HOUSING PRESERVATION GRANTS FOR REPLACEMENT OF HOUSING.

SEC. 711. HOUSING PRESERVATION GRANTS FOR REPLACEMENT OF HOUSING.Section 533 of the Housing Act of 1949 (42 U.S.C. 1490m) is amended— (1) in subsection (a)— (A) by inserting “or replace” after “;rehabilitate” each place it appears; and (B) in the second sentence, by inserting “or replaced” after “rehabilitated”; (2) in subsection (b)— (A) by striking “Rehabilitation programs” and inserting “Preservation programs”; (B) in paragraph (3), by inserting “or replacement” after “rehabilitation” each place it appears; (C) in paragraph (4), by striking “repair and rehabilitation” and inserting “repair, rehabilitation, and replacement”; (D) by redesignating paragraphs (2) through (6) (as amended by this paragraph) as paragraphs (3) through (7), respectively; and (E) by inserting after paragraph (1) the following new paragraph: “(2) be used to provide loans or grants, not to exceed $15,000 per unit, to owners of single family housing to replace existing housing if repair or rehabilitation of the housing is determined by the Secretary not to be practicable and the owner of the housing is unable to afford a loan under section 502 for replacement housing;”; (3) in the first sentence of subsection (c)(1), by striking “rehabilitation grant funds” and inserting “grant funds under this section”; and (4) in subsection (d)— 106 STAT. 3841 (A) in paragraph (1), by striking “rehabilitation pro-gram” and inserting “preservation program”; (B) in paragraphs (3)(A), (3)(B), and (3)(1), by striking “repair and rehabilitation” each place it appears and inserting “repair, rehabilitation, and replacement”; (C) in paragraph (4), by inserting “, or replacement,” after “repair and rehabilitation”; and (D) by adding at the end the following new paragraph: “(5) A grantee may use housing preservation grant funds under this section for replacement housing only after providing documentation to the Secretary that— “(A) the existing housing is in such poor condition that rehabilitation is not economically feasible; “(B) the owner of the housing lacks the income or repayment ability necessary to qualify for a loan under section 502; and “(C) the grantee will extend assistance to the owner of the housing under terms that the owner can afford.”.