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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 400 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 374

106th CONGRESS

  1st Session

                                 S. 400

                          [Report No. 106-145]

_______________________________________________________________________

                                 A BILL

    To provide technical corrections to the Native American Housing 
Assistance and Self-Determination Act of 1996, to improve the delivery 
of housing assistance to Indian tribes in a manner that recognizes the 
        right of tribal self-governance, and for other purposes.

_______________________________________________________________________

                            November 2, 1999

Committee on Banking, Housing, and Urban Affairs discharged pursuant to 
       the order of October 27, 1999, and placed on the calendar
                                                       Calendar No. 374
106th CONGRESS
  1st Session
                                 S. 400

                          [Report No. 106-145]

    To provide technical corrections to the Native American Housing 
Assistance and Self-Determination Act of 1996, to improve the delivery 
of housing assistance to Indian tribes in a manner that recognizes the 
        right of tribal self-governance, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 10, 1999

 Mr. Campbell (for himself, Mr. Inouye, and Mr. Hatch) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Indian Affairs

                            August 27, 1999

Reported under authority of the order of the Senate of August 5, 1999, 
                   by Mr. Campbell, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            October 27, 1999

 Referred sequentially to the Committee on Banking, Housing, and Urban 
Affairs, and if the bill is not reported by that Committee by November 
    2, 1999, the Committee be discharged from further consideration 
 thereof, and the bill be placed on the calendar, by unanimous consent

                            November 2, 1999

Committee on Banking, Housing, and Urban Affairs discharged pursuant to 
       the order of October 27, 1999, and placed on the calendar

_______________________________________________________________________

                                 A BILL

 
    To provide technical corrections to the Native American Housing 
Assistance and Self-Determination Act of 1996, to improve the delivery 
of housing assistance to Indian tribes in a manner that recognizes the 
        right of tribal self-governance, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Native 
American Housing Assistance and Self-Determination Act Amendments of 
1999''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Restriction on waiver authority.
<DELETED>Sec. 3. Organizational capacity; assistance to families that 
                            are not low-income.
<DELETED>Sec. 4. Elimination of waiver authority for small tribes.
<DELETED>Sec. 5. Expanded authority to review Indian housing plans.
<DELETED>Sec. 6. Oversight.
<DELETED>Sec. 7. Allocation formula.
<DELETED>Sec. 8. Hearing requirement.
<DELETED>Sec. 9. Performance agreement time limit.
<DELETED>Sec. 10. Block grants and guarantees not Federal subsidies for 
                            low-income housing credit.
<DELETED>Sec. 11. Technical and conforming amendments.

<DELETED>SEC 2. RESTRICTION ON WAIVER AUTHORITY.</DELETED>

<DELETED>    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 before 
the period at the end and inserting the following: ``for a period of 
not more than 90 days, if the Secretary determines that an Indian tribe 
has not complied with, or is unable to comply with, those requirements 
due to extreme circumstances beyond the control of the Indian 
tribe''.</DELETED>

<DELETED>SEC. 3. ORGANIZATIONAL CAPACITY; ASSISTANCE TO FAMILIES THAT 
              ARE NOT LOW-INCOME.</DELETED>

<DELETED>    (a) Organizational Capacity.--Section 102(c)(4) of the 
Native American Housing Assistance and Self-Determination Act (25 
U.S.C. 4112(c)(4)) is amended--</DELETED>
        <DELETED>    (1) by redesignating subparagraphs (A) through (K) 
        as subparagraphs (B) through (L), respectively; and</DELETED>
        <DELETED>    (2) by inserting before subparagraph (B), as 
        redesignated by paragraph (1) of this subsection, the 
        following:</DELETED>
        <DELETED>    ``(A) a description of the entity that is 
        responsible for carrying out the activities under the plan, 
        including a description of--</DELETED>
                <DELETED>    ``(i) the relevant personnel of the 
                entity; and</DELETED>
                <DELETED>    ``(ii) the organizational capacity of the 
                entity, including--</DELETED>
                        <DELETED>    ``(I) the management structure of 
                        the entity; and</DELETED>
                        <DELETED>    ``(II) the financial control 
                        mechanisms of the entity;''.</DELETED>
<DELETED>    (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) is amended by adding at the 
end the following:</DELETED>
        <DELETED>    ``(6) Certain families.--With respect to 
        assistance provided by a recipient to Indian families that are 
        not low-income families under section 201(b)(2), evidence that 
        there is a need for housing for each such family during that 
        period that cannot reasonably be met without such 
        assistance.''.</DELETED>

<DELETED>SEC. 4. ELIMINATION OF WAIVER AUTHORITY FOR SMALL 
              TRIBES.</DELETED>

<DELETED>    Section 102 of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4112) is amended--</DELETED>
        <DELETED>    (1) by striking subsection (f); and</DELETED>
        <DELETED>    (2) by redesignating subsection (g) as subsection 
        (f).</DELETED>

<DELETED>SEC. 5. EXPANDED AUTHORITY TO REVIEW INDIAN HOUSING 
              PLANS.</DELETED>

<DELETED>    Section 103(a)(1) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4113(a)(1)) is 
amended--</DELETED>
        <DELETED>    (1) in the first sentence, by striking 
        ``limited''; and</DELETED>
        <DELETED>    (2) by striking the second sentence.</DELETED>

<DELETED>SEC. 6. OVERSIGHT.</DELETED>

<DELETED>    (a) 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:</DELETED>

<DELETED>``SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING 
              REQUIREMENT.</DELETED>

<DELETED>    ``If a recipient uses grant amounts to provide affordable 
housing under this title, and at any time during the useful life of the 
housing the recipient does not comply with the requirement under 
section 205(a)(2), the Secretary shall take appropriate action under 
section 401(a).''.</DELETED>
<DELETED>    (b) Audits and Reviews.--Section 405 of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 1465) is amended to read as follows:</DELETED>

<DELETED>``SEC. 405. REVIEW AND AUDIT BY SECRETARY.</DELETED>

<DELETED>    ``(a) Requirements Under Chapter 75 of Title 31, United 
States Code.--</DELETED>
        <DELETED>    ``(1) In general.--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.</DELETED>
        <DELETED>    ``(2) Payment of costs.--</DELETED>
                <DELETED>    ``(A) In general.--The Secretary may 
                arrange for, and pay the cost of, any audit required 
                under paragraph (1).</DELETED>
                <DELETED>    ``(B) Withholding of amounts.--If the 
                Secretary pays for the cost of an audit under 
                subparagraph (A), the Secretary may withhold, from the 
                assistance otherwise payable under this Act, an amount 
                sufficient to pay for the reasonable costs of 
                conducting an audit that meets the applicable 
                requirements of chapter 75 of title 31, United States 
                Code, including, if appropriate, the reasonable costs 
                of accounting services necessary to ensure that the 
                books and records of the entity referred to in 
                paragraph (1) are in such condition as is necessary to 
                carry out the audit.</DELETED>
<DELETED>    ``(b) Additional Reviews and Audits.--</DELETED>
        <DELETED>    ``(1) In general.--In addition to any audit under 
        subsection (a)(1), to the extent the Secretary determines such 
        action to be appropriate, the Secretary may conduct an audit of 
        a recipient in order to--</DELETED>
                <DELETED>    ``(A) determine whether the recipient--
                </DELETED>
                        <DELETED>    ``(i) has carried out--</DELETED>
                                <DELETED>    ``(I) eligible activities 
                                in a timely manner; and</DELETED>
                                <DELETED>    ``(II) eligible activities 
                                and certification in accordance with 
                                this Act and other applicable 
                                law;</DELETED>
                        <DELETED>    ``(ii) has a continuing capacity 
                        to carry out eligible activities in a timely 
                        manner; and</DELETED>
                        <DELETED>    ``(iii) is in compliance with the 
                        Indian housing plan of the recipient; 
                        and</DELETED>
                <DELETED>    ``(B) verify the accuracy of information 
                contained in any performance report submitted by the 
                recipient under section 404.</DELETED>
        <DELETED>    ``(2) Onsite 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 Human Development.</DELETED>
<DELETED>    ``(c) Review of Reports.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Public availability.--After taking into 
        consideration any comments of the recipient under paragraph 
        (1), the Secretary--</DELETED>
                <DELETED>    ``(A) may revise the report; and</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 7. ALLOCATION FORMULA.</DELETED>

<DELETED>    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--</DELETED>
        <DELETED>    (1) by striking ``The formula,'' and inserting the 
        following:</DELETED>
                <DELETED>    ``(A) In general.--Except with respect to 
                an Indian tribe described in subparagraph (B), the 
                formula''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
                <DELETED>    ``(B) Certain indian tribes.--With respect 
                to fiscal year 2000 and each fiscal year thereafter, 
                with respect to any Indian tribe having an Indian 
                housing authority that owns or operates fewer than 250 
                public housing units, the formula under subparagraph 
                (A) shall provide that 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), 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.''.</DELETED>

<DELETED>SEC. 8. HEARING REQUIREMENT.</DELETED>

<DELETED>    Section 401(a) of the Native American Housing Assistance 
and Self-Determination Act of 1996 (25 U.S.C. 4161(a)) is amended--
</DELETED>
        <DELETED>    (1) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and indenting each 
        such subparagraph 2 ems to the right;</DELETED>
        <DELETED>    (2) by striking ``Except as provided'' and 
        inserting the following:</DELETED>
        <DELETED>    ``(1) In general.--Except as provided'';</DELETED>
        <DELETED>    (3) by striking ``If the Secretary takes an action 
        under paragraph (1), (2), or (3)'' and inserting the 
        following:</DELETED>
        <DELETED>    ``(2) Continuance of actions.--If the Secretary 
        takes an action under subparagraph (A), (B), or (C) of 
        paragraph (1)''; and</DELETED>
        <DELETED>    (4) by adding at the end the following:</DELETED>
        <DELETED>    ``(3) Exception for certain actions.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Procedural requirement.--If the 
                Secretary takes an action described in subparagraph 
                (A), the Secretary shall--</DELETED>
                        <DELETED>    ``(i) provide notice to the 
                        recipient at the time that the Secretary takes 
                        that action; and</DELETED>
                        <DELETED>    ``(ii) conduct a hearing not later 
                        than 60 days after the date on which the 
                        Secretary provides notice under clause 
                        (i).</DELETED>
                <DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 9. PERFORMANCE AGREEMENT TIME LIMIT.</DELETED>

<DELETED>    Section 401(b) of the Native American Housing Assistance 
and Self-Determination Act of 1996 (25 U.S.C. 4161(b)) is amended--
</DELETED>
        <DELETED>    (1) by striking ``If the Secretary'' and inserting 
        the following:</DELETED>
        <DELETED>    ``(1) In general.--If the Secretary'';</DELETED>
        <DELETED>    (2) by striking ``(1) is not'' and inserting the 
        following:</DELETED>
                <DELETED>    ``(A) is not'';</DELETED>
        <DELETED>    (3) by striking ``(2) is a result'' and inserting 
        the following:</DELETED>
                <DELETED>    ``(B) is a result:</DELETED>
        <DELETED>    (4) in the flush material following paragraph 
        (1)(B), as redesignated by paragraph (3) of this section--
        </DELETED>
                <DELETED>    (A) by adjusting the margin 2 ems to the 
                right; and</DELETED>
                <DELETED>    (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</DELETED>
        <DELETED>    (5) by adding at the end the following:</DELETED>
        <DELETED>    ``(2) Performance agreement.--The period of a 
        performance agreement described in paragraph (1) shall be for 1 
        year.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Effect of review.--If, on the basis of a 
        review under paragraph (3), the Secretary determines that the 
        recipient--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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).''.</DELETED>

<DELETED>SEC. 10. BLOCK GRANTS AND GUARANTEES NOT FEDERAL SUBSIDIES FOR 
              LOW-INCOME HOUSING CREDIT.</DELETED>

<DELETED>    (a) In General.--Subparagraph (E) of section 42(i)(2) of 
the Internal Revenue Code of 1986 (relating to determination of whether 
building is federally subsidized) is amended to read as 
follows:</DELETED>
                <DELETED>    ``(E) Buildings receiving home assistance 
                or native american housing assistance.--</DELETED>
                        <DELETED>    ``(i) In general.--</DELETED>
                                <DELETED>    ``(I) Inapplicability.--
                                Assistance provided under the HOME 
                                Investment Partnerships Act or the 
                                Native American Housing Assistance and 
                                Self-Determination Act of 1996 as in 
                                effect on the day before the date of 
                                enactment of the Native American 
                                Housing Assistance and Self-
                                Determination Act Amendments of 1997 
                                with respect to any building shall not 
                                be taken into account under 
                                subparagraph (D) if 40 percent or more 
                                of the residential units in the 
                                building are occupied by individuals 
                                whose income is 50 percent or less of 
                                the area median gross income.</DELETED>
                                <DELETED>    ``(II) Applicability of 
                                other law.--Subsection (d)(5)(C) does 
                                not apply to any building to which 
                                subclause (I) applies.</DELETED>
                        <DELETED>    ``(ii) Special rule for certain 
                        high-cost housing areas.--In the case of a 
                        building located in a city described in section 
                        142(d)(6), clause (i) shall be applied by 
                        substituting `25 percent' for `40 
                        percent'.''.</DELETED>
<DELETED>    (b) Applicability.--The amendment made by this section 
shall apply to determinations made under section 42(i)(2) of the 
Internal Revenue Code after the date of enactment of this 
Act.</DELETED>

<DELETED>SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS.</DELETED>

<DELETED>    (a) 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--</DELETED>
        <DELETED>    (1) by striking the item relating to section 206; 
        and</DELETED>
        <DELETED>    (2) by striking the item relating to section 209 
        and inserting the following:</DELETED>

<DELETED>``209. Noncompliance with affordable housing requirement.''.
<DELETED>    (b) Authorization of Appropriations.--Section 108 of the 
Native American Housing Assistance and Self-Determination Act of 1996 
(25 U.S.C. 4117) is amended to read as follows:</DELETED>

<DELETED>``SEC. 108. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``There are authorized to be appropriated for each of 
fiscal years 2000 through 2003--</DELETED>
        <DELETED>    ``(1) to provide assistance under this title for 
        emergencies and disasters, as determined by the Secretary, 
        $10,000,000; and</DELETED>
        <DELETED>    ``(2) such sums as may be necessary to otherwise 
        provide grants under this title.''.</DELETED>
<DELETED>    (c) 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.</DELETED>
<DELETED>    (d) Terminations.--Section 502(a) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4181(a)) is amended by adding at the end the following: ``Any housing 
that is the subject of a contract for tenant-based assistance between 
the Secretary and an Indian housing authority that is terminated under 
this section shall, for the following fiscal year and each fiscal year 
thereafter be considered to be a dwelling unit under section 
302(b)(1).''.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Native American 
Housing Assistance and Self-Determination Act Amendments of 1999''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Restriction on waiver authority.
Sec. 3. Assistance to families that are not low-income.
Sec. 4. Elimination of waiver authority for small tribes.
Sec. 5. Labor standards.
Sec. 6. Environmental compliance.
Sec. 7. Oversight.
Sec. 8. Allocation formula.
Sec. 9. Hearing requirement.
Sec. 10. Performance agreement time limit.
Sec. 11. Technical and conforming amendments.

SEC 2. RESTRICTION ON WAIVER AUTHORITY.

    (a) In General.--Section 101(b)(2) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4111(b)(2)) is 
amended by striking ``if the Secretary'' and all that follows through 
the period at the end and inserting the following: ``for a period of 
not more than 90 days, if the Secretary determines that an Indian tribe 
has not complied with, or is unable to comply with, those requirements 
due to exigent circumstances beyond the control of the Indian tribe.''.
    (b) 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).''.

SEC. 3. 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 by a recipient to Indian families that are not low-
        income families under section 201(b)(2), evidence that there is 
        a need for housing for each such family during that period that 
        cannot reasonably be met without such assistance.''.

SEC. 4. ELIMINATION OF WAIVER AUTHORITY FOR SMALL TRIBES.

    Section 102 of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4112) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).

SEC. 5. LABOR STANDARDS.

    Section 104(b)(1) of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4114(b)(1)) is amended--
            (1) by inserting ``relating to 12 or more units of housing 
        assisted under this Act'' after ``lease''; and
            (2) 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') (46 Stat. 1494, chapter 411; 40 U.S.C. 276a 
        et seq.)''.

SEC. 6. 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.''.

SEC. 7. OVERSIGHT.

    (a) Repayment.--Section 209 of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4139) is 
amended to read as follows:

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

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

SEC. 8. 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 2000 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 under subparagraph (A) 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.''.

SEC. 9. 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 indenting each 
        such subparagraph 2 ems to the right;
            (2) by striking ``Except as provided'' and inserting the 
        following:
            ``(1) In general.--Except as provided'';
            (3) by striking ``If the Secretary takes an action under 
        paragraph (1), (2), or (3)'' and inserting the following:
            ``(2) Continuance of actions.--If the Secretary takes an 
        action under subparagraph (A), (B), or (C) of paragraph (1)''; 
        and
            (4) by adding at the end the following:
            ``(3) Exception for certain actions.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection, if the Secretary makes a 
                determination that the failure of a recipient of 
                assistance under this Act to comply substantially with 
                any material provision (as that term is defined by the 
                Secretary) of this Act is resulting, and would continue 
                to result, in a continuing expenditure of Federal funds 
                in a manner that is not authorized by law, the 
                Secretary may take an action described in paragraph 
                (1)(C) before conducting a hearing.
                    ``(B) Procedural requirement.--If the Secretary 
                takes an action described in subparagraph (A), the 
                Secretary shall--
                            ``(i) provide notice to the recipient at 
                        the time that the Secretary takes that action; 
                        and
                            ``(ii) conduct a hearing not later than 60 
                        days after the date on which the Secretary 
                        provides notice under clause (i).
                    ``(C) Determination.--Upon completion of a hearing 
                under this paragraph, the Secretary shall make a 
                determination regarding whether to continue taking the 
                action that is the subject of the hearing, or take 
                another action under this subsection.''.

SEC. 10. 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 section--
                    (A) by adjusting the margin 2 ems to the right; 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).''.

SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) 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--
            (1) by striking the item relating to section 206; and
            (2) by striking the item relating to section 209 and 
        inserting the following:

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