A bill to amend the Native American Housing Assistance and Self-Determination Act of 1996 and other Acts to improve housing programs for Indians.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Native American Housing Enhancement 
Act of 2003''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) there exist--
                    (A) a unique relationship between the Government of 
                the United States and the governments of Indian tribes; 
                and
                    (B) a unique Federal trust responsibility to Indian 
                people;
            (2) Native Americans experience some of the worst housing 
        conditions in the country, with--
                    (A) 32.6 percent of Native homes being overcrowded;
                    (B) 33 percent lacking adequate solid waste 
                management systems;
                    (C) 8 percent lacking a safe indoor water supply; 
                and
                    (D) approximately 90,000 Native families who are 
                homeless or underhoused;
            (3) the poverty rate for Native Americans is twice that of 
        the rest of the population of the United States;
            (4) the population growth of Native Americans that began in 
        the latter part of the 20th century increased the need for 
        Federal housing services;
            (5) the Native American Housing Assistance and Self-
        Determination Act of 1996 (25 U.S.C. 4101 et seq.) provides 
        Indian tribes the ability to determine the amount of rental and 
        homebuyer payments;
            (6) to fully recognize tribal self-determination, that Act 
        should be amended to eliminate the mandatory rental and payment 
        ceiling of 30 percent of adjusted income for the low-income 
        participants and replace the ceiling with a fair market rent 
        ceiling as a workable and simple method to ensure that 
        participants in the assisted program under the Act do not pay 
        more for housing than the fair market rate;
            (7) elimination of the 30-percent ceiling requirement 
        will--
                    (A) discontinue the complex and unnecessary income 
                disclosure, income verification, and deduction 
                calculation procedures currently engaged in by Indian 
                tribes and tribally designated housing authorities; and
                    (B) release tribal resources that may be used more 
                productively for addressing the urgent housing need in 
                Indian country;
            (8)(A) the Act allows little or no opportunity for Indian 
        tribes and tribally designated housing authorities to establish 
        a reasonable amount of reserves for efficient operation of 
        housing programs or projects and proper maintenance of housing 
        units; and
            (B) the Act should be amended to allow Indian tribes and 
        tribally designated housing authorities the opportunity to 
        establish, manage, and administer a reasonable reserve account 
        to ensure the professional operation of the necessary housing 
        programs;
            (9)(A) under the requirements of the Act, members of Indian 
        tribes are given preference for housing programs;
            (B) a primary purpose of the Act is to allow Indian tribes 
        to leverage funds with other Federal and private funds;
            (C) the Department of Agriculture has been a significant 
        funding source for funding housing for Indian tribes; and
            (D) to allow assistance provided under the Act and 
        assistance provided by the Secretary of Agriculture under other 
        law to be combined to meet the severe housing needs of Indian 
        tribes, the Housing Act of 1949 (42 U.S.C. 1471 et seq.) should 
        be amended to clearly state that the preference referred to in 
        subparagraph (A) does not violate the Civil Rights Act of 1964 
        (42 U.S.C. 2000d); and
            (10) the Cranston-Gonzales National Affordable Housing Act 
        (42 U.S.C. 12899f(2)) should be amended to include Indian 
        tribes, tribally designated housing entities, or other agencies 
        that primarily serve Indians as eligible applicants for 
        Youthbuild grants.

SEC. 3. FAIR MARKET RENT.

    (a) Definition of Fair Market Rent.--Section 4 of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4103) is amended--
            (1) by redesignating paragraphs (6) through (22) as 
        paragraphs (7) through (23), respectively; and
            (2) by inserting after paragraph (5) the following:
            ``(6) Fair market rent.--The term `fair market rent', with 
        respect to a dwelling unit, means a fair market rent, 
        determined by the Secretary not less than annually, for 
        existing or newly constructed dwelling units of a size and type 
        similar to, and located in the same market area as, the 
        dwelling unit.''.
    (b) Program Requirements.--Section 203 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4133) 
is amended by striking subsection (a) and inserting the following:
    ``(a) Rents and Housing Payments.--
            ``(1) Policies.--Each recipient shall develop written 
        policies governing rents and homebuyer payments charged for 
        dwelling units assisted under this Act, including the method by 
        which the rents and homebuyer payments are determined.
            ``(2) Maximum rental unit rent.--In the case of a low-
        income family residing in a rental dwelling unit assisted with 
        grant amounts under this Act, the monthly rent for the dwelling 
        unit shall not exceed the fair market rent.
            ``(3) Maximum lease purchase homebuyer payment.--In the 
        case of a low-income family residing in a lease purchase 
        dwelling unit assisted with grant amounts under this Act, the 
        monthly homebuyer payment for the dwelling unit shall not 
        exceed, at the election of the recipient--
                    ``(A) 30 percent of the monthly adjusted income of 
                the low-income family; or
                    ``(B) the fair market rent.
            ``(4) No required recertification.--The Secretary shall not 
        require mandatory re-certification of the incomes of families 
        residing in rental or lease purchase dwelling units assisted 
        with grant amounts under this Act.''.

SEC. 4. RESERVE ACCOUNTS.

    Section 203(b) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4133(b)) is amended--
            (1) in the first sentence--
                    (A) by striking ``Each recipient'' and inserting 
                the following:
            ``(1) In general.--Each recipient''; and
                    (B) by striking ``reserve'' and all that follows 
                and inserting the following: ``maintain such amounts of 
                reserves as are necessary to ensure the payment of--
                    ``(A) principal and interest as it becomes due on 
                any bonds or other obligations relating to the housing; 
                and
                    ``(B) the costs of maintaining and operating the 
                housing (including the costs of insurance and 
                administrative expenses).''; and
            (2) in the second sentence, by striking ``This subsection'' 
        and inserting the following:
            ``(2) Effect of subsection.--This subsection''.

SEC. 5. TREATMENT OF PROGRAM INCOME.

    Section 104(a)(2) of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4114(a)(2)) is amended by 
inserting ``restrict access to or'' after ``not''.

SEC. 6. CIVIL RIGHTS COMPLIANCE.

    Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is 
amended by adding at the end the following:

``SEC. 543. INDIAN TRIBES.

    ``The giving of a preference to members of an Indian tribe for the 
use of any dwelling or other building constructed, improved, altered, 
repaired, replaced, or otherwise aided with assistance provided under 
this title to the Indian tribe shall not constitute a violation of 
section 601 of the Civil Rights Act of 1964 (42 U.S.C. 2000d).''.

SEC. 7. ELIGIBILITY OF INDIAN TRIBES FOR YOUTHBUILD GRANTS.

    Section 457(2) of the Cranston-Gonzales National Affordable Housing 
Act (42 U.S.C. 12899f(2)) is amended--
            (1) in subparagraph (F), by striking ``and'' at the end;
            (2) by redesignating subparagraph (G) as subparagraph (H); 
        and
            (3) by inserting after subparagraph (F) the following:
                    ``(G) an Indian tribe, tribally designated housing 
                entity (as defined in section 4 of the Native American 
                Housing Assistance and Self-Determination Act (25 
                U.S.C. 4103)), or other agency primarily serving 
                Indians; and''.

Summary: Native American Housing Enhancement Act of 2003 - Amends the Native American Housing Assistance and Self-Determination Act of 1996 to define, with respect to a dwelling unit, fair market rent as one, determined at least annually by the Secretary of the Interior, for existing or newly constructed dwelling units of a size and type similar to, and located in the same market area as, the dwelling unit. Modifies program requirements concerning rents and housing payments. Provides that, in the case of a low-income family residing in a rental dwelling unit assisted with grant amounts under this Act, the monthly rent for the dwelling unit shall not exceed the fair market rent. States that, if such a family resides in a lease purchase dwelling unit assisted with such grant amounts, the monthly homebuyer payment shall not exceed, at the recipient's election, either 30 percent of the monthly adjusted family income, or the fair market rent. Prohibits the Secretary from requiring mandatory recertification of the incomes of families residing in rental or lease purchase dwelling units assisted with such grant amounts. Requires grant recipients to reserve amounts out of such grants to ensure payment of: (1) principal and interest as it becomes due on any bonds or other obligations relating to the housing. And (2) the costs of insurance and administrative expenses for such housing. Prohibits the Secretary from restricting access to, as well as reducing, a grant amount for any Indian tribe based solely on certain conditions relating to retention of grant income. Amends the Housing Act of 1949 to declare that the giving of a preference to members of an Indian tribe for the use of any dwelling or other building constructed, improved, altered, repaired, replaced, or otherwise aided with assistance provided under such Act to the Indian tribe shall not constitute a violation of the Civil Rights Act of 1964. Amends the Cranston-Gonzales National Affordable Housing Act to make Indian tribes, tribally designated housing entities, or other agencies primarily serving Indians eligible for Youthbuild grants.