Calendar No. 713

105TH CONGRESS

2D SESSION S. 109

[Report No. 105–380]

A BILL

To provide Federal housing assistance to Native

Hawaiians.

OCTOBER 8 (legislative day, OCTOBER 2), 1998

Reported with an amendment
II

Calendar No. 713

105TH CONGRESS

2D SESSION S. 109

[Report No. 105–380]

To provide Federal housing assistance to Native Hawaiians.

IN THE SENATE OF THE UNITED STATES

OCTOBER 6, 1998

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

was read twice and referred to the Committee on Indian Affairs

OCTOBER 8 (legislative day, OCTOBER 2), 1998

Reported by Mr. CAMPBELL, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To provide Federal housing assistance to Native Hawaiians.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Native Hawaiian

5 Housing Assistance Act of 1997’’.
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1 SEC. 2. FINDINGS AND PURPOSES.

2 (a) FINDINGS.—Congress makes the following find3 ings:

4 (1) The Federal Government has a responsibil5 ity to promote the general welfare of the Nation by

6 employing its resources to remedy the unsafe and

7 unsanitary housing conditions and the acute short8 age of decent, safe, and sanitary dwellings for fami9 lies of lower income and by developing effective part10 nerships with governmental and private entities to

11 accomplish these objectives.

12 (2) Based upon the status of the Kingdom of

13 Hawaii as an internationally recognized and inde14 pendent sovereign and the unique historical and po15 litical relationship between the United States and

16 Native Hawaiians, the Native Hawaiian people have

17 a continuing right to local autonomy in traditional

18 and cultural affairs and an ongoing right of self-de19 termination and self-governance that has never been

20 extinguished.

21 (3) The authority of Congress under the Con22 stitution of the United States to legislate and ad23 dress matters affecting the rights of indigenous peo24 ples of the United States includes the authority to

25 legislate in matters affecting Native Hawaiians.
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1 (4) In 1921, in recognition of the severe decline

2 in the Native Hawaiian population, Congress en3 acted the Hawaiian Homes Commission Act, 1920,

4 which set aside approximately 200,000 acres of the

5 ceded public lands for homesteading by Native Ha6 waiians, thereby affirming the special relationship

7 between the United States and the Native Hawai8 ians.

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

10 provide for the admission of the State of Hawaii into

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

12 the United States reaffirmed the special relationship

13 between the United States and the Native Hawaiian

14 people—

15 (A) by transferring what the United States

16 deemed to be a trust responsibility for the ad17 ministration of the Hawaiian Home Lands to

18 the State of Hawaii, but continuing Federal su19 perintendence by retaining the power to enforce

20 the trust, including the exclusive right of the

21 United States to consent to land exchanges and

22 any amendments to the Hawaiian Homes Com23 mission Act, 1920, enacted by the legislature of

24 the State of Hawaii affecting the rights of bene25 ficiaries under such Act; and
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1 (B) by ceding to the State of Hawaii title

2 to the public lands formerly held by the United

3 States, mandating that such lands be held ‘‘in

4 public trust’’ for ‘‘the betterment of the condi5 tions of Native Hawaiians, as defined in the

6 Hawaiian Homes Commission Act, 1920’’, and

7 continuing Federal superintendence by retain8 ing the exclusive legal responsibility to enforce

9 this public trust.

10 (6) In recognition of the special relationship

11 that exists between the United States and the Native

12 Hawaiian people, Congress has extended to Native

13 Hawaiians the same rights and privileges accorded

14 to American Indians and Alaska Natives under the

15 Native American Programs Act of 1974, the Amer16 ican Indian Religious Freedom Act, the National

17 Museum of the American Indian Act, the Native

18 American Graves Protection and Repatriation Act,

19 the National Historic Preservation Act, the Native

20 American Languages Act, the American Indian,

21 Alaska Native and Native Hawaiian Culture and

22 Arts Development Act, the Job Training and Part23 nership Act, and the Older Americans Act of 1965.
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1 (7) The special relationship has been recognized

2 and reaffirmed by the United States in the area of

3 housing—

4 (A) through the authorization of mortgage

5 loans insured by the Federal Housing Adminis6 tration for the purchase, construction, or refi7 nancing of homes on Hawaiian Home Lands

8 under the National Housing Act;

9 (B) by mandating Native Hawaiian rep10 resentation on the National Commission on

11 American Indian, Alaska Native, and Native

12 Hawaiian Housing;

13 (C) by the inclusion of Native Hawaiians

14 in the Native American Veterans’ Home Loan

15 Equity Act; and

16 (D) by enactment of the Hawaiian Home

17 Lands Recovery Act, which establishes a proc18 ess that enables the Federal Government to

19 convey lands to the Department of Hawaiian

20 Home Lands equivalent in value to lands ac21 quired by the Federal Government.

22 (b) PURPOSES.—The purposes of this Act are as fol23 lows:

24 (1) To implement the recommendation of the

25 National Commission on American Indian, Alaska
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1 Native, and Native Hawaiian Housing (in this Act

2 referred to as the ‘‘Commission’’) that Congress es3 tablish a Native Hawaiian Housing and Infrastruc4 ture Assistance Program to alleviate and address the

5 severe housing needs of Native Hawaiians by extend6 ing to them the same Federal housing assistance

7 available to American Indians and Alaska Natives.

8 (2) To address the following needs of the Na9 tive Hawaiian population, as documented in the

10 Final Report of the Commission, ‘‘Building the Fu11 ture: A Blueprint for Change’’ (1992); the United

12 States Department of Housing and Urban Develop13 ment report, ‘‘Housing Problems and Needs of Na14 tive Hawaiians (1995);’’ and the State Department

15 of Hawaiian Home Lands report ‘‘Department of

16 Hawaiian Home Lands Beneficiary Needs Study’’

17 (1995):

18 (A) Native Hawaiians experience the high19 est percentage of housing problems in the Na20 tion: 49 percent, compared to 44 percent for

21 American Indian and Alaska Native households

22 in tribal areas, and 27 percent for all United

23 States households, particularly in the area of

24 overcrowding (27 percent versus 3 percent na-
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1 tionally) with 36 percent of Hawaiian home2 lands households experiencing overcrowding.

3 (B) Native Hawaiians have the worst hous4 ing conditions in the State of Hawaii and are

5 seriously over represented in the State’s home6 less population, representing over 30 percent.

7 (C) Among the Native Hawaiian popu8 lation, the needs of the native Hawaiians eligi9 ble for Hawaiian homelands are the most se10 vere. 95 percent of the current applicants, ap11 proximately 13,000 Native Hawaiians, are in

12 need of housing, with one-half of those appli13 cant households facing overcrowding and one14 third paying more than 30 percent of their in15 come for shelter. Under Department of Housing

16 and Urban Development guidelines, 70.8 per17 cent of Department of Hawaiian Homelands

18 lessees and applicants fall below the Depart19 ment of Housing and Urban Development me20 dian family income, with more than half having

21 incomes below 30 percent.

22 SEC. 3. HOUSING ASSISTANCE.

23 The Native American Housing Assistance and Self24 Determination Act of 1996 (Public Law 104–330) is

25 amended by adding at the end the following new title:
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1 ‘‘TITLE VIII—HOUSING ASSIST2 ANCE FOR NATIVE HAWAI3 IANS

4 ‘‘SEC. 801. DEFINITIONS.

5 ‘‘In this title—

6 ‘‘(1) the term ‘Department of Hawaiian Home

7 Lands’ means the department of the State of Hawaii

8 that is responsible for the administration of the Ha9 waiian Homes Commission Act, 1920;

10 ‘‘(2) the term ‘Hawaiian Home Lands’ means

11 those lands set aside by the United States for home12 steading by Native Hawaiians under the Hawaiian

13 Homes Commission Act, 1920, and any other lands

14 acquired pursuant to that Act; and

15 ‘‘(3) the term ‘Native Hawaiian’ has the same

16 meaning as in section 201 of the Hawaiian Homes

17 Commission Act, 1920.

18 ‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING AC19 TIVITIES.

20 ‘‘(a) AUTHORITY.—For each fiscal year, the Sec21 retary shall (to the extent amounts are made available to

22 carry out this title) make grants under this section on be23 half of Native Hawaiian families to carry out affordable

24 housing activities in the State of Hawaii. Under such a

25 grant, the Secretary shall provide the grant amounts di-
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1 rectly to the Department of Hawaiian Home Lands. The

2 Department of Hawaiian Home Lands shall, to the maxi3 mum extent practicable, employ private nonprofit organi4 zations experienced in the planning and development of

5 affordable housing for Native Hawaiians, in order to carry

6 out such activities.

7 ‘‘(b) APPLICABILITY OF OTHER PROVISIONS.—

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

9 titles I through IV apply to assistance provided

10 under this section in the same manner as titles I

11 through IV apply to assistance provided on behalf of

12 an Indian tribe under title I.

13 ‘‘(2) EXCEPTION.—The Secretary may by regu14 lation provide for such modifications to the applica15 bility of titles I through IV to assistance provided

16 under this section as the Secretary determines to be

17 necessary to meet the unique housing needs of Na18 tive Hawaiians.

19 ‘‘SEC. 803. AUTHORIZATION OF APPROPRIATIONS.

20 ‘‘There are authorized to be appropriated such sums

21 as may be necessary to carry out this title for each of

22 fiscal years 1997, 1998, 1999, 2000, and 2001.’’.
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1 SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUS2 ING.

3 Section 184 of the Housing and Community Develop4 ment Act of 1992 (12 U.S.C. 1715z–13a) is amended—

5 (1) in subsection (k), by adding at the end the

6 following new paragraphs:

7 ‘‘(10) The term ‘Hawaiian Home Lands’ means

8 those lands set aside by the United States for home9 steading by Native Hawaiians under the Hawaiian

10 Homes Commission Act, 1920, and any other lands

11 acquired pursuant to that Act.

12 ‘‘(11) The term ‘Native Hawaiian’ has the same

13 meaning as in section 201 of the Hawaiian Homes

14 Commission Act, 1920.

15 ‘‘(12) The term ‘Native Hawaiian housing au16 thority’ means any public body (or agency or instru17 mentality thereof) established under the laws of the

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

19 assist in the development or operation of low-income

20 housing for Native Hawaiians, and includes the De21 partment of Hawaiian Home Lands and the Office

22 of Hawaiian Affairs.’’; and

23 (2) by adding at the end the following new sub24 section:

25 ‘‘(l) APPLICABILITY TO NATIVE HAWAIIAN HOUS26 ING.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

2 and (3), subsections (a) through (k) apply to Native

3 Hawaiian families, Native Hawaiian housing au4 thorities, and private nonprofit organizations experi5 enced in the planning and development of affordable

6 housing for Native Hawaiians, in the same manner

7 as those subsections apply to Indian families and to

8 Indian housing authorities, respectively.

9 ‘‘(2) EXCEPTION.—The Secretary may by regu10 lation provide for such modifications to the applica11 bility of subsections (a) through (k) to Native Ha12 waiian families, Native Hawaiian housing authori13 ties, and private nonprofit organizations experienced

14 in the planning and development of affordable hous15 ing for Native Hawaiians as the Secretary deter16 mines to be necessary to meet the unique housing

17 needs of Native Hawaiians.

18 ‘‘(3) LIMITATION.—Any assistance provided

19 under this subsection, including any assistance pro20 vided to Native Hawaiians not residing on the Ha21 waiian Home Lands, shall be limited to the State of

22 Hawaii.

23 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—

24 There are authorized to be appropriated such sums

25 as may be necessary to carry out this subsection.’’.
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Native American Hous3 ing Assistance and Self-Determination Amendments of

4 1998’’.

5 SEC. 2. FINDINGS.

6 Congress finds that—

7 (1) the United States has undertaken a respon8 sibility to promote the general welfare of the United

9 States by—

10 (A) employing its resources to remedy the

11 unsafe and unsanitary housing conditions and

12 the acute shortage of decent, safe, and sanitary

13 dwellings for families of lower income; and

14 (B) developing effective partnerships with

15 governmental and private entities to accomplish

16 the objectives referred to in subparagraph (A);

17 (2) pursuant to the provisions of the Hawaiian

18 Homes Commission Act, 1920 (42 Stat. 108 et seq.),

19 the United States set aside 200,000 acres of land in

20 the Federal territory that later became the State of

21 Hawaii in order to establish a homeland for the na22 tive people of Hawaii—Native Hawaiians;

23 (3) despite the intent of Congress in 1920 to ad24 dress the housing needs of Native Hawaiians through

25 the enactment of the Hawaiian Homes Commission

26 Act, 1920 (42 Stat. 108 et seq.), some agencies of the
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1 Federal Government have taken the legal position that

2 subsequently enacted Federal housing laws designed to

3 address the housing needs of all eligible families in

4 the United States could not be extended to address the

5 needs for housing and infrastructure development on

6 Hawaiian home lands (as that term is defined in sec7 tion 801 of the Native American Housing Assistance

8 and Self-Determination Act of 1996, as added by sec9 tion 3 of this Act) with the result that otherwise eligi10 ble Native Hawaiians residing on the Hawaiian

11 home lands have been foreclosed from participating in

12 Federal housing assistance programs available to all

13 other eligible families in the United States;

14 (4) although Federal housing assistance pro15 grams have been administered on a racially neutral

16 basis in the State of Hawaii, Native Hawaiians con17 tinue to have the greatest unmet need for housing and

18 the highest rates of overcrowding in the United States;

19 (5) among the Native American population of

20 the United States, Native Hawaiians experience the

21 highest percentage of housing problems in the United

22 States, as the percentage—

23 (A) of housing problems in the Native Ha24 waiian population is 49 percent, as compared

25 to—
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1 (i) 44 percent for American Indian

2 and Alaska Native households in Indian

3 country; and

4 (ii) 27 percent for all other households

5 in the United States; and

6 (B) overcrowding in the Native Hawaiian

7 population is 36 percent as compared to 3 per8 cent for all other households in the United

9 States;

10 (6) among the Native Hawaiian population, the

11 needs of Native Hawaiians, as that term is defined in

12 section 801 of the Native American Housing Assist13 ance and Self-Determination Act of 1996, as added by

14 section 3 of this Act, eligible to reside on the Hawai15 ian Home Lands are the most severe, as—

16 (A) the percentage of overcrowding in Na17 tive Hawaiian households on the Hawaiian

18 Home Lands is 36 percent; and

19 (B) approximately 13,000 Native Hawai20 ians, which constitute 95 percent of the Native

21 Hawaiians who are eligible to reside on the Ha22 waiian Home Lands, are in need of housing;

23 (7) applying the Department of Housing and

24 Urban Development guidelines—
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1 (A) 70.8 percent of Native Hawaiians who

2 either reside or who are eligible to reside on the

3 Hawaiian Home Lands have incomes that fall

4 below the median family income; and

5 (B) 50 percent of Native Hawaiians who ei6 ther reside or who are eligible to reside on the

7 Hawaiian Home Lands have incomes below 30

8 percent of the median family income; and

(8) 1 9 ⁄3 of those Native Hawaiians who are eligi10 ble to reside on the Hawaiian Home Lands pay more

than 30 percent of their income for shelter, and 1 11 ⁄2 of

12 those Native Hawaiians face overcrowding;

13 (9) the extraordinarily severe housing needs of

14 Native Hawaiians demonstrate that Native Hawai15 ians who either reside on, or are eligible to reside on,

16 Hawaiian Home Lands have been denied equal access

17 to Federal low-income housing assistance programs

18 available to other qualified residents of the United

19 States, and that a more effective means of addressing

20 their housing needs must be authorized;

21 (10) consistent with the recommendations of the

22 National Commission on American Indian, Alaska

23 Native, and Native Hawaiian Housing, and in order

24 to address the continuing prevalence of extraor25 dinarily severe housing needs among Native Hawai-
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1 ians who either reside or are eligible to reside on the

2 Hawaiian Home Lands, Congress finds it necessary

3 to extend the Federal low-income housing assistance

4 available to American Indians and Alaska Natives

5 under the Native American Housing Assistance and

6 Self-Determination Act of 1996 (25 U.S.C. 4101 et

7 seq.) to those Native Hawaiians;

8 (11) under the treaty-making power of the

9 United States, Congress had the authority to confirm

10 a treaty between the United States and the govern11 ment that represented the Hawaiian people, and

12 under clause 3 of section 8 of article I of the Constitu13 tion, the authority of Congress to address matters af14 fecting the indigenous peoples of the United States in15 cludes the authority to address matters affecting Na16 tive Hawaiians;

17 (12) through treaties, Federal statutes, and rul18 ings of the Federal courts, the United States has rec19 ognized and reaffirmed that—

20 (A) the political status of Native Hawaiians

21 is comparable to that of American Indians and

22 Alaska Natives; and

23 (B) the aboriginal, indigenous people of the

24 United States have—
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1 (i) a continuing right to autonomy in

2 their internal affairs; and

3 (ii) an ongoing right of self-determina4 tion and self-governance that has never been

5 extinguished;

6 (13) the political relationship between the United

7 States and the Native Hawaiian people has been rec8 ognized and reaffirmed by the United States as evi9 denced by the inclusion of Native Hawaiians in—

10 (A) the Native American Programs Act of

11 1974 (42 U.S.C. 2291 et seq.);

12 (B) the American Indian Religious Free13 dom Act (42 U.S.C. 1996 et seq.);

14 (C) the National Museum of the American

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

16 (D) the Native American Graves Protection

17 and Repatriation Act (25 U.S.C. 3001 et seq.);

18 (E) the National Historic Preservation Act

19 (16 U.S.C. 470 et seq.);

20 (F) the Native American Languages Act of

21 1992 (106 Stat. 3434);

22 (G) the American Indian, Alaska Native

23 and Native Hawaiian Culture and Arts Develop24 ment Act (20 U.S.C. 4401 et seq.);
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1 (H) the Job Training Partnership Act (29

2 U.S.C. 1501 et seq.); and

3 (I) the Older Americans Act of 1965 (42

4 U.S.C. 3001 et seq.); and

5 (14) in the area of housing, the United States

6 has recognized and reaffirmed the political relation7 ship with the Native Hawaiian people through—

8 (A) the enactment of the Hawaiian Homes

9 Commission Act, 1920 (42 Stat. 108 et seq.),

10 which set aside approximately 200,000 acres of

11 public lands that became known as Hawaiian

12 Home Lands in the Territory of Hawaii that

13 had been ceded to the United States for home14 steading by Native Hawaiians in order to reha15 bilitate a landless and dying people;

16 (B) the enactment of the Act entitled ‘‘An

17 Act to provide for the admission of the State of

18 Hawaii into the Union’’, approved March 18,

19 1959 (73 Stat. 4)—

20 (i) by ceding to the State of Hawaii

21 title to the public lands formerly held by the

22 United States, and mandating that those

23 lands be held in public trust, for the better24 ment of the conditions of Native Hawaiians,

25 as that term is defined in section 801(15) of
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1 the Native American Housing Assistance

2 and Self-Determination Act of 1996, as

3 added by section 3 of this Act; and

4 (ii) by transferring what the United

5 States considered to be a trust responsibility

6 for the administration of Hawaiian Home

7 Lands to the State of Hawaii, but retaining

8 the authority to enforce the trust, including

9 the exclusive right of the United States to

10 consent to any actions affecting the lands

11 which comprise the corpus of the trust and

12 any amendments to the Hawaiian Homes

13 Commission Act, 1920 (42 Stat. 108 et

14 seq.), enacted by the legislature of the State

15 of Hawaii affecting the rights of bene16 ficiaries under the Act;

17 (C) the authorization of mortgage loans in18 sured by the Federal Housing Administration for

19 the purchase, construction, or refinancing of

20 homes on Hawaiian Home Lands under the Act

21 of June 27, 1934 (commonly referred to as the

22 ‘‘National Housing Act’’ (42 Stat. 1246 et seq.,

23 chapter 847; 12 U.S.C. 1701 et seq.));

24 (D) authorizing Native Hawaiian represen25 tation on the National Commission on American
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1 Indian, Alaska Native, and Native Hawaiian

2 Housing under Public Law 101–235;

3 (E) the inclusion of Native Hawaiians in

4 the definition under section 3764 of title 38,

5 United States Code, applicable to subchapter V

6 of chapter 37 of title 38, United States Code (re7 lating to a housing loan program for Native

8 American veterans); and

9 (F) the enactment of the Hawaiian Home

10 Lands Recovery Act (109 Stat. 357; 48 U.S.C.

11 491, note prec.) which establishes a process for

12 the conveyance of Federal lands to the Depart13 ment of Hawaiian Homes Lands that are equiv14 alent in value to lands acquired by the United

15 States from the Hawaiian Home Lands inven16 tory.

17 SEC. 3. HOUSING ASSISTANCE.

18 The Native American Housing Assistance and Self-De19 termination Act of 1996 (25 U.S.C. 4101 et seq.) is amend20 ed by adding at the end the following:

21 ‘‘TITLE VIII—HOUSING ASSIST22 ANCE FOR NATIVE HAWAI23 IANS

24 ‘‘SEC. 801. DEFINITIONS.

25 ‘‘In this title:
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1 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS;

2 DEPARTMENT.—The term ‘Department of Hawaiian

3 Home Lands’ or ‘Department’ means the agency or

4 department of the government of the State of Hawaii

5 that is responsible for the administration of the Ha6 waiian Homes Commission Act, 1920 (42 Stat. 108

7 et seq.).

8 ‘‘(2) DIRECTOR.—The term ‘Director’ means the

9 Director of the Department of Hawaiian Home

10 Lands.

11 ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMI12 LIES.—

13 ‘‘(A) IN GENERAL.—The term ‘elderly fam14 ily’ or ‘near-elderly family’ means a family

15 whose head (or his or her spouse), or whose sole

16 member, is—

17 ‘‘(i) for an elderly family, an elderly

18 person; or

19 ‘‘(ii) for a near-elderly family, a near20 elderly person.

21 ‘‘(B) CERTAIN FAMILIES INCLUDED.—The

22 term ‘elderly family’ or ‘near-elderly family’ in23 cludes—
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1 ‘‘(i) 2 or more elderly persons or near2 elderly persons, as the case may be, living

3 together; and

4 ‘‘(ii) 1 or more persons described in

5 clause (i) living with 1 or more persons de6 termined under the housing plan to be es7 sential to their care or well-being.

8 ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha9 waiian Home Lands’ means lands that—

10 ‘‘(A) have the status as Hawaiian home

11 lands under section 204 of the Hawaiian Homes

12 Commission Act (42 Stat. 110); or

13 ‘‘(B) are acquired pursuant to that Act.

14 ‘‘(5) HOUSING AREA.—The term ‘housing area’

15 means an area of Hawaiian Home Lands with re16 spect to which the Department of Hawaiian Home

17 Lands is authorized to provide assistance for afford18 able housing under this Act.

19 ‘‘(6) HOUSING ENTITY.—The term ‘housing en20 tity’ means the Department of Hawaiian Home

21 Lands.

22 ‘‘(7) HOUSING PLAN.—The term ‘housing plan’

23 means a plan developed by the Department of Hawai24 ian Home Lands.
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1 ‘‘(8) MEDIAN INCOME.—The term ‘median in2 come’ means, with respect to an area that is a Ha3 waiian housing area, the greater of—

4 ‘‘(A) the median income for the Hawaiian

5 housing area, which shall be determined by the

6 Secretary; or

7 ‘‘(B) the median income for the State of

8 Hawaii.

9 ‘‘(9) NATIVE HAWAIIAN.—The term ‘Native Ha10 waiian’ has the meaning given the term ‘Native Ha11 waiian’ in section 201 of the Hawaiian Homes Com12 mission Act, 1920 (42 Stat. 108 et seq.).

13 ‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING AC14 TIVITIES.

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

16 Secretary shall (to the extent amounts are made available

17 to carry out this title) make a grant under this title to the

18 Department of Hawaiian Home Lands to carry out afford19 able housing activities for Native Hawaiian families on or

20 near Hawaiian Home Lands.

21 ‘‘(b) PLAN REQUIREMENT.—

22 ‘‘(1) IN GENERAL.—The Secretary may make a

23 grant under this title to the Department of Hawaiian

24 Home Lands for a fiscal year only if—
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1 ‘‘(A) the Director has submitted to the Sec2 retary a housing plan for that fiscal year; and

3 ‘‘(B) the Secretary has determined under

4 section 804 that the housing plan complies with

5 the requirements of section 803.

6 ‘‘(2) WAIVER.—The Secretary may waive the ap7 plicability of the requirements under paragraph (1),

8 in part, if the Secretary finds that the Department of

9 Hawaiian Home Lands has not complied or cannot

10 comply with those requirements due to circumstances

11 beyond the control of the Department of Hawaiian

12 Home Lands.

13 ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES

14 UNDER PLAN.—Except as provided in subsection (e),

15 amounts provided under a grant under this section may

16 be used only for affordable housing activities under this title

17 that are consistent with a housing plan approved under sec18 tion 804.

19 ‘‘(d) ADMINISTRATIVE EXPENSES.—

20 ‘‘(1) IN GENERAL.—The Secretary shall, by regu21 lation, authorize the Department of Hawaiian Home

22 Lands to use a percentage of any grant amounts re23 ceived under this title for any reasonable administra24 tive and planning expenses of the Department relat-
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1 ing to carrying out this title and activities assisted

2 with those amounts.

3 ‘‘(2) ADMINISTRATIVE AND PLANNING EX4 PENSES.—The administrative and planning expenses

5 referred to in paragraph (1) include—

6 ‘‘(A) costs for salaries of individuals en7 gaged in administering and managing affordable

8 housing activities assisted with grant amounts

9 provided under this title; and

10 ‘‘(B) expenses incurred in preparing a

11 housing plan under section 803.

12 ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Director

13 shall make all reasonable efforts, consistent with the pur14 poses of this title, to maximize participation by the private

15 sector, including nonprofit organizations and for-profit en16 tities, in implementing a housing plan that has been ap17 proved by the Secretary under section 803.

18 ‘‘(f) APPLICABILITY OF OTHER PROVISIONS.—

19 ‘‘(1) IN GENERAL.—The Secretary shall be guid20 ed by the relevant program requirements of titles I,

21 II, and IV in the implementation of housing assist22 ance programs for Native Hawaiians under this title.

23 ‘‘(2) EXCEPTION.—The Secretary may make ex24 ceptions to, or modifications of, program require25 ments for Native American housing assistance set
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1 forth in titles I, II, and IV as necessary and appro2 priate to meet the unique situation and housing needs

3 of Native Hawaiians.

4 ‘‘SEC. 803. HOUSING PLAN.

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

6 ‘‘(1) require the Director to submit a housing

7 plan under this section for each fiscal year; and

8 ‘‘(2) provide for the review of each plan submit9 ted under paragraph (1).

10 ‘‘(b) 5-YEAR PLAN.—Each housing plan under this

11 section shall—

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

13 and

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

15 beginning with the fiscal year for which the plan is

16 submitted, the following information:

17 ‘‘(A) MISSION STATEMENT.—A general

18 statement of the mission of the Department of

19 Hawaiian Home Lands to serve the needs of the

20 low-income families to be served by the Depart21 ment.

22 ‘‘(B) GOAL AND OBJECTIVES.—A statement

23 of the goals and objectives of the Department of

24 Hawaiian Home Lands to enable the Depart-
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1 ment to serve the needs identified in subpara2 graph (A) during the period.

3 ‘‘(C) ACTIVITIES PLANS.—An overview of

4 the activities planned during the period includ5 ing an analysis of the manner in which the ac6 tivities will enable the Department to meet its

7 mission, goals, and objectives.

8 ‘‘(c) 1-YEAR PLAN.—A housing plan under this section

9 shall—

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

11 and

12 ‘‘(2) contain the following information relating

13 to the fiscal year for which the assistance under this

14 title is to be made available:

15 ‘‘(A) GOALS AND OBJECTIVES.—A statement

16 of the goals and objectives to be accomplished

17 during the period covered by the plan.

18 ‘‘(B) STATEMENT OF NEEDS.—A statement

19 of the housing needs of the low-income families

20 served by the Department and the means by

21 which those needs will be addressed during the

22 period covered by the plan, including—

23 ‘‘(i) a description of the estimated

24 housing needs and the need for assistance

25 for the low-income families to be served by
28

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1 the Department, including a description of

2 the manner in which the geographical dis3 tribution of assistance is consistent with—

4 ‘‘(I) the geographical needs of

5 those families; and

6 ‘‘(II) needs for various categories

7 of housing assistance; and

8 ‘‘(ii) a description of the estimated

9 housing needs for all families to be served

10 by the Department.

11 ‘‘(C) FINANCIAL RESOURCES.—An operat12 ing budget for the Department of Hawaiian

13 Home Lands, in a form prescribed by the Sec14 retary, that includes—

15 ‘‘(i) an identification and a descrip16 tion of the financial resources reasonably

17 available to the Department to carry out the

18 purposes of this title, including an expla19 nation of the manner in which amounts

20 made available will be used to leverage ad21 ditional resources; and

22 ‘‘(ii) the uses to which the resources de23 scribed in clause (i) will be committed, in24 cluding—
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1 ‘‘(I) eligible and required afford2 able housing activities; and

3 ‘‘(II) administrative expenses.

4 ‘‘(D) AFFORDABLE HOUSING RESOURCES.—

5 A statement of the affordable housing resources

6 currently available at the time of the submittal

7 of the plan and to be made available during the

8 period covered by the plan, including—

9 ‘‘(i) a description of the significant

10 characteristics of the housing market in the

11 State of Hawaii, including the availability

12 of housing from other public sources, private

13 market housing; and

14 ‘‘(ii) the manner in which the charac15 teristics referred to in clause (i) influence

16 the decision of the Department of Hawaiian

17 Home Lands to use grant amounts to be

18 provided under this title for—

19 ‘‘(I) rental assistance;

20 ‘‘(II) the production of new units;

21 ‘‘(III) the acquisition of existing

22 units; or

23 ‘‘(IV) the rehabilitation of units;

24 ‘‘(iii) a description of the structure, co25 ordination, and means of cooperation be-
30

•S 109 RS

1 tween the Department of Hawaiian Home

2 Lands and any other governmental entities

3 in the development, submission, or imple4 mentation of housing plans, including a de5 scription of—

6 ‘‘(I) the involvement of private,

7 public, and nonprofit organizations

8 and institutions;

9 ‘‘(II) the use of loan guarantees

10 under section 184A of the Housing and

11 Community Development Act of 1992;

12 and

13 ‘‘(III) other housing assistance

14 provided by the United States, includ15 ing loans, grants, and mortgage insur16 ance;

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

18 which the plan will address the needs iden19 tified pursuant to subparagraph (C);

20 ‘‘(v) a description of—

21 ‘‘(I) any existing or anticipated

22 homeownership programs and rental

23 programs to be carried out during the

24 period covered by the plan; and
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•S 109 RS

1 ‘‘(II) the requirements and assist2 ance available under the programs re3 ferred to in subclause (I);

4 ‘‘(vi) a description of—

5 ‘‘(I) any existing or anticipated

6 housing rehabilitation programs nec7 essary to ensure the long-term viability

8 of the housing to be carried out during

9 the period covered by the plan; and

10 ‘‘(II) the requirements and assist11 ance available under the programs re12 ferred to in subclause (I);

13 ‘‘(vii) a description of—

14 ‘‘(I) all other existing or antici15 pated housing assistance provided by

16 the Department of Hawaiian Home

17 Lands during the period covered by the

18 plan, including—

19 ‘‘(aa) transitional housing;

20 ‘‘(bb) homeless housing;

21 ‘‘(cc) college housing; and

22 ‘‘(dd) supportive services

23 housing; and

24 ‘‘(II) the requirements and assist25 ance available under such programs;
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•S 109 RS

1 ‘‘(viii)(I) a description of any housing

2 to be demolished or disposed of;

3 ‘‘(II) a timetable for that demolition or

4 disposition; and

5 ‘‘(III) any other information required

6 by the Secretary with respect to that demo7 lition or disposition;

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

9 which the Department of Hawaiian Home

10 Lands will coordinate with welfare agencies

11 in the State of Hawaii to ensure that resi12 dents of the affordable housing will be pro13 vided with access to resources to assist in

14 obtaining employment and achieving self15 sufficiency;

16 ‘‘(x) a description of the requirements

17 established by the Department of Hawaiian

18 Home Lands to—

19 ‘‘(I) promote the safety of resi20 dents of the affordable housing;

21 ‘‘(II) facilitate the undertaking of

22 crime prevention measures;

23 ‘‘(III) allow resident input and

24 involvement, including the establish25 ment of resident organizations; and
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•S 109 RS

1 ‘‘(IV) allow for the coordination of

2 crime prevention activities between the

3 Department and local law enforcement

4 officials; and

5 ‘‘(xi) a description of the entities that

6 will carry out the activities under the plan,

7 including the organizational capacity and

8 key personnel of the entities.

9 ‘‘(E) CERTIFICATION OF COMPLIANCE.—

10 Evidence of compliance that shall include, as ap11 propriate—

12 ‘‘(i) a certification that the Depart13 ment of Hawaiian Home Lands will com14 ply with—

15 ‘‘(I) title VI of the Civil Rights

16 Act of 1964 (42 U.S.C. 2000d et seq.)

17 or with title VIII of the Civil Rights

18 Act of 1968 (42 U.S.C. 3601 et seq.) in

19 carrying out this title, to the extent

20 that such title is applicable; and

21 ‘‘(II) other applicable Federal

22 statutes;

23 ‘‘(ii) a certification that the Depart24 ment will require adequate insurance cov25 erage for housing units that are owned and
34

•S 109 RS

1 operated or assisted with grant amounts

2 provided under this title, in compliance

3 with such requirements as may be estab4 lished by the Secretary;

5 ‘‘(iii) a certification that policies are

6 in effect and are available for review by the

7 Secretary and the public governing the eli8 gibility, admission, and occupancy of fami9 lies for housing assisted with grant amounts

10 provided under this title;

11 ‘‘(iv) a certification that policies are in

12 effect and are available for review by the

13 Secretary and the public governing rents

14 charged, including the methods by which

15 such rents or homebuyer payments are de16 termined, for housing assisted with grant

17 amounts provided under this title; and

18 ‘‘(v) a certification that policies are in

19 effect and are available for review by the

20 Secretary and the public governing the

21 management and maintenance of housing

22 assisted with grant amounts provided under

23 this title.

24 ‘‘(d) APPLICABILITY OF CIVIL RIGHTS STATUTES.—
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1 ‘‘(1) IN GENERAL.—To the extent that the re2 quirements of title VI of the Civil Rights Act of 1964

3 (42 U.S.C. 2000d et seq.) or of title VIII of the Civil

4 Rights Act of 1968 (42 U.S.C. 3601 et seq.) apply to

5 assistance provided under this title, nothing in the re6 quirements concerning discrimination on the basis of

7 race shall be construed to prevent the provision of as8 sistance under this title—

9 ‘‘(A) to the Department of Hawaiian Home

10 Lands on the basis that the Department served

11 Native Hawaiians; or

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

13 the family is a Native Hawaiian family.

14 ‘‘(2) CIVIL RIGHTS.—Program eligibility under

15 this title may be restricted to Native Hawaiians. Sub16 ject to the preceding sentence, no person may be dis17 criminated against on the basis of race, color, na18 tional origin, religion, sex, familial status, or disabil19 ity.

20 ‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As a con21 dition of receiving grant amounts under this title, the De22 partment of Hawaiian Home Lands shall, to the extent

23 practicable, provide for private nonprofit organizations ex24 perienced in the planning and development of affordable
36

•S 109 RS

1 housing for Native Hawaiians to carry out affordable hous2 ing activities with those grant amounts.

3 ‘‘SEC. 804. REVIEW OF PLANS.

4 ‘‘(a) REVIEW AND NOTICE.—

5 ‘‘(1) REVIEW.—

6 ‘‘(A) IN GENERAL.—The Secretary shall

7 conduct a review of a housing plan submitted to

8 the Secretary under section 803 to ensure that

9 the plan complies with the requirements of that

10 section.

11 ‘‘(B) LIMITATION.—The Secretary shall

12 have the discretion to review a plan referred to

13 in subparagraph (A) only to the extent that the

14 Secretary considers that the review is necessary.

15 ‘‘(2) NOTICE.—

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

17 after receiving a plan under section 803, the Sec18 retary shall notify the Director of the Depart19 ment of Hawaiian Home Lands whether the

20 plan complies with the requirements under that

21 section.

22 ‘‘(B) EFFECT OF FAILURE OF SECRETARY

23 TO TAKE ACTION.—For purposes of this title, if

24 the Secretary does not notify the Director, as re25 quired under this subsection and subsection (b),
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1 upon the expiration of the 60-day period de2 scribed in subparagraph (A)—

3 ‘‘(i) the plan shall be considered to

4 have been determined to comply with the re5 quirements under section 803; and

6 ‘‘(ii) the Director shall be considered to

7 have been notified of compliance.

8 ‘‘(b) NOTICE OF REASONS FOR DETERMINATION OF

9 NONCOMPLIANCE.—If the Secretary determines that a plan

10 submitted under section 803 does not comply with the re11 quirements of that section, the Secretary shall specify in

12 the notice under subsection (a)—

13 ‘‘(1) the reasons for noncompliance; and

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

15 meet the requirements of section 803.

16 ‘‘(c) REVIEW.—

17 ‘‘(1) IN GENERAL.—After the Director of the De18 partment of Hawaiian Home Lands submits a hous19 ing plan under section 803, or any amendment or

20 modification to the plan to the Secretary, to the ex21 tent that the Secretary considers such action to be

22 necessary to make a determination under this sub23 section, the Secretary shall review the plan (including

24 any amendments or modifications thereto) to deter25 mine whether the contents of the plan—
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1 ‘‘(A) set forth the information required by

2 section 803 to be contained in the housing plan;

3 ‘‘(B) are consistent with information and

4 data available to the Secretary; and

5 ‘‘(C) are not prohibited by or inconsistent

6 with any provision of this Act or any other ap7 plicable law.

8 ‘‘(2) INCOMPLETE PLANS.—If the Secretary de9 termines under this subsection that any of the appro10 priate certifications required under section

11 803(c)(2)(E) are not included in a plan, the plan

12 shall be considered to be incomplete.

13 ‘‘(d) UPDATES TO PLAN.—

14 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

15 after a plan under section 803 has been submitted for

16 a fiscal year, the Director of the Department of Ha17 waiian Home Lands may comply with the provisions

18 of that section for any succeeding fiscal year (with re19 spect to information included for the 5-year period

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

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

22 regarding such changes as may be necessary to update

23 the plan previously submitted.

24 ‘‘(2) COMPLETE PLANS.—The Director shall sub25 mit a complete plan under section 803 not later than
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•S 109 RS

1 4 years after submitting an initial plan under that

2 section, and not less frequently than every 4 years

3 thereafter.

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

5 shall take effect on the date provided by the Secretary pur6 suant to section 807(a) to provide for timely submission

7 and review of the housing plan as necessary for the provi8 sion of assistance under this title for fiscal year 2000.

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

10 STANDARDS.

11 ‘‘(a) PROGRAM INCOME.—

12 ‘‘(1) AUTHORITY TO RETAIN.—The Department

13 of Hawaiian Home Lands may retain any program

14 income that is realized from any grant amounts re15 ceived by the Department under this title if—

16 ‘‘(A) that income was realized after the ini17 tial disbursement of the grant amounts received

18 by the Department; and

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

20 income for affordable housing activities in ac21 cordance with the provisions of this title.

22 ‘‘(2) PROHIBITION OF REDUCTION OF GRANT.—

23 The Secretary may not reduce the grant amount for

24 the Department of Hawaiian Home Lands based sole25 ly on—
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•S 109 RS

1 ‘‘(A) whether the Department retains pro2 gram income under paragraph (1); or

3 ‘‘(B) the amount of any such program in4 come retained.

5 ‘‘(3) EXCLUSION OF AMOUNTS.—The Secretary

6 may, by regulation, exclude from consideration as

7 program income any amounts determined to be so

8 small that compliance with the requirements of this

9 subsection would create an unreasonable administra10 tive burden on the Department.

11 ‘‘(b) LABOR STANDARDS.—

12 ‘‘(1) IN GENERAL.—Any contract or agreement

13 for assistance, sale, or lease pursuant to this title

14 shall contain—

15 ‘‘(A) a provision requiring that an amount

16 not less than the wages prevailing in the locality,

17 as determined or adopted (subsequent to a deter18 mination under applicable State or local law) by

19 the Secretary, shall be paid to all architects,

20 technical engineers, draftsmen, technicians em21 ployed in the development and all maintenance,

22 and laborers and mechanics employed in the op23 eration, of the affordable housing project in24 volved; and
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•S 109 RS

1 ‘‘(B) a provision that an amount not less

2 than the wages prevailing in the locality, as pre3 determined by the Secretary of Labor pursuant

4 to the Act commonly known as the ‘Davis-Bacon

5 Act’ (46 Stat. 1494, chapter 411; 40 U.S.C. 276a

6 et seq.) shall be paid to all laborers and mechan7 ics employed in the development of the affordable

8 housing involved.

9 ‘‘(2) EXCEPTIONS.—Paragraph (1) and provi10 sions relating to wages required under paragraph (1)

11 in any contract or agreement for assistance, sale, or

12 lease under this title, shall not apply to any individ13 ual who performs the services for which the individual

14 volunteered and who is not otherwise employed at any

15 time in the construction work and received no com16 pensation or is paid expenses, reasonable benefits, or

17 a nominal fee for those services.

18 ‘‘SEC. 806. ENVIRONMENTAL REVIEW.

19 ‘‘(a) IN GENERAL.—

20 ‘‘(1) RELEASE OF FUNDS.—

21 ‘‘(A) IN GENERAL.—The Secretary may

22 carry out the alternative environmental protec23 tion procedures described in subparagraph (B)

24 in order to ensure—
42

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

2 Environmental Policy Act of 1969 (42

3 U.S.C. 4321 et seq.) and other provisions of

4 law that further the purposes of such Act

5 (as specified in regulations issued by the

6 Secretary) are most effectively implemented

7 in connection with the expenditure of grant

8 amounts provided under this title; and

9 ‘‘(ii) to the public undiminished pro10 tection of the environment.

11 ‘‘(B) ALTERNATIVE ENVIRONMENTAL PRO12 TECTION PROCEDURE.—In lieu of applying envi13 ronmental protection procedures otherwise appli14 cable, the Secretary may by regulation provide

15 for the release of funds for specific projects to the

16 Department of Hawaiian Home Lands if the Di17 rector of the Department assumes all of the re18 sponsibilities for environmental review, decision19 making, and action under the National Environ20 mental Policy Act of 1969 (42 U.S.C. 4321 et

21 seq.), and such other provisions of law as the reg22 ulations of the Secretary specify, that would

23 apply to the Secretary were the Secretary to un24 dertake those projects as Federal projects.

25 ‘‘(2) REGULATIONS.—
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1 ‘‘(A) IN GENERAL.—The Secretary shall

2 issue regulations to carry out this section only

3 after consultation with the Council on Environ4 mental Quality.

5 ‘‘(B) CONTENTS.—The regulations issued

6 under this paragraph shall—

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

8 environmental reviews performed under this

9 section;

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

11 facilitate training for the performance of

12 such reviews; and

13 ‘‘(iii) provide for the suspension or ter14 mination of the assumption of responsibil15 ities under this section.

16 ‘‘(3) EFFECT ON ASSUMED RESPONSIBILITY.—

17 The duty of the Secretary under paragraph (2)(B)

18 shall not be construed to limit or reduce any respon19 sibility assumed by the Department of Hawaiian

20 Home Lands for grant amounts with respect to any

21 specific release of funds.

22 ‘‘(b) PROCEDURE.—

23 ‘‘(1) IN GENERAL.—The Secretary shall author24 ize the release of funds subject to the procedures under

25 this section only if, not less than 15 days before that
44

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1 approval and before any commitment of funds to such

2 projects, the Director of the Department of Hawaiian

3 Home Lands submits to the Secretary a request for

4 such release accompanied by a certification that meets

5 the requirements of subsection (c).

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

7 the Secretary of a certification described in para8 graph (1) shall be deemed to satisfy the responsibil9 ities of the Secretary under the National Environ10 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

11 and such other provisions of law as the regulations of

12 the Secretary specify to the extent that those respon13 sibilities relate to the release of funds for projects that

14 are covered by that certification.

15 ‘‘(c) CERTIFICATION.—A certification under the proce16 dures under this section shall—

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

18 ‘‘(2) be executed by the Director of the Depart19 ment of Hawaiian Home Lands;

20 ‘‘(3) specify that the Department of Hawaiian

21 Home Lands has fully carried out its responsibilities

22 as described under subsection (a); and

23 ‘‘(4) specify that the Director—

24 ‘‘(A) consents to assume the status of a re25 sponsible Federal official under the National En-
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1 vironmental Policy Act of 1969 (42 U.S.C. 4321

2 et seq.) and each provision of law specified in

3 regulations issued by the Secretary to the extent

4 that those laws apply by reason of subsection (a);

5 and

6 ‘‘(B) is authorized and consents on behalf of

7 the Department of Hawaiian Home Lands and

8 the Director accepts the jurisdiction of the Fed9 eral courts for the purpose of enforcement of the

10 responsibilities of the Director of the Department

11 of Hawaiian Home Lands as such an official.

12 ‘‘SEC. 807. REGULATIONS.

13 ‘‘The Secretary shall issue final regulations necessary

14 to carry out this title not later than June 1, 1999.

15 ‘‘SEC. 808. EFFECTIVE DATE.

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

17 this title shall take effect on June 1, 1999.

18 ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

19 ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI20 LIES.—

21 ‘‘(1) PRIMARY OBJECTIVE.—The national objec22 tives of this title are—

23 ‘‘(A) to assist and promote affordable hous24 ing activities to develop, maintain, and operate

25 affordable housing in safe and healthy environ-
46

•S 109 RS

1 ments for occupancy by low-income Native Ha2 waiian families;

3 ‘‘(B) to ensure better access to private mort4 gage markets and to promote self-sufficiency of

5 low-income Native Hawaiian families;

6 ‘‘(C) to coordinate activities to provide

7 housing for low-income Native Hawaiian fami8 lies with Federal, State and local activities to

9 further economic and community development;

10 ‘‘(D) to plan for and integrate infrastruc11 ture resources on the Hawaiian Home Lands

12 with housing development; and

13 ‘‘(E) to—

14 ‘‘(i) promote the development of private

15 capital markets; and

16 ‘‘(ii) allow the markets referred to in

17 clause (i) to operate and grow, thereby bene18 fiting Native Hawaiian communities.

19 ‘‘(2) ELIGIBLE FAMILIES.—

20 ‘‘(A) IN GENERAL.—Except as provided

21 under subparagraph (B), assistance for eligible

22 housing activities under this title shall be limited

23 to low-income Native Hawaiian families.

24 ‘‘(B) EXCEPTION TO LOW-INCOME REQUIRE25 MENT.—
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1 ‘‘(i) IN GENERAL.—The Director may

2 provide assistance for homeownership ac3 tivities under—

4 ‘‘(I) section 810(b);

5 ‘‘(II) model activities under sec6 tion 810(f); or

7 ‘‘(III) loan guarantee activities

8 under section 184A of the Housing and

9 Community Development Act of 1992

10 to Native Hawaiian families who are

11 not low-income families, to the extent

12 that the Secretary approves the activi13 ties under that section to address a

14 need for housing for those families that

15 cannot be reasonably met without that

16 assistance.

17 ‘‘(ii) LIMITATIONS.—The Secretary

18 shall establish limitations on the amount of

19 assistance that may be provided under this

20 title for activities for families that are not

21 low-income families.

22 ‘‘(C) OTHER FAMILIES.—Notwithstanding

23 paragraph (1), the Director may provide housing

24 or housing assistance provided through affordable

25 housing activities assisted with grant amounts
48

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1 under this title to a family that is not composed

2 of Native Hawaiians if—

3 ‘‘(i) the Department determines that

4 the presence of the family in the housing in5 volved is essential to the well-being of Na6 tive Hawaiian families; and

7 ‘‘(ii) the need for housing for the fam8 ily cannot be reasonably met without the

9 assistance.

10 ‘‘(D) PREFERENCE.—

11 ‘‘(i) IN GENERAL.—A housing plan

12 submitted under section 803 may authorize

13 a preference, for housing or housing assist14 ance provided through affordable housing

15 activities assisted with grant amounts pro16 vided under this title to be provided, to the

17 extent practicable, to families that are eligi18 ble to reside on the Hawaiian Home Lands.

19 ‘‘(ii) APPLICATION.—In any case in

20 which a housing plan provides for pref21 erence described in clause (i), the Director

22 shall ensure that housing activities that are

23 assisted with grant amounts under this title

24 are subject to that preference.
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1 ‘‘(E) USE OF NONPROFIT ORGANIZA2 TIONS.—As a condition of receiving grant

3 amounts under this title, the Department of Ha4 waiian Home Lands, shall to the extent prac5 ticable, provide for private nonprofit organiza6 tions experienced in the planning and develop7 ment of affordable housing for Native Hawaiians

8 to carry out affordable housing activities with

9 those grant amounts.

10 ‘‘SEC. 810. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

11 ‘‘(a) IN GENERAL.—Affordable housing activities

12 under this section are activities conducted in accordance

13 with the requirements of section 811 to—

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

15 rental or homeownership; or

16 ‘‘(2) provide housing services with respect to af17 fordable housing, through the activities described in

18 subsection (b).

19 ‘‘(b) ACTIVITIES.—The activities described in this sub20 section are the following:

21 ‘‘(1) DEVELOPMENT.—The acquisition, new con22 struction, reconstruction, or moderate or substantial

23 rehabilitation of affordable housing, which may in24 clude—

25 ‘‘(A) real property acquisition;
50

•S 109 RS

1 ‘‘(B) site improvement;

2 ‘‘(C) the development of utilities and utility

3 services;

4 ‘‘(D) conversion;

5 ‘‘(E) demolition;

6 ‘‘(F) financing;

7 ‘‘(G) administration and planning; and

8 ‘‘(H) other related activities.

9 ‘‘(2) HOUSING SERVICES.—The provision of

10 housing-related services for affordable housing, includ11 ing—

12 ‘‘(A) housing counseling in connection with

13 rental or homeownership assistance;

14 ‘‘(B) the establishment and support of resi15 dent organizations and resident management

16 corporations;

17 ‘‘(C) energy auditing;

18 ‘‘(D) activities related to the provision of

19 self-sufficiency and other services; and

20 ‘‘(E) other services related to assisting own21 ers, tenants, contractors, and other entities par22 ticipating or seeking to participate in other

23 housing activities assisted pursuant to this sec24 tion.
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1 ‘‘(3) HOUSING MANAGEMENT SERVICES.—The

2 provision of management services for affordable hous3 ing, including—

4 ‘‘(A) the preparation of work specifications;

5 ‘‘(B) loan processing;

6 ‘‘(C) inspections;

7 ‘‘(D) tenant selection;

8 ‘‘(E) management of tenant-based rental as9 sistance; and

10 ‘‘(F) management of affordable housing

11 projects.

12 ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI13 TIES.—The provision of safety, security, and law en14 forcement measures and activities appropriate to pro15 tect residents of affordable housing from crime.

16 ‘‘(5) MODEL ACTIVITIES.—Housing activities

17 under model programs that are—

18 ‘‘(A) designed to carry out the purposes of

19 this title; and

20 ‘‘(B) specifically approved by the Secretary

21 as appropriate for the purpose referred to in sub22 paragraph (A).

23 ‘‘SEC. 811. PROGRAM REQUIREMENTS.

24 ‘‘(a) RENTS.—
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1 ‘‘(1) ESTABLISHMENT.—Subject to paragraph

2 (2), as a condition to receiving grant amounts under

3 this title, the Director shall develop written policies

4 governing rents and homebuyer payments charged for

5 dwelling units assisted under this title, including

6 methods by which such rents and homebuyer pay7 ments are determined.

8 ‘‘(2) MAXIMUM RENT.—In the case of any low9 income family residing in a dwelling unit assisted

10 with grant amounts under this title, the monthly rent

11 or homebuyer payment (as applicable) for that dwell12 ing unit may not exceed 30 percent of the monthly

13 adjusted income of that family.

14 ‘‘(b) MAINTENANCE AND EFFICIENT OPERATION.—

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

16 amounts of any grants received under this title, re17 serve and use for operating under section 810 such

18 amounts as may be necessary to provide for the con19 tinued maintenance and efficient operation of such

20 housing.

21 ‘‘(2) DISPOSAL OF CERTAIN HOUSING.—This

22 subsection may not be construed to prevent the Direc23 tor, or any entity funded by the Department, from de24 molishing or disposing of housing, pursuant to regu25 lations established by the Secretary.
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1 ‘‘(c) INSURANCE COVERAGE.—As a condition to receiv2 ing grant amounts under this title, the Director shall re3 quire adequate insurance coverage for housing units that

4 are owned or operated or assisted with grant amounts pro5 vided under this title.

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

7 receiving grant amounts under this title, the Director shall

8 develop written policies governing the eligibility, admission,

9 and occupancy of families for housing assisted with grant

10 amounts provided under this title.

11 ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a condi12 tion to receiving grant amounts under this title, the Direc13 tor shall develop policies governing the management and

14 maintenance of housing assisted with grant amounts under

15 this title.

16 ‘‘SEC. 812. TYPES OF INVESTMENTS.

17 ‘‘(a) IN GENERAL.—Subject to section 811 and an ap18 plicable housing plan approved under section 803, the Di19 rector shall have—

20 ‘‘(1) the discretion to use grant amounts for af21 fordable housing activities through the use of—

22 ‘‘(A) equity investments;

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

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

25 ‘‘(D) interest subsidies;
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1 ‘‘(E) the leveraging of private investments;

2 or

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

4 Secretary determines to be consistent with the

5 purposes of this title; and

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

7 provided with funds referred to in paragraph (1).

8 ‘‘(b) INVESTMENTS.—The Director of the Department

9 of Hawaiian Home Lands may invest grant amounts for

10 the purposes of carrying out affordable housing activities

11 in investment securities and other obligations, as approved

12 by the Secretary.

13 ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TAR14 GETING.

15 ‘‘(a) IN GENERAL.—Housing shall qualify for afford16 able housing for purposes of this title only if—

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

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

19 available for occupancy only by a family that is

20 a low-income family at the time of the initial oc21 cupancy of that family of that unit; and

22 ‘‘(B) in the case of housing for homeowner23 ship, is made available for purchase only by a

24 family that is a low-income family at the time

25 of purchase; and
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1 ‘‘(2) each dwelling unit in the housing will re2 main affordable, according to binding commitments

3 satisfactory to the Secretary, for—

4 ‘‘(A) the remaining useful life of the prop5 erty (as determined by the Secretary) without re6 gard to the term of the mortgage or to transfer

7 of ownership; or

8 ‘‘(B) such other period as the Secretary de9 termines is the longest feasible period of time

10 consistent with sound economics and the pur11 poses of this title, except upon a foreclosure by

12 a lender (or upon other transfer in lieu of fore13 closure) if that action—

14 ‘‘(i) recognizes any contractual or legal

15 rights of any public agency, nonprofit spon16 sor, or other person or entity to take an ac17 tion that would—

18 ‘‘(I) avoid termination of low-in19 come affordability, in the case of fore20 closure; or

21 ‘‘(II) transfer ownership in lieu of

22 foreclosure; and

23 ‘‘(ii) is not for the purpose of avoiding

24 low-income affordability restrictions, as de25 termined by the Secretary.
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1 ‘‘(b) EXCEPTION.—Notwithstanding subsection (a),

2 housing assisted pursuant to section 809(a)(2)(B) shall be

3 considered affordable housing for purposes of this title.

4 ‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT SELECTION.

5 ‘‘(a) LEASES.—Except to the extent otherwise provided

6 by or inconsistent with the laws of the State of Hawaii,

7 in renting dwelling units in affordable housing assisted

8 with grant amounts provided under this title, the Director,

9 owner, or manager shall use leases that—

10 ‘‘(1) do not contain unreasonable terms and con11 ditions;

12 ‘‘(2) require the Director, owner, or manager to

13 maintain the housing in compliance with applicable

14 housing codes and quality standards;

15 ‘‘(3) require the Director, owner, or manager to

16 give adequate written notice of termination of the

17 lease, which shall be the period of time required under

18 applicable State or local law;

19 ‘‘(4) specify that, with respect to any notice of

20 eviction or termination, notwithstanding any State or

21 local law, a resident shall be informed of the oppor22 tunity, before any hearing or trial, to examine any

23 relevant documents, record, or regulations directly re24 lated to the eviction or termination;
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1 ‘‘(5) require that the Director, owner, or man2 ager may not terminate the tenancy, during the term

3 of the lease, except for serious or repeated violation of

4 the terms and conditions of the lease, violation of ap5 plicable Federal, State, or local law, or for other good

6 cause; and

7 ‘‘(6) provide that the Director, owner, and man8 ager may terminate the tenancy of a resident for any

9 activity, engaged in by the resident, any member of

10 the household of the resident, or any guest or other

11 person under the control of the resident, that—

12 ‘‘(A) threatens the health or safety of, or

13 right to peaceful enjoyment of the premises by,

14 other residents or employees of the Department,

15 owner, or manager;

16 ‘‘(B) threatens the health or safety of, or

17 right to peaceful enjoyment of their premises by,

18 persons residing in the immediate vicinity of the

19 premises; or

20 ‘‘(C) is criminal activity (including drug21 related criminal activity) on or off the premises.

22 ‘‘(b) TENANT OR HOMEBUYER SELECTION.—As a con23 dition to receiving grant amounts under this title, the Di24 rector shall adopt and use written tenant and homebuyer

25 selection policies and criteria that—
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1 ‘‘(1) are consistent with the purpose of providing

2 housing for low-income families;

3 ‘‘(2) are reasonably related to program eligibility

4 and the ability of the applicant to perform the obliga5 tions of the lease; and

6 ‘‘(3) provide for—

7 ‘‘(A) the selection of tenants and home8 buyers from a written waiting list in accordance

9 with the policies and goals set forth in an appli10 cable housing plan approved under section 803;

11 and

12 ‘‘(B) the prompt notification in writing to

13 any rejected applicant of the grounds for that re14 jection.

15 ‘‘SEC. 815. REPAYMENT.

16 ‘‘If the Department of Hawaiian Home Lands uses

17 grant amounts to provide affordable housing under activi18 ties under this title and, at any time during the useful life

19 of the housing, the housing does not comply with the re20 quirement under section 813(a)(2), the Secretary shall—

21 ‘‘(1) reduce future grant payments on behalf of

22 the Department by an amount equal to the grant

23 amounts used for that housing (under the authority

24 of section 818(a)(1)(B)); or
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1 ‘‘(2) require repayment to the Secretary of any

2 amount equal to those grant amounts.

3 ‘‘SEC. 816. ANNUAL ALLOCATION.

4 ‘‘For each fiscal year, the Secretary shall allocate any

5 amounts made available for assistance under this title for

6 the fiscal year, in accordance with the formula established

7 pursuant to section 817 to the Department of Hawaiian

8 Home Lands if the Department complies with the require9 ments under this title for a grant under this title.

10 ‘‘SEC. 817. ALLOCATION FORMULA.

11 ‘‘(a) ESTABLISHMENT.—The Secretary shall, by regu12 lation issued not later than the expiration of the 6-month

13 period beginning on the date of enactment of the Native

14 American Housing Assistance and Self-Determination

15 Amendments of 1998, in the manner provided under section

16 807, establish a formula to provide for the allocation of

17 amounts available for a fiscal year for block grants under

18 this title in accordance with the requirements of this section.

19 ‘‘(b) FACTORS FOR DETERMINATION OF NEED.—The

20 formula under subsection (a) shall be based on factors that

21 reflect the needs for assistance for affordable housing activi22 ties, including—

23 ‘‘(1) the number of low-income dwelling units

24 owned or operated at the time pursuant to a contract

25 between the Director and the Secretary;
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1 ‘‘(2) the extent of poverty and economic distress

2 and the number of Native Hawaiian families eligible

3 to reside on the Hawaiian Home Lands; and

4 ‘‘(3) any other objectively measurable conditions

5 that the Secretary and the Director may specify.

6 ‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In es7 tablishing the formula under subsection (a), the Secretary

8 shall consider the relative administrative capacities of the

9 Department of Hawaiian Home Lands and other challenges

10 faced by the Department, including—

11 ‘‘(1) geographic distribution within Hawaiian

12 Home Lands; and

13 ‘‘(2) technical capacity.

14 ‘‘(d) EFFECTIVE DATE.—This section shall take effect

15 on the date of enactment of the Native American Housing

16 Assistance and Self-Determination Amendments of 1998.

17 ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE.

18 ‘‘(a) ACTIONS BY SECRETARY AFFECTING GRANT

19 AMOUNTS.—

20 ‘‘(1) IN GENERAL.—Except as provided in sub21 section (b), if the Secretary finds after reasonable no22 tice and opportunity for a hearing that the Depart23 ment of Hawaiian Home Lands has failed to comply

24 substantially with any provision of this title, the Sec25 retary shall—
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1 ‘‘(A) terminate payments under this title to

2 the Department;

3 ‘‘(B) reduce payments under this title to the

4 Department by an amount equal to the amount

5 of such payments that were not expended in ac6 cordance with this title; or

7 ‘‘(C) limit the availability of payments

8 under this title to programs, projects, or activi9 ties not affected by such failure to comply.

10 ‘‘(2) ACTIONS.—If the Secretary takes an action

11 under subparagraph (A), (B), or (C) of paragraph

12 (1), the Secretary shall continue that action until the

13 Secretary determines that the failure by the Depart14 ment to comply with the provision has been remedied

15 by the Department and the Department is in compli16 ance with that provision.

17 ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL IN18 CAPACITY.—The Secretary may provide technical assistance

19 for the Department, either directly or indirectly, that is de20 signed to increase the capability and capacity of the Direc21 tor of the Department to administer assistance provided

22 under this title in compliance with the requirements under

23 this title if the Secretary makes a finding under subsection

24 (a), but determines that the failure of the Department to

25 comply substantially with the provisions of this title—
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1 ‘‘(1) is not a pattern or practice of activities

2 constituting willful noncompliance; and

3 ‘‘(2) is a result of the limited capability or ca4 pacity of the Department of Hawaiian Home Lands.

5 ‘‘(c) REFERRAL FOR CIVIL ACTION.—

6 ‘‘(1) AUTHORITY.—In lieu of, or in addition to,

7 any action that the Secretary may take under sub8 section (a), if the Secretary has reason to believe that

9 the Department of Hawaiian Home Lands has failed

10 to comply substantially with any provision of this

11 title, the Secretary may refer the matter to the Attor12 ney General of the United States with a recommenda13 tion that an appropriate civil action be instituted.

14 ‘‘(2) CIVIL ACTION.—Upon receiving a referral

15 under paragraph (1), the Attorney General may bring

16 a civil action in any United States district court of

17 appropriate jurisdiction for such relief as may be ap18 propriate, including an action—

19 ‘‘(A) to recover the amount of the assistance

20 furnished under this title that was not expended

21 in accordance with this title; or

22 ‘‘(B) for mandatory or injunctive relief.

23 ‘‘(d) REVIEW.—

24 ‘‘(1) IN GENERAL.—If the Director receives no25 tice under subsection (a) of the termination, reduc-
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1 tion, or limitation of payments under this Act, the

2 Director—

3 ‘‘(A) may, not later than 60 days after re4 ceiving such notice, file with the United States

5 Court of Appeals for the Ninth Circuit, or in the

6 United States Court of Appeals for the District

7 of Columbia, a petition for review of the action

8 of the Secretary; and

9 ‘‘(B) upon the filing of any petition under

10 subparagraph (A), shall forthwith transmit cop11 ies of the petition to the Secretary and the Attor12 ney General of the United States, who shall rep13 resent the Secretary in the litigation.

14 ‘‘(2) PROCEDURE.—

15 ‘‘(A) IN GENERAL.—The Secretary shall file

16 in the court a record of the proceeding on which

17 the Secretary based the action, as provided in

18 section 2112 of title 28, United States Code.

19 ‘‘(B) OBJECTIONS.—No objection to the ac20 tion of the Secretary shall be considered by the

21 court unless the Department has registered the

22 objection before the Secretary.

23 ‘‘(3) DISPOSITION.—

24 ‘‘(A) COURT PROCEEDINGS.—
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1 ‘‘(i) JURISDICTION OF COURT.—The

2 court shall have jurisdiction to affirm or

3 modify the action of the Secretary or to set

4 the action aside in whole or in part.

5 ‘‘(ii) FINDINGS OF FACT.—If supported

6 by substantial evidence on the record con7 sidered as a whole, the findings of fact by

8 the Secretary shall be conclusive.

9 ‘‘(iii) ADDITION.—The court may

10 order evidence, in addition to the evidence

11 submitted for review under this subsection,

12 to be taken by the Secretary, and to be

13 made part of the record.

14 ‘‘(B) SECRETARY.—

15 ‘‘(i) IN GENERAL.—The Secretary, by

16 reason of the additional evidence referred to

17 in subparagraph (A) and filed with the

18 court—

19 ‘‘(I) may—

20 ‘‘(aa) modify the findings of

21 fact of the Secretary; or

22 ‘‘(bb) make new findings;

23 and

24 ‘‘(II) shall file—
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1 ‘‘(aa) such modified or new

2 findings; and

3 ‘‘(bb) the recommendation of

4 the Secretary, if any, for the

5 modification or setting aside of

6 the original action of the Sec7 retary.

8 ‘‘(ii) FINDINGS.—The findings referred

9 to in clause (i)(II)(bb) shall, with respect to

10 a question of fact, be considered to be con11 clusive if those findings are—

12 ‘‘(I) supported by substantial evi13 dence on the record; and

14 ‘‘(II) considered as a whole.

15 ‘‘(4) FINALITY.—

16 ‘‘(A) IN GENERAL.—Except as provided in

17 subparagraph (B), upon the filing of the record

18 under this subsection with the court—

19 ‘‘(i) the jurisdiction of the court shall

20 be exclusive; and

21 ‘‘(ii) the judgment of the court shall be

22 final.

23 ‘‘(B) REVIEW BY SUPREME COURT.—A

24 judgment under subparagraph (A) shall be sub25 ject to review by the Supreme Court of the
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1 United States upon writ of certiorari or certifi2 cation, as provided in section 1254 of title 28,

3 United States Code.

4 ‘‘SEC. 819. MONITORING OF COMPLIANCE.

5 ‘‘(a) ENFORCEABLE AGREEMENTS.—

6 ‘‘(1) IN GENERAL.—The Director, through bind7 ing contractual agreements with owners or other au8 thorized entities, shall ensure long-term compliance

9 with the provisions of this title.

10 ‘‘(2) MEASURES.—The measures referred to in

11 paragraph (1) shall provide for—

12 ‘‘(A) to the extent allowable by Federal and

13 State law, the enforcement of the provisions of

14 this title by the Department and the Secretary;

15 and

16 ‘‘(B) remedies for breach of the provisions

17 referred to in paragraph (1).

18 ‘‘(b) PERIODIC MONITORING.—

19 ‘‘(1) IN GENERAL.—Not less frequently than an20 nually, the Director shall review the activities con21 ducted and housing assisted under this title to assess

22 compliance with the requirements of this title.

23 ‘‘(2) REVIEW.—Each review under paragraph

24 (1) shall include onsite inspection of housing to deter25 mine compliance with applicable requirements.
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1 ‘‘(3) RESULTS.—The results of each review under

2 paragraph (1) shall be—

3 ‘‘(A) included in a performance report of

4 the Director submitted to the Secretary under

5 section 820; and

6 ‘‘(B) made available to the public.

7 ‘‘(c) PERFORMANCE MEASURES.—The Secretary shall

8 establish such performance measures as may be necessary

9 to assess compliance with the requirements of this title.

10 ‘‘SEC. 820. PERFORMANCE REPORTS.

11 ‘‘(a) REQUIREMENT.—For each fiscal year, the Direc12 tor shall—

13 ‘‘(1) review the progress the Department has

14 made during that fiscal year in carrying out the

15 housing plan submitted by the Department under sec16 tion 803; and

17 ‘‘(2) submit a report to the Secretary (in a form

18 acceptable to the Secretary) describing the conclusions

19 of the review.

20 ‘‘(b) CONTENT.—Each report submitted under this sec21 tion for a fiscal year shall—

22 ‘‘(1) describe the use of grant amounts provided

23 to the Department of Hawaiian Home Lands for that

24 fiscal year;
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1 ‘‘(2) assess the relationship of the use referred to

2 in paragraph (1) to the goals identified in the hous3 ing plan;

4 ‘‘(3) indicate the programmatic accomplishments

5 of the Department; and

6 ‘‘(4) describe the manner in which the Depart7 ment would change its housing plan submitted under

8 section 803 as a result of its experiences.

9 ‘‘(c) SUBMISSIONS.—The Secretary shall—

10 ‘‘(1) establish a date for submission of each re11 port under this section;

12 ‘‘(2) review each such report; and

13 ‘‘(3) with respect to each such report, make rec14 ommendations as the Secretary considers appropriate

15 to carry out the purposes of this title.

16 ‘‘(d) PUBLIC AVAILABILITY.—

17 ‘‘(1) COMMENTS BY BENEFICIARIES.—In prepar18 ing a report under this section, the Director shall

19 make the report publicly available to the beneficiaries

20 of the Hawaiian Homes Commission Act, 1920 (42

21 Stat. 108 et seq.) and give a sufficient amount of time

22 to permit those beneficiaries to comment on that re23 port before it is submitted to the Secretary (in such

24 manner and at such time as the Director may deter25 mine).
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1 ‘‘(2) SUMMARY OF COMMENTS.—The report shall

2 include a summary of any comments received by the

3 Director from beneficiaries under paragraph (1) re4 garding the program to carry out the housing plan.

5 ‘‘SEC. 821. REVIEW AND AUDIT BY SECRETARY.

6 ‘‘(a) ANNUAL REVIEW.—

7 ‘‘(1) IN GENERAL.—The Secretary shall, not less

8 frequently than on an annual basis, make such re9 views and audits as may be necessary or appropriate

10 to determine whether—

11 ‘‘(A) the Director has—

12 ‘‘(i) carried out eligible activities

13 under this title in a timely manner;

14 ‘‘(ii) carried out and made certifi15 cations in accordance with the requirements

16 and the primary objectives of this title and

17 with other applicable laws; and

18 ‘‘(iii) a continuing capacity to carry

19 out the eligible activities in a timely man20 ner;

21 ‘‘(B) the Director has complied with the

22 housing plan submitted by the Director under

23 section 803; and

24 ‘‘(C) the performance reports of the Depart25 ment under section 821 are accurate.
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1 ‘‘(2) ONSITE VISITS.—Each review conducted

2 under this section shall, to the extent practicable, in3 clude onsite visits by employees of the Department of

4 Housing and Urban Development.

5 ‘‘(b) REPORT BY SECRETARY.—The Secretary shall

6 give the Department of Hawaiian Home Lands not less

7 than 30 days to review and comment on a report under

8 this subsection. After taking into consideration the com9 ments of the Department, the Secretary may revise the re10 port and shall make the comments of the Department and

11 the report with any revisions, readily available to the public

12 not later than 30 days after receipt of the comments of the

13 Department.

14 ‘‘(c) EFFECT OF REVIEWS.—The Secretary may make

15 appropriate adjustments in the amount of annual grants

16 under this title in accordance with the findings of the Sec17 retary pursuant to reviews and audits under this section.

18 The Secretary may adjust, reduce, or withdraw grant

19 amounts, or take other action as appropriate in accordance

20 with the reviews and audits of the Secretary under this sec21 tion, except that grant amounts already expended on afford22 able housing activities may not be recaptured or deducted

23 from future assistance provided to the Department of Ha24 waiian Home Lands.
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1 ‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

2 ‘‘To the extent that the financial transactions of the

3 Department of Hawaiian Home Lands involving grant

4 amounts under this title relate to amounts provided under

5 this title, those transactions may be audited by the Comp6 troller General of the United States under such regulations

7 as may be prescribed by the Comptroller General. The

8 Comptroller General of the United States shall have access

9 to all books, accounts, records, reports, files, and other pa10 pers, things, or property belonging to or in use by the De11 partment of Hawaiian Home Lands pertaining to such fi12 nancial transactions and necessary to facilitate the audit.

13 ‘‘SEC. 823. REPORTS TO CONGRESS.

14 ‘‘(a) IN GENERAL.—Not later than 90 days after the

15 conclusion of each fiscal year in which assistance under this

16 title is made available, the Secretary shall submit to the

17 Congress a report that contains—

18 ‘‘(1) a description of the progress made in ac19 complishing the objectives of this title;

20 ‘‘(2) a summary of the use of funds available

21 under this title during the preceding fiscal year; and

22 ‘‘(3) a description of the aggregate outstanding

23 loan guarantees under section 184A of the Housing

24 and Community Development Act of 1992.

25 ‘‘(b) RELATED REPORTS.—The Secretary may require

26 the Director to submit to the Secretary such reports and
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1 other information as may be necessary in order for the Sec2 retary to prepare the report required under subsection (a).

3 ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘There are authorized to be appropriated to the De5 partment of Housing and Urban Development for grants

6 under this title such sums as may be necessary for each

7 of fiscal years 1999, 2000, 2001, 2002 and 2003.’’.

8 SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUS9 ING.

10 Subtitle E of title I of the Housing and Community

11 Development Act of 1992 is amended by inserting after sec12 tion 184 (12 U.S.C. 1715z–13a) the following:

13 ‘‘SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN

14 HOUSING.

15 ‘‘(a) DEFINITIONS.—In this section:

16 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS.—

17 The term ‘Department of Hawaiian Home Lands’

18 means the agency or department of the government of

19 the State of Hawaii that is responsible for the admin20 istration of the Hawaiian Homes Commission Act,

21 1920 (42 Stat. 108 set seq.).

22 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en23 tity’ means a Native Hawaiian family, the Depart24 ment of Hawaiian Home Lands, the Office of Hawai25 ian Affairs, or private nonprofit or for-profit organi-
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1 zations experienced in the planning and development

2 of affordable housing for Native Hawaiians.

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

4 more persons maintaining a household, as the Sec5 retary shall by regulation provide.

6 ‘‘(4) GUARANTEE FUND.—The term ‘Guarantee

7 Fund’ means the Native Hawaiian Housing Loan

8 Guarantee Fund established under subsection (i) of

9 this section.

10 ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha11 waiian Home Lands’ means lands that—

12 ‘‘(A) have the status of Hawaiian Home

13 Lands under section 204 of the Hawaiian Homes

14 Commission Act (42 Stat. 110); or

15 ‘‘(B) are acquired pursuant to that Act.

16 ‘‘(6) NATIVE HAWAIIAN.—The term ‘Native Ha17 waiian’ has the meaning given the term ‘native Ha18 waiian’ in section 201 of the Hawaiian Homes Com19 mission Act, 1920 (42 Stat. 108 et seq.).

20 ‘‘(7) OFFICE OF HAWAIIAN AFFAIRS.—The term

21 ‘Office of Hawaiian Affairs’ means the entity of that

22 name established under the constitution of the State

23 of Hawaii.

24 ‘‘(b) AUTHORITY.—To provide access to sources of pri25 vate financing to Native Hawaiian families who otherwise
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1 could not acquire housing financing because of the unique

2 legal status of the Hawaiian Home Lands or as a result

3 of a lack of access to private financial markets, the Sec4 retary may guarantee an amount not to exceed 100 percent

5 of the unpaid principal and interest that is due on an eligi6 ble loan under subsection (b).

7 ‘‘(c) ELIGIBLE LOANS.—Under this section, a loan is

8 an eligible loan if that loan meets the following require9 ments:

10 ‘‘(1) ELIGIBLE BORROWERS.—The loan is made

11 only to a borrower who—

12 ‘‘(A) is a Native Hawaiian family;

13 ‘‘(B) the Department of Hawaiian Home

14 Lands;

15 ‘‘(C) the Office of Hawaiian Affairs; or

16 ‘‘(D) a private nonprofit organization expe17 rienced in the planning and development of af18 fordable housing for Native Hawaiians.

19 ‘‘(2) ELIGIBLE HOUSING.—

20 ‘‘(A) IN GENERAL.—The loan will be used

21 to construct, acquire, or rehabilitate not more

22 than 4-family dwellings that are standard hous23 ing and are located on Hawaiian Home Lands

24 for which a housing plan described in subpara25 graph (B) applies.
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1 ‘‘(B) HOUSING PLAN.—A housing plan de2 scribed in this subparagraph is a housing plan

3 that—

4 ‘‘(i) has been submitted and approved

5 by the Secretary under section 803 of the

6 Native American Housing Assistance and

7 Self-Determination Amendments of 1998;

8 and

9 ‘‘(ii) provides for the use of loan guar10 antees under this section to provide afford11 able homeownership housing on Hawaiian

12 Home Lands.

13 ‘‘(3) SECURITY.—The loan may be secured by

14 any collateral authorized under applicable Federal

15 law or State law.

16 ‘‘(4) LENDERS.—

17 ‘‘(A) IN GENERAL.—The loan shall be made

18 only by a lender approved by, and meeting

19 qualifications established by, the Secretary, in20 cluding any lender described in subparagraph

21 (B), except that a loan otherwise insured or

22 guaranteed by an agency of the Federal Govern23 ment or made by the Department of Hawaiian

24 Home Lands from amounts borrowed from the
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1 United States shall not be eligible for a guaran2 tee under this section.

3 ‘‘(B) APPROVAL.—The following lenders

4 shall be considered to be lenders that have been

5 approved by the Secretary:

6 ‘‘(i) Any mortgagee approved by the

7 Secretary for participation in the single

8 family mortgage insurance program under

9 title II of the National Housing Act (12

10 U.S.C.A. 1707 et seq.).

11 ‘‘(ii) Any lender that makes housing

12 loans under chapter 37 of title 38, United

13 States Code, that are automatically guaran14 teed under section 3702(d) of title 38,

15 United States Code.

16 ‘‘(iii) Any lender approved by the Sec17 retary of Agriculture to make guaranteed

18 loans for single family housing under the

19 Housing Act of 1949 (42 U.S.C.A. 1441 et

20 seq.).

21 ‘‘(iv) Any other lender that is super22 vised, approved, regulated, or insured by

23 any agency of the Federal Government.

24 ‘‘(5) TERMS.—The loan shall—
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1 ‘‘(A) be made for a term not exceeding 30

2 years;

3 ‘‘(B) bear interest (exclusive of the guaran4 tee fee under subsection (d) and service charges,

5 if any) at a rate agreed upon by the borrower

6 and the lender and determined by the Secretary

7 to be reasonable, but not to exceed the rate gen8 erally charged in the area (as determined by the

9 Secretary) for home mortgage loans not guaran10 teed or insured by any agency or instrumental11 ity of the Federal Government;

12 ‘‘(C) involve a principal obligation not ex13 ceeding—

14 ‘‘(i) 97.75 percent of the appraised

15 value of the property as of the date the loan

16 is accepted for guarantee (or 98.75 percent

17 if the value of the property is $50,000 or

18 less); or

19 ‘‘(ii) the amount approved by the Sec20 retary under this section; and

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

22 property—

23 ‘‘(i) in cash or its equivalent; or

24 ‘‘(ii) through the value of any improve25 ments to the property made through the
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1 skilled or unskilled labor of the borrower, as

2 the Secretary shall provide.

3 ‘‘(d) CERTIFICATE OF GUARANTEE.—

4 ‘‘(1) APPROVAL PROCESS.—

5 ‘‘(A) IN GENERAL.—Before the Secretary

6 approves any loan for guarantee under this sec7 tion, the lender shall submit the application for

8 the loan to the Secretary for examination.

9 ‘‘(B) APPROVAL.—If the Secretary approves

10 the application submitted under subparagraph

11 (A), the Secretary shall issue a certificate under

12 this subsection as evidence of the loan guarantee

13 approved.

14 ‘‘(2) STANDARD FOR APPROVAL.—The Secretary

15 may approve a loan for guarantee under this section

16 and issue a certificate under this subsection only if

17 the Secretary determines that there is a reasonable

18 prospect of repayment of the loan.

19 ‘‘(3) EFFECT.—

20 ‘‘(A) IN GENERAL.—A certificate of guaran21 tee issued under this subsection by the Secretary

22 shall be conclusive evidence of the eligibility of

23 the loan for guarantee under this section and the

24 amount of that guarantee.
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1 ‘‘(B) EVIDENCE.—The evidence referred to

2 in subparagraph (A) shall be incontestable in the

3 hands of the bearer.

4 ‘‘(C) FULL FAITH AND CREDIT.—The full

5 faith and credit of the United States is pledged

6 to the payment of all amounts agreed to be paid

7 by the Secretary as security for the obligations

8 made by the Secretary under this section.

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

10 subsection may not be construed—

11 ‘‘(A) to preclude the Secretary from estab12 lishing defenses against the original lender based

13 on fraud or material misrepresentation; or

14 ‘‘(B) to bar the Secretary from establishing

15 by regulations that are on the date of issuance

16 or disbursement, whichever is earlier, partial de17 fenses to the amount payable on the guarantee.

18 ‘‘(e) GUARANTEE FEE.—

19 ‘‘(1) IN GENERAL.—The Secretary shall fix and

20 collect a guarantee fee for the guarantee of a loan

21 under this section, which may not exceed the amount

22 equal to 1 percent of the principal obligation of the

23 loan.

24 ‘‘(2) PAYMENT.—The fee under this subsection

25 shall—
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1 ‘‘(A) be paid by the lender at time of

2 issuance of the guarantee; and

3 ‘‘(B) be adequate, in the determination of

4 the Secretary, to cover expenses and probable

5 losses.

6 ‘‘(3) DEPOSIT.—The Secretary shall deposit any

7 fees collected under this subsection in the Native Ha8 waiian Housing Loan Guarantee Fund established

9 under subsection (j).

10 ‘‘(f) LIABILITY UNDER GUARANTEE.—The liability

11 under a guarantee provided under this section shall de12 crease or increase on a pro rata basis according to any de13 crease or increase in the amount of the unpaid obligation

14 under the provisions of the loan agreement involved.

15 ‘‘(g) TRANSFER AND ASSUMPTION.—Notwithstanding

16 any other provision of law, any loan guaranteed under this

17 section, including the security given for the loan, may be

18 sold or assigned by the lender to any financial institution

19 subject to examination and supervision by an agency of the

20 Federal Government or of any State or the District of Co21 lumbia.

22 ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL

23 MONEY PENALTIES.—

24 ‘‘(1) IN GENERAL.—
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1 ‘‘(A) GROUNDS FOR ACTION.—If the Sec2 retary determines that any lender or holder of a

3 guarantee certificate under subsection (c)—

4 ‘‘(i) has failed—

5 ‘‘(I) to maintain adequate ac6 counting records;

7 ‘‘(II) to service adequately loans

8 guaranteed under this section; or

9 ‘‘(III) to exercise proper credit or

10 underwriting judgment; or

11 ‘‘(ii) has engaged in practices other12 wise detrimental to the interest of a bor13 rower or the United States,

14 the Secretary may take action under subpara15 graph (B).

16 ‘‘(B) ACTIONS.—Upon a determination by

17 the Secretary that a holder of a guarantee certifi18 cate under subsection (c) has failed to carry out

19 an activity described in subparagraph (A)(i) or

20 has engaged in practices described in subpara21 graph (A)(ii), the Secretary may—

22 ‘‘(i) refuse, either temporarily or per23 manently, to guarantee any further loans

24 made by such lender or holder;
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1 ‘‘(ii) bar such lender or holder from ac2 quiring additional loans guaranteed under

3 this section; and

4 ‘‘(iii) require that such lender or holder

5 assume not less than 10 percent of any loss

6 on further loans made or held by the lender

7 or holder that are guaranteed under this

8 section.

9 ‘‘(2) CIVIL MONEY PENALTIES FOR INTENTIONAL

10 VIOLATIONS.—

11 ‘‘(A) IN GENERAL.—The Secretary may im12 pose a civil monetary penalty on a lender or

13 holder of a guarantee certificate under subsection

14 (d) if the Secretary determines that the holder or

15 lender has intentionally failed—

16 ‘‘(i) to maintain adequate accounting

17 records;

18 ‘‘(ii) to adequately service loans guar19 anteed under this section; or

20 ‘‘(iii) to exercise proper credit or un21 derwriting judgment.

22 ‘‘(B) PENALTIES.—A civil monetary pen23 alty imposed under this paragraph shall be im24 posed in the manner and be in an amount pro25 vided under section 536 of the National Housing
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1 Act (12 U.S.C.A. 1735f–1) with respect to mort2 gagees and lenders under that Act.

3 ‘‘(3) PAYMENT ON LOANS MADE IN GOOD

4 FAITH.—Notwithstanding paragraphs (1) and (2), if

5 a loan was made in good faith, the Secretary may not

6 refuse to pay a lender or holder of a valid guarantee

7 on that loan, without regard to whether the lender or

8 holder is barred under this subsection.

9 ‘‘(i) PAYMENT UNDER GUARANTEE.—

10 ‘‘(1) LENDER OPTIONS.—

11 ‘‘(A) IN GENERAL.—

12 ‘‘(i) NOTIFICATION.—If a borrower on

13 a loan guaranteed under this section de14 faults on the loan, the holder of the guaran15 tee certificate shall provide written notice of

16 the default to the Secretary.

17 ‘‘(ii) PAYMENT.—Upon providing the

18 notice required under clause (i), the holder

19 of the guarantee certificate shall be entitled

20 to payment under the guarantee (subject to

21 the provisions of this section) and may pro22 ceed to obtain payment in 1 of the following

23 manners:

24 ‘‘(I) FORECLOSURE.—
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1 ‘‘(aa) IN GENERAL.—The

2 holder of the certificate may initi3 ate foreclosure proceedings (after

4 providing written notice of that

5 action to the Secretary).

6 ‘‘(bb) PAYMENT.—Upon a

7 final order by the court authoriz8 ing foreclosure and submission to

9 the Secretary of a claim for pay10 ment under the guarantee, the

11 Secretary shall pay to the holder

12 of the certificate the pro rata por13 tion of the amount guaranteed (as

14 determined pursuant to subsection

15 (f)) plus reasonable fees and ex16 penses as approved by the Sec17 retary.

18 ‘‘(cc) SUBROGATION.—The

19 rights of the Secretary shall be

20 subrogated to the rights of the

21 holder of the guarantee. The hold22 er shall assign the obligation and

23 security to the Secretary.

24 ‘‘(II) NO FORECLOSURE.—
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1 ‘‘(aa) IN GENERAL.—Without

2 seeking foreclosure (or in any case

3 in which a foreclosure proceeding

4 initiated under clause (i) contin5 ues for a period in excess of 1

6 year), the holder of the guarantee

7 may submit to the Secretary a re8 quest to assign the obligation and

9 security interest to the Secretary

10 in return for payment of the

11 claim under the guarantee. The

12 Secretary may accept assignment

13 of the loan if the Secretary deter14 mines that the assignment is in

15 the best interest of the United

16 States.

17 ‘‘(bb) PAYMENT.—Upon as18 signment, the Secretary shall pay

19 to the holder of the guarantee the

20 pro rata portion of the amount

21 guaranteed (as determined under

22 subsection (f)).

23 ‘‘(cc) SUBROGATION.—The

24 rights of the Secretary shall be

25 subrogated to the rights of the
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1 holder of the guarantee. The hold2 er shall assign the obligation and

3 security to the Secretary.

4 ‘‘(B) REQUIREMENTS.—Before any pay5 ment under a guarantee is made under subpara6 graph (A), the holder of the guarantee shall ex7 haust all reasonable possibilities of collection.

8 Upon payment, in whole or in part, to the hold9 er, the note or judgment evidencing the debt shall

10 be assigned to the United States and the holder

11 shall have no further claim against the borrower

12 or the United States. The Secretary shall then

13 take such action to collect as the Secretary deter14 mines to be appropriate.

15 ‘‘(2) LIMITATIONS ON LIQUIDATION.—

16 ‘‘(A) IN GENERAL.—If a borrower defaults

17 on a loan guaranteed under this section that in18 volves a security interest in restricted Hawaiian

19 Home Land property, the mortgagee or the Sec20 retary shall only pursue liquidation after offer21 ing to transfer the account to another eligible

22 Hawaiian family or to the Department of Ha23 waiian Home Lands.

24 ‘‘(B) LIMITATION.—If, after action is taken

25 under subparagraph (A), the mortgagee or the
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1 Secretary subsequently proceeds to liquidate the

2 account, the mortgagee or the Secretary shall not

3 sell, transfer, or otherwise dispose of or alienate

4 the property described in subparagraph (A) ex5 cept to another eligible Hawaiian family or to

6 the Department of Hawaiian Home Lands.

7 ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE FUND.—

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

9 the Treasury of the United States the Hawaiian

10 Housing Loan Guarantee Fund for the purpose of

11 providing loan guarantees under this section.

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

13 credited with—

14 ‘‘(A) any amount, claims, notes, mortgages,

15 contracts, and property acquired by the Sec16 retary under this section, and any collections

17 and proceeds therefrom;

18 ‘‘(B) any amounts appropriated pursuant

19 to paragraph (7);

20 ‘‘(C) any guarantee fees collected under sub21 section (d); and

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

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

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

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

6 this section, including the costs (as that term is

7 defined in section 502 of the Federal Credit Re8 form Act of 1990 (2 U.S.C. 661a)) of such loans;

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

10 expenses necessary to make fiscal adjustment in

11 connection with the application and transmittal

12 of collections, and other expenses and advances to

13 protect the Secretary for loans which are guaran14 teed under this section or held by the Secretary;

15 ‘‘(C) acquiring such security property at

16 foreclosure sales or otherwise;

17 ‘‘(D) paying administrative expenses in

18 connection with this section; and

19 ‘‘(E) reasonable and necessary costs of reha20 bilitation and repair to properties that the Sec21 retary holds or owns pursuant to this section.

22 ‘‘(4) INVESTMENT.—Any amounts in the Guar23 antee Fund determined by the Secretary to be in ex24 cess of amounts currently required at the time of the
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1 determination to carry out this section may be in2 vested in obligations of the United States.

3 ‘‘(5) LIMITATION ON COMMITMENTS TO GUARAN4 TEE LOANS AND MORTGAGES.—

5 ‘‘(A) REQUIREMENT OF APPROPRIATIONS.—

6 The authority of the Secretary to enter into com7 mitments to guarantee loans under this section

8 shall be effective for any fiscal year to the extent,

9 or in such amounts as, are or have been provided

10 in appropriations Acts, without regard to the fis11 cal year for which such amounts were appro12 priated.

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

15 into commitments to guarantee loans under this

16 section shall be effective for any fiscal year only

17 to the extent that amounts in the Guarantee

18 Fund are or have been made available in appro19 priations Acts to cover the costs (as that term is

20 defined in section 502 of the Federal Credit Re21 form Act of 1990 (2 U.S.C. 661a)) of such loan

22 guarantees for such fiscal year. Any amounts ap23 propriated pursuant to this subparagraph shall

24 remain available until expended.
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1 ‘‘(C) LIMITATION ON OUTSTANDING AGGRE2 GATE PRINCIPAL AMOUNT.—Subject to the limi3 tations in subparagraphs (A) and (B), the Sec4 retary may enter into commitments to guarantee

5 loans under this section for each of fiscal years

6 1999, 2000, 2001, 2002, and 2003 with an ag7 gregate outstanding principal amount not ex8 ceeding $100,000,000 for each such fiscal year.

9 ‘‘(6) LIABILITIES.—All liabilities and obligations

10 of the assets credited to the Guarantee Fund under

11 paragraph (2)(A) shall be liabilities and obligations

12 of the Guarantee Fund.

13 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

14 There are authorized to be appropriated to the Guar15 antee Fund to carry out this section such sums as

16 may be necessary for each of fiscal years 1999, 2000,

17 2001, 2002, and 2003.

18 ‘‘(k) REQUIREMENTS FOR STANDARD HOUSING.—

19 ‘‘(1) IN GENERAL.—The Secretary shall, by regu20 lation, establish housing safety and quality standards

21 to be applied for use under this section.

22 ‘‘(2) STANDARDS.—The standards referred to in

23 paragraph (1) shall—

24 ‘‘(A) provide sufficient flexibility to permit

25 the use of various designs and materials in hous-
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1 ing acquired with loans guaranteed under this

2 section; and

3 ‘‘(B) require each dwelling unit in any

4 housing acquired in the manner described in

5 subparagraph (A) to—

6 ‘‘(i) be decent, safe, sanitary, and mod7 est in size and design;

8 ‘‘(ii) conform with applicable general

9 construction standards for the region in

10 which the housing is located;

11 ‘‘(iii) contain a plumbing system

12 that—

13 ‘‘(I) uses a properly installed sys14 tem of piping;

15 ‘‘(II) includes a kitchen sink and

16 a partitional bathroom with lavatory,

17 toilet, and bath or shower; and

18 ‘‘(III) uses water supply, plumb19 ing, and sewage disposal systems that

20 conform to any minimum standards

21 established by the applicable county or

22 State;

23 ‘‘(iv) contain an electrical system

24 using wiring and equipment properly in25 stalled to safely supply electrical energy for
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1 adequate lighting and for operation of ap2 pliances that conforms to any appropriate

3 county, State, or national code;

4 ‘‘(v) be not less than the size provided

5 under the applicable locally adopted stand6 ards for size of dwelling units, except that

7 the Secretary, upon request of the Depart8 ment of Hawaiian Home Lands may waive

9 the size requirements under this paragraph;

10 and

11 ‘‘(vi) conform with the energy perform12 ance requirements for new construction es13 tablished by the Secretary under section

14 526(a) of the National Housing Act (12

15 U.S.C.A. 1735f–4), unless the Secretary de16 termines that the requirements are not ap17 plicable.

18 ‘‘(l) APPLICABILITY OF CIVIL RIGHTS STATUTES.—To

19 the extent that the requirements of title VI of the Civil

20 Rights Act of 1964 (42 U.S.C. 2000d et seq.) or of title VIII

21 of the Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.)

22 apply to a guarantee provided under this subsection, noth23 ing in the requirements concerning discrimination on the

24 basis of race shall be construed to prevent the provision of

25 the guarantee to an eligible entity on the basis that the en-
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1 tity serves Native Hawaiian families or is a Native Hawai2 ian family.’’.