DESIGNATION OF UNDERSERVED AREAS AND RESERVATION OF ASSISTANCE.

SEC. 705. DESIGNATION OF UNDERSERVED AREAS AND RESERVATION OF ASSISTANCE. (a) Reauthorization of Designation.—Section 509(f) of the Housing Act of 1949 (42 U.S.C. 1479(D) is amended— (1) in paragraph (1), by striking “in each of fiscal years 1991 and 1992” and inserting “in each fiscal year”; (2) in paragraph (2), by inserting at the end the following new flush sentence: “In designating underserved areas under paragraph (1), in each fiscal year the Secretary shall designate not less than 5 counties or communities that contain tribal allotted or Indian trust land.”; and (3) in paragraph (4), by striking “an amount equal to 3.5 percent in fiscal year 1991 and 5.0 percent in fiscal year 1992” and inserting “an amount equal to 5.0 percent in fiscal years 1993 and 1994”. (b) Definition of Colonias.—Section 509(0(8) of the Housing Act of 1949 (42 U.S.C. 1479(f)(8)) is amended— (1) by striking subparagraph (C); (2) by redesignating subparagraph (D) as subparagraph (C); and (3) by striking subparagraph (E) and inserting the following new subparagraph: “(D) was in existence as a colonia before the date of the enactment of the Cranston-Gonzalez National Afford-able Housing Act.”. (c) Colonias Refinements.—Section 509(f)(4)(B)(ii) of the Housing Act of 1949 (42 U.S.C. 1479(f)(4)(B)(ii)) ¡8 amended by inserting before “a colonia”, the following “, or in close proximity to, and serving the residents of,”.