IIB

106TH CONGRESS

2D SESSION H. R. 1776

IN THE SENATE OF THE UNITED STATES

APRIL 7, 2000

Received; read twice and referred to the Committee on Banking, Housing, and

Urban Affairs

AN ACT

To expand homeownership in the United States.

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 AND TABLE OF CONTENTS.

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

5 ‘‘American Homeownership and Economic Opportunity

6 Act of 2000’’.

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

8 this Act is as follows:
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Sec. 1. Short title and table of contents.

Sec. 2. Findings and purpose.

TITLE I—REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

Sec. 101. Short title.

Sec. 102. Housing impact analysis.

Sec. 103. Grants for regulatory barrier removal strategies.

Sec. 104. Eligibility for community development block grants.

Sec. 105. Regulatory barriers clearinghouse.

TITLE II—HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE

AND LOAN GUARANTEES

Sec. 201. Extension of loan term for manufactured home lots.

Sec. 202. Downpayment simplification.

Sec. 203. Reduced downpayment requirements for loans for teachers and uniformed municipal employees.

Sec. 204. Preventing fraud in rehabilitation loan program.

Sec. 205. Community partners next door program.

Sec. 206. Risk-sharing demonstration.

Sec. 207. Hybrid ARMs.

Sec. 208. Home equity conversion mortgages.

Sec. 209. Law enforcement officer homeownership pilot program.

Sec. 210. Study of mandatory inspection requirement under single family housing mortgage insurance program.

Sec. 211. Report on title I home improvement loan program.

Sec. 212. Sense of the Congress regarding making properties available for

homeownership programs.

Sec. 213. Property improvement loan limit for single-family homes.

TITLE III—SECTION 8 HOMEOWNERSHIP OPTION

Sec. 301. Downpayment assistance.

Sec. 302. Pilot program for homeownership assistance for disabled families.

Sec. 303. Funding for pilot programs.

TITLE IV—COMMUNITY DEVELOPMENT BLOCK GRANTS

Sec. 401. Reauthorization.

Sec. 402. Prohibition of set-asides.

Sec. 403. Public services cap.

Sec. 404. Homeownership for municipal employees.

Sec. 405. Technical amendment relating to brownfields.

Sec. 406. Income eligibility.

Sec. 407. Housing opportunities for persons with AIDS.

Sec. 408. Prohibition on use of amounts to acquire church property.

Sec. 409. CDBG special purpose grants.

TITLE V—HOME INVESTMENT PARTNERSHIPS PROGRAM

Sec. 501. Reauthorization.

Sec. 502. Eligibility of limited equity cooperatives and mutual housing associations.

Sec. 503. Administrative costs.

Sec. 504. Leveraging affordable housing investment through local loan pools.

Sec. 505. Homeownership for municipal employees.
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Sec. 506. Use of section 8 assistance by ‘‘grand-families’’ to rent dwelling units

in assisted projects.

Sec. 507. Loan guarantees.

Sec. 508. Downpayment assistance for 2- and 3-family residences.

TITLE VI—LOCAL HOMEOWNERSHIP INITIATIVES

Sec. 601. Reauthorization of Neighborhood Reinvestment Corporation.

Sec. 602. Homeownership zones.

Sec. 603. Lease-to-own.

Sec. 604. Local capacity building.

Sec. 605. Consolidated application and planning requirement and super-NOFA.

Sec. 606. Assistance for self-help housing providers.

Sec. 607. Housing counseling organizations.

Sec. 608. Community lead information centers and lead-safe housing.

Sec. 609. Grant eligibility of community organizations.

TITLE VII—NATIVE AMERICAN HOMEOWNERSHIP

Subtitle A—Native American Housing

Sec. 701. Lands title report commission.

Sec. 702. Loan guarantees.

Sec. 703. Native American housing assistance.

Subtitle B—Native Hawaiian Housing

Sec. 721. Short title.

Sec. 722. Findings.

Sec. 723. Housing assistance.

Sec. 724. Loan guarantees.

TITLE VIII—TRANSFER OF HUD-HELD HOUSING TO LOCAL

GOVERNMENTS AND NONPROFIT ORGANIZATIONS

Sec. 801. Transfer of unoccupied and substandard HUD-held housing to local

governments and community development corporations.

Sec. 802. Transfer of HUD assets in revitalization areas.

TITLE IX—PRIVATE MORTGAGE INSURANCE CANCELLATION AND

TERMINATION

Sec. 901. Short title.

Sec. 902. Changes in amortization schedule.

Sec. 903. Deletion of ambiguous references to residential mortgages.

Sec. 904. Cancellation rights after cancellation date.

Sec. 905. Clarification of cancellation and termination issues and lender paid

mortgage insurance disclosure requirements.

Sec. 906. Definitions.

TITLE X—RURAL HOUSING HOMEOWNERSHIP

Sec. 1001. Promissory note requirement under housing repair loan program.

Sec. 1002. Limited partnership eligibility for farm labor housing loans.

Sec. 1003. Project accounting records and practices.

Sec. 1004. Definition of rural area.

Sec. 1005. Operating assistance for migrant farmworkers projects.

Sec. 1006. Multifamily rental housing loan guarantee program.
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Sec. 1007. Enforcement provisions.

Sec. 1008. Amendments to title 18 of United States Code.

TITLE XI—MANUFACTURED HOUSING IMPROVEMENT

Sec. 1101. Short title and references.

Sec. 1102. Findings and purposes.

Sec. 1103. Definitions.

Sec. 1104. Federal manufactured home construction and safety standards.

Sec. 1105. Abolishment of National Manufactured Home Advisory Council;

manufactured home installation.

Sec. 1106. Public information.

Sec. 1107. Research, testing, development, and training.

Sec. 1108. Prohibited acts.

Sec. 1109. Dispute resolution.

Sec. 1110. Elimination of annual report requirement.

Sec. 1111. Effective date.

Sec. 1112. Savings provision.

TITLE XII—PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION

PROGRAM

Sec. 1201. Eligible public housing agencies.

1 SEC. 2. FINDINGS AND PURPOSE.

2 (a) FINDINGS.—The Congress finds that—

3 (1) the priorities of our Nation should include

4 expanding homeownership opportunities by providing

5 access to affordable housing that is safe, clean, and

6 healthy;

7 (2) our Nation has an abundance of conven8 tional capital sources available for homeownership fi9 nancing;

10 (3) experience with local homeownership pro11 grams has shown that if flexible capital sources are

12 available, communities possess ample will and cre13 ativity to provide opportunities uniquely designed to

14 assist their citizens in realizing the American dream

15 of homeownership; and
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1 (4) each consumer should be afforded every rea2 sonable opportunity to access mortgage credit, to ob3 tain the lowest cost mortgages for which the con4 sumer can qualify, to know the true cost of the

5 mortgage, to be free of regulatory burdens, and to

6 know what factors underlie a lender’s decision re7 garding the consumer’s mortgage.

8 (b) PURPOSE.—It is the purpose of this Act—

9 (1) to encourage and facilitate homeownership

10 by families in the United States who are not other11 wise able to afford homeownership; and

12 (2) to expand homeownership through policies

13 that—

14 (A) promote the ability of the private sec15 tor to produce affordable housing without exces16 sive government regulation;

17 (B) encourage tax incentives, such as the

18 mortgage interest deduction, at all levels of gov19 ernment; and

20 (C) facilitate the availability of flexible

21 capital for homeownership opportunities and

22 provide local governments with increased flexi23 bility under existing Federal programs to facili24 tate homeownership.
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1 TITLE I—REMOVAL OF BAR2 RIERS TO HOUSING AFFORD3 ABILITY

4 SEC. 101. SHORT TITLE.

5 This title may be cited as the ‘‘Housing Affordability

6 Barrier Removal Act of 2000’’.

7 SEC. 102. HOUSING IMPACT ANALYSIS.

8 (a) APPLICABILITY.—Except as provided in sub9 section (b), the requirements of this section shall apply

10 with respect to—

11 (1) any proposed rule, unless the agency pro12 mulgating the rule—

13 (A) has certified that the proposed rule

14 will not, if given force or effect as a final rule,

15 have a significant deleterious impact on housing

16 affordability; and

17 (B) has caused such certification to be

18 published in the Federal Register at the time of

19 publication of general notice of proposed rule20 making for the rule, together with a statement

21 providing the factual basis for the certification;

22 and

23 (2) any final rule, unless the agency promul24 gating the rule—
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1 (A) has certified that the rule will not, if

2 given force or effect, have a significant delete3 rious impact on housing affordability; and

4 (B) has caused such certification to be

5 published in the Federal Register at the time of

6 publication of the final rule, together with a

7 statement providing the factual basis for the

8 certification.

9 Any agency making a certification under this subsection

10 shall provide a copy of such certification and the state11 ment providing the factual basis for the certification to

12 the Secretary of Housing and Urban Development.

13 (b) EXCEPTION FOR CERTAIN BANKING RULES.—

14 The requirements of this section shall not apply to any

15 proposed or final rule relating to—

16 (1) the operations, safety, or soundness of—

17 (A) federally insured depository institu18 tions or any affiliate of such an institution (as

19 such term is defined in section 2(k) of the Bank

20 Holding Company Act of 1956 (12 U.S.C.

21 1841(k));

22 (B) credit unions;

23 (C) the Federal home loan banks;

24 (D) the enterprises (as such term is de25 fined in section 1303 of the Housing and Com-
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1 munity Development Act of 1992 (12 U.S.C.

2 4502);

3 (E) a Farm Credit System institution; or

4 (F) foreign banks or their branches, agen5 cies, commercial lending companies, or rep6 resentative offices that operate in the United

7 States, or any affiliate of a foreign bank (as

8 such terms are defined in section 1 of the Inter9 national Banking Act of 1978 (12 U.S.C.

10 3101); or

11 (2) the payments system or the protection of

12 deposit insurance funds or the Farm Credit Insur13 ance Fund.

14 (c) STATEMENT OF PROPOSED RULEMAKING.—

15 Whenever an agency publishes general notice of proposed

16 rulemaking for any proposed rule, unless the agency has

17 made a certification under subsection (a), the agency

18 shall—

19 (1) in the notice of proposed rulemaking—

20 (A) state with particularity the text of the

21 proposed rule; and

22 (B) request any interested persons to sub23 mit to the agency any written analyses, data,

24 views, and arguments, and any specific alter25 natives to the proposed rule that—
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1 (i) accomplish the stated objectives of

2 the applicable statutes, in a manner com3 parable to the proposed rule;

4 (ii) result in costs to the Federal Gov5 ernment equal to or less than the costs re6 sulting from the proposed rule; and

7 (iii) result in housing affordability

8 greater than the housing affordability re9 sulting from the proposed rule;

10 (2) provide an opportunity for interested per11 sons to take the actions specified under paragraph

12 (1)(B) before promulgation of the final rule; and

13 (3) prepare and make available for public com14 ment an initial housing impact analysis in accord15 ance with the requirements of subsection (d).

16 (d) INITIAL HOUSING IMPACT ANALYSIS.—

17 (1) REQUIREMENTS.—Each initial housing im18 pact analysis shall describe the impact of the pro19 posed rule on housing affordability. The initial hous20 ing impact analysis or a summary shall be published

21 in the Federal Register at the same time as, and to22 gether with, the publication of general notice of pro23 posed rulemaking for the rule. The agency shall

24 transmit a copy of the initial housing impact anal-
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1 ysis to the Secretary of Housing and Urban Devel2 opment.

3 (2) MONTHLY HUD LISTING.—On a monthly

4 basis, the Secretary of Housing and Urban Develop5 ment shall cause to be published in the Federal Reg6 ister, and shall make available through a World

7 Wide Web site of the Department, a listing of all

8 proposed rules for which an initial housing impact

9 analysis was prepared during the preceding month.

10 (3) CONTENTS.—Each initial housing impact

11 analysis required under this subsection shall

12 contain—

13 (A) a description of the reasons why action

14 by the agency is being considered;

15 (B) a succinct statement of the objectives

16 of, and legal basis for, the proposed rule;

17 (C) a description of and, where feasible, an

18 estimate of the extent to which the proposed

19 rule would increase the cost or reduce the sup20 ply of housing or land for residential develop21 ment; and

22 (D) an identification, to the extent prac23 ticable, of all relevant Federal rules which may

24 duplicate, overlap, or conflict with the proposed

25 rule.
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1 (e) PROPOSAL OF LESS DELETERIOUS ALTERNATIVE

2 RULE.—

3 (1) ANALYSIS.—The agency publishing a gen4 eral notice of proposed rulemaking shall review any

5 specific analyses and alternatives to the proposed

6 rule which have been submitted to the agency pursu7 ant to subsection (c)(2) to determine whether any al8 ternative to the proposed rule—

9 (A) accomplishes the stated objectives of

10 the applicable statutes, in a manner comparable

11 to the proposed rule;

12 (B) results in costs to the Federal Govern13 ment equal to or less than the costs resulting

14 from the proposed rule; and

15 (C) results in housing affordability greater

16 than the housing affordability resulting from

17 the proposed rule.

18 (2) NEW NOTICE OF PROPOSED RULE19 MAKING.—If the agency determines that an alter20 native to the proposed rule meets the requirements

21 under subparagraphs (A) through (C) of paragraph

22 (1), unless the agency provides an explanation on

23 the record for the proposed rule as to why the alter24 native should not be implemented, the agency shall

25 incorporate the alternative into the final rule or, at
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1 the agency’s discretion, issue a new proposed rule

2 which incorporates the alternative.

3 (f) FINAL HOUSING IMPACT ANALYSIS.—

4 (1) REQUIREMENT.—Whenever an agency pro5 mulgates a final rule after publication of a general

6 notice of proposed rulemaking, unless the agency has

7 made the certification under subsection (a), the

8 agency shall prepare a final housing impact analysis.

9 (2) CONTENTS.—Each final housing impact

10 analysis shall contain—

11 (A) a succinct statement of the need for,

12 and objectives of, the rule;

13 (B) a summary of the significant issues

14 raised during the public comment period in re15 sponse to the initial housing impact analysis, a

16 summary of the assessment of the agency of

17 such issues, and a statement of any changes

18 made in the proposed rule as a result of such

19 comments; and

20 (C) a description of and an estimate of the

21 extent to which the rule will impact housing af22 fordability or an explanation of why no such es23 timate is available.

24 (3) AVAILABILITY.—The agency shall make

25 copies of the final housing impact analysis available
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1 to members of the public and shall publish in the

2 Federal Register such analysis or a summary there3 of.

4 (g) AVOIDANCE OF DUPLICATIVE OR UNNECESSARY

5 ANALYSES.—

6 (1) DUPLICATION.—Any Federal agency may

7 perform the analyses required by subsections (d) and

8 (f) in conjunction with or as a part of any other

9 agenda or analysis required by any other law, execu10 tive order, directive, or rule if such other analysis

11 satisfies the provisions of such subsections.

12 (2) JOINDER.—In order to avoid duplicative ac13 tion, an agency may consider a series of closely re14 lated rules as one rule for the purposes of sub15 sections (d) and (f).

16 (h) PREPARATION OF ANALYSES.—In complying with

17 the provisions of subsections (d) and (f), an agency may

18 provide either a quantifiable or numerical description of

19 the effects of a proposed rule or alternatives to the pro20 posed rule, or more general descriptive statements if quan21 tification is not practicable or reliable.

22 (i) EFFECT ON OTHER LAW.—The requirements of

23 subsections (d) and (f) do not alter in any manner stand24 ards otherwise applicable by law to agency action.
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1 (j) PROCEDURE FOR WAIVER OR DELAY OF COMPLE2 TION.—

3 (1) INITIAL HOUSING IMPACT ANALYSIS.—An

4 agency head may waive or delay the completion of

5 some or all of the requirements of subsection (d) by

6 publishing in the Federal Register, not later than

7 the date of publication of the final rule, a written

8 finding, with reasons therefor, that the final rule is

9 being promulgated in response to an emergency that

10 makes compliance or timely compliance with the pro11 visions of subsection (a) impracticable.

12 (2) FINAL HOUSING IMPACT ANALYSIS.—An

13 agency head may not waive the requirements of sub14 section (f). An agency head may delay the comple15 tion of the requirements of subsection (f) for a pe16 riod of not more than 180 days after the date of

17 publication in the Federal Register of a final rule by

18 publishing in the Federal Register, not later than

19 such date of publication, a written finding, with rea20 sons therefor, that the final rule is being promul21 gated in response to an emergency that makes time22 ly compliance with the provisions of subsection (f)

23 impracticable. If the agency has not prepared a final

24 housing impact analysis pursuant to subsection (f)

25 within 180 days from the date of publication of the
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1 final rule, such rule shall lapse and have no force or

2 effect. Such rule shall not be repromulgated until a

3 final housing impact analysis has been completed by

4 the agency.

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

6 following definitions shall apply:

7 (1) HOUSING AFFORDABILITY.—The term

8 ‘‘housing affordability’’ means the quantity of hous9 ing that is affordable to families having incomes that

10 do not exceed 150 percent of the median income of

11 families in the area in which the housing is located,

12 with adjustments for smaller and larger families.

13 For purposes of this paragraph, area, median family

14 income for an area, and adjustments for family size

15 shall be determined in the same manner as such fac16 tors are determined for purposes of section 3(b)(2)

17 of the United States Housing Act of 1937.

18 (2) AGENCY.—The term ‘‘agency’’ means each

19 authority of the Government of the United States,

20 whether or not it is within or subject to review by

21 another agency, but does not include—

22 (A) the Congress;

23 (B) the courts of the United States;

24 (C) the governments of the territories or

25 possessions of the United States;
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1 (D) the government of the District of Co2 lumbia;

3 (E) agencies composed of representatives

4 of the parties or of representatives of organiza5 tions of the parties to the disputes determined

6 by them;

7 (F) courts-martial and military commis8 sions;

9 (G) military authority exercised in the field

10 in time of war or in occupied territory; or

11 (H) functions conferred by—

12 (i) sections 1738, 1739, 1743, and

13 1744 of title 12, United States Code;

14 (ii) chapter 2 of title 41, United

15 States Code;

16 (iii) subchapter II of chapter 471 of

17 title 49, United States Code; or

18 (iv) sections 1884, 1891–1902, and

19 former section 1641(b)(2), of title 50, ap20 pendix, United States Code.

21 (3) FAMILIES.—The term ‘‘families’’ has the

22 meaning given such term in section 3 of the United

23 States Housing Act of 1937.

24 (4) RULE.—The term ‘‘rule’’ means any rule

25 for which the agency publishes a general notice of
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1 proposed rulemaking pursuant to section 553(b) of

2 title 5, United States Code, or any other law, includ3 ing any rule of general applicability governing grants

4 by an agency to State and local governments for

5 which the agency provides an opportunity for notice

6 and public comment; except that such term does not

7 include a rule of particular applicability relating to

8 rates, wages, corporate or financial structures or re9 organizations thereof, prices, facilities, appliances,

10 services, or allowances therefor or to valuations,

11 costs or accounting, or practices relating to such

12 rates, wages, structures, prices, appliances, services,

13 or allowances.

14 (5) SIGNIFICANT.—The term ‘‘significant’’

15 means increasing consumers’ cost of housing by

16 more than $100,000,000 per year.

17 (l) DEVELOPMENT.—Not later than 1 year after the

18 date of the enactment of this title, the Secretary of Hous19 ing and Urban Development shall develop model initial

20 and final housing impact analyses under this section and

21 shall cause such model analyses to be published in the

22 Federal Register. The model analyses shall define the pri23 mary elements of a housing impact analysis to instruct

24 other agencies on how to carry out and develop the anal25 yses required under subsections (a) and (d).
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1 (m) JUDICIAL REVIEW.—

2 (1) DETERMINATION BY AGENCY.—Except as

3 otherwise provided in paragraph (2), any determina4 tion by an agency concerning the applicability of any

5 of the provisions of this title to any action of the

6 agency shall not be subject to judicial review.

7 (2) OTHER ACTIONS BY AGENCY.—Any housing

8 impact analysis prepared under subsection (d) or (f)

9 and the compliance or noncompliance of the agency

10 with the provisions of this title shall not be subject

11 to judicial review. When an action for judicial review

12 of a rule is instituted, any housing impact analysis

13 for such rule shall constitute part of the whole

14 record of agency action in connection with the re15 view.

16 (3) EXCEPTION.—Nothing in this subsection

17 bars judicial review of any other impact statement or

18 similar analysis required by any other law if judicial

19 review of such statement or analysis is otherwise

20 provided by law.

21 SEC. 103. GRANTS FOR REGULATORY BARRIER REMOVAL

22 STRATEGIES.

23 (a) AUTHORIZATION OF APPROPRIATIONS.—Sub24 section (a) of section 1204 of the Housing and Community
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1 Development Act of 1992 (42 U.S.C. 12705c(a)) is

2 amended to read as follows:

3 ‘‘(a) FUNDING.—There is authorized to be appro4 priated for grants under subsections (b) and (c)

5 $15,000,000 for fiscal year 2001 and such sums as may

6 be necessary for each of fiscal years 2002, 2003, 2004,

7 and 2005.’’.

8 (b) CONSOLIDATION OF STATE AND LOCAL

9 GRANTS.—Subsection (b) of section 1204 of the Housing

10 and Community Development Act of 1992 (42 U.S.C.

11 12705c(b)) is amended—

12 (1) in the subsection heading, by striking

13 ‘‘STATE GRANTS’’ and inserting ‘‘GRANT AUTHOR14 ITY’’;

15 (2) in the matter preceding paragraph (1), by

16 inserting after ‘‘States’’ the following: ‘‘and units of

17 general local government (including consortia of

18 such governments)’’;

19 (3) in paragraph (3), by striking ‘‘a State pro20 gram to reduce State and local’’ and inserting

21 ‘‘State, local, or regional programs to reduce’’;

22 (4) in paragraph (4), by inserting ‘‘or local’’

23 after ‘‘State’’; and

24 (5) in paragraph (5), by striking ‘‘State’’.
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1 (c) REPEAL OF LOCAL GRANTS PROVISION.—Section

2 1204 of the Housing and Community Development Act

3 of 1992 (42 U.S.C. 12705c) is amended by striking sub4 section (c).

5 (d) APPLICATION AND SELECTION.—The last sen6 tence of section 1204(e) of the Housing and Community

7 Development Act of 1992 (42 U.S.C. 12705c(e)) is

8 amended—

9 (1) by striking ‘‘and for the selection of units

10 of general local government to receive grants under

11 subsection (f)(2)’’; and

12 (2) by inserting before the period at the end the

13 following: ‘‘and such criteria shall require that grant

14 amounts be used in a manner consistent with the

15 strategy contained in the comprehensive housing af16 fordability strategy for the jurisdiction pursuant to

17 section 105(b)(4) of the Cranston-Gonzalez National

18 Affordable Housing Act’’.

19 (e) SELECTION OF GRANTEES.—Subsection (f) of

20 section 1204 of the Housing and Community Development

21 Act of 1992 (42 U.S.C. 12705c(f)) is amended to read

22 as follows:

23 ‘‘(f) SELECTION OF GRANTEES.—To the extent

24 amounts are made available to carry out this section, the

25 Secretary shall provide grants on a competitive basis to
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1 eligible grantees based on the proposed uses of such

2 amounts, as provided in applications under subsection

3 (e).’’.

4 (f) TECHNICAL AMENDMENTS.—Section 107(a)(1) of

5 the Housing and Community Development Act of 1974

6 (42 U.S.C. 5307(a)(1)) is amended—

7 (1) in subparagraph (G), by inserting ‘‘and’’

8 after the semicolon at the end;

9 (2) by striking subparagraph (H); and

10 (3) by redesignating subparagraph (I) as sub11 paragraph (H).

12 SEC. 104. ELIGIBILITY FOR COMMUNITY DEVELOPMENT

13 BLOCK GRANTS.

14 (a) IN GENERAL.—Section 104(c)(1) of the Housing

15 and Community Development Act of 1974 (42 U.S.C.

16 5304(c)(1)) is amended by inserting before the comma the

17 following: ‘‘, which shall include making a good faith effort

18 to carry out the strategy established under section

19 105(b)(4) of such Act by the unit of general local govern20 ment to remove barriers to affordable housing’’.

21 (b) RULE OF CONSTRUCTION.—The amendment

22 made by subsection (a) may not be construed to create

23 any new private right of action.
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1 SEC. 105. REGULATORY BARRIERS CLEARINGHOUSE.

2 Section 1205 of the Housing and Community Devel3 opment Act of 1992 (42 U.S.C. 12705d) is amended—

4 (1) in subsection (a)—

5 (A) in the matter preceding paragraph (1),

6 by striking ‘‘receive, collect, process, and assem7 ble’’ and inserting ‘‘serve as a national reposi8 tory to receive, collect, process, assemble, and

9 disseminate’’;

10 (B) in paragraph (1)—

11 (i) by striking ‘‘, including’’ and in12 serting ‘‘(including’’; and

13 (ii) by inserting before the semicolon

14 at the end the following: ‘‘), and the preva15 lence and effects on affordable housing of

16 such laws, regulations, and policies’’;

17 (C) in paragraph (2), by inserting before

18 the semicolon the following: ‘‘, including par19 ticularly innovative or successful activities,

20 strategies, and plans’’; and

21 (D) in paragraph (3), by inserting before

22 the period at the end the following: ‘‘, including

23 particularly innovative or successful strategies,

24 activities, and plans’’;

25 (2) in subsection (b)—
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1 (A) in paragraph (1), by striking ‘‘and’’ at

2 the end;

3 (B) in paragraph (2), by striking the pe4 riod at the end and inserting ‘‘; and’’; and

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

6 paragraph:

7 ‘‘(3) by making available through a World Wide

8 Web site of the Department, by electronic mail, or

9 otherwise, provide to each housing agency of a unit

10 of general local government that serves an area hav11 ing a population greater than 100,000, an index of

12 all State and local strategies and plans submitted

13 under subsection (a) to the clearinghouse, which—

14 ‘‘(A) shall describe the types of barriers to

15 affordable housing that the strategy or plan

16 was designed to ameliorate or remove; and

17 ‘‘(B) shall, not later than 30 days after

18 submission to the clearinghouse of any new

19 strategy or plan, be updated to include the new

20 strategy or plan submitted.’’; and

21 (3) by adding at the end the following new sub22 sections:

23 ‘‘(c) ORGANIZATION.—The clearinghouse under this

24 section shall be established within the Office of Policy De25 velopment of the Department of Housing and Urban De-
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1 velopment and shall be under the direction of the Assist2 ant Secretary for Policy Development and Research.

3 ‘‘(d) TIMING.—The clearinghouse under this section

4 (as amended by section 105 of the Housing Affordability

5 Barrier Removal Act of 2000) shall be established and

6 commence carrying out the functions of the clearinghouse

7 under this section not later than 1 year after the date of

8 the enactment of such Act. The Secretary of Housing and

9 Urban Development may comply with the requirements

10 under this section by reestablishing the clearinghouse that

11 was originally established to comply with this section and

12 updating and improving such clearinghouse to the extent

13 necessary to comply with the requirements of this section

14 as in effect pursuant to the enactment of such Act.’’.

15 TITLE II—HOMEOWNERSHIP

16 THROUGH MORTGAGE INSUR17 ANCE AND LOAN GUARAN18 TEES

19 SEC. 201. EXTENSION OF LOAN TERM FOR MANUFACTURED

20 HOME LOTS.

21 Section 2(b)(3)(E) of the National Housing Act (12

22 U.S.C. 1703(b)(3)(E)) is amended by striking ‘‘fifteen’’

23 and inserting ‘‘twenty’’.
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1 SEC. 202. DOWNPAYMENT SIMPLIFICATION.

2 (a) IN GENERAL.—Section 203(b) of the National

3 Housing Act (12 U.S.C. 1709(b)) is amended—

4 (1) in paragraph (2)—

5 (A) in subparagraph (A), by realigning the

6 matter that precedes clause (ii) an additional 2

7 ems from the left margin;

8 (B) in the matter that follows subpara9 graph (B)(iii)—

10 (i) by striking the sixth sentence (re11 lating to the increases for costs of solar en12 ergy systems) and all that follows through

13 the end of the penultimate undesignated

14 paragraph; and

15 (ii) by striking the second and third

16 sentences of such matter; and

17 (C) by striking subparagraph (B);

18 (2) by transferring and inserting subparagraph

19 (A) of paragraph (10) after subparagraph (A) of

20 paragraph (2) and amending such subparagraph by

21 striking all of the matter that precedes clause (i)

22 and inserting the following:

23 ‘‘(B) not to exceed an amount equal to the

24 sum of—’’;

25 (3) by transferring and inserting the last undes26 ignated paragraph of paragraph (2) (relating to dis-
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1 closure notice) after subsection (e), realigning such

2 transferred paragraph so as to be flush with the left

3 margin, and amending such transferred paragraph

4 by inserting ‘‘(f) DISCLOSURE OF OTHER MORT5 GAGE PRODUCTS.—’’ before ‘‘In conjunction’’;

6 (4) by transferring and inserting the sentence

7 that constitutes the text of paragraph (10)(B) after

8 the period at the end of the first sentence that fol9 lows subparagraph (B) (relating to the definition of

10 ‘‘area’’); and

11 (5) by striking paragraph (10) (as amended by

12 the preceding provisions this section).

13 (b) CONFORMING AMENDMENTS.—Section 245 of the

14 National Housing Act (12 U.S.C. 1715z–10) is

15 amended—

16 (1) in subsection (a), by striking ‘‘, or if the

17 mortgagor’’ and all that follows through ‘‘case of

18 veterans’’; and

19 (2) in subsection (b)(3), by striking ‘‘, or, if

20 the’’ and all that follows through ‘‘for veterans,’’.

21 SEC. 203. REDUCED DOWNPAYMENT REQUIREMENTS FOR

22 LOANS FOR TEACHERS AND UNIFORMED MU23 NICIPAL EMPLOYEES.

24 (a) IN GENERAL.—Section 203(b) of the National

25 Housing Act (12 U.S.C. 1709(b)), as amended by section
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1 202 of this Act, is further amended by adding at the end

2 the following new paragraph:

3 ‘‘(10) REDUCED DOWNPAYMENT REQUIRE4 MENTS FOR TEACHERS AND UNIFORMED MUNICIPAL

5 EMPLOYEES.—

6 ‘‘(A) IN GENERAL.—Notwithstanding para7 graph (2), in the case of a mortgage described

8 in subparagraph (B)—

9 ‘‘(i) the mortgage shall involve a prin10 cipal obligation in an amount that does not

11 exceed the sum of 99 percent of the ap12 praised value of the property and the total

13 amount of initial service charges, ap14 praisal, inspection, and other fees (as the

15 Secretary shall approve) paid in connection

16 with the mortgage;

17 ‘‘(ii) no other provision of this sub18 section limiting the principal obligation of

19 the mortgage based upon a percentage of

20 the appraised value of the property subject

21 to the mortgage shall apply; and

22 ‘‘(iii) the matter in paragraph (9) that

23 precedes the first proviso shall not apply

24 and the mortgage shall be executed by a

25 mortgagor who shall have paid on account
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1 of the property at least 1 percent of the

2 cost of acquisition (as determined by the

3 Secretary) in cash or its equivalent.

4 ‘‘(B) MORTGAGES COVERED.—A mortgage

5 described in this subparagraph is a mortgage—

6 ‘‘(i) under which the mortgagor is an

7 individual who—

8 ‘‘(I) is employed on a full-time

9 basis as: (aa) a teacher or adminis10 trator in a public or private school

11 that provides elementary or secondary

12 education, as determined under State

13 law, except that elementary education

14 shall include pre-Kindergarten edu15 cation, and except that secondary edu16 cation shall not include any education

17 beyond grade 12; or (bb) a public

18 safety officer (as such term is defined

19 in section 1204 of the Omnibus Crime

20 Control and Safe Streets Act of 1968

21 (42 U.S.C. 3796b), except that such

22 term shall not include any officer

23 serving a public agency of the Federal

24 Government); and
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1 ‘‘(II) has not, during the 12-

2 month period ending upon the insur3 ance of the mortgage, had any present

4 ownership interest in a principal resi5 dence located in the jurisdiction de6 scribed in clause (ii); and

7 ‘‘(ii) made for a property that is lo8 cated within the jurisdiction of—

9 ‘‘(I) in the case of a mortgage of

10 a mortgagor described in clause

11 (i)(I)(aa), the local educational agency

12 (as such term is defined in section

13 14101 of the Elementary and Sec14 ondary Education Act of 1965 (20

15 U.S.C. 8801)) for the school in which

16 the mortgagor is employed (or, in the

17 case of a mortgagor employed in a

18 private school, the local educational

19 agency having jurisdiction for the area

20 in which the private school is located);

21 or

22 ‘‘(II) in the case of a mortgage of

23 a mortgagor described in clause

24 (i)(I)(bb), the jurisdiction served by

25 the public law enforcement agency,
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1 firefighting agency, or rescue or am2 bulance agency that employs the

3 mortgagor.’’.

4 (b) DEFERRAL AND REDUCTION OF UP-FRONT PRE5 MIUM.—Section 203(c) of the National Housing Act (12

6 U.S.C. 1709(c)(2)) is amended—

7 (1) in paragraph (2), in the matter preceding

8 subparagraph (A), by striking ‘‘Notwithstanding’’

9 and inserting ‘‘Except as provided in paragraph (3)

10 and notwithstanding’’; and

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

12 paragraph:

13 ‘‘(3) DEFERRAL AND REDUCTION OF UP-FRONT PRE14 MIUM.—In the case of any mortgage described in sub15 section (b)(10)(B):

16 ‘‘(A) Paragraph (2)(A) of this subsection (relat17 ing to collection of up-front premium payments)

18 shall not apply.

19 ‘‘(B) If, at any time during the 5-year period

20 beginning on the date of the insurance of the mort21 gage, the mortgagor ceases to be employed as de22 scribed in subsection (b)(10)(B)(i)(I) or pays the

23 principal obligation of the mortgage in full, the Sec24 retary shall at such time collect a single premium

25 payment in an amount equal to the amount of the
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1 single premium payment that, but for this para2 graph, would have been required under paragraph

3 (2)(A) of this subsection with respect to the mort4 gage, as reduced by 20 percent of such amount for

5 each successive 12-month period completed during

6 such 5-year period before such cessation or prepay7 ment occurs.’’.

8 SEC. 204. PREVENTING FRAUD IN REHABILITATION LOAN

9 PROGRAM.

10 (a) IN GENERAL.—Section 203(k) of the National

11 Housing Act (12 U.S.C. 1709(k)) is amended by adding

12 at the end the following new paragraph:

13 ‘‘(7) PREVENTION OF FRAUD.—To prevent fraud

14 under the program for loan insurance authorized under

15 this subsection, the Secretary shall, by regulation, take the

16 following actions:

17 ‘‘(A) PROHIBITION OF IDENTITY OF INTER18 EST.—The Secretary shall prohibit any identity-of19 interest, as such term is defined by the Secretary,

20 between any of the following parties involved in a

21 loan insured under this subsection: the borrower (in22 cluding, in the case of a borrower that is a nonprofit

23 organization, any member of the board of directors

24 or the staff of the organization), the lender, any con25 sultant, any real estate agent, any property inspec-
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1 tor, and any appraiser. Nothing in this subpara2 graph may be construed to prohibit or restrict, or

3 authorize the Secretary to prohibit or restrict, the

4 functioning of a affiliated business arrangement that

5 complies with the requirements under section 8(c)(4)

6 of the Real Estate Settlement Procedures Act of

7 1974 (12 U.S.C. 2607(c)(4)).

8 ‘‘(B) NONPROFIT PARTICIPATION.—The Sec9 retary shall establish minimum standards for a non10 profit organization to participate in the program,

11 which shall include—

12 ‘‘(i) requiring such an organization to dis13 close to the Secretary its taxpayer identification

14 number and evidence sufficient to indicate that

15 the organization is an organization described in

16 section 501(c) of the Internal Revenue Code of

17 1986 that is exempt from taxation under sub18 title A of such Code;

19 ‘‘(ii) requiring that the board of directors

20 of such an organization be comprised only of in21 dividuals who do not receive any compensation

22 or other thing of value by reason of their serv23 ice on the board and who have no personal fi24 nancial interest in the rehabilitation project of
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1 the organization that is financed with the loan

2 insured under this subsection;

3 ‘‘(iii) requiring such an organization to

4 submit to the Secretary financial statements of

5 the organization for the most recent 2 years,

6 which have been prepared by a party that is un7 affiliated with the organization and is qualified

8 to prepare financial statements;

9 ‘‘(iv) limiting to 10 the number of loans

10 that are insured under this subsection, made to

11 any single such organization, and, at any one

12 time, have an outstanding balance of principal

13 or interest, except that the Secretary may in14 crease such numerical limitation on a case-by15 case basis for good cause shown; and

16 ‘‘(v) requiring such an organization to have

17 been certified by the Secretary as meeting the

18 requirements under this subsection and other19 wise eligible to participate in the program not

20 more than 2 years before obtaining a loan in21 sured under this section.

22 ‘‘(C) COMPLETION OF WORK.—The Secretary

23 shall prohibit any lender making a loan insured

24 under this subsection from disbursing the final pay25 ment of loan proceeds unless the lender has received
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1 affirmation, from the borrower under the loan, both

2 in writing and pursuant to an interview in person or

3 over the telephone, that the rehabilitation activities

4 financed by the loan have been satisfactorily com5 pleted.

6 ‘‘(D) CONSULTANT STANDARDS.—The Sec7 retary shall require that any consultant, as such

8 term is defined by the Secretary, who is involved in

9 a home inspection, site visit, or preparation of bids

10 with respect to any loan insured under this section

11 shall meet such standards established by the Sec12 retary to ensure accurate inspections and prepara13 tion of bids.

14 ‘‘(E) CONTRACTOR QUALIFICATION.—The Sec15 retary shall require, in the case of any loan that is

16 insured under this subsection and involves rehabili17 tation with a cost of $25,000 or more, that the con18 tractor or other person performing or supervising

19 the rehabilitation activities financed by the loan

20 shall—

21 ‘‘(i) be certified by a nationally recognized

22 organization as meeting industry standards for

23 quality of workmanship, training, and con24 tinuing education, including financial manage25 ment;
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1 ‘‘(ii) be licensed to conduct such activities

2 by the State or unit of general local government

3 in which the rehabilitation activities are being

4 completed; or

5 ‘‘(iii) be bonded or provide such equivalent

6 protection, as the Secretary may require.’’.

7 (b) REPORT ON ACTIVITY OF NONPROFIT ORGANIZA8 TIONS UNDER PROGRAM.—Not later than 60 days after

9 the date of the enactment of this Act, the Secretary of

10 Housing and Urban Development shall submit a report

11 to the Congress regarding the participation of nonprofit

12 organizations under the rehabilitation loan program under

13 section 203(k) of the National Housing Act (12 U.S.C.

14 1709(k)). The report shall—

15 (1) determine and describe the extent of partici16 pation in the program by such organizations;

17 (2) identify and compare the default and claim

18 rates for loans made under the program to nonprofit

19 organizations and to owner-occupier participants;

20 (3) analyze the impact, on such organizations

21 and the program, of prohibiting such organizations

22 from participating in the program; and

23 (4) identify other opportunities for such organi24 zations to acquire financing or credit enhancement

25 for rehabilitation activities.
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1 (c) REGULATIONS.—The Secretary of Housing and

2 Urban Development shall issue final regulations and any

3 other administrative orders or notices necessary to carry

4 out the provisions of this section and the amendments

5 made by this section not later than 120 days after the

6 date of the enactment of this Act.

7 SEC. 205. COMMUNITY PARTNERS NEXT DOOR PROGRAM.

8 (a) SHORT TITLE.—This section may be cited as the

9 ‘‘Community Partners Next Door Act’’.

10 (b) CONGRESSIONAL FINDINGS.—The Congress finds

11 that—

12 (1) teachers, law enforcement officers, fire

13 fighters, and rescue personnel help form the back14 bones of communities and are integral components

15 in the social capital of neighborhoods in the United

16 States; and

17 (2) providing a discounted purchase price on

18 HUD-owned properties for teachers, law enforce19 ment officers, fire fighters, and rescue personnel rec20 ognizes the intrinsic value of the services provided by

21 such employees to their communities and to family

22 life and encourages and rewards those who are dedi23 cated to providing public service in our most needy

24 communities.
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1 (c) DISCOUNT AND DOWNPAYMENT ASSISTANCE FOR

2 TEACHERS.—Section 204(h) of the National Housing Act

3 (12 U.S.C. 1710(h)) is amended—

4 (1) by redesignating paragraphs (7) through

5 (10) as paragraphs (8) through (11), respectively;

6 and

7 (2) by inserting after paragraph (6) the fol8 lowing new paragraph:

9 ‘‘(7) 50 PERCENT DISCOUNT FOR TEACHERS

10 AND PUBLIC SAFETY OFFICERS PURCHASING PROP11 ERTIES THAT ARE ELIGIBLE ASSETS.—

12 ‘‘(A) DISCOUNT.—A property that is an el13 igible asset and is sold, during fiscal years 2000

14 through 2004, to a teacher or public safety offi15 cer for use in accordance with subparagraph

16 (B) shall be sold at a price that is equal to 50

17 percent of the appraised value of the eligible

18 property (as determined in accordance with

19 paragraph (6)(B)). In the case of a property el20 igible for both a discount under this paragraph

21 and a discount under paragraph (6), the dis22 count under paragraph (6) shall not apply.

23 ‘‘(B) PRIMARY RESIDENCE.—An eligible

24 property sold pursuant to a discount under this

25 paragraph shall be used, for not less than the
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1 3-year period beginning upon such sale, as the

2 primary residence of a teacher or public safety

3 officer.

4 ‘‘(C) SALE METHODS.—The Secretary may

5 sell an eligible property pursuant to a discount

6 under this paragraph—

7 ‘‘(i) to a unit of general local govern8 ment or nonprofit organization (pursuant

9 to paragraph (4) or otherwise), for resale

10 or transfer to a teacher or public safety of11 ficer; or

12 ‘‘(ii) directly to a purchaser who is a

13 teacher or public safety officer.

14 ‘‘(D) RESALE.—In the case of any pur15 chase by a unit of general local government or

16 nonprofit organization of an eligible property

17 sold at a discounted price under this paragraph,

18 the sale agreement under paragraph (8) shall—

19 ‘‘(i) require the purchasing unit of

20 general local government or nonprofit or21 ganization to provide the full benefit of the

22 discount to the teacher or public safety of23 ficer obtaining the property; and

24 ‘‘(ii) in the case of a purchase involv25 ing multiple eligible assets, any of which is
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1 such an eligible property, designate the

2 specific eligible property or properties to be

3 subject to the requirements of subpara4 graph (B).

5 ‘‘(E) MORTGAGE DOWNPAYMENT ASSIST6 ANCE.—If a teacher or public safety officer pur7 chases an eligible property pursuant to a dis8 counted sale price under this paragraph and fi9 nances such purchase through a mortgage in10 sured under this title, notwithstanding any pro11 vision of section 203 the downpayment on such

12 mortgage shall be $100.

13 ‘‘(F) PREVENTION OF UNDUE PROFIT.—

14 The Secretary shall issue regulations to prevent

15 undue profit from the resale of eligible prop16 erties in violation of the requirement under sub17 paragraph (B).

18 ‘‘(G) DEFINITIONS.—For the purposes of

19 this paragraph, the following definitions shall

20 apply:

21 ‘‘(i) The terms ‘elementary school’

22 and ‘secondary school’ have the meanings

23 given such terms in section 14101 of the

24 Elementary and Secondary Education Act

25 of 1965 (20 U.S.C. 8801), except that, for
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1 purposes of this paragraph, elementary

2 education (as used in such section) shall

3 include pre-Kindergarten education.

4 ‘‘(ii) The term ‘eligible property’

5 means an eligible asset described in para6 graph (2)(A) of this subsection.

7 ‘‘(iii) The term ‘public safety officer’

8 means an individual who is employed on a

9 full-time basis as a public safety officer de10 scribed in section 203(b)(10)(B)(i)(I)(bb).

11 ‘‘(iv) The term ‘teacher’ means an in12 dividual who is employed on a full-time

13 basis, in an elementary or secondary

14 school, as a State-certified or State-li15 censed classroom teacher or as an adminis16 trator.’’.

17 (d) CONFORMING AMENDMENTS.—Section 204(h) of

18 the National Housing Act (12 U.S.C. 1710(h)) is

19 amended—

20 (1) in paragraph (4)(B)(ii), by striking ‘‘para21 graph (7)’’ and inserting ‘‘paragraph (8)’’;

22 (2) in paragraph (5)(B)(i), by striking ‘‘para23 graph (7)’’ and inserting ‘‘paragraph (8)’’; and

24 (3) in paragraph (6)(A), by striking ‘‘paragraph

25 (8)’’ and inserting ‘‘paragraph (9)’’.
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1 (e) REGULATIONS.—Not later than 90 days after the

2 date of the enactment of this Act, the Secretary shall issue

3 regulations to implement the amendments made by this

4 section.

5 SEC. 206. RISK-SHARING DEMONSTRATION.

6 Section 249 of the National Housing Act (12 U.S.C.

7 1715z–14) is amended—

8 (1) by striking the section heading and insert9 ing the following:

10 ‘‘RISK-SHARING DEMONSTRATION’’;

11 (2) by striking ‘‘reinsurance’’ each place such

12 term appears and insert ‘‘risk-sharing’’;

13 (3) in subsection (a)—

14 (A) in the first sentence, by inserting ‘‘and

15 insured community development financial insti16 tutions’’ after ‘‘private mortgage insurers’’; and

17 (B) in the second sentence—

18 (i) by striking ‘‘two’’ and inserting

19 ‘‘4’’; and

20 (ii) by striking ‘‘March 15, 1988’’ and

21 inserting ‘‘the expiration of the 5-year pe22 riod beginning on the date of the enact23 ment of the American Homeownership and

24 Economic Opportunity Act of 2000’’;

25 (4) in subsection (b)—
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1 (A) in the first sentence, by inserting ‘‘and

2 with insured community development financial

3 institutions’’ before the period at the end;

4 (B) in the first sentence, by striking

5 ‘‘which have been determined to be qualified in6 surers under section 302(b)(2)(C)’’;

7 (C) in the second sentence, by inserting

8 ‘‘and insured community development financial

9 institutions’’ after ‘‘private mortgage insurance

10 companies’’;

11 (D) by striking paragraph (1) and insert12 ing the following new paragraph:

13 ‘‘(1) assume the first loss on any mortgage in14 sured pursuant to section 203(b), 234, or 245 that

15 covers a one- to four-family dwelling and is included

16 in the program under this section, up to the percent17 age of loss that is set forth in the risk-sharing con18 tract;’’; and

19 (E) in paragraph (2)—

20 (i) by striking ‘‘carry out (under ap21 propriate delegation) such’’ and inserting

22 ‘‘delegate underwriting,’’; and

23 (ii) by striking ‘‘function’’ and insert24 ing ‘‘functions’’;

25 (5) in subsection (c)—
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1 (A) in the first sentence—

2 (i) by striking ‘‘of’’ the first place it

3 appears and insert ‘‘for’’;

4 (ii) by striking ‘‘insurance reserves’’

5 and inserting ‘‘loss reserves’’; and

6 (iii) by striking ‘‘such insurance’’ and

7 inserting ‘‘such reserves’’; and

8 (B) in the second sentence, by inserting

9 ‘‘or insured community development financial

10 institution’’ after ‘‘private mortgage insurance

11 company’’;

12 (6) in subsection (d), by inserting ‘‘or insured

13 community development financial institution’’ after

14 ‘‘private mortgage insurance company’’; and

15 (7) by adding at the end the following new sub16 section:

17 ‘‘(e) INSURED COMMUNITY DEVELOPMENT FINAN18 CIAL INSTITUTIONS.—For purposes of this section, the

19 term ‘insured community development financial institu20 tion’ means a community development financial institu21 tion, as such term is defined in section 103 of Reigle Com22 munity Development and Regulatory Improvement Act of

23 1994 (12 U.S.C. 4702) that is an insured depository insti24 tution (as such term is defined in section 3 of the Federal

25 Deposit Insurance Act (12 U.S.C. 1813)) or an insured
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1 credit union (as such term is defined in section 101 of

2 the Federal Credit Union Act (12 U.S.C. 1752)).’’.

3 SEC. 207. HYBRID ARMS.

4 (a) IN GENERAL.—Section 251 of the National

5 Housing Act (12 U.S.C. 1715z–16) is amended—

6 (1) in subsection (a), by inserting ‘‘IN GEN7 ERAL.—’’ after ‘‘(a)’’;

8 (2) by striking subsection (b) and inserting the

9 following new subsection:

10 ‘‘(b) DISCLOSURE.—In the case of any loan applica11 tion for a mortgage to be insured under any provision of

12 this section, the Secretary shall require that the prospec13 tive mortgagee for the mortgage shall, at the time of loan

14 application, make available to the prospective mortgagor

15 a written explanation of the features of an adjustable rate

16 mortgage consistent with the disclosure requirements ap17 plicable to variable rate mortgages secured by a principal

18 dwelling under the Truth in Lending Act (15 U.S.C. 1601

19 et seq.).’’;

20 (3) in subsection (c), by inserting ‘‘LIMITATION

21 ON INSURANCE AUTHORITY.—’’ after ‘‘(c)’’; and

22 (4) by adding at the end the following new sub23 section:

24 ‘‘(d) HYBRID ARMS.—The Secretary may insure

25 under this subsection a mortgage that—
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1 ‘‘(1) has an effective rate of interest that shall

2 be—

3 ‘‘(A) fixed for a period of not less than the

4 first 3 years of the mortgage term;

5 ‘‘(B) initially adjusted by the mortgagee

6 upon the expiration of such period and annually

7 thereafter; and

8 ‘‘(C) in the case of the initial interest rate

9 adjustment, shall be subject to the limitation

10 under clause (2) of the last sentence of sub11 section (a) (relating to prohibiting annual in12 creases of more than 1 percent) only if the in13 terest rate remains fixed for 5 or fewer years;

14 and

15 ‘‘(2) otherwise meets the requirements for in16 surance under subsection (a) that are not incon17 sistent with the requirements under paragraph (1)

18 of this subsection.’’.

19 (b) IMPLEMENTATION.—The Secretary of Housing

20 and Urban Development may implement section 251(d) of

21 the National Housing Act (12 U.S.C. 1715z–16(d)), as

22 added by subsection (a) of this section, in advance of rule23 making.
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1 SEC. 208. HOME EQUITY CONVERSION MORTGAGES.

2 (a) INSURANCE FOR MORTGAGES TO REFINANCE EX3 ISTING HECMS.—

4 (1) IN GENERAL.—Section 255 of the National

5 Housing Act (12 U.S.C. 1715z–20) is amended—

6 (A) by redesignating subsection (k) as sub7 section (m); and

8 (B) by inserting after subsection (j) the

9 following new subsection:

10 ‘‘(k) INSURANCE AUTHORITY FOR REFINANCINGS.—

11 ‘‘(1) IN GENERAL.—The Secretary may, upon

12 application by a mortgagee, insure under this sub13 section any mortgage given to refinance an existing

14 home equity conversion mortgage insured under this

15 section.

16 ‘‘(2) ANTI-CHURNING DISCLOSURE.—The Sec17 retary shall, by regulation, require that the mort18 gagee of a mortgage insured under this subsection,

19 provide to the mortgagor, within an appropriate time

20 period and in a manner established in such regula21 tions, a good faith estimate of: (A) the total cost of

22 the refinancing; and (B) the increase in the mortga23 gor’s principal limit as measured by the estimated

24 initial principal limit on the mortgage to be insured

25 under this subsection less the current principal limit
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1 on the home equity conversion mortgage that is

2 being refinanced and insured under this subsection.

3 ‘‘(3) WAIVER OF COUNSELING REQUIRE4 MENT.—The mortgagor under a mortgage insured

5 under this subsection may waive the applicability,

6 with respect to such mortgage, of the requirements

7 under subsection (d)(2)(B) (relating to third party

8 counseling), but only if—

9 ‘‘(A) the mortgagor has received the disclo10 sure required under paragraph (2);

11 ‘‘(B) the increase in the principal limit de12 scribed in paragraph (2) exceeds the amount of

13 the total cost of refinancing (as described in

14 such paragraph) by an amount to be deter15 mined by the Secretary; and

16 ‘‘(C) the time between the closing of the

17 original home equity conversion mortgage that

18 is refinanced through the mortgage insured

19 under this subsection and the application for a

20 refinancing mortgage insured under this sub21 section does not exceed 5 years.

22 ‘‘(4) CREDIT FOR PREMIUMS PAID.—Notwith23 standing section 203(c)(2)(A), the Secretary may re24 duce the amount of the single premium payment

25 otherwise collected under such section at the time of
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1 the insurance of a mortgage refinanced and insured

2 under this subsection. The amount of the single pre3 mium for mortgages refinanced under this sub4 section shall be determined by the Secretary based

5 on the actuarial study required under paragraph (5).

6 ‘‘(5) ACTUARIAL STUDY.—Not later than 180

7 days after the date of the enactment of the Amer8 ican Homeownership and Economic Opportunity Act

9 of 2000, the Secretary shall conduct an actuarial

10 analysis to determine the adequacy of the insurance

11 premiums collected under the program under this

12 subsection with respect to—

13 ‘‘(A) a reduction in the single premium

14 payment collected at the time of the insurance

15 of a mortgage refinanced and insured under

16 this subsection;

17 ‘‘(B) the establishment of a single national

18 limit on the benefits of insurance under sub19 section (g) (relating to limitation on insurance

20 authority); and

21 ‘‘(C) the combined effect of reduced insur22 ance premiums and a single national limitation

23 on insurance authority.

24 ‘‘(6) FEES.—The Secretary may establish a

25 limit on the origination fee that may be charged to
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1 a mortgagor under a mortgage insured under this

2 subsection, except that such limitation shall provide

3 that the origination fee may be fully financed with

4 the mortgage and shall include any fees paid to cor5 respondent mortgagees approved by the Secretary.

6 The Secretary shall prohibit the charging of any

7 broker fees in connection with mortgages insured

8 under this subsection.’’.

9 (2) REGULATIONS.—The Secretary shall issue

10 any final regulations necessary to implement the

11 amendments made by paragraph (1) of this sub12 section, which shall take effect not later than the ex13 piration of the 180-day period beginning on the date

14 of the enactment of this Act. The regulations shall

15 be issued after notice and opportunity for public

16 comment in accordance with the procedure under

17 section 553 of title 5, United States Code, applicable

18 to substantive rules (notwithstanding subsections

19 (a)(2), (b)(B), and (d)(3) of such section).

20 (b) HOUSING COOPERATIVES.—Section 255(b) of the

21 National Housing Act (12 U.S.C. 1715z–20(b)) is

22 amended—

23 (1) in paragraph (2), by striking ‘‘ ‘mortgage’,’’;

24 and
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1 (2) by adding at the end the following new

2 paragraphs:

3 ‘‘(4) MORTGAGE.—The term ‘mortgage’ means

4 a first mortgage or first lien on real estate, in fee

5 simple, on all stock allocated to a dwelling in a resi6 dential cooperative housing corporation, or on a

7 leasehold—

8 ‘‘(A) under a lease for not less than 99

9 years that is renewable; or

10 ‘‘(B) under a lease having a period of not

11 less than 10 years to run beyond the maturity

12 date of the mortgage.

13 ‘‘(5) FIRST MORTGAGE.—The term ‘first mort14 gage’ means such classes of first liens as are com15 monly given to secure advances on, or the unpaid

16 purchase price of, real estate or all stock allocated

17 to a dwelling unit in a residential cooperative hous18 ing corporation, under the laws of the State in which

19 the real estate or dwelling unit is located, together

20 with the credit instruments, if any, secured there21 by.’’.

22 (c) WAIVER OF UP-FRONT PREMIUMS FOR MORT23 GAGES USED FOR COSTS OF LONG-TERM CARE INSUR24 ANCE OR HEALTH CARE.—Section 255 of the National

25 Housing Act (12 U.S.C. 1715z–20) is amended by insert-
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1 ing after subsection (k) (as added by subsection (a) of this

2 section) the following new subsection:

3 ‘‘(l) WAIVER OF UP-FRONT PREMIUMS.—

4 ‘‘(1) MORTGAGES TO FUND LONG-TERM CARE

5 INSURANCE.—In the case of any mortgage insured

6 under this section under which the total amount (ex7 cept as provided in paragraph (3)) of all future pay8 ments described in subsection (b)(3) will be used

9 only for costs of a qualified long-term care insurance

10 contract (as such term is defined in section 7702B

11 of the Internal Revenue Code of 1986 (26 U.S.C.

12 7702B)) that covers the mortgagor or members of

13 the household residing in the property that is subject

14 to the mortgage, notwithstanding section 203(c)(2),

15 the Secretary shall not charge or collect the single

16 premium payment otherwise required under subpara17 graph (A) of such section to be paid at the time of

18 insurance.

19 ‘‘(2) MORTGAGES TO FUND HEALTH CARE

20 COSTS.—In the case of any mortgage insured under

21 this section under which the future payments de22 scribed in subsection (b)(3) will be used only for

23 costs for health care services (as such term is de24 fined by the Secretary) for the mortgagor or mem25 bers of the household residing in the property that
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1 is subject to the mortgage and comply with limita2 tions on such payments, as shall be established by

3 the Secretary and based upon the purposes of this

4 subsection and the accumulated equity of the mort5 gagor in the property, notwithstanding section

6 203(c)(2), the Secretary shall not charge or collect

7 the single premium payment otherwise required

8 under subparagraph (A) of such section to be paid

9 at the time of insurance.

10 ‘‘(3) AUTHORITY TO REFINANCE EXISTING

11 MORTGAGE AND FINANCE CLOSING COSTS.—A mort12 gage described in paragraph (1) or (2) may provide

13 financing of amounts that are used to satisfy out14 standing mortgage obligations (in accordance with

15 such limitations as the Secretary shall prescribe) any

16 amounts used for initial service charges, appraisal,

17 inspection, and other fees (as approved by the Sec18 retary) in connection with such mortgage, and the

19 amount of future payments described in subsection

20 (b)(3) under the mortgage shall be reduced accord21 ingly.’’.

22 (d) STUDY OF SINGLE NATIONAL MORTGAGE

23 LIMIT.—The Secretary of Housing and Urban Develop24 ment shall conduct an actuarially based study of the ef25 fects of establishing, for mortgages insured under section
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1 255 of the National Housing Act (12 U.S.C. 1715z–20),

2 a single maximum mortgage amount limitation in lieu of

3 applicability of section 203(b)(2) of such Act (12 U.S.C.

4 1709(b)(2)). The study shall—

5 (1) examine the effects of establishing such lim6 itation at different dollar amounts; and

7 (2) examine the effects of such various limita8 tions on—

9 (A) the risks to the General Insurance

10 Fund established under section 519 of such

11 Act;

12 (B) the mortgage insurance premiums that

13 would be required to be charged to mortgagors

14 to ensure actuarial soundness of such Fund;

15 and

16 (C) take into consideration the various ap17 proaches to providing credit to borrowers who

18 refinance home equity conversion mortgages in19 sured under section 255 of such Act.

20 Not later than 180 days after the date of the enactment

21 of this Act, the Secretary shall complete the study under

22 this subsection and submit a report describing the study

23 and the results of the study to the Committee on Banking

24 and Financial Services of the House of Representatives
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1 and to the Committee on Banking, Housing, and Urban

2 Affairs of the Senate.

3 SEC. 209. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP

4 PILOT PROGRAM.

5 (a) ASSISTANCE FOR LAW ENFORCEMENT OFFI6 CERS.—The Secretary of Housing and Urban Develop7 ment shall carry out a pilot program in accordance with

8 this section to assist Federal, State, and local law enforce9 ment officers purchasing homes in locally-designated high10 crime areas.

11 (b) ELIGIBILITY.—To be eligible for assistance under

12 this section, a law enforcement officer shall—

13 (1) have completed not less than 6 months of

14 service as a law enforcement officer as of the date

15 that the law enforcement officer applies for such as16 sistance; and

17 (2) agree, in writing, to use the residence pur18 chased with such assistance as the primary residence

19 of the law enforcement officer for not less than 3

20 years after the date of purchase.

21 (c) MORTGAGE ASSISTANCE.—If a law enforcement

22 officer purchases a home in locally-designated high-crime

23 area and finances such purchase through a mortgage in24 sured under title II of the National Housing Act (12

25 U.S.C. 1707 et seq.), notwithstanding any provision of
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1 section 203 or any other provision of the National Hous2 ing Act, the following shall apply:

3 (1) DOWNPAYMENT.—

4 (A) IN GENERAL.—There shall be no

5 downpayment required if the purchase price of

6 the property is not more than the reasonable

7 value of the property, as determined by the Sec8 retary.

9 (B) PURCHASE PRICE EXCEEDS VALUE.—

10 If the purchase price of the property exceeds

11 the reasonable value of the property, as deter12 mined by the Secretary, the required downpay13 ment shall be the difference between such rea14 sonable value and the purchase price.

15 (2) CLOSING COSTS.—The closing costs and

16 origination fee for such mortgage may be included in

17 the loan amount.

18 (3) INSURANCE PREMIUM PAYMENT.—There

19 shall be one insurance premium payment due on the

20 mortgage. Such insurance premium payment—

21 (A) shall be equal to 1 percent of the loan

22 amount;

23 (B) shall be due and considered earned by

24 the Secretary at the time of the loan closing;

25 and
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1 (C) may be included in the loan amount

2 and paid from the loan proceeds.

3 (d) LOCALLY-DESIGNATED HIGH-CRIME AREA.—

4 (1) IN GENERAL.—Any unit of local govern5 ment may request that the Secretary designate any

6 area within the jurisdiction of that unit of local gov7 ernment as a locally-designated high-crime area for

8 purposes of this section if the proposed area—

9 (A) has a crime rate that is significantly

10 higher than the crime rate of the non-des11 ignated area that is within the jurisdiction of

12 the unit of local government; and

13 (B) has a population that is not more than

14 25 percent of the total population of area with15 in the jurisdiction of the unit of local govern16 ment.

17 (2) DEADLINE FOR CONSIDERATION OF RE18 QUEST.—Not later than 60 days after receiving a re19 quest under paragraph (1), the Secretary shall ap20 prove or disapprove the request.

21 (e) LAW ENFORCEMENT OFFICER.—For purposes of

22 this section, the term ‘‘law enforcement officer’’ has such

23 meaning as the Secretary shall provide, except that such

24 term shall include any individual who is employed as an

25 officer in a correctional institution.
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1 (f) SUNSET.—The Secretary shall not approve any

2 application for assistance under this section that is re3 ceived by the Secretary after the expiration of the 3-year

4 period beginning on the date that the Secretary first

5 makes available assistance under the pilot program under

6 this section.

7 SEC. 210. STUDY OF MANDATORY INSPECTION REQUIRE8 MENT UNDER SINGLE FAMILY HOUSING

9 MORTGAGE INSURANCE PROGRAM.

10 (a) STUDY.—The Comptroller General of the United

11 States shall conduct a study regarding the inspection of

12 properties purchased with loans insured under section 203

13 of the National Housing Act. The study shall evaluate the

14 following issues:

15 (1) The feasibility of requiring inspections of all

16 properties purchased with loans insured under such

17 section.

18 (2) The level of financial losses or savings to

19 the Mutual Mortgage Insurance Fund that are likely

20 to occur if inspections are required on properties

21 purchased with loans insured under such section.

22 (3) The potential impact on the process of buy23 ing a home if inspections of properties purchased

24 with loans insured under such section are required,

25 including the process of buying a home in under-
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1 served areas where losses to the Mutual Mortgage

2 Insurance Fund are greatest.

3 (4) The difference, if any, in the quality of

4 homes purchased with loans insured under such sec5 tion that are inspected before purchase and such

6 homes that are not inspected before purchase.

7 (5) The cost to homebuyers of requiring inspec8 tions before purchase of properties with loans in9 sured under such section.

10 (6) The extent, if any, to which requiring in11 spections of properties purchased with loans insured

12 under such section will result in adverse selection of

13 loans insured under such section.

14 (7) The extent of homebuyer knowledge regard15 ing property inspections and the extent to which

16 such knowledge affects the decision of homebuyers

17 to opt for or against having a property inspection

18 before purchasing a home.

19 (8) The impact of the Homebuyer Protection

20 Plan implemented by the Department of Housing

21 and Urban Development on the number of apprais22 ers authorized to appraise homes with mortgages in23 sured under section 203 of the National Housing

24 Act.
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1 (9) The cost to homebuyers incurred as a result

2 of the Homebuyer Protection plan, taking into con3 sideration, among other factors, an increase in ap4 praisal fees.

5 (10) The benefit or adverse impact of the

6 Homebuyer Protection Plan on minority home7 buyers.

8 (11) The extent to which the appraisal require9 ments of the Homebuyer Protection Plan conflict

10 with State laws regarding appraisals and home in11 spections.

12 (b) REPORT.—Not later than the expiration of the

13 1-year period beginning on the date of the enactment of

14 this Act, the Comptroller General shall submit to the Con15 gress a report containing the results of the study and any

16 recommendations with respect to the issues specified

17 under this section.

18 SEC. 211. REPORT ON TITLE I HOME IMPROVEMENT LOAN

19 PROGRAM.

20 (a) IN GENERAL.—Not later than 3 months after the

21 date of the enactment of this Act, the Secretary of Hous22 ing and Urban Development shall submit a report to the

23 Congress containing recommendations for improvements

24 to the property improvement loan insurance program

25 under title I of the National Housing Act, including im-
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1 provements designed to address problems relating to home

2 improvement contractors obtaining loans on behalf of

3 homeowners.

4 (b) CONSULTATION.—In developing and determining

5 recommendations for inclusion in the report under this

6 section and in preparing the report, the Secretary shall

7 consult with interested persons, organizations, and enti8 ties, including representatives of the lending industry, the

9 home improvement industry, and consumer organizations.

10 SEC. 212. SENSE OF THE CONGRESS REGARDING MAKING

11 PROPERTIES AVAILABLE FOR HOMEOWNER12 SHIP PROGRAMS.

13 It is the sense of the Congress that the Secretary of

14 Housing and Urban Development should consult with the

15 heads of other agencies of the Federal Government that

16 own or hold properties appropriate for use as housing to

17 determine the possibility and effectiveness of including

18 such properties in programs that make housing available

19 for law enforcement officers, teachers, or fire fighters.

20 SEC. 213. PROPERTY IMPROVEMENT LOAN LIMIT FOR SIN21 GLE-FAMILY HOMES.

22 Section 2(b)(1)(A)(i) of the National Housing Act

23 (12 U.S.C. 1703(b)(1)(A)(i)) is amended by striking

24 ‘‘$25,000’’ and inserting ‘‘$32,500’’.
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1 TITLE III—SECTION 8

2 HOMEOWNERSHIP OPTION

3 SEC. 301. DOWNPAYMENT ASSISTANCE.

4 (a) AMENDMENTS.—Section 8(y) of the United

5 States Housing Act of 1937 (42 U.S.C. 1437f(y)) is

6 amended—

7 (1) by redesignating paragraph (7) as para8 graph (8); and

9 (2) by inserting after paragraph (6) the fol10 lowing new paragraph:

11 ‘‘(7) DOWNPAYMENT ASSISTANCE.—

12 ‘‘(A) AUTHORITY.—A public housing agen13 cy may, in lieu of providing monthly assistance

14 payments under this subsection on behalf of a

15 family eligible for such assistance and at the

16 discretion of the public housing agency, provide

17 assistance for the family in the form of a single

18 grant to be used only as a contribution toward

19 the downpayment required in connection with

20 the purchase of a dwelling for fiscal year 2000

21 and each fiscal year thereafter to the extent

22 provided in advance in appropriations Acts.

23 ‘‘(B) AMOUNT.—The amount of a down24 payment grant on behalf of an assisted family

25 may not exceed the amount that is equal to the
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1 sum of the assistance payments that would be

2 made during the first year of assistance on be3 half of the family, based upon the income of the

4 family at the time the grant is to be made.’’.

5 (b) EFFECTIVE DATE.—The amendments made by

6 subsection (a) shall take effect immediately after the

7 amendments made by section 555(c) of the Quality Hous8 ing and Work Responsibility Act of 1998 take effect pur9 suant to such section.

10 SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSIST11 ANCE FOR DISABLED FAMILIES.

12 (a) IN GENERAL.—A public housing agency providing

13 tenant-based assistance on behalf of an eligible family

14 under section 8 of the United States Housing Act of 1937

15 (42 U.S.C. 1437f) may provide assistance for a disabled

16 family that purchases a dwelling unit (including a dwelling

17 unit under a lease-purchase agreement) that will be owned

18 by one or more members of the disabled family and will

19 be occupied by the disabled family, if the disabled family—

20 (1) purchases the dwelling unit before the expi21 ration of the 3-year period beginning on the date

22 that the Secretary first implements the pilot pro23 gram under this section;

24 (2) demonstrates that the disabled family has

25 income from employment or other sources (including
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1 public assistance), as determined in accordance with

2 requirements of the Secretary, that is not less than

3 twice the payment standard established by the public

4 housing agency (or such other amount as may be es5 tablished by the Secretary);

6 (3) except as provided by the Secretary, dem7 onstrates at the time the disabled family initially re8 ceives tenant-based assistance under this section

9 that one or more adult members of the disabled fam10 ily have achieved employment for the period as the

11 Secretary shall require;

12 (4) participates in a homeownership and hous13 ing counseling program provided by the agency; and

14 (5) meets any other initial or continuing re15 quirements established by the public housing agency

16 in accordance with requirements established by the

17 Secretary.

18 (b) DETERMINATION OF AMOUNT OF ASSISTANCE.—

19 (1) IN GENERAL.—

20 (A) MONTHLY EXPENSES NOT EXCEEDING

21 PAYMENT STANDARD.—If the monthly home22 ownership expenses, as determined in accord23 ance with requirements established by the Sec24 retary, do not exceed the payment standard, the

25 monthly assistance payment shall be the
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1 amount by which the homeownership expenses

2 exceed the highest of the following amounts,

3 rounded to the nearest dollar:

4 (i) 30 percent of the monthly adjusted

5 income of the disabled family.

6 (ii) 10 percent of the monthly income

7 of the disabled family.

8 (iii) If the disabled family is receiving

9 payments for welfare assistance from a

10 public agency, and a portion of those pay11 ments, adjusted in accordance with the ac12 tual housing costs of the disabled family, is

13 specifically designated by that agency to

14 meet the housing costs of the disabled fam15 ily, the portion of those payments that is

16 so designated.

17 (B) MONTHLY EXPENSES EXCEED PAY18 MENT STANDARD.—If the monthly homeowner19 ship expenses, as determined in accordance with

20 requirements established by the Secretary, ex21 ceed the payment standard, the monthly assist22 ance payment shall be the amount by which the

23 applicable payment standard exceeds the high24 est of the amounts under clauses (i), (ii), and

25 (iii) of subparagraph (A).
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1 (2) CALCULATION OF AMOUNT.—

2 (A) LOW-INCOME FAMILIES.—A disabled

3 family that is a low-income family shall be eligi4 ble to receive 100 percent of the amount cal5 culated under paragraph (1).

6 (B) INCOME BETWEEN 81 AND 89 PERCENT

7 OF MEDIAN.—A disabled family whose income

8 is between 81 and 89 percent of the median for

9 the area shall be eligible to receive 66 percent

10 of the amount calculated under paragraph (1).

11 (C) INCOME BETWEEN 90 AND 99 PERCENT

12 OF MEDIAN.—A disabled family whose income

13 is between 90 and 99 percent of the median for

14 the area shall be eligible to receive 33 percent

15 of the amount calculated under paragraph (1).

16 (D) INCOME MORE THAN 99 PERCENT OF

17 MEDIAN.—A disabled family whose income is

18 more than 99 percent of the median for the

19 area shall not be eligible to receive assistance

20 under this section.

21 (c) INSPECTIONS AND CONTRACT CONDITIONS.—

22 (1) IN GENERAL.—Each contract for the pur23 chase of a dwelling unit to be assisted under this

24 section shall—
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1 (A) provide for pre-purchase inspection of

2 the dwelling unit by an independent profes3 sional; and

4 (B) require that any cost of necessary re5 pairs be paid by the seller.

6 (2) ANNUAL INSPECTIONS NOT REQUIRED.—

7 The requirement under subsection (o)(8)(A)(ii) of

8 section 8 of the United States Housing Act of 1937

9 for annual inspections shall not apply to dwelling

10 units assisted under this section.

11 (d) OTHER AUTHORITY OF THE SECRETARY.—The

12 Secretary may—

13 (1) limit the term of assistance for a disabled

14 family assisted under this section;

15 (2) provide assistance for a disabled family for

16 the entire term of a mortgage for a dwelling unit if

17 the disabled family remains eligible for such assist18 ance for such term; and

19 (3) modify the requirements of this section as

20 the Secretary determines to be necessary to make

21 appropriate adaptations for lease-purchase agree22 ments.

23 (e) ASSISTANCE PAYMENTS SENT TO LENDER.—The

24 Secretary shall remit assistance payments under this sec25 tion directly to the mortgagee of the dwelling unit pur-
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1 chased by the disabled family receiving such assistance

2 payments.

3 (f) INAPPLICABILITY OF CERTAIN PROVISIONS.—As4 sistance under this section shall not be subject to the re5 quirements of the following provisions:

6 (1) Subsection (c)(3)(B) of section 8 of the

7 United States Housing Act of 1937.

8 (2) Subsection (d)(1)(B)(i) of section 8 of the

9 United States Housing Act of 1937.

10 (3) Any other provisions of section 8 of the

11 United States Housing Act of 1937 governing max12 imum amounts payable to owners and amounts pay13 able by assisted families.

14 (4) Any other provisions of section 8 of the

15 United States Housing Act of 1937 concerning con16 tracts between public housing agencies and owners.

17 (5) Any other provisions of the United States

18 Housing Act of 1937 that are inconsistent with the

19 provisions of this section.

20 (g) REVERSION TO RENTAL STATUS.—

21 (1) NON-FHA MORTGAGES.—If a disabled fam22 ily receiving assistance under this section defaults

23 under a mortgage not insured under the National

24 Housing Act, the disabled family may not continue

25 to receive rental assistance under section 8 of the
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1 United States Housing Act of 1937 unless it com2 plies with requirements established by the Secretary.

3 (2) ALL MORTGAGES.—A disabled family receiv4 ing assistance under this section that defaults under

5 a mortgage may not receive assistance under this

6 section for occupancy of another dwelling unit owned

7 by 1 or more members of the disabled family.

8 (3) EXCEPTION.—This subsection shall not

9 apply if the Secretary determines that the disabled

10 family receiving assistance under this section de11 faulted under a mortgage due to catastrophic med12 ical reasons or due to the impact of a federally de13 clared major disaster or emergency.

14 (h) REGULATIONS.—Not later than 90 days after the

15 date of the enactment of this Act, the Secretary shall issue

16 regulations to implement this section. Such regulations

17 may not prohibit any public housing agency providing ten18 ant-based assistance on behalf of an eligible family under

19 section 8 of the United States Housing Act of 1937 from

20 participating in the pilot program under this section.

21 (i) DEFINITION OF DISABLED FAMILY.—For the

22 purposes of this section, the term ‘‘disabled family’’ has

23 the meaning given the term ‘‘person with disabilities’’ in

24 section 811(k)(2) of the Cranston-Gonzalez National Af25 fordable Housing Act (42 U.S.C. 8013(k)(2)).
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1 SEC. 303. FUNDING FOR PILOT PROGRAMS.

2 (a) AUTHORIZATION OF APPROPRIATIONS.—There is

3 authorized to be appropriated $2,000,000 for fiscal year

4 2001 for assistance in connection with the existing home5 ownership pilot programs carried out under the dem6 onstration program authorized under to section 555(b) of

7 the Quality Housing and Work Responsibility Act of 1998

8 (Public Law 105–276; 112 Stat. 2613).

9 (b) USE.—Subject to subsection (c), amounts made

10 available pursuant to this section shall be used only

11 through such homeownership pilot programs to provide,

12 on behalf of families participating in such programs,

13 amounts for downpayments in connection with dwellings

14 purchased by such families using assistance made avail15 able under section 8(y) of the United States Housing Act

16 of 1937 (42 U.S.C. 1437f(y)). No such downpayment

17 grant may exceed 20 percent of the appraised value of the

18 dwelling purchased with assistance under such section

19 8(y).

20 (c) MATCHING REQUIREMENT.—The amount of as21 sistance made available under this section for any existing

22 homeownership pilot program may not exceed twice the

23 amount donated from sources other than this section for

24 use under the program for assistance described in sub25 section (b). Amounts donated from other sources may in-
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1 clude amounts from State housing finance agencies and

2 Neighborhood Housing Services of America.

3 TITLE IV—COMMUNITY

4 DEVELOPMENT BLOCK GRANTS

5 SEC. 401. REAUTHORIZATION.

6 (a) AUTHORIZATION OF APPROPRIATIONS.—The last

7 sentence of section 103 of the Housing and Community

8 Development Act of 1974 (42 U.S.C. 5303) is amended

9 to read as follows: ‘‘For purposes of assistance under sec10 tion 106, there is authorized to be appropriated

11 $4,900,000,000 for fiscal year 2001 and such sums as

12 may be necessary for each of fiscal years 2002, 2003,

13 2004, and 2005.’’.

14 (b) ENTITLEMENT GRANTS.—

15 (1) IN GENERAL.—Section 102(a)(5)(B) of the

16 Housing and Community Development Act of 1974

17 (42 U.S.C. 5302(a)(5)(B)) is amended—

18 (A) by inserting ‘‘(I)’’ after ‘‘(iii)’’; and

19 (B) by inserting before the period at the

20 end the following: ‘‘, or (II) has a population in

21 its unincorporated areas of not less than

22 450,000, except that a town or township which

23 is designated as a city pursuant to this sub24 clause shall have only its unincorporated areas

25 considered as a city for purposes of this title’’.
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1 (2) TREATMENT AS SEPARATE FROM URBAN

2 COUNTIES.—Section 102(d) of the Housing and

3 Community Development Act of 1974 (42 U.S.C.

4 5302(d)) is amended—

5 (A) by inserting ‘‘(1)’’ after ‘‘(d)’’; and

6 (B) by adding at the end the following new

7 paragraph:

8 ‘‘(2) Notwithstanding paragraph (1), a town or town9 ship that is classified as a city by reason of subclause (II)

10 of section 102(a)(5)(B)(iii) shall be treated, for purposes

11 of eligibility for a grant under section 106(b)(1) from

12 amounts made available for a fiscal year beginning after

13 the date of the enactment of the American Homeowner14 ship and Economic Opportunity Act of 2000, as an entity

15 separate from the urban county in which it is located.’’.

16 (3) ELIGIBILITY OF CERTAIN URBAN COUN17 TIES.—Section 102(a)(6) of the Housing and Com18 munity Development Act of 1974 (42 U.S.C.

19 5302(a)(6)) is amended—

20 (1) in subparagraph (D)—

21 (A) in clause (v), by striking ‘‘or’’ at the

22 end;

23 (B) in clause (vi), by striking the period at

24 the end and inserting ‘‘; or’’; and
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1 (C) by adding at the end the following new

2 clause:

3 ‘‘(vii)(I) has consolidated its government

4 with one or more municipal governments, such

5 that within the county boundaries there are no

6 unincorporated areas, (II) has a population of

7 not less than 650,000, over which the consoli8 dated government has the authority to under9 take essential community development and

10 housing assistance activities, (III) for more

11 than 10 years, has been classified as an entitle12 ment area for purposes of allocating and dis13 tributing funds under section 106, and (IV) as

14 of the date of the enactment of this clause, has

15 over 90 percent of the county’s population with16 in the jurisdiction of the consolidated govern17 ment.’’; and

18 (2) by adding at the end the following new sub19 paragraph:

20 ‘‘(F) Notwithstanding any other provision of

21 this paragraph, any county that was classified as an

22 urban county pursuant to subparagraph (A) for fis23 cal year 1999, includes 10 cities each having a popu24 lation of less than 50,000, and has a population in

25 its unincorporated areas of 190,000 or more but less
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1 than 200,000, shall thereafter remain classified as

2 an urban county.’’.

3 SEC. 402. PROHIBITION OF SET-ASIDES.

4 Section 103 of the Housing and Community Develop5 ment Act of 1974 (42 U.S.C. 5303), as amended by sec6 tion 401 of this Act, is further amended—

7 (1) by inserting after ‘‘SEC. 103.’’ the fol8 lowing: ‘‘(a) IN GENERAL.—’’; and

9 (2) by adding at the end the following new sub10 section:

11 ‘‘(b) PROHIBITION OF SET-ASIDES.—Except as pro12 vided in paragraphs (1) and (2) of section 106(a) and sec13 tion 107, amounts appropriated pursuant to subsection (a)

14 of this section or otherwise to carry out this title (other

15 than section 108) shall be used only for formula-based

16 grants allocated pursuant to section 106 and may not be

17 otherwise used unless the provision of law providing for

18 such other use specifically refers to this subsection and

19 specifically states that such provision modifies or super20 sedes the provisions of this subsection.’’.

21 SEC. 403. PUBLIC SERVICES CAP.

22 Section 105(a)(8) of the Housing and Community

23 Development Act of 1974 (42 U.S.C. 5305(a)(8)) is

24 amended by striking ‘‘fiscal years 1993’’ and all that fol25 lows through ‘‘unit of general local government’’ and in-
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1 serting the following: ‘‘fiscal years 1993 through 2006 to

2 the City of Los Angeles, the County of Los Angeles, or

3 any other unit of general local government located in the

4 County of Los Angeles, such city, such county, or each

5 such unit of general local government, respectively,’’.

6 SEC. 404. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

7 (a) ELIGIBLE ACTIVITIES.—Section 105(a) of the

8 Housing and Community Development Act of 1974 (42

9 U.S.C. 5305(a)) is amended—

10 (1) in paragraph (22)(C), by striking ‘‘and’’ at

11 the end;

12 (2) in paragraph (23), by striking the period at

13 the end and inserting a semicolon; and

14 (3) by inserting after paragraph (23) the fol15 lowing new paragraph:

16 ‘‘(24) provision of direct assistance to facilitate

17 and expand homeownership among uniformed em18 ployees (including policemen, firemen, and sanitation

19 and other maintenance workers) of, and teachers

20 who are employees of, the metropolitan city or urban

21 county (or an agency or school district serving such

22 city or county) receiving grant amounts under this

23 title pursuant to section 106(b) or the unit of gen24 eral local government (or an agency or school dis-
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1 trict serving such unit) receiving such grant

2 amounts pursuant to section 106(d), except that—

3 ‘‘(A) such assistance may only be provided

4 on behalf of such employees who are first-time

5 homebuyers under the meaning given such term

6 in section 104(14) of the Cranston-Gonzalez

7 National Affordable Housing Act (42 U.S.C.

8 12704(14)), except that, for purposes of this

9 paragraph, such section shall be applied by sub10 stituting ‘section 105(a)(24) of the Housing

11 and Community Development Act of 1974’ for

12 ‘title II’;

13 ‘‘(B) notwithstanding section

14 102(a)(20)(B) or any other provision of this

15 title, such assistance may be provided on behalf

16 of such employees whose family incomes do not

17 exceed—

18 ‘‘(i) 115 percent of the median income

19 of the area involved, as determined by the

20 Secretary with adjustments for smaller and

21 larger families; or

22 ‘‘(ii) with respect only to areas that

23 the Secretary determines have high hous24 ing costs, taking into consideration median

25 house prices and median family incomes
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1 for the area, 150 percent of the median in2 come of the area involved, as determined

3 by the Secretary with adjustments for

4 smaller and larger families;

5 ‘‘(C) such assistance shall be used only for

6 acquiring principal residences for such employ7 ees, in a manner that involves obligating

8 amounts with respect to any particular mort9 gage over a period of 1 year or less, by—

10 ‘‘(i) providing amounts for

11 downpayments on mortgages;

12 ‘‘(ii) paying reasonable closing costs

13 normally associated with the purchase of a

14 residence;

15 ‘‘(iii) obtaining pre- or post-purchase

16 counseling relating to the financial and

17 other obligations of homeownership; or

18 ‘‘(iv) subsidizing mortgage interest

19 rates; and

20 ‘‘(D) any residence purchased using assist21 ance provided under this paragraph shall be

22 subject to restrictions on resale that are—

23 ‘‘(i) established by the metropolitan

24 city, urban county, or unit of general local

25 government providing such assistance; and
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1 ‘‘(ii) determined by the Secretary to

2 be appropriate to comply with subpara3 graphs (A) and (B) of section 215(b)(3) of

4 the Cranston-Gonzalez National Affordable

5 Housing Act (42 U.S.C. 12745(b)(3)), ex6 cept that, for purposes of this paragraph,

7 such subparagraphs shall be applied by

8 substituting ‘section 105(a)(24) of the

9 Housing and Community Development Act

10 of 1974’ for ‘this title’;’’.

11 (b) PRIMARY OBJECTIVES.—Section 105(c) of the

12 Housing and Community Development Act of 1974 (42

13 U.S.C. 5305(c)) is amended by adding at the end the fol14 lowing new paragraph:

15 ‘‘(5) HOMEOWNERSHIP ASSISTANCE FOR MUNICIPAL

16 EMPLOYEES.—Notwithstanding any other provision of this

17 title, any assisted activity described in subsection (a)(24)

18 of this section shall be considered, for purposes of this

19 title, to benefit persons of low and moderate income and

20 to be directed toward the objective under section

21 101(c)(3).’’.
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1 SEC. 405. TECHNICAL AMENDMENT RELATING TO

2 BROWNFIELDS.

3 Section 105(a) of the Housing and Community De4 velopment Act of 1974 (42 U.S.C. 5305(a)), as amended

5 by section 404 of this Act, is further amended—

6 (1) in paragraph (25), by striking the period

7 and inserting ‘‘; and’’; and

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

9 paragraph:

10 ‘‘(26) environmental cleanup and economic de11 velopment activities related to Brownfields projects

12 in conjunction with the appropriate environmental

13 regulatory agencies.’’.

14 SEC. 406. INCOME ELIGIBILITY.

15 (a) IN GENERAL.—In addition to the exceptions

16 granted pursuant to section 590 of the Quality Housing

17 and Work Responsibility Act of 1998 (42 U.S.C. 5301

18 note), the Secretary of Housing and Urban Development

19 shall, for not less than 10 other jurisdictions that are met20 ropolitan cities or urban counties for purposes of title I

21 of the Housing and Community Development Act of 1974,

22 grant exceptions not later than 90 days after the date of

23 the enactment of this Act for such jurisdictions that pro24 vide that—

25 (1) for purposes of the HOME investment part26 nerships program under title II of the Cranston-
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1 Gonzalez National Affordable Housing Act, the limi2 tation based on percentage of median income that is

3 applicable under section 104(10), 214(1)(A), or

4 215(a)(1)(A) for any area of the jurisdiction shall be

5 the numerical percentage that is specified in such

6 section; and

7 (2) for purposes of the community development

8 block grant program under title I of the Housing

9 and Community Development Act of 1974, the limi10 tation based on percentage of median income that is

11 applicable pursuant to section 102(a)(20) for any

12 area within the State or unit of general local govern13 ment shall be the numerical percentage that is speci14 fied in subparagraph (A) of such section.

15 (b) SELECTION.—In selecting the jurisdictions for

16 which to grant such exceptions, the Secretary shall con17 sider the relative median income of such jurisdictions and

18 shall give preference to jurisdictions with the highest hous19 ing costs.

20 SEC. 407. HOUSING OPPORTUNITIES FOR PERSONS WITH

21 AIDS.

22 Section 863 of the Cranston-Gonzalez National Af23 fordable Housing Act (42 U.S.C. 12912) is amended to

24 read as follows:
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1 ‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There is authorized to be appropriated to carry out

3 this subtitle $275,000,000 for fiscal year 2001 and such

4 sums as may be necessary for each of fiscal years 2002,

5 2003, 2004, and 2005.’’.

6 SEC. 408. PROHIBITION ON USE OF AMOUNTS TO ACQUIRE

7 CHURCH PROPERTY.

8 Section 105 of the Housing and Community Develop9 ment Act of 1974 (42 U.S.C. 5305) is amended by adding

10 at the end the following new subsection:

11 ‘‘(i) PROHIBITION ON USE OF ASSISTANCE TO AC12 QUIRE CHURCH PROPERTY.—Notwithstanding any other

13 provision of this section, no amount from a grant under

14 section 106 may be used to carry out or assist any activity

15 if such activity, or the project for which such activity is

16 to be conducted, involves acquisition of real property

17 owned by a church that is exempt from tax under section

18 501(a) of the Internal Revenue Code of 1986 (26 U.S.C.

19 501(a)), unless the governing body of the church has pre20 viously consented to such acquisition.’’.

21 SEC. 409. CDBG SPECIAL PURPOSE GRANTS.

22 Section 107(a)(1) of the Housing and Community

23 Development Act of 1974 (42 U.S.C. 5307(a)(1)) is

24 amended—

25 (1) in the matter preceding subparagraph (A)—
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1 (A) by striking ‘‘$60,000,000’’ and insert2 ing ‘‘$95,000,000’’; and

3 (B) by striking ‘‘subsection (b)’’ and in4 serting ‘‘this section’’; and

5 (2) by striking subparagraph (G) and inserting

6 the following new subparagraph:

7 ‘‘(G) $35,000,000 shall be available in fis8 cal year 2001 for a grant to the City of

9 Youngstown, Ohio, for the site acquisition,

10 planning, architectural design, and construction

11 of a convocation and community center in such

12 city;’’.

13 TITLE V—HOME INVESTMENT

14 PARTNERSHIPS PROGRAM

15 SEC. 501. REAUTHORIZATION.

16 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

17 205 of the Cranston-Gonzalez National Affordable Hous18 ing Act (42 U.S.C. 12724) is amended to read as follows:

19 ‘‘SEC. 205. AUTHORIZATION.

20 ‘‘(a) IN GENERAL.—There is authorized to be appro21 priated to carry out this title $1,650,000,000 for fiscal

22 year 2001 and such sums as may be necessary for each

23 of fiscal years 2002, 2003, 2004, and 2005, of which—
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1 ‘‘(1) not more than $25,000,000 in each such

2 fiscal year shall be for community housing partner3 ship activities authorized under section 233; and

4 ‘‘(2) not more than $15,000,000 in each such

5 fiscal year shall be for activities in support of State

6 and local housing strategies authorized under sub7 title C, of which, in each of fiscal years 2001 and

8 2002, $3,000,000 shall be for funding grants under

9 section 246.

10 ‘‘(b) PROHIBITION OF SET-ASIDES.—Except as pro11 vided in subsection (a) of this section and section

12 217(a)(3), amounts appropriated pursuant to subsection

13 (a) of this section or otherwise to carry out this title shall

14 be used only for formula-based grants allocated pursuant

15 to section 217 and may not be otherwise used unless the

16 provision of law providing for such other use specifically

17 refers to this subsection and specifically states that such

18 provision modifies or supersedes the provisions of this sub19 section.’’.

20 (b) ALLOCATIONS OF AMOUNTS.—Section 104(19) of

21 the Cranston-Gonzalez National Affordable Housing Act

22 (42 U.S.C. 12704(19)) is amended by adding at the end

23 the following: ‘‘The term ‘city’ shall have the meaning

24 given such term in section 102(a)(5)(B) of such Act. A

25 town or township that is classified as a city by reason of
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1 subclause (II) of section 102(a)(5)(A)(B)(iii) of such Act

2 shall be treated, notwithstanding section 102(d)(1) of such

3 Act, as an entity separate from the urban county in which

4 it is located for purposes of allocation of amounts under

5 section 217 of this Act to units of general local govern6 ment from amounts made available for any fiscal year be7 ginning after the date of the enactment of the American

8 Homeownership and Economic Opportunity Act of

9 2000.’’.

10 (c) PILOT PROGRAM FOR DEVELOPING REGIONAL

11 HOUSING STRATEGIES.—Subtitle C of title II of the Cran12 ston-Gonzalez National Affordable Housing Act (42

13 U.S.C. 12781 et seq.) is amended by adding at the end

14 the following new section:

15 ‘‘SEC. 246. PILOT PROGRAM FOR DEVELOPING COM16 PREHENSIVE REGIONAL HOUSING AFFORD17 ABILITY STRATEGIES.

18 ‘‘(a) AUTHORITY.—The Secretary may, using any

19 amounts made available for grants under this section,

20 make not more than three grants for each of fiscal years

21 2001 and 2002 to consortia of units of general local gov22 ernment described in subsection (b) for costs of developing

23 and implementing comprehensive housing affordability

24 strategies on a regional basis.
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1 ‘‘(b) ELIGIBLE CONSORTIA.—A consortium of units

2 of general local government described in this subsection

3 is a consortium that—

4 ‘‘(1) is eligible under section 216(2) to be

5 deemed a unit of general local government for pur6 poses of this title;

7 ‘‘(2) consists of multiple units of general local

8 government; and

9 ‘‘(3) contains only units of general local govern10 ment that are geographically contiguous.

11 ‘‘(c) MULTI-STATE REQUIREMENT.—In each fiscal

12 year in which grants are made under this section, not less

13 than one of the consortia that receives a grant shall be

14 a consortium described in subsection (b) that includes

15 units of general local government from two or more

16 States.’’.

17 SEC. 502. ELIGIBILITY OF LIMITED EQUITY COOPERATIVES

18 AND MUTUAL HOUSING ASSOCIATIONS.

19 (a) CONGRESSIONAL FINDINGS.—Section 202(10) of

20 the Cranston-Gonzalez National Affordable Housing Act

21 (42 U.S.C. 12721(10)) is amended by inserting ‘‘mutual

22 housing associations,’’ after ‘‘limited equity cooperatives,’’.

23 (b) DEFINITIONS.—Section 104 of the Cranston24 Gonzalez National Affordable Housing Act (42 U.S.C.

25 12704) is amended—
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1 (1) by redesignating paragraph (23) as para2 graph (22);

3 (2) by redesignating paragraph (24) (relating to

4 the definition of ‘‘insular area’’) as paragraph (23);

5 and

6 (3) by adding at the end the following new

7 paragraphs:

8 ‘‘(26) The term ‘limited equity cooperative’

9 means a cooperative housing corporation which, in a

10 manner determined by the Secretary to be accept11 able, restricts income eligibility of purchasers of

12 membership shares of stock in the cooperative cor13 poration or the initial and resale price of such

14 shares, or both, so that the shares remain available

15 and affordable to low-income families.

16 ‘‘(27) The term ‘mutual housing association’

17 means a private entity that—

18 ‘‘(A) is organized under State law;

19 ‘‘(B) is described in section 501(c) of the

20 Internal Revenue Code of 1986 and exempt

21 from taxation under section 501(a) of such

22 Code;

23 ‘‘(C) owns, manages, and continuously de24 velops affordable housing by providing long-
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1 term housing for low- and moderate-income

2 families;

3 ‘‘(D) provides that eligible families who

4 purchase membership interests in the associa5 tion shall have a right to residence in a dwelling

6 unit in the housing during the period that they

7 hold such membership interest; and

8 ‘‘(E) provides for the residents of such

9 housing to participate in the ongoing manage10 ment of the housing.’’.

11 (c) ELIGIBILITY.—Section 215 of the Cranston-Gon12 zalez National Affordable Housing Act (42 U.S.C. 12745)

13 is amended—

14 (1) in subsection (b), by adding after and below

15 paragraph (4) the following:

16 ‘‘Housing that is owned by a limited equity cooperative

17 or a mutual housing association may be considered by a

18 participating jurisdiction to be housing for homeownership

19 for purposes of this title to the extent that ownership or

20 membership in such a cooperative or association, respec21 tively, constitutes homeownership under State or local

22 laws.’’; and

23 (2) in subsection (a), by adding at the end the

24 following new paragraph:
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1 ‘‘(6) LIMITED EQUITY COOPERATIVES AND MU2 TUAL HOUSING ASSOCIATIONS.—Housing that is

3 owned by a limited equity cooperative or a mutual

4 housing association may be considered by a partici5 pating jurisdiction to be rental housing for purposes

6 of this title to the extent that ownership or member7 ship in such a cooperative or association, respec8 tively, constitutes rental of a dwelling under State or

9 local laws.’’.

10 SEC. 503. ADMINISTRATIVE COSTS.

11 Section 212(c) of the Cranston-Gonzalez National Af12 fordable Housing Act (42 U.S.C. 12742(c)) is amended

13 by adding at the end the following new sentence: ‘‘A par14 ticipating jurisdiction may use amounts made available

15 under this subsection for a fiscal year for administrative

16 and planning costs by amortizing the costs of administra17 tion and planning activities under this subtitle over the

18 entire duration of such activities.’’.

19 SEC. 504. LEVERAGING AFFORDABLE HOUSING INVEST20 MENT THROUGH LOCAL LOAN POOLS.

21 (a) ELIGIBLE INVESTMENTS.—Section 212(b) of the

22 Cranston-Gonzalez National Affordable Housing Act (42

23 U.S.C. 12742(b)) is amended by inserting after ‘‘interest

24 subsidies’’ the following: ‘‘, advances to provide reserves

25 for loan pools or to provide partial loan guarantees,’’.
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1 (b) TIMELY INVESTMENT OF TRUST FUNDS.—Sec2 tion 218(e) of the Cranston-Gonzalez National Affordable

3 Housing Act (42 U.S.C. 12748) is amended to read as

4 follows:

5 ‘‘(e) INVESTMENT WITHIN 15 DAYS.—

6 ‘‘(1) IN GENERAL.—The participating jurisdic7 tion shall, not later than 15 days after funds are

8 drawn from the jurisdiction’s HOME Investment

9 Trust Fund, invest such funds, together with any in10 terest earned thereon, in the affordable housing for

11 which the funds were withdrawn.

12 ‘‘(2) LOAN POOLS.—In the case of a partici13 pating jurisdiction that withdraws Trust Fund

14 amounts for investment in the form of an advance

15 for reserves or partial loan guarantees under a pro16 gram providing such credit enhancement for loans

17 for affordable housing, the amounts shall be consid18 ered to be invested for purposes of paragraph (1)

19 upon the completion of both of the following actions:

20 ‘‘(A) Control of the amounts is transferred

21 to the program.

22 ‘‘(B) The jurisdiction and the entity oper23 ating the program enter into a written agree24 ment that—
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1 ‘‘(i) provides that such funds may be

2 used only in connection with such program;

3 ‘‘(ii) defines the terms and conditions

4 of the loan pool reserve or partial loan

5 guarantees; and

6 ‘‘(iii) provides that such entity shall

7 ensure that amounts from non-Federal

8 sources have been contributed, or are com9 mitted for contribution, to the pool avail10 able for loans for affordable housing that

11 will be backed by such reserves or loan

12 guarantees in an amount equal to 10 times

13 the amount invested from Trust Fund

14 amounts.’’.

15 (c) EXPIRATION OF RIGHT TO WITHDRAW FUNDS.—

16 Section 218(g) of the Cranston-Gonzalez National Afford17 able Housing Act (42 U.S.C. 12748(g)) is amended to

18 read as follows:

19 ‘‘(g) EXPIRATION OF RIGHT TO DRAW FUNDS.—

20 ‘‘(1) IN GENERAL.—If any funds becoming

21 available to a participating jurisdiction under this

22 title are not placed under binding commitment to af23 fordable housing within 24 months after the last day

24 of the month in which such funds are deposited in

25 the jurisdiction’s HOME Investment Trust Fund,
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1 the jurisdiction’s right to draw such funds from the

2 HOME Investment Trust Fund shall expire. The

3 Secretary shall reduce the line of credit in the par4 ticipating jurisdiction’s HOME Investment Trust

5 Fund by the expiring amount and shall reallocate

6 the funds by formula in accordance with section

7 217(d).

8 ‘‘(2) LOAN POOLS.—In the case of a partici9 pating jurisdiction that withdraws Trust Fund

10 amounts for investment in the manner provided

11 under subsection (e)(2), the amounts shall be consid12 ered to be placed under binding commitment to af13 fordable housing for purposes of paragraph (1) of

14 this subsection at the time that the amounts are ob15 ligated for use under, and are subject to, a written

16 agreement described in subsection (e)(2)(B).’’.

17 (d) TREATMENT OF MIXED INCOME LOAN POOLS AS

18 AFFORDABLE HOUSING.—

19 (1) IN GENERAL.—Section 215 of the Cran20 ston-Gonzalez National Affordable Housing Act (42

21 U.S.C. 12745) is amended by adding at the end the

22 following new subsection:

23 ‘‘(c) LOAN POOLS.—Notwithstanding subsections (a)

24 and (b), housing financed using amounts invested as pro25 vided in section 218(e)(2) shall qualify as affordable hous-
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1 ing only if the housing complies with the following require2 ments:

3 ‘‘(1) In the case of housing that is for

4 homeownership—

5 ‘‘(A) of the units financed with amounts so

6 invested—

7 ‘‘(i) not less than 75 percent are prin8 cipal residences of owners whose families

9 qualify as low-income families—

10 ‘‘(I) in the case of a contract to

11 purchase existing housing, at the time

12 of purchase;

13 ‘‘(II) in the case of a lease-pur14 chase agreement for existing housing

15 or for housing to be constructed, at

16 the time the agreement is signed; or

17 ‘‘(III) in the case of a contract to

18 purchase housing to be constructed, at

19 the time the contract is signed;

20 ‘‘(ii) all are principal residences of

21 owners whose families qualify as moderate22 income families—

23 ‘‘(I) in the case of a contract to

24 purchase existing housing, at the time

25 of purchase;
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1 ‘‘(II) in the case of a lease-pur2 chase agreement for existing housing

3 or for housing to be constructed, at

4 the time the agreement is signed; or

5 ‘‘(III) in the case of a contract to

6 purchase housing to be constructed, at

7 the time the contract is signed; and

8 ‘‘(iii) all comply with paragraphs (3)

9 and (4) of subsection (b), except that para10 graph (3) shall be applied for purposes of

11 this clause by substituting ‘subsection

12 (c)(2)(B)’ and ‘low- and moderate-income

13 homebuyers’ for ‘paragraph (2)’ and ‘low14 income homebuyers’, respectively; and

15 ‘‘(B) units made available for purchase

16 only by families who qualify as low-income fam17 ilies shall have an initial purchase price that

18 complies with the requirements of subsection

19 (b)(1).

20 ‘‘(2) In the case of housing that is for rental,

21 the housing—

22 ‘‘(A) complies with subparagraphs (D)

23 through (F) of subsection (a)(1);

24 ‘‘(B)(i) has not less than 75 percent of the

25 units occupied by households that qualify as
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1 low-income families and is occupied only by

2 households that qualify as moderate-income

3 families; or

4 ‘‘(ii) temporarily fails to comply with

5 clause (i) only because of increases in the in6 comes of existing tenants and actions satisfac7 tory to the Secretary are being taken to ensure

8 that all vacancies in the housing are being filled

9 in accordance with clause (i) until such non10 compliance is corrected; and

11 ‘‘(C) bears rents, in the case of units made

12 available for occupancy only by households that

13 qualify as low-income families, that comply with

14 the requirements of subsection (a)(1)(A).

15 Paragraphs (4) and (5) of subsection (a) shall apply

16 to housing that is subject to this subsection.’’.

17 (2) DEFINITION.—Section 104 of the Cranston18 Gonzalez National Affordable Housing Act (42

19 U.S.C. 12704), as amended by section 502 of this

20 Act, is further amended by adding at the end the

21 following new paragraph:

22 ‘‘(28) The term ‘moderate income families’

23 means families whose incomes do not exceed the me24 dian income for the area, as determined by the Sec25 retary with adjustments for smaller and larger fami-
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1 lies, except that the Secretary may establish income

2 ceilings higher or lower than the median income for

3 the area on the basis of the Secretary’s findings that

4 such variations are necessary because of prevailing

5 levels of construction costs or fair market rents, or

6 unusually high or low family incomes.’’.

7 SEC. 505. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

8 (a) ELIGIBLE ACTIVITIES.—Paragraph (2) of section

9 215(b) of the Cranston-Gonzalez National Affordable

10 Housing Act (42 U.S.C. 12745(b)(2)) is amended to read

11 as follows:

12 ‘‘(2) is the principal residence of an owner

13 who—

14 ‘‘(A) is a member of a family that qualifies

15 as a low-income family—

16 ‘‘(i) in the case of a contract to pur17 chase existing housing, at the time of pur18 chase;

19 ‘‘(ii) in the case of a lease-purchase

20 agreement for existing housing or for hous21 ing to be constructed, at the time the

22 agreement is signed; or

23 ‘‘(iii) in the case of a contract to pur24 chase housing to be constructed, at the

25 time the contract is signed; or
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1 ‘‘(B)(i) is a uniformed employee (which

2 shall include policemen, firemen, and sanitation

3 and other maintenance workers) or a teacher

4 who is an employee, of the participating juris5 diction (or an agency or school district serving

6 such jurisdiction) that is investing funds made

7 available under this subtitle to support home8 ownership of the residence; and

9 ‘‘(ii) is a member of a family whose in10 come, at the time referred to in clause (i), (ii),

11 or (iii) of subparagraph (A), as appropriate,

12 and as determined by the Secretary with ad13 justments for smaller and larger families, does

14 not exceed 115 percent of the median income of

15 the area, except that, with respect only to such

16 areas that the Secretary determines have high

17 housing costs, taking into consideration median

18 house prices and median family incomes for the

19 area, such income limitation shall be 150 per20 cent of the median income of the area, as deter21 mined by the Secretary with adjustments for

22 smaller and larger families;’’.

23 (b) INCOME TARGETING.—Section 214(2) of the

24 Cranston-Gonzalez National Affordable Housing Act (42

25 U.S.C. 12744(2)) is amended by inserting before the semi-
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1 colon the following: ‘‘or families described in section

2 215(b)(2)(B)’’.

3 (c) ELIGIBLE INVESTMENTS.—Section 212(b) of the

4 Cranston-Gonzalez National Affordable Housing Act (42

5 U.S.C. 12742(b)) is amended by adding at the end the

6 following new sentence: ‘‘Notwithstanding the preceding

7 sentence, in the case of homeownership assistance for resi8 dences of owners described in section 215(b)(2)(B), funds

9 made available under this subtitle may only be invested

10 (A) to provide amounts for downpayments on mortgages,

11 (B) to pay reasonable closing costs normally associated

12 with the purchase of a residence, (C) to obtain pre- or

13 post-purchase counseling relating to the financial and

14 other obligations of homeownership, or (D) to subsidize

15 mortgage interest rates.’’.

16 SEC. 506. USE OF SECTION 8 ASSISTANCE BY ‘‘GRAND-FAMI17 LIES’’ TO RENT DWELLING UNITS IN AS18 SISTED PROJECTS.

19 Section 215(a) of the Cranston-Gonzalez National

20 Affordable Housing Act (42 U.S.C. 12745(a)), as amend21 ed by the preceding provisions of this Act, is further

22 amended by adding at the end the following new para23 graph:

24 ‘‘(7) WAIVER OF QUALIFYING RENT.—
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1 ‘‘(A) IN GENERAL.—For the purpose of

2 providing affordable housing appropriate for

3 families described in subparagraph (B), the

4 Secretary may, upon the application of the

5 project owner, waive the applicability of sub6 paragraph (A) of paragraph (1) with respect to

7 a dwelling unit if—

8 ‘‘(i) the unit is occupied by such a

9 family, on whose behalf tenant-based as10 sistance is provided under section 8 of the

11 United States Housing Act of 1937 (42

12 U.S.C. 1437f);

13 ‘‘(ii) the rent for the unit is not great14 er than the existing fair market rent for

15 comparable units in the area, as estab16 lished by the Secretary under section 8 of

17 the United States Housing Act of 1937;

18 and

19 ‘‘(iii) the Secretary determines that

20 the waiver, together with waivers under

21 this paragraph for other dwelling units in

22 the project, will result in the use of

23 amounts described in clause (iii) in an ef24 fective manner that will improve the provi-
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1 sion of affordable housing for such fami2 lies.

3 ‘‘(B) ELIGIBLE FAMILIES.—A family de4 scribed in this subparagraph is a family that

5 consists of at least one elderly person (who is

6 the head of household) and one or more of such

7 person’s grand children, great grandchildren,

8 great nieces, great nephews, or great great

9 grandchildren (as defined by the Secretary), but

10 does not include any parent of such grand11 children, great grandchildren, great nieces,

12 great nephews, or great great grandchildren.

13 Such term includes any such grandchildren,

14 great grandchildren, great nieces, great neph15 ews, or great great grandchildren who have

16 been legally adopted by such elderly person.’’.

17 SEC. 507. LOAN GUARANTEES.

18 Subtitle A of title II of the Cranston-Gonzalez Na19 tional Affordable Housing Act (42 U.S.C. 12741 et seq.)

20 is amended by adding at the end the following new section:

21 ‘‘SEC. 227. LOAN GUARANTEES.

22 ‘‘(a) AUTHORITY.—The Secretary may, upon such

23 terms and conditions as the Secretary may prescribe,

24 guarantee and make commitments to guarantee, only to

25 such extent or in such amounts as provided in appropria-
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1 tions Acts, the notes or other obligations issued by eligible

2 participating jurisdictions or by public agencies designated

3 by and acting on behalf of eligible participating jurisdic4 tions for purposes of financing (including credit enhance5 ments and debt service reserves) the acquisition, new con6 struction, reconstruction, or moderate or substantial reha7 bilitation of affordable housing (including real property ac8 quisition, site improvement, conversion, and demolition),

9 and other related expenses (including financing costs and

10 relocation expenses of any displaced persons, families,

11 businesses, or organizations). Housing funded under this

12 section shall meet the requirements of this subtitle.

13 ‘‘(b) REQUIREMENTS.—Notes or other obligations

14 guaranteed under this section shall be in such form and

15 denominations, have such maturities, and be subject to

16 such conditions as may be prescribed by the Secretary.

17 The Secretary may not deny a guarantee under this sec18 tion on the basis of the proposed repayment period for

19 the note or other obligation, unless the period is more than

20 20 years or the Secretary determines that the period oth21 erwise causes the guarantee to constitute an unacceptable

22 financial risk.

23 ‘‘(c) LIMITATION ON TOTAL NOTES AND OBLIGA24 TIONS.—The Secretary may not guarantee or make a com25 mitment to guarantee any note or other obligation if the
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1 total outstanding notes or obligations guaranteed under

2 this section on behalf of the participating jurisdiction

3 issuing the note or obligation (excluding any amount

4 defeased under a contract entered into under subsection

5 (e)(1)) would thereby exceed an amount equal to five times

6 the amount of the participating jurisdiction’s latest alloca7 tion under section 217.

8 ‘‘(d) USE OF PROGRAM FUNDS.—Notwithstanding

9 any other provision of this subtitle, funds allocated to the

10 participating jurisdiction under this subtitle (including

11 program income derived therefrom) are authorized for use

12 in the payment of principal and interest due on the notes

13 or other obligations guaranteed pursuant to this section

14 and the payment of such servicing, underwriting, or other

15 issuance or collection charges as may be specified by the

16 Secretary.

17 ‘‘(e) SECURITY.—To assure the full repayment of

18 notes or other obligations guaranteed under this section,

19 and payment of the issuance or collection charges specified

20 by the Secretary under subsection (d), and as a prior con21 dition for receiving such guarantees, the Secretary shall

22 require the participating jurisdiction (and its designated

23 public agency issuer, if any) to—
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1 ‘‘(1) enter into a contract, in a form acceptable

2 to the Secretary, for repayment of such notes or

3 other obligations and the other specified charges;

4 ‘‘(2) pledge as security for such repayment any

5 allocation for which the participating jurisdiction

6 may become eligible under this subtitle; and

7 ‘‘(3) furnish, at the discretion of the Secretary,

8 such other security as may be deemed appropriate

9 by the Secretary in making such guarantees, which

10 may include increments in local tax receipts gen11 erated by the housing assisted under this section or

12 disposition proceeds from the sale of land or hous13 ing.

14 ‘‘(f) REPAYMENT AUTHORITY.—The Secretary may,

15 notwithstanding any other provision of this subtitle or any

16 other Federal, State, or local law, apply allocations

17 pledged pursuant to subsection (e) to any repayments due

18 the United States as a result of such guarantees.

19 ‘‘(g) FULL FAITH AND CREDIT.—The full faith and

20 credit of the United States is pledged to the payment of

21 all guarantees made under this section. Any such guar22 antee made by the Secretary shall be conclusive evidence

23 of the eligibility of the notes or other obligations for such

24 guarantee with respect to principal and interest, and the
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1 validity of any such guarantee so made shall be incontest2 able in the hands of a holder of the guaranteed obligations.

3 ‘‘(h) TAX STATUS.—With respect to any obligation

4 guaranteed pursuant to this section, the guarantee and

5 the obligation shall be designed in a manner such that the

6 interest paid on such obligation shall be included in gross

7 income for purposes of the Internal Revenue Code of

8 1986.

9 ‘‘(i) MONITORING.—The Secretary shall monitor the

10 use of guarantees under this section by eligible partici11 pating jurisdictions. If the Secretary finds that 50 percent

12 of the aggregate guarantee authority for any fiscal year

13 has been committed, the Secretary may impose limitations

14 on the amount of guarantees any one participating juris15 diction may receive during that fiscal year.

16 ‘‘(j) GUARANTEE OF TRUST CERTIFICATES.—

17 ‘‘(1) AUTHORITY.—The Secretary may, upon

18 such terms and conditions as the Secretary deems

19 appropriate, guarantee the timely payment of the

20 principal of and interest on such trust certificates or

21 other obligations as may—

22 ‘‘(A) be offered by the Secretary or by any

23 other offeror approved for purposes of this sub24 section by the Secretary; and
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1 ‘‘(B) be based on and backed by a trust or

2 pool composed of notes or other obligations

3 guaranteed or eligible for guarantee by the Sec4 retary under this section.

5 ‘‘(2) FULL FAITH AND CREDIT.—To the same

6 extent as provided in subsection (g), the full faith

7 and credit of the United States is pledged to the

8 payment of all amounts which may be required to be

9 paid under any guarantee by the Secretary under

10 this subsection.

11 ‘‘(3) SUBROGATION.—In the event the Sec12 retary pays a claim under a guarantee issued under

13 this section, the Secretary shall be subrogated fully

14 to the rights satisfied by such payment.

15 ‘‘(4) OTHER POWERS AND RIGHTS.—No State

16 or local law, and no Federal law, shall preclude or

17 limit the exercise by the Secretary of—

18 ‘‘(A) the power to contract with respect to

19 public offerings and other sales of notes, trust

20 certificates, and other obligations guaranteed

21 under this section, upon such terms and condi22 tions as the Secretary deems appropriate;

23 ‘‘(B) the right to enforce, by any means

24 deemed appropriate by the Secretary, any such

25 contract; and
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1 ‘‘(C) the Secretary’s ownership rights, as

2 applicable, in notes, certificates or other obliga3 tions guaranteed under this section, or consti4 tuting the trust or pool against which trust cer5 tificates or other obligations guaranteed under

6 this section are offered.

7 ‘‘(k) AGGREGATE LIMITATION.—The total amount of

8 outstanding obligations guaranteed on a cumulative basis

9 by the Secretary under this section shall not at any time

10 exceed $2,000,000,000.’’.

11 SEC. 508. DOWNPAYMENT ASSISTANCE FOR 2- AND 3-FAM12 ILY RESIDENCES.

13 (a) AUTHORITY.—The Secretary of Housing and

14 Urban Development shall carry out a pilot program under

15 this section under which covered jurisdictions may use

16 amounts described in subsection (b) to make loans to eligi17 ble homebuyers for use as downpayments on 2- and 3-

18 family residences.

19 (b) COVERED ASSISTANCE.—Notwithstanding sec20 tion 105 of the Housing and Community Development Act

21 of 1974 (42 U.S.C. 5305) and section 212 of the Cran22 ston-Gonzalez National Affordable Housing Act (42

23 U.S.C. 12742), a covered jurisdiction may use amounts

24 provided to the jurisdiction pursuant to section 106(b) of

25 the Housing and Community Development Act of 1974
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1 (42 U.S.C. 5406(b)) and amounts in the HOME Invest2 ment Trust Fund for the jurisdiction for downpayment

3 loans meeting the requirements of subsection (d) to home4 buyers meeting the requirements of subsection (c), but

5 only to the extent such jurisdictions agree to comply with

6 the requirements of this section, as the Secretary may re7 quire.

8 (c) ELIGIBLE HOMEBUYERS.—A homebuyer meets

9 the requirements of this subsection only if the homebuyer

10 is an individual or family—

11 (1) whose income does not exceed 80 percent of

12 the median family income for the area within which

13 the residence to be purchased with the downpayment

14 loan under subsection (d) is located; except that the

15 Secretary may, pursuant to a request by a covered

16 jurisdiction demonstrating that the jurisdiction has

17 high housing costs (taking into consideration median

18 home prices and median family incomes for the

19 area), increase the percentage limitation under this

20 paragraph to not more than 110 percent of the me21 dian family income for the area;

22 (2) who has successfully completed a program

23 regarding the responsibilities and financial manage24 ment involved in homeownership and ownership of

25 rental property that is approved by the Secretary;
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1 (3) has a satisfactory credit history and record

2 as a tenant of rental housing; and

3 (4) who, if such individual or family has an in4 come that exceeds 80 percent of the median income

5 for the area, enters into a binding agreement to

6 comply with the requirements under subsection (e)

7 (relating to affordability of other dwelling units in

8 the residence).

9 (d) NO-INTEREST DOWNPAYMENT LOANS.—A loan

10 meets the requirements of this subsection only if—

11 (1) the principal obligation of the loan—

12 (A) may be used only for a downpayment

13 for acquisition of a 2- or 3-family residence and

14 for closing costs and other costs payable at the

15 time of closing, as the Secretary shall provide;

16 and

17 (B) does not exceed the amount that is

18 equal to the sum of: (i) 7 percent of the pur19 chase price of the residence; and (ii) such clos20 ing and other costs;

21 (2) the borrower under the loan is paying, for

22 acquisition of the residence, at least 3 percent of the

23 cost of acquisition of the residence in cash or its

24 equivalent;
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1 (3) the borrower under the loan will occupy a

2 dwelling unit in the residence purchased using the

3 loan as the principal residence of the borrower;

4 (4) the loan terms—

5 (A) do not require the borrower to be pre6 qualified for a loan that finances the remainder

7 of the purchase price of a residence described in

8 paragraph (1)(A); and

9 (B) provide that the proceeds of the loan

10 are available for use (as provided in paragraph

11 (1)) only during the 4-month period beginning

12 upon the making of the loan to the borrower

13 and that such proceeds shall revert to the cov14 ered jurisdiction upon the conclusion of such

15 period if the borrower has not entered into a

16 contract for purchase of a residence meeting

17 the requirements of such paragraph before such

18 conclusion, except that the Secretary shall pro19 vide that covered jurisdictions may extend such

20 4-month period under such circumstances as

21 the Secretary shall prescribe;

22 (5) the loan terms provide for repayment of the

23 principal obligation of the loan, without interest, at

24 such time as the covered jurisdiction may provide,
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1 except that the principal obligation shall be imme2 diately repayable at the time that the borrower—

3 (A) transfers or sells the borrower’s owner4 ship interest in such residence or ceases to use

5 the residence purchased with the loan proceeds

6 as his or her principal residence; or

7 (B) obtains a subsequent loan secured by

8 such residence or any equity of the borrower in

9 such residence, the proceeds of which are not

10 used to prepay or pay off the entire balance due

11 on the existing loan secured by such residence;

12 or

13 (6) the loan terms provide that, upon sale of

14 the residence purchased with the proceeds of the

15 loan, the borrower shall repay to the covered juris16 diction (together with the principal obligation of the

17 loan repayable pursuant to paragraph (5)(A)) an ad18 ditional amount that bears the same ratio to any in19 crease in the price of the residence upon such sale

20 (compared to the price paid for the residence upon

21 purchase using such loan) as the amount of the loan

22 bears to the purchase price paid for the residence in

23 the purchase using such loan; and

24 (7) the loan complies with such other require25 ments as the Secretary may prescribe.
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1 (e) AFFORDABILITY OF RENTAL UNITS.—Any dwell2 ing units in the residence purchased using a loan provided

3 pursuant to the authority under this section to a borrower

4 described in subsection (c)(4) of this section shall be used

5 only as rental dwelling units and shall be made available

6 for rental only at a monthly rental price that does not

7 exceed the fair market rent under section 8(c)(2)(A) of

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

9 1437f(c)(2)(A)), as periodically adjusted, for a unit of the

10 applicable size located in the area in which the residence

11 is located. Compliance with this subsection shall be mon12 itored and enforced by the covered jurisdiction providing

13 the amounts for the downpayment loan under this section

14 for the purchase of such residence.

15 (f) DEFINITIONS.—For purposes of this section, the

16 following definitions shall apply:

17 (1) COVERED JURISDICTION.—The term ‘‘cov18 ered jurisdiction’’ means, with respect to a fiscal

19 year—

20 (A) a metropolitan city or urban county

21 that receives a grant for such fiscal year pursu22 ant to section 106(b) of the Housing and Com23 munity Development Act of 1974 (42 U.S.C.

24 5306(b)); or
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1 (B) a jurisdiction that is a participating

2 jurisdiction for such fiscal year for purposes of

3 the HOME Investment Partnerships Act (42

4 U.S.C. 12721 et seq.).

5 (2) SECRETARY.—The term ‘‘Secretary’’ means

6 the Secretary of Housing and Urban Development.

7 TITLE VI—LOCAL

8 HOMEOWNERSHIP INITIATIVES

9 SEC. 601. REAUTHORIZATION OF NEIGHBORHOOD REIN10 VESTMENT CORPORATION.

11 Section 608(a)(1) of the Neighborhood Reinvestment

12 Corporation Act (42 U.S.C. 8107(a)(1)) is amended by

13 striking the first sentence and inserting the following:

14 ‘‘There is authorized to be appropriated to the corporation

15 to carry out this title $95,000,000 for fiscal year 2001

16 and such sums as may be necessary for each of fiscal years

17 2002 through 2005. Of the amounts appropriated to the

18 corporation for fiscal year 2001, $5,000,000 shall be avail19 able only for the corporation to provide assistance under

20 duplex homeownership programs established before the

21 date of the enactment of the American Homeownership

22 and Economic Opportunity Act of 2000 through

23 Neighborworks Homeownership Center pilot projects es24 tablished before such date of the enactment.’’.
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1 SEC. 602. HOMEOWNERSHIP ZONES.

2 Section 186 of the Housing and Community Develop3 ment Act of 1992 (42 U.S.C. 12898a) is amended to read

4 as follows:

5 ‘‘SEC. 186. HOMEOWNERSHIP ZONE GRANTS.

6 ‘‘(a) AUTHORITY.—The Secretary of Housing and

7 Urban Development may make grants to units of general

8 local government to assist homeownership zones. Home9 ownership zones are contiguous, geographically defined

10 areas, primarily residential in nature, in which large-scale

11 development projects are designed to reclaim distressed

12 neighborhoods by creating homeownership opportunities

13 for low- and moderate-income families. Projects in home14 ownership zones are intended to serve as a catalyst for

15 private investment, business creation, and neighborhood

16 revitalization.

17 ‘‘(b) ELIGIBLE ACTIVITIES.—Amounts made avail18 able under this section may be used for projects that in19 clude any of the following activities in the homeownership

20 zone:

21 ‘‘(1) Acquisition, construction, and rehabilita22 tion of housing.

23 ‘‘(2) Site acquisition and preparation, including

24 demolition, construction, reconstruction, or installa25 tion of public and other site improvements and utili26 ties directly related to the homeownership zone.
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1 ‘‘(3) Direct financial assistance to homebuyers.

2 ‘‘(4) Homeownership counseling.

3 ‘‘(5) Relocation assistance.

4 ‘‘(6) Marketing costs, including affirmative

5 marketing activities.

6 ‘‘(7) Other project-related costs.

7 ‘‘(8) Reasonable administrative costs (up to 5

8 percent of the grant amount).

9 ‘‘(9) Other housing-related activities proposed

10 by the applicant as essential to the success of the

11 homeownership zone and approved by the Secretary.

12 ‘‘(c) APPLICATION.—To be eligible for a grant under

13 this section, a unit of general local government shall sub14 mit an application for a homeownership zone grant in such

15 form and in accordance with such procedures as the Sec16 retary shall establish.

17 ‘‘(d) SELECTION CRITERIA.—The Secretary shall se18 lect applications for funding under this section through

19 a national competition, using selection criteria established

20 by the Secretary, which shall include—

21 ‘‘(1) the degree to which the proposed activities

22 will result in the improvement of the economic, so23 cial, and physical aspects of the neighborhood and

24 the lives of its residents through the creation of new

25 homeownership opportunities;
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1 ‘‘(2) the levels of distress in the homeownership

2 zone as a whole, and in the immediate neighborhood

3 of the project for which assistance is requested;

4 ‘‘(3) the financial soundness of the plan for fi5 nancing homeownership zone activities;

6 ‘‘(4) the leveraging of other resources; and

7 ‘‘(5) the capacity to successfully carry out the

8 plan.

9 The Secretary may not treat any application for a grant

10 under this section adversely in any manner solely on the

11 basis that the homeownership zone is located, in whole or

12 in part, within unincorporated areas.

13 ‘‘(e) GRANT APPROVAL AMOUNTS.—The Secretary

14 may establish a maximum amount for any grant for any

15 funding round under this section. A grant may not be

16 made in an amount that exceeds the amount that the Sec17 retary determines is necessary to fund the project for

18 which the application is made.

19 ‘‘(f) PROGRAM REQUIREMENTS.—A homeownership

20 zone proposal shall—

21 ‘‘(1) provide for a significant number of new

22 homeownership opportunities that will make a visible

23 improvement in an immediate neighborhood;
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1 ‘‘(2) not be inconsistent with such planning and

2 design principles as may be prescribed by the Sec3 retary;

4 ‘‘(3) be designed to stimulate additional invest5 ment in that area;

6 ‘‘(4) provide for partnerships with persons or

7 entities in the private and nonprofit sectors;

8 ‘‘(5) incorporate a comprehensive approach to

9 revitalization of the neighborhood;

10 ‘‘(6) establish a detailed time-line for com11 mencement and completion of construction activities;

12 and

13 ‘‘(7) provide for affirmatively furthering fair

14 housing.

15 ‘‘(g) INCOME TARGETING.—At least 51 percent of

16 the homebuyers assisted with funds under this section

17 shall have household incomes at or below 80 percent of

18 median income for the area, as determined by the Sec19 retary.

20 ‘‘(h) ENVIRONMENTAL REVIEW.—For purposes of

21 environmental review, decisionmaking, and action pursu22 ant to the National Environmental Policy Act of 1969 and

23 other provisions of law that further the purposes of such

24 Act, a grant under this section shall be treated as assist25 ance under the HOME Investment Partnerships Act and
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1 shall be subject to the regulations issued by the Secretary

2 to implement section 288 of such Act.

3 ‘‘(i) REVIEW, AUDIT, AND REPORTING.—The Sec4 retary shall make such reviews and audits and establish

5 such reporting requirements as may be necessary or ap6 propriate to determine whether the grantee has carried out

7 its activities in a timely manner and in accordance with

8 the requirements of this section. The Secretary may ad9 just, reduce, or withdraw amounts made available, or take

10 other action as appropriate, in accordance with the Sec11 retary’s performance reviews and audits under this sec12 tion.

13 ‘‘(j) AUTHORIZATION.—There is authorized to be ap14 propriated to carry out this section $25,000,000 for fiscal

15 year 2001 and such sums as may be necessary for fiscal

16 year 2002, to remain available until expended.’’.

17 SEC. 603. LEASE-TO-OWN.

18 (a) SENSE OF THE CONGRESS.—It is the sense of the

19 Congress that residential tenancies under lease-to-own

20 provisions can facilitate homeownership by low- and mod21 erate-income families and provide opportunities for home22 ownership for such families who might not otherwise be

23 able to afford homeownership.

24 (b) REPORT.—Not later than the expiration of the

25 3-month period beginning on the date of the enactment
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1 of this Act, the Secretary of Housing and Urban Develop2 ment shall submit a report to the Congress—

3 (1) analyzing whether lease-to-own provisions

4 can be effectively incorporated within the HOME in5 vestment partnerships program, the public housing

6 program, the tenant-based rental assistance program

7 under section 8 of the United States Housing Act of

8 1937, or any other programs of the Department to

9 facilitate homeownership by low- or moderate-income

10 families; and

11 (2) any legislative or administrative changes

12 necessary to alter or amend such programs to allow

13 the use of lease-to-own options to provide home14 ownership opportunities.

15 SEC. 604. LOCAL CAPACITY BUILDING.

16 Section 4 of the HUD Demonstration Act of 1993

17 (42 U.S.C. 9816 note) is amended—

18 (1) in subsection (a), by inserting ‘‘National

19 Association of Housing Partnerships,’’ after ‘‘Hu20 manity,’’; and

21 (2) in subsection (e), by striking ‘‘$25,000,000’’

22 and all that follows and inserting ‘‘, for each fiscal

23 year, such sums as may be necessary to carry out

24 this section.’’.
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1 SEC. 605. CONSOLIDATED APPLICATION AND PLANNING

2 REQUIREMENT AND SUPER-NOFA.

3 (a) CONSOLIDATED APPLICATION.—Section 106 of

4 the Cranston-Gonzalez National Affordable Housing Act

5 (42 U.S.C. 12706) is amended to read as follows:

6 ‘‘SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY

7 PLANNING AND DEVELOPMENT PROGRAMS.

8 ‘‘(a) REQUIREMENT.—The Secretary shall, by regula9 tion, provide for jurisdictions to comply with the planning

10 and application requirements under the covered programs

11 under subsection (b) by submitting to the Secretary, for

12 a program year, a single consolidated submission under

13 this section that complies with the requirements for plan14 ning and application submissions under the laws relating

15 to the covered programs and shall serve, for the jurisdic16 tion, as the planning document and an application for

17 funding under the covered programs.

18 ‘‘(b) COVERED PROGRAMS.—The covered programs

19 under this subsection are the following programs:

20 ‘‘(1) The HOME investment partnerships pro21 gram under title II of this Act (42 U.S.C. 12721 et

22 seq.).

23 ‘‘(2) The community development block grant

24 program under title I of the Housing and Commu25 nity Development Act of 1974 (42 U.S.C. 5301 et

26 seq.).
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1 ‘‘(3) The economic development initiative pro2 gram under section 108(q) of the Housing and Com3 munity Development Act of 1974 (42 U.S.C.

4 5308(q)).

5 ‘‘(4) The emergency shelter grants program

6 under subtitle B of title IV of the Stewart B.

7 McKinney Homeless Assistance Act (42 U.S.C.

8 11371 et seq.).

9 ‘‘(5) The housing opportunities for persons with

10 AIDS program under subtitle D of title VIII of the

11 Cranston-Gonzalez National Affordable Housing Act

12 (42 U.S.C. 12901 et seq.).

13 ‘‘(c) PROGRAM YEAR.—In establishing requirements

14 for a consolidated submission under this section, the Sec15 retary shall provide for a consolidated program year,

16 which shall comply with the various application and review

17 deadlines under the covered programs.

18 ‘‘(d) ADEQUACY OF EXISTING REGULATIONS.—The

19 regulations of the Secretary relating to consolidated sub20 missions for community planning and development pro21 grams, part 91 of title 24, Code of Federal Regulations,

22 as in effect on March 1, 1999, shall be considered to be

23 sufficient to comply with this section, except to the extent

24 that the program referred to in paragraph (3) of sub25 section (b) is not covered by such regulations.
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1 ‘‘(e) CONSISTENCY.—The Secretary shall, by regula2 tion or otherwise, as deemed by the Secretary to be appro3 priate, require any application for housing assistance

4 under title II of this Act, assistance under the Housing

5 and Community Development Act of 1974, or assistance

6 under the Stewart B. McKinney Homeless Assistance Act,

7 to contain or be accompanied by a certification by an ap8 propriate State or local public official that the proposed

9 housing activities are consistent with the housing strategy

10 of the jurisdiction to be served.’’.

11 (b) SUPER-NOFA.—The Department of Housing

12 and Urban Development Act is amended by inserting after

13 section 12 (42 U.S.C. 3537a) the following new section:

14 ‘‘SEC. 13. NOTICE OF FUNDING AVAILABILITY.

15 ‘‘(a) REQUIREMENT.—In making amounts for a fiscal

16 year under the covered programs under subsection (b)

17 available to applicants, the Secretary shall issue a consoli18 dated notice of funding availability that—

19 ‘‘(1) applies to as many of the covered pro20 grams as the Secretary determines is practicable;

21 ‘‘(2) simplifies the application process for fund22 ing under such programs by providing for applica23 tion under various covered programs through a sin24 gle, unified application;
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1 ‘‘(3) promotes comprehensive approaches to

2 housing and community development by providing

3 for applicants to identify coordination of efforts

4 under various covered programs; and

5 ‘‘(4) clearly informs prospective applicants of

6 the general and specific requirements under law for

7 applying for funding under such programs.

8 ‘‘(b) COVERED PROGRAMS.—The covered programs

9 under this subsection are the programs that are adminis10 tered by the Secretary and identified by the Secretary for

11 purposes of this section, in the following areas:

12 ‘‘(1) Housing and community development pro13 grams.

14 ‘‘(2) Economic development and empowerment

15 programs.

16 ‘‘(3) Targeted housing assistance and homeless

17 assistance programs.’’.

18 SEC. 606. ASSISTANCE FOR SELF-HELP HOUSING PRO19 VIDERS.

20 (a) REAUTHORIZATION.—Subsection (p) of section

21 11 of the Housing Opportunity Program Extension Act

22 of 1996 (42 U.S.C. 12805 note) is amended to read as

23 follows:

24 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—There

25 is authorized to be appropriated to carry out this section
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1 $25,000,000 for fiscal year 2001 and such sums as may

2 be necessary for each of fiscal years 2002 and 2003.’’.

3 (b) ELIGIBLE EXPENSES.—Section 11(d)(2)(A) of

4 the Housing Opportunity Program Extension Act of 1996

5 (42 U.S.C. 12805 note) is amended by inserting before

6 the period at the end the following: ‘‘, which may include

7 reimbursing an organization, consortium, or affiliate, upon

8 approval of any required environmental review, for

9 nongrant amounts of the organization, consortium, or af10 filiate advanced before such review to acquire land’’.

11 (c) DEADLINE FOR RECAPTURE OF FUNDS.—Section

12 11 of the Housing Opportunity Program Extension Act

13 of 1996 (42 U.S.C. 12805 note) is amended—

14 (1) in subsection (i)(5)—

15 (A) by striking ‘‘if the organization or con16 sortia has not used any grant amounts’’ and in17 serting ‘‘the Secretary shall recapture any grant

18 amounts provided to the organization or con19 sortia that are not used’’;

20 (B) by striking ‘‘(or,’’ and inserting ‘‘, ex21 cept that such period shall be 36 months’’; and

22 (C) by striking ‘‘within 36 months), the

23 Secretary shall recapture such unused

24 amounts’’ and inserting ‘‘and in the case of a

25 grant amounts provided to a local affiliate of
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1 the organization or consortia that is developing

2 five or more dwellings in connection with such

3 grant amounts’’; and

4 (2) in subsection (j), by inserting after ‘‘carry

5 out this section’’ the following: ‘‘and grant amounts

6 provided to a local affiliate of the organization or

7 consortia that is developing five or more dwellings in

8 connection with such grant amounts’’.

9 (d) TECHNICAL CORRECTIONS.—Section 11 of the

10 Housing Opportunity Program Extension Act of 1996 (42

11 U.S.C. 12805 note) is amended—

12 (1) in subsection (b)(4), by striking ‘‘Habitat

13 for Humanity International, its affiliates, and

14 other’’; and

15 (2) in subsection (e)(2), by striking ‘‘consoria’’

16 and inserting ‘‘consortia’’.

17 SEC. 607. HOUSING COUNSELING ORGANIZATIONS.

18 (a) EXTENSION OF PROGRAMS.—

19 (1) EMERGENCY HOMEOWNERSHIP COUN20 SELING.—Section 106(c)(9) of the Housing and

21 Urban Development Act of 1968 (12 U.S.C.

22 1701x(c)(9)) is amended by striking ‘‘September 30,

23 2000’’ and inserting ‘‘September 30, 2005’’.

24 (2) PREPURCHASE AND FORECLOSURE PREVEN25 TION COUNSELING DEMONSTRATION.—Section
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1 106(d)(12) of the Housing and Urban Development

2 Act of 1968 (12 U.S.C. 1701x(d)(12)) is amended

3 by striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal

4 year 2005’’.

5 (b) COOPERATIVE OWNERSHIP HOUSING CORPORA6 TIONS.—Section 106 of the Housing and Urban Develop7 ment Act of 1968 (12 U.S.C. 1701x) is amended—

8 (1) in subsection (a)(1)(ii), by inserting ‘‘and

9 cooperative housing’’ before the semicolon at the

10 end; and

11 (2) in subsection (c)—

12 (A) in paragraph (1)—

13 (i) in subparagraph (A), by striking

14 ‘‘and’’ at the end;

15 (ii) in subparagraph (B), by striking

16 the period at the end and inserting a semi17 colon; and

18 (iii) by adding at the end the fol19 lowing new subparagraph:

20 ‘‘(C) to the National Cooperative Bank De21 velopment Corporation—

22 ‘‘(i) to provide homeownership coun23 seling to eligible homeowners that is spe24 cifically designed to relate to ownership
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1 under cooperative housing arrangements;

2 and

3 ‘‘(ii) to assist in the establishment

4 and operation of well-managed and viable

5 cooperative housing boards.’’;

6 (B) in paragraph (4)(A), by inserting be7 fore the semicolon at the end the following: ‘‘or,

8 in the case of a home loan made to finance the

9 purchase of stock or membership in a coopera10 tive ownership housing corporation, by the stock

11 or membership interest’’; and

12 (C) in paragraph (6)(C), by adding before

13 the period at the end the following: ‘‘and in14 cludes a loan that is secured by a first lien

15 given in accordance with the laws of the State

16 where the property is located and that is made

17 to finance the purchase of stock or membership

18 in a cooperative ownership housing corporation

19 the permanent occupancy of dwelling units of

20 which is restricted to members of such corpora21 tion, where the purchase of such stock or mem22 bership will entitle the purchaser to the perma23 nent occupancy of one of such units’’.
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1 SEC. 608. COMMUNITY LEAD INFORMATION CENTERS AND

2 LEAD-SAFE HOUSING.

3 Section 1011(e) of the Residential Lead-Based Paint

4 Hazard Reduction Act of 1992 (42 U.S.C. 4852(e)) is

5 amended—

6 (1) in paragraph (7), by inserting ‘‘, which may

7 include leasing of lead-safe temporary housing’’ be8 fore the semicolon at the end;

9 (2) in paragraph (9), by striking ‘‘and’’ at the

10 end;

11 (3) by redesignating paragraph (10) as para12 graph (11); and

13 (4) by inserting after paragraph (9) the fol14 lowing new paragraph:

15 ‘‘(10) provide accessible information through

16 centralized locations that provide a variety of resi17 dential lead-based paint poisoning prevention serv18 ices to the community that such services are in19 tended to benefit; and’’.

20 SEC. 609. GRANT ELIGIBILITY OF COMMUNITY ORGANIZA21 TIONS.

22 (a) ELIGIBILITY.—For any program administered by

23 the Secretary of Housing and Urban Development under

24 which financial assistance is provided by the Secretary to

25 nongovernmental organizations or to a State or local gov26 ernment for provision to nongovernmental organizations,
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1 religious organizations shall be eligible, on the same basis

2 as other nongovernmental organizations, to receive the fi3 nancial assistance under the program from the Secretary

4 or such State and local governments, as the case may be,

5 as long as the program is implemented in a manner con6 sistent with the Establishment Clause of the Free Exercise

7 Clause of the first amendment to the Constitution. Neither

8 the Secretary nor a State or local government to which

9 such financial assistance is provided shall discriminate

10 against an organization that receives financial assistance,

11 or applies to receive assistance, under a program adminis12 tered by the Secretary, on the basis that the organization

13 has a religious character.

14 (b) RELIGIOUS CHARACTER AND INDEPENDENCE.—

15 (1) IN GENERAL.—A religious organization that

16 receives assistance under a program described in

17 subsection (a) shall retain its religious character and

18 control over the definition, development, practice,

19 and expression of its religious beliefs.

20 (2) ADDITIONAL SAFEGUARDS.—Neither the

21 Federal Government nor a State or local government

22 shall require a religious organization—

23 (A) to alter its form of internal govern24 ance; or
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1 (B) to remove religious art, icons, scrip2 ture, or other symbols,

3 in order to be eligible to provide assistance under a

4 program described in subsection (a).

5 (3) EMPLOYMENT PRACTICES.—A religious or6 ganization’s exemption provided under section 702

7 of the Civil Rights Act of 1964 (42 U.S.C. 2000e8 1) regarding employment practices shall not be af9 fected by its participation in, or receipt of funds

10 from, programs described in subsection (a).

11 (c) LIMITATIONS ON USE OF FUNDS FOR CERTAIN

12 PURPOSES.—No funds provided directly to a religious or13 ganization to provide assistance under any program de14 scribed in subsection (a) shall be expended for sectarian

15 worship, instruction, or proselytization.

16 (d) FISCAL ACCOUNTABILITY.—

17 (1) IN GENERAL.—Except as provided in para18 graph (2), any religious organization providing as19 sistance under any program described in subsection

20 (a) shall be subject to the same regulations as other

21 nongovernmental organizations to account in accord

22 with generally accepted accounting principles for the

23 use of such funds provided under such program.

24 (2) LIMITED AUDIT.—Such organization shall

25 segregate government funds provided under such
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1 program into a separate account. Only the govern2 ment funds shall be subject to audit by the govern3 ment.

4 (e) TREATMENT OF ELIGIBLE ENTITIES AND OTHER

5 INTERMEDIATE ORGANIZATIONS.—If an eligible entity or

6 other organization (referred to in this subsection as an

7 ‘‘intermediate organization’’), acting under a contract, or

8 grant or other agreement, with the Federal Government

9 or a State or local government, is given the authority

10 under the contract or agreement to select nongovern11 mental organizations to provide assistance under the pro12 grams described in subsection (a), the intermediate orga13 nization shall have the same duties under this section as

14 the government.

15 (f) DEFINITIONS.—For purposes of this section:

16 (1) FINANCIAL ASSISTANCE.—The term ‘‘finan17 cial assistance’’ means any grant, loan, subsidy,

18 guarantee, or other financial assistance, except that

19 such term does not include any mortgage insurance

20 provided under a program administered by the Sec21 retary.

22 (2) SECRETARY.—The term ‘‘Secretary’’ means

23 the Secretary of Housing and Urban Development.
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1 TITLE VII—NATIVE AMERICAN

2 HOMEOWNERSHIP

3 Subtitle A—Native American

4 Housing

5 SEC. 701. LANDS TITLE REPORT COMMISSION.

6 (a) ESTABLISHMENT.—Subject to sums being pro7 vided in advance in appropriations Acts, there is estab8 lished a Commission to be known as the Lands Title Re9 port Commission (hereafter in this section referred to as

10 the ‘‘Commission’’) to facilitate home loan mortgages on

11 Indian trust lands. The Commission will be subject to

12 oversight by the Committee on Banking and Financial

13 Services of the House of Representatives and the Com14 mittee on Banking, Housing, and Urban Affairs of the

15 Senate.

16 (b) MEMBERSHIP.—

17 (1) APPOINTMENT.—The Commission shall be

18 composed of 12 members, appointed not later than

19 90 days after the date of the enactment of this Act

20 as follows:

21 (A) Four members shall be appointed by

22 the President.

23 (B) Four members shall be appointed by

24 the Chairperson of the Committee on Banking
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1 and Financial Services of the House of Rep2 resentatives.

3 (C) Four members shall be appointed by

4 the Chairperson of the Committee on Banking,

5 Housing, and Urban Affairs of the Senate.

6 (2) QUALIFICATIONS.—

7 (A) MEMBERS OF TRIBES.—At all times,

8 not less than eight of the members of the Com9 mission shall be members of federally recog10 nized Indian tribes.

11 (B) EXPERIENCE IN LAND TITLE MAT12 TERS.—All members of the Commission shall

13 have experience in and knowledge of land title

14 matters relating to Indian trust lands.

15 (3) CHAIRPERSON.—The Chairperson of the

16 Commission shall be one of the members of the

17 Commission appointed under paragraph (1)(C), as

18 elected by the members of the Commission.

19 (4) VACANCIES.—Any vacancy on the Commis20 sion shall not affect its powers, but shall be filled in

21 the manner in which the original appointment was

22 made.

23 (5) TRAVEL EXPENSES.—Members of the Com24 mission shall serve without pay, but each member

25 shall receive travel expenses, including per diem in
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1 lieu of subsistence, in accordance with sections 5702

2 and 5703 of title 5, United States Code.

3 (c) INITIAL MEETING.—The Chairperson of the Com4 mission shall call the initial meeting of the Commission.

5 Such meeting shall be held within 30 days after the Chair6 person of the Commission determines that sums sufficient

7 for the Commission to carry out its duties under this Act

8 have been appropriated for such purpose.

9 (d) DUTIES.—The Commission shall analyze the sys10 tem of the Bureau of Indian Affairs of the Department

11 of the Interior for maintaining land ownership records and

12 title documents and issuing certified title status reports

13 relating to Indian trust lands and, pursuant to such anal14 ysis, determine how best to improve or replace the

15 system—

16 (1) to ensure prompt and accurate responses to

17 requests for title status reports;

18 (2) to eliminate any backlog of requests for title

19 status reports; and

20 (3) to ensure that the administration of the sys21 tem will not in any way impair or restrict the ability

22 of Native Americans to obtain conventional loans for

23 purchase of residences located on Indian trust lands,

24 including any actions necessary to ensure that the

25 system will promptly be able to meet future demands
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1 for certified title status reports, taking into account

2 the anticipated complexity and volume of such re3 quests.

4 (e) REPORT.—Not later than the date of the termi5 nation of the Commission under subsection (h), the Com6 mission shall submit a report to the Committee on Bank7 ing and Financial Services of the House of Representa8 tives and the Committee on Banking, Housing, and Urban

9 Affairs of the Senate describing the analysis and deter10 minations made pursuant to subsection (d).

11 (f) POWERS.—

12 (1) HEARINGS AND SESSIONS.—The Commis13 sion may, for the purpose of carrying out this sec14 tion, hold hearings, sit and act at times and places,

15 take testimony, and receive evidence as the Commis16 sion considers appropriate.

17 (2) STAFF OF FEDERAL AGENCIES.—Upon re18 quest of the Commission, the head of any Federal

19 department or agency may detail, on a reimbursable

20 basis, any of the personnel of that department or

21 agency to the Commission to assist it in carrying out

22 its duties under this section.

23 (3) OBTAINING OFFICIAL DATA.—The Commis24 sion may secure directly from any department or

25 agency of the United States information necessary
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1 to enable it to carry out this section. Upon request

2 of the Chairperson of the Commission, the head of

3 that department or agency shall furnish that infor4 mation to the Commission.

5 (4) MAILS.—The Commission may use the

6 United States mails in the same manner and under

7 the same conditions as other departments and agen8 cies of the United States.

9 (5) ADMINISTRATIVE SUPPORT SERVICES.—

10 Upon the request of the Commission, the Adminis11 trator of General Services shall provide to the Com12 mission, on a reimbursable basis, the administrative

13 support services necessary for the Commission to

14 carry out its duties under this section.

15 (6) STAFF.—The Commission may appoint per16 sonnel as it considers appropriate, subject to the

17 provisions of title 5, United States Code, governing

18 appointments in the competitive service, and shall

19 pay such personnel in accordance with the provisions

20 of chapter 51 and subchapter III of chapter 53 of

21 that title relating to classification and General

22 Schedule pay rates.

23 (g) AUTHORIZATION OF APPROPRIATIONS.—To carry

24 out this section, there is authorized to be appropriated
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1 $500,000. Such sums shall remain available until ex2 pended.

3 (h) TERMINATION.—The Commission shall terminate

4 1 year after the date of the initial meeting of the Commis5 sion.

6 SEC. 702. LOAN GUARANTEES.

7 Section 184(i) of the Housing and Community Devel8 opment Act of 1992 (12 U.S.C. 1715z–13a(i)) is

9 amended—

10 (1) in paragraph (5), by striking subparagraph

11 (C) and inserting the following new subparagraph:

12 ‘‘(C) LIMITATION ON OUTSTANDING AG13 GREGATE PRINCIPAL AMOUNT.—Subject to the

14 limitations in subparagraphs (A) and (B), the

15 Secretary may enter into commitments to guar16 antee loans under this section in each fiscal

17 year with an aggregate outstanding principal

18 amount not exceeding such amount as may be

19 provided in appropriation Acts for such fiscal

20 year.’’; and

21 (2) in paragraph (7), by striking ‘‘each of fiscal

22 years 1997, 1998, 1999, 2000, and 2001’’ and in23 serting ‘‘each fiscal year’’.

24 SEC. 703. NATIVE AMERICAN HOUSING ASSISTANCE.

25 (a) RESTRICTION ON WAIVER AUTHORITY.—
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1 (1) IN GENERAL.—Section 101(b)(2) of the Na2 tive American Housing Assistance and Self-Deter3 mination Act of 1996 (25 U.S.C. 4111(b)(2)) is

4 amended by striking ‘‘if the Secretary’’ and all that

5 follows through the period at the end and inserting

6 the following: ‘‘for a period of not more than 90

7 days, if the Secretary determines that an Indian

8 tribe has not complied with, or is unable to comply

9 with, those requirements due to exigent cir10 cumstances beyond the control of the Indian tribe.’’.

11 (2) LOCAL COOPERATION AGREEMENT.—Sec12 tion 101(c) of the Native American Housing Assist13 ance and Self-Determination Act of 1996 (25 U.S.C.

14 4111(c)) is amended by adding at the end the fol15 lowing: ‘‘The Secretary may waive the requirements

16 of this subsection and subsection (d) if the recipient

17 has made a good faith effort to fulfill the require18 ments of this subsection and subsection (d) and

19 agrees to make payments in lieu of taxes to the ap20 propriate taxing authority in an amount consistent

21 with the requirements of subsection (d)(2) until such

22 time as the matter of making such payments has

23 been resolved in accordance with subsection (d).’’.

24 (b) ASSISTANCE TO FAMILIES THAT ARE NOT LOW25 INCOME.—Section 102(c) of the Native American Housing
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1 Assistance and Self-Determination Act of 1996 (25 U.S.C.

2 4112(c)) is amended by adding at the end the following:

3 ‘‘(6) CERTAIN FAMILIES.—With respect to as4 sistance provided under section 201(b)(2) by a re5 cipient to Indian families that are not low-income

6 families, evidence that there is a need for housing

7 for each such family during that period that cannot

8 reasonably be met without such assistance.’’.

9 (c) ELIMINATION OF WAIVER AUTHORITY FOR

10 SMALL TRIBES.—Section 102 of the Native American

11 Housing Assistance and Self-Determination Act of 1996

12 (25 U.S.C. 4112) is amended—

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

14 (2) by redesignating subsection (g) as sub15 section (f).

16 (d) ENVIRONMENTAL COMPLIANCE.—Section 105 of

17 the Native American Housing Assistance and Self-Deter18 mination Act of 1996 (25 U.S.C. 4115) is amended by

19 adding at the end the following:

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

21 may waive the requirements under this section if the Sec22 retary determines that a failure on the part of a recipient

23 to comply with provisions of this section—

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

25 Environmental Policy Act of 1969 (42 U.S.C. 4331
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1 et seq.) or any other provision of law that furthers

2 the goals of that Act;

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

4 the community involved by posing an immediate or

5 long-term hazard to residents of that community;

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

7 an incorrect or incomplete certification provided

8 under subsection (c)(1); and

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

10 of the recipient.’’.

11 (e) ELIGIBILITY OF LAW ENFORCEMENT OFFICERS

12 FOR HOUSING ASSISTANCE.—Section 201(b) of the Na13 tive American Housing Assistance and Self-Determination

14 Act of 1996 (25 U.S.C. 4131(b)) is amended—

15 (1) in paragraph (1), by striking ‘‘paragraph

16 (2)’’ and inserting ‘‘paragraphs (2) and (4)’’;

17 (2) by redesignating paragraphs (4) and (5) as

18 paragraphs (5) and (6), respectively; and

19 (3) by inserting after paragraph (3) the fol20 lowing new paragraph:

21 ‘‘(4) LAW ENFORCEMENT OFFICERS.—A recipi22 ent may provide housing or housing assistance pro23 vided through affordable housing activities assisted

24 with grant amounts under this Act for a law en-
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1 forcement officer on an Indian reservation or other

2 Indian area, if—

3 ‘‘(A) the officer—

4 ‘‘(i) is employed on a full-time basis

5 by the Federal Government or a State,

6 county, or tribal government; and

7 ‘‘(ii) in implementing such full-time

8 employment, is sworn to uphold, and make

9 arrests for, violations of Federal, State,

10 county, or tribal law; and

11 ‘‘(B) the recipient determines that the

12 presence of the law enforcement officer on the

13 Indian reservation or other Indian area may

14 deter crime.’’.

15 (f) OVERSIGHT.—

16 (1) REPAYMENT.—Section 209 of the Native

17 American Housing Assistance and Self-Determina18 tion Act of 1996 (25 U.S.C. 4139) is amended to

19 read as follows:

20 ‘‘SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING

21 REQUIREMENT.

22 ‘‘If a recipient uses grant amounts to provide afford23 able housing under this title, and at any time during the

24 useful life of the housing the recipient does not comply

25 with the requirement under section 205(a)(2), the Sec-
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1 retary shall take appropriate action under section

2 401(a).’’.

3 (2) AUDITS AND REVIEWS.—Section 405 of the

4 Native American Housing Assistance and Self-De5 termination Act of 1996 (25 U.S.C. 4165) is amend6 ed to read as follows:

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

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

9 31, UNITED STATES CODE.—An entity designated by an

10 Indian tribe as a housing entity shall be treated, for pur11 poses of chapter 75 of title 31, United States Code, as

12 a non-Federal entity that is subject to the audit require13 ments that apply to non-Federal entities under that chap14 ter.

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

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

17 review under subsection (a), to the extent the Sec18 retary determines such action to be appropriate, the

19 Secretary may conduct an audit or review of a re20 cipient in order to—

21 ‘‘(A) determine whether the recipient—

22 ‘‘(i) has carried out—

23 ‘‘(I) eligible activities in a timely

24 manner; and
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1 ‘‘(II) eligible activities and cer2 tification in accordance with this Act

3 and other applicable law;

4 ‘‘(ii) has a continuing capacity to

5 carry out eligible activities in a timely

6 manner; and

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

8 housing plan of the recipient; and

9 ‘‘(B) verify the accuracy of information

10 contained in any performance report submitted

11 by the recipient under section 404.

12 ‘‘(2) ON-SITE VISITS.—To the extent prac13 ticable, the reviews and audits conducted under this

14 subsection shall include on-site visits by the appro15 priate official of the Department of Housing and

16 Urban Development.

17 ‘‘(c) REVIEW OF REPORTS.—

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

19 each recipient that is the subject of a report made

20 by the Secretary under this section notice that the

21 recipient may review and comment on the report

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

23 date on which notice is issued under this paragraph.
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1 ‘‘(2) PUBLIC AVAILABILITY.—After taking into

2 consideration any comments of the recipient under

3 paragraph (1), the Secretary—

4 ‘‘(A) may revise the report; and

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

6 on which those comments are received, shall

7 make the comments and the report (with any

8 revisions made under subparagraph (A)) readily

9 available to the public.

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

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

12 a recipient that are submitted to the Secretary under this

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

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

15 findings of the Secretary with respect to those reports and

16 audits.’’.

17 (g) ALLOCATION FORMULA.—Section 302(d)(1) of

18 the Native American Housing Assistance and Self-Deter19 mination Act of 1996 (25 U.S.C. 4152(d)(1)) is

20 amended—

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

22 the following:

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

24 an Indian tribe described in subparagraph (B),

25 the formula’’; and
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1 (2) by adding at the end the following:

2 ‘‘(B) CERTAIN INDIAN TRIBES.—With re3 spect to fiscal year 2001 and each fiscal year

4 thereafter, for any Indian tribe with an Indian

5 housing authority that owns or operates fewer

6 than 250 public housing units, the formula

7 shall provide that if the amount provided for a

8 fiscal year in which the total amount made

9 available for assistance under this Act is equal

10 to or greater than the amount made available

11 for fiscal year 1996 for assistance for the oper12 ation and modernization of the public housing

13 referred to in subparagraph (A), then the

14 amount provided to that Indian tribe as mod15 ernization assistance shall be equal to the aver16 age annual amount of funds provided to the In17 dian tribe (other than funds provided as emer18 gency assistance) under the assistance program

19 under section 14 of the United States Housing

20 Act of 1937 (42 U.S.C. 1437l) for the period

21 beginning with fiscal year 1992 and ending

22 with fiscal year 1997.’’.

23 (h) HEARING REQUIREMENT.—Section 401(a) of the

24 Native American Housing Assistance and Self-Determina25 tion Act of 1996 (25 U.S.C. 4161(a)) is amended—
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1 (1) by redesignating paragraphs (1) through

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

3 and realigning such subparagraphs (as so redesig4 nated) so as to be indented 4 ems from the left mar5 gin;

6 (2) by striking ‘‘Except as provided’’ and in7 serting the following:

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

9 (3) by striking ‘‘If the Secretary takes an ac10 tion under paragraph (1), (2), or (3)’’ and inserting

11 the following:

12 ‘‘(2) CONTINUANCE OF ACTIONS.—If the Sec13 retary takes an action under subparagraph (A), (B),

14 or (C) of paragraph (1)’’; and

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

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

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

18 other provision of this subsection, if the Sec19 retary makes a determination that the failure of

20 a recipient of assistance under this Act to com21 ply substantially with any material provision (as

22 that term is defined by the Secretary) of this

23 Act is resulting, and would continue to result,

24 in a continuing expenditure of Federal funds in

25 a manner that is not authorized by law, the
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1 Secretary may take an action described in para2 graph (1)(C) before conducting a hearing.

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

4 Secretary takes an action described in subpara5 graph (A), the Secretary shall—

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

7 the time that the Secretary takes that ac8 tion; and

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

10 60 days after the date on which the Sec11 retary provides notice under clause (i).

12 ‘‘(C) DETERMINATION.—Upon completion

13 of a hearing under this paragraph, the Sec14 retary shall make a determination regarding

15 whether to continue taking the action that is

16 the subject of the hearing, or take another ac17 tion under this subsection.’’.

18 (i) PERFORMANCE AGREEMENT TIME LIMIT.—Sec19 tion 401(b) of the Native American Housing Assistance

20 and Self-Determination Act of 1996 (25 U.S.C. 4161(b))

21 is amended—

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

23 the following:

24 ‘‘(1) IN GENERAL.—If the Secretary’’;
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1 (2) by striking ‘‘(1) is not’’ and inserting the

2 following:

3 ‘‘(A) is not’’;

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

5 the following:

6 ‘‘(B) is a result’’;

7 (4) in the flush material following paragraph

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

9 subsection—

10 (A) by realigning such material so as to be

11 indented 2 ems from the left margin; and

12 (B) by inserting before the period at the

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

14 a performance agreement with the Secretary

15 that specifies the compliance objectives that the

16 recipient will be required to achieve by the ter17 mination date of the performance agreement’’;

18 and

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

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

21 of a performance agreement described in paragraph

22 (1) shall be for 1 year.

23 ‘‘(3) REVIEW.—Upon the termination of a per24 formance agreement entered into under paragraph
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1 (1), the Secretary shall review the performance of

2 the recipient that is a party to the agreement.

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

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

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

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

10 specified in paragraph (2); and

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

12 to meet applicable compliance objectives, the

13 Secretary shall determine the recipient to have

14 failed to comply substantially with this Act, and

15 the recipient shall be subject to an action under

16 subsection (a).’’.

17 (j) LABOR STANDARDS.—Section 104(b) of the Na18 tive American Housing Assistance and Self-Determination

19 Act of 1996 (25 U.S.C. 4114(b) is amended—

20 (1) in paragraph (1), by striking ‘‘Davis-Bacon

21 Act (40 U.S.C. 276a–276a–5)’’ and inserting ‘‘Act

22 of March 3, 1931 (commonly known as the Davis23 Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C

24 276a et seq.)’’; and
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1 (2) by adding at the end the following new

2 paragraph:

3 ‘‘(3) APPLICATION OF TRIBAL LAWS.—Para4 graph (1) shall not apply to any contract or agree5 ment for assistance, sale, or lease pursuant to this

6 Act, if such contract or agreement is otherwise cov7 ered by one or more laws or regulations adopted by

8 an Indian tribe that requires the payment of not less

9 than prevailing wages, as determined by the Indian

10 tribe.’’.

11 (k) TECHNICAL AND CONFORMING AMENDMENTS.—

12 (1) TABLE OF CONTENTS.—Section 1(b) of the

13 Native American Housing Assistance and Self-De14 termination Act of 1996 (25 U.S.C. 4101 note) is

15 amended in the table of contents—

16 (A) by striking the item relating to section

17 206; and

18 (B) by striking the item relating to section

19 209 and inserting the following:

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

20 (2) CERTIFICATION OF COMPLIANCE WITH SUB21 SIDY LAYERING REQUIREMENTS.—Section 206 of

22 the Native American Housing Assistance and Self23 Determination Act of 1996 (25 U.S.C. 4136) is re24 pealed.
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1 (3) TERMINATIONS.—Section 502(a) of the Na2 tive American Housing Assistance and Self-Deter3 mination Act of 1996 (25 U.S.C. 4181(a)) is amend4 ed by adding at the end the following: ‘‘Any housing

5 that is the subject of a contract for tenant-based as6 sistance between the Secretary and an Indian hous7 ing authority that is terminated under this section

8 shall, for the following fiscal year and each fiscal

9 year thereafter, be considered to be a dwelling unit

10 under section 302(b)(1).’’.

11 Subtitle B—Native Hawaiian

12 Housing

13 SEC. 721. SHORT TITLE.

14 This subtitle may be cited as the ‘‘Hawaiian Home15 lands Homeownership Act of 2000’’.

16 SEC. 722. FINDINGS.

17 The Congress finds that—

18 (1) the United States has undertaken a respon19 sibility to promote the general welfare of the United

20 States by—

21 (A) employing its resources to remedy the

22 unsafe and unsanitary housing conditions and

23 the acute shortage of decent, safe, and sanitary

24 dwellings for families of lower income; and
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1 (B) developing effective partnerships with

2 governmental and private entities to accomplish

3 the objectives referred to in subparagraph (A);

4 (2) the United States has a special responsi5 bility for the welfare of the Native peoples of the

6 United States, including Native Hawaiians;

7 (3) pursuant to the provisions of the Hawaiian

8 Homes Commission Act, 1920 (42 Stat. 108 et

9 seq.), the United States set aside 200,000 acres of

10 land in the Federal territory that later became the

11 State of Hawaii in order to establish a homeland for

12 the native people of Hawaii—Native Hawaiians;

13 (4) despite the intent of Congress in 1920 to

14 address the housing needs of Native Hawaiians

15 through the enactment of the Hawaiian Homes

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

17 Hawaiians eligible to reside on the Hawaiian home

18 lands have been foreclosed from participating in

19 Federal housing assistance programs available to all

20 other eligible families in the United States;

21 (5) although Federal housing assistance pro22 grams have been administered on a racially neutral

23 basis in the State of Hawaii, Native Hawaiians con24 tinue to have the greatest unmet need for housing
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1 and the highest rates of overcrowding in the United

2 States;

3 (6) among the Native American population of

4 the United States, Native Hawaiians experience the

5 highest percentage of housing problems in the

6 United States, as the percentage—

7 (A) of housing problems in the Native Ha8 waiian population is 49 percent, as compared

9 to—

10 (i) 44 percent for American Indian

11 and Alaska Native households in Indian

12 country; and

13 (ii) 27 percent for all other house14 holds in the United States; and

15 (B) overcrowding in the Native Hawaiian

16 population is 36 percent as compared to 3 per17 cent for all other households in the United

18 States;

19 (7) among the Native Hawaiian population, the

20 needs of Native Hawaiians, as that term is defined

21 in section 801 of the Native American Housing As22 sistance and Self-Determination Act of 1996, as

23 added by section 723 of this subtitle, eligible to re24 side on the Hawaiian Home Lands are the most se25 vere, as—
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1 (A) the percentage of overcrowding in Na2 tive Hawaiian households on the Hawaiian

3 Home Lands is 36 percent; and

4 (B) approximately 13,000 Native Hawai5 ians, which constitute 95 percent of the Native

6 Hawaiians who are eligible to reside on the Ha7 waiian Home Lands, are in need of housing;

8 (8) applying the Department of Housing and

9 Urban Development guidelines—

10 (A) 70.8 percent of Native Hawaiians who

11 either reside or who are eligible to reside on the

12 Hawaiian Home Lands have incomes that fall

13 below the median family income; and

14 (B) 50 percent of Native Hawaiians who

15 either reside or who are eligible to reside on the

16 Hawaiian Home Lands have incomes below 30

17 percent of the median family income;

(9) 1 18 ⁄3 of those Native Hawaiians who are eligi19 ble to reside on the Hawaiian Home Lands pay

20 more than 30 percent of their income for shelter,

and 1 21 ⁄2 of those Native Hawaiians face overcrowding;

22 (10) the extraordinarily severe housing needs of

23 Native Hawaiians demonstrate that Native Hawai24 ians who either reside on, or are eligible to reside on,

25 Hawaiian Home Lands have been denied equal ac-
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1 cess to Federal low-income housing assistance pro2 grams available to other qualified residents of the

3 United States, and that a more effective means of

4 addressing their housing needs must be authorized;

5 (11) consistent with the recommendations of

6 the National Commission on American Indian, Alas7 ka Native, and Native Hawaiian Housing, and in

8 order to address the continuing prevalence of ex9 traordinarily severe housing needs among Native

10 Hawaiians who either reside or are eligible to reside

11 on the Hawaiian Home Lands, Congress finds it

12 necessary to extend the Federal low-income housing

13 assistance available to American Indians and Alaska

14 Natives under the Native American Housing Assist15 ance and Self-Determination Act of 1996 (25 U.S.C.

16 4101 et seq.) to those Native Hawaiians;

17 (12) under the treatymaking power of the

18 United States, Congress had the constitutional au19 thority to confirm a treaty between the United

20 States and the government that represented the Ha21 waiian people, and from 1826 until 1893, the United

22 States recognized the independence of the Kingdom

23 of Hawaii, extended full diplomatic recognition to

24 the Hawaiian Government, and entered into treaties

25 and conventions with the Hawaiian monarchs to gov-
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1 ern commerce and navigation in 1826, 1842, 1849,

2 1875, and 1887;

3 (13) the United States has recognized and re4 affirmed that—

5 (A) Native Hawaiians have a cultural, his6 toric, and land-based link to the indigenous peo7 ple who exercised sovereignty over the Hawaiian

8 Islands, and that group has never relinquished

9 its claims to sovereignty or its sovereign lands;

10 (B) Congress does not extend services to

11 Native Hawaiians because of their race, but be12 cause of their unique status as the indigenous

13 people of a once sovereign nation as to whom

14 the United States has established a trust rela15 tionship;

16 (C) Congress has also delegated broad au17 thority to administer a portion of the Federal

18 trust responsibility to the State of Hawaii;

19 (D) the political status of Native Hawai20 ians is comparable to that of American Indians

21 and Alaska Natives; and

22 (E) the aboriginal, indigenous people of

23 the United States have—

24 (i) a continuing right to autonomy in

25 their internal affairs; and
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1 (ii) an ongoing right of self-deter2 mination and self-governance that has

3 never been extinguished;

4 (14) the political relationship between the

5 United States and the Native Hawaiian people has

6 been recognized and reaffirmed by the United States

7 as evidenced by the inclusion of Native Hawaiians

8 in—

9 (A) the Native American Programs Act of

10 1974 (42 U.S.C. 2291 et seq.);

11 (B) the American Indian Religious Free12 dom Act (42 U.S.C. 1996 et seq.);

13 (C) the National Museum of the American

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

15 (D) the Native American Graves Protec16 tion and Repatriation Act (25 U.S.C. 3001 et

17 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 Devel24 opment 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 (15) 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

22 the United States, and mandating that

23 those lands be held in public trust, for the

24 betterment of the conditions of Native Ha25 waiians, as that term is defined in section
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1 201 of the Hawaiian Homes Commission

2 Act, 1920 (42 Stat. 108 et seq.); and

3 (ii) by transferring the United States

4 responsibility for the administration of Ha5 waiian Home Lands to the State of Ha6 waii, but retaining the authority to enforce

7 the trust, including the exclusive right of

8 the United States to consent to any actions

9 affecting the lands which comprise the cor10 pus of the trust and any amendments to

11 the Hawaiian Homes Commission Act,

12 1920 (42 Stat. 108 et seq.), enacted by the

13 legislature of the State of Hawaii affecting

14 the rights of beneficiaries under the Act;

15 (C) the authorization of mortgage loans in16 sured by the Federal Housing Administration

17 for the purchase, construction, or refinancing of

18 homes on Hawaiian Home Lands under the Na19 tional Housing Act (Public Law 479; 73d Con20 gress; 12 U.S.C. 1701 et seq.);

21 (D) authorizing Native Hawaiian represen22 tation on the National Commission on Amer23 ican Indian, Alaska Native, and Native Hawai24 ian Housing under Public Law 101–235;
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1 (E) the inclusion of Native Hawaiians in

2 the definition under section 3764 of title 38,

3 United States Code, applicable to subchapter V

4 of chapter 37 of title 38, United States Code

5 (relating to a housing loan program for Native

6 American veterans); and

7 (F) the enactment of the Hawaiian Home

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

9 491, note prec.) which establishes a process for

10 the conveyance of Federal lands to the Depart11 ment of Hawaiian Homes Lands that are equiv12 alent in value to lands acquired by the United

13 States from the Hawaiian Home Lands inven14 tory.

15 SEC. 723. HOUSING ASSISTANCE.

16 The Native American Housing Assistance and Self17 Determination Act of 1996 (25 U.S.C. 4101 et seq.) is

18 amended by adding at the end the following:

19 ‘‘TITLE VIII—HOUSING ASSIST20 ANCE FOR NATIVE HAWAI21 IANS

22 ‘‘SEC. 801. DEFINITIONS.

23 ‘‘In this title:

24 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS;

25 DEPARTMENT.—The term ‘Department of Hawaiian
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1 Home Lands’ or ‘Department’ means the agency or

2 department of the government of the State of Ha3 waii that is responsible for the administration of the

4 Hawaiian Homes Commission Act, 1920 (42 Stat.

5 108 et seq.).

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

7 the Director of the Department of Hawaiian Home

8 Lands.

9 ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMI10 LIES.—

11 ‘‘(A) IN GENERAL.—The term ‘elderly

12 family’ or ‘near-elderly family’ means a family

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

14 member, is—

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

16 person; or

17 ‘‘(ii) for a near-elderly family, a near18 elderly person.

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

20 term ‘elderly family’ or ‘near-elderly family’

21 includes—

22 ‘‘(i) two or more elderly persons or

23 near-elderly persons, as the case may be,

24 living together; and
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1 ‘‘(ii) one or more persons described in

2 clause (i) living with one or more persons

3 determined under the housing plan to be

4 essential to their care or well-being.

5 ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha6 waiian Home Lands’ means lands that—

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

8 lands under section 204 of the Hawaiian

9 Homes Commission Act, 1920(42 Stat. 110); or

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

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

12 means an area of Hawaiian Home Lands with re13 spect to which the Department of Hawaiian Home

14 Lands is authorized to provide assistance for afford15 able housing under this Act.

16 ‘‘(6) HOUSING ENTITY.—The term ‘housing en17 tity’ means the Department of Hawaiian Home

18 Lands.

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

20 means a plan developed by the Department of Ha21 waiian Home Lands.

22 ‘‘(8) MEDIAN INCOME.—The term ‘median in23 come’ means, with respect to an area that is a Ha24 waiian housing area, the greater of—
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1 ‘‘(A) the median income for the Hawaiian

2 housing area, which shall be determined by the

3 Secretary; or

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

5 Hawaii.

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

7 Hawaiian’ means any individual who is—

8 ‘‘(A) a citizen of the United States; and

9 ‘‘(B) a descendant of the aboriginal people,

10 who, prior to 1778, occupied and exercised sov11 ereignty in the area that currently constitutes

12 the State of Hawaii, as evidenced by—

13 ‘‘(i) genealogical records;

14 ‘‘(ii) verification by kupuna (elders) or

15 kama’aina (long-term community resi16 dents); or

17 ‘‘(iii) birth records of the State of Ha18 waii.

19 ‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE HOUSING

20 ACTIVITIES.

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

22 Secretary shall (to the extent amounts are made available

23 to carry out this title) make a grant under this title to

24 the Department of Hawaiian Home Lands to carry out
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1 affordable housing activities for Native Hawaiian families

2 who are eligible to reside on the Hawaiian Home Lands.

3 ‘‘(b) PLAN REQUIREMENT.—

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

5 grant under this title to the Department of Hawai6 ian Home Lands for a fiscal year only if—

7 ‘‘(A) the Director has submitted to the

8 Secretary a housing plan for that fiscal year;

9 and

10 ‘‘(B) the Secretary has determined under

11 section 804 that the housing plan complies with

12 the requirements of section 803.

13 ‘‘(2) WAIVER.—The Secretary may waive the

14 applicability of the requirements under paragraph

15 (1), in part, if the Secretary finds that the Depart16 ment of Hawaiian Home Lands has not complied or

17 cannot comply with those requirements due to cir18 cumstances beyond the control of the Department of

19 Hawaiian Home Lands.

20 ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES

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

22 amounts provided under a grant under this section may

23 be used only for affordable housing activities under this

24 title that are consistent with a housing plan approved

25 under section 804.
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1 ‘‘(d) ADMINISTRATIVE EXPENSES.—

2 ‘‘(1) IN GENERAL.—The Secretary shall, by

3 regulation, authorize the Department of Hawaiian

4 Home Lands to use a percentage of any grant

5 amounts received under this title for any reasonable

6 administrative and planning expenses of the Depart7 ment relating to carrying out this title and activities

8 assisted with those amounts.

9 ‘‘(2) ADMINISTRATIVE AND PLANNING EX10 PENSES.—The administrative and planning expenses

11 referred to in paragraph (1) include—

12 ‘‘(A) costs for salaries of individuals en13 gaged in administering and managing afford14 able housing activities assisted with grant

15 amounts provided under this title; and

16 ‘‘(B) expenses incurred in preparing a

17 housing plan under section 803.

18 ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Direc19 tor shall make all reasonable efforts, consistent with the

20 purposes of this title, to maximize participation by the pri21 vate sector, including nonprofit organizations and for22 profit entities, in implementing a housing plan that has

23 been approved by the Secretary under section 803.

24 ‘‘SEC. 803. HOUSING PLAN.

25 ‘‘(a) PLAN SUBMISSION.—The Secretary shall—
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1 ‘‘(1) require the Director to submit a housing

2 plan under this section for each fiscal year; and

3 ‘‘(2) provide for the review of each plan sub4 mitted under paragraph (1).

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

6 this section shall—

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

8 and

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

10 beginning with the fiscal year for which the plan is

11 submitted, the following information:

12 ‘‘(A) MISSION STATEMENT.—A general

13 statement of the mission of the Department of

14 Hawaiian Home Lands to serve the needs of

15 the low-income families to be served by the De16 partment.

17 ‘‘(B) GOAL AND OBJECTIVES.—A state18 ment of the goals and objectives of the Depart19 ment of Hawaiian Home Lands to enable the

20 Department to serve the needs identified in

21 subparagraph (A) during the period.

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

23 the activities planned during the period includ24 ing an analysis of the manner in which the ac-
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1 tivities will enable the Department to meet its

2 mission, goals, and objectives.

3 ‘‘(c) ONE-YEAR PLAN.—A housing plan under this

4 section shall—

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

6 and

7 ‘‘(2) contain the following information relating

8 to the fiscal year for which the assistance under this

9 title is to be made available:

10 ‘‘(A) GOALS AND OBJECTIVES.—A state11 ment of the goals and objectives to be accom12 plished during the period covered by the plan.

13 ‘‘(B) STATEMENT OF NEEDS.—A state14 ment of the housing needs of the low-income

15 families served by the Department and the

16 means by which those needs will be addressed

17 during the period covered by the plan,

18 including—

19 ‘‘(i) a description of the estimated

20 housing needs and the need for assistance

21 for the low-income families to be served by

22 the Department, including a description of

23 the manner in which the geographical dis24 tribution of assistance is consistent with—
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1 ‘‘(I) the geographical needs of

2 those families; and

3 ‘‘(II) needs for various categories

4 of housing assistance; and

5 ‘‘(ii) a description of the estimated

6 housing needs for all families to be served

7 by the Department.

8 ‘‘(C) FINANCIAL RESOURCES.—An oper9 ating budget for the Department of Hawaiian

10 Home Lands, in a form prescribed by the Sec11 retary, that includes—

12 ‘‘(i) an identification and a descrip13 tion of the financial resources reasonably

14 available to the Department to carry out

15 the purposes of this title, including an ex16 planation of the manner in which amounts

17 made available will be used to leverage ad18 ditional resources; and

19 ‘‘(ii) the uses to which the resources

20 described in clause (i) will be committed,

21 including—

22 ‘‘(I) eligible and required afford23 able housing activities; and

24 ‘‘(II) administrative expenses.
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1 ‘‘(D) AFFORDABLE HOUSING RE2 SOURCES.—A statement of the affordable hous3 ing resources currently available at the time of

4 the submittal of the plan and to be made avail5 able during the period covered by the plan,

6 including—

7 ‘‘(i) a description of the significant

8 characteristics of the housing market in

9 the State of Hawaii, including the avail10 ability of housing from other public

11 sources, private market housing;

12 ‘‘(ii) the manner in which the charac13 teristics referred to in clause (i) influence

14 the decision of the Department of Hawai15 ian Home Lands to use grant amounts to

16 be provided under this title for—

17 ‘‘(I) rental assistance;

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

19 ‘‘(III) the acquisition of existing

20 units; or

21 ‘‘(IV) the rehabilitation of units;

22 ‘‘(iii) a description of the structure,

23 coordination, and means of cooperation be24 tween the Department of Hawaiian Home

25 Lands and any other governmental entities
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1 in the development, submission, or imple2 mentation of housing plans, including a de3 scription of—

4 ‘‘(I) the involvement of private,

5 public, and nonprofit organizations

6 and institutions;

7 ‘‘(II) the use of loan guarantees

8 under section 184A of the Housing

9 and Community Development Act of

10 1992; and

11 ‘‘(III) other housing assistance

12 provided by the United States, includ13 ing loans, grants, and mortgage insur14 ance;

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

16 which the plan will address the needs iden17 tified pursuant to subparagraph (C);

18 ‘‘(v) a description of—

19 ‘‘(I) any existing or anticipated

20 homeownership programs and rental

21 programs to be carried out during the

22 period covered by the plan; and

23 ‘‘(II) the requirements and as24 sistance available under the programs

25 referred to in subclause (I);
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1 ‘‘(vi) a description of—

2 ‘‘(I) any existing or anticipated

3 housing rehabilitation programs nec4 essary to ensure the long-term viabil5 ity of the housing to be carried out

6 during the period covered by the plan;

7 and

8 ‘‘(II) the requirements and as9 sistance available under the programs

10 referred to in subclause (I);

11 ‘‘(vii) a description of—

12 ‘‘(I) all other existing or antici13 pated housing assistance provided by

14 the Department of Hawaiian Home

15 Lands during the period covered by

16 the plan, including—

17 ‘‘(aa) transitional housing;

18 ‘‘(bb) homeless housing;

19 ‘‘(cc) college housing; and

20 ‘‘(dd) supportive services

21 housing; and

22 ‘‘(II) the requirements and as23 sistance available under such pro24 grams;
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1 ‘‘(viii)(I) a description of any housing

2 to be demolished or disposed of;

3 ‘‘(II) a timetable for that demolition

4 or disposition; and

5 ‘‘(III) any other information required

6 by the Secretary with respect to that dem7 olition 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 Hawai18 ian 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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1 ‘‘(IV) allow for the coordination

2 of crime prevention activities between

3 the Department and local law enforce4 ment 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

11 appropriate—

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 the Fair Housing Act (42

18 U.S.C. 3601 et seq.) in carrying out

19 this title, to the extent that such title

20 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
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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

10 amounts provided under this title;

11 ‘‘(iv) a certification that policies are

12 in 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

23 under 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

3 1964 (42 U.S.C. 2000d et seq.) or of the Fair Hous4 ing Act (42 U.S.C. 3601 et seq.) apply to assistance

5 provided under this title, nothing in the require6 ments concerning discrimination on the basis of race

7 shall be construed to prevent the provision of assist8 ance under this title—

9 ‘‘(A) to the Department of Hawaiian

10 Home Lands on the basis that the Department

11 served 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.

16 Subject to the preceding sentence, no person may be

17 discriminated against on the basis of race, color, na18 tional origin, religion, sex, familial status, or dis19 ability.

20 ‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As a

21 condition of receiving grant amounts under this title, the

22 Department of Hawaiian Home Lands shall, to the extent

23 practicable, provide for private nonprofit organizations ex24 perienced in the planning and development of affordable
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1 housing for Native Hawaiians to carry out affordable

2 housing 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

17 days after receiving a plan under section 803,

18 the Secretary shall notify the Director of the

19 Department of Hawaiian Home Lands whether

20 the plan complies with the requirements under

21 that 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

25 required under this subsection and subsection
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1 (b), upon the expiration of the 60-day period

2 described in subparagraph (A)—

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

4 have been determined to comply with the

5 requirements under section 803; and

6 ‘‘(ii) the Director shall be considered

7 to have been notified of compliance.

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

9 NONCOMPLIANCE.—If the Secretary determines that a

10 plan submitted under section 803 does not comply with

11 the requirements of that section, the Secretary shall speci12 fy in 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

18 Department of Hawaiian Home Lands submits a

19 housing plan under section 803, or any amendment

20 or modification to the plan to the Secretary, to the

21 extent that the Secretary considers such action to be

22 necessary to make a determination under this sub23 section, the Secretary shall review the plan (includ24 ing any amendments or modifications thereto) to de25 termine 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 ap10 propriate 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

16 for a fiscal year, the Director of the Department of

17 Hawaiian Home Lands may comply with the provi18 sions of that section for any succeeding fiscal year

19 (with respect to information included for the 5-year

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

21 under section 803(c)) by submitting only such infor22 mation regarding such changes as may be necessary

23 to update the plan previously submitted.

24 ‘‘(2) COMPLETE PLANS.—The Director shall

25 submit a complete plan under section 803 not later
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1 than 4 years after submitting an initial plan under

2 that section, and not less frequently than every 4

3 years thereafter.

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

5 803 shall take effect on the date provided by the Secretary

6 pursuant to section 807(a) to provide for timely submis7 sion and review of the housing plan as necessary for the

8 provision of assistance under this title for fiscal year 2001.

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 pro20 gram income for affordable housing activities in

21 accordance 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

25 solely on—
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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 local17 ity, as determined or adopted (subsequent to a

18 determination under applicable State or local

19 law) by the Secretary, shall be paid to all archi20 tects, technical engineers, draftsmen, techni21 cians employed in the development and all

22 maintenance, and laborers and mechanics em23 ployed in the operation, of the affordable hous24 ing project involved; and
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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 ‘Davis5 Bacon Act’ (46 Stat. 1494; chapter 411; 40

6 U.S.C. 276a et seq.) shall be paid to all labor7 ers and mechanics employed in the development

8 of the affordable 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 indi13 vidual who performs the services for which the indi14 vidual volunteered and who is not otherwise em15 ployed at any time in the construction work and re16 ceived no compensation or is paid expenses, reason17 able benefits, or 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—
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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

4 of law that further the purposes of such

5 Act (as specified in regulations issued by

6 the Secretary) are most effectively imple7 mented in connection with the expenditure

8 of grant amounts provided under this title;

9 and

10 ‘‘(ii) to the public undiminished pro11 tection of the environment.

12 ‘‘(B) ALTERNATIVE ENVIRONMENTAL PRO13 TECTION PROCEDURE.—In lieu of applying en14 vironmental protection procedures otherwise ap15 plicable, the Secretary may by regulation pro16 vide for the release of funds for specific projects

17 to the Department of Hawaiian Home Lands if

18 the Director of the Department assumes all of

19 the responsibilities for environmental review,

20 decisionmaking, and action under the National

21 Environmental Policy Act of 1969 (42 U.S.C.

22 4321 et seq.), and such other provisions of law

23 as the regulations of the Secretary specify, that

24 would apply to the Secretary were the Secretary

25 to undertake those projects as Federal projects.
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1 ‘‘(2) REGULATIONS.—

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

3 issue regulations to carry out this section only

4 after consultation with the Council on Environ5 mental Quality.

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

7 under this paragraph shall—

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

9 environmental reviews performed under

10 this section;

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

12 facilitate training for the performance of

13 such reviews; and

14 ‘‘(iii) provide for the suspension or

15 termination of the assumption of respon16 sibilities under this section.

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

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

19 shall not be construed to limit or reduce any respon20 sibility assumed by the Department of Hawaiian

21 Home Lands for grant amounts with respect to any

22 specific release of funds.

23 ‘‘(b) PROCEDURE.—

24 ‘‘(1) IN GENERAL.—The Secretary shall author25 ize the release of funds subject to the procedures
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1 under this section only if, not less than 15 days be2 fore that approval and before any commitment of

3 funds to such projects, the Director of the Depart4 ment of Hawaiian Home Lands submits to the Sec5 retary a request for such release accompanied by a

6 certification that meets the requirements of sub7 section (c).

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

9 the Secretary of a certification described in para10 graph (1) shall be deemed to satisfy the responsibil11 ities of the Secretary under the National Environ12 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

13 and such other provisions of law as the regulations

14 of the Secretary specify to the extent that those re15 sponsibilities relate to the releases of funds for

16 projects that are covered by that certification.

17 ‘‘(c) CERTIFICATION.—A certification under the pro18 cedures under this section shall—

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

20 ‘‘(2) be executed by the Director of the Depart21 ment of Hawaiian Home Lands;

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

23 Home Lands has fully carried out its responsibilities

24 as described under subsection (a); and

25 ‘‘(4) specify that the Director—
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1 ‘‘(A) consents to assume the status of a re2 sponsible Federal official under the National

3 Environmental Policy Act of 1969 (42 U.S.C.

4 4321 et seq.) and each provision of law speci5 fied in regulations issued by the Secretary to

6 the extent that those laws apply by reason of

7 subsection (a); and

8 ‘‘(B) is authorized and consents on behalf

9 of the Department of Hawaiian Home Lands

10 and the Director to accept the jurisdiction of

11 the Federal courts for the purpose of enforce12 ment of the responsibilities of the Director of

13 the Department of Hawaiian Home Lands as

14 such an official.

15 ‘‘SEC. 807. REGULATIONS.

16 ‘‘The Secretary shall issue final regulations necessary

17 to carry out this title not later than October 1, 2001.

18 ‘‘SEC. 808. EFFECTIVE DATE.

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

20 this title shall take effect on the date of the enactment

21 of the American Homeownership and Economic Oppor22 tunity Act of 2000.

23 ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES.

24 ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE FAMI25 LIES.—
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1 ‘‘(1) PRIMARY OBJECTIVE.—The national objec2 tives of this title are—

3 ‘‘(A) to assist and promote affordable

4 housing activities to develop, maintain, and op5 erate affordable housing in safe and healthy en6 vironments for occupancy by low-income Native

7 Hawaiian families;

8 ‘‘(B) to ensure better access to private

9 mortgage markets and to promote self-suffi10 ciency of low-income Native Hawaiian families;

11 ‘‘(C) to coordinate activities to provide

12 housing for low-income Native Hawaiian fami13 lies with Federal, State and local activities to

14 further economic and community development;

15 ‘‘(D) to plan for and integrate infrastruc16 ture resources on the Hawaiian Home Lands

17 with housing development; and

18 ‘‘(E) to—

19 ‘‘(i) promote the development of pri20 vate capital markets; and

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

22 clause (i) to operate and grow, thereby

23 benefiting Native Hawaiian communities.

24 ‘‘(2) ELIGIBLE FAMILIES.—
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1 ‘‘(A) IN GENERAL.—Except as provided

2 under subparagraph (B), assistance for eligible

3 housing activities under this title shall be lim4 ited to low-income Native Hawaiian families.

5 ‘‘(B) EXCEPTION TO LOW-INCOME RE6 QUIREMENT.—

7 ‘‘(i) IN GENERAL.—The Director may

8 provide assistance for homeownership ac9 tivities under—

10 ‘‘(I) section 810(b);

11 ‘‘(II) model activities under sec12 tion 810(f); or

13 ‘‘(III) loan guarantee activities

14 under section 184A of the Housing

15 and Community Development Act of

16 1992 to Native Hawaiian families who

17 are not low-income families, to the ex18 tent that the Secretary approves the

19 activities under that section to ad20 dress a need for housing for those

21 families that cannot be reasonably

22 met without that assistance.

23 ‘‘(ii) LIMITATIONS.—The Secretary

24 shall establish limitations on the amount of

25 assistance that may be provided under this
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1 title for activities for families that are not

2 low-income families.

3 ‘‘(C) OTHER FAMILIES.—Notwithstanding

4 paragraph (1), the Director may provide hous5 ing or housing assistance provided through af6 fordable housing activities assisted with grant

7 amounts under this title to a family that is not

8 composed of Native Hawaiians if—

9 ‘‘(i) the Department determines that

10 the presence of the family in the housing

11 involved is essential to the well-being of

12 Native Hawaiian families; and

13 ‘‘(ii) the need for housing for the fam14 ily cannot be reasonably met without the

15 assistance.

16 ‘‘(D) PREFERENCE.—

17 ‘‘(i) IN GENERAL.—A housing plan

18 submitted under section 803 may authorize

19 a preference, for housing or housing assist20 ance provided through affordable housing

21 activities assisted with grant amounts pro22 vided under this title to be provided, to the

23 extent practicable, to families that are eli24 gible to reside on the Hawaiian Home

25 Lands.
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1 ‘‘(ii) APPLICATION.—In any case in

2 which a housing plan provides for pref3 erence described in clause (i), the Director

4 shall ensure that housing activities that are

5 assisted with grant amounts under this

6 title are subject to that preference.

7 ‘‘(E) USE OF NONPROFIT ORGANIZA8 TIONS.—As a condition of receiving grant

9 amounts under this title, the Department of

10 Hawaiian Home Lands, shall to the extent

11 practicable, provide for private nonprofit orga12 nizations experienced in the planning and devel13 opment of affordable housing for Native Hawai14 ians to carry out affordable housing activities

15 with those grant amounts.

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

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

18 under this section are activities conducted in accordance

19 with the requirements of section 811 to—

20 ‘‘(1) develop or to support affordable housing

21 for rental or homeownership; or

22 ‘‘(2) provide housing services with respect to af23 fordable housing, through the activities described in

24 subsection (b).
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1 ‘‘(b) ACTIVITIES.—The activities described in this

2 subsection are the following:

3 ‘‘(1) DEVELOPMENT.—The acquisition, new

4 construction, reconstruction, or moderate or sub5 stantial rehabilitation of affordable housing, which

6 may include—

7 ‘‘(A) real property acquisition;

8 ‘‘(B) site improvement;

9 ‘‘(C) the development of utilities and util10 ity services;

11 ‘‘(D) conversion;

12 ‘‘(E) demolition;

13 ‘‘(F) financing;

14 ‘‘(G) administration and planning; and

15 ‘‘(H) other related activities.

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

17 housing-related services for affordable housing,

18 including—

19 ‘‘(A) housing counseling in connection with

20 rental or homeownership assistance;

21 ‘‘(B) the establishment and support of

22 resident organizations and resident manage23 ment corporations;

24 ‘‘(C) energy auditing;
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1 ‘‘(D) activities related to the provisions of

2 self-sufficiency and other services; and

3 ‘‘(E) other services related to assisting

4 owners, tenants, contractors, and other entities

5 participating or seeking to participate in other

6 housing activities assisted pursuant to this sec7 tion.

8 ‘‘(3) HOUSING MANAGEMENT SERVICES.—The

9 provision of management services for affordable

10 housing, including—

11 ‘‘(A) the preparation of work specifica12 tions;

13 ‘‘(B) loan processing;

14 ‘‘(C) inspections;

15 ‘‘(D) tenant selection;

16 ‘‘(E) management of tenant-based rental

17 assistance; and

18 ‘‘(F) management of affordable housing

19 projects.

20 ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI21 TIES.—The provision of safety, security, and law en22 forcement measures and activities appropriate to

23 protect residents of affordable housing from crime.

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

25 under model programs that are—
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1 ‘‘(A) designed to carry out the purposes of

2 this title; and

3 ‘‘(B) specifically approved by the Secretary

4 as appropriate for the purpose referred to in

5 subparagraph (A).

6 ‘‘SEC. 811. PROGRAM REQUIREMENTS.

7 ‘‘(a) RENTS.—

8 ‘‘(1) ESTABLISHMENT.—Subject to paragraph

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

10 this title, the Director shall develop written policies

11 governing rents and homebuyer payments charged

12 for dwelling units assisted under this title, including

13 methods by which such rents and homebuyer pay14 ments are determined.

15 ‘‘(2) MAXIMUM RENT.—In the case of any low16 income family residing in a dwelling unit assisted

17 with grant amounts under this title, the monthly

18 rent or homebuyer payment (as applicable) for that

19 dwelling unit may not exceed 30 percent of the

20 monthly adjusted income of that family.

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

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

23 amounts of any grants received under this title, re24 serve and use for operating under section 810 such

25 amounts as may be necessary to provide for the con-
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1 tinued maintenance and efficient operation of such

2 housing.

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

4 subsection may not be construed to prevent the Di5 rector, or any entity funded by the Department,

6 from demolishing or disposing of housing, pursuant

7 to regulations established by the Secretary.

8 ‘‘(c) INSURANCE COVERAGE.—As a condition to re9 ceiving grant amounts under this title, the Director shall

10 require adequate insurance coverage for housing units that

11 are owned or operated or assisted with grant amounts pro12 vided under this title.

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

14 to receiving grant amounts under this title, the Director

15 shall develop written policies governing the eligibility, ad16 mission, and occupancy of families for housing assisted

17 with grant amounts provided under this title.

18 ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a con19 dition to receiving grant amounts under this title, the Di20 rector shall develop policies governing the management

21 and maintenance of housing assisted with grant amounts

22 under this title.
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1 ‘‘SEC. 812. TYPES OF INVESTMENTS.

2 ‘‘(a) IN GENERAL.—Subject to section 811 and an

3 applicable housing plan approved under section 803, the

4 Director shall have—

5 ‘‘(1) the discretion to use grant amounts for af6 fordable housing activities through the use of—

7 ‘‘(A) equity investments;

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

9 ‘‘(C) noninterest-bearing loans or ad10 vances;

11 ‘‘(D) interest subsidies;

12 ‘‘(E) the leveraging of private investments;

13 or

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

15 Secretary determines to be consistent with the

16 purposes of this title; and

17 ‘‘(2) the right to establish the terms of assist18 ance provided with funds referred to in paragraph

19 (1).

20 ‘‘(b) INVESTMENTS.—The Director may invest grant

21 amounts for the purposes of carrying out affordable hous22 ing activities in investment securities and other obliga23 tions, as approved by the Secretary.
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1 ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND INCOME TAR2 GETING.

3 ‘‘(a) IN GENERAL.—Housing shall qualify for afford4 able housing for purposes of this title only if—

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

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

7 available for occupancy only by a family that is

8 a low-income family at the time of the initial

9 occupancy of that family of that unit; and

10 ‘‘(B) in the case of housing for home11 ownership, is made available for purchase only

12 by a family that is a low-income family at the

13 time of purchase; and

14 ‘‘(2) each dwelling unit in the housing will re15 main affordable, according to binding commitments

16 satisfactory to the Secretary, for—

17 ‘‘(A) the remaining useful life of the prop18 erty (as determined by the Secretary) without

19 regard to the term of the mortgage or to trans20 fer of ownership; or

21 ‘‘(B) such other period as the Secretary

22 determines is the longest feasible period of time

23 consistent with sound economics and the pur24 poses of this title, except upon a foreclosure by

25 a lender (or upon other transfer in lieu of fore26 closure) if that action—
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1 ‘‘(i) recognizes any contractual or

2 legal rights of any public agency, nonprofit

3 sponsor, or other person or entity to take

4 an action that would—

5 ‘‘(I) avoid termination of low-in6 come affordability, in the case of fore7 closure; or

8 ‘‘(II) transfer ownership in lieu

9 of foreclosure; and

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

11 low-income affordability restrictions, as de12 termined by the Secretary.

13 ‘‘(b) EXCEPTION.—Notwithstanding subsection (a),

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

15 considered affordable housing for purposes of this title.

16 ‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT SELEC17 TION.

18 ‘‘(a) LEASES.—Except to the extent otherwise pro19 vided by or inconsistent with the laws of the State of Ha20 waii, in renting dwelling units in affordable housing as21 sisted with grant amounts provided under this title, the

22 Director, owner, or manager shall use leases that—

23 ‘‘(1) do not contain unreasonable terms and

24 conditions;
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1 ‘‘(2) require the Director, owner, or manager to

2 maintain the housing in compliance with applicable

3 housing codes and quality standards;

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

5 give adequate written notice of termination of the

6 lease, which shall be the period of time required

7 under applicable State or local law;

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

9 eviction or termination, notwithstanding any State

10 or local law, a resident shall be informed of the op11 portunity, before any hearing or trial, to examine

12 any relevant documents, record, or regulations di13 rectly related to the eviction or termination;

14 ‘‘(5) require that the Director, owner, or man15 ager may not terminate the tenancy, during the

16 term of the lease, except for serious or repeated vio17 lation of the terms and conditions of the lease, viola18 tion of applicable Federal, State, or local law, or for

19 other good cause; and

20 ‘‘(6) provide that the Director, owner, or man21 ager may terminate the tenancy of a resident for

22 any activity, engaged in by the resident, any member

23 of the household of the resident, or any guest or

24 other person under the control of the resident,

25 that—
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1 ‘‘(A) threatens the health or safety of, or

2 right to peaceful enjoyment of the premises by,

3 other residents or employees of the Department,

4 owner, or manager;

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

6 right to peaceful enjoyment of their premises

7 by, persons residing in the immediate vicinity of

8 the premises; or

9 ‘‘(C) is criminal activity (including drug-re10 lated criminal activity) on or off the premises.

11 ‘‘(b) TENANT OR HOMEBUYER SELECTION.—As a

12 condition to receiving grant amounts under this title, the

13 Director shall adopt and use written tenant and home14 buyer selection policies and criteria that—

15 ‘‘(1) are consistent with the purpose of pro16 viding housing for low-income families;

17 ‘‘(2) are reasonably related to program eligi18 bility and the ability of the applicant to perform the

19 obligations of the lease; and

20 ‘‘(3) provide for—

21 ‘‘(A) the selection of tenants and home22 buyers from a written waiting list in accordance

23 with the policies and goals set forth in an appli24 cable housing plan approved under section 803;

25 and
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1 ‘‘(B) the prompt notification in writing of

2 any rejected applicant of the grounds for that

3 rejection.

4 ‘‘SEC. 815. REPAYMENT.

5 ‘‘If the Department of Hawaiian Home Lands uses

6 grant amounts to provide affordable housing under activi7 ties under this title and, at any time during the useful

8 life of the housing, the housing does not comply with the

9 requirement under section 813(a)(2), the Secretary

10 shall—

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

12 the Department by an amount equal to the grant

13 amounts used for that housing (under the authority

14 of section 819(a)(2)); or

15 ‘‘(2) require repayment to the Secretary of any

16 amount equal to those grant amounts.

17 ‘‘SEC. 816. ANNUAL ALLOCATION.

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

19 amounts made available for assistance under this title for

20 the fiscal year, in accordance with the formula established

21 pursuant to section 817 to the Department of Hawaiian

22 Home Lands if the Department complies with the require23 ments under this title for a grant under this title.
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1 ‘‘SEC. 817. ALLOCATION FORMULA.

2 ‘‘(a) ESTABLISHMENT.—The Secretary shall, by reg3 ulation issued not later than the expiration of the 6-month

4 period beginning on the date of the enactment of the

5 American Homeownership and Economic Opportunity Act

6 of 2000, in the manner provided under section 807, estab7 lish a formula to provide for the allocation of amounts

8 available for a fiscal year for block grants under this title

9 in accordance with the requirements of this section.

10 ‘‘(b) FACTORS FOR DETERMINATION OF NEED.—

11 The formula under subsection (a) shall be based on factors

12 that reflect the needs for assistance for affordable housing

13 activities, including—

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

15 owned or operated at the time pursuant to a con16 tract between the Director and the Secretary;

17 ‘‘(2) the extent of poverty and economic distress

18 and the number of Native Hawaiian families eligible

19 to reside on the Hawaiian Home Lands; and

20 ‘‘(3) any other objectively measurable condi21 tions that the Secretary and the Director may speci22 fy.

23 ‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In es24 tablishing the formula under subsection (a), the Secretary

25 shall consider the relative administrative capacities of the
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1 Department of Hawaiian Home Lands and other chal2 lenges faced by the Department, including—

3 ‘‘(1) geographic distribution within Hawaiian

4 Home Lands; and

5 ‘‘(2) technical capacity.

6 ‘‘(d) EFFECTIVE DATE.—This section shall take ef7 fect on the date of the enactment of the American Home8 ownership and Economic Opportunity Act of 2000.

9 ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE.

10 ‘‘(a) ACTIONS BY SECRETARY AFFECTING GRANT

11 AMOUNTS.—

12 ‘‘(1) IN GENERAL.—Except as provided in sub13 section (b), if the Secretary finds after reasonable

14 notice and opportunity for a hearing that the De15 partment of Hawaiian Home Lands has failed to

16 comply substantially with any provision of this title,

17 the Secretary shall—

18 ‘‘(A) terminate payments under this title

19 to the Department;

20 ‘‘(B) reduce payments under this title to

21 the Department by an amount equal to the

22 amount of such payments that were not ex23 pended in accordance with this title; or
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1 ‘‘(C) limit the availability of payments

2 under this title to programs, projects, or activi3 ties not affected by such failure to comply.

4 ‘‘(2) ACTIONS.—If the Secretary takes an ac5 tion under subparagraph (A), (B), or (C) of para6 graph (1), the Secretary shall continue that action

7 until the Secretary determines that the failure by

8 the Department to comply with the provision has

9 been remedied by the Department and the Depart10 ment is in compliance with that provision.

11 ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECHNICAL

12 INCAPACITY.—The Secretary may provide technical assist13 ance for the Department, either directly or indirectly, that

14 is designed to increase the capability and capacity of the

15 Director of the Department to administer assistance pro16 vided under this title in compliance with the requirements

17 under this title if the Secretary makes a finding under

18 subsection (a), but determines that the failure of the De19 partment to comply substantially with the provisions of

20 this title—

21 ‘‘(1) is not a pattern or practice of activities

22 constituting willful noncompliance; and

23 ‘‘(2) is a result of the limited capability or ca24 pacity of the Department of Hawaiian Home Lands.

25 ‘‘(c) REFERRAL FOR CIVIL ACTION.—
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1 ‘‘(1) AUTHORITY.—In lieu of, or in addition to,

2 any action that the Secretary may take under sub3 section (a), if the Secretary has reason to believe

4 that the Department of Hawaiian Home Lands has

5 failed to comply substantially with any provision of

6 this title, the Secretary may refer the matter to the

7 Attorney General of the United States with a rec8 ommendation that an appropriate civil action be in9 stituted.

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

11 under paragraph (1), the Attorney General may

12 bring a civil action in any United States district

13 court of appropriate jurisdiction for such relief as

14 may be appropriate, including an action—

15 ‘‘(A) to recover the amount of the assist16 ance furnished under this title that was not ex17 pended in accordance with this title; or

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

19 ‘‘(d) REVIEW.—

20 ‘‘(1) IN GENERAL.—If the Director receives no21 tice under subsection (a) of the termination, reduc22 tion, or limitation of payments under this Act, the

23 Director—

24 ‘‘(A) may, not later than 60 days after re25 ceiving such notice, file with the United States
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1 Court of Appeals for the Ninth Circuit, or in

2 the United States Court of Appeals for the Dis3 trict of Columbia, a petition for review of the

4 action of the Secretary; and

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

6 subparagraph (A), shall forthwith transmit cop7 ies of the petition to the Secretary and the At8 torney General of the United States, who shall

9 represent the Secretary in the litigation.

10 ‘‘(2) PROCEDURE.—

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

12 file in the court a record of the proceeding on

13 which the Secretary based the action, as pro14 vided in section 2112 of title 28, United States

15 Code.

16 ‘‘(B) OBJECTIONS.—No objection to the

17 action of the Secretary shall be considered by

18 the court unless the Department has registered

19 the objection before the Secretary.

20 ‘‘(3) DISPOSITION.—

21 ‘‘(A) COURT PROCEEDINGS.—

22 ‘‘(i) JURISDICTION OF COURT.—The

23 court shall have jurisdiction to affirm or

24 modify the action of the Secretary or to set

25 the action aside in whole or in part.
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1 ‘‘(ii) FINDINGS OF FACT.—If sup2 ported by substantial evidence on the

3 record considered as a whole, the findings

4 of fact by the Secretary shall be conclusive.

5 ‘‘(iii) ADDITION.—The court may

6 order evidence, in addition to the evidence

7 submitted for review under this subsection,

8 to be taken by the Secretary, and to be

9 made part of the record.

10 ‘‘(B) SECRETARY.—

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

12 reason of the additional evidence referred

13 to in subparagraph (A) and filed with the

14 court—

15 ‘‘(I) may—

16 ‘‘(aa) modify the findings of

17 fact of the Secretary; or

18 ‘‘(bb) make new findings;

19 and

20 ‘‘(II) shall file—

21 ‘‘(aa) such modified or new

22 findings; and

23 ‘‘(bb) the recommendation

24 of the Secretary, if any, for the

25 modification or setting aside of
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1 the original action of the Sec2 retary.

3 ‘‘(ii) FINDINGS.—The findings re4 ferred to in clause (i)(II)(bb) shall, with

5 respect to a question of fact, be considered

6 to be conclusive if those findings are—

7 ‘‘(I) supported by substantial evi8 dence on the record; and

9 ‘‘(II) considered as a whole.

10 ‘‘(4) FINALITY.—

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

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

13 under this subsection with the court—

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

15 be exclusive; and

16 ‘‘(ii) the judgment of the court shall

17 be final.

18 ‘‘(B) REVIEW BY SUPREME COURT.—A

19 judgment under subparagraph (A) shall be sub20 ject to review by the Supreme Court of the

21 United States upon writ of certiorari or certifi22 cation, as provided in section 1254 of title 28,

23 United States Code.

24 ‘‘SEC. 819. MONITORING OF COMPLIANCE.

25 ‘‘(a) ENFORCEABLE AGREEMENTS.—
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1 ‘‘(1) IN GENERAL.—The Director, through

2 binding contractual agreements with owners or other

3 authorized entities, shall ensure long-term compli4 ance with the provisions of this title.

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

6 paragraph (1) shall provide for—

7 ‘‘(A) to the extent allowable by Federal

8 and State law, the enforcement of the provi9 sions of this title by the Department and the

10 Secretary; and

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

12 referred to in paragraph (1).

13 ‘‘(b) PERIODIC MONITORING.—

14 ‘‘(1) IN GENERAL.—Not less frequently than

15 annually, the Director shall review the activities con16 ducted and housing assisted under this title to as17 sess compliance with the requirements of this title.

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

19 (1) shall include onsite inspection of housing to de20 termine compliance with applicable requirements.

21 ‘‘(3) RESULTS.—The results of each review

22 under paragraph (1) shall be—

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

24 the Director submitted to the Secretary under

25 section 820; and
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1 ‘‘(B) made available to the public.

2 ‘‘(c) PERFORMANCE MEASURES.—The Secretary

3 shall establish such performance measures as may be nec4 essary to assess compliance with the requirements of this

5 title.

6 ‘‘SEC. 820. PERFORMANCE REPORTS.

7 ‘‘(a) REQUIREMENT.—For each fiscal year, the Di8 rector shall—

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

10 made during that fiscal year in carrying out the

11 housing plan submitted by the Department under

12 section 803; and

13 ‘‘(2) submit a report to the Secretary (in a

14 form acceptable to the Secretary) describing the con15 clusions of the review.

16 ‘‘(b) CONTENT.—Each report submitted under this

17 section for a fiscal year shall—

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

19 to the Department of Hawaiian Home Lands for

20 that fiscal year;

21 ‘‘(2) assess the relationship of the use referred

22 to in paragraph (1) to the goals identified in the

23 housing plan;

24 ‘‘(3) indicate the programmatic accomplish25 ments of the Department; and
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1 ‘‘(4) describe the manner in which the Depart2 ment would change its housing plan submitted under

3 section 803 as a result of its experiences.

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

5 ‘‘(1) establish a date for submission of each re6 port under this section;

7 ‘‘(2) review each such report; and

8 ‘‘(3) with respect to each such report, make rec9 ommendations as the Secretary considers appro10 priate to carry out the purposes of this title.

11 ‘‘(d) PUBLIC AVAILABILITY.—

12 ‘‘(1) COMMENTS BY BENEFICIARIES.—In pre13 paring a report under this section, the Director shall

14 make the report publicly available to the bene15 ficiaries of the Hawaiian Homes Commission Act,

16 1920 (42 Stat. 108 et seq.) and give a sufficient

17 amount of time to permit those beneficiaries to com18 ment on that report before it is submitted to the

19 Secretary (in such manner and at such time as the

20 Director may determine).

21 ‘‘(2) SUMMARY OF COMMENTS.—The report

22 shall include a summary of any comments received

23 by the Director from beneficiaries under paragraph

24 (1) regarding the program to carry out the housing

25 plan.
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1 ‘‘SEC. 821. REVIEW AND AUDIT BY SECRETARY.

2 ‘‘(a) ANNUAL REVIEW.—

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

4 less frequently than on an annual basis, make such

5 reviews and audits as may be necessary or appro6 priate to determine whether—

7 ‘‘(A) the Director has—

8 ‘‘(i) carried out eligible activities

9 under this title in a timely manner;

10 ‘‘(ii) carried out and made certifi11 cations in accordance with the require12 ments and the primary objectives of this

13 title and with other applicable laws; and

14 ‘‘(iii) a continuing capacity to carry

15 out the eligible activities in a timely man16 ner;

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

18 housing plan submitted by the Director under

19 section 803; and

20 ‘‘(C) the performance reports of the De21 partment under section 821 are accurate.

22 ‘‘(2) ONSITE VISITS.—Each review conducted

23 under this section shall, to the extent practicable, in24 clude onsite visits by employees of the Department

25 of Housing and Urban Development.
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1 ‘‘(b) REPORT BY SECRETARY.—The Secretary shall

2 give the Department of Hawaiian Home Lands not less

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

4 this subsection. After taking into consideration the com5 ments of the Department, the Secretary may revise the

6 report and shall make the comments of the Department

7 and the report with any revisions, readily available to the

8 public not later than 30 days after receipt of the com9 ments of the Department.

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

11 make appropriate adjustments in the amount of annual

12 grants under this title in accordance with the findings of

13 the Secretary pursuant to reviews and audits under this

14 section. The Secretary may adjust, reduce, or withdraw

15 grant amounts, or take other action as appropriate in ac16 cordance with the reviews and audits of the Secretary

17 under this section, except that grant amounts already ex18 pended on affordable housing activities may not be recap19 tured or deducted from future assistance provided to the

20 Department of Hawaiian Home Lands.

21 ‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AUDITS.

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

23 Department of Hawaiian Home Lands involving grant

24 amounts under this title relate to amounts provided under

25 this title, those transactions may be audited by the Comp-
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1 troller General of the United States under such regula2 tions as may be prescribed by the Comptroller General.

3 The Comptroller General of the United States shall have

4 access to all books, accounts, records, reports, files, and

5 other papers, things, or property belonging to or in use

6 by the Department of Hawaiian Home Lands pertaining

7 to such financial transactions and necessary to facilitate

8 the audit.

9 ‘‘SEC. 823. REPORTS TO CONGRESS.

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

11 conclusion of each fiscal year in which assistance under

12 this title is made available, the Secretary shall submit to

13 Congress a report that contains—

14 ‘‘(1) a description of the progress made in ac15 complishing the objectives of this title;

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

17 under this title during the preceding fiscal year; and

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

19 loan guarantees under section 184A of the Housing

20 and Community Development Act of 1992.

21 ‘‘(b) RELATED REPORTS.—The Secretary may re22 quire the Director to submit to the Secretary such reports

23 and other information as may be necessary in order for

24 the Secretary to prepare the report required under sub25 section (a).
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1 ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated to the De3 partment of Housing and Urban Development for grants

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

5 of fiscal years 2001, 2002, 2003, 2004, and 2005.’’.

6 SEC. 724. LOAN GUARANTEES.

7 Subtitle E of title I of the Housing and Community

8 Development Act of 1992 is amended by inserting after

9 section 184 (12 U.S.C. 1715z–13a) the following:

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

11 HOUSING.

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

13 ‘‘(1) DEPARTMENT OF HAWAIIAN HOME

14 LANDS.—The term ‘Department of Hawaiian Home

15 Lands’ means the agency or department of the gov16 ernment of the State of Hawaii that is responsible

17 for the administration of the Hawaiian Homes Com18 mission Act, 1920 (42 Stat. 108 et seq.).

19 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en20 tity’ means a Native Hawaiian family, the Depart21 ment of Hawaiian Home Lands, the Office of Ha22 waiian Affairs, and private nonprofit or private for23 profit organizations experienced in the planning and

24 development of affordable housing for Native Hawai25 ians.
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1 ‘‘(3) FAMILY.—The term ‘family’ means one or

2 more persons maintaining a household, as the Sec3 retary shall by regulation provide.

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

5 Fund’ means the Native Hawaiian Housing Loan

6 Guarantee Fund established under subsection (i).

7 ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha8 waiian Home Lands’ means lands that—

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

10 Lands under section 204 of the Hawaiian

11 Homes Commission Act (42 Stat. 110); or

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

13 ‘‘(6) NATIVE HAWAIIAN.—The term ‘Native

14 Hawaiian’ means any individual who is—

15 ‘‘(A) a citizen of the United States; and

16 ‘‘(B) a descendant of the aboriginal people,

17 who, prior to 1778, occupied and exercised sov18 ereignty in the area that currently constitutes

19 the State of Hawaii, as evidenced by—

20 ‘‘(i) genealogical records;

21 ‘‘(ii) verification by kupuna (elders) or

22 kama’aina (long-term community resi23 dents); or

24 ‘‘(iii) birth records of the State of Ha25 waii.
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1 ‘‘(7) OFFICE OF HAWAIIAN AFFAIRS.—The

2 term ‘Office of Hawaiian Affairs’ means the entity

3 of that name established under the constitution of

4 the State of Hawaii.

5 ‘‘(b) AUTHORITY.—To provide access to sources of

6 private financing to Native Hawaiian families who other7 wise could not acquire housing financing because of the

8 unique legal status of the Hawaiian Home Lands or as

9 a result of a lack of access to private financial markets,

10 the Secretary may guarantee an amount not to exceed 100

11 percent of the unpaid principal and interest that is due

12 on an eligible loan under subsection (b).

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

14 is an eligible loan if that loan meets the following require15 ments:

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

17 only to a borrower who is—

18 ‘‘(A) a Native Hawaiian family;

19 ‘‘(B) the Department of Hawaiian Home

20 Lands;

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

22 ‘‘(D) a private nonprofit organization expe23 rienced in the planning and development of af24 fordable housing for Native Hawaiians.

25 ‘‘(2) ELIGIBLE HOUSING.—
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1 ‘‘(A) IN GENERAL.—The loan will be used

2 to construct, acquire, or rehabilitate not more

3 than 4-family dwellings that are standard hous4 ing and are located on Hawaiian Home Lands

5 for which a housing plan described in subpara6 graph (B) applies.

7 ‘‘(B) HOUSING PLAN.—A housing plan de8 scribed in this subparagraph is a housing plan

9 that—

10 ‘‘(i) has been submitted and approved

11 by the Secretary under section 803 of the

12 Native American Housing Assistance and

13 Self-Determination Act of 1996; and

14 ‘‘(ii) provides for the use of loan guar15 antees under this section to provide afford16 able homeownership housing on Hawaiian

17 Home Lands.

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

19 any collateral authorized under applicable Federal or

20 State law.

21 ‘‘(4) LENDERS.—

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

23 made only by a lender approved by, and meet24 ing qualifications established by, the Secretary,

25 including any lender described in subparagraph
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1 (B), except that a loan otherwise insured or

2 guaranteed by an agency of the Federal Gov3 ernment or made by the Department of Hawai4 ian Home Lands from amounts borrowed from

5 the United States shall not be eligible for a

6 guarantee under this section.

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

8 shall be considered to be lenders that have been

9 approved by the Secretary:

10 ‘‘(i) Any mortgagee approved by the

11 Secretary for participation in the single

12 family mortgage insurance program under

13 title II of the National Housing Act (12

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

15 ‘‘(ii) Any lender that makes housing

16 loans under chapter 37 of title 38, United

17 States Code, that are automatically guar18 anteed under section 3702(d) of title 38,

19 United States Code.

20 ‘‘(iii) Any lender approved by the Sec21 retary of Agriculture to make guaranteed

22 loans for single family housing under the

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

24 seq.).
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1 ‘‘(iv) Any other lender that is super2 vised, approved, regulated, or insured by

3 any agency of the Federal Government.

4 ‘‘(5) TERMS.—The loan shall—

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

6 years;

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

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

10 borrower and the lender and determined by the

11 Secretary to be reasonable, but not to exceed

12 the rate generally charged in the area (as deter13 mined by the Secretary) for home mortgage

14 loans not guaranteed or insured by any agency

15 or instrumentality of the Federal Government;

16 ‘‘(C) involve a principal obligation not

17 exceeding—

18 ‘‘(i) 97.75 percent of the appraised

19 value of the property as of the date the

20 loan is accepted for guarantee (or 98.75

21 percent if the value of the property is

22 $50,000 or less); or

23 ‘‘(ii) the amount approved by the Sec24 retary under this section; and
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1 ‘‘(D) involve a payment on account of the

2 property—

3 ‘‘(i) in cash or its equivalent; or

4 ‘‘(ii) through the value of any im5 provements to the property made through

6 the skilled or unskilled labor of the bor7 rower, as the Secretary shall provide.

8 ‘‘(d) CERTIFICATE OF GUARANTEE.—

9 ‘‘(1) APPROVAL PROCESS.—

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

11 approves any loan for guarantee under this sec12 tion, the lender shall submit the application for

13 the loan to the Secretary for examination.

14 ‘‘(B) APPROVAL.—If the Secretary ap15 proves the application submitted under sub16 paragraph (A), the Secretary shall issue a cer17 tificate under this subsection as evidence of the

18 loan guarantee approved.

19 ‘‘(2) STANDARD FOR APPROVAL.—The Sec20 retary may approve a loan for guarantee under this

21 section and issue a certificate under this subsection

22 only if the Secretary determines that there is a rea23 sonable prospect of repayment of the loan.

24 ‘‘(3) EFFECT.—
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1 ‘‘(A) IN GENERAL.—A certificate of guar2 antee issued under this subsection by the Sec3 retary shall be conclusive evidence of the eligi4 bility of the loan for guarantee under this sec5 tion and the amount of that guarantee.

6 ‘‘(B) EVIDENCE.—The evidence referred to

7 in subparagraph (A) shall be incontestable in

8 the hands of the bearer.

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

10 faith and credit of the United States is pledged

11 to the payment of all amounts agreed to be paid

12 by the Secretary as security for the obligations

13 made by the Secretary under this section.

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

15 subsection may not be construed—

16 ‘‘(A) to preclude the Secretary from estab17 lishing defenses against the original lender

18 based on fraud or material misrepresentation;

19 or

20 ‘‘(B) to bar the Secretary from estab21 lishing by regulations that are on the date of

22 issuance or disbursement, whichever is earlier,

23 partial defenses to the amount payable on the

24 guarantee.

25 ‘‘(e) GUARANTEE FEE.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall fix and

2 collect a guarantee fee for the guarantee of a loan

3 under this section, which may not exceed the amount

4 equal to 1 percent of the principal obligation of the

5 loan.

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

7 shall—

8 ‘‘(A) be paid by the lender at time of

9 issuance of the guarantee; and

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

11 the Secretary, to cover expenses and probable

12 losses.

13 ‘‘(3) DEPOSIT.—The Secretary shall deposit

14 any fees collected under this subsection in the Na15 tive Hawaiian Housing Loan Guarantee Fund estab16 lished under subsection (j).

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

18 under a guarantee provided under this section shall de19 crease or increase on a pro rata basis according to any

20 decrease or increase in the amount of the unpaid obliga21 tion under the provisions of the loan agreement involved.

22 ‘‘(g) TRANSFER AND ASSUMPTION.—Notwith23 standing any other provision of law, any loan guaranteed

24 under this section, including the security given for the

25 loan, may be sold or assigned by the lender to any finan-
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1 cial institution subject to examination and supervision by

2 an agency of the Federal Government or of any State or

3 the District of Columbia.

4 ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL

5 MONEY PENALTIES.—

6 ‘‘(1) IN GENERAL.—

7 ‘‘(A) GROUNDS FOR ACTION.—The Sec8 retary may take action under subparagraph (B)

9 if the Secretary determines that any lender or

10 holder of a guarantee certificate under sub11 section (c)—

12 ‘‘(i) has failed—

13 ‘‘(I) to maintain adequate ac14 counting records;

15 ‘‘(II) to service adequately loans

16 guaranteed under this section; or

17 ‘‘(III) to exercise proper credit or

18 underwriting judgment; or

19 ‘‘(ii) has engaged in practices other20 wise detrimental to the interest of a bor21 rower or the United States.

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

23 the Secretary that a holder of a guarantee cer24 tificate under subsection (c) has failed to carry

25 out an activity described in subparagraph (A)(i)
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1 or has engaged in practices described in sub2 paragraph (A)(ii), the Secretary may—

3 ‘‘(i) refuse, either temporarily or per4 manently, to guarantee any further loans

5 made by such lender or holder;

6 ‘‘(ii) bar such lender or holder from

7 acquiring additional loans guaranteed

8 under this section; and

9 ‘‘(iii) require that such lender or hold10 er assume not less than 10 percent of any

11 loss on further loans made or held by the

12 lender or holder that are guaranteed under

13 this section.

14 ‘‘(2) CIVIL MONEY PENALTIES FOR INTEN15 TIONAL VIOLATIONS.—

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

17 impose a civil monetary penalty on a lender or

18 holder of a guarantee certificate under sub19 section (d) if the Secretary determines that the

20 holder or lender has intentionally failed—

21 ‘‘(i) to maintain adequate accounting

22 records;

23 ‘‘(ii) to adequately service loans guar24 anteed under this section; or
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1 ‘‘(iii) to exercise proper credit or un2 derwriting judgment.

3 ‘‘(B) PENALTIES.—A civil monetary pen4 alty imposed under this paragraph shall be im5 posed in the manner and be in an amount pro6 vided under section 536 of the National Hous7 ing Act (12 U.S.C.A. 1735f–1) with respect to

8 mortgagees and lenders under that Act.

9 ‘‘(3) PAYMENT ON LOANS MADE IN GOOD

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

11 a loan was made in good faith, the Secretary may

12 not refuse to pay a lender or holder of a valid guar13 antee on that loan, without regard to whether the

14 lender or holder is barred under this subsection.

15 ‘‘(i) PAYMENT UNDER GUARANTEE.—

16 ‘‘(1) LENDER OPTIONS.—

17 ‘‘(A) IN GENERAL.—

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

19 a loan guaranteed under this section de20 faults on the loan, the holder of the guar21 antee certificate shall provide written no22 tice of the default to the Secretary.

23 ‘‘(ii) PAYMENT.—Upon providing the

24 notice required under clause (i), the holder

25 of the guarantee certificate shall be enti-
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1 tled to payment under the guarantee (sub2 ject to the provisions of this section) and

3 may proceed to obtain payment in one of

4 the following manners:

5 ‘‘(I) FORECLOSURE.—

6 ‘‘(aa) IN GENERAL.—The

7 holder of the certificate may ini8 tiate foreclosure proceedings

9 (after providing written notice of

10 that action to the Secretary).

11 ‘‘(bb) PAYMENT.—Upon a

12 final order by the court author13 izing foreclosure and submission

14 to the Secretary of a claim for

15 payment under the guarantee,

16 the Secretary shall pay to the

17 holder of the certificate the pro

18 rata portion of the amount guar19 anteed (as determined pursuant

20 to subsection (f)) plus reasonable

21 fees and expenses as approved by

22 the Secretary.

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

2 holder shall assign the obligation

3 and security to the Secretary.

4 ‘‘(II) NO FORECLOSURE.—

5 ‘‘(aa) IN GENERAL.—With6 out seeking foreclosure (or in any

7 case in which a foreclosure pro8 ceeding initiated under clause (i)

9 continues for a period in excess

10 of 1 year), the holder of the

11 guarantee may submit to the

12 Secretary a request to assign the

13 obligation and security interest to

14 the Secretary in return for pay15 ment of the claim under the

16 guarantee. The Secretary may

17 accept assignment of the loan if

18 the Secretary determines that the

19 assignment is in the best interest

20 of the United States.

21 ‘‘(bb) PAYMENT.—Upon as22 signment, the Secretary shall pay

23 to the holder of the guarantee

24 the pro rata portion of the
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1 amount guaranteed (as deter2 mined under subsection (f)).

3 ‘‘(cc) SUBROGATION.—The

4 rights of the Secretary shall be

5 subrogated to the rights of the

6 holder of the guarantee. The

7 holder shall assign the obligation

8 and security to the Secretary.

9 ‘‘(B) REQUIREMENTS.—Before any pay10 ment under a guarantee is made under sub11 paragraph (A), the holder of the guarantee

12 shall exhaust all reasonable possibilities of col13 lection. Upon payment, in whole or in part, to

14 the holder, the note or judgment evidencing the

15 debt shall be assigned to the United States and

16 the holder shall have no further claim against

17 the borrower or the United States. The Sec18 retary shall then take such action to collect as

19 the Secretary determines to be appropriate.

20 ‘‘(2) LIMITATIONS ON LIQUIDATION.—

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

22 on a loan guaranteed under this section that in23 volves a security interest in restricted Hawaiian

24 Home Land property, the mortgagee or the

25 Secretary shall only pursue liquidation after of-
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1 fering to transfer the account to another eligi2 ble Hawaiian family or the Department of Ha3 waiian Home Lands.

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

5 taken under subparagraph (A), the mortgagee

6 or the Secretary subsequently proceeds to liq7 uidate the account, the mortgagee or the Sec8 retary shall not sell, transfer, or otherwise dis9 pose of or alienate the property described in

10 subparagraph (A) except to another eligible Ha11 waiian family or to the Department of Hawai12 ian Home Lands.

13 ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE

14 FUND.—

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

16 the Treasury of the United States the Hawaiian

17 Housing Loan Guarantee Fund for the purpose of

18 providing loan guarantees under this section.

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

20 credited with—

21 ‘‘(A) any amount, claims, notes, mort22 gages, contracts, and property acquired by the

23 Secretary under this section, and any collections

24 and proceeds therefrom;
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1 ‘‘(B) any amounts appropriated pursuant

2 to paragraph (7);

3 ‘‘(C) any guarantee fees collected under

4 subsection (d); and

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

6 invested under paragraph (4).

7 ‘‘(3) USE.—Amounts in the Guarantee Fund

8 shall be available, to the extent provided in appro9 priations Acts, for—

10 ‘‘(A) fulfilling any obligations of the Sec11 retary with respect to loans guaranteed under

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

13 defined in section 502 of the Federal Credit Re14 form Act of 1990 (2 U.S.C. 661a)) of such

15 loans;

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

17 expenses necessary to make fiscal adjustment in

18 connection with the application and transmittal

19 of collections, and other expenses and advances

20 to protect the Secretary for loans which are

21 guaranteed under this section or held by the

22 Secretary;

23 ‘‘(C) acquiring such security property at

24 foreclosure sales or otherwise;
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1 ‘‘(D) paying administrative expenses in

2 connection with this section; and

3 ‘‘(E) reasonable and necessary costs of re4 habilitation and repair to properties that the

5 Secretary holds or owns pursuant to this sec6 tion.

7 ‘‘(4) INVESTMENT.—Any amounts in the Guar8 antee Fund determined by the Secretary to be in ex9 cess of amounts currently required at the time of the

10 determination to carry out this section may be in11 vested in obligations of the United States.

12 ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR13 ANTEE LOANS AND MORTGAGES.—

14 ‘‘(A) REQUIREMENT OF APPROPRIA15 TIONS.—The authority of the Secretary to enter

16 into commitments to guarantee loans under this

17 section shall be effective for any fiscal year to

18 the extent, or in such amounts as are, or have

19 been, provided in appropriations Acts, without

20 regard to the fiscal year for which such

21 amounts were appropriated.

22 ‘‘(B) LIMITATIONS ON COSTS OF GUARAN23 TEES.—The authority of the Secretary to enter

24 into commitments to guarantee loans under this

25 section shall be effective for any fiscal year only
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1 to the extent that amounts in the Guarantee

2 Fund are or have been made available in appro3 priations Acts to cover the costs (as that term

4 is defined in section 502 of the Federal Credit

5 Reform Act of 1990 (2 U.S.C. 661a)) of such

6 loan guarantees for such fiscal year. Any

7 amounts appropriated pursuant to this subpara8 graph shall remain available until expended.

9 ‘‘(C) LIMITATION ON OUTSTANDING AG10 GREGATE PRINCIPAL AMOUNT.—Subject to the

11 limitations in subparagraphs (A) and (B), the

12 Secretary may enter into commitments to guar13 antee loans under this section for each of fiscal

14 years 2001, 2002, 2003, 2004, and 2005 with

15 an aggregate outstanding principal amount not

16 exceeding $100,000,000 for each such fiscal

17 year.

18 ‘‘(6) LIABILITIES.—All liabilities and obliga19 tions of the assets credited to the Guarantee Fund

20 under paragraph (2)(A) shall be liabilities and obli21 gations of the Guarantee Fund.

22 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

23 There are authorized to be appropriated to the

24 Guarantee Fund to carry out this section such sums
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1 as may be necessary for each of fiscal years 2001,

2 2002, 2003, 2004, and 2005.

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

4 ‘‘(1) IN GENERAL.—The Secretary shall, by

5 regulation, establish housing safety and quality

6 standards to be applied for use under this section.

7 ‘‘(2) STANDARDS.—The standards referred to

8 in paragraph (1) shall—

9 ‘‘(A) provide sufficient flexibility to permit

10 the use of various designs and materials in

11 housing acquired with loans guaranteed under

12 this section; and

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

14 housing acquired in the manner described in

15 subparagraph (A) to—

16 ‘‘(i) be decent, safe, sanitary, and

17 modest in size and design;

18 ‘‘(ii) conform with applicable general

19 construction standards for the region in

20 which the housing is located;

21 ‘‘(iii) contain a plumbing system

22 that—

23 ‘‘(I) uses a properly installed sys24 tem of piping;
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1 ‘‘(II) includes a kitchen sink and

2 a partitional bathroom with lavatory,

3 toilet, and bath or shower; and

4 ‘‘(III) uses water supply, plumb5 ing, and sewage disposal systems that

6 conform to any minimum standards

7 established by the applicable county or

8 State;

9 ‘‘(iv) contain an electrical system

10 using wiring and equipment properly in11 stalled to safely supply electrical energy for

12 adequate lighting and for operation of ap13 pliances that conforms to any appropriate

14 county, State, or national code;

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

16 under the applicable locally adopted stand17 ards for size of dwelling units, except that

18 the Secretary, upon request of the Depart19 ment of Hawaiian Home Lands may waive

20 the size requirements under this para21 graph; and

22 ‘‘(vi) conform with the energy per23 formance requirements for new construc24 tion established by the Secretary under

25 section 526(a) of the National Housing
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1 Act (12 U.S.C.A. 1735f–4), unless the Sec2 retary determines that the requirements

3 are not applicable.

4 ‘‘(l) APPLICABILITY OF CIVIL RIGHTS STATUTES.—

5 To the extent that the requirements of title VI of the Civil

6 Rights Act of 1964 (42 U.S.C. 2000d et seq.) or of the

7 Fair Housing Act (42 U.S.C.A. 3601 et seq.) apply to a

8 guarantee provided under this subsection, nothing in the

9 requirements concerning discrimination on the basis of

10 race shall be construed to prevent the provision of the

11 guarantee to an eligible entity on the basis that the entity

12 serves Native Hawaiian families or is a Native Hawaiian

13 family.’’.

14 TITLE VIII—TRANSFER OF HUD15 HELD HOUSING TO LOCAL

16 GOVERNMENTS AND NON17 PROFIT ORGANIZATIONS

18 SEC. 801. TRANSFER OF UNOCCUPIED AND SUBSTANDARD

19 HUD-HELD HOUSING TO LOCAL GOVERN20 MENTS AND COMMUNITY DEVELOPMENT

21 CORPORATIONS.

22 Section 204 of the Departments of Veterans Affairs

23 and Housing and Urban Development, and Independent

24 Agencies Appropriations Act, 1997 (12 U.S.C. 1715z–

25 11a) is amended—
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1 (1) by striking ‘‘FLEXIBLE AUTHORITY.—’’ and

2 inserting ‘‘DISPOSITION OF HUD-OWNED PROP3 ERTIES. (a) FLEXIBLE AUTHORITY FOR MULTI4 FAMILY PROJECTS.—’’; and

5 (2) by adding at the end the following new sub6 section:

7 ‘‘(b) TRANSFER OF UNOCCUPIED AND SUBSTANDARD

8 HOUSING TO LOCAL GOVERNMENTS AND COMMUNITY

9 DEVELOPMENT CORPORATIONS.—

10 ‘‘(1) TRANSFER AUTHORITY.—Notwithstanding

11 the authority under subsection (a) and the last sen12 tence of section 204(g) of the National Housing Act

13 (12 U.S.C. 1710(g)), the Secretary of Housing and

14 Urban Development shall transfer ownership of any

15 qualified HUD property, subject to the requirements

16 of this section, to a unit of general local government

17 having jurisdiction for the area in which the prop18 erty is located or to a community development cor19 poration which operates within such a unit of gen20 eral local government in accordance with this sub21 section, but only to the extent that units of general

22 local government and community development cor23 porations consent to transfer and the Secretary de24 termines that such transfer is practicable.
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1 ‘‘(2) QUALIFIED HUD PROPERTIES.—For pur2 poses of this subsection, the term ‘qualified HUD

3 property’ means any property for which, as of the

4 date that notification of the property is first made

5 under paragraph (3)(B), not less than 6 months

6 have elapsed since the later of the date that the

7 property was acquired by the Secretary or the date

8 that the property was determined to be unoccupied

9 or substandard, that is owned by the Secretary and

10 is—

11 ‘‘(A) an unoccupied multifamily housing

12 project;

13 ‘‘(B) a substandard multifamily housing

14 project; or

15 ‘‘(C) an unoccupied single family property

16 that—

17 ‘‘(i) has been determined by the Sec18 retary not to be an eligible asset under sec19 tion 204(h) of the National Housing Act

20 (12 U.S.C. 1710(h)); or

21 ‘‘(ii) is an eligible asset under such

22 section 204(h), but—

23 ‘‘(I) is not subject to a specific

24 sale agreement under such section;

25 and
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1 ‘‘(II) has been determined by the

2 Secretary to be inappropriate for con3 tinued inclusion in the program under

4 such section 204(h) pursuant to para5 graph (10) of such section.

6 ‘‘(3) TIMING.—The Secretary shall establish

7 procedures that provide for—

8 ‘‘(A) time deadlines for transfers under

9 this subsection;

10 ‘‘(B) notification to units of general local

11 government and community development cor12 porations of qualified HUD properties in their

13 jurisdictions;

14 ‘‘(C) such units and corporations to ex15 press interest in the transfer under this sub16 section of such properties;

17 ‘‘(D) a right of first refusal for transfer of

18 qualified HUD properties to units of general

19 local government and community development

20 corporations, under which—

21 ‘‘(i) the Secretary shall establish a pe22 riod during which the Secretary may not

23 transfer such properties except to such

24 units and corporations;
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1 ‘‘(ii) the Secretary shall offer qualified

2 HUD properties that are single family

3 properties for purchase by units of general

4 local government at a cost of $1 for each

5 property, but only to the extent that the

6 costs to the Federal Government of dis7 posal at such price do not exceed the costs

8 to the Federal Government of disposing of

9 property subject to the procedures for sin10 gle family property established by the Sec11 retary pursuant to the authority under the

12 last sentence of section 204(g) of the Na13 tional Housing Act (12 U.S.C. 1710(g));

14 ‘‘(iii) the Secretary may accept an

15 offer to purchase a property made by a

16 community development corporation only if

17 the offer provides for purchase on a cost

18 recovery basis; and

19 ‘‘(iv) the Secretary shall accept an

20 offer to purchase such a property that is

21 made during such period by such a unit or

22 corporation and that complies with the re23 quirements of this paragraph;

24 ‘‘(E) a written explanation, to any unit of

25 general local government or community develop-
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1 ment corporation making an offer to purchase

2 a qualified HUD property under this subsection

3 that is not accepted, of the reason that such

4 offer was not acceptable.

5 ‘‘(4) OTHER DISPOSITION.—With respect to

6 any qualified HUD property, if the Secretary does

7 not receive an acceptable offer to purchase the prop8 erty pursuant to the procedure established under

9 paragraph (3), the Secretary shall dispose of the

10 property to the unit of general local government in

11 which property is located or to community develop12 ment corporations located in such unit of general

13 local government on a negotiated, competitive bid, or

14 other basis, on such terms as the Secretary deems

15 appropriate.

16 ‘‘(5) SATISFACTION OF INDEBTEDNESS.—Be17 fore transferring ownership of any qualified HUD

18 property pursuant to this subsection, the Secretary

19 shall satisfy any indebtedness incurred in connection

20 with the property to be transferred, by canceling the

21 indebtedness.

22 ‘‘(6) DETERMINATION OF STATUS OF PROP23 ERTIES.—To ensure compliance with the require24 ments of this subsection, the Secretary shall take the

25 following actions:
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1 ‘‘(A) UPON ENACTMENT.—Upon the enact2 ment of the American Homeownership and Eco3 nomic Opportunity Act of 2000, the Secretary

4 shall promptly assess each residential property

5 owned by the Secretary to determine whether

6 such property is a qualified HUD property.

7 ‘‘(B) UPON ACQUISITION.—Upon acquiring

8 any residential property, the Secretary shall

9 promptly determine whether the property is a

10 qualified HUD property.

11 ‘‘(C) UPDATES.—The Secretary shall peri12 odically reassess the residential properties

13 owned by the Secretary to determine whether

14 any such properties have become qualified

15 HUD properties.

16 ‘‘(7) TENANT LEASES.—This subsection shall

17 not affect the terms or the enforceability of any con18 tract or lease entered into with respect to any resi19 dential property before the date that such property

20 becomes a qualified HUD property.

21 ‘‘(8) USE OF PROPERTY.—Property transferred

22 under this subsection shall be used only for appro23 priate neighborhood revitalization efforts, including

24 homeownership, rental units, commercial space, and

25 parks, consistent with local zoning regulations, local
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1 building codes, and subdivision regulations and re2 strictions of record.

3 ‘‘(9) INAPPLICABILITY TO PROPERTIES MADE

4 AVAILABLE FOR HOMELESS.—Notwithstanding any

5 other provision of this subsection, this subsection

6 shall not apply to any properties that the Secretary

7 determines are to be made available for use by the

8 homeless pursuant to subpart E of part 291 of title

9 24, Code of Federal Regulations, during the period

10 that the properties are so available.

11 ‘‘(10) PROTECTION OF EXISTING CONTRACTS.—

12 This subsection may not be construed to alter, af13 fect, or annul any legally binding obligations entered

14 into with respect to a qualified HUD property before

15 the property becomes a qualified HUD property.

16 ‘‘(11) DEFINITIONS.—For purposes of this sub17 section, the following definitions shall apply:

18 ‘‘(A) COMMUNITY DEVELOPMENT COR19 PORATION.—The term ‘community development

20 corporation’ means a nonprofit organization

21 whose primary purpose is to promote commu22 nity development by providing housing opportu23 nities for low-income families.

24 ‘‘(B) COST RECOVERY BASIS.—The term

25 ‘cost recovery basis’ means, with respect to any
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1 sale of a residential property by the Secretary,

2 that the purchase price paid by the purchaser

3 is equal to or greater than the sum of (i) the

4 appraised value of the property, as determined

5 in accordance with such requirements as the

6 Secretary shall establish, and (ii) the costs in7 curred by the Secretary in connection with such

8 property during the period beginning on the

9 date on which the Secretary acquires title to the

10 property and ending on the date on which the

11 sale is consummated.

12 ‘‘(C) MULTIFAMILY HOUSING PROJECT.—

13 The term ‘multifamily housing project’ has the

14 meaning given the term in section 203 of the

15 Housing and Community Development Amend16 ments of 1978.

17 ‘‘(D) RESIDENTIAL PROPERTY.—The term

18 ‘residential property’ means a property that is

19 a multifamily housing project or a single family

20 property.

21 ‘‘(E) SECRETARY.—The term ‘Secretary’

22 means the Secretary of Housing and Urban De23 velopment.
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1 ‘‘(F) SEVERE PHYSICAL PROBLEMS.—The

2 term ‘severe physical problems’ means, with re3 spect to a dwelling unit, that the unit—

4 ‘‘(i) lacks hot or cold piped water, a

5 flush toilet, or both a bathtub and a show6 er in the unit, for the exclusive use of that

7 unit;

8 ‘‘(ii) on not less than three separate

9 occasions during the preceding winter

10 months, was uncomfortably cold for a pe11 riod of more than 6 consecutive hours due

12 to a malfunction of the heating system for

13 the unit;

14 ‘‘(iii) has no functioning electrical

15 service, exposed wiring, any room in which

16 there is not a functioning electrical outlet,

17 or has experienced three or more blown

18 fuses or tripped circuit breakers during the

19 preceding 90-day period;

20 ‘‘(iv) is accessible through a public

21 hallway in which there are no working

22 light fixtures, loose or missing steps or

23 railings, and no elevator; or

24 ‘‘(v) has severe maintenance problems,

25 including water leaks involving the roof,
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1 windows, doors, basement, or pipes or

2 plumbing fixtures, holes or open cracks in

3 walls or ceilings, severe paint peeling or

4 broken plaster, and signs of rodent infesta5 tion.

6 ‘‘(G) SINGLE FAMILY PROPERTY.—The

7 term ‘single family property’ means a 1- to 4-

8 family residence.

9 ‘‘(H) SUBSTANDARD.—The term ‘sub10 standard’ means, with respect to a multifamily

11 housing project, that 25 percent or more of the

12 dwelling units in the project have severe phys13 ical problems.

14 ‘‘(I) UNIT OF GENERAL LOCAL GOVERN15 MENT.—The term ‘unit of general local govern16 ment’ has the meaning given such term in sec17 tion 102(a) of the Housing and Community De18 velopment Act of 1974.

19 ‘‘(J) UNOCCUPIED.—The term ‘unoccu20 pied’ means, with respect to a residential prop21 erty, that the unit of general local government

22 having jurisdiction over the area in which the

23 project is located has certified in writing that

24 the property is not inhabited.

25 ‘‘(12) REGULATIONS.—
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1 ‘‘(A) INTERIM.—Not later than 30 days

2 after the date of the enactment of the American

3 Homeownership and Economic Opportunity Act

4 of 2000, the Secretary shall issue such interim

5 regulations as are necessary to carry out this

6 subsection.

7 ‘‘(B) FINAL.—Not later than 60 days after

8 the date of the enactment of the American

9 Homeownership and Economic Opportunity Act

10 of 2000, the Secretary shall issue such final

11 regulations as are necessary to carry out this

12 subsection.’’.

13 SEC. 802. TRANSFER OF HUD ASSETS IN REVITALIZATION

14 AREAS.

15 In carrying out the program under section 204(h) of

16 the National Housing Act (12 U.S.C. 1710(h)), upon the

17 request of the chief executive officer of a county or the

18 government of appropriate jurisdiction and not later than

19 60 days after such request is made, the Secretary of Hous20 ing and Urban Development shall designate as a revital21 ization area all portions of such county that meet the cri22 teria for such designation under paragraph (3) of such

23 section.
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1 TITLE IX—PRIVATE MORTGAGE

2 INSURANCE CANCELLATION

3 AND TERMINATION

4 SEC. 901. SHORT TITLE.

5 This title may be cited as the ‘‘Private Mortgage In6 surance Technical Corrections and Clarification Act’’.

7 SEC. 902. CHANGES IN AMORTIZATION SCHEDULE.

8 (a) TREATMENT OF ADJUSTABLE RATE MORT9 GAGES.—The Homeowners Protection Act of 1998 (12

10 U.S.C. 4901 et seq.) is amended—

11 (1) in section 2—

12 (A) in paragraph (2)(B)(i), by striking

13 ‘‘amortization schedules’’ and inserting ‘‘the

14 amortization schedule then in effect’’;

15 (B) in paragraph (16)(B), by striking

16 ‘‘amortization schedules’’ and inserting ‘‘the

17 amortization schedule then in effect’’;

18 (C) by redesignating paragraphs (6)

19 through (16) (as amended by the preceding pro20 visions of this paragraph) as paragraphs (8)

21 through (18), respectively; and

22 (D) by inserting after paragraph (5) the

23 following new paragraph:

24 ‘‘(6) AMORTIZATION SCHEDULE THEN IN EF25 FECT.—The term ‘amortization schedule then in ef-
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1 fect’ means, with respect to an adjustable rate mort2 gage, a schedule established at the time at which the

3 residential mortgage transaction is consummated or,

4 if such schedule has been changed or recalculated, is

5 the most recent schedule under the terms of the note

6 or mortgage, which shows—

7 ‘‘(A) the amount of principal and interest

8 that is due at regular intervals to retire the

9 principal balance and accrued interest over the

10 remaining amortization period of the loan; and

11 ‘‘(B) the unpaid balance of the loan after

12 each such scheduled payment is made.’’; and

13 (2) in section 3(f)(1)(B)(ii), by striking ‘‘amor14 tization schedules’’ and inserting ‘‘the amortization

15 schedule then in effect’’.

16 (b) TREATMENT OF BALLOON MORTGAGES.—Para17 graph (1) of section 2 of the Homeowners Protection Act

18 of 1998 (12 U.S.C. 4901(1)) is amended by adding at the

19 end the following new sentence: ‘‘A residential mortgage

20 that (A) does not fully amortize over the term of the obli21 gation, and (B) contains a conditional right to refinance

22 or modify the unamortized principal at the maturity date

23 of the term, shall be considered to be an adjustable rate

24 mortgage for purposes of this Act.’’.

25 (c) TREATMENT OF LOAN MODIFICATIONS.—
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1 (1) IN GENERAL.—Section 3 of the Home2 owners Protection Act of 1998 (12 U.S.C. 4902) is

3 amended—

4 (A) by redesignating subsections (d)

5 through (f) as subsections (e) through (g), re6 spectively; and

7 (B) by inserting after subsection (c) the

8 following new subsection:

9 ‘‘(d) TREATMENT OF LOAN MODIFICATIONS.—If a

10 mortgagor and mortgagee (or holder of the mortgage)

11 agree to a modification of the terms or conditions of a

12 loan pursuant to a residential mortgage transaction, the

13 cancellation date, termination date, or final termination

14 shall be recalculated to reflect the modified terms and con15 ditions of such loan.’’.

16 (2) CONFORMING AMENDMENTS.—Section 4(a)

17 of the Homeowners Protection Act of 1998 (12

18 U.S.C. 4903(a)) is amended—

19 (A) in paragraph (1)—

20 (i) in the matter preceding subpara21 graph (A), by striking ‘‘section 3(f)(1)’’

22 and inserting ‘‘section 3(g)(1)’’;

23 (ii) in subparagraph (A)(ii)(IV), by

24 striking ‘‘section 3(f)’’ and inserting ‘‘sec25 tion 3(g)’’; and
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1 (iii) in subparagraph (B)(iii), by strik2 ing ‘‘section 3(f)’’ and inserting ‘‘section

3 3(g)’’; and

4 (B) in paragraph (2), by striking ‘‘section

5 3(f)(1)’’ and inserting ‘‘section 3(g)(1)’’.

6 SEC. 903. DELETION OF AMBIGUOUS REFERENCES TO RESI7 DENTIAL MORTGAGES.

8 (a) TERMINATION OF PRIVATE MORTGAGE INSUR9 ANCE.—Section 3 of the Homeowners Protection Act of

10 1998 (12 U.S.C. 4902) is amended—

11 (1) in subsection (c), by inserting ‘‘on residen12 tial mortgage transactions’’ after ‘‘imposed’’; and

13 (2) in subsection (g) (as so redesignated by sec14 tion 902(c)(1)(A) of this title)—

15 (A) in paragraph (1), in the matter pre16 ceding subparagraph (A), by striking ‘‘mort17 gage or’’;

18 (B) in paragraph (2), by striking ‘‘mort19 gage or’’; and

20 (C) in paragraph (3), by striking ‘‘mort21 gage or’’ and inserting ‘‘residential mortgage or

22 residential’’.

23 (b) DISCLOSURE REQUIREMENTS.—Section 4 of the

24 Homeowners Protection Act of 1998 (12 U.S.C. 4903(a))

25 is amended—
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1 (1) in subsection (a)—

2 (A) in paragraph (1)—

3 (i) by striking ‘‘mortgage or’’ the first

4 place it appears; and

5 (ii) by striking ‘‘mortgage or’’ the sec6 ond place it appears and inserting ‘‘resi7 dential’’; and

8 (B) in paragraph (2), by striking ‘‘mort9 gage or’’ and inserting ‘‘residential’’;

10 (2) in subsection (c), by striking ‘‘paragraphs

11 (1)(B) and (3) of subsection (a)’’ and inserting

12 ‘‘subsection (a)(3)’’; and

13 (3) in subsection (d), by inserting before the pe14 riod at the end the following: ‘‘, which disclosures

15 shall relate to the mortgagor’s rights under this

16 Act’’.

17 (c) DISCLOSURE REQUIREMENTS FOR LENDER-PAID

18 MORTGAGE INSURANCE.—Section 6 of the Homeowners

19 Protection Act of 1998 (12 U.S.C. 4905) is amended—

20 (1) in subsection (c)—

21 (A) in the matter preceding paragraph (1),

22 by striking ‘‘a residential mortgage or’’; and

23 (B) in paragraph (2), by inserting ‘‘trans24 action’’ after ‘‘residential mortgage’’; and
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1 (2) in subsection (d), by inserting ‘‘transaction’’

2 after ‘‘residential mortgage’’.

3 SEC. 904. CANCELLATION RIGHTS AFTER CANCELLATION

4 DATE.

5 Section 3 of the Homeowners Protection Act of 1998

6 (12 U.S.C. 4902) is amended—

7 (1) in subsection (a)—

8 (A) in the matter preceding paragraph (1),

9 by inserting after ‘‘cancellation date’’ the fol10 lowing: ‘‘or any later date that the mortgagor

11 fulfills all of the requirements under paragraphs

12 (1) through (4)’’;

13 (B) in paragraph (2), by striking ‘‘and’’ at

14 the end;

15 (C) by redesignating paragraph (3) as

16 paragraph (4); and

17 (D) by inserting after paragraph (2) the

18 following new paragraph:

19 ‘‘(3) is current on the payments required by the

20 terms of the residential mortgage transaction; and’’;

21 and

22 (2) in subsection (e)(1)(B) (as so redesignated

23 by section 902(c)(1)(A) of this title), by striking

24 ‘‘subsection (a)(3)’’ and inserting ‘‘subsection

25 (a)(4)’’.
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1 SEC. 905. CLARIFICATION OF CANCELLATION AND TERMI2 NATION ISSUES AND LENDER PAID MORT3 GAGE INSURANCE DISCLOSURE REQUIRE4 MENTS.

5 (a) GOOD PAYMENT HISTORY.—Section 2(4) of the

6 Homeowners Protection Act of 1998 (12 U.S.C. 4901(4))

7 is amended—

8 (1) in subparagraph (A)—

9 (A) by inserting ‘‘the later of (i)’’ before

10 ‘‘the date’’; and

11 (B) by inserting ‘‘, or (ii) the date that the

12 mortgagor submits a request for cancellation

13 under section 3(a)(1)’’ before the semicolon;

14 and

15 (2) in subparagraph (B)—

16 (A) by inserting ‘‘the later of (i)’’ before

17 ‘‘the date’’; and

18 (B) by inserting ‘‘, or (ii) the date that the

19 mortgagor submits a request for cancellation

20 under section 3(a)(1)’’ before the period at the

21 end.

22 (b) AUTOMATIC TERMINATION.—Paragraph (2) of

23 section 3(b) of the Homeowners Protection Act of 1998

24 (12 U.S.C. 4902(b)(2)) is amended to read as follows:

25 ‘‘(2) if the mortgagor is not current on the ter26 mination date, on the first day of the first month be-
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1 ginning after the date that the mortgagor becomes

2 current on the payments required by the terms of

3 the residential mortgage transaction.’’

4 (c) PREMIUM PAYMENTS.—Section 3 of the Home5 owners Protection Act of 1998 (12 U.S.C. 4902) is

6 amended by adding at the end the following new sub7 section:

8 ‘‘(h) ACCRUED OBLIGATION FOR PREMIUM PAY9 MENTS.—The cancellation or termination under this sec10 tion of the private mortgage insurance of a mortgagor

11 shall not affect the rights of any mortgagee, servicer, or

12 mortgage insurer to enforce any obligation of such mort13 gagor for premium payments accrued prior to the date on

14 which such cancellation or termination occurred.’’.

15 SEC. 906. DEFINITIONS.

16 (a) REFINANCED.—Section 6(c)(1)(B)(ii) of the

17 Homeowners Protection Act of 1998 (12 U.S.C.

18 4905(c)(1)(B)(ii)) is amended by inserting after ‘‘refi19 nanced’’ the following: ‘‘(under the meaning given such

20 term in the regulations issued by the Board of Governors

21 of the Federal Reserve System to carry out the Truth in

22 Lending Act (15 U.S.C. 1601 et seq.))’’.

23 (b) MIDPOINT OF THE AMORTIZATION PERIOD.—

24 Section 2 of the Homeowners Protection Act of 1998 (12

25 U.S.C. 4901) is amended by inserting after paragraph (6)
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1 (as added by section 902(a)(1)(D) of this Act) the fol2 lowing new paragraph:

3 ‘‘(7) MIDPOINT OF THE AMORTIZATION PE4 RIOD.—The term ‘midpoint of the amortization pe5 riod’ means, with respect to a residential mortgage

6 transaction, the point in time that is halfway

7 through the period that begins upon the first day of

8 the amortization period established at the time a

9 residential mortgage transaction is consummated

10 and ends upon the completion of the entire period

11 over which the mortgage is scheduled to be amor12 tized.’’.

13 (c) ORIGINAL VALUE.—Section 2(12) of the Home14 owners Protection Act of 1998 (12 U.S.C. 4901(10)) (as

15 so redesignated by section 902(a)(1)(C) of this Act) is

16 amended—

17 (1) by inserting ‘‘transaction’’ after ‘‘a residen18 tial mortgage’’; and

19 (2) by adding at the end the following new sen20 tence: ‘‘In the case of a residential mortgage trans21 action for refinancing the principal residence of the

22 mortgagor, such term means only the appraised

23 value relied upon by the mortgagee to approve the

24 refinance transaction.’’.
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1 (d) PRINCIPAL RESIDENCE.—Section 2 of the Home2 owners Protection Act of 1998 (12 U.S.C. 4901) is

3 amended—

4 (1) in paragraph (14) (as so redesignated by

5 section 902(a)(1)(C) of this Act) by striking ‘‘pri6 mary’’ and inserting ‘‘principal’’; and

7 (2) in paragraph (15) (as so redesignated by

8 section 902(a)(1)(C) of this Act) by striking ‘‘pri9 mary’’ and inserting ‘‘principal’’;

10 TITLE X—RURAL HOUSING

11 HOMEOWNERSHIP

12 SEC. 1001. PROMISSORY NOTE REQUIREMENT UNDER

13 HOUSING REPAIR LOAN PROGRAM.

14 The fourth sentence of section 504(a) of the Housing

15 Act of 1949 (42 U.S.C. 1474(a)) is amended by striking

16 ‘‘$2,500’’ and inserting ‘‘$7,500’’.

17 SEC. 1002. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM

18 LABOR HOUSING LOANS.

19 The first sentence of section 514(a) of the Housing

20 Act of 1949 (42 U.S.C. 1484(a)) is amended by striking

21 ‘‘nonprofit limited partnership’’ and inserting ‘‘limited

22 partnership’’.
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1 SEC. 1003. PROJECT ACCOUNTING RECORDS AND PRAC2 TICES.

3 Section 515 of the Housing Act of 1949 (42 U.S.C.

4 1485) is amended by striking subsection (z) and inserting

5 the following new subsections:

6 ‘‘(z) ACCOUNTING AND RECORDKEEPING REQUIRE7 MENTS.—

8 ‘‘(1) ACCOUNTING STANDARDS.—The Secretary

9 shall require that borrowers in programs authorized

10 by this section maintain accounting records in ac11 cordance with generally accepted accounting prin12 ciples for all projects that receive funds from loans

13 made or guaranteed by the Secretary under this sec14 tion.

15 ‘‘(2) RECORD RETENTION REQUIREMENTS.—

16 The Secretary shall require that borrowers in pro17 grams authorized by this section retain for a period

18 of not less than 6 years and make available to the

19 Secretary in a manner determined by the Secretary,

20 all records required to be maintained under this sub21 section and other records identified by the Secretary

22 in applicable regulations.

23 ‘‘(aa) DOUBLE DAMAGES FOR UNAUTHORIZED USE

24 OF HOUSING PROJECTS ASSETS AND INCOME.—

25 ‘‘(1) ACTION TO RECOVER ASSETS OR IN26 COME.—
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1 ‘‘(A) IN GENERAL.—The Secretary may re2 quest the Attorney General to bring an action

3 in a United States district court to recover any

4 assets or income used by any person in violation

5 of the provisions of a loan made or guaranteed

6 by the Secretary under this section or in viola7 tion of any applicable statute or regulation.

8 ‘‘(B) IMPROPER DOCUMENTATION.—For

9 purposes of this subsection, a use of assets or

10 income in violation of the applicable loan, loan

11 guarantee, statute, or regulation shall include

12 any use for which the documentation in the

13 books and accounts does not establish that the

14 use was made for a reasonable operating ex15 pense or necessary repair of the project or for

16 which the documentation has not been main17 tained in accordance with the requirements of

18 the Secretary and in reasonable condition for

19 proper audit.

20 ‘‘(C) DEFINITION.—For the purposes of

21 this subsection, the term ‘person’ means—

22 ‘‘(i) any individual or entity that bor23 rows funds in accordance with programs

24 authorized by this section;
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1 ‘‘(ii) any individual or entity holding

2 25 percent or more interest of any entity

3 that borrows funds in accordance with pro4 grams authorized by this section; and

5 ‘‘(iii) any officer, director, or partner

6 of an entity that borrows funds in accord7 ance with programs authorized by this sec8 tion.

9 ‘‘(2) AMOUNT RECOVERABLE.—

10 ‘‘(A) IN GENERAL.—In any judgment fa11 vorable to the United States entered under this

12 subsection, the Attorney General may recover

13 double the value of the assets and income of the

14 project that the court determines to have been

15 used in violation of the provisions of a loan

16 made or guaranteed by the Secretary under this

17 section or any applicable statute or regulation,

18 plus all costs related to the action, including

19 reasonable attorney and auditing fees.

20 ‘‘(B) APPLICATION OF RECOVERED

21 FUNDS.—Notwithstanding any other provision

22 of law, the Secretary may use amounts recov23 ered under this subsection for activities author24 ized under this section and such funds shall re25 main available for such use until expended.
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1 ‘‘(3) TIME LIMITATION.—Notwithstanding any

2 other provision of law, an action under this sub3 section may be commenced at any time during the

4 6-year period beginning on the date that the Sec5 retary discovered or should have discovered the vio6 lation of the provisions of this section or any related

7 statutes or regulations.

8 ‘‘(4) CONTINUED AVAILABILITY OF OTHER

9 REMEDIES.—The remedy provided in this subsection

10 is in addition to and not in substitution of any other

11 remedies available to the Secretary or the United

12 States.’’.

13 SEC. 1004. DEFINITION OF RURAL AREA.

14 The second sentence of section 520 of the Housing

15 Act of 1949 (42 U.S.C. 1490) is amended by striking

16 ‘‘year 2000’’ and inserting ‘‘year 2010’’.

17 SEC. 1005. OPERATING ASSISTANCE FOR MIGRANT FARM18 WORKERS PROJECTS.

19 The last sentence of section 521(a)(5)(A) of the

20 Housing Act of 1949 (42 U.S.C. 1490a(a)(5)(A)) is

21 amended by striking ‘‘project’’ and inserting ‘‘tenant or

22 unit’’.
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1 SEC. 1006. MULTIFAMILY RENTAL HOUSING LOAN GUAR2 ANTEE PROGRAM.

3 Section 538 of the Housing Act of 1949 (42 U.S.C.

4 1490p–2) is amended—

5 (1) in subsection (c), by inserting ‘‘an Indian

6 organization,’’ after ‘‘thereof,’’;

7 (2) in subsection (f), by striking paragraph (1)

8 and inserting the following new paragraph:

9 ‘‘(1) be made for a period of not less than 25

10 nor greater than 40 years from the date the loan

11 was made and may provide for amortization of the

12 loan over a period of not to exceed 40 years with a

13 final payment of the balance due at the end of the

14 loan term;’’;

15 (3) in subsection (i)(2), by striking ‘‘(A) con16 veyance to the Secretary’’ and all that follows

17 through ‘‘(C) assignment’’ and inserting ‘‘(A) sub18 mission to the Secretary of a claim for payment

19 under the guarantee, and (B) assignment’’;

20 (4) in subsection (s), by adding at the end the

21 following new subsection:

22 ‘‘(4) INDIAN ORGANIZATION.—The term ‘Indian

23 organization’ means the governing body of an Indian

24 tribe, band, group, pueblo, or community, including

25 native villages or native groups, as defined by the

26 Alaska Claims Settlement Act (43 U.S.C. 1601 et
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1 seq.), (including corporations organized by the

2 Kenai, Juneau, Sitka, and Kodiak) which is eligible

3 for services from the Bureau of Indian Affairs or an

4 entity established or recognized by the governing

5 body for the purpose of financing economic develop6 ment.’’;

7 (5) in subsection (t), by inserting before the pe8 riod at the end the following: ‘‘to provide guarantees

9 under this section for eligible loans having an aggre10 gate principal amount of $500,000,000’’;

11 (6) by striking subsection (l);

12 (7) by redesignating subsections (m) through

13 (u) as subsections (l) through (t), respectively;

14 (8) by adding at the end the following new sub15 sections:

16 ‘‘(u) FEE AUTHORITY.—Any amounts collected by

17 the Secretary pursuant to the fees charged to lenders for

18 loan guarantees issued under this section shall be used

19 to offset costs (as defined by section 502 of the Congres20 sional Budget Act of 1974 (2 U.S.C. 661a)) of loan guar21 antees made under this section.

22 ‘‘(v) DEFAULTS OF LOANS SECURED BY RESERVA23 TION LANDS.—In the event of a default involving a loan

24 to an Indian tribe or tribal corporation made under this

25 section which is secured by an interest in land within such
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1 tribe’s reservation (as determined by the Secretary of the

2 Interior), including a community in Alaska incorporated

3 by the Secretary of the Interior pursuant to the Indian

4 Reorganization Act (25 U.S.C. 461 et seq.), the lender

5 shall only pursue liquidation after offering to transfer the

6 account to an eligible tribal member, the tribe, or the In7 dian housing authority serving the tribe. If the lender sub8 sequently proceeds to liquidate the account, the lender

9 shall not sell, transfer, or otherwise dispose of or alienate

10 the property except to one of the entities described in the

11 preceding sentence.’’.

12 SEC. 1007. ENFORCEMENT PROVISIONS.

13 (a) IN GENERAL.—Title V of the Housing Act of

14 1949 (42 U.S.C. 1471 et seq.) is amended by adding after

15 section 542 the following:

16 ‘‘SEC. 543. ENFORCEMENT PROVISIONS.

17 ‘‘(a) EQUITY SKIMMING.—

18 ‘‘(1) CRIMINAL PENALTY.—Whoever, as an

19 owner, agent, employee, or manager, or is otherwise

20 in custody, control, or possession of property that is

21 security for a loan made or guaranteed under this

22 title, willfully uses, or authorizes the use, of any part

23 of the rents, assets, proceeds, income, or other funds

24 derived from such property, for any purpose other

25 than to meet actual, reasonable, and necessary ex-
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1 penses of the property, or for any other purpose not

2 authorized by this title or the regulations adopted

3 pursuant to this title, shall be fined under title 18,

4 United States Code, or imprisoned not more than 5

5 years, or both.

6 ‘‘(2) CIVIL SANCTIONS.—An entity or individual

7 who as an owner, operator, employee, or manager, or

8 who acts as an agent for a property that is security

9 for a loan made or guaranteed under this title where

10 any part of the rents, assets, proceeds, income, or

11 other funds derived from such property are used for

12 any purpose other than to meet actual, reasonable,

13 and necessary expenses of the property, or for any

14 other purpose not authorized by this title or the reg15 ulations adopted pursuant to this title, shall be sub16 ject to a fine of not more than $25,000 per viola17 tion. The sanctions provided in this paragraph may

18 be imposed in addition to any other civil sanctions

19 or civil monetary penalties authorized by law.

20 ‘‘(b) CIVIL MONETARY PENALTIES.—

21 ‘‘(1) IN GENERAL.—The Secretary may, after

22 notice and opportunity for a hearing, impose a civil

23 monetary penalty in accordance with this subsection

24 against any individual or entity, including its own25 ers, officers, directors, general partners, limited
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1 partners, or employees, who knowingly and materi2 ally violate, or participate in the violation of, the

3 provisions of this title, the regulations issued by the

4 Secretary pursuant to this title, or agreements made

5 in accordance with this title, by—

6 ‘‘(A) submitting information to the Sec7 retary that is false;

8 ‘‘(B) providing the Secretary with false

9 certifications;

10 ‘‘(C) failing to submit information re11 quested by the Secretary in a timely manner;

12 ‘‘(D) failing to maintain the property sub13 ject to loans made or guaranteed under this

14 title in good repair and condition, as deter15 mined by the Secretary;

16 ‘‘(E) failing to provide management for a

17 project which received a loan made or guaran18 teed under this title that is acceptable to the

19 Secretary; or

20 ‘‘(F) failing to comply with the provisions

21 of applicable civil rights statutes and regula22 tions.

23 ‘‘(2) CONDITIONS FOR RENEWAL OR EXTEN24 SION.—The Secretary may require that expiring loan

25 or assistance agreements entered into under this
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1 title shall not be renewed or extended unless the

2 owner executes an agreement to comply with addi3 tional conditions prescribed by the Secretary, or exe4 cutes a new loan or assistance agreement in the

5 form prescribed by the Secretary.

6 ‘‘(3) AMOUNT.—

7 ‘‘(A) IN GENERAL.—The amount of a civil

8 monetary penalty imposed under this subsection

9 shall not exceed the greater of—

10 ‘‘(i) twice the damages the Depart11 ment of Agriculture, the guaranteed lend12 er, or the project that is secured for a loan

13 under this section suffered or would have

14 suffered as a result of the violation; or

15 ‘‘(ii) $50,000 per violation.

16 ‘‘(B) DETERMINATION.—In determining

17 the amount of a civil monetary penalty under

18 this subsection, the Secretary shall take into

19 consideration—

20 ‘‘(i) the gravity of the offense;

21 ‘‘(ii) any history of prior offenses by

22 the violator (including offenses occurring

23 prior to the enactment of this section);

24 ‘‘(iii) the ability of the violator to pay

25 the penalty;
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1 ‘‘(iv) any injury to tenants;

2 ‘‘(v) any injury to the public;

3 ‘‘(vi) any benefits received by the vio4 lator as a result of the violation;

5 ‘‘(vii) deterrence of future violations;

6 and

7 ‘‘(viii) such other factors as the Sec8 retary may establish by regulation.

9 ‘‘(4) PAYMENT OF PENALTIES.—No payment of

10 a penalty assessed under this section may be made

11 from funds provided under this title or from funds

12 of a project which serve as security for a loan made

13 or guaranteed under this title.

14 ‘‘(5) REMEDIES FOR NONCOMPLIANCE.—

15 ‘‘(A) JUDICIAL INTERVENTION.—If a per16 son or entity fails to comply with a final deter17 mination by the Secretary imposing a civil mon18 etary penalty under this subsection, the Sec19 retary may request the Attorney General of the

20 United States to bring an action in an appro21 priate United States district court to obtain a

22 monetary judgment against such individual or

23 entity and such other relief as may be available.

24 The monetary judgment may, in the court’s dis25 cretion, include the attorney’s fees and other
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1 expenses incurred by the United States in con2 nection with the action.

3 ‘‘(B) REVIEWABILITY OF DETERMINA4 TION.—In an action under this paragraph, the

5 validity and appropriateness of a determination

6 by the Secretary imposing the penalty shall not

7 be subject to review.’’.

8 (b) CONFORMING AMENDMENT.—Section 514 of the

9 Housing Act of 1949 (42 U.S.C. 1484) is amended by

10 striking subsection (j).

11 SEC. 1008. AMENDMENTS TO TITLE 18 OF UNITED STATES

12 CODE.

13 (a) MONEY LAUNDERING.—Section 1956(c)(7)(D) of

14 title 18, United States Code, is amended by inserting ‘‘any

15 violation of section 543(a)(1) of the Housing Act of 1949

16 (relating to equity skimming),’’ after ‘‘coupons having a

17 value of not less than $5,000,’’.

18 (b) OBSTRUCTION OF FEDERAL AUDITS.—Section

19 1516(a) of title 18, United States Code, is amended by

20 inserting ‘‘or relating to any property that is security for

21 a loan that is made or guaranteed under title V of the

22 Housing Act of 1949,’’ before ‘‘shall be fined under this

23 title’’.
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1 TITLE XI—MANUFACTURED

2 HOUSING IMPROVEMENT

3 SEC. 1101. SHORT TITLE AND REFERENCES.

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

5 ‘‘Manufactured Housing Improvement Act’’.

6 (b) REFERENCES.—Whenever in this title an amend7 ment is expressed in terms of an amendment to, or repeal

8 of, an Act, a section, or any other provision, the reference

9 shall be considered to be made to that section or other

10 provision of the National Manufactured Housing Con11 struction and Safety Standards Act of 1974 (42 U.S.C.

12 5401 et seq.).

13 SEC. 1102. FINDINGS AND PURPOSES.

14 Section 602 (42 U.S.C. 5401) is amended to read as

15 follows:

16 ‘‘FINDINGS AND PURPOSES

17 ‘‘SEC. 602. (a) FINDINGS.—The Congress finds

18 that—

19 ‘‘(1) manufactured housing plays a vital role in

20 meeting the housing needs of the Nation; and

21 ‘‘(2) manufactured homes provide a significant

22 resource for affordable homeownership and rental

23 housing accessible to all Americans.

24 ‘‘(b) PURPOSES.—The purposes of this title are—
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1 ‘‘(1) to protect the quality, durability, safety,

2 and affordability of manufactured homes;

3 ‘‘(2) to facilitate the availability of affordable

4 manufactured homes and to increase homeownership

5 for all Americans;

6 ‘‘(3) to provide for the establishment of prac7 tical, uniform, and, to the extent possible, perform8 ance-based Federal construction standards;

9 ‘‘(4) to encourage innovative and cost-effective

10 construction techniques;

11 ‘‘(5) to protect residents of manufactured

12 homes with respect to personal injuries and the

13 amount of insurance costs and property damages in

14 manufactured housing, consistent with the other

15 purposes of this section;

16 ‘‘(6) to establish a balanced consensus process

17 for the development, revision, and interpretation of

18 Federal construction and safety standards for manu19 factured homes and related regulations for the en20 forcement of such standards;

21 ‘‘(7) to ensure uniform and effective enforce22 ment of Federal construction and safety standards

23 for manufactured homes; and

24 ‘‘(8) to ensure that the public interest in, and

25 need for, affordable manufactured housing is duly
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1 considered in all determinations relating to the Fed2 eral standards and their enforcement.’’.

3 SEC. 1103. DEFINITIONS.

4 (a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is

5 amended—

6 (1) in paragraph (2), by striking ‘‘dealer’’ and

7 inserting ‘‘retailer’’;

8 (2) in paragraph (12), by striking ‘‘and’’ at the

9 end;

10 (3) in paragraph (13), by striking the period at

11 the end and inserting a semicolon; and

12 (4) by adding at the end the following new

13 paragraphs:

14 ‘‘(14) ‘administering organization’ means the

15 recognized, voluntary, private sector, consensus

16 standards body with specific experience in developing

17 model residential building codes and standards in18 volving all disciplines regarding construction and

19 safety that administers the consensus standards de20 velopment process;

21 ‘‘(15) ‘consensus committee’ means the com22 mittee established under section 604(a)(3);

23 ‘‘(16) ‘consensus standards development proc24 ess’ means the process by which additions, revisions,

25 and interpretations to the Federal manufactured
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1 home construction and safety standards and enforce2 ment regulations shall be developed and rec3 ommended to the Secretary by the consensus com4 mittee;

5 ‘‘(17) ‘primary inspection agency’ means a

6 State agency or private organization that has been

7 approved by the Secretary to act as a design ap8 proval primary inspection agency or a production in9 spection primary inspection agency, or both;

10 ‘‘(18) ‘design approval primary inspection agen11 cy’ means a State agency or private organization

12 that has been approved by the Secretary to evaluate

13 and either approve or disapprove manufactured

14 home designs and quality control procedures;

15 ‘‘(19) ‘production inspection primary inspection

16 agency’ means a State agency or private organiza17 tion that has been approved by the Secretary to

18 evaluate the ability of manufactured home manufac19 turing plants to comply with approved quality con20 trol procedures and with the Federal manufactured

21 home construction and safety standards promulgated

22 hereunder, including the inspection of homes in the

23 plant;

24 ‘‘(20) ‘installation standards’ means reasonable

25 specifications for the installation of a manufactured
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1 home at the place of occupancy to ensure proper

2 siting, the joining of all sections of the home, and

3 the installation of stabilization, support, or anchor4 ing systems; and

5 ‘‘(21) ‘monitoring’ means the process of peri6 odic review of the primary inspection agencies, by

7 the Secretary or by a State agency under an ap8 proved State plan pursuant to section 623, in ac9 cordance with regulations promulgated under this

10 title, giving due consideration to the recommenda11 tions of the consensus committee as provided in sec12 tion 604(b), which process shall be for the purpose

13 of ensuring that the primary inspection agencies are

14 discharging their duties under this title.’’.

15 (b) CONFORMING AMENDMENTS.—The Act is

16 amended—

17 (1) in section 613 (42 U.S.C. 5412), by striking

18 ‘‘dealer’’ each place it appears and inserting ‘‘re19 tailer’’;

20 (2) in section 614(f) (42 U.S.C. 5413(f)), by

21 striking ‘‘dealer’’ each place it appears and inserting

22 ‘‘retailer’’;

23 (3) in section 615 (42 U.S.C. 5414)—

24 (A) in subsection (b)(1), by striking ‘‘deal25 er’’ and inserting ‘‘retailer’’;
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1 (B) in subsection (b)(3), by striking ‘‘deal2 er or dealers’’ and inserting ‘‘retailer or retail3 ers’’; and

4 (C) in subsections (d) and (f), by striking

5 ‘‘dealers’’ each place it appears and inserting

6 ‘‘retailers’’;

7 (4) in section 616 (42 U.S.C. 5415), by striking

8 ‘‘dealer’’ and inserting ‘‘retailer’’; and

9 (5) in section 623(c)(9), by striking ‘‘dealers’’

10 and inserting ‘‘retailers’’.

11 SEC. 1104. FEDERAL MANUFACTURED HOME CONSTRUC12 TION AND SAFETY STANDARDS.

13 Section 604 (42 U.S.C. 5403) is amended—

14 (1) by striking subsections (a) and (b) and in15 serting the following new subsections:

16 ‘‘(a) ESTABLISHMENT.—

17 ‘‘(1) AUTHORITY.—The Secretary shall estab18 lish, by order, appropriate Federal manufactured

19 home construction and safety standards, each of

20 which—

21 ‘‘(A) shall—

22 ‘‘(i) be reasonable and practical;

23 ‘‘(ii) meet high standards of protec24 tion consistent with the enumerated pur25 poses of this title; and
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1 ‘‘(iii) where appropriate, be perform2 ance-based and objectively stated; and

3 ‘‘(B) except as provided in subsection (b),

4 shall be established in accordance with the con5 sensus standards development process.

6 ‘‘(2) CONSENSUS STANDARDS AND REGU7 LATORY DEVELOPMENT PROCESS.—

8 ‘‘(A) INITIAL AGREEMENT.—Not later

9 than 180 days after the date of the enactment

10 of the Manufactured Housing Improvement

11 Act, the Secretary shall enter into a contract

12 with an administering organization. The con13 tractual agreement shall—

14 ‘‘(i) terminate on the date on which a

15 contract is entered into under subpara16 graph (B); and

17 ‘‘(ii) require the administering organi18 zation to—

19 ‘‘(I) recommend the initial mem20 bers of the consensus committee

21 under paragraph (3);

22 ‘‘(II) administer the consensus

23 standards development process until

24 the termination of that agreement;

25 and
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1 ‘‘(III) administer the consensus

2 development and interpretation proc3 ess for procedural and enforcement

4 regulations and regulations specifying

5 the permissible scope and conduct of

6 monitoring until the termination of

7 that agreement.

8 ‘‘(B) COMPETITIVELY PROCURED CON9 TRACT.—Upon the expiration of the 4-year pe10 riod beginning on the date on which all mem11 bers of the consensus committee are appointed

12 under paragraph (3), the Secretary shall, using

13 competitive procedures (as such term is defined

14 in section 4 of the Office of Federal Procure15 ment Policy Act), enter into a competitively

16 awarded contract with an administering organi17 zation. The administering organization shall ad18 minister the consensus process for the develop19 ment and interpretation of the Federal stand20 ards, the procedural and enforcement regula21 tions and regulations specifying the permissible

22 scope and conduct of monitoring in accordance

23 with this title.

24 ‘‘(C) PERFORMANCE REVIEW.—The

25 Secretary—
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1 ‘‘(i) shall periodically review the per2 formance of the administering organiza3 tion; and

4 ‘‘(ii) may replace the administering

5 organization with another qualified tech6 nical or building code organization, pursu7 ant to competitive procedures, if the Sec8 retary determines in writing that the ad9 ministering organization is not fulfilling

10 the terms of the agreement or contract to

11 which the administering organization is

12 subject or upon the expiration of the

13 agreement or contract.

14 ‘‘(3) CONSENSUS COMMITTEE.—

15 ‘‘(A) PURPOSE.—There is established a

16 committee to be known as the ‘consensus com17 mittee’, which shall, in accordance with this

18 title—

19 ‘‘(i) provide periodic recommendations

20 to the Secretary to adopt, revise, and inter21 pret the Federal manufactured housing

22 construction and safety standards in ac23 cordance with this subsection;

24 ‘‘(ii) provide periodic recommenda25 tions to the Secretary to adopt, revise, and
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1 interpret the procedural and enforcement

2 regulations, including regulations speci3 fying the permissible scope and conduct of

4 monitoring in accordance with this sub5 section; and

6 ‘‘(iii) be organized and carry out its

7 business in a manner that guarantees a

8 fair opportunity for the expression and

9 consideration of various positions and for

10 public participation.

11 ‘‘(B) MEMBERSHIP.—The consensus com12 mittee shall be composed of—

13 ‘‘(i) 21 voting members appointed by

14 the Secretary, after consideration of the

15 recommendations made by the admin16 istering organization, from among individ17 uals who are qualified by background and

18 experience to participate in the work of the

19 consensus committee; and

20 ‘‘(ii) one member appointed by the

21 Secretary to represent the Secretary on the

22 consensus committee, who shall be a non23 voting member.

24 ‘‘(C) DISAPPROVAL.—The Secretary shall

25 state, in writing, the reasons for failing to ap-
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1 point any individual recommended under para2 graph (2)(A)(ii)(I).

3 ‘‘(D) SELECTION PROCEDURES AND RE4 QUIREMENTS.—Each member shall be ap5 pointed in accordance with the selection proce6 dures, which shall be established by the Sec7 retary and which shall be based on the proce8 dures for consensus committees promulgated by

9 the American National Standards Institute (or

10 successor organization), to ensure equal rep11 resentation on the consensus committee of the

12 following interest categories:

13 ‘‘(i) PRODUCERS.—Seven producers or

14 retailers of manufactured housing.

15 ‘‘(ii) USERS.—Seven persons rep16 resenting consumer interests, such as con17 sumer organizations, recognized consumer

18 leaders, and owners who are residents of

19 manufactured homes.

20 ‘‘(iii) GENERAL INTEREST AND PUB21 LIC OFFICIALS.—Seven general interest

22 and public official members.

23 ‘‘(E) BALANCING OF INTERESTS.—
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1 ‘‘(i) IN GENERAL.—In order to

2 achieve a proper balance of interests on

3 the consensus committee—

4 ‘‘(I) the Secretary shall ensure

5 that all directly and materially af6 fected interests have the opportunity

7 for fair and equitable participation

8 without dominance by any single in9 terest; and

10 ‘‘(II) the Secretary may reject

11 the appointment of any one or more

12 individuals in order to ensure that

13 there is not dominance by any single

14 interest.

15 ‘‘(ii) DOMINANCE DEFINED.—In this

16 subparagraph, the term ‘dominance’ means

17 a position or exercise of dominant author18 ity, leadership, or influence by reason of

19 superior leverage, strength, or representa20 tion.

21 ‘‘(F) ADDITIONAL QUALIFICATIONS.—

22 ‘‘(i) FINANCIAL INDEPENDENCE.—No

23 individual appointed under subparagraph

24 (D)(ii) shall have, and three of individuals
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1 appointed under subparagraph (D)(iii)

2 shall not have—

3 ‘‘(I) a significant financial inter4 est in any segment of the manufac5 tured housing industry; or

6 ‘‘(II) a significant relationship to

7 any person engaged in the manufac8 tured housing industry.

9 ‘‘(ii) POST-EMPLOYMENT BAN.—An

10 individual appointed under clause (ii) or

11 (iii) of subparagraph (D) shall be subject

12 to a ban disallowing compensation from

13 the manufactured housing industry during

14 the period of, and for the 1-year period

15 after, membership of that individual on the

16 consensus committee.

17 ‘‘(G) MEETINGS.—

18 ‘‘(i) NOTICE; OPEN TO PUBLIC.—The

19 consensus committee shall provide advance

20 notice of each meeting of the consensus

21 committee to the Secretary and publish ad22 vance notice of each such meeting in the

23 Federal Register. All meetings of the con24 sensus committee shall be open to the pub25 lic.
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1 ‘‘(ii) REIMBURSEMENT.—Members of

2 the consensus committee in attendance at

3 the meetings shall be reimbursed for their

4 actual expenses as authorized by section

5 5703 of title 5, United States Code, for

6 persons employed intermittently in Govern7 ment service.

8 ‘‘(H) INAPPLICABILITY OF OTHER LAWS.—

9 ‘‘(i) ADVISORY COMMITTEE ACT.—The

10 consensus committee shall not be consid11 ered to be an advisory committee for pur12 poses of the Federal Advisory Committee

13 Act.

14 ‘‘(ii) TITLE 18.—The members of the

15 consensus committee shall not be subject

16 to section 203, 205, 207, or 208 of title

17 18, United States Code, to the extent of

18 their proper participation as members of

19 the consensus committee.

20 ‘‘(iii) ETHICS IN GOVERNMENT ACT

21 OF 1978.—The Ethics in Government Act

22 of 1978 shall not apply to members of the

23 consensus committee to the extent of their

24 proper participation as members of the

25 consensus committee.
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1 ‘‘(I) ADMINISTRATION.—The consensus

2 committee and the administering organization

3 shall—

4 ‘‘(i) operate in conformance with the

5 procedures established by the American

6 National Standards Institute for the devel7 opment and coordination of American Na8 tional Standards; and

9 ‘‘(ii) apply to the American National

10 Standards Institute and take such other

11 actions as may be necessary to obtain ac12 creditation from the American National

13 Standards Institute.

14 ‘‘(J) STAFF.—The administering organiza15 tion shall, upon the request of the consensus

16 committee, provide reasonable staff resources to

17 the consensus committee. Upon a showing of

18 need, the Secretary shall furnish technical sup19 port to any of the various interest categories on

20 the consensus committee.

21 ‘‘(K) DATE OF INITIAL APPOINTMENTS.—

22 The initial appointments of all of the members

23 of the consensus committee shall be completed

24 not later than 90 days after the date on which

25 an administration agreement under paragraph
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1 (2)(A) is completed with the administering or2 ganization.

3 ‘‘(4) REVISIONS OF STANDARDS.—

4 ‘‘(A) IN GENERAL.—Beginning on the date

5 on which all members of the consensus com6 mittee are appointed under paragraph (3), the

7 consensus committee shall, not less than once

8 during each 2-year period—

9 ‘‘(i) consider revisions to the Federal

10 manufactured home construction and safe11 ty standards; and

12 ‘‘(ii) submit proposed revised stand13 ards and regulations, if approved in a vote

14 of the consensus committee by two-thirds

15 of the members, to the Secretary in the

16 form of a proposed rule, including an eco17 nomic analysis.

18 ‘‘(B) PUBLICATION OF PROPOSED REVISED

19 STANDARDS.—

20 ‘‘(i) PUBLICATION BY SECRETARY.—

21 The consensus committee shall provide a

22 proposed revised standard under subpara23 graph (A)(ii) to the Secretary who shall,

24 not later than 30 days after receipt, pub25 lish such proposed revised standard in the
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1 Federal Register for notice and comment

2 in accordance with section 553 of title 5,

3 United States Code. Unless clause (ii) ap4 plies, the Secretary shall provide an oppor5 tunity for public comment on such pro6 posed revised standard in accordance with

7 such section 553 and any such comments

8 shall be submitted directly to the con9 sensus committee without delay.

10 ‘‘(ii) PUBLICATION OF REJECTED

11 PROPOSED REVISED STANDARD.—If the

12 Secretary rejects the proposed revised

13 standard, the Secretary shall publish the

14 rejected proposed revised standard in the

15 Federal Register with the reasons for re16 jection and any recommended modifica17 tions set forth.

18 ‘‘(C) PRESENTATION OF PUBLIC COM19 MENTS; PUBLICATION OF RECOMMENDED REVI20 SIONS.—

21 ‘‘(i) PRESENTATION.—Any public

22 comments, views, and objections to a pro23 posed revised standard published under

24 subparagraph (B) shall be presented by

25 the Secretary to the consensus committee
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1 upon their receipt and in the manner re2 ceived, in accordance with procedures es3 tablished by the American National Stand4 ards Institute.

5 ‘‘(ii) PUBLICATION BY THE SEC6 RETARY.—The consensus committee shall

7 provide to the Secretary any revisions pro8 posed by the consensus committee, which

9 the Secretary shall, not later than 30 cal10 endar days after receipt, cause to be pub11 lished in the Federal Register as a notice

12 of the recommended revisions of the con13 sensus committee to the standard, a notice

14 of the submission of the recommended re15 visions to the Secretary, and a description

16 of the circumstances under which the pro17 posed revised standards could become ef18 fective.

19 ‘‘(iii) PUBLICATION OF REJECTED

20 PROPOSED REVISED STANDARD.—If the

21 Secretary rejects the proposed revised

22 standard, the Secretary shall publish the

23 rejected proposed revised standard in the

24 Federal Register with the reasons for re-
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1 jection and any recommended modifica2 tions set forth.

3 ‘‘(5) REVIEW BY THE SECRETARY.—

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

5 either adopt, modify, or reject a standard, as

6 submitted by the consensus committee under

7 paragraph (4)(A).

8 ‘‘(B) TIMING.—Not later than 12 months

9 after the date on which a standard is submitted

10 to the Secretary by the consensus committee,

11 the Secretary shall take action regarding such

12 standard under subparagraph (C).

13 ‘‘(C) PROCEDURES.—If the Secretary—

14 ‘‘(i) adopts a standard recommended

15 by the consensus committee, the Secretary

16 shall—

17 ‘‘(I) issue a final order without

18 further rulemaking; and

19 ‘‘(II) cause the final order to be

20 published in the Federal Register;

21 ‘‘(ii) determines that any standard

22 should be rejected, the Secretary shall—

23 ‘‘(I) reject the standard; and

24 ‘‘(II) cause to be published in the

25 Federal Register a notice to that ef-
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1 fect, together with the reason or rea2 sons for rejecting the proposed stand3 ard; or

4 ‘‘(iii) determines that a standard rec5 ommended by the consensus committee

6 should be modified, the Secretary shall—

7 ‘‘(I) cause the proposed modified

8 standard to be published in the Fed9 eral Register, together with an expla10 nation of the reason or reasons for the

11 determination of the Secretary; and

12 ‘‘(II) provide an opportunity for

13 public comment in accordance with

14 section 553 of title 5, United States

15 Code.

16 ‘‘(D) FINAL ORDER.—Any final standard

17 under this paragraph shall become effective

18 pursuant to subsection (c).

19 ‘‘(6) FAILURE TO ACT.—If the Secretary fails

20 to take final action under paragraph (5) and to pub21 lish notice of the action in the Federal Register be22 fore the expiration of the 12-month period beginning

23 on the date on which the proposed standard is sub24 mitted to the Secretary under paragraph (4)(A)—
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1 ‘‘(A) the recommendations of the con2 sensus committee—

3 ‘‘(i) shall be considered to have been

4 adopted by the Secretary; and

5 ‘‘(ii) shall take effect upon the expira6 tion of the 180-day period that begins

7 upon the conclusion of such 12-month pe8 riod; and

9 ‘‘(B) not later than 10 days after the expi10 ration of such 12-month period, the Secretary

11 shall cause to be published in the Federal Reg12 ister a notice of the failure of the Secretary to

13 act, the revised standard, and the effective date

14 of the revised standard, which notice shall be

15 deemed to be an order of the Secretary approv16 ing the revised standards proposed by the con17 sensus committee.

18 ‘‘(b) OTHER ORDERS.—

19 ‘‘(1) REGULATIONS.—The Secretary may issue

20 procedural and enforcement regulations and revision

21 to existing regulations as necessary to implement the

22 provisions of this title. The consensus committee

23 may submit to the Secretary proposed procedural

24 and enforcement regulations and recommendations

25 for the revision of such regulations.
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1 ‘‘(2) INTERPRETATIVE BULLETINS.—The Sec2 retary may issue interpretative bulletins to clarify

3 the meaning of any Federal manufactured home

4 construction and safety standard or procedural and

5 enforcement regulation. The consensus committee

6 may submit to the Secretary proposed interpretative

7 bulletins to clarify the meaning of any Federal man8 ufactured home construction and safety standard or

9 procedural and enforcement regulation.

10 ‘‘(3) REVIEW BY CONSENSUS COMMITTEE.—Be11 fore issuing a procedural or enforcement regulation

12 or an interpretative bulletin—

13 ‘‘(A) the Secretary shall—

14 ‘‘(i) submit the proposed procedural

15 or enforcement regulation or interpretative

16 bulletin to the consensus committee; and

17 ‘‘(ii) provide the consensus committee

18 with a period of 120 days to submit writ19 ten comments to the Secretary on the pro20 posed procedural or enforcement regulation

21 or the interpretative bulletin; and

22 ‘‘(B) if the Secretary rejects any signifi23 cant comment provided by the consensus com24 mittee under subparagraph (A), the Secretary

25 shall provide a written explanation of the rea-
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1 sons for the rejection to the consensus com2 mittee; and

3 ‘‘(C) following compliance with subpara4 graphs (A) and (B), the Secretary shall—

5 ‘‘(i) cause the proposed regulation or

6 interpretative bulletin and the consensus

7 committee’s written comments along with

8 the Secretary’s response thereto to be pub9 lished in the Federal Register; and

10 ‘‘(ii) provide an opportunity for public

11 comment in accordance with section 553 of

12 title 5, United States Code.

13 ‘‘(4) REQUIRED ACTION.—The Secretary shall

14 act on any proposed regulation or interpretative bul15 letin submitted by the consensus committee by ap16 proving or rejecting the proposal within 120 days

17 from the date the proposal is received by the Sec18 retary. The Secretary shall either—

19 ‘‘(A) approve the proposal and cause the

20 proposed regulation or interpretative bulletin to

21 be published for public comment in accordance

22 with section 553 of title 5, United States Code;

23 or

24 ‘‘(B) reject the proposed regulation or in25 terpretative bulletin and—
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1 ‘‘(i) provide a written explanation of

2 the reasons for rejection to the consensus

3 committee; and

4 ‘‘(ii) cause the proposed regulation

5 and the written explanation for the rejec6 tion to be published in the Federal Reg7 ister.

8 ‘‘(5) AUTHORITY TO ACT AND EMERGENCY.—If

9 the Secretary determines, in writing, that such ac10 tion is necessary to address an issue on which the

11 Secretary determines that the consensus committee

12 has not made a timely recommendation following a

13 request by the Secretary, or in order to respond to

14 an emergency which jeopardizes the public health or

15 safety, the Secretary may issue an order that is not

16 developed under the procedures set forth in sub17 section (a) or in this subsection, if the Secretary—

18 ‘‘(A) provides to the consensus committee

19 a written description and sets forth the reasons

20 why action is necessary and all supporting doc21 umentation; and

22 ‘‘(B) issues the order after notice and an

23 opportunity for public comment in accordance

24 with section 553 of title 5, United States Code,

25 and publishes the order in the Federal Register.
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1 ‘‘(6) CHANGES.—Any statement of policies,

2 practices, or procedures relating to construction and

3 safety standards, inspections, monitoring, or other

4 enforcement activities which constitutes a statement

5 of general or particular applicability and future off6 set and decisions to implement, interpret, or pre7 scribe law or policy by the Secretary is subject to the

8 provisions of subsection (a) or (b) of this subsection.

9 Any change adopted in violation of the provisions of

10 subsection (a) or (b) of this subsection is void.

11 ‘‘(7) TRANSITION.—Until the date that the con12 sensus committee is appointed pursuant to section

13 604(a)(3), the Secretary may issue proposed orders

14 that are not developed under the procedures set

15 forth in this section for new and revised standards.’’;

16 (2) in subsection (d), by adding at the end the

17 following: ‘‘Federal preemption under this subsection

18 shall be broadly and liberally construed to ensure

19 that disparate State or local requirements or stand20 ards do not affect the uniformity and comprehen21 siveness of the standards promulgated hereunder nor

22 the Federal superintendence of the manufactured

23 housing industry as established by this title. Subject

24 to section 605, there is reserved to each State the

25 right to establish standards for the stabilizing and
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1 support systems of manufactured homes sited within

2 that State, and for the foundations on which manu3 factured homes sited within that State are installed,

4 and the right to enforce compliance with such stand5 ards, except that such standards shall be consistent

6 with the purposes of this title and shall be consistent

7 with the design of the manufacturer.’’;

8 (3) by striking subsection (e);

9 (4) in subsection (f), by striking the subsection

10 designation and all of the matter that precedes para11 graph (1) and inserting the following:

12 ‘‘(e) CONSIDERATIONS IN ESTABLISHING AND IN13 TERPRETING STANDARDS AND REGULATIONS.—The con14 sensus committee, in recommending standards, regula15 tions, and interpretations, and the Secretary, in estab16 lishing standards or regulations, or issuing interpretations

17 under this section, shall—’’;

18 (5) by striking subsection (g);

19 (6) in the first sentence of subsection (j), by

20 striking ‘‘subsection (f)’’ and inserting ‘‘subsection

21 (e)’’; and

22 (7) by redesignating subsections (h), (i), and

23 (j), as subsections (f), (g), and (h), respectively.
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1 SEC. 1105. ABOLISHMENT OF NATIONAL MANUFACTURED

2 HOME ADVISORY COUNCIL; MANUFACTURED

3 HOME INSTALLATION.

4 (a) IN GENERAL.—Section 605 (42 U.S.C. 5404) is

5 amended to read as follows:

6 ‘‘SEC. 605. MANUFACTURED HOME INSTALLATION.

7 ‘‘(a) PROVISION OF INSTALLATION DESIGN AND IN8 STRUCTIONS.—A manufacturer shall provide with each

9 manufactured home, design and instructions for the in10 stallation of the manufactured home that have been ap11 proved by a design approval primary inspection agency.

12 After establishment of model standards under subsection

13 (b)(2), a design approval primary inspection agency may

14 not give such approval unless a design and instruction pro15 vides equal or greater protection than the protection pro16 vided under such model standards.

17 ‘‘(b) MODEL MANUFACTURED HOME INSTALLATION

18 STANDARDS.—

19 ‘‘(1) PROPOSED MODEL STANDARDS.—Not later

20 than 18 months after the date on which the initial

21 appointments of all of the members of the consensus

22 committee are completed, the consensus committee

23 shall develop and submit to the Secretary proposed

24 model manufactured home installation standards,

25 which shall, to the maximum extent possible, taking
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1 into account the factors described in section 604(e),

2 be consistent with—

3 ‘‘(A) the home designs that have been ap4 proved by a design approval primary inspection

5 agency; and

6 ‘‘(B) the designs and instructions for the

7 installation of manufactured homes provided by

8 manufacturers under subsection (a).

9 ‘‘(2) ESTABLISHMENT OF MODEL STAND10 ARDS.—Not later than 12 months after receiving the

11 proposed model standards submitted under para12 graph (1), the Secretary shall develop and establish

13 model manufactured home installation standards,

14 which shall to the maximum extent possible, taking

15 into account the factors described in section 604(e),

16 be consistent with—

17 ‘‘(A) the home designs that have been ap18 proved by a design approval primary inspection

19 agency; and

20 ‘‘(B) the designs and instructions for the

21 installation of manufactured homes provided by

22 manufacturers under subsection (a).

23 ‘‘(3) FACTORS FOR CONSIDERATION.—

24 ‘‘(A) CONSENSUS COMMITTEE.—In devel25 oping the proposed model standards under
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1 paragraph (1), the consensus committee shall

2 consider the factors described in section 604(e).

3 ‘‘(B) SECRETARY.—In developing and es4 tablishing the model standards under paragraph

5 (2), the Secretary shall consider the factors de6 scribed in section 604(e).

7 ‘‘(4) ISSUANCE.—The model manufactured

8 home installation standards shall be issued after no9 tice and an opportunity for public comment in ac10 cordance with section 553 of title 5, United States

11 Code.

12 ‘‘(c) MANUFACTURED HOME INSTALLATION PRO13 GRAMS.—

14 ‘‘(1) PROTECTION OF MANUFACTURED HOUS15 ING RESIDENTS DURING INITIAL PERIOD.—During

16 the 5-year period beginning on the date of the enact17 ment of the Manufactured Housing Improvement

18 Act, no State or manufacturer may establish or im19 plement any installation standards that, in the de20 termination of the Secretary, provide less protection

21 to the residents of manufactured homes than the

22 protection provided by the installation standards in

23 effect with respect to the State or manufacturer, as

24 applicable, on the date of the enactment of the Man25 ufactured Housing Improvement Act.
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1 ‘‘(2) INSTALLATION STANDARDS.—

2 ‘‘(A) ESTABLISHMENT OF INSTALLATION

3 PROGRAM.—Not later than the expiration of the

4 5-year period described in paragraph (1), the

5 Secretary shall establish an installation pro6 gram that meets the requirements of paragraph

7 (3) for the enforcement of installation stand8 ards in each State described in subparagraph

9 (B).

10 ‘‘(B) IMPLEMENTATION OF INSTALLATION

11 PROGRAM.—Beginning on the expiration of the

12 5-year period described in paragraph (1), the

13 Secretary shall implement the installation pro14 gram established under subparagraph (A) in

15 each State that does not have an installation

16 program established by State law that meets

17 the requirements of paragraph (3).

18 ‘‘(C) CONTRACTING OUT OF IMPLEMENTA19 TION.—In carrying out subparagraph (B), the

20 Secretary may contract with an appropriate

21 agent to implement the installation program es22 tablished under that subparagraph.

23 ‘‘(3) REQUIREMENTS.—An installation program

24 meets the requirements of this paragraph if it is a
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1 program regulating the installation of manufactured

2 homes that includes—

3 ‘‘(A) installation standards that, in the de4 termination of the Secretary, provide protection

5 to the residents of manufactured homes that

6 equals or exceeds the protection provided to

7 those residents by—

8 ‘‘(i) the model manufactured home in9 stallation standards established under sub10 section (b); or

11 ‘‘(ii) the designs and instructions pro12 vided by manufacturers under subsection

13 (a), if the Secretary determines that such

14 designs and instructions provide protection

15 to the residents of the manufactured home

16 that equals or exceeds the protection pro17 vided by the model manufactured home in18 stallation standards established under sub19 section (b);

20 ‘‘(B) the training and licensing of manu21 factured home installers; and

22 ‘‘(C) inspection of the installation of manu23 factured homes.’’.

24 (b) CONFORMING AMENDMENTS.—Section 623(c)

25 (42 U.S.C. 5422(c)) is amended—
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1 (1) in paragraph (10), by striking ‘‘and’’ at the

2 end;

3 (2) by redesignating paragraph (11) as para4 graph (13); and

5 (3) by inserting after paragraph (10) the fol6 lowing:

7 ‘‘(11) with respect to any State plan submitted

8 on or after the expiration of the 5-year period begin9 ning on the date of the enactment of the Manufac10 tured Housing Improvement Act, provides for an in11 stallation program established by State law that

12 meets the requirements of section 605(c)(3);’’.

13 SEC. 1106. PUBLIC INFORMATION.

14 Section 607 (42 U.S.C. 5406) is amended—

15 (1) in subsection (a)—

16 (A) by inserting ‘‘to the Secretary’’ after

17 ‘‘submit’’; and

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

19 ‘‘The Secretary shall submit such cost and

20 other information to the consensus committee

21 for evaluation.’’;

22 (2) in subsection (d), by inserting ‘‘, the con23 sensus committee,’’ after ‘‘public’’; and
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1 (3) by striking subsection (c) and redesignating

2 subsections (d) and (e) as subsections (c) and (d),

3 respectively.

4 SEC. 1107. RESEARCH, TESTING, DEVELOPMENT, AND

5 TRAINING.

6 (a) IN GENERAL.—Section 608(a) (42 U.S.C.

7 5407(a)) is amended—

8 (1) in paragraph (2), by striking ‘‘and’’ at the

9 end;

10 (2) in paragraph (3), by striking the period at

11 the end and inserting a semicolon; and

12 (3) by adding at the end the following new

13 paragraphs:

14 ‘‘(4) encouraging the government sponsored

15 housing entities to actively develop and implement

16 secondary market securitization programs for FHA

17 manufactured home loans and those of other loan

18 programs, as appropriate, thereby promoting the

19 availability of affordable manufactured homes to in20 crease homeownership for all people in the United

21 States; and

22 ‘‘(5) reviewing the programs for FHA manufac23 tured home loans and developing any changes to

24 such programs to promote the affordability of manu-
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1 factured homes, including changes in loan terms,

2 amortization periods, regulations, and procedures.’’.

3 (b) DEFINITIONS.—Section 608 (42 U.S.C. 5407) is

4 amended by adding at the end the following new sub5 section:

6 ‘‘(c) DEFINITIONS.—For purposes of this section, the

7 following definitions shall apply:

8 ‘‘(1) GOVERNMENT SPONSORED HOUSING ENTI9 TIES.—The term ‘government sponsored housing en10 tities’ means the Government National Mortgage As11 sociation of the Department of Housing and Urban

12 Development, the Federal National Mortgage Asso13 ciation, and the Federal Home Loan Mortgage Cor14 poration.

15 ‘‘(2) FHA MANUFACTURED HOME LOANS.—The

16 term ‘FHA manufactured home loan’ means a loan

17 that—

18 ‘‘(A) is insured under title I of the Na19 tional Housing Act and is made for the purpose

20 of financing alterations, repairs, or improve21 ments on or in connection with an existing

22 manufactured home, the purchase of a manu23 factured home, the purchase of a manufactured

24 home and a lot on which to place the home, or
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1 the purchase only of a lot on which to place a

2 manufactured home; or

3 ‘‘(B) otherwise insured under the National

4 Housing Act and made for or in connection

5 with a manufactured home.’’.

6 SEC. 1108. PROHIBITED ACTS.

7 Section 610(a) (42 U.S.C. 5409(a)) is amended—

8 (1) in paragraph (5), by striking ‘‘or’’ at the

9 end;

10 (2) in paragraph (6), by striking the period at

11 the end and inserting ‘‘; or’’; and

12 (3) by adding at the end the following new

13 paragraph:

14 ‘‘(7) after the expiration of the period specified

15 in section 605(c)(2)(B), fail to comply with the re16 quirements for the installation program required by

17 section 605 in any State that has not adopted and

18 implemented a State installation program.’’.

19 SEC. 1109. FEES.

20 Section 620 (42 U.S.C. 5419) is amended to read as

21 follows:

22 ‘‘AUTHORITY TO ESTABLISH FEES

23 ‘‘SEC. 620. (a) IN GENERAL.—In carrying out in24 spections under this title, in developing standards and reg25 ulations pursuant to section 604, and in facilitating the

26 acceptance of the affordability and availability of manufac-
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1 tured housing within the Department, the Secretary

2 may—

3 ‘‘(1) establish and collect from manufactured

4 home manufacturers such reasonable fees as may be

5 necessary to offset the expenses incurred by the Sec6 retary in connection with carrying out the respon7 sibilities of the Secretary under this title,

8 including—

9 ‘‘(A) conducting inspections and moni10 toring;

11 ‘‘(B) providing funding to States for the

12 administration and implementation of approved

13 State plans under section 623, including rea14 sonable funding for cooperative educational and

15 training programs designed to facilitate uniform

16 enforcement under this title; these funds may

17 be paid directly to the States or may be paid

18 or provided to any person or entity designated

19 to receive and disburse such funds by coopera20 tive agreements among participating States,

21 provided that such person or entity is not other22 wise an agent of the Secretary under this title;
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1 ‘‘(C) providing the funding for a noncareer

2 administrator and Federal staff personnel for

3 the manufactured housing program;

4 ‘‘(D) administering the consensus com5 mittee as set forth in section 604;

6 ‘‘(E) facilitating the acceptance of the

7 quality, durability, safety, and affordability of

8 manufactured housing within the Department;

9 and

10 ‘‘(F) implementing sections 605 and 623;

11 and

12 ‘‘(2) use any fees collected under paragraph (1)

13 to pay expenses referred to in paragraph (1), which

14 shall be exempt and separate from any limitations

15 on the Department of Housing and Urban Develop16 ment regarding full-time equivalent positions and

17 travel.

18 ‘‘(b) CONTRACTORS.—When using fees under this

19 section, the Secretary shall ensure that no fewer than

20 three separate contracts and three separate and inde21 pendent contractors are retained to carry out monitoring

22 and inspection work and any other work that may be dele23 gated to a contractor under this title; except that the re24 quired minimum number of separate contracts and sepa-
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1 rate and independent contractors shall increase to four si2 multaneous with the latter of—

3 ‘‘(1) the issuance by the Secretary of a request

4 for proposals for the implementation of installation

5 programs; and

6 ‘‘(2) the issuance by the Secretary of a request

7 for proposals for the implementation of dispute reso8 lution program,

9 as provided in this title. The Secretary shall also ensure

10 that no conflict of interest arises from the award of any

11 such contracts.

12 ‘‘(c) PROHIBITED USE.—Fees collected under sub13 section (a) shall not be used for any purpose or activity

14 not specifically authorized by this title unless such activity

15 was already engaged in by the Secretary prior to the date

16 of the enactment of this title.

17 ‘‘(d) MODIFICATION.—Any fee established by the

18 Secretary under this section shall only be modified pursu19 ant to rulemaking in accordance with section 553 of title

20 5, United States Code.
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1 ‘‘(e) APPROPRIATION AND DEPOSIT OF FEES.—

2 ‘‘(1) IN GENERAL.—There is established in the

3 Treasury of the United States a fund to be known

4 as the ‘Manufactured Housing Fees Trust Fund’ for

5 deposit of all fees collected pursuant to subsection

6 (a). These fees shall be held in trust for use only as

7 provided in this title.

8 ‘‘(2) APPROPRIATION.—Such fees shall be avail9 able for expenditure only to the extent approved in

10 an annual appropriation Act.

11 ‘‘(3) PAYMENTS TO STATES.—On and after the

12 effective date of the Manufactured Housing Im13 provement Act, the Secretary shall continue to fund

14 the States having approved State plans in amounts

15 which are not less than the allocated amounts based

16 on the fee distribution system in effect on the day

17 before the effective date of such Act.’’.

18 SEC. 1110. DISPUTE RESOLUTION.

19 Section 623(c) (42 U.S.C. 5422(c)), as amended by

20 section 1105(b) of this Act, is amended by inserting after

21 paragraph (11) (as added by section 1105(b) of this Act)

22 the following:

23 ‘‘(12) with respect to any State plan submitted

24 on or after the expiration of the 5-year period begin25 ning on the date of the enactment of the Manufac-
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1 tured Housing Improvement Act, provides for a dis2 pute resolution program for the timely resolution of

3 disputes between manufacturers, retailers, and in4 stallers of manufactured homes regarding responsi5 bility, and for the issuance of appropriate orders, for

6 the correction or repair of defects in manufactured

7 homes that are reported during the 1-year period be8 ginning on the date of installation; and’’; and by

9 adding at the end the following:

10 ‘‘(g) ENFORCEMENT OF DISPUTE RESOLUTION

11 STANDARDS.—

12 ‘‘(1) ESTABLISHMENT OF DISPUTE RESOLU13 TION PROGRAM.—Not later than the expiration of

14 the 5-year period beginning on the date of the enact15 ment of the Manufactured Housing Improvement

16 Act, the Secretary shall establish a dispute resolu17 tion program that meets the requirements of sub18 section (c)(12) for dispute resolution in each State

19 described in paragraph (2). The order establishing

20 the dispute resolution program shall be issued after

21 notice and an opportunity for public comment in ac22 cordance with section 553 of title 5, United States

23 Code.

24 ‘‘(2) IMPLEMENTATION OF DISPUTE RESOLU25 TION PROGRAM.—Beginning on the expiration of the
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1 5-year period described in paragraph (1), the Sec2 retary shall implement the dispute resolution pro3 gram established under paragraph (1) in each State

4 that has not established a dispute resolution pro5 gram that meets the requirements of subsection

6 (c)(12).

7 ‘‘(3) CONTRACTING OUT OF IMPLEMENTA8 TION.—In carrying out paragraph (2), the Secretary

9 may contract with an appropriate agent to imple10 ment the dispute resolution program established

11 under that paragraph.

12 SEC. 1111. ELIMINATION OF ANNUAL REPORT REQUIRE13 MENT.

14 The Act is amended—

15 (1) by striking section 626 (42 U.S.C. 5425);

16 and

17 (2) by redesignating sections 627 and 628 (42

18 U.S.C. 5426, 5401 note) as sections 626 and 627,

19 respectively.

20 SEC. 1112. EFFECTIVE DATE.

21 The amendments made by this title shall take effect

22 on the date of the enactment of this Act, except that the

23 amendments shall have no effect on any order or interpre24 tative bulletin that is published as a proposed rule pursu-
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1 ant to section 553 of title 5, United States Code, on or

2 before such date.

3 SEC. 1113. SAVINGS PROVISION.

4 (a) STANDARDS AND REGULATIONS.—The Federal

5 manufactured home construction and safety standards (as

6 such term is defined in section 603 of the National Manu7 factured Housing Construction and Safety Standards Act

8 of 1974) and all regulations pertaining thereto in effect

9 immediately before the date of the enactment of this Act

10 shall apply until the effective date of a standard or regula11 tion modifying or superseding the existing standard or

12 regulation which is promulgated under subsection (a) or

13 (b) of section 604 of the National Manufactured Housing

14 Construction and Safety Standards Act of 1974, as

15 amended by this title.

16 (b) CONTRACTS.—Any contract awarded after April

17 6, 2000, pursuant to a Request for Proposal issued before

18 the date of the enactment of this Act shall remain in effect

19 for a period of 2 years from the date of the enactment

20 of this Act or for the remainder of the contract term,

21 whichever period is shorter.
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1 TITLE XII—PUBLIC AND AS2 SISTED HOUSING DRUG

3 ELIMINATION PROGRAM

4 SEC. 1201. ELIGIBLE PUBLIC HOUSING AGENCIES.

5 Section 5125 of the Anti-Drug Abuse Act of 1988

6 (42 U.S.C. 11904) is amended—

7 (1) in subsection (b)—

8 (A) in paragraph (2)(B), by inserting ‘‘or

9 (4)’’ before the period at the end;

10 (B) by redesignating paragraph (4) as

11 paragraph (5); and

12 (C) by inserting after paragraph (3) the

13 following new paragraph:

14 ‘‘(4) EFFECTIVE PHA’S.—The class established

15 under this paragraph is the class of public housing

16 agencies that demonstrate, to the satisfaction of the

17 Secretary, that—

18 ‘‘(A) the agency received grants under this

19 chapter to carry out eligible activities under this

20 chapter, as in effect immediately before the ef21 fective date under section 503(a) of the Quality

22 Housing and Work Responsibility Act of 1998;

23 ‘‘(B) the agency, in cooperation with local

24 law enforcement agencies, has largely elimi25 nated drug and crime problems in the public
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1 housing project or projects for which the assist2 ance will be used;

3 ‘‘(C) the agency needs to maintain or ex4 pand police services in and around such public

5 housing to sustain the low incidence of crime

6 and drug problems in and around such public

7 housing; and

8 ‘‘(D) the agency needs, and will use, assist9 ance under this chapter to maintain or expand

10 such police services,

11 except that such agencies shall be eligible under this

12 paragraph only during the 5-year period beginning

13 upon initial eligibility under this paragraph.’’; and

14 (2) in subsection (c)(1), by inserting before the

15 semicolon the following: ‘‘except that this paragraph

16 shall not apply in the case of agencies eligible for as17 sistance under this chapter pursuant to subsection

18 (b)(4)’’.

Passed the House of Representatives April 6, 2000.

Attest: JEFF TRANDAHL,

Clerk.