106 STAT. 3840 PUBLIC LAW 102-550—OCT. 28, 1992

subsection. The Secretary shall make reasonable efforts
to ensure that pooled funds are distributed under this
subparagraph in an equitable manner.

"(B) RETURN TO THE STATES.—After funds have been
pooled and obligated for 30 days, the Secretary shall return
any remaining funds to the States on a proportional basis
for use by any other eligible entity as defined in this
section.".

42 use i486 (b) EFFECTIVE DATE.—The amendment made by subsection

note. (a)(5) ghaii take effect on October 1, 1993, and shall apply to

fiscal year 1994 and each fiscal year thereafter.
SEC. 709. CONSIDERATION OF CERTAIN AREAS AS RURAL AREAS.

Section 520 of the Housing Act of 1949 (42 U.S.C. 1490) is
amended by adding at the end the following new sentence: "Notwith-
standing any other provision of this section, the city of Plainyiew,
Texas, shall be considered a rural area for purposes of this title.".

SEC. 710. PERMANENT AUTHORITY FOR SECTION 523.

Section 523 of the Housing Act of 1949 (42 U.S.C. 1490c)
is amended—

(1) in subsection (bXIXA), by inserting after "efforts" the
following: ", including the repair of units financed under section
502 that are being held in inventory"; and

(2) by striking subsection (f).

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 reha-
bilitation" 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 (cXD, by striking
"rehabilitation grant funds" and inserting "grant funds under
this section"; and

(4) in subsection (d)—