II

103D CONGRESS

2D SESSION S. 2150

To establish a Native Hawaiian housing program.

IN THE SENATE OF THE UNITED STATES

MAY 25 (legislative day, MAY 16), 1994

Mr. INOUYE (for himself and Mr. AKAKA) introduced the following bill; which

was read twice and referred to the Committee on Indian Affairs

A BILL

To establish a Native Hawaiian housing program.

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 Hawaiian Housing Assistance Act of 1994’’.

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

7 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Declaration of policy.

Sec. 4. Purposes.

TITLE I—HOUSING ASSISTANCE

Sec. 101. General provisions.

Sec. 102. Loan guarantees for Native Hawaiian housing.

TITLE II—HOME INVESTMENT PARTNERSHIPS
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Sec. 201. Native Hawaiian eligibility for the HOME program.

TITLE III—COMMUNITY DEVELOPMENT BLOCK GRANTS

Sec. 301. Native Hawaiian eligibility for CDBG.

Sec. 302. Native Hawaiian allocation.

Sec. 303. Definitions.

TITLE IV—HOUSING STANDARDS

Sec. 401. Housing subdivision development.

Sec. 402. Demonstration project to develop localized housing standards for Native Hawaiian communities.

TITLE V—GENERAL PROVISIONS

Sec. 501. Definitions.

Sec. 502. Legal obligations of the United States.

Sec. 503. Severability.

Sec. 504. Regulations.

Sec. 505. Authorization of appropriations.

1 SEC. 2. FINDINGS.

2 The Congress makes the following findings:

3 (1) Native Hawaiians are a distinct and unique

4 indigenous people with a historical continuity to the

5 original inhabitants of the Hawaiian archipelago

6 whose society was organized as a Nation and inter7 nationally recognized as such prior to the arrival of

8 the first nonindigenous people in 1778.

9 (2) At the time of the arrival of the first

10 nonindigenous people in Hawaii in 1778, the Native

11 Hawaiian people lived in a highly organized, self-suf12 ficient subsistence social system based on a com13 munal land tenure system with a sophisticated lan14 guage, culture, and religion.

15 (3) It is estimated that there were 1,000,000

16 Native Hawaiians inhabiting Hawaii at the time of
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1 the arrival of the first nonindigenous people in 1778.

2 Due to the devastating physical, cultural, social,

3 emotional, and spiritual effects of western contact,

4 however, the Native Hawaiian population was nearly

5 decimated. In 1826, the population had decreased to

6 an estimated 142,650 Hawaiians.

7 (4) In 1893, the sovereign, independent, inter8 nationally recognized, and indigenous government of

9 Hawaii, the Kingdom of Hawaii, was overthrown by

10 a small group of non-Hawaiians, including United

11 States citizens, who were assisted in their efforts by

12 the United States Minister, a United States naval

13 representative, and armed naval forces of the United

14 States. In 1993, because of the participation of

15 United States agents and citizens in the overthrow

16 of the Kingdom of Hawaii, the Congress, on behalf

17 of the people of the United States, apologized to Na18 tive Hawaiians for the overthrow and the deprivation

19 of the rights of Native Hawaiians to self determina20 tion in the Joint Resolution entitled ‘‘Joint Resolu21 tion to acknowledge the 100th anniversary of the

22 January 17, 1893 overthrow of the Kingdom of Ha23 waii, and to offer an apology to Native Hawaiians on

24 behalf of the United States for the overthrow of the
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1 Kingdom of Hawaii,’’ approved November 23, 1993

2 (107 Stat. 1510).

3 (5) In 1898, the Joint Resolution entitled

4 ‘‘Joint Resolution to provide for annexing the Ha5 waiian Islands to the United States’’, approved July

6 7, 1898 (30 Stat. 750), ceded absolute title of all

7 public lands held by the Republic of Hawaii, includ8 ing the government and crown lands of the former

9 Kingdom of Hawaii, to the United States, but man10 dated that revenue generated from these lands be

11 used ‘‘solely for the benefit of the inhabitants of the

12 Hawaiian Islands for educational and other public

13 purposes’’.

14 (6) By 1919, the Native Hawaiian population

15 had declined to an alarming 22,600 people, and in

16 recognition of this severe decline, the Congress in

17 1921 enacted the Hawaiian Homes Commission Act,

18 1920, which designated approximately 200,000 acres

19 of the ceded public lands for homesteading by Native

20 Hawaiians.

21 (7) Through the enactment of the Hawaiian

22 Homes Commission Act, 1920, the Congress af23 firmed the special relationship between the United

24 States and the Native Hawaiians. As then Secretary

25 of the Interior Franklin K. Lane was quoted in the
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1 committee report for the Hawaiian Homes Commis2 sion Act, 1920: ‘‘One thing that impressed me . . .

3 was the fact that the natives of the islands who are

4 our wards, I should say, and for whom in a sense

5 we are trustees, are falling off rapidly in numbers

6 and many are in poverty.

7 (8) In 1959, under the Act entitled ‘‘An Act to

8 provide for the admission of the State of Hawaii into

9 the Union’’, approved March 18, 1959 (73 Stat. 4),

10 the United States transferred responsibility for the

11 administration of the Hawaiian Home Lands to the

12 State of Hawaii but reaffirmed the special relation13 ship which existed between the United States and

14 the Hawaiian people by retaining the exclusive power

15 to enforce the trust, including the power to approve

16 land exchanges and legislative amendments affecting

17 the rights of beneficiaries under such Act.

18 (9) In 1959, under the Act entitled ‘‘An Act to

19 provide for the admission of the State of Hawaii into

20 the Union’’, approved March 18, 1959 (73 Stat. 4),

21 the United States ceded to the State of Hawaii title

22 to the public lands formerly held by the United

23 States, but mandated that such lands be held by the

24 State ‘‘in public trust’’ and reaffirmed the special

25 relationship which existed between the United States
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1 and the Hawaiian people by retaining the legal re2 sponsibility to enforce the public trust responsibility

3 for the betterment of the conditions of Native Ha4 waiians (as defined in the Hawaiian Homes Commis5 sion Act, 1920).

6 (10) The United States assumed special respon7 sibilities for Native Hawaiian lands and resources at

8 the time of the annexation of the Territory in 1898,

9 upon adoption of the Hawaiian Homes Commission

10 Act, 1920, in 1921, and upon admission of the State

11 of Hawaii into the Union in 1959, and has retained

12 certain of those responsibilities.

13 (11) In recognition of the special relationship

14 which exists between the United States and the Na15 tive Hawaiian people, the United States has ex16 tended to Native Hawaiians the same rights and

17 privileges accorded to American Indian, Alaska Na18 tive, Eskimo, and Aleut communities under the Na19 tive American Programs Act of 1974, the American

20 Indian Religious Freedom Act, the National Mu21 seum of the American Indian Act, the Native Amer22 ican Graves Protection and Repatriation Act, the

23 National Historic Preservation Act, and the Native

24 American Languages Act.
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1 (12) In recognition of the special relationship

2 which exists between the United States and the Na3 tive Hawaiian people, the Congress has enacted nu4 merous special provisions of law for the benefit of

5 Native Hawaiians in the areas of health, education,

6 and labor, including those found in the Older Ameri7 cans Act of 1965, the Developmental Disabilities As8 sistance and Bill of Rights Act Amendments of

9 1987, the Veterans’ Benefits and Services Act of

10 1988, the Native Hawaiian Health Care Act of

11 1988, and the Native Hawaiian Education Act of

12 1988.

13 (13) The special relationship which exists be14 tween the United States and the Native Hawaiian

15 people has also been consistently recognized and af16 firmed by the Congress in the area of housing—

17 (A) through the authorization of mortgage

18 loans insured by the Federal Housing Adminis19 tration for the purchase, construction, or refi20 nancing of homes on Hawaiian Home Lands

21 under the National Housing Act;

22 (B) by mandating Native Hawaiian rep23 resentation on the National Commission on

24 American Indian, Alaska Native, and Native
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1 Hawaiian Housing (hereafter in this Act re2 ferred to as the ‘‘Commission’’); and

3 (C) by the inclusion of Native Hawaiians

4 in the Native American Veterans’ Home Loan

5 Equity Act of 1993.

6 (14) Despite the enactment of housing pro7 grams for Native Hawaiians, the housing needs of

8 Native Hawaiians continue to be severe, and in

9 1991, the Congress acknowledged the seriousness of

10 the Native Hawaiian housing needs through the es11 tablishment of the Commission.

12 (15) In 1993, the Commission concluded in its

13 report that the unique circumstances of Native Ha14 waiians required that new legislation be enacted to

15 alleviate and address the severe housing needs of the

16 Native Hawaiians. Among the Commission’s findings

17 were that—

18 (A) Native Hawaiians are seriously over19 represented in the State’s homeless population;

20 (B) of those applicants on the waiting list

21 for Hawaiian Home Lands, 19.5 percent of the

22 applicants and 17.8 percent of their spouses are

23 unemployed, a substantially higher rate than

24 the general State population;
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1 (C) the average Native Hawaiian house2 hold size is 4.25 persons, as compared to the

3 statewide average of 2.97 persons; and

4 (D) the median Native Hawaiian family in5 come is substantially below the 1988 State av6 erage of $39,600.

7 (16) The Commission further found that Native

8 Hawaiians have the worst housing conditions in the

9 State of Hawaii and the highest percentage of home10 lessness, representing over 30 percent of the State’s

11 homeless population and that Native Hawaiians, like

12 American Indians and Alaska Natives, suffer lack of

13 access to conventional financing due to the trust sta14 tus of their home lands and a frequent inability to

15 meet income requirements.

16 (17) The Commission recommended that the

17 Congress remedy the housing problems facing Native

18 Hawaiians by extending to them the same Federal

19 housing assistance available to American Indians

20 and Alaska Natives under the Low-Income Rental,

21 Mutual Help, Loan Guarantee, and Community De22 velopment Block Grant programs of the Department

23 of Housing and Urban Development.

24 (18) Despite the creation of Federal housing

25 programs designed to benefit low- and moderate-in-
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1 come families, Native Hawaiian families residing on

2 Hawaiian Homelands have been precluded from ac3 cess to these programs because of the exclusive na4 ture of the trust lands, thus denying to Native Ha5 waiians those same benefits available to all other

6 qualified Americans.

7 (19) In 1993, the United States, in recognition

8 of the housing needs of all Native Hawaiian families,

9 whether residing on the Hawaiian homelands or off,

10 included Native Hawaiians in a study of American

11 Indian and Alaska Native housing needs being con12 ducted by the Urban Institute of the Department of

13 Housing and Urban Development.

14 (20) The utilization of ceded lands for the pur15 pose of developing housing for Native Hawaiians is

16 consistent with 2 of the 5 purposes set forth in sec17 tion 5(f) of ‘‘An Act to provide for the admission of

18 the State of Hawaii into the Union’’, approved

19 March 18, 1959 (73 Stat. 4). Specifically, such utili20 zation is for the betterment of the conditions of Na21 tive Hawaiians (as defined in the Hawaiian Homes

22 Commission Act, 1920) and for the development of

23 farm and home ownership on as widespread a basis

24 as possible.
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1 SEC. 3. DECLARATION OF POLICY.

2 The Congress declares that it is the policy of the

3 United States—

4 (1) to promote the general welfare of the Na5 tion by employing its funds and credit, as provided

6 in this Act, to remedy the unsafe and unsanitary

7 housing conditions and the acute shortage of decent,

8 safe, and sanitary dwellings for families of lower in9 come and, consistent with the objectives of this Act,

10 to vest in local housing agencies the maximum

11 amount of responsibility in the administration of

12 their housing programs;

13 (2) to remedy the severe housing crisis within

14 the Native Hawaiian community, consistent with the

15 United States’ special responsibilities and legal obli16 gations to the indigenous people of Hawaii resulting

17 from the unique and historical relationship between

18 the United States and the Native Hawaiian people;

19 and

20 (3) to encourage the maximum participation of

21 Native Hawaiian communities and community-based

22 organizations in the planning and development of

23 housing programs established under this Act.

24 SEC. 4. PURPOSES.

25 The purposes of this Act are—
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1 (1) to amend the United States Housing Act of

2 1937 by adding a new title to establish and imple3 ment a general program of assisted housing for Na4 tive Hawaiians;

5 (2) to amend the Housing and Community De6 velopment Act of 1992 to establish and implement a

7 loan guarantee program for Native Hawaiians;

8 (3) to amend the Cranston-Gonzalez National

9 Affordable Housing Act to establish Native Hawai10 ian eligibility for the HOME program; and

11 (4) to amend the Housing and Community De12 velopment Act of 1974 to provide eligibility, alloca13 tion, and fund distribution to Native Hawaiians for

14 community development block grants.

15 TITLE I—HOUSING ASSISTANCE

16 SEC. 101. GENERAL PROVISIONS.

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

18 1437 et seq.) is amended by adding at the end the follow19 ing new title:
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1 ‘‘TITLE IV—ASSISTED HOUSING

2 FOR NATIVE HAWAIIANS

3 ‘‘SEC. 401. GENERAL AUTHORITY TO PROVIDE ASSISTED

4 HOUSING FOR NATIVE HAWAIIANS.

5 ‘‘(a) IN GENERAL.—The Secretary shall carry out

6 programs to provide low-income housing on Native Hawai7 ian lands in accordance with the provisions of this title.

8 ‘‘(b) INAPPLICABILITY OF TITLES I AND II.—No pro9 vision of title I or title II shall apply to housing developed

10 or operated pursuant to a contract between the Secretary

11 and a Native Hawaiian Housing Authority under this title,

12 unless the provision or a provision of this title explicitly

13 provides for such applicability.

14 ‘‘SEC. 402. DEFINITIONS.

15 ‘‘For purposes of this title, the following definitions

16 shall apply:

17 ‘‘(1) ADJUSTED INCOME.—The term ‘adjusted

18 income’ means the income which remains after ex19 cluding—

20 ‘‘(A) $550 for each member of the family

21 residing in the household (other than the head

22 of the household or their spouse) who is under

23 18 years of age or who is 18 years of age or

24 older and is disabled or handicapped or a full25 time student;
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1 ‘‘(B) $400 for any elderly family;

2 ‘‘(C) the amount by which the aggregate of

3 the following expenses of the family exceeds 3

4 percent of annual family income—

5 ‘‘(i) medical expenses for any family;

6 and

7 ‘‘(ii) reasonable attendant care and

8 auxiliary apparatus expenses for each

9 handicapped member of any family, to the

10 extent necessary to enable any member of

11 such family (including such handicapped

12 member) to be employed;

13 ‘‘(D)(i) child care expenses to the extent

14 necessary to enable another member of the fam15 ily to be employed or to further such family

16 member’s education; or

17 ‘‘(ii) excessive travel expenses, not to ex18 ceed $25 per family per week, for employment

19 or education related travel, except that this

20 clause shall apply only to families assisted by

21 Native Hawaiian Housing Authorities;

22 ‘‘(E) 10 percent of the earned income of

23 the family; and

24 ‘‘(F) any payment made by a member of

25 the family for the support and maintenance of
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1 any child, spouse, or former spouse who does

2 not reside in the household, except that the

3 amount excluded under this subparagraph shall

4 not exceed the lesser of—

5 ‘‘(i) the amount that such family

6 member has a legal obligation to pay; or

7 ‘‘(ii) $550 for each individual for

8 whom such payment is made.

9 ‘‘(2) COMMUNITY-BASED.—The term ‘commu10 nity-based’ means an organization that—

11 ‘‘(A) is exempt from taxation under section

12 501(c)(3) of the Internal Revenue Code of

13 1986;

14 ‘‘(B) is not a governmental entity; and

15 ‘‘(C) is representative of a community or a

16 significant segment of a community or is en17 gaged in providing services to the community.

18 ‘‘(3) DEPARTMENT OF HAWAIIAN HOME

19 LANDS.—The term ‘Department of Hawaiian Home

20 Lands’ means the department of the State of Hawaii

21 that is responsible for the administration of the Ha22 waiian Homes Commission Act, 1920.

23 ‘‘(4) FAMILY.—The term ‘family’ means one or

24 more persons maintaining a household, as the Sec25 retary shall by regulation provide.
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1 ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha2 waiian Home Lands’ means those lands set aside for

3 homesteading by Native Hawaiians under the Ha4 waiian Homes Commission Act, 1920, and any other

5 lands acquired pursuant to such Act.

6 ‘‘(6) INCOME.—The term ‘income’ means in7 come from all sources of each member of a house8 hold, as determined in accordance with criteria pre9 scribed by the Secretary.

10 ‘‘(7) LOW-INCOME HOUSING.—The term ‘low11 income housing’ means decent, safe, and sanitary

12 dwellings assisted under this title.

13 ‘‘(8) LOW-INCOME FAMILIES.—The term ‘low14 income families’ means families whose incomes do

15 not exceed 80 percent of the median income for the

16 area, as determined by the Secretary with adjust17 ments for smaller and larger families, except that

18 the Secretary may establish income ceilings higher

19 or lower than 80 percent of the median for the area

20 on the basis of the Secretary’s findings that such

21 variations are necessary because of prevailing levels

22 of construction costs or unusually high or low family

23 incomes.

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

25 Hawaiian’ means any individual who is a descendant
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1 of the aboriginal people who, prior to 1778, occupied

2 and exercised sovereignty in the area that now con3 stitutes the State of Hawaii, as evidenced by—

4 ‘‘(A) genealogical records;

5 ‘‘(B) Kupuna (elders) or Kama’aina (long6 term community residents) verification; or

7 ‘‘(C) certified birth records.

8 ‘‘(10) NATIVE HAWAIIAN HOUSING AUTHOR9 ITY.—The term ‘Native Hawaiian Housing Author10 ity’ means any public body (or agency or instrumen11 tality thereof) established under the laws of the

12 State of Hawaii, that is authorized to engage in or

13 assist in the development or operation of low-income

14 housing for Native Hawaiians.

15 ‘‘(11) NATIVE HAWAIIAN LANDS.—The term

16 ‘Native Hawaiian lands’ means the area within

17 which a Native Hawaiian Housing Authority is au18 thorized to provide low-income housing. The term

19 may include—

20 ‘‘(A) Hawaiian Home Lands;

21 ‘‘(B) ceded public lands; and

22 ‘‘(C) other lands traditionally occupied by

23 Native Hawaiians.
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1 ‘‘(12) SECRETARY.—The term ‘Secretary’

2 means the Secretary of Housing and Urban Develop3 ment.

4 ‘‘(13) PUBLIC HOUSING TERMS.—As used in

5 reference to public housing, the following definitions

6 shall apply:

7 ‘‘(A) DEVELOPMENT.—The term ‘develop8 ment’ means any or all undertakings necessary

9 for planning, land acquisition, demolition, con10 struction, or equipment, in connection with a

11 low-income housing project;

12 ‘‘(B) DEVELOPMENT COST.—The term ‘de13 velopment cost’ comprises the costs incurred by

14 a public housing agency in development under15 takings and their necessary financing (including

16 the payment of carrying charges), and in other17 wise carrying out the development of a housing

18 project. Construction activity in connection with

19 a low-income housing project may be confined

20 to the reconstruction, remodeling, or repair of

21 existing buildings.

22 ‘‘(C) OPERATION.—

23 ‘‘(i) IN GENERAL.—The term ‘oper24 ation’ means any or all undertakings ap25 propriate for management, operation, serv-
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1 ices, maintenance, security (including the

2 cost of security personnel), or financing in

3 connection with a low-income housing

4 project. The term also means the financing

5 of tenant programs and services for fami6 lies residing in low-income housing

7 projects, particularly where there is maxi8 mum feasible participation of the tenants

9 in the development and operation of such

10 tenant programs and services. To the max11 imum extent available and appropriate, ex12 isting public and private agencies in the

13 community shall be used for the provision

14 of such tenant services.

15 ‘‘(ii) TENANT PROGRAMS AND SERV16 ICES.—For purposes of this subparagraph,

17 the term ‘tenant programs and services’ in18 cludes—

19 ‘‘(I) the development and mainte20 nance of tenant organizations that

21 participate in the management of low22 income housing projects;

23 ‘‘(II) the training of tenants to

24 manage and operate such projects and
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1 the utilization of their services in

2 project management and operation;

3 ‘‘(III) counseling on household

4 management, housekeeping, budget5 ing, money management, child care,

6 and similar matters;

7 ‘‘(IV) advice as to resources for

8 job training and placement, education,

9 welfare, health, and other community

10 services;

11 ‘‘(V) services that are directly re12 lated to meeting tenant needs and

13 providing a wholesome living environ14 ment; and

15 ‘‘(VI) referral to appropriate

16 agencies in the community when nec17 essary for the provision of such serv18 ices.

19 ‘‘SEC. 403. GRANTS FOR THE DEVELOPMENT OR ACQUISI20 TION OF LOWER INCOME HOUSING

21 PROJECTS.

22 ‘‘(a) IN GENERAL.—The Secretary shall make grants

23 to help finance or refinance the development or acquisition

24 of low-income housing projects by Native Hawaiian Hous25 ing Authorities.
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1 ‘‘(b) PROGRAM LEVELS.—The Secretary shall, to the

2 extent approved in appropriations Acts, reserve authority

3 to enter into obligations aggregating such sums as may

4 be necessary to carry out this title.

5 ‘‘(c) RECAPTURED AMOUNTS.—Any amount available

6 for Hawaiian housing under subsection (a) that is recap7 tured shall be used only for such housing.

8 ‘‘SEC. 404. ANNUAL CONTRIBUTIONS FOR THE OPERATION

9 OF LOWER INCOME HOUSING PROJECTS.

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

11 contributions to Native Hawaiian Housing Authorities for

12 the operation of low-income housing projects.

13 ‘‘(b) CONTRACT REQUIRED.—The Secretary shall

14 embody the provisions for each contribution made under

15 this section in a contract which shall guarantee the pay16 ment of such contribution, subject to the availability of

17 funds.

18 ‘‘(c) MAXIMUM CONTRIBUTION.—A contribution

19 made under this section shall not exceed the amount which

20 the Secretary determines is required—

21 ‘‘(1) to assure the lower income character of the

22 projects involved; and

23 ‘‘(2) to achieve and maintain adequate operat24 ing services and reserve funds.
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1 ‘‘(d) REGULATIONS.—For purposes of making pay2 ments under this section, the Secretary shall determine

3 operating deficits based on a projected budget on an an4 nual basis and shall promulgate necessary regulations for

5 such payments.

6 ‘‘SEC. 405. SECTION 8 LOWER INCOME HOUSING ASSIST7 ANCE.

8 ‘‘The Secretary shall make the provisions of section

9 8 of this Act applicable to Native Hawaiian lands if the

10 Secretary determines that such assistance is necessary and

11 would be beneficial to Native Hawaiians.

12 ‘‘SEC. 406. RENTAL ASSISTANCE PAYMENTS.

13 ‘‘(a) ELIGIBILITY.—Rental units assisted under this

14 title shall be rented only to families who are low-income

15 families at the time of their initial occupancy of such

16 units. Reviews of family income shall be made at least an17 nually.

18 ‘‘(b) RENTAL PAYMENTS.—

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), a family shall pay as rent for a dwelling

21 unit assisted under this title (other than a family as22 sisted under subsection (o) or (y) of section 8, or a

23 family paying rent under section 8(c)(3)(B)) an

24 amount (rounded to the nearest dollar) equal to the

25 greatest of the following:
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1 ‘‘(A) Twenty percent of the family’s

2 monthly adjusted income.

3 ‘‘(B) Ten percent of the family’s monthly

4 income.

5 ‘‘(C) If the family is receiving payments

6 for welfare assistance from a public agency, and

7 a part of such payments, adjusted in accord8 ance with the family’s actual housing costs, is

9 specifically designated by such agency to meet

10 the family’s housing costs, the portion of such

11 payments which is so designated.

12 ‘‘(2) PUBLIC HOUSING PROJECTS.—With re13 spect to families residing in housing projects owned

14 and operated by a Native Hawaiian Housing Au15 thority, the housing authority may charge monthly

16 rent in an amount determined by the housing au17 thority to be appropriate, which amount shall not ex18 ceed a maximum amount established by the housing

19 authority and approved by the Secretary.

20 ‘‘SEC. 407. MUTUAL HELP HOMEOWNERSHIP OPPORTUNITY

21 PROGRAM FOR NATIVE HAWAIIAN FAMILIES.

22 ‘‘(a) ESTABLISHMENT.—The Secretary shall carry

23 out a mutual help homeownership opportunity program

24 for Native Hawaiian families in accordance with this sec25 tion. The program shall be designed to meet the home-
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1 ownership needs of Native Hawaiian families, including

2 families whose incomes exceed the levels established for

3 low-income families.

4 ‘‘(b) ELIGIBLE FAMILIES.—

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), assistance under this section shall be lim7 ited to Native Hawaiian low-income families.

8 ‘‘(2) EXCEPTION.—The Native Hawaiian Hous9 ing Authority may provide assistance under this sec10 tion to families whose incomes exceed the levels es11 tablished for low-income families, if the Native Ha12 waiian Housing Authority demonstrates to the satis13 faction of the Secretary that there is a need for

14 housing for such families that cannot reasonably be

15 met without such assistance.

16 ‘‘(c) MUTUAL HELP AND OCCUPANCY AGREE17 MENT.—The Native Hawaiian Housing Authority shall re18 quire each family selected for housing under this section

19 to enter into a mutual help and occupancy agreement. The

20 agreement shall provide the following:

21 ‘‘(1) FAMILY CONTRIBUTION.—The family shall

22 agree to contribute toward the development cost of

23 a project in the form of land, labor, cash, materials,

24 or equipment.
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1 ‘‘(2) MONTHLY PAYMENT.—The family shall

2 agree to make a monthly payment to the Native Ha3 waiian Housing Authority in an amount equal to the

4 greater of the following:

5 ‘‘(A) PERCENTAGE OF ADJUSTED IN6 COME.—An amount computed by—

7 ‘‘(i) multiplying the monthly adjusted

8 income of the family by a percentage that

9 is not less than 15 percent and not more

10 than 30 percent, as determined by the Na11 tive Hawaiian Housing Authority to be ap12 propriate; and

13 ‘‘(ii) subtracting the estimated month14 ly payments of the family for the reason15 able use of utilities (excluding telephone

16 service).

17 ‘‘(B) ADMINISTRATION CHARGE.—The

18 amount budgeted by the Native Hawaiian

19 Housing Authority for monthly operating ex20 penses on the dwelling of the family, excluding

21 any operating cost for which operating assist22 ance is provided by the Secretary under section

23 9.

24 ‘‘(3) MAINTENANCE AND UTILITIES.—The fam25 ily shall be responsible for the maintenance and
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1 monthly utility expenses of the dwelling. The Native

2 Hawaiian Housing Authority shall have in effect

3 procedures determined by the Secretary to be suffi4 cient for ensuring the timely periodic maintenance of

5 the dwelling by the family.

6 ‘‘(4) HOMEOWNERSHIP OPPORTUNITIES.—The

7 Native Hawaiian Housing Authority shall afford the

8 family an opportunity to purchase the dwelling

9 under a lease-purchase mortgage, or loan agreement

10 with the Native Hawaiian Housing Authority or any

11 other qualified entity, if the Native Hawaiian Hous12 ing Authority determines (in accordance with objec13 tive standards and procedures established by the

14 Secretary after consultation with the Native Hawai15 ian Housing Authority) that the family is able to

16 meet the obligations of homeownership.

17 ‘‘SEC. 408. HAWAIIAN HOUSING MODERNIZATION.

18 ‘‘The Secretary may make available and contract to

19 make available financial assistance (in such amounts as

20 are authorized pursuant to section 413 and as may be ap21 proved in appropriations Acts) to Native Hawaiian Hous22 ing Authorities in accordance with section 14 of this Act.

23 ‘‘SEC. 409. PUBLIC HOUSING MAXIMUM CONTRIBUTION.

24 ‘‘In determining the maximum contribution that may

25 be made by the Secretary to a Native Hawaiian Housing
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1 Authority under this title for the development of a housing

2 project (including a mutual help homeownership oppor3 tunity project under section 407), the Secretary shall con4 sider all relevant factors, including—

5 ‘‘(1) the logistical problems associated with

6 projects of remote location, low density, or scattered

7 sites; and

8 ‘‘(2) the availability of skilled labor and accept9 able materials.

10 ‘‘SEC. 410. CONTRACT PROVISIONS AND REQUIREMENTS.

11 ‘‘(a) IN GENERAL.—The Secretary may include in

12 any contract for loans or for the development, acquisition,

13 or operation of public housing or any other agreement or

14 instrument made pursuant to this title, such covenants,

15 conditions, or provisions as the Secretary may determine

16 to be necessary in order to insure the lower income char17 acter of the project involved.

18 ‘‘(b) TOTAL DEVELOPMENT COST.—

19 ‘‘(1) IN GENERAL.—Any contract described in

20 subsection (a) shall provide that the total develop21 ment cost of the project on which the computation

22 of any annual contributions under this title may be

23 based may not exceed—
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1 ‘‘(A) the amount determined under para2 graph (2) (for the appropriate structure type),

3 unless the Secretary provides otherwise; or

4 ‘‘(B) 110 percent of the amount deter5 mined under paragraph (2), unless the Sec6 retary for good cause determines otherwise.

7 ‘‘(2) COMPUTATION.—For purposes of para8 graph (1), the Secretary shall determine the total

9 development cost of a housing project by multiplying

10 the construction cost guideline for the project (which

11 shall be determined by averaging the current con12 struction costs, as listed by not less than 2 nation13 ally recognized residential construction cost indices,

14 for publicly bid construction of a good and sound

15 quality) by—

16 ‘‘(A) in the case of elevator-type struc17 tures, 1.6; and

18 ‘‘(B) in the case of nonelevator-type struc19 tures, 1.75.

20 ‘‘SEC. 411. GENERAL PROVISIONS.

21 ‘‘(a) DUTIES OF THE SECRETARY.—Notwithstanding

22 any other provision of law, the Secretary, in the perform23 ance of, and with respect to, the functions, powers, and

24 duties vested in the Secretary by this title, shall—
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1 ‘‘(1) prepare annually and submit a budget pro2 gram as provided for wholly owned Government cor3 porations by chapter 91 of title 31, United States

4 Code; and

5 ‘‘(2) maintain an integral set of accounts which

6 shall be audited annually by the General Accounting

7 Office in accordance with the principles and proce8 dures applicable to commercial transactions as pro9 vided by chapter 91 of title 31, United States Code,

10 and no other audit shall be required.

11 ‘‘(b) RECEIPTS AND ASSETS.—All receipts and assets

12 of the Secretary under this title shall be available for the

13 purposes of this title until expended.

14 ‘‘(c) POWERS OF FEDERAL RESERVE BANKS.—The

15 Federal Reserve banks are authorized and directed to act

16 as depositories, custodians, and fiscal agents for the Sec17 retary in the general exercise of the Secretary’s powers

18 under this title. The Secretary may reimburse any such

19 bank for its services in any manner as may be agreed

20 upon.

21 ‘‘(d) RELATED FACILITIES AND SERVICES.—The

22 Secretary shall take such actions as may be necessary to

23 ensure the timely and efficient provision, through agree24 ments with the Native Hawaiian Housing Authority or

25 other entities, of any roads, water supply and sewage fa-
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1 cilities, and electrical and fuel distribution systems that

2 are required for completion and occupancy of public hous3 ing projects assisted under this title, including mutual

4 help homeownership opportunity projects assisted under

5 section 407.

6 ‘‘(e) CONTRACT AGENCY.—The Secretary shall grant

7 the Native Hawaiian Housing Authority the authority to

8 contract with any Federal, State, local, or nonprofit entity

9 for the purposes outlined in subsection (d).

10 ‘‘SEC. 412. REGULATIONS.

11 ‘‘(a) ISSUANCE.—The Secretary shall issue such reg12 ulations as may be necessary to carry out this title.

13 ‘‘(b) CONSULTATION WITH NATIVE HAWAIIAN

14 HOUSING AUTHORITIES.—In formulating proposed regu15 lations under this section, the Secretary shall consult with

16 Native Hawaiian Housing Authorities.

17 ‘‘(c) EFFECTIVE DATE.—The regulations issued

18 under this section shall become effective before the expira19 tion of the 180-day period beginning on the date of enact20 ment of the Native Hawaiian Housing Assistance Act of

21 1994.

22 ‘‘SEC. 413. AUTHORIZATION OF APPROPRIATIONS.

23 ‘‘There are authorized to be appropriated such sums

24 as may be necessary to carry out this title.’’.
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1 SEC. 102. LOAN GUARANTEES FOR NATIVE HAWAIIAN

2 HOUSING.

3 Subtitle E of title I of the Housing and Community

4 Development Act of 1992 (12 U.S.C. 1715z–13a) is

5 amended by adding at the end the following new section:

6 ‘‘SEC. 187. LOAN GUARANTEES FOR NATIVE HAWAIIAN

7 HOUSING.

8 ‘‘(a) AUTHORITY.—To provide access to sources of

9 private financing to Native Hawaiian families and a Na10 tive Hawaiian Housing Authority that otherwise could not

11 acquire housing financing because of the unique status of

12 the Hawaiian Home Lands, the Secretary may guarantee

13 not more than 100 percent of the unpaid principal and

14 interest due on any loan eligible under subsection (b)

15 made to a Native Hawaiian family or Native Hawaiian

16 Housing Authority.

17 ‘‘(b) ELIGIBLE LOANS.—Loans guaranteed pursuant

18 to this section shall meet the following requirements:

19 ‘‘(1) ELIGIBLE BORROWERS.—The loans shall

20 be made only to borrowers who are Native Hawaiian

21 families or a Native Hawaiian Housing Authority.

22 ‘‘(2) ELIGIBLE HOUSING.—The loans shall be

23 used to construct, acquire, or rehabilitate 1- to 4-

24 family dwellings that are standard housing and are

25 located on Hawaiian Home Lands or Native Hawai26 ian lands.
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1 ‘‘(3) SECURITY.—The loans may be secured by

2 any collateral authorized under existing Federal law

3 or applicable State law.

4 ‘‘(4) LENDERS.—The loans shall be made only

5 by a lender approved by and meeting qualifications

6 established by the Secretary, except that loans other7 wise insured or guaranteed by an agency of the Fed8 eral Government or made by an organization of Na9 tive Hawaiians from amounts borrowed from the

10 United States shall not be eligible for guarantee

11 under this section. The following lenders are deemed

12 to be approved under this paragraph:

13 ‘‘(A) Any mortgagee approved by the Sec14 retary of Housing and Urban Development for

15 participation in the single family mortgage in16 surance program under title II of the National

17 Housing Act.

18 ‘‘(B) Any lender whose housing loans

19 under chapter 37 of title 38, United States

20 Code, are automatically guaranteed pursuant to

21 section 1802(d) of such title.

22 ‘‘(C) Any lender approved by the Secretary

23 of Agriculture to make guaranteed loans for

24 single family housing under the Housing Act of

25 1949.
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1 ‘‘(D) Any other lender that is supervised,

2 approved, regulated, or insured by any agency

3 of the Federal Government.

4 ‘‘(5) TERMS.—The loan shall—

5 ‘‘(A) be made for a term not exceeding 30

6 years;

7 ‘‘(B) bear interest (exclusive of the guar8 antee fee under subsection (d) and service

9 charges, if any) at a rate agreed upon by the

10 borrower and the lender and determined by the

11 Secretary to be reasonable, which may not ex12 ceed the rate generally charged in the area (as

13 determined by the Secretary) for home mort14 gage loans not guaranteed or insured by any

15 agency or instrumentality of the Federal Gov16 ernment;

17 ‘‘(C) involve a principal obligation not ex18 ceeding—

19 ‘‘(i) an amount equal to the sum of—

20 ‘‘(I) 97 percent of $25,000 of the

21 appraised value of the property, as of

22 the date the loan is accepted for guar23 antee; and

24 ‘‘(II) 95 percent of such value in

25 excess of $25,000; and
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1 ‘‘(ii) the amount approved by the Sec2 retary under this section; and

3 ‘‘(D) involve a payment on account of the

4 property—

5 ‘‘(i) in cash or its equivalent; or

6 ‘‘(ii) through the value of any im7 provements to the property made through

8 the skilled or unskilled labor of the bor9 rower;

10 as the Secretary shall provide.

11 ‘‘(c) CERTIFICATE OF GUARANTEE.—

12 ‘‘(1) APPROVAL PROCESS.—The Secretary shall

13 not approve any loan for guarantee under this sec14 tion until the lender submits a completed application

15 for the loan to the Secretary for examination in ac16 cordance with this subsection. If the Secretary ap17 proves the loan for guarantee, the Secretary shall

18 issue a certificate of guarantee in accordance with

19 this subsection.

20 ‘‘(2) STANDARD FOR APPROVAL.—The Sec21 retary may approve a loan for guarantee and issue

22 a certificate of guarantee under this subsection only

23 if the Secretary determines there is a reasonable

24 prospect of repayment of the loan.
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1 ‘‘(3) EFFECT.—A certificate of guarantee is2 sued under this subsection shall be conclusive evi3 dence of the eligibility of the loan for guarantee and

4 the amount of such guarantee. Such evidence shall

5 be incontestable in the hands of the bearer and the

6 full faith and credit of the United States is pledged

7 to the payment of all amounts agreed to be paid by

8 the Secretary as security for such obligations.

9 ‘‘(4) FRAUD AND MISREPRESENTATION.—This

10 subsection may not be construed to preclude the

11 Secretary from establishing defenses against the

12 original lender based on fraud or material misrepre13 sentation or to bar the Secretary from establishing

14 by regulations in effect on the date of issuance or

15 disbursement, whichever is earlier, partial defenses

16 to the amount payable on the guarantee.

17 ‘‘(d) GUARANTEE FEE.—The Secretary shall fix and

18 collect a guarantee fee for the guarantee of loans under

19 this section, which shall not exceed the amount equal to

20 1 percent of the principal obligation of the loan. The fee

21 shall be paid by the lender at the time of issuance of the

22 guarantee and shall be adequate, in the determination of

23 the Secretary, to cover expenses and probable losses. The

24 Secretary shall deposit any fees collected under this sub-
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1 section in the Native Hawaiian Housing Loan Guarantee

2 Fund established under subsection (i).

3 ‘‘(e) LIABILITY UNDER GUARANTEE.—The liability

4 under a guarantee provided under this section shall de5 crease or increase on a pro rata basis according to any

6 decrease or increase in the amount of the unpaid obliga7 tion under the provisions of the loan agreement.

8 ‘‘(f) TRANSFER AND ASSUMPTION.—Notwithstand9 ing any other provision of law, any loan guaranteed under

10 this section, including the security given for the loan, may

11 be sold or assigned by the lender to any financial institu12 tion subject to examination and supervision by an agency

13 of the Federal Government or of any State or the District

14 of Columbia.

15 ‘‘(g) DISQUALIFICATION OF LENDERS AND CIVIL

16 MONEY PENALTIES.—

17 ‘‘(1) IN GENERAL.—If the Secretary determines

18 that any lender or holder of a guarantee certificate

19 under subsection (c) has failed to maintain adequate

20 accounting records to adequately service loans guar21 anteed under this section, to exercise proper credit

22 or underwriting judgment, or has engaged in prac23 tices otherwise detrimental to the interest of a bor24 rower or the United States, the Secretary may—
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1 ‘‘(A) refuse, either temporarily or perma2 nently, to guarantee any additional loans made

3 by such lender or holder;

4 ‘‘(B) bar such lender or holder from ac5 quiring additional loans guaranteed under this

6 section; and

7 ‘‘(C) require that such lender or holder as8 sume not less than 10 percent of any loss on

9 additional loans made or held by the lender or

10 holder that are guaranteed under this section.

11 ‘‘(2) CIVIL MONEY PENALTIES FOR INTEN12 TIONAL VIOLATIONS.—If the Secretary determines

13 that any lender or holder of a guarantee certificate

14 under this section has intentionally failed to main15 tain adequate accounting records, to adequately

16 service loans guaranteed under this section, or to ex17 ercise proper credit or underwriting judgment, the

18 Secretary may impose a civil money penalty on such

19 lender or holder in the manner and amount provided

20 under section 536 of the National Housing Act with

21 respect to mortgagees and lenders under such Act.

22 ‘‘(3) PAYMENT ON LOANS MADE IN GOOD

23 FAITH.—Notwithstanding paragraphs (1) and (2),

24 the Secretary may not refuse to pay pursuant to a

25 valid guarantee on loans of a lender or holder barred
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1 under this subsection if the loans were previously

2 made in good faith.

3 ‘‘(h) PAYMENT UNDER GUARANTEE.—

4 ‘‘(1) LENDER OPTIONS.—

5 ‘‘(A) IN GENERAL.—In the event of default

6 by the borrower on a loan guarantee under this

7 section, the holder of the guarantee certificate

8 shall provide written notice of the default to the

9 Secretary. Upon providing such notice, the

10 holder of the guarantee certificate shall be enti11 tled to payment under the guarantee (subject to

12 the provisions of this section) and may proceed

13 to obtain payment in one of the following man14 ners:

15 ‘‘(i) FORECLOSURE.—The holder of

16 the certificate may initiate foreclosure pro17 ceedings in a court of competent jurisdic18 tion (after providing written notice of such

19 action to the Secretary) and upon a final

20 order by the court authorizing foreclosure

21 and submission to the Secretary of a claim

22 for payment under the guarantee, the Sec23 retary shall pay to the holder of the certifi24 cate the pro rata portion of the amount

25 guaranteed (as determined in accordance
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1 with subsection (e)) plus reasonable fees

2 and expenses as approved by the Secretary.

3 The Secretary shall be subrogated to the

4 rights of the holder of the guarantee and

5 the holder shall assign the obligation and

6 security to the Secretary.

7 ‘‘(ii) NO FORECLOSURE.—Without

8 seeking a judicial foreclosure (or in any

9 case in which a foreclosure proceeding ini10 tiated under clause (i) continues for a pe11 riod in excess of 1 year), the holder of the

12 guarantee may submit to the Secretary a

13 claim for payment under the guarantee

14 and the Secretary shall only pay to such

15 holder for a loss on any single loan an

16 amount equal to 90 percent of the pro rata

17 portion of the amount guaranteed (as de18 termined in accordance with subsection

19 (e)). The Secretary shall be subrogated to

20 the rights of the holder of the guarantee

21 and the holder shall assign the obligation

22 and security to the Secretary.

23 ‘‘(B) REQUIREMENTS.—Before any pay24 ment under a guarantee is made under sub25 paragraph (A), the holder of the guarantee
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1 shall exhaust all reasonable possibilities of col2 lection. Upon payment, in whole or in part, to

3 the holder, the note or judgment evidencing the

4 debt shall be assigned to the United States and

5 the holder shall have no further claim against

6 the borrower or the United States. The Sec7 retary shall then take such action to collect as

8 the Secretary determines appropriate.

9 ‘‘(2) ASSIGNMENT BY SECRETARY.—Notwith10 standing paragraph (1), upon receiving notice of de11 fault on a loan guaranteed under this section from

12 the holder of the guarantee, the Secretary may ac13 cept assignment of the loan if the Secretary deter14 mines that the assignment is in the best interests of

15 the United States. Upon assignment the Secretary

16 shall pay to the holder of the guarantee the pro rata

17 portion of the amount guaranteed (as determined

18 under subsection (e)). The Secretary shall be sub19 rogated to the rights of the holder of the guarantee

20 and the holder shall assign the obligation and secu21 rity to the Secretary.

22 ‘‘(3) LIMITATIONS ON LIQUIDATION.—In the

23 event of a default by the borrower on a loan guaran24 teed under this section involving a security interest

25 in Hawaiian Home Lands or Native Hawaiian lands,
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1 the Secretary shall only pursue liquidation after of2 fering to transfer the account to the Native Hawai3 ian Housing Authority. If the Secretary subse4 quently proceeds to liquidate the account, the Sec5 retary shall not sell, transfer, or otherwise dispose of

6 or alienate the property except to the Native Hawai7 ian Housing Authority.

8 ‘‘(i) NATIVE HAWAIIAN HOUSING LOAN GUARANTEE

9 FUND.—

10 ‘‘(1) ESTABLISHMENT.—There is established in

11 the Treasury of the United States the Native Ha12 waiian Housing Loan Guarantee Fund for the pur13 pose of providing loan guarantees under this section.

14 ‘‘(2) CREDITS.—The Guarantee Fund shall be

15 credited with—

16 ‘‘(A) any amounts, claims, notes, mort17 gages, contracts, and property acquired by the

18 Secretary under this section, and any collections

19 and proceeds therefrom;

20 ‘‘(B) any amounts appropriated under

21 paragraph (7);

22 ‘‘(C) any guarantee fees collected under

23 subsection (d); and

24 ‘‘(D) any interest or earnings on amounts

25 invested under paragraph (4).
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1 ‘‘(3) USE.—Amounts in the Guarantee Fund

2 shall be available, to the extent provided in appro3 priation Acts, for—

4 ‘‘(A) fulfilling any obligations of the Sec5 retary with respect to loans guaranteed under

6 this section, including the costs (as such term

7 is defined in section 502 of the Congressional

8 Budget Act of 1974) of such loans;

9 ‘‘(B) paying taxes, insurance, prior liens,

10 expenses necessary to make fiscal adjustment in

11 connection with the application and transmittal

12 of collections, and other expenses and advances

13 to protect the Secretary for loans which are

14 guaranteed under this section or held by the

15 Secretary;

16 ‘‘(C) acquiring such security property at

17 foreclosure sales or otherwise;

18 ‘‘(D) paying administrative expenses in

19 connection with this section; and

20 ‘‘(E) reasonable and necessary costs of re21 habilitation and repair to properties that the

22 Secretary holds or owns pursuant to this sec23 tion.

24 ‘‘(4) INVESTMENT.—Any amounts in the Guar25 antee Fund determined by the Secretary to be in ex-
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1 cess of amounts currently required to carry out this

2 section may be invested in obligations of the United

3 States.

4 ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR5 ANTEE LOANS AND MORTGAGES.—

6 ‘‘(A) REQUIREMENT OF APPROPRIA7 TIONS.—The authority of the Secretary to enter

8 into commitments to guarantee loans under this

9 section shall be effective for any fiscal year only

10 to the extent or in such amounts as are or have

11 been provided in appropriation Acts for such

12 fiscal year.

13 ‘‘(B) LIMITATIONS ON COSTS OF GUARAN14 TEES.—The authority of the Secretary to enter

15 into commitments to guarantee loans under this

16 section shall be effective for any fiscal year only

17 to the extent that amounts in the Guarantee

18 Fund are or have been made available in appro19 priation Acts to cover the costs (as such term

20 is defined in section 502 of the Congressional

21 Budget Act of 1974) of such loan guarantees

22 for such fiscal year.

23 ‘‘(C) LIMITATION ON OUTSTANDING AG24 GREGATE PRINCIPAL AMOUNT.—Subject to the

25 limitations in subparagraphs (A) and (B), the
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1 Secretary may enter into commitments to guar2 antee loans under this section in each of fiscal

3 years 1993 and 1994 with an aggregate out4 standing principal amount not exceeding such

5 amount as may be provided in appropriation

6 Acts for each such year.

7 ‘‘(6) LIABILITIES.—All liabilities and obliga8 tions of the assets credited to the Guarantee Fund

9 under paragraph (2)(A) shall be liabilities and obli10 gations of the Guarantee Fund.

11 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

12 There are authorized to be appropriated to the

13 Guarantee Fund such sums as may be necessary to

14 carry out this section.

15 ‘‘(j) REQUIREMENTS FOR STANDARD HOUSING.—

16 The Secretary shall, by regulation, establish housing safe17 ty and quality standards for use under this section. Such

18 standards shall provide sufficient flexibility to permit the

19 use of various designs and materials in housing acquired

20 with loans guaranteed under this section. The standards

21 shall require each dwelling unit in any housing so acquired

22 to—

23 ‘‘(1) be decent, safe, sanitary, and modest in

24 size and design; and
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1 ‘‘(2) conform with minimum standards estab2 lished under any applicable county, State, or na3 tional building code.

4 ‘‘(k) DEFINITIONS.—For purposes of this section, the

5 following definitions shall apply:

6 ‘‘(1) FAMILY.—The term ‘family’ means one or

7 more persons maintaining a household, as the Sec8 retary shall by regulation provide.

9 ‘‘(2) GUARANTEE FUND.—The term ‘Guarantee

10 Fund’ means the Native Hawaiian Housing Loan

11 Guarantee Fund established under subsection (i).

12 ‘‘(3) HAWAIIAN HOME LANDS.—The term ‘Ha13 waiian Home Lands’ means those lands set aside for

14 homesteading by Native Hawaiians under the Ha15 waiian Homes Commission Act, 1920.

16 ‘‘(4) NATIVE HAWAIIAN.—The term ‘Native

17 Hawaiian’ means any individual who is a descendant

18 of the aboriginal people who, prior to 1778, occupied

19 and exercised sovereignty in the area that now con20 stitutes the State of Hawaii, as evidenced by—

21 ‘‘(A) genealogical records;

22 ‘‘(B) Kupuna (elders) or Kama’aina (long23 term community residents) verification; or

24 ‘‘(C) certified birth records.
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1 ‘‘(5) NATIVE HAWAIIAN HOUSING AUTHOR2 ITY.—The term ‘Native Hawaiian Housing Author3 ity’ means any public body (or agency or instrumen4 tality thereof) established under the laws of the

5 State of Hawaii, that is authorized to engage in or

6 assist in the development or operation of low-income

7 housing for Native Hawaiians.

8 ‘‘(6) NATIVE HAWAIIAN LANDS.—The term

9 ‘Native Hawaiian lands’ means the area within

10 which a Native Hawaiian Housing Authority is au11 thorized to provide low-income housing.

12 ‘‘(7) SECRETARY.—The term ‘Secretary’ means

13 the Secretary of Housing and Urban Development.

14 ‘‘(8) STANDARD HOUSING.—The term ‘standard

15 housing’ means a dwelling unit or housing that com16 plies with the requirements established under sub17 section (j).’’.

18 TITLE II—HOME INVESTMENT

19 PARTNERSHIPS

20 SEC. 201. NATIVE HAWAIIAN ELIGIBILITY FOR THE HOME

21 PROGRAM.

22 Section 217(a) of the Cranston-Gonzalez National

23 Affordable Housing Act (42 U.S.C. 12747(a)) is amend24 ed—
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1 (1) in paragraph (1), by inserting ‘‘, and after

2 reserving amounts under paragraph (4) for Native

3 Hawaiian Housing Authorities’’ after ‘‘insular

4 areas,’’; and

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

6 paragraph:

7 ‘‘(4) NATIVE HAWAIIAN ALLOCATION.—

8 ‘‘(A) IN GENERAL.—For each fiscal year,

9 of the amount approved in an appropriations

10 Act to carry out this title, the Secretary shall

11 reserve for grants to Native Hawaiian Housing

12 Authorities 0.2 percent of the amount appro13 priated under such section.

14 ‘‘(B) DEFINITION.—As used in this sec15 tion, the term ‘Native Hawaiian Housing Au16 thority’ has the same meaning as in section 402

17 of the United States Housing Act of 1937.’’.

18 TITLE III—COMMUNITY

19 DEVELOPMENT BLOCK GRANTS

20 SEC. 301. NATIVE HAWAIIAN ELIGIBILITY FOR CDBG.

21 Section 109(d) of the Housing and Community De22 velopment Act of 1974 (42 U.S.C. 5309(d)) is amended

23 by inserting ‘‘or to a Native Hawaiian Housing Authority’’

24 before the period.
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1 SEC. 302. NATIVE HAWAIIAN ALLOCATION.

2 Section 106(a) of the Housing and Community De3 velopment Act of 1974 (42 U.S.C. 5306(a)) is amended—

4 (1) in paragraph (1), in the first sentence, by

5 inserting ‘‘, and shall reserve for grants to a Native

6 Hawaiian Housing Authority 0.2 percent of the

7 amount appropriated under such section’’ before the

8 period; and

9 (2) in paragraph (2), by inserting ‘‘and a Na10 tive Hawaiian Housing Authority’’ after ‘‘Indian

11 tribes’’.

12 SEC. 303. DEFINITIONS.

13 Section 102(a) of the Housing and Community De14 velopment Act of 1974 (42 U.S.C. 5302(a)) is amended

15 by adding at the end the following new paragraph:

16 ‘‘(24) The terms ‘Hawaiian Home Lands’ and

17 ‘Native Hawaiian Housing Authority’ have the same

18 meanings as in section 402 of the United States

19 Housing Act of 1937.’’.

20 TITLE IV—HOUSING STANDARDS

21 SEC. 401. HOUSING SUBDIVISION DEVELOPMENT.

22 The Secretary may, in the discretion of the Secretary,

23 exempt housing developed by a Native Hawaiian Housing

24 Authority from building codes and standards related to

25 the development and construction of subdivisions.
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1 SEC. 402. DEMONSTRATION PROJECT TO DEVELOP LOCAL2 IZED HOUSING STANDARDS FOR NATIVE HA3 WAIIAN COMMUNITIES.

4 The Secretary shall award a grant to a Native Hawai5 ian Housing Authority for the purpose of establishing a

6 demonstration project to develop localized housing stand7 ards for Native Hawaiian communities, including the con8 sideration of modifications to the National Building Code

9 and other applicable codes and standards. The purpose of

10 the demonstration project shall be to develop housing

11 standards reflective of Native Hawaiian community needs

12 while simultaneously ensuring the availability of and ac13 cess to private, State, and federally assisted housing, fi14 nance, mortgage, and insurance programs.

15 TITLE V—GENERAL PROVISIONS

16 SEC. 501. DEFINITIONS.

17 For purposes of this Act, the following definitions

18 shall apply:

19 (1) NATIVE HAWAIIAN HOUSING AUTHORITY.—

20 The term ‘‘Native Hawaiian Housing Authority’’

21 means any public body (or agency or instrumentality

22 thereof) established under the laws of the State of

23 Hawaii, that is authorized to engage in or assist in

24 the development or operation of low-income housing

25 for Native Hawaiians.
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1 (2) NATIVE HAWAIIAN.—The term ‘‘Native Ha2 waiian’’ means any individual who is a descendant of

3 the aboriginal people who, prior to 1778, occupied

4 and exercised sovereignty in the area that now con5 stitutes the State of Hawaii, as evidenced by—

6 (A) genealogical records;

7 (B) Kupuna (elders) or Kama’aina (long8 term community residents) verification; or

9 (C) certified birth records.

10 (3) HAWAIIAN HOME LANDS.—The term ‘‘Ha11 waiian Home Lands’’ means those lands set aside

12 for homesteading by Native Hawaiians under the

13 Hawaiian Homes Commission Act, 1920.

14 SEC. 502. LEGAL OBLIGATIONS OF THE UNITED STATES.

15 Nothing in this Act shall be construed to diminish

16 or expand the legal obligations of the United States to17 ward the beneficiaries of the Hawaiian Homes Commis18 sion Act, 1920, or the Act entitled ‘‘An Act to provide

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

20 approved March 18, 1959 (73 Stat. 4).

21 SEC. 503. SEVERABILITY.

22 If any provision of this Act, or the application or any

23 provision of this Act to any person or circumstance, is held

24 invalid, the application of each provision or circumstance
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1 and the remainder of this Act shall not be affected there2 by.

3 SEC. 504. REGULATIONS.

4 (a) ISSUANCE.—Except as otherwise provided in this

5 title, the Secretary shall issue such regulations as may be

6 necessary to carry out this title.

7 (b) CONSULTATION.—In formulating proposed regu8 lations under this section, the Secretary shall consult with

9 the Department of Hawaiian Homelands and a Native Ha10 waiian Housing Authority.

11 (c) EFFECTIVE DATE.—The regulations issued under

12 this section shall become effective not later than 18

13 months after the date of enactment of this Act.

14 SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

15 There are authorized to be appropriated such sums

16 as may be necessary to carry out this Act.

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