Native American Housing Assistance and Self-Determination Act Amendments of 1997

Summary: Native American Housing Assistance and Self-Determination Act Amendments of 1997 - Makes amendments to the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA), including: (1) setting forth a requirement for assistance to Indian families that are not low-income; (2) eliminating separate Indian housing plan requirements for small Indian tribes; (3) expanding the authority of the Secretary of Housing and Urban Development to review Indian housing plans; (4) revising provisions regarding review and audit by the Secretary; (5) prescribing an allocation formula with respect to certain Indian tribes; (6) excepting from the hearing requirement certain actions by the Secretary affecting grant amounts if the Secretary makes a determination that the failure of a recipient of assistance to comply substantially with any material provision of the Act is resulting, and would continue to result, in a continuing unauthorized expenditure of Federal funds; and (7) revising requirements regarding noncompliance by recipients because of technical incapacity to permit the provision of technical assistance if the recipient enters into a performance agreement with the Secretary (limits the period of such an agreement to one year). 
(Sec. 10) Amends the Internal Revenue Code to treat block grants and guarantees provided under the HOME Investment Partnerships Act or NAHASDA not as Federal subsidies, under specified circumstances, for the purposes of determining eligibility for the low-income housing credit. 
(Sec. 11) Amends NAHASDA to repeal the requirement regarding the certification of compliance with subsidy layering requirements with respect to housing assisted with grant amounts provided under the Act.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Native American 
Housing Assistance and Self-Determination Act Amendments of 1997''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Restriction on waiver authority.
Sec. 3. Organizational capacity; assistance to families that are not 
                            low-income.
Sec. 4. Elimination of waiver authority for small tribes.
Sec. 5. Expanded authority to review Indian housing plans.
Sec. 6. Oversight.
Sec. 7. Allocation formula.
Sec. 8. Hearing requirement.
Sec. 9. Performance agreement time limit.
Sec. 10. Block grants and guarantees not Federal subsidies for low-
                            income housing credit.
Sec. 11. Technical and conforming amendments.

SEC 2. RESTRICTION ON WAIVER AUTHORITY.

    Section 101(b)(2) of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4111(b)(2)) is amended by 
striking ``if the Secretary'' and all that follows before the period at 
the end and inserting the following: ``for a period of not more than 90 
days, if the Secretary determines that an Indian tribe has not complied 
with, or is unable to comply with, those requirements due to extreme 
circumstances beyond the control of the Indian tribe''.

SEC. 3. ORGANIZATIONAL CAPACITY; ASSISTANCE TO FAMILIES THAT ARE NOT 
              LOW-INCOME.

    (a) Organizational Capacity.--Section 102(c)(4) of the Native 
American Housing Assistance and Self-Determination Act (25 U.S.C. 
4112(c)(4)) is amended--
            (1) by redesignating subparagraphs (A) through (K) as 
        subparagraphs (B) through (L), respectively; and
            (2) by inserting before subparagraph (B), as redesignated 
        by paragraph (1) of this subsection, the following:
            ``(A) a description of the entity that is responsible for 
        carrying out the activities under the plan, including a 
        description of--
                    ``(i) the relevant personnel of the entity; and
                    ``(ii) the organizational capacity of the entity, 
                including--
                            ``(I) the management structure of the 
                        entity; and
                            ``(II) the financial control mechanisms of 
                        the entity;''.
    (b) Assistance to Families That Are Not Low-Income.--Section 102(c) 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4112) is amended by adding at the end the following:
            ``(6) Certain families.--With respect to assistance 
        provided by a recipient to Indian families that are not low-
        income families under section 201(b)(2), evidence that there is 
        a need for housing for each such family during that period that 
        cannot reasonably be met without such assistance.''.

SEC. 4. ELIMINATION OF WAIVER AUTHORITY FOR SMALL TRIBES.

    Section 102 of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4112) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).

SEC. 5. EXPANDED AUTHORITY TO REVIEW INDIAN HOUSING PLANS.

    Section 103(a)(1) of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4113(a)(1)) is amended--
            (1) in the first sentence, by striking ``limited''; and
            (2) by striking the second sentence.

SEC. 6. OVERSIGHT.

    (a) Repayment.--Section 209 of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4139) is 
amended to read as follows:

``SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING REQUIREMENT.

    ``If a recipient uses grant amounts to provide affordable housing 
under this title, and at any time during the useful life of the housing 
the recipient does not comply with the requirement under section 
205(a)(2), the Secretary shall take appropriate action under section 
401(a).''.
    (b) Audits and Reviews.--Section 405 of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 1465) is 
amended to read as follows:

``SEC. 405. REVIEW AND AUDIT BY SECRETARY.

    ``(a) Requirements Under Chapter 75 of Title 31, United States 
Code.--
            ``(1) In general.--An entity designated by an Indian tribe 
        as a housing entity shall be treated, for purposes of chapter 
        75 of title 31, United States Code, as a non-Federal entity 
        that is subject to the audit requirements that apply to non-
        Federal entities under that chapter.
            ``(2) Payment of costs.--
                    ``(A) In general.--The Secretary may arrange for, 
                and pay the cost of, any audit required under paragraph 
                (1).
                    ``(B) Withholding of amounts.--If the Secretary 
                pays for the cost of an audit under subparagraph (A), 
                the Secretary may withhold, from the assistance 
                otherwise payable under this Act, an amount sufficient 
                to pay for the reasonable costs of conducting an audit 
                that meets the applicable requirements of chapter 75 of 
title 31, United States Code, including, if appropriate, the reasonable 
costs of accounting services necessary to ensure that the books and 
records of the entity referred to in paragraph (1) are in such 
condition as is necessary to carry out the audit.
    ``(b) Additional Reviews and Audits.--
            ``(1) In general.--In addition to any audit under 
        subsection (a)(1), to the extent the Secretary determines such 
        action to be appropriate, the Secretary may conduct an audit of 
        a recipient in order to--
                    ``(A) determine whether the recipient--
                            ``(i) has carried out--
                                    ``(I) eligible activities in a 
                                timely manner; and
                                    ``(II) eligible activities and 
                                certification in accordance with this 
                                Act and other applicable law;
                            ``(ii) has a continuing capacity to carry 
                        out eligible activities in a timely manner; and
                            ``(iii) is in compliance with the Indian 
                        housing plan of the recipient; and
                    ``(B) verify the accuracy of information contained 
                in any performance report submitted by the recipient 
                under section 404.
            ``(2) Onsite visits.--To the extent practicable, the 
        reviews and audits conducted under this subsection shall 
        include onsite visits by the appropriate official of the 
        Department of Housing and Human Development.
    ``(c) Review of Reports.--
            ``(1) In general.--The Secretary shall provide each 
        recipient that is the subject of a report made by the Secretary 
        under this section notice that the recipient may review and 
        comment on the report during a period of not less than 30 days 
        after the date on which notice is issued under this paragraph.
            ``(2) Public availability.--After taking into consideration 
        any comments of the recipient under paragraph (1), the 
        Secretary--
                    ``(A) may revise the report; and
                    ``(B) not later than 30 days after the date on 
                which those comments are received, shall make the 
                comments and the report (with any revisions made under 
                subparagraph (A)) readily available to the public.
    ``(d) Effect of Reviews.--Subject to section 401(a), after 
reviewing the reports and audits relating to a recipient that are 
submitted to the Secretary under this section, the Secretary may adjust 
the amount of a grant made to a recipient under this Act in accordance 
with the findings of the Secretary with respect to those reports and 
audits.''.

SEC. 7. ALLOCATION FORMULA.

    Section 302(d)(1) of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4152(d)(1)) is amended--
            (1) by striking ``The formula,'' and inserting the 
        following:
                    ``(A) In general.--Except with respect to an Indian 
                tribe described in subparagraph (B), the formula''; and
            (2) by adding at the end the following:
                    ``(B) Certain indian tribes.--With respect to 
                fiscal year 1998 and each fiscal year thereafter, with 
                respect to any Indian tribe having an Indian housing 
                authority that owns or operates fewer than 250 public 
                housing units, the formula under subparagraph (A) shall 
                provide that the amount provided for a fiscal year in 
                which the total amount made available for assistance 
                under this Act is equal to or greater than the amount 
                made available for fiscal year 1996 for assistance for 
                the operation and modernization of the public housing 
                referred to in subparagraph (A), the amount provided to 
                that Indian tribe as modernization assistance shall be 
                equal to the average annual amount of funds provided to 
                the Indian tribe (other than funds provided as 
                emergency assistance) under the assistance program 
                under section 14 of the United States Housing Act of 
                1937 (42 U.S.C. 1437l) for the period beginning with 
                fiscal year 1992 and ending with fiscal year 1997.''.

SEC. 8. HEARING REQUIREMENT.

    Section 401(a) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4161(a)) is amended--
            (1) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and indenting each 
        such subparagraph 2 ems to the right;
            (2) by striking ``Except as provided'' and inserting the 
        following:
            ``(1) In general.--Except as provided'';
            (3) by striking ``If the Secretary takes an action under 
        paragraph (1), (2), or (3)'' and inserting the following:
            ``(2) Continuance of actions.--If the Secretary takes an 
        action under subparagraph (A), (B), or (C) of paragraph (1)''; 
        and
            (4) by adding at the end the following:
            ``(3) Exception for certain actions.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection, if the Secretary makes a 
                determination that the failure of a recipient of 
                assistance under this Act to comply substantially with 
                any material provision (as that term is defined by the 
                Secretary) of this Act is resulting, and would continue 
                to result, in a continuing expenditure of Federal funds 
                in a manner that is not authorized by law, the 
                Secretary may take an action described in paragraph 
                (1)(C) before conducting a hearing.
                    ``(B) Procedural requirement.--If the Secretary 
                takes an action described in subparagraph (A), the 
                Secretary shall--
                            ``(i) provide notice to the recipient at 
                        the time that the Secretary takes that action; 
                        and
                            ``(ii) conduct a hearing not later than 60 
                        days after the date on which the Secretary 
                        provides notice under clause (i).
                    ``(C) Determination.--Upon completion of a hearing 
                under this paragraph, the Secretary shall make a 
                determination regarding whether to continue taking the 
                action that is the subject of the hearing, or take 
                another action under this subsection.''.

SEC. 9. PERFORMANCE AGREEMENT TIME LIMIT.

    Section 401(b) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4161(b)) is amended--
            (1) by striking ``If the Secretary'' and inserting the 
        following:
            ``(1) In general.--If the Secretary'';
            (2) by striking ``(1) is not'' and inserting the following:
                    ``(A) is not'';
            (3) by striking ``(2) is a result'' and inserting the 
        following:
                    ``(B) is a result:
            (4) in the flush material following paragraph (1)(B), as 
        redesignated by paragraph (3) of this section--
                    (A) by adjusting the margin 2 ems to the right; and
                    (B) by inserting before the period at the end the 
                following: ``, if the recipient enters into a 
                performance agreement with the Secretary that specifies 
                the compliance objectives that the recipient will be 
                required to achieve by the termination date of the 
                performance agreement''; and
            (5) by adding at the end the following:
            ``(2) Performance agreement.--The period of a performance 
        agreement described in paragraph (1) shall be for 1 year.
            ``(3) Review.--Upon the termination of a performance 
        agreement entered into under paragraph (1), the Secretary shall 
        review the performance of the recipient that is a party to the 
        agreement.
            ``(4) Effect of review.--If, on the basis of a review under 
        paragraph (3), the Secretary determines that the recipient--
                    ``(A) has made a good faith effort to meet the 
                compliance objectives specified in the agreement, the 
                Secretary may enter into an additional performance 
                agreement for the period specified in paragraph (2); 
                and
                    ``(B) has failed to make a good faith effort to 
                meet applicable compliance objectives, the Secretary 
                shall determine the recipient to have failed to comply 
                substantially with this Act, and the recipient shall be 
                subject to an action under subsection (a).''.

SEC. 10. BLOCK GRANTS AND GUARANTEES NOT FEDERAL SUBSIDIES FOR LOW-
              INCOME HOUSING CREDIT.

    (a) In General.--Subparagraph (E) of section 42(i)(2) of the 
Internal Revenue Code of 1986 (relating to determination of whether 
building is federally subsidized) is amended to read as follows:
                    ``(E) Buildings receiving home assistance or native 
                american housing assistance.--
                            ``(i) In general.--
                                    ``(I) Inapplicability.--Assistance 
                                provided under the HOME Investment 
                                Partnerships Act or the Native American 
                                Housing Assistance and Self-
                                Determination Act of 1996 as in effect 
                                on the day before the date of enactment 
                                of the Native American Housing 
                                Assistance and Self-Determination Act 
                                Amendments of 1997 with respect to any 
                                building shall not be taken into 
                                account under subparagraph (D) if 40 
                                percent or more of the residential 
                                units in the building are occupied by 
                                individuals whose income is 50 percent 
                                or less of the area median gross 
                                income.
                                    ``(II) Applicability of other 
                                law.--Subsection (d)(5)(C) does not 
                                apply to any building to which 
                                subclause (I) applies.
                            ``(ii) Special rule for certain high-cost 
                        housing areas.--In the case of a building 
                        located in a city described in section 
                        142(d)(6), clause (i) shall be applied by 
                        substituting `25 percent' for `40 percent'.''.
    (b) Applicability.--The amendment made by this section shall apply 
to determinations made under section 42(i)(2) of the Internal Revenue 
Code after the date of enactment of this Act.

SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Table of Contents.--Section 1(b) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 note) is 
amended in the table of contents--
            (1) by striking the item relating to section 206; and
            (2) by striking the item relating to section 209 and 
        inserting the following:

``209. Noncompliance with affordable housing requirement.''.
    (b) Authorization of Appropriations.--Section 108 of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4117) is amended to read as follows:

``SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for each of fiscal years 
1998 through 2001--
            ``(1) to provide assistance under this title for 
        emergencies and disasters, as determined by the Secretary, 
        $10,000,000; and
            ``(2) such sums as may be necessary to otherwise provide 
        grants under this title.''.
    (c) Certification of Compliance With Subsidy Layering 
Requirements.--Section 206 of the Native American Housing Assistance 
and Self-Determination Act of 1996 (25 U.S.C. 4136) is repealed.
    (d) Terminations.--Section 502(a) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4181(a)) is 
amended by adding at the end the following: ``Any housing that is the 
subject of a contract for tenant-based assistance between the Secretary 
and an Indian housing authority that is terminated under this section 
shall, for the following fiscal year and each fiscal year thereafter be 
considered to be a dwelling unit under section 302(b)(1).''.