To authorize the Secretary of Housing and Urban Development to make grants to assist States, tribal governments, and Native Hawaiian organizations in their efforts to develop or update land use planning legislation in order to promote more environmentally compatible and effective urban development, improved quality of life, regionalism, sustainable economic development, and environmental stewardship, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Character Act of 2001''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Inadequate land use planning at the State level 
        contributes to increased public and private capital costs for 
        infrastructure development, loss of community character, and 
        environmental degradation.
            (2) Although land use planning is rightfully within the 
        jurisdiction of State and local governments, comprehensive land 
        use planning and urban development should be supported by the 
        Federal Government and State governments.
            (3) States should provide a proper climate and context for 
        planning through legislation in order for appropriate 
        comprehensive land use planning and urban development to occur.
            (4) Many States have outdated land use planning 
        legislation, and many States are undertaking efforts to update 
        and reform the legislation.
            (5) Efforts to coordinate State and regional investments 
        with local plans require additional planning at the State 
        level.
            (6) Housing is a critical component of sustainable urban 
        development, and land use planning should provide for a range 
        of housing options to offer choice in location, type, and 
        affordability to all members of the community.
            (7) The Federal Government and State governments should 
        support the efforts of tribal governments and Native Hawaiian 
        organizations to implement land use planning and community 
        development to improve housing and socioeconomic conditions for 
        Indian tribes and Native Hawaiians.

SEC. 3. HOUSING AND URBAN DEVELOPMENT GRANTS TO STATES TO DEVELOP OR 
              UPDATE LAND USE PLANNING LEGISLATION.

    (a) Grant Program Authorized.--The Secretary of Housing and Urban 
Development shall establish a program to provide grants to States for 
the purpose of assisting in--
            (1) as a first priority, the development or revision of 
        land use planning legislation in those States that have 
        inadequate or outmoded land use planning legislation;
            (2) the creation or revision of State comprehensive land 
        use plans or plan elements in those States that have previously 
        updated land use planning legislation; and
            (3) the development or revision of comprehensive land use 
        plans or plan elements for multi-State regions.
    (b) Eligibility.--To be eligible to receive a grant under 
subsection (a), a State planning director shall submit to the Secretary 
an application, in such form as the Secretary may require, that 
demonstrates to the Secretary that the basic goals of the State 
regarding land use planning legislation are consistent with all of the 
following guidelines:
            (1) Citizen representation.--Citizens are notified and 
        citizen representation is required in the developing, adopting, 
        and updating of land use plans.
            (2) Multijurisdictional cooperation.--In order to 
        effectively manage the impacts of urban development and to 
        provide for resource sustainability, land use plans are created 
        based on multi-jurisdictional governmental cooperation, when 
        practicable, particularly in the case of land use plans based 
        on watershed boundaries.
            (3) Implementation elements.--Land use plans contain an 
        implementation element that--
                    (A) includes a timetable for action and a 
                definition of the respective roles and responsibilities 
                of agencies, local governments, and citizens of the 
                State;
                    (B) is consistent with State capital budget 
                objectives; and
                    (C) provides the framework for decisions relating 
                to the siting of future infrastructure development, 
                including development of utilities and utility 
                distribution systems.
            (4) Comprehensive planning.--There is comprehensive 
        planning to encourage land use plans that--
                    (A) promote sustainable economic development and 
                social equity;
                    (B) enhance community character;
                    (C) coordinate transportation, housing, education, 
                and other infrastructure development;
                    (D) conserve historic resources, scenic resources, 
                and the environment;
                    (E) sustainably manage natural resources; and
                    (F) provide for a range of housing options, 
                including provisions that promote and accommodate 
                housing affordability.
            (5) Updating.--Land use plans are routinely updated.
            (6) Standards.--Land use plans reflect an approach that is 
        consistent with established professional planning standards.
    (c) Use of Grant Funds.--Grant funds received by a State under 
subsection (a) shall be used to obtain technical assistance in--
            (1) drafting land use planning legislation;
            (2) research and development for land use planning programs 
        and requirements relating to the development of State guide 
        plans;
            (3) conducting workshops, educating and consulting policy 
        makers, and involving citizens in the planning process; and
            (4) integrating State and regional concerns and land use 
        plans with Federal land use plans.
    (d) Amount of Grant.--The amount of a grant under subsection (a) 
shall not exceed $1,000,000.
    (e) Cost-Sharing.--
            (1) In general.--Except as provided in paragraph (2), the 
        Federal share of a project funded with a grant under subsection 
        (a) shall not exceed 90 percent.
            (2) Increased federal share.--The Secretary may increase 
        the Federal share in the case of a grant to a tribal government 
        or Native Hawaiian organization if the Secretary finds that the 
        tribal government or Native Hawaiian organization does not have 
        sufficient funds to contribute to the project.
    (f) Coordination.--The Secretary shall encourage Federal land 
management agencies to coordinate land use planning for Federal land 
with the State planning director responsible for the drafting and 
updating of State guide plans or guidance documents regulating land use 
and infrastructure development on a statewide basis.
    (g) Audits.--
            (1) In general.--The Inspector General of the Department of 
        Housing and Urban Development shall conduct an audit of a 
        portion of the grants provided under this section to ensure 
        that all funds provided under the grants are used for the 
        purposes specified in this section.
            (2) Use of audit results.--The results of audits conducted 
        under paragraph (1) and any recommendations made in connection 
        with the audits shall be taken into consideration in awarding 
        any future grant under this section to a State.
    (h) Definitions.--In this section:
            (1) Land use planning legislation.--The term ``land use 
        planning legislation'' means a statute, regulation, executive 
        order or other action taken by a State to guide, regulate, and 
        assist in the planning, regulation, and management of land, 
        natural resources, development practices, and other activities 
        related to the pattern and scope of future land use.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (3) State.--The term ``State'' means any of the following:
                    (A) One of the several States, the District of 
                Columbia, the Commonwealth of Puerto Rico, the Virgin 
                Islands, Guam, American Samoa, or the Commonwealth of 
                the Northern Mariana Islands.
                    (B) A tribal government.
                    (C) A Native Hawaiian organization, as defined in 
                section 8(a)(15) of the Small Business Act (15 U.S.C. 
                637(a)(15)).
            (4) State planning director.--The term ``State planning 
        director'' means the State official designated by statute or by 
        the chief executive officer of the State whose principal 
        responsibility is the drafting and updating of State guide 
        plans or guidance documents that regulate land use and urban 
        development on a statewide basis.
            (5) Tribal government.--The term ``tribal government'' 
        means the tribal government of an Indian tribe, as defined in 
        section 4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b).
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of the 
fiscal years 2002 through 2006.

Summary: Community Character Act of 2001 - Directs the Secretary of Housing and Urban Development to establish a program to provide grants to States to assist in the development or revision of land use planning legislation and the creation or revision of State and multi-State comprehensive land use plans or plan elements. Requires grant funds to be used to obtain technical assistance in: (1) drafting such legislation. (2) research and development for land use planning programs and requirements relating to the development of State guide plans. (3) conducting workshops, educating and consulting policy makers, and involving citizens in the planning process. And (4) integrating State and regional concerns and land use plans with such Federal plans. Authorizes increased Federal cost sharing for projects with tribal governments or Native Hawaiian organizations.