I

104TH CONGRESS

2D SESSION H. R. 3219

To provide Federal assistance for Indian tribes in a manner that recognizes

the right of tribal self-governance, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 29, 1996

Mr. LAZIO of New York (for himself, Mr. BEREUTER, Mr. HAYWORTH, and

Mr. JOHNSON of South Dakota) introduced the following bill; which was

referred to the Committee on Banking and Financial Services

A BILL

To provide Federal assistance for Indian tribes in a manner

that recognizes the right of tribal self-governance, and

for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Native American Housing Assistance and Self-Deter6 mination Act of 1996’’.

7 (b) TABLE OF CONTENTS.—The table of contents for

8 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Congressional findings.
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Sec. 3. Administration through Office of Native American Programs.

Sec. 4. Definitions.

TITLE I—BLOCK GRANTS AND GRANT REQUIREMENTS

Sec. 101. Block grants.

Sec. 102. Local housing management plans.

Sec. 103. Review of plans.

Sec. 104. Treatment of program income and labor standards.

Sec. 105. Environmental review.

Sec. 106. Regulations.

Sec. 107. Effective date.

Sec. 108. Authorization of appropriations.

TITLE II—AFFORDABLE HOUSING ACTIVITIES

Sec. 201. National objectives and occupancy by Indian families.

Sec. 202. Eligible affordable housing activities.

Sec. 203. Required affordable housing activities.

Sec. 204. Types of investments.

Sec. 205. Low-income requirement and income targeting.

Sec. 206. Certification of compliance with subsidy layering requirements.

Sec. 207. Lease requirements and tenant selection.

Sec. 208. Repayment.

TITLE III—ALLOCATION OF GRANT AMOUNTS

Sec. 301. Annual allocation.

Sec. 302. Allocation formula.

TITLE IV—COMPLIANCE, AUDITS, AND REPORTS

Sec. 401. Remedies for noncompliance.

Sec. 402. Replacement of recipient.

Sec. 403. Monitoring of compliance.

Sec. 404. Performance reports.

Sec. 405. Review and audit by Secretary.

Sec. 406. GAO audits.

Sec. 407. Reports to Congress.

TITLE V—TERMINATION OF ASSISTANCE FOR INDIAN TRIBES

UNDER INCORPORATED PROGRAMS

Sec. 501. Termination of Indian public housing assistance under United States

Housing Act of 1937.

Sec. 502. Termination of new commitments for rental assistance.

Sec. 503. Termination of youthbuild program assistance.

Sec. 504. Termination of HOME program assistance.

Sec. 505. Termination of housing assistance for the homeless.

Sec. 506. Savings provision.

Sec. 507. Effective date.

TITLE VI—LOAN GUARANTEES FOR AFFORDABLE HOUSING

ACTIVITIES

Sec. 601. Authority and requirements.

Sec. 602. Security and repayment.

Sec. 603. Interest.
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Sec. 604. Treasury borrowing.

Sec. 605. Training and information.

Sec. 606. Limitations on amount of guarantees.

Sec. 607. Effective date.

TITLE VII—OTHER HOUSING ASSISTANCE FOR NATIVE

AMERICANS

Sec. 701. Loan guarantees for Indian housing.

Sec. 702. 40-year leasehold interest in trust or restricted lands for housing purposes.

Sec. 703. National American Indian Housing Council.

Sec. 704. Effective date.

1 SEC. 2. CONGRESSIONAL FINDINGS.

2 The Congress hereby finds that—

3 (1) the Federal Government has a responsibility

4 to promote the general welfare of the Nation—

5 (A) by using Federal resources to aid fami6 lies and individuals seeking affordable homes

7 that are safe, clean, and healthy and, in par8 ticular, assisting responsible, deserving citizens

9 who cannot provide fully for themselves because

10 of temporary circumstances or factors beyond

11 their control;

12 (B) by working to ensure a thriving na13 tional economy and a strong private housing

14 market; and

15 (C) by developing effective partnerships

16 among the Federal Government, State and local

17 governments, and private entities that allow

18 government to accept responsibility for foster19 ing the development of a healthy marketplace
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1 and allow families to prosper without govern2 ment involvement in their day-to-day activities;

3 (2) there exists a unique relationship between

4 the Government of the United States and the gov5 ernments of Indian tribes and a unique Federal re6 sponsibility to Indian people;

7 (3) clause 3 of section 8 of article I of the Con8 stitution of the United States provides that ‘‘The

9 Congress shall have Power . . . To regulate Com10 merce . . . with the Indian tribes’’ and pursuant to

11 this and other constitutional authority, the Congress

12 has plenary power over Indian affairs;

13 (4) the Congress, through treaties, statutes,

14 and the general course of dealing with Indian tribes,

15 has assumed the responsibility for the protection and

16 preservation of Indian tribes and for working with

17 tribes and their members to improve their socio-eco18 nomic status so that they are able to take greater

19 responsibility for their own economic condition;

20 (5) providing affordable and healthy homes is

21 an essential element in the Federal Government’s

22 role in helping tribes and their members to achieve

23 a socio-economic status comparable to their non-In24 dian neighbors;
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1 (6) the need for affordable and healthy homes

2 on Indian reservations, in Indian communities, and

3 in Native Alaskan villages is acute and the Federal

4 Government should work not only to provide housing

5 assistance, but also, to the extent practicable, to as6 sist in the development of private housing finance

7 mechanisms on Indian lands to achieve the goals of

8 economic self-sufficiency and self-determination for

9 tribes and their members; and

10 (7) Federal assistance to meet these respon11 sibilities should be provided in a manner that recog12 nizes the right of tribal self-governance by making

13 such assistance available directly to the tribes or

14 tribally designated entities.

15 SEC. 3. ADMINISTRATION THROUGH OFFICE OF NATIVE

16 AMERICAN PROGRAMS.

17 The Secretary of Housing and Urban Development

18 shall carry out this Act through the Office of Native Amer19 ican Programs of the Department of Housing and Urban

20 Development.

21 SEC. 4. DEFINITIONS.

22 For purposes of this Act, the following definitions

23 shall apply:

24 (1) AFFORDABLE HOUSING.—The term ‘‘afford25 able housing’’ means housing that complies with the
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1 requirements for affordable housing under title II.

2 The term includes permanent housing for homeless

3 persons who are persons with disabilities, transi4 tional housing, and single room occupancy housing.

5 (2) FAMILIES AND PERSONS.—

6 (A) SINGLE PERSONS.—The term ‘‘fami7 lies’’ includes families consisting of a single per8 son in the case of (i) an elderly person, (ii) a

9 disabled person, (iii) a displaced person, (iv) the

10 remaining member of a tenant family, and (v)

11 any other single persons.

12 (B) FAMILIES.—The term ‘‘families’’ in13 cludes families with children and, in the cases

14 of elderly families, near-elderly families, and

15 disabled families, means families whose heads

16 (or their spouses), or whose sole members, are

17 elderly, near-elderly, or persons with disabilities,

18 respectively. The term includes, in the cases of

19 elderly families, near-elderly families, and dis20 abled families, 2 or more elderly persons, near21 elderly persons, or persons with disabilities liv22 ing together, and 1 or more such persons living

23 with 1 or more persons determined under the

24 regulations of the Secretary to be essential to

25 their care or well-being.
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1 (C) ABSENCE OF CHILDREN.—The tem2 porary absence of a child from the home due to

3 placement in foster care shall not be considered

4 in determining family composition and family

5 size for purposes of this Act.

6 (D) ELDERLY PERSON.—The term ‘‘elder7 ly person’’ means a person who is at least 62

8 years of age.

9 (E) PERSON WITH DISABILITIES.—The

10 term ‘‘person with disabilities’’ means a person

11 who—

12 (i) has a disability as defined in sec13 tion 223 of the Social Security Act,

14 (ii) is determined, pursuant to regula15 tions issued by the Secretary, to have a

16 physical, mental, or emotional impairment

17 which (I) is expected to be of long-contin18 ued and indefinite duration, (II) substan19 tially impedes his or her ability to live

20 independently, and (III) is of such a na21 ture that such ability could be improved by

22 more suitable housing conditions, or

23 (iii) has a developmental disability as

24 defined in section 102 of the Developmen-
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1 tal Disabilities Assistance and Bill of

2 Rights Act.

3 Such term shall not exclude persons who have

4 the disease of acquired immunodeficiency syn5 drome or any conditions arising from the etio6 logic agent for acquired immunodeficiency syn7 drome.

8 (F) DISPLACED PERSON.—The term ‘‘dis9 placed person’’ means a person displaced by

10 governmental action, or a person whose dwell11 ing has been extensively damaged or destroyed

12 as a result of a disaster declared or otherwise

13 formally recognized pursuant to Federal disas14 ter relief laws.

15 (G) NEAR-ELDERLY PERSON.—The term

16 ‘‘near-elderly person’’ means a person who is at

17 least 50 years of age but below the age of 62.

18 (3) GRANT BENEFICIARY.—The term ‘‘grant

19 beneficiary’’ means the Indian tribe or tribes on be20 half of which a grant is made under this Act to a

21 recipient.

22 (4) INDIAN.—The term ‘‘Indian’’ means any

23 person who is a member of an Indian tribe.

24 (5) INDIAN AREA.—The term ‘‘Indian area’’

25 means the area within which a tribally designated
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1 housing entity is authorized to provide assistance

2 under this Act for affordable housing.

3 (6) INDIAN TRIBE.—The term ‘‘Indian tribe’’

4 means—

5 (A) any Indian or Alaska Native tribe,

6 band, nation, pueblo, village, or community that

7 the Secretary of the Interior acknowledges to

8 exist as an Indian tribe pursuant to the Feder9 ally Recognized Indian Tribe List Act of 1994;

10 and

11 (B) any tribe, band, nation, pueblo, village,

12 or community that—

13 (i) has been recognized as an Indian

14 tribe by any State; and

15 (ii) for which an Indian housing au16 thority is eligible, on the date of the enact17 ment of this Act, to enter into a contract

18 with the Secretary pursuant to the United

19 States Housing Act of 1937.

20 (7) LOCAL HOUSING MANAGEMENT PLAN.—The

21 term ‘‘local housing management plan’’ means a

22 plan under section 102.

23 (8) LOW-INCOME FAMILY.—The term ‘‘low-in24 come family’’ means a family whose income does not

25 exceed 80 percent of the median income for the
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1 area, except that the Secretary may, for purposes of

2 this paragraph, establish income ceilings higher or

3 lower than 80 percent of the median for the area on

4 the basis of the authority’s findings that such vari5 ations are necessary because of unusually high or

6 low family incomes.

7 (9) MEDIAN INCOME.—The term ‘‘median in8 come’’ means, with respect to an area, the greater

9 of—

10 (A) the median income for such area; or

11 (B) the median income for the United

12 States.

13 (10) RECIPIENT.—The term ‘‘recipient’’ means

14 the entity for an Indian tribe that is authorized to

15 receive grant amounts under this Act on behalf of

16 the tribe, which may only be the tribe or the tribally

17 designated housing entity for the tribe.

18 (11) TRIBALLY DESIGNATED HOUSING EN19 TITY.—The terms ‘‘tribally designated housing en20 tity’’ and ‘‘housing entity’’ mean—

21 (A) an entity other than the tribal govern22 ment that—

23 (i) is authorized to receive grant

24 amounts and provide assistance under this

25 Act for affordable housing for Indians; and
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1 (ii) is established—

2 (I) by exercise of the power of

3 self-government of an Indian tribe

4 independent of State law; or

5 (II) by operation of State law

6 providing specifically for housing au7 thorities or housing entities for Indi8 ans, including regional housing au9 thorities in the State of Alaska; and

10 (B) any Indian housing authority that—

11 (i) was established for purposes of the

12 United States Housing Act of 1937 before

13 the date of the enactment of this Act and

14 meets the requirements under the United

15 States Housing Act of 1937; and

16 (ii) is not an Indian tribe for purposes

17 of this Act.

18 A tribally designated housing entity may be author19 ized or established by one or more Indian tribes to

20 act on behalf of each such tribe authorizing or estab21 lishing the housing entity. Nothing in this Act may

22 be construed to affect the existence, or the ability to

23 operate, of any Indian housing authority established

24 before the date of the enactment of this Act by a

25 State-recognized tribe, band, nation, pueblo, village,
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1 or community of Indian or Alaska Natives that is

2 not an Indian tribe for purposes of this Act.

3 (12) SECRETARY.—The term ‘‘Secretary’’

4 means the Secretary of Housing and Urban Develop5 ment, except as otherwise specified in this Act.

6 TITLE I—BLOCK GRANTS AND

7 GRANT REQUIREMENTS

8 SEC. 101. BLOCK GRANTS.

9 (a) AUTHORITY.—For each fiscal year, the Secretary

10 shall (to the extent amounts are made available to carry

11 out this Act) make grants under this section on behalf

12 of Indian tribes to carry out affordable housing activities.

13 Under such a grant on behalf of an Indian tribe, the Sec14 retary shall provide the grant amounts for the tribe di15 rectly to the recipient for the tribe.

16 (b) CONDITION OF GRANT.—The Secretary may

17 make a grant under this Act on behalf of an Indian tribe

18 for a fiscal year only if—

19 (1) the Indian tribe has submitted to the Sec20 retary a local housing management plan for such fis21 cal year under section 102; and

22 (2) the plan has been determined under section

23 103 to comply with the requirements of section 102.
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1 (c) AMOUNT.—Except as otherwise provided under

2 title II, the amount of a grant under this section to a re3 cipient for a fiscal year shall be—

4 (1) in the case of a recipient whose grant bene5 ficiary is a single Indian tribe, the amount of the al6 location under section 301 for the Indian tribe; and

7 (2) in the case of a recipient whose grant bene8 ficiary is more than 1 Indian tribe, the sum of the

9 amounts of the allocations under section 301 for

10 each such Indian tribe.

11 (d) USE FOR AFFORDABLE HOUSING ACTIVITIES.—

12 Except as provided in subsection (f), amounts provided

13 under a grant under this section may be used only for

14 affordable housing activities under title II.

15 (e) EFFECTUATION OF LHMP.—Except as provided

16 in subsection (f), amounts provided under a grant under

17 this section may be used only for affordable housing activi18 ties that are consistent with the approved local housing

19 management plan under section 103 for the grant bene20 ficiary on whose behalf the grant is made.

21 (f) ADMINISTRATIVE EXPENSES.—

22 (1) IN GENERAL.—The Secretary shall, by reg23 ulation, authorize each recipient to use a percentage

24 of any grant amounts received under this Act for

25 any administrative and planning expenses of the re-
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1 cipient relating to carrying out this Act and activi2 ties assisted with such amounts, which may include

3 costs for salaries of individuals engaged in admin4 istering and managing affordable housing activities

5 assisted with grant amounts provided under this Act

6 and expenses of preparing a local housing manage7 ment plan under section 102.

8 (2) CONTENTS OF REGULATIONS.—The regula9 tions referred to in paragraph (1) shall provide

10 that—

11 (A) the Secretary shall, for each recipient,

12 establish a percentage referred to in paragraph

13 (1) based on the specific circumstances of the

14 recipient and the tribes served by the recipient;

15 and

16 (B) the Secretary may review the percent17 age for a recipient upon the written request of

18 the recipient specifying the need for such review

19 or the initiative of the Secretary and, pursuant

20 to such review, may revise the percentage estab21 lished for the recipient.

22 (3) DEVELOPMENT OF REGULATIONS UNDER

23 NEGOTIATED RULEMAKING PROCEDURE.—Notwith24 standing sections 563(a) and 565(a) of title 5, Unit25 ed States Code, the regulations required under this
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1 subsection shall be issued according to a negotiated

2 rulemaking procedure under subchapter III of chap3 ter 5 of title 5, United States Code. The Secretary

4 shall establish a negotiated rulemaking committee

5 for development of any such proposed regulations,

6 which shall include representatives of Indian tribes.

7 (g) PUBLIC-PRIVATE PARTNERSHIPS.—Each recipi8 ent shall make all reasonable efforts, consistent with the

9 purposes of this Act, to maximize participation by the pri10 vate sector, including nonprofit organizations and for11 profit entities, in implementing the approved local housing

12 management plan for the tribe that is the grant bene13 ficiary.

14 SEC. 102. LOCAL HOUSING MANAGEMENT PLANS.

15 (a) IN GENERAL.—

16 (1) SUBMISSION.—The Secretary shall provide

17 for an Indian tribe to submit to the Secretary, for

18 each fiscal year, a local housing management plan

19 under this section for the tribe (or for the tribally

20 designated housing entity for a tribe to submit the

21 plan under subsection (e) for the tribe) and for the

22 review of such plans.

23 (2) LOCALLY DRIVEN NATIONAL OBJECTIVES.—

24 A local housing management plan shall describe—
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1 (A) the mission of the tribe with respect to

2 affordable housing or, in the case of a recipient

3 that is a tribally designated housing entity, the

4 mission of the housing entity;

5 (B) the goals, objectives, and policies of

6 the recipient to meet the housing needs of low7 income families in the jurisdiction of the hous8 ing entity, which shall be designed to achieve

9 the national objectives under section 201(a);

10 and

11 (C) how the locally established mission and

12 policies of the recipient are designed to achieve,

13 and are consistent with, the national objectives

14 under section 201(a).

15 (b) CONTENTS.—A local housing management plan

16 under this section for an Indian tribe shall contain the

17 following information relating to the upcoming fiscal year

18 for which the assistance under this Act is to be made avail19 able:

20 (1) FINANCIAL RESOURCES.—An operating

21 budget for the recipient for the tribe that includes—

22 (A) identification and a description of the

23 financial resources reasonably available to the

24 recipient to carry out the purposes of this Act,

25 including an explanation of how amounts made
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1 available will leverage such additional resources

2 and identification of any tribal or publicly

3 owned land or property that may be utilized to

4 carry out the purposes of this Act; and

5 (B) the uses to which such resources will

6 be committed, including eligible and required

7 affordable housing activities under title II to be

8 assisted and administrative expenses.

9 (2) AFFORDABLE HOUSING.—For the jurisdic10 tion within which the recipient is authorized to use

11 assistance under this Act—

12 (A) a description of the estimated housing

13 needs and the need for assistance for very low14 income and moderate-income families, specify15 ing such needs for different types of tenure and

16 for different categories of residents, such as

17 low-income and moderate-income families, el18 derly persons, persons with disabilities, single

19 persons, large families, families who are partici20 pating in an organized program to achieve eco21 nomic independence and self-sufficiency, per22 sons with acquired immunodeficiency syndrome,

23 and other categories of persons that the Sec24 retary determines to be appropriate;
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1 (B) a description of the nature and extent

2 of homelessness, including an estimate of the

3 special needs of various categories of persons

4 who are homeless or threatened with homeless5 ness, and a description of the recipient’s strat6 egy for (i) helping low-income families avoid be7 coming homeless, (ii) addressing the emergency

8 shelter and transitional housing needs of home9 less persons (including a brief inventory of

10 available facilities and services that meet such

11 needs, and (iii) helping homeless persons make

12 the transition to permanent housing and inde13 pendent living;

14 (C) a description of the significant charac15 teristics of the housing market, indicating how

16 such characteristics will influence the use of

17 amounts made available under this Act for rent18 al assistance, production of new units, rehabili19 tation of old units, or acquisition of existing

20 units;

21 (D) an explanation of whether the cost of

22 housing or the incentives to develop, maintain,

23 or improve affordable housing are affected by

24 public policies (including policies of the recipi25 ent, tax policies affecting land and other prop-
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1 erty, land use controls, zoning ordinances,

2 building codes, fees and charges, growth limits,

3 and policies that affect the return on residential

4 investment) and a description of the strategy to

5 remove or ameliorate negative effects, if any, of

6 such policies;

7 (E) an explanation of the institutional

8 structure, including private industry, nonprofit

9 organizations, and public institutions, through

10 which the recipient will carry out housing ac11 tivities under the local housing management

12 plan, assessing the strengths and gaps in the

13 delivery system and describing what the recipi14 ent will do to overcome any such gaps;

15 (F) a description of how the plan will ad16 dress the housing needs identified pursuant to

17 subparagraphs (A) and (B), describing the rea18 sons for allocation priorities, and identify any

19 obstacles to addressing underserved needs;

20 (G) a description of the means of coopera21 tion and coordination between the recipient and

22 any State or units of general local government

23 in the development, submission, and implemen24 tation of their housing plans;
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1 (H) a description of the standards and

2 procedures under which the recipient will mon3 itor activities assisted under this Act and en4 sure long-term compliance with the provisions

5 of this Act;

6 (I) a certification that the recipient comply

7 with title II of the Civil Rights Act of 1968 in

8 carrying out this Act, to the extent that such

9 title is applicable;

10 (J) a statement of the number of families

11 for whom the recipient will provide affordable

12 housing using grant amounts provided under

13 this Act; and

14 (K) taking into consideration only factors

15 over which the recipient has control, a descrip16 tion of the goals, programs, and policies for re17 ducing the number of households with incomes

18 below the poverty line (as defined by the Office

19 of Management and Budget and revised annu20 ally) and, in consultation with other appropriate

21 public and private agencies, a statement of how

22 the goals, programs, and policies for producing

23 and preserving affordable housing will be co24 ordinated with other programs and services for

25 which the recipient is responsible and the extent
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1 to which they will reduce (or assist in reducing)

2 the number of households with incomes below

3 the poverty line; and

4 (3) INDIAN HOUSING DEVELOPED UNDER

5 UNITED STATES HOUSING ACT OF 1937.—A plan de6 scribing how the recipient for the tribe will comply

7 with the requirements under section 203 relating to

8 low-income housing owned or operated by the hous9 ing entity that was developed pursuant to a contract

10 between the Secretary and an Indian housing au11 thority pursuant to the United States Housing Act

12 of 1937, which shall include—

13 (A) an estimate of the market rent value

14 of any such housing owned or operated by the

15 housing entity;

16 (B) a statement of the policies of the recip17 ient governing eligibility, admissions, and occu18 pancy of families with respect to dwelling units

19 in such housing;

20 (C) a statement of the policies of the recip21 ient governing rents charged for dwelling units

22 in such housing, including—

23 (i) the methods by which such rents

24 are determined; and
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1 (ii) an analysis of how such methods

2 affect—

3 (I) the ability of the recipient to

4 provide affordable housing for low-in5 come families having a broad range of

6 incomes;

7 (II) the affordability of housing

8 for families having incomes that do

9 not exceed 30 percent of the median

10 family income for the area; and

11 (III) the availability of other fi12 nancial resources to the recipient for

13 use for such housing;

14 (D) a statement of the standards and poli15 cies of the recipient governing maintenance and

16 management of such housing, and management

17 of the recipient with respect to administration

18 of such housing, including—

19 (i) housing quality standards;

20 (ii) routine and preventative mainte21 nance policies;

22 (iii) emergency and disaster plans;

23 (iv) rent collection and security poli24 cies;
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1 (v) priorities and improvements for

2 management of the housing; and

3 (vi) priorities and improvements for

4 management of the recipient, including im5 provement of electronic information sys6 tems to facilitate managerial capacity and

7 efficiency;

8 (E) a plan describing—

9 (i) the capital improvements necessary

10 to ensure long-term physical and social via11 bility of such housing; and

12 (ii) the priorities of the recipient for

13 capital improvements of such housing

14 based on analysis of available financial re15 sources, consultation with residents, and

16 health and safety considerations;

17 (F) a description of any such housing to be

18 demolished or disposed of, a timetable for such

19 demolition or disposition, and any information

20 required under law with respect to such demoli21 tion or disposition;

22 (G) a description of any homeownership

23 programs of the recipient to be carried out with

24 respect to such housing and the requirements

25 and assistance available under such programs;
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1 (H) a description of how the recipient will

2 coordinate with tribal and State welfare agen3 cies to ensure that residents of such housing

4 will be provided with access to resources to as5 sist in obtaining employment and achieving self6 sufficiency; and

7 (I) a description of the requirements estab8 lished by the recipient that promote the safety

9 of residents of such housing, facilitate the hous10 ing entity undertaking crime prevention meas11 ures (such as community policing, where appro12 priate), allow resident input and involvement,

13 and allow for creative methods to increase resi14 dent safety by coordinating crime prevention ef15 forts between the recipient and tribal or local

16 law enforcement officials.

17 (4) INDIAN HOUSING LOAN GUARANTEES.—A

18 description of the manner in which and extent to

19 which loan guarantees under section 184 of the

20 Housing and Community Development Act of 1992

21 and title VI of this Act will be used to help in meet22 ing the needs for affordable housing in the jurisdic23 tion of the recipient for the tribe.

24 (5) DISTRIBUTION OF ASSISTANCE.—A descrip25 tion of—
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1 (A) the geographical distribution (within

2 the jurisdiction of the recipient for the tribe) of

3 the use of grant amounts and how such geo4 graphical distribution is consistent with the geo5 graphical distribution of housing need (within

6 such jurisdiction); and

7 (B) the distribution of the use of such as8 sistance for various categories of housing and

9 how use for such various categories is consist10 ent with the priorities of housing need (within

11 the jurisdiction of the recipient).

12 (c) 5-YEAR PLAN.—Each local housing management

13 plan under this section for an Indian tribe shall contain,

14 with respect to the 5-year period beginning with the fiscal

15 year for which the plan is submitted, the following infor16 mation:

17 (1) LOCALLY DRIVEN NATIONAL OBJECTIVES.—

18 The information described in subsection (a)(2).

19 (2) CAPITAL IMPROVEMENT OVERVIEW.—If the

20 recipient will provide capital improvements for hous21 ing described in subsection (b)(3) during such pe22 riod, an overview of such improvements, the ration23 ale for such improvements, and an analysis of how

24 such improvements will enable the recipient to meet

25 its goals, objectives, and mission.
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1 (d) PARTICIPATION OF TRIBALLY DESIGNATED

2 HOUSING ENTITY.—A plan under this section for an In3 dian tribe may be prepared and submitted on behalf of

4 the tribe by the tribally designated housing entity for the

5 tribe, but only if such plan contains a certification by the

6 recognized tribal government of the grant beneficiary that

7 such tribe has had an opportunity to review the plan and

8 has authorized the submission of the plan by the housing

9 entity.

10 (e) COORDINATION OF PLANS.—A plan under this

11 section may cover more than 1 Indian tribe, but only if

12 the certification requirements under subsection (d) are

13 complied with by each such grant beneficiary covered.

14 (f) PLANS FOR SMALL TRIBES.—

15 (1) SEPARATE REQUIREMENTS.—The Secretary

16 shall establish requirements for submission of plans

17 under this section and the information to be in18 cluded in such plans applicable to small Indian

19 tribes and small tribally designated housing entities.

20 Such requirements shall waive any requirements

21 under this section that the Secretary determines are

22 burdensome or unnecessary for such tribes and

23 housing entities.

24 (2) SMALL TRIBES.—The Secretary shall define

25 small Indian tribes and small tribally designated
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1 housing entities based on the number of dwelling

2 units assisted under this title by the tribe or housing

3 entity or owned or operated pursuant to a contract

4 under the United States Housing Act of 1937 be5 tween the Secretary and the Indian housing author6 ity for the tribe.

7 (g) NEGOTIATED RULEMAKING.—The requirements

8 relating to the contents of plans under this section shall

9 be established by regulation. Notwithstanding sections

10 563(a) and 565(a) of title 5, United States Code, any pro11 posed regulation relating to the required contents of plans

12 under this section shall be issued pursuant to a negotiated

13 rulemaking procedure under subchapter III of chapter 5

14 of such title. The Secretary shall establish a negotiated

15 rulemaking committee for development of any such pro16 posed regulations, which shall include representatives of

17 Indian tribes.

18 SEC. 103. REVIEW OF PLANS.

19 (a) REVIEW AND NOTICE.—

20 (1) REVIEW.—The Secretary shall conduct a

21 limited review of each local housing management

22 plan submitted to the Secretary to ensure that the

23 plan complies with the requirements of section 102.

24 The Secretary shall have the discretion to review a
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1 plan only to the extent that the Secretary considers

2 review is necessary.

3 (2) NOTICE.—The Secretary shall notify each

4 Indian tribe for which a plan is submitted and any

5 tribally designated housing entity for the tribe

6 whether the plan complies with such requirements

7 not later than 45 days after receiving the plan. If

8 the Secretary does not notify the Indian tribe, as re9 quired under this subsection and subsection (b), the

10 plan shall be considered, for purposes of this Act, to

11 have been determined to comply with the require12 ments under section 102 and the tribe shall be con13 sidered to have been notified of compliance upon the

14 expiration of such 45-day period.

15 (b) NOTICE OF REASONS FOR DETERMINATION OF

16 NONCOMPLIANCE.—If the Secretary determines that a

17 plan, as submitted, does not comply with the requirements

18 under section 102, the Secretary shall specify in the notice

19 under subsection (a) the reasons for the noncompliance

20 and any modifications necessary for the plan to meet the

21 requirements under section 102.

22 (c) STANDARDS FOR DETERMINATION OF NON23 COMPLIANCE.—The Secretary may determine that a plan

24 does not comply with the requirements under section 102

25 only if—
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1 (1) the plan is not consistent with the national

2 objectives under section 201(a);

3 (2) the plan is incomplete in significant matters

4 required under such section;

5 (3) there is evidence available to the Secretary

6 that challenges, in a substantial manner, any infor7 mation provided in the plan; or

8 (4) the Secretary determines that the plan vio9 lates the purposes of this Act because it fails to pro10 vide affordable housing that will be viable on a long11 term basis at a reasonable cost.

12 (d) TREATMENT OF EXISTING PLANS.—Notwith13 standing any other provision of this Act, a plan shall be

14 considered to have been submitted for an Indian tribe if

15 the appropriate Indian housing authority has submitted

16 to the Secretary a comprehensive plan under section 14(e)

17 of the United States Housing Act of 1937 (as in effect

18 immediately before the enactment of this Act) or under

19 the comprehensive improvement assistance program under

20 such section 14, and the Secretary has approved such

21 plan, before January 1, 1997. The Secretary shall provide

22 specific procedures and requirements for such tribes to

23 amend such plans by submitting only such additional in24 formation as is necessary to comply with the requirements

25 of section 102.
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1 (e) ACTIONS TO CHANGE PLAN.—An Indian tribe for

2 which a plan under section 102 has been submitted may

3 change actions or policies described in the plan before sub4 mission and review of the plan for the next fiscal year only

5 if the tribe (or tribally designated housing entity author6 ized under section 102(d))—

7 (1) in the case of costly or nonroutine changes,

8 submits to the Secretary an amendment to the plan

9 under subsection (f) which is reviewed in accordance

10 with such subsection; or

11 (2) in the case of inexpensive or routine

12 changes, describes such changes in such local hous13 ing management plan for the next fiscal year.

14 (f) AMENDMENTS TO PLAN.—

15 (1) IN GENERAL.—During the annual or 5-year

16 period covered by the plan for an Indian tribe, the

17 tribe (or tribally designated housing entity for the

18 tribe authorized under section 102(e)) may submit

19 to the Secretary any amendments to the plan.

20 (2) REVIEW.—The Secretary shall conduct a

21 limited review of each proposed amendment submit22 ted under this subsection to determine whether the

23 plan, as amended by the amendment, complies with

24 the requirements of section 102 and notify the tribe

25 for which the amendment is submitted whether the
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1 plan, as amended, complies with such requirements

2 not later than 30 days after receiving the amend3 ment. If the Secretary determines that a plan, as

4 amended, does not comply with the requirements

5 under section 102, such notice shall indicate the rea6 sons for the noncompliance and any modifications

7 necessary for the plan to meet the requirements

8 under section 102. If the Secretary does not notify

9 the Indian tribe as required under this paragraph,

10 the plan, as amended, shall be considered, for pur11 poses of this section, to comply with the require12 ments under section 102.

13 (3) STANDARDS FOR DETERMINATION OF NON14 COMPLIANCE.—The Secretary may determine that a

15 plan, as amended by a proposed amendment, does

16 not comply with the requirements under section 102

17 only if—

18 (A) the plan, as amended, would be subject

19 to a determination of noncompliance in accord20 ance with the provisions of subsection (c); or

21 (B) the Secretary determines that—

22 (i) the proposed amendment is plainly

23 inconsistent with the activities specified in

24 the plan; or
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1 (ii) there is evidence that challenges,

2 in a substantial manner, any information

3 contained in the amendment; or

4 (C) the Secretary determines that the plan,

5 as amended, violates the purposes of this Act

6 because it fails to provide affordable housing

7 that will be viable on a long-term basis at a rea8 sonable cost.

9 (4) AMENDMENTS TO EXTEND TIME OF PER10 FORMANCE.—Notwithstanding any other provision of

11 this subsection, the Secretary may not determine

12 that any amendment to the plan for an Indian tribe

13 that extends the time for performance of activities

14 assisted with amounts provided under this Act fails

15 to comply with the requirements under section 102

16 if the Secretary has not provided the amount of as17 sistance set forth in the plan or has not provided the

18 assistance in a timely manner.

19 SEC. 104. TREATMENT OF PROGRAM INCOME AND LABOR

20 STANDARDS.

21 (a) PROGRAM INCOME.—

22 (1) AUTHORITY TO RETAIN.—Notwithstanding

23 any other provision of law, a recipient may retain

24 any program income that is realized from any grant

25 amounts under this Act if—
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1 (A) such income was realized after the ini2 tial disbursement of the grant amounts received

3 by the recipient; and

4 (B) the recipient has agreed that it will

5 utilize the program income for affordable hous6 ing activities in accordance with the provisions

7 of this Act.

8 (2) PROHIBITION OF REDUCTION OF GRANT.—

9 The Secretary may not reduce the grant amount for

10 any Indian tribe based solely on (1) whether the re11 cipient for the tribe retains program income under

12 paragraph (1), or (2) the amount of any such pro13 gram income retained.

14 (3) EXCLUSION OF AMOUNTS.—The Secretary

15 may, by regulation, exclude from consideration as

16 program income any amounts determined to be so

17 small that compliance with the requirements of this

18 subsection would create an unreasonable administra19 tive burden on the recipient.

20 (b) TREATMENT OF LABOR STANDARDS.—The use of

21 amounts provided under this Act to finance (in whole or

22 in part) a contract for construction or rehabilitation work

23 shall not cause such contract to be subject to the require24 ments of the Act of March 3, 1931 (40 U.S.C. 276a–276a25 5; commonly known as the Davis-Bacon Act) or to any
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1 other provision of law requiring payment of wages in ac2 cordance with such Act.

3 SEC. 105. ENVIRONMENTAL REVIEW.

4 (a) IN GENERAL.—In order to ensure that the poli5 cies of the National Environmental Policy Act of 1969 and

6 other provisions of law which further the purposes of such

7 Act (as specified in regulations issued by the Secretary)

8 are most effectively implemented in connection with the

9 expenditure of grant amounts provided under this Act,

10 and to ensure to the public undiminished protection of the

11 environment, the Secretary, in lieu of the environmental

12 protection procedures otherwise applicable, may under

13 regulations provide for the release of amounts for particu14 lar projects to recipients of assistance under this Act who

15 assume all of the responsibilities for environmental review,

16 decisionmaking, and action pursuant to such Act, and

17 such other provisions of law as the regulations of the Sec18 retary specify, that would apply to the Secretary were the

19 Secretary to undertake such projects as Federal projects.

20 The Secretary shall issue regulations to carry out this sec21 tion only after consultation with the Council on Environ22 mental Quality. The regulations shall provide—

23 (1) for the monitoring of the environmental re24 views performed under this section;
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1 (2) in the discretion of the Secretary, to facili2 tate training for the performance of such reviews;

3 and

4 (3) for the suspension or termination of the as5 sumption of responsibilities under this section.

6 The Secretary’s duty under the preceding sentence shall

7 not be construed to limit or reduce any responsibility as8 sumed by a recipient of grant amounts with respect to any

9 particular release of funds.

10 (b) PROCEDURE.—The Secretary shall approve the

11 release of funds subject to the procedures authorized by

12 this section only if, at least 15 days prior to such approval

13 and prior to any commitment of funds to such projects

14 the recipient of grant amounts has submitted to the Sec15 retary a request for such release accompanied by a certifi16 cation which meets the requirements of subsection (c).

17 The Secretary’s approval of any such certification shall be

18 deemed to satisfy the Secretary’s responsibilities under the

19 National Environmental Policy Act of 1969 and such

20 other provisions of law as the regulations of the Secretary

21 specify insofar as those responsibilities relate to the re22 leases of funds for projects to be carried out pursuant

23 thereto which are covered by such certification.

24 (c) CERTIFICATION.—A certification under the proce25 dures authorized by this section shall—
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1 (1) be in a form acceptable to the Secretary,

2 (2) be executed by the chief executive officer or

3 other officer of the recipient of assistance under this

4 Act qualified under regulations of the Secretary,

5 (3) specify that the recipient has fully carried

6 out its responsibilities as described under subsection

7 (a), and

8 (4) specify that the certifying officer (A) con9 sents to assume the status of a responsible Federal

10 official under the National Environmental Policy Act

11 of 1969 and each provision of law specified in regu12 lations issued by the Secretary insofar as the provi13 sions of such Act or such other provisions of law

14 apply pursuant to subsection (a), and (B) is author15 ized and consents on behalf of the recipient of as16 sistance and such officer to accept the jurisdiction of

17 the Federal courts for the purpose of enforcement of

18 the certifying officer’s responsibilities as such an of19 ficial.

20 SEC. 106. REGULATIONS.

21 Except as otherwise specifically provided in this Act,

22 the Secretary shall issue any requirements and regulations

23 necessary to carry out this Act as follows:

24 (1) INTERIM REQUIREMENTS.—Not later than

25 90 days after the date of the enactment of this Act,
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1 the Secretary shall, by notice issued in the Federal

2 Register, establish any requirements necessary to

3 carry out this Act in the manner provided in section

4 107(b), which shall be effective only for fiscal year

5 1997. The notice shall invite public comments re6 garding such interim requirements and final regula7 tions to carry out this Act and shall include general

8 notice of proposed rulemaking (for purposes of sec9 tion 553(b) of title 5, United States Code) of the

10 final regulations under paragraph (2).

11 (2) FINAL REGULATIONS.—The Secretary shall

12 issue any final regulations necessary to carry out

13 this Act not later than September 1, 1997, and such

14 regulations shall take effect not later than the effec15 tive date under section 107(a). The regulations shall

16 be issued after notice and opportunity for public

17 comment in accordance with the procedure under

18 section 553 of title 5, United States Code, applicable

19 to substantive rules (notwithstanding subsections

20 (a)(2), (b)(B), and (d)(3) of such section).

21 SEC. 107. EFFECTIVE DATE.

22 (a) IN GENERAL.—Except as provided in subsection

23 (b) and as otherwise specifically provided in this Act, this

24 Act shall take effect on October 1, 1997.
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1 (b) INTERIM APPLICABILITY.—For fiscal year 1997,

2 this Act shall apply to any Indian tribe that requests the

3 Secretary to apply this Act to such tribe, subject to the

4 provisions of this subsection, but only if the Secretary de5 termines that the tribe has the capacity to carry out the

6 responsibilities under this Act during such fiscal year. For

7 fiscal year 1997, this Act shall apply to any such tribe

8 subject to the following limitations:

9 (1) USE OF ASSISTANCE AMOUNTS AS BLOCK

10 GRANT.—Amounts shall not be made available pur11 suant to this Act for grants under this Act for such

12 fiscal year, but any amounts made available for the

13 tribe under the United States Housing Act of 1937,

14 title II or subtitle D of title IV of the Cranston-Gon15 zalez National Affordable Housing Act, title IV of

16 the Stewart B. McKinney Homeless Assistance Act,

17 or section 2 of the HUD Demonstration Act of 1993

18 shall be considered grant amounts under this Act

19 and shall be used subject to the provisions of this

20 Act relating to such grant amounts.

21 (2) LOCAL HOUSING MANAGEMENT PLAN.—

22 Notwithstanding section 103 of this Act, a local

23 housing management plan shall be considered to

24 have been submitted for the tribe for fiscal year

25 1997 for purposes of this Act only if—
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1 (A) the appropriate Indian housing author2 ity has submitted to the Secretary a com3 prehensive plan under section 14(e) of the Unit4 ed States Housing Act of 1937 or under the

5 comprehensive improvement assistance program

6 under such section 14;

7 (B) the Secretary has approved such plan

8 before January 1, 1996; and

9 (C) the tribe complies with specific proce10 dures and requirements for amending such plan

11 as the Secretary may establish to carry out this

12 subsection.

13 SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

14 There is authorized to be appropriated for grants

15 under title I $650,000,000, for each of fiscal years 1998,

16 1999, 2000, and 2001.

17 TITLE II—AFFORDABLE

18 HOUSING ACTIVITIES

19 SEC. 201. NATIONAL OBJECTIVES AND OCCUPANCY BY IN20 DIAN FAMILIES.

21 (a) PRIMARY OBJECTIVE.—The national objectives of

22 this Act are—

23 (1) to assist and promote affordable housing ac24 tivities to develop, maintain, and operate safe, clean,

25 and healthy affordable housing on Indian reserva-
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•HR 3219 IH

1 tions and in other Indian areas for occupancy by

2 low-income Indian families;

3 (2) to ensure better access to private mortgage

4 markets for Indian tribes and their members and to

5 promote self-sufficiency of Indian tribes and their

6 members;

7 (3) to coordinate activities to provide housing

8 for Indian tribes and their members with Federal,

9 State, and local activities to further economic and

10 community development for Indian tribes and their

11 members;

12 (4) to plan for and integrate infrastructure re13 sources for Indian tribes with housing development

14 for tribes; and

15 (5) to promote the development of private cap16 ital markets in Indian country and to allow such

17 markets to operate and grow, thereby benefiting In18 dian communities.

19 (b) OCCUPANCY BY INDIAN FAMILIES.—The local

20 housing management plan for an Indian tribe may require

21 preference, for housing or housing assistance provided

22 through affordable housing activities assisted with grant

23 amounts provided under this Act on behalf of such tribe,

24 to be given (to the extent practicable) to Indian families

25 who are members of such tribe. In any case in which the
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1 applicable local housing management plan for an Indian

2 tribe provides for preference under this subsection, the re3 cipient for the tribe shall ensure that housing activities

4 that are assisted with grant amounts under this Act for

5 such tribe are subject to such preference.

6 SEC. 202. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

7 Affordable housing activities under this title are ac8 tivities, in accordance with the requirements of this title,

9 to develop or to support affordable housing for rental or

10 homeownership, or to provide housing services with re11 spect to affordable housing, through the following activi12 ties:

13 (1) INDIAN HOUSING ASSISTANCE.—The provi14 sion of modernization or operating assistance for

15 housing previously developed or operated pursuant

16 to a contract between the Secretary and an Indian

17 housing authority.

18 (2) DEVELOPMENT.—The acquisition, new con19 struction, reconstruction, or moderate or substantial

20 rehabilitation of affordable housing, which may in21 clude real property acquisition, site improvement,

22 development of utilities and utility services, conver23 sion, demolition, financing, administration and plan24 ning, and other related activities.
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1 (3) HOUSING SERVICES.—The provision of

2 housing-related services for affordable housing, such

3 as housing counseling in connection with rental or

4 homeownership assistance, energy auditing, and

5 other services related to assisting owners, tenants,

6 contractors, and other entities, participating or seek7 ing to participate in other housing activities assisted

8 pursuant to this section.

9 (4) HOUSING MANAGEMENT SERVICES.—The

10 provision of management services for affordable

11 housing, including preparation of work specifica12 tions, loan processing, inspections, tenant selection,

13 management of tenant-based rental assistance, and

14 management of affordable housing projects.

15 (5) CRIME PREVENTION AND SAFETY ACTIVI16 TIES.—The provision of safety, security, and law en17 forcement measures and activities appropriate to

18 protect residents of affordable housing from crime.

19 (6) MODEL ACTIVITIES.—Housing activities

20 under model programs that are designed to carry

21 out the purposes of this Act and are approved by the

22 Secretary as appropriate for such purpose.

23 SEC. 203. REQUIRED AFFORDABLE HOUSING ACTIVITIES.

24 (a) MAINTENANCE OF OPERATING ASSISTANCE FOR

25 INDIAN HOUSING.—Any recipient who owns or operates
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1 (or is responsible for funding any entity that owns or oper2 ates) housing developed or operated pursuant to a contract

3 between the Secretary and an Indian housing authority

4 pursuant to the United States Housing Act of 1937 shall,

5 using amounts of any grants received under this Act, re6 serve and use for operating assistance under section

7 202(1) such amounts as may be necessary to provide for

8 the continued maintenance and efficient operation of such

9 housing.

10 (b) DEMOLITION AND DISPOSITION.—This Act may

11 not be construed to prevent any recipient (or entity funded

12 by a recipient) from demolishing or disposing of Indian

13 housing referred to in such subsection. Any provision of

14 Federal law applicable to the demolition or disposition of

15 public housing assisted under the United States Housing

16 Act of 1937 (or any successor Act providing financial as17 sistance for the operation of public housing) shall apply

18 to the demolition or disposition of Indian housing referred

19 to in subsection (a).

20 SEC. 204. TYPES OF INVESTMENTS.

21 (a) IN GENERAL.—Subject to section 203 and the

22 local housing management plan for an Indian tribe, the

23 recipient for such tribe shall have—

24 (1) the discretion to use grant amounts for af25 fordable housing activities through equity invest-
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1 ments, interest-bearing loans or advances,

2 noninterest-bearing loans or advances, interest sub3 sidies, leveraging of private investments under sub4 section (b), or any other form of assistance that the

5 Secretary has determined to be consistent with the

6 purposes of this Act; and

7 (2) the right to establish the terms of assist8 ance.

9 (b) LEVERAGING PRIVATE INVESTMENT.—A recipi10 ent may leverage private investments in affordable housing

11 activities by pledging existing or future grant amounts to

12 assure the repayment of notes and other obligations of the

13 recipient issued for purposes of carrying out affordable

14 housing activities.

15 SEC. 205. LOW-INCOME REQUIREMENT AND INCOME

16 TARGETING.

17 Housing shall qualify as affordable housing for pur18 poses of this Act only if—

19 (1) each dwelling unit in the housing—

20 (A) in the case of rental housing, is made

21 available for occupancy only by a family that is

22 a low-income family at the time of their initial

23 occupancy of such unit; and

24 (B) in the case of housing for homeowner25 ship, is made available for purchase only by a
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1 family that is a low-income family at the time

2 of purchase; and

3 (2) each dwelling unit in the housing will re4 main affordable, according to binding commitments

5 satisfactory to the Secretary, for the remaining use6 ful life of the property (as determined by the Sec7 retary) without regard to the term of the mortgage

8 or to transfer of ownership, or for such other period

9 that the Secretary determines is the longest feasible

10 period of time consistent with sound economics and

11 the purposes of this Act, except upon a foreclosure

12 by a lender (or upon other transfer in lieu of fore13 closure) if such action (A) recognizes any contrac14 tual or legal rights of public agencies, nonprofit

15 sponsors, or others to take actions that would avoid

16 termination of low-income affordability in the case of

17 foreclosure or transfer in lieu of foreclosure, and (B)

18 is not for the purpose of avoiding low-income afford19 ability restrictions, as determined by the Secretary.

20 SEC. 206. CERTIFICATION OF COMPLIANCE WITH SUBSIDY

21 LAYERING REQUIREMENTS.

22 With respect to housing assisted with grant amounts

23 provided under this Act, the requirements of section

24 102(d) of the Department of Housing and Urban Develop25 ment Reform Act of 1989 shall be considered to be satis-
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1 fied upon certification by the recipient of the assistance

2 to the Secretary that the combination of Federal assist3 ance provided to any housing project is not any more than

4 is necessary to provide affordable housing.

5 SEC. 207. LEASE REQUIREMENTS AND TENANT SELECTION.

6 (a) LEASES.—In renting dwelling units in affordable

7 housing assisted with grant amounts provided under this

8 Act, the owner or manager of the housing shall utilize

9 leases that—

10 (1) do not contain unreasonable terms and con11 ditions;

12 (2) require the owner or manager to maintain

13 the housing in compliance with applicable housing

14 codes and quality standards;

15 (3) require the owner or manager to give ade16 quate written notice of termination of the lease,

17 which shall not be less than—

18 (A) the period provided under the applica19 ble law of the jurisdiction or 14 days, whichever

20 is less, in the case of nonpayment of rent;

21 (B) a reasonable period of time, but not to

22 exceed 14 days, when the health or safety of

23 other residents or employees of the owner or

24 manager is threatened; and
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1 (C) the period of time provided under the

2 applicable law of the jurisdiction, in any other

3 case;

4 (4) require that the owner or manager may not

5 terminate the tenancy except for violation of the

6 terms or conditions of the lease, violation of applica7 ble Federal, tribal, State, or local law, or for other

8 good cause; and

9 (5) provide that the owner or manager may ter10 minate the tenancy of a resident for any activity, en11 gaged in by the resident, any member of the resi12 dent’s household, or any guest or other person under

13 the resident’s control, that—

14 (A) threatens the health or safety of, or

15 right to peaceful enjoyment of the premises by,

16 other residents or employees of the owner or

17 manager of the housing;

18 (B) threatens the health or safety of, or

19 right to peaceful enjoyment of their premises

20 by, persons residing in the immediate vicinity of

21 the premises; or

22 (C) is criminal activity (including drug-re23 lated criminal activity).

24 (b) TENANT SELECTION.—The owner or manager of

25 affordable rental housing assisted under with grant
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1 amounts provided under this Act shall adopt and utilize

2 written tenant selection policies and criteria that—

3 (1) are consistent with the purpose of providing

4 housing for low-income families;

5 (2) are reasonably related to program eligibility

6 and the applicant’s ability to perform the obligations

7 of the lease; and

8 (3) provide for (A) the selection of tenants from

9 a written waiting list in accordance with the policies

10 and goals set forth in the local housing management

11 plan for the tribe that is the grant beneficiary of

12 such grant amounts, and (B) the prompt notification

13 in writing of any rejected applicant of the grounds

14 for any rejection.

15 SEC. 208. REPAYMENT.

16 If a recipient uses grant amounts to provide afford17 able housing under activities under this title and, at any

18 time during the useful life of the housing the housing does

19 not comply with the requirement under section 205(a)(2),

20 the Secretary shall reduce future grant payments on be21 half of the grant beneficiary by an amount equal to the

22 grant amounts used for such housing (under the authority

23 under section 401(a)(2)) or require repayment to the Sec24 retary of an amount equal to such grant amounts.
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1 TITLE III—ALLOCATION OF

2 GRANT AMOUNTS

3 SEC. 301. ANNUAL ALLOCATION.

4 For each fiscal year, the Secretary shall allocate any

5 amounts made available for assistance under this Act for

6 the fiscal year, in accordance with the formula established

7 pursuant to section 302, among Indian tribes that comply

8 with the requirements under this Act for a grant under

9 this Act.

10 SEC. 302. ALLOCATION FORMULA.

11 (a) REQUIREMENTS.—The Secretary shall, by regula12 tion under subsection (b), establish a formula to provide

13 for allocating amounts available for a fiscal year for block

14 grants under this Act among Indian tribes. The formula

15 shall be based on factors that reflect the need of the In16 dian tribes and the Indian areas of the tribes for assist17 ance for affordable housing activities, including the follow18 ing factors:

19 (1) The number of low-income housing dwelling

20 units owned or operated at the time pursuant to a

21 contract between an Indian housing authority for

22 the tribe and the Secretary.

23 (2) The extent of poverty and economic distress

24 within Indian areas of the tribe.
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1 (3) Other objectively measurable conditions as

2 the Secretary may specify.

3 (b) DEVELOPMENT UNDER NEGOTIATED RULE4 MAKING PROCEDURE.—Notwithstanding sections 563(a)

5 and 565(a) of title 5, United States Code, the regulations

6 required under subsection (a) of this section shall be is7 sued according to a negotiated rulemaking procedure

8 under subchapter III of chapter 5 of title 5, United States

9 Code, not later than the expiration of the 12-month period

10 beginning on the date of the enactment of this Act. The

11 Secretary shall establish a negotiated rulemaking commit12 tee for development of any such proposed regulations,

13 which shall include representatives of Indian tribes.

14 TITLE IV—COMPLIANCE,

15 AUDITS, AND REPORTS

16 SEC. 401. REMEDIES FOR NONCOMPLIANCE.

17 (a) ACTIONS BY SECRETARY AFFECTING GRANT

18 AMOUNTS.—Except as provided in subsection (b), if the

19 Secretary finds after reasonable notice and opportunity for

20 hearing that a recipient of assistance under this Act has

21 failed to comply substantially with any provision of this

22 Act, the Secretary shall—

23 (1) terminate payments under this Act to the

24 recipient;
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1 (2) reduce payments under this Act to the re2 cipient by an amount equal to the amount of such

3 payments which were not expended in accordance

4 with this Act;

5 (3) limit the availability of payments under this

6 Act to programs, projects, or activities not affected

7 by such failure to comply; or

8 (4) in the case of noncompliance described in

9 section 402(b), provide a replacement tribally des10 ignated housing entity for the recipient, under sec11 tion 402.

12 If the Secretary takes an action under paragraph (1), (2),

13 or (3), the Secretary shall continue such action until the

14 Secretary determines that the failure to comply has

15 ceased.

16 (b) NONCOMPLIANCE BECAUSE OF TECHNICAL INCA17 PACITY.—If the Secretary makes a finding under sub18 section (a), but determines that the failure to comply sub19 stantially with the provisions of this Act—

20 (1) is not a pattern or practice of activities con21 stituting willful noncompliance, and

22 (2) is a result of the limited capability or capac23 ity of the recipient,

24 the Secretary may provide technical assistance for the re25 cipient (directly or indirectly) that is designed to increase
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1 the capability and capacity of the recipient to administer

2 assistance provided under this Act in compliance with the

3 requirements under this Act.

4 (c) REFERRAL FOR CIVIL ACTION.—

5 (1) AUTHORITY.—In lieu of, or in addition to,

6 any action authorized by subsection (a), the Sec7 retary may, if the Secretary has reason to believe

8 that a recipient has failed to comply substantially

9 with any provision of this Act, refer the matter to

10 the Attorney General of the United States with a

11 recommendation that an appropriate civil action be

12 instituted.

13 (2) CIVIL ACTION.—Upon such a referral, the

14 Attorney General may bring a civil action in any

15 United States district court having venue thereof for

16 such relief as may be appropriate, including an ac17 tion to recover the amount of the assistance fur18 nished under this Act which was not expended in ac19 cordance with it, or for mandatory or injunctive re20 lief.

21 (d) REVIEW.—

22 (1) IN GENERAL.—Any recipient who receives

23 notice under subsection (a) of the termination, re24 duction, or limitation of payments under this Act

25 may, within 60 days after receiving such notice, file
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1 with the United States Court of Appeals for the cir2 cuit in which such State is located, or in the United

3 States Court of Appeals for the District of Colum4 bia, a petition for review of the Secretary’s action.

5 The petitioner shall forthwith transmit copies of the

6 petition to the Secretary and the Attorney General

7 of the United States, who shall represent the Sec8 retary in the litigation.

9 (2) PROCEDURE.—The Secretary shall file in

10 the court record of the proceeding on which the Sec11 retary based the action, as provided in section 2112

12 of title 28, United States Code. No objection to the

13 action of the Secretary shall be considered by the

14 court unless such objection has been urged before

15 the Secretary.

16 (3) DISPOSITION.—The court shall have juris17 diction to affirm or modify the action of the Sec18 retary or to set it aside in whole or in part. The

19 findings of fact by the Secretary, if supported by

20 substantial evidence on the record considered as a

21 whole, shall be conclusive. The court may order addi22 tional evidence to be taken by the Secretary, and to

23 be made part of the record. The Secretary may mod24 ify the Secretary’s findings of fact, or make new

25 findings, by reason of the new evidence so taken and
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1 filed with the court, and the Secretary shall also file

2 such modified or new findings, which findings with

3 respect to questions of fact shall be conclusive if

4 supported by substantial evidence on the record con5 sidered as a whole, and shall also file the Secretary’s

6 recommendation, if any, for the modification or set7 ting aside of the Secretary’s original action.

8 (4) FINALITY.—Upon the filing of the record

9 with the court, the jurisdiction of the court shall be

10 exclusive and its judgment shall be final, except that

11 such judgment shall be subject to review by the Su12 preme Court of the United States upon writ of cer13 tiorari or certification as provided in section 1254 of

14 title 28, United State Code.

15 SEC. 402. REPLACEMENT OF RECIPIENT.

16 (a) AUTHORITY.—As a condition of the Secretary

17 making a grant under this Act on behalf of an Indian

18 tribe, the tribe shall agree that, notwithstanding any other

19 provision of law, the Secretary may, only in the cir20 cumstances set forth in subsection (b), require that a re21 placement tribally designated housing entity serve as the

22 recipient for the tribe, in accordance with subsection (c).

23 (b) CONDITIONS OF REMOVAL.—The Secretary may

24 require such replacement tribally designated housing en25 tity for a tribe only upon a determination by the Secretary
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1 on the record after opportunity for a hearing that the re2 cipient for the tribe has engaged in a pattern or practice

3 of activities that constitutes substantial or willful non4 compliance with the requirements under this Act.

5 (c) CHOICE AND TERM OF REPLACEMENT.—If the

6 Secretary requires that a replacement tribally designated

7 housing entity serve as the recipient for a tribe (or

8 tribes)—

9 (1) the replacement entity shall be an entity

10 mutually agreed upon by the Secretary and the tribe

11 (or tribes) for which the recipient was authorized to

12 act, except that if no such entity is agreed upon be13 fore the expiration of the 60-day period beginning

14 upon the date that the Secretary makes the deter15 mination under subsection (b), the Secretary shall

16 act as the replacement entity until agreement is

17 reached upon a replacement entity; and

18 (2) the replacement entity (or the Secretary, as

19 provided in paragraph (1)) shall act as the tribally

20 designated housing entity for the tribe (or tribes) for

21 a period that expires upon—

22 (A) a date certain, which shall be specified

23 by the Secretary upon making the determina24 tion under subsection (b); or
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1 (B) the occurrence of specific conditions,

2 which conditions shall be specified in written

3 notice provided by the Secretary to the tribe

4 upon making the determination under sub5 section (b).

6 SEC. 403. MONITORING OF COMPLIANCE.

7 (a) ENFORCEABLE AGREEMENTS.—Each recipient,

8 through binding contractual agreements with owners and

9 otherwise, shall ensure long-term compliance with the pro10 visions of this Act. Such measures shall provide for (1)

11 enforcement of the provisions of this Act by the grant ben12 eficiary or by recipients and other intended beneficiaries,

13 and (2) remedies for the breach of such provisions.

14 (b) PERIODIC MONITORING.—Not less frequently

15 than annually, each recipient shall review the activities

16 conducted and housing assisted under this Act to assess

17 compliance with the requirements of this Act. Such review

18 shall include on-site inspection of housing to determine

19 compliance with applicable requirements. The results of

20 each review shall be included in the performance report

21 of the recipient submitted to the Secretary under section

22 404 and made available to the public.

23 SEC. 404. PERFORMANCE REPORTS.

24 (a) REQUIREMENT.—For each fiscal year, each recip25 ient shall—
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1 (1) review the progress it has made during such

2 fiscal year in carrying out the local housing manage3 ment plan (or plans) for the Indian tribes for which

4 it administers grant amounts; and

5 (2) submit a report to the Secretary (in a form

6 acceptable to the Secretary) describing the conclu7 sions of the review.

8 (b) CONTENT.—Each report under this section for a

9 fiscal year shall—

10 (1) describe the use of grant amounts provided

11 to the recipient for such fiscal year;

12 (2) assess the relationship of such use to the

13 goals identified in the local housing management

14 plan of the grant beneficiary;

15 (3) indicate the recipient’s programmatic ac16 complishments; and

17 (4) describe how the recipient would change its

18 programs as a result of its experiences.

19 (c) SUBMISSION.—The Secretary shall establish dates

20 for submission of reports under this section, and review

21 such reports and make such recommendations as the Sec22 retary considers appropriate to carry out the purposes of

23 this Act.

24 (d) PUBLIC AVAILABILITY.—A recipient preparing a

25 report under this section shall make the report publicly
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1 available to the citizens in the recipient’s jurisdiction in

2 sufficient time to permit such citizens to comment on such

3 report prior to its submission to the Secretary, and in such

4 manner and at such times as the recipient may determine.

5 The report shall include a summary of any comments re6 ceived by the grant beneficiary or recipient from citizens

7 in its jurisdiction regarding its program.

8 SEC. 405. REVIEW AND AUDIT BY SECRETARY.

9 (a) ANNUAL REVIEW.—The Secretary shall, at least

10 on an annual basis, make such reviews and audits as may

11 be necessary or appropriate to determine—

12 (1) whether the recipient has carried out its eli13 gible activities in a timely manner, has carried out

14 its eligible activities and certifications in accordance

15 with the requirements and the primary objectives of

16 this Act and with other applicable laws, and has a

17 continuing capacity to carry out those activities in a

18 timely manner;

19 (2) whether the recipient has complied with the

20 local housing management plan of the grant bene21 ficiary; and

22 (3) whether the performance reports under sec23 tion 404 of the recipient are accurate.
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1 Reviews under this section shall include, insofar as prac2 ticable, on-site visits by employees of the Department of

3 Housing and Urban Development.

4 (b) REPORT BY SECRETARY.—The Secretary shall

5 submit a written report to the Congress regarding each

6 review under subsection (a). The Secretary shall give a

7 recipient not less than 30 days to review and comment

8 on a report under this subsection. After taking into con9 sideration the comments of the recipient, the Secretary

10 may revise the report and shall make the recipient’s com11 ments and the report, with any revisions, readily available

12 to the public not later than 30 days after receipt of the

13 recipient’s comments.

14 (c) EFFECT OF REVIEWS.—The Secretary may make

15 appropriate adjustments in the amount of the annual

16 grants under this Act in accordance with the Secretary’s

17 findings pursuant to reviews and audits under this section.

18 The Secretary may adjust, reduce, or withdraw grant

19 amounts, or take other action as appropriate in accord20 ance with the Secretary’s reviews and audits under this

21 section, except that grant amounts already expended on

22 affordable housing activities may not be recaptured or de23 ducted from future assistance provided on behalf of an In24 dian tribe.
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1 SEC. 406. GAO AUDITS.

2 To the extent that the financial transactions of In3 dian tribes and recipients of grant amounts under this Act

4 relate to amounts provided under this Act, such trans5 actions may be audited by the Comptroller General of the

6 United States under such rules and regulations as may

7 be prescribed by the Comptroller General. The representa8 tives of the General Accounting Office shall have access

9 to all books, accounts, records, reports, files, and other

10 papers, things, or property belonging to or in use by such

11 tribes and recipients pertaining to such financial trans12 actions and necessary to facilitate the audit.

13 SEC. 407. REPORTS TO CONGRESS.

14 (a) IN GENERAL.—Not later than 90 days after the

15 conclusion of each fiscal year in which assistance under

16 this Act is made available, the Secretary shall submit to

17 the Congress a report that contains—

18 (1) a description of the progress made in ac19 complishing the objectives of this Act; and

20 (2) a summary of the use of such funds during

21 the preceding fiscal year.

22 (b) RELATED REPORTS.—The Secretary may require

23 recipients of grant amounts under this Act to submit to

24 the Secretary such reports and other information as may

25 be necessary in order for the Secretary to make the report

26 required by subsection (a).
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1 TITLE V—TERMINATION OF AS2 SISTANCE FOR INDIAN

3 TRIBES UNDER INCOR4 PORATED PROGRAMS

5 SEC. 501. TERMINATION OF INDIAN PUBLIC HOUSING AS6 SISTANCE UNDER UNITED STATES HOUSING

7 ACT OF 1937.

8 (a) IN GENERAL.—After September 30, 1997, finan9 cial assistance may not be provided under the United

10 States Housing Act of 1937 or pursuant to any commit11 ment entered into under such Act, for Indian housing de12 veloped or operated pursuant to a contract between the

13 Secretary and an Indian housing authority, unless such

14 assistance is provided from amounts made available for

15 fiscal year 1997 and pursuant to a commitment entered

16 into before September 30, 1997.

17 (b) TERMINATION OF RESTRICTIONS ON USE OF IN18 DIAN HOUSING.—Except as provided in section 203(b) of

19 this Act, any housing developed or operated pursuant to

20 a contract between the Secretary and an Indian housing

21 authority pursuant to the United States Housing Act of

22 1937 shall not be subject to any provision of such Act

23 or any annual contributions contract or other agreement

24 pursuant to such Act, but shall be considered and main25 tained as affordable housing for purposes of this Act.
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1 SEC. 502. TERMINATION OF NEW COMMITMENTS FOR RENT2 AL ASSISTANCE.

3 After September 30, 1997, financial assistance for

4 rental housing assistance under the United States Hous5 ing Act of 1937 may not be provided to any Indian hous6 ing authority or tribally designated housing entity, unless

7 such assistance is provided pursuant to a contract for such

8 assistance entered into by the Secretary and the Indian

9 housing authority before such date.

10 SEC. 503. TERMINATION OF YOUTHBUILD PROGRAM AS11 SISTANCE.

12 (a) IN GENERAL.—Subtitle D of title IV of the Cran13 ston-Gonzalez National Affordable Housing Act (42

14 U.S.C. 12899 et seq.) is amended—

15 (1) by redesignating section 460 as section 461;

16 and

17 (2) by inserting after section 459 the following

18 new section:

19 ‘‘SEC. 460. INELIGIBILITY OF INDIAN TRIBES.

20 ‘‘Indian tribes, Indian housing authorities, and other

21 agencies primarily serving Indians or Indian areas shall

22 not be eligible applicants for amounts made available for

23 assistance under this subtitle for fiscal year 1997 and fis24 cal years thereafter.’’.

25 (b) EFFECTIVE DATE AND APPLICABILITY.—The

26 amendments under subsection (a) shall be made on Octo-
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1 ber 1, 1997, and shall apply with respect to amounts made

2 available for assistance under subtitle D of title II of the

3 Cranston-Gonzalez National Affordable Housing Act for

4 fiscal year 1998 and fiscal years thereafter.

5 SEC. 504. TERMINATION OF HOME PROGRAM ASSISTANCE.

6 (a) IN GENERAL.—Title II of the Cranston-Gonzalez

7 National Affordable Housing Act (42 U.S.C. 12721 et

8 seq.) is amended—

9 (1) in section 217(a)—

10 (A) in paragraph (1), by striking ‘‘reserv11 ing amounts under paragraph (2) for Indian

12 tribes and after’’; and

13 (B) by striking paragraph (2); and

14 (2) in section 288—

15 (A) in subsection (a), by striking ‘‘, Indian

16 tribes,’’;

17 (B) in subsection (b), by striking ‘‘, Indian

18 tribe,’’; and

19 (C) in subsection (c)(4), by striking ‘‘, In20 dian tribe,’’.

21 (b) EFFECTIVE DATE AND APPLICABILITY.—The

22 amendments under subsection (a) shall be made on Octo23 ber 1, 1997, and shall apply with respect to amounts made

24 available for assistance under title II of the Cranston-Gon-
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1 zalez National Affordable Housing Act for fiscal year

2 1998 and fiscal years thereafter.

3 SEC. 505. TERMINATION OF HOUSING ASSISTANCE FOR THE

4 HOMELESS.

5 (a) MCKINNEY ACT PROGRAMS.—Title IV of the

6 Stewart B. McKinney Homeless Assistance Act (42 U.S.C.

7 11361 et seq.) is amended—

8 (1) in section 411, by striking paragraph (10);

9 (2) in section 412, by striking ‘‘, and for Indian

10 tribes,’’;

11 (3) in section 413—

12 (A) in subsection (a)—

13 (i) by striking ‘‘, and to Indian

14 tribes,’’; and

15 (ii) by striking ‘‘, or for Indian tribes’’

16 each place it appears;

17 (B) in subsection (c), by striking ‘‘or In18 dian tribe’’; and

19 (C) in subsection (d)(3)—

20 (i) by striking ‘‘, or Indian tribe’’ each

21 place it appears; and

22 (ii) by striking ‘‘, or other Indian

23 tribes,’’;

24 (4) in section 414(a)—
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1 (A) by striking ‘or Indian tribe’’ each place

2 it appears; and

3 (B) by striking ‘‘, local government,’’ each

4 place it appears and inserting ‘‘or local govern5 ment’’;

6 (5) in section 415(c)(4), by striking ‘‘Indian

7 tribes,’’;

8 (6) in section 416(b), by striking ‘‘Indian

9 tribe,’’;

10 (7) in section 422—

11 (A) in by striking ‘‘Indian tribe,’’; and

12 (B) by striking paragraph (3);

13 (8) in section 441—

14 (A) by striking subsection (g);

15 (B) in subsection (h), by striking ‘‘or In16 dian housing authority’’; and

17 (C) in subsection (j)(1), by striking ‘‘, In18 dian housing authority’’;

19 (9) in section 462—

20 (A) in paragraph (2), by striking ‘‘, Indian

21 tribe,’’; and

22 (B) by striking paragraph (4); and

23 (10) in section 491(e), by striking ‘‘, Indian

24 tribes (as such term is defined in section 102(a) of
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1 the Housing and Community Development Act of

2 1974),’’.

3 (b) INNOVATIVE HOMELESS DEMONSTRATION.—Sec4 tion 2(b) of the HUD Demonstration Act of 1993 (42

5 U.S.C. 11301 note) is amended—

6 (1) in paragraph (3), by striking ‘‘ ‘unit of gen7 eral local government’, and ‘Indian tribe’ ’’ and in8 serting ‘‘and ‘unit of general local government’ ’’;

9 and

10 (2) in paragraph (4), by striking ‘‘unit of gen11 eral local government (including units in rural

12 areas), or Indian tribe’’ and inserting ‘‘or unit of

13 general local government’’.

14 (c) EFFECTIVE DATE AND APPLICABILITY.—The

15 amendments under subsections (a) and (b) shall be made

16 on October 1, 1997, and shall apply with respect to

17 amounts made available for assistance under title IV of

18 the Stewart B. McKinney Homeless Assistance Act and

19 section 2 of the HUD Demonstration Act of 1993, respec20 tively, for fiscal year 1998 and fiscal years thereafter.

21 SEC. 506. SAVINGS PROVISION.

22 Except as provided in sections 501 and 502, this Act

23 may not be construed to affect the validity of any right,

24 duty, or obligation of the United States or other person

25 arising under or pursuant to any commitment or agree-
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1 ment lawfully entered into before October 1, 1997, under

2 the United States Housing Act of 1937, subtitle D of title

3 IV of the Cranston-Gonzalez National Affordable Housing

4 Act, title II of the Cranston-Gonzalez National Affordable

5 Housing Act, title IV of the Stewart B. McKinney Home6 less Assistance Act, or section 2 of the HUD Demonstra7 tion Act of 1993.

8 SEC. 507. EFFECTIVE DATE.

9 Sections 501, 502, and 506 shall take effect on the

10 date of the enactment of this Act.

11 TITLE VI—LOAN GUARANTEES

12 FOR AFFORDABLE HOUSING

13 ACTIVITIES

14 SEC. 601. AUTHORITY AND REQUIREMENTS.

15 (a) AUTHORITY.—To such extent or in such amounts

16 as provided in appropriation Acts, the Secretary may, sub17 ject to the limitations of this title and upon such terms

18 and conditions as the Secretary may prescribe, guarantee

19 and make commitments to guarantee, the notes or other

20 obligations issued by Indian tribes or tribally designated

21 housing entities, for the purposes of financing affordable

22 housing activities described in section 202.

23 (b) LACK OF FINANCING ELSEWHERE.—A guarantee

24 under this title may be used to assist an Indian tribe or

25 housing entity in obtaining financing only if the Indian
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1 tribe or housing entity has made efforts to obtain such

2 financing without the use of such guarantee and cannot

3 complete such financing consistent with the timely execu4 tion of the program plans without such guarantee.

5 (c) TERMS OF LOANS.—Notes or other obligations

6 guaranteed pursuant to this title shall be in such form

7 and denominations, have such maturities, and be subject

8 to such conditions as may be prescribed by regulations is9 sued by the Secretary. The Secretary may not deny a

10 guarantee under this title on the basis of the proposed

11 repayment period for the note or other obligation, unless

12 the period is more than 20 years or the Secretary deter13 mines that the period causes the guarantee to constitute

14 an unacceptable financial risk.

15 (d) LIMITATION ON OUTSTANDING GUARANTEES.—

16 No guarantee or commitment to guarantee shall be made

17 with respect to any note or other obligation if the issuer’s

18 total outstanding notes or obligations guaranteed under

19 this title (excluding any amount defeased under the con20 tract entered into under section 602(a)(1)) would thereby

21 exceed an amount equal to 5 times the amount of the

22 grant approval for the issuer pursuant to title III.

23 (e) PROHIBITION OF PURCHASE BY FFB.—Notes or

24 other obligations guaranteed under this title may not be

25 purchased by the Federal Financing Bank.
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1 (f) PROHIBITION OF GUARANTEE FEES.—No fee or

2 charge may be imposed by the Secretary or any other Fed3 eral agency on or with respect to a guarantee made by

4 the Secretary under this title.

5 SEC. 602. SECURITY AND REPAYMENT.

6 (a) REQUIREMENTS ON ISSUER.—To assure the re7 payment of notes or other obligations and charges in8 curred under this title and as a condition for receiving

9 such guarantees, the Secretary shall require the Indian

10 tribe or housing entity issuing such notes or obligations

11 to—

12 (1) enter into a contract, in a form acceptable

13 to the Secretary, for repayment of notes or other ob14 ligations guaranteed under this title;

15 (2) pledge any grant for which the issuer may

16 become eligible under this Act; and

17 (3) furnish, at the discretion of the Secretary,

18 such other security as may be deemed appropriate

19 by the Secretary in making such guarantees, includ20 ing increments in local tax receipts generated by the

21 activities assisted under this Act or dispositions pro22 ceeds from the sale of land or rehabilitated property.

23 (b) REPAYMENT FROM GRANT AMOUNTS.—Notwith24 standing any other provision of this Act—
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1 (1) the Secretary may apply grants pledged

2 pursuant to subsection (a)(2) to any repayments due

3 the United States as a result of such guarantees;

4 and

5 (2) grants allocated under this Act for an In6 dian tribe or housing entity (including program in7 come derived therefrom) may be used to pay prin8 cipal and interest due (including such servicing, un9 derwriting, and other costs as may be specified in

10 regulations issued by the Secretary) on notes or

11 other obligations guaranteed pursuant to this title.

12 (c) FULL FAITH AND CREDIT.—The full faith and

13 credit of the United States is pledged to the payment of

14 all guarantees made under this title. Any such guarantee

15 made by the Secretary shall be conclusive evidence of the

16 eligibility of the obligations for such guarantee with re17 spect to principal and interest, and the validity of any such

18 guarantee so made shall be incontestable in the hands of

19 a holder of the guaranteed obligations.

20 SEC. 603. INTEREST.

21 (a) TAX TREATMENT.—The interest paid on any obli22 gation issued by an Indian tribe or housing entity and

23 guaranteed pursuant to this title shall be included in gross

24 income for the purpose of chapter 1 of the Internal Reve25 nue Code of 1954.
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1 (b) GRANTS.—The Secretary may make, and contract

2 to make, grants, in such amounts as may be approved in

3 appropriations Acts, to or on behalf of an Indian tribe or

4 housing entity issuing notes or other obligations guaran5 teed under this title, to cover not to exceed 30 percent

6 of the net interest cost (including such servicing, under7 writing, or other costs as may be specified in regulations

8 of the Secretary) to the borrowing entity or agency of such

9 obligations. The Secretary may also, to the extent ap10 proved in appropriation Acts, assist the issuer of a note

11 or other obligation guaranteed under this title in the pay12 ment of all or a portion of the principal and interest

13 amount due under the note or other obligation, if the Sec14 retary determines that the issuer is unable to pay the

15 amount because of circumstances of extreme hardship be16 yond the control of the issuer.

17 SEC. 604. TREASURY BORROWING.

18 The Secretary may issue obligations to the Secretary

19 of the Treasury in an amount outstanding at any one time

20 sufficient to enable the Secretary to carry out the obliga21 tions of the Secretary under guarantees authorized by this

22 title. The obligations issued under this section shall have

23 such maturities and bear such rate or rates of interest

24 as shall be determined by the Secretary of the Treasury.

25 The Secretary of the Treasury is authorized and directed
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1 to purchase any obligations of the Secretary issued under

2 this section, and for such purposes may use as a public

3 debt transaction the proceeds from the sale of any securi4 ties issued under chapter 31 of title 31, United States

5 Code, and the purposes for which such securities may be

6 issued under such chapter are extended to include the pur7 chases of the Secretary’s obligations hereunder.

8 SEC. 605. TRAINING AND INFORMATION.

9 The Secretary, in cooperation with eligible public en10 tities, shall carry out training and information activities

11 with respect to the guarantee program under this title.

12 SEC. 606. LIMITATIONS ON AMOUNT OF GUARANTEES.

13 (a) AGGREGATE FISCAL YEAR LIMITATION.—Not14 withstanding any other provision of law and subject only

15 to the absence of qualified applicants or proposed activities

16 and to the authority provided in this title, to the extent

17 approved or provided in appropriation Acts, the Secretary

18 shall enter into commitments to guarantee notes and obli19 gations under this title with an aggregate principal

20 amount of $400,000,000 for each of fiscal years 1997,

21 1998, 1999, 2000, and 2001.

22 (b) AUTHORIZATION OF APPROPRIATIONS FOR CRED23 IT SUBSIDY.—There is authorized to be appropriated to

24 cover the costs (as such term is defined in section 502

25 of the Congressional Budget Act of 1974) of guarantees
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1 under this title, $40,000,000 for each of fiscal years 1997,

2 1998, 1999, 2000, and 2001.

3 (c) AGGREGATE OUTSTANDING LIMITATION.—The

4 total amount of outstanding obligations guaranteed on a

5 cumulative basis by the Secretary pursuant to this title

6 shall not at any time exceed $2,000,000,000 or such high7 er amount as may be authorized to be appropriated for

8 this title for any fiscal year.

9 (d) FISCAL YEAR LIMITATIONS ON TRIBES.—The

10 Secretary shall monitor the use of guarantees under this

11 title by Indian tribes. If the Secretary finds that 50 per12 cent of the aggregate guarantee authority under sub13 section (c) has been committed, the Secretary may—

14 (1) impose limitations on the amount of guar15 antees any one Indian tribe may receive in any fiscal

16 year of $50,000,000; or

17 (2) request the enactment of legislation increas18 ing the aggregate limitation on guarantees under

19 this title.

20 SEC. 607. EFFECTIVE DATE.

21 This title shall take effect upon the enactment of this

22 Act.
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1 TITLE VII—OTHER HOUSING AS2 SISTANCE FOR NATIVE AMER3 ICANS

4 SEC. 701. LOAN GUARANTEES FOR INDIAN HOUSING.

5 (a) LIMITATION ON OUTSTANDING AGGREGATE

6 PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the Hous7 ing and Community Development Act of 1992 (12 U.S.C.

8 1515z–13a(i)(5)(C)) is amended by striking ‘‘1993’’ and

9 all that follows through ‘‘such year’’ and inserting ‘‘1997,

10 1998, 1999, 2000, and 2001 with an aggregate outstand11 ing principal amount note exceeding $400,000,000 for

12 each such fiscal year’’.

13 (b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR14 ANTEE FUND.—Section 184(i)(7) of the Housing and

15 Community Development Act of 1992 is amended by strik16 ing ‘‘such sums’’ and all that follows through ‘‘1994’’ and

17 inserting ‘‘$30,000,000 for each of fiscal years 1997,

18 1998, 1999, 2000, and 2001’’.

19 (c) AVAILABILITY OF AMOUNTS.—

20 (1) REQUIREMENT OF APPROPRIATIONS.—Sec21 tion 184(i)(5) of the Housing and Community De22 velopment Act of 1992 is amended by striking sub23 paragraph (A) and inserting the following new sub24 paragraph:
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1 ‘‘(A) REQUIREMENT OF APPROPRIA2 TIONS.—The authority of the Secretary to enter

3 into commitments to guarantee loans under this

4 section shall be effective for any fiscal year to

5 the extent or in such amounts as are or have

6 been provided in appropriations Acts, without

7 regard to the fiscal year for which such

8 amounts were appropriated.’’.

9 (2) COSTS.—Section 184(i)(5)(B) of the Hous10 ing and Community Development Act of 1992 is

11 amended by adding at the end the following new

12 sentence: ‘‘Any amounts appropriated pursuant to

13 this subparagraph shall remain available until ex14 pended.’’.

15 (d) LHMP REQUIREMENT.—Section 184(b)(2) of

16 the Housing and Community Development Act of 1992

17 is amended by inserting before the period at the end the

18 following: ‘‘that is under the jurisdiction of an Indian tribe

19 for which a local housing management plan has been sub20 mitted and approved pursuant to sections 102 and 103

21 of the Native American Housing Assistance and Self-De22 termination Act of 1996 that provides for the use of loan

23 guarantees under this section to provide affordable home24 ownership housing in such areas’’.
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1 SEC. 702. 40-YEAR LEASEHOLD INTEREST IN TRUST OR RE2 STRICTED LANDS FOR HOUSING PURPOSES.

3 (a) AUTHORITY TO LEASE.—Notwithstanding any

4 other provision of law, any restricted Indian lands, wheth5 er tribally or individually owned, may be leased by the In6 dian owners, with the approval of the Secretary of the In7 terior, for residential purposes.

8 (b) TERM.—Each lease pursuant to subsection (a)

9 shall be for a term not exceeding 40 years.

10 (c) RENEWAL.—A lease pursuant to subsection (a)

11 may, with the consent of both parties to the lease, include

12 provisions authorizing renewal of the lease for one addi13 tional term not exceeding 40 years.

14 (d) OTHER CONDITIONS.—Each lease pursuant to

15 subsection (a) and each renewal of such a lease shall be

16 made under such terms and regulations as may be pre17 scribed by the Secretary of the Interior.

18 (e) RULE OF CONSTRUCTION.—This section may not

19 be construed to repeal, limit, or affect any authority to

20 lease any restricted Indian lands that—

21 (1) is conferred by or pursuant to any other

22 provision of law; or

23 (2) provides for leases for any period exceeding

24 40 years.
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1 SEC. 703. NATIONAL AMERICAN INDIAN HOUSING COUNCIL.

2 There is authorized to be appropriated for assistance

3 for the National American Indian Housing Council for

4 providing training and technical assistance to Indian hous5 ing authorities $2,000,000, for each of fiscal years 1997,

6 1998, 1999, 2000, and 2001.

7 SEC. 704. EFFECTIVE DATE.

8 This title and the amendments made by this title

9 shall take effect upon the enactment of this Act.

Æ