II

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

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.
2

S 400 RIS

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

5 ‘‘Native American Housing Assistance and Self-Deter6 mination Act Amendments of 1999’’.

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

8 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Restriction on waiver authority.

Sec. 3. Organizational capacity; assistance to families that are not low-income.

Sec. 4. Elimination of waiver authority for small tribes.

Sec. 5. Expanded authority to review Indian housing plans.

Sec. 6. Oversight.

Sec. 7. Allocation formula.

Sec. 8. Hearing requirement.

Sec. 9. Performance agreement time limit.

Sec. 10. Block grants and guarantees not Federal subsidies for low-income

housing credit.

Sec. 11. Technical and conforming amendments.

9 SEC 2. RESTRICTION ON WAIVER AUTHORITY.

10 Section 101(b)(2) of the Native American Housing

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

12 4111(b)(2)) is amended by striking ‘‘if the Secretary’’ and

13 all that follows before the period at the end and inserting

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

15 the Secretary determines that an Indian tribe has not

16 complied with, or is unable to comply with, those require17 ments due to extreme circumstances beyond the control

18 of the Indian tribe’’.
3

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1 SEC. 3. ORGANIZATIONAL CAPACITY; ASSISTANCE TO FAMI2 LIES THAT ARE NOT LOW-INCOME.

3 (a) ORGANIZATIONAL CAPACITY.—Section 102(c)(4)

4 of the Native American Housing Assistance and Self-De5 termination Act (25 U.S.C. 4112(c)(4)) is amended—

6 (1) by redesignating subparagraphs (A) through

7 (K) as subparagraphs (B) through (L), respectively;

8 and

9 (2) by inserting before subparagraph (B), as re10 designated by paragraph (1) of this subsection, the

11 following:

12 ‘‘(A) a description of the entity that is respon13 sible for carrying out the activities under the plan,

14 including a description of—

15 ‘‘(i) the relevant personnel of the entity;

16 and

17 ‘‘(ii) the organizational capacity of the en18 tity, including—

19 ‘‘(I) the management structure of the

20 entity; and

21 ‘‘(II) the financial control mechanisms

22 of the entity;’’.

23 (b) ASSISTANCE TO FAMILIES THAT ARE NOT LOW24 INCOME.—Section 102(c) of the Native American Housing

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

26 4112) is amended by adding at the end the following:
4

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1 ‘‘(6) CERTAIN FAMILIES.—With respect to as2 sistance provided by a recipient to Indian families

3 that are not low-income families under section

4 201(b)(2), evidence that there is a need for housing

5 for each such family during that period that cannot

6 reasonably be met without such assistance.’’.

7 SEC. 4. ELIMINATION OF WAIVER AUTHORITY FOR SMALL

8 TRIBES.

9 Section 102 of the Native American Housing Assist10 ance and Self-Determination Act of 1996 (25 U.S.C.

11 4112) is amended—

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

13 (2) by redesignating subsection (g) as sub14 section (f).

15 SEC. 5. EXPANDED AUTHORITY TO REVIEW INDIAN HOUS16 ING PLANS.

17 Section 103(a)(1) of the Native American Housing

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

19 4113(a)(1)) is amended—

20 (1) in the first sentence, by striking ‘‘limited’’;

21 and

22 (2) by striking the second sentence.
5

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1 SEC. 6. OVERSIGHT.

2 (a) REPAYMENT.—Section 209 of the Native Amer3 ican Housing Assistance and Self-Determination Act of

4 1996 (25 U.S.C. 4139) is amended to read as follows:

5 ‘‘SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING

6 REQUIREMENT.

7 ‘‘If a recipient uses grant amounts to provide afford8 able housing under this title, and at any time during the

9 useful life of the housing the recipient does not comply

10 with the requirement under section 205(a)(2), the Sec11 retary shall take appropriate action under section

12 401(a).’’.

13 (b) AUDITS AND REVIEWS.—Section 405 of the Na14 tive American Housing Assistance and Self-Determination

15 Act of 1996 (25 U.S.C. 1465) is amended to read as fol16 lows:

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

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

19 31, UNITED STATES CODE.—

20 ‘‘(1) IN GENERAL.—An entity designated by an

21 Indian tribe as a housing entity shall be treated, for

22 purposes of chapter 75 of title 31, United States

23 Code, as a non-Federal entity that is subject to the

24 audit requirements that apply to non-Federal enti25 ties under that chapter.

26 ‘‘(2) PAYMENT OF COSTS.—
6

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1 ‘‘(A) IN GENERAL.—The Secretary may

2 arrange for, and pay the cost of, any audit re3 quired under paragraph (1).

4 ‘‘(B) WITHHOLDING OF AMOUNTS.—If the

5 Secretary pays for the cost of an audit under

6 subparagraph (A), the Secretary may withhold,

7 from the assistance otherwise payable under

8 this Act, an amount sufficient to pay for the

9 reasonable costs of conducting an audit that

10 meets the applicable requirements of chapter 75

11 of title 31, United States Code, including, if ap12 propriate, the reasonable costs of accounting

13 services necessary to ensure that the books and

14 records of the entity referred to in paragraph

15 (1) are in such condition as is necessary to

16 carry out the audit.

17 ‘‘(b) ADDITIONAL REVIEWS AND AUDITS.—

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

19 under subsection (a)(1), to the extent the Secretary

20 determines such action to be appropriate, the Sec21 retary may conduct an audit of a recipient in order

22 to—

23 ‘‘(A) determine whether the recipient—

24 ‘‘(i) has carried out—
7

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1 ‘‘(I) eligible activities in a timely

2 manner; and

3 ‘‘(II) eligible activities and cer4 tification in accordance with this Act

5 and other applicable law;

6 ‘‘(ii) has a continuing capacity to

7 carry out eligible activities in a timely

8 manner; and

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

10 housing plan of the recipient; and

11 ‘‘(B) verify the accuracy of information

12 contained in any performance report submitted

13 by the recipient under section 404.

14 ‘‘(2) ONSITE VISITS.—To the extent prac15 ticable, the reviews and audits conducted under this

16 subsection shall include onsite visits by the appro17 priate official of the Department of Housing and

18 Human Development.

19 ‘‘(c) REVIEW OF REPORTS.—

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

21 each recipient that is the subject of a report made

22 by the Secretary under this section notice that the

23 recipient may review and comment on the report

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

25 date on which notice is issued under this paragraph.
8

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

2 consideration any comments of the recipient under

3 paragraph (1), the Secretary—

4 ‘‘(A) may revise the report; and

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

6 on which those comments are received, shall

7 make the comments and the report (with any

8 revisions made under subparagraph (A)) readily

9 available to the public.

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

11 401(a), after reviewing the reports and audits relating to

12 a recipient that are submitted to the Secretary under this

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

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

15 findings of the Secretary with respect to those reports and

16 audits.’’.

17 SEC. 7. ALLOCATION FORMULA.

18 Section 302(d)(1) of the Native American Housing

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

20 4152(d)(1)) is amended—

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

22 the following:

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

24 an Indian tribe described in subparagraph (B),

25 the formula’’; and
9

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

2 ‘‘(B) CERTAIN INDIAN TRIBES.—With re3 spect to fiscal year 2000 and each fiscal year

4 thereafter, with respect to any Indian tribe hav5 ing an Indian housing authority that owns or

6 operates fewer than 250 public housing units,

7 the formula under subparagraph (A) shall pro8 vide that the amount provided for a fiscal year

9 in which the total amount made available for

10 assistance under this Act is equal to or greater

11 than the amount made available for fiscal year

12 1996 for assistance for the operation and mod13 ernization of the public housing referred to in

14 subparagraph (A), the amount provided to that

15 Indian tribe as modernization assistance shall

16 be equal to the average annual amount of funds

17 provided to the Indian tribe (other than funds

18 provided as emergency assistance) under the as19 sistance program under section 14 of the

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

21 1437l) for the period beginning with fiscal year

22 1992 and ending with fiscal year 1997.’’.
10

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1 SEC. 8. HEARING REQUIREMENT.

2 Section 401(a) of the Native American Housing As3 sistance and Self-Determination Act of 1996 (25 U.S.C.

4 4161(a)) is amended—

5 (1) by redesignating paragraphs (1) through

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

7 and indenting each such subparagraph 2 ems to the

8 right;

9 (2) by striking ‘‘Except as provided’’ and in10 serting the following:

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

12 (3) by striking ‘‘If the Secretary takes an ac13 tion under paragraph (1), (2), or (3)’’ and inserting

14 the following:

15 ‘‘(2) CONTINUANCE OF ACTIONS.—If the Sec16 retary takes an action under subparagraph (A), (B),

17 or (C) of paragraph (1)’’; and

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

19 ‘‘(3) EXCEPTION FOR CERTAIN ACTIONS.—

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

21 other provision of this subsection, if the Sec22 retary makes a determination that the failure of

23 a recipient of assistance under this Act to com24 ply substantially with any material provision (as

25 that term is defined by the Secretary) of this

26 Act is resulting, and would continue to result,
11

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1 in a continuing expenditure of Federal funds in

2 a manner that is not authorized by law, the

3 Secretary may take an action described in para4 graph (1)(C) before conducting a hearing.

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

6 Secretary takes an action described in subpara7 graph (A), the Secretary shall—

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

9 the time that the Secretary takes that ac10 tion; and

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

12 60 days after the date on which the Sec13 retary provides notice under clause (i).

14 ‘‘(C) DETERMINATION.—Upon completion

15 of a hearing under this paragraph, the Sec16 retary shall make a determination regarding

17 whether to continue taking the action that is

18 the subject of the hearing, or take another ac19 tion under this subsection.’’.

20 SEC. 9. PERFORMANCE AGREEMENT TIME LIMIT.

21 Section 401(b) of the Native American Housing As22 sistance and Self-Determination Act of 1996 (25 U.S.C.

23 4161(b)) is amended—

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

25 the following:
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1 ‘‘(1) IN GENERAL.—If the Secretary’’;

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

3 following:

4 ‘‘(A) is not’’;

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

6 the following:

7 ‘‘(B) is a result:

8 (4) in the flush material following paragraph

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

10 section—

11 (A) by adjusting the margin 2 ems to the

12 right; and

13 (B) by inserting before the period at the

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

15 a performance agreement with the Secretary

16 that specifies the compliance objectives that the

17 recipient will be required to achieve by the ter18 mination date of the performance agreement’’;

19 and

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

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

22 of a performance agreement described in paragraph

23 (1) shall be for 1 year.

24 ‘‘(3) REVIEW.—Upon the termination of a per25 formance agreement entered into under paragraph
13

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

2 the recipient that is a party to the agreement.

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

4 a review under paragraph (3), the Secretary deter5 mines that the recipient—

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

7 the compliance objectives specified in the agree8 ment, the Secretary may enter into an addi9 tional performance agreement for the period

10 specified in paragraph (2); and

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

12 to meet applicable compliance objectives, the

13 Secretary shall determine the recipient to have

14 failed to comply substantially with this Act, and

15 the recipient shall be subject to an action under

16 subsection (a).’’.

17 SEC. 10. BLOCK GRANTS AND GUARANTEES NOT FEDERAL

18 SUBSIDIES FOR LOW-INCOME HOUSING

19 CREDIT.

20 (a) IN GENERAL.—Subparagraph (E) of section

21 42(i)(2) of the Internal Revenue Code of 1986 (relating

22 to determination of whether building is federally sub23 sidized) is amended to read as follows:
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1 ‘‘(E) BUILDINGS RECEIVING HOME ASSIST2 ANCE OR NATIVE AMERICAN HOUSING ASSIST3 ANCE.—

4 ‘‘(i) IN GENERAL.—

5 ‘‘(I) INAPPLICABILITY.—Assist6 ance provided under the HOME In7 vestment Partnerships Act or the Na8 tive American Housing Assistance and

9 Self-Determination Act of 1996 as in

10 effect on the day before the date of

11 enactment of the Native American

12 Housing Assistance and Self-Deter13 mination Act Amendments of 1997

14 with respect to any building shall not

15 be taken into account under subpara16 graph (D) if 40 percent or more of

17 the residential units in the building

18 are occupied by individuals whose in19 come is 50 percent or less of the area

20 median gross income.

21 ‘‘(II) APPLICABILITY OF OTHER

22 LAW.—Subsection (d)(5)(C) does not

23 apply to any building to which sub24 clause (I) applies.
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1 ‘‘(ii) SPECIAL RULE FOR CERTAIN

2 HIGH-COST HOUSING AREAS.—In the case

3 of a building located in a city described in

4 section 142(d)(6), clause (i) shall be ap5 plied by substituting ‘25 percent’ for ‘40

6 percent’.’’.

7 (b) APPLICABILITY.—The amendment made by this

8 section shall apply to determinations made under section

9 42(i)(2) of the Internal Revenue Code after the date of

10 enactment of this Act.

11 SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS.

12 (a) TABLE OF CONTENTS.—Section 1(b) of the Na13 tive American Housing Assistance and Self-Determination

14 Act of 1996 (25 U.S.C. 4101 note) is amended in the table

15 of contents—

16 (1) by striking the item relating to section 206;

17 and

18 (2) by striking the item relating to section 209

19 and inserting the following:

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

20 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

21 108 of the Native American Housing Assistance and Self22 Determination Act of 1996 (25 U.S.C. 4117) is amended

23 to read as follows:
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1 ‘‘SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated for each of

3 fiscal years 2000 through 2003—

4 ‘‘(1) to provide assistance under this title for

5 emergencies and disasters, as determined by the

6 Secretary, $10,000,000; and

7 ‘‘(2) such sums as may be necessary to other8 wise provide grants under this title.’’.

9 (c) CERTIFICATION OF COMPLIANCE WITH SUBSIDY

10 LAYERING REQUIREMENTS.—Section 206 of the Native

11 American Housing Assistance and Self-Determination Act

12 of 1996 (25 U.S.C. 4136) is repealed.

13 (d) TERMINATIONS.—Section 502(a) of the Native

14 American Housing Assistance and Self-Determination Act

15 of 1996 (25 U.S.C. 4181(a)) is amended by adding at the

16 end the following: ‘‘Any housing that is the subject of a

17 contract for tenant-based assistance between the Secretary

18 and an Indian housing authority that is terminated under

19 this section shall, for the following fiscal year and each

20 fiscal year thereafter be considered to be a dwelling unit

21 under section 302(b)(1).’’.

22 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

23 (a) SHORT TITLE.—This Act may be cited as the ‘‘Na24 tive American Housing Assistance and Self-Determination

25 Act Amendments of 1999’’.
17

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

2 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.

3 SEC 2. RESTRICTION ON WAIVER AUTHORITY.

4 (a) IN GENERAL.—Section 101(b)(2) of the Native

5 American Housing Assistance and Self-Determination Act

6 of 1996 (25 U.S.C. 4111(b)(2)) is amended by striking ‘‘if

7 the Secretary’’ and all that follows through the period at

8 the end and inserting the following: ‘‘for a period of not

9 more than 90 days, if the Secretary determines that an In10 dian tribe has not complied with, or is unable to comply

11 with, those requirements due to exigent circumstances be12 yond the control of the Indian tribe.’’.

13 (b) LOCAL COOPERATION AGREEMENT.—Section

14 101(c) of the Native American Housing Assistance and Self15 Determination Act of 1996 (25 U.S.C. 4111(c)) is amended

16 by adding at the end the following: ‘‘The Secretary may

17 waive the requirements of this subsection and subsection (d)

18 if the recipient has made a good faith effort to fulfill the

19 requirements of this subsection and subsection (d) and

20 agrees to make payments in lieu of taxes to the appropriate
18

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1 taxing authority in an amount consistent with the require2 ments of subsection (d)(2) until such time as the matter

3 of making such payments has been resolved in accordance

4 with subsection (d).’’.

5 SEC. 3. ASSISTANCE TO FAMILIES THAT ARE NOT LOW-IN6 COME.

7 Section 102(c) of the Native American Housing Assist8 ance and Self-Determination Act of 1996 (25 U.S.C.

9 4112(c)) is amended by adding at the end the following:

10 ‘‘(6) CERTAIN FAMILIES.—With respect to assist11 ance provided by a recipient to Indian families that

12 are not low-income families under section 201(b)(2),

13 evidence that there is a need for housing for each such

14 family during that period that cannot reasonably be

15 met without such assistance.’’.

16 SEC. 4. ELIMINATION OF WAIVER AUTHORITY FOR SMALL

17 TRIBES.

18 Section 102 of the Native American Housing Assist19 ance and Self-Determination Act of 1996 (25 U.S.C. 4112)

20 is amended—

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

22 (2) by redesignating subsection (g) as subsection

23 (f).
19

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1 SEC. 5. LABOR STANDARDS.

2 Section 104(b)(1) of the Native American Housing As3 sistance and Self-Determination Act of 1996 (25 U.S.C.

4 4114(b)(1)) is amended—

5 (1) by inserting ‘‘relating to 12 or more units of

6 housing assisted under this Act’’ after ‘‘lease’’; and

7 (2) by striking ‘‘Davis-Bacon Act (40 U.S.C.

8 276a-276a-5)’’ and inserting ‘‘Act of March 3, 1931

9 (commonly known as the ‘Davis-Bacon Act’) (46 Stat.

10 1494, chapter 411; 40 U.S.C. 276a et seq.)’’.

11 SEC. 6. ENVIRONMENTAL COMPLIANCE.

12 Section 105 of the Native American Housing Assist13 ance and Self-Determination Act of 1996 (25 U.S.C. 4115)

14 is amended by adding at the end the following:

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

16 may waive the requirements under this section if the Sec17 retary determines that a failure on the part of a recipient

18 to comply with provisions of this section—

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

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

21 seq.) or any other provision of law that furthers the

22 goals of that Act;

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

24 community involved by posing an immediate or long25 term hazard to residents of that community;
20

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

2 an incorrect or incomplete certification provided

3 under subsection (c)(1); and

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

5 the recipient.’’.

6 SEC. 7. OVERSIGHT.

7 (a) REPAYMENT.—Section 209 of the Native American

8 Housing Assistance and Self-Determination Act of 1996 (25

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

10 ‘‘SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING

11 REQUIREMENT.

12 ‘‘If a recipient uses grant amounts to provide afford13 able housing under this title, and at any time during the

14 useful life of the housing the recipient does not comply with

15 the requirement under section 205(a)(2), the Secretary shall

16 take appropriate action under section 401(a).’’.

17 (b) AUDITS AND REVIEWS.—Section 405 of the Native

18 American Housing Assistance and Self-Determination Act

19 of 1996 (25 U.S.C. 4165) is amended to read as follows:

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

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

22 31, UNITED STATES CODE.—An entity designated by an

23 Indian tribe as a housing entity shall be treated, for pur24 poses of chapter 75 of title 31, United States Code, as a
21

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1 non-Federal entity that is subject to the audit requirements

2 that apply to non-Federal entities under that chapter.

3 ‘‘(b) ADDITIONAL REVIEWS AND AUDITS.—

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

5 review under subsection (a), to the extent the Sec6 retary determines such action to be appropriate, the

7 Secretary may conduct an audit or review of a re8 cipient in order to—

9 ‘‘(A) determine whether the recipient—

10 ‘‘(i) has carried out—

11 ‘‘(I) eligible activities in a timely

12 manner; and

13 ‘‘(II) eligible activities and certifi14 cation in accordance with this Act and

15 other applicable law;

16 ‘‘(ii) has a continuing capacity to

17 carry out eligible activities in a timely

18 manner; and

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

20 housing plan of the recipient; and

21 ‘‘(B) verify the accuracy of information

22 contained in any performance report submitted

23 by the recipient under section 404.

24 ‘‘(2) ONSITE VISITS.—To the extent practicable,

25 the reviews and audits conducted under this sub-
22

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1 section shall include onsite visits by the appropriate

2 official of the Department of Housing and Urban De3 velopment.

4 ‘‘(c) REVIEW OF REPORTS.—

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

6 each recipient that is the subject of a report made by

7 the Secretary under this section notice that the recipi8 ent may review and comment on the report during a

9 period of not less than 30 days after the date on

10 which notice is issued under this paragraph.

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

12 consideration any comments of the recipient under

13 paragraph (1), the Secretary—

14 ‘‘(A) may revise the report; and

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

16 on which those comments are received, shall

17 make the comments and the report (with any re18 visions made under subparagraph (A)) readily

19 available to the public.

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

21 after reviewing the reports and audits relating to a recipi22 ent that are submitted to the Secretary under this section,

23 the Secretary may adjust the amount of a grant made to

24 a recipient under this Act in accordance with the findings

25 of the Secretary with respect to those reports and audits.’’.
23

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1 SEC. 8. ALLOCATION FORMULA.

2 Section 302(d)(1) of the Native American Housing As3 sistance and Self-Determination Act of 1996 (25 U.S.C.

4 4152(d)(1)) is amended—

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

6 following:

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

8 an Indian tribe described in subparagraph (B),

9 the formula’’; and

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

11 ‘‘(B) CERTAIN INDIAN TRIBES.—With re12 spect to fiscal year 2000 and each fiscal year

13 thereafter, for any Indian tribe with an Indian

14 housing authority that owns or operates fewer

15 than 250 public housing units, the formula

16 under subparagraph (A) shall provide that if the

17 amount provided for a fiscal year in which the

18 total amount made available for assistance under

19 this Act is equal to or greater than the amount

20 made available for fiscal year 1996 for assistance

21 for the operation and modernization of the pub22 lic housing referred to in subparagraph (A), then

23 the amount provided to that Indian tribe as

24 modernization assistance shall be equal to the

25 average annual amount of funds provided to the

26 Indian tribe (other than funds provided as emer-
24

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1 gency assistance) under the assistance program

2 under section 14 of the United States Housing

3 Act of 1937 (42 U.S.C. 1437l) for the period be4 ginning with fiscal year 1992 and ending with

5 fiscal year 1997.’’.

6 SEC. 9. HEARING REQUIREMENT.

7 Section 401(a) of the Native American Housing Assist8 ance and Self-Determination Act of 1996 (25 U.S.C.

9 4161(a)) is amended—

10 (1) by redesignating paragraphs (1) through (4)

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

12 indenting each such subparagraph 2 ems to the right;

13 (2) by striking ‘‘Except as provided’’ and insert14 ing the following:

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

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

17 under paragraph (1), (2), or (3)’’ and inserting the

18 following:

19 ‘‘(2) CONTINUANCE OF ACTIONS.—If the Sec20 retary takes an action under subparagraph (A), (B),

21 or (C) of paragraph (1)’’; and

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

23 ‘‘(3) EXCEPTION FOR CERTAIN ACTIONS.—

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

25 other provision of this subsection, if the Sec-
25

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1 retary makes a determination that the failure of

2 a recipient of assistance under this Act to com3 ply substantially with any material provision

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

5 Act is resulting, and would continue to result, in

6 a continuing expenditure of Federal funds in a

7 manner that is not authorized by law, the Sec8 retary may take an action described in para9 graph (1)(C) before conducting a hearing.

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

11 Secretary takes an action described in subpara12 graph (A), the Secretary shall—

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

14 the time that the Secretary takes that ac15 tion; and

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

17 60 days after the date on which the Sec18 retary provides notice under clause (i).

19 ‘‘(C) DETERMINATION.—Upon completion of

20 a hearing under this paragraph, the Secretary

21 shall make a determination regarding whether to

22 continue taking the action that is the subject of

23 the hearing, or take another action under this

24 subsection.’’.
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1 SEC. 10. PERFORMANCE AGREEMENT TIME LIMIT.

2 Section 401(b) of the Native American Housing Assist3 ance and Self-Determination Act of 1996 (25 U.S.C.

4 4161(b)) is amended—

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

6 the following:

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

8 (2) by striking ‘‘(1) is not’’ and inserting the fol9 lowing:

10 ‘‘(A) is not’’;

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

12 the following:

13 ‘‘(B) is a result’’;

14 (4) in the flush material following paragraph

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

16 section—

17 (A) by adjusting the margin 2 ems to the

18 right; and

19 (B) by inserting before the period at the end

20 the following: ‘‘, if the recipient enters into a

21 performance agreement with the Secretary that

22 specifies the compliance objectives that the recipi23 ent will be required to achieve by the termi24 nation date of the performance agreement’’; and

25 (5) by adding at the end the following:
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1 ‘‘(2) PERFORMANCE AGREEMENT.—The period of

2 a performance agreement described in paragraph (1)

3 shall be for 1 year.

4 ‘‘(3) REVIEW.—Upon the termination of a per5 formance agreement entered into under paragraph

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

7 recipient that is a party to the agreement.

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

9 review under paragraph (3), the Secretary determines

10 that the recipient—

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

12 the compliance objectives specified in the agree13 ment, the Secretary may enter into an addi14 tional performance agreement for the period

15 specified in paragraph (2); and

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

17 to meet applicable compliance objectives, the Sec18 retary shall determine the recipient to have

19 failed to comply substantially with this Act, and

20 the recipient shall be subject to an action under

21 subsection (a).’’.

22 SEC. 11. TECHNICAL AND CONFORMING AMENDMENTS.

23 (a) TABLE OF CONTENTS.—Section 1(b) of the Native

24 American Housing Assistance and Self-Determination Act
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1 of 1996 (25 U.S.C. 4101 note) is amended in the table of

2 contents—

3 (1) by striking the item relating to section 206;

4 and

5 (2) by striking the item relating to section 209

6 and inserting the following:

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

7 (b) CERTIFICATION OF COMPLIANCE WITH SUBSIDY

8 LAYERING REQUIREMENTS.—Section 206 of the Native

9 American Housing Assistance and Self-Determination Act

10 of 1996 (25 U.S.C. 4136) is repealed.

11 (c) TERMINATIONS.—Section 502(a) of the Native

12 American Housing Assistance and Self-Determination Act

13 of 1996 (25 U.S.C. 4181(a)) is amended by adding at the

14 end the following: ‘‘Any housing that is the subject of a con15 tract for tenant-based assistance between the Secretary and

16 an Indian housing authority that is terminated under this

17 section shall, for the following fiscal year and each fiscal

18 year thereafter, be considered to be a dwelling unit under

19 section 302(b)(1).’’.

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