House Appropriations Committee Issues Report on DOT, HUD, Related Agencies Appropriations Bill, 2018

WASHINGTON, July 29 -- The House Appropriations Committee issued a report (H.Rpt. 115-237) on legislation (H.R. 3353) in explanation of the accompanying bill making appropriations for the Departments of Transportation, and Housing and Urban Development, and related agencies for the fiscal year ending September 30, 2018. The report was advanced by Rep. Mario Diaz-Balart, R-Fla., on July 21.

HOUSING COUNSELING ASSISTANCE

Appropriation, fiscal year 2017....................... $55,000,000

Budget request, fiscal year 2018...................... 47,000,000

Recommended in the bill............................... 50,000,000

Bill compared with:

Appropriation, fiscal year 2017................... -5,000,000

Budget request, fiscal year 2018.................. +3,000,000

Section 106 of the Housing and Urban Development Act of 1968 authorized HUD to provide housing counseling services to homebuyers, homeowners, low and moderate income renters, and the homeless.

COMMITTEE RECOMMENDATION

The Committee recommends $50,000,000 for housing counseling assistance, $5,000,000 below the fiscal year 2017 enacted level and $3,000,000 above the budget request.

The Committee notes that the economy continues to improve and foreclosures continue to decline. Foreclosure filings for 2016 were reported on 933,000 properties, which represents a 10-year low and a reduction of 14 percent from 2015. The foreclosure rate has stayed within a historically normal range for three years, even with the pipeline of legacy foreclosures resulting from the housing bubble. The Committee continues its commitment to counseling programs and provides funding above the requested level for HUD's housing counseling assistance program. Further the Committee continues to provide funding for the Neighborhood Reinvestment Corporation's core program, which offers housing counseling services.

The Committee retains bill language that provides two-year funding availability to allow HUD flexibility to obligate recaptures and unobligated balances to support counseling activity rather than allowing the funds to expire. The bill retains language that requires HUD to make grants within 180 days of enactment of this Act, and allows multi-year agreements, subject to the availability of annual appropriations.

The Committee encourages HUD to coordinate with FEMA's flood insurance advocate to ensure HUD counselors located in flood-prone states receive adequate training and information to educate future homeowners on their potential flood risks, associated flood insurance premiums, home mitigation measures available proven to reduce flood risk, and any federal assistance available for mitigation projects and activities.

RENTAL HOUSING ASSISTANCE

Appropriation, fiscal year 2017....................... $20,000,000

Budget request, fiscal year 2018...................... 14,000,000

Recommended in the bill............................... 14,000,000

Bill compared with:

Appropriation, fiscal year 2017................... -6,000,000

Budget request, fiscal year 2018.................. - - -

The rental housing assistance account includes existing long-term project-based rental assistance contracts covering affordable housing units under the rent supplement and section 236 rental assistance payment (RAP) programs. Enacted in 1965 and 1974 respectively, these programs created affordable units for low-income families. Monthly payments are made to project owners from existing contract balances, and new budget authority for short-term extensions of expiring contracts and annual contract amendments. Contract amendments provide additional subsidy to below-market contracts where rents have been constrained and owners are unable to adequately service properties and perform ongoing maintenance.

COMMITTEE RECOMMENDATION

The Committee recommends $14,000,000 in funding for the rental housing assistance program, $6,000,000 below the fiscal year 2017 enacted level and equal to the budget request. This appropriation will fully fund contract amendment and extension needs in fiscal year 2018. The Committee continues bill language that allows HUD to use unobligated balances and recaptured funds for extensions and amendments.

PAYMENT TO MANUFACTURED HOUSING FEES TRUST FUND

Appropriation, fiscal year 2017....................... $10,500,000

Budget request, fiscal year 2018...................... 11,000,000

Recommended in the bill............................... 11,000,000

Bill compared with:

Appropriation, fiscal year 2017................... +500,000

Budget request, fiscal year 2018.................. - - -

The National Manufactured Housing Construction and Safety Standards Act of 1974, as amended by the Manufactured Housing Improvement Act of 2000, authorizes the Secretary to establish Federal manufactured home construction and safety standards for the construction, design, and performance of manufactured homes. All manufactured homes are required to meet the Federal standards, and fees are charged to producers to cover the costs of administering the Act. HUD estimates that there are 8 million manufactured homes built since 1976 that are currently in use.

COMMITTEE RECOMMENDATION

The Committee recommends up to $11,000,000 for the manufactured housing standards programs to be derived from certification label fees collected and deposited in the manufactured housing fees trust fund, established pursuant to the Manufactured Housing Improvement Act of 2000. The Committee does not provide a direct appropriation for this account. The recommendation is $500,000 above the fiscal year 2017 enacted level and equal to the budget request. This increase reflects the growth in production since 2011, which is projected to continue.

The Committee includes language allowing the Department to collect fees from program participants for the dispute resolution and installation programs. These fees are to be deposited into the trust fund and may be used by the Department subject to the overall cap placed on the account.

FEDERAL HOUSING ADMINISTRATION

MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT

(TABLE OMITTED)

The Federal Housing Administration's (FHA) mutual mortgage insurance program account includes the Mutual Mortgage Insurance (MMI) and cooperative management housing insurance funds. This program account covers unsubsidized programs, primarily the single-family home mortgage program, which is the largest of all the FHA programs. These include the Condominium, Section 203(k) rehabilitation, and Home Equity Conversion Mortgage programs (HECM) and the multifamily Cooperative Management Housing Insurance (CMHI) funds. The cooperative housing insurance program provides mortgages for cooperative housing projects of more than five units that are occupied by members of a cooperative housing corporation.

COMMITTEE RECOMMENDATION

The Committee recommends the following limitations on loan commitments in the MMI program account: $400,000,000,000 for loan guarantees and $5,000,000 for direct loans. The recommendation also includes $135,000,000 for administrative contract expenses.

The Committee's recommendation for administrative contract expenses is $5,000,000 above the fiscal year 2017 enacted level and $25,000,000 below the budget request. The increase over the prior year's level is for system automation, quality control efforts, and risk management improvements. The Committee denies authority to assess a new fee to augment administrative costs.

FHA loan limits.--The Committee directs HUD to review FHA loan limits in large land area counties that experienced a reduction of at least 25 percent to FHA loan limits in 2014 when the Housing Economic Recovery Act's loan limits replaced those in the Economic Stimulus Act of 2008. The study should analyze if a county's geographic size distorts the FHA loan limit calculation and if home sales price data shows that FHA loan limits are inadequate for distinct subareas.

Home equity conversion mortgage (HECM).--The Committee continues bill language that lifts the statutory aggregate cap of 275,000 HECM loan guarantees in fiscal year 2018.

Eminent domain.--The Committee continues bill language that prohibits financing of properties obtained through eminent domain. The Committee continues to be concerned about proposals for local governments to seize underwater performing mortgages and then refinance them into an FHA product. The Committee required HUD to submit a report on April 1, 2014 detailing the effects using eminent domain for these purposes will have on the housing market, including FHA primary and refinance market, as well as the broader mortgage market, interest rates, homeownership, and affordability. The Committee continues to await the delivery of this report, and continues to prohibit HUD from financing mortgages for properties that have been subject to eminent domain.

Property assessed clean energy (PACE) loans.--The Committee includes bill language prohibiting funds from being used to purchase, guarantee, or insure any mortgage on properties that have a PACE loan in a first lien position--superior to the FHA loan. PACE loans are issued by state or local governments for energy efficiency improvements; are attached to the property, as opposed to the borrower; and often secured by an assessment or tax. Interest rates on these loans are significantly higher than typical mortgage rates, lines of credits, and even some credit cards.

Loans repaid by a tax or assessment enjoy a first lien position and, therefore, have priority in receiving proceeds in the event of a foreclosure. A PACE loan would be fully satisfied before the FHA mortgage. FHA's subordinate position increases the risk of loss to the MMI fund and by extension, taxpayers. The Committee notes that the MMI fund was forced to draw $1,700,000,000 from the U.S. Treasury just four years ago to cover projected losses on loans it guarantees, and just reached its statutory capital reserve level just two years ago.

In 2010, the Federal Housing Finance Agency (FHFA) prohibited Fannie Mae and Freddie Mac from purchasing a mortgage with an existing first lien PACE loan. In its role as conservator to the GSEs, FHFA stated that "one of the bedrock principles in the process is that the mortgages supported must remain in a first lien position."

In 2015, HUD changed its policy and began allowing FHA to insure properties that have a first lien PACE loan. One year later, HUD stated PACE loans could not have super priority status. For delinquent PACE obligations on foreclosed properties, however, PACE has retained a first lien position. The new Administration is concerned about this risky position and is reviewing its policy related to PACE loans. Others are concerned that borrowers are not fully informed and aware of their legal and financial commitments. On April 5, the "Protecting Americans from Credit Entanglements Act of 2017" (PACE Act) was introduced in the Senate. This bill would increase transparency for homebuyers by requiring a Truth in Lending Act disclosure that details the loan terms and conditions, consistent with other forms of home financing.

The Committee is concerned about HUD's decision to allow an FHA mortgage to be in a second lien position to a PACE loan. The Committee supports energy efficiency improvements, but not at the expense of the MMI fund or general taxpayers. Further, interest rates on FHA projects could increase to reflect this increased risk, making the homebuying process less affordable for the very population that FHA mortgage were created to assist. Therefore, the Committee includes bill language that prospectively prohibits FHA from purchasing, insuring, or guaranteeing a property that has a PACE loan in a first lien position. Finally, the Committee notes that the prohibition does not eliminate the PACE program and consumers will continue to be able to fund energy efficiency improvements via a PACE loan or other financing mechanisms. This prohibition serves only to protect the MMI fund and taxpayers.

GENERAL AND SPECIAL RISK PROGRAM ACCOUNT

(TABLE OMITTED)

The Federal Housing Administration's (FHA) general insurance and special risk insurance (GI and SRI) program account includes 17 different programs administered by FHA. The GI fund includes a wide variety of insurance programs for special-purpose single and multifamily loans, including loans for property improvements, manufactured housing, multifamily rental housing, condominiums, housing for the elderly, hospitals, group practice facilities, and nursing homes. The SRI fund includes insurance programs for mortgages in older, declining urban areas that would not otherwise be eligible for insurance, mortgages with interest reduction payments, and mortgages for experimental housing and for high-risk mortgagors who would not normally be eligible for mortgage insurance without housing counseling.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation on loan guarantees of $30,000,000,000, equal to the fiscal year 2017 enacted level and the budget request. It includes a limitation of $5,000,000 for direct loans, which is equal to the fiscal year 2017 enacted level and equal to the budget request. This program provides short-term purchase money mortgages to allow non- profit and governmental agencies to acquire single-family properties and resell to low income purchasers. However, use has declined recently due to the shortage of state/local government subsidies needed to offset participants' development costs associated with administering the program.

The Committee encourages HUD to coordinate with FEMA's flood insurance advocate and identify rehabilitation activities eligible under section 203(k) that also fulfill FEMA's hazard mitigation standards and to identify qualifying disaster mitigation rehabilitation options on its website and other promotional materials.

Government National Mortgage Association

GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN GUARANTEE

PROGRAM ACCOUNT

(TABLE OMITTED)

The Guarantees of Mortgage-Backed Securities Program facilitates the financing of residential mortgage loans insured or guaranteed by the Federal Housing Administration, the Department of Veterans Affairs, and the Rural Housing Services program. The Government National Mortgage Association (GNMA) guarantees the timely payment of principal and interest on securities issued by private service institutions such as mortgage companies, commercial banks, savings banks, and savings and loan associations that assemble pools of mortgages and issue securities backed by the pools. In turn, investment proceeds are used to finance additional mortgage loans. Investors include non-traditional sources of credit in the housing market such as pension and retirement funds, life insurance companies, and individuals.

COMMITTEE RECOMMENDATION

The recommendation includes a $500,000,000,000 limitation on loan commitments for mortgage-backed securities, as requested, and $25,400,000 for the personnel costs of GNMA, to be funded by commitment and multiclass fees. The recommendation for personnel costs is $2,400,000 above the fiscal year 2017 enacted level and equal to the budget request.

Policy Development and Research

RESEARCH AND TECHNOLOGY

Appropriation, fiscal year 2017....................... $89,000,000

Budget request, fiscal year 2018...................... 85,000,000

Recommended in the bill............................... 85,000,000

Bill compared with:

Appropriation, fiscal year 2017................... -4,000,000

Budget request, fiscal year 2018.................. - - -

Title V of the Housing and Urban Development Act of 1970, as amended, directs the Secretary of the Department of Housing and Urban Development to undertake programs of research, evaluation, and reports relating to the Department's mission and programs. These functions are carried out internally and through grants and contracts with industry, nonprofit research organizations, educational institutions, and through agreements with state and local governments and other federal agencies. The research programs seek ways to improve the efficiency, effectiveness, and equity of HUD programs and to identify methods to achieve cost reductions. This appropriation is used to support HUD evaluation and monitoring activities and to conduct housing surveys. Finally, funds under this heading are used to support technical assistance activities to the various states, communities, and agencies that are charged with administering HUD's programs and funds.

COMMITTEE RECOMMENDATION

The Committee recommends $85,000,000 for this account, which is $4,000,000 below the fiscal year 2017 enacted level and equal to the budget request.

Of the activities proposed in the budget, the Committee recommends up to $50,000,000 for the core research programs, including market surveys, research support and dissemination, data acquisition, housing finance studies, research partnerships, and housing technology. The Committee recommends $5,000,000 for new and continuing studies and demonstration evaluations, with up to $2,000,000 for the Moving to Work study, up to $1,500,000 to continue the Choice Neighborhoods study, and funds for the Family Unification Program and Family Self-Sufficiency evaluation and the Rental Assistance Demonstration Choice Mobility evaluation.

Further, the Committee's recommendation includes $30,000,000 for all technical assistance. Of the funds made available under technical assistance, $5,000,000 shall be available on a competitive basis to a non-profit or private sector organizations to provide technical assistance to distressed cities or regions.

Of the funds identified for technical assistance to troubled PHA's, the Committee strongly urges the Department to target truly troubled or at-risk PHAs requiring assistance to conduct basic business and housing responsibilities versus assisting with glitzy and bonus endeavors that reflect the previous Administration's strategies, such as energy performance contracts, but do little to fulfill basic needs.

The Committee directs HUD to publish the margin of error at the place level for the low-and-moderate income (LMI) American Community Survey data HUD used to determine CDBG eligibility for each place that has a margin of error that is 20% or greater. The Committee directs HUD to provide this data to the House and Senate Committees on Appropriations within 90 days of enactment of this Act. Further, the Committee directs HUD to explore the use of administrative data sets to provide an alternative measure of area income for the CDBG program when standard data have large margins of error and to report its progress to the House and Senate within 90 days of enactment of this Act.

As in prior years, the bill includes a general provision in Title II that prohibits funds from being used for a doctoral dissertation research grant program. The bill includes a general provision in Title II that allows the Department to use prior year deobligated or unexpended funds made available to the Office of Policy Development and Research for other research and evaluations. The Committee provides this authority under the condition that any new obligations are subject to the regular reprogramming procedures outlined in Section 405.

The Committee looks forward to receiving studies required in the fiscal year 2017 Act: the options for measuring AMI using more localized methodologies; the feasibility of using these alternative measurements; and HUD's plans to test the identified alternatives, and best practices and recommendations to address the displacement of lower-income families and long- time residents in urban areas; and loss of affordable housing across the nation, as required in the fiscal year 2017 Act.

Fair Housing and Equal Opportunity

FAIR HOUSING ACTIVITIES

Appropriation, fiscal year 2017....................... $65,300,000

Budget request, fiscal year 2018...................... 65,300,000

Recommended in the bill............................... 65,300,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. - - -

The Office of Fair Housing and Equal Opportunity (OFHEO) is responsible for developing policies and guidance, and for providing technical support for enforcement of the Fair Housing Act and the civil rights statutes. OFHEO serves as the central point for the formulation, clearance and dissemination of policies, intra-departmental clearances, and public information related to fair housing issues. OFHEO receives, investigates, conciliates and recommends the issuance of charges of discrimination and determinations of non-compliance for complaints filed under Title VIII and other civil rights authorities. Additionally, OFHEO conducts civil rights compliance reviews and compliance reviews under section 3.

COMMITTEE RECOMMENDATION

The Committee recommends $65,300,000 for fair housing programs, equal to the fiscal year 2017 enacted level and the request. Of the total, $24,300,000 is for the fair housing assistance programs; and $39,200,000 for the fair housing initiative programs, of which not less than $7,450,000 is for education and outreach programs. A total of $300,000 is for the limited English proficiency initiative and $1,500,000 is for the National Fair Housing Training Academy (NFHTA). The Committee directs the Department to investigate transitioning training provided by NFHTA to computer and web-based training courses, and directs HUD to provide the committee within 90 days of enactment of this Act, costs and revenues associated with operating NHFTA, and costs and revenues associated with a web-based training model. Further, the Committee directs HUD to focus resources on education, outreach, and training initiatives, and supporting local and state organizations that conduct investigations and adjudicate claims.

Spend plan.--The Committee directs the Department to provide a spend plan for all funds and activities in this account concurrent with the fiscal year 2018 operating plan and provide 3 days' notice prior to the announcement of any grant.

Affirmatively furthering fair housing (AFFH).--A number of communities and local organizations have expressed concern that the guidance provided by HUD regarding compliance with the new AFFH rule is vague, and the communication with stakeholders regarding requirements and compliance is lacking. In fiscal year 2017, the Committee directed HUD to address these concerns, and continue to refine the tools and resources available to stakeholders to comply with the new rule. The Committee directs HUD to submit a report 90 days after enactment of this Act summarizing activity taken in fiscal year 2017 and plans for fiscal year 2018 to make compliance with this rule more transparent.

The Committee continues to carry bill language prohibiting HUD from directing a grant to make zoning changes as part of carrying out the AFFH rule.

Disparate impact and insurance.--The Committee notes that the McCarran-Ferguson Act of 1945 explicitly states that, "unless a Federal law specifically relates to the business of insurance, that law shall not apply where it would interfere with State insurance regulation."

The Fair Housing Act does not specifically relate to the business of insurance. In fact, The United States District Court, Northern Division of Illinois found that "HUD's response to the insurance industry's concerns [regarding the Disparate Impact Rule] was arbitrary and capricious" and remanded a portion of the "Implementation of the Fair Housing Act's Discriminatory Effects Standard" rule regarding insurance back to HUD for further consideration and explanation.

The Committee is concerned that HUD continues to assert insurance regulatory authority that contradicts the McCarran- Ferguson statutory mandate and the limitations on disparate impact liability set forth by the US Supreme Court in Texas Department of Housing and Community Affairs v The Inclusive Communities Project, Inc., 135 S.Ct. 2507 (2015).

Office of Lead Hazard Control and Healthy Homes

LEAD HAZARD REDUCTION

Appropriation, fiscal year 2017....................... $145,000,000

Budget request, fiscal year 2018...................... 130,000,000

Recommended in the bill............................... 130,000,000

Bill compared with:

Appropriation, fiscal year 2017................... -15,000,000

Budget request, fiscal year 2018.................. - - -

The Office of Lead Hazard Control and Healthy Homes is responsible for administering the lead-based paint hazard reduction program authorized by Title X of the Housing and Community Development Act of 1992. The office also addresses multiple housing-related health hazards through the healthy homes initiative, pursuant to the Secretary's authority in sections 501 and 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-1 and 1701z-2).

The office develops lead-based paint regulations, guidelines, and policies applicable to HUD programs and enforces the lead disclosure rule issued under Title X. For both lead-related and healthy homes issues, the office designs and administers programs for grants, training, research, demonstration, and education.

COMMITTEE RECOMMENDATION

The Committee recommends $130,000,000 for the lead programs, which is $15,000,000 below the fiscal year 2017 enacted level and equal to the budget request.

The Committee recommends no more than $25,000,000 for the healthy homes initiative, and directs the Department to fund activities aimed at reducing incidences of asthma, mold, pests and radon.

The Committee directs the Department to provide a spend plan for all funds and activities in this account concurrent with the fiscal year 2018 operating plan and provide 3 days' notice prior to the announcement of any grant.

Information Technology Fund

Appropriation, fiscal year 2017....................... $257,000,000

Budget request, fiscal year 2018...................... 250,000,000

Recommended in the bill............................... 150,000,000

Bill compared with:

Appropriation, fiscal year 2017................... -107,000,000

Budget request, fiscal year 2018.................. -100,000,000

The Information Technology Fund finances the information technology (IT) systems that support departmental programs and operations, including FHA Mortgage Insurance, housing assistance and grant programs, as well as core financial and general operations.

COMMITTEE RECOMMENDATION

The Committee recommends $150,000,000 in direct appropriations for the IT Fund to support Department-wide information technology system activities, which is $107,000,000 less than the fiscal year 2017 enacted level and $100,000,000 below the budget request. The Department requires approximately $250,000,000 simply to operate basic telecommunication services and existing information technology contracts, and prior to enactment, the Committee will work to identify sources of funds to maintain and upgrade the Department's systems. The Committee strongly urges HUD to continue refining the services and contracts under the Department's Working Capital Fund so that IT services can be funded by the users.

The Committee directs HUD to continue its efforts to retire obsolete, unproductive, and expensive information technology systems, and streamline and consolidate current services contracts in an effort to direct resources for higher priority and more effective systems.

The Committee directs the Government Accountability Office (GAO) to evaluate the Department of Housing and Urban Developments' information security framework for protecting information related to housing, community investment, and mortgage loans. Specifically, this review should identify (1) what entities collect, store, and process such data and connect with HUD systems and networks; (2) to what extent do requirements for the protection of the data defined by HUD align with federal guidance; and (3) how effective are the processes and procedures that HUD has in place to oversee the implementation of security and privacy protections for the data.

Office of Inspector General

Appropriation, fiscal year 2017....................... $128,082,000

Budget request, fiscal year 2018...................... 126,000,000

Recommended in the bill............................... 128,082,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. +2,082,000

The Office of Inspector General (IG) provides agency-wide audit and investigative functions to identify and correct management and administrative deficiencies that create conditions for existing or potential instances of waste, fraud, and mismanagement. The audit function provides internal audit, contract audit, and inspection services. Contract audits provide professional advice to agency contracting officials on accounting and financial matters relative to negotiation, award, administration, re-pricing, and settlement of contracts. Internal audits evaluate all facets of agency operations. Inspection services provide detailed technical evaluations of agency operations. The investigative function provides for the detection and investigation of improper and illegal activities involving programs, personnel, and operations.

COMMITTEE RECOMMENDATION

The Committee recommends $128,082,000 for the Office of Inspector General, which is equal to the fiscal year 2017 enacted level and $2,082,000 greater than the budget request. The Committee does not provide funds for any additional personnel.

The Committee has found the reports and investigations undertaken by the IG over the past few years to be interesting and pertinent to the work of the Committee.

General Provisions--Department of Housing and Urban Development

(INCLUDING TRANSFER OF FUNDS)

(INCLUDING RESCISSION)

Section 201 splits overpayments evenly between Treasury and State Housing Finance Agencies.

Section 202 prohibits funds from being used to investigate or prosecute lawful activities under the Fair Housing Act.

Section 203 requires any grant or cooperative agreement to be made on a competitive basis, unless otherwise provided, in accordance with Section 102 of the Department of Housing and Urban Development Reform Act of 1989.

Section 204 relates to the availability of funds for services and facilities for GSEs and others subject to the Government Corporation Control Act and the Housing Act of 1950.

Section 205 prohibits the use of funds in excess of the budget estimates, unless provided otherwise.

Section 206 relates to the expenditure of funds for corporations and agencies subject to the Government Corporation Control Act.

Section 207 requires the Secretary to provide quarterly reports on uncommitted, unobligated, recaptured, and excess funds in each departmental program and activity.

Section 208 requires the Administration's budget and HUD's budget justifications for fiscal year 2019 be submitted in the identical account and sub-account structure provided in this Act.

Section 209 exempts GNMA from certain requirements of the Federal Credit Reform Act of 1990.

Section 210 authorizes HUD to transfer debt and use agreements from an obsolete project to a viable project, provided that no additional costs are incurred and other conditions are met.

Section 211 sets forth requirements for Section 8 voucher assistance eligibility, and includes consideration for persons with disabilities.

Section 212 distributes Native American Housing Block Grants to the same Native Alaskan recipients as in fiscal year 2005.

Section 213 authorizes the Secretary to insure mortgages under Section 255 of the National Housing Act.

Section 214 instructs HUD on managing and disposing of any multifamily property that is owned or held by HUD.

Section 215 allows the Section 108 loan guarantee program to guarantee notes or other obligations issued by any State on behalf of non-entitlement communities in the State.

Section 216 allows PHAs that own and operate 400 or fewer units of public housing to be exempt from asset management requirements.

Section 217 restricts the Secretary from imposing any requirements or guidelines relating to asset management that restrict or limit the use of capital funds for central office costs, up to the limit established in QHWRA.

Section 218 requires that no employee of the Department shall be designated as an allotment holder unless the CFO determines that such employee has received certain training.

Section 219 requires the Secretary to publish all notice of funding availability that is competitively awarded on the internet for fiscal year 2018.

Section 220 requires attorney fees for programmatic litigation to be paid from the individual program office and Office of General Counsel salaries and expenses appropriations, and requires the Department to submit a spend plan to the House and Senate Committees on Appropriations.

Section 221 allows the Secretary to transfer up to 10 percent of funds or $4,000,000, whichever is less, appropriated under the headings "Administrative Support Offices" or "Program Office Salaries and Expenses" to any other office funded under such headings.

Section 222 requires HUD to take certain actions against owners receiving rental subsidies that do not maintain safe properties.

Section 223 places a salary and bonus limit on public housing agency officials and employees.

Section 224 prohibits the use of funds for the doctoral dissertation research grant program at HUD.

Section 225 extends the HOPE VI program to September 30, 2018.

Section 226 requires the Secretary to notify the House and Senate Committees on Appropriations at least 3 full business days before grant awards are announced.

Section 227 prohibits funds to be used to require or enforce the Physical Needs Assessment (PNA).

Section 228 prohibits funds for HUD financing of mortgages for properties that have been subject to eminent domain.

Section 229 prohibits the use of funds to terminate the status of a unit of general local government as a metropolitan city with respect to grants under section 106 of the Housing and Community Development Act of 1974.

Section 230 allows funding for research, evaluation, and statistical purposes that is unexpended at the time of completion of the contract, grant, or cooperative agreement to be reobligated for additional research.

Section 231 prohibits funds to be used for financial awards for employees subject to administrative discipline in fiscal year 2018.

Section 232 allows program income as an eligible match for 2016, 2017, and 2018 Continuum of Care funds.

Section 233 permits HUD to provide one year transition grants under the continuum of care program with no more than 50 percent of the grant provided for costs of eligible activities of the program component originally funded.

Section 234 prohibits the use of funds to direct a grantee to undertake specific changes to existing zoning laws as part of carrying out the final rule entitled, "Affirmatively Furthering Fair Housing" or the notice entitled, "Affirmatively Furthering Fair Housing Assessment Tool".

Section 235 extends the mark to market program to September 30, 2022.

Section 236 prohibits new guarantees or insurance on properties with a PACE loan that is or has the potential to be in a superior lien position compared to the mortgage guaranteed or insured under the MMI fund.

Section 237 expands authorities under the Rental Assistance Demonstration program.

TITLE III--RELATED AGENCIES

Access Board

SALARIES AND EXPENSES

Appropriation, fiscal year 2017....................... $8,190,000

Budget request, fiscal year 2018...................... 7,928,000

Recommended in the bill............................... 8,190,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. +262,000

The Access Board was established by section 502 of the Rehabilitation Act of 1973 with the primary mission of ensuring accessibility for people with disabilities. The Access Board is responsible for developing guidelines under the Americans with Disabilities Act, the Architectural Barriers Act, and the Telecommunications Act. The Access Board is responsible for developing standards under section 508 of the Rehabilitation Act for accessible electronic and information technology used by federal agencies. The Access Board also enforces the Architectural Barriers Act and provides training and technical assistance on the guidelines and standards it develops.

The Access Board has been given responsibilities under the Help America Vote Act to serve on the Election Assistance Commission's Board of Advisors and Technical Guidelines Development Committee. Additionally, the Board maintains a small research program that develops technical assistance materials and provides information needed for rulemaking.

COMMITTEE RECOMMENDATION

The Committee recommends $8,190,000 for the operations of the Access Board, which is equal to the fiscal year 2017 enacted level and $262,000 greater than the budget request.

Federal Maritime Commission

SALARIES AND EXPENSES

Appropriation, fiscal year 2017....................... $27,490,000

Budget request, fiscal year 2018...................... 26,149,000

Recommended in the bill............................... 27,490,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. +1,341,000

Established in 1961, the Federal Maritime Commission (FMC) is an independent government agency, responsible for the regulation of oceanborne transportation in the foreign commerce of the United States. The Federal Maritime Commission monitors ocean common carriers, marine terminal operators, conferences, ports, and ocean transportation intermediaries to ensure they maintain just and reasonable practices. Among other activities, FMC also maintains a trade monitoring and enforcement program, monitors the laws and practices of foreign governments and their impacts on shipping conditions in the U.S., and enforces special regulatory requirements as they apply to controlled carriers.

The principal shipping statutes administered by the FMC are the Shipping Act of 1984 (46 U.S.C. 40101-41309), the Foreign Shipping Practices Act of 1988 (46 U.S.C. 42301-42307), Section 19 of the Merchant Marine Act, 1920 (46 U.S.C. 42101-42109), Public Law 89-777 (46 U.S.C. 44101-44106).

COMMITTEE RECOMMENDATION

The Committee recommends $27,490,000 for the Federal Maritime Commission. This amount is equal to the fiscal year 2017 enacted level, and $1,341,000 above the budget request. Of the funds provided, not less than $552,024 is available for the Office of Inspector General.

National Railroad Passenger Corporation (Amtrak)

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

Appropriation, fiscal year 2017....................... $23,274,000

Budget request, fiscal year 2018...................... 23,274,000

Recommended in the bill............................... 23,274,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. - - -

The Amtrak Inspector General is an independent, objective unit responsible for detecting and preventing fraud, waste, abuse, and violations of law and for promoting economy, efficiency and effectiveness at Amtrak.

COMMITTEE RECOMMENDATION

The Committee recommends $23,274,000 for Amtrak's Office of Inspector General (Amtrak OIG), which is equal to the fiscal year 2017 enacted level and the budget request. The recommended level will allow Amtrak OIG to undertake audits, evaluations, and investigations and will ensure the OIG's effective oversight of Amtrak's programs and operations.

The OIG's efforts have resulted in valuable studies and recommendations for this Committee and for the Corporation that have yielded cost savings and management improvements. These studies have been in a number of areas, including food and beverage service, capital planning, overtime, and fraud. In addition, Amtrak OIG has been instrumental in developing an audit process to review invoices and identifying overpayments.

National Transportation Safety Board

SALARIES AND EXPENSES

Appropriation, fiscal year 2017....................... $106,000,000

Budget request, fiscal year 2018...................... 105,170,000

Recommended in the bill............................... 106,000,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. +830,000

Initially established along with the Department of Transportation (DOT), the National Transportation Safety Board (NTSB) commenced operations on April 1, 1967, as an independent federal agency charged by Congress with investigating every civil aviation accident in the United States, as well as significant accidents in other modes of transportation-- railroad, highway, marine and pipeline--and issuing safety recommendations aimed at preventing future accidents. Although it has always operated independently, the NTSB relied on the DOT for funding and administrative support until the Independent Safety Board Act of 1974 (Public Law 93-633) severed all ties between the two organizations effective April of 1975.

In addition to its investigatory duties, the NTSB is responsible for maintaining the government's database of civil aviation accidents and conducting special studies of transportation safety issues of national significance. Furthermore, in accordance with the provisions of international treaties, the NTSB supplies investigators to serve as U.S. Accredited Representatives for aviation accidents overseas involving U.S.-registered aircraft, or involving aircraft or major components of U.S. manufacture. The NTSB also serves as the court of appeals for any airman, mechanic or mariner whenever certificate action is taken by the Administrator of the Federal Aviation Administration (FAA) or the U.S. Coast Guard Commandant, or when civil penalties are assessed by the FAA. In addition, the NTSB operates the NTSB Academy in Ashburn, Virginia.

COMMITTEE RECOMMENDATION

The Committee recommends $106,000,000 for the salaries and expenses of the NTSB, which is equal to the fiscal year 2017 enacted level and $830,000 greater than the budget request.

NTSB Academy.--The agency is encouraged to continue to seek additional opportunities to lease out, or otherwise generate revenue from the NTSB Academy, so that the agency can appropriately focus its resources on the important investigative work that is central to the agency's mission. In addition, the agency is again directed to submit detailed information on the costs associated with the NTSB Academy, as well as the revenue the facility is expected to generate, as part of the fiscal year 2019 budget request.

Neighborhood Reinvestment Corporation

PAYMENT TO THE NEIGHBORHOOD REINVESTMENT CORPORATION

Appropriation, fiscal year 2017....................... $140,000,000

Budget request, fiscal year 2018...................... 27,400,000

Recommended in the bill............................... 140,000,000

Bill compared with:

Appropriation, fiscal year 2017................... - - -

Budget request, fiscal year 2018.................. +112,600,000

The Neighborhood Reinvestment Corporation (NRC) was created by the Neighborhood Reinvestment Corporation Act (title VI of the Housing and Community Development Amendments of 1978). Neighborhood Reinvestment Corporation now operates under the trade name `NeighborWorks America.' NeighborWorks America helps local communities establish working partnerships between residents and representatives of the public and private sectors. These partnership-based organizations are independent, tax-exempt, community-based nonprofit entities, often referred to as NeighborWorks organizations.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $140,000,000 for fiscal year 2018, which is equal to the fiscal year 2017 enacted level and $112,600,000 above the budget request.

Surface Transportation Board

SALARIES AND EXPENSES

Appropriation, fiscal year 2017....................... $37,000,000

Budget request, fiscal year 2018...................... 37,100,000

Recommended in the bill............................... 37,100,000

Bill compared with:

Appropriation, fiscal year 2017................... +100,000

Budget request, fiscal year 2018.................. - - -

The Surface Transportation Board (STB) was created in the Interstate Commerce Commission Termination Act of 1995 and is the successor agency to the Interstate Commerce Commission. The STB is an economic regulatory and adjudicatory body charged by Congress with resolving railroad rate and service disputes and reviewing proposed railroad mergers, as the regulation of other surface transportation carriers, including intercity bus industry and surface pipeline carriers, and household-good carriers. The Surface Transportation Board Reauthorization Act of 2015 (P.L. 114-110) established the Board as a wholly independent agency and expanded the Board's membership from three to five Board Members.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $37,100,000 for fiscal year 2018, which is $100,000 more than the fiscal year 2017 enacted level and equal to the budget request. The STB is estimated to collect $1,250,000 in fees, which will offset the appropriation for a total program cost of $35,850,000.

United States Interagency Council on Homelessness

OPERATING EXPENSES

Appropriation, fiscal year 2017....................... $3,600,000

Budget request, fiscal year 2018...................... 570,000

Recommended in the bill............................... 570,000

Bill compared with:

Appropriation, fiscal year 2017................... -3,030,000

Budget request, fiscal year 2018.................. - - -

The mission of the United States Interagency Council on Homelessness (USICH) is to coordinate multi-agency Federal response to homelessness.

COMMITTEE RECOMMENDATION

The Committee recommends $570,000 for the shut-down costs of the United States Interagency Council on Homelessness. This is $3,030,000 below the fiscal year 2017 enacted level and the same as the budget request. The Committee encourages the Administration to continue interagency outreach on homelessness strategies within available resources.

TITLE IV--GENERAL PROVISIONS, THIS ACT

(INCLUDING RESCISSIONS)

Section 401 prohibits pay and other expenses for non- Federal parties intervening in regulatory or adjudicatory proceedings.

Section 402 prohibits obligations beyond the current fiscal year and prohibits transfers of funds unless expressly so provided herein.

Section 403 limits consulting service expenditures in procurement contracts to those contained in the public record.

Section 404 prohibits employee training not directly related to the performance of official duties.

Section 405 specifies requirements for reprogramming funds.

Section 406 provides that fifty percent of unobligated balances for salaries and expenses may remain available for certain purposes, subject to the approval of the House and Senate Committees on Appropriations.

Section 407 prohibits the use of funds for any project that seeks to use the power of eminent domain, unless eminent domain is employed only for a public use.

Section 408 prohibits funds from being transferred to any department, agency, or instrumentality of the U.S. Government, except where transfer authority is provided in this Act.

Section 409 prohibits funds in this Act from being used to permanently replace an employee intent on returning to his or her past occupation after completion of military service.

Section 410 prohibits funds in this Act from being used unless the expenditure is in compliance with the Buy American Act.

Section 411 prohibits funds from being appropriated or made available to any person or entity that has been convicted of violating the Buy American Act.

Section 412 prohibits funds for first-class airline accommodations in contravention of sections 301-10.122 and 301- 10.123 of title 41 CFR.

Section 413 prohibits funds from being used for the approval of a new foreign air carrier permit or exemption application if that approval would contravene United States law or Article 17 bis of the U.S.-E.U.-Iceland-Norway Air Transport Agreement.

Section 414 restricts the number of employees that agencies funded in this Act may send to international conferences.

Section 415 caps the amount of fees the Surface Transportation Board can charge and collect for rate or practice complaints filed at the amount authorized for court civil suit filing fees.

Section 416 rescinds all unobligated balances from various salaries and expenses accounts.

Section 417 prohibits funds from being used to maintain or establish computer networks unless such networks block the viewing, downloading, or exchange of pornography.

Section 418 establishes a spending reduction account.

Continues with Part 7 of 8

Myron Struck, editor, Targeted News Service, Springfield, Va., 703/304-1897; [email protected]; http://www.targetednews.com