REFORM OF HEADQUARTERS RESERVE.

SEC. 104. REFORM OF HEADQUARTERS RESERVE. (a) Funding Categories.— Section 213(d)(4) of the Housing and Community Development Act of 1974 is amended to read as follows: “(4) (A) Notwithstanding any other provision of law, with respect to fiscal years beginning after September 30, 1990, the Secretary may retain not more than 5 percent of the financial assistance that becomes available under programs described in subsection (a)(1) during any fiscal year. Any such financial assistance that is retained shall be available for subsequent allocation to specific areas and communities, and may only be used for— “(i) unforeseen housing needs resulting from natural and other disasters; “(ii) housing needs resulting from emergencies, as certified by the Secretary, other than such disasters; “(iii) housing needs resulting from the settlement of litigation; and “(iv) housing in support of desegregation efforts. “(B) Any amounts retained in any fiscal year under subparagraph (A) that are unexpended at the end of such fiscal year shall remain available for the following fiscal year under the program under subsection (a)(1) from which the amount was retained. Such amounts shall be allocated on the basis of the formula under subsection (d)(1).”. (b) Effective Date.—Any assistance made available under section 213(d)(4) of the Housing and Community Development Act of 1974 before October 1, 1990, or pursuant to a commitment for such assistance entered into before such date, shall be governed by the provisions of section 213(d)(4) as such section existed before the date of the enactment of this Act. (c) Indian Housing.—In accordance with section 201(b)(2) of the United States Housing Act of 1937, the amendment made by subsection (a) and the provisions of subsection (b) 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.