The Balanced Budget Downpayment Act, I (110 Stat. 26).

PUBLIC LAW 104–99—JAN. 26, 1996

THE BALANCED BUDGET DOWNPAYMENT
ACT, I

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110 STAT. 26

PUBLIC LAW 104–99—JAN. 26, 1996

Public Law 104–99
104th Congress
An Act
Jan. 26, 1996
[H.R. 2880]
The Balanced
Budget
Downpayment
Act, I.

Making appropriations for fiscal year 1996 to make a downpayment toward a
balanced budget, and for other purposes.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That the
following sums are hereby appropriated, out of any money in the
Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units of
Government for the fiscal year 1996, and for other purposes, namely:
TITLE I
SEC. 101. (a) Such amounts as may be necessary under the
authority and conditions provided in the applicable appropriations
Act for the fiscal year 1995 including the authority and conditions
provided in emergency supplemental appropriations Acts for fiscal
year 1995 for continuing projects or activities, except for those
projects and activities provided for in Public Law 104–91 and Public
Law 104–92, including the costs of direct loans and loan guarantees
(not otherwise specifically provided for in this Act) which were
conducted in the fiscal year 1995 and for which appropriations,
funds, or other authority would be available in the following appropriations Act as passed each House, excluding conference reports:
The Department of the Interior and Related Agencies
Appropriations Act, 1996; and
The Departments of Labor, Health and Human Services,
and Education, and Related Agencies Appropriations Act, 1996:
Provided, That whenever the amount which would be made available or the authority which would be granted in these Acts is
greater than that which would be available or granted under current
operations, the pertinent project or activity shall be continued at
a rate for operations not exceeding the current rate.
(b) Whenever the amount which would be made available or
the authority which would be granted under an Act listed in this
section as passed by the House as of the date of enactment of
this Act, is different from that which would be available or granted
under such Act as passed by the Senate as of the date of enactment
of this Act, the pertinent project or activity shall be continued
at a rate for operations not exceeding the current rate or the
rate permitted by the action of the House or the Senate, whichever
is lower, under the authority and conditions provided in the
applicable appropriations Act for the fiscal year 1995: Provided,
That where an item is not included in either version or where
an item is included in only one version of the Act as passed

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 27

by both Houses as of the date of enactment of this Act, the pertinent
project or activity shall not be continued except as provided for
in section 111 under the appropriation, fund, or authority granted
by the applicable appropriations Act for the fiscal year 1995 and
under the authority and conditions provided in the applicable appropriations Act for the fiscal year 1995.
(c) Whenever an Act listed in this section has been passed
by only the House or only the Senate as of the date of enactment
of this Act, the pertinent project or activity shall be continued
under the appropriation, fund, or authority granted by the one
House at a rate for operations not exceeding the current rate
or the rate permitted by the action of the one House, whichever
is lower, and under the authority and conditions provided in the
applicable appropriations Act for the fiscal year 1995: Provided,
That where an item is funded in the applicable appropriations
Act for the fiscal year 1995 and not included in the version passed
by the one House as of the date of enactment of this Act, the
pertinent project or activity shall not be continued except as provided for in section 111 under the appropriation, fund, or authority
granted by the applicable appropriations Act for the fiscal year
1995 and under the authority and conditions provided in the
applicable appropriations Act for the fiscal year 1995.
SEC. 102. Appropriations made by section 101 shall be available
to the extent and in the manner which would be provided by
the pertinent appropriations Act.
SEC. 103. No appropriations or funds made available or authority granted pursuant to section 101 shall be used to initiate or
resume any project or activity for which appropriations, funds,
or other authority were not available during the fiscal year 1995.
SEC. 104. No provision which is included in an appropriations
Act enumerated in section 101 but which was not included in
the applicable appropriations Act for fiscal year 1995 and which
by its terms is applicable to more than one appropriation, fund,
or authority shall be applicable to any appropriation, fund, or
authority provided in this title of this Act.
SEC. 105. Appropriations made and authority granted pursuant
to this title of this Act shall cover all obligations or expenditures
incurred for any program, project, or activity during the period
for which funds or authority for such project or activity are available
under this Act.
SEC. 106. Unless otherwise provided for in this title of this
Act or in the applicable appropriations Act, appropriations and
funds made available and authority granted pursuant to this title
of this Act shall be available until (a) enactment into law of an
appropriation for any project or activity provided for in this title
of this Act, or (b) the enactment into law of the applicable appropriations Act without any provision for such project or activity, or
(c) March 15, 1996, whichever first occurs.
SEC. 107. This title of this Act shall be implemented so that
only the most limited funding action of that permitted in this
title of this Act shall be taken in order to provide for continuation
of projects and activities.
SEC. 108. Expenditures made pursuant to this title of this
Act shall be charged to the applicable appropriation, fund, or
authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law.

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Coverage.

Termination
date.

110 STAT. 28

Furloughs.

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PUBLIC LAW 104–99—JAN. 26, 1996
SEC. 109. No provision in the appropriations Act for the fiscal
year 1996 referred to in section 101 of this Act that makes the
availability of any appropriation provided therein dependent upon
the enactment of additional authorizing or other legislation shall
be effective before the date set forth in section 106(c) of this Act.
SEC. 110. Appropriations and funds made available by or
authority granted pursuant to this title of this Act may be used
without regard to the time limitations for submission and approval
of apportionments set forth in section 1513 of title 31, United
States Code, but nothing herein shall be construed to waive any
other provision of law governing the apportionment of funds.
SEC. 111. Notwithstanding any other provision of this title
of this Act, except section 106, whenever an Act listed in section
101 as passed by both the House and the Senate as of the date
of enactment of this Act, does not include funding for an ongoing
project or activity for which there is a budget request, or whenever
an Act listed in section 101 has been passed by only the House
or only the Senate as of the date of enactment of this Act, and
an item funded in fiscal year 1995 is not included in the version
passed by the one House, or whenever the rate for operations
for an ongoing project or activity provided by section 101 for which
there is a budget request would result in the project or activity
being significantly reduced, the pertinent project or activity may
be continued under the authority and conditions provided in the
applicable appropriations Act for the fiscal year 1995 by increasing
the rate for operations provided by section 101 to a rate for operations not to exceed one that provides the minimal level that
would enable existing activities to continue. No new contracts or
grants shall be awarded in excess of an amount that bears the
same ratio to the rate for operations provided by this section as
the number of days covered by this title of this Act bears to
366. For the purposes of this title of this Act, the minimal level
means a rate for operations that is reduced from the current rate
by 25 percent.
SEC. 112. Notwithstanding any other provision of this title
of this Act, except section 106, whenever the rate for operations
for any continuing project or activity provided by section 101 or
section 111 for which there is a budget request would result in
a furlough of Government employees, that rate for operations may
be increased to the minimum level that would enable the furlough
to be avoided. No new contracts or grants shall be awarded in
excess of an amount that bears the same ratio to the rate for
operations provided by this section as the number of days covered
by this Act bears to 366: Provided, That the first sentence of
section 112 shall not apply except to furloughs that exceed one
workday per pay period for the affected workforce during the period
of January 26, 1996 through March 15, 1996.
SEC. 113. Notwithstanding any other provision of this title
of this Act, except sections 106 and 111, for those programs that
had high initial rates of operation or complete distribution of funding at the beginning of the fiscal year in fiscal year 1995 because
of distributions of funding to States, foreign countries, grantees,
or others, similar distributions of funds for fiscal year 1996 shall
not be made and no grants shall be awarded for such programs
funded by this title of this Act that would impinge on final funding
prerogatives.

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 29

SEC. 114. Notwithstanding any other provision of this title
of this Act, except section 106, any distribution of funding under
the Rehabilitation Services and Disability Research account in the
Department of Education may be made up to an amount that
bears the same ratio to the rate for operation for this account
provided by this title of this Act as the number of days covered
by this title of this Act bears to 366.
SEC. 115. Notwithstanding any other provision of this Act,
except section 106, the rate for operations of the following projects
or activities shall be only the minimum necessary to accomplish
orderly termination:
Child Development Associate Scholarships in the Department of Health and Human Services;
Dependent Care Planning and Development in the Department of Health and Human Services;
Law Related Education in the Department of Education;
Dropout Prevention Demonstrations in the Department of
Education;
Aid for Institutional Development—Endowment Grants in
the Department of Education;
Aid for Institutional Development—Evaluation in the
Department of Education;
Native Hawaiian and Alaska Native Cultural Arts;
Innovative Projects in Community Service in the Department of Education;
Cooperative Education in the Department of Education;
and
Douglas Teacher Scholarships in the Department of Education.
SEC. 116. COMPENSATION AND RATIFICATION OF AUTHORITY.—
(a) Any Federal employees furloughed as a result of a lapse in
appropriations, if any, after midnight November 13, 1995, until
the enactment of this Act shall be compensated at their standard
rate of compensation for the period during which there was a
lapse in appropriations.
(b) All obligations incurred in anticipation of the appropriations
made and the authority granted by this title of this Act for the
purposes of maintaining the essential level of activity to protect
life and property and bring about orderly termination of Government functions are hereby ratified and approved if otherwise in
accord with the provisions of this title of this Act.
SEC. 117. Notwithstanding any other provision of this title
of this Act, except section 106, upon enactment of this Act any
new grants or contracts for the following programs shall be made
at a level not to exceed a rate of 75 per centum of prior monthly
awards:
Department of Health and Human Services:
Health Resources and Services Administration:
Health Resources and Services:
Trauma Care
Health Care Facilities
Assistant Secretary for Health:
Office of the Assistant Secretary for
Health:
National Vaccine Program
Health Care Reform Data Analysis
National AIDS Program Office

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Furloughs.

110 STAT. 30

Financial aid.
20 USC 1070a
note.
Effective date.
40 USC 175 note.

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PUBLIC LAW 104–99—JAN. 26, 1996
Health Care Financing Administration:
Program Management:
Essential Access Community
Hospitals
Administration for Children and Families:
Children and Families Services Program:
Youth Gang Substance Abuse
Advisory Board on Child Abuse and
Neglect
Child Welfare Research
Social Services Research
Homeless Service Grants
Community Schools (crime trust fund)
Administration on Aging:
Aging Services Programs:
Pension Counseling
Federal Council on Aging
White House Conference on Aging
Department of Education:
Education for the Disadvantaged:
State School Improvement
School Improvement Programs:
Safe and Drug Free Schools and
Communities: National Program
Women’s Educational Equity
Bilingual and Immigrant Education:
Bilingual Education Support Services
Higher Education:
Faculty Development Fellowships
School, College, and University
Partnerships
Related Agencies:
Corporation for National and Community
Service:
Domestic Volunteer Service Programs,
Operating Expenses:
Senior Demonstration Program
National Education Standards and
Improvement Council.
SEC. 118. Notwithstanding any other provision of law or this
Act, upon enactment of this Act the Secretary of each cabinet
level department other than State, Defense, Ambassador to the
United Nations, and Central Intelligence shall not obligate a total
amount of funds for their individual official travel expenses for
fiscal year 1996 that would be greater than 110 per centum of
the average total amount of the individual official travel expenses
of the relevant departmental secretary for the fiscal years 1990
through 1995.
SEC. 119. Notwithstanding any other provision of law or of
this title of this Act, the maximum Pell Grant for which a student
shall be eligible under the Higher Education Act of 1965, as
amended, during award year 1996–1997 shall be at least $2,440.
SEC. 120. Notwithstanding any other provision of law, the
first proviso under the heading ‘‘Education for the disadvantaged’’
in title III of H.R. 2127, as passed by the House of Representatives,
shall take effect upon enactment of this Act.
SEC. 121. 501 FIRST STREET SE., DISTRICT OF COLUMBIA.

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 31

(a) DISPOSAL OF REAL PROPERTY.—
(1) IN GENERAL.—The Architect of the Capitol shall dispose
of by sale at fair market value all right, title, and interest
of the United States in and to the parcel of real property
described in paragraph (9), including all improvements to such
real property. Such disposal shall be made by quitclaim deed.
(2) HOUSE OFFICE BUILDING COMMISSION.—The Architect
of the Capitol shall carry out this section under the direction
of the House Office Building Commission.
(3) PROCEDURES.—Notwithstanding any other provision of
law, the disposal under paragraph (1) shall be made in accordance with such procedures as the Architect of the Capitol
determines appropriate.
(4) SENSE OF CONGRESS.—It is the sense of Congress that
the child care center of the House of Representatives should
remain in operation during the implementation of this section.
(5) TERMS AND CONDITIONS.—The deed of conveyance for
the property to be disposed of under paragraph (1) shall contain
such terms and conditions as the Architect of the Capitol determines are necessary to protect the interests of the United
States.
(6) DEPOSIT OF PROCEEDS.—All proceeds from the disposal
under paragraph (1) shall be deposited in the account established by subsection (b).
(7) ADVERTISING AND MARKETING.—The Architect of the
Capitol shall begin advertising and marketing the property
to be disposed of under paragraph (1) not later than 30 days
after the date of the enactment of this Act.
(8) LOCAL ZONING AND OCCUPANCY REQUIREMENTS.—Until
such date as the purchaser of the property to be disposed
of under paragraph (1) takes full occupancy of such property,
such property and the tenants of such property shall be deemed
to be in compliance with all applicable zoning and occupancy
requirements of the District of Columbia.
(9) PROPERTY DESCRIPTION.—The parcel of real property
referred to in paragraph (1) is the approximately 31,725 square
feet of land located at 501 First Street, SE., on square 736
S, Lot 801 (formerly part of Reservation 17) in the District
of Columbia. Such parcel is bounded by E Street, SE., to the
north, First Street, SE., to the east, New Jersey Avenue, SE.,
to the west, and Garfield Park to the south.
(b) SEPARATE ACCOUNT IN THE TREASURY.—
(1) ESTABLISHMENT.—There is established in the Treasury
of the United States a separate account which shall consist
of amounts deposited into the account by the Architect of the
Capitol under subsection (a).
(2) AVAILABILITY OF FUNDS.—Funds in the account established by paragraph (1) shall be available, in such amounts
as are specified in appropriations Acts, to the Architect of
the Capitol for—
(A) payment of expenses associated with relocating
the tenants of the property to be disposed of under subsection (a)(1);
(B) payment of expenses associated with renovating
facilities under the jurisdiction of the Architect for the
purpose of accommodating such tenants; and

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110 STAT. 32

PUBLIC LAW 104–99—JAN. 26, 1996
(C) reimbursement of expenses incurred for advertising
and marketing activities related to the disposal under subsection (a)(1) in a total amount of not to exceed $75,000.
Funds made available under this paragraph shall not be subject
to any fiscal year limitation.
(3) REPORTING OF TRANSACTIONS.—Receipts, obligations,
and expenditures of funds in the account established by paragraph (1) shall be reported in annual estimates submitted
to Congress by the Architect of the Capitol for the operation
and maintenance of the Capitol Buildings and Grounds.
(4) TERMINATION OF ACCOUNT.—Not later than 2 years
after the date of settlement on the property to be disposed
of under subsection (a)(1), the Architect of the Capitol shall
terminate the account established by paragraph (1) and all
amounts remaining in the account shall be deposited into the
general fund of the Treasury of the United States and credited
as miscellaneous receipts.
(c) AUTHORITY TO FURNISH STEAM AND CHILLED WATER.—
(1) IN GENERAL.—The Architect of the Capitol is authorized
to furnish steam and chilled water from the Capitol Power
Plant to the owner of the property to be disposed of under
subsection (a)(1) if the owner agrees to pay for such steam
and chilled water at market rates, as determined by the
Architect of the Capitol.
(2) AUTHORITY LIMITED TO EXISTING FACILITIES.—The
Architect of the Capitol may furnish steam and chilled water
under paragraph (1) only with respect to facilities which, on
the date of the enactment of this Act, are located on the
property to be disposed of under subsection (a)(1).
(3) PROCEEDS.—All proceeds from the sale of steam and
chilled water under paragraph (1) shall be deposited into the
general fund of the Treasury of the United States and credited
as miscellaneous receipts.
SEC. 122. Notwithstanding any other provision of this title
of this Act except section 106, such sums as necessary are hereby
appropriated for all projects and activities funded under the account
heading ‘‘Office for Civil Rights’’ under the Office of the Secretary
in the Department of Health and Human Services at a rate for
operations not to exceed an annual rate for new obligational authority of $16,153,000 for general funds together with not to exceed
an annual rate for new obligational authority of $3,314,000 to
be transferred and expended as authorized by section 201(g)(1)
of the Social Security Act from the Hospital Insurance Trust Fund
and the Supplemental Medical Insurance Trust Fund.
SEC. 123. Activities necessary to effect the following program
eliminations and transfers of selected functions are funded under
the terms and conditions and at a rate of operations, notwithstanding any other provision of this title of this Act, provided for in
the conference report and joint explanatory statement of the
Committee of Conference (House Report 104–402) on the Department of the Interior and Related Agencies Appropriations Act,
1996 (H.R. 1977), as passed by the House of Representatives on
December 13, 1995:
All projects and activities under the account heading ‘‘Public Development’’ under the Pennsylvania Avenue Development
Corporation;

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 33

All projects and activities under the account heading
‘‘Mines and Minerals’’ under the Bureau of Mines in the Department of the Interior;
All activities related to the transfer of functions from the
Bureau of Mines under the account heading ‘‘Management of
Lands and Resources’’ under the Bureau of Land Management
in the Department of the Interior;
All activities related to the transfers of functions from
the Bureau of Mines and from the National Biological Service
under the account heading ‘‘Surveys, Investigations, and
Research’’ under the United States Geological Survey in the
Department of the Interior; and
All activities related to the transfer of functions from the
Bureau of Mines under the account heading ‘‘Fossil Energy
Research and Development’’ in the Department of Energy.
SEC. 124. Notwithstanding any other provision of this title
of this Act, the appropriations and funds made available and authority granted pursuant to the preceding section shall be available
until (a) enactment into law of an appropriation for any project
or activity provided for in that section, or (b) the enactment into
law of the applicable appropriations Act without any provision
for such project or activity, or (c) September 30, 1996, whichever
first occurs.
SEC. 125. Notwithstanding any other provision of this title
of this Act, except section 106, such amounts as may be necessary
are hereby appropriated to effect the sale of Weeks Island oil
from the Strategic Petroleum Reserve under the terms and conditions and at a rate of operations provided for in the conference
report and joint explanatory statement of the Committee of Conference (House Report 104–402) on the Department of the Interior
and Related Agencies Appropriations Act, 1996 (H.R. 1977), as
passed by the House of Representatives on December 13, 1995.
SEC. 126. Notwithstanding any other provision of this title
of this Act, such amounts as may be necessary are hereby appropriated under the authority and conditions provided in the
applicable appropriations Act for the fiscal year 1995 for continuing,
at a rate for operations provided for in the conference report and
joint explanatory statement of the Committee of Conference (House
Report 104–402) on the Department of the Interior and Related
Agencies Appropriations Act, 1996 (H.R. 1977), as passed by the
House of Representatives on December 13, 1995, for the following
projects or activities including the costs of direct loans and loan
guarantees (not otherwise specifically provided for in this Act) which
are conducted in the fiscal year 1995: all projects or activities
of the Indian Health Services, Indian Health Service Facilities,
Bureau of Indian Affairs, National Park Service, notwithstanding
any other provision of law, the United States Fish and Wildlife
Service, notwithstanding any other provision of law, and the Forest
Service, notwithstanding any other provision of law: Provided, That
appropriations and funds made available and authority granted
pursuant to this section shall be available until (a) enactment
into law of an appropriation for any project or activity provided
for in this section, or (b) the enactment into law of the applicable
appropriations Act without any provision for such project or activity,
or (c) March 15, 1996, whichever first occurs.
SEC. 127. Notwithstanding any other provision of this title
of this Act except section 106, projects and activities under the

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date.

Termination
date.

110 STAT. 34

Embryos.

2 USC 1611.
2 USC 1611 note.

Regulations.
Effective date.
16 USC 620c
note.
Floods.

PUBLIC LAW 104–99—JAN. 26, 1996
account heading ‘‘Salaries and expenses’’ under the National Labor
Relations Board shall be subject to the provisions of section 112
of Public law 104–56.
SEC. 128. None of the funds made available by Public Law
104–91 may be used for—
(1) the creation of a human embryo or embryos for research
purposes; or
(2) research in which a human embryo or embryos are
destroyed, discarded, or knowingly subjected to risk of injury
or death greater than that allowed for research on fetuses
in utero under 45 CFR 46.208(a)(2) and 42 U.S.C. 289g(b).
For purposes of this section, the phrase ‘‘human embryo or embryos’’
shall include any organism, not protected as a human subject under
45 CFR 46 as of the date of enactment of this Act, that is derived
by fertilization, parthenogenesis, cloning, or any other means from
one or more human gametes.
SEC. 129.TECHNICAL AMENDMENT TO PROHIBITION OF GRANTS
FOR 501(c)(4) ORGANIZATIONS ENGAGING IN LOBBYING ACTIVITIES.
(a) IN GENERAL.—Section 18 of the Lobbying Disclosure Act
of 1995 is amended by striking ‘‘award, grant, contract, loan, or
any other form’’ and inserting ‘‘award, grant, or loan’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect as if included in the Lobbying Disclosure Act
of 1995 on the date of the enactment of such Act.
SEC. 130. No funds appropriated under this or any other Act
shall be used to review or modify sourcing areas previously approved
under section 490(c)(3) of the Forest Resources Conservation and
Shortage Relief Act of 1990 (Public Law 101–382) or to enforce
or implement Federal regulations 36 CFR part 223 promulgated
on September 8, 1995. The regulations and interim rules in effect
prior to September 8, 1995 (36 CFR 223.48, 36 CFR 223.87, 36
CFR 223 Subpart D, 36 CFR 223 Subpart F, and 36 CFR 261.6)
shall remain in effect. The Secretary of Agriculture or the Secretary
of the Interior shall not adopt any policies concerning Public Law
101–382 or existing regulations that would restrain domestic
transportation or processing of timber from private lands or impose
additional accountability requirements on any timber. The Secretary
of Commerce shall extend until September 30, 1996, the order
issued under section 491(b)(2)(A) of Public Law 101–382 and shall
issue an order under section 491(b)(2)(B) of such law that will
be effective October 1, 1996.
SEC. 131. Notwithstanding any other provision of this Act,
an additional $2,000,000 is hereby appropriated for the National
Park Service, Park Service Construction for repair of flood damage
to the Chesapeake and Ohio Canal National Historical Park.
TITLE II
DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE
JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS
SEC. 201. (a) Such amounts as may be necessary under the
authority and conditions provided in the applicable appropriations
Act for the fiscal year 1995 for projects or activities, except for
those projects and activities provided for in Public Law 104–91
and Public Law 104–92, including the costs of direct loans and
loan guarantees (not otherwise specifically provided for in this

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 35

Act) at a rate for operations provided for in the conference report
and joint explanatory statement of the Committee of Conference,
House Report 104–378, on the Departments of Commerce, Justice,
and State, the Judiciary, and Related Agencies Appropriations Act,
1996 (H.R. 2076), as passed the House of Representatives on December 6, 1995, notwithstanding section 15 of the State Department
Basic Authorities Act of 1956, section 701 of the United States
Information and Educational Exchange Act of 1948, section 313
of the Foreign Relations Authorization Act, Fiscal Years 1994 and
1995 (Public Law 103–236), and section 53 of the Arms Control
and Disarmament Act: Provided, That, notwithstanding any other
provision of this title of this Act, the rate for operations only
for program administration and the continuation of grants awarded
in fiscal year 1995 and prior years of the Advanced Technology
Program of the National Institute of Standards and Technology,
and the rate for operations for the Ounce of Prevention Council,
Drug Courts, Global Learning and Observations to Benefit the
Environment, and for the Cops on the Beat Program may be
increased up to a level of 75 per centum of the final fiscal year
1995 appropriated amount: Provided further, That, under the previous proviso, no contracts or grants shall be awarded in excess
of an amount that bears the same ratio to the rate for operations
provided by the previous proviso as the number of days covered
by this Act bears to 366: Provided further, That any costs incurred
by a Department or agency funded under this subsection resulting
from personnel actions taken in response to funding reductions
resulting from this Act shall be absorbed within the total budgetary
resources available to such Department or agency: Provided further,
That the authority to transfer funds between appropriations
accounts as may be necessary to carry out the preceding proviso
is provided in addition to authorities provided elsewhere in this
subsection: Provided further, That funds to carry out the preceding
two provisos shall not be available for obligation or expenditure
except in compliance with established reprogramming procedures:
Provided further, That, notwithstanding any other provision of this
title of this Act, the amount of funds obligated or expended by
the Legal Services Corporation shall not exceed an amount that
bears the same ratio to the rate for operations available to the
Legal Services Corporation as the number of days covered by this
Act bears to 366: Provided further, That, notwithstanding any other
provision of this title of this Act, funding provided for Violent
Offender Incarceration and Truth in Sentencing Incentive Grants,
with the exception of funds available to States for incarceration
of criminal aliens and the Cooperative Agreement Program, shall
be withheld, pending enactment of revisions to subtitle A of title
II of the Violent Crime Control and Law Enforcement Act of 1994,
so as not to impinge upon final funding prerogatives: Provided
further, That, notwithstanding any other provision of this title
of this Act, sufficient funds shall be provided to continue the Office
of Inspector General of the United States Information Agency, to
be derived from funds otherwise available to the Office of Inspector
General of the Department of State.

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110 STAT. 36

PUBLIC LAW 104–99—JAN. 26, 1996
DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND
URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES
APPROPRIATIONS

38 USC 1920,
1923, 1955, 1982.

Termination
date.

Coverage.

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(b) Such amounts as may be necessary under the authority
and conditions provided in the applicable appropriations Act for
the fiscal year 1995 for continuing projects or activities, except
for those projects and activities provided for in Public Law 104–
91 and Public Law 104–92, including the costs of direct loans
and loan guarantees (not otherwise specifically provided for in
this Act) at a rate for operations provided for in the conference
report and joint explanatory statement of the Committee of Conference, House Report 104–384, on the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (H.R. 2099), as passed the House
of Representatives on December 7, 1995: Provided, That Senate
amendment 63 shall be disposed of in the manner passed by the
House on December 7, 1995, as if enacted into law: Provided further,
That, notwithstanding any other provision of this title of this Act,
the rate for operations for the Corporation for National and Community Service, the Community Development Financial Institutions
Fund, and the Office of Consumer Affairs may be increased up
to a level of 75 per centum of the fiscal year 1995 level: Provided
further, That, under the previous proviso, no new contracts or
grants shall be awarded in excess of an amount that bears the
same ratio to the rate for operations provided by the previous
proviso as the number of days covered by this Act bears to 366:
Provided further, That the penultimate proviso under the heading
‘‘General Operating Expenses’’ and sections 107 and 109 under
the heading ‘‘Administrative Provisions’’ in the Department of Veterans Affairs are effective to the extent and in the manner, notwithstanding any other provision of this Act, provided for in the conference report and joint explanatory statement of the Committee
of Conference (House Report 104–384) on the Departments of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (H.R. 2099), as passed by the
House of Representatives on December 7, 1995.
SEC. 202. Unless otherwise provided for in this title of this
Act or in the applicable appropriations Act, appropriations and
funds made available and authority granted pursuant to this title
of this Act shall be available until (a) the enactment into law
of an appropriation for any project or activity provided for in this
title of this Act, or (b) the enactment into law of the applicable
appropriations Act by both Houses without any provision for such
project or activity, or (c) March 15, 1996, whichever first occurs.
SEC. 203. Appropriations made and authority granted pursuant
to this title of this Act shall cover all obligations or expenditures
incurred for any program, project, or activity during the period
for which funds or authority for such project or activity are available
under this title of this Act.
SEC. 204. Expenditures made pursuant to this title of this
Act shall be charged to the applicable appropriation, fund, or
authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law.
SEC. 205. Appropriations made by section 201 shall be available
to the extent and in the manner which would be provided by
the pertinent appropriations Act.

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 37

SEC. 206. No provision in the appropriations Act for the fiscal
year 1996 referred to in section 201 of this Act that makes the
availability of any appropriation provided therein dependent upon
the enactment of additional authorizing or other legislation shall
be effective before the date set forth in section 202(c) of this Act.
SEC. 207. Appropriations and funds made available by or
authority granted pursuant to this title of this Act may be used
without regard to the time limitations for submission and approval
of apportionments set forth in section 1513 of title 31, United
States Code, but nothing herein shall be construed to waive any
other provision of law governing the apportionment of funds.
SEC. 208. Public Law 104–92 is amended by repealing title
II and by inserting in section 101(a) after the paragraph ending
with ‘‘under the Railroad Retirement Board;’’ the following paragraphs: ‘‘All activities, including administrative and beneficiary
travel expenses of all veterans benefit programs, necessary for
the provision of veterans benefits funded in the Department of
Veterans Affairs under the headings ‘Compensation and pensions’,
‘Readjustment benefits’, ‘Veterans insurance and indemnities’,
‘Guaranty and indemnity program account’, ‘Loan guaranty program
account’, ‘Direct loan program account’, ‘Education loan fund program account’, ‘Vocational rehabilitation loans program account’,
‘Native American veteran housing loan program account’, and
‘Administrative provisions, sec. 107’ to the extent and in the manner
and at the rate for operations, notwithstanding any other provision
of this joint resolution, provided for in the conference report and
joint explanatory statement of the Committee of Conference (House
Report 104–384) on the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (H.R. 2099), as passed by the House of Representatives on December 7, 1995;
‘‘All payments to contractors of the Veterans Health Administration of the Department of Veterans Affairs for goods and services
that directly relate to patient health and safety to the extent
and in the manner and at the rate for operations, notwithstanding
any other provision of this joint resolution, provided for in the
conference report and joint explanatory statement of the Committee
of Conference (House Report 104–384) on the Departments of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (H.R. 2099), as passed by the
House of Representatives on December 7, 1995;’’.
SEC. 209. Notwithstanding any other provision of this title
of this Act, except section 202, the amount made available to
the Securities and Exchange Commission, under the heading Salaries and Expenses, shall include, in addition to direct appropriations, the amount it collects under the fee rate and offsetting
collection authority contained in Public Law 103–352, which fee
rate and offsetting collection authority shall remain in effect during
the period of this title of this Act.
SEC. 210. Notwithstanding any other provision of this title
of this Act, except section 202, funds for the Environmental Protection Agency shall be made available in the appropriation accounts
which are provided in H.R. 2099 as reported on September 13,
1995.
SEC. 211. Public Law 104–91 is amended by inserting after
the words ‘‘the protection of the Federal judiciary’’ in section 101(a),
the following: ‘‘to the extent and in the manner and’’, and by

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Ante, p. 18.
Ante, p. 17.

15 USC 77f note.

18 USC 4043
note; 22 USC
1644 note; 28
USC 524, 524
note, 533 note,
534 note, 589a,
1930; 31 USC
1344; 42 USC
1973gg–2,
1973gg–2 note.

110 STAT. 38

Real property.
Mississippi.

Furloughs.

PUBLIC LAW 104–99—JAN. 26, 1996
inserting at the end of the paragraph containing those words,
but before the semicolon, the following: ‘‘: Provided, That, with
the exception of section 114, the General Provisions for the Department of Justice included in title I of the aforementioned conference
report are hereby enacted into law’’.
SEC. 212. Notwithstanding any other provision of law or regulation, the National Aeronautics and Space Administration shall convey, without reimbursement, to the State of Mississippi, all rights,
title and interest of the United States in the property known
as the Yellow Creek Facility and consisting of approximately 1,200
acres near the city of Iuka, Mississippi, including all improvements
thereon and also including any personal property owned by NASA
that is currently located on-site and which the State of Mississippi
requires to facilitate the transfer: Provided, That appropriated funds
shall be used to effect this conveyance: Provided further, That
$10,000,000 in appropriated funds otherwise available to the
National Aeronautics and Space Administration shall be transferred
to the State of Mississippi to be used in the transition of the
facility: Provided further, That each Federal agency with prior
contact to the site shall remain responsible for any and all environmental remediation made necessary as a result of its activities
on the site: Provided further, That in consideration of this conveyance, the National Aeronautics and Space Administration may
require such other terms and conditions as the Administrator deems
appropriate to protect the interests of the United States: Provided
further, That the conveyance of the site and the transfer of the
funds to the State of Mississippi shall occur not later than thirty
days from the date of enactment of this Act.
SEC. 213. Notwithstanding any other provision of this title
of this Act except section 202, projects and activities under the
account heading ‘‘Council on Environmental Quality and Office
of Environmental Quality’’ shall be subject to the provisions of
section 112 of Public Law 104–56.
SEC. 214. Notwithstanding any other provision of this title
of this Act except section 202, whenever the rate for operations
for any continuing project or activity provided by section 201 for
which there is a budget request would result in a furlough of
Government employees, that rate for operations may be increased
to the minimum level that would enable the furlough to be avoided.
No new contracts or grants shall be awarded in excess of an amount
that bears the same ratio to the rate for operations provided by
this section as the number of days covered by this Act bears to
366: Provided, That the first sentence of section 214 shall not
apply except to furloughs that exceed one workday per pay period
for the affected workforce during the period of January 26, 1996
through March 15, 1996.
TITLE III
FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
PROGRAMS APPROPRIATIONS
SEC. 301. Such amounts as may be necessary for programs,
projects, or activities provided for in the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 1996 (H.R.
1868), at a rate for operations and to the extent and in the manner
provided for in the conference report and joint explanatory state-

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 39

ment of the Committee of Conference (House Report 104–295) as
passed by the House of Representatives on October 31, 1995, as
if enacted into law, notwithstanding any other provision of this
title of this Act: Provided, That Senate amendment numbered 115
shall be disposed of as follows, as if enacted into law:
In lieu of the matter proposed by the Senate in amendment
numbered 115, insert the following:
‘‘AUTHORIZATION

OF POPULATION PLANNING

‘‘SEC. 518A. Notwithstanding section 526 of this Act, none
of the funds made available in this Act for population planning
activities or other population assistance pursuant to section 104(b)
of the Foreign Assistance Act or any other provision of law, or
funds made available in title IV of this Act as a contribution
to the United Nations Population Fund (UNFPA) may be obligated
or expended prior to July 1, 1996, unless such funding is expressly
authorized by law: Provided, That if such funds are not authorized
by law prior to July 1, 1996, funds appropriated in title II of
this Act for population planning activities or other population assistance may be made available for obligation and expenditure in
an amount not to exceed 65 percent of the total amount appropriated
or otherwise made available by Public Law 103–306 and Public
Law 104–19 for such activities for fiscal year 1995, and funds
appropriated in title IV of this Act as a contribution to the United
Nations Population Fund (UNFPA) may be made available for
obligation and expenditure in an amount not to exceed 65 percent
of the total amount appropriated or otherwise made available by
Public Law 103–306 and Public Law 104–19 for a contribution
to UNFPA for fiscal year 1995: Provided further, That, pursuant
to the previous proviso, such funds may be apportioned only on
a monthly basis, beginning July 1, 1996 and ending September
30, 1997, and such monthly apportionments may not exceed 6.67
percent of the total available for such activities: Provided further,
That notwithstanding any other provision of this Act, funds appropriated by this Act for the United Nations Population Fund
(UNFPA) shall remain available for obligation until September
30, 1997.’’.
SEC. 302. Unless otherwise provided for in this title of this
Act or in the applicable appropriations Act, appropriations and
funds made available and authority granted pursuant to this title
of this Act shall be available until (a) the enactment into law
of an appropriation for any project or activity provided for in this
title of this Act, or (b) the enactment into law of the applicable
appropriations Act by both Houses without any provision for such
project or activity, or (c) September 30, 1996, whichever first occurs.
SEC. 303. Appropriations made and authority granted pursuant
to this title of this Act shall cover all obligations or expenditures
incurred for any program, project, or activity during the period
for which funds or authority for such project or activity are available
under this title of this Act.
SEC. 304. Expenditures made pursuant to this title of this
Act shall be charged to the applicable appropriation, fund, or
authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law.

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110 STAT. 40

PUBLIC LAW 104–99—JAN. 26, 1996
TITLE IV
HOUSING AND URBAN DEVELOPMENT
SEC. 401. During fiscal year 1996, the Secretary of Housing
and Urban Development may manage and dispose of multifamily
properties owned by the Secretary, including the provision for
grants from the General Insurance Fund (12 U.S.C. 1735c) for
the necessary costs of rehabilitation and other related development
costs and multifamily mortgages held by the Secretary without
regard to any other provision of law.
PUBLIC AND ASSISTED HOUSING RENTS, INCOME ADJUSTMENTS, AND
PREFERENCES

Effective date.

42 USC 1437a.

42 USC 1437a
note.

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SEC. 402. (a) MINIMUM RENTS.—Notwithstanding sections 3(a)
and 8(o)(2) of the United States Housing Act of 1937, as amended,
effective for fiscal year 1996 and no later than October 30, 1995—
(1) public housing agencies shall require each family who
is assisted under the certificate or moderate rehabilitation program under section 8 of such Act to pay a minimum monthly
rent of not less than $25, and may require a minimum monthly
rent of up to $50;
(2) public housing agencies shall reduce the monthly assistance payment on behalf of each family who is assisted under
the voucher program under section 8 of such Act so that the
family pays a minimum monthly rent of not less than $25,
and may require a minimum monthly rent of up to $50;
(3) with respect to housing assisted under other programs
for rental assistance under section 8 of such Act, the Secretary
shall require each family who is assisted under such program
to pay a minimum monthly rent of not less than $25 for
the unit, and may require a minimum monthly rent of up
to $50; and
(4) public housing agencies shall require each family who
is assisted under the public housing program (including public
housing for Indian families) of such Act to pay a minimum
monthly rent of not less than $25, and may require a minimum
monthly rent of up to $50.
(b) ESTABLISHMENT OF CEILING RENTS.—
(1) Section 3(a)(2) of the United States Housing Act of
1937 is amended to read as follows:
‘‘(2) Notwithstanding paragraph (1), a public housing
agency may—
‘‘(A) adopt ceiling rents that reflect the reasonable
market value of the housing, but that are not less than
the monthly costs—
‘‘(i) to operate the housing of the agency; and
‘‘(ii) to make a deposit to a replacement reserve
(in the sole discretion of the public housing agency);
and
‘‘(B) allow families to pay ceiling rents referred to
in subparagraph (A), unless, with respect to any family,
the ceiling rent established under this paragraph would
exceed the amount payable as rent by that family under
paragraph (1).’’.
(2) REGULATIONS.—

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 41

(A) IN GENERAL.—The Secretary shall, by regulation,
after notice and an opportunity for public comment, establish such requirements as may be necessary to carry out
section 3(a)(2)(A) of the United States Housing Act of 1937,
as amended by paragraph (1).
(B) TRANSITION RULE.—Prior to the issuance of final
regulations under paragraph (1), a public housing agency
may implement ceiling rents, which shall be not less than
the monthly costs to operate the housing of the agency
and—
(i) determined in accordance with section 3(a)(2)(A)
of the United States Housing Act of 1937, as that
section existed on the day before enactment of this
Act;
(ii) equal to the 95th percentile of the rent paid
for a unit of comparable size by tenants in the same
public housing project or a group of comparable projects
totaling 50 units or more; or
(iii) equal to the fair market rent for the area
in which the unit is located.
(c) DEFINITION OF ADJUSTED INCOME.—Section 3(b)(5) of the
United States Housing Act of 1937 is amended—
(1) at the end of subparagraph (F), by striking ‘‘and’’;
(2) at the end of subparagraph (G), by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after subparagraph (G) the following:
‘‘(H) for public housing, any other adjustments to
earned income established by the public housing agency.
If a public housing agency adopts other adjustments to
income pursuant to subparagraph (H), the Secretary shall
not take into account any reduction of or increase in the
public housing agency’s per unit dwelling rental income
resulting from those adjustments when calculating the contributions under section 9 for the public housing agency
for the operation of the public housing.’’.
(d) REPEAL OF FEDERAL PREFERENCES.—
(1) PUBLIC HOUSING.—Section 6(c)(4)(A) of the United
States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A)) is
amended to read as follows:
‘‘(A) the establishment, after public notice and an
opportunity for public comment, of a written system of
preferences for admission to public housing, if any, that
is not inconsistent with the comprehensive housing affordability strategy under title I of the Cranston-Gonzalez
National Affordable Housing Act;’’.
(2) SECTION 8 EXISTING AND MODERATE REHABILITATION.—
Section 8(d)(1)(A) of the United States Housing Act of 1937
(42 U.S.C. 1437f(d)(1)(A)) is amended to read as follows:
‘‘(A) the selection of tenants shall be the function of
the owner, subject to the provisions of the annual contributions contract between the Secretary and the agency, except
that for the certificate and moderate rehabilitation programs only, for the purpose of selecting families to be
assisted, the public housing agency may establish, after
public notice and an opportunity for public comment, a
written system of preferences for selection that is not
inconsistent with the comprehensive housing affordability

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42 USC 1437a.

110 STAT. 42

42 USC 1437d.

42 USC 1437e.

42 USC 1437f.

42 USC 1437n.

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PUBLIC LAW 104–99—JAN. 26, 1996
strategy under title I of the Cranston-Gonzalez National
Affordable Housing Act;’’.
(3) SECTION 8 VOUCHER PROGRAM.—Section 8(o)(3)(B) of
the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(3)(B))
is amended to read as follows:
‘‘(B) For the purpose of selecting families to be assisted
under this subsection, the public housing agency may establish, after public notice and an opportunity for public comment, a written system of preferences for selection that
is not inconsistent with the comprehensive housing affordability strategy under title I of the Cranston-Gonzalez
National Affordable Housing Act.’’.
(4) SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL
REHABILITATION.—
(A) REPEAL.—Section 545(c) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 1437f note)
is amended to read as follows:
‘‘(c) [Reserved.]’’.
(B) PROHIBITION.—Notwithstanding any other provision of law, no Federal tenant selection preferences under
the United States Housing Act of 1937 shall apply with
respect to—
(i) housing constructed or substantially rehabilitated pursuant to assistance provided under section
8(b)(2) of the United States Housing Act of 1937 (as
such section existed on the day before October 1, 1983);
or
(ii) projects financed under section 202 of the Housing Act of 1959 (as such section existed on the day
before the date of enactment of the Cranston-Gonzalez
National Affordable Housing Act).
(5) RENT SUPPLEMENTS.—Section 101(k) of the Housing
and Urban Development Act of 1965 (12 U.S.C. 1701s(k)) is
amended to read as follows:
‘‘(k) [Reserved.]’’.
(6) CONFORMING AMENDMENTS.—
(A) UNITED STATES HOUSING ACT OF 1937.—The United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is
amended—
(i) in section 6(o), by striking ‘‘preference rules
specified in’’ and inserting ‘‘written system of preferences for selection established pursuant to’’;
(ii) in the second sentence of section 7(a)(2), by
striking ‘‘according to the preferences for occupancy
under’’ and inserting ‘‘in accordance with the written
system of preferences for selection established pursuant to’’;
(iii) in section 8(d)(2)(A), by striking the last sentence;
(iv) in section 8(d)(2)(H), by striking ‘‘Notwithstanding subsection (d)(1)(A)(i), an’’ and inserting ‘‘An’’;
(v) in section 16(c), in the second sentence, by
striking ‘‘the system of preferences established by the
agency pursuant to section 6(c)(4)(A)(ii)’’ and inserting
‘‘the written system of preferences for selection established by the public housing agency pursuant to section
6(c)(4)(A)’’; and

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 43

(vi) in section 24(e)—
(I) by striking ‘‘(e) EXCEPTIONS’’ and all that
follows through ‘‘The Secretary may’’ and inserting
the following:
‘‘(e) EXCEPTION TO GENERAL PROGRAM REQUIREMENTS.—The
Secretary may’’; and
(II) by striking paragraph (2).
(B) CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT.—Section 522(f)(6)(B) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704 et seq.)
is amended by striking ‘‘any preferences for such assistance
under section 8(d)(1)(A)(i)’’ and inserting ‘‘the written system of preferences for selection established pursuant to
section 8(d)(1)(A)’’.
(C) HOUSING AND COMMUNITY DEVELOPMENT ACT OF
1992.—Section 655 of the Housing and Community Development Act of 1992 (42 U.S.C. 13615) is amended by striking
‘‘the preferences’’ and all that follows up to the period
at the end and inserting ‘‘any preferences’’.
(D) REFERENCES IN OTHER LAW.—Any reference in any
Federal law other than any provision of any law amended
by paragraphs (1) through (5) of this subsection to the
preferences for assistance under section 6(c)(4)(A)(i),
8(d)(1)(A)(i), or 8(o)(3)(B) of the United States Housing
Act of 1937 (as such sections existed on the day before
the date of enactment of this Act) shall be considered
to refer to the written system of preferences for selection
established pursuant to section 6(c)(4)(A), 8(d)(1)(A), or
8(o)(3)(B), respectively, of the United States Housing Act
of 1937, as amended by this section.
(e) APPLICABILITY.—In accordance with section 201(b)(2) of the
United States Housing Act of 1937, the amendments made by
subsections (a), (b), (c), (d), and (f) of this section shall also apply
to public housing developed or operated pursuant to a contract
between the Secretary of Housing and Urban Development and
an Indian housing authority.
(f) This section shall be effective upon the enactment of this
Act and only for fiscal year 1996.

42 USC 1437v.

42 USC 1437f
note.

42 USC 1437d
note.

42 USC 1437aa
note.

Effective date.
42 USC 1437a
note.

SECTION 8 FAIR MARKET RENTALS, ADMINISTRATIVE FEES, AND DELAY
IN REISSUANCE

SEC. 403. (a) FAIR MARKET RENTALS.—The Secretary shall
establish fair market rentals for purposes of section 8(c)(1) of the
United States Housing Act of 1937, as amended, that shall be
effective for fiscal year 1996 and shall be based on the 40th percentile rent of rental distributions of standard quality rental housing
units. In establishing such fair market rentals, the Secretary shall
consider only the rents for dwelling units occupied by recent movers
and may not consider the rents for public housing dwelling units
or newly constructed rental dwelling units.
(b) ADMINISTRATIVE FEES.—Notwithstanding sections 8(q) (1)
and (4) of the United States Housing Act of 1937, for fiscal year
1996, the fee for each month for which a dwelling unit is covered
by an assistance contract under the certificate, voucher, or moderate
rehabilitation program under section 8 of such Act shall be equal
to the monthly fee payable for fiscal year 1995: Provided, That

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Effective date.

Applicability.

110 STAT. 44

PUBLIC LAW 104–99—JAN. 26, 1996
this subsection shall be applicable to all amounts made available
for such fees during fiscal year 1996, as if in effect on October
1, 1995.
(c) DELAY REISSUANCE OF VOUCHERS AND CERTIFICATES.—Notwithstanding any other provision of law, a public housing agency
administering certificate or voucher assistance provided under subsection (b) or (o) of section 8 of the United States Housing Act
of 1937, as amended, shall delay for 3 months, the use of any
amounts of such assistance (or the certificate or voucher representing assistance amounts) made available by the termination during
fiscal year 1996 of such assistance on behalf of any family for
any reason, but not later than October 1, 1996; with the exception
of any certificates assigned or committed to project-based assistance
as permitted otherwise by the Act, accomplished prior to the effective date of this Act.
REPEAL OF PROVISIONS REGARDING INCOME DISREGARDS

42 USC 12714.
Effective date.

42 USC 12714
note.
Effective date.

SEC. 404. (a) MAXIMUM ANNUAL LIMITATION ON RENT
INCREASES RESULTING FROM EMPLOYMENT.—Section 957 of the
Cranston-Gonzalez National Affordable Housing Act is hereby
repealed, retroactive to November 28, 1990, and shall be of no
effect.
(b) ECONOMIC INDEPENDENCE.—Section 923 of the Housing and
Community Development Act of 1992 is hereby repealed, retroactive
to October 28, 1992, and shall be of no effect.
SECTION 8 CONTRACT RENEWALS

42 USC 1437f
note.

42 USC 1437f
note.

42 USC 1437f.

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SEC. 405. (a) For fiscal year 1996 and henceforth, the Secretary
of Housing and Urban Development may use amounts available
for the renewal of assistance under section 8 of the United States
Housing Act of 1937, upon termination or expiration of a contract
for assistance under section 8 of such Act of 1937 (other than
a contract for tenant-based assistance and notwithstanding section
8(v) of such Act for loan management assistance), to provide assistance under section 8 of such Act, subject to the Section 8 Existing
Fair Market Rents, for the eligible families assisted under the
contracts at expiration or termination, which assistance shall be
in accordance with terms and conditions prescribed by the Secretary.
(b) Notwithstanding subsection (a) and except for projects
assisted under section 8(e)(2) of the United States Housing Act
of 1937 (as it existed immediately prior to October 1, 1991), at
the request of the owner, the Secretary shall renew for a period
of one year contracts for assistance under section 8 that expire
or terminate during fiscal year 1996 at the current rent levels.
(c) Section 8(v) of the United States Housing Act of 1937 is
amended to read as follows: ‘‘The Secretary may extend expiring
contracts entered into under this section for project-based loan
management assistance to the extent necessary to prevent displacement of low-income families receiving such assistance as of September 30, 1996.’’.
(d) Section 236(f) of the National Housing Act (12 U.S.C. 1715z–
1(f)) is amended:
(1) by striking the second sentence in paragraph (1) and
inserting in lieu thereof the following: ‘‘The rental charge for
each dwelling unit shall be at the basic rental charge or such

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 45

greater amount, not exceeding the lower of (i) the fair market
rental charge determined pursuant to this paragraph, or (ii)
the fair market rental established under section 8(c) of the
United States Housing Act of 1937 for the market area in
which the housing is located, as represents 30 per centum
of the tenant’s adjusted income.’’; and
(2) by striking paragraph (6).
EXTENSION OF HOME EQUITY CONVERSION MORTGAGE PROGRAM

SEC. 406. Section 255(g) of the National Housing Act (12 U.S.C.
1715z–20(g)) is amended—
(1) in the first sentence, by striking ‘‘September 30, 1995’’
and inserting ‘‘September 30, 1996’’; and
(2) in the second sentence, by striking ‘‘25,000’’ and inserting ‘‘30,000’’.
FHA SINGLE-FAMILY ASSIGNMENT PROGRAM REFORM

SEC. 407. (a) FORECLOSURE AVOIDANCE.—Except as provided
in subsection (e), the last sentence of section 204(a) of the National
Housing Act (12 U.S.C. 1710(a)) is amended by inserting before
the period the following: ‘‘: And provided further, That the Secretary
may pay insurance benefits to the mortgagee to recompense the
mortgagee for its actions to provide an alternative to the foreclosure
of a mortgage that is in default, which actions may include special
foreclosure, loan modification, and deeds in lieu of foreclosure, all
upon terms and conditions as the mortgagee shall determine in
the mortgagee’s sole discretion, within guidelines provided by the
Secretary, but which may not include assignment of a mortgage
to the Secretary: And provided further, That for purposes of the
preceding proviso, no action authorized by the Secretary and no
action taken, nor any failure to act, by the Secretary or the mortgagee shall be subject to judicial review.’’.
(b) AUTHORITY TO ASSIST MORTGAGORS IN DEFAULT.—Except
as provided in subsection (e), section 230 of the National Housing
Act (12 U.S.C. 1715u) is amended to read as follows:
‘‘AUTHORITY

TO ASSIST MORTGAGORS IN DEFAULT

‘‘SEC. 230. (a) PAYMENT OF PARTIAL CLAIM.—The Secretary
may establish a program for payment of a partial claim to a mortgagee that agrees to apply the claim amount to payment of a mortgage
on a 1- to 4-family residence that is in default. Any such payment
under such program to the mortgagee shall be made in the sole
discretion of the Secretary and on terms and conditions acceptable
to the Secretary, except that—
‘‘(1) the amount of the payment shall be in an amount
determined by the Secretary, not to exceed an amount equivalent to 12 of the monthly mortgage payments and any costs
related to the default that are approved by the Secretary;
and
‘‘(2) the mortgagor shall agree to repay the amount of
the insurance claim to the Secretary upon terms and conditions
acceptable to the Secretary.
The Secretary may pay the mortgagee, from the appropriate insurance fund, in connection with any activities that the mortgagee

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12 USC 1710
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PUBLIC LAW 104–99—JAN. 26, 1996
is required to undertake concerning repayment by the mortgagor
of the amount owed to the Secretary.
‘‘(b) ASSIGNMENT.—
‘‘(1) PROGRAM AUTHORITY.—The Secretary may establish
a program for assignment to the Secretary, upon request of
the mortgagee, of a mortgage on a 1- to 4-family residence
insured under this Act.
‘‘(2) PROGRAM REQUIREMENTS.—The Secretary may accept
assignment of a mortgage under a program under this subsection only if—
‘‘(A) the mortgage was in default;
‘‘(B) the mortgagee has modified the mortgage to cure
the default and provide for mortgage payments within the
reasonable ability of the mortgagor to pay, at interest rates
not exceeding current market interest rates; and
‘‘(C) the Secretary arranges for servicing of the
assigned mortgage by a mortgagee (which may include
the assigning mortgagee) through procedures that the Secretary has determined to be in the best interests of the
appropriate insurance fund.
‘‘(3) PAYMENT OF INSURANCE BENEFITS.—Upon accepting
assignment of a mortgage under a program established under
this subsection, the Secretary may pay insurance benefits to
the mortgagee from the appropriate insurance fund, in an
amount that the Secretary determines to be appropriate, not
to exceed the amount necessary to compensate the mortgagee
for the assignment and any losses and expenses resulting from
the mortgage modification.
‘‘(c) PROHIBITION OF JUDICIAL REVIEW.—No decision by the Secretary to exercise or forego exercising any authority under this
section shall be subject to judicial review.
‘‘(d) SAVINGS PROVISION.—Any mortgage for which the mortgagor has applied to the Secretary, before the date of enactment
of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996,
for assignment pursuant to subsection (b) of this section as in
effect before such date of enactment shall continue to be governed
by the provisions of this section, as in effect immediately before
such date of enactment.
‘‘(e) APPLICABILITY OF OTHER LAWS.—No provision of this Act,
or any other law, shall be construed to require the Secretary to
provide an alternative to foreclosure for mortgagees with mortgages
on 1- to 4-family residences insured by the Secretary under this
Act, or to accept assignments of such mortgages.’’.
(c) APPLICABILITY OF AMENDMENTS.—Except as provided in subsection (e), the amendments made by subsections (a) and (b) shall
apply only with respect to mortgages insured under the National
Housing Act that are originated before October 1, 1995.
(d) REGULATIONS.—Not later than 60 days after the date of
enactment of this Act, the Secretary of Housing and Urban Development shall issue interim regulations to implement this section
and the amendments made by this section.
(e) EFFECTIVENESS AND APPLICABILITY.—If this Act is enacted
after the date of enactment of the Balanced Budget Act of 1995—
(1) subsections (a), (b), (c), and (d) of this section shall
not take effect; and

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PUBLIC LAW 104–99—JAN. 26, 1996

110 STAT. 47

(2) section 2052(c) of the Balanced Budget Act of 1995
is amended by striking ‘‘that are originated on or after October
1, 1995’’ and inserting in lieu thereof ‘‘that are originated
before, during, and after fiscal year 1996.’’.
This Act may be cited as ‘‘The Balanced Budget Downpayment
Act, I’’.
Approved January 26, 1996.

LEGISLATIVE HISTORY—H.R. 2880:
CONGRESSIONAL RECORD, Vol. 142 (1996):
Jan. 25, considered and passed House.
Jan. 26, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
Jan. 26, Presidential statement.

Æ

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