106TH CONGRESS

2D SESSION H. R. 5640

AN ACT

To expand homeownership in the United States, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SEC. 1. SHORT TITLE AND TABLE OF CONTENTS.

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

3 ‘‘American Homeownership and Economic Opportunity

4 Act of 2000’’.

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

6 this Act is as follows:

Sec. 1. Short title and table of contents.

TITLE I—REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

Sec. 101. Short title.

Sec. 102. Grants for regulatory barrier removal strategies.

Sec. 103. Regulatory barriers clearinghouse.

TITLE II—HOMEOWNERSHIP FOR WORKING FAMILIES

Sec. 201. Home equity conversion mortgages.

Sec. 202. Assistance for self-help housing providers.

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—PRIVATE MORTGAGE INSURANCE CANCELLATION AND

TERMINATION

Sec. 401. Short title.

Sec. 402. Changes in amortization schedule.

Sec. 403. Deletion of ambiguous references to residential mortgages.

Sec. 404. Cancellation rights after cancellation date.

Sec. 405. Clarification of cancellation and termination issues and lender paid

mortgage insurance disclosure requirements.

Sec. 406. Definitions.

TITLE V—NATIVE AMERICAN HOMEOWNERSHIP

Subtitle A—Native American Housing

Sec. 501. Lands title report commission.

Sec. 502. Loan guarantees.

Sec. 503. Native American housing assistance.

Subtitle B—Native Hawaiian Housing

Sec. 511. Short title.

Sec. 512. Findings.

Sec. 513. Housing assistance.

Sec. 514. Loan guarantees.

TITLE VI—MANUFACTURED HOUSING IMPROVEMENT
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Sec. 601. Short title; references.

Sec. 602. Findings and purposes.

Sec. 603. Definitions.

Sec. 604. Federal manufactured home construction and safety standards.

Sec. 605. Abolishment of National Manufactured Home Advisory Council; manufactured home installation.

Sec. 606. Public information.

Sec. 607. Research, testing, development, and training.

Sec. 608. Prohibited acts.

Sec. 609. Fees.

Sec. 610. Dispute resolution.

Sec. 611. Elimination of annual reporting requirement.

Sec. 612. Effective date.

Sec. 613. Savings provisions.

TITLE VII—RURAL HOUSING HOMEOWNERSHIP

Sec. 701. Guarantees for refinancing of rural housing loans.

Sec. 702. Promissory note requirement under housing repair loan program.

Sec. 703. Limited partnership eligibility for farm labor housing loans.

Sec. 704. Project accounting records and practices.

Sec. 705. Definition of rural area.

Sec. 706. Operating assistance for migrant farmworkers projects.

Sec. 707. Multifamily rental housing loan guarantee program.

Sec. 708. Enforcement provisions.

Sec. 709. Amendments to title 18 of United States Code.

TITLE VIII—HOUSING FOR ELDERLY AND DISABLED FAMILIES

Sec. 801. Short title.

Sec. 802. Regulations.

Sec. 803. Effective date.

Subtitle A—Refinancing for Section 202 Supportive Housing for the Elderly

Sec. 811. Prepayment and refinancing.

Subtitle B—Authorization of Appropriations for Supportive Housing for the

Elderly and Persons With Disabilities

Sec. 821. Supportive housing for elderly persons.

Sec. 822. Supportive housing for persons with disabilities.

Sec. 823. Service coordinators and congregate services for elderly and disabled

housing.

Subtitle C—Expanding Housing Opportunities for the Elderly and Persons

With Disabilities

PART 1—HOUSING FOR THE ELDERLY

Sec. 831. Eligibility of for-profit limited partnerships.

Sec. 832. Mixed funding sources.

Sec. 833. Authority to acquire structures.

Sec. 834. Use of project reserves.

Sec. 835. Commercial activities.

PART 2—HOUSING FOR PERSONS WITH DISABILITIES
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Sec. 841. Eligibility of for-profit limited partnerships.

Sec. 842. Mixed funding sources.

Sec. 843. Tenant-based assistance.

Sec. 844. Use of project reserves.

Sec. 845. Commercial activities.

PART 3—OTHER PROVISIONS

Sec. 851. Service coordinators.

Subtitle D—Preservation of Affordable Housing Stock

Sec. 861. Section 236 assistance.

TITLE IX—OTHER RELATED HOUSING PROVISIONS

Sec. 901. Extension of loan term for manufactured home lots.

Sec. 902. Use of section 8 vouchers for opt-outs.

Sec. 903. Maximum payment standard for enhanced vouchers.

Sec. 904. Use of section 8 assistance by ‘‘grand-families’’ to rent dwelling units

in assisted projects.

TITLE X—FEDERAL RESERVE BOARD PROVISIONS

Sec. 1001. Federal Reserve Board buildings.

Sec. 1002. Positions of Board of Governors of the Federal Reserve System on

the Executive schedule.

Sec. 1003. Amendments to the Federal Reserve Act.

TITLE XI—BANKING AND HOUSING AGENCY REPORTS

Sec. 1101. Short title.

Sec. 1102. Preservation of certain reporting requirements.

Sec. 1103. Coordination of reporting requirements.

Sec. 1104. Elimination of certain reporting requirements.

TITLE XII—FINANCIAL REGULATORY RELIEF

Sec. 1200. Short title.

Subtitle A—Improving Monetary Policy and Financial Institution Management

Practices

Sec. 1201. Repeal of savings association liquidity provision.

Sec. 1202. Noncontrolling investments by savings association holding companies.

Sec. 1203. Repeal of deposit broker notification and recordkeeping requirement.

Sec. 1204. Expedited procedures for certain reorganizations.

Sec. 1205. National bank directors.

Sec. 1206. Amendment to National Bank Consolidation and Merger Act.

Sec. 1207. Loans on or purchases by institutions of their own stock; affiliations.

Sec. 1208. Purchased mortgage servicing rights.

Subtitle B—Streamlining Activities of Institutions

Sec. 1211. Call report simplification.

Subtitle C—Streamlining Agency Actions
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Sec. 1221. Elimination of duplicative disclosure of fair market value of assets

and liabilities.

Sec. 1222. Payment of interest in receiverships with surplus funds.

Sec. 1223. Repeal of reporting requirement on differences in accounting standards.

Sec. 1224. Extension of time.

Subtitle D—Technical Corrections

Sec. 1231. Technical correction relating to deposit insurance funds.

Sec. 1232. Rules for continuation of deposit insurance for member banks converting charters.

Sec. 1233. Amendments to the Revised Statutes of the United States.

Sec. 1234. Conforming change to the International Banking Act of 1978.

1 TITLE I—REMOVAL OF BAR2 RIERS TO HOUSING AFFORD3 ABILITY

4 SEC. 101. SHORT TITLE.

5 This title may be cited as the ‘‘Housing Affordability

6 Barrier Removal Act of 2000’’.

7 SEC. 102. GRANTS FOR REGULATORY BARRIER REMOVAL

8 STRATEGIES.

9 (a) AUTHORIZATION OF APPROPRIATIONS.—Sub10 section (a) of section 1204 of the Housing and Community

11 Development Act of 1992 (42 U.S.C. 12705c(a)) is

12 amended to read as follows:

13 ‘‘(a) FUNDING.—There is authorized to be appro14 priated for grants under subsections (b) and (c) such sums

15 as may be necessary for each of fiscal years 2001, 2002,

16 2003, 2004, and 2005.’’.

17 (b) CONSOLIDATION OF STATE AND LOCAL

18 GRANTS.—Subsection (b) of section 1204 of the Housing
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1 and Community Development Act of 1992 (42 U.S.C.

2 12705c(b)) is amended—

3 (1) in the subsection heading, by striking

4 ‘‘STATE GRANTS’’ and inserting ‘‘GRANT AUTHOR5 ITY’’;

6 (2) in the matter preceding paragraph (1), by

7 inserting after ‘‘States’’ the following: ‘‘and units of

8 general local government (including consortia of

9 such governments)’’;

10 (3) in paragraph (3), by striking ‘‘a State pro11 gram to reduce State and local’’ and inserting

12 ‘‘State, local, or regional programs to reduce’’;

13 (4) in paragraph (4), by inserting ‘‘or local’’

14 after ‘‘State’’; and

15 (5) in paragraph (5), by striking ‘‘State’’.

16 (c) REPEAL OF LOCAL GRANTS PROVISION.—Section

17 1204 of the Housing and Community Development Act

18 of 1992 (42 U.S.C. 12705c) is amended by striking sub19 section (c).

20 (d) APPLICATION AND SELECTION.—The last sen21 tence of section 1204(e) of the Housing and Community

22 Development Act of 1992 (42 U.S.C. 12705c(e)) is

23 amended—
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1 (1) by striking ‘‘and for the selection of units

2 of general local government to receive grants under

3 subsection (f)(2)’’; and

4 (2) by inserting before the period at the end the

5 following: ‘‘and such criteria shall require that grant

6 amounts be used in a manner consistent with the

7 strategy contained in the comprehensive housing af8 fordability strategy for the jurisdiction pursuant to

9 section 105(b)(4) of the Cranston-Gonzalez National

10 Affordable Housing Act’’.

11 (e) SELECTION OF GRANTEES.—Subsection (f) of

12 section 1204 of the Housing and Community Development

13 Act of 1992 (42 U.S.C. 12705c(f)) is amended to read

14 as follows:

15 ‘‘(f) SELECTION OF GRANTEES.—To the extent

16 amounts are made available to carry out this section, the

17 Secretary shall provide grants on a competitive basis to

18 eligible grantees based on the proposed uses of such

19 amounts, as provided in applications under subsection

20 (e).’’.

21 (f) TECHNICAL AMENDMENTS.—Section 107(a)(1) of

22 the Housing and Community Development Act of 1974

23 (42 U.S.C. 5307(a)(1)) is amended—

24 (1) in subparagraph (G), by inserting ‘‘and’’

25 after the semicolon at the end;
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1 (2) by striking subparagraph (H); and

2 (3) by redesignating subparagraph (I) as sub3 paragraph (H).

4 SEC. 103. REGULATORY BARRIERS CLEARINGHOUSE.

5 Section 1205 of the Housing and Community Devel6 opment Act of 1992 (42 U.S.C. 12705d) is amended—

7 (1) in subsection (a)—

8 (A) in the matter preceding paragraph (1),

9 by striking ‘‘receive, collect, process, and assem10 ble’’ and inserting ‘‘serve as a national reposi11 tory to receive, collect, process, assemble, and

12 disseminate’’;

13 (B) in paragraph (1)—

14 (i) by striking ‘‘, including’’ and in15 serting ‘‘(including’’; and

16 (ii) by inserting before the semicolon

17 at the end the following: ‘‘), and the preva18 lence and effects on affordable housing of

19 such laws, regulations, and policies’’;

20 (C) in paragraph (2), by inserting before

21 the semicolon the following: ‘‘, including par22 ticularly innovative or successful activities,

23 strategies, and plans’’; and

24 (D) in paragraph (3), by inserting before

25 the period at the end the following: ‘‘, including
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1 particularly innovative or successful strategies,

2 activities, and plans’’;

3 (2) in subsection (b)—

4 (A) in paragraph (1), by striking ‘‘and’’ at

5 the end;

6 (B) in paragraph (2), by striking the pe7 riod at the end and inserting ‘‘; and’’; and

8 (C) by adding at the end the following new

9 paragraph:

10 ‘‘(3) by making available through a World Wide

11 Web site of the Department, by electronic mail, or

12 otherwise, provide to each housing agency of a unit

13 of general local government that serves an area hav14 ing a population greater than 100,000, an index of

15 all State and local strategies and plans submitted

16 under subsection (a) to the clearinghouse, which—

17 ‘‘(A) shall describe the types of barriers to

18 affordable housing that the strategy or plan

19 was designed to ameliorate or remove; and

20 ‘‘(B) shall, not later than 30 days after

21 submission to the clearinghouse of any new

22 strategy or plan, be updated to include the new

23 strategy or plan submitted.’’; and

24 (3) by adding at the end the following new sub25 sections:
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1 ‘‘(c) ORGANIZATION.—The clearinghouse under this

2 section shall be established within the Office of Policy De3 velopment of the Department of Housing and Urban De4 velopment and shall be under the direction of the Assist5 ant Secretary for Policy Development and Research.

6 ‘‘(d) TIMING.—The clearinghouse under this section

7 (as amended by section 103 of the Housing Affordability

8 Barrier Removal Act of 2000) shall be established and

9 commence carrying out the functions of the clearinghouse

10 under this section not later than 1 year after the date of

11 the enactment of such Act. The Secretary of Housing and

12 Urban Development may comply with the requirements

13 under this section by reestablishing the clearinghouse that

14 was originally established to comply with this section and

15 updating and improving such clearinghouse to the extent

16 necessary to comply with the requirements of this section

17 as in effect pursuant to the enactment of such Act.’’.

18 TITLE II—HOMEOWNERSHIP

19 FOR WORKING FAMILIES

20 SEC. 201. HOME EQUITY CONVERSION MORTGAGES.

21 (a) INSURANCE FOR MORTGAGES TO REFINANCE EX22 ISTING HECMS.—

23 (1) IN GENERAL.—Section 255 of the National

24 Housing Act (12 U.S.C. 1715z–20) is amended—
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1 (A) by redesignating subsection (k) as sub2 section (m); and

3 (B) by inserting after subsection (j) the

4 following new subsection:

5 ‘‘(k) INSURANCE AUTHORITY FOR REFINANCINGS.—

6 ‘‘(1) IN GENERAL.—The Secretary may, upon

7 application by a mortgagee, insure under this sub8 section any mortgage given to refinance an existing

9 home equity conversion mortgage insured under this

10 section.

11 ‘‘(2) ANTI-CHURNING DISCLOSURE.—The Sec12 retary shall, by regulation, require that the mort13 gagee of a mortgage insured under this subsection,

14 provide to the mortgagor, within an appropriate time

15 period and in a manner established in such regula16 tions, a good faith estimate of: (A) the total cost of

17 the refinancing; and (B) the increase in the mortga18 gor’s principal limit as measured by the estimated

19 initial principal limit on the mortgage to be insured

20 under this subsection less the current principal limit

21 on the home equity conversion mortgage that is

22 being refinanced and insured under this subsection.

23 ‘‘(3) WAIVER OF COUNSELING REQUIRE24 MENT.—The mortgagor under a mortgage insured

25 under this subsection may waive the applicability,
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1 with respect to such mortgage, of the requirements

2 under subsection (d)(2)(B) (relating to third party

3 counseling), but only if—

4 ‘‘(A) the mortgagor has received the disclo5 sure required under paragraph (2);

6 ‘‘(B) the increase in the principal limit de7 scribed in paragraph (2) exceeds the amount of

8 the total cost of refinancing (as described in

9 such paragraph) by an amount to be deter10 mined by the Secretary; and

11 ‘‘(C) the time between the closing of the

12 original home equity conversion mortgage that

13 is refinanced through the mortgage insured

14 under this subsection and the application for a

15 refinancing mortgage insured under this sub16 section does not exceed 5 years.

17 ‘‘(4) CREDIT FOR PREMIUMS PAID.—Notwith18 standing section 203(c)(2)(A), the Secretary may re19 duce the amount of the single premium payment

20 otherwise collected under such section at the time of

21 the insurance of a mortgage refinanced and insured

22 under this subsection. The amount of the single pre23 mium for mortgages refinanced under this sub24 section shall be determined by the Secretary based

25 on the actuarial study required under paragraph (5).
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1 ‘‘(5) ACTUARIAL STUDY.—Not later than 180

2 days after the date of the enactment of the Amer3 ican Homeownership and Economic Opportunity Act

4 of 2000, the Secretary shall conduct an actuarial

5 analysis to determine the adequacy of the insurance

6 premiums collected under the program under this

7 subsection with respect to—

8 ‘‘(A) a reduction in the single premium

9 payment collected at the time of the insurance

10 of a mortgage refinanced and insured under

11 this subsection;

12 ‘‘(B) the establishment of a single national

13 limit on the benefits of insurance under sub14 section (g) (relating to limitation on insurance

15 authority); and

16 ‘‘(C) the combined effect of reduced insur17 ance premiums and a single national limitation

18 on insurance authority.

19 ‘‘(6) FEES.—The Secretary may establish a

20 limit on the origination fee that may be charged to

21 a mortgagor under a mortgage insured under this

22 subsection, except that such limitation shall provide

23 that the origination fee may be fully financed with

24 the mortgage and shall include any fees paid to cor25 respondent mortgagees approved by the Secretary.’’.
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1 (2) REGULATIONS.—The Secretary shall issue

2 any final regulations necessary to implement the

3 amendments made by paragraph (1) of this sub4 section, which shall take effect not later than the ex5 piration of the 180-day period beginning on the date

6 of the enactment of this Act. The regulations shall

7 be issued after notice and opportunity for public

8 comment in accordance with the procedure under

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

10 to substantive rules (notwithstanding subsections

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

12 (b) HOUSING COOPERATIVES.—Section 255(b) of the

13 National Housing Act (12 U.S.C. 1715z–20(b)) is

14 amended—

15 (1) in paragraph (2), by striking ‘‘ ‘mortgage’,’’;

16 and

17 (2) by adding at the end the following new

18 paragraphs:

19 ‘‘(4) MORTGAGE.—The term ‘mortgage’ means

20 a first mortgage or first lien on real estate, in fee

21 simple, on all stock allocated to a dwelling in a resi22 dential cooperative housing corporation, or on a

23 leasehold—

24 ‘‘(A) under a lease for not less than 99

25 years that is renewable; or
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1 ‘‘(B) under a lease having a period of not

2 less than 10 years to run beyond the maturity

3 date of the mortgage.

4 ‘‘(5) FIRST MORTGAGE.—The term ‘first mort5 gage’ means such classes of first liens as are com6 monly given to secure advances on, or the unpaid

7 purchase price of, real estate or all stock allocated

8 to a dwelling unit in a residential cooperative hous9 ing corporation, under the laws of the State in which

10 the real estate or dwelling unit is located, together

11 with the credit instruments, if any, secured there12 by.’’.

13 (c) WAIVER OF UP-FRONT PREMIUMS FOR MORT14 GAGES USED TO FUND LONG-TERM CARE INSURANCE.—

15 (1) IN GENERAL.—Section 255 of the National

16 Housing Act (12 U.S.C. 1715z–20) is amended by

17 inserting after subsection (k) (as added by sub18 section (a) of this section) the following new sub19 section:

20 ‘‘(l) WAIVER OF UP-FRONT PREMIUMS FOR MORT21 GAGES TO FUND LONG-TERM CARE INSURANCE.—

22 ‘‘(1) IN GENERAL.—In the case of any mort23 gage insured under this section under which the

24 total amount (except as provided in paragraph (2))

25 of all future payments described in subsection (b)(3)
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1 will be used only for costs of a qualified long-term

2 care insurance contract that covers the mortgagor or

3 members of the household residing in the property

4 that is subject to the mortgage, notwithstanding sec5 tion 203(c)(2), the Secretary shall not charge or col6 lect the single premium payment otherwise required

7 under subparagraph (A) of such section to be paid

8 at the time of insurance.

9 ‘‘(2) AUTHORITY TO REFINANCE EXISTING

10 MORTGAGE AND FINANCE CLOSING COSTS.—A

11 mortgage described in paragraph (1) may provide fi12 nancing of amounts that are used to satisfy out13 standing mortgage obligations (in accordance with

14 such limitations as the Secretary shall prescribe)

15 and any amounts used for initial service charges, ap16 praisal, inspection, and other fees (as approved by

17 the Secretary) in connection with such mortgage,

18 and the amount of future payments described in

19 subsection (b)(3) under the mortgage shall be re20 duced accordingly.

21 ‘‘(3) DEFINITION.—For purposes of this sub22 section, the term ‘qualified long-term care insurance

23 contract’ has the meaning given such term in section

24 7702B of the Internal Revenue Code of 1986 (26
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1 U.S.C. 7702B)), except that such contract shall also

2 meet the requirements of—

3 ‘‘(A) sections 9 (relating to disclosure), 24

4 (relating to suitability), and 26 (relating to con5 tingent nonforfeiture) of the long-term care in6 surance model regulation promulgated by the

7 National Association of Insurance Commis8 sioners (as adopted as of September 2000); and

9 ‘‘(B) section 8 (relating to contingent non10 forfeiture) of the long-term care insurance

11 model Act promulgated by the National Asso12 ciation of Insurance Commissioners (as adopted

13 as of September 2000).’’.

14 (2) APPLICABILITY.—The provisions of section

15 255(l) of the National Housing Act (as added by

16 paragraph (1) of this subsection) shall apply only to

17 mortgages closed on or after April 1, 2001.

18 (d) STUDY OF SINGLE NATIONAL MORTGAGE

19 LIMIT.—The Secretary of Housing and Urban Develop20 ment shall conduct an actuarially based study of the ef21 fects of establishing, for mortgages insured under section

22 255 of the National Housing Act (12 U.S.C. 1715z–20),

23 a single maximum mortgage amount limitation in lieu of

24 applicability of section 203(b)(2) of such Act (12 U.S.C.

25 1709(b)(2)). The study shall—
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1 (1) examine the effects of establishing such lim2 itation at different dollar amounts; and

3 (2) examine the effects of such various limita4 tions on—

5 (A) the risks to the General Insurance

6 Fund established under section 519 of such

7 Act;

8 (B) the mortgage insurance premiums that

9 would be required to be charged to mortgagors

10 to ensure actuarial soundness of such Fund;

11 and

12 (C) take into consideration the various ap13 proaches to providing credit to borrowers who

14 refinance home equity conversion mortgages in15 sured under section 255 of such Act.

16 Not later than 180 days after the date of the enactment

17 of this Act, the Secretary shall complete the study under

18 this subsection and submit a report describing the study

19 and the results of the study to the Committee on Banking

20 and Financial Services of the House of Representatives

21 and to the Committee on Banking, Housing, and Urban

22 Affairs of the Senate.
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1 SEC. 202. ASSISTANCE FOR SELF-HELP HOUSING PRO2 VIDERS.

3 (a) REAUTHORIZATION.—Subsection (p) of section

4 11 of the Housing Opportunity Program Extension Act

5 of 1996 (42 U.S.C. 12805 note) is amended to read as

6 follows:

7 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—There

8 are authorized to be appropriated to carry out this section

9 such sums as may be necessary for fiscal year 2001.’’.

10 (b) ELIGIBLE EXPENSES.—Section 11(d)(2)(A) of

11 the Housing Opportunity Program Extension Act of 1996

12 (42 U.S.C. 12805 note) is amended by inserting before

13 the period at the end the following: ‘‘, which may include

14 reimbursing an organization, consortium, or affiliate, upon

15 approval of any required environmental review, for

16 nongrant amounts of the organization, consortium, or af17 filiate advanced before such review to acquire land’’.

18 (c) DEADLINE FOR RECAPTURE OF FUNDS.—Section

19 11 of the Housing Opportunity Program Extension Act

20 of 1996 (42 U.S.C. 12805 note) is amended—

21 (1) in subsection (i)(5)—

22 (A) by striking ‘‘if the organization or con23 sortia has not used any grant amounts’’ and in24 serting ‘‘the Secretary shall recapture any grant

25 amounts provided to the organization or con26 sortia that are not used’’;
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1 (B) by striking ‘‘(or,’’ and inserting ‘‘, ex2 cept that such period shall be 36 months’’; and

3 (C) by striking ‘‘within 36 months), the

4 Secretary shall recapture such unused

5 amounts’’ and inserting ‘‘and in the case of a

6 grant amounts provided to a local affiliate of

7 the organization or consortia that is developing

8 five or more dwellings in connection with such

9 grant amounts’’; and

10 (2) in subsection (j), by inserting after ‘‘carry

11 out this section’’ the following: ‘‘and grant amounts

12 provided to a local affiliate of the organization or

13 consortia that is developing five or more dwellings in

14 connection with such grant amounts’’.

15 (d) TECHNICAL CORRECTIONS.—Section 11 of the

16 Housing Opportunity Program Extension Act of 1996 (42

17 U.S.C. 12805 note) is amended—

18 (1) in subsection (b)(4), by striking ‘‘Habitat

19 for Humanity International, its affiliates, and

20 other’’; and

21 (2) in subsection (e)(2), by striking ‘‘consoria’’

22 and inserting ‘‘consortia’’.
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1 TITLE III—SECTION 8

2 HOMEOWNERSHIP OPTION

3 SEC. 301. DOWNPAYMENT ASSISTANCE.

4 (a) AMENDMENTS.—Section 8(y) of the United

5 States Housing Act of 1937 (42 U.S.C. 1437f(y)) is

6 amended—

7 (1) by redesignating paragraph (7) as para8 graph (8); and

9 (2) by inserting after paragraph (6) the fol10 lowing new paragraph:

11 ‘‘(7) DOWNPAYMENT ASSISTANCE.—

12 ‘‘(A) AUTHORITY.—A public housing agen13 cy may, in lieu of providing monthly assistance

14 payments under this subsection on behalf of a

15 family eligible for such assistance and at the

16 discretion of the public housing agency, provide

17 assistance for the family in the form of a single

18 grant to be used only as a contribution toward

19 the downpayment required in connection with

20 the purchase of a dwelling for fiscal year 2000

21 and each fiscal year thereafter to the extent

22 provided in advance in appropriations Acts.

23 ‘‘(B) AMOUNT.—The amount of a down24 payment grant on behalf of an assisted family

25 may not exceed the amount that is equal to the
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1 sum of the assistance payments that would be

2 made during the first year of assistance on be3 half of the family, based upon the income of the

4 family at the time the grant is to be made.’’.

5 (b) EFFECTIVE DATE.—The amendments made by

6 subsection (a) shall take effect immediately after the

7 amendments made by section 555(c) of the Quality Hous8 ing and Work Responsibility Act of 1998 take effect pur9 suant to such section.

10 SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSIST11 ANCE FOR DISABLED FAMILIES.

12 (a) IN GENERAL.—A public housing agency providing

13 tenant-based assistance on behalf of an eligible family

14 under section 8 of the United States Housing Act of 1937

15 (42 U.S.C. 1437f) may provide assistance for a disabled

16 family that purchases a dwelling unit (including a dwelling

17 unit under a lease-purchase agreement) that will be owned

18 by one or more members of the disabled family and will

19 be occupied by the disabled family, if the disabled family—

20 (1) purchases the dwelling unit before the expi21 ration of the 3-year period beginning on the date

22 that the Secretary first implements the pilot pro23 gram under this section;

24 (2) demonstrates that the disabled family has

25 income from employment or other sources (including
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1 public assistance), as determined in accordance with

2 requirements of the Secretary, that is not less than

3 twice the payment standard established by the public

4 housing agency (or such other amount as may be es5 tablished by the Secretary);

6 (3) except as provided by the Secretary, dem7 onstrates at the time the disabled family initially re8 ceives tenant-based assistance under this section

9 that one or more adult members of the disabled fam10 ily have achieved employment for the period as the

11 Secretary shall require;

12 (4) participates in a homeownership and hous13 ing counseling program provided by the agency; and

14 (5) meets any other initial or continuing re15 quirements established by the public housing agency

16 in accordance with requirements established by the

17 Secretary.

18 (b) DETERMINATION OF AMOUNT OF ASSISTANCE.—

19 (1) IN GENERAL.—

20 (A) MONTHLY EXPENSES NOT EXCEEDING

21 PAYMENT STANDARD.—If the monthly home22 ownership expenses, as determined in accord23 ance with requirements established by the Sec24 retary, do not exceed the payment standard, the

25 monthly assistance payment shall be the
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1 amount by which the homeownership expenses

2 exceed the highest of the following amounts,

3 rounded to the nearest dollar:

4 (i) 30 percent of the monthly adjusted

5 income of the disabled family.

6 (ii) 10 percent of the monthly income

7 of the disabled family.

8 (iii) If the disabled family is receiving

9 payments for welfare assistance from a

10 public agency, and a portion of those pay11 ments, adjusted in accordance with the ac12 tual housing costs of the disabled family, is

13 specifically designated by that agency to

14 meet the housing costs of the disabled fam15 ily, the portion of those payments that is

16 so designated.

17 (B) MONTHLY EXPENSES EXCEED PAY18 MENT STANDARD.—If the monthly homeowner19 ship expenses, as determined in accordance with

20 requirements established by the Secretary, ex21 ceed the payment standard, the monthly assist22 ance payment shall be the amount by which the

23 applicable payment standard exceeds the high24 est of the amounts under clauses (i), (ii), and

25 (iii) of subparagraph (A).
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1 (2) CALCULATION OF AMOUNT.—

2 (A) LOW-INCOME FAMILIES.—A disabled

3 family that is a low-income family shall be eligi4 ble to receive 100 percent of the amount cal5 culated under paragraph (1).

6 (B) INCOME BETWEEN 81 AND 89 PERCENT

7 OF MEDIAN.—A disabled family whose income

8 is between 81 and 89 percent of the median for

9 the area shall be eligible to receive 66 percent

10 of the amount calculated under paragraph (1).

11 (C) INCOME BETWEEN 90 AND 99 PERCENT

12 OF MEDIAN.—A disabled family whose income

13 is between 90 and 99 percent of the median for

14 the area shall be eligible to receive 33 percent

15 of the amount calculated under paragraph (1).

16 (D) INCOME MORE THAN 99 PERCENT OF

17 MEDIAN.—A disabled family whose income is

18 more than 99 percent of the median for the

19 area shall not be eligible to receive assistance

20 under this section.

21 (c) INSPECTIONS AND CONTRACT CONDITIONS.—

22 (1) IN GENERAL.—Each contract for the pur23 chase of a dwelling unit to be assisted under this

24 section shall—
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1 (A) provide for pre-purchase inspection of

2 the dwelling unit by an independent profes3 sional; and

4 (B) require that any cost of necessary re5 pairs be paid by the seller.

6 (2) ANNUAL INSPECTIONS NOT REQUIRED.—

7 The requirement under subsection (o)(8)(A)(ii) of

8 section 8 of the United States Housing Act of 1937

9 for annual inspections shall not apply to dwelling

10 units assisted under this section.

11 (d) OTHER AUTHORITY OF THE SECRETARY.—The

12 Secretary may—

13 (1) limit the term of assistance for a disabled

14 family assisted under this section;

15 (2) provide assistance for a disabled family for

16 the entire term of a mortgage for a dwelling unit if

17 the disabled family remains eligible for such assist18 ance for such term; and

19 (3) modify the requirements of this section as

20 the Secretary determines to be necessary to make

21 appropriate adaptations for lease-purchase agree22 ments.

23 (e) ASSISTANCE PAYMENTS SENT TO LENDER.—The

24 Secretary shall remit assistance payments under this sec25 tion directly to the mortgagee of the dwelling unit pur-
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1 chased by the disabled family receiving such assistance

2 payments.

3 (f) INAPPLICABILITY OF CERTAIN PROVISIONS.—As4 sistance under this section shall not be subject to the re5 quirements of the following provisions:

6 (1) Subsection (c)(3)(B) of section 8 of the

7 United States Housing Act of 1937.

8 (2) Subsection (d)(1)(B)(i) of section 8 of the

9 United States Housing Act of 1937.

10 (3) Any other provisions of section 8 of the

11 United States Housing Act of 1937 governing max12 imum amounts payable to owners and amounts pay13 able by assisted families.

14 (4) Any other provisions of section 8 of the

15 United States Housing Act of 1937 concerning con16 tracts between public housing agencies and owners.

17 (5) Any other provisions of the United States

18 Housing Act of 1937 that are inconsistent with the

19 provisions of this section.

20 (g) REVERSION TO RENTAL STATUS.—

21 (1) NON-FHA MORTGAGES.—If a disabled fam22 ily receiving assistance under this section defaults

23 under a mortgage not insured under the National

24 Housing Act, the disabled family may not continue

25 to receive rental assistance under section 8 of the
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1 United States Housing Act of 1937 unless it com2 plies with requirements established by the Secretary.

3 (2) ALL MORTGAGES.—A disabled family receiv4 ing assistance under this section that defaults under

5 a mortgage may not receive assistance under this

6 section for occupancy of another dwelling unit owned

7 by 1 or more members of the disabled family.

8 (3) EXCEPTION.—This subsection shall not

9 apply if the Secretary determines that the disabled

10 family receiving assistance under this section de11 faulted under a mortgage due to catastrophic med12 ical reasons or due to the impact of a federally de13 clared major disaster or emergency.

14 (h) REGULATIONS.—Not later than 90 days after the

15 date of the enactment of this Act, the Secretary shall issue

16 regulations to implement this section. Such regulations

17 may not prohibit any public housing agency providing ten18 ant-based assistance on behalf of an eligible family under

19 section 8 of the United States Housing Act of 1937 from

20 participating in the pilot program under this section.

21 (i) DEFINITION OF DISABLED FAMILY.—For the

22 purposes of this section, the term ‘‘disabled family’’ has

23 the meaning given the term ‘‘person with disabilities’’ in

24 section 811(k)(2) of the Cranston-Gonzalez National Af25 fordable Housing Act (42 U.S.C. 8013(k)(2)).
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1 SEC. 303. FUNDING FOR PILOT PROGRAMS.

2 (a) AUTHORIZATION OF APPROPRIATIONS.—There is

3 authorized to be appropriated such sums as may be nec4 essary for fiscal year 2001 for assistance in connection

5 with the existing homeownership pilot programs carried

6 out under the demonstration program authorized under to

7 section 555(b) of the Quality Housing and Work Respon8 sibility Act of 1998 (Public Law 105–276; 112 Stat.

9 2613).

10 (b) USE.—Subject to subsection (c), amounts made

11 available pursuant to this section shall be used only

12 through such homeownership pilot programs to provide,

13 on behalf of families participating in such programs,

14 amounts for downpayments in connection with dwellings

15 purchased by such families using assistance made avail16 able under section 8(y) of the United States Housing Act

17 of 1937 (42 U.S.C. 1437f(y)). No such downpayment

18 grant may exceed 20 percent of the appraised value of the

19 dwelling purchased with assistance under such section

20 8(y).

21 (c) MATCHING REQUIREMENT.—The amount of as22 sistance made available under this section for any existing

23 homeownership pilot program may not exceed twice the

24 amount donated from sources other than this section for

25 use under the program for assistance described in sub26 section (b). Amounts donated from other sources may in-
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1 clude amounts from State housing finance agencies and

2 Neighborhood Housing Services of America.

3 TITLE IV—PRIVATE MORTGAGE

4 INSURANCE CANCELLATION

5 AND TERMINATION

6 SEC. 401. SHORT TITLE.

7 This title may be cited as the ‘‘Private Mortgage In8 surance Technical Corrections and Clarification Act’’.

9 SEC. 402. CHANGES IN AMORTIZATION SCHEDULE.

10 (a) TREATMENT OF ADJUSTABLE RATE MORT11 GAGES.—The Homeowners Protection Act of 1998 (12

12 U.S.C. 4901 et seq.) is amended—

13 (1) in section 2—

14 (A) in paragraph (2)(B)(i), by striking

15 ‘‘amortization schedules’’ and inserting ‘‘the

16 amortization schedule then in effect’’;

17 (B) in paragraph (16)(B), by striking

18 ‘‘amortization schedules’’ and inserting ‘‘the

19 amortization schedule then in effect’’;

20 (C) by redesignating paragraphs (6)

21 through (16) (as amended by the preceding pro22 visions of this paragraph) as paragraphs (8)

23 through (18), respectively; and

24 (D) by inserting after paragraph (5) the

25 following new paragraph:
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1 ‘‘(6) AMORTIZATION SCHEDULE THEN IN EF2 FECT.—The term ‘amortization schedule then in ef3 fect’ means, with respect to an adjustable rate mort4 gage, a schedule established at the time at which the

5 residential mortgage transaction is consummated or,

6 if such schedule has been changed or recalculated, is

7 the most recent schedule under the terms of the note

8 or mortgage, which shows—

9 ‘‘(A) the amount of principal and interest

10 that is due at regular intervals to retire the

11 principal balance and accrued interest over the

12 remaining amortization period of the loan; and

13 ‘‘(B) the unpaid balance of the loan after

14 each such scheduled payment is made.’’; and

15 (2) in section 3(f)(1)(B)(ii), by striking ‘‘amor16 tization schedules’’ and inserting ‘‘the amortization

17 schedule then in effect’’.

18 (b) TREATMENT OF BALLOON MORTGAGES.—Para19 graph (1) of section 2 of the Homeowners Protection Act

20 of 1998 (12 U.S.C. 4901(1)) is amended by adding at the

21 end the following new sentence: ‘‘A residential mortgage

22 that (A) does not fully amortize over the term of the obli23 gation, and (B) contains a conditional right to refinance

24 or modify the unamortized principal at the maturity date
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1 of the term, shall be considered to be an adjustable rate

2 mortgage for purposes of this Act.’’.

3 (c) TREATMENT OF LOAN MODIFICATIONS.—

4 (1) IN GENERAL.—Section 3 of the Home5 owners Protection Act of 1998 (12 U.S.C. 4902) is

6 amended—

7 (A) by redesignating subsections (d)

8 through (f) as subsections (e) through (g), re9 spectively; and

10 (B) by inserting after subsection (c) the

11 following new subsection:

12 ‘‘(d) TREATMENT OF LOAN MODIFICATIONS.—If a

13 mortgagor and mortgagee (or holder of the mortgage)

14 agree to a modification of the terms or conditions of a

15 loan pursuant to a residential mortgage transaction, the

16 cancellation date, termination date, or final termination

17 shall be recalculated to reflect the modified terms and con18 ditions of such loan.’’.

19 (2) CONFORMING AMENDMENTS.—Section 4(a)

20 of the Homeowners Protection Act of 1998 (12

21 U.S.C. 4903(a)) is amended—

22 (A) in paragraph (1)—

23 (i) in the matter preceding subpara24 graph (A), by striking ‘‘section 3(f)(1)’’

25 and inserting ‘‘section 3(g)(1)’’;
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1 (ii) in subparagraph (A)(ii)(IV), by

2 striking ‘‘section 3(f)’’ and inserting ‘‘sec3 tion 3(g)’’; and

4 (iii) in subparagraph (B)(iii), by strik5 ing ‘‘section 3(f)’’ and inserting ‘‘section

6 3(g)’’; and

7 (B) in paragraph (2), by striking ‘‘section

8 3(f)(1)’’ and inserting ‘‘section 3(g)(1)’’.

9 SEC. 403. DELETION OF AMBIGUOUS REFERENCES TO RESI10 DENTIAL MORTGAGES.

11 (a) TERMINATION OF PRIVATE MORTGAGE INSUR12 ANCE.—Section 3 of the Homeowners Protection Act of

13 1998 (12 U.S.C. 4902) is amended—

14 (1) in subsection (c), by inserting ‘‘on residen15 tial mortgage transactions’’ after ‘‘imposed’’; and

16 (2) in subsection (g) (as so redesignated by the

17 preceding provisions of this title)—

18 (A) in paragraph (1), in the matter pre19 ceding subparagraph (A), by striking ‘‘mort20 gage or’’;

21 (B) in paragraph (2), by striking ‘‘mort22 gage or’’; and

23 (C) in paragraph (3), by striking ‘‘mort24 gage or’’ and inserting ‘‘residential mortgage or

25 residential’’.
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1 (b) DISCLOSURE REQUIREMENTS.—Section 4 of the

2 Homeowners Protection Act of 1998 (12 U.S.C. 4903(a))

3 is amended—

4 (1) in subsection (a)—

5 (A) in paragraph (1)—

6 (i) by striking ‘‘mortgage or’’ the first

7 place it appears; and

8 (ii) by striking ‘‘mortgage or’’ the sec9 ond place it appears and inserting ‘‘resi10 dential’’; and

11 (B) in paragraph (2), by striking ‘‘mort12 gage or’’ and inserting ‘‘residential’’;

13 (2) in subsection (c), by striking ‘‘paragraphs

14 (1)(B) and (3) of subsection (a)’’ and inserting

15 ‘‘subsection (a)(3)’’; and

16 (3) in subsection (d), by inserting before the pe17 riod at the end the following: ‘‘, which disclosures

18 shall relate to the mortgagor’s rights under this

19 Act’’.

20 (c) DISCLOSURE REQUIREMENTS FOR LENDER-PAID

21 MORTGAGE INSURANCE.—Section 6 of the Homeowners

22 Protection Act of 1998 (12 U.S.C. 4905) is amended—

23 (1) in subsection (c)—

24 (A) in the matter preceding paragraph (1),

25 by striking ‘‘a residential mortgage or’’; and
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1 (B) in paragraph (2), by inserting ‘‘trans2 action’’ after ‘‘residential mortgage’’; and

3 (2) in subsection (d), by inserting ‘‘transaction’’

4 after ‘‘residential mortgage’’.

5 SEC. 404. CANCELLATION RIGHTS AFTER CANCELLATION

6 DATE.

7 Section 3 of the Homeowners Protection Act of 1998

8 (12 U.S.C. 4902) is amended—

9 (1) in subsection (a)—

10 (A) in the matter preceding paragraph (1),

11 by inserting after ‘‘cancellation date’’ the fol12 lowing: ‘‘or any later date that the mortgagor

13 fulfills all of the requirements under paragraphs

14 (1) through (4)’’;

15 (B) in paragraph (2), by striking ‘‘and’’ at

16 the end;

17 (C) by redesignating paragraph (3) as

18 paragraph (4); and

19 (D) by inserting after paragraph (2) the

20 following new paragraph:

21 ‘‘(3) is current on the payments required by the

22 terms of the residential mortgage transaction; and’’;

23 and

24 (2) in subsection (e)(1)(B) (as so redesignated

25 by the preceding provisions of this title), by striking
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1 ‘‘subsection (a)(3)’’ and inserting ‘‘subsection

2 (a)(4)’’.

3 SEC. 405. CLARIFICATION OF CANCELLATION AND TERMI4 NATION ISSUES AND LENDER PAID MORT5 GAGE INSURANCE DISCLOSURE REQUIRE6 MENTS.

7 (a) GOOD PAYMENT HISTORY.—Section 2(4) of the

8 Homeowners Protection Act of 1998 (12 U.S.C. 4901(4))

9 is amended—

10 (1) in subparagraph (A)—

11 (A) by inserting ‘‘the later of (i)’’ before

12 ‘‘the date’’; and

13 (B) by inserting ‘‘, or (ii) the date that the

14 mortgagor submits a request for cancellation

15 under section 3(a)(1)’’ before the semicolon;

16 and

17 (2) in subparagraph (B)—

18 (A) by inserting ‘‘the later of (i)’’ before

19 ‘‘the date’’; and

20 (B) by inserting ‘‘, or (ii) the date that the

21 mortgagor submits a request for cancellation

22 under section 3(a)(1)’’ before the period at the

23 end.
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1 (b) AUTOMATIC TERMINATION.—Paragraph (2) of

2 section 3(b) of the Homeowners Protection Act of 1998

3 (12 U.S.C. 4902(b)(2)) is amended to read as follows:

4 ‘‘(2) if the mortgagor is not current on the ter5 mination date, on the first day of the first month be6 ginning after the date that the mortgagor becomes

7 current on the payments required by the terms of

8 the residential mortgage transaction.’’

9 (c) PREMIUM PAYMENTS.—Section 3 of the Home10 owners Protection Act of 1998 (12 U.S.C. 4902) is

11 amended by adding at the end the following new sub12 section:

13 ‘‘(h) ACCRUED OBLIGATION FOR PREMIUM PAY14 MENTS.—The cancellation or termination under this sec15 tion of the private mortgage insurance of a mortgagor

16 shall not affect the rights of any mortgagee, servicer, or

17 mortgage insurer to enforce any obligation of such mort18 gagor for premium payments accrued prior to the date on

19 which such cancellation or termination occurred.’’.

20 SEC. 406. DEFINITIONS.

21 (a) REFINANCED.—Section 6(c)(1)(B)(ii) of the

22 Homeowners Protection Act of 1998 (12 U.S.C.

23 4905(c)(1)(B)(ii)) is amended by inserting after ‘‘refi24 nanced’’ the following: ‘‘(under the meaning given such

25 term in the regulations issued by the Board of Governors
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1 of the Federal Reserve System to carry out the Truth in

2 Lending Act (15 U.S.C. 1601 et seq.))’’.

3 (b) MIDPOINT OF THE AMORTIZATION PERIOD.—

4 Section 2 of the Homeowners Protection Act of 1998 (12

5 U.S.C. 4901) is amended by inserting after paragraph (6)

6 (as added by the preceding provisions of this title) the fol7 lowing new paragraph:

8 ‘‘(7) MIDPOINT OF THE AMORTIZATION PE9 RIOD.—The term ‘midpoint of the amortization pe10 riod’ means, with respect to a residential mortgage

11 transaction, the point in time that is halfway

12 through the period that begins upon the first day of

13 the amortization period established at the time a

14 residential mortgage transaction is consummated

15 and ends upon the completion of the entire period

16 over which the mortgage is scheduled to be amor17 tized.’’.

18 (c) ORIGINAL VALUE.—Section 2(12) of the Home19 owners Protection Act of 1998 (12 U.S.C. 4901(10)) (as

20 so redesignated by the preceding provisions of this title)

21 is amended—

22 (1) by inserting ‘‘transaction’’ after ‘‘a residen23 tial mortgage’’; and

24 (2) by adding at the end the following new sen25 tence: ‘‘In the case of a residential mortgage trans-
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1 action for refinancing the principal residence of the

2 mortgagor, such term means only the appraised

3 value relied upon by the mortgagee to approve the

4 refinance transaction.’’.

5 (d) PRINCIPAL RESIDENCE.—Section 2 of the Home6 owners Protection Act of 1998 (12 U.S.C. 4901) is

7 amended—

8 (1) in paragraph (14) (as so redesignated by

9 the preceding provisions of this title) by striking

10 ‘‘primary’’ and inserting ‘‘principal’’; and

11 (2) in paragraph (15) (as so redesignated by

12 the preceding provisions of this title) by striking

13 ‘‘primary’’ and inserting ‘‘principal’’.

14 TITLE V—NATIVE AMERICAN

15 HOMEOWNERSHIP

16 Subtitle A—Native American

17 Housing

18 SEC. 501. LANDS TITLE REPORT COMMISSION.

19 (a) ESTABLISHMENT.—Subject to sums being pro20 vided in advance in appropriations Acts, there is estab21 lished a Commission to be known as the Lands Title Re22 port Commission (hereafter in this section referred to as

23 the ‘‘Commission’’) to facilitate home loan mortgages on

24 Indian trust lands. The Commission will be subject to

25 oversight by the Committee on Banking and Financial
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1 Services of the House of Representatives and the Com2 mittee on Banking, Housing, and Urban Affairs of the

3 Senate.

4 (b) MEMBERSHIP.—

5 (1) APPOINTMENT.—The Commission shall be

6 composed of 12 members, appointed not later than

7 90 days after the date of the enactment of this Act

8 as follows:

9 (A) Four members shall be appointed by

10 the President.

11 (B) Four members shall be appointed by

12 the Chairperson of the Committee on Banking

13 and Financial Services of the House of Rep14 resentatives.

15 (C) Four members shall be appointed by

16 the Chairperson of the Committee on Banking,

17 Housing, and Urban Affairs of the Senate.

18 (2) QUALIFICATIONS.—

19 (A) MEMBERS OF TRIBES.—At all times,

20 not less than eight of the members of the Com21 mission shall be members of federally recog22 nized Indian tribes.

23 (B) EXPERIENCE IN LAND TITLE MAT24 TERS.—All members of the Commission shall
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1 have experience in and knowledge of land title

2 matters relating to Indian trust lands.

3 (3) CHAIRPERSON.—The Chairperson of the

4 Commission shall be one of the members of the

5 Commission appointed under paragraph (1)(C), as

6 elected by the members of the Commission.

7 (4) VACANCIES.—Any vacancy on the Commis8 sion shall not affect its powers, but shall be filled in

9 the manner in which the original appointment was

10 made.

11 (5) TRAVEL EXPENSES.—Members of the Com12 mission shall serve without pay, but each member

13 shall receive travel expenses, including per diem in

14 lieu of subsistence, in accordance with sections 5702

15 and 5703 of title 5, United States Code.

16 (c) INITIAL MEETING.—The Chairperson of the Com17 mission shall call the initial meeting of the Commission.

18 Such meeting shall be held within 30 days after the Chair19 person of the Commission determines that sums sufficient

20 for the Commission to carry out its duties under this Act

21 have been appropriated for such purpose.

22 (d) DUTIES.—The Commission shall analyze the sys23 tem of the Bureau of Indian Affairs of the Department

24 of the Interior for maintaining land ownership records and

25 title documents and issuing certified title status reports
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1 relating to Indian trust lands and, pursuant to such anal2 ysis, determine how best to improve or replace the

3 system—

4 (1) to ensure prompt and accurate responses to

5 requests for title status reports;

6 (2) to eliminate any backlog of requests for title

7 status reports; and

8 (3) to ensure that the administration of the sys9 tem will not in any way impair or restrict the ability

10 of Native Americans to obtain conventional loans for

11 purchase of residences located on Indian trust lands,

12 including any actions necessary to ensure that the

13 system will promptly be able to meet future demands

14 for certified title status reports, taking into account

15 the anticipated complexity and volume of such re16 quests.

17 (e) REPORT.—Not later than the date of the termi18 nation of the Commission under subsection (h), the Com19 mission shall submit a report to the Committee on Bank20 ing and Financial Services of the House of Representa21 tives and the Committee on Banking, Housing, and Urban

22 Affairs of the Senate describing the analysis and deter23 minations made pursuant to subsection (d).

24 (f) POWERS.—
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1 (1) HEARINGS AND SESSIONS.—The Commis2 sion may, for the purpose of carrying out this sec3 tion, hold hearings, sit and act at times and places,

4 take testimony, and receive evidence as the Commis5 sion considers appropriate.

6 (2) STAFF OF FEDERAL AGENCIES.—Upon re7 quest of the Commission, the head of any Federal

8 department or agency may detail, on a reimbursable

9 basis, any of the personnel of that department or

10 agency to the Commission to assist it in carrying out

11 its duties under this section.

12 (3) OBTAINING OFFICIAL DATA.—The Commis13 sion may secure directly from any department or

14 agency of the United States information necessary

15 to enable it to carry out this section. Upon request

16 of the Chairperson of the Commission, the head of

17 that department or agency shall furnish that infor18 mation to the Commission.

19 (4) MAILS.—The Commission may use the

20 United States mails in the same manner and under

21 the same conditions as other departments and agen22 cies of the United States.

23 (5) ADMINISTRATIVE SUPPORT SERVICES.—

24 Upon the request of the Commission, the Adminis25 trator of General Services shall provide to the Com-
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1 mission, on a reimbursable basis, the administrative

2 support services necessary for the Commission to

3 carry out its duties under this section.

4 (6) STAFF.—The Commission may appoint per5 sonnel as it considers appropriate, subject to the

6 provisions of title 5, United States Code, governing

7 appointments in the competitive service, and shall

8 pay such personnel in accordance with the provisions

9 of chapter 51 and subchapter III of chapter 53 of

10 that title relating to classification and General

11 Schedule pay rates.

12 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

13 authorized to be appropriated to carry out this section

14 such sums as may be necessary, and any amounts appro15 priated pursuant to this subsection shall remain available

16 until expended.

17 (h) TERMINATION.—The Commission shall terminate

18 1 year after the date of the initial meeting of the Commis19 sion.

20 SEC. 502. LOAN GUARANTEES.

21 Section 184(i) of the Housing and Community Devel22 opment Act of 1992 (12 U.S.C. 1715z–13a(i)) is

23 amended—

24 (1) in paragraph (5), by striking subparagraph

25 (C) and inserting the following new subparagraph:
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1 ‘‘(C) LIMITATION ON OUTSTANDING AG2 GREGATE PRINCIPAL AMOUNT.—Subject to the

3 limitations in subparagraphs (A) and (B), the

4 Secretary may enter into commitments to guar5 antee loans under this section in each fiscal

6 year with an aggregate outstanding principal

7 amount not exceeding such amount as may be

8 provided in appropriation Acts for such fiscal

9 year.’’; and

10 (2) in paragraph (7), by striking ‘‘each of fiscal

11 years 1997, 1998, 1999, 2000, and 2001’’ and in12 serting ‘‘each fiscal year’’.

13 SEC. 503. NATIVE AMERICAN HOUSING ASSISTANCE.

14 (a) RESTRICTION ON WAIVER AUTHORITY.—

15 (1) IN GENERAL.—Section 101(b)(2) of the Na16 tive American Housing Assistance and Self-Deter17 mination Act of 1996 (25 U.S.C. 4111(b)(2)) is

18 amended by striking ‘‘if the Secretary’’ and all that

19 follows through the period at the end and inserting

20 the following: ‘‘for a period of not more than 90

21 days, if the Secretary determines that an Indian

22 tribe has not complied with, or is unable to comply

23 with, those requirements due to exigent cir24 cumstances beyond the control of the Indian tribe.’’.
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1 (2) LOCAL COOPERATION AGREEMENT.—Sec2 tion 101(c) of the Native American Housing Assist3 ance and Self-Determination Act of 1996 (25 U.S.C.

4 4111(c)) is amended by adding at the end the fol5 lowing: ‘‘The Secretary may waive the requirements

6 of this subsection and subsection (d) if the recipient

7 has made a good faith effort to fulfill the require8 ments of this subsection and subsection (d) and

9 agrees to make payments in lieu of taxes to the ap10 propriate taxing authority in an amount consistent

11 with the requirements of subsection (d)(2) until such

12 time as the matter of making such payments has

13 been resolved in accordance with subsection (d).’’.

14 (b) ASSISTANCE TO FAMILIES THAT ARE NOT LOW15 INCOME.—Section 102(c) of the Native American Housing

16 Assistance and Self-Determination Act of 1996 (25 U.S.C.

17 4112(c)) is amended by adding at the end the following:

18 ‘‘(6) CERTAIN FAMILIES.—With respect to as19 sistance provided under section 201(b)(2) by a re20 cipient to Indian families that are not low-income

21 families, evidence that there is a need for housing

22 for each such family during that period that cannot

23 reasonably be met without such assistance.’’.

24 (c) ELIMINATION OF WAIVER AUTHORITY FOR

25 SMALL TRIBES.—Section 102 of the Native American
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1 Housing Assistance and Self-Determination Act of 1996

2 (25 U.S.C. 4112) is amended—

3 (1) by striking subsection (f); and

4 (2) by redesignating subsection (g) as sub5 section (f).

6 (d) ENVIRONMENTAL COMPLIANCE.—Section 105 of

7 the Native American Housing Assistance and Self-Deter8 mination Act of 1996 (25 U.S.C. 4115) is amended by

9 adding at the end the following:

10 ‘‘(d) ENVIRONMENTAL COMPLIANCE.—The Secretary

11 may waive the requirements under this section if the Sec12 retary determines that a failure on the part of a recipient

13 to comply with provisions of this section—

14 ‘‘(1) will not frustrate the goals of the National

15 Environmental Policy Act of 1969 (42 U.S.C. 4331

16 et seq.) or any other provision of law that furthers

17 the goals of that Act;

18 ‘‘(2) does not threaten the health or safety of

19 the community involved by posing an immediate or

20 long-term hazard to residents of that community;

21 ‘‘(3) is a result of inadvertent error, including

22 an incorrect or incomplete certification provided

23 under subsection (c)(1); and

24 ‘‘(4) may be corrected through the sole action

25 of the recipient.’’.
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1 (e) OVERSIGHT.—

2 (1) REPAYMENT.—Section 209 of the Native

3 American Housing Assistance and Self-Determina4 tion Act of 1996 (25 U.S.C. 4139) is amended to

5 read as follows:

6 ‘‘SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING

7 REQUIREMENT.

8 ‘‘If a recipient uses grant amounts to provide afford9 able housing under this title, and at any time during the

10 useful life of the housing the recipient does not comply

11 with the requirement under section 205(a)(2), the Sec12 retary shall take appropriate action under section

13 401(a).’’.

14 (2) AUDITS AND REVIEWS.—Section 405 of the

15 Native American Housing Assistance and Self-De16 termination Act of 1996 (25 U.S.C. 4165) is amend17 ed to read as follows:

18 ‘‘SEC. 405. REVIEW AND AUDIT BY SECRETARY.

19 ‘‘(a) REQUIREMENTS UNDER CHAPTER 75 OF TITLE

20 31, UNITED STATES CODE.—An entity designated by an

21 Indian tribe as a housing entity shall be treated, for pur22 poses of chapter 75 of title 31, United States Code, as

23 a non-Federal entity that is subject to the audit require24 ments that apply to non-Federal entities under that chap25 ter.
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1 ‘‘(b) ADDITIONAL REVIEWS AND AUDITS.—

2 ‘‘(1) IN GENERAL.—In addition to any audit or

3 review under subsection (a), to the extent the Sec4 retary determines such action to be appropriate, the

5 Secretary may conduct an audit or review of a re6 cipient in order to—

7 ‘‘(A) determine whether the recipient—

8 ‘‘(i) has carried out—

9 ‘‘(I) eligible activities in a timely

10 manner; and

11 ‘‘(II) eligible activities and cer12 tification in accordance with this Act

13 and other applicable law;

14 ‘‘(ii) has a continuing capacity to

15 carry out eligible activities in a timely

16 manner; and

17 ‘‘(iii) is in compliance with the Indian

18 housing plan of the recipient; and

19 ‘‘(B) verify the accuracy of information

20 contained in any performance report submitted

21 by the recipient under section 404.

22 ‘‘(2) ON-SITE VISITS.—To the extent prac23 ticable, the reviews and audits conducted under this

24 subsection shall include on-site visits by the appro-
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•HR 5640 EH

1 priate official of the Department of Housing and

2 Urban Development.

3 ‘‘(c) REVIEW OF REPORTS.—

4 ‘‘(1) IN GENERAL.—The Secretary shall provide

5 each recipient that is the subject of a report made

6 by the Secretary under this section notice that the

7 recipient may review and comment on the report

8 during a period of not less than 30 days after the

9 date on which notice is issued under this paragraph.

10 ‘‘(2) PUBLIC AVAILABILITY.—After taking into

11 consideration any comments of the recipient under

12 paragraph (1), the Secretary—

13 ‘‘(A) may revise the report; and

14 ‘‘(B) not later than 30 days after the date

15 on which those comments are received, shall

16 make the comments and the report (with any

17 revisions made under subparagraph (A)) readily

18 available to the public.

19 ‘‘(d) EFFECT OF REVIEWS.—Subject to section

20 401(a), after reviewing the reports and audits relating to

21 a recipient that are submitted to the Secretary under this

22 section, the Secretary may adjust the amount of a grant

23 made to a recipient under this Act in accordance with the

24 findings of the Secretary with respect to those reports and

25 audits.’’.
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1 (f) ALLOCATION FORMULA.—Section 302(d)(1) of

2 the Native American Housing Assistance and Self-Deter3 mination Act of 1996 (25 U.S.C. 4152(d)(1)) is

4 amended—

5 (1) by striking ‘‘The formula,’’ and inserting

6 the following:

7 ‘‘(A) IN GENERAL.—Except with respect to

8 an Indian tribe described in subparagraph (B),

9 the formula’’; and

10 (2) by adding at the end the following:

11 ‘‘(B) CERTAIN INDIAN TRIBES.—With re12 spect to fiscal year 2001 and each fiscal year

13 thereafter, for any Indian tribe with an Indian

14 housing authority that owns or operates fewer

15 than 250 public housing units, the formula

16 shall provide that if the amount provided for a

17 fiscal year in which the total amount made

18 available for assistance under this Act is equal

19 to or greater than the amount made available

20 for fiscal year 1996 for assistance for the oper21 ation and modernization of the public housing

22 referred to in subparagraph (A), then the

23 amount provided to that Indian tribe as mod24 ernization assistance shall be equal to the aver25 age annual amount of funds provided to the In-
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•HR 5640 EH

1 dian tribe (other than funds provided as emer2 gency assistance) under the assistance program

3 under section 14 of the United States Housing

4 Act of 1937 (42 U.S.C. 1437l) for the period

5 beginning with fiscal year 1992 and ending

6 with fiscal year 1997.’’.

7 (g) HEARING REQUIREMENT.—Section 401(a) of the

8 Native American Housing Assistance and Self-Determina9 tion Act of 1996 (25 U.S.C. 4161(a)) is amended—

10 (1) by redesignating paragraphs (1) through

11 (4) as subparagraphs (A) through (D), respectively,

12 and realigning such subparagraphs (as so redesig13 nated) so as to be indented 4 ems from the left mar14 gin;

15 (2) by striking ‘‘Except as provided’’ and in16 serting the following:

17 ‘‘(1) IN GENERAL.—Except as provided’’;

18 (3) by striking ‘‘If the Secretary takes an ac19 tion under paragraph (1), (2), or (3)’’ and inserting

20 the following:

21 ‘‘(2) CONTINUANCE OF ACTIONS.—If the Sec22 retary takes an action under subparagraph (A), (B),

23 or (C) of paragraph (1)’’; and

24 (4) by adding at the end the following:

25 ‘‘(3) EXCEPTION FOR CERTAIN ACTIONS.—
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•HR 5640 EH

1 ‘‘(A) IN GENERAL.—Notwithstanding any

2 other provision of this subsection, if the Sec3 retary makes a determination that the failure of

4 a recipient of assistance under this Act to com5 ply substantially with any material provision (as

6 that term is defined by the Secretary) of this

7 Act is resulting, and would continue to result,

8 in a continuing expenditure of Federal funds in

9 a manner that is not authorized by law, the

10 Secretary may take an action described in para11 graph (1)(C) before conducting a hearing.

12 ‘‘(B) PROCEDURAL REQUIREMENT.—If the

13 Secretary takes an action described in subpara14 graph (A), the Secretary shall—

15 ‘‘(i) provide notice to the recipient at

16 the time that the Secretary takes that ac17 tion; and

18 ‘‘(ii) conduct a hearing not later than

19 60 days after the date on which the Sec20 retary provides notice under clause (i).

21 ‘‘(C) DETERMINATION.—Upon completion

22 of a hearing under this paragraph, the Sec23 retary shall make a determination regarding

24 whether to continue taking the action that is
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•HR 5640 EH

1 the subject of the hearing, or take another ac2 tion under this subsection.’’.

3 (h) PERFORMANCE AGREEMENT TIME LIMIT.—Sec4 tion 401(b) of the Native American Housing Assistance

5 and Self-Determination Act of 1996 (25 U.S.C. 4161(b))

6 is amended—

7 (1) by striking ‘‘If the Secretary’’ and inserting

8 the following:

9 ‘‘(1) IN GENERAL.—If the Secretary’’;

10 (2) by striking ‘‘(1) is not’’ and inserting the

11 following:

12 ‘‘(A) is not’’;

13 (3) by striking ‘‘(2) is a result’’ and inserting

14 the following:

15 ‘‘(B) is a result’’;

16 (4) in the flush material following paragraph

17 (1)(B), as redesignated by paragraph (3) of this

18 subsection—

19 (A) by realigning such material so as to be

20 indented 2 ems from the left margin; and

21 (B) by inserting before the period at the

22 end the following: ‘‘, if the recipient enters into

23 a performance agreement with the Secretary

24 that specifies the compliance objectives that the

25 recipient will be required to achieve by the ter-
55

•HR 5640 EH

1 mination date of the performance agreement’’;

2 and

3 (5) by adding at the end the following:

4 ‘‘(2) PERFORMANCE AGREEMENT.—The period

5 of a performance agreement described in paragraph

6 (1) shall be for 1 year.

7 ‘‘(3) REVIEW.—Upon the termination of a per8 formance agreement entered into under paragraph

9 (1), the Secretary shall review the performance of

10 the recipient that is a party to the agreement.

11 ‘‘(4) EFFECT OF REVIEW.—If, on the basis of

12 a review under paragraph (3), the Secretary deter13 mines that the recipient—

14 ‘‘(A) has made a good faith effort to meet

15 the compliance objectives specified in the agree16 ment, the Secretary may enter into an addi17 tional performance agreement for the period

18 specified in paragraph (2); and

19 ‘‘(B) has failed to make a good faith effort

20 to meet applicable compliance objectives, the

21 Secretary shall determine the recipient to have

22 failed to comply substantially with this Act, and

23 the recipient shall be subject to an action under

24 subsection (a).’’.
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1 (i) LABOR STANDARDS.—Section 104(b) of the Na2 tive American Housing Assistance and Self-Determination

3 Act of 1996 (25 U.S.C. 4114(b) is amended—

4 (1) in paragraph (1), by striking ‘‘Davis-Bacon

5 Act (40 U.S.C. 276a–276a–5)’’ and inserting ‘‘Act

6 of March 3, 1931 (commonly known as the Davis7 Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C

8 276a et seq.)’’; and

9 (2) by adding at the end the following new

10 paragraph:

11 ‘‘(3) APPLICATION OF TRIBAL LAWS.—Para12 graph (1) shall not apply to any contract or agree13 ment for assistance, sale, or lease pursuant to this

14 Act, if such contract or agreement is otherwise cov15 ered by one or more laws or regulations adopted by

16 an Indian tribe that requires the payment of not less

17 than prevailing wages, as determined by the Indian

18 tribe.’’.

19 (j) TECHNICAL AND CONFORMING AMENDMENTS.—

20 (1) TABLE OF CONTENTS.—Section 1(b) of the

21 Native American Housing Assistance and Self-De22 termination Act of 1996 (25 U.S.C. 4101 note) is

23 amended in the table of contents—

24 (A) by striking the item relating to section

25 206; and
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•HR 5640 EH

1 (B) by striking the item relating to section

2 209 and inserting the following:

‘‘209. Noncompliance with affordable housing requirement.’’.

3 (2) CERTIFICATION OF COMPLIANCE WITH SUB4 SIDY LAYERING REQUIREMENTS.—Section 206 of

5 the Native American Housing Assistance and Self6 Determination Act of 1996 (25 U.S.C. 4136) is re7 pealed.

8 (3) TERMINATIONS.—Section 502(a) of the Na9 tive American Housing Assistance and Self-Deter10 mination Act of 1996 (25 U.S.C. 4181(a)) is amend11 ed by adding at the end the following: ‘‘Any housing

12 that is the subject of a contract for tenant-based as13 sistance between the Secretary and an Indian hous14 ing authority that is terminated under this section

15 shall, for the following fiscal year and each fiscal

16 year thereafter, be considered to be a dwelling unit

17 under section 302(b)(1).’’.

18 Subtitle B—Native Hawaiian

19 Housing

20 SEC. 511. SHORT TITLE.

21 This subtitle may be cited as the ‘‘Hawaiian Home22 lands Homeownership Act of 2000’’.

23 SEC. 512. FINDINGS.

24 The Congress finds that—
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•HR 5640 EH

1 (1) the United States has undertaken a respon2 sibility to promote the general welfare of the United

3 States by—

4 (A) employing its resources to remedy the

5 unsafe and unsanitary housing conditions and

6 the acute shortage of decent, safe, and sanitary

7 dwellings for families of lower income; and

8 (B) developing effective partnerships with

9 governmental and private entities to accomplish

10 the objectives referred to in subparagraph (A);

11 (2) the United States has a special responsi12 bility for the welfare of the Native peoples of the

13 United States, including Native Hawaiians;

14 (3) pursuant to the provisions of the Hawaiian

15 Homes Commission Act, 1920 (42 Stat. 108 et

16 seq.), the United States set aside 200,000 acres of

17 land in the Federal territory that later became the

18 State of Hawaii in order to establish a homeland for

19 the native people of Hawaii—Native Hawaiians;

20 (4) despite the intent of Congress in 1920 to

21 address the housing needs of Native Hawaiians

22 through the enactment of the Hawaiian Homes

23 Commission Act, 1920 (42 Stat. 108 et seq.), Native

24 Hawaiians eligible to reside on the Hawaiian home

25 lands have been foreclosed from participating in
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•HR 5640 EH

1 Federal housing assistance programs available to all

2 other eligible families in the United States;

3 (5) although Federal housing assistance pro4 grams have been administered on a racially neutral

5 basis in the State of Hawaii, Native Hawaiians con6 tinue to have the greatest unmet need for housing

7 and the highest rates of overcrowding in the United

8 States;

9 (6) among the Native American population of

10 the United States, Native Hawaiians experience the

11 highest percentage of housing problems in the

12 United States, as the percentage—

13 (A) of housing problems in the Native Ha14 waiian population is 49 percent, as compared

15 to—

16 (i) 44 percent for American Indian

17 and Alaska Native households in Indian

18 country; and

19 (ii) 27 percent for all other house20 holds in the United States; and

21 (B) overcrowding in the Native Hawaiian

22 population is 36 percent as compared to 3 per23 cent for all other households in the United

24 States;
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1 (7) among the Native Hawaiian population, the

2 needs of Native Hawaiians, as that term is defined

3 in section 801 of the Native American Housing As4 sistance and Self-Determination Act of 1996 (as

5 added by this subtitle), eligible to reside on the Ha6 waiian Home Lands are the most severe, as—

7 (A) the percentage of overcrowding in Na8 tive Hawaiian households on the Hawaiian

9 Home Lands is 36 percent; and

10 (B) approximately 13,000 Native Hawai11 ians, which constitute 95 percent of the Native

12 Hawaiians who are eligible to reside on the Ha13 waiian Home Lands, are in need of housing;

14 (8) applying the Department of Housing and

15 Urban Development guidelines—

16 (A) 70.8 percent of Native Hawaiians who

17 either reside or who are eligible to reside on the

18 Hawaiian Home Lands have incomes that fall

19 below the median family income; and

20 (B) 50 percent of Native Hawaiians who

21 either reside or who are eligible to reside on the

22 Hawaiian Home Lands have incomes below 30

23 percent of the median family income;

(9) 1 24 ⁄3 of those Native Hawaiians who are eligi25 ble to reside on the Hawaiian Home Lands pay
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•HR 5640 EH

1 more than 30 percent of their income for shelter,

and 1 2 ⁄2 of those Native Hawaiians face overcrowding;

3 (10) the extraordinarily severe housing needs of

4 Native Hawaiians demonstrate that Native Hawai5 ians who either reside on, or are eligible to reside on,

6 Hawaiian Home Lands have been denied equal ac7 cess to Federal low-income housing assistance pro8 grams available to other qualified residents of the

9 United States, and that a more effective means of

10 addressing their housing needs must be authorized;

11 (11) consistent with the recommendations of

12 the National Commission on American Indian, Alas13 ka Native, and Native Hawaiian Housing, and in

14 order to address the continuing prevalence of ex15 traordinarily severe housing needs among Native

16 Hawaiians who either reside or are eligible to reside

17 on the Hawaiian Home Lands, Congress finds it

18 necessary to extend the Federal low-income housing

19 assistance available to American Indians and Alaska

20 Natives under the Native American Housing Assist21 ance and Self-Determination Act of 1996 (25 U.S.C.

22 4101 et seq.) to those Native Hawaiians;

23 (12) under the treatymaking power of the

24 United States, Congress had the constitutional au25 thority to confirm a treaty between the United
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1 States and the government that represented the Ha2 waiian people, and from 1826 until 1893, the United

3 States recognized the independence of the Kingdom

4 of Hawaii, extended full diplomatic recognition to

5 the Hawaiian Government, and entered into treaties

6 and conventions with the Hawaiian monarchs to gov7 ern commerce and navigation in 1826, 1842, 1849,

8 1875, and 1887;

9 (13) the United States has recognized and re10 affirmed that—

11 (A) Native Hawaiians have a cultural, his12 toric, and land-based link to the indigenous peo13 ple who exercised sovereignty over the Hawaiian

14 Islands, and that group has never relinquished

15 its claims to sovereignty or its sovereign lands;

16 (B) Congress does not extend services to

17 Native Hawaiians because of their race, but be18 cause of their unique status as the indigenous

19 people of a once sovereign nation as to whom

20 the United States has established a trust rela21 tionship;

22 (C) Congress has also delegated broad au23 thority to administer a portion of the Federal

24 trust responsibility to the State of Hawaii;
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1 (D) the political status of Native Hawai2 ians is comparable to that of American Indians

3 and Alaska Natives; and

4 (E) the aboriginal, indigenous people of

5 the United States have—

6 (i) a continuing right to autonomy in

7 their internal affairs; and

8 (ii) an ongoing right of self-deter9 mination and self-governance that has

10 never been extinguished;

11 (14) the political relationship between the

12 United States and the Native Hawaiian people has

13 been recognized and reaffirmed by the United States

14 as evidenced by the inclusion of Native Hawaiians

15 in—

16 (A) the Native American Programs Act of

17 1974 (42 U.S.C. 2291 et seq.);

18 (B) the American Indian Religious Free19 dom Act (42 U.S.C. 1996 et seq.);

20 (C) the National Museum of the American

21 Indian Act (20 U.S.C. 80q et seq.);

22 (D) the Native American Graves Protec23 tion and Repatriation Act (25 U.S.C. 3001 et

24 seq.);
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1 (E) the National Historic Preservation Act

2 (16 U.S.C. 470 et seq.);

3 (F) the Native American Languages Act of

4 1992 (106 Stat. 3434);

5 (G) the American Indian, Alaska Native

6 and Native Hawaiian Culture and Arts Devel7 opment Act (20 U.S.C. 4401 et seq.);

8 (H) the Job Training Partnership Act (29

9 U.S.C. 1501 et seq.); and

10 (I) the Older Americans Act of 1965 (42

11 U.S.C. 3001 et seq.); and

12 (15) in the area of housing, the United States

13 has recognized and reaffirmed the political relation14 ship with the Native Hawaiian people through—

15 (A) the enactment of the Hawaiian Homes

16 Commission Act, 1920 (42 Stat. 108 et seq.),

17 which set aside approximately 200,000 acres of

18 public lands that became known as Hawaiian

19 Home Lands in the Territory of Hawaii that

20 had been ceded to the United States for home21 steading by Native Hawaiians in order to reha22 bilitate a landless and dying people;

23 (B) the enactment of the Act entitled ‘‘An

24 Act to provide for the admission of the State of
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1 Hawaii into the Union’’, approved March 18,

2 1959 (73 Stat. 4)—

3 (i) by ceding to the State of Hawaii

4 title to the public lands formerly held by

5 the United States, and mandating that

6 those lands be held in public trust, for the

7 betterment of the conditions of Native Ha8 waiians, as that term is defined in section

9 201 of the Hawaiian Homes Commission

10 Act, 1920 (42 Stat. 108 et seq.); and

11 (ii) by transferring the United States

12 responsibility for the administration of Ha13 waiian Home Lands to the State of Ha14 waii, but retaining the authority to enforce

15 the trust, including the exclusive right of

16 the United States to consent to any actions

17 affecting the lands which comprise the cor18 pus of the trust and any amendments to

19 the Hawaiian Homes Commission Act,

20 1920 (42 Stat. 108 et seq.), enacted by the

21 legislature of the State of Hawaii affecting

22 the rights of beneficiaries under the Act;

23 (C) the authorization of mortgage loans in24 sured by the Federal Housing Administration

25 for the purchase, construction, or refinancing of
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1 homes on Hawaiian Home Lands under the Na2 tional Housing Act (Public Law 479; 73d Con3 gress; 12 U.S.C. 1701 et seq.);

4 (D) authorizing Native Hawaiian represen5 tation on the National Commission on Amer6 ican Indian, Alaska Native, and Native Hawai7 ian Housing under Public Law 101–235;

8 (E) the inclusion of Native Hawaiians in

9 the definition under section 3764 of title 38,

10 United States Code, applicable to subchapter V

11 of chapter 37 of title 38, United States Code

12 (relating to a housing loan program for Native

13 American veterans); and

14 (F) the enactment of the Hawaiian Home

15 Lands Recovery Act (109 Stat. 357; 48 U.S.C.

16 491, note prec.) which establishes a process for

17 the conveyance of Federal lands to the Depart18 ment of Hawaiian Homes Lands that are equiv19 alent in value to lands acquired by the United

20 States from the Hawaiian Home Lands inven21 tory.

22 SEC. 513. HOUSING ASSISTANCE.

23 The Native American Housing Assistance and Self24 Determination Act of 1996 (25 U.S.C. 4101 et seq.) is

25 amended by adding at the end the following:
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1 ‘‘TITLE VIII—HOUSING ASSIST2 ANCE FOR NATIVE HAWAI3 IANS

4 ‘‘SEC. 801. DEFINITIONS.

5 ‘‘In this title:

6 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS;

7 DEPARTMENT.—The term ‘Department of Hawaiian

8 Home Lands’ or ‘Department’ means the agency or

9 department of the government of the State of Ha10 waii that is responsible for the administration of the

11 Hawaiian Homes Commission Act, 1920 (42 Stat.

12 108 et seq.).

13 ‘‘(2) DIRECTOR.—The term ‘Director’ means

14 the Director of the Department of Hawaiian Home

15 Lands.

16 ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMI17 LIES.—

18 ‘‘(A) IN GENERAL.—The term ‘elderly

19 family’ or ‘near-elderly family’ means a family

20 whose head (or his or her spouse), or whose sole

21 member, is—

22 ‘‘(i) for an elderly family, an elderly

23 person; or

24 ‘‘(ii) for a near-elderly family, a near25 elderly person.
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1 ‘‘(B) CERTAIN FAMILIES INCLUDED.—The

2 term ‘elderly family’ or ‘near-elderly family’

3 includes—

4 ‘‘(i) two or more elderly persons or

5 near-elderly persons, as the case may be,

6 living together; and

7 ‘‘(ii) one or more persons described in

8 clause (i) living with one or more persons

9 determined under the housing plan to be

10 essential to their care or well-being.

11 ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha12 waiian Home Lands’ means lands that—

13 ‘‘(A) have the status as Hawaiian home

14 lands under section 204 of the Hawaiian

15 Homes Commission Act, 1920(42 Stat. 110); or

16 ‘‘(B) are acquired pursuant to that Act.

17 ‘‘(5) HOUSING AREA.—The term ‘housing area’

18 means an area of Hawaiian Home Lands with re19 spect to which the Department of Hawaiian Home

20 Lands is authorized to provide assistance for afford21 able housing under this Act.

22 ‘‘(6) HOUSING ENTITY.—The term ‘housing en23 tity’ means the Department of Hawaiian Home

24 Lands.
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1 ‘‘(7) HOUSING PLAN.—The term ‘housing plan’

2 means a plan developed by the Department of Ha3 waiian Home Lands.

4 ‘‘(8) MEDIAN INCOME.—The term ‘median in5 come’ means, with respect to an area that is a Ha6 waiian housing area, the greater of—

7 ‘‘(A) the median income for the Hawaiian

8 housing area, which shall be determined by the

9 Secretary; or

10 ‘‘(B) the median income for the State of

11 Hawaii.

12 ‘‘(9) NATIVE HAWAIIAN.—The term ‘Native

13 Hawaiian’ means any individual who is—

14 ‘‘(A) a citizen of the United States; and

15 ‘‘(B) a descendant of the aboriginal people,

16 who, prior to 1778, occupied and exercised sov17 ereignty in the area that currently constitutes

18 the State of Hawaii, as evidenced by—

19 ‘‘(i) genealogical records;

20 ‘‘(ii) verification by kupuna (elders) or

21 kama’aina (long-term community resi22 dents); or

23 ‘‘(iii) birth records of the State of Ha24 waii.
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1 ‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING

2 ACTIVITIES.

3 ‘‘(a) GRANT AUTHORITY.—For each fiscal year, the

4 Secretary shall (to the extent amounts are made available

5 to carry out this title) make a grant under this title to

6 the Department of Hawaiian Home Lands to carry out

7 affordable housing activities for Native Hawaiian families

8 who are eligible to reside on the Hawaiian Home Lands.

9 ‘‘(b) PLAN REQUIREMENT.—

10 ‘‘(1) IN GENERAL.—The Secretary may make a

11 grant under this title to the Department of Hawai12 ian Home Lands for a fiscal year only if—

13 ‘‘(A) the Director has submitted to the

14 Secretary a housing plan for that fiscal year;

15 and

16 ‘‘(B) the Secretary has determined under

17 section 804 that the housing plan complies with

18 the requirements of section 803.

19 ‘‘(2) WAIVER.—The Secretary may waive the

20 applicability of the requirements under paragraph

21 (1), in part, if the Secretary finds that the Depart22 ment of Hawaiian Home Lands has not complied or

23 cannot comply with those requirements due to cir24 cumstances beyond the control of the Department of

25 Hawaiian Home Lands.
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1 ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES

2 UNDER PLAN.—Except as provided in subsection (e),

3 amounts provided under a grant under this section may

4 be used only for affordable housing activities under this

5 title that are consistent with a housing plan approved

6 under section 804.

7 ‘‘(d) ADMINISTRATIVE EXPENSES.—

8 ‘‘(1) IN GENERAL.—The Secretary shall, by

9 regulation, authorize the Department of Hawaiian

10 Home Lands to use a percentage of any grant

11 amounts received under this title for any reasonable

12 administrative and planning expenses of the Depart13 ment relating to carrying out this title and activities

14 assisted with those amounts.

15 ‘‘(2) ADMINISTRATIVE AND PLANNING EX16 PENSES.—The administrative and planning expenses

17 referred to in paragraph (1) include—

18 ‘‘(A) costs for salaries of individuals en19 gaged in administering and managing afford20 able housing activities assisted with grant

21 amounts provided under this title; and

22 ‘‘(B) expenses incurred in preparing a

23 housing plan under section 803.

24 ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Direc25 tor shall make all reasonable efforts, consistent with the
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1 purposes of this title, to maximize participation by the pri2 vate sector, including nonprofit organizations and for3 profit entities, in implementing a housing plan that has

4 been approved by the Secretary under section 803.

5 ‘‘SEC. 803. HOUSING PLAN.

6 ‘‘(a) PLAN SUBMISSION.—The Secretary shall—

7 ‘‘(1) require the Director to submit a housing

8 plan under this section for each fiscal year; and

9 ‘‘(2) provide for the review of each plan sub10 mitted under paragraph (1).

11 ‘‘(b) FIVE-YEAR PLAN.—Each housing plan under

12 this section shall—

13 ‘‘(1) be in a form prescribed by the Secretary;

14 and

15 ‘‘(2) contain, with respect to the 5-year period

16 beginning with the fiscal year for which the plan is

17 submitted, the following information:

18 ‘‘(A) MISSION STATEMENT.—A general

19 statement of the mission of the Department of

20 Hawaiian Home Lands to serve the needs of

21 the low-income families to be served by the De22 partment.

23 ‘‘(B) GOAL AND OBJECTIVES.—A state24 ment of the goals and objectives of the Depart25 ment of Hawaiian Home Lands to enable the
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1 Department to serve the needs identified in

2 subparagraph (A) during the period.

3 ‘‘(C) ACTIVITIES PLANS.—An overview of

4 the activities planned during the period includ5 ing an analysis of the manner in which the ac6 tivities will enable the Department to meet its

7 mission, goals, and objectives.

8 ‘‘(c) ONE-YEAR PLAN.—A housing plan under this

9 section shall—

10 ‘‘(1) be in a form prescribed by the Secretary;

11 and

12 ‘‘(2) contain the following information relating

13 to the fiscal year for which the assistance under this

14 title is to be made available:

15 ‘‘(A) GOALS AND OBJECTIVES.—A state16 ment of the goals and objectives to be accom17 plished during the period covered by the plan.

18 ‘‘(B) STATEMENT OF NEEDS.—A state19 ment of the housing needs of the low-income

20 families served by the Department and the

21 means by which those needs will be addressed

22 during the period covered by the plan,

23 including—

24 ‘‘(i) a description of the estimated

25 housing needs and the need for assistance
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1 for the low-income families to be served by

2 the Department, including a description of

3 the manner in which the geographical dis4 tribution of assistance is consistent with—

5 ‘‘(I) the geographical needs of

6 those families; and

7 ‘‘(II) needs for various categories

8 of housing assistance; and

9 ‘‘(ii) a description of the estimated

10 housing needs for all families to be served

11 by the Department.

12 ‘‘(C) FINANCIAL RESOURCES.—An oper13 ating budget for the Department of Hawaiian

14 Home Lands, in a form prescribed by the Sec15 retary, that includes—

16 ‘‘(i) an identification and a descrip17 tion of the financial resources reasonably

18 available to the Department to carry out

19 the purposes of this title, including an ex20 planation of the manner in which amounts

21 made available will be used to leverage ad22 ditional resources; and

23 ‘‘(ii) the uses to which the resources

24 described in clause (i) will be committed,

25 including—
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1 ‘‘(I) eligible and required afford2 able housing activities; and

3 ‘‘(II) administrative expenses.

4 ‘‘(D) AFFORDABLE HOUSING RE5 SOURCES.—A statement of the affordable hous6 ing resources currently available at the time of

7 the submittal of the plan and to be made avail8 able during the period covered by the plan,

9 including—

10 ‘‘(i) a description of the significant

11 characteristics of the housing market in

12 the State of Hawaii, including the avail13 ability of housing from other public

14 sources, private market housing;

15 ‘‘(ii) the manner in which the charac16 teristics referred to in clause (i) influence

17 the decision of the Department of Hawai18 ian Home Lands to use grant amounts to

19 be provided under this title for—

20 ‘‘(I) rental assistance;

21 ‘‘(II) the production of new units;

22 ‘‘(III) the acquisition of existing

23 units; or

24 ‘‘(IV) the rehabilitation of units;
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1 ‘‘(iii) a description of the structure,

2 coordination, and means of cooperation be3 tween the Department of Hawaiian Home

4 Lands and any other governmental entities

5 in the development, submission, or imple6 mentation of housing plans, including a de7 scription of—

8 ‘‘(I) the involvement of private,

9 public, and nonprofit organizations

10 and institutions;

11 ‘‘(II) the use of loan guarantees

12 under section 184A of the Housing

13 and Community Development Act of

14 1992; and

15 ‘‘(III) other housing assistance

16 provided by the United States, includ17 ing loans, grants, and mortgage insur18 ance;

19 ‘‘(iv) a description of the manner in

20 which the plan will address the needs iden21 tified pursuant to subparagraph (C);

22 ‘‘(v) a description of—

23 ‘‘(I) any existing or anticipated

24 homeownership programs and rental
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1 programs to be carried out during the

2 period covered by the plan; and

3 ‘‘(II) the requirements and as4 sistance available under the programs

5 referred to in subclause (I);

6 ‘‘(vi) a description of—

7 ‘‘(I) any existing or anticipated

8 housing rehabilitation programs nec9 essary to ensure the long-term viabil10 ity of the housing to be carried out

11 during the period covered by the plan;

12 and

13 ‘‘(II) the requirements and as14 sistance available under the programs

15 referred to in subclause (I);

16 ‘‘(vii) a description of—

17 ‘‘(I) all other existing or antici18 pated housing assistance provided by

19 the Department of Hawaiian Home

20 Lands during the period covered by

21 the plan, including—

22 ‘‘(aa) transitional housing;

23 ‘‘(bb) homeless housing;

24 ‘‘(cc) college housing; and
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1 ‘‘(dd) supportive services

2 housing; and

3 ‘‘(II) the requirements and as4 sistance available under such pro5 grams;

6 ‘‘(viii)(I) a description of any housing

7 to be demolished or disposed of;

8 ‘‘(II) a timetable for that demolition

9 or disposition; and

10 ‘‘(III) any other information required

11 by the Secretary with respect to that dem12 olition or disposition;

13 ‘‘(ix) a description of the manner in

14 which the Department of Hawaiian Home

15 Lands will coordinate with welfare agencies

16 in the State of Hawaii to ensure that resi17 dents of the affordable housing will be pro18 vided with access to resources to assist in

19 obtaining employment and achieving self20 sufficiency;

21 ‘‘(x) a description of the requirements

22 established by the Department of Hawai23 ian Home Lands to—

24 ‘‘(I) promote the safety of resi25 dents of the affordable housing;
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1 ‘‘(II) facilitate the undertaking of

2 crime prevention measures;

3 ‘‘(III) allow resident input and

4 involvement, including the establish5 ment of resident organizations; and

6 ‘‘(IV) allow for the coordination

7 of crime prevention activities between

8 the Department and local law enforce9 ment officials; and

10 ‘‘(xi) a description of the entities that

11 will carry out the activities under the plan,

12 including the organizational capacity and

13 key personnel of the entities.

14 ‘‘(E) CERTIFICATION OF COMPLIANCE.—

15 Evidence of compliance that shall include, as

16 appropriate—

17 ‘‘(i) a certification that the Depart18 ment of Hawaiian Home Lands will com19 ply with—

20 ‘‘(I) title VI of the Civil Rights

21 Act of 1964 (42 U.S.C. 2000d et seq.)

22 or with the Fair Housing Act (42

23 U.S.C. 3601 et seq.) in carrying out

24 this title, to the extent that such title

25 is applicable; and
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1 ‘‘(II) other applicable Federal

2 statutes;

3 ‘‘(ii) a certification that the Depart4 ment will require adequate insurance cov5 erage for housing units that are owned and

6 operated or assisted with grant amounts

7 provided under this title, in compliance

8 with such requirements as may be estab9 lished by the Secretary;

10 ‘‘(iii) a certification that policies are

11 in effect and are available for review by the

12 Secretary and the public governing the eli13 gibility, admission, and occupancy of fami14 lies for housing assisted with grant

15 amounts provided under this title;

16 ‘‘(iv) a certification that policies are

17 in effect and are available for review by the

18 Secretary and the public governing rents

19 charged, including the methods by which

20 such rents or homebuyer payments are de21 termined, for housing assisted with grant

22 amounts provided under this title; and

23 ‘‘(v) a certification that policies are in

24 effect and are available for review by the

25 Secretary and the public governing the
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1 management and maintenance of housing

2 assisted with grant amounts provided

3 under this title.

4 ‘‘(d) APPLICABILITY OF CIVIL RIGHTS STATUTES.—

5 ‘‘(1) IN GENERAL.—To the extent that the re6 quirements of title VI of the Civil Rights Act of

7 1964 (42 U.S.C. 2000d et seq.) or of the Fair Hous8 ing Act (42 U.S.C. 3601 et seq.) apply to assistance

9 provided under this title, nothing in the require10 ments concerning discrimination on the basis of race

11 shall be construed to prevent the provision of assist12 ance under this title—

13 ‘‘(A) to the Department of Hawaiian

14 Home Lands on the basis that the Department

15 served Native Hawaiians; or

16 ‘‘(B) to an eligible family on the basis that

17 the family is a Native Hawaiian family.

18 ‘‘(2) CIVIL RIGHTS.—Program eligibility under

19 this title may be restricted to Native Hawaiians.

20 Subject to the preceding sentence, no person may be

21 discriminated against on the basis of race, color, na22 tional origin, religion, sex, familial status, or dis23 ability.

24 ‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As a

25 condition of receiving grant amounts under this title, the
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1 Department of Hawaiian Home Lands shall, to the extent

2 practicable, provide for private nonprofit organizations ex3 perienced in the planning and development of affordable

4 housing for Native Hawaiians to carry out affordable

5 housing activities with those grant amounts.

6 ‘‘SEC. 804. REVIEW OF PLANS.

7 ‘‘(a) REVIEW AND NOTICE.—

8 ‘‘(1) REVIEW.—

9 ‘‘(A) IN GENERAL.—The Secretary shall

10 conduct a review of a housing plan submitted to

11 the Secretary under section 803 to ensure that

12 the plan complies with the requirements of that

13 section.

14 ‘‘(B) LIMITATION.—The Secretary shall

15 have the discretion to review a plan referred to

16 in subparagraph (A) only to the extent that the

17 Secretary considers that the review is necessary.

18 ‘‘(2) NOTICE.—

19 ‘‘(A) IN GENERAL.—Not later than 60

20 days after receiving a plan under section 803,

21 the Secretary shall notify the Director of the

22 Department of Hawaiian Home Lands whether

23 the plan complies with the requirements under

24 that section.
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1 ‘‘(B) EFFECT OF FAILURE OF SECRETARY

2 TO TAKE ACTION.—For purposes of this title, if

3 the Secretary does not notify the Director, as

4 required under this subsection and subsection

5 (b), upon the expiration of the 60-day period

6 described in subparagraph (A)—

7 ‘‘(i) the plan shall be considered to

8 have been determined to comply with the

9 requirements under section 803; and

10 ‘‘(ii) the Director shall be considered

11 to have been notified of compliance.

12 ‘‘(b) NOTICE OF REASONS FOR DETERMINATION OF

13 NONCOMPLIANCE.—If the Secretary determines that a

14 plan submitted under section 803 does not comply with

15 the requirements of that section, the Secretary shall speci16 fy in the notice under subsection (a)—

17 ‘‘(1) the reasons for noncompliance; and

18 ‘‘(2) any modifications necessary for the plan to

19 meet the requirements of section 803.

20 ‘‘(c) REVIEW.—

21 ‘‘(1) IN GENERAL.—After the Director of the

22 Department of Hawaiian Home Lands submits a

23 housing plan under section 803, or any amendment

24 or modification to the plan to the Secretary, to the

25 extent that the Secretary considers such action to be
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1 necessary to make a determination under this sub2 section, the Secretary shall review the plan (includ3 ing any amendments or modifications thereto) to de4 termine whether the contents of the plan—

5 ‘‘(A) set forth the information required by

6 section 803 to be contained in the housing plan;

7 ‘‘(B) are consistent with information and

8 data available to the Secretary; and

9 ‘‘(C) are not prohibited by or inconsistent

10 with any provision of this Act or any other ap11 plicable law.

12 ‘‘(2) INCOMPLETE PLANS.—If the Secretary de13 termines under this subsection that any of the ap14 propriate certifications required under section

15 803(c)(2)(E) are not included in a plan, the plan

16 shall be considered to be incomplete.

17 ‘‘(d) UPDATES TO PLAN.—

18 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

19 after a plan under section 803 has been submitted

20 for a fiscal year, the Director of the Department of

21 Hawaiian Home Lands may comply with the provi22 sions of that section for any succeeding fiscal year

23 (with respect to information included for the 5-year

24 period under section 803(b) or for the 1-year period

25 under section 803(c)) by submitting only such infor-
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1 mation regarding such changes as may be necessary

2 to update the plan previously submitted.

3 ‘‘(2) COMPLETE PLANS.—The Director shall

4 submit a complete plan under section 803 not later

5 than 4 years after submitting an initial plan under

6 that section, and not less frequently than every 4

7 years thereafter.

8 ‘‘(e) EFFECTIVE DATE.—This section and section

9 803 shall take effect on the date provided by the Secretary

10 pursuant to section 807(a) to provide for timely submis11 sion and review of the housing plan as necessary for the

12 provision of assistance under this title for fiscal year 2001.

13 ‘‘SEC. 805. TREATMENT OF PROGRAM INCOME AND LABOR

14 STANDARDS.

15 ‘‘(a) PROGRAM INCOME.—

16 ‘‘(1) AUTHORITY TO RETAIN.—The Department

17 of Hawaiian Home Lands may retain any program

18 income that is realized from any grant amounts re19 ceived by the Department under this title if—

20 ‘‘(A) that income was realized after the ini21 tial disbursement of the grant amounts received

22 by the Department; and

23 ‘‘(B) the Director agrees to use the pro24 gram income for affordable housing activities in

25 accordance with the provisions of this title.
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1 ‘‘(2) PROHIBITION OF REDUCTION OF GRANT.—

2 The Secretary may not reduce the grant amount for

3 the Department of Hawaiian Home Lands based

4 solely on—

5 ‘‘(A) whether the Department retains pro6 gram income under paragraph (1); or

7 ‘‘(B) the amount of any such program in8 come retained.

9 ‘‘(3) EXCLUSION OF AMOUNTS.—The Secretary

10 may, by regulation, exclude from consideration as

11 program income any amounts determined to be so

12 small that compliance with the requirements of this

13 subsection would create an unreasonable administra14 tive burden on the Department.

15 ‘‘(b) LABOR STANDARDS.—

16 ‘‘(1) IN GENERAL.—Any contract or agreement

17 for assistance, sale, or lease pursuant to this title

18 shall contain—

19 ‘‘(A) a provision requiring that an amount

20 not less than the wages prevailing in the local21 ity, as determined or adopted (subsequent to a

22 determination under applicable State or local

23 law) by the Secretary, shall be paid to all archi24 tects, technical engineers, draftsmen, techni25 cians employed in the development and all
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1 maintenance, and laborers and mechanics em2 ployed in the operation, of the affordable hous3 ing project involved; and

4 ‘‘(B) a provision that an amount not less

5 than the wages prevailing in the locality, as pre6 determined by the Secretary of Labor pursuant

7 to the Act commonly known as the ‘Davis8 Bacon Act’ (46 Stat. 1494; chapter 411; 40

9 U.S.C. 276a et seq.) shall be paid to all labor10 ers and mechanics employed in the development

11 of the affordable housing involved.

12 ‘‘(2) EXCEPTIONS.—Paragraph (1) and provi13 sions relating to wages required under paragraph (1)

14 in any contract or agreement for assistance, sale, or

15 lease under this title, shall not apply to any indi16 vidual who performs the services for which the indi17 vidual volunteered and who is not otherwise em18 ployed at any time in the construction work and re19 ceived no compensation or is paid expenses, reason20 able benefits, or a nominal fee for those services.

21 ‘‘SEC. 806. ENVIRONMENTAL REVIEW.

22 ‘‘(a) IN GENERAL.—

23 ‘‘(1) RELEASE OF FUNDS.—

24 ‘‘(A) IN GENERAL.—The Secretary may

25 carry out the alternative environmental protec-
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1 tion procedures described in subparagraph (B)

2 in order to ensure—

3 ‘‘(i) that the policies of the National

4 Environmental Policy Act of 1969 (42

5 U.S.C. 4321 et seq.) and other provisions

6 of law that further the purposes of such

7 Act (as specified in regulations issued by

8 the Secretary) are most effectively imple9 mented in connection with the expenditure

10 of grant amounts provided under this title;

11 and

12 ‘‘(ii) to the public undiminished pro13 tection of the environment.

14 ‘‘(B) ALTERNATIVE ENVIRONMENTAL PRO15 TECTION PROCEDURE.—In lieu of applying en16 vironmental protection procedures otherwise ap17 plicable, the Secretary may by regulation pro18 vide for the release of funds for specific projects

19 to the Department of Hawaiian Home Lands if

20 the Director of the Department assumes all of

21 the responsibilities for environmental review,

22 decisionmaking, and action under the National

23 Environmental Policy Act of 1969 (42 U.S.C.

24 4321 et seq.), and such other provisions of law

25 as the regulations of the Secretary specify, that
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1 would apply to the Secretary were the Secretary

2 to undertake those projects as Federal projects.

3 ‘‘(2) REGULATIONS.—

4 ‘‘(A) IN GENERAL.—The Secretary shall

5 issue regulations to carry out this section only

6 after consultation with the Council on Environ7 mental Quality.

8 ‘‘(B) CONTENTS.—The regulations issued

9 under this paragraph shall—

10 ‘‘(i) provide for the monitoring of the

11 environmental reviews performed under

12 this section;

13 ‘‘(ii) in the discretion of the Secretary,

14 facilitate training for the performance of

15 such reviews; and

16 ‘‘(iii) provide for the suspension or

17 termination of the assumption of respon18 sibilities under this section.

19 ‘‘(3) EFFECT ON ASSUMED RESPONSIBILITY.—

20 The duty of the Secretary under paragraph (2)(B)

21 shall not be construed to limit or reduce any respon22 sibility assumed by the Department of Hawaiian

23 Home Lands for grant amounts with respect to any

24 specific release of funds.

25 ‘‘(b) PROCEDURE.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall author2 ize the release of funds subject to the procedures

3 under this section only if, not less than 15 days be4 fore that approval and before any commitment of

5 funds to such projects, the Director of the Depart6 ment of Hawaiian Home Lands submits to the Sec7 retary a request for such release accompanied by a

8 certification that meets the requirements of sub9 section (c).

10 ‘‘(2) EFFECT OF APPROVAL.—The approval of

11 the Secretary of a certification described in para12 graph (1) shall be deemed to satisfy the responsibil13 ities of the Secretary under the National Environ14 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

15 and such other provisions of law as the regulations

16 of the Secretary specify to the extent that those re17 sponsibilities relate to the releases of funds for

18 projects that are covered by that certification.

19 ‘‘(c) CERTIFICATION.—A certification under the pro20 cedures under this section shall—

21 ‘‘(1) be in a form acceptable to the Secretary;

22 ‘‘(2) be executed by the Director of the Depart23 ment of Hawaiian Home Lands;
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1 ‘‘(3) specify that the Department of Hawaiian

2 Home Lands has fully carried out its responsibilities

3 as described under subsection (a); and

4 ‘‘(4) specify that the Director—

5 ‘‘(A) consents to assume the status of a re6 sponsible Federal official under the National

7 Environmental Policy Act of 1969 (42 U.S.C.

8 4321 et seq.) and each provision of law speci9 fied in regulations issued by the Secretary to

10 the extent that those laws apply by reason of

11 subsection (a); and

12 ‘‘(B) is authorized and consents on behalf

13 of the Department of Hawaiian Home Lands

14 and the Director to accept the jurisdiction of

15 the Federal courts for the purpose of enforce16 ment of the responsibilities of the Director of

17 the Department of Hawaiian Home Lands as

18 such an official.

19 ‘‘SEC. 807. REGULATIONS.

20 ‘‘The Secretary shall issue final regulations necessary

21 to carry out this title not later than October 1, 2001.

22 ‘‘SEC. 808. EFFECTIVE DATE.

23 ‘‘Except as otherwise expressly provided in this title,

24 this title shall take effect on the date of the enactment
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1 of the American Homeownership and Economic Oppor2 tunity Act of 2000.

3 ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

4 ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI5 LIES.—

6 ‘‘(1) PRIMARY OBJECTIVE.—The national objec7 tives of this title are—

8 ‘‘(A) to assist and promote affordable

9 housing activities to develop, maintain, and op10 erate affordable housing in safe and healthy en11 vironments for occupancy by low-income Native

12 Hawaiian families;

13 ‘‘(B) to ensure better access to private

14 mortgage markets and to promote self-suffi15 ciency of low-income Native Hawaiian families;

16 ‘‘(C) to coordinate activities to provide

17 housing for low-income Native Hawaiian fami18 lies with Federal, State and local activities to

19 further economic and community development;

20 ‘‘(D) to plan for and integrate infrastruc21 ture resources on the Hawaiian Home Lands

22 with housing development; and

23 ‘‘(E) to—

24 ‘‘(i) promote the development of pri25 vate capital markets; and
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1 ‘‘(ii) allow the markets referred to in

2 clause (i) to operate and grow, thereby

3 benefiting Native Hawaiian communities.

4 ‘‘(2) ELIGIBLE FAMILIES.—

5 ‘‘(A) IN GENERAL.—Except as provided

6 under subparagraph (B), assistance for eligible

7 housing activities under this title shall be lim8 ited to low-income Native Hawaiian families.

9 ‘‘(B) EXCEPTION TO LOW-INCOME RE10 QUIREMENT.—

11 ‘‘(i) IN GENERAL.—The Director may

12 provide assistance for homeownership ac13 tivities under—

14 ‘‘(I) section 810(b);

15 ‘‘(II) model activities under sec16 tion 810(f); or

17 ‘‘(III) loan guarantee activities

18 under section 184A of the Housing

19 and Community Development Act of

20 1992 to Native Hawaiian families who

21 are not low-income families, to the ex22 tent that the Secretary approves the

23 activities under that section to ad24 dress a need for housing for those
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1 families that cannot be reasonably

2 met without that assistance.

3 ‘‘(ii) LIMITATIONS.—The Secretary

4 shall establish limitations on the amount of

5 assistance that may be provided under this

6 title for activities for families that are not

7 low-income families.

8 ‘‘(C) OTHER FAMILIES.—Notwithstanding

9 paragraph (1), the Director may provide hous10 ing or housing assistance provided through af11 fordable housing activities assisted with grant

12 amounts under this title to a family that is not

13 composed of Native Hawaiians if—

14 ‘‘(i) the Department determines that

15 the presence of the family in the housing

16 involved is essential to the well-being of

17 Native Hawaiian families; and

18 ‘‘(ii) the need for housing for the fam19 ily cannot be reasonably met without the

20 assistance.

21 ‘‘(D) PREFERENCE.—

22 ‘‘(i) IN GENERAL.—A housing plan

23 submitted under section 803 may authorize

24 a preference, for housing or housing assist25 ance provided through affordable housing
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1 activities assisted with grant amounts pro2 vided under this title to be provided, to the

3 extent practicable, to families that are eli4 gible to reside on the Hawaiian Home

5 Lands.

6 ‘‘(ii) APPLICATION.—In any case in

7 which a housing plan provides for pref8 erence described in clause (i), the Director

9 shall ensure that housing activities that are

10 assisted with grant amounts under this

11 title are subject to that preference.

12 ‘‘(E) USE OF NONPROFIT ORGANIZA13 TIONS.—As a condition of receiving grant

14 amounts under this title, the Department of

15 Hawaiian Home Lands, shall to the extent

16 practicable, provide for private nonprofit orga17 nizations experienced in the planning and devel18 opment of affordable housing for Native Hawai19 ians to carry out affordable housing activities

20 with those grant amounts.

21 ‘‘SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

22 ‘‘(a) IN GENERAL.—Affordable housing activities

23 under this section are activities conducted in accordance

24 with the requirements of section 811 to—
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1 ‘‘(1) develop or to support affordable housing

2 for rental or homeownership; or

3 ‘‘(2) provide housing services with respect to af4 fordable housing, through the activities described in

5 subsection (b).

6 ‘‘(b) ACTIVITIES.—The activities described in this

7 subsection are the following:

8 ‘‘(1) DEVELOPMENT.—The acquisition, new

9 construction, reconstruction, or moderate or sub10 stantial rehabilitation of affordable housing, which

11 may include—

12 ‘‘(A) real property acquisition;

13 ‘‘(B) site improvement;

14 ‘‘(C) the development of utilities and util15 ity services;

16 ‘‘(D) conversion;

17 ‘‘(E) demolition;

18 ‘‘(F) financing;

19 ‘‘(G) administration and planning; and

20 ‘‘(H) other related activities.

21 ‘‘(2) HOUSING SERVICES.—The provision of

22 housing-related services for affordable housing,

23 including—

24 ‘‘(A) housing counseling in connection with

25 rental or homeownership assistance;
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1 ‘‘(B) the establishment and support of

2 resident organizations and resident manage3 ment corporations;

4 ‘‘(C) energy auditing;

5 ‘‘(D) activities related to the provisions of

6 self-sufficiency and other services; and

7 ‘‘(E) other services related to assisting

8 owners, tenants, contractors, and other entities

9 participating or seeking to participate in other

10 housing activities assisted pursuant to this sec11 tion.

12 ‘‘(3) HOUSING MANAGEMENT SERVICES.—The

13 provision of management services for affordable

14 housing, including—

15 ‘‘(A) the preparation of work specifica16 tions;

17 ‘‘(B) loan processing;

18 ‘‘(C) inspections;

19 ‘‘(D) tenant selection;

20 ‘‘(E) management of tenant-based rental

21 assistance; and

22 ‘‘(F) management of affordable housing

23 projects.

24 ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI25 TIES.—The provision of safety, security, and law en-
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1 forcement measures and activities appropriate to

2 protect residents of affordable housing from crime.

3 ‘‘(5) MODEL ACTIVITIES.—Housing activities

4 under model programs that are—

5 ‘‘(A) designed to carry out the purposes of

6 this title; and

7 ‘‘(B) specifically approved by the Secretary

8 as appropriate for the purpose referred to in

9 subparagraph (A).

10 ‘‘SEC. 811. PROGRAM REQUIREMENTS.

11 ‘‘(a) RENTS.—

12 ‘‘(1) ESTABLISHMENT.—Subject to paragraph

13 (2), as a condition to receiving grant amounts under

14 this title, the Director shall develop written policies

15 governing rents and homebuyer payments charged

16 for dwelling units assisted under this title, including

17 methods by which such rents and homebuyer pay18 ments are determined.

19 ‘‘(2) MAXIMUM RENT.—In the case of any low20 income family residing in a dwelling unit assisted

21 with grant amounts under this title, the monthly

22 rent or homebuyer payment (as applicable) for that

23 dwelling unit may not exceed 30 percent of the

24 monthly adjusted income of that family.

25 ‘‘(b) MAINTENANCE AND EFFICIENT OPERATION.—
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1 ‘‘(1) IN GENERAL.—The Director shall, using

2 amounts of any grants received under this title, re3 serve and use for operating under section 810 such

4 amounts as may be necessary to provide for the con5 tinued maintenance and efficient operation of such

6 housing.

7 ‘‘(2) DISPOSAL OF CERTAIN HOUSING.—This

8 subsection may not be construed to prevent the Di9 rector, or any entity funded by the Department,

10 from demolishing or disposing of housing, pursuant

11 to regulations established by the Secretary.

12 ‘‘(c) INSURANCE COVERAGE.—As a condition to re13 ceiving grant amounts under this title, the Director shall

14 require adequate insurance coverage for housing units that

15 are owned or operated or assisted with grant amounts pro16 vided under this title.

17 ‘‘(d) ELIGIBILITY FOR ADMISSION.—As a condition

18 to receiving grant amounts under this title, the Director

19 shall develop written policies governing the eligibility, ad20 mission, and occupancy of families for housing assisted

21 with grant amounts provided under this title.

22 ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a con23 dition to receiving grant amounts under this title, the Di24 rector shall develop policies governing the management
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1 and maintenance of housing assisted with grant amounts

2 under this title.

3 ‘‘SEC. 812. TYPES OF INVESTMENTS.

4 ‘‘(a) IN GENERAL.—Subject to section 811 and an

5 applicable housing plan approved under section 803, the

6 Director shall have—

7 ‘‘(1) the discretion to use grant amounts for af8 fordable housing activities through the use of—

9 ‘‘(A) equity investments;

10 ‘‘(B) interest-bearing loans or advances;

11 ‘‘(C) noninterest-bearing loans or ad12 vances;

13 ‘‘(D) interest subsidies;

14 ‘‘(E) the leveraging of private investments;

15 or

16 ‘‘(F) any other form of assistance that the

17 Secretary determines to be consistent with the

18 purposes of this title; and

19 ‘‘(2) the right to establish the terms of assist20 ance provided with funds referred to in paragraph

21 (1).

22 ‘‘(b) INVESTMENTS.—The Director may invest grant

23 amounts for the purposes of carrying out affordable hous24 ing activities in investment securities and other obliga25 tions, as approved by the Secretary.
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1 ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TAR2 GETING.

3 ‘‘(a) IN GENERAL.—Housing shall qualify for afford4 able housing for purposes of this title only if—

5 ‘‘(1) each dwelling unit in the housing—

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

7 available for occupancy only by a family that is

8 a low-income family at the time of the initial

9 occupancy of that family of that unit; and

10 ‘‘(B) in the case of housing for home11 ownership, is made available for purchase only

12 by a family that is a low-income family at the

13 time of purchase; and

14 ‘‘(2) each dwelling unit in the housing will re15 main affordable, according to binding commitments

16 satisfactory to the Secretary, for—

17 ‘‘(A) the remaining useful life of the prop18 erty (as determined by the Secretary) without

19 regard to the term of the mortgage or to trans20 fer of ownership; or

21 ‘‘(B) such other period as the Secretary

22 determines is the longest feasible period of time

23 consistent with sound economics and the pur24 poses of this title, except upon a foreclosure by

25 a lender (or upon other transfer in lieu of fore26 closure) if that action—
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1 ‘‘(i) recognizes any contractual or

2 legal rights of any public agency, nonprofit

3 sponsor, or other person or entity to take

4 an action that would—

5 ‘‘(I) avoid termination of low-in6 come affordability, in the case of fore7 closure; or

8 ‘‘(II) transfer ownership in lieu

9 of foreclosure; and

10 ‘‘(ii) is not for the purpose of avoiding

11 low-income affordability restrictions, as de12 termined by the Secretary.

13 ‘‘(b) EXCEPTION.—Notwithstanding subsection (a),

14 housing assisted pursuant to section 809(a)(2)(B) shall be

15 considered affordable housing for purposes of this title.

16 ‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT SELEC17 TION.

18 ‘‘(a) LEASES.—Except to the extent otherwise pro19 vided by or inconsistent with the laws of the State of Ha20 waii, in renting dwelling units in affordable housing as21 sisted with grant amounts provided under this title, the

22 Director, owner, or manager shall use leases that—

23 ‘‘(1) do not contain unreasonable terms and

24 conditions;
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1 ‘‘(2) require the Director, owner, or manager to

2 maintain the housing in compliance with applicable

3 housing codes and quality standards;

4 ‘‘(3) require the Director, owner, or manager to

5 give adequate written notice of termination of the

6 lease, which shall be the period of time required

7 under applicable State or local law;

8 ‘‘(4) specify that, with respect to any notice of

9 eviction or termination, notwithstanding any State

10 or local law, a resident shall be informed of the op11 portunity, before any hearing or trial, to examine

12 any relevant documents, record, or regulations di13 rectly related to the eviction or termination;

14 ‘‘(5) require that the Director, owner, or man15 ager may not terminate the tenancy, during the

16 term of the lease, except for serious or repeated vio17 lation of the terms and conditions of the lease, viola18 tion of applicable Federal, State, or local law, or for

19 other good cause; and

20 ‘‘(6) provide that the Director, owner, or man21 ager may terminate the tenancy of a resident for

22 any activity, engaged in by the resident, any member

23 of the household of the resident, or any guest or

24 other person under the control of the resident,

25 that—
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1 ‘‘(A) threatens the health or safety of, or

2 right to peaceful enjoyment of the premises by,

3 other residents or employees of the Department,

4 owner, or manager;

5 ‘‘(B) threatens the health or safety of, or

6 right to peaceful enjoyment of their premises

7 by, persons residing in the immediate vicinity of

8 the premises; or

9 ‘‘(C) is criminal activity (including drug-re10 lated criminal activity) on or off the premises.

11 ‘‘(b) TENANT OR HOMEBUYER SELECTION.—As a

12 condition to receiving grant amounts under this title, the

13 Director shall adopt and use written tenant and home14 buyer selection policies and criteria that—

15 ‘‘(1) are consistent with the purpose of pro16 viding housing for low-income families;

17 ‘‘(2) are reasonably related to program eligi18 bility and the ability of the applicant to perform the

19 obligations of the lease; and

20 ‘‘(3) provide for—

21 ‘‘(A) the selection of tenants and home22 buyers from a written waiting list in accordance

23 with the policies and goals set forth in an appli24 cable housing plan approved under section 803;

25 and
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1 ‘‘(B) the prompt notification in writing of

2 any rejected applicant of the grounds for that

3 rejection.

4 ‘‘SEC. 815. REPAYMENT.

5 ‘‘If the Department of Hawaiian Home Lands uses

6 grant amounts to provide affordable housing under activi7 ties under this title and, at any time during the useful

8 life of the housing, the housing does not comply with the

9 requirement under section 813(a)(2), the Secretary

10 shall—

11 ‘‘(1) reduce future grant payments on behalf of

12 the Department by an amount equal to the grant

13 amounts used for that housing (under the authority

14 of section 819(a)(2)); or

15 ‘‘(2) require repayment to the Secretary of any

16 amount equal to those grant amounts.

17 ‘‘SEC. 816. ANNUAL ALLOCATION.

18 ‘‘For each fiscal year, the Secretary shall allocate any

19 amounts made available for assistance under this title for

20 the fiscal year, in accordance with the formula established

21 pursuant to section 817 to the Department of Hawaiian

22 Home Lands if the Department complies with the require23 ments under this title for a grant under this title.
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1 ‘‘SEC. 817. ALLOCATION FORMULA.

2 ‘‘(a) ESTABLISHMENT.—The Secretary shall, by reg3 ulation issued not later than the expiration of the 6-month

4 period beginning on the date of the enactment of the

5 American Homeownership and Economic Opportunity Act

6 of 2000, in the manner provided under section 807, estab7 lish a formula to provide for the allocation of amounts

8 available for a fiscal year for block grants under this title

9 in accordance with the requirements of this section.

10 ‘‘(b) FACTORS FOR DETERMINATION OF NEED.—

11 The formula under subsection (a) shall be based on factors

12 that reflect the needs for assistance for affordable housing

13 activities, including—

14 ‘‘(1) the number of low-income dwelling units

15 owned or operated at the time pursuant to a con16 tract between the Director and the Secretary;

17 ‘‘(2) the extent of poverty and economic distress

18 and the number of Native Hawaiian families eligible

19 to reside on the Hawaiian Home Lands; and

20 ‘‘(3) any other objectively measurable condi21 tions that the Secretary and the Director may speci22 fy.

23 ‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In es24 tablishing the formula under subsection (a), the Secretary

25 shall consider the relative administrative capacities of the
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1 Department of Hawaiian Home Lands and other chal2 lenges faced by the Department, including—

3 ‘‘(1) geographic distribution within Hawaiian

4 Home Lands; and

5 ‘‘(2) technical capacity.

6 ‘‘(d) EFFECTIVE DATE.—This section shall take ef7 fect on the date of the enactment of the American Home8 ownership and Economic Opportunity Act of 2000.

9 ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE.

10 ‘‘(a) ACTIONS BY SECRETARY AFFECTING GRANT

11 AMOUNTS.—

12 ‘‘(1) IN GENERAL.—Except as provided in sub13 section (b), if the Secretary finds after reasonable

14 notice and opportunity for a hearing that the De15 partment of Hawaiian Home Lands has failed to

16 comply substantially with any provision of this title,

17 the Secretary shall—

18 ‘‘(A) terminate payments under this title

19 to the Department;

20 ‘‘(B) reduce payments under this title to

21 the Department by an amount equal to the

22 amount of such payments that were not ex23 pended in accordance with this title; or
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1 ‘‘(C) limit the availability of payments

2 under this title to programs, projects, or activi3 ties not affected by such failure to comply.

4 ‘‘(2) ACTIONS.—If the Secretary takes an ac5 tion under subparagraph (A), (B), or (C) of para6 graph (1), the Secretary shall continue that action

7 until the Secretary determines that the failure by

8 the Department to comply with the provision has

9 been remedied by the Department and the Depart10 ment is in compliance with that provision.

11 ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL

12 INCAPACITY.—The Secretary may provide technical assist13 ance for the Department, either directly or indirectly, that

14 is designed to increase the capability and capacity of the

15 Director of the Department to administer assistance pro16 vided under this title in compliance with the requirements

17 under this title if the Secretary makes a finding under

18 subsection (a), but determines that the failure of the De19 partment to comply substantially with the provisions of

20 this title—

21 ‘‘(1) is not a pattern or practice of activities

22 constituting willful noncompliance; and

23 ‘‘(2) is a result of the limited capability or ca24 pacity of the Department of Hawaiian Home Lands.

25 ‘‘(c) REFERRAL FOR CIVIL ACTION.—
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1 ‘‘(1) AUTHORITY.—In lieu of, or in addition to,

2 any action that the Secretary may take under sub3 section (a), if the Secretary has reason to believe

4 that the Department of Hawaiian Home Lands has

5 failed to comply substantially with any provision of

6 this title, the Secretary may refer the matter to the

7 Attorney General of the United States with a rec8 ommendation that an appropriate civil action be in9 stituted.

10 ‘‘(2) CIVIL ACTION.—Upon receiving a referral

11 under paragraph (1), the Attorney General may

12 bring a civil action in any United States district

13 court of appropriate jurisdiction for such relief as

14 may be appropriate, including an action—

15 ‘‘(A) to recover the amount of the assist16 ance furnished under this title that was not ex17 pended in accordance with this title; or

18 ‘‘(B) for mandatory or injunctive relief.

19 ‘‘(d) REVIEW.—

20 ‘‘(1) IN GENERAL.—If the Director receives no21 tice under subsection (a) of the termination, reduc22 tion, or limitation of payments under this Act, the

23 Director—

24 ‘‘(A) may, not later than 60 days after re25 ceiving such notice, file with the United States
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1 Court of Appeals for the Ninth Circuit, or in

2 the United States Court of Appeals for the Dis3 trict of Columbia, a petition for review of the

4 action of the Secretary; and

5 ‘‘(B) upon the filing of any petition under

6 subparagraph (A), shall forthwith transmit cop7 ies of the petition to the Secretary and the At8 torney General of the United States, who shall

9 represent the Secretary in the litigation.

10 ‘‘(2) PROCEDURE.—

11 ‘‘(A) IN GENERAL.—The Secretary shall

12 file in the court a record of the proceeding on

13 which the Secretary based the action, as pro14 vided in section 2112 of title 28, United States

15 Code.

16 ‘‘(B) OBJECTIONS.—No objection to the

17 action of the Secretary shall be considered by

18 the court unless the Department has registered

19 the objection before the Secretary.

20 ‘‘(3) DISPOSITION.—

21 ‘‘(A) COURT PROCEEDINGS.—

22 ‘‘(i) JURISDICTION OF COURT.—The

23 court shall have jurisdiction to affirm or

24 modify the action of the Secretary or to set

25 the action aside in whole or in part.
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1 ‘‘(ii) FINDINGS OF FACT.—If sup2 ported by substantial evidence on the

3 record considered as a whole, the findings

4 of fact by the Secretary shall be conclusive.

5 ‘‘(iii) ADDITION.—The court may

6 order evidence, in addition to the evidence

7 submitted for review under this subsection,

8 to be taken by the Secretary, and to be

9 made part of the record.

10 ‘‘(B) SECRETARY.—

11 ‘‘(i) IN GENERAL.—The Secretary, by

12 reason of the additional evidence referred

13 to in subparagraph (A) and filed with the

14 court—

15 ‘‘(I) may—

16 ‘‘(aa) modify the findings of

17 fact of the Secretary; or

18 ‘‘(bb) make new findings;

19 and

20 ‘‘(II) shall file—

21 ‘‘(aa) such modified or new

22 findings; and

23 ‘‘(bb) the recommendation

24 of the Secretary, if any, for the

25 modification or setting aside of
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1 the original action of the Sec2 retary.

3 ‘‘(ii) FINDINGS.—The findings re4 ferred to in clause (i)(II)(bb) shall, with

5 respect to a question of fact, be considered

6 to be conclusive if those findings are—

7 ‘‘(I) supported by substantial evi8 dence on the record; and

9 ‘‘(II) considered as a whole.

10 ‘‘(4) FINALITY.—

11 ‘‘(A) IN GENERAL.—Except as provided in

12 subparagraph (B), upon the filing of the record

13 under this subsection with the court—

14 ‘‘(i) the jurisdiction of the court shall

15 be exclusive; and

16 ‘‘(ii) the judgment of the court shall

17 be final.

18 ‘‘(B) REVIEW BY SUPREME COURT.—A

19 judgment under subparagraph (A) shall be sub20 ject to review by the Supreme Court of the

21 United States upon writ of certiorari or certifi22 cation, as provided in section 1254 of title 28,

23 United States Code.

24 ‘‘SEC. 819. MONITORING OF COMPLIANCE.

25 ‘‘(a) ENFORCEABLE AGREEMENTS.—
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1 ‘‘(1) IN GENERAL.—The Director, through

2 binding contractual agreements with owners or other

3 authorized entities, shall ensure long-term compli4 ance with the provisions of this title.

5 ‘‘(2) MEASURES.—The measures referred to in

6 paragraph (1) shall provide for—

7 ‘‘(A) to the extent allowable by Federal

8 and State law, the enforcement of the provi9 sions of this title by the Department and the

10 Secretary; and

11 ‘‘(B) remedies for breach of the provisions

12 referred to in paragraph (1).

13 ‘‘(b) PERIODIC MONITORING.—

14 ‘‘(1) IN GENERAL.—Not less frequently than

15 annually, the Director shall review the activities con16 ducted and housing assisted under this title to as17 sess compliance with the requirements of this title.

18 ‘‘(2) REVIEW.—Each review under paragraph

19 (1) shall include onsite inspection of housing to de20 termine compliance with applicable requirements.

21 ‘‘(3) RESULTS.—The results of each review

22 under paragraph (1) shall be—

23 ‘‘(A) included in a performance report of

24 the Director submitted to the Secretary under

25 section 820; and
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1 ‘‘(B) made available to the public.

2 ‘‘(c) PERFORMANCE MEASURES.—The Secretary

3 shall establish such performance measures as may be nec4 essary to assess compliance with the requirements of this

5 title.

6 ‘‘SEC. 820. PERFORMANCE REPORTS.

7 ‘‘(a) REQUIREMENT.—For each fiscal year, the Di8 rector shall—

9 ‘‘(1) review the progress the Department has

10 made during that fiscal year in carrying out the

11 housing plan submitted by the Department under

12 section 803; and

13 ‘‘(2) submit a report to the Secretary (in a

14 form acceptable to the Secretary) describing the con15 clusions of the review.

16 ‘‘(b) CONTENT.—Each report submitted under this

17 section for a fiscal year shall—

18 ‘‘(1) describe the use of grant amounts provided

19 to the Department of Hawaiian Home Lands for

20 that fiscal year;

21 ‘‘(2) assess the relationship of the use referred

22 to in paragraph (1) to the goals identified in the

23 housing plan;

24 ‘‘(3) indicate the programmatic accomplish25 ments of the Department; and
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1 ‘‘(4) describe the manner in which the Depart2 ment would change its housing plan submitted under

3 section 803 as a result of its experiences.

4 ‘‘(c) SUBMISSIONS.—The Secretary shall—

5 ‘‘(1) establish a date for submission of each re6 port under this section;

7 ‘‘(2) review each such report; and

8 ‘‘(3) with respect to each such report, make rec9 ommendations as the Secretary considers appro10 priate to carry out the purposes of this title.

11 ‘‘(d) PUBLIC AVAILABILITY.—

12 ‘‘(1) COMMENTS BY BENEFICIARIES.—In pre13 paring a report under this section, the Director shall

14 make the report publicly available to the bene15 ficiaries of the Hawaiian Homes Commission Act,

16 1920 (42 Stat. 108 et seq.) and give a sufficient

17 amount of time to permit those beneficiaries to com18 ment on that report before it is submitted to the

19 Secretary (in such manner and at such time as the

20 Director may determine).

21 ‘‘(2) SUMMARY OF COMMENTS.—The report

22 shall include a summary of any comments received

23 by the Director from beneficiaries under paragraph

24 (1) regarding the program to carry out the housing

25 plan.
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1 ‘‘SEC. 821. REVIEW AND AUDIT BY SECRETARY.

2 ‘‘(a) ANNUAL REVIEW.—

3 ‘‘(1) IN GENERAL.—The Secretary shall, not

4 less frequently than on an annual basis, make such

5 reviews and audits as may be necessary or appro6 priate to determine whether—

7 ‘‘(A) the Director has—

8 ‘‘(i) carried out eligible activities

9 under this title in a timely manner;

10 ‘‘(ii) carried out and made certifi11 cations in accordance with the require12 ments and the primary objectives of this

13 title and with other applicable laws; and

14 ‘‘(iii) a continuing capacity to carry

15 out the eligible activities in a timely man16 ner;

17 ‘‘(B) the Director has complied with the

18 housing plan submitted by the Director under

19 section 803; and

20 ‘‘(C) the performance reports of the De21 partment under section 821 are accurate.

22 ‘‘(2) ONSITE VISITS.—Each review conducted

23 under this section shall, to the extent practicable, in24 clude onsite visits by employees of the Department

25 of Housing and Urban Development.
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1 ‘‘(b) REPORT BY SECRETARY.—The Secretary shall

2 give the Department of Hawaiian Home Lands not less

3 than 30 days to review and comment on a report under

4 this subsection. After taking into consideration the com5 ments of the Department, the Secretary may revise the

6 report and shall make the comments of the Department

7 and the report with any revisions, readily available to the

8 public not later than 30 days after receipt of the com9 ments of the Department.

10 ‘‘(c) EFFECT OF REVIEWS.—The Secretary may

11 make appropriate adjustments in the amount of annual

12 grants under this title in accordance with the findings of

13 the Secretary pursuant to reviews and audits under this

14 section. The Secretary may adjust, reduce, or withdraw

15 grant amounts, or take other action as appropriate in ac16 cordance with the reviews and audits of the Secretary

17 under this section, except that grant amounts already ex18 pended on affordable housing activities may not be recap19 tured or deducted from future assistance provided to the

20 Department of Hawaiian Home Lands.

21 ‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

22 ‘‘To the extent that the financial transactions of the

23 Department of Hawaiian Home Lands involving grant

24 amounts under this title relate to amounts provided under

25 this title, those transactions may be audited by the Comp-
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1 troller General of the United States under such regula2 tions as may be prescribed by the Comptroller General.

3 The Comptroller General of the United States shall have

4 access to all books, accounts, records, reports, files, and

5 other papers, things, or property belonging to or in use

6 by the Department of Hawaiian Home Lands pertaining

7 to such financial transactions and necessary to facilitate

8 the audit.

9 ‘‘SEC. 823. REPORTS TO CONGRESS.

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

11 conclusion of each fiscal year in which assistance under

12 this title is made available, the Secretary shall submit to

13 Congress a report that contains—

14 ‘‘(1) a description of the progress made in ac15 complishing the objectives of this title;

16 ‘‘(2) a summary of the use of funds available

17 under this title during the preceding fiscal year; and

18 ‘‘(3) a description of the aggregate outstanding

19 loan guarantees under section 184A of the Housing

20 and Community Development Act of 1992.

21 ‘‘(b) RELATED REPORTS.—The Secretary may re22 quire the Director to submit to the Secretary such reports

23 and other information as may be necessary in order for

24 the Secretary to prepare the report required under sub25 section (a).
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1 ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated to the De3 partment of Housing and Urban Development for grants

4 under this title such sums as may be necessary for each

5 of fiscal years 2001, 2002, 2003, 2004, and 2005.’’.

6 SEC. 514. LOAN GUARANTEES.

7 Subtitle E of title I of the Housing and Community

8 Development Act of 1992 is amended by inserting after

9 section 184 (12 U.S.C. 1715z–13a) the following:

10 ‘‘SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN

11 HOUSING.

12 ‘‘(a) DEFINITIONS.—In this section:

13 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME

14 LANDS.—The term ‘Department of Hawaiian Home

15 Lands’ means the agency or department of the gov16 ernment of the State of Hawaii that is responsible

17 for the administration of the Hawaiian Homes Com18 mission Act, 1920 (42 Stat. 108 et seq.).

19 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en20 tity’ means a Native Hawaiian family, the Depart21 ment of Hawaiian Home Lands, the Office of Ha22 waiian Affairs, and private nonprofit or private for23 profit organizations experienced in the planning and

24 development of affordable housing for Native Hawai25 ians.
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1 ‘‘(3) FAMILY.—The term ‘family’ means one or

2 more persons maintaining a household, as the Sec3 retary shall by regulation provide.

4 ‘‘(4) GUARANTEE FUND.—The term ‘Guarantee

5 Fund’ means the Native Hawaiian Housing Loan

6 Guarantee Fund established under subsection (i).

7 ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha8 waiian Home Lands’ means lands that—

9 ‘‘(A) have the status of Hawaiian Home

10 Lands under section 204 of the Hawaiian

11 Homes Commission Act (42 Stat. 110); or

12 ‘‘(B) are acquired pursuant to that Act.

13 ‘‘(6) NATIVE HAWAIIAN.—The term ‘Native

14 Hawaiian’ means any individual who is—

15 ‘‘(A) a citizen of the United States; and

16 ‘‘(B) a descendant of the aboriginal people,

17 who, prior to 1778, occupied and exercised sov18 ereignty in the area that currently constitutes

19 the State of Hawaii, as evidenced by—

20 ‘‘(i) genealogical records;

21 ‘‘(ii) verification by kupuna (elders) or

22 kama’aina (long-term community resi23 dents); or

24 ‘‘(iii) birth records of the State of Ha25 waii.
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1 ‘‘(7) OFFICE OF HAWAIIAN AFFAIRS.—The

2 term ‘Office of Hawaiian Affairs’ means the entity

3 of that name established under the constitution of

4 the State of Hawaii.

5 ‘‘(b) AUTHORITY.—To provide access to sources of

6 private financing to Native Hawaiian families who other7 wise could not acquire housing financing because of the

8 unique legal status of the Hawaiian Home Lands or as

9 a result of a lack of access to private financial markets,

10 the Secretary may guarantee an amount not to exceed 100

11 percent of the unpaid principal and interest that is due

12 on an eligible loan under subsection (b).

13 ‘‘(c) ELIGIBLE LOANS.—Under this section, a loan

14 is an eligible loan if that loan meets the following require15 ments:

16 ‘‘(1) ELIGIBLE BORROWERS.—The loan is made

17 only to a borrower who is—

18 ‘‘(A) a Native Hawaiian family;

19 ‘‘(B) the Department of Hawaiian Home

20 Lands;

21 ‘‘(C) the Office of Hawaiian Affairs; or

22 ‘‘(D) a private nonprofit organization expe23 rienced in the planning and development of af24 fordable housing for Native Hawaiians.

25 ‘‘(2) ELIGIBLE HOUSING.—
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1 ‘‘(A) IN GENERAL.—The loan will be used

2 to construct, acquire, or rehabilitate not more

3 than 4-family dwellings that are standard hous4 ing and are located on Hawaiian Home Lands

5 for which a housing plan described in subpara6 graph (B) applies.

7 ‘‘(B) HOUSING PLAN.—A housing plan de8 scribed in this subparagraph is a housing plan

9 that—

10 ‘‘(i) has been submitted and approved

11 by the Secretary under section 803 of the

12 Native American Housing Assistance and

13 Self-Determination Act of 1996; and

14 ‘‘(ii) provides for the use of loan guar15 antees under this section to provide afford16 able homeownership housing on Hawaiian

17 Home Lands.

18 ‘‘(3) SECURITY.—The loan may be secured by

19 any collateral authorized under applicable Federal or

20 State law.

21 ‘‘(4) LENDERS.—

22 ‘‘(A) IN GENERAL.—The loan shall be

23 made only by a lender approved by, and meet24 ing qualifications established by, the Secretary,

25 including any lender described in subparagraph
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•HR 5640 EH

1 (B), except that a loan otherwise insured or

2 guaranteed by an agency of the Federal Gov3 ernment or made by the Department of Hawai4 ian Home Lands from amounts borrowed from

5 the United States shall not be eligible for a

6 guarantee under this section.

7 ‘‘(B) APPROVAL.—The following lenders

8 shall be considered to be lenders that have been

9 approved by the Secretary:

10 ‘‘(i) Any mortgagee approved by the

11 Secretary for participation in the single

12 family mortgage insurance program under

13 title II of the National Housing Act (12

14 U.S.C.A. 1707 et seq.).

15 ‘‘(ii) Any lender that makes housing

16 loans under chapter 37 of title 38, United

17 States Code, that are automatically guar18 anteed under section 3702(d) of title 38,

19 United States Code.

20 ‘‘(iii) Any lender approved by the Sec21 retary of Agriculture to make guaranteed

22 loans for single family housing under the

23 Housing Act of 1949 (42 U.S.C.A. 1441 et

24 seq.).
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1 ‘‘(iv) Any other lender that is super2 vised, approved, regulated, or insured by

3 any agency of the Federal Government.

4 ‘‘(5) TERMS.—The loan shall—

5 ‘‘(A) be made for a term not exceeding 30

6 years;

7 ‘‘(B) bear interest (exclusive of the guar8 antee fee under subsection (d) and service

9 charges, if any) at a rate agreed upon by the

10 borrower and the lender and determined by the

11 Secretary to be reasonable, but not to exceed

12 the rate generally charged in the area (as deter13 mined by the Secretary) for home mortgage

14 loans not guaranteed or insured by any agency

15 or instrumentality of the Federal Government;

16 ‘‘(C) involve a principal obligation not

17 exceeding—

18 ‘‘(i) 97.75 percent of the appraised

19 value of the property as of the date the

20 loan is accepted for guarantee (or 98.75

21 percent if the value of the property is

22 $50,000 or less); or

23 ‘‘(ii) the amount approved by the Sec24 retary under this section; and
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1 ‘‘(D) involve a payment on account of the

2 property—

3 ‘‘(i) in cash or its equivalent; or

4 ‘‘(ii) through the value of any im5 provements to the property made through

6 the skilled or unskilled labor of the bor7 rower, as the Secretary shall provide.

8 ‘‘(d) CERTIFICATE OF GUARANTEE.—

9 ‘‘(1) APPROVAL PROCESS.—

10 ‘‘(A) IN GENERAL.—Before the Secretary

11 approves any loan for guarantee under this sec12 tion, the lender shall submit the application for

13 the loan to the Secretary for examination.

14 ‘‘(B) APPROVAL.—If the Secretary ap15 proves the application submitted under sub16 paragraph (A), the Secretary shall issue a cer17 tificate under this subsection as evidence of the

18 loan guarantee approved.

19 ‘‘(2) STANDARD FOR APPROVAL.—The Sec20 retary may approve a loan for guarantee under this

21 section and issue a certificate under this subsection

22 only if the Secretary determines that there is a rea23 sonable prospect of repayment of the loan.

24 ‘‘(3) EFFECT.—
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1 ‘‘(A) IN GENERAL.—A certificate of guar2 antee issued under this subsection by the Sec3 retary shall be conclusive evidence of the eligi4 bility of the loan for guarantee under this sec5 tion and the amount of that guarantee.

6 ‘‘(B) EVIDENCE.—The evidence referred to

7 in subparagraph (A) shall be incontestable in

8 the hands of the bearer.

9 ‘‘(C) FULL FAITH AND CREDIT.—The full

10 faith and credit of the United States is pledged

11 to the payment of all amounts agreed to be paid

12 by the Secretary as security for the obligations

13 made by the Secretary under this section.

14 ‘‘(4) FRAUD AND MISREPRESENTATION.—This

15 subsection may not be construed—

16 ‘‘(A) to preclude the Secretary from estab17 lishing defenses against the original lender

18 based on fraud or material misrepresentation;

19 or

20 ‘‘(B) to bar the Secretary from estab21 lishing by regulations that are on the date of

22 issuance or disbursement, whichever is earlier,

23 partial defenses to the amount payable on the

24 guarantee.

25 ‘‘(e) GUARANTEE FEE.—
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•HR 5640 EH

1 ‘‘(1) IN GENERAL.—The Secretary shall fix and

2 collect a guarantee fee for the guarantee of a loan

3 under this section, which may not exceed the amount

4 equal to 1 percent of the principal obligation of the

5 loan.

6 ‘‘(2) PAYMENT.—The fee under this subsection

7 shall—

8 ‘‘(A) be paid by the lender at time of

9 issuance of the guarantee; and

10 ‘‘(B) be adequate, in the determination of

11 the Secretary, to cover expenses and probable

12 losses.

13 ‘‘(3) DEPOSIT.—The Secretary shall deposit

14 any fees collected under this subsection in the Na15 tive Hawaiian Housing Loan Guarantee Fund estab16 lished under subsection (j).

17 ‘‘(f) LIABILITY UNDER GUARANTEE.—The liability

18 under a guarantee provided under this section shall de19 crease or increase on a pro rata basis according to any

20 decrease or increase in the amount of the unpaid obliga21 tion under the provisions of the loan agreement involved.

22 ‘‘(g) TRANSFER AND ASSUMPTION.—Notwith23 standing any other provision of law, any loan guaranteed

24 under this section, including the security given for the

25 loan, may be sold or assigned by the lender to any finan-
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1 cial institution subject to examination and supervision by

2 an agency of the Federal Government or of any State or

3 the District of Columbia.

4 ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL

5 MONEY PENALTIES.—

6 ‘‘(1) IN GENERAL.—

7 ‘‘(A) GROUNDS FOR ACTION.—The Sec8 retary may take action under subparagraph (B)

9 if the Secretary determines that any lender or

10 holder of a guarantee certificate under sub11 section (c)—

12 ‘‘(i) has failed—

13 ‘‘(I) to maintain adequate ac14 counting records;

15 ‘‘(II) to service adequately loans

16 guaranteed under this section; or

17 ‘‘(III) to exercise proper credit or

18 underwriting judgment; or

19 ‘‘(ii) has engaged in practices other20 wise detrimental to the interest of a bor21 rower or the United States.

22 ‘‘(B) ACTIONS.—Upon a determination by

23 the Secretary that a holder of a guarantee cer24 tificate under subsection (c) has failed to carry

25 out an activity described in subparagraph (A)(i)
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1 or has engaged in practices described in sub2 paragraph (A)(ii), the Secretary may—

3 ‘‘(i) refuse, either temporarily or per4 manently, to guarantee any further loans

5 made by such lender or holder;

6 ‘‘(ii) bar such lender or holder from

7 acquiring additional loans guaranteed

8 under this section; and

9 ‘‘(iii) require that such lender or hold10 er assume not less than 10 percent of any

11 loss on further loans made or held by the

12 lender or holder that are guaranteed under

13 this section.

14 ‘‘(2) CIVIL MONEY PENALTIES FOR INTEN15 TIONAL VIOLATIONS.—

16 ‘‘(A) IN GENERAL.—The Secretary may

17 impose a civil monetary penalty on a lender or

18 holder of a guarantee certificate under sub19 section (d) if the Secretary determines that the

20 holder or lender has intentionally failed—

21 ‘‘(i) to maintain adequate accounting

22 records;

23 ‘‘(ii) to adequately service loans guar24 anteed under this section; or
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1 ‘‘(iii) to exercise proper credit or un2 derwriting judgment.

3 ‘‘(B) PENALTIES.—A civil monetary pen4 alty imposed under this paragraph shall be im5 posed in the manner and be in an amount pro6 vided under section 536 of the National Hous7 ing Act (12 U.S.C.A. 1735f–1) with respect to

8 mortgagees and lenders under that Act.

9 ‘‘(3) PAYMENT ON LOANS MADE IN GOOD

10 FAITH.—Notwithstanding paragraphs (1) and (2), if

11 a loan was made in good faith, the Secretary may

12 not refuse to pay a lender or holder of a valid guar13 antee on that loan, without regard to whether the

14 lender or holder is barred under this subsection.

15 ‘‘(i) PAYMENT UNDER GUARANTEE.—

16 ‘‘(1) LENDER OPTIONS.—

17 ‘‘(A) IN GENERAL.—

18 ‘‘(i) NOTIFICATION.—If a borrower on

19 a loan guaranteed under this section de20 faults on the loan, the holder of the guar21 antee certificate shall provide written no22 tice of the default to the Secretary.

23 ‘‘(ii) PAYMENT.—Upon providing the

24 notice required under clause (i), the holder

25 of the guarantee certificate shall be enti-
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1 tled to payment under the guarantee (sub2 ject to the provisions of this section) and

3 may proceed to obtain payment in one of

4 the following manners:

5 ‘‘(I) FORECLOSURE.—

6 ‘‘(aa) IN GENERAL.—The

7 holder of the certificate may ini8 tiate foreclosure proceedings

9 (after providing written notice of

10 that action to the Secretary).

11 ‘‘(bb) PAYMENT.—Upon a

12 final order by the court author13 izing foreclosure and submission

14 to the Secretary of a claim for

15 payment under the guarantee,

16 the Secretary shall pay to the

17 holder of the certificate the pro

18 rata portion of the amount guar19 anteed (as determined pursuant

20 to subsection (f)) plus reasonable

21 fees and expenses as approved by

22 the Secretary.

23 ‘‘(cc) SUBROGATION.—The

24 rights of the Secretary shall be

25 subrogated to the rights of the
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1 holder of the guarantee. The

2 holder shall assign the obligation

3 and security to the Secretary.

4 ‘‘(II) NO FORECLOSURE.—

5 ‘‘(aa) IN GENERAL.—With6 out seeking foreclosure (or in any

7 case in which a foreclosure pro8 ceeding initiated under clause (i)

9 continues for a period in excess

10 of 1 year), the holder of the

11 guarantee may submit to the

12 Secretary a request to assign the

13 obligation and security interest to

14 the Secretary in return for pay15 ment of the claim under the

16 guarantee. The Secretary may

17 accept assignment of the loan if

18 the Secretary determines that the

19 assignment is in the best interest

20 of the United States.

21 ‘‘(bb) PAYMENT.—Upon as22 signment, the Secretary shall pay

23 to the holder of the guarantee

24 the pro rata portion of the
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1 amount guaranteed (as deter2 mined under subsection (f)).

3 ‘‘(cc) SUBROGATION.—The

4 rights of the Secretary shall be

5 subrogated to the rights of the

6 holder of the guarantee. The

7 holder shall assign the obligation

8 and security to the Secretary.

9 ‘‘(B) REQUIREMENTS.—Before any pay10 ment under a guarantee is made under sub11 paragraph (A), the holder of the guarantee

12 shall exhaust all reasonable possibilities of col13 lection. Upon payment, in whole or in part, to

14 the holder, the note or judgment evidencing the

15 debt shall be assigned to the United States and

16 the holder shall have no further claim against

17 the borrower or the United States. The Sec18 retary shall then take such action to collect as

19 the Secretary determines to be appropriate.

20 ‘‘(2) LIMITATIONS ON LIQUIDATION.—

21 ‘‘(A) IN GENERAL.—If a borrower defaults

22 on a loan guaranteed under this section that in23 volves a security interest in restricted Hawaiian

24 Home Land property, the mortgagee or the

25 Secretary shall only pursue liquidation after of-
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1 fering to transfer the account to another eligi2 ble Hawaiian family or the Department of Ha3 waiian Home Lands.

4 ‘‘(B) LIMITATION.—If, after action is

5 taken under subparagraph (A), the mortgagee

6 or the Secretary subsequently proceeds to liq7 uidate the account, the mortgagee or the Sec8 retary shall not sell, transfer, or otherwise dis9 pose of or alienate the property described in

10 subparagraph (A) except to another eligible Ha11 waiian family or to the Department of Hawai12 ian Home Lands.

13 ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE

14 FUND.—

15 ‘‘(1) ESTABLISHMENT.—There is established in

16 the Treasury of the United States the Hawaiian

17 Housing Loan Guarantee Fund for the purpose of

18 providing loan guarantees under this section.

19 ‘‘(2) CREDITS.—The Guarantee Fund shall be

20 credited with—

21 ‘‘(A) any amount, claims, notes, mort22 gages, contracts, and property acquired by the

23 Secretary under this section, and any collections

24 and proceeds therefrom;
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1 ‘‘(B) any amounts appropriated pursuant

2 to paragraph (7);

3 ‘‘(C) any guarantee fees collected under

4 subsection (d); and

5 ‘‘(D) any interest or earnings on amounts

6 invested under paragraph (4).

7 ‘‘(3) USE.—Amounts in the Guarantee Fund

8 shall be available, to the extent provided in appro9 priations Acts, for—

10 ‘‘(A) fulfilling any obligations of the Sec11 retary with respect to loans guaranteed under

12 this section, including the costs (as that term is

13 defined in section 502 of the Federal Credit Re14 form Act of 1990 (2 U.S.C. 661a)) of such

15 loans;

16 ‘‘(B) paying taxes, insurance, prior liens,

17 expenses necessary to make fiscal adjustment in

18 connection with the application and transmittal

19 of collections, and other expenses and advances

20 to protect the Secretary for loans which are

21 guaranteed under this section or held by the

22 Secretary;

23 ‘‘(C) acquiring such security property at

24 foreclosure sales or otherwise;
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•HR 5640 EH

1 ‘‘(D) paying administrative expenses in

2 connection with this section; and

3 ‘‘(E) reasonable and necessary costs of re4 habilitation and repair to properties that the

5 Secretary holds or owns pursuant to this sec6 tion.

7 ‘‘(4) INVESTMENT.—Any amounts in the Guar8 antee Fund determined by the Secretary to be in ex9 cess of amounts currently required at the time of the

10 determination to carry out this section may be in11 vested in obligations of the United States.

12 ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR13 ANTEE LOANS AND MORTGAGES.—

14 ‘‘(A) REQUIREMENT OF APPROPRIA15 TIONS.—The authority of the Secretary to enter

16 into commitments to guarantee loans under this

17 section shall be effective for any fiscal year to

18 the extent, or in such amounts as are, or have

19 been, provided in appropriations Acts, without

20 regard to the fiscal year for which such

21 amounts were appropriated.

22 ‘‘(B) LIMITATIONS ON COSTS OF GUARAN23 TEES.—The authority of the Secretary to enter

24 into commitments to guarantee loans under this

25 section shall be effective for any fiscal year only
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1 to the extent that amounts in the Guarantee

2 Fund are or have been made available in appro3 priations Acts to cover the costs (as that term

4 is defined in section 502 of the Federal Credit

5 Reform Act of 1990 (2 U.S.C. 661a)) of such

6 loan guarantees for such fiscal year. Any

7 amounts appropriated pursuant to this subpara8 graph shall remain available until expended.

9 ‘‘(C) LIMITATION ON OUTSTANDING AG10 GREGATE PRINCIPAL AMOUNT.—Subject to the

11 limitations in subparagraphs (A) and (B), the

12 Secretary may enter into commitments to guar13 antee loans under this section for each of fiscal

14 years 2001, 2002, 2003, 2004, and 2005 with

15 an aggregate outstanding principal amount not

16 exceeding $100,000,000 for each such fiscal

17 year.

18 ‘‘(6) LIABILITIES.—All liabilities and obliga19 tions of the assets credited to the Guarantee Fund

20 under paragraph (2)(A) shall be liabilities and obli21 gations of the Guarantee Fund.

22 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

23 There are authorized to be appropriated to the

24 Guarantee Fund to carry out this section such sums
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1 as may be necessary for each of fiscal years 2001,

2 2002, 2003, 2004, and 2005.

3 ‘‘(k) REQUIREMENTS FOR STANDARD HOUSING.—

4 ‘‘(1) IN GENERAL.—The Secretary shall, by

5 regulation, establish housing safety and quality

6 standards to be applied for use under this section.

7 ‘‘(2) STANDARDS.—The standards referred to

8 in paragraph (1) shall—

9 ‘‘(A) provide sufficient flexibility to permit

10 the use of various designs and materials in

11 housing acquired with loans guaranteed under

12 this section; and

13 ‘‘(B) require each dwelling unit in any

14 housing acquired in the manner described in

15 subparagraph (A) to—

16 ‘‘(i) be decent, safe, sanitary, and

17 modest in size and design;

18 ‘‘(ii) conform with applicable general

19 construction standards for the region in

20 which the housing is located;

21 ‘‘(iii) contain a plumbing system

22 that—

23 ‘‘(I) uses a properly installed sys24 tem of piping;
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1 ‘‘(II) includes a kitchen sink and

2 a partitional bathroom with lavatory,

3 toilet, and bath or shower; and

4 ‘‘(III) uses water supply, plumb5 ing, and sewage disposal systems that

6 conform to any minimum standards

7 established by the applicable county or

8 State;

9 ‘‘(iv) contain an electrical system

10 using wiring and equipment properly in11 stalled to safely supply electrical energy for

12 adequate lighting and for operation of ap13 pliances that conforms to any appropriate

14 county, State, or national code;

15 ‘‘(v) be not less than the size provided

16 under the applicable locally adopted stand17 ards for size of dwelling units, except that

18 the Secretary, upon request of the Depart19 ment of Hawaiian Home Lands may waive

20 the size requirements under this para21 graph; and

22 ‘‘(vi) conform with the energy per23 formance requirements for new construc24 tion established by the Secretary under

25 section 526(a) of the National Housing
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1 Act (12 U.S.C.A. 1735f–4), unless the Sec2 retary determines that the requirements

3 are not applicable.

4 ‘‘(l) APPLICABILITY OF CIVIL RIGHTS STATUTES.—

5 To the extent that the requirements of title VI of the Civil

6 Rights Act of 1964 (42 U.S.C. 2000d et seq.) or of the

7 Fair Housing Act (42 U.S.C.A. 3601 et seq.) apply to a

8 guarantee provided under this subsection, nothing in the

9 requirements concerning discrimination on the basis of

10 race shall be construed to prevent the provision of the

11 guarantee to an eligible entity on the basis that the entity

12 serves Native Hawaiian families or is a Native Hawaiian

13 family.’’.

14 TITLE VI—MANUFACTURED

15 HOUSING IMPROVEMENT

16 SEC. 601. SHORT TITLE; REFERENCES.

17 (a) SHORT TITLE.—This title may be cited as the

18 ‘‘Manufactured Housing Improvement Act of 2000’’.

19 (b) REFERENCES.—Whenever in this title an amend20 ment is expressed in terms of an amendment to, or repeal

21 of, a section or other provision, the reference shall be con22 sidered to be made to that section or other provision of

23 the National Manufactured Housing Construction and

24 Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).
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1 SEC. 602. FINDINGS AND PURPOSES.

2 Section 602 (42 U.S.C. 5401) is amended to read as

3 follows:

4 ‘‘SEC. 602. FINDINGS AND PURPOSES.

5 ‘‘(a) FINDINGS.—Congress finds that—

6 ‘‘(1) manufactured housing plays a vital role in

7 meeting the housing needs of the Nation; and

8 ‘‘(2) manufactured homes provide a significant

9 resource for affordable homeownership and rental

10 housing accessible to all Americans.

11 ‘‘(b) PURPOSES.—The purposes of this title are—

12 ‘‘(1) to protect the quality, durability, safety,

13 and affordability of manufactured homes;

14 ‘‘(2) to facilitate the availability of affordable

15 manufactured homes and to increase homeownership

16 for all Americans;

17 ‘‘(3) to provide for the establishment of prac18 tical, uniform, and, to the extent possible, perform19 ance-based Federal construction standards for man20 ufactured homes;

21 ‘‘(4) to encourage innovative and cost-effective

22 construction techniques for manufactured homes;

23 ‘‘(5) to protect residents of manufactured

24 homes with respect to personal injuries and the

25 amount of insurance costs and property damages in
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1 manufactured housing, consistent with the other

2 purposes of this section;

3 ‘‘(6) to establish a balanced consensus process

4 for the development, revision, and interpretation of

5 Federal construction and safety standards for manu6 factured homes and related regulations for the en7 forcement of such standards;

8 ‘‘(7) to ensure uniform and effective enforce9 ment of Federal construction and safety standards

10 for manufactured homes; and

11 ‘‘(8) to ensure that the public interest in, and

12 need for, affordable manufactured housing is duly

13 considered in all determinations relating to the Fed14 eral standards and their enforcement.’’.

15 SEC. 603. DEFINITIONS.

16 (a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is

17 amended—

18 (1) in paragraph (2), by striking ‘‘dealer’’ and

19 inserting ‘‘retailer’’;

20 (2) in paragraph (12), by striking ‘‘and’’ at the

21 end;

22 (3) in paragraph (13), by striking the period at

23 the end and inserting a semicolon; and

24 (4) by adding at the end the following:
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1 ‘‘(14) ‘administering organization’ means the

2 recognized, voluntary, private sector, consensus

3 standards body with specific experience in developing

4 model residential building codes and standards in5 volving all disciplines regarding construction and

6 safety that administers the consensus standards

7 through a development process;

8 ‘‘(15) ‘consensus committee’ means the com9 mittee established under section 604(a)(3);

10 ‘‘(16) ‘consensus standards development proc11 ess’ means the process by which additions, revisions,

12 and interpretations to the Federal manufactured

13 home construction and safety standards and enforce14 ment regulations shall be developed and rec15 ommended to the Secretary by the consensus com16 mittee;

17 ‘‘(17) ‘primary inspection agency’ means a

18 State agency or private organization that has been

19 approved by the Secretary to act as a design ap20 proval primary inspection agency or a production in21 spection primary inspection agency, or both;

22 ‘‘(18) ‘design approval primary inspection agen23 cy’ means a State agency or private organization

24 that has been approved by the Secretary to evaluate
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1 and either approve or disapprove manufactured

2 home designs and quality control procedures;

3 ‘‘(19) ‘installation standards’ means reasonable

4 specifications for the installation of a manufactured

5 home, at the place of occupancy, to ensure proper

6 siting, the joining of all sections of the home, and

7 the installation of stabilization, support, or anchor8 ing systems;

9 ‘‘(20) ‘monitoring’ means the process of peri10 odic review of the primary inspection agencies, by

11 the Secretary or by a State agency under an ap12 proved State plan pursuant to section 623, in ac13 cordance with regulations promulgated under this

14 title, giving due consideration to the recommenda15 tions of the consensus committee under section

16 604(b), which process shall be for the purpose of en17 suring that the primary inspection agencies are dis18 charging their duties under this title; and

19 ‘‘(21) ‘production inspection primary inspection

20 agency’ means a State agency or private organiza21 tion that has been approved by the Secretary to

22 evaluate the ability of manufactured home manufac23 turing plants to comply with approved quality con24 trol procedures and with the Federal manufactured

25 home construction and safety standards promulgated
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1 hereunder, including the inspection of homes in the

2 plant.’’.

3 (b) CONFORMING AMENDMENTS.—The National

4 Manufactured Housing Construction and Safety Stand5 ards Act of 1974 (42 U.S.C. 5401 et seq.) is amended—

6 (1) in section 613 (42 U.S.C. 5412), by striking

7 ‘‘dealer’’ each place it appears and inserting ‘‘re8 tailer’’;

9 (2) in section 614(f) (42 U.S.C. 5413(f)), by

10 striking ‘‘dealer’’ each place it appears and inserting

11 ‘‘retailer’’;

12 (3) in section 615 (42 U.S.C. 5414)—

13 (A) in subsection (b)(1), by striking ‘‘deal14 er’’ and inserting ‘‘retailer’’;

15 (B) in subsection (b)(3), by striking ‘‘deal16 er or dealers’’ and inserting ‘‘retailer or retail17 ers’’; and

18 (C) in subsections (d) and (f), by striking

19 ‘‘dealers’’ each place it appears and inserting

20 ‘‘retailers’’;

21 (4) in section 616 (42 U.S.C. 5415), by striking

22 ‘‘dealer’’ and inserting ‘‘retailer’’; and

23 (5) in section 623(c)(9), by striking ‘‘dealers’’

24 and inserting ‘‘retailers’’.
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1 SEC. 604. FEDERAL MANUFACTURED HOME CONSTRUC2 TION AND SAFETY STANDARDS.

3 Section 604 (42 U.S.C. 5403) is amended—

4 (1) by striking subsections (a) and (b) and in5 serting the following:

6 ‘‘(a) ESTABLISHMENT.—

7 ‘‘(1) AUTHORITY.—The Secretary shall estab8 lish, by order, appropriate Federal manufactured

9 home construction and safety standards, each of

10 which—

11 ‘‘(A) shall—

12 ‘‘(i) be reasonable and practical;

13 ‘‘(ii) meet high standards of protec14 tion consistent with the purposes of this

15 title; and

16 ‘‘(iii) be performance-based and objec17 tively stated, unless clearly inappropriate;

18 and

19 ‘‘(B) except as provided in subsection (b),

20 shall be established in accordance with the con21 sensus standards development process.

22 ‘‘(2) CONSENSUS STANDARDS AND REGU23 LATORY DEVELOPMENT PROCESS.—

24 ‘‘(A) INITIAL AGREEMENT.—Not later

25 than 180 days after the date of the enactment

26 of the Manufactured Housing Improvement Act
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1 of 2000, the Secretary shall enter into a con2 tract with an administering organization. The

3 contractual agreement shall—

4 ‘‘(i) terminate on the date on which a

5 contract is entered into under subpara6 graph (B); and

7 ‘‘(ii) require the administering organi8 zation to—

9 ‘‘(I) recommend the initial mem10 bers of the consensus committee

11 under paragraph (3);

12 ‘‘(II) administer the consensus

13 standards development process until

14 the termination of that agreement;

15 and

16 ‘‘(III) administer the consensus

17 development and interpretation proc18 ess for procedural and enforcement

19 regulations and regulations specifying

20 the permissible scope and conduct of

21 monitoring until the termination of

22 that agreement.

23 ‘‘(B) COMPETITIVELY PROCURED CON24 TRACT.—Upon the expiration of the 4-year pe25 riod beginning on the date on which all mem-
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1 bers of the consensus committee are appointed

2 under paragraph (3), the Secretary shall, using

3 competitive procedures (as such term is defined

4 in section 4 of the Office of Federal Procure5 ment Policy Act), enter into a competitively

6 awarded contract with an administering organi7 zation. The administering organization shall ad8 minister the consensus process for the develop9 ment and interpretation of the Federal stand10 ards, the procedural and enforcement regula11 tions, and regulations specifying the permissible

12 scope and conduct of monitoring, in accordance

13 with this title.

14 ‘‘(C) PERFORMANCE REVIEW.—The

15 Secretary—

16 ‘‘(i) shall periodically review the per17 formance of the administering organiza18 tion; and

19 ‘‘(ii) may replace the administering

20 organization with another qualified tech21 nical or building code organization, pursu22 ant to competitive procedures, if the Sec23 retary determines in writing that the ad24 ministering organization is not fulfilling

25 the terms of the agreement or contract to
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1 which the administering organization is

2 subject or upon the expiration of the

3 agreement or contract.

4 ‘‘(3) CONSENSUS COMMITTEE.—

5 ‘‘(A) PURPOSE.—There is established a

6 committee to be known as the ‘consensus com7 mittee’, which shall, in accordance with this

8 title—

9 ‘‘(i) provide periodic recommendations

10 to the Secretary to adopt, revise, and inter11 pret the Federal manufactured housing

12 construction and safety standards in ac13 cordance with this subsection;

14 ‘‘(ii) provide periodic recommenda15 tions to the Secretary to adopt, revise, and

16 interpret the procedural and enforcement

17 regulations, including regulations speci18 fying the permissible scope and conduct of

19 monitoring in accordance with subsection

20 (b);

21 ‘‘(iii) be organized and carry out its

22 business in a manner that guarantees a

23 fair opportunity for the expression and

24 consideration of various positions and for

25 public participation; and
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1 ‘‘(iv) be deemed to be an advisory

2 committee not composed of Federal em3 ployees.

4 ‘‘(B) MEMBERSHIP.—The consensus com5 mittee shall be composed of—

6 ‘‘(i) 21 voting members appointed by

7 the Secretary, after consideration of the

8 recommendations of the administering or9 ganization, from among individuals who

10 are qualified by background and experience

11 to participate in the work of the consensus

12 committee; and

13 ‘‘(ii) 1 nonvoting member appointed

14 by the Secretary to represent the Secretary

15 on the consensus committee.

16 ‘‘(C) DISAPPROVAL.—The Secretary shall

17 state, in writing, the reasons for failing to ap18 point any individual recommended under para19 graph (2)(A)(ii)(I).

20 ‘‘(D) SELECTION PROCEDURES AND RE21 QUIREMENTS.—Each member of the consensus

22 committee shall be appointed in accordance

23 with selection procedures, which shall be based

24 on the procedures for consensus committees

25 promulgated by the American National Stand-
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1 ards Institute (or successor organization), ex2 cept that the American National Standards In3 stitute interest categories shall be modified for

4 purposes of this paragraph to ensure equal rep5 resentation on the consensus committee of the

6 following interest categories:

7 ‘‘(i) PRODUCERS.—Seven producers or

8 retailers of manufactured housing.

9 ‘‘(ii) USERS.—Seven persons rep10 resenting consumer interests, such as con11 sumer organizations, recognized consumer

12 leaders, and owners who are residents of

13 manufactured homes.

14 ‘‘(iii) GENERAL INTEREST AND PUB15 LIC OFFICIALS.—Seven general interest

16 and public official members.

17 ‘‘(E) BALANCING OF INTERESTS.—

18 ‘‘(i) IN GENERAL.—In order to

19 achieve a proper balance of interests on

20 the consensus committee, the Secretary, in

21 appointing the members of the consensus

22 committee—

23 ‘‘(I) shall ensure that all directly

24 and materially affected interests have

25 the opportunity for fair and equitable
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1 participation without dominance by

2 any single interest; and

3 ‘‘(II) may reject the appointment

4 of any 1 or more individuals in order

5 to ensure that there is not dominance

6 by any single interest.

7 ‘‘(ii) DOMINANCE DEFINED.—In this

8 subparagraph, the term ‘dominance’ means

9 a position or exercise of dominant author10 ity, leadership, or influence by reason of

11 superior leverage, strength, or representa12 tion.

13 ‘‘(F) ADDITIONAL QUALIFICATIONS.—

14 ‘‘(i) FINANCIAL INDEPENDENCE.—No

15 individual appointed under subparagraph

16 (D)(ii) shall have, and 3 of the individuals

17 appointed under subparagraph (D)(iii)

18 shall not have—

19 ‘‘(I) a significant financial inter20 est in any segment of the manufac21 tured housing industry; or

22 ‘‘(II) a significant relationship to

23 any person engaged in the manufac24 tured housing industry.
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1 ‘‘(ii) POST-EMPLOYMENT BAN.—Each

2 individual described in clause (i) shall be

3 subject to a ban disallowing compensation

4 from the manufactured housing industry

5 during the period of, and during the 1-year

6 following, the membership of the individual

7 on the consensus committee.

8 ‘‘(G) MEETINGS.—

9 ‘‘(i) NOTICE; OPEN TO PUBLIC.—The

10 consensus committee shall provide advance

11 notice of each meeting of the consensus

12 committee to the Secretary and cause to be

13 published in the Federal Register advance

14 notice of each such meeting. All meetings

15 of the consensus committee shall be open

16 to the public.

17 ‘‘(ii) REIMBURSEMENT.—Members of

18 the consensus committee in attendance at

19 meetings of the consensus committee shall

20 be reimbursed for their actual expenses as

21 authorized by section 5703 of title 5,

22 United States Code, for persons employed

23 intermittently in Government service.
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1 ‘‘(H) ADMINISTRATION.—The consensus

2 committee and the administering organization

3 shall—

4 ‘‘(i) operate in conformance with the

5 procedures established by the American

6 National Standards Institute for the devel7 opment and coordination of American Na8 tional Standards; and

9 ‘‘(ii) apply to the American National

10 Standards Institute and take such other

11 actions as may be necessary to obtain ac12 creditation from the American National

13 Standards Institute.

14 ‘‘(I) STAFF AND TECHNICAL SUPPORT.—

15 The administering organization shall, upon the

16 request of the consensus committee—

17 ‘‘(i) provide reasonable staff resources

18 to the consensus committee; and

19 ‘‘(ii) furnish technical support in a

20 timely manner to any of the interest cat21 egories described in subparagraph (D) rep22 resented on the consensus committee, if—

23 ‘‘(I) the support is necessary to

24 ensure the informed participation of
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1 the consensus committee members;

2 and

3 ‘‘(II) the costs of providing the

4 support are reasonable.

5 ‘‘(J) DATE OF INITIAL APPOINTMENTS.—

6 The initial appointments of all of the members

7 of the consensus committee shall be completed

8 not later than 90 days after the date on which

9 a contractual agreement under paragraph

10 (2)(A) is entered into with the administering

11 organization.

12 ‘‘(4) REVISIONS OF STANDARDS.—

13 ‘‘(A) IN GENERAL.—Beginning on the date

14 on which all members of the consensus com15 mittee are appointed under paragraph (3), the

16 consensus committee shall, not less than once

17 during each 2-year period—

18 ‘‘(i) consider revisions to the Federal

19 manufactured home construction and safe20 ty standards; and

21 ‘‘(ii) submit proposed revised stand22 ards, if approved in a vote of the consensus

committee by 2 23 ⁄3 of the members, to the

24 Secretary in the form of a proposed rule,

25 including an economic analysis.
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1 ‘‘(B) PUBLICATION OF PROPOSED REVISED

2 STANDARDS.—

3 ‘‘(i) PUBLICATION BY SECRETARY.—

4 The consensus committee shall provide a

5 proposed revised standard under subpara6 graph (A)(ii) to the Secretary who shall,

7 not later than 30 days after receipt, cause

8 such proposed revised standard to be pub9 lished in the Federal Register for notice

10 and comment in accordance with section

11 553 of title 5, United States Code. Unless

12 clause (ii) applies, the Secretary shall pro13 vide an opportunity for public comment on

14 such proposed revised standard in accord15 ance with such section 553 and any such

16 comments shall be submitted directly to

17 the consensus committee, without delay.

18 ‘‘(ii) PUBLICATION OF REJECTED

19 PROPOSED REVISED STANDARDS.—If the

20 Secretary rejects the proposed revised

21 standard, the Secretary shall cause to be

22 published in the Federal Register the re23 jected proposed revised standard, the rea24 sons for rejection, and any recommended

25 modifications set forth.
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1 ‘‘(C) PRESENTATION OF PUBLIC COM2 MENTS; PUBLICATION OF RECOMMENDED REVI3 SIONS.—

4 ‘‘(i) PRESENTATION.—Any public

5 comments, views, and objections to a pro6 posed revised standard published under

7 subparagraph (B) shall be presented by

8 the Secretary to the consensus committee

9 upon their receipt and in the manner re10 ceived, in accordance with procedures es11 tablished by the American National Stand12 ards Institute.

13 ‘‘(ii) PUBLICATION BY THE SEC14 RETARY.—The consensus committee shall

15 provide to the Secretary any revision pro16 posed by the consensus committee, which

17 the Secretary shall, not later than 30 cal18 endar days after receipt, cause to be pub19 lished in the Federal Register a notice of

20 the recommended revisions of the con21 sensus committee to the standards, a no22 tice of the submission of the recommended

23 revisions to the Secretary, and a descrip24 tion of the circumstances under which the
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1 proposed revised standards could become

2 effective.

3 ‘‘(iii) PUBLICATION OF REJECTED

4 PROPOSED REVISED STANDARDS.—If the

5 Secretary rejects the proposed revised

6 standard, the Secretary shall cause to be

7 published in the Federal Register the re8 jected proposed revised standard, the rea9 sons for rejection, and any recommended

10 modifications set forth.

11 ‘‘(5) REVIEW BY THE SECRETARY.—

12 ‘‘(A) IN GENERAL.—The Secretary shall

13 either adopt, modify, or reject a standard, as

14 submitted by the consensus committee under

15 paragraph (4)(A).

16 ‘‘(B) TIMING.—Not later than 12 months

17 after the date on which a standard is submitted

18 to the Secretary by the consensus committee,

19 the Secretary shall take action regarding such

20 standard under subparagraph (C).

21 ‘‘(C) PROCEDURES.—If the Secretary—

22 ‘‘(i) adopts a standard recommended

23 by the consensus committee, the Secretary

24 shall—
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1 ‘‘(I) issue a final order without

2 further rulemaking; and

3 ‘‘(II) cause the final order to be

4 published in the Federal Register;

5 ‘‘(ii) determines that any standard

6 should be rejected, the Secretary shall—

7 ‘‘(I) reject the standard; and

8 ‘‘(II) cause to be published in the

9 Federal Register a notice to that ef10 fect, together with the reason or rea11 sons for rejecting the proposed stand12 ard; or

13 ‘‘(iii) determines that a standard rec14 ommended by the consensus committee

15 should be modified, the Secretary shall—

16 ‘‘(I) cause to be published in the

17 Federal Register the proposed modi18 fied standard, together with an expla19 nation of the reason or reasons for the

20 determination of the Secretary; and

21 ‘‘(II) provide an opportunity for

22 public comment in accordance with

23 section 553 of title 5, United States

24 Code.
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1 ‘‘(D) FINAL ORDER.—Any final standard

2 under this paragraph shall become effective

3 pursuant to subsection (c).

4 ‘‘(6) FAILURE TO ACT.—If the Secretary fails

5 to take final action under paragraph (5) and to

6 cause notice of the action to be published in the

7 Federal Register before the expiration of the 12-

8 month period beginning on the date on which the

9 proposed revised standard is submitted to the Sec10 retary under paragraph (4)(A)—

11 ‘‘(A) the Secretary shall appear in person

12 before the appropriate housing and appropria13 tions subcommittees and committees of the

14 House of Representatives and the Senate (re15 ferred to in this paragraph as the ‘committees’)

16 on a date or dates to be specified by the com17 mittees, but in no event later than 30 days

18 after the expiration of that 12-month period,

19 and shall state before the committees the rea20 sons for failing to take final action as required

21 under paragraph (5); and

22 ‘‘(B) if the Secretary does not appear in

23 person as required under subparagraph (A), the

24 Secretary shall thereafter, and until such time

25 as the Secretary does appear as required under
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•HR 5640 EH

1 subparagraph (A), be prohibited from expend2 ing any funds collected under authority of this

3 title in an amount greater than that collected

4 and expended in the fiscal year immediately

5 preceding the date of the enactment of the

6 Manufactured Housing Improvement Act of

7 2000, indexed for inflation as determined by

8 the Congressional Budget Office.

9 ‘‘(b) OTHER ORDERS.—

10 ‘‘(1) REGULATIONS.—The Secretary may issue

11 procedural and enforcement regulations and revi12 sions to existing regulations as necessary to imple13 ment the provisions of this title. The consensus com14 mittee may submit to the Secretary proposed proce15 dural and enforcement regulations and recommenda16 tions for the revision of such regulations.

17 ‘‘(2) INTERPRETATIVE BULLETINS.—The Sec18 retary may issue interpretative bulletins to clarify

19 the meaning of any Federal manufactured home

20 construction and safety standard or procedural and

21 enforcement regulation. The consensus committee

22 may submit to the Secretary proposed interpretative

23 bulletins to clarify the meaning of any Federal man24 ufactured home construction and safety standard or

25 procedural and enforcement regulation.
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1 ‘‘(3) REVIEW BY CONSENSUS COMMITTEE.—Be2 fore issuing a procedural or enforcement regulation

3 or an interpretative bulletin—

4 ‘‘(A) the Secretary shall—

5 ‘‘(i) submit the proposed procedural

6 or enforcement regulation or interpretative

7 bulletin to the consensus committee; and

8 ‘‘(ii) provide the consensus committee

9 with a period of 120 days to submit writ10 ten comments to the Secretary on the pro11 posed procedural or enforcement regulation

12 or the interpretative bulletin; and

13 ‘‘(B) if the Secretary rejects any signifi14 cant comment provided by the consensus com15 mittee under subparagraph (A), the Secretary

16 shall provide a written explanation of the rea17 sons for the rejection to the consensus com18 mittee; and

19 ‘‘(C) following compliance with subpara20 graphs (A) and (B), the Secretary shall—

21 ‘‘(i) cause the proposed regulation or

22 interpretative bulletin and the consensus

23 committee’s written comments, along with

24 the Secretary’s response thereto, to be

25 published in the Federal Register; and
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•HR 5640 EH

1 ‘‘(ii) provide an opportunity for public

2 comment in accordance with section 553 of

3 title 5, United States Code.

4 ‘‘(4) REQUIRED ACTION.—Not later than 120

5 days after the date on which the Secretary receives

6 a proposed regulation or interpretative bulletin sub7 mitted by the consensus committee, the Secretary

8 shall—

9 ‘‘(A) approve the proposal and cause the

10 proposed regulation or interpretative bulletin to

11 be published for public comment in accordance

12 with section 553 of title 5, United States Code;

13 or

14 ‘‘(B) reject the proposed regulation or in15 terpretative bulletin and—

16 ‘‘(i) provide to the consensus com17 mittee a written explanation of the reasons

18 for rejection; and

19 ‘‘(ii) cause to be published in the Fed20 eral Register the rejected proposed regula21 tion or interpretive bulletin, the reasons for

22 rejection, and any recommended modifica23 tions set forth.

24 ‘‘(5) AUTHORITY TO ACT AND EMERGENCY.—If

25 the Secretary determines, in writing, that such ac-
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•HR 5640 EH

1 tion is necessary to address an issue on which the

2 Secretary determines that the consensus committee

3 has not made a timely recommendation following a

4 request by the Secretary, or in order to respond to

5 an emergency that jeopardizes the public health or

6 safety, the Secretary may issue an order that is not

7 developed under the procedures set forth in sub8 section (a) or in this subsection, if the Secretary—

9 ‘‘(A) provides to the consensus committee

10 a written description and sets forth the reasons

11 why action is necessary and all supporting doc12 umentation; and

13 ‘‘(B) issues the order after notice and an

14 opportunity for public comment in accordance

15 with section 553 of title 5, United States Code,

16 and causes the order to be published in the

17 Federal Register.

18 ‘‘(6) CHANGES.—Any statement of policies,

19 practices, or procedures relating to construction and

20 safety standards, regulations, inspections, moni21 toring, or other enforcement activities that con22 stitutes a statement of general or particular applica23 bility to implement, interpret, or prescribe law or

24 policy by the Secretary is subject to subsection (a)
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1 or this subsection. Any change adopted in violation

2 of subsection (a) or this subsection is void.

3 ‘‘(7) TRANSITION.—Until the date on which the

4 consensus committee is appointed pursuant to sec5 tion 604(a)(3), the Secretary may issue proposed or6 ders, pursuant to notice and comment in accordance

7 with section 553 of title 5, United States Code, that

8 are not developed under the procedures set forth in

9 this section for new and revised standards.’’;

10 (2) in subsection (d), by adding at the end the

11 following: ‘‘Federal preemption under this subsection

12 shall be broadly and liberally construed to ensure

13 that disparate State or local requirements or stand14 ards do not affect the uniformity and comprehen15 siveness of the standards promulgated under this

16 section nor the Federal superintendence of the man17 ufactured housing industry as established by this

18 title. Subject to section 605, there is reserved to

19 each State the right to establish standards for the

20 stabilizing and support systems of manufactured

21 homes sited within that State, and for the founda22 tions on which manufactured homes sited within

23 that State are installed, and the right to enforce

24 compliance with such standards, except that such

25 standards shall be consistent with the purposes of
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•HR 5640 EH

1 this title and shall be consistent with the design of

2 the manufacturer.’’;

3 (3) by striking subsection (e);

4 (4) in subsection (f), by striking the subsection

5 designation and all of the matter that precedes para6 graph (1) and inserting the following:

7 ‘‘(e) CONSIDERATIONS IN ESTABLISHING AND IN8 TERPRETING STANDARDS AND REGULATIONS.—The con9 sensus committee, in recommending standards, regula10 tions, and interpretations, and the Secretary, in estab11 lishing standards or regulations or issuing interpretations

12 under this section, shall—’’;

13 (5) by striking subsection (g);

14 (6) in the first sentence of subsection (j), by

15 striking ‘‘subsection (f)’’ and inserting ‘‘subsection

16 (e)’’; and

17 (7) by redesignating subsections (h), (i), and

18 (j), as subsections (f), (g), and (h), respectively.

19 SEC. 605. ABOLISHMENT OF NATIONAL MANUFACTURED

20 HOME ADVISORY COUNCIL; MANUFACTURED

21 HOME INSTALLATION.

22 (a) IN GENERAL.—Section 605 (42 U.S.C. 5404) is

23 amended to read as follows:
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1 ‘‘SEC. 605. MANUFACTURED HOME INSTALLATION.

2 ‘‘(a) PROVISION OF INSTALLATION DESIGN AND IN3 STRUCTIONS.—A manufacturer shall provide with each

4 manufactured home, design and instructions for the in5 stallation of the manufactured home that have been ap6 proved by a design approval primary inspection agency.

7 After establishment of model standards under subsection

8 (b)(2), a design approval primary inspection agency may

9 not give such approval unless a design and instruction pro10 vides equal or greater protection than the protection pro11 vided under such model standards.

12 ‘‘(b) MODEL MANUFACTURED HOME INSTALLATION

13 STANDARDS.—

14 ‘‘(1) PROPOSED MODEL STANDARDS.—Not later

15 than 18 months after the date on which the initial

16 appointments of all of the members of the consensus

17 committee are completed, the consensus committee

18 shall develop and submit to the Secretary proposed

19 model manufactured home installation standards,

20 which shall, to the maximum extent practicable, tak21 ing into account the factors described in section

22 604(e), be consistent with—

23 ‘‘(A) the manufactured home designs that

24 have been approved by a design approval pri25 mary inspection agency; and
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•HR 5640 EH

1 ‘‘(B) the designs and instructions for the

2 installation of manufactured homes provided by

3 manufacturers under subsection (a).

4 ‘‘(2) ESTABLISHMENT OF MODEL STAND5 ARDS.—Not later than 12 months after receiving the

6 proposed model standards submitted under para7 graph (1), the Secretary shall develop and establish

8 model manufactured home installation standards,

9 which shall, to the maximum extent practicable, tak10 ing into account the factors described in section

11 604(e), be consistent with—

12 ‘‘(A) the manufactured home designs that

13 have been approved by a design approval pri14 mary inspection agency; and

15 ‘‘(B) the designs and instructions for the

16 installation of manufactured homes provided by

17 manufacturers under subsection (a).

18 ‘‘(3) FACTORS FOR CONSIDERATION.—

19 ‘‘(A) CONSENSUS COMMITTEE.—In devel20 oping the proposed model standards under

21 paragraph (1), the consensus committee shall

22 consider the factors described in section 604(e).

23 ‘‘(B) SECRETARY.—In developing and es24 tablishing the model standards under paragraph
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1 (2), the Secretary shall consider the factors de2 scribed in section 604(e).

3 ‘‘(4) ISSUANCE.—The model manufactured

4 home installation standards shall be issued after no5 tice and an opportunity for public comment in ac6 cordance with section 553 of title 5, United States

7 Code.

8 ‘‘(c) MANUFACTURED HOME INSTALLATION PRO9 GRAMS.—

10 ‘‘(1) PROTECTION OF MANUFACTURED HOUS11 ING RESIDENTS DURING INITIAL PERIOD.—During

12 the 5-year period beginning on the date of the enact13 ment of the Manufactured Housing Improvement

14 Act of 2000, no State or manufacturer may estab15 lish or implement any installation standards that, in

16 the determination of the Secretary, provide less pro17 tection to the residents of manufactured homes than

18 the protection provided by the installation standards

19 in effect with respect to the State or manufacturer,

20 as applicable, on the date of the enactment of the

21 Manufactured Housing Improvement Act of 2000.

22 ‘‘(2) INSTALLATION STANDARDS.—

23 ‘‘(A) ESTABLISHMENT OF INSTALLATION

24 PROGRAM.—Not later than the expiration of the

25 5-year period described in paragraph (1), the
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1 Secretary shall establish an installation pro2 gram that meets the requirements of paragraph

3 (3) for the enforcement of installation stand4 ards in each State described in subparagraph

5 (B) of this paragraph.

6 ‘‘(B) IMPLEMENTATION OF INSTALLATION

7 PROGRAM.—Beginning on the expiration of the

8 5-year period described in paragraph (1), the

9 Secretary shall implement the installation pro10 gram established under subparagraph (A) in

11 each State that does not have an installation

12 program established by State law that meets

13 the requirements of paragraph (3).

14 ‘‘(C) CONTRACTING OUT OF IMPLEMENTA15 TION.—In carrying out subparagraph (B), the

16 Secretary may contract with an appropriate

17 agent to implement the installation program es18 tablished under that subparagraph, except that

19 such agent shall not be a person or entity other

20 than a government, nor an affiliate or sub21 sidiary of such a person or entity, that has en22 tered into a contract with the Secretary to im23 plement any other regulatory program under

24 this title.
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1 ‘‘(3) REQUIREMENTS.—An installation program

2 meets the requirements of this paragraph if it is a

3 program regulating the installation of manufactured

4 homes that includes—

5 ‘‘(A) installation standards that, in the de6 termination of the Secretary, provide protection

7 to the residents of manufactured homes that

8 equals or exceeds the protection provided to

9 those residents by—

10 ‘‘(i) the model manufactured home in11 stallation standards established by the Sec12 retary under subsection (b)(2); or

13 ‘‘(ii) the designs and instructions pro14 vided by manufacturers under subsection

15 (a), if the Secretary determines that such

16 designs and instructions provide protection

17 to the residents of manufactured homes

18 that equals or exceeds the protection pro19 vided by the model manufactured home in20 stallation standards established by the Sec21 retary under subsection (b)(2);

22 ‘‘(B) the training and licensing of manu23 factured home installers; and

24 ‘‘(C) inspection of the installation of manu25 factured homes.’’.
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1 (b) CONFORMING AMENDMENTS.—Section 623(c)

2 (42 U.S.C. 5422(c)) is amended—

3 (1) in paragraph (10), by striking ‘‘and’’ at the

4 end;

5 (2) by redesignating paragraph (11) as para6 graph (13); and

7 (3) by inserting after paragraph (10) the fol8 lowing:

9 ‘‘(11) with respect to any State plan submitted

10 on or after the expiration of the 5-year period begin11 ning on the date of the enactment of the Manufac12 tured Housing Improvement Act of 2000, provides

13 for an installation program established by State law

14 that meets the requirements of section 605(c)(3);’’.

15 SEC. 606. PUBLIC INFORMATION.

16 Section 607 (42 U.S.C. 5406) is amended—

17 (1) in subsection (a)—

18 (A) by inserting ‘‘to the Secretary’’ after

19 ‘‘submit’’; and

20 (B) by adding at the end the following:

21 ‘‘The Secretary shall submit such cost and

22 other information to the consensus committee

23 for evaluation.’’;

24 (2) in subsection (d), by inserting ‘‘, the con25 sensus committee,’’ after ‘‘public’’; and
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1 (3) by striking subsection (c) and redesignating

2 subsections (d) and (e) as subsections (c) and (d),

3 respectively.

4 SEC. 607. RESEARCH, TESTING, DEVELOPMENT, AND TRAIN5 ING.

6 (a) IN GENERAL.—Section 608(a) (42 U.S.C.

7 5407(a)) is amended—

8 (1) in paragraph (2), by striking ‘‘and’’ at the

9 end;

10 (2) in paragraph (3), by striking the period at

11 the end and inserting a semicolon; and

12 (3) by adding at the end the following:

13 ‘‘(4) encouraging the government-sponsored

14 housing entities to actively develop and implement

15 secondary market securitization programs for the

16 FHA manufactured home loans and those of other

17 loan programs, as appropriate, thereby promoting

18 the availability of affordable manufactured homes to

19 increase homeownership for all people in the United

20 States; and

21 ‘‘(5) reviewing the programs for FHA manufac22 tured home loans and developing any changes to

23 such programs to promote the affordability of manu24 factured homes, including changes in loan terms,

25 amortization periods, regulations, and procedures.’’.
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1 (b) DEFINITIONS.—Section 608 (42 U.S.C. 5407) is

2 amended by adding at the end the following:

3 ‘‘(c) DEFINITIONS.—For purposes of this section, the

4 following definitions shall apply:

5 ‘‘(1) GOVERNMENT-SPONSORED HOUSING ENTI6 TIES.—The term ‘government-sponsored housing en7 tities’ means the Government National Mortgage As8 sociation of the Department of Housing and Urban

9 Development, the Federal National Mortgage Asso10 ciation, and the Federal Home Loan Mortgage Cor11 poration.

12 ‘‘(2) FHA MANUFACTURED HOME LOAN.—The

13 term ‘FHA manufactured home loan’ means a loan

14 that—

15 ‘‘(A) is insured under title I of the Na16 tional Housing Act and is made for the purpose

17 of financing alterations, repairs, or improve18 ments on or in connection with an existing

19 manufactured home, the purchase of a manu20 factured home, the purchase of a manufactured

21 home and a lot on which to place the home, or

22 the purchase only of a lot on which to place a

23 manufactured home; or
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1 ‘‘(B) is otherwise insured under the Na2 tional Housing Act and made for or in connec3 tion with a manufactured home.’’.

4 SEC. 608. PROHIBITED ACTS.

5 Section 610(a) (42 U.S.C. 5409(a)) is amended—

6 (1) in paragraph (5), by striking ‘‘or’’ at the

7 end;

8 (2) in paragraph (6), by striking the period at

9 the end and inserting ‘‘; or’’; and

10 (3) by adding at the end the following new

11 paragraph:

12 ‘‘(7) after the expiration of the period specified

13 in section 605(c)(2)(B), fail to comply with the re14 quirements for the installation program required by

15 section 605 in any State that has not adopted and

16 implemented a State installation program.’’.

17 SEC. 609. FEES.

18 Section 620 (42 U.S.C. 5419) is amended to read as

19 follows:

20 ‘‘SEC. 620. AUTHORITY TO COLLECT FEE.

21 ‘‘(a) IN GENERAL.—In carrying out inspections

22 under this title, in developing standards and regulations

23 pursuant to section 604, and in facilitating the acceptance

24 of the affordability and availability of manufactured hous25 ing within the Department, the Secretary may—
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1 ‘‘(1) establish and collect from manufactured

2 home manufacturers a reasonable fee, as may be

3 necessary to offset the expenses incurred by the Sec4 retary in connection with carrying out the respon5 sibilities of the Secretary under this title,

6 including—

7 ‘‘(A) conducting inspections and moni8 toring;

9 ‘‘(B) providing funding to States for the

10 administration and implementation of approved

11 State plans under section 623, including rea12 sonable funding for cooperative educational and

13 training programs designed to facilitate uniform

14 enforcement under this title, which funds may

15 be paid directly to the States or may be paid

16 or provided to any person or entity designated

17 to receive and disburse such funds by coopera18 tive agreements among participating States,

19 provided that such person or entity is not other20 wise an agent of the Secretary under this title;

21 ‘‘(C) providing the funding for a noncareer

22 administrator within the Department to admin23 ister the manufactured housing program;
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1 ‘‘(D) providing the funding for salaries and

2 expenses of employees of the Department to

3 carry out the manufactured housing program;

4 ‘‘(E) administering the consensus com5 mittee as set forth in section 604;

6 ‘‘(F) facilitating the acceptance of the

7 quality, durability, safety, and affordability of

8 manufactured housing within the Department;

9 and

10 ‘‘(G) the administration and enforcement

11 of the installation standards authorized by sec12 tion 605 in States in which the Secretary is re13 quired to implement an installation program

14 after the expiration of the 5-year period set

15 forth in section 605(c)(2)(B), and the adminis16 tration and enforcement of a dispute resolution

17 program described in section 623(c)(12) in

18 States in which the Secretary is required to im19 plement such a program after the expiration of

20 the 5-year period set forth in section 623(g)(2);

21 and

22 ‘‘(2) subject to subsection (e), use amounts

23 from any fee collected under paragraph (1) of this

24 subsection to pay expenses referred to in that para25 graph, which shall be exempt and separate from any
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1 limitations on the Department regarding full-time

2 equivalent positions and travel.

3 ‘‘(b) CONTRACTORS.—In using amounts from any fee

4 collected under this section, the Secretary shall ensure

5 that separate and independent contractors are retained to

6 carry out monitoring and inspection work and any other

7 work that may be delegated to a contractor under this

8 title.

9 ‘‘(c) PROHIBITED USE.—No amount from any fee

10 collected under this section may be used for any purpose

11 or activity not specifically authorized by this title, unless

12 such activity was already engaged in by the Secretary

13 prior to the date of the enactment of the Manufactured

14 Housing Improvement Act of 2000.

15 ‘‘(d) MODIFICATION.—Beginning on the date of the

16 enactment of the Manufactured Housing Improvement Act

17 of 2000, the amount of any fee collected under this section

18 may only be modified—

19 ‘‘(1) as specifically authorized in advance in an

20 annual appropriations Act; and

21 ‘‘(2) pursuant to rulemaking in accordance with

22 section 553 of title 5, United States Code.

23 ‘‘(e) APPROPRIATION AND DEPOSIT OF FEES.—

24 ‘‘(1) IN GENERAL.—There is established in the

25 Treasury of the United States a fund to be known
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1 as the ‘Manufactured Housing Fees Trust Fund’ for

2 deposit of amounts from any fee collected under this

3 section. Such amounts shall be held in trust for use

4 only as provided in this title.

5 ‘‘(2) APPROPRIATION.—Amounts from any fee

6 collected under this section shall be available for ex7 penditure only to the extent approved in advance in

8 an annual appropriations Act. Any change in the ex9 penditure of such amounts shall be specifically au10 thorized in advance in an annual appropriations Act.

11 ‘‘(3) PAYMENTS TO STATES.—On and after the

12 effective date of the Manufactured Housing Im13 provement Act of 2000, the Secretary shall continue

14 to fund the States having approved State plans in

15 the amounts which are not less than the allocated

16 amounts, based on the fee distribution system in ef17 fect on the day before such effective date.’’.

18 SEC. 610. DISPUTE RESOLUTION.

19 Section 623(c) (42 U.S.C. 5422(c)) is amended—

20 (1) by inserting after paragraph (11) (as added

21 by the preceding provisions of this title) the fol22 lowing:

23 ‘‘(12) with respect to any State plan submitted

24 on or after the expiration of the 5-year period begin25 ning on the date of the enactment of the Manufac-
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1 tured Housing Improvement Act of 2000, provides

2 for a dispute resolution program for the timely reso3 lution of disputes between manufacturers, retailers,

4 and installers of manufactured homes regarding re5 sponsibility, and for the issuance of appropriate or6 ders, for the correction or repair of defects in manu7 factured homes that are reported during the 1-year

8 period beginning on the date of installation; and’’;

9 and

10 (2) by adding at the end the following:

11 ‘‘(g) ENFORCEMENT OF DISPUTE RESOLUTION

12 STANDARDS.—

13 ‘‘(1) ESTABLISHMENT OF DISPUTE RESOLU14 TION PROGRAM.—Not later than the expiration of

15 the 5-year period beginning on the date of the enact16 ment of the Manufactured Housing Improvement

17 Act of 2000, the Secretary shall establish a dispute

18 resolution program that meets the requirements of

19 subsection (c)(12) for dispute resolution in each

20 State described in paragraph (2) of this subsection.

21 The order establishing the dispute resolution pro22 gram shall be issued after notice and opportunity for

23 public comment in accordance with section 553 of

24 title 5, United States Code.
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1 ‘‘(2) IMPLEMENTATION OF DISPUTE RESOLU2 TION PROGRAM.—Beginning on the expiration of the

3 5-year period described in paragraph (1), the Sec4 retary shall implement the dispute resolution pro5 gram established under paragraph (1) in each State

6 that has not established a dispute resolution pro7 gram that meets the requirements of subsection

8 (c)(12).

9 ‘‘(3) CONTRACTING OUT OF IMPLEMENTA10 TION.—In carrying out paragraph (2), the Secretary

11 may contract with an appropriate agent to imple12 ment the dispute resolution program established

13 under paragraph (2), except that such agent shall

14 not be a person or entity other than a government,

15 nor an affiliate or subsidiary of such a person or en16 tity, that has entered into a contract with the Sec17 retary to implement any other regulatory program

18 under this title.’’.

19 SEC. 611. ELIMINATION OF ANNUAL REPORTING REQUIRE20 MENT.

21 The National Manufactured Housing Construction

22 and Safety Standards Act of 1974 (42 U.S.C. 5401 et

23 seq.) is amended—

24 (1) by striking section 626 (42 U.S.C. 5425);

25 and
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1 (2) by redesignating sections 627 and 628 (42

2 U.S.C. 5426, 5401 note) as sections 626 and 627,

3 respectively.

4 SEC. 612. EFFECTIVE DATE.

5 The amendments made by this title shall take effect

6 on the date of the enactment of this Act, except that the

7 amendments shall have no effect on any order or interpre8 tative bulletin that is issued under the National Manufac9 tured Housing Construction and Safety Standards Act of

10 1974 (42 U.S.C. 5401 et seq.) and published as a pro11 posed rule pursuant to section 553 of title 5, United

12 States Code, on or before that date of the enactment.

13 SEC. 613. SAVINGS PROVISIONS.

14 (a) STANDARDS AND REGULATIONS.—The Federal

15 manufactured home construction and safety standards (as

16 such term is defined in section 603 of the National Manu17 factured Housing Construction and Safety Standards Act

18 of 1974) and all regulations pertaining thereto in effect

19 on the day before the date of the enactment of this Act

20 shall apply until the effective date of a standard or regula21 tion modifying or superseding the existing standard or

22 regulation that is promulgated under subsection (a) or (b)

23 of section 604 of the National Manufactured Housing

24 Construction and Safety Standards Act of 1974, as

25 amended by this title.
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1 (b) CONTRACTS.—Any contract awarded pursuant to

2 a Request for Proposal issued before the date of the enact3 ment of this Act shall remain in effect until the earlier

4 of—

5 (1) the expiration of the 2-year period begin6 ning on the date of the enactment of this Act; or

7 (2) the expiration of the contract term.

8 TITLE VII—RURAL HOUSING

9 HOMEOWNERSHIP

10 SEC. 701. GUARANTEES FOR REFINANCING OF RURAL

11 HOUSING LOANS.

12 Section 502(h) of the Housing Act of 1949 (42

13 U.S.C. 1472(h)) is amended by adding at the end the fol14 lowing new paragraph:

15 ‘‘(13) GUARANTEES FOR REFINANCING

16 LOANS.—

17 ‘‘(A) IN GENERAL.—Upon the request of

18 the borrower, the Secretary shall, to the extent

19 provided in appropriation Acts and subject to

20 subparagraph (F), guarantee a loan that is

21 made to refinance an existing loan that is made

22 under this section or guaranteed under this

23 subsection, and that the Secretary determines

24 complies with the requirements of this para25 graph.
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1 ‘‘(B) INTEREST RATE.—To be eligible for

2 a guarantee under this paragraph, the refi3 nancing loan shall have a rate of interest that

4 is fixed over the term of the loan and does not

5 exceed the interest rate of the loan being refi6 nanced.

7 ‘‘(C) SECURITY.—To be eligible for a guar8 antee under this paragraph, the refinancing

9 loan shall be secured by the same single-family

10 residence as was the loan being refinanced,

11 which shall be owned by the borrower and occu12 pied by the borrower as the principal residence

13 of the borrower.

14 ‘‘(D) AMOUNT.—To be eligible for a guar15 antee under this paragraph, the principal obli16 gation under the refinancing loan shall not ex17 ceed an amount equal to the sum of the balance

18 of the loan being refinanced and such closing

19 costs as may be authorized by the Secretary,

20 which shall include a discount not exceeding

21 200 basis points and an origination fee not ex22 ceeding such amount as the Secretary shall pre23 scribe.

24 ‘‘(E) OTHER REQUIREMENTS.—The provi25 sions of the last sentence of paragraph (1) and
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1 paragraphs (2), (5), (6)(A), (7), and (9) shall

2 apply to loans guaranteed under this para3 graph, and no other provisions of paragraphs

4 (1) through (12) shall apply to such loans.

5 ‘‘(F) AUTHORITY TO ESTABLISH LIMITA6 TION.—The Secretary may establish limitations

7 on the number of loans guaranteed under this

8 paragraph, which shall be based on market con9 ditions and other factors as the Secretary con10 siders appropriate.’’.

11 SEC. 702. PROMISSORY NOTE REQUIREMENT UNDER HOUS12 ING REPAIR LOAN PROGRAM.

13 The fourth sentence of section 504(a) of the Housing

14 Act of 1949 (42 U.S.C. 1474(a)) is amended by striking

15 ‘‘$2,500’’ and inserting ‘‘$7,500’’.

16 SEC. 703. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM

17 LABOR HOUSING LOANS.

18 The first sentence of section 514(a) of the Housing

19 Act of 1949 (42 U.S.C. 1484(a)) is amended by striking

20 ‘‘nonprofit limited partnership’’ and inserting ‘‘limited

21 partnership’’.
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1 SEC. 704. PROJECT ACCOUNTING RECORDS AND PRAC2 TICES.

3 Section 515 of the Housing Act of 1949 (42 U.S.C.

4 1485) is amended by striking subsection (z) and inserting

5 the following new subsections:

6 ‘‘(z) ACCOUNTING AND RECORDKEEPING REQUIRE7 MENTS.—

8 ‘‘(1) ACCOUNTING STANDARDS.—The Secretary

9 shall require that borrowers in programs authorized

10 by this section maintain accounting records in ac11 cordance with generally accepted accounting prin12 ciples for all projects that receive funds from loans

13 made or guaranteed by the Secretary under this sec14 tion.

15 ‘‘(2) RECORD RETENTION REQUIREMENTS.—

16 The Secretary shall require that borrowers in pro17 grams authorized by this section retain for a period

18 of not less than 6 years and make available to the

19 Secretary in a manner determined by the Secretary,

20 all records required to be maintained under this sub21 section and other records identified by the Secretary

22 in applicable regulations.

23 ‘‘(aa) DOUBLE DAMAGES FOR UNAUTHORIZED USE

24 OF HOUSING PROJECTS ASSETS AND INCOME.—

25 ‘‘(1) ACTION TO RECOVER ASSETS OR IN26 COME.—
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1 ‘‘(A) IN GENERAL.—The Secretary may re2 quest the Attorney General to bring an action

3 in a United States district court to recover any

4 assets or income used by any person in violation

5 of the provisions of a loan made or guaranteed

6 by the Secretary under this section or in viola7 tion of any applicable statute or regulation.

8 ‘‘(B) IMPROPER DOCUMENTATION.—For

9 purposes of this subsection, a use of assets or

10 income in violation of the applicable loan, loan

11 guarantee, statute, or regulation shall include

12 any use for which the documentation in the

13 books and accounts does not establish that the

14 use was made for a reasonable operating ex15 pense or necessary repair of the project or for

16 which the documentation has not been main17 tained in accordance with the requirements of

18 the Secretary and in reasonable condition for

19 proper audit.

20 ‘‘(C) DEFINITION.—For the purposes of

21 this subsection, the term ‘person’ means—

22 ‘‘(i) any individual or entity that bor23 rows funds in accordance with programs

24 authorized by this section;
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1 ‘‘(ii) any individual or entity holding

2 25 percent or more interest of any entity

3 that borrows funds in accordance with pro4 grams authorized by this section; and

5 ‘‘(iii) any officer, director, or partner

6 of an entity that borrows funds in accord7 ance with programs authorized by this sec8 tion.

9 ‘‘(2) AMOUNT RECOVERABLE.—

10 ‘‘(A) IN GENERAL.—In any judgment fa11 vorable to the United States entered under this

12 subsection, the Attorney General may recover

13 double the value of the assets and income of the

14 project that the court determines to have been

15 used in violation of the provisions of a loan

16 made or guaranteed by the Secretary under this

17 section or any applicable statute or regulation,

18 plus all costs related to the action, including

19 reasonable attorney and auditing fees.

20 ‘‘(B) APPLICATION OF RECOVERED

21 FUNDS.—Notwithstanding any other provision

22 of law, the Secretary may use amounts recov23 ered under this subsection for activities author24 ized under this section and such funds shall re25 main available for such use until expended.
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1 ‘‘(3) TIME LIMITATION.—Notwithstanding any

2 other provision of law, an action under this sub3 section may be commenced at any time during the

4 6-year period beginning on the date that the Sec5 retary discovered or should have discovered the vio6 lation of the provisions of this section or any related

7 statutes or regulations.

8 ‘‘(4) CONTINUED AVAILABILITY OF OTHER

9 REMEDIES.—The remedy provided in this subsection

10 is in addition to and not in substitution of any other

11 remedies available to the Secretary or the United

12 States.’’.

13 SEC. 705. DEFINITION OF RURAL AREA.

14 The second sentence of section 520 of the Housing

15 Act of 1949 (42 U.S.C. 1490) is amended—

16 (1) by striking ‘‘1990 decennial census’’ and in17 serting ‘‘1990 or 2000 decennial census’’; and

18 (2) by striking ‘‘year 2000’’ and inserting ‘‘year

19 2010’’.

20 SEC. 706. OPERATING ASSISTANCE FOR MIGRANT FARM21 WORKERS PROJECTS.

22 The last sentence of section 521(a)(5)(A) of the

23 Housing Act of 1949 (42 U.S.C. 1490a(a)(5)(A)) is

24 amended by striking ‘‘project’’ and inserting ‘‘tenant or

25 unit’’.
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1 SEC. 707. MULTIFAMILY RENTAL HOUSING LOAN GUAR2 ANTEE PROGRAM.

3 Section 538 of the Housing Act of 1949 (42 U.S.C.

4 1490p–2) is amended—

5 (1) in subsection (c), by inserting ‘‘an Indian

6 tribe,’’ after ‘‘thereof,’’;

7 (2) in subsection (f), by striking paragraph (1)

8 and inserting the following new paragraph:

9 ‘‘(1) be made for a period of not less than 25

10 nor greater than 40 years from the date the loan

11 was made and may provide for amortization of the

12 loan over a period of not to exceed 40 years with a

13 final payment of the balance due at the end of the

14 loan term;’’;

15 (3) in subsection (i)(2), by striking ‘‘(A) con16 veyance to the Secretary’’ and all that follows

17 through ‘‘(C) assignment’’ and inserting ‘‘(A) sub18 mission to the Secretary of a claim for payment

19 under the guarantee, and (B) assignment’’;

20 (4) in subsection (s), by adding at the end the

21 following new subsection:

22 ‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’

23 means—

24 ‘‘(A) any Indian tribe, band, nation, or

25 other organized group or community of Indians,

26 including any Alaska Native village or regional
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1 or village corporation, as defined by or estab2 lished pursuant to the Alaska Native Claims

3 Settlement Act (43 U.S.C. 1601 et seq.), that

4 is recognized as eligible for the special pro5 grams and services provided by the United

6 States to Indians because of their status as In7 dians pursuant to the Indian Self-Determina8 tion and Education Assistance Act of 1975 (25

9 U.S.C. 450 et seq.); or

10 ‘‘(B) any entity established by the gov11 erning body of an Indian tribe described in sub12 paragraph (A) for the purpose of financing eco13 nomic development.’’;

14 (5) in subsection (t), by inserting before the pe15 riod at the end the following: ‘‘to provide guarantees

16 under this section for eligible loans having an aggre17 gate principal amount of $500,000,000’’;

18 (6) by striking subsection (l);

19 (7) by redesignating subsections (m) through

20 (u) as subsections (l) through (t), respectively; and

21 (8) by adding at the end the following new sub22 sections:

23 ‘‘(u) FEE AUTHORITY.—Any amounts collected by

24 the Secretary pursuant to the fees charged to lenders for

25 loan guarantees issued under this section shall be used
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1 to offset costs (as defined by section 502 of the Congres2 sional Budget Act of 1974 (2 U.S.C. 661a)) of loan guar3 antees made under this section.

4 ‘‘(v) DEFAULTS OF LOANS SECURED BY RESERVA5 TION LANDS.—In the event of a default involving a loan

6 to an Indian tribe or tribal corporation made under this

7 section which is secured by an interest in land within such

8 tribe’s reservation (as determined by the Secretary of the

9 Interior), including a community in Alaska incorporated

10 by the Secretary of the Interior pursuant to the Indian

11 Reorganization Act (25 U.S.C. 461 et seq.), the lender

12 shall only pursue liquidation after offering to transfer the

13 account to an eligible tribal member, the tribe, or the In14 dian housing authority serving the tribe. If the lender sub15 sequently proceeds to liquidate the account, the lender

16 shall not sell, transfer, or otherwise dispose of or alienate

17 the property except to one of the entities described in the

18 preceding sentence.’’.

19 SEC. 708. ENFORCEMENT PROVISIONS.

20 (a) IN GENERAL.—Title V of the Housing Act of

21 1949 (42 U.S.C. 1471 et seq.) is amended by adding after

22 section 542 the following:

23 ‘‘SEC. 543. ENFORCEMENT PROVISIONS.

24 ‘‘(a) EQUITY SKIMMING.—
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1 ‘‘(1) CRIMINAL PENALTY.—Whoever, as an

2 owner, agent, employee, or manager, or is otherwise

3 in custody, control, or possession of property that is

4 security for a loan made or guaranteed under this

5 title, willfully uses, or authorizes the use, of any part

6 of the rents, assets, proceeds, income, or other funds

7 derived from such property, for any purpose other

8 than to meet actual, reasonable, and necessary ex9 penses of the property, or for any other purpose not

10 authorized by this title or the regulations adopted

11 pursuant to this title, shall be fined under title 18,

12 United States Code, or imprisoned not more than 5

13 years, or both.

14 ‘‘(2) CIVIL SANCTIONS.—An entity or individual

15 who as an owner, operator, employee, or manager, or

16 who acts as an agent for a property that is security

17 for a loan made or guaranteed under this title where

18 any part of the rents, assets, proceeds, income, or

19 other funds derived from such property are used for

20 any purpose other than to meet actual, reasonable,

21 and necessary expenses of the property, or for any

22 other purpose not authorized by this title or the reg23 ulations adopted pursuant to this title, shall be sub24 ject to a fine of not more than $25,000 per viola25 tion. The sanctions provided in this paragraph may
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1 be imposed in addition to any other civil sanctions

2 or civil monetary penalties authorized by law.

3 ‘‘(b) CIVIL MONETARY PENALTIES.—

4 ‘‘(1) IN GENERAL.—The Secretary may, after

5 notice and opportunity for a hearing, impose a civil

6 monetary penalty in accordance with this subsection

7 against any individual or entity, including its own8 ers, officers, directors, general partners, limited

9 partners, or employees, who knowingly and materi10 ally violate, or participate in the violation of, the

11 provisions of this title, the regulations issued by the

12 Secretary pursuant to this title, or agreements made

13 in accordance with this title, by—

14 ‘‘(A) submitting information to the Sec15 retary that is false;

16 ‘‘(B) providing the Secretary with false

17 certifications;

18 ‘‘(C) failing to submit information re19 quested by the Secretary in a timely manner;

20 ‘‘(D) failing to maintain the property sub21 ject to loans made or guaranteed under this

22 title in good repair and condition, as deter23 mined by the Secretary;

24 ‘‘(E) failing to provide management for a

25 project which received a loan made or guaran-
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1 teed under this title that is acceptable to the

2 Secretary; or

3 ‘‘(F) failing to comply with the provisions

4 of applicable civil rights statutes and regula5 tions.

6 ‘‘(2) CONDITIONS FOR RENEWAL OR EXTEN7 SION.—The Secretary may require that expiring loan

8 or assistance agreements entered into under this

9 title shall not be renewed or extended unless the

10 owner executes an agreement to comply with addi11 tional conditions prescribed by the Secretary, or exe12 cutes a new loan or assistance agreement in the

13 form prescribed by the Secretary.

14 ‘‘(3) AMOUNT.—

15 ‘‘(A) IN GENERAL.—The amount of a civil

16 monetary penalty imposed under this subsection

17 shall not exceed the greater of—

18 ‘‘(i) twice the damages the Depart19 ment of Agriculture, the guaranteed lend20 er, or the project that is secured for a loan

21 under this section suffered or would have

22 suffered as a result of the violation; or

23 ‘‘(ii) $50,000 per violation.

24 ‘‘(B) DETERMINATION.—In determining

25 the amount of a civil monetary penalty under
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1 this subsection, the Secretary shall take into

2 consideration—

3 ‘‘(i) the gravity of the offense;

4 ‘‘(ii) any history of prior offenses by

5 the violator (including offenses occurring

6 prior to the enactment of this section);

7 ‘‘(iii) the ability of the violator to pay

8 the penalty;

9 ‘‘(iv) any injury to tenants;

10 ‘‘(v) any injury to the public;

11 ‘‘(vi) any benefits received by the vio12 lator as a result of the violation;

13 ‘‘(vii) deterrence of future violations;

14 and

15 ‘‘(viii) such other factors as the Sec16 retary may establish by regulation.

17 ‘‘(4) PAYMENT OF PENALTIES.—No payment of

18 a penalty assessed under this section may be made

19 from funds provided under this title or from funds

20 of a project which serve as security for a loan made

21 or guaranteed under this title.

22 ‘‘(5) REMEDIES FOR NONCOMPLIANCE.—

23 ‘‘(A) JUDICIAL INTERVENTION.—If a per24 son or entity fails to comply with a final deter25 mination by the Secretary imposing a civil mon-
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1 etary penalty under this subsection, the Sec2 retary may request the Attorney General of the

3 United States to bring an action in an appro4 priate United States district court to obtain a

5 monetary judgment against such individual or

6 entity and such other relief as may be available.

7 The monetary judgment may, in the court’s dis8 cretion, include the attorney’s fees and other

9 expenses incurred by the United States in con10 nection with the action.

11 ‘‘(B) REVIEWABILITY OF DETERMINA12 TION.—In an action under this paragraph, the

13 validity and appropriateness of a determination

14 by the Secretary imposing the penalty shall not

15 be subject to review.’’.

16 (b) CONFORMING AMENDMENT.—Section 514 of the

17 Housing Act of 1949 (42 U.S.C. 1484) is amended by

18 striking subsection (j).

19 SEC. 709. AMENDMENTS TO TITLE 18 OF UNITED STATES

20 CODE.

21 (a) MONEY LAUNDERING.—Section 1956(c)(7)(D) of

22 title 18, United States Code, is amended by inserting ‘‘any

23 violation of section 543(a)(1) of the Housing Act of 1949

24 (relating to equity skimming),’’ after ‘‘coupons having a

25 value of not less than $5,000,’’.
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1 (b) OBSTRUCTION OF FEDERAL AUDITS.—Section

2 1516(a) of title 18, United States Code, is amended by

3 inserting ‘‘or relating to any property that is security for

4 a loan that is made or guaranteed under title V of the

5 Housing Act of 1949,’’ before ‘‘shall be fined under this

6 title’’.

7 TITLE VIII—HOUSING FOR EL8 DERLY AND DISABLED FAMI9 LIES

10 SEC. 801. SHORT TITLE.

11 This title may be cited as the ‘‘Affordable Housing

12 for Seniors and Families Act’’.

13 SEC. 802. REGULATIONS.

14 The Secretary of Housing and Urban Development

15 (referred to in this title as the ‘‘Secretary’’) shall issue

16 any regulations to carry out this title and the amendments

17 made by this title that the Secretary determines may or

18 will affect tenants of federally assisted housing only after

19 notice and opportunity for public comment in accordance

20 with the procedure under section 553 of title 5, United

21 States Code, applicable to substantive rules (notwith22 standing subsections (a)(2), (b)(B), and (d)(3) of such

23 section). Notice of such proposed rulemaking shall be pro24 vided by publication in the Federal Register. In issuing

25 such regulations, the Secretary shall take such actions as
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1 may be necessary to ensure that such tenants are notified

2 of, and provided an opportunity to participate in, the rule3 making, as required by such section 553.

4 SEC. 803. EFFECTIVE DATE.

5 (a) IN GENERAL.—The provisions of this title and

6 the amendments made by this title are effective as of the

7 date of the enactment of this Act, unless such provisions

8 or amendments specifically provide for effectiveness or ap9 plicability upon another date certain.

10 (b) EFFECT OF REGULATORY AUTHORITY.—Any au11 thority in this title or the amendments made by this title

12 to issue regulations, and any specific requirement to issue

13 regulations by a date certain, may not be construed to af14 fect the effectiveness or applicability of the provisions of

15 this title or the amendments made by this title under such

16 provisions and amendments and subsection (a) of this sec17 tion.

18 Subtitle A—Refinancing for Section

19 202 Supportive Housing for the

20 Elderly

21 SEC. 811. PREPAYMENT AND REFINANCING.

22 (a) APPROVAL OF PREPAYMENT OF DEBT.—Upon

23 request of the project sponsor of a project assisted with

24 a loan under section 202 of the Housing Act of 1959 (as

25 in effect before the enactment of the Cranston-Gonzalez
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1 National Affordable Housing Act), the Secretary shall ap2 prove the prepayment of any indebtedness to the Secretary

3 relating to any remaining principal and interest under the

4 loan as part of a prepayment plan under which—

5 (1) the project sponsor agrees to operate the

6 project until the maturity date of the original loan

7 under terms at least as advantageous to existing and

8 future tenants as the terms required by the original

9 loan agreement or any rental assistance payments

10 contract under section 8 of the United States Hous11 ing Act of 1937 (or any other rental housing assist12 ance programs of the Department of Housing and

13 Urban Development, including the rent supplement

14 program under section 101 of the Housing and

15 Urban Development Act of 1965 (12 U.S.C. 1701s))

16 relating to the project; and

17 (2) the prepayment may involve refinancing of

18 the loan if such refinancing results in a lower inter19 est rate on the principal of the loan for the project

20 and in reductions in debt service related to such

21 loan.

22 (b) SOURCES OF REFINANCING.—In the case of pre23 payment under this section involving refinancing, the

24 project sponsor may refinance the project through any

25 third party source, including financing by State and local
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1 housing finance agencies, use of tax-exempt bonds, multi2 family mortgage insurance under the National Housing

3 Act, reinsurance, or other credit enhancements, including

4 risk sharing as provided under section 542 of the Housing

5 and Community Development Act of 1992 (12 U.S.C.

6 1707 note). For purposes of underwriting a loan insured

7 under the National Housing Act, the Secretary may as8 sume that any section 8 rental assistance contract relating

9 to a project will be renewed for the term of such loan.

10 (c) USE OF UNEXPENDED AMOUNTS.—Upon execu11 tion of the refinancing for a project pursuant to this sec12 tion, the Secretary shall make available at least 50 percent

13 of the annual savings resulting from reduced section 8 or

14 other rental housing assistance contracts in a manner that

15 is advantageous to the tenants, including—

16 (1) not more than 15 percent of the cost of in17 creasing the availability or provision of supportive

18 services, which may include the financing of service

19 coordinators and congregate services;

20 (2) rehabilitation, modernization, or retrofitting

21 of structures, common areas, or individual dwelling

22 units;

23 (3) construction of an addition or other facility

24 in the project, including assisted living facilities (or,

25 upon the approval of the Secretary, facilities located
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1 in the community where the project sponsor refi2 nances a project under this section, or pools shared

3 resources from more than 1 such project); or

4 (4) rent reduction of unassisted tenants resid5 ing in the project according to a pro rata allocation

6 of shared savings resulting from the refinancing.

7 (d) USE OF CERTAIN PROJECT FUNDS.—The Sec8 retary shall allow a project sponsor that is prepaying and

9 refinancing a project under this section—

10 (1) to use any residual receipts held for that

11 project in excess of $500 per individual dwelling unit

12 for not more than 15 percent of the cost of activities

13 designed to increase the availability or provision of

14 supportive services; and

15 (2) to use any reserves for replacement in ex16 cess of $1,000 per individual dwelling unit for activi17 ties described in paragraphs (2) and (3) of sub18 section (c).

19 (e) BUDGET ACT COMPLIANCE.—This section shall

20 be effective only to extent or in such amounts that are

21 provided in advance in appropriation Acts.
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1 Subtitle B—Authorization of Ap2 propriations for Supportive

3 Housing for the Elderly and

4 Persons With Disabilities

5 SEC. 821. SUPPORTIVE HOUSING FOR ELDERLY PERSONS.

6 Section 202 of the Housing Act of 1959 (12 U.S.C.

7 1701q) is amended by adding at the end the following:

8 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There

9 are authorized to be appropriated for providing assistance

10 under this section such sums as may be necessary for each

11 of fiscal years 2001, 2002, and 2003.’’.

12 SEC. 822. SUPPORTIVE HOUSING FOR PERSONS WITH DIS13 ABILITIES.

14 Section 811 of the Cranston-Gonzalez National Af15 fordable Housing Act (42 U.S.C. 8013) is amended by

16 striking subsection (m) and inserting the following:

17 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There

18 are authorized to be appropriated for providing assistance

19 under this section such sums as may be necessary for each

20 of fiscal years 2001, 2002, and 2003.’’.
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1 SEC. 823. SERVICE COORDINATORS AND CONGREGATE

2 SERVICES FOR ELDERLY AND DISABLED

3 HOUSING.

4 There are authorized to be appropriated to the Sec5 retary such sums as may be necessary for each of fiscal

6 years 2001, 2002, and 2003, for the following purposes:

7 (1) GRANTS FOR SERVICE COORDINATORS FOR

8 CERTAIN FEDERALLY ASSISTED MULTIFAMILY HOUS9 ING.—For grants under section 676 of the Housing

10 and Community Development Act of 1992 (42

11 U.S.C. 13632) for providing service coordinators.

12 (2) CONGREGATE SERVICES FOR FEDERALLY

13 ASSISTED HOUSING.—For contracts under section

14 802 of the Cranston-Gonzalez National Affordable

15 Housing Act (42 U.S.C. 8011) to provide congregate

16 services programs for eligible residents of eligible

17 housing projects under subparagraphs (B) through

18 (D) of subsection (k)(6) of such section.
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1 Subtitle C—Expanding Housing

2 Opportunities for the Elderly

3 and Persons With Disabilities

4 PART 1—HOUSING FOR THE ELDERLY

5 SEC. 831. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNER6 SHIPS.

7 Section 202(k)(4) of the Housing Act of 1959 (12

8 U.S.C. 1701q(k)(4)) is amended by inserting after sub9 paragraph (C) the following:

10 ‘‘Such term includes a for-profit limited partnership

11 the sole general partner of which is an organization

12 meeting the requirements under subparagraphs (A),

13 (B), and (C), or a corporation wholly owned and

14 controlled by an organization meeting the require15 ments under subparagraphs (A), (B), and (C).’’.

16 SEC. 832. MIXED FUNDING SOURCES.

17 Section 202(h)(6) of the Housing Act of 1959 (12

18 U.S.C. 1701q(h)(6)) is amended—

19 (1) by striking ‘‘non-Federal sources’’ and in20 serting ‘‘sources other than this section’’; and

21 (2) by adding at the end the following new sen22 tence: ‘‘Notwithstanding any other provision of law,

23 assistance amounts provided under this section may

24 be treated as amounts not derived from a Federal

25 grant.’’.
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1 SEC. 833. AUTHORITY TO ACQUIRE STRUCTURES.

2 Section 202 of the Housing Act of 1959 (12 U.S.C.

3 1701q) is amended—

4 (1) in subsection (b), by striking ‘‘from the

5 Resolution Trust Corporation’’; and

6 (2) in subsection (h)(2)—

7 (A) in the paragraph heading, by striking

8 ‘‘RTC PROPERTIES’’ and inserting ‘‘ACQUISI9 TION’’; and

10 (B) by striking ‘‘from the Resolution’’ and

11 all that follows through ‘‘Insurance Act’’.

12 SEC. 834. USE OF PROJECT RESERVES.

13 Section 202(j) of the Housing Act of 1959 (12 U.S.C.

14 1701q(j)) is amended by adding at the end the following:

15 ‘‘(8) USE OF PROJECT RESERVES.—Amounts

16 for project reserves for a project assisted under this

17 section may be used for costs, subject to reasonable

18 limitations as the Secretary determines appropriate,

19 for reducing the number of dwelling units in the

20 project. Such use shall be subject to the approval of

21 the Secretary to ensure that the use is designed to

22 retrofit units that are currently obsolete or unmar23 ketable.’’.

24 SEC. 835. COMMERCIAL ACTIVITIES.

25 Section 202(h)(1) of the Housing Act of 1959 (12

26 U.S.C. 1701q(h)(1)) is amended by adding at the end the
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1 following: ‘‘Neither this section nor any other provision of

2 law may be construed as prohibiting or preventing the lo3 cation and operation, in a project assisted under this sec4 tion, of commercial facilities for the benefit of residents

5 of the project and the community in which the project is

6 located, except that assistance made available under this

7 section may not be used to subsidize any such commercial

8 facility.’’.

9 PART 2—HOUSING FOR PERSONS WITH

10 DISABILITIES

11 SEC. 841. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNER12 SHIPS.

13 Section 811(k)(6) of the Housing Act of 1959 (42

14 U.S.C. 8013(k)(6)) is amended by inserting after subpara15 graph (D) the following:

16 ‘‘Such term includes a for-profit limited partnership

17 the sole general partner of which is an organization

18 meeting the requirements under subparagraphs (A),

19 (B), (C), and (D) or a corporation wholly owned and

20 controlled by an organization meeting the require21 ments under subparagraphs (A), (B), (C), and

22 (D).’’.
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1 SEC. 842. MIXED FUNDING SOURCES.

2 Section 811(h)(5) of the Cranston-Gonzalez National

3 Affordable Housing Act (42 U.S.C. 8013(h)(5)) is

4 amended—

5 (1) by striking ‘‘non-Federal sources’’ and in6 serting ‘‘sources other than this section’’; and

7 (2) by adding at the end the following new sen8 tence: ‘‘Notwithstanding any other provision of law,

9 assistance amounts provided under this section may

10 be treated as amounts not derived from a Federal

11 grant.’’.

12 SEC. 843. TENANT-BASED ASSISTANCE.

13 Section 811 of the Cranston-Gonzalez National Af14 fordable Housing Act (42 U.S.C. 8013) is amended—

15 (1) in subsection (d), by striking paragraph (4)

16 and inserting the following:

17 ‘‘(4) TENANT-BASED RENTAL ASSISTANCE.—

18 ‘‘(A) ADMINISTERING ENTITIES.—Tenant19 based rental assistance provided under sub20 section (b)(1) may be provided only through a

21 public housing agency that has submitted and

22 had approved an plan under section 7(d) of the

23 United States Housing Act of 1937 (42 U.S.C.

24 1437e(d)) that provides for such assistance, or

25 through a private nonprofit organization. A

26 public housing agency shall be eligible to apply
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1 under this section only for the purposes of pro2 viding such tenant-based rental assistance.

3 ‘‘(B) PROGRAM RULES.—Tenant-based

4 rental assistance under subsection (b)(1) shall

5 be made available to eligible persons with dis6 abilities and administered under the same rules

7 that govern tenant-based rental assistance made

8 available under section 8 of the United States

9 Housing Act of 1937, except that the Secretary

10 may waive or modify such rules, but only to the

11 extent necessary to provide for administering

12 such assistance under subsection (b)(1) through

13 private nonprofit organizations rather than

14 through public housing agencies.

15 ‘‘(C) ALLOCATION OF ASSISTANCE.—In de16 termining the amount of assistance provided

17 under subsection (b)(1) for a private nonprofit

18 organization or public housing agency, the Sec19 retary shall consider the needs and capabilities

20 of the organization or agency, in the case of a

21 public housing agency, as described in the plan

22 for the agency under section 7 of the United

23 States Housing Act of 1937.’’; and

24 (2) in subsection (l)(1)—
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1 (A) by striking ‘‘subsection (b)’’ and in2 serting ‘‘subsection (b)(2)’’; and

3 (B) by striking the last comma and all

4 that follows through ‘‘subsection (n)’’.

5 SEC. 844. USE OF PROJECT RESERVES.

6 Section 811(j) of the Cranston-Gonzalez National Af7 fordable Housing Act (42 U.S.C. 8013(j)) is amended by

8 adding at the end the following:

9 ‘‘(7) USE OF PROJECT RESERVES.—Amounts

10 for project reserves for a project assisted under this

11 section may be used for costs, subject to reasonable

12 limitations as the Secretary determines appropriate,

13 for reducing the number of dwelling units in the

14 project. Such use shall be subject to the approval of

15 the Secretary to ensure that the use is designed to

16 retrofit units that are currently obsolete or unmar17 ketable.’’.

18 SEC. 845. COMMERCIAL ACTIVITIES.

19 Section 811(h)(1) of the Cranston-Gonzalez National

20 Affordable Housing Act (42 U.S.C. 8013(h)(1)) is amend21 ed by adding at the end the following: ‘‘Neither this sec22 tion nor any other provision of law may be construed as

23 prohibiting or preventing the location and operation, in a

24 project assisted under this section, of commercial facilities

25 for the benefit of residents of the project and the commu-
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1 nity in which the project is located, except that assistance

2 made available under this section may not be used to sub3 sidize any such commercial facility.’’.

4 PART 3—OTHER PROVISIONS

5 SEC. 851. SERVICE COORDINATORS.

6 (a) INCREASED FLEXIBILITY FOR USE OF SERVICE

7 COORDINATORS IN CERTAIN FEDERALLY ASSISTED

8 HOUSING.—Section 676 of the Housing and Community

9 Development Act of 1992 (42 U.S.C. 13632) is

10 amended—

11 (1) in the section heading, by striking ‘‘MULTI12 FAMILY HOUSING ASSISTED UNDER NATIONAL

13 HOUSING ACT’’ and inserting ‘‘CERTAIN FEDER14 ALLY ASSISTED HOUSING’’;

15 (2) in subsection (a)—

16 (A) in the first sentence, by striking ‘‘(E)

17 and (F)’’ and inserting ‘‘(B), (C), (D), (E),

18 (F), and (G)’’; and

19 (B) in the last sentence—

20 (i) by striking ‘‘section 661’’ and in21 serting ‘‘section 671’’; and

22 (ii) by adding at the end the fol23 lowing: ‘‘A service coordinator funded with

24 a grant under this section for a project

25 may provide services to low-income elderly
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1 or disabled families living in the vicinity of

2 such project.’’;

3 (3) in subsection (d)—

4 (A) by striking ‘‘(E) or (F)’’ and inserting

5 ‘‘(B), (C), (D), (E), (F), or (G)’’; and

6 (B) by striking ‘‘section 661’’ and insert7 ing ‘‘section 671’’; and

8 (4) by striking subsection (c) and redesignating

9 subsection (d) (as amended by paragraph (3) of this

10 subsection) as subsection (c).

11 (b) REQUIREMENT TO PROVIDE SERVICE COORDINA12 TORS.—Section 671 of the Housing and Community De13 velopment Act of 1992 (42 U.S.C. 13631) is amended—

14 (1) in the first sentence of subsection (a), by

15 striking ‘‘to carry out this subtitle pursuant to the

16 amendments made by this subtitle’’ and inserting

17 the following: ‘‘for providing service coordinators

18 under this section’’;

19 (2) in subsection (d), by inserting ‘‘)’’ after

20 ‘‘section 683(2)’’; and

21 (3) by adding at the end following:

22 ‘‘(e) SERVICES FOR LOW-INCOME ELDERLY OR DIS23 ABLED FAMILIES RESIDING IN VICINITY OF CERTAIN

24 PROJECTS.—To the extent only that this section applies

25 to service coordinators for covered federally assisted hous-
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1 ing described in subparagraphs (B), (C), (D), (E), (F),

2 and (G) of section 683(2), any reference in this section

3 to elderly or disabled residents of a project shall be con4 strued to include low-income elderly or disabled families

5 living in the vicinity of such project.’’.

6 (c) PROTECTION AGAINST TELEMARKETING

7 FRAUD.—

8 (1) SUPPORTIVE HOUSING FOR THE ELDER9 LY.—The first sentence of section 202(g)(1) of the

10 Housing Act of 1959 (12 U.S.C. 1701q(g)(1)) is

11 amended by striking ‘‘and (F)’’ and inserting the

12 following: ‘‘(F) providing education and outreach re13 garding telemarketing fraud, in accordance with the

14 standards issued under section 671(f) of the Hous15 ing and Community Development Act of 1992 (42

16 U.S.C. 13631(f)); and (G)’’.

17 (2) OTHER FEDERALLY ASSISTED HOUSING.—

18 Section 671 of the Housing and Community Devel19 opment Act of 1992 (42 U.S.C. 13631), as amended

20 by subsection (b) of this section, is further

21 amended—

22 (A) in the first sentence of subsection (c),

23 by inserting after ‘‘response,’’ the following:

24 ‘‘education and outreach regarding tele-
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1 marketing fraud in accordance with the stand2 ards issued under subsection (f),’’; and

3 (B) by adding at the end the following:

4 ‘‘(f) PROTECTION AGAINST TELEMARKETING

5 FRAUD.—

6 ‘‘(1) IN GENERAL.—The Secretary, in coordina7 tion with the Secretary of Health and Human Serv8 ices, shall establish standards for service coordina9 tors in federally assisted housing who are providing

10 education and outreach to elderly persons residing in

11 such housing regarding telemarketing fraud. The

12 standards shall be designed to ensure that such edu13 cation and outreach informs such elderly persons of

14 the dangers of telemarketing fraud and facilitates

15 the investigation and prosecution of telemarketers

16 engaging in fraud against such residents.

17 ‘‘(2) CONTENTS.—The standards established

18 under this subsection shall require that any such

19 education and outreach be provided in a manner

20 that—

21 ‘‘(A) informs such residents of—

22 ‘‘(i) the prevalence of telemarketing

23 fraud targeted against elderly persons;

24 ‘‘(ii) how telemarketing fraud works;
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1 ‘‘(iii) how to identify telemarketing

2 fraud;

3 ‘‘(iv) how to protect themselves

4 against telemarketing fraud, including an

5 explanation of the dangers of providing

6 bank account, credit card, or other finan7 cial or personal information over the tele8 phone to unsolicited callers;

9 ‘‘(v) how to report suspected attempts

10 at telemarketing fraud; and

11 ‘‘(vi) their consumer protection rights

12 under Federal law;

13 ‘‘(B) provides such other information as

14 the Secretary considers necessary to protect

15 such residents against fraudulent telemarketing;

16 and

17 ‘‘(C) disseminates the information provided

18 by appropriate means, and in determining such

19 appropriate means, the Secretary shall consider

20 on-site presentations at federally assisted hous21 ing, public service announcements, a printed

22 manual or pamphlet, an Internet website, and

23 telephone outreach to residents whose names

24 appear on ‘mooch lists’ confiscated from fraud25 ulent telemarketers.’’.
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1 Subtitle D—Preservation of

2 Affordable Housing Stock

3 SEC. 861. SECTION 236 ASSISTANCE.

4 (a) EXTENSION OF AUTHORITY TO RETAIN EXCESS

5 CHARGES.—Section 236(g) of the National Housing Act

6 (12 U.S.C. 1715z–1(g)), as amended by the Departments

7 of Veterans Affairs and Housing and Urban Development,

8 and Independent Agencies Appropriations Act, 2001, is

9 amended—

10 (1) in paragraph (2), by striking ‘‘Subject to

11 paragraph (3) and notwithstanding’’ and inserting

12 ‘‘Notwithstanding’’; and

13 (2) by striking paragraph (3) and redesignating

14 paragraph (4) as paragraph (3).

15 (b) TREATMENT OF EXCESS CHARGES PREVIOUSLY

16 COLLECTED.—Any excess charges that a project owner

17 may retain pursuant to the amendments made by sub18 sections (b) and (c) of section 532 of the Departments

19 of Veterans Affairs and Housing and Urban Development,

20 and Independent Agencies Appropriations Act, 2000

21 (Public Law 106–74; 113 Stat. 1116) that have been col22 lected by such owner since the date of the enactment of

23 such Appropriations Act and that such owner has not re24 mitted to the Secretary of Housing and Urban Develop25 ment may be retained by such owner unless such Secretary
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1 otherwise provides. To the extent that a project owner has

2 remitted such excess charges to the Secretary since such

3 date of the enactment, the Secretary may return to the

4 relevant project owner any such excess charges remitted.

5 Notwithstanding any other provision of law, amounts in

6 the Rental Housing Assistance Fund, or heretofore or sub7 sequently transferred from the Rental Housing Assistance

8 Fund to the Flexible Subsidy Fund, shall be available to

9 make such return of excess charges previously remitted

10 to the Secretary, including the return of excess charges

11 referred to in section 532(e) of such Appropriations Act.

12 TITLE IX—OTHER RELATED

13 HOUSING PROVISIONS

14 SEC. 901. EXTENSION OF LOAN TERM FOR MANUFACTURED

15 HOME LOTS.

16 Section 2(b)(3)(E) of the National Housing Act (12

17 U.S.C. 1703(b)(3)(E)) is amended by striking ‘‘fifteen’’

18 and inserting ‘‘twenty’’.

19 SEC. 902. USE OF SECTION 8 VOUCHERS FOR OPT-OUTS.

20 (a) IN GENERAL.—Section 8(t)(2) of the United

21 States Housing Act of 1937 (42 U.S.C. 1437f(t)(2)), as

22 amended by the Departments of Veterans Affairs and

23 Housing and Urban Development, and Independent Agen24 cies Appropriations Act, 2001, is amended by striking

25 ‘‘fiscal year 1996’’ and inserting ‘‘fiscal year 1994’’.
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1 (b) EFFECTIVE DATE.—The amendment under sub2 section (a) shall be made and shall apply—

3 (1) upon the enactment of this Act, if the De4 partments of Veterans Affairs and Housing and

5 Urban Development, and Independent Agencies Ap6 propriations Act, 2001, is enacted before the enact7 ment of this Act; and

8 (2) immediately after the enactment of such ap9 propriations Act, if such appropriations Act is en10 acted after the enactment of this Act.

11 SEC. 903. MAXIMUM PAYMENT STANDARD FOR ENHANCED

12 VOUCHERS.

13 (a) IN GENERAL.—Section 8(t)(1)(B) of the United

14 States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(B)),

15 as amended by the Departments of Veterans Affairs and

16 Housing and Urban Development, and Independent Agen17 cies Appropriations Act, 2001, is amended by inserting be18 fore the semicolon at the end the following: ‘‘, except that

19 a limit shall not be considered reasonable for purposes of

20 this subparagraph if it adversely affects such assisted fam21 ilies’’.

22 (b) EFFECTIVE DATE.—The amendment under sub23 section (a) shall be made and shall apply—

24 (1) upon the enactment of this Act, if the De25 partments of Veterans Affairs and Housing and
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1 Urban Development, and Independent Agencies Ap2 propriations Act, 2001, is enacted before the enact3 ment of this Act; and

4 (2) immediately after the enactment of such ap5 propriations Act, if such appropriations Act is en6 acted after the enactment of this Act.

7 SEC. 904. USE OF SECTION 8 ASSISTANCE BY ‘‘GRAND-FAMI8 LIES’’ TO RENT DWELLING UNITS IN AS9 SISTED PROJECTS.

10 Section 215(a) of the Cranston-Gonzalez National

11 Affordable Housing Act (42 U.S.C. 12745(a)) is amended

12 by adding at the end the following new paragraph:

13 ‘‘(6) WAIVER OF QUALIFYING RENT.—

14 ‘‘(A) IN GENERAL.—For the purpose of

15 providing affordable housing appropriate for

16 families described in subparagraph (B), the

17 Secretary may, upon the application of the

18 project owner, waive the applicability of sub19 paragraph (A) of paragraph (1) with respect to

20 a dwelling unit if—

21 ‘‘(i) the unit is occupied by such a

22 family, on whose behalf tenant-based as23 sistance is provided under section 8 of the

24 United States Housing Act of 1937 (42

25 U.S.C. 1437f);
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1 ‘‘(ii) the rent for the unit is not great2 er than the existing fair market rent for

3 comparable units in the area, as estab4 lished by the Secretary under section 8 of

5 the United States Housing Act of 1937;

6 and

7 ‘‘(iii) the Secretary determines that

8 the waiver, together with waivers under

9 this paragraph for other dwelling units in

10 the project, will result in the use of

11 amounts described in clause (iii) in an ef12 fective manner that will improve the provi13 sion of affordable housing for such fami14 lies.

15 ‘‘(B) ELIGIBLE FAMILIES.—A family de16 scribed in this subparagraph is a family that

17 consists of at least one elderly person (who is

18 the head of household) and one or more of such

19 person’s grand children, great grandchildren,

20 great nieces, great nephews, or great great

21 grandchildren (as defined by the Secretary), but

22 does not include any parent of such grand23 children, great grandchildren, great nieces,

24 great nephews, or great great grandchildren.

25 Such term includes any such grandchildren,
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1 great grandchildren, great nieces, great neph2 ews, or great great grandchildren who have

3 been legally adopted by such elderly person.’’.

4 TITLE X—FEDERAL RESERVE

5 BOARD PROVISIONS

6 SEC. 1001. FEDERAL RESERVE BOARD BUILDINGS.

7 The 3rd undesignated paragraph of section 10 of the

8 Federal Reserve Act (12 U.S.C. 243) is amended—

9 (1) by inserting after the 1st sentence the fol10 lowing new sentence: ‘‘After September 1, 2000, the

11 Board may also use such assessments to acquire, in

12 its own name, a site or building (in addition to the

13 facilities existing on such date) to provide for the

14 performance of the functions of the Board.’’; and

15 (2) in the sentences following the sentence

16 added by the amendment made by paragraph (1) of

17 this section—

18 (A) by striking ‘‘the site’’ and inserting

19 ‘‘any site’’; and

20 (B) by inserting ‘‘or buildings’’ after

21 ‘‘building’’ each place such term appears.

22 SEC. 1002. POSITIONS OF BOARD OF GOVERNORS OF THE

23 FEDERAL RESERVE SYSTEM ON THE EXECU24 TIVE SCHEDULE.

25 (a) IN GENERAL.—
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1 (1) POSITIONS AT LEVEL I OF THE EXECUTIVE

2 SCHEDULE.—Section 5312 of title 5, United States

3 Code, is amended by adding at the end the fol4 lowing:

5 ‘‘Chairman, Board of Governors of the Federal

6 Reserve System.’’.

7 (2) POSITIONS AT LEVEL II OF THE EXECUTIVE

8 SCHEDULE.—Section 5313 of title 5, United States

9 Code, is amended—

10 (A) by striking ‘‘Chairman, Board of Gov11 ernors of the Federal Reserve System.’’; and

12 (B) by adding at the end the following:

13 ‘‘Members, Board of Governors of the Federal

14 Reserve System.’’.

15 (3) POSITIONS AT LEVEL III OF THE EXECU16 TIVE SCHEDULE.—Section 5314 of title 5, United

17 States Code, is amended by striking ‘‘Members,

18 Board of Governors of the Federal Reserve Sys19 tem.’’.

20 (b) EFFECTIVE DATE.—This section and the amend21 ments made by this section shall take effect on the first

22 day of the first pay period for the Chairman and Members

23 of the Board of Governors of the Federal Reserve System

24 beginning on or after the date of the enactment of this

25 Act.
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1 SEC. 1003. AMENDMENTS TO THE FEDERAL RESERVE ACT.

2 (a) REPEAL.—Section 2A of the Federal Reserve Act

3 (12 U.S.C. 225a) is amended by striking all after the first

4 sentence.

5 (b) APPEARANCES BEFORE AND REPORTS TO THE

6 CONGRESS.—

7 (1) IN GENERAL.—The Federal Reserve Act

8 (12 U.S.C. 221 et seq.) is amended by inserting

9 after section 2A the following new section:

10 ‘‘SEC. 2B. APPEARANCES BEFORE AND REPORTS TO THE

11 CONGRESS.

12 ‘‘(a) APPEARANCES BEFORE THE CONGRESS.—

13 (1) IN GENERAL.—The Chairman of the Board

14 shall appear before the Congress at semi-annual

15 hearings, as specified in paragraph (2), regarding—

16 ‘‘(A) the efforts, activities, objectives and

17 plans of the Board and the Federal Open Mar18 ket Committee with respect to the conduct of

19 monetary policy; and

20 ‘‘(B) economic developments and prospects

21 for the future described in the report required

22 in subsection (b).

23 ‘‘(2) SCHEDULE.—The Chairman of the Board

24 shall appear—

25 ‘‘(A) before the Committee on Banking

26 and Financial Services of the House of Rep-
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1 resentatives on or about February 20 of even

2 numbered calendar years and on or about July

3 20 of odd numbered calendar years;

4 ‘‘(B) before the Committee on Banking,

5 Housing, and Urban Affairs of the Senate on or

6 about July 20 of even numbered calendar years

7 and on or about February 20 of odd numbered

8 calendar years; and

9 ‘‘(C) before either Committee referred to in

10 subparagraph (A) or (B), upon request, fol11 lowing the scheduled appearance of the Chair12 man before the other Committee under sub13 paragraph (A) or (B).

14 ‘‘(b) CONGRESSIONAL REPORT.—The Board shall,

15 concurrent with each semi-annual hearing required by this

16 section, submit a written report to the Committee on

17 Banking, Housing, and Urban Affairs of the Senate and

18 the Committee on Banking and Financial Services of the

19 House of Representatives, containing a discussion of the

20 conduct of monetary policy and economic developments

21 and prospects for the future, taking into account past and

22 prospective developments in employment, unemployment,

23 production, investment, real income, productivity, ex24 change rates, international trade and payments, and

25 prices.’’.
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1 TITLE XI—BANKING AND

2 HOUSING AGENCY REPORTS

3 SEC. 1101. SHORT TITLE.

4 This title may be cited as the ‘‘Federal Reporting Act

5 of 2000’’.

6 SEC. 1102. PRESERVATION OF CERTAIN REPORTING RE7 QUIREMENTS.

8 Section 3003(a)(1) of the Federal Reports Elimi9 nation and Sunset Act of 1995 (31 U.S.C. 1113 note)

10 shall not apply to any report required to be submitted

11 under any of the following provisions of law:

12 (1) Section 3 of the Employment Act of 1946

13 (15 U.S.C. 1022).

14 (2) Section 309 of the Defense Production Act

15 of 1950 (50 U.S.C. App. 2099).

16 (3) Section 603 of the Public Works and Eco17 nomic Development Act of 1965 (42 U.S.C. 3213).

18 (4) Section 7(o)(1) of the Department of Hous19 ing and Urban Development Act (42 U.S.C.

20 3535(o)(1)).

21 (5) Section 540(c) of the National Housing Act

22 (12 U.S.C. 1735f–18(c)).

23 (6) Paragraphs (2) and (6) of section 808(e) of

24 the Civil Rights Act of 1968 (42 U.S.C. 3608(e)).
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1 (7) Section 1061 of the Housing and Commu2 nity Development Act of 1992 (42 U.S.C. 4856).

3 (8) Section 203(v) of the National Housing Act

4 (12 U.S.C. 1709(v)), as added by section 504 of the

5 Housing and Community Development Act of 1992

6 (Public Law 102–550; 106 Stat. 3780).

7 (9) Section 802 of the Housing Act of 1954 (12

8 U.S.C. 1701o).

9 (10) Section 8 of the Department of Housing

10 and Urban Development Act (42 U.S.C. 3536).

11 (11) Section 1320 of the National Flood Insur12 ance Act of 1968 (42 U.S.C. 4027).

13 (12) Section 4(e)(2) of the Department of

14 Housing and Urban Development Act (42 U.S.C.

15 3533(e)(2).

16 (13) Section 205(g) of the National Housing

17 Act (12 U.S.C. 1711(g)).

18 (14) Section 701(c)(1) of the International Fi19 nancial Institutions Act (22 U.S.C. 262d(c)(1)).

20 (15) Paragraphs (1) and (2) of section 5302(c)

21 of title 31, United States Code.

22 (16) Section 18(f)(7) of the Federal Trade

23 Commission Act. (15 U.S.C. 57a(f)(7)).

24 (17) Section 333 of the Revised Statutes of the

25 United States (12 U.S.C. 14).
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1 (18) Section 3(g) of the Home Owners’ Loan

2 Act (12 U.S.C. 1462a(g)).

3 (19) Section 304 of the Appalachian Regional

4 Development Act of 1965 (40 U.S.C. App. 304).

5 (20) Sections 2(b)(1)(A), 8(a), 8(c), 10(g)(1),

6 and 11(c) of the Export-Import Bank Act of 1945

7 (12 U.S.C. 635(b)(1)(A), 635g(a), 635g(c), 635i–

8 3(g), and 635i–5(c)).

9 (21) Section 17(a) of the Federal Deposit In10 surance Act (12 U.S.C. 1827(a)).

11 (22) Section 13 of the Federal Financing Bank

12 Act of 1973 (12 U.S.C. 2292).

13 (23) Section 2B(d) of the Federal Home Loan

14 Bank Act (12 U.S.C. 1422b(d)).

15 (24) Section 1002(b) of Financial Institutions

16 Reform, Recovery, and Enforcement Act of 1989

17 (12 U.S.C. 1811 note).

18 (25) Section 8 of the Fair Credit and Charge

19 Card Disclosure Act of 1988 (15 U.S.C. 1637 note).

20 (26) Section 136(b)(4)(B) of the Truth in

21 Lending Act (15 U.S.C. 1646(b)(4)(B)).

22 (27) Section 707 of the Equal Credit Oppor23 tunity Act (15 U.S.C. 1691f).

24 (28) Section 114 of the Truth in Lending Act

25 (15 U.S.C. 1613).
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1 (29) The seventh undesignated paragraph of

2 section 10 of the Federal Reserve Act (12 U.S.C.

3 247).

4 (30) The tenth undesignated paragraph of sec5 tion 10 of the Federal Reserve Act (12 U.S.C.

6 247a).

7 (31) Section 815 of the Fair Debt Collection

8 Practices Act (15 U.S.C. 1692m).

9 (32) Section 102(d) of the Federal Credit

10 Union Act (12 U.S.C. 1752a(d)).

11 (33) Section 21B(i) of the Federal Home Loan

12 Bank Act (12 U.S.C. 1441b(i)).

13 (34) Section 607(a) of the Housing and Com14 munity Development Amendments of 1978 (42

15 U.S.C. 8106(a)).

16 (35) Section 708(l) of the Defense Production

17 Act of 1950 (50 U.S.C. Ap. 2158(l)).

18 (36) Section 2546 of the Comprehensive Thrift

19 and Bank Fraud Prosecution and Taxpayer Recov20 ery Act of 1990 (28 U.S.C. 522 note).

21 (37) Section 202(b)(8) of the National Housing

22 Act (12 U.S.C. 1708(b)(8)).

23 SEC. 1103. COORDINATION OF REPORTING REQUIREMENTS.

24 (a) FEDERAL DEPOSIT INSURANCE CORPORATION.—

25 Section 17(a) of the Federal Deposit Insurance Act (12
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1 U.S.C. 1827(a)) is amended by adding at the end the fol2 lowing new paragraph:

3 ‘‘(3) COORDINATION WITH OTHER REPORT RE4 QUIREMENTS.—The report required under this sub5 section shall include the report required under sec6 tion 18(f)(7) of the Federal Trade Commission

7 Act.’’.

8 (b) BOARD OF GOVERNORS OF THE FEDERAL RE9 SERVE SYSTEM.—The 7th undesignated paragraph of sec10 tion 10 of the Federal Reserve Act (12 U.S.C. 247) is

11 amended by adding at the end the following new sentence:

12 ‘‘The report required under this paragraph shall include

13 the reports required under section 707 of the Equal Credit

14 Opportunity Act, section 18(f)(7) of the Federal Trade

15 Commission Act, section 114 of the Truth in Lending Act,

16 and the 10th undesignated paragraph of this section.’’.

17 (c) COMPTROLLER OF THE CURRENCY.—Section 333

18 of the Revised Statutes of the United States (12 U.S.C.

19 14) is amended by adding at the end the following new

20 sentence: ‘‘The report required under this section shall in21 clude the report required under section 18(f)(7) of the

22 Federal Trade Commission Act.’’.

23 (d) EXPORT-IMPORT BANK.—
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1 (1) IN GENERAL.— Section 2(b)(1)(A) of the

2 Export-Import Bank Act of 1945 (12 U.S.C.

3 635(b)(1)(A)) is amended—

4 (A) by striking ‘‘a annual’’ and inserting

5 ‘‘an annual’’; and

6 (B) by adding at the end the following new

7 sentence: ‘‘The annual report required under

8 this subparagraph shall include the report re9 quired under section 10(g).’’.

10 (2) TECHNICAL AND CONFORMING AMEND11 MENT.—Section 10(g)(1) of the Export-Import

12 Bank Act of 1945 (12 U.S.C. 635i–3(g)(1)) is

13 amended—

14 (A) by striking ‘‘On or’’ and all that fol15 lows through ‘‘the Bank’’ and inserting ‘‘The

16 Bank’’; and

17 (B) by striking ‘‘a report’’ and inserting

18 ‘‘an annual report’’.

19 (e) DEPARTMENT OF HOUSING AND URBAN DEVEL20 OPMENT.—Section 8 of the Department of Housing and

21 Urban Development Act (42 U.S.C. 3536) is amended by

22 adding at the end the following new sentence: ‘‘The report

23 required under this section shall include the reports re24 quired under paragraphs (2) and (6) of section 808(e) of

25 the Civil Rights Act of 1968, the reports required under
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1 subsections (a) and (b) of section 1061 of the Housing

2 and Community Development Act of 1992, the report re3 quired under section 802 of the Housing Act of 1954, and

4 the report required under section 4(e)(2) of this Act.’’.

5 (f) FEDERAL HOUSING ADMINISTRATION.—Section

6 203(v) of the National Housing Act (12 U.S.C. 1709(v)),

7 as added by section 504 of the Housing and Community

8 Development Act of 1992, is amended by adding at the

9 end the following new sentence:

10 ‘‘The report required under this subsection shall include

11 the report required under section 540(c) and the report

12 required under section 205(g).’’.

13 (g) INTERNATIONAL FINANCIAL INSTITUTIONS

14 ACT.—Section 701(c)(1) of the International Financial

15 Institutions Act (22 U.S.C. 262d(c)(1)) is amended by

16 striking ‘‘Not later’’ and all that follows through ‘‘quar17 terly’’ and inserting ‘‘The Secretary of the Treasury shall

18 report annually’’.

19 SEC. 1104. ELIMINATION OF CERTAIN REPORTING RE20 QUIREMENTS.

21 (a) EXPORT-IMPORT BANK.—The Export-Import

22 Bank Act of 1945 (12 U.S.C. 635 et seq.) is amended—

23 (1) in section 2(b)(1)(D)—

24 (A) by striking ‘‘(i)’’; and

25 (B) by striking clause (ii);
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1 (2) in section 2(b)(8), by striking the last sen2 tence;

3 (3) in section 6(b), by striking paragraph (2)

4 and redesignating paragraph (3) as paragraph (2);

5 and

6 (4) in section 8, by striking subsections (b) and

7 (d) and redesignating subsections (c) and (e) as sub8 sections (b) and (c), respectively.

9 (b) FEDERAL DEPOSIT INSURANCE CORPORATION.—

10 Section 17 of the Federal Deposit Insurance Act (12

11 U.S.C. 1827) is amended by striking subsection (h).

12 TITLE XII—FINANCIAL

13 REGULATORY RELIEF

14 SEC. 1200. SHORT TITLE.

15 This title may be cited as the ‘‘Financial Regulatory

16 Relief and Economic Efficiency Act of 2000’’.

17 Subtitle A—Improving Monetary

18 Policy and Financial Institution

19 Management Practices

20 SEC. 1201. REPEAL OF SAVINGS ASSOCIATION LIQUIDITY

21 PROVISION.

22 (a) REPEAL OF LIQUIDITY PROVISION.—Section 6 of

23 the Home Owners’ Loan Act (12 U.S.C. 1465) is hereby

24 repealed.

25 (b) CONFORMING AMENDMENTS.—
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1 (1) SECTION 5.—Section 5(c)(1)(M) of the

2 Home Owners’ Loan Act (12 U.S.C. 1464(c)(1)(M))

3 is amended to read as follows:

4 ‘‘(M) LIQUIDITY INVESTMENTS.—Invest5 ments (other than equity investments), identi6 fied by the Director, for liquidity purposes, in7 cluding cash, funds on deposit at a Federal re8 serve bank or a Federal home loan bank, or

9 bankers’ acceptances.’’.

10 (2) SECTION 10.—Section 10(m)(4)(B)(iii) of

11 the Home Owners’ Loan Act (12 U.S.C.

12 1467a(m)(4)(B)(iii)) is amended by inserting ‘‘as in

13 effect on the day before the date of the enactment

14 of the Financial Regulatory Relief and Economic Ef15 ficiency Act of 2000,’’ after ‘‘Loan Act,’’.

16 SEC. 1202. NONCONTROLLING INVESTMENTS BY SAVINGS

17 ASSOCIATION HOLDING COMPANIES.

18 Section 10(e)(1)(A)(iii) of the Home Owners’ Loan

19 Act (12 U.S.C. 1467a(e)(1)(A)(iii)) is amended—

20 (1) by inserting ‘‘, except with the prior written

21 approval of the Director,’’ after ‘‘or to retain’’; and

22 (2) by striking ‘‘so acquire or retain’’ and in23 serting ‘‘acquire or retain, and the Director may not

24 authorize acquisition or retention of,’’.
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1 SEC. 1203. REPEAL OF DEPOSIT BROKER NOTIFICATION

2 AND RECORDKEEPING REQUIREMENT.

3 Section 29A of the Federal Deposit Insurance Act

4 (12 U.S.C. 1831f–1) is hereby repealed.

5 SEC. 1204. EXPEDITED PROCEDURES FOR CERTAIN REOR6 GANIZATIONS.

7 The National Bank Consolidation and Merger Act

8 (12 U.S.C. 215 et seq.) is amended—

9 (1) by redesignating section 5 as section 7; and

10 (2) by inserting after section 4 the following

11 new section:

12 ‘‘SEC. 5. EXPEDITED PROCEDURES FOR CERTAIN REORGA13 NIZATIONS.

14 ‘‘(a) IN GENERAL.—A national bank may, with the

15 approval of the Comptroller, pursuant to rules and regula16 tions promulgated by the Comptroller, and upon the af17 firmative vote of the shareholders of such bank owning

18 at least two-thirds of its capital stock outstanding, reorga19 nize so as to become a subsidiary of a bank holding com20 pany or of a company that will, upon consummation of

21 such reorganization, become a bank holding company.

22 ‘‘(b) REORGANIZATION PLAN.—A reorganization au23 thorized under subsection (a) shall be carried out in ac24 cordance with a reorganization plan that—

25 ‘‘(1) specifies the manner in which the reorga26 nization shall be carried out;
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1 ‘‘(2) is approved by a majority of the entire

2 board of directors of the national bank;

3 ‘‘(3) specifies—

4 ‘‘(A) the amount of cash or securities of

5 the bank holding company, or both, or other

6 consideration to be paid to the shareholders of

7 the reorganizing bank in exchange for their

8 shares of stock of the bank;

9 ‘‘(B) the date as of which the rights of

10 each shareholder to participate in such ex11 change will be determined; and

12 ‘‘(C) the manner in which the exchange

13 will be carried out; and

14 ‘‘(4) is submitted to the shareholders of the re15 organizing bank at a meeting to be held on the call

16 of the directors in accordance with the procedures

17 prescribed in connection with a merger of a national

18 bank under section 3.

19 ‘‘(c) RIGHTS OF DISSENTING SHAREHOLDERS.—If,

20 pursuant to this section, a reorganization plan has been

21 approved by the shareholders and the Comptroller, any

22 shareholder of the bank who has voted against the reorga23 nization at the meeting referred to in subsection (b)(4),

24 or has given notice in writing at or prior to that meeting

25 to the presiding officer that the shareholder dissents from
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1 the reorganization plan, shall be entitled to receive the

2 value of his or her shares, as provided by section 3 for

3 the merger of a national bank.

4 ‘‘(d) EFFECT OF REORGANIZATION.—The corporate

5 existence of a national bank that reorganizes in accord6 ance with this section shall not be deemed to have been

7 affected in any way by reason of such reorganization.

8 ‘‘(e) APPROVAL UNDER THE BANK HOLDING COM9 PANY ACT.—This section does not affect in any way the

10 applicability of the Bank Holding Company Act of 1956

11 to a transaction described in subsection (a).’’.

12 SEC. 1205. NATIONAL BANK DIRECTORS.

13 (a) AMENDMENTS TO THE REVISED STATUTES.—

14 Section 5145 of the Revised Statutes of the United States

15 (12 U.S.C. 71) is amended—

16 (1) by striking ‘‘for one year’’ and inserting

17 ‘‘for a period of not more than 3 years’’; and

18 (2) by adding at the end the following: ‘‘In ac19 cordance with regulations issued by the Comptroller

20 of the Currency, a national bank may adopt bylaws

21 that provide for staggering the terms of its direc22 tors.’’.

23 (b) AMENDMENT TO THE BANKING ACT OF 1933.—

24 Section 31 of the Banking Act of 1933 (12 U.S.C. 71a)

25 is amended in the first sentence, by inserting before the
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1 period ‘‘, except that the Comptroller of the Currency may,

2 by regulation or order, exempt a national bank from the

3 25-member limit established by this section’’.

4 SEC. 1206. AMENDMENT TO NATIONAL BANK CONSOLIDA5 TION AND MERGER ACT.

6 The National Bank Consolidation and Merger Act

7 (12 U.S.C. 215 et seq.) is amended by inserting after sec8 tion 5, as added by this title, the following new section:

9 ‘‘SEC. 6. MERGERS AND CONSOLIDATIONS WITH SUBSIDI10 ARIES AND NONBANK AFFILIATES.

11 ‘‘(a) IN GENERAL.—Upon the approval of the Comp12 troller, a national bank may merge with 1 or more of its

13 nonbank subsidiaries or affiliates.

14 ‘‘(b) SCOPE.—Nothing in this section shall be

15 construed—

16 ‘‘(1) to affect the applicability of section 18(c)

17 of the Federal Deposit Insurance Act; or

18 ‘‘(2) to grant a national bank any power or au19 thority that is not permissible for a national bank

20 under other applicable provisions of law.

21 ‘‘(c) REGULATIONS.—The Comptroller shall promul22 gate regulations to implement this section.’’.
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1 SEC. 1207. LOANS ON OR PURCHASES BY INSTITUTIONS OF

2 THEIR OWN STOCK; AFFILIATIONS.

3 (a) AMENDMENT TO THE REVISED STATUTES.—Sec4 tion 5201 of the Revised Statutes of the United States

5 (12 U.S.C. 83) is amended to read as follows:

6 ‘‘SEC. 5201. LOANS BY BANK ON ITS OWN STOCK.

7 ‘‘(a) GENERAL PROHIBITION.—No national bank

8 shall make any loan or discount on the security of the

9 shares of its own capital stock.

10 ‘‘(b) EXCLUSION.—For purposes of this section, a

11 national bank shall not be deemed to be making a loan

12 or discount on the security of the shares of its own capital

13 stock if it acquires the stock to prevent loss upon a debt

14 previously contracted for in good faith.’’.

15 (b) AMENDMENTS TO THE FEDERAL DEPOSIT IN16 SURANCE ACT.—Section 18 of the Federal Deposit Insur17 ance Act (12 U.S.C. 1828) is amended—

18 (1) by redesignating subsection (t), as added by

19 section 730 of the Gramm-Leach-Bliley Act (Public

20 Law 106–102; 113 Stat. 1476), as subsection (u);

21 and

22 (2) by adding at the end the following new sub23 section:

24 ‘‘(v) LOANS BY INSURED INSTITUTIONS ON THEIR

25 OWN STOCK.—
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1 ‘‘(1) GENERAL PROHIBITION.—No insured de2 pository institution may make any loan or discount

3 on the security of the shares of its own capital stock.

4 ‘‘(2) EXCLUSION.—For purposes of this sub5 section, an insured depository institution shall not be

6 deemed to be making a loan or discount on the secu7 rity of the shares of its own capital stock if it ac8 quires the stock to prevent loss upon a debt pre9 viously contracted for in good faith.’’.

10 SEC. 1208. PURCHASED MORTGAGE SERVICING RIGHTS.

11 Section 475 of the Federal Deposit Insurance Cor12 poration Improvement Act of 1991 (12 U.S.C. 1828 note)

13 is amended—

14 (1) in subsection (a)(1), by inserting ‘‘(or such

15 other percentage exceeding 90 percent but not ex16 ceeding 100 percent, as may be determined under

17 subsection (b))’’ after ‘‘90 percent’’;

18 (2) by redesignating subsections (b) and (c) as

19 subsections (c) and (d), respectively, and by insert20 ing after subsection (a) the following new subsection:

21 ‘‘(b) AUTHORITY TO DETERMINE PERCENTAGE BY

22 WHICH TO DISCOUNT VALUE OF SERVICING RIGHTS.—

23 The appropriate Federal banking agencies may allow read24 ily marketable purchased mortgage servicing rights to be

25 valued at more than 90 percent of their fair market value
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1 but at not more than 100 percent of such value, if such

2 agencies jointly make a finding that such valuation would

3 not have an adverse effect on the deposit insurance funds

4 or the safety and soundness of insured depository institu5 tions.’’; and

6 (3) in subsection (c), by striking ‘‘and’’ and in7 serting ‘‘, ‘deposit insurance fund’, and’’.

8 Subtitle B—Streamlining Activities

9 of Institutions

10 SEC. 1211. CALL REPORT SIMPLIFICATION.

11 (a) MODERNIZATION OF CALL REPORT FILING AND

12 DISCLOSURE SYSTEM.—In order to reduce the adminis13 trative requirements pertaining to bank reports of condi14 tion, savings association financial reports, and bank hold15 ing company consolidated and parent-only financial state16 ments, and to improve the timeliness of such reports and

17 statements, the Federal banking agencies shall—

18 (1) work jointly to develop a system under

19 which—

20 (A) insured depository institutions and

21 their affiliates may file such reports and state22 ments electronically; and

23 (B) the Federal banking agencies may

24 make such reports and statements available to

25 the public electronically; and
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1 (2) not later than 1 year after the date of the

2 enactment of this Act, report to the Congress and

3 make recommendations for legislation that would en4 hance efficiency for filers and users of such reports

5 and statements.

6 (b) UNIFORM REPORTS AND SIMPLIFICATION OF IN7 STRUCTIONS.—The Federal banking agencies shall, con8 sistent with the principles of safety and soundness, work

9 jointly—

10 (1) to adopt a single form for the filing of core

11 information required to be submitted under Federal

12 law to all such agencies in the reports and state13 ments referred to in subsection (a); and

14 (2) to simplify instructions accompanying such

15 reports and statements and to provide an index to

16 the instructions that is adequate to meet the needs

17 of both filers and users.

18 (c) REVIEW OF CALL REPORT SCHEDULE.—Each

19 Federal banking agency shall—

20 (1) review the information required by sched21 ules supplementing the core information referred to

22 in subsection (b); and

23 (2) eliminate requirements that are not war24 ranted for reasons of safety and soundness or other

25 public purposes.
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1 (d) DEFINITION.—In this section, the term ‘‘Federal

2 banking agency’’ has the same meaning as in section 3

3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

4 Subtitle C—Streamlining Agency

5 Actions

6 SEC. 1221. ELIMINATION OF DUPLICATIVE DISCLOSURE OF

7 FAIR MARKET VALUE OF ASSETS AND LIABIL8 ITIES.

9 Section 37(a)(3) of the Federal Deposit Insurance

10 Act (12 U.S.C. 1831n(a)(3)) is amended by striking sub11 paragraph (D).

12 SEC. 1222. PAYMENT OF INTEREST IN RECEIVERSHIPS

13 WITH SURPLUS FUNDS.

14 Section 11(d)(10) of the Federal Deposit Insurance

15 Act (12 U.S.C. 1821(d)(10)) is amended by adding at the

16 end the following new subparagraph:

17 ‘‘(C) RULEMAKING AUTHORITY OF COR18 PORATION.—The Corporation may prescribe

19 such rules, including definitions of terms, as it

20 deems appropriate to establish a single uniform

21 interest rate for or to make payments of post

22 insolvency interest to creditors holding proven

23 claims against the receivership estates of in24 sured Federal or State depository institutions
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1 following satisfaction by the receiver of the

2 principal amount of all creditor claims.’’.

3 SEC. 1223. REPEAL OF REPORTING REQUIREMENT ON DIF4 FERENCES IN ACCOUNTING STANDARDS.

5 Section 37(c) of the Federal Deposit Insurance Act

6 (12 U.S.C. 1831n(c)) is amended—

7 (1) in paragraph (1), by striking ‘‘Each’’ and

8 all that follows through ‘‘a report’’ and inserting

9 ‘‘The Federal banking agencies shall jointly submit

10 an annual report’’; and

11 (2) by inserting ‘‘any’’ before ‘‘such agency’’

12 each place that term appears.

13 SEC. 1224. EXTENSION OF TIME.

14 Section 6(a)(1) of the Federal Home Loan Bank Act

15 (12 U.S.C. 1426(a)(1)) is amended by striking ‘‘1 year’’

16 and inserting ‘‘18 months’’.

17 Subtitle D—Technical Corrections

18 SEC. 1231. TECHNICAL CORRECTION RELATING TO DE19 POSIT INSURANCE FUNDS.

20 (a) IN GENERAL.—Section 2707 of the Deposit In21 surance Funds Act of 1996 (Public Law 104–208; 110

22 Stat. 3009–496) is amended—

23 (1) by striking ‘‘7(b)(2)(C)’’ and inserting

24 ‘‘7(b)(2)(E)’’; and
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1 (2) by striking ‘‘, as redesignated by section

2 2704(d)(6) of this subtitle’’.

3 (b) EFFECTIVE DATE.—The amendments made by

4 subsection (a) shall be deemed to have the same effective

5 date as section 2707 of the Deposit Insurance Funds Act

6 of 1996 (Public Law 104–208; 110 Stat. 3009–496).

7 SEC. 1232. RULES FOR CONTINUATION OF DEPOSIT INSUR8 ANCE FOR MEMBER BANKS CONVERTING

9 CHARTERS.

10 Section 8(o) of the Federal Deposit Insurance Act

11 (12 U.S.C. 1818(o)) is amended in the second sentence,

12 by striking ‘‘subsection (d) of section 4’’ and inserting

13 ‘‘subsection (c) or (d) of section 4’’.

14 SEC. 1233. AMENDMENTS TO THE REVISED STATUTES OF

15 THE UNITED STATES.

16 (a) WAIVER OF CITIZENSHIP REQUIREMENT FOR

17 NATIONAL BANK DIRECTORS.—Section 5146 of the Re18 vised Statutes of the United States (12 U.S.C. 72) is

19 amended in the first sentence, by inserting before the pe20 riod ‘‘, and waive the requirement of citizenship in the case

21 of not more than a minority of the total number of direc22 tors’’.

23 (b) TECHNICAL AMENDMENT TO THE REVISED

24 STATUTES.—Section 329 of the Revised Statutes of the

25 United States (12 U.S.C. 11) is amended by striking ‘‘to
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1 be interested in any association issuing national currency

2 under the laws of the United States’’ and inserting ‘‘to

3 hold an interest in any national bank’’.

4 (c) REPEAL OF UNNECESSARY CAPITAL AND SUR5 PLUS REQUIREMENT.—Section 5138 of the Revised Stat6 utes of the United States (12 U.S.C. 51) is hereby re7 pealed.

8 SEC. 1234. CONFORMING CHANGE TO THE INTERNATIONAL

9 BANKING ACT OF 1978.

10 Section 4(b) of the International Banking Act of

11 1978 (12 U.S.C. 3102(b)) is amended in the second sen12 tence, by striking paragraph (1) and by redesignating

13 paragraphs (2) through (4) as paragraphs (1) through

14 (3), respectively.

Passed the House of Representatives December 5,

2000.

Attest:

Clerk.

106TH CONGRESS

2D SESSION H. R. 5640

AN ACT

To expand homeownership in the United States,

and for other purposes.