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[House Report 106-553]
[From the U.S. Government Publishing Office]

                                                                       
106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-553

======================================================================

 
      AMERICAN HOMEOWNERSHIP AND ECONOMIC OPPORTUNITY ACT OF 2000

                                _______
                                

 March 29, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Leach, from the Committee on Banking and Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 1776]

    The Committee on Banking and Financial Services, to whom 
was referred the bill (H.R. 1776) to expand homeownership in 
the United States, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``American 
Homeownership and Economic Opportunity Act of 2000''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purpose.

         TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

Sec. 101. Short title.
Sec. 102. Housing impact analysis.
Sec. 103. Grants for regulatory barrier removal strategies.
Sec. 104. Eligibility for community development block grants.
Sec. 105. Regulatory barriers clearinghouse.

 TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES

Sec. 201. Extension of loan term for manufactured home lots.
Sec. 202. Downpayment simplification.
Sec. 203. Reduced downpayment requirements for loans for teachers and 
uniformed municipal employees.
Sec. 204. Preventing fraud in rehabilitation loan program.
Sec. 205. Neighborhood teacher program.
Sec. 206. Community development financial institution risk-sharing 
demonstration.
Sec. 207. Hybrid ARMs.
Sec. 208. Home equity conversion mortgages.
Sec. 209. Law enforcement officer homeownership pilot program.
Sec. 210. Study of mandatory inspection requirement under single family 
housing mortgage insurance program.
Sec. 211. Report on title I home improvement loan program.

               TITLE III--SECTION 8 HOMEOWNERSHIP OPTION

Sec. 301. Downpayment assistance.
Sec. 302. Pilot program for homeownership assistance for disabled 
families.
Sec. 303. Funding for pilot programs.

              TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS

Sec. 401. Reauthorization.
Sec. 402. Prohibition of set-asides.
Sec. 403. Public services cap.
Sec. 404. Homeownership for municipal employees.
Sec. 405. Technical amendment relating to brownfields.
Sec. 406. Income eligibility.
Sec. 407. Housing opportunities for persons with AIDS.

             TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

Sec. 501. Reauthorization.
Sec. 502. Eligibility of limited equity cooperatives and mutual housing 
associations.
Sec. 503. Administrative costs.
Sec. 504. Leveraging affordable housing investment through local loan 
pools.
Sec. 505. Homeownership for municipal employees.
Sec. 506. Use of section 8 assistance by ``grand-families'' to rent 
dwelling units in assisted projects.
Sec. 507. Loan guarantees.
Sec. 508. Downpayment assistance for 2- and 3-family residences.

               TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES

Sec. 601. Reauthorization of Neighborhood Reinvestment Corporation.
Sec. 602. Homeownership zones.
Sec. 603. Lease-to-own.
Sec. 604. Local capacity building.
Sec. 605. Consolidated application and planning requirement and super-
NOFA.
Sec. 606. Assistance for self-help housing providers.
Sec. 607. Housing counseling organizations.
Sec. 608. Community lead information centers and lead-safe housing.

            TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP

Sec. 701. Lands Title Report Commission.
Sec. 702. Loan guarantees.
Sec. 703. Native American housing assistance.

   TITLE VIII--TRANSFER OF HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND 
                        NONPROFIT ORGANIZATIONS

Sec. 801. Transfer of unoccupied and substandard HUD-held housing to 
local governments and community development corporations.
Sec. 802. Transfer of HUD assets in revitalization areas.

   TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

Sec. 901. Short title.
Sec. 902. Changes in amortization schedule.
Sec. 903. Deletion of ambiguous references to residential mortgages.
Sec. 904. Cancellation rights after cancellation date.
Sec. 905. Clarification of cancellation and termination issues and 
lender paid mortgage insurance disclosure requirements.
Sec. 906. Definitions.

                  TITLE X--RURAL HOUSING HOMEOWNERSHIP

Sec. 1001. Promissory note requirement under housing repair loan 
program.
Sec. 1002. Limited partnership eligibility for farm labor housing 
loans.
Sec. 1003. Project accounting records and practices.
Sec. 1004. Definition of rural area.
Sec. 1005. Operating assistance for migrant farmworkers projects.
Sec. 1006. Multifamily rental housing loan guarantee program.
Sec. 1007. Enforcement provisions.
Sec. 1008. Amendments to title 18 of United States Code.

               TITLE XI--MANUFACTURED HOUSING IMPROVEMENT

Sec. 1101. Short title and references.
Sec. 1102. Findings and purposes.
Sec. 1103. Definitions.
Sec. 1104. Federal manufactured home construction and safety standards.
Sec. 1105. Abolishment of National Manufactured Home Advisory Council; 
manufactured home installation.
Sec. 1106. Public information.
Sec. 1107. Research, testing, development, and training.
Sec. 1108. Fees.
Sec. 1109. Dispute resolution.
Sec. 1110. Elimination of annual report requirement.
Sec. 1111. Effective date.
Sec. 1112. Savings provision.

SEC. 2. FINDINGS AND PURPOSE.

  (a) Findings.--The Congress finds that--
          (1) the priorities of our Nation should include expanding 
        homeownership opportunities by providing access to affordable 
        housing that is safe, clean, and healthy;
          (2) our Nation has an abundance of conventional capital 
        sources available for homeownership financing;
          (3) experience with local homeownership programs has shown 
        that if flexible capital sources are available, communities 
        possess ample will and creativity to provide opportunities 
        uniquely designed to assist their citizens in realizing the 
        American dream of homeownership; and
          (4) each consumer should be afforded every reasonable 
        opportunity to access mortgage credit, to obtain the lowest 
        cost mortgages for which the consumer can qualify, to know the 
        true cost of the mortgage, to be free of regulatory burdens, 
        and to know what factors underlie a lender's decision regarding 
        the consumer's mortgage.
  (b) Purpose.--It is the purpose of this Act--
          (1) to encourage and facilitate homeownership by families in 
        the United States who are not otherwise able to afford 
        homeownership; and
          (2) to expand homeownership through policies that--
                  (A) promote the ability of the private sector to 
                produce affordable housing without excessive government 
                regulation;
                  (B) encourage tax incentives, such as the mortgage 
                interest deduction, at all levels of government; and
                  (C) facilitate the availability of flexible capital 
                for homeownership opportunities and provide local 
                governments with increased flexibility under existing 
                Federal programs to facilitate homeownership.

         TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

SEC. 101. SHORT TITLE.

  This title may be cited as the ``Housing Affordability Barrier 
Removal Act of 2000''.

SEC. 102. HOUSING IMPACT ANALYSIS.

  (a) Applicability.--Except as provided in subsection (b), the 
requirements of this section shall apply with respect to--
          (1) any proposed rule, unless the agency promulgating the 
        rule--
                  (A) has certified that the proposed rule will not, if 
                given force or effect as a final rule, have a 
                significant deleterious impact on housing 
                affordability; and
                  (B) has caused such certification to be published in 
                the Federal Register at the time of publication of 
                general notice of proposed rulemaking for the rule, 
                together with a statement providing the factual basis 
                for the certification; and
          (2) any final rule, unless the agency promulgating the rule--
                  (A) has certified that the rule will not, if given 
                force or effect, have a significant deleterious impact 
                on housing affordability; and
                  (B) has caused such certification to be published in 
                the Federal Register at the time of publication of the 
                final rule, together with a statement providing the 
                factual basis for the certification.
Any agency making a certification under this subsection shall provide a 
copy of such certification and the statement providing the factual 
basis for the certification to the Secretary of Housing and Urban 
Development.
  (b) Exception for Certain Banking Rules.--The requirements of this 
section shall not apply to any proposed or final rule relating to--
          (1) the operations, safety, or soundness of--
                  (A) federally insured depository institutions or any 
                affiliate of such an institution (as such term is 
                defined in section 2(k) of the Bank Holding Company Act 
                of 1956 (12 U.S.C. 1841(k));
                  (B) credit unions;
                  (C) the Federal home loan banks;
                  (D) the enterprises (as such term is defined in 
                section 1303 of the Housing and Community Development 
                Act of 1992 (12 U.S.C. 4502);
                  (E) a Farm Credit System institution; or
                  (F) foreign banks or their branches, agencies, 
                commercial lending companies, or representative offices 
                that operate in the United States, or any affiliate of 
                a foreign bank (as such terms are defined in section 1 
                of the International Banking Act of 1978 (12 U.S.C. 
                3101); or
          (2) the payments system or the protection of deposit 
        insurance funds or the Farm Credit Insurance Fund.
  (c) Statement of Proposed Rulemaking.--Whenever an agency publishes 
general notice of proposed rulemaking for any proposed rule, unless the 
agency has made a certification under subsection (a), the agency 
shall--
          (1) in the notice of proposed rulemaking--
                  (A) state with particularity the text of the proposed 
                rule; and
                  (B) request any interested persons to submit to the 
                agency any written analyses, data, views, and 
                arguments, and any specific alternatives to the 
                proposed rule that--
                          (i) accomplish the stated objectives of the 
                        applicable statutes, in a manner comparable to 
                        the proposed rule;
                          (ii) result in costs to the Federal 
                        Government equal to or less than the costs 
                        resulting from the proposed rule; and
                          (iii) result in housing affordability greater 
                        than the housing affordability resulting from 
                        the proposed rule;
          (2) provide an opportunity for interested persons to take the 
        actions specified under paragraph (1)(B) before promulgation of 
        the final rule; and
          (3) prepare and make available for public comment an initial 
        housing impact analysis in accordance with the requirements of 
        subsection (d).
  (d) Initial Housing Impact Analysis.--
          (1) Requirements.--Each initial housing impact analysis shall 
        describe the impact of the proposed rule on housing 
        affordability. The initial housing impact analysis or a summary 
        shall be published in the Federal Register at the same time as, 
        and together with, the publication of general notice of 
        proposed rulemaking for the rule. The agency shall transmit a 
        copy of the initial housing impact analysis to the Secretary of 
        Housing and Urban Development.
          (2) Monthly hud listing.--On a monthly basis, the Secretary 
        of Housing and Urban Development shall cause to be published in 
        the Federal Register, and shall make available through a World 
        Wide Web site of the Department, a listing of all proposed 
        rules for which an initial housing impact analysis was prepared 
        during the preceding month.
          (3) Contents.--Each initial housing impact analysis required 
        under this subsection shall contain--
                  (A) a description of the reasons why action by the 
                agency is being considered;
                  (B) a succinct statement of the objectives of, and 
                legal basis for, the proposed rule;
                  (C) a description of and, where feasible, an estimate 
                of the extent to which the proposed rule would increase 
                the cost or reduce the supply of housing or land for 
                residential development; and
                  (D) an identification, to the extent practicable, of 
                all relevant Federal rules which may duplicate, 
                overlap, or conflict with the proposed rule.
  (e) Proposal of Less Deleterious Alternative Rule.--
          (1) Analysis.--The agency publishing a general notice of 
        proposed rulemaking shall review any specific analyses and 
        alternatives to the proposed rule which have been submitted to 
        the agency pursuant to subsection (c)(2) to determine whether 
        any alternative to the proposed rule--
                  (A) accomplishes the stated objectives of the 
                applicable statutes, in a manner comparable to the 
                proposed rule;
                  (B) results in costs to the Federal Government equal 
                to or less than the costs resulting from the proposed 
                rule; and
                  (C) results in housing affordability greater than the 
                housing affordability resulting from the proposed rule.
          (2) New notice of proposed rulemaking.--If the agency 
        determines that an alternative to the proposed rule meets the 
        requirements under subparagraphs (A) through (C) of paragraph 
        (1), unless the agency provides an explanation on the record 
        for the proposed rule as to why the alternative should not be 
        implemented, the agency shall incorporate the alternative into 
        the final rule or, at the agency's discretion, issue a new 
        proposed rule which incorporates the alternative.
  (f) Final Housing Impact Analysis.--
          (1) Requirement.--Whenever an agency promulgates a final rule 
        after publication of a general notice of proposed rulemaking, 
        unless the agency has made the certification under subsection 
        (a), the agency shall prepare a final housing impact analysis.
          (2) Contents.--Each final housing impact analysis shall 
        contain--
                  (A) a succinct statement of the need for, and 
                objectives of, the rule;
                  (B) a summary of the significant issues raised during 
                the public comment period in response to the initial 
                housing impact analysis, a summary of the assessment of 
                the agency of such issues, and a statement of any 
                changes made in the proposed rule as a result of such 
                comments; and
                  (C) a description of and an estimate of the extent to 
                which the rule will impact housing affordability or an 
                explanation of why no such estimate is available.
          (3) Availability.--The agency shall make copies of the final 
        housing impact analysis available to members of the public and 
        shall publish in the Federal Register such analysis or a 
        summary thereof.
  (g) Avoidance of Duplicative or Unnecessary Analyses.--
          (1) Duplication.--Any Federal agency may perform the analyses 
        required by subsections (d) and (f) in conjunction with or as a 
        part of any other agenda or analysis required by any other law, 
        executive order, directive, or rule if such other analysis 
        satisfies the provisions of such subsections.
          (2) Joinder.--In order to avoid duplicative action, an agency 
        may consider a series of closely related rules as one rule for 
        the purposes of subsections (d) and (f).
  (h) Preparation of Analyses.--In complying with the provisions of 
subsections (d) and (f), an agency may provide either a quantifiable or 
numerical description of the effects of a proposed rule or alternatives 
to the proposed rule, or more general descriptive statements if 
quantification is not practicable or reliable.
  (i) Effect on Other Law.--The requirements of subsections (d) and (f) 
do not alter in any manner standards otherwise applicable by law to 
agency action.
  (j) Procedure for Waiver or Delay of Completion.--
          (1) Initial housing impact analysis.--An agency head may 
        waive or delay the completion of some or all of the 
        requirements of subsection (d) by publishing in the Federal 
        Register, not later than the date of publication of the final 
        rule, a written finding, with reasons therefor, that the final 
        rule is being promulgated in response to an emergency that 
        makes compliance or timely compliance with the provisions of 
        subsection (a) impracticable.
          (2) Final housing impact analysis.--An agency head may not 
        waive the requirements of subsection (f). An agency head may 
        delay the completion of the requirements of subsection (f) for 
        a period of not more than 180 days after the date of 
        publication in the Federal Register of a final rule by 
        publishing in the Federal Register, not later than such date of 
        publication, a written finding, with reasons therefor, that the 
        final rule is being promulgated in response to an emergency 
        that makes timely compliance with the provisions of subsection 
        (f) impracticable. If the agency has not prepared a final 
        housing impact analysis pursuant to subsection (f) within 180 
        days from the date of publication of the final rule, such rule 
        shall lapse and have no force or effect. Such rule shall not be 
        repromulgated until a final housing impact analysis has been 
        completed by the agency.
  (k) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Housing affordability.--The term ``housing 
        affordability'' means the quantity of housing that is 
        affordable to families having incomes that do not exceed 150 
        percent of the median income of families in the area in which 
        the housing is located, with adjustments for smaller and larger 
        families. For purposes of this paragraph, area, median family 
        income for an area, and adjustments for family size shall be 
        determined in the same manner as such factors are determined 
        for purposes of section 3(b)(2) of the United States Housing 
        Act of 1937.
          (2) Agency.--The term ``agency'' means each authority of the 
        Government of the United States, whether or not it is within or 
        subject to review by another agency, but does not include--
                  (A) the Congress;
                  (B) the courts of the United States;
                  (C) the governments of the territories or possessions 
                of the United States;
                  (D) the government of the District of Columbia;
                  (E) agencies composed of representatives of the 
                parties or of representatives of organizations of the 
                parties to the disputes determined by them;
                  (F) courts-martial and military commissions;
                  (G) military authority exercised in the field in time 
                of war or in occupied territory; or
                  (H) functions conferred by--
                          (i) sections 1738, 1739, 1743, and 1744 of 
                        title 12, United States Code;
                          (ii) chapter 2 of title 41, United States 
                        Code;
                          (iii) subchapter II of chapter 471 of title 
                        49, United States Code; or
                          (iv) sections 1884, 1891-1902, and former 
                        section 1641(b)(2), of title 50, appendix, 
                        United States Code.
          (3) Families.--The term ``families'' has the meaning given 
        such term in section 3 of the United States Housing Act of 
        1937.
          (4) Rule.--The term ``rule'' means any rule for which the 
        agency publishes a general notice of proposed rulemaking 
        pursuant to section 553(b) of title 5, United States Code, or 
        any other law, including any rule of general applicability 
        governing grants by an agency to State and local governments 
        for which the agency provides an opportunity for notice and 
        public comment; except that such term does not include a rule 
        of particular applicability relating to rates, wages, corporate 
        or financial structures or reorganizations thereof, prices, 
        facilities, appliances, services, or allowances therefor or to 
        valuations, costs or accounting, or practices relating to such 
        rates, wages, structures, prices, appliances, services, or 
        allowances.
          (5) Significant.--The term ``significant'' means increasing 
        consumers' cost of housing by more than $100,000,000 per year.
  (l) Development.--Not later than 1 year after the date of the 
enactment of this title, the Secretary of Housing and Urban Development 
shall develop model initial and final housing impact analyses under 
this section and shall cause such model analyses to be published in the 
Federal Register. The model analyses shall define the primary elements 
of a housing impact analysis to instruct other agencies on how to carry 
out and develop the analyses required under subsections (a) and (d).
  (m) Judicial Review.--
          (1) Determination by agency.--Except as otherwise provided in 
        paragraph (2), any determination by an agency concerning the 
        applicability of any of the provisions of this title to any 
        action of the agency shall not be subject to judicial review.
          (2) Other actions by agency.--Any housing impact analysis 
        prepared under subsection (d) or (f) and the compliance or 
        noncompliance of the agency with the provisions of this title 
        shall not be subject to judicial review. When an action for 
        judicial review of a rule is instituted, any housing impact 
        analysis for such rule shall constitute part of the whole 
        record of agency action in connection with the review.
          (3) Exception.--Nothing in this subsection bars judicial 
        review of any other impact statement or similar analysis 
        required by any other law if judicial review of such statement 
        or analysis is otherwise provided by law.

SEC. 103. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES.

  (a) Authorization of Appropriations.--Subsection (a) of section 1204 
of the Housing and Community Development Act of 1992 (42 U.S.C. 
12705c(a)) is amended to read as follows:
  ``(a) Funding.--There is authorized to be appropriated for grants 
under subsections (b) and (c) $15,000,000 for fiscal year 2001 and such 
sums as may be necessary for each of fiscal years 2002, 2003, 2004, and 
2005.''.
  (b) Consolidation of State and Local Grants.--Subsection (b) of 
section 1204 of the Housing and Community Development Act of 1992 (42 
U.S.C. 12705c(b)) is amended--
          (1) in the subsection heading, by striking ``State Grants'' 
        and inserting ``Grant Authority'';
          (2) in the matter preceding paragraph (1), by inserting after 
        ``States'' the following: ``and units of general local 
        government (including consortia of such governments)'';
          (3) in paragraph (3), by striking ``a State program to reduce 
        State and local'' and inserting ``State, local, or regional 
        programs to reduce'';
          (4) in paragraph (4), by inserting ``or local'' after 
        ``State''; and
          (5) in paragraph (5), by striking ``State''.
  (c) Repeal of Local Grants Provision.--Section 1204 of the Housing 
and Community Development Act of 1992 (42 U.S.C. 12705c) is amended by 
striking subsection (c).
  (d) Application and Selection.--The last sentence of section 1204(e) 
of the Housing and Community Development Act of 1992 (42 U.S.C. 
12705c(e)) is amended--
          (1) by striking ``and for the selection of units of general 
        local government to receive grants under subsection (f)(2)''; 
        and
          (2) by inserting before the period at the end the following: 
        ``and such criteria shall require that grant amounts be used in 
        a manner consistent with the strategy contained in the 
        comprehensive housing affordability strategy for the 
        jurisdiction pursuant to section 105(b)(4) of the Cranston-
        Gonzalez National Affordable Housing Act''.
  (e) Selection of Grantees.--Subsection (f) of section 1204 of the 
Housing and Community Development Act of 1992 (42 U.S.C. 12705c(f)) is 
amended to read as follows:
  ``(f) Selection of Grantees.--To the extent amounts are made 
available to carry out this section, the Secretary shall provide grants 
on a competitive basis to eligible grantees based on the proposed uses 
of such amounts, as provided in applications under subsection (e).''.
  (f) Technical Amendments.--Section 107(a)(1) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307(a)(1)) is amended--
          (1) in subparagraph (G), by inserting ``and'' after the 
        semicolon at the end;
          (2) by striking subparagraph (H); and
          (3) by redesignating subparagraph (I) as subparagraph (H).

SEC. 104. ELIGIBILITY FOR COMMUNITY DEVELOPMENT BLOCK GRANTS.

  (a) In General.--Section 104(c)(1) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5304(c)(1)) is amended by inserting 
before the comma the following: ``, which shall include making a good 
faith effort to carry out the strategy established under section 
105(b)(4) of such Act by the unit of general local government to remove 
barriers to affordable housing''.
  (b) Rule of Construction.--The amendment made by subsection (a) may 
not be construed to create any new private right of action.

SEC. 105. REGULATORY BARRIERS CLEARINGHOUSE.

  Section 1205 of the Housing and Community Development Act of 1992 (42 
U.S.C. 12705d) is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``receive, collect, process, and assemble'' 
                and inserting ``serve as a national repository to 
                receive, collect, process, assemble, and disseminate'';
                  (B) in paragraph (1)--
                          (i) by striking ``, including'' and inserting 
                        ``(including''; and
                          (ii) by inserting before the semicolon at the 
                        end the following: ``), and the prevalence and 
                        effects on affordable housing of such laws, 
                        regulations, and policies'';
                  (C) in paragraph (2), by inserting before the 
                semicolon the following: ``, including particularly 
                innovative or successful activities, strategies, and 
                plans''; and
                  (D) in paragraph (3), by inserting before the period 
                at the end the following: ``, including particularly 
                innovative or successful strategies, activities, and 
                plans'';
          (2) in subsection (b)--
                  (A) in paragraph (1), by striking ``and'' at the end;
                  (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following new paragraph:
          ``(3) by making available through a World Wide Web site of 
        the Department, by electronic mail, or otherwise, provide to 
        each housing agency of a unit of general local government that 
        serves an area having a population greater than 100,000, an 
        index of all State and local strategies and plans submitted 
        under subsection (a) to the clearinghouse, which--
                  ``(A) shall describe the types of barriers to 
                affordable housing that the strategy or plan was 
                designed to ameliorate or remove; and
                  ``(B) shall, not later than 30 days after submission 
                to the clearinghouse of any new strategy or plan, be 
                updated to include the new strategy or plan 
                submitted.''; and
          (3) by adding at the end the following new subsections:
  ``(c) Organization.--The clearinghouse under this section shall be 
established within the Office of Policy Development of the Department 
of Housing and Urban Development and shall be under the direction of 
the Assistant Secretary for Policy Development and Research.
  ``(d) Timing.--The clearinghouse under this section (as amended by 
section 105 of the Housing Affordability Barrier Removal Act of 2000) 
shall be established and commence carrying out the functions of the 
clearinghouse under this section not later than 1 year after the date 
of the enactment of such Act. The Secretary of Housing and Urban 
Development may comply with the requirements under this section by 
reestablishing the clearinghouse that was originally established to 
comply with this section and updating and improving such clearinghouse 
to the extent necessary to comply with the requirements of this section 
as in effect pursuant to the enactment of such Act.''.

 TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES

SEC. 201. EXTENSION OF LOAN TERM FOR MANUFACTURED HOME LOTS.

  Section 2(b)(3)(E) of the National Housing Act (12 U.S.C. 
1703(b)(3)(E)) is amended by striking ``fifteen'' and inserting 
``twenty''.

SEC. 202. DOWNPAYMENT SIMPLIFICATION.

  (a) In General.--Section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)) is amended--
          (1) in paragraph (2)--
                  (A) in subparagraph (A), by realigning the matter 
                that precedes clause (ii) an additional 2 ems from the 
                left margin;
                  (B) in the matter that follows subparagraph 
                (B)(iii)--
                          (i) by striking the 6th sentence (relating to 
                        the increases for costs of solar energy 
                        systems) and all that follows through the end 
                        of the penultimate undesignated paragraph; and
                          (ii) by striking the 2d and 3rd sentences of 
                        such matter; and
                  (C) by striking subparagraph (B);
          (2) by transferring and inserting subparagraph (A) of 
        paragraph (10) after subparagraph (A) of paragraph (2) and 
        amending such subparagraph by striking all of the matter that 
        precedes clause (i) and inserting the following:
                  ``(B) not to exceed an amount equal to the sum of--
                '';
          (3) by transferring and inserting the last undesignated 
        paragraph of paragraph (2) (relating to disclosure notice) 
        after subsection (e), realigning such transferred paragraph so 
        as to be flush with the left margin, and amending such 
        transferred paragraph by inserting ``(f) Disclosure of Other 
        Mortgage Products.--'' before ``In conjunction'';
          (4) by transferring and inserting the sentence that 
        constitutes the text of paragraph (10)(B) after the period at 
        the end of the first sentence that follows subparagraph (B) 
        (relating to the definition of ``area''); and
          (5) by striking paragraph (10) (as amended by the preceding 
        provisions this section).
  (b) Conforming Amendments.--Section 245 of the National Housing Act 
(12 U.S.C. 1715z-10) is amended--
          (1) in subsection (a), by striking ``, or if the mortgagor'' 
        and all that follows through ``case of veterans''; and
          (2) in subsection (b)(3), by striking ``, or, if the'' and 
        all that follows through ``for veterans,''.

SEC. 203. REDUCED DOWNPAYMENT REQUIREMENTS FOR LOANS FOR TEACHERS AND 
                    UNIFORMED MUNICIPAL EMPLOYEES.

  (a) In General.--Section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)), as amended by section 202 of this Act, is further 
amended by adding at the end the following new paragraph:
          ``(10) Reduced downpayment requirements for teachers and 
        uniformed municipal employees.--
                  ``(A) In general.--Notwithstanding paragraph (2), in 
                the case of a mortgage described in subparagraph (B)--
                          ``(i) the mortgage shall involve a principal 
                        obligation in an amount that does not exceed 
                        the sum of 99 percent of the appraised value of 
                        the property and the total amount of initial 
                        service charges, appraisal, inspection, and 
                        other fees (as the Secretary shall approve) 
                        paid in connection with the mortgage;
                          ``(ii) no other provision of this subsection 
                        limiting the principal obligation of the 
                        mortgage based upon a percentage of the 
                        appraised value of the property subject to the 
                        mortgage shall apply; and
                          ``(iii) the matter in paragraph (9) that 
                        precedes the first proviso shall not apply and 
                        the mortgage shall be executed by a mortgagor 
                        who shall have paid on account of the property 
                        at least 1 percent of the cost of acquisition 
                        (as determined by the Secretary) in cash or its 
                        equivalent.
                  ``(B) Mortgages covered.--A mortgage described in 
                this subparagraph is a mortgage--
                          ``(i) under which the mortgagor is an 
                        individual who--
                                  ``(I) is employed on a full-time 
                                basis as (aa) a teacher or 
                                administrator in a public or private 
                                school that provides elementary or 
                                secondary education, as determined 
                                under State law, except that secondary 
                                education shall not include any 
                                education beyond grade 12, or (bb) a 
                                public safety officer (as such term is 
                                defined in section 1204 of the Omnibus 
                                Crime Control and Safe Streets Act of 
                                1968 (42 U.S.C. 3796b), except that 
                                such term shall not include any officer 
                                serving a public agency of the Federal 
                                Government); and
                                  ``(II) has not, during the 12-month 
                                period ending upon the insurance of the 
                                mortgage, had any present ownership 
                                interest in a principal residence 
                                located in the jurisdiction described 
                                in clause (ii); and
                          ``(ii) made for a property that is located 
                        within the jurisdiction of--
                                  ``(I) in the case of a mortgage of a 
                                mortgagor described in clause 
                                (i)(I)(aa), the local educational 
                                agency (as such term is defined in 
                                section 14101 of the Elementary and 
                                Secondary Education Act of 1965 (20 
                                U.S.C. 8801)) for the school in which 
                                the mortgagor is employed (or, in the 
                                case of a mortgagor employed in a 
                                private school, the local educational 
                                agency having jurisdiction for the area 
                                in which the private school is 
                                located); or
                                  ``(II) in the case of a mortgage of a 
                                mortgagor described in clause 
                                (i)(I)(bb), the jurisdiction served by 
                                the public law enforcement agency, 
                                firefighting agency, or rescue or 
                                ambulance agency that employs the 
                                mortgagor.''.
  (b) Deferral and Reduction of Up-Front Premium.--Section 203(c) of 
the National Housing Act (12 U.S.C. 1709(c)(2)) is amended--
          (1) in paragraph (2), in the matter preceding subparagraph 
        (A), by striking ``Notwithstanding'' and inserting ``Except as 
        provided in paragraph (3) and notwithstanding''; and
          (2) by adding at the end the following new paragraph:
  ``(3) Deferral and reduction of up-front premium.--In the case of any 
mortgage described in subsection (b)(10)(B):
          ``(A) Paragraph (2)(A) of this subsection (relating to 
        collection of up-front premium payments) shall not apply.
          ``(B) If, at any time during the 5-year period beginning on 
        the date of the insurance of the mortgage, the mortgagor ceases 
        to be employed as described in subsection (b)(10)(B)(i)(I) or 
        pays the principal obligation of the mortgage in full, the 
        Secretary shall at such time collect a single premium payment 
        in an amount equal to the amount of the single premium payment 
        that, but for this paragraph, would have been required under 
        paragraph (2)(A) of this subsection with respect to the 
        mortgage, as reduced by 20 percent of such amount for each 
        successive 12-month period completed during such 5-year period 
        before such cessation or prepayment occurs.''.

SEC. 204. PREVENTING FRAUD IN REHABILITATION LOAN PROGRAM.

  (a) In General.--Section 203(k) of the National Housing Act (12 
U.S.C. 1709(k)) is amended by adding at the end the following new 
paragraph:
  ``(7) Prevention of fraud.--To prevent fraud under the program for 
loan insurance authorized under this subsection, the Secretary shall, 
by regulation, take the following actions:
          ``(A) Prohibition of identity of interest.--The Secretary 
        shall prohibit any identity-of-interest, as such term is 
        defined by the Secretary, between any of the following parties 
        involved in a loan insured under this subsection: the borrower 
        (including, in the case of a borrower that is a nonprofit 
        organization, any member of the board of directors or the staff 
        of the organization), the lender, any consultant, any real 
        estate agent, any property inspector, and any appraiser. 
        Nothing in this subparagraph may be construed to prohibit or 
        restrict, or authorize the Secretary to prohibit or restrict, 
        the functioning of a affiliated business arrangement that 
        complies with the requirements under section 8(c)(4) of the 
        Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 
        2607(c)(4)).
          ``(B) Nonprofit participation.--The Secretary shall establish 
        minimum standards for a nonprofit organization to participate 
        in the program, which shall include--
                  ``(i) requiring such an organization to disclose to 
                the Secretary its taxpayer identification number and 
                evidence sufficient to indicate that the organization 
                is an organization described in section 501(c) of the 
                Internal Revenue Code of 1986 that is exempt from 
                taxation under subtitle A of such Code;
                  ``(ii) requiring that the board of directors of such 
                an organization be comprised only of individuals who do 
                not receive any compensation or other thing of value by 
                reason of their service on the board and who have no 
                personal financial interest in the rehabilitation 
                project of the organization that is financed with the 
                loan insured under this subsection;
                  ``(iii) requiring such an organization to submit to 
                the Secretary financial statements of the organization 
                for the most recent 2 years, which have been prepared 
                by a party that is unaffiliated with the organization 
                and is qualified to prepare financial statements;
                  ``(iv) limiting to 10 the number of loans that are 
                insured under this subsection, made to any single such 
                organization, and, at any one time, have an outstanding 
                balance of principal or interest, except that the 
                Secretary may increase such numerical limitation on a 
                case-by-case basis for good cause shown; and
                  ``(v) requiring such an organization to have been 
                certified by the Secretary as meeting the requirements 
                under this subsection and otherwise eligible to 
                participate in the program not more than 2 years before 
                obtaining a loan insured under this section.
          ``(C) Completion of work.--The Secretary shall prohibit any 
        lender making a loan insured under this subsection from 
        disbursing the final payment of loan proceeds unless the lender 
        has received affirmation, from the borrower under the loan, 
        both in writing and pursuant to an interview in person or over 
        the telephone, that the rehabilitation activities financed by 
        the loan have been satisfactorily completed.
          ``(D) Consultant standards.--The Secretary shall require that 
        any consultant, as such term is defined by the Secretary, who 
        is involved in a home inspection, site visit, or preparation of 
        bids with respect to any loan insured under this section shall 
        meet such standards established by the Secretary to ensure 
        accurate inspections and preparation of bids.
          ``(E) Contractor qualification.--The Secretary shall require, 
        in the case of any loan that is insured under this subsection 
        and involves rehabilitation with a cost of $25,000 or more, 
        that the contractor or other person performing or supervising 
        the rehabilitation activities financed by the loan shall--
                  ``(i) be certified by a nationally recognized 
                organization as meeting industry standards for quality 
                of workmanship, training, and continuing education, 
                including financial management;
                  ``(ii) be licensed to conduct such activities by the 
                State or unit of general local government in which the 
                rehabilitation activities are being completed; or
                  ``(iii) be bonded or provide such equivalent 
                protection, as the Secretary may require.''.
  (b) Report on Activity of Nonprofit Organizations Under Program.--Not 
later than 60 days after the date of the enactment of this Act, the 
Secretary of Housing and Urban Development shall submit a report to the 
Congress regarding the participation of nonprofit organizations under 
the rehabilitation loan program under section 203(k) of the National 
Housing Act (12 U.S.C. 1709(k)). The report shall--
          (1) determine and describe the extent of participation in the 
        program by such organizations;
          (2) identify and compare the default and claim rates for 
        loans made under the program to nonprofit organizations and to 
        owner-occupier participants;
          (3) analyze the impact, on such organizations and the 
        program, of prohibiting such organizations from participating 
        in the program; and
          (4) identify other opportunities for such organizations to 
        acquire financing or credit enhancement for rehabilitation 
        activities.
  (c) Regulations.--The Secretary of Housing and Urban Development 
shall issue final regulations and any other administrative orders or 
notices necessary to carry out the provisions of this section and the 
amendments made by this section not later than 120 days after the date 
of the enactment of this Act.

SEC. 205. NEIGHBORHOOD TEACHER PROGRAM.

  (a) Short Title.--This section may be cited as the ``Neighborhood 
Teachers Act''.
  (b) Congressional Findings.--The Congress finds that--
          (1) teachers are an integral part of our communities;
          (2) other than families, teachers are often the most 
        important mentors to children, providing them with the values 
        and skills for self-fulfillment in adult life; and
          (3) the Neighborhood Teachers Act recognizes the value 
        teachers bring to community and family life and is designed to 
        encourage and reward teachers that serve in our most needy 
        communities.
  (c) Discount and Downpayment Assistance for Teachers.--Section 204(h) 
of the National Housing Act (12 U.S.C. 1710(h)) is amended--
          (1) by redesignating paragraphs (7) through (10) as 
        paragraphs (8) through (11), respectively; and
          (2) by inserting after paragraph (6) the following new 
        paragraph:
          ``(7) 50 percent discount for teachers purchasing properties 
        that are eligible assets.--
                  ``(A) Discount.--A property that is an eligible asset 
                and is sold, during fiscal years 2000 through 2004, to 
                a teacher for use in accordance with subparagraph (B) 
                shall be sold at a price that is equal to 50 percent of 
                the appraised value of the eligible property (as 
                determined in accordance with paragraph (6)(B)). In the 
                case of a property eligible for both a discount under 
                this paragraph and a discount under paragraph (6), the 
                discount under paragraph (6) shall not apply.
                  ``(B) Primary residence.--An eligible property sold 
                pursuant to a discount under this paragraph shall be 
                used, for not less than the 3-year period beginning 
                upon such sale, as the primary residence of a teacher.
                  ``(C) Sale methods.--The Secretary may sell an 
                eligible property pursuant to a discount under this 
                paragraph--
                          ``(i) to a unit of general local government 
                        or nonprofit organization (pursuant to 
                        paragraph (4) or otherwise), for resale or 
                        transfer to a teacher; or
                          ``(ii) directly to a purchaser who is a 
                        teacher.
                  ``(D) Resale.--In the case of any purchase by a unit 
                of general local government or nonprofit organization 
                of an eligible property sold at a discounted price 
                under this paragraph, the sale agreement under 
                paragraph (8) shall--
                          ``(i) require the purchasing unit of general 
                        local government or nonprofit organization to 
                        provide the full benefit of the discount to the 
                        teacher obtaining the property; and
                          ``(ii) in the case of a purchase involving 
                        multiple eligible assets, any of which is such 
                        an eligible property, designate the specific 
                        eligible property or properties to be subject 
                        to the requirements of subparagraph (B).
                  ``(E) Mortgage downpayment assistance.--If a teacher 
                purchases an eligible property pursuant to a discounted 
                sale price under this paragraph and finances such 
                purchase through a mortgage insured under this title, 
                notwithstanding any provision of section 203 the 
                downpayment on such mortgage shall be $100.
                  ``(F) Prevention of undue profit.--The Secretary 
                shall issue regulations to prevent undue profit from 
                the resale of eligible properties in violation of the 
                requirement under subparagraph (B).
                  ``(G) Awareness program.--From funds made available 
                for salaries and expenses for the Office of Policy 
                Support of the Department of Housing and Urban 
                Development, each field office of the Department shall 
                make available to elementary schools and secondary 
                schools within the jurisdiction of the field office and 
                to the public--
                          ``(i) a list of eligible properties located 
                        within the jurisdiction of the field office 
                        that are available for purchase by teachers 
                        under this paragraph; and
                          ``(ii) other information designed to make 
                        such teachers and the public aware of the 
                        discount and downpayment assistance available 
                        under this paragraph.
                  ``(H) Definitions.--For the purposes of this 
                paragraph, the following definitions shall apply:
                          ``(i) The terms `elementary school' and 
                        `secondary school' have the meanings given such 
                        terms in section 14101 of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        8801), except that, for purposes of this 
                        paragraph, elementary education (as used in 
                        such section) shall include pre-Kindergarten 
                        education.
                          ``(ii) The term `eligible property' means an 
                        eligible asset described in paragraph (2)(A) of 
                        this subsection.
                          ``(iii) The term `teacher' means an 
                        individual who is employed on a full-time 
                        basis, in an elementary or secondary school, as 
                        a State-certified classroom teacher or 
                        administrator.''.
  (d) Conforming Amendments.--Section 204(h) of the National Housing 
Act (12 U.S.C. 1710(h)) is amended--
          (1) in paragraph (4)(B)(ii), by striking ``paragraph (7)'' 
        and inserting ``paragraph (8)'';
          (2) in paragraph (5)(B)(i), by striking ``paragraph (7)'' and 
        inserting ``paragraph (8)''; and
          (3) in paragraph (6)(A), by striking ``paragraph (8)'' and 
        inserting ``paragraph (9)''.
  (e) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement the amendments made by this section.

SEC. 206. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION RISK-SHARING 
                    DEMONSTRATION.

  Section 249 of the National Housing Act (12 U.S.C. 1715z-14) is 
amended--
          (1) by striking the section heading and inserting the 
        following:
                    ``risk-sharing demonstration'';
          (2) by striking ``reinsurance'' each place such term appears 
        and insert ``risk-sharing'';
          (3) in subsection (a)--
                  (A) in the first sentence, by striking ``private 
                mortgage insurers'' and inserting ``insured community 
                development financial institutions''; and
                  (B) in the second sentence--
                          (i) by striking ``two'' and inserting ``4''; 
                        and
                          (ii) by striking ``March 15, 1988'' and 
                        inserting ``the expiration of the 5-year period 
                        beginning on the date of the enactment of the 
                        American Homeownership and Economic Opportunity 
                        Act of 2000'';
          (4) in subsection (b)--
                  (A) by striking ``private mortgage insurance 
                companies'' each place such term appears and inserting 
                ``insured community development financial 
                institutions'';
                  (B) in the first sentence, by striking ``which have 
                been determined to be qualified insurers under section 
                302(b)(2)(C)'';
                  (C) by striking paragraph (1) and inserting the 
                following new paragraph:
          ``(1) assume the first loss on any mortgage insured pursuant 
        to section 203(b), 234, or 245 that covers a one- to four-
        family dwelling and is included in the program under this 
        section, up to the percentage of loss that is set forth in the 
        risk-sharing contract;''; and
                  (D) in paragraph (2)--
                          (i) by striking ``carry out (under 
                        appropriate delegation) such'' and inserting 
                        ``delegate underwriting,''; and
                          (ii) by striking ``function'' and inserting 
                        ``functions'';
          (5) in subsection (c)--
                  (A) in the first sentence--
                          (i) by striking ``of'' the first place it 
                        appears and insert ``for'';
                          (ii) by striking ``insurance reserves'' and 
                        inserting ``loss reserves''; and
                          (iii) by striking ``such insurance'' and 
                        inserting ``such reserves''; and
                  (B) in the second sentence, by striking ``private 
                mortgage insurance company'' and inserting ``insured 
                community development financial institution'';
          (6) in subsection (d), by striking ``private mortgage 
        insurance company'' and inserting ``insured community 
        development financial institution''; and
          (7) by adding at the end the following new subsection:
  ``(e) Insured Community Development Financial Institutions.--For 
purposes of this section, the term `insured community development 
financial institution' means a community development financial 
institution, as such term is defined in section 103 of Reigle Community 
Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702) 
that is an insured depository institution (as such term is defined in 
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or an 
insured credit union (as such term is defined in section 101 of the 
Federal Credit Union Act (12 U.S.C. 1752)).''.

SEC. 207. HYBRID ARMS.

  (a) In General.--Section 251 of the National Housing Act (12 U.S.C. 
1715z-16) is amended--
          (1) in subsection (a), by inserting ``In General.--'' after 
        ``(a)'';
          (2) by striking subsection (b) and inserting the following 
        new subsection:
  ``(b) Disclosure.--In the case of any loan application for a mortgage 
to be insured under any provision of this section, the Secretary shall 
require that the prospective mortgagee for the mortgage shall, at the 
time of loan application, make available to the prospective mortgagor a 
written explanation of the features of an adjustable rate mortgage 
consistent with the disclosure requirements applicable to variable rate 
mortgages secured by a principal dwelling under the Truth in Lending 
Act (15 U.S.C. 1601 et seq.).'';
          (3) in subsection (c), by inserting ``Limitation on Insurance 
        Authority.--'' after ``(c)''; and
          (4) by adding at the end the following new subsection:
  ``(d) Hybrid ARMs.--The Secretary may insure under this subsection a 
mortgage that--
          ``(1) has an effective rate of interest that shall be--
                  ``(A) fixed for a period of not less than the first 3 
                years of the mortgage term;
                  ``(B) initially adjusted by the mortgagee upon the 
                expiration of such period and annually thereafter; and
                  ``(C) in the case of the initial interest rate 
                adjustment, shall be subject to the limitation under 
                clause (2) of the last sentence of subsection (a) 
                (relating to prohibiting annual increases of more than 
                1 percent) only if the interest rate remains fixed for 
                5 or fewer years; and
          ``(2) otherwise meets the requirements for insurance under 
        subsection (a) that are not inconsistent with the requirements 
        under paragraph (1) of this subsection.''.
  (b) Implementation.--The Secretary of Housing and Urban Development 
may implement section 251(d) of the National Housing Act (12 U.S.C. 
1715z-16(d)), as added by subsection (a) of this section, in advance of 
rulemaking.

SEC. 208. HOME EQUITY CONVERSION MORTGAGES.

  (a) Insurance for Mortgages to Refinance Existing HECMs.--
          (1) In General.--Section 255 of the National Housing Act (12 
        U.S.C. 1715z-20) is amended--
                  (A) by redesignating subsection (k) as subsection 
                (m); and
                  (B) by inserting after subsection (j) the following 
                new subsection:
  ``(k) Insurance Authority for Refinancings.--
          ``(1) In general.--The Secretary may, upon application by a 
        mortgagee, insure under this subsection any mortgage given to 
        refinance an existing home equity conversion mortgage insured 
        under this section.
          ``(2) Anti-churning disclosure.--The Secretary shall, by 
        regulation, require that the mortgagee of a mortgage insured 
        under this subsection, provide to the mortgagor, within an 
        appropriate time period and in a manner established in such 
        regulations, a good faith estimate of: (A) the total cost of 
        the refinancing; and (B) the increase in the mortgagor's 
        principal limit as measured by the estimated initial principal 
        limit on the mortgage to be insured under this subsection less 
        the current principal limit on the home equity conversion 
        mortgage that is being refinanced and insured under this 
        subsection.
          ``(3) Waiver of counseling requirement.--The mortgagor under 
        a mortgage insured under this subsection may waive the 
        applicability, with respect to such mortgage, of the 
        requirements under subsection (d)(2)(B) (relating to third 
        party counseling), but only if--
                  ``(A) the mortgagor has received the disclosure 
                required under paragraph (2);
                  ``(B) the increase in the principal limit described 
                in paragraph (2) exceeds the amount of the total cost 
                of refinancing (as described in such paragraph) by an 
                amount to be determined by the Secretary; and
                  ``(C) the time between the closing of the original 
                home equity conversion mortgage that is refinanced 
                through the mortgage insured under this subsection and 
                the application for a refinancing mortgage insured 
                under this subsection does not exceed 5 years.
          ``(4) Credit for premiums paid.--Notwithstanding section 
        203(c)(2)(A), the Secretary may reduce the amount of the single 
        premium payment otherwise collected under such section at the 
        time of the insurance of a mortgage refinanced and insured 
        under this subsection. The amount of the single premium for 
        mortgages refinanced under this subsection shall be determined 
        by the Secretary based on the actuarial study required under 
        paragraph (5).
          ``(5) Actuarial study.--Not later than 180 days after the 
        date of the enactment of the American Homeownership and 
        Economic Opportunity Act of 2000, the Secretary shall conduct 
        an actuarial analysis to determine the adequacy of the 
        insurance premiums collected under the program under this 
        subsection with respect to--
                  ``(A) a reduction in the single premium payment 
                collected at the time of the insurance of a mortgage 
                refinanced and insured under this subsection;
                  ``(B) the establishment of a single national limit on 
                the benefits of insurance under subsection (g) 
                (relating to limitation on insurance authority); and
                  ``(C) the combined effect of reduced insurance 
                premiums and a single national limitation on insurance 
                authority.
          ``(6) Fees.--The Secretary may establish a limit on the 
        origination fee that may be charged to a mortgagor under a 
        mortgage insured under this subsection, except that such 
        limitation shall provide that the origination fee may be fully 
        financed with the mortgage and shall include any fees paid to 
        correspondent mortgagees approved by the Secretary. The 
        Secretary shall prohibit the charging of any broker fees in 
        connection with mortgages insured under this subsection.''.
          (2) Regulations.--The Secretary shall issue any final 
        regulations necessary to implement the amendments made by 
        paragraph (1) of this subsection, which shall take effect not 
        later than the expiration of the 180-day period beginning on 
        the date of the enactment of this Act. The regulations shall be 
        issued after notice and opportunity for public comment in 
        accordance with the procedure under section 553 of title 5, 
        United States Code, applicable to substantive rules 
        (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such 
        section).
  (b) Housing Cooperatives.--Section 255(b) of the National Housing Act 
(12 U.S.C. 1715z-20(b)) is amended--
          (1) in paragraph (2), by striking `` `mortgage',''; and
          (2) by adding at the end the following new paragraphs:
          ``(4) Mortgage.--The term `mortgage' means a first mortgage 
        or first lien on real estate, in fee simple, on all stock 
        allocated to a dwelling in a residential cooperative housing 
        corporation, or on a leasehold--
                  ``(A) under a lease for not less than 99 years that 
                is renewable; or
                  ``(B) under a lease having a period of not less than 
                10 years to run beyond the maturity date of the 
                mortgage.
          ``(5) First mortgage.--The term `first mortgage' means such 
        classes of first liens as are commonly given to secure advances 
        on, or the unpaid purchase price of, real estate or all stock 
        allocated to a dwelling unit in a residential cooperative 
        housing corporation, under the laws of the State in which the 
        real estate or dwelling unit is located, together with the 
        credit instruments, if any, secured thereby.''.
  (c) Waiver of Up-Front Premiums for Mortgages Used for Costs of Long-
Term Care Insurance or Health Care.--Section 255 of the National 
Housing Act (12 U.S.C. 1715z-20) is amended by inserting after 
subsection (k) (as added by subsection (a) of this section) the 
following new subsection:
  ``(l) Waiver of Up-Front Premiums.--
          ``(1) Mortgages to fund long-term care insurance.--In the 
        case of any mortgage insured under this section under which the 
        total amount (except as provided in paragraph (3)) of all 
        future payments described in subsection (b)(3) will be used 
        only for costs of a qualified long-term care insurance contract 
        (as such term is defined in section 7702B of the Internal 
        Revenue Code of 1986 (26 U.S.C. 7702B)) that covers the 
        mortgagor or members of the household residing in the property 
        that is subject to the mortgage, notwithstanding section 
        203(c)(2), the Secretary shall not charge or collect the single 
        premium payment otherwise required under subparagraph (A) of 
        such section to be paid at the time of insurance.
          ``(2) Mortgages to fund health care costs.--In the case of 
        any mortgage insured under this section under which the future 
        payments described in subsection (b)(3) will be used only for 
        costs for health care services (as such term is defined by the 
        Secretary) for the mortgagor or members of the household 
        residing in the property that is subject to the mortgage and 
        comply with limitations on such payments, as shall be 
        established by the Secretary and based upon the purposes of 
        this subsection and the accumulated equity of the mortgagor in 
        the property, notwithstanding section 203(c)(2), the Secretary 
        shall not charge or collect the single premium payment 
        otherwise required under subparagraph (A) of such section to be 
        paid at the time of insurance.
          ``(3) Authority to refinance existing mortgage and finance 
        closing costs.--A mortgage described in paragraphs (1) or (2) 
        may provide financing of amounts that are used to satisfy 
        outstanding mortgage obligations (in accordance with such 
        limitations as the Secretary shall prescribe) any amounts used 
        for initial service charges, appraisal, inspection, and other 
        fees (as approved by the Secretary) in connection with such 
        mortgage, and the amount of future payments described in 
        subsection (b)(3) under the mortgage shall be reduced 
        accordingly.''.
  (d) Study of Single National Mortgage Limit.--The Secretary of 
Housing and Urban Development shall conduct an actuarially based study 
of the effects of establishing, for mortgages insured under section 255 
of the National Housing Act (12 U.S.C. 1715z-20), a single maximum 
mortgage amount limitation in lieu of applicability of section 
203(b)(2) of such Act (12 U.S.C. 1709(b)(2)). The study shall--
          (1) examine the effects of establishing such limitation at 
        different dollar amounts; and
          (2) examine the effects of such various limitations on--
                  (A) the risks to the General Insurance Fund 
                established under section 519 of such Act;
                  (B) the mortgage insurance premiums that would be 
                required to be charged to mortgagors to ensure 
                actuarial soundness of such Fund; and
                  (C) take into consideration the various approaches to 
                providing credit to borrowers who refinance home equity 
                conversion mortgages insured under section 255 of such 
                Act.
Not later than 180 days after the date of the enactment of this Act, 
the Secretary shall complete the study under this subsection and submit 
a report describing the study and the results of the study to the 
Committee on Banking and Financial Services of the House of 
Representatives and to the Committee on Banking, Housing, and Urban 
Affairs of the Senate.

SEC. 209. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP PILOT PROGRAM.

  (a) Assistance for Law Enforcement Officers.--The Secretary of 
Housing and Urban Development shall carry out a pilot program in 
accordance with this section to assist Federal, State, and local law 
enforcement officers purchasing homes in locally-designated high-crime 
areas.
  (b) Eligibility.--To be eligible for assistance under this section, a 
law enforcement officer shall--
          (1) have completed not less than 6 months of service as a law 
        enforcement officer as of the date that the law enforcement 
        officer applies for such assistance; and
          (2) agree, in writing, to use the residence purchased with 
        such assistance as the primary residence of the law enforcement 
        officer for not less than 3 years after the date of purchase.
  (c) Mortgage Assistance.--If a law enforcement officer purchases a 
home in locally-designated high-crime area and finances such purchase 
through a mortgage insured under title II of the National Housing Act 
(12 U.S.C. 1707 et seq.), notwithstanding any provision of section 203 
or any other provision of the National Housing Act, the following shall 
apply:
          (1) Downpayment.--
                  (A) In general.--There shall be no downpayment 
                required if the purchase price of the property is not 
                more than the reasonable value of the property, as 
                determined by the Secretary.
                  (B) Purchase price exceeds value.--If the purchase 
                price of the property exceeds the reasonable value of 
                the property, as determined by the Secretary, the 
                required downpayment shall be the difference between 
                such reasonable value and the purchase price.
          (2) Closing costs.--The closing costs and origination fee for 
        such mortgage may be included in the loan amount.
          (3) Insurance premium payment.--There shall be 1 insurance 
        premium payment due on the mortgage. Such insurance premium 
        payment--
                  (A) shall be equal to 1 percent of the loan amount;
                  (B) shall be due and considered earned by the 
                Secretary at the time of the loan closing; and
                  (C) may be included in the loan amount and paid from 
                the loan proceeds.
  (d) Locally-Designated High-Crime Area.--
          (1) In general.--Any unit of local government may request 
        that the Secretary designate any area within the jurisdiction 
        of that unit of local government as a locally-designated high-
        crime area for purposes of this section if the proposed area--
                  (A) has a crime rate that is significantly higher 
                than the crime rate of the non-designated area that is 
                within the jurisdiction of the unit of local 
                government; and
                  (B) has a population that is not more than 25 percent 
                of the total population of area within the jurisdiction 
                of the unit of local government.
          (2) Deadline for consideration of request.--Not later than 60 
        days after receiving a request under paragraph (1), the 
        Secretary shall approve or disapprove the request.
  (e) Law Enforcement Officer.--For purposes of this section, the term 
``law enforcement officer'' has such meaning as the Secretary shall 
provide, except that such term shall include any individual who is 
employed as an officer in a correctional institution.
  (f) Sunset.--The Secretary shall not approve any application for 
assistance under this section that is received by the Secretary after 
the expiration of the 3-year period beginning on the date that the 
Secretary first makes available assistance under the pilot program 
under this section.

SEC. 210. STUDY OF MANDATORY INSPECTION REQUIREMENT UNDER SINGLE FAMILY 
                    HOUSING MORTGAGE INSURANCE PROGRAM.

  The Comptroller General of the United States shall conduct a study 
regarding the inspection of properties purchased with loans insured 
under section 203 of the National Housing Act. The study shall evaluate 
the following issues:
          (1) The feasibility of requiring inspections of all 
        properties purchased with loans insured under such section.
          (2) The level of financial losses or savings to the Mutual 
        Mortgage Insurance Fund that are likely to occur if inspections 
        are required on properties purchased with loans insured under 
        such section.
          (3) The potential impact on the process of buying a home if 
        inspections of properties purchased with loans insured under 
        such section are required, including the process of buying a 
        home in underserved areas where losses to the Mutual Mortgage 
        Insurance Fund are greatest.
          (4) The difference, if any, in the quality of homes purchased 
        with loans insured under such section that are inspected before 
        purchase and such homes that are not inspected before purchase.
          (5) The cost to homebuyers of requiring inspections before 
        purchase of properties with loans insured under such section.
          (6) The extent, if any, to which requiring inspections of 
        properties purchased with loans insured under such section will 
        result in adverse selection of loans insured under such 
        section.
          (7) The extent of homebuyer knowledge regarding property 
        inspections and the extent to which such knowledge affects the 
        decision of homebuyers to opt for or against having a property 
        inspection before purchasing a home.
          (8) The impact of the Homebuyer Protection Plan implemented 
        by the Department of Housing and Urban Development on the 
        number of appraisers authorized to appraise homes with 
        mortgages insured under section 203 of the National Housing 
        Act.
          (9) The cost to homebuyers incurred as a result of the 
        Homebuyer Protection plan, taking into consideration, among 
        other factors, an increase in appraisal fees.
          (10) The benefit or adverse impact of the Homebuyer 
        Protection Plan on minority homebuyers.
          (11) The extent to which the appraisal requirements of the 
        Homebuyer Protection Plan conflict with State laws regarding 
        appraisals and home inspections.
  Not later than the expiration of the 1-year period beginning on the 
date of the enactment of this Act, the Comptroller General shall submit 
to the Congress a report containing the results of the study and any 
recommendations with respect to the issues specified under this 
section.

SEC. 211. REPORT ON TITLE I HOME IMPROVEMENT LOAN PROGRAM.

  (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall submit a report to the Congress containing recommendations for 
improvements to the property improvement loan insurance program under 
title I of the National Housing Act, including improvements designed to 
address problems relating to home improvement contractors obtaining 
loans on behalf of homeowners.
  (b) Consultation.--In developing and determining recommendations for 
inclusion in the report under this section and in preparing the report, 
the Secretary shall consult with interested persons, organizations, and 
entities, including representatives of the lending industry, the home 
improvement industry, and consumer organizations.

               TITLE III--SECTION 8 HOMEOWNERSHIP OPTION

SEC. 301. DOWNPAYMENT ASSISTANCE.

  (a) Amendments.--Section 8(y) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(y)) is amended--
          (1) by redesignating paragraph (7) as paragraph (8); and
          (2) by inserting after paragraph (6) the following new 
        paragraph:
          ``(7) Downpayment assistance.--
                  ``(A) Authority.--A public housing agency may, in 
                lieu of providing monthly assistance payments under 
                this subsection on behalf of a family eligible for such 
                assistance and at the discretion of the public housing 
                agency, provide assistance for the family in the form 
                of a single grant to be used only as a contribution 
                toward the downpayment required in connection with the 
                purchase of a dwelling for fiscal year 2000 and each 
                fiscal year thereafter to the extent provided in 
                advance in appropriations Acts.
                  ``(B) Amount.--The amount of a downpayment grant on 
                behalf of an assisted family may not exceed the amount 
                that is equal to the sum of the assistance payments 
                that would be made during the first year of assistance 
                on behalf of the family, based upon the income of the 
                family at the time the grant is to be made.''.
  (b) Effective Date.--The amendments made by subsection (a) shall take 
effect immediately after the amendments made by section 555(c) of the 
Quality Housing and Work Responsibility Act of 1998 take effect 
pursuant to such section.

SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSISTANCE FOR DISABLED 
                    FAMILIES.

  (a) In General.--A public housing agency providing tenant-based 
assistance on behalf of an eligible family under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f) may provide 
assistance for a disabled family that purchases a dwelling unit 
(including a dwelling unit under a lease-purchase agreement) that will 
be owned by 1 or more members of the disabled family and will be 
occupied by the disabled family, if the disabled family--
          (1) purchases the dwelling unit before the expiration of the 
        3-year period beginning on the date that the Secretary first 
        implements the pilot program under this section;
          (2) demonstrates that the disabled family has income from 
        employment or other sources (including public assistance), as 
        determined in accordance with requirements of the Secretary, 
        that is not less than twice the payment standard established by 
        the public housing agency (or such other amount as may be 
        established by the Secretary);
          (3) except as provided by the Secretary, demonstrates at the 
        time the disabled family initially receives tenant-based 
        assistance under this section that one or more adult members of 
        the disabled family have achieved employment for the period as 
        the Secretary shall require;
          (4) participates in a homeownership and housing counseling 
        program provided by the agency; and
          (5) meets any other initial or continuing requirements 
        established by the public housing agency in accordance with 
        requirements established by the Secretary.
  (b) Determination of Amount of Assistance.--
          (1) In general.--
                  (A) Monthly expenses not exceeding payment 
                standard.--If the monthly homeownership expenses, as 
                determined in accordance with requirements established 
                by the Secretary, do not exceed the payment standard, 
                the monthly assistance payment shall be the amount by 
                which the homeownership expenses exceed the highest of 
                the following amounts, rounded to the nearest dollar:
                          (i) 30 percent of the monthly adjusted income 
                        of the disabled family.
                          (ii) 10 percent of the monthly income of the 
                        disabled family.
                          (iii) If the disabled family is receiving 
                        payments for welfare assistance from a public 
                        agency, and a portion of those payments, 
                        adjusted in accordance with the actual housing 
                        costs of the disabled family, is specifically 
                        designated by that agency to meet the housing 
                        costs of the disabled family, the portion of 
                        those payments that is so designated.
                  (B) Monthly expenses exceed payment standard.--If the 
                monthly homeownership expenses, as determined in 
                accordance with requirements established by the 
                Secretary, exceed the payment standard, the monthly 
                assistance payment shall be the amount by which the 
                applicable payment standard exceeds the highest of the 
                amounts under clauses (i), (ii), and (iii) of 
                subparagraph (A).
          (2) Calculation of amount.--
                  (A) Low-income families.--A disabled family that is a 
                low-income family shall be eligible to receive 100 
                percent of the amount calculated under paragraph (1).
                  (B) Income between 81 and 89 percent of median.--A 
                disabled family whose income is between 81 and 89 
                percent of the median for the area shall be eligible to 
                receive 66 percent of the amount calculated under 
                paragraph (1).
                  (C) Income between 90 and 99 percent of median.--A 
                disabled family whose income is between 90 and 99 
                percent of the median for the area shall be eligible to 
                receive 33 percent of the amount calculated under 
                paragraph (1).
                  (D) Income more than 99 percent of median.--A 
                disabled family whose income is more than 99 percent of 
                the median for the area shall not be eligible to 
                receive assistance under this section.
  (c) Inspections and Contract Conditions.--
          (1) In general.--Each contract for the purchase of a dwelling 
        unit to be assisted under this section shall--
                  (A) provide for pre-purchase inspection of the 
                dwelling unit by an independent professional; and
                  (B) require that any cost of necessary repairs be 
                paid by the seller.
          (2) Annual inspections not required.--The requirement under 
        subsection (o)(8)(A)(ii) of the United States Housing Act of 
        1937 for annual inspections shall not apply to dwelling units 
        assisted under this section.
  (d) Other Authority of the Secretary.--The Secretary may--
          (1) limit the term of assistance for a disabled family 
        assisted under this section;
          (2) provide assistance for a disabled family for the entire 
        term of a mortgage for a dwelling unit if the disabled family 
        remains eligible for such assistance for such term; and
          (3) modify the requirements of this section as the Secretary 
        determines to be necessary to make appropriate adaptations for 
        lease-purchase agreements.
  (e) Assistance Payments Sent to Lender.--The Secretary shall remit 
assistance payments under this section directly to the mortgagee of the 
dwelling unit purchased by the disabled family receiving such 
assistance payments.
  (f) Inapplicability of Certain Provisions.--Assistance under this 
section shall not be subject to the requirements of the following 
provisions:
          (1) Subsection (c)(3)(B) of section 8 of the United States 
        Housing Act of 1937.
          (2) Subsection (d)(1)(B)(i) of section 8 of the United States 
        Housing Act of 1937.
          (3) Any other provisions of section 8 of the United States 
        Housing Act of 1937 governing maximum amounts payable to owners 
        and amounts payable by assisted families.
          (4) Any other provisions of section 8 of the United States 
        Housing Act of 1937 concerning contracts between public housing 
        agencies and owners.
          (5) Any other provisions of the United States Housing Act of 
        1937 that are inconsistent with the provisions of this section.
  (g) Reversion to Rental Status.--
          (1) Non-fha mortgages.--If a disabled family receiving 
        assistance under this section defaults under a mortgage not 
        insured under the National Housing Act, the disabled family may 
        not continue to receive rental assistance under section 8 of 
        the United States Housing Act of 1937 unless it complies with 
        requirements established by the Secretary.
          (2) All mortgages.--A disabled family receiving assistance 
        under this section that defaults under a mortgage may not 
        receive assistance under this section for occupancy of another 
        dwelling unit owned by 1 or more members of the disabled 
        family.
          (3) Exception.--This subsection shall not apply if the 
        Secretary determines that the disabled family receiving 
        assistance under this section defaulted under a mortgage due to 
        catastrophic medical reasons or due to the impact of a 
        federally declared major disaster or emergency.
  (h) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement this section. Such regulations may not prohibit any public 
housing agency providing tenant-based assistance on behalf of an 
eligible family under section 8 of the United States Housing Act of 
1937 from participating in the pilot program under this section.
  (i) Definition of Disabled Family.--For the purposes of this section, 
the term ``disabled family'' has the meaning given the term ``person 
with disabilities'' in section 811(k)(2) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 8013(k)(2)).

SEC. 303. FUNDING FOR PILOT PROGRAMS.

  (a) Authorization of Appropriations.--There is authorized to be 
appropriated $2,000,000 for fiscal year 2001 for assistance in 
connection with the existing homeownership pilot programs carried out 
under the demonstration program authorized under to section 555(b) of 
the Quality Housing and Work Responsibility Act of 1998 (Public Law 
105-276; 112 Stat. 2613).
  (b) Use.--Subject to subsection (c), amounts made available pursuant 
to this section shall be used only through such homeownership pilot 
programs to provide, on behalf of families participating in such 
programs, amounts for downpayments in connection with dwellings 
purchased by such families using assistance made available under 
section 8(y) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(y)). No such downpayment grant may exceed 20 percent of the 
appraised value of the dwelling purchased with assistance under such 
section 8(y).
  (c) Matching Requirement.--The amount of assistance made available 
under this section for any existing homeownership pilot program may not 
exceed twice the amount donated from sources other than this section 
for use under the program for assistance described in subsection (b). 
Amounts donated from other sources may include amounts from State 
housing finance agencies and Neighborhood Housing Services of America.

              TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS

SEC. 401. REAUTHORIZATION.

  (a) Authorization of Appropriations.--The last sentence of section 
103 of the Housing and Community Development Act of 1974 (42 U.S.C. 
5303) is amended to read as follows: ``For purposes of assistance under 
section 106, there is authorized to be appropriated $4,900,000,000 for 
fiscal year 2001 and such sums as may be necessary for each of fiscal 
years 2002, 2003, 2004, and 2005.''.
  (b) Entitlement Grants.--
          (1) In general.--Section 102(a)(5)(B) of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 5302(a)(5)(B)) is 
        amended--
                  (A) by inserting ``(I)'' after ``(iii)''; and
                  (B) by inserting before the period at the end the 
                following: ``, or (II) has a population in its 
                unincorporated areas of not less than 450,000, 
exceptthat a town or township which is designated as a city pursuant to 
this subclause shall have only its unincorporated areas considered as a 
city for purposes of this title''.
          (2) Treatment as separate from urban counties.--Section 
        102(d) of the Housing and Community Development Act of 1974 (42 
        U.S.C. 5302(d)) is amended--
                  (A) by inserting ``(1)'' after ``(d)''; and
                  (B) by adding at the end the following new paragraph:
  ``(2) Notwithstanding paragraph (1), a town or township that is 
classified as a city by reason of subclause (II) of section 
102(a)(5)(B)(iii) shall be treated, for purposes of eligibility for a 
grant under section 106(b)(1) from amounts made available for a fiscal 
year beginning after the date of the enactment of the American 
Homeownership and Economic Opportunity Act of 2000, as an entity 
separate from the urban county in which it is located.''.
          (3) Eligibility of certain urban counties.--Section 102(a)(6) 
        of the Housing and Community Development Act of 1974 (42 U.S.C. 
        5302(a)(6)) is amended--
          (1) in subparagraph (D)--
                  (A) in clause (v), by striking ``or'' at the end;
                  (B) in clause (vi), by striking the period at the end 
                and inserting ``; or''; and
                  (C) by adding at the end the following new clause:
                  ``(vii)(I) has consolidated its government with one 
                or more municipal governments, such that within the 
                county boundaries there are no unincorporated areas, 
                (II) has a population of not less than 650,000, over 
                which the consolidated government has the authority to 
                undertake essential community development and housing 
                assistance activities, (III) for more than 10 years, 
                has been classified as an entitlement area for purposes 
                of allocating and distributing funds under section 106, 
                and (IV) as of the date of the enactment of this 
                clause, has over 90 percent of the county's population 
                within the jurisdiction of the consolidated 
                government.''; and
          (2) by adding at the end the following new subparagraph:
          ``(F) Notwithstanding any other provision of this paragraph, 
        any county that was classified as an urban county pursuant to 
        subparagraph (A) for fiscal year 1999, includes 10 cities each 
        having a population of less than 50,000, and has a population 
        in its unincorporated areas of 190,000 or more but less than 
        200,000, shall thereafter remain classified as an urban 
        county.''.

SEC. 402. PROHIBITION OF SET-ASIDES.

  Section 103 of the Housing and Community Development Act of 1974 (42 
U.S.C. 5303), as amended by section 401 of this Act, is further 
amended--
          (1) by inserting after ``Sec. 103.'' the following: ``(a) In 
        General.--''; and
          (2) by adding at the end the following new subsection:
  ``(b) Prohibition of Set-Asides.--Except as provided in paragraphs 
(1) and (2) of section 106(a) and section 107, amounts appropriated 
pursuant to subsection (a) of this section or otherwise to carry out 
this title (other than section 108) shall be used only for formula-
based grants allocated pursuant to section 106 and may not be otherwise 
used unless the provision of law providing for such other use 
specifically refers to this subsection and specifically states that 
such provision modifies or supersedes the provisions of this 
subsection.''.

SEC. 403. PUBLIC SERVICES CAP.

  Section 105(a)(8) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)(8)) is amended by striking ``fiscal years 
1993'' and all that follows through ``unit of general local 
government'' and inserting the following: ``fiscal years 1993 through 
2006 to the City of Los Angeles, the County of Los Angeles, or any 
other unit of general local government located in the County of Los 
Angeles, such city, such county, or each such unit of general local 
government, respectively,''.

SEC. 404. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

  (a) Eligible Activities.--Section 105(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
          (1) in paragraph (22)(C), by striking ``and'' at the end;
          (2) in paragraph (23), by striking the period at the end and 
        inserting a semicolon; and
          (3) by inserting after paragraph (23) the following new 
        paragraph:
          ``(24) provision of direct assistance to facilitate and 
        expand homeownership among uniformed employees (including 
        policemen, firemen, and sanitation and other maintenance 
        workers) of, and teachers who are employees of, the 
        metropolitan city or urban county (or an agency or school 
        district serving such city or county) receiving grant amounts 
        under this title pursuant to section 106(b) or the unit of 
        general local government (or an agency or school district 
        serving such unit) receiving such grant amounts pursuant to 
        section 106(d), except that--
                  ``(A) such assistance may only be provided on behalf 
                of such employees who are first-time homebuyers under 
                the meaning given such term in section 104(14) of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 12704(14)), except that, for purposes of this 
                paragraph, such section shall be applied by 
                substituting `section 105(a)(24) of the Housing and 
                Community Development Act of 1974' for `title II';
                  ``(B) notwithstanding section 102(a)(20)(B) or any 
                other provision of this title, such assistance may be 
                provided on behalf of such employees whose family 
                incomes do not exceed--
                          ``(i) 115 percent of the median income of the 
                        area involved, as determined by the Secretary 
                        with adjustments for smaller and larger 
                        families; or
                          ``(ii) with respect only to areas that the 
                        Secretary determines have high housing costs, 
                        taking into consideration median house prices 
                        and median family incomes for the area, 150 
                        percent of the median income of the area 
                        involved, as determined by the Secretary with 
                        adjustments for smaller and larger families;
                  ``(C) such assistance shall be used only for 
                acquiring principal residences for such employees, in a 
                manner that involves obligating amounts with respect to 
                any particular mortgage over a period of one year or 
                less, by--
                          ``(i) providing amounts for downpayments on 
                        mortgages;
                          ``(ii) paying reasonable closing costs 
                        normally associated with the purchase of a 
                        residence;
                          ``(iii) obtaining pre- or post-purchase 
                        counseling relating to the financial and other 
                        obligations of homeownership; or
                          ``(iv) subsidizing mortgage interest rates; 
                        and
                  ``(D) any residence purchased using assistance 
                provided under this paragraph shall be subject to 
                restrictions on resale that are--
                          ``(i) established by the metropolitan city, 
                        urban county, or unit of general local 
                        government providing such assistance; and
                          ``(ii) determined by the Secretary to be 
                        appropriate to comply with subparagraphs (A) 
                        and (B) of section 215(b)(3) of the Cranston-
                        Gonzalez National Affordable Housing Act (42 
                        U.S.C. 12745(b)(3)), except that, for purposes 
                        of this paragraph, such subparagraphs shall be 
                        applied by substituting `section 105(a)(24) of 
                        the Housing and Community Development Act of 
                        1974' for `this title';''.
  (b) Primary Objectives.--Section 105(c) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(c)) is amended by adding at the 
end the following new paragraph:
  ``(5) Homeownership assistance for municipal employees.--
Notwithstanding any other provision of this title, any assisted 
activity described in subsection (a)(24) of this section shall be 
considered, for purposes of this title, to benefit persons of low and 
moderate income and to be directed toward the objective under section 
101(c)(3).''.

SEC. 405. TECHNICAL AMENDMENT RELATING TO BROWNFIELDS.

  Section 105(a) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5305(a)), as amended by section 404 of this Act, is further 
amended--
          (1) in paragraph (25), by striking the period and inserting 
        ``; and''; and
          (2) by adding at the end the following new paragraph:
          ``(26) environmental cleanup and economic development 
        activities related to Brownfields projects in conjunction with 
        the appropriate environmental regulatory agencies.''.

SEC. 406. INCOME ELIGIBILITY.

  (a) In General.--In addition to the exceptions granted pursuant to 
section 590 of the Quality Housing and Work Responsibility Act of 1998 
(42 U.S.C. 5301 note), the Secretary of Housing and Urban Development 
shall, for not less than 10 other jurisdictions that are metropolitan 
cities or urban counties for purposes of title I of the Housing and 
Community Development Act of 1974, grant exceptions not later than 90 
days after the date of the enactment of this Act for such jurisdictions 
that provide that--
          (1) for purposes of the HOME investment partnerships program 
        under title II of the Cranston-Gonzalez National Affordable 
        Housing Act, the limitation based on percentage of median 
        income that is applicable under section 104(10), 214(1)(A), or 
        215(a)(1)(A) for any area of the jurisdiction shall be the 
        numerical percentage that is specified in such section; and
          (2) for purposes of the community development block grant 
        program under title I of the Housing and Community Development 
        Act of 1974, the limitation based on percentage of median 
        income that is applicable pursuant to section 102(a)(20) for 
        any area within the State or unit of general local government 
        shall be the numerical percentage that is specified in 
        subparagraph (A) of such section.
  (b) Selection.--In selecting the jurisdictions for which to grant 
such exceptions, the Secretary shall consider the relative median 
income of such jurisdictions and shall give preference to jurisdictions 
with the highest housing costs.

SEC. 407. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

  Section 863 of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12912) is amended to read as follows:

``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

  ``There is authorized to be appropriated to carry out this subtitle 
$260,000,000 for fiscal year 2001 and such sums as may be necessary for 
each of fiscal years 2002, 2003, 2004, and 2005.''.

             TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

SEC. 501. REAUTHORIZATION.

  (a) Authorization of Appropriations.--Section 205 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12724) is amended 
to read as follows:

``SEC. 205. AUTHORIZATION.

  ``(a) In General.--There is authorized to be appropriated to carry 
out this title $1,650,000,000 for fiscal year 2001 and such sums as may 
be necessary for each of fiscal years 2002, 2003, 2004, and 2005, of 
which--
          ``(1) not more than $25,000,000 in each such fiscal year 
        shall be for community housing partnership activities 
        authorized under section 233; and
          ``(2) not more than $15,000,000 in each such fiscal year 
        shall be for activities in support of State and local housing 
        strategies authorized under subtitle C, of which, in each of 
        fiscal years 2001 and 2002, $3,000,000 shall be for funding 
        grants under section 246.
  ``(b) Prohibition of Set-Asides.--Except as provided in subsection 
(a) of this section and section 217(a)(3), amounts appropriated 
pursuant to subsection (a) of this section or otherwise to carry out 
this title shall be used only for formula-based grants allocated 
pursuant to section 217 and may not be otherwise used unless the 
provision of law providing for such other use specifically refers to 
this subsection and specifically states that such provision modifies or 
supersedes the provisions of this subsection.''.
  (b) Allocations of Amounts.--Section 104(19) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12704(19)) is amended by 
adding at the end the following: ``The term `city' shall have the 
meaning given such term in section 102(a)(5)(B) of such Act. A town or 
township that is classified as a city by reason of subclause (II) of 
section 102(a)(5)(A)(B)(iii) of such Act shall be treated, 
notwithstanding section 102(d)(1) of such Act, as an entity separate 
from the urban county in which it is located for purposes of allocation 
of amounts under section 217 of this Act to units of general local 
government from amounts made available for any fiscal year beginning 
after the date of the enactment of the American Homeownership and 
Economic Opportunity Act of 2000.''.
  (c) Pilot Program for Developing Regional Housing Strategies.--
Subtitle C of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12781 et seq.) is amended by adding at the end 
the following new section:

``SEC. 246. PILOT PROGRAM FOR DEVELOPING COMPREHENSIVE REGIONAL HOUSING 
                    AFFORDABILITY STRATEGIES.

  ``(a) Authority.--The Secretary may, using any amounts made available 
for grants under this section, make not more than 3 grants for each of 
fiscal years 2001 and 2002 to consortia of units of general local 
government described in subsection (b) for costs of developing and 
implementing comprehensive housing affordability strategies on a 
regional basis.
  ``(b) Eligible Consortia.--A consortium of units of general local 
government described in this subsection is a consortium that--
          ``(1) is eligible under section 216(2) to be deemed a unit of 
        general local government for purposes of this title; and
          ``(2) consists of multiple units of general local government; 
        and
          ``(3) contains only units of general local government that 
        are geographically contiguous.
  ``(c) Multi-State Requirement.--In each fiscal year in which grants 
are made under this section, not less than one of the consortia that 
receives a grant shall be a consortium described in subsection (b) that 
includes units of general local government from 2 or more States.''.

SEC. 502. ELIGIBILITY OF LIMITED EQUITY COOPERATIVES AND MUTUAL HOUSING 
                    ASSOCIATIONS.

  (a) Congressional Findings.--Section 202(10) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12721(10)) is amended by 
inserting ``mutual housing associations,'' after ``limited equity 
cooperatives,''.
  (b) Definitions.--Section 104 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12704) is amended--
          (1) by redesignating paragraph (23) as paragraph (22);
          (2) by redesignating paragraph (24) (relating to the 
        definition of ``insular area'') as paragraph (23); and
          (3) by adding at the end the following new paragraphs:
          ``(26) The term `limited equity cooperative' means a 
        cooperative housing corporation which, in a manner determined 
        by the Secretary to be acceptable, restricts income eligibility 
        of purchasers of membership shares of stock in the cooperative 
        corporation or the initial and resale price of such shares, or 
        both, so that the shares remain available and affordable to 
        low-income families.
          ``(27) The term `mutual housing association' means a private 
        entity that--
                  ``(A) is organized under State law;
                  ``(B) is described in section 501(c) of the Internal 
                Revenue Code of 1986 and exempt from taxation under 
                section 501(a) of such Code;
                  ``(C) owns, manages, and continuously develops 
                affordable housing by providing long-term housing for 
                low- and moderate-income families;
                  ``(D) provides that eligible families who purchase 
                membership interests in the association shall have a 
                right to residence in a dwelling unit in the housing 
                during the period that they hold such membership 
                interest; and
                  ``(E) provides for the residents of such housing to 
                participate in the ongoing management of the 
                housing.''.
  (c) Eligibility.--Section 215 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12745) is amended--
          (1) in subsection (b), by adding after and below paragraph 
        (4) the following:
``Housing that is owned by a limited equity cooperative or a mutual 
housing association may be considered by a participating jurisdiction 
to be housing for homeownership for purposes of this title to the 
extent that ownership or membership in such a cooperative or 
association, respectively, constitutes homeownership under State or 
local laws.''; and
          (2) in subsection (a), by adding at the end the following new 
        paragraph:
          ``(6) Limited equity cooperatives and mutual housing 
        associations.--Housing that is owned by a limited equity 
        cooperative or a mutual housing association may be considered 
        by a participating jurisdiction to be rental housing for 
        purposes of this title to the extent that ownership or 
        membership in such a cooperative or association, respectively, 
        constitutes rental of a dwelling under State or local laws.''.

SEC. 503. ADMINISTRATIVE COSTS.

  Section 212(c) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12742(c)) is amended by adding at the end the following 
new sentence: ``A participating jurisdiction may use amounts made 
available under this subsection for a fiscal year for administrative 
and planning costs by amortizing the costs of administration and 
planning activities under this subtitle over the entire duration of 
such activities.''.

SEC. 504. LEVERAGING AFFORDABLE HOUSING INVESTMENT THROUGH LOCAL LOAN 
                    POOLS.

  (a) Eligible Investments.--Section 212(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(b)) is amended by 
inserting after ``interest subsidies'' the following: ``, advances to 
provide reserves for loan pools or to provide partial loan 
guarantees,''.
  (b) Timely Investment of Trust Funds.--Section 218(e) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748) is 
amended to read as follows:
  ``(e) Investment Within 15 Days.--
          ``(1) In general.--The participating jurisdiction shall, not 
        later than 15 days after funds are drawn from the 
        jurisdiction's HOME Investment Trust Fund, invest such funds, 
        together with any interest earned thereon, in the affordable 
        housing for which the funds were withdrawn.
          ``(2) Loan pools.--In the case of a participating 
        jurisdiction that withdraws Trust Fund amounts for investment 
        in the form of an advance for reserves or partial loan 
        guarantees under a program providing such credit enhancement 
        for loans for affordable housing, the amounts shall be 
        considered to be invested for purposes of paragraph (1) upon 
        the completion of both of the following actions:
                  ``(A) Control of the amounts is transferred to the 
                program.
                  ``(B) The jurisdiction and the entity operating the 
                program enter into a written agreement that--
                          ``(i) provides that such funds may be used 
                        only in connection with such program;
                          ``(ii) defines the terms and conditions of 
                        the loan pool reserve or partial loan 
                        guarantees; and
                          ``(iii) provides that such entity shall 
                        ensure that amounts from non-Federal sources 
                        have been contributed, or are committed for 
                        contribution, to the pool available for loans 
                        for affordable housing that will be backed by 
                        such reserves or loan guarantees in an amount 
                        equal to 10 times the amount invested from 
                        Trust Fund amounts.''.
  (c) Expiration of Right To Withdraw Funds.--Section 218(g) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748(g)) 
is amended to read as follows:
  ``(g) Expiration of Right To Draw Funds.--
          ``(1) In general.--If any funds becoming available to a 
        participating jurisdiction under this title are not placed 
        under binding commitment to affordable housing within 24 months 
        after the last day of the month in which such funds are 
        deposited in the jurisdiction's HOME Investment Trust Fund, the 
        jurisdiction's right to draw such funds from the HOME 
        Investment Trust Fund shall expire. The Secretary shall reduce 
        the line of credit in the participating jurisdiction's HOME 
        Investment Trust Fund by the expiring amount and shall 
        reallocate the funds by formula in accordance with section 
        217(d).
          ``(2) Loan pools.--In the case of a participating 
        jurisdiction that withdraws Trust Fund amounts for investment 
        in the manner provided under subsection (e)(2), the amounts 
        shall be considered to be placed under binding commitment to 
        affordable housing for purposes of paragraph (1) of this 
        subsection at the time that the amounts are obligated for use 
        under, and are subject to, a written agreement described in 
        subsection (e)(2)(B).''.
  (d) Treatment of Mixed Income Loan Pools as Affordable Housing.--
          (1) In general.--Section 215 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12745) is amended by 
        adding at the end the following new subsection:
  ``(c) Loan Pools.--Notwithstanding subsections (a) and (b), housing 
financed using amounts invested as provided in section 218(e)(2) shall 
qualify as affordable housing only if the housing complies with the 
following requirements:
          ``(1) In the case of housing that is for homeownership--
                  ``(A) of the units financed with amounts so 
                invested--
                          ``(i) not less than 75 percent are principal 
                        residences of owners whose families qualify as 
                        low-income families--
                                  ``(I) in the case of a contract to 
                                purchase existing housing, at the time 
                                of purchase;
                                  ``(II) in the case of a lease-
                                purchase agreement for existing housing 
                                or for housing to be constructed, at 
                                the time the agreement is signed; or
                                  ``(III) in the case of a contract to 
                                purchase housing to be constructed, at 
                                the time the contract is signed;
                          ``(ii) all are principal residences of owners 
                        whose families qualify as moderate-income 
                        families--
                                  ``(I) in the case of a contract to 
                                purchase existing housing, at the time 
                                of purchase;
                                  ``(II) in the case of a lease-
                                purchase agreement for existing housing 
                                or for housing to be constructed, at 
                                the time the agreement is signed; or
                                  ``(III) in the case of a contract to 
                                purchase housing to be constructed, at 
                                the time the contract is signed; and
                          ``(iii) all comply with paragraphs (3) and 
                        (4) of subsection (b), except that paragraph 
                        (3) shall be applied for purposes of this 
                        clause by substituting `subsection (c)(2)(B)' 
                        and `low- and moderate-income homebuyers' for 
                        `paragraph (2)' and `low-income homebuyers', 
                        respectively; and
                  ``(B) units made available for purchase only by 
                families who qualify as low-income families shall have 
                an initial purchase price that complies with the 
                requirements of subsection (b)(1).
          ``(2) In the case of housing that is for rental, the 
        housing--
                  ``(A) complies with subparagraphs (D) through (F) of 
                subsection (a)(1);
                  ``(B)(i) has not less than 75 percent of the units 
                occupied by households that qualify as low-income 
                families and is occupied only by households that 
                qualify as moderate-income families; or
                  ``(ii) temporarily fails to comply with clause (i) 
                only because of increases in the incomes of existing 
                tenants and actions satisfactory to the Secretary are 
                being taken to ensure that all vacancies in the housing 
                are being filled in accordance with clause (i) until 
                such noncompliance is corrected; and
                  ``(C) bears rents, in the case of units made 
                available for occupancy only by households that qualify 
                as low-income families, that comply with the 
                requirements of subsection (a)(1)(A).
        Paragraphs (4) and (5) of subsection (a) shall apply to housing 
        that is subject to this subsection.''.
          (2) Definition.--Section 104 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12704), as amended 
        by section 502 of this Act, is further amended by adding at the 
        end the following new paragraph:
          ``(28) The term `moderate income families' means families 
        whose incomes do not exceed the median income for the area, as 
        determined by the Secretary with adjustments for smaller and 
        larger families, except that the Secretary may establish income 
        ceilings higher or lower than the median income for the area on 
        the basis of the Secretary's findings that such variations are 
        necessary because of prevailing levels of construction costs or 
        fair market rents, or unusually high or low family incomes.''.

SEC. 505. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

  (a) Eligible Activities.--Paragraph (2) of section 215(b) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12745(b)(2)) is amended to read as follows:
          ``(2) is the principal residence of an owner who--
                  ``(A) is a member of a family that qualifies as a 
                low-income family--
                          ``(i) in the case of a contract to purchase 
                        existing housing, at the time of purchase;
                          ``(ii) in the case of a lease-purchase 
                        agreement for existing housing or for housing 
                        to be constructed, at the time the agreement is 
                        signed; or
                          ``(iii) in the case of a contract to purchase 
                        housing to be constructed, at the time the 
                        contract is signed; or
                  ``(B)(i) is a uniformed employee (which shall include 
                policemen, firemen, and sanitation and other 
                maintenance workers) or a teacher who is an employee, 
                of the participating jurisdiction (or an agency or 
                school district serving such jurisdiction) that is 
                investing funds made available under this subtitle to 
                support homeownership of the residence; and
                  ``(ii) is a member of a family whose income, at the 
                time referred to in clause (i), (ii), or (iii) of 
                subparagraph (A), as appropriate, and as determined by 
                the Secretary with adjustments for smaller and larger 
                families, does not exceed 115 percent of the median 
                income of the area, except that, with respect only to 
                such areas that the Secretary determines have high 
                housing costs, taking into consideration median house 
                prices and median family incomes for the area, such 
                income limitation shall be 150 percent of the median 
                income of the area, as determined by the Secretary with 
                adjustments for smaller and larger families;''.
  (b) Income Targeting.--Section 214(2) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12744(2)) is amended by 
inserting before the semicolon the following: ``or families described 
in section 215(b)(2)(B)''.
  (c) Eligible Investments.--Section 212(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(b)) is amended by 
adding at the end the following new sentence: ``Notwithstanding the 
preceding sentence, in the case of homeownership assistance for 
residences of owners described in section 215(b)(2)(B), funds made 
available under this subtitle may only be invested (A) to provide 
amounts for downpayments on mortgages, (B) to pay reasonable closing 
costs normally associated with the purchase of a residence, (C) to 
obtain pre- or post-purchase counseling relating to the financial and 
other obligations of homeownership, or (D) to subsidize mortgage 
interest rates.''.

SEC. 506. USE OF SECTION 8 ASSISTANCE BY ``GRAND-FAMILIES'' TO RENT 
                    DWELLING UNITS IN ASSISTED PROJECTS.

  Section 215(a) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12745(a)), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
paragraph:
          ``(7) Waiver of qualifying rent.--
                  ``(A) In general.--For the purpose of providing 
                affordable housing appropriate for families described 
                in subparagraph (B), the Secretary may, upon the 
                application of the project owner, waive the 
                applicability of subparagraph (A) of paragraph (1) with 
                respect to a dwelling unit if--
                          ``(i) the unit is occupied by such a family, 
                        on whose behalf tenant-based assistance is 
                        provided under section 8 of the United States 
                        Housing Act of 1937 (42 U.S.C. 1437f);
                          ``(ii) the rent for the unit is not greater 
                        than the existing fair market rent for 
                        comparable units in the area, as established by 
                        the Secretary under section 8 of the United 
                        States Housing Act of 1937; and
                          ``(iii) the Secretary determines that the 
                        waiver, together with waivers under this 
                        paragraph for other dwelling units in the 
                        project, will result in the use of amounts 
                        described in clause (iii) in an effective 
                        manner that will improve the provision of 
                        affordable housing for such families.
                  ``(B) Eligible families.--A family described in this 
                subparagraph is a family that consists of at least one 
                elderly person (who is the head of household) and one 
                or more of such person's grandchildren, great 
                grandchildren, great nieces, great nephews, or great 
                great grandchildren (as defined by the Secretary), but 
                does not include any parent of such grandchildren, 
                great grandchildren, great nieces, great nephews, or 
                great great grandchildren. Such term includes any such 
                grandchildren, great grandchildren, great nieces, great 
                nephews, or great great grandchildren who have been 
                legally adopted by such elderly person.''.

SEC. 507. LOAN GUARANTEES.

  Subtitle A of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12741 et seq.) is amended by adding at the end 
the following new section:

``SEC. 227. LOAN GUARANTEES.

  ``(a) Authority.--The Secretary may, upon such terms and conditions 
as the Secretary may prescribe, guarantee and make commitments to 
guarantee, only to such extent or in such amounts as provided in 
appropriations Acts, the notes or other obligations issued by 
eligibleparticipating jurisdictions or by public agencies designated by 
and acting on behalf of eligible participating jurisdictions for 
purposes of financing (including credit enhancements and debt service 
reserves) the acquisition, new construction, reconstruction, or 
moderate or substantial rehabilitation of affordable housing (including 
real property acquisition, site improvement, conversion, and 
demolition), and other related expenses (including financing costs and 
relocation expenses of any displaced persons, families, businesses, or 
organizations). Housing funded under this section shall meet the 
requirements of this subtitle.
  ``(b) Requirements.--Notes or other obligations guaranteed under this 
section shall be in such form and denominations, have such maturities, 
and be subject to such conditions as may be prescribed by the 
Secretary. The Secretary may not deny a guarantee under this section on 
the basis of the proposed repayment period for the note or other 
obligation, unless the period is more than 20 years or the Secretary 
determines that the period otherwise causes the guarantee to constitute 
an unacceptable financial risk.
  ``(c) Limitation on Total Notes and Obligations.--The Secretary may 
not guarantee or make a commitment to guarantee any note or other 
obligation if the total outstanding notes or obligations guaranteed 
under this section on behalf of the participating jurisdiction issuing 
the note or obligation (excluding any amount defeased under a contract 
entered into under subsection (e)(1)) would thereby exceed an amount 
equal to 5 times the amount of the participating jurisdiction's latest 
allocation under section 217.
  ``(d) Use of Program Funds.--Notwithstanding any other provision of 
this subtitle, funds allocated to the participating jurisdiction under 
this subtitle (including program income derived therefrom) are 
authorized for use in the payment of principal and interest due on the 
notes or other obligations guaranteed pursuant to this section and the 
payment of such servicing, underwriting, or other issuance or 
collection charges as may be specified by the Secretary.
  ``(e) Security.--To assure the full repayment of notes or other 
obligations guaranteed under this section, and payment of the issuance 
or collection charges specified by the Secretary under subsection (d), 
and as a prior condition for receiving such guarantees, the Secretary 
shall require the participating jurisdiction (and its designated public 
agency issuer, if any) to--
          ``(1) enter into a contract, in a form acceptable to the 
        Secretary, for repayment of such notes or other obligations and 
        the other specified charges;
          ``(2) pledge as security for such repayment any allocation 
        for which the participating jurisdiction may become eligible 
        under this subtitle; and
          ``(3) furnish, at the discretion of the Secretary, such other 
        security as may be deemed appropriate by the Secretary in 
        making such guarantees, which may include increments in local 
        tax receipts generated by the housing assisted under this 
        section or disposition proceeds from the sale of land or 
        housing.
  ``(f) Repayment Authority.--The Secretary may, notwithstanding any 
other provision of this subtitle or any other Federal, State, or local 
law, apply allocations pledged pursuant to subsection (e) to any 
repayments due the United States as a result of such guarantees.
  ``(g) Full Faith and Credit.--The full faith and credit of the United 
States is pledged to the payment of all guarantees made under this 
section. Any such guarantee made by the Secretary shall be conclusive 
evidence of the eligibility of the notes or other obligations for such 
guarantee with respect to principal and interest, and the validity of 
any such guarantee so made shall be incontestable in the hands of a 
holder of the guaranteed obligations.
  ``(h) Tax Status.--With respect to any obligation guaranteed pursuant 
to this section, the guarantee and the obligation shall be designed in 
a manner such that the interest paid on such obligation shall be 
included in gross income for purposes of the Internal Revenue Code of 
1986.
  ``(i) Monitoring.--The Secretary shall monitor the use of guarantees 
under this section by eligible participating jurisdictions. If the 
Secretary finds that 50 percent of the aggregate guarantee authority 
for any fiscal year has been committed, the Secretary may impose 
limitations on the amount of guarantees any 1 participating 
jurisdiction may receive during that fiscal year.
  ``(j) Guarantee of Trust Certificates.--
          ``(1) Authority.--The Secretary may, upon such terms and 
        conditions as the Secretary deems appropriate, guarantee the 
        timely payment of the principal of and interest on such trust 
        certificates or other obligations as may--
                  ``(A) be offered by the Secretary or by any other 
                offeror approved for purposes of this subsection by the 
                Secretary; and
                  ``(B) be based on and backed by a trust or pool 
                composed of notes or other obligations guaranteed or 
                eligible for guarantee by the Secretary under this 
                section.
          ``(2) Full faith and credit.--To the same extent as provided 
        in subsection (g), the full faith and credit of the United 
        States is pledged to the payment of all amounts which may be 
        required to be paid under any guarantee by the Secretary under 
        this subsection.
          ``(3) Subrogation.--In the event the Secretary pays a claim 
        under a guarantee issued under this section, the Secretary 
        shall be subrogated fully to the rights satisfied by such 
        payment.
          ``(4) Other powers and rights.--No State or local law, and no 
        Federal law, shall preclude or limit the exercise by the 
        Secretary of--
                  ``(A) the power to contract with respect to public 
                offerings and other sales of notes, trust certificates, 
                and other obligations guaranteed under this section, 
                upon such terms and conditions as the Secretary deems 
                appropriate;
                  ``(B) the right to enforce, by any means deemed 
                appropriate by the Secretary, any such contract; and
                  ``(C) the Secretary's ownership rights, as 
                applicable, in notes, certificates or other obligations 
                guaranteed under this section, or constituting the 
                trust or pool against which trust certificates or other 
                obligations guaranteed under this section are offered.
  ``(k) Aggregate Limitation.--The total amount of outstanding 
obligations guaranteed on a cumulative basis by the Secretary under 
this section shall not at any time exceed $2,000,000,000.''.

SEC. 508. DOWNPAYMENT ASSISTANCE FOR 2- AND 3-FAMILY RESIDENCES.

  (a) Authority.--The Secretary of Housing and Urban Development shall 
carry out a pilot program under this section under which covered 
jurisdictions may use amounts described in subsection (b) to make loans 
to eligible homebuyers for use as downpayments on 2- and 3-family 
residences.
  (b) Covered Assistance.--Notwithstanding section 105 of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5305) and section 212 
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12742), a covered jurisdiction may use amounts provided to the 
jurisdiction pursuant to section 106(b) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5406(b)) and amounts in the HOME 
Investment Trust Fund for the jurisdiction for downpayment loans 
meeting the requirements of subsection (d) to homebuyers meeting the 
requirements of subsection (c), but only to the extent such 
jurisdictions agree to comply with the requirements of this section, as 
the Secretary may require.
  (c) Eligible Homebuyers.--A homebuyer meets the requirements of this 
subsection only if the homebuyer is an individual or family--
          (1) whose income does not exceed 80 percent of the median 
        family income for the area within which the residence to be 
        purchased with the downpayment loan under subsection (d) is 
        located; except that the Secretary may, pursuant to a request 
        by a covered jurisdiction demonstrating that the jurisdiction 
        has high housing costs (taking into consideration median home 
        prices and median family incomes for the area), increase the 
        percentage limitation under this paragraph to not more than 110 
        percent of the median family income for the area;
          (2) who has successfully completed a program regarding the 
        responsibilities and financial management involved in 
        homeownership and ownership of rental property that is approved 
        by the Secretary;
          (3) has a satisfactory credit history and record as a tenant 
        of rental housing; and
          (4) who, if such individual or family has an income that 
        exceeds 80 percent of the median income for the area, enters 
        into a binding agreement to comply with the requirements under 
        subsection (e) (relating to affordability of other dwelling 
        units in the residence).
  (d) No-Interest Downpayment Loans.--A loan meets the requirements of 
this subsection only if--
          (1) the principal obligation of the loan--
                  (A) may be used only for a downpayment for 
                acquisition of a 2- or 3-family residence and for 
                closing costs and other costs payable at the time of 
                closing, as the Secretary shall provide; and
                  (B) does not exceed the amount that is equal to the 
                sum of (i) 7 percent of the purchase price of the 
                residence, and (ii) such closing and other costs;
          (2) the borrower under the loan is paying, for acquisition of 
        the residence, at least 3 percent of the cost of acquisition of 
        the residence in cash or its equivalent;
          (3) the borrower under the loan will occupy a dwelling unit 
        in the residence purchased using the loan as the principal 
        residence of the borrower;
          (4) the loan terms--
                  (A) do not require the borrower to be pre-qualified 
                for a loan that finances the remainder of the purchase 
                price of a residence described in paragraph (1)(A); and
                  (B) provide that the proceeds of the loan are 
                available for use (as provided in paragraph (1)) only 
                during the 4-month period beginning upon the making of 
                the loan to the borrower and that such proceeds shall 
                revert to the covered jurisdiction upon the conclusion 
                of such period if the borrower has not entered into a 
                contract for purchase of a residence meeting the 
                requirements of such paragraph before such conclusion, 
                except that the Secretary shall provide that covered 
                jurisdictions may extend such 4-month period under such 
                circumstances as the Secretary shall prescribe;
          (5) the loan terms provide for repayment of the principal 
        obligation of the loan, without interest, at such time as the 
        covered jurisdiction may provide, except that the principal 
        obligation shall be immediately repayable at the time that the 
        borrower--
                  (A) transfers or sells the borrower's ownership 
                interest in such residence or ceases to use the 
                residence purchased with the loan proceeds as his or 
                her principal residence; or
                  (B) obtains a subsequent loan secured by such 
                residence or any equity of the borrower in such 
                residence, the proceeds of which are not used to prepay 
                or pay off the entire balance due on the existing loan 
                secured by such residence; or
          (6) the loan terms provide that, upon sale of the residence 
        purchased with the proceeds of the loan, the borrower shall 
        repay to the covered jurisdiction (together with the principal 
        obligation of the loan repayable pursuant to paragraph (5)(A)) 
        an additional amount that bears the same ratio to any increase 
        in the price of the residence upon such sale (compared to the 
        price paid for the residence upon purchase using such loan) as 
        the amount of the loan bears to the purchase price paid for the 
        residence in the purchase using such loan; and
          (7) the loan complies with such other requirements as the 
        Secretary may prescribe.
  (e) Affordability of Rental Units.--Any dwelling units in the 
residence purchased using a loan provided pursuant to the authority 
under this section to a borrower described in subsection (c)(4) of this 
section shall be used only as rental dwelling units and shall be made 
available for rental only at a monthly rental price that does not 
exceed the fair market rent under section 8(c)(2)(A) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)), as periodically 
adjusted, for a unit of the applicable size located in the area in 
which the residence is located. Compliance with this subsection shall 
be monitored and enforced by the covered jurisdiction providing the 
amounts for the downpayment loan under this section for the purchase of 
such residence.
  (f) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Covered jurisdiction.--The term ``covered jurisdiction'' 
        means, with respect to a fiscal year--
                  (A) a metropolitan city or urban county that receives 
                a grant for such fiscal year pursuant to section 106(b) 
                of the Housing and Community Development Act of 1974 
                (42 U.S.C. 5306(b)); or
                  (B) a jurisdiction that is a participating 
                jurisdiction for such fiscal year for purposes of the 
                HOME Investment Partnerships Act (42 U.S.C. 12721 et 
                seq.).
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.

               TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES

SEC. 601. REAUTHORIZATION OF NEIGHBORHOOD REINVESTMENT CORPORATION.

  Section 608(a)(1) of the Neighborhood Reinvestment Corporation Act 
(42 U.S.C. 8107(a)(1)) is amended by striking the first sentence and 
inserting the following: ``There is authorized to be appropriated to 
the corporation to carry out this title $95,000,000 for fiscal year 
2001 and such sums as may be necessary for each of fiscal years 2002 
through 2005. Of the amounts appropriated to the corporation for fiscal 
year 2001, $5,000,000 shall be available only for the corporation to 
provide assistance under duplex homeownership programs established 
before the date of the enactment of the American Homeownership and 
Economic Opportunity Act of 2000 through Neighborworks Homeownership 
Center pilot projects established before such date of enactment.''.

SEC. 602. HOMEOWNERSHIP ZONES.

  Section 186 of the Housing and Community Development Act of 1992 (42 
U.S.C. 12898a) is amended to read as follows:

``SEC. 186. HOMEOWNERSHIP ZONE GRANTS.

  ``(a) Authority.--The Secretary of Housing and Urban Development may 
make grants to units of general local government to assist 
homeownership zones. Homeownership zones are contiguous, geographically 
defined areas, primarily residential in nature, in which large-scale 
development projects are designed to reclaim distressed neighborhoods 
by creating homeownership opportunities for low- and moderate-income 
families. Projects in homeownership zones are intended to serve as a 
catalyst for private investment, business creation, and neighborhood 
revitalization.
  ``(b) Eligible Activities.--Amounts made available under this section 
may be used for projects that include any of the following activities 
in the homeownership zone:
          ``(1) Acquisition, construction, and rehabilitation of 
        housing.
          ``(2) Site acquisition and preparation, including demolition, 
        construction, reconstruction, or installation of public and 
        other site improvements and utilities directly related to the 
        homeownership zone.
          ``(3) Direct financial assistance to homebuyers.
          ``(4) Homeownership counseling.
          ``(5) Relocation assistance.
          ``(6) Marketing costs, including affirmative marketing 
        activities.
          ``(7) Other project-related costs.
          ``(8) Reasonable administrative costs (up to 5 percent of the 
        grant amount).
          ``(9) Other housing-related activities proposed by the 
        applicant as essential to the success of the homeownership zone 
        and approved by the Secretary.
  ``(c) Application.--To be eligible for a grant under this section, a 
unit of general local government shall submit an application for a 
homeownership zone grant in such form and in accordance with such 
procedures as the Secretary shall establish.
  ``(d) Selection Criteria.--The Secretary shall select applications 
for funding under this section through a national competition, using 
selection criteria established by the Secretary, which shall include--
          ``(1) the degree to which the proposed activities will result 
        in the improvement of the economic, social, and physical 
        aspects of the neighborhood and the lives of its residents 
        through the creation of new homeownership opportunities;
          ``(2) the levels of distress in the homeownership zone as a 
        whole, and in the immediate neighborhood of the project for 
        which assistance is requested;
          ``(3) the financial soundness of the plan for financing 
        homeownership zone activities;
          ``(4) the leveraging of other resources; and
          ``(5) the capacity to successfully carry out the plan.
  ``(e) Grant Approval Amounts.--The Secretary may establish a maximum 
amount for any grant for any funding round under this section. A grant 
may not be made in an amount that exceeds the amount that the Secretary 
determines is necessary to fund the project for which the application 
is made.
  ``(f) Program Requirements.--A homeownership zone proposal shall--
          ``(1) provide for a significant number of new homeownership 
        opportunities that will make a visible improvement in an 
        immediate neighborhood;
          ``(2) not be inconsistent with such planning and design 
        principles as may be prescribed by the Secretary;
          ``(3) be designed to stimulate additional investment in that 
        area;
          ``(4) provide for partnerships with persons or entities in 
        the private and nonprofit sectors;
          ``(5) incorporate a comprehensive approach to revitalization 
        of the neighborhood;
          ``(6) establish a detailed time-line for commencement and 
        completion of construction activities; and
          ``(7) provide for affirmatively furthering fair housing.
  ``(g) Income Targeting.--At least 51 percent of the homebuyers 
assisted with funds under this section shall have household incomes at 
or below 80 percent of median income for the area, as determined by the 
Secretary.
  ``(h) Environmental Review.--For purposes of environmental review, 
decisionmaking, and action pursuant to the National Environmental 
Policy Act of 1969 and other provisions of law that further the 
purposes of such Act, a grant under this section shall be treated as 
assistance under the HOME Investment Partnerships Act and shall be 
subject to the regulations issued by the Secretary to implement section 
288 of such Act.
  ``(i) Review, Audit, and Reporting.--The Secretary shall make such 
reviews and audits and establish such reporting requirements as may be 
necessary or appropriate to determine whether the grantee has carried 
out its activities in a timely manner and in accordance with the 
requirements of this section. The Secretary may adjust, reduce, or 
withdraw amounts made available, or take other action as appropriate, 
in accordance with the Secretary's performance reviews and audits under 
this section.
  ``(j) Authorization.--There is authorized to be appropriated to carry 
out this section $25,000,000 for fiscal year 2001 and such sums as may 
be necessary for fiscal year 2002, to remain available until 
expended.''.

SEC. 603. LEASE-TO-OWN.

  (a) Sense of Congress.--It is the sense of the Congress that 
residential tenancies under lease-to-own provisions can facilitate 
homeownership by low- and moderate-income families and provide 
opportunities for homeownership for such families who might not 
otherwise be able to afford homeownership.
  (b) Report.--Not later than the expiration of the 3-month period 
beginning on the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall submit a report to the Congress--
          (1) analyzing whether lease-to-own provisions can be 
        effectively incorporated within the HOME investment 
        partnerships program, the public housing program, the tenant-
        based rental assistance program under section 8 of the United 
        States Housing Act of 1937, or any other programs of the 
        Department to facilitate homeownership by low- or moderate-
        income families; and
          (2) any legislative or administrative changes necessary to 
        alter or amend such programs to allow the use of lease-to-own 
        options to provide homeownership opportunities.

SEC. 604. LOCAL CAPACITY BUILDING.

  Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 note) 
is amended--
          (1) in subsection (a), by inserting ``National Association of 
        Housing Partnerships,'' after ``Humanity,''; and
          (2) in subsection (e), by striking ``$25,000,000'' and all 
        that follows and inserting ``, for each fiscal year, such sums 
        as may be necessary to carry out this section.''.

SEC. 605. CONSOLIDATED APPLICATION AND PLANNING REQUIREMENT AND SUPER-
                    NOFA.

  (a) Consolidated Application.--Section 106 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12706) is amended to read as 
follows:

``SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY PLANNING AND 
                    DEVELOPMENT PROGRAMS.

  ``(a) Requirement.--The Secretary shall, by regulation, provide for 
jurisdictions to comply with the planning and application requirements 
under the covered programs under subsection (b) by submitting to the 
Secretary, for a program year, a single consolidated submission under 
this section that complies with the requirements for planning and 
application submissions under the laws relating to the covered programs 
and shall serve, for the jurisdiction, as the planning document and an 
application for funding under the covered programs.
  ``(b) Covered programs.--The covered programs under this subsection 
are the following programs:
          ``(1) The HOME investment partnerships program under title II 
        of this Act (42 U.S.C. 12721 et seq.).
          ``(2) The community development block grant program under 
        title I of the Housing and Community Development Act of 1974 
        (42 U.S.C. 5301 et seq.).
          ``(3) The economic development initiative program under 
        section 108(q) of the Housing and Community Development Act of 
        1974 (42 U.S.C. 5308(q)).
          ``(4) The emergency shelter grants program under subtitle B 
        of title IV of the Stewart B. McKinney Homeless Assistance Act 
        (42 U.S.C. 11371 et seq.).
          ``(5) The housing opportunities for persons with AIDS program 
        under subtitle D of title VIII of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12901 et seq.).
  ``(c) Program Year.--In establishing requirements for a consolidated 
submission under this section, the Secretary shall provide for a 
consolidated program year, which shall comply with the various 
application and review deadlines under the covered programs.
  ``(d) Adequacy of Existing Regulations.--The regulations of the 
Secretary relating to consolidated submissions for community planning 
and development programs, part 91 of title 24, Code of Federal 
Regulations, as in effect on March 1, 1999, shall be considered to be 
sufficient to comply with this section, except to the extent that the 
program referred to in paragraph (3) of subsection (b) is not covered 
by such regulations.
  ``(e) Consistency.--The Secretary shall, by regulation or otherwise, 
as deemed by the Secretary to be appropriate, require any application 
for housing assistance under title II of this Act, assistance under the 
Housing and Community Development Act of 1974, or assistance under the 
Stewart B. McKinney Homeless Assistance Act, to contain or be 
accompanied by a certification by an appropriate State or local public 
official that the proposed housing activities are consistent with the 
housing strategy of the jurisdiction to be served.''.
  (b) Super-NOFA.--The Department of Housing and Urban Development Act 
is amended by inserting after section 12 (42 U.S.C. 3537a) the 
following new section:

``SEC. 13. NOTICE OF FUNDING AVAILABILITY.

  ``(a) Requirement.--In making amounts for a fiscal year under the 
covered programs under subsection (b) available to applicants, the 
Secretary shall issue a consolidated notice of funding availability 
that--
          ``(1) applies to as many of the covered programs as the 
        Secretary determines is practicable;
          ``(2) simplifies the application process for funding under 
        such programs by providing for application under various 
        covered programs through a single, unified application;
          ``(3) promotes comprehensive approaches to housing and 
        community development by providing for applicants to identify 
        coordination of efforts under various covered programs; and
          ``(4) clearly informs prospective applicants of the general 
        and specific requirements under law for applying for funding 
        under such programs.
  ``(b) Covered Programs.--The covered programs under this subsection 
are the programs that are administered by the Secretary and identified 
by the Secretary for purposes of this section, in the following areas:
          ``(1) Housing and community development programs.
          ``(2) Economic development and empowerment programs.
          ``(3) Targeted housing assistance and homeless assistance 
        programs.''.

SEC. 606. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

  (a) Reauthorization.--Subsection (p) of section 11 of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended to read as follows:
  ``(p) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for fiscal year 2001 
and such sums as may be necessary for each of fiscal years 2002 and 
2003.''.
  (b) Eligible Expenses.--Section 11(d)(2)(A) of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended by inserting before the period at the end the following: ``, 
which may include reimbursing an organization, consortium, or 
affiliate, upon approval of any required environmental review, for 
nongrant amounts of the organization, consortium, or affiliate advanced 
before such review to acquire land''.
  (c) Deadline for Recapture of Funds.--Section 11 of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended--
          (1) in subsection (i)(5)--
                  (A) by striking ``if the organization or consortia 
                has not used any grant amounts'' and inserting ``the 
                Secretary shall recapture any grant amounts provided to 
                the organization or consortia that are not used'';
                  (B) by striking ``(or,'' and inserting ``, except 
                that such period shall be 36 months''; and
                  (C) by striking ``within 36 months), the Secretary 
                shall recapture such unused amounts'' and inserting 
                ``and in the case of a grant amounts provided to a 
                local affiliate of the organization or consortia that 
                is developing 5 or more dwellings in connection with 
                such grant amounts''; and
          (2) in subsection (j), by inserting after ``carry out this 
        section'' the following: ``and grant amounts provided to a 
        local affiliate of the organization or consortia that is 
        developing 5 or more dwellings in connection with such grant 
        amounts''.
  (d) Technical Corrections.--Section 11 of the Housing Opportunity 
Program Extension Act of 1996 (42 U.S.C. 12805 note) is amended--
          (1) in subsection (b)(4), by striking ``Habitat for Humanity 
        International, its affiliates, and other''; and
          (2) in subsection (e)(2), by striking ``consoria'' and 
        inserting ``consortia''.

SEC. 607. HOUSING COUNSELING ORGANIZATIONS.

  Section 106 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x) is amended--
          (1) in subsection (a)(1)(ii), by inserting ``and cooperative 
        housing'' before the semicolon at the end; and
          (2) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A), by striking ``and'' 
                        at the end;
                          (ii) in subparagraph (B), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                          (iii) by adding at the end the following new 
                        subparagraph:
                  ``(C) to the National Cooperative Bank Development 
                Corporation--
                          ``(i) to provide homeownership counseling to 
                        eligible homeowners that is specifically 
                        designed to relate to ownership under 
                        cooperative housing arrangements; and
                          ``(ii) to assist in the establishment and 
                        operation of well-managed and viable 
                        cooperative housing boards.'';
                  (B) in paragraph (4)(A), by inserting before the 
                semicolon at the end the following: ``or, in the case 
                of a home loan made to finance the purchase of stock or 
                membership in a cooperative ownership housing 
                corporation, by the stock or membership interest''; and
                  (C) in paragraph (6)(C), by adding before the period 
                at the end the following: ``and includes a loan that is 
                secured by a first lien given in accordance with the 
                laws of the State where the property is located and 
                that is made to finance the purchase of stock or 
                membership in a cooperative ownership housing 
                corporation the permanent occupancy of dwelling units 
                of which is restricted to members of such corporation, 
                where the purchase of such stock or membership will 
                entitle the purchaser to the permanent occupancy of 1 
                of such units''.

SEC. 608. COMMUNITY LEAD INFORMATION CENTERS AND LEAD-SAFE HOUSING.

  Section 1011(e) of the Residential Lead-Based Paint Hazard Reduction 
Act of 1992 (42 U.S.C. 4852(e)) is amended--
          (1) in paragraph (7), by inserting ``, which may include 
        leasing of lead-safe temporary housing'' before the semicolon 
        at the end;
          (2) in paragraph (9), by striking ``and'' at the end;
          (3) by redesignating paragraph (10) as paragraph (11); and
          (4) by inserting after paragraph (9) the following new 
        paragraph:
          ``(10) provide accessible information through centralized 
        locations that provide a variety of residential lead-based 
        paint poisoning prevention services to the community that such 
        services are intended to benefit; and''.

            TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP

SEC. 701. LANDS TITLE REPORT COMMISSION.

  (a) Establishment.--Subject to sums being provided in advance in 
appropriations Acts, there is established a Commission to be known as 
the Lands Title Report Commission (hereafter in this section referred 
to as the ``Commission'') to facilitate home loan mortgages on Indian 
trust lands. The Commission will be subject to oversight by the 
Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate.
  (b) Membership.--
          (1) Appointment.--The Commission shall be composed of 12 
        members, appointed not later than 90 days after the date of the 
        enactment of this Act as follows:
                  (A) 4 members shall be appointed by the President.
                  (B) 4 members shall be appointed by the Chairperson 
                of the Committee on Banking and Financial Services of 
                the House of Representatives.
                  (C) 4 members shall be appointed by the Chairperson 
                of the Committee on Banking, Housing, and Urban Affairs 
                of the Senate.
          (2) Qualifications.--
                  (A) Members of tribes.--At all times, not less than 8 
                of the members of the Commission shall be members of 
                federally recognized Indian tribes.
                  (B) Experience in land title matters.--All members of 
                the Commission shall have experience in and knowledge 
                of land title matters relating to Indian trust lands.
          (3) Chairperson.--The Chairperson of the Commission shall be 
        one of the members of the Commission appointed under paragraph 
        (1)(C), as elected by the members of the Commission.
          (4) Vacancies.--Any vacancy on the Commission shall not 
        affect its powers, but shall be filled in the manner in which 
        the original appointment was made.
          (5) Travel expenses.--Members of the Commission shall serve 
        without pay, but each member shall receive travel expenses, 
        including per diem in lieu of subsistence, in accordance with 
        sections 5702 and 5703 of title 5, United States Code.
  (c) Initial Meeting.--The Chairperson of the Commission shall call 
the initial meeting of the Commission. Such meeting shall be held 
within 30 days after the Chairperson of the Commission determines that 
sums sufficient for the Commission to carry out its duties under this 
Act have been appropriated for such purpose.
  (d) Duties.--The Commission shall analyze the system of the Bureau of 
Indian Affairs of the Department of the Interior for maintaining land 
ownership records and title documents and issuing certified title 
status reports relating to Indian trust lands and, pursuant to such 
analysis, determine how best to improve or replace the system--
          (1) to ensure prompt and accurate responses to requests for 
        title status reports;
          (2) to eliminate any backlog of requests for title status 
        reports; and
          (3) to ensure that the administration of the system will not 
        in any way impair or restrict the ability of Native Americans 
        to obtain conventional loans for purchase of residences located 
        on Indian trust lands, including any actions necessary to 
        ensure that the system will promptly be able to meet future 
        demands for certified title status reports, taking into account 
        the anticipated complexity and volume of such requests.
  (e) Report.--Not later than the date of the termination of the 
Commission under subsection (h), the Commission shall submit a report 
to the Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate describing the analysis and determinations made 
pursuant to subsection (d).
  (f) Powers.--
          (1) Hearings and sessions.--The Commission may, for the 
        purpose of carrying out this section, hold hearings, sit and 
        act at times and places, take testimony, and receive evidence 
        as the Commission considers appropriate.
          (2) Staff of federal agencies.--Upon request of the 
        Commission, the head of any Federal department or agency may 
        detail, on a reimbursable basis, any of the personnel of that 
        department or agency to the Commission to assist it in carrying 
        out its duties under this section.
          (3) Obtaining official data.--The Commission may secure 
        directly from any department or agency of the United States 
        information necessary to enable it to carry out this section. 
        Upon request of the Chairperson of the Commission, the head of 
        that department or agency shall furnish that information to the 
        Commission.
          (4) Mails.--The Commission may use the United States mails in 
        the same manner and under the same conditions as other 
        departments and agencies of the United States.
          (5) Administrative support services.--Upon the request of the 
        Commission, the Administrator of General Services shall provide 
        to the Commission, on a reimbursable basis, the administrative 
        support services necessary for the Commission to carry out its 
        duties under this section.
          (6) Staff.--The Commission may appoint personnel as it 
        considers appropriate, subject to the provisions of title 5, 
        United States Code, governing appointments in the competitive 
        service, and shall pay such personnel in accordance with the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        that title relating to classification and General Schedule pay 
        rates.
  (g) Authorization of Appropriations.--To carry out this section, 
there is authorized to be appropriated $500,000. Such sums shall remain 
available until expended.
  (h) Termination.--The Commission shall terminate 1 year after the 
date of the initial meeting of the Commission.

SEC. 702. LOAN GUARANTEES.

  Section 184(i) of the Housing and Community Development Act of 1992 
(12 U.S.C. 1715z-13a(i)) is amended--
          (1) in paragraph (5), by striking subparagraph (C) and 
        inserting the following new subparagraph:
                  ``(C) Limitation on outstanding aggregate principal 
                amount.--Subject to the limitations in subparagraphs 
                (A) and (B), the Secretary may enter into commitments 
                to guarantee loans under this section in each fiscal 
                year with an aggregate outstanding principal amount not 
                exceeding such amount as may be provided in 
                appropriation Acts for such fiscal year.''; and
          (2) in paragraph (7), by striking ``each of fiscal years 
        1997, 1998, 1999, 2000, and 2001'' and inserting ``each fiscal 
        year''.

SEC. 703. NATIVE AMERICAN HOUSING ASSISTANCE.

  (a) Restriction on Waiver Authority.--
          (1) In general.--Section 101(b)(2) of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4111(b)(2)) is amended by striking ``if the Secretary'' 
        and all that follows through the period at the end and 
        inserting the following: ``for a period of not more than 90 
        days, if the Secretary determines that an Indian tribe has not 
        complied with, or is unable to comply with, those requirements 
        due to exigent circumstances beyond the control of the Indian 
        tribe.''.
          (2) Local cooperation agreement.--Section 101(c) of the 
        Native American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4111(c)) is amended by adding at the end the 
        following: ``The Secretary may waive the requirements of this 
        subsection and subsection (d) if the recipient has made a good 
        faith effort to fulfill the requirements of this subsection and 
        subsection (d) and agrees to make payments in lieu of taxes to 
        the appropriate taxing authority in an amount consistent with 
        the requirements of subsection (d)(2) until such time as the 
        matter of making such payments has been resolved in accordance 
        with subsection (d).''.
  (b) Assistance to Families That Are Not Low-Income.--Section 102(c) 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4112(c)) is amended by adding at the end the following:
          ``(6) Certain families.--With respect to assistance provided 
        under section 201(b)(2) by a recipient to Indian families that 
        are not low-income families, evidence that there is a need for 
        housing for each such family during that period that cannot 
        reasonably be met without such assistance.''.
  (c) Elimination of Waiver Authority for Small Tribes.--Section 102 of 
the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4112) is amended--
          (1) by striking subsection (f); and
          (2) by redesignating subsection (g) as subsection (f).
  (d) Environmental Compliance.--Section 105 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4115) 
is amended by adding at the end the following:
  ``(d) Environmental Compliance.--The Secretary may waive the 
requirements under this section if the Secretary determines that a 
failure on the part of a recipient to comply with provisions of this 
section--
          ``(1) will not frustrate the goals of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) or 
        any other provision of law that furthers the goals of that Act;
          ``(2) does not threaten the health or safety of the community 
        involved by posing an immediate or long-term hazard to 
        residents of that community;
          ``(3) is a result of inadvertent error, including an 
        incorrect or incomplete certification provided under subsection 
        (c)(1); and
          ``(4) may be corrected through the sole action of the 
        recipient.''.
  (e) Eligibility of Law Enforcement Officers for Housing Assistance.--
Section 201(b) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4131(b)) is amended--
          (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (4)'';
          (2) by redesignating paragraphs (4) and (5) as paragraphs (5) 
        and (6), respectively; and
          (3) by inserting after paragraph (3) the following new 
        paragraph:
          ``(4) Law enforcement officers.--A recipient may provide 
        housing or housing assistance provided through affordable 
        housing activities assisted with grant amounts under this Act 
        for a law enforcement officer on an Indian reservation or other 
        Indian area, if--
                  ``(A) the officer--
                          ``(i) is employed on a full-time basis by the 
                        Federal Government or a State, county, or 
                        tribal government; and
                          ``(ii) in implementing such full-time 
                        employment, is sworn to uphold, and make 
                        arrests for, violations of Federal, State, 
                        county, or tribal law; and
                  ``(B) the recipient determines that the presence of 
                the law enforcement officer on the Indian reservation 
                or other Indian area may deter crime.''.
  (f) Oversight.--
          (1) Repayment.--Section 209 of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4139) 
        is amended to read as follows:

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

  ``If a recipient uses grant amounts to provide affordable housing 
under this title, and at any time during the useful life of the housing 
the recipient does not comply with the requirement under section 
205(a)(2), the Secretary shall take appropriate action under section 
401(a).''.
          (2) Audits and reviews.--Section 405 of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4165) is amended to read as follows:

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

  ``(a) Requirements Under Chapter 75 of Title 31, United States 
Code.--An entity designated by an Indian tribe as a housing entity 
shall be treated, for purposes of chapter 75 of title 31, United States 
Code, as a non-Federal entity that is subject to the audit requirements 
that apply to non-Federal entities under that chapter.
  ``(b) Additional Reviews and Audits.--
          ``(1) In general.--In addition to any audit or review under 
        subsection (a), to the extent the Secretary determines such 
        action to be appropriate, the Secretary may conduct an audit or 
        review of a recipient in order to--
                  ``(A) determine whether the recipient--
                          ``(i) has carried out--
                                  ``(I) eligible activities in a timely 
                                manner; and
                                  ``(II) eligible activities and 
                                certification in accordance with this 
                                Act and other applicable law;
                          ``(ii) has a continuing capacity to carry out 
                        eligible activities in a timely manner; and
                          ``(iii) is in compliance with the Indian 
                        housing plan of the recipient; and
                  ``(B) verify the accuracy of information contained in 
                any performance report submitted by the recipient under 
                section 404.
          ``(2) On-site visits.--To the extent practicable, the reviews 
        and audits conducted under this subsection shall include on-
        site visits by the appropriate official of the Department of 
        Housing and Urban Development.
  ``(c) Review of Reports.--
          ``(1) In general.--The Secretary shall provide each recipient 
        that is the subject of a report made by the Secretary under 
        this section notice that the recipient may review and comment 
        on the report during a period of not less than 30 days after 
        the date on which notice is issued under this paragraph.
          ``(2) Public availability.--After taking into consideration 
        any comments of the recipient under paragraph (1), the 
        Secretary--
                  ``(A) may revise the report; and
                  ``(B) not later than 30 days after the date on which 
                those comments are received, shall make the comments 
                and the report (with any revisions made under 
                subparagraph (A)) readily available to the public.
  ``(d) Effect of Reviews.--Subject to section 401(a), after reviewing 
the reports and audits relating to a recipient that are submitted to 
the Secretary under this section, the Secretary may adjust the amount 
of a grant made to a recipient under this Act in accordance with the 
findings of the Secretary with respect to those reports and audits.''.
  (g) Allocation Formula.--Section 302(d)(1) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4152(d)(1)) is amended--
          (1) by striking ``The formula,'' and inserting the following:
                  ``(A) In general.--Except with respect to an Indian 
                tribe described in subparagraph (B), the formula''; and
          (2) by adding at the end the following:
                  ``(B) Certain indian tribes.--With respect to fiscal 
                year 2001 and each fiscal year thereafter, for any 
                Indian tribe with an Indian housing authority that owns 
                or operates fewer than 250 public housing units, the 
                formula shall provide that if the amount provided for a 
                fiscal year in which the total amount made available 
                for assistance under this Act is equal to or greater 
                than the amount made available for fiscal year 1996 for 
                assistance for the operation and modernization of the 
                public housing referred to in subparagraph (A), then 
                the amount provided to that Indian tribe as 
                modernization assistance shall be equal to the average 
                annual amount of funds provided to the Indian tribe 
                (other than funds provided as emergency assistance) 
                under the assistance program under section 14 of the 
                United States Housing Act of 1937 (42 U.S.C. 1437l) for 
                the period beginning with fiscal year 1992 and ending 
                with fiscal year 1997.''.
  (h) Hearing Requirement.--Section 401(a) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4161(a)) is amended--
          (1) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and realigning 
        such subparagraphs (as so redesignated) so as to be indented 4 
        ems from the left margin;
          (2) by striking ``Except as provided'' and inserting the 
        following:
          ``(1) In general.--Except as provided'';
          (3) by striking ``If the Secretary takes an action under 
        paragraph (1), (2), or (3)'' and inserting the following:
          ``(2) Continuance of actions.--If the Secretary takes an 
        action under subparagraph (A), (B), or (C) of paragraph (1)''; 
        and
          (4) by adding at the end the following:
          ``(3) Exception for certain actions.--
                  ``(A) In general.--Notwithstanding any other 
                provision of this subsection, if the Secretary makes a 
                determination that the failure of a recipient of 
                assistance under this Act to comply substantially with 
                any material provision (as that term is defined by the 
                Secretary) of this Act is resulting, and would continue 
                to result, in a continuing expenditure of Federal funds 
                in a manner that is not authorized by law, the 
                Secretary may take an action described in paragraph 
                (1)(C) before conducting a hearing.
                  ``(B) Procedural requirement.--If the Secretary takes 
                an action described in subparagraph (A), the Secretary 
                shall--
                          ``(i) provide notice to the recipient at the 
                        time that the Secretary takes that action; and
                          ``(ii) conduct a hearing not later than 60 
                        days after the date on which the Secretary 
                        provides notice under clause (i).
                  ``(C) Determination.--Upon completion of a hearing 
                under this paragraph, the Secretary shall make a 
                determination regarding whether to continue taking the 
                action that is the subject of the hearing, or take 
                another action under this subsection.''.
  (i) Performance Agreement Time Limit.--Section 401(b) of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4161(b)) is amended--
          (1) by striking ``If the Secretary'' and inserting the 
        following:
          ``(1) In general.--If the Secretary'';
          (2) by striking ``(1) is not'' and inserting the following:
                  ``(A) is not'';
          (3) by striking ``(2) is a result'' and inserting the 
        following:
                  ``(B) is a result'';
          (4) in the flush material following paragraph (1)(B), as 
        redesignated by paragraph (3) of this subsection--
                  (A) by realigning such material so as to be indented 
                2 ems from the left margin; and
                  (B) by inserting before the period at the end the 
                following: ``, if the recipient enters into a 
                performance agreement with the Secretary that specifies 
                the compliance objectives that the recipient will be 
                required to achieve by the termination date of the 
                performance agreement''; and
          (5) by adding at the end the following:
          ``(2) Performance agreement.--The period of a performance 
        agreement described in paragraph (1) shall be for 1 year.
          ``(3) Review.--Upon the termination of a performance 
        agreement entered into under paragraph (1), the Secretary shall 
        review the performance of the recipient that is a party to the 
        agreement.
          ``(4) Effect of review.--If, on the basis of a review under 
        paragraph (3), the Secretary determines that the recipient--
                  ``(A) has made a good faith effort to meet the 
                compliance objectives specified in the agreement, the 
                Secretary may enter into an additional performance 
                agreement for the period specified in paragraph (2); 
                and
                  ``(B) has failed to make a good faith effort to meet 
                applicable compliance objectives, the Secretary shall 
                determine the recipient to have failed to comply 
                substantially with this Act, and the recipient shall be 
                subject to an action under subsection (a).''.
  (j) Reference.--Section 104(b)(1) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4114(b)(1)) is 
amended by striking ``Davis-Bacon Act (40 U.S.C. 276a-276a-5)'' and 
inserting ``Act of March 3, 1931 (commonly known as the Davis-Bacon 
Act; chapter 411; 46 Stat. 1494; 40 U.S.C 276a et seq.)''.
  (k) Technical and Conforming Amendments.--
          (1) Table of contents.--Section 1(b) of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4101 note) is amended in the table of contents--
                  (A) by striking the item relating to section 206; and
                  (B) by striking the item relating to section 209 and 
                inserting the following:

``209. Noncompliance with affordable housing requirement.''.

          (2) Certification of compliance with subsidy layering 
        requirements.--Section 206 of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4136) 
        is repealed.
          (3) Terminations.--Section 502(a) of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4181(a)) is amended by adding at the end the following: 
        ``Any housing that is the subject of a contract for tenant-
        based assistance between the Secretary and an Indian housing 
        authority that is terminated under this section shall, for the 
        following fiscal year and each fiscal year thereafter, be 
        considered to be a dwelling unit under section 302(b)(1).''.

   TITLE VIII--TRANSFER OF HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND 
                        NONPROFIT ORGANIZATIONS

SEC. 801. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD HOUSING TO 
                    LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT 
                    CORPORATIONS.

  Section 204 of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997 
(12 U.S.C. 1715z-11a) is amended--
          (1) by striking ``Flexible Authority.--'' and inserting 
        ``Disposition of HUD-Owned Properties. (a) Flexible Authority 
        for Multifamily Projects.--''; and
          (2) by adding at the end the following new subsection:
  ``(b) Transfer of Unoccupied and Substandard Housing to Local 
Governments and Community Development Corporations.--
          ``(1) Transfer authority.--Notwithstanding the authority 
        under subsection (a) and the last sentence of section 204(g) of 
        the National Housing Act (12 U.S.C. 1710(g)), the Secretary of 
        Housing and Urban Development shall transfer ownership of any 
        qualified HUD property, subject to the requirements of this 
        section, to a unit of general local government having 
        jurisdiction for the area in which the property is located or 
        to a community development corporation which operates within 
        such a unit of general local government in accordance with this 
        subsection, but only to the extent that units of general local 
        government and community development corporations consent to 
        transfer and the Secretary determines that such transfer is 
        practicable.
          ``(2) Qualified hud properties.--For purposes of this 
        subsection, the term `qualified HUD property' means any 
        property for which, as of the date that notification of the 
        property is first made under paragraph (3)(B), not less than 6 
        months have elapsed since the later of the date that the 
        property was acquired by the Secretary or the date that the 
        property was determined to be unoccupied or substandard, that 
        is owned by the Secretary and is--
                  ``(A) an unoccupied multifamily housing project;
                  ``(B) a substandard multifamily housing project; or
                  ``(C) an unoccupied single family property that--
                          ``(i) has been determined by the Secretary 
                        not to be an eligible asset under section 
                        204(h) of the National Housing Act (12 U.S.C. 
                        1710(h)); or
                          ``(ii) is an eligible asset under such 
                        section 204(h), but--
                                  ``(I) is not subject to a specific 
                                sale agreement under such section; and
                                  ``(II) has been determined by the 
                                Secretary to be inappropriate for 
                                continued inclusion in the program 
                                under such section 204(h) pursuant to 
                                paragraph (10) of such section.
          ``(3) Timing.--The Secretary shall establish procedures that 
        provide for--
                  ``(A) time deadlines for transfers under this 
                subsection;
                  ``(B) notification to units of general local 
                government and community development corporations of 
                qualified HUD properties in their jurisdictions;
                  ``(C) such units and corporations to express interest 
                in the transfer under this subsection of such 
                properties;
                  ``(D) a right of first refusal for transfer of 
                qualified HUD properties to units of general local 
                government and community development corporations, 
                under which--
                          ``(i) the Secretary shall establish a period 
                        during which the Secretary may not transfer 
                        such properties except to such units and 
                        corporations;
                          ``(ii) the Secretary shall offer qualified 
                        HUD properties that are single family 
                        properties for purchase by units of general 
                        local government at a cost of $1 for each 
                        property, but only to the extent that the costs 
                        to the Federal Government of disposal at such 
                        price do not exceed the costs to the Federal 
                        Government of disposing of property subject to 
                        the procedures for single family property 
                        established by the Secretary pursuant to the 
                        authority under the last sentence of section 
                        204(g) of the National Housing Act (12 U.S.C. 
                        1710(g));
                          ``(iii) the Secretary may accept an offer to 
                        purchase a property made by a community 
                        development corporation only if the offer 
                        provides for purchase on a cost recovery basis; 
                        and
                          ``(iv) the Secretary shall accept an offer to 
                        purchase such a property that is made during 
                        such period by such a unit or corporation and 
                        that complies with the requirements of this 
                        paragraph;
                  ``(E) a written explanation, to any unit of general 
                local government or community development corporation 
                making an offer to purchase a qualified HUD property 
                under this subsection that is not accepted, of the 
                reason that such offer was not acceptable.
          ``(4) Other disposition.--With respect to any qualified HUD 
        property, if the Secretary does not receive an acceptable offer 
        to purchase the property pursuant to the procedure established 
        under paragraph (3), the Secretary shall dispose of the 
        property to the unit of general local government in which 
        property is located or to community development corporations 
        located in such unit of general local government on a 
        negotiated, competitive bid, or other basis, on such terms as 
        the Secretary deems appropriate.
          ``(5) Satisfaction of indebtedness.--Before transferring 
        ownership of any qualified HUD property pursuant to this 
        subsection, the Secretary shall satisfy any indebtedness 
        incurred in connection with the property to be transferred, by 
        canceling the indebtedness.
          ``(6) Determination of status of properties.--To ensure 
        compliance with the requirements of this subsection, the 
        Secretary shall take the following actions:
                  ``(A) Upon enactment.--Upon the enactment of the 
                American Homeownership and Economic Opportunity Act of 
                2000, the Secretary shall promptly assess each 
                residential property owned by the Secretary to 
                determine whether such property is a qualified HUD 
                property.
                  ``(B) Upon acquisition.--Upon acquiring any 
                residential property, the Secretary shall promptly 
                determine whether the property is a qualified HUD 
                property.
                  ``(C) Updates.--The Secretary shall periodically 
                reassess the residential properties owned by the 
                Secretary to determine whether any such properties have 
                become qualified HUD properties.
          ``(7) Tenant leases.--This subsection shall not affect the 
        terms or the enforceability of any contract or lease entered 
        into with respect to any residential property before the date 
        that such property becomes a qualified HUD property.
          ``(8) Use of property.--Property transferred under this 
        subsection shall be used only for appropriate neighborhood 
        revitalization efforts, including homeownership, rental units, 
        commercial space, and parks, consistent with local zoning 
        regulations, local building codes, and subdivision regulations 
        and restrictions of record.
          ``(9) Inapplicability to properties made available for 
        homeless.--Notwithstanding any other provision of this 
        subsection, this subsection shall not apply to any properties 
        that the Secretary determines are to be made available for use 
        by the homeless pursuant to subpart E of part 291 of title 24, 
        Code of Federal Regulations, during the period that the 
        properties are so available.
          ``(10) Protection of existing contracts.--This subsection may 
        not be construed to alter, affect, or annul any legally binding 
        obligations entered intowith respect to a qualified HUD 
property before the property becomes a qualified HUD property.
          ``(11) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                  ``(A) Community development corporation.--The term 
                `community development corporation' means a nonprofit 
                organization whose primary purpose is to promote 
                community development by providing housing 
                opportunities for low-income families.
                  ``(B) Cost recovery basis.--The term `cost recovery 
                basis' means, with respect to any sale of a residential 
                property by the Secretary, that the purchase price paid 
                by the purchaser is equal to or greater than the sum of 
                (i) the appraised value of the property, as determined 
                in accordance with such requirements as the Secretary 
                shall establish, and (ii) the costs incurred by the 
                Secretary in connection with such property during the 
                period beginning on the date on which the Secretary 
                acquires title to the property and ending on the date 
                on which the sale is consummated.
                  ``(C) Multifamily housing project.--The term 
                `multifamily housing project' has the meaning given the 
                term in section 203 of the Housing and Community 
                Development Amendments of 1978.
                  ``(D) Residential property.--The term `residential 
                property' means a property that is a multifamily 
                housing project or a single family property.
                  ``(E) Secretary.--The term `Secretary' means the 
                Secretary of Housing and Urban Development.
                  ``(F) Severe physical problems.--The term `severe 
                physical problems' means, with respect to a dwelling 
                unit, that the unit--
                          ``(i) lacks hot or cold piped water, a flush 
                        toilet, or both a bathtub and a shower in the 
                        unit, for the exclusive use of that unit;
                          ``(ii) on not less than 3 separate occasions 
                        during the preceding winter months, was 
                        uncomfortably cold for a period of more than 6 
                        consecutive hours due to a malfunction of the 
                        heating system for the unit;
                          ``(iii) has no functioning electrical 
                        service, exposed wiring, any room in which 
                        there is not a functioning electrical outlet, 
                        or has experienced 3 or more blown fuses or 
                        tripped circuit breakers during the preceding 
                        90-day period;
                          ``(iv) is accessible through a public hallway 
                        in which there are no working light fixtures, 
                        loose or missing steps or railings, and no 
                        elevator; or
                          ``(v) has severe maintenance problems, 
                        including water leaks involving the roof, 
                        windows, doors, basement, or pipes or plumbing 
                        fixtures, holes or open cracks in walls or 
                        ceilings, severe paint peeling or broken 
                        plaster, and signs of rodent infestation.
                  ``(G) Single family property.--The term `single 
                family property' means a 1- to 4-family residence.
                  ``(H) Substandard.--The term `substandard' means, 
                with respect to a multifamily housing project, that 25 
                percent or more of the dwelling units in the project 
                have severe physical problems.
                  ``(I) Unit of general local government.--The term 
                `unit of general local government' has the meaning 
                given such term in section 102(a) of the Housing and 
                Community Development Act of 1974.
                  ``(J) Unoccupied.--The term `unoccupied' means, with 
                respect to a residential property, that the unit of 
                general local government having jurisdiction over the 
                area in which the project is located has certified in 
                writing that the property is not inhabited.
          ``(12) Regulations.--
                  ``(A) Interim.--Not later than 30 days after the date 
                of the enactment of the American Homeownership and 
                Economic Opportunity Act of 2000, the Secretary shall 
                issue such interim regulations as are necessary to 
                carry out this subsection.
                  ``(B) Final.--Not later than 60 days after the date 
                of the enactment of the American Homeownership and 
                Economic Opportunity Act of 2000, the Secretary shall 
                issue such final regulations as are necessary to carry 
                out this subsection.''.

SEC. 802. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.

  In carrying out the program under section 204(h) of the National 
Housing Act (12 U.S.C. 1710(h)), upon the request of the chief 
executive officer of a county or the government of appropriate 
jurisdiction and not later than 60 days after such request is made, the 
Secretary of Housing and Urban Development shall designate as a 
revitalization area all portions of such county that meet the criteria 
for such designation under paragraph (3) of such section.

   TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

SECTION 901. SHORT TITLE.

  This title may be cited as the ``Private Mortgage Insurance Technical 
Corrections and Clarification Act''.

SEC. 902. CHANGES IN AMORTIZATION SCHEDULE.

  (a) Treatment of Adjustable Rate Mortgages.--The Homeowners 
Protection Act of 1998 (12 U.S.C. 4901 et seq.) is amended--
          (1) in section 2--
                  (A) in paragraph (2)(B)(i), by striking 
                ``amortization schedules'' and inserting ``the 
                amortization schedule then in effect'';
                  (B) in paragraph (16)(B), by striking ``amortization 
                schedules'' and inserting ``the amortization schedule 
                then in effect'';
                  (C) by redesignating paragraphs (6) through (16) (as 
                amended by the preceding provisions of this paragraph) 
                as paragraphs (8) through (18), respectively; and
                  (D) by inserting after paragraph (5) the following 
                new paragraph:
          ``(6) Amortization schedule then in effect.--The term 
        `amortization schedule then in effect' means, with respect to 
        an adjustable rate mortgage, a schedule established at the time 
        at which the residential mortgage transaction is consummated 
        or, if such schedule has been changed or recalculated, is the 
        most recent schedule under the terms of the note or mortgage, 
        which shows--
                  ``(A) the amount of principal and interest that is 
                due at regular intervals to retire the principal 
                balance and accrued interest over the remaining 
                amortization period of the loan; and
                  ``(B) the unpaid balance of the loan after each such 
                scheduled payment is made.''; and
          (2) in section 3(f)(1)(B)(ii), by striking ``amortization 
        schedules'' and inserting ``the amortization schedule then in 
        effect''.
  (b) Treatment of Balloon Mortgages.--Paragraph (1) of section 2 of 
the Homeowners Protection Act of 1998 (12 U.S.C. 4901(1)) is amended by 
adding at the end the following new sentence: ``A residential mortgage 
that (A) does not fully amortize over the term of the obligation, and 
(B) contains a conditional right to refinance or modify the unamortized 
principal at the maturity date of the term, shall be considered to be 
an adjustable rate mortgage for purposes of this Act.''.
  (c) Treatment of Loan Modifications.--
          (1) In general.--Section 3 of the Homeowners Protection Act 
        of 1998 (12 U.S.C. 4902) is amended--
                  (A) by redesignating subsections (d) through (f) as 
                subsections (e) through (g), respectively; and
                  (B) by inserting after subsection (c) the following 
                new subsection:
  ``(d) Treatment of Loan Modifications.--If a mortgagor and mortgagee 
(or holder of the mortgage) agree to a modification of the terms or 
conditions of a loan pursuant to a residential mortgage transaction, 
the cancellation date, termination date, or final termination shall be 
recalculated to reflect the modified terms and conditions of such 
loan.''.
          (2) Conforming amendments.--Section 4(a) of the Homeowners 
        Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
                  (A) in paragraph (1)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``section 3(f)(1)'' and inserting 
                        ``section 3(g)(1)'';
                          (ii) in subparagraph (A)(ii)(IV), by striking 
                        ``section 3(f)'' and inserting ``section 
                        3(g)''; and
                          (iii) in subparagraph (B)(iii), by striking 
                        ``section 3(f)'' and inserting ``section 
                        3(g)''; and
                  (B) in paragraph (2), by striking ``section 3(f)(1)'' 
                and inserting ``section 3(g)(1)''.

SEC. 903. DELETION OF AMBIGUOUS REFERENCES TO RESIDENTIAL MORTGAGES.

  (a) Termination of Private Mortgage Insurance.--Section 3 of the 
Homeowners Protection Act of 1998 (12 U.S.C. 4902) is amended--
          (1) in subsection (c), by inserting ``on residential mortgage 
        transactions'' after ``imposed''; and
          (2) in subsection (g) (as so redesignated by section 
        902(c)(1)(A) of this title)--
                  (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``mortgage or'';
                  (B) in paragraph (2), by striking ``mortgage or''; 
                and
                  (C) in paragraph (3), by striking ``mortgage or'' and 
                inserting ``residential mortgage or residential''.
  (b) Disclosure Requirements.--Section 4 of the Homeowners Protection 
Act of 1998 (12 U.S.C. 4903(a)) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) by striking ``mortgage or'' the first 
                        place it appears; and
                          (ii) by striking ``mortgage or'' the second 
                        place it appears and inserting ``residential''; 
                        and
                  (B) in paragraph (2), by striking ``mortgage or'' and 
                inserting ``residential'';
          (2) in subsection (c), by striking ``paragraphs (1)(B) and 
        (3) of subsection (a)'' and inserting ``subsection (a)(3)''; 
        and
          (3) in subsection (d), by inserting before the period at the 
        end the following: ``, which disclosures shall relate to the 
        mortgagor's rights under this Act''.
  (c) Disclosure Requirements for Lender-Paid Mortgage Insurance.--
Section 6 of the Homeowners Protection Act of 1998 (12 U.S.C. 4905) is 
amended--
          (1) in subsection (c)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``a residential mortgage or''; and
                  (B) in paragraph (2), by inserting ``transaction'' 
                after ``residential mortgage''; and
          (2) in subsection (d), by inserting ``transaction'' after 
        ``residential mortgage''.

SEC. 904. CANCELLATION RIGHTS AFTER CANCELLATION DATE.

  Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902) 
is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1), by 
                inserting after ``cancellation date'' the following: 
                ``or any later date that the mortgagor fulfills all of 
                the requirements under paragraphs (1) through (4)'';
                  (B) in paragraph (2), by striking ``and'' at the end;
                  (C) by redesignating paragraph (3) as paragraph (4); 
                and
                  (D) by inserting after paragraph (2) the following 
                new paragraph:
          ``(3) is current on the payments required by the terms of the 
        residential mortgage transaction; and''; and
          (2) in subsection (e)(1)(B) (as so redesignated by section 
        902(c)(1)(A) of this title), by striking ``subsection (a)(3)'' 
        and inserting ``subsection (a)(4)''.

SEC. 905. CLARIFICATION OF CANCELLATION AND TERMINATION ISSUES AND 
                    LENDER PAID MORTGAGE INSURANCE DISCLOSURE 
                    REQUIREMENTS.

  (a) Good Payment History.--Section 2(4) of the Homeowners Protection 
Act of 1998 (12 U.S.C. 4901(4)) is amended--
          (1) in subparagraph (A)--
                  (A) by inserting ``the later of (i)'' before ``the 
                date''; and
                          (ii) by inserting ``, or (ii) the date that 
                        the mortgagor submits a request for 
                        cancellation under section 3(a)(1)'' before the 
                        semicolon; and
                  (B) in subparagraph (B)--
                          (i) by inserting ``the later of (i)'' before 
                        ``the date''; and
                          (ii) by inserting ``, or (ii) the date that 
                        the mortgagor submits a request for 
                        cancellation under section 3(a)(1)'' before the 
                        period at the end.
  (b) Automatic Termination.--Paragraph (2) of section 3(b) of the 
Homeowners Protection Act of 1998 (12 U.S.C. 4902(b)(2)) is amended to 
read as follows:
          ``(2) if the mortgagor is not current on the termination 
        date, on the first day of the first month beginning after the 
        date that the mortgagor becomes current on the payments 
        required by the terms of the residential mortgage 
        transaction.''
  (c) Premium Payments.--Section 3 of the Homeowners Protection Act of 
1998 (12 U.S.C. 4902) is amended by adding at the end the following new 
subsection:
  ``(h) Accrued Obligation for Premium Payments.--The cancellation or 
termination under this section of the private mortgage insurance of a 
mortgagor shall not affect the rights of any mortgagee, servicer, or 
mortgage insurer to enforce any obligation of such mortgagor for 
premium payments accrued prior to the date on which such cancellation 
or termination occurred.''.

SEC. 906. DEFINITIONS.

  (a) Refinanced.--Section 6(c)(1)(B)(ii) of the Homeowners Protection 
Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii)) is amended by inserting after 
``refinanced'' the following: ``(under the meaning given such term in 
the regulations issued by the Board of Governors of the Federal Reserve 
System to carry out the Truth in Lending Act (15 U.S.C. 1601 et 
seq.))''.
  (b) Midpoint of the Amortization Period.--Section 2 of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4901) is amended by inserting after 
paragraph (6) (as added by section 902(a)(1)(D) of this Act) the 
following new paragraph:
          ``(7) Midpoint of the amortization period.--The term 
        `midpoint of the amortization period' means, with respect to a 
        residential mortgage transaction, the point in time that is 
        halfway through the period that begins upon the first day of 
        the amortization period established at the time a residential 
        mortgage transaction is consummated and ends upon the 
        completion of the entire period over which the mortgage is 
        scheduled to be amortized.''.
  (c) Original Value.--Section 2(12) of the Homeowners Protection Act 
of 1998 (12 U.S.C. 4901(10)) (as so redesignated by section 
902(a)(1)(C) of this Act) is amended--
          (1) by inserting ``transaction'' after ``a residential 
        mortgage''; and
          (2) by adding at the end the following new sentence: ``In the 
        case of a residential mortgage transaction for refinancing the 
        principal residence of the mortgagor, such term means only the 
        appraised value relied upon by the mortgagee to approve the 
        refinance transaction.''.
  (d) Principal Residence.--Section 2 of the Homeowners Protection Act 
of 1998 (12 U.S.C. 4901) is amended--
          (1) in paragraph (14) (as so redesignated by section 
        902(a)(1)(C) of this Act) by striking ``primary'' and inserting 
        ``principal''; and
          (2) in paragraph (15) (as so redesignated by section 
        902(a)(1)(C) of this Act) by striking ``primary'' and inserting 
        ``principal'';

                  TITLE X--RURAL HOUSING HOMEOWNERSHIP

SEC. 1001. PROMISSORY NOTE REQUIREMENT UNDER HOUSING REPAIR LOAN 
                    PROGRAM.

  The fourth sentence of section 504(a) of the Housing Act of 1949 (42 
U.S.C. 1474(a)) is amended by striking ``$2,500'' and inserting 
``$7,500''.

SEC. 1002. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM LABOR HOUSING 
                    LOANS.

  The first sentence of section 514(a) of the Housing Act of 1949 (42 
U.S.C. 1484(a)) is amended by striking ``nonprofit limited 
partnership'' and inserting ``limited partnership''.

SEC. 1003. PROJECT ACCOUNTING RECORDS AND PRACTICES.

  Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended by 
striking subsection (z) and inserting the following new subsections:
  ``(z) Accounting and Recordkeeping Requirements.--
          ``(1) Accounting standards.--The Secretary shall require that 
        borrowers in programs authorized by this section maintain 
        accounting records in accordance with generally accepted 
        accounting principles for all projects that receive funds from 
        loans made or guaranteed by the Secretary under this section.
          ``(2) Record retention requirements.--The Secretary shall 
        require that borrowers in programs authorized by this section 
        retain for a period of not less than 6 years and make available 
        to the Secretary in a manner determined by the Secretary, all 
        records required to be maintained under this subsection and 
        other records identified by the Secretary in applicable 
        regulations.
  ``(aa) Double Damages for Unauthorized Use of Housing Projects Assets 
and Income.--
          ``(1) Action to recover assets or income.--
                  ``(A) In general.--The Secretary may request the 
                Attorney General to bring an action in a United States 
                district court to recover any assets or income used by 
                any person in violation of the provisions of a loan 
                made or guaranteed by the Secretary under this section 
                or in violation of any applicable statute or 
                regulation.
                  ``(B) Improper documentation.--For purposes of this 
                subsection, a use of assets or income in violation of 
                the applicable loan, loan guarantee, statute, or 
                regulation shall include any use for which the 
                documentation in the books and accounts does not 
                establish that the use was made for a reasonable 
                operating expense or necessary repair of the project or 
                for which the documentation has not been maintained in 
                accordance with the requirements of the Secretary and 
                in reasonable condition for proper audit.
                  ``(C) Definition.--For the purposes of this 
                subsection, the term `person' means--
                          ``(i) any individual or entity that borrows 
                        funds in accordance with programs authorized by 
                        this section;
                          ``(ii) any individual or entity holding 25 
                        percent or more interest of any entity that 
                        borrows funds in accordance with programs 
                        authorized by this section; and
                          ``(iii) any officer, director, or partner of 
                        an entity that borrows funds in accordance with 
                        programs authorized by this section.
          ``(2) Amount recoverable.--
                  ``(A) In general.--In any judgment favorable to the 
                United States entered under this subsection, the 
                Attorney General may recover double the value of the 
                assets and income of the project that the court 
                determines to have been used in violation of the 
                provisions of a loan made or guaranteed by the 
                Secretary under this section or any applicable statute 
                or regulation, plus all costs related to the action, 
                including reasonable attorney and auditing fees.
                  ``(B) Application of recovered funds.--
                Notwithstanding any other provision of law, the 
                Secretary may use amounts recovered under this 
                subsection for activities authorized under this section 
                and such funds shall remain available for such use 
                until expended.
          ``(3) Time limitation.--Notwithstanding any other provision 
        of law, an action under this subsection may be commenced at any 
        time during the 6-year period beginning on the date that the 
        Secretary discovered or should have discovered the violation of 
        the provisions of this section or any related statutes or 
        regulations.
          ``(4) Continued availability of other remedies.--The remedy 
        provided in this subsection is in addition to and not in 
        substitution of any other remedies available to the Secretary 
        or the United States.''.

SEC. 1004. DEFINITION OF RURAL AREA.

  The second sentence of section 520 of the Housing Act of 1949 (42 
U.S.C. 1490) is amended by striking ``year 2000'' and inserting ``year 
2010''.

SEC. 1005. OPERATING ASSISTANCE FOR MIGRANT FARMWORKERS PROJECTS.

  The last sentence of section 521(a)(5)(A) of the Housing Act of 1949 
(42 U.S.C. 1490a(a)(5)(A)) is amended by striking ``project'' and 
inserting ``tenant or unit''.

SEC. 1006. MULTIFAMILY RENTAL HOUSING LOAN GUARANTEE PROGRAM.

  Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) is 
amended--
          (1) in subsection (c), by inserting ``an Indian 
        organization,'' after ``thereof,'';
          (2) in subsection (f), by striking paragraph (1) and 
        inserting the following new paragraph:
          ``(1) be made for a period of not less than 25 nor greater 
        than 40 years from the date the loan was made and may provide 
        for amortization of the loan over a period of not to exceed 40 
        years with a final payment of the balance due at the end of the 
        loan term;'';
          (3) in subsection (i)(2), by striking ``(A) conveyance to the 
        Secretary'' and all that follows through ``(C) assignment'' and 
        inserting ``(A) submission to the Secretary of a claim for 
        payment under the guarantee, and (B) assignment'';
          (4) in subsection (s), by adding at the end the following new 
        subsection:
          ``(4) Indian organization.--The term `Indian organization' 
        means the governing body of an Indian tribe, band, group, 
        pueblo, or community, including native villages or native 
        groups, as defined by the Alaska Claims Settlement Act (43 
        U.S.C. 1601 et seq.), (including corporations organized by the 
        Kenai, Juneau, Sitka, and Kodiak) which is eligible for 
        services from the Bureau of Indian Affairs or an entity 
        established or recognized by the governing body for the purpose 
        of financing economic development.'';
          (5) in subsection (t), by inserting before the period at the 
        end the following: ``to provide guarantees under this section 
        for eligible loans having an aggregate principal amount of 
        $500,000,000'';
          (6) by striking subsection (l);
          (7) by redesignating subsections (m) through (u) as 
        subsections (l) through (t), respectively;
          (8) by adding at the end the following new subsections:
  ``(u) Fee Authority.--
          ``(1) In general.--Any amounts collected by the Secretary 
        pursuant to the fees charged to lenders for loan guarantees 
        issued under this section shall be used to offset costs (as 
        defined by section 502 of the Congressional Budget Act of 1974 
        (2 U.S.C. 661a)) of loan guarantees made under this section.
          ``(2) Excess funds.--Any fees described in paragraph (1) 
        collected in excess of the amount required in paragraph (1) 
        during a fiscal year, shall be available to the Secretary, 
        without further appropriation and without fiscal year 
        limitation, for use by the Secretary for costs of administering 
        (including monitoring) program activities authorized pursuant 
        to this section and shall be in addition to other funds made 
        available for this purpose.
  ``(v) Defaults of Loans Secured by Reservation Lands.--In the event 
of a default involving a loan to an Indian tribe or tribal corporation 
made under this section which is secured by an interest in land within 
such tribe's reservation (as determined by the Secretary of the 
Interior), including a community in Alaska incorporated by the 
Secretary of the Interior pursuant to the Indian Reorganization Act (25 
U.S.C. 461 et seq.), the lender shall only pursue liquidation after 
offering to transfer the account to an eligible tribal member, the 
tribe, or the Indian housing authority serving the tribe. If the lender 
subsequently proceeds to liquidate the account, the lender shall not 
sell, transfer, or otherwise dispose of or alienate the property except 
to one of the entities described in the preceding sentence.''.

SEC. 1007. ENFORCEMENT PROVISIONS.

  (a) In General.--Title V of the Housing Act of 1949 (42 U.S.C. 1471 
et seq.) is amended by adding after section 542 the following:

``SEC. 543. ENFORCEMENT PROVISIONS.

  ``(a) Equity Skimming.--
          ``(1) Criminal penalty.--Whoever, as an owner, agent, 
        employee, or manager, or is otherwise in custody, control, or 
        possession of property that is security for a loan made or 
        guaranteed under this title, willfully uses, or authorizes the 
        use, of any part of the rents, assets, proceeds, income, or 
        other funds derived from such property, for any purpose other 
        than to meet actual, reasonable, and necessary expenses of the 
        property, or for any other purpose not authorized by this title 
        or the regulations adopted pursuant to this title, shall be 
        fined under title 18, United States Code, or imprisoned not 
        more than 5 years, or both.
          ``(2) Civil sanctions.--An entity or individual who as an 
        owner, operator, employee, or manager, or who acts as an agent 
        for a property that is security for a loan made or guaranteed 
        under this title where any part of the rents, assets, proceeds, 
        income, or other funds derived from such property are used for 
        any purpose other than to meet actual, reasonable, and 
        necessary expenses of the property, or for any other purpose 
        not authorized by this title or the regulations adopted 
        pursuant to this title, shall be subject to a fine of not more 
        than $25,000 per violation. The sanctions provided in this 
        paragraph may be imposed in addition to any other civil 
        sanctions or civil monetary penalties authorized by law.
  ``(b) Civil Monetary Penalties.--
          ``(1) In general.--The Secretary may, after notice and 
        opportunity for a hearing, impose a civil monetary penalty in 
        accordance with this subsection against any individual or 
        entity, including its owners, officers, directors, general 
        partners, limited partners, or employees, who knowingly and 
        materially violate, or participate in the violation of, the 
        provisions of this title, the regulations issued by the 
        Secretary pursuant to this title, or agreements made in 
        accordance with this title, by--
                  ``(A) submitting information to the Secretary that is 
                false;
                  ``(B) providing the Secretary with false 
                certifications;
                  ``(C) failing to submit information requested by the 
                Secretary in a timely manner;
                  ``(D) failing to maintain the property subject to 
                loans made or guaranteed under this title in good 
                repair and condition, as determined by the Secretary;
                  ``(E) failing to provide management for a project 
                which received a loan made or guaranteed under this 
                title that is acceptable to the Secretary; or
                  ``(F) failing to comply with the provisions of 
                applicable civil rights statutes and regulations.
          ``(2) Conditions for renewal or extension.--The Secretary may 
        require that expiring loan or assistance agreements entered 
        into under this title shall not be renewed or extended unless 
        the owner executes an agreement to comply with additional 
        conditions prescribed by the Secretary, or executes a new loan 
        or assistance agreement in the form prescribed by the 
        Secretary.
          ``(3) Amount.--
                  ``(A) In general.--The amount of a civil monetary 
                penalty imposed under this subsection shall not exceed 
                the greater of--
                          ``(i) twice the damages the Department of 
                        Agriculture, the guaranteed lender, or the 
                        project that is secured for a loan under this 
                        section suffered or would have suffered as a 
                        result of the violation; or
                          ``(ii) $50,000 per violation.
                  ``(B) Determination.--In determining the amount of a 
                civil monetary penalty under this subsection, the 
                Secretary shall take into consideration--
                          ``(i) the gravity of the offense;
                          ``(ii) any history of prior offenses by the 
                        violator (including offenses occurring prior to 
                        the enactment of this section);
                          ``(iii) the ability of the violator to pay 
                        the penalty;
                          ``(iv) any injury to tenants;
                          ``(v) any injury to the public;
                          ``(vi) any benefits received by the violator 
                        as a result of the violation;
                          ``(vii) deterrence of future violations; and
                          ``(viii) such other factors as the Secretary 
                        may establish by regulation.
          ``(4) Payment of penalties.--No payment of a penalty assessed 
        under this section may be made from funds provided under this 
        title or from funds of a project which serve as security for a 
        loan made or guaranteed under this title.
          ``(5) Remedies for noncompliance.--
                  ``(A) Judicial intervention.--If a person or entity 
                fails to comply with a final determination by the 
                Secretary imposing a civil monetary penalty under this 
                subsection, the Secretary may request the Attorney 
                General of the United States to bring an action in an 
                appropriate United States district court to obtain a 
                monetary judgment against such individual or entity and 
                such other relief as may be available. The monetary 
                judgment may, in the court's discretion, include the 
                attorney's fees and other expenses incurred by the 
                United States in connection with the action.
                  ``(B) Reviewability of determination.--In an action 
                under this paragraph, the validity and appropriateness 
                of a determination by the Secretary imposing the 
                penalty shall not be subject to review.''.
  (b) Conforming Amendment.--Section 514 of the Housing Act of 1949 (42 
U.S.C. 1484) is amended by striking subsection (j).

SEC. 1008. AMENDMENTS TO TITLE 18 OF UNITED STATES CODE.

  (a) Money Laundering.--Section 1956(c)(7)(D) of title 18, United 
States Code, is amended by inserting ``any violation of section 
543(a)(1) of the Housing Act of 1949 (relating to equity skimming),'' 
after ``coupons having a value of not less than $5,000,''.
  (b) Obstruction of Federal Audits.--Section 1516(a) of title 18, 
United States Code, is amended by inserting ``or relating to any 
property that is security for a loan that is made or guaranteed under 
title V of the Housing Act of 1949,'' before ``shall be fined under 
this title''.

               TITLE XI--MANUFACTURED HOUSING IMPROVEMENT

SEC. 1101. SHORT TITLE AND REFERENCES.

  (a) Short Title.--This title may be cited as the ``Manufactured 
Housing Improvement Act''.
  (b) References.--Whenever in this title an amendment is expressed in 
terms of an amendment to, or repeal of, an Act, a section, or any other 
provision, the reference shall be considered to be made to that section 
or other provision of the National Manufactured Housing Construction 
and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).

SEC. 1102. FINDINGS AND PURPOSES.

  Section 602 (42 U.S.C. 5401) is amended to read as follows:
                        ``findings and purposes
  ``Sec. 602. (a) Findings.--The Congress finds that--
          ``(1) manufactured housing plays a vital role in meeting the 
        housing needs of the Nation; and
          ``(2) manufactured homes provide a significant resource for 
        affordable homeownership and rental housing accessible to all 
        Americans.
  ``(b) Purposes.--The purposes of this title are--
          ``(1) to facilitate the acceptance of the quality, 
        durability, safety, and affordability of manufactured housing 
        within the Department of Housing and Urban Development;
          ``(2) to facilitate the availability of affordable 
        manufactured homes and to increase homeownership for all 
        Americans;
          ``(3) to provide for the establishment of practical, uniform, 
        and, to the extent possible, performance-based Federal 
        construction standards;
          ``(4) to encourage innovative and cost-effective construction 
        techniques;
          ``(5) to protect owners of manufactured homes from 
        unreasonable risk of personal injury and property damage;
          ``(6) to establish a balanced consensus process for the 
        development, revision, and interpretation of Federal 
        construction and safety standards for manufactured homes and 
        related regulations for the enforcement of such standards;
          ``(7) to ensure uniform and effective enforcement of Federal 
        construction and safety standards for manufactured homes; and
          ``(8) to ensure that the public interest in, and need for, 
        affordable manufactured housing is duly considered in all 
        determinations relating to the Federal standards and their 
        enforcement.''.

SEC. 1103. DEFINITIONS.

  (a) In General.--Section 603 (42 U.S.C. 5402) is amended--
          (1) in paragraph (2), by striking ``dealer'' and inserting 
        ``retailer'';
          (2) in paragraph (12), by striking ``and'' at the end;
          (3) in paragraph (13), by striking the period at the end and 
        inserting a semicolon; and
          (4) by adding at the end the following new paragraphs:
          ``(14) `administering organization' means the recognized, 
        voluntary, private sector, consensus standards body with 
        specific experience in developing model residential building 
        codes and standards involving all disciplines regarding 
        construction and safety that administers the consensus 
        standards development process;
          ``(15) `consensus committee' means the committee established 
        under section 604(a)(3);
          ``(16) `consensus standards development process' means the 
        process by which additions, revisions, and interpretations to 
        the Federal manufactured home construction and safety standards 
        and enforcement regulations shall be developed and recommended 
        to the Secretary by the consensus committee;
          ``(17) `primary inspection agency' means a State agency or 
        private organization that has been approved by the Secretary to 
        act as a design approval primary inspection agency or a 
        production inspection primary inspection agency, or both;
          ``(18) `design approval primary inspection agency' means a 
        State agency or private organization that has been approved by 
        the Secretary to evaluate and either approve or disapprove 
        manufactured home designs and quality control procedures;
          ``(19) `production inspection primary inspection agency' 
        means a State agency or private organization that has been 
        approved by the Secretary to evaluate the ability of 
        manufactured home manufacturing plants to comply with approved 
        quality control procedures and with the Federal manufactured 
        home construction and safety standards promulgated hereunder;
          ``(20) `installation standards' means reasonable 
        specifications for the installation of a manufactured home, at 
        the place of occupancy, to ensure proper siting, the joining of 
        all sections of the home, and the installation of 
        stabilization, support, or anchoring systems; and
          ``(21) `monitoring'--
                  ``(A) means the process of periodic review of the 
                primary inspection agencies, by the Secretary or by a 
                State agency under an approved State plan pursuant to 
                section 623, in accordance with regulations recommended 
                by the consensus committee and promulgated in 
                accordance with section 604(b), which process shall be 
                for the purpose of ensuring that the primary inspection 
                agencies are discharging their duties under this title; 
                and
                  ``(B) may include the periodic inspection of retail 
                locations for transit damage, label tampering, and 
                retailer compliance with this title.''.
  (b) Conforming Amendments.--The Act is amended--
          (1) in section 613 (42 U.S.C. 5412), by striking ``dealer'' 
        each place it appears and inserting ``retailer'';
          (2) in section 614(f) (42 U.S.C. 5413(f)), by striking 
        ``dealer'' each place it appears and inserting ``retailer'';
          (3) in section 615 (42 U.S.C. 5414)--
                  (A) in subsection (b)(1), by striking ``dealer'' and 
                inserting ``retailer'';
                  (B) in subsection (b)(3), by striking ``dealer or 
                dealers'' and inserting ``retailer or retailers''; and
                  (C) in subsections (d) and (f), by striking 
                ``dealers'' each place it appears and inserting 
                ``retailers'';
          (4) in section 616 (42 U.S.C. 5415), by striking ``dealer'' 
        and inserting ``retailer''; and
          (5) in section 623(c)(9), by striking ``dealers'' and 
        inserting ``retailers''.

SEC. 1104. FEDERAL MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS.

  Section 604 (42 U.S.C. 5403) is amended--
          (1) by striking subsections (a) and (b) and inserting the 
        following new subsections:
  ``(a) Establishment.--
          ``(1) Authority.--The Secretary shall establish, by order, 
        appropriate Federal manufactured home construction and safety 
        standards, each of which--
                  ``(A) shall--
                          ``(i) be reasonable and practical;
                          ``(ii) meet high standards of protection 
                        consistent with the enumerated purposes of this 
                        title; and
                          ``(iii) where appropriate, be performance-
                        based and objectively stated; and
                  ``(B) except as provided in subsection (b), shall be 
                established in accordance with the consensus standards 
                development process.
          ``(2) Consensus standards and regulatory development 
        process.--
                  ``(A) Initial agreement.--Not later than 180 days 
                after the date of enactment of the Manufactured Housing 
                Improvement Act, the Secretary shall enter into a 
                contract with an administering organization. The 
                contractual agreement shall--
                          ``(i) terminate on the date on which a 
                        contract is entered into under subparagraph 
                        (B); and
                          ``(ii) require the administering organization 
                        to--
                                  ``(I) appoint the initial members of 
                                the consensus committee under paragraph 
                                (3);
                                  ``(II) administer the consensus 
                                standards development process until the 
                                termination of that agreement; and
                                  ``(III) administer the consensus 
                                development and interpretation process 
                                for procedural and enforcement 
                                regulations and regulations specifying 
                                the permissible scope and conduct of 
                                monitoring until the termination of 
                                that agreement.
                  ``(B) Competitively procured contract.--Upon the 
                expiration of the 4-year period beginning on the date 
                on which all members of the consensus committee are 
                appointed under paragraph (3), the Secretary shall, 
                using competitive procedures (as such term is defined 
                in section 4 of the Office of Federal Procurement 
                Policy Act), enter into a competitively awarded 
                contract with an administering organization. The 
                administering organization shall administer the 
                consensus process for the development and 
                interpretation of the Federal standards, the procedural 
                and enforcement regulations and regulations specifying 
                the permissible scope and conduct of monitoring in 
                accordance with this title.
                  ``(C) Performance review.--The Secretary--
                          ``(i) shall periodically review the 
                        performance of the administering organization; 
                        and
                          ``(ii) may replace the administering 
                        organization with another qualified technical 
                        or building code organization, pursuant to 
                        competitive procedures, if the Secretary 
                        determines in writing that the administering 
                        organization is not fulfilling the terms of the 
                        agreement or contract to which the 
                        administering organization is subject or upon 
                        the expiration of the agreement or contract.
          ``(3) Consensus committee.--
                  ``(A) Purpose.--There is established a committee to 
                be known as the `consensus committee', which shall, in 
                accordance with this title--
                          ``(i) provide periodic recommendations to the 
                        Secretary to adopt, revise, and interpret the 
                        Federal manufactured housing construction and 
                        safety standards in accordance with this 
                        subsection;
                          ``(ii) provide periodic recommendations to 
                        the Secretary to adopt, revise, and interpret 
                        the procedural and enforcement regulations, 
                        including regulations specifying the 
                        permissible scope and conduct of monitoring in 
                        accordance with this subsection; and
                          ``(iii) be organized and carry out its 
                        business in a manner that guarantees a fair 
                        opportunity for the expression and 
                        consideration of various positions and for 
                        public participation.
                  ``(B) Membership.--The consensus committee shall be 
                composed of--
                          ``(i) 21 voting members appointed, subject to 
                        approval by the Secretary, by the administering 
                        organization from among individuals who are 
                        qualified by background and experience to 
                        participate in the work of the consensus 
                        committee; and
                          ``(ii) 1 member appointed by the Secretary to 
                        represent the Secretary on the consensus 
                        committee, who shall be a nonvoting member.
                  ``(C) Disapproval.--The Secretary may disapprove, in 
                writing with the reasons set forth, the appointment of 
                an individual under subparagraph (B)(i).
                  ``(D) Selection procedures and requirements.--Each 
                member shall be appointed in accordance with the 
                selection procedures, which shall be established by the 
                Secretary and which shall be based on the procedures 
                for consensus committees promulgated by the American 
                National Standards Institute (or successor 
                organization), to ensure equal representation on the 
                consensus committee of the following interest 
                categories:
                          ``(i) Producers.--7 producers or retailers of 
                        manufactured housing.
                          ``(ii) Users.--7 persons representing 
                        consumer interests, such as consumer 
                        organizations, recognized consumer leaders, and 
                        owners who are residents of manufactured homes.
                          ``(iii) General interest and public 
                        officials.--7 general interest and public 
                        official members.
                  ``(E) Balancing of interests.--
                          ``(i) In general.--In order to achieve a 
                        proper balance of interests on the consensus 
                        committee--
                                  ``(I) the administering organization 
                                in its appointments shall ensure that 
                                all directly and materially affected 
                                interests have the opportunity for fair 
                                and equitable participation without 
                                dominance by any single interest; and
                                  ``(II) the Secretary may reject the 
                                appointment of any 1 or more 
                                individuals in order to ensure that 
                                there is not dominance by any single 
                                interest.
                          ``(ii) Dominance defined.--In this 
                        subparagraph, the term `dominance' means a 
                        position or exercise of dominant authority, 
                        leadership, or influence by reason of superior 
                        leverage, strength, or representation.
                  ``(F) Additional qualifications.--
                          ``(i) Financial independence.--No individual 
                        appointed under subparagraph (D)(ii) shall 
                        have, and 3 of individuals appointed under 
                        subparagraph (D)(iii) shall not have--
                                  ``(I) a significant financial 
                                interest in any segment of the 
                                manufactured housing industry; or
                                  ``(II) a significant relationship to 
                                any person engaged in the manufactured 
                                housing industry.
                          ``(ii) Post-employment ban.--An individual 
                        appointed under clause (ii) or (iii) of 
                        subparagraph (D) shall be subject to a ban 
                        disallowing compensation from the manufactured 
                        housing industry during the period of, and for 
                        the 1-year period after, membership of that 
                        individual on the consensus committee.
                  ``(G) Meetings.--
                          ``(i) Notice; open to public.--The consensus 
                        committee shall provide advance notice of each 
                        meeting of the consensus committee to the 
                        Secretary and publish advance notice of each 
                        such meeting in the Federal Register. All 
                        meetings of the consensus committee shall be 
                        open to the public.
                          ``(ii) Reimbursement.--Members of the 
                        consensus committee in attendance at the 
                        meetings shall be reimbursed for their actual 
                        expenses as authorized by section 5703 of title 
                        5, United States Code, for persons employed 
                        intermittently in Government service.
                  ``(H) Inapplicability of other laws.--
                          ``(i) Advisory committee act.--The consensus 
                        committee shall not be considered to be an 
                        advisory committee for purposes of the Federal 
                        Advisory Committee Act.
                          ``(ii) Title 18.--The members of the 
                        consensus committee shall not be subject to 
                        section 203, 205, 207, or 208 of title 18, 
                        United States Code, to the extent of their 
                        proper participation as members of the 
                        consensus committee.
                          ``(iii) Ethics in government act of 1978.--
                        The Ethics in Government Act of 1978 shall not 
                        apply to members of the consensus committee to 
                        the extent of their proper participation as 
                        members of the consensus committee.
                  ``(I) Administration.--The consensus committee and 
                the administering organization shall--
                          ``(i) operate in conformance with the 
                        procedures established by the American National 
                        Standards Institute for the development and 
                        coordination of American National Standards; 
                        and
                          ``(ii) apply to the American National 
                        Standards Institute and take such other actions 
                        as may be necessary to obtain accreditation 
                        from the American National Standards Institute.
                  ``(J) Staff.--The administering organization shall, 
                upon the request of the consensus committee, provide 
                reasonable staff resources to the consensus committee. 
                Upon a showing of need, the Secretary shall furnish 
                technical support to any of the various interest 
                categories on the consensus committee.
                  ``(K) Date of initial appointments.--The initial 
                appointments of all of the members of the consensus 
                committee shall be completed not later than 90 days 
                after the date on which an administration agreement 
                under paragraph (2)(A) is completed with the 
                administering organization.
          ``(4) Revisions of standards.--
                  ``(A) In general.--Beginning on the date on which all 
                members of the consensus committee are appointed under 
                paragraph (3), the consensus committee shall, not less 
                than once during each 2-year period--
                          ``(i) consider revisions to the Federal 
                        manufactured home construction and safety 
                        standards; and
                          ``(ii) submit proposed revised standards and 
                        regulations, if approved in a vote of the 
                        consensus committee by two-thirds of the 
                        members, to the Secretary in the form of a 
                        proposed rule, including an economic analysis.
                  ``(B) Publication of proposed revised standards.--
                          ``(i) Publication by secretary.--The 
                        consensus committee shall provide a proposed 
                        revised standard under subparagraph (A)(ii) to 
                        the Secretary who shall, not later than 30 days 
                        after receipt, publish such proposed revised 
                        standard in the Federal Register for notice and 
                        comment. Unless clause (ii) applies, the 
                        Secretary shall provide an opportunity for 
                        public comment on such proposed revised 
                        standard and any such comments shall be 
                        submitted directly to the consensus committee 
                        without delay.
                          ``(ii) Publication of rejected proposed 
                        revised standard.--If the Secretary rejects the 
                        proposed revised standard, the Secretary shall 
                        publish the rejected proposed revised standard 
                        in the Federal Register with the reasons for 
                        rejection and any recommended modifications set 
                        forth.
                  ``(C) Presentation of public comments; publication of 
                recommended revisions.--
                          ``(i) Presentation.--Any public comments, 
                        views, and objections to a proposed revised 
                        standard published under subparagraph (B) shall 
                        be presented by the Secretary to the consensus 
                        committee upon their receipt and in the manner 
                        received, in accordance with procedures 
                        established by the American National Standards 
                        Institute.
                          ``(ii) Publication by the secretary.--The 
                        consensus committee shall provide to the 
                        Secretary any revisions proposed by the 
                        consensus committee, which the Secretary shall, 
                        not later than 7 calendar days after receipt, 
                        cause to be published in the Federal Register 
                        as a notice of the recommended revisions of the 
                        consensus committee to the standard, a notice 
                        of the submission of the recommended revisions 
                        to the Secretary, and a description of the 
                        circumstances under which the proposed revised 
                        standards could become effective.
                          ``(iii) Publication of rejected proposed 
                        revised standard.--If the Secretary rejects the 
                        proposed revised standard, the Secretary shall 
                        publish the rejected proposed revised standard 
                        in the Federal Register with the reasons for 
                        rejection and any recommended modifications set 
                        forth.
          ``(5) Review by the secretary.--
                  ``(A) In general.--The Secretary shall either adopt, 
                modify, or reject a standard, as submitted by the 
                consensus committee under paragraph (4)(A).
                  ``(B) Timing.--Not later than 12 months after the 
                date on which a standard is submitted to the Secretary 
                by the consensus committee, the Secretary shall take 
                action regarding such standard under subparagraph (C).
                  ``(C) Procedures.--If the Secretary--
                          ``(i) adopts a standard recommended by the 
                        consensus committee, the Secretary shall--
                                  ``(I) issue a final order without 
                                further rulemaking; and
                                  ``(II) cause the final order to be 
                                published in the Federal Register;
                          ``(ii) determines that any standard should be 
                        rejected, the Secretary shall--
                                  ``(I) reject the standard; and
                                  ``(II) cause to be published in the 
                                Federal Register a notice to that 
                                effect, together with the reason or 
                                reasons for rejecting the proposed 
                                standard; or
                          ``(iii) determines that a standard 
                        recommended by the consensus committee should 
                        be modified, the Secretary shall--
                                  ``(I) cause the proposed modified 
                                standard to be published in the Federal 
                                Register, together with an explanation 
                                of the reason or reasons for the 
                                determination of the Secretary; and
                                  ``(II) provide an opportunity for 
                                public comment in accordance with 
                                section 553 of title 5, United States 
                                Code.
                  ``(D) Final order.--Any final standard under this 
                paragraph shall become effective pursuant to subsection 
                (c).
          ``(6) Failure to act.--If the Secretary fails to take final 
        action under paragraph (5) and to publish notice of the action 
        in the Federal Register before the expiration of the 12-month 
        period beginning on the date on which the proposed standard is 
        submitted to the Secretary under paragraph (4)(A)--
                  ``(A) the recommendations of the consensus 
                committee--
                          ``(i) shall be considered to have been 
                        adopted by the Secretary; and
                          ``(ii) shall take effect upon the expiration 
                        of the 180-day period that begins upon the 
                        conclusion of such 12-month period; and
                  ``(B) not later than 10 days after the expiration of 
                such 12-month period, the Secretary shall cause to be 
                published in the Federal Register a notice of the 
                failure of the Secretary to act, the revised standard, 
                and the effective date of the revised standard, which 
                notice shall be deemed to be an order of the Secretary 
                approving the revised standards proposed by the 
                consensus committee.
  ``(b) Other Orders.--
          ``(1) Regulations.--The Secretary may issue procedural and 
        enforcement regulations as necessary to implement the 
        provisions of this title. The consensus committee may submit to 
        the Secretary proposed procedural and enforcement regulations 
        and recommendations for the revision of such regulations.
          ``(2) Interpretative bulletins.--The Secretary may issue 
        interpretative bulletins to clarify the meaning of any Federal 
        manufactured home construction and safety standard or 
        procedural and enforcement regulation. The consensus committee 
        may submit to the Secretary proposed interpretative bulletins 
        to clarify the meaning of any Federal manufactured home 
        construction and safety standard or procedural and enforcement 
        regulation.
          ``(3) Review by consensus committee.--Before issuing a 
        procedural or enforcement regulation or an interpretative 
        bulletin--
                  ``(A) the Secretary shall--
                          ``(i) submit the proposed procedural or 
                        enforcement regulation or interpretative 
                        bulletin to the consensus committee; and
                          ``(ii) provide the consensus committee with a 
                        period of 120 days to submit written comments 
                        to the Secretary on the proposed procedural or 
                        enforcement regulation or the interpretative 
                        bulletin; and
                  ``(B) if the Secretary rejects any significant 
                comment provided by the consensus committee under 
                subparagraph (A), the Secretary shall provide a written 
                explanation of the reasons for the rejection to the 
                consensus committee; and
                  ``(C) following compliance with subparagraphs (A) and 
                (B), the Secretary shall--
                          ``(i) cause the proposed regulation or 
                        interpretative bulletin and the consensus 
                        committee's written comments along with the 
                        Secretary's response thereto to be published in 
                        the Federal Register; and
                          ``(ii) provide an opportunity for public 
                        comment in accordance with section 553 of title 
                        5, United States Code.
          ``(4) Required action.--The Secretary shall act on any 
        proposed regulation or interpretative bulletin submitted by the 
        consensus committee by approving or rejecting the proposal 
        within 120 days from the date the proposal is received by the 
        Secretary. The Secretary shall either--
                  ``(A) approve the proposal and cause the proposed 
                regulation or interpretative bulletin to be published 
                for public comment in accordance with section 553 of 
                title 5, United States Code; or
                  ``(B) reject the proposed regulation or 
                interpretative bulletin and--
                          ``(i) provide a written explanation of the 
                        reasons for rejection to the consensus 
                        committee; and
                          ``(ii) cause the proposed regulation and the 
                        written explanation for the rejection to be 
                        published in the Federal Register.
          ``(5) Emergency orders.--If the Secretary determines, in 
        writing, that such action is necessary in order to respond to 
        an emergency which jeopardizes the public health or safety, or 
        to address an issue on which the Secretary determines that the 
        consensus committee has not made a timely recommendation, 
        following a request by the Secretary, the Secretary may issue 
        an order that is not developed under the procedures set forth 
        in subsection (a) or in this subsection, if the Secretary--
                  ``(A) provides to the consensus committee a written 
                description and sets forth the reasons why emergency 
                action is necessary and all supporting documentation; 
                and
                  ``(B) issues and publishes the order in the Federal 
                Register.
          ``(6) Changes.--Any statement of policies, practices, or 
        procedures relating to construction and safety standards, 
        inspections, monitoring, or other enforcement activities which 
        constitutes a statement of general or particular applicability 
        and future offset and decisions to implement, interpret, or 
        prescribe law of policy by the Secretary is subject to the 
        provisions of subsection (a) or (b) of this subsection. Any 
        change adopted in violation of the provisions of subsection (a) 
        or (b) of this subsection is void.
          ``(7) Transition.--Until the date that the consensus 
        committee is appointed pursuant to section 1104(a)(3), the 
        Secretary may issue proposed orders that are not developed 
        under the procedures set forth in this section for new and 
        revised standards.'';
          (2) in subsection (d), by adding at the end the following: 
        ``Federal preemption under this subsection shall be broadly and 
        liberally construed to ensure that disparate State or local 
        requirements or standards do not affect the uniformity and 
        comprehensiveness of the standards promulgated hereunder nor 
        the Federal superintendence of the manufactured housing 
        industry as established by this title. Subject to section 605, 
        there is reserved to each State the right to establish 
        standards for the stabilizing and support systems of 
        manufactured homes sited within that State, and for the 
        foundations on which manufactured homes sited within that State 
        are installed, and the right to enforce compliance with such 
        standards, except that such standards shall be consistent with 
        the purposes of this title and shall be consistent with the 
        design of the manufacturer.'';
          (3) by striking subsection (e);
          (4) in subsection (f), by striking the subsection designation 
        and all of the matter that precedes paragraph (1) and inserting 
        the following:
  ``(e) Considerations in Establishing and Interpreting Standards and 
Regulations.--The consensus committee, in recommending standards, 
regulations, and interpretations, and the Secretary, in establishing 
standards or regulations, or issuing interpretations under this 
section, shall--'';
          (5) by striking subsection (g);
          (6) in the first sentence of subsection (j), by striking 
        ``subsection (f)'' and inserting ``subsection (e)''; and
          (7) by redesignating subsections (h), (i), and (j), as 
        subsections (f), (g), and (h), respectively.

SEC. 1105. ABOLISHMENT OF NATIONAL MANUFACTURED HOME ADVISORY COUNCIL; 
                    MANUFACTURED HOME INSTALLATION.

  (a) In General.--Section 605 (42 U.S.C. 5404) is amended to read as 
follows:

``SEC. 605. MANUFACTURED HOME INSTALLATION.

  ``(a) Provision of Installation Design and Instructions.--A 
manufacturer shall provide with each manufactured home, design and 
instructions for the installation of the manufactured home that have 
been approved by a design approval primary inspection agency. After 
establishment of model standards under subsection (b)(2), a design 
approval primary inspection agency may not give such approval unless a 
design and instruction provides equal or greater protection than the 
protection provided under such model standards.
  ``(b) Model Manufactured Home Installation Standards.--
          ``(1) Proposed model standards.--Not later than 18 months 
        after the date on which the initial appointments of all of the 
        members of the consensus committee are completed, the consensus 
        committee shall develop and submit to the Secretary proposed 
        model manufactured home installation standards, which shall, to 
        the maximum extent possible, taking into account the factors 
        described in section 604(e), be consistent with--
                  ``(A) the home designs that have been approved by a 
                design approval primary inspection agency; and
                  ``(B) the designs and instructions for the 
                installation of manufactured homes provided by 
                manufacturers under subsection (a).
          ``(2) Establishment of model standards.--Not later than 12 
        months after receiving the proposed model standards submitted 
        under paragraph (1), the Secretary shall develop and establish 
        model manufactured home installation standards, which shall be 
        consistent with--
                  ``(A) the home designs that have been approved by a 
                design approval primary inspection agency; and
                  ``(B) the designs and instructions for the 
                installation of manufactured homes provided by 
                manufacturers under subsection (a).
          ``(3) Factors for consideration.--
                  ``(A) Consensus committee.--In developing the 
                proposed model standards under paragraph (1), the 
                consensus committee shall consider the factors 
                described in section 604(e).
                  ``(B) Secretary.--In developing and establishing the 
                model standards under paragraph (2), the Secretary 
                shall consider the factors described in section 604(e).
  ``(c) Manufactured Home Installation Programs.--
          ``(1) Protection of manufactured housing residents during 
        initial period.--During the 5-year period beginning on the date 
        of enactment of the Manufactured Housing Improvement Act, no 
        State or manufacturer may establish or implement any 
        installation standards that, in the determination of the 
        Secretary, provide less protection to the residents of 
        manufactured homes than the protection provided by the 
        installation standards in effect with respect to the State or 
        manufacturer, as applicable, on the date of enactment of the 
        Manufactured Housing Improvement Act.
          ``(2) Installation standards.--
                  ``(A) Establishment of installation program.--Not 
                later than the expiration of the 5-year period 
                described in paragraph (1), the Secretary shall 
                establish an installation program that meets the 
                requirements of paragraph (3) for the enforcement of 
                installation standards in each State described in 
                subparagraph (B).
                  ``(B) Implementation of installation program.--
                Beginning on the expiration of the 5-year period 
                described in paragraph (1), the Secretary shall 
                implement the installation program established under 
                subparagraph (A) in each State that does not have an 
                installation program established by State law that 
                meets the requirements of paragraph (3).
                  ``(C) Contracting out of implementation.--In carrying 
                out subparagraph (B), the Secretary may contract with 
                an appropriate agent to implement the installation 
                program established under that subparagraph, except 
                that such agent shall not be a person or entity other 
                than a government, nor an affiliate or subsidiary of 
                such a person or entity, that has enteredinto a 
contract with the Secretary to implement any other regulatory program 
under this title.
          ``(3) Requirements.--An installation program meets the 
        requirements of this paragraph if it is a program regulating 
        the installation of manufactured homes that includes--
                  ``(A) installation standards that, in the 
                determination of the Secretary, provide protection to 
                the residents of manufactured homes that equals or 
                exceeds the protection provided to those residents by--
                          ``(i) the model manufactured home 
                        installation standards established under 
                        subsection (b); or
                          ``(ii) the designs and instructions provided 
                        by manufacturers under subsection (a), if the 
                        Secretary determines that such designs and 
                        instructions provide protection to the 
                        residents of the manufactured home that equals 
                        or exceeds the protection provided by the model 
                        manufactured home installation standards 
                        established under subsection (b);
                  ``(B) the training and licensing of manufactured home 
                installers; and
                  ``(C) inspection of the installation of manufactured 
                homes.''.
  (b) Conforming Amendments.--Section 623(c) (42 U.S.C. 5422(c)) is 
amended--
          (1) in paragraph (10), by striking ``and'' at the end;
          (2) by redesignating paragraph (11) as paragraph (13); and
          (3) by inserting after paragraph (10) the following:
          ``(11) with respect to any State plan submitted on or after 
        the expiration of the 5-year period beginning on the date of 
        enactment of the Manufactured Housing Improvement Act, provides 
        for an installation program established by State law that meets 
        the requirements of section 605(c)(3);''.

SEC. 1106. PUBLIC INFORMATION.

  Section 607 (42 U.S.C. 5406) is amended--
          (1) in subsection (a)--
                  (A) by inserting ``to the Secretary'' after 
                ``submit''; and
                  (B) by adding at the end the following: ``The 
                Secretary shall submit such cost and other information 
                to the consensus committee for evaluation.'';
          (2) in subsection (d), by inserting ``, the consensus 
        committee,'' after ``public''; and
          (3) by striking subsection (c) and redesignating subsections 
        (d) and (e) as subsections (c) and (d), respectively.

SEC. 1107. RESEARCH, TESTING, DEVELOPMENT, AND TRAINING.

  (a) In General.--Section 608(a) (42 U.S.C. 5407(a)) is amended--
          (1) in paragraph (2), by striking ``and'' at the end;
          (2) in paragraph (3), by striking the period at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following new paragraphs:
          ``(4) encouraging the government sponsored housing entities 
        to actively develop and implement secondary market 
        securitization programs for FHA manufactured home loans and 
        those of other loan programs, as appropriate, thereby promoting 
        the availability of affordable manufactured homes to increase 
        homeownership for all people in the United States; and
          ``(5) reviewing the programs for FHA manufactured home loans 
        and developing any changes to such programs to promote the 
        affordability of manufactured homes, including changes in loan 
        terms, amortization periods, regulations, and procedures.''.
  (b) Definitions.--Section 608 (42 U.S.C. 5407) is amended by adding 
at the end the following new subsection:
  ``(c) Definitions.--For purposes of this section, the following 
definitions shall apply:
          ``(1) Government sponsored housing entities.--The term 
        `government sponsored housing entities' means the Government 
        National Mortgage Association of the Department of Housing and 
        Urban Development, the Federal National Mortgage Association, 
        and the Federal Home Loan Mortgage Corporation.
          ``(2) FHA manufactured home loans.--The term `FHA 
        manufactured home loan' means a loan that--
                  ``(A) is insured under title I of the National 
                Housing Act and is made for the purpose of financing 
                alterations, repairs, or improvements on or in 
                connection with an existing manufactured home, the 
                purchase of a manufactured home, the purchase of a 
                manufactured home and a lot on which to place the home, 
                or the purchase only of a lot on which to place a 
                manufactured home; or
                  ``(B) otherwise insured under the National Housing 
                Act and made for or in connection with a manufactured 
                home.''.

SEC. 1108. FEES.

  Section 620 (42 U.S.C. 5419) is amended to read as follows:
                     ``authority to establish fees
  ``Sec. 620. (a) In General.--In carrying out inspections under this 
title, in developing standards and regulations pursuant to section 604, 
and in facilitating the acceptance of the affordability and 
availability of manufactured housing within the Department, the 
Secretary may--
          ``(1) establish and collect from manufactured home 
        manufacturers such reasonable fees as may be necessary to 
        offset the expenses incurred by the Secretary in connection 
        with carrying out the responsibilities of the Secretary under 
        this title, including--
                  ``(A) conducting inspections and monitoring;
                  ``(B) providing funding to States for the 
                administration and implementation of approved State 
                plans under section 623, including reasonable funding 
                for cooperative educational and training programs 
                designed to facilitate uniform enforcement under this 
                title; these funds may be paid directly to the States 
                or may be paid or provided to any person or entity 
                designated to receive and disburse such funds by 
                cooperative agreements among participating States, 
                provided that such person or entity is not otherwise an 
                agent of the Secretary under this title;
                  ``(C) providing the funding for a noncareer 
                administrator and Federal staff personnel for the 
                manufactured housing program;
                  ``(D) administering the consensus committee as set 
                forth in section 604; and
                  ``(E) facilitating the acceptance of the quality, 
                durability, safety, and affordability of manufactured 
                housing within the Department; and
          ``(2) use any fees collected under paragraph (1) to pay 
        expenses referred to in paragraph (1), which shall be exempt 
        and separate from any limitations on the Department of Housing 
        and Urban Development regarding full-time equivalent positions 
        and travel.
  ``(b) Contractors.--When using fees under this section, the Secretary 
shall ensure that separate and independent contractors are retained to 
carry out monitoring and inspection work and any other work that may be 
delegated to a contractor under this title.
  ``(c) Prohibited Use.--Fees collected under subsection (a) shall not 
be used for any purpose or activity not specifically authorized by this 
title unless such activity was already engaged in by the Secretary 
prior to the date of enactment of this title.
  ``(d) Modification.--Any fee established by the Secretary under this 
section shall only be modified pursuant to rulemaking in accordance 
with section 553 of title 5, United States Code.
  ``(e) Appropriation and Deposit of Fees.--
          ``(1) In general.--There is established in the Treasury of 
        the United States a fund to be known as the `Manufactured 
        Housing Fees Trust Fund' for deposit of all fees collected 
        pursuant to subsection (a). These fees shall be held in trust 
        for use only as provided in this title.
          ``(2) Appropriation.--Such fees shall be available for 
        expenditure only to the extent approved in an annual 
        appropriation Act.''.

SEC. 1109. DISPUTE RESOLUTION.

  Section 623(c) (42 U.S.C. 5422(c)), as amended by section 5(b) of 
this Act, is amended by inserting after paragraph (11) (as added by 
section 5(b) of this Act) the following:
          ``(12) with respect to any State plan submitted on or after 
        the expiration of the 5-year period beginning on the date of 
        enactment of the Manufactured Housing Improvement Act, provides 
        for a dispute resolution program for the timely resolution of 
        disputes between manufacturers, retailers, and installers of 
        manufactured homes regarding responsibility, and for the 
        issuance of appropriate orders, for the correction or repair of 
        defects in manufactured homes that are reported during the 1-
        year period beginning on the date of installation; and''; and
          (2) by adding at the end the following:
  ``(g) Enforcement of Dispute Resolution Standards.--
          ``(1) Establishment of dispute resolution program.--Not later 
        than the expiration of the 5-year period beginning on the date 
        of enactment of the Manufactured Housing Improvement Act, the 
        Secretary shall establish a dispute resolution program that 
        meets the requirements of subsection (c)(12) for dispute 
        resolution in each State described in paragraph (2).
          ``(2) Implementation of dispute resolution program.--
        Beginning on the expiration of the 5-year period described in 
        paragraph (1), the Secretary shall implement the dispute 
        resolution program established under paragraph (1) in each 
        State that has not established a dispute resolution program 
        that meets the requirements of subsection (c)(12).
          ``(3) Contracting out of implementation.--In carrying out 
        paragraph (2), the Secretary may contract with an appropriate 
        agent to implement the dispute resolution program established 
        under that paragraph, except that such agent shall not be a 
        person or entity other than a government, nor an affiliate or 
        subsidiary of such a person or entity, that has entered into a 
        contract with the Secretary to implement any other regulatory 
        program under this title.''.

SEC. 1110. ELIMINATION OF ANNUAL REPORT REQUIREMENT.

  The Act is amended--
          (1) by striking section 626 (42 U.S.C. 5425); and
          (2) by redesignating sections 627 and 628 (42 U.S.C. 5426, 
        5401 note) as sections 626 and 627, respectively.

SEC. 1111. EFFECTIVE DATE.

  The amendments made by this title shall take effect on the date of 
enactment of this Act, except that the amendments shall have no effect 
on any order or interpretative bulletin that is published as a proposed 
rule pursuant to section 553 of title 5, United States Code, on or 
before such date.

SEC. 1112. SAVINGS PROVISION.

  (a) Standards and Regulations.--The Federal manufactured home 
construction and safety standards (as such term is defined in section 
603 of the National Manufactured Housing Construction and Safety 
Standards Act of 1974) and all regulations pertaining thereto in effect 
immediately before the date of the enactment of this Act shall apply 
until the effective date of a standard or regulation modifying or 
superseding the existing standard or regulation which is promulgated 
under subsection (a) or (b) of section 604 of the National Manufactured 
Housing Construction and Safety Standards Act of 1974, as amended by 
this title.
  (b) Contracts.--Any contract awarded pursuant to a Request for 
Proposal issued before the date of enactment of this Act shall remain 
in effect for a period of 2 years from the date of enactment of this 
Act or for the remainder of the contract term, whichever period is 
shorter.

                     Explanation of the Legislation

    H.R. 1776, the ``American Homeownership and Economic 
Opportunity Act of 2000'' is comprehensive legislation designed 
to broaden the pathways to homeownership for our Nation's 
citizens, and to help foster the development of healthy, 
economically vibrant neighborhoods.
    The ``American Homeownership and Economic Opportunity Act 
of 2000'' encourages the removal of unnecessary regulatory 
barriers that hinder the production of affordable housing and 
drive up the costs of homeownership. Under the proposal, a 
housing impact analysis will be required before the Federal 
government issues burdensome regulations to determine if a 
significant negative impact on affordable housing will result. 
Furthermore, incentives are provided for local governments to 
better plan and reduce barriers to affordability.
    H.R. 1776 will provide localities with added flexibility 
within existing Federal housing and community development block 
grant programs to leverage public funds with private sources of 
capital. The legislation creates a loan guarantee program 
enabling local communities to tap into future Federal block 
grant funds for the development of quality, long-term 
affordable housing. Greater flexibility in the creation of 
certain ``loan pools'' consisting of private and pubic funds, 
designed to help further homeownership efforts by local 
officials, is also provided. Giving communities the flexibility 
to create homeownership programs tailored to their needs will 
enable local governments to increase the impact of their 
funding, thereby helping more of their citizens achieve 
homeownership.
    Communities are also provided with tools needed to foster 
healthy neighborhoods thorough increased homeownership 
opportunities for teachers, police officers, fire fighters and 
other municipal employees--the working middle class families 
that form the backbone of communities and are an integral 
component of the social capital of neighborhoods. In addition, 
the legislation establishes a process to transfer substandard, 
vacant, HUD (Department of Housing and Urban Development)-
foreclosed properties, many of which are located in distressed 
communities or which contribute to the decline of 
neighborhoods, to local governments and community development 
corporations for use in homeownership programs and neighborhood 
revitalization efforts.
    The legislation enables families that receive rental 
assistance through HUD's Section 8 program to become 
homeowners. Public housing authorities (PHAs) are granted 
flexibility in promoting homeownership for such families by 
authorizing the creation of programs where assistance is used 
toward the purchase of a home, rather than subsidizing rent for 
a unit. A pilot program to help Section 8 recipients with 
disabilities also is established. Provisions are included to 
facilitate homeownership for Native Americans on tribal lands 
by addressing problems arising with the conduct of title 
searches by the Bureau of Indian Affairs (BIA) in connection 
with real property transactions. The legislation permanently 
authorizes the Section 184 Loan Guarantee Program, and amends 
the ``Native American Housing and Self-Determination Act of 
1996'' to improve the functioning of the program. Provisions 
facilitating homeownership in rural areas are also included, 
specifically related to enforcement provisions, adjusting 
statutory loan requirements under the Rural Housing Service's 
(RHS) Housing Repair Loan Program from the 1970's, extension of 
the definition of rural areas through 2010, and flexible use of 
operating assistance for migrant farm-worker projects. The 
enforcement provisions will enable the RHS to adequately 
protect its multi-family housing portfolio from fraud and abuse 
by negligent or criminal borrowers. These provisions were 
developed jointly by the Administration and the U.S. Department 
of Agriculture Office of Inspector General.
    Finally, H.R. 1776 modernizes the manufactured housing 
industry by giving HUD the tools needed to enhance its 
monitoring of the industry and protection of consumers. The 
current framework for regulating the manufactured housing 
industry is severely outdated and ill-suited to address the 
needs of consumers. The provisions included in H.R. 1776 
represent a carefully crafted compromise between HUD, the 
industry, and consumers to ensure that manufactured housing 
improves as a viable affordable housing resource.

                          Legislative History

    On May 12, 1999, based on legislation which passed the 
House by voice vote in the 105th Congress, Representative Lazio 
(R-NY) joined with Representative Leach (R-IA) to introduce 
H.R. 1776, the ``American Homeownership and Economic 
Opportunity Act of 1999.'' Representative Lazio (R-NY) also 
joined again with Representative Hooley (D-OR), and others to 
introduce H.R. 710, the ``Manufactured Housing Improvement Act 
of 1999.''
    The Subcommittee on Housing and Community Opportunity held 
one hearing on H.R. 1776 (including H.R. 710) on September 15, 
1999. On February 15, 2000, H.R. 1776, with the inclusion of 
H.R. 710, was marked up in Subcommittee and passed by voice 
vote. H.R. 1776 was marked up by the Committee on Banking and 
Financial Services and favorably reported to the House by a 
voice vote on March 14, 2000.

                  Background and Need For Legislation

    The national homeownership rate (the percentage of 
households who own their own home) is at an all-time peak of 
almost 67%. Nearly 70 million households own their own homes in 
America, one-third more than the 53 million who owned homes in 
1980. Low interest rates and a growing economy have been the 
major factors in the increase in the homeownership rate. 
However, the overall homeownership rate tends to mask the 
increasing hardship faced by some groups in their quest to buy 
their first home. An article in the New York Times of May 27, 
1999 noted, ``America's poorest families have been largely left 
out of the housing surge. Households with annual incomes 
under$25,000--about one third of the total, generally cannot afford 
monthly mortgage payments on most homes * * *.''
    Some of the gain in the homeownership rate is due to 
demographic forces. The aging ``baby boomers'' have pushed the 
average homeownership rate to new highs, while rates for 
individual groups are below former peaks. Statistics show that 
the only age groups to establish new records for homeownership 
are households headed by individuals aged 60 and above. Younger 
households, especially young married couples, remain up to 9 
percentage points below their peak rates of homeownership. 
Simply stated, fewer young Americans are able to afford their 
own homes than in past years. In 1972, the median new home 
price was $27,600. Mortgage interest rates were comparable to 
today's rates, and with a 10% downpayment nearly two-thirds of 
young households could purchase a home. In 1999, median new 
home prices were $157,000. With a 10% downpayment, less than 
40% of young households could purchase a new home.
    For millions of families, including younger households and 
low-income renters, the American dream of homeownership remains 
frustratingly out of reach. H.R. 1776 is designed to help put 
homeownership within reach of these households, recognizing the 
vital role housing plays in binding our society together. The 
direct link between housing and the positive economic, social 
and political outcomes that lead to more stable neighborhoods 
and communities makes increasing homeownership and affordable 
housing opportunities of primary importance for all Americans.

Reducing the barriers to affordability

    Regulation is needed to safeguard the health and safety of 
the public and to protect the environment, but over-regulation 
can impose costs on society as well. Federal policy should 
focus on reducing regulations that are unnecessary or 
excessive. Because there is no coordinated Federal approach or 
mechanism to ensure analysis of regulations that could affect 
the affordability of housing, less costly alternatives are 
oftentimes overlooked or not seriously considered. The 
cumulative effect of excessive regulation of the residential 
development process and of homebuilding inevitably leads to a 
decline in housing affordability for many would-be homebuyers.
    In 1994, the National Association of Home Builders (NAHB) 
found that development costs and fees added an average of 
$21,000 to the cost of a $200,000 home in highly regulated 
markets. In moderately regulated markets, the average increase 
in costs due to regulations were $10,000 per home. For every 
$1,000 increase in the price of a typical new home, one-half 
million households fail to qualify for a mortgage. These 
increased costs push many potential homebuyers out of the 
market. Families are sometimes forced to move farther from 
their jobs in order to buy a home, which imposes some long-term 
costs on society in terms of longer commutes, increased 
transportation needs, and urban sprawl.
    H.R. 1776 contains important provisions designed to reduce 
the regulatory barriers imposed by Federal regulations and to 
provide incentives to localities to develop barrier removal 
strategies. The legislation incorporates provisions from 
legislation introduced in the 105th Congress by Congressman Tom 
Campbell. The provisions require that all proposed Federal 
regulations include a housing impact analysis, so that a 
Federal agency can certify that a proposed regulation would 
have no significant deleterious impact upon the availability of 
affordable housing. If a proposed rule would have a negative 
impact, then an opportunity is given to groups to offer an 
alternative that achieves the stated objectives with less of an 
adverse impact upon affordable housing. The legislation directs 
HUD to create model impact analyses that other agencies can use 
for these purposes. Agencies responsible for regulating safety 
and soundness of financial institutions or government sponsored 
enterprises (GSEs) are exempt.
    The legislation authorizes $15 million for FY 2001 through 
FY 2005 for grants to States, local governments, and eligible 
consortia for regulatory barrier removal strategies. This is a 
reauthorization of the same amount under an already existing 
Community Development Block Grant (CDBG) set-aside (Section 
107(a)(1)(H)). Grants provided for these purposes must be used 
in coordination with the local comprehensive housing 
affordability strategy (CHAS). The bill also creates within 
HUD's Office of Policy Development and Research a ``Regulatory 
Barriers Clearinghouse'' to collect and disseminate information 
on, among other things, the prevalence of regulatory barriers 
and their effects on availability of affordable housing, and 
successful barrier removal strategies.

Increasing homeownership opportunities

    H.R. 1776 contains several provisions designed to increase 
the ability of local communities to leverage public funds with 
private sector funds, thereby increasing homeownership 
opportunities for all citizens. Section 503 of H.R. 1776 allows 
HOME (Home Investment Partnership Act) funds to be used as 
leverage in connection with the creation of larger ``loan 
pools'' (ten times the amount of the HOME funds invested in 
such a pool) without imposing the HOME income restrictions on 
the entire pool. In essence, this allows for the creation of 
``mixed-income'' loan pools that would benefit many more 
households than would have been possible under the existing 
HOME guidelines. In addition, the legislation establishes a 
HOME Loan Guarantee program, similar to the existing CDBG Loan 
Guarantee program. The HUD Secretary is authorized to guarantee 
the obligations of participating jurisdictions made in 
connection with affordable housing efforts by pledging as 
security that jurisdiction's future HOME allocations, in an 
amount not to exceed five times the most recent allocation.
    H.R. 1776 recognizes the importance of increasing the 
flexibility afforded local government officials within Federal 
programs so those programs can be tailored to fit local needs. 
District of Columbia Mayor Anthony Williams has testified 
before Congress as to the City's difficulties arising from 
competition with the suburbs for teachers because of salary 
differentials. Some municipalities have even considered 
imposing residencyrequirements for municipal employees. The 
manifest unfairness of such a requirement, particularly in high cost 
areas, is indisputable. Such a requirement would make homeownership for 
some blue-collar employees next to impossible if they wish to retain 
their municipal employment.
    In order to provide more local flexibility, H.R. 1776 
contains provisions allowing mayors or local governing 
officials to use CDBG or HOME funds to assist first-time 
homebuying municipal employees to purchase homes within their 
jurisdiction. These employees would be uniformed municipal 
employees (police, sanitation workers, fire fighters) and 
teachers. Assistance can take the form of downpayment 
assistance, help with closing costs, housing counseling, or 
subsidizing mortgage rates. Eligible employees are those with 
incomes at or below 115% of area median income, except in high 
cost areas, as determined by the Secretary, where incomes may 
be at or below 150% of area median income. Financial assistance 
is limited to a single year and entitlement communities are not 
permitted to commit on-going financial obligations. Recapture 
of homeownership assistance amounts is consistent with the 
existing recapture provisions of the HOME program.
    The provisions of H.R. 1776 granting a mayor or local chief 
executive the power to help municipal workers, fire fighters, 
teachers and police officers make their homes within the 
jurisdiction is not only good for homeownership, but provides 
more options for wise urban planning by local officials. 
Instead of moving further away from the cities to find 
affordable housing, thereby increasing commuting times, urban 
and suburban sprawl, and potentially undermining the social 
fabric of central city communities, working-class persons may 
be given a chance at homeownership in their city with some 
assistance from the municipality. Instead of creating ``smart 
growth'' programs at the Federal level to address what are 
truly local matters, granting flexibility within existing 
Federal programs so that communities can be creative in 
developing solutions is truly the way to encourage better 
planning.
    In keeping with the theme of providing local communities 
greater flexibility create innovative solutions to encourage 
homeownership and remove barriers to affordable housing, H.R. 
1776 includes provisions to assist those currently receiving 
rental assistance to move toward homeownership. Flexibility 
within the Section 8 program is given to PHAs to create 
homeownership programs for families receiving tenant-based 
assistance. Such assistance can take the form of lease-purchase 
arrangements, cooperatives, partnerships with nonprofit groups 
or other methods that a PHA can develop to accomplish its 
homeownership goals. PHAs are authorized to provide downpayment 
assistance in the form of a single grant, in lieu of monthly 
assistance, which shall not exceed the total amount of monthly 
assistance received by the tenant for the first year. The 
legislation provides that the HUD Secretary may carry out a 
demonstration program to provide homeownership opportunities 
for low-income families, and requires the Secretary to report 
to Congress annually on activities under such a demonstration 
program.
    The Committee commends the work of the Neighborhood 
Reinvestment Corporation in working with local 
NeighborWorks' organizations to develop a model for 
using a Section 8 voucher toward a mortgage. In partnership 
with the local and state PHAs, local NeighborWorks' 
organizations are using existing demonstration authority under 
Section 8(y) of the United States Housing Act of 1937. The 
Committee is mindful of three local programs, the Community 
Development Corporation (CDC) of Long Island (New York), 
Affordable Housing Resources (Nashville), and the Burlington 
Land Trust (Vermont), which have been approved as 
demonstrations by HUD.
    In recognition of these efforts, Section 303 of the bill 
authorizes a $2 million grant program to supplement 
demonstration programs approved under the Section 8 
homeownership demonstration program. The program would have a 
50% match requirement. The Committee believes this modest pilot 
program will be an important component in helping the 
homeownership demonstration program work in more markets and 
for more families because rates and terms will be tailored to 
each buyer's needs.
    There are a variety of provisions in H.R. 1776 designed to 
help specific populations in their efforts to achieve 
homeownership, including assistance for disabled families, 
changes to Native-American housing programs, and technical 
revisions affecting rural housing programs. For disabled 
families, H.R. 1776 incorporates legislation introduced by 
Congressman Mark Green of Wisconsin, which creates a pilot 
program to demonstrate the use of tenant-based Section 8 
assistance for the purchase of a home that will be owned by one 
or more members of a disabled family. Native American 
homeownership efforts are furthered by provisions offered by 
Congressman Doug Bereuter to streamline the title status 
determination for tribal lands. Currently, receipt of a title 
certificate from the Bureau of Indian Affairs (BIA) is a 
prerequisite to any sales transaction on Indian lands. The 
General Accounting Office has determined that inefficiency in 
how the BIA conducts title reviews of Indian lands is hindering 
homeownership efforts. The procedure has proven to be extremely 
cumbersome, and presents a severe regulatory barrier to 
increasing homeownership on Indian lands. H.R. 1776 establishes 
an Indian Lands Title Report Commission that will recommend 
improvements to BIA title reviews in connection with the sale 
of Indian lands. In addition to streamlining the title review 
process, H.R. 1776 incorporates provisions of H.R. 67, the 
``Indian Housing Loan Guarantee Extension Act of 1999,'' 
introduced by Congressman Bereuter, which permanently 
authorizes the Section 184 Loan Guarantee Program for Indian 
housing.

Increasing benefits associated with homeownership

    In addition to increasing the opportunities for first-time 
homebuyers through reduction in barriers to affordability and 
added flexibility within existing Federal programs, H.R. 1776 
contains several measures designed to increase the benefits 
associated with homeownership for those who have already 
purchased a home, intend to rehabilitate their dwelling, or who 
wish to access the equity they have in their home.H.R. 1776 
directly benefits senior citizen homeowners by allowing for the 
refinancing of federally-insured home equity conversion mortgages 
(HECMs), sometimes known as ``reverse mortgages.'' Reverse mortgages 
allow seniors aged 62 and older to borrow against the equity in their 
homes without being required to make monthly interest or principal 
payments. Therefore, seniors who are ``house-rich'' but ``cash-poor'' 
and tap into the equity invested in their own homes for everyday living 
expenses such as medication, crucial home repairs, groceries, and other 
needs. The FHA-insured mortgages are then repaid upon the death of the 
homeowner through the sale of the home. The arrangement allows seniors 
to stay in the same house and neighborhoods with family and friends 
rather than having to sell and move to a nursing home.
    The HECM provisions in HR 1776 reduce the single premium 
payment when refinancing to credit the premium paid on the 
original loan. The legislation also establishes a limit on 
origination fees that may be charged and prohibits any broker 
fees that may be charged. Further, the legislation requires HUD 
to waive the up-front mortgage insurance premium entirely in 
qualifying cases where reverse mortgage proceeds are used for 
health care services, including prescription drug costs, 
Medigap supplemental insurance, and long-term care insurance 
contracts.
    H.R. 1776 also improves HUD's 203(k) program, mortgages for 
the purchase and the rehabilitation of a home, by establishing 
stronger protections against fraud. Provisions are included in 
the legislation to prohibit identities of interest between a 
lender, consultant, contractor, non-profit agency, real estate 
agent, inspector or appraiser involved in a 203(k) loan, except 
in cases of affiliated business arrangements provided in the 
Real Estate Settlement Procedures Act. The legislation also 
establishes stricter, uniform criteria for approving non-
profits participating in the program, and requires that lenders 
ensure the work has been completed to the borrower's 
satisfaction prior to disbursal of the final loan payment. The 
borrower must use a certified or bonded general contractor in 
cases where rehabilitation and improvements total $25,000 or 
more. The participating consultant must also meet standards 
established by the Secretary. In this area, industry standards 
or practice and professional codes of ethics have already been 
developed in the home inspection industry and are in wide use 
today to ensure the quality, integrity and professionalism of 
participants, The committee would note that the purpose of this 
provision is to encourage expanded use of such programs, not 
supplant or replace what has been done before. Adherence to 
industry standards of practice and professional codes of ethics 
promulgated by national professional home inspection 
organization such as the American Society of Home Inspector, 
and successful completion of industry standard examinations 
such as the National Home Inspector Examination, shall be 
deemed by the Secretary to meet the requirements of this 
section.
    H.R. 1776 also contains provisions to help educate 
consumers to look for major structural defects when looking for 
a home before becoming homeowner through the FHA program. 
Inspections of FHA-financed homes, unlike appraisals, are not 
mandatory under current law. Appraisals do not address the 
condition of a house in detail, as would a home inspection. FHA 
borrowers are often either first-time homebuyers or low-income 
borrowers, and can be more susceptible to fraud when purchasing 
a home, particularly if they assume that an appraisal includes 
a thorough assessment of a property's condition, Last year, FHA 
paid claims on more than 71,000 FHA-insured defaulted loans. 
Some of these defaults could have been prevented if the buyer 
had known the true condition of the house.
    H.R. 1776 requires GAO to conduct a study of the inspection 
process for FHA properties and compare the potential financial 
losses and savings to the Mortgage Insurance Fund (MMIF) if a 
mandatory FHA inspection was required. The study would review 
the potential impact of a mandatory FHA inspection on the 
homebuying process (including, in particular, undeserved areas 
where FHA losses are the greatest) and whether there is a 
housing quality and/or financial difference in inspected homes 
and those without inspections. The study would review the 
extent to which the financial, health and safety interests of 
consumers would be protected by mandatory FHA inspections, with 
special emphasis on vulnerable populations such as older 
Americans, parents with young children, under-educated or 
economically disadvantaged individuals, and the disabled. The 
study would also asses the consumer's knowledge about FHA-
financed independent inspections available under HUD's existing 
Homebuyer Protection Plan and whether or not it educates 
consumers about the differences between appraisals and 
inspections, and whether their choices for an inspection are 
affected or pressured by market or economic forces. The 
Comptroller shall consult with leading national trade 
association and professional societies engaged in real estate 
sales and finance, home inspection and consumer protection in 
conducting this study.

Creating Healthier Neighborhoods

    H.R. 1776 recognizes the link between policies that promote 
homeownership and the health of communities by allowing local 
governments to create homeownership programs to assist 
individuals of specific professions, such as police officers 
and teachers, whose presence in communities is especially 
beneficial.
    H.R. 1776 incorporates legislation introduced by 
Congressman Mark Green, to establish a law enforcement officer 
homeownership pilot program to help fight crime in distressed 
communities. The bill requires the HUD Secretary to develop a 
pilot program designed to assist law enforcement officers, 
including correctional officers, to purchase homes in locally 
designated high crime areas. No downpayment is required, and 
the borrower must have served as a police officer for at least 
six months. The provision is primarily targeted for high-crime 
areas. By introducing police officers into certain 
neighborhoods as homeowners, this provision not only helps 
public servants achieve homeownership, but also begins the 
process of reclaiming distressed neighborhoods from the effects 
of crime.
    Similary, the bill recognizes the integral part that 
teachers can play in the lives of children and the benefits 
that their presence can bring to a community. Teachers are 
often the most important mentors to many children, providing 
them with the values and skillsfor self-fulfillment in adult 
life. Many teachers, however, face difficulty in becoming homeowners. 
Section 205 of H.R. 1776 establishes the Neighborhood Teacher program, 
which is designed to encourage and reward teachers that serve students 
in our most needy communities. Under the program, designated HUD-owned 
properties in distressed neighborhoods will be available for purchase 
at a 50 percent discount. For teachers who use FHA-insured mortgage 
financing, the downpayment for the home is $100. If a government entity 
or nonprofit organization is the purchaser, the expectation is that the 
full discount will be passed on to the teacher. A teacher must occupy 
the purchased property as his or her principal residence for at least 
three years.
    The idea enjoys wide, bipartisan support. The Neighborhood 
Teacher program, originally designed by Congressman Leach and 
Congressman Lazio in consultation with educators, was included 
in H.R. 1776 as introduced on May 12, 1999. Subsequently, 
Congressman Joseph Crowley, along with Congresswoman Barbara 
Lee and Congressman Gary Ackerman, introduced nearly identical 
legislation in July of 1999. HUD implemented the Committee 
proposal through regulation in the Fall of 1999. The program is 
endorsed by the National Education Association, which noted 
that the provision would encourage homeownership among young 
teachers who might not otherwise be able to afford their own 
homes.
    The legislation also includes a provision that builds on 
the program designed by Congressman Green, to authorize reduced 
FHA downpayment requirements for teachers and public safety 
officers. The change, made at the request of a number of 
Committee Members, including Congressman Leach and Congressman 
LaFalce, mirrors flexibility the legislation provides to local 
governments using CDBG and HOME funds for a similar category of 
home buyers. The provision would allow teachers, law 
enforcement officers, emergency medical technicians and others, 
one percent FHA downpayments under certain conditions, 
reflecting growing community concerns that rising home prices 
weaken the ability to attract quality public servants.
    In light of the legislative changes to programs under FHA, 
the Committee will continue to review the financial safety and 
soundness of FHA's Mutual Mortgage Insurance Fund (Fund). In 
particular, the Committee has requested the General Accounting 
Office to review the conditions under which the statutorily 
required capital reserve Fund level of 2 percent by FY2000 
would be adequate. The Committee has also requested the 
Congressional Budget Office to conduct an independent actuarial 
analysis of the Fund based on concerns that the projections 
included in the FY1999 MMI Fund Actuarial Review may be based 
on flawed assumptions. Based on the exposure of the Fund, which 
currently insures single-family mortgage loans totaling $380 
billion, and the accompanying risk and potential cost to 
taxpayers, the importance of the financial integrity of the 
Fund cannot be overstated. Finally, the Committee would 
strongly advise HUD that the Department has no ability to 
transfer Fund capital reserves or resources to areas outside of 
FHA without Congressional action and enactment of new statutory 
language.

Improving federal property disposition

    Ineffective federal housing policies regarding the 
disposition of federally-held properties can negatively impact 
the economic vitality of neighborhoods. HUD's mismanagement of 
its property disposition program for FHA foreclosed homes has 
made it difficult for many communities to maintain property 
values and dedicated homeowners. HUD's foreclosed, vacant and 
substandard single-family properties are widely perceived as 
contributing to increased crime, urban blight, and the overall 
decline of working-class neighborhoods.
    In order to address the problem of HUD-foreclosed, vacant 
and substandard properties, H.R. 1776 incorporates provisions 
of H.R. 815 the ``American Community Renewal Act'', introduced 
by Congressman Jim Talent and Congressman J.C. Watts, as Title 
VIII of the bill (entitled ``Transfer of HUD-Held Housing of 
Local Governments and Community Development Corporations). The 
intent of the property disposition provisions of the ``American 
Community Renewal Act'' is to get substandard, vacant, HUD-held 
properties into the possession of local governments and 
community development corporations for homeownership and 
community revitalization efforts in distressed communities. In 
addition to local governments and nonprofit agencies, the 
Committee believes that there is sufficient history and 
analysis to demonstrate that private development and management 
also represent an effective and qualitative use of these 
resources. Particularly in the area of neighborhoods 
revitalization, it is the private sector that is leading the 
way and providing the vast majority of investment into the 
creation of new neighborhoods. Many times, this is in the form 
of a partnership with the local government and community 
development corporations.
    The Committee would encourage the Secretary to fully 
consider the need to be inclusive in recommending strategies 
and incentives for the preservation of these properties so they 
may make positive contributions to the communities in which 
they are located when the transfer of these properties is 
considered.
    Despite protestations from HUD that these measures are no 
longer necessary, as recently as February of this year, the HUD 
Office of Inspector General (OIG) raised problems with HUD's 
property disposition program in testimony before Congress. The 
OIG stated that

        [b]y the end of January 2000, HUD's REO [Real Estate 
        Owned] inventory totaled 47,711 properties, 42% of 
        which had been in the inventory 6 months or more, and 
        17% of which had been in the inventory 12 months or 
        more. Ten months earlier, when management and marketing 
        contractors started work, the inventory had totaled 
        43,560 properties, 30% of which had been in the 
        inventory 6 months or more, and 10% of which had been 
        in the inventory 12 months or more. These statistics 
        demonstrate the difficulty of disposing of properties 
        that have been in theinventory for long periods and the 
tendency of contractors to focus their efforts on disposing recently 
acquired properties.\1\
---------------------------------------------------------------------------
    \1\ Testimony of Susan Gaffney, Office of Inspector General, 
Department of Housing and Urban Development, before the House Budget 
Committee on February 17, 2000.

    HUD Secretary William Apgar testified before the 
Subcommittee on Housing and Community Opportunity on September 
15, 1999 that forcing the Department to transfer its 
foreclosed, vacant, and substandard properties would result in 
huge costs to the taxpayer, possibly reducing the FHA Single-
Family insurance fund by $3 billion. As a result, 
clarifications were made to certain definitions in the 
legislation at Subcommittee markup to ensure that no such cost 
would be incurred. Shortly thereafter, on March 1, 2000, the 
HUD Secretary announced, at a press conference, HUD's ``Good 
Neighbor Policy,'' which would allow sale to local governments 
of HUD-foreclosed single family properties at a price of $1.00 
each. According to HUD, the ``initiative won't cost taxpayers a 
penny.'' \2\
---------------------------------------------------------------------------
    \2\ HUD Press Release No. 00-42, dated March 1, 2000, entitled 
``Cuomo and Kasich Announce new HUD Policy to Sell Homes to Local 
Governments for $1.00 Each''.
---------------------------------------------------------------------------
    As these actions clearly demonstrate, there is strong 
bipartisan agreement about the need for HUD to transfer, where 
practicable, its HUD-foreclosed, vacant and substandard 
properties into local control. Accordingly, the provisions of 
Title VIII were further amended to incorporate into law the 
requirement that HUD transfer such properties for $1.00, 
pursuant to the requirements of the legislation, and in 
accordance with HUD's stated policy.
    Section 602 of H.R. 1776 provides grants to cities for use 
in ``Homeownership Zones''--designated areas in which large 
scale development projects are designed to reclaim distressed 
neighborhoods by creating homeownership opportunities for low 
and moderate income families. H.R. 1776 authorizes $25 million 
in grants for FY 2001, and such sums as may be necessary for FY 
2002, to remain available until expended.

Improving manufactured housing

    Manufactured Housing provides many more Americans with the 
opportunity to become homeowners because of the relative 
affordability of such housing. New, multi-sectioned 
manufactured homes cost $40,000 to $70,000, compared to 
$157,000 for the average conventionally built new home. In 
1998, nearly 380,000 manufactured homes were built in the 
United States, constituting almost a third of all new single-
family homes sold that year. Manufactured communities are less 
mobile now, with more such homes having amenities such as 
vaulted ceilings, state of the art appliances, in-door garages 
and decks.
    The needs of a changing industry and product have made the 
``National Manufactured Housing Construction and Safety 
Standards Act of 1974'' all but obsolete. The Act was 
originally designed to transition manufactured housing from the 
old trailer-model into a more reliable, alternative source of 
affordable housing, built at a plant site under a uniform 
Federal building code. Undeniably, the need to update and 
restructure the provisions of the Manufactured Housing Act 
exists. In fact, the HUD Secretary has stated that ``the HUD 
code is frozen in time, and [HUD's] process for changing the 
code is cumbersome and often ineffective.''
    As a result, Title XI of H.R. 1776 contains ``The 
Manufactured Housing Improvement Act,'' which is designed to 
improve the manufactured housing program while protecting the 
consumer. Title XI of H.R. 1776 ensures that significant 
improvements will be made to the quality, safety and 
affordability of these manufactured homes and the Federal 
management of the program. The bill establishes an American 
National Standards Institute (ANSI) certified consensus 
committee of consumers, industry experts and government 
officials (the ``Consensus Committee'') to improve the 
management of the Federal program by establishing a uniform 
code. The Consensus Committee is responsible for making timely 
updates to the HUD code and for developing enforcement 
standards which must be approved by the Secretary.
    From the time of its initial introduction, both Majority 
and Minority Committee staff, HUD, the manufactured housing 
industry and consumer groups have worked together to craft an 
acceptable compromise on the manufactured housing bill to 
protect both the interests of consumers and the industry. The 
current version of the legislation incorporates changes 
negotiated in the 105th Congress that gave the HUD Secretary 
more authority to reject recommendations made by the Consensus 
Committee, and to better balance consumer interests with those 
of the manufactured housing industry in the composition of the 
Consensus Committee. In the 106th Congress, the bill was 
amended further to foster the creation of installation and 
dispute resolution programs at the State level. The current 
bipartisan support for the bill reflects the results of 
extensive negotiation efforts to address consumer concerns with 
the installation of manufactured homes, as well as the lack of 
consumer recourse when repairs are needed on poorly installed 
homes.
    Specific changes to the bill as reported out of the 
Committee include: changing the composition of the Consensus 
Committee from five groups with five members in each group to 
three groups with seven members in each group: (1) producers, 
(2) users and (3) general interest and public officials. The 
change in the Consensus Committee's composition is consistent 
with ANSI guidelines. In addition, there is language to ensure 
the Committee is represented by balanced interests and that 
``all affected interests have the opportunity for fair and 
equitable participation without dominance by any single 
interest.''
    States are given five years to adopt an installation 
program established by State law that includes installation 
standards, the training and licensing of installers and the 
inspection of the installation of manufactured homes. During 
this five-year period. The HUD Secretary and the Consensus 
Committee are charged with developing a model manufactured 
housing installation program. In States that fail to adopt an 
installationprogram, HUD may contract with an appropriate agent 
in those States to implement the model installation program.
    In order to address problems that may arise with 
manufactured homes, changes to the legislation provide that 
States have five years to adopt a dispute resolution program. 
Such a program will provide for the timely resolution of 
disputes between manufacturers, retailers, and installers 
regarding the responsibility for the correction or repair of 
defects in manufactured homes that are reported during the one 
year period beginning on the date of installation. As in the 
case of installation standards, for States that choose not to 
adopt their own dispute resolution program, HUD may contract 
with an appropriate agent in those states to implement a 
dispute resolution program.
    The Committee notes that language in title XI of H.R. 1776 
(formerly Title VII) has changed from earlier versions. One 
notable change is the composition of the manufactured housing 
Consensus Committee, which is designed to develop and recommend 
additions, revisions, and interpretations to the Federal 
Manufactured Home Construction and Safety Standards and 
enforcement regulations to the Secretary of HUD. It is 
noteworthy that in making such modifications, for the sake of 
consistency with the ANSI guidelines, reference to several 
specific industries, such as the home builders, in the 
``General Interest'' Section has been omitted. Such omission 
was in no way intended to exclude the homebuilders from 
participation in the Consensus Committee. It is the Committee's 
intention that industries involved in the purchase, 
construction, or site development of manufactured housing, such 
as the home building industry, be members of the Consensus 
Committee, to ensure the intent of ANSI's requirements for due 
process are met.

Additional provisions, background and explanation

    There are several additional provisions in H.R. 1776 that 
affect homeownership interests or make improvements to existing 
affordable housing programs. Provisions affecting private 
mortgage insurance (PMI) are included to clarify and streamline 
requirements in existing law and allow flexibility where needed 
to ensure that the best interests of the lender and the 
borrower are achieved. For example, the legislation clarifies 
situations where there are workout agreements between a lender 
and a delinquent borrower. When modifying the terms of the 
original note or mortgage, lenders have the option to reset the 
cancellation, termination and final termination dates to 
conform to the modified changes. In addition, balloon payments 
are treated as adjustable rate mortgages, with the result being 
that amortization and termination schedules must be provided to 
the borrower.
    H.R. 1776 also incorporates the provisions of S. 400, the 
``Native American Housing and Self-Determination Act Amendments 
of 1999,'' which makes technical and clarifying amendments to 
the ``Native American Housing and Self-Determination Act of 
1996'' (NAHASDA). Included are provisions which would allow the 
HUD Secretary to waive the requirement for a local cooperation 
agreement provided the recipient has made a good faith effort 
to comply and agrees to make payments in lieu of taxes to the 
jurisdiction. Also included are provisions setting forth 
requirements for assistance to Indian families that are not 
low-income upon a showing of need. In addition, NAHASDA is 
amended so that the HUD Secretary has the authority to waive 
the statutory requirements of environmental reviews upon a 
determination that failure to comply does not undermine goals 
of the National Environmental Policy Act, will not threaten the 
health or safety of the community and is the result of 
inadvertent error which can be corrected by the recipient of 
funding. The intent is to allow the Secretary and tribe to 
address problems resulting from procedural, rather than 
substantive, noncompliance.
    The bill prescribes formula allocation for Indian housing 
authorities operating fewer than 250 units by requiring the 
amount of assistance provided to these tribes to be based on an 
average of their allocations from the prior five (5) fiscal 
years (fiscal years 1992 through 1997). For Section 8 vouchers 
currently being used by an Indian tribe, the bill requires 
counting such vouchers under the NAHASDA block grant allocation 
formula to ensure that families currently participating in the 
Section 8 voucher program will continue to be funded.
    In addition to the technical amendments incorporated from 
S. 400, H.R. 1776 also includes a provision allowing tribal 
housing entities to provide housing on Indian reservations to 
full-time law enforcement officers, sworn to implement the 
Federal, State, county, or tribal law.
    Creation of the Land Title Status Commission, permanent 
authorization of the Section 184 Loan Guarantee Program, and 
amendments to NAHASDA designed to increase the efficiency and 
impact of that program in terms of homeownership for Native 
Americans, ensure that enactment of H.R. 1776 will further the 
goal of increased homeownership on tribal lands.
    Finally, the Secretary is directed to report to the House 
Committee on Banking and Financial Services and the Senate 
Committee on Banking, Housing, and Urban Affairs regarding 
efforts to develop a pilot program in Texas regarding the Texas 
Apartment Association (``TAA'') Section 8 Addendum (the 
``Addendum'') and to streamline the Section 8 program.

                                Hearings

    The Subcommittee on Housing and Community Opportunity held 
one hearing on the ``American Homeownership and Economic 
Opportunity Act of 1999'' in the first session of the 106th 
Congress.
    The hearing was held on Wednesday, September 15, 1999, in 
Room 2128 Rayburn House Office Building. Testifying before the 
Subcommittee were: Mr. Antone Giordano, Vice-Chairman of the 
NAHB Federal Government Affairs Committee, testified on behalf 
of the National Association of Home Builders (NAHB); Mr. 
William Apgar, AssistantSecretary for Housing and Federal 
Housing Commissioner for the U.S. Department of Housing and Urban 
Development (HUD); Mr. George Knight, Executive Director of the 
Neighborhood Reinvestment Corporation; Mr. Rutherford ``Jack'' Brice, a 
Member of the Board for the American Association of Retired Persons 
(AARP); and Mr. Edward Hussey, the Chairman of the Government Affairs 
Committee of the Manufactured Housing Association for Regulatory Reform 
(MHARR), testifying on behalf of the Coalition to Improve the 
Manufactured Housing Act.

     Committee Consideration and Votes (Rule XI, Clause 2(l)(2)(B)

    The Committee met in open session to markup H.R. 1776, 
``American Homeownership and Economic Opportunity Act of 2000'' 
on March 14, 2000. The Committee considered, as original text 
for purposes of amendments, a Committee Print as reported by 
the Subcommittee on February 15, 2000, which incorporated H.R. 
1776 as introduced.
    During the markup, the Committee approved 9 amendments, 
including a managers amendment in the nature of a substitute, 
by voice vote. The Committee defeated 2 amendments by recorded 
vote. Pursuant to the provisions of clause 2(l)(2)(B) of rule 
XI of the House of Representatives, the results of each roll 
call vote and the motion to report, together with the names of 
those voting for and those against are printed below:

                             rollcall no. 1

    Date: March 14, 2000.
    Measure: ``American Homeownership and Economic Opportunity 
Act of 2000''.
    Motion by: Mr. Frank.
    Description of motion: Broadens the definition of 
``monitoring'' to include inspection of manufactured housing at 
manufacturing locations (in addition to retail locations) and 
to allow inspectors to inspect the manufactured home in its 
entirety, in addition to the items currently listed in the 
definition.
    Results: Defeated: Ayes 19, Nays 23.
        YEAS                          NAYS
Mr. Campbell                        Mr. Leach
Mr. LaFalce                         Mr. Baker
Mr. Frank                           Mr. Lazio
Mr. Kanjorski                       Mr. Castle
Mr. Sanders                         Mr. King
Ms. Velazquez                       Mr. Royce
Mr. Watt                            Mr. Lucas
Mr. Bentsen                         Mr. Metcalf
Mr. Maloney                         Mr. Ney
Ms. Hooley                          Mrs. Kelly
Mr. Weygand                         Dr. Weldon
Mr. Sherman                         Mr. Ryun of Kansas
Mr. Sandlin                         Mr. Riley
Mr. Inslee                          Mr. Hill
Ms. Schakowsky                      Mr. LaTourette
Mr. Moore                           Mr. Manzullo
Mrs. Jones                          Mr. Jones
Mr. Capuano                         Mr. Ryan of Wisconsin
Mr. Forbes                          Mr. Ose
                                    Mr. Sweeney
                                    Mrs. Biggert
                                    Mr. Terry
                                    Mr. Green

                             rollcall no. 2

    Date: March 14, 2000.
    Measure: ``American Homeownership and Economic Opportunity 
Act of 2000''.
    Motion by: Mr. Frank.
    Description of motion: Requires HUD to provide to 
consumers, within 60 days of request, information regarding 
defects in manufactured homes and to notify the manufactured 
housing industry of the request so that the Department can 
expedite the process.
    Results: Defeated: Ayes 11, Nays 28.
        YEAS                          NAYS
Mr. LaFalce                         Mr. Leach
Mr. Frank                           Mr. Baker
Mr. Sanders                         Mr. Lazio
Ms. Velazquez                       Mr. Castle
Mr. Watt                            Mr. King
Mr. Inslee                          Mr. Royce
Ms. Schakowsky                      Mr. Lucas
Mr. Moore                           Mr. Metcalf
Mrs. Jones                          Mr. Ney
Mr. Capuano                         Mrs. Kelly
Mr. Forbes                          Dr. Weldon
                                    Mr. Ryun of Kansas
                                    Mr. Riley
                                    Mr. LaTourette
                                    Mr. Manzullo
                                    Mr. Jones
                                    Mr. Ryan of Wisconsin
                                    Mr. Ose
                                    Mr. Sweeney
                                    Mrs. Biggert
                                    Mr. Terry
                                    Mr. Green
                                    Mr. Kanjorski
                                    Mr. Bentsen
                                    Mr. Maloney
                                    Ms. Hooley
                                    Mr. Sherman
                                    Mr. Sandlin

    After the Committee Print, as amended, was adopted by voice 
vote, H.R. 1776 was called up for Committee consideration. A 
motion to strike everything after the enacting clause in H.R. 
1776 and insert in lieu thereof the Committee Print was 
approved by voice vote. A motion to adopt H.R. 1776 and 
favorably report the bill, as amended, to the House was 
approved by voice vote.

                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings and recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI (and clause 4(c)(2) of rule X) of 
the Rules of the House of Representatives.

                        Constitutional Authority

    In compliance with clause 2(l)(4) of rule XI of the Rules 
of the House of Representatives, the constitutional authority 
for Congress to enact this legislation is derived from the 
general welfare clause (Article I, Sec. 8).

               New Budget Authority and Tax Expenditures

    Clause 2(l)(3)(B) of rule XI of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority for increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    The cost estimate pursuant to Clause 2(l)(3)(C) of rule XI, 
of the Rules of the House of Representatives and Section 403 of 
the Congressional Budget Act of 1974 has been requested, but 
had not been prepared as of the filing of Part I of this 
report. The estimate will be included in Part II of this report 
to be filed at a future date.

                      Advisory Committee Statement

    No advisory committees within the meaning of Section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                    Congressional Accountability Act

    The reporting requirement under Section 102(b)(3) of the 
Congressional Accountability Act (P.L. 104-1) is inapplicable 
because this legislation does not relate to terms and 
conditions of employment or access to public services or 
accommodations.

       Congressional Budget Office Federal Mandate Cost Estimate

    The cost estimate pursuant to Section 424 of the Unfunded 
Mandates Reform Act (P.L. 104-4) has been requested, but had 
not been prepared as of the filing of this report. The estimate 
will be filed at a future date.

                           Section by Section

    Section 1. Short Title and Table of Contents. States that 
the act may be cited as the ``American Homeownership and 
Economic Opportunity Act of 2000.''
    Section 2. Findings and purpose. Congressional findings are 
that expanding homeownership opportunities should be a national 
priority, that there is an abundance of conventional capital 
available, that communities possess ample will and creativity 
to provide opportunities uniquely designed to assist their 
citizens to achieve homeownership, and that consumers should 
have access to lending opportunities at reasonable costs with 
knowledge behind lending decisions. Purposes of the act are to 
encourage homeownership by families not otherwise able to 
afford homeownership, to promote the ability of the private 
sector to produce affordable housing without excessive 
government regulations, to expand homeownership through tax 
incentives such as the home mortgage-interest deduction, and to 
facilitate the availability of capital for homeownership 
opportunities.

         TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

    Section 101. Short title. This title may be referred to as 
the ``Housing Affordability Barrier Removal Act of 2000.''
    Section 102. Housing impact analysis. Requires that all 
proposed federal regulations include a housing impact analysis 
so that a federal agency can certify that a proposed regulation 
would have no significant deleterious impact upon housing 
affordability. If a proposed rule would have a negative impact, 
then an opportunity is given to groups to offer an alternative 
that achieves the stated objectives with a less deleterious 
impact on housing. The Department of Housing and Urban 
Development (HUD) is directed to create model impact analyses 
that other agencies can use for these purposes. Agencies 
responsible for regulating safety and soundness of financial 
institutions or government sponsored enterprises (GSEs) are 
exempt.
    Section 103. Grants for regulatory barrier removal 
strategies. Authorizes $15 million for FY 2001 through FY 2005 
for grants to States, local governments, and eligible consortia 
for regulatory barrier removal strategies. This is a 
reauthorization of the same amount under an already existing 
CDBG setaside (Section 107(a)(1)(H)). Grants provided for these 
purposes must be used in coordination with the local 
comprehensive housing affordability strategy (``CHAS'').
    Section 104. Eligibility for community development block 
grants. Requires a jurisdiction as a condition of eligibility 
under the CDBG program to make a good faith effort to reduce 
barriers to affordable housing identified in the CHAS submitted 
by the jurisdiction to HUD, without creating any new private 
right of action.
    Section 105. Regulatory barriers clearinghouse. Creates 
within HUD's Office of Policy Development and Research a 
``Regulatory Barriers Clearinghouse'' to collect and 
disseminate information on, among other things, the prevalence 
of regulatory barriers and their effects on availability of 
affordable housing, and successful barrier removal strategies.

 TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES

    Section 201. Extension of Loan Term for Manufactured Home 
Lots. Extends the loan terms for manufactured home lots 
financed by insured financial institutions from 15 years, 32 
days to 20 years, 32 days.
    Section 202. Downpayment simplification. Permanently 
authorizes simplified downpayment calculations/requirements for 
FHA-insured mortgages, originally applicable only to Alaska and 
Hawaii in the 1998 and 1999 Appropriations Acts. In FY2000, 
this was broadened to apply nationally.
    Section 203. Reduced downpayment requirements for loans for 
teachers and uniformed municipal employees. Allows reduced 
downpayment requirements for FHA-insured loans for teachers and 
uniformed municipal employees.
    Section 204. Preventing fraud in rehabilitation loan 
program. Establishes stronger anti-fraud protections in HUD's 
203(k) home acquisition and rehabilitation program. Prohibits 
any identity of interest between a lender, consultant, 
contractor, non-profit agency, real estate agent, inspector or 
appraiser involved in a 203(k) loan, except in cases of 
affiliated business arrangements provided in the Real Estate 
Settlement Procedures Act; establishes stricter, uniform 
criteria for approving non-profits participating in the 
program; requires landers to ensure the work has been completed 
to the borrowers' satisfaction through interview before 
dispersing the final loan payment; requires that consultants 
involved in 203(k) loans be certified by HUD; requires in cases 
of owner/occupied participants with improvements over $25,000, 
that the borrower go through a certified or bonded general 
contractor; and requires HUD to report to Congress the 
potential impact of eliminating the non-profit component of the 
program (currently, non-profits comprise three to four 
percent).
    Section 205. Neighborhood Teacher Program. Allows the sale 
of FHA single-family properties at discounted prices to state-
certified teachers or administrators in grades pre-k through 
12.
    Section 206. Community development financial institution 
risk-sharing demonstration. Amends section 249 of the National 
Housing Act (NHA) to allow Community Development Financial 
Institutions (CDFI) to originate and service section 249 risk-
sharing mortgage loans in a demonstration program, limited to 
four regions as designated by the HUD Secretary.
    Section 207. Hybrid ARMs. Adds a Hybrid FHA Adjustable Rate 
Mortgage (ARMs) to insure mortgages that carry an interest rate 
for an initial period of at least 3 years before adjusting to a 
fixed rate.
    Section 208. Home equity conversion mortgages. Allows for 
the refinancing of home equity conversion mortgages (HECMs) for 
elderly homeowners. Reduces the single premium payment to 
credit the premium paid on the original loan (subject to an 
actuarial study); establishes a limit on origination fees that 
may be charged (which fees may be fully financed) and prohibits 
the charging of broker fees; waives counseling requirements if 
the borrower has received counseling in the prior five years 
and the increase in the principal limit exceeds refinancing 
costs by an amount set by the Department; and provides a 
disclosure under a refinanced mortgage of the total cost of 
refinancing and the principal limit increase.
    In cases where the reverse mortgage proceeds are used for 
long-term care insurance contracts, a portion of those proceeds 
may be used for up-front costs, such as initial service, 
appraisal and inspection fees. Requires HUD to waive the up-
front mortgage insurance premium in cases where reverse 
mortgage proceeds are used for costs of a qualified long-term 
care insurance contract.
    Directs the Department of conduct an actuarial study within 
180 days of the effect of reducing the refinancing premium 
collected under a refinancing and of the effect creating a 
single national loan limit for HECM reverse mortgages.
    Section 209. Law enforcement officer homeownership pilot 
program. Requires the HUD Secretary to develop a pilot program 
designed to assist law enforcement officers, including 
correctional officers, to purchase homes in locally designated 
high crime areas. No downpayment is required. The borrower must 
have served as police officer for at least 6 months. The 
provision is primarily targeted for high-crime areas.
    Section 210. Study of mandatory inspection requirement for 
single family mortgage insurance. Requires a GAO study of the 
inspection process for Federal Housing Administration (FHA) 
properties, comparing or estimating the potential financial 
losses and savings to the Mutual Mortgage Insurance Fund 
between a system that would require a mandatory FHA inspection 
and the current optional inspection. The study would also 
review the potential impact of a mandatory FHA system on the 
homebuying process, particularly including undeserved areas 
where FHA losses are the greatest and whether there is a 
housing quality and/or financial difference in inspected homes 
and those without inspections. The study would also review the 
current option practice and FHA's Homebuyer Protection Plan, 
and report whether consumers understand the availability of 
independent inspections, financed by FHA and whether their 
choices for an inspection are affected or pressured by market 
or economic forces.
    Section 211. Report on title I home improvement loan 
program. Requires HUD within one year of enactment of this act 
to provide Congress with a report containing recommendations 
for improvements to the property improvement loan insurance 
program under title I of the NHA. In determining such 
recommendations, the Secretary shall consult with interested 
persons and organizations, including the lending industry and 
consumer organizations.

               TITLE III--SECTION 8 HOMEOWNERSHIP OPTION

    Section 301. Downpayment assistance. Public Housing 
Authorities (PHAs) are authorized to provide down-payment 
assistance in the form of a single grant, in lieu of monthly 
assistance. Such down-payment assistance shall not exceed the 
total amount of monthly assistance received by the tenant for 
the first year of assistance. For FY 2000 and thereafter, 
assistance under this section shall be available to the extent 
that sums are appropriated.
    Section 302. Pilot program for homeownership assistance for 
disabled families. Adds a pilot program to demonstrate the use 
of tenant-based section 8 assistance (section 8 vouchers) for 
the purchase of a home that will be owned by 1 or more members 
of the disabled family and will be occupied by that family and 
meets certain requirements. Requirements include purchase of 
the property within three years of enactment of this Act; 
demonstrated income level from employment or other sources 
(including public assistance), that is not less than twice the 
Section 8 payment standard established by the PHA; 
participation in a housing counseling program provided by the 
PHA; and other requirements established by the PHA in 
accordance with requirements established by the Secretary of 
HUD.
    Section 303. Funding for pilot program. Authorizes a $2 
million grant program to supplement demonstration programs 
approved under the Section 8 homeownership demonstration 
program. The program has a 50% match requirement.

              TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS

    Section 401. Reauthorization. Reauthorizes the Community 
Development Block Grant (CDBG) program at $4.9 billion for FY 
2001 and at such sums as may be appropriated thereafter through 
2005 and clarifies urban county designation for purposes of 
entitlement community status.
    Section 402. Prohibition of set-asides. Prohibits set-sides 
within the CDBG program.
    Section 403. Public services cap. Provides for a 6-year 
extension of the 25% CDBG public services cap for Los Angeles, 
CA.
    Section 404. Homeownership for municipal employees. 
Provides that a mayor or local governing official may use CDBG 
funds to assist first-time homebuying municipal employees to 
purchase homes within their jurisdiction. These employees would 
be uniformed municipal employees (police, sanitation workers, 
firemen) and teachers. Assistance can take the form of 
downpayment assistance, help with closing costs, housing 
counseling, or subsidizing mortgage rates. Eligible employees 
are those with incomes at or below 115% of area median income, 
except in high cost areas, as determined by the Secretary, 
where incomes may be at or below 150% of area median income. 
Financial assistance is limited to a single year and 
entitlement communities are not permitted to commit on-going 
financial obligations. Recapture of homeownership assistance 
amounts is consistent with existing recapture provisions in the 
HOME program.
    Section 405. Technical amendment relating to Brownfields. 
Makes environmental cleanup and economic development activities 
related to Brownfields a permanent eligible activity under CDBG 
by amending the Housing and Community Development Act of 1974.
    Section 406. Income eligibility. Requires HUD to grant 
exceptions for at least ten jurisdictions of its income 
eligibility limits on the use of CDBG and HOME funds. 
Currently, HOME and CDBG grantees are capped at 80% of the 
national median income instead of being allowed to serve 
households with incomes of 80% of the national median income 
instead of being allowed to serve households with incomes of 
80% of median of the local area. For those jurisdictions that 
HUD selects, based on housing costs and average income, the 
relevant median income for purposes of the CDBG/HOME limits 
will be the local median, rather than the national median.
    Section 407. Housing opportunities for persons with AIDS. 
Reauthorizes the Housing Opportunities For Persons with AIDS 
Program (HOPWA) at $260 million for FY 2001, and thereafter at 
such sums as may be appropriated through 2005.

              TITLE V--HOME INVESTMENT PARTNERSHIP PROGRAM

    Section 501. Reauthorization. Reauthorizes the HOME 
Investment Partnerships Program through FY 2005, at $1.65 
billion for FY 2001 and at such sums as may be appropriated 
thereafter through 2005. Also authorizes a set-aside of $3 
million, for each of FY 2001 and FY 2002, of HOME funds to 
create three pilot programs to provide planning money to 
regions to coordinate affordable housing.
    Section 502. Eligibility of limited equity cooperatives and 
mutual housing associations. Amends HOME to make eligible 
mutual housing associations and limited equity cooperatives.
    Section 503. Administrative costs. Provides flexibility in 
the HOME program to allow administrative expenses to be used 
over a long-term period to accommodate longer-term 
administration of servicing homeownership initiatives.
    Section 504. Leveraging affordable housing investment 
through local loan pools. Allows HOME funds to be used as 
leverage in connection with the creation of greater ``loan 
pools'' (ten times the amount of the HOME funds invested in 
such a pool) without imposing the HOME income restrictions on 
the entire pool (i.e. allows ``mixed-income'' pools).
    Section 505. Homeownership for municipal employees. 
Provides that a mayor or local governing official may use HOME 
funds to assist certain municipal employees to purchase homes 
within their jurisdiction. These employees would be uninformed 
municipal employees (police, sanitation workers, firemen) and 
teachers. Assistance can take the form of downpayment 
assistance, help with closing costs, housing counseling, or 
subsidizing mortgage rates. Eligible employees are those with 
incomes at or below 115% of area median income, except in high 
cost areas, as determined by the Secretary, where incomes may 
be at or below 150% of area median income.
    Section 506. Use of section 8 assistance by ``grand-
families'' to rent dwelling units in assisted projects. Allows 
HOME funds (in rental units otherwise not eligible for HOME 
funds) to be used for facilities with units with low-income 
families having a grandparent residing with a grandchild, or in 
some cases, where great- and great-great grandchildren are 
residing in the unit, with neither of the child's parents 
residing in the household.
    Section 507. Loan guarantees. Creates a HOME Loan Guarantee 
program by adding a provision allowing the Secretary to 
guarantee (similar to CDBG loan guarantees) the obligations of 
participating jurisdictions made in connection with affordable 
housing efforts by pledging as security a participating 
jurisdiction's future HOME allocations (up to five times the 
latest allocation).
    Section 508. Downpayment assistance for 2- and 3-family 
residences. Creates a pilot program for CDBG entitlement 
communities and HOME participating jurisdictions to use such 
grant amounts for downpayment assistance and closing costs to 
families purchasing a 2-3 family residence with use or resale 
restrictions. Eligible grant recipients are at or below 80% of 
area median income (defined as low-income) or in cases of high 
cost areas, at or below 110% of area median income, provided 
the locality requests a high-cost designation by the Secretary.

               TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES

    Section 601. Reauthorization of Neighborhood Reinvestment 
Corporation. Reauthorizes the Neighborhood Reinvestment 
Corporation at $95 million for FY 2001 and at such sums as may 
be necessary through FY 2005, including $5 million to provide 
up to 20 competitive grants for existing duplex homeownership 
programs in already established NeighborWorks' 
Homeownership Centers.
    Section 602. Homeownership zones. Provides grants for use 
in ``Homeownership Zones''--designated areas in which large-
scale development projects are designed to reclaim distressed 
neighborhoods by creating homeownership opportunities for low- 
and moderate-income families. Authorizes $25 million in grants 
for FY 2001 and such sums as may be necessary for FY 2002, to 
remain available until expended.
    Section 603. Lease-to-own. Provides for a sense of the 
Congress that residential tenancies under lease-to-own 
provisions can facilitate homeownership by low- and moderate-
income families. Requires the Secretary to provide a report to 
Congress within 3 months after enactment of the act, analyzing 
whether lease-to-own provision can be incorporated within HOME 
investment partnerships program, the public housing program, 
and other federally-assisted housing programs.
    Section 604. Local capacity building. Amends section 4 of 
Public Law 103-120 (the ``HUD Demonstration Act''), to add the 
National Association of Housing Partnerships as an intermediary 
organization eligible for federal grants to develop the 
capacity and ability of community development corporations and 
community housing development organizations to undertake 
community development and affordable housing projects.
    Section 605. Consolidated application and planning 
requirement and super-NOFA. Establishes a statutory basis for 
consolidating several Notices of Funding Availability (NOFAs) 
for various HUD programs into one ``SuperNOFA,'' thereby 
streamlining the process.
    Section 606. Assistance for self-help housing providers. 
Reauthorizes the self-help housing providers through FY 2003, 
at $25 million for FY 2001 and such sums as may be necessary 
for each of FY 2002 and 2003. Allows projects with 5 or more 
units to use their funds over a 3-year period. Allows entities 
to advance themselves funds prior to completion of 
environmental reviews for purposes of land acquisition.
    Section 607. Housing counseling organizations. Adds 
``cooperative housing'' as a form of homeownership eligible for 
housing counseling funds.
    Section 608. Community lead information centers and lead-
safe housing. Provides as an eligible activity the use of grant 
funds from the existing HUD Lead Hazard Control Grant program 
to provide access to residential lead-based paint poisoning 
prevention services at centralized locations; funds may be used 
to provide temporary lead-safe housing.

            TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP

    Section 701. Lands Title Report Commission. Subject to 
amounts appropriated, creates an Indian Lands Title Report 
Commission to develop recommended approaches to improving how 
the Bureau of Indian Affairs (BIA) conducts title reviews in 
connection with the sales of Indian lands. Receipt of a 
certificate from BIA is a prerequisite to any sales transaction 
on Indian lands, and the current procedure is overly burdensome 
and presents a regulatory barrier to increasing homeownership 
on Indian lands.
    The Commission is composed of 12 members with knowledge of 
Indian land title issues (4 appointed by the President, 4 by 
the President from recommendations made by the Chairman of the 
Senate Committee on Banking, Housing and Urban Affairs 
Committee, and 4 by the President from recommendations made by 
the Chairman of the House Committee on Banking and Financial 
Services). Authorized at $500,000.
    Section 702. Loan guarantees. Permanently authorizes the 
section 184 Loan Guarantee Program for Indian housing.
    Section 703. Native American housing assistance. Makes the 
following amendments to the Native American Housing and Self-
Determination Act of 1996 (NAHASDA):
    Restricts Secretary's authority to grant waiver of Indian 
housing plan requirements, upon noncompliance due to 
circumstances beyond the control of the Indian tribe, to a 
period of 90 days. Allows Secretary to waive requirement for a 
local cooperation agreement provided the recipient has made a 
good faith effort to comply and agrees to make payments in lieu 
of taxes to the jurisdiction.
    Sets forth requirement for assistance to Indian families 
that are not low-income upon a showing of need. Eliminates 
separate Indian housing plan requirements for small Indian 
tribes.
    Provides Secretary with authority to waive statutory 
requirements of environmental reviews upon a determination that 
failure to comply does not undermine goals of the National 
Environmental Policy Act, will not threaten the health or 
safety of the community, is the result of inadvertent error and 
can be corrected by the recipient of funding. The intent is to 
address problems resulting from procedural, rather than 
substantive, noncompliance.
    Authorizes tribal housing entities to provide housing on 
Indian reservations to full-time law enforcement officers, 
sworn to implement the Federal, state, county, or tribal law.
    Revises provisions regarding audits and reviews by the 
Secretary by making applicable the requirements of the Single 
Audit Act to tribal housing entities; allowing these housing 
entities to be treated as non-Federal entities; and, permitting 
the Secretary to conduct audits. The audits will determine 
whether the grant recipient has carried out eligible activities 
in a timely manner; has met certification requirements; has an 
on going capacity to carry out eligible activities in a timely 
manner; and, has complied with the proposed housing plan.
    Prescribes formula allocation for Indian housing 
authorities operating fewer than 250 units by requiring the 
amount of assistance provided to these tribes to be based on an 
average of their allocations from the prior five (5) fiscal 
years (fiscal years 1992 through 1997).
    Amends hearing requirements to allow the Secretary to take 
immediate remedial action if the Secretary determines that the 
recipient has failed to comply substantially with any material 
provision of NAHASDA resulting in continued federal 
expenditures not authorized by law.
    Upon noncompliance with the law due to technical 
incapacity, requires a recipient to enter into a ``performance 
agreement'' with the Secretary before the Secretary can provide 
technical assistance.
    For section 8 vouchers currently being used by an Indian 
tribe, requires counting such vouchers under the NAHASDA block 
grant allocation formula to ensure that families currently 
participating in the Section 8 voucher program will continue to 
be funded.
    Repeals requirement regarding the certification of 
compliance with subsidy layering requirements with respect to 
housing assisted with grant amounts provided under the Act.

    TITLE VIII--TRANSFER HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND 
                   COMMUNITY DEVELOPMENT CORPORATIONS

    Section 801. Transfer of unoccupied and substandard HUD-
Held housing to local governments and community development 
corporations. Amends Section 204 of the VA, HUD and Independent 
Agencies Act of 1997, which sets forth the authority of the HUD 
Secretary to engage in property disposition activities. 
Requires the HUD Secretary to transfer, to the maximum extent 
practicable, ownership of eligible properties (HUD-owned 
substandard multifamily, unoccupied multifamily, or unoccupied 
single-family properties) to a unit of local government having 
jurisdiction for the area where the property is located, or to 
a community development corporation within such jurisdiction, 
on certain terms and conditions. Eligible properties do not 
include any property subject to a specific sale agreement under 
section 204(h) of the National Housing Act, as amended by 
Section 602 of the FY 1999 VA, HUD and Independent Agencies 
Appropriations Act. Requires the HUD Secretary to issue a 
report within 6 months of enactment of the Act identifying any 
communities designated as ``revitalization communities'' 
pursuant to section 204(h) of the National Housing Act, as 
amended.
    Adds provision requiring that properties eligible are those 
which have been HUD-held for at least six months, and changes 
to definition of ``cost-recovery basis'' to incorporate 
appraised cost of property plus carrying costs. In cases where 
single-family property is transferred to a local unit of 
government, this section requires a $1 purchase program, 
consistent with current HUD policy.
    Section 802. Transfer of HUD assets in revitalization 
areas. Amends Section 204 of the National Housing Act, to 
require the HUD Secretary, within 60 days after a request by 
the Chief Executive of a jurisdiction, to designate such 
jurisdiction as a ``revitalization area'' for purposes of the 
property disposition program in section 204(h) of the NHA.

   TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

    Section 901. Short title. Provides that this title may be 
cited as the ``Private Mortgage Insurance Technical Corrections 
and Clarification Act''.
    Section 902. Changes in amortization schedule. Clarifies 
that private mortgage insurance (PMI) termination/cancellation 
rights for adjustable rate mortgages (ARMs) are based on the 
amortization schedule then in effect (the most recent 
calculation); treats a balloon mortgage like an ARM (uses most 
recent amortization schedule); bases cancellation/termination 
rights on modified terms if loan modification occurs.
    Section 903. Deletion of ambiguous references to 
residential mortgages. Clarifies that borrowers' PMI 
cancellation and termination rights apply only to mortgages 
created after the effective date of the legislation (one-year 
after the date of enactment).
    Section 904. Cancellation rights after cancellation date. 
Clarifies that the good payment history requirement in the bill 
is calculated as of the later of the cancellation date or, the 
date on which a borrower requests cancellation. Provides that 
if a borrower is not current on payments as of the termination 
date, but later becomes current, termination shall not take 
place until the first day of the following month (eliminates 
lender need to check and cancel PMI every day of the month). 
Clarifies that PMI cancellation or termination does not 
eliminate requirement to make PMI payments legitimately accrued 
prior to any cancellation or termination of PMI.
    Section 905. Clarification of cancellation and termination 
issues and lender paid mortgage insurance disclosure 
requirements. Adds provision clarifying cancellation and 
termination issues related to terms ambiguous in law, including 
``good payment history'', ``automatic termination'' and 
``accrued obligation for premium payments''. Clarifies that PMI 
cancellation rights exist on the cancellation date, or any 
later date, as long as the borrower complies with all 
cancellation requirements. Clarifies that borrower must be 
current on loan payments to exercise cancellation.
    Section 906. Definitions. Sets forth definitions of: (a) 
refinanced; (b) midpoint of the amortization period; (d) 
original value; and (e) principal residence.

                  TITLE X--RURAL HOUSING HOMEOWNERSHIP

    Section 1001. Promissory note requirement under housing 
repair loan program. Increases amount of promissory note 
(instead of use of liens on property) amounts from $2,500 to 
$7,500 (adjusted from late 1970's amount to account for home 
repairs, e.g. roofing, heating systems, windows, etc.) without 
going through the formal loan process.
    Section 1002. Limited partnership eligibility for farm 
labor housing loans. Technical amendment that clarifies that 
limited partnerships are eligible for loans under Sec. 514 
(Farm Labor Housing) in cases where the general partner is a 
nonprofit entity.
    Section 1003. Project accounting records and practices. 
Sets forth accounting and recordkeeping requirements, including 
maintaining accounting records in accordance with generally 
accepted accounting principles for all projects that receive 
funds under this program; retaining records available for 
inspection by the USDA Secretary for not less than six years, 
and other requirements.
    Section 1004. Definition of rural area. Extends designation 
of rural areas, for purposes of the Rural Housing Service 
housing programs, for a narrow category of communities until 
the 2010 census.
    Section 1005. Operating assistance for migrant farmworkers 
projects. Allows Sec. 521 operating assistance for farm labor 
housing complexes where ``mixed'' migrant and annual workers 
will live.
    Section 1006. Multifamily rental housing loan guarantee 
program. Allows Native Americans to become eligible borrowers 
under the multifamily loan guarantee program; authorizes a 
``balloon payment'' as a financing option; allow fees from 
lenders to be used to help offset program costs; and repeals 
existing prohibition against the transfer of property title 
from the lender to the Federal Government as well as the 
prohibition against the transfer of liability from one borrower 
to another.
    Section 1007. Enforcement provisions. Provides criminal 
penalties and civil sanctions for violations of program 
requirements.
    Section 1008. Amendments to title 18 of the United States 
Code. Amends Title 18 of the U.S. Code--Money Laundering--to 
strengthen enforcement and prosecution of program fraud and 
abuse.

               TITLE XI--MANUFACTURED HOUSING IMPROVEMENT

    Section 1101. Short title and references. States that this 
title may be cited as the ``Manufactured Housing Improvement 
Act.''
    Section 1102. Findings and purposes. Current law (P.L. 93-
383) provisions are replaced with a more positive, detailed 
statement of the original intent of Congress when it enacted 
the Federal Manufactured Home Construction and Safety Standards 
Act. Adds a consensus standards development process to the 
purpose of the act. Expresses the continuing need to facilitate 
the availability of affordable manufactured homes as well as 
the need for objective, performance-based standards and 
enhanced consumer protection.
    Section 1103. Definitions. Adds several definitions to 
Section 603 of current law (P.L. 93-383) concerning the 
consensus committee and the consensus standards development 
process (Section 1104). Adds a definition for the monitoring 
function and related definitions for Production Inplant Primary 
Inspection Agency (IPIA) and Design Approval Primary Inspection 
Agency (DAPIA) duties, which had not been previously defined. 
Consensus committee recommends specific regulations regarding 
thesefunctions to the Secretary of HUD. The term ``dealer'' has 
been replaced throughout with the term ``retailer.''
    Section 1104. Federal manufactured home construction and 
safety standards. Section 604 of current law (P.L. 93-383) is 
revised to establish a consensus committee that would submit 
recommendations to the Secretary of HUD for developing, 
amending and revising both the Federal Manufactured Home 
Construction and Safety Standards and the enforcement 
regulations. These recommendations would be published in the 
Federal Register for notice and comment prior to final adoption 
by the Secretary. The committee will be appointed by a 
recognized, voluntary, private consensus standards body chosen 
by the Secretary. The committee shall be composed of 21 
qualified individuals (7 producers of manufactured housing, 7 
users of manufactured housing, and 7 general interest groups 
and/or public officials). The committee would function in 
accordance with the American National Standards Institute 
(ANSI) procedures for the development and coordination of 
American National Standards.
    The revisions to section 604 would also clarify the scope 
of federal preemption to ensure that disparate state or local 
requirements do not affect the uniformity and comprehensive 
nature of the federal standards.
    Section 1105. Abolishment of National Manufactured Home 
Advisory Council; manufactured home installation. Section 605 
of existing law (P.L. 93-383) would be repealed, abolishing the 
national Manufactured Home Advisory Council, which is replaced 
by the consensus committee formed under Section 1104. A new 
section 605 is added, entitled ``Sec. 605. Manufactured Home 
Installations,'' which give states five years to adopt an 
installation program ``established by state law'' that 
includes: (1) installation standards, (2) the training and 
licensing of installers and (3) the inspection of the 
installation of manufactured homes. During this five-year 
period, the Secretary of the Department of Housing and Urban 
Development (HUD) and the Consensus Committee are charged with 
constructing a ``model'' manufactured housing installation 
program. In states that choose not to adopt an installation 
program, HUD may contract with an appropriate agent in those 
states to implement the ``model'' installation program.
    Section 1106. Public information. Amends current 
requirements governing cost information of any new standards 
submitted by manufacturers to the Secretary by requiring the 
Secretary to submit such cost information to the consensus 
committee for evaluation.
    Section 1107. Research, testing, development, and training. 
Requires HUD Secretary to conduct research, testing, 
development and training necessary to carry out the purposes of 
facilitating manufactured housing, including encouraging GSE's 
to develop and implement secondary market securitization 
programs for FHA manufactured home loans, and reviewing the 
programs for FHA manufactured home loans and developing any 
changes to such programs to promote the affordability of 
manufactured homes.
    Section 1108. Fees. Amends current section 620 (P.L. 93-
383) by allowing the Secretary to use industry label fees for 
the administration of the consensus committee, hiring 
additional program staff, for additional travel funding, 
funding of a non-career administrator to oversee the program, 
and for HUD's efforts to promote the availability and 
affordability of manufactured housing. Prohibits the use of 
label fees to fund any activity not expressly authorized by the 
act, makes expenditure of label fees subject to annual 
Congressional appropriations review, and eliminates HUD's 
annual report requirement. Requires HUD to be accountable for 
any fee increase by requiring notice and comment rulemaking.
    Section 1109. Dispute Resolution. In order to address 
problems that may arise with manufactured homes, Sec. 1109 
gives the states five years to adopt a dispute resolution 
program for the timely resolution of disputes between 
manufacturers, retailers, and installers regarding the 
responsibility for the correction or repair of defects in 
manufactured homes that are reported during the one year period 
beginning on the date of installation. This also requires state 
issuance of appropriate orders for the correction or repair of 
defects in the manufactured homes that are reported during the 
1-year period beginning on the date of installation under the 
dispute resolution program. In states that choose not to adopt 
their own dispute resolution program, HUD may contract with an 
appropriate agent in those states to implement a dispute 
resolution program.
    Section 1110. Elimination of annual report requirement. 
Eliminates existing annual reporting by the Secretary to 
Congress on manufactured housing standards.
    Section 1111. Effective date. Effective date of the 
legislation is the date of enactment, except that interpretive 
bulletins or orders published as a proposed rule prior to the 
date of enactment shall be unaffected.
    Section 1112. Savings provision. Existing manufactured 
housing standards are maintained in effect until the effective 
date of the Federal manufactured home construction and safety 
standards pursuant to the amendments made by this act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992

           *       *       *       *       *       *       *

TITLE I--HOUSING ASSISTANCE

           *       *       *       *       *       *       *

Subtitle E--Homeownership Programs

           *       *       *       *       *       *       *

SEC. 184.

  (a)  * * *

           *       *       *       *       *       *       *

  (i) Indian Housing Loan Guarantee Fund.--
          (1)  * * *

           *       *       *       *       *       *       *

          (5) Limitation on commitments to guarantee loans and 
        mortgages.--
                  (A)  * * *

           *       *       *       *       *       *       *

                  [(C) Limitation on outstanding aggregate 
                principal amount.--Subject to the limitations 
                in subparagraphs (A) and (B), the Secretary may 
                enter into commitments to guarantee loans under 
                this section in each of fiscal years 1997, 
                1998, 1999, 2000, and 2001 with an aggregate 
                outstanding principal amount not exceeding 
                $400,000,000 for each such fiscal year.]
                  (C) Limitation on outstanding aggregate 
                principal amount.--Subject to the limitations 
                in subparagraphs (A) and (B), the Secretary may 
                enter into commitments to guarantee loans under 
                this section in each fiscal year with an 
                aggregate outstanding principal amount not 
                exceeding such amount as may be provided in 
                appropriation Acts for such fiscal year.

           *       *       *       *       *       *       *

          (7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Guarantee Fund to 
        carry out this section such sums as may be necessary 
        for [each of fiscal years 1997, 1998, 1999, 2000, and 
        2001] each fiscal year.

           *       *       *       *       *       *       *

[SEC. 186. ENTERPRISE ZONE HOMEOWNERSHIP OPPORTUNITY GRANTS.

  [(a) Statement of Purpose.--It is the purpose of this 
section--
          [(1) to encourage homeownership by families in the 
        United States who are not otherwise able to afford 
        homeownership;
          [(2) to encourage the redevelopment of economically 
        depressed areas; and
          [(3) to provide better housing opportunities in 
        federally approved and equivalent State-approved 
        enterprise zones.
  [(b) Definitions.--For purposes of this section the following 
definitions shall apply:
          [(1) Home.--The term ``home'' means any 1- to 4-
        family dwelling. Such term includes any dwelling unit 
        in a condominium project or cooperative project 
        consisting of not more than 4 dwelling units, any town 
        house, and any manufactured home.
          [(2) Metropolitan statistical area.--The term 
        ``metropolitan statistical area'' means a metropolitan 
        statistical area as established by the Office of 
        Management and Budget.
          [(3) Nonprofit organization.--The term ``nonprofit 
        organization'' means a private nonprofit corporation, 
        or other private nonprofit legal entity, that is 
        approved by the Secretary as to financial 
        responsibility.
          [(4) Secretary.--The term ``Secretary'' means the 
        Secretary of Housing and Urban Development.
          [(5) State.--The term ``State'' means each of the 
        several States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
        American Samoa, the Northern Mariana Islands, the Trust 
        Territory of the Pacific Islands, and any other 
        territory or possession of the United States.
          [(6) Unit of general local government.--The term 
        ``unit of general local government'' means any borough, 
        city, county, parish, town, township, village, or other 
        general purpose political subdivision of a State.
  [(c) Assistance to Nonprofit Organizations.--
          [(1) In general.--The Secretary may provide 
        assistance to nonprofit organizations to carry out 
        enterprise zone homeownership opportunity programs to 
        promote homeownership in federally approved and 
        equivalent State-approved enterprise zones in 
        accordance with the provisions of this section. Such 
        assistance shall be made in the form of grants.
          [(2) Applications.--Applications for assistance under 
        this section shall be made in such form, and in 
        accordance with such procedures, as the Secretary may 
        prescribe.
  [(d) Eligible Uses of Assistance.--
          [(1) In general.--Any nonprofit organization 
        receiving assistance under this section shall use such 
        assistance to provide loans to families purchasing 
        homes constructed or rehabilitated in accordance with 
        an enterprise zone homeownership opportunity program 
        approved under this section.
          [(2) Specific requirements.--Each loan made to a 
        family under this subsection shall--
                  [(A) be secured by a second mortgage held by 
                the Secretary on the property involved;
                  [(B) be in an amount not exceeding $15,000;
                  [(C) bear no interest; and
                  [(D) be repayable to the Secretary upon the 
                sales, lease, or other transfer of such 
                property.
  [(e) Program Requirements.--
          [(1) In general.--Assistance provided under this 
        section may be used only in connection with an 
        enterprise zone homeownership opportunity program of 
        construction or rehabilitation of homes.
          [(2) Family need.--Each family purchasing a home 
        under this section shall--
                  [(A) have a family income on the date of such 
                purchase that is not more than the median 
                income for a family of 4 persons (adjusted for 
                family size) in the metropolitan statistical 
                area in which a federally approved or 
                equivalent State-approved enterprise zone is 
                located; and
                  [(B) not have owned a home during the 3-year 
                period preceding such purchase.
          [(3) Downpayment.--Each family purchasing a home 
        under this section shall make a downpayment of not less 
        than 5 percent of the sale price of such home.
          [(4) Leasing prohibition.--No family purchasing a 
        home under this section may lease such home.
  [(f) Terms and Conditions of Assistance.--
          [(1) Local consultation.--No proposed enterprise zone 
        homeownership opportunity program may be approved by 
        the Secretary under this section unless the applicant 
        involved demonstrates to the satisfaction of the 
        Secretary that--
                  [(A) it has consulted with and received the 
                support of residents of the neighborhood in 
                which such program is to be located; and
                  [(B) it has the approval of each unit of 
                general local government in which such program 
                is to be located.
          [(2) Program schedule.--Each applicant for assistance 
        under this section shall submit to the Secretary an 
        estimated schedule for completion of its proposed 
        enterprise zone homeownership opportunity program, 
        which schedule shall have been agreed to by each unit 
        of general local government in which such program is to 
        be located.
          [(3) Location.--All homes constructed or 
        rehabilitated under such program will be located in 
        federally approved or equivalent State-approved 
        enterprise zones.
          [(4) Sales contracts.--Sales contracts entered into 
        under such program will contain provisions requiring 
        repayment of any loan made under this section upon the 
        sale or other transfer of the home involved, unless the 
        Secretary approves a transfer of such home without 
        repayment (in which case the second mortgage held by 
        the Secretary on such home shall remain in force until 
        such loan is fully repaid).
  [(g) Program Selection Criteria.--
          [(1) In general.--In selecting enterprise zone 
        homeownership opportunity programs for assistance under 
        this section from among eligible programs, the 
        Secretary shall make such selection on the basis of the 
        extent to which--
                  [(A) non-Federal public or private entities 
                will contribute land necessary to make each 
                program feasible;
                  [(B) non-Federal public and private financial 
                or other contributions (including tax 
                abatements, waivers of fees related to 
                development, waivers of construction, 
                development, or zoning requirements, and direct 
                financial contributions) will reduce the cost 
                of home constructed or rehabilitated under each 
                program;
                  [(C) each program will produce the greatest 
                number of units for the least amount of 
                assistance provided under this section, taking 
                into consideration the cost differences among 
                different market areas; and
                  [(D) each program provides for the 
                involvement of local residents in the planning, 
                and construction or rehabilitation, of homes.
          [(2) Exception.--To the extent that non-Federal 
        public entities are prohibited by the law of any State 
        from making any form of contribution described in 
        subparagraph (A) or (B) of paragraph (1), the Secretary 
        shall not consider such form of contribution in 
        evaluating such program.
  [(h) Regulations.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall issue final 
regulations to carry out the provisions of this title. Any such 
regulations shall be issued in accordance with section 553 of 
title 5, United States Code, notwithstanding the provisions of 
subsection (a)(2) of such section.
  [(i) Funding.--There are authorized to be appropriated to 
carry out this section $30,000,000 in each of fiscal years 1993 
and 1994.]

SEC. 186. HOMEOWNERSHIP ZONE GRANTS.

  (a) Authority.--The Secretary of Housing and Urban 
Development may make grants to units of general local 
government to assist homeownership zones. Homeownership zones 
are contiguous, geographically defined areas, primarily 
residential in nature, in which large-scale development 
projects are designed to reclaim distressed neighborhoods by 
creating homeownership opportunities for low- and moderate-
income families. Projects in homeownership zones are intended 
to serve as a catalyst for private investment, business 
creation, and neighborhood revitalization.
  (b) Eligible Activities.--Amounts made available under this 
section may be used for projects that include any of the 
following activities in the homeownership zone:
          (1) Acquisition, construction, and rehabilitation of 
        housing.
          (2) Site acquisition and preparation, including 
        demolition, construction, reconstruction, or 
        installation of public and other site improvements and 
        utilities directly related to the homeownership zone.
          (3) Direct financial assistance to homebuyers.
          (4) Homeownership counseling.
          (5) Relocation assistance.
          (6) Marketing costs, including affirmative marketing 
        activities.
          (7) Other project-related costs.
          (8) Reasonable administrative costs (up to 5 percent 
        of the grant amount).
          (9) Other housing-related activities proposed by the 
        applicant as essential to the success of the 
        homeownership zone and approved by the Secretary.
  (c) Application.--To be eligible for a grant under this 
section, a unit of general local government shall submit an 
application for a homeownership zone grant in such form and in 
accordance with such procedures as the Secretary shall 
establish.
  (d) Selection Criteria.--The Secretary shall select 
applications for funding under this section through a national 
competition, using selection criteria established by the 
Secretary, which shall include--
          (1) the degree to which the proposed activities will 
        result in the improvement of the economic, social, and 
        physical aspects of the neighborhood and the lives of 
        its residents through the creation of new homeownership 
        opportunities;
          (2) the levels of distress in the homeownership zone 
        as a whole, and in the immediate neighborhood of the 
        project for which assistance is requested;
          (3) the financial soundness of the plan for financing 
        homeownership zone activities;
          (4) the leveraging of other resources; and
          (5) the capacity to successfully carry out the plan.
  (e) Grant Approval Amounts.--The Secretary may establish a 
maximum amount for any grant for any funding round under this 
section. A grant may not be made in an amount that exceeds the 
amount that the Secretary determines is necessary to fund the 
project for which the application is made.
  (f) Program Requirements.--A homeownership zone proposal 
shall--
          (1) provide for a significant number of new 
        homeownership opportunities that will make a visible 
        improvement in an immediate neighborhood;
          (2) not be inconsistent with such planning and design 
        principles as may be prescribed by the Secretary;
          (3) be designed to stimulate additional investment in 
        that area;
          (4) provide for partnerships with persons or entities 
        in the private and nonprofit sectors;
          (5) incorporate a comprehensive approach to 
        revitalization of the neighborhood;
          (6) establish a detailed time-line for commencement 
        and completion of construction activities; and
          (7) provide for affirmatively furthering fair 
        housing.
  (g) Income Targeting.--At least 51 percent of the homebuyers 
assisted with funds under this section shall have household 
incomes at or below 80 percent of median income for the area, 
as determined by the Secretary.
  (h) Environmental Review.--For purposes of environmental 
review, decisionmaking, and action pursuant to the National 
Environmental Policy Act of 1969 and other provisions of law 
that further the purposes of such Act, a grant under this 
section shall be treated as assistance under the HOME 
Investment Partnerships Act and shall be subject to the 
regulations issued by the Secretary to implement section 288 of 
such Act.
  (i) Review, Audit, and Reporting.--The Secretary shall make 
such reviews and audits and establish such reporting 
requirements as may be necessary or appropriate to determine 
whether the grantee has carried out its activities in a timely 
manner and in accordance with the requirements of this section. 
The Secretary may adjust, reduce, or withdraw amounts made 
available, or take other action as appropriate, in accordance 
with the Secretary's performance reviews and audits under this 
section.
  (j) Authorization.--There is authorized to be appropriated to 
carry out this section $25,000,000 for fiscal year 2001 and 
such sums as may be necessary for fiscal year 2002, to remain 
available until expended.

           *       *       *       *       *       *       *

TITLE XII--REMOVAL OF REGULATORY BARRIERS TO AFFORDABLE HOUSING

           *       *       *       *       *       *       *

SEC. 1204. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES AND 
                    IMPLEMENTATION.

  [(a) In General.--The amounts set aside under section 107 of 
the Housing and Community Development Act of 1974 for the 
purpose of this subsection shall be available for grants under 
subsection (b) and (c).]
  (a) Funding.--There is authorized to be appropriated for 
grants under subsections (b) and (c) $15,000,000 for fiscal 
year 2001 and such sums as may be necessary for each of fiscal 
years 2002, 2003, 2004, and 2005.
  (b) [State Grants] Grant Authority.--The Secretary may make 
grants to States and units of general local government 
(including consortia of such governments) for the costs of 
developing and implementing strategies to remove regulatory 
barriers to affordable housing, including the costs of--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) developing legislation to provide [a State 
        program to reduce State and local] State, local, or 
        regional programs to reduce regulatory barriers and 
        developing a strategy for adoption of such legislation;
          (4) developing model State or local standards and 
        ordinances to reduce regulatory barriers and assisting 
        in the adoption and use of the standards and 
        ordinances;
          (5) carrying out the simplification and consolidation 
        of [State] administrative procedures and processes 
        constituting regulatory barriers to affordable housing, 
        including the issuance of permits; and

           *       *       *       *       *       *       *

  [(c) Local Grants.--The Secretary may make grants to units of 
general local government for the costs of developing and 
implementing strategies to remove regulatory barriers to 
affordable housing, including the costs of--
          [(1) identifying, assessing, and monitoring local 
        regulatory barriers;
          [(2) identifying local policies (including laws and 
        regulations) that permit or encourage regulatory 
        barriers;
          [(3) developing legislation to provide a local 
        program to reduce local regulatory barriers and 
        developing a strategy for adoption of such legislation;
          [(4) developing model local standards and ordinances 
        to reduce regulatory barriers and assisting in the 
        adoption and use of the standards and ordinances; and
          [(5) carrying out the simplification and 
        consolidation of local administrative procedures and 
        processes constituting regulatory barriers to 
        affordable housing, including the issuance of permits.]

           *       *       *       *       *       *       *

  (e) Application and Selection.--The Secretary shall provide 
for the form and manner of applications for grants under this 
section, which shall describe how grant amounts will assist the 
State or unit of general local government in developing and 
implementing strategies to remove regulatory barriers to 
affordable housing. The Secretary shall establish criteria for 
approval of applications under this subsection [and for the 
selection of units of general local government to receive 
grants under subsection (f)(2)] and such criteria shall require 
that grant amounts be used in a manner consistent with the 
strategy contained in the comprehensive housing affordability 
strategy for the jurisdiction pursuant to section 105(b)(4) of 
the Cranston-Gonzalez National Affordable Housing Act.
  [(f) Allocation of Amounts.--
          [(1) State grants.--
                  [(A) In general.--Of the total amount 
                appropriated for each fiscal year to carry out 
                this subsection, the Secretary shall use two-
                thirds of such amount to provide grants under 
                subsection (b) to each State submitting an 
                application that is approved by the Secretary. 
                Such amounts shall be allocated among the 
                States based upon the measure of need (for the 
                whole State) of each State, as determined under 
                section 217(b)(1)(A) (excluding adjustments 
                under section 217(b)(1)(D)) of the Cranston-
                Gonzalez National Affordable Housing Act, 
                except that the minimum grant amount for each 
                fiscal year grant shall be $100,000 (to the 
                extent sufficient amounts are made available).
                  [(B) Pro rata distribution.--If insufficient 
                amounts are made available for grants in the 
                amount under subparagraph (A) to each State 
                submitting an approved application, each such 
                State shall receive a pro rata portion of such 
                amount based on the ratio of the population of 
                such State to the population of all States.
          [(2) Local grants.--Of the total amount appropriated 
        for each fiscal year to carry out this section, the 
        Secretary shall use one-third of such amount to provide 
        grants on a competitive basis to units of general local 
        government based on the proposed uses of such amounts, 
        as provided in the application. Each grant made with 
        such amounts shall be in an amount not less than 
        $10,000.]
  (f) Selection of Grantees.--To the extent amounts are made 
available to carry out this section, the Secretary shall 
provide grants on a competitive basis to eligible grantees 
based on the proposed uses of such amounts, as provided in 
applications under subsection (e).

           *       *       *       *       *       *       *

SEC. 1205. REGULATORY BARRIERS CLEARINGHOUSE.

  (a) Establishment.--The Secretary of Housing and Urban 
Development shall establish a clearinghouse to [receive, 
collect, process, and assemble] serve as a national repository 
to receive, collect, process, assemble, and disseminate 
information regarding--
          (1) State and local laws, regulations, and policies 
        affecting the development, maintenance, improvement, 
        availability, or cost of affordable housing[, 
        including] (including tax policies affecting land and 
        other property, land use controls, zoning ordinances, 
        building codes, fees and charges, growth limits, and 
        policies that affect the return on investment in 
        residential property), and the prevalence and effects 
        on affordable housing of such laws, regulations, and 
        policies;
          (2) State and local activities, strategies, and plans 
        to remove or ameliorate the negative effects, if any, 
        of such laws, regulations, and policies, including 
        particularly innovative or successful activities, 
        strategies, and plans; and
          (3) State and local strategies, activities and plans 
        that promote affordable housing and housing 
        desegregation, including particularly innovative or 
        successful strategies, activities, and plans.
  (b) Functions.--The clearinghouse established under 
subsection (a) shall--
          (1) respond to inquiries from State and local 
        governments, other organizations, and individuals 
        requesting information regarding State and local laws, 
        regulations, policies, activities, strategies, and 
        plans described in subsection (a); [and]
          (2) provide assistance in identifying, examining, and 
        understanding such laws, regulations, policies, 
        activities, strategies, and plans[.]; and
          (3) by making available through a World Wide Web site 
        of the Department, by electronic mail, or otherwise, 
        provide to each housing agency of a unit of general 
        local government that serves an area having a 
        population greater than 100,000, an index of all State 
        and local strategies and plans submitted under 
        subsection (a) to the clearinghouse, which--
                  (A) shall describe the types of barriers to 
                affordable housing that the strategy or plan 
                was designed to ameliorate or remove; and
                  (B) shall, not later than 30 days after 
                submission to the clearinghouse of any new 
                strategy or plan, be updated to include the new 
                strategy or plan submitted.
  (c) Organization.--The clearinghouse under this section shall 
be established within the Office of Policy Development of the 
Department of Housing and Urban Development and shall be under 
the direction of the Assistant Secretary for Policy Development 
and Research.
  (d) Timing.--The clearinghouse under this section (as amended 
by section 105 of the Housing Affordability Barrier Removal Act 
of 2000) shall be established and commence carrying out the 
functions of the clearinghouse under this section not later 
than 1 year after the date of the enactment of such Act. The 
Secretary of Housing and Urban Development may comply with the 
requirements under this section by reestablishing the 
clearinghouse that was originally established to comply with 
this section and updating and improving such clearinghouse to 
the extent necessary to comply with the requirements of this 
section as in effect pursuant to the enactment of such Act.
                              ----------                              

HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974

           *       *       *       *       *       *       *

TITLE I--COMMUNITY DEVELOPMENT

           *       *       *       *       *       *       *

                              definitions

  Sec. 102. (a) As used in this title--
          (1)  * * *

           *       *       *       *       *       *       *

          (5) The term ``city'' means (A) any unit of general 
        local government which is classified as a municipality 
        by the United States Bureau of the Census or (B) any 
        other unit of general local government which is a town 
        or township and which, in the determination of the 
        Secretary, (i) possesses powers and performs functions 
        comparable to those associated with municipalities, 
        (ii) is closely settled, and (iii)(I) contains within 
        its boundaries no incorporated places as defined by the 
        United States Bureau of the Census which have not 
        entered into cooperation agreements with such town or 
        township to undertake or to assist in the undertaking 
        of essential community development and housing 
        assistance activities, or (II) has a population in its 
        unincorporated areas of not less than 450,000, except 
        that a town or township which is designated as a city 
        pursuant to this subclause shall have only its 
        unincorporated areas considered as a city for purposes 
        of this title.
          (6)(A)  * * *

           *       *       *       *       *       *       *

          (D) Such term also includes a county that--
                  (i)  * * *

           *       *       *       *       *       *       *

                  (v)(I) has a population of 175,000 or more 
                (including the population of metropolitan 
                cities therein), (II) before January 1, 1975, 
                was designated by the Secretary of Defense 
                pursuant to section 608 of the Military 
                Construction Authorization Act, 1975 (Public 
                Law 93-552; 88 Stat. 1763), as a Trident 
                Defense Impact Area, and (III) has located 
                therein not less than 1 unit of general local 
                government that was classified as a 
                metropolitan city and (a) for which county each 
                such unit of general local government therein 
                has relinquished its classification as a 
                metropolitan city under the 6th sentence of 
                paragraph (4), or (b) that has entered into 
                cooperative agreements with each metropolitan 
                city therein to undertake or to assist in the 
                undertaking of essential community development 
                and housing assistance activities; [or]
                  (vi) has entered into a local cooperation 
                agreement with a metropolitan city that 
                received assistance under section 106 because 
                of such classification, and has elected under 
                paragraph (4) to have its population included 
                with the population of the county for the 
                purposes of qualifying as an urban county, 
                except that to qualify as an urban county under 
                this clause, the county must--
                          (I)  * * *

           *       *       *       *       *       *       *

                          (III) have had a Federal naval 
                        installation that was more than 100 
                        years old closed by action of the Base 
                        Closure and Realignment Commission 
                        appointed for 1993 under the Base 
                        Closure and Realignment Act of 1990, 
                        directly resulting in a loss of 
                        employment by more than 7,000 Federal 
                        Government civilian employees and more 
                        than 15,000 active duty military 
                        personnel, which naval installation was 
                        located within one mile of an 
                        enterprise community designated by the 
                        Secretary pursuant to section 1391 of 
                        the Internal Revenue Code of 1986, 
                        which enterprise community has a 
                        population of not less than 20,000, 
                        according to the 1990 decennial census 
                        of the Bureau of the Census of the 
                        Department of Commerce[.]; or
                  (vii)(I) has consolidated its government with 
                one or more municipal governments, such that 
                within the county boundaries there are no 
                unincorporated areas, (II) has a population of 
                not less than 650,000, over which the 
                consolidated government has the authority to 
                undertake essential community development and 
                housing assistance activities, (III) for more 
                than 10 years, has been classified as an 
                entitlement area for purposes of allocating and 
                distributing funds under section 106, and (IV) 
                as of the date of the enactment of this clause, 
                has over 90 percent of the county's population 
                within the jurisdiction of the consolidated 
                government.

           *       *       *       *       *       *       *

          (F) Notwithstanding any other provision of this 
        paragraph, any county that was classified as an urban 
        county pursuant to subparagraph (A) for fiscal year 
        1999, includes 10 cities each having a population of 
        less than 50,000, and has a population in its 
        unincorporated areas of 190,000 or more but less than 
        200,000, shall thereafter remain classified as an urban 
        county.
  (d)(1) With respect to program years beginning with the 
program year for which grants are made available from amounts 
appropriated for fiscal year 1982 under section 103, the 
population of any unit of general local government which is 
included in that of an urban county as provided in subparagraph 
(A)(ii) or (D) of subsection (a)(6) shall be included in the 
population of such urban county for three program years 
beginning with the program year in which its population was 
first so included and shall not otherwise be eligible for a 
grant under section 106 as a separate entity, unless the urban 
county does not receive a grant for any year during such three-
year period.
  (2) Notwithstanding paragraph (1), a town or township that is 
classified as a city by reason of subclause (II) of section 
102(a)(5)(B)(iii) shall be treated, for purposes of eligibility 
for a grant under section 106(b)(1) from amounts made available 
for a fiscal year beginning after the date of the enactment of 
the American Homeownership and Economic Opportunity Act of 
2000, as an entity separate from the urban county in which it 
is located.

           *       *       *       *       *       *       *

                             authorizations

  Sec. 103. (a) In General.--The Secretary is authorized to 
make grants to States, units of general local government, and 
Indian tribes to carry out activities in accordance with the 
provisions of this title. [For purposes of assistance under 
section 106, there are authorized to be appropriated 
$4,000,000,000 for fiscal year 1993 and $4,168,000,000 for 
fiscal year 1994.] For purposes of assistance under section 
106, there is authorized to be appropriated $4,900,000,000 for 
fiscal year 2001 and such sums as may be necessary for each of 
fiscal years 2002, 2003, 2004, and 2005.
  (b) Prohibition of Set-Asides.--Except as provided in 
paragraphs (1) and (2) of section 106(a) and section 107, 
amounts appropriated pursuant to subsection (a) of this section 
or otherwise to carry out this title (other than section 108) 
shall be used only for formula-based grants allocated pursuant 
to section 106 and may not be otherwise used unless the 
provision of law providing for such other use specifically 
refers to this subsection and specifically states that such 
provision modifies or supersedes the provisions of this 
subsection.

                   statement of activities and review

  Sec. 104. (a)(1)  * * *

           *       *       *       *       *       *       *

  (c) A grant may be made under section 106(b) only if the unit 
of general local government certifies that it is following--
          (1) a current housing affordability strategy which 
        has been approved by the Secretary in accordance with 
        section 105 of the Cranston-Gonzalez National 
        Affordable Housing Act, which shall include making a 
        good faith effort to carry out the strategy established 
        under section 105(b)(4) of such Act by the unit of 
        general local government to remove barriers to 
        affordable housing, or

           *       *       *       *       *       *       *

                          eligible activities

  Sec. 105. (a) Activities assisted under this title may 
include only--
          (1)  * * *

           *       *       *       *       *       *       *

          (8) provision of public services, including but not 
        limited to those concerned with employment, crime 
        prevention, child care, health, drug abuse, education, 
        energy conservation, welfare or recreation needs, if 
        such services have not been provided by the unit of 
        general local government (through funds raised by such 
        unit, or received by such unit from the State in which 
        it is located) during any part of the twelve-month 
        period immediately preceding the date of submission of 
        the statement with respect to which funds are to be 
        made available under this title, and which are to be 
        used for such services, unless the Secretary finds that 
        the discontinuation of such services was the result of 
        events not within the control of the unit of general 
        local government, except that not more that 15 per 
        centum of the amount of any assistance to a unit of 
        general local government (or in the case of nonentitled 
        communities not more than 15 per centum statewide) 
        under this title including program income may be used 
        for activities under this paragraph unless such unit of 
        general local government used more than 15 percent of 
        the assistance received under this title for fiscal 
        year 1982 or fiscal year 1983 for such activities 
        (excluding any assistance received pursuant to Public 
        Law 98-8), in which case such unit of general local 
        government may use not more than the percentage or 
        amount of such assistance used for such activities for 
        such fiscal year, whichever method of calculation 
        yields the higher amount, except that of any amount of 
        assistance under this title (including program income) 
        in each of [fiscal years 1993 through 1999 to the City 
        of Los Angeles and County of Los Angeles, each such 
        unit of general government] fiscal years 1993 through 
        2006 to the City of Los Angeles, the County of Los 
        Angeles, or any other unit of general local government 
        located in the County of Los Angeles, such city, such 
        county, or each such unit of general local government, 
        respectively, may use not more than 25 percent in each 
        such fiscal year for activities under this paragraph, 
        and except that of any amount of assistance under this 
        title (including program income) in each of fiscal 
        years 1999, 2000, and 2001, to the City of Miami, such 
        city may use not more than 25 percent in each fiscal 
        year for activities under this paragraph;

           *       *       *       *       *       *       *

          (22) provision of assistance to public and private 
        organizations, agencies, and other entities (including 
        nonprofit and for-profit entities) to enable such 
        entities to facilitate economic development by--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) providing general support (such as peer 
                support programs and counseling) to owners of 
                microenterprises and persons developing 
                microenterprises; [and]
          (23) activities necessary to make essential repairs 
        and to pay operating expenses necessary to maintain the 
        habitability of housing units acquired through tax 
        foreclosure proceedings in order to prevent abandonment 
        and deterioration of such housing in primarily low- and 
        moderate-income neighborhoods[.];
          (24) provision of direct assistance to facilitate and 
        expand homeownership among uniformed employees 
        (including policemen, firemen, and sanitation and other 
        maintenance workers) of, and teachers who are employees 
        of, the metropolitan city or urban county (or an agency 
        or school district serving such city or county) 
        receiving grant amounts under this title pursuant to 
        section 106(b) or the unit of general local government 
        (or an agency or school district serving such unit) 
        receiving such grant amounts pursuant to section 
        106(d), except that--
                  (A) such assistance may only be provided on 
                behalf of such employees who are first-time 
                homebuyers under the meaning given such term in 
                section 104(14) of the Cranston-Gonzalez 
                National Affordable Housing Act (42 U.S.C. 
                12704(14)), except that, for purposes of this 
                paragraph, such section shall be applied by 
                substituting ``section 105(a)(24) of the 
                Housing and Community Development Act of 1974'' 
                for ``title II'';
                  (B) notwithstanding section 102(a)(20)(B) or 
                any other provision of this title, such 
                assistance may be provided on behalf of such 
                employees whose family incomes do not exceed--
                          (i) 115 percent of the median income 
                        of the area involved, as determined by 
                        the Secretary with adjustments for 
                        smaller and larger families; or
                          (ii) with respect only to areas that 
                        the Secretary determines have high 
                        housing costs, taking into 
                        consideration median house prices and 
                        median family incomes for the area, 150 
                        percent of the median income of the 
                        area involved, as determined by the 
                        Secretary with adjustments for smaller 
                        and larger families;
                  (C) such assistance shall be used only for 
                acquiring principal residences for such 
                employees, in a manner that involves obligating 
                amounts with respect to any particular mortgage 
                over a period of one year or less, by--
                          (i) providing amounts for 
                        downpayments on mortgages;
                          (ii) paying reasonable closing costs 
                        normally associated with the purchase 
                        of a residence;
                          (iii) obtaining pre- or post-purchase 
                        counseling relating to the financial 
                        and other obligations of homeownership; 
                        or
                          (iv) subsidizing mortgage interest 
                        rates; and
                  (D) any residence purchased using assistance 
                provided under this paragraph shall be subject 
                to restrictions on resale that are--
                          (i) established by the metropolitan 
                        city, urban county, or unit of general 
                        local government providing such 
                        assistance; and
                          (ii) determined by the Secretary to 
                        be appropriate to comply with 
                        subparagraphs (A) and (B) of section 
                        215(b)(3) of the Cranston-Gonzalez 
                        National Affordable Housing Act (42 
                        U.S.C. 12745(b)(3)), except that, for 
                        purposes of this paragraph, such 
                        subparagraphs shall be applied by 
                        substituting ``section 105(a)(24) of 
                        the Housing and Community Development 
                        Act of 1974'' for ``this title'';
          (25) lead-based paint hazard evaluation and 
        reduction, as defined in section 1004 of the 
        Residential Lead-Based Paint Hazard Reduction Act of 
        1992[.]; and
          (26) environmental cleanup and economic development 
        activities related to Brownfields projects in 
        conjunction with the appropriate environmental 
        regulatory agencies.

           *       *       *       *       *       *       *

  (c)(1)  * * *

           *       *       *       *       *       *       *

  (5) Homeownership assistance for municipal employees.--
Notwithstanding any other provision of this title, any assisted 
activity described in subsection (a)(24) of this section shall 
be considered, for purposes of this title, to benefit persons 
of low and moderate income and to be directed toward the 
objective under section 101(c)(3).

           *       *       *       *       *       *       *

                         special purpose grants

  Sec. 107. (a) Set-Aside.--
          (1) In general.--For each fiscal year (except as 
        otherwise provided in this paragraph), of the total 
        amount provided in appropriation Acts under section 103 
        for the fiscal year, $60,000,000 shall be set aside for 
        grants under subsection (b) for such year for the 
        following purposes:
                  (A)  * * *

           *       *       *       *       *       *       *

                  (G) $2,000,000 shall be available in fiscal 
                year 1993 for a grant to the City of 
                Bridgeport, Connecticut, subject to the 
                approval of sufficient amounts in an 
                appropriation Act and to binding commitments 
                made by the City of Bridgeport and the State of 
                Connecticut that the city and State, 
                respectively, will supplement such amount with 
                $2,000,000 of additional funds; and
                  [(H) $15,000,000 shall be available for 
                grants under the Removal of Regulatory Barriers 
                to Affordable Housing Act of 1992; and]
                  [(I)] (H) $7,500,000 shall be available to 
                carry out the Community Outreach Partnership 
                Act of 1992.
          (2) Treatment of grants.--Any grants made under this 
        section shall be in addition to any other grants that 
        may be made under this title to the same entities for 
        the same purposes.

           *       *       *       *       *       *       *

                              ----------                              

NATIONAL HOUSING ACT

           *       *       *       *       *       *       *

TITLE I--HOUSING RENOVATION AND MODERNIZATION

           *       *       *       *       *       *       *

                  insurance of financial institutions

    Sec. 2. (a)  * * *

           *       *       *       *       *       *       *

    (b)(1)  * * *

           *       *       *       *       *       *       *

    (3) No insurance shall be granted under this section to any 
such financial institution with respect to any obligation 
representing any such loan, advance of credit, or purchase by 
it if the term to maturity of such loan, advance of credit or 
purchase exceeds--
          (A)  * * *

           *       *       *       *       *       *       *

          (E) [fifteen] twenty years and thirty-two days if 
        made for the purpose of financing the purchase, by the 
        owner of a manufactured home which is the principal 
        residence of that owner, of a suitably developed lot on 
        which to place that manufactured home;

           *       *       *       *       *       *       *

TITLE II--MORTGAGE INSURANCE

           *       *       *       *       *       *       *

                         insurance of mortgages

    Sec. 203. (a)  * * *
    (b) To be eligible for insurance under this section a 
mortgage shall--
          (1)  * * *
          (2) Involve a principal obligation (including such 
        initial service charges, appraisal, inspection, and 
        other fees as the Secretary shall approve) in an 
        amount--
                  (A) not to exceed the lesser of--
                          (i) in the case of a 1-family 
                        residence, 95 percent of the median 1-
                        family house price in the area, as 
                        determined by the Secretary; in the 
                        case of a 2-family residence, 107 
                        percent of such median price; in the 
                        case of a 3-family residence, 130 
                        percent of such median price; or in the 
                        case of a 4-family residence, 150 
                        percent of such median price; or

           *       *       *       *       *       *       *

          [(B) except as otherwise provided in this paragraph 
        (2), not to exceed an amount equal to the sum of--
                  [(i) 97 percent of $25,000 of the appraised 
                value of the property, as of the date the 
                mortgage is accepted for insurance;
                  [(ii) 95 percent of such value in excess of 
                $25,000 but not in excess of $125,000; and
                  [(iii) 90 percent of such value in excess of 
                $125,000.]
                  (B) not to exceed an amount equal to the sum 
                of--
                          (i) the amount of the mortgage 
                        insurance premium paid at the time the 
                        mortgage is insured; and
                          (ii)(I) in the case of a mortgage for 
                        a property with an appraised value 
                        equal to or less than $50,000, 98.75 
                        percent of the appraised value of the 
                        property;
                          (II) in the case of a mortgage for a 
                        property with an appraised value in 
                        excess of $50,000 but not in excess of 
                        $125,000, 97.65 percent of the 
                        appraised value of the property;
                          (III) in the case of a mortgage for a 
                        property with an appraised value in 
                        excess of $125,000, 97.15 percent of 
                        the appraised value of the property; or
                          (IV) notwithstanding subclauses (II) 
                        and (III), in the case of a mortgage 
                        for a property with an appraised value 
                        in excess of $50,000 that is located in 
                        an area of the State for which the 
                        average closing cost exceeds 2.10 
                        percent of the average, for the State, 
                        of the sale price of properties located 
                        in the State for which mortgages have 
                        been executed, 97.75 percent of the 
                        appraised value of the property.
        For purposes of the preceding sentence, the term 
        ``area'' means a metropolitan statistical area as 
        established by the Office of Management and Budget; and 
        the median 1-family house price for an area shall be 
        equal to the median 1-family house price of the county 
        within the area that has the highest such median price. 
        For purposes of this paragraph, the term ``average 
        closing cost'' means, with respect to a State, the 
        average, for mortgages executed for properties that are 
        located within the State, of the total amounts (as 
        determined by the Secretary) of initial service 
        charges, appraisal, inspection, and other fees (as the 
        Secretary shall approve) that are paid in connection 
        with such mortgages. [If the mortgage to be insured 
        under this section covers property on which there is 
        located a one- to four-family residence, and the 
        appraised value of the property, as of the date the 
        mortgage is accepted for insurance, does not exceed 
        $50,000, the principal obligation may be in an amount 
        not to exceed 97 percent of such appraised value. If 
        the mortgagor is a veteran and the mortgage to be 
        insured under this section covers property upon which 
        there is located a dwelling designed principally for a 
        one-family residence, the principal obligation may be 
        in an amount equal to the sum of (i) 100 per centum of 
        $25,000 of the appraised value of the property as of 
        the date the mortgage is accepted for insurance, and 
        (ii) 95 per centum of such value in excess of $25,000.] 
        Notwithstanding any other provision of this section, in 
        any case where the dwelling is not approved for 
        mortgage insurance prior to the beginning of 
        construction, such mortgage shall not exceed 90 per 
        centum of the entire appraised value of the property as 
        of the date the mortgage is accepted for insurance, 
        unless (i) the dwelling was completed more than one 
        year prior to the application for mortgage insurance, 
        or (ii) the dwelling was approved for guaranty, 
        insurance, or a direct loan under chapter 37 of title 
        38, United States Code, prior to the beginning of 
        construction, or (iii) the dwelling is covered by a 
        consumer protection or warranty plan acceptable to the 
        Secretary and satisfies all requirements which would 
        have been applicable if such dwelling had been approved 
        for mortgage insurance prior to the beginning of 
        construction. As used herein, the term ``veteran'' 
        means any person who served on active duty in the armed 
        forces of the United States for a period of not less 
        than 90 days (or as certified by the Secretary of 
        Defense as having performed extra-hazardous service), 
        and who was discharged or released therefrom under 
        conditions other than dishonorable, except that persons 
        enlisting in the armed forces after September 7, 1980, 
        or entering active duty after October 16, 1981, shall 
        have their eligibility determined in accordance with 
        section 3103A(d) of title 38, United States Code.
          [Notwithstanding any other provision of this 
        paragraph, the amount which may be insured under this 
        section may be increased by up to 20 percent if such 
        increase is necessary to account for the increased cost 
        of the residence due to the installation of a solar 
        energy system (as defined in subparagraph (3) of the 
        last paragraph of section 2(a) of this Act) therein.
          [Except with respect to mortgages executed by 
        mortgagors who are veterans, a mortgage may not involve 
        a principal obligation (including such initial service 
        charges, appraisal, inspection, and other fees as the 
        Secretary shall approve) in excess of 98.75 percent of 
        the appraised value of the property (97.75 percent, in 
        the case of a mortgage with an appraised value in 
        excess of $50,000), plus the amount of the mortgage 
        insurance premium paid at the time the mortgage is 
        insured. For purposes of the preceding sentence, the 
        term ``appraised value'' means the amount set forth in 
        the written statement required under section 226, or a 
        similar amount determined by the Secretary if section 
        226 does not apply. Notwithstanding the authority of 
        the Secretary to establish the terms of insurance under 
        this section and approve the initial service charges, 
        appraisal, inspection, and other fees (and subject to 
        any other limitations under this section on the amount 
        of a principal obligation), the Secretary may not (by 
        regulation or otherwise) limit the percentage or amount 
        of any such approved charges and fees that may be 
        included in the principal obligation of a mortgage.
          [Notwithstanding any other provision of this 
        paragraph, the Secretary may not insure, or enter into 
        a commitment to insure, a mortgage under this section 
        that is executed by a first-time homebuyer and that 
        involves a principal obligation (including such initial 
        service charges, appraisal, inspection, and other fees 
        as the Secretary shall approve) in excess of 97 percent 
        of the appraised value of the property unless the 
        mortgagor has completed a program of counseling with 
        respect to the responsibilities and financial 
        management involved in homeownership that is approved 
        by the Secretary; except that the Secretary may, in the 
        discretion of the Secretary, waive the applicability of 
        this requirement.
          [In conjunction with any loan insured under this 
        section, an original lender shall provide to each 
        prospective borrower a disclosure notice that provides 
        a one page analysis of mortgage products offered by 
        that lender and for which the borrower would qualify. 
        This notice shall include: (i) a generic analysis 
        comparing the note rate (and associated interest 
        payments), insurance premiums, and other costs and fees 
        that would be due over the life of the loan for a loan 
        insured by the Secretary under this subsection with the 
        note rates, insurance premiums (if applicable), and 
        other costs and fees that would be expected to be due 
        if the mortgagor obtained instead other mortgage 
        products offered by the lender and for which the 
        borrower would qualify with a similar loan-to-value 
        ratio in connection with a conventional mortgage (as 
        that term is used in section 305(a)(2) of the Federal 
        Home Loan Mortgage Corporation Act (12 U.S.C. 
        1454(a)(2)) or section 302(b)(2) of the Federal 
        National Mortgage Association Charter Act (12 U.S.C. 
        1717(b)(2)), as applicable), assuming prevailing 
        interest rates; and (ii) a statement regarding when the 
        mortgagor's requirement to pay the mortgage insurance 
        premiums for a mortgage insured under this section 
        would terminate or a statement that the requirement 
        will terminate only if the mortgage is refinanced, paid 
        off, or otherwise terminated.]

           *       *       *       *       *       *       *

          [(10) Calculation of Downpayment.--
                  [(A) In general.--Notwithstanding any other 
                provision of this subsection, with respect to a 
                mortgage executed for insurance in fiscal years 
                1998, 1999, and 2000, involving a principal 
                obligation not in excess of the sum of--
                          [(i) the amount of the mortgage 
                        insurance premium paid at the time the 
                        mortgage is insured; and
                          [(ii)(I) in the case of a mortgage 
                        for a property with an appraised value 
                        equal to or less than $50,000, 98.75 
                        percent of the appraised value of the 
                        property;
                          [(II) in the case of a mortgage for a 
                        property with an appraised value in 
                        excess of $50,000 but not in excess of 
                        $125,000, 97.65 percent of the 
                        appraised value of the property;
                          [(III) in the case of a mortgage for 
                        a property with an appraised value in 
                        excess of $125,000, 97.15 percent of 
                        the appraised value of the property; or
                          [(IV) notwithstanding subclauses (II) 
                        and (III), in the case of a mortgage 
                        for a property with an appraised value 
                        in excess of $50,000 that is located in 
                        an area of the State for which the 
                        average closing cost exceeds 2.10 
                        percent of the average, for the State, 
                        of the sale price of properties located 
                        in the State for which mortgages have 
                        been executed, 97.75 percent of the 
                        appraised value of the property.
                  [(B) Average closing cost.--For purposes of 
                this paragraph, the term ``average closing 
                cost'' means, with respect to a State, the 
                average, for mortgages executed for properties 
                that are located within the State, of the total 
                amounts (as determined by the Secretary) of 
                initial service charges, appraisal, inspection, 
                and other fees (as the Secretary shall approve) 
                that are paid in connection with such 
                mortgages.]
          (10) Reduced downpayment requirements for teachers 
        and uniformed municipal employees.--
                  (A) In general.--Notwithstanding paragraph 
                (2), in the case of a mortgage described in 
                subparagraph (B)--
                          (i) the mortgage shall involve a 
                        principal obligation in an amount that 
                        does not exceed the sum of 99 percent 
                        of the appraised value of the property 
                        and the total amount of initial service 
                        charges, appraisal, inspection, and 
                        other fees (as the Secretary shall 
                        approve) paid in connection with the 
                        mortgage;
                          (ii) no other provision of this 
                        subsection limiting the principal 
                        obligation of the mortgage based upon a 
                        percentage of the appraised value of 
                        the property subject to the mortgage 
                        shall apply; and
                          (iii) the matter in paragraph (9) 
                        that precedes the first proviso shall 
                        not apply and the mortgage shall be 
                        executed by a mortgagor who shall have 
                        paid on account of the property at 
                        least 1 percent of the cost of 
                        acquisition (as determined by the 
                        Secretary) in cash or its equivalent.
                  (B) Mortgages covered.--A mortgage described 
                in this subparagraph is a mortgage--
                          (i) under which the mortgagor is an 
                        individual who--
                                  (I) is employed on a full-
                                time basis as (aa) a teacher or 
                                administrator in a public or 
                                private school that provides 
                                elementary or secondary 
                                education, as determined under 
                                State law, except that 
                                secondary education shall not 
                                include any education beyond 
                                grade 12, or (bb) a public 
                                safety officer (as such term is 
                                defined in section 1204 of the 
                                Omnibus Crime Control and Safe 
                                Streets Act of 1968 (42 U.S.C. 
                                3796b), except that such term 
                                shall not include any officer 
                                serving a public agency of the 
                                Federal Government); and
                                  (II) has not, during the 12-
                                month period ending upon the 
                                insurance of the mortgage, had 
                                any present ownership interest 
                                in a principal residence 
                                located in the jurisdiction 
                                described in clause (ii); and
                          (ii) made for a property that is 
                        located within the jurisdiction of--
                                  (I) in the case of a mortgage 
                                of a mortgagor described in 
                                clause (i)(I)(aa), the local 
                                educational agency (as such 
                                term is defined in section 
                                14101 of the Elementary and 
                                Secondary Education Act of 1965 
                                (20 U.S.C. 8801)) for the 
                                school in which the mortgagor 
                                is employed (or, in the case of 
                                a mortgagor employed in a 
                                private school, the local 
                                educational agency having 
                                jurisdiction for the area in 
                                which the private school is 
                                located); or
                                  (II) in the case of a 
                                mortgage of a mortgagor 
                                described in clause (i)(I)(bb), 
                                the jurisdiction served by the 
                                public law enforcement agency, 
                                firefighting agency, or rescue 
                                or ambulance agency that 
                                employs the mortgagor.
    (c)(1)  * * *
    (2) [Notwithstanding] Except as provided in paragraph (3) 
and notwithstanding any other provision of this section, each 
mortgage secured by a 1- to 4-family dwelling and executed on 
or after October 1, 1994, that is an obligation of the Mutual 
Mortgage Insurance Fund or of the General Insurance Fund 
pursuant to subsection (v), shall be subject to the following 
requirements:
          (A)  * * *

           *       *       *       *       *       *       *

  (3) Deferral and reduction of up-front premium.--In the case 
of any mortgage described in subsection (b)(10)(B):
          (A) Paragraph (2)(A) of this subsection (relating to 
        collection of up-front premium payments) shall not 
        apply.
          (B) If, at any time during the 5-year period 
        beginning on the date of the insurance of the mortgage, 
        the mortgagor ceases to be employed as described in 
        subsection (b)(10)(B)(i)(I) or pays the principal 
        obligation of the mortgage in full, the Secretary shall 
        at such time collect a single premium payment in an 
        amount equal to the amount of the single premium 
        payment that, but for this paragraph, would have been 
        required under paragraph (2)(A) of this subsection with 
        respect to the mortgage, as reduced by 20 percent of 
        such amount for each successive 12-month period 
        completed during such 5-year period before such 
        cessation or prepayment occurs.

           *       *       *       *       *       *       *

    (f) Disclosure of Other Mortgage Products.--In conjunction 
with any loan insured under this section, an original lender 
shall provide to each prospective borrower a disclosure notice 
thatprovides a one page analysis of mortgage products offered 
by that lender and for which the borrower would qualify. This notice 
shall include: (i) a generic analysis comparing the note rate (and 
associated interest payments), insurance premiums, and other costs and 
fees that would be due over the life of the loan for a loan insured by 
the Secretary under this subsection with the note rates, insurance 
premiums (if applicable), and other costs and fees that would be 
expected to be due if the mortgagor obtained instead other mortgage 
products offered by the lender and for which the borrower would qualify 
with a similar loan-to-value ratio in connection with a conventional 
mortgage (as that term is used in section 305(a)(2) of the Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) or section 
302(b)(2) of the Federal National Mortgage Association Charter Act (12 
U.S.C. 1717(b)(2)), as applicable), assuming prevailing interest rates; 
and (ii) a statement regarding when the mortgagor's requirement to pay 
the mortgage insurance premiums for a mortgage insured under this 
section would terminate or a statement that the requirement will 
terminate only if the mortgage is refinanced, paid off, or otherwise 
terminated.

           *       *       *       *       *       *       *

    (k)(1)  * * *

           *       *       *       *       *       *       *

  (7) Prevention of fraud.--To prevent fraud under the program 
for loan insurance authorized under this subsection, the 
Secretary shall, by regulation, take the following actions:
          (A) Prohibition of identity of interest.--The 
        Secretary shall prohibit any identity-of-interest, as 
        such term is defined by the Secretary, between any of 
        the following parties involved in a loan insured under 
        this subsection: the borrower (including, in the case 
        of a borrower that is a nonprofit organization, any 
        member of the board of directors or the staff of the 
        organization), the lender, any consultant, any real 
        estate agent, any property inspector, and any 
        appraiser. Nothing in this subparagraph may be 
        construed to prohibit or restrict, or authorize the 
        Secretary to prohibit or restrict, the functioning of a 
        affiliated business arrangement that complies with the 
        requirements under section 8(c)(4) of the Real Estate 
        Settlement Procedures Act of 1974 (12 U.S.C. 
        2607(c)(4)).
          (B) Nonprofit participation.--The Secretary shall 
        establish minimum standards for a nonprofit 
        organization to participate in the program, which shall 
        include--
                  (i) requiring such an organization to 
                disclose to the Secretary its taxpayer 
                identification number and evidence sufficient 
                to indicate that the organization is an 
                organization described in section 501(c) of the 
                Internal Revenue Code of 1986 that is exempt 
                from taxation under subtitle A of such Code;
                  (ii) requiring that the board of directors of 
                such an organization be comprised only of 
                individuals who do not receive any compensation 
                or other thing of value by reason of their 
                service on the board and who have no personal 
                financial interest in the rehabilitation 
                project of the organization that is financed 
                with the loan insured under this subsection;
                  (iii) requiring such an organization to 
                submit to the Secretary financial statements of 
                the organization for the most recent 2 years, 
                which have been prepared by a party that is 
                unaffiliated with the organization and is 
                qualified to prepare financial statements;
                  (iv) limiting to 10 the number of loans that 
                are insured under this subsection, made to any 
                single such organization, and, at any one time, 
                have an outstanding balance of principal or 
                interest, except that the Secretary may 
                increase such numerical limitation on a case-
                by-case basis for good cause shown; and
                  (v) requiring such an organization to have 
                been certified by the Secretary as meeting the 
                requirements under this subsection and 
                otherwise eligible to participate in the 
                program not more than 2 years before obtaining 
                a loan insured under this section.
          (C) Completion of work.--The Secretary shall prohibit 
        any lender making a loan insured under this subsection 
        from disbursing the final payment of loan proceeds 
        unless the lender has received affirmation, from the 
        borrower under the loan, both in writing and pursuant 
        to an interview in person or over the telephone, that 
        the rehabilitation activities financed by the loan have 
        been satisfactorily completed.
          (D) Consultant standards.--The Secretary shall 
        require that any consultant, as such term is defined by 
        the Secretary, who is involved in a home inspection, 
        site visit, or preparation of bids with respect to any 
        loan insured under this section shall meet such 
        standards established by the Secretary to ensure 
        accurate inspections and preparation of bids.
          (E) Contractor qualification.--The Secretary shall 
        require, in the case of any loan that is insured under 
        this subsection and involves rehabilitation with a cost 
        of $25,000 or more, that the contractor or other person 
        performing or supervising the rehabilitation activities 
        financed by the loan shall--
                  (i) be certified by a nationally recognized 
                organization as meeting industry standards for 
                quality of workmanship, training, and 
                continuing education, including financial 
                management;
                  (ii) be licensed to conduct such activities 
                by the State or unit of general local 
                government in which the rehabilitation 
                activities are being completed; or
                  (iii) be bonded or provide such equivalent 
                protection, as the Secretary may require.

           *       *       *       *       *       *       *

                          payment of insurance

  Sec. 204. (a)  * * *

           *       *       *       *       *       *       *

  (h) Disposition of Assets in Revitalization Areas.--
          (1)  * * *

           *       *       *       *       *       *       *

          (4) Preference for sale to preferred purchasers.--The 
        Secretary shall provide a preference, among prospective 
        purchasers of eligible assets, for sale of such assets 
        to any purchaser who--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (B) in making a purchase under the program 
                under this subsection--
                          (i)  * * *
                          (ii) purchases all interests of the 
                        Secretary in all assets of the 
                        Secretary that, at any time during the 
                        period which shall be set forth in the 
                        sale agreement required under paragraph 
                        [(7)] (8)--

           *       *       *       *       *       *       *

          (5) Agreements Required for Purchase.--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (B) Non-preferred purchasers.--Under the 
                program under this subsection, the Secretary 
                may sell an eligible asset to a purchaser who 
                is not a preferred purchaser only pursuant to a 
                binding agreement by the purchaser that 
                complies with the following requirements:
                          (i) The purchaser has agreed to meet 
                        specific performance goals established 
                        by the Secretary for home ownership of 
                        the asset properties for the eligible 
                        assets purchased by the purchaser, 
                        except that the Secretary may, by 
                        including a provision in the sale 
                        agreement required under paragraph 
                        [(7)] (8), provide for a lower rate of 
                        home ownership in sales involving 
                        exceptional circumstances.

           *       *       *       *       *       *       *

          (6) Discount for preferred purchasers.--
                  (A) In general.--For the purpose of providing 
                a public purpose discount for the bulk sales of 
                eligible assets made under the program under 
                this subsection by preferred purchasers, each 
                eligible asset sold through the program under 
                this subsection to a preferred purchaser shall 
                be sold at a price that is discounted from the 
                value of the asset, as based on the appraised 
                value of the asset property (as such term is 
                defined in paragraph [(8)] (9)).

           *       *       *       *       *       *       *

          (7) 50 percent discount for teachers purchasing 
        properties that are eligible assets.--
                  (A) Discount.--A property that is an eligible 
                asset and is sold, during fiscal years 2000 
                through 2004, to a teacher for use in 
                accordance with subparagraph (B) shall be sold 
                at a price that is equal to 50 percent of the 
                appraised value of the eligible property (as 
                determined in accordance with paragraph 
                (6)(B)). In the case of a property eligible for 
                both a discount under this paragraph and a 
                discount under paragraph (6), the discount 
                under paragraph (6) shall not apply.
                  (B) Primary residence.--An eligible property 
                sold pursuant to a discount under this 
                paragraph shall be used, for not less than the 
                3-year period beginning upon such sale, as the 
                primary residence of a teacher.
                  (C) Sale methods.--The Secretary may sell an 
                eligible property pursuant to a discount under 
                this paragraph--
                          (i) to a unit of general local 
                        government or nonprofit organization 
                        (pursuant to paragraph (4) or 
                        otherwise), for resale or transfer to a 
                        teacher; or
                          (ii) directly to a purchaser who is a 
                        teacher.
                  (D) Resale.--In the case of any purchase by a 
                unit of general local government or nonprofit 
                organization of an eligible property sold at a 
                discounted price under this paragraph, the sale 
                agreement under paragraph (8) shall--
                          (i) require the purchasing unit of 
                        general local government or nonprofit 
                        organization to provide the full 
                        benefit of the discount to the teacher 
                        obtaining the property; and
                          (ii) in the case of a purchase 
                        involving multiple eligible assets, any 
                        of which is such an eligible property, 
                        designate the specific eligible 
                        property or properties to be subject to 
                        the requirements of subparagraph (B).
                  (E) Mortgage downpayment assistance.--If a 
                teacher purchases an eligible property pursuant 
                to a discounted sale price under this paragraph 
                and finances such purchase through a mortgage 
                insured under this title, notwithstanding any 
                provision of section 203 the downpayment on 
                such mortgage shall be $100.
                  (F) Prevention of undue profit.--The 
                Secretary shall issue regulations to prevent 
                undue profit from the resale of eligible 
                properties in violation of the requirement 
                under subparagraph (B).
                  (G) Awareness program.--From funds made 
                available for salaries and expenses for the 
                Office of Policy Support of the Department of 
                Housing and Urban Development, each field 
                office of the Department shall make available 
                to elementary schools and secondary schools 
                within the jurisdiction of the field office and 
                to the public--
                          (i) a list of eligible properties 
                        located within the jurisdiction of the 
                        field office that are available for 
                        purchase by teachers under this 
                        paragraph; and
                          (ii) other information designed to 
                        make such teachers and the public aware 
                        of the discount and downpayment 
                        assistance available under this 
                        paragraph.
                  (H) Definitions.--For the purposes of this 
                paragraph, the following definitions shall 
                apply:
                          ``(i) The terms `elementary school' 
                        and `secondary school' have the 
                        meanings given such terms in section 
                        14101 of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 8801), 
                        except that, for purposes ofthis 
paragraph, elementary education (as used in such section) shall include 
pre-Kindergarten education.
                          ``(ii) The term `eligible property' 
                        means an eligible asset described in 
                        paragraph (2)(A) of this subsection.
                          ``(iii) The term `teacher' means an 
                        individual who is employed on a full-
                        time basis, in an elementary or 
                        secondary school, as a State-certified 
                        classroom teacher or administrator.''.
          [(7)] (8) Sale agreement.--The Secretary may sell an 
        eligible asset under this subsection only pursuant to a 
        sale agreement entered into under this paragraph with 
        the purchaser, which shall include the following 
        provisions:
                  (A)  * * *

           *       *       *       *       *       *       *

          [(8)] (9) Definitions.--For purposes of this 
        subsection, the following definitions shall apply:
                  (A)  * * *

           *       *       *       *       *       *       *

          [(9)] (10) Secretary's discretion.--The Secretary 
        shall have the authority to implement and administer 
        the program under this subsection in such manner as the 
        Secretary may determine. The Secretary may, in the sole 
        discretion of the Secretary, enter into contracts to 
        provide for the proper administration of the program 
        with such public or nonprofit entities as the Secretary 
        determines are qualified.
          [(10)] (11) Regulations.--The Secretary shall issue 
        regulations to implement the program under this 
        subsection through rulemaking in accordance with the 
        procedures established under section 553 of title 5, 
        United States Code, regarding substantive rules. Such 
        regulations shall take effect not later than the 
        expiration of the 2-year period beginning on the date 
        of the enactment of the Departments of Veterans Affairs 
        and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 1999.

           *       *       *       *       *       *       *

                graduated payment and indexed mortgages

    Sec. 245. (a) The Secretary may insure under any provision 
of this title mortgages and loans with provisions of varying 
rates of amortization corresponding to anticipated variations 
in family income or with monthly payments and outstanding 
balances adjusted by a percentage change in a selected price 
index to the extent he determines such mortgages or loans (1) 
have promise for expanding housing opportunities or meet 
special needs, (2) can be developed to include any safeguards 
for mortgagors or purchasers that may be necessary to offset 
special risks of such mortgages, and (3) have a potential for 
acceptance in the private market. Notwithstanding any other 
provision of this title, except as provided in subsections (b) 
and (c) of this section, the principal obligation (including 
all interest to be deferred and added to principal) of a 
mortgage insured pursuant to this section may not exceed 97 per 
centum of the appraised value of the property covered by the 
mortgage as of the date the mortgage is accepted for 
insurance[, or if the mortgagor is a veteran and the mortgage 
is to be insured in accordance with the provisions of section 
203 of this title, such higher percentage of appraised value as 
is provided for purposes of determining the maximum mortgage 
amount eligible for insurance under section 203(b)(2) in the 
case of veterans].
    (b) Notwithstanding the provisions of subsection (a), the 
Secretary may insure under any provision of this title a 
mortgage or loan which meets the requirements of the first 
sentence of subsection (a) and which has provisions for varying 
rates of amortization if the Secretary determines--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) the principal obligation of the mortgage or loan 
        thereafter (including all interest to be deferred and 
        added to principal) will not at any time be scheduled 
        to exceed 97 per centum[, or, if the mortgagor is a 
        veteran, such higher percentage as is provided under 
        section 203(b)(2) for veterans], of the projected value 
        of the property; and

           *       *       *       *       *       *       *

                        [reinsurance contracts]

                       risk-sharing demonstration

    Sec. 249. (a) The purpose of this section is to authorize a 
demonstration mortgage [reinsurance] risk-sharing program 
designed to test the feasibility of entering into [reinsurance] 
risk-sharing contracts with [private mortgage insurers] insured 
community development financial institutions in order to reduce 
Government risk and administrative costs, and to speed mortgage 
processing. The Secretary shall limit the demonstration under 
this section to not more than [two] 4 administrative regions of 
the Department of Housing and Urban Development, and shall 
assure that the program is in the financial interest of the 
Government and will not result in loss of employment by any 
employees of the Department of Housing and Urban Development 
before [March 15, 1988] the expiration of the 5-year period 
beginning on the date of the enactment of the American 
Homeownership and Economic Opportunity Act of 2000. The 
aggregate number of mortgages insured under this section in any 
administrative region of the Department of Housing and Urban 
Development in any fiscal year may not exceed 10 percent of the 
aggregate number of mortgages and loans insured by the 
Secretary under this title in such region during the preceding 
fiscal year.
    (b) Notwithstanding any other provision of this Act 
inconsistent with this section, the Secretary is authorized to 
provide mortgage insurance with respect to one- to four-family 
dwellings under sections 203(b), 234, and 245 through 
[reinsurance] risk-sharing contracts with [private mortgage 
insurance companies which have been determined to be qualified 
insurers under section 302(b)(2)(C)] insured community 
development financial institutions. Such contracts shall 
require [private mortgage insurance companies] insured 
community development financial institutions to--
          [(1) assume a percentage of loss on any mortgage 
        insured pursuant to section 203(b), 234, or 245 
        covering a one- to four-family dwelling, which 
        percentage of loss shall be set forth in the 
        reinsurance contract; and]
          (1) assume the first loss on any mortgage insured 
        pursuant to section 203(b), 234, or 245 that covers a 
        one- to four-family dwelling and is included in the 
        program under this section, up to the percentage of 
        loss that is set forth in the risk-sharing contract;
          (2) [carry out (under appropriate delegation) such] 
        delegate underwriting, credit approval, appraisal, 
        inspection, commitment, claims processing, property 
        disposition, or other [function] functions as the 
        Secretary pursuant to regulations, shall approve as 
        consistent with the purposes of this section.
    (c) Any contract [of reinsurance] for risk-sharing under 
this section shall contain such provisions relating to the 
sharing of premiums on a sound actuarial basis, establishment 
of [insurance reserves] loss reserves, manner of calculating 
claims on [such insurance] such reserves, conditions with 
respect to foreclosure, handling and disposition of property 
prior to claim or settlement, right of assignees, and other 
similar matters as the Secretary may prescribe pursuant to 
regulations. Pursuant to a contract under this section, a 
[private mortgage insurance company] insured community 
development financial institution shall endorse loans for 
insurance and take such other actions on behalf of the 
Secretary and in the Secretary's name as the Secretary may 
authorize.
    (d) The Secretary shall require any [private mortgage 
insurance company] insured community development financial 
institution participating in the program under this section to 
provide [reinsurance] risk-sharing for those mortgages offered 
by the Secretary for inclusion in the program.
  (e) Insured Community Development Financial Institutions.--
For purposes of this section, the term ``insured community 
development financial institution'' means a community 
development financial institution, as such term is defined in 
section 103 of Reigle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4702) that is an insured 
depository institution (as such term is defined in section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 1813)) or an 
insured credit union (as such term is defined in section 101 of 
the Federal Credit Union Act (12 U.S.C. 1752)).

           *       *       *       *       *       *       *

                adjustable rate single family mortgages

    Sec. 251. (a) In General.--The Secretary may insure under 
any provision of this title a mortgage involving property upon 
which there is located a dwelling designed principally for 
occupancy by one to four families, where the mortgage provides 
for periodic adjustments by the mortgagee in the effective rate 
of interest charged. Such interest rate adjustments may be 
accomplished through adjustments in the monthly payment amount, 
the outstanding principal balance, or the mortgage term, or a 
combination of these factors, except that in no case may any 
extension of a mortgage term result in a total term in excess 
of 40 years. Adjustments in the effective rate of interest 
shall correspond to a specified national interest rate index 
approved in regulations by the Secretary, information on which 
is readily accessible to the mortgagors from generally 
available published sources. Adjustments in the effective rate 
of interest shall (1) be made on an annual basis; (2) be 
limited, with respect to any single interest rate increase, to 
no more than 1 percent on the outstanding loan balance; and (3) 
be limited to a maximum increase of 5 percentage points above 
the initial contract interest rate over the term of the 
mortgage.
    [(b) The Secretary shall issue regulations requiring that 
the mortgagee make available to the mortgagor, at the time of 
loan application, a written explanation of the features of the 
adjustable rate mortgage, including a hypothetical payment 
schedule that displays the maximum potential increases in 
monthly payments to the mortgagor over the first 5 years of the 
mortgage term.]
  (b) Disclosure.--In the case of any loan application for a 
mortgage to be insured under any provision of this section, the 
Secretary shall require that the prospective mortgagee for the 
mortgage shall, at the time of loan application, make available 
to the prospective mortgagor a written explanation of the 
features of an adjustable rate mortgage consistent with the 
disclosure requirements applicable to variable rate mortgages 
secured by a principal dwelling under the Truth in Lending Act 
(15 U.S.C. 1601 et seq.).
    (c) Limitation on Insurance Authority.--The aggregate 
number of mortgages and loans insured under this section in any 
fiscal year may not exceed 30 percent of the aggregate number 
of mortgages and loans insured by the Secretary under this 
title during the preceding fiscal year.
  (d) Hybrid ARMs.--The Secretary may insure under this 
subsection a mortgage that--
          (1) has an effective rate of interest that shall be--
                  (A) fixed for a period of not less than the 
                first 3 years of the mortgage term;
                  (B) initially adjusted by the mortgagee upon 
                the expiration of such period and annually 
                thereafter; and
                  (C) in the case of the initial interest rate 
                adjustment, shall be subject to the limitation 
                under clause (2) of the last sentence of 
                subsection (a) (relating to prohibiting annual 
                increases of more than 1 percent) only if the 
                interest rate remains fixed for 5 or fewer 
                years; and
          (2) otherwise meets the requirements for insurance 
        under subsection (a) that are not inconsistent with the 
        requirements under paragraph (1) of this subsection.

           *       *       *       *       *       *       *

  insurance of home equity conversion mortgages for elderly homeowners

    Sec. 255. (a)  * * *

           *       *       *       *       *       *       *

  (b) Definitions.--For purposes of this section:
          (1)  * * *
          (2) The terms [``mortgage'',] ``mortgagee'', 
        ``mortgagor'', and ``State'' have the meanings given 
        such terms in section 201.

           *       *       *       *       *       *       *

          (4) Mortgage.--The term ``mortgage'' means a first 
        mortgage or first lien on real estate, in fee simple, 
        on all stock allocated to a dwelling in a residential 
        cooperative housing corporation, or on a leasehold--
                  (A) under a lease for not less than 99 years 
                that is renewable; or
                  (B) under a lease having a period of not less 
                than 10 years to run beyond the maturity date 
                of the mortgage.
          (5) First mortgage.--The term ``first mortgage'' 
        means such classes of first liens as are commonly given 
        to secure advances on, or the unpaid purchase price of, 
        real estate or all stock allocated to a dwelling unit 
        in a residential cooperative housing corporation, under 
        the laws of the State in which the real estate or 
        dwelling unit is located, together with the credit 
        instruments, if any, secured thereby.

           *       *       *       *       *       *       *

  (k) Insurance Authority for Refinancings.--
          (1) In general.--The Secretary may, upon application 
        by a mortgagee, insure under this subsection any 
        mortgage given to refinance an existing home equity 
        conversion mortgage insured under this section.
          (2) Anti-churning disclosure.--The Secretary shall, 
        by regulation, require that the mortgagee of a mortgage 
        insured under this subsection, provide to the 
        mortgagor, within an appropriate time period and in a 
        manner established in such regulations, a good faith 
        estimate of: (A) the total cost of the refinancing; and 
        (B) the increase in the mortgagor's principal limit as 
        measured by the estimated initial principal limit on 
        the mortgage to be insured under this subsection less 
        the current principal limit on the home equity 
        conversion mortgage that is being refinanced and 
        insured under this subsection.
          (3) Waiver of counseling requirement.--The mortgagor 
        under a mortgage insured under this subsection may 
        waive the applicability, with respect to such mortgage, 
        of the requirements under subsection (d)(2)(B) 
        (relating to third party counseling), but only if--
                  (A) the mortgagor has received the disclosure 
                required under paragraph (2);
                  (B) the increase in the principal limit 
                described in paragraph (2) exceeds the amount 
                of the total cost of refinancing (as described 
                in such paragraph) by an amount to be 
                determined by the Secretary; and
                  (C) the time between the closing of the 
                original home equity conversion mortgage that 
                is refinanced through the mortgage insured 
                under this subsection and the application for a 
                refinancing mortgage insured under this 
                subsection does not exceed 5 years.
          (4) Credit for premiums paid.--Notwithstanding 
        section 203(c)(2)(A), the Secretary may reduce the 
        amount of the single premium payment otherwise 
        collected under such section at the time of the 
        insurance of a mortgage refinanced and insured under 
        this subsection. The amount of the single premium for 
        mortgages refinanced under this subsection shall be 
        determined by the Secretary based on the actuarial 
        study required under paragraph (5).
          (5) Actuarial study.--Not later than 180 days after 
        the date of the enactment of the American Homeownership 
        and Economic Opportunity Act of 2000, the Secretary 
        shall conduct an actuarial analysis to determine the 
        adequacy of the insurance premiums collected under the 
        program under this subsection with respect to--
                  (A) a reduction in the single premium payment 
                collected at the time of the insurance of a 
                mortgage refinanced and insured under this 
                subsection;
                  (B) the establishment of a single national 
                limit on the benefits of insurance under 
                subsection (g) (relating to limitation on 
                insurance authority); and
                  (C) the combined effect of reduced insurance 
                premiums and a single national limitation on 
                insurance authority.
          (6) Fees.--The Secretary may establish a limit on the 
        origination fee that may be charged to a mortgagor 
        under a mortgage insured under this subsection, except 
        that such limitation shall provide that the origination 
        fee may be fully financed with the mortgage and shall 
        include any fees paid to correspondent mortgagees 
        approved by the Secretary. The Secretary shall prohibit 
        the charging of any broker fees in connection with 
        mortgages insured under this subsection.
  (l) Waiver of Up-Front Premiums.--
          (1) Mortgages to fund long-term care insurance.--In 
        the case of any mortgage insured under this section 
        under which the total amount (except as provided in 
        paragraph (3)) of all future payments described in 
        subsection (b)(3) will be used only for costs of a 
        qualified long-term care insurance contract (as such 
        term is defined in section 7702B of the Internal 
        Revenue Code of 1986 (26 U.S.C. 7702B)) that covers the 
        mortgagor or members of the household residing in the 
        property that is subject to the mortgage, 
        notwithstanding section 203(c)(2), the Secretary shall 
        not charge or collect the single premium payment 
        otherwise required under subparagraph (A) of such 
        section to be paid at the time of insurance.
          (2) Mortgages to fund health care costs.--In the case 
        of any mortgage insured under this section under which 
        the future payments described in subsection (b)(3) will 
        be used only for costs for health care services (as 
        such term is defined by the Secretary) for the 
        mortgagor or members of the household residing in the 
        property that is subject to the mortgage and comply 
        with limitations on such payments, as shall be 
        established by the Secretary and based upon the 
        purposes of this subsection and the accumulated equity 
        of the mortgagor in the property, notwithstanding 
        section 203(c)(2), the Secretary shall not charge or 
        collect the single premium payment otherwise required 
        under subparagraph (A) of such section to be paid at 
        the time of insurance.
          (3) Authority to refinance existing mortgage and 
        finance closing costs.--A mortgage described in 
        paragraphs (1) or (2) may provide financing of amounts 
        that are used to satisfy outstanding mortgage 
        obligations (in accordance with such limitations as the 
        Secretary shall prescribe) any amounts used for initial 
        service charges, appraisal, inspection, and other fees 
        (as approved by the Secretary) in connection with such 
        mortgage, and the amount of future payments described 
        in subsection (b)(3) under the mortgage shall be 
        reduced accordingly.
  [(k)] (m) Funding for Counseling and Consumer Education and 
Outreach.--Of any amounts made available for any of fiscal 
years 2000 through 2003 for housing counseling under section 
106 of the Housing and Urban Development Act of 1968, up to a 
total of $1,000,000 shall be available to the Secretary in each 
such fiscal year, in such amounts as the Secretary determines 
appropriate, for the following purposes in connection with home 
equity conversion mortgages insured under this section:
          (1) Counseling.--For housing counseling authorized by 
        section 106 of the Housing and Urban Development Act of 
        1968.
          (2) Consumer education.--For transfer to the 
        departmental salaries and expenses account for consumer 
        education and outreach activities.

           *       *       *       *       *       *       *

                              ----------                              

           SECTION 8 OF THE UNITED STATES HOUSING ACT OF 1937

                    lower income housing assistance

  Sec. 8. (a)  * * *

           *       *       *       *       *       *       *

  (y) Homeownership Option.--
          (1)  * * *

           *       *       *       *       *       *       *

          (7) Downpayment assistance.--
                  (A) Authority.--A public housing agency may, 
                in lieu of providing monthly assistance 
                payments under this subsection on behalf of a 
                family eligible for such assistance and at the 
                discretion of the public housing agency, 
                provide assistance for the family in the form 
                of a single grant to be used only as a 
                contribution toward the downpayment required in 
                connection with the purchase of a dwelling for 
                fiscal year 2000 and each fiscal year 
                thereafter to the extent provided in advance in 
                appropriations Acts.
                  (B) Amount.--The amount of a downpayment 
                grant on behalf of an assisted family may not 
                exceed the amount that is equal to the sum of 
                the assistance payments that would be made 
                during the first year of assistance on behalf 
                of the family, based upon the income of the 
                family at the time the grant is to be made.
          [(7)] (8) Definition of first-time homeowner.--For 
        purposes of this subsection, the term ``first-time 
        homeowner'' means--
                  (A) a family, no member of which has had a 
                present ownership interest in a principal 
                residence during the 3 years preceding the date 
                on which the family initially receives 
                assistance for homeownership under this 
                subsection; and
                  (B) any other family, as the Secretary may 
                prescribe.

           *       *       *       *       *       *       *

                              ----------                              

CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT

           *       *       *       *       *       *       *

SEC. 104. DEFINITIONS.

    As used in this title and in title II:
          (1)  * * *

           *       *       *       *       *       *       *

          (19) The term ``metropolitan city'' has the meaning 
        given the term in section 102(a)(4) of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 
        5302(a)(4)). The term ``city'' shall have the meaning 
        given such term in section 102(a)(5)(B) of such Act. A 
        town or township that is classified as a city by reason 
        of subclause (II) of section 102(a)(5)(A)(B)(iii) of 
        such Act shall be treated, notwithstanding section 
        102(d)(1) of such Act, as an entity separate from the 
        urban county in which it is located for purposes of 
        allocation of amounts under section 217 of this Act to 
        units of general local government from amounts made 
        available for any fiscal year beginning after the date 
        of the enactment of the American Homeownership and 
        Economic Opportunity Act of 2000.

           *       *       *       *       *       *       *

          [(23)] (22) The term ``to demonstrate to the 
        Secretary'' means to submit to the Secretary a written 
        assertion together with supporting evidence that, in 
        the determination of the Secretary, supports the 
        accuracy of the assertion.
          [(24)] (23) The term ``insular area'' means any of 
        the following: Guam, the Northern Mariana Islands, the 
        Virgin Islands, and American Samoa.

           *       *       *       *       *       *       *

          (26) The term ``limited equity cooperative'' means a 
        cooperative housing corporation which, in a manner 
        determined by the Secretary to be acceptable, restricts 
        income eligibility of purchasers of membership shares 
        of stock in the cooperative corporation or the initial 
        and resale price of such shares, or both, so that the 
        shares remain available and affordable to low-income 
        families.
          (27) The term ``mutual housing association'' means a 
        private entity that--
                  (A) is organized under State law;
                  (B) is described in section 501(c) of the 
                Internal Revenue Code of 1986 and exempt from 
                taxation under section 501(a) of such Code;
                  (C) owns, manages, and continuously develops 
                affordable housing by providing long-term 
                housing for low- and moderate-income families;
                  (D) provides that eligible families who 
                purchase membership interests in the 
                association shall have a right to residence in 
                a dwelling unit in the housing during the 
                period that they hold such membership interest; 
                and
                  (E) provides for the residents of such 
                housing to participate in the ongoing 
                management of the housing.
          (28) The term ``moderate income families'' means 
        families whose incomes do not exceed the median income 
        for the area, as determined by the Secretary with 
        adjustments for smaller and larger families, except 
        that the Secretary may establish income ceilings higher 
        or lower than the median income for the area on the 
        basis of the Secretary's findings that such variations 
        are necessary because of prevailing levels of 
        construction costs or fair market rents, or unusually 
        high or low family incomes.

           *       *       *       *       *       *       *

[SEC. 106. CERTIFICATION.

    [The Secretary shall, by regulation or otherwise, as deemed 
by the Secretary to be appropriate, require any application for 
housing assistance under title II of this Act, assistance under 
the Housing and Community Development Act of 1974, or 
assistance under the Stewart B. McKinney Homeless Assistance 
Act, to contain or be accompanied by a certification by an 
appropriate State or local public official that the proposed 
housing activities are consistent with the housing strategy of 
the jurisdiction to be served.]

SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY PLANNING AND 
                    DEVELOPMENT PROGRAMS.

  (a) Requirement.--The Secretary shall, by regulation, provide 
for jurisdictions to comply with the planning and application 
requirements under the covered programs under subsection (b) by 
submitting to the Secretary, for a program year, a single 
consolidated submission under this section that complies with 
the requirements for planning and application submissions under 
the laws relating to the covered programs and shall serve, for 
the jurisdiction, as the planning document and an application 
for funding under the covered programs.
  (b) Covered Programs.--The covered programs under this 
subsection are the following programs:
          (1) The HOME investment partnerships program under 
        title II of this Act (42 U.S.C. 12721 et seq.).
          (2) The community development block grant program 
        under title I of the Housing and Community Development 
        Act of 1974 (42 U.S.C. 5301 et seq.).
          (3) The economic development initiative program under 
        section 108(q) of the Housing and Community Development 
        Act of 1974 (42 U.S.C. 5308(q)).
          (4) The emergency shelter grants program under 
        subtitle B of title IV of the Stewart B. McKinney 
        Homeless Assistance Act (42 U.S.C. 11371 et seq.).
          (5) The housing opportunities for persons with AIDS 
        program under subtitle D of title VIII of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 
        12901 et seq.).
  (c) Program Year.--In establishing requirements for a 
consolidated submission under this section, the Secretary shall 
provide for a consolidated program year, which shall comply 
with the various application and review deadlines under the 
covered programs.
  (d) Adequacy of Existing Regulations.--The regulations of the 
Secretary relating to consolidated submissions for community 
planning and development programs, part 91 of title 24, Code of 
Federal Regulations, as in effect on March 1, 1999, shall be 
considered to be sufficient to comply with this section, except 
to the extent that the program referred to in paragraph (3) of 
subsection (b) is not covered by such regulations.
  (e) Consistency.--The Secretary shall, by regulation or 
otherwise, as deemed by the Secretary to be appropriate, 
require any application for housing assistance under title II 
of this Act, assistance under the Housing and Community 
Development Act of 1974, or assistance under the Stewart B. 
McKinney Homeless Assistance Act, to contain or be accompanied 
by a certification by an appropriate State or local public 
official that the proposed housing activities are consistent 
with the housing strategy of the jurisdiction to be served.

           *       *       *       *       *       *       *

TITLE II--INVESTMENT IN AFFORDABLE HOUSING

           *       *       *       *       *       *       *

SEC. 202. FINDINGS.

  The Congress finds that--
          (1)  * * *

           *       *       *       *       *       *       *

          (10) an increasing number of States and local 
        governments have been successful in producing cost-
        effective low-income and moderate-income housing by 
        working in partnership with the private sector, 
        including nonprofit community development corporations, 
        community action agencies, neighborhood housing 
        services corporations, trade unions, groups sponsored 
        by religious organizations, limited equity 
        cooperatives, mutual housing associations, and other 
        tenant organizations;

           *       *       *       *       *       *       *

[SEC. 205. AUTHORIZATION.

  [There are authorized to be appropriated to carry out this 
title $2,086,000,000 for fiscal year 1993, and $2,173,612,000 
for fiscal year 1994, of which--
          [(1) not more than $14,000,000 for fiscal year 1993, 
        and $25,000,000 for fiscal year 1994, shall be for 
        community housing partnership activities authorized 
        under section 233; and
          [(2) not more than $11,000,000 for fiscal year 1993, 
        and $22,000,000 for fiscal year 1994, shall be for 
        activities in support of State and local housing 
        strategies authorized under subtitle C.]

SEC. 205. AUTHORIZATION.

  (a) In General.--There is authorized to be appropriated to 
carry out this title $1,650,000,000 for fiscal year 2001 and 
such sums as may be necessary for each of fiscal years 2002, 
2003, 2004, and 2005, of which--
          (1) not more than $25,000,000 in each such fiscal 
        year shall be for community housing partnership 
        activities authorized under section 233; and
          (2) not more than $15,000,000 in each such fiscal 
        year shall be for activities in support of State and 
        local housing strategies authorized under subtitle C, 
        of which, in each of fiscal years 2001 and 2002, 
        $3,000,000 shall be for funding grants under section 
        246.
  (b) Prohibition of Set-Asides.--Except as provided in 
subsection (a) of this section and section 217(a)(3), amounts 
appropriated pursuant to subsection (a) of this section or 
otherwise to carry out this title shall be used only for 
formula-based grants allocated pursuant to section 217 and may 
not be otherwise used unless the provision of law providing for 
such other use specifically refers to this subsection and 
specifically states that such provision modifies or supersedes 
the provisions of this subsection.

           *       *       *       *       *       *       *

SEC. 212. ELIGIBLE USES OF INVESTMENT.

  (a)  * * *

           *       *       *       *       *       *       *

  (b) Investments.--Participating jurisdictions shall have 
discretion to invest funds made available under this subtitle 
as equity investments, interest-bearing loans or advances, 
noninterest-bearing loans or advances, interest subsidies, 
advances to provide reserves for loan pools or to provide 
partial loan guarantees, or other forms of assistance that the 
Secretary has determined to be consistent with the purposes of 
this title. Each participating jurisdiction shall have the 
right to establish the terms of assistance. Notwithstanding the 
preceding sentence, in the case of homeownership assistance for 
residences of owners described in section 215(b)(2)(B), funds 
made available under this subtitle may only be invested (A) to 
provide amounts for downpayments on mortgages, (B) to pay 
reasonable closing costs normally associated with the purchase 
of a residence, (C) to obtain pre- or post-purchase counseling 
relating to the financial and other obligations of 
homeownership, or (D) to subsidize mortgage interest rates.
  (c) Administrative Costs.--In each fiscal year, each 
participating jurisdiction may use not more than 10 percent of 
the funds made available under this subtitle to the 
jurisdiction for such year for any administrative and planning 
costs of the jurisdiction in carrying out this subtitle, 
including the costs of the salaries of persons engaged in 
administering and managing activities assisted with funds made 
available under this subtitle. A participating jurisdiction may 
use amounts made available under this subsection for a fiscal 
year for administrative and planning costs by amortizing the 
costs of administration and planning activities under this 
subtitle over the entire duration of such activities.

           *       *       *       *       *       *       *

SEC. 214. INCOME TARGETING.

    Each participating jurisdiction shall invest funds made 
available under this subtitle within each fiscal year so that--
          (1)  * * *

           *       *       *       *       *       *       *

          (2) with respect to homeownership assistance, 100 
        percent of such funds are invested with respect to 
        dwelling units that are occupied by households that 
        qualify as low-income families or families described in 
        section 215(b)(2)(B); and

           *       *       *       *       *       *       *

SEC. 215. QUALIFICATION AS AFFORDABLE HOUSING.

    (a) Rental Housing.--
          (1)  * * *

           *       *       *       *       *       *       *

          (6) Limited equity cooperatives and mutual housing 
        associations.--Housing that is owned by a limited 
        equity cooperative or a mutual housing association may 
        be considered by a participating jurisdiction to be 
        rental housing for purposes of this title to the extent 
        that ownership or membership in such a cooperative or 
        association, respectively, constitutes rental of a 
        dwelling under State or local laws.
          (7) Waiver of qualifying rent.--
                  (A) In general.--For the purpose of providing 
                affordable housing appropriate for families 
                described in subparagraph (B), the Secretary 
                may, upon the application of the project owner, 
                waive the applicability of subparagraph (A) of 
                paragraph (1) with respect to a dwelling unit 
                if--
                          (i) the unit is occupied by such a 
                        family, on whose behalf tenant-based 
                        assistance is provided under section 8 
                        of the United States Housing Act of 
                        1937 (42 U.S.C. 1437f);
                          (ii) the rent for the unit is not 
                        greater than the existing fair market 
                        rent for comparable units in the area, 
                        as established by the Secretary under 
                        section 8 of the United States Housing 
                        Act of 1937; and
                          (iii) the Secretary determines that 
                        the waiver, together with waivers under 
                        this paragraph for other dwelling units 
                        in the project, will result in the use 
                        of amounts described in clause (iii) in 
                        an effective manner that will improve 
                        the provision of affordable housing for 
                        such families.
                  (B) Eligible families.--A family described in 
                this subparagraph is a family that consists of 
                at least one elderly person (who is the head of 
                household) and one or more of such person's 
                grand children, great grandchildren, great 
                nieces, great nephews, or great great 
                grandchildren (as defined by the Secretary), 
                but does not include any parent of such 
                grandchildren, great grandchildren, great 
                nieces, great nephews, or great great 
                grandchildren. Such term includes any such 
                grandchildren, great grandchildren, great 
                nieces, great nephews, or great great 
                grandchildren who have been legally adopted by 
                such elderly person.
    (b) Homeownership.--Housing that is for homeownership shall 
qualify as affordable housing under this title only if the 
housing--
          (1)  * * *
          [(2) is the principal residence of an owner whose 
        family qualifies as a low-income family--
                  [(A) in the case of a contract to purchase 
                existing housing, at the time of purchase;
                  [(B) in the case of a lease-purchase 
                agreement for existing housing or for housing 
                to be constructed, at the time the agreement is 
                signed; or
                  [(C) in the case of a contract to purchase 
                housing to be constructed, at the time the 
                contract is signed;]
          (2) is the principal residence of an owner who--
                  (A) is a member of a family that qualifies as 
                a low-income family--
                          (i) in the case of a contract to 
                        purchase existing housing, at the time 
                        of purchase;
                          (ii) in the case of a lease-purchase 
                        agreement for existing housing or for 
                        housing to be constructed, at the time 
                        the agreement is signed; or
                          (iii) in the case of a contract to 
                        purchase housing to be constructed, at 
                        the time the contract is signed; or
                  (B)(i) is a uniformed employee (which shall 
                include policemen, firemen, and sanitation and 
                other maintenance workers) or a teacher who is 
                an employee, of the participating jurisdiction 
                (or an agency or school district serving such 
                jurisdiction) that is investing funds made 
                available under this subtitle to support 
                homeownership of the residence; and
                  (ii) is a member of a family whose income, at 
                the time referred to in clause (i), (ii), or 
                (iii) of subparagraph (A), as appropriate, and 
                as determined by the Secretary with adjustments 
                for smaller and larger families, does not 
                exceed 115 percent of the median income of the 
                area, except that, with respect only to such 
                areas that the Secretary determines have high 
                housing costs, taking into consideration median 
                house prices and median family incomes for the 
                area, such income limitation shall be 150 
                percent of the median income of the area, as 
                determined by the Secretary with adjustments 
                for smaller and larger families;

           *       *       *       *       *       *       *

          (4) if newly constructed, meets the energy efficiency 
        standards promulgated by the Secretary in accordance 
        with section 109 of this Act. Housing that is owned by 
        a limited equity cooperative or a mutual housing 
        association may be considered by a participating 
        jurisdiction to be housing for homeownership for 
        purposes of this title to the extent that ownership or 
        membership in such a cooperative or association, 
        respectively, constitutes homeownership under State or 
        local laws.
  (c) Loan Pools.--Notwithstanding subsections (a) and (b), 
housing financed using amounts invested as provided in section 
218(e)(2) shall qualify as affordable housing only if the 
housing complies with the following requirements:
          (1) In the case of housing that is for 
        homeownership--
                  (A) of the units financed with amounts so 
                invested--
                          (i) not less than 75 percent are 
                        principal residences of owners whose 
                        families qualify as low-income 
                        families--
                                  (I) in the case of a contract 
                                to purchase existing housing, 
                                at the time of purchase;
                                  (II) in the case of a lease-
                                purchase agreement for existing 
                                housing or for housing to be 
                                constructed, at the time the 
                                agreement is signed; or
                                  (III) in the case of a 
                                contract to purchase housing to 
                                be constructed, at the time the 
                                contract is signed;
                          (ii) all are principal residences of 
                        owners whose families qualify as 
                        moderate-income families--
                                  (I) in the case of a contract 
                                to purchase existing housing, 
                                at the time of purchase;
                                  (II) in the case of a lease-
                                purchase agreement for existing 
                                housing or for housing to be 
                                constructed, at the time the 
                                agreement is signed; or
                                  (III) in the case of a 
                                contract to purchase housing to 
                                be constructed, at the time the 
                                contract is signed; and
                          (iii) all comply with paragraphs (3) 
                        and (4) of subsection (b), except that 
                        paragraph (3) shall be applied for 
                        purposes of this clause by substituting 
                        ``subsection (c)(2)(B)'' and ``low- and 
                        moderate-income homebuyers'' for 
                        ``paragraph (2)'' and ``low-income 
                        homebuyers'', respectively; and
                  (B) units made available for purchase only by 
                families who qualify as low-income families 
                shall have an initial purchase price that 
                complies with the requirements of subsection 
                (b)(1).
          (2) In the case of housing that is for rental, the 
        housing--
                  (A) complies with subparagraphs (D) through 
                (F) of subsection (a)(1);
                  (B)(i) has not less than 75 percent of the 
                units occupied by households that qualify as 
                low-income families and is occupied only by 
                households that qualify as moderate-income 
                families; or
                  (ii) temporarily fails to comply with clause 
                (i) only because of increases in the incomes of 
                existing tenants and actions satisfactory to 
                the Secretary are being taken to ensure that 
                all vacancies in the housing are being filled 
                in accordance with clause (i) until such 
                noncompliance is corrected; and
                  (C) bears rents, in the case of units made 
                available for occupancy only by households that 
                qualify as low-income families, that comply 
                with the requirements of subsection (a)(1)(A).
        Paragraphs (4) and (5) of subsection (a) shall apply to 
        housing that is subject to this subsection.

           *       *       *       *       *       *       *

SEC. 218. HOME INVESTMENT TRUST FUNDS.

    (a)  * * *

           *       *       *       *       *       *       *

    [(e) Investment Within 15 Days.--The participating 
jurisdiction shall, not later than 15 days after funds are 
drawn from the jurisdiction's HOME Investment Trust Fund, 
invest such funds, together with any interest earned thereon, 
in the affordable housing for which the funds were withdrawn.]
  (e) Investment Within 15 Days.--
          (1) In general.--The participating jurisdiction 
        shall, not later than 15 days after funds are drawn 
        from the jurisdiction's HOME Investment Trust Fund, 
        invest such funds, together with any interest earned 
        thereon, in the affordable housing for which the funds 
        were withdrawn.
          (2) Loan pools.--In the case of a participating 
        jurisdiction that withdraws Trust Fund amounts for 
        investment in the form of an advance for reserves or 
        partial loan guarantees under a program providing such 
        credit enhancement for loans for affordable housing, 
        the amounts shall be considered to be invested for 
        purposes of paragraph (1) upon the completion of both 
        of the following actions:
                  (A) Control of the amounts is transferred to 
                the program.
                  (B) The jurisdiction and the entity operating 
                the program enter into a written agreement 
                that--
                          (i) provides that such funds may be 
                        used only in connection with such 
                        program;
                          (ii) defines the terms and conditions 
                        of the loan pool reserve or partial 
                        loan guarantees; and
                          (iii) provides that such entity shall 
                        ensure that amounts from non-Federal 
                        sources have been contributed, or are 
                        committed for contribution, to the pool 
                        available for loans for affordable 
                        housing that will be backed by such 
                        reserves or loan guarantees in an 
                        amount equal to 10 times the amount 
                        invested from Trust Fund amounts.

           *       *       *       *       *       *       *

    [(g) Expiration of Right To Draw Funds.--If any funds 
becoming available to a participating jurisdiction under this 
title are not placed under binding commitment to affordable 
housing within 24 months after the last day of the month in 
which such funds are deposited in the jurisdiction's HOME 
Investment Trust Fund, the jurisdiction's right to draw such 
funds from the HOME InvestmentTrust Fund shall expire. The 
Secretary shall reduce the line of credit in the participating 
jurisdiction's HOME Investment Trust Fund by the expiring amount and 
shall reallocate the funds by formula in accordance with section 
217(d).]
  (g) Expiration of Right To Draw Funds.--
          (1) In general.--If any funds becoming available to a 
        participating jurisdiction under this title are not 
        placed under binding commitment to affordable housing 
        within 24 months after the last day of the month in 
        which such funds are deposited in the jurisdiction's 
        HOME Investment Trust Fund, the jurisdiction's right to 
        draw such funds from the HOME Investment Trust Fund 
        shall expire. The Secretary shall reduce the line of 
        credit in the participating jurisdiction's HOME 
        Investment Trust Fund by the expiring amount and shall 
        reallocate the funds by formula in accordance with 
        section 217(d).
          (2) Loan pools.--In the case of a participating 
        jurisdiction that withdraws Trust Fund amounts for 
        investment in the manner provided under subsection 
        (e)(2), the amounts shall be considered to be placed 
        under binding commitment to affordable housing for 
        purposes of paragraph (1) of this subsection at the 
        time that the amounts are obligated for use under, and 
        are subject to, a written agreement described in 
        subsection (e)(2)(B).

           *       *       *       *       *       *       *

SEC. 227. LOAN GUARANTEES.

  (a) Authority.--The Secretary may, upon such terms and 
conditions as the Secretary may prescribe, guarantee and make 
commitments to guarantee, only to such extent or in such 
amounts as provided in appropriations Acts, the notes or other 
obligations issued by eligibleparticipating jurisdictions or by 
public agencies designated by and acting on behalf of eligible 
participating jurisdictions for purposes of financing (including credit 
enhancements and debt service reserves) the acquisition, new 
construction, reconstruction, or moderate or substantial rehabilitation 
of affordable housing (including real property acquisition, site 
improvement, conversion, and demolition), and other related expenses 
(including financing costs and relocation expenses of any displaced 
persons, families, businesses, or organizations). Housing funded under 
this section shall meet the requirements of this subtitle.
  (b) Requirements.--Notes or other obligations guaranteed 
under this section shall be in such form and denominations, 
have such maturities, and be subject to such conditions as may 
be prescribed by the Secretary. The Secretary may not deny a 
guarantee under this section on the basis of the proposed 
repayment period for the note or other obligation, unless the 
period is more than 20 years or the Secretary determines that 
the period otherwise causes the guarantee to constitute an 
unacceptable financial risk.
  (c) Limitation on Total Notes and Obligations.--The Secretary 
may not guarantee or make a commitment to guarantee any note or 
other obligation if the total outstanding notes or obligations 
guaranteed under this section on behalf of the participating 
jurisdiction issuing the note or obligation (excluding any 
amount defeased under a contract entered into under subsection 
(e)(1)) would thereby exceed an amount equal to 5 times the 
amount of the participating jurisdiction's latest allocation 
under section 217.
  (d) Use of Program Funds.--Notwithstanding any other 
provision of this subtitle, funds allocated to the 
participating jurisdiction under this subtitle (including 
program income derived therefrom) are authorized for use in the 
payment of principal and interest due on the notes or other 
obligations guaranteed pursuant to this section and the payment 
of such servicing, underwriting, or other issuance or 
collection charges as may be specified by the Secretary.
  (e) Security.--To assure the full repayment of notes or other 
obligations guaranteed under this section, and payment of the 
issuance or collection charges specified by the Secretary under 
subsection (d), and as a prior condition for receiving such 
guarantees, the Secretary shall require the participating 
jurisdiction (and its designated public agency issuer, if any) 
to--
          (1) enter into a contract, in a form acceptable to 
        the Secretary, for repayment of such notes or other 
        obligations and the other specified charges;
          (2) pledge as security for such repayment any 
        allocation for which the participating jurisdiction may 
        become eligible under this subtitle; and
          (3) furnish, at the discretion of the Secretary, such 
        other security as may be deemed appropriate by the 
        Secretary in making such guarantees, which may include 
        increments in local tax receipts generated by the 
        housing assisted under this section or disposition 
        proceeds from the sale of land or housing.
  (f) Repayment Authority.--The Secretary may, notwithstanding 
any other provision of this subtitle or any other Federal, 
State, or local law, apply allocations pledged pursuant to 
subsection (e) to any repayments due the United States as a 
result of such guarantees.
  (g) Full Faith and Credit.--The full faith and credit of the 
United States is pledged to the payment of all guarantees made 
under this section. Any such guarantee made by the Secretary 
shall be conclusive evidence of the eligibility of the notes or 
other obligations for such guarantee with respect to principal 
and interest, and the validity of any such guarantee so made 
shall be incontestable in the hands of a holder of the 
guaranteed obligations.
  (h) Tax Status.--With respect to any obligation guaranteed 
pursuant to this section, the guarantee and the obligation 
shall be designed in a manner such that the interest paid on 
such obligation shall be included in gross income for purposes 
of the Internal Revenue Code of 1986.
  (i) Monitoring.--The Secretary shall monitor the use of 
guarantees under this section by eligible participating 
jurisdictions. If the Secretary finds that 50 percent of the 
aggregate guarantee authority for any fiscal year has been 
committed, the Secretary may impose limitations on the amount 
of guarantees any 1 participating jurisdiction may receive 
during that fiscal year.
  (j) Guarantee of Trust Certificates.--
          (1) Authority.--The Secretary may, upon such terms 
        and conditions as the Secretary deems appropriate, 
        guarantee the timely payment of the principal of and 
        interest on such trust certificates or other 
        obligations as may--
                  (A) be offered by the Secretary or by any 
                other offeror approved for purposes of this 
                subsection by the Secretary; and
                  (B) be based on and backed by a trust or pool 
                composed of notes or other obligations 
                guaranteed or eligible for guarantee by the 
                Secretary under this section.
          (2) Full faith and credit.--To the same extent as 
        provided in subsection (g), the full faith and credit 
        of the United States is pledged to the payment of all 
        amounts which may be required to be paid under any 
        guarantee by the Secretary under this subsection.
          (3) Subrogation.--In the event the Secretary pays a 
        claim under a guarantee issued under this section, the 
        Secretary shall be subrogated fully to the rights 
        satisfied by such payment.
          (4) Other powers and rights.--No State or local law, 
        and no Federal law, shall preclude or limit the 
        exercise by the Secretary of--
                  (A) the power to contract with respect to 
                public offerings and other sales of notes, 
                trust certificates, and other obligations 
                guaranteed under this section, upon such terms 
                and conditions as the Secretary deems 
                appropriate;
                  (B) the right to enforce, by any means deemed 
                appropriate by the Secretary, any such 
                contract; and
                  (C) the Secretary's ownership rights, as 
                applicable, in notes, certificates or other 
                obligations guaranteed under this section, or 
                constituting the trust or pool against which 
                trust certificates or other obligations 
                guaranteed under this section are offered.
  (k) Aggregate Limitation.--The total amount of outstanding 
obligations guaranteed on a cumulative basis by the Secretary 
under this section shall not at any time exceed $2,000,000,000.

           *       *       *       *       *       *       *

SEC. 246. PILOT PROGRAM FOR DEVELOPING COMPREHENSIVE REGIONAL HOUSING 
                    AFFORDABILITY STRATEGIES.

  (a) Authority.--The Secretary may, using any amounts made 
available for grants under this section, make not more than 3 
grants for each of fiscal years 2001 and 2002 to consortia of 
units of general local government described in subsection (b) 
for costs of developing and implementing comprehensive housing 
affordability strategies on a regional basis.
  (b) Eligible Consortia.--A consortium of units of general 
local government described in this subsection is a consortium 
that--
          (1) is eligible under section 216(2) to be deemed a 
        unit of general local government for purposes of this 
        title; and
          (2) consists of multiple units of general local 
        government; and
          (3) contains only units of general local government 
        that are geographically contiguous.
  (c) Multi-State Requirement.--In each fiscal year in which 
grants are made under this section, not less than one of the 
consortia that receives a grant shall be a consortium described 
in subsection (b) that includes units of general local 
government from 2 or more States.

           *       *       *       *       *       *       *

TITLE VIII--HOUSING FOR PERSONS WITH SPECIAL NEEDS

           *       *       *       *       *       *       *

        Subtitle D--Housing Opportunities for Persons With AIDS

[SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
subtitle $150,000,000 for fiscal year 1993 and $156,300,000 for 
fiscal year 1994.]

SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

  There is authorized to be appropriated to carry out this 
subtitle $260,000,000 for fiscal year 2001 and such sums as may 
be necessary for each of fiscal years 2002, 2003, 2004, and 
2005.

           *       *       *       *       *       *       *

                              ----------                              

      SECTION 608 OF THE NEIGHBORHOOD REINVESTMENT CORPORATION ACT

                             authorization

  Sec. 608. (a)(1) [There are authorized to be appropriated to 
the corporation to carry out this title $29,476,000 for fiscal 
year 1993 and $30,713,992 for fiscal year 1994.] There is 
authorized to be appropriated to the corporation to carry out 
this title $95,000,000 for fiscal year 2001 and such sums as 
may be necessary for each of fiscal years 2002 through 2005. Of 
the amounts appropriated to the corporation for fiscal year 
2001, $5,000,000 shall be available only for the corporation to 
provide assistance under duplex homeownership programs 
established before the date of the enactment of the American 
Homeownership and Economic Opportunity Act of 2000 through 
Neighborworks Homeownership Center pilot projects established 
before such date of enactment. Not more than 15 percent of any 
amount appropriated under this paragraph for any fiscal year 
may be used for administrative expenses.

           *       *       *       *       *       *       *

                              ----------                              

  SECTION 4 OF THE HOUSING AND URBAN DEVELOPMENT DEMONSTRATION ACT OF 
                                  1993

SEC. 4. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE 
                    HOUSING.

  (a) In General.--The Secretary is authorized to provide 
assistance through the National Community Development 
Initiative, Local Initiatives Support Corporation, The 
Enterprise Foundation, Habitat for Humanity, National 
Association of Housing Partnerships, and Youthbuild USA to 
develop the capacity and ability of community development 
corporations and community housing development organizations to 
undertake community development and affordable housing projects 
and programs.

           *       *       *       *       *       *       *

  (e) Authorization.--There are authorized to be appropriated 
[$25,000,000 for fiscal year 1994 to carry out this section.], 
for each fiscal year, such sums as may be necessary to carry 
out this section.
                              ----------                              

   SECTION 13 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ACT

SEC. 13. NOTICE OF FUNDING AVAILABILITY.

  (a) Requirement.--In making amounts for a fiscal year under 
the covered programs under subsection (b) available to 
applicants, the Secretary shall issue a consolidated notice of 
funding availability that--
          (1) applies to as many of the covered programs as the 
        Secretary determines is practicable;
          (2) simplifies the application process for funding 
        under such programs by providing for application under 
        various covered programs through a single, unified 
        application;
          (3) promotes comprehensive approaches to housing and 
        community development by providing for applicants to 
        identify coordination of efforts under various covered 
        programs; and
          (4) clearly informs prospective applicants of the 
        general and specific requirements under law for 
        applying for funding under such programs.
  (b) Covered Programs.--The covered programs under this 
subsection are the programs that are administered by the 
Secretary and identified by the Secretary for purposes of this 
section, in the following areas:
          (1) Housing and community development programs.
          (2) Economic development and empowerment programs.
          (3) Targeted housing assistance and homeless 
        assistance programs.
                              ----------                              

  SECTION 11 OF THE HOUSING OPPORTUNITY PROGRAM EXTENSION ACT OF 1996

SEC. 11. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

  (a)  * * *

           *       *       *       *       *       *       *

  (b) Goals and Accountability.--In making grants under this 
section, the Secretary shall take such actions as may be 
necessary to ensure that--
          (1)  * * *

           *       *       *       *       *       *       *

          (4) the provision of assistance under this section 
        establishes and fosters a partnership between the 
        Federal Government and [Habitat for Humanity 
        International, its affiliates, and other] organizations 
        and consortia, resulting in efficient development of 
        affordable housing with minimal governmental 
        intervention, limited governmental regulation, and 
        significant involvement by private entities;

           *       *       *       *       *       *       *

  (d) Use.--
          (1)  * * *
          (2) Eligible expenses.--For purposes of paragraph 
        (1), the term ``eligible expenses'' means costs only 
        for the following activities:
                  (A) Land acquisition.--Acquiring land 
                (including financing and closing costs), which 
                may include reimbursing an organization, 
                consortium, or affiliate, upon approval of any 
                required environmental review, for nongrant 
                amounts of the organization, consortium, or 
                affiliate advanced before such review to 
                acquire land.

           *       *       *       *       *       *       *

  (e) Establishment of Grant Fund.--
          (1)  * * *
          (2) Assistance to affiliates.--Any organization or 
        consortia that receives a grant under this section may 
        use amounts in the fund established for such 
        organization or consortia pursuant to paragraph (1) for 
        the purposes under subsection (d) by providing 
        assistance from the fund to local affiliates of such 
        organization or [consoria] consortia.

           *       *       *       *       *       *       *

  (i) Grant Agreement.--A grant under this section shall be 
made only pursuant to a grant agreement entered into by the 
Secretary and the organization or consortia receiving the 
grant, which shall--
          (1)  * * *

           *       *       *       *       *       *       *

          (5) provide that [if the organization or consortia 
        has not used any grant amounts] the Secretary shall 
        recapture any grant amounts provided to the 
        organization or consortia that are not used within 24 
        months after such amounts are first disbursed to the 
        organization or consortia [(or,], except that such 
        period shall be 36 months in the case of grant amounts 
        from amounts made available for fiscal year 1996 to 
        carry out this section, [within 36 months), the 
        Secretary shall recapture such unused amounts] and in 
        the case of a grant amounts provided to a local 
        affiliate of the organization or consortia that is 
        developing 5 or more dwellings in connection with such 
        grant amounts; and

           *       *       *       *       *       *       *

  (j) Fulfillment of Grant Agreement.--If the Secretary 
determines that an organization or consortia awarded a grant 
under this section has not, within 24 months after grant 
amounts are first made available to the organization or 
consortia (or, in the case of grant amounts from amounts made 
available for fiscal year 1996 to carry out this section and 
grant amounts provided to a local affiliate of the organization 
or consortia that is developing 5 or more dwellings in 
connection with such grant amounts, within 36 months), 
substantially fulfilled the obligations under the grant 
agreement, including development of the appropriate number of 
dwellings under the agreement, the Secretary shall use any such 
undisbursed amounts remaining from such grant for other grants 
in accordance with this section.

           *       *       *       *       *       *       *

  [(p) Authorization of Appropriations.--To carry out this 
section, there are authorized to be appropriated for fiscal 
years 1999 and 2000 such sums as may be necessary.]
  (p) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $25,000,000 for 
fiscal year 2001 and such sums as may be necessary for each of 
fiscal years 2002 and 2003.

           *       *       *       *       *       *       *

                              ----------                              

      SECTION 106 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968

 technical assistance, counseling to tenants and homeowners, and loans 
            to sponsors of low- and moderate-income housing

    Sec. 106. (a)(1) The Secretary is authorized to provide, or 
contract with public or private organizations to provide, 
information, advice, and technical assistance, including but 
not limited to--
          (i)  * * *
          (ii) the provision of advice and technical assistance 
        to public bodies or to nonprofit or cooperative 
        organizations with respect to the construction, 
        rehabilitation, and operation of low- and moderate-
        income housing, including assistance with respect to 
        self-help and mutual self-help programs and cooperative 
        housing;

           *       *       *       *       *       *       *

    (c) Grants for Homeownership Counseling Organizations.--
          (1) In general.--The Secretary of Housing and Urban 
        Development may make grants--
                  (A) to nonprofit organizations experienced in 
                the provision of homeownership counseling to 
                enable the organizations to provide 
                homeownership counseling to eligible 
                homeowners; [and]
                  (B) to assist in the establishment of 
                nonprofit homeownership counseling 
                organizations[.];
                  (C) to the National Cooperative Bank 
                Development Corporation--
                          (i) to provide homeownership 
                        counseling to eligible homeowners that 
                        is specifically designed to relate to 
                        ownership under cooperative housing 
                        arrangements; and
                          (ii) to assist in the establishment 
                        and operation of well-managed and 
                        viable cooperative housing boards.

           *       *       *       *       *       *       *

          (4) Eligibility for counseling.--A homeowner shall be 
        eligible for homeownership counseling under this 
        subsection if--
                  (A) the home loan is secured by property that 
                is the principal residence (as defined by the 
                Secretary) of the homeowner or, in the case of 
                a home loan made to finance the purchase of 
                stock or membership in a cooperative ownership 
                housing corporation, by the stock or membership 
                interest;

           *       *       *       *       *       *       *

          (6) Definitions.--For purposes of this subsection:
                  (A) The term ``creditor'' means a person or 
                entity that is servicing a home loan on behalf 
                of itself or another person or entity and 
                includes a loan that is secured by a first lien 
                given in accordance with the laws of the State 
                where the property is located and that is made 
                to finance the purchase of stock or membership 
                in a cooperative ownership housing corporation 
                the permanent occupancy of dwelling units of 
                which is restricted to members of such 
                corporation, where the purchase of such stock 
                or membership will entitle the purchaser to the 
                permanent occupancy of 1 of such units.

           *       *       *       *       *       *       *

                              ----------                              

 SECTION 1101 OF THE RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT 
                                OF 1992

SEC. 1011. GRANTS FOR LEAD-BASED PAINT HAZARD REDUCTION IN TARGET 
                    HOUSING.

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Eligible Activities.--A grant under this section may be 
used to--
          (1)  * * *

           *       *       *       *       *       *       *

          (7) assist in the temporary relocation of families 
        forced to vacate housing while lead hazard reduction 
        measures are being conducted, which may include leasing 
        of lead-safe temporary housing;

           *       *       *       *       *       *       *

          (9) test soil, interior surface dust, and the blood-
        lead levels of children under the age of 6 residing in 
        housing after lead-based paint hazard reduction 
        activity has been conducted, to assure that such 
        activity does not cause excessive exposures to lead; 
        [and]
          (10) provide accessible information through 
        centralized locations that provide a variety of 
        residential lead-based paint poisoning prevention 
        services to the community that such services are 
        intended to benefit; and
          [(10)] (11) carry out such other activities that the 
        Secretary determines appropriate to promote the 
        purposes of this Act.

           *       *       *       *       *       *       *

                              ----------                              

 NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT OF 1996

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a)  * * *
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title.
     * * * * * * *

                 TITLE II--AFFORDABLE HOUSING ACTIVITIES

Sec. 201. National objectives and eligible families.
[Sec. 206. Certification of compliance with subsidy layering 
          requirements.]
     * * * * * * *
[Sec. 209. Repayment.]
Sec. 209. Noncompliance with affordable housing requirement.
     * * * * * * *

              TITLE I--BLOCK GRANTS AND GRANT REQUIREMENTS

SEC. 101. BLOCK GRANTS.

  (a)  * * *
  (b) Plan Requirement.--
          (1)  * * *

           *       *       *       *       *       *       *

          (2) Waiver.--The Secretary may waive the 
        applicability of the requirements under paragraph (1), 
        in whole or in part, [ifthe Secretary finds that an 
Indian tribe has not complied or cannot comply with such requirements 
due to circumstances beyond the control of the tribe.] for a period of 
not more than 90 days, if the Secretary determines that an Indian tribe 
has not complied with, or is unable to comply with, those requirements 
due to exigent circumstances beyond the control of the Indian tribe.
  (c) Local Cooperation Agreement.--Notwithstanding any other 
provision of this Act, grant amounts provided under this Act on 
behalf of an Indian tribe may not be used for rental or lease-
purchase homeownership units that are owned by the recipient 
for the tribe unless the governing body of the locality within 
which the property subject to the development activities to be 
assisted with the grant amounts is or will be situated has 
entered into an agreement with the recipient for the tribe 
providing for local cooperation required by the Secretary 
pursuant to this Act. The Secretary may waive the requirements 
of this subsection and subsection (d) if the recipient has made 
a good faith effort to fulfill the requirements of this 
subsection and subsection (d) and agrees to make payments in 
lieu of taxes to the appropriate taxing authority in an amount 
consistent with the requirements of subsection (d)(2) until 
such time as the matter of making such payments has been 
resolved in accordance with subsection (d).

           *       *       *       *       *       *       *

SEC. 102. INDIAN HOUSING PLANS.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) 1-Year Plan.--A housing plan under this section for an 
Indian tribe shall be in a form prescribed by the Secretary and 
contain the following information relating to the upcoming 
fiscal year for which the assistance under this Act is to be 
made available:
          (1)  * * *

           *       *       *       *       *       *       *

          (6) Certain families.--With respect to assistance 
        provided under section 201(b)(2) by a recipient to 
        Indian families that are not low-income families, 
        evidence that there is a need for housing for each such 
        family during that period that cannot reasonably be met 
        without such assistance.

           *       *       *       *       *       *       *

  [(f) Plans for Small Tribes.--
          [(1) Separate requirements.--The Secretary may--
                  [(A) establish requirements for submission of 
                plans under this section and the information to 
                be included in such plans applicable to small 
                Indian tribes and small tribally designated 
                housing entities; and
                  [(B) waive any requirements under this 
                section that the Secretary determines are 
                burdensome or unnecessary for such tribes and 
                housing entities.
          [(2) Small tribes.--The Secretary may define small 
        Indian tribes and small tribally designated housing 
        entities based on the number of dwelling units assisted 
        under this title by the tribe or housing entity or 
        owned or operated pursuant to a contract under the 
        United States Housing Act of 1937 between the Secretary 
        and the Indian housing authority for the tribe.]
  [(g)] (f) Regulations.--The requirements relating to the 
contents of plans under this section shall be established by 
regulation, pursuant to section 106.

           *       *       *       *       *       *       *

SEC. 104. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.

  (a)  * * *

           *       *       *       *       *       *       *

  (b) Labor Standards.--
          (1) In general.--Any contract or agreement for 
        assistance, sale, or lease pursuant to this Act shall 
        contain a provision requiring that not less than the 
        wages prevailing in the locality, as determined or 
        adopted (subsequent to a determination under applicable 
        State, tribal, or local law) by the Secretary, shall be 
        paid to all architects, technical engineers, draftsmen, 
        and technicians employed in the development, and all 
        maintenance laborers and mechanics employed in the 
        operation, of the affordable housing project involved; 
        and shall also contain a provision that not less than 
        the wages prevailing in the locality, as predetermined 
        by the Secretary of Labor pursuant to the [Davis-Bacon 
        Act (40 U.S.C. 276a-276a-5)] Act of March 3, 1931 
        (commonly known as the Davis-Bacon Act; chapter 411; 46 
        Stat. 1494; 40 U.S.C 276a et seq.), shall be paid to 
        all laborers and mechanics employed in the development 
        of the affordable housing involved, and the Secretary 
        shall require certification as to compliance with the 
        provisions of this paragraph before making any payment 
        under such contract or agreement.

           *       *       *       *       *       *       *

SEC. 105. ENVIRONMENTAL REVIEW.

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Environmental Compliance.--The Secretary may waive the 
requirements under this section if the Secretary determines 
that a failure on the part of a recipient to comply with 
provisions of this section--
          (1) will not frustrate the goals of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4331 et 
        seq.) or any other provision of law that furthers the 
        goals of that Act;
          (2) does not threaten the health or safety of the 
        community involved by posing an immediate or long-term 
        hazard to residents of that community;
          (3) is a result of inadvertent error, including an 
        incorrect or incomplete certification provided under 
        subsection (c)(1); and
          (4) may be corrected through the sole action of the 
        recipient.

           *       *       *       *       *       *       *

                TITLE II--AFFORDABLE HOUSING ACTIVITIES

SEC. 201. NATIONAL OBJECTIVES AND ELIGIBLE FAMILIES.

  (a)  * * *

           *       *       *       *       *       *       *

  (b) Eligible Families.--
          (1) In general.--Except as provided under [paragraph 
        (2)] paragraphs (2) and (4), assistance under eligible 
        housing activities under this Act shall be limited to 
        low-income Indian families on Indian reservations and 
        other Indian areas.

           *       *       *       *       *       *       *

          (4) Law enforcement officers.--A recipient may 
        provide housing or housing assistance provided through 
        affordable housing activities assisted with grant 
        amounts under this Act for a law enforcement officer on 
        an Indian reservation or other Indian area, if--
                  (A) the officer--
                          (i) is employed on a full-time basis 
                        by the Federal Government or a State, 
                        county, or tribal government; and
                          (ii) in implementing such full-time 
                        employment, is sworn to uphold, and 
                        make arrests for, violations of 
                        Federal, State, county, or tribal law; 
                        and
                  (B) the recipient determines that the 
                presence of the law enforcement officer on the 
                Indian reservation or other Indian area may 
                deter crime.
          [(4)] (5) Preference for tribal members and other 
        indian families.--The Indian housing plan for an Indian 
        tribe may require preference, for housing or housing 
        assistance provided through affordable housing 
        activities assisted with grant amounts provided under 
        this Act on behalf of such tribe, to be given (to the 
        extent practicable) to Indian families who are members 
        of such tribe, or to other Indian families. In any case 
        in which the applicable Indian housing plan for an 
        Indian tribe provides for preference under this 
        paragraph, the recipient for the tribe shall ensure 
        that housing activities that are assisted with grant 
        amounts under this Act for such tribe are subject to 
        such preference.
          [(5)] (6) Exemption.--Title VI of the Civil Rights 
        Act of 1964 and title VIII of the Civil Rights Act of 
        1968 shall not apply to actions by federally recognized 
        tribes and the tribally designated housing entities of 
        those tribes under this Act.

           *       *       *       *       *       *       *

[SEC. 206. CERTIFICATION OF COMPLIANCE WITH SUBSIDY LAYERING 
                    REQUIREMENTS.

  [With respect to housing assisted with grant amounts provided 
under this Act, the requirements of section 102(d) of the 
Department of Housing and Urban Development Reform Act of 1989 
shall be considered to be satisfied upon certification by a 
recipient to the Secretary that the combination of Federal 
assistance provided to the housing project involved is not any 
more than is necessary to provide affordable housing.]

           *       *       *       *       *       *       *

[SEC. 209. REPAYMENT.

  [If a recipient uses grant amounts to provide affordable 
housing under activities under this title and, at any time 
during the useful life of the housing the housing does not 
comply with the requirement under section 205(a)(2), the 
Secretary shall reduce future grant payments on behalf of the 
grant beneficiary by an amount equal to the grant amounts used 
for such housing (under the authority under section 401(a)(2)) 
or require repayment to the Secretary of an amount equal to 
such grant amounts.]

SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING REQUIREMENT.

  If a recipient uses grant amounts to provide affordable 
housing under this title, and at any time during the useful 
life of the housing the recipient does not comply with the 
requirement under section 205(a)(2), the Secretary shall take 
appropriate action under section 401(a).

           *       *       *       *       *       *       *

TITLE III--ALLOCATION OF GRANT AMOUNTS

           *       *       *       *       *       *       *

SEC. 302. ALLOCATION FORMULA.

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Funding for Public Housing Operation and 
Modernization.--
          (1) Full funding.--[The formula,]
                  (A) In general.--Except with respect to an 
                Indian tribe described in subparagraph (B), the 
                formula shall provide that, if, in any fiscal 
                year, the total amount made available for 
                assistance under this Act is equal to or 
                greater than the total amount made available 
                for fiscal year 1996 for assistance for the 
                operation and modernization of public housing 
                developed or operated pursuant to a contract 
                between the Secretary and an Indian housing 
                authority pursuant to the United States Housing 
                Act of 1937, the amount provided for such 
                fiscal year for each Indian tribe for which 
                such operating or modernization assistance was 
                provided for fiscal year 1996 shall not be less 
                than the total amount of such operating and 
                modernization assistance provided for fiscal 
                year 1996 for such tribe.
                  (B) Certain indian tribes.--With respect to 
                fiscal year 2001 and each fiscal year 
                thereafter, for any Indian tribe with an Indian 
                housing authority that owns or operates fewer 
                than 250 public housing units, the formula 
                shall provide that if the amount provided for a 
                fiscal year in which the total amount made 
                available for assistance under this Act is 
                equal to or greater than the amount made 
                available for fiscal year 1996 for assistance 
                for the operation and modernization of the 
                public housing referred to in subparagraph (A), 
                then the amount provided to that Indian tribe 
                as modernization assistance shall be equal to 
                the average annual amount of funds provided to 
                the Indian tribe (other than funds provided as 
                emergency assistance) under the assistance 
                program under section 14 of the United States 
                Housing Act of 1937 (42 U.S.C. 1437l) for the 
                period beginning with fiscal year 1992 and 
                ending with fiscal year 1997.

           *       *       *       *       *       *       *

               TITLE IV--COMPLIANCE, AUDITS, AND REPORTS

SEC. 401. REMEDIES FOR NONCOMPLIANCE.

  (a) Actions by Secretary Affecting Grant Amounts.--[Except as 
provided]
          (1) In general.--Except as provided in subsection 
        (b), if the Secretary finds after reasonable notice and 
        opportunity for hearing that a recipient of assistance 
        under this Act has failed to comply substantially with 
        any provision of this Act, the Secretary shall--
                  [(1)] (A) terminate payments under this Act 
                to the recipient;
                  [(2)] (B) reduce payments under this Act to 
                the recipient by an amount equal to the amount 
                of such payments that were not expended in 
                accordance with this Act;
                  [(3)] (C) limit the availability of payments 
                under this Act to programs, projects, or 
                activities not affected by such failure to 
                comply; or
                  [(4)] (D) in the case of noncompliance 
                described in section 402(b), provide a 
                replacement tribally designated housing entity 
                for the recipient, under section 402.
[If the Secretary takes an action under paragraph (1), (2), or 
(3)]
          (2) Continuance of actions.--If the Secretary takes 
        an action under subparagraph (A), (B), or (C) of 
        paragraph (1), the Secretary shall continue such action 
        until the Secretary determines that the failure to 
        comply has ceased.
          (3) Exception for certain actions.--
                  (A) In general.--Notwithstanding any other 
                provision of this subsection, if the Secretary 
                makes a determination that the failure of a 
                recipient of assistance under this Act to 
                comply substantially with any material 
                provision (as that term is defined by the 
                Secretary) of this Act is resulting, and would 
                continue to result, in a continuing expenditure 
                of Federal funds in a manner that is not 
                authorized by law, the Secretary may take an 
                action described in paragraph (1)(C) before 
                conducting a hearing.
                  (B) Procedural requirement.--If the Secretary 
                takes an action described in subparagraph (A), 
                the Secretary shall--
                          (i) provide notice to the recipient 
                        at the time that the Secretary takes 
                        that action; and
                          (ii) conduct a hearing not later than 
                        60 days after the date on which the 
                        Secretary provides notice under clause 
                        (i).
                  (C) Determination.--Upon completion of a 
                hearing under this paragraph, the Secretary 
                shall make a determination regarding whether to 
                continue taking the action that is the subject 
                of the hearing, or take another action under 
                this subsection.
  (b) Noncompliance Because of Technical Incapacity.--[If the 
Secretary]
          (1) In general.--If the Secretary makes a finding 
        under subsection (a), but determines that the failure 
        to comply substantially with the provisions of this 
        Act--
                  [(1)] (A) is not a pattern or practice of 
                activities constituting willful noncompliance, 
                and
                  [(2)] (B) is a result of the limited 
                capability or capacity of the recipient,
        the Secretary may provide technical assistance for the 
        recipient (directly or indirectly) that is designed to 
        increase the capability and capacity of the recipient 
        to administer assistance provided under this Act in 
        compliance with the requirements under this Act, if the 
        recipient enters into a performance agreement with the 
        Secretary that specifies the compliance objectives that 
        the recipient will be required to achieve by the 
        termination date of the performance agreement.

           *       *       *       *       *       *       *

          (2) Performance agreement.--The period of a 
        performance agreement described in paragraph (1) shall 
        be for 1 year.
          (3) Review.--Upon the termination of a performance 
        agreement entered into under paragraph (1), the 
        Secretary shall review the performance of the recipient 
        that is a party to the agreement.
          (4) Effect of review.--If, on the basis of a review 
        under paragraph (3), the Secretary determines that the 
        recipient--
                  (A) has made a good faith effort to meet the 
                compliance objectives specified in the 
                agreement, the Secretary may enter into an 
                additional performance agreement for the period 
                specified in paragraph (2); and
                  (B) has failed to make a good faith effort to 
                meet applicable compliance objectives, the 
                Secretary shall determine the recipient to have 
                failed to comply substantially with this Act, 
                and the recipient shall be subject to an action 
                under subsection (a).

           *       *       *       *       *       *       *

[SEC. 405. REVIEW AND AUDIT BY SECRETARY.

  [(a) Annual Review.--The Secretary shall, not less than on an 
annual basis, make such reviews and audits as may be necessary 
or appropriate to determine--
          [(1) whether the recipient has carried out its 
        eligible activities in a timely manner, has carried out 
        its eligible activities and certifications in 
        accordance with the requirements and the primary 
        objectives of this Act and with other applicable laws, 
        and has a continuing capacity to carry out those 
        activities in a timely manner;
          [(2) whether the recipient has complied with the 
        Indian housing plan of the grant beneficiary; and
          [(3) whether the performance reports under section 
        404 of the recipient are accurate.
Reviews under this section shall include, insofar as 
practicable, onsite visits by employees of the Department of 
Housing and Urban Development.
  [(b) Report by Secretary.--The Secretary shall give a 
recipient not less than 30 days to review and comment on a 
report under this subsection. After taking into consideration 
the comments of the recipient, the Secretary may revise the 
report and shall make the comments of the recipient and the 
report, with any revisions, readily available to the public not 
later than 30 days after receipt of the comments of the 
recipient.
  [(c) Effect of Reviews.--The Secretary may make appropriate 
adjustments in the amount of the annual grants under this Act 
in accordance with the findings of the Secretary pursuant to 
reviews and audits under this section. The Secretary may 
adjust, reduce, or withdraw grant amounts, or take other action 
as appropriate in accordance with the reviews and audits of the 
Secretary under this section, except that grant amounts already 
expended on affordable housing activities may not be recaptured 
or deducted from future assistance provided on behalf of an 
Indian tribe.]

SEC. 405. REVIEW AND AUDIT BY SECRETARY.

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

           *       *       *       *       *       *       *

      TITLE V--TERMINATION OF ASSISTANCE FOR INDIAN TRIBES UNDER 
INCORPORATED PROGRAMS

           *       *       *       *       *       *       *

SEC. 502. TERMINATION OF INDIAN HOUSING ASSISTANCE UNDER UNITED STATES 
                    HOUSING ACT OF 1937.

  (a) Termination of Assistance.--After September 30, 1997, 
financial assistance may not be provided under the United 
States Housing Act of 1937 or pursuant to any commitment 
entered into under such Act, for Indian housing developed or 
operated pursuant to a contract between the Secretary and an 
Indian housing 
authority, unless such assistance is provided from amounts made 
available for fiscal year 1997 and pursuant to a commitment 
entered into before September 30, 1997. Any housing that is the 
subject of a contract for tenant-based assistance between the 
Secretary and an Indian housing authority that is terminated 
under this section shall, for the following fiscal year and 
each fiscal year thereafter, be considered to be a dwelling 
unit under section 302(b)(1).

           *       *       *       *       *       *       *

                              ----------                              

  SECTION 204 OF THE DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND 
  URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1997

  Sec. 204. [Flexible Authority] Disposition of HUD-Owned 
Properties. (a) Flexible Authority for Multifamily Projects.--
During fiscal year 1997 and fiscal years thereafter, the 
Secretary may manage and dispose of multifamily properties 
owned by the Secretary, including, for fiscal years 1997, 1998, 
1999, and 2000, the provision of grants and loans from the 
General Insurace Fund (12 U.S.C. 1735(c)) for the necessary 
costs of rehabilitation, demolition, or construction on the 
properties (which shall be eligible whether vacant or occupied) 
and multifamily mortgages held by the Secretary on such terms 
and conditions as the Secretary may determine, notwithstanding 
any other provision of law.
  (b) Transfer of Unoccupied and Substandard Housing to Local 
Governments and Community Development Corporations.--
          (1) Transfer authority.--Notwithstanding the 
        authority under subsection (a) and the last sentence of 
        section 204(g) of the National Housing Act (12 U.S.C. 
        1710(g)), the Secretary of Housing and Urban 
        Development shall transfer ownership of any qualified 
        HUD property, subject to the requirements of this 
        section, to a unit of general local government having 
        jurisdiction for the area in which the property is 
        located or to a community development corporation which 
        operates within such a unit of general local government 
        in accordance with this subsection, but only to the 
        extent that units of general local government and 
        community development corporations consent to transfer 
        and the Secretary determines that such transfer is 
        practicable.
          (2) Qualified hud properties.--For purposes of this 
        subsection, the term ``qualified HUD property'' means 
        any property for which, as of the date that 
        notification of the property is first made under 
        paragraph (3)(B), not less than 6 months have elapsed 
        since the later of the date that the property was 
        acquired by the Secretary or the date that the property 
        was determined to be unoccupied or substandard, that is 
        owned by the Secretary and is--
                  (A) an unoccupied multifamily housing 
                project;
                  (B) a substandard multifamily housing 
                project; or
                  (C) an unoccupied single family property 
                that--
                          (i) has been determined by the 
                        Secretary not to be an eligible 
                        property under section 204(h) of the 
                        National Housing Act (12 U.S.C. 
                        1710(h)); or
                          (ii) is an eligible property under 
                        such section 204(h), but--
                                  (I) is not subject to a 
                                specific sale agreement under 
                                such section; and
                                  (II) has been determined by 
                                the Secretary to be 
                                inappropriate for continued 
                                inclusion in the program under 
                                such section 204(h) pursuant to 
                                paragraph (10) of such section.
          (3) Timing.--The Secretary shall establish procedures 
        that provide for--
                  (A) time deadlines for transfers under this 
                subsection;
                  (B) notification to units of general local 
                government and community development 
                corporations of qualified HUD properties in 
                their jurisdictions;
                  (C) such units and corporations to express 
                interest in the transfer under this subsection 
                of such properties;
                  (D) a right of first refusal for transfer of 
                qualified HUD properties to units of general 
                local government and community development 
                corporations, under which--
                          (i) the Secretary shall establish a 
                        period during which the Secretary may 
                        not transfer such properties except to 
                        such units and corporations;
                          (ii) the Secretary shall offer 
                        qualified HUD properties that are 
                        single family properties for purchase 
                        by units of general local government at 
                        a cost of $1 for each property, but 
                        only to the extent that the costs to 
                        the Federal Government of disposal at 
                        such price do not exceed the costs to 
                        the Federal Government of disposing of 
                        property subject to the procedures for 
                        single family property established by 
                        the Secretary pursuant to the authority 
                        under the last sentence of section 
                        204(g) of the National Housing Act (12 
                        U.S.C. 1710(g));
                          (iii) the Secretary may accept an 
                        offer to purchase a property made by a 
                        community development corporation only 
                        if the offer provides for purchase on a 
                        cost recovery basis; and
                          (iv) the Secretary shall accept an 
                        offer to purchase such a property that 
                        is made during such period by such a 
                        unit or corporation and that complies 
                        with the requirements of this 
                        paragraph;
                  (E) a written explanation, to any unit of 
                general local government or community 
                development corporation making an offer to 
                purchase a qualified HUD property under this 
                subsection that is not accepted, of the reason 
                that such offer was not acceptable.
          (4) Other disposition.--With respect to any qualified 
        HUD property, if the Secretary does not receive an 
        acceptable offer to purchase the property pursuant to 
        the procedure established under paragraph (3), the 
        Secretary shall dispose of the property to the unit of 
        general local government in which property is located 
        or to community development corporations located in 
        such unit of general local government on a negotiated, 
        competitive bid, or other basis, on such terms as the 
        Secretary deems appropriate.
          (5) Satisfaction of indebtedness.--Before 
        transferring ownership of any qualified HUD property 
        pursuant to this subsection, the Secretary shall 
        satisfy any indebtedness incurred in connection with 
        the property to be transferred, by canceling the 
        indebtedness.
          (6) Determination of status of properties.--To ensure 
        compliance with the requirements of this subsection, 
        the Secretary shall take the following actions:
                  (A) Upon enactment.--Upon the enactment of 
                the American Homeownership and Economic 
                Opportunity Act of 2000, the Secretary shall 
                promptly assess each residential property owned 
                by the Secretary to determine whether such 
                property is a qualified HUD property.
                  (B) Upon acquisition.--Upon acquiring any 
                residential property, the Secretary shall 
                promptly determine whether the property is a 
                qualified HUD property.
                  (C) Updates.--The Secretary shall 
                periodically reassess the residential 
                properties owned by the Secretary to determine 
                whether any such properties have become 
                qualified HUD properties.
          (7) Tenant leases.--This subsection shall not affect 
        the terms or the enforceability of any contract or 
        lease entered into with respect to any residential 
        property before the date that such property becomes a 
        qualified HUD property.
          (8) Use of property.--Property transferred under this 
        subsection shall be used only for appropriate 
        neighborhood revitalization efforts, including 
        homeownership, rental units, commercial space, and 
        parks, consistent with local zoning regulations, local 
        building codes, and subdivision regulations and 
        restrictions of record.
          (9) Inapplicability to properties made available for 
        homeless.--Notwithstanding any other provision of this 
        subsection, this subsection shall not apply to any 
        properties that the Secretary determines are to be made 
        available for use by the homeless pursuant to subpart E 
        of part 291 of title 24, Code of Federal Regulations, 
        during the period that the properties are so available.
          (10) Protection of existing contracts.--This 
        subsection may not be construed to alter, affect, or 
        annul any legally binding obligations entered into with 
        respect to a qualified HUD property before the property 
        becomes a qualified HUD property.
          (11) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  (A) Community development corporation.--The 
                term ``community development corporation'' 
                means a nonprofit organization whose primary 
                purpose is to promote community development by 
                providing housing opportunities for low-income 
                families.
                  (B) Cost recovery basis.--The term ``cost 
                recovery basis'' means, with respect to any 
                sale of a residential property by the 
                Secretary, that the purchase price paid by the 
                purchaser is equal to or greater than the sum 
                of (i) the appraised value of the property, as 
                determined in accordance with such requirements 
                as the Secretary shall establish, and (ii) the 
                costs incurred by the Secretary in connection 
                with such property during the period beginning 
                on the date on which the Secretary acquires 
                title to the property and ending on the date on 
                which the sale is consummated.
                  (C) Multifamily housing project.--The term 
                ``multifamily housing project'' has the meaning 
                given the term in section 203 of the Housing 
                and Community Development Amendments of 1978.
                  (D) Residential property.--The term 
                ``residential property'' means a property that 
                is a multifamily housing project or a single 
                family property.
                  (E) Secretary.--The term ``Secretary'' means 
                the Secretary of Housing and Urban Development.
                  (F) Severe physical problems.--The term 
                ``severe physical problems'' means, with 
                respect to a dwelling unit, that the unit--
                          (i) lacks hot or cold piped water, a 
                        flush toilet, or both a bathtub and a 
                        shower in the unit, for the exclusive 
                        use of that unit;
                          (ii) on not less than 3 separate 
                        occasions during the preceding winter 
                        months, was uncomfortably cold for a 
                        period of more than 6 consecutive hours 
                        due to a malfunction of the heating 
                        system for the unit;
                          (iii) has no functioning electrical 
                        service, exposed wiring, any room in 
                        which there is not a functioning 
                        electrical outlet, or has experienced 3 
                        or more blown fuses or tripped circuit 
                        breakers during the preceding 90-day 
                        period;
                          (iv) is accessible through a public 
                        hallway in which there are no working 
                        light fixtures, loose or missing steps 
                        or railings, and no elevator; or
                          (v) has severe maintenance problems, 
                        including water leaks involving the 
                        roof, windows, doors, basement, or 
                        pipes or plumbing fixtures, holes or 
                        open cracks in walls or ceilings, 
                        severe paint peeling or broken plaster, 
                        and signs of rodent infestation.
                  (G) Single family property.--The term 
                ``single family property'' means a 1- to 4-
                family residence.
                  (H) Substandard.--The term ``substandard'' 
                means, with respect to a multifamily housing 
                project, that 25 percent or more of the 
                dwelling units in the project have severe 
                physical problems.
                  (I) Unit of general local government.--The 
                term ``unit of general local government'' has 
                the meaning given such term in section 102(a) 
                of the Housing and Community Development Act of 
                1974.
                  (J) Unoccupied.--The term ``unoccupied'' 
                means, with respect to a residential property, 
                that the unit of general local government 
                having jurisdiction over the area in which the 
                project is located has certified in writing 
                that the property is not inhabited.
          (12) Regulations.--
                  (A) Interim.--Not later than 30 days after 
                the date of the enactment of the American 
                Homeownership and Economic Opportunity Act of 
                2000, the Secretary shall issue such interim 
                regulations as are necessary to carry out this 
                subsection.
                  (B) Final.--Not later than 60 days after the 
                date of the enactment of the American 
                Homeownership and Economic Opportunity Act of 
                2000, the Secretary shall issue such final 
                regulations as are necessary to carry out this 
                subsection.
                              ----------                              

HOMEOWNERS PROTECTION ACT OF 1998

           *       *       *       *       *       *       *

SEC. 2. DEFINITIONS.

  In this Act, the following definitions shall apply:
          (1) Adjustable rate mortgage.--The term ``adjustable 
        rate mortgage'' means a residential mortgage that has 
        an interest rate that is subject to change. A 
        residential mortgage that (A) does not fully amortize 
        over the term of the obligation, and (B) contains a 
        conditional right to refinance or modify the 
        unamortized principal at the maturity date of the term, 
        shall be considered to be an adjustable rate mortgage 
        for purposes of this Act.
          (2) Cancellation date.--The term ``cancellation 
        date'' means--
                  (A) * * *
                  (B) with respect to an adjustable rate 
                mortgage, at the option of the mortgagor, the 
                date on which the principal balance of the 
                mortgage--
                          (i) based solely on [amortization 
                        schedules] the amortization schedule 
                        then in effect for that mortgage, and 
                        irrespective of the outstanding balance 
                        for that mortgage on that date, is 
                        first scheduled to reach 80 percent of 
                        the original value of the property 
                        securing the loan; or
                          (ii) based solely on actual payments, 
                        first reaches 80 percent of the 
                        original value of the property securing 
                        the loan.

           *       *       *       *       *       *       *

          (4) Good payment history.--The term ``good payment 
        history'' means, with respect to a mortgagor, that the 
        mortgagor has not--
                  (A) made a mortgage payment that was 60 days 
                or longer past due during the 12-month period 
                beginning 24 months before the date the later 
                of (i) on which the mortgage reaches the 
                cancellation date, or (ii) the date that the 
                mortgagor submits a request for cancellation 
                under section 3(a)(1); or
                  (B) made a mortgage payment that was 30 days 
                or longer past due during the 12-month period 
                preceding the later of (i) the date on which 
                the mortgage reaches the cancellation date, or 
                (ii) the date that the mortgagor submits a 
                request for cancellation under section 3(a)(1).

           *       *       *       *       *       *       *

          (6) Amortization schedule then in effect.--The term 
        ``amortization schedule then in effect'' means, with 
        respect to an adjustable rate mortgage, a schedule 
        established at the time at which the residential 
        mortgage transaction is consummated or, if such 
        schedule has been changed or recalculated, is the most 
        recent schedule under the terms of the note or 
        mortgage, which shows--
                  (A) the amount of principal and interest that 
                is due at regular intervals to retire the 
                principal balance and accrued interest over the 
                remaining amortization period of the loan; and
                  (B) the unpaid balance of the loan after each 
                such scheduled payment is made.
          (7) Midpoint of the amortization period.--The term 
        ``midpoint of the amortization period'' means, with 
        respect to a residential mortgage transaction, the 
        point in time that is halfway through the period that 
        begins upon the first day of the amortization period 
        established at the time a residential mortgage 
        transaction is consummated and ends upon the completion 
        of the entire period over which the mortgage is 
        scheduled to be amortized.
          [(6)] (8) Mortgage insurance.--The term ``mortgage 
        insurance'' means insurance, including any mortgage 
        guaranty insurance, against the nonpayment of, or 
        default on, an individual mortgage or loan involved in 
        a residential mortgage transaction.
          [(7)] (9) Mortgage insurer.--The term ``mortgage 
        insurer'' means a provider of private mortgage 
        insurance, as described in this Act, that is authorized 
        to transact such business in the State in which the 
        provider is transacting such business.
          [(8)] (10) Mortgagee.--The term ``mortgagee'' means 
        the holder of a residential mortgage at the time at 
        which that mortgage transaction is consummated.
          [(9)] (11) Mortgagor.--The term ``mortgagor'' means 
        the original borrower under a residential mortgage or 
        his or her successors or assignees.
          [(10)] (12) Original value.--The term ``original 
        value'', with respect to a residential mortgage 
        transaction, means the lesser of the sales price of the 
        property securing the mortgage, as reflected in the 
        contract, or the appraised value at the time at which 
        the subject residential mortgage transaction was 
        consummated. In the case of a residential mortgage 
        transaction for refinancing the principal residence of 
        the mortgagor, such term means only the appraised value 
        relied upon by the mortgagee to approve the refinance 
        transaction.
          [(11)] (13) Private mortgage insurance.--The term 
        ``private mortgage insurance'' means mortgage insurance 
        other than mortgage insurance made available under the 
        National Housing Act, title 38 of the United States 
        Code, or title V of the Housing Act of 1949.
          [(12)] (14) Residential mortgage.--The term 
        ``residential mortgage'' means a mortgage, loan, or 
        other evidence of a security interest created with 
        respect to a single-family dwelling that is the 
        [primary] principal residence of the mortgagor.
          [(13)] (15) Residential mortgage transaction.--The 
        term ``residential mortgage transaction'' means a 
        transaction consummated on or after the date that is 1 
        year after the date of enactment of this Act, in which 
        a mortgage, deed of trust, purchase money security 
        interest arising under an installment sales contract, 
        or equivalent consensual security interest is created 
        or retained against a single-family dwelling that is 
        the [primary] principal residence of the mortgagor to 
        finance the acquisition, initial construction, or 
        refinancing of that dwelling.
          [(14)] (16) Servicer.--The term ``servicer'' has the 
        same meaning as in section 6(i)(2) of the Real Estate 
        Settlement Procedures Act of 1974, with respect to a 
        residential mortgage.
          [(15)] (17) Single-family dwelling.--The term 
        ``single-family dwelling'' means a residence consisting 
        of 1 family dwelling unit.
          [(16)] (18) Termination date.--The term ``termination 
        date'' means--
                  (A) with respect to a fixed rate mortgage, 
                the date on which the principal balance of the 
                mortgage, based solely on the initial 
                amortization schedule for that mortgage, and 
                irrespective of the outstanding balance for 
                that mortgage on that date, is first scheduled 
                to reach 78 percent of the original value of 
                the property securing the loan; and
                  (B) with respect to an adjustable rate 
                mortgage, the date on which the principal 
                balance of the mortgage, based solely on 
                [amortization schedules] the amortization 
                schedule then in effect for that mortgage, and 
                irrespective of the outstanding balance for 
                that mortgage on that date, is first scheduled 
                to reach 78 percent of the original value of 
                the property securing the loan.

SEC. 3. TERMINATION OF PRIVATE MORTGAGE INSURANCE.

  (a) Borrower Cancellation.--A requirement for private 
mortgage insurance in connection with a residential mortgage 
transaction shall be canceled on the cancellation date or any 
later date that the mortgagor fulfills all of the requirements 
under paragraphs (1) through (4), if the mortgagor--
          (1) submits a request in writing to the servicer that 
        cancellation be initiated;
          (2) has a good payment history with respect to the 
        residential mortgage; [and]
          (3) is current on the payments required by the terms 
        of the residential mortgage transaction; and
          [(3)] (4) has satisfied any requirement of the holder 
        of the mortgage (as of the date of a request under 
        paragraph (1)) for--
                  (A) evidence (of a type established in 
                advance and made known to the mortgagor by the 
                servicer promptly upon receipt of a request 
                under paragraph (1)) that the value of the 
                property securing the mortgage has not declined 
                below the original value of the property; and
                  (B) certification that the equity of the 
                mortgagor in the residence securing the 
                mortgage is unencumbered by a subordinate lien.
  (b) Automatic Termination.--A requirement for private 
mortgage insurance in connection with a residential mortgage 
transaction shall terminate with respect to payments for that 
mortgage insurance made by the mortgagor--
          (1) * * *
          [(2) on the date after the termination date on which 
        the mortgagor becomes current on the payments required 
        by the terms of the residential mortgage transaction.]
          (2) if the mortgagor is not current on the 
        termination date, on the first day of the first month 
        beginning after the date that the mortgagor becomes 
        current on the payments required by the terms of the 
        residential mortgage transaction.
  (c) Final Termination.--If a requirement for private mortgage 
insurance is not otherwise canceled or terminated in accordance 
with subsection (a) or (b), in no case may such a requirement 
be imposed on residential mortgage transactions beyond the 
first day of the month immediately following the date that is 
the midpoint of the amortization period of the loan if the 
mortgagor is current on the payments required by the terms of 
the mortgage.
  (d) Treatment of Loan Modifications.--If a mortgagor and 
mortgagee (or holder of the mortgage) agree to a modification 
of the terms or conditions of a loan pursuant to a residential 
mortgage transaction, the cancellation date, termination date, 
or final termination shall be recalculated to reflect the 
modified terms and conditions of such loan.
  [(d)] (e) No Further Payments.--No payments or premiums may 
be required from the mortgagor in connection with a private 
mortgage insurance requirement terminated or canceled under 
this section--
          (1) in the case of cancellation under subsection (a), 
        more than 30 days after the later of--
                  (A) the date on which a request under 
                subsection (a)(1) is received; or
                  (B) the date on which the mortgagor satisfies 
                any evidence and certification requirements 
                under subsection [(a)(3)] (a)(4);
          (2) in the case of termination under subsection (b), 
        more than 30 days after the termination date or the 
        date referred to in subsection (b)(2), as applicable; 
        and
          (3) in the case of termination under subsection (c), 
        more than 30 days after the final termination date 
        established under that subsection.
  [(e)] (f) Return of Unearned Premiums.--
          (1) In general.--Not later than 45 days after the 
        termination or cancellation of a private mortgage 
        insurance requirement under this section, all unearned 
        premiums for private mortgage insurance shall be 
        returned to the mortgagor by the servicer.
          (2) Transfer of funds to servicer.--Not later than 30 
        days after notification by the servicer of termination 
        or cancellation of private mortgage insurance under 
        this Act with respect to a mortgagor, a mortgage 
        insurer that is in possession of any unearned premiums 
        of that mortgagor shall transfer to the servicer of the 
        subject mortgage an amount equal to the amount of the 
        unearned premiums for repayment in accordance with 
        paragraph (1).
  [(f)] (g) Exceptions for High Risk Loans.--
          (1) In general.--The termination and cancellation 
        provisions in subsections (a) and (b) do not apply to 
        any residential [mortgage or] mortgage transaction 
        that, at the time at which the residential mortgage 
        transaction is consummated, has high risks associated 
        with the extension of the loan--
                  (A) as determined in accordance with 
                guidelines published by the Federal National 
                Mortgage Association and the Federal Home Loan 
                Mortgage Corporation, in the case of a mortgage 
                loan with an original principal balance that 
                does not exceed the applicable annual 
                conforming loan limit for the secondary market 
                established pursuant to section 305(a)(2) of 
                the Federal Home Loan Mortgage Corporation Act, 
                so as to require the imposition or continuation 
                of a private mortgage insurance requirement 
                beyond the terms specified in subsection (a) or 
                (b) of section 3; or
                  (B) as determined by the mortgagee in the 
                case of any other mortgage, except that 
                termination shall occur--
                          (i) with respect to a fixed rate 
                        mortgage, on the date on which the 
                        principal balance of the mortgage, 
                        based solely on the initial 
                        amortization schedule for that 
                        mortgage, and irrespective of the 
                        outstanding balance for that mortgage 
                        on that date, is first scheduled to 
                        reach 77 percent of the original value 
                        of the property securing the loan; and
                          (ii) with respect to an adjustable 
                        rate mortgage, on the date on which the 
                        principal balance of the mortgage, 
                        based solely on [amortization 
                        schedules] the amortization schedule 
                        then in effect for that mortgage, and 
                        irrespective of the outstanding balance 
                        for that mortgage on that date, is 
                        first scheduled to reach 77 percent of 
                        the original value of the property 
                        securing the loan.
          (2) Termination at midpoint.--A private mortgage 
        insurance requirement in connection with a residential 
        [mortgage or] mortgage transaction described in 
        paragraph (1) shall terminate in accordance with 
        subsection (c).
          (3) Rule of construction.--Nothing in this subsection 
        may be construed to require a [mortgage or] residential 
        mortgage or residential mortgage transaction described 
        in paragraph (1)(A) to be purchased by the Federal 
        National Mortgage Association or the Federal Home Loan 
        Mortgage Corporation.

           *       *       *       *       *       *       *

  (h) Accrued Obligation for Premium Payments.--The 
cancellation or termination under this section of the private 
mortgage insurance of a mortgagor shall not affect the rights 
of any mortgagee, servicer, or mortgage insurer to enforce any 
obligation of such mortgagor for premium payments accrued prior 
to the date on which such cancellation or termination occurred.

SEC. 4. DISCLOSURE REQUIREMENTS.

  (a) Disclosures for New Mortgages at Time of Transaction.--
          (1) Disclosures for non-exempted transactions.--In 
        any case in which private mortgage insurance is 
        required in connection with a residential [mortgage or] 
        mortgage transaction (other than a [mortgage or] 
        residential mortgage transaction described in section 
        [3(f)(1)] 3(g)(1)), at the time at which the 
        transaction is consummated, the mortgagee shall provide 
        to the mortgagor--
                  (A) if the transaction relates to a fixed 
                rate mortgage--
                          (i) a written initial amortization 
                        schedule; and
                          (ii) written notice--
                                  (I) * * *

           *       *       *       *       *       *       *

                                  (IV) that there are 
                                exemptions to the right to 
                                cancellation and automatic 
                                termination of a requirement 
                                for private mortgage insurance 
                                in accordance with section 
                                [3(f)] 3(g) of this Act, and 
                                whether such an exemption 
                                applies at that time to that 
                                transaction; and
                  (B) if the transaction relates to an 
                adjustable rate mortgage, a written notice 
                that--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) there are exemptions to the 
                        right of cancellation and automatic 
                        termination of a requirement for 
                        private mortgage insurance in 
                        accordance with section [3(f)] 3(g) of 
                        this Act, and whether such an exemption 
                        applies at that time to that 
                        transaction.
          (2) Disclosures for excepted transactions.--In the 
        case of a [mortgage or] residential mortgage 
        transaction described in section [3(f)(1)] 3(g)(1), at 
        the time at which the transaction is consummated, the 
        mortgagee shall provide written notice to the mortgagor 
        that in no case may private mortgage insurance be 
        required beyond the date that is the midpoint of the 
        amortization period of the loan, if the mortgagor is 
        current on payments required by the terms of the 
        residential mortgage.

           *       *       *       *       *       *       *

  (c) Inclusion in Other Annual Notices.--The information and 
disclosures required under subsection (b) and [paragraphs 
(1)(B) and (3) of subsection (a)] subsection (a)(3) may be 
provided on the annual disclosure relating to the escrow 
account made as required under the Real Estate Settlement 
Procedures Act of 1974, or as part of the annual disclosure of 
interest payments made pursuant to Internal Revenue Service 
regulations, and on a form promulgated by the Internal Revenue 
Service for that purpose.
  (d) Standardized Forms.--The mortgagee or servicer may use 
standardized forms for the provision of disclosures required 
under this section, which disclosures shall relate to the 
mortgagor's rights under this Act.

           *       *       *       *       *       *       *

SEC. 6. DISCLOSURE REQUIREMENTS FOR LENDER PAID MORTGAGE INSURANCE.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Notices to Mortgagor.--In the case of lender paid 
mortgage insurance that is required in connection with [a 
residential mortgage or] a residential mortgage transaction--
          (1) not later than the date on which a loan 
        commitment is made for the residential mortgage 
        transaction, the prospective mortgagee shall provide to 
        the prospective mortgagor a written notice--
                  (A) * * *
                  (B) that lender paid mortgage insurance--
                          (i) usually results in a residential 
                        mortgage having a higher interest rate 
                        than it would in the case of borrower 
                        paid mortgage insurance; and
                          (ii) terminates only when the 
                        residential mortgage is refinanced 
                        (under the meaning given such term in 
                        the regulations issued by the Board of 
                        Governors of the Federal Reserve System 
                        to carry out the Truth in Lending Act 
                        (15 U.S.C. 1601 et seq.)), paid off, or 
                        otherwise terminated; and
          (2) not later than 30 days after the termination date 
        that would apply in the case of borrower paid mortgage 
        insurance, the servicer shall provide to the mortgagor 
        a written notice indicating that the mortgagor may wish 
        to review financing options that could eliminate the 
        requirement for private mortgage insurance in 
        connection with the residential mortgage transaction.
  (d) Standard Forms.--The servicer of a residential mortgage 
transaction may develop and use a standardized form or forms 
for the provision of notices to the mortgagor, as required 
under subsection (c).

           *       *       *       *       *       *       *

                              ----------                              

HOUSING ACT OF 1949

           *       *       *       *       *       *       *

TITLE V--FARM HOUSING

           *       *       *       *       *       *       *

 other special loans and grants for minor improvements to farm housing 
                             and buildings

    Sec. 504. (a) The Secretary may make a loan, grant, or 
combined loan and grant to an eligible very low-income 
applicant in order to improve or modernize a rural dwelling, to 
make the dwelling safer or more sanitary, or to remove hazards. 
The Secretary may make a loan or grant under this subsection to 
the applicant to cover the cost of any or all repairs, 
improvements, or additions such as repairing roofs, providing 
sanitary waste facilities, providing a convenient and sanitary 
water supply, repairing or providing structural supports, or 
making similar repairs, additions, improvements, including all 
preliminary and installation costs in obtaining central water 
and sewer service. The maximum amount of a grant, a loan, or a 
loan and grant shall not exceed such limitations as the 
Secretary determines to be appropriate. Any portion of the sums 
advanced to the borrower treated as a loan shall be secured and 
be repayable within twenty years in accordance with the 
principles and conditions set forth in this title, except that 
a loan for less than [$2,500] $7,500 need be evidenced only by 
a promissory note. Sums made available by grant may be made 
subject to the conditions set forth in this title for the 
protection of the Government with respect to contributions made 
on loans made by the Secretary.

           *       *       *       *       *       *       *

insurance of loans for the provision of housing and related facilities 
                        for domestic farm labor

    Sec. 514. (a) The Secretary is authorized to insure and 
make commitments to insure loans made by lenders other than the 
United States to the owner of any farm or any association of 
farmers for the purpose of providing housing and related 
facilities for domestic farm labor, or to any Indian tribe for 
such purpose, or to any State (or political subdivision 
thereof), or any broad-based public or private nonprofit 
organization, or any [nonprofit limited partnership] limited 
partnership in which the general partner is a nonprofit entity, 
or any nonprofit organization of farm workers incorporated 
within the State for the purpose of providing housing and 
related facilities for domestic farm labor any place within the 
State where a need exists. All such loans shall be made in 
accordance with terms and conditions substantially identical 
with those specified in section 502, except that--
          (1) * * *

           *       *       *       *       *       *       *

  [(j) Equity Skimming Penalty.--Whoever, as an owner, agent, 
or manger, or who is otherwise in custody, control, or 
possession of property that is security for a loan made or 
insured under this section willfully uses, or authorizes the 
use, of any part of the rents, assets, proceeds, income, or 
other funds derived from such property, for any purpose other 
than to meet actual or necessary expenses of the property, or 
for any other purpose not authorized by this title or the 
regulations adopted pursuant to this title, shall be fined not 
more than $250,000 or imprisoned not more than 5 years, or 
both.]

direct and insured loans to provide housing and related facilities for 
              elderly persons and families in rural areas

    Sec. 515. (a) * * *

           *       *       *       *       *       *       *

  [(z) Equity Skimming Penalty.--Whoever, as an owner, agent, 
or manager, or who is otherwise in custody, control, or 
possession of property that is security for a loan made or 
insured under this section willfully uses, or authorizes the 
use, of any part of the rents, assets, proceeds, income, or 
other fund derived from such property, for any purpose other 
than to meet actual or necessary expenses of the property, or 
for any other purpose not authorized by this title or the 
regulations adopted pursuant to this title, shall be fined not 
more than $250,000 or imprisoned not more than 5 years, or 
both.]
  (z) Accounting and Recordkeeping Requirements.--
          (1) Accounting standards.--The Secretary shall 
        require that borrowers in programs authorized by this 
        section maintain accounting records in accordance with 
        generally accepted accounting principles for all 
        projects that receive funds from loans made or 
        guaranteed by the Secretary under this section.
          (2) Record retention requirements.--The Secretary 
        shall require that borrowers in programs authorized by 
        this section retain for a period of not less than 6 
        years and make available to the Secretary in a manner 
        determined by the Secretary, all records required to be 
        maintained under this subsection and other records 
        identified by the Secretary in applicable regulations.
  (aa) Double Damages for Unauthorized Use of Housing Projects 
Assets and Income.--
          (1) Action to recover assets or income.--
                  (A) In general.--The Secretary may request 
                the Attorney General to bring an action in a 
                United States district court to recover any 
                assets or income used by any person in 
                violation of the provisions of a loan made or 
                guaranteed by the Secretary under this section 
                or in violation of any applicable statute or 
                regulation.
                  (B) Improper documentation.--For purposes of 
                this subsection, a use of assets or income in 
                violation of the applicable loan, loan 
                guarantee, statute, or regulation shall include 
                any use for which the documentation in the 
                books and accounts does not establish that the 
                use was made for a reasonable operating expense 
                or necessary repair of the project or for which 
                the documentation has not been maintained in 
                accordance with the requirements of the 
                Secretary and in reasonable condition for 
                proper audit.
                  (C) Definition.--For the purposes of this 
                subsection, the term ``person'' means--
                          (i) any individual or entity that 
                        borrows funds in accordance with 
                        programs authorized by this section;
                          (ii) any individual or entity holding 
                        25 percent or more interest of any 
                        entity that borrows funds in accordance 
                        with programs authorized by this 
                        section; and
                          (iii) any officer, director, or 
                        partner of an entity that borrows funds 
                        in accordance with programs authorized 
                        by this section.
          (2) Amount recoverable.--
                  (A) In general.--In any judgment favorable to 
                the United States entered under this 
                subsection, the Attorney General may recover 
                double the value of the assets and income of 
                the project that the court determines to have 
                been used in violation of the provisions of a 
                loan made or guaranteed by the Secretary under 
                this section or any applicable statute or 
                regulation, plus all costs related to the 
                action, including reasonable attorney and 
                auditing fees.
                  (B) Application of recovered funds.--
                Notwithstanding any other provision of law, the 
                Secretary may use amounts recovered under this 
                subsection for activities authorized under this 
                section and such funds shall remain available 
                for such use until expended.
          (3) Time limitation.--Notwithstanding any other 
        provision of law, an action under this subsection may 
        be commenced at any time during the 6-year period 
        beginning on the date that the Secretary discovered or 
        should have discovered the violation of the provisions 
        of this section or any related statutes or regulations.
          (4) Continued availability of other remedies.--The 
        remedy provided in this subsection is in addition to 
        and not in substitution of any other remedies available 
        to the Secretary or the United States.

           *       *       *       *       *       *       *

                        definition of rural area

    Sec. 520. As used in this title, the terms ``rural'' and 
``rural area'' mean any open country, or any place, town, 
village, or city which is not (except in the cases of Pajaro, 
in the State of California, and Guadalupe, in the State of 
Arizona) part of or associated with an urban area and which (1) 
has a population not in excess of 2,500 inhabitants, or (2) has 
a population in excess of 2,500 but not in excess of 10,000 if 
it is rural in character, or (3) has a population in excess of 
10,000 but not in excess of 20,000, and (A) is not contained 
within a standard metropolitan statistical area, and (B) has a 
serious lack of mortgage credit for lower and moderate-income 
families, as determined by the Secretary and the Secretary of 
Housing and Urban Development. For purposes of this title, any 
area classifed as ``rural'' or a ``rural area'' prior to 
October 1, 1990, and determined not to be ``rural'' or a 
``rural area'' as a result of data received from or after the 
1990 decennial census shall continue to be so classified until 
the receipt of data from the decennial census in the year 
[2000] 2010, if such area has a population in excess of 10,000 
but not in excess of 25,000, is rural in character, and has a 
serious lack of mortgage credit for lower and moderate-income 
families. Notwithstanding any other provision of this section, 
the city of Plainview, Texas, shall be considered a rural area 
for purposes of this title, and the city of Altus, 
Oklahoma,shall be considered a rural area for purposes of this title 
until the receipt of data from the decennial census in the year 2000.

 loans to provide occupant-owned, rental, and cooperative housing for 
             low- and moderate-income persons and families

    Sec. 521. (a)(1) * * *

           *       *       *       *       *       *       *

  (5) Operating assistance for migrant farmworker projects.--
          (A) Authority.--In the case of housing (and related 
        facilities) for migrant farmworkers provided or 
        assisted with a loan under section 514 or a grant under 
        section 516, the Secretary may, at the request of the 
        owner of the [project] tenant or unit, use amounts 
        provided for rental assistance payments under paragraph 
        (2) to provide assistance for the costs of operating 
        the project. Any project assisted under this paragraph 
        may not receive rental assistance under paragraph (2).

           *       *       *       *       *       *       *

SEC. 538. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN RURAL 
                    AREAS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Eligible Borrowers.--A loan guaranteed under this section 
may be made to a nonprofit organization, an agency or body of 
any State government or political subdivision thereof, an 
Indian organization, or a private entity.
  (f) Loan Terms.--Each loan guaranteed pursuant to this 
section shall--
          [(1) provide for complete amortization by periodic 
        payments to be made for a term not to exceed 40 years;]
          (1) be made for a period of not less than 25 nor 
        greater than 40 years from the date the loan was made 
        and may provide for amortization of the loan over a 
        period of not to exceed 40 years with a final payment 
        of the balance due at the end of the loan term;

           *       *       *       *       *       *       *

  (i) Payment Under Guarantee.--
          (1) * * *
          (2) Foreclosure.--After receiving notice under 
        paragraph (1) and providing written notice of action 
        under this paragraph to the Secretary, the holder of 
        the guarantee certificate for the loan may initiate 
        foreclosure proceedings for the loan in a court of 
        competent jurisdiction, in accordance with regulations 
        issued by the Secretary, to obtain possession of the 
        security property. After the court issues a final order 
        authorizing foreclosure on the property, the holder of 
        the certificate shall be entitled to payment by the 
        Secretary under the guarantee (in the amount provided 
        under subsection (b)) upon [(A) conveyance to the 
        Secretary of title to the security property, (B) 
        submission to the Secretary of a claim for payment 
        under the guarantee, and (C) assignment] (A) submission 
        to the Secretary of a claim for payment under the 
        guarantee, and (B) assignment to the Secretary of all 
        the claims of the holder of the guarantee against the 
        borrower or others arising out of the loan transaction 
        or foreclosure proceedings, except claims released with 
        the consent of the Secretary.

           *       *       *       *       *       *       *

  [(l) Nonassumption.--The borrower under a loan that is 
guaranteed under this section and under which any portion of 
the principal obligation or interest remains outstanding may 
not be relieved of liability with respect to the loan, 
notwithstanding the transfer of property for which the loan was 
made.]
  [(m)] (l) Geographical Targeting.--
          (1) Study.--The Secretary shall provide for an 
        independent entity to conduct a study to determine the 
        extent to which borrowers in the United States will 
        utilize loan guarantees under this section, the rural 
        areas in the United States in which borrowers can best 
        utilize and most need loans guaranteed under this 
        section, and the rural areas in the United States in 
        which housing of the type eligible for a loan guarantee 
        under this section is most needed by low- and moderate-
        income families. The Secretary shall require the 
        independent entity conducting the study to submit a 
        report to the Secretary and to the Congress describing 
        the results of the study not later than the expiration 
        of the 90-day period beginning on the date of the 
        enactment of the Homesteading and Housing Opportunity 
        Program Extension Act of 1996.
          (2) Targeting.--In providing loan guarantees under 
        this section, the Secretary shall establish standards 
        to target and give priority to rural areas in which 
        borrowers can best utilize and most need loans 
        guaranteed under this section, as determined by the 
        Secretary based on the results of the study under 
        paragraph (1) and any other information the Secretary 
        considers appropriate.
  [(n)] (m) Inapplicability of Credit-Elsewhere Test.--Section 
501(c) shall not apply to guarantees, or loans guaranteed, 
under this section.
  [(o)] (n) Tenant Protections.--The Secretary shall establish 
standards for the treatment of tenants of housing developed 
using amounts from a loan guaranteed under this section, which 
shall incorporate, to the extent applicable, existing standards 
applicable to tenants of housing developed with loans made 
under section 515. Such standards shall include standards for 
fair housing and equal opportunity, lease and grievance 
procedures, and tenant appeals of adverse actions.
  [(p)] (o) Housing Standards.--The standards established under 
section 515(m) for housing and related facilities assisted 
under section 515 shall apply to housing and related facilities 
the development costs of which are financed in whole or in part 
with a loan guaranteed under this section.
  [(q)] (p) Limitation on Commitments To Guarantee Loans.--
          (1) Requirement of appropriations for cost subsidy.--
        The authority of the Secretary to enter into 
        commitments to guarantee loans under this section, and 
        to guarantee loans,shall be effective for each fiscal 
year only to the extent that appropriations of budget authority to 
cover the costs (as such term is defined in section 502 of the 
Congressional Budget Act of 1974) of the guarantees are made in advance 
for such fiscal year.
          (2) Annual limitation on amount of loan guarantee.--
        In each fiscal year, the Secretary may enter into 
        commitments to guarantee loans under this section only 
        to the extent that the costs of the guarantees entered 
        into in such fiscal year do not exceed such amount as 
        may be provided in appropriation Acts for such fiscal 
        year.
  [(r)] (q) Report.--
          (1) In general.--The Secretary shall submit a report 
        to the Congress, not later than the expiration of the 
        2-year period beginning on the date of the enactment of 
        the Housing Opportunity Program Extension Act of 1996, 
        describing the program under this section for 
        guaranteeing loans.
          (2) Contents.--The report shall--
                  (A) describe the types of borrowers providing 
                housing with loans guaranteed under this 
                section, the areas served by the housing 
                provided and the geographical distribution of 
                the housing, the levels of income of the 
                residents of the housing, the number of 
                dwelling units provided, the extent to which 
                borrowers under such loans have obtained other 
                financial assistance for development costs of 
                housing provided with the loans, and the extent 
                to which borrowers under such loans have used 
                low-income housing tax credits provided under 
                section 42 of the Internal Revenue Code of 1986 
                in connection with the housing provided with 
                the loans;
                  (B) analyze the financial viability of the 
                housing provided with loans guaranteed under 
                this section and the need for project-based 
                rental assistance for such housing;
                  (C) include any recommendations of the 
                Secretary for expanding or improving the 
                program under this section for guaranteeing 
                loans; and
                  (D) include any other information regarding 
                the program for guaranteeing loans under this 
                section that the Secretary considers 
                appropriate.
  [(s)] (r) Definitions.--For purposes of this section, the 
following definitions shall apply:
          (1) The term ``development cost'' has the meaning 
        given the term in section 515(e).
          (2) The term ``eligible lender'' means a lender 
        determined by the Secretary to meet the requirements of 
        subparagraph (A), (B), (C), or (D) of subsection 
        (e)(1).
          (3) The terms ``housing'' and ``related facilities'' 
        have the meanings given such terms in section 515(e).
          (4) Indian organization.--The term ``Indian 
        organization'' means the governing body of an Indian 
        tribe, band, group, pueblo, or community, including 
        native villages or native groups, as defined by the 
        Alaska Claims Settlement Act (43 U.S.C. 1601 et seq.), 
        (including corporations organized by the Kenai, Juneau, 
        Sitka, and Kodiak) which is eligible for services from 
        the Bureau of Indian Affairs or an entity established 
        or recognized by the governing body for the purpose of 
        financing economic development.
  [(t)](s) Authorization of Appropriations.--There are 
authorized to be appropriated for each fiscal year for costs 
(as such term is defined in section 502 of the Congressional 
Budget Act of 1974) of loan guarantees made under this section 
such sums as may be necessary for such fiscal year to provide 
guarantees under this section for eligible loans having an 
aggregate principal amount of $500,000,000.
  [(u)] (t) Tax-Exempt Financing.--The Secretary may not deny a 
guarantee under this section on the basis that the interest on 
the loan or on an obligation supporting the loan for which a 
guarantee is sought is exempt from inclusion in gross income 
for purposes of chapter I of the Internal Revenue Code of 1986.
  (u) Fee Authority.--
          (1) In general.--Any amounts collected by the 
        Secretary pursuant to the fees charged to lenders for 
        loan guarantees issued under this section shall be used 
        to offset costs (as defined by section 502 of the 
        Congressional Budget Act of 1974 (2 U.S.C. 661a)) of 
        loan guarantees made under this section.
          (2) Excess funds.--Any fees described in paragraph 
        (1) collected in excess of the amount required in 
        paragraph (1) during a fiscal year, shall be available 
        to the Secretary, without further appropriation and 
        without fiscal year limitation, for use by the 
        Secretary for costs of administering (including 
        monitoring) program activities authorized pursuant to 
        this section and shall be in addition to other funds 
        made available for this purpose.
  (v) Defaults of Loans Secured by Reservation Lands.--In the 
event of a default involving a loan to an Indian tribe or 
tribal corporation made under this section which is secured by 
an interest in land within such tribe's reservation (as 
determined by the Secretary of the Interior), including a 
community in Alaska incorporated by the Secretary of the 
Interior pursuant to the Indian Reorganization Act (25 U.S.C. 
461 et seq.), the lender shall only pursue liquidation after 
offering to transfer the account to an eligible tribal member, 
the tribe, or the Indian housing authority serving the tribe. 
If the lender subsequently proceeds to liquidate the account, 
the lender shall not sell, transfer, or otherwise dispose of or 
alienate the property except to one of the entities described 
in the preceding sentence.

           *       *       *       *       *       *       *

SEC. 543. ENFORCEMENT PROVISIONS.

  (a) Equity Skimming.--
          (1) Criminal penalty.--Whoever, as an owner, agent, 
        employee, or manager, or is otherwise in custody, 
        control, or possession of property that is security for 
        a loan made or guaranteed under this title, willfully 
        uses, or authorizes the use, of any part of the rents, 
        assets, proceeds, income, or other funds derived from 
        such property, for any purpose other than to meet 
        actual, reasonable, and necessary expenses of the 
        property, or for any other purpose not authorized by 
        this title or the regulations adopted pursuant to this 
        title, shall be fined under title 18, United States 
        Code, or imprisoned not more than 5 years, or both.
          (2) Civil sanctions.--An entity or individual who as 
        an owner, operator, employee, or manager, or who acts 
        as an agent for a property that is security for a loan 
        made or guaranteed under this title where any part of 
        the rents, assets, proceeds, income, or other funds 
        derived from such property are used for any purpose 
        other than to meet actual, reasonable, and necessary 
        expenses of the property, or for any other purpose not 
        authorized by this title or the regulations adopted 
        pursuant to this title, shall be subject to a fine of 
        not more than $25,000 per violation. The sanctions 
        provided in this paragraph may be imposed in addition 
        to any other civil sanctions or civil monetary 
        penalties authorized by law.
  (b) Civil Monetary Penalties.--
          (1) In general.--The Secretary may, after notice and 
        opportunity for a hearing, impose a civil monetary 
        penalty in accordance with this subsection against any 
        individual or entity, including its owners, officers, 
        directors, general partners, limited partners, or 
        employees, who knowingly and materially violate, or 
        participate in the violation of, the provisions of this 
        title, the regulations issued by the Secretary pursuant 
        to this title, or agreements made in accordance with 
        this title, by--
                  (A) submitting information to the Secretary 
                that is false;
                  (B) providing the Secretary with false 
                certifications;
                  (C) failing to submit information requested 
                by the Secretary in a timely manner;
                  (D) failing to maintain the property subject 
                to loans made or guaranteed under this title in 
                good repair and condition, as determined by the 
                Secretary;
                  (E) failing to provide management for a 
                project which received a loan made or 
                guaranteed under this title that is acceptable 
                to the Secretary; or
                  (F) failing to comply with the provisions of 
                applicable civil rights statutes and 
                regulations.
          (2) Conditions for renewal or extension.--The 
        Secretary may require that expiring loan or assistance 
        agreements entered into under this title shall not be 
        renewed or extended unless the owner executes an 
        agreement to comply with additional conditions 
        prescribed by the Secretary, or executes a new loan or 
        assistance agreement in the form prescribed by the 
        Secretary.
          (3) Amount.--
                  (A) In general.--The amount of a civil 
                monetary penalty imposed under this subsection 
                shall not exceed the greater of--
                          (i) twice the damages the Department 
                        of Agriculture, the guaranteed lender, 
                        or the project that is secured for a 
                        loan under this section suffered or 
                        would have suffered as a result of the 
                        violation; or
                          (ii) $50,000 per violation.
                  (B) Determination.--In determining the amount 
                of a civil monetary penalty under this 
                subsection, the Secretary shall take into 
                consideration--
                          (i) the gravity of the offense;
                          (ii) any history of prior offenses by 
                        the violator (including offenses 
                        occurring prior to the enactment of 
                        this section);
                          (iii) the ability of the violator to 
                        pay the penalty;
                          (iv) any injury to tenants;
                          (v) any injury to the public;
                          (vi) any benefits received by the 
                        violator as a result of the violation;
                          (vii) deterrence of future 
                        violations; and
                          (viii) such other factors as the 
                        Secretary may establish by regulation.
          (4) Payment of penalties.--No payment of a penalty 
        assessed under this section may be made from funds 
        provided under this title or from funds of a project 
        which serve as security for a loan made or guaranteed 
        under this title.
          (5) Remedies for noncompliance.--
                  (A) Judicial intervention.--If a person or 
                entity fails to comply with a final 
                determination by the Secretary imposing a civil 
                monetary penalty under this subsection, the 
                Secretary may request the Attorney General of 
                the United States to bring an action in an 
                appropriate United States district court to 
                obtain a monetary judgment against such 
                individual or entity and such other relief as 
                may be available. The monetary judgment may, in 
                the court's discretion, include the attorney's 
                fees and other expenses incurred by the United 
                States in connection with the action.
                  (B) Reviewability of determination.--In an 
                action under this paragraph, the validity and 
                appropriateness of a determination by the 
                Secretary imposing the penalty shall not be 
                subject to review.
                              ----------                              

TITLE 18, UNITED STATES CODE

           *       *       *       *       *       *       *

PART I--CRIMES

           *       *       *       *       *       *       *

CHAPTER 73--OBSTRUCTION OF JUSTICE

           *       *       *       *       *       *       *

Sec. 1516. Obstruction of Federal audit

  (a) Whoever, with intent to deceive or defraud the United 
States, endeavors to influence, obstruct, or impede a Federal 
auditor in the performance of official duties relating to a 
person receiving in excess of $100,000, directly or indirectly, 
from the United States in any 1 year period under a contract or 
subcontract, or relating to any property that is security for a 
mortgage note that is insured, guaranteed, acquired, or held by 
the Secretary of Housing and Urban Development pursuant to any 
Act administered by the Secretary, or relating to any property 
that is security for a loan that is made or guaranteed under 
title V of the Housing Act of 1949, shall be fined under this 
title, or imprisoned not more than 5 years, or both.

           *       *       *       *       *       *       *

CHAPTER 95--RACKETEERING

           *       *       *       *       *       *       *

Sec. 1956. Laundering of monetary instruments

  (a) * * *

           *       *       *       *       *       *       *

  (c) As used in this section--
          (1) * * *

           *       *       *       *       *       *       *

          (7) the term ``specified unlawful activity'' means--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) an offense under section 32 (relating to 
                the destruction of aircraft), section 37 
                (relating to violence at international 
                airports), section 115 (relating to 
                influencing, impeding, or retaliating against a 
                Federal official by threatening or injuring a 
                family member), section 152 (relating to 
                concealment of assets; false oaths and claims; 
                bribery), section 215 (relating to commissions 
                or gifts for procuring loans), section 351 
                (relating to congressional or Cabinet officer 
                assassination), any of sections 500 through 503 
                (relating to certain counterfeiting offenses), 
                section 513 (relating to securities of States 
                and private entities), section 542 (relating to 
                entry of goods by means of false statements), 
                section 545 (relating to smuggling goods into 
                the United States), section 549 (relating to 
                removing goods from Customs custody), section 
                641 (relating to public money, property, or 
                records), section 656 (relating to theft, 
                embezzlement, or misapplication by bank officer 
                or employee), section 657 (relating to lending, 
                credit, and insurance institutions), section 
                658 (relating to property mortgaged or pledged 
                to farm credit agencies), section 666 (relating 
                to theft or bribery concerning programs 
                receiving Federal funds), section 793, 794, or 
                798 (relating to espionage), section 831 
                (relating to prohibited transactions involving 
                nuclear materials), section 844 (f) or (i) 
                (relating to destruction by explosives or fire 
                of Government property or property affecting 
                interstate or foreign commerce), section 875 
                (relating to interstate communications), 
                section 956 (relating to conspiracy to kill, 
                kidnap, maim, or injure certain property in a 
                foreign country), section 1005 (relating to 
                fraudulent bank entries), 1006 (relating to 
                fraudulent Federal credit institution entries), 
                1007 (relating to Federal Deposit Insurance 
                transactions), 1014 (relating to fraudulent 
                loan or credit applications), 1032 (relating to 
                concealment of assets from conservator, 
                receiver, or liquidating agent of financial 
                institution), section 1111 (relating to 
                murder), section 1114 (relating to murder of 
                United States law enforcement officials), 
                section 1116 (relating to murder of foreign 
                officials, official guests, or internationally 
                protected persons), section 1201 (relating to 
                kidnapping), section 1203 (relating to hostage 
                taking), section 1361 (relating to willful 
                injury of Government property), section 1363 
                (relating to destruction of property within the 
                special maritime and territorial jurisdiction), 
                section 1708 (theft from the mail), section 
                1751 (relating to Presidential assassination), 
                section 2113 or 2114 (relating to bank and 
                postal robbery and theft), section 2280 
                (relating to violence against maritime 
                navigation), section 2281 (relating to violence 
                against maritime fixed platforms), or section 
                2319 (relating to copyright infringement), 
                section 2320 (relating to trafficking in 
                counterfeit goods and services),, section 2332 
                (relating to terrorist acts abroad against 
                United States nationals), section 2332a 
                (relating to use of weapons of mass 
                destruction), section 2332b (relating to 
                international terrorist acts transcending 
                national boundaries), or section 2339A 
                (relating to providing material support to 
                terrorists) of this title, section 46502 of 
                title 49, United States Code,, a felony 
                violation of the Chemical Diversion and 
                Trafficking Act of 1988 (relating to precursor 
                and essential chemicals), section 590 of the 
                Tariff Act of 1930 (19 U.S.C. 1590) (relating 
                to aviation smuggling), section 422 of the 
                Controlled Substances Act (relating to 
                transportation of drug paraphernalia), section 
                38(c) (relating to criminal violations) of the 
                Arms Export Control Act, section 11 (relating 
                to violations) of the Export Administration Act 
                of 1979, section 206 (relating to penalties) of 
                the International Emergency Economic Powers 
                Act, section 16 (relating to offenses and 
                punishment) of the Trading with the Enemy Act, 
                any felony violation of section 15 of the Food 
                Stamp Act of 1977 (relating to food stamp 
                fraud) involving a quantity of coupons having a 
                value of not less than $5,000, any violation of 
                section 543(a)(1) of the Housing Act of 1949 
                (relating to equity skimming), or any felony 
                violation of the Foreign Corrupt Practices Act; 
                or
                              ----------                              

NATIONAL MANUFACTURED HOUSING CONSTRUCTION AND SAFETY STANDARDS ACT OF 
                                  1974

     TITLE VI--MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS

                              short title

    Sec. 601. This title may be cited as the ``National 
Manufactured Housing Construction and Safety Standards Act of 
1974''.

                         [statement of purpose

    [Sec. 602. The Congress declares that the purposes of this 
title are to reduce the number of personal injuries and deaths 
and the amount of insurance costs and property damage resulting 
from manufactured home accidents and to improve the quality and 
durability of manufactured homes. Therefore, the Congress 
determines that it is necessary to establish Federal 
construction and safety standards for manufactured homes and to 
authorize manufactured home safety research and development.]

                         findings and purposes

  Sec. 602. (a) Findings.--The Congress finds that--
          (1) manufactured housing plays a vital role in 
        meeting the housing needs of the Nation; and
          (2) manufactured homes provide a significant resource 
        for affordable homeownership and rental housing 
        accessible to all Americans.
  (b) Purposes.--The purposes of this title are--
          (1) to facilitate the acceptance of the quality, 
        durability, safety, and affordability of manufactured 
        housing within the Department of Housing and Urban 
        Development;
          (2) to facilitate the availability of affordable 
        manufactured homes and to increase homeownership for 
        all Americans;
          (3) to provide for the establishment of practical, 
        uniform, and, to the extent possible, performance-based 
        Federal construction standards;
          (4) to encourage innovative and cost-effective 
        construction techniques;
          (5) to protect owners of manufactured homes from 
        unreasonable risk of personal injury and property 
        damage;
          (6) to establish a balanced consensus process for the 
        development, revision, and interpretation of Federal 
        construction and safety standards for manufactured 
        homes and related regulations for the enforcement of 
        such standards;
          (7) to ensure uniform and effective enforcement of 
        Federal construction and safety standards for 
        manufactured homes; and
          (8) to ensure that the public interest in, and need 
        for, affordable manufactured housing is duly considered 
        in all determinations relating to the Federal standards 
        and their enforcement.

                              definitions

    Sec. 603. As used in this title, the term--
          (1) * * *
          (2) ``[dealer] retailer'' means any person engaged in 
        the sale, leasing, or distribution of new manufactured 
        homes primarily to persons who in good faith purchase 
        or lease a manufactured home for purposes other than 
        resale;

           *       *       *       *       *       *       *

          (12) ``State'' includes each of the several States, 
        the District of Columbia, the Commonwealth of Puerto 
        Rico, Guam, the Virigin Islands, the Canal Zone, and 
        American Samoa; [and]
          (13) ``United States district courts'' means the 
        Federal district courts of the United States and the 
        United States courts of the Commonwealth of Puerto 
        Rico, Guam, the Virgin Islands, the Canal Zone, and 
        American Samoa[.]; and
          (14) ``administering organization'' means the 
        recognized, voluntary, private sector, consensus 
        standards body with specific experience in developing 
        model residential building codes and standards 
        involving all disciplines regarding construction and 
        safety that administers the consensus standards 
        development process;
          (15) ``consensus committee'' means the committee 
        established under section 604(a)(3);
          (16) ``consensus standards development process'' 
        means the process by which additions, revisions, and 
        interpretations to the Federal manufactured home 
        construction and safety standards and enforcement 
        regulations shall be developed and recommended to the 
        Secretary by the consensus committee;
          (17) ``primary inspection agency'' means a State 
        agency or private organization that has been approved 
        by the Secretary to act as a design approval primary 
        inspection agency or a production inspection primary 
        inspection agency, or both;
          (18) ``design approval primary inspection agency'' 
        means a State agency or private organization that has 
        been approved by the Secretary to evaluate and either 
        approve or disapprove manufactured home designs and 
        quality control procedures;
          (19) ``production inspection primary inspection 
        agency'' means a State agency or private organization 
        that has been approved by the Secretary to evaluate the 
        ability of manufactured home manufacturing plants to 
        comply with approved quality control procedures and 
        with the Federal manufactured home construction and 
        safety standards promulgated hereunder;
          (20) ``installation standards'' means reasonable 
        specifications for the installation of a manufactured 
        home, at the place of occupancy, to ensure proper 
        siting, the joining of all sections of the home, and 
        the installation of stabilization, support, or 
        anchoring systems; and
          (21) ``monitoring''--
                  (A) means the process of periodic review of 
                the primary inspection agencies, by the 
                Secretary or by a State agency under an 
                approved State plan pursuant to section 623, in 
                accordance with regulations recommended by the 
                consensus committee and promulgated in 
                accordance with section 604(b), which process 
                shall be for the purpose of ensuring that the 
                primary inspection agencies are discharging 
                their duties under this title; and
                  (B) may include the periodic inspection of 
                retail locations for transit damage, label 
                tampering, and retailer compliance with this 
                title.

      federal manufactured home construction and safety standards

    Sec. 604. [(a) The Secretary, after consultation with the 
Consumer Product Safety Commission, shall establish by order 
appropriate Federal manufactured home construction and safety 
standards. Each such Federal manufactured home standard shall 
be reasonable and shall meet the highest standards of 
protection, taking into account existing State and local laws 
relating to manufactured home safety and construction.
    [(b) All orders issued under this section shall be issued 
after notice and an opportunity for interested persons to 
participate are provided in accordance with the provisions of 
section 553 of title 5, United States Code.]
    (a) Establishment.--
          (1) Authority.--The Secretary shall establish, by 
        order, appropriate Federal manufactured home 
        construction and safety standards, each of which--
                  (A) shall--
                          (i) be reasonable and practical;
                          (ii) meet high standards of 
                        protection consistent with the 
                        enumerated purposes of this title; and
                          (iii) where appropriate, be 
                        performance-based and objectively 
                        stated; and
                  (B) except as provided in subsection (b), 
                shall be established in accordance with the 
                consensus standards development process.
          (2) Consensus standards and regulatory development 
        process.--
                  (A) Initial agreement.--Not later than 180 
                days after the date of enactment of the 
                Manufactured Housing Improvement Act, the 
                Secretary shall enter into a contract with an 
                administering organization. The contractual 
                agreement shall--
                          (i) terminate on the date on which a 
                        contract is entered into under 
                        subparagraph (B); and
                          (ii) require the administering 
                        organization to--
                                  (I) appoint the initial 
                                members of the consensus 
                                committee under paragraph (3);
                                  (II) administer the consensus 
                                standards development process 
                                until the termination of that 
                                agreement; and
                                  (III) administer the 
                                consensus development and 
                                interpretation process for 
                                procedural and enforcement 
                                regulations and regulations 
                                specifying the permissible 
                                scope and conduct of monitoring 
                                until the termination of that 
                                agreement.
                  (B) Competitively procured contract.--Upon 
                the expiration of the 4-year period beginning 
                on the date on which all members of the 
                consensus committee are appointed under 
                paragraph (3), the Secretary shall, using 
                competitive procedures (as such term is defined 
                in section 4 of the Office of Federal 
                Procurement Policy Act), enter into a 
                competitively awarded contract with an 
                administering organization. The administering 
                organization shall administer the consensus 
                process for the development and interpretation 
                of the Federal standards, the procedural and 
                enforcement regulations and regulations 
                specifying the permissible scope and conduct of 
                monitoring in accordance with this title.
                  (C) Performance review.--The Secretary--
                          (i) shall periodically review the 
                        performance of the administering 
                        organization; and
                          (ii) may replace the administering 
                        organization with another qualified 
                        technical or building code 
                        organization, pursuant to competitive 
                        procedures, if the Secretary determines 
                        in writing that the administering 
                        organization is not fulfilling the 
                        terms of the agreement or contract to 
                        which the administering organization is 
                        subject or upon the expiration of the 
                        agreement or contract.
          (3) Consensus committee.--
                  (A) Purpose.--There is established a 
                committee to be known as the ``consensus 
                committee'', which shall, in accordance with 
                this title--
                          (i) provide periodic recommendations 
                        to the Secretary to adopt, revise, and 
                        interpret the Federal manufactured 
                        housing construction and safety 
                        standards in accordance with this 
                        subsection;
                          (ii) provide periodic recommendations 
                        to the Secretary to adopt, revise, and 
                        interpret the procedural and 
                        enforcement regulations, including 
                        regulations specifying the permissible 
                        scope and conduct of monitoring in 
                        accordance with this subsection; and
                          (iii) be organized and carry out its 
                        business in a manner that guarantees a 
                        fair opportunity for the expression and 
                        consideration of various positions and 
                        for public participation.
                  (B) Membership.--The consensus committee 
                shall be composed of--
                          (i) 21 voting members appointed, 
                        subject to approval by the Secretary, 
                        by the administering organization from 
                        among individuals who are qualified by 
                        background and experience to 
                        participate in the work of the 
                        consensus committee; and
                          (ii) 1 member appointed by the 
                        Secretary to represent the Secretary on 
                        the consensus committee, who shall be a 
                        nonvoting member.
                  (C) Disapproval.--The Secretary may 
                disapprove, in writing with the reasons set 
                forth, the appointment of an individual under 
                subparagraph (B)(i).
                  (D) Selection procedures and requirements.--
                Each member shall be appointed in accordance 
                with the selection procedures, which shall be 
                established by the Secretary and which shall be 
                based on the procedures for consensus 
                committees promulgated by the American National 
                Standards Institute (or successor 
                organization), to ensure equal representation 
                on the consensus committee of the following 
                interest categories:
                          (i) Producers.--7 producers or 
                        retailers of manufactured housing.
                          (ii) Users.--7 persons representing 
                        consumer interests, such as consumer 
                        organizations, recognized consumer 
                        leaders, and owners who are residents 
                        of manufactured homes.
                          (iii) General interest and public 
                        officials.--7 general interest and 
                        public official members.
                  (E) Balancing of interests.--
                          (i) In general.--In order to achieve 
                        a proper balance of interests on the 
                        consensus committee--
                                  (I) the administering 
                                organization in its 
                                appointments shall ensure that 
                                all directly and materially 
                                affected interests have the 
                                opportunity for fair and 
                                equitable participation without 
                                dominance by any single 
                                interest; and
                                  (II) the Secretary may reject 
                                the appointment of any 1 or 
                                more individuals in order to 
                                ensure that there is not 
                                dominance by any single 
                                interest.
                          (ii) Dominance defined.--In this 
                        subparagraph, the term ``dominance'' 
                        means a position or exercise of 
                        dominant authority, leadership, or 
                        influence by reason of superior 
                        leverage, strength, or representation.
                  (F) Additional qualifications.--
                          (i) Financial independence.--No 
                        individual appointed under subparagraph 
                        (D)(ii) shall have, and 3 of 
                        individuals appointed under 
                        subparagraph (D)(iii) shall not have--
                                  (I) a significant financial 
                                interest in any segment of the 
                                manufactured housing industry; 
                                or
                                  (II) a significant 
                                relationship to any person 
                                engaged in the manufactured 
                                housing industry.
                          (ii) Post-employment ban.--An 
                        individual appointed under clause (ii) 
                        or (iii) of subparagraph (D) shall be 
                        subject to a ban disallowing 
                        compensation from the manufactured 
                        housing industry during the period of, 
                        and for the 1-year period after, 
                        membership of that individual on the 
                        consensus committee.
                  (G) Meetings.--
                          (i) Notice; open to public.--The 
                        consensus committee shall provide 
                        advance notice of each meeting of the 
                        consensus committee to the Secretary 
                        and publish advance notice of each such 
                        meeting in the Federal Register. All 
                        meetings of the consensus committee 
                        shall be open to the public.
                          (ii) Reimbursement.--Members of the 
                        consensus committee in attendance at 
                        the meetings shall be reimbursed for 
                        their actual expenses as authorized by 
                        section 5703 of title 5, United States 
                        Code, for persons employed 
                        intermittently in Government service.
                  (H) Inapplicability of other laws.--
                          (i) Advisory committee act.--The 
                        consensus committee shall not be 
                        considered to be an advisory committee 
                        for purposes of the Federal Advisory 
                        Committee Act.
                          (ii) Title 18.--The members of the 
                        consensus committee shall not be 
                        subject to section 203, 205, 207, or 
                        208 of title 18, United States Code, to 
                        the extent of their proper 
                        participation as members of the 
                        consensus committee.
                          (iii) Ethics in government act of 
                        1978.--The Ethics in Government Act of 
                        1978 shall not apply to members of the 
                        consensus committee to the extent of 
                        their proper participation as members 
                        of the consensus committee.
                  (I) Administration.--The consensus committee 
                and the administering organization shall--
                          (i) operate in conformance with the 
                        procedures established by the American 
                        National Standards Institute for the 
                        development and coordination of 
                        American National Standards; and
                          (ii) apply to the American National 
                        Standards Institute and take such other 
                        actions as may be necessary to obtain 
                        accreditation from the American 
                        National Standards Institute.
                  (J) Staff.--The administering organization 
                shall, upon the request of the consensus 
                committee, provide reasonable staff resources 
                to the consensus committee. Upon a showing of 
                need, the Secretary shall furnish technical 
                support to any of the various interest 
                categories on the consensus committee.
                  (K) Date of initial appointments.--The 
                initial appointments of all of the members of 
                the consensus committee shall be completed not 
                later than 90 days after the date on which an 
                administration agreement under paragraph (2)(A) 
                is completed with the administering 
                organization.
          (4) Revisions of standards.--
                  (A) In general.--Beginning on the date on 
                which all members of the consensus committee 
                are appointed under paragraph (3), the 
                consensus committee shall, not less than once 
                during each 2-year period--
                          (i) consider revisions to the Federal 
                        manufactured home construction and 
                        safety standards; and
                          (ii) submit proposed revised 
                        standards and regulations, if approved 
                        in a vote of the consensus committee by 
                        two-thirds of the members, to the 
                        Secretary in the form of a proposed 
                        rule, including an economic analysis.
                  (B) Publication of proposed revised 
                standards.--
                          (i) Publication by secretary.--The 
                        consensus committee shall provide a 
                        proposed revised standard under 
                        subparagraph (A)(ii) to the Secretary 
                        who shall, not later than 30 days after 
                        receipt, publish such proposed revised 
                        standard in the Federal Register for 
                        notice and comment. Unless clause (ii) 
                        applies, the Secretary shall provide an 
                        opportunity for public comment on such 
                        proposed revised standard and any such 
                        comments shall be submitted directly to 
                        the consensus committee without delay.
                          (ii) Publication of rejected proposed 
                        revised standard.--If the Secretary 
                        rejects the proposed revised standard, 
                        the Secretary shall publish the 
                        rejected proposed revised standard in 
                        the Federal Register with the reasons 
                        for rejection and any recommended 
                        modifications set forth.
                  (C) Presentation of public comments; 
                publication of recommended revisions.--
                          (i) Presentation.--Any public 
                        comments, views, and objections to a 
                        proposed revised standard published 
                        under subparagraph (B) shall be 
                        presented by the Secretary to the 
                        consensus committee upon their receipt 
                        and in the manner received, in 
                        accordance with procedures established 
                        by the American National Standards 
                        Institute.
                          (ii) Publication by the secretary.--
                        The consensus committee shall provide 
                        to the Secretary any revisions proposed 
                        by the consensus committee, which the 
                        Secretary shall, not later than 7 
                        calendar days after receipt, cause to 
                        be published in the Federal Register as 
                        a notice of the recommended revisions 
                        of the consensus committee to the 
                        standard, a notice of the submission of 
                        the recommended revisions to the 
                        Secretary, and a description of the 
                        circumstances under which the proposed 
                        revised standards could become 
                        effective.
                          (iii) Publication of rejected 
                        proposed revised standard.--If the 
                        Secretary rejects the proposed revised 
                        standard, the Secretary shall publish 
                        the rejected proposed revised standard 
                        in the Federal Register with the 
                        reasons for rejection and any 
                        recommended modifications set forth.
          (5) Review by the secretary.--
                  (A) In general.--The Secretary shall either 
                adopt, modify, or reject a standard, as 
                submitted by the consensus committee under 
                paragraph (4)(A).
                  (B) Timing.--Not later than 12 months after 
                the date on which a standard is submitted to 
                the Secretary by the consensus committee, the 
                Secretary shall take action regarding such 
                standard under subparagraph (C).
                  (C) Procedures.--If the Secretary--
                          (i) adopts a standard recommended by 
                        the consensus committee, the Secretary 
                        shall--
                                  (I) issue a final order 
                                without further rulemaking; and
                                  (II) cause the final order to 
                                be published in the Federal 
                                Register;
                          (ii) determines that any standard 
                        should be rejected, the Secretary 
                        shall--
                                  (I) reject the standard; and
                                  (II) cause to be published in 
                                the Federal Register a notice 
                                to that effect, together with 
                                the reason or reasons for 
                                rejecting the proposed 
                                standard; or
                          (iii) determines that a standard 
                        recommended by the consensus committee 
                        should be modified, the Secretary 
                        shall--
                                  (I) cause the proposed 
                                modified standard to be 
                                published in the Federal 
                                Register, together with an 
                                explanation of the reason or 
                                reasons for the determination 
                                of the Secretary; and
                                  (II) provide an opportunity 
                                for public comment in 
                                accordance with section 553 of 
                                title 5, United States Code.
                  (D) Final order.--Any final standard under 
                this paragraph shall become effective pursuant 
                to subsection (c).
          (6) Failure to act.--If the Secretary fails to take 
        final action under paragraph (5) and to publish notice 
        of the action in the Federal Register before the 
        expiration of the 12-month period beginning on the date 
        on which the proposed standard is submitted to the 
        Secretary under paragraph (4)(A)--
                  (A) the recommendations of the consensus 
                committee--
                          (i) shall be considered to have been 
                        adopted by the Secretary; and
                          (ii) shall take effect upon the 
                        expiration of the 180-day period that 
                        begins upon the conclusion of such 12-
                        month period; and
                  (B) not later than 10 days after the 
                expiration of such 12-month period, the 
                Secretary shall cause to be published in the 
                Federal Register a notice of the failure of the 
                Secretary to act, the revised standard, and the 
                effective date of the revised standard, which 
                notice shall be deemed to be an order of the 
                Secretary approving the revised standards 
                proposed by the consensus committee.
  (b) Other Orders.--
          (1) Regulations.--The Secretary may issue procedural 
        and enforcement regulations as necessary to implement 
        the provisions of this title. The consensus committee 
        may submit to the Secretary proposed procedural and 
        enforcement regulations and recommendations for the 
        revision of such regulations.
          (2) Interpretative bulletins.--The Secretary may 
        issue interpretative bulletins to clarify the meaning 
        of any Federal manufactured home construction and 
        safety standard or procedural and enforcement 
        regulation. The consensus committee may submit to the 
        Secretary proposed interpretative bulletins to clarify 
        the meaning of any Federal manufactured home 
        construction and safety standard or procedural and 
        enforcement regulation.
          (3) Review by consensus committee.--Before issuing a 
        procedural or enforcement regulation or an 
        interpretative bulletin--
                  (A) the Secretary shall--
                          (i) submit the proposed procedural or 
                        enforcement regulation or 
                        interpretative bulletin to the 
                        consensus committee; and
                          (ii) provide the consensus committee 
                        with a period of 120 days to submit 
                        written comments to the Secretary on 
                        the proposed procedural or enforcement 
                        regulation or the interpretative 
                        bulletin; and
                  (B) if the Secretary rejects any significant 
                comment provided by the consensus committee 
                under subparagraph (A), the Secretary shall 
                provide a written explanation of the reasons 
                for the rejection to the consensus committee; 
                and
                  (C) following compliance with subparagraphs 
                (A) and (B), the Secretary shall--
                          (i) cause the proposed regulation or 
                        interpretative bulletin and the 
                        consensus committee's written comments 
                        along with the Secretary's response 
                        thereto to be published in the Federal 
                        Register; and
                          (ii) provide an opportunity for 
                        public comment in accordance with 
                        section 553 of title 5, United States 
                        Code.
          (4) Required action.--The Secretary shall act on any 
        proposed regulation or interpretative bulletin 
        submitted by the consensus committee by approving or 
        rejecting the proposal within 120 days from the date 
        the proposal is received by the Secretary. The 
        Secretary shall either--
                  (A) approve the proposal and cause the 
                proposed regulation or interpretative bulletin 
                to be published for public comment in 
                accordance with section 553 of title 5, United 
                States Code; or
                  (B) reject the proposed regulation or 
                interpretative bulletin and--
                          (i) provide a written explanation of 
                        the reasons for rejection to the 
                        consensus committee; and
                          (ii) cause the proposed regulation 
                        and the written explanation for the 
                        rejection to be published in the 
                        Federal Register.
          (5) Emergency orders.--If the Secretary determines, 
        in writing, that such action is necessary in order to 
        respond to an emergency which jeopardizes the public 
        health or safety, or to address an issue on which the 
        Secretary determines that the consensus committee has 
        not made a timely recommendation, following a request 
        by the Secretary, the Secretary may issue an order that 
        is not developed under the procedures set forth in 
        subsection (a) or in this subsection, if the 
        Secretary--
                  (A) provides to the consensus committee a 
                written description and sets forth the reasons 
                why emergency action is necessary and all 
                supporting documentation; and
                  (B) issues and publishes the order in the 
                Federal Register.
          (6) Changes.--Any statement of policies, practices, 
        or procedures relating to construction and safety 
        standards, inspections, monitoring, or other 
        enforcement activities which constitutes a statement of 
        general or particular applicability and future offset 
        and decisions to implement, interpret, or prescribe law 
        of policy by the Secretary is subject to the provisions 
        of subsection (a) or (b) of this subsection. Any change 
        adopted in violation of the provisions of subsection 
        (a) or (b) of this subsection is void.
          (7) Transition.--Until the date that the consensus 
        committee is appointed pursuant to section 1104(a)(3), 
        the Secretary may issue proposed orders that are not 
        developed under the procedures set forth in this 
        section for new and revised standards.

           *       *       *       *       *       *       *

    (d) Whenever a Federal manufactured home construction and 
safety standard established under this title is in effect, no 
State or political subdivision of a State shall have any 
authority either to establish, or to continue in effect, with 
respect to any manufactured home covered, any standard 
regarding construction or safety applicable to the same aspect 
of performance of such manufactured home which is not identical 
to the Federal manufactured home construction and safety 
standard. Federal preemption under this subsection shall be 
broadly and liberally construed to ensure that disparate State 
or local requirements or standards do not affect the uniformity 
and comprehensiveness of the standards promulgated hereunder 
nor the Federal superintendence of the manufactured housing 
industry as established by this title. Subject to section 605, 
there is reserved to each State the right to establish 
standards for the stabilizing and support systems of 
manufactured homes sited within that State, and for the 
foundations on which manufactured homes sited within that State 
are installed, and the right to enforce compliance with such 
standards, except that such standards shall be consistent with 
the purposes of this title and shall be consistent with the 
design of the manufacturer.
    [(e) The Secretary may by order amend or revoke any Federal 
manufactured home construction or safety standard established 
under this section. Such order shall specify the date on which 
such amendment or revocation is to take effect, which shall not 
be sooner than one hundred and eighty days or later than one 
year from the date the order is issued, unless the Secretary 
finds, for good cause shown, that an earlier or later date is 
in the public interest, and publishes his reasons for such 
findings.
    [(f) In establishing standards under this section, the 
Secretary shall--]
    (e) Considerations in Establishing and Interpreting 
Standards and Regulations.--The consensus committee, in 
recommending standards, regulations, and interpretations, and 
the Secretary, in establishing standards or regulations, or 
issuing interpretations under this section, shall--
          (1) consider relevant available manufactured home 
        construction and safety data, including the results of 
        the research, development, testing, and evaluation 
        activities conducted pursuant to this title, and those 
        activities conducted by private organizations and other 
        governmental agencies to determine how to best protect 
        the public;

           *       *       *       *       *       *       *

    [(g) The Secretary shall issue an order establishing 
initial Federal manufactured home construction and safety 
standards not later than one year after the date of enactment 
of this Act.]
    [(h)] (f) The Secretary shall exclude from the coverage of 
this title any structure which the manufacturer certifies, in a 
form prescribed by the Secretary, to be:
          (1) * * *

           *       *       *       *       *       *       *

    [(i)] (g)(1) The Federal manufactured home construction and 
safety standards established by the Secretary under this 
section shall include preemptive energy conservation standards 
in accordance with this subsection.

           *       *       *       *       *       *       *

    [(j)] (h) The Secretary shall develop a new standard for 
hardboard panel siding on manufactured housing taking into 
account durability, longevity, consumer's costs for maintenance 
and any other relevant information pursuant to subsection [(f)] 
(e). The Secretary shall consult with the National Manufactured 
Home Advisory Council and the National Commission on 
Manufactured Housing in establishing the new standard. The new 
performance standard developed shall ensure the durability of 
hardboard sidings for at least a normal life of a mortgage with 
minimum maintenance required. Not later than 180 days from the 
date of enactment of this subsection, the Secretary shall 
update the standards for hardboard siding.

              [national manufactured home advisory council

    [Sec. 605. (a) The Secretary shall appoint a National 
Manufactured Home Advisory Council with the following 
composition: eight members selected from among consumer 
organizations, community organizations, and recognized consumer 
leaders; eight members from the manufactured home industry and 
related groups including at least one representative of small 
business; and eight members selected from government agencies 
including Federal, State, and local governments. Appointments 
under this subsection shall be made without regard to the 
provisions of title 5, United States Code, relating to 
appointments in the competitive service, classification, and 
General Schedule pay rates. The Secretary shall publish the 
names of the members of the Council annually and shall 
designate which members represent the general public.
    [(b) The Secretary shall, to the extent feasible, consult 
with the Advisory Council prior to establishing, amending, or 
revoking any manufactured home construction or safety standard 
pursuant to the provisions of this title.
    [(c) Any member of the National Manufactured Home Advisory 
Council who is appointed from outside the Federal Government 
may be compensated at a rate not to exceed $100 per diem 
(including traveltime) when engaged in the actual duties of the 
Advisory Council. Such members, while away from their homes or 
regularplaces of business, may be allowed travel expenses, 
including per diem in lieu of subsistence as authorized by section 
5703(b) of title 5, United States Code, for persons in the Government 
service employed intermittently.]

SEC. 605. MANUFACTURED HOME INSTALLATION.

  (a) Provision of Installation Design and Instructions.--A 
manufacturer shall provide with each manufactured home, design 
and instructions for the installation of the manufactured home 
that have been approved by a design approval primary inspection 
agency. After establishment of model standards under subsection 
(b)(2), a design approval primary inspection agency may not 
give such approval unless a design and instruction provides 
equal or greater protection than the protection provided under 
such model standards.
  (b) Model Manufactured Home Installation Standards.--
          (1) Proposed model standards.--Not later than 18 
        months after the date on which the initial appointments 
        of all of the members of the consensus committee are 
        completed, the consensus committee shall develop and 
        submit to the Secretary proposed model manufactured 
        home installation standards, which shall, to the 
        maximum extent possible, taking into account the 
        factors described in section 604(e), be consistent 
        with--
                  (A) the home designs that have been approved 
                by a design approval primary inspection agency; 
                and
                  (B) the designs and instructions for the 
                installation of manufactured homes provided by 
                manufacturers under subsection (a).
          (2) Establishment of model standards.--Not later than 
        12 months after receiving the proposed model standards 
        submitted under paragraph (1), the Secretary shall 
        develop and establish model manufactured home 
        installation standards, which shall be consistent 
        with--
                  (A) the home designs that have been approved 
                by a design approval primary inspection agency; 
                and
                  (B) the designs and instructions for the 
                installation of manufactured homes provided by 
                manufacturers under subsection (a).
          (3) Factors for consideration.--
                  (A) Consensus committee.--In developing the 
                proposed model standards under paragraph (1), 
                the consensus committee shall consider the 
                factors described in section 604(e).
                  (B) Secretary.--In developing and 
                establishing the model standards under 
                paragraph (2), the Secretary shall consider the 
                factors described in section 604(e).
  (c) Manufactured Home Installation Programs.--
          (1) Protection of manufactured housing residents 
        during initial period.--During the 5-year period 
        beginning on the date of enactment of the Manufactured 
        Housing Improvement Act, no State or manufacturer may 
        establish or implement any installation standards that, 
        in the determination of the Secretary, provide less 
        protection to the residents of manufactured homes than 
        the protection provided by the installation standards 
        in effect with respect to the State or manufacturer, as 
        applicable, on the date of enactment of the 
        Manufactured Housing Improvement Act.
          (2) Installation standards.--
                  (A) Establishment of installation program.--
                Not later than the expiration of the 5-year 
                period described in paragraph (1), the 
                Secretary shall establish an installation 
                program that meets the requirements of 
                paragraph (3) for the enforcement of 
                installation standards in each State described 
                in subparagraph (B).
                  (B) Implementation of installation program.--
                Beginning on the expiration of the 5-year 
                period described in paragraph (1), the 
                Secretary shall implement the installation 
                program established under subparagraph (A) in 
                each State that does not have an installation 
                program established by State law that meets the 
                requirements of paragraph (3).
                  (C) Contracting out of implementation.--In 
                carrying out subparagraph (B), the Secretary 
                may contract with an appropriate agent to 
                implement the installation program established 
                under that subparagraph, except that such agent 
                shall not be a person or entity other than a 
                government, nor an affiliate or subsidiary of 
                such a person or entity, that has entered into 
                a contract with the Secretary to implement any 
                other regulatory program under this title.
          (3) Requirements.--An installation program meets the 
        requirements of this paragraph if it is a program 
        regulating the installation of manufactured homes that 
        includes--
                  (A) installation standards that, in the 
                determination of the Secretary, provide 
                protection to the residents of manufactured 
                homes that equals or exceeds the protection 
                provided to those residents by--
                          (i) the model manufactured home 
                        installation standards established 
                        under subsection (b); or
                          (ii) the designs and instructions 
                        provided by manufacturers under 
                        subsection (a), if the Secretary 
                        determines that such designs and 
                        instructions provide protection to the 
                        residents of the manufactured home that 
                        equals or exceeds the protection 
                        provided by the model manufactured home 
                        installation standards established 
                        under subsection (b);
                  (B) the training and licensing of 
                manufactured home installers; and
                  (C) inspection of the installation of 
                manufactured homes.

           *       *       *       *       *       *       *

                           public information

    Sec. 607. (a) Whenever any manufacturer is opposed to any 
action of the Secretary under section 604 or under any other 
provision of this title on the grounds of increased cost or for 
other reasons, the manufacturer shall submit to the Secretary 
such cost and other information (in such detail as the 
Secretary may by rule or order prescribe) as may be necessary 
in order to properly evaluate the manufacturer's statement. The 
Secretary shall submit such cost and other information to the 
consensus committee for evaluation.
    [(c) If the Secretary proposes to establish, amend, or 
revoke a Federal manufactured home construction and safety 
standard under section 604 on the basis of information 
submitted pursuant to subsection (a), he shall publish a notice 
of such proposed action, together with the reasons therefor, in 
the Federal Register at least thirty days in advance of making 
a final determination, in order to allow interested parties an 
opportunity to comment.]
    [(d)] (c) For purposes of this section, ``cost 
information'' means information with respect to alleged cost 
increases resulting from action by the Secretary, in such a 
form as to permit the public, the consensus committee, and the 
Secretary to make an informed judgment on the validity of the 
manufacturer's statements. Such term includes both the 
manufacturer's statements. Such term includes both the 
manufacturer's cost and the cost to retail purchasers.
    [(e)] (d) Nothing in this section shall be construed to 
restrict the authority of the Secretary to obtain or require 
submission of information under any other provision of this 
title.

              research, testing, development, and training

    Sec. 608. (a) The Secretary shall conduct research, 
testing, development, and training necessary to carry out the 
purposes of this title, including, but not limited to--
          (1) * * *
          (2) procuring (by negotiation or otherwise) 
        experimental and other manufactured homes for research 
        and testing purposes; [and]
          (3) selling or otherwise disposing of test 
        manufactured homes and reimbursing the proceeds of such 
        sale or disposal into the current appropriation 
        available for the purpose of carrying out this 
        title[.];
          (4) encouraging the government sponsored housing 
        entities to actively develop and implement secondary 
        market securitization programs for FHA manufactured 
        home loans and those of other loan programs, as 
        appropriate, thereby promoting the availability of 
        affordable manufactured homes to increase homeownership 
        for all people in the United States; and
          (5) reviewing the programs for FHA manufactured home 
        loans and developing any changes to such programs to 
        promote the affordability of manufactured homes, 
        including changes in loan terms, amortization periods, 
        regulations, and procedures.

           *       *       *       *       *       *       *

  (c) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Government sponsored housing entities.--The term 
        ``government sponsored housing entities'' means the 
        Government National Mortgage Association of the 
        Department of Housing and Urban Development, the 
        Federal National Mortgage Association, and the Federal 
        Home Loan Mortgage Corporation.
          (2) FHA manufactured home loans.--The term ``FHA 
        manufactured home loan'' means a loan that--
                  (A) is insured under title I of the National 
                Housing Act and is made for the purpose of 
                financing alterations, repairs, or improvements 
                on or in connection with an existing 
                manufactured home, the purchase of a 
                manufactured home, the purchase of a 
                manufactured home and a lot on which to place 
                the home, or the purchase only of a lot on 
                which to place a manufactured home; or
                  (B) otherwise insured under the National 
                Housing Act and made for or in connection with 
                a manufactured home.

           *       *       *       *       *       *       *

                      noncompliance with standards

    Sec. 613. (a) If the Secretary or a court of appropriate 
jurisdiction determines that any manufactured home does not 
conform to applicable Federal manufactured home construction 
and safety standards, or that it contains a defect which 
constitutes an imminent safety hazard, after the sale of such 
manufactured home by a manufacturer to a distributor or a 
[dealer] retailer and prior to the sale of such manufactured 
home by such distributor or [dealer] retailer to a purchaser--
          (1) the manufacturer shall immediately repurchase 
        such manufactured home from such distributor or 
        [dealer] retailer at the price paid by such distributor 
        or [dealer] retailer, plus all transportation charges 
        involved and a reasonable reimbursement of not less 
        than 1 per centum per month of such price paid prorated 
        from the date of receipt by certified mail of notice of 
        such nonconformance to the date of repurchase by the 
        manufacturer; or
          (2) the manufacturer, at his own expense, shall 
        immediately furnish the purchasing distributor or 
        [dealer] retailer the required conforming part or parts 
        or equipment for installation by the distributor or 
        [dealer] retailer on or in such manufactured home, and 
        for the installation involved the manufacturer shall 
        reimburse such distributor or [dealer] retailer for the 
        reasonable value of such installation plus a reasonable 
        reimbursement of not less than 1 per centum per month 
        of the manufacturer's or distributor's selling price 
        prorated from the date of receipt by certified mail of 
        notice of such nonconformance to the date such vehicle 
        is brought into conformance with applicable Federal 
        standards, so long as the distributor or [dealer] 
        retailer proceeds with reasonable diligence with the 
        installation after the required part or equipment is 
        received.
The value of such reasonable reimbursements as specified in 
paragraphs (1) and (2) of this subsection shall be fixed by 
mutual agreement of the parties, or, failing such agreement, by 
the court pursuant to the provisions of subsection (b).
    (b) If any manufacturer fails to comply with the 
requirements of subsection (a), then the distributor or 
[dealer] retailer, as the case may be, to whom such 
manufactured home has been sold may bring an action seeking a 
court injunction compelling compliance with such requirements 
on the part of such manufacturer. Such action may be brought in 
any district court in the United States in the district in 
which such manufacturer resides, or is found, or has an agent, 
without regard to the amount in controversy, and the person 
bringing the action shall also be entitled to recover any 
damage sustained by him, as well as all court costs plus 
reasonable attorneys' fees. Any action brought pursuant to this 
section shall be forever barred unless commenced within three 
years after the cause of action shall have accrued.

              inspection of manufactured homes and records

    Sec. 614. (a) * * *

           *       *       *       *       *       *       *

    (f) Each manufacturer, distributor, and [dealer] retailer 
of manufactured homes shall establish and maintain such 
records, make such reports, and provide such information as the 
Secretary may reasonably require to enable him to determine 
whether such manufacturer, distributor, or [dealer] retailer 
has acted or is acting in compliance with this title and 
Federal manufactured home construction and safety standards 
prescribed pursuant to this title and shall, upon request of a 
person duly designated by the Secretary, permit such person to 
inspect appropriate books, papers, records, and documents 
relevant to determining whether such manufacturer, distributor, 
or [dealer] retailer has acted or is acting in compliance with 
this title and manufactured home construction and safety 
standards prescribed pursuant to this title.

           *       *       *       *       *       *       *

                 notification and correction of defects

    Sec. 615. (a) * * *
    (b) The notification required by subsection (a) shall be 
accomplished--
          (1) by mail to the first purchaser (not including any 
        [dealer] retailer or distributor of such manufacturer) 
        of the manufactured home containing the defect, and to 
        any subsequent purchaser to whom any warranty on such 
        manufactured home has been transferred;
          (2) by mail to any other person who is a registered 
        owner of such manufactured home and whose name and 
        address has been ascertained pursuant to procedures 
        established under subsection (f); and
          (3) by mail or other more expeditious means to the 
        [dealer or dealers] retailer or retailers of such 
        manufacturer to whom such manufactured home was 
        delivered.

           *       *       *       *       *       *       *

    (d) Every manufacturer of manufactured homes shall furnish 
to the Secretary a true or representative copy of all notices, 
bulletins, and other communications to the [dealers] retailers 
of such manufacturer or purchasers of manufactured homes of 
such manufacturer regarding any defect in any such manufactured 
home produced by such manufacturer. The Secretary shall 
disclose to the public so much of the information contained in 
such notices or other information obtained under section 614 as 
he deems will assist in carrying out the purposes of this 
title, but he shall not disclose any information which contains 
or relates to a trade secret, or which, if disclosed would put 
such manufacturer at a substantial competitive disadvantage, 
unless he determines that it is necessary to carry out the 
purposes of this title.
    (f) Every manufacturer of manufactured homes shall maintain 
a record of the name and address of the first purchaser of each 
manufactured home (for purposes other than resale), and, to the 
maximum extent feasible, shall maintain procedures for 
ascertaining the name and address of any subsequent purchaser 
thereof and shall maintain a record of names and addresses so 
ascertained. Such records shall be kept for each home produced 
by a manufacturer. The Secretary may establish by order 
procedures to be followed by manufacturers in establishing and 
maintaining such records, including procedures to be followed 
by distributors and [dealers] retailers to assist manufacturers 
to secure the information required by this subsection. Such 
procedures shall be reasonable for the particular type of 
manufactured home for which they are prescribed.

   certification of conformity with construction and safety standards

    Sec. 616. Every manufacturer of manufactured homes shall 
furnish to the distributor or [dealer] retailer at the time of 
delivery of each such manufactured home produced by such 
manufacturer certification that such manufactured home conforms 
to all applicable Federal construction and safety standards. 
Such certification shall be in the form of a label or tag 
permanently affixed to each such manufactured home.

           *       *       *       *       *       *       *

                            [inspection fees

    [Sec. 620. In carrying out the inspections required under 
this title, the Secretary may establish and impose on 
manufactured home manufacturers, distributors, and dealers such 
reasonable fees as may be necessary to offset the expenses 
incurred by him in conducting such inspections, and the 
Secretary may use any fees so collected to pay expenses 
incurred in connection with such inspections except that this 
section shall not apply in any State which has in effect a 
State plan under section 623.]

                      authority to establish fees

  Sec. 620. (a) In General.--In carrying out inspections under 
this title, in developing standards and regulations pursuant to 
section 604, and in facilitating the acceptance of the 
affordability and availability of manufactured housing within 
the Department, the Secretary may--
          (1) establish and collect from manufactured home 
        manufacturers such reasonable fees as may be necessary 
        to offset the expenses incurred by the Secretary in 
        connection with carrying out the responsibilities of 
        the Secretary under this title, including--
                  (A) conducting inspections and monitoring;
                  (B) providing funding to States for the 
                administration and implementation of approved 
                State plans under section 623, including 
                reasonable funding for cooperative educational 
                and training programs designed to facilitate 
                uniform enforcement under this title; these 
                funds may be paid directly to the States or may 
                be paid or provided to any person or entity 
                designated to receive and disburse such funds 
                by cooperative agreements among participating 
                States, provided that such person or entity is 
                not otherwise an agent of the Secretary under 
                this title;
                  (C) providing the funding for a noncareer 
                administrator and Federal staff personnel for 
                the manufactured housing program;
                  (D) administering the consensus committee as 
                set forth in section 604; and
                  (E) facilitating the acceptance of the 
                quality, durability, safety, and affordability 
                of manufactured housing within the Department; 
                and
          (2) use any fees collected under paragraph (1) to pay 
        expenses referred to in paragraph (1), which shall be 
        exempt and separate from any limitations on the 
        Department of Housing and Urban Development regarding 
        full-time equivalent positions and travel.
  (b) Contractors.--When using fees under this section, the 
Secretary shall ensure that separate and independent 
contractors are retained to carry out monitoring and inspection 
work and any other work that may be delegated to a contractor 
under this title.
  (c) Prohibited Use.--Fees collected under subsection (a) 
shall not be used for any purpose or activity not specifically 
authorized by this title unless such activity was already 
engaged in by the Secretary prior to the date of enactment of 
this title.
  (d) Modification.--Any fee established by the Secretary under 
this section shall only be modified pursuant to rulemaking in 
accordance with section 553 of title 5, United States Code.
  (e) Appropriation and Deposit of Fees.--
          (1) In general.--There is established in the Treasury 
        of the United States a fund to be known as the 
        ``Manufactured Housing Fees Trust Fund'' for deposit of 
        all fees collected pursuant to subsection (a). These 
        fees shall be held in trust for use only as provided in 
        this title.
          (2) Appropriation.--Such fees shall be available for 
        expenditure only to the extent approved in an annual 
        appropriation Act.

           *       *       *       *       *       *       *

                    state jurisdiction; state plans

    Sec. 623. (a) * * *

           *       *       *       *       *       *       *

    (c) The Secretary shall approve the plan submitted by a 
State under subsection (b), or any modification thereof, if 
such plan in his judgment--
          (1) * * *

           *       *       *       *       *       *       *

          (9) requires manufacturers, distributors, and 
        [dealers] retailers in such State to make reports to 
        the Secretary in the same manner and to the same extent 
        as if the State plan were not in effect;
          (10) provides that the State agency or agencies will 
        make such reports to the Secretary in such form and 
        containing such information as the Secretary shall from 
        time to time require; [and]
          (11) with respect to any State plan submitted on or 
        after the expiration of the 5-year period beginning on 
        the date of enactment of the Manufactured Housing 
        Improvement Act, provides for an installation program 
        established by State law that meets the requirements of 
        section 605(c)(3);
          (12) with respect to any State plan submitted on or 
        after the expiration of the 5-year period beginning on 
        the date of enactment of the Manufactured Housing 
        Improvement Act, provides for a dispute resolution 
        program for the timely resolution of disputes between 
        manufacturers, retailers, and installers of 
        manufactured homes regarding responsibility, and for 
        the issuance of appropriate orders, for the correction 
        or repair of defects in manufactured homes that are 
        reported during the 1-year period beginning on the date 
        of installation; and
          [(11)] (13) complies with such other requirements as 
        the Secretary may by regulation prescribe for the 
        enforcement of this title.

           *       *       *       *       *       *       *

  (g) Enforcement of Dispute Resolution Standards.--
          (1) Establishment of dispute resolution program.--Not 
        later than the expiration of the 5-year period 
        beginning on the date of enactment of the Manufactured 
        Housing Improvement Act, the Secretary shall establish 
        a dispute resolution program that meets the 
        requirements of subsection (c)(12) for dispute 
        resolution in each State described in paragraph (2).
          (2) Implementation of dispute resolution program.--
        Beginning on the expiration of the 5-year period 
        described in paragraph (1), the Secretary shall 
        implement the dispute resolution program established 
        under paragraph (1) in each State that has not 
        established a dispute resolution program that meets the 
        requirements of subsection (c)(12).
          (3) Contracting out of implementation.--In carrying 
        out paragraph (2), the Secretary may contract with an 
        appropriate agent to implement the dispute resolution 
        program established under that paragraph, except that 
        such agent shall not be a person or entity other than a 
        government, nor an affiliate or subsidiary of such a 
        person or entity, that has entered into a contract with 
        the Secretary to implement any other regulatory program 
        under this title.

                       [annual report to congress

    [Sec. 626. (a) The Secretary shall prepare and submit to 
the President for transmittal to the Congress on July 1 of 
every other year beginning with calendar year 1978 a 
comprehensive report on the administration of this title for 
the two preceding calendar years. Such report shall include but 
not be restricted to (1) a thorough statistical compilation of 
the accidents, injuries, deaths, and property losses occurring 
in or involving manufactured homes in such years; (2) a list of 
Federal manufactured home construction and safety standards 
prescribed or in effect in such years; (3) the level of 
compliance with all applicable Federal manufactured home 
standards; (4) a summary of all current research grants and 
contracts together with a descritpion of the problems to be 
studied in such research; (5) an analysis and evaluation, 
including relevant policy recommendations, of research 
activities completed and technological progress achieved during 
such years; (6) a statement of enforcement actions including 
judicial decisions, settlements, defect notifications, and 
pending litigation commenced during such years; and (7) the 
extent to which technical information was disseminated to the 
scientific community and consumer-oriented information was made 
available to manufactured home owners and prospective buyers.
    [(b) The report required by subsection (a) of this section 
shall contain such recommendations for additional or revised 
legislation as the Secretary deems necessary to promote the 
improvement of manufactured home construction and safety and to 
strengthen the national manufactured home program.
    [(c) In order to assure a continuing and effective national 
manufactured home construction and safety program, it is the 
policy of Congress to encourage the adoption of State 
inspection of used manufactured homes. Therefore, to that end 
the Secretary shall conduct a thorough study and investgation 
to determine the adequacy of manufactured home construction and 
safety standards and manufactured home inspection requirements 
and procedures applicable to used manufactured homes in each 
State, and the effect of programs authorized by this title upon 
such standards, requirements, and procedures for used 
manufactured homes, and report to Congress as soon as 
practicable, but not later than one year after the date of 
enactment of this Act, the results of such study, and 
recommendations for such additional legislation as he deems 
necessary to carry out the purposes of this title. Such report 
shall also include recommendations by the Secretary relating to 
the problems of disposal of used manufactured homes.]

                    authorization of appropriations

    Sec. [627.] 626. There are authorized to be appropriated 
such sums as may be necessary to carry out the provisions of 
this title.

                             effective date

    Sec. [628.] 627. The provisions of this title shall take 
effect upon the expiration of 180 days following the date of 
enactment of this title.

           Additional Views of Representative John J. LaFalce

    As Congress debates this homeownership and community 
development bill, it is instructive to reflect on our recent 
record in these two important areas.
    This nation is currently enjoying its highest homeownership 
rate--66.8%. A significant cause of this achievement is the 
Budget Act--policies which have created record budget 
surpluses, lower interest and mortgage rates, seven years of 
robust economic growth, and record levels of consumer 
confidence.
    Our record homeownership rate has also come about through 
pro-active housing policies--including last year's fight to 
preserve CRA during consideration of the financial 
modernization bill, a continued commitment to Fair Housing 
enforcement, a reduction in mortgage costs for 1st-time home-
buyers as a result of HUD administrative action to reduce FHA 
premiums, and the virtual elimination of capital gains taxes on 
principal home sales.
    Nevertheless, there is more we can do to make homeownership 
more affordable, and H.R. 1776 includes a number of provisions 
to this end. Debate and consideration of this bill has unfolded 
in a bi-partisan manner, allowing the inclusion through 
amendment or negotiation of a number of provisions put forward 
by the Administration and by members on our side of the aisle.
    For example, with regard to the FHA single family housing 
program, I am pleased that the committee adopted the provisions 
of H.R. 3884, a bill offered by myself and a number of other 
members of the committee. H.R. 3884, the Homeownership 
Opportunities for Uniformed Services and Educators Act,'' also 
known as the HOUSE Act, provides for one percent cash down 
payment mortgages for teachers, policemen, and firemen buying a 
home in the school district or jurisdiction that employees 
them. The purpose of this provision is to help school districts 
and localities with the recruitment and retention of these 
public servants, and to help the latter overcome the down 
payment mortgages for teachers, policemen, and firemen buying a 
home in the school district or jurisdiction that employees 
them. The purpose of this provision is to help school districts 
and localities with the recruitment and retention of these 
public servants, and to help the latter overcome the down 
payment barrier to buying a home.
    The bill also includes two important provisions put forward 
by HUD-the hybrid ARM proposal included in this year's budget 
submission and the codification of HUD's Teacher Next Door 
program. As with other changes made to FHA in recent years, 
authority to guarantee hybrid loans provides FHA with the same 
loan flexibility offered by private sector lenders. The Teacher 
Next Door program, an extension of an existing HUD program for 
policemen, provides for discounted sale of HUD-foreclosed 
homes. And, I am pleased to see the inclusion of my legislation 
to lower the cost of FHA reverse mortgage when used in 
conjunction with the purchase of long-term care insurance, by 
waiving the up-front premium for such use. Some 13 million 
senior citizens living in this country own their home free and 
clear, and this provision will make it easier for these seniors 
to provide financial and emotional security, at no out of 
pocket cost. I was pleased to work with the majority to expand 
this provision to potentially lower costs for reverse mortgages 
used for other health care expenditures.
    Finally, this bill makes major changes to the federal 
regulation of manufactured housing. Over the last few years, 
this section of the bill has undergone a significant 
transformation, through the in corporation of a number of 
changes offered by Democrats to add new consumer protections 
and to restore regulatory authority to federal government. In 
particular, for the first time, we will be setting a national 
minimum installation standard, and establishing a requirement 
that every state operate a dispute resolution process to 
determine responsibility for defects and to order their repair 
in the first year after installation.
    On another positive note, the bill includes a provision 
authorized by Rep. Frank to extend the maximum loan repayment 
period for federally insured loans used to finance manufactured 
housing lots.
    Finally, with respect to economic development, this bill 
includes a reauthorization of the CDBG program at the level 
recommended by the Administration's FY 2001 budget, as well as 
some other miscellaneous provisions. While these are positive 
provisions, they are limited.
    As noted during full committee debate, this committee has 
the opportunity to act on a major community development 
initiative designed to expand economic opportunities for 
individuals and communities being left behind our strong 
economic expansion. That opportunity is the enactment of the 
America's Private Investment Companies Act, also known as APIC. 
Though the committee elected not to include APIC in this bill, 
I am pleased that the majority has publicly committed to act on 
APIC under a separate committee markeup.

                                                   John J. LaFalce.

            ADDITIONAL VIEWS OF REPRESENTATIVE BARNEY FRANK

    I write separately to discuss remaining concerns with Title 
XI (the ``Manufactured Housing Improvement Act'') of the 
American Homeownership Act [``Title XI'' or ``MHIA'']. While 
significant improvements have been made in the MHIA even since 
negotiations resumed at the beginning of this year, further 
changes are called for to ensure that consumers are adequately 
protected.
    Our progress on this bill is the result of a bipartisan 
process. Both sides of the aisle in the House and Senate 
participated in the rewriting of the consensus committee 
sections to ensure that manufactured housing residents will be 
adequately represented. We appreciate the majority's 
willingness to wok with us in the development of provisions 
establishing model installation standards, which will take 
effect if states do not pass their own, and in the creation of 
a dispute resolution process to protect consumers from so-
called ``ping-ponging'' by producers and retailers attempting 
to deflect responsibility for defects. As a result of these 
bipartisan negotiations, the bill is unquestionably better.
    During the full committee's consideration of H.R. 1776, I 
offered amendments to address two concerns. The first has to do 
with the definition of ``monitoring'' in the MHIA. As now 
written, the bill conflates two different functions--
``monitoring'' and ``inspecting''--through the inclusion of 
both concepts in the definition. The main problem with the 
definition in Section 1103(a)(21) arises with subpart (B), 
which provides that monitoring ``may include the periodic 
inspection of retail locations for transit damage, label 
tampering, and retail compliance with this title.'' The 
provision implicitly makes the inspections process a subset of 
monitoring, while then arguably limiting its scope. While the 
definition does not specifically preclude the inspection of the 
actual manufactured home at the manufacturing or retail 
location, the concern is that by mentioning the inspection 
process only in the context of retail locations--and 
essentially only for retail compliance--some may take the 
position that the list of elements to be inspected was intended 
to be exclusive. Since the committee's rejection of this 
amendment by a narrow vote, we have made progress on this 
issue, and I believe that we will be able to reach a resolution 
to make it clear that it is not Congress's intention to curtail 
the ability of HUD and the state agencies to inspect 
manufactured homes for defects at the manufacturing and retail 
sites.
    A second issue that I attempted to address at the markup 
and will pursue is that of the availability of information 
regarding defects. Under current law, the Secretary is 
authorized to make available to the public any information 
indicating the existence of a defect relating to manufactured 
home construction or safety. Notwithstanding this 
authorization, I am told that HUD has never made this 
information available in response to Freedom of Information Act 
requests. As a result, it is difficult for consumer advocates, 
or anyone else, to obtain access to comprehensive, reliable 
data on manufactured housing defects.
    My amendment on disclosure would in essence impose a 
reasonable deadline by which HUD must provide information that 
it should already be providing pursuant to FOIA. And, in the 
interest of ensuring that the defect information is put in 
context, it would require that HUD issue a notification of a 
request for information to anyone who has asked for such 
notification, thereby providing the opportunity for any 
interested parties to respond to the information that HUD is 
releasing. The language of the amendment reflects our interest 
in addressing the concerns expressed by the manufactured 
housing industry: HUD must make the information available only 
upon request, FOIA protections on the release of information 
apply, and the industry would have an opportunity to balance 
information on defects provided by HUD with its own 
information. In addition, I believe that further safeguards are 
appropriate to ensure that only verified information of defects 
threatening serious physical harm is released, and we intend to 
make those changes to the amendment.
    Finally, Section 1102 of the MHIA (``Findings and 
Purposes'') lists eight purposes, but omits the only, critical 
purpose articulated under current law. Section 602 of the 
National Manufactured Housing Construction and Safety Standards 
Act of 1974 [42 USC 5401]] provides: ``The Congress declares 
that the purposes of this title are to reduce the number of 
personal injuries and deaths and the amount of insurance costs 
and property damage resulting from manufactured home accidents 
and to improve the quality and durability of manufactured 
homes. * * *''
    This section is not merely hortatory, nor is its omission 
cosmetic. A federal appeals court based a decision upholding 
HUD wind standards on this statement of purpose. Specifically, 
in Florida Manufactured Housing Assoc. Inc. v. Cisneros, an 
Eleventh Circuit panel said that although the manufacturers 
challenging HUD's post-Hurricane Andrew wind standards were 
right that HUD had to consider cost increases to consumers in 
promulgating regulations, the statute required it to look 
beyond affordability to the goals of reducing injury, death, 
property damage and insurance costs. The bill's purposes should 
explicitly be broadened to include those provided under current 
law. I am confident that this too can be resolved as the bill 
progresses.

                                                      Barney Frank.

                                
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