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
IB

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. DIAZBALART, 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 Wash-
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ington, 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.

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

5 ‘‘American Homeownership and Economic Opportunity

6 Act of 2000’’.

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

8 this Act is as follows:

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.
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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.
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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.
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1 SEC. 2. FINDINGS AND PURPOSE.

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

3 (1) the priorities of our Nation should include

4 expanding homeownership opportunities by providing

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

6 healthy;

7 (2) our Nation has an abundance of conventional

8 capital sources available for homeownership financ9 ing;

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

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

14 assist their citizens in realizing the American dream

15 of homeownership; and

16 (4) each consumer should be afforded every rea17 sonable opportunity to access mortgage credit, to ob18 tain the lowest cost mortgages for which the consumer

19 can qualify, to know the true cost of the mortgage, to

20 be free of regulatory burdens, and to know what fac21 tors underlie a lender’s decision regarding the con22 sumer’s mortgage.

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

24 (1) to encourage and facilitate homeownership by

25 families in the United States who are not otherwise

26 able to afford homeownership; and
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1 (2) to expand homeownership through policies

2 that—

3 (A) promote the ability of the private sector

4 to produce affordable housing without excessive

5 government regulation;

6 (B) encourage tax incentives, such as the

7 mortgage interest deduction, at all levels of gov8 ernment; and

9 (C) facilitate the availability of flexible cap10 ital for homeownership opportunities and pro11 vide local governments with increased flexibility

12 under existing Federal programs to facilitate

13 homeownership.

14 TITLE I—REMOVAL OF BARRIERS

15 TO HOUSING AFFORDABILITY

16 SEC. 101. SHORT TITLE.

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

18 Barrier Removal Act of 2000’’.

19 SEC. 102. HOUSING IMPACT ANALYSIS.

20 (a) APPLICABILITY.—Except as provided in subsection

21 (b), the requirements of this section shall apply with respect

22 to—

23 (1) any proposed rule, unless the agency promul24 gating the rule—
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1 (A) has certified that the proposed rule will

2 not, if given force or effect as a final rule, have

3 a significant deleterious impact on housing af4 fordability; and

5 (B) has caused such certification to be pub6 lished in the Federal Register at the time of pub7 lication of general notice of proposed rulemaking

8 for the rule, together with a statement providing

9 the factual basis for the certification; and

10 (2) any final rule, unless the agency promul11 gating the rule—

12 (A) has certified that the rule will not, if

13 given force or effect, have a significant delete14 rious impact on housing affordability; and

15 (B) has caused such certification to be pub16 lished in the Federal Register at the time of pub17 lication of the final rule, together with a state18 ment providing the factual basis for the certifi19 cation.

20 Any agency making a certification under this subsection

21 shall provide a copy of such certification and the statement

22 providing the factual basis for the certification to the Sec23 retary of Housing and Urban Development.
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1 (b) EXCEPTION FOR CERTAIN BANKING RULES.—The

2 requirements of this section shall not apply to any proposed

3 or final rule relating to—

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

5 (A) federally insured depository institutions

6 or any affiliate of such an institution (as such

7 term is defined in section 2(k) of the Bank Hold8 ing Company Act of 1956 (12 U.S.C. 1841(k));

9 (B) credit unions;

10 (C) the Federal home loan banks;

11 (D) the enterprises (as such term is defined

12 in section 1303 of the Housing and Community

13 Development Act of 1992 (12 U.S.C. 4502);

14 (E) a Farm Credit System institution; or

15 (F) foreign banks or their branches, agen16 cies, commercial lending companies, or rep17 resentative offices that operate in the United

18 States, or any affiliate of a foreign bank (as such

19 terms are defined in section 1 of the Inter20 national Banking Act of 1978 (12 U.S.C. 3101);

21 or

22 (2) the payments system or the protection of de23 posit insurance funds or the Farm Credit Insurance

24 Fund.
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1 (c) STATEMENT OF PROPOSED RULEMAKING.—When2 ever an agency publishes general notice of proposed rule3 making for any proposed rule, unless the agency has made

4 a certification under subsection (a), the agency shall—

5 (1) in the notice of proposed rulemaking—

6 (A) state with particularity the text of the

7 proposed rule; and

8 (B) request any interested persons to submit

9 to the agency any written analyses, data, views,

10 and arguments, and any specific alternatives to

11 the proposed rule that—

12 (i) accomplish the stated objectives of

13 the applicable statutes, in a manner com14 parable to the proposed rule;

15 (ii) result in costs to the Federal Gov16 ernment equal to or less than the costs re17 sulting from the proposed rule; and

18 (iii) result in housing affordability

19 greater than the housing affordability re20 sulting from the proposed rule;

21 (2) provide an opportunity for interested persons

22 to take the actions specified under paragraph (1)(B)

23 before promulgation of the final rule; and
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1 (3) prepare and make available for public com2 ment an initial housing impact analysis in accord3 ance with the requirements of subsection (d).

4 (d) INITIAL HOUSING IMPACT ANALYSIS.—

5 (1) REQUIREMENTS.—Each initial housing im6 pact analysis shall describe the impact of the pro7 posed rule on housing affordability. The initial hous8 ing impact analysis or a summary shall be published

9 in the Federal Register at the same time as, and to10 gether with, the publication of general notice of pro11 posed rulemaking for the rule. The agency shall trans12 mit a copy of the initial housing impact analysis to

13 the Secretary of Housing and Urban Development.

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

15 basis, the Secretary of Housing and Urban Develop16 ment shall cause to be published in the Federal Reg17 ister, and shall make available through a World Wide

18 Web site of the Department, a listing of all proposed

19 rules for which an initial housing impact analysis

20 was prepared during the preceding month.

21 (3) CONTENTS.—Each initial housing impact

22 analysis required under this subsection shall

23 contain—

24 (A) a description of the reasons why action

25 by the agency is being considered;
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1 (B) a succinct statement of the objectives of,

2 and legal basis for, the proposed rule;

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

4 estimate of the extent to which the proposed rule

5 would increase the cost or reduce the supply of

6 housing or land for residential development; and

7 (D) an identification, to the extent prac8 ticable, of all relevant Federal rules which may

9 duplicate, overlap, or conflict with the proposed

10 rule.

11 (e) PROPOSAL OF LESS DELETERIOUS ALTERNATIVE

12 RULE.—

13 (1) ANALYSIS.—The agency publishing a general

14 notice of proposed rulemaking shall review any spe15 cific analyses and alternatives to the proposed rule

16 which have been submitted to the agency pursuant to

17 subsection (c)(2) to determine whether any alternative

18 to the proposed rule—

19 (A) accomplishes the stated objectives of the

20 applicable statutes, in a manner comparable to

21 the proposed rule;

22 (B) results in costs to the Federal Govern23 ment equal to or less than the costs resulting

24 from the proposed rule; and
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1 (C) results in housing affordability greater

2 than the housing affordability resulting from the

3 proposed rule.

4 (2) NEW NOTICE OF PROPOSED RULEMAKING.—

5 If the agency determines that an alternative to the

6 proposed rule meets the requirements under subpara7 graphs (A) through (C) of paragraph (1), unless the

8 agency provides an explanation on the record for the

9 proposed rule as to why the alternative should not be

10 implemented, the agency shall incorporate the alter11 native into the final rule or, at the agency’s discre12 tion, issue a new proposed rule which incorporates the

13 alternative.

14 (f) FINAL HOUSING IMPACT ANALYSIS.—

15 (1) REQUIREMENT.—Whenever an agency pro16 mulgates a final rule after publication of a general

17 notice of proposed rulemaking, unless the agency has

18 made the certification under subsection (a), the agen19 cy shall prepare a final housing impact analysis.

20 (2) CONTENTS.—Each final housing impact

21 analysis shall contain—

22 (A) a succinct statement of the need for, and

23 objectives of, the rule;

24 (B) a summary of the significant issues

25 raised during the public comment period in re-
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1 sponse to the initial housing impact analysis, a

2 summary of the assessment of the agency of such

3 issues, and a statement of any changes made in

4 the proposed rule as a result of such comments;

5 and

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

7 extent to which the rule will impact housing af8 fordability or an explanation of why no such es9 timate is available.

10 (3) AVAILABILITY.—The agency shall make cop11 ies of the final housing impact analysis available to

12 members of the public and shall publish in the Fed13 eral Register such analysis or a summary thereof.

14 (g) AVOIDANCE OF DUPLICATIVE OR UNNECESSARY

15 ANALYSES.—

16 (1) DUPLICATION.—Any Federal agency may

17 perform the analyses required by subsections (d) and

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

19 agenda or analysis required by any other law, execu20 tive order, directive, or rule if such other analysis sat21 isfies the provisions of such subsections.

22 (2) JOINDER.—In order to avoid duplicative ac23 tion, an agency may consider a series of closely re24 lated rules as one rule for the purposes of subsections

25 (d) and (f).
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1 (h) PREPARATION OF ANALYSES.—In complying with

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

3 provide either a quantifiable or numerical description of

4 the effects of a proposed rule or alternatives to the proposed

5 rule, or more general descriptive statements if quantifica6 tion is not practicable or reliable.

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

8 subsections (d) and (f) do not alter in any manner stand9 ards otherwise applicable by law to agency action.

10 (j) PROCEDURE FOR WAIVER OR DELAY OF COMPLE11 TION.—

12 (1) INITIAL HOUSING IMPACT ANALYSIS.—An

13 agency head may waive or delay the completion of

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

15 publishing in the Federal Register, not later than the

16 date of publication of the final rule, a written find17 ing, with reasons therefor, that the final rule is being

18 promulgated in response to an emergency that makes

19 compliance or timely compliance with the provisions

20 of subsection (a) impracticable.

21 (2) FINAL HOUSING IMPACT ANALYSIS.—An

22 agency head may not waive the requirements of sub23 section (f). An agency head may delay the completion

24 of the requirements of subsection (f) for a period of

25 not more than 180 days after the date of publication
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1 in the Federal Register of a final rule by publishing

2 in the Federal Register, not later than such date of

3 publication, a written finding, with reasons therefor,

4 that the final rule is being promulgated in response

5 to an emergency that makes timely compliance with

6 the provisions of subsection (f) impracticable. If the

7 agency has not prepared a final housing impact anal8 ysis pursuant to subsection (f) within 180 days from

9 the date of publication of the final rule, such rule

10 shall lapse and have no force or effect. Such rule shall

11 not be repromulgated until a final housing impact

12 analysis has been completed by the agency.

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

14 following definitions shall apply:

15 (1) HOUSING AFFORDABILITY.—The term ‘‘hous16 ing affordability’’ means the quantity of housing that

17 is affordable to families having incomes that do not

18 exceed 150 percent of the median income of families

19 in the area in which the housing is located, with ad20 justments for smaller and larger families. For pur21 poses of this paragraph, area, median family income

22 for an area, and adjustments for family size shall be

23 determined in the same manner as such factors are

24 determined for purposes of section 3(b)(2) of the

25 United States Housing Act of 1937.
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1 (2) AGENCY.—The term ‘‘agency’’ means each

2 authority of the Government of the United States,

3 whether or not it is within or subject to review by an4 other agency, but does not include—

5 (A) the Congress;

6 (B) the courts of the United States;

7 (C) the governments of the territories or

8 possessions of the United States;

9 (D) the government of the District of Co10 lumbia;

11 (E) agencies composed of representatives of

12 the parties or of representatives of organizations

13 of the parties to the disputes determined by

14 them;

15 (F) courts-martial and military commis16 sions;

17 (G) military authority exercised in the field

18 in time of war or in occupied territory; or

19 (H) functions conferred by—

20 (i) sections 1738, 1739, 1743, and 1744

21 of title 12, United States Code;

22 (ii) chapter 2 of title 41, United States

23 Code;

24 (iii) subchapter II of chapter 471 of

25 title 49, United States Code; or
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1 (iv) sections 1884, 1891–1902, and

2 former section 1641(b)(2), of title 50, ap3 pendix, United States Code.

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

5 meaning given such term in section 3 of the United

6 States Housing Act of 1937.

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

8 which the agency publishes a general notice of pro9 posed rulemaking pursuant to section 553(b) of title

10 5, United States Code, or any other law, including

11 any rule of general applicability governing grants by

12 an agency to State and local governments for which

13 the agency provides an opportunity for notice and

14 public comment; except that such term does not in15 clude a rule of particular applicability relating to

16 rates, wages, corporate or financial structures or reor17 ganizations thereof, prices, facilities, appliances, serv18 ices, or allowances therefor or to valuations, costs or

19 accounting, or practices relating to such rates, wages,

20 structures, prices, appliances, services, or allowances.

21 (5) SIGNIFICANT.—The term ‘‘significant’’ means

22 increasing consumers’ cost of housing by more than

23 $100,000,000 per year.

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

25 date of the enactment of this title, the Secretary of Housing
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1 and Urban Development shall develop model initial and

2 final housing impact analyses under this section and shall

3 cause such model analyses to be published in the Federal

4 Register. The model analyses shall define the primary ele5 ments of a housing impact analysis to instruct other agen6 cies on how to carry out and develop the analyses required

7 under subsections (a) and (d).

8 (m) JUDICIAL REVIEW.—

9 (1) DETERMINATION BY AGENCY.—Except as oth10 erwise provided in paragraph (2), any determination

11 by an agency concerning the applicability of any of

12 the provisions of this title to any action of the agency

13 shall not be subject to judicial review.

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

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

16 and the compliance or noncompliance of the agency

17 with the provisions of this title shall not be subject to

18 judicial review. When an action for judicial review of

19 a rule is instituted, any housing impact analysis for

20 such rule shall constitute part of the whole record of

21 agency action in connection with the review.

22 (3) EXCEPTION.—Nothing in this subsection bars

23 judicial review of any other impact statement or

24 similar analysis required by any other law if judicial
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1 review of such statement or analysis is otherwise pro2 vided by law.

3 SEC. 103. GRANTS FOR REGULATORY BARRIER REMOVAL

4 STRATEGIES.

5 (a) AUTHORIZATION OF APPROPRIATIONS.—Sub6 section (a) of section 1204 of the Housing and Community

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

8 to read as follows:

9 ‘‘(a) FUNDING.—There is authorized to be appro10 priated for grants under subsections (b) and (c) $15,000,000

11 for fiscal year 2001 and such sums as may be necessary

12 for each of fiscal years 2002, 2003, 2004, and 2005.’’.

13 (b) CONSOLIDATION OF STATE AND LOCAL GRANTS.—

14 Subsection (b) of section 1204 of the Housing and Commu15 nity Development Act of 1992 (42 U.S.C. 12705c(b)) is

16 amended—

17 (1) in the subsection heading, by striking

18 ‘‘STATE GRANTS’’ and inserting ‘‘GRANT AUTHOR19 ITY’’;

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

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

22 general local government (including consortia of such

23 governments)’’;
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1 (3) in paragraph (3), by striking ‘‘a State pro2 gram to reduce State and local’’ and inserting ‘‘State,

3 local, or regional programs to reduce’’;

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

5 after ‘‘State’’; and

6 (5) in paragraph (5), by striking ‘‘State’’.

7 (c) REPEAL OF LOCAL GRANTS PROVISION.—Section

8 1204 of the Housing and Community Development Act of

9 1992 (42 U.S.C. 12705c) is amended by striking subsection

10 (c).

11 (d) APPLICATION AND SELECTION.—The last sentence

12 of section 1204(e) of the Housing and Community Develop13 ment Act of 1992 (42 U.S.C. 12705c(e)) is amended—

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

15 general local government to receive grants under sub16 section (f)(2)’’; and

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

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

19 amounts be used in a manner consistent with the

20 strategy contained in the comprehensive housing af21 fordability strategy for the jurisdiction pursuant to

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

23 Affordable Housing Act’’.
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1 (e) SELECTION OF GRANTEES.—Subsection (f) of sec2 tion 1204 of the Housing and Community Development Act

3 of 1992 (42 U.S.C. 12705c(f)) is amended to read as follows:

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

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

6 Secretary shall provide grants on a competitive basis to eli7 gible grantees based on the proposed uses of such amounts,

8 as provided in applications under subsection (e).’’.

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

10 the Housing and Community Development Act of 1974 (42

11 U.S.C. 5307(a)(1)) is amended—

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

13 after the semicolon at the end;

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

15 (3) by redesignating subparagraph (I) as sub16 paragraph (H).

17 SEC. 104. ELIGIBILITY FOR COMMUNITY DEVELOPMENT

18 BLOCK GRANTS.

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

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

21 5304(c)(1)) is amended by inserting before the comma the

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

23 to carry out the strategy established under section 105(b)(4)

24 of such Act by the unit of general local government to re25 move barriers to affordable housing’’.
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1 (b) RULE OF CONSTRUCTION.—The amendment made

2 by subsection (a) may not be construed to create any new

3 private right of action.

4 SEC. 105. REGULATORY BARRIERS CLEARINGHOUSE.

5 Section 1205 of the Housing and Community Develop6 ment Act of 1992 (42 U.S.C. 12705d) is amended—

7 (1) in subsection (a)—

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

9 by striking ‘‘receive, collect, process, and assem10 ble’’ and inserting ‘‘serve as a national reposi11 tory to receive, collect, process, assemble, and dis12 seminate’’;

13 (B) in paragraph (1)—

14 (i) by striking ‘‘, including’’ and in15 serting ‘‘(including’’; and

16 (ii) by inserting before the semicolon at

17 the end the following: ‘‘), and the prevalence

18 and effects on affordable housing of such

19 laws, regulations, and policies’’;

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

21 the semicolon the following: ‘‘, including particu22 larly innovative or successful activities, strate23 gies, and plans’’; and

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

25 the period at the end the following: ‘‘, including
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1 particularly innovative or successful strategies,

2 activities, and plans’’;

3 (2) in subsection (b)—

4 (A) in paragraph (1), by striking ‘‘and’’ at

5 the end;

6 (B) in paragraph (2), by striking the period

7 at the end and inserting ‘‘; and’’; and

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

9 paragraph:

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

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

12 otherwise, provide to each housing agency of a unit

13 of general local government that serves an area hav14 ing a population greater than 100,000, an index of

15 all State and local strategies and plans submitted

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

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

18 affordable housing that the strategy or plan was

19 designed to ameliorate or remove; and

20 ‘‘(B) shall, not later than 30 days after sub21 mission to the clearinghouse of any new strategy

22 or plan, be updated to include the new strategy

23 or plan submitted.’’; and

24 (3) by adding at the end the following new sub25 sections:
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1 ‘‘(c) ORGANIZATION.—The clearinghouse under this

2 section shall be established within the Office of Policy Devel3 opment of the Department of Housing and Urban Develop4 ment and shall be under the direction of the Assistant Sec5 retary for Policy Development and Research.

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

7 (as amended by section 105 of the Housing Affordability

8 Barrier Removal Act of 2000) shall be established and com9 mence carrying out the functions of the clearinghouse under

10 this section not later than 1 year after the date of the enact11 ment of such Act. The Secretary of Housing and Urban De12 velopment may comply with the requirements under this

13 section by reestablishing the clearinghouse that was origi14 nally established to comply with this section and updating

15 and improving such clearinghouse to the extent necessary

16 to comply with the requirements of this section as in effect

17 pursuant to the enactment of such Act.’’.
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1 TITLE II—HOMEOWNERSHIP

2 THROUGH MORTGAGE INSUR3 ANCE AND LOAN GUARAN4 TEES

5 SEC. 201. EXTENSION OF LOAN TERM FOR MANUFACTURED

6 HOME LOTS.

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

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

9 inserting ‘‘twenty’’.

10 SEC. 202. DOWNPAYMENT SIMPLIFICATION.

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

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

13 (1) in paragraph (2)—

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

15 matter that precedes clause (ii) an additional 2

16 ems from the left margin;

17 (B) in the matter that follows subparagraph

18 (B)(iii)—

19 (i) by striking the 6th sentence (relat20 ing to the increases for costs of solar energy

21 systems) and all that follows through the

22 end of the penultimate undesignated para23 graph; and

24 (ii) by striking the 2d and 3rd sen25 tences of such matter; and
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1 (C) by striking subparagraph (B);

2 (2) by transferring and inserting subparagraph

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

4 paragraph (2) and amending such subparagraph by

5 striking all of the matter that precedes clause (i) and

6 inserting the following:

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

8 sum of—’’;

9 (3) by transferring and inserting the last undes10 ignated paragraph of paragraph (2) (relating to dis11 closure notice) after subsection (e), realigning such

12 transferred paragraph so as to be flush with the left

13 margin, and amending such transferred paragraph by

14 inserting ‘‘(f) DISCLOSURE OF OTHER MORTGAGE

15 PRODUCTS.—’’ before ‘‘In conjunction’’;

16 (4) by transferring and inserting the sentence

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

18 the period at the end of the first sentence that follows

19 subparagraph (B) (relating to the definition of

20 ‘‘area’’); and

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

22 the preceding provisions this section).

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

24 National Housing Act (12 U.S.C. 1715z–10) is amended—
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1 (1) in subsection (a), by striking ‘‘, or if the

2 mortgagor’’ and all that follows through ‘‘case of vet3 erans’’; and

4 (2) in subsection (b)(3), by striking ‘‘, or, if the’’

5 and all that follows through ‘‘for veterans,’’.

6 SEC. 203. REDUCED DOWNPAYMENT REQUIREMENTS FOR

7 LOANS FOR TEACHERS AND UNIFORMED MU8 NICIPAL EMPLOYEES.

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

10 Housing Act (12 U.S.C. 1709(b)), as amended by section

11 202 of this Act, is further amended by adding at the end

12 the following new paragraph:

13 ‘‘(10) REDUCED DOWNPAYMENT REQUIREMENTS

14 FOR TEACHERS AND UNIFORMED MUNICIPAL EMPLOY15 EES.—

16 ‘‘(A) IN GENERAL.—Notwithstanding para17 graph (2), in the case of a mortgage described in

18 subparagraph (B)—

19 ‘‘(i) the mortgage shall involve a prin20 cipal obligation in an amount that does not

21 exceed the sum of 99 percent of the ap22 praised value of the property and the total

23 amount of initial service charges, appraisal,

24 inspection, and other fees (as the Secretary
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1 shall approve) paid in connection with the

2 mortgage;

3 ‘‘(ii) no other provision of this sub4 section limiting the principal obligation of

5 the mortgage based upon a percentage of the

6 appraised value of the property subject to

7 the mortgage shall apply; and

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

9 precedes the first proviso shall not apply

10 and the mortgage shall be executed by a

11 mortgagor who shall have paid on account

12 of the property at least 1 percent of the cost

13 of acquisition (as determined by the Sec14 retary) in cash or its equivalent.

15 ‘‘(B) MORTGAGES COVERED.—A mortgage

16 described in this subparagraph is a mortgage—

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

18 individual who—

19 ‘‘(I) is employed on a full-time

20 basis as (aa) a teacher or adminis21 trator in a public or private school

22 that provides elementary or secondary

23 education, as determined under State

24 law, except that secondary education

25 shall not include any education beyond
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1 grade 12, or (bb) a public safety officer

2 (as such term is defined in section

3 1204 of the Omnibus Crime Control

4 and Safe Streets Act of 1968 (42

5 U.S.C. 3796b), except that such term

6 shall not include any officer serving a

7 public agency of the Federal Govern8 ment); and

9 ‘‘(II) has not, during the 12-

10 month period ending upon the insur11 ance of the mortgage, had any present

12 ownership interest in a principal resi13 dence located in the jurisdiction de14 scribed in clause (ii); and

15 ‘‘(ii) made for a property that is lo16 cated within the jurisdiction of—

17 ‘‘(I) in the case of a mortgage of

18 a mortgagor described in clause

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

20 (as such term is defined in section

21 14101 of the Elementary and Sec22 ondary Education Act of 1965 (20

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

24 the mortgagor is employed (or, in the

25 case of a mortgagor employed in a pri-
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1 vate school, the local educational agen2 cy having jurisdiction for the area in

3 which the private school is located); or

4 ‘‘(II) in the case of a mortgage of

5 a mortgagor described in clause

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

7 public law enforcement agency, fire8 fighting agency, or rescue or ambu9 lance agency that employs the mort10 gagor.’’.

11 (b) DEFERRAL AND REDUCTION OF UP-FRONT PRE12 MIUM.—Section 203(c) of the National Housing Act (12

13 U.S.C. 1709(c)(2)) is amended—

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

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

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

17 and notwithstanding’’; and

18 (2) by adding at the end the following new para19 graph:

20 ‘‘(3) DEFERRAL AND REDUCTION OF UP-FRONT PRE21 MIUM.—In the case of any mortgage described in subsection

22 (b)(10)(B):

23 ‘‘(A) Paragraph (2)(A) of this subsection (relat24 ing to collection of up-front premium payments) shall

25 not apply.
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1 ‘‘(B) If, at any time during the 5-year period be2 ginning on the date of the insurance of the mortgage,

3 the mortgagor ceases to be employed as described in

4 subsection (b)(10)(B)(i)(I) or pays the principal obli5 gation of the mortgage in full, the Secretary shall at

6 such time collect a single premium payment in an

7 amount equal to the amount of the single premium

8 payment that, but for this paragraph, would have

9 been required under paragraph (2)(A) of this sub10 section with respect to the mortgage, as reduced by 20

11 percent of such amount for each successive 12-month

12 period completed during such 5-year period before

13 such cessation or prepayment occurs.’’.

14 SEC. 204. PREVENTING FRAUD IN REHABILITATION LOAN

15 PROGRAM.

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

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

18 the end the following new paragraph:

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

20 the program for loan insurance authorized under this sub21 section, the Secretary shall, by regulation, take the following

22 actions:

23 ‘‘(A) PROHIBITION OF IDENTITY OF INTEREST.—

24 The Secretary shall prohibit any identity-of-interest,

25 as such term is defined by the Secretary, between any
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1 of the following parties involved in a loan insured

2 under this subsection: the borrower (including, in the

3 case of a borrower that is a nonprofit organization,

4 any member of the board of directors or the staff of

5 the organization), the lender, any consultant, any real

6 estate agent, any property inspector, and any ap7 praiser. Nothing in this subparagraph may be con8 strued to prohibit or restrict, or authorize the Sec9 retary to prohibit or restrict, the functioning of a af10 filiated business arrangement that complies with the

11 requirements under section 8(c)(4) of the Real Estate

12 Settlement Procedures Act of 1974 (12 U.S.C.

13 2607(c)(4)).

14 ‘‘(B) NONPROFIT PARTICIPATION.—The Sec15 retary shall establish minimum standards for a non16 profit organization to participate in the program,

17 which shall include—

18 ‘‘(i) requiring such an organization to dis19 close to the Secretary its taxpayer identification

20 number and evidence sufficient to indicate that

21 the organization is an organization described in

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

23 1986 that is exempt from taxation under subtitle

24 A of such Code;
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1 ‘‘(ii) requiring that the board of directors of

2 such an organization be comprised only of indi3 viduals who do not receive any compensation or

4 other thing of value by reason of their service on

5 the board and who have no personal financial

6 interest in the rehabilitation project of the orga7 nization that is financed with the loan insured

8 under this subsection;

9 ‘‘(iii) requiring such an organization to

10 submit to the Secretary financial statements of

11 the organization for the most recent 2 years,

12 which have been prepared by a party that is un13 affiliated with the organization and is qualified

14 to prepare financial statements;

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

16 that are insured under this subsection, made to

17 any single such organization, and, at any one

18 time, have an outstanding balance of principal

19 or interest, except that the Secretary may in20 crease such numerical limitation on a case-by21 case basis for good cause shown; and

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

23 been certified by the Secretary as meeting the re24 quirements under this subsection and otherwise

25 eligible to participate in the program not more
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1 than 2 years before obtaining a loan insured

2 under this section.

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

4 shall prohibit any lender making a loan insured

5 under this subsection from disbursing the final pay6 ment of loan proceeds unless the lender has received

7 affirmation, from the borrower under the loan, both

8 in writing and pursuant to an interview in person

9 or over the telephone, that the rehabilitation activities

10 financed by the loan have been satisfactorily com11 pleted.

12 ‘‘(D) CONSULTANT STANDARDS.—The Secretary

13 shall require that any consultant, as such term is de14 fined by the Secretary, who is involved in a home in15 spection, site visit, or preparation of bids with respect

16 to any loan insured under this section shall meet such

17 standards established by the Secretary to ensure accu18 rate inspections and preparation of bids.

19 ‘‘(E) CONTRACTOR QUALIFICATION.—The Sec20 retary shall require, in the case of any loan that is

21 insured under this subsection and involves rehabilita22 tion with a cost of $25,000 or more, that the con23 tractor or other person performing or supervising the

24 rehabilitation activities financed by the loan shall—
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1 ‘‘(i) be certified by a nationally recognized

2 organization as meeting industry standards for

3 quality of workmanship, training, and con4 tinuing education, including financial manage5 ment;

6 ‘‘(ii) be licensed to conduct such activities

7 by the State or unit of general local government

8 in which the rehabilitation activities are being

9 completed; or

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

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

12 (b) REPORT ON ACTIVITY OF NONPROFIT ORGANIZA13 TIONS UNDER PROGRAM.—Not later than 60 days after the

14 date of the enactment of this Act, the Secretary of Housing

15 and Urban Development shall submit a report to the Con16 gress regarding the participation of nonprofit organizations

17 under the rehabilitation loan program under section 203(k)

18 of the National Housing Act (12 U.S.C. 1709(k)). The re19 port shall—

20 (1) determine and describe the extent of partici21 pation in the program by such organizations;

22 (2) identify and compare the default and claim

23 rates for loans made under the program to nonprofit

24 organizations and to owner-occupier participants;
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1 (3) analyze the impact, on such organizations

2 and the program, of prohibiting such organizations

3 from participating in the program; and

4 (4) identify other opportunities for such organi5 zations to acquire financing or credit enhancement

6 for rehabilitation activities.

7 (c) REGULATIONS.—The Secretary of Housing and

8 Urban Development shall issue final regulations and any

9 other administrative orders or notices necessary to carry

10 out the provisions of this section and the amendments made

11 by this section not later than 120 days after the date of

12 the enactment of this Act.

13 SEC. 205. NEIGHBORHOOD TEACHER PROGRAM.

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

15 ‘‘Neighborhood Teachers Act’’.

16 (b) CONGRESSIONAL FINDINGS.—The Congress finds

17 that—

18 (1) teachers are an integral part of our commu19 nities;

20 (2) other than families, teachers are often the

21 most important mentors to children, providing them

22 with the values and skills for self-fulfillment in adult

23 life; and

24 (3) the Neighborhood Teachers Act recognizes the

25 value teachers bring to community and family life
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1 and is designed to encourage and reward teachers

2 that serve in our most needy communities.

3 (c) DISCOUNT AND DOWNPAYMENT ASSISTANCE FOR

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

5 (12 U.S.C. 1710(h)) is amended—

6 (1) by redesignating paragraphs (7) through (10)

7 as paragraphs (8) through (11), respectively; and

8 (2) by inserting after paragraph (6) the fol9 lowing new paragraph:

10 ‘‘(7) 50 PERCENT DISCOUNT FOR TEACHERS PUR11 CHASING PROPERTIES THAT ARE ELIGIBLE ASSETS.—

12 ‘‘(A) DISCOUNT.—A property that is an eli13 gible asset and is sold, during fiscal years 2000

14 through 2004, to a teacher for use in accordance

15 with subparagraph (B) shall be sold at a price

16 that is equal to 50 percent of the appraised value

17 of the eligible property (as determined in accord18 ance with paragraph (6)(B)). In the case of a

19 property eligible for both a discount under this

20 paragraph and a discount under paragraph (6),

21 the discount under paragraph (6) shall not

22 apply.

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

24 property sold pursuant to a discount under this

25 paragraph shall be used, for not less than the 3-
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1 year period beginning upon such sale, as the pri2 mary residence of a teacher.

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

4 sell an eligible property pursuant to a discount

5 under this paragraph—

6 ‘‘(i) to a unit of general local govern7 ment or nonprofit organization (pursuant

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

9 transfer to a teacher; or

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

11 teacher.

12 ‘‘(D) RESALE.—In the case of any purchase

13 by a unit of general local government or non14 profit organization of an eligible property sold

15 at a discounted price under this paragraph, the

16 sale agreement under paragraph (8) shall—

17 ‘‘(i) require the purchasing unit of gen18 eral local government or nonprofit organi19 zation to provide the full benefit of the dis20 count to the teacher obtaining the property;

21 and

22 ‘‘(ii) in the case of a purchase involv23 ing multiple eligible assets, any of which is

24 such an eligible property, designate the spe25 cific eligible property or properties to be
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1 subject to the requirements of subparagraph

2 (B).

3 ‘‘(E) MORTGAGE DOWNPAYMENT ASSIST4 ANCE.—If a teacher purchases an eligible prop5 erty pursuant to a discounted sale price under

6 this paragraph and finances such purchase

7 through a mortgage insured under this title, not8 withstanding any provision of section 203 the

9 downpayment on such mortgage shall be $100.

10 ‘‘(F) PREVENTION OF UNDUE PROFIT.—The

11 Secretary shall issue regulations to prevent

12 undue profit from the resale of eligible properties

13 in violation of the requirement under subpara14 graph (B).

15 ‘‘(G) AWARENESS PROGRAM.—From funds

16 made available for salaries and expenses for the

17 Office of Policy Support of the Department of

18 Housing and Urban Development, each field of19 fice of the Department shall make available to el20 ementary schools and secondary schools within

21 the jurisdiction of the field office and to the

22 public—

23 ‘‘(i) a list of eligible properties located

24 within the jurisdiction of the field office
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1 that are available for purchase by teachers

2 under this paragraph; and

3 ‘‘(ii) other information designed to

4 make such teachers and the public aware of

5 the discount and downpayment assistance

6 available under this paragraph.

7 ‘‘(H) DEFINITIONS.—For the purposes of

8 this paragraph, the following definitions shall

9 apply:

10 ‘‘(i) The terms ‘elementary school’ and

11 ‘secondary school’ have the meanings given

12 such terms in section 14101 of the Elemen13 tary and Secondary Education Act of 1965

14 (20 U.S.C. 8801), except that, for purposes

15 of this paragraph, elementary education (as

16 used in such section) shall include pre-Kin17 dergarten education.

18 ‘‘(ii) The term ‘eligible property’

19 means an eligible asset described in para20 graph (2)(A) of this subsection.

21 ‘‘(iii) The term ‘teacher’ means an in22 dividual who is employed on a full-time

23 basis, in an elementary or secondary school,

24 as a State-certified classroom teacher or ad25 ministrator.’’.
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1 (d) CONFORMING AMENDMENTS.—Section 204(h) of

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

3 amended—

4 (1) in paragraph (4)(B)(ii), by striking ‘‘para5 graph (7)’’ and inserting ‘‘paragraph (8)’’;

6 (2) in paragraph (5)(B)(i), by striking ‘‘para7 graph (7)’’ and inserting ‘‘paragraph (8)’’; and

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

9 (8)’’ and inserting ‘‘paragraph (9)’’.

10 (e) REGULATIONS.—Not later than 90 days after the

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

12 regulations to implement the amendments made by this sec13 tion.

14 SEC. 206. COMMUNITY DEVELOPMENT FINANCIAL INSTITU15 TION RISK-SHARING DEMONSTRATION.

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

17 1715z–14) is amended—

18 (1) by striking the section heading and inserting

19 the following:

20 ‘‘RISK-SHARING DEMONSTRATION’’;

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

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

23 (3) in subsection (a)—

24 (A) in the first sentence, by striking ‘‘pri25 vate mortgage insurers’’ and inserting ‘‘insured
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1 community development financial institutions’’;

2 and

3 (B) in the second sentence—

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

5 ‘‘4’’; and

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

7 inserting ‘‘the expiration of the 5-year pe8 riod beginning on the date of the enactment

9 of the American Homeownership and Eco10 nomic Opportunity Act of 2000’’;

11 (4) in subsection (b)—

12 (A) by striking ‘‘private mortgage insurance

13 companies’’ each place such term appears and

14 inserting ‘‘insured community development fi15 nancial institutions’’;

16 (B) in the first sentence, by striking ‘‘which

17 have been determined to be qualified insurers

18 under section 302(b)(2)(C)’’;

19 (C) by striking paragraph (1) and inserting

20 the following new paragraph:

21 ‘‘(1) assume the first loss on any mortgage in22 sured pursuant to section 203(b), 234, or 245 that

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

24 in the program under this section, up to the percent-
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1 age of loss that is set forth in the risk-sharing con2 tract;’’; and

3 (D) in paragraph (2)—

4 (i) by striking ‘‘carry out (under ap5 propriate delegation) such’’ and inserting

6 ‘‘delegate underwriting,’’; and

7 (ii) by striking ‘‘function’’ and insert8 ing ‘‘functions’’;

9 (5) in subsection (c)—

10 (A) in the first sentence—

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

12 appears and insert ‘‘for’’;

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

14 and inserting ‘‘loss reserves’’; and

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

16 inserting ‘‘such reserves’’; and

17 (B) in the second sentence, by striking ‘‘pri18 vate mortgage insurance company’’ and insert19 ing ‘‘insured community development financial

20 institution’’;

21 (6) in subsection (d), by striking ‘‘private mort22 gage insurance company’’ and inserting ‘‘insured

23 community development financial institution’’; and

24 (7) by adding at the end the following new sub25 section:
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1 ‘‘(e) INSURED COMMUNITY DEVELOPMENT FINANCIAL

2 INSTITUTIONS.—For purposes of this section, the term ‘in3 sured community development financial institution’ means

4 a community development financial institution, as such

5 term is defined in section 103 of Reigle Community Devel6 opment and Regulatory Improvement Act of 1994 (12

7 U.S.C. 4702) that is an insured depository institution (as

8 such term is defined in section 3 of the Federal Deposit

9 Insurance Act (12 U.S.C. 1813)) or an insured credit union

10 (as such term is defined in section 101 of the Federal Credit

11 Union Act (12 U.S.C. 1752)).’’.

12 SEC. 207. HYBRID ARMS.

13 (a) IN GENERAL.—Section 251 of the National Hous14 ing Act (12 U.S.C. 1715z–16) is amended—

15 (1) in subsection (a), by inserting ‘‘IN GEN16 ERAL.—’’ after ‘‘(a)’’;

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

18 following new subsection:

19 ‘‘(b) DISCLOSURE.—In the case of any loan applica20 tion for a mortgage to be insured under any provision of

21 this section, the Secretary shall require that the prospective

22 mortgagee for the mortgage shall, at the time of loan appli23 cation, make available to the prospective mortgagor a writ24 ten explanation of the features of an adjustable rate mort25 gage consistent with the disclosure requirements applicable
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1 to variable rate mortgages secured by a principal dwelling

2 under the Truth in Lending Act (15 U.S.C. 1601 et seq.).’’;

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

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

5 (4) by adding at the end the following new sub6 section:

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

8 under this subsection a mortgage that—

9 ‘‘(1) has an effective rate of interest that shall

10 be—

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

12 first 3 years of the mortgage term;

13 ‘‘(B) initially adjusted by the mortgagee

14 upon the expiration of such period and annually

15 thereafter; and

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

17 adjustment, shall be subject to the limitation

18 under clause (2) of the last sentence of subsection

19 (a) (relating to prohibiting annual increases of

20 more than 1 percent) only if the interest rate re21 mains fixed for 5 or fewer years; and

22 ‘‘(2) otherwise meets the requirements for insur23 ance under subsection (a) that are not inconsistent

24 with the requirements under paragraph (1) of this

25 subsection.’’.
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1 (b) IMPLEMENTATION.—The Secretary of Housing and

2 Urban Development may implement section 251(d) of the

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

4 by subsection (a) of this section, in advance of rulemaking.

5 SEC. 208. HOME EQUITY CONVERSION MORTGAGES.

6 (a) INSURANCE FOR MORTGAGES TO REFINANCE EX7 ISTING HECMS.—

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

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

10 (A) by redesignating subsection (k) as sub11 section (m); and

12 (B) by inserting after subsection (j) the fol13 lowing new subsection:

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

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

16 application by a mortgagee, insure under this sub17 section any mortgage given to refinance an existing

18 home equity conversion mortgage insured under this

19 section.

20 ‘‘(2) ANTI-CHURNING DISCLOSURE.—The Sec21 retary shall, by regulation, require that the mortgagee

22 of a mortgage insured under this subsection, provide

23 to the mortgagor, within an appropriate time period

24 and in a manner established in such regulations, a

25 good faith estimate of: (A) the total cost of the refi-
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1 nancing; and (B) the increase in the mortgagor’s

2 principal limit as measured by the estimated initial

3 principal limit on the mortgage to be insured under

4 this subsection less the current principal limit on the

5 home equity conversion mortgage that is being refi6 nanced and insured under this subsection.

7 ‘‘(3) WAIVER OF COUNSELING REQUIREMENT.—

8 The mortgagor under a mortgage insured under this

9 subsection may waive the applicability, with respect

10 to such mortgage, of the requirements under sub11 section (d)(2)(B) (relating to third party counseling),

12 but only if—

13 ‘‘(A) the mortgagor has received the disclo14 sure required under paragraph (2);

15 ‘‘(B) the increase in the principal limit de16 scribed in paragraph (2) exceeds the amount of

17 the total cost of refinancing (as described in such

18 paragraph) by an amount to be determined by

19 the Secretary; and

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

21 original home equity conversion mortgage that is

22 refinanced through the mortgage insured under

23 this subsection and the application for a refi24 nancing mortgage insured under this subsection

25 does not exceed 5 years.
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1 ‘‘(4) CREDIT FOR PREMIUMS PAID.—Notwith2 standing section 203(c)(2)(A), the Secretary may re3 duce the amount of the single premium payment oth4 erwise collected under such section at the time of the

5 insurance of a mortgage refinanced and insured

6 under this subsection. The amount of the single pre7 mium for mortgages refinanced under this subsection

8 shall be determined by the Secretary based on the ac9 tuarial study required under paragraph (5).

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

11 days after the date of the enactment of the American

12 Homeownership and Economic Opportunity Act of

13 2000, the Secretary shall conduct an actuarial anal14 ysis to determine the adequacy of the insurance pre15 miums collected under the program under this sub16 section with respect to—

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

18 payment collected at the time of the insurance of

19 a mortgage refinanced and insured under this

20 subsection;

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

22 limit on the benefits of insurance under sub23 section (g) (relating to limitation on insurance

24 authority); and
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1 ‘‘(C) the combined effect of reduced insur2 ance premiums and a single national limitation

3 on insurance authority.

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

5 on the origination fee that may be charged to a mort6 gagor under a mortgage insured under this sub7 section, except that such limitation shall provide that

8 the origination fee may be fully financed with the

9 mortgage and shall include any fees paid to cor10 respondent mortgagees approved by the Secretary. The

11 Secretary shall prohibit the charging of any broker

12 fees in connection with mortgages insured under this

13 subsection.’’.

14 (2) REGULATIONS.—The Secretary shall issue

15 any final regulations necessary to implement the

16 amendments made by paragraph (1) of this sub17 section, which shall take effect not later than the expi18 ration of the 180-day period beginning on the date of

19 the enactment of this Act. The regulations shall be

20 issued after notice and opportunity for public com21 ment in accordance with the procedure under section

22 553 of title 5, United States Code, applicable to sub23 stantive rules (notwithstanding subsections (a)(2),

24 (b)(B), and (d)(3) of such section).
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1 (b) HOUSING COOPERATIVES.—Section 255(b) of the

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

3 amended—

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

5 and

6 (2) by adding at the end the following new para7 graphs:

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

9 first mortgage or first lien on real estate, in fee sim10 ple, on all stock allocated to a dwelling in a residen11 tial cooperative housing corporation, or on a

12 leasehold—

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

14 years that is renewable; or

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

16 less than 10 years to run beyond the maturity

17 date of the mortgage.

18 ‘‘(5) FIRST MORTGAGE.—The term ‘first mort19 gage’ means such classes of first liens as are com20 monly given to secure advances on, or the unpaid

21 purchase price of, real estate or all stock allocated to

22 a dwelling unit in a residential cooperative housing

23 corporation, under the laws of the State in which the

24 real estate or dwelling unit is located, together with

25 the credit instruments, if any, secured thereby.’’.
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1 (c) WAIVER OF UP-FRONT PREMIUMS FOR MORT2 GAGES USED FOR COSTS OF LONG-TERM CARE INSURANCE

3 OR HEALTH CARE.—Section 255 of the National Housing

4 Act (12 U.S.C. 1715z–20) is amended by inserting after

5 subsection (k) (as added by subsection (a) of this section)

6 the following new subsection:

7 ‘‘(l) WAIVER OF UP-FRONT PREMIUMS.—

8 ‘‘(1) MORTGAGES TO FUND LONG-TERM CARE IN9 SURANCE.—In the case of any mortgage insured

10 under this section under which the total amount (ex11 cept as provided in paragraph (3)) of all future pay12 ments described in subsection (b)(3) will be used only

13 for costs of a qualified long-term care insurance con14 tract (as such term is defined in section 7702B of the

15 Internal Revenue Code of 1986 (26 U.S.C. 7702B))

16 that covers the mortgagor or members of the household

17 residing in the property that is subject to the mort18 gage, notwithstanding section 203(c)(2), the Secretary

19 shall not charge or collect the single premium pay20 ment otherwise required under subparagraph (A) of

21 such section to be paid at the time of insurance.

22 ‘‘(2) MORTGAGES TO FUND HEALTH CARE

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

24 this section under which the future payments de25 scribed in subsection (b)(3) will be used only for costs
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1 for health care services (as such term is defined by the

2 Secretary) for the mortgagor or members of the house3 hold residing in the property that is subject to the

4 mortgage and comply with limitations on such pay5 ments, as shall be established by the Secretary and

6 based upon the purposes of this subsection and the ac7 cumulated equity of the mortgagor in the property,

8 notwithstanding section 203(c)(2), the Secretary shall

9 not charge or collect the single premium payment oth10 erwise required under subparagraph (A) of such sec11 tion to be paid at the time of insurance.

12 ‘‘(3) AUTHORITY TO REFINANCE EXISTING MORT13 GAGE AND FINANCE CLOSING COSTS.—A mortgage de14 scribed in paragraphs (1) or (2) may provide financ15 ing of amounts that are used to satisfy outstanding

16 mortgage obligations (in accordance with such limita17 tions as the Secretary shall prescribe) any amounts

18 used for initial service charges, appraisal, inspection,

19 and other fees (as approved by the Secretary) in con20 nection with such mortgage, and the amount of future

21 payments described in subsection (b)(3) under the

22 mortgage shall be reduced accordingly.’’.

23 (d) STUDY OF SINGLE NATIONAL MORTGAGE LIMIT.—

24 The Secretary of Housing and Urban Development shall

25 conduct an actuarially based study of the effects of estab-
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1 lishing, for mortgages insured under section 255 of the Na2 tional Housing Act (12 U.S.C. 1715z–20), a single max3 imum mortgage amount limitation in lieu of applicability

4 of section 203(b)(2) of such Act (12 U.S.C. 1709(b)(2)). The

5 study shall—

6 (1) examine the effects of establishing such limi7 tation at different dollar amounts; and

8 (2) examine the effects of such various limita9 tions on—

10 (A) the risks to the General Insurance Fund

11 established under section 519 of such Act;

12 (B) the mortgage insurance premiums that

13 would be required to be charged to mortgagors to

14 ensure actuarial soundness of such Fund; and

15 (C) take into consideration the various ap16 proaches to providing credit to borrowers who re17 finance home equity conversion mortgages in18 sured under section 255 of such Act.

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

20 this Act, the Secretary shall complete the study under this

21 subsection and submit a report describing the study and

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

23 Financial Services of the House of Representatives and to

24 the Committee on Banking, Housing, and Urban Affairs

25 of the Senate.
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1 SEC. 209. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP

2 PILOT PROGRAM.

3 (a) ASSISTANCE FOR LAW ENFORCEMENT OFFI4 CERS.—The Secretary of Housing and Urban Development

5 shall carry out a pilot program in accordance with this

6 section to assist Federal, State, and local law enforcement

7 officers purchasing homes in locally-designated high-crime

8 areas.

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

10 this section, a law enforcement officer shall—

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

12 service as a law enforcement officer as of the date that

13 the law enforcement officer applies for such assistance;

14 and

15 (2) agree, in writing, to use the residence pur16 chased with such assistance as the primary residence

17 of the law enforcement officer for not less than 3 years

18 after the date of purchase.

19 (c) MORTGAGE ASSISTANCE.—If a law enforcement of20 ficer purchases a home in locally-designated high-crime

21 area and finances such purchase through a mortgage in22 sured under title II of the National Housing Act (12 U.S.C.

23 1707 et seq.), notwithstanding any provision of section 203

24 or any other provision of the National Housing Act, the

25 following shall apply:

26 (1) DOWNPAYMENT.—
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1 (A) IN GENERAL.—There shall be no down2 payment required if the purchase price of the

3 property is not more than the reasonable value

4 of the property, as determined by the Secretary.

5 (B) PURCHASE PRICE EXCEEDS VALUE.—If

6 the purchase price of the property exceeds the

7 reasonable value of the property, as determined

8 by the Secretary, the required downpayment

9 shall be the difference between such reasonable

10 value and the purchase price.

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

12 origination fee for such mortgage may be included in

13 the loan amount.

14 (3) INSURANCE PREMIUM PAYMENT.—There shall

15 be 1 insurance premium payment due on the mort16 gage. Such insurance premium payment—

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

18 amount;

19 (B) shall be due and considered earned by

20 the Secretary at the time of the loan closing; and

21 (C) may be included in the loan amount

22 and paid from the loan proceeds.

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

24 (1) IN GENERAL.—Any unit of local government

25 may request that the Secretary designate any area
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1 within the jurisdiction of that unit of local govern2 ment as a locally-designated high-crime area for pur3 poses of this section if the proposed area—

4 (A) has a crime rate that is significantly

5 higher than the crime rate of the non-designated

6 area that is within the jurisdiction of the unit

7 of local government; and

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

9 25 percent of the total population of area within

10 the jurisdiction of the unit of local government.

11 (2) DEADLINE FOR CONSIDERATION OF RE12 QUEST.—Not later than 60 days after receiving a re13 quest under paragraph (1), the Secretary shall ap14 prove or disapprove the request.

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

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

17 meaning as the Secretary shall provide, except that such

18 term shall include any individual who is employed as an

19 officer in a correctional institution.

20 (f) SUNSET.—The Secretary shall not approve any ap21 plication for assistance under this section that is received

22 by the Secretary after the expiration of the 3-year period

23 beginning on the date that the Secretary first makes avail24 able assistance under the pilot program under this section.
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1 SEC. 210. STUDY OF MANDATORY INSPECTION REQUIRE2 MENT UNDER SINGLE FAMILY HOUSING

3 MORTGAGE INSURANCE PROGRAM.

4 The Comptroller General of the United States shall

5 conduct a study regarding the inspection of properties pur6 chased with loans insured under section 203 of the National

7 Housing Act. The study shall evaluate the following issues:

8 (1) The feasibility of requiring inspections of all

9 properties purchased with loans insured under such

10 section.

11 (2) The level of financial losses or savings to the

12 Mutual Mortgage Insurance Fund that are likely to

13 occur if inspections are required on properties pur14 chased with loans insured under such section.

15 (3) The potential impact on the process of buy16 ing a home if inspections of properties purchased

17 with loans insured under such section are required,

18 including the process of buying a home in under19 served areas where losses to the Mutual Mortgage In20 surance Fund are greatest.

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

22 homes purchased with loans insured under such sec23 tion that are inspected before purchase and such

24 homes that are not inspected before purchase.
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1 (5) The cost to homebuyers of requiring inspec2 tions before purchase of properties with loans insured

3 under such section.

4 (6) The extent, if any, to which requiring inspec5 tions of properties purchased with loans insured

6 under such section will result in adverse selection of

7 loans insured under such section.

8 (7) The extent of homebuyer knowledge regarding

9 property inspections and the extent to which such

10 knowledge affects the decision of homebuyers to opt for

11 or against having a property inspection before pur12 chasing a home.

13 (8) The impact of the Homebuyer Protection

14 Plan implemented by the Department of Housing and

15 Urban Development on the number of appraisers au16 thorized to appraise homes with mortgages insured

17 under section 203 of the National Housing Act.

18 (9) The cost to homebuyers incurred as a result

19 of the Homebuyer Protection plan, taking into consid20 eration, among other factors, an increase in appraisal

21 fees.

22 (10) The benefit or adverse impact of the Home23 buyer Protection Plan on minority homebuyers.

24 (11) The extent to which the appraisal require25 ments of the Homebuyer Protection Plan conflict with
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1 State laws regarding appraisals and home inspec2 tions.

3 Not later than the expiration of the 1-year period be4 ginning on the date of the enactment of this Act, the Comp5 troller General shall submit to the Congress a report con6 taining the results of the study and any recommendations

7 with respect to the issues specified under this section.

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

9 PROGRAM.

10 (a) IN GENERAL.—Not later than 1 year after the date

11 of the enactment of this Act, the Secretary of Housing and

12 Urban Development shall submit a report to the Congress

13 containing recommendations for improvements to the prop14 erty improvement loan insurance program under title I of

15 the National Housing Act, including improvements de16 signed to address problems relating to home improvement

17 contractors obtaining loans on behalf of homeowners.

18 (b) CONSULTATION.—In developing and determining

19 recommendations for inclusion in the report under this sec20 tion and in preparing the report, the Secretary shall consult

21 with interested persons, organizations, and entities, includ22 ing representatives of the lending industry, the home im23 provement industry, and consumer organizations.
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1 TITLE III—SECTION 8

2 HOMEOWNERSHIP OPTION

3 SEC. 301. DOWNPAYMENT ASSISTANCE.

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

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

6 (1) by redesignating paragraph (7) as para7 graph (8); and

8 (2) by inserting after paragraph (6) the fol9 lowing new paragraph:

10 ‘‘(7) DOWNPAYMENT ASSISTANCE.—

11 ‘‘(A) AUTHORITY.—A public housing agency

12 may, in lieu of providing monthly assistance

13 payments under this subsection on behalf of a

14 family eligible for such assistance and at the dis15 cretion of the public housing agency, provide as16 sistance for the family in the form of a single

17 grant to be used only as a contribution toward

18 the downpayment required in connection with

19 the purchase of a dwelling for fiscal year 2000

20 and each fiscal year thereafter to the extent pro21 vided in advance in appropriations Acts.

22 ‘‘(B) AMOUNT.—The amount of a downpay23 ment grant on behalf of an assisted family may

24 not exceed the amount that is equal to the sum

25 of the assistance payments that would be made
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1 during the first year of assistance on behalf of

2 the family, based upon the income of the family

3 at the time the grant is to be made.’’.

4 (b) EFFECTIVE DATE.—The amendments made by sub5 section (a) shall take effect immediately after the amend6 ments made by section 555(c) of the Quality Housing and

7 Work Responsibility Act of 1998 take effect pursuant to

8 such section.

9 SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSIST10 ANCE FOR DISABLED FAMILIES.

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

12 tenant-based assistance on behalf of an eligible family under

13 section 8 of the United States Housing Act of 1937 (42

14 U.S.C. 1437f) may provide assistance for a disabled family

15 that purchases a dwelling unit (including a dwelling unit

16 under a lease-purchase agreement) that will be owned by

17 1 or more members of the disabled family and will be occu18 pied by the disabled family, if the disabled family—

19 (1) purchases the dwelling unit before the expira20 tion of the 3-year period beginning on the date that

21 the Secretary first implements the pilot program

22 under this section;

23 (2) demonstrates that the disabled family has in24 come from employment or other sources (including

25 public assistance), as determined in accordance with
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1 requirements of the Secretary, that is not less than

2 twice the payment standard established by the public

3 housing agency (or such other amount as may be es4 tablished by the Secretary);

5 (3) except as provided by the Secretary, dem6 onstrates at the time the disabled family initially re7 ceives tenant-based assistance under this section that

8 one or more adult members of the disabled family

9 have achieved employment for the period as the Sec10 retary shall require;

11 (4) participates in a homeownership and hous12 ing counseling program provided by the agency; and

13 (5) meets any other initial or continuing re14 quirements established by the public housing agency

15 in accordance with requirements established by the

16 Secretary.

17 (b) DETERMINATION OF AMOUNT OF ASSISTANCE.—

18 (1) IN GENERAL.—

19 (A) MONTHLY EXPENSES NOT EXCEEDING

20 PAYMENT STANDARD.—If the monthly home21 ownership expenses, as determined in accordance

22 with requirements established by the Secretary,

23 do not exceed the payment standard, the monthly

24 assistance payment shall be the amount by which

25 the homeownership expenses exceed the highest of
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1 the following amounts, rounded to the nearest

2 dollar:

3 (i) 30 percent of the monthly adjusted

4 income of the disabled family.

5 (ii) 10 percent of the monthly income

6 of the disabled family.

7 (iii) If the disabled family is receiving

8 payments for welfare assistance from a pub9 lic agency, and a portion of those payments,

10 adjusted in accordance with the actual

11 housing costs of the disabled family, is spe12 cifically designated by that agency to meet

13 the housing costs of the disabled family, the

14 portion of those payments that is so des15 ignated.

16 (B) MONTHLY EXPENSES EXCEED PAYMENT

17 STANDARD.—If the monthly homeownership ex18 penses, as determined in accordance with re19 quirements established by the Secretary, exceed

20 the payment standard, the monthly assistance

21 payment shall be the amount by which the appli22 cable payment standard exceeds the highest of the

23 amounts under clauses (i), (ii), and (iii) of sub24 paragraph (A).

25 (2) CALCULATION OF AMOUNT.—
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1 (A) LOW-INCOME FAMILIES.—A disabled

2 family that is a low-income family shall be eligi3 ble to receive 100 percent of the amount cal4 culated under paragraph (1).

5 (B) INCOME BETWEEN 81 AND 89 PERCENT

6 OF MEDIAN.—A disabled family whose income is

7 between 81 and 89 percent of the median for the

8 area shall be eligible to receive 66 percent of the

9 amount calculated under paragraph (1).

10 (C) INCOME BETWEEN 90 AND 99 PERCENT

11 OF MEDIAN.—A disabled family whose income is

12 between 90 and 99 percent of the median for the

13 area shall be eligible to receive 33 percent of the

14 amount calculated under paragraph (1).

15 (D) INCOME MORE THAN 99 PERCENT OF

16 MEDIAN.—A disabled family whose income is

17 more than 99 percent of the median for the area

18 shall not be eligible to receive assistance under

19 this section.

20 (c) INSPECTIONS AND CONTRACT CONDITIONS.—

21 (1) IN GENERAL.—Each contract for the pur22 chase of a dwelling unit to be assisted under this sec23 tion shall—
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1 (A) provide for pre-purchase inspection of

2 the dwelling unit by an independent profes3 sional; and

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

6 (2) ANNUAL INSPECTIONS NOT REQUIRED.—The

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

8 United States Housing Act of 1937 for annual inspec9 tions shall not apply to dwelling units assisted under

10 this section.

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

12 Secretary may—

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

14 family assisted under this section;

15 (2) provide assistance for a disabled family for

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

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

19 (3) modify the requirements of this section as the

20 Secretary determines to be necessary to make appro21 priate adaptations for lease-purchase agreements.

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

23 Secretary shall remit assistance payments under this sec24 tion directly to the mortgagee of the dwelling unit pur-
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1 chased by the disabled family receiving such assistance pay2 ments.

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

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

7 United States Housing Act of 1937.

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

9 United States Housing Act of 1937.

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

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

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

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

17 (5) Any other provisions of the United States

18 Housing Act of 1937 that are inconsistent with the

19 provisions of this section.

20 (g) REVERSION TO RENTAL STATUS.—

21 (1) NON-FHA MORTGAGES.—If a disabled family

22 receiving assistance under this section defaults under

23 a mortgage not insured under the National Housing

24 Act, the disabled family may not continue to receive

25 rental assistance under section 8 of the United States
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1 Housing Act of 1937 unless it complies with require2 ments established by the Secretary.

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

5 a mortgage may not receive assistance under this sec6 tion for occupancy of another dwelling unit owned by

7 1 or more members of the disabled family.

8 (3) EXCEPTION.—This subsection shall not apply

9 if the Secretary determines that the disabled family

10 receiving assistance under this section defaulted under

11 a mortgage due to catastrophic medical reasons or

12 due to the impact of a federally declared major dis13 aster or emergency.

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

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

16 regulations to implement this section. Such regulations may

17 not prohibit any public housing agency providing tenant18 based assistance on behalf of an eligible family under sec19 tion 8 of the United States Housing Act of 1937 from par20 ticipating in the pilot program under this section.

21 (i) DEFINITION OF DISABLED FAMILY.—For the pur22 poses of this section, the term ‘‘disabled family’’ has the

23 meaning given the term ‘‘person with disabilities’’ in sec24 tion 811(k)(2) of the Cranston-Gonzalez National Affordable

25 Housing Act (42 U.S.C. 8013(k)(2)).
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1 SEC. 303. FUNDING FOR PILOT PROGRAMS.

2 (a) AUTHORIZATION OF APPROPRIATIONS.—There is

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

4 2001 for assistance in connection with the existing home5 ownership pilot programs carried out under the demonstra6 tion program authorized under to section 555(b) of the

7 Quality Housing and Work Responsibility Act of 1998

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

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

10 available pursuant to this section shall be used only through

11 such homeownership pilot programs to provide, on behalf

12 of families participating in such programs, amounts for

13 downpayments in connection with dwellings purchased by

14 such families using assistance made available under section

15 8(y) of the United States Housing Act of 1937 (42 U.S.C.

16 1437f(y)). No such downpayment grant may exceed 20 per17 cent of the appraised value of the dwelling purchased with

18 assistance under such section 8(y).

19 (c) MATCHING REQUIREMENT.—The amount of assist20 ance made available under this section for any existing

21 homeownership pilot program may not exceed twice the

22 amount donated from sources other than this section for use

23 under the program for assistance described in subsection

24 (b). Amounts donated from other sources may include

25 amounts from State housing finance agencies and Neighbor26 hood Housing Services of America.
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1 TITLE IV—COMMUNITY

2 DEVELOPMENT BLOCK GRANTS

3 SEC. 401. REAUTHORIZATION.

4 (a) AUTHORIZATION OF APPROPRIATIONS.—The last

5 sentence of section 103 of the Housing and Community De6 velopment Act of 1974 (42 U.S.C. 5303) is amended to read

7 as follows: ‘‘For purposes of assistance under section 106,

8 there is authorized to be appropriated $4,900,000,000 for

9 fiscal year 2001 and such sums as may be necessary for

10 each of fiscal years 2002, 2003, 2004, and 2005.’’.

11 (b) ENTITLEMENT GRANTS.—

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

13 Housing and Community Development Act of 1974

14 (42 U.S.C. 5302(a)(5)(B)) is amended—

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

16 (B) by inserting before the period at the end

17 the following: ‘‘, or (II) has a population in its

18 unincorporated areas of not less than 450,000,

19 except that a town or township which is des20 ignated as a city pursuant to this subclause shall

21 have only its unincorporated areas considered as

22 a city for purposes of this title’’.

23 (2) TREATMENT AS SEPARATE FROM URBAN

24 COUNTIES.—Section 102(d) of the Housing and Com-
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1 munity Development Act of 1974 (42 U.S.C. 5302(d))

2 is amended—

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

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

5 paragraph:

6 ‘‘(2) Notwithstanding paragraph (1), a town or town7 ship that is classified as a city by reason of subclause (II)

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

9 eligibility for a grant under section 106(b)(1) from amounts

10 made available for a fiscal year beginning after the date

11 of the enactment of the American Homeownership and Eco12 nomic Opportunity Act of 2000, as an entity separate from

13 the urban county in which it is located.’’.

14 (3) ELIGIBILITY OF CERTAIN URBAN COUN15 TIES.—Section 102(a)(6) of the Housing and Commu16 nity Development Act of 1974 (42 U.S.C. 5302(a)(6))

17 is amended—

18 (1) in subparagraph (D)—

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

20 end;

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

22 the end and inserting ‘‘; or’’; and

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

24 clause:
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1 ‘‘(vii)(I) has consolidated its government

2 with one or more municipal governments, such

3 that within the county boundaries there are no

4 unincorporated areas, (II) has a population of

5 not less than 650,000, over which the consoli6 dated government has the authority to undertake

7 essential community development and housing

8 assistance activities, (III) for more than 10

9 years, has been classified as an entitlement area

10 for purposes of allocating and distributing funds

11 under section 106, and (IV) as of the date of the

12 enactment of this clause, has over 90 percent of

13 the county’s population within the jurisdiction of

14 the consolidated government.’’; and

15 (2) by adding at the end the following new sub16 paragraph:

17 ‘‘(F) Notwithstanding any other provision of this

18 paragraph, any county that was classified as an

19 urban county pursuant to subparagraph (A) for fiscal

20 year 1999, includes 10 cities each having a popu21 lation of less than 50,000, and has a population in

22 its unincorporated areas of 190,000 or more but less

23 than 200,000, shall thereafter remain classified as an

24 urban county.’’.
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1 SEC. 402. PROHIBITION OF SET-ASIDES.

2 Section 103 of the Housing and Community Develop3 ment Act of 1974 (42 U.S.C. 5303), as amended by section

4 401 of this Act, is further amended—

5 (1) by inserting after ‘‘SEC. 103.’’ the following:

6 ‘‘(a) IN GENERAL.—’’; and

7 (2) by adding at the end the following new sub8 section:

9 ‘‘(b) PROHIBITION OF SET-ASIDES.—Except as pro10 vided in paragraphs (1) and (2) of section 106(a) and sec11 tion 107, amounts appropriated pursuant to subsection (a)

12 of this section or otherwise to carry out this title (other than

13 section 108) shall be used only for formula-based grants al14 located pursuant to section 106 and may not be otherwise

15 used unless the provision of law providing for such other

16 use specifically refers to this subsection and specifically

17 states that such provision modifies or supersedes the provi18 sions of this subsection.’’.

19 SEC. 403. PUBLIC SERVICES CAP.

20 Section 105(a)(8) of the Housing and Community De21 velopment Act of 1974 (42 U.S.C. 5305(a)(8)) is amended

22 by striking ‘‘fiscal years 1993’’ and all that follows through

23 ‘‘unit of general local government’’ and inserting the fol24 lowing: ‘‘fiscal years 1993 through 2006 to the City of Los

25 Angeles, the County of Los Angeles, or any other unit of

26 general local government located in the County of Los Ange-
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1 les, such city, such county, or each such unit of general local

2 government, respectively,’’.

3 SEC. 404. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

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

5 Housing and Community Development Act of 1974 (42

6 U.S.C. 5305(a)) is amended—

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

8 the end;

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

10 the end and inserting a semicolon; and

11 (3) by inserting after paragraph (23) the fol12 lowing new paragraph:

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

14 and expand homeownership among uniformed em15 ployees (including policemen, firemen, and sanitation

16 and other maintenance workers) of, and teachers who

17 are employees of, the metropolitan city or urban

18 county (or an agency or school district serving such

19 city or county) receiving grant amounts under this

20 title pursuant to section 106(b) or the unit of general

21 local government (or an agency or school district serv22 ing such unit) receiving such grant amounts pursuant

23 to section 106(d), except that—

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

25 on behalf of such employees who are first-time
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1 homebuyers under the meaning given such term

2 in section 104(14) of the Cranston-Gonzalez Na3 tional Affordable Housing Act (42 U.S.C.

4 12704(14)), except that, for purposes of this

5 paragraph, such section shall be applied by sub6 stituting ‘section 105(a)(24) of the Housing and

7 Community Development Act of 1974’ for ‘title

8 II’;

9 ‘‘(B) notwithstanding section 102(a)(20)(B)

10 or any other provision of this title, such assist11 ance may be provided on behalf of such employ12 ees whose family incomes do not exceed—

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

14 of the area involved, as determined by the

15 Secretary with adjustments for smaller and

16 larger families; or

17 ‘‘(ii) with respect only to areas that the

18 Secretary determines have high housing

19 costs, taking into consideration median

20 house prices and median family incomes for

21 the area, 150 percent of the median income

22 of the area involved, as determined by the

23 Secretary with adjustments for smaller and

24 larger families;
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1 ‘‘(C) such assistance shall be used only for

2 acquiring principal residences for such employ3 ees, in a manner that involves obligating

4 amounts with respect to any particular mortgage

5 over a period of one year or less, by—

6 ‘‘(i) providing amounts for

7 downpayments on mortgages;

8 ‘‘(ii) paying reasonable closing costs

9 normally associated with the purchase of a

10 residence;

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

12 counseling relating to the financial and

13 other obligations of homeownership; or

14 ‘‘(iv) subsidizing mortgage interest

15 rates; and

16 ‘‘(D) any residence purchased using assist17 ance provided under this paragraph shall be sub18 ject to restrictions on resale that are—

19 ‘‘(i) established by the metropolitan

20 city, urban county, or unit of general local

21 government providing such assistance; and

22 ‘‘(ii) determined by the Secretary to be

23 appropriate to comply with subparagraphs

24 (A) and (B) of section 215(b)(3) of the

25 Cranston-Gonzalez National Affordable
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1 Housing Act (42 U.S.C. 12745(b)(3)), ex2 cept that, for purposes of this paragraph,

3 such subparagraphs shall be applied by sub4 stituting ‘section 105(a)(24) of the Housing

5 and Community Development Act of 1974’

6 for ‘this title’;’’.

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

8 Housing and Community Development Act of 1974 (42

9 U.S.C. 5305(c)) is amended by adding at the end the fol10 lowing new paragraph:

11 ‘‘(5) HOMEOWNERSHIP ASSISTANCE FOR MUNICIPAL

12 EMPLOYEES.—Notwithstanding any other provision of this

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

14 of this section shall be considered, for purposes of this title,

15 to benefit persons of low and moderate income and to be

16 directed toward the objective under section 101(c)(3).’’.

17 SEC. 405. TECHNICAL AMENDMENT RELATING TO

18 BROWNFIELDS.

19 Section 105(a) of the Housing and Community Devel20 opment Act of 1974 (42 U.S.C. 5305(a)), as amended by

21 section 404 of this Act, is further amended—

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

23 and inserting ‘‘; and’’; and

24 (2) by adding at the end the following new para25 graph:
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1 ‘‘(26) environmental cleanup and economic de2 velopment activities related to Brownfields projects in

3 conjunction with the appropriate environmental regu4 latory agencies.’’.

5 SEC. 406. INCOME ELIGIBILITY.

6 (a) IN GENERAL.—In addition to the exceptions grant7 ed pursuant to section 590 of the Quality Housing and

8 Work Responsibility Act of 1998 (42 U.S.C. 5301 note), the

9 Secretary of Housing and Urban Development shall, for not

10 less than 10 other jurisdictions that are metropolitan cities

11 or urban counties for purposes of title I of the Housing and

12 Community Development Act of 1974, grant exceptions not

13 later than 90 days after the date of the enactment of this

14 Act for such jurisdictions that provide that—

15 (1) for purposes of the HOME investment part16 nerships program under title II of the Cranston-Gon17 zalez National Affordable Housing Act, the limitation

18 based on percentage of median income that is appli19 cable under section 104(10), 214(1)(A), or

20 215(a)(1)(A) for any area of the jurisdiction shall be

21 the numerical percentage that is specified in such sec22 tion; and

23 (2) for purposes of the community development

24 block grant program under title I of the Housing and

25 Community Development Act of 1974, the limitation
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1 based on percentage of median income that is appli2 cable pursuant to section 102(a)(20) for any area

3 within the State or unit of general local government

4 shall be the numerical percentage that is specified in

5 subparagraph (A) of such section.

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

7 which to grant such exceptions, the Secretary shall consider

8 the relative median income of such jurisdictions and shall

9 give preference to jurisdictions with the highest housing

10 costs.

11 SEC. 407. HOUSING OPPORTUNITIES FOR PERSONS WITH

12 AIDS.

13 Section 863 of the Cranston-Gonzalez National Afford14 able Housing Act (42 U.S.C. 12912) is amended to read

15 as follows:

16 ‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

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

18 this subtitle $260,000,000 for fiscal year 2001 and such

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

20 2003, 2004, and 2005.’’.
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1 TITLE V—HOME INVESTMENT

2 PARTNERSHIPS PROGRAM

3 SEC. 501. REAUTHORIZATION.

4 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

5 205 of the Cranston-Gonzalez National Affordable Housing

6 Act (42 U.S.C. 12724) is amended to read as follows:

7 ‘‘SEC. 205. AUTHORIZATION.

8 ‘‘(a) IN GENERAL.—There is authorized to be appro9 priated to carry out this title $1,650,000,000 for fiscal year

10 2001 and such sums as may be necessary for each of fiscal

11 years 2002, 2003, 2004, and 2005, of which—

12 ‘‘(1) not more than $25,000,000 in each such fis13 cal year shall be for community housing partnership

14 activities authorized under section 233; and

15 ‘‘(2) not more than $15,000,000 in each such fis16 cal year shall be for activities in support of State and

17 local housing strategies authorized under subtitle C, of

18 which, in each of fiscal years 2001 and 2002,

19 $3,000,000 shall be for funding grants under section

20 246.

21 ‘‘(b) PROHIBITION OF SET-ASIDES.—Except as pro22 vided in subsection (a) of this section and section 217(a)(3),

23 amounts appropriated pursuant to subsection (a) of this

24 section or otherwise to carry out this title shall be used only

25 for formula-based grants allocated pursuant to section 217
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1 and may not be otherwise used unless the provision of law

2 providing for such other use specifically refers to this sub3 section and specifically states that such provision modifies

4 or supersedes the provisions of this subsection.’’.

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

6 the Cranston-Gonzalez National Affordable Housing Act (42

7 U.S.C. 12704(19)) is amended by adding at the end the fol8 lowing: ‘‘The term ‘city’ shall have the meaning given such

9 term in section 102(a)(5)(B) of such Act. A town or town10 ship that is classified as a city by reason of subclause (II)

11 of section 102(a)(5)(A)(B)(iii) of such Act shall be treated,

12 notwithstanding section 102(d)(1) of such Act, as an entity

13 separate from the urban county in which it is located for

14 purposes of allocation of amounts under section 217 of this

15 Act to units of general local government from amounts

16 made available for any fiscal year beginning after the date

17 of the enactment of the American Homeownership and Eco18 nomic Opportunity Act of 2000.’’.

19 (c) PILOT PROGRAM FOR DEVELOPING REGIONAL

20 HOUSING STRATEGIES.—Subtitle C of title II of the Cran21 ston-Gonzalez National Affordable Housing Act (42 U.S.C.

22 12781 et seq.) is amended by adding at the end the following

23 new section:
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1 ‘‘SEC. 246. PILOT PROGRAM FOR DEVELOPING COMPREHEN2 SIVE REGIONAL HOUSING AFFORDABILITY

3 STRATEGIES.

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

5 amounts made available for grants under this section, make

6 not more than 3 grants for each of fiscal years 2001 and

7 2002 to consortia of units of general local government de8 scribed in subsection (b) for costs of developing and imple9 menting comprehensive housing affordability strategies on

10 a regional basis.

11 ‘‘(b) ELIGIBLE CONSORTIA.—A consortium of units of

12 general local government described in this subsection is a

13 consortium that—

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

15 a unit of general local government for purposes of this

16 title; and

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

18 government; and

19 ‘‘(3) contains only units of general local govern20 ment that are geographically contiguous.

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

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

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

24 consortium described in subsection (b) that includes units

25 of general local government from 2 or more States.’’.
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1 SEC. 502. ELIGIBILITY OF LIMITED EQUITY COOPERATIVES

2 AND MUTUAL HOUSING ASSOCIATIONS.

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

4 the Cranston-Gonzalez National Affordable Housing Act (42

5 U.S.C. 12721(10)) is amended by inserting ‘‘mutual hous6 ing associations,’’ after ‘‘limited equity cooperatives,’’.

7 (b) DEFINITIONS.—Section 104 of the Cranston-Gon8 zalez National Affordable Housing Act (42 U.S.C. 12704)

9 is amended—

10 (1) by redesignating paragraph (23) as para11 graph (22);

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

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

14 and

15 (3) by adding at the end the following new para16 graphs:

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

18 means a cooperative housing corporation which, in a

19 manner determined by the Secretary to be acceptable,

20 restricts income eligibility of purchasers of member21 ship shares of stock in the cooperative corporation or

22 the initial and resale price of such shares, or both, so

23 that the shares remain available and affordable to

24 low-income families.

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

26 means a private entity that—
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1 ‘‘(A) is organized under State law;

2 ‘‘(B) is described in section 501(c) of the In3 ternal Revenue Code of 1986 and exempt from

4 taxation under section 501(a) of such Code;

5 ‘‘(C) owns, manages, and continuously de6 velops affordable housing by providing long-term

7 housing for low- and moderate-income families;

8 ‘‘(D) provides that eligible families who

9 purchase membership interests in the association

10 shall have a right to residence in a dwelling unit

11 in the housing during the period that they hold

12 such membership interest; and

13 ‘‘(E) provides for the residents of such hous14 ing to participate in the ongoing management of

15 the housing.’’.

16 (c) ELIGIBILITY.—Section 215 of the Cranston-Gon17 zalez National Affordable Housing Act (42 U.S.C. 12745)

18 is amended—

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

20 paragraph (4) the following:

21 ‘‘Housing that is owned by a limited equity cooperative or

22 a mutual housing association may be considered by a par23 ticipating jurisdiction to be housing for homeownership for

24 purposes of this title to the extent that ownership or mem-
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1 bership in such a cooperative or association, respectively,

2 constitutes homeownership under State or local laws.’’; and

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

4 following new paragraph:

5 ‘‘(6) LIMITED EQUITY COOPERATIVES AND MU6 TUAL HOUSING ASSOCIATIONS.—Housing that is

7 owned by a limited equity cooperative or a mutual

8 housing association may be considered by a partici9 pating jurisdiction to be rental housing for purposes

10 of this title to the extent that ownership or member11 ship in such a cooperative or association, respectively,

12 constitutes rental of a dwelling under State or local

13 laws.’’.

14 SEC. 503. ADMINISTRATIVE COSTS.

15 Section 212(c) of the Cranston-Gonzalez National Af16 fordable Housing Act (42 U.S.C. 12742(c)) is amended by

17 adding at the end the following new sentence: ‘‘A partici18 pating jurisdiction may use amounts made available under

19 this subsection for a fiscal year for administrative and

20 planning costs by amortizing the costs of administration

21 and planning activities under this subtitle over the entire

22 duration of such activities.’’.
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1 SEC. 504. LEVERAGING AFFORDABLE HOUSING INVEST2 MENT THROUGH LOCAL LOAN POOLS.

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

4 Cranston-Gonzalez National Affordable Housing Act (42

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

6 subsidies’’ the following: ‘‘, advances to provide reserves for

7 loan pools or to provide partial loan guarantees,’’.

8 (b) TIMELY INVESTMENT OF TRUST FUNDS.—Section

9 218(e) of the Cranston-Gonzalez National Affordable Hous10 ing Act (42 U.S.C. 12748) is amended to read as follows:

11 ‘‘(e) INVESTMENT WITHIN 15 DAYS.—

12 ‘‘(1) IN GENERAL.—The participating jurisdic13 tion shall, not later than 15 days after funds are

14 drawn from the jurisdiction’s HOME Investment

15 Trust Fund, invest such funds, together with any in16 terest earned thereon, in the affordable housing for

17 which the funds were withdrawn.

18 ‘‘(2) LOAN POOLS.—In the case of a partici19 pating jurisdiction that withdraws Trust Fund

20 amounts for investment in the form of an advance for

21 reserves or partial loan guarantees under a program

22 providing such credit enhancement for loans for af23 fordable housing, the amounts shall be considered to

24 be invested for purposes of paragraph (1) upon the

25 completion of both of the following actions:
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1 ‘‘(A) Control of the amounts is transferred

2 to the program.

3 ‘‘(B) The jurisdiction and the entity oper4 ating the program enter into a written agree5 ment that—

6 ‘‘(i) provides that such funds may be

7 used only in connection with such program;

8 ‘‘(ii) defines the terms and conditions

9 of the loan pool reserve or partial loan

10 guarantees; and

11 ‘‘(iii) provides that such entity shall

12 ensure that amounts from non-Federal

13 sources have been contributed, or are com14 mitted for contribution, to the pool avail15 able for loans for affordable housing that

16 will be backed by such reserves or loan

17 guarantees in an amount equal to 10 times

18 the amount invested from Trust Fund

19 amounts.’’.

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

21 Section 218(g) of the Cranston-Gonzalez National Afford22 able Housing Act (42 U.S.C. 12748(g)) is amended to read

23 as follows:

24 ‘‘(g) EXPIRATION OF RIGHT TO DRAW FUNDS.—
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1 ‘‘(1) IN GENERAL.—If any funds becoming avail2 able to a participating jurisdiction under this title

3 are not placed under binding commitment to afford4 able housing within 24 months after the last day of

5 the month in which such funds are deposited in the

6 jurisdiction’s HOME Investment Trust Fund, the ju7 risdiction’s right to draw such funds from the HOME

8 Investment Trust Fund shall expire. The Secretary

9 shall reduce the line of credit in the participating ju10 risdiction’s HOME Investment Trust Fund by the ex11 piring amount and shall reallocate the funds by for12 mula in accordance with section 217(d).

13 ‘‘(2) LOAN POOLS.—In the case of a partici14 pating jurisdiction that withdraws Trust Fund

15 amounts for investment in the manner provided

16 under subsection (e)(2), the amounts shall be consid17 ered to be placed under binding commitment to af18 fordable housing for purposes of paragraph (1) of this

19 subsection at the time that the amounts are obligated

20 for use under, and are subject to, a written agreement

21 described in subsection (e)(2)(B).’’.

22 (d) TREATMENT OF MIXED INCOME LOAN POOLS AS

23 AFFORDABLE HOUSING.—

24 (1) IN GENERAL.—Section 215 of the Cranston25 Gonzalez National Affordable Housing Act (42 U.S.C.
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1 12745) is amended by adding at the end the following

2 new subsection:

3 ‘‘(c) LOAN POOLS.—Notwithstanding subsections (a)

4 and (b), housing financed using amounts invested as pro5 vided in section 218(e)(2) shall qualify as affordable hous6 ing only if the housing complies with the following require7 ments:

8 ‘‘(1) In the case of housing that is for

9 homeownership—

10 ‘‘(A) of the units financed with amounts so

11 invested—

12 ‘‘(i) not less than 75 percent are prin13 cipal residences of owners whose families

14 qualify as low-income families—

15 ‘‘(I) in the case of a contract to

16 purchase existing housing, at the time

17 of purchase;

18 ‘‘(II) in the case of a lease-pur19 chase agreement for existing housing or

20 for housing to be constructed, at the

21 time the agreement is signed; or

22 ‘‘(III) in the case of a contract to

23 purchase housing to be constructed, at

24 the time the contract is signed;
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1 ‘‘(ii) all are principal residences of

2 owners whose families qualify as moderate3 income families—

4 ‘‘(I) in the case of a contract to

5 purchase existing housing, at the time

6 of purchase;

7 ‘‘(II) in the case of a lease-pur8 chase agreement for existing housing or

9 for housing to be constructed, at the

10 time the agreement is signed; or

11 ‘‘(III) in the case of a contract to

12 purchase housing to be constructed, at

13 the time the contract is signed; and

14 ‘‘(iii) all comply with paragraphs (3)

15 and (4) of subsection (b), except that para16 graph (3) shall be applied for purposes of

17 this clause by substituting ‘subsection

18 (c)(2)(B)’ and ‘low- and moderate-income

19 homebuyers’ for ‘paragraph (2)’ and ‘low20 income homebuyers’, respectively; and

21 ‘‘(B) units made available for purchase only

22 by families who qualify as low-income families

23 shall have an initial purchase price that com24 plies with the requirements of subsection (b)(1).
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1 ‘‘(2) In the case of housing that is for rental, the

2 housing—

3 ‘‘(A) complies with subparagraphs (D)

4 through (F) of subsection (a)(1);

5 ‘‘(B)(i) has not less than 75 percent of the

6 units occupied by households that qualify as low7 income families and is occupied only by house8 holds that qualify as moderate-income families;

9 or

10 ‘‘(ii) temporarily fails to comply with

11 clause (i) only because of increases in the in12 comes of existing tenants and actions satisfactory

13 to the Secretary are being taken to ensure that

14 all vacancies in the housing are being filled in

15 accordance with clause (i) until such noncompli16 ance is corrected; and

17 ‘‘(C) bears rents, in the case of units made

18 available for occupancy only by households that

19 qualify as low-income families, that comply with

20 the requirements of subsection (a)(1)(A).

21 Paragraphs (4) and (5) of subsection (a) shall apply

22 to housing that is subject to this subsection.’’.

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

25 12704), as amended by section 502 of this Act, is fur-
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1 ther amended by adding at the end the following new

2 paragraph:

3 ‘‘(28) The term ‘moderate income families’

4 means families whose incomes do not exceed the me5 dian income for the area, as determined by the Sec6 retary with adjustments for smaller and larger fami7 lies, except that the Secretary may establish income

8 ceilings higher or lower than the median income for

9 the area on the basis of the Secretary’s findings that

10 such variations are necessary because of prevailing

11 levels of construction costs or fair market rents, or un12 usually high or low family incomes.’’.

13 SEC. 505. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.

14 (a) ELIGIBLE ACTIVITIES.—Paragraph (2) of section

15 215(b) of the Cranston-Gonzalez National Affordable Hous16 ing Act (42 U.S.C. 12745(b)(2)) is amended to read as fol17 lows:

18 ‘‘(2) is the principal residence of an owner

19 who—

20 ‘‘(A) is a member of a family that qualifies

21 as a low-income family—

22 ‘‘(i) in the case of a contract to pur23 chase existing housing, at the time of pur24 chase;
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1 ‘‘(ii) in the case of a lease-purchase

2 agreement for existing housing or for hous3 ing to be constructed, at the time the agree4 ment is signed; or

5 ‘‘(iii) in the case of a contract to pur6 chase housing to be constructed, at the time

7 the contract is signed; or

8 ‘‘(B)(i) is a uniformed employee (which

9 shall include policemen, firemen, and sanitation

10 and other maintenance workers) or a teacher

11 who is an employee, of the participating juris12 diction (or an agency or school district serving

13 such jurisdiction) that is investing funds made

14 available under this subtitle to support home15 ownership of the residence; and

16 ‘‘(ii) is a member of a family whose income,

17 at the time referred to in clause (i), (ii), or (iii)

18 of subparagraph (A), as appropriate, and as de19 termined by the Secretary with adjustments for

20 smaller and larger families, does not exceed 115

21 percent of the median income of the area, except

22 that, with respect only to such areas that the

23 Secretary determines have high housing costs,

24 taking into consideration median house prices

25 and median family incomes for the area, such
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1 income limitation shall be 150 percent of the me2 dian income of the area, as determined by the

3 Secretary with adjustments for smaller and larg4 er families;’’.

5 (b) INCOME TARGETING.—Section 214(2) of the Cran6 ston-Gonzalez National Affordable Housing Act (42 U.S.C.

7 12744(2)) is amended by inserting before the semicolon the

8 following: ‘‘or families described in section 215(b)(2)(B)’’.

9 (c) ELIGIBLE INVESTMENTS.—Section 212(b) of the

10 Cranston-Gonzalez National Affordable Housing Act (42

11 U.S.C. 12742(b)) is amended by adding at the end the fol12 lowing new sentence: ‘‘Notwithstanding the preceding sen13 tence, in the case of homeownership assistance for residences

14 of owners described in section 215(b)(2)(B), funds made

15 available under this subtitle may only be invested (A) to

16 provide amounts for downpayments on mortgages, (B) to

17 pay reasonable closing costs normally associated with the

18 purchase of a residence, (C) to obtain pre- or post-purchase

19 counseling relating to the financial and other obligations

20 of homeownership, or (D) to subsidize mortgage interest

21 rates.’’.
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1 SEC. 506. USE OF SECTION 8 ASSISTANCE BY ‘‘GRAND-FAMI2 LIES’’ TO RENT DWELLING UNITS IN AS3 SISTED PROJECTS.

4 Section 215(a) of the Cranston-Gonzalez National Af5 fordable Housing Act (42 U.S.C. 12745(a)), as amended by

6 the preceding provisions of this Act, is further amended by

7 adding at the end the following new paragraph:

8 ‘‘(7) WAIVER OF QUALIFYING RENT.—

9 ‘‘(A) IN GENERAL.—For the purpose of pro10 viding affordable housing appropriate for fami11 lies described in subparagraph (B), the Secretary

12 may, upon the application of the project owner,

13 waive the applicability of subparagraph (A) of

14 paragraph (1) with respect to a dwelling unit

15 if—

16 ‘‘(i) the unit is occupied by such a

17 family, on whose behalf tenant-based assist18 ance is provided under section 8 of the

19 United States Housing Act of 1937 (42

20 U.S.C. 1437f);

21 ‘‘(ii) the rent for the unit is not greater

22 than the existing fair market rent for com23 parable units in the area, as established by

24 the Secretary under section 8 of the United

25 States Housing Act of 1937; and
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1 ‘‘(iii) the Secretary determines that the

2 waiver, together with waivers under this

3 paragraph for other dwelling units in the

4 project, will result in the use of amounts de5 scribed in clause (iii) in an effective man6 ner that will improve the provision of af7 fordable housing for such families.

8 ‘‘(B) ELIGIBLE FAMILIES.—A family de9 scribed in this subparagraph is a family that

10 consists of at least one elderly person (who is the

11 head of household) and one or more of such per12 son’s grand children, great grandchildren, great

13 nieces, great nephews, or great great grand14 children (as defined by the Secretary), but does

15 not include any parent of such grandchildren,

16 great grandchildren, great nieces, great nephews,

17 or great great grandchildren. Such term includes

18 any such grandchildren, great grandchildren,

19 great nieces, great nephews, or great great grand20 children who have been legally adopted by such

21 elderly person.’’.

22 SEC. 507. LOAN GUARANTEES.

23 Subtitle A of title II of the Cranston-Gonzalez National

24 Affordable Housing Act (42 U.S.C. 12741 et seq.) is amend25 ed by adding at the end the following new section:
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1 ‘‘SEC. 227. LOAN GUARANTEES.

2 ‘‘(a) AUTHORITY.—The Secretary may, upon such

3 terms and conditions as the Secretary may prescribe, guar4 antee and make commitments to guarantee, only to such

5 extent or in such amounts as provided in appropriations

6 Acts, the notes or other obligations issued by eligible partici7 pating jurisdictions or by public agencies designated by and

8 acting on behalf of eligible participating jurisdictions for

9 purposes of financing (including credit enhancements and

10 debt service reserves) the acquisition, new construction, re11 construction, or moderate or substantial rehabilitation of

12 affordable housing (including real property acquisition, site

13 improvement, conversion, and demolition), and other re14 lated expenses (including financing costs and relocation ex15 penses of any displaced persons, families, businesses, or or16 ganizations). Housing funded under this section shall meet

17 the requirements of this subtitle.

18 ‘‘(b) REQUIREMENTS.—Notes or other obligations

19 guaranteed under this section shall be in such form and

20 denominations, have such maturities, and be subject to such

21 conditions as may be prescribed by the Secretary. The Sec22 retary may not deny a guarantee under this section on the

23 basis of the proposed repayment period for the note or other

24 obligation, unless the period is more than 20 years or the

25 Secretary determines that the period otherwise causes the

26 guarantee to constitute an unacceptable financial risk.
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1 ‘‘(c) LIMITATION ON TOTAL NOTES AND OBLIGA2 TIONS.—The Secretary may not guarantee or make a com3 mitment to guarantee any note or other obligation if the

4 total outstanding notes or obligations guaranteed under this

5 section on behalf of the participating jurisdiction issuing

6 the note or obligation (excluding any amount defeased

7 under a contract entered into under subsection (e)(1))

8 would thereby exceed an amount equal to 5 times the

9 amount of the participating jurisdiction’s latest allocation

10 under section 217.

11 ‘‘(d) USE OF PROGRAM FUNDS.—Notwithstanding any

12 other provision of this subtitle, funds allocated to the par13 ticipating jurisdiction under this subtitle (including pro14 gram income derived therefrom) are authorized for use in

15 the payment of principal and interest due on the notes or

16 other obligations guaranteed pursuant to this section and

17 the payment of such servicing, underwriting, or other

18 issuance or collection charges as may be specified by the

19 Secretary.

20 ‘‘(e) SECURITY.—To assure the full repayment of notes

21 or other obligations guaranteed under this section, and pay22 ment of the issuance or collection charges specified by the

23 Secretary under subsection (d), and as a prior condition

24 for receiving such guarantees, the Secretary shall require
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1 the participating jurisdiction (and its designated public

2 agency issuer, if any) to—

3 ‘‘(1) enter into a contract, in a form acceptable

4 to the Secretary, for repayment of such notes or other

5 obligations and the other specified charges;

6 ‘‘(2) pledge as security for such repayment any

7 allocation for which the participating jurisdiction

8 may become eligible under this subtitle; and

9 ‘‘(3) furnish, at the discretion of the Secretary,

10 such other security as may be deemed appropriate by

11 the Secretary in making such guarantees, which may

12 include increments in local tax receipts generated by

13 the housing assisted under this section or disposition

14 proceeds from the sale of land or housing.

15 ‘‘(f) REPAYMENT AUTHORITY.—The Secretary may,

16 notwithstanding any other provision of this subtitle or any

17 other Federal, State, or local law, apply allocations pledged

18 pursuant to subsection (e) to any repayments due the

19 United States as a result of such guarantees.

20 ‘‘(g) FULL FAITH AND CREDIT.—The full faith and

21 credit of the United States is pledged to the payment of

22 all guarantees made under this section. Any such guarantee

23 made by the Secretary shall be conclusive evidence of the

24 eligibility of the notes or other obligations for such guar25 antee with respect to principal and interest, and the valid-
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1 ity of any such guarantee so made shall be incontestable

2 in the hands of a holder of the guaranteed obligations.

3 ‘‘(h) TAX STATUS.—With respect to any obligation

4 guaranteed pursuant to this section, the guarantee and the

5 obligation shall be designed in a manner such that the in6 terest paid on such obligation shall be included in gross in7 come for purposes of the Internal Revenue Code of 1986.

8 ‘‘(i) MONITORING.—The Secretary shall monitor the

9 use of guarantees under this section by eligible partici10 pating jurisdictions. If the Secretary finds that 50 percent

11 of the aggregate guarantee authority for any fiscal year has

12 been committed, the Secretary may impose limitations on

13 the amount of guarantees any 1 participating jurisdiction

14 may receive during that fiscal year.

15 ‘‘(j) GUARANTEE OF TRUST CERTIFICATES.—

16 ‘‘(1) AUTHORITY.—The Secretary may, upon

17 such terms and conditions as the Secretary deems ap18 propriate, guarantee the timely payment of the prin19 cipal of and interest on such trust certificates or other

20 obligations as may—

21 ‘‘(A) be offered by the Secretary or by any

22 other offeror approved for purposes of this sub23 section by the Secretary; and

24 ‘‘(B) be based on and backed by a trust or

25 pool composed of notes or other obligations guar-
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1 anteed or eligible for guarantee by the Secretary

2 under this section.

3 ‘‘(2) FULL FAITH AND CREDIT.—To the same ex4 tent as provided in subsection (g), the full faith and

5 credit of the United States is pledged to the payment

6 of all amounts which may be required to be paid

7 under any guarantee by the Secretary under this sub8 section.

9 ‘‘(3) SUBROGATION.—In the event the Secretary

10 pays a claim under a guarantee issued under this sec11 tion, the Secretary shall be subrogated fully to the

12 rights satisfied by such payment.

13 ‘‘(4) OTHER POWERS AND RIGHTS.—No State or

14 local law, and no Federal law, shall preclude or limit

15 the exercise by the Secretary of—

16 ‘‘(A) the power to contract with respect to

17 public offerings and other sales of notes, trust

18 certificates, and other obligations guaranteed

19 under this section, upon such terms and condi20 tions as the Secretary deems appropriate;

21 ‘‘(B) the right to enforce, by any means

22 deemed appropriate by the Secretary, any such

23 contract; and

24 ‘‘(C) the Secretary’s ownership rights, as

25 applicable, in notes, certificates or other obliga-
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1 tions guaranteed under this section, or consti2 tuting the trust or pool against which trust cer3 tificates or other obligations guaranteed under

4 this section are offered.

5 ‘‘(k) AGGREGATE LIMITATION.—The total amount of

6 outstanding obligations guaranteed on a cumulative basis

7 by the Secretary under this section shall not at any time

8 exceed $2,000,000,000.’’.

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

10 RESIDENCES.

11 (a) AUTHORITY.—The Secretary of Housing and

12 Urban Development shall carry out a pilot program under

13 this section under which covered jurisdictions may use

14 amounts described in subsection (b) to make loans to eligible

15 homebuyers for use as downpayments on 2- and 3-family

16 residences.

17 (b) COVERED ASSISTANCE.—Notwithstanding section

18 105 of the Housing and Community Development Act of

19 1974 (42 U.S.C. 5305) and section 212 of the Cranston20 Gonzalez National Affordable Housing Act (42 U.S.C.

21 12742), a covered jurisdiction may use amounts provided

22 to the jurisdiction pursuant to section 106(b) of the Housing

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

24 5406(b)) and amounts in the HOME Investment Trust

25 Fund for the jurisdiction for downpayment loans meeting
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1 the requirements of subsection (d) to homebuyers meeting

2 the requirements of subsection (c), but only to the extent

3 such jurisdictions agree to comply with the requirements

4 of this section, as the Secretary may require.

5 (c) ELIGIBLE HOMEBUYERS.—A homebuyer meets the

6 requirements of this subsection only if the homebuyer is an

7 individual or family—

8 (1) whose income does not exceed 80 percent of

9 the median family income for the area within which

10 the residence to be purchased with the downpayment

11 loan under subsection (d) is located; except that the

12 Secretary may, pursuant to a request by a covered ju13 risdiction demonstrating that the jurisdiction has

14 high housing costs (taking into consideration median

15 home prices and median family incomes for the area),

16 increase the percentage limitation under this para17 graph to not more than 110 percent of the median

18 family income for the area;

19 (2) who has successfully completed a program re20 garding the responsibilities and financial manage21 ment involved in homeownership and ownership of

22 rental property that is approved by the Secretary;

23 (3) has a satisfactory credit history and record

24 as a tenant of rental housing; and
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1 (4) who, if such individual or family has an in2 come that exceeds 80 percent of the median income for

3 the area, enters into a binding agreement to comply

4 with the requirements under subsection (e) (relating

5 to affordability of other dwelling units in the resi6 dence).

7 (d) NO-INTEREST DOWNPAYMENT LOANS.—A loan

8 meets the requirements of this subsection only if—

9 (1) the principal obligation of the loan—

10 (A) may be used only for a downpayment

11 for acquisition of a 2- or 3-family residence and

12 for closing costs and other costs payable at the

13 time of closing, as the Secretary shall provide;

14 and

15 (B) does not exceed the amount that is equal

16 to the sum of (i) 7 percent of the purchase price

17 of the residence, and (ii) such closing and other

18 costs;

19 (2) the borrower under the loan is paying, for

20 acquisition of the residence, at least 3 percent of the

21 cost of acquisition of the residence in cash or its

22 equivalent;

23 (3) the borrower under the loan will occupy a

24 dwelling unit in the residence purchased using the

25 loan as the principal residence of the borrower;
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1 (4) the loan terms—

2 (A) do not require the borrower to be pre3 qualified for a loan that finances the remainder

4 of the purchase price of a residence described in

5 paragraph (1)(A); and

6 (B) provide that the proceeds of the loan are

7 available for use (as provided in paragraph (1))

8 only during the 4-month period beginning upon

9 the making of the loan to the borrower and that

10 such proceeds shall revert to the covered jurisdic11 tion upon the conclusion of such period if the

12 borrower has not entered into a contract for pur13 chase of a residence meeting the requirements of

14 such paragraph before such conclusion, except

15 that the Secretary shall provide that covered ju16 risdictions may extend such 4-month period

17 under such circumstances as the Secretary shall

18 prescribe;

19 (5) the loan terms provide for repayment of the

20 principal obligation of the loan, without interest, at

21 such time as the covered jurisdiction may provide, ex22 cept that the principal obligation shall be imme23 diately repayable at the time that the borrower—

24 (A) transfers or sells the borrower’s owner25 ship interest in such residence or ceases to use
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1 the residence purchased with the loan proceeds as

2 his or her principal residence; or

3 (B) obtains a subsequent loan secured by

4 such residence or any equity of the borrower in

5 such residence, the proceeds of which are not used

6 to prepay or pay off the entire balance due on

7 the existing loan secured by such residence; or

8 (6) the loan terms provide that, upon sale of the

9 residence purchased with the proceeds of the loan, the

10 borrower shall repay to the covered jurisdiction (to11 gether with the principal obligation of the loan repay12 able pursuant to paragraph (5)(A)) an additional

13 amount that bears the same ratio to any increase in

14 the price of the residence upon such sale (compared

15 to the price paid for the residence upon purchase

16 using such loan) as the amount of the loan bears to

17 the purchase price paid for the residence in the pur18 chase using such loan; and

19 (7) the loan complies with such other require20 ments as the Secretary may prescribe.

21 (e) AFFORDABILITY OF RENTAL UNITS.—Any dwelling

22 units in the residence purchased using a loan provided pur23 suant to the authority under this section to a borrower de24 scribed in subsection (c)(4) of this section shall be used only

25 as rental dwelling units and shall be made available for
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1 rental only at a monthly rental price that does not exceed

2 the fair market rent under section 8(c)(2)(A) of the United

3 States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)), as

4 periodically adjusted, for a unit of the applicable size lo5 cated in the area in which the residence is located. Compli6 ance with this subsection shall be monitored and enforced

7 by the covered jurisdiction providing the amounts for the

8 downpayment loan under this section for the purchase of

9 such residence.

10 (f) DEFINITIONS.—For purposes of this section, the fol11 lowing definitions shall apply:

12 (1) COVERED JURISDICTION.—The term ‘‘covered

13 jurisdiction’’ means, with respect to a fiscal year—

14 (A) a metropolitan city or urban county

15 that receives a grant for such fiscal year pursu16 ant to section 106(b) of the Housing and Com17 munity Development Act of 1974 (42 U.S.C.

18 5306(b)); or

19 (B) a jurisdiction that is a participating

20 jurisdiction for such fiscal year for purposes of

21 the HOME Investment Partnerships Act (42

22 U.S.C. 12721 et seq.).

23 (2) SECRETARY.—The term ‘‘Secretary’’ means

24 the Secretary of Housing and Urban Development.
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1 TITLE VI—LOCAL

2 HOMEOWNERSHIP INITIATIVES

3 SEC. 601. REAUTHORIZATION OF NEIGHBORHOOD REIN4 VESTMENT CORPORATION.

5 Section 608(a)(1) of the Neighborhood Reinvestment

6 Corporation Act (42 U.S.C. 8107(a)(1)) is amended by

7 striking the first sentence and inserting the following:

8 ‘‘There is authorized to be appropriated to the corporation

9 to carry out this title $95,000,000 for fiscal year 2001 and

10 such sums as may be necessary for each of fiscal years 2002

11 through 2005. Of the amounts appropriated to the corpora12 tion for fiscal year 2001, $5,000,000 shall be available only

13 for the corporation to provide assistance under duplex

14 homeownership programs established before the date of the

15 enactment of the American Homeownership and Economic

16 Opportunity Act of 2000 through Neighborworks Home17 ownership Center pilot projects established before such date

18 of enactment.’’.

19 SEC. 602. HOMEOWNERSHIP ZONES.

20 Section 186 of the Housing and Community Develop21 ment Act of 1992 (42 U.S.C. 12898a) is amended to read

22 as follows:

23 ‘‘SEC. 186. HOMEOWNERSHIP ZONE GRANTS.

24 ‘‘(a) AUTHORITY.—The Secretary of Housing and

25 Urban Development may make grants to units of general
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1 local government to assist homeownership zones. Home2 ownership zones are contiguous, geographically defined

3 areas, primarily residential in nature, in which large-scale

4 development projects are designed to reclaim distressed

5 neighborhoods by creating homeownership opportunities for

6 low- and moderate-income families. Projects in homeowner7 ship zones are intended to serve as a catalyst for private

8 investment, business creation, and neighborhood revitaliza9 tion.

10 ‘‘(b) ELIGIBLE ACTIVITIES.—Amounts made available

11 under this section may be used for projects that include any

12 of the following activities in the homeownership zone:

13 ‘‘(1) Acquisition, construction, and rehabilita14 tion of housing.

15 ‘‘(2) Site acquisition and preparation, including

16 demolition, construction, reconstruction, or installa17 tion of public and other site improvements and utili18 ties directly related to the homeownership zone.

19 ‘‘(3) Direct financial assistance to homebuyers.

20 ‘‘(4) Homeownership counseling.

21 ‘‘(5) Relocation assistance.

22 ‘‘(6) Marketing costs, including affirmative mar23 keting activities.

24 ‘‘(7) Other project-related costs.
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1 ‘‘(8) Reasonable administrative costs (up to 5

2 percent of the grant amount).

3 ‘‘(9) Other housing-related activities proposed by

4 the applicant as essential to the success of the home5 ownership zone and approved by the Secretary.

6 ‘‘(c) APPLICATION.—To be eligible for a grant under

7 this section, a unit of general local government shall submit

8 an application for a homeownership zone grant in such

9 form and in accordance with such procedures as the Sec10 retary shall establish.

11 ‘‘(d) SELECTION CRITERIA.—The Secretary shall select

12 applications for funding under this section through a na13 tional competition, using selection criteria established by

14 the Secretary, which shall include—

15 ‘‘(1) the degree to which the proposed activities

16 will result in the improvement of the economic, social,

17 and physical aspects of the neighborhood and the lives

18 of its residents through the creation of new home19 ownership opportunities;

20 ‘‘(2) the levels of distress in the homeownership

21 zone as a whole, and in the immediate neighborhood

22 of the project for which assistance is requested;

23 ‘‘(3) the financial soundness of the plan for fi24 nancing homeownership zone activities;

25 ‘‘(4) the leveraging of other resources; and
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1 ‘‘(5) the capacity to successfully carry out the

2 plan.

3 ‘‘(e) GRANT APPROVAL AMOUNTS.—The Secretary may

4 establish a maximum amount for any grant for any fund5 ing round under this section. A grant may not be made

6 in an amount that exceeds the amount that the Secretary

7 determines is necessary to fund the project for which the

8 application is made.

9 ‘‘(f) PROGRAM REQUIREMENTS.—A homeownership

10 zone proposal shall—

11 ‘‘(1) provide for a significant number of new

12 homeownership opportunities that will make a visible

13 improvement in an immediate neighborhood;

14 ‘‘(2) not be inconsistent with such planning and

15 design principles as may be prescribed by the Sec16 retary;

17 ‘‘(3) be designed to stimulate additional invest18 ment in that area;

19 ‘‘(4) provide for partnerships with persons or en20 tities in the private and nonprofit sectors;

21 ‘‘(5) incorporate a comprehensive approach to re22 vitalization of the neighborhood;

23 ‘‘(6) establish a detailed time-line for commence24 ment and completion of construction activities; and
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1 ‘‘(7) provide for affirmatively furthering fair

2 housing.

3 ‘‘(g) INCOME TARGETING.—At least 51 percent of the

4 homebuyers assisted with funds under this section shall have

5 household incomes at or below 80 percent of median income

6 for the area, as determined by the Secretary.

7 ‘‘(h) ENVIRONMENTAL REVIEW.—For purposes of envi8 ronmental review, decisionmaking, and action pursuant to

9 the National Environmental Policy Act of 1969 and other

10 provisions of law that further the purposes of such Act, a

11 grant under this section shall be treated as assistance under

12 the HOME Investment Partnerships Act and shall be sub13 ject to the regulations issued by the Secretary to implement

14 section 288 of such Act.

15 ‘‘(i) REVIEW, AUDIT, AND REPORTING.—The Secretary

16 shall make such reviews and audits and establish such re17 porting requirements as may be necessary or appropriate

18 to determine whether the grantee has carried out its activi19 ties in a timely manner and in accordance with the require20 ments of this section. The Secretary may adjust, reduce, or

21 withdraw amounts made available, or take other action as

22 appropriate, in accordance with the Secretary’s perform23 ance reviews and audits under this section.

24 ‘‘(j) AUTHORIZATION.—There is authorized to be ap25 propriated to carry out this section $25,000,000 for fiscal
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1 year 2001 and such sums as may be necessary for fiscal

2 year 2002, to remain available until expended.’’.

3 SEC. 603. LEASE-TO-OWN.

4 (a) SENSE OF CONGRESS.—It is the sense of the Con5 gress that residential tenancies under lease-to-own provi6 sions can facilitate homeownership by low- and moderate7 income families and provide opportunities for homeowner8 ship for such families who might not otherwise be able to

9 afford homeownership.

10 (b) REPORT.—Not later than the expiration of the 3-

11 month period beginning on the date of the enactment of this

12 Act, the Secretary of Housing and Urban Development shall

13 submit a report to the Congress—

14 (1) analyzing whether lease-to-own provisions

15 can be effectively incorporated within the HOME in16 vestment partnerships program, the public housing

17 program, the tenant-based rental assistance program

18 under section 8 of the United States Housing Act of

19 1937, or any other programs of the Department to fa20 cilitate homeownership by low- or moderate-income

21 families; and

22 (2) any legislative or administrative changes

23 necessary to alter or amend such programs to allow

24 the use of lease-to-own options to provide homeowner25 ship opportunities.
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1 SEC. 604. LOCAL CAPACITY BUILDING.

2 Section 4 of the HUD Demonstration Act of 1993 (42

3 U.S.C. 9816 note) is amended—

4 (1) in subsection (a), by inserting ‘‘National As5 sociation of Housing Partnerships,’’ after ‘‘Human6 ity,’’; and

7 (2) in subsection (e), by striking ‘‘$25,000,000’’

8 and all that follows and inserting ‘‘, for each fiscal

9 year, such sums as may be necessary to carry out this

10 section.’’.

11 SEC. 605. CONSOLIDATED APPLICATION AND PLANNING RE12 QUIREMENT AND SUPER-NOFA.

13 (a) CONSOLIDATED APPLICATION.—Section 106 of the

14 Cranston-Gonzalez National Affordable Housing Act (42

15 U.S.C. 12706) is amended to read as follows:

16 ‘‘SEC. 106. CONSOLIDATED APPLICATION FOR COMMUNITY

17 PLANNING AND DEVELOPMENT PROGRAMS.

18 ‘‘(a) REQUIREMENT.—The Secretary shall, by regula19 tion, provide for jurisdictions to comply with the planning

20 and application requirements under the covered programs

21 under subsection (b) by submitting to the Secretary, for a

22 program year, a single consolidated submission under this

23 section that complies with the requirements for planning

24 and application submissions under the laws relating to the

25 covered programs and shall serve, for the jurisdiction, as
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1 the planning document and an application for funding

2 under the covered programs.

3 ‘‘(b) COVERED PROGRAMS.—The covered programs

4 under this subsection are the following programs:

5 ‘‘(1) The HOME investment partnerships pro6 gram under title II of this Act (42 U.S.C. 12721 et

7 seq.).

8 ‘‘(2) The community development block grant

9 program under title I of the Housing and Community

10 Development Act of 1974 (42 U.S.C. 5301 et seq.).

11 ‘‘(3) The economic development initiative pro12 gram under section 108(q) of the Housing and Com13 munity Development Act of 1974 (42 U.S.C. 5308(q)).

14 ‘‘(4) The emergency shelter grants program

15 under subtitle B of title IV of the Stewart B. McKin16 ney Homeless Assistance Act (42 U.S.C. 11371 et

17 seq.).

18 ‘‘(5) The housing opportunities for persons with

19 AIDS program under subtitle D of title VIII of the

20 Cranston-Gonzalez National Affordable Housing Act

21 (42 U.S.C. 12901 et seq.).

22 ‘‘(c) PROGRAM YEAR.—In establishing requirements

23 for a consolidated submission under this section, the Sec24 retary shall provide for a consolidated program year, which
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1 shall comply with the various application and review dead2 lines under the covered programs.

3 ‘‘(d) ADEQUACY OF EXISTING REGULATIONS.—The

4 regulations of the Secretary relating to consolidated submis5 sions for community planning and development programs,

6 part 91 of title 24, Code of Federal Regulations, as in effect

7 on March 1, 1999, shall be considered to be sufficient to

8 comply with this section, except to the extent that the pro9 gram referred to in paragraph (3) of subsection (b) is not

10 covered by such regulations.

11 ‘‘(e) CONSISTENCY.—The Secretary shall, by regula12 tion or otherwise, as deemed by the Secretary to be appro13 priate, require any application for housing assistance

14 under title II of this Act, assistance under the Housing and

15 Community Development Act of 1974, or assistance under

16 the Stewart B. McKinney Homeless Assistance Act, to con17 tain or be accompanied by a certification by an appro18 priate State or local public official that the proposed hous19 ing activities are consistent with the housing strategy of the

20 jurisdiction to be served.’’.

21 (b) SUPER-NOFA.—The Department of Housing and

22 Urban Development Act is amended by inserting after sec23 tion 12 (42 U.S.C. 3537a) the following new section:
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1 ‘‘SEC. 13. NOTICE OF FUNDING AVAILABILITY.

2 ‘‘(a) REQUIREMENT.—In making amounts for a fiscal

3 year under the covered programs under subsection (b) avail4 able to applicants, the Secretary shall issue a consolidated

5 notice of funding availability that—

6 ‘‘(1) applies to as many of the covered programs

7 as the Secretary determines is practicable;

8 ‘‘(2) simplifies the application process for fund9 ing under such programs by providing for applica10 tion under various covered programs through a single,

11 unified application;

12 ‘‘(3) promotes comprehensive approaches to hous13 ing and community development by providing for ap14 plicants to identify coordination of efforts under var15 ious covered programs; and

16 ‘‘(4) clearly informs prospective applicants of the

17 general and specific requirements under law for ap18 plying for funding under such programs.

19 ‘‘(b) COVERED PROGRAMS.—The covered programs

20 under this subsection are the programs that are adminis21 tered by the Secretary and identified by the Secretary for

22 purposes of this section, in the following areas:

23 ‘‘(1) Housing and community development pro24 grams.

25 ‘‘(2) Economic development and empowerment

26 programs.
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1 ‘‘(3) Targeted housing assistance and homeless

2 assistance programs.’’.

3 SEC. 606. ASSISTANCE FOR SELF-HELP HOUSING PRO4 VIDERS.

5 (a) REAUTHORIZATION.—Subsection (p) of section 11

6 of the Housing Opportunity Program Extension Act of

7 1996 (42 U.S.C. 12805 note) is amended to read as follows:

8 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—There is

9 authorized to be appropriated to carry out this section

10 $25,000,000 for fiscal year 2001 and such sums as may be

11 necessary for each of fiscal years 2002 and 2003.’’.

12 (b) ELIGIBLE EXPENSES.—Section 11(d)(2)(A) of the

13 Housing Opportunity Program Extension Act of 1996 (42

14 U.S.C. 12805 note) is amended by inserting before the pe15 riod at the end the following: ‘‘, which may include reim16 bursing an organization, consortium, or affiliate, upon ap17 proval of any required environmental review, for nongrant

18 amounts of the organization, consortium, or affiliate ad19 vanced before such review to acquire land’’.

20 (c) DEADLINE FOR RECAPTURE OF FUNDS.—Section

21 11 of the Housing Opportunity Program Extension Act of

22 1996 (42 U.S.C. 12805 note) is amended—

23 (1) in subsection (i)(5)—

24 (A) by striking ‘‘if the organization or con25 sortia has not used any grant amounts’’ and in-
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1 serting ‘‘the Secretary shall recapture any grant

2 amounts provided to the organization or con3 sortia that are not used’’;

4 (B) by striking ‘‘(or,’’ and inserting ‘‘, ex5 cept that such period shall be 36 months’’; and

6 (C) by striking ‘‘within 36 months), the

7 Secretary shall recapture such unused amounts’’

8 and inserting ‘‘and in the case of a grant

9 amounts provided to a local affiliate of the orga10 nization or consortia that is developing 5 or

11 more dwellings in connection with such grant

12 amounts’’; and

13 (2) in subsection (j), by inserting after ‘‘carry

14 out this section’’ the following: ‘‘and grant amounts

15 provided to a local affiliate of the organization or

16 consortia that is developing 5 or more dwellings in

17 connection with such grant amounts’’.

18 (d) TECHNICAL CORRECTIONS.—Section 11 of the

19 Housing Opportunity Program Extension Act of 1996 (42

20 U.S.C. 12805 note) is amended—

21 (1) in subsection (b)(4), by striking ‘‘Habitat for

22 Humanity International, its affiliates, and other’’;

23 and

24 (2) in subsection (e)(2), by striking ‘‘consoria’’

25 and inserting ‘‘consortia’’.
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1 SEC. 607. HOUSING COUNSELING ORGANIZATIONS.

2 Section 106 of the Housing and Urban Development

3 Act of 1968 (12 U.S.C. 1701x) is amended—

4 (1) in subsection (a)(1)(ii), by inserting ‘‘and co5 operative housing’’ before the semicolon at the end;

6 and

7 (2) in subsection (c)—

8 (A) in paragraph (1)—

9 (i) in subparagraph (A), by striking

10 ‘‘and’’ at the end;

11 (ii) in subparagraph (B), by striking

12 the period at the end and inserting a semi13 colon; and

14 (iii) by adding at the end the following

15 new subparagraph:

16 ‘‘(C) to the National Cooperative Bank De17 velopment Corporation—

18 ‘‘(i) to provide homeownership coun19 seling to eligible homeowners that is specifi20 cally designed to relate to ownership under

21 cooperative housing arrangements; and

22 ‘‘(ii) to assist in the establishment and

23 operation of well-managed and viable coop24 erative housing boards.’’;

25 (B) in paragraph (4)(A), by inserting before

26 the semicolon at the end the following: ‘‘or, in the
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1 case of a home loan made to finance the purchase

2 of stock or membership in a cooperative owner3 ship housing corporation, by the stock or mem4 bership interest’’; and

5 (C) in paragraph (6)(C), by adding before

6 the period at the end the following: ‘‘and in7 cludes a loan that is secured by a first lien given

8 in accordance with the laws of the State where

9 the property is located and that is made to fi10 nance the purchase of stock or membership in a

11 cooperative ownership housing corporation the

12 permanent occupancy of dwelling units of which

13 is restricted to members of such corporation,

14 where the purchase of such stock or membership

15 will entitle the purchaser to the permanent occu16 pancy of 1 of such units’’.

17 SEC. 608. COMMUNITY LEAD INFORMATION CENTERS AND

18 LEAD-SAFE HOUSING.

19 Section 1011(e) of the Residential Lead-Based Paint

20 Hazard Reduction Act of 1992 (42 U.S.C. 4852(e)) is

21 amended—

22 (1) in paragraph (7), by inserting ‘‘, which may

23 include leasing of lead-safe temporary housing’’ before

24 the semicolon at the end;
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1 (2) in paragraph (9), by striking ‘‘and’’ at the

2 end;

3 (3) by redesignating paragraph (10) as para4 graph (11); and

5 (4) by inserting after paragraph (9) the fol6 lowing new paragraph:

7 ‘‘(10) provide accessible information through cen8 tralized locations that provide a variety of residential

9 lead-based paint poisoning prevention services to the

10 community that such services are intended to benefit;

11 and’’.

12 TITLE VII—NATIVE AMERICAN

13 HOUSING HOMEOWNERSHIP

14 SEC. 701. LANDS TITLE REPORT COMMISSION.

15 (a) ESTABLISHMENT.—Subject to sums being provided

16 in advance in appropriations Acts, there is established a

17 Commission to be known as the Lands Title Report Com18 mission (hereafter in this section referred to as the ‘‘Com19 mission’’) to facilitate home loan mortgages on Indian trust

20 lands. The Commission will be subject to oversight by the

21 Committee on Banking and Financial Services of the House

22 of Representatives and the Committee on Banking, Hous23 ing, and Urban Affairs of the Senate.

24 (b) MEMBERSHIP.—
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1 (1) APPOINTMENT.—The Commission shall be

2 composed of 12 members, appointed not later than 90

3 days after the date of the enactment of this Act as fol4 lows:

5 (A) 4 members shall be appointed by the

6 President.

7 (B) 4 members shall be appointed by the

8 Chairperson of the Committee on Banking and

9 Financial Services of the House of Representa10 tives.

11 (C) 4 members shall be appointed by the

12 Chairperson of the Committee on Banking,

13 Housing, and Urban Affairs of the Senate.

14 (2) QUALIFICATIONS.—

15 (A) MEMBERS OF TRIBES.—At all times,

16 not less than 8 of the members of the Commission

17 shall be members of federally recognized Indian

18 tribes.

19 (B) EXPERIENCE IN LAND TITLE MAT20 TERS.—All members of the Commission shall

21 have experience in and knowledge of land title

22 matters relating to Indian trust lands.

23 (3) CHAIRPERSON.—The Chairperson of the

24 Commission shall be one of the members of the Com-
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1 mission appointed under paragraph (1)(C), as elected

2 by the members of the Commission.

3 (4) VACANCIES.—Any vacancy on the Commis4 sion shall not affect its powers, but shall be filled in

5 the manner in which the original appointment was

6 made.

7 (5) TRAVEL EXPENSES.—Members of the Com8 mission shall serve without pay, but each member

9 shall receive travel expenses, including per diem in

10 lieu of subsistence, in accordance with sections 5702

11 and 5703 of title 5, United States Code.

12 (c) INITIAL MEETING.—The Chairperson of the Com13 mission shall call the initial meeting of the Commission.

14 Such meeting shall be held within 30 days after the Chair15 person of the Commission determines that sums sufficient

16 for the Commission to carry out its duties under this Act

17 have been appropriated for such purpose.

18 (d) DUTIES.—The Commission shall analyze the sys19 tem of the Bureau of Indian Affairs of the Department of

20 the Interior for maintaining land ownership records and

21 title documents and issuing certified title status reports re22 lating to Indian trust lands and, pursuant to such analysis,

23 determine how best to improve or replace the system—

24 (1) to ensure prompt and accurate responses to

25 requests for title status reports;
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1 (2) to eliminate any backlog of requests for title

2 status reports; and

3 (3) to ensure that the administration of the sys4 tem will not in any way impair or restrict the ability

5 of Native Americans to obtain conventional loans for

6 purchase of residences located on Indian trust lands,

7 including any actions necessary to ensure that the

8 system will promptly be able to meet future demands

9 for certified title status reports, taking into account

10 the anticipated complexity and volume of such re11 quests.

12 (e) REPORT.—Not later than the date of the termi13 nation of the Commission under subsection (h), the Com14 mission shall submit a report to the Committee on Banking

15 and Financial Services of the House of Representatives and

16 the Committee on Banking, Housing, and Urban Affairs

17 of the Senate describing the analysis and determinations

18 made pursuant to subsection (d).

19 (f) POWERS.—

20 (1) HEARINGS AND SESSIONS.—The Commission

21 may, for the purpose of carrying out this section, hold

22 hearings, sit and act at times and places, take testi23 mony, and receive evidence as the Commission con24 siders appropriate.
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1 (2) STAFF OF FEDERAL AGENCIES.—Upon re2 quest of the Commission, the head of any Federal de3 partment or agency may detail, on a reimbursable

4 basis, any of the personnel of that department or

5 agency to the Commission to assist it in carrying out

6 its duties under this section.

7 (3) OBTAINING OFFICIAL DATA.—The Commis8 sion may secure directly from any department or

9 agency of the United States information necessary to

10 enable it to carry out this section. Upon request of the

11 Chairperson of the Commission, the head of that de12 partment or agency shall furnish that information to

13 the Commission.

14 (4) MAILS.—The Commission may use the

15 United States mails in the same manner and under

16 the same conditions as other departments and agen17 cies of the United States.

18 (5) ADMINISTRATIVE SUPPORT SERVICES.—Upon

19 the request of the Commission, the Administrator of

20 General Services shall provide to the Commission, on

21 a reimbursable basis, the administrative support serv22 ices necessary for the Commission to carry out its du23 ties under this section.

24 (6) STAFF.—The Commission may appoint per25 sonnel as it considers appropriate, subject to the pro-
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1 visions of title 5, United States Code, governing ap2 pointments in the competitive service, and shall pay

3 such personnel in accordance with the provisions of

4 chapter 51 and subchapter III of chapter 53 of that

5 title relating to classification and General Schedule

6 pay rates.

7 (g) AUTHORIZATION OF APPROPRIATIONS.—To carry

8 out this section, there is authorized to be appropriated

9 $500,000. Such sums shall remain available until expended.

10 (h) TERMINATION.—The Commission shall terminate

11 1 year after the date of the initial meeting of the Commis12 sion.

13 SEC. 702. LOAN GUARANTEES.

14 Section 184(i) of the Housing and Community Devel15 opment Act of 1992 (12 U.S.C. 1715z–13a(i)) is amended—

16 (1) in paragraph (5), by striking subparagraph

17 (C) and inserting the following new subparagraph:

18 ‘‘(C) LIMITATION ON OUTSTANDING AGGRE19 GATE PRINCIPAL AMOUNT.—Subject to the limi20 tations in subparagraphs (A) and (B), the Sec21 retary may enter into commitments to guarantee

22 loans under this section in each fiscal year with

23 an aggregate outstanding principal amount not

24 exceeding such amount as may be provided in

25 appropriation Acts for such fiscal year.’’; and
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1 (2) in paragraph (7), by striking ‘‘each of fiscal

2 years 1997, 1998, 1999, 2000, and 2001’’ and insert3 ing ‘‘each fiscal year’’.

4 SEC. 703. NATIVE AMERICAN HOUSING ASSISTANCE.

5 (a) RESTRICTION ON WAIVER AUTHORITY.—

6 (1) IN GENERAL.—Section 101(b)(2) of the Na7 tive American Housing Assistance and Self-Deter8 mination Act of 1996 (25 U.S.C. 4111(b)(2)) is

9 amended by striking ‘‘if the Secretary’’ and all that

10 follows through the period at the end and inserting

11 the following: ‘‘for a period of not more than 90 days,

12 if the Secretary determines that an Indian tribe has

13 not complied with, or is unable to comply with, those

14 requirements due to exigent circumstances beyond the

15 control of the Indian tribe.’’.

16 (2) LOCAL COOPERATION AGREEMENT.—Section

17 101(c) of the Native American Housing Assistance

18 and Self-Determination Act of 1996 (25 U.S.C.

19 4111(c)) is amended by adding at the end the fol20 lowing: ‘‘The Secretary may waive the requirements

21 of this subsection and subsection (d) if the recipient

22 has made a good faith effort to fulfill the requirements

23 of this subsection and subsection (d) and agrees to

24 make payments in lieu of taxes to the appropriate

25 taxing authority in an amount consistent with the re-
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1 quirements of subsection (d)(2) until such time as the

2 matter of making such payments has been resolved in

3 accordance with subsection (d).’’.

4 (b) ASSISTANCE TO FAMILIES THAT ARE NOT LOW5 INCOME.—Section 102(c) of the Native American Housing

6 Assistance and Self-Determination Act of 1996 (25 U.S.C.

7 4112(c)) is amended by adding at the end the following:

8 ‘‘(6) CERTAIN FAMILIES.—With respect to assist9 ance provided under section 201(b)(2) by a recipient

10 to Indian families that are not low-income families,

11 evidence that there is a need for housing for each such

12 family during that period that cannot reasonably be

13 met without such assistance.’’.

14 (c) ELIMINATION OF WAIVER AUTHORITY FOR SMALL

15 TRIBES.—Section 102 of the Native American Housing As16 sistance and Self-Determination Act of 1996 (25 U.S.C.

17 4112) is amended—

18 (1) by striking subsection (f); and

19 (2) by redesignating subsection (g) as subsection

20 (f).

21 (d) ENVIRONMENTAL COMPLIANCE.—Section 105 of

22 the Native American Housing Assistance and Self-Deter23 mination Act of 1996 (25 U.S.C. 4115) is amended by add24 ing at the end the following:
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1 ‘‘(d) ENVIRONMENTAL COMPLIANCE.—The Secretary

2 may waive the requirements under this section if the Sec3 retary determines that a failure on the part of a recipient

4 to comply with provisions of this section—

5 ‘‘(1) will not frustrate the goals of the National

6 Environmental Policy Act of 1969 (42 U.S.C. 4331 et

7 seq.) or any other provision of law that furthers the

8 goals of that Act;

9 ‘‘(2) does not threaten the health or safety of the

10 community involved by posing an immediate or long11 term hazard to residents of that community;

12 ‘‘(3) is a result of inadvertent error, including

13 an incorrect or incomplete certification provided

14 under subsection (c)(1); and

15 ‘‘(4) may be corrected through the sole action of

16 the recipient.’’.

17 (e) ELIGIBILITY OF LAW ENFORCEMENT OFFICERS

18 FOR HOUSING ASSISTANCE.—Section 201(b) of the Native

19 American Housing Assistance and Self-Determination Act

20 of 1996 (25 U.S.C. 4131(b)) is amended—

21 (1) in paragraph (1), by striking ‘‘paragraph

22 (2)’’ and inserting ‘‘paragraphs (2) and (4)’’;

23 (2) by redesignating paragraphs (4) and (5) as

24 paragraphs (5) and (6), respectively; and
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1 (3) by inserting after paragraph (3) the fol2 lowing new paragraph:

3 ‘‘(4) LAW ENFORCEMENT OFFICERS.—A recipient

4 may provide housing or housing assistance provided

5 through affordable housing activities assisted with

6 grant amounts under this Act for a law enforcement

7 officer on an Indian reservation or other Indian area,

8 if—

9 ‘‘(A) the officer—

10 ‘‘(i) is employed on a full-time basis by

11 the Federal Government or a State, county,

12 or tribal government; and

13 ‘‘(ii) in implementing such full-time

14 employment, is sworn to uphold, and make

15 arrests for, violations of Federal, State,

16 county, or tribal law; and

17 ‘‘(B) the recipient determines that the pres18 ence of the law enforcement officer on the Indian

19 reservation or other Indian area may deter

20 crime.’’.

21 (f) OVERSIGHT.—

22 (1) REPAYMENT.—Section 209 of the Native

23 American Housing Assistance and Self-Determination

24 Act of 1996 (25 U.S.C. 4139) is amended to read as

25 follows:
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1 ‘‘SEC. 209. NONCOMPLIANCE WITH AFFORDABLE HOUSING

2 REQUIREMENT.

3 ‘‘If a recipient uses grant amounts to provide afford4 able housing under this title, and at any time during the

5 useful life of the housing the recipient does not comply with

6 the requirement under section 205(a)(2), the Secretary shall

7 take appropriate action under section 401(a).’’.

8 (2) AUDITS AND REVIEWS.—Section 405 of the

9 Native American Housing Assistance and Self-Deter10 mination Act of 1996 (25 U.S.C. 4165) is amended

11 to read as follows:

12 ‘‘SEC. 405. REVIEW AND AUDIT BY SECRETARY.

13 ‘‘(a) REQUIREMENTS UNDER CHAPTER 75 OF TITLE

14 31, UNITED STATES CODE.—An entity designated by an

15 Indian tribe as a housing entity shall be treated, for pur16 poses of chapter 75 of title 31, United States Code, as a

17 non-Federal entity that is subject to the audit requirements

18 that apply to non-Federal entities under that chapter.

19 ‘‘(b) ADDITIONAL REVIEWS AND AUDITS.—

20 ‘‘(1) IN GENERAL.—In addition to any audit or

21 review under subsection (a), to the extent the Sec22 retary determines such action to be appropriate, the

23 Secretary may conduct an audit or review of a re24 cipient in order to—

25 ‘‘(A) determine whether the recipient—

26 ‘‘(i) has carried out—
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1 ‘‘(I) eligible activities in a timely

2 manner; and

3 ‘‘(II) eligible activities and certifi4 cation in accordance with this Act and

5 other applicable law;

6 ‘‘(ii) has a continuing capacity to

7 carry out eligible activities in a timely

8 manner; and

9 ‘‘(iii) is in compliance with the Indian

10 housing plan of the recipient; and

11 ‘‘(B) verify the accuracy of information

12 contained in any performance report submitted

13 by the recipient under section 404.

14 ‘‘(2) ON-SITE VISITS.—To the extent practicable,

15 the reviews and audits conducted under this sub16 section shall include on-site visits by the appropriate

17 official of the Department of Housing and Urban De18 velopment.

19 ‘‘(c) REVIEW OF REPORTS.—

20 ‘‘(1) IN GENERAL.—The Secretary shall provide

21 each recipient that is the subject of a report made by

22 the Secretary under this section notice that the recipi23 ent may review and comment on the report during a

24 period of not less than 30 days after the date on

25 which notice is issued under this paragraph.
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1 ‘‘(2) PUBLIC AVAILABILITY.—After taking into

2 consideration any comments of the recipient under

3 paragraph (1), the Secretary—

4 ‘‘(A) may revise the report; and

5 ‘‘(B) not later than 30 days after the date

6 on which those comments are received, shall

7 make the comments and the report (with any re8 visions made under subparagraph (A)) readily

9 available to the public.

10 ‘‘(d) EFFECT OF REVIEWS.—Subject to section 401(a),

11 after reviewing the reports and audits relating to a recipi12 ent that are submitted to the Secretary under this section,

13 the Secretary may adjust the amount of a grant made to

14 a recipient under this Act in accordance with the findings

15 of the Secretary with respect to those reports and audits.’’.

16 (g) ALLOCATION FORMULA.—Section 302(d)(1) of the

17 Native American Housing Assistance and Self-Determina18 tion Act of 1996 (25 U.S.C. 4152(d)(1)) is amended—

19 (1) by striking ‘‘The formula,’’ and inserting the

20 following:

21 ‘‘(A) IN GENERAL.—Except with respect to

22 an Indian tribe described in subparagraph (B),

23 the formula’’; and

24 (2) by adding at the end the following:
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1 ‘‘(B) CERTAIN INDIAN TRIBES.—With re2 spect to fiscal year 2001 and each fiscal year

3 thereafter, for any Indian tribe with an Indian

4 housing authority that owns or operates fewer

5 than 250 public housing units, the formula shall

6 provide that if the amount provided for a fiscal

7 year in which the total amount made available

8 for assistance under this Act is equal to or great9 er than the amount made available for fiscal

10 year 1996 for assistance for the operation and

11 modernization of the public housing referred to

12 in subparagraph (A), then the amount provided

13 to that Indian tribe as modernization assistance

14 shall be equal to the average annual amount of

15 funds provided to the Indian tribe (other than

16 funds provided as emergency assistance) under

17 the assistance program under section 14 of the

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

19 1437l) for the period beginning with fiscal year

20 1992 and ending with fiscal year 1997.’’.

21 (h) HEARING REQUIREMENT.—Section 401(a) of the

22 Native American Housing Assistance and Self-Determina23 tion Act of 1996 (25 U.S.C. 4161(a)) is amended—

24 (1) by redesignating paragraphs (1) through (4)

25 as subparagraphs (A) through (D), respectively, and
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1 realigning such subparagraphs (as so redesignated) so

2 as to be indented 4 ems from the left margin;

3 (2) by striking ‘‘Except as provided’’ and insert4 ing the following:

5 ‘‘(1) IN GENERAL.—Except as provided’’;

6 (3) by striking ‘‘If the Secretary takes an action

7 under paragraph (1), (2), or (3)’’ and inserting the

8 following:

9 ‘‘(2) CONTINUANCE OF ACTIONS.—If the Sec10 retary takes an action under subparagraph (A), (B),

11 or (C) of paragraph (1)’’; and

12 (4) by adding at the end the following:

13 ‘‘(3) EXCEPTION FOR CERTAIN ACTIONS.—

14 ‘‘(A) IN GENERAL.—Notwithstanding any

15 other provision of this subsection, if the Sec16 retary makes a determination that the failure of

17 a recipient of assistance under this Act to com18 ply substantially with any material provision

19 (as that term is defined by the Secretary) of this

20 Act is resulting, and would continue to result, in

21 a continuing expenditure of Federal funds in a

22 manner that is not authorized by law, the Sec23 retary may take an action described in para24 graph (1)(C) before conducting a hearing.
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1 ‘‘(B) PROCEDURAL REQUIREMENT.—If the

2 Secretary takes an action described in subpara3 graph (A), the Secretary shall—

4 ‘‘(i) provide notice to the recipient at

5 the time that the Secretary takes that ac6 tion; and

7 ‘‘(ii) conduct a hearing not later than

8 60 days after the date on which the Sec9 retary provides notice under clause (i).

10 ‘‘(C) DETERMINATION.—Upon completion of

11 a hearing under this paragraph, the Secretary

12 shall make a determination regarding whether to

13 continue taking the action that is the subject of

14 the hearing, or take another action under this

15 subsection.’’.

16 (i) PERFORMANCE AGREEMENT TIME LIMIT.—Section

17 401(b) of the Native American Housing Assistance and Self18 Determination Act of 1996 (25 U.S.C. 4161(b)) is

19 amended—

20 (1) by striking ‘‘If the Secretary’’ and inserting

21 the following:

22 ‘‘(1) IN GENERAL.—If the Secretary’’;

23 (2) by striking ‘‘(1) is not’’ and inserting the fol24 lowing:

25 ‘‘(A) is not’’;
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1 (3) by striking ‘‘(2) is a result’’ and inserting

2 the following:

3 ‘‘(B) is a result’’;

4 (4) in the flush material following paragraph

5 (1)(B), as redesignated by paragraph (3) of this

6 subsection—

7 (A) by realigning such material so as to be

8 indented 2 ems from the left margin; and

9 (B) by inserting before the period at the end

10 the following: ‘‘, if the recipient enters into a

11 performance agreement with the Secretary that

12 specifies the compliance objectives that the recipi13 ent will be required to achieve by the termi14 nation date of the performance agreement’’; and

15 (5) by adding at the end the following:

16 ‘‘(2) PERFORMANCE AGREEMENT.—The period of

17 a performance agreement described in paragraph (1)

18 shall be for 1 year.

19 ‘‘(3) REVIEW.—Upon the termination of a per20 formance agreement entered into under paragraph

21 (1), the Secretary shall review the performance of the

22 recipient that is a party to the agreement.

23 ‘‘(4) EFFECT OF REVIEW.—If, on the basis of a

24 review under paragraph (3), the Secretary determines

25 that the recipient—
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1 ‘‘(A) has made a good faith effort to meet

2 the compliance objectives specified in the agree3 ment, the Secretary may enter into an addi4 tional performance agreement for the period

5 specified in paragraph (2); and

6 ‘‘(B) has failed to make a good faith effort

7 to meet applicable compliance objectives, the Sec8 retary shall determine the recipient to have

9 failed to comply substantially with this Act, and

10 the recipient shall be subject to an action under

11 subsection (a).’’.

12 (j) REFERENCE.—Section 104(b)(1) of the Native

13 American Housing Assistance and Self-Determination Act

14 of 1996 (25 U.S.C. 4114(b)(1)) is amended by striking

15 ‘‘Davis-Bacon Act (40 U.S.C. 276a–276a–5)’’ and inserting

16 ‘‘Act of March 3, 1931 (commonly known as the Davis17 Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C 276a et

18 seq.)’’.

19 (k) TECHNICAL AND CONFORMING AMENDMENTS.—

20 (1) TABLE OF CONTENTS.—Section 1(b) of the

21 Native American Housing Assistance and Self-Deter22 mination Act of 1996 (25 U.S.C. 4101 note) is

23 amended in the table of contents—

24 (A) by striking the item relating to section

25 206; and
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1 (B) by striking the item relating to section

2 209 and inserting the following:

‘‘209. Noncompliance with affordable housing requirement.’’.

3 (2) CERTIFICATION OF COMPLIANCE WITH SUB4 SIDY LAYERING REQUIREMENTS.—Section 206 of the

5 Native American Housing Assistance and Self-Deter6 mination Act of 1996 (25 U.S.C. 4136) is repealed.

7 (3) TERMINATIONS.—Section 502(a) of the Na8 tive American Housing Assistance and Self-Deter9 mination Act of 1996 (25 U.S.C. 4181(a)) is amended

10 by adding at the end the following: ‘‘Any housing that

11 is the subject of a contract for tenant-based assistance

12 between the Secretary and an Indian housing author13 ity that is terminated under this section shall, for the

14 following fiscal year and each fiscal year thereafter,

15 be considered to be a dwelling unit under section

16 302(b)(1).’’.
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1 TITLE VIII—TRANSFER OF HUD2 HELD HOUSING TO LOCAL

3 GOVERNMENTS AND NON4 PROFIT ORGANIZATIONS

5 SEC. 801. TRANSFER OF UNOCCUPIED AND SUBSTANDARD

6 HUD-HELD HOUSING TO LOCAL GOVERN7 MENTS AND COMMUNITY DEVELOPMENT

8 CORPORATIONS.

9 Section 204 of the Departments of Veterans Affairs and

10 Housing and Urban Development, and Independent Agen11 cies Appropriations Act, 1997 (12 U.S.C. 1715z–11a) is

12 amended—

13 (1) by striking ‘‘FLEXIBLE AUTHORITY.—’’ and

14 inserting ‘‘DISPOSITION OF HUD-OWNED PROP15 ERTIES. (a) FLEXIBLE AUTHORITY FOR MULTIFAMILY

16 PROJECTS.—’’; and

17 (2) by adding at the end the following new sub18 section:

19 ‘‘(b) TRANSFER OF UNOCCUPIED AND SUBSTANDARD

20 HOUSING TO LOCAL GOVERNMENTS AND COMMUNITY DE21 VELOPMENT CORPORATIONS.—

22 ‘‘(1) TRANSFER AUTHORITY.—Notwithstanding

23 the authority under subsection (a) and the last sen24 tence of section 204(g) of the National Housing Act

25 (12 U.S.C. 1710(g)), the Secretary of Housing and
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1 Urban Development shall transfer ownership of any

2 qualified HUD property, subject to the requirements

3 of this section, to a unit of general local government

4 having jurisdiction for the area in which the property

5 is located or to a community development corporation

6 which operates within such a unit of general local

7 government in accordance with this subsection, but

8 only to the extent that units of general local govern9 ment and community development corporations con10 sent to transfer and the Secretary determines that

11 such transfer is practicable.

12 ‘‘(2) QUALIFIED HUD PROPERTIES.—For pur13 poses of this subsection, the term ‘qualified HUD

14 property’ means any property for which, as of the

15 date that notification of the property is first made

16 under paragraph (3)(B), not less than 6 months have

17 elapsed since the later of the date that the property

18 was acquired by the Secretary or the date that the

19 property was determined to be unoccupied or sub20 standard, that is owned by the Secretary and is—

21 ‘‘(A) an unoccupied multifamily housing

22 project;

23 ‘‘(B) a substandard multifamily housing

24 project; or
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1 ‘‘(C) an unoccupied single family property

2 that—

3 ‘‘(i) has been determined by the Sec4 retary not to be an eligible asset under sec5 tion 204(h) of the National Housing Act (12

6 U.S.C. 1710(h)); or

7 ‘‘(ii) is an eligible asset under such sec8 tion 204(h), but—

9 ‘‘(I) is not subject to a specific

10 sale agreement under such section; and

11 ‘‘(II) has been determined by the

12 Secretary to be inappropriate for con13 tinued inclusion in the program under

14 such section 204(h) pursuant to para15 graph (10) of such section.

16 ‘‘(3) TIMING.—The Secretary shall establish pro17 cedures that provide for—

18 ‘‘(A) time deadlines for transfers under this

19 subsection;

20 ‘‘(B) notification to units of general local

21 government and community development cor22 porations of qualified HUD properties in their

23 jurisdictions;
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1 ‘‘(C) such units and corporations to express

2 interest in the transfer under this subsection of

3 such properties;

4 ‘‘(D) a right of first refusal for transfer of

5 qualified HUD properties to units of general

6 local government and community development

7 corporations, under which—

8 ‘‘(i) the Secretary shall establish a pe9 riod during which the Secretary may not

10 transfer such properties except to such units

11 and corporations;

12 ‘‘(ii) the Secretary shall offer qualified

13 HUD properties that are single family

14 properties for purchase by units of general

15 local government at a cost of $1 for each

16 property, but only to the extent that the

17 costs to the Federal Government of disposal

18 at such price do not exceed the costs to the

19 Federal Government of disposing of prop20 erty subject to the procedures for single fam21 ily property established by the Secretary

22 pursuant to the authority under the last

23 sentence of section 204(g) of the National

24 Housing Act (12 U.S.C. 1710(g));
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1 ‘‘(iii) the Secretary may accept an

2 offer to purchase a property made by a

3 community development corporation only if

4 the offer provides for purchase on a cost re5 covery basis; and

6 ‘‘(iv) the Secretary shall accept an

7 offer to purchase such a property that is

8 made during such period by such a unit or

9 corporation and that complies with the re10 quirements of this paragraph;

11 ‘‘(E) a written explanation, to any unit of

12 general local government or community develop13 ment corporation making an offer to purchase a

14 qualified HUD property under this subsection

15 that is not accepted, of the reason that such offer

16 was not acceptable.

17 ‘‘(4) OTHER DISPOSITION.—With respect to any

18 qualified HUD property, if the Secretary does not re19 ceive an acceptable offer to purchase the property pur20 suant to the procedure established under paragraph

21 (3), the Secretary shall dispose of the property to the

22 unit of general local government in which property is

23 located or to community development corporations lo24 cated in such unit of general local government on a
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1 negotiated, competitive bid, or other basis, on such

2 terms as the Secretary deems appropriate.

3 ‘‘(5) SATISFACTION OF INDEBTEDNESS.—Before

4 transferring ownership of any qualified HUD prop5 erty pursuant to this subsection, the Secretary shall

6 satisfy any indebtedness incurred in connection with

7 the property to be transferred, by canceling the in8 debtedness.

9 ‘‘(6) DETERMINATION OF STATUS OF PROP10 ERTIES.—To ensure compliance with the requirements

11 of this subsection, the Secretary shall take the fol12 lowing actions:

13 ‘‘(A) UPON ENACTMENT.—Upon the enact14 ment of the American Homeownership and Eco15 nomic Opportunity Act of 2000, the Secretary

16 shall promptly assess each residential property

17 owned by the Secretary to determine whether

18 such property is a qualified HUD property.

19 ‘‘(B) UPON ACQUISITION.—Upon acquiring

20 any residential property, the Secretary shall

21 promptly determine whether the property is a

22 qualified HUD property.

23 ‘‘(C) UPDATES.—The Secretary shall peri24 odically reassess the residential properties owned

25 by the Secretary to determine whether any such
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1 properties have become qualified HUD prop2 erties.

3 ‘‘(7) TENANT LEASES.—This subsection shall not

4 affect the terms or the enforceability of any contract

5 or lease entered into with respect to any residential

6 property before the date that such property becomes a

7 qualified HUD property.

8 ‘‘(8) USE OF PROPERTY.—Property transferred

9 under this subsection shall be used only for appro10 priate neighborhood revitalization efforts, including

11 homeownership, rental units, commercial space, and

12 parks, consistent with local zoning regulations, local

13 building codes, and subdivision regulations and re14 strictions of record.

15 ‘‘(9) INAPPLICABILITY TO PROPERTIES MADE

16 AVAILABLE FOR HOMELESS.—Notwithstanding any

17 other provision of this subsection, this subsection shall

18 not apply to any properties that the Secretary deter19 mines are to be made available for use by the home20 less pursuant to subpart E of part 291 of title 24,

21 Code of Federal Regulations, during the period that

22 the properties are so available.

23 ‘‘(10) PROTECTION OF EXISTING CONTRACTS.—

24 This subsection may not be construed to alter, affect,

25 or annul any legally binding obligations entered into
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1 with respect to a qualified HUD property before the

2 property becomes a qualified HUD property.

3 ‘‘(11) DEFINITIONS.—For purposes of this sub4 section, the following definitions shall apply:

5 ‘‘(A) COMMUNITY DEVELOPMENT CORPORA6 TION.—The term ‘community development cor7 poration’ means a nonprofit organization whose

8 primary purpose is to promote community devel9 opment by providing housing opportunities for

10 low-income families.

11 ‘‘(B) COST RECOVERY BASIS.—The term

12 ‘cost recovery basis’ means, with respect to any

13 sale of a residential property by the Secretary,

14 that the purchase price paid by the purchaser is

15 equal to or greater than the sum of (i) the ap16 praised value of the property, as determined in

17 accordance with such requirements as the Sec18 retary shall establish, and (ii) the costs incurred

19 by the Secretary in connection with such prop20 erty during the period beginning on the date on

21 which the Secretary acquires title to the property

22 and ending on the date on which the sale is con23 summated.

24 ‘‘(C) MULTIFAMILY HOUSING PROJECT.—

25 The term ‘multifamily housing project’ has the
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1 meaning given the term in section 203 of the

2 Housing and Community Development Amend3 ments of 1978.

4 ‘‘(D) RESIDENTIAL PROPERTY.—The term

5 ‘residential property’ means a property that is a

6 multifamily housing project or a single family

7 property.

8 ‘‘(E) SECRETARY.—The term ‘Secretary’

9 means the Secretary of Housing and Urban De10 velopment.

11 ‘‘(F) SEVERE PHYSICAL PROBLEMS.—The

12 term ‘severe physical problems’ means, with re13 spect to a dwelling unit, that the unit—

14 ‘‘(i) lacks hot or cold piped water, a

15 flush toilet, or both a bathtub and a shower

16 in the unit, for the exclusive use of that

17 unit;

18 ‘‘(ii) on not less than 3 separate occa19 sions during the preceding winter months,

20 was uncomfortably cold for a period of more

21 than 6 consecutive hours due to a malfunc22 tion of the heating system for the unit;

23 ‘‘(iii) has no functioning electrical

24 service, exposed wiring, any room in which

25 there is not a functioning electrical outlet,
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1 or has experienced 3 or more blown fuses or

2 tripped circuit breakers during the pre3 ceding 90-day period;

4 ‘‘(iv) is accessible through a public

5 hallway in which there are no working light

6 fixtures, loose or missing steps or railings,

7 and no elevator; or

8 ‘‘(v) has severe maintenance problems,

9 including water leaks involving the roof,

10 windows, doors, basement, or pipes or

11 plumbing fixtures, holes or open cracks in

12 walls or ceilings, severe paint peeling or

13 broken plaster, and signs of rodent infesta14 tion.

15 ‘‘(G) SINGLE FAMILY PROPERTY.—The term

16 ‘single family property’ means a 1- to 4-family

17 residence.

18 ‘‘(H) SUBSTANDARD.—The term ‘sub19 standard’ means, with respect to a multifamily

20 housing project, that 25 percent or more of the

21 dwelling units in the project have severe physical

22 problems.

23 ‘‘(I) UNIT OF GENERAL LOCAL GOVERN24 MENT.—The term ‘unit of general local govern25 ment’ has the meaning given such term in sec-
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1 tion 102(a) of the Housing and Community De2 velopment Act of 1974.

3 ‘‘(J) UNOCCUPIED.—The term ‘unoccupied’

4 means, with respect to a residential property,

5 that the unit of general local government having

6 jurisdiction over the area in which the project is

7 located has certified in writing that the property

8 is not inhabited.

9 ‘‘(12) REGULATIONS.—

10 ‘‘(A) INTERIM.—Not later than 30 days

11 after the date of the enactment of the American

12 Homeownership and Economic Opportunity Act

13 of 2000, the Secretary shall issue such interim

14 regulations as are necessary to carry out this

15 subsection.

16 ‘‘(B) FINAL.—Not later than 60 days after

17 the date of the enactment of the American Home18 ownership and Economic Opportunity Act of

19 2000, the Secretary shall issue such final regula20 tions as are necessary to carry out this sub21 section.’’.

22 SEC. 802. TRANSFER OF HUD ASSETS IN REVITALIZATION

23 AREAS.

24 In carrying out the program under section 204(h) of

25 the National Housing Act (12 U.S.C. 1710(h)), upon the
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1 request of the chief executive officer of a county or the gov2 ernment of appropriate jurisdiction and not later than 60

3 days after such request is made, the Secretary of Housing

4 and Urban Development shall designate as a revitalization

5 area all portions of such county that meet the criteria for

6 such designation under paragraph (3) of such section.

7 TITLE IX—PRIVATE MORTGAGE

8 INSURANCE CANCELLATION

9 AND TERMINATION

10 SECTION 901. SHORT TITLE.

11 This title may be cited as the ‘‘Private Mortgage Insur12 ance Technical Corrections and Clarification Act’’.

13 SEC. 902. CHANGES IN AMORTIZATION SCHEDULE.

14 (a) TREATMENT OF ADJUSTABLE RATE MORT15 GAGES.—The Homeowners Protection Act of 1998 (12

16 U.S.C. 4901 et seq.) is amended—

17 (1) in section 2—

18 (A) in paragraph (2)(B)(i), by striking

19 ‘‘amortization schedules’’ and inserting ‘‘the am20 ortization schedule then in effect’’;

21 (B) in paragraph (16)(B), by striking ‘‘am22 ortization schedules’’ and inserting ‘‘the amorti23 zation schedule then in effect’’;

24 (C) by redesignating paragraphs (6)

25 through (16) (as amended by the preceding pro-
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1 visions of this paragraph) as paragraphs (8)

2 through (18), respectively; and

3 (D) by inserting after paragraph (5) the fol4 lowing new paragraph:

5 ‘‘(6) AMORTIZATION SCHEDULE THEN IN EF6 FECT.—The term ‘amortization schedule then in ef7 fect’ means, with respect to an adjustable rate mort8 gage, a schedule established at the time at which the

9 residential mortgage transaction is consummated or,

10 if such schedule has been changed or recalculated, is

11 the most recent schedule under the terms of the note

12 or mortgage, which shows—

13 ‘‘(A) the amount of principal and interest

14 that is due at regular intervals to retire the

15 principal balance and accrued interest over the

16 remaining amortization period of the loan; and

17 ‘‘(B) the unpaid balance of the loan after

18 each such scheduled payment is made.’’; and

19 (2) in section 3(f)(1)(B)(ii), by striking ‘‘amorti20 zation schedules’’ and inserting ‘‘the amortization

21 schedule then in effect’’.

22 (b) TREATMENT OF BALLOON MORTGAGES.—Para23 graph (1) of section 2 of the Homeowners Protection Act

24 of 1998 (12 U.S.C. 4901(1)) is amended by adding at the

25 end the following new sentence: ‘‘A residential mortgage
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1 that (A) does not fully amortize over the term of the obliga2 tion, and (B) contains a conditional right to refinance or

3 modify the unamortized principal at the maturity date of

4 the term, shall be considered to be an adjustable rate mort5 gage for purposes of this Act.’’.

6 (c) TREATMENT OF LOAN MODIFICATIONS.—

7 (1) IN GENERAL.—Section 3 of the Homeowners

8 Protection Act of 1998 (12 U.S.C. 4902) is

9 amended—

10 (A) by redesignating subsections (d) through

11 (f) as subsections (e) through (g), respectively;

12 and

13 (B) by inserting after subsection (c) the fol14 lowing new subsection:

15 ‘‘(d) TREATMENT OF LOAN MODIFICATIONS.—If a

16 mortgagor and mortgagee (or holder of the mortgage) agree

17 to a modification of the terms or conditions of a loan pursu18 ant to a residential mortgage transaction, the cancellation

19 date, termination date, or final termination shall be recal20 culated to reflect the modified terms and conditions of such

21 loan.’’.

22 (2) CONFORMING AMENDMENTS.—Section 4(a) of

23 the Homeowners Protection Act of 1998 (12 U.S.C.

24 4903(a)) is amended—

25 (A) in paragraph (1)—
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1 (i) in the matter preceding subpara2 graph (A), by striking ‘‘section 3(f)(1)’’ and

3 inserting ‘‘section 3(g)(1)’’;

4 (ii) in subparagraph (A)(ii)(IV), by

5 striking ‘‘section 3(f)’’ and inserting ‘‘sec6 tion 3(g)’’; and

7 (iii) in subparagraph (B)(iii), by

8 striking ‘‘section 3(f)’’ and inserting ‘‘sec9 tion 3(g)’’; and

10 (B) in paragraph (2), by striking ‘‘section

11 3(f)(1)’’ and inserting ‘‘section 3(g)(1)’’.

12 SEC. 903. DELETION OF AMBIGUOUS REFERENCES TO RESI13 DENTIAL MORTGAGES.

14 (a) TERMINATION OF PRIVATE MORTGAGE INSUR15 ANCE.—Section 3 of the Homeowners Protection Act of 1998

16 (12 U.S.C. 4902) is amended—

17 (1) in subsection (c), by inserting ‘‘on residential

18 mortgage transactions’’ after ‘‘imposed’’; and

19 (2) in subsection (g) (as so redesignated by sec20 tion 902(c)(1)(A) of this title)—

21 (A) in paragraph (1), in the matter pre22 ceding subparagraph (A), by striking ‘‘mortgage

23 or’’;

24 (B) in paragraph (2), by striking ‘‘mort25 gage or’’; and
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1 (C) in paragraph (3), by striking ‘‘mort2 gage or’’ and inserting ‘‘residential mortgage or

3 residential’’.

4 (b) DISCLOSURE REQUIREMENTS.—Section 4 of the

5 Homeowners Protection Act of 1998 (12 U.S.C. 4903(a))

6 is amended—

7 (1) in subsection (a)—

8 (A) in paragraph (1)—

9 (i) by striking ‘‘mortgage or’’ the first

10 place it appears; and

11 (ii) by striking ‘‘mortgage or’’ the sec12 ond place it appears and inserting ‘‘resi13 dential’’; and

14 (B) in paragraph (2), by striking ‘‘mort15 gage or’’ and inserting ‘‘residential’’;

16 (2) in subsection (c), by striking ‘‘paragraphs

17 (1)(B) and (3) of subsection (a)’’ and inserting ‘‘sub18 section (a)(3)’’; and

19 (3) in subsection (d), by inserting before the pe20 riod at the end the following: ‘‘, which disclosures

21 shall relate to the mortgagor’s rights under this Act’’.

22 (c) DISCLOSURE REQUIREMENTS FOR LENDER-PAID

23 MORTGAGE INSURANCE.—Section 6 of the Homeowners

24 Protection Act of 1998 (12 U.S.C. 4905) is amended—

25 (1) in subsection (c)—
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1 (A) in the matter preceding paragraph (1),

2 by striking ‘‘a residential mortgage or’’; and

3 (B) in paragraph (2), by inserting ‘‘trans4 action’’ after ‘‘residential mortgage’’; and

5 (2) in subsection (d), by inserting ‘‘transaction’’

6 after ‘‘residential mortgage’’.

7 SEC. 904. CANCELLATION RIGHTS AFTER CANCELLATION

8 DATE.

9 Section 3 of the Homeowners Protection Act of 1998

10 (12 U.S.C. 4902) is amended—

11 (1) in subsection (a)—

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

13 by inserting after ‘‘cancellation date’’ the fol14 lowing: ‘‘or any later date that the mortgagor

15 fulfills all of the requirements under paragraphs

16 (1) through (4)’’;

17 (B) in paragraph (2), by striking ‘‘and’’ at

18 the end;

19 (C) by redesignating paragraph (3) as

20 paragraph (4); and

21 (D) by inserting after paragraph (2) the fol22 lowing new paragraph:

23 ‘‘(3) is current on the payments required by the

24 terms of the residential mortgage transaction; and’’;

25 and
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1 (2) in subsection (e)(1)(B) (as so redesignated by

2 section 902(c)(1)(A) of this title), by striking ‘‘sub3 section (a)(3)’’ and inserting ‘‘subsection (a)(4)’’.

4 SEC. 905. CLARIFICATION OF CANCELLATION AND TERMI5 NATION ISSUES AND LENDER PAID MORT6 GAGE INSURANCE DISCLOSURE REQUIRE7 MENTS.

8 (a) GOOD PAYMENT HISTORY.—Section 2(4) of the

9 Homeowners Protection Act of 1998 (12 U.S.C. 4901(4))

10 is amended—

11 (1) in subparagraph (A)—

12 (A) by inserting ‘‘the later of (i)’’ before

13 ‘‘the date’’; and

14 (ii) by inserting ‘‘, or (ii) the date that

15 the mortgagor submits a request for can16 cellation under section 3(a)(1)’’ before the

17 semicolon; and

18 (B) in subparagraph (B)—

19 (i) by inserting ‘‘the later of (i)’’ before

20 ‘‘the date’’; and

21 (ii) by inserting ‘‘, or (ii) the date that

22 the mortgagor submits a request for can23 cellation under section 3(a)(1)’’ before the

24 period at the end.
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1 (b) AUTOMATIC TERMINATION.—Paragraph (2) of sec2 tion 3(b) of the Homeowners Protection Act of 1998 (12

3 U.S.C. 4902(b)(2)) is amended to read as follows:

4 ‘‘(2) if the mortgagor is not current on the termi5 nation date, on the first day of the first month begin6 ning after the date that the mortgagor becomes cur7 rent on the payments required by the terms of the res8 idential mortgage transaction.’’

9 (c) PREMIUM PAYMENTS.—Section 3 of the Home10 owners Protection Act of 1998 (12 U.S.C. 4902) is amended

11 by adding at the end the following new subsection:

12 ‘‘(h) ACCRUED OBLIGATION FOR PREMIUM PAY13 MENTS.—The cancellation or termination under this section

14 of the private mortgage insurance of a mortgagor shall not

15 affect the rights of any mortgagee, servicer, or mortgage in16 surer to enforce any obligation of such mortgagor for pre17 mium payments accrued prior to the date on which such

18 cancellation or termination occurred.’’.

19 SEC. 906. DEFINITIONS.

20 (a) REFINANCED.—Section 6(c)(1)(B)(ii) of the Home21 owners Protection Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii))

22 is amended by inserting after ‘‘refinanced’’ the following:

23 ‘‘(under the meaning given such term in the regulations

24 issued by the Board of Governors of the Federal Reserve
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1 System to carry out the Truth in Lending Act (15 U.S.C.

2 1601 et seq.))’’.

3 (b) MIDPOINT OF THE AMORTIZATION PERIOD.—Sec4 tion 2 of the Homeowners Protection Act of 1998 (12 U.S.C.

5 4901) is amended by inserting after paragraph (6) (as

6 added by section 902(a)(1)(D) of this Act) the following new

7 paragraph:

8 ‘‘(7) MIDPOINT OF THE AMORTIZATION PE9 RIOD.—The term ‘midpoint of the amortization pe10 riod’ means, with respect to a residential mortgage

11 transaction, the point in time that is halfway through

12 the period that begins upon the first day of the amor13 tization period established at the time a residential

14 mortgage transaction is consummated and ends upon

15 the completion of the entire period over which the

16 mortgage is scheduled to be amortized.’’.

17 (c) ORIGINAL VALUE.—Section 2(12) of the Home18 owners Protection Act of 1998 (12 U.S.C. 4901(10)) (as so

19 redesignated by section 902(a)(1)(C) of this Act) is

20 amended—

21 (1) by inserting ‘‘transaction’’ after ‘‘a residen22 tial mortgage’’; and

23 (2) by adding at the end the following new sen24 tence: ‘‘In the case of a residential mortgage trans25 action for refinancing the principal residence of the
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1 mortgagor, such term means only the appraised value

2 relied upon by the mortgagee to approve the refinance

3 transaction.’’.

4 (d) PRINCIPAL RESIDENCE.—Section 2 of the Home5 owners Protection Act of 1998 (12 U.S.C. 4901) is

6 amended—

7 (1) in paragraph (14) (as so redesignated by sec8 tion 902(a)(1)(C) of this Act) by striking ‘‘primary’’

9 and inserting ‘‘principal’’; and

10 (2) in paragraph (15) (as so redesignated by sec11 tion 902(a)(1)(C) of this Act) by striking ‘‘primary’’

12 and inserting ‘‘principal’’;

13 TITLE X—RURAL HOUSING

14 HOMEOWNERSHIP

15 SEC. 1001. PROMISSORY NOTE REQUIREMENT UNDER

16 HOUSING REPAIR LOAN PROGRAM.

17 The fourth sentence of section 504(a) of the Housing

18 Act of 1949 (42 U.S.C. 1474(a)) is amended by striking

19 ‘‘$2,500’’ and inserting ‘‘$7,500’’.

20 SEC. 1002. LIMITED PARTNERSHIP ELIGIBILITY FOR FARM

21 LABOR HOUSING LOANS.

22 The first sentence of section 514(a) of the Housing Act

23 of 1949 (42 U.S.C. 1484(a)) is amended by striking ‘‘non24 profit limited partnership’’ and inserting ‘‘limited partner25 ship’’.
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1 SEC. 1003. PROJECT ACCOUNTING RECORDS AND PRAC2 TICES.

3 Section 515 of the Housing Act of 1949 (42 U.S.C.

4 1485) is amended by striking subsection (z) and inserting

5 the following new subsections:

6 ‘‘(z) ACCOUNTING AND RECORDKEEPING REQUIRE7 MENTS.—

8 ‘‘(1) ACCOUNTING STANDARDS.—The Secretary

9 shall require that borrowers in programs authorized

10 by this section maintain accounting records in ac11 cordance with generally accepted accounting prin12 ciples for all projects that receive funds from loans

13 made or guaranteed by the Secretary under this sec14 tion.

15 ‘‘(2) RECORD RETENTION REQUIREMENTS.—The

16 Secretary shall require that borrowers in programs

17 authorized by this section retain for a period of not

18 less than 6 years and make available to the Secretary

19 in a manner determined by the Secretary, all records

20 required to be maintained under this subsection and

21 other records identified by the Secretary in applicable

22 regulations.

23 ‘‘(aa) DOUBLE DAMAGES FOR UNAUTHORIZED USE OF

24 HOUSING PROJECTS ASSETS AND INCOME.—

25 ‘‘(1) ACTION TO RECOVER ASSETS OR INCOME.—
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1 ‘‘(A) IN GENERAL.—The Secretary may re2 quest the Attorney General to bring an action in

3 a United States district court to recover any as4 sets or income used by any person in violation

5 of the provisions of a loan made or guaranteed

6 by the Secretary under this section or in viola7 tion of any applicable statute or regulation.

8 ‘‘(B) IMPROPER DOCUMENTATION.—For

9 purposes of this subsection, a use of assets or in10 come in violation of the applicable loan, loan

11 guarantee, statute, or regulation shall include

12 any use for which the documentation in the

13 books and accounts does not establish that the use

14 was made for a reasonable operating expense or

15 necessary repair of the project or for which the

16 documentation has not been maintained in ac17 cordance with the requirements of the Secretary

18 and in reasonable condition for proper audit.

19 ‘‘(C) DEFINITION.—For the purposes of this

20 subsection, the term ‘person’ means—

21 ‘‘(i) any individual or entity that bor22 rows funds in accordance with programs

23 authorized by this section;

24 ‘‘(ii) any individual or entity holding

25 25 percent or more interest of any entity
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1 that borrows funds in accordance with pro2 grams authorized by this section; and

3 ‘‘(iii) any officer, director, or partner

4 of an entity that borrows funds in accord5 ance with programs authorized by this sec6 tion.

7 ‘‘(2) AMOUNT RECOVERABLE.—

8 ‘‘(A) IN GENERAL.—In any judgment favor9 able to the United States entered under this sub10 section, the Attorney General may recover double

11 the value of the assets and income of the project

12 that the court determines to have been used in

13 violation of the provisions of a loan made or

14 guaranteed by the Secretary under this section or

15 any applicable statute or regulation, plus all

16 costs related to the action, including reasonable

17 attorney and auditing fees.

18 ‘‘(B) APPLICATION OF RECOVERED

19 FUNDS.—Notwithstanding any other provision of

20 law, the Secretary may use amounts recovered

21 under this subsection for activities authorized

22 under this section and such funds shall remain

23 available for such use until expended.

24 ‘‘(3) TIME LIMITATION.—Notwithstanding any

25 other provision of law, an action under this sub-
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1 section may be commenced at any time during the 6-

2 year period beginning on the date that the Secretary

3 discovered or should have discovered the violation of

4 the provisions of this section or any related statutes

5 or regulations.

6 ‘‘(4) CONTINUED AVAILABILITY OF OTHER REM7 EDIES.—The remedy provided in this subsection is in

8 addition to and not in substitution of any other rem9 edies available to the Secretary or the United

10 States.’’.

11 SEC. 1004. DEFINITION OF RURAL AREA.

12 The second sentence of section 520 of the Housing Act

13 of 1949 (42 U.S.C. 1490) is amended by striking ‘‘year

14 2000’’ and inserting ‘‘year 2010’’.

15 SEC. 1005. OPERATING ASSISTANCE FOR MIGRANT FARM16 WORKERS PROJECTS.

17 The last sentence of section 521(a)(5)(A) of the Hous18 ing Act of 1949 (42 U.S.C. 1490a(a)(5)(A)) is amended by

19 striking ‘‘project’’ and inserting ‘‘tenant or unit’’.

20 SEC. 1006. MULTIFAMILY RENTAL HOUSING LOAN GUAR21 ANTEE PROGRAM.

22 Section 538 of the Housing Act of 1949 (42 U.S.C.

23 1490p–2) is amended—

24 (1) in subsection (c), by inserting ‘‘an Indian or25 ganization,’’ after ‘‘thereof,’’;
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1 (2) in subsection (f), by striking paragraph (1)

2 and inserting the following new paragraph:

3 ‘‘(1) be made for a period of not less than 25 nor

4 greater than 40 years from the date the loan was

5 made and may provide for amortization of the loan

6 over a period of not to exceed 40 years with a final

7 payment of the balance due at the end of the loan

8 term;’’;

9 (3) in subsection (i)(2), by striking ‘‘(A) convey10 ance to the Secretary’’ and all that follows through

11 ‘‘(C) assignment’’ and inserting ‘‘(A) submission to

12 the Secretary of a claim for payment under the guar13 antee, and (B) assignment’’;

14 (4) in subsection (s), by adding at the end the

15 following new subsection:

16 ‘‘(4) INDIAN ORGANIZATION.—The term ‘Indian

17 organization’ means the governing body of an Indian

18 tribe, band, group, pueblo, or community, including

19 native villages or native groups, as defined by the

20 Alaska Claims Settlement Act (43 U.S.C. 1601 et

21 seq.), (including corporations organized by the Kenai,

22 Juneau, Sitka, and Kodiak) which is eligible for serv23 ices from the Bureau of Indian Affairs or an entity

24 established or recognized by the governing body for the

25 purpose of financing economic development.’’;
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1 (5) in subsection (t), by inserting before the pe2 riod at the end the following: ‘‘to provide guarantees

3 under this section for eligible loans having an aggre4 gate principal amount of $500,000,000’’;

5 (6) by striking subsection (l);

6 (7) by redesignating subsections (m) through (u)

7 as subsections (l) through (t), respectively;

8 (8) by adding at the end the following new sub9 sections:

10 ‘‘(u) FEE AUTHORITY.—

11 ‘‘(1) IN GENERAL.—Any amounts collected by the

12 Secretary pursuant to the fees charged to lenders for

13 loan guarantees issued under this section shall be used

14 to offset costs (as defined by section 502 of the Con15 gressional Budget Act of 1974 (2 U.S.C. 661a)) of

16 loan guarantees made under this section.

17 ‘‘(2) EXCESS FUNDS.—Any fees described in

18 paragraph (1) collected in excess of the amount re19 quired in paragraph (1) during a fiscal year, shall be

20 available to the Secretary, without further appropria21 tion and without fiscal year limitation, for use by the

22 Secretary for costs of administering (including moni23 toring) program activities authorized pursuant to this

24 section and shall be in addition to other funds made

25 available for this purpose.
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1 ‘‘(v) DEFAULTS OF LOANS SECURED BY RESERVATION

2 LANDS.—In the event of a default involving a loan to an

3 Indian tribe or tribal corporation made under this section

4 which is secured by an interest in land within such tribe’s

5 reservation (as determined by the Secretary of the Interior),

6 including a community in Alaska incorporated by the Sec7 retary of the Interior pursuant to the Indian Reorganiza8 tion Act (25 U.S.C. 461 et seq.), the lender shall only pursue

9 liquidation after offering to transfer the account to an eligi10 ble tribal member, the tribe, or the Indian housing author11 ity serving the tribe. If the lender subsequently proceeds to

12 liquidate the account, the lender shall not sell, transfer, or

13 otherwise dispose of or alienate the property except to one

14 of the entities described in the preceding sentence.’’.

15 SEC. 1007. ENFORCEMENT PROVISIONS.

16 (a) IN GENERAL.—Title V of the Housing Act of 1949

17 (42 U.S.C. 1471 et seq.) is amended by adding after section

18 542 the following:

19 ‘‘SEC. 543. ENFORCEMENT PROVISIONS.

20 ‘‘(a) EQUITY SKIMMING.—

21 ‘‘(1) CRIMINAL PENALTY.—Whoever, as an

22 owner, agent, employee, or manager, or is otherwise

23 in custody, control, or possession of property that is

24 security for a loan made or guaranteed under this

25 title, willfully uses, or authorizes the use, of any part
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1 of the rents, assets, proceeds, income, or other funds

2 derived from such property, for any purpose other

3 than to meet actual, reasonable, and necessary ex4 penses of the property, or for any other purpose not

5 authorized by this title or the regulations adopted

6 pursuant to this title, shall be fined under title 18,

7 United States Code, or imprisoned not more than 5

8 years, or both.

9 ‘‘(2) CIVIL SANCTIONS.—An entity or individual

10 who as an owner, operator, employee, or manager, or

11 who acts as an agent for a property that is security

12 for a loan made or guaranteed under this title where

13 any part of the rents, assets, proceeds, income, or

14 other funds derived from such property are used for

15 any purpose other than to meet actual, reasonable,

16 and necessary expenses of the property, or for any

17 other purpose not authorized by this title or the regu18 lations adopted pursuant to this title, shall be subject

19 to a fine of not more than $25,000 per violation. The

20 sanctions provided in this paragraph may be imposed

21 in addition to any other civil sanctions or civil mone22 tary penalties authorized by law.

23 ‘‘(b) CIVIL MONETARY PENALTIES.—

24 ‘‘(1) IN GENERAL.—The Secretary may, after no25 tice and opportunity for a hearing, impose a civil
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1 monetary penalty in accordance with this subsection

2 against any individual or entity, including its own3 ers, officers, directors, general partners, limited part4 ners, or employees, who knowingly and materially

5 violate, or participate in the violation of, the provi6 sions of this title, the regulations issued by the Sec7 retary pursuant to this title, or agreements made in

8 accordance with this title, by—

9 ‘‘(A) submitting information to the Sec10 retary that is false;

11 ‘‘(B) providing the Secretary with false cer12 tifications;

13 ‘‘(C) failing to submit information re14 quested by the Secretary in a timely manner;

15 ‘‘(D) failing to maintain the property sub16 ject to loans made or guaranteed under this title

17 in good repair and condition, as determined by

18 the Secretary;

19 ‘‘(E) failing to provide management for a

20 project which received a loan made or guaran21 teed under this title that is acceptable to the Sec22 retary; or

23 ‘‘(F) failing to comply with the provisions

24 of applicable civil rights statutes and regula25 tions.
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1 ‘‘(2) CONDITIONS FOR RENEWAL OR EXTEN2 SION.—The Secretary may require that expiring loan

3 or assistance agreements entered into under this title

4 shall not be renewed or extended unless the owner exe5 cutes an agreement to comply with additional condi6 tions prescribed by the Secretary, or executes a new

7 loan or assistance agreement in the form prescribed

8 by the Secretary.

9 ‘‘(3) AMOUNT.—

10 ‘‘(A) IN GENERAL.—The amount of a civil

11 monetary penalty imposed under this subsection

12 shall not exceed the greater of—

13 ‘‘(i) twice the damages the Department

14 of Agriculture, the guaranteed lender, or the

15 project that is secured for a loan under this

16 section suffered or would have suffered as a

17 result of the violation; or

18 ‘‘(ii) $50,000 per violation.

19 ‘‘(B) DETERMINATION.—In determining the

20 amount of a civil monetary penalty under this

21 subsection, the Secretary shall take into

22 consideration—

23 ‘‘(i) the gravity of the offense;
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1 ‘‘(ii) any history of prior offenses by

2 the violator (including offenses occurring

3 prior to the enactment of this section);

4 ‘‘(iii) the ability of the violator to pay

5 the penalty;

6 ‘‘(iv) any injury to tenants;

7 ‘‘(v) any injury to the public;

8 ‘‘(vi) any benefits received by the viola9 tor as a result of the violation;

10 ‘‘(vii) deterrence of future violations;

11 and

12 ‘‘(viii) such other factors as the Sec13 retary may establish by regulation.

14 ‘‘(4) PAYMENT OF PENALTIES.—No payment of a

15 penalty assessed under this section may be made from

16 funds provided under this title or from funds of a

17 project which serve as security for a loan made or

18 guaranteed under this title.

19 ‘‘(5) REMEDIES FOR NONCOMPLIANCE.—

20 ‘‘(A) JUDICIAL INTERVENTION.—If a person

21 or entity fails to comply with a final determina22 tion by the Secretary imposing a civil monetary

23 penalty under this subsection, the Secretary may

24 request the Attorney General of the United States

25 to bring an action in an appropriate United
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1 States district court to obtain a monetary judg2 ment against such individual or entity and such

3 other relief as may be available. The monetary

4 judgment may, in the court’s discretion, include

5 the attorney’s fees and other expenses incurred by

6 the United States in connection with the action.

7 ‘‘(B) REVIEWABILITY OF DETERMINA8 TION.—In an action under this paragraph, the

9 validity and appropriateness of a determination

10 by the Secretary imposing the penalty shall not

11 be subject to review.’’.

12 (b) CONFORMING AMENDMENT.—Section 514 of the

13 Housing Act of 1949 (42 U.S.C. 1484) is amended by strik14 ing subsection (j).

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

16 CODE.

17 (a) MONEY LAUNDERING.—Section 1956(c)(7)(D) of

18 title 18, United States Code, is amended by inserting ‘‘any

19 violation of section 543(a)(1) of the Housing Act of 1949

20 (relating to equity skimming),’’ after ‘‘coupons having a

21 value of not less than $5,000,’’.

22 (b) OBSTRUCTION OF FEDERAL AUDITS.—Section

23 1516(a) of title 18, United States Code, is amended by in24 serting ‘‘or relating to any property that is security for a
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1 loan that is made or guaranteed under title V of the Hous2 ing Act of 1949,’’ before ‘‘shall be fined under this title’’.

3 TITLE XI—MANUFACTURED

4 HOUSING IMPROVEMENT

5 SEC. 1101. SHORT TITLE AND REFERENCES.

6 (a) SHORT TITLE.—This title may be cited as the

7 ‘‘Manufactured Housing Improvement Act’’.

8 (b) REFERENCES.—Whenever in this title an amend9 ment is expressed in terms of an amendment to, or repeal

10 of, an Act, a section, or any other provision, the reference

11 shall be considered to be made to that section or other provi12 sion of the National Manufactured Housing Construction

13 and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).

14 SEC. 1102. FINDINGS AND PURPOSES.

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

16 follows:

17 ‘‘FINDINGS AND PURPOSES

18 ‘‘SEC. 602. (a) FINDINGS.—The Congress finds that—

19 ‘‘(1) manufactured housing plays a vital role in

20 meeting the housing needs of the Nation; and

21 ‘‘(2) manufactured homes provide a significant

22 resource for affordable homeownership and rental

23 housing accessible to all Americans.

24 ‘‘(b) PURPOSES.—The purposes of this title are—

25 ‘‘(1) to facilitate the acceptance of the quality,

26 durability, safety, and affordability of manufactured
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1 housing within the Department of Housing and

2 Urban Development;

3 ‘‘(2) to facilitate the availability of affordable

4 manufactured homes and to increase homeownership

5 for all Americans;

6 ‘‘(3) to provide for the establishment of practical,

7 uniform, and, to the extent possible, performance8 based Federal construction standards;

9 ‘‘(4) to encourage innovative and cost-effective

10 construction techniques;

11 ‘‘(5) to protect owners of manufactured homes

12 from unreasonable risk of personal injury and prop13 erty damage;

14 ‘‘(6) to establish a balanced consensus process for

15 the development, revision, and interpretation of Fed16 eral construction and safety standards for manufac17 tured homes and related regulations for the enforce18 ment of such standards;

19 ‘‘(7) to ensure uniform and effective enforcement

20 of Federal construction and safety standards for man21 ufactured homes; and

22 ‘‘(8) to ensure that the public interest in, and

23 need for, affordable manufactured housing is duly

24 considered in all determinations relating to the Fed25 eral standards and their enforcement.’’.
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1 SEC. 1103. DEFINITIONS.

2 (a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is

3 amended—

4 (1) in paragraph (2), by striking ‘‘dealer’’ and

5 inserting ‘‘retailer’’;

6 (2) in paragraph (12), by striking ‘‘and’’ at the

7 end;

8 (3) in paragraph (13), by striking the period at

9 the end and inserting a semicolon; and

10 (4) by adding at the end the following new para11 graphs:

12 ‘‘(14) ‘administering organization’ means the

13 recognized, voluntary, private sector, consensus stand14 ards body with specific experience in developing

15 model residential building codes and standards in16 volving all disciplines regarding construction and

17 safety that administers the consensus standards devel18 opment process;

19 ‘‘(15) ‘consensus committee’ means the committee

20 established under section 604(a)(3);

21 ‘‘(16) ‘consensus standards development process’

22 means the process by which additions, revisions, and

23 interpretations to the Federal manufactured home

24 construction and safety standards and enforcement

25 regulations shall be developed and recommended to the

26 Secretary by the consensus committee;
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1 ‘‘(17) ‘primary inspection agency’ means a State

2 agency or private organization that has been ap3 proved by the Secretary to act as a design approval

4 primary inspection agency or a production inspection

5 primary inspection agency, or both;

6 ‘‘(18) ‘design approval primary inspection agen7 cy’ means a State agency or private organization that

8 has been approved by the Secretary to evaluate and

9 either approve or disapprove manufactured home de10 signs and quality control procedures;

11 ‘‘(19) ‘production inspection primary inspection

12 agency’ means a State agency or private organization

13 that has been approved by the Secretary to evaluate

14 the ability of manufactured home manufacturing

15 plants to comply with approved quality control proce16 dures and with the Federal manufactured home con17 struction and safety standards promulgated here18 under;

19 ‘‘(20) ‘installation standards’ means reasonable

20 specifications for the installation of a manufactured

21 home, at the place of occupancy, to ensure proper

22 siting, the joining of all sections of the home, and the

23 installation of stabilization, support, or anchoring

24 systems; and

25 ‘‘(21) ‘monitoring’—
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1 ‘‘(A) means the process of periodic review of

2 the primary inspection agencies, by the Sec3 retary or by a State agency under an approved

4 State plan pursuant to section 623, in accord5 ance with regulations recommended by the con6 sensus committee and promulgated in accordance

7 with section 604(b), which process shall be for

8 the purpose of ensuring that the primary inspec9 tion agencies are discharging their duties under

10 this title; and

11 ‘‘(B) may include the periodic inspection of

12 retail locations for transit damage, label tam13 pering, and retailer compliance with this title.’’.

14 (b) CONFORMING AMENDMENTS.—The Act is

15 amended—

16 (1) in section 613 (42 U.S.C. 5412), by striking

17 ‘‘dealer’’ each place it appears and inserting ‘‘re18 tailer’’;

19 (2) in section 614(f) (42 U.S.C. 5413(f)), by

20 striking ‘‘dealer’’ each place it appears and inserting

21 ‘‘retailer’’;

22 (3) in section 615 (42 U.S.C. 5414)—

23 (A) in subsection (b)(1), by striking ‘‘deal24 er’’ and inserting ‘‘retailer’’;
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1 (B) in subsection (b)(3), by striking ‘‘dealer

2 or dealers’’ and inserting ‘‘retailer or retailers’’;

3 and

4 (C) in subsections (d) and (f), by striking

5 ‘‘dealers’’ each place it appears and inserting

6 ‘‘retailers’’;

7 (4) in section 616 (42 U.S.C. 5415), by striking

8 ‘‘dealer’’ and inserting ‘‘retailer’’; and

9 (5) in section 623(c)(9), by striking ‘‘dealers’’

10 and inserting ‘‘retailers’’.

11 SEC. 1104. FEDERAL MANUFACTURED HOME CONSTRUC12 TION AND SAFETY STANDARDS.

13 Section 604 (42 U.S.C. 5403) is amended—

14 (1) by striking subsections (a) and (b) and in15 serting the following new subsections:

16 ‘‘(a) ESTABLISHMENT.—

17 ‘‘(1) AUTHORITY.—The Secretary shall establish,

18 by order, appropriate Federal manufactured home

19 construction and safety standards, each of which—

20 ‘‘(A) shall—

21 ‘‘(i) be reasonable and practical;

22 ‘‘(ii) meet high standards of protection

23 consistent with the enumerated purposes of

24 this title; and
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1 ‘‘(iii) where appropriate, be perform2 ance-based and objectively stated; and

3 ‘‘(B) except as provided in subsection (b),

4 shall be established in accordance with the con5 sensus standards development process.

6 ‘‘(2) CONSENSUS STANDARDS AND REGULATORY

7 DEVELOPMENT PROCESS.—

8 ‘‘(A) INITIAL AGREEMENT.—Not later than

9 180 days after the date of enactment of the Man10 ufactured Housing Improvement Act, the Sec11 retary shall enter into a contract with an ad12 ministering organization. The contractual agree13 ment shall—

14 ‘‘(i) terminate on the date on which a

15 contract is entered into under subparagraph

16 (B); and

17 ‘‘(ii) require the administering organi18 zation to—

19 ‘‘(I) appoint the initial members

20 of the consensus committee under para21 graph (3);

22 ‘‘(II) administer the consensus

23 standards development process until

24 the termination of that agreement; and
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1 ‘‘(III) administer the consensus

2 development and interpretation process

3 for procedural and enforcement regula4 tions and regulations specifying the

5 permissible scope and conduct of moni6 toring until the termination of that

7 agreement.

8 ‘‘(B) COMPETITIVELY PROCURED CON9 TRACT.—Upon the expiration of the 4-year pe10 riod beginning on the date on which all members

11 of the consensus committee are appointed under

12 paragraph (3), the Secretary shall, using com13 petitive procedures (as such term is defined in

14 section 4 of the Office of Federal Procurement

15 Policy Act), enter into a competitively awarded

16 contract with an administering organization.

17 The administering organization shall administer

18 the consensus process for the development and in19 terpretation of the Federal standards, the proce20 dural and enforcement regulations and regula21 tions specifying the permissible scope and con22 duct of monitoring in accordance with this title.

23 ‘‘(C) PERFORMANCE REVIEW.—The

24 Secretary—
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1 ‘‘(i) shall periodically review the per2 formance of the administering organization;

3 and

4 ‘‘(ii) may replace the administering

5 organization with another qualified tech6 nical or building code organization, pursu7 ant to competitive procedures, if the Sec8 retary determines in writing that the ad9 ministering organization is not fulfilling

10 the terms of the agreement or contract to

11 which the administering organization is

12 subject or upon the expiration of the agree13 ment or contract.

14 ‘‘(3) CONSENSUS COMMITTEE.—

15 ‘‘(A) PURPOSE.—There is established a

16 committee to be known as the ‘consensus com17 mittee’, which shall, in accordance with this

18 title—

19 ‘‘(i) provide periodic recommendations

20 to the Secretary to adopt, revise, and inter21 pret the Federal manufactured housing con22 struction and safety standards in accord23 ance with this subsection;

24 ‘‘(ii) provide periodic recommendations

25 to the Secretary to adopt, revise, and inter-
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1 pret the procedural and enforcement regula2 tions, including regulations specifying the

3 permissible scope and conduct of monitoring

4 in accordance with this subsection; and

5 ‘‘(iii) be organized and carry out its

6 business in a manner that guarantees a fair

7 opportunity for the expression and consider8 ation of various positions and for public

9 participation.

10 ‘‘(B) MEMBERSHIP.—The consensus com11 mittee shall be composed of—

12 ‘‘(i) 21 voting members appointed, sub13 ject to approval by the Secretary, by the ad14 ministering organization from among indi15 viduals who are qualified by background

16 and experience to participate in the work of

17 the consensus committee; and

18 ‘‘(ii) 1 member appointed by the Sec19 retary to represent the Secretary on the con20 sensus committee, who shall be a nonvoting

21 member.

22 ‘‘(C) DISAPPROVAL.—The Secretary may

23 disapprove, in writing with the reasons set forth,

24 the appointment of an individual under sub25 paragraph (B)(i).
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1 ‘‘(D) SELECTION PROCEDURES AND RE2 QUIREMENTS.—Each member shall be appointed

3 in accordance with the selection procedures,

4 which shall be established by the Secretary and

5 which shall be based on the procedures for con6 sensus committees promulgated by the American

7 National Standards Institute (or successor orga8 nization), to ensure equal representation on the

9 consensus committee of the following interest cat10 egories:

11 ‘‘(i) PRODUCERS.—7 producers or re12 tailers of manufactured housing.

13 ‘‘(ii) USERS.—7 persons representing

14 consumer interests, such as consumer orga15 nizations, recognized consumer leaders, and

16 owners who are residents of manufactured

17 homes.

18 ‘‘(iii) GENERAL INTEREST AND PUBLIC

19 OFFICIALS.—7 general interest and public

20 official members.

21 ‘‘(E) BALANCING OF INTERESTS.—

22 ‘‘(i) IN GENERAL.—In order to achieve

23 a proper balance of interests on the con24 sensus committee—
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1 ‘‘(I) the administering organiza2 tion in its appointments shall ensure

3 that all directly and materially af4 fected interests have the opportunity

5 for fair and equitable participation

6 without dominance by any single in7 terest; and

8 ‘‘(II) the Secretary may reject the

9 appointment of any 1 or more individ10 uals in order to ensure that there is

11 not dominance by any single interest.

12 ‘‘(ii) DOMINANCE DEFINED.—In this

13 subparagraph, the term ‘dominance’ means

14 a position or exercise of dominant author15 ity, leadership, or influence by reason of su16 perior leverage, strength, or representation.

17 ‘‘(F) ADDITIONAL QUALIFICATIONS.—

18 ‘‘(i) FINANCIAL INDEPENDENCE.—No

19 individual appointed under subparagraph

20 (D)(ii) shall have, and 3 of individuals ap21 pointed under subparagraph (D)(iii) shall

22 not have—

23 ‘‘(I) a significant financial inter24 est in any segment of the manufac25 tured housing industry; or
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1 ‘‘(II) a significant relationship to

2 any person engaged in the manufac3 tured housing industry.

4 ‘‘(ii) POST-EMPLOYMENT BAN.—An in5 dividual appointed under clause (ii) or (iii)

6 of subparagraph (D) shall be subject to a

7 ban disallowing compensation from the

8 manufactured housing industry during the

9 period of, and for the 1-year period after,

10 membership of that individual on the con11 sensus committee.

12 ‘‘(G) MEETINGS.—

13 ‘‘(i) NOTICE; OPEN TO PUBLIC.—The

14 consensus committee shall provide advance

15 notice of each meeting of the consensus com16 mittee to the Secretary and publish advance

17 notice of each such meeting in the Federal

18 Register. All meetings of the consensus com19 mittee shall be open to the public.

20 ‘‘(ii) REIMBURSEMENT.—Members of

21 the consensus committee in attendance at

22 the meetings shall be reimbursed for their

23 actual expenses as authorized by section

24 5703 of title 5, United States Code, for per-
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1 sons employed intermittently in Govern2 ment service.

3 ‘‘(H) INAPPLICABILITY OF OTHER LAWS.—

4 ‘‘(i) ADVISORY COMMITTEE ACT.—The

5 consensus committee shall not be considered

6 to be an advisory committee for purposes of

7 the Federal Advisory Committee Act.

8 ‘‘(ii) TITLE 18.—The members of the

9 consensus committee shall not be subject to

10 section 203, 205, 207, or 208 of title 18,

11 United States Code, to the extent of their

12 proper participation as members of the con13 sensus committee.

14 ‘‘(iii) ETHICS IN GOVERNMENT ACT OF

15 1978.—The Ethics in Government Act of

16 1978 shall not apply to members of the con17 sensus committee to the extent of their prop18 er participation as members of the con19 sensus committee.

20 ‘‘(I) ADMINISTRATION.—The consensus com21 mittee and the administering organization

22 shall—

23 ‘‘(i) operate in conformance with the

24 procedures established by the American Na25 tional Standards Institute for the develop-
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1 ment and coordination of American Na2 tional Standards; and

3 ‘‘(ii) apply to the American National

4 Standards Institute and take such other ac5 tions as may be necessary to obtain accredi6 tation from the American National Stand7 ards Institute.

8 ‘‘(J) STAFF.—The administering organiza9 tion shall, upon the request of the consensus com10 mittee, provide reasonable staff resources to the

11 consensus committee. Upon a showing of need,

12 the Secretary shall furnish technical support to

13 any of the various interest categories on the con14 sensus committee.

15 ‘‘(K) DATE OF INITIAL APPOINTMENTS.—

16 The initial appointments of all of the members

17 of the consensus committee shall be completed not

18 later than 90 days after the date on which an

19 administration agreement under paragraph

20 (2)(A) is completed with the administering orga21 nization.

22 ‘‘(4) REVISIONS OF STANDARDS.—

23 ‘‘(A) IN GENERAL.—Beginning on the date

24 on which all members of the consensus committee

25 are appointed under paragraph (3), the con-
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1 sensus committee shall, not less than once during

2 each 2-year period—

3 ‘‘(i) consider revisions to the Federal

4 manufactured home construction and safety

5 standards; and

6 ‘‘(ii) submit proposed revised stand7 ards and regulations, if approved in a vote

8 of the consensus committee by two-thirds of

9 the members, to the Secretary in the form of

10 a proposed rule, including an economic

11 analysis.

12 ‘‘(B) PUBLICATION OF PROPOSED REVISED

13 STANDARDS.—

14 ‘‘(i) PUBLICATION BY SECRETARY.—

15 The consensus committee shall provide a

16 proposed revised standard under subpara17 graph (A)(ii) to the Secretary who shall, not

18 later than 30 days after receipt, publish

19 such proposed revised standard in the Fed20 eral Register for notice and comment. Un21 less clause (ii) applies, the Secretary shall

22 provide an opportunity for public comment

23 on such proposed revised standard and any

24 such comments shall be submitted directly

25 to the consensus committee without delay.
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1 ‘‘(ii) PUBLICATION OF REJECTED PRO2 POSED REVISED STANDARD.—If the Sec3 retary rejects the proposed revised standard,

4 the Secretary shall publish the rejected pro5 posed revised standard in the Federal Reg6 ister with the reasons for rejection and any

7 recommended modifications set forth.

8 ‘‘(C) PRESENTATION OF PUBLIC COMMENTS;

9 PUBLICATION OF RECOMMENDED REVISIONS.—

10 ‘‘(i) PRESENTATION.—Any public com11 ments, views, and objections to a proposed

12 revised standard published under subpara13 graph (B) shall be presented by the Sec14 retary to the consensus committee upon

15 their receipt and in the manner received, in

16 accordance with procedures established by

17 the American National Standards Institute.

18 ‘‘(ii) PUBLICATION BY THE SEC19 RETARY.—The consensus committee shall

20 provide to the Secretary any revisions pro21 posed by the consensus committee, which the

22 Secretary shall, not later than 7 calendar

23 days after receipt, cause to be published in

24 the Federal Register as a notice of the rec25 ommended revisions of the consensus com-
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1 mittee to the standard, a notice of the sub2 mission of the recommended revisions to the

3 Secretary, and a description of the cir4 cumstances under which the proposed re5 vised standards could become effective.

6 ‘‘(iii) PUBLICATION OF REJECTED PRO7 POSED REVISED STANDARD.—If the Sec8 retary rejects the proposed revised standard,

9 the Secretary shall publish the rejected pro10 posed revised standard in the Federal Reg11 ister with the reasons for rejection and any

12 recommended modifications set forth.

13 ‘‘(5) REVIEW BY THE SECRETARY.—

14 ‘‘(A) IN GENERAL.—The Secretary shall ei15 ther adopt, modify, or reject a standard, as sub16 mitted by the consensus committee under para17 graph (4)(A).

18 ‘‘(B) TIMING.—Not later than 12 months

19 after the date on which a standard is submitted

20 to the Secretary by the consensus committee, the

21 Secretary shall take action regarding such stand22 ard under subparagraph (C).

23 ‘‘(C) PROCEDURES.—If the Secretary—
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1 ‘‘(i) adopts a standard recommended

2 by the consensus committee, the Secretary

3 shall—

4 ‘‘(I) issue a final order without

5 further rulemaking; and

6 ‘‘(II) cause the final order to be

7 published in the Federal Register;

8 ‘‘(ii) determines that any standard

9 should be rejected, the Secretary shall—

10 ‘‘(I) reject the standard; and

11 ‘‘(II) cause to be published in the

12 Federal Register a notice to that effect,

13 together with the reason or reasons for

14 rejecting the proposed standard; or

15 ‘‘(iii) determines that a standard rec16 ommended by the consensus committee

17 should be modified, the Secretary shall—

18 ‘‘(I) cause the proposed modified

19 standard to be published in the Federal

20 Register, together with an explanation

21 of the reason or reasons for the deter22 mination of the Secretary; and

23 ‘‘(II) provide an opportunity for

24 public comment in accordance with
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1 section 553 of title 5, United States

2 Code.

3 ‘‘(D) FINAL ORDER.—Any final standard

4 under this paragraph shall become effective pur5 suant to subsection (c).

6 ‘‘(6) FAILURE TO ACT.—If the Secretary fails to

7 take final action under paragraph (5) and to publish

8 notice of the action in the Federal Register before the

9 expiration of the 12-month period beginning on the

10 date on which the proposed standard is submitted to

11 the Secretary under paragraph (4)(A)—

12 ‘‘(A) the recommendations of the consensus

13 committee—

14 ‘‘(i) shall be considered to have been

15 adopted by the Secretary; and

16 ‘‘(ii) shall take effect upon the expira17 tion of the 180-day period that begins upon

18 the conclusion of such 12-month period; and

19 ‘‘(B) not later than 10 days after the expi20 ration of such 12-month period, the Secretary

21 shall cause to be published in the Federal Reg22 ister a notice of the failure of the Secretary to

23 act, the revised standard, and the effective date

24 of the revised standard, which notice shall be

25 deemed to be an order of the Secretary approving
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1 the revised standards proposed by the consensus

2 committee.

3 ‘‘(b) OTHER ORDERS.—

4 ‘‘(1) REGULATIONS.—The Secretary may issue

5 procedural and enforcement regulations as necessary

6 to implement the provisions of this title. The con7 sensus committee may submit to the Secretary pro8 posed procedural and enforcement regulations and

9 recommendations for the revision of such regulations.

10 ‘‘(2) INTERPRETATIVE BULLETINS.—The Sec11 retary may issue interpretative bulletins to clarify the

12 meaning of any Federal manufactured home construc13 tion and safety standard or procedural and enforce14 ment regulation. The consensus committee may sub15 mit to the Secretary proposed interpretative bulletins

16 to clarify the meaning of any Federal manufactured

17 home construction and safety standard or procedural

18 and enforcement regulation.

19 ‘‘(3) REVIEW BY CONSENSUS COMMITTEE.—Be20 fore issuing a procedural or enforcement regulation or

21 an interpretative bulletin—

22 ‘‘(A) the Secretary shall—

23 ‘‘(i) submit the proposed procedural or

24 enforcement regulation or interpretative

25 bulletin to the consensus committee; and
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1 ‘‘(ii) provide the consensus committee

2 with a period of 120 days to submit written

3 comments to the Secretary on the proposed

4 procedural or enforcement regulation or the

5 interpretative bulletin; and

6 ‘‘(B) if the Secretary rejects any significant

7 comment provided by the consensus committee

8 under subparagraph (A), the Secretary shall pro9 vide a written explanation of the reasons for the

10 rejection to the consensus committee; and

11 ‘‘(C) following compliance with subpara12 graphs (A) and (B), the Secretary shall—

13 ‘‘(i) cause the proposed regulation or

14 interpretative bulletin and the consensus

15 committee’s written comments along with

16 the Secretary’s response thereto to be pub17 lished in the Federal Register; and

18 ‘‘(ii) provide an opportunity for public

19 comment in accordance with section 553 of

20 title 5, United States Code.

21 ‘‘(4) REQUIRED ACTION.—The Secretary shall

22 act on any proposed regulation or interpretative bul23 letin submitted by the consensus committee by ap24 proving or rejecting the proposal within 120 days
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1 from the date the proposal is received by the Sec2 retary. The Secretary shall either—

3 ‘‘(A) approve the proposal and cause the

4 proposed regulation or interpretative bulletin to

5 be published for public comment in accordance

6 with section 553 of title 5, United States Code;

7 or

8 ‘‘(B) reject the proposed regulation or inter9 pretative bulletin and—

10 ‘‘(i) provide a written explanation of

11 the reasons for rejection to the consensus

12 committee; and

13 ‘‘(ii) cause the proposed regulation and

14 the written explanation for the rejection to

15 be published in the Federal Register.

16 ‘‘(5) EMERGENCY ORDERS.—If the Secretary de17 termines, in writing, that such action is necessary in

18 order to respond to an emergency which jeopardizes

19 the public health or safety, or to address an issue on

20 which the Secretary determines that the consensus

21 committee has not made a timely recommendation,

22 following a request by the Secretary, the Secretary

23 may issue an order that is not developed under the

24 procedures set forth in subsection (a) or in this sub25 section, if the Secretary—
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1 ‘‘(A) provides to the consensus committee a

2 written description and sets forth the reasons

3 why emergency action is necessary and all sup4 porting documentation; and

5 ‘‘(B) issues and publishes the order in the

6 Federal Register.

7 ‘‘(6) CHANGES.—Any statement of policies, prac8 tices, or procedures relating to construction and safety

9 standards, inspections, monitoring, or other enforce10 ment activities which constitutes a statement of gen11 eral or particular applicability and future offset and

12 decisions to implement, interpret, or prescribe law of

13 policy by the Secretary is subject to the provisions of

14 subsection (a) or (b) of this subsection. Any change

15 adopted in violation of the provisions of subsection

16 (a) or (b) of this subsection is void.

17 ‘‘(7) TRANSITION.—Until the date that the con18 sensus committee is appointed pursuant to section

19 1104(a)(3), the Secretary may issue proposed orders

20 that are not developed under the procedures set forth

21 in this section for new and revised standards.’’;

22 (2) in subsection (d), by adding at the end the

23 following: ‘‘Federal preemption under this subsection

24 shall be broadly and liberally construed to ensure that

25 disparate State or local requirements or standards do
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1 not affect the uniformity and comprehensiveness of the

2 standards promulgated hereunder nor the Federal su3 perintendence of the manufactured housing industry

4 as established by this title. Subject to section 605,

5 there is reserved to each State the right to establish

6 standards for the stabilizing and support systems of

7 manufactured homes sited within that State, and for

8 the foundations on which manufactured homes sited

9 within that State are installed, and the right to en10 force compliance with such standards, except that

11 such standards shall be consistent with the purposes

12 of this title and shall be consistent with the design of

13 the manufacturer.’’;

14 (3) by striking subsection (e);

15 (4) in subsection (f), by striking the subsection

16 designation and all of the matter that precedes para17 graph (1) and inserting the following:

18 ‘‘(e) CONSIDERATIONS IN ESTABLISHING AND INTER19 PRETING STANDARDS AND REGULATIONS.—The consensus

20 committee, in recommending standards, regulations, and

21 interpretations, and the Secretary, in establishing stand22 ards or regulations, or issuing interpretations under this

23 section, shall—’’;

24 (5) by striking subsection (g);
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1 (6) in the first sentence of subsection (j), by

2 striking ‘‘subsection (f)’’ and inserting ‘‘subsection

3 (e)’’; and

4 (7) by redesignating subsections (h), (i), and (j),

5 as subsections (f), (g), and (h), respectively.

6 SEC. 1105. ABOLISHMENT OF NATIONAL MANUFACTURED

7 HOME ADVISORY COUNCIL; MANUFACTURED

8 HOME INSTALLATION.

9 (a) IN GENERAL.—Section 605 (42 U.S.C. 5404) is

10 amended to read as follows:

11 ‘‘SEC. 605. MANUFACTURED HOME INSTALLATION.

12 ‘‘(a) PROVISION OF INSTALLATION DESIGN AND IN13 STRUCTIONS.—A manufacturer shall provide with each

14 manufactured home, design and instructions for the instal15 lation of the manufactured home that have been approved

16 by a design approval primary inspection agency. After es17 tablishment of model standards under subsection (b)(2), a

18 design approval primary inspection agency may not give

19 such approval unless a design and instruction provides

20 equal or greater protection than the protection provided

21 under such model standards.

22 ‘‘(b) MODEL MANUFACTURED HOME INSTALLATION

23 STANDARDS.—

24 ‘‘(1) PROPOSED MODEL STANDARDS.—Not later

25 than 18 months after the date on which the initial
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1 appointments of all of the members of the consensus

2 committee are completed, the consensus committee

3 shall develop and submit to the Secretary proposed

4 model manufactured home installation standards,

5 which shall, to the maximum extent possible, taking

6 into account the factors described in section 604(e), be

7 consistent with—

8 ‘‘(A) the home designs that have been ap9 proved by a design approval primary inspection

10 agency; and

11 ‘‘(B) the designs and instructions for the in12 stallation of manufactured homes provided by

13 manufacturers under subsection (a).

14 ‘‘(2) ESTABLISHMENT OF MODEL STANDARDS.—

15 Not later than 12 months after receiving the proposed

16 model standards submitted under paragraph (1), the

17 Secretary shall develop and establish model manufac18 tured home installation standards, which shall be con19 sistent with—

20 ‘‘(A) the home designs that have been ap21 proved by a design approval primary inspection

22 agency; and

23 ‘‘(B) the designs and instructions for the in24 stallation of manufactured homes provided by

25 manufacturers under subsection (a).
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1 ‘‘(3) FACTORS FOR CONSIDERATION.—

2 ‘‘(A) CONSENSUS COMMITTEE.—In devel3 oping the proposed model standards under para4 graph (1), the consensus committee shall consider

5 the factors described in section 604(e).

6 ‘‘(B) SECRETARY.—In developing and es7 tablishing the model standards under paragraph

8 (2), the Secretary shall consider the factors de9 scribed in section 604(e).

10 ‘‘(c) MANUFACTURED HOME INSTALLATION PRO11 GRAMS.—

12 ‘‘(1) PROTECTION OF MANUFACTURED HOUSING

13 RESIDENTS DURING INITIAL PERIOD.—During the 5-

14 year period beginning on the date of enactment of the

15 Manufactured Housing Improvement Act, no State or

16 manufacturer may establish or implement any instal17 lation standards that, in the determination of the

18 Secretary, provide less protection to the residents of

19 manufactured homes than the protection provided by

20 the installation standards in effect with respect to the

21 State or manufacturer, as applicable, on the date of

22 enactment of the Manufactured Housing Improvement

23 Act.

24 ‘‘(2) INSTALLATION STANDARDS.—
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1 ‘‘(A) ESTABLISHMENT OF INSTALLATION

2 PROGRAM.—Not later than the expiration of the

3 5-year period described in paragraph (1), the

4 Secretary shall establish an installation program

5 that meets the requirements of paragraph (3) for

6 the enforcement of installation standards in each

7 State described in subparagraph (B).

8 ‘‘(B) IMPLEMENTATION OF INSTALLATION

9 PROGRAM.—Beginning on the expiration of the

10 5-year period described in paragraph (1), the

11 Secretary shall implement the installation pro12 gram established under subparagraph (A) in

13 each State that does not have an installation

14 program established by State law that meets the

15 requirements of paragraph (3).

16 ‘‘(C) CONTRACTING OUT OF IMPLEMENTA17 TION.—In carrying out subparagraph (B), the

18 Secretary may contract with an appropriate

19 agent to implement the installation program es20 tablished under that subparagraph, except that

21 such agent shall not be a person or entity other

22 than a government, nor an affiliate or sub23 sidiary of such a person or entity, that has en24 tered into a contract with the Secretary to im-
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1 plement any other regulatory program under

2 this title.

3 ‘‘(3) REQUIREMENTS.—An installation program

4 meets the requirements of this paragraph if it is a

5 program regulating the installation of manufactured

6 homes that includes—

7 ‘‘(A) installation standards that, in the de8 termination of the Secretary, provide protection

9 to the residents of manufactured homes that

10 equals or exceeds the protection provided to those

11 residents by—

12 ‘‘(i) the model manufactured home in13 stallation standards established under sub14 section (b); or

15 ‘‘(ii) the designs and instructions pro16 vided by manufacturers under subsection

17 (a), if the Secretary determines that such

18 designs and instructions provide protection

19 to the residents of the manufactured home

20 that equals or exceeds the protection pro21 vided by the model manufactured home in22 stallation standards established under sub23 section (b);

24 ‘‘(B) the training and licensing of manufac25 tured home installers; and
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1 ‘‘(C) inspection of the installation of manu2 factured homes.’’.

3 (b) CONFORMING AMENDMENTS.—Section 623(c) (42

4 U.S.C. 5422(c)) is amended—

5 (1) in paragraph (10), by striking ‘‘and’’ at the

6 end;

7 (2) by redesignating paragraph (11) as para8 graph (13); and

9 (3) by inserting after paragraph (10) the fol10 lowing:

11 ‘‘(11) with respect to any State plan submitted

12 on or after the expiration of the 5-year period begin13 ning on the date of enactment of the Manufactured

14 Housing Improvement Act, provides for an installa15 tion program established by State law that meets the

16 requirements of section 605(c)(3);’’.

17 SEC. 1106. PUBLIC INFORMATION.

18 Section 607 (42 U.S.C. 5406) is amended—

19 (1) in subsection (a)—

20 (A) by inserting ‘‘to the Secretary’’ after

21 ‘‘submit’’; and

22 (B) by adding at the end the following:

23 ‘‘The Secretary shall submit such cost and other

24 information to the consensus committee for eval25 uation.’’;
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1 (2) in subsection (d), by inserting ‘‘, the con2 sensus committee,’’ after ‘‘public’’; and

3 (3) by striking subsection (c) and redesignating

4 subsections (d) and (e) as subsections (c) and (d), re5 spectively.

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

7 TRAINING.

8 (a) IN GENERAL.—Section 608(a) (42 U.S.C. 5407(a))

9 is amended—

10 (1) in paragraph (2), by striking ‘‘and’’ at the

11 end;

12 (2) in paragraph (3), by striking the period at

13 the end and inserting a semicolon; and

14 (3) by adding at the end the following new para15 graphs:

16 ‘‘(4) encouraging the government sponsored hous17 ing entities to actively develop and implement sec18 ondary market securitization programs for FHA

19 manufactured home loans and those of other loan pro20 grams, as appropriate, thereby promoting the avail21 ability of affordable manufactured homes to increase

22 homeownership for all people in the United States;

23 and

24 ‘‘(5) reviewing the programs for FHA manufac25 tured home loans and developing any changes to such
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1 programs to promote the affordability of manufac2 tured homes, including changes in loan terms, amor3 tization periods, regulations, and procedures.’’.

4 (b) DEFINITIONS.—Section 608 (42 U.S.C. 5407) is

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

6 ‘‘(c) DEFINITIONS.—For purposes of this section, the

7 following definitions shall apply:

8 ‘‘(1) GOVERNMENT SPONSORED HOUSING ENTI9 TIES.—The term ‘government sponsored housing enti10 ties’ means the Government National Mortgage Asso11 ciation of the Department of Housing and Urban De12 velopment, the Federal National Mortgage Associa13 tion, and the Federal Home Loan Mortgage Corpora14 tion.

15 ‘‘(2) FHA MANUFACTURED HOME LOANS.—The

16 term ‘FHA manufactured home loan’ means a loan

17 that—

18 ‘‘(A) is insured under title I of the National

19 Housing Act and is made for the purpose of fi20 nancing alterations, repairs, or improvements on

21 or in connection with an existing manufactured

22 home, the purchase of a manufactured home, the

23 purchase of a manufactured home and a lot on

24 which to place the home, or the purchase only of

25 a lot on which to place a manufactured home; or
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1 ‘‘(B) otherwise insured under the National

2 Housing Act and made for or in connection with

3 a manufactured home.’’.

4 SEC. 1108. FEES.

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

6 follows:

7 ‘‘AUTHORITY TO ESTABLISH FEES

8 ‘‘SEC. 620. (a) IN GENERAL.—In carrying out inspec9 tions under this title, in developing standards and regula10 tions pursuant to section 604, and in facilitating the ac11 ceptance of the affordability and availability of manufac12 tured housing within the Department, the Secretary may—

13 ‘‘(1) establish and collect from manufactured

14 home manufacturers such reasonable fees as may be

15 necessary to offset the expenses incurred by the Sec16 retary in connection with carrying out the respon17 sibilities of the Secretary under this title, including—

18 ‘‘(A) conducting inspections and moni19 toring;

20 ‘‘(B) providing funding to States for the ad21 ministration and implementation of approved

22 State plans under section 623, including reason23 able funding for cooperative educational and

24 training programs designed to facilitate uniform

25 enforcement under this title; these funds may be

26 paid directly to the States or may be paid or
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1 provided to any person or entity designated to

2 receive and disburse such funds by cooperative

3 agreements among participating States, provided

4 that such person or entity is not otherwise an

5 agent of the Secretary under this title;

6 ‘‘(C) providing the funding for a noncareer

7 administrator and Federal staff personnel for the

8 manufactured housing program;

9 ‘‘(D) administering the consensus committee

10 as set forth in section 604; and

11 ‘‘(E) facilitating the acceptance of the qual12 ity, durability, safety, and affordability of man13 ufactured housing within the Department; and

14 ‘‘(2) use any fees collected under paragraph (1)

15 to pay expenses referred to in paragraph (1), which

16 shall be exempt and separate from any limitations on

17 the Department of Housing and Urban Development

18 regarding full-time equivalent positions and travel.

19 ‘‘(b) CONTRACTORS.—When using fees under this sec20 tion, the Secretary shall ensure that separate and inde21 pendent contractors are retained to carry out monitoring

22 and inspection work and any other work that may be dele23 gated to a contractor under this title.

24 ‘‘(c) PROHIBITED USE.—Fees collected under sub25 section (a) shall not be used for any purpose or activity
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1 not specifically authorized by this title unless such activity

2 was already engaged in by the Secretary prior to the date

3 of enactment of this title.

4 ‘‘(d) MODIFICATION.—Any fee established by the Sec5 retary under this section shall only be modified pursuant

6 to rulemaking in accordance with section 553 of title 5,

7 United States Code.

8 ‘‘(e) APPROPRIATION AND DEPOSIT OF FEES.—

9 ‘‘(1) IN GENERAL.—There is established in the

10 Treasury of the United States a fund to be known as

11 the ‘Manufactured Housing Fees Trust Fund’ for de12 posit of all fees collected pursuant to subsection (a).

13 These fees shall be held in trust for use only as pro14 vided in this title.

15 ‘‘(2) APPROPRIATION.—Such fees shall be avail16 able for expenditure only to the extent approved in an

17 annual appropriation Act.’’.

18 SEC. 1109. DISPUTE RESOLUTION.

19 Section 623(c) (42 U.S.C. 5422(c)), as amended by sec20 tion 5(b) of this Act, is amended by inserting after para21 graph (11) (as added by section 5(b) of this Act) the fol22 lowing:

23 ‘‘(12) with respect to any State plan submitted

24 on or after the expiration of the 5-year period begin25 ning on the date of enactment of the Manufactured
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1 Housing Improvement Act, provides for a dispute res2 olution program for the timely resolution of disputes

3 between manufacturers, retailers, and installers of

4 manufactured homes regarding responsibility, and for

5 the issuance of appropriate orders, for the correction

6 or repair of defects in manufactured homes that are

7 reported during the 1-year period beginning on the

8 date of installation; and’’; and

9 (2) by adding at the end the following:

10 ‘‘(g) ENFORCEMENT OF DISPUTE RESOLUTION STAND11 ARDS.—

12 ‘‘(1) ESTABLISHMENT OF DISPUTE RESOLUTION

13 PROGRAM.—Not later than the expiration of the 5-

14 year period beginning on the date of enactment of the

15 Manufactured Housing Improvement Act, the Sec16 retary shall establish a dispute resolution program

17 that meets the requirements of subsection (c)(12) for

18 dispute resolution in each State described in para19 graph (2).

20 ‘‘(2) IMPLEMENTATION OF DISPUTE RESOLUTION

21 PROGRAM.—Beginning on the expiration of the 5-year

22 period described in paragraph (1), the Secretary shall

23 implement the dispute resolution program established

24 under paragraph (1) in each State that has not estab-
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1 lished a dispute resolution program that meets the re2 quirements of subsection (c)(12).

3 ‘‘(3) CONTRACTING OUT OF IMPLEMENTATION.—

4 In carrying out paragraph (2), the Secretary may

5 contract with an appropriate agent to implement the

6 dispute resolution program established under that

7 paragraph, except that such agent shall not be a per8 son or entity other than a government, nor an affil9 iate or subsidiary of such a person or entity, that has

10 entered into a contract with the Secretary to imple11 ment any other regulatory program under this title.’’.

12 SEC. 1110. ELIMINATION OF ANNUAL REPORT REQUIRE13 MENT.

14 The Act is amended—

15 (1) by striking section 626 (42 U.S.C. 5425);

16 and

17 (2) by redesignating sections 627 and 628 (42

18 U.S.C. 5426, 5401 note) as sections 626 and 627, re19 spectively.

20 SEC. 1111. EFFECTIVE DATE.

21 The amendments made by this title shall take effect

22 on the date of enactment of this Act, except that the amend23 ments shall have no effect on any order or interpretative

24 bulletin that is published as a proposed rule pursuant to
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1 section 553 of title 5, United States Code, on or before such

2 date.

3 SEC. 1112. SAVINGS PROVISION.

4 (a) STANDARDS AND REGULATIONS.—The Federal

5 manufactured home construction and safety standards (as

6 such term is defined in section 603 of the National Manu7 factured Housing Construction and Safety Standards Act

8 of 1974) and all regulations pertaining thereto in effect im9 mediately before the date of the enactment of this Act shall

10 apply until the effective date of a standard or regulation

11 modifying or superseding the existing standard or regula12 tion which is promulgated under subsection (a) or (b) of

13 section 604 of the National Manufactured Housing Con14 struction and Safety Standards Act of 1974, as amended

15 by this title.

16 (b) CONTRACTS.—Any contract awarded pursuant to

17 a Request for Proposal issued before the date of enactment

18 of this Act shall remain in effect for a period of 2 years

19 from the date of enactment of this Act or for the remainder

20 of the contract term, whichever period is shorter.