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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 109 Referred in House (RFH)]

  2d Session
                                 S. 109

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 19, 1998

      Referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 AN ACT

 
       To provide Federal housing assistance to Native Hawaiians.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Native American Housing Assistance 
and Self-Determination Amendments of 1998''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the United States has undertaken a responsibility to 
        promote the general welfare of the United States by--
                    (A) employing its resources to remedy the unsafe 
                and unsanitary housing conditions and the acute 
                shortage of decent, safe, and sanitary dwellings for 
                families of lower income; and
                    (B) developing effective partnerships with 
                governmental and private entities to accomplish the 
                objectives referred to in subparagraph (A);
            (2) pursuant to the provisions of the Hawaiian Homes 
        Commission Act, 1920 (42 Stat. 108 et seq.), the United States 
        set aside 200,000 acres of land in the Federal territory that 
        later became the State of Hawaii in order to establish a 
        homeland for the native people of Hawaii--Native Hawaiians;
            (3) despite the intent of Congress in 1920 to address the 
        housing needs of Native Hawaiians through the enactment of the 
        Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.), 
        some agencies of the Federal Government have taken the legal 
        position that subsequently enacted Federal housing laws 
        designed to address the housing needs of all eligible families 
        in the United States could not be extended to address the needs 
        for housing and infrastructure development on Hawaiian home 
        lands (as that term is defined in section 801 of the Native 
        American Housing Assistance and Self-Determination Act of 1996, 
        as added by section 3 of this Act) with the result that 
        otherwise eligible Native Hawaiians residing on the Hawaiian 
        home lands have been foreclosed from participating in Federal 
        housing assistance programs available to all other eligible 
        families in the United States;
            (4) although Federal housing assistance programs have been 
        administered on a racially neutral basis in the State of 
        Hawaii, Native Hawaiians continue to have the greatest unmet 
        need for housing and the highest rates of overcrowding in the 
        United States;
            (5) among the Native American population of the United 
        States, Native Hawaiians experience the highest percentage of 
        housing problems in the United States, as the percentage--
                    (A) of housing problems in the Native Hawaiian 
                population is 49 percent, as compared to--
                            (i) 44 percent for American Indian and 
                        Alaska Native households in Indian country; and
                            (ii) 27 percent for all other households in 
                        the United States; and
                    (B) overcrowding in the Native Hawaiian population 
                is 36 percent as compared to 3 percent for all other 
                households in the United States;
            (6) among the Native Hawaiian population, the needs of 
        Native Hawaiians, as that term is defined in section 801 of the 
        Native American Housing Assistance and Self-Determination Act 
        of 1996, as added by section 3 of this Act, eligible to reside 
        on the Hawaiian Home Lands are the most severe, as--
                    (A) the percentage of overcrowding in Native 
                Hawaiian households on the Hawaiian Home Lands is 36 
                percent; and
                    (B) approximately 13,000 Native Hawaiians, which 
                constitute 95 percent of the Native Hawaiians who are 
                eligible to reside on the Hawaiian Home Lands, are in 
                need of housing;
            (7) applying the Department of Housing and Urban 
        Development guidelines--
                    (A) 70.8 percent of Native Hawaiians who either 
                reside or who are eligible to reside on the Hawaiian 
                Home Lands have incomes that fall below the median 
                family income; and
                    (B) 50 percent of Native Hawaiians who either 
                reside or who are eligible to reside on the Hawaiian 
                Home Lands have incomes below 30 percent of the median 
                family income; and
            (8) \1/3\ of those Native Hawaiians who are eligible to 
        reside on the Hawaiian Home Lands pay more than 30 percent of 
        their income for shelter, and \1/2\ of those Native Hawaiians 
        face overcrowding;
            (9) the extraordinarily severe housing needs of Native 
        Hawaiians demonstrate that Native Hawaiians who either reside 
        on, or are eligible to reside on, Hawaiian Home Lands have been 
        denied equal access to Federal low-income housing assistance 
        programs available to other qualified residents of the United 
        States, and that a more effective means of addressing their 
        housing needs must be authorized;
            (10) consistent with the recommendations of the National 
        Commission on American Indian, Alaska Native, and Native 
        Hawaiian Housing, and in order to address the continuing 
        prevalence of extraordinarily severe housing needs among Native 
        Hawaiians who either reside or are eligible to reside on the 
        Hawaiian Home Lands, Congress finds it necessary to extend the 
        Federal low-income housing assistance available to American 
        Indians and Alaska Natives under the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 
        et seq.) to those Native Hawaiians;
            (11) under the treaty-making power of the United States, 
        Congress had the authority to confirm a treaty between the 
        United States and the government that represented the Hawaiian 
        people, and under clause 3 of section 8 of article I of the 
        Constitution, the authority of Congress to address matters 
        affecting the indigenous peoples of the United States includes 
        the authority to address matters affecting Native Hawaiians;
            (12) through treaties, Federal statutes, and rulings of the 
        Federal courts, the United States has recognized and reaffirmed 
        that--
                    (A) the political status of Native Hawaiians is 
                comparable to that of American Indians and Alaska 
                Natives; and
                    (B) the aboriginal, indigenous people of the United 
                States have--
                            (i) a continuing right to autonomy in their 
                        internal affairs; and
                            (ii) an ongoing right of self-determination 
                        and self-governance that has never been 
                        extinguished;
            (13) the political relationship between the United States 
        and the Native Hawaiian people has been recognized and 
        reaffirmed by the United States as evidenced by the inclusion 
        of Native Hawaiians in--
                    (A) the Native American Programs Act of 1974 (42 
                U.S.C. 2291 et seq.);
                    (B) the American Indian Religious Freedom Act (42 
                U.S.C. 1996 et seq.);
                    (C) the National Museum of the American Indian Act 
                (20 U.S.C. 80q et seq.);
                    (D) the Native American Graves Protection and 
                Repatriation Act (25 U.S.C. 3001 et seq.);
                    (E) the National Historic Preservation Act (16 
                U.S.C. 470 et seq.);
                    (F) the Native American Languages Act of 1992 (106 
                Stat. 3434);
                    (G) the American Indian, Alaska Native and Native 
                Hawaiian Culture and Arts Development Act (20 U.S.C. 
                4401 et seq.);
                    (H) the Job Training Partnership Act (29 U.S.C. 
                1501 et seq.); and
                    (I) the Older Americans Act of 1965 (42 U.S.C. 3001 
                et seq.); and
            (14) in the area of housing, the United States has 
        recognized and reaffirmed the political relationship with the 
        Native Hawaiian people through--
                    (A) the enactment of the Hawaiian Homes Commission 
                Act, 1920 (42 Stat. 108 et seq.), which set aside 
                approximately 200,000 acres of public lands that became 
                known as Hawaiian Home Lands in the Territory of Hawaii 
                that had been ceded to the United States for 
                homesteading by Native Hawaiians in order to 
                rehabilitate a landless and dying people;
                    (B) the enactment of the Act entitled ``An Act to 
                provide for the admission of the State of Hawaii into 
                the Union'', approved March 18, 1959 (73 Stat. 4)--
                            (i) by ceding to the State of Hawaii title 
                        to the public lands formerly held by the United 
                        States, and mandating that those lands be held 
                        in public trust, for the betterment of the 
                        conditions of Native Hawaiians, as that term is 
                        defined in section 801(15) of the Native 
                        American Housing Assistance and Self-
                        Determination Act of 1996, as added by section 
                        3 of this Act; and
                            (ii) by transferring what the United States 
                        considered to be a trust responsibility for the 
                        administration of Hawaiian Home Lands to the 
                        State of Hawaii, but retaining the authority to 
                        enforce the trust, including the exclusive 
                        right of the United States to consent to any 
                        actions affecting the lands which comprise the 
                        corpus of the trust and any amendments to the 
                        Hawaiian Homes Commission Act, 1920 (42 Stat. 
                        108 et seq.), enacted by the legislature of the 
                        State of Hawaii affecting the rights of 
                        beneficiaries under the Act;
                    (C) the authorization of mortgage loans insured by 
                the Federal Housing Administration for the purchase, 
                construction, or refinancing of homes on Hawaiian Home 
                Lands under the Act of June 27, 1934 (commonly referred 
                to as the ``National Housing Act'' (42 Stat. 1246 et 
                seq., chapter 847; 12 U.S.C. 1701 et seq.));
                    (D) authorizing Native Hawaiian representation on 
                the National Commission on American Indian, Alaska 
                Native, and Native Hawaiian Housing under Public Law 
                101-235;
                    (E) the inclusion of Native Hawaiians in the 
                definition under section 3764 of title 38, United 
                States Code, applicable to subchapter V of chapter 37 
                of title 38, United States Code (relating to a housing 
                loan program for Native American veterans); and
                    (F) the enactment of the Hawaiian Home Lands 
                Recovery Act (109 Stat. 357; 48 U.S.C. 491, note prec.) 
                which establishes a process for the conveyance of 
                Federal lands to the Department of Hawaiian Homes Lands 
                that are equivalent in value to lands acquired by the 
                United States from the Hawaiian Home Lands inventory.

SEC. 3. HOUSING ASSISTANCE.

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

         ``TITLE VIII--HOUSING ASSISTANCE FOR NATIVE HAWAIIANS

``SEC. 801. DEFINITIONS.

    ``In this title:
            ``(1) Department of hawaiian home lands; department.--The 
        term `Department of Hawaiian Home Lands' or `Department' means 
        the agency or department of the government of the State of 
        Hawaii that is responsible for the administration of the 
        Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.).
            ``(2) Director.--The term `Director' means the Director of 
        the Department of Hawaiian Home Lands.
            ``(3) Elderly families; near-elderly families.--
                    ``(A) In general.--The term `elderly family' or 
                `near-elderly family' means a family whose head (or his 
                or her spouse), or whose sole member, is--
                            ``(i) for an elderly family, an elderly 
                        person; or
                            ``(ii) for a near-elderly family, a near-
                        elderly person.
                    ``(B) Certain families included.--The term `elderly 
                family' or `near-elderly family' includes--
                            ``(i) 2 or more elderly persons or near-
                        elderly persons, as the case may be, living 
                        together; and
                            ``(ii) 1 or more persons described in 
                        clause (i) living with 1 or more persons 
                        determined under the housing plan to be 
                        essential to their care or well-being.
            ``(4) Hawaiian home lands.--The term `Hawaiian Home Lands' 
        means lands that--
                    ``(A) have the status as Hawaiian home lands under 
                section 204 of the Hawaiian Homes Commission Act (42 
                Stat. 110); or
                    ``(B) are acquired pursuant to that Act.
            ``(5) Housing area.--The term `housing area' means an area 
        of Hawaiian Home Lands with respect to which the Department of 
        Hawaiian Home Lands is authorized to provide assistance for 
        affordable housing under this Act.
            ``(6) Housing entity.--The term `housing entity' means the 
        Department of Hawaiian Home Lands.
            ``(7) Housing plan.--The term `housing plan' means a plan 
        developed by the Department of Hawaiian Home Lands.
            ``(8) Median income.--The term `median income' means, with 
        respect to an area that is a Hawaiian housing area, the greater 
        of--
                    ``(A) the median income for the Hawaiian housing 
                area, which shall be determined by the Secretary; or
                    ``(B) the median income for the State of Hawaii.
            ``(9) Native hawaiian.--The term `Native Hawaiian' has the 
        meaning given the term `Native Hawaiian' in section 201 of the 
        Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.).

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

    ``(a) Grant Authority.--For each fiscal year, the Secretary shall 
(to the extent amounts are made available to carry out this title) make 
a grant under this title to the Department of Hawaiian Home Lands to 
carry out affordable housing activities for Native Hawaiian families on 
or near Hawaiian Home Lands.
    ``(b) Plan Requirement.--
            ``(1) In general.--The Secretary may make a grant under 
        this title to the Department of Hawaiian Home Lands for a 
        fiscal year only if--
                    ``(A) the Director has submitted to the Secretary a 
                housing plan for that fiscal year; and
                    ``(B) the Secretary has determined under section 
                804 that the housing plan complies with the 
                requirements of section 803.
            ``(2) Waiver.--The Secretary may waive the applicability of 
        the requirements under paragraph (1), in part, if the Secretary 
        finds that the Department of Hawaiian Home Lands has not 
        complied or cannot comply with those requirements due to 
        circumstances beyond the control of the Department of Hawaiian 
        Home Lands.
    ``(c) Use of Affordable Housing Activities Under Plan.--Except as 
provided in subsection (e), amounts provided under a grant under this 
section may be used only for affordable housing activities under this 
title that are consistent with a housing plan approved under section 
804.
    ``(d) Administrative Expenses.--
            ``(1) In general.--The Secretary shall, by regulation, 
        authorize the Department of Hawaiian Home Lands to use a 
        percentage of any grant amounts received under this title for 
        any reasonable administrative and planning expenses of the 
        Department relating to carrying out this title and activities 
        assisted with those amounts.
            ``(2) Administrative and planning expenses.--The 
        administrative and planning expenses referred to in paragraph 
        (1) include--
                    ``(A) costs for salaries of individuals engaged in 
                administering and managing affordable housing 
                activities assisted with grant amounts provided under 
                this title; and
                    ``(B) expenses incurred in preparing a housing plan 
                under section 803.
    ``(e) Public-Private Partnerships.--The Director shall make all 
reasonable efforts, consistent with the purposes of this title, to 
maximize participation by the private sector, including nonprofit 
organizations and for-profit entities, in implementing a housing plan 
that has been approved by the Secretary under section 803.
    ``(f) Applicability of Other Provisions.--
            ``(1) In general.--The Secretary shall be guided by the 
        relevant program requirements of titles I, II, and IV in the 
        implementation of housing assistance programs for Native 
        Hawaiians under this title.
            ``(2) Exception.--The Secretary may make exceptions to, or 
        modifications of, program requirements for Native American 
        housing assistance set forth in titles I, II, and IV as 
        necessary and appropriate to meet the unique situation and 
        housing needs of Native Hawaiians.

``SEC. 803. HOUSING PLAN.

    ``(a) Plan Submission.--The Secretary shall--
            ``(1) require the Director to submit a housing plan under 
        this section for each fiscal year; and
            ``(2) provide for the review of each plan submitted under 
        paragraph (1).
    ``(b) 5-Year Plan.--Each housing plan under this section shall--
            ``(1) be in a form prescribed by the Secretary; and
            ``(2) contain, with respect to the 5-year period beginning 
        with the fiscal year for which the plan is submitted, the 
        following information:
                    ``(A) Mission statement.--A general statement of 
                the mission of the Department of Hawaiian Home Lands to 
                serve the needs of the low-income families to be served 
                by the Department.
                    ``(B) Goal and objectives.--A statement of the 
                goals and objectives of the Department of Hawaiian Home 
                Lands to enable the Department to serve the needs 
                identified in subparagraph (A) during the period.
                    ``(C) Activities plans.--An overview of the 
                activities planned during the period including an 
                analysis of the manner in which the activities will 
                enable the Department to meet its mission, goals, and 
                objectives.
    ``(c) 1-Year Plan.--A housing plan under this section shall--
            ``(1) be in a form prescribed by the Secretary; and
            ``(2) contain the following information relating to the 
        fiscal year for which the assistance under this title is to be 
        made available:
                    ``(A) Goals and objectives.--A statement of the 
                goals and objectives to be accomplished during the 
                period covered by the plan.
                    ``(B) Statement of needs.--A statement of the 
                housing needs of the low-income families served by the 
                Department and the means by which those needs will be 
                addressed during the period covered by the plan, 
                including--
                            ``(i) a description of the estimated 
                        housing needs and the need for assistance for 
                        the low-income families to be served by the 
                        Department, including a description of the 
                        manner in which the geographical distribution 
                        of assistance is consistent with--
                                    ``(I) the geographical needs of 
                                those families; and
                                    ``(II) needs for various categories 
                                of housing assistance; and
                            ``(ii) a description of the estimated 
                        housing needs for all families to be served by 
                        the Department.
                    ``(C) Financial resources.--An operating budget for 
                the Department of Hawaiian Home Lands, in a form 
                prescribed by the Secretary, that includes--
                            ``(i) an identification and a description 
                        of the financial resources reasonably available 
                        to the Department to carry out the purposes of 
                        this title, including an explanation of the 
                        manner in which amounts made available will be 
                        used to leverage additional resources; and
                            ``(ii) the uses to which the resources 
                        described in clause (i) will be committed, 
                        including--
                                    ``(I) eligible and required 
                                affordable housing activities; and
                                    ``(II) administrative expenses.
                    ``(D) Affordable housing resources.--A statement of 
                the affordable housing resources currently available at 
                the time of the submittal of the plan and to be made 
                available during the period covered by the plan, 
                including--
                            ``(i) a description of the significant 
                        characteristics of the housing market in the 
                        State of Hawaii, including the availability of 
                        housing from other public sources, private 
                        market housing; and
                            ``(ii) the manner in which the 
                        characteristics referred to in clause (i) 
                        influence the decision of the Department of 
                        Hawaiian Home Lands to use grant amounts to be 
                        provided under this title for--
                                    ``(I) rental assistance;
                                    ``(II) the production of new units;
                                    ``(III) the acquisition of existing 
                                units; or
                                    ``(IV) the rehabilitation of units;
                            ``(iii) a description of the structure, 
                        coordination, and means of cooperation between 
                        the Department of Hawaiian Home Lands and any 
                        other governmental entities in the development, 
                        submission, or implementation of housing plans, 
                        including a description of--
                                    ``(I) the involvement of private, 
                                public, and nonprofit organizations and 
                                institutions;
                                    ``(II) the use of loan guarantees 
                                under section 184A of the Housing and 
                                Community Development Act of 1992; and
                                    ``(III) other housing assistance 
                                provided by the United States, 
                                including loans, grants, and mortgage 
                                insurance;
                            ``(iv) a description of the manner in which 
                        the plan will address the needs identified 
                        pursuant to subparagraph (C);
                            ``(v) a description of--
                                    ``(I) any existing or anticipated 
                                homeownership programs and rental 
                                programs to be carried out during the 
                                period covered by the plan; and
                                    ``(II) the requirements and 
                                assistance available under the programs 
                                referred to in subclause (I);
                            ``(vi) a description of--
                                    ``(I) any existing or anticipated 
                                housing rehabilitation programs 
                                necessary to ensure the long-term 
                                viability of the housing to be carried 
                                out during the period covered by the 
                                plan; and
                                    ``(II) the requirements and 
                                assistance available under the programs 
                                referred to in subclause (I);
                            ``(vii) a description of--
                                    ``(I) all other existing or 
                                anticipated housing assistance provided 
                                by the Department of Hawaiian Home 
                                Lands during the period covered by the 
                                plan, including--
                                            ``(aa) transitional 
                                        housing;
                                            ``(bb) homeless housing;
                                            ``(cc) college housing; and
                                            ``(dd) supportive services 
                                        housing; and
                                    ``(II) the requirements and 
                                assistance available under such 
                                programs;
                            ``(viii)(I) a description of any housing to 
                        be demolished or disposed of;
                            ``(II) a timetable for that demolition or 
                        disposition; and
                            ``(III) any other information required by 
                        the Secretary with respect to that demolition 
                        or disposition;
                            ``(ix) a description of the manner in which 
                        the Department of Hawaiian Home Lands will 
                        coordinate with welfare agencies in the State 
                        of Hawaii to ensure that residents of the 
                        affordable housing will be provided with access 
                        to resources to assist in obtaining employment 
                        and achieving self-sufficiency;
                            ``(x) a description of the requirements 
                        established by the Department of Hawaiian Home 
                        Lands to--
                                    ``(I) promote the safety of 
                                residents of the affordable housing;
                                    ``(II) facilitate the undertaking 
                                of crime prevention measures;
                                    ``(III) allow resident input and 
                                involvement, including the 
                                establishment of resident 
                                organizations; and
                                    ``(IV) allow for the coordination 
                                of crime prevention activities between 
                                the Department and local law 
                                enforcement officials; and
                            ``(xi) a description of the entities that 
                        will carry out the activities under the plan, 
                        including the organizational capacity and key 
                        personnel of the entities.
                    ``(E) Certification of compliance.--Evidence of 
                compliance that shall include, as appropriate--
                            ``(i) a certification that the Department 
                        of Hawaiian Home Lands will comply with--
                                    ``(I) title VI of the Civil Rights 
                                Act of 1964 (42 U.S.C. 2000d et seq.) 
                                or with title VIII of the Civil Rights 
                                Act of 1968 (42 U.S.C. 3601 et seq.) in 
                                carrying out this title, to the extent 
                                that such title is applicable; and
                                    ``(II) other applicable Federal 
                                statutes;
                            ``(ii) a certification that the Department 
                        will require adequate insurance coverage for 
                        housing units that are owned and operated or 
                        assisted with grant amounts provided under this 
                        title, in compliance with such requirements as 
                        may be established by the Secretary;
                            ``(iii) a certification that policies are 
                        in effect and are available for review by the 
                        Secretary and the public governing the 
                        eligibility, admission, and occupancy of 
                        families for housing assisted with grant 
                        amounts provided under this title;
                            ``(iv) a certification that policies are in 
                        effect and are available for review by the 
                        Secretary and the public governing rents 
                        charged, including the methods by which such 
                        rents or homebuyer payments are determined, for 
                        housing assisted with grant amounts provided 
                        under this title; and
                            ``(v) a certification that policies are in 
                        effect and are available for review by the 
                        Secretary and the public governing the 
                        management and maintenance of housing assisted 
                        with grant amounts provided under this title.
    ``(d) Applicability of Civil Rights Statutes.--
            ``(1) In general.--To the extent that the requirements of 
        title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
        seq.) or of title VIII of the Civil Rights Act of 1968 (42 
        U.S.C. 3601 et seq.) apply to assistance provided under this 
        title, nothing in the requirements concerning discrimination on 
        the basis of race shall be construed to prevent the provision 
        of assistance under this title--
                    ``(A) to the Department of Hawaiian Home Lands on 
                the basis that the Department served Native Hawaiians; 
                or
                    ``(B) to an eligible family on the basis that the 
                family is a Native Hawaiian family.
            ``(2) Civil rights.--Program eligibility under this title 
        may be restricted to Native Hawaiians. Subject to the preceding 
        sentence, no person may be discriminated against on the basis 
        of race, color, national origin, religion, sex, familial 
        status, or disability.
    ``(e) Use of Nonprofit Organizations.--As a condition of receiving 
grant amounts under this title, the Department of Hawaiian Home Lands 
shall, to the extent practicable, provide for private nonprofit 
organizations experienced in the planning and development of affordable 
housing for Native Hawaiians to carry out affordable housing activities 
with those grant amounts.

``SEC. 804. REVIEW OF PLANS.

    ``(a) Review and Notice.--
            ``(1) Review.--
                    ``(A) In general.--The Secretary shall conduct a 
                review of a housing plan submitted to the Secretary 
                under section 803 to ensure that the plan complies with 
                the requirements of that section.
                    ``(B) Limitation.--The Secretary shall have the 
                discretion to review a plan referred to in subparagraph 
                (A) only to the extent that the Secretary considers 
                that the review is necessary.
            ``(2) Notice.--
                    ``(A) In general.--Not later than 60 days after 
                receiving a plan under section 803, the Secretary shall 
                notify the Director of the Department of Hawaiian Home 
                Lands whether the plan complies with the requirements 
                under that section.
                    ``(B) Effect of failure of secretary to take 
                action.--For purposes of this title, if the Secretary 
                does not notify the Director, as required under this 
                subsection and subsection (b), upon the expiration of 
                the 60-day period described in subparagraph (A)--
                            ``(i) the plan shall be considered to have 
                        been determined to comply with the requirements 
                        under section 803; and
                            ``(ii) the Director shall be considered to 
                        have been notified of compliance.
    ``(b) Notice of Reasons for Determination of Noncompliance.--If the 
Secretary determines that a plan submitted under section 803 does not 
comply with the requirements of that section, the Secretary shall 
specify in the notice under subsection (a)--
            ``(1) the reasons for noncompliance; and
            ``(2) any modifications necessary for the plan to meet the 
        requirements of section 803.
    ``(c) Review.--
            ``(1) In general.--After the Director of the Department of 
        Hawaiian Home Lands submits a housing plan under section 803, 
        or any amendment or modification to the plan to the Secretary, 
        to the extent that the Secretary considers such action to be 
        necessary to make a determination under this subsection, the 
        Secretary shall review the plan (including any amendments or 
        modifications thereto) to determine whether the contents of the 
        plan--
                    ``(A) set forth the information required by section 
                803 to be contained in the housing plan;
                    ``(B) are consistent with information and data 
                available to the Secretary; and
                    ``(C) are not prohibited by or inconsistent with 
                any provision of this Act or any other applicable law.
            ``(2) Incomplete plans.--If the Secretary determines under 
        this subsection that any of the appropriate certifications 
        required under section 803(c)(2)(E) are not included in a plan, 
        the plan shall be considered to be incomplete.
    ``(d) Updates to Plan.--
            ``(1) In general.--Subject to paragraph (2), after a plan 
        under section 803 has been submitted for a fiscal year, the 
        Director of the Department of Hawaiian Home Lands may comply 
        with the provisions of that section for any succeeding fiscal 
        year (with respect to information included for the 5-year 
        period under section 803(b) or for the 1-year period under 
        section 803(c)) by submitting only such information regarding 
        such changes as may be necessary to update the plan previously 
        submitted.
            ``(2) Complete plans.--The Director shall submit a complete 
        plan under section 803 not later than 4 years after submitting 
        an initial plan under that section, and not less frequently 
        than every 4 years thereafter.
    ``(e) Effective Date.--This section and section 803 shall take 
effect on the date provided by the Secretary pursuant to section 807(a) 
to provide for timely submission and review of the housing plan as 
necessary for the provision of assistance under this title for fiscal 
year 2000.

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

    ``(a) Program Income.--
            ``(1) Authority to retain.--The Department of Hawaiian Home 
        Lands may retain any program income that is realized from any 
        grant amounts received by the Department under this title if--
                    ``(A) that income was realized after the initial 
                disbursement of the grant amounts received by the 
                Department; and
                    ``(B) the Director agrees to use the program income 
                for affordable housing activities in accordance with 
                the provisions of this title.
            ``(2) Prohibition of reduction of grant.--The Secretary may 
        not reduce the grant amount for the Department of Hawaiian Home 
        Lands based solely on--
                    ``(A) whether the Department retains program income 
                under paragraph (1); or
                    ``(B) the amount of any such program income 
                retained.
            ``(3) Exclusion of amounts.--The Secretary may, by 
        regulation, exclude from consideration as program income any 
        amounts determined to be so small that compliance with the 
        requirements of this subsection would create an unreasonable 
        administrative burden on the Department.
    ``(b) Labor Standards.--
            ``(1) In general.--Any contract or agreement for 
        assistance, sale, or lease pursuant to this title shall 
        contain--
                    ``(A) a provision requiring that an amount not less 
                than the wages prevailing in the locality, as 
                determined or adopted (subsequent to a determination 
                under applicable State or local law) by the Secretary, 
                shall be paid to all architects, technical engineers, 
                draftsmen, technicians employed in the development and 
                all maintenance, and laborers and mechanics employed in 
                the operation, of the affordable housing project 
                involved; and
                    ``(B) a provision that an amount not less than the 
                wages prevailing in the locality, as predetermined by 
                the Secretary of Labor pursuant to the Act commonly 
                known as the `Davis-Bacon Act' (46 Stat. 1494, chapter 
                411; 40 U.S.C. 276a et seq.) shall be paid to all 
                laborers and mechanics employed in the development of 
                the affordable housing involved.
            ``(2) Exceptions.--Paragraph (1) and provisions relating to 
        wages required under paragraph (1) in any contract or agreement 
        for assistance, sale, or lease under this title, shall not 
        apply to any individual who performs the services for which the 
        individual volunteered and who is not otherwise employed at any 
        time in the construction work and received no compensation or 
        is paid expenses, reasonable benefits, or a nominal fee for 
        those services.

``SEC. 806. ENVIRONMENTAL REVIEW.

    ``(a) In General.--
            ``(1) Release of funds.--
                    ``(A) In general.--The Secretary may carry out the 
                alternative environmental protection procedures 
                described in subparagraph (B) in order to ensure--
                            ``(i) that the policies of the National 
                        Environmental Policy Act of 1969 (42 U.S.C. 
                        4321 et seq.) and other provisions of law that 
                        further the purposes of such Act (as specified 
                        in regulations issued by the Secretary) are 
                        most effectively implemented in connection with 
                        the expenditure of grant amounts provided under 
                        this title; and
                            ``(ii) to the public undiminished 
                        protection of the environment.
                    ``(B) Alternative environmental protection 
                procedure.--In lieu of applying environmental 
                protection procedures otherwise applicable, the 
                Secretary may by regulation provide for the release of 
                funds for specific projects to the Department of 
                Hawaiian Home Lands if the Director of the Department 
                assumes all of the responsibilities for environmental 
                review, decisionmaking, and action under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.), and such other provisions of law as the 
                regulations of the Secretary specify, that would apply 
                to the Secretary were the Secretary to undertake those 
                projects as Federal projects.
            ``(2) Regulations.--
                    ``(A) In general.--The Secretary shall issue 
                regulations to carry out this section only after 
                consultation with the Council on Environmental Quality.
                    ``(B) Contents.--The regulations issued under this 
                paragraph shall--
                            ``(i) provide for the monitoring of the 
                        environmental reviews performed under this 
                        section;
                            ``(ii) in the discretion of the Secretary, 
                        facilitate training for the performance of such 
                        reviews; and
                            ``(iii) provide for the suspension or 
                        termination of the assumption of 
                        responsibilities under this section.
            ``(3) Effect on assumed responsibility.--The duty of the 
        Secretary under paragraph (2)(B) shall not be construed to 
        limit or reduce any responsibility assumed by the Department of 
        Hawaiian Home Lands for grant amounts with respect to any 
        specific release of funds.
    ``(b) Procedure.--
            ``(1) In general.--The Secretary shall authorize the 
        release of funds subject to the procedures under this section 
        only if, not less than 15 days before that approval and before 
        any commitment of funds to such projects, the Director of the 
        Department of Hawaiian Home Lands submits to the Secretary a 
        request for such release accompanied by a certification that 
        meets the requirements of subsection (c).
            ``(2) Effect of approval.--The approval of the Secretary of 
        a certification described in paragraph (1) shall be deemed to 
        satisfy the responsibilities of the Secretary under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) and such other provisions of law as the regulations of 
        the Secretary specify to the extent that those responsibilities 
        relate to the release of funds for projects that are covered by 
        that certification.
    ``(c) Certification.--A certification under the procedures under 
this section shall--
            ``(1) be in a form acceptable to the Secretary;
            ``(2) be executed by the Director of the Department of 
        Hawaiian Home Lands;
            ``(3) specify that the Department of Hawaiian Home Lands 
        has fully carried out its responsibilities as described under 
        subsection (a); and
            ``(4) specify that the Director--
                    ``(A) consents to assume the status of a 
                responsible Federal official under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.) and each provision of law specified in 
                regulations issued by the Secretary to the extent that 
                those laws apply by reason of subsection (a); and
                    ``(B) is authorized and consents on behalf of the 
                Department of Hawaiian Home Lands and the Director 
                accepts the jurisdiction of the Federal courts for the 
                purpose of enforcement of the responsibilities of the 
                Director of the Department of Hawaiian Home Lands as 
                such an official.

``SEC. 807. REGULATIONS.

    ``The Secretary shall issue final regulations necessary to carry 
out this title not later than June 1, 1999.

``SEC. 808. EFFECTIVE DATE.

    ``Except as otherwise expressly provided in this title, this title 
shall take effect on June 1, 1999.

``SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

    ``(a) National Objectives and Eligible Families.--
            ``(1) Primary objective.--The national objectives of this 
        title are--
                    ``(A) to assist and promote affordable housing 
                activities to develop, maintain, and operate affordable 
                housing in safe and healthy environments for occupancy 
                by low-income Native Hawaiian families;
                    ``(B) to ensure better access to private mortgage 
                markets and to promote self-sufficiency of low-income 
                Native Hawaiian families;
                    ``(C) to coordinate activities to provide housing 
                for low-income Native Hawaiian families with Federal, 
                State and local activities to further economic and 
                community development;
                    ``(D) to plan for and integrate infrastructure 
                resources on the Hawaiian Home Lands with housing 
                development; and
                    ``(E) to--
                            ``(i) promote the development of private 
                        capital markets; and
                            ``(ii) allow the markets referred to in 
                        clause (i) to operate and grow, thereby 
                        benefiting Native Hawaiian communities.
            ``(2) Eligible families.--
                    ``(A) In general.--Except as provided under 
                subparagraph (B), assistance for eligible housing 
                activities under this title shall be limited to low-
                income Native Hawaiian families.
                    ``(B) Exception to low-income requirement.--
                            ``(i) In general.--The Director may provide 
                        assistance for homeownership activities under--
                                    ``(I) section 810(b);
                                    ``(II) model activities under 
                                section 810(f); or
                                    ``(III) loan guarantee activities 
                                under section 184A of the Housing and 
                                Community Development Act of 1992 to 
                                Native Hawaiian families who are not 
                                low-income families, to the extent that 
                                the Secretary approves the activities 
                                under that section to address a need 
                                for housing for those families that 
                                cannot be reasonably met without that 
                                assistance.
                            ``(ii) Limitations.--The Secretary shall 
                        establish limitations on the amount of 
                        assistance that may be provided under this 
                        title for activities for families that are not 
                        low-income families.
                    ``(C) Other families.--Notwithstanding paragraph 
                (1), the Director may provide housing or housing 
                assistance provided through affordable housing 
                activities assisted with grant amounts under this title 
                to a family that is not composed of Native Hawaiians 
                if--
                            ``(i) the Department determines that the 
                        presence of the family in the housing involved 
                        is essential to the well-being of Native 
                        Hawaiian families; and
                            ``(ii) the need for housing for the family 
                        cannot be reasonably met without the 
                        assistance.
                    ``(D) Preference.--
                            ``(i) In general.--A housing plan submitted 
                        under section 803 may authorize a preference, 
                        for housing or housing assistance provided 
                        through affordable housing activities assisted 
                        with grant amounts provided under this title to 
                        be provided, to the extent practicable, to 
                        families that are eligible to reside on the 
                        Hawaiian Home Lands.
                            ``(ii) Application.--In any case in which a 
                        housing plan provides for preference described 
                        in clause (i), the Director shall ensure that 
                        housing activities that are assisted with grant 
                        amounts under this title are subject to that 
                        preference.
                    ``(E) Use of nonprofit organizations.--As a 
                condition of receiving grant amounts under this title, 
                the Department of Hawaiian Home Lands, shall to the 
                extent practicable, provide for private nonprofit 
                organizations experienced in the planning and 
                development of affordable housing for Native Hawaiians 
                to carry out affordable housing activities with those 
                grant amounts.

``SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

    ``(a) In General.--Affordable housing activities under this section 
are activities conducted in accordance with the requirements of section 
811 to--
            ``(1) develop or to support affordable housing for rental 
        or homeownership; or
            ``(2) provide housing services with respect to affordable 
        housing, through the activities described in subsection (b).
    ``(b) Activities.--The activities described in this subsection are 
the following:
            ``(1) Development.--The acquisition, new construction, 
        reconstruction, or moderate or substantial rehabilitation of 
        affordable housing, which may include--
                    ``(A) real property acquisition;
                    ``(B) site improvement;
                    ``(C) the development of utilities and utility 
                services;
                    ``(D) conversion;
                    ``(E) demolition;
                    ``(F) financing;
                    ``(G) administration and planning; and
                    ``(H) other related activities.
            ``(2) Housing services.--The provision of housing-related 
        services for affordable housing, including--
                    ``(A) housing counseling in connection with rental 
                or homeownership assistance;
                    ``(B) the establishment and support of resident 
                organizations and resident management corporations;
                    ``(C) energy auditing;
                    ``(D) activities related to the provision of self-
                sufficiency and other services; and
                    ``(E) other services related to assisting owners, 
                tenants, contractors, and other entities participating 
                or seeking to participate in other housing activities 
                assisted pursuant to this section.
            ``(3) Housing management services.--The provision of 
        management services for affordable housing, including--
                    ``(A) the preparation of work specifications;
                    ``(B) loan processing;
                    ``(C) inspections;
                    ``(D) tenant selection;
                    ``(E) management of tenant-based rental assistance; 
                and
                    ``(F) management of affordable housing projects.
            ``(4) Crime prevention and safety activities.--The 
        provision of safety, security, and law enforcement measures and 
        activities appropriate to protect residents of affordable 
        housing from crime.
            ``(5) Model activities.--Housing activities under model 
        programs that are--
                    ``(A) designed to carry out the purposes of this 
                title; and
                    ``(B) specifically approved by the Secretary as 
                appropriate for the purpose referred to in subparagraph 
                (A).

``SEC. 811. PROGRAM REQUIREMENTS.

    ``(a) Rents.--
            ``(1) Establishment.--Subject to paragraph (2), as a 
        condition to receiving grant amounts under this title, the 
        Director shall develop written policies governing rents and 
        homebuyer payments charged for dwelling units assisted under 
        this title, including methods by which such rents and homebuyer 
        payments are determined.
            ``(2) Maximum rent.--In the case of any low-income family 
        residing in a dwelling unit assisted with grant amounts under 
        this title, the monthly rent or homebuyer payment (as 
        applicable) for that dwelling unit may not exceed 30 percent of 
        the monthly adjusted income of that family.
    ``(b) Maintenance and Efficient Operation.--
            ``(1) In general.--The Director shall, using amounts of any 
        grants received under this title, reserve and use for operating 
        under section 810 such amounts as may be necessary to provide 
        for the continued maintenance and efficient operation of such 
        housing.
            ``(2) Disposal of certain housing.--This subsection may not 
        be construed to prevent the Director, or any entity funded by 
        the Department, from demolishing or disposing of housing, 
        pursuant to regulations established by the Secretary.
    ``(c) Insurance Coverage.--As a condition to receiving grant 
amounts under this title, the Director shall require adequate insurance 
coverage for housing units that are owned or operated or assisted with 
grant amounts provided under this title.
    ``(d) Eligibility for Admission.--As a condition to receiving grant 
amounts under this title, the Director shall develop written policies 
governing the eligibility, admission, and occupancy of families for 
housing assisted with grant amounts provided under this title.
    ``(e) Management and Maintenance.--As a condition to receiving 
grant amounts under this title, the Director shall develop policies 
governing the management and maintenance of housing assisted with grant 
amounts under this title.

``SEC. 812. TYPES OF INVESTMENTS.

    ``(a) In General.--Subject to section 811 and an applicable housing 
plan approved under section 803, the Director shall have--
            ``(1) the discretion to use grant amounts for affordable 
        housing activities through the use of--
                    ``(A) equity investments;
                    ``(B) interest-bearing loans or advances;
                    ``(C) noninterest-bearing loans or advances;
                    ``(D) interest subsidies;
                    ``(E) the leveraging of private investments; or
                    ``(F) any other form of assistance that the 
                Secretary determines to be consistent with the purposes 
                of this title; and
            ``(2) the right to establish the terms of assistance 
        provided with funds referred to in paragraph (1).
    ``(b) Investments.--The Director of the Department of Hawaiian Home 
Lands may invest grant amounts for the purposes of carrying out 
affordable housing activities in investment securities and other 
obligations, as approved by the Secretary.

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

    ``(a) In General.--Housing shall qualify for affordable housing for 
purposes of this title only if--
            ``(1) each dwelling unit in the housing--
                    ``(A) in the case of rental housing, is made 
                available for occupancy only by a family that is a low-
                income family at the time of the initial occupancy of 
                that family of that unit; and
                    ``(B) in the case of housing for homeownership, is 
                made available for purchase only by a family that is a 
                low-income family at the time of purchase; and
            ``(2) each dwelling unit in the housing will remain 
        affordable, according to binding commitments satisfactory to 
        the Secretary, for--
                    ``(A) the remaining useful life of the property (as 
                determined by the Secretary) without regard to the term 
                of the mortgage or to transfer of ownership; or
                    ``(B) such other period as the Secretary determines 
                is the longest feasible period of time consistent with 
                sound economics and the purposes of this title, except 
                upon a foreclosure by a lender (or upon other transfer 
                in lieu of foreclosure) if that action--
                            ``(i) recognizes any contractual or legal 
                        rights of any public agency, nonprofit sponsor, 
                        or other person or entity to take an action 
                        that would--
                                    ``(I) avoid termination of low-
                                income affordability, in the case of 
                                foreclosure; or
                                    ``(II) transfer ownership in lieu 
                                of foreclosure; and
                            ``(ii) is not for the purpose of avoiding 
                        low-income affordability restrictions, as 
                        determined by the Secretary.
    ``(b) Exception.--Notwithstanding subsection (a), housing assisted 
pursuant to section 809(a)(2)(B) shall be considered affordable housing 
for purposes of this title.

 ``SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.

    ``(a) Leases.--Except to the extent otherwise provided by or 
inconsistent with the laws of the State of Hawaii, in renting dwelling 
units in affordable housing assisted with grant amounts provided under 
this title, the Director, owner, or manager shall use leases that--
            ``(1) do not contain unreasonable terms and conditions;
            ``(2) require the Director, owner, or manager to maintain 
        the housing in compliance with applicable housing codes and 
        quality standards;
            ``(3) require the Director, owner, or manager to give 
        adequate written notice of termination of the lease, which 
        shall be the period of time required under applicable State or 
        local law;
            ``(4) specify that, with respect to any notice of eviction 
        or termination, notwithstanding any State or local law, a 
        resident shall be informed of the opportunity, before any 
        hearing or trial, to examine any relevant documents, record, or 
        regulations directly related to the eviction or termination;
            ``(5) require that the Director, owner, or manager may not 
        terminate the tenancy, during the term of the lease, except for 
        serious or repeated violation of the terms and conditions of 
        the lease, violation of applicable Federal, State, or local 
        law, or for other good cause; and
            ``(6) provide that the Director, owner, and manager may 
        terminate the tenancy of a resident for any activity, engaged 
        in by the resident, any member of the household of the 
        resident, or any guest or other person under the control of the 
        resident, that--
                    ``(A) threatens the health or safety of, or right 
                to peaceful enjoyment of the premises by, other 
                residents or employees of the Department, owner, or 
                manager;
                    ``(B) threatens the health or safety of, or right 
                to peaceful enjoyment of their premises by, persons 
                residing in the immediate vicinity of the premises; or
                    ``(C) is criminal activity (including drug-related 
                criminal activity) on or off the premises.
    ``(b) Tenant or Homebuyer Selection.--As a condition to receiving 
grant amounts under this title, the Director shall adopt and use 
written tenant and homebuyer selection policies and criteria that--
            ``(1) are consistent with the purpose of providing housing 
        for low-income families;
            ``(2) are reasonably related to program eligibility and the 
        ability of the applicant to perform the obligations of the 
        lease; and
            ``(3) provide for--
                    ``(A) the selection of tenants and homebuyers from 
                a written waiting list in accordance with the policies 
                and goals set forth in an applicable housing plan 
                approved under section 803; and
                    ``(B) the prompt notification in writing to any 
                rejected applicant of the grounds for that rejection.

``SEC. 815. REPAYMENT.

    ``If the Department of Hawaiian Home Lands uses grant amounts to 
provide affordable housing under activities under this title and, at 
any time during the useful life of the housing, the housing does not 
comply with the requirement under section 813(a)(2), the Secretary 
shall--
            ``(1) reduce future grant payments on behalf of the 
        Department by an amount equal to the grant amounts used for 
        that housing (under the authority of section 818(a)(1)(B)); or
            ``(2) require repayment to the Secretary of any amount 
        equal to those grant amounts.

``SEC. 816. ANNUAL ALLOCATION.

    ``For each fiscal year, the Secretary shall allocate any amounts 
made available for assistance under this title for the fiscal year, in 
accordance with the formula established pursuant to section 817 to the 
Department of Hawaiian Home Lands if the Department complies with the 
requirements under this title for a grant under this title.

``SEC. 817. ALLOCATION FORMULA.

    ``(a) Establishment.--The Secretary shall, by regulation issued not 
later than the expiration of the 6-month period beginning on the date 
of enactment of the Native American Housing Assistance and Self-
Determination Amendments of 1998, in the manner provided under section 
807, establish a formula to provide for the allocation of amounts 
available for a fiscal year for block grants under this title in 
accordance with the requirements of this section.
    ``(b) Factors for Determination of Need.--The formula under 
subsection (a) shall be based on factors that reflect the needs for 
assistance for affordable housing activities, including--
            ``(1) the number of low-income dwelling units owned or 
        operated at the time pursuant to a contract between the 
        Director and the Secretary;
            ``(2) the extent of poverty and economic distress and the 
        number of Native Hawaiian families eligible to reside on the 
        Hawaiian Home Lands; and
            ``(3) any other objectively measurable conditions that the 
        Secretary and the Director may specify.
    ``(c) Other Factors for Consideration.--In establishing the formula 
under subsection (a), the Secretary shall consider the relative 
administrative capacities of the Department of Hawaiian Home Lands and 
other challenges faced by the Department, including--
            ``(1) geographic distribution within Hawaiian Home Lands; 
        and
            ``(2) technical capacity.
    ``(d) Effective Date.--This section shall take effect on the date 
of enactment of the Native American Housing Assistance and Self-
Determination Amendments of 1998.

``SEC. 818. REMEDIES FOR NONCOMPLIANCE.

    ``(a) Actions by Secretary Affecting Grant Amounts.--
            ``(1) In general.--Except as provided in subsection (b), if 
        the Secretary finds after reasonable notice and opportunity for 
        a hearing that the Department of Hawaiian Home Lands has failed 
        to comply substantially with any provision of this title, the 
        Secretary shall--
                    ``(A) terminate payments under this title to the 
                Department;
                    ``(B) reduce payments under this title to the 
                Department by an amount equal to the amount of such 
                payments that were not expended in accordance with this 
                title; or
                    ``(C) limit the availability of payments under this 
                title to programs, projects, or activities not affected 
                by such failure to comply.
            ``(2) Actions.--If the Secretary takes an action under 
        subparagraph (A), (B), or (C) of paragraph (1), the Secretary 
        shall continue that action until the Secretary determines that 
        the failure by the Department to comply with the provision has 
        been remedied by the Department and the Department is in 
        compliance with that provision.
    ``(b) Noncompliance Because of a Technical Incapacity.--The 
Secretary may provide technical assistance for the Department, either 
directly or indirectly, that is designed to increase the capability and 
capacity of the Director of the Department to administer assistance 
provided under this title in compliance with the requirements under 
this title if the Secretary makes a finding under subsection (a), but 
determines that the failure of the Department to comply substantially 
with the provisions of this title--
            ``(1) is not a pattern or practice of activities 
        constituting willful noncompliance; and
            ``(2) is a result of the limited capability or capacity of 
        the Department of Hawaiian Home Lands.
    ``(c) Referral for Civil Action.--
            ``(1) Authority.--In lieu of, or in addition to, any action 
        that the Secretary may take under subsection (a), if the 
        Secretary has reason to believe that the Department of Hawaiian 
        Home Lands has failed to comply substantially with any 
        provision of this title, the Secretary may refer the matter to 
        the Attorney General of the United States with a recommendation 
        that an appropriate civil action be instituted.
            ``(2) Civil action.--Upon receiving a referral under 
        paragraph (1), the Attorney General may bring a civil action in 
        any United States district court of appropriate jurisdiction 
        for such relief as may be appropriate, including an action--
                    ``(A) to recover the amount of the assistance 
                furnished under this title that was not expended in 
                accordance with this title; or
                    ``(B) for mandatory or injunctive relief.
    ``(d) Review.--
            ``(1) In general.--If the Director receives notice under 
        subsection (a) of the termination, reduction, or limitation of 
        payments under this Act, the Director--
                    ``(A) may, not later than 60 days after receiving 
                such notice, file with the United States Court of 
                Appeals for the Ninth Circuit, or in the United States 
                Court of Appeals for the District of Columbia, a 
                petition for review of the action of the Secretary; and
                    ``(B) upon the filing of any petition under 
                subparagraph (A), shall forthwith transmit copies of 
                the petition to the Secretary and the Attorney General 
                of the United States, who shall represent the Secretary 
                in the litigation.
            ``(2) Procedure.--
                    ``(A) In general.--The Secretary shall file in the 
                court a record of the proceeding on which the Secretary 
                based the action, as provided in section 2112 of title 
                28, United States Code.
                    ``(B) Objections.--No objection to the action of 
                the Secretary shall be considered by the court unless 
                the Department has registered the objection before the 
                Secretary.
            ``(3) Disposition.--
                    ``(A) Court proceedings.--
                            ``(i) Jurisdiction of court.--The court 
                        shall have jurisdiction to affirm or modify the 
                        action of the Secretary or to set the action 
                        aside in whole or in part.
                            ``(ii) Findings of fact.--If supported by 
                        substantial evidence on the record considered 
                        as a whole, the findings of fact by the 
                        Secretary shall be conclusive.
                            ``(iii) Addition.--The court may order 
                        evidence, in addition to the evidence submitted 
                        for review under this subsection, to be taken 
                        by the Secretary, and to be made part of the 
                        record.
                    ``(B) Secretary.--
                            ``(i) In general.--The Secretary, by reason 
                        of the additional evidence referred to in 
                        subparagraph (A) and filed with the court--
                                    ``(I) may--
                                            ``(aa) modify the findings 
                                        of fact of the Secretary; or
                                            ``(bb) make new findings; 
                                        and
                                    ``(II) shall file--
                                            ``(aa) such modified or new 
                                        findings; and
                                            ``(bb) the recommendation 
                                        of the Secretary, if any, for 
                                        the modification or setting 
                                        aside of the original action of 
                                        the Secretary.
                            ``(ii) Findings.--The findings referred to 
                        in clause (i)(II)(bb) shall, with respect to a 
                        question of fact, be considered to be 
                        conclusive if those findings are--
                                    ``(I) supported by substantial 
                                evidence on the record; and
                                    ``(II) considered as a whole.
            ``(4) Finality.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), upon the filing of the record under 
                this subsection with the court--
                            ``(i) the jurisdiction of the court shall 
                        be exclusive; and
                            ``(ii) the judgment of the court shall be 
                        final.
                    ``(B) Review by supreme court.--A judgment under 
                subparagraph (A) shall be subject to review by the 
                Supreme Court of the United States upon writ of 
                certiorari or certification, as provided in section 
                1254 of title 28, United States Code.

``SEC. 819. MONITORING OF COMPLIANCE.

    ``(a) Enforceable Agreements.--
            ``(1) In general.--The Director, through binding 
        contractual agreements with owners or other authorized 
        entities, shall ensure long-term compliance with the provisions 
        of this title.
            ``(2) Measures.--The measures referred to in paragraph (1) 
        shall provide for--
                    ``(A) to the extent allowable by Federal and State 
                law, the enforcement of the provisions of this title by 
                the Department and the Secretary; and
                    ``(B) remedies for breach of the provisions 
                referred to in paragraph (1).
    ``(b) Periodic Monitoring.--
            ``(1) In general.--Not less frequently than annually, the 
        Director shall review the activities conducted and housing 
        assisted under this title to assess compliance with the 
        requirements of this title.
            ``(2) Review.--Each review under paragraph (1) shall 
        include onsite inspection of housing to determine compliance 
        with applicable requirements.
            ``(3) Results.--The results of each review under paragraph 
        (1) shall be--
                    ``(A) included in a performance report of the 
                Director submitted to the Secretary under section 820; 
                and
                    ``(B) made available to the public.
    ``(c) Performance Measures.--The Secretary shall establish such 
performance measures as may be necessary to assess compliance with the 
requirements of this title.

``SEC. 820. PERFORMANCE REPORTS.

    ``(a) Requirement.--For each fiscal year, the Director shall--
            ``(1) review the progress the Department has made during 
        that fiscal year in carrying out the housing plan submitted by 
        the Department under section 803; and
            ``(2) submit a report to the Secretary (in a form 
        acceptable to the Secretary) describing the conclusions of the 
        review.
    ``(b) Content.--Each report submitted under this section for a 
fiscal year shall--
            ``(1) describe the use of grant amounts provided to the 
        Department of Hawaiian Home Lands for that fiscal year;
            ``(2) assess the relationship of the use referred to in 
        paragraph (1) to the goals identified in the housing plan;
            ``(3) indicate the programmatic accomplishments of the 
        Department; and
            ``(4) describe the manner in which the Department would 
        change its housing plan submitted under section 803 as a result 
        of its experiences.
    ``(c) Submissions.--The Secretary shall--
            ``(1) establish a date for submission of each report under 
        this section;
            ``(2) review each such report; and
            ``(3) with respect to each such report, make 
        recommendations as the Secretary considers appropriate to carry 
        out the purposes of this title.
    ``(d) Public Availability.--
            ``(1) Comments by beneficiaries.--In preparing a report 
        under this section, the Director shall make the report publicly 
        available to the beneficiaries of the Hawaiian Homes Commission 
        Act, 1920 (42 Stat. 108 et seq.) and give a sufficient amount 
        of time to permit those beneficiaries to comment on that report 
        before it is submitted to the Secretary (in such manner and at 
        such time as the Director may determine).
            ``(2) Summary of comments.--The report shall include a 
        summary of any comments received by the Director from 
        beneficiaries under paragraph (1) regarding the program to 
        carry out the housing plan.

``SEC. 821. REVIEW AND AUDIT BY SECRETARY.

    ``(a) Annual Review.--
            ``(1) In general.--The Secretary shall, not less frequently 
        than on an annual basis, make such reviews and audits as may be 
        necessary or appropriate to determine whether--
                    ``(A) the Director has--
                            ``(i) carried out eligible activities under 
                        this title in a timely manner;
                            ``(ii) carried out and made certifications 
                        in accordance with the requirements and the 
                        primary objectives of this title and with other 
                        applicable laws; and
                            ``(iii) a continuing capacity to carry out 
                        the eligible activities in a timely manner;
                    ``(B) the Director has complied with the housing 
                plan submitted by the Director under section 803; and
                    ``(C) the performance reports of the Department 
                under section 821 are accurate.
            ``(2) Onsite visits.--Each review conducted under this 
        section shall, to the extent practicable, include onsite visits 
        by employees of the Department of Housing and Urban 
        Development.
    ``(b) Report by Secretary.--The Secretary shall give the Department 
of Hawaiian Home Lands not less than 30 days to review and comment on a 
report under this subsection. After taking into consideration the 
comments of the Department, the Secretary may revise the report and 
shall make the comments of the Department and the report with any 
revisions, readily available to the public not later than 30 days after 
receipt of the comments of the Department.
    ``(c) Effect of Reviews.--The Secretary may make appropriate 
adjustments in the amount of annual grants under this title in 
accordance with the findings of the Secretary pursuant to reviews and 
audits under this section. The Secretary may adjust, reduce, or 
withdraw grant amounts, or take other action as appropriate in 
accordance with the reviews and audits of the Secretary under this 
section, except that grant amounts already expended on affordable 
housing activities may not be recaptured or deducted from future 
assistance provided to the Department of Hawaiian Home Lands.

``SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

    ``To the extent that the financial transactions of the Department 
of Hawaiian Home Lands involving grant amounts under this title relate 
to amounts provided under this title, those transactions may be audited 
by the Comptroller General of the United States under such regulations 
as may be prescribed by the Comptroller General. The Comptroller 
General of the United States shall have access to all books, accounts, 
records, reports, files, and other papers, things, or property 
belonging to or in use by the Department of Hawaiian Home Lands 
pertaining to such financial transactions and necessary to facilitate 
the audit.

``SEC. 823. REPORTS TO CONGRESS.

    ``(a) In General.--Not later than 90 days after the conclusion of 
each fiscal year in which assistance under this title is made 
available, the Secretary shall submit to the Congress a report that 
contains--
            ``(1) a description of the progress made in accomplishing 
        the objectives of this title;
            ``(2) a summary of the use of funds available under this 
        title during the preceding fiscal year; and
            ``(3) a description of the aggregate outstanding loan 
        guarantees under section 184A of the Housing and Community 
        Development Act of 1992.
    ``(b) Related Reports.--The Secretary may require the Director to 
submit to the Secretary such reports and other information as may be 
necessary in order for the Secretary to prepare the report required 
under subsection (a).

``SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Department of 
Housing and Urban Development for grants under this title such sums as 
may be necessary for each of fiscal years 1999, 2000, 2001, 2002 and 
2003.''.

SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.

    Subtitle E of title I of the Housing and Community Development Act 
of 1992 is amended by inserting after section 184 (12 U.S.C. 1715z-13a) 
the following:

``SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.

    ``(a) Definitions.--In this section:
            ``(1) Department of hawaiian home lands.--The term 
        `Department of Hawaiian Home Lands' means the agency or 
        department of the government of the State of Hawaii that is 
        responsible for the administration of the Hawaiian Homes 
        Commission Act, 1920 (42 Stat. 108 set seq.).
            ``(2) Eligible entity.--The term `eligible entity' means a 
        Native Hawaiian family, the Department of Hawaiian Home Lands, 
        the Office of Hawaiian Affairs, or private nonprofit or for-
        profit organizations experienced in the planning and 
        development of affordable housing for Native Hawaiians.
            ``(3) Family.--The term `family' means 1 or more persons 
        maintaining a household, as the Secretary shall by regulation 
        provide.
            ``(4) Guarantee fund.--The term `Guarantee Fund' means the 
        Native Hawaiian Housing Loan Guarantee Fund established under 
        subsection (i) of this section.
            ``(5) Hawaiian home lands.--The term `Hawaiian Home Lands' 
        means lands that--
                    ``(A) have the status of Hawaiian Home Lands under 
                section 204 of the Hawaiian Homes Commission Act (42 
                Stat. 110); or
                    ``(B) are acquired pursuant to that Act.
            ``(6) Native hawaiian.--The term `Native Hawaiian' has the 
        meaning given the term `native Hawaiian' in section 201 of the 
        Hawaiian Homes Commission Act, 1920 (42 Stat. 108 et seq.).
            ``(7) Office of hawaiian affairs.--The term `Office of 
        Hawaiian Affairs' means the entity of that name established 
        under the constitution of the State of Hawaii.
    ``(b) Authority.--To provide access to sources of private financing 
to Native Hawaiian families who otherwise could not acquire housing 
financing because of the unique legal status of the Hawaiian Home Lands 
or as a result of a lack of access to private financial markets, the 
Secretary may guarantee an amount not to exceed 100 percent of the 
unpaid principal and interest that is due on an eligible loan under 
subsection (b).
    ``(c) Eligible Loans.--Under this section, a loan is an eligible 
loan if that loan meets the following requirements:
            ``(1) Eligible borrowers.--The loan is made only to a 
        borrower who--
                    ``(A) is a Native Hawaiian family;
                    ``(B) the Department of Hawaiian Home Lands;
                    ``(C) the Office of Hawaiian Affairs; or
                    ``(D) a private nonprofit organization experienced 
                in the planning and development of affordable housing 
                for Native Hawaiians.
            ``(2) Eligible housing.--
                    ``(A) In general.--The loan will be used to 
                construct, acquire, or rehabilitate not more than 4-
                family dwellings that are standard housing and are 
                located on Hawaiian Home Lands for which a housing plan 
                described in subparagraph (B) applies.
                    ``(B) Housing plan.--A housing plan described in 
                this subparagraph is a housing plan that--
                            ``(i) has been submitted and approved by 
                        the Secretary under section 803 of the Native 
                        American Housing Assistance and Self-
                        Determination Amendments of 1998; and
                            ``(ii) provides for the use of loan 
                        guarantees under this section to provide 
                        affordable homeownership housing on Hawaiian 
                        Home Lands.
            ``(3) Security.--The loan may be secured by any collateral 
        authorized under applicable Federal law or State law.
            ``(4) Lenders.--
                    ``(A) In general.--The loan shall be made only by a 
                lender approved by, and meeting qualifications 
                established by, the Secretary, including any lender 
                described in subparagraph (B), except that a loan 
                otherwise insured or guaranteed by an agency of the 
                Federal Government or made by the Department of 
                Hawaiian Home Lands from amounts borrowed from the 
                United States shall not be eligible for a guarantee 
                under this section.
                    ``(B) Approval.--The following lenders shall be 
                considered to be lenders that have been approved by the 
                Secretary:
                            ``(i) Any mortgagee approved by the 
                        Secretary for participation in the single 
                        family mortgage insurance program under title 
                        II of the National Housing Act (12 U.S.C.A. 
                        1707 et seq.).
                            ``(ii) Any lender that makes housing loans 
                        under chapter 37 of title 38, United States 
                        Code, that are automatically guaranteed under 
                        section 3702(d) of title 38, United States 
                        Code.
                            ``(iii) Any lender approved by the 
                        Secretary of Agriculture to make guaranteed 
                        loans for single family housing under the 
                        Housing Act of 1949 (42 U.S.C.A. 1441 et seq.).
                            ``(iv) Any other lender that is supervised, 
                        approved, regulated, or insured by any agency 
                        of the Federal Government.
            ``(5) Terms.--The loan shall--
                    ``(A) be made for a term not exceeding 30 years;
                    ``(B) bear interest (exclusive of the guarantee fee 
                under subsection (d) and service charges, if any) at a 
                rate agreed upon by the borrower and the lender and 
                determined by the Secretary to be reasonable, but not 
                to exceed the rate generally charged in the area (as 
                determined by the Secretary) for home mortgage loans 
                not guaranteed or insured by any agency or 
                instrumentality of the Federal Government;
                    ``(C) involve a principal obligation not 
                exceeding--
                            ``(i) 97.75 percent of the appraised value 
                        of the property as of the date the loan is 
                        accepted for guarantee (or 98.75 percent if the 
                        value of the property is $50,000 or less); or
                            ``(ii) the amount approved by the Secretary 
                        under this section; and
                    ``(D) involve a payment on account of the 
                property--
                            ``(i) in cash or its equivalent; or
                            ``(ii) through the value of any 
                        improvements to the property made through the 
                        skilled or unskilled labor of the borrower, as 
                        the Secretary shall provide.
    ``(d) Certificate of Guarantee.--
            ``(1) Approval process.--
                    ``(A) In general.--Before the Secretary approves 
                any loan for guarantee under this section, the lender 
                shall submit the application for the loan to the 
                Secretary for examination.
                    ``(B) Approval.--If the Secretary approves the 
                application submitted under subparagraph (A), the 
                Secretary shall issue a certificate under this 
                subsection as evidence of the loan guarantee approved.
            ``(2) Standard for approval.--The Secretary may approve a 
        loan for guarantee under this section and issue a certificate 
        under this subsection only if the Secretary determines that 
        there is a reasonable prospect of repayment of the loan.
            ``(3) Effect.--
                    ``(A) In general.--A certificate of guarantee 
                issued under this subsection by the Secretary shall be 
                conclusive evidence of the eligibility of the loan for 
                guarantee under this section and the amount of that 
                guarantee.
                    ``(B) Evidence.--The evidence referred to in 
                subparagraph (A) shall be incontestable in the hands of 
                the bearer.
                    ``(C) Full faith and credit.--The full faith and 
                credit of the United States is pledged to the payment 
                of all amounts agreed to be paid by the Secretary as 
                security for the obligations made by the Secretary 
                under this section.
            ``(4) Fraud and misrepresentation.--This subsection may not 
        be construed--
                    ``(A) to preclude the Secretary from establishing 
                defenses against the original lender based on fraud or 
                material misrepresentation; or
                    ``(B) to bar the Secretary from establishing by 
                regulations that are on the date of issuance or 
                disbursement, whichever is earlier, partial defenses to 
                the amount payable on the guarantee.
    ``(e) Guarantee Fee.--
            ``(1) In general.--The Secretary shall fix and collect a 
        guarantee fee for the guarantee of a loan under this section, 
        which may not exceed the amount equal to 1 percent of the 
        principal obligation of the loan.
            ``(2) Payment.--The fee under this subsection shall--
                    ``(A) be paid by the lender at time of issuance of 
                the guarantee; and
                    ``(B) be adequate, in the determination of the 
                Secretary, to cover expenses and probable losses.
            ``(3) Deposit.--The Secretary shall deposit any fees 
        collected under this subsection in the Native Hawaiian Housing 
        Loan Guarantee Fund established under subsection (j).
    ``(f) Liability Under Guarantee.--The liability under a guarantee 
provided under this section shall decrease or increase on a pro rata 
basis according to any decrease or increase in the amount of the unpaid 
obligation under the provisions of the loan agreement involved.
    ``(g) Transfer and Assumption.--Notwithstanding any other provision 
of law, any loan guaranteed under this section, including the security 
given for the loan, may be sold or assigned by the lender to any 
financial institution subject to examination and supervision by an 
agency of the Federal Government or of any State or the District of 
Columbia.
    ``(h) Disqualification of Lenders and Civil Money Penalties.--
            ``(1) In general.--
                    ``(A) Grounds for action.--If the Secretary 
                determines that any lender or holder of a guarantee 
                certificate under subsection (c)--
                            ``(i) has failed--
                                    ``(I) to maintain adequate 
                                accounting records;
                                    ``(II) to service adequately loans 
                                guaranteed under this section; or
                                    ``(III) to exercise proper credit 
                                or underwriting judgment; or
                            ``(ii) has engaged in practices otherwise 
                        detrimental to the interest of a borrower or 
                        the United States,
                the Secretary may take action under subparagraph (B).
                    ``(B) Actions.--Upon a determination by the 
                Secretary that a holder of a guarantee certificate 
                under subsection (c) has failed to carry out an 
                activity described in subparagraph (A)(i) or has 
                engaged in practices described in subparagraph (A)(ii), 
                the Secretary may--
                            ``(i) refuse, either temporarily or 
                        permanently, to guarantee any further loans 
                        made by such lender or holder;
                            ``(ii) bar such lender or holder from 
                        acquiring additional loans guaranteed under 
                        this section; and
                            ``(iii) require that such lender or holder 
                        assume not less than 10 percent of any loss on 
                        further loans made or held by the lender or 
                        holder that are guaranteed under this section.
            ``(2) Civil money penalties for intentional violations.--
                    ``(A) In general.--The Secretary may impose a civil 
                monetary penalty on a lender or holder of a guarantee 
                certificate under subsection (d) if the Secretary 
                determines that the holder or lender has intentionally 
                failed--
                            ``(i) to maintain adequate accounting 
                        records;
                            ``(ii) to adequately service loans 
                        guaranteed under this section; or
                            ``(iii) to exercise proper credit or 
                        underwriting judgment.
                    ``(B) Penalties.--A civil monetary penalty imposed 
                under this paragraph shall be imposed in the manner and 
                be in an amount provided under section 536 of the 
                National Housing Act (12 U.S.C.A. 1735f-1) with respect 
                to mortgagees and lenders under that Act.
            ``(3) Payment on loans made in good faith.--Notwithstanding 
        paragraphs (1) and (2), if a loan was made in good faith, the 
        Secretary may not refuse to pay a lender or holder of a valid 
        guarantee on that loan, without regard to whether the lender or 
        holder is barred under this subsection.
    ``(i) Payment Under Guarantee.--
            ``(1) Lender options.--
                    ``(A) In general.--
                            ``(i) Notification.--If a borrower on a 
                        loan guaranteed under this section defaults on 
                        the loan, the holder of the guarantee 
                        certificate shall provide written notice of the 
                        default to the Secretary.
                            ``(ii) Payment.--Upon providing the notice 
                        required under clause (i), the holder of the 
                        guarantee certificate shall be entitled to 
                        payment under the guarantee (subject to the 
                        provisions of this section) and may proceed to 
                        obtain payment in 1 of the following manners:
                                    ``(I) Foreclosure.--
                                            ``(aa) In general.--The 
                                        holder of the certificate may 
                                        initiate foreclosure 
                                        proceedings (after providing 
                                        written notice of that action 
                                        to the Secretary).
                                            ``(bb) Payment.--Upon a 
                                        final order by the court 
                                        authorizing foreclosure and 
                                        submission to the Secretary of 
                                        a claim for payment under the 
                                        guarantee, the Secretary shall 
                                        pay to the holder of the 
                                        certificate the pro rata 
                                        portion of the amount 
                                        guaranteed (as determined 
                                        pursuant to subsection (f)) 
                                        plus reasonable fees and 
                                        expenses as approved by the 
                                        Secretary.
                                            ``(cc) Subrogation.--The 
                                        rights of the Secretary shall 
                                        be subrogated to the rights of 
                                        the holder of the guarantee. 
                                        The holder shall assign the 
                                        obligation and security to the 
                                        Secretary.
                                    ``(II) No foreclosure.--
                                            ``(aa) In general.--Without 
                                        seeking foreclosure (or in any 
                                        case in which a foreclosure 
                                        proceeding initiated under 
                                        clause (i) continues for a 
                                        period in excess of 1 year), 
                                        the holder of the guarantee may 
                                        submit to the Secretary a 
                                        request to assign the 
                                        obligation and security 
                                        interest to the Secretary in 
                                        return for payment of the claim 
                                        under the guarantee. The 
                                        Secretary may accept assignment 
                                        of the loan if the Secretary 
                                        determines that the assignment 
                                        is in the best interest of the 
                                        United States.
                                            ``(bb) Payment.--Upon 
                                        assignment, the Secretary shall 
                                        pay to the holder of the 
                                        guarantee the pro rata portion 
                                        of the amount guaranteed (as 
                                        determined under subsection 
                                        (f)).
                                            ``(cc) Subrogation.--The 
                                        rights of the Secretary shall 
                                        be subrogated to the rights of 
                                        the holder of the guarantee. 
                                        The holder shall assign the 
                                        obligation and security to the 
                                        Secretary.
                    ``(B) Requirements.--Before any payment under a 
                guarantee is made under subparagraph (A), the holder of 
                the guarantee shall exhaust all reasonable 
                possibilities of collection. Upon payment, in whole or 
                in part, to the holder, the note or judgment evidencing 
                the debt shall be assigned to the United States and the 
                holder shall have no further claim against the borrower 
                or the United States. The Secretary shall then take 
                such action to collect as the Secretary determines to 
                be appropriate.
            ``(2) Limitations on liquidation.--
                    ``(A) In general.--If a borrower defaults on a loan 
                guaranteed under this section that involves a security 
                interest in restricted Hawaiian Home Land property, the 
                mortgagee or the Secretary shall only pursue 
                liquidation after offering to transfer the account to 
                another eligible Hawaiian family or to the Department 
                of Hawaiian Home Lands.
                    ``(B) Limitation.--If, after action is taken under 
                subparagraph (A), the mortgagee or the Secretary 
                subsequently proceeds to liquidate the account, the 
                mortgagee or the Secretary shall not sell, transfer, or 
                otherwise dispose of or alienate the property described 
                in subparagraph (A) except to another eligible Hawaiian 
                family or to the Department of Hawaiian Home Lands.
    ``(j) Hawaiian Housing Loan Guarantee Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States the Hawaiian Housing Loan Guarantee Fund 
        for the purpose of providing loan guarantees under this 
        section.
            ``(2) Credits.--The Guarantee Fund shall be credited with--
                    ``(A) any amount, claims, notes, mortgages, 
                contracts, and property acquired by the Secretary under 
                this section, and any collections and proceeds 
                therefrom;
                    ``(B) any amounts appropriated pursuant to 
                paragraph (7);
                    ``(C) any guarantee fees collected under subsection 
                (d); and
                    ``(D) any interest or earnings on amounts invested 
                under paragraph (4).
            ``(3) Use.--Amounts in the Guarantee Fund shall be 
        available, to the extent provided in appropriations Acts, for--
                    ``(A) fulfilling any obligations of the Secretary 
                with respect to loans guaranteed under this section, 
                including the costs (as that term is defined in section 
                502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 
                661a)) of such loans;
                    ``(B) paying taxes, insurance, prior liens, 
                expenses necessary to make fiscal adjustment in 
                connection with the application and transmittal of 
                collections, and other expenses and advances to protect 
                the Secretary for loans which are guaranteed under this 
                section or held by the Secretary;
                    ``(C) acquiring such security property at 
                foreclosure sales or otherwise;
                    ``(D) paying administrative expenses in connection 
                with this section; and
                    ``(E) reasonable and necessary costs of 
                rehabilitation and repair to properties that the 
                Secretary holds or owns pursuant to this section.
            ``(4) Investment.--Any amounts in the Guarantee Fund 
        determined by the Secretary to be in excess of amounts 
        currently required at the time of the determination to carry 
        out this section may be invested in obligations of the United 
        States.
            ``(5) Limitation on commitments to guarantee loans and 
        mortgages.--
                    ``(A) Requirement of appropriations.--The authority 
                of the Secretary to enter into commitments to guarantee 
                loans under this section shall be effective for any 
                fiscal year to the extent, or in such amounts as, are 
                or have been provided in appropriations Acts, without 
                regard to the fiscal year for which such amounts were 
                appropriated.
                    ``(B) Limitations on costs of guarantees.--The 
                authority of the Secretary to enter into commitments to 
                guarantee loans under this section shall be effective 
                for any fiscal year only to the extent that amounts in 
                the Guarantee Fund are or have been made available in 
                appropriations Acts to cover the costs (as that term is 
                defined in section 502 of the Federal Credit Reform Act 
                of 1990 (2 U.S.C. 661a)) of such loan guarantees for 
                such fiscal year. Any amounts appropriated pursuant to 
                this subparagraph shall remain available until 
                expended.
                    ``(C) Limitation on outstanding aggregate principal 
                amount.--Subject to the limitations in subparagraphs 
                (A) and (B), the Secretary may enter into commitments 
                to guarantee loans under this section for each of 
                fiscal years 1999, 2000, 2001, 2002, and 2003 with an 
                aggregate outstanding principal amount not exceeding 
                $100,000,000 for each such fiscal year.
            ``(6) Liabilities.--All liabilities and obligations of the 
        assets credited to the Guarantee Fund under paragraph (2)(A) 
        shall be liabilities and obligations of the Guarantee Fund.
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Guarantee Fund to carry 
        out this section such sums as may be necessary for each of 
        fiscal years 1999, 2000, 2001, 2002, and 2003.
    ``(k) Requirements for Standard Housing.--
            ``(1) In general.--The Secretary shall, by regulation, 
        establish housing safety and quality standards to be applied 
        for use under this section.
            ``(2) Standards.--The standards referred to in paragraph 
        (1) shall--
                    ``(A) provide sufficient flexibility to permit the 
                use of various designs and materials in housing 
                acquired with loans guaranteed under this section; and
                    ``(B) require each dwelling unit in any housing 
                acquired in the manner described in subparagraph (A) 
                to--
                            ``(i) be decent, safe, sanitary, and modest 
                        in size and design;
                            ``(ii) conform with applicable general 
                        construction standards for the region in which 
                        the housing is located;
                            ``(iii) contain a plumbing system that--
                                    ``(I) uses a properly installed 
                                system of piping;
                                    ``(II) includes a kitchen sink and 
                                a partitional bathroom with lavatory, 
                                toilet, and bath or shower; and
                                    ``(III) uses water supply, 
                                plumbing, and sewage disposal systems 
                                that conform to any minimum standards 
                                established by the applicable county or 
                                State;
                            ``(iv) contain an electrical system using 
                        wiring and equipment properly installed to 
                        safely supply electrical energy for adequate 
                        lighting and for operation of appliances that 
                        conforms to any appropriate county, State, or 
                        national code;
                            ``(v) be not less than the size provided 
                        under the applicable locally adopted standards 
                        for size of dwelling units, except that the 
                        Secretary, upon request of the Department of 
                        Hawaiian Home Lands may waive the size 
                        requirements under this paragraph; and
                            ``(vi) conform with the energy performance 
                        requirements for new construction established 
                        by the Secretary under section 526(a) of the 
                        National Housing Act (12 U.S.C.A. 1735f-4), 
                        unless the Secretary determines that the 
                        requirements are not applicable.
    ``(l) Applicability of Civil Rights Statutes.--To the extent that 
the requirements of title VI of the Civil Rights Act of 1964 (42 U.S.C. 
2000d et seq.) or of title VIII of the Civil Rights Act of 1968 (42 
U.S.C. 3601 et seq.) apply to a guarantee provided under this 
subsection, nothing in the requirements concerning discrimination on 
the basis of race shall be construed to prevent the provision of the 
guarantee to an eligible entity on the basis that the entity serves 
Native Hawaiian families or is a Native Hawaiian family.''.

            Passed the Senate October 16 (legislative day, October 2), 
      1998.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.
```