PUBLIC LAW 106–569—DEC. 27, 2000

AMERICAN HOMEOWNERSHIP AND

ECONOMIC OPPORTUNITY ACT OF 2000

114 STAT. 2944 PUBLIC LAW 106–569—DEC. 27, 2000

Public Law 106–569

106th Congress

An Act

To expand homeownership in the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION. 1. SHORT TITLE AND TABLE OF CONTENTS.

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

Homeownership and Economic Opportunity Act of 2000’’. (b) TABLE OF CONTENTS.—The table of contents for this Act

is as follows:

Sec. 1. Short title and table of contents.

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

Sec. 601. Short title; references.

American

Homeownership

and Economic

Opportunity Act

of 2000.

12 USC 1701

note.

Dec. 27, 2000

[H.R. 5640]

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2945

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

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.

114 STAT. 2946 PUBLIC LAW 106–569—DEC. 27, 2000

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

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.

TITLE I—REMOVAL OF BARRIERS TO

HOUSING AFFORDABILITY

SEC. 101. SHORT TITLE.

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

Removal Act of 2000’’.

SEC. 102. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES.

(a) AUTHORIZATION OF APPROPRIATIONS.—Subsection (a) of section 1204 of the Housing and Community Development Act of

1992 (42 U.S.C. 12705c(a)) is amended to read as follows: ‘‘(a) FUNDING.—There is authorized to be appropriated for

grants under subsections (b) and (c) such sums as may be necessary

for each of fiscal years 2001, 2002, 2003, 2004, and 2005.’’.

(b) CONSOLIDATION OF STATE AND LOCAL GRANTS.—Subsection

(b) of section 1204 of the Housing and Community Development

Act of 1992 (42 U.S.C. 12705c(b)) is amended—

(1) in the subsection heading, by striking ‘‘STATE GRANTS’’

and inserting ‘‘GRANT AUTHORITY’’;

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

after ‘‘States’’ the following: ‘‘and units of general local government (including consortia of such governments)’’;

Housing

Affordability

Barrier Removal

Act of 2000.

42 USC 12701

note.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2947

(3) in paragraph (3), by striking ‘‘a State program to reduce

State and local’’ and inserting ‘‘State, local, or regional programs to reduce’’;

(4) in paragraph (4), by inserting ‘‘or local’’ after ‘‘State’’;

and

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

(c) REPEAL OF LOCAL GRANTS PROVISION.—Section 1204 of the

Housing and Community Development Act of 1992 (42 U.S.C.

12705c) is amended by striking subsection (c).

(d) APPLICATION AND SELECTION.—The last sentence of section

1204(e) of the Housing and Community Development Act of 1992

(42 U.S.C. 12705c(e)) is amended—

(1) by striking ‘‘and for the selection of units of general

local government to receive grants under subsection (f )(2)’’;

and

(2) by inserting before the period at the end the following:

‘‘and such criteria shall require that grant amounts be used

in a manner consistent with the strategy contained in the

comprehensive housing affordability strategy for the jurisdiction

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

Affordable Housing Act’’.

(e) SELECTION OF GRANTEES.—Subsection (f ) of section 1204

of the Housing and Community Development Act of 1992 (42 U.S.C.

12705c(f )) is amended to read as follows:

‘‘(f ) SELECTION OF GRANTEES.—To the extent amounts are made

available to carry out this section, the Secretary shall provide

grants on a competitive basis to eligible grantees based on the

proposed uses of such amounts, as provided in applications under

subsection (e).’’.

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

and Community Development Act of 1974 (42 U.S.C. 5307(a)(1))

is amended—

(1) in subparagraph (G), by inserting ‘‘and’’ after the semicolon at the end;

(2) by striking subparagraph (H); and

(3) by redesignating subparagraph (I) as subparagraph (H).

SEC. 103. REGULATORY BARRIERS CLEARINGHOUSE.

Section 1205 of the Housing and Community Development Act

of 1992 (42 U.S.C. 12705d) is amended—

(1) in subsection (a)—

(A) in the matter preceding paragraph (1), by striking

‘‘receive, collect, process, and assemble’’ and inserting

‘‘serve as a national repository to receive, collect, process,

assemble, and disseminate’’;

(B) in paragraph (1)—

(i) by striking ‘‘, including’’ and inserting

‘‘(including’’; and

(ii) by inserting before the semicolon at the end

the following: ‘‘), and the prevalence and effects on

affordable housing of such laws, regulations, and policies’’;

(C) in paragraph (2), by inserting before the semicolon

the following: ‘‘, including particularly innovative or

successful activities, strategies, and plans’’; and

114 STAT. 2948 PUBLIC LAW 106–569—DEC. 27, 2000

(D) in paragraph (3), by inserting before the period

at the end the following: ‘‘, including particularly innovative

or successful strategies, activities, and plans’’;

(2) in subsection (b)— (A) in paragraph (1), by striking ‘‘and’’ at the end;

(B) in paragraph (2), by striking the period at the

end and inserting ‘‘; and’’; and

(C) by adding at the end the following new paragraph: ‘‘(3) by making available through a World Wide Web site

of the Department, by electronic mail, or otherwise, provide

to each housing agency of a unit of general local government

that serves an area having a population greater than 100,000,

an index of all State and local strategies and plans submitted

under subsection (a) to the clearinghouse, which— ‘‘(A) shall describe the types of barriers to affordable

housing that the strategy or plan was designed to ameliorate or remove; and ‘‘(B) shall, not later than 30 days after submission

to the clearinghouse of any new strategy or plan, be

updated to include the new strategy or plan submitted.’’;

and

(3) by adding at the end the following new subsections: ‘‘(c) ORGANIZATION.—The clearinghouse under this section shall

be established within the Office of Policy Development of the

Department of Housing and Urban Development and shall be under

the direction of the Assistant Secretary for Policy Development

and Research. ‘‘(d) TIMING.—The clearinghouse under this section (as amended

by section 103 of the Housing Affordability Barrier Removal Act

of 2000) shall be established and commence carrying out the functions of the clearinghouse under this section not later than 1 year

after the date of the enactment of such Act. The Secretary of

Housing and Urban Development may comply with the requirements under this section by reestablishing the clearinghouse that

was originally established to comply with this section and updating

and improving such clearinghouse to the extent necessary to comply

with the requirements of this section as in effect pursuant to

the enactment of such Act.’’.

TITLE II—HOMEOWNERSHIP FOR

WORKING FAMILIES

SEC. 201. HOME EQUITY CONVERSION MORTGAGES.

(a) INSURANCE FOR MORTGAGES TO REFINANCE EXISTING

HECMS.—

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

(12 U.S.C. 1715z–20) is amended— (A) by redesignating subsection (k) as subsection (m);

and

(B) by inserting after subsection ( j) the following new

subsection:

‘‘(k) INSURANCE AUTHORITY FOR REFINANCINGS.—

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

by a mortgagee, insure under this subsection any mortgage

given to refinance an existing home equity conversion mortgage

insured under this section.

Deadline.

Deadline.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2949

‘‘(2) ANTI-CHURNING DISCLOSURE.—The Secretary shall, by

regulation, require that the mortgagee of a mortgage insured

under this subsection, provide to the mortgagor, within an

appropriate time period and in a manner established in such

regulations, a good faith estimate of: (A) the total cost of the

refinancing; and (B) the increase in the mortgagor’s principal

limit as measured by the estimated initial principal limit on

the mortgage to be insured under this subsection less the

current principal limit on the home equity conversion mortgage

that is being refinanced and insured under this subsection.

‘‘(3) WAIVER OF COUNSELING REQUIREMENT.—The mortgagor

under a mortgage insured under this subsection may waive

the applicability, with respect to such mortgage, of the requirements under subsection (d)(2)(B) (relating to third party counseling), but only if— ‘‘(A) the mortgagor has received the disclosure required

under paragraph (2); ‘‘(B) the increase in the principal limit described in

paragraph (2) exceeds the amount of the total cost of refinancing (as described in such paragraph) by an amount

to be determined by the Secretary; and ‘‘(C) the time between the closing of the original home

equity conversion mortgage that is refinanced through the

mortgage insured under this subsection and the application

for a refinancing mortgage insured under this subsection

does not exceed 5 years.

‘‘(4) CREDIT FOR PREMIUMS PAID.—Notwithstanding section

203(c)(2)(A), the Secretary may reduce the amount of the single

premium payment otherwise collected under such section at

the time of the insurance of a mortgage refinanced and insured

under this subsection. The amount of the single premium for

mortgages refinanced under this subsection shall be determined

by the Secretary based on the actuarial study required under

paragraph (5).

‘‘(5) ACTUARIAL STUDY.—Not later than 180 days after the

date of the enactment of the American Homeownership and

Economic Opportunity Act of 2000, the Secretary shall conduct

an actuarial analysis to determine the adequacy of the insurance premiums collected under the program under this subsection with respect to—

‘‘(A) a reduction in the single premium payment collected at the time of the insurance of a mortgage refinanced

and insured under this subsection;

‘‘(B) the establishment of a single national limit on

the benefits of insurance under subsection (g) (relating

to limitation on insurance authority); and

‘‘(C) the combined effect of reduced insurance premiums and a single national limitation on insurance

authority.

‘‘(6) FEES.—The Secretary may establish a limit on the

origination fee that may be charged to a mortgagor under

a mortgage insured under this subsection, except that such

limitation shall provide that the origination fee may be fully

financed with the mortgage and shall include any fees paid

to correspondent mortgagees approved by the Secretary.’’.

(2) REGULATIONS.—The Secretary shall issue any final

regulations necessary to implement the amendments made by

Deadline.

12 USC 1715z–20

note.

Deadline.

114 STAT. 2950 PUBLIC LAW 106–569—DEC. 27, 2000

paragraph (1) of this subsection, which shall take effect not

later than the expiration of the 180-day period beginning on

the date of the enactment of this Act. The regulations shall

be issued after notice and opportunity for public comment in

accordance with the procedure under section 553 of title 5,

United States Code, applicable to substantive rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section).

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

Housing Act (12 U.S.C. 1715z–20(b)) is amended— (1) in paragraph (2), by striking ‘‘ ‘mortgage’,’’; and

(2) by adding at the end the following new paragraphs:

‘‘(4) MORTGAGE.—The term ‘mortgage’ means a first mortgage or first lien on real estate, in fee simple, on all stock

allocated to a dwelling in a residential cooperative housing

corporation, or on a leasehold— ‘‘(A) under a lease for not less than 99 years that

is renewable; or ‘‘(B) under a lease having a period of not less than

10 years to run beyond the maturity date of the mortgage.

‘‘(5) FIRST MORTGAGE.—The term ‘first mortgage’ means

such classes of first liens as are commonly given to secure

advances on, or the unpaid purchase price of, real estate or

all stock allocated to a dwelling unit in a residential cooperative

housing corporation, under the laws of the State in which

the real estate or dwelling unit is located, together with the

credit instruments, if any, secured thereby.’’.

(c) WAIVER OF UP-FRONT PREMIUMS FOR MORTGAGES USED

TO FUND LONG-TERM CARE INSURANCE.—

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

(12 U.S.C. 1715z–20) is amended by inserting after subsection

(k) (as added by subsection (a) of this section) the following

new subsection:

‘‘(l) WAIVER OF UP-FRONT PREMIUMS FOR MORTGAGES TO FUND

LONG-TERM CARE INSURANCE.—

‘‘(1) IN GENERAL.—In the case of any mortgage insured

under this section under which the total amount (except as

provided in paragraph (2)) of all future payments described

in subsection (b)(3) will be used only for costs of a qualified

long-term care insurance contract that covers the mortgagor

or members of the household residing in the property that

is subject to the mortgage, notwithstanding section 203(c)(2),

the Secretary shall not charge or collect the single premium

payment otherwise required under subparagraph (A) of such

section to be paid at the time of insurance.

‘‘(2) AUTHORITY TO REFINANCE EXISTING MORTGAGE AND

FINANCE CLOSING COSTS.—A mortgage described in paragraph

(1) may provide financing of amounts that are used to satisfy

outstanding mortgage obligations (in accordance with such

limitations as the Secretary shall prescribe) and any amounts

used for initial service charges, appraisal, inspection, and other

fees (as approved by the Secretary) in connection with such

mortgage, and the amount of future payments described in

subsection (b)(3) under the mortgage shall be reduced accordingly.

‘‘(3) DEFINITION.—For purposes of this subsection, the term ‘qualified long-term care insurance contract’ has the meaning

given such term in section 7702B of the Internal Revenue

Notice.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2951

Code of 1986 (26 U.S.C. 7702B)), except that such contract

shall also meet the requirements of—

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

to suitability), and 26 (relating to contingent nonforfeiture)

of the long-term care insurance model regulation promulgated by the National Association of Insurance Commissioners (as adopted as of September 2000); and

‘‘(B) section 8 (relating to contingent nonforfeiture) of

the long-term care insurance model Act promulgated by

the National Association of Insurance Commissioners (as

adopted as of September 2000).’’.

(2) APPLICABILITY.—The provisions of section 255(l) of the

National Housing Act (as added by paragraph (1) of this subsection) shall apply only to mortgages closed on or after April

1, 2001.

(d) STUDY OF SINGLE NATIONAL MORTGAGE LIMIT.—The Secretary of Housing and Urban Development shall conduct an actuarially based study of the effects of establishing, for mortgages insured

under section 255 of the National Housing Act (12 U.S.C. 1715z–

20), a single maximum mortgage amount limitation in lieu of

applicability of section 203(b)(2) of such Act (12 U.S.C. 1709(b)(2)).

The study shall—

(1) examine the effects of establishing such limitation at

different dollar amounts; and

(2) examine the effects of such various limitations on—

(A) the risks to the General Insurance Fund established

under section 519 of such Act;

(B) the mortgage insurance premiums that would be

required to be charged to mortgagors to ensure actuarial

soundness of such Fund; and

(C) take into consideration the various approaches to

providing credit to borrowers who refinance home equity

conversion mortgages insured under section 255 of such

Act.

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

Act, the Secretary shall complete the study under this subsection

and submit a report describing the study and the results of the

study to the Committee on Banking and Financial Services of

the House of Representatives and to the Committee on Banking,

Housing, and Urban Affairs of the Senate.

SEC. 202. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

(a) REAUTHORIZATION.—Subsection (p) of section 11 of the

Housing Opportunity Program Extension Act of 1996 (42 U.S.C.

12805 note) is amended to read as follows:

‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated to carry out this section such sums as may

be necessary for fiscal year 2001.’’.

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

Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note)

is amended by inserting before the period at the end the following:

‘‘, which may include reimbursing an organization, consortium,

or affiliate, upon approval of any required environmental review,

for nongrant amounts of the organization, consortium, or affiliate

advanced before such review to acquire land’’.

Deadline.

12 USC 1715z–20

note.

114 STAT. 2952 PUBLIC LAW 106–569—DEC. 27, 2000

(c) DEADLINE FOR RECAPTURE OF FUNDS.—Section 11 of the

Housing Opportunity Program Extension Act of 1996 (42 U.S.C.

12805 note) is amended— (1) in subsection (i)(5)—

(A) by striking ‘‘if the organization or consortia has

not used any grant amounts’’ and inserting ‘‘the Secretary

shall recapture any grant amounts provided to the

organization or consortia that are not used’’;

(B) by striking ‘‘(or,’’ and inserting ‘‘, except that such

period shall be 36 months’’; and

(C) by striking ‘‘within 36 months), the Secretary shall

recapture such unused amounts’’ and inserting ‘‘and in

the case of a grant amounts provided to a local affiliate

of the organization or consortia that is developing five

or more dwellings in connection with such grant amounts’’;

and

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

section’’ the following: ‘‘and grant amounts provided to a local

affiliate of the organization or consortia that is developing

five or more dwellings in connection with such grant amounts’’.

(d) TECHNICAL CORRECTIONS.—Section 11 of the Housing Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is

amended—

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

International, its affiliates, and other’’; and

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

‘‘consortia’’.

TITLE III—SECTION 8 HOMEOWNERSHIP

OPTION

SEC. 301. DOWNPAYMENT ASSISTANCE.

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

Act of 1937 (42 U.S.C. 1437f(y)) is amended—

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

(2) by inserting after paragraph (6) the following new paragraph:

‘‘(7) DOWNPAYMENT ASSISTANCE.—

‘‘(A) AUTHORITY.—A public housing agency may, in lieu

of providing monthly assistance payments under this subsection on behalf of a family eligible for such assistance

and at the discretion of the public housing agency, provide

assistance for the family in the form of a single grant

to be used only as a contribution toward the downpayment

required in connection with the purchase of a dwelling

for fiscal year 2000 and each fiscal year thereafter to the

extent provided in advance in appropriations Acts.

‘‘(B) AMOUNT.—The amount of a downpayment grant

on behalf of an assisted family may not exceed the amount

that is equal to the sum of the assistance payments that

would be made during the first year of assistance on behalf

of the family, based upon the income of the family at

the time the grant is to be made.’’.

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

(a) shall take effect immediately after the amendments made by

42 USC 1437f

note.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2953

section 555(c) of the Quality Housing and Work Responsibility

Act of 1998 take effect pursuant to such section.

SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSISTANCE FOR

DISABLED FAMILIES.

(a) IN GENERAL.—A public housing agency providing tenantbased assistance on behalf of an eligible family under section 8

of the United States Housing Act of 1937 (42 U.S.C. 1437f ) may

provide assistance for a disabled family that purchases a dwelling

unit (including a dwelling unit under a lease-purchase agreement)

that will be owned by one or more members of the disabled family

and will be occupied by the disabled family, if the disabled family—

(1) purchases the dwelling unit before the expiration of

the 3-year period beginning on the date that the Secretary

first implements the pilot program under this section;

(2) demonstrates that the disabled family has income from

employment or other sources (including public assistance), as

determined in accordance with requirements of the Secretary,

that is not less than twice the payment standard established

by the public housing agency (or such other amount as may

be established by the Secretary);

(3) except as provided by the Secretary, demonstrates at

the time the disabled family initially receives tenant-based

assistance under this section that one or more adult members

of the disabled family have achieved employment for the period

as the Secretary shall require;

(4) participates in a homeownership and housing counseling

program provided by the agency; and

(5) meets any other initial or continuing requirements

established by the public housing agency in accordance with

requirements established by the Secretary.

(b) DETERMINATION OF AMOUNT OF ASSISTANCE.—

(1) IN GENERAL.—

(A) MONTHLY EXPENSES NOT EXCEEDING PAYMENT

STANDARD.—If the monthly homeownership expenses, as

determined in accordance with requirements established

by the Secretary, do not exceed the payment standard,

the monthly assistance payment shall be the amount by

which the homeownership expenses exceed the highest of

the following amounts, rounded to the nearest dollar:

(i) Thirty percent of the monthly adjusted income

of the disabled family.

(ii) Ten percent of the monthly income of the disabled family.

(iii) If the disabled family is receiving payments

for welfare assistance from a public agency, and a

portion of those payments, adjusted in accordance with

the actual housing costs of the disabled family, is

specifically designated by that agency to meet the

housing costs of the disabled family, the portion of

those payments that is so designated.

(B) MONTHLY EXPENSES EXCEED PAYMENT STANDARD.—

If the monthly homeownership expenses, as determined

in accordance with requirements established by the Secretary, exceed the payment standard, the monthly assistance payment shall be the amount by which the applicable

42 USC 1437f

note.

114 STAT. 2954 PUBLIC LAW 106–569—DEC. 27, 2000

payment standard exceeds the highest of the amounts

under clauses (i), (ii), and (iii) of subparagraph (A).

(2) CALCULATION OF AMOUNT.—

(A) LOW-INCOME FAMILIES.—A disabled family that is

a low-income family shall be eligible to receive 100 percent

of the amount calculated under paragraph (1).

(B) INCOME BETWEEN 81 AND 89 PERCENT OF MEDIAN.—

A disabled family whose income is between 81 and 89

percent of the median for the area shall be eligible to

receive 66 percent of the amount calculated under paragraph (1).

(C) INCOME BETWEEN 90 AND 99 PERCENT OF MEDIAN.—

A disabled family whose income is between 90 and 99

percent of the median for the area shall be eligible to

receive 33 percent of the amount calculated under paragraph (1).

(D) INCOME MORE THAN 99 PERCENT OF MEDIAN.—A

disabled family whose income is more than 99 percent

of the median for the area shall not be eligible to receive

assistance under this section.

(c) INSPECTIONS AND CONTRACT CONDITIONS.—

(1) IN GENERAL.—Each contract for the purchase of a

dwelling unit to be assisted under this section shall—

(A) provide for pre-purchase inspection of the dwelling

unit by an independent professional; and

(B) require that any cost of necessary repairs be paid

by the seller.

(2) ANNUAL INSPECTIONS NOT REQUIRED.—The requirement

under subsection (o)(8)(A)(ii) of section 8 of the United States

Housing Act of 1937 for annual inspections shall not apply

to dwelling units assisted under this section.

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

may—

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

assisted under this section;

(2) provide assistance for a disabled family for the entire

term of a mortgage for a dwelling unit if the disabled family

remains eligible for such assistance for such term; and

(3) modify the requirements of this section as the Secretary

determines to be necessary to make appropriate adaptations

for lease-purchase agreements.

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

shall remit assistance payments under this section directly to the

mortgagee of the dwelling unit purchased by the disabled family

receiving such assistance payments.

(f ) INAPPLICABILITY OF CERTAIN PROVISIONS.—Assistance under

this section shall not be subject to the requirements of the following

provisions:

(1) Subsection (c)(3)(B) of section 8 of the United States

Housing Act of 1937.

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

Housing Act of 1937.

(3) Any other provisions of section 8 of the United States

Housing Act of 1937 governing maximum amounts payable

to owners and amounts payable by assisted families.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2955

(4) Any other provisions of section 8 of the United States

Housing Act of 1937 concerning contracts between public

housing agencies and owners.

(5) Any other provisions of the United States Housing

Act of 1937 that are inconsistent with the provisions of this

section.

(g) REVERSION TO RENTAL STATUS.—

(1) NON-FHA MORTGAGES.—If a disabled family receiving

assistance under this section defaults under a mortgage not

insured under the National Housing Act, the disabled family

may not continue to receive rental assistance under section

8 of the United States Housing Act of 1937 unless it complies

with requirements established by the Secretary.

(2) ALL MORTGAGES.—A disabled family receiving assistance under this section that defaults under a mortgage may

not receive assistance under this section for occupancy of

another dwelling unit owned by one or more members of the

disabled family.

(3) EXCEPTION.—This subsection shall not apply if the Secretary determines that the disabled family receiving assistance

under this section defaulted under a mortgage due to catastrophic medical reasons or due to the impact of a federally

declared major disaster or emergency.

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

the enactment of this Act, the Secretary shall issue regulations

to implement this section. Such regulations may not prohibit any

public housing agency providing tenant-based assistance on behalf

of an eligible family under section 8 of the United States Housing

Act of 1937 from participating in the pilot program under this

section.

(i) DEFINITION OF DISABLED FAMILY.—For the purposes of this

section, the term ‘‘disabled family’’ has the meaning given the

term ‘‘person with disabilities’’ in section 811(k)(2) of the CranstonGonzalez National Affordable Housing Act (42 U.S.C. 8013(k)(2)).

SEC. 303. FUNDING FOR PILOT PROGRAMS.

(a) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated such sums as may be necessary for fiscal year

2001 for assistance in connection with the existing homeownership

pilot programs carried out under the demonstration program

authorized under section 555(b) of the Quality Housing and Work

Responsibility Act of 1998 (Public Law 105–276; 112 Stat. 2613).

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

pursuant to this section shall be used only through such

homeownership pilot programs to provide, on behalf of families

participating in such programs, amounts for downpayments in

connection with dwellings purchased by such families using assistance made available under section 8(y) of the United States Housing

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

may exceed 20 percent of the appraised value of the dwelling

purchased with assistance under such section 8(y).

(c) MATCHING REQUIREMENT.—The amount of assistance made

available under this section for any existing homeownership pilot

program may not exceed twice the amount donated from sources

other than this section for use under the program for assistance

described in subsection (b). Amounts donated from other sources

Deadline.

114 STAT. 2956 PUBLIC LAW 106–569—DEC. 27, 2000

may include amounts from State housing finance agencies and

Neighborhood Housing Services of America.

TITLE IV—PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

SEC. 401. SHORT TITLE.

This title may be cited as the ‘‘Private Mortgage Insurance

Technical Corrections and Clarification Act’’.

SEC. 402. CHANGES IN AMORTIZATION SCHEDULE.

(a) TREATMENT OF ADJUSTABLE RATE MORTGAGES.—The Homeowners Protection Act of 1998 (12 U.S.C. 4901 et seq.) is amended—

(1) in section 2—

(A) in paragraph (2)(B)(i), by striking ‘‘amortization

schedules’’ and inserting ‘‘the amortization schedule then

in effect’’;

(B) in paragraph (16)(B), by striking ‘‘amortization

schedules’’ and inserting ‘‘the amortization schedule then

in effect’’;

(C) by redesignating paragraphs (6) through (16) (as

amended by the preceding provisions of this paragraph)

as paragraphs (8) through (18), respectively; and

(D) by inserting after paragraph (5) the following new

paragraph:

‘‘(6) AMORTIZATION SCHEDULE THEN IN EFFECT.—The term

‘amortization schedule then in effect’ means, with respect to

an adjustable rate mortgage, a schedule established at the

time at which the residential mortgage transaction is consummated or, if such schedule has been changed or recalculated, is the most recent schedule under the terms of the

note or mortgage, which shows—

‘‘(A) the amount of principal and interest that is due

at regular intervals to retire the principal balance and

accrued interest over the remaining amortization period

of the loan; and

‘‘(B) the unpaid balance of the loan after each such

scheduled payment is made.’’; and

(2) in section 3(f )(1)(B)(ii), by striking ‘‘amortization schedules’’ and inserting ‘‘the amortization schedule then in effect’’.

(b) TREATMENT OF BALLOON MORTGAGES.—Paragraph (1) of

section 2 of the Homeowners Protection Act of 1998 (12 U.S.C.

4901(1)) is amended by adding at the end the following new sentence: ‘‘A residential mortgage that: (A) does not fully amortize

over the term of the obligation; and (B) contains a conditional

right to refinance or modify the unamortized principal at the maturity date of the term, shall be considered to be an adjustable

rate mortgage for purposes of this Act.’’.

(c) TREATMENT OF LOAN MODIFICATIONS.—

(1) IN GENERAL.—Section 3 of the Homeowners Protection

Act of 1998 (12 U.S.C. 4902) is amended—

(A) by redesignating subsections (d) through (f ) as

subsections (e) through (g), respectively; and

12 USC 4902.

12 USC 4901.

Private Mortgage

Insurance

Technical

Corrections and

Clarification Act.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2957

(B) by inserting after subsection (c) the following new

subsection: ‘‘(d) TREATMENT OF LOAN MODIFICATIONS.—If a mortgagor and

mortgagee (or holder of the mortgage) agree to a modification of

the terms or conditions of a loan pursuant to a residential mortgage

transaction, the cancellation date, termination date, or final termination shall be recalculated to reflect the modified terms and conditions of such loan.’’. (2) CONFORMING AMENDMENTS.—Section 4(a) of the Homeowners Protection Act of 1998 (12 U.S.C. 4903(a)) is amended— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by

striking ‘‘section 3(f )(1)’’ and inserting ‘‘section 3(g)(1)’’;

(ii) in subparagraph (A)(ii)(IV), by striking ‘‘section

3(f )’’ and inserting ‘‘section 3(g)’’; and

(iii) in subparagraph (B)(iii), by striking ‘‘section

3(f )’’ and inserting ‘‘section 3(g)’’; and

(B) in paragraph (2), by striking ‘‘section 3(f )(1)’’ and

inserting ‘‘section 3(g)(1)’’.

SEC. 403. DELETION OF AMBIGUOUS REFERENCES TO RESIDENTIAL

MORTGAGES.

(a) TERMINATION OF PRIVATE MORTGAGE INSURANCE.—Section

3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902)

is amended—

(1) in subsection (c), by inserting ‘‘on residential mortgage

transactions’’ after ‘‘imposed’’; and

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

provisions of this title)—

(A) in paragraph (1), in the matter preceding subparagraph (A), by striking ‘‘mortgage or’’;

(B) in paragraph (2), by striking ‘‘mortgage or’’; and

(C) in paragraph (3), by striking ‘‘mortgage or’’ and

inserting ‘‘residential mortgage or residential’’.

(b) DISCLOSURE REQUIREMENTS.—Section 4 of the Homeowners

Protection Act of 1998 (12 U.S.C. 4903(a)) is amended—

(1) in subsection (a)—

(A) in paragraph (1)—

(i) by striking ‘‘mortgage or’’ the first place it

appears; and

(ii) by striking ‘‘mortgage or’’ the second place it

appears and inserting ‘‘residential’’; and

(B) in paragraph (2), by striking ‘‘mortgage or’’ and

inserting ‘‘residential’’;

(2) in subsection (c), by striking ‘‘paragraphs (1)(B) and

(3) of subsection (a)’’ and inserting ‘‘subsection (a)(3)’’; and

(3) in subsection (d), by inserting before the period at

the end the following: ‘‘, which disclosures shall relate to the

mortgagor’s rights under this Act’’.

(c) DISCLOSURE REQUIREMENTS FOR LENDER-PAID MORTGAGE

INSURANCE.—Section 6 of the Homeowners Protection Act of 1998

(12 U.S.C. 4905) is amended—

(1) in subsection (c)—

(A) in the matter preceding paragraph (1), by striking

‘‘a residential mortgage or’’; and

(B) in paragraph (2), by inserting ‘‘transaction’’ after

‘‘residential mortgage’’; and

114 STAT. 2958 PUBLIC LAW 106–569—DEC. 27, 2000

(2) in subsection (d), by inserting ‘‘transaction’’ after ‘‘residential mortgage’’.

SEC. 404. CANCELLATION RIGHTS AFTER CANCELLATION DATE.

Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C.

4902) is amended—

(1) in subsection (a)—

(A) in the matter preceding paragraph (1), by inserting

after ‘‘cancellation date’’ the following: ‘‘or any later date

that the mortgagor fulfills all of the requirements under

paragraphs (1) through (4)’’;

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

(C) by redesignating paragraph (3) as paragraph (4);

and

(D) by inserting after paragraph (2) the following new

paragraph:

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

of the residential mortgage transaction; and’’; and

(2) in subsection (e)(1)(B) (as so redesignated by the preceding provisions of this title), by striking ‘‘subsection (a)(3)’’

and inserting ‘‘subsection (a)(4)’’.

SEC. 405. CLARIFICATION OF CANCELLATION AND TERMINATION

ISSUES AND LENDER PAID MORTGAGE INSURANCE

DISCLOSURE REQUIREMENTS.

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

Protection Act of 1998 (12 U.S.C. 4901(4)) is amended—

(1) in subparagraph (A)—

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

and

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

submits a request for cancellation under section 3(a)(1)’’

before the semicolon; and

(2) in subparagraph (B)—

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

and

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

submits a request for cancellation under section 3(a)(1)’’

before the period at the end.

(b) AUTOMATIC TERMINATION.—Paragraph (2) of section 3(b)

of the Homeowners Protection Act of 1998 (12 U.S.C. 4902(b)(2))

is amended to read as follows:

‘‘(2) if the mortgagor is not current on the termination

date, on the first day of the first month beginning after the

date that the mortgagor becomes current on the payments

required by the terms of the residential mortgage transaction.’’.

(c) PREMIUM PAYMENTS.—Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902) is amended by adding at the

end the following new subsection:

‘‘(h) ACCRUED OBLIGATION FOR PREMIUM PAYMENTS.—The cancellation or termination under this section of the private mortgage

insurance of a mortgagor shall not affect the rights of any mortgagee, servicer, or mortgage insurer to enforce any obligation of

such mortgagor for premium payments accrued prior to the date

on which such cancellation or termination occurred.’’.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2959

SEC. 406. DEFINITIONS.

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

Protection Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii)) is amended by

inserting after ‘‘refinanced’’ the following: ‘‘(under the meaning given

such term in the regulations issued by the Board of Governors

of the Federal Reserve System to carry out the Truth in Lending

Act (15 U.S.C. 1601 et seq.))’’.

(b) MIDPOINT OF THE AMORTIZATION PERIOD.—Section 2 of the

Homeowners Protection Act of 1998 (12 U.S.C. 4901) is amended

by inserting after paragraph (6) (as added by the preceding provisions of this title) the following new paragraph:

‘‘(7) MIDPOINT OF THE AMORTIZATION PERIOD.—The term

‘midpoint of the amortization period’ means, with respect to

a residential mortgage transaction, the point in time that is

halfway through the period that begins upon the first day

of the amortization period established at the time a residential

mortgage transaction is consummated and ends upon the

completion of the entire period over which the mortgage is

scheduled to be amortized.’’.

(c) ORIGINAL VALUE.—Section 2(12) of the Homeowners Protection Act of 1998 (12 U.S.C. 4901(10)) (as so redesignated by the

preceding provisions of this title) is amended—

(1) by inserting ‘‘transaction’’ after ‘‘a residential mortgage’’;

and

(2) by adding at the end the following new sentence: ‘‘In

the case of a residential mortgage transaction for refinancing

the principal residence of the mortgagor, such term means

only the appraised value relied upon by the mortgagee to

approve the refinance transaction.’’.

(d) PRINCIPAL RESIDENCE.—Section 2 of the Homeowners

Protection Act of 1998 (12 U.S.C. 4901) is amended—

(1) in paragraph (14) (as so redesignated by the preceding

provisions of this title) by striking ‘‘primary’’ and inserting

‘‘principal’’; and

(2) in paragraph (15) (as so redesignated by the preceding

provisions of this title) by striking ‘‘primary’’ and inserting

‘‘principal’’.

TITLE V—NATIVE AMERICAN

HOMEOWNERSHIP

Subtitle A—Native American Housing

SEC. 501. LANDS TITLE REPORT COMMISSION.

(a) ESTABLISHMENT.—Subject to sums being provided in

advance in appropriations Acts, there is established a Commission

to be known as the Lands Title Report Commission (hereafter

in this section referred to as the ‘‘Commission’’) to facilitate home

loan mortgages on Indian trust lands. The Commission will be

subject to oversight by the Committee on Banking and Financial

Services of the House of Representatives and the Committee on

Banking, Housing, and Urban Affairs of the Senate.

(b) MEMBERSHIP.—

25 USC 4043

note.

114 STAT. 2960 PUBLIC LAW 106–569—DEC. 27, 2000

(1) APPOINTMENT.—The Commission shall be composed of

12 members, appointed not later than 90 days after the date

of the enactment of this Act as follows:

(A) Four members shall be appointed by the President.

(B) Four members shall be appointed by the Chairperson of the Committee on Banking and Financial Services

of the House of Representatives.

(C) Four members shall be appointed by the Chairperson of the Committee on Banking, Housing, and Urban

Affairs of the Senate.

(2) QUALIFICATIONS.— (A) MEMBERS OF TRIBES.—At all times, not less than

eight of the members of the Commission shall be members

of federally recognized Indian tribes.

(B) EXPERIENCE IN LAND TITLE MATTERS.—All members

of the Commission shall have experience in and knowledge

of land title matters relating to Indian trust lands.

(3) CHAIRPERSON.—The Chairperson of the Commission

shall be one of the members of the Commission appointed

under paragraph (1)(C), as elected by the members of the

Commission.

(4) VACANCIES.—Any vacancy on the Commission shall not

affect its powers, but shall be filled in the manner in which

the original appointment was made.

(5) TRAVEL EXPENSES.—Members of the Commission shall

serve without pay, but each member shall receive travel

expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States

Code.

(c) INITIAL MEETING.—The Chairperson of the Commission shall

call the initial meeting of the Commission. Such meeting shall

be held within 30 days after the Chairperson of the Commission

determines that sums sufficient for the Commission to carry out

its duties under this Act have been appropriated for such purpose.

(d) DUTIES.—The Commission shall analyze the system of the

Bureau of Indian Affairs of the Department of the Interior for

maintaining land ownership records and title documents and issuing

certified title status reports relating to Indian trust lands and,

pursuant to such analysis, determine how best to improve or replace

the system—

(1) to ensure prompt and accurate responses to requests

for title status reports;

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

reports; and

(3) to ensure that the administration of the system will

not in any way impair or restrict the ability of Native Americans to obtain conventional loans for purchase of residences

located on Indian trust lands, including any actions necessary

to ensure that the system will promptly be able to meet future

demands for certified title status reports, taking into account

the anticipated complexity and volume of such requests.

(e) REPORT.—Not later than the date of the termination of

the Commission under subsection (h), the Commission shall submit

a report to the Committee on Banking and Financial Services

of the House of Representatives and the Committee on Banking,

Housing, and Urban Affairs of the Senate describing the analysis

and determinations made pursuant to subsection (d).

Deadline.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2961

(f ) POWERS.— (1) HEARINGS AND SESSIONS.—The Commission may, for

the purpose of carrying out this section, hold hearings, sit

and act at times and places, take testimony, and receive evidence as the Commission considers appropriate.

(2) STAFF OF FEDERAL AGENCIES.—Upon request of the

Commission, the head of any Federal department or agency

may detail, on a reimbursable basis, any of the personnel

of that department or agency to the Commission to assist

it in carrying out its duties under this section.

(3) OBTAINING OFFICIAL DATA.—The Commission may

secure directly from any department or agency of the United

States information necessary to enable it to carry out this

section. Upon request of the Chairperson of the Commission,

the head of that department or agency shall furnish that

information to the Commission.

(4) MAILS.—The Commission may use the United States

mails in the same manner and under the same conditions

as other departments and agencies of the United States.

(5) ADMINISTRATIVE SUPPORT SERVICES.—Upon the request

of the Commission, the Administrator of General Services shall

provide to the Commission, on a reimbursable basis, the

administrative support services necessary for the Commission

to carry out its duties under this section.

(6) STAFF.—The Commission may appoint personnel as it

considers appropriate, subject to the provisions of title 5, United

States Code, governing appointments in the competitive service,

and shall pay such personnel in accordance with the provisions

of chapter 51 and subchapter III of chapter 53 of that title

relating to classification and General Schedule pay rates.

(g) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to carry out this section such sums as may

be necessary, and any amounts appropriated pursuant to this subsection shall remain available until expended.

(h) TERMINATION.—The Commission shall terminate 1 year

after the date of the initial meeting of the Commission.

SEC. 502. LOAN GUARANTEES.

Section 184(i) of the Housing and Community Development

Act of 1992 (12 U.S.C. 1715z–13a(i)) is amended— (1) in paragraph (5), by striking subparagraph (C) and

inserting the following new subparagraph: ‘‘(C) LIMITATION ON OUTSTANDING AGGREGATE PRIN- CIPAL AMOUNT.—Subject to the limitations in subparagraphs (A) and (B), the Secretary may enter into commitments to guarantee loans under this section in each fiscal

year with an aggregate outstanding principal amount not

exceeding such amount as may be provided in appropriation

Acts for such fiscal year.’’; and

(2) in paragraph (7), by striking ‘‘each of fiscal years 1997,

1998, 1999, 2000, and 2001’’ and inserting ‘‘each fiscal year’’.

SEC. 503. NATIVE AMERICAN HOUSING ASSISTANCE.

(a) RESTRICTION ON WAIVER AUTHORITY.—

(1) IN GENERAL.—Section 101(b)(2) of the Native American

Housing Assistance and Self-Determination Act of 1996 (25

U.S.C. 4111(b)(2)) is amended by striking ‘‘if the Secretary’’

and all that follows through the period at the end and inserting

114 STAT. 2962 PUBLIC LAW 106–569—DEC. 27, 2000

the following: ‘‘for a period of not more than 90 days, if the

Secretary determines that an Indian tribe has not complied

with, or is unable to comply with, those requirements due

to exigent circumstances beyond the control of the Indian

tribe.’’.

(2) LOCAL COOPERATION AGREEMENT.—Section 101(c) of the

Native American Housing Assistance and Self-Determination

Act of 1996 (25 U.S.C. 4111(c)) is amended by adding at the

end the following: ‘‘The Secretary may waive the requirements

of this subsection and subsection (d) if the recipient has made

a good faith effort to fulfill the requirements of this subsection

and subsection (d) and agrees to make payments in lieu of

taxes to the appropriate taxing authority in an amount consistent with the requirements of subsection (d)(2) until such

time as the matter of making such payments has been resolved

in accordance with subsection (d).’’. (b) ASSISTANCE TO FAMILIES THAT ARE NOT LOW-INCOME.—

Section 102(c) of the Native American Housing Assistance and

Self-Determination Act of 1996 (25 U.S.C. 4112(c)) is amended

by adding at the end the following:

‘‘(6) CERTAIN FAMILIES.—With respect to assistance provided under section 201(b)(2) by a recipient to Indian families

that are not low-income families, evidence that there is a need

for housing for each such family during that period that cannot

reasonably be met without such assistance.’’.

(c) ELIMINATION OF WAIVER AUTHORITY FOR SMALL TRIBES.—

Section 102 of the Native American Housing Assistance and SelfDetermination Act of 1996 (25 U.S.C. 4112) is amended—

(1) by striking subsection (f ); and

(2) by redesignating subsection (g) as subsection (f ).

(d) ENVIRONMENTAL COMPLIANCE.—Section 105 of the Native

American Housing Assistance and Self-Determination Act of 1996

(25 U.S.C. 4115) is amended by adding at the end the following:

‘‘(d) ENVIRONMENTAL COMPLIANCE.—The Secretary may waive

the requirements under this section if the Secretary determines

that a failure on the part of a recipient to comply with provisions

of this section—

‘‘(1) will not frustrate the goals of the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) or any

other provision of law that furthers the goals of that Act;

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

involved by posing an immediate or long-term hazard to residents of that community;

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

or incomplete certification provided under subsection (c)(1); and

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

recipient.’’.

(e) OVERSIGHT.—

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

Housing Assistance and Self-Determination Act of 1996 (25

U.S.C. 4139) is amended to read as follows:

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

‘‘If a recipient uses grant amounts to provide affordable housing

under this title, and at any time during the useful life of the

housing the recipient does not comply with the requirement under

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2963

section 205(a)(2), the Secretary shall take appropriate action under

section 401(a).’’.

(2) AUDITS AND REVIEWS.—Section 405 of the Native American Housing Assistance and Self-Determination Act of 1996

(25 U.S.C. 4165) is amended to read as follows:

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

‘‘(a) REQUIREMENTS UNDER CHAPTER 75 OF TITLE 31, UNITED

STATES CODE.—An entity designated by an Indian tribe as a housing

entity shall be treated, for purposes of chapter 75 of title 31,

United States Code, as a non-Federal entity that is subject to

the audit requirements that apply to non-Federal entities under

that chapter.

‘‘(b) ADDITIONAL REVIEWS AND AUDITS.—

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

subsection (a), to the extent the Secretary determines such

action to be appropriate, the Secretary may conduct an audit

or review of a recipient in order to—

‘‘(A) determine whether the recipient—

‘‘(i) has carried out—

‘‘(I) eligible activities in a timely manner; and

‘‘(II) eligible activities and certification in

accordance with this Act and other applicable law;

‘‘(ii) has a continuing capacity to carry out eligible

activities in a timely manner; and

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

plan of the recipient; and

‘‘(B) verify the accuracy of information contained in

any performance report submitted by the recipient under

section 404.

‘‘(2) ON-SITE VISITS.—To the extent practicable, the reviews

and audits conducted under this subsection shall include onsite visits by the appropriate official of the Department of

Housing and Urban Development.

‘‘(c) REVIEW OF REPORTS.—

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

recipient that is the subject of a report made by the Secretary

under this section notice that the recipient may review and

comment on the report during a period of not less than 30

days after the date on which notice is issued under this paragraph.

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

any comments of the recipient under paragraph (1), the

Secretary—

‘‘(A) may revise the report; and

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

those comments are received, shall make the comments

and the report (with any revisions made under subparagraph (A)) readily available to the public.

‘‘(d) EFFECT OF REVIEWS.—Subject to section 401(a), after

reviewing the reports and audits relating to a recipient that are

submitted to the Secretary under this section, the Secretary may

adjust the amount of a grant made to a recipient under this Act

in accordance with the findings of the Secretary with respect to

those reports and audits.’’.

Deadline.

Notice.

Deadline.

114 STAT. 2964 PUBLIC LAW 106–569—DEC. 27, 2000

(f ) ALLOCATION FORMULA.—Section 302(d)(1) of the Native

American Housing Assistance and Self-Determination Act of 1996

(25 U.S.C. 4152(d)(1)) is amended—

(1) by striking ‘‘The formula,’’ and inserting the following:

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

tribe described in subparagraph (B), the formula’’; and

(2) by adding at the end the following:

‘‘(B) CERTAIN INDIAN TRIBES.—With respect to fiscal

year 2001 and each fiscal year thereafter, for any Indian

tribe with an Indian housing authority that owns or operates fewer than 250 public housing units, the formula

shall provide that if the amount provided for a fiscal year

in which the total amount made available for assistance

under this Act is equal to or greater than the amount

made available for fiscal year 1996 for assistance for the

operation and modernization of the public housing referred

to in subparagraph (A), then the amount provided to that

Indian tribe as modernization assistance shall be equal

to the average annual amount of funds provided to the

Indian tribe (other than funds provided as emergency

assistance) under the assistance program under section

14 of the United States Housing Act of 1937 (42 U.S.C.

1437l) for the period beginning with fiscal year 1992 and

ending with fiscal year 1997.’’.

(g) HEARING REQUIREMENT.—Section 401(a) of the Native American Housing Assistance and Self-Determination Act of 1996 (25

U.S.C. 4161(a)) is amended—

(1) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and realigning such subparagraphs (as so redesignated) so as to be indented 4 ems

from the left margin;

(2) by striking ‘‘Except as provided’’ and inserting the following:

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

(3) by striking ‘‘If the Secretary takes an action under

paragraph (1), (2), or (3)’’ and inserting the following:

‘‘(2) CONTINUANCE OF ACTIONS.—If the Secretary takes an

action under subparagraph (A), (B), or (C) of paragraph (1)’’;

and

(4) by adding at the end the following:

‘‘(3) EXCEPTION FOR CERTAIN ACTIONS.—

‘‘(A) IN GENERAL.—Notwithstanding any other provision of this subsection, if the Secretary makes a determination that the failure of a recipient of assistance under

this Act to comply substantially with any material provision

(as that term is defined by the Secretary) of this Act

is resulting, and would continue to result, in a continuing

expenditure of Federal funds in a manner that is not

authorized by law, the Secretary may take an action

described in paragraph (1)(C) before conducting a hearing.

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

takes an action described in subparagraph (A), the Secretary shall—

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

that the Secretary takes that action; and

Notice.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2965

‘‘(ii) conduct a hearing not later than 60 days after

the date on which the Secretary provides notice under

clause (i).

‘‘(C) DETERMINATION.—Upon completion of a hearing

under this paragraph, the Secretary shall make a determination regarding whether to continue taking the action

that is the subject of the hearing, or take another action

under this subsection.’’. (h) PERFORMANCE AGREEMENT TIME LIMIT.—Section 401(b) of

the Native American Housing Assistance and Self-Determination

Act of 1996 (25 U.S.C. 4161(b)) is amended— (1) by striking ‘‘If the Secretary’’ and inserting the following: ‘‘(1) IN GENERAL.—If the Secretary’’;

(2) by striking ‘‘(1) is not’’ and inserting the following: ‘‘(A) is not’’;

(3) by striking ‘‘(2) is a result’’ and inserting the following: ‘‘(B) is a result’’;

(4) in the flush material following paragraph (1)(B), as

redesignated by paragraph (3) of this subsection— (A) by realigning such material so as to be indented

2 ems from the left margin; and

(B) by inserting before the period at the end the following: ‘‘, if the recipient enters into a performance agreement with the Secretary that specifies the compliance objectives that the recipient will be required to achieve by

the termination date of the performance agreement’’; and

(5) by adding at the end the following:

‘‘(2) PERFORMANCE AGREEMENT.—The period of a performance agreement described in paragraph (1) shall be for 1 year.

‘‘(3) REVIEW.—Upon the termination of a performance

agreement entered into under paragraph (1), the Secretary

shall review the performance of the recipient that is a party

to the agreement.

‘‘(4) EFFECT OF REVIEW.—If, on the basis of a review under

paragraph (3), the Secretary determines that the recipient—

‘‘(A) has made a good faith effort to meet the compliance objectives specified in the agreement, the Secretary

may enter into an additional performance agreement for

the period specified in paragraph (2); and

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

applicable compliance objectives, the Secretary shall determine the recipient to have failed to comply substantially

with this Act, and the recipient shall be subject to an

action under subsection (a).’’.

(i) LABOR STANDARDS.—Section 104(b) of the Native American

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

4114(b)) is amended—

(1) in paragraph (1), by striking ‘‘Davis-Bacon Act (40

U.S.C. 276a–276a–5)’’ and inserting ‘‘Act of March 3, 1931

(commonly known as the Davis-Bacon Act; chapter 411; 46

Stat. 1494; 40 U.S.C. 276a et seq.)’’; and

(2) by adding at the end the following new paragraph:

‘‘(3) APPLICATION OF TRIBAL LAWS.—Paragraph (1) shall

not apply to any contract or agreement for assistance, sale,

or lease pursuant to this Act, if such contract or agreement

is otherwise covered by one or more laws or regulations adopted

Deadline.

114 STAT. 2966 PUBLIC LAW 106–569—DEC. 27, 2000

by an Indian tribe that requires the payment of not less than

prevailing wages, as determined by the Indian tribe.’’. ( j) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) TABLE OF CONTENTS.—Section 1(b) of the Native American Housing Assistance and Self-Determination Act of 1996

(25 U.S.C. 4101 note) is amended in the table of contents— (A) by striking the item relating to section 206; and

(B) by striking the item relating to section 209 and

inserting the following:

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

(2) CERTIFICATION OF COMPLIANCE WITH SUBSIDY LAYERING

REQUIREMENTS.—Section 206 of the Native American Housing

Assistance and Self-Determination Act of 1996 (25 U.S.C. 4136)

is repealed.

(3) TERMINATIONS.—Section 502(a) of the Native American

Housing Assistance and Self-Determination Act of 1996 (25

U.S.C. 4181(a)) is amended by adding at the end the following:

‘‘Any housing that is the subject of a contract for tenantbased assistance between the Secretary and an Indian housing

authority that is terminated under this section shall, for the

following fiscal year and each fiscal year thereafter, be considered to be a dwelling unit under section 302(b)(1).’’.

Subtitle B—Native Hawaiian Housing

SEC. 511. SHORT TITLE.

This subtitle may be cited as the ‘‘Hawaiian Homelands

Homeownership Act of 2000’’.

SEC. 512. FINDINGS.

The Congress finds that—

(1) the United States has undertaken a responsibility to

promote the general welfare of the United States by— (A) employing its resources to remedy the unsafe and

unsanitary housing conditions and the acute shortage of

decent, safe, and sanitary dwellings for families of lower

income; and

(B) developing effective partnerships with governmental and private entities to accomplish the objectives

referred to in subparagraph (A);

(2) the United States has a special responsibility for the

welfare of the Native peoples of the United States, including

Native Hawaiians;

(3) pursuant to the provisions of the Hawaiian Homes

Commission Act, 1920 (42 Stat. 108 et seq.), the United States

set aside 200,000 acres of land in the Federal territory that

later became the State of Hawaii in order to establish a homeland for the native people of Hawaii—Native Hawaiians;

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

housing needs of Native Hawaiians through the enactment

of the Hawaiian Homes Commission Act, 1920 (42 Stat. 108

et seq.), Native Hawaiians eligible to reside on the Hawaiian

home lands have been foreclosed from participating in Federal

housing assistance programs available to all other eligible families in the United States;

25 USC 4221

note.

25 USC 4101

note.

Hawaiian

Homelands

Homeownership

Act of 2000.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2967

(5) although Federal housing assistance programs have

been administered on a racially neutral basis in the State

of Hawaii, Native Hawaiians continue to have the greatest

unmet need for housing and the highest rates of overcrowding

in the United States;

(6) among the Native American population of the United

States, Native Hawaiians experience the highest percentage

of housing problems in the United States, as the percentage—

(A) of housing problems in the Native Hawaiian population is 49 percent, as compared to—

(i) 44 percent for American Indian and Alaska

Native households in Indian country; and

(ii) 27 percent for all other households in the

United States; and

(B) overcrowding in the Native Hawaiian population

is 36 percent as compared to 3 percent for all other households in the United States;

(7) among the Native Hawaiian population, the needs of

Native Hawaiians, as that term is defined in section 801 of

the Native American Housing Assistance and Self-Determination Act of 1996 (as added by this subtitle), eligible to reside

on the Hawaiian Home Lands are the most severe, as—

(A) the percentage of overcrowding in Native Hawaiian

households on the Hawaiian Home Lands is 36 percent;

and

(B) approximately 13,000 Native Hawaiians, which constitute 95 percent of the Native Hawaiians who are eligible

to reside on the Hawaiian Home Lands, are in need of

housing;

(8) applying the Department of Housing and Urban

Development guidelines—

(A) 70.8 percent of Native Hawaiians who either reside

or who are eligible to reside on the Hawaiian Home Lands

have incomes that fall below the median family income;

and

(B) 50 percent of Native Hawaiians who either reside

or who are eligible to reside on the Hawaiian Home Lands

have incomes below 30 percent of the median family

income;

(9) one-third of those Native Hawaiians who are eligible

to reside on the Hawaiian Home Lands pay more than 30

percent of their income for shelter, and one-half of those Native

Hawaiians face overcrowding;

(10) the extraordinarily severe housing needs of Native

Hawaiians demonstrate that Native Hawaiians who either

reside on, or are eligible to reside on, Hawaiian Home Lands

have been denied equal access to Federal low-income housing

assistance programs available to other qualified residents of

the United States, and that a more effective means of

addressing their housing needs must be authorized;

(11) consistent with the recommendations of the National

Commission on American Indian, Alaska Native, and Native

Hawaiian Housing, and in order to address the continuing

prevalence of extraordinarily severe housing needs among

Native Hawaiians who either reside or are eligible to reside

on the Hawaiian Home Lands, Congress finds it necessary

to extend the Federal low-income housing assistance available

114 STAT. 2968 PUBLIC LAW 106–569—DEC. 27, 2000

to American Indians and Alaska Natives under the Native

American Housing Assistance and Self-Determination Act of

1996 (25 U.S.C. 4101 et seq.) to those Native Hawaiians;

(12) under the treatymaking power of the United States,

Congress had the constitutional authority to confirm a treaty

between the United States and the government that represented the Hawaiian people, and from 1826 until 1893, the

United States recognized the independence of the Kingdom

of Hawaii, extended full diplomatic recognition to the Hawaiian

Government, and entered into treaties and conventions with

the Hawaiian monarchs to govern commerce and navigation

in 1826, 1842, 1849, 1875, and 1887;

(13) the United States has recognized and reaffirmed that—

(A) Native Hawaiians have a cultural, historic, and

land-based link to the indigenous people who exercised

sovereignty over the Hawaiian Islands, and that group

has never relinquished its claims to sovereignty or its sovereign lands;

(B) Congress does not extend services to Native Hawaiians because of their race, but because of their unique

status as the indigenous people of a once sovereign nation

as to whom the United States has established a trust

relationship;

(C) Congress has also delegated broad authority to

administer a portion of the Federal trust responsibility

to the State of Hawaii;

(D) the political status of Native Hawaiians is comparable to that of American Indians and Alaska Natives;

and

(E) the aboriginal, indigenous people of the United

States have—

(i) a continuing right to autonomy in their internal

affairs; and

(ii) an ongoing right of self-determination and selfgovernance that has never been extinguished;

(14) the political relationship between the United States

and the Native Hawaiian people has been recognized and reaffirmed by the United States as evidenced by the inclusion

of Native Hawaiians in—

(A) the Native American Programs Act of 1974 (42

U.S.C. 2291 et seq.);

(B) the American Indian Religious Freedom Act (42

U.S.C. 1996 et seq.);

(C) the National Museum of the American Indian Act

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

(D) the Native American Graves Protection and Repatriation Act (25 U.S.C. 3001 et seq.);

(E) the National Historic Preservation Act (16 U.S.C.

470 et seq.);

(F) the Native American Languages Act of 1992 (106

Stat. 3434);

(G) the American Indian, Alaska Native and Native

Hawaiian Culture and Arts Development Act (20 U.S.C.

4401 et seq.);

(H) the Job Training Partnership Act (29 U.S.C. 1501

et seq.); and

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2969

(I) the Older Americans Act of 1965 (42 U.S.C. 3001

et seq.); and

(15) in the area of housing, the United States has recognized and reaffirmed the political relationship with the Native

Hawaiian people through—

(A) the enactment of the Hawaiian Homes Commission

Act, 1920 (42 Stat. 108 et seq.), which set aside approximately 200,000 acres of public lands that became known

as Hawaiian Home Lands in the Territory of Hawaii that

had been ceded to the United States for homesteading

by Native Hawaiians in order to rehabilitate a landless

and dying people;

(B) the enactment of the Act entitled ‘‘An Act to provide

for the admission of the State of Hawaii into the Union’’,

approved March 18, 1959 (73 Stat. 4)—

(i) by ceding to the State of Hawaii title to the

public lands formerly held by the United States, and

mandating that those lands be held in public trust,

for the betterment of the conditions of Native Hawaiians, as that term is defined in section 201 of the

Hawaiian Homes Commission Act, 1920 (42 Stat. 108

et seq.); and

(ii) by transferring the United States responsibility

for the administration of Hawaiian Home Lands to

the State of Hawaii, but retaining the authority to

enforce the trust, including the exclusive right of the

United States to consent to any actions affecting the

lands which comprise the corpus of the trust and any

amendments to the Hawaiian Homes Commission Act,

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

of the State of Hawaii affecting the rights of beneficiaries under the Act;

(C) the authorization of mortgage loans insured by

the Federal Housing Administration for the purchase,

construction, or refinancing of homes on Hawaiian Home

Lands under the National Housing Act (Public Law 479;

73d Congress; 12 U.S.C. 1701 et seq.);

(D) authorizing Native Hawaiian representation on the

National Commission on American Indian, Alaska Native,

and Native Hawaiian Housing under Public Law 101–235;

(E) the inclusion of Native Hawaiians in the definition

under section 3764 of title 38, United States Code,

applicable to subchapter V of chapter 37 of title 38, United

States Code (relating to a housing loan program for Native

American veterans); and

(F) the enactment of the Hawaiian Home Lands

Recovery Act (109 Stat. 357; 48 U.S.C. 491, note prec.)

which establishes a process for the conveyance of Federal

lands to the Department of Hawaiian Homes Lands that

are equivalent in value to lands acquired by the United

States from the Hawaiian Home Lands inventory.

SEC. 513. HOUSING ASSISTANCE.

The Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.) is amended by adding

at the end the following:

114 STAT. 2970 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘TITLE VIII—HOUSING ASSISTANCE FOR

NATIVE HAWAIIANS

‘‘SEC. 801. DEFINITIONS.

‘‘In this title: ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS; DEPART- MENT.—The term ‘Department of Hawaiian Home Lands’ or ‘Department’ means the agency or department of the government of the State of Hawaii that is responsible for the administration of the Hawaiian Homes Commission Act, 1920 (42 Stat.

108 et seq.). ‘‘(2) DIRECTOR.—The term ‘Director’ means the Director

of the Department of Hawaiian Home Lands. ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMILIES.— ‘‘(A) IN GENERAL.—The term ‘elderly family’ or ‘nearelderly family’ means a family whose head (or his or her

spouse), or whose sole member, is— ‘‘(i) for an elderly family, an elderly person; or

‘‘(ii) for a near-elderly family, a near-elderly person.

‘‘(B) CERTAIN FAMILIES INCLUDED.—The term ‘elderly

family’ or ‘near-elderly family’ includes— ‘‘(i) two or more elderly persons or near-elderly

persons, as the case may be, living together; and ‘‘(ii) one or more persons described in clause (i)

living with one or more persons determined under

the housing plan to be essential to their care or wellbeing. ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Hawaiian Home

Lands’ means lands that— ‘‘(A) have the status as Hawaiian home lands under

section 204 of the Hawaiian Homes Commission Act, 1920

(42 Stat. 110); or ‘‘(B) are acquired pursuant to that Act. ‘‘(5) HOUSING AREA.—The term ‘housing area’ means an

area of Hawaiian Home Lands with respect to which the

Department of Hawaiian Home Lands is authorized to provide

assistance for affordable housing under this Act. ‘‘(6) HOUSING ENTITY.—The term ‘housing entity’ means

the Department of Hawaiian Home Lands. ‘‘(7) HOUSING PLAN.—The term ‘housing plan’ means a plan

developed by the Department of Hawaiian Home Lands. ‘‘(8) MEDIAN INCOME.—The term ‘median income’ means,

with respect to an area that is a Hawaiian housing area,

the greater of— ‘‘(A) the median income for the Hawaiian housing area,

which shall be determined by the Secretary; or ‘‘(B) the median income for the State of Hawaii. ‘‘(9) NATIVE HAWAIIAN.—The term ‘Native Hawaiian’ means

any individual who is— ‘‘(A) a citizen of the United States; and

‘‘(B) a descendant of the aboriginal people, who, prior

to 1778, occupied and exercised sovereignty in the area

that currently constitutes the State of Hawaii, as evidenced

by—

‘‘(i) genealogical records;

25 USC 4221.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2971

‘‘(ii) verification by kupuna (elders) or kama’aina

(long-term community residents); or ‘‘(iii) birth records of the State of Hawaii.

‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING ACTIVITIES.

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

shall (to the extent amounts are made available to carry out this

title) make a grant under this title to the Department of Hawaiian

Home Lands to carry out affordable housing activities for Native

Hawaiian families who are eligible to reside on the Hawaiian Home

Lands. ‘‘(b) PLAN REQUIREMENT.— ‘‘(1) IN GENERAL.—The Secretary may make a grant under

this title to the Department of Hawaiian Home Lands for

a fiscal year only if— ‘‘(A) the Director has submitted to the Secretary a

housing plan for that fiscal year; and ‘‘(B) the Secretary has determined under section 804

that the housing plan complies with the requirements of

section 803.

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

of the requirements under paragraph (1), in part, if the Secretary finds that the Department of Hawaiian Home Lands

has not complied or cannot comply with those requirements

due to circumstances beyond the control of the Department

of Hawaiian Home Lands.

‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES UNDER PLAN.— Except as provided in subsection (e), amounts provided under a

grant under this section may be used only for affordable housing

activities under this title that are consistent with a housing plan

approved under section 804. ‘‘(d) ADMINISTRATIVE EXPENSES.— ‘‘(1) IN GENERAL.—The Secretary shall, by regulation,

authorize the Department of Hawaiian Home Lands to use

a percentage of any grant amounts received under this title

for any reasonable administrative and planning expenses of

the Department relating to carrying out this title and activities

assisted with those amounts. ‘‘(2) ADMINISTRATIVE AND PLANNING EXPENSES.—The

administrative and planning expenses referred to in paragraph

(1) include—

‘‘(A) costs for salaries of individuals engaged in administering and managing affordable housing activities

assisted with grant amounts provided under this title; and ‘‘(B) expenses incurred in preparing a housing plan

under section 803. ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Director shall make

all reasonable efforts, consistent with the purposes of this title,

to maximize participation by the private sector, including nonprofit

organizations and for-profit entities, in implementing a housing

plan that has been approved by the Secretary under section 803.

‘‘SEC. 803. HOUSING PLAN.

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

‘‘(1) require the Director to submit a housing plan under

this section for each fiscal year; and

‘‘(2) provide for the review of each plan submitted under

paragraph (1).

25 USC 4223.

Regulations.

25 USC 4222.

114 STAT. 2972 PUBLIC LAW 106–569—DEC. 27, 2000

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

shall—

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

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

with the fiscal year for which the plan is submitted, the following information:

‘‘(A) MISSION STATEMENT.—A general statement of the

mission of the Department of Hawaiian Home Lands to

serve the needs of the low-income families to be served

by the Department.

‘‘(B) GOALS AND OBJECTIVES.—A statement of the goals

and objectives of the Department of Hawaiian Home Lands

to enable the Department to serve the needs identified

in subparagraph (A) during the period.

‘‘(C) ACTIVITIES PLANS.—An overview of the activities

planned during the period including an analysis of the

manner in which the activities will enable the Department

to meet its mission, goals, and objectives.

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

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

‘‘(2) contain the following information relating to the fiscal

year for which the assistance under this title is to be made

available:

‘‘(A) GOALS AND OBJECTIVES.—A statement of the goals

and objectives to be accomplished during the period covered

by the plan.

‘‘(B) STATEMENT OF NEEDS.—A statement of the

housing needs of the low-income families served by the

Department and the means by which those needs will

be addressed during the period covered by the plan,

including—

‘‘(i) a description of the estimated housing needs

and the need for assistance for the low-income families

to be served by the Department, including a description

of the manner in which the geographical distribution

of assistance is consistent with—

‘‘(I) the geographical needs of those families;

and

‘‘(II) needs for various categories of housing

assistance; and

‘‘(ii) a description of the estimated housing needs

for all families to be served by the Department.

‘‘(C) FINANCIAL RESOURCES.—An operating budget for

the Department of Hawaiian Home Lands, in a form prescribed by the Secretary, that includes—

‘‘(i) an identification and a description of the financial resources reasonably available to the Department

to carry out the purposes of this title, including an

explanation of the manner in which amounts made

available will be used to leverage additional resources;

and

‘‘(ii) the uses to which the resources described in

clause (i) will be committed, including—

‘‘(I) eligible and required affordable housing

activities; and

‘‘(II) administrative expenses.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2973

‘‘(D) AFFORDABLE HOUSING RESOURCES.—A statement

of the affordable housing resources currently available at

the time of the submittal of the plan and to be made

available during the period covered by the plan, including—

‘‘(i) a description of the significant characteristics

of the housing market in the State of Hawaii, including

the availability of housing from other public sources,

private market housing;

‘‘(ii) the manner in which the characteristics

referred to in clause (i) influence the decision of the

Department of Hawaiian Home Lands to use grant

amounts to be provided under this title for—

‘‘(I) rental assistance;

‘‘(II) the production of new units;

‘‘(III) the acquisition of existing units; or

‘‘(IV) the rehabilitation of units;

‘‘(iii) a description of the structure, coordination,

and means of cooperation between the Department

of Hawaiian Home Lands and any other governmental

entities in the development, submission, or

implementation of housing plans, including a description of—

‘‘(I) the involvement of private, public, and

nonprofit organizations and institutions;

‘‘(II) the use of loan guarantees under section

184A of the Housing and Community Development

Act of 1992; and

‘‘(III) other housing assistance provided by the

United States, including loans, grants, and mortgage insurance;

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

plan will address the needs identified pursuant to

subparagraph (C);

‘‘(v) a description of—

‘‘(I) any existing or anticipated homeownership

programs and rental programs to be carried out

during the period covered by the plan; and

‘‘(II) the requirements and assistance available

under the programs referred to in subclause (I);

‘‘(vi) a description of—

‘‘(I) any existing or anticipated housing

rehabilitation programs necessary to ensure the

long-term viability of the housing to be carried

out during the period covered by the plan; and

‘‘(II) the requirements and assistance available

under the programs referred to in subclause (I);

‘‘(vii) a description of—

‘‘(I) all other existing or anticipated housing

assistance provided by the Department of

Hawaiian Home Lands during the period covered

by the plan, including—

‘‘(aa) transitional housing;

‘‘(bb) homeless housing;

‘‘(cc) college housing; and

‘‘(dd) supportive services housing; and

‘‘(II) the requirements and assistance available

under such programs;

114 STAT. 2974 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(viii)(I) a description of any housing to be demolished or disposed of; ‘‘(II) a timetable for that demolition or disposition;

and

‘‘(III) any other information required by the Secretary with respect to that demolition or disposition;

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

Department of Hawaiian Home Lands will coordinate

with welfare agencies in the State of Hawaii to ensure

that residents of the affordable housing will be provided with access to resources to assist in obtaining

employment and achieving self-sufficiency;

‘‘(x) a description of the requirements established

by the Department of Hawaiian Home Lands to—

‘‘(I) promote the safety of residents of the

affordable housing;

‘‘(II) facilitate the undertaking of crime

prevention measures;

‘‘(III) allow resident input and involvement,

including the establishment of resident organizations; and

‘‘(IV) allow for the coordination of crime

prevention activities between the Department and

local law enforcement officials; and

‘‘(xi) a description of the entities that will carry

out the activities under the plan, including the

organizational capacity and key personnel of the entities.

‘‘(E) CERTIFICATION OF COMPLIANCE.—Evidence of

compliance that shall include, as appropriate—

‘‘(i) a certification that the Department of

Hawaiian Home Lands will comply with—

‘‘(I) title VI of the Civil Rights Act of 1964

(42 U.S.C. 2000d et seq.) or with the Fair Housing

Act (42 U.S.C. 3601 et seq.) in carrying out this

title, to the extent that such title is applicable;

and

‘‘(II) other applicable Federal statutes;

‘‘(ii) a certification that the Department will

require adequate insurance coverage for housing units

that are owned and operated or assisted with grant

amounts provided under this title, in compliance with

such requirements as may be established by the Secretary;

‘‘(iii) a certification that policies are in effect and

are available for review by the Secretary and the public

governing the eligibility, admission, and occupancy of

families for housing assisted with grant amounts provided under this title;

‘‘(iv) a certification that policies are in effect and

are available for review by the Secretary and the public

governing rents charged, including the methods by

which such rents or homebuyer payments are determined, for housing assisted with grant amounts provided under this title; and

‘‘(v) a certification that policies are in effect and

are available for review by the Secretary and the public

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2975

governing the management and maintenance of

housing assisted with grant amounts provided under

this title. ‘‘(d) APPLICABILITY OF CIVIL RIGHTS STATUTES.— ‘‘(1) IN GENERAL.—To the extent that the requirements

of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d

et seq.) or of the Fair Housing Act (42 U.S.C. 3601 et seq.)

apply to assistance provided under this title, nothing in the

requirements concerning discrimination on the basis of race

shall be construed to prevent the provision of assistance under

this title—

‘‘(A) to the Department of Hawaiian Home Lands on

the basis that the Department served Native Hawaiians;

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

is a Native Hawaiian family.

‘‘(2) CIVIL RIGHTS.—Program eligibility under this title may

be restricted to Native Hawaiians. Subject to the preceding

sentence, no person may be discriminated against on the basis

of race, color, national origin, religion, sex, familial status,

or disability.

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

receiving grant amounts under this title, the Department of

Hawaiian Home Lands shall, to the extent practicable, provide

for private nonprofit organizations experienced in the planning

and development of affordable housing for Native Hawaiians to

carry out affordable housing activities with those grant amounts.

‘‘SEC. 804. REVIEW OF PLANS.

‘‘(a) REVIEW AND NOTICE.—

‘‘(1) REVIEW.—

‘‘(A) IN GENERAL.—The Secretary shall conduct a

review of a housing plan submitted to the Secretary under

section 803 to ensure that the plan complies with the

requirements of that section. ‘‘(B) LIMITATION.—The Secretary shall have the discretion to review a plan referred to in subparagraph (A) only

to the extent that the Secretary considers that the review

is necessary.

‘‘(2) NOTICE.—

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

receiving a plan under section 803, the Secretary shall

notify the Director of the Department of Hawaiian Home

Lands whether the plan complies with the requirements

under that section.

‘‘(B) EFFECT OF FAILURE OF SECRETARY TO TAKE

ACTION.—For purposes of this title, if the Secretary does

not notify the Director, as required under this subsection

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

described in subparagraph (A)—

‘‘(i) the plan shall be considered to have been determined to comply with the requirements under section

803; and

‘‘(ii) the Director shall be considered to have been

notified of compliance.

‘‘(b) NOTICE OF REASONS FOR DETERMINATION OF NONCOMPLI- ANCE.—If the Secretary determines that a plan submitted under

Deadline.

25 USC 4224.

114 STAT. 2976 PUBLIC LAW 106–569—DEC. 27, 2000

section 803 does not comply with the requirements of that section,

the Secretary shall specify in the notice under subsection (a)—

‘‘(1) the reasons for noncompliance; and

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

requirements of section 803.

‘‘(c) REVIEW.—

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

of Hawaiian Home Lands submits a housing plan under section

803, or any amendment or modification to the plan to the

Secretary, to the extent that the Secretary considers such action

to be necessary to make a determination under this subsection,

the Secretary shall review the plan (including any amendments

or modifications thereto) to determine whether the contents

of the plan—

‘‘(A) set forth the information required by section 803

to be contained in the housing plan;

‘‘(B) are consistent with information and data available

to the Secretary; and

‘‘(C) are not prohibited by or inconsistent with any

provision of this Act or any other applicable law.

‘‘(2) INCOMPLETE PLANS.—If the Secretary determines under

this subsection that any of the appropriate certifications

required under section 803(c)(2)(E) are not included in a plan,

the plan shall be considered to be incomplete.

‘‘(d) UPDATES TO PLAN.—

‘‘(1) IN GENERAL.—Subject to paragraph (2), after a plan

under section 803 has been submitted for a fiscal year, the

Director of the Department of Hawaiian Home Lands may

comply with the provisions of that section for any succeeding

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

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

section 803(c)) by submitting only such information regarding

such changes as may be necessary to update the plan previously

submitted.

‘‘(2) COMPLETE PLANS.—The Director shall submit a complete plan under section 803 not later than 4 years after submitting an initial plan under that section, and not less frequently

than every 4 years thereafter.

‘‘(e) EFFECTIVE DATE.—This section and section 803 shall take

effect on the date provided by the Secretary pursuant to section

807(a) to provide for timely submission and review of the housing

plan as necessary for the provision of assistance under this title

for fiscal year 2001.

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

‘‘(a) PROGRAM INCOME.—

‘‘(1) AUTHORITY TO RETAIN.—The Department of Hawaiian

Home Lands may retain any program income that is realized

from any grant amounts received by the Department under

this title if—

‘‘(A) that income was realized after the initial disbursement of the grant amounts received by the Department;

and

‘‘(B) the Director agrees to use the program income

for affordable housing activities in accordance with the

provisions of this title.

25 USC 4225.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2977

‘‘(2) PROHIBITION OF REDUCTION OF GRANT.—The Secretary

may not reduce the grant amount for the Department of

Hawaiian Home Lands based solely on— ‘‘(A) whether the Department retains program income

under paragraph (1); or

‘‘(B) the amount of any such program income retained.

‘‘(3) EXCLUSION OF AMOUNTS.—The Secretary may, by regulation, exclude from consideration as program income any

amounts determined to be so small that compliance with the

requirements of this subsection would create an unreasonable

administrative burden on the Department.

‘‘(b) LABOR STANDARDS.— ‘‘(1) IN GENERAL.—Any contract or agreement for assistance, sale, or lease pursuant to this title shall contain— ‘‘(A) a provision requiring that an amount not less

than the wages prevailing in the locality, as determined

or adopted (subsequent to a determination under applicable

State or local law) by the Secretary, shall be paid to all

architects, technical engineers, draftsmen, technicians

employed in the development and all maintenance, and

laborers and mechanics employed in the operation, of the

affordable housing project involved; and ‘‘(B) a provision that an amount not less than the

wages prevailing in the locality, as predetermined by the

Secretary of Labor pursuant to the Act commonly known

as the ‘Davis-Bacon Act’ (46 Stat. 1494; chapter 411; 40

U.S.C. 276a et seq.) shall be paid to all laborers and

mechanics employed in the development of the affordable

housing involved.

‘‘(2) EXCEPTIONS.—Paragraph (1) and provisions relating

to wages required under paragraph (1) in any contract or agreement for assistance, sale, or lease under this title, shall not

apply to any individual who performs the services for which

the individual volunteered and who is not otherwise employed

at any time in the construction work and received no compensation or is paid expenses, reasonable benefits, or a nominal

fee for those services.

‘‘SEC. 806. ENVIRONMENTAL REVIEW.

‘‘(a) IN GENERAL.—

‘‘(1) RELEASE OF FUNDS.—

‘‘(A) IN GENERAL.—The Secretary may carry out the

alternative environmental protection procedures described

in subparagraph (B) in order to ensure—

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

Policy Act of 1969 (42 U.S.C. 4321 et seq.) and other

provisions of law that further the purposes of such

Act (as specified in regulations issued by the Secretary)

are most effectively implemented in connection with

the expenditure of grant amounts provided under this

title; and

‘‘(ii) to the public undiminished protection of the

environment.

‘‘(B) ALTERNATIVE ENVIRONMENTAL PROTECTION PROCEDURE.—In lieu of applying environmental protection procedures otherwise applicable, the Secretary may by regulation

provide for the release of funds for specific projects to

25 USC 4226.

114 STAT. 2978 PUBLIC LAW 106–569—DEC. 27, 2000

the Department of Hawaiian Home Lands if the Director

of the Department assumes all of the responsibilities for

environmental review, decisionmaking, and action under

the National Environmental Policy Act of 1969 (42 U.S.C.

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

regulations of the Secretary specify, that would apply to

the Secretary were the Secretary to undertake those

projects as Federal projects.

‘‘(2) REGULATIONS.—

‘‘(A) IN GENERAL.—The Secretary shall issue regulations to carry out this section only after consultation with

the Council on Environmental Quality.

‘‘(B) CONTENTS.—The regulations issued under this

paragraph shall—

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

reviews performed under this section;

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

training for the performance of such reviews; and

‘‘(iii) provide for the suspension or termination of

the assumption of responsibilities under this section.

‘‘(3) EFFECT ON ASSUMED RESPONSIBILITY.—The duty of the

Secretary under paragraph (2)(B) shall not be construed to

limit or reduce any responsibility assumed by the Department

of Hawaiian Home Lands for grant amounts with respect to

any specific release of funds.

‘‘(b) PROCEDURE.—

‘‘(1) IN GENERAL.—The Secretary shall authorize the release

of funds subject to the procedures under this section only if,

not less than 15 days before that approval and before any

commitment of funds to such projects, the Director of the

Department of Hawaiian Home Lands submits to the Secretary

a request for such release accompanied by a certification that

meets the requirements of subsection (c).

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

of a certification described in paragraph (1) shall be deemed

to satisfy the responsibilities of the Secretary under the

National Environmental Policy Act of 1969 (42 U.S.C. 4321

et seq.) and such other provisions of law as the regulations

of the Secretary specify to the extent that those responsibilities

relate to the releases of funds for projects that are covered

by that certification.

‘‘(c) CERTIFICATION.—A certification under the procedures under

this section shall—

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

‘‘(2) be executed by the Director of the Department of

Hawaiian Home Lands;

‘‘(3) specify that the Department of Hawaiian Home Lands

has fully carried out its responsibilities as described under

subsection (a); and

‘‘(4) specify that the Director—

‘‘(A) consents to assume the status of a responsible

Federal official under the National Environmental Policy

Act of 1969 (42 U.S.C. 4321 et seq.) and each provision

of law specified in regulations issued by the Secretary

to the extent that those laws apply by reason of subsection

(a); and

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2979

‘‘(B) is authorized and consents on behalf of the Department of Hawaiian Home Lands and the Director to accept

the jurisdiction of the Federal courts for the purpose of

enforcement of the responsibilities of the Director of the

Department of Hawaiian Home Lands as such an official.

‘‘SEC. 807. REGULATIONS.

‘‘The Secretary shall issue final regulations necessary to carry

out this title not later than October 1, 2001.

‘‘SEC. 808. EFFECTIVE DATE.

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

shall take effect on the date of the enactment of the American

Homeownership and Economic Opportunity Act of 2000.

‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMILIES.—

‘‘(1) PRIMARY OBJECTIVE.—The national objectives of this

title are—

‘‘(A) to assist and promote affordable housing activities

to develop, maintain, and operate affordable housing in

safe and healthy environments for occupancy by low-income

Native Hawaiian families;

‘‘(B) to ensure better access to private mortgage markets and to promote self-sufficiency of low-income Native

Hawaiian families;

‘‘(C) to coordinate activities to provide housing for lowincome Native Hawaiian families with Federal, State, and

local activities to further economic and community development;

‘‘(D) to plan for and integrate infrastructure resources

on the Hawaiian Home Lands with housing development;

and

‘‘(E) to—

‘‘(i) promote the development of private capital

markets; and

‘‘(ii) allow the markets referred to in clause (i)

to operate and grow, thereby benefiting Native

Hawaiian communities.

‘‘(2) ELIGIBLE FAMILIES.—

‘‘(A) IN GENERAL.—Except as provided under subparagraph (B), assistance for eligible housing activities under

this title shall be limited to low-income Native Hawaiian

families.

‘‘(B) EXCEPTION TO LOW-INCOME REQUIREMENT.—

‘‘(i) IN GENERAL.—The Director may provide assistance for homeownership activities under—

‘‘(I) section 810(b);

‘‘(II) model activities under section 810(f ); or

‘‘(III) loan guarantee activities under section

184A of the Housing and Community Development

Act of 1992 to Native Hawaiian families who are

not low-income families, to the extent that the

Secretary approves the activities under that section to address a need for housing for those families that cannot be reasonably met without that

assistance.

25 USC 4228.

25 USC 4221

note.

25 USC 4227.

114 STAT. 2980 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(ii) LIMITATIONS.—The Secretary shall establish

limitations on the amount of assistance that may be

provided under this title for activities for families that

are not low-income families.

‘‘(C) OTHER FAMILIES.—Notwithstanding paragraph (1),

the Director may provide housing or housing assistance

provided through affordable housing activities assisted with

grant amounts under this title to a family that is not

composed of Native Hawaiians if—

‘‘(i) the Department determines that the presence

of the family in the housing involved is essential to

the well-being of Native Hawaiian families; and

‘‘(ii) the need for housing for the family cannot

be reasonably met without the assistance.

‘‘(D) PREFERENCE.—

‘‘(i) IN GENERAL.—A housing plan submitted under

section 803 may authorize a preference, for housing

or housing assistance provided through affordable

housing activities assisted with grant amounts provided under this title to be provided, to the extent

practicable, to families that are eligible to reside on

the Hawaiian Home Lands.

‘‘(ii) APPLICATION.—In any case in which a housing

plan provides for preference described in clause (i),

the Director shall ensure that housing activities that

are assisted with grant amounts under this title are

subject to that preference.

‘‘(E) USE OF NONPROFIT ORGANIZATIONS.—As a condition of receiving grant amounts under this title, the Department of Hawaiian Home Lands, shall to the extent practicable, provide for private nonprofit organizations experienced in the planning and development of affordable

housing for Native Hawaiians to carry out affordable

housing activities with those grant amounts.

‘‘SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

‘‘(a) IN GENERAL.—Affordable housing activities under this section are activities conducted in accordance with the requirements

of section 811 to—

‘‘(1) develop or to support affordable housing for rental

or homeownership; or

‘‘(2) provide housing services with respect to affordable

housing, through the activities described in subsection (b).

‘‘(b) ACTIVITIES.—The activities described in this subsection

are the following:

‘‘(1) DEVELOPMENT.—The acquisition, new construction,

reconstruction, or moderate or substantial rehabilitation of

affordable housing, which may include—

‘‘(A) real property acquisition;

‘‘(B) site improvement;

‘‘(C) the development of utilities and utility services;

‘‘(D) conversion;

‘‘(E) demolition;

‘‘(F) financing;

‘‘(G) administration and planning; and

‘‘(H) other related activities.

25 USC 4229.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2981

‘‘(2) HOUSING SERVICES.—The provision of housing-related

services for affordable housing, including—

‘‘(A) housing counseling in connection with rental or

homeownership assistance;

‘‘(B) the establishment and support of resident

organizations and resident management corporations;

‘‘(C) energy auditing;

‘‘(D) activities related to the provisions of self-sufficiency and other services; and

‘‘(E) other services related to assisting owners, tenants,

contractors, and other entities participating or seeking to

participate in other housing activities assisted pursuant

to this section.

‘‘(3) HOUSING MANAGEMENT SERVICES.—The provision of

management services for affordable housing, including—

‘‘(A) the preparation of work specifications;

‘‘(B) loan processing;

‘‘(C) inspections;

‘‘(D) tenant selection;

‘‘(E) management of tenant-based rental assistance;

and

‘‘(F) management of affordable housing projects.

‘‘(4) CRIME PREVENTION AND SAFETY ACTIVITIES.—The provision of safety, security, and law enforcement measures and

activities appropriate to protect residents of affordable housing

from crime.

‘‘(5) MODEL ACTIVITIES.—Housing activities under model

programs that are—

‘‘(A) designed to carry out the purposes of this title;

and

‘‘(B) specifically approved by the Secretary as appropriate for the purpose referred to in subparagraph (A).

‘‘SEC. 811. PROGRAM REQUIREMENTS.

‘‘(a) RENTS.—

‘‘(1) ESTABLISHMENT.—Subject to paragraph (2), as a condition to receiving grant amounts under this title, the Director

shall develop written policies governing rents and homebuyer

payments charged for dwelling units assisted under this title,

including methods by which such rents and homebuyer payments are determined.

‘‘(2) MAXIMUM RENT.—In the case of any low-income family

residing in a dwelling unit assisted with grant amounts under

this title, the monthly rent or homebuyer payment (as

applicable) for that dwelling unit may not exceed 30 percent

of the monthly adjusted income of that family.

‘‘(b) MAINTENANCE AND EFFICIENT OPERATION.—

‘‘(1) IN GENERAL.—The Director shall, using amounts of

any grants received under this title, reserve and use for operating under section 810 such amounts as may be necessary

to provide for the continued maintenance and efficient operation

of such housing.

‘‘(2) DISPOSAL OF CERTAIN HOUSING.—This subsection may

not be construed to prevent the Director, or any entity funded

by the Department, from demolishing or disposing of housing,

pursuant to regulations established by the Secretary.

25 USC 4230.

114 STAT. 2982 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(c) INSURANCE COVERAGE.—As a condition to receiving grant

amounts under this title, the Director shall require adequate insurance coverage for housing units that are owned or operated or

assisted with grant amounts provided under this title.

‘‘(d) ELIGIBILITY FOR ADMISSION.—As a condition to receiving

grant amounts under this title, the Director shall develop written

policies governing the eligibility, admission, and occupancy of families for housing assisted with grant amounts provided under this

title.

‘‘(e) MANAGEMENT AND MAINTENANCE.—As a condition to

receiving grant amounts under this title, the Director shall develop

policies governing the management and maintenance of housing

assisted with grant amounts under this title.

‘‘SEC. 812. TYPES OF INVESTMENTS.

‘‘(a) IN GENERAL.—Subject to section 811 and an applicable

housing plan approved under section 803, the Director shall have—

‘‘(1) the discretion to use grant amounts for affordable

housing activities through the use of—

‘‘(A) equity investments;

‘‘(B) interest-bearing loans or advances;

‘‘(C) noninterest-bearing loans or advances;

‘‘(D) interest subsidies;

‘‘(E) the leveraging of private investments; or

‘‘(F) any other form of assistance that the Secretary

determines to be consistent with the purposes of this title;

and

‘‘(2) the right to establish the terms of assistance provided

with funds referred to in paragraph (1).

‘‘(b) INVESTMENTS.—The Director may invest grant amounts

for the purposes of carrying out affordable housing activities in

investment securities and other obligations, as approved by the

Secretary.

‘‘SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TARGETING.

‘‘(a) IN GENERAL.—Housing shall qualify for affordable housing

for purposes of this title only if—

‘‘(1) each dwelling unit in the housing—

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

for occupancy only by a family that is a low-income family

at the time of the initial occupancy of that family of that

unit; and

‘‘(B) in the case of housing for homeownership, is made

available for purchase only by a family that is a lowincome family at the time of purchase; and

‘‘(2) each dwelling unit in the housing will remain affordable, according to binding commitments satisfactory to the Secretary, for—

‘‘(A) the remaining useful life of the property (as determined by the Secretary) without regard to the term of

the mortgage or to transfer of ownership; or

‘‘(B) such other period as the Secretary determines

is the longest feasible period of time consistent with sound

economics and the purposes of this title, except upon a

foreclosure by a lender (or upon other transfer in lieu

of foreclosure) if that action—

25 USC 4232.

25 USC 4231.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2983

‘‘(i) recognizes any contractual or legal rights of

any public agency, nonprofit sponsor, or other person

or entity to take an action that would— ‘‘(I) avoid termination of low-income affordability, in the case of foreclosure; or

‘‘(II) transfer ownership in lieu of foreclosure;

and

‘‘(ii) is not for the purpose of avoiding low-income

affordability restrictions, as determined by the Secretary.

‘‘(b) EXCEPTION.—Notwithstanding subsection (a), housing

assistance pursuant to section 809(a)(2)(B) shall be considered

affordable housing for purposes of this title.

‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.

‘‘(a) LEASES.—Except to the extent otherwise provided by or

inconsistent with the laws of the State of Hawaii, in renting

dwelling units in affordable housing assisted with grant amounts

provided under this title, the Director, owner, or manager shall

use leases that— ‘‘(1) do not contain unreasonable terms and conditions;

‘‘(2) require the Director, owner, or manager to maintain

the housing in compliance with applicable housing codes and

quality standards; ‘‘(3) require the Director, owner, or manager to give adequate written notice of termination of the lease, which shall

be the period of time required under applicable State or local

law;

‘‘(4) specify that, with respect to any notice of eviction

or termination, notwithstanding any State or local law, a resident shall be informed of the opportunity, before any hearing

or trial, to examine any relevant documents, record, or regulations directly related to the eviction or termination;

‘‘(5) require that the Director, owner, or manager may

not terminate the tenancy, during the term of the lease, except

for serious or repeated violation of the terms and conditions

of the lease, violation of applicable Federal, State, or local

law, or for other good cause; and

‘‘(6) provide that the Director, owner, or manager may

terminate the tenancy of a resident for any activity, engaged

in by the resident, any member of the household of the resident,

or any guest or other person under the control of the resident,

that—

‘‘(A) threatens the health or safety of, or right to peaceful enjoyment of the premises by, other residents or

employees of the Department, owner, or manager;

‘‘(B) threatens the health or safety of, or right to peaceful enjoyment of their premises by, persons residing in

the immediate vicinity of the premises; or

‘‘(C) is criminal activity (including drug-related

criminal activity) on or off the premises.

‘‘(b) TENANT OR HOMEBUYER SELECTION.—As a condition to

receiving grant amounts under this title, the Director shall adopt

and use written tenant and homebuyer selection policies and criteria

that—

‘‘(1) are consistent with the purpose of providing housing

for low-income families;

25 USC 4233.

114 STAT. 2984 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(2) are reasonably related to program eligibility and the

ability of the applicant to perform the obligations of the lease;

and ‘‘(3) provide for— ‘‘(A) the selection of tenants and homebuyers from

a written waiting list in accordance with the policies and

goals set forth in an applicable housing plan approved

under section 803; and ‘‘(B) the prompt notification in writing of any rejected

applicant of the grounds for that rejection.

‘‘SEC. 815. REPAYMENT.

‘‘If the Department of Hawaiian Home Lands uses grant

amounts to provide affordable housing under activities under this

title and, at any time during the useful life of the housing, the

housing does not comply with the requirement under section

813(a)(2), the Secretary shall— ‘‘(1) reduce future grant payments on behalf of the Department by an amount equal to the grant amounts used for that

housing (under the authority of section 819(a)(2)); or

‘‘(2) require repayment to the Secretary of any amount

equal to those grant amounts.

‘‘SEC. 816. ANNUAL ALLOCATION.

‘‘For each fiscal year, the Secretary shall allocate any amounts

made available for assistance under this title for the fiscal year,

in accordance with the formula established pursuant to section

817 to the Department of Hawaiian Home Lands if the Department

complies with the requirements under this title for a grant under

this title.

‘‘SEC. 817. ALLOCATION FORMULA.

‘‘(a) ESTABLISHMENT.—The Secretary shall, by regulation issued

not later than the expiration of the 6-month period beginning on

the date of the enactment of the American Homeownership and

Economic Opportunity Act of 2000, in the manner provided under

section 807, establish a formula to provide for the allocation of

amounts available for a fiscal year for block grants under this

title in accordance with the requirements of this section.

‘‘(b) FACTORS FOR DETERMINATION OF NEED.—The formula

under subsection (a) shall be based on factors that reflect the

needs for assistance for affordable housing activities, including—

‘‘(1) the number of low-income dwelling units owned or

operated at the time pursuant to a contract between the

Director and the Secretary;

‘‘(2) the extent of poverty and economic distress and the

number of Native Hawaiian families eligible to reside on the

Hawaiian Home Lands; and

‘‘(3) any other objectively measurable conditions that the

Secretary and the Director may specify.

‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In establishing the

formula under subsection (a), the Secretary shall consider the relative administrative capacities of the Department of Hawaiian

Home Lands and other challenges faced by the Department,

including—

‘‘(1) geographic distribution within Hawaiian Home Lands;

and

‘‘(2) technical capacity.

Regulations.

25 USC 4236.

25 USC 4235.

25 USC 4234.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2985

‘‘(d) EFFECTIVE DATE.—This section shall take effect on the

date of the enactment of the American Homeownership and Economic Opportunity Act of 2000.

‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE.

‘‘(a) ACTIONS BY SECRETARY AFFECTING GRANT AMOUNTS.— ‘‘(1) IN GENERAL.—Except as provided in subsection (b),

if the Secretary finds after reasonable notice and opportunity

for a hearing that the Department of Hawaiian Home Lands

has failed to comply substantially with any provision of this

title, the Secretary shall— ‘‘(A) terminate payments under this title to the Department;‘‘(B) reduce payments under this title to the Department by an amount equal to the amount of such payments

that were not expended in accordance with this title; or ‘‘(C) limit the availability of payments under this title

to programs, projects, or activities not affected by such

failure to comply.

‘‘(2) ACTIONS.—If the Secretary takes an action under

subparagraph (A), (B), or (C) of paragraph (1), the Secretary

shall continue that action until the Secretary determines that

the failure by the Department to comply with the provision

has been remedied by the Department and the Department

is in compliance with that provision.

‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL INCAPACITY.— The Secretary may provide technical assistance for the Department,

either directly or indirectly, that is designed to increase the capability and capacity of the Director of the Department to administer

assistance provided under this title in compliance with the requirements under this title if the Secretary makes a finding under

subsection (a), but determines that the failure of the Department

to comply substantially with the provisions of this title—

‘‘(1) is not a pattern or practice of activities constituting

willful noncompliance; and

‘‘(2) is a result of the limited capability or capacity of

the Department of Hawaiian Home Lands.

‘‘(c) REFERRAL FOR CIVIL ACTION.—

‘‘(1) AUTHORITY.—In lieu of, or in addition to, any action

that the Secretary may take under subsection (a), if the Secretary has reason to believe that the Department of Hawaiian

Home Lands has failed to comply substantially with any provision of this title, the Secretary may refer the matter to the

Attorney General of the United States with a recommendation

that an appropriate civil action be instituted.

‘‘(2) CIVIL ACTION.—Upon receiving a referral under paragraph (1), the Attorney General may bring a civil action in

any United States district court of appropriate jurisdiction for

such relief as may be appropriate, including an action—

‘‘(A) to recover the amount of the assistance furnished

under this title that was not expended in accordance with

this title; or

‘‘(B) for mandatory or injunctive relief.

‘‘(d) REVIEW.—

‘‘(1) IN GENERAL.—If the Director receives notice under

subsection (a) of the termination, reduction, or limitation of

payments under this Act, the Director—

25 USC 4237.

114 STAT. 2986 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(A) may, not later than 60 days after receiving such

notice, file with the United States Court of Appeals for

the Ninth Circuit, or in the United States Court of Appeals

for the District of Columbia, a petition for review of the

action of the Secretary; and

‘‘(B) upon the filing of any petition under subparagraph

(A), shall forthwith transmit copies of the petition to the

Secretary and the Attorney General of the United States,

who shall represent the Secretary in the litigation.

‘‘(2) PROCEDURE.—

‘‘(A) IN GENERAL.—The Secretary shall file in the court

a record of the proceeding on which the Secretary based

the action, as provided in section 2112 of title 28, United

States Code.

‘‘(B) OBJECTIONS.—No objection to the action of the

Secretary shall be considered by the court unless the

Department has registered the objection before the Secretary.

‘‘(3) DISPOSITION.—

‘‘(A) COURT PROCEEDINGS.—

‘‘(i) JURISDICTION OF COURT.—The court shall have

jurisdiction to affirm or modify the action of the Secretary or to set the action aside in whole or in part.

‘‘(ii) FINDINGS OF FACT.—If supported by substantial evidence on the record considered as a whole,

the findings of fact by the Secretary shall be conclusive.

‘‘(iii) ADDITION.—The court may order evidence,

in addition to the evidence submitted for review under

this subsection, to be taken by the Secretary, and

to be made part of the record.

‘‘(B) SECRETARY.—

‘‘(i) IN GENERAL.—The Secretary, by reason of the

additional evidence referred to in subparagraph (A)

and filed with the court—

‘‘(I) may—

‘‘(aa) modify the findings of fact of the

Secretary; or

‘‘(bb) make new findings; and

‘‘(II) shall file—

‘‘(aa) such modified or new findings; and

‘‘(bb) the recommendation of the Secretary, if any, for the modification or setting

aside of the original action of the Secretary.

‘‘(ii) FINDINGS.—The findings referred to in clause

(i)(II)(bb) shall, with respect to a question of fact, be

considered to be conclusive if those findings are—

‘‘(I) supported by substantial evidence on the

record; and

‘‘(II) considered as a whole.

‘‘(4) FINALITY.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph

(B), upon the filing of the record under this subsection

with the court—

‘‘(i) the jurisdiction of the court shall be exclusive;

and

‘‘(ii) the judgment of the court shall be final.

Deadline.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2987

‘‘(B) REVIEW BY SUPREME COURT.—A judgment under

subparagraph (A) shall be subject to review by the Supreme

Court of the United States upon writ of certiorari or certification, as provided in section 1254 of title 28, United States

Code.

‘‘SEC. 819. MONITORING OF COMPLIANCE.

‘‘(a) ENFORCEABLE AGREEMENTS.— ‘‘(1) IN GENERAL.—The Director, through binding contractual agreements with owners or other authorized entities, shall

ensure long-term compliance with the provisions of this title. ‘‘(2) MEASURES.—The measures referred to in paragraph

(1) shall provide for— ‘‘(A) to the extent allowable by Federal and State law,

the enforcement of the provisions of this title by the Department and the Secretary; and ‘‘(B) remedies for breach of the provisions referred to

in paragraph (1). ‘‘(b) PERIODIC MONITORING.—

‘‘(1) IN GENERAL.—Not less frequently than annually, the

Director shall review the activities conducted and housing

assisted under this title to assess compliance with the requirements of this title.

‘‘(2) REVIEW.—Each review under paragraph (1) shall

include onsite inspection of housing to determine compliance

with applicable requirements.

‘‘(3) RESULTS.—The results of each review under paragraph

(1) shall be—

‘‘(A) included in a performance report of the Director

submitted to the Secretary under section 820; and

‘‘(B) made available to the public.

‘‘(c) PERFORMANCE MEASURES.—The Secretary shall establish

such performance measures as may be necessary to assess compliance with the requirements of this title.

‘‘SEC. 820. PERFORMANCE REPORTS.

‘‘(a) REQUIREMENT.—For each fiscal year, the Director shall—

‘‘(1) review the progress the Department has made during

that fiscal year in carrying out the housing plan submitted

by the Department under section 803; and

‘‘(2) submit a report to the Secretary (in a form acceptable

to the Secretary) describing the conclusions of the review.

‘‘(b) CONTENT.—Each report submitted under this section for

a fiscal year shall—

‘‘(1) describe the use of grant amounts provided to the

Department of Hawaiian Home Lands for that fiscal year;

‘‘(2) assess the relationship of the use referred to in paragraph (1) to the goals identified in the housing plan;

‘‘(3) indicate the programmatic accomplishments of the

Department; and

‘‘(4) describe the manner in which the Department would

change its housing plan submitted under section 803 as a

result of its experiences.

‘‘(c) SUBMISSIONS.—The Secretary shall—

‘‘(1) establish a date for submission of each report under

this section;

‘‘(2) review each such report; and

25 USC 4239.

25 USC 4238.

114 STAT. 2988 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(3) with respect to each such report, make recommendations as the Secretary considers appropriate to carry out the

purposes of this title.

‘‘(d) PUBLIC AVAILABILITY.—

‘‘(1) COMMENTS BY BENEFICIARIES.—In preparing a report

under this section, the Director shall make the report publicly

available to the beneficiaries of the Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.) and give a sufficient

amount of time to permit those beneficiaries to comment on

that report before it is submitted to the Secretary (in such

manner and at such time as the Director may determine).

‘‘(2) SUMMARY OF COMMENTS.—The report shall include a

summary of any comments received by the Director from beneficiaries under paragraph (1) regarding the program to carry

out the housing plan.

‘‘SEC. 821. REVIEW AND AUDIT BY SECRETARY.

‘‘(a) ANNUAL REVIEW.—

‘‘(1) IN GENERAL.—The Secretary shall, not less frequently

than on an annual basis, make such reviews and audits as

may be necessary or appropriate to determine whether—

‘‘(A) the Director has—

‘‘(i) carried out eligible activities under this title

in a timely manner;

‘‘(ii) carried out and made certifications in accordance with the requirements and the primary objectives

of this title and with other applicable laws; and

‘‘(iii) a continuing capacity to carry out the eligible

activities in a timely manner;

‘‘(B) the Director has complied with the housing plan

submitted by the Director under section 803; and

‘‘(C) the performance reports of the Department under

section 821 are accurate.

‘‘(2) ONSITE VISITS.—Each review conducted under this section shall, to the extent practicable, include onsite visits by

employees of the Department of Housing and Urban Development.

‘‘(b) REPORT BY SECRETARY.—The Secretary shall give the

Department of Hawaiian Home Lands not less than 30 days to

review and comment on a report under this subsection. After taking

into consideration the comments of the Department, the Secretary

may revise the report and shall make the comments of the Department and the report with any revisions, readily available to the

public not later than 30 days after receipt of the comments of

the Department.

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

adjustments in the amount of annual grants under this title in

accordance with the findings of the Secretary pursuant to reviews

and audits under this section. The Secretary may adjust, reduce,

or withdraw grant amounts, or take other action as appropriate

in accordance with the reviews and audits of the Secretary under

this section, except that grant amounts already expended on affordable housing activities may not be recaptured or deducted from

future assistance provided to the Department of Hawaiian Home

Lands.

Deadline.

25 USC 4240.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2989

‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

‘‘To the extent that the financial transactions of the Department

of Hawaiian Home Lands involving grant amounts under this title

relate to amounts provided under this title, those transactions

may be audited by the Comptroller General of the United States

under such regulations as may be prescribed by the Comptroller

General. The Comptroller General of the United States shall have

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

papers, things, or property belonging to or in use by the Department

of Hawaiian Home Lands pertaining to such financial transactions

and necessary to facilitate the audit.

‘‘SEC. 823. REPORTS TO CONGRESS.

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

of each fiscal year in which assistance under this title is made

available, the Secretary shall submit to Congress a report that

contains—

‘‘(1) a description of the progress made in accomplishing

the objectives of this title;

‘‘(2) a summary of the use of funds available under this

title during the preceding fiscal year; and

‘‘(3) a description of the aggregate outstanding loan guarantees under section 184A of the Housing and Community

Development Act of 1992.

‘‘(b) RELATED REPORTS.—The Secretary may require the

Director to submit to the Secretary such reports and other information as may be necessary in order for the Secretary to prepare

the report required under subsection (a).

‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

‘‘There are authorized to be appropriated to the Department

of Housing and Urban Development for grants under this title

such sums as may be necessary for each of fiscal years 2001,

2002, 2003, 2004, and 2005.’’.

SEC. 514. LOAN GUARANTEES.

Subtitle E of title I of the Housing and Community Development Act of 1992 is amended by inserting after section 184 (12

U.S.C. 1715z–13a) the following:

‘‘SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.

‘‘(a) DEFINITIONS.—In this section:

‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS.—The term

‘Department of Hawaiian Home Lands’ means the agency or

department of the government of the State of Hawaii that

is responsible for the administration of the Hawaiian Homes

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

‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a

Native Hawaiian family, the Department of Hawaiian Home

Lands, the Office of Hawaiian Affairs, and private nonprofit

or private for-profit organizations experienced in the planning

and development of affordable housing for Native Hawaiians.

‘‘(3) FAMILY.—The term ‘family’ means one or more persons

maintaining a household, as the Secretary shall by regulation

provide.

‘‘(4) GUARANTEE FUND.—The term ‘Guarantee Fund’ means

the Native Hawaiian Housing Loan Guarantee Fund established under subsection ( j).

12 USC 1715z–

13b.

25 USC 4243.

Deadline.

42 USC 4242.

25 USC 4241.

114 STAT. 2990 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Hawaiian Home

Lands’ means lands that—

‘‘(A) have the status of Hawaiian Home Lands under

section 204 of the Hawaiian Homes Commission Act (42

Stat. 110); or

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

‘‘(6) NATIVE HAWAIIAN.—The term ‘Native Hawaiian’ means

any individual who is—

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

‘‘(B) a descendant of the aboriginal people, who, prior

to 1778, occupied and exercised sovereignty in the area

that currently constitutes the State of Hawaii, as evidenced

by—

‘‘(i) genealogical records;

‘‘(ii) verification by kupuna (elders) or kama’aina

(long-term community residents); or

‘‘(iii) birth records of the State of Hawaii.

‘‘(7) OFFICE OF HAWAIIAN AFFAIRS.—The term ‘Office of

Hawaiian Affairs’ means the entity of that name established

under the constitution of the State of Hawaii.

‘‘(b) AUTHORITY.—To provide access to sources of private

financing to Native Hawaiian families who otherwise could not

acquire housing financing because of the unique legal status of

the Hawaiian Home Lands or as a result of a lack of access to

private financial markets, the Secretary may guarantee an amount

not to exceed 100 percent of the unpaid principal and interest

that is due on an eligible loan under subsection (c).

‘‘(c) ELIGIBLE LOANS.—Under this section, a loan is an eligible

loan if that loan meets the following requirements:

‘‘(1) ELIGIBLE BORROWERS.—The loan is made only to a

borrower who is—

‘‘(A) a Native Hawaiian family;

‘‘(B) the Department of Hawaiian Home Lands;

‘‘(C) the Office of Hawaiian Affairs; or

‘‘(D) a private nonprofit organization experienced in

the planning and development of affordable housing for

Native Hawaiians.

‘‘(2) ELIGIBLE HOUSING.—

‘‘(A) IN GENERAL.—The loan will be used to construct,

acquire, or rehabilitate not more than 4-family dwellings

that are standard housing and are located on Hawaiian

Home Lands for which a housing plan described in subparagraph (B) applies.

‘‘(B) HOUSING PLAN.—A housing plan described in this

subparagraph is a housing plan that—

‘‘(i) has been submitted and approved by the Secretary under section 803 of the Native American

Housing Assistance and Self-Determination Act of

1996; and

‘‘(ii) provides for the use of loan guarantees under

this section to provide affordable homeownership

housing on Hawaiian Home Lands.

‘‘(3) SECURITY.—The loan may be secured by any collateral

authorized under applicable Federal or State law.

‘‘(4) LENDERS.—

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2991

‘‘(A) IN GENERAL.—The loan shall be made only by

a lender approved by, and meeting qualifications established by, the Secretary, including any lender described

in subparagraph (B), except that a loan otherwise insured

or guaranteed by an agency of the Federal Government

or made by the Department of Hawaiian Home Lands

from amounts borrowed from the United States shall not

be eligible for a guarantee under this section.

‘‘(B) APPROVAL.—The following lenders shall be considered to be lenders that have been approved by the Secretary:

‘‘(i) Any mortgagee approved by the Secretary for

participation in the single family mortgage insurance

program under title II of the National Housing Act

(12 U.S.C.A. 1707 et seq.).

‘‘(ii) Any lender that makes housing loans under

chapter 37 of title 38, United States Code, that are

automatically guaranteed under section 3702(d) of title

38, United States Code.

‘‘(iii) Any lender approved by the Secretary of Agriculture to make guaranteed loans for single family

housing under the Housing Act of 1949 (42 U.S.C.A.

1441 et seq.).

‘‘(iv) Any other lender that is supervised, approved,

regulated, or insured by any agency of the Federal

Government.

‘‘(5) TERMS.—The loan shall—

‘‘(A) be made for a term not exceeding 30 years;

‘‘(B) bear interest (exclusive of the guarantee fee under

subsection (e) and service charges, if any) at a rate agreed

upon by the borrower and the lender and determined by

the Secretary to be reasonable, but not to exceed the rate

generally charged in the area (as determined by the Secretary) for home mortgage loans not guaranteed or insured

by any agency or instrumentality of the Federal Government;

‘‘(C) involve a principal obligation not exceeding—

‘‘(i) 97.75 percent of the appraised value of the

property as of the date the loan is accepted for guarantee (or 98.75 percent if the value of the property

is $50,000 or less); or

‘‘(ii) the amount approved by the Secretary under

this section; and

‘‘(D) involve a payment on account of the property—

‘‘(i) in cash or its equivalent; or

‘‘(ii) through the value of any improvements to

the property made through the skilled or unskilled

labor of the borrower, as the Secretary shall provide.

‘‘(d) CERTIFICATE OF GUARANTEE.—

‘‘(1) APPROVAL PROCESS.—

‘‘(A) IN GENERAL.—Before the Secretary approves any

loan for guarantee under this section, the lender shall

submit the application for the loan to the Secretary for

examination.

‘‘(B) APPROVAL.—If the Secretary approves the application submitted under subparagraph (A), the Secretary shall

114 STAT. 2992 PUBLIC LAW 106–569—DEC. 27, 2000

issue a certificate under this subsection as evidence of

the loan guarantee approved.

‘‘(2) STANDARD FOR APPROVAL.—The Secretary may approve

a loan for guarantee under this section and issue a certificate

under this subsection only if the Secretary determines that

there is a reasonable prospect of repayment of the loan.

‘‘(3) EFFECT.—

‘‘(A) IN GENERAL.—A certificate of guarantee issued

under this subsection by the Secretary shall be conclusive

evidence of the eligibility of the loan for guarantee under

this section and the amount of that guarantee.

‘‘(B) EVIDENCE.—The evidence referred to in subparagraph (A) shall be incontestable in the hands of the bearer.

‘‘(C) FULL FAITH AND CREDIT.—The full faith and credit

of the United States is pledged to the payment of all

amounts agreed to be paid by the Secretary as security

for the obligations made by the Secretary under this section.

‘‘(4) FRAUD AND MISREPRESENTATION.—This subsection may

not be construed—

‘‘(A) to preclude the Secretary from establishing

defenses against the original lender based on fraud or

material misrepresentation; or

‘‘(B) to bar the Secretary from establishing by regulations that are on the date of issuance or disbursement,

whichever is earlier, partial defenses to the amount payable

on the guarantee.

‘‘(e) GUARANTEE FEE.—

‘‘(1) IN GENERAL.—The Secretary shall fix and collect a

guarantee fee for the guarantee of a loan under this section,

which may not exceed the amount equal to 1 percent of the

principal obligation of the loan.

‘‘(2) PAYMENT.—The fee under this subsection shall—

‘‘(A) be paid by the lender at time of issuance of the

guarantee; and

‘‘(B) be adequate, in the determination of the Secretary,

to cover expenses and probable losses.

‘‘(3) DEPOSIT.—The Secretary shall deposit any fees collected under this subsection in the Native Hawaiian Housing

Loan Guarantee Fund established under subsection ( j).

‘‘(f ) LIABILITY UNDER GUARANTEE.—The liability under a guarantee provided under this section shall decrease or increase on

a pro rata basis according to any decrease or increase in the

amount of the unpaid obligation under the provisions of the loan

agreement involved.

‘‘(g) TRANSFER AND ASSUMPTION.—Notwithstanding any other

provision of law, any loan guaranteed under this section, including

the security given for the loan, may be sold or assigned by the

lender to any financial institution subject to examination and supervision by an agency of the Federal Government or of any State

or the District of Columbia.

‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL MONEY PENALTIES.—

‘‘(1) IN GENERAL.—

‘‘(A) GROUNDS FOR ACTION.—The Secretary may take

action under subparagraph (B) if the Secretary determines

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2993

that any lender or holder of a guarantee certificate under

subsection (d)—

‘‘(i) has failed—

‘‘(I) to maintain adequate accounting records;

‘‘(II) to service adequately loans guaranteed

under this section; or

‘‘(III) to exercise proper credit or underwriting

judgment; or

‘‘(ii) has engaged in practices otherwise detrimental to the interest of a borrower or the United

States.

‘‘(B) ACTIONS.—Upon a determination by the Secretary

that a holder of a guarantee certificate under subsection

(d) has failed to carry out an activity described in subparagraph (A)(i) or has engaged in practices described in

subparagraph (A)(ii), the Secretary may—

‘‘(i) refuse, either temporarily or permanently, to

guarantee any further loans made by such lender or

holder;

‘‘(ii) bar such lender or holder from acquiring additional loans guaranteed under this section; and

‘‘(iii) require that such lender or holder assume

not less than 10 percent of any loss on further loans

made or held by the lender or holder that are guaranteed under this section.

‘‘(2) CIVIL MONEY PENALTIES FOR INTENTIONAL VIOLATIONS.—

‘‘(A) IN GENERAL.—The Secretary may impose a civil

monetary penalty on a lender or holder of a guarantee

certificate under subsection (d) if the Secretary determines

that the holder or lender has intentionally failed—

‘‘(i) to maintain adequate accounting records;

‘‘(ii) to adequately service loans guaranteed under

this section; or

‘‘(iii) to exercise proper credit or underwriting judgment.

‘‘(B) PENALTIES.—A civil monetary penalty imposed

under this paragraph shall be imposed in the manner

and be in an amount provided under section 536 of the

National Housing Act (12 U.S.C.A. 1735f–1) with respect

to mortgagees and lenders under that Act.

‘‘(3) PAYMENT ON LOANS MADE IN GOOD FAITH.—Notwithstanding paragraphs (1) and (2), if a loan was made in good

faith, the Secretary may not refuse to pay a lender or holder

of a valid guarantee on that loan, without regard to whether

the lender or holder is barred under this subsection.

‘‘(i) PAYMENT UNDER GUARANTEE.—

‘‘(1) LENDER OPTIONS.—

‘‘(A) IN GENERAL.—

‘‘(i) NOTIFICATION.—If a borrower on a loan guaranteed under this section defaults on the loan, the holder

of the guarantee certificate shall provide written notice

of the default to the Secretary.

‘‘(ii) PAYMENT.—Upon providing the notice required

under clause (i), the holder of the guarantee certificate

114 STAT. 2994 PUBLIC LAW 106–569—DEC. 27, 2000

shall be entitled to payment under the guarantee (subject to the provisions of this section) and may proceed

to obtain payment in one of the following manners: ‘‘(I) FORECLOSURE.— ‘‘(aa) IN GENERAL.—The holder of the certificate may initiate foreclosure proceedings

(after providing written notice of that action

to the Secretary). ‘‘(bb) PAYMENT.—Upon a final order by

the court authorizing foreclosure and submission to the Secretary of a claim for payment

under the guarantee, the Secretary shall pay

to the holder of the certificate the pro rata

portion of the amount guaranteed (as determined pursuant to subsection (f )) plus reasonable fees and expenses as approved by the

Secretary. ‘‘(cc) SUBROGATION.—The rights of the Secretary shall be subrogated to the rights of

the holder of the guarantee. The holder shall

assign the obligation and security to the Secretary.

‘‘(II) NO FORECLOSURE.—

‘‘(aa) IN GENERAL.—Without seeking foreclosure (or in any case in which a foreclosure

proceeding initiated under clause (i) continues

for a period in excess of 1 year), the holder

of the guarantee may submit to the Secretary

a request to assign the obligation and security

interest to the Secretary in return for payment

of the claim under the guarantee. The Secretary may accept assignment of the loan if

the Secretary determines that the assignment

is in the best interest of the United States.

‘‘(bb) PAYMENT.—Upon assignment, the

Secretary shall pay to the holder of the guarantee the pro rata portion of the amount

guaranteed (as determined under subsection

(f )).

‘‘(cc) SUBROGATION.—The rights of the Secretary shall be subrogated to the rights of

the holder of the guarantee. The holder shall

assign the obligation and security to the Secretary.

‘‘(B) REQUIREMENTS.—Before any payment under a

guarantee is made under subparagraph (A), the holder

of the guarantee shall exhaust all reasonable possibilities

of collection. Upon payment, in whole or in part, to the

holder, the note or judgment evidencing the debt shall

be assigned to the United States and the holder shall

have no further claim against the borrower or the United

States. The Secretary shall then take such action to collect

as the Secretary determines to be appropriate.

‘‘(2) LIMITATIONS ON LIQUIDATION.—

‘‘(A) IN GENERAL.—If a borrower defaults on a loan

guaranteed under this section that involves a security

interest in restricted Hawaiian Home Land property, the

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2995

mortgagee or the Secretary shall only pursue liquidation

after offering to transfer the account to another eligible

Hawaiian family or the Department of Hawaiian Home

Lands.

‘‘(B) LIMITATION.—If, after action is taken under

subparagraph (A), the mortgagee or the Secretary subsequently proceeds to liquidate the account, the mortgagee

or the Secretary shall not sell, transfer, or otherwise dispose of or alienate the property described in subparagraph

(A) except to another eligible Hawaiian family or to the

Department of Hawaiian Home Lands. ‘‘( j) HAWAIIAN HOUSING LOAN GUARANTEE FUND.— ‘‘(1) ESTABLISHMENT.—There is established in the Treasury

of the United States the Hawaiian Housing Loan Guarantee

Fund for the purpose of providing loan guarantees under this

section. ‘‘(2) CREDITS.—The Guarantee Fund shall be credited

with—

‘‘(A) any amount, claims, notes, mortgages, contracts,

and property acquired by the Secretary under this section,

and any collections and proceeds therefrom;

‘‘(B) any amounts appropriated pursuant to paragraph

(7);

‘‘(C) any guarantee fees collected under subsection (e);

and

‘‘(D) any interest or earnings on amounts invested

under paragraph (4).

‘‘(3) USE.—Amounts in the Guarantee Fund shall be available, to the extent provided in appropriations Acts, for—

‘‘(A) fulfilling any obligations of the Secretary with

respect to loans guaranteed under this section, including

the costs (as that term is defined in section 502 of the

Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of

such loans;

‘‘(B) paying taxes, insurance, prior liens, expenses necessary to make fiscal adjustment in connection with the

application and transmittal of collections, and other

expenses and advances to protect the Secretary for loans

which are guaranteed under this section or held by the

Secretary;

‘‘(C) acquiring such security property at foreclosure

sales or otherwise;

‘‘(D) paying administrative expenses in connection with

this section; and

‘‘(E) reasonable and necessary costs of rehabilitation

and repair to properties that the Secretary holds or owns

pursuant to this section.

‘‘(4) INVESTMENT.—Any amounts in the Guarantee Fund

determined by the Secretary to be in excess of amounts currently required at the time of the determination to carry out

this section may be invested in obligations of the United States. ‘‘(5) LIMITATION ON COMMITMENTS TO GUARANTEE LOANS

AND MORTGAGES.—

‘‘(A) REQUIREMENT OF APPROPRIATIONS.—The authority

of the Secretary to enter into commitments to guarantee

loans under this section shall be effective for any fiscal

year to the extent, or in such amounts as are, or have

114 STAT. 2996 PUBLIC LAW 106–569—DEC. 27, 2000

been, provided in appropriations Acts, without regard to

the fiscal year for which such amounts were appropriated.

‘‘(B) LIMITATIONS ON COSTS OF GUARANTEES.—The

authority of the Secretary to enter into commitments to

guarantee loans under this section shall be effective for

any fiscal year only to the extent that amounts in the

Guarantee Fund are or have been made available in appropriations Acts to cover the costs (as that term is defined

in section 502 of the Federal Credit Reform Act of 1990

(2 U.S.C. 661a)) of such loan guarantees for such fiscal

year. Any amounts appropriated pursuant to this subparagraph shall remain available until expended.

‘‘(C) LIMITATION ON OUTSTANDING AGGREGATE PRINCIPAL AMOUNT.—Subject to the limitations in subparagraphs (A) and (B), the Secretary may enter into commitments to guarantee loans under this section for each of

fiscal years 2001, 2002, 2003, 2004, and 2005 with an

aggregate outstanding principal amount not exceeding

$100,000,000 for each such fiscal year.

‘‘(6) LIABILITIES.—All liabilities and obligations of the assets

credited to the Guarantee Fund under paragraph (2)(A) shall

be liabilities and obligations of the Guarantee Fund.

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

authorized to be appropriated to the Guarantee Fund to carry

out this section such sums as may be necessary for each of

fiscal years 2001, 2002, 2003, 2004, and 2005.

‘‘(k) REQUIREMENTS FOR STANDARD HOUSING.—

‘‘(1) IN GENERAL.—The Secretary shall, by regulation, establish housing safety and quality standards to be applied for

use under this section.

‘‘(2) STANDARDS.—The standards referred to in paragraph

(1) shall—

‘‘(A) provide sufficient flexibility to permit the use of

various designs and materials in housing acquired with

loans guaranteed under this section; and

‘‘(B) require each dwelling unit in any housing acquired

in the manner described in subparagraph (A) to—

‘‘(i) be decent, safe, sanitary, and modest in size

and design;

‘‘(ii) conform with applicable general construction

standards for the region in which the housing is

located;

‘‘(iii) contain a plumbing system that—

‘‘(I) uses a properly installed system of piping;

‘‘(II) includes a kitchen sink and a partitional

bathroom with lavatory, toilet, and bath or shower;

and

‘‘(III) uses water supply, plumbing, and sewage

disposal systems that conform to any minimum

standards established by the applicable county or

State;

‘‘(iv) contain an electrical system using wiring and

equipment properly installed to safely supply electrical

energy for adequate lighting and for operation of appliances that conforms to any appropriate county, State,

or national code;

Regulations.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2997

‘‘(v) be not less than the size provided under the

applicable locally adopted standards for size of dwelling

units, except that the Secretary, upon request of the

Department of Hawaiian Home Lands may waive the

size requirements under this paragraph; and

‘‘(vi) conform with the energy performance requirements for new construction established by the Secretary under section 526(a) of the National Housing

Act (12 U.S.C.A. 1735f–4), unless the Secretary determines that the requirements are not applicable.

‘‘(l) APPLICABILITY OF CIVIL RIGHTS STATUTES.—To the extent

that the requirements of title VI of the Civil Rights Act of 1964

(42 U.S.C. 2000d et seq.) or of the Fair Housing Act (42 U.S.C.A.

3601 et seq.) apply to a guarantee provided under this subsection,

nothing in the requirements concerning discrimination on the basis

of race shall be construed to prevent the provision of the guarantee

to an eligible entity on the basis that the entity serves Native

Hawaiian families or is a Native Hawaiian family.’’.

TITLE VI—MANUFACTURED HOUSING

IMPROVEMENT

SEC. 601. SHORT TITLE; REFERENCES.

(a) SHORT TITLE.—This title may be cited as the ‘‘Manufactured

Housing Improvement Act of 2000’’.

(b) REFERENCES.—Whenever in this title an amendment is

expressed in terms of an amendment to, or repeal of, a section

or other provision, the reference shall be considered to be made

to that section or other provision of the National Manufactured

Housing Construction and Safety Standards Act of 1974 (42 U.S.C.

5401 et seq.).

SEC. 602. FINDINGS AND PURPOSES.

Section 602 (42 U.S.C. 5401) is amended to read as follows:

‘‘SEC. 602. FINDINGS AND PURPOSES.

‘‘(a) FINDINGS.—Congress finds that—

‘‘(1) manufactured housing plays a vital role in meeting

the housing needs of the Nation; and

‘‘(2) manufactured homes provide a significant resource

for affordable homeownership and rental housing accessible

to all Americans.

‘‘(b) PURPOSES.—The purposes of this title are—

‘‘(1) to protect the quality, durability, safety, and affordability of manufactured homes;

‘‘(2) to facilitate the availability of affordable manufactured

homes and to increase homeownership for all Americans;

‘‘(3) to provide for the establishment of practical, uniform,

and, to the extent possible, performance-based Federal construction standards for manufactured homes; ‘‘(4) to encourage innovative and cost-effective construction

techniques for manufactured homes;

‘‘(5) to protect residents of manufactured homes with

respect to personal injuries and the amount of insurance costs

and property damages in manufactured housing, consistent

with the other purposes of this section;

42 USC 5401

note.

Manufactured

Housing

Improvement Act

of 2000.

114 STAT. 2998 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(6) to establish a balanced consensus process for the

development, revision, and interpretation of Federal construction and safety standards for manufactured homes and related

regulations for the enforcement of such standards;

‘‘(7) to ensure uniform and effective enforcement of Federal

construction and safety standards for manufactured homes;

and

‘‘(8) to ensure that the public interest in, and need for,

affordable manufactured housing is duly considered in all determinations relating to the Federal standards and their enforcement.’’.

SEC. 603. DEFINITIONS.

(a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is amended—

(1) in paragraph (2), by striking ‘‘dealer’’ and inserting

‘‘retailer’’;

(2) in paragraph (12), by striking ‘‘and’’ at the end;

(3) in paragraph (13), by striking the period at the end

and inserting a semicolon; and

(4) by adding at the end the following:

‘‘(14) ‘administering organization’ means the recognized,

voluntary, private sector, consensus standards body with specific experience in developing model residential building codes

and standards involving all disciplines regarding construction

and safety that administers the consensus standards through

a development process;

‘‘(15) ‘consensus committee’ means the committee established under section 604(a)(3);

‘‘(16) ‘consensus standards development process’ means the

process by which additions, revisions, and interpretations to

the Federal manufactured home construction and safety standards and enforcement regulations shall be developed and recommended to the Secretary by the consensus committee;

‘‘(17) ‘primary inspection agency’ means a State agency

or private organization that has been approved by the Secretary

to act as a design approval primary inspection agency or a

production inspection primary inspection agency, or both;

‘‘(18) ‘design approval primary inspection agency’ means

a State agency or private organization that has been approved

by the Secretary to evaluate and either approve or disapprove

manufactured home designs and quality control procedures;

‘‘(19) ‘installation standards’ means reasonable specifications for the installation of a manufactured home, at the place

of occupancy, to ensure proper siting, the joining of all sections

of the home, and the installation of stabilization, support, or

anchoring systems;

‘‘(20) ‘monitoring’ means the process of periodic review

of the primary inspection agencies, by the Secretary or by

a State agency under an approved State plan pursuant to

section 623, in accordance with regulations promulgated under

this title, giving due consideration to the recommendations

of the consensus committee under section 604(b), which process

shall be for the purpose of ensuring that the primary inspection

agencies are discharging their duties under this title; and

‘‘(21) ‘production inspection primary inspection agency’

means a State agency or private organization that has been

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2999

approved by the Secretary to evaluate the ability of manufactured home manufacturing plants to comply with approved

quality control procedures and with the Federal manufactured

home construction and safety standards promulgated hereunder, including the inspection of homes in the plant.’’.

(b) CONFORMING AMENDMENTS.—The National Manufactured

Housing Construction and Safety Standards Act of 1974 (42 U.S.C.

5401 et seq.) is amended— (1) in section 613 (42 U.S.C. 5412), by striking ‘‘dealer’’ each place it appears and inserting ‘‘retailer’’;

(2) in section 614(f ) (42 U.S.C. 5413(f )), by striking ‘‘dealer’’ each place it appears and inserting ‘‘retailer’’;

(3) in section 615 (42 U.S.C. 5414)— (A) in subsection (b)(1), by striking ‘‘dealer’’ and

inserting ‘‘retailer’’;

(B) in subsection (b)(3), by striking ‘‘dealer or dealers’’ and inserting ‘‘retailer or retailers’’; and

(C) in subsections (d) and (f ), by striking ‘‘dealers’’ each place it appears and inserting ‘‘retailers’’;

(4) in section 616 (42 U.S.C. 5415), by striking ‘‘dealer’’ and inserting ‘‘retailer’’; and

(5) in section 623(c)(9), by striking ‘‘dealers’’ and inserting ‘‘retailers’’.

SEC. 604. FEDERAL MANUFACTURED HOME CONSTRUCTION AND

SAFETY STANDARDS.

Section 604 (42 U.S.C. 5403) is amended—

(1) by striking subsections (a) and (b) and inserting the

following:

‘‘(a) ESTABLISHMENT.—

‘‘(1) AUTHORITY.—The Secretary shall establish, by order,

appropriate Federal manufactured home construction and

safety standards, each of which—

‘‘(A) shall—

‘‘(i) be reasonable and practical;

‘‘(ii) meet high standards of protection consistent

with the purposes of this title; and

‘‘(iii) be performance-based and objectively stated,

unless clearly inappropriate; and

‘‘(B) except as provided in subsection (b), shall be established in accordance with the consensus standards development process.

‘‘(2) CONSENSUS STANDARDS AND REGULATORY DEVELOPMENT PROCESS.—

‘‘(A) INITIAL AGREEMENT.—Not later than 180 days

after the date of the enactment of the Manufactured

Housing Improvement Act of 2000, the Secretary shall

enter into a contract with an administering organization.

The contractual agreement shall—

‘‘(i) terminate on the date on which a contract

is entered into under subparagraph (B); and ‘‘(ii) require the administering organization to—

‘‘(I) recommend the initial members of the consensus committee under paragraph (3);

‘‘(II) administer the consensus standards

development process until the termination of that

agreement; and

Deadline.

42 USC 5422.

114 STAT. 3000 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(III) administer the consensus development

and interpretation process for procedural and

enforcement regulations and regulations specifying

the permissible scope and conduct of monitoring

until the termination of that agreement.

‘‘(B) COMPETITIVELY PROCURED CONTRACT.—Upon the

expiration of the 4-year period beginning on the date on

which all members of the consensus committee are

appointed under paragraph (3), the Secretary shall, using

competitive procedures (as such term is defined in section

4 of the Office of Federal Procurement Policy Act), enter

into a competitively awarded contract with an administering organization. The administering organization shall

administer the consensus process for the development and

interpretation of the Federal standards, the procedural and

enforcement regulations, and regulations specifying the

permissible scope and conduct of monitoring, in accordance

with this title.

‘‘(C) PERFORMANCE REVIEW.—The Secretary—

‘‘(i) shall periodically review the performance of

the administering organization; and

‘‘(ii) may replace the administering organization

with another qualified technical or building code

organization, pursuant to competitive procedures, if

the Secretary determines in writing that the administering organization is not fulfilling the terms of the

agreement or contract to which the administering

organization is subject or upon the expiration of the

agreement or contract.

‘‘(3) CONSENSUS COMMITTEE.—

‘‘(A) PURPOSE.—There is established a committee to

be known as the ‘consensus committee’, which shall, in

accordance with this title—

‘‘(i) provide periodic recommendations to the Secretary to adopt, revise, and interpret the Federal

manufactured housing construction and safety standards in accordance with this subsection;

‘‘(ii) provide periodic recommendations to the Secretary to adopt, revise, and interpret the procedural

and enforcement regulations, including regulations

specifying the permissible scope and conduct of monitoring in accordance with subsection (b);

‘‘(iii) be organized and carry out its business in

a manner that guarantees a fair opportunity for the

expression and consideration of various positions and

for public participation; and

‘‘(iv) be deemed to be an advisory committee not

composed of Federal employees.

‘‘(B) MEMBERSHIP.—The consensus committee shall be

composed of—

‘‘(i) twenty-one voting members appointed by the

Secretary, after consideration of the recommendations

of the administering organization, from among individuals who are qualified by background and experience

to participate in the work of the consensus committee;

and

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3001

‘‘(ii) one nonvoting member appointed by the Secretary to represent the Secretary on the consensus

committee.

‘‘(C) DISAPPROVAL.—The Secretary shall state, in

writing, the reasons for failing to appoint any individual

recommended under paragraph (2)(A)(ii)(I).

‘‘(D) SELECTION PROCEDURES AND REQUIREMENTS.—

Each member of the consensus committee shall be

appointed in accordance with selection procedures, which

shall be based on the procedures for consensus committees

promulgated by the American National Standards Institute

(or successor organization), except that the American

National Standards Institute interest categories shall be

modified for purposes of this paragraph to ensure equal

representation on the consensus committee of the following

interest categories:

‘‘(i) PRODUCERS.—Seven producers or retailers of

manufactured housing.

‘‘(ii) USERS.—Seven persons representing consumer

interests, such as consumer organizations, recognized

consumer leaders, and owners who are residents of

manufactured homes.

‘‘(iii) GENERAL INTEREST AND PUBLIC OFFICIALS.—

Seven general interest and public official members.

‘‘(E) BALANCING OF INTERESTS.—

‘‘(i) IN GENERAL.—In order to achieve a proper

balance of interests on the consensus committee, the

Secretary, in appointing the members of the consensus

committee—

‘‘(I) shall ensure that all directly and materially affected interests have the opportunity for

fair and equitable participation without dominance

by any single interest; and

‘‘(II) may reject the appointment of any one

or more individuals in order to ensure that there

is not dominance by any single interest.

‘‘(ii) DOMINANCE DEFINED.—In this subparagraph,

the term ‘dominance’ means a position or exercise of

dominant authority, leadership, or influence by reason

of superior leverage, strength, or representation.

‘‘(F) ADDITIONAL QUALIFICATIONS.—

‘‘(i) FINANCIAL INDEPENDENCE.—No individual

appointed under subparagraph (D)(ii) shall have, and

three of the individuals appointed under subparagraph

(D)(iii) shall not have—

‘‘(I) a significant financial interest in any segment of the manufactured housing industry; or

‘‘(II) a significant relationship to any person

engaged in the manufactured housing industry.

‘‘(ii) POST-EMPLOYMENT BAN.—Each individual

described in clause (i) shall be subject to a ban disallowing compensation from the manufactured housing

industry during the period of, and during the 1-year

following, the membership of the individual on the

consensus committee.

‘‘(G) MEETINGS.—

114 STAT. 3002 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(i) NOTICE; OPEN TO PUBLIC.—The consensus committee shall provide advance notice of each meeting

of the consensus committee to the Secretary and cause

to be published in the Federal Register advance notice

of each such meeting. All meetings of the consensus

committee shall be open to the public.

‘‘(ii) REIMBURSEMENT.—Members of the consensus

committee in attendance at meetings of the consensus

committee shall be reimbursed for their actual

expenses as authorized by section 5703 of title 5,

United States Code, for persons employed intermittently in Government service.

‘‘(H) ADMINISTRATION.—The consensus committee and

the administering organization shall— ‘‘(i) operate in conformance with the procedures

established by the American National Standards

Institute for the development and coordination of

American National Standards; and ‘‘(ii) apply to the American National Standards

Institute and take such other actions as may be necessary to obtain accreditation from the American

National Standards Institute.

‘‘(I) STAFF AND TECHNICAL SUPPORT.—The administering organization shall, upon the request of the consensus committee—

‘‘(i) provide reasonable staff resources to the consensus committee; and

‘‘(ii) furnish technical support in a timely manner

to any of the interest categories described in subparagraph (D) represented on the consensus committee,

if—

‘‘(I) the support is necessary to ensure the

informed participation of the consensus committee

members; and

‘‘(II) the costs of providing the support are

reasonable.

‘‘(J) DATE OF INITIAL APPOINTMENTS.—The initial

appointments of all the members of the consensus committee shall be completed not later than 90 days after

the date on which a contractual agreement under paragraph (2)(A) is entered into with the administering

organization.

‘‘(4) REVISIONS OF STANDARDS.—

‘‘(A) IN GENERAL.—Beginning on the date on which

all members of the consensus committee are appointed

under paragraph (3), the consensus committee shall, not

less than once during each 2-year period—

‘‘(i) consider revisions to the Federal manufactured

home construction and safety standards; and

‘‘(ii) submit proposed revised standards, if

approved in a vote of the consensus committee by

two-thirds of the members, to the Secretary in the

form of a proposed rule, including an economic analysis.

‘‘(B) PUBLICATION OF PROPOSED REVISED STANDARDS.— ‘‘(i) PUBLICATION BY THE SECRETARY.—The consensus committee shall provide a proposed revised

Federal Register,

publication.

Deadline.

Deadline.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3003

standard under subparagraph (A)(ii) to the Secretary

who shall, not later than 30 days after receipt, cause

such proposed revised standard to be published in the

Federal Register for notice and comment in accordance

with section 553 of title 5, United States Code. Unless

clause (ii) applies, the Secretary shall provide an opportunity for public comment on such proposed revised

standard in accordance with such section 553 and any

such comments shall be submitted directly to the consensus committee, without delay.

‘‘(ii) PUBLICATION OF REJECTED PROPOSED REVISED

STANDARDS.—If the Secretary rejects the proposed

revised standard, the Secretary shall cause to be published in the Federal Register the rejected proposed

revised standard, the reasons for rejection, and any

recommended modifications set forth.

‘‘(C) PRESENTATION OF PUBLIC COMMENTS; PUBLICATION

OF RECOMMENDED REVISIONS.—

‘‘(i) PRESENTATION.—Any public comments, views,

and objections to a proposed revised standard published under subparagraph (B) shall be presented by

the Secretary to the consensus committee upon their

receipt and in the manner received, in accordance with

procedures established by the American National

Standards Institute.

‘‘(ii) PUBLICATION BY THE SECRETARY.—The consensus committee shall provide to the Secretary any

revision proposed by the consensus committee, which

the Secretary shall, not later than 30 calendar days

after receipt, cause to be published in the Federal

Register a notice of the recommended revisions of the

consensus committee to the standards, a notice of the

submission of the recommended revisions to the Secretary, and a description of the circumstances under

which the proposed revised standards could become

effective.

‘‘(iii) PUBLICATION OF REJECTED PROPOSED REVISED

STANDARDS.—If the Secretary rejects the proposed

revised standard, the Secretary shall cause to be published in the Federal Register the rejected proposed

revised standard, the reasons for rejection, and any

recommended modifications set forth.

‘‘(5) REVIEW BY THE SECRETARY.—

‘‘(A) IN GENERAL.—The Secretary shall either adopt,

modify, or reject a standard, as submitted by the consensus

committee under paragraph (4)(A).

‘‘(B) TIMING.—Not later than 12 months after the date

on which a standard is submitted to the Secretary by

the consensus committee, the Secretary shall take action

regarding such standard under subparagraph (C).

‘‘(C) PROCEDURES.—If the Secretary— ‘‘(i) adopts a standard recommended by the consensus committee, the Secretary shall—

‘‘(I) issue a final order without further rulemaking; and

‘‘(II) cause the final order to be published in

the Federal Register;

Federal Register,

publication.

Deadline.

Federal Register,

publication.

Deadline.

Federal Register,

publication.

114 STAT. 3004 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(ii) determines that any standard should be

rejected, the Secretary shall— ‘‘(I) reject the standard; and

‘‘(II) cause to be published in the Federal Register a notice to that effect, together with the reason or reasons for rejecting the proposed standard;

or

‘‘(iii) determines that a standard recommended by

the consensus committee should be modified, the Secretary shall—

‘‘(I) cause to be published in the Federal Register the proposed modified standard, together with

an explanation of the reason or reasons for the

determination of the Secretary; and

‘‘(II) provide an opportunity for public comment in accordance with section 553 of title 5,

United States Code.

‘‘(D) FINAL ORDER.—Any final standard under this

paragraph shall become effective pursuant to subsection

(c).

‘‘(6) FAILURE TO ACT.—If the Secretary fails to take final

action under paragraph (5) and to cause notice of the action

to be published in the Federal Register before the expiration

of the 12-month period beginning on the date on which the

proposed revised standard is submitted to the Secretary under

paragraph (4)(A)—

‘‘(A) the Secretary shall appear in person before the

appropriate housing and appropriations subcommittees and

committees of the House of Representatives and the Senate

(referred to in this paragraph as the ‘committees’) on a

date or dates to be specified by the committees, but in

no event later than 30 days after the expiration of that

12-month period, and shall state before the committees

the reasons for failing to take final action as required

under paragraph (5); and ‘‘(B) if the Secretary does not appear in person as

required under subparagraph (A), the Secretary shall thereafter, and until such time as the Secretary does appear

as required under subparagraph (A), be prohibited from

expending any funds collected under authority of this title

in an amount greater than that collected and expended

in the fiscal year immediately preceding the date of the

enactment of the Manufactured Housing Improvement Act

of 2000, indexed for inflation as determined by the Congressional Budget Office.

‘‘(b) OTHER ORDERS.—

‘‘(1) REGULATIONS.—The Secretary may issue procedural

and enforcement regulations and revisions to existing regulations as necessary to implement the provisions of this title.

The consensus committee may submit to the Secretary proposed

procedural and enforcement regulations and recommendations

for the revision of such regulations.

‘‘(2) INTERPRETATIVE BULLETINS.—The Secretary may issue

interpretative bulletins to clarify the meaning of any Federal

manufactured home construction and safety standard or procedural and enforcement regulation. The consensus committee

may submit to the Secretary proposed interpretative bulletins

Deadline.

Federal Register,

publication.

Federal Register,

publication.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3005

to clarify the meaning of any Federal manufactured home

construction and safety standard or procedural and enforcement

regulation.

‘‘(3) REVIEW BY CONSENSUS COMMITTEE.—Before issuing a

procedural or enforcement regulation or an interpretative

bulletin—

‘‘(A) the Secretary shall—

‘‘(i) submit the proposed procedural or enforcement

regulation or interpretative bulletin to the consensus

committee; and

‘‘(ii) provide the consensus committee with a period

of 120 days to submit written comments to the Secretary on the proposed procedural or enforcement regulation or the interpretative bulletin; and

‘‘(B) if the Secretary rejects any significant comment

provided by the consensus committee under subparagraph

(A), the Secretary shall provide a written explanation of

the reasons for the rejection to the consensus committee;

and

‘‘(C) following compliance with subparagraphs (A) and

(B), the Secretary shall—

‘‘(i) cause the proposed regulation or interpretative

bulletin and the consensus committee’s written comments, along with the Secretary’s response thereto,

to be published in the Federal Register; and

‘‘(ii) provide an opportunity for public comment

in accordance with section 553 of title 5, United States

Code.

‘‘(4) REQUIRED ACTION.—Not later than 120 days after the

date on which the Secretary receives a proposed regulation

or interpretative bulletin submitted by the consensus committee, the Secretary shall—

‘‘(A) approve the proposal and cause the proposed regulation or interpretative bulletin to be published for public

comment in accordance with section 553 of title 5, United

States Code; or

‘‘(B) reject the proposed regulation or interpretative

bulletin and—

‘‘(i) provide to the consensus committee a written

explanation of the reasons for rejection; and

‘‘(ii) cause to be published in the Federal Register

the rejected proposed regulation or interpretive bulletin, the reasons for rejection, and any recommended

modifications set forth.

‘‘(5) AUTHORITY TO ACT AND EMERGENCY.—If the Secretary

determines, in writing, that such action is necessary to address

an issue on which the Secretary determines that the consensus

committee has not made a timely recommendation following

a request by the Secretary, or in order to respond to an emergency that jeopardizes the public health or safety, the Secretary

may issue an order that is not developed under the procedures

set forth in subsection (a) or in this subsection, if the

Secretary—

‘‘(A) provides to the consensus committee a written

description and sets forth the reasons why action is necessary and all supporting documentation; and

Federal Register,

publication.

Deadline.

Federal Register,

publication.

114 STAT. 3006 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(B) issues the order after notice and an opportunity

for public comment in accordance with section 553 of title

5, United States Code, and causes the order to be published

in the Federal Register.

‘‘(6) CHANGES.—Any statement of policies, practices, or

procedures relating to construction and safety standards, regulations, inspections, monitoring, or other enforcement activities

that constitutes a statement of general or particular applicability to implement, interpret, or prescribe law or policy by

the Secretary is subject to subsection (a) or this subsection.

Any change adopted in violation of subsection (a) or this subsection is void. ‘‘(7) TRANSITION.—Until the date on which the consensus

committee is appointed pursuant to section 604(a)(3), the Secretary may issue proposed orders, pursuant to notice and comment in accordance with section 553 of title 5, United States

Code, that are not developed under the procedures set forth

in this section for new and revised standards.’’;

(2) in subsection (d), by adding at the end the following: ‘‘Federal preemption under this subsection shall be broadly

and liberally construed to ensure that disparate State or local

requirements or standards do not affect the uniformity and

comprehensiveness of the standards promulgated under this

section nor the Federal superintendence of the manufactured

housing industry as established by this title. Subject to section

605, there is reserved to each State the right to establish

standards for the stabilizing and support systems of manufactured homes sited within that State, and for the foundations

on which manufactured homes sited within that State are

installed, and the right to enforce compliance with such standards, except that such standards shall be consistent with the

purposes of this title and shall be consistent with the design

of the manufacturer.’’;

(3) by striking subsection (e);

(4) in subsection (f ), by striking the subsection designation

and all of the matter that precedes paragraph (1) and inserting

the following:

‘‘(e) CONSIDERATIONS IN ESTABLISHING AND INTERPRETING

STANDARDS AND REGULATIONS.—The consensus committee, in recommending standards, regulations, and interpretations, and the

Secretary, in establishing standards or regulations or issuing

interpretations under this section, shall—’’;

(5) by striking subsection (g);

(6) in the first sentence of subsection ( j), by striking ‘‘subsection (f )’’ and inserting ‘‘subsection (e)’’; and

(7) by redesignating subsections (h), (i), and ( j), as subsections (f ), (g), and (h), respectively.

SEC. 605. ABOLISHMENT OF NATIONAL MANUFACTURED HOME

ADVISORY COUNCIL; MANUFACTURED HOME INSTALLATION.

(a) IN GENERAL.—Section 605 (42 U.S.C. 5404) is amended

to read as follows:

‘‘SEC. 605. MANUFACTURED HOME INSTALLATION.

‘‘(a) PROVISION OF INSTALLATION DESIGN AND INSTRUCTIONS.—

A manufacturer shall provide with each manufactured home, design

and instructions for the installation of the manufactured home

Federal Register,

publication.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3007

that have been approved by a design approval primary inspection

agency. After establishment of model standards under subsection

(b)(2), a design approval primary inspection agency may not give

such approval unless a design and instruction provides equal or

greater protection than the protection provided under such model

standards.

‘‘(b) MODEL MANUFACTURED HOME INSTALLATION STANDARDS.— ‘‘(1) PROPOSED MODEL STANDARDS.—Not later than 18

months after the date on which the initial appointments of

all the members of the consensus committee are completed,

the consensus committee shall develop and submit to the Secretary proposed model manufactured home installation standards, which shall, to the maximum extent practicable, taking

into account the factors described in section 604(e), be consistent with— ‘‘(A) the manufactured home designs that have been

approved by a design approval primary inspection agency;

and ‘‘(B) the designs and instructions for the installation

of manufactured homes provided by manufacturers under

subsection (a).

‘‘(2) ESTABLISHMENT OF MODEL STANDARDS.—Not later than

12 months after receiving the proposed model standards submitted under paragraph (1), the Secretary shall develop and

establish model manufactured home installation standards,

which shall, to the maximum extent practicable, taking into

account the factors described in section 604(e), be consistent

with—

‘‘(A) the manufactured home designs that have been

approved by a design approval primary inspection agency;

and

‘‘(B) the designs and instructions for the installation

of manufactured homes provided by manufacturers under

subsection (a).

‘‘(3) FACTORS FOR CONSIDERATION.— ‘‘(A) CONSENSUS COMMITTEE.—In developing the proposed model standards under paragraph (1), the consensus

committee shall consider the factors described in section

604(e).

‘‘(B) SECRETARY.—In developing and establishing the

model standards under paragraph (2), the Secretary shall

consider the factors described in section 604(e).

‘‘(4) ISSUANCE.—The model manufactured home installation

standards shall be issued after notice and an opportunity for

public comment in accordance with section 553 of title 5, United

States Code.

‘‘(c) MANUFACTURED HOME INSTALLATION PROGRAMS.—

‘‘(1) PROTECTION OF MANUFACTURED HOUSING RESIDENTS

DURING INITIAL PERIOD.—During the 5-year period beginning

on the date of the enactment of the Manufactured Housing

Improvement Act of 2000, no State or manufacturer may establish or implement any installation standards that, in the determination of the Secretary, provide less protection to the residents of manufactured homes than the protection provided

by the installation standards in effect with respect to the State

or manufacturer, as applicable, on the date of the enactment

of the Manufactured Housing Improvement Act of 2000.

Deadline.

114 STAT. 3008 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(2) INSTALLATION STANDARDS.—

‘‘(A) ESTABLISHMENT OF INSTALLATION PROGRAM.—Not

later than the expiration of the 5-year period described

in paragraph (1), the Secretary shall establish an installation program that meets the requirements of paragraph

(3) for the enforcement of installation standards in each

State described in subparagraph (B) of this paragraph.

‘‘(B) IMPLEMENTATION OF INSTALLATION PROGRAM.—

Beginning on the expiration of the 5-year period described

in paragraph (1), the Secretary shall implement the

installation program established under subparagraph (A)

in each State that does not have an installation program

established by State law that meets the requirements of

paragraph (3).

‘‘(C) CONTRACTING OUT OF IMPLEMENTATION.—In carrying out subparagraph (B), the Secretary may contract

with an appropriate agent to implement the installation

program established under that subparagraph, except that

such agent shall not be a person or entity other than

a government, nor an affiliate or subsidiary of such a

person or entity, that has entered into a contract with

the Secretary to implement any other regulatory program

under this title.

‘‘(3) REQUIREMENTS.—An installation program meets the

requirements of this paragraph if it is a program regulating

the installation of manufactured homes that includes—

‘‘(A) installation standards that, in the determination

of the Secretary, provide protection to the residents of

manufactured homes that equals or exceeds the protection

provided to those residents by—

‘‘(i) the model manufactured home installation

standards established by the Secretary under subsection (b)(2); or

‘‘(ii) the designs and instructions provided by

manufacturers under subsection (a), if the Secretary

determines that such designs and instructions provide

protection to the residents of manufactured homes that

equals or exceeds the protection provided by the model

manufactured home installation standards established

by the Secretary under subsection (b)(2);

‘‘(B) the training and licensing of manufactured home

installers; and

‘‘(C) inspection of the installation of manufactured

homes.’’.

(b) CONFORMING AMENDMENTS.—Section 623(c) (42 U.S.C.

5422(c)) is amended—

(1) in paragraph (10), by striking ‘‘and’’ at the end;

(2) by redesignating paragraph (11) as paragraph (13);

and

(3) by inserting after paragraph (10) the following:

‘‘(11) with respect to any State plan submitted on or after

the expiration of the 5-year period beginning on the date of

the enactment of the Manufactured Housing Improvement Act

of 2000, provides for an installation program established by

State law that meets the requirements of section 605(c)(3);’’.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3009

SEC. 606. PUBLIC INFORMATION.

Section 607 (42 U.S.C. 5406) is amended—

(1) in subsection (a)—

(A) by inserting ‘‘to the Secretary’’ after ‘‘submit’’; and

(B) by adding at the end the following: ‘‘The Secretary

shall submit such cost and other information to the consensus committee for evaluation.’’;

(2) in subsection (d), by inserting ‘‘, the consensus committee,’’ after ‘‘public’’; and

(3) by striking subsection (c) and redesignating subsections

(d) and (e) as subsections (c) and (d), respectively.

SEC. 607. RESEARCH, TESTING, DEVELOPMENT, AND TRAINING.

(a) IN GENERAL.—Section 608(a) (42 U.S.C. 5407(a)) is

amended—

(1) in paragraph (2), by striking ‘‘and’’ at the end;

(2) in paragraph (3), by striking the period at the end

and inserting a semicolon; and

(3) by adding at the end the following:

‘‘(4) encouraging the government-sponsored housing entities

to actively develop and implement secondary market

securitization programs for the FHA manufactured home loans

and those of other loan programs, as appropriate, thereby promoting the availability of affordable manufactured homes to

increase homeownership for all people in the United States;

and ‘‘(5) reviewing the programs for FHA manufactured home

loans and developing any changes to such programs to promote

the affordability of manufactured homes, including changes

in loan terms, amortization periods, regulations, and procedures.’’. (b) DEFINITIONS.—Section 608 (42 U.S.C. 5407) is amended

by adding at the end the following:

‘‘(c) DEFINITIONS.—For purposes of this section, the following

definitions shall apply:

‘‘(1) GOVERNMENT-SPONSORED HOUSING ENTITIES.—The

term ‘government-sponsored housing entities’ means the

Government National Mortgage Association of the Department

of Housing and Urban Development, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation.

‘‘(2) FHA MANUFACTURED HOME LOAN.—The term ‘FHA

manufactured home loan’ means a loan that—

‘‘(A) is insured under title I of the National Housing

Act and is made for the purpose of financing alterations,

repairs, or improvements on or in connection with an

existing manufactured home, the purchase of a manufactured home, the purchase of a manufactured home and

a lot on which to place the home, or the purchase only

of a lot on which to place a manufactured home; or

‘‘(B) is otherwise insured under the National Housing

Act and made for or in connection with a manufactured

home.’’.

SEC. 608. PROHIBITED ACTS.

Section 610(a) (42 U.S.C. 5409(a)) is amended—

(1) in paragraph (5), by striking ‘‘or’’ at the end;

114 STAT. 3010 PUBLIC LAW 106–569—DEC. 27, 2000

(2) in paragraph (6), by striking the period at the end

and inserting ‘‘; or’’; and

(3) by adding at the end the following new paragraph:

‘‘(7) after the expiration of the period specified in section

605(c)(2)(B), fail to comply with the requirements for the

installation program required by section 605 in any State that

has not adopted and implemented a State installation program.’’.

SEC. 609. FEES.

Section 620 (42 U.S.C. 5419) is amended to read as follows:

‘‘SEC. 620. AUTHORITY TO COLLECT FEE.

‘‘(a) IN GENERAL.—In carrying out inspections under this title,

in developing standards and regulations pursuant to section 604,

and in facilitating the acceptance of the affordability and availability

of manufactured housing within the Department, the Secretary

may—

‘‘(1) establish and collect from manufactured home manufacturers a reasonable fee, as may be necessary to offset the

expenses incurred by the Secretary in connection with carrying

out the responsibilities of the Secretary under this title,

including—

‘‘(A) conducting inspections and monitoring;

‘‘(B) providing funding to States for the administration

and implementation of approved State plans under section

623, including reasonable funding for cooperative educational and training programs designed to facilitate uniform enforcement under this title, which funds may be

paid directly to the States or may be paid or provided

to any person or entity designated to receive and disburse

such funds by cooperative agreements among participating

States, provided that such person or entity is not otherwise

an agent of the Secretary under this title;

‘‘(C) providing the funding for a noncareer administrator within the Department to administer the manufactured housing program;

‘‘(D) providing the funding for salaries and expenses

of employees of the Department to carry out the manufactured housing program;

‘‘(E) administering the consensus committee as set

forth in section 604;

‘‘(F) facilitating the acceptance of the quality, durability, safety, and affordability of manufactured housing

within the Department; and

‘‘(G) the administration and enforcement of the

installation standards authorized by section 605 in States

in which the Secretary is required to implement an installation program after the expiration of the 5-year period set

forth in section 605(c)(2)(B), and the administration and

enforcement of a dispute resolution program described in

section 623(c)(12) in States in which the Secretary is

required to implement such a program after the expiration

of the 5-year period set forth in section 623(g)(2); and

‘‘(2) subject to subsection (e), use amounts from any fee

collected under paragraph (1) of this subsection to pay expenses

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3011

referred to in that paragraph, which shall be exempt and separate from any limitations on the Department regarding fulltime equivalent positions and travel.

‘‘(b) CONTRACTORS.—In using amounts from any fee collected

under this section, the Secretary shall ensure that separate and

independent contractors are retained to carry out monitoring and

inspection work and any other work that may be delegated to

a contractor under this title. ‘‘(c) PROHIBITED USE.—No amount from any fee collected under

this section may be used for any purpose or activity not specifically

authorized by this title, unless such activity was already engaged

in by the Secretary prior to the date of the enactment of the

Manufactured Housing Improvement Act of 2000. ‘‘(d) MODIFICATION.—Beginning on the date of the enactment

of the Manufactured Housing Improvement Act of 2000, the amount

of any fee collected under this section may only be modified— ‘‘(1) as specifically authorized in advance in an annual

appropriations Act; and ‘‘(2) pursuant to rulemaking in accordance with section

553 of title 5, United States Code.

‘‘(e) APPROPRIATION AND DEPOSIT OF FEES.—

‘‘(1) IN GENERAL.—There is established in the Treasury

of the United States a fund to be known as the ‘Manufactured

Housing Fees Trust Fund’ for deposit of amounts from any

fee collected under this section. Such amounts shall be held

in trust for use only as provided in this title.

‘‘(2) APPROPRIATION.—Amounts from any fee collected under

this section shall be available for expenditure only to the extent

approved in advance in an annual appropriations Act. Any

change in the expenditure of such amounts shall be specifically

authorized in advance in an annual appropriations Act.

‘‘(3) PAYMENTS TO STATES.—On and after the effective date

of the Manufactured Housing Improvement Act of 2000, the

Secretary shall continue to fund the States having approved

State plans in the amounts which are not less than the allocated

amounts, based on the fee distribution system in effect on

the day before such effective date.’’.

SEC. 610. DISPUTE RESOLUTION.

Section 623(c) (42 U.S.C. 5422(c)) is amended—

(1) by inserting after paragraph (11) (as added by the

preceding provisions of this title) the following:

‘‘(12) with respect to any State plan submitted on or after

the expiration of the 5-year period beginning on the date of

the enactment of the Manufactured Housing Improvement Act

of 2000, provides for a dispute resolution program for the

timely resolution of disputes between manufacturers, retailers,

and installers of manufactured homes regarding responsibility,

and for the issuance of appropriate orders, for the correction

or repair of defects in manufactured homes that are reported

during the 1-year period beginning on the date of installation;

and’’; and

(2) by adding at the end the following:

‘‘(g) ENFORCEMENT OF DISPUTE RESOLUTION STANDARDS.—

‘‘(1) ESTABLISHMENT OF DISPUTE RESOLUTION PROGRAM.— Not later than the expiration of the 5-year period beginning

on the date of the enactment of the Manufactured Housing

Deadline.

Effective date.

114 STAT. 3012 PUBLIC LAW 106–569—DEC. 27, 2000

Improvement Act of 2000, the Secretary shall establish a dispute resolution program that meets the requirements of subsection (c)(12) for dispute resolution in each State described

in paragraph (2) of this subsection. The order establishing

the dispute resolution program shall be issued after notice

and opportunity for public comment in accordance with section

553 of title 5, United States Code.

‘‘(2) IMPLEMENTATION OF DISPUTE RESOLUTION PROGRAM.—

Beginning on the expiration of the 5-year period described

in paragraph (1), the Secretary shall implement the dispute

resolution program established under paragraph (1) in each

State that has not established a dispute resolution program

that meets the requirements of subsection (c)(12).

‘‘(3) CONTRACTING OUT OF IMPLEMENTATION.—In carrying

out paragraph (2), the Secretary may contract with an appropriate agent to implement the dispute resolution program established under paragraph (2), except that such agent shall not

be a person or entity other than a government, nor an affiliate

or subsidiary of such a person or entity, that has entered

into a contract with the Secretary to implement any other

regulatory program under this title.’’.

SEC. 611. ELIMINATION OF ANNUAL REPORTING REQUIREMENT.

The National Manufactured Housing Construction and Safety

Standards Act of 1974 (42 U.S.C. 5401 et seq.) is amended—

(1) by striking section 626 (42 U.S.C. 5425); and

(2) by redesignating sections 627 and 628 (42 U.S.C. 5426,

5401 note) as sections 626 and 627, respectively.

SEC. 612. EFFECTIVE DATE.

The amendments made by this title shall take effect on the

date of the enactment of this Act, except that the amendments

shall have no effect on any order or interpretative bulletin that

is issued under the National Manufactured Housing Construction

and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.) and

published as a proposed rule pursuant to section 553 of title 5,

United States Code, on or before that date of the enactment.

SEC. 613. SAVINGS PROVISIONS.

(a) STANDARDS AND REGULATIONS.—The Federal manufactured

home construction and safety standards (as such term is defined

in section 603 of the National Manufactured Housing Construction

and Safety Standards Act of 1974) and all regulations pertaining

thereto in effect on the day before the date of the enactment

of this Act shall apply until the effective date of a standard or

regulation modifying or superseding the existing standard or regulation that is promulgated under subsection (a) or (b) of section

604 of the National Manufactured Housing Construction and Safety

Standards Act of 1974, as amended by this title.

(b) CONTRACTS.—Any contract awarded pursuant to a Request

for Proposal issued before the date of the enactment of this Act

shall remain in effect until the earlier of—

(1) the expiration of the 2-year period beginning on the

date of the enactment of this Act; or

(2) the expiration of the contract term.

Applicability.

42 USC 5401

note.

42 USC 5401

note.

Effective date.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3013

TITLE VII—RURAL HOUSING

HOMEOWNERSHIP

SEC. 701. GUARANTEES FOR REFINANCING OF RURAL HOUSING LOANS.

Section 502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h))

is amended by adding at the end the following new paragraph:

‘‘(13) GUARANTEES FOR REFINANCING LOANS.—

‘‘(A) IN GENERAL.—Upon the request of the borrower,

the Secretary shall, to the extent provided in appropriation

Acts and subject to subparagraph (F), guarantee a loan

that is made to refinance an existing loan that is made

under this section or guaranteed under this subsection,

and that the Secretary determines complies with the

requirements of this paragraph.

‘‘(B) INTEREST RATE.—To be eligible for a guarantee

under this paragraph, the refinancing loan shall have a

rate of interest that is fixed over the term of the loan

and does not exceed the interest rate of the loan being

refinanced.

‘‘(C) SECURITY.—To be eligible for a guarantee under

this paragraph, the refinancing loan shall be secured by

the same single-family residence as was the loan being

refinanced, which shall be owned by the borrower and

occupied by the borrower as the principal residence of

the borrower.

‘‘(D) AMOUNT.—To be eligible for a guarantee under

this paragraph, the principal obligation under the refinancing loan shall not exceed an amount equal to the

sum of the balance of the loan being refinanced and such

closing costs as may be authorized by the Secretary, which

shall include a discount not exceeding 200 basis points

and an origination fee not exceeding such amount as the

Secretary shall prescribe.

‘‘(E) OTHER REQUIREMENTS.—The provisions of the last

sentence of paragraph (1) and paragraphs (2), (5), (6)(A),

(7), and (9) shall apply to loans guaranteed under this

paragraph, and no other provisions of paragraphs (1)

through (12) shall apply to such loans.

‘‘(F) AUTHORITY TO ESTABLISH LIMITATION.—The Secretary may establish limitations on the number of loans

guaranteed under this paragraph, which shall be based

on market conditions and other factors as the Secretary

considers appropriate.’’.

SEC. 702. PROMISSORY NOTE REQUIREMENT UNDER HOUSING REPAIR

LOAN PROGRAM.

The fourth sentence of section 504(a) of the Housing Act of

1949 (42 U.S.C. 1474(a)) is amended by striking ‘‘$2,500’’ and

inserting ‘‘$7,500’’.

SEC. 703. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM LABOR

HOUSING LOANS.

The first sentence of section 514(a) of the Housing Act of

1949 (42 U.S.C. 1484(a)) is amended by striking ‘‘nonprofit limited

partnership’’ and inserting ‘‘limited partnership’’.

Applicability.

114 STAT. 3014 PUBLIC LAW 106–569—DEC. 27, 2000

SEC. 704. PROJECT ACCOUNTING RECORDS AND PRACTICES.

Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is

amended by striking subsection (z) and inserting the following

new subsections: ‘‘(z) ACCOUNTING AND RECORDKEEPING REQUIREMENTS.— ‘‘(1) ACCOUNTING STANDARDS.—The Secretary shall require

that borrowers in programs authorized by this section maintain

accounting records in accordance with generally accepted

accounting principles for all projects that receive funds from

loans made or guaranteed by the Secretary under this section. ‘‘(2) RECORD RETENTION REQUIREMENTS.—The Secretary

shall require that borrowers in programs authorized by this

section retain for a period of not less than 6 years and make

available to the Secretary in a manner determined by the

Secretary, all records required to be maintained under this

subsection and other records identified by the Secretary in

applicable regulations.

‘‘(aa) DOUBLE DAMAGES FOR UNAUTHORIZED USE OF HOUSING

PROJECTS ASSETS AND INCOME.— ‘‘(1) ACTION TO RECOVER ASSETS OR INCOME.— ‘‘(A) IN GENERAL.—The Secretary may request the

Attorney General to bring an action in a United States

district court to recover any assets or income used by

any person in violation of the provisions of a loan made

or guaranteed by the Secretary under this section or in

violation of any applicable statute or regulation.

‘‘(B) IMPROPER DOCUMENTATION.—For purposes of this

subsection, a use of assets or income in violation of the

applicable loan, loan guarantee, statute, or regulation shall

include any use for which the documentation in the books

and accounts does not establish that the use was made

for a reasonable operating expense or necessary repair

of the project or for which the documentation has not

been maintained in accordance with the requirements of

the Secretary and in reasonable condition for proper audit. ‘‘(C) DEFINITION.—For the purposes of this subsection,

the term ‘person’ means—

‘‘(i) any individual or entity that borrows funds

in accordance with programs authorized by this section;

‘‘(ii) any individual or entity holding 25 percent

or more interest of any entity that borrows funds in

accordance with programs authorized by this section;

and

‘‘(iii) any officer, director, or partner of an entity

that borrows funds in accordance with programs

authorized by this section.

‘‘(2) AMOUNT RECOVERABLE.—

‘‘(A) IN GENERAL.—In any judgment favorable to the

United States entered under this subsection, the Attorney

General may recover double the value of the assets and

income of the project that the court determines to have

been used in violation of the provisions of a loan made

or guaranteed by the Secretary under this section or any

applicable statute or regulation, plus all costs related to

the action, including reasonable attorney and auditing fees.

‘‘(B) APPLICATION OF RECOVERED FUNDS.—Notwithstanding any other provision of law, the Secretary may

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3015

use amounts recovered under this subsection for activities

authorized under this section and such funds shall remain

available for such use until expended.

‘‘(3) TIME LIMITATION.—Notwithstanding any other provision of law, an action under this subsection may be commenced

at any time during the 6-year period beginning on the date

that the Secretary discovered or should have discovered the

violation of the provisions of this section or any related statutes

or regulations. ‘‘(4) CONTINUED AVAILABILITY OF OTHER REMEDIES.—The

remedy provided in this subsection is in addition to and not

in substitution of any other remedies available to the Secretary

or the United States.’’.

SEC. 705. DEFINITION OF RURAL AREA.

The second sentence of section 520 of the Housing Act of 1949

(42 U.S.C. 1490) is amended— (1) by striking ‘‘1990 decennial census’’ and inserting ‘‘1990

or 2000 decennial census’’; and

(2) by striking ‘‘year 2000’’ and inserting ‘‘year 2010’’.

SEC. 706. OPERATING ASSISTANCE FOR MIGRANT FARMWORKERS

PROJECTS.

The last sentence of section 521(a)(5)(A) of the Housing Act

of 1949 (42 U.S.C. 1490a(a)(5)(A)) is amended by striking ‘‘project’’

and inserting ‘‘tenant or unit’’.

SEC. 707. MULTIFAMILY RENTAL HOUSING LOAN GUARANTEE PROGRAM.

Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p–

2) is amended—

(1) in subsection (c), by inserting ‘‘an Indian tribe,’’ after

‘‘thereof,’’;

(2) in subsection (f ), by striking paragraph (1) and inserting

the following new paragraph:

‘‘(1) be made for a period of not less than 25 nor greater

than 40 years from the date the loan was made and may

provide for amortization of the loan over a period of not to

exceed 40 years with a final payment of the balance due at

the end of the loan term;’’;

(3) in subsection (i)(2), by striking ‘‘(A) conveyance to the

Secretary’’ and all that follows through ‘‘(C) assignment’’ and

inserting ‘‘(A) submission to the Secretary of a claim for payment under the guarantee, and (B) assignment’’;

(4) in subsection (s), by adding at the end the following

new subsection:

‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’ means—

‘‘(A) any Indian tribe, band, nation, or other organized

group or community of Indians, including any Alaska

Native village or regional or village corporation, as defined

by or established pursuant to the Alaska Native Claims

Settlement Act (43 U.S.C. 1601 et seq.), that is recognized

as eligible for the special programs and services provided

by the United States to Indians because of their status

as Indians pursuant to the Indian Self-Determination and

Education Assistance Act of 1975 (25 U.S.C. 450 et seq.);

or

114 STAT. 3016 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(B) any entity established by the governing body of

an Indian tribe described in subparagraph (A) for the purpose of financing economic development.’’;

(5) in subsection (t), by inserting before the period at the

end the following: ‘‘to provide guarantees under this section

for eligible loans having an aggregate principal amount of

$500,000,000’’;

(6) by striking subsection (l);

(7) by redesignating subsections (m) through (u) as subsections (l) through (t), respectively; and

(8) by adding at the end the following new subsections:

‘‘(u) FEE AUTHORITY.—Any amounts collected by the Secretary

pursuant to the fees charged to lenders for loan guarantees issued

under this section shall be used to offset costs (as defined by

section 502 of the Congressional Budget Act of 1974 (2 U.S.C.

661a)) of loan guarantees made under this section. ‘‘(v) DEFAULTS OF LOANS SECURED BY RESERVATION LANDS.—

In the event of a default involving a loan to an Indian tribe or

tribal corporation made under this section which is secured by

an interest in land within such tribe’s reservation (as determined

by the Secretary of the Interior), including a community in Alaska

incorporated by the Secretary of the Interior pursuant to the Indian

Reorganization Act (25 U.S.C. 461 et seq.), the lender shall only

pursue liquidation after offering to transfer the account to an

eligible tribal member, the tribe, or the Indian housing authority

serving the tribe. If the lender subsequently proceeds to liquidate

the account, the lender shall not sell, transfer, or otherwise dispose

of or alienate the property except to one of the entities described

in the preceding sentence.’’.

SEC. 708. ENFORCEMENT PROVISIONS.

(a) IN GENERAL.—Title V of the Housing Act of 1949 (42 U.S.C.

1471 et seq.) is amended by adding after section 542 the following:

‘‘SEC. 543. ENFORCEMENT PROVISIONS.

‘‘(a) EQUITY SKIMMING.—

‘‘(1) CRIMINAL PENALTY.—Whoever, as an owner, agent,

employee, or manager, or is otherwise in custody, control, or

possession of property that is security for a loan made or

guaranteed under this title, willfully uses, or authorizes the

use, of any part of the rents, assets, proceeds, income, or

other funds derived from such property, for any purpose other

than to meet actual, reasonable, and necessary expenses of

the property, or for any other purpose not authorized by this

title or the regulations adopted pursuant to this title, shall

be fined under title 18, United States Code, or imprisoned

not more than 5 years, or both.

‘‘(2) CIVIL SANCTIONS.—An entity or individual who as an

owner, operator, employee, or manager, or who acts as an

agent for a property that is security for a loan made or guaranteed under this title where any part of the rents, assets, proceeds, income, or other funds derived from such property are

used for any purpose other than to meet actual, reasonable,

and necessary expenses of the property, or for any other purpose

not authorized by this title or the regulations adopted pursuant

to this title, shall be subject to a fine of not more than $25,000

per violation. The sanctions provided in this paragraph may

42 USC 14905.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3017

be imposed in addition to any other civil sanctions or civil

monetary penalties authorized by law.

‘‘(b) CIVIL MONETARY PENALTIES.—

‘‘(1) IN GENERAL.—The Secretary may, after notice and

opportunity for a hearing, impose a civil monetary penalty

in accordance with this subsection against any individual or

entity, including its owners, officers, directors, general partners,

limited partners, or employees, who knowingly and materially

violate, or participate in the violation of, the provisions of

this title, the regulations issued by the Secretary pursuant

to this title, or agreements made in accordance with this title,

by—

‘‘(A) submitting information to the Secretary that is

false;

‘‘(B) providing the Secretary with false certifications;

‘‘(C) failing to submit information requested by the

Secretary in a timely manner;

‘‘(D) failing to maintain the property subject to loans

made or guaranteed under this title in good repair and

condition, as determined by the Secretary;

‘‘(E) failing to provide management for a project which

received a loan made or guaranteed under this title that

is acceptable to the Secretary; or

‘‘(F) failing to comply with the provisions of applicable

civil rights statutes and regulations.

‘‘(2) CONDITIONS FOR RENEWAL OR EXTENSION.—The Secretary may require that expiring loan or assistance agreements

entered into under this title shall not be renewed or extended

unless the owner executes an agreement to comply with additional conditions prescribed by the Secretary, or executes a

new loan or assistance agreement in the form prescribed by

the Secretary.

‘‘(3) AMOUNT.—

‘‘(A) IN GENERAL.—The amount of a civil monetary

penalty imposed under this subsection shall not exceed

the greater of—

‘‘(i) twice the damages the Department of Agriculture, the guaranteed lender, or the project that is

secured for a loan under this section suffered or would

have suffered as a result of the violation; or

‘‘(ii) $50,000 per violation.

‘‘(B) DETERMINATION.—In determining the amount of

a civil monetary penalty under this subsection, the Secretary shall take into consideration—

‘‘(i) the gravity of the offense;

‘‘(ii) any history of prior offenses by the violator

(including offenses occurring prior to the enactment

of this section);

‘‘(iii) the ability of the violator to pay the penalty;

‘‘(iv) any injury to tenants;

‘‘(v) any injury to the public;

‘‘(vi) any benefits received by the violator as a

result of the violation;

‘‘(vii) deterrence of future violations; and

‘‘(viii) such other factors as the Secretary may

establish by regulation.

114 STAT. 3018 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(4) PAYMENT OF PENALTIES.—No payment of a penalty

assessed under this section may be made from funds provided

under this title or from funds of a project which serve as

security for a loan made or guaranteed under this title.

‘‘(5) REMEDIES FOR NONCOMPLIANCE.—

‘‘(A) JUDICIAL INTERVENTION.—If a person or entity

fails to comply with a final determination by the Secretary

imposing a civil monetary penalty under this subsection,

the Secretary may request the Attorney General of the

United States to bring an action in an appropriate United

States district court to obtain a monetary judgment against

such individual or entity and such other relief as may

be available. The monetary judgment may, in the court’s

discretion, include the attorney’s fees and other expenses

incurred by the United States in connection with the action.

‘‘(B) REVIEWABILITY OF DETERMINATION.—In an action

under this paragraph, the validity and appropriateness

of a determination by the Secretary imposing the penalty

shall not be subject to review.’’.

(b) CONFORMING AMENDMENT.—Section 514 of the Housing Act

of 1949 (42 U.S.C. 1484) is amended by striking subsection ( j).

SEC. 709. AMENDMENTS TO TITLE 18 OF UNITED STATES CODE.

(a) MONEY LAUNDERING.—Section 1956(c)(7)(D) of title 18,

United States Code, is amended by inserting ‘‘any violation of

section 543(a)(1) of the Housing Act of 1949 (relating to equity

skimming),’’ after ‘‘coupons having a value of not less than $5,000,’’.

(b) OBSTRUCTION OF FEDERAL AUDITS.—Section 1516(a) of title

18, United States Code, is amended by inserting ‘‘or relating to

any property that is security for a loan that is made or guaranteed

under title V of the Housing Act of 1949,’’ before ‘‘shall be fined

under this title’’.

TITLE VIII—HOUSING FOR ELDERLY

AND DISABLED FAMILIES

SEC. 801. SHORT TITLE.

This title may be cited as the ‘‘Affordable Housing for Seniors

and Families Act’’.

SEC. 802. REGULATIONS.

The Secretary of Housing and Urban Development (referred

to in this title as the ‘‘Secretary’’) shall issue any regulations to

carry out this title and the amendments made by this title that

the Secretary determines may or will affect tenants of federally

assisted housing only after notice and opportunity for public comment in accordance with the procedure under section 553 of title

5, United States Code, applicable to substantive rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section). Notice

of such proposed rulemaking shall be provided by publication in

the Federal Register. In issuing such regulations, the Secretary

shall take such actions as may be necessary to ensure that such

tenants are notified of, and provided an opportunity to participate

in, the rulemaking, as required by such section 553.

Federal Register,

publication.

12 USC 1701

note.

12 USC 1701

note.

Affordable

Housing for

Seniors and

Families Act.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3019

SEC. 803. EFFECTIVE DATE.

(a) IN GENERAL.—The provisions of this title and the amendments made by this title are effective as of the date of the enactment

of this Act, unless such provisions or amendments specifically provide for effectiveness or applicability upon another date certain.

(b) EFFECT OF REGULATORY AUTHORITY.—Any authority in this

title or the amendments made by this title to issue regulations,

and any specific requirement to issue regulations by a date certain,

may not be construed to affect the effectiveness or applicability

of the provisions of this title or the amendments made by this

title under such provisions and amendments and subsection (a)

of this section.

Subtitle A—Refinancing for Section 202

Supportive Housing for the Elderly

SEC. 811. PREPAYMENT AND REFINANCING.

(a) APPROVAL OF PREPAYMENT OF DEBT.—Upon request of the

project sponsor of a project assisted with a loan under section

202 of the Housing Act of 1959 (as in effect before the enactment

of the Cranston-Gonzalez National Affordable Housing Act), the

Secretary shall approve the prepayment of any indebtedness to

the Secretary relating to any remaining principal and interest under

the loan as part of a prepayment plan under which—

(1) the project sponsor agrees to operate the project until

the maturity date of the original loan under terms at least

as advantageous to existing and future tenants as the terms

required by the original loan agreement or any rental assistance

payments contract under section 8 of the United States Housing

Act of 1937 (or any other rental housing assistance programs

of the Department of Housing and Urban Development,

including the rent supplement program under section 101 of

the Housing and Urban Development Act of 1965 (12 U.S.C.

1701s)) relating to the project; and

(2) the prepayment may involve refinancing of the loan

if such refinancing results in a lower interest rate on the

principal of the loan for the project and in reductions in debt

service related to such loan.

(b) SOURCES OF REFINANCING.—In the case of prepayment

under this section involving refinancing, the project sponsor may

refinance the project through any third party source, including

financing by State and local housing finance agencies, use of taxexempt bonds, multi-family mortgage insurance under the National

Housing Act, reinsurance, or other credit enhancements, including

risk sharing as provided under section 542 of the Housing and

Community Development Act of 1992 (12 U.S.C. 1707 note). For

purposes of underwriting a loan insured under the National Housing

Act, the Secretary may assume that any section 8 rental assistance

contract relating to a project will be renewed for the term of

such loan.

(c) USE OF UNEXPENDED AMOUNTS.—Upon execution of the

refinancing for a project pursuant to this section, the Secretary

shall make available at least 50 percent of the annual savings

resulting from reduced section 8 or other rental housing assistance

12 USC 1701q

note.

12 USC 1701q

note.

114 STAT. 3020 PUBLIC LAW 106–569—DEC. 27, 2000

contracts in a manner that is advantageous to the tenants,

including—

(1) not more than 15 percent of the cost of increasing

the availability or provision of supportive services, which may

include the financing of service coordinators and congregate

services;

(2) rehabilitation, modernization, or retrofitting of structures, common areas, or individual dwelling units;

(3) construction of an addition or other facility in the

project, including assisted living facilities (or, upon the approval

of the Secretary, facilities located in the community where

the project sponsor refinances a project under this section,

or pools shared resources from more than one such project);

or

(4) rent reduction of unassisted tenants residing in the

project according to a pro rata allocation of shared savings

resulting from the refinancing.

(d) USE OF CERTAIN PROJECT FUNDS.—The Secretary shall allow

a project sponsor that is prepaying and refinancing a project under

this section—

(1) to use any residual receipts held for that project in

excess of $500 per individual dwelling unit for not more than

15 percent of the cost of activities designed to increase the

availability or provision of supportive services; and

(2) to use any reserves for replacement in excess of $1,000

per individual dwelling unit for activities described in paragraphs (2) and (3) of subsection (c).

(e) BUDGET ACT COMPLIANCE.—This section shall be effective

only to extent or in such amounts that are provided in advance

in appropriation Acts.

Subtitle B—Authorization of Appropriations for Supportive Housing for the Elderly and Persons With Disabilities

SEC. 821. SUPPORTIVE HOUSING FOR ELDERLY PERSONS.

Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q)

is amended by adding at the end the following:

‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated for providing assistance under this section

such sums as may be necessary for each of fiscal years 2001,

2002, and 2003.’’.

SEC. 822. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.

Section 811 of the Cranston-Gonzalez National Affordable

Housing Act (42 U.S.C. 8013) is amended by striking subsection

(m) and inserting the following:

‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated for providing assistance under this section

such sums as may be necessary for each of fiscal years 2001,

2002, and 2003.’’.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3021

SEC. 823. SERVICE COORDINATORS AND CONGREGATE SERVICES FOR

ELDERLY AND DISABLED HOUSING.

There are authorized to be appropriated to the Secretary such

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

and 2003, for the following purposes:

(1) GRANTS FOR SERVICE COORDINATORS FOR CERTAIN FED- ERALLY ASSISTED MULTIFAMILY HOUSING.—For grants under section 676 of the Housing and Community Development Act

of 1992 (42 U.S.C. 13632) for providing service coordinators.

(2) CONGREGATE SERVICES FOR FEDERALLY ASSISTED

HOUSING.—For contracts under section 802 of the CranstonGonzalez National Affordable Housing Act (42 U.S.C. 8011)

to provide congregate services programs for eligible residents

of eligible housing projects under subparagraphs (B) through

(D) of subsection (k)(6) of such section.

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.

Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C.

1701q(k)(4)) is amended by inserting after subparagraph (C) the

following:

‘‘Such term includes a for-profit limited partnership the sole

general partner of which is an organization meeting the requirements under subparagraphs (A), (B), and (C), or a corporation

wholly owned and controlled by an organization meeting the

requirements under subparagraphs (A), (B), and (C).’’.

SEC. 832. MIXED FUNDING SOURCES.

Section 202(h)(6) of the Housing Act of 1959 (12 U.S.C.

1701q(h)(6)) is amended—

(1) by striking ‘‘non-Federal sources’’ and inserting ‘‘sources

other than this section’’; and

(2) by adding at the end the following new sentence: ‘‘Notwithstanding any other provision of law, assistance amounts

provided under this section may be treated as amounts not

derived from a Federal grant.’’.

SEC. 833. AUTHORITY TO ACQUIRE STRUCTURES.

Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q)

is amended—

(1) in subsection (b), by striking ‘‘from the Resolution Trust

Corporation’’; and

(2) in subsection (h)(2)—

(A) in the paragraph heading, by striking ‘‘RTC PROP- ERTIES’’ and inserting ‘‘ACQUISITION’’; and

(B) by striking ‘‘from the Resolution’’ and all that follows through ‘‘Insurance Act’’.

SEC. 834. USE OF PROJECT RESERVES.

Section 202( j) of the Housing Act of 1959 (12 U.S.C. 1701q( j))

is amended by adding at the end the following:

114 STAT. 3022 PUBLIC LAW 106–569—DEC. 27, 2000

‘‘(8) USE OF PROJECT RESERVES.—Amounts for project

reserves for a project assisted under this section may be used

for costs, subject to reasonable limitations as the Secretary

determines appropriate, for reducing the number of dwelling

units in the project. Such use shall be subject to the approval

of the Secretary to ensure that the use is designed to retrofit

units that are currently obsolete or unmarketable.’’.

SEC. 835. COMMERCIAL ACTIVITIES.

Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C.

1701q(h)(1)) is amended by adding at the end the following: ‘‘Neither

this section nor any other provision of law may be construed as

prohibiting or preventing the location and operation, in a project

assisted under this section, of commercial facilities for the benefit

of residents of the project and the community in which the project

is located, except that assistance made available under this section

may not be used to subsidize any such commercial facility.’’.

PART 2—HOUSING FOR PERSONS WITH

DISABILITIES

SEC. 841. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS.

Section 811(k)(6) of the Housing Act of 1959 (42 U.S.C.

8013(k)(6)) is amended by inserting after subparagraph (D) the

following:

‘‘Such term includes a for-profit limited partnership the sole

general partner of which is an organization meeting the requirements under subparagraphs (A), (B), (C), and (D) or a corporation wholly owned and controlled by an organization meeting

the requirements under subparagraphs (A), (B), (C), and (D).’’.

SEC. 842. MIXED FUNDING SOURCES.

Section 811(h)(5) of the Cranston-Gonzalez National Affordable

Housing Act (42 U.S.C. 8013(h)(5)) is amended— (1) by striking ‘‘non-Federal sources’’ and inserting ‘‘sources

other than this section’’; and

(2) by adding at the end the following new sentence: ‘‘Notwithstanding any other provision of law, assistance amounts

provided under this section may be treated as amounts not

derived from a Federal grant.’’.

SEC. 843. TENANT-BASED ASSISTANCE.

Section 811 of the Cranston-Gonzalez National Affordable

Housing Act (42 U.S.C. 8013) is amended—

(1) in subsection (d), by striking paragraph (4) and inserting

the following:

‘‘(4) TENANT-BASED RENTAL ASSISTANCE.—

‘‘(A) ADMINISTERING ENTITIES.—Tenant-based rental

assistance provided under subsection (b)(1) may be provided

only through a public housing agency that has submitted

and had approved a plan under section 7(d) of the United

States Housing Act of 1937 (42 U.S.C. 1437e(d)) that provides for such assistance, or through a private nonprofit

organization. A public housing agency shall be eligible to

apply under this section only for the purposes of providing

such tenant-based rental assistance.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3023

‘‘(B) PROGRAM RULES.—Tenant-based rental assistance

under subsection (b)(1) shall be made available to eligible

persons with disabilities and administered under the same

rules that govern tenant-based rental assistance made

available under section 8 of the United States Housing

Act of 1937, except that the Secretary may waive or modify

such rules, but only to the extent necessary to provide

for administering such assistance under subsection (b)(1)

through private nonprofit organizations rather than

through public housing agencies. ‘‘(C) ALLOCATION OF ASSISTANCE.—In determining the

amount of assistance provided under subsection (b)(1) for

a private nonprofit organization or public housing agency,

the Secretary shall consider the needs and capabilities

of the organization or agency, in the case of a public

housing agency, as described in the plan for the agency

under section 7 of the United States Housing Act of 1937.’’;

and

(2) in subsection (l)(1)— (A) by striking ‘‘subsection (b)’’ and inserting ‘‘subsection (b)(2)’’; and

(B) by striking the last comma and all that follows

through ‘‘subsection (n)’’.

SEC. 844. USE OF PROJECT RESERVES.

Section 811( j) of the Cranston-Gonzalez National Affordable

Housing Act (42 U.S.C. 8013( j)) is amended by adding at the

end the following: ‘‘(7) USE OF PROJECT RESERVES.—Amounts for project

reserves for a project assisted under this section may be used

for costs, subject to reasonable limitations as the Secretary

determines appropriate, for reducing the number of dwelling

units in the project. Such use shall be subject to the approval

of the Secretary to ensure that the use is designed to retrofit

units that are currently obsolete or unmarketable.’’.

SEC. 845. COMMERCIAL ACTIVITIES.

Section 811(h)(1) of the Cranston-Gonzalez National Affordable

Housing Act (42 U.S.C. 8013(h)(1)) is amended by adding at the

end the following: ‘‘Neither this section nor any other provision

of law may be construed as prohibiting or preventing the location

and operation, in a project assisted under this section, of commercial

facilities for the benefit of residents of the project and the community in which the project is located, except that assistance made

available under this section may not be used to subsidize any

such commercial facility.’’.

PART 3—OTHER PROVISIONS

SEC. 851. SERVICE COORDINATORS.

(a) INCREASED FLEXIBILITY FOR USE OF SERVICE COORDINATORS

IN CERTAIN FEDERALLY ASSISTED HOUSING.—Section 676 of the

Housing and Community Development Act of 1992 (42 U.S.C. 13632)

is amended— (1) in the section heading, by striking ‘‘MULTIFAMILY

HOUSING ASSISTED UNDER NATIONAL HOUSING ACT’’ and

inserting ‘‘CERTAIN FEDERALLY ASSISTED HOUSING’’;

(2) in subsection (a)—

114 STAT. 3024 PUBLIC LAW 106–569—DEC. 27, 2000

(A) in the first sentence, by striking ‘‘(E) and (F)’’ and inserting ‘‘(B), (C), (D), (E), (F), and (G)’’; and

(B) in the last sentence— (i) by striking ‘‘section 661’’ and inserting ‘‘section

671’’; and

(ii) by adding at the end the following: ‘‘A service

coordinator funded with a grant under this section

for a project may provide services to low-income elderly

or disabled families living in the vicinity of such

project.’’;

(3) in subsection (d)—

(A) by striking ‘‘(E) or (F)’’ and inserting ‘‘(B), (C),

(D), (E), (F), or (G)’’; and

(B) by striking ‘‘section 661’’ and inserting ‘‘section

671’’; and

(4) by striking subsection (c) and redesignating subsection

(d) (as amended by paragraph (3) of this subsection) as subsection (c).

(b) REQUIREMENT TO PROVIDE SERVICE COORDINATORS.—Section 671 of the Housing and Community Development Act of 1992

(42 U.S.C. 13631) is amended—

(1) in the first sentence of subsection (a), by striking ‘‘to

carry out this subtitle pursuant to the amendments made by

this subtitle’’ and inserting the following: ‘‘for providing service

coordinators under this section’’;

(2) in subsection (d), by inserting ‘‘)’’ after ‘‘section 683(2)’’;

and

(3) by adding at the end following:

‘‘(e) SERVICES FOR LOW-INCOME ELDERLY OR DISABLED FAMILIES

RESIDING IN VICINITY OF CERTAIN PROJECTS.—To the extent only

that this section applies to service coordinators for covered federally

assisted housing described in subparagraphs (B), (C), (D), (E), (F),

and (G) of section 683(2), any reference in this section to elderly

or disabled residents of a project shall be construed to include

low-income elderly or disabled families living in the vicinity of

such project.’’.

(c) PROTECTION AGAINST TELEMARKETING FRAUD.—

(1) SUPPORTIVE HOUSING FOR THE ELDERLY.—The first sentence of section 202(g)(1) of the Housing Act of 1959 (12 U.S.C.

1701q(g)(1)) is amended by striking ‘‘and (F)’’ and inserting

the following: ‘‘(F) providing education and outreach regarding

telemarketing fraud, in accordance with the standards issued

under section 671(f ) of the Housing and Community Development Act of 1992 (42 U.S.C. 13631(f )); and (G)’’.

(2) OTHER FEDERALLY ASSISTED HOUSING.—Section 671 of

the Housing and Community Development Act of 1992 (42

U.S.C. 13631), as amended by subsection (b) of this section,

is further amended—

(A) in the first sentence of subsection (c), by inserting

after ‘‘response,’’ the following: ‘‘education and outreach

regarding telemarketing fraud in accordance with the

standards issued under subsection (f ),’’; and

(B) by adding at the end the following:

‘‘(f ) PROTECTION AGAINST TELEMARKETING FRAUD.—

‘‘(1) IN GENERAL.—The Secretary, in coordination with the

Secretary of Health and Human Services, shall establish standards for service coordinators in federally assisted housing who

Regulations.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3025

are providing education and outreach to elderly persons residing

in such housing regarding telemarketing fraud. The standards

shall be designed to ensure that such education and outreach

informs such elderly persons of the dangers of telemarketing

fraud and facilitates the investigation and prosecution of telemarketers engaging in fraud against such residents. ‘‘(2) CONTENTS.—The standards established under this subsection shall require that any such education and outreach

be provided in a manner that— ‘‘(A) informs such residents of— ‘‘(i) the prevalence of telemarketing fraud targeted

against elderly persons; ‘‘(ii) how telemarketing fraud works;

‘‘(iii) how to identify telemarketing fraud;

‘‘(iv) how to protect themselves against telemarketing fraud, including an explanation of the dangers of providing bank account, credit card, or other

financial or personal information over the telephone

to unsolicited callers; ‘‘(v) how to report suspected attempts at telemarketing fraud; and ‘‘(vi) their consumer protection rights under Federal law;

‘‘(B) provides such other information as the Secretary

considers necessary to protect such residents against

fraudulent telemarketing; and ‘‘(C) disseminates the information provided by appropriate means, and in determining such appropriate means,

the Secretary shall consider on-site presentations at federally assisted housing, public service announcements, a

printed manual or pamphlet, an Internet website, and telephone outreach to residents whose names appear on ‘mooch

lists’ confiscated from fraudulent telemarketers.’’.

Subtitle D—Preservation of Affordable

Housing Stock

SEC. 861. SECTION 236 ASSISTANCE.

(a) EXTENSION OF AUTHORITY TO RETAIN EXCESS CHARGES.— Section 236(g) of the National Housing Act (12 U.S.C. 1715z–1(g)),

as amended by the Departments of Veterans Affairs and Housing

and Urban Development, and Independent Agencies Appropriations

Act, 2001, is amended— (1) in paragraph (2), by striking ‘‘Subject to paragraph

(3) and notwithstanding’’ and inserting ‘‘Notwithstanding’’; and

(2) by striking paragraph (3) and redesignating paragraph

(4) as paragraph (3).

(b) TREATMENT OF EXCESS CHARGES PREVIOUSLY COLLECTED.— Any excess charges that a project owner may retain pursuant

to the amendments made by subsections (b) and (c) of section

532 of the Departments of Veterans Affairs and Housing and Urban

Development, and Independent Agencies Appropriations Act, 2000

(Public Law 106–74; 113 Stat. 1116) that have been collected by

such owner since the date of the enactment of such appropriations

Act and that such owner has not remitted to the Secretary of

Housing and Urban Development may be retained by such owner

12 USC 1715z–1

note.

114 STAT. 3026 PUBLIC LAW 106–569—DEC. 27, 2000

unless such Secretary otherwise provides. To the extent that a

project owner has remitted such excess charges to the Secretary

since such date of the enactment, the Secretary may return to

the relevant project owner any such excess charges remitted. Notwithstanding any other provision of law, amounts in the Rental

Housing Assistance Fund, or heretofore or subsequently transferred

from the Rental Housing Assistance Fund to the Flexible Subsidy

Fund, shall be available to make such return of excess charges

previously remitted to the Secretary, including the return of excess

charges referred to in section 532(e) of such appropriations Act.

TITLE IX—OTHER RELATED HOUSING

PROVISIONS

SEC. 901. EXTENSION OF LOAN TERM FOR MANUFACTURED HOME

LOTS.

Section 2(b)(3)(E) of the National Housing Act (12 U.S.C.

1703(b)(3)(E)) is amended by striking ‘‘fifteen’’ and inserting

‘‘twenty’’.

SEC. 902. USE OF SECTION 8 VOUCHERS FOR OPT-OUTS.

(a) IN GENERAL.—Section 8(t)(2) of the United States Housing

Act of 1937 (42 U.S.C. 1437f(t)(2)), as amended by the Departments

of Veterans Affairs and Housing and Urban Development, and

Independent Agencies Appropriations Act, 2001, is amended by

striking ‘‘fiscal year 1996’’ and inserting ‘‘fiscal year 1994’’.

(b) EFFECTIVE DATE.—The amendment under subsection (a)

shall be made and shall apply—

(1) upon the enactment of this Act, if the Departments

of Veterans Affairs and Housing and Urban Development, and

Independent Agencies Appropriations Act, 2001, is enacted

before the enactment of this Act; and

(2) immediately after the enactment of such appropriations

Act, if such appropriations Act is enacted after the enactment

of this Act.

SEC. 903. MAXIMUM PAYMENT STANDARD FOR ENHANCED VOUCHERS.

(a) IN GENERAL.—Section 8(t)(1)(B) of the United States

Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(B)), as amended by

the Departments of Veterans Affairs and Housing and Urban

Development, and Independent Agencies Appropriations Act, 2001,

is amended by inserting before the semicolon at the end the following: ‘‘, except that a limit shall not be considered reasonable

for purposes of this subparagraph if it adversely affects such

assisted families’’.

(b) EFFECTIVE DATE.—The amendment under subsection (a)

shall be made and shall apply—

(1) upon the enactment of this Act, if the Departments

of Veterans Affairs and Housing and Urban Development, and

Independent Agencies Appropriations Act, 2001, is enacted

before the enactment of this Act; and

(2) immediately after the enactment of such appropriations

Act, if such appropriations Act is enacted after the enactment

of this Act.

Applicability.

42 USC 1437f

note.

Applicability.

42 USC 1437f

note.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3027

SEC. 904. USE OF SECTION 8 ASSISTANCE BY ‘‘GRAND-FAMILIES’’ TO

RENT DWELLING UNITS IN ASSISTED PROJECTS.

Section 215(a) of the Cranston-Gonzalez National Affordable

Housing Act (42 U.S.C. 12745(a)) is amended by adding at the

end the following new paragraph:

‘‘(6) WAIVER OF QUALIFYING RENT.—

‘‘(A) IN GENERAL.—For the purpose of providing affordable housing appropriate for families described in subparagraph (B), the Secretary may, upon the application of the

project owner, waive the applicability of subparagraph (A)

of paragraph (1) with respect to a dwelling unit if—

‘‘(i) the unit is occupied by such a family, on whose

behalf tenant-based assistance is provided under section 8 of the United States Housing Act of 1937 (42

U.S.C. 1437f );

‘‘(ii) the rent for the unit is not greater than the

existing fair market rent for comparable units in the

area, as established by the Secretary under section

8 of the United States Housing Act of 1937; and

‘‘(iii) the Secretary determines that the waiver,

together with waivers under this paragraph for other

dwelling units in the project, will result in the use

of amounts described in clause (iii) in an effective

manner that will improve the provision of affordable

housing for such families.

‘‘(B) ELIGIBLE FAMILIES.—A family described in this

subparagraph is a family that consists of at least one

elderly person (who is the head of household) and one

or more of such person’s grand children, great grandchildren, great nieces, great nephews, or great great grandchildren (as defined by the Secretary), but does not include

any parent of such grandchildren, great grandchildren,

great nieces, great nephews, or great great grandchildren.

Such term includes any such grandchildren, great grandchildren, great nieces, great nephews, or great great grandchildren who have been legally adopted by such elderly

person.’’.

TITLE X—FEDERAL RESERVE BOARD

PROVISIONS

SEC. 1001. FEDERAL RESERVE BOARD BUILDINGS.

The third undesignated paragraph of section 10 of the Federal

Reserve Act (12 U.S.C. 243) is amended—

(1) by inserting after the first sentence the following new

sentence: ‘‘After September 1, 2000, the Board may also use

such assessments to acquire, in its own name, a site or building

(in addition to the facilities existing on such date) to provide

for the performance of the functions of the Board.’’; and

(2) in the sentences following the sentence added by the

amendment made by paragraph (1) of this section—

(A) by striking ‘‘the site’’ and inserting ‘‘any site’’; and

(B) by inserting ‘‘or buildings’’ after ‘‘building’’ each

place such term appears.

114 STAT. 3028 PUBLIC LAW 106–569—DEC. 27, 2000

SEC. 1002. POSITIONS OF BOARD OF GOVERNORS OF THE FEDERAL

RESERVE SYSTEM ON THE EXECUTIVE SCHEDULE.

(a) IN GENERAL.—

(1) POSITIONS AT LEVEL I OF THE EXECUTIVE SCHEDULE.—

Section 5312 of title 5, United States Code, is amended by

adding at the end the following:

‘‘Chairman, Board of Governors of the Federal Reserve

System.’’.

(2) POSITIONS AT LEVEL II OF THE EXECUTIVE SCHEDULE.—

Section 5313 of title 5, United States Code, is amended—

(A) by striking ‘‘Chairman, Board of Governors of the

Federal Reserve System.’’; and

(B) by adding at the end the following:

‘‘Members, Board of Governors of the Federal Reserve

System.’’.

(3) POSITIONS AT LEVEL III OF THE EXECUTIVE SCHEDULE.—

Section 5314 of title 5, United States Code, is amended by

striking ‘‘Members, Board of Governors of the Federal Reserve

System.’’.

(b) EFFECTIVE DATE.—This section and the amendments made

by this section shall take effect on the first day of the first pay

period for the Chairman and Members of the Board of Governors

of the Federal Reserve System beginning on or after the date

of the enactment of this Act.

SEC. 1003. AMENDMENTS TO THE FEDERAL RESERVE ACT.

(a) REPEAL.—Section 2A of the Federal Reserve Act (12 U.S.C.

225a) is amended by striking all after the first sentence.

(b) APPEARANCES BEFORE AND REPORTS TO THE CONGRESS.—

(1) IN GENERAL.—The Federal Reserve Act (12 U.S.C. 221

et seq.) is amended by inserting after section 2A the following

new section:

‘‘SEC. 2B. APPEARANCES BEFORE AND REPORTS TO THE CONGRESS.

‘‘(a) APPEARANCES BEFORE THE CONGRESS.—

(1) IN GENERAL.—The Chairman of the Board shall appear

before the Congress at semi-annual hearings, as specified in

paragraph (2), regarding—

‘‘(A) the efforts, activities, objectives and plans of the

Board and the Federal Open Market Committee with

respect to the conduct of monetary policy; and

‘‘(B) economic developments and prospects for the

future described in the report required in subsection (b).

‘‘(2) SCHEDULE.—The Chairman of the Board shall appear—

‘‘(A) before the Committee on Banking and Financial

Services of the House of Representatives on or about February 20 of even numbered calendar years and on or about

July 20 of odd numbered calendar years;

‘‘(B) before the Committee on Banking, Housing, and

Urban Affairs of the Senate on or about July 20 of even

numbered calendar years and on or about February 20

of odd numbered calendar years; and

‘‘(C) before either Committee referred to in subparagraph (A) or (B), upon request, following the scheduled

appearance of the Chairman before the other Committee

under subparagraph (A) or (B).

12 USC 225b.

5 USC 5312 note.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3029

‘‘(b) CONGRESSIONAL REPORT.—The Board shall, concurrent

with each semi-annual hearing required by this section, submit

a written report to the Committee on Banking, Housing, and Urban

Affairs of the Senate and the Committee on Banking and Financial

Services of the House of Representatives, containing a discussion

of the conduct of monetary policy and economic developments and

prospects for the future, taking into account past and prospective

developments in employment, unemployment, production, investment, real income, productivity, exchange rates, international trade

and payments, and prices.’’.

TITLE XI—BANKING AND HOUSING

AGENCY REPORTS

SEC. 1101. SHORT TITLE.

This title may be cited as the ‘‘Federal Reporting Act of 2000’’.

SEC. 1102. PRESERVATION OF CERTAIN REPORTING REQUIREMENTS.

Section 3003(a)(1) of the Federal Reports Elimination and

Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to any

report required to be submitted under any of the following provisions of law:

(1) Section 3 of the Employment Act of 1946 (15 U.S.C.

1022).

(2) Section 309 of the Defense Production Act of 1950

(50 U.S.C. App. 2099).

(3) Section 603 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3213).

(4) Section 7(o)(1) of the Department of Housing and Urban

Development Act (42 U.S.C. 3535(o)(1)).

(5) Section 540(c) of the National Housing Act (12 U.S.C.

1735f–18(c)).

(6) Paragraphs (2) and (6) of section 808(e) of the Civil

Rights Act of 1968 (42 U.S.C. 3608(e)).

(7) Section 1061 of the Housing and Community Development Act of 1992 (42 U.S.C. 4856).

(8) Section 203(v) of the National Housing Act (12 U.S.C.

1709(v)), as added by section 504 of the Housing and Community Development Act of 1992 (Public Law 102–550; 106 Stat.

3780).

(9) Section 802 of the Housing Act of 1954 (12 U.S.C.

1701o).

(10) Section 8 of the Department of Housing and Urban

Development Act (42 U.S.C. 3536).

(11) Section 1320 of the National Flood Insurance Act

of 1968 (42 U.S.C. 4027).

(12) Section 4(e)(2) of the Department of Housing and

Urban Development Act (42 U.S.C. 3533(e)(2)).

(13) Section 205(g) of the National Housing Act (12 U.S.C.

1711(g)).

(14) Section 701(c)(1) of the International Financial Institutions Act (22 U.S.C. 262d(c)(1)).

(15) Paragraphs (1) and (2) of section 5302(c) of title 31,

United States Code.

(16) Section 18(f )(7) of the Federal Trade Commission Act

(15 U.S.C. 57a(f )(7)).

31 USC 1113

note.

Federal

Reporting Act of

2000.

114 STAT. 3030 PUBLIC LAW 106–569—DEC. 27, 2000

(17) Section 333 of the Revised Statutes of the United

States (12 U.S.C. 14).

(18) Section 3(g) of the Home Owners’ Loan Act (12 U.S.C.

1462a(g)).

(19) Section 304 of the Appalachian Regional Development

Act of 1965 (40 U.S.C. App. 304).

(20) Sections 2(b)(1)(A), 8(a), 8(c), 10(g)(1), and 11(c) of

the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(A),

635g(a), 635g(c), 635i–3(g), and 635i–5(c)).

(21) Section 17(a) of the Federal Deposit Insurance Act

(12 U.S.C. 1827(a)).

(22) Section 13 of the Federal Financing Bank Act of 1973

(12 U.S.C. 2292).

(23) Section 2B(d) of the Federal Home Loan Bank Act

(12 U.S.C. 1422b(d)).

(24) Section 1002(b) of the Financial Institutions Reform,

Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note).

(25) Section 8 of the Fair Credit and Charge Card Disclosure Act of 1988 (15 U.S.C. 1637 note).

(26) Section 136(b)(4)(B) of the Truth in Lending Act (15

U.S.C. 1646(b)(4)(B)).

(27) Section 707 of the Equal Credit Opportunity Act (15

U.S.C. 1691f ).

(28) Section 114 of the Truth in Lending Act (15 U.S.C.

1613).

(29) The seventh undesignated paragraph of section 10

of the Federal Reserve Act (12 U.S.C. 247).

(30) The tenth undesignated paragraph of section 10 of

the Federal Reserve Act (12 U.S.C. 247a).

(31) Section 815 of the Fair Debt Collection Practices Act

(15 U.S.C. 1692m).

(32) Section 102(d) of the Federal Credit Union Act (12

U.S.C. 1752a(d)).

(33) Section 21B(i) of the Federal Home Loan Bank Act

(12 U.S.C. 1441b(i)).

(34) Section 607(a) of the Housing and Community Development Amendments of 1978 (42 U.S.C. 8106(a)).

(35) Section 708(l) of the Defense Production Act of 1950

(50 U.S.C. App. 2158(l)).

(36) Section 2546 of the Comprehensive Thrift and Bank

Fraud Prosecution and Taxpayer Recovery Act of 1990 (28

U.S.C. 522 note).

(37) Section 202(b)(8) of the National Housing Act (12

U.S.C. 1708(b)(8)).

SEC. 1103. COORDINATION OF REPORTING REQUIREMENTS.

(a) FEDERAL DEPOSIT INSURANCE CORPORATION.—Section 17(a)

of the Federal Deposit Insurance Act (12 U.S.C. 1827(a)) is amended

by adding at the end the following new paragraph:

‘‘(3) COORDINATION WITH OTHER REPORT REQUIREMENTS.—

The report required under this subsection shall include the

report required under section 18(f )(7) of the Federal Trade

Commission Act.’’.

(b) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.—

The seventh undesignated paragraph of section 10 of the Federal

Reserve Act (12 U.S.C. 247) is amended by adding at the end

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3031

the following new sentence: ‘‘The report required under this paragraph shall include the reports required under section 707 of the

Equal Credit Opportunity Act, section 18(f )(7) of the Federal Trade

Commission Act, section 114 of the Truth in Lending Act, and

the tenth undesignated paragraph of this section.’’.

(c) COMPTROLLER OF THE CURRENCY.—Section 333 of the

Revised Statutes of the United States (12 U.S.C. 14) is amended

by adding at the end the following new sentence: ‘‘The report

required under this section shall include the report required under

section 18(f )(7) of the Federal Trade Commission Act.’’. (d) EXPORT-IMPORT BANK.— (1) IN GENERAL.—Section 2(b)(1)(A) of the Export-Import

Bank Act of 1945 (12 U.S.C. 635(b)(1)(A)) is amended— (A) by striking ‘‘a annual’’ and inserting ‘‘an annual’’;

and

(B) by adding at the end the following new sentence: ‘‘The annual report required under this subparagraph shall

include the report required under section 10(g).’’. (2) TECHNICAL AND CONFORMING AMENDMENT.—Section

10(g)(1) of the Export-Import Bank Act of 1945 (12 U.S.C.

635i–3(g)(1)) is amended—

(A) by striking ‘‘On or’’ and all that follows through

‘‘the Bank’’ and inserting ‘‘The Bank’’; and

(B) by striking ‘‘a report’’ and inserting ‘‘an annual

report’’.

(e) DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.—Section 8 of the Department of Housing and Urban Development Act

(42 U.S.C. 3536) is amended by adding at the end the following

new sentence: ‘‘The report required under this section shall include

the reports required under paragraphs (2) and (6) of section 808(e)

of the Civil Rights Act of 1968, the reports required under subsections (a) and (b) of section 1061 of the Housing and Community

Development Act of 1992, the report required under section 802

of the Housing Act of 1954, and the report required under section

4(e)(2) of this Act.’’. (f ) FEDERAL HOUSING ADMINISTRATION.—Section 203(v) of the

National Housing Act (12 U.S.C. 1709(v)), as added by section

504 of the Housing and Community Development Act of 1992,

is amended by adding at the end the following new sentence:

‘‘The report required under this subsection shall include the report

required under section 540(c) and the report required under section

205(g).’’.

(g) INTERNATIONAL FINANCIAL INSTITUTIONS ACT.—Section

701(c)(1) of the International Financial Institutions Act (22 U.S.C.

262d(c)(1)) is amended by striking ‘‘Not later’’ and all that follows

through ‘‘quarterly’’ and inserting ‘‘The Secretary of the Treasury

shall report annually’’.

SEC. 1104. ELIMINATION OF CERTAIN REPORTING REQUIREMENTS.

(a) EXPORT-IMPORT BANK.—The Export-Import Bank Act of

1945 (12 U.S.C. 635 et seq.) is amended— (1) in section 2(b)(1)(D)—

(A) by striking ‘‘(i)’’; and

(B) by striking clause (ii);

(2) in section 2(b)(8), by striking the last sentence;

(3) in section 6(b), by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and

12 USC 635e.

12 USC 635.

114 STAT. 3032 PUBLIC LAW 106–569—DEC. 27, 2000

(4) in section 8, by striking subsections (b) and (d) and

redesignating subsections (c) and (e) as subsections (b) and

(c), respectively.

(b) FEDERAL DEPOSIT INSURANCE CORPORATION.—Section 17

of the Federal Deposit Insurance Act (12 U.S.C. 1827) is amended

by striking subsection (h).

TITLE XII—FINANCIAL REGULATORY

RELIEF

SEC. 1200. SHORT TITLE.

This title may be cited as the ‘‘Financial Regulatory Relief

and Economic Efficiency Act of 2000’’.

Subtitle A—Improving Monetary Policy

and Financial Institution Management

Practices

SEC. 1201. REPEAL OF SAVINGS ASSOCIATION LIQUIDITY PROVISION.

(a) REPEAL OF LIQUIDITY PROVISION.—Section 6 of the Home

Owners’ Loan Act (12 U.S.C. 1465) is hereby repealed.

(b) CONFORMING AMENDMENTS.—

(1) SECTION 5.—Section 5(c)(1)(M) of the Home Owners’

Loan Act (12 U.S.C. 1464(c)(1)(M)) is amended to read as follows:

‘‘(M) LIQUIDITY INVESTMENTS.—Investments (other

than equity investments), identified by the Director, for

liquidity purposes, including cash, funds on deposit at a

Federal reserve bank or a Federal home loan bank, or

bankers’ acceptances.’’.

(2) SECTION 10.—Section 10(m)(4)(B)(iii) of the Home

Owners’ Loan Act (12 U.S.C. 1467a(m)(4)(B)(iii)) is amended

by inserting ‘‘as in effect on the day before the date of the

enactment of the Financial Regulatory Relief and Economic

Efficiency Act of 2000,’’ after ‘‘Loan Act,’’.

SEC. 1202. NONCONTROLLING INVESTMENTS BY SAVINGS ASSOCIATION HOLDING COMPANIES.

Section 10(e)(1)(A)(iii) of the Home Owners’ Loan Act (12 U.S.C.

1467a(e)(1)(A)(iii)) is amended—

(1) by inserting ‘‘, except with the prior written approval

of the Director,’’ after ‘‘or to retain’’; and

(2) by striking ‘‘so acquire or retain’’ and inserting ‘‘acquire

or retain, and the Director may not authorize acquisition or

retention of,’’.

SEC. 1203. REPEAL OF DEPOSIT BROKER NOTIFICATION AND RECORDKEEPING REQUIREMENT.

Section 29A of the Federal Deposit Insurance Act (12 U.S.C.

1831f–1) is hereby repealed.

12 USC 1811

note.

Financial

Regulatory Relief

and Economic

Efficiency Act of

2000.

12 USC 635g.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3033

SEC. 1204. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS.

The National Bank Consolidation and Merger Act (12 U.S.C.

215 et seq.) is amended—

(1) by redesignating section 5 as section 7; and

(2) by inserting after section 4 the following new section:

‘‘SEC. 5. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS.

‘‘(a) IN GENERAL.—A national bank may, with the approval

of the Comptroller, pursuant to rules and regulations promulgated

by the Comptroller, and upon the affirmative vote of the shareholders of such bank owning at least two-thirds of its capital stock

outstanding, reorganize so as to become a subsidiary of a bank

holding company or of a company that will, upon consummation

of such reorganization, become a bank holding company. ‘‘(b) REORGANIZATION PLAN.—A reorganization authorized under

subsection (a) shall be carried out in accordance with a reorganization plan that— ‘‘(1) specifies the manner in which the reorganization shall

be carried out; ‘‘(2) is approved by a majority of the entire board of directors of the national bank; ‘‘(3) specifies— ‘‘(A) the amount of cash or securities of the bank

holding company, or both, or other consideration to be

paid to the shareholders of the reorganizing bank in

exchange for their shares of stock of the bank; ‘‘(B) the date as of which the rights of each shareholder

to participate in such exchange will be determined; and ‘‘(C) the manner in which the exchange will be carried

out; and

‘‘(4) is submitted to the shareholders of the reorganizing

bank at a meeting to be held on the call of the directors

in accordance with the procedures prescribed in connection

with a merger of a national bank under section 3.

‘‘(c) RIGHTS OF DISSENTING SHAREHOLDERS.—If, pursuant to

this section, a reorganization plan has been approved by the shareholders and the Comptroller, any shareholder of the bank who

has voted against the reorganization at the meeting referred to

in subsection (b)(4), or has given notice in writing at or prior

to that meeting to the presiding officer that the shareholder dissents

from the reorganization plan, shall be entitled to receive the value

of his or her shares, as provided by section 3 for the merger

of a national bank.

‘‘(d) EFFECT OF REORGANIZATION.—The corporate existence of

a national bank that reorganizes in accordance with this section

shall not be deemed to have been affected in any way by reason

of such reorganization.

‘‘(e) APPROVAL UNDER THE BANK HOLDING COMPANY ACT.—

This section does not affect in any way the applicability of the

Bank Holding Company Act of 1956 to a transaction described

in subsection (a).’’.

SEC. 1205. NATIONAL BANK DIRECTORS.

(a) AMENDMENTS TO THE REVISED STATUTES.—Section 5145

of the Revised Statutes of the United States (12 U.S.C. 71) is

amended—

12 USC 215a–2.

12 USC 215b.

114 STAT. 3034 PUBLIC LAW 106–569—DEC. 27, 2000

(1) by striking ‘‘for one year’’ and inserting ‘‘for a period

of not more than 3 years’’; and

(2) by adding at the end the following: ‘‘In accordance

with regulations issued by the Comptroller of the Currency,

a national bank may adopt bylaws that provide for staggering

the terms of its directors.’’.

(b) AMENDMENT TO THE BANKING ACT OF 1933.—Section 31

of the Banking Act of 1933 (12 U.S.C. 71a) is amended in the

first sentence, by inserting before the period ‘‘, except that the

Comptroller of the Currency may, by regulation or order, exempt

a national bank from the 25-member limit established by this

section’’.

SEC. 1206. AMENDMENT TO NATIONAL BANK CONSOLIDATION AND

MERGER ACT.

The National Bank Consolidation and Merger Act (12 U.S.C.

215 et seq.) is amended by inserting after section 5, as added

by this title, the following new section:

‘‘SEC. 6. MERGERS AND CONSOLIDATIONS WITH SUBSIDIARIES AND

NONBANK AFFILIATES.

‘‘(a) IN GENERAL.—Upon the approval of the Comptroller, a

national bank may merge with one or more of its nonbank subsidiaries or affiliates.

‘‘(b) SCOPE.—Nothing in this section shall be construed—

‘‘(1) to affect the applicability of section 18(c) of the Federal

Deposit Insurance Act; or

‘‘(2) to grant a national bank any power or authority that

is not permissible for a national bank under other applicable

provisions of law.

‘‘(c) REGULATIONS.—The Comptroller shall promulgate regulations to implement this section.’’.

SEC. 1207. LOANS ON OR PURCHASES BY INSTITUTIONS OF THEIR

OWN STOCK; AFFILIATIONS.

(a) AMENDMENT TO THE REVISED STATUTES.—Section 5201 of

the Revised Statutes of the United States (12 U.S.C. 83) is amended

to read as follows:

‘‘SEC. 5201. LOANS BY BANK ON ITS OWN STOCK.

‘‘(a) GENERAL PROHIBITION.—No national bank shall make any

loan or discount on the security of the shares of its own capital

stock.

‘‘(b) EXCLUSION.—For purposes of this section, a national bank

shall not be deemed to be making a loan or discount on the security

of the shares of its own capital stock if it acquires the stock

to prevent loss upon a debt previously contracted for in good faith.’’.

(b) AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT.—

Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828)

is amended—

(1) by redesignating subsection (t), as added by section

730 of the Gramm-Leach-Bliley Act (Public Law 106–102; 113

Stat. 1476), as subsection (u); and

(2) by adding at the end the following new subsection:

‘‘(v) LOANS BY INSURED INSTITUTIONS ON THEIR OWN STOCK.—

‘‘(1) GENERAL PROHIBITION.—No insured depository institution may make any loan or discount on the security of the

shares of its own capital stock.

12 USC 215a–3.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3035

‘‘(2) EXCLUSION.—For purposes of this subsection, an

insured depository institution shall not be deemed to be making

a loan or discount on the security of the shares of its own

capital stock if it acquires the stock to prevent loss upon a

debt previously contracted for in good faith.’’.

SEC. 1208. PURCHASED MORTGAGE SERVICING RIGHTS.

Section 475 of the Federal Deposit Insurance Corporation

Improvement Act of 1991 (12 U.S.C. 1828 note) is amended— (1) in subsection (a)(1), by inserting ‘‘(or such other percentage exceeding 90 percent but not exceeding 100 percent, as

may be determined under subsection (b))’’ after ‘‘90 percent’’;

(2) by redesignating subsections (b) and (c) as subsections

(c) and (d), respectively, and by inserting after subsection (a)

the following new subsection:

‘‘(b) AUTHORITY TO DETERMINE PERCENTAGE BY WHICH TO DIS- COUNT VALUE OF SERVICING RIGHTS.—The appropriate Federal

banking agencies may allow readily marketable purchased mortgage

servicing rights to be valued at more than 90 percent of their

fair market value but at not more than 100 percent of such value,

if such agencies jointly make a finding that such valuation would

not have an adverse effect on the deposit insurance funds or the

safety and soundness of insured depository institutions.’’; and

(3) in subsection (c), by striking ‘‘and’’ and inserting ‘‘,

‘deposit insurance fund’, and’’.

Subtitle B—Streamlining Activities of

Institutions

SEC. 1211. CALL REPORT SIMPLIFICATION.

(a) MODERNIZATION OF CALL REPORT FILING AND DISCLOSURE

SYSTEM.—In order to reduce the administrative requirements pertaining to bank reports of condition, savings association financial

reports, and bank holding company consolidated and parent-only

financial statements, and to improve the timeliness of such reports

and statements, the Federal banking agencies shall—

(1) work jointly to develop a system under which—

(A) insured depository institutions and their affiliates

may file such reports and statements electronically; and

(B) the Federal banking agencies may make such

reports and statements available to the public electronically; and

(2) not later than 1 year after the date of the enactment

of this Act, report to the Congress and make recommendations

for legislation that would enhance efficiency for filers and users

of such reports and statements.

(b) UNIFORM REPORTS AND SIMPLIFICATION OF INSTRUCTIONS.—

The Federal banking agencies shall, consistent with the principles

of safety and soundness, work jointly—

(1) to adopt a single form for the filing of core information

required to be submitted under Federal law to all such agencies

in the reports and statements referred to in subsection (a);

and

(2) to simplify instructions accompanying such reports and

statements and to provide an index to the instructions that

is adequate to meet the needs of both filers and users.

Deadline.

25 USC 4805a.

114 STAT. 3036 PUBLIC LAW 106–569—DEC. 27, 2000

(c) REVIEW OF CALL REPORT SCHEDULE.—Each Federal banking

agency shall— (1) review the information required by schedules

supplementing the core information referred to in subsection

(b); and

(2) eliminate requirements that are not warranted for reasons of safety and soundness or other public purposes.

(d) DEFINITION.—In this section, the term ‘‘Federal banking

agency’’ has the same meaning as in section 3 of the Federal

Deposit Insurance Act (12 U.S.C. 1813).

Subtitle C—Streamlining Agency Actions

SEC. 1221. ELIMINATION OF DUPLICATIVE DISCLOSURE OF FAIR

MARKET VALUE OF ASSETS AND LIABILITIES.

Section 37(a)(3) of the Federal Deposit Insurance Act (12 U.S.C.

1831n(a)(3)) is amended by striking subparagraph (D).

SEC. 1222. PAYMENT OF INTEREST IN RECEIVERSHIPS WITH SURPLUS

FUNDS.

Section 11(d)(10) of the Federal Deposit Insurance Act (12

U.S.C. 1821(d)(10)) is amended by adding at the end the following

new subparagraph:

‘‘(C) RULEMAKING AUTHORITY OF CORPORATION.—The

Corporation may prescribe such rules, including definitions

of terms, as it deems appropriate to establish a single

uniform interest rate for or to make payments of post

insolvency interest to creditors holding proven claims

against the receivership estates of insured Federal or State

depository institutions following satisfaction by the receiver

of the principal amount of all creditor claims.’’.

SEC. 1223. REPEAL OF REPORTING REQUIREMENT ON DIFFERENCES

IN ACCOUNTING STANDARDS.

Section 37(c) of the Federal Deposit Insurance Act (12 U.S.C.

1831n(c)) is amended—

(1) in paragraph (1), by striking ‘‘Each’’ and all that follows

through ‘‘a report’’ and inserting ‘‘The Federal banking agencies

shall jointly submit an annual report’’; and

(2) by inserting ‘‘any’’ before ‘‘such agency’’ each place that

term appears.

SEC. 1224. EXTENSION OF TIME.

Section 6(a)(1) of the Federal Home Loan Bank Act (12 U.S.C.

1426(a)(1)) is amended by striking ‘‘1 year’’ and inserting ‘‘18

months’’.

Subtitle D—Technical Corrections

SEC. 1231. TECHNICAL CORRECTION RELATING TO DEPOSIT INSURANCE FUNDS.

(a) IN GENERAL.—Section 2707 of the Deposit Insurance Funds

Act of 1996 (Public Law 104–208; 110 Stat. 3009–496) is amended—

(1) by striking ‘‘7(b)(2)(C)’’ and inserting ‘‘7(b)(2)(E)’’; and

(2) by striking ‘‘, as redesignated by section 2704(d)(6)

of this subtitle’’.

12 USC 1817.

PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 3037

LEGISLATIVE HISTORY—H.R. 5640 (H.R. 1776):

HOUSE REPORTS: Nos. 106–553 and Pt. 2 accompanying H.R. 1776 (Comm. on

Banking and Financial Services).

CONGRESSIONAL RECORD, Vol. 146 (2000):

Dec. 5, considered and passed House.

Dec. 7, considered and passed Senate.

Æ

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

(a) shall be deemed to have the same effective date as section

2707 of the Deposit Insurance Funds Act of 1996 (Public Law

104–208; 110 Stat. 3009–496).

SEC. 1232. RULES FOR CONTINUATION OF DEPOSIT INSURANCE FOR

MEMBER BANKS CONVERTING CHARTERS.

Section 8(o) of the Federal Deposit Insurance Act (12 U.S.C.

1818(o)) is amended in the second sentence, by striking ‘‘subsection

(d) of section 4’’ and inserting ‘‘subsection (c) or (d) of section

4’’.

SEC. 1233. AMENDMENTS TO THE REVISED STATUTES OF THE UNITED

STATES.

(a) WAIVER OF CITIZENSHIP REQUIREMENT FOR NATIONAL BANK

DIRECTORS.—Section 5146 of the Revised Statutes of the United

States (12 U.S.C. 72) is amended in the first sentence, by inserting

before the period ‘‘, and waive the requirement of citizenship in

the case of not more than a minority of the total number of directors’’.

(b) TECHNICAL AMENDMENT TO THE REVISED STATUTES.—Section 329 of the Revised Statutes of the United States (12 U.S.C.

11) is amended by striking ‘‘to be interested in any association

issuing national currency under the laws of the United States’’

and inserting ‘‘to hold an interest in any national bank’’.

(c) REPEAL OF UNNECESSARY CAPITAL AND SURPLUS REQUIRE- MENT.—Section 5138 of the Revised Statutes of the United States

(12 U.S.C. 51) is hereby repealed.

SEC. 1234. CONFORMING CHANGE TO THE INTERNATIONAL BANKING

ACT OF 1978.

Section 4(b) of the International Banking Act of 1978 (12 U.S.C.

3102(b)) is amended in the second sentence, by striking paragraph

(1) and by redesignating paragraphs (2) through (4) as paragraphs

(1) through (3), respectively.

Approved December 27, 2000.

12 USC 1817

note.