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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1776 Reported in House (RH)]

                                                 Union Calendar No. 300

106th CONGRESS

  2d Session

                               H. R. 1776

                          [Report No. 106-553]

_______________________________________________________________________

                                 A BILL

             To expand homeownership in the United States.

_______________________________________________________________________

                             March 29, 2000

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
                                                 Union Calendar No. 300
106th CONGRESS
  2d Session
                                H. R. 1776

                          [Report No. 106-553]

             To expand homeownership in the United States.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 1999

 Mr. Lazio (for himself and Mr. Leach) introduced the following bill; 
 which was referred to the Committee on Banking and Financial Services

                             March 29, 2000

 Additional sponsors: Mr. Weygand, Mrs. Kelly, Mr. Hall of Texas, Mr. 
  Ramstad, Mr. McIntosh, Mr. Pickering, Mr. Gilman, Mr. Weller, Mrs. 
  Morella, Mr. Bachus, Mrs. Roukema, Mr. Ballenger, Mr. Boehlert, Mr. 
  Schaffer, Mr. Metcalf, Mr. Green of Texas, Mr. Doyle, Mr. Cook, Mr. 
Gonzalez, Mr. Doolittle, Mr. Jones of North Carolina, Mr. Aderholt, Ms. 
Pryce of Ohio, Mr. Sandlin, Mr. Ney, Mr. English, Ms. Hooley of Oregon, 
  Mr. Edwards, Mrs. Myrick, Mr. Baldacci, Mr. Goode, Mr. Bishop, Ms. 
   Danner, Mr. Young of Alaska, Mr. Rahall, Mr. Hill of Montana, Mr. 
Upton, Ms. Dunn, Mr. Baker, Mr. Moore, Mr. Minge, Mr. Castle, Ms. Brown 
of Florida, Mr. Campbell, Mr. Reyes, Mr. Peterson of Pennsylvania, Mr. 
   Diaz-Balart, Mr. Bartlett of Maryland, Mrs. Northup, Mr. Green of 
  Wisconsin, Mr. Horn, Mr. Lucas of Oklahoma, Mr. Frelinghuysen, Mrs. 
  Clayton, Mr. Cunningham, Mr. Taylor of Mississippi, Mr. McHugh, Mr. 
   Fletcher, Mr. Shows, Mr. Wicker, Mr. Bereuter, Mr. Gary Miller of 
   California, Mr. Frost, Mr. Shimkus, Mr. Boucher, Mr. Isakson, Mr. 
  Stenholm, Mr. LoBiondo, Mr. Hoyer, Mr. Maloney of Connecticut, Mr. 
 Riley, Mr. Sweeney, Mr. Greenwood, Mrs. Meek of Florida, Mr. Barcia, 
 Mr. Lucas of Kentucky, Mr. Lampson, Mr. Mascara, Mr. Barr of Georgia, 
 Mr. Pickett, Mr. LaTourette, Mr. Pitts, Mr. Simpson, Mr. DeFazio, Mr. 
Hayworth, Mr. Holden, Mr. Houghton, Mr. Wamp, Mr. Herger, Mr. Reynolds, 
 Mr. Pastor, Mr. Hayes, Mr. Davis of Illinois, Mr. Ryan of Wisconsin, 
Mr. Petri, Mrs. Johnson of Connecticut, Mr. Kuykendall, Mr. Etheridge, 
 Mr. Phelps, Mr. Goodlatte, Mr. Smith of Washington, Mr. Calvert, Mrs. 
  Bono, Mr. Mica, Mr. Boswell, Mr. Terry, Mr. Skeen, Mr. Bilbray, Mr. 
  Portman, Mr. Franks of New Jersey, Mr. Thornberry, Ms. Berkley, Mr. 
     Stearns, Mr. Davis of Florida, Mrs. McCarthy of New York, Mr. 
Kanjorski, Mr. Gordon, Ms. Schakowsky, Mr. Hoeffel, Mr. Blumenauer, Mr. 
Norwood, Mr. Jenkins, Mr. Wu, Mr. Bass, Ms. Lee, Mr. Shays, Mr. Weldon 
  of Pennsylvania, Mr. Bonilla, Mrs. Fowler, Mr. Crowley, Mr. Hill of 
Indiana, Mr. Quinn, Mr. McKeon, Mrs. Emerson, Mr. Borski, Mr. John, Mr. 
Larson, Mr. Kind, Mr. Forbes, Mr. Combest, Mr. Thompson of California, 
 Mr. Ryun of Kansas, Ms. Granger, Mr. McCollum, Mr. Burton of Indiana, 
 Mr. Latham, Mr. Goodling, Mr. Gutknecht, Mr. Hutchinson, Mr. Roemer, 
 Mr. Bentsen, Mr. Sherman, Mr. Boehner, and Mr. Price of North Carolina

                             March 29, 2000

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on May 12, 
                                 1999]

_______________________________________________________________________

                                 A BILL

 
             To expand homeownership in the United States.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American 
Homeownership and Economic Opportunity Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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. Neighborhood teacher program.
Sec. 206. Community development financial institution 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.

               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.

             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.
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.

            TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP

Sec. 701. Lands Title Report Commission.
Sec. 702. Loan guarantees.
Sec. 703. Native American housing assistance.

   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.
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. Fees.
Sec. 1109. Dispute resolution.
Sec. 1110. Elimination of annual report requirement.
Sec. 1111. Effective date.
Sec. 1112. Savings provision.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) the priorities of our Nation should include expanding 
        homeownership opportunities by providing access to affordable 
        housing that is safe, clean, and healthy;
            (2) our Nation has an abundance of conventional capital 
        sources available for homeownership financing;
            (3) experience with local homeownership programs has shown 
        that if flexible capital sources are available, communities 
        possess ample will and creativity to provide opportunities 
        uniquely designed to assist their citizens in realizing the 
        American dream of homeownership; and
            (4) each consumer should be afforded every reasonable 
        opportunity to access mortgage credit, to obtain the lowest 
        cost mortgages for which the consumer can qualify, to know the 
        true cost of the mortgage, to be free of regulatory burdens, 
        and to know what factors underlie a lender's decision regarding 
        the consumer's mortgage.
    (b) Purpose.--It is the purpose of this Act--
            (1) to encourage and facilitate homeownership by families 
        in the United States who are not otherwise able to afford 
        homeownership; and
            (2) to expand homeownership through policies that--
                    (A) promote the ability of the private sector to 
                produce affordable housing without excessive government 
                regulation;
                    (B) encourage tax incentives, such as the mortgage 
                interest deduction, at all levels of government; and
                    (C) facilitate the availability of flexible capital 
                for homeownership opportunities and provide local 
                governments with increased flexibility under existing 
                Federal programs to facilitate homeownership.

         TITLE I--REMOVAL OF BARRIERS TO HOUSING AFFORDABILITY

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Housing Affordability Barrier 
Removal Act of 2000''.

SEC. 102. HOUSING IMPACT ANALYSIS.

    (a) Applicability.--Except as provided in subsection (b), the 
requirements of this section shall apply with respect to--
            (1) any proposed rule, unless the agency promulgating the 
        rule--
                    (A) has certified that the proposed rule will not, 
                if given force or effect as a final rule, have a 
                significant deleterious impact on housing 
                affordability; and
                    (B) has caused such certification to be published 
                in the Federal Register at the time of publication of 
                general notice of proposed rulemaking for the rule, 
                together with a statement providing the factual basis 
                for the certification; and
            (2) any final rule, unless the agency promulgating the 
        rule--
                    (A) has certified that the rule will not, if given 
                force or effect, have a significant deleterious impact 
                on housing affordability; and
                    (B) has caused such certification to be published 
                in the Federal Register at the time of publication of 
                the final rule, together with a statement providing the 
                factual basis for the certification.
Any agency making a certification under this subsection shall provide a 
copy of such certification and the statement providing the factual 
basis for the certification to the Secretary of Housing and Urban 
Development.
    (b) Exception for Certain Banking Rules.--The requirements of this 
section shall not apply to any proposed or final rule relating to--
            (1) the operations, safety, or soundness of--
                    (A) federally insured depository institutions or 
                any affiliate of such an institution (as such term is 
                defined in section 2(k) of the Bank Holding Company Act 
                of 1956 (12 U.S.C. 1841(k));
                    (B) credit unions;
                    (C) the Federal home loan banks;
                    (D) the enterprises (as such term is defined in 
                section 1303 of the Housing and Community Development 
                Act of 1992 (12 U.S.C. 4502);
                    (E) a Farm Credit System institution; or
                    (F) foreign banks or their branches, agencies, 
                commercial lending companies, or representative offices 
                that operate in the United States, or any affiliate of 
                a foreign bank (as such terms are defined in section 1 
                of the International Banking Act of 1978 (12 U.S.C. 
                3101); or
            (2) the payments system or the protection of deposit 
        insurance funds or the Farm Credit Insurance Fund.
    (c) Statement of Proposed Rulemaking.--Whenever an agency publishes 
general notice of proposed rulemaking for any proposed rule, unless the 
agency has made a certification under subsection (a), the agency 
shall--
            (1) in the notice of proposed rulemaking--
                    (A) state with particularity the text of the 
                proposed rule; and
                    (B) request any interested persons to submit to the 
                agency any written analyses, data, views, and 
                arguments, and any specific alternatives to the 
                proposed rule that--
                            (i) accomplish the stated objectives of the 
                        applicable statutes, in a manner comparable to 
                        the proposed rule;
                            (ii) result in costs to the Federal 
                        Government equal to or less than the costs 
                        resulting from the proposed rule; and
                            (iii) result in housing affordability 
                        greater than the housing affordability 
                        resulting from the proposed rule;
            (2) provide an opportunity for interested persons to take 
        the actions specified under paragraph (1)(B) before 
        promulgation of the final rule; and
            (3) prepare and make available for public comment an 
        initial housing impact analysis in accordance with the 
        requirements of subsection (d).
    (d) Initial Housing Impact Analysis.--
            (1) Requirements.--Each initial housing impact analysis 
        shall describe the impact of the proposed rule on housing 
        affordability. The initial housing impact analysis or a summary 
        shall be published in the Federal Register at the same time as, 
        and together with, the publication of general notice of 
        proposed rulemaking for the rule. The agency shall transmit a 
        copy of the initial housing impact analysis to the Secretary of 
        Housing and Urban Development.
            (2) Monthly hud listing.--On a monthly basis, the Secretary 
        of Housing and Urban Development shall cause to be published in 
        the Federal Register, and shall make available through a World 
        Wide Web site of the Department, a listing of all proposed 
        rules for which an initial housing impact analysis was prepared 
        during the preceding month.
            (3) Contents.--Each initial housing impact analysis 
        required under this subsection shall contain--
                    (A) a description of the reasons why action by the 
                agency is being considered;
                    (B) a succinct statement of the objectives of, and 
                legal basis for, the proposed rule;
                    (C) a description of and, where feasible, an 
                estimate of the extent to which the proposed rule would 
                increase the cost or reduce the supply of housing or 
                land for residential development; and
                    (D) an identification, to the extent practicable, 
                of all relevant Federal rules which may duplicate, 
                overlap, or conflict with the proposed rule.
    (e) Proposal of Less Deleterious Alternative Rule.--
            (1) Analysis.--The agency publishing a general notice of 
        proposed rulemaking shall review any specific analyses and 
        alternatives to the proposed rule which have been submitted to 
        the agency pursuant to subsection (c)(2) to determine whether 
        any alternative to the proposed rule--
                    (A) accomplishes the stated objectives of the 
                applicable statutes, in a manner comparable to the 
                proposed rule;
                    (B) results in costs to the Federal Government 
                equal to or less than the costs resulting from the 
                proposed rule; and
                    (C) results in housing affordability greater than 
                the housing affordability resulting from the proposed 
                rule.
            (2) New notice of proposed rulemaking.--If the agency 
        determines that an alternative to the proposed rule meets the 
        requirements under subparagraphs (A) through (C) of paragraph 
        (1), unless the agency provides an explanation on the record 
        for the proposed rule as to why the alternative should not be 
        implemented, the agency shall incorporate the alternative into 
        the final rule or, at the agency's discretion, issue a new 
        proposed rule which incorporates the alternative.
    (f) Final Housing Impact Analysis.--
            (1) Requirement.--Whenever an agency promulgates a final 
        rule after publication of a general notice of proposed 
        rulemaking, unless the agency has made the certification under 
        subsection (a), the agency shall prepare a final housing impact 
        analysis.
            (2) Contents.--Each final housing impact analysis shall 
        contain--
                    (A) a succinct statement of the need for, and 
                objectives of, the rule;
                    (B) a summary of the significant issues raised 
                during the public comment period in response to the 
                initial housing impact analysis, a summary of the 
                assessment of the agency of such issues, and a 
                statement of any changes made in the proposed rule as a 
                result of such comments; and
                    (C) a description of and an estimate of the extent 
                to which the rule will impact housing affordability or 
                an explanation of why no such estimate is available.
            (3) Availability.--The agency shall make copies of the 
        final housing impact analysis available to members of the 
        public and shall publish in the Federal Register such analysis 
        or a summary thereof.
    (g) Avoidance of Duplicative or Unnecessary Analyses.--
            (1) Duplication.--Any Federal agency may perform the 
        analyses required by subsections (d) and (f) in conjunction 
        with or as a part of any other agenda or analysis required by 
        any other law, executive order, directive, or rule if such 
        other analysis satisfies the provisions of such subsections.
            (2) Joinder.--In order to avoid duplicative action, an 
        agency may consider a series of closely related rules as one 
        rule for the purposes of subsections (d) and (f).
    (h) Preparation of Analyses.--In complying with the provisions of 
subsections (d) and (f), an agency may provide either a quantifiable or 
numerical description of the effects of a proposed rule or alternatives 
to the proposed rule, or more general descriptive statements if 
quantification is not practicable or reliable.
    (i) Effect on Other Law.--The requirements of subsections (d) and 
(f) do not alter in any manner standards otherwise applicable by law to 
agency action.
    (j) Procedure for Waiver or Delay of Completion.--
            (1) Initial housing impact analysis.--An agency head may 
        waive or delay the completion of some or all of the 
        requirements of subsection (d) by publishing in the Federal 
        Register, not later than the date of publication of the final 
        rule, a written finding, with reasons therefor, that the final 
        rule is being promulgated in response to an emergency that 
        makes compliance or timely compliance with the provisions of 
        subsection (a) impracticable.
            (2) Final housing impact analysis.--An agency head may not 
        waive the requirements of subsection (f). An agency head may 
        delay the completion of the requirements of subsection (f) for 
        a period of not more than 180 days after the date of 
        publication in the Federal Register of a final rule by 
        publishing in the Federal Register, not later than such date of 
        publication, a written finding, with reasons therefor, that the 
        final rule is being promulgated in response to an emergency 
        that makes timely compliance with the provisions of subsection 
        (f) impracticable. If the agency has not prepared a final 
        housing impact analysis pursuant to subsection (f) within 180 
        days from the date of publication of the final rule, such rule 
        shall lapse and have no force or effect. Such rule shall not be 
        repromulgated until a final housing impact analysis has been 
        completed by the agency.
    (k) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Housing affordability.--The term ``housing 
        affordability'' means the quantity of housing that is 
        affordable to families having incomes that do not exceed 150 
        percent of the median income of families in the area in which 
        the housing is located, with adjustments for smaller and larger 
        families. For purposes of this paragraph, area, median family 
        income for an area, and adjustments for family size shall be 
        determined in the same manner as such factors are determined 
        for purposes of section 3(b)(2) of the United States Housing 
        Act of 1937.
            (2) Agency.--The term ``agency'' means each authority of 
        the Government of the United States, whether or not it is 
        within or subject to review by another agency, but does not 
        include--
                    (A) the Congress;
                    (B) the courts of the United States;
                    (C) the governments of the territories or 
                possessions of the United States;
                    (D) the government of the District of Columbia;
                    (E) agencies composed of representatives of the 
                parties or of representatives of organizations of the 
                parties to the disputes determined by them;
                    (F) courts-martial and military commissions;
                    (G) military authority exercised in the field in 
                time of war or in occupied territory; or
                    (H) functions conferred by--
                            (i) sections 1738, 1739, 1743, and 1744 of 
                        title 12, United States Code;
                            (ii) chapter 2 of title 41, United States 
                        Code;
                            (iii) subchapter II of chapter 471 of title 
                        49, United States Code; or
                            (iv) sections 1884, 1891-1902, and former 
                        section 1641(b)(2), of title 50, appendix, 
                        United States Code.
            (3) Families.--The term ``families'' has the meaning given 
        such term in section 3 of the United States Housing Act of 
        1937.
            (4) Rule.--The term ``rule'' means any rule for which the 
        agency publishes a general notice of proposed rulemaking 
        pursuant to section 553(b) of title 5, United States Code, or 
        any other law, including any rule of general applicability 
        governing grants by an agency to State and local governments 
        for which the agency provides an opportunity for notice and 
        public comment; except that such term does not include a rule 
        of particular applicability relating to rates, wages, corporate 
        or financial structures or reorganizations thereof, prices, 
        facilities, appliances, services, or allowances therefor or to 
        valuations, costs or accounting, or practices relating to such 
        rates, wages, structures, prices, appliances, services, or 
        allowances.
            (5) Significant.--The term ``significant'' means increasing 
        consumers' cost of housing by more than $100,000,000 per year.
    (l) Development.--Not later than 1 year after the date of the 
enactment of this title, the Secretary of Housing and Urban Development 
shall develop model initial and final housing impact analyses under 
this section and shall cause such model analyses to be published in the 
Federal Register. The model analyses shall define the primary elements 
of a housing impact analysis to instruct other agencies on how to carry 
out and develop the analyses required under subsections (a) and (d).
    (m) Judicial Review.--
            (1) Determination by agency.--Except as otherwise provided 
        in paragraph (2), any determination by an agency concerning the 
        applicability of any of the provisions of this title to any 
        action of the agency shall not be subject to judicial review.
            (2) Other actions by agency.--Any housing impact analysis 
        prepared under subsection (d) or (f) and the compliance or 
        noncompliance of the agency with the provisions of this title 
        shall not be subject to judicial review. When an action for 
        judicial review of a rule is instituted, any housing impact 
        analysis for such rule shall constitute part of the whole 
        record of agency action in connection with the review.
            (3) Exception.--Nothing in this subsection bars judicial 
        review of any other impact statement or similar analysis 
        required by any other law if judicial review of such statement 
        or analysis is otherwise provided by law.

SEC. 103. GRANTS FOR REGULATORY BARRIER REMOVAL STRATEGIES.

    (a) Authorization of Appropriations.--Subsection (a) of section 
1204 of the Housing and Community Development Act of 1992 (42 U.S.C. 
12705c(a)) is amended to read as follows:
    ``(a) Funding.--There is authorized to be appropriated for grants 
under subsections (b) and (c) $15,000,000 for fiscal year 2001 and such 
sums as may be necessary for each of fiscal years 2002, 2003, 2004, and 
2005.''.
    (b) Consolidation of State and Local Grants.--Subsection (b) of 
section 1204 of the Housing and Community Development Act of 1992 (42 
U.S.C. 12705c(b)) is amended--
            (1) in the subsection heading, by striking ``State Grants'' 
        and inserting ``Grant Authority'';
            (2) in the matter preceding paragraph (1), by inserting 
        after ``States'' the following: ``and units of general local 
        government (including consortia of such governments)'';
            (3) in paragraph (3), by striking ``a State program to 
        reduce State and local'' and inserting ``State, local, or 
        regional programs to reduce'';
            (4) in paragraph (4), by inserting ``or local'' after 
        ``State''; and
            (5) in paragraph (5), by striking ``State''.
    (c) Repeal of Local Grants Provision.--Section 1204 of the Housing 
and Community Development Act of 1992 (42 U.S.C. 12705c) is amended by 
striking subsection (c).
    (d) Application and Selection.--The last sentence of section 
1204(e) of the Housing and Community Development Act of 1992 (42 U.S.C. 
12705c(e)) is amended--
            (1) by striking ``and for the selection of units of general 
        local government to receive grants under subsection (f)(2)''; 
        and
            (2) by inserting before the period at the end the 
        following: ``and such criteria shall require that grant amounts 
        be used in a manner consistent with the strategy contained in 
        the comprehensive housing affordability strategy for the 
        jurisdiction pursuant to section 105(b)(4) of the Cranston-
        Gonzalez National Affordable Housing Act''.
    (e) Selection of Grantees.--Subsection (f) of section 1204 of the 
Housing and Community Development Act of 1992 (42 U.S.C. 12705c(f)) is 
amended to read as follows:
    ``(f) Selection of Grantees.--To the extent amounts are made 
available to carry out this section, the Secretary shall provide grants 
on a competitive basis to eligible grantees based on the proposed uses 
of such amounts, as provided in applications under subsection (e).''.
    (f) Technical Amendments.--Section 107(a)(1) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307(a)(1)) is amended--
            (1) in subparagraph (G), by inserting ``and'' after the 
        semicolon at the end;
            (2) by striking subparagraph (H); and
            (3) by redesignating subparagraph (I) as subparagraph (H).

SEC. 104. ELIGIBILITY FOR COMMUNITY DEVELOPMENT BLOCK GRANTS.

    (a) In General.--Section 104(c)(1) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5304(c)(1)) is amended by inserting 
before the comma the following: ``, which shall include making a good 
faith effort to carry out the strategy established under section 
105(b)(4) of such Act by the unit of general local government to remove 
barriers to affordable housing''.
    (b) Rule of Construction.--The amendment made by subsection (a) may 
not be construed to create any new private right of action.

SEC. 105. REGULATORY BARRIERS CLEARINGHOUSE.

    Section 1205 of the Housing and Community Development Act of 1992 
(42 U.S.C. 12705d) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``receive, collect, process, and assemble'' 
                and inserting ``serve as a national repository to 
                receive, collect, process, assemble, and disseminate'';
                    (B) in paragraph (1)--
                            (i) by striking ``, including'' and 
                        inserting ``(including''; and
                            (ii) by inserting before the semicolon at 
                        the end the following: ``), and the prevalence 
                        and effects on affordable housing of such laws, 
                        regulations, and policies'';
                    (C) in paragraph (2), by inserting before the 
                semicolon the following: ``, including particularly 
                innovative or successful activities, strategies, and 
                plans''; and
                    (D) in paragraph (3), by inserting before the 
                period at the end the following: ``, including 
                particularly innovative or successful strategies, 
                activities, and plans'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) by making available through a World Wide Web site of 
        the Department, by electronic mail, or otherwise, provide to 
        each housing agency of a unit of general local government that 
        serves an area having a population greater than 100,000, an 
        index of all State and local strategies and plans submitted 
        under subsection (a) to the clearinghouse, which--
                    ``(A) shall describe the types of barriers to 
                affordable housing that the strategy or plan was 
                designed to ameliorate or remove; and
                    ``(B) shall, not later than 30 days after 
                submission to the clearinghouse of any new strategy or 
                plan, be updated to include the new strategy or plan 
                submitted.''; and
            (3) by adding at the end the following new subsections:
    ``(c) Organization.--The clearinghouse under this section shall be 
established within the Office of Policy Development of the Department 
of Housing and Urban Development and shall be under the direction of 
the Assistant Secretary for Policy Development and Research.
    ``(d) Timing.--The clearinghouse under this section (as amended by 
section 105 of the Housing Affordability Barrier Removal Act of 2000) 
shall be established and commence carrying out the functions of the 
clearinghouse under this section not later than 1 year after the date 
of the enactment of such Act. The Secretary of Housing and Urban 
Development may comply with the requirements under this section by 
reestablishing the clearinghouse that was originally established to 
comply with this section and updating and improving such clearinghouse 
to the extent necessary to comply with the requirements of this section 
as in effect pursuant to the enactment of such Act.''.

 TITLE II--HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES

SEC. 201. EXTENSION OF LOAN TERM FOR MANUFACTURED HOME LOTS.

    Section 2(b)(3)(E) of the National Housing Act (12 U.S.C. 
1703(b)(3)(E)) is amended by striking ``fifteen'' and inserting 
``twenty''.

SEC. 202. DOWNPAYMENT SIMPLIFICATION.

    (a) In General.--Section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), by realigning the matter 
                that precedes clause (ii) an additional 2 ems from the 
                left margin;
                    (B) in the matter that follows subparagraph 
                (B)(iii)--
                            (i) by striking the 6th sentence (relating 
                        to the increases for costs of solar energy 
                        systems) and all that follows through the end 
                        of the penultimate undesignated paragraph; and
                            (ii) by striking the 2d and 3rd sentences 
                        of such matter; and
                    (C) by striking subparagraph (B);
            (2) by transferring and inserting subparagraph (A) of 
        paragraph (10) after subparagraph (A) of paragraph (2) and 
        amending such subparagraph by striking all of the matter that 
        precedes clause (i) and inserting the following:
                    ``(B) not to exceed an amount equal to the sum of--
                '';
            (3) by transferring and inserting the last undesignated 
        paragraph of paragraph (2) (relating to disclosure notice) 
        after subsection (e), realigning such transferred paragraph so 
        as to be flush with the left margin, and amending such 
        transferred paragraph by inserting ``(f) Disclosure of Other 
        Mortgage Products.--'' before ``In conjunction'';
            (4) by transferring and inserting the sentence that 
        constitutes the text of paragraph (10)(B) after the period at 
        the end of the first sentence that follows subparagraph (B) 
        (relating to the definition of ``area''); and
            (5) by striking paragraph (10) (as amended by the preceding 
        provisions this section).
    (b) Conforming Amendments.--Section 245 of the National Housing Act 
(12 U.S.C. 1715z-10) is amended--
            (1) in subsection (a), by striking ``, or if the 
        mortgagor'' and all that follows through ``case of veterans''; 
        and
            (2) in subsection (b)(3), by striking ``, or, if the'' and 
        all that follows through ``for veterans,''.

SEC. 203. REDUCED DOWNPAYMENT REQUIREMENTS FOR LOANS FOR TEACHERS AND 
              UNIFORMED MUNICIPAL EMPLOYEES.

    (a) In General.--Section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)), as amended by section 202 of this Act, is further 
amended by adding at the end the following new paragraph:
            ``(10) Reduced downpayment requirements for teachers and 
        uniformed municipal employees.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                in the case of a mortgage described in subparagraph 
                (B)--
                            ``(i) the mortgage shall involve a 
                        principal obligation in an amount that does not 
                        exceed the sum of 99 percent of the appraised 
                        value of the property and the total amount of 
                        initial service charges, appraisal, inspection, 
                        and other fees (as the Secretary shall approve) 
                        paid in connection with the mortgage;
                            ``(ii) no other provision of this 
                        subsection limiting the principal obligation of 
                        the mortgage based upon a percentage of the 
                        appraised value of the property subject to the 
                        mortgage shall apply; and
                            ``(iii) the matter in paragraph (9) that 
                        precedes the first proviso shall not apply and 
                        the mortgage shall be executed by a mortgagor 
                        who shall have paid on account of the property 
                        at least 1 percent of the cost of acquisition 
                        (as determined by the Secretary) in cash or its 
                        equivalent.
                    ``(B) Mortgages covered.--A mortgage described in 
                this subparagraph is a mortgage--
                            ``(i) under which the mortgagor is an 
                        individual who--
                                    ``(I) is employed on a full-time 
                                basis as (aa) a teacher or 
                                administrator in a public or private 
                                school that provides elementary or 
                                secondary education, as determined 
                                under State law, except that secondary 
                                education shall not include any 
                                education beyond grade 12, or (bb) a 
                                public safety officer (as such term is 
                                defined in section 1204 of the Omnibus 
                                Crime Control and Safe Streets Act of 
                                1968 (42 U.S.C. 3796b), except that 
                                such term shall not include any officer 
                                serving a public agency of the Federal 
                                Government); and
                                    ``(II) has not, during the 12-month 
                                period ending upon the insurance of the 
                                mortgage, had any present ownership 
                                interest in a principal residence 
                                located in the jurisdiction described 
                                in clause (ii); and
                            ``(ii) made for a property that is located 
                        within the jurisdiction of--
                                    ``(I) in the case of a mortgage of 
                                a mortgagor described in clause 
                                (i)(I)(aa), the local educational 
                                agency (as such term is defined in 
                                section 14101 of the Elementary and 
                                Secondary Education Act of 1965 (20 
                                U.S.C. 8801)) for the school in which 
                                the mortgagor is employed (or, in the 
                                case of a mortgagor employed in a 
                                private school, the local educational 
                                agency having jurisdiction for the area 
                                in which the private school is 
                                located); or
                                    ``(II) in the case of a mortgage of 
                                a mortgagor described in clause 
                                (i)(I)(bb), the jurisdiction served by 
                                the public law enforcement agency, 
                                firefighting agency, or rescue or 
                                ambulance agency that employs the 
                                mortgagor.''.
    (b) Deferral and Reduction of Up-Front Premium.--Section 203(c) of 
the National Housing Act (12 U.S.C. 1709(c)(2)) is amended--
            (1) in paragraph (2), in the matter preceding subparagraph 
        (A), by striking ``Notwithstanding'' and inserting ``Except as 
        provided in paragraph (3) and notwithstanding''; and
            (2) by adding at the end the following new paragraph:
    ``(3) Deferral and reduction of up-front premium.--In the case of 
any mortgage described in subsection (b)(10)(B):
            ``(A) Paragraph (2)(A) of this subsection (relating to 
        collection of up-front premium payments) shall not apply.
            ``(B) If, at any time during the 5-year period beginning on 
        the date of the insurance of the mortgage, the mortgagor ceases 
        to be employed as described in subsection (b)(10)(B)(i)(I) or 
        pays the principal obligation of the mortgage in full, the 
        Secretary shall at such time collect a single premium payment 
        in an amount equal to the amount of the single premium payment 
        that, but for this paragraph, would have been required under 
        paragraph (2)(A) of this subsection with respect to the 
        mortgage, as reduced by 20 percent of such amount for each 
        successive 12-month period completed during such 5-year period 
        before such cessation or prepayment occurs.''.

SEC. 204. PREVENTING FRAUD IN REHABILITATION LOAN PROGRAM.

    (a) In General.--Section 203(k) of the National Housing Act (12 
U.S.C. 1709(k)) is amended by adding at the end the following new 
paragraph:
    ``(7) Prevention of fraud.--To prevent fraud under the program for 
loan insurance authorized under this subsection, the Secretary shall, 
by regulation, take the following actions:
            ``(A) Prohibition of identity of interest.--The Secretary 
        shall prohibit any identity-of-interest, as such term is 
        defined by the Secretary, between any of the following parties 
        involved in a loan insured under this subsection: the borrower 
        (including, in the case of a borrower that is a nonprofit 
        organization, any member of the board of directors or the staff 
        of the organization), the lender, any consultant, any real 
        estate agent, any property inspector, and any appraiser. 
        Nothing in this subparagraph may be construed to prohibit or 
        restrict, or authorize the Secretary to prohibit or restrict, 
        the functioning of a affiliated business arrangement that 
        complies with the requirements under section 8(c)(4) of the 
        Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 
        2607(c)(4)).
            ``(B) Nonprofit participation.--The Secretary shall 
        establish minimum standards for a nonprofit organization to 
        participate in the program, which shall include--
                    ``(i) requiring such an organization to disclose to 
                the Secretary its taxpayer identification number and 
                evidence sufficient to indicate that the organization 
                is an organization described in section 501(c) of the 
                Internal Revenue Code of 1986 that is exempt from 
                taxation under subtitle A of such Code;
                    ``(ii) requiring that the board of directors of 
                such an organization be comprised only of individuals 
                who do not receive any compensation or other thing of 
                value by reason of their service on the board and who 
                have no personal financial interest in the 
                rehabilitation project of the organization that is 
                financed with the loan insured under this subsection;
                    ``(iii) requiring such an organization to submit to 
                the Secretary financial statements of the organization 
                for the most recent 2 years, which have been prepared 
                by a party that is unaffiliated with the organization 
                and is qualified to prepare financial statements;
                    ``(iv) limiting to 10 the number of loans that are 
                insured under this subsection, made to any single such 
                organization, and, at any one time, have an outstanding 
                balance of principal or interest, except that the 
                Secretary may increase such numerical limitation on a 
                case-by-case basis for good cause shown; and
                    ``(v) requiring such an organization to have been 
                certified by the Secretary as meeting the requirements 
                under this subsection and otherwise eligible to 
                participate in the program not more than 2 years before 
                obtaining a loan insured under this section.
            ``(C) Completion of work.--The Secretary shall prohibit any 
        lender making a loan insured under this subsection from 
        disbursing the final payment of loan proceeds unless the lender 
        has received affirmation, from the borrower under the loan, 
        both in writing and pursuant to an interview in person or over 
        the telephone, that the rehabilitation activities financed by 
        the loan have been satisfactorily completed.
            ``(D) Consultant standards.--The Secretary shall require 
        that any consultant, as such term is defined by the Secretary, 
        who is involved in a home inspection, site visit, or 
        preparation of bids with respect to any loan insured under this 
        section shall meet such standards established by the Secretary 
        to ensure accurate inspections and preparation of bids.
            ``(E) Contractor qualification.--The Secretary shall 
        require, in the case of any loan that is insured under this 
        subsection and involves rehabilitation with a cost of $25,000 
        or more, that the contractor or other person performing or 
        supervising the rehabilitation activities financed by the loan 
        shall--
                    ``(i) be certified by a nationally recognized 
                organization as meeting industry standards for quality 
                of workmanship, training, and continuing education, 
                including financial management;
                    ``(ii) be licensed to conduct such activities by 
                the State or unit of general local government in which 
                the rehabilitation activities are being completed; or
                    ``(iii) be bonded or provide such equivalent 
                protection, as the Secretary may require.''.
    (b) Report on Activity of Nonprofit Organizations Under Program.--
Not later than 60 days after the date of the enactment of this Act, the 
Secretary of Housing and Urban Development shall submit a report to the 
Congress regarding the participation of nonprofit organizations under 
the rehabilitation loan program under section 203(k) of the National 
Housing Act (12 U.S.C. 1709(k)). The report shall--
            (1) determine and describe the extent of participation in 
        the program by such organizations;
            (2) identify and compare the default and claim rates for 
        loans made under the program to nonprofit organizations and to 
        owner-occupier participants;
            (3) analyze the impact, on such organizations and the 
        program, of prohibiting such organizations from participating 
        in the program; and
            (4) identify other opportunities for such organizations to 
        acquire financing or credit enhancement for rehabilitation 
        activities.
    (c) Regulations.--The Secretary of Housing and Urban Development 
shall issue final regulations and any other administrative orders or 
notices necessary to carry out the provisions of this section and the 
amendments made by this section not later than 120 days after the date 
of the enactment of this Act.

SEC. 205. NEIGHBORHOOD TEACHER PROGRAM.

    (a) Short Title.--This section may be cited as the ``Neighborhood 
Teachers Act''.
    (b) Congressional Findings.--The Congress finds that--
            (1) teachers are an integral part of our communities;
            (2) other than families, teachers are often the most 
        important mentors to children, providing them with the values 
        and skills for self-fulfillment in adult life; and
            (3) the Neighborhood Teachers Act recognizes the value 
        teachers bring to community and family life and is designed to 
        encourage and reward teachers that serve in our most needy 
        communities.
    (c) Discount and Downpayment Assistance for Teachers.--Section 
204(h) of the National Housing Act (12 U.S.C. 1710(h)) is amended--
            (1) by redesignating paragraphs (7) through (10) as 
        paragraphs (8) through (11), respectively; and
            (2) by inserting after paragraph (6) the following new 
        paragraph:
            ``(7) 50 percent discount for teachers purchasing 
        properties that are eligible assets.--
                    ``(A) Discount.--A property that is an eligible 
                asset and is sold, during fiscal years 2000 through 
                2004, to a teacher for use in accordance with 
                subparagraph (B) shall be sold at a price that is equal 
                to 50 percent of the appraised value of the eligible 
                property (as determined in accordance with paragraph 
                (6)(B)). In the case of a property eligible for both a 
                discount under this paragraph and a discount under 
                paragraph (6), the discount under paragraph (6) shall 
                not apply.
                    ``(B) Primary residence.--An eligible property sold 
                pursuant to a discount under this paragraph shall be 
                used, for not less than the 3-year period beginning 
                upon such sale, as the primary residence of a teacher.
                    ``(C) Sale methods.--The Secretary may sell an 
                eligible property pursuant to a discount under this 
                paragraph--
                            ``(i) to a unit of general local government 
                        or nonprofit organization (pursuant to 
                        paragraph (4) or otherwise), for resale or 
                        transfer to a teacher; or
                            ``(ii) directly to a purchaser who is a 
                        teacher.
                    ``(D) Resale.--In the case of any purchase by a 
                unit of general local government or nonprofit 
                organization of an eligible property sold at a 
                discounted price under this paragraph, the sale 
                agreement under paragraph (8) shall--
                            ``(i) require the purchasing unit of 
                        general local government or nonprofit 
                        organization to provide the full benefit of the 
                        discount to the teacher obtaining the property; 
                        and
                            ``(ii) in the case of a purchase involving 
                        multiple eligible assets, any of which is such 
                        an eligible property, designate the specific 
                        eligible property or properties to be subject 
                        to the requirements of subparagraph (B).
                    ``(E) Mortgage downpayment assistance.--If a 
                teacher purchases an eligible property pursuant to a 
                discounted sale price under this paragraph and finances 
                such purchase through a mortgage insured under this 
                title, notwithstanding any provision of section 203 the 
                downpayment on such mortgage shall be $100.
                    ``(F) Prevention of undue profit.--The Secretary 
                shall issue regulations to prevent undue profit from 
                the resale of eligible properties in violation of the 
                requirement under subparagraph (B).
                    ``(G) Awareness program.--From funds made available 
                for salaries and expenses for the Office of Policy 
                Support of the Department of Housing and Urban 
                Development, each field office of the Department shall 
                make available to elementary schools and secondary 
                schools within the jurisdiction of the field office and 
                to the public--
                            ``(i) a list of eligible properties located 
                        within the jurisdiction of the field office 
                        that are available for purchase by teachers 
                        under this paragraph; and
                            ``(ii) other information designed to make 
                        such teachers and the public aware of the 
                        discount and downpayment assistance available 
                        under this paragraph.
                    ``(H) Definitions.--For the purposes of this 
                paragraph, the following definitions shall apply:
                            ``(i) The terms `elementary school' and 
                        `secondary school' have the meanings given such 
                        terms in section 14101 of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        8801), except that, for purposes of this 
                        paragraph, elementary education (as used in 
                        such section) shall include pre-Kindergarten 
                        education.
                            ``(ii) The term `eligible property' means 
                        an eligible asset described in paragraph (2)(A) 
                        of this subsection.
                            ``(iii) The term `teacher' means an 
                        individual who is employed on a full-time 
                        basis, in an elementary or secondary school, as 
                        a State-certified classroom teacher or 
                        administrator.''.
    (d) Conforming Amendments.--Section 204(h) of the National Housing 
Act (12 U.S.C. 1710(h)) is amended--
            (1) in paragraph (4)(B)(ii), by striking ``paragraph (7)'' 
        and inserting ``paragraph (8)'';
            (2) in paragraph (5)(B)(i), by striking ``paragraph (7)'' 
        and inserting ``paragraph (8)''; and
            (3) in paragraph (6)(A), by striking ``paragraph (8)'' and 
        inserting ``paragraph (9)''.
    (e) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement the amendments made by this section.

SEC. 206. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION RISK-SHARING 
              DEMONSTRATION.

    Section 249 of the National Housing Act (12 U.S.C. 1715z-14) is 
amended--
            (1) by striking the section heading and inserting the 
        following:

                    ``risk-sharing demonstration'';

            (2) by striking ``reinsurance'' each place such term 
        appears and insert ``risk-sharing'';
            (3) in subsection (a)--
                    (A) in the first sentence, by striking ``private 
                mortgage insurers'' and inserting ``insured community 
                development financial institutions''; and
                    (B) in the second sentence--
                            (i) by striking ``two'' and inserting 
                        ``4''; and
                            (ii) by striking ``March 15, 1988'' and 
                        inserting ``the expiration of the 5-year period 
                        beginning on the date of the enactment of the 
                        American Homeownership and Economic Opportunity 
                        Act of 2000'';
            (4) in subsection (b)--
                    (A) by striking ``private mortgage insurance 
                companies'' each place such term appears and inserting 
                ``insured community development financial 
                institutions'';
                    (B) in the first sentence, by striking ``which have 
                been determined to be qualified insurers under section 
                302(b)(2)(C)'';
                    (C) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) assume the first loss on any mortgage insured 
        pursuant to section 203(b), 234, or 245 that covers a one- to 
        four-family dwelling and is included in the program under this 
        section, up to the percentage of loss that is set forth in the 
        risk-sharing contract;''; and
                    (D) in paragraph (2)--
                            (i) by striking ``carry out (under 
                        appropriate delegation) such'' and inserting 
                        ``delegate underwriting,''; and
                            (ii) by striking ``function'' and inserting 
                        ``functions'';
            (5) in subsection (c)--
                    (A) in the first sentence--
                            (i) by striking ``of'' the first place it 
                        appears and insert ``for'';
                            (ii) by striking ``insurance reserves'' and 
                        inserting ``loss reserves''; and
                            (iii) by striking ``such insurance'' and 
                        inserting ``such reserves''; and
                    (B) in the second sentence, by striking ``private 
                mortgage insurance company'' and inserting ``insured 
                community development financial institution'';
            (6) in subsection (d), by striking ``private mortgage 
        insurance company'' and inserting ``insured community 
        development financial institution''; and
            (7) by adding at the end the following new subsection:
    ``(e) Insured Community Development Financial Institutions.--For 
purposes of this section, the term `insured community development 
financial institution' means a community development financial 
institution, as such term is defined in section 103 of Reigle Community 
Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702) 
that is an insured depository institution (as such term is defined in 
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or an 
insured credit union (as such term is defined in section 101 of the 
Federal Credit Union Act (12 U.S.C. 1752)).''.

SEC. 207. HYBRID ARMS.

    (a) In General.--Section 251 of the National Housing Act (12 U.S.C. 
1715z-16) is amended--
            (1) in subsection (a), by inserting ``In General.--'' after 
        ``(a)'';
            (2) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Disclosure.--In the case of any loan application for a 
mortgage to be insured under any provision of this section, the 
Secretary shall require that the prospective mortgagee for the mortgage 
shall, at the time of loan application, make available to the 
prospective mortgagor a written explanation of the features of an 
adjustable rate mortgage consistent with the disclosure requirements 
applicable to variable rate mortgages secured by a principal dwelling 
under the Truth in Lending Act (15 U.S.C. 1601 et seq.).'';
            (3) in subsection (c), by inserting ``Limitation on 
        Insurance Authority.--'' after ``(c)''; and
            (4) by adding at the end the following new subsection:
    ``(d) Hybrid ARMs.--The Secretary may insure under this subsection 
a mortgage that--
            ``(1) has an effective rate of interest that shall be--
                    ``(A) fixed for a period of not less than the first 
                3 years of the mortgage term;
                    ``(B) initially adjusted by the mortgagee upon the 
                expiration of such period and annually thereafter; and
                    ``(C) in the case of the initial interest rate 
                adjustment, shall be subject to the limitation under 
                clause (2) of the last sentence of subsection (a) 
                (relating to prohibiting annual increases of more than 
                1 percent) only if the interest rate remains fixed for 
                5 or fewer years; and
            ``(2) otherwise meets the requirements for insurance under 
        subsection (a) that are not inconsistent with the requirements 
        under paragraph (1) of this subsection.''.
    (b) Implementation.--The Secretary of Housing and Urban Development 
may implement section 251(d) of the National Housing Act (12 U.S.C. 
1715z-16(d)), as added by subsection (a) of this section, in advance of 
rulemaking.

SEC. 208. HOME EQUITY CONVERSION MORTGAGES.

    (a) Insurance for Mortgages to Refinance Existing HECMs.--
            (1) In General.--Section 255 of the National Housing Act 
        (12 U.S.C. 1715z-20) is amended--
                    (A) by redesignating subsection (k) as subsection 
                (m); and
                    (B) by inserting after subsection (j) the following 
                new subsection:
    ``(k) Insurance Authority for Refinancings.--
            ``(1) In general.--The Secretary may, upon application by a 
        mortgagee, insure under this subsection any mortgage given to 
        refinance an existing home equity conversion mortgage insured 
        under this section.
            ``(2) Anti-churning disclosure.--The Secretary shall, by 
        regulation, require that the mortgagee of a mortgage insured 
        under this subsection, provide to the mortgagor, within an 
        appropriate time period and in a manner established in such 
        regulations, a good faith estimate of: (A) the total cost of 
        the refinancing; and (B) the increase in the mortgagor's 
        principal limit as measured by the estimated initial principal 
        limit on the mortgage to be insured under this subsection less 
        the current principal limit on the home equity conversion 
        mortgage that is being refinanced and insured under this 
        subsection.
            ``(3) Waiver of counseling requirement.--The mortgagor 
        under a mortgage insured under this subsection may waive the 
        applicability, with respect to such mortgage, of the 
        requirements under subsection (d)(2)(B) (relating to third 
        party counseling), but only if--
                    ``(A) the mortgagor has received the disclosure 
                required under paragraph (2);
                    ``(B) the increase in the principal limit described 
                in paragraph (2) exceeds the amount of the total cost 
                of refinancing (as described in such paragraph) by an 
                amount to be determined by the Secretary; and
                    ``(C) the time between the closing of the original 
                home equity conversion mortgage that is refinanced 
                through the mortgage insured under this subsection and 
                the application for a refinancing mortgage insured 
                under this subsection does not exceed 5 years.
            ``(4) Credit for premiums paid.--Notwithstanding section 
        203(c)(2)(A), the Secretary may reduce the amount of the single 
        premium payment otherwise collected under such section at the 
        time of the insurance of a mortgage refinanced and insured 
        under this subsection. The amount of the single premium for 
        mortgages refinanced under this subsection shall be determined 
        by the Secretary based on the actuarial study required under 
        paragraph (5).
            ``(5) Actuarial study.--Not later than 180 days after the 
        date of the enactment of the American Homeownership and 
        Economic Opportunity Act of 2000, the Secretary shall conduct 
        an actuarial analysis to determine the adequacy of the 
        insurance premiums collected under the program under this 
        subsection with respect to--
                    ``(A) a reduction in the single premium payment 
                collected at the time of the insurance of a mortgage 
                refinanced and insured under this subsection;
                    ``(B) the establishment of a single national limit 
                on the benefits of insurance under subsection (g) 
                (relating to limitation on insurance authority); and
                    ``(C) the combined effect of reduced insurance 
                premiums and a single national limitation on insurance 
                authority.
            ``(6) Fees.--The Secretary may establish a limit on the 
        origination fee that may be charged to a mortgagor under a 
        mortgage insured under this subsection, except that such 
        limitation shall provide that the origination fee may be fully 
        financed with the mortgage and shall include any fees paid to 
        correspondent mortgagees approved by the Secretary. The 
        Secretary shall prohibit the charging of any broker fees in 
        connection with mortgages insured under this subsection.''.
            (2) Regulations.--The Secretary shall issue any final 
        regulations necessary to implement the amendments made by 
        paragraph (1) of this subsection, which shall take effect not 
        later than the expiration of the 180-day period beginning on 
        the date of the enactment of this Act. The regulations shall be 
        issued after notice and opportunity for public comment in 
        accordance with the procedure under section 553 of title 5, 
        United States Code, applicable to substantive rules 
        (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such 
        section).
    (b) Housing Cooperatives.--Section 255(b) of the National Housing 
Act (12 U.S.C. 1715z-20(b)) is amended--
            (1) in paragraph (2), by striking ```mortgage',''; and
            (2) by adding at the end the following new paragraphs:
            ``(4) Mortgage.--The term `mortgage' means a first mortgage 
        or first lien on real estate, in fee simple, on all stock 
        allocated to a dwelling in a residential cooperative housing 
        corporation, or on a leasehold--
                    ``(A) under a lease for not less than 99 years that 
                is renewable; or
                    ``(B) under a lease having a period of not less 
                than 10 years to run beyond the maturity date of the 
                mortgage.
            ``(5) First mortgage.--The term `first mortgage' means such 
        classes of first liens as are commonly given to secure advances 
        on, or the unpaid purchase price of, real estate or all stock 
        allocated to a dwelling unit in a residential cooperative 
        housing corporation, under the laws of the State in which the 
        real estate or dwelling unit is located, together with the 
        credit instruments, if any, secured thereby.''.
    (c) Waiver of Up-Front Premiums for Mortgages Used for Costs of 
Long-Term Care Insurance or Health Care.--Section 255 of the National 
Housing Act (12 U.S.C. 1715z-20) is amended by inserting after 
subsection (k) (as added by subsection (a) of this section) the 
following new subsection:
    ``(l) Waiver of Up-Front Premiums.--
            ``(1) Mortgages to fund long-term care insurance.--In the 
        case of any mortgage insured under this section under which the 
        total amount (except as provided in paragraph (3)) of all 
        future payments described in subsection (b)(3) will be used 
        only for costs of a qualified long-term care insurance contract 
        (as such term is defined in section 7702B of the Internal 
        Revenue Code of 1986 (26 U.S.C. 7702B)) that covers the 
        mortgagor or members of the household residing in the property 
        that is subject to the mortgage, notwithstanding section 
        203(c)(2), the Secretary shall not charge or collect the single 
        premium payment otherwise required under subparagraph (A) of 
        such section to be paid at the time of insurance.
            ``(2) Mortgages to fund health care costs.--In the case of 
        any mortgage insured under this section under which the future 
        payments described in subsection (b)(3) will be used only for 
        costs for health care services (as such term is defined by the 
        Secretary) for the mortgagor or members of the household 
        residing in the property that is subject to the mortgage and 
        comply with limitations on such payments, as shall be 
        established by the Secretary and based upon the purposes of 
        this subsection and the accumulated equity of the mortgagor in 
        the property, notwithstanding section 203(c)(2), the Secretary 
        shall not charge or collect the single premium payment 
        otherwise required under subparagraph (A) of such section to be 
        paid at the time of insurance.
            ``(3) Authority to refinance existing mortgage and finance 
        closing costs.--A mortgage described in paragraphs (1) or (2) 
        may provide financing of amounts that are used to satisfy 
        outstanding mortgage obligations (in accordance with such 
        limitations as the Secretary shall prescribe) any amounts used 
        for initial service charges, appraisal, inspection, and other 
        fees (as approved by the Secretary) in connection with such 
        mortgage, and the amount of future payments described in 
        subsection (b)(3) under the mortgage shall be reduced 
        accordingly.''.
    (d) Study of Single National Mortgage Limit.--The Secretary of 
Housing and Urban Development shall conduct an actuarially based study 
of the effects of establishing, for mortgages insured under section 255 
of the National Housing Act (12 U.S.C. 1715z-20), a single maximum 
mortgage amount limitation in lieu of applicability of section 
203(b)(2) of such Act (12 U.S.C. 1709(b)(2)). The study shall--
            (1) examine the effects of establishing such limitation at 
        different dollar amounts; and
            (2) examine the effects of such various limitations on--
                    (A) the risks to the General Insurance Fund 
                established under section 519 of such Act;
                    (B) the mortgage insurance premiums that would be 
                required to be charged to mortgagors to ensure 
                actuarial soundness of such Fund; and
                    (C) take into consideration the various approaches 
                to providing credit to borrowers who refinance home 
                equity conversion mortgages insured under section 255 
                of such Act.
Not later than 180 days after the date of the enactment of this Act, 
the Secretary shall complete the study under this subsection and submit 
a report describing the study and the results of the study to the 
Committee on Banking and Financial Services of the House of 
Representatives and to the Committee on Banking, Housing, and Urban 
Affairs of the Senate.

SEC. 209. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP PILOT PROGRAM.

    (a) Assistance for Law Enforcement Officers.--The Secretary of 
Housing and Urban Development shall carry out a pilot program in 
accordance with this section to assist Federal, State, and local law 
enforcement officers purchasing homes in locally-designated high-crime 
areas.
    (b) Eligibility.--To be eligible for assistance under this section, 
a law enforcement officer shall--
            (1) have completed not less than 6 months of service as a 
        law enforcement officer as of the date that the law enforcement 
        officer applies for such assistance; and
            (2) agree, in writing, to use the residence purchased with 
        such assistance as the primary residence of the law enforcement 
        officer for not less than 3 years after the date of purchase.
    (c) Mortgage Assistance.--If a law enforcement officer purchases a 
home in locally-designated high-crime area and finances such purchase 
through a mortgage insured under title II of the National Housing Act 
(12 U.S.C. 1707 et seq.), notwithstanding any provision of section 203 
or any other provision of the National Housing Act, the following shall 
apply:
            (1) Downpayment.--
                    (A) In general.--There shall be no downpayment 
                required if the purchase price of the property is not 
                more than the reasonable value of the property, as 
                determined by the Secretary.
                    (B) Purchase price exceeds value.--If the purchase 
                price of the property exceeds the reasonable value of 
                the property, as determined by the Secretary, the 
                required downpayment shall be the difference between 
                such reasonable value and the purchase price.
            (2) Closing costs.--The closing costs and origination fee 
        for such mortgage may be included in the loan amount.
            (3) Insurance premium payment.--There shall be 1 insurance 
        premium payment due on the mortgage. Such insurance premium 
        payment--
                    (A) shall be equal to 1 percent of the loan amount;
                    (B) shall be due and considered earned by the 
                Secretary at the time of the loan closing; and
                    (C) may be included in the loan amount and paid 
                from the loan proceeds.
    (d) Locally-Designated High-Crime Area.--
            (1) In general.--Any unit of local government may request 
        that the Secretary designate any area within the jurisdiction 
        of that unit of local government as a locally-designated high-
        crime area for purposes of this section if the proposed area--
                    (A) has a crime rate that is significantly higher 
                than the crime rate of the non-designated area that is 
                within the jurisdiction of the unit of local 
                government; and
                    (B) has a population that is not more than 25 
                percent of the total population of area within the 
                jurisdiction of the unit of local government.
            (2) Deadline for consideration of request.--Not later than 
        60 days after receiving a request under paragraph (1), the 
        Secretary shall approve or disapprove the request.
    (e) Law Enforcement Officer.--For purposes of this section, the 
term ``law enforcement officer'' has such meaning as the Secretary 
shall provide, except that such term shall include any individual who 
is employed as an officer in a correctional institution.
    (f) Sunset.--The Secretary shall not approve any application for 
assistance under this section that is received by the Secretary after 
the expiration of the 3-year period beginning on the date that the 
Secretary first makes available assistance under the pilot program 
under this section.

SEC. 210. STUDY OF MANDATORY INSPECTION REQUIREMENT UNDER SINGLE FAMILY 
              HOUSING MORTGAGE INSURANCE PROGRAM.

    The Comptroller General of the United States shall conduct a study 
regarding the inspection of properties purchased with loans insured 
under section 203 of the National Housing Act. The study shall evaluate 
the following issues:
            (1) The feasibility of requiring inspections of all 
        properties purchased with loans insured under such section.
            (2) The level of financial losses or savings to the Mutual 
        Mortgage Insurance Fund that are likely to occur if inspections 
        are required on properties purchased with loans insured under 
        such section.
            (3) The potential impact on the process of buying a home if 
        inspections of properties purchased with loans insured under 
        such section are required, including the process of buying a 
        home in underserved areas where losses to the Mutual Mortgage 
        Insurance Fund are greatest.
            (4) The difference, if any, in the quality of homes 
        purchased with loans insured under such section that are 
        inspected before purchase and such homes that are not inspected 
        before purchase.
            (5) The cost to homebuyers of requiring inspections before 
        purchase of properties with loans insured under such section.
            (6) The extent, if any, to which requiring inspections of 
        properties purchased with loans insured under such section will 
        result in adverse selection of loans insured under such 
        section.
            (7) The extent of homebuyer knowledge regarding property 
        inspections and the extent to which such knowledge affects the 
        decision of homebuyers to opt for or against having a property 
        inspection before purchasing a home.
            (8) The impact of the Homebuyer Protection Plan implemented 
        by the Department of Housing and Urban Development on the 
        number of appraisers authorized to appraise homes with 
        mortgages insured under section 203 of the National Housing 
        Act.
            (9) The cost to homebuyers incurred as a result of the 
        Homebuyer Protection plan, taking into consideration, among 
        other factors, an increase in appraisal fees.
            (10) The benefit or adverse impact of the Homebuyer 
        Protection Plan on minority homebuyers.
            (11) The extent to which the appraisal requirements of the 
        Homebuyer Protection Plan conflict with State laws regarding 
        appraisals and home inspections.
    Not later than the expiration of the 1-year period beginning on the 
date of the enactment of this Act, the Comptroller General shall submit 
to the Congress a report containing the results of the study and any 
recommendations with respect to the issues specified under this 
section.

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

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall submit a report to the Congress containing recommendations for 
improvements to the property improvement loan insurance program under 
title I of the National Housing Act, including improvements designed to 
address problems relating to home improvement contractors obtaining 
loans on behalf of homeowners.
    (b) Consultation.--In developing and determining recommendations 
for inclusion in the report under this section and in preparing the 
report, the Secretary shall consult with interested persons, 
organizations, and entities, including representatives of the lending 
industry, the home improvement industry, and consumer organizations.

               TITLE III--SECTION 8 HOMEOWNERSHIP OPTION

SEC. 301. DOWNPAYMENT ASSISTANCE.

    (a) Amendments.--Section 8(y) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(y)) is amended--
            (1) by redesignating paragraph (7) as paragraph (8); and
            (2) by inserting after paragraph (6) the following new 
        paragraph:
            ``(7) Downpayment assistance.--
                    ``(A) Authority.--A public housing agency may, in 
                lieu of providing monthly assistance payments under 
                this subsection on behalf of a family eligible for such 
                assistance and at the discretion of the public housing 
                agency, provide assistance for the family in the form 
                of a single grant to be used only as a contribution 
                toward the downpayment required in connection with the 
                purchase of a dwelling for fiscal year 2000 and each 
                fiscal year thereafter to the extent provided in 
                advance in appropriations Acts.
                    ``(B) Amount.--The amount of a downpayment grant on 
                behalf of an assisted family may not exceed the amount 
                that is equal to the sum of the assistance payments 
                that would be made during the first year of assistance 
                on behalf of the family, based upon the income of the 
                family at the time the grant is to be made.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect immediately after the amendments made by section 555(c) of 
the Quality Housing and Work Responsibility Act of 1998 take effect 
pursuant to such section.

SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSISTANCE FOR DISABLED 
              FAMILIES.

    (a) In General.--A public housing agency providing tenant-based 
assistance on behalf of an eligible family under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f) may provide 
assistance for a disabled family that purchases a dwelling unit 
(including a dwelling unit under a lease-purchase agreement) that will 
be owned by 1 or more members of the disabled family and will be 
occupied by the disabled family, if the disabled family--
            (1) purchases the dwelling unit before the expiration of 
        the 3-year period beginning on the date that the Secretary 
        first implements the pilot program under this section;
            (2) demonstrates that the disabled family has income from 
        employment or other sources (including public assistance), as 
        determined in accordance with requirements of the Secretary, 
        that is not less than twice the payment standard established by 
        the public housing agency (or such other amount as may be 
        established by the Secretary);
            (3) except as provided by the Secretary, demonstrates at 
        the time the disabled family initially receives tenant-based 
        assistance under this section that one or more adult members of 
        the disabled family have achieved employment for the period as 
        the Secretary shall require;
            (4) participates in a homeownership and housing counseling 
        program provided by the agency; and
            (5) meets any other initial or continuing requirements 
        established by the public housing agency in accordance with 
        requirements established by the Secretary.
    (b) Determination of Amount of Assistance.--
            (1) In general.--
                    (A) Monthly expenses not exceeding payment 
                standard.--If the monthly homeownership expenses, as 
                determined in accordance with requirements established 
                by the Secretary, do not exceed the payment standard, 
                the monthly assistance payment shall be the amount by 
                which the homeownership expenses exceed the highest of 
                the following amounts, rounded to the nearest dollar:
                            (i) 30 percent of the monthly adjusted 
                        income of the disabled family.
                            (ii) 10 percent of the monthly income of 
                        the disabled family.
                            (iii) If the disabled family is receiving 
                        payments for welfare assistance from a public 
                        agency, and a portion of those payments, 
                        adjusted in accordance with the actual housing 
                        costs of the disabled family, is specifically 
                        designated by that agency to meet the housing 
                        costs of the disabled family, the portion of 
                        those payments that is so designated.
                    (B) Monthly expenses exceed payment standard.--If 
                the monthly homeownership expenses, as determined in 
                accordance with requirements established by the 
                Secretary, exceed the payment standard, the monthly 
                assistance payment shall be the amount by which the 
                applicable payment standard exceeds the highest of the 
                amounts under clauses (i), (ii), and (iii) of 
                subparagraph (A).
            (2) Calculation of amount.--
                    (A) Low-income families.--A disabled family that is 
                a low-income family shall be eligible to receive 100 
                percent of the amount calculated under paragraph (1).
                    (B) Income between 81 and 89 percent of median.--A 
                disabled family whose income is between 81 and 89 
                percent of the median for the area shall be eligible to 
                receive 66 percent of the amount calculated under 
                paragraph (1).
                    (C) Income between 90 and 99 percent of median.--A 
                disabled family whose income is between 90 and 99 
                percent of the median for the area shall be eligible to 
                receive 33 percent of the amount calculated under 
                paragraph (1).
                    (D) Income more than 99 percent of median.--A 
                disabled family whose income is more than 99 percent of 
                the median for the area shall not be eligible to 
                receive assistance under this section.
    (c) Inspections and Contract Conditions.--
            (1) In general.--Each contract for the purchase of a 
        dwelling unit to be assisted under this section shall--
                    (A) provide for pre-purchase inspection of the 
                dwelling unit by an independent professional; and
                    (B) require that any cost of necessary repairs be 
                paid by the seller.
            (2) Annual inspections not required.--The requirement under 
        subsection (o)(8)(A)(ii) of the United States Housing Act of 
        1937 for annual inspections shall not apply to dwelling units 
        assisted under this section.
    (d) Other Authority of the Secretary.--The Secretary may--
            (1) limit the term of assistance for a disabled family 
        assisted under this section;
            (2) provide assistance for a disabled family for the entire 
        term of a mortgage for a dwelling unit if the disabled family 
        remains eligible for such assistance for such term; and
            (3) modify the requirements of this section as the 
        Secretary determines to be necessary to make appropriate 
        adaptations for lease-purchase agreements.
    (e) Assistance Payments Sent to Lender.--The Secretary shall remit 
assistance payments under this section directly to the mortgagee of the 
dwelling unit purchased by the disabled family receiving such 
assistance payments.
    (f) Inapplicability of Certain Provisions.--Assistance under this 
section shall not be subject to the requirements of the following 
provisions:
            (1) Subsection (c)(3)(B) of section 8 of the United States 
        Housing Act of 1937.
            (2) Subsection (d)(1)(B)(i) of section 8 of the United 
        States Housing Act of 1937.
            (3) Any other provisions of section 8 of the United States 
        Housing Act of 1937 governing maximum amounts payable to owners 
        and amounts payable by assisted families.
            (4) Any other provisions of section 8 of the United States 
        Housing Act of 1937 concerning contracts between public housing 
        agencies and owners.
            (5) Any other provisions of the United States Housing Act 
        of 1937 that are inconsistent with the provisions of this 
        section.
    (g) Reversion to Rental Status.--
            (1) Non-fha mortgages.--If a disabled family receiving 
        assistance under this section defaults under a mortgage not 
        insured under the National Housing Act, the disabled family may 
        not continue to receive rental assistance under section 8 of 
        the United States Housing Act of 1937 unless it complies with 
        requirements established by the Secretary.
            (2) All mortgages.--A disabled family receiving assistance 
        under this section that defaults under a mortgage may not 
        receive assistance under this section for occupancy of another 
        dwelling unit owned by 1 or more members of the disabled 
        family.
            (3) Exception.--This subsection shall not apply if the 
        Secretary determines that the disabled family receiving 
        assistance under this section defaulted under a mortgage due to 
        catastrophic medical reasons or due to the impact of a 
        federally declared major disaster or emergency.
    (h) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement this section. Such regulations may not prohibit any public 
housing agency providing tenant-based assistance on behalf of an 
eligible family under section 8 of the United States Housing Act of 
1937 from participating in the pilot program under this section.
    (i) Definition of Disabled Family.--For the purposes of this 
section, the term ``disabled family'' has the meaning given the term 
``person with disabilities'' in section 811(k)(2) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013(k)(2)).

SEC. 303. FUNDING FOR PILOT PROGRAMS.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated $2,000,000 for fiscal year 2001 for assistance in 
connection with the existing homeownership pilot programs carried out 
under the demonstration program authorized under to section 555(b) of 
the Quality Housing and Work Responsibility Act of 1998 (Public Law 
105-276; 112 Stat. 2613).
    (b) Use.--Subject to subsection (c), amounts made available 
pursuant to this section shall be used only through such homeownership 
pilot programs to provide, on behalf of families participating in such 
programs, amounts for downpayments in connection with dwellings 
purchased by such families using assistance made available under 
section 8(y) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(y)). No such downpayment grant may exceed 20 percent of the 
appraised value of the dwelling purchased with assistance under such 
section 8(y).
    (c) Matching Requirement.--The amount of assistance made available 
under this section for any existing homeownership pilot program may not 
exceed twice the amount donated from sources other than this section 
for use under the program for assistance described in subsection (b). 
Amounts donated from other sources may include amounts from State 
housing finance agencies and Neighborhood Housing Services of America.

              TITLE IV--COMMUNITY DEVELOPMENT BLOCK GRANTS

SEC. 401. REAUTHORIZATION.

    (a) Authorization of Appropriations.--The last sentence of section 
103 of the Housing and Community Development Act of 1974 (42 U.S.C. 
5303) is amended to read as follows: ``For purposes of assistance under 
section 106, there is authorized to be appropriated $4,900,000,000 for 
fiscal year 2001 and such sums as may be necessary for each of fiscal 
years 2002, 2003, 2004, and 2005.''.
    (b) Entitlement Grants.--
            (1) In general.--Section 102(a)(5)(B) of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 5302(a)(5)(B)) is 
        amended--
                    (A) by inserting ``(I)'' after ``(iii)''; and
                    (B) by inserting before the period at the end the 
                following: ``, or (II) has a population in its 
                unincorporated areas of not less than 450,000, except 
                that a town or township which is designated as a city 
                pursuant to this subclause shall have only its 
                unincorporated areas considered as a city for purposes 
                of this title''.
            (2) Treatment as separate from urban counties.--Section 
        102(d) of the Housing and Community Development Act of 1974 (42 
        U.S.C. 5302(d)) is amended--
                    (A) by inserting ``(1)'' after ``(d)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) Notwithstanding paragraph (1), a town or township that is 
classified as a city by reason of subclause (II) of section 
102(a)(5)(B)(iii) shall be treated, for purposes of eligibility for a 
grant under section 106(b)(1) from amounts made available for a fiscal 
year beginning after the date of the enactment of the American 
Homeownership and Economic Opportunity Act of 2000, as an entity 
separate from the urban county in which it is located.''.
            (3) Eligibility of certain urban counties.--Section 
        102(a)(6) of the Housing and Community Development Act of 1974 
        (42 U.S.C. 5302(a)(6)) is amended--
            (1) in subparagraph (D)--
                    (A) in clause (v), by striking ``or'' at the end;
                    (B) in clause (vi), by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following new clause:
                    ``(vii)(I) has consolidated its government with one 
                or more municipal governments, such that within the 
                county boundaries there are no unincorporated areas, 
                (II) has a population of not less than 650,000, over 
                which the consolidated government has the authority to 
                undertake essential community development and housing 
                assistance activities, (III) for more than 10 years, 
                has been classified as an entitlement area for purposes 
                of allocating and distributing funds under section 106, 
                and (IV) as of the date of the enactment of this 
                clause, has over 90 percent of the county's population 
                within the jurisdiction of the consolidated 
                government.''; and
            (2) by adding at the end the following new subparagraph:
            ``(F) Notwithstanding any other provision of this 
        paragraph, any county that was classified as an urban county 
        pursuant to subparagraph (A) for fiscal year 1999, includes 10 
        cities each having a population of less than 50,000, and has a 
        population in its unincorporated areas of 190,000 or more but 
        less than 200,000, shall thereafter remain classified as an 
        urban county.''.

SEC. 402. PROHIBITION OF SET-ASIDES.

    Section 103 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5303), as amended by section 401 of this Act, is further 
amended--
            (1) by inserting after ``Sec. 103.'' the following: ``(a) 
        In General.--''; and
            (2) by adding at the end the following new subsection:
    ``(b) Prohibition of Set-Asides.--Except as provided in paragraphs 
(1) and (2) of section 106(a) and section 107, amounts appropriated 
pursuant to subsection (a) of this section or otherwise to carry out 
this title (other than section 108) shall be used only for formula-
based grants allocated pursuant to section 106 and may not be otherwise 
used unless the provision of law providing for such other use 
specifically refers to this subsection and specifically states that 
such provision modifies or supersedes the provisions of this 
subsection.''.

SEC. 403. PUBLIC SERVICES CAP.

    Section 105(a)(8) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)(8)) is amended by striking ``fiscal years 
1993'' and all that follows through ``unit of general local 
government'' and inserting the following: ``fiscal years 1993 through 
2006 to the City of Los Angeles, the County of Los Angeles, or any 
other unit of general local government located in the County of Los 
Angeles, such city, such county, or each such unit of general local 
government, respectively,''.

SEC. 404. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

    (a) Eligible Activities.--Section 105(a) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
            (1) in paragraph (22)(C), by striking ``and'' at the end;
            (2) in paragraph (23), by striking the period at the end 
        and inserting a semicolon; and
            (3) by inserting after paragraph (23) the following new 
        paragraph:
            ``(24) provision of direct assistance to facilitate and 
        expand homeownership among uniformed employees (including 
        policemen, firemen, and sanitation and other maintenance 
        workers) of, and teachers who are employees of, the 
        metropolitan city or urban county (or an agency or school 
        district serving such city or county) receiving grant amounts 
        under this title pursuant to section 106(b) or the unit of 
        general local government (or an agency or school district 
        serving such unit) receiving such grant amounts pursuant to 
        section 106(d), except that--
                    ``(A) such assistance may only be provided on 
                behalf of such employees who are first-time homebuyers 
                under the meaning given such term in section 104(14) of 
                the Cranston-Gonzalez National Affordable Housing Act 
                (42 U.S.C. 12704(14)), except that, for purposes of 
                this paragraph, such section shall be applied by 
                substituting `section 105(a)(24) of the Housing and 
                Community Development Act of 1974' for `title II';
                    ``(B) notwithstanding section 102(a)(20)(B) or any 
                other provision of this title, such assistance may be 
                provided on behalf of such employees whose family 
                incomes do not exceed--
                            ``(i) 115 percent of the median income of 
                        the area involved, as determined by the 
                        Secretary with adjustments for smaller and 
                        larger families; or
                            ``(ii) with respect only to areas that the 
                        Secretary determines have high housing costs, 
                        taking into consideration median house prices 
                        and median family incomes for the area, 150 
                        percent of the median income of the area 
                        involved, as determined by the Secretary with 
                        adjustments for smaller and larger families;
                    ``(C) such assistance shall be used only for 
                acquiring principal residences for such employees, in a 
                manner that involves obligating amounts with respect to 
                any particular mortgage over a period of one year or 
                less, by--
                            ``(i) providing amounts for downpayments on 
                        mortgages;
                            ``(ii) paying reasonable closing costs 
                        normally associated with the purchase of a 
                        residence;
                            ``(iii) obtaining pre- or post-purchase 
                        counseling relating to the financial and other 
                        obligations of homeownership; or
                            ``(iv) subsidizing mortgage interest rates; 
                        and
                    ``(D) any residence purchased using assistance 
                provided under this paragraph shall be subject to 
                restrictions on resale that are--
                            ``(i) established by the metropolitan city, 
                        urban county, or unit of general local 
                        government providing such assistance; and
                            ``(ii) determined by the Secretary to be 
                        appropriate to comply with subparagraphs (A) 
                        and (B) of section 215(b)(3) of the Cranston-
                        Gonzalez National Affordable Housing Act (42 
                        U.S.C. 12745(b)(3)), except that, for purposes 
                        of this paragraph, such subparagraphs shall be 
                        applied by substituting `section 105(a)(24) of 
                        the Housing and Community Development Act of 
                        1974' for `this title';''.
    (b) Primary Objectives.--Section 105(c) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5305(c)) is amended by 
adding at the end the following new paragraph:
    ``(5) Homeownership assistance for municipal employees.--
Notwithstanding any other provision of this title, any assisted 
activity described in subsection (a)(24) of this section shall be 
considered, for purposes of this title, to benefit persons of low and 
moderate income and to be directed toward the objective under section 
101(c)(3).''.

SEC. 405. TECHNICAL AMENDMENT RELATING TO BROWNFIELDS.

    Section 105(a) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5305(a)), as amended by section 404 of this Act, is further 
amended--
            (1) in paragraph (25), by striking the period and inserting 
        ``; and''; and
            (2) by adding at the end the following new paragraph:
            ``(26) environmental cleanup and economic development 
        activities related to Brownfields projects in conjunction with 
        the appropriate environmental regulatory agencies.''.

SEC. 406. INCOME ELIGIBILITY.

    (a) In General.--In addition to the exceptions granted pursuant to 
section 590 of the Quality Housing and Work Responsibility Act of 1998 
(42 U.S.C. 5301 note), the Secretary of Housing and Urban Development 
shall, for not less than 10 other jurisdictions that are metropolitan 
cities or urban counties for purposes of title I of the Housing and 
Community Development Act of 1974, grant exceptions not later than 90 
days after the date of the enactment of this Act for such jurisdictions 
that provide that--
            (1) for purposes of the HOME investment partnerships 
        program under title II of the Cranston-Gonzalez National 
        Affordable Housing Act, the limitation based on percentage of 
        median income that is applicable under section 104(10), 
        214(1)(A), or 215(a)(1)(A) for any area of the jurisdiction 
        shall be the numerical percentage that is specified in such 
        section; and
            (2) for purposes of the community development block grant 
        program under title I of the Housing and Community Development 
        Act of 1974, the limitation based on percentage of median 
        income that is applicable pursuant to section 102(a)(20) for 
        any area within the State or unit of general local government 
        shall be the numerical percentage that is specified in 
        subparagraph (A) of such section.
    (b) Selection.--In selecting the jurisdictions for which to grant 
such exceptions, the Secretary shall consider the relative median 
income of such jurisdictions and shall give preference to jurisdictions 
with the highest housing costs.

SEC. 407. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

    Section 863 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12912) is amended to read as follows:

``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this subtitle 
$260,000,000 for fiscal year 2001 and such sums as may be necessary for 
each of fiscal years 2002, 2003, 2004, and 2005.''.

             TITLE V--HOME INVESTMENT PARTNERSHIPS PROGRAM

SEC. 501. REAUTHORIZATION.

    (a) Authorization of Appropriations.--Section 205 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12724) is amended 
to read as follows:

``SEC. 205. AUTHORIZATION.

    ``(a) In General.--There is authorized to be appropriated to carry 
out this title $1,650,000,000 for fiscal year 2001 and such sums as may 
be necessary for each of fiscal years 2002, 2003, 2004, and 2005, of 
which--
            ``(1) not more than $25,000,000 in each such fiscal year 
        shall be for community housing partnership activities 
        authorized under section 233; and
            ``(2) not more than $15,000,000 in each such fiscal year 
        shall be for activities in support of State and local housing 
        strategies authorized under subtitle C, of which, in each of 
        fiscal years 2001 and 2002, $3,000,000 shall be for funding 
        grants under section 246.
    ``(b) Prohibition of Set-Asides.--Except as provided in subsection 
(a) of this section and section 217(a)(3), amounts appropriated 
pursuant to subsection (a) of this section or otherwise to carry out 
this title shall be used only for formula-based grants allocated 
pursuant to section 217 and may not be otherwise used unless the 
provision of law providing for such other use specifically refers to 
this subsection and specifically states that such provision modifies or 
supersedes the provisions of this subsection.''.
    (b) Allocations of Amounts.--Section 104(19) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12704(19)) is 
amended by adding at the end the following: ``The term `city' shall 
have the meaning given such term in section 102(a)(5)(B) of such Act. A 
town or township that is classified as a city by reason of subclause 
(II) of section 102(a)(5)(A)(B)(iii) of such Act shall be treated, 
notwithstanding section 102(d)(1) of such Act, as an entity separate 
from the urban county in which it is located for purposes of allocation 
of amounts under section 217 of this Act to units of general local 
government from amounts made available for any fiscal year beginning 
after the date of the enactment of the American Homeownership and 
Economic Opportunity Act of 2000.''.
    (c) Pilot Program for Developing Regional Housing Strategies.--
Subtitle C of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12781 et seq.) is amended by adding at the end 
the following new section:

``SEC. 246. PILOT PROGRAM FOR DEVELOPING COMPREHENSIVE REGIONAL HOUSING 
              AFFORDABILITY STRATEGIES.

    ``(a) Authority.--The Secretary may, using any amounts made 
available for grants under this section, make not more than 3 grants 
for each of fiscal years 2001 and 2002 to consortia of units of general 
local government described in subsection (b) for costs of developing 
and implementing comprehensive housing affordability strategies on a 
regional basis.
    ``(b) Eligible Consortia.--A consortium of units of general local 
government described in this subsection is a consortium that--
            ``(1) is eligible under section 216(2) to be deemed a unit 
        of general local government for purposes of this title; and
            ``(2) consists of multiple units of general local 
        government; and
            ``(3) contains only units of general local government that 
        are geographically contiguous.
    ``(c) Multi-State Requirement.--In each fiscal year in which grants 
are made under this section, not less than one of the consortia that 
receives a grant shall be a consortium described in subsection (b) that 
includes units of general local government from 2 or more States.''.

SEC. 502. ELIGIBILITY OF LIMITED EQUITY COOPERATIVES AND MUTUAL HOUSING 
              ASSOCIATIONS.

    (a) Congressional Findings.--Section 202(10) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12721(10)) is 
amended by inserting ``mutual housing associations,'' after ``limited 
equity cooperatives,''.
    (b) Definitions.--Section 104 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12704) is amended--
            (1) by redesignating paragraph (23) as paragraph (22);
            (2) by redesignating paragraph (24) (relating to the 
        definition of ``insular area'') as paragraph (23); and
            (3) by adding at the end the following new paragraphs:
            ``(26) The term `limited equity cooperative' means a 
        cooperative housing corporation which, in a manner determined 
        by the Secretary to be acceptable, restricts income eligibility 
        of purchasers of membership shares of stock in the cooperative 
        corporation or the initial and resale price of such shares, or 
        both, so that the shares remain available and affordable to 
        low-income families.
            ``(27) The term `mutual housing association' means a 
        private entity that--
                    ``(A) is organized under State law;
                    ``(B) is described in section 501(c) of the 
                Internal Revenue Code of 1986 and exempt from taxation 
                under section 501(a) of such Code;
                    ``(C) owns, manages, and continuously develops 
                affordable housing by providing long-term housing for 
                low- and moderate-income families;
                    ``(D) provides that eligible families who purchase 
                membership interests in the association shall have a 
                right to residence in a dwelling unit in the housing 
                during the period that they hold such membership 
                interest; and
                    ``(E) provides for the residents of such housing to 
                participate in the ongoing management of the 
                housing.''.
    (c) Eligibility.--Section 215 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12745) is amended--
            (1) in subsection (b), by adding after and below paragraph 
        (4) the following:
``Housing that is owned by a limited equity cooperative or a mutual 
housing association may be considered by a participating jurisdiction 
to be housing for homeownership for purposes of this title to the 
extent that ownership or membership in such a cooperative or 
association, respectively, constitutes homeownership under State or 
local laws.''; and
            (2) in subsection (a), by adding at the end the following 
        new paragraph:
            ``(6) Limited equity cooperatives and mutual housing 
        associations.--Housing that is owned by a limited equity 
        cooperative or a mutual housing association may be considered 
        by a participating jurisdiction to be rental housing for 
        purposes of this title to the extent that ownership or 
        membership in such a cooperative or association, respectively, 
        constitutes rental of a dwelling under State or local laws.''.

SEC. 503. ADMINISTRATIVE COSTS.

    Section 212(c) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12742(c)) is amended by adding at the end the following 
new sentence: ``A participating jurisdiction may use amounts made 
available under this subsection for a fiscal year for administrative 
and planning costs by amortizing the costs of administration and 
planning activities under this subtitle over the entire duration of 
such activities.''.

SEC. 504. LEVERAGING AFFORDABLE HOUSING INVESTMENT THROUGH LOCAL LOAN 
              POOLS.

    (a) Eligible Investments.--Section 212(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(b)) is amended by 
inserting after ``interest subsidies'' the following: ``, advances to 
provide reserves for loan pools or to provide partial loan 
guarantees,''.
    (b) Timely Investment of Trust Funds.--Section 218(e) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748) is 
amended to read as follows:
    ``(e) Investment Within 15 Days.--
            ``(1) In general.--The participating jurisdiction shall, 
        not later than 15 days after funds are drawn from the 
        jurisdiction's HOME Investment Trust Fund, invest such funds, 
        together with any interest earned thereon, in the affordable 
        housing for which the funds were withdrawn.
            ``(2) Loan pools.--In the case of a participating 
        jurisdiction that withdraws Trust Fund amounts for investment 
        in the form of an advance for reserves or partial loan 
        guarantees under a program providing such credit enhancement 
        for loans for affordable housing, the amounts shall be 
        considered to be invested for purposes of paragraph (1) upon 
        the completion of both of the following actions:
                    ``(A) Control of the amounts is transferred to the 
                program.
                    ``(B) The jurisdiction and the entity operating the 
                program enter into a written agreement that--
                            ``(i) provides that such funds may be used 
                        only in connection with such program;
                            ``(ii) defines the terms and conditions of 
                        the loan pool reserve or partial loan 
                        guarantees; and
                            ``(iii) provides that such entity shall 
                        ensure that amounts from non-Federal sources 
                        have been contributed, or are committed for 
                        contribution, to the pool available for loans 
                        for affordable housing that will be backed by 
                        such reserves or loan guarantees in an amount 
                        equal to 10 times the amount invested from 
                        Trust Fund amounts.''.
    (c) Expiration of Right To Withdraw Funds.--Section 218(g) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748(g)) 
is amended to read as follows:
    ``(g) Expiration of Right To Draw Funds.--
            ``(1) In general.--If any funds becoming available to a 
        participating jurisdiction under this title are not placed 
        under binding commitment to affordable housing within 24 months 
        after the last day of the month in which such funds are 
        deposited in the jurisdiction's HOME Investment Trust Fund, the 
        jurisdiction's right to draw such funds from the HOME 
        Investment Trust Fund shall expire. The Secretary shall reduce 
        the line of credit in the participating jurisdiction's HOME 
        Investment Trust Fund by the expiring amount and shall 
        reallocate the funds by formula in accordance with section 
        217(d).
            ``(2) Loan pools.--In the case of a participating 
        jurisdiction that withdraws Trust Fund amounts for investment 
        in the manner provided under subsection (e)(2), the amounts 
        shall be considered to be placed under binding commitment to 
        affordable housing for purposes of paragraph (1) of this 
        subsection at the time that the amounts are obligated for use 
        under, and are subject to, a written agreement described in 
        subsection (e)(2)(B).''.
    (d) Treatment of Mixed Income Loan Pools as Affordable Housing.--
            (1) In general.--Section 215 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12745) is amended by 
        adding at the end the following new subsection:
    ``(c) Loan Pools.--Notwithstanding subsections (a) and (b), housing 
financed using amounts invested as provided in section 218(e)(2) shall 
qualify as affordable housing only if the housing complies with the 
following requirements:
            ``(1) In the case of housing that is for homeownership--
                    ``(A) of the units financed with amounts so 
                invested--
                            ``(i) not less than 75 percent are 
                        principal residences of owners whose families 
                        qualify as low-income families--
                                    ``(I) in the case of a contract to 
                                purchase existing housing, at the time 
                                of purchase;
                                    ``(II) in the case of a lease-
                                purchase agreement for existing housing 
                                or for housing to be constructed, at 
                                the time the agreement is signed; or
                                    ``(III) in the case of a contract 
                                to purchase housing to be constructed, 
                                at the time the contract is signed;
                            ``(ii) all are principal residences of 
                        owners whose families qualify as moderate-
                        income families--
                                    ``(I) in the case of a contract to 
                                purchase existing housing, at the time 
                                of purchase;
                                    ``(II) in the case of a lease-
                                purchase agreement for existing housing 
                                or for housing to be constructed, at 
                                the time the agreement is signed; or
                                    ``(III) in the case of a contract 
                                to purchase housing to be constructed, 
                                at the time the contract is signed; and
                            ``(iii) all comply with paragraphs (3) and 
                        (4) of subsection (b), except that paragraph 
                        (3) shall be applied for purposes of this 
                        clause by substituting `subsection (c)(2)(B)' 
                        and `low- and moderate-income homebuyers' for 
                        `paragraph (2)' and `low-income homebuyers', 
                        respectively; and
                    ``(B) units made available for purchase only by 
                families who qualify as low-income families shall have 
                an initial purchase price that complies with the 
                requirements of subsection (b)(1).
            ``(2) In the case of housing that is for rental, the 
        housing--
                    ``(A) complies with subparagraphs (D) through (F) 
                of subsection (a)(1);
                    ``(B)(i) has not less than 75 percent of the units 
                occupied by households that qualify as low-income 
                families and is occupied only by households that 
                qualify as moderate-income families; or
                    ``(ii) temporarily fails to comply with clause (i) 
                only because of increases in the incomes of existing 
                tenants and actions satisfactory to the Secretary are 
                being taken to ensure that all vacancies in the housing 
                are being filled in accordance with clause (i) until 
                such noncompliance is corrected; and
                    ``(C) bears rents, in the case of units made 
                available for occupancy only by households that qualify 
                as low-income families, that comply with the 
                requirements of subsection (a)(1)(A).
        Paragraphs (4) and (5) of subsection (a) shall apply to housing 
        that is subject to this subsection.''.
            (2) Definition.--Section 104 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12704), as amended 
        by section 502 of this Act, is further amended by adding at the 
        end the following new paragraph:
            ``(28) The term `moderate income families' means families 
        whose incomes do not exceed the median income for the area, as 
        determined by the Secretary with adjustments for smaller and 
        larger families, except that the Secretary may establish income 
        ceilings higher or lower than the median income for the area on 
        the basis of the Secretary's findings that such variations are 
        necessary because of prevailing levels of construction costs or 
        fair market rents, or unusually high or low family incomes.''.

SEC. 505. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

    (a) Eligible Activities.--Paragraph (2) of section 215(b) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12745(b)(2)) is amended to read as follows:
            ``(2) is the principal residence of an owner who--
                    ``(A) is a member of a family that qualifies as a 
                low-income family--
                            ``(i) in the case of a contract to purchase 
                        existing housing, at the time of purchase;
                            ``(ii) in the case of a lease-purchase 
                        agreement for existing housing or for housing 
                        to be constructed, at the time the agreement is 
                        signed; or
                            ``(iii) in the case of a contract to 
                        purchase housing to be constructed, at the time 
                        the contract is signed; or
                    ``(B)(i) is a uniformed employee (which shall 
                include policemen, firemen, and sanitation and other 
                maintenance workers) or a teacher who is an employee, 
                of the participating jurisdiction (or an agency or 
                school district serving such jurisdiction) that is 
                investing funds made available under this subtitle to 
                support homeownership of the residence; and
                    ``(ii) is a member of a family whose income, at the 
                time referred to in clause (i), (ii), or (iii) of 
                subparagraph (A), as appropriate, and as determined by 
                the Secretary with adjustments for smaller and larger 
                families, does not exceed 115 percent of the median 
                income of the area, except that, with respect only to 
                such areas that the Secretary determines have high 
                housing costs, taking into consideration median house 
                prices and median family incomes for the area, such 
                income limitation shall be 150 percent of the median 
                income of the area, as determined by the Secretary with 
                adjustments for smaller and larger families;''.
    (b) Income Targeting.--Section 214(2) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12744(2)) is amended by 
inserting before the semicolon the following: ``or families described 
in section 215(b)(2)(B)''.
    (c) Eligible Investments.--Section 212(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12742(b)) is amended by 
adding at the end the following new sentence: ``Notwithstanding the 
preceding sentence, in the case of homeownership assistance for 
residences of owners described in section 215(b)(2)(B), funds made 
available under this subtitle may only be invested (A) to provide 
amounts for downpayments on mortgages, (B) to pay reasonable closing 
costs normally associated with the purchase of a residence, (C) to 
obtain pre- or post-purchase counseling relating to the financial and 
other obligations of homeownership, or (D) to subsidize mortgage 
interest rates.''.

SEC. 506. USE OF SECTION 8 ASSISTANCE BY ``GRAND-FAMILIES'' TO RENT 
              DWELLING UNITS IN ASSISTED PROJECTS.

    Section 215(a) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12745(a)), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
paragraph:
            ``(7) Waiver of qualifying rent.--
                    ``(A) In general.--For the purpose of providing 
                affordable housing appropriate for families described 
                in subparagraph (B), the Secretary may, upon the 
                application of the project owner, waive the 
                applicability of subparagraph (A) of paragraph (1) with 
                respect to a dwelling unit if--
                            ``(i) the unit is occupied by such a 
                        family, on whose behalf tenant-based assistance 
                        is provided under section 8 of the United 
                        States Housing Act of 1937 (42 U.S.C. 1437f);
                            ``(ii) the rent for the unit is not greater 
                        than the existing fair market rent for 
                        comparable units in the area, as established by 
                        the Secretary under section 8 of the United 
                        States Housing Act of 1937; and
                            ``(iii) the Secretary determines that the 
                        waiver, together with waivers under this 
                        paragraph for other dwelling units in the 
                        project, will result in the use of amounts 
                        described in clause (iii) in an effective 
                        manner that will improve the provision of 
                        affordable housing for such families.
                    ``(B) Eligible families.--A family described in 
                this subparagraph is a family that consists of at least 
                one elderly person (who is the head of household) and 
                one or more of such person's grand children, great 
                grandchildren, great nieces, great nephews, or great 
                great grandchildren (as defined by the Secretary), but 
                does not include any parent of such grandchildren, 
                great grandchildren, great nieces, great nephews, or 
                great great grandchildren. Such term includes any such 
                grandchildren, great grandchildren, great nieces, great 
                nephews, or great great grandchildren who have been 
                legally adopted by such elderly person.''.

SEC. 507. LOAN GUARANTEES.

    Subtitle A of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12741 et seq.) is amended by adding at the end 
the following new section:

``SEC. 227. LOAN GUARANTEES.

    ``(a) Authority.--The Secretary may, upon such terms and conditions 
as the Secretary may prescribe, guarantee and make commitments to 
guarantee, only to such extent or in such amounts as provided in 
appropriations Acts, the notes or other obligations issued by 
eligible participating jurisdictions or by public agencies designated 
by and acting on behalf of eligible participating jurisdictions for 
purposes of financing (including credit enhancements and debt service 
reserves) the acquisition, new construction, reconstruction, or 
moderate or substantial rehabilitation of affordable housing (including 
real property acquisition, site improvement, conversion, and 
demolition), and other related expenses (including financing costs and 
relocation expenses of any displaced persons, families, businesses, or 
organizations). Housing funded under this section shall meet the 
requirements of this subtitle.
    ``(b) Requirements.--Notes or other obligations guaranteed under 
this section shall be in such form and denominations, have such 
maturities, and be subject to such conditions as may be prescribed by 
the Secretary. The Secretary may not deny a guarantee under this 
section on the basis of the proposed repayment period for the note or 
other obligation, unless the period is more than 20 years or the 
Secretary determines that the period otherwise causes the guarantee to 
constitute an unacceptable financial risk.
    ``(c) Limitation on Total Notes and Obligations.--The Secretary may 
not guarantee or make a commitment to guarantee any note or other 
obligation if the total outstanding notes or obligations guaranteed 
under this section on behalf of the participating jurisdiction issuing 
the note or obligation (excluding any amount defeased under a contract 
entered into under subsection (e)(1)) would thereby exceed an amount 
equal to 5 times the amount of the participating jurisdiction's latest 
allocation under section 217.
    ``(d) Use of Program Funds.--Notwithstanding any other provision of 
this subtitle, funds allocated to the participating jurisdiction under 
this subtitle (including program income derived therefrom) are 
authorized for use in the payment of principal and interest due on the 
notes or other obligations guaranteed pursuant to this section and the 
payment of such servicing, underwriting, or other issuance or 
collection charges as may be specified by the Secretary.
    ``(e) Security.--To assure the full repayment of notes or other 
obligations guaranteed under this section, and payment of the issuance 
or collection charges specified by the Secretary under subsection (d), 
and as a prior condition for receiving such guarantees, the Secretary 
shall require the participating jurisdiction (and its designated public 
agency issuer, if any) to--
            ``(1) enter into a contract, in a form acceptable to the 
        Secretary, for repayment of such notes or other obligations and 
        the other specified charges;
            ``(2) pledge as security for such repayment any allocation 
        for which the participating jurisdiction may become eligible 
        under this subtitle; and
            ``(3) furnish, at the discretion of the Secretary, such 
        other security as may be deemed appropriate by the Secretary in 
        making such guarantees, which may include increments in local 
        tax receipts generated by the housing assisted under this 
        section or disposition proceeds from the sale of land or 
        housing.
    ``(f) Repayment Authority.--The Secretary may, notwithstanding any 
other provision of this subtitle or any other Federal, State, or local 
law, apply allocations pledged pursuant to subsection (e) to any 
repayments due the United States as a result of such guarantees.
    ``(g) Full Faith and Credit.--The full faith and credit of the 
United States is pledged to the payment of all guarantees made under 
this section. Any such guarantee made by the Secretary shall be 
conclusive evidence of the eligibility of the notes or other 
obligations for such guarantee with respect to principal and interest, 
and the validity of any such guarantee so made shall be incontestable 
in the hands of a holder of the guaranteed obligations.
    ``(h) Tax Status.--With respect to any obligation guaranteed 
pursuant to this section, the guarantee and the obligation shall be 
designed in a manner such that the interest paid on such obligation 
shall be included in gross income for purposes of the Internal Revenue 
Code of 1986.
    ``(i) Monitoring.--The Secretary shall monitor the use of 
guarantees under this section by eligible participating jurisdictions. 
If the Secretary finds that 50 percent of the aggregate guarantee 
authority for any fiscal year has been committed, the Secretary may 
impose limitations on the amount of guarantees any 1 participating 
jurisdiction may receive during that fiscal year.
    ``(j) Guarantee of Trust Certificates.--
            ``(1) Authority.--The Secretary may, upon such terms and 
        conditions as the Secretary deems appropriate, guarantee the 
        timely payment of the principal of and interest on such trust 
        certificates or other obligations as may--
                    ``(A) be offered by the Secretary or by any other 
                offeror approved for purposes of this subsection by the 
                Secretary; and
                    ``(B) be based on and backed by a trust or pool 
                composed of notes or other obligations guaranteed or 
                eligible for guarantee by the Secretary under this 
                section.
            ``(2) Full faith and credit.--To the same extent as 
        provided in subsection (g), the full faith and credit of the 
        United States is pledged to the payment of all amounts which 
        may be required to be paid under any guarantee by the Secretary 
        under this subsection.
            ``(3) Subrogation.--In the event the Secretary pays a claim 
        under a guarantee issued under this section, the Secretary 
        shall be subrogated fully to the rights satisfied by such 
        payment.
            ``(4) Other powers and rights.--No State or local law, and 
        no Federal law, shall preclude or limit the exercise by the 
        Secretary of--
                    ``(A) the power to contract with respect to public 
                offerings and other sales of notes, trust certificates, 
                and other obligations guaranteed under this section, 
                upon such terms and conditions as the Secretary deems 
                appropriate;
                    ``(B) the right to enforce, by any means deemed 
                appropriate by the Secretary, any such contract; and
                    ``(C) the Secretary's ownership rights, as 
                applicable, in notes, certificates or other obligations 
                guaranteed under this section, or constituting the 
                trust or pool against which trust certificates or other 
                obligations guaranteed under this section are offered.
    ``(k) Aggregate Limitation.--The total amount of outstanding 
obligations guaranteed on a cumulative basis by the Secretary under 
this section shall not at any time exceed $2,000,000,000.''.

SEC. 508. DOWNPAYMENT ASSISTANCE FOR 2- AND 3-FAMILY RESIDENCES.

    (a) Authority.--The Secretary of Housing and Urban Development 
shall carry out a pilot program under this section under which covered 
jurisdictions may use amounts described in subsection (b) to make loans 
to eligible homebuyers for use as downpayments on 2- and 3-family 
residences.
    (b) Covered Assistance.--Notwithstanding section 105 of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5305) and section 212 
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12742), a covered jurisdiction may use amounts provided to the 
jurisdiction pursuant to section 106(b) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5406(b)) and amounts in the HOME 
Investment Trust Fund for the jurisdiction for downpayment loans 
meeting the requirements of subsection (d) to homebuyers meeting the 
requirements of subsection (c), but only to the extent such 
jurisdictions agree to comply with the requirements of this section, as 
the Secretary may require.
    (c) Eligible Homebuyers.--A homebuyer meets the requirements of 
this subsection only if the homebuyer is an individual or family--
            (1) whose income does not exceed 80 percent of the median 
        family income for the area within which the residence to be 
        purchased with the downpayment loan under subsection (d) is 
        located; except that the Secretary may, pursuant to a request 
        by a covered jurisdiction demonstrating that the jurisdiction 
        has high housing costs (taking into consideration median home 
        prices and median family incomes for the area), increase the 
        percentage limitation under this paragraph to not more than 110 
        percent of the median family income for the area;
            (2) who has successfully completed a program regarding the 
        responsibilities and financial management involved in 
        homeownership and ownership of rental property that is approved 
        by the Secretary;
            (3) has a satisfactory credit history and record as a 
        tenant of rental housing; and
            (4) who, if such individual or family has an income that 
        exceeds 80 percent of the median income for the area, enters 
        into a binding agreement to comply with the requirements under 
        subsection (e) (relating to affordability of other dwelling 
        units in the residence).
    (d) No-Interest Downpayment Loans.--A loan meets the requirements 
of this subsection only if--
            (1) the principal obligation of the loan--
                    (A) may be used only for a downpayment for 
                acquisition of a 2- or 3-family residence and for 
                closing costs and other costs payable at the time of 
                closing, as the Secretary shall provide; and
                    (B) does not exceed the amount that is equal to the 
                sum of (i) 7 percent of the purchase price of the 
                residence, and (ii) such closing and other costs;
            (2) the borrower under the loan is paying, for acquisition 
        of the residence, at least 3 percent of the cost of acquisition 
        of the residence in cash or its equivalent;
            (3) the borrower under the loan will occupy a dwelling unit 
        in the residence purchased using the loan as the principal 
        residence of the borrower;
            (4) the loan terms--
                    (A) do not require the borrower to be pre-qualified 
                for a loan that finances the remainder of the purchase 
                price of a residence described in paragraph (1)(A); and
                    (B) provide that the proceeds of the loan are 
                available for use (as provided in paragraph (1)) only 
                during the 4-month period beginning upon the making of 
                the loan to the borrower and that such proceeds shall 
                revert to the covered jurisdiction upon the conclusion 
                of such period if the borrower has not entered into a 
                contract for purchase of a residence meeting the 
                requirements of such paragraph before such conclusion, 
                except that the Secretary shall provide that covered 
                jurisdictions may extend such 4-month period under such 
                circumstances as the Secretary shall prescribe;
            (5) the loan terms provide for repayment of the principal 
        obligation of the loan, without interest, at such time as the 
        covered jurisdiction may provide, except that the principal 
        obligation shall be immediately repayable at the time that the 
        borrower--
                    (A) transfers or sells the borrower's ownership 
                interest in such residence or ceases to use the 
                residence purchased with the loan proceeds as his or 
                her principal residence; or
                    (B) obtains a subsequent loan secured by such 
                residence or any equity of the borrower in such 
                residence, the proceeds of which are not used to prepay 
                or pay off the entire balance due on the existing loan 
                secured by such residence; or
            (6) the loan terms provide that, upon sale of the residence 
        purchased with the proceeds of the loan, the borrower shall 
        repay to the covered jurisdiction (together with the principal 
        obligation of the loan repayable pursuant to paragraph (5)(A)) 
        an additional amount that bears the same ratio to any increase 
        in the price of the residence upon such sale (compared to the 
        price paid for the residence upon purchase using such loan) as 
        the amount of the loan bears to the purchase price paid for the 
        residence in the purchase using such loan; and
            (7) the loan complies with such other requirements as the 
        Secretary may prescribe.
    (e) Affordability of Rental Units.--Any dwelling units in the 
residence purchased using a loan provided pursuant to the authority 
under this section to a borrower described in subsection (c)(4) of this 
section shall be used only as rental dwelling units and shall be made 
available for rental only at a monthly rental price that does not 
exceed the fair market rent under section 8(c)(2)(A) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)), as periodically 
adjusted, for a unit of the applicable size located in the area in 
which the residence is located. Compliance with this subsection shall 
be monitored and enforced by the covered jurisdiction providing the 
amounts for the downpayment loan under this section for the purchase of 
such residence.
    (f) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Covered jurisdiction.--The term ``covered 
        jurisdiction'' means, with respect to a fiscal year--
                    (A) a metropolitan city or urban county that 
                receives a grant for such fiscal year pursuant to 
                section 106(b) of the Housing and Community Development 
                Act of 1974 (42 U.S.C. 5306(b)); or
                    (B) a jurisdiction that is a participating 
                jurisdiction for such fiscal year for purposes of the 
                HOME Investment Partnerships Act (42 U.S.C. 12721 et 
                seq.).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

               TITLE VI--LOCAL HOMEOWNERSHIP INITIATIVES

SEC. 601. REAUTHORIZATION OF NEIGHBORHOOD REINVESTMENT CORPORATION.

    Section 608(a)(1) of the Neighborhood Reinvestment Corporation Act 
(42 U.S.C. 8107(a)(1)) is amended by striking the first sentence and 
inserting the following: ``There is authorized to be appropriated to 
the corporation to carry out this title $95,000,000 for fiscal year 
2001 and such sums as may be necessary for each of fiscal years 2002 
through 2005. Of the amounts appropriated to the corporation for fiscal 
year 2001, $5,000,000 shall be available only for the corporation to 
provide assistance under duplex homeownership programs established 
before the date of the enactment of the American Homeownership and 
Economic Opportunity Act of 2000 through Neighborworks Homeownership 
Center pilot projects established before such date of enactment.''.

SEC. 602. HOMEOWNERSHIP ZONES.

    Section 186 of the Housing and Community Development Act of 1992 
(42 U.S.C. 12898a) is amended to read as follows:

``SEC. 186. HOMEOWNERSHIP ZONE GRANTS.

    ``(a) Authority.--The Secretary of Housing and Urban Development 
may make grants to units of general local government to assist 
homeownership zones. Homeownership zones are contiguous, geographically 
defined areas, primarily residential in nature, in which large-scale 
development projects are designed to reclaim distressed neighborhoods 
by creating homeownership opportunities for low- and moderate-income 
families. Projects in homeownership zones are intended to serve as a 
catalyst for private investment, business creation, and neighborhood 
revitalization.
    ``(b) Eligible Activities.--Amounts made available under this 
section may be used for projects that include any of the following 
activities in the homeownership zone:
            ``(1) Acquisition, construction, and rehabilitation of 
        housing.
            ``(2) Site acquisition and preparation, including 
        demolition, construction, reconstruction, or installation of 
        public and other site improvements and utilities directly 
        related to the homeownership zone.
            ``(3) Direct financial assistance to homebuyers.
            ``(4) Homeownership counseling.
            ``(5) Relocation assistance.
            ``(6) Marketing costs, including affirmative marketing 
        activities.
            ``(7) Other project-related costs.
            ``(8) Reasonable administrative costs (up to 5 percent of 
        the grant amount).
            ``(9) Other housing-related activities proposed by the 
        applicant as essential to the success of the homeownership zone 
        and approved by the Secretary.
    ``(c) Application.--To be eligible for a grant under this section, 
a unit of general local government shall submit an application for a 
homeownership zone grant in such form and in accordance with such 
procedures as the Secretary shall establish.
    ``(d) Selection Criteria.--The Secretary shall select applications 
for funding under this section through a national competition, using 
selection criteria established by the Secretary, which shall include--
            ``(1) the degree to which the proposed activities will 
        result in the improvement of the economic, social, and physical 
        aspects of the neighborhood and the lives of its residents 
        through the creation of new homeownership opportunities;
            ``(2) the levels of distress in the homeownership zone as a 
        whole, and in the immediate neighborhood of the project for 
        which assistance is requested;
            ``(3) the financial soundness of the plan for financing 
        homeownership zone activities;
            ``(4) the leveraging of other resources; and
            ``(5) the capacity to successfully carry out the plan.
    ``(e) Grant Approval Amounts.--The Secretary may establish a 
maximum amount for any grant for any funding round under this section. 
A grant may not be made in an amount that exceeds the amount that the 
Secretary determines is necessary to fund the project for which the 
application is made.
    ``(f) Program Requirements.--A homeownership zone proposal shall--
            ``(1) provide for a significant number of new homeownership 
        opportunities that will make a visible improvement in an 
        immediate neighborhood;
            ``(2) not be inconsistent with such planning and design 
        principles as may be prescribed by the Secretary;
            ``(3) be designed to stimulate additional investment in 
        that area;
            ``(4) provide for partnerships with persons or entities in 
        the private and nonprofit sectors;
            ``(5) incorporate a comprehensive approach to 
        revitalization of the neighborhood;
            ``(6) establish a detailed time-line for commencement and 
        completion of construction activities; and
            ``(7) provide for affirmatively furthering fair housing.
    ``(g) Income Targeting.--At least 51 percent of the homebuyers 
assisted with funds under this section shall have household incomes at 
or below 80 percent of median income for the area, as determined by the 
Secretary.
    ``(h) Environmental Review.--For purposes of environmental review, 
decisionmaking, and action pursuant to the National Environmental 
Policy Act of 1969 and other provisions of law that further the 
purposes of such Act, a grant under this section shall be treated as 
assistance under the HOME Investment Partnerships Act and shall be 
subject to the regulations issued by the Secretary to implement section 
288 of such Act.
    ``(i) Review, Audit, and Reporting.--The Secretary shall make such 
reviews and audits and establish such reporting requirements as may be 
necessary or appropriate to determine whether the grantee has carried 
out its activities in a timely manner and in accordance with the 
requirements of this section. The Secretary may adjust, reduce, or 
withdraw amounts made available, or take other action as appropriate, 
in accordance with the Secretary's performance reviews and audits under 
this section.
    ``(j) Authorization.--There is authorized to be appropriated to 
carry out this section $25,000,000 for fiscal year 2001 and such sums 
as may be necessary for fiscal year 2002, to remain available until 
expended.''.

SEC. 603. LEASE-TO-OWN.

    (a) Sense of Congress.--It is the sense of the Congress that 
residential tenancies under lease-to-own provisions can facilitate 
homeownership by low- and moderate-income families and provide 
opportunities for homeownership for such families who might not 
otherwise be able to afford homeownership.
    (b) Report.--Not later than the expiration of the 3-month period 
beginning on the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall submit a report to the Congress--
            (1) analyzing whether lease-to-own provisions can be 
        effectively incorporated within the HOME investment 
        partnerships program, the public housing program, the tenant-
        based rental assistance program under section 8 of the United 
        States Housing Act of 1937, or any other programs of the 
        Department to facilitate homeownership by low- or moderate-
        income families; and
            (2) any legislative or administrative changes necessary to 
        alter or amend such programs to allow the use of lease-to-own 
        options to provide homeownership opportunities.

SEC. 604. LOCAL CAPACITY BUILDING.

    Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 
note) is amended--
            (1) in subsection (a), by inserting ``National Association 
        of Housing Partnerships,'' after ``Humanity,''; and
            (2) in subsection (e), by striking ``$25,000,000'' and all 
        that follows and inserting ``, for each fiscal year, such sums 
        as may be necessary to carry out this section.''.

SEC. 605. CONSOLIDATED APPLICATION AND PLANNING REQUIREMENT AND SUPER-
              NOFA.

    (a) Consolidated Application.--Section 106 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12706) is amended to read as 
follows:

``SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY PLANNING AND 
              DEVELOPMENT PROGRAMS.

    ``(a) Requirement.--The Secretary shall, by regulation, provide for 
jurisdictions to comply with the planning and application requirements 
under the covered programs under subsection (b) by submitting to the 
Secretary, for a program year, a single consolidated submission under 
this section that complies with the requirements for planning and 
application submissions under the laws relating to the covered programs 
and shall serve, for the jurisdiction, as the planning document and an 
application for funding under the covered programs.
    ``(b) Covered programs.--The covered programs under this subsection 
are the following programs:
            ``(1) The HOME investment partnerships program under title 
        II of this Act (42 U.S.C. 12721 et seq.).
            ``(2) The community development block grant program under 
        title I of the Housing and Community Development Act of 1974 
        (42 U.S.C. 5301 et seq.).
            ``(3) The economic development initiative program under 
        section 108(q) of the Housing and Community Development Act of 
        1974 (42 U.S.C. 5308(q)).
            ``(4) The emergency shelter grants program under subtitle B 
        of title IV of the Stewart B. McKinney Homeless Assistance Act 
        (42 U.S.C. 11371 et seq.).
            ``(5) The housing opportunities for persons with AIDS 
        program under subtitle D of title VIII of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12901 et seq.).
    ``(c) Program Year.--In establishing requirements for a 
consolidated submission under this section, the Secretary shall provide 
for a consolidated program year, which shall comply with the various 
application and review deadlines under the covered programs.
    ``(d) Adequacy of Existing Regulations.--The regulations of the 
Secretary relating to consolidated submissions for community planning 
and development programs, part 91 of title 24, Code of Federal 
Regulations, as in effect on March 1, 1999, shall be considered to be 
sufficient to comply with this section, except to the extent that the 
program referred to in paragraph (3) of subsection (b) is not covered 
by such regulations.
    ``(e) Consistency.--The Secretary shall, by regulation or 
otherwise, as deemed by the Secretary to be appropriate, require any 
application for housing assistance under title II of this Act, 
assistance under the Housing and Community Development Act of 1974, or 
assistance under the Stewart B. McKinney Homeless Assistance Act, to 
contain or be accompanied by a certification by an appropriate State or 
local public official that the proposed housing activities are 
consistent with the housing strategy of the jurisdiction to be 
served.''.
    (b) Super-NOFA.--The Department of Housing and Urban Development 
Act is amended by inserting after section 12 (42 U.S.C. 3537a) the 
following new section:

``SEC. 13. NOTICE OF FUNDING AVAILABILITY.

    ``(a) Requirement.--In making amounts for a fiscal year under the 
covered programs under subsection (b) available to applicants, the 
Secretary shall issue a consolidated notice of funding availability 
that--
            ``(1) applies to as many of the covered programs as the 
        Secretary determines is practicable;
            ``(2) simplifies the application process for funding under 
        such programs by providing for application under various 
        covered programs through a single, unified application;
            ``(3) promotes comprehensive approaches to housing and 
        community development by providing for applicants to identify 
        coordination of efforts under various covered programs; and
            ``(4) clearly informs prospective applicants of the general 
        and specific requirements under law for applying for funding 
        under such programs.
    ``(b) Covered Programs.--The covered programs under this subsection 
are the programs that are administered by the Secretary and identified 
by the Secretary for purposes of this section, in the following areas:
            ``(1) Housing and community development programs.
            ``(2) Economic development and empowerment programs.
            ``(3) Targeted housing assistance and homeless assistance 
        programs.''.

SEC. 606. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

    (a) Reauthorization.--Subsection (p) of section 11 of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended to read as follows:
    ``(p) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for fiscal year 2001 
and such sums as may be necessary for each of fiscal years 2002 and 
2003.''.
    (b) Eligible Expenses.--Section 11(d)(2)(A) of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended by inserting before the period at the end the following: ``, 
which may include reimbursing an organization, consortium, or 
affiliate, upon approval of any required environmental review, for 
nongrant amounts of the organization, consortium, or affiliate advanced 
before such review to acquire land''.
    (c) Deadline for Recapture of Funds.--Section 11 of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended--
            (1) in subsection (i)(5)--
                    (A) by striking ``if the organization or consortia 
                has not used any grant amounts'' and inserting ``the 
                Secretary shall recapture any grant amounts provided to 
                the organization or consortia that are not used'';
                    (B) by striking ``(or,'' and inserting ``, except 
                that such period shall be 36 months''; and
                    (C) by striking ``within 36 months), the Secretary 
                shall recapture such unused amounts'' and inserting 
                ``and in the case of a grant amounts provided to a 
                local affiliate of the organization or consortia that 
                is developing 5 or more dwellings in connection with 
                such grant amounts''; and
            (2) in subsection (j), by inserting after ``carry out this 
        section'' the following: ``and grant amounts provided to a 
        local affiliate of the organization or consortia that is 
        developing 5 or more dwellings in connection with such grant 
        amounts''.
    (d) Technical Corrections.--Section 11 of the Housing Opportunity 
Program Extension Act of 1996 (42 U.S.C. 12805 note) is amended--
            (1) in subsection (b)(4), by striking ``Habitat for 
        Humanity International, its affiliates, and other''; and
            (2) in subsection (e)(2), by striking ``consoria'' and 
        inserting ``consortia''.

SEC. 607. HOUSING COUNSELING ORGANIZATIONS.

    Section 106 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x) is amended--
            (1) in subsection (a)(1)(ii), by inserting ``and 
        cooperative housing'' before the semicolon at the end; and
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(C) to the National Cooperative Bank Development 
                Corporation--
                            ``(i) to provide homeownership counseling 
                        to eligible homeowners that is specifically 
                        designed to relate to ownership under 
                        cooperative housing arrangements; and
                            ``(ii) to assist in the establishment and 
                        operation of well-managed and viable 
                        cooperative housing boards.'';
                    (B) in paragraph (4)(A), by inserting before the 
                semicolon at the end the following: ``or, in the case 
                of a home loan made to finance the purchase of stock or 
                membership in a cooperative ownership housing 
                corporation, by the stock or membership interest''; and
                    (C) in paragraph (6)(C), by adding before the 
                period at the end the following: ``and includes a loan 
                that is secured by a first lien given in accordance 
                with the laws of the State where the property is 
                located and that is made to finance the purchase of 
                stock or membership in a cooperative ownership housing 
                corporation the permanent occupancy of dwelling units 
                of which is restricted to members of such corporation, 
                where the purchase of such stock or membership will 
                entitle the purchaser to the permanent occupancy of 1 
                of such units''.

SEC. 608. COMMUNITY LEAD INFORMATION CENTERS AND LEAD-SAFE HOUSING.

    Section 1011(e) of the Residential Lead-Based Paint Hazard 
Reduction Act of 1992 (42 U.S.C. 4852(e)) is amended--
            (1) in paragraph (7), by inserting ``, which may include 
        leasing of lead-safe temporary housing'' before the semicolon 
        at the end;
            (2) in paragraph (9), by striking ``and'' at the end;
            (3) by redesignating paragraph (10) as paragraph (11); and
            (4) by inserting after paragraph (9) the following new 
        paragraph:
            ``(10) provide accessible information through centralized 
        locations that provide a variety of residential lead-based 
        paint poisoning prevention services to the community that such 
        services are intended to benefit; and''.

            TITLE VII--NATIVE AMERICAN HOUSING HOMEOWNERSHIP

SEC. 701. LANDS TITLE REPORT COMMISSION.

    (a) Establishment.--Subject to sums being provided in advance in 
appropriations Acts, there is established a Commission to be known as 
the Lands Title Report Commission (hereafter in this section referred 
to as the ``Commission'') to facilitate home loan mortgages on Indian 
trust lands. The Commission will be subject to oversight by the 
Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate.
    (b) Membership.--
            (1) Appointment.--The Commission shall be composed of 12 
        members, appointed not later than 90 days after the date of the 
        enactment of this Act as follows:
                    (A) 4 members shall be appointed by the President.
                    (B) 4 members shall be appointed by the Chairperson 
                of the Committee on Banking and Financial Services of 
                the House of Representatives.
                    (C) 4 members shall be appointed by the Chairperson 
                of the Committee on Banking, Housing, and Urban Affairs 
                of the Senate.
            (2) Qualifications.--
                    (A) Members of tribes.--At all times, not less than 
                8 of the members of the Commission shall be members of 
                federally recognized Indian tribes.
                    (B) Experience in land title matters.--All members 
                of the Commission shall have experience in and 
                knowledge of land title matters relating to Indian 
                trust lands.
            (3) Chairperson.--The Chairperson of the Commission shall 
        be one of the members of the Commission appointed under 
        paragraph (1)(C), as elected by the members of the Commission.
            (4) Vacancies.--Any vacancy on the Commission shall not 
        affect its powers, but shall be filled in the manner in which 
        the original appointment was made.
            (5) Travel expenses.--Members of the Commission shall serve 
        without pay, but each member shall receive travel expenses, 
        including per diem in lieu of subsistence, in accordance with 
        sections 5702 and 5703 of title 5, United States Code.
    (c) Initial Meeting.--The Chairperson of the Commission shall call 
the initial meeting of the Commission. Such meeting shall be held 
within 30 days after the Chairperson of the Commission determines that 
sums sufficient for the Commission to carry out its duties under this 
Act have been appropriated for such purpose.
    (d) Duties.--The Commission shall analyze the system of the Bureau 
of Indian Affairs of the Department of the Interior for maintaining 
land ownership records and title documents and issuing certified title 
status reports relating to Indian trust lands and, pursuant to such 
analysis, determine how best to improve or replace the system--
            (1) to ensure prompt and accurate responses to requests for 
        title status reports;
            (2) to eliminate any backlog of requests for title status 
        reports; and
            (3) to ensure that the administration of the system will 
        not in any way impair or restrict the ability of Native 
        Americans to obtain conventional loans for purchase of 
        residences located on Indian trust lands, including any actions 
        necessary to ensure that the system will promptly be able to 
        meet future demands for certified title status reports, taking 
        into account the anticipated complexity and volume of such 
        requests.
    (e) Report.--Not later than the date of the termination of the 
Commission under subsection (h), the Commission shall submit a report 
to the Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate describing the analysis and determinations made 
pursuant to subsection (d).
    (f) Powers.--
            (1) Hearings and sessions.--The Commission may, for the 
        purpose of carrying out this section, hold hearings, sit and 
        act at times and places, take testimony, and receive evidence 
        as the Commission considers appropriate.
            (2) Staff of federal agencies.--Upon request of the 
        Commission, the head of any Federal department or agency may 
        detail, on a reimbursable basis, any of the personnel of that 
        department or agency to the Commission to assist it in carrying 
        out its duties under this section.
            (3) Obtaining official data.--The Commission may secure 
        directly from any department or agency of the United States 
        information necessary to enable it to carry out this section. 
        Upon request of the Chairperson of the Commission, the head of 
        that department or agency shall furnish that information to the 
        Commission.
            (4) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as other 
        departments and agencies of the United States.
            (5) Administrative support services.--Upon the request of 
        the Commission, the Administrator of General Services shall 
        provide to the Commission, on a reimbursable basis, the 
        administrative support services necessary for the Commission to 
        carry out its duties under this section.
            (6) Staff.--The Commission may appoint personnel as it 
        considers appropriate, subject to the provisions of title 5, 
        United States Code, governing appointments in the competitive 
        service, and shall pay such personnel in accordance with the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        that title relating to classification and General Schedule pay 
        rates.
    (g) Authorization of Appropriations.--To carry out this section, 
there is authorized to be appropriated $500,000. Such sums shall remain 
available until expended.
    (h) Termination.--The Commission shall terminate 1 year after the 
date of the initial meeting of the Commission.

SEC. 702. LOAN GUARANTEES.

    Section 184(i) of the Housing and Community Development Act of 1992 
(12 U.S.C. 1715z-13a(i)) is amended--
            (1) in paragraph (5), by striking subparagraph (C) and 
        inserting the following new subparagraph:
                    ``(C) Limitation on outstanding aggregate principal 
                amount.--Subject to the limitations in subparagraphs 
                (A) and (B), the Secretary may enter into commitments 
                to guarantee loans under this section in each fiscal 
                year with an aggregate outstanding principal amount not 
                exceeding such amount as may be provided in 
                appropriation Acts for such fiscal year.''; and
            (2) in paragraph (7), by striking ``each of fiscal years 
        1997, 1998, 1999, 2000, and 2001'' and inserting ``each fiscal 
        year''.

SEC. 703. NATIVE AMERICAN HOUSING ASSISTANCE.

    (a) Restriction on Waiver Authority.--
            (1) In general.--Section 101(b)(2) of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4111(b)(2)) is amended by striking ``if the Secretary'' 
        and all that follows through the period at the end and 
        inserting the following: ``for a period of not more than 90 
        days, if the Secretary determines that an Indian tribe has not 
        complied with, or is unable to comply with, those requirements 
        due to exigent circumstances beyond the control of the Indian 
        tribe.''.
            (2) Local cooperation agreement.--Section 101(c) of the 
        Native American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4111(c)) is amended by adding at the end the 
        following: ``The Secretary may waive the requirements of this 
        subsection and subsection (d) if the recipient has made a good 
        faith effort to fulfill the requirements of this subsection and 
        subsection (d) and agrees to make payments in lieu of taxes to 
        the appropriate taxing authority in an amount consistent with 
        the requirements of subsection (d)(2) until such time as the 
        matter of making such payments has been resolved in accordance 
        with subsection (d).''.
    (b) Assistance to Families That Are Not Low-Income.--Section 102(c) 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4112(c)) is amended by adding at the end the following:
            ``(6) Certain families.--With respect to assistance 
        provided under section 201(b)(2) by a recipient to Indian 
        families that are not low-income families, evidence that there 
        is a need for housing for each such family during that period 
        that cannot reasonably be met without such assistance.''.
    (c) Elimination of Waiver Authority for Small Tribes.--Section 102 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4112) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).
    (d) Environmental Compliance.--Section 105 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4115) 
is amended by adding at the end the following:
    ``(d) Environmental Compliance.--The Secretary may waive the 
requirements under this section if the Secretary determines that a 
failure on the part of a recipient to comply with provisions of this 
section--
            ``(1) will not frustrate the goals of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) or 
        any other provision of law that furthers the goals of that Act;
            ``(2) does not threaten the health or safety of the 
        community involved by posing an immediate or long-term hazard 
        to residents of that community;
            ``(3) is a result of inadvertent error, including an 
        incorrect or incomplete certification provided under subsection 
        (c)(1); and
            ``(4) may be corrected through the sole action of the 
        recipient.''.
    (e) Eligibility of Law Enforcement Officers for Housing 
Assistance.--Section 201(b) of the Native American Housing Assistance 
and Self-Determination Act of 1996 (25 U.S.C. 4131(b)) is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (4)'';
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively; and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Law enforcement officers.--A recipient may provide 
        housing or housing assistance provided through affordable 
        housing activities assisted with grant amounts under this Act 
        for a law enforcement officer on an Indian reservation or other 
        Indian area, if--
                    ``(A) the officer--
                            ``(i) is employed on a full-time basis by 
                        the Federal Government or a State, county, or 
                        tribal government; and
                            ``(ii) in implementing such full-time 
                        employment, is sworn to uphold, and make 
                        arrests for, violations of Federal, State, 
                        county, or tribal law; and
                    ``(B) the recipient determines that the presence of 
                the law enforcement officer on the Indian reservation 
                or other Indian area may deter crime.''.
    (f) Oversight.--
            (1) Repayment.--Section 209 of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4139) 
        is amended to read as follows:

``SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING REQUIREMENT.

    ``If a recipient uses grant amounts to provide affordable housing 
under this title, and at any time during the useful life of the housing 
the recipient does not comply with the requirement under section 
205(a)(2), the Secretary shall take appropriate action under section 
401(a).''.
            (2) Audits and reviews.--Section 405 of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4165) is amended to read as follows:

``SEC. 405. REVIEW AND AUDIT BY SECRETARY.

    ``(a) Requirements Under Chapter 75 of Title 31, United States 
Code.--An entity designated by an Indian tribe as a housing entity 
shall be treated, for purposes of chapter 75 of title 31, United States 
Code, as a non-Federal entity that is subject to the audit requirements 
that apply to non-Federal entities under that chapter.
    ``(b) Additional Reviews and Audits.--
            ``(1) In general.--In addition to any audit or review under 
        subsection (a), to the extent the Secretary determines such 
        action to be appropriate, the Secretary may conduct an audit or 
        review of a recipient in order to--
                    ``(A) determine whether the recipient--
                            ``(i) has carried out--
                                    ``(I) eligible activities in a 
                                timely manner; and
                                    ``(II) eligible activities and 
                                certification in accordance with this 
                                Act and other applicable law;
                            ``(ii) has a continuing capacity to carry 
                        out eligible activities in a timely manner; and
                            ``(iii) is in compliance with the Indian 
                        housing plan of the recipient; and
                    ``(B) verify the accuracy of information contained 
                in any performance report submitted by the recipient 
                under section 404.
            ``(2) On-site visits.--To the extent practicable, the 
        reviews and audits conducted under this subsection shall 
        include on-site visits by the appropriate official of the 
        Department of Housing and Urban Development.
    ``(c) Review of Reports.--
            ``(1) In general.--The Secretary shall provide each 
        recipient that is the subject of a report made by the Secretary 
        under this section notice that the recipient may review and 
        comment on the report during a period of not less than 30 days 
        after the date on which notice is issued under this paragraph.
            ``(2) Public availability.--After taking into consideration 
        any comments of the recipient under paragraph (1), the 
        Secretary--
                    ``(A) may revise the report; and
                    ``(B) not later than 30 days after the date on 
                which those comments are received, shall make the 
                comments and the report (with any revisions made under 
                subparagraph (A)) readily available to the public.
    ``(d) Effect of Reviews.--Subject to section 401(a), after 
reviewing the reports and audits relating to a recipient that are 
submitted to the Secretary under this section, the Secretary may adjust 
the amount of a grant made to a recipient under this Act in accordance 
with the findings of the Secretary with respect to those reports and 
audits.''.
    (g) Allocation Formula.--Section 302(d)(1) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4152(d)(1)) is amended--
            (1) by striking ``The formula,'' and inserting the 
        following:
                    ``(A) In general.--Except with respect to an Indian 
                tribe described in subparagraph (B), the formula''; and
            (2) by adding at the end the following:
                    ``(B) Certain indian tribes.--With respect to 
                fiscal year 2001 and each fiscal year thereafter, for 
                any Indian tribe with an Indian housing authority that 
                owns or operates fewer than 250 public housing units, 
                the formula shall provide that if the amount provided 
                for a fiscal year in which the total amount made 
                available for assistance under this Act is equal to or 
                greater than the amount made available for fiscal year 
                1996 for assistance for the operation and modernization 
                of the public housing referred to in subparagraph (A), 
                then the amount provided to that Indian tribe as 
                modernization assistance shall be equal to the average 
                annual amount of funds provided to the Indian tribe 
                (other than funds provided as emergency assistance) 
                under the assistance program under section 14 of the 
                United States Housing Act of 1937 (42 U.S.C. 1437l) for 
                the period beginning with fiscal year 1992 and ending 
                with fiscal year 1997.''.
    (h) Hearing Requirement.--Section 401(a) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4161(a)) is amended--
            (1) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and realigning 
        such subparagraphs (as so redesignated) so as to be indented 4 
        ems from the left margin;
            (2) by striking ``Except as provided'' and inserting the 
        following:
            ``(1) In general.--Except as provided'';
            (3) by striking ``If the Secretary takes an action under 
        paragraph (1), (2), or (3)'' and inserting the following:
            ``(2) Continuance of actions.--If the Secretary takes an 
        action under subparagraph (A), (B), or (C) of paragraph (1)''; 
        and
            (4) by adding at the end the following:
            ``(3) Exception for certain actions.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection, if the Secretary makes a 
                determination that the failure of a recipient of 
                assistance under this Act to comply substantially with 
                any material provision (as that term is defined by the 
                Secretary) of this Act is resulting, and would continue 
                to result, in a continuing expenditure of Federal funds 
                in a manner that is not authorized by law, the 
                Secretary may take an action described in paragraph 
                (1)(C) before conducting a hearing.
                    ``(B) Procedural requirement.--If the Secretary 
                takes an action described in subparagraph (A), the 
                Secretary shall--
                            ``(i) provide notice to the recipient at 
                        the time that the Secretary takes that action; 
                        and
                            ``(ii) conduct a hearing not later than 60 
                        days after the date on which the Secretary 
                        provides notice under clause (i).
                    ``(C) Determination.--Upon completion of a hearing 
                under this paragraph, the Secretary shall make a 
                determination regarding whether to continue taking the 
                action that is the subject of the hearing, or take 
                another action under this subsection.''.
    (i) Performance Agreement Time Limit.--Section 401(b) of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4161(b)) is amended--
            (1) by striking ``If the Secretary'' and inserting the 
        following:
            ``(1) In general.--If the Secretary'';
            (2) by striking ``(1) is not'' and inserting the following:
                    ``(A) is not'';
            (3) by striking ``(2) is a result'' and inserting the 
        following:
                    ``(B) is a result'';
            (4) in the flush material following paragraph (1)(B), as 
        redesignated by paragraph (3) of this subsection--
                    (A) by realigning such material so as to be 
                indented 2 ems from the left margin; and
                    (B) by inserting before the period at the end the 
                following: ``, if the recipient enters into a 
                performance agreement with the Secretary that specifies 
                the compliance objectives that the recipient will be 
                required to achieve by the termination date of the 
                performance agreement''; and
            (5) by adding at the end the following:
            ``(2) Performance agreement.--The period of a performance 
        agreement described in paragraph (1) shall be for 1 year.
            ``(3) Review.--Upon the termination of a performance 
        agreement entered into under paragraph (1), the Secretary shall 
        review the performance of the recipient that is a party to the 
        agreement.
            ``(4) Effect of review.--If, on the basis of a review under 
        paragraph (3), the Secretary determines that the recipient--
                    ``(A) has made a good faith effort to meet the 
                compliance objectives specified in the agreement, the 
                Secretary may enter into an additional performance 
                agreement for the period specified in paragraph (2); 
                and
                    ``(B) has failed to make a good faith effort to 
                meet applicable compliance objectives, the Secretary 
                shall determine the recipient to have failed to comply 
                substantially with this Act, and the recipient shall be 
                subject to an action under subsection (a).''.
    (j) Reference.--Section 104(b)(1) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4114(b)(1)) is 
amended by striking ``Davis-Bacon Act (40 U.S.C. 276a-276a-5)'' and 
inserting ``Act of March 3, 1931 (commonly known as the Davis-Bacon 
Act; chapter 411; 46 Stat. 1494; 40 U.S.C 276a et seq.)''.
    (k) Technical and Conforming Amendments.--
            (1) Table of contents.--Section 1(b) of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4101 note) is amended in the table of contents--
                    (A) by striking the item relating to section 206; 
                and
                    (B) by striking the item relating to section 209 
                and inserting the following:

``209. Noncompliance with affordable housing requirement.''.
            (2) Certification of compliance with subsidy layering 
        requirements.--Section 206 of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4136) 
        is repealed.
            (3) Terminations.--Section 502(a) of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4181(a)) is amended by adding at the end the following: 
        ``Any housing that is the subject of a contract for tenant-
        based assistance between the Secretary and an Indian housing 
        authority that is terminated under this section shall, for the 
        following fiscal year and each fiscal year thereafter, be 
        considered to be a dwelling unit under section 302(b)(1).''.

   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.

    Section 204 of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997 
(12 U.S.C. 1715z-11a) is amended--
            (1) by striking ``Flexible Authority.--'' and inserting 
        ``Disposition of HUD-Owned Properties. (a) Flexible Authority 
        for Multifamily Projects.--''; and
            (2) by adding at the end the following new subsection:
    ``(b) Transfer of Unoccupied and Substandard Housing to Local 
Governments and Community Development Corporations.--
            ``(1) Transfer authority.--Notwithstanding the authority 
        under subsection (a) and the last sentence of section 204(g) of 
        the National Housing Act (12 U.S.C. 1710(g)), the Secretary of 
        Housing and Urban Development shall transfer ownership of any 
        qualified HUD property, subject to the requirements of this 
        section, to a unit of general local government having 
        jurisdiction for the area in which the property is located or 
        to a community development corporation which operates within 
        such a unit of general local government in accordance with this 
        subsection, but only to the extent that units of general local 
        government and community development corporations consent to 
        transfer and the Secretary determines that such transfer is 
        practicable.
            ``(2) Qualified hud properties.--For purposes of this 
        subsection, the term `qualified HUD property' means any 
        property for which, as of the date that notification of the 
        property is first made under paragraph (3)(B), not less than 6 
        months have elapsed since the later of the date that the 
        property was acquired by the Secretary or the date that the 
        property was determined to be unoccupied or substandard, that 
        is owned by the Secretary and is--
                    ``(A) an unoccupied multifamily housing project;
                    ``(B) a substandard multifamily housing project; or
                    ``(C) an unoccupied single family property that--
                            ``(i) has been determined by the Secretary 
                        not to be an eligible asset under section 
                        204(h) of the National Housing Act (12 U.S.C. 
                        1710(h)); or
                            ``(ii) is an eligible asset under such 
                        section 204(h), but--
                                    ``(I) is not subject to a specific 
                                sale agreement under such section; and
                                    ``(II) has been determined by the 
                                Secretary to be inappropriate for 
                                continued inclusion in the program 
                                under such section 204(h) pursuant to 
                                paragraph (10) of such section.
            ``(3) Timing.--The Secretary shall establish procedures 
        that provide for--
                    ``(A) time deadlines for transfers under this 
                subsection;
                    ``(B) notification to units of general local 
                government and community development corporations of 
                qualified HUD properties in their jurisdictions;
                    ``(C) such units and corporations to express 
                interest in the transfer under this subsection of such 
                properties;
                    ``(D) a right of first refusal for transfer of 
                qualified HUD properties to units of general local 
                government and community development corporations, 
                under which--
                            ``(i) the Secretary shall establish a 
                        period during which the Secretary may not 
                        transfer such properties except to such units 
                        and corporations;
                            ``(ii) the Secretary shall offer qualified 
                        HUD properties that are single family 
                        properties for purchase by units of general 
                        local government at a cost of $1 for each 
                        property, but only to the extent that the costs 
                        to the Federal Government of disposal at such 
                        price do not exceed the costs to the Federal 
                        Government of disposing of property subject to 
                        the procedures for single family property 
                        established by the Secretary pursuant to the 
                        authority under the last sentence of section 
                        204(g) of the National Housing Act (12 U.S.C. 
                        1710(g));
                            ``(iii) the Secretary may accept an offer 
                        to purchase a property made by a community 
                        development corporation only if the offer 
                        provides for purchase on a cost recovery basis; 
                        and
                            ``(iv) the Secretary shall accept an offer 
                        to purchase such a property that is made during 
                        such period by such a unit or corporation and 
                        that complies with the requirements of this 
                        paragraph;
                    ``(E) a written explanation, to any unit of general 
                local government or community development corporation 
                making an offer to purchase a qualified HUD property 
                under this subsection that is not accepted, of the 
                reason that such offer was not acceptable.
            ``(4) Other disposition.--With respect to any qualified HUD 
        property, if the Secretary does not receive an acceptable offer 
        to purchase the property pursuant to the procedure established 
        under paragraph (3), the Secretary shall dispose of the 
        property to the unit of general local government in which 
        property is located or to community development corporations 
        located in such unit of general local government on a 
        negotiated, competitive bid, or other basis, on such terms as 
        the Secretary deems appropriate.
            ``(5) Satisfaction of indebtedness.--Before transferring 
        ownership of any qualified HUD property pursuant to this 
        subsection, the Secretary shall satisfy any indebtedness 
        incurred in connection with the property to be transferred, by 
        canceling the indebtedness.
            ``(6) Determination of status of properties.--To ensure 
        compliance with the requirements of this subsection, the 
        Secretary shall take the following actions:
                    ``(A) Upon enactment.--Upon the enactment of the 
                American Homeownership and Economic Opportunity Act of 
                2000, the Secretary shall promptly assess each 
                residential property owned by the Secretary to 
                determine whether such property is a qualified HUD 
                property.
                    ``(B) Upon acquisition.--Upon acquiring any 
                residential property, the Secretary shall promptly 
                determine whether the property is a qualified HUD 
                property.
                    ``(C) Updates.--The Secretary shall periodically 
                reassess the residential properties owned by the 
                Secretary to determine whether any such properties have 
                become qualified HUD properties.
            ``(7) Tenant leases.--This subsection shall not affect the 
        terms or the enforceability of any contract or lease entered 
        into with respect to any residential property before the date 
        that such property becomes a qualified HUD property.
            ``(8) Use of property.--Property transferred under this 
        subsection shall be used only for appropriate neighborhood 
        revitalization efforts, including homeownership, rental units, 
        commercial space, and parks, consistent with local zoning 
        regulations, local building codes, and subdivision regulations 
        and restrictions of record.
            ``(9) Inapplicability to properties made available for 
        homeless.--Notwithstanding any other provision of this 
        subsection, this subsection shall not apply to any properties 
        that the Secretary determines are to be made available for use 
        by the homeless pursuant to subpart E of part 291 of title 24, 
        Code of Federal Regulations, during the period that the 
        properties are so available.
            ``(10) Protection of existing contracts.--This subsection 
        may not be construed to alter, affect, or annul any legally 
        binding obligations entered into with respect to a qualified 
        HUD property before the property becomes a qualified HUD 
        property.
            ``(11) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Community development corporation.--The term 
                `community development corporation' means a nonprofit 
                organization whose primary purpose is to promote 
                community development by providing housing 
                opportunities for low-income families.
                    ``(B) Cost recovery basis.--The term `cost recovery 
                basis' means, with respect to any sale of a residential 
                property by the Secretary, that the purchase price paid 
                by the purchaser is equal to or greater than the sum of 
                (i) the appraised value of the property, as determined 
                in accordance with such requirements as the Secretary 
                shall establish, and (ii) the costs incurred by the 
                Secretary in connection with such property during the 
                period beginning on the date on which the Secretary 
                acquires title to the property and ending on the date 
                on which the sale is consummated.
                    ``(C) Multifamily housing project.--The term 
                `multifamily housing project' has the meaning given the 
                term in section 203 of the Housing and Community 
                Development Amendments of 1978.
                    ``(D) Residential property.--The term `residential 
                property' means a property that is a multifamily 
                housing project or a single family property.
                    ``(E) Secretary.--The term `Secretary' means the 
                Secretary of Housing and Urban Development.
                    ``(F) Severe physical problems.--The term `severe 
                physical problems' means, with respect to a dwelling 
                unit, that the unit--
                            ``(i) lacks hot or cold piped water, a 
                        flush toilet, or both a bathtub and a shower in 
                        the unit, for the exclusive use of that unit;
                            ``(ii) on not less than 3 separate 
                        occasions during the preceding winter months, 
                        was uncomfortably cold for a period of more 
                        than 6 consecutive hours due to a malfunction 
                        of the heating system for the unit;
                            ``(iii) has no functioning electrical 
                        service, exposed wiring, any room in which 
                        there is not a functioning electrical outlet, 
                        or has experienced 3 or more blown fuses or 
                        tripped circuit breakers during the preceding 
                        90-day period;
                            ``(iv) is accessible through a public 
                        hallway in which there are no working light 
                        fixtures, loose or missing steps or railings, 
                        and no elevator; or
                            ``(v) has severe maintenance problems, 
                        including water leaks involving the roof, 
                        windows, doors, basement, or pipes or plumbing 
                        fixtures, holes or open cracks in walls or 
                        ceilings, severe paint peeling or broken 
                        plaster, and signs of rodent infestation.
                    ``(G) Single family property.--The term `single 
                family property' means a 1- to 4-family residence.
                    ``(H) Substandard.--The term `substandard' means, 
                with respect to a multifamily housing project, that 25 
                percent or more of the dwelling units in the project 
                have severe physical problems.
                    ``(I) Unit of general local government.--The term 
                `unit of general local government' has the meaning 
                given such term in section 102(a) of the Housing and 
                Community Development Act of 1974.
                    ``(J) Unoccupied.--The term `unoccupied' means, 
                with respect to a residential property, that the unit 
                of general local government having jurisdiction over 
                the area in which the project is located has certified 
                in writing that the property is not inhabited.
            ``(12) Regulations.--
                    ``(A) Interim.--Not later than 30 days after the 
                date of the enactment of the American Homeownership and 
                Economic Opportunity Act of 2000, the Secretary shall 
                issue such interim regulations as are necessary to 
                carry out this subsection.
                    ``(B) Final.--Not later than 60 days after the date 
                of the enactment of the American Homeownership and 
                Economic Opportunity Act of 2000, the Secretary shall 
                issue such final regulations as are necessary to carry 
                out this subsection.''.

SEC. 802. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.

    In carrying out the program under section 204(h) of the National 
Housing Act (12 U.S.C. 1710(h)), upon the request of the chief 
executive officer of a county or the government of appropriate 
jurisdiction and not later than 60 days after such request is made, the 
Secretary of Housing and Urban Development shall designate as a 
revitalization area all portions of such county that meet the criteria 
for such designation under paragraph (3) of such section.

   TITLE IX--PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION

SECTION 901. SHORT TITLE.

    This title may be cited as the ``Private Mortgage Insurance 
Technical Corrections and Clarification Act''.

SEC. 902. CHANGES IN AMORTIZATION SCHEDULE.

    (a) Treatment of Adjustable Rate Mortgages.--The Homeowners 
Protection Act of 1998 (12 U.S.C. 4901 et seq.) is amended--
            (1) in section 2--
                    (A) in paragraph (2)(B)(i), by striking 
                ``amortization schedules'' and inserting ``the 
                amortization schedule then in effect'';
                    (B) in paragraph (16)(B), by striking 
                ``amortization schedules'' and inserting ``the 
                amortization schedule then in effect'';
                    (C) by redesignating paragraphs (6) through (16) 
                (as amended by the preceding provisions of this 
                paragraph) as paragraphs (8) through (18), 
                respectively; and
                    (D) by inserting after paragraph (5) the following 
                new paragraph:
            ``(6) Amortization schedule then in effect.--The term 
        `amortization schedule then in effect' means, with respect to 
        an adjustable rate mortgage, a schedule established at the time 
        at which the residential mortgage transaction is consummated 
        or, if such schedule has been changed or recalculated, is the 
        most recent schedule under the terms of the note or mortgage, 
        which shows--
                    ``(A) the amount of principal and interest that is 
                due at regular intervals to retire the principal 
                balance and accrued interest over the remaining 
                amortization period of the loan; and
                    ``(B) the unpaid balance of the loan after each 
                such scheduled payment is made.''; and
            (2) in section 3(f)(1)(B)(ii), by striking ``amortization 
        schedules'' and inserting ``the amortization schedule then in 
        effect''.
    (b) Treatment of Balloon Mortgages.--Paragraph (1) of section 2 of 
the Homeowners Protection Act of 1998 (12 U.S.C. 4901(1)) is amended by 
adding at the end the following new sentence: ``A residential mortgage 
that (A) does not fully amortize over the term of the obligation, and 
(B) contains a conditional right to refinance or modify the unamortized 
principal at the maturity date of the term, shall be considered to be 
an adjustable rate mortgage for purposes of this Act.''.
    (c) Treatment of Loan Modifications.--
            (1) In general.--Section 3 of the Homeowners Protection Act 
        of 1998 (12 U.S.C. 4902) is amended--
                    (A) by redesignating subsections (d) through (f) as 
                subsections (e) through (g), respectively; and
                    (B) by inserting after subsection (c) the following 
                new subsection:
    ``(d) Treatment of Loan Modifications.--If a mortgagor and 
mortgagee (or holder of the mortgage) agree to a modification of the 
terms or conditions of a loan pursuant to a residential mortgage 
transaction, the cancellation date, termination date, or final 
termination shall be recalculated to reflect the modified terms and 
conditions of such loan.''.
            (2) Conforming amendments.--Section 4(a) of the Homeowners 
        Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``section 3(f)(1)'' and 
                        inserting ``section 3(g)(1)'';
                            (ii) in subparagraph (A)(ii)(IV), by 
                        striking ``section 3(f)'' and inserting 
                        ``section 3(g)''; and
                            (iii) in subparagraph (B)(iii), by striking 
                        ``section 3(f)'' and inserting ``section 
                        3(g)''; and
                    (B) in paragraph (2), by striking ``section 
                3(f)(1)'' and inserting ``section 3(g)(1)''.

SEC. 903. DELETION OF AMBIGUOUS REFERENCES TO RESIDENTIAL MORTGAGES.

    (a) Termination of Private Mortgage Insurance.--Section 3 of the 
Homeowners Protection Act of 1998 (12 U.S.C. 4902) is amended--
            (1) in subsection (c), by inserting ``on residential 
        mortgage transactions'' after ``imposed''; and
            (2) in subsection (g) (as so redesignated by section 
        902(c)(1)(A) of this title)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``mortgage or'';
                    (B) in paragraph (2), by striking ``mortgage or''; 
                and
                    (C) in paragraph (3), by striking ``mortgage or'' 
                and inserting ``residential mortgage or residential''.
    (b) Disclosure Requirements.--Section 4 of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``mortgage or'' the first 
                        place it appears; and
                            (ii) by striking ``mortgage or'' the second 
                        place it appears and inserting ``residential''; 
                        and
                    (B) in paragraph (2), by striking ``mortgage or'' 
                and inserting ``residential'';
            (2) in subsection (c), by striking ``paragraphs (1)(B) and 
        (3) of subsection (a)'' and inserting ``subsection (a)(3)''; 
        and
            (3) in subsection (d), by inserting before the period at 
        the end the following: ``, which disclosures shall relate to 
        the mortgagor's rights under this Act''.
    (c) Disclosure Requirements for Lender-Paid Mortgage Insurance.--
Section 6 of the Homeowners Protection Act of 1998 (12 U.S.C. 4905) is 
amended--
            (1) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``a residential mortgage or''; and
                    (B) in paragraph (2), by inserting ``transaction'' 
                after ``residential mortgage''; and
            (2) in subsection (d), by inserting ``transaction'' after 
        ``residential mortgage''.

SEC. 904. CANCELLATION RIGHTS AFTER CANCELLATION DATE.

    Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902) 
is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting after ``cancellation date'' the following: 
                ``or any later date that the mortgagor fulfills all of 
                the requirements under paragraphs (1) through (4)'';
                    (B) in paragraph (2), by striking ``and'' at the 
                end;
                    (C) by redesignating paragraph (3) as paragraph 
                (4); and
                    (D) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) is current on the payments required by the terms of 
        the residential mortgage transaction; and''; and
            (2) in subsection (e)(1)(B) (as so redesignated by section 
        902(c)(1)(A) of this title), by striking ``subsection (a)(3)'' 
        and inserting ``subsection (a)(4)''.

SEC. 905. CLARIFICATION OF CANCELLATION AND TERMINATION ISSUES AND 
              LENDER PAID MORTGAGE INSURANCE DISCLOSURE REQUIREMENTS.

    (a) Good Payment History.--Section 2(4) of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4901(4)) is amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``the later of (i)'' before ``the 
                date''; and
                            (ii) by inserting ``, or (ii) the date that 
                        the mortgagor submits a request for 
                        cancellation under section 3(a)(1)'' before the 
                        semicolon; and
                    (B) in subparagraph (B)--
                            (i) by inserting ``the later of (i)'' 
                        before ``the date''; and
                            (ii) by inserting ``, or (ii) the date that 
                        the mortgagor submits a request for 
                        cancellation under section 3(a)(1)'' before the 
                        period at the end.
    (b) Automatic Termination.--Paragraph (2) of section 3(b) of the 
Homeowners Protection Act of 1998 (12 U.S.C. 4902(b)(2)) is amended to 
read as follows:
            ``(2) if the mortgagor is not current on the termination 
        date, on the first day of the first month beginning after the 
        date that the mortgagor becomes current on the payments 
        required by the terms of the residential mortgage 
        transaction.''
    (c) Premium Payments.--Section 3 of the Homeowners Protection Act 
of 1998 (12 U.S.C. 4902) is amended by adding at the end the following 
new subsection:
    ``(h) Accrued Obligation for Premium Payments.--The cancellation or 
termination under this section of the private mortgage insurance of a 
mortgagor shall not affect the rights of any mortgagee, servicer, or 
mortgage insurer to enforce any obligation of such mortgagor for 
premium payments accrued prior to the date on which such cancellation 
or termination occurred.''.

SEC. 906. DEFINITIONS.

    (a) Refinanced.--Section 6(c)(1)(B)(ii) of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii)) is amended by 
inserting after ``refinanced'' the following: ``(under the meaning 
given such term in the regulations issued by the Board of Governors of 
the Federal Reserve System to carry out the Truth in Lending Act (15 
U.S.C. 1601 et seq.))''.
    (b) Midpoint of the Amortization Period.--Section 2 of the 
Homeowners Protection Act of 1998 (12 U.S.C. 4901) is amended by 
inserting after paragraph (6) (as added by section 902(a)(1)(D) of this 
Act) the following new paragraph:
            ``(7) Midpoint of the amortization period.--The term 
        `midpoint of the amortization period' means, with respect to a 
        residential mortgage transaction, the point in time that is 
        halfway through the period that begins upon the first day of 
        the amortization period established at the time a residential 
        mortgage transaction is consummated and ends upon the 
        completion of the entire period over which the mortgage is 
        scheduled to be amortized.''.
    (c) Original Value.--Section 2(12) of the Homeowners Protection Act 
of 1998 (12 U.S.C. 4901(10)) (as so redesignated by section 
902(a)(1)(C) of this Act) is amended--
            (1) by inserting ``transaction'' after ``a residential 
        mortgage''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of a residential mortgage transaction for refinancing 
        the principal residence of the mortgagor, such term means only 
        the appraised value relied upon by the mortgagee to approve the 
        refinance transaction.''.
    (d) Principal Residence.--Section 2 of the Homeowners Protection 
Act of 1998 (12 U.S.C. 4901) is amended--
            (1) in paragraph (14) (as so redesignated by section 
        902(a)(1)(C) of this Act) by striking ``primary'' and inserting 
        ``principal''; and
            (2) in paragraph (15) (as so redesignated by section 
        902(a)(1)(C) of this Act) by striking ``primary'' and inserting 
        ``principal'';

                  TITLE X--RURAL HOUSING HOMEOWNERSHIP

SEC. 1001. PROMISSORY NOTE REQUIREMENT UNDER HOUSING REPAIR LOAN 
              PROGRAM.

    The fourth sentence of section 504(a) of the Housing Act of 1949 
(42 U.S.C. 1474(a)) is amended by striking ``$2,500'' and inserting 
``$7,500''.

SEC. 1002. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM LABOR HOUSING 
              LOANS.

    The first sentence of section 514(a) of the Housing Act of 1949 (42 
U.S.C. 1484(a)) is amended by striking ``nonprofit limited 
partnership'' and inserting ``limited partnership''.

SEC. 1003. PROJECT ACCOUNTING RECORDS AND PRACTICES.

    Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended 
by striking subsection (z) and inserting the following new subsections:
    ``(z) Accounting and Recordkeeping Requirements.--
            ``(1) Accounting standards.--The Secretary shall require 
        that borrowers in programs authorized by this section maintain 
        accounting records in accordance with generally accepted 
        accounting principles for all projects that receive funds from 
        loans made or guaranteed by the Secretary under this section.
            ``(2) Record retention requirements.--The Secretary shall 
        require that borrowers in programs authorized by this section 
        retain for a period of not less than 6 years and make available 
        to the Secretary in a manner determined by the Secretary, all 
        records required to be maintained under this subsection and 
        other records identified by the Secretary in applicable 
        regulations.
    ``(aa) Double Damages for Unauthorized Use of Housing Projects 
Assets and Income.--
            ``(1) Action to recover assets or income.--
                    ``(A) In general.--The Secretary may request the 
                Attorney General to bring an action in a United States 
                district court to recover any assets or income used by 
                any person in violation of the provisions of a loan 
                made or guaranteed by the Secretary under this section 
                or in violation of any applicable statute or 
                regulation.
                    ``(B) Improper documentation.--For purposes of this 
                subsection, a use of assets or income in violation of 
                the applicable loan, loan guarantee, statute, or 
                regulation shall include any use for which the 
                documentation in the books and accounts does not 
                establish that the use was made for a reasonable 
                operating expense or necessary repair of the project or 
                for which the documentation has not been maintained in 
                accordance with the requirements of the Secretary and 
                in reasonable condition for proper audit.
                    ``(C) Definition.--For the purposes of this 
                subsection, the term `person' means--
                            ``(i) any individual or entity that borrows 
                        funds in accordance with programs authorized by 
                        this section;
                            ``(ii) any individual or entity holding 25 
                        percent or more interest of any entity that 
                        borrows funds in accordance with programs 
                        authorized by this section; and
                            ``(iii) any officer, director, or partner 
                        of an entity that borrows funds in accordance 
                        with programs authorized by this section.
            ``(2) Amount recoverable.--
                    ``(A) In general.--In any judgment favorable to the 
                United States entered under this subsection, the 
                Attorney General may recover double the value of the 
                assets and income of the project that the court 
                determines to have been used in violation of the 
                provisions of a loan made or guaranteed by the 
                Secretary under this section or any applicable statute 
                or regulation, plus all costs related to the action, 
                including reasonable attorney and auditing fees.
                    ``(B) Application of recovered funds.--
                Notwithstanding any other provision of law, the 
                Secretary may use amounts recovered under this 
                subsection for activities authorized under this section 
                and such funds shall remain available for such use 
                until expended.
            ``(3) Time limitation.--Notwithstanding any other provision 
        of law, an action under this subsection may be commenced at any 
        time during the 6-year period beginning on the date that the 
        Secretary discovered or should have discovered the violation of 
        the provisions of this section or any related statutes or 
        regulations.
            ``(4) Continued availability of other remedies.--The remedy 
        provided in this subsection is in addition to and not in 
        substitution of any other remedies available to the Secretary 
        or the United States.''.

SEC. 1004. DEFINITION OF RURAL AREA.

    The second sentence of section 520 of the Housing Act of 1949 (42 
U.S.C. 1490) is amended by striking ``year 2000'' and inserting ``year 
2010''.

SEC. 1005. OPERATING ASSISTANCE FOR MIGRANT FARMWORKERS PROJECTS.

    The last sentence of section 521(a)(5)(A) of the Housing Act of 
1949 (42 U.S.C. 1490a(a)(5)(A)) is amended by striking ``project'' and 
inserting ``tenant or unit''.

SEC. 1006. MULTIFAMILY RENTAL HOUSING LOAN GUARANTEE PROGRAM.

    Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) is 
amended--
            (1) in subsection (c), by inserting ``an Indian 
        organization,'' after ``thereof,'';
            (2) in subsection (f), by striking paragraph (1) and 
        inserting the following new paragraph:
            ``(1) be made for a period of not less than 25 nor greater 
        than 40 years from the date the loan was made and may provide 
        for amortization of the loan over a period of not to exceed 40 
        years with a final payment of the balance due at the end of the 
        loan term;'';
            (3) in subsection (i)(2), by striking ``(A) conveyance to 
        the Secretary'' and all that follows through ``(C) assignment'' 
        and inserting ``(A) submission to the Secretary of a claim for 
        payment under the guarantee, and (B) assignment'';
            (4) in subsection (s), by adding at the end the following 
        new subsection:
            ``(4) Indian organization.--The term `Indian organization' 
        means the governing body of an Indian tribe, band, group, 
        pueblo, or community, including native villages or native 
        groups, as defined by the Alaska Claims Settlement Act (43 
        U.S.C. 1601 et seq.), (including corporations organized by the 
        Kenai, Juneau, Sitka, and Kodiak) which is eligible for 
        services from the Bureau of Indian Affairs or an entity 
        established or recognized by the governing body for the purpose 
        of financing economic development.'';
            (5) in subsection (t), by inserting before the period at 
        the end the following: ``to provide guarantees under this 
        section for eligible loans having an aggregate principal amount 
        of $500,000,000'';
            (6) by striking subsection (l);
            (7) by redesignating subsections (m) through (u) as 
        subsections (l) through (t), respectively;
            (8) by adding at the end the following new subsections:
    ``(u) Fee Authority.--
            ``(1) In general.--Any amounts collected by the Secretary 
        pursuant to the fees charged to lenders for loan guarantees 
        issued under this section shall be used to offset costs (as 
        defined by section 502 of the Congressional Budget Act of 1974 
        (2 U.S.C. 661a)) of loan guarantees made under this section.
            ``(2) Excess funds.--Any fees described in paragraph (1) 
        collected in excess of the amount required in paragraph (1) 
        during a fiscal year, shall be available to the Secretary, 
        without further appropriation and without fiscal year 
        limitation, for use by the Secretary for costs of administering 
        (including monitoring) program activities authorized pursuant 
        to this section and shall be in addition to other funds made 
        available for this purpose.
    ``(v) Defaults of Loans Secured by Reservation Lands.--In the event 
of a default involving a loan to an Indian tribe or tribal corporation 
made under this section which is secured by an interest in land within 
such tribe's reservation (as determined by the Secretary of the 
Interior), including a community in Alaska incorporated by the 
Secretary of the Interior pursuant to the Indian Reorganization Act (25 
U.S.C. 461 et seq.), the lender shall only pursue liquidation after 
offering to transfer the account to an eligible tribal member, the 
tribe, or the Indian housing authority serving the tribe. If the lender 
subsequently proceeds to liquidate the account, the lender shall not 
sell, transfer, or otherwise dispose of or alienate the property except 
to one of the entities described in the preceding sentence.''.

SEC. 1007. ENFORCEMENT PROVISIONS.

    (a) In General.--Title V of the Housing Act of 1949 (42 U.S.C. 1471 
et seq.) is amended by adding after section 542 the following:

``SEC. 543. ENFORCEMENT PROVISIONS.

    ``(a) Equity Skimming.--
            ``(1) Criminal penalty.--Whoever, as an owner, agent, 
        employee, or manager, or is otherwise in custody, control, or 
        possession of property that is security for a loan made or 
        guaranteed under this title, willfully uses, or authorizes the 
        use, of any part of the rents, assets, proceeds, income, or 
        other funds derived from such property, for any purpose other 
        than to meet actual, reasonable, and necessary expenses of the 
        property, or for any other purpose not authorized by this title 
        or the regulations adopted pursuant to this title, shall be 
        fined under title 18, United States Code, or imprisoned not 
        more than 5 years, or both.
            ``(2) Civil sanctions.--An entity or individual who as an 
        owner, operator, employee, or manager, or who acts as an agent 
        for a property that is security for a loan made or guaranteed 
        under this title where any part of the rents, assets, proceeds, 
        income, or other funds derived from such property are used for 
        any purpose other than to meet actual, reasonable, and 
        necessary expenses of the property, or for any other purpose 
        not authorized by this title or the regulations adopted 
        pursuant to this title, shall be subject to a fine of not more 
        than $25,000 per violation. The sanctions provided in this 
        paragraph may be imposed in addition to any other civil 
        sanctions or civil monetary penalties authorized by law.
    ``(b) Civil Monetary Penalties.--
            ``(1) In general.--The Secretary may, after notice and 
        opportunity for a hearing, impose a civil monetary penalty in 
        accordance with this subsection against any individual or 
        entity, including its owners, officers, directors, general 
        partners, limited partners, or employees, who knowingly and 
        materially violate, or participate in the violation of, the 
        provisions of this title, the regulations issued by the 
        Secretary pursuant to this title, or agreements made in 
        accordance with this title, by--
                    ``(A) submitting information to the Secretary that 
                is false;
                    ``(B) providing the Secretary with false 
                certifications;
                    ``(C) failing to submit information requested by 
                the Secretary in a timely manner;
                    ``(D) failing to maintain the property subject to 
                loans made or guaranteed under this title in good 
                repair and condition, as determined by the Secretary;
                    ``(E) failing to provide management for a project 
                which received a loan made or guaranteed under this 
                title that is acceptable to the Secretary; or
                    ``(F) failing to comply with the provisions of 
                applicable civil rights statutes and regulations.
            ``(2) Conditions for renewal or extension.--The Secretary 
        may require that expiring loan or assistance agreements entered 
        into under this title shall not be renewed or extended unless 
        the owner executes an agreement to comply with additional 
        conditions prescribed by the Secretary, or executes a new loan 
        or assistance agreement in the form prescribed by the 
        Secretary.
            ``(3) Amount.--
                    ``(A) In general.--The amount of a civil monetary 
                penalty imposed under this subsection shall not exceed 
                the greater of--
                            ``(i) twice the damages the Department of 
                        Agriculture, the guaranteed lender, or the 
                        project that is secured for a loan under this 
                        section suffered or would have suffered as a 
                        result of the violation; or
                            ``(ii) $50,000 per violation.
                    ``(B) Determination.--In determining the amount of 
                a civil monetary penalty under this subsection, the 
                Secretary shall take into consideration--
                            ``(i) the gravity of the offense;
                            ``(ii) any history of prior offenses by the 
                        violator (including offenses occurring prior to 
                        the enactment of this section);
                            ``(iii) the ability of the violator to pay 
                        the penalty;
                            ``(iv) any injury to tenants;
                            ``(v) any injury to the public;
                            ``(vi) any benefits received by the 
                        violator as a result of the violation;
                            ``(vii) deterrence of future violations; 
                        and
                            ``(viii) such other factors as the 
                        Secretary may establish by regulation.
            ``(4) Payment of penalties.--No payment of a penalty 
        assessed under this section may be made from funds provided 
        under this title or from funds of a project which serve as 
        security for a loan made or guaranteed under this title.
            ``(5) Remedies for noncompliance.--
                    ``(A) Judicial intervention.--If a person or entity 
                fails to comply with a final determination by the 
                Secretary imposing a civil monetary penalty under this 
                subsection, the Secretary may request the Attorney 
                General of the United States to bring an action in an 
                appropriate United States district court to obtain a 
                monetary judgment against such individual or entity and 
                such other relief as may be available. The monetary 
                judgment may, in the court's discretion, include the 
                attorney's fees and other expenses incurred by the 
                United States in connection with the action.
                    ``(B) Reviewability of determination.--In an action 
                under this paragraph, the validity and appropriateness 
                of a determination by the Secretary imposing the 
                penalty shall not be subject to review.''.
    (b) Conforming Amendment.--Section 514 of the Housing Act of 1949 
(42 U.S.C. 1484) is amended by striking subsection (j).

SEC. 1008. AMENDMENTS TO TITLE 18 OF UNITED STATES CODE.

    (a) Money Laundering.--Section 1956(c)(7)(D) of title 18, United 
States Code, is amended by inserting ``any violation of section 
543(a)(1) of the Housing Act of 1949 (relating to equity skimming),'' 
after ``coupons having a value of not less than $5,000,''.
    (b) Obstruction of Federal Audits.--Section 1516(a) of title 18, 
United States Code, is amended by inserting ``or relating to any 
property that is security for a loan that is made or guaranteed under 
title V of the Housing Act of 1949,'' before ``shall be fined under 
this title''.

               TITLE XI--MANUFACTURED HOUSING IMPROVEMENT

SEC. 1101. SHORT TITLE AND REFERENCES.

    (a) Short Title.--This title may be cited as the ``Manufactured 
Housing Improvement Act''.
    (b) References.--Whenever in this title an amendment is expressed 
in terms of an amendment to, or repeal of, an Act, a section, or any 
other provision, the reference shall be considered to be made to that 
section or other provision of the National Manufactured Housing 
Construction and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).

SEC. 1102. FINDINGS AND PURPOSES.

    Section 602 (42 U.S.C. 5401) is amended to read as follows:

                        ``findings and purposes

    ``Sec. 602. (a) Findings.--The Congress finds that--
            ``(1) manufactured housing plays a vital role in meeting 
        the housing needs of the Nation; and
            ``(2) manufactured homes provide a significant resource for 
        affordable homeownership and rental housing accessible to all 
        Americans.
    ``(b) Purposes.--The purposes of this title are--
            ``(1) to facilitate the acceptance of the quality, 
        durability, safety, and affordability of manufactured housing 
        within the Department of Housing and Urban Development;
            ``(2) to facilitate the availability of affordable 
        manufactured homes and to increase homeownership for all 
        Americans;
            ``(3) to provide for the establishment of practical, 
        uniform, and, to the extent possible, performance-based Federal 
        construction standards;
            ``(4) to encourage innovative and cost-effective 
        construction techniques;
            ``(5) to protect owners of manufactured homes from 
        unreasonable risk of personal injury and property damage;
            ``(6) to establish a balanced consensus process for the 
        development, revision, and interpretation of Federal 
        construction and safety standards for manufactured homes and 
        related regulations for the enforcement of such standards;
            ``(7) to ensure uniform and effective enforcement of 
        Federal construction and safety standards for manufactured 
        homes; and
            ``(8) to ensure that the public interest in, and need for, 
        affordable manufactured housing is duly considered in all 
        determinations relating to the Federal standards and their 
        enforcement.''.

SEC. 1103. DEFINITIONS.

    (a) In General.--Section 603 (42 U.S.C. 5402) is amended--
            (1) in paragraph (2), by striking ``dealer'' and inserting 
        ``retailer'';
            (2) in paragraph (12), by striking ``and'' at the end;
            (3) in paragraph (13), by striking the period at the end 
        and inserting a semicolon; and
            (4) by adding at the end the following new paragraphs:
            ``(14) `administering organization' means the recognized, 
        voluntary, private sector, consensus standards body with 
        specific experience in developing model residential building 
        codes and standards involving all disciplines regarding 
        construction and safety that administers the consensus 
        standards development process;
            ``(15) `consensus committee' means the committee 
        established under section 604(a)(3);
            ``(16) `consensus standards development process' means the 
        process by which additions, revisions, and interpretations to 
        the Federal manufactured home construction and safety standards 
        and enforcement regulations shall be developed and recommended 
        to the Secretary by the consensus committee;
            ``(17) `primary inspection agency' means a State agency or 
        private organization that has been approved by the Secretary to 
        act as a design approval primary inspection agency or a 
        production inspection primary inspection agency, or both;
            ``(18) `design approval primary inspection agency' means a 
        State agency or private organization that has been approved by 
        the Secretary to evaluate and either approve or disapprove 
        manufactured home designs and quality control procedures;
            ``(19) `production inspection primary inspection agency' 
        means a State agency or private organization that has been 
        approved by the Secretary to evaluate the ability of 
        manufactured home manufacturing plants to comply with approved 
        quality control procedures and with the Federal manufactured 
        home construction and safety standards promulgated hereunder;
            ``(20) `installation standards' means reasonable 
        specifications for the installation of a manufactured home, at 
        the place of occupancy, to ensure proper siting, the joining of 
        all sections of the home, and the installation of 
        stabilization, support, or anchoring systems; and
            ``(21) `monitoring'--
                    ``(A) means the process of periodic review of the 
                primary inspection agencies, by the Secretary or by a 
                State agency under an approved State plan pursuant to 
                section 623, in accordance with regulations recommended 
                by the consensus committee and promulgated in 
                accordance with section 604(b), which process shall be 
                for the purpose of ensuring that the primary inspection 
                agencies are discharging their duties under this title; 
                and
                    ``(B) may include the periodic inspection of retail 
                locations for transit damage, label tampering, and 
                retailer compliance with this title.''.
    (b) Conforming Amendments.--The Act is amended--
            (1) in section 613 (42 U.S.C. 5412), by striking ``dealer'' 
        each place it appears and inserting ``retailer'';
            (2) in section 614(f) (42 U.S.C. 5413(f)), by striking 
        ``dealer'' each place it appears and inserting ``retailer'';
            (3) in section 615 (42 U.S.C. 5414)--
                    (A) in subsection (b)(1), by striking ``dealer'' 
                and inserting ``retailer'';
                    (B) in subsection (b)(3), by striking ``dealer or 
                dealers'' and inserting ``retailer or retailers''; and
                    (C) in subsections (d) and (f), by striking 
                ``dealers'' each place it appears and inserting 
                ``retailers'';
            (4) in section 616 (42 U.S.C. 5415), by striking ``dealer'' 
        and inserting ``retailer''; and
            (5) in section 623(c)(9), by striking ``dealers'' and 
        inserting ``retailers''.

SEC. 1104. FEDERAL MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS.

    Section 604 (42 U.S.C. 5403) is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following new subsections:
    ``(a) Establishment.--
            ``(1) Authority.--The Secretary shall establish, by order, 
        appropriate Federal manufactured home construction and safety 
        standards, each of which--
                    ``(A) shall--
                            ``(i) be reasonable and practical;
                            ``(ii) meet high standards of protection 
                        consistent with the enumerated purposes of this 
                        title; and
                            ``(iii) where appropriate, be performance-
                        based and objectively stated; and
                    ``(B) except as provided in subsection (b), shall 
                be established in accordance with the consensus 
                standards development process.
            ``(2) Consensus standards and regulatory development 
        process.--
                    ``(A) Initial agreement.--Not later than 180 days 
                after the date of enactment of the Manufactured Housing 
                Improvement Act, the Secretary shall enter into a 
                contract with an administering organization. The 
                contractual agreement shall--
                            ``(i) terminate on the date on which a 
                        contract is entered into under subparagraph 
                        (B); and
                            ``(ii) require the administering 
                        organization to--
                                    ``(I) appoint the initial members 
                                of the consensus committee under 
                                paragraph (3);
                                    ``(II) administer the consensus 
                                standards development process until the 
                                termination of that agreement; and
                                    ``(III) administer the consensus 
                                development and interpretation process 
                                for procedural and enforcement 
                                regulations and regulations specifying 
                                the permissible scope and conduct of 
                                monitoring until the termination of 
                                that agreement.
                    ``(B) Competitively procured contract.--Upon the 
                expiration of the 4-year period beginning on the date 
                on which all members of the consensus committee are 
                appointed under paragraph (3), the Secretary shall, 
                using competitive procedures (as such term is defined 
                in section 4 of the Office of Federal Procurement 
                Policy Act), enter into a competitively awarded 
                contract with an administering organization. The 
                administering organization shall administer the 
                consensus process for the development and 
                interpretation of the Federal standards, the procedural 
                and enforcement regulations and regulations specifying 
                the permissible scope and conduct of monitoring in 
                accordance with this title.
                    ``(C) Performance review.--The Secretary--
                            ``(i) shall periodically review the 
                        performance of the administering organization; 
                        and
                            ``(ii) may replace the administering 
                        organization with another qualified technical 
                        or building code organization, pursuant to 
                        competitive procedures, if the Secretary 
                        determines in writing that the administering 
                        organization is not fulfilling the terms of the 
                        agreement or contract to which the 
                        administering organization is subject or upon 
                        the expiration of the agreement or contract.
            ``(3) Consensus committee.--
                    ``(A) Purpose.--There is established a committee to 
                be known as the `consensus committee', which shall, in 
                accordance with this title--
                            ``(i) provide periodic recommendations to 
                        the Secretary to adopt, revise, and interpret 
                        the Federal manufactured housing construction 
and safety standards in accordance with this subsection;
                            ``(ii) provide periodic recommendations to 
                        the Secretary to adopt, revise, and interpret 
                        the procedural and enforcement regulations, 
                        including regulations specifying the 
                        permissible scope and conduct of monitoring in 
                        accordance with this subsection; and
                            ``(iii) be organized and carry out its 
                        business in a manner that guarantees a fair 
                        opportunity for the expression and 
                        consideration of various positions and for 
                        public participation.
                    ``(B) Membership.--The consensus committee shall be 
                composed of--
                            ``(i) 21 voting members appointed, subject 
                        to approval by the Secretary, by the 
                        administering organization from among 
                        individuals who are qualified by background and 
                        experience to participate in the work of the 
                        consensus committee; and
                            ``(ii) 1 member appointed by the Secretary 
                        to represent the Secretary on the consensus 
                        committee, who shall be a nonvoting member.
                    ``(C) Disapproval.--The Secretary may disapprove, 
                in writing with the reasons set forth, the appointment 
                of an individual under subparagraph (B)(i).
                    ``(D) Selection procedures and requirements.--Each 
                member shall be appointed in accordance with the 
                selection procedures, which shall be established by the 
                Secretary and which shall be based on the procedures 
                for consensus committees promulgated by the American 
                National Standards Institute (or successor 
                organization), to ensure equal representation on the 
                consensus committee of the following interest 
                categories:
                            ``(i) Producers.--7 producers or retailers 
                        of manufactured housing.
                            ``(ii) Users.--7 persons representing 
                        consumer interests, such as consumer 
                        organizations, recognized consumer leaders, and 
                        owners who are residents of manufactured homes.
                            ``(iii) General interest and public 
                        officials.--7 general interest and public 
                        official members.
                    ``(E) Balancing of interests.--
                            ``(i) In general.--In order to achieve a 
                        proper balance of interests on the consensus 
                        committee--
                                    ``(I) the administering 
                                organization in its appointments shall 
                                ensure that all directly and materially 
                                affected interests have the opportunity 
                                for fair and equitable participation 
                                without dominance by any single 
                                interest; and
                                    ``(II) the Secretary may reject the 
                                appointment of any 1 or more 
                                individuals in order to ensure that 
                                there is not dominance by any single 
                                interest.
                            ``(ii) Dominance defined.--In this 
                        subparagraph, the term `dominance' means a 
                        position or exercise of dominant authority, 
                        leadership, or influence by reason of superior 
                        leverage, strength, or representation.
                    ``(F) Additional qualifications.--
                            ``(i) Financial independence.--No 
                        individual appointed under subparagraph (D)(ii) 
                        shall have, and 3 of individuals appointed 
                        under subparagraph (D)(iii) shall not have--
                                    ``(I) a significant financial 
                                interest in any segment of the 
                                manufactured housing industry; or
                                    ``(II) a significant relationship 
                                to any person engaged in the 
                                manufactured housing industry.
                            ``(ii) Post-employment ban.--An individual 
                        appointed under clause (ii) or (iii) of 
                        subparagraph (D) shall be subject to a ban 
                        disallowing compensation from the manufactured 
                        housing industry during the period of, and for 
                        the 1-year period after, membership of that 
                        individual on the consensus committee.
                    ``(G) Meetings.--
                            ``(i) Notice; open to public.--The 
                        consensus committee shall provide advance 
                        notice of each meeting of the consensus 
                        committee to the Secretary and publish advance 
                        notice of each such meeting in the Federal 
                        Register. All meetings of the consensus 
                        committee shall be open to the public.
                            ``(ii) Reimbursement.--Members of the 
                        consensus committee in attendance at the 
                        meetings shall be reimbursed for their actual 
                        expenses as authorized by section 5703 of title 
                        5, United States Code, for persons employed 
                        intermittently in Government service.
                    ``(H) Inapplicability of other laws.--
                            ``(i) Advisory committee act.--The 
                        consensus committee shall not be considered to 
                        be an advisory committee for purposes of the 
                        Federal Advisory Committee Act.
                            ``(ii) Title 18.--The members of the 
                        consensus committee shall not be subject to 
                        section 203, 205, 207, or 208 of title 18, 
                        United States Code, to the extent of their 
                        proper participation as members of the 
                        consensus committee.
                            ``(iii) Ethics in government act of 1978.--
                        The Ethics in Government Act of 1978 shall not 
                        apply to members of the consensus committee to 
                        the extent of their proper participation as 
                        members of the consensus committee.
                    ``(I) Administration.--The consensus committee and 
                the administering organization shall--
                            ``(i) operate in conformance with the 
                        procedures established by the American National 
                        Standards Institute for the development and 
                        coordination of American National Standards; 
                        and
                            ``(ii) apply to the American National 
                        Standards Institute and take such other actions 
                        as may be necessary to obtain accreditation 
                        from the American National Standards Institute.
                    ``(J) Staff.--The administering organization shall, 
                upon the request of the consensus committee, provide 
                reasonable staff resources to the consensus committee. 
                Upon a showing of need, the Secretary shall furnish 
                technical support to any of the various interest 
                categories on the consensus committee.
                    ``(K) Date of initial appointments.--The initial 
                appointments of all of the members of the consensus 
                committee shall be completed not later than 90 days 
                after the date on which an administration agreement 
                under paragraph (2)(A) is completed with the 
                administering organization.
            ``(4) Revisions of standards.--
                    ``(A) In general.--Beginning on the date on which 
                all members of the consensus committee are appointed 
                under paragraph (3), the consensus committee shall, not 
                less than once during each 2-year period--
                            ``(i) consider revisions to the Federal 
                        manufactured home construction and safety 
                        standards; and
                            ``(ii) submit proposed revised standards 
                        and regulations, if approved in a vote of the 
                        consensus committee by two-thirds of the 
                        members, to the Secretary in the form of a 
                        proposed rule, including an economic analysis.
                    ``(B) Publication of proposed revised standards.--
                            ``(i) Publication by secretary.--The 
                        consensus committee shall provide a proposed 
                        revised standard under subparagraph (A)(ii) to 
                        the Secretary who shall, not later than 30 days 
                        after receipt, publish such proposed revised 
                        standard in the Federal Register for notice and 
                        comment. Unless clause (ii) applies, the 
                        Secretary shall provide an opportunity for 
                        public comment on such proposed revised 
                        standard and any such comments shall be 
                        submitted directly to the consensus committee 
                        without delay.
                            ``(ii) Publication of rejected proposed 
                        revised standard.--If the Secretary rejects the 
                        proposed revised standard, the Secretary shall 
                        publish the rejected proposed revised standard 
                        in the Federal Register with the reasons for 
                        rejection and any recommended modifications set 
                        forth.
                    ``(C) Presentation of public comments; publication 
                of recommended revisions.--
                            ``(i) Presentation.--Any public comments, 
                        views, and objections to a proposed revised 
                        standard published under subparagraph (B) shall 
                        be presented by the Secretary to the consensus 
                        committee upon their receipt and in the manner 
                        received, in accordance with procedures 
                        established by the American National Standards 
                        Institute.
                            ``(ii) Publication by the secretary.--The 
                        consensus committee shall provide to the 
                        Secretary any revisions proposed by the 
                        consensus committee, which the Secretary shall, 
                        not later than 7 calendar days after receipt, 
                        cause to be published in the Federal Register 
                        as a notice of the recommended revisions of the 
                        consensus committee to the standard, a notice 
                        of the submission of the recommended revisions 
                        to the Secretary, and a description of the 
                        circumstances under which the proposed revised 
                        standards could become effective.
                            ``(iii) Publication of rejected proposed 
                        revised standard.--If the Secretary rejects the 
                        proposed revised standard, the Secretary shall 
                        publish the rejected proposed revised standard 
                        in the Federal Register with the reasons for 
                        rejection and any recommended modifications set 
                        forth.
            ``(5) Review by the secretary.--
                    ``(A) In general.--The Secretary shall either 
                adopt, modify, or reject a standard, as submitted by 
                the consensus committee under paragraph (4)(A).
                    ``(B) Timing.--Not later than 12 months after the 
                date on which a standard is submitted to the Secretary 
                by the consensus committee, the Secretary shall take 
                action regarding such standard under subparagraph (C).
                    ``(C) Procedures.--If the Secretary--
                            ``(i) adopts a standard recommended by the 
                        consensus committee, the Secretary shall--
                                    ``(I) issue a final order without 
                                further rulemaking; and
                                    ``(II) cause the final order to be 
                                published in the Federal Register;
                            ``(ii) determines that any standard should 
                        be rejected, the Secretary shall--
                                    ``(I) reject the standard; and
                                    ``(II) cause to be published in the 
                                Federal Register a notice to that 
                                effect, together with the reason or 
                                reasons for rejecting the proposed 
                                standard; or
                            ``(iii) determines that a standard 
                        recommended by the consensus committee should 
                        be modified, the Secretary shall--
                                    ``(I) cause the proposed modified 
                                standard to be published in the Federal 
                                Register, together with an explanation 
                                of the reason or reasons for the 
                                determination of the Secretary; and
                                    ``(II) provide an opportunity for 
                                public comment in accordance with 
                                section 553 of title 5, United States 
                                Code.
                    ``(D) Final order.--Any final standard under this 
                paragraph shall become effective pursuant to subsection 
                (c).
            ``(6) Failure to act.--If the Secretary fails to take final 
        action under paragraph (5) and to publish notice of the action 
        in the Federal Register before the expiration of the 12-month 
        period beginning on the date on which the proposed standard is 
        submitted to the Secretary under paragraph (4)(A)--
                    ``(A) the recommendations of the consensus 
                committee--
                            ``(i) shall be considered to have been 
                        adopted by the Secretary; and
                            ``(ii) shall take effect upon the 
                        expiration of the 180-day period that begins 
                        upon the conclusion of such 12-month period; 
                        and
                    ``(B) not later than 10 days after the expiration 
                of such 12-month period, the Secretary shall cause to 
                be published in the Federal Register a notice of the 
                failure of the Secretary to act, the revised standard, 
                and the effective date of the revised standard, which 
                notice shall be deemed to be an order of the Secretary 
                approving the revised standards proposed by the 
                consensus committee.
    ``(b) Other Orders.--
            ``(1) Regulations.--The Secretary may issue procedural and 
        enforcement regulations as necessary to implement the 
        provisions of this title. The consensus committee may submit to 
        the Secretary proposed procedural and enforcement regulations 
        and recommendations for the revision of such regulations.
            ``(2) Interpretative bulletins.--The Secretary may issue 
        interpretative bulletins to clarify the meaning of any Federal 
        manufactured home construction and safety standard or 
        procedural and enforcement regulation. The consensus committee 
        may submit to the Secretary proposed interpretative bulletins 
        to clarify the meaning of any Federal manufactured home 
        construction and safety standard or procedural and enforcement 
        regulation.
            ``(3) Review by consensus committee.--Before issuing a 
        procedural or enforcement regulation or an interpretative 
        bulletin--
                    ``(A) the Secretary shall--
                            ``(i) submit the proposed procedural or 
                        enforcement regulation or interpretative 
                        bulletin to the consensus committee; and
                            ``(ii) provide the consensus committee with 
                        a period of 120 days to submit written comments 
                        to the Secretary on the proposed procedural or 
                        enforcement regulation or the interpretative 
                        bulletin; and
                    ``(B) if the Secretary rejects any significant 
                comment provided by the consensus committee under 
                subparagraph (A), the Secretary shall provide a written 
                explanation of the reasons for the rejection to the 
                consensus committee; and
                    ``(C) following compliance with subparagraphs (A) 
                and (B), the Secretary shall--
                            ``(i) cause the proposed regulation or 
                        interpretative bulletin and the consensus 
                        committee's written comments along with the 
                        Secretary's response thereto to be published in 
                        the Federal Register; and
                            ``(ii) provide an opportunity for public 
                        comment in accordance with section 553 of title 
                        5, United States Code.
            ``(4) Required action.--The Secretary shall act on any 
        proposed regulation or interpretative bulletin submitted by the 
        consensus committee by approving or rejecting the proposal 
        within 120 days from the date the proposal is received by the 
        Secretary. The Secretary shall either--
                    ``(A) approve the proposal and cause the proposed 
                regulation or interpretative bulletin to be published 
                for public comment in accordance with section 553 of 
                title 5, United States Code; or
                    ``(B) reject the proposed regulation or 
                interpretative bulletin and--
                            ``(i) provide a written explanation of the 
                        reasons for rejection to the consensus 
                        committee; and
                            ``(ii) cause the proposed regulation and 
                        the written explanation for the rejection to be 
                        published in the Federal Register.
            ``(5) Emergency orders.--If the Secretary determines, in 
        writing, that such action is necessary in order to respond to 
        an emergency which jeopardizes the public health or safety, or 
        to address an issue on which the Secretary determines that the 
        consensus committee has not made a timely recommendation, 
        following a request by the Secretary, the Secretary may issue 
        an order that is not developed under the procedures set forth 
        in subsection (a) or in this subsection, if the Secretary--
                    ``(A) provides to the consensus committee a written 
                description and sets forth the reasons why emergency 
                action is necessary and all supporting documentation; 
                and
                    ``(B) issues and publishes the order in the Federal 
                Register.
            ``(6) Changes.--Any statement of policies, practices, or 
        procedures relating to construction and safety standards, 
        inspections, monitoring, or other enforcement activities which 
        constitutes a statement of general or particular applicability 
        and future offset and decisions to implement, interpret, or 
        prescribe law of policy by the Secretary is subject to the 
        provisions of subsection (a) or (b) of this subsection. Any 
        change adopted in violation of the provisions of subsection (a) 
        or (b) of this subsection is void.
            ``(7) Transition.--Until the date that the consensus 
        committee is appointed pursuant to section 1104(a)(3), the 
        Secretary may issue proposed orders that are not developed 
        under the procedures set forth in this section for new and 
        revised standards.'';
            (2) in subsection (d), by adding at the end the following: 
        ``Federal preemption under this subsection shall be broadly and 
        liberally construed to ensure that disparate State or local 
        requirements or standards do not affect the uniformity and 
        comprehensiveness of the standards promulgated hereunder nor 
        the Federal superintendence of the manufactured housing 
        industry as established by this title. Subject to section 605, 
        there is reserved to each State the right to establish 
        standards for the stabilizing and support systems of 
        manufactured homes sited within that State, and for the 
        foundations on which manufactured homes sited within that State 
        are installed, and the right to enforce compliance with such 
        standards, except that such standards shall be consistent with 
        the purposes of this title and shall be consistent with the 
        design of the manufacturer.'';
            (3) by striking subsection (e);
            (4) in subsection (f), by striking the subsection 
        designation and all of the matter that precedes paragraph (1) 
        and inserting the following:
    ``(e) Considerations in Establishing and Interpreting Standards and 
Regulations.--The consensus committee, in recommending standards, 
regulations, and interpretations, and the Secretary, in establishing 
standards or regulations, or issuing interpretations under this 
section, shall--'';
            (5) by striking subsection (g);
            (6) in the first sentence of subsection (j), by striking 
        ``subsection (f)'' and inserting ``subsection (e)''; and
            (7) by redesignating subsections (h), (i), and (j), as 
        subsections (f), (g), and (h), respectively.

SEC. 1105. ABOLISHMENT OF NATIONAL MANUFACTURED HOME ADVISORY COUNCIL; 
              MANUFACTURED HOME INSTALLATION.

    (a) In General.--Section 605 (42 U.S.C. 5404) is amended to read as 
follows:

``SEC. 605. MANUFACTURED HOME INSTALLATION.

    ``(a) Provision of Installation Design and Instructions.--A 
manufacturer shall provide with each manufactured home, design and 
instructions for the installation of the manufactured home that have 
been approved by a design approval primary inspection agency. After 
establishment of model standards under subsection (b)(2), a design 
approval primary inspection agency may not give such approval unless a 
design and instruction provides equal or greater protection than the 
protection provided under such model standards.
    ``(b) Model Manufactured Home Installation Standards.--
            ``(1) Proposed model standards.--Not later than 18 months 
        after the date on which the initial appointments of all of the 
        members of the consensus committee are completed, the consensus 
        committee shall develop and submit to the Secretary proposed 
        model manufactured home installation standards, which shall, to 
        the maximum extent possible, taking into account the factors 
        described in section 604(e), be consistent with--
                    ``(A) the home designs that have been approved by a 
                design approval primary inspection agency; and
                    ``(B) the designs and instructions for the 
                installation of manufactured homes provided by 
                manufacturers under subsection (a).
            ``(2) Establishment of model standards.--Not later than 12 
        months after receiving the proposed model standards submitted 
        under paragraph (1), the Secretary shall develop and establish 
        model manufactured home installation standards, which shall be 
        consistent with--
                    ``(A) the home designs that have been approved by a 
                design approval primary inspection agency; and
                    ``(B) the designs and instructions for the 
                installation of manufactured homes provided by 
                manufacturers under subsection (a).
            ``(3) Factors for consideration.--
                    ``(A) Consensus committee.--In developing the 
                proposed model standards under paragraph (1), the 
                consensus committee shall consider the factors 
                described in section 604(e).
                    ``(B) Secretary.--In developing and establishing 
                the model standards under paragraph (2), the Secretary 
                shall consider the factors described in section 604(e).
    ``(c) Manufactured Home Installation Programs.--
            ``(1) Protection of manufactured housing residents during 
        initial period.--During the 5-year period beginning on the date 
        of enactment of the Manufactured Housing Improvement Act, no 
        State or manufacturer may establish or implement any 
        installation standards that, in the determination of the 
        Secretary, provide less protection to the residents of 
        manufactured homes than the protection provided by the 
        installation standards in effect with respect to the State or 
        manufacturer, as applicable, on the date of enactment of the 
        Manufactured Housing Improvement Act.
            ``(2) Installation standards.--
                    ``(A) Establishment of installation program.--Not 
                later than the expiration of the 5-year period 
                described in paragraph (1), the Secretary shall 
                establish an installation program that meets the 
                requirements of paragraph (3) for the enforcement of 
                installation standards in each State described in 
                subparagraph (B).
                    ``(B) Implementation of installation program.--
                Beginning on the expiration of the 5-year period 
                described in paragraph (1), the Secretary shall 
                implement the installation program established under 
                subparagraph (A) in each State that does not have an 
                installation program established by State law that 
                meets the requirements of paragraph (3).
                    ``(C) Contracting out of implementation.--In 
                carrying out subparagraph (B), the Secretary may 
                contract with an appropriate agent to implement the 
                installation program established under that 
                subparagraph, except that such agent shall not be a 
                person or entity other than a government, nor an 
                affiliate or subsidiary of such a person or entity, 
                that has entered into a contract with the Secretary to 
                implement any other regulatory program under this 
                title.
            ``(3) Requirements.--An installation program meets the 
        requirements of this paragraph if it is a program regulating 
        the installation of manufactured homes that includes--
                    ``(A) installation standards that, in the 
                determination of the Secretary, provide protection to 
                the residents of manufactured homes that equals or 
                exceeds the protection provided to those residents by--
                            ``(i) the model manufactured home 
                        installation standards established under 
                        subsection (b); or
                            ``(ii) the designs and instructions 
                        provided by manufacturers under subsection (a), 
                        if the Secretary determines that such designs 
                        and instructions provide protection to the 
                        residents of the manufactured home that equals 
                        or exceeds the protection provided by the model 
                        manufactured home installation standards 
                        established under subsection (b);
                    ``(B) the training and licensing of manufactured 
                home installers; and
                    ``(C) inspection of the installation of 
                manufactured homes.''.
    (b) Conforming Amendments.--Section 623(c) (42 U.S.C. 5422(c)) is 
amended--
            (1) in paragraph (10), by striking ``and'' at the end;
            (2) by redesignating paragraph (11) as paragraph (13); and
            (3) by inserting after paragraph (10) the following:
            ``(11) with respect to any State plan submitted on or after 
        the expiration of the 5-year period beginning on the date of 
        enactment of the Manufactured Housing Improvement Act, provides 
        for an installation program established by State law that meets 
        the requirements of section 605(c)(3);''.

SEC. 1106. PUBLIC INFORMATION.

    Section 607 (42 U.S.C. 5406) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``to the Secretary'' after 
                ``submit''; and
                    (B) by adding at the end the following: ``The 
                Secretary shall submit such cost and other information 
                to the consensus committee for evaluation.'';
            (2) in subsection (d), by inserting ``, the consensus 
        committee,'' after ``public''; and
            (3) by striking subsection (c) and redesignating 
        subsections (d) and (e) as subsections (c) and (d), 
        respectively.

SEC. 1107. RESEARCH, TESTING, DEVELOPMENT, AND TRAINING.

    (a) In General.--Section 608(a) (42 U.S.C. 5407(a)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(4) encouraging the government sponsored housing entities 
        to actively develop and implement secondary market 
        securitization programs for FHA manufactured home loans and 
        those of other loan programs, as appropriate, thereby promoting 
        the availability of affordable manufactured homes to increase 
        homeownership for all people in the United States; and
            ``(5) reviewing the programs for FHA manufactured home 
        loans and developing any changes to such programs to promote 
        the affordability of manufactured homes, including changes in 
        loan terms, amortization periods, regulations, and 
        procedures.''.
    (b) Definitions.--Section 608 (42 U.S.C. 5407) is amended by adding 
at the end the following new subsection:
    ``(c) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Government sponsored housing entities.--The term 
        `government sponsored housing entities' means the Government 
        National Mortgage Association of the Department of Housing and 
        Urban Development, the Federal National Mortgage Association, 
        and the Federal Home Loan Mortgage Corporation.
            ``(2) FHA manufactured home loans.--The term `FHA 
        manufactured home loan' means a loan that--
                    ``(A) is insured under title I of the National 
                Housing Act and is made for the purpose of financing 
                alterations, repairs, or improvements on or in 
                connection with an existing manufactured home, the 
                purchase of a manufactured home, the purchase of a 
                manufactured home and a lot on which to place the home, 
                or the purchase only of a lot on which to place a 
                manufactured home; or
                    ``(B) otherwise insured under the National Housing 
                Act and made for or in connection with a manufactured 
                home.''.

SEC. 1108. FEES.

    Section 620 (42 U.S.C. 5419) is amended to read as follows:

                     ``authority to establish fees

    ``Sec. 620. (a) In General.--In carrying out inspections under this 
title, in developing standards and regulations pursuant to section 604, 
and in facilitating the acceptance of the affordability and 
availability of manufactured housing within the Department, the 
Secretary may--
            ``(1) establish and collect from manufactured home 
        manufacturers such reasonable fees as may be necessary to 
        offset the expenses incurred by the Secretary in connection 
        with carrying out the responsibilities of the Secretary under 
        this title, including--
                    ``(A) conducting inspections and monitoring;
                    ``(B) providing funding to States for the 
                administration and implementation of approved State 
                plans under section 623, including reasonable funding 
                for cooperative educational and training programs 
                designed to facilitate uniform enforcement under this 
                title; these funds may be paid directly to the States 
                or may be paid or provided to any person or entity 
                designated to receive and disburse such funds by 
                cooperative agreements among participating States, 
                provided that such person or entity is not otherwise an 
                agent of the Secretary under this title;
                    ``(C) providing the funding for a noncareer 
                administrator and Federal staff personnel for the 
                manufactured housing program;
                    ``(D) administering the consensus committee as set 
                forth in section 604; and
                    ``(E) facilitating the acceptance of the quality, 
                durability, safety, and affordability of manufactured 
                housing within the Department; and
            ``(2) use any fees collected under paragraph (1) to pay 
        expenses referred to in paragraph (1), which shall be exempt 
        and separate from any limitations on the Department of Housing 
        and Urban Development regarding full-time equivalent positions 
        and travel.
    ``(b) Contractors.--When using fees under this section, the 
Secretary shall ensure that separate and independent contractors are 
retained to carry out monitoring and inspection work and any other work 
that may be delegated to a contractor under this title.
    ``(c) Prohibited Use.--Fees collected under subsection (a) shall 
not be used for any purpose or activity not specifically authorized by 
this title unless such activity was already engaged in by the Secretary 
prior to the date of enactment of this title.
    ``(d) Modification.--Any fee established by the Secretary under 
this section shall only be modified pursuant to rulemaking in 
accordance with section 553 of title 5, United States Code.
    ``(e) Appropriation and Deposit of Fees.--
            ``(1) In general.--There is established in the Treasury of 
        the United States a fund to be known as the `Manufactured 
        Housing Fees Trust Fund' for deposit of all fees collected 
        pursuant to subsection (a). These fees shall be held in trust 
        for use only as provided in this title.
            ``(2) Appropriation.--Such fees shall be available for 
        expenditure only to the extent approved in an annual 
        appropriation Act.''.

SEC. 1109. DISPUTE RESOLUTION.

    Section 623(c) (42 U.S.C. 5422(c)), as amended by section 5(b) of 
this Act, is amended by inserting after paragraph (11) (as added by 
section 5(b) of this Act) the following:
            ``(12) with respect to any State plan submitted on or after 
        the expiration of the 5-year period beginning on the date of 
        enactment of the Manufactured Housing Improvement Act, provides 
        for a dispute resolution program for the timely resolution of 
        disputes between manufacturers, retailers, and installers of 
        manufactured homes regarding responsibility, and for the 
        issuance of appropriate orders, for the correction or repair of 
        defects in manufactured homes that are reported during the 1-
        year period beginning on the date of installation; and''; and
            (2) by adding at the end the following:
    ``(g) Enforcement of Dispute Resolution Standards.--
            ``(1) Establishment of dispute resolution program.--Not 
        later than the expiration of the 5-year period beginning on the 
        date of enactment of the Manufactured Housing Improvement Act, 
        the Secretary shall establish a dispute resolution program that 
        meets the requirements of subsection (c)(12) for dispute 
        resolution in each State described in paragraph (2).
            ``(2) Implementation of dispute resolution program.--
        Beginning on the expiration of the 5-year period described in 
        paragraph (1), the Secretary shall implement the dispute 
        resolution program established under paragraph (1) in each 
        State that has not established a dispute resolution program 
        that meets the requirements of subsection (c)(12).
            ``(3) Contracting out of implementation.--In carrying out 
        paragraph (2), the Secretary may contract with an appropriate 
        agent to implement the dispute resolution program established 
        under that paragraph, except that such agent shall not be a 
        person or entity other than a government, nor an affiliate or 
        subsidiary of such a person or entity, that has entered into a 
        contract with the Secretary to implement any other regulatory 
        program under this title.''.

SEC. 1110. ELIMINATION OF ANNUAL REPORT REQUIREMENT.

    The Act is amended--
            (1) by striking section 626 (42 U.S.C. 5425); and
            (2) by redesignating sections 627 and 628 (42 U.S.C. 5426, 
        5401 note) as sections 626 and 627, respectively.

SEC. 1111. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
enactment of this Act, except that the amendments shall have no effect 
on any order or interpretative bulletin that is published as a proposed 
rule pursuant to section 553 of title 5, United States Code, on or 
before such date.

SEC. 1112. SAVINGS PROVISION.

    (a) Standards and Regulations.--The Federal manufactured home 
construction and safety standards (as such term is defined in section 
603 of the National Manufactured Housing Construction and Safety 
Standards Act of 1974) and all regulations pertaining thereto in effect 
immediately before the date of the enactment of this Act shall apply 
until the effective date of a standard or regulation modifying or 
superseding the existing standard or regulation which is promulgated 
under subsection (a) or (b) of section 604 of the National Manufactured 
Housing Construction and Safety Standards Act of 1974, as amended by 
this title.
    (b) Contracts.--Any contract awarded pursuant to a Request for 
Proposal issued before the date of enactment of this Act shall remain 
in effect for a period of 2 years from the date of enactment of this 
Act or for the remainder of the contract term, whichever period is 
shorter.
```