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[[Page 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. <<NOTE: Dec. 16, 2003 -  [S. 811]>> 

    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 <<NOTE: American Dream Downpayment Act.>> I--DOWNPAYMENT 
ASSISTANCE

SEC. 101. SHORT TITLE. <<NOTE: 42 USC 12701 note.>> 

    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 117 STAT. 2686]]

                     ``Subtitle E--Other Assistance

``SEC. 271. <<NOTE: 42 USC 12821.>> 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 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 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 <<NOTE: Deadline.>> 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 <<NOTE: Living Equitably: Grandparents Aiding Children and Youth 
Act of 2003.>> II--INTERGENERATIONAL HOUSING ASSISTANCE

SEC. 201. <<NOTE: 12 USC 1701q note.>> 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. <<NOTE: 12 USC 1701q note.>> 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 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--

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