarks on measure. (CR E551)
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